Document:

exhibit10_15.htm

    Exhibit
10.15

    LEXAR
MEDIA, INC.

    

    2000
EQUITY INCENTIVE PLAN

    

    As
Adopted January 21, 2000

    As
Amended April 20, 2004

    As
Amended February 10, 2006

    As
Amended December 11, 2008

    

    

    1.           
 PURPOSE.
The purpose of this Plan is to provide incentives to attract, retain and
motivate eligible persons whose present and potential contributions are
important to the success of the Company, its Parent and Subsidiaries, by
offering them an opportunity to participate in the Company's future performance
through awards of Options, Restricted Stock and Stock Bonuses. Capitalized terms
not defined in the text are defined in Section 23.

    

    2.       
     SHARES
SUBJECT TO THE PLAN.

    

    2.1           Number of Shares
Available. Subject to Sections 2.2 and 18, the total number of Shares
reserved and available for grant and issuance pursuant to this Plan will be
8,000,000 Shares plus Shares that are subject to: (a) issuance upon exercise of
an Option but cease to be subject to such Option for any reason other than
exercise of such Option; (b) an Award granted hereunder but are forfeited or are
repurchased by the Company at the original issue price; and (c) an Award that
otherwise terminates without Shares being issued. In addition, any authorized
shares not issued or subject to outstanding grants under the Company's 1996
Stock Option/Stock Issuance Plan (the "Prior
Plan") on the Effective Date (as defined below) and any shares issued
under the Prior Plan that are forfeited or repurchased by the Company or that
are issuable upon exercise of options granted pursuant to the Prior Plan that
expire or become unexercisable for any reason without having been exercised in
full, will no longer be available for grant and issuance under the Prior Plan,
but will be available for grant and issuance under this Plan. In addition, on
each January 1, the aggregate number of Shares reserved and available for grant
and issuance pursuant to this Plan will be increased automatically by a number
of Shares equal to 5% of the total outstanding shares of the Company as of the
immediately preceding December 31, provided that no more than 50,000,000 shares
shall be issued as ISOs (as defined in Section 5 below). At all times the
Company shall reserve and keep available a sufficient number of Shares as shall
be required to satisfy the requirements of all outstanding Options granted under
this Plan and all other outstanding but unvested Awards granted under this
Plan.

    

    2.2           Adjustment of Shares.
In the event that the number of outstanding shares is changed by a stock
dividend, recapitalization, stock split, reverse stock split, subdivision,
combination, reclassification or similar change in the capital structure of the
Company without consideration, then (a) the number of Shares reserved for
issuance under this Plan, (b) the number of Shares that may be granted pursuant
to Sections 3 and 9 below, (c) the Exercise Prices of and number of Shares
subject to outstanding Options, and (d) the number of Shares subject to other
outstanding Awards will be proportionately adjusted, subject to any required
action by the Board or the stockholders of the Company and compliance with
applicable securities laws; provided, however, that
fractions of a Share will not be issued but will either be replaced by a cash
payment equal to the Fair Market Value of such fraction of a Share or will be
rounded up to the nearest whole Share, as determined by the
Committee.

    

    3.         
   ELIGIBILITY.
ISOs (as defined in Section 5 below) may be granted only to employees (including
officers and directors who are also employees) of the Company or of a Parent or
Subsidiary of the Company. All other Awards may be granted to employees,
officers, directors, consultants, independent contractors and advisors of the
Company or any Parent or Subsidiary of the Company; provided such
consultants, contractors and advisors render bona fide services not in
connection with the offer and sale of securities in a capital-raising
transaction. No person will be eligible to receive more than 2,000,000 Shares in
any calendar year under this Plan pursuant to the grant of Awards hereunder,
other than new employees of the Company or of a Parent or Subsidiary of the
Company (including new employees who are also officers and directors of the
Company or any Parent or Subsidiary of the Company), who are eligible to receive
up to a maximum of 3,000,000 Shares in the calendar year in which they commence
their employment. A person may be granted more than one Award under this
Plan.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.      
      ADMINISTRATION.

    

    4.1           Committee Authority.
This Plan will be administered by the Committee or by the Board acting as the
Committee. Except for automatic grants to Outside Directors pursuant to Section
9 hereof, and subject to the general purposes, terms and conditions of this
Plan, and to the direction of the Board, the Committee will have full power to
implement and carry out this Plan. Except for automatic grants to Outside
Directors pursuant to Section 9 hereof, the Committee will have the authority
to:

    

    
      (a)     construe
and interpret this Plan, any Award Agreement and any other agreement or document
executed pursuant to this Plan;

    

    

    
      (b)     prescribe,
amend and rescind rules and regulations relating to this Plan or any
Award;

    

    

    
      (c)     select persons to receive
Awards;

    

    
 

    
      (d)     determine
the form and terms of Awards;

    

    

    
      (e)     determine the number of
Shares or other consideration subject to Awards;

    

    

    
      (f)      determine
whether Awards will be granted singly, in combination with, in tandem with, in
replacement of, or as alternatives to, other Awards under this Plan or any other
incentive or compensation plan of the Company or any Parent or Subsidiary of the
Company;

    

    

    
      (g)     grant
waivers of Plan or Award conditions;

    

    

    
      (h)     determine
the vesting, exercisability and payment of Awards;

    

    

    
      (i)      correct
any defect, supply any omission or reconcile any inconsistency in this Plan, any
Award or any Award Agreement;

    

    

    
      (j)      determine whether an
Award has been earned; and

    

    

    
      (k)      make all other
determinations necessary or advisable for the administration of this
Plan.

    

    

    4.2           Committee Discretion.
Except for automatic grants to Outside Directors pursuant to Section 9 hereof,
any determination made by the Committee with respect to any Award will be made
in its sole discretion at the time of grant of the Award or, unless in
contravention of any express term of this Plan or Award, at any later time, and
such determination will be final and binding on the Company and on all persons
having an interest in any Award under this Plan. The Committee may delegate to
one or more officers of the Company the authority to grant an Award under this
Plan to Participants who are not Insiders of the Company.

    

    5.         
   OPTIONS.
The Committee may grant Options to eligible persons and will determine whether
such Options will be Incentive Stock Options within the meaning of the Code
("ISO") or
Nonqualified Stock Options ("NQSOs"),
the number of Shares subject to the Option, the Exercise Price of the Option,
the period during which the Option may be exercised, and all other terms and
conditions of the Option, subject to the following:

    

    5.1           Form of Option Grant.
Each Option granted under this Plan will be evidenced by an Award Agreement
which will expressly identify the Option as an ISO or an NQSO ("Stock Option
Agreement"), and, except as otherwise required by the terms of Section 9
hereof, will be in such form and contain such provisions (which need not be the
same for each Participant) as the Committee may from time to time approve, and
which will comply with and be subject to the terms and conditions of this
Plan.

    

    5.2           Date of Grant. The
date of grant of an Option will be the date on which the Committee makes the
determination to grant such Option, unless otherwise specified by the Committee.
The Stock Option Agreement and a copy of this Plan will be delivered to the
Participant within a reasonable time after the granting of the
Option.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    5.3           Exercise Period.
Options may be exercisable within the times or upon the events determined by the
Committee as set forth in the Stock Option Agreement governing such Option;
provided, however, that no
Option will be exercisable after the expiration of ten (10) years from the date
the Option is granted; and provided further that
no ISO granted to a person who directly or by attribution owns more than ten
percent (10%) of the total combined voting power of all classes of stock of the
Company or of any Parent or Subsidiary of the Company ("Ten Percent
Stockholder") will be exercisable after the expiration of five (5) years
from the date the ISO is granted. The Committee also may provide for Options to
become exercisable at one time or from time to time, periodically or otherwise,
in such number of Shares or percentage of Shares as the Committee
determines.

    

    5.4           Exercise Price. The
Exercise Price of an Option will be determined by the Committee when the Option
is granted and may be not less than 100% of the Fair Market Value of the Shares
on the date of grant; provided that: (i) the Exercise Price of an ISO will be
not less than 100% of the Fair Market Value of the Shares on the date of grant;
and (ii) the Exercise Price of any ISO granted to a Ten Percent Stockholder will
not be less than 110% of the Fair Market Value of the Shares on the date of
grant. Payment for the Shares purchased may be made in accordance with Section 8
of this Plan.

    

    5.5           Method of Exercise.
Options may be exercised only by delivery to the Company of a written stock
option exercise agreement (the "Exercise
Agreement") in a form approved by the Committee (which need not be the
same for each Participant), stating the number of Shares being purchased, the
restrictions imposed on the Shares purchased under such Exercise Agreement, if
any, and such representations and agreements regarding Participant's investment
intent and access to information and other matters, if any, as may be required
or desirable by the Company to comply with applicable securities laws, together
with payment in full of the Exercise Price for the number of Shares being
purchased.

    

    5.6           Termination.
Notwithstanding the exercise periods set forth in the Stock Option Agreement,
exercise of an Option will always be subject to the following:

    

    
      (a)       If the
Participant is Terminated for any reason except death or Disability, then the
Participant may exercise such Participant's Options only to the extent that such
Options would have been exercisable upon the Termination Date no later than
three (3) months after the Termination Date (or such shorter or longer time
period not exceeding five (5) years as may be determined by the Committee, with
any exercise beyond three (3) months after the Termination Date deemed to be an
NQSO), but in any event, no later than the expiration date of the
Options.

    

     

    (b)     If the
Participant is Terminated because of Participant's death or Disability (or the
Participant dies within three (3) months after a Termination other than for
Cause or because of Participant's Disability), then Participant's Options may be
exercised only to the extent that such Options would have been exercisable by
Participant on the Termination Date and must be exercised by Participant (or
Participant's legal representative or authorized assignee) no later than twelve
(12) months after the Termination Date (or such shorter or longer time period
not exceeding five (5) years as may be determined by the Committee, with any
such exercise beyond (a) three (3) months after the Termination Date when the
Termination is for any reason other than the Participant's death or Disability,
or (b) twelve (12) months after the Termination Date when the Termination is for
Participant's death or Disability, deemed to be an NQSO), but in any event no
later than the expiration date of the Options.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      (c)    Notwithstanding the
provisions in paragraph 5.6(a) above, if a Participant is terminated for Cause,
neither the Participant, the Participant's estate nor such other person who may
then hold the Option shall be entitled to exercise any Option with respect to
any Shares whatsoever, after termination of service, whether or not after
termination of service the Participant may receive payment from the Company or
Subsidiary for vacation pay, for services rendered prior to termination, for
services rendered for the day on which termination occurs, for salary in lieu of
notice, or for any other benefits. In making such determination, the Board shall
give the Participant an opportunity to present to the Board evidence on his
behalf. For the purpose of this paragraph, termination of service shall be
deemed to occur on the date when the Company dispatches notice or advice to the
Participant that his service is terminated.

    

    

    5.7           
Limitations on
Exercise. The Committee may specify a reasonable minimum number of Shares
that may be purchased on any exercise of an Option, provided that such minimum
number will not prevent Participant from exercising the Option for the full
number of Shares for which it is then exercisable.

    

    5.8           Limitations on ISO.
The aggregate Fair Market Value (determined as of the date of grant) of Shares
with respect to which ISO are exercisable for the first time by a Participant
during any calendar year (under this Plan or under any other incentive stock
option plan of the Company, Parent or Subsidiary of the Company) will not exceed
$100,000. If the Fair Market Value of Shares on the date of grant with respect
to which ISO are exercisable for the first time by a Participant during any
calendar year exceeds $100,000, then the Options for the first $100,000 worth of
Shares to become exercisable in such calendar year will be ISO and the Options
for the amount in excess of $100,000 that become exercisable in that calendar
year will be NQSOs. In the event that the Code or the regulations promulgated
thereunder are amended after the Effective Date of this Plan to provide for a
different limit on the Fair Market Value of Shares permitted to be subject to
ISO, such different limit will be automatically incorporated herein and will
apply to any Options granted after the effective date of such
amendment.

    

    5.9           Modification, Extension or
Renewal. The Committee may modify, extend or renew outstanding Options
and authorize the grant of new Options in substitution therefor, provided that
any such action may not, without the written consent of a Participant, impair
any of such Participant's rights under any Option previously granted. Any
outstanding ISO that is modified, extended, renewed or otherwise altered will be
treated in accordance with Section 424(h) of the Code. The Committee may reduce
the Exercise Price of outstanding Options without the consent of Participants
affected by a written notice to them; provided, however, that the
Exercise Price may not be reduced below the minimum Exercise Price that would be
permitted under Section 5.4 of this Plan for Options granted on the date the
action is taken to reduce the Exercise Price.

    

    5.10           
No
Disqualification. Notwithstanding any other provision in this Plan, no
term of this Plan relating to ISO will be interpreted, amended or altered, nor
will any discretion or authority granted under this Plan be exercised, so as to
disqualify this Plan under Section 422 of the Code or, without the consent of
the Participant affected, to disqualify any ISO under Section 422 of the
Code.

    

    6.       
     RESTRICTED
STOCK. A Restricted Stock Award is an offer by the Company to sell to an
eligible person Shares that are subject to restrictions. The Committee will
determine to whom an offer will be made, the number of Shares the person may
purchase, the price to be paid (the "Purchase
Price"), the restrictions to which the Shares will be subject, and all
other terms and conditions of the Restricted Stock Award, subject to the
following:

    

    6.1           Form of Restricted Stock
Award. All purchases under a Restricted Stock Award made pursuant to this
Plan will be evidenced by an Award Agreement ("Restricted Stock
Purchase Agreement") that will be in such form (which need not be the
same for each Participant) as the Committee will from time to time approve, and
will comply with and be subject to the terms and conditions of this Plan. The
offer of Restricted Stock will be accepted by the Participant's execution and
delivery of the Restricted Stock Purchase Agreement and full payment for the
Shares to the Company within thirty (30) days from the date the Restricted Stock
Purchase Agreement is delivered to the person. If such person does not execute
and deliver the Restricted Stock Purchase Agreement along with full payment for
the Shares to the Company within thirty (30) days, then the offer will
terminate, unless otherwise determined by the Committee.

