Document:

Form of Restricted Stock Unit Award Agreement -1999 Stock Incentive Plan

 Exhibit 10.2 
 QUEST SOFTWARE, INC. 
 RESTRICTED
STOCK UNIT GRANT NOTICE 
 (1999 STOCK
INCENTIVE PLAN) 
 Quest Software, Inc. (the “Corporation”), pursuant to the Corporation’s
1999 Stock Incentive Plan (the “Plan”) and the Corporation’s Executive Incentive Plan (the “Executive Plan”), hereby grants to Participant a Restricted Stock Unit Award covering the number of
restricted stock units (the “Restricted Stock Units”) set forth below (the “Award”). This Award shall be evidenced by this Restricted Stock Unit Grant Notice (the “Grant
Notice”) and the Restricted Stock Unit Award Agreement attached hereto (the “Agreement”). This Award is subject to all of the terms and conditions as set forth herein, the Agreement, the Plan, and the Executive
Plan, each of which is attached hereto. 
  

			
	 Participant:
	  	____________________________________________________
	 Date of Grant:
	  	____________________________________________________
	 Vesting Commencement Date:
	  	____________________________________________________
	 Number of Restricted Stock Units:
	  	____________________________________________________
	 Payment for Common Stock:
	  	Participant’s past services to the Corporation

 Vesting Schedule: The Restricted Stock Units shall vest with respect to: (i) 33.3% of the Restricted
Stock Units on the first anniversary of the Vesting Commencement Date, (ii) 33.3% of the Restricted Stock Units on the second anniversary of the Vesting Commencement Date, and (iii) the balance of the Restricted Stock Units on the third
anniversary of the Vesting Commencement Date. 
 Delivery Schedule: Delivery of one share of Common Stock for each Restricted Stock Unit which vests
shall occur on the applicable vesting date, provided that delivery may be delayed as provided in Section 3 of the Agreement. 
 Additional
Terms/Acknowledgements: Participant acknowledges receipt of, and understands and agrees to, this Grant Notice, the Agreement, the Plan, and the Executive Plan. Participant acknowledges that this Award has been granted only after the shareholders
of the Company have approved the Executive Plan at the Corporation’s 2008 Annual Meeting of Shareholders. Participant finally acknowledges that as of the Date of Grant, this Grant Notice, the Agreement, the Plan, and the Executive Plan set
forth the entire understanding between Participant and the Corporation regarding the award of the Restricted Stock Units and the underlying Common Stock and supersede all prior oral and written agreements on that subject. 
  

									
	QUEST SOFTWARE, INC.	 		 	PARTICIPANT
					
	By:	 	 	 		 		 	 
		 	Signature	 		 		 	Signature
					
	Title:	 	 	 		 	Date:	 	 
		 		 		 		 	
					
	Date:	 	 	 		 		 	 
		 		 		 		 	
	ATTACHMENTS: Agreement, the Plan, and the Executive Plan	 		 		 	

 QUEST SOFTWARE, INC. 
 1999 STOCK INCENTIVE PLAN 
 RESTRICTED STOCK UNIT AWARD AGREEMENT 
 Pursuant to the Restricted Stock Unit Grant Notice (“Grant Notice”) and this Restricted Stock Unit Award Agreement (“Agreement”), Quest Software, Inc. (the
“Corporation”) has awarded you a Restricted Stock Unit Award pursuant to the Corporation’s 1999 Stock Incentive Plan (the “Plan”) and the Corporation’s Executive Incentive Plan (the
“Executive Plan”), for the number of Restricted Stock Units as indicated in the Grant Notice (collectively, the “Award”). Defined terms not explicitly defined in this Agreement but defined in the Plan
shall have the same definitions as in the Plan. Subject to adjustment and the terms and conditions as provided herein and in the Plan, each Restricted Stock Unit shall represent the right to receive one (1) share of Common Stock. 
 The details of your Award, in addition to those set forth in the Grant Notice, are as follows. 
 1. NUMBER OF RESTRICTED STOCK UNITS AND
SHARES OF COMMON STOCK. 
 (a) Should any change be
made to the Common Stock subject to your Award by reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of shares, or other change affecting the outstanding Common Stock as a class without the
Corporation’s receipt of consideration, the Board shall appropriately and proportionally adjust the total number and/or class of securities issuable hereunder and the number and/or class of securities that vest on each vesting date pursuant to
the Vesting Schedule set forth in your Grant Notice. 
 (b) Any additional Restricted Stock Units, shares of Common
Stock, cash or other property that becomes subject to the Award pursuant to this Section 1 shall be subject, in a manner determined by the Board, to the same forfeiture restrictions, restrictions on transferability, and time and manner of
delivery as applicable to the other Restricted Stock Units and Common Stock covered by your Award. 
 (c)
Notwithstanding the provisions of this Section 1, no fractional Restricted Stock Units or rights for fractional shares of Common Stock shall be created pursuant to this Section 1. The Board shall, in its discretion, determine an equivalent
benefit for any fractional Restricted Stock Units or fractional shares that might be created by the adjustments referred to in this Section 1. 
 2. VESTING. The Restricted Stock Units shall vest, if at all, as provided in the Vesting Schedule set forth in your Grant Notice and the Plan, provided that vesting shall cease upon the
termination of your Continuous Service. 
 3. DELIVERY OF SHARES OF
COMMON STOCK. 
 (a) Subject to the provisions of this Agreement and
the Plan, in the event one or more Restricted Stock Units vests, the Corporation shall deliver to you one (1) share of Common Stock for each Restricted Stock Unit that vests on the applicable vesting date. 

 
However, if a scheduled delivery date falls on a date that is not a business day, such delivery date shall instead fall on the next following business day.
The form of such delivery (e.g., a stock certificate or electronic entry evidencing such shares) shall be determined by the Corporation. 
 (b) Notwithstanding the foregoing, in the event that you are subject to the Corporation’s Insider Trading Policy and any shares covered by your Award are scheduled to be delivered on a day (the
“Original Delivery Date”) that does not occur during a “window period” applicable to you, as determined by the Corporation in accordance with such policy, then such shares shall not be delivered on such Original
Delivery Date and shall instead be delivered on the first business day of the next occurring “window period” applicable to you but in no event later than the later of: (i) December 31st of the calendar year of the Original
Delivery Date, or (ii) the fifteenth (15th) day of the third calendar month following the Original Delivery Date. 
 4.
PAYMENT BY YOU. This Award was granted in consideration of your past services for the Corporation. Subject to Section 13 below, except as otherwise provided in the Grant Notice,
you will not be required to make any payment to the Corporation (other than your services for the Corporation) with respect to your receipt of the Award, vesting of the Restricted Stock Units, or the delivery of the shares of Common Stock underlying
the Restricted Stock Units. 
 5. DETRIMENTAL ACTIVITIES. 
 (a) If, at any time within the later of (i) twelve (12) months after you cease to remain in Service, or (ii) within
twelve (12) months after you are delivered any shares of Common Stock pursuant to Section 3 of this Award, you engage in any Detrimental Activity (as defined below) then the Corporation may rescind this Award, in which case you shall pay
to the Corporation or forfeit the amount of any Stock Gain (as defined below) realized or payment received as a result of this Award. 
 (b) For purposes of this Agreement, “Detrimental Activity” includes: (i) engaging or participating, directly or indirectly, in any business that is in competition with or adverse to
the business of the Corporation in any manner whatsoever; (ii) soliciting or otherwise inducing the Corporation’s employees to leave the Corporation’s business or employ; or (iii) any other act of Misconduct (as such term is
defined in the Plan); and “Stock Gain” means an amount equal to the aggregate Fair Market Value of the shares of Common Stock delivered to your pursuant to Section 3 as well as any shares of Common Stock held back to
satisfy applicable federal and state withholding taxes pursuant to Section 13, without regard to any subsequent decrease or increase in the Fair Market Value of the shares of Common Stock. 
 6. SECURITIES LAW COMPLIANCE. You may not be issued any Common Stock under your
Award unless either (i) the shares of Common Stock are then registered under the Securities Act of 1933, as amended (the “Securities Act”), or (ii) the Corporation has determined that such issuance would be exempt
from the registration requirements of the Securities Act. Your Award must also comply with other applicable laws and regulations governing the Award, and you shall not receive such Common Stock if the Corporation determines that such receipt would
not be in material compliance with such laws and regulations. 
  

