Document:

Nextest Systems Corporation 2006 Equity Incentive Plan

 Exhibit 10.34 
 2006 EQUITY INCENTIVE PLAN 
 OF 
 NEXTEST SYSTEMS CORPORATION 
 1. Purpose of this Plan  
 The purpose of this 2006 Equity Incentive Plan is to enhance the long-term stockholder value of Nextest Systems Corporation by offering opportunities to
eligible individuals to participate in the growth in value of the equity of Nextest Systems Corporation. 
 2. Definitions and Rules of Interpretation
 
 2.1 Definitions.  
 This Plan uses the following defined terms: 
 (a) “Administrator” means the Board or the
Committee, or any officer or employee of the Company to whom the Board or the Committee delegates authority to administer this Plan. 
 (b) “Affiliate” means a “parent” or “subsidiary” (as each is defined in Section 424 of the Code) of the Company and any other entity that the Board or Committee designates as an
“Affiliate” for purposes of this Plan. 
 (c) “Applicable Law” means any and all laws of
whatever jurisdiction, within or without the United States, and the rules of any stock exchange or quotation system on which Shares are listed or quoted, applicable to the taking or refraining from taking of any action under this Plan, including the
administration of this Plan and the issuance or transfer of Awards or Award Shares. 
 (d)
“Award” means a Stock Award, SAR, Cash Award, or Option granted in accordance with the terms of this Plan. 
 (e) “Award Agreement” means the document evidencing the grant of an Award. 
 (f) “Award Shares” means Shares covered by an outstanding Award or purchased under an Award. 
 (g) “Awardee” means: (i) a person to whom an Award has been granted, including a holder of a Substitute Award, (ii) a person to whom an Award has been transferred in accordance with all applicable
requirements of Sections 6.5, 7(h), and 17. 
 (h) “Board” means the Board of Directors of the
Company. 
 (i) “Cash Award” means the right to receive cash as described in Section 8.3.

 (j) “Change in Control” means any transaction or event that the Board specifies as a Change in
Control under Section 10.4. 
 (k) “Code” means the Internal Revenue Code of 1986. 
 (l) “Committee” means a committee composed of Company Directors appointed in accordance with the Company’s
charter documents and Section 4. 
 (m) “Company” means Nextest Systems Corporation, a Delaware
corporation. 
 (n) “Company Director” means a member of the Board. 
 (o) “Consultant” means an individual who, or an employee of any entity that, provides bona fide services to the
Company or an Affiliate not in connection with the offer or sale of securities in a capital-raising transaction, but who is not an Employee. 
 (p) “Director” means a member of the Board of Directors of the Company or an Affiliate. 
 (q) “Divestiture” means any transaction or event that the Board specifies as a Divestiture under Section 10.5. 
 (r) “Domestic Relations Order” means a “domestic relations order” as defined in, and
otherwise meeting the requirements of, Section 414(p) of the Code, except that reference to a “plan” in that definition shall be to this Plan. 
  

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 (s) “Effective Date” means the first date of the
sale by the Company of shares of its capital stock in an initial public offering pursuant to a registration statement on Form S-1 filed with the SEC. 
 (t) “Employee” means a regular employee of the Company or an Affiliate, including an officer or Director, who is treated as an employee in the personnel records of the Company or an Affiliate,
but not individuals who are classified by the Company or an Affiliate as: (i) leased from or otherwise employed by a third party, (ii) independent contractors, or (iii) intermittent or temporary workers. The Company’s or an
Affiliate’s classification of an individual as an “Employee” (or as not an “Employee”) for purposes of this Plan shall not be altered retroactively even if that classification is changed retroactively for another purpose as
a result of an audit, litigation or otherwise. An Awardee shall not cease to be an Employee due to transfers between locations of the Company, or between the Company and an Affiliate, or to any successor to the Company or an Affiliate that assumes
the Awardee’s Options under Section 10. Neither service as a Director nor receipt of a director’s fee shall be sufficient to make a Director an “Employee.” 
 (u) “Exchange Act” means the Securities Exchange Act of 1934. 
 (v) “Executive” means, if the Company has any class of any equity security registered under Section 12 of the
Exchange Act, an individual who is subject to Section 16 of the Exchange Act or who is a “covered employee” under Section 162(m) of the Code, in either case because of the individual’s relationship with the Company or an
Affiliate. If the Company does not have any class of any equity security registered under Section 12 of the Exchange Act, “Executive” means any (i) Director, (ii) officer elected or appointed by the Board, or
(iii) beneficial owner of more than 10% of any class of the Company’s equity securities. 
 (w)
“Expiration Date” means, with respect to an Award, the date stated in the Award Agreement as the expiration date of the Award or, if no such date is stated in the Award Agreement, then the last day of the maximum exercise
period for the Award, disregarding the effect of an Awardee’s Termination or any other event that would shorten that period. 
 (x) “Fair Market Value” means the value of Shares as determined under Section 18.2. 
 (y) “Fundamental Transaction” means any transaction or event described in Section 10.3. 
 (z) “Grant Date” means the date the Administrator approves the grant of an Award. However, if the Administrator specifies that an Award’s Grant Date is a future date or the date on which a condition is
satisfied, the Grant Date for such Award is that future date or the date that the condition is satisfied. 
 (aa)
“Incentive Stock Option” means an Option intended to qualify as an incentive stock option under Section 422 of the Code and designated as an Incentive Stock Option in the Award Agreement for that Option. 
 (bb) “Nonstatutory Option” means any Option other than an Incentive Stock Option. 
 (cc) “Non-Employee Director” means any person who is a member of the Board but is not an Employee of the Company
or any Affiliate of the Company and has not been an Employee of the Company or any Affiliate of the Company at any time during the preceding twelve months. Service as a Director does not in itself constitute employment for purposes of this
definition. 
 (dd) “Objectively Determinable Performance Condition” shall mean a
performance condition (i) that is established (A) at the time an Award is granted or (B) no later than the earlier of (1) 90 days after the beginning of the period of service to which it relates, or (2) before the elapse of
25% of the period of service to which it relates, (ii) that is uncertain of achievement at the time it is established, and (iii) the achievement of which is determinable by a third party with knowledge of the relevant facts. Examples of
measures that may be used in Objectively Determinable Performance Conditions include net order dollars, net profit dollars, net profit growth, net revenue dollars, revenue growth, individual performance, earnings per share, return on assets, return
on equity, and other financial objectives, objective customer satisfaction indicators and efficiency measures, each with respect to the Company and/or an Affiliate or individual business unit. 
  

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 (ee) “Officer” means an officer of the Company as defined in Rule
16a-1 adopted under the Exchange Act. 
 (ff) “Option” means a right to purchase Shares of the Company
granted under this Plan. 
 (gg) “Option Price” means the price payable under an Option for Shares,
not including any amount payable in respect of withholding or other taxes. 
 (hh) “Option Shares”
means Shares covered by an outstanding Option or purchased under an Option. 
 (ii) “Plan”
means this 2006 Equity Incentive Plan of Nextest Systems Corporation. 
 (jj) “Prior
Plans” means the Company’s 1998 Equity Incentive Plan. 
 (kk) “Purchase
Price” means the price payable under a Stock Award for Shares, not including any amount payable in respect of withholding or other taxes. 
 (ll) “Rule 16b-3” means Rule 16b-3 adopted under Section 16(b) of the Exchange Act. 
 (mm) “SAR” or “Stock Appreciation Right” means a right to receive cash based on a change in the Fair Market Value of a specific number of Shares pursuant to an Award Agreement, as
described in Section 8.1. 
 (nn) “Securities Act” means the Securities Act of 1933. 

(oo) “Share” means a share of the common stock of the Company or other securities substituted for the common
stock under Section 10. 
 (pp) “Stock Award” means an offer by the Company to sell shares
subject to certain restrictions pursuant to the Award Agreement as described in Section 8.2 or, as determined by the Committee, a notional account representing the right to be paid an amount based on Shares. Types of Awards which may be granted
as Stock Awards include such awards as are commonly known as restricted stock, deferred stock, restricted stock units, performance shares, phantom stock or similar types of awards as determined by the Administrator. 
 (qq) “Substitute Award” means a Substitute Option, Substitute SAR or Substitute Stock Award granted in accordance
with the terms of this Plan. 
 (rr) “Substitute Option” means an Option granted in substitution for,
or upon the conversion of, an option granted by another entity to purchase equity securities in the granting entity. 
 (ss)
“Substitute SAR” means a SAR granted in substitution for, or upon the conversion of, a stock appreciation right granted by another entity with respect to equity securities in the granting entity. 
 (tt) “Substitute Stock Award” means a Stock Award granted in substitution for, or upon the conversion of, a stock
award granted by another entity to purchase equity securities in the granting entity. 
 (uu) “Termination”
means that the Awardee has ceased to be, with or without any cause or reason, an Employee, Director or Consultant. However, unless so determined by the Administrator, or otherwise provided in this Plan, “Termination” shall not
include a change in status from an Employee, Consultant or Director to another such status. An event that causes an Affiliate to cease being an Affiliate shall be treated as the “Termination” of that Affiliate’s Employees, Directors,
and Consultants. 
 2.2 Rules of Interpretation. Any reference to a “Section,” without more, is to a Section of this Plan.
Captions and titles are used for convenience in this Plan and shall not, by themselves, determine the meaning of this Plan. Except when otherwise indicated by the context, the singular includes the plural and vice versa. Any reference to a statute
is also a reference to the applicable rules and regulations adopted under that statute. Any reference to a statute, rule or regulation, or to a section of a statute, rule or regulation, is a reference to that statute, rule, regulation, or section as
amended from time to time, both before and after the Effective Date and including any successor provisions. 
  

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 3. Shares Subject to this Plan; Term of this Plan  
 3.1 Number of Award Shares. The Shares issuable under this Plan shall be authorized but unissued or reacquired Shares, including Shares
repurchased by the Company on the open market. The number of Shares initially reserved for issuance over the term of this Plan shall be 1,000,000. Notwithstanding the foregoing, the number of Shares reserved for issuance under the Plan shall be
increased by (i) the number of Shares available for issuance, as of the Effective Date, under the Prior Plans as last approved by the Company’s stockholders, (ii) those Shares issued under the Prior Plans that are forfeited or
repurchased by the Company or that are issuable upon exercise of awards granted pursuant to the Prior Plans that expire or become unexercisable for any reason without having been exercised in full after the Effective Date and (iii) any Shares
withheld on a net basis to pay either the exercise price or withholding obligation. The maximum number of Shares shall be cumulatively increased on the first January 1 after the Effective Date and each January 1 thereafter for nine more
years, by a number of Shares equal to the lesser of (a) the number of Shares required to replenish the remaining pool to one million shares, or (b) if specifically addressed by the Board, a number of Shares set by the Board. When an
Award is granted, the maximum number of Shares that may be issued under this Plan shall be reduced by the number of Shares covered by that Award or estimated by the Board to be issued under the Award. However, if an Award later terminates or expires
without having been exercised in full, the maximum number of Shares that may be issued under this Plan shall be increased by the number of Shares that were covered by, but not purchased under, that Award. 
 3.2 Source of Shares. Award Shares may be: (a) Shares that have never been issued, (b) Shares that have been issued but are no longer
outstanding, or (c) Shares that are outstanding and are acquired to discharge the Company’s obligation to deliver Award Shares. 
 3.3 Term of this Plan 
 (a) This Plan shall be effective on, and Awards may be granted under this Plan on and
after, the earliest the date on which the Plan has been both adopted by the Board and approved by the Company’s stockholders. Upon effectiveness of this Plan, no additional awards will be made under the Prior Plans. 
 (b) Subject to the provisions of Section 14, Awards may be granted under this Plan for a period of ten years from the earlier of the
date on which the Board approves this Plan and the date the Company’s stockholders approve this Plan. Accordingly, Awards may not be granted under this Plan after the 10th anniversary of the date determined in the preceding sentence.

