Document:

exv10w11

 

EXHIBIT 10.11

SILICON MOUNTAIN MEMORY INCORPORATED

2003 EQUITY INCENTIVE PLAN

(Revised 10/15/03)

ARTICLE 1

INTRODUCTION

     1.1 Establishment. Silicon Mountain Memory, Incorporated, a Colorado corporation (the
“Company”), hereby establishes the Silicon Mountain Memory Incorporated, 2003 Equity Incentive Plan
(the “Plan”) for certain employees of the Company (as defined in subsection 2.1(i)) and certain
consultants to the Company. The Plan permits the grant of incentive stock options within the
meaning of Section 422 of the Internal Revenue Code of 1986, as amended, non-qualified stock
options, restricted stock awards, stock appreciation rights, stock bonuses, and other stock grants
to certain key employees of the Company and to certain consultants to the Company.

     1.2 Purposes. The purposes of the Plan are to provide those who are selected for
participation in the Plan with added incentives to continue in the long-term service of the Company
and to create in such persons a more direct interest in the future success of the operations of the
Company by relating incentive compensation to increases in shareholder value, so that the income of
those participating in the Plan is more closely aligned with the income of the Company’s
shareholders. The Plan is also designed to provide a financial incentive that will help the
Company attract, retain and motivate the most qualified employees and consultants.

     1.3 Effective Date. The effective date of the Plan is the date of adoption by the
Board of Directors.

ARTICLE II

DEFINITIONS

     2.1 Definitions. The following terms shall have the meanings set forth below:

          (a) “Affiliated Corporation” means any corporation or other entity that is affiliated with the
Company through stock ownership or otherwise and is designated as an “Affiliated Corporation” by
the Board, provided, however, that for purposes of Incentive Options granted pursuant to the Plan,
an “Affiliated Corporation” means any parent or subsidiary of the Company as defined in Section 424
of the Code.

          (b) “Award” means an Option, a Restricted Stock Award, a Stock Appreciation Right, grants of
Stock pursuant to Article X or other issuances of Stock hereunder.

Silicon Mountain Memory, Incorporated 2003 Equity Incentive Plan

1

 

          (c) “Board” means the Board of Directors of the Company.

          (d) “Code” means the Internal Revenue Code of 1986, as it may be amended from time to time.

          (e) “Committee” means a committee consisting of members of the Board or officers of the
Company who are empowered hereunder to take actions in the administration of the Plan. The
Committee shall select Participants from Eligible Employees and Eligible Consultants of the Company
and shall determine the Awards to be made pursuant to the Plan and the terms and conditions
thereof.

          (f) “Company” means Silicon Mountain Memory Incorporated, and the Affiliated Corporations.

          (g) “Disabled” or “Disability” shall have the meaning given to such terms in Section 22(e)(3)
of the Code.

          (h) “Effective Date” means the original effective date of the Plan.

          (i) “Eligible Employees” means those employees (including, without limitation, officers and
directors who are also employees) of the Company or any subsidiary or division hereof, upon whose
judgment, initiative and efforts the Company is, or will become, largely dependent for the
successful conduct of its business. For purposes of the Plan, an employee is any individual who
provides services to the Company or any subsidiary or division thereof as a common law employee and
whose remuneration is subject to the withholding of federal income tax pursuant to section 3401 of
the Code. Employee shall not include any individual (A) who provides services to the Company or
any subsidiary or division thereof under an agreement, contract, or any other arrangement pursuant
to which the individual is initially classified as an independent contractor or (B) whose
remuneration for services has not been treated initially as subject to the withholding of federal
income tax pursuant to section 3401 of the Code even if the individual is subsequently reclassified
as a common law employee as a result of a final decree of a court of competent jurisdiction or the
settlement of an administrative or judicial proceeding. Leased employees within the meaning of
section 414(n) of the Code shall not be treated as employees under this Plan.

          (j) “Eligible Consultants” means those consultants to the Company who are determined, by the
Committee, to be individuals whose services are important to the Company and who are eligible to
receive Awards, other than Incentive Options, under the Plan.

          (k) “Fair Market Value” of a share of Stock shall be the last sales price, or if no sales took
place, the average of the closing bid and asked prices on the day the determination is to be made,
or if the market is closed on such day, the last day prior to the date of determination on which
the market was open for the transaction of business, as reported in the principal consolidated
transaction reporting system for the principal national securities exchange on which the Stock is
listed or admitted for trading. If the Stock is not listed on a national securities exchange, but
is traded on the NASDAQ System or on the OTC Bulletin Board, Fair Market Value shall be the last
reported sales price of the Stock on the NASDAQ or on the OTC Bulletin Board System on the day the
determination is to be made, or if no sale took place on such day, the average of the closing bid
and asked prices of the Stock on the last day prior to the date of

Silicon Mountain Memory, Incorporated 2003 Equity Incentive Plan

2

 

determination on which the market was open for the transaction of business, as reported by NASDAQ
or the NASD. If the Stock is not listed or traded on NASDAQ, the OTC Bulletin Board, or on any
national securities exchange, the Fair Market Value for purposes of the grant of Options under the
Plan shall be determined by the Committee in good faith in its sole discretion.

          (l) “Incentive Option” means an Option designated as such and granted in accordance with
Section 422 of the Code.

          (m) “Non-Qualified Option” means any Option other than an Incentive Option.

          (n) “Option” means a right to purchase Stock at a stated or formula price for a specified
period of time. Options granted under the Plan shall be either Incentive Options or Non-Qualified
Options.

          (o) “Option Certificate” shall have the meaning given to such term in Section 7.2 hereof.

          (p) “Option Holder” means a Participant who has been granted one or more Options under the
Plan.

          (q) “Option Price” means the price at which each share of Stock subject to an Option may be
purchased, determined in accordance with subsection 7.2(b).

          (r) “Participant” means an Eligible Employee or Eligible Consultant designated by the
Committee from time to time during the term of the Plan to receive one or more of the Awards
provided under the Plan.

          (s) “Restricted Stock Award” means an Award of Stock granted to a Participant pursuant to
Article VIII that is subject to certain restrictions imposed in accordance with the provisions of
such Section.

          (t) “Share” means a share of Stock.

          (u) “Stock” means a share of stock.

          (v) “Stock Appreciation Right” means the right, granted by the Committee pursuant to the Plan,
to receive a payment equal to the increase in the Fair Market Value of a Share of Stock subsequent
to the grant of such Award.