 2. 

 7. RESTRICTIVE LEGENDS. The Common Stock issued under your
Award shall be endorsed with appropriate legends, if any, determined by the Corporation. 
 8. TRANSFER
RESTRICTIONS. Prior to the time that shares of Common Stock have been delivered to you, you may not transfer, pledge, sell or otherwise dispose of the shares in respect of your Award. For example, you may not use shares that may
be issued in respect of your Restricted Stock Units as security for a loan, nor may you transfer, pledge, sell or otherwise dispose of such shares. This restriction on transfer will lapse upon delivery to you of shares in respect of your vested
Restricted Stock Units. Your Award is not transferable, except by will or by the laws of descent and distribution. Notwithstanding the foregoing, by delivering written notice to the Corporation, in a form satisfactory to the Corporation, you may
designate a third party who, in the event of your death, shall thereafter be entitled to receive any distribution of Common Stock to which you were entitled at the time of your death pursuant to this Agreement. 
 9. CHANGE IN CONTROL. 
 (a) Should a Change in Control occur during your period of Service, then any Restricted Stock Units at the time subject to your
Award may be assumed by the successor Corporation (or parent thereof) or otherwise continue in full force and effect or may be replaced with a cash incentive program of the successor corporation (or parent thereof) which preserves the Fair Market
Value of any shares of Common Stock underlying your Award at the time of the Change in Control and provides for subsequent payout of that value in accordance with the Vesting Schedule set forth in your Grant Notice. No accelerated vesting of the
Restricted Stock Units shall occur in the event of such assumption or continuation of your Award or such replacement of the Award with a cash incentive program. 
 (b) In the event your Award is assumed in connection with a Change in Control or otherwise continued in effect, the Restricted
Stock Units at the time subject to your Award shall be appropriately adjusted immediately after the consummation of such Change in Control so as to apply to the number and class of securities into which the shares of Common Stock subject to your
Restricted Stock Units immediately prior to the Change in Control would have been converted in consummation of the Change in Control had those shares of Common Stock actually been outstanding at that time, and appropriate adjustments shall also be
made to the cash consideration (if any) payable per share thereunder, provided the aggregate amount of such consideration shall remain the same. To the extent the holders of the outstanding Common Stock receive cash consideration for their Common
Stock in the Change in Control, the successor corporation (or parent thereof) may, in connection with the assumption or continuation of the Restricted Stock Units subject to your Award, substitute one or more shares of its own common stock with a
fair market value equivalent to the cash consideration paid per share of Common Stock in the Change in Control. 
 (c)
If the Restricted Stock Units subject to your Award are not assumed or otherwise continued in effect under Sections 9(a) and 9(b) or replaced with a cash incentive program under Section 9(a), then those Restricted Stock Units will vest
immediately prior to the consummation of the Change in Control. The shares of Common Stock subject to those vested Restricted Stock Units will be issued promptly to you pursuant to Section 3 (or otherwise converted into the right to receive the
same consideration per share of Common Stock payable to the other shareholders of the Corporation in the Change in Control), subject to the Corporation’s collection of all applicable federal and state withholding taxes pursuant to
Section 13. 
  

 3. 

 10. PARACHUTE PAYMENTS. 
 (a) If any payment or benefit you would receive in connection with a Change in Control from the Corporation or otherwise
(“Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the
Code (the “Excise Tax”), then the Corporation shall cause to be determined, before any amounts of the Payment are paid to you, which of the following two alternative forms of payment would maximize your after-tax proceeds:
(i) payment in full of the entire amount of the Payment (a “Full Payment”), or (ii) payment of only a part of the Payment so that you receive the largest payment possible without the imposition of the Excise Tax (a
“Reduced Payment”), whichever amount results in your receipt, on an after-tax basis, of the greater amount of the Payment notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. For purposes
of determining whether to make a Full Payment or a Reduced Payment, the Corporation shall cause to be taken into account all applicable federal, state and local income and employment taxes and the Excise Tax (all computed at the highest applicable
marginal rate, net of the maximum reduction in federal income taxes which could be obtained from a deduction of such state and local taxes). 
 (b) If a Reduced Payment is made, (i) the Payment shall be paid only to the extent permitted under the Reduced Payment alternative, and you shall have no rights to any additional payments and/or benefits
constituting the Payment, and (ii) reduction in payments and/or benefits shall occur in the following order unless you elect in writing a different order (provided, however, that such election shall be subject to Corporation approval if made on
or after the date on which the event that triggers the Payment occurs): (1) reduction of cash payments; (2) cancellation of accelerated vesting of equity awards other than stock options; (3) cancellation of accelerated vesting of
stock options; and (4) reduction of other benefits paid to you. In the event that acceleration of compensation from your equity awards is to be reduced, such acceleration of vesting shall be canceled in the reverse order of the date of grant
(i.e., earliest granted Stock Award cancelled last) unless you elect in writing a different order for cancellation. 
 (c) The accounting firm engaged by the Corporation for general tax purposes as of the day prior to the effective date of the Change in Control shall perform the foregoing calculations. If the accounting firm so engaged by the
Corporation is serving as accountant or auditor for the individual, entity or group effecting the Change in Control, the Corporation shall appoint a nationally recognized accounting firm to make the determinations required hereunder. The Corporation
shall bear all expenses with respect to the determinations by such accounting firm required to be made hereunder. 
 (d) The accounting firm engaged to make the determinations hereunder shall provide its calculations, together with detailed supporting documentation, to you and the Corporation within fifteen (15) calendar days after the date on
which your right to a Payment is triggered (if requested at that time by you or the Corporation) or such other time as requested by you or the Corporation. If the accounting firm determines that no Excise Tax is payable with 

  

 4. 