    

    6.2           Purchase Price. The
Purchase Price of Shares sold pursuant to a Restricted Stock Award will be
determined by the Committee on the date the Restricted Stock Award is granted,
except in the case of a sale to a Ten Percent Stockholder, in which case the
Purchase Price will be 100% of the Fair Market Value. Payment of the Purchase
Price may be made in accordance with Section 8 of this Plan.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    6.3           Terms of Restricted Stock
Awards. Restricted Stock Awards shall be subject to such restrictions as
the Committee may impose. These restrictions may be based upon completion of a
specified number of years of service with the Company or upon completion of the
performance goals as set out in advance in the Participant's individual
Restricted Stock Purchase Agreement. Restricted Stock Awards may vary from
Participant to Participant and between groups of Participants. Prior to the
grant of a Restricted Stock Award, the Committee shall: (a) determine the
nature, length and starting date of any Performance Period for the Restricted
Stock Award; (b) select from among the Performance Factors to be used to measure
performance goals, if any; and (c) determine the number of Shares that may be
awarded to the Participant. Prior to the payment of any Restricted Stock Award,
the Committee shall determine the extent to which such Restricted Stock Award
has been earned. Performance Periods may overlap and Participants may
participate simultaneously with respect to Restricted Stock Awards that are
subject to different Performance Periods and having different performance goals
and other criteria.

    

    6.4           Termination During
Performance Period. If a Participant is Terminated during a Performance
Period for any reason, then such Participant will be entitled to payment
(whether in Shares, cash or otherwise) with respect to the Restricted Stock
Award only to the extent earned as of the date of Termination in accordance with
the Restricted Stock Purchase Agreement, unless the Committee will determine
otherwise.

    

    7.      
      STOCK
BONUSES.

    

    7.1           Awards of Stock
Bonuses. A Stock Bonus is an award of Shares (which may consist of
Restricted Stock) for services rendered to the Company or any Parent or
Subsidiary of the Company. A Stock Bonus may be awarded for past services
already rendered to the Company, or any Parent or Subsidiary of the Company
pursuant to an Award Agreement (the "Stock Bonus
Agreement") that will be in such form (which need not be the same for
each Participant) as the Committee will from time to time approve, and will
comply with and be subject to the terms and conditions of this Plan. A Stock
Bonus may be awarded upon satisfaction of such performance goals as are set out
in advance in the Participant's individual Award Agreement (the "Performance Stock
Bonus Agreement") that will be in such form (which need not be the same
for each Participant) as the Committee will from time to time approve, and will
comply with and be subject to the terms and conditions of this Plan. Stock
Bonuses may vary from Participant to Participant and between groups of
Participants, and may be based upon the achievement of the Company, Parent or
Subsidiary and/or individual performance factors or upon such other criteria as
the Committee may determine.

    

    7.2           Terms of Stock
Bonuses. The Committee will determine the number of Shares to be awarded
to the Participant. If the Stock Bonus is being earned upon the satisfaction of
performance goals pursuant to a Performance Stock Bonus Agreement, then the
Committee will: (a) determine the nature, length and starting date of any
Performance Period for each Stock Bonus; (b) select from among the Performance
Factors to be used to measure the performance, if any; and (c) determine the
number of Shares that may be awarded to the Participant. Prior to the payment of
any Stock Bonus, the Committee shall determine the extent to which such Stock
Bonuses have been earned. Performance Periods may overlap and Participants may
participate simultaneously with respect to Stock Bonuses that are subject to
different Performance Periods and different performance goals and other
criteria. The number of Shares may be fixed or may vary in accordance with such
performance goals and criteria as may be determined by the Committee. The
Committee may adjust the performance goals applicable to the Stock Bonuses to
take into account changes in law and accounting or tax rules and to make such
adjustments as the Committee deems necessary or appropriate to reflect the
impact of extraordinary or unusual items, events or circumstances to avoid
windfalls or hardships.

    

    7.3           Form of Payment. The
earned portion of a Stock Bonus may be paid currently or on a deferred basis
with such interest or dividend equivalent, if any, as the Committee may
determine. Payment may be made in the form of cash or whole Shares or a
combination thereof, either in a lump sum payment or in installments, all as the
Committee will determine.

    

    8.       
     PAYMENT
FOR SHARE PURCHASES.

    

    8.1           
Payment.
Payment for Shares purchased pursuant to this Plan may be made in cash (by
check) or, where expressly approved for the Participant by the Committee and
where permitted by law:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (a)            by
cancellation of indebtedness of the Company to the Participant;

     

    (b)    by
surrender of shares that either: (1) have been owned by Participant for more
than six (6) months and have been paid for within the meaning of SEC Rule 144
(and, if such shares were purchased from the Company by use of a promissory
note, such note has been fully paid with respect to such shares); or (2) were
obtained by Participant in the public market;

     

    (c)     by tender
of a full recourse promissory note having such terms as may be approved by the
Committee and bearing interest at a rate sufficient to avoid imputation of
income under Sections 483 and 1274 of the Code; provided, however, that
Participants who are not employees or directors of the Company will not be
entitled to purchase Shares with a promissory note unless the note is adequately
secured by collateral other than the Shares;

     

    (d)     by waiver
of compensation due or accrued to the Participant for services
rendered;

     

    (e)     with
respect only to purchases upon exercise of an Option, and provided that a public
market for the Company's stock exists:

     

    (1)    through a
"same day sale" commitment from the Participant and a broker-dealer that is a
member of the National Association of Securities Dealers (an "NASD
Dealer") whereby the Participant irrevocably elects to exercise the
Option and to sell a portion of the Shares so purchased to pay for the Exercise
Price, and whereby the NASD Dealer irrevocably commits upon receipt of such
Shares to forward the Exercise Price directly to the Company; or

     

    (2)     through a
"margin" commitment from the Participant and a NASD Dealer whereby the
Participant irrevocably elects to exercise the Option and to pledge the Shares
so purchased to the NASD Dealer in a margin account as security for a loan from
the NASD Dealer in the amount of the Exercise Price, and whereby the NASD Dealer
irrevocably commits upon receipt of such Shares to forward the Exercise Price
directly to the Company; or

     

    (f)     by any
combination of the foregoing.

    

    8.2           
Loan
Guarantees. The Committee may help the Participant pay for Shares
purchased under this Plan by authorizing a guarantee by the Company of a
third-party loan to the Participant.

    

    9.       
     AUTOMATIC GRANTS TO OUTSIDE
DIRECTORS.

    

    9.1           
Types of Options and
Shares. Options granted under this Plan and subject to this Section 9
shall be NQSOs.

    

    9.2           
Eligibility.
Options subject to this Section 9 shall be granted only to Outside
Directors.

    

    9.3           Initial Grant. Each
Outside Director who first becomes a member of the Board on or after the
Effective Date will automatically be granted an Option for 50,000 Shares (an
"Initial
Grant") on the date such Outside Director first becomes a member of the
Board. Each Outside Director who became a member of the Board prior to the
Effective Date will automatically be granted an Option for 25,000 Shares
immediately following the Effective Date.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    9.4           
Succeeding
Grant. Immediately following each Annual Meeting of stockholders, each
Outside Director will automatically be granted an Option for 20,000 Shares (a
"Succeeding
Grant"), provided the Outside Director is a member of the Board on such
date and has served continuously as a member of the Board for a period of at
least one year since the date of such Outside Director's Initial Grant.
Notwithstanding anything in this Section 9.4 to the contrary, the Board may make
discretionary supplemental grants to an Outside Director who has served for less
than one year from the date of such Outside Director’s Initial Grant, provided that no
Outside Director may receive more than 70,000 Shares in any calendar year
pursuant to this Section 9.

    

    9.5           Vesting. The date an
Outside Director receives an Initial Grant or a Succeeding Grant is referred to
in this Plan as the "Start
Date" for such Option.

     

    (a)    Initial
Grants.  Each Initial Grant will vest (i) as to twenty-five
percent (25%) of the Shares on the earlier of (A) the one (1) year anniversary
of the Start Date or (B) the next succeeding Annual Meeting where such Outside
Director is not serving as an Outside Director following such Annual Meeting but
such person is an Outside Director on the day immediately preceding such Annual
Meeting and (ii) as to 2.08333% of the Shares on each subsequent monthly
anniversary thereafter, so long as the Outside Director continuously remains a
director or consultant of the Company.

     

    
      (b)    Succeeding
Grants.  Each Succeeding Grant will vest (i) as to twenty-five
percent (25%) of the Shares on the earlier of (A) the one (1) year anniversary
of the Start Date or (B) the next succeeding Annual Meeting where such Outside
Director is not serving as an Outside Director following such Annual Meeting but
such person is an Outside Director on the day immediately preceding such Annual
Meeting and (ii) as to 2.08333% of the Shares on each subsequent monthly
anniversary thereafter, so long as the Outside Director continuously remains a
director or consultant of the Company.

    

    

    Notwithstanding
any provision to the contrary, in the event of a Corporate Transaction described
in Section 18.1, the vesting of all options granted to Outside Directors
pursuant to this Section 9 will accelerate and such options will become
exercisable in full prior to the consummation of such event at such times and on
such conditions as the Committee determines, and must be exercised, if at all,
within three months of the consummation of said event. Any options not exercised
within such three-month period shall expire.

    

    9.6           Exercise Price. The
exercise price of an Option pursuant to an Initial Grant and Succeeding Grant
shall be the Fair Market Value of the Shares, at the time that the Option is
granted.

    

    10.           WITHHOLDING
TAXES.

    

    10.1           Withholding
Generally. Whenever Shares are to be issued in satisfaction of Awards
granted under this Plan, the Company may require the Participant to remit to the
Company an amount sufficient to satisfy federal, state and local withholding tax
requirements prior to the delivery of any certificate or certificates for such
Shares. Whenever, under this Plan, payments in satisfaction of Awards are to be
made in cash, such payment will be net of an amount sufficient to satisfy
federal, state, and local withholding tax requirements.

    

    10.2           Stock Withholding.
When, under applicable tax laws, a Participant incurs tax liability in
connection with the exercise or vesting of any Award that is subject to tax
withholding and the Participant is obligated to pay the Company the amount
required to be withheld, the Committee may in its sole discretion allow the
Participant to satisfy the minimum withholding tax obligation by electing to
have the Company withhold from the Shares to be issued that number of Shares
having a Fair Market Value equal to the minimum amount required to be withheld,
determined on the date that the amount of tax to be withheld is to be
determined. All elections by a Participant to have Shares withheld for this
purpose will be made in accordance with the requirements established by the
Committee and be in writing in a form acceptable to the Committee.

    

    11.            TRANSFERABILITY.

    

    11.1           
Except as otherwise provided in this Section 11, Awards granted under this Plan,
and any interest therein, will not be transferable or assignable by Participant,
and may not be made subject to execution, attachment or similar process,
otherwise than by will or by the laws of descent and distribution or as
determined by the Committee and set forth in the Award Agreement with respect to
Awards that are not ISOs.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    11.2           All Awards other than
NQSO's. All Awards other than NQSO's shall be exercisable: (i) during the
Participant's lifetime, only by (A) the Participant, or (B) the Participant's
guardian or legal representative; and (ii) after Participant's death, by the
legal representative of the Participant's heirs or legatees.

    

    11.3           NQSOs. Unless
otherwise restricted by the Committee, an NQSO shall be exercisable: (i) during
the Participant's lifetime only by (A) the Participant, (B) the Participant's
guardian or legal representative, (C) a Family Member of the Participant who has
acquired the NQSO by "permitted transfer;" and (ii) after Participant's death,
by the legal representative of the Participant's heirs or legatees. "Permitted
transfer" means, as authorized by this Plan and the Committee in an NQSO, any
transfer effected by the Participant during the Participant's lifetime of an
interest in such NQSO but only such transfers which are by gift or domestic
relations order. A permitted transfer does not include any transfer for value
and neither of the following are transfers for value: (a) a transfer of under a
domestic relations order in settlement of marital property rights or (b) a
transfer to an entity in which more than fifty percent of the voting interests
are owned by Family Members or the Participant in exchange for an interest in
that entity.

    

    12.           PRIVILEGES
OF STOCK OWNERSHIP; RESTRICTIONS ON SHARES..

    

    12.1           Voting and Dividends.
No Participant will have any of the rights of a stockholder with respect to any
Shares until the Shares are issued to the Participant. After Shares are issued
to the Participant, the Participant will be a stockholder and have all the
rights of a stockholder with respect to such Shares, including the right to vote
and receive all dividends or other distributions made or paid with respect to
such Shares; provided, that if
such Shares are Restricted Stock, then any new, additional or different
securities the Participant may become entitled to receive with respect to such
Shares by virtue of a stock dividend, stock split or any other change in the
corporate or capital structure of the Company will be subject to the same
restrictions as the Restricted Stock; provided, further, that the
Participant will have no right to retain such stock dividends or stock
distributions with respect to Shares that are repurchased at the Participant's
Purchase Price or Exercise Price pursuant to Section 12.

    

    12.2           Financial Statements.
The Company will provide financial statements to each Participant prior to such
Participant's purchase of Shares under this Plan, and to each Participant
annually during the period such Participant has Awards outstanding; provided, however, the Company
will not be required to provide such financial statements to Participants whose
services in connection with the Company assure them access to equivalent
information.