          (w) “Stock Bonus” means either an outright grant of Stock or a grant of Stock subject to and
conditioned upon certain employment or performance related goals.

          2.2 Gender and Number. Except when otherwise indicated by the context, the masculine
gender shall also include the feminine gender, and the definition of any term herein in the
singular shall also include the plural.

ARTICLE III

PLAN ADMINISTRATOR

          3.1 General. The Plan shall be administered by the Committee. In accordance with the
provisions of the Plan, the Committee shall, in its sole discretion, select the Participants from
among the Eligible Employees and Eligible Consultants, determine the Awards to be made pursuant to
the Plan, the number of Stock Appreciation Rights or shares of Stock to be issued

Silicon Mountain Memory, Incorporated 2003 Equity Incentive Plan

3

 

thereunder and the time at which such Awards are to be made, fix the Option Price, period and
manner in which an Option becomes exercisable, establish the duration and nature of Restricted
Stock award restrictions, establish the terms and conditions applicable to Stock Bonuses, and
establish such other terms and requirements of the various compensation incentives under the Plan
as the Committee may deem necessary or desirable and consistent with the terms of the Plan. The
Committee shall determine the form or forms of the agreements with Participants that shall evidence
the particular provisions, terms, conditions, rights and duties of the Company and the Participants
with respect to Awards granted pursuant to the Plan, which provisions need not be identical except
as may be provided herein; provided, however, that Eligible Consultants shall not be eligible to
receive Incentive Options. The Committee may from time to time adopt such rules and regulations
for carrying out the purposes of the Plan as it may deem proper and in the best interests of the
Company. The Committee may correct any defect, supply any omission or reconcile any inconsistency
in the Plan or in any agreement entered into hereunder in the manner and to the extent it shall
deem expedient and it shall be the sole and final judge of such expediency. No member of the
Committee shall be liable for any action or determination made in good faith. The determinations,
interpretations and other actions of the Committee pursuant to the provisions of the Plan shall be
binding and conclusive for all purposes and on all persons.

ARTICLE IV

STOCK SUBJECT TO THE PLAN

     4.1 Number of Shares: The number of shares of Stock that are authorized for issuance
under the Plan in accordance with the provisions of the Plan and subject to such restrictions or
other provisions as the Committee may from time to time deem necessary shall not exceed 2,200,000
shares. This authorization may be increased from time to time by approval of the Board and by the
shareholders of the Company if, in the opinion of counsel for the Company, shareholder approval is
required. Shares of Stock that may be issued upon exercise of Options, or Stock Appreciation
Rights, that are issued as Restricted Stock awards, and that are issued as incentive compensation
or other stock grants under the Plan shall be applied to reduce the maximum number of shares of
Stock remaining available for use under the Plan. The Company shall at all times during the term
of the Plan and while any Options are outstanding retain as authorized and unissued Stock at least
the number of shares from time to time required under the provisions of the Plan, or otherwise
assure itself of its ability to perform its obligations hereunder.

     4.2 Other Shares of Stock. Any shares of Stock that are subject to an Option that
expires or for any reason is terminated unexercised, any shares of Stock that are subject to an
Award (other than an Option) and that are forfeited, and any shares of Stock withheld for the
payment of taxes or received by the Company as payment of the exercise price of an Option shall
automatically become available for use under the Plan.

Silicon Mountain Memory, Incorporated 2003 Equity Incentive Plan

4

 

     4.3 Adjustments for Stock Split, Stock Dividend, Etc. If the Company shall at any
time increase or decrease the number of its outstanding Shares or change in any way the rights and
privileges of such Shares by means of the payment of a stock dividend or any other distribution
upon such shares payable in Stock, or through a stock split, subdivision, consolidation,
combination, reclassification or recapitalization involving the Stock, then in relation to the
Stock that is affected by one or more of the above events, the numbers, rights and privileges of
the following shall be increased, decreased or changed in like manner as if they had been issued
and outstanding, fully paid and non-assessable at the time of such occurrence: (i) the Shares as to
which Awards may be granted under the Plan, (ii) the Shares then included in each outstanding Award
granted hereunder, (iii) the maximum number of Shares available for grant to any one person in a
calendar year, (iv) the maximum number of Shares available for grant pursuant to Incentive Options,
and (v) the number of Shares subject to a delegation of authority under Section 4.2 of this Plan.

     4.4 Other Distributions and Changes in the Stock. If

          (a) The Company shall at any time distribute with respect to the Stock, assets or securities
of persons other than the Company (excluding cash or distributions referred to in Section 4.3), or

          (b) The Company shall at any time grant to the holders of its Stock, rights to subscribe pro
rata for additional shares thereof or for any other securities of the Company, or

          (c) there shall be any other change (except as described in Section 4.3) in the number or kind
of outstanding Shares or of any stock or other securities into which the Stock shall be changed or
for which it shall have been exchanged, and if the Committee shall in its discretion determine that
the event described in subsection (a), (b), or (c) above equitably requires an adjustment in the
number or kind of Shares subject to an Option or other Award, an adjustment in the Option Price or
the taking of any other action by the Committee, including without limitation, the setting aside of
any property for delivery to the Participant upon the exercise of an Option or the full vesting of
an Award, then such adjustments shall be made, or other action shall be taken, by the Committee and
shall be effective for all purposes of the Plan and on each outstanding Option or Award that
involves the particular type of stock for which a change was effected. Notwithstanding the
foregoing provisions of this Section 4.4, pursuant to Section 8.3 below, a Participant holding
Stock received as a Restricted Stock Award shall have the right to receive all amounts, including
cash and property of any kind, distributed with respect to the Stock after such Restricted Stock
Award was granted upon the Participant’s becoming a holder of record of the Stock.

     4.5 General Adjustment Rules. No adjustment or substitution provided for in this
Article IV shall require the Company to sell a fractional share of Stock under any Option, or
otherwise issue a fractional share of Stock, and the total substitution or adjustment with respect
to each Option and other Award shall be limited by deleting any fractional share. In the case of
any such substitution or adjustment, the aggregate Option Price for the total number of shares of
Stock then subject to an Option shall remain unchanged but the Option Price per share under

Silicon Mountain Memory, Incorporated 2003 Equity Incentive Plan

5

 

each such Option shall be equitably adjusted by the Committee to reflect the greater or lesser
number of shares of Stock or other securities into which the Stock subject to the Option may have
been changed, and appropriate adjustments shall be made to other Awards to reflect any such
substitution or adjustment.

     4.6 Determination by the Committee. Adjustments under this Article IV shall be made
by the Committee, whose determinations with regard thereto shall be final and binding upon all
parties thereto.