 4. Administration  
 4.1 General
 
 (a) The Board shall have ultimate responsibility for administering this Plan. To the extent permitted by Applicable
Law, the Board may delegate certain of its responsibilities to a Committee, which shall consist of at least two members of the Board. In addition, to the extent permitted by Applicable Law, the Board or the Committee may further delegate its
responsibilities to any Employee of the Company or any Affiliate. Where this Plan specifies that an action is to be taken or a determination made by the Board, only the Board may take that action or make that determination. Where this Plan specifies
that an action is to be taken or a determination made by the Committee, only the Committee may take that action or make that determination. Where this Plan references the “Administrator,” the action may be taken or determination made by
the Board, the Committee, or other Administrator. However, only the Board or the Committee may approve grants of Awards to Executives, and an Administrator other than the Board or the Committee may grant Awards only within the guidelines established
by the Board or Committee. Moreover, all actions and determinations by any Administrator are subject to the provisions of this Plan. 
  

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 (b) So long as the Company has registered and outstanding a class of equity securities
under Section 12 of the Exchange Act and to the extent necessary or helpful to comply with Applicable Law with respect to officers and directors subject to Section 16 of the Exchange Act and/or others, the Committee shall consist of
Company Directors who are “Non-Employee Directors” as defined in Rule 16b-3 and, after the expiration of any transition period permitted by Treasury Regulations Section 1.162-27(h)(3), who are “outside directors” as
defined in Section 162(m) of the Code. 
 4.2 Authority of the Board or the Committee. Subject to the other provisions of this
Plan, the Board or the Committee shall have the authority to: 
 (a) grant Awards, including Substitute Awards; 
 (b) determine the Fair Market Value of Shares; 
 (c) determine the Option Price and the Purchase Price of Awards; 
 (d) select the Awardees; 
 (e) determine the times Awards are granted; 
 (f) determine the number of Shares subject to
each Award; 
 (g) determine the methods of payment that may be used to purchase Award Shares; 
 (h) determine the methods of payment that may be used to satisfy withholding tax obligations; 
 (i) determine the other terms of each Award, including but not limited to the time or times at which Awards may be exercised, whether and
under what conditions an Award is assignable, and whether an Option is a Nonstatutory Option or an Incentive Stock Option; 
 (j) modify or amend any Award; 
 (k) authorize any person to sign any Award Agreement or other document related to
this Plan on behalf of the Company; 
 (l) determine the form of any Award Agreement or other document related to this Plan,
and whether that document, including signatures, may be in electronic form; 
 (m) interpret this Plan and any Award Agreement
or document related to this Plan; 
 (n) correct any defect, remedy any omission, or reconcile any inconsistency in this Plan,
any Award Agreement or any other document related to this Plan; 
 (o) adopt, amend, and revoke rules and regulations under
this Plan, including rules and regulations relating to sub-plans and Plan addenda; 
 (p) adopt, amend, and revoke special
rules and procedures which may be inconsistent with the terms of this Plan, set forth (if the Administrator so chooses) in sub-plans regarding (for example) the operation and administration of this Plan and the terms of Awards, if and to the extent
necessary or useful to accommodate non-U.S. Applicable Laws and practices as they apply to Awards and Award Shares held by, or granted or issued to, persons working or resident outside of the United States or employed by Affiliates incorporated
outside the United States; 
 (q) determine whether a transaction or event should be treated as a Change in Control, a
Divestiture or neither; 
 (r) determine the effect of a Fundamental Transaction and, if the Board determines that a
transaction or event should be treated as a Change in Control or a Divestiture, then the effect of that Change in Control or Divestiture; and 
 (s) make all other determinations the Administrator deems necessary or advisable for the administration of this Plan. 
 4.3 Scope of Discretion. Subject to the provisions of this Section 4.3, on all matters for which this Plan confers the authority, right or power on the Board, the Committee, or other Administrator to make
decisions, that body may make those decisions in its sole and absolute discretion. Those 

  

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decisions will be final, binding and conclusive. In making its decisions, the Board, Committee or other Administrator need not treat all persons eligible to
receive Awards, all Awardees, all Awards or all Award Shares the same way. Notwithstanding anything herein to the contrary, and except as provided in Section 14.3, the discretion of the Board, Committee or other Administrator is subject to the
specific provisions and specific limitations of this Plan, as well as all rights conferred on specific Awardees by Award Agreements and other agreements. 
 5. Persons Eligible to Receive Awards  
 5.1 Eligible Individuals. Awards (including Substitute Awards) may be
granted to, and only to, Employees, Directors and Consultants, including to prospective Employees, Directors and Consultants conditioned on the beginning of their service for the Company or an Affiliate. However, Incentive Stock Options may only be
granted to Employees, as provided in Section 7(g). 
 5.2 Section 162(m) Limitation.  
 (a) Options and SARs. Subject to the provisions of this Section 5.2, for so long as the Company is a “publicly held
corporation” within the meaning of Section 162(m) of the Code: (i) no Employee may be granted one or more SARs and Options within any fiscal year of the Company under this Plan to purchase more than 1,500,000 Shares under Options or
to receive compensation calculated with reference to more than that number of Shares under SARs, subject to adjustment pursuant to Section 10, (ii) Options and SARs may be granted to an Executive only by the Committee (and, notwithstanding
anything to the contrary in Section 4.1(a), not by the Board). If an Option or SAR is cancelled without being exercised or if the Option Price of an Option is reduced, that cancelled or repriced Option or SAR shall continue to be counted
against the limit on Awards that may be granted to any individual under this Section 5.2. 
 (b) Cash Awards and Stock
Awards. Any Cash Award or Stock Award intended as “qualified performance-based compensation” within the meaning of Section 162(m) of the Code must vest or become exercisable contingent on the achievement of one or more Objectively
Determinable Performance Conditions. The Committee shall have the discretion to determine the time and manner of compliance with Section 162(m) of the Code. 
 6. Terms and Conditions of Options  
 The following rules apply to all Options: 
 6.1 Price. Except as specifically permitted by the Committee, after taking into account the accounting, disclosure and other ramifications,
including the restrictions applicable to discounted stock options under Code Section 409A, no Option may have an Option Price less than 100% of the Fair Market Value of the Shares on the Grant Date. In no event will the Option Price of any
Option be less than the par value of the Shares issuable under the Option if that is required by Applicable Law. The Option Price of an Incentive Stock Option shall be subject to Section 7(f). 
 6.2 Term. No Option shall be exercisable after its Expiration Date. No Option may have an Expiration Date that is more than ten years after its
Grant Date. Additional provisions regarding the term of Incentive Stock Options are provided in Sections 7(a) and 7(e). 
 6.3
Vesting. Options shall be exercisable: (a) on the Grant Date, or (b) in accordance with a schedule related to the Grant Date, the date the Awardee’s directorship, employment or consultancy begins, or a different date specified
in the Award Agreement. Additional provisions regarding the vesting of Incentive Stock Options are provided in Section 7(c). No Option granted to an individual who is subject to the overtime pay provisions of the Fair Labor Standards Act may be
exercised before the expiration of six months after the Grant Date. 
 6.4 Form and Method of Payment.  
 (a) The Board or Committee shall determine the acceptable form and method of payment for exercising an Option. So long as variable
accounting pursuant to “APB 25” does not apply and the Board or Committee otherwise determines there is no material adverse accounting 

  

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consequence at the time of exercise, the Board or Committee may require the delivery in Shares for the value of the net appreciation of the Shares at the
time of exercise over the exercise price. The difference between the full number of Shares covered by the exercised portion of the Award and the number of Shares actually delivered shall be restored to the amount of Shares reserved for issuance
under Section 3.1. 
 (b) Acceptable forms of payment for all Option Shares are cash, check or wire transfer, denominated
in U.S. dollars except as specified by the Administrator for non-U.S. Employees or non-U.S. sub-plans. 
 (c) In addition, the
Administrator may permit payment to be made by any of the following methods: 
 (i) other Shares, or the designation of other
Shares, which (A) if required to avoid variable accounting or other adverse accounting consequences are “mature” shares for such purposes (generally mature shares are those that have been owned by the Awardee for more than six months
on the date of surrender), and (B) have a Fair Market Value on the date of surrender equal to the Option Price of the Shares as to which the Option is being exercised; 
 (ii) provided that a public market exists for the Shares and only as permitted under Applicable Law, consideration received by the Company
under a procedure under which a licensed broker-dealer advances funds on behalf of an Awardee or sells Option Shares on behalf of an Awardee (a “Cashless Exercise Procedure”), provided that if the Company extends or arranges
for the extension of credit to an Awardee under any Cashless Exercise Procedure, no Officer or Director may participate in that Cashless Exercise Procedure; 
 (iii) cancellation of any debt owed by the Company or any Affiliate to the Awardee by the Company including without limitation waiver of
compensation due or accrued for services previously rendered to the Company; and 
 (iv) any combination of the methods of
payment permitted by any paragraph of this Section 6.4. 
 (d) The Administrator may also permit any other form or method
of payment for Option Shares permitted by Applicable Law. 
 6.5 Nonassignability of Options. Except as determined by the
Administrator, no Option shall be assignable or otherwise transferable by the Awardee except by will or by the laws of descent and distribution. However, Options may be transferred and exercised in accordance with a Domestic Relations Order and may
be exercised by a guardian or conservator appointed to act for the Awardee. Incentive Stock Options may only be assigned in compliance with Section 7(h). 
 6.6 Substitute Options. The Board may cause the Company to grant Substitute Options in connection with the acquisition by the Company or an Affiliate of equity securities of any entity (including by merger,
tender offer, or other similar transaction) or of all or a portion of the assets of any entity. Any such substitution shall be effective on the effective date of the acquisition. Substitute Options may be Nonstatutory Options or Incentive Stock
Options. Unless and to the extent specified otherwise by the Board, Substitute Options shall have the same terms and conditions as the options they replace, except that (subject to the provisions of Section 10) Substitute Options shall be
Options to purchase Shares rather than equity securities of the granting entity, shall have an Option Price determined by the Board and shall be on terms that, as determined by the Board in its sole and absolute discretion, properly reflect the
substitution. 
 6.7 Repricings. In furtherance of, and not in limitation of the provisions of Section 10, Options may not be
repriced, replaced or regranted through cancellation or modification without approval of the stockholders. 
  