    

    12.3           Restrictions on
Shares. At the discretion of the Committee, the Company may reserve to
itself and/or its assignee(s) in the Award Agreement a right to repurchase a
portion of or all Unvested Shares held by a Participant following such
Participant's Termination at any time within ninety (90) days after the later of
Participant's Termination Date and the date Participant purchases Shares under
this Plan, for cash and/or cancellation of purchase money indebtedness, at the
Participant's Exercise Price or Purchase Price, as the case may be.

    

    13.           CERTIFICATES.
All certificates for Shares or other securities delivered under this Plan will
be subject to such stock transfer orders, legends and other restrictions as the
Committee may deem necessary or advisable, including restrictions under any
applicable federal, state or foreign securities law, or any rules, regulations
and other requirements of the SEC or any stock exchange or automated quotation
system upon which the Shares may be listed or quoted.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    14.           ESCROW;
PLEDGE OF SHARES. To enforce any restrictions on a Participant's Shares,
the Committee may require the Participant to deposit all certificates
representing Shares, together with stock powers or other instruments of transfer
approved by the Committee, appropriately endorsed in blank, with the Company or
an agent designated by the Company to hold in escrow until such restrictions
have lapsed or terminated, and the Committee may cause a legend or legends
referencing such restrictions to be placed on the certificates. Any Participant
who is permitted to execute a promissory note as partial or full consideration
for the purchase of Shares under this Plan will be required to pledge and
deposit with the Company all or part of the Shares so purchased as collateral to
secure the payment of Participant's obligation to the Company under the
promissory note; provided, however, that the
Committee may require or accept other or additional forms of collateral to
secure the payment of such obligation and, in any event, the Company will have
full recourse against the Participant under the promissory note notwithstanding
any pledge of the Participant's Shares or other collateral. In connection with
any pledge of the Shares, Participant will be required to execute and deliver a
written pledge agreement in such form as the Committee will from time to time
approve. The Shares purchased with the promissory note may be released from the
pledge on a pro rata basis as the promissory note is paid.

    
 

    15.          EXCHANGE
AND BUYOUT OF AWARDS. The Committee may, at any time or from time to
time, authorize the Company, with the consent of the respective Participants, to
issue new Awards in exchange for the surrender and cancellation of any or all
outstanding Awards. The Committee may at any time buy from a Participant an
Award previously granted with payment in cash, Shares (including Restricted
Stock) or other consideration, based on such terms and conditions as the
Committee and the Participant may agree.

     

    16.          SECURITIES
LAW AND OTHER REGULATORY COMPLIANCE. An Award will not be effective
unless such Award is in compliance with all applicable federal and state
securities laws, rules and regulations of any governmental body, and the
requirements of any stock exchange or automated quotation system upon which the
Shares may then be listed or quoted, as they are in effect on the date of grant
of the Award and also on the date of exercise or other issuance. Notwithstanding
any other provision in this Plan, the Company will have no obligation to issue
or deliver certificates for Shares under this Plan prior to: (a) obtaining any
approvals from governmental agencies that the Company determines are necessary
or advisable; and/or (b) completion of any registration or other qualification
of such Shares under any state or federal law or ruling of any governmental body
that the Company determines to be necessary or advisable. The Company will be
under no obligation to register the Shares with the SEC or to effect compliance
with the registration, qualification or listing requirements of any state
securities laws, stock exchange or automated quotation system, and the Company
will have no liability for any inability or failure to do so.

    

    17.          NO
OBLIGATION TO EMPLOY. Nothing in this Plan or any Award granted under
this Plan will confer or be deemed to confer on any Participant any right to
continue in the employ of, or to continue any other relationship with, the
Company or any Parent or Subsidiary of the Company or limit in any way the right
of the Company or any Parent or Subsidiary of the Company to terminate
Participant's employment or other relationship at any time, with or without
cause.

    

    18.           CORPORATE
TRANSACTIONS.

    

    18.1           Assumption or Replacement of
Awards by Successor. Except for automatic grants to Outside Directors
pursuant to Section 9 hereof, in the event of (a) a dissolution or liquidation
of the Company, (b) 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 will be binding on all Participants), (c) 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, (d) the sale of substantially all of the assets of the Company, or
(e) the acquisition, sale, or transfer of more than 50% of the outstanding
shares of the Company by tender offer or similar transaction (each, a "Corporate
Transaction"), (i) the vesting of all outstanding Awards will accelerate
as to an additional 25% of the Shares that are unvested on the date of the
Corporate Transaction and, (ii) thereafter, unless otherwise set forth below,
all unvested shares subject to outstanding Awards will continue to vest in equal
monthly installments over the remaining original vesting term as set forth in
the Award Agreement. Upon a Corporate Transaction, all outstanding Awards shall
be assumed by the successor or acquiring corporation (if any), which assumption
will be binding on all Participants. In the alternative, the successor or
acquiring corporation may substitute equivalent Awards or provide substantially
similar consideration to Participants as was provided to shareholders (after
taking into account the existing provisions of the Awards). The successor
corporation may also issue, in place of outstanding unvested Shares of the
Company 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) refuses to assume or substitute
Awards, as provided above, pursuant to a Corporate Transaction described in this
Subsection 18.1, such Awards will expire on such Corporate Transaction at such
time and on such conditions as the Committee will determine. Notwithstanding
anything in this Plan to the contrary, the Committee may, in its sole
discretion, provide that the vesting of any or all Awards granted pursuant to
this Plan will accelerate upon a Corporate Transaction described in this Section
18. If the Committee exercises such discretion with respect to Options, such
Options will 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 Corporate
Transaction, they shall terminate at such time as determined by the
Committee.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    18.2           Other Treatment of
Awards. Subject to any greater rights granted to Participants under the
foregoing provisions of this Section 18, in the event of the occurrence of any
Corporate Transaction described in Section 18.1, any outstanding Awards will be
treated as provided in the applicable agreement or plan of merger,
consolidation, dissolution, liquidation, or sale of assets.

    

    18.3           Assumption of Awards by the
Company. The Company, from time to time, also may substitute or assume
outstanding awards granted by another company, whether in connection with an
acquisition of such other company or otherwise, by either; (a) granting an Award
under this Plan in substitution of such other company's award; or (b) assuming
such award as if it had been granted under this Plan if the terms of such
assumed award could be applied to an Award granted under this Plan. Such
substitution or assumption will be permissible if the holder of the substituted
or assumed award would have been eligible to be granted an Award under this Plan
if the other company had applied the rules of this Plan to such grant. In the
event the Company assumes an award granted by another company, the terms and
conditions of such award will remain unchanged (except that the
exercise price and the number and nature of Shares issuable upon exercise of any
such option will be adjusted appropriately pursuant to Section 424(a) of the
Code). In the event the Company elects to grant a new Option rather than
assuming an existing option, such new Option may be granted with a similarly
adjusted Exercise Price.

    

    19.           ADOPTION
AND STOCKHOLDER APPROVAL. This Plan will become effective on the date on
which the registration statement filed by the Company with the SEC under the
Securities Act registering the initial public offering of the Company's Common
Stock is declared effective by the SEC (the "Effective
Date"). This Plan shall be approved by the stockholders of the Company
(excluding Shares issued pursuant to this Plan), consistent with applicable
laws, within twelve (12) months before or after the date this Plan is adopted by
the Board. Upon the Effective Date, the Committee may grant Awards pursuant to
this Plan; provided, however, that: (a) no
Option may be exercised prior to initial stockholder approval of this Plan; (b)
no Option granted pursuant to an increase in the number of Shares subject to
this Plan approved by the Board will be exercised prior to the time such
increase has been approved by the stockholders of the Company; (c) in the event
that initial stockholder approval is not obtained within the time period
provided herein, all Awards granted hereunder shall be cancelled, any Shares
issued pursuant to any Awards shall be cancelled and any purchase of Shares
issued hereunder shall be rescinded; and (d) in the event that stockholder
approval of such increase is not obtained within the time period provided
herein, all Awards granted pursuant to such increase will be cancelled, any
Shares issued pursuant to any Award granted pursuant to such increase will be
cancelled, and any purchase of Shares pursuant to such increase will be
rescinded.

    

    20.           TERM OF
PLAN/GOVERNING LAW. Unless earlier terminated as provided herein, this
Plan will terminate ten (10) years from the date this Plan is adopted by the
Board or, if earlier, the date of stockholder approval. This Plan and all
agreements thereunder shall be governed by and construed in accordance with the
laws of the State of California.

    

    21.           AMENDMENT
OR TERMINATION OF PLAN. The Board may at any time terminate or amend this
Plan in any respect, including without limitation amendment of any form of Award
Agreement or instrument to be executed pursuant to this Plan; provided, however, that the
Board will not, without the approval of the stockholders of the Company, amend
this Plan in any manner that requires such stockholder approval.

    

    Notwithstanding anything in the Plan
or in any applicable agreement to the contrary, the Committee may amend the Plan
or any applicable agreement, to take effect retroactively or otherwise, as
deemed necessary or advisable for the purpose of conforming the Plan or other
applicable agreement to any present or future law relating to plans of this or
similar nature (including, but not limited to, Section 409A of the Code), and to
the administrative regulations and rulings promulgated thereunder.  By
accepting an Award under this Plan, a Participant agrees to any amendment made
pursuant to this Section to any Award granted under the Plan without further
consideration or action.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    22.            NONEXCLUSIVITY
OF THE PLAN. Neither the adoption of this Plan by the Board, the
submission of this Plan to the stockholders of the Company for approval, nor any
provision of this Plan will be construed as creating any limitations on the
power of the Board to adopt such additional compensation arrangements as it may
deem desirable, including, without limitation, the granting of stock options and
bonuses otherwise than under this Plan, and such arrangements may be either
generally applicable or applicable only in specific cases.

    

    23.           409A
COMPLIANCE

    

    A.  Notwithstanding anything
herein to the contrary, any discretionary authority available pursuant to this
Plan shall only be exercised in a manner believed in good faith to comply with
Section 409A of the Code and to maintain the exemption from Section 409A for the
options and stock issued hereunder.

    

    B.  Notwithstanding anything
herein to the contrary, nothing herein shall provide for any feature for the
deferral of compensation other than the deferral of recognition of income until
the exercise or disposition of an option.

    

    C.  Special Provisions
Related To Section 409A of the Code.

    

    1.         Notwithstanding
anything in the Plan or in any applicable agreement to the contrary, to the
extent that any amount or benefit that would constitute non-exempt “deferred
compensation” for purposes of Section 409A of the Code would otherwise be
payable or distributable under the Plan or applicable agreement by reason of the
occurrence of a Change in Control, or the Participant’s Disability or separation
from service, such amount or benefit will not be payable or distributable to the
Participant by reason of such circumstance unless (i) the circumstances
giving rise to such Change in Control, Disability or separation from service
meet any description or definition of “change in control event”, “disability” or
“separation from service”, as the case may be, in Section 409A of the Code
and applicable regulations (without giving effect to any elective provisions
that may be available under such definition), or (ii) the payment or
distribution of such amount or benefit would be exempt from the application of
Section 409A of the Code by reason of the short-term deferral exemption or
otherwise.  This provision does not prohibit the vesting of any option
upon a Change in Control, Disability or separation from service, however
defined.  If this provision prevents the payment or distribution of
any amount or benefit, such payment or distribution shall be made on the next
earliest payment or distribution date or event specified in the applicable
agreement that is permissible under Section 409A.

    

    2.         If
any one or more options granted under the Plan to a Participant could qualify
for any separation pay exemption described in Treas. Reg. Section
1.409A-1(b)(9), but such options in the aggregate exceed the dollar limit
permitted for the separation pay exemptions, the Company (acting through the
Committee or the Head of Human Resources) shall determine which options or
portions thereof will be subject to such exemptions.

    

    3.         Notwithstanding
anything in the Plan or in any applicable agreement to the contrary, if any
amount or benefit that would constitute non-exempt “deferred compensation” for
purposes of Section 409A of the Code would otherwise be payable or distributable
under this Plan or in any notice applicable agreement by reason of a
Participant’s separation from service during a period in which the Participant
is a Specified Employee (as defined below), then, subject to any permissible
acceleration of payment by the Committee under Treas. Reg. Section
1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii) (conflicts of
interest), or (j)(4)(vi) (payment of employment taxes):

    

    (i) if
the payment or distribution is payable in a lump sum, the Participant’s right to
receive payment or distribution of such non-exempt deferred compensation will be
delayed until the earlier of the Participant’s death or the first day of the
seventh month following the Participant’s separation from service;
and

    

    (ii) if
the payment or distribution is payable over time, the amount of such non-exempt
deferred compensation that would otherwise be payable during the six-month
period immediately following the Participant’s separation from service will be
accumulated and the Participant’s right to receive payment or distribution of
such accumulated amount will be delayed until the earlier of the Participant’s
death or the first day of the seventh month following the Participant’s
separation from service, whereupon the accumulated amount will be paid or
distributed to the Participant and the normal payment or distribution schedule
for any remaining payments or distributions will resume.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    For
purposes of this Plan, the term “Specified Employee” has the meaning given such
term in Code Section 409A and the final regulations thereunder, provided,
however, that, as permitted in such final regulations, the Company’s Specified
Employees and its application of the six-month delay rule of Code Section
409A(a)(2)(B)(i) shall be determined in accordance with rules adopted by the
Board or any committee of the Board, which shall be applied consistently with
respect to all nonqualified deferred compensation arrangements of the Company,
including this Plan.

    

    

    23.            DEFINITIONS. As used in this Plan, the
following terms will have the following meanings:

    

    "Award"
means any award under this Plan, including any Option, Restricted Stock or Stock
Bonus.

    

    "Award
Agreement" means, with respect to each Award, the signed written
agreement between the Company and the Participant setting forth the terms and
conditions of the Award.