ARTICLE V

CORPORATE REORGANIZATION; CHANGE IN CONTROL

     5.1 Reorganization. Except as provided otherwise by the Committee at the time an
Award is granted, upon the occurrence of any of the following events, if the notice required by
Section 5.2 shall have first been given, the Plan and all Options then outstanding hereunder shall
automatically terminate and be of no further force and effect whatsoever, and other Awards then
outstanding shall be treated as described in Sections 5.2 and 5.3, without the necessity for any
additional notice or other action by the Board or the Company: (a) the merger or consolidation of
the Company with or into another corporation or other reorganization (other than a consolidation,
merger, or reorganization in which the Company is the continuing corporation and which does not
result in any reclassification or change of outstanding shares of Stock); or (b) the sale or
conveyance of the property of the Company as an entirety or substantially as an entirety (other
than a sale or conveyance in which the Company continues as a holding company of an entity or
entities that conduct the business or businesses formerly conducted by the Company); or (c) the
dissolution or liquidation of the Company.

     5.2 Required Notice. At least 30 days prior written notice of any event described in
Section 5.1 shall be given by the Company to each Option Holder and Participant unless (a) in the
case of the events described in clauses (a) or (b) of Section 5.1, the Company, or the successor or
purchaser, as the case may be, shall make adequate provision for the assumption of the outstanding
Options or the substitution of new options for the outstanding Options on terms comparable to the
outstanding Options except that the Option Holder shall have the right thereafter to purchase the
kind and amount of securities or property or cash receivable upon such merger, consolidation, other
reorganization, sale or conveyance by a holder of the number of Shares that would have been
receivable upon exercise of the Option immediately prior to such merger, consolidation, sale or
conveyance (assuming such holder of Stock failed to exercise any rights of election and received
per share the kind and amount received per share by a majority of the non-electing shares), or (b)
the Company, or the successor or purchaser, as the case may be, shall make adequate provision for
the adjustment of outstanding awards (other than Options) so that such Awards shall entitle the
Participant to receive the kind and amount of securities or property or cash receivable upon such
merger, consolidation, other reorganization, sale or

Silicon Mountain Memory, Incorporated 2003 Equity Incentive Plan

6

 

conveyance by a holder of the number of Shares that would have been receivable with respect to such
Award immediately prior to such merger, consolidation, other reorganization, sale or conveyance
(assuming such holder of Stock failed to exercise any rights of election and received per share the
kind and amount received per share by a majority of the non-electing shares). The provisions of
this Article V shall similarly apply to successive mergers, consolidations, reorganizations, sale
or conveyances. Such notice shall be deemed to have been given when delivered personally to a
Participant or when mailed to a Participant by registered or certified mail, postage prepaid, at
such Participant’s address last known to the Company.

     5.3 Acceleration of Exercisability. Participants notified in accordance with Section
5.2 may exercise their Options at any time before the occurrence of the event requiring the giving
of notice (but subject to occurrence of such event), regardless of whether all conditions of
exercise relating to length of service, attainment of financial performance goals or otherwise have
been satisfied. Upon the giving of notice in accordance with Section 5.2, all restrictions with
respect to Restricted Stock and other awards shall lapse immediately and all Stock Appreciation
Rights shall become exercisable. Any Options or Stock Appreciation Rights that are not assumed or
substituted under clauses (a) or (b) of Section 5.2 that have not been exercised prior to the event
described in Section 5.1 shall automatically terminate upon the occurrence of such event.

     5.4 Reorganization of Affiliated Corporations. If an Affiliated Corporation is merged
or consolidated with another corporation (other than a merger or consolidation pursuant to which
the Affiliated Corporation continues to be, or the continuing corporation is, affiliated with the
Company through stock ownership or control), or if all or substantially all of the assets or more
than fifty percent (50%) of the stock of the Affiliated Corporation is acquired by any other
corporation, business entity or person (other than a transaction in which the successor is
affiliated with the Company through stock ownership or control), or in the case of a reorganization
(other than a reorganization under the United States Bankruptcy Code) including a devisive
reorganization under Section 355 of the Code, or liquidation of the Affiliated Corporation, the
Committee may, as to outstanding Awards, make appropriate provision for the protection of
outstanding Awards granted to Eligible Employees of, and Eligible Consultants to, the affected
Affiliated Corporation by (i) providing for the assumption of outstanding Options or the
substitution of new Options for outstanding Options by the successor on terms comparable to the
outstanding Options, (ii) providing for the adjustment of outstanding Awards, or (iii) taking such
other action with respect to outstanding Awards as the Committee deems appropriate.

ARTICLE VI

PARTICIPATION

     Participants in the Plan shall be those Eligible Employees who, in the judgment of the
Committee, are performing, or during the term of their incentive arrangement will perform, vital

Silicon Mountain Memory, Incorporated 2003 Equity Incentive Plan

7

 

services in the management, operation and development of the Company, and significantly contribute,
or are expected to significantly contribute, to the achievement of long-term corporate economic
objectives. Eligible Consultants shall be selected from those non-employee consultants to the
Company who are performing services important to the operation and growth of the Company.
Participants may be granted from time to time one or more Awards; provided, however, that the grant
of each such Award shall be separately approved by the Committee and receipt of one such Award
shall not result in automatic receipt of any other Award. Upon determination by the Committee that
an Award is to be granted to a Participant, written notice shall be given to such person,
specifying the terms, conditions, rights and duties related thereto. Each Participant shall, if
required by the Committee, enter into an agreement with the Company, in such form as the Committee
shall determine and which is consistent with the provisions of the Plan, specifying such terms,
conditions, rights and duties. Awards shall be deemed to be granted as of the date specified in
the grant resolution of the Committee, which date shall be the date of any related agreement with
the Participant. In the event of any inconsistency between the provisions of the Plan and any such
agreement entered into hereunder, the provisions of the Plan shall govern.

ARTICLE VII

OPTIONS

     7.1 Grant of Option. Coincident with or following designation for participation in
the Plan, a Participant may be granted one or more Options. The Committee in its sole discretion
shall designate whether an Option is an Incentive Option or a Non-Qualified Option; provided,
however, that only Non-Qualified Options may be granted to Eligible Consultants. The Committee may
grant both an Incentive Option and a Non-qualified Option to an eligible Employee at the same time
or at different times. Incentive Options and Non-Qualified Options, whether granted at the same
time or at different times, shall be deemed to have been awarded in separate grants and shall be
clearly identified, and in no event shall the exercise of one Option affect the right to exercise
any other Option or affect the number of shares for which any other Option may be exercised. An
Option shall be considered as having been granted on the date specified in the grant resolution of
the Committee.