 
respect to a Payment, either before or after the application of the Reduced Amount, it shall furnish you and the Corporation with an opinion reasonably
acceptable to you that no Excise Tax will be imposed with respect to such Payment. Any good faith determinations of the accounting firm made hereunder shall be final, binding and conclusive upon you and the Corporation. 
 11. AWARD NOT A SERVICE CONTRACT. Your Award is
not an employment or service contract, and nothing in your Award shall be deemed to create in any way whatsoever any obligation on your part to continue in the service of the Corporation, a Parent, or a Subsidiary, or on the part of the Corporation,
a Parent, or a Subsidiary to continue such service. In addition, nothing in your Award shall obligate the Corporation or any Affiliate, their respective shareholders, boards of directors or employees to continue any relationship that you might have
as an Employee, consultant, or a non-employee member of board of directors of the Corporation, a Parent, or a Subsidiary. 
 12.
UNSECURED OBLIGATION. Your Award is unfunded, and even as to any Restricted Stock Units which vest, you shall be considered an unsecured creditor of the Corporation with respect to the
Corporation’s obligation, if any, to issue Common Stock pursuant to this Agreement. You shall not have voting or any other rights as a shareholder of the Corporation with respect to the Common Stock acquired pursuant to this Agreement until
such Common Stock is issued to you pursuant to Section 3 of this Agreement. Upon such issuance, you will obtain full voting and other rights as a shareholder of the Corporation with respect to the Common Stock so issued. Nothing contained in
this Agreement, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind or a fiduciary relationship between you and the Corporation or any other person. 
 13. WITHHOLDING OBLIGATIONS. 
 (a) On or before the time you receive a distribution of Common Stock pursuant to your Award, or at any time thereafter as requested
by the Corporation, you hereby authorize any required withholding from the Common Stock issuable to you and otherwise agree to make adequate provision in cash for any sums required to satisfy the federal, state, local and foreign tax withholding
obligations of the Corporation, a Parent, or a Subsidiary which arise in connection with your Award (the “Withholding Taxes”). If expressly permitted by the Corporation, you may direct the Corporation to withhold shares of
Common Stock with a Fair Market Value (measured as of the date shares of Common Stock are delivered pursuant to Section 3) equal to the amount of such Withholding Taxes; provided, however, that the number of such shares of Common Stock
so withheld shall not exceed the amount necessary to satisfy the Corporation’s required tax withholding obligations using the minimum statutory withholding rates for federal, state, local and foreign tax purposes, including payroll taxes, that
are applicable to supplemental taxable income. 
 (b) Unless the tax withholding obligations of the Corporation, a
Parent, or a Subsidiary are satisfied, the Corporation shall have no obligation to deliver to you any Common Stock. 
  

 5. 

 (c) In the event the Corporation’s obligation to withhold arises prior to the
delivery to you of Common Stock or it is determined after the delivery of Common Stock to you that the amount of the Corporation’s withholding obligation was greater than the amount withheld by the Corporation, you agree to indemnify and hold
the Corporation harmless from any failure by the Corporation to withhold the proper amount. 
 14.
NOTICES. Any notices required to be given or delivered to the Corporation under the terms of this Award shall be in writing and addressed to the Corporation at its principal corporate offices. Any notice required
to be given or delivered to you shall be in writing and addressed to your address as on file with the Corporation at the time notice is given. All notices shall be deemed effective upon personal delivery or upon deposit in the U.S. mail, postage
prepaid and properly addressed to the party to be notified. 
 15. HEADINGS. The headings of the Sections in
this Agreement are inserted for convenience only and shall not be deemed to constitute a part of this Agreement or to affect the meaning of this Agreement. 
 16. AMENDMENT. This Agreement may be amended only by a writing executed by the Corporation and you which specifically states that it is amending this Agreement. Notwithstanding the
foregoing, this Agreement may be amended solely by the Corporation by a writing which specifically states that it is amending this Agreement, so long as a copy of such amendment is delivered to you, and provided that no such amendment adversely
affecting your rights hereunder may be made without your written consent. Without limiting the foregoing, the Corporation reserves the right to change, by written notice to you, the provisions of this Agreement in any way it may deem necessary or
advisable to carry out the purpose of the grant as a result of any change in applicable laws or regulations or any future law, regulation, ruling, or judicial decision, provided that any such change shall be applicable only to rights relating to
that portion of the Award which has not been delivered to you in Common Stock pursuant to Section 3. 
 17.
MISCELLANEOUS. 
 (a) The rights and obligations of the Corporation under your Award shall be
transferable by the Corporation to any one or more persons or entities, and all covenants and agreements hereunder shall inure to the benefit of, and be enforceable by the Corporation’s successors and assigns. 
 (b) You agree upon request to execute any further documents or instruments necessary or desirable in the sole determination of the
Corporation to carry out the purposes or intent of your Award. 
 (c) You acknowledge and agree that you have reviewed
your Award in its entirety, have had an opportunity to obtain the advice of counsel prior to executing and accepting your Award and fully understand all provisions of your Award. 
 (d) This Agreement shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental
agencies or national securities exchanges as may be required. 
  

 6. 

 (e) All obligations of the Corporation under the Plan and this Agreement shall be
binding on any successor to the Corporation, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Corporation.

 18. GOVERNING PLAN DOCUMENT. Your Award is subject to all the
provisions of the Plan, the provisions of which are hereby made a part of your Award, and is further subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the Plan. The
Corporation shall have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation, and application of the Plan as are consistent therewith and to interpret or revoke any such rules. All actions
taken and all interpretations and determinations made by the Board shall be final and binding upon you, the Corporation, and all other interested persons. No member of the Board shall be personally liable for any action, determination, or
interpretation made in good faith with respect to the Plan or this Agreement. 
 19. EFFECT ON
OTHER EMPLOYEE BENEFIT PLANS. The value of the Award subject to this Agreement shall not be included as compensation, earnings, salaries, or other similar terms used when calculating
benefits under any employee benefit plan (other than the Plan and the Executive Plan) sponsored by the Corporation, a Parent, or a Subsidiary except as such plans otherwise expressly provide. The Corporation expressly reserves its rights to amend,
modify, or terminate any or all of the employee benefit plans of the Corporation, a Parent, or a Subsidiary. 
 20.
CHOICE OF LAW. The interpretation, performance and enforcement of this Agreement shall be governed by the law of the state of California without regard to such state’s conflicts of laws rules.

 21. SEVERABILITY. If all or any part of this Agreement or the Plan is declared by any court or governmental
authority to be unlawful or invalid, such unlawfulness or invalidity shall not invalidate any portion of this Agreement or the Plan not declared to be unlawful or invalid. Any Section of this Agreement (or part of such a Section) so declared to be
unlawful or invalid shall, if possible, be construed in a manner which will give effect to the terms of such Section or part of a Section to the fullest extent possible while remaining lawful and valid. 
 22. OTHER DOCUMENTS. You hereby acknowledge receipt or the right to receive a prospectus providing the
information required by Rule 428(b)(1) promulgated under the Securities Act. In addition, you acknowledge receipt of the Corporation’s Insider Trading Policy. 
 * * * * * 
 This Restricted Stock Unit Award Agreement shall be deemed to be signed by the Corporation and
you upon the signing by you of the Restricted Stock Unit Grant Notice to which it is attached. 
  

 7.Registrant's 2001 Stock Incentive Plan, as amended

 Exhibit 10.3 
 QUEST SOFTWARE, INC. 
 2001 STOCK INCENTIVE PLAN 
 ARTICLE ONE 
 GENERAL PROVISIONS

  

	I.	PURPOSE OF THE PLAN 

 This 2001 Stock Incentive Plan
is intended to promote the interests of Quest Software, Inc., a California corporation, by providing eligible persons with the opportunity to acquire a proprietary interest, or otherwise increase their proprietary interest, in the Corporation as an
incentive for them to remain in the service of the Corporation. Capitalized terms shall have the meanings assigned to such terms in the attached Appendix. 
  

	II.	STRUCTURE OF THE PLAN 

 The Plan shall be divided
into two separate equity programs: (i) the Discretionary Option Grant Program under which eligible persons may, at the discretion of the Plan Administrator, be granted options to purchase shares of Common Stock; and (ii) the Stock Issuance
Program under which eligible persons may, at the discretion of the Plan Administrator, be issued shares of Common Stock directly, either through the immediate purchase of such shares or as a bonus for services rendered the Corporation (or any Parent
or Subsidiary). The provisions of Articles One and Four shall apply to all equity programs under the Plan and shall govern the interests of all persons under the Plan. 
  