    

    "Board"
means the Board of Directors of the Company.

    

    "Cause"
means the commission of an act of theft, embezzlement, fraud, dishonesty or a
breach of fiduciary duty to the Company or a Parent or Subsidiary of the
Company.

    

    "Code"
means the Internal Revenue Code of 1986, as amended.  Reference to a
specific Section of the Code or regulation thereunder shall include such Section
or regulation, any valid regulation promulgated under such Section, and any
comparable provision of any future law, legislation or regulation amending,
supplementing or superseding such Section or regulation.

    

    "Committee"
means the Compensation Committee of the Board.

    

    "Company"
means Lexar Media, Inc. or any successor corporation.

    

    "Disability"means
a disability, whether temporary or permanent, partial or total, as determined by
the Committee. Notwithstanding the foregoing, for any Options that constitute a
nonqualified deferred compensation plan within the meaning of Section 409A(d) of
the Code, “Disability” has the meaning given such term in Section 409A of the
Code.

    

    "Exchange
Act" means the Securities Exchange Act of 1934, as amended.

    

    "Exercise
Price" means the price at which a holder of an Option may purchase the
Shares issuable upon exercise of the Option.

    

    "Fair Market
Value" means, as of any date, the value of a share of the Company's
Common Stock determined as follows:

     

    (a)     if such
Common Stock is then quoted on the Nasdaq National Market, its closing price on
the Nasdaq National Market on the date of determination as reported in The Wall Street
Journal;

     

    (b)     if such
Common Stock is publicly traded and is then listed on a national securities
exchange, its closing price on the date of determination on the principal
national securities exchange on which the Common Stock is listed or admitted to
trading as reported in The Wall Street
Journal;

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c)     if such
Common Stock is publicly traded but is not quoted on the Nasdaq National Market
nor listed or admitted to trading on a national securities exchange, the average
of the closing bid and asked prices on the date of determination as reported in
The Wall Street
Journal;

     

    (d)     in the
case of an Award made on the Effective Date, the price per share at which shares
of the Company's Common Stock are initially offered for sale to the public by
the Company's underwriters in the initial public offering of the Company's
Common Stock pursuant to a registration statement filed with the SEC under the
Securities Act; or

     

    (e)     if none
of the foregoing is applicable, by the Committee in good faith.

    

    "Family
Member" includes any of the following:

     

    (a)
child,
stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse,
sibling, niece, nephew, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother-in-law, or sister-in-law of the Participant, including
any such person with such relationship to the Participant by
adoption;

     

    (b)
any
person (other than a tenant or employee) sharing the Participant's
household;

     

    (c)
a
trust in which the persons in (a) and (b) have more than fifty percent of the
beneficial interest;

     

    (d)
a
foundation in which the persons in (a) and (b) or the Participant control the
management of assets; or

     

    (e)
any
other entity in which the persons in (a) and (b) or the Participant own more
than fifty percent of the voting interest.

    

    "Insider"
means an officer or director of the Company or any other person whose
transactions in the Company's Common Stock are subject to Section 16 of the
Exchange Act.

    

    "Option"
means an award of an option to purchase Shares pursuant to Section
5.

    

    "Outside
Director" means a member of the Board who is not an employee of the
Company or any Parent, Subsidiary or Affiliate of the Company.

    

    "Parent"
means any corporation (other than the Company) in an unbroken chain of
corporations ending with the Company if each of such corporations other than the
Company owns stock possessing 50% or more of the total combined voting power of
all classes of stock in one of the other corporations in such
chain.

    

    "Participant"
means a person who receives an Award under this Plan.

    

    "Performance
Factors" means the factors selected by the Committee from among the
following measures to determine whether the performance goals established by the
Committee and applicable to Awards have been satisfied:

    

    (a)         
  Net revenue and/or net revenue growth;

     

    (b)    Earnings
before income taxes and amortization and/or earnings before income taxes and
amortization growth;

    

    (c)           
Operating income and/or operating income growth;

    

    (d)           
Net income and/or net income growth;

    

    (e)         
  Earnings per share and/or earnings per share growth;

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (f)           
Total stockholder return and/or total stockholder return growth;

    

    (g)           
Return on equity;

    

    (h)           
Operating cash flow return on income;

    

    (i)         
   Adjusted operating cash flow return on income;

    

    (j)        
    Economic value added; and

    

    (k)           
Individual confidential business objectives.

    

    "Performance
Period" means the period of service determined by the Committee, not to
exceed five years, during which years of service or performance is to be
measured for Restricted Stock Awards or Stock Bonuses.

    

    "Plan"
means this Lexar Media, Inc. 2000 Equity Incentive Plan, as amended from time to
time.

    

    "Restricted Stock
Award" means an award of Shares pursuant to Section 6.

    

    "SEC" means
the Securities and Exchange Commission.

    

    "Securities
Act" means the Securities Act of 1933, as amended.

    

    "Shares"
means shares of the Company's Common Stock reserved for issuance under this
Plan, as adjusted pursuant to Sections 2 and 18, and any successor
security.

    

    "Stock
Bonus" means an award of Shares, or cash in lieu of Shares, pursuant to
Section 7.

    

    "Subsidiary"
means any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company if each of the corporations other than
the last corporation in the unbroken chain owns stock possessing 50% or more of
the total combined voting power of all classes of stock in one of the other
corporations in such chain.

    

    "Termination"
or "Terminated"
means, for purposes of this Plan with respect to a Participant, that the
Participant has for any reason ceased to provide services as an employee,
officer, director, consultant, independent contractor, or advisor to the Company
or a Parent or Subsidiary of the Company. An employee will not be deemed to have
ceased to provide services in the case of (i) sick leave, (ii) military leave,
or (iii) any other leave of absence approved by the Committee, provided, that
such leave is for a period of not more than 90 days, unless reemployment upon
the expiration of such leave is guaranteed by contract or statute or unless
provided otherwise pursuant to formal policy adopted from time to time by the
Company and issued and promulgated to employees in writing. In the case of any
employee on an approved leave of absence, the Committee may make such provisions
respecting suspension of vesting of the Award while on leave from the employ of
the Company or a Subsidiary as it may deem appropriate, except that in no event
may an Option be exercised after the expiration of the term set forth in the
Option agreement. The Committee will have sole discretion to determine whether a
Participant has ceased to provide services and the effective date on which the
Participant ceased to provide services (the "Termination
Date").

    

    "Unvested
Shares" means "Unvested Shares" as defined in the Award
Agreement.

    

    "Vested
Shares" means "Vested Shares" as defined in the Award
Agreement.exhibit10_48.htm

    EXHIBIT
10.48

    

    

    MICRON
TECHNOLOGY, INC.

    2007
EQUITY INCENTIVE PLAN

    

    ARTICLE
1

    PURPOSE

     

    1.1.           GENERAL.  The
purpose of the Micron Technology, Inc. 2007 Equity Incentive Plan (the
"Plan") is to promote the success, and enhance the value, of Micron
Technology, Inc. (the "Company"), by linking the personal interests of
employees, non-employee directors and consultants of the Company or any
Affiliate (as defined below) to those of Company stockholders and by providing
such persons with an incentive for outstanding performance. The Plan is further
intended to provide flexibility to the Company in its ability to motivate,
attract, and retain the services of employees, non-employee directors and
consultants upon whose judgment, interest, and special effort the successful
conduct of the Company's operation is largely dependent. Accordingly, the Plan
permits the grant of incentive awards from time to time to selected employees,
non-employee directors and consultants of the Company and its Affiliates;
provided, however, that no officer, including without limitation the chief
executive officer of the Company, is eligible to be a Participant in the
Plan.

    

    ARTICLE
2

    DEFINITIONS

     

    2.1.           DEFINITIONS.  When
a word or phrase appears in this Plan with the initial letter capitalized, and
the word or phrase does not commence a sentence, the word or phrase shall
generally be given the meaning ascribed to it in this Section or in
Section 1.1 unless a clearly different meaning is required by the context.
The following words and phrases shall have the following meanings:

    

    (a)          "Affiliate"
means (i) any Subsidiary or Parent, or (ii) an entity that directly or
through one or more intermediaries controls, is controlled by or is under common
control with, the Company, as determined by the Committee.

    

    (b)          "Award"
means any Option, Stock Appreciation Right, Restricted Stock Award, Restricted
Stock Unit Award, Deferred Stock Unit Award, Performance Share, Dividend
Equivalent Award, Other Stock-Based Award, or any other right or interest
relating to Stock or cash, granted to a Participant under the Plan.

    

    (c)          "Award
Certificate" means a written document, in such form as the Committee prescribes
from time to time, setting forth the terms and conditions of an Award. Award
Certificates may be in the form of individual award agreements or certificates
or a program document describing the terms and provisions of an Awards or series
of Awards under the Plan. The Committee may provide for the use of electronic,
internet or other non-paper Award Certificates, and the use of electronic,
internet or other non-paper means for the acceptance thereof and actions
thereunder by a Participant.

    

    (d)          "Board"
means the Board of Directors of the Company.

    

    (e)          "Change
in Control" means and includes the occurrence of any one of the following
events:

    

    (i)        individuals
who, on the Effective Date, constitute the Board of Directors of the Company
(the "Incumbent Directors") cease for any reason to constitute at least a
majority of such Board, provided that any person becoming a director after the
Effective Date and whose election or nomination for election was approved by a
vote of at least a majority of the Incumbent Directors then on the Board shall
be an Incumbent Director; provided, however, that no individual
initially elected or nominated as a director of the Company as a result of an
actual or threatened election contest with respect to the election or removal of
directors ("Election Contest") or other actual or threatened solicitation of
proxies or consents by or on behalf of any Person other than the Board ("Proxy
Contest"), including by reason of any agreement intended to avoid or settle any
Election Contest or Proxy Contest, shall be deemed an Incumbent Director;
or

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    (ii)       any
person is or becomes a "beneficial owner" (as defined in Rule 13d-3 under
the 1934 Act), directly or indirectly, of either (A) 35% or more of the
then-outstanding shares of common stock of the Company ("Company Common Stock")
or (B) securities of the Company representing 35% or more of the combined
voting power of the Company's then outstanding securities eligible to vote for
the election of directors (the "Company Voting Securities"); provided, however, that for purposes of
this subsection (ii), the following acquisitions shall not constitute a Change
in Control: (w) an acquisition directly from the Company, (x) an
acquisition by the Company or a Subsidiary of the Company, (y) an
acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any Subsidiary of the Company, or (z) an
acquisition pursuant to a Non-Qualifying Transaction (as defined in subsection
(iii) below); or

    

    (iii)      the
consummation of a reorganization, merger, consolidation, statutory share
exchange or similar form of corporate transaction involving the Company or a
Subsidiary (a "Reorganization"), or the sale or other disposition of all or
substantially all of the Company's assets (a "Sale") or the acquisition of
assets or stock of another corporation (an "Acquisition"), unless immediately
following such Reorganization, Sale or Acquisition: (A) all or
substantially all of the individuals and entities who were the beneficial
owners, respectively, of the outstanding Company Common Stock and outstanding
Company Voting Securities immediately prior to such Reorganization, Sale or
Acquisition beneficially own, directly or indirectly, more than 50% of,
respectively, the then outstanding shares of common stock and the combined
voting power of the then outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the corporation
resulting from such Reorganization, Sale or Acquisition (including, without
limitation, a corporation which as a result of such transaction owns the Company
or all or substantially all of the Company's assets or stock either directly or
through one or more subsidiaries, the "Surviving Corporation") in substantially
the same proportions as their ownership, immediately prior to such
Reorganization, Sale or Acquisition, of the outstanding Company Common Stock and
the outstanding Company Voting Securities, as the case may be, and (B) no
person (other than (x) the Company or any Subsidiary of the Company,
(y) the Surviving Corporation or its ultimate parent corporation, or
(z) any employee benefit plan or related trust) sponsored or maintained by
any of the foregoing is the beneficial owner, directly or indirectly, of 35% or
more of the total common stock or 35% or more of the total voting power of the
outstanding voting securities eligible to elect directors of the Surviving
Corporation, and (C) at least a majority of the members of the board of
directors of the Surviving Corporation were Incumbent Directors at the time of
the Board's approval of the execution of the initial agreement providing for
such Reorganization, Sale or Acquisition (any Reorganization, Sale or
Acquisition which satisfies all of the criteria specified in (A), (B) and
(C) above shall be deemed to be a "Non-Qualifying Transaction");
or

    

    (iv)     approval
by the stockholders of the Company of a complete liquidation or dissolution of
the Company.

    

    (f)          "Code"
means the Internal Revenue Code of 1986, as amended from time to time. Reference
to a specific Section of the Code or regulation thereunder shall include such
Section or regulation, any valid regulation promulgated under such Section, and
any comparable provision of any future law, legislation or regulation amending,
supplementing or superseding such Section or regulation.

    

    (g)          "Committee"
means the committee of the Board described in Article 4.

    

    (h)          "Company"
means Micron Technology, Inc., a Delaware corporation, or any successor
corporation.

    

    (i)     
     "Continuous Status as a Participant" means the
absence of any interruption or termination of service as an employee, officer,
consultant or non-employee director of the Company or any Affiliate, as
applicable; provided, however, that for purposes of an Incentive Stock Option,
or a Stock Appreciation Right issued in tandem with an Incentive Stock Option,
"Continuous Status as a Participant" means the absence of any interruption or
termination of service as an employee of the Company or any Parent or
Subsidiary, as applicable, pursuant to applicable tax regulations. Continuous
Status as a Participant shall not be considered interrupted in the case of any
leave of absence authorized in writing by the Company 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    prior to
its commencement; provided, however, that for purposes of Incentive Stock
Options, no such leave may exceed 90 days, unless reemployment upon
expiration of such leave is guaranteed by statute or contract. If reemployment
upon expiration of a leave of absence approved by the Company is not so
guaranteed, on the 91st day of such leave any Incentive Stock Option held by the
Participant shall cease to be treated as an Incentive Stock Option and shall be
treated for tax purposes as a Nonstatutory Stock Option.