     7.2 Stock Option Certificates. Each Option granted under the Plan shall be evidenced
by a written stock option certificate or agreement (an “Option Certificate”). An Option
Certificate shall be issued by the Company in the name of the Participant to whom the Option is
granted (the “Option Holder”) and in such form as may be approved by the Committee. The Option
Certificate shall incorporate and conform to the conditions set forth in this Section 7.2 as well
as such other terms and conditions that are not inconsistent as the Committee may consider
appropriate in each case.

          (a) Number of Shares. Each Option Certificate shall state that it covers a specified
number of shares of Stock, as determined by the Committee.

Silicon Mountain Memory, Incorporated 2003 Equity Incentive Plan

8

 

          (b) Price. The price at which each share of Stock covered by an Option may be
purchased shall be determined in each case by the Committee and set forth in the Option
Certificate, but, in the case of an Incentive Option, in no event shall the price be less than 100
percent of the Fair Market Value of the Stock on the date the Incentive Option is granted.

          (c) Duration of Options; Restrictions on Exercise. Each Option Certificate shall
state the period of time, determined by the Committee, within which the Option may be exercised by
the Option Holder (the “Option Period”). The Option Period must end, in all cases, not more than
ten years from the date the Option is granted. The Option Certificate shall also set forth any
installment or other restrictions on exercise of the Option during such period, if any, as may be
determined by the Committee. Each Option shall become exercisable (vest) over such period of time,
or upon such events, as determined by the Committee.

          (d) Termination of Services, Death, Disability, Etc. The Committee may specify the
period, if any, during which an Option may be exercised following termination of the Option
Holder’s services. The effect of this subsection 7.2(d) shall be limited to determining the
consequences of a termination and nothing in this subsection 7.2(d) shall restrict or otherwise
interfere with the Company’s discretion with respect to the termination of any individual’s
services. If the Committee does not otherwise specify, the following shall apply:

          (i) If the services of the Option Holder are terminated within the Option Period for “cause,”
as determined by the Company, the Option shall thereafter be void for all purposes. As used in
this subsection 7.2(d), “cause” shall mean willful misconduct, a willful failure to perform the
Option Holder’s duties, insubordination, theft, dishonesty, conviction of a felony or any other
willful conduct that is materially detrimental to the Company or such other cause as the Board in
good faith reasonably determines provides cause for the discharge of an Option Holder.

          (ii) If the Option Holder becomes Disabled, the Option may be exercised by the Option Holder
within one year following the Option Holder’s termination of services on account of Disability
(provided that such exercise must occur within the Option Period), but not thereafter. In any such
case, the Option may be exercised only as to the shares as to which the Option had become
exercisable on or before the date of the Option Holder’s termination of services because of
Disability.

          (iii) If the Option Holder dies during the Option Period while still performing services for
the Company or within the one year period referred to in (ii) above or the three-month period
referred to in (iv) below, the Option may be exercised by those entitled to do so under the Option
Holder’s will or by the laws of descent and distribution within one year following the Option
Holder’s death, (provided that such exercise must occur within the Option Period), but not
thereafter. In any such case, the Option may be exercised only as to the shares as to which the
Option had become exercisable on or before the date of the Option Holder’s death.

          (iv) If the services of the Option Holder are terminated (which for this purpose means that
the Option Holder is no longer employed by the Company or performing services for the Company) by
the Company within the Option Period for any reason other than cause, Disability, or death, the
Option may be exercised by the Option Holder within thirty (30) days following the date of such
termination (provided that such exercise must occur within the Option

Silicon Mountain Memory, Incorporated 2003 Equity Incentive Plan

9

 

Period), but not thereafter. In any case, the Option may be exercised only as to the shares as to
which the Option had become exercisable on or before the date of termination of services.

          (e) Transferability. Each Option shall not be transferable by the Option Holder
except by will or pursuant to the laws of descent and distribution. Each Option is exercisable
during the Option Holder’s lifetime only by him or her, or in the event of Disability or
incapacity, by his or her guardian or legal representative. The Committee may, however, provide at
the time of grant or thereafter that the Option Holder may transfer a Non-Qualified Option to a
member of the Option Holder’s immediate family, a trust of which members of the Option Holder’s
immediate family are the only beneficiaries, or a partnership of which members of the Option
Holder’s immediate family or trusts for the sole benefit of the Option Holder’s immediate family
are the only partners. Immediate family means the Option Holder’s spouse, issue (by birth or
adoption), parents, grandparents, and siblings (including half brothers and sisters and adopted
siblings). During the Option Holder’s lifetime the Option Holder may not transfer an Incentive
Option under any circumstances.

          (f) Consideration for Grant of Option. Each Option Holder agrees to remain in the
employment of the Company or to continue providing consulting services to the Company, as the case
may be, at the pleasure of the Company, for a continuous period of at least one year after the date
the Option is granted, at the rate of compensation in effect on the date of such agreement or at
such changed rate as may be fixed, from time to time, by the Company. Nothing in this paragraph
shall limit or impair the Company’s right to terminate the employment of any employee or to
terminate the consulting services of any consultant.

          (g) Exercise, Payments, Etc.

               (i) The method for exercising each Option granted hereunder shall be by delivery to the
Company of written notice specifying the number of Shares with respect to which such Option is
exercised. The purchase of such Shares shall take place at the principal offices of the Company
within thirty days following delivery of such notice, at which time the Option Price of the Shares
shall be paid in full as set forth below. Except as set forth in the next sentence, the Option
shall be exercised when the Option Price for the number of shares as to which the Option is
exercised is paid to the Company in full. If the Option Price is paid by means of a broker’s loan
transaction described in subsection 7.2(g)(ii)(B), in whole or in part, the closing of the purchase
of the Stock under the Option shall take place (and the Option shall be treated as exercised) on
the date on which, and only if, the sale of Stock upon which the broker’s loan was based has been
closed and settled, unless the Option Holder makes an irrevocable written election, at the time of
exercise of the Option, to have the exercise treated as fully effective for all purposes upon
receipt of the Option Price by the Company regardless of whether or not the sale of the Stock by
the broker is closed and settled. A properly executed certificate or certificates representing the
Shares shall be delivered to or at the direction of the Option Holder upon payment therefor. If
Options on less than all shares evidenced by an Option Certificate are exercised, the Company shall
deliver a new Option Certificate evidencing the Option on the remaining shares upon delivery of the
Option Certificate for the Option being exercised.