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 7. Incentive Stock Options.  
 The following rules apply only to Incentive Stock Options and only to the extent these rules are more restrictive than the rules that would otherwise apply under this Plan. With the consent of the Awardee, or where
this Plan provides that an action may be taken notwithstanding any other provision of this Plan, the Administrator may deviate from the requirements of this Section, notwithstanding that any Incentive Stock Option modified by the Administrator will
thereafter be treated as a Nonstatutory Option. 
 (a) The Expiration Date of an Incentive Stock Option shall not be later
than ten years from its Grant Date, with the result that no Incentive Stock Option may be exercised after the expiration of ten years from its Grant Date. 
 (b) No Incentive Stock Option may be granted more than ten years from the date this Plan was approved by the Board. 
 (c) Options intended to be incentive stock options under Section 422 of the Code that are granted to any single Awardee under all incentive stock option plans of the Company and its Affiliates, including
incentive stock options granted under this Plan, may not vest at a rate of more than $100,000 in Fair Market Value of stock (measured on the grant dates of the options) during any calendar year. For this purpose, an option vests with respect to a
given share of stock the first time its holder may purchase that share, notwithstanding any right of the Company to repurchase that share. Unless the administrator of that option plan specifies otherwise in the related agreement governing the
option, this vesting limitation shall be applied by, to the extent necessary to satisfy this $ 100,000 rule, treating certain stock options that were intended to be incentive stock options under Section 422 of the Code as Nonstatutory Options.
The stock options or portions of stock options to be reclassified as Nonstatutory Options are those with the highest option prices, whether granted under this Plan or any other equity compensation plan of the Company or any Affiliate that permits
that treatment. This Section 7(c) shall not cause an Incentive Stock Option to vest before its original vesting date or cause an Incentive Stock Option that has already vested to cease to be vested. 
 (d) In order for an Incentive Stock Option to be exercised for any form of payment other than those described in Section 6.4(b), that
right must be stated at the time of grant in the Award Agreement relating to that Incentive Stock Option. 
 (e) Any Incentive
Stock Option granted to a Ten Percent Stockholder, must have an Expiration Date that is not later than five years from its Grant Date, with the result that no such Option may be exercised after the expiration of five years from the Grant Date. A
“Ten Percent Stockholder” is any person who, directly or by attribution under Section 424(d) of the Code, owns stock possessing more than ten percent of the total combined voting power of all classes of stock of the
Company or of any Affiliate on the Grant Date. 
 (f) The Option Price of an Incentive Stock Option shall never be less than
the Fair Market Value of the Shares at the Grant Date. The Option Price for the Shares covered by an Incentive Stock Option granted to a Ten Percent Stockholder shall never be less than 110% of the Fair Market Value of the Shares at the Grant Date.

 (g) Incentive Stock Options may be granted only to Employees. If an Awardee changes status from an Employee to a
Consultant, that Awardee’s Incentive Stock Options become Nonstatutory Options if not exercised within the time period described in Section 7(i) (determined by treating that change in status as a Termination solely for purposes of this
Section 7(g)). 
 (h) No rights under an Incentive Stock Option may be transferred by the Awardee, other than by will or
the laws of descent and distribution. During the life of the Awardee, an Incentive Stock Option may be exercised only by the Optionee. The Company’s compliance with a Domestic Relations Order, or the exercise of an Incentive Stock Option by a
guardian or conservator appointed to act for the Awardee, shall not violate this Section 7(h). 
 (i) An Incentive Stock
Option shall be treated as a Nonstatutory Option if it remains exercisable after, and is not exercised within, the three-month period beginning with the 

  

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Awardee’s Termination for any reason other than the Awardee’s death or disability (as defined in Section 22(e) of the Code). In the case of
Termination due to death, an Incentive Stock Option shall continue to be treated as an Incentive Stock Option if it remains exercisable after, and is not exercised within, the three-month period after the Awardee’s Termination provided it is
exercised before the Expiration Date. In the case of Termination due to disability, an Incentive Stock Option shall be treated as a Nonstatutory Option if it remains exercisable after, and is not exercised within, one year after the Awardee’s
Termination. 
 (j) An Incentive Stock Option may only be modified by the Board. 
 8. Stock Appreciation Rights, Stock Awards and Cash Awards  
 8.1 Stock Appreciation Rights. The following rules apply to SARs: 
 (a) General. SARs may be
granted either alone, in addition to, or in tandem with other Awards granted under this Plan. The Administrator may grant SARs to eligible participants subject to terms and conditions not inconsistent with this Plan and determined by the
Administrator. The specific terms and conditions applicable to the Awardee shall be provided for in the Award Agreement. SARs shall be exercisable, in whole or in part, at such times as the Administrator shall specify in the Award Agreement. The
grant or vesting of a SAR may be made contingent on the achievement of Objectively Determinable Performance Conditions. 
 (b)
Exercise of SARs. Upon the exercise of a SAR, in whole or in part, an Awardee shall be entitled to a payment in an amount equal to the excess of the Fair Market Value of a fixed number of Shares covered by the exercised portion of the
SAR on the date of exercise, over the Fair Market Value of the Shares covered by the exercised portion of the SAR on the Grant Date. The amount due to the Awardee upon the exercise of a SAR shall be paid in cash, Shares or a combination thereof,
over the period or periods specified in the Award Agreement. An Award Agreement may place limits on the amount that may be paid over any specified period or periods upon the exercise of a SAR, on an aggregate basis or as to any Awardee. A SAR shall
be considered exercised when the Company receives written notice of exercise in accordance with the terms of the Award Agreement from the person entitled to exercise the SAR. If a SAR has been granted in tandem with an Option, upon the exercise of
the SAR, the number of shares that may be purchased pursuant to the Option shall be reduced by the number of shares with respect to which the SAR is exercised. 
 (c) Nonassignability of SARs. Except as determined by the Administrator, no SAR shall be assignable or otherwise
transferable by the Awardee except by will or by the laws of descent and distribution. Notwithstanding anything herein to the contrary, SARs may be transferred and exercised in accordance with a Domestic Relations Order. 
 (d) Substitute SARs. The Board may cause the Company to grant Substitute SARs in connection with the acquisition by the
Company or an Affiliate of equity securities of any entity (including by merger) or all or a portion of the assets of any entity. Any such substitution shall be effective on the effective date of the acquisition. Unless and to the extent specified
otherwise by the Board, Substitute SARs shall have the same terms and conditions as the SARS they replace, except that (subject to the provisions of Section 9) Substitute SARs shall be exercisable with respect to the Fair Market Value of Shares
rather than equity securities of the granting entity and shall be on terms that, as determined by the Board in its sole and absolute discretion, properly reflects the substitution. 
 (e) Repricings. A SAR may not be repriced, replaced or regranted, through cancellation or modification without the approval
of the stockholders. 
 8.2 Stock Awards. The following rules apply to all Stock Awards: 
 (a) General. The specific terms and conditions of a Stock Award applicable to the Awardee shall be provided for in the Award
Agreement. The Award Agreement shall state the number of Shares that the Awardee shall be entitled to receive or purchase, the terms and conditions on which the Shares shall vest, the price, if any, to be paid, whether Shares are to be 

  

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delivered at the time of grant or at some deferred date specified in the Award Agreement, whether the Award is payable solely in Shares, cash or either and,
if applicable, the time within which the Awardee must accept such offer. 
 The offer shall be accepted by execution of the Award Agreement.
The Administrator may require that all Shares subject to a right of repurchase or risk of forfeiture be held in escrow until such repurchase right or risk of forfeiture lapses. The grant or vesting of a Stock Award may be made contingent on the
achievement of Objectively Determinable Performance Conditions. 
 (b) Right of Repurchase. If so provided in
the Award Agreement, Award Shares acquired pursuant to a Stock Award may be subject to repurchase by the Company or an Affiliate if not vested in accordance with the Award Agreement. 
 (c) Form of Payment. The Administrator shall determine the acceptable form and method of payment for exercising a Stock
Award. Acceptable forms of payment for all Award Shares are cash, check or wire transfer, denominated in U.S. dollars except as specified by the Administrator for non-U.S. sub-plans. In addition, the Administrator may permit payment to be made by
any of the methods permitted with respect to the exercise of Options pursuant to Section 6.4. 
 (d)
Nonassignability of Stock Awards. Except as determined by the Administrator, no Stock Award shall be assignable or otherwise transferable by the Awardee except by will or by the laws of descent and distribution. Notwithstanding
anything to the contrary herein, Stock Awards may be transferred and exercised in accordance with a Domestic Relations Order. 
 (e) Substitute Stock Award. The Board may cause the Company to grant Substitute Stock Awards in connection with the acquisition by the Company or an Affiliate of equity securities of any entity (including by merger) or all or
a portion of the assets of any entity. Unless and to the extent specified otherwise by the Board, Substitute Stock Awards shall have the same terms and conditions as the stock awards they replace, except that (subject to the provisions of
Section 10) Substitute Stock Awards shall be Stock Awards to purchase Shares rather than equity securities of the granting entity and shall have a Purchase Price and other terms that, as determined by the Board in its sole and absolute
discretion, properly reflects the substitution. Any such Substitute Stock Award shall be effective on the effective date of the acquisition. 
 8.3 Cash Awards. Cash Awards may be granted either alone, in addition to, or in tandem with other Awards granted under this Plan. After the Administrator determines that it will offer a Cash Award, it shall advise the Awardee, by
means of an Award Agreement, of the terms, conditions and restrictions related to the Cash Award. The grant or vesting of a Cash Award may be made contingent on the achievement of Objectively Determinable Performance Conditions. 
 9. Exercise of Awards  
 9.1 In General. An
Award shall be exercisable in accordance with this Plan and the Award Agreement under which it is granted. 
 9.2 Time of Exercise.
Options and Stock Awards shall be considered exercised when the Company receives: (a) written notice of exercise from the person entitled to exercise the Option or Stock Award, (b) full payment, or provision for payment, in a form and
method approved by the Administrator, for the Shares for which the Option or Stock Award is being exercised, and (c) with respect to Nonstatutory Options, payment, or provision for payment, in a form approved by the Administrator, of all
applicable withholding taxes due upon exercise. An Award may not be exercised for a fraction of a Share. SARs shall be considered exercised when the Company receives written notice (in a form approved by the Administrator) of the exercise from the
person entitled to exercise the SAR. 
 9.3 Issuance of Award Shares. The Company shall issue Award Shares in the name of the person
properly exercising the Award. If the Awardee is that person and so requests, the Award Shares shall be issued in the name of the Awardee and the Awardee’s spouse. The Company shall 

  

 10 

 
endeavor to issue Award Shares promptly after an Award is exercised or after the Grant Date of a Stock Award, as applicable. Until Award Shares are actually
issued, as evidenced by the appropriate entry on the stock register of the Company or its transfer agent, the Awardee will not have the rights of a stockholder with respect to those Award Shares, even though the Awardee has completed all the steps
necessary to exercise the Award. No adjustment shall be made for any dividend, distribution, or other right for which the record date precedes the date the Award Shares are issued, except as provided in Section 10. 
 9.4 Termination  
 (a)
In General. Except as provided in an Award Agreement or in writing by the Administrator, including in an Award Agreement, and as otherwise provided in Sections 9.4(b), (c), (d) and (e) after an Awardee’s
Termination, the Awardee’s Awards shall be exercisable to the extent (but only to the extent) they are vested and exercisable on the date of that Termination and only during the 30 days after the Termination, but in no event after the
Expiration Date. To the extent the Awardee does not exercise an Award within the time specified for exercise, the Award shall automatically terminate. 
 (b) Leaves of Absence. Unless otherwise provided in the Award Agreement, no Award may be exercised more than three months after the beginning of a leave of absence, other than a personal or medical leave
approved by the Administrator. Awards shall not continue to vest during a leave of absence, unless otherwise determined by the Administrator with respect to an approved personal or medical leave with employment guaranteed upon return. 
 (c) Death or Disability. Unless otherwise provided by the Administrator, if an Awardee’s Termination is due to death or
disability (as determined by the Administrator with respect to all Awards other than Incentive Stock Options and as defined by Section 22(e) of the Code with respect to Incentive Stock Options), all Awards of that Awardee to the extent vested
and exercisable at the date of that Termination may be exercised for six months after that Termination, but in no event after the Expiration Date. In the case of Termination due to death, an Award may be exercised as provided in Section 17. In
the case of Termination due to disability, if a guardian or conservator has been appointed to act for the Awardee and been granted this authority as part of that appointment, that guardian or conservator may exercise the Award on behalf of the
Awardee. Death or disability occurring after an Awardee’s Termination shall not cause the Termination to be treated as having occurred due to death or disability. To the extent an Award is not so exercised within the time specified for its
exercise, the Award shall automatically terminate. 
 (d) Divestiture. If an Awardee’s Termination is due
to a Divestiture, the Board may take any one or more of the actions described in Section 10.3 or 10.4 with respect to the Awardee’s Awards. 
 (e) Administrator Discretion. Notwithstanding the provisions of Section 9.4 (a)-(e), the Plan Administrator shall have complete discretion, exercisable either at the time an Award is granted or at
any time while the Award remains outstanding, to: 
 (i) Extend the period of time for which the Award is to remain
exercisable, following the Awardee’s Termination, from the limited exercise period otherwise in effect for that Award to such greater period of time as the Administrator shall deem appropriate, but in no event beyond the Expiration Date; and/or