	III.	ADMINISTRATION OF THE PLAN 

 A. The following
provisions shall govern the administration of the Plan: 
 (i) The Board shall have the authority to administer the
Discretionary Option Grant and Stock Issuance Programs with respect to Section 16 Insiders but may delegate such authority in whole or in part to the Primary Committee. 
 (ii) Administration of the Discretionary Option Grant and Stock Issuance Programs with respect to all other persons eligible to
participate in those programs may, at the Board’s discretion, be vested in the Primary Committee or a Secondary Committee, or the Board may retain the power to administer those programs with respect to all such persons. 
 B. Each Plan Administrator shall, within the scope of its administrative jurisdiction under the Plan, have full power and authority subject to the
provisions of the Plan: 
 (i) to establish such rules as it may deem appropriate for proper administration of the
Plan, to make all factual determinations, to construe and interpret the provisions of the Plan and the awards thereunder and to resolve any and all ambiguities thereunder; 
  

 1 

 (ii) to determine, with respect to awards made under the Discretionary Option
Grant and Stock Issuance Programs, which eligible persons are to receive such awards, the time or times when such awards are to be made, the number of shares to be covered by each such award, the vesting schedule (if any) applicable to the award,
the status of a granted option as either an Incentive Option or a Non-Statutory Option and the maximum term for which the option is to remain outstanding; 
 (iii) to amend, modify or cancel any outstanding award with the consent of the holder or accelerate the vesting of such award; and 
 (iv) to take such other discretionary actions as permitted pursuant to the terms of the applicable program. 
 Decisions of each Plan Administrator within the scope of its administrative functions under the Plan shall be final and binding on all parties. 
 C. Members of the Primary Committee or any Secondary Committee shall serve for such period of time as the Board may determine and may be removed
by the Board at any time. The Board may also at any time terminate the functions of any Secondary Committee and reassume all powers and authority previously delegated to such committee. 
 D. Service on the Primary Committee or the Secondary Committee shall constitute service as a Board member, and members of each such committee
shall accordingly be entitled to full indemnification and reimbursement as Board members for their service on such committee. No member of the Primary Committee or the Secondary Committee shall be liable for any act or omission made in good faith
with respect to the Plan or any options or stock issuances under the Plan. 
  

	IV.	ELIGIBILITY 

 The persons eligible to participate in the
Discretionary Option Grant and Stock Issuance Programs are: (i) Employees; (ii) non-employee members of the Board or the board of directors of any Parent or Subsidiary; and (iii) consultants and other independent advisors who provide
services to the Corporation (or any Parent or Subsidiary); provided, however, that prior to the Shareholder Approval Date, no officers or directors of the Corporation shall be eligible to participate in the Plan. 
  

	V.	STOCK SUBJECT TO THE PLAN 

 A. The stock
issuable under the Plan shall be shares of authorized but unissued or reacquired Common Stock, including shares repurchased by the Corporation on the open market. The maximum number of shares of Common Stock reserved for issuance over the term of
the Plan shall not exceed 5,000,000 shares. 
 B. No one person participating in the Plan may receive options, separately exercisable
stock appreciation rights and direct stock issuances for more than Two Hundred Fifty Thousand (250,000) shares of Common Stock in the aggregate per calendar year. 
  

 2 

 C. Shares of Common Stock subject to outstanding options shall be available for subsequent
issuance under the Plan to the extent those options expire, terminate or are cancelled for any reason prior to exercise in full. Unvested shares issued under the Plan and subsequently repurchased by the Corporation, at the original exercise or issue
price paid per share, pursuant to the Corporation’s repurchase rights under the Plan shall be added back to the number of shares of Common Stock reserved for issuance under the Plan and shall accordingly be available for reissuance through one
or more subsequent options or direct stock issuances under the Plan. However, should the exercise price of an option under the Plan be paid with shares of Common Stock or should shares of Common Stock otherwise issuable under the Plan be withheld by
the Corporation in satisfaction of the withholding taxes incurred in connection with the exercise of an option or the vesting of a stock issuance under the Plan, then the number of shares of Common Stock available for issuance under the Plan shall
be reduced by the gross number of shares for which the option is exercised or which vest under the stock issuance, and not by the net number of shares of Common Stock issued to the holder of such option or stock issuance. Shares of Common Stock
underlying one or more stock appreciation rights exercised under the Plan shall NOT be available for subsequent issuance. 
 D. If any
change is made to the Common Stock by reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of shares or other change affecting the outstanding Common Stock as a class without the Corporation’s receipt of
consideration, appropriate adjustments shall be made to (i) the maximum number and/or class of securities issuable under the Plan, (ii) the number and/or class of securities by which the share reserve is to increase each calendar year
pursuant to the automatic share increase provisions of the Plan, (iii) the number and/or class of securities for which any one person may be granted options, separately exercisable stock appreciation rights and direct stock issuances under the
Plan per calendar year, and (iv) the number and/or class of securities and the exercise price per share in effect under each outstanding option under the Plan. Such adjustments to the outstanding options are to be effected in a manner which
shall preclude the enlargement or dilution of rights and benefits under such options. The adjustments determined by the Plan Administrator shall be final, binding and conclusive. 
 ARTICLE TWO 
 DISCRETIONARY OPTION GRANT PROGRAM 
  

	I.	OPTION TERMS 

 Each option shall be evidenced by one
or more documents in the form approved by the Plan Administrator; provided, however, that each such document shall comply with the terms specified below. Each document evidencing an Incentive Option shall, in addition, be subject to the provisions
of the Plan applicable to such options. 
 A. EXERCISE PRICE. 
 1. The exercise price per share shall be fixed by the Plan Administrator at the time of the option grant, provided that the
exercise price per share shall not be less than one hundred percent (100%) of the Fair Market Value per share of Common Stock on the option grant date. 
  

 3 

 2. The exercise price shall become immediately due upon exercise of the option and
shall, subject to the provisions of Section II of Article Four and the documents evidencing the option, be payable in cash or check made payable to the Corporation. Should the Common Stock be registered under Section 12 of the 1934 Act at the
time the option is exercised, then the exercise price may also be paid as follows: 
 (i) shares of Common Stock held
for the requisite period necessary to avoid any additional charge to the Corporation’s earnings for financial reporting purposes and valued at Fair Market Value on the Exercise Date, or 
 (ii) to the extent the option is exercised for vested shares, through a special sale and remittance procedure pursuant to which the
Optionee shall concurrently provide irrevocable instructions to (a) a Corporation-approved brokerage firm to effect the immediate sale of the purchased shares and remit to the Corporation, out of the sale proceeds available on the settlement
date, sufficient funds to cover the aggregate exercise price payable for the purchased shares plus all applicable Federal, state and local income and employment taxes required to be withheld by the Corporation by reason of such exercise and
(b) the Corporation to deliver the certificates for the purchased shares directly to such brokerage firm in order to complete the sale. 
 Except to the extent such sale and remittance procedure is utilized, payment of the exercise price for the purchased shares must be made on the Exercise Date. 
 B. EXERCISE AND TERM OF OPTIONS. Each option shall be exercisable at such time or times, during such period and for such number of shares as shall be determined by the Plan Administrator and set forth in
the documents evidencing the option. However, no option shall have a term in excess of ten (10) years measured from the option grant date. 
 C. CESSATION OF SERVICE. 
 1. The following provisions shall govern the exercise of any options
outstanding at the time of the Optionee’s cessation of Service or death: 
 (i) Any option outstanding at the time
of the Optionee’s cessation of Service for any reason shall remain exercisable for such period of time thereafter as shall be determined by the Plan Administrator and set forth in the documents evidencing the option, but no such option shall be
exercisable after the expiration of the option term. 
 (ii) Any option exercisable in whole or in part by the Optionee
at the time of death may be subsequently exercised by his or her Beneficiary. 
 (iii) During the applicable
post-Service exercise period, the option may not be exercised in the aggregate for more than the number of vested shares for which the option is exercisable on the date of the Optionee’s cessation of Service. Upon the expiration of the
applicable exercise period or (if earlier) upon the expiration of the option term, the option shall terminate and cease to be outstanding for any vested shares for which the option has not been exercised. However, the option shall, immediately upon
the Optionee’s cessation of Service, terminate and cease to be outstanding to the extent the option is not otherwise at that time exercisable for vested shares. 
  