               (ii) The Option Price may be paid in cash, or by certified check, cashiers check or other
check acceptable to the Company, payable to the order of the Company. Upon request of

Silicon Mountain Memory, Incorporated 2003 Equity Incentive Plan

10

 

the Option Holder, and if approved by the Committee, the Option Price may be paid by any of the
following methods or any combination of methods:

                    (A) by delivery to the Company of certificates representing the number of shares then owned by
the Option Holder, the Fair Market Value of which equals the purchase price of the Stock purchased
pursuant to the Option, property endorsed for transfer to the Company; provided however, that no
Option may be exercised by delivery to the Company of certificates representing Stock, unless such
Stock has been held by the Option Holder for more than six months; for purposes of this Plan, the
Fair Market Value of any shares of Stock delivered in payment of the purchase price upon exercise
of the Option shall be the Fair Market Value as of the exercise date; the exercise date shall be
the day of delivery of the certificates for the Stock used as payment of the Option Prices; or

                    (B) by delivery to the Company of a properly executed notice of exercise together with
irrevocable instructions to a broker to deliver to the Company promptly the amount of the proceeds
of the sale of all or a portion of the Stock or of a loan from the broker to the Option Holder
required to pay the Option Price.

               (h) Date of Grant. An Option shall be considered as having been granted on the date
specified in the grant resolution of the Committee.

               (i) Withholding.

                    (i) Non-Qualified Options. Upon exercise of an Option, the Option Holder shall make
appropriate arrangements with the Company to provide for the amount of additional withholding the
Company equity incentive plan requires by Sections 3102 and 3402 of the Code and applicable state
income tax laws, including payment of such taxes through delivery of shares of Stock or by
withholding Stock to be issued under the Option, as provided in Article XVI.

                    (ii) Incentive Options. If an Option Holder makes a disposition (as defined in
Section 424(c) of the Code) of any Stock acquired pursuant to the exercise of an Incentive Option
prior to the expiration of two years from the date on which the Incentive Option was granted or
prior to the expiration of one year from the date on which the Option was exercised, the Option
Holder shall send written notice to the Company at the Company’s principal place of business of the
date of such disposition, the number of shares disposed of, the amount of proceeds received from
such disposition and any other information relating to such disposition as the Company may
reasonably request. The Option Holder shall, in the event of such a disposition, make appropriate
arrangements with the Company to provide for the amount of additional withholding, if any, required
by Sections 3102 and 3402 of the Code and applicable state income tax laws.

     7.3 Restrictions on Incentive Options.

          (a) Initial Exercise. The aggregate Fair Market Value of the Shares with respect to
which Incentive Options are exercisable for the first time by an Option Holder in any calendar
year, under the Plan or otherwise, shall not exceed $100,000. For this purpose, the Fair Market
Value of the Shares shall be determined as of the date of grant of the Option.

Silicon Mountain Memory, Incorporated 2003 Equity Incentive Plan

11

 

          (b) Ten Percent Stockholders. Incentive Options granted to an Option Holder who is
the holder of record, or deemed owner under the attribution rules of the Code, of 10% or more of
the outstanding Stock of the Company shall have an Option Price equal to 110% of the Fair Market
Value of the Shares on the date of grant of the Option and the Option Period for any such Option
shall not exceed five years.

     7.4 Shareholder Privileges. No Option Holder shall have any rights as a shareholder
with respect to any shares of Stock covered by an Option until the Option Holder becomes the holder
of record of such Stock, and no adjustments shall be made for dividends or other distributions or
other rights as to which there is a record date preceding the date such Option Holder becomes the
holder of record of such Stock, except as provided in Article IV.

ARTICLE VIII

RESTRICTED STOCK AWARDS

     8.1 Grant of Restricted Stock Awards. Coincident with or following designation for
participation in the Plan, the Committee may grant a Participant one or more Restricted Stock
Awards consisting of Shares of Stock. The number of Shares granted as a Restricted Stock Award
shall be determined by the Committee.

     8.2 Restrictions. A Participant’s right to retain a Restricted Stock Award granted to
him under Section 8.1 shall be subject to such restrictions, including but not limited to his
continuous employment by or performance of services for the Company for a restriction period
specified by the Committee or the attainment of specified performance goals and objectives, as may
be established by the Committee with respect to such Award. The Committee may in its sole
discretion require different periods of service or different performance goals and objectives with
respect to different Participants, to different Restricted Stock Awards or to separate, designated
portions of the Shares constituting a Restricted Stock Award. In the event of the death or
Disability of a Participant, or the retirement of a Participant in accordance with the Company’s
established retirement policy, all required periods of service and other restrictions applicable to
Restricted Stock Awards then held by him shall lapse with respect to a pro rata part of each such
Award based on the ratio between the number of full months of employment or services completed at
the time of termination of services from the grant of each Award to the total number of months of
employment or continued services required for such Award to be fully nonforfeitable, and such
portion of each such Award shall become fully nonforfeitable. The remaining portion of each such
Award shall be forfeited and shall be immediately returned to the Company. If a Participant’s
employment or consulting services terminate for any other reason, any Restricted Stock Awards as to
which the period for which services are required or other restrictions have not been satisfied (or
waived or accelerated as provided herein) shall be forfeited, and all shares of Stock related
thereto shall be immediately returned to the Company.

Silicon Mountain Memory, Incorporated 2003 Equity Incentive Plan

12

 

     8.3 Privileges for a Stockholder, Transferability. A Participant shall have all
voting, dividend, liquidation and other rights with respect to Stock in accordance with its terms
received by him as a Restricted Stock Award under this Article VIII upon his becoming the holder of
record of such Stock; provided, however, that the Participant’s right to sell, encumber, or
otherwise transfer such Stock shall be subject to the limitations of Sections 13.2.

     8.4 Enforcement of Restrictions. The Committee shall cause a legend to be placed on
the Stock certificates issued pursuant to each Restricted Stock Award referring to the restrictions
provided by Section 8.2 and 8.3 and, in addition, may in its sole discretion require one or more of
the following methods of enforcing the restrictions referred to in Section 8.2 and 8.3:

          (a) Requiring the Participant to keep the Stock certificates, duly endorsed, in the custody of
the Company while the restrictions remain in effect; or

          (b) Requiring that the Stock certificates, duly endorsed, be held in the custody of a third
party while the restrictions remain in effect.