    

    (j)         
 "Covered Employee" means a covered employee as defined in Code
Section 162(m)(3).

    

    (k)          "Disability"
or "Disabled" has the same meaning as provided in the long-term disability plan
or policy maintained by the Company or if applicable, most recently maintained,
by the Company or if applicable, an Affiliate, for the Participant, whether or
not such Participant actually receives disability benefits under such plan or
policy. If no long-term disability plan or policy was ever maintained on behalf
of Participant or if the determination of Disability relates to an Incentive
Stock Option, or a Stock Appreciation Right issued in tandem with an Incentive
Stock Option, Disability means Permanent and Total Disability as defined in
Section 22(e)(3) of the Code. Notwithstanding the foregoing, for any Awards
that constitute a nonqualified deferred compensation plan within the meaning of
Section 409A(d) of the Code, Disability has the meaning given such term in
Section 409A of the Code. In the event of a dispute, the determination
whether a Participant is Disabled will be made by the Committee and may be
supported by the advice of a physician competent in the area to which such
Disability relates.

    

    (l)        
  "Deferred Stock Unit" means a right granted to a Participant under
Article 11.

    

    (m)         "Dividend
Equivalent" means a right granted to a Participant under
Article 12.

    

    (n)          "Effective
Date" has the meaning assigned such term in Section 3.1.

    

    (o)          "Eligible
Participant" means an employee, consultant or non-employee director of the
Company or any Affiliate; provided, however, that no officer, including without
limitation the chief executive officer of the Company, is eligible to be a
Participant in the Plan.

    

    (p)          "Exchange"
means the New York Stock Exchange or any other national securities exchange or
national market system on which the Stock may from time to time be listed or
traded.

    

    (q)          "Fair
Market Value" of the Stock, on any date, means: (i) if the Stock is listed
or traded on any Exchange, the closing sales price for such Stock (or the
closing bid, if no sales were reported) as quoted on such Exchange (or, if more
than one Exchange, the Exchange with the greatest volume of trading in the
Stock) for such date, or if no sales or bids were reported for such date, on the
last market trading day prior to the day of determination, as reported by Market
Sweep, a service from Interactive Data Services, Inc., or such other source as
the Committee deems reliable; (ii) if the Stock is quoted on the
over-the-counter market or is regularly quoted by a recognized securities
dealer, but selling prices are not reported, the Fair Market Value of the Stock
shall be the mean between the high bid and low asked prices for the Stock on
such date, or if no sales or bids were reported for such date, on the last
market trading day prior to the day of determination, as reported by Market
Sweep, a service from Interactive Data Services, Inc. or such other source as
the Committee deems reliable, or (iii) in the absence of an established
market for the Stock, the Fair Market Value shall be determined by such other
method as the Committee determines in good faith to be reasonable and in
compliance with Code Section 409A.

    

    (r)       
   "Full Value Award" means an Award other than in the form of an
Option or SAR, and which is settled by the issuance of Stock.

    

    (s)          "Grant
Date" of an Award means the first date on which all necessary corporate action
has been taken to approve the grant of the Award as provided in the Plan, or
such later date as is determined and specified as part of that authorization
process. Notice of the grant shall be provided to the grantee within a
reasonable time after the Grant Date.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (t)       
   "Incentive Stock Option" means an Option that is intended to
be an incentive stock option and meets the requirements of Section 422 of
the Code or any successor provision thereto.

    

    (u)          "Non-Employee
Director" means a director of the Company who is not a common law employee of
the Company or an Affiliate.

    

    (v)          "Nonstatutory
Stock Option" means an Option that is not an Incentive Stock
Option.

    

    (w)         "Option"
means a right granted to a Participant under Article 7 of the Plan to
purchase Stock at a specified price during specified time periods. An Option may
be either an Incentive Stock Option or a Nonstatutory Stock Option.

    

    (x)          "Other
Stock-Based Award" means a right, granted to a Participant under Article 13
that relates to or is valued by reference to Stock or other Awards relating to
Stock.

    

    (y)          "Parent"
means a corporation, limited liability company, partnership or other entity
which owns or beneficially owns a majority of the outstanding voting stock or
voting power of the Company. Notwithstanding the above, with respect to an
Incentive Stock Option, Parent shall have the meaning set forth in
Section 424(e) of the Code.

    

    (z)          "Participant"
means a person who, as an employee, non-employee director or consultant of the
Company or any Affiliate, has been granted an Award under the Plan; provided
that in the case of the death of a Participant, the term "Participant" refers to
a beneficiary designated pursuant to Section 14.5 or the legal guardian or
other legal representative acting in a fiduciary capacity on behalf of the
Participant under applicable state law and court supervision. Notwithstanding
the foregoing, a Participant shall not include the chief executive officer or
any other officers of the Company.

    

    (aa)        "Performance
Share" means any right granted to a Participant under Article 9 to a unit
to be valued by reference to a designated number of Shares to be paid upon
achievement of such performance goals as the Committee establishes with regard
to such Performance Share.

    

    (bb)       "Person"
means any individual, entity or group, within the meaning of
Section 3(a)(9) of the 1934 Act and as used in Section 13(d)(3) or
14(d)(2) of the 1934 Act.

    

    (cc)        "Plan"
means the Micron Technology, Inc. 2007 Equity Incentive Plan, as amended
from time to time.

    

    (dd)       "Qualified
Performance-Based Award" means an Award that is either (i) intended to
qualify for the Section 162(m) Exemption and is made subject to performance
goals based on Qualified Business Criteria as set forth in
Section 14.10(b), or (ii) an Option or SAR.

    

    (ee)   
    "Qualified Business Criteria" means one or more of the
Business Criteria listed in Section 14.10(b) upon which performance goals
for certain Qualified Performance-Based Awards may be established by the
Committee.

    

    (ff)         "Restricted
Stock Award" means Stock granted to a Participant under Article 10 that is
subject to certain restrictions and to risk of forfeiture.

    

    (gg)       "Restricted
Stock Unit Award" means the right granted to a Participant under Article 10
to receive shares of Stock (or the equivalent value in cash or other property if
the Committee so provides) in the future, which right is subject to certain
restrictions and to risk of forfeiture.

    

    (hh)       "Section 162(m)
Exemption" means the exemption from the limitation on deductibility imposed by
Section 162(m) of the Code that is set forth in Section 162(m)(4)(C)
of the Code or any successor provision thereto.

    

    
      
        
        

      

      
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    (ii)          "Shares"
means shares of the Company's Stock. If there has been an adjustment or
substitution pursuant to Section 15.1, the term "Shares" shall also include
any shares of stock or other securities that are substituted for Shares or into
which Shares are adjusted pursuant to Section 15.1.

    

    (jj)          "Stock"
means the $.10 par value common stock of the Company and such other securities
of the Company as may be substituted for Stock pursuant to
Article 15.

    

    (kk)        "Stock
Appreciation Right" or "SAR" means a right granted to a Participant under
Article 8 to receive a payment equal to the difference between the Fair
Market Value of a Share as of the date of exercise of the SAR over the base
price of the SAR, all as determined pursuant to Article 8.

    

    (ll)          "Subsidiary"
means any corporation, limited liability company, partnership or other entity of
which a majority of the outstanding voting stock or voting power is beneficially
owned directly or indirectly by the Company. Notwithstanding the above, with
respect to an Incentive Stock Option, Subsidiary shall have the meaning set
forth in Section 424(f) of the Code.

    

    (mm)      "1933
Act" means the Securities Act of 1933, as amended from time to
time.

    

    (nn)       "1934
Act" means the Securities Exchange Act of 1934, as amended from time to
time.

    

    ARTICLE
3

    EFFECTIVE
TERM OF PLAN

     

    3.1.           EFFECTIVE
DATE.  The Plan shall be effective as of the date it is
approved by both the Board and the stockholders of the Company (the "Effective
Date").

     

    3.2.           TERMINATION OF
PLAN.  The Plan shall terminate on the tenth anniversary of the
Effective Date unless earlier terminated as provided herein, which shall
continue to be governed by the applicable terms and conditions of this Plan. The
termination of the Plan on such date shall not affect the validity of any Award
outstanding on the date of termination. No Incentive Stock Options may be
granted more than ten years after the earlier of (a) adoption of this Plan
by the Board, or (b) the Effective Date.

    

    ARTICLE
4

    ADMINISTRATION

     

    4.1.           COMMITTEE.  The
Plan shall be administered by a Committee appointed by the Board (which
Committee shall consist of at least two directors) or, at the discretion of the
Board from time to time, the Plan may be administered by the Board. It is
intended that at least two of the directors appointed to serve on the Committee
shall be "non-employee directors" (within the meaning of Rule 16b-3
promulgated under the 1934 Act) and "outside directors" (within the meaning of
Code Section 162(m)) and that any such members of the Committee who do not
so qualify shall abstain from participating in any decision to make or
administer Awards that are made to Eligible Participants who at the time of
consideration for such Award (i) are persons subject to the short-swing
profit rules of Section 16 of the 1934 Act, or (ii) are reasonably
anticipated to become Covered Employees during the term of the Award. However,
the mere fact that a Committee member shall fail to qualify under either of the
foregoing requirements or shall fail to abstain from such action shall not
invalidate any Award made by the Committee which Award is otherwise validly made
under the Plan. The members of the Committee shall be appointed by, and may be
changed at any time and from time to time in the discretion of, the Board. The
Board may reserve to itself any or all of the authority and responsibility of
the Committee under the Plan or may act as administrator of the Plan for any and
all purposes. To the extent the Board has reserved any authority and
responsibility or during any time that the Board is acting as administrator of
the Plan, it shall have all the powers of the Committee hereunder, and any
reference herein to the Committee (other than in this Section 4.1) shall
include the Board. To the extent any action of the Board under the Plan
conflicts with actions taken by the Committee, the actions of the Board shall
control.

     

    4.2.           ACTION AND INTERPRETATIONS BY THE
COMMITTEE.  For purposes of administering the Plan, the
Committee may from time to time adopt rules, regulations, guidelines and
procedures for carrying out the provisions and purposes of the Plan and make
such other determinations, not inconsistent with the Plan, as the 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    Committee
may deem appropriate. The Committee's interpretation of the Plan, any Awards
granted under the Plan, any Award Certificate and all decisions and
determinations by the Committee with respect to the Plan are final, binding, and
conclusive on all parties. Each member of the Committee is entitled to, in good
faith, rely or act upon any report or other information furnished to that member
by any officer or other employee of the Company or any Affiliate, the Company's
or an Affiliate's independent certified public accountants, Company counsel or
any executive compensation consultant or other professional retained by the
Company to assist in the administration of the Plan.

     

    4.3.           AUTHORITY OF
COMMITTEE.  Except as provided below, the Committee has the
exclusive power, authority and discretion to:

    

    (a)          Grant
Awards;

    

    (b)         Designate
Participants;

    

    (c)         Determine
the type or types of Awards to be granted to each Participant;

    

    (d)         Determine
the number of Awards to be granted and the number of Shares or dollar amount to
which an Award will relate;

    

    (e)         Determine
the terms and conditions of any Award granted under the Plan, including but not
limited to, the exercise price, base price, or purchase price, any restrictions
or limitations on the Award, any schedule for lapse of forfeiture restrictions
or restrictions on the exercisability of an Award, and accelerations or waivers
thereof, based in each case on such considerations as the Committee in its sole
discretion determines;

    

    (f)          Accelerate
the vesting, exercisability or lapse of restrictions of any outstanding Award,
in accordance with Article 14, based in each case on such considerations as
the Committee in its sole discretion determines;

    

    (g)         Determine
whether, to what extent, and under what circumstances an Award may be settled
in, or the exercise price of an Award may be paid in, cash, Stock, other Awards,
or other property, or an Award may be canceled, forfeited, or
surrendered;

    

    (h)         Prescribe
the form of each Award Certificate, which need not be identical for each
Participant;

    

    (i)         
Decide all other matters that must be determined in connection with an
Award;

    

    (j)         
Establish, adopt or revise any rules, regulations, guidelines or procedures as
it may deem necessary or advisable to administer the Plan;

    

    (k)         Make
all other decisions and determinations that may be required under the Plan or as
the Committee deems necessary or advisable to administer the Plan;

    

    (l)         
Amend the Plan or any Award Certificate as provided herein; and

    

    (m)         Adopt
such modifications, procedures, and subplans as may be necessary or desirable to
comply with provisions of the laws of non-U.S. jurisdictions in which the
Company or any Affiliate may operate, in order to assure the viability of the
benefits of Awards granted to participants located in such other jurisdictions
and to meet the objectives of the Plan.

    

    Notwithstanding the foregoing, grants
of Awards to Non-Employee Directors hereunder shall be made only in accordance
with the terms, conditions and parameters of a plan, program or policy for the
compensation of Non-Employee Directors as in effect from time to time, and the
Committee may not make discretionary grants hereunder to Non-Employee
Directors.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    Notwithstanding the above, the Board
may, by resolution, expressly delegate to a special committee, consisting of one
or more directors who may but need not be officers of the Company, the
authority, within specified parameters, to (i) designate officers,
employees and/or consultants of the Company or any of its Affiliates to be
recipients of Awards under the Plan, and (ii) to determine the number of
such Awards to be received by any such Participants; provided, however, that
such delegation of duties and responsibilities to an officer of the Company may
not be made with respect to the grant of Awards to eligible participants
(a) who are subject to Section 16(a) of the 1934 Act at the Grant
Date, or (b) who as of the Grant Date are reasonably anticipated to be
become Covered Employees during the term of the Award. The acts of such
delegates shall be treated hereunder as acts of the Board and such delegates
shall report regularly to the Board and the Compensation Committee regarding the
delegated duties and responsibilities and any Awards so granted.