 4 

 (iv) Should the Optionee’s Service be terminated for Misconduct or should the
Optionee engage in Misconduct while his or her options are outstanding, then all such options shall terminate immediately and cease to be outstanding. 
 2. The Plan Administrator shall have complete discretion, exercisable either at the time an option is granted or at any time while the option remains outstanding: 
 (i) to extend the period of time for which the option is to remain exercisable following the Optionee’s cessation of Service
to such period of time as the Plan Administrator shall deem appropriate, but in no event beyond the expiration of the option term, and/or 
 (ii) to permit the option to be exercised, during the applicable post-Service exercise period, for one or more additional installments in which the Optionee would have vested had the Optionee continued in
Service. 
 D. SHAREHOLDER RIGHTS. The holder of an option shall have no shareholder rights with respect to the shares subject
to the option until such person shall have exercised the option, paid the exercise price and become a holder of record of the purchased shares. 
 E. REPURCHASE RIGHTS. The Plan Administrator shall have the discretion to grant options which are exercisable for unvested shares of Common Stock. Should the Optionee cease Service while holding such unvested shares, the
Corporation shall have the right to repurchase, at the exercise price paid per share, any or all of those unvested shares. The terms upon which such repurchase right shall be exercisable (including the period and procedure for exercise and the
appropriate vesting schedule for the purchased shares) shall be established by the Plan Administrator and set forth in the document evidencing such repurchase right. 
 F. VESTING. Options granted under the Plan to the Chief Executive Officer of the Company or Chairman of the Board of Directors shall be subject to a minimum vesting period and shall vest as follows: not
more than twenty percent (20%) of any shares of Common Stock subject to an option shall vest after the first year following the date of grant and not more than ten percent (10%) after every six-month period thereafter, provided, however,
the Compensation Committee shall have the authority, in its sole discretion, to reduce the minimum vesting period provided in this Article Two, Section I(F). Notwithstanding the foregoing, at such time as the Chairman is Independent, the minimum
vesting period required by this Article Two, Section I(F) shall not apply to options granted to such Chairman. 
  

 5 

	II.	INCENTIVE OPTIONS 

 The terms specified below shall
be applicable to all Incentive Options. Incentive Options may not be granted hereunder unless the Shareholder Approval Date occurs within 12 months of the Effective Date. Except as modified by the provisions of this Section II, all the provisions of
Articles One and Two shall be applicable to Incentive Options. Options which are specifically designated as Non-Statutory Options when issued under the Plan shall not be subject to the terms of this Section II. 
 A. ELIGIBILITY. Incentive Options may only be granted to Employees. 
 B. EXERCISE PRICE. The exercise price per share shall not be less than one hundred percent (100%) of the Fair Market Value per share
of Common Stock on the option grant date. 
 C. DOLLAR LIMITATION. The aggregate Fair Market Value of the shares of Common
Stock (determined as of the respective date or dates of grant) for which one or more options granted to any Employee under the Plan (or any other option plan of the Corporation or any Parent or Subsidiary) may for the first time become exercisable
as Incentive Options during any one calendar year shall not exceed the sum of One Hundred Thousand Dollars ($100,000). To the extent the Employee holds two (2) or more such options which become exercisable for the first time in the same
calendar year, the foregoing limitation on the exercisability of such options as Incentive Options shall be applied on the basis of the order in which such options are granted. 
 D. 10% SHAREHOLDER. If any Employee to whom an Incentive Option is granted is a 10% Shareholder, then the exercise price per share shall
not be less than one hundred ten percent (110%) of the Fair Market Value per share of Common Stock on the option grant date, and the option term shall not exceed five (5) years measured from the option grant date. 
 E. LIMITED TRANSFERABILITY OF INCENTIVE OPTIONS. During the lifetime of the Optionee, Incentive Options shall be exercisable only by the
Optionee and shall not be assignable or transferable other than to a Beneficiary following the Optionee’s death. 
  

	III.	CHANGE IN CONTROL/HOSTILE TAKE-OVER 

 A. Each
option outstanding at the time of a Change in Control but not otherwise fully-vested shall automatically accelerate so that each such option shall, immediately prior to the effective date of the Change in Control, become exercisable for all of the
shares of Common Stock at the time subject to that option and may be exercised for any or all of those shares as fully-vested shares of Common Stock. However, an outstanding option shall not so accelerate if and to the extent: (i) such option
is, in connection with the Change in Control, assumed or otherwise continued in full force and effect by the successor corporation (or parent thereof) pursuant to the terms of the Change in Control, (ii) such option is replaced with a cash
incentive program of the successor corporation which preserves the spread existing at the time of the Change in Control on the shares of Common Stock for which the option is not otherwise at that time exercisable and provides for subsequent payout
in accordance with the same vesting schedule applicable to those option shares or (iii) the acceleration of such option is subject to other limitations imposed by the Plan Administrator at the time of the option grant. Each option outstanding
at the time of the Change in Control shall terminate as provided in Section III.C. of this Article Two. 
  

 6 

 B. All outstanding repurchase rights shall also terminate automatically, and the shares of Common
Stock subject to those terminated rights shall immediately vest in full, in the event of any Change in Control, except to the extent: (i) those repurchase rights are assigned to the successor corporation (or parent thereof) or otherwise
continue in full force and effect pursuant to the terms of the Change in Control or (ii) such accelerated vesting is precluded by other limitations imposed by the Plan Administrator at the time the repurchase right is issued. 
 C. Immediately following the consummation of the Change in Control, all outstanding options shall terminate and cease to be outstanding, except to
the extent assumed by the successor corporation (or parent thereof) or otherwise expressly continued in full force and effect pursuant to the terms of the Change in Control. 
 D. Each option which is assumed in connection with a Change in Control shall be appropriately adjusted, immediately after such Change in Control,
to apply to the number and class of securities which would have been issuable to the Optionee in consummation of such Change in Control had the option been exercised immediately prior to such Change in Control. Appropriate adjustments to reflect
such Change in Control shall also be made to (i) the exercise price payable per share under each outstanding option, provided the aggregate exercise price payable for such securities shall remain the same, (ii) the maximum number and/or
class of securities available for issuance over the remaining term of the Plan and (iii) the maximum number and/or class of securities for which any one person may be granted options, separately exercisable stock appreciation rights and direct
stock issuances under the Plan per calendar year. 
 E. The Plan Administrator may at any time provide that one or more options will
automatically accelerate in connection with a Change in Control, whether or not those options are assumed or otherwise continued in full force and effect pursuant to the terms of the Change in Control. Any such option shall accordingly become
exercisable, immediately prior to the effective date of such Change in Control, for all of the shares of Common Stock at the time subject to that option and may be exercised for any or all of those shares as fully-vested shares of Common Stock. In
addition, the Plan Administrator may at any time provide that one or more of the Corporation’s repurchase rights shall not be assignable in connection with such Change in Control and shall terminate upon the consummation of such Change in
Control. 
 F. The Plan Administrator may at any time provide that one or more options will automatically accelerate upon an
Involuntary Termination of the Optionee’s Service within a designated period (not to exceed eighteen (18) months) following the effective date of any Change in Control in which those options do not otherwise accelerate. Any options so
accelerated shall remain exercisable for fully-vested shares until the earlier of (i) the expiration of the option term or (ii) the expiration of the one (1) year period measured from the effective date of the Involuntary Termination.
In addition, the Plan Administrator may at any time provide that one or more of the Corporation’s repurchase rights shall immediately terminate upon such Involuntary Termination. 
 G. The Plan Administrator may at any time provide that one or more options will automatically accelerate in connection with a Hostile Take-Over.
Any such option shall become exercisable, immediately prior to the effective date of such Hostile Take-Over, for all of the shares of Common Stock at the time subject to that option and may be exercised for any or all of those shares as fully-vested
shares of Common Stock. In addition, the Plan Administrator may at 