ARTICLE IX

STOCK APPRECIATION RIGHTS

     9.1 Persons Eligible. The Committee, in its sole discretion, may grant Stock
Appreciation Rights to Eligible Employees or Eligible Consultants.

     9.2 Terms of Grant. The Committee shall determine at the time of the grant of a Stock
Appreciation Right the time period during which the Stock Appreciation Right may be exercised and
any other terms that shall apply to the Stock Appreciation Right.

     9.3 Exercise. A Stock Appreciation Right shall entitle a Participant to receive a
number of shares of Stock (without any payment to the Company, except for applicable withholding
taxes), cash, or Stock and cash, as determined by the Committee in accordance with Section 9.4
below. If a Stock Appreciation Right is issued in tandem with an Option, except as may otherwise
be provided by the Committee, the Stock Appreciation Right shall be exercisable during the period
that its related Option is exercisable. A Participant desiring to exercise a Stock Appreciation
Right shall give written notice of such exercise to the Company, which notice shall state the
proportion of Stock and cash that the Participant desires to receive pursuant to the Stock
Appreciation Right exercised. Upon receipt of the notice from the Participant, the Company shall
deliver to the person entitled thereto (i) a certificate or certificates for Stock and/or (ii) a
cash payment, in accordance with Section 10.4 below. The date the Company receives written notice
of such exercise hereunder is referred to in this Article IX as the “exercise date.” The

Silicon Mountain Memory, Incorporated 2003 Equity Incentive Plan

13

 

delivery of Stock or cash received pursuant to such exercise shall take place at the principal
offices of the Company within 30 days following delivery of such notice.

     9.4 Number of Shares or Amount of Cash. Subject to the discretion of the Committee to
substitute cash for Stock, or Stock for cash, the number of Shares that may be issued pursuant to
the exercise of a Stock Appreciation Right shall be determined by dividing: (a) the total number of
Shares of Stock as to which the Stock Appreciation Right is exercised, multiplied by the amount by
which the Fair Market Value of one share of Stock on the exercise date exceeds the Fair Market
Value of one Share of Stock on the date of grant of one Share of Stock Appreciation Right, by (b)
the Fair Market Value of one Share of Stock on the exercise date; provided, however, that
fractional shares shall not be issued and in lieu thereof, a cash adjustment shall be paid. In
lieu of issuing Stock upon the exercise of a Stock Appreciation Right, the Committee in its sole
discretion may elect to pay the cash equivalent of the Fair Market Value of the Stock on the
exercise date for any or all of the Shares of Stock that would otherwise be issuable upon exercise
of the Stock Appreciation Right.

     9.5 Effect of Exercise. If a Stock Appreciation Right is issued in tandem with an
Option, the exercise of the Stock Appreciation Right or the related Option will result in an equal
reduction in the number of corresponding Options or Stock Appreciation Rights that were granted in
tandem with such Stock Appreciation Rights and Options.

     9.6 Termination of Services. Upon the termination of the services of a Participant,
any Stock Appreciation Rights then held by such Participant shall be exercisable within the time
periods, and upon the same conditions with respect to the reasons for termination of services, as
are specified in Section 7.2(d) with respect to Options.

ARTICLE X

STOCK BONUSES

     The Committee may award Stock Bonuses to such Participants, subject to such conditions and
restrictions, as it determines in its sole discretion. Stock Bonuses may be either outright grants
of Stock, or may be grants of Stock subject to and conditioned upon certain employment or
performance related goals.

ARTICLE XI

OTHER COMMON STOCK GRANTS

     From time to time during the duration of this Plan, the Board may, in its sole discretion,
adopt one or more incentive compensation arrangements for Participants pursuant to which the
Participants may acquire shares of Stock, whether by purchase, outright grant, or otherwise. Any

Silicon Mountain Memory, Incorporated 2003 Equity Incentive Plan

14

 

such arrangements shall be subject to the general provisions of this Plan and all shares of Stock
issued pursuant to such arrangements shall be issued under this Plan.

ARTICLE XII

RIGHTS OF PARTICIPANTS

     12.1 Service. Nothing contained in the Plan or in any Option, or other Award granted
under the Plan, shall confer upon any Participant any right with respect to the continuation of his
employment by, or consulting relationship with, the Company, or interfere in any way with the right
of the Company, subject to the terms of any separate employment agreement or other contract to the
contrary, at any time to terminate such services or to increase or decrease the compensation of the
Participant from the rate in existence at the time of the grant of an Award. Whether an authorized
leave of absence, or absence in military or government service, shall constitute a termination of
service shall be determined by the Committee at the time.

     12.2 Nontransferability. Except as provided otherwise at the time of grant or
thereafter, no right or interest of any Participant in an Option, a Stock Appreciation Right, a
Restricted Stock Award (prior to the completion of the restriction period applicable thereto), or
other Award granted pursuant to the Plan, shall be assignable or transferable during the lifetime
of the Participant, either voluntarily or involuntarily, or subjected to any lien, directly or
indirectly, by operation of law, or otherwise, including execution, levy, garnishment, attachment,
pledge or bankruptcy. In the event of a Participant’s death, a Participant’s rights and interests
in Options, Stock Appreciation Rights, Restricted Stock Awards, and other Awards, shall, to the
extent provided in Articles VII, VIII, IX, and X, be transferable by will or the laws of descent
and distribution, and payment of any amounts due under the Plan shall be made to, and exercise of
any Options may be made by, the Participant’s legal representatives, heirs or legatees.
Notwithstanding the foregoing, the Option Holder may not transfer an Incentive Option during the
Option Holder’s lifetime. If in the opinion of the Committee a person entitled to payments or to
exercise rights with respect to the Plan is disabled from caring for his affairs because of mental
condition, physical condition or age, payment due such person may be made to, and such rights shall
be exercised by, such person’s guardian, conservator or other legal personal representative upon
furnishing the Committee with evidence satisfactory to the Committee of such status.

     12.3 No Plan Funding. Obligations to Participants under the Plan will not be funded,
trusteed, insured or secured in any manner. The Participants under the Plan shall have no security
interest in any assets of the Company, and shall be only general creditors of the Company.