     

    4.4.           AWARD
CERTIFICATES.  Each Award shall be evidenced by an Award
Certificate. Each Award Certificate shall include such provisions, not
inconsistent with the Plan, as may be specified by the Committee.

    

    ARTICLE
5

    SHARES
SUBJECT TO THE PLAN

     

    5.1.           NUMBER OF
SHARES.  Subject to adjustment as provided in Sections 5.2 and
15.1, the aggregate number of Shares reserved and available for issuance
pursuant to Awards granted under the Plan shall be 40,000,000; provided,
however, that each Share issued under the Plan pursuant to a Full Value Award
shall reduce the number of available Shares by two (2) shares. The maximum
number of Shares that may be issued upon exercise of Incentive Stock Options
granted under the Plan shall be 2,000,000.

     

    5.2.           SHARE
COUNTING.  Shares covered by an Award shall be subtracted from
the Plan share reserve as of the date of grant, but shall be added back to the
Plan share reserve in accordance with this Section 5.2.

    

    (a)        To
the extent that an Award is canceled, terminates, expires, is forfeited or
lapses for any reason, any unissued or forfeited Shares subject to the Award
will again be available for issuance pursuant to Awards granted under the
Plan.

    

    (b)        Shares
subject to Awards settled in cash will again be available for issuance pursuant
to Awards granted under the Plan.

    

    (c)        Substitute
Awards granted pursuant to Section 14.14 of the Plan shall not count
against the Shares otherwise available for issuance under the Plan under
Section 5.1.

     

    5.3.           STOCK
DISTRIBUTED.  Any Stock distributed pursuant to an Award may
consist, in whole or in part, of authorized and unissued Stock, treasury Stock
or Stock purchased on the open market.

     

    5.4.           LIMITATION ON
AWARDS.  Notwithstanding any provision in the Plan to the
contrary (but subject to adjustment as provided in Section 15.1), the
maximum number of Shares with respect to one or more Options and/or SARs that
may be granted during any one calendar year under the Plan to any one
Participant shall be 2,000,000. The maximum aggregate grant with respect to
Awards of Restricted Stock, Restricted Stock Units, Deferred Stock Units,
Performance Shares or other Stock-Based Awards (other than Options or SARs)
granted in any one calendar year to any one Participant shall be
2,000,000.

    

    ARTICLE
6

    ELIGIBILITY

     

    6.1.           GENERAL.  Awards
may be granted only to Eligible Participants; except that Incentive Stock
Options may be granted to only to Eligible Participants who are employees of the
Company or a Parent or Subsidiary as defined in Section 424(e) and
(f) of the Code. Eligible Participants who are service providers to an
Affiliate may be granted Options or SARs under this Plan only if the Affiliate
qualifies as an "eligible issuer of service recipient stock" within the meaning
of §1.409A-1(b)(5)(iii)(E) of the final regulations under Code
Section 409A.

    

    
      
        
        

      

      
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    ARTICLE
7

    STOCK
OPTIONS

     

    7.1.           GENERAL.  The
Committee is authorized to grant Options to Participants on the following terms
and conditions:

    

    (a)           EXERCISE
PRICE. The exercise price per Share under an Option shall be determined by the
Committee; provided that the exercise price for any Option (other than an Option
issued as a substitute Award pursuant to Section 14.14) shall not be less
than the Fair Market Value as of the Grant Date.

    

    (b)           PROHIBITION
ON REPRICING. Except as otherwise provided in Section 15.1, the exercise
price of an Option may not be reduced, directly or indirectly by cancellation
and regrant or otherwise, without the prior approval of the shareholders of the
Company.

    

    (c)           TIME
AND CONDITIONS OF EXERCISE. The Committee shall determine the time or times at
which an Option may be exercised in whole or in part, subject to
Section 7.1(e). The Committee shall also determine the performance or other
conditions, if any, that must be satisfied before all or part of an Option may
be exercised or vested.

    

    (d)           PAYMENT.
The Committee shall determine the methods by which the exercise price of an
Option may be paid, the form of payment, including, without limitation, cash,
Shares, or other property (including "cashless exercise" arrangements), and the
methods by which Shares shall be delivered or deemed to be delivered to
Participants.

    

    (e)           EXERCISE
TERM. No option granted under the Plan shall be exercisable for more than six
years from the Grant Date..

    

    (f)          
 NO DEFERRAL FEATURE. No Option shall provide for any feature for the
deferral of compensation other than the deferral of recognition of income until
the exercise or disposition of the Option.

    

    (g)           SUSPENSION.
Any Participant who is also a participant in the Retirement at Micron ("RAM")
Section 401(k) Plan and who requests and receives a hardship distribution
from the RAM Plan, is prohibited from making, and must suspend, his or her
employee elective contributions and employee contributions including, without
limitation on the foregoing, the exercise of any Option granted from the date of
receipt by that employee of the RAM hardship distribution.

     

    7.2.           INCENTIVE STOCK
OPTIONS.  The terms of any Incentive Stock Options granted
under the Plan must comply with the requirements of Section 422 of the
Code. If all of the requirements of Section 422 of the Code are not met,
the Option shall automatically become a Nonstatutory Stock Option.

    

    ARTICLE
8

    STOCK
APPRECIATION RIGHTS

     

    8.1.           GRANT OF STOCK APPRECIATION
RIGHTS.  The Committee is authorized to grant Stock
Appreciation Rights to Participants on the following terms and
conditions:

    

    (a)           RIGHT
TO PAYMENT.  Upon the exercise of a Stock Appreciation Right, the
Participant to whom it is granted has the right to receive the excess, if any,
of:

    

    (1)                 The
Fair Market Value of one Share on the date of exercise; over

    

    (2)                 The
base price of the Stock Appreciation Right as determined by the Committee, which
shall not be less than the Fair Market Value of one Share on the Grant
Date.

    

    
      
        
        

      

      
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    (b)           PROHIBITION
ON REPRICING.  Except as otherwise provided in Section 15.1, the
base price of a SAR may not be reduced, directly or indirectly by cancellation
and regrant or otherwise, without the prior approval of the shareholders of the
Company.

    

    (c)           EXERCISE
TERM.  No SAR granted under the Plan shall be exercisable for more
than six years from the Grant Date.

    

    (d)           NO
DEFERRAL FEATURE.  No SAR shall provide for any feature for the
deferral of compensation other than the deferral of recognition of income until
the exercise or disposition of the SAR.

    

    (e)           OTHER
TERMS.  All awards of Stock Appreciation Rights shall be evidenced by
an Award Certificate. Subject to the limitations of this Article 8, the
terms, methods of exercise, methods of settlement, form of consideration payable
in settlement, and any other terms and conditions of any Stock Appreciation
Right shall be determined by the Committee at the time of the grant of the Award
and shall be reflected in the Award Certificate.

    

    ARTICLE
9

    PERFORMANCE
SHARES

     

    9.1.           GRANT OF PERFORMANCE
SHARES.  The Committee is authorized to grant Performance
Shares to Participants on such terms and conditions as may be selected by the
Committee. The Committee shall have the complete discretion to determine the
number of Performance Shares granted to each Participant, subject to
Section 5.4, and to designate the provisions of such Performance Shares as
provided in Section 4.3. All Performance Shares shall be evidenced by an
Award Certificate or a written program established by the Committee, pursuant to
which Performance Shares are awarded under the Plan under uniform terms,
conditions and restrictions set forth in such written program.

     

    9.2.           PERFORMANCE
GOALS.  The Committee may establish performance goals for
Performance Shares which may be based on any criteria selected by the Committee.
Such performance goals may be described in terms of Company-wide objectives or
in terms of objectives that relate to the performance of the Participant, an
Affiliate or a division, region, department or function within the Company or an
Affiliate. If the Committee determines that a change in the business,
operations, corporate structure or capital structure of the Company or the
manner in which the Company or an Affiliate conducts its business, or other
events or circumstances render performance goals to be unsuitable, the Committee
may modify such performance goals in whole or in part, as the Committee deems
appropriate. If a Participant is promoted, demoted or transferred to a different
business unit or function during a performance period, the Committee may
determine that the performance goals or performance period are no longer
appropriate and may (i) adjust, change or eliminate the performance goals
or the applicable performance period as it deems appropriate to make such goals
and period comparable to the initial goals and period, or (ii) make a cash
payment to the participant in amount determined by the Committee. The foregoing
two sentences shall not apply with respect to an Award of Performance Shares
that is intended to be a Qualified Performance-Based Award.

     

    9.3.           RIGHT TO
PAYMENT.  The grant of a Performance Share to a Participant
will entitle the Participant to receive at a specified later time a specified
number of Shares, or the equivalent value in cash or other property, if the
performance goals established by the Committee are achieved and the other terms
and conditions thereof are satisfied. The Committee shall set performance goals
and other terms or conditions to payment of the Performance Shares in its
discretion which, depending on the extent to which they are met, will determine
the number of the Performance Shares that will be earned by the
Participant.

     

    9.4.           OTHER
TERMS.  Performance Shares may be payable in cash, Stock, or
other property, and have such other terms and conditions as determined by the
Committee and reflected in the Award Certificate.

    

    ARTICLE
10

    RESTRICTED
STOCK AND RESTRICTED STOCK UNIT AWARDS

     

    10.1.         GRANT OF RESTRICTED STOCK AND
RESTRICTED STOCK UNITS.  Subject to the terms and 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    conditions
of this Article 10, the Committee is authorized to make Awards of
Restricted Stock or Restricted Stock Units to Participants in such amounts and
subject to such terms and conditions as may be selected by the Committee. An
Award of Restricted Stock or Restricted Stock Units shall be evidenced by an
Award Certificate setting forth the terms, conditions, and restrictions
applicable to the Award.

     

    10.2.         ISSUANCE AND
RESTRICTIONS.  Restricted Stock or Restricted Stock Units shall
be subject to such restrictions on transferability and other restrictions as the
Committee may impose (including, without limitation, limitations on the right to
vote Restricted Stock or the right to receive dividends on the Restricted
Stock); provided, however, at a minimum, all Restricted Stock and Restricted
Stock Units shall be subject to the restrictions set forth in Section 14.4
for a period of no less than (a) one year from the date of award with
respect to Restricted Stock or Restricted Stock Units subject to restrictions
that lapse based upon satisfaction of performance goals, and (b) three
years from the date of award with respect to Restricted Stock or Restricted
Stock Units subject to time-based restrictions that lapse based upon one's
Continuous Status as a Participant. For avoidance of doubt, nothing in the
foregoing shall preclude any applicable restriction, including those set forth
in Section 14.4 hereof, from lapsing ratably, including, but not limited
to, roughly annual increments over three years, with respect to the Restricted
Stock or Restricted Stock Units referred to in Section 10.2(b). Moreover,
nothing in the foregoing shall preclude or be interpreted to preclude Awards to
Non-employee Directors from containing a period of restriction shorter than that
set forth above. Finally, nothing in this Section 10.2 shall be deemed or
interpreted to preclude the waiver, lapse or the acceleration of lapse, of any
restrictions with respect to Restricted Stock or Restricted Stock Units in
accordance with or as permitted by Sections 14.7 through Section 14.9,
respectively, Article 15 or any other provision of the Plan. Subject to the
remaining terms and conditions of the Plan, these restrictions may lapse
separately or in combination at such times, under such circumstances, in such
installments, upon the satisfaction of performance goals or otherwise, as the
Committee determines at the time of the grant of the Award or thereafter. Except
as otherwise provided in an Award Certificate or any special Plan document
governing an Award, the Participant shall have all of the rights of a
stockholder with respect to the Restricted Stock, and the Participant shall have
none of the rights of a stockholder with respect to Restricted Stock Units until
such time as Shares of Stock are paid in settlement of the Restricted Stock
Units.

     

    10.3.         FORFEITURE.  Except
as otherwise determined by the Committee at the time of the grant of the Award
or thereafter, upon termination of Continuous Status as a Participant during the
applicable restriction period or upon failure to satisfy a performance goal
during the applicable restriction period, Restricted Stock or Restricted Stock
Units that are at that time subject to restrictions shall be forfeited;
provided, however, that the Committee may provide in any Award Certificate,
subject to the terms and conditions of the Plan, that restrictions or forfeiture
conditions relating to Restricted Stock or Restricted Stock Units will be waived
in whole or in part in the event of terminations resulting from specified
causes, including, but not limited to, death, Disability, or for the convenience
or in the best interests of the Company.

     

    10.4.         DELIVERY OF RESTRICTED
STOCK.  Shares of Restricted Stock shall be delivered to the
Participant at the time of grant either by book-entry registration or by
delivering to the Participant, or a custodian or escrow agent (including,
without limitation, the Company or one or more of its employees) designated by
the Committee, a stock certificate or certificates registered in the name of the
Participant. If physical certificates representing shares of Restricted Stock
are registered in the name of the Participant, such certificates must bear an
appropriate legend referring to the terms, conditions, and restrictions
applicable to such Restricted Stock.

    

    ARTICLE
11

    DEFERRED
STOCK UNITS

     

    11.1.         GRANT OF DEFERRED STOCK
UNITS.  The Committee is authorized to grant Deferred Stock
Units to Participants subject to such terms and conditions as may be selected by
the Committee. Deferred Stock Units shall entitle the Participant to receive
Shares of Stock (or the equivalent value in cash or other property if so
determined by the Committee) at a future time as determined by the Committee, or
as determined by the Participant within guidelines established by the Committee
in the case of voluntary deferral elections. An Award of Deferred Stock Units
shall be evidenced by an Award Certificate setting forth the terms and
conditions applicable to the Award.