  

 7 

 
any time provide that one or more of the Corporation’s repurchase rights shall terminate automatically upon the consummation of such Hostile Take-Over.
Alternatively, the Plan Administrator may condition such automatic acceleration and termination upon an Involuntary Termination of the Optionee’s Service within a designated period (not to exceed eighteen (18) months) following the
effective date of such Hostile Take-Over. Each option so accelerated shall remain exercisable for fully-vested shares until the expiration or sooner termination of the option term. 
 H. The portion of any Incentive Option accelerated in connection with a Change in Control or Hostile Take Over shall remain exercisable as an
Incentive Option only to the extent the applicable One Hundred Thousand Dollar ($100,000) limitation is not exceeded. To the extent such dollar limitation is exceeded, the accelerated portion of such option shall be exercisable as a Non-Statutory
Option under the Federal tax laws. 
  

	IV.	STOCK APPRECIATION RIGHTS 

 The Plan Administrator
may, subject to such conditions as it may determine, grant to selected Optionees stock appreciation rights which will allow the holders of those rights to elect between the exercise of the underlying option for shares of Common Stock and the
surrender of that option in exchange for a distribution from the Corporation in an amount equal to the excess of (a) the Option Surrender Value of the number of shares for which the option is surrendered over (b) the aggregate exercise
price payable for such shares. The distribution may be made in shares of Common Stock valued at Fair Market Value on the option surrender date, in cash, or partly in shares and partly in cash, as the Plan Administrator shall in its sole discretion
deem appropriate. 
 ARTICLE THREE 
 STOCK ISSUANCE PROGRAM 
  

	V.	STOCK ISSUANCE TERMS 

 Shares of Common Stock may be
issued under the Stock Issuance Program through direct and immediate issuances without any intervening options. Shares of Common Stock may also be issued under the Stock Issuance Program pursuant to share right awards which entitle the recipients to
receive those shares upon the attainment of designated performance goals or Service requirements. Each such award shall be evidenced by one or more documents which comply with the terms specified below. 
 A. PURCHASE PRICE. 
 1. The purchase price per share of Common Stock subject to direct issuance shall be fixed by the Plan Administrator. 2. Subject to the provisions of Section II of Article Four, shares of Common Stock may be issued under the Stock
Issuance Program for any of the following items of consideration which the Plan Administrator may deem appropriate in each individual instance: (i) cash or check made payable to the Corporation, or (ii) past services rendered to the
Corporation (or any Parent or Subsidiary). 
  

 8 

 B. VESTING/ISSUANCE PROVISIONS. 
 1. The Plan Administrator may issue shares of Common Stock which are fully and immediately vested upon issuance or which are to
vest in one or more installments over the Participant’s period of Service or upon attainment of specified performance objectives. Alternatively, the Plan Administrator may issue share right awards which shall entitle the recipient to receive a
specified number of vested shares of Common Stock upon the attainment of one or more performance goals or Service requirements established by the Plan Administrator. 
 2. Any new, substituted or additional securities or other property (including money paid other than as a regular cash dividend)
which the Participant may have the right to receive with respect to his or her unvested shares of Common Stock by reason of any stock dividend, stock split, recapitalization, combination of shares, exchange of shares or other change affecting the
outstanding Common Stock as a class without the Corporation’s receipt of consideration shall be issued subject to (i) the same vesting requirements applicable to the Participant’s unvested shares of Common Stock and (ii) such
escrow arrangements as the Plan Administrator shall deem appropriate. 
 3. The Participant shall have full shareholder
rights with respect to the issued shares of Common Stock, whether or not the Participant’s interest in those shares is vested. Accordingly, the Participant shall have the right to vote such shares and to receive any regular cash dividends paid
on such shares. 
 4. Should the Participant cease to remain in Service while holding one or more unvested shares of
Common Stock, or should the performance objectives not be attained with respect to one or more such unvested shares of Common Stock, then those shares shall be immediately surrendered to the Corporation for cancellation, and the Participant shall
have no further shareholder rights with respect to those shares. To the extent the surrendered shares were previously issued to the Participant for consideration paid in cash or cash equivalent (including the Participant’s purchase-money
indebtedness), the Corporation shall repay to the Participant the cash consideration paid for the surrendered shares and shall cancel the unpaid principal balance of any outstanding purchase-money note of the Participant attributable to the
surrendered shares. 
 5. The Plan Administrator may waive the surrender and cancellation of one or more unvested
shares of Common Stock (or other assets attributable thereto) which would otherwise occur upon the cessation of the Participant’s Service or the non-attainment of the performance objectives applicable to those shares. Such waiver shall result
in the immediate vesting of the Participant’s interest in the shares of Common Stock as to which the waiver applies. Such waiver may be effected at any time, whether before or after the Participant’s cessation of Service or the attainment
or non-attainment of the applicable performance objectives. 
 6. Outstanding share right awards shall automatically
terminate, and no shares of Common Stock shall actually be issued in satisfaction of those awards, if the performance goals or Service requirements established for such awards are not attained. The Plan Administrator, however, shall have the
authority to issue shares of Common Stock in satisfaction of one or more outstanding share right awards as to which the designated performance goals or Service requirements are not attained. 
  

 9 

	VI.	CHANGE IN CONTROL/HOSTILE TAKE-OVER 

 A. All
of the Corporation’s outstanding repurchase rights shall terminate automatically, and all the shares of Common Stock subject to those terminated rights shall immediately vest in full, in the event of any Change in Control, except to the extent
(i) those repurchase rights are assigned to the successor corporation (or parent thereof) or otherwise continue in full force and effect pursuant to the terms of the Change in Control or (ii) such accelerated vesting is precluded by other
limitations imposed by the Plan Administrator at the time the repurchase right is issued. 
 B. The Plan Administrator may at any time
provide for the automatic termination of one or more of those outstanding repurchase rights and the immediate vesting of the shares of Common Stock subject to those terminated rights upon (i) a Change in Control or Hostile Take-Over or
(ii) an Involuntary Termination of the Participant’s Service within a designated period (not to exceed eighteen (18) months) following the effective date of any Change in Control or Hostile Take-Over in which those repurchase rights
are assigned to the successor corporation (or parent thereof) or otherwise continue in full force and effect. 
  