Silicon Mountain Memory, Incorporated 2003 Equity Incentive Plan

15

 

ARTICLE XIII

GENERAL RESTRICTIONS

     13.1 Investment Representations. The Company may require any person to whom an
Option, Stock Appreciation Rights, Restricted Stock Award, or Stock Bonus is granted, as a
condition of exercising such Option or Stock Appreciation Right, or receiving such Restricted Stock
Award, or Stock Bonus, to give written assurances in substance and form satisfactory to the Company
and its counsel to the effect that such person is acquiring the Stock for his own account for
investment and not with any present intention of selling or otherwise distributing the same, and to
such other effects as the Company deems necessary or appropriate in order to comply with Federal
and applicable state securities laws. Legends evidencing such restrictions may be placed on the
Stock certificates.

     13.2 Compliance with Securities Laws. Each Option, Stock Appreciation Right,
Restricted Stock Award, and Stock Bonus grant shall be subject to the requirement that, if at any
time counsel to the Company shall determine that the listing, registration or qualification of the
shares subject to such Option, Stock Appreciation Right, Restricted Stock Award, or Stock Bonus
grant upon any securities exchange or under any state or federal law, or the consent or approval of
any governmental or regulatory body, is necessary as a condition of, or in connection with, the
issuance or purchase of shares thereunder, such Option, Stock Appreciation Right, Restricted Stock
Award, or Stock Bonus grant may not be accepted or exercised in whole or in part unless such
listing, registration, qualification, consent or approval shall have been effected or obtained on
conditions acceptable to the Committee. Nothing herein shall be deemed to require the Company to
apply for or to obtain such listing, registration or qualification.

     13.3 Changes in Accounting Rules. Except as provided otherwise at the time an Award
is granted, notwithstanding any other provision of the Plan to the contrary, if, during the term of
the Plan, any changes in the financial or tax accounting rules applicable to Options, Stock
Appreciation Rights, Restricted Stock Awards, or other Awards shall occur which, in the sole
judgment of the Committee, may have a material adverse effect on the reported earnings, assets or
liabilities of the Company, the Committee shall have the right and power to modify as necessary,
any then outstanding and unexercised Options, Stock Appreciation Rights, outstanding Restricted
Stock Awards, and other outstanding Awards as to which the applicable services or other
restrictions have not been satisfied.

Silicon Mountain Memory, Incorporated 2003 Equity Incentive Plan

16

 

ARTICLE XIV

OTHER EMPLOYEE BENEFITS

     The amount of any compensation deemed to be received by a Participant as a result of the
exercise of an Option or Stock Appreciation Right, the sale of shares received upon such exercise,
the vesting of any Restricted Stock Award, receipt of Stock Bonuses, or the grant of Stock shall
not constitute “earnings” or “compensation” with respect to which any other employee benefits of
such employee are determined, including without limitation benefits under any pension, profit
sharing, 401 (k), life insurance or salary continuation plan.

ARTICLE XV

PLAN AMENDMENT, MODIFICATION AND TERMINATION

     The Board may at any time terminate, and from time to time may amend or modify the Plan
provided, however, that no amendment or modification may become effective without approval of the
amendment or modification by the shareholders if shareholder approval is required to enable the
Plan to satisfy any applicable statutory or regulatory requirements, or if the Company, on the
advice of counsel, determines that shareholder approval is otherwise necessary or desirable.

     No amendment, modification or termination of the Plan shall in any manner adversely affect any
Options, Stock Appreciation Rights, Restricted Stock Awards, Stock Bonuses or other Award
theretofore granted under the Plan, without the consent of the Participant holding such Options,
Stock Appreciation Rights, Restricted Stock Awards, Stock Bonuses or other Awards.

ARTICLE XVI

WITHHOLDING

     16.1 Withholding Requirements. The Company’s obligations to deliver shares of Stock
upon the exercise of any Option, or Stock Appreciation Right, the vesting of any Restricted Stock
Award, or the grant of Stock shall be subject to the Participant’s satisfaction of all applicable
federal, state and local income and other tax withholding requirements.

     16.2 Withholding With Stock. At the time the Committee grants an Option, Stock
Appreciation Rights, Restricted Stock Award, Stock Bonus, other Award, or Stock or at any time
thereafter, it may, in its sole discretion, grant the Participant an election to pay all such
amounts of tax withholding, or any part thereof, by electing (a) to have the Company withhold from
shares otherwise issuable to the Participant, shares of Stock having a value equal to the amount
required to be withheld or such lesser amount as may be elected by the Participant; provided
however, that the amount of Stock so withheld shall not exceed the minimum amount required to

Silicon Mountain Memory, Incorporated 2003 Equity Incentive Plan

17

 

be withheld under the method of withholding that results in the smallest amount of withholding, or
(b) to transfer to the Company a number of shares of Stock that were acquired by the Participant
more than six months prior to the transfer to the Company and that have a value equal to the amount
required to be withheld or such lesser amount as may be elected by the Participant. All elections
shall be subject to the approval or disapproval of the Committee. The value of shares of Stock to
be withheld shall be based on the Fair Market Value of the Stock on the date that the amount to be
withheld is to be determined (the “Tax Date”). Any such elections by Participants to have shares
of Stock withheld for this purpose will be subject to the following restrictions: (a) all
elections must be made prior to the Tax Date; (b) all elections shall be irrevocable.

ARTICLE XVII

REQUIREMENTS OF LAW

     17.1 Requirements of Law. The issuance of Stock and the payment of cash pursuant to
the Plan shall be subject to all applicable law, rules and regulations.

     17.2 Governing Law. The Plan and all agreements hereunder shall be construed in
accordance with and governed by the laws of the State of Colorado.

ARTICLE XVIII

DURATION OF THE PLAN

     Unless sooner terminated by the Board of Directors, the Plan shall terminate at the close of
business on October 28, 2013, and no Option, Stock Appreciation Right, Restricted Stock Award,
Stock Bonus, other Award or Stock shall be granted, or offer to purchase Stock made, after such
termination. Options, Stock Appreciation Rights, Restricted Stock Awards, and other Awards,
outstanding at the time of the Plan termination may continue to be exercised, or become free of
restrictions, or paid, in accordance with their terms.