    

    ARTICLE
12

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    DIVIDEND
EQUIVALENTS

     

    12.1.         GRANT OF DIVIDEND
EQUIVALENTS.  The Committee is authorized to grant Dividend
Equivalents to Participants subject to such terms and conditions as may be
selected by the Committee. Dividend Equivalents shall entitle the Participant to
receive payments equal to dividends with respect to all or a portion of the
number of Shares subject to an Award, as determined by the Committee. The
Committee may provide that Dividend Equivalents be paid or distributed when
accrued or be deemed to have been reinvested in additional Shares, or otherwise
reinvested. Unless otherwise provided in the applicable Award Certificate,
Dividend Equivalents will be paid or distributed no later than the 15th day of
the 3rd month
following the later of (i) the calendar year in which the corresponding
dividends were paid to shareholders, or (ii) the first calendar year in
which the Participant's right to such Dividends Equivalents is no longer subject
to a substantial risk of forfeiture.

    

    ARTICLE
13

    STOCK
OR OTHER STOCK-BASED AWARDS

     

    13.1.         GRANT OF STOCK OR OTHER STOCK-BASED
AWARDS.  The Committee is authorized, subject to limitations
under applicable law, to grant to Participants such other Awards that are
payable in, valued in whole or in part by reference to, or otherwise based on or
related to Shares, as deemed by the Committee to be consistent with the purposes
of the Plan, including without limitation Shares awarded purely as a "bonus" and
not subject to any restrictions or conditions, convertible or exchangeable debt
securities, other rights convertible or exchangeable into Shares, and Awards
valued by reference to book value of Shares or the value of securities of or the
performance of specified Parents or Subsidiaries. The Committee shall determine
the terms and conditions of such Awards.

    

    ARTICLE
14

    PROVISIONS
APPLICABLE TO AWARDS

     

    14.1.         STAND-ALONE AND TANDEM
AWARDS.  Awards granted under the Plan may, in the discretion
of the Committee, be granted either alone or in addition to, in tandem with, any
other Award granted under the Plan. Subject to Section 16.2, awards granted
in addition to or in tandem with other Awards may be granted either at the same
time as or at a different time from the grant of such other Awards.

     

    14.2.         TERM OF AWARD.  The
term of each Award shall be for the period as determined by the Committee,
provided that in no event shall the term of any Incentive Stock Option or a
Stock Appreciation Right granted in tandem with the Incentive Stock Option
exceed a period of ten years from its Grant Date.

     

    14.3.    
    FORM
OF PAYMENT FOR AWARDS.  Subject to the terms of the Plan and
any applicable law or Award Certificate, payments or transfers to be made by the
Company or an Affiliate on the grant or exercise of an Award may be made in such
form as the Committee determines at or after the Grant Date, including without
limitation, cash, Stock, other Awards, or other property, or any combination,
and may be made in a single payment or transfer, in installments, or (except
with respect to Options or SARs) on a deferred basis, in each case determined in
accordance with rules adopted by, and at the discretion of, the
Committee.

     

    14.4.         LIMITS ON
TRANSFER.  No right or interest of a Participant in any
unexercised or restricted Award may be pledged, encumbered, or hypothecated to
or in favor of any party other than the Company or an Affiliate, or shall be
subject to any lien, obligation, or liability of such Participant to any other
party other than the Company or an Affiliate. No unexercised or restricted Award
shall be assignable or transferable by a Participant other than by will or the
laws of descent and distribution or, except in the case of an Incentive Stock
Option, pursuant to a domestic relations order that would satisfy
Section 414(p)(1)(A) of the Code if such Section applied to an Award under
the Plan; provided, however, that the Committee may (but need not) permit other
transfers where the Committee concludes that such transferability (i) does
not result in accelerated taxation, (ii) does not cause any Option intended
to be an Incentive Stock Option to fail to be described in Code
Section 422(b), and (iii) is otherwise appropriate and desirable,
taking into account any factors deemed relevant, including without limitation,
state or federal tax or securities laws applicable to transferable
Awards.

     

    14.5.         BENEFICIARIES.  Notwithstanding
Section 14.4, a Participant may, in the manner determined by the Committee,
designate a beneficiary to exercise the rights of the Participant and to receive
any distribution with 

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    respect
to any Award upon the Participant's death. A beneficiary, legal guardian, legal
representative, or other person claiming any rights under the Plan is subject to
all terms and conditions of the Plan and any Award Certificate applicable to the
Participant, except to the extent the Plan and Award Certificate otherwise
provide, and to any additional restrictions deemed necessary or appropriate by
the Committee. If no beneficiary has been designated or survives the
Participant, payment shall be made to the Participant's estate. Subject to the
foregoing, a beneficiary designation may be changed or revoked by a Participant
at any time provided the change or revocation is filed with the
Committee.

     

    14.6.         STOCK TRADING
RESTRICTIONS.  All Stock issuable under the Plan is subject to
any stop-transfer orders and other restrictions as the Committee deems necessary
or advisable to comply with federal or state securities laws, rules and
regulations and the rules of any national securities exchange or automated
quotation system on which the Stock is listed, quoted, or traded. The Committee
may place legends on any Stock certificate or issue instructions to the transfer
agent to reference restrictions applicable to the Stock.

     

    14.7.         ACCELERATION UPON A CHANGE IN
CONTROL.  Except as otherwise provided in the Award Certificate
or any special Plan document governing an Award, upon the occurrence of a Change
in Control, all outstanding Options, SARs, and other Awards in the nature of
rights that may be exercised shall become fully exercisable, and all time-based
vesting restrictions on outstanding Awards shall lapse. Except as otherwise
provided in the Award Certificate or any special Plan document governing an
Award, upon the occurrence of a Change in Control, the target payout
opportunities attainable under all outstanding performance-based Awards shall be
deemed to have been fully earned as of the effective date of the Change in
Control based upon an assumed achievement of all relevant performance goals at
the "target" level and there shall be prorata payout to Participants within
thirty (30) days following the effective date of the Change in Control (or
any later date required by Section 17.3 of the Plan) based upon the length
of time within the performance period that has elapsed prior to the Change in
Control.

     

    14.8.         ACCELERATION UPON DEATH OR
DISABILITY.  Except as otherwise provided in the Award
Certificate or any special Plan document governing an Award, upon the
Participant's death or Disability during his or her Continuous Status as a
Participant, (i) all of such Participant's outstanding Options, SARs, and
other Awards in the nature of rights that may be exercised shall become fully
exercisable, (ii) all time-based vesting restrictions on the Participant's
outstanding Awards shall lapse, and (iii) the target payout opportunities
attainable under all of such Participant's outstanding performance-based Awards
shall be deemed to have been fully earned as of the date of termination based
upon an assumed achievement of all relevant performance goals at the "target"
level and there shall be a prorata payout to the Participant or his or her
estate within thirty (30) days following the date of termination (or any
later date required by Section 17.3 of the Plan) based upon the length of
time within the performance period that has elapsed prior to the date of
termination. Any Awards shall thereafter continue or lapse in accordance with
the other provisions of the Plan and the Awards Certificate. To the extent that
this provision causes Incentive Stock Options to exceed the dollar limitation
set forth in Code Section 422(d), the excess Options shall be deemed to be
Nonstatutory Stock Options.

     

    14.9.         ACCELERATION FOR ANY OTHER
REASON.  Regardless of whether an event has occurred as
described in Section 14.7 or 14.8 above, and subject to Section 14.11
as to Qualified Performance-Based Awards, the Committee may in its sole
discretion at any time determine that all or a portion of a Participant's
Options, SARs, and other Awards in the nature of rights that may be exercised
shall become fully or partially exercisable, that all or a part of the
time-based vesting restrictions on all or a portion of the outstanding Awards
shall lapse, and/or that any performance-based criteria with respect to any
Awards shall be deemed to be wholly or partially satisfied, in each case, as of
such date as the Committee may, in its sole discretion, declare; provided,
however, the Committee shall not exercise such discretion with respect to Full
Value Awards comprised of Shares of Restricted Stock or Restricted Stock Units
which, in the aggregate, exceed five percent (5%) of the aggregate number of
Shares reserved and available for issuance pursuant to Awards granted under the
Plan; provided, further, that when calculating whether the five percent (5%)
maximum has been reached, the Committee shall not count or consider any Shares
of Restricted Stock or Restricted Stock Units granted to Non-Employee Directors
or regarding which the Committee accelerated vesting rights, waived restrictions
or determined performance-based criteria had been satisfied resulting from an
event described in Section 14.7, Article 15, a Participant's
termination of employment or separation from service resulting from death,
Disability or for the convenience or in the bests interests of the Company. The
Committee may discriminate among Participants and among Awards granted to a
Participant in exercising its discretion pursuant to this
Section 14.9.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    14.10.       EFFECT OF
ACCELERATION.  If an Award is accelerated under
Section 14.7, Section 14.8 or Section 14.9, the Committee may, in
its sole discretion, provide (i) that the Award will expire after a
designated period of time after such acceleration to the extent not then
exercised, (ii) that the Award will be settled in cash rather than Stock,
(iii) that the Award will be assumed by another party to a transaction
giving rise to the acceleration or otherwise be equitably converted or
substituted in connection with such transaction, (iv) that the Award may be
settled by payment in cash or cash equivalents equal to the excess of the Fair
Market Value of the underlying Stock, as of a specified date associated with the
transaction, over the exercise price of the Award, or (v) any combination
of the foregoing. The Committee's determination need not be uniform and may be
different for different Participants whether or not such Participants are
similarly situated. To the extent that such acceleration causes Incentive Stock
Options to exceed the dollar limitation set forth in Code Section 422(d),
the excess Options shall be deemed to be Nonstatutory Stock
Options.

     

    14.11.       QUALIFIED PERFORMANCE-BASED
AWARDS.

    

    (a)                 The
provisions of the Plan are intended to ensure that all Options and Stock
Appreciation Rights granted hereunder to any Covered Employee shall qualify for
the Section 162(m) Exemption; provided that the exercise or base price of
such Award is not less than the Fair Market Value of the Shares on the Grant
Date.

    

    (b)                 When
granting any other Award, the Committee may designate such Award as a Qualified
Performance-Based Award, based upon a determination that the recipient is or may
be a Covered Employee with respect to such Award, and the Committee wishes such
Award to qualify for the Section 162(m) Exemption. If an Award is so
designated, the Committee shall establish performance goals for such Award
within the time period prescribed by Section 162(m) of the Code based on
one or more of the following Qualified Business Criteria, which may be expressed
in terms of Company-wide objectives or in terms of objectives that relate to the
performance of an Affiliate or a unit, division, region, department or function
within the Company or an Affiliate:

    

    
      	
              ·  

            	
              Gross
      and/or net revenue (including whether in the aggregate or attributable to
      specific products)

            

    

    

    
      	
              ·  

            	
              Cost
      of Goods Sold and Gross Margin

            

    

    

    
      	
              ·  

            	
              Costs
      and expenses, including Research & Development and Selling,
      General & Administrative

            

    

    

    
      	
              ·  

            	
              Income
      (gross, operating, net, etc.)

            

    

    

    
      	
              ·  

            	
              Earnings,
      including before interest, taxes, depreciation and amortization (whether
      in the aggregate or on a per share
basis

            

    

    

    
      	
              ·  

            	
              Cash
      flows and share price

            

    

    

    
      	
              ·  

            	
              Return
      on investment, capital, equity

            

    

    

    
      	
              ·  

            	
              Manufacturing
      efficiency (including yield enhancement and cycle time reductions),
      quality improvements and customer
satisfaction

            

    

    

    
      	
              ·  

            	
              Product
      life cycle management (including product and technology design,
      development, transfer, manufacturing introduction, and sales price
      optimization and management)

            

    

    

    
      	
              ·  

            	
              Economic
      profit or loss

            

    

    

    
      	
              ·  

            	
              Market
      share

            

    

    

    
      	
              ·  

            	
              Employee
      retention, compensation, training and development, including succession
      planning

            

    

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    
      	
              ·  

            	
              Objective
      goals consistent with the Participant's specific duties and
      responsibilities, designed to further the financial, operational and other
      business interests of the Company, including goals and objectives with
      respect to regulatory compliance
matters.

            

    

    

    Performance goals with respect to the
foregoing Qualified Business Criteria may be specified in absolute terms
(including completion of pre-established projects, such as the introduction of
specified products), in percentages, or in terms of growth from period to period
or growth rates over time as well as measured relative to an established or
specially-created performance index of Company competitors, peers or other
members of high tech industries. Any member of an index that disappears during a
measurement period shall be disregarded for the entire measurement period.
Performance Goals need not be based upon an increase or positive result under a
business criterion and could include, for example, the maintenance of the status
quo or the limitation of economic losses (measured, in each case, by reference
to a specific business criterion).

    

    (c)                 Each
Qualified Performance-Based Award (other than an Option or SAR) shall be earned,
vested and payable (as applicable) only upon the achievement of performance
goals established by the Committee based upon one or more of the Qualified
Business Criteria, together with the satisfaction of any other conditions,
including the condition as to continued employment as set forth in subsection
(g) below, as the Committee may determine to be appropriate; provided,
however, that the Committee may provide, in its sole and absolute discretion,
either in connection with the grant thereof or by amendment thereafter, that
achievement of such performance goals will be waived upon the death or
Disability of the Participant, or upon a Change in Control. In addition, the
Committee has the right, in connection with the grant of a Qualified
Performance-Based Award, to exercise negative discretion to determine that the
portion of such Award actually earned, vested and /or payable (as applicable)
shall be less than the portion that would be earned, vested and/or payable based
solely upon application of the applicable performance goals. Performance periods
established by the Committee for any such Qualified Performance-Based Award may
be as short as ninety (90) days and may be any longer period.