	VII.	SHARE ESCROW/LEGENDS 

 Unvested shares may, in the
Plan Administrator’s discretion, be held in escrow by the Corporation until the Participant’s interest in such shares vests or may be issued directly to the Participant with restrictive legends on the certificates evidencing those unvested
shares. 
 ARTICLE FOUR 
 MISCELLANEOUS 
  

	VIII.	  NO IMPAIRMENT OF AUTHORITY 

 Outstanding
awards shall in no way affect the right of the Corporation to adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or
assets. 
  

	IX.	FINANCING 

 The Plan Administrator may permit any
Optionee or Participant to pay the option exercise price under the Discretionary Option Grant Program or the purchase price of shares issued under the Stock Issuance Program by delivering a full-recourse, interest bearing promissory note payable in
one or more installments. The terms of any such promissory note (including the interest rate and the terms of repayment) shall be established by the Plan Administrator in its sole discretion. In no event may the maximum credit available to the
Optionee or Participant exceed the sum of (i) the aggregate option exercise price or purchase price payable for the purchased shares plus (ii) any Federal, state and local income and employment tax liability incurred by the Optionee or the
Participant in connection with the option exercise or share purchase. 
  

 10 

	X.	TAX WITHHOLDING 

 A. The Corporation’s
obligation to deliver shares of Common Stock upon the exercise of options or the issuance or vesting of such shares under the Plan shall be subject to the satisfaction of all applicable Federal, state and local income and employment tax withholding
requirements. 
 B. The Plan Administrator may, in its discretion, provide any or all holders of Non-Statutory Options or unvested
shares of Common Stock under the Plan with the right to use shares of Common Stock in satisfaction of all or part of the Withholding Taxes incurred by such holders in connection with the exercise of their options or the vesting of their shares. Such
right may be provided to any such holder in either or both of the following formats: 
 Stock Withholding: The election to have the
Corporation withhold, from the shares of Common Stock otherwise issuable upon the exercise of such Non-Statutory Option or the vesting of such shares, a portion of those shares with an aggregate Fair Market Value equal to the percentage of the
Withholding Taxes (not to exceed one hundred percent (100%)) designated by the holder. 
 Stock Delivery: The election to deliver to the
Corporation, at the time the Non-Statutory Option is exercised or the shares vest, one or more shares of Common Stock previously acquired by such holder (other than in connection with the option exercise or share vesting triggering the Withholding
Taxes) with an aggregate Fair Market Value equal to the percentage of the Taxes (not to exceed one hundred percent (100%)) designated by the holder. 
  

	XI.	EFFECTIVE DATE AND TERM OF THE PLAN 

 A. The
Plan shall become effective immediately upon the Plan Effective Date. Options may be granted under the Discretionary Option Grant Program at any time on or after the Plan Effective Date. However, prior to the Shareholder Approval Date, no officers
or directors of the Corporation shall be eligible to participate in the Plan. 
 B. The Plan shall terminate upon the earliest of:
(i) March 1, 2011, (ii) the date on which all shares available for issuance under the Plan shall have been issued as fully-vested shares, (iii) the termination of all outstanding options in connection with a Change in Control, or
(iv) July 1, 2008 if Company’s shareholders approve the Quest Software, Inc. 2008 Equity Incentive Plan at the 2008 Annual Meeting. Upon such plan termination, no additional stock awards will be granted and all outstanding stock
awards shall thereafter continue to have force and effect in accordance with the provisions of the documents evidencing such grants. 
  

	XII.	AMENDMENT OF THE PLAN 

 A. The Board shall
have complete and exclusive power and authority to amend or modify the Plan in any or all respects. However, no such amendment or modification shall adversely affect the rights and obligations with respect to stock options or unvested stock
issuances at the time outstanding under the Plan unless the Optionee or the Participant consents to such amendment or modification. In addition, certain amendments may require shareholder approval pursuant to applicable laws or regulations.

  

 11 

 B. Options to purchase shares of Common Stock may be granted under the Discretionary Option Grant
and shares of Common Stock may be issued under the Stock Issuance Program that are in each instance in excess of the number of shares then available for issuance under the Plan, provided any excess shares actually issued under those programs shall
be held in escrow until there is obtained shareholder approval of an amendment sufficiently increasing the number of shares of Common Stock available for issuance under the Plan. If such shareholder approval is not obtained within twelve
(12) months after the date the first such excess issuances are made, then (i) any unexercised options granted on the basis of such excess shares shall terminate and cease to be outstanding and (ii) the Corporation shall promptly
refund to the Optionees and the Participants the exercise or purchase price paid for any excess shares issued under the Plan and held in escrow, together with interest (at the applicable Short Term Federal Rate) for the period the shares were held
in escrow, and such shares shall thereupon be automatically cancelled and cease to be outstanding. 
  

	XIII. 	USE OF PROCEEDS 

 Any cash proceeds received by the
Corporation from the sale of shares of Common Stock under the Plan shall be used for general corporate purposes. 
  

	XIV. 	REGULATORY APPROVALS 

 A. The implementation
of the Plan, the granting of any stock option under the Plan and the issuance of any shares of Common Stock (i) upon the exercise of any granted option or (ii) under the Stock Issuance Program shall be subject to the Corporation’s
procurement of all approvals and permits required by regulatory authorities having jurisdiction over the Plan, the stock options granted under it and the shares of Common Stock issued pursuant to it. 
 B. No shares of Common Stock or other assets shall be issued or delivered under the Plan unless and until there shall have been compliance with
all applicable requirements of Federal and state securities laws, including the filing and effectiveness of the Form S-8 registration statement for the shares of Common Stock issuable under the Plan, and all applicable listing requirements of any
stock exchange or established market on which Common Stock is then listed for trading. 
  

	XV.	NO EMPLOYMENT/SERVICE RIGHTS 

 Nothing in the Plan
shall confer upon the Optionee or the Participant any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Corporation (or any Parent or Subsidiary employing or
retaining such person) or of the Optionee or the Participant, which rights are hereby expressly reserved by each, to terminate such person’s Service at any time for any reason, with or without cause. 
  

 12 

 APPENDIX 
 The following definitions shall be in effect under the Plan: 
 A. Beneficiary shall
mean, in the event the Plan Administrator implements a beneficiary designation procedure, the person designated by an Optionee or Participant, pursuant to such procedure, to succeed to such person’s rights under any outstanding awards held by
him or her at the time of death. In the absence of such designation or procedure, the Beneficiary shall be the personal representative of the estate of the Optionee or Participant or the person or persons to whom the award is transferred by will or
the laws of descent and distribution. 
 B. Board shall mean the Corporation’s Board of Directors. 
 C. Change In Control shall mean a change in ownership or control of the Corporation effected through any of the following
transactions: 
 (i) a merger, consolidation or reorganization approved by the Corporation’s shareholders, unless
securities representing more than fifty percent (50%) of the total combined voting power of the voting securities of the successor corporation are immediately thereafter beneficially owned, directly or indirectly and in substantially the same
proportion, by the persons who beneficially owned the Corporation’s outstanding voting securities immediately prior to such transaction, 
 (ii) any shareholder-approved transfer or other disposition of all or substantially all of the Corporation’s assets, or 
 (iii) the acquisition, directly or indirectly by any person or related group of persons (other than the Corporation or a person
that directly or indirectly controls, is controlled by, or is under common control with, the Corporation), of beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act) of securities possessing more than fifty percent (50%) of the
total combined voting power of the Corporation’s outstanding securities pursuant to a tender or exchange offer made directly to the Corporation’s shareholders which the Board recommends such shareholders accept. 
 D. Code shall mean the Internal Revenue Code of 1986, as amended. 
 E. Compensation Committee shall mean the Compensation Committee of the Corporation. 
 F. Common Stock shall mean the Corporation’s common stock. 
 G. Corporation shall mean Quest Software, Inc., a California corporation, and any corporate successor to all or substantially all of
the assets or voting stock of Quest Software, Inc. which shall by appropriate action adopt the Plan. 
 H. Discretionary Option
Grant Program shall mean the discretionary option grant program in effect under the Plan. 