	 	 	 	 	 	 	 	 	 
	Dated:	 	 	 	 	 	Silicon Mountain Memory, Incorporated
	 	 	 	 	 	 	a Colorado Corporation
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 	 	 

Silicon Mountain Memory, Incorporated 2003 Equity Incentive Plan

18exv10w12

 

EXHIBIT 10.12

	 	 	 	 	 
	 
	OPTION CERTIFICATE NO:

	 	 	 	 	 
	 	 	 	 	 
	 	 	 

	 	 
	 

STOCK OPTION AGREEMENT

OF

SILICON MOUNTAIN MEMORY INCORPORATED

     Silicon Mountain Memory Incorporated, (the “Company”), desiring to afford an opportunity to
the Option Holder named below to purchase certain shares of the Company’s common stock, $.01 (one
cent) par value, to provide the Option Holder with an added incentive as an employee of the
Company, hereby grants to the Option Holder, and the Option Holder hereby accepts, an option to
purchase the number of such shares specified below, during a term ending at midnight (prevailing
local time at the Company’s principal offices) on the expiration date of this Option specified
below (“Option Period”), at the option exercise price specified below, which is the Fair Market
Value per share of the Company common shares on the date of this Agreement, subject to and upon the
following terms and conditions:

	 	1.	 	IDENTIFYING PROVISIONS:

               As used in this Option Agreement, the following terms shall have the following respective
meanings:

	 	a.	 	Option Holder:
	 
	 	b.	 	Date of Grant:
	 
	 	c.	 	Number of Shares Optioned:
	 
	 	d.	 	Option Exercise Price Per Share:
	 
	 	e.	 	Expiration Date:

CHECK ONE:

	 	o	 	This Option is intended to be and shall be treated as an incentive
stock option under Section 422 of the Internal Revenue Code.
	 
	 	o	 	This Option is not intended to be and shall not be treated as an
incentive stock option under Section 422 of the Internal Revenue Code.

Form of Stock Option Agreement for 2003 Equity Incentive Plan

 

 

	 	2.	 	VESTING SCHEDULE AND FORFEITURE
	 
	 	 	 	This Option shall become exercisable in installments as follows:
	 
	 	3.	 	RESTRICTIONS ON TRANSFERABILITY OF OPTION

               This Option may not be assigned or transferred by the Option Holder other than by will or the
laws of descent and distribution and may be exercised during the Option Holder’s lifetime only by
the Option Holder or the Option Holder’s guardian or legal representative. Except as otherwise
provided herein, the Option and all rights granted under this Agreement shall not be transferred,
assigned, pledged, or hypothecated in any way (whether by operation of law or otherwise), and shall
not be subject to execution, levy, garnishment, attachment, pledge, bankruptcy, or similar process.
Upon any such attempt to transfer, assign, pledge, hypothecate, or otherwise dispose of such
option or of such rights contrary to the provisions in this Agreement, or upon the levy of any
attachment or similar process upon such rights, such Option and such rights shall immediately
become null and void.

	 	4.	 	REQUIREMENTS BY LAW

               By accepting this Option, the Option Holder represents and agrees for himself or herself and
his or her transferees by will or the laws of descent and distribution that, unless a registration
statement under the Securities Act of 1933 is in effect as to shares purchased upon any exercise
of this Option, (a) any and all shares so purchased shall be acquired for his or her personal
account and not with a view to or for sale in connection with any distribution, and (b) each notice
of the exercise of any portion of this Option shall be accompanied by a representation and warranty
in writing, signed by the person entitled to exercise the same, that the shares are being so
acquired in good faith for his or her personal account and not with a view to or for sale in
connection with any distribution.

               No certificate or certificates for shares of stock purchased upon exercise of this Option
shall be issued or delivered unless and until, in the opinion of legal counsel for the Company,
such securities may be issued and delivered without causing the Company to be in violation of or
incur any liability under any federal, state or other securities law or any other requirement of
law or of any regulatory body having jurisdiction over the Company.

	 	5.	 	STOCK TRANSFER RESTRICTION AGREEMENT

               By accepting this Option, the Option Holder represents and agrees for himself or herself, and
his or her transferees by will or the laws of descent and distribution, that no

Form of Stock Option Agreement for 2003 Equity Incentive Plan

 

 

certificate or certificates for Shares of Stock purchased upon exercise of this Option shall be issued or
delivered unless and until the Option Holder agrees to and executes any and all Stock Transfer
Restriction Agreements which the Company then requires, and further complies with all the
provisions and requirements thereof.

	 	6.	 	STOCK OPTION PLAN

     This Option is subject to, and the Company and the Option Holder agrees to be bound by, all of
the terms and conditions of the Company’s 2003 Equity Incentive Plan under which this Option was
granted, as the same may have been amended from time to time in accordance with its terms, provided
that no such amendment shall deprive the Option Holder, without the Option Holder’s consent, of
this Option or of any rights hereunder. Pursuant to said plan, the Board of Directors of the
Company or its Committee established for such purposes is vested with conclusive authority to
interpret and construe the Plan and this Option, and is authorized to adopt rules and regulations
for carrying out the Plan. A copy of the Plan in its present form is attached hereto, incorporated
herein, and available for inspection during business hours by the Option Holder or other persons
entitled to exercise this Option at the Company’s principal office.

	 	7.	 	NOTICES

               Any notice to be given to the Company shall be addressed to the Company in care of its
Secretary at its principal office, and to corporate counsel, Alan Talesnick, PATTON & BOGGS, 1801
California St, Denver, Colorado 80202, and any notice to be given to the Option Holder shall be
addressed to the Option Holder at the address set forth beneath the Option Holder’s signature
hereto or at such other address as the Option Holder may hereafter designate in writing to the
Company. Any such notice shall be deemed duly given when enclosed in a properly sealed envelope or
wrapper addressed as aforesaid, registered or certified, and deposited, postage and registry or
certification fees prepaid, in a post office or branch post office regularly maintained by the
United States Postal Service.

	 	8.	 	RULES OF CONSTRUCTION

               This Agreement has been executed and delivered by the Company in Colorado and shall be
construed and enforced in accordance with the laws of said State, other than any choice of law
rules calling for the application of laws of another jurisdiction. Should there be any
inconsistency or discrepancy between the provisions of this Option and the terms and conditions of
the Company’s 2003 Equity Incentive Plan under which this Option is granted, the provisions in the
Plan shall govern and prevail. The receipt of this Option does not give the Option Holder any
right to continue employment by the Company or a subsidiary for any period, nor shall the granting
of this Option or the issuance of shares on exercise thereof give the Company or any subsidiary any
right to the continued services of the Option Holder for any period.

Form of Stock Option Agreement for 2003 Equity Incentive Plan

 

 

     IN WITNESS WHEREOF, the Company has granted this Option on the date of grant specified above.

SILICON MOUNTAIN MEMORY INCORPORATED

	 	 	 
	By:
	 	 
	 

	 	President

Corporate Seal

Attest:

Secretary

	 
	OPTION HOLDER

	 

	 

	 

	 

Form of Stock Option Agreement for 2003 Equity Incentive Plan

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]