 (ii) Permit the Award to be exercised, during the applicable post-Termination exercise period, not only with respect to the
number of vested Shares for which such Award may be exercisable at the time of the Awardee’s Termination but also with respect to one or more additional installments in which the Awardee would have vested had the Awardee not been subject to
Termination. 
 (f) Consulting or Employment Relationship. Nothing in this Plan or in any Award Agreement, and
no Award or the fact that Award Shares remain subject to repurchase rights, shall: (A) interfere with or limit the right of the Company or any Affiliate to terminate the 

  

 11 

 
employment or consultancy of any Awardee at any time, whether with or without cause or reason, and with or without the payment of severance or any other
compensation or payment, or (B) interfere with the application of any provision in any of the Company’s or any Affiliate’s charter documents or Applicable Law relating to the election, appointment, term of office, or removal of a
Director. 
  

	10.	Certain Transactions and Events  

 10.1 In
General. Except as provided in this Section 10, no change in the capital structure of the Company, merger, sale or other disposition of assets or a subsidiary, change in control, issuance by the Company of shares of any class of securities
or securities convertible into shares of any class of securities, exchange or conversion of securities, or other transaction or event shall require or be the occasion for any adjustments of the type described in this Section 10. Additional
provisions with respect to the foregoing transactions are set forth in Section 14.3. 
 10.2 Changes in Capital Structure. In the
event of any stock split, reverse stock split, recapitalization, combination or reclassification of stock, stock dividend, spin-off, or similar change to the capital structure of the Company (not including a Fundamental Transaction or Change in
Control), the Board shall make whatever adjustments it concludes are appropriate to: (a) the number and type of Awards that may be granted under this Plan, (b) the number and type of Options that may be granted to any individual under this
Plan, (c) the terms of any SAR, (d) the Purchase Price of any Stock Award, (e) the Option Price and number and class of securities issuable under each outstanding Option, and (f) the repurchase price of any securities substituted
for Award Shares that are subject to repurchase rights. The specific adjustments shall be determined by the Board. Unless the Board specifies otherwise, any securities issuable as a result of any such adjustment shall be rounded down to the next
lower whole security. The Board need not adopt the same rules for each Award or each Awardee. 
 10.3 Fundamental Transactions. Except
for grants to Non-Employee Directors pursuant to Section 11 herein, in the event of (a) a merger or consolidation in which the Company is not the surviving corporation (other than a merger or consolidation with a wholly-owned subsidiary, a
reincorporation of the Company in a different jurisdiction, or other transaction in which there is no substantial change in the stockholders of the Company or their relative stock holdings and the Awards granted under this Plan are assumed,
converted or replaced by the successor corporation, which assumption shall be binding on all participants), (b) a merger in which the Company is the surviving corporation but after which the stockholders of the Company immediately prior to such
merger (other than any stockholder that merges, or which owns or controls another corporation that merges, with the Company in such merger) cease to own their shares or other equity interest in the Company, (c) the sale of all or substantially
all of the assets of the Company, or (d) the acquisition, sale, or transfer of more than 50% of the outstanding shares of the Company by tender offer or similar transaction (each, a “Fundamental Transaction”), any or all
outstanding Awards may be assumed, converted or replaced by the successor corporation (if any), which assumption, conversion or replacement shall be binding on all participants under this Plan. In the alternative, the successor corporation may
substitute equivalent Awards or provide substantially similar consideration to participants as was provided to stockholders (after taking into account the existing provisions of the Awards). The successor corporation may also issue, in place of
outstanding Shares held by the participants, substantially similar shares or other property subject to repurchase restrictions no less favorable to the participant. In the event such successor corporation (if any) does not assume or substitute
Awards, as provided above, pursuant to a transaction described in this Subsection 10.3, the vesting with respect to such Awards shall fully and immediately accelerate or the repurchase rights of the Company shall fully and immediately terminate, as
the case may be, so that the Awards may be exercised or the repurchase rights shall terminate before, or otherwise in connection with the closing or completion of the Fundamental Transaction or event, but then terminate. Notwithstanding anything in
this Plan to the contrary, the Committee may, in its sole discretion, provide that the vesting of any or all Award Shares subject to vesting or right of repurchase shall accelerate or lapse, as the case may be, upon a transaction described in this
Section 10.3. If the Committee exercises such discretion with respect to 

  

 12 

 
Options, such Options shall become exercisable in full prior to the consummation of such event at such time and on such conditions as the Committee
determines, and if such Options are not exercised prior to the consummation of the Fundamental Transaction, they shall terminate at such time as determined by the Committee. Subject to any greater rights granted to participants under the foregoing
provisions of this Section 10.3, in the event of the occurrence of any Fundamental Transaction, any outstanding Awards shall be treated as provided in the applicable agreement or plan of merger, consolidation, dissolution, liquidation, or sale
of assets. 
 10.4 Changes of Control. The Board may also, but need not, specify that other transactions or events constitute a
“Change in Control”. The Board may do that either before or after the transaction or event occurs. Examples of transactions or events that the Board may treat as Changes of Control are: (a) any person or entity,
including a “group” as contemplated by Section 13(d)(3) of the Exchange Act, acquires securities holding 30% or more of the total combined voting power or value of the Company, or (b) as a result of or in connection with a
contested election of Company Directors, the persons who were Company Directors immediately before the election cease to constitute a majority of the Board. In connection with a Change in Control, notwithstanding any other provision of this Plan,
the Board may, but need not, take any one or more of the actions described in Section 10.3. In addition, the Board may extend the date for the exercise of Awards (but not beyond their original Expiration Date). The Board need not adopt the same
rules for each Award or each Awardee. 
 10.5 Divestiture. If the Company or an Affiliate sells or otherwise transfers equity
securities of an Affiliate to a person or entity other than the Company or an Affiliate, or leases, exchanges or transfers all or any portion of its assets to such a person or entity, then the Board may specify that such transaction or event
constitutes a “Divestiture”. In connection with a Divestiture, notwithstanding any other provision of this Plan, the Board may, but need not, take one or more of the actions described in Section 10.3 or 10.4 with respect
to Awards of Award Shares held by, for example, Employees, Directors or Consultants for whom that transaction or event results in a Termination. The Board need not adopt the same rules for each Award or Awardee. 
 10.6 Dissolution. If the Company adopts a plan of dissolution, the Board may cause Awards to be fully vested and exercisable (but not after their
Expiration Date) before the dissolution is completed but contingent on its completion and may cause the Company’s repurchase rights on Award Shares to lapse upon completion of the dissolution. The Board need not adopt the same rules for each
Award or each Awardee. Notwithstanding anything herein to the contrary, in the event of a dissolution of the Company, to the extent not exercised before the earlier of the completion of the dissolution or their Expiration Date, Awards shall
terminate immediately prior to the dissolution. 
 11. Automatic Option Grants to Non-Employee Directors  
 11.1 Automatic Option Grants to Non-Employee Directors  
 (a) Grant Dates. Option grants to Non-Employee Directors shall be made on the dates specified below: 
 (i) Each Non-Employee Director who is first elected or appointed to the Board at any time after the effective date of this Plan shall
automatically be granted, on the date of such initial election or appointment, an Option to purchase 10,000 Shares (the “Initial Grant”). 
 (ii) Commencing in 2007, on the date of each annual stockholders meeting, each individual who is to continue to serve as a Non-Employee
Director shall automatically be granted an Option to purchase 5,000 Shares (the “Annual Grant”). 
 (b) Exercise Price.  
 (i) The Option Price shall be equal to one hundred percent (100%) of the Fair
Market Value of the Shares on the Option grant date. 
 (ii) The Option Price shall be payable in one or more of the
alternative forms authorized pursuant to Section 6.4. Except to the extent the sale and remittance procedure specified thereunder is utilized, payment of the Option Price must be made on the date of exercise. 
  

 13 

 (c) Option Term. Each Option shall have a term of ten (10) years measured
from the Option grant date. 
 (d) Exercise and Vesting of Options. Except as otherwise determined by the whole Board,
the Shares underlying each Option granted pursuant to Section 11.1 shall vest and be exercisable as set forth below. 
 (i) Initial Grant. The Shares underlying each Option issued pursuant to the Initial Grant shall vest and be exercisable as to 25% of the Shares at the end of each full succeeding year from the date of grant, rounded down to
the nearest whole Share, for so long as the Non-Employee Director continuously remains a Director of, or a Consultant to, the Company. 
 (ii) Annual Grant. The Shares underlying each Option issued pursuant to the Annual Grant shall vest and be exercisable as to 100% of the Shares at the earlier of (i) the first anniversary of the
date of grant and (ii) the date immediately preceding the date of the annual stockholders meeting for the year following the year of grant of the Option, so long as the Non-Employee Director continuously remains a Director of, or a Consultant
to, the Company through such date. 
 (e) Termination of Service. The following provisions shall govern the exercise of
any Options held by the Awardee at the time the Awardee ceases to serve as a Non-Employee Director, Employee or Consultant: 
 (i) In General. Except as otherwise provided in Section 10.3, after cessation of service (the “Cessation Date”), the Awardee’s Options shall be exercisable to the extent (but only to the
extent) they are vested on the Cessation Date and only during the 30 days after such Cessation Date, but in no event after the Expiration Date. To the extent the Awardee does not exercise an Option within the time specified for exercise, the Option
shall automatically terminate. 
 (ii) Death or Disability. If an Awardee’s cessation of service is due to
death or disability (as determined by the Board), all Options of that Awardee, to the extent exercisable upon such Cessation Date, may be exercised for one year after the Cessation Date, but in no event after the Expiration Date. In the case of a
cessation of service due to death, an Option may be exercised as provided in Section 16. In the case of a cessation of service due to disability, if a guardian or conservator has been appointed to act for the Awardee and been granted this
authority as part of that appointment, that guardian or conservator may exercise the Option on behalf of the Awardee. Death or disability occurring after an Awardee’s cessation of service shall not cause the cessation of service to be treated
as having occurred due to death or disability. To the extent an Option is not so exercised within the time specified for its exercise, the Option shall automatically terminate. 
 (f) Board Discretion. The Awards under this Section 11.1 are not intended as the exclusive Awards that may be made to
Non-Employee Directors under this Plan. The Board may, in its discretion, amend the Plan with respect to the terms of the Awards herein, may add or substitute other types of Awards or may temporarily or permanently suspend Awards hereunder, all
without approval of the Company’s stockholders. 
 11.2 Certain Transactions and Events  
 (a) In the event of a Fundamental Transaction while the Awardee remains a Non-Employee Director, the Shares at the time subject to each
outstanding Option held by such Awardee pursuant to Section 11, but not otherwise vested, shall automatically vest in full so that each such Option shall, immediately prior to the effective date of the Fundamental Transaction, become
exercisable for all the Shares as fully vested Shares and may be exercised for any or all 