 I. Employee shall mean an individual who is in the employ of the Corporation (or any
Parent or Subsidiary), subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of performance. 
 J. Exercise Date shall mean the date on which the Corporation shall have received written notice of the option exercise. 
 K. Fair Market Value per share of Common Stock on any relevant date shall be determined in accordance with the following provisions:

 (i) If the Common Stock is at the time traded on the Nasdaq Capital Market, then the Fair Market Value shall be the
closing selling price per share of Common Stock on the date in question, as such price is reported on the Nasdaq Capital Market or any successor system. If there is no closing selling price for the Common Stock on the date in question, then the Fair
Market Value shall be the closing selling price on the last preceding date for which such quotation exists. 
 (ii) If
the Common Stock is at the time listed on any Stock Exchange, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question on the Stock Exchange determined by the Plan Administrator to be the
primary market for the Common Stock, as such price is officially quoted in the composite tape of transactions on such exchange. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be
the closing selling price on the last preceding date for which such quotation exists. 
 (iii) If the Common Stock is
not at the time traded on the Nasdaq National Market or listed on any Stock Exchange, then the Fair Market Value shall be determined by the Plan Administrator, after taking into account such factors as it deems appropriate. 
 L. Hostile Take-Over shall mean: 
 (i) the acquisition, directly or indirectly, by any person or related group of persons (other than the Corporation or a person that directly or indirectly controls, is controlled by, or is under common control
with, the Corporation) of beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Corporation’s outstanding securities
pursuant to a tender or exchange offer made directly to the Corporation’s shareholders which the Board does not recommend such shareholders to accept, or 
 (ii) a change in the composition of the Board over a period of thirty-six (36) consecutive months or less such that a majority
of the Board members ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals who either (A) have been Board members continuously since the beginning of such period or (B) have been elected
or nominated for election as Board members during such period by at least a majority of the Board members described in clause (A) who were still in office at the time the Board approved such election or nomination. 

 M. Incentive Option shall mean an option which satisfies the requirements of Code
Section 422. 
 N. Independent shall have such meaning as defined in Section 303A.02 of the New York Stock
Exchange Listed Companies Manual. 
 O. Involuntary Termination shall mean the termination of the Service of any
individual which occurs by reason of: 
 (i) such individual’s involuntary dismissal or discharge by the
Corporation for reasons other than Misconduct, or 
 (ii) such individual’s voluntary resignation following
(A) a change in his or her position with the Corporation or Parent or Subsidiary employing the individual which materially reduces his or her duties and responsibilities or the level of management to which he or she reports, (B) a
reduction in his or her level of compensation (including base salary, fringe benefits and target bonus under any performance based bonus or incentive programs) by more than fifteen percent (15%) or (C) a relocation of such
individual’s place of employment by more than fifty (50) miles, provided and only if such change, reduction or relocation is effected by the Corporation without the individual’s consent. 
 P. Misconduct shall mean the commission of any act of fraud, embezzlement or dishonesty by the Optionee or Participant, any
unauthorized use or disclosure by such person of confidential information or trade secrets of the Corporation (or any Parent or Subsidiary), or any intentional wrongdoing by such person, whether by omission or commission, which adversely affects the
business or affairs of the Corporation (or any Parent or Subsidiary) in a material manner. This shall not limit the grounds for the dismissal or discharge of any person in the Service of the Corporation (or any Parent or Subsidiary). 
 Q. 1934 Act shall mean the Securities Exchange Act of 1934, as amended. 
 R. Non-Statutory Option shall mean an option not intended to satisfy the requirements of Code Section 422. 
 S. Option Surrender Value shall mean the Fair Market Value per share of Common Stock on the date the option is surrendered to the
Corporation or, in the event of a Hostile Take-Over, effected through a tender offer, the highest reported price per share of Common Stock paid by the tender offeror in effecting such Hostile Take-Over, if greater. However, if the surrendered option
is an Incentive Option, the Option Surrender Value shall not exceed the Fair Market Value per share. 
 T. Optionee
shall mean any person to whom an option is granted under the Discretionary Option Grant Program. 
 U. Parent
shall mean any corporation (other than the Corporation) in an unbroken chain of corporations ending with the Corporation, provided each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination,
stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 

 V. Participant shall mean any person who is issued shares of Common Stock under the
Stock Issuance Program. 
 W. Permanent Disability Or Permanently Disabled shall mean the inability of the Optionee or
the Participant to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment expected to result in death or to be of continuous duration of twelve (12) months or more. 
 X. Plan shall mean the Corporation’s 2001 Stock Incentive Plan, as set forth in this document. 
 Y. Plan Administrator shall mean the particular entity, whether the Primary Committee, the Board or the Secondary Committee, which
is authorized to administer the Discretionary Option Grant and Stock Issuance Programs with respect to one or more classes of eligible persons, to the extent such entity is carrying out its administrative functions under those programs with respect
to the persons under its jurisdiction. However, the Primary Committee shall have the plenary authority to make all factual determinations and to construe and interpret any and all ambiguities under the Plan to the extent such authority is not
otherwise expressly delegated to any other Plan Administrator. 
 Z. Plan Effective Date shall mean March 28, 2001,
the date on which the Plan was adopted by the Board. 
 AA. Primary Committee shall mean the committee of two
(2) or more members of the Compensation Committee appointed by the Board to administer the Discretionary Option Grant and Stock Issuance Programs with respect to eligible persons. 
 BB. Secondary Committee shall mean a subcommittee of two (2) or more members of the Compensation Committee appointed by the
Board to administer the Discretionary Option Grant and Stock Issuance Programs with respect to eligible persons other than Section 16 Insiders. 
 CC. Section 16 Insider shall mean an officer or director of the Corporation subject to the short-swing profit liabilities of Section 16 of the 1934 Act. 
 DD. Service shall mean the performance of services for the Corporation (or any Parent or Subsidiary) by a person in the capacity of
an Employee, a non-employee member of the board of directors or a consultant or independent advisor, except to the extent otherwise specifically provided in the documents evidencing the option grant or stock issuance. 
 EE. Shareholder Approval Date shall mean the date on which the Plan and the issuance of shares of Common stock pursuant to the Plan
shall have been approved by the Company’s shareholders in satisfaction of applicable requirements of the Nasdaq National Market or Stock Exchange on which the Common Stock is traded or listed. 
 FF. Stock Exchange shall mean either the American Stock Exchange, the New York Stock Exchange, or the Nasdaq Stock Market.

 GG. Stock Issuance Program shall mean the stock issuance program in effect under the
Plan. 
 HH. Subsidiary shall mean any corporation (other than the Corporation) in an unbroken chain of corporations
beginning with the Corporation, provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all
classes of stock in one of the other corporations in such chain. 
 II. 10% Shareholder shall mean the owner of stock
(as determined under Code Section 424(d)) possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Corporation (or any Parent or Subsidiary). 
 JJ. Withholding Taxes shall mean the Federal, state and local income and employment withholding tax liabilities to which the holder
of Non-Statutory Options or unvested shares of Common Stock may become subject in connection with the exercise of those options or the vesting of those shares.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]