  

 14 

 
of those vested Shares. Immediately following the consummation of the Fundamental Transaction, each Option shall terminate and cease to be outstanding,
except to the extent assumed by the successor corporation (or Affiliate thereof). 
 (b) In the event of a Change in Control
while the Awardee remains a Non-Employee Director, the Shares at the time subject to each outstanding Option held by such Awardee pursuant to Section 11, but not otherwise vested, shall automatically vest in full so that each such Option shall,
immediately prior to the effective date of the Change in Control, become exercisable for all the Shares as fully vested Shares and may be exercised for any or all of those vested Shares. Each such Option shall remain exercisable for such fully
vested Shares until the expiration or sooner termination of the Option term in connection with a Change in Control. 
 (c)
Each Option which is assumed in connection with a Fundamental Transaction shall be appropriately adjusted, immediately after such Fundamental Transaction, to apply to the number and class of securities which would have been issuable to the Awardee
in consummation of such Fundamental Transaction had the Option been exercised immediately prior to such Fundamental Transaction. Appropriate adjustments shall also be made to the Option Price payable per share under each outstanding Option, provided
the aggregate Option Price payable for such securities shall remain the same. To the extent the actual holders of the Company’s outstanding Common Stock receive cash consideration for their Common Stock in consummation of the Fundamental
Transaction, the successor corporation may, in connection with the assumption of the outstanding Options granted pursuant to Section 11, 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 such Fundamental Transaction. 
 (d) The grant of Options pursuant to
Section 11 shall in no way affect the right of the Company 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. 
 (e) The remaining terms of each Option granted pursuant to Section 11 shall, as applicable, be the same as
terms in effect for Awards granted under this Plan. Notwithstanding the foregoing, the provisions of Section 9.4 and Section 10 shall not apply to Options granted pursuant to Section 11. 
 11.3 Limited Transferability of Options. Each Option granted pursuant to Section 11 may be assigned in whole or in part during the
Awardee’s lifetime to one or more members of the Awardee’s family or to a trust established exclusively for one or more such family members or to an entity in which the Awardee is majority owner or to the Awardee’s former spouse, to
the extent such assignment is in connection with the Awardee’s estate or financial plan or pursuant to a Domestic Relations Order. The assigned portion may only be exercised by the person or persons who acquire a proprietary interest in the
Option pursuant to the assignment. The terms applicable to the assigned portion shall be the same as those in effect for the Option immediately prior to such assignment and shall be set forth in such documents issued to the assignee as the
Administrator may deem appropriate. The Awardee may also designate one or more persons as the beneficiary or beneficiaries of his or her outstanding Options under Section 11, and those Options shall, in accordance with such designation,
automatically be transferred to such beneficiary or beneficiaries upon the Awardee’s death while holding those Options. Such beneficiary or beneficiaries shall take the transferred Options subject to all the terms and conditions of the
applicable Award Agreement evidencing each such transferred Option, including (without limitation) the limited time period during which the Option may be exercised following the Awardee’s death. 
 12. Withholding and Tax Reporting  
 12.1 Tax
Withholding Alternatives  
 (a) General. Whenever Award Shares are issued or become free of restrictions,
the Company may require the Awardee to remit to the Company an amount sufficient to satisfy any 

  

 15 

 
applicable tax withholding requirement, whether the related tax is imposed on the Awardee or the Company. The Company shall have no obligation to deliver
Award Shares or release Award Shares from an escrow or permit a transfer of Award Shares until the Awardee has satisfied those tax withholding obligations. Whenever payment in satisfaction of Awards is made in cash, the payment will be reduced by an
amount sufficient to satisfy all tax withholding requirements. 
 (b) Method of Payment. The Awardee shall pay
any required withholding using the forms of consideration described in Section 6.4(b), except that, in the discretion of the Administrator, the Company may also permit the Awardee to use any of the forms of payment described in
Section 6.4(c). The Administrator, in its sole discretion, may also permit Award Shares to be withheld to pay required withholding. If the Administrator permits Award Shares to be withheld, the Fair Market Value of the Award Shares withheld, as
determined as of the date of withholding, shall not exceed the amount determined by the applicable minimum statutory withholding rates to the extent the Administrator determines such limit is necessary or advisable in light of generally accepted
accounting principles. 
 12.2 Reporting of Dispositions. Any holder of Option Shares acquired under an Incentive Stock Option shall
promptly notify the Administrator, following such procedures as the Administrator may require, of the sale or other disposition of any of those Option Shares if the disposition occurs during: (a) the longer of two years after the Grant Date of
the Incentive Stock Option and one year after the date the Incentive Stock Option was exercised, or (b) such other period as the Administrator has established. 
 13. Compliance with Law 
 The grant of Awards and the issuance and subsequent transfer of Award
Shares shall be subject to compliance with all Applicable Law, including all applicable securities laws. Awards may not be exercised, and Award Shares may not be transferred, in violation of Applicable Law. Thus, for example, Awards may not be
exercised unless: (a) a registration statement under the Securities Act is then in effect with respect to the related Award Shares, or (b) in the opinion of legal counsel to the Company, those Award Shares may be issued in accordance with
an applicable exemption from the registration requirements of the Securities Act and any other applicable securities laws. The failure or inability of the Company to obtain from any regulatory body the authority considered by the Company’s
legal counsel to be necessary or useful for the lawful issuance of any Award Shares or their subsequent transfer shall relieve the Company of any liability for failing to issue those Award Shares or permitting their transfer. As a condition to the
exercise of any Award or the transfer of any Award Shares, the Company may require the Awardee to satisfy any requirements or qualifications that may be necessary or appropriate to comply with or evidence compliance with any Applicable Law.

 14. Amendment or Termination of this Plan or Outstanding Awards  
 14.1 Amendment and Termination. The Board may at any time amend, suspend, or terminate this Plan. 
 14.2 Stockholder Approval. The Company shall obtain the approval of the Company’s stockholders for any amendment to this Plan if stockholder approval is necessary or desirable to comply with any Applicable Law or with the
requirements applicable to the grant of Awards intended to be Incentive Stock Options. The Board may also, but need not, require that the Company’s stockholders approve any other amendments to this Plan. In order for Awards to be exempt from
the rules of Code Section 162(m), the Board should consider seeking, but is not required to seek, shareholder approval of the Plan or any plan which awards shares from the Plan at least every five years. 
 14.3 Effect. No amendment, suspension, or termination of this Plan, and no modification of any Award even in the absence of an amendment,
suspension, or termination of this Plan, shall impair any existing contractual rights of any Awardee unless the affected Awardee consents to the amendment, suspension, termination, or modification. Notwithstanding anything herein to the contrary, no
such 

  

 16 

 
consent shall be required if the Board determines, in its sole and absolute discretion, that the amendment, suspension, termination, or modification:
(a) is required or advisable in order for the Company, this Plan or the Award to satisfy Applicable Law, to meet the requirements of any accounting standard or to avoid any adverse accounting treatment, or (b) in connection with any
transaction or event described in Section 10, is in the best interests of the Company or its stockholders. The Board may, but need not, take the tax or accounting consequences to affected Awardees into consideration in acting under the
preceding sentence. Those decisions shall be final, binding and conclusive. Termination of this Plan shall not affect the Administrator’s ability to exercise the powers granted to it under this Plan with respect to Awards granted before the
termination of Award Shares issued under such Awards even if those Award Shares are issued after the termination. 
 15. Reserved Rights 

15.1 Nonexclusivity of this Plan. This Plan shall not limit the power of the Company or any Affiliate to adopt other incentive arrangements
including, for example, the grant or issuance of stock options, stock, or other equity-based rights under other plans. 
 15.2 Unfunded
Plan. This Plan shall be unfunded. Although bookkeeping accounts may be established with respect to Awardees, any such accounts will be used merely as a convenience. The Company shall not be required to segregate any assets on account of this
Plan, the grant of Awards, or the issuance of Award Shares. The Company and the Administrator shall not be deemed to be a trustee of stock or cash to be awarded under this Plan. Any obligations of the Company to any Awardee shall be based solely
upon contracts entered into under this Plan, such as Award Agreements. No such obligations shall be deemed to be secured by any pledge or other encumbrance on any assets of the Company. Neither the Company nor the Administrator shall be required to
give any security or bond for the performance of any such obligations. 
 16. Special Arrangements Regarding Award Shares 
 16.1 Escrow of Stock Certificates. To enforce any restrictions on Award Shares, the Administrator may require their holder to deposit the
certificates representing Award Shares, with stock powers or other transfer instruments approved by the Administrator endorsed in blank, with the Company or an agent of the Company to hold in escrow until the restrictions have lapsed or terminated.
The Administrator may also cause a legend or legends referencing the restrictions to be placed on the certificates. 
 16.2 Repurchase
Rights  
 (a) General. If a Stock Award is subject to vesting conditions, the Company shall have the right,
during the seven months after the Awardee’s Termination, to repurchase any or all of the Award Shares that were unvested as of the date of that Termination. The repurchase price shall be determined by the Administrator in accordance with this
Section 16.2 which shall be either (i) the Purchase Price for the Award Shares (minus the amount of any cash dividends paid or payable with respect to the Award Shares for which the record date precedes the repurchase) or (ii) the
lower of (A) the Purchase Price for the Shares or (B) the Fair Market Value of those Award Shares as of the date of the Termination. The repurchase price shall be paid in cash. The Company may assign this right of repurchase. 

(b) Procedure. The Company or its assignee may choose to give the Awardee a written notice of exercise of its repurchase
rights under this Section 16.2. However, the Company’s failure to give such a notice shall not affect its rights to repurchase Award Shares. The Company must, however, tender the repurchase price during the period specified in this
Section 16.2 for exercising its repurchase rights in order to exercise such rights. 
 16.3 Market Standoff. Awardees shall be
prohibited from selling any Shares for a period of 180 days (but subject to such extension or extensions as may be required by the underwriters in order to publish research reports while complying with Rule 2711 of the National Association of
Securities Dealers, Inc.) after the effective date of the registration statement filed under the Securities Act with 

  

 17 

 
respect to the initial public offering of the Company’s stock. In addition, if requested by the Company or a representative of its underwriters,
Awardees shall be prohibited from selling some or all of their Shares during a period not to exceed 180 days (but subject to such extension or extensions as may be required by the underwriters in order to publish research reports while complying
with Rule 2711 of the National Association of Securities Dealers, Inc.) after the effective date of any other registration statement of the Company (other than a registration statement on Form S-8 or S-4 or an equivalent). 
 17. Beneficiaries  
 An Awardee may file a written
designation of one or more beneficiaries who are to receive the Awardee’s rights under the Awardee’s Awards after the Awardee’s death. An Awardee may change such a designation at any time by written notice. If an Awardee designates a
beneficiary, the beneficiary may exercise the Awardee’s Awards after the Awardee’s death. If an Awardee dies when the Awardee has no living beneficiary designated under this Plan, the Company shall allow the executor or administrator of
the Awardee’s estate to exercise the Award or, if there is none, the person entitled to exercise the Option under the Awardee’s will or the laws of descent and distribution. In any case, no Award may be exercised after its Expiration Date.

 18. Miscellaneous  
 18.1 Governing
Law. This Plan, the Award Agreements and all other agreements entered into under this Plan, and all actions taken under this Plan or in connection with Awards or Award Shares, shall be governed by the laws of the State of Delaware. 

18.2 Determination of Value. Fair Market Value shall be determined as follows: 
 (a) Listed Stock. If the Shares are traded on any established stock exchange or quoted on a national market system, Fair
Market Value shall be the closing sales price for the Shares as quoted on that stock exchange or system for the date the value is to be determined (the “Value Date”) as reported in The Wall Street Journal or a similar
publication. If no sales are reported as having occurred on the Value Date, Fair Market Value shall be that closing sales price for the last preceding trading day on which sales of Shares are reported as having occurred. If no sales are reported as
having occurred during the five trading days before the Value Date, Fair Market Value shall be the closing bid for Shares on the Value Date. If Shares are listed on multiple exchanges or systems, Fair Market Value shall be based on sales or bid
prices on the primary exchange or system on which Shares are traded or quoted. 
 (b) Stock Quoted by Securities
Dealer. If Shares are regularly quoted by a recognized securities dealer but selling prices are not reported on any established stock exchange or quoted on a national market system, Fair Market Value shall be the mean between the high bid
and low asked prices on the Value Date. If no prices are quoted for the Value Date, Fair Market Value shall be the mean between the high bid and low asked prices on the last preceding trading day on which any bid and asked prices were quoted.

 (c) No Established Market. If Shares are not traded on any established stock exchange or quoted on a national
market system and are not quoted by a recognized securities dealer, the Administrator (following guidelines established by the Board or Committee) will determine Fair Market Value in good faith. The Administrator will consider the following factors,
and any others it considers significant, in determining Fair Market Value: (i) the price at which other securities of the Company have been issued to purchasers other than Employees, Directors, or Consultants, (ii) the Company’s
stockholder’s equity, prospective earning power, dividend-paying capacity, and non-operating assets, if any, and (iii) any other relevant factors, including the economic outlook for the Company and the Company’s industry, the
Company’s position in that industry, the Company’s goodwill and other intellectual property, and the values of securities of other businesses in the same industry. 
  

 18 

 18.3 Reservation of Shares. During the term of this Plan, the Company shall at all times reserve
and keep available such number of Shares as are still issuable under this Plan. 
 18.4 Electronic Communications. Any Award
Agreement, notice of exercise of an Award, or other document required or permitted by this Plan may be delivered in writing or, to the extent determined by the Administrator, electronically. Signatures may also be electronic if permitted by the
Administrator. 
 18.5 Notices. Unless the Administrator specifies otherwise, any notice to the Company under any Option Agreement or
with respect to any Awards or Award Shares shall be in writing (or, if so authorized by Section 18.4, communicated electronically), shall be addressed to the Secretary of the Company, and shall only be effective when received by the Secretary
of the Company. 
 18.6 Conflict. In the event of any conflict between the terms of this Plan and any Award agreement or other
document under this Plan, the terms of the Plan shall prevail. Notwithstanding the foregoing, in connection with documents prepared for Awardees who are residents outside the United States, any terms of an Award Agreement which are necessary or
desirable to comply with the foreign jurisdiction of residence shall prevail even if they conflict with the terms of the Plan. 
  

 19Eagle Test Systems, Inc 2003 Stock Option and Grant  Plan

 Exhibit 10.35 
 EAGLE TEST SYSTEMS, INC. 
 2003 STOCK OPTION AND GRANT PLAN 
 SECTION 1. GENERAL PURPOSE OF THE PLAN; DEFINITIONS 
 The name of the plan is the Eagle Test Systems, Inc. 2003 Stock Option and Grant Plan (the “Plan”). The purpose of the Plan is to encourage and enable the officers, employees, directors, consultants and other key persons of Eagle
Test Systems, Inc., an Illinois corporation (the “Company”) and its Subsidiaries, upon whose judgment, initiative and efforts the Company largely depends for the successful conduct of its business to acquire a proprietary interest in the
Company. It is anticipated that providing such persons with a direct stake in the Company’s welfare will assure a closer identification of their interests with those of the Company, thereby stimulating their efforts on the Company’s behalf
and strengthening their desire to remain with the Company. 
 The following terms shall be defined as set forth below: 
 “Act” means the Securities Act of 1933, as amended, and the rules and regulations thereunder. 
 “Award” or “Awards,” except where referring to a particular category of grant under the Plan, shall include Incentive Stock
Options, Non-Qualified Stock Options, Restricted Stock Awards, Unrestricted Stock Awards, or any combination of the foregoing. 
 “Board” means the Board of Directors of the Company or its successor entity. 
 “Cause” means a
vote of the Board resolving that the grantee should be dismissed as a result of (i) the commission of any act by a grantee constituting financial dishonesty against the Company (which act would be chargeable as a crime under applicable law);
(ii) a grantee’s engaging in any other act of dishonesty, fraud, intentional misrepresentation, moral turpitude, illegality or harassment which, as determined in good faith by the Board, would: (A) materially adversely affect the
business or the reputation of the Company with its current or prospective customers, suppliers, lenders and/or other third parties with whom it does or might do business; or (B) expose the Company to a risk of civil or criminal legal damages,
liabilities or penalties; (iii) the repeated failure by a grantee to follow the directives of the Company’s chief executive officer or Board or (iv) any material misconduct, violation of the Company’s policies, or willful and
deliberate non-performance of duty by the grantee in connection with the business affairs of the Company. 
 “Code” means
the Internal Revenue Code of 1986, as amended, and any successor Code, and related rules, regulations and interpretations. 
 “Committee” has the meaning specified in Section 2. 
 “Effective Date” means the date on
which the Plan is approved by shareholders as set forth at the end of this Plan. 
 “Exchange Act” means the Securities
Exchange Act of 1934, as amended, and the rules and regulations thereunder. 
  

 1 

 “Fair Market Value” of the Stock on any given date means the fair market value of the
Stock determined in good faith by the Committee; provided, however, that (i) if the Stock trades on a national securities exchange, the Fair Market Value on any given date is the closing sale price on such date; (ii) if the Stock does not
trade on any national securities exchange but is admitted to trading on the National Association of Securities Dealers, Inc. Automated Quotation System (“NASDAQ”), the Fair Market Value on any given date is the closing sale price as
reported by NASDAQ on such date; or if no such closing sale price information is available, the average of the highest bid and lowest asked prices for the Stock reported on such date. For any date that is not a trading day, the Fair Market Value of
the Stock for such date will be determined by using the closing sale price or the average of the highest bid and lowest asked prices, as appropriate, for the immediately preceding trading day. The Committee can substitute a particular time of day or
other measure of closing sale price if appropriate because of changes in exchange or market procedures. Notwithstanding the foregoing, if the date for which Fair Market Value is determined is the first day when trading prices for the Stock are
reported on NASDAQ or trading on a national securities exchange, the Fair Market Value shall be the “Price to the Public” (or equivalent) set forth on the cover page for the final prospectus relating to the Company’s Initial Public
Offering. 
 “Good Reason” means the occurrence of any of the following events: (i) a substantial adverse change in the
nature or scope of the grantee’s responsibilities, authorities, powers, functions or duties; (ii) a reduction in the grantee’s annual base salary except for across-the-board salary reductions similarly affecting all or substantially
all management employees; or (iii) the relocation of the offices at which the grantee is principally employed to a location more than 50 miles from such offices. 
 “Incentive Stock Option” means any Stock Option designated and qualified as an “incentive stock option” as defined in Section 422 of the Code. 
 “Initial Public Offering” means the consummation of the first fully underwritten, firm commitment public offering pursuant to an
effective registration statement under the Act covering the offer and sale by the Company of its equity securities, as a result of or following which the shares of Stock shall be publicly held. 
 “Non-Qualified Stock Option” means any Stock Option that is not an Incentive Stock Option. 
 “Option” or “Stock Option” means any option to purchase shares of Stock granted pursuant to Section 5. 
 “Restricted Stock Award” means Awards granted pursuant to Section 6. 
 “Stock” means the Common Stock, no par value, of the Company, subject to adjustments pursuant to Section 3. 
 “Subsidiary” means any corporation or other entity (other than the Company) in any unbroken chain of corporations or other entities
beginning with the Company if each of the corporations or entities (other than the last corporation or entity in the unbroken chain) owns stock or other interests possessing 50 percent or more of the economic interest or 50 percent or more of the
total combined voting power of all classes of stock or other interests in one of the other corporations or entities in the chain. 
 “Unrestricted Stock Award” means any Award granted pursuant to Section 7. 
  

 2 

 SECTION 2. ADMINISTRATION OF PLAN; COMMITTEE AUTHORITY TO SELECT GRANTEES AND DETERMINE AWARDS 

 (a) Administration of Plan. The Plan shall be administered by the Board, or at the discretion of the Board, by a committee of the
Board, comprised, except as contemplated by Section 2(c), of not less than two Directors. All references herein to the Committee shall be deemed to refer to the group then responsible for administration of the Plan at the relevant time (i.e.,
either the Board of Directors or a committee or committees of the Board, as applicable). 
 (b) Powers of Committee. The Committee
shall have the power and authority to grant Awards consistent with the terms of the Plan, including the power and authority: 
 (i) to select
the individuals to whom Awards may from time to time be granted; 
 (ii) to determine the time or times of grant, and the extent, if any, of
Incentive Stock Options, Non-Qualified Stock Options, Restricted Stock Awards, Unrestricted Stock Awards, or any combination of the foregoing, granted to any one or more grantees; 
 (iii) to determine the number of shares of Stock to be covered by any Award; 
 (iv) to determine and modify from time to time the terms and conditions, including restrictions, not inconsistent with the terms of the Plan, of any
Award, which terms and conditions may differ among individual Awards and grantees, and to approve the form of written instruments evidencing the Awards; 
 (v) to accelerate at any time the exercisability or vesting of all or any portion of any Award; 
 (vi) to
impose any limitations on Awards granted under the Plan, including limitations on transfers, repurchase provisions and the like and to exercise repurchase rights or obligations; 
 (vii) subject to the provisions of Section 5(a)(ii), to extend at any time the period in which Stock Options may be exercised; 
 (viii) to determine at any time whether, to what extent, and under what circumstances distribution or the receipt of Stock and other amounts payable with
respect to an Award shall be deferred either automatically or at the election of the grantee and whether and to what extent the Company shall pay or credit amounts constituting interest (at rates determined by the Committee) or dividends or deemed
dividends on such deferrals; and 
 (ix) at any time to adopt, alter and repeal such rules, guidelines and practices for administration of
the Plan and for its own acts and proceedings as it shall deem advisable; to interpret the terms and provisions of the Plan and any Award (including related written instruments); to make all determinations it deems advisable for the administration
of the Plan; to decide all disputes arising in connection with the Plan; and to otherwise supervise the administration of the Plan. 
 All
decisions and interpretations of the Committee shall be binding on all persons, including the Company and Plan grantees. 
  

 3 

 (c) Delegation of Authority to Grant Awards. The Committee, in its discretion, may delegate to the
Chief Executive Officer of the Company all or part of the Committee’s authority and duties with respect to the granting of Awards at Fair Market Value, and in the event of such delegation, such Chief Executive Officer shall be deemed a
one-person Committee of the Board. Any such delegation by the Committee shall include a limitation as to the amount of Awards that may be granted during the period of the delegation and shall contain guidelines as to the determination of the
exercise price of any Option, the conversion ratio or price of other Awards and the vesting criteria. The Committee may revoke or amend the terms of a delegation at any time but such action shall not invalidate any prior actions of the
Committee’s delegate or delegates that were consistent with the terms of the Plan. 
 (d) Indemnification. Neither the Board nor
the Committee, nor any member of either or any delegatee thereof, shall be liable for any act, omission, interpretation, construction or determination made in good faith in connection with the Plan, and the members of the Board and the Committee
(and any delegate thereof) shall be entitled in all cases to indemnification and reimbursement by the Company in respect of any claim, loss, damage or expense (including, without limitation, reasonable attorneys’ fees) arising or resulting
therefrom to the fullest extent permitted by law and/or under any directors’ and officers’ liability insurance coverage which may be in effect from time to time. 
 SECTION 3. STOCK ISSUABLE UNDER THE PLAN; MERGERS; SUBSTITUTION 
 (a) Stock Issuable.
The maximum number of shares of Stock reserved and available for issuance under the Plan shall be 273,516 shares of Common Stock, subject to adjustment as provided in Section 3(b). For purposes of this limitation, the shares of Stock underlying
any Awards that are forfeited, canceled, reacquired by the Company, satisfied without the issuance of Stock or otherwise terminated (other than by exercise) shall be added back to the shares of Stock available for issuance under the Plan. Subject to
such overall limitation, shares of Stock may be issued up to such maximum number pursuant to any type or types of Award; provided, however, that from and after the date the Company becomes subject to the deduction limit imposed by
Section 162(m) of the Code, Stock Options with respect to no more than the number of shares of Stock allowed thereunder may be granted to any one individual grantee during any one calendar year period. The shares available for issuance under
the Plan may be authorized but unissued shares of Stock or shares of Stock reacquired by the Company and held in its treasury. 
 (b)
Changes in Stock. Subject to Section 3(c) hereof, if, as a result of any reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split or other similar change in the Company’s capital stock,
the outstanding shares of Stock are increased or decreased or are exchanged for a different number or kind of shares or other securities of the Company, or additional shares or new or different shares or other securities of the Company or other
non-cash assets are distributed with respect to such shares of Stock or other securities, or, if, as a result of any merger, consolidation or sale of all or substantially all of the assets of the Company, the outstanding shares of Stock are
converted into or exchanged for a different number or kind of securities of the Company or any successor entity (or a parent or subsidiary thereof), the Committee shall make an appropriate or proportionate adjustment in (i) the maximum number
of shares reserved for issuance under the Plan, (ii) the number of Stock Options that can be granted to any one individual grantee, (iii) the number and kind of shares or other securities subject to any then outstanding Awards under the
Plan, (iv) the repurchase price per share subject to each outstanding Restricted Stock Award, and (v) the exercise price and/or exchange price for each share subject to any then outstanding Stock Options under the Plan, without changing
the aggregate exercise price (i.e., the exercise price multiplied by the number of Stock Options) as to 

  

 4 

 
which such Stock Options remain exercisable. The adjustment by the Committee shall be final, binding and conclusive. No fractional shares of Stock shall be
issued under the Plan resulting from any such adjustment, but the Committee in its discretion may make a cash payment in lieu of fractional shares. 
 The Committee may also adjust the number of shares subject to outstanding Awards and the exercise price and the terms of outstanding Awards to take into consideration material changes in accounting practices or principles, extraordinary
dividends, acquisitions or dispositions of stock or property or any other event if it is determined by the Committee that such adjustment is appropriate to avoid distortion in the operation of the Plan, provided that no such adjustment shall be made
in the case of an Incentive Stock Option, without the consent of the grantee, if it would constitute a modification, extension or renewal of the Option within the meaning of Section 424(h) of the Code. 
 (c) Mergers and Other Sale Events. In the case of and subject to the consummation of (i) the dissolution or liquidation of the Company,
(ii) the sale of all or substantially all of the assets of the Company on a consolidated basis to an unrelated person or entity, (iii) a merger, reorganization or consolidation in which the outstanding shares of Stock are converted into or
exchanged for securities of the successor entity and the holders of the Company’s outstanding voting power immediately prior to such transaction do not own a majority of the outstanding voting power of the successor entity immediately upon
completion of such transaction, (iv) the sale of all or a majority of the outstanding capital stock of the Company to an unrelated person or entity or (v) any other transaction in which, the owners of the Company’s outstanding voting
power prior to such transaction do not own at least a majority of the outstanding voting power of the successor entity immediately upon completion of the transaction (in each case, regardless of the form thereof, a “Sale Event”), unless
otherwise provided in the Award agreement, the Plan and all outstanding Options issued hereunder shall terminate upon the effective time of any such Sale Event, unless provision is made in connection with such transaction in the sole discretion of
the parties thereto for the assumption or continuation of Options theretofore granted (after taking into account any acceleration hereunder) by the successor entity, or the substitution of such Options with new Options of the successor entity or a
parent or subsidiary thereof, with such adjustment as to the number and kind of shares and the per share exercise prices as such parties shall agree (after taking into account any acceleration if any, hereunder). In the event of such termination,
each grantee shall be permitted, within a specified period of time prior to the consummation of the Sale Event as determined by the Committee, to exercise all outstanding Options held by such grantee that are then exercisable or will become
exercisable as of the effective time of the Sale Event; provided, however, that the exercise of Options not exercisable prior to the Sale Event shall be subject to the consummation of the Sale Event. (The treatment of Restricted Stock Award in
connection with any such transaction shall be as specified in the relevant Award agreement.) Notwithstanding anything herein to the contrary, in the event that provision is made in connection with the Sale Event for the assumption or continuation of
Awards, or the substitution of such Awards with new Awards of the successor entity or parent thereof, then, except as the Committee may otherwise determine with respect to particular Awards, any Award so assumed or continued or substituted therefor
shall be deemed vested and exercisable in full upon the date on which the grantee’s employment or service relationship with the Company and its subsidiaries or successor entity, as the case may be, terminates if such termination occurs
(i) within 18 months after such Sale Event and (ii) such termination is by the Company or its Subsidiaries or successor entity without Cause or by the grantee for Good Reason. Notwithstanding anything to the contrary in this Plan or in any
Award, in the event of a Sale Event pursuant to which holders of the Stock of the Company will receive upon consummation thereof a cash payment for each share surrendered in the Sale Event, the Company shall have the 

  

 5 

 
right, but not the obligation, to make or provide for a cash payment to the grantees holding vested Options, in exchange for the cancellation thereof, in an
amount equal to the difference between (A) the value as determined by the Committee of the consideration payable per share of Stock pursuant to the Sale Event (the “Sale Price”) times the number of shares of Stock subject to such
outstanding Options (to the extent then exercisable at prices not in excess of the Sale Price) and (B) the aggregate exercise price of all such outstanding Options. 
 (d) Substitute Awards. The Committee may grant Awards under the Plan in substitution for stock and stock based awards held by employees, directors or other key persons of another corporation in connection with
a merger or consolidation of the employing corporation with the Company or a Subsidiary or the acquisition by the Company or a Subsidiary of property or stock of the employing corporation. The Committee may direct that the substitute awards be
granted on such terms and conditions as the Committee considers appropriate in the circumstances. Any substitute Awards granted under the Plan shall not count against the share limitation set forth in Section 3(a). 
 (e) The terms of any Award approved by the Committee shall govern such Award to the extent of any inconsistency between the Plan, such Award being deemed
an amendment to the Plan with respect to such Award only. 
 SECTION 4. ELIGIBILITY 
 Grantees in the Plan will be such full or part-time officers, employees, directors, consultants and other key persons (including prospective employees) of
the Company and its Subsidiaries who are responsible for, or contribute to, the management, growth or profitability of the Company and its Subsidiaries as are selected from time to time by the Committee in its sole discretion. 
 SECTION 5. STOCK OPTIONS 
 Any Stock Option
granted under the Plan shall be pursuant to a Stock Option Agreement which shall be in such form as the Committee may from time to time approve. Option agreements need not be identical. 
 Stock Options granted under the Plan may be either Incentive Stock Options or Non-Qualified Stock Options. Incentive Stock Options may be granted only to
employees of the Company or any Subsidiary that is a “subsidiary corporation” within the meaning of Section 424(f) of the Code. To the extent that any Option does not qualify as an Incentive Stock Option, it shall be deemed a
Non-Qualified Stock Option. 
 No Incentive Stock Option shall be granted under the Plan after the date which is ten years from the date the
Plan is approved by the Board. 
 (a) Terms of Stock Options. Stock Options granted under the Plan shall be subject to the following
terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Committee shall deem desirable. If the Committee so determines, Stock Options may be granted in lieu of cash
compensation at the grantee’s election, subject to such terms and conditions as the Committee may establish, as well as in addition to other compensation. 
  

 6 

 (i) Exercise Price. The exercise price per share for the Stock covered by a Stock Option shall be
determined by the Committee at the time of grant but shall not be less than 100 percent of the Fair Market Value on the date of grant in the case of Incentive Stock Options. If an employee owns or is deemed to own (by reason of the attribution rules
of Section 424(d) of the Code) more than 10 percent of the combined voting power of all classes of stock of the Company or any parent or subsidiary corporation and an Incentive Stock Option is granted to such employee, the option price of such
Incentive Stock Option shall be not less than 110 percent of the Fair Market Value on the grant date. 
 (ii) Option Term. The term of
each Stock Option shall be fixed by the Committee, but no Stock Option shall be exercisable more than ten years after the date the Stock Option is granted. If an employee owns or is deemed to own (by reason of the attribution rules of
Section 424(d) of the Code) more than 10 percent of the combined voting power of all classes of stock of the Company or any parent or subsidiary corporation and an Incentive Stock Option is granted to such employee, the term of such Stock
Option shall be no more than five years from the date of grant. 
 (iii) Exercisability; Rights of a Stockholder. Stock Options shall
become exercisable at such time or times, whether or not in installments, as shall be determined by the Committee at or after the grant date. The Committee may at any time accelerate the exercisability of all or any portion of any Stock Option. An
grantee shall have the rights of a shareholder only as to shares acquired upon the exercise of a Stock Option and not as to unexercised Stock Options. 
 (iv) Method of Exercise. Stock Options may be exercised in whole or in part, by giving written notice of exercise to the Company, specifying the number of shares to be purchased. Payment of the purchase price
may be made by one or more of the following methods to the extent provided in the Award agreement or as otherwise provided by the Committee: 
 (A) In cash, by certified or bank check, or other instrument acceptable to the Committee in U.S. funds payable to the order of the Company in an amount equal to the purchase price of such Option Shares; 
 (B) If permitted by the Committee, through the delivery (or attestation to the ownership) of shares of Stock that have been purchased by
the grantee on the open market or have been beneficially owned by the grantee for at least six months and are not then subject to restrictions under any Company plan. Such surrendered shares shall be valued at Fair Market Value on the exercise date;

 (C) If permitted by the Committee, by the grantee delivering to the Company a properly executed exercise notice together
with irrevocable instructions to a broker to promptly deliver to the Company cash or a check payable and acceptable to the Company to pay the purchase price; provided that in the event the grantee chooses to pay the purchase price as so provided,
the grantee and the broker shall comply with such procedures and enter into such agreements of indemnity and other agreements as the Committee shall prescribe as a condition of such payment procedure. 
 Payment instruments will be received subject to collection. No certificates for shares of Stock so purchased will be issued to grantee until the Company
has completed all steps required by law to be taken in connection with the issuance and sale of the shares, including without limitation (i) receipt of a representation from the grantee at the time of exercise of the Option that the grantee is
purchasing the shares for the grantee’s own account and not with a view to any sale or distribution 

  

 7 

 
thereof, (ii) the legending of any certificate representing the shares to evidence the foregoing representations and restrictions, and
(iii) obtaining from grantee payment or provision for all withholding taxes due as a result of the exercise of the Option. The delivery of certificates representing the shares of Stock to be purchased pursuant to the exercise of a Stock Option
will be contingent upon receipt from the grantee (or a purchaser acting in his or her stead in accordance with the provisions of the Stock Option) by the Company of the full purchase price for such shares and the fulfillment of any other
requirements contained in the Option Award agreement or applicable provisions of laws. In the event an grantee chooses to pay the purchase price by previously-owned shares of Stock through the attestation method, the shares of Stock transferred to
the grantee upon the exercise of the Stock Option shall be net of the number of shares attested to. 
 (b) Annual Limit on Incentive Stock
Options. To the extent required for “incentive stock option” treatment under Section 422 of the Code, the aggregate Fair Market Value (determined as of the time of grant) of the shares of Stock with respect to which Incentive
Stock Options granted under this Plan and any other plan of the Company or its parent and subsidiary corporations become exercisable for the first time by an grantee during any calendar year shall not exceed $100,000. To the extent that any Stock
Option exceeds this limit, it shall constitute a Non-Qualified Stock Option. 
 (c) Non-transferability of Options. No Stock Option
shall be transferable by the grantee otherwise than by will or by the laws of descent and distribution and all Stock Options shall be exercisable, during the grantee’s lifetime, only by the grantee, or by the grantee’s legal representative
or guardian in the event of the grantee’s incapacity. Notwithstanding the foregoing, the Committee, in its sole discretion, may provide in the Award agreement regarding a given Option that the grantee may transfer, without consideration for the
transfer, his or her Non-Qualified Stock Options to members of his or her immediate family, to trusts for the benefit of such family members, or to partnerships in which such family members are the only partners, provided that the transferee agrees
in writing with the Company to be bound by all of the terms and conditions of this Plan and the applicable Option. 
 SECTION 6. RESTRICTED STOCK
AWARDS 
 (a) Nature of Restricted Stock Awards. A Restricted Stock Award is an Award pursuant to which the Company may, in its
sole discretion, grant or sell, at such purchase price as determined by the Committee, in its sole discretion, shares of Stock subject to such restrictions and conditions as the Committee may determine at the time of grant (“Restricted
Stock”), which purchase price shall be payable in cash or other form of consideration acceptable to the Committee. Conditions may be based on continuing employment (or other service relationship) and/or achievement of pre-established
performance goals and objectives. The terms and conditions of each such agreement shall be determined by the Committee, and such terms and conditions may differ among individual Awards and grantees. 
 (b) Rights as a Stockholder. Upon execution of a written instrument setting forth the Restricted Stock Award and payment of any applicable
purchase price, a grantee shall have the rights of a stockholder with respect to the voting of the Restricted Stock, subject to such conditions contained in the written instrument evidencing the Restricted Stock Award. Unless the Committee shall
otherwise determine, certificates evidencing the Restricted Stock shall remain in the possession of the Company until such Restricted Stock is vested as provided in subsection (d) below of this Section, and the grantee shall be required, as a
condition of the grant, to deliver to the Company a stock power endorsed in blank. 
  

 8 

 (c) Restrictions. Restricted Stock may not be sold, assigned, transferred, pledged or otherwise
encumbered or disposed of except as specifically provided herein or in the Restricted Stock Award agreement. If a grantee’s employment (or other service relationship) with the Company and its Subsidiaries terminates under the conditions
specified in the relevant instrument relating to the Award, or upon such other event or events as may be stated in the instrument evidencing the Award, the Company or its assigns shall have the right or shall agree, as may be specified in the
relevant instrument, to repurchase some or all of the shares of Stock subject to the Award at such purchase price as is set forth in such instrument. 
 (d) Vesting of Restricted Stock. The Committee at the time of grant shall specify the date or dates and/or the attainment of pre-established performance goals, objectives and other conditions on which
Restricted Stock shall become vested, subject to such further rights of the Company or its assigns as may be specified in the instrument evidencing the Restricted Stock Award. 
 (e) Waiver, Deferral and Reinvestment of Dividends. The Restricted Stock Award agreement may require or permit the immediate payment, waiver,
deferral or investment of dividends paid on the Restricted Stock. 
 SECTION 7. UNRESTRICTED STOCK AWARDS 
 (a) Grant or Sale of Unrestricted Stock. The Committee may, in its sole discretion, grant (or sell at par value or such higher purchase price
determined by the Committee) an Unrestricted Stock Award to any grantee, pursuant to which such grantee may receive shares of Stock free of any vesting restrictions (“Unrestricted Stock”) under the Plan. Unrestricted Stock Awards may be
granted or sold as described in the preceding sentence in respect of past services or other valid consideration, or in lieu of any cash compensation due to such individual. 
 (b) Elections to Receive Unrestricted Stock In Lieu of Compensation. Upon the request of a grantee and with the consent of the Committee, each
such grantee may, pursuant to an advance written election delivered to the Company no later than the date specified by the Committee, receive a portion of the cash compensation otherwise due to such grantee in the form of shares of Unrestricted
Stock either currently or on a deferred basis. 
 (c) Restrictions on Transfers. The right to receive shares of Unrestricted Stock on
a deferred basis may not be sold, assigned, transferred, pledged or otherwise encumbered, other than by will or the laws of descent and distribution. 
 SECTION 8. TAX WITHHOLDING 
 (a) Payment by Grantee. Each grantee shall, no later than the date as of which the value
of an Award or of any Stock or other amounts received thereunder first becomes includable in the gross income of the grantee for Federal income tax purposes, pay to the Company, or make arrangements satisfactory to the Committee regarding payment
of, any federal, state, or local taxes of any kind required by law to be withheld with respect to such income. The Company and its Subsidiaries shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any
kind otherwise due to the grantee. The Company’s obligation to deliver stock certificates to any grantee is subject to and conditioned on tax obligations being satisfied by the grantee. 
  

 9 

 (b) Payment in Stock. Subject to approval by the Committee, a grantee may elect to have the
minimum required tax withholding obligation satisfied, in whole or in part, by (i) authorizing the Company to withhold from shares of Stock to be issued pursuant to any Award a number of shares with an aggregate Fair Market Value (as of the
date the withholding is effected) that would satisfy the withholding amount due, or (ii) transferring to the Company shares of Stock owned by the grantee with an aggregate Fair Market Value (as of the date the withholding is effected) that
would satisfy the minimum withholding amount due. 
 SECTION 9. TRANSFER, LEAVE OF ABSENCE, ETC. 
 For purposes of the Plan, the following events shall not be deemed a termination of employment: 
 (a) a transfer to the employment of the Company from a Subsidiary or from the Company to a Subsidiary, or from one Subsidiary to another; or 

(b) an approved leave of absence for military service or sickness, or for any other purpose approved by the Company, if the employee’s right to
re-employment is guaranteed either by a statute or by contract or under the policy pursuant to which the leave of absence was granted or if the Committee otherwise so provides in writing. 
 SECTION 10. AMENDMENTS AND TERMINATION 
 The
Board may, at any time, amend or discontinue the Plan and the Committee may, at any time, amend or cancel any outstanding Award (or provide substitute Awards at the same or reduced exercise or purchase price or with no exercise or purchase price in
a manner not inconsistent with the terms of the Plan), but such price, if any, must satisfy the requirements that would apply to the substitute or amended Award if it were then initially granted under this Plan for the purpose of satisfying changes
in law or for any other lawful purpose, but no such action shall adversely affect rights under any outstanding Award without the holder’s consent. If and to the extent determined by the Committee to be required by the Code to ensure that
Incentive Stock Options granted under the Plan are qualified under Section 422 of the Code, Plan amendments shall be subject to approval by the Company’s shareholders who would be eligible to vote at a meeting of shareholders on such
matter. Nothing in this Section 10 shall limit the Board’s or Committee’s authority to take any action permitted pursuant to Section 3(c). 
 SECTION 11. STATUS OF PLAN 
 With respect to the portion of any Award that has not been exercised and any payments in
cash, Stock or other consideration not received by a grantee, a grantee shall have no rights greater than those of a general creditor of the Company unless the Committee shall otherwise expressly determine in connection with any Award or Awards. In
its sole discretion, the Committee may authorize the creation of trusts or other arrangements to meet the Company’s obligations to deliver Stock or make payments with respect to Awards hereunder, provided that the existence of such trusts or
other arrangements is consistent with the foregoing sentence. 
 SECTION 12. GENERAL PROVISIONS 
 (a) No Distribution; Compliance with Legal Requirements. The Committee may require each person acquiring Stock pursuant to an Award to represent to
and agree with the Company in writing that such person is acquiring the shares without a view to distribution thereof. No shares 

  

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of Stock shall be issued pursuant to an Award until all applicable securities law and other legal and stock exchange or similar requirements have been
satisfied. The Committee may require the placing of such stop-orders and restrictive legends on certificates for Stock and Awards as it deems appropriate. 
 (b) Delivery of Stock Certificates. Stock certificates to grantees under this Plan shall be deemed delivered for all purposes when the Company or a stock transfer agent of the Company shall have mailed such
certificates in the United States mail, addressed to the grantee, at the grantee’s last known address on file with the Company. 
 (c)
Other Compensation Arrangements; No Employment Rights. Nothing contained in this Plan shall prevent the Board from adopting other or additional compensation arrangements, including trusts, and such arrangements may be either generally
applicable or applicable only in specific cases. The adoption of this Plan and the grant of Awards do not confer upon any employee any right to continued employment with the Company or any Subsidiary. 
 (d) Trading Policy Restrictions. Option exercises and other Awards under the Plan shall be subject to such Company’s
insider-trading-policy-related restrictions, terms and conditions as may be established by the Committee, or in accordance with policies set by the Committee, from time to time. 
 (e) Loans to Award Recipients. The Company shall have the authority to make loans to recipients of Awards hereunder (including to facilitate the
purchase of shares) and shall further have the authority to issue shares for promissory notes hereunder. 
 (f) Designation of
Beneficiary. Each grantee to whom an Award has been made under the Plan may designate a beneficiary or beneficiaries to exercise any Award or receive any payment under any Award payable on or after the grantee’s death. Any such designation
shall be on a form provided for that purpose by the Committee and shall not be effective until received by the Committee. If no beneficiary has been designated by a deceased grantee, or if the designated beneficiaries have predeceased the grantee,
the beneficiary shall be the grantee’s estate. 
 SECTION 13. EFFECTIVE DATE OF PLAN 
 This Plan shall become effective upon approval by the shareholders in accordance with applicable law. Subject to such approval by the shareholders and to
the requirement that no Stock may be issued hereunder prior to such approval, Stock Options and other Awards may be granted hereunder on and after adoption of this Plan by the Board. 
 SECTION 14. GOVERNING LAW 
 This Plan and all Awards and actions taken thereunder shall be
governed by Illinois law, applied without regard to conflict of law principles. 
 ADOPTED BY BOARD OF DIRECTORS: September 29, 2003 
 APPROVED BY SHAREHOLDERS: September 29, 2003 
  

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