    

    (d)                 The
Committee may provide in any Qualified Performance-Based Award, at the time the
performance goals are established, that any evaluation of performance shall
include, exclude or otherwise equitably adjust for any of the following events
that occurs during a performance period: (a) asset write-downs or
impairment charges; (b) litigation or claim judgments or settlements;
(c) the effect of changes in tax laws, accounting principles or other laws
or provisions affecting reported results; (d) accruals for reorganization
and restructuring programs; (e) extraordinary nonrecurring items as
described in Accounting Principles Board Opinion No. 30 and /or in
management's discussion and analysis of financial condition and results of
operations appearing in the Company's annual report to stockholders for the
applicable year; (f) acquisitions or divestitures; and (g) foreign
exchange gains and losses. To the extent such inclusions or exclusions affect
Awards to Covered Employees, they shall be prescribed in a form and at a time
that meets the requirements of Code Section 162(m) for
deductibility.

    

    (e)                 Any
payment of a Qualified Performance-Based Award granted with performance goals
pursuant to subsection (c) above shall be conditioned on the written
certification of the Committee in each case that the performance goals and any
other material conditions were satisfied. Written certification may take the
form of a Committee resolution passed by a majority of the Committee at a
properly convened meeting or through unanimous action by the Committee via
action by written consent. The certification requirement also may be satisfied
by a separate writing executed by the Chairman of the Committee, acting in his
capacity as such, following the foregoing Committee action or by the Chairman
executing approved minutes of the Committee in which such determinations were
made. Except as specifically provided in subsection (c), no Qualified
Performance-Based Award held by a Covered Employee or an employee who in the
reasonable judgment of the Committee may be a Covered Employee on the date of
payment, may be amended, nor may the Committee exercise any discretionary
authority it may otherwise have under the Plan with respect to a Qualified
Performance-Based Award under the Plan, in any manner to waive the achievement
of the applicable performance goal based on Qualified Business Criteria or to
increase the amount payable pursuant thereto or the value thereof, or otherwise
in a manner that would cause the Qualified Performance-Based Award to cease to
qualify for the Section 162(m) Exemption.

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    (f)                 Section 5.4
sets forth the maximum number of Shares that may be granted in any one-year
period to a Participant in designated forms of stock-based Awards.

    

    (g)                 With
respect to a Participant who is an officer of the Company, any payment of a
Qualified Performance-Based Award granted with performance goals pursuant to
subsection (c) above shall be conditioned on the officer having remained
continuously employed by the Company or an Affiliate for the entire performance
or measurement period, including, as well, through the date of determination and
certification of the payment of any such Award pursuant to subsection
(e) above (the "Certification Date"). For purposes of the Plan, with
respect to any given performance or measurement period, an officer of the
Company (i) who terminates employment (regardless of cause) or who
otherwise ceases to be an officer, prior to the Certification Date, and
(ii) who, pursuant to a separate contractual arrangement with the Company
is entitled to receive payments from the Company thereunder extending to or
beyond such Certification Date as a result of such termination or cessation in
officer status, shall be deemed to have been employed by the Company as an
officer through the Certification Date for purposes of payment
eligibility.

     

    14.12.       TERMINATION OF
EMPLOYMENT.  Whether military, government or other service or
other leave of absence shall constitute a termination of employment shall be
determined in each case by the Committee at its discretion, and any
determination by the Committee shall be final and conclusive. A Participant's
Continuous Status as a Participant shall not be deemed to terminate (i) in
a circumstance in which a Participant transfers from the Company to an
Affiliate, transfers from an Affiliate to the Company, or transfers from one
Affiliate to another Affiliate, or (ii) in the discretion of the Committee
as specified at or prior to such occurrence, in the case of a spin-off, sale or
disposition of the Participant's employer from the Company or any Affiliate. To
the extent that this provision causes Incentive Stock Options to extend beyond
three months from the date a Participant is deemed to be an employee of the
Company, a Parent or Subsidiary for purposes of Sections 424(e) and 424(f) of
the Code, the Options held by such Participant shall be deemed to be
Nonstatutory Stock Options.

     

    14.13.       FORFEITURE
EVENTS.  The Committee may specify in an Award Certificate that
the Participant's rights, payments and benefits with respect to an Award shall
be subject to reduction, cancellation, forfeiture or recoupment upon the
occurrence of certain specified events, in addition to any otherwise applicable
vesting or performance conditions of an Award. Such events shall include, but
shall not be limited to, termination of employment for cause, violation of
material Company or Affiliate policies, breach of noncompetition,
confidentiality or other restrictive covenants that may apply to the
Participant, or other conduct by the Participant that is detrimental to the
business or reputation of the Company or any Affiliate.

     

    14.14.       SUBSTITUTE
AWARDS.  The Committee may grant Awards under the Plan in
substitution for stock and stock-based awards held by employees of another
entity who become employees of the Company or an Affiliate as a result of a
merger or consolidation of the former employing entity with the Company or an
Affiliate or the acquisition by the Company or an Affiliate of property or stock
of the former 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.

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    ARTICLE
15

    CHANGES
IN CAPITAL STRUCTURE

     

    15.1.         MANDATORY
ADJUSTMENTS.  In the event of a nonreciprocal transaction
between the Company and its stockholders that causes the per-share value of the
Stock to change (including, without limitation, any stock dividend, stock split,
spin-off, rights offering, or large nonrecurring cash dividend), the
authorization limits under Section 5.1 and 5.4 shall be adjusted
proportionately, and the Committee shall make such adjustments to the Plan and
Awards as it deems necessary, in its sole discretion, to prevent dilution or
enlargement of rights immediately resulting from such transaction. Action by the
Committee may include: (i) adjustment of the number and kind of shares that
may be delivered under the Plan; (ii) adjustment of the number and kind of
shares subject to outstanding Awards; (iii) adjustment of the exercise
price of outstanding Awards or the measure to be used to determine the amount of
the benefit payable on an Award; and (iv) any other adjustments that the
Committee determines to be equitable. Without limiting the foregoing, in the
event of a subdivision of the outstanding Stock (stock-split), a declaration of
a dividend payable in Shares, or a combination or consolidation of the
outstanding Stock into a lesser number of Shares, the authorization limits under
Section 5.1 and 5.4 shall automatically be adjusted proportionately, and
the Shares then subject to each Award shall automatically, without the necessity
for any additional action by the Committee, be adjusted proportionately without
any change in the aggregate purchase price therefor.

     

    15.2.         DISCRETIONARY
ADJUSTMENTS.  Upon the occurrence or in anticipation of any
corporate event or transaction involving the Company (including, without
limitation, any merger, reorganization, recapitalization, combination or
exchange of shares, or any transaction described in Section 15.1), the
Committee may, in its sole discretion, provide (i) that Awards will be
settled in cash rather than Stock, (ii) that Awards will become immediately
vested and exercisable and will expire after a designated period of time to the
extent not then exercised, (iii) that Awards will be assumed by another
party to a transaction or otherwise be equitably converted or substituted in
connection with such transaction, (iv) that outstanding Awards may be
settled by payment in cash or cash equivalents equal to the excess of the Fair
Market Value of the underlying Stock, as of a specified date associated with the
transaction, over the exercise price of the Award, (v) that performance
targets and performance periods for Performance Awards will be modified,
consistent with Code Section 162(m) where applicable, or (vi) any
combination of the foregoing. The Committee's determination need not be uniform
and may be different for different Participants whether or not such Participants
are similarly situated.

     

    15.3.         GENERAL.  Any
discretionary adjustments made pursuant to this Article 15 shall be subject
to the provisions of Section 16.2. To the extent that any adjustments made
pursuant to this Article 15 cause Incentive Stock Options to cease to
qualify as Incentive Stock Options, such Options shall be deemed to be
Nonstatutory Stock Options.

    

    ARTICLE
16

    AMENDMENT,
MODIFICATION AND TERMINATION

    16.1.         AMENDMENT, MODIFICATION AND
TERMINATION.  The Board or the Committee may, at any time and
from time to time, amend, modify or terminate the Plan without stockholder
approval; provided, however, that if an amendment to the Plan would, in the
reasonable opinion of the Board or the Committee, either (i) materially
increase the number of Shares available under the Plan, (ii) expand the
types of awards under the Plan, (iii) materially expand the class of
participants eligible to participate in the Plan, (iv) materially extend
the term of the Plan, or (v) otherwise constitute a material change
requiring stockholder approval under applicable laws, policies or regulations or
the applicable listing or other requirements of an Exchange, then such amendment
shall be subject to stockholder approval; and provided, further, that the Board
or Committee may condition any other amendment or modification on the approval
of stockholders of the Company for any reason, including by reason of such
approval being necessary or deemed advisable to (i) to comply with the
listing or other requirements of an Exchange, or (ii) to satisfy any other
tax, securities or other applicable laws, policies or regulations.

     

    16.2.          AWARDS PREVIOUSLY
GRANTED.  At any time and from time to time, the Committee may
amend, modify or terminate any outstanding Award without approval of the
Participant; provided, however:

    

    (a)                 Subject
to the terms of the applicable Award Certificate, such amendment, modification
or termination shall not, without the Participant's consent, reduce or diminish
the value of such Award 

     

    
      
        
        

      

      
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    determined
as if the Award had been exercised, vested, cashed in or otherwise settled on
the date of such amendment or termination (with the per-share value of an Option
or Stock Appreciation Right for this purpose being calculated as the excess, if
any, of the Fair Market Value as of the date of such amendment or termination
over the exercise or base price of such Award);

    

    (b)                 The
original term of an Option may not be extended without the prior approval of the
stockholders of the Company;

    

    (c)                 Except
as otherwise provided in Article 15, the exercise price of an Option may
not be reduced, directly or indirectly, without the prior approval of the
stockholders of the Company; and

    

    (d)                 No
termination, amendment, or modification of the Plan shall adversely affect any
Award previously granted under the Plan, without the written consent of the
Participant affected thereby. An outstanding Award shall not be deemed to be
"adversely affected" by a Plan amendment if such amendment would not reduce or
diminish the value of such Award determined as if the Award had been exercised,
vested, cashed in or otherwise settled on the date of such amendment (with the
per-share value of an Option or Stock Appreciation Right for this purpose being
calculated as the excess, if any, of the Fair Market Value as of the date of
such amendment over the exercise or base price of such Award).

     

    16.3.         COMPLIANCE
AMENDMENTS.  Notwithstanding anything in the Plan or in any
Award Certificate to the contrary, the Committee may amend the Plan or an Award
Certificate, to take effect retroactively or otherwise, as deemed necessary or
advisable for the purpose of conforming the Plan or Award Certificate to any
present or future law relating to plans of this or similar nature (including,
but not limited to, Section 409A of the Code), and to the administrative
regulations and rulings promulgated thereunder. By accepting an Award under this
Plan, a Participant agrees to any amendment made pursuant to this
Section 16.3 to any Award granted under the Plan without further
consideration or action.

    

    ARTICLE
17

    GENERAL
PROVISIONS

     

    17.1.          NO RIGHTS TO AWARDS; NON-UNIFORM
DETERMINATIONS.  No Participant or any Eligible Participant
shall have any claim to be granted any Award under the Plan. Neither the
Company, its Affiliates nor the Committee is obligated to treat Participants or
Eligible Participants uniformly, and determinations made under the Plan may be
made by the Committee selectively among Eligible Participants who receive, or
are eligible to receive, Awards (whether or not such Eligible Participants are
similarly situated).

     

    17.2.          NO STOCKHOLDER
RIGHTS.  No Award gives a Participant any of the rights of a
stockholder of the Company unless and until Shares are in fact issued to such
person in connection with such Award.

     

    17.3.          SPECIAL PROVISIONS RELATED TO
SECTION 409A OF THE CODE.

    

    (a)                 Notwithstanding
anything in the Plan or in any Award Certificate to the contrary, to the extent
that any amount or benefit that would constitute non-exempt "deferred
compensation" for purposes of Section 409A of the Code would otherwise be
payable or distributable under the Plan or any Award Certificate by reason of
the occurrence of a Change in Control, or the Participant's Disability or
separation from service, such amount or benefit will not be payable or
distributable to the Participant by reason of such circumstance unless
(i) the circumstances giving rise to such Change in Control, Disability or
separation from service meet any description or definition of "change in control
event", "disability" or "separation from service", as the case may be, in
Section 409A of the Code and applicable regulations (without giving effect
to any elective provisions that may be available under such definition), or
(ii) the payment or distribution of such amount or benefit would be exempt
from the application of Section 409A of the Code by reason of the
short-term deferral exemption or otherwise. This provision does not prohibit the
vesting of any Award
upon a Change in Control, Disability or separation from service, however
defined. If this provision prevents the payment or distribution of any amount or
benefit, such payment or distribution shall be made on the next earliest payment
or distribution date or event specified in the Award Certificate that is
permissible under Section 409A.

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    (b)                 If
any one or more Awards granted under the Plan to a Participant could qualify for
any separation pay exemption described in Treas. Reg.
Section 1.409A-1(b)(9), but such Awards in the aggregate exceed the dollar
limit permitted for the separation pay exemptions, the Company (acting through
the Committee or the Company's President) shall determine which Awards or
portions thereof will be subject to such exemptions.

    

    (c)                 Notwithstanding
anything in the Plan or in any Award Certificate to the contrary, if any amount
or benefit that would constitute non-exempt "deferred compensation" for purposes
of Section 409A of the Code would otherwise be payable or distributable
under this Plan or any Award Certificate by reason of a Participant's separation
from service during a period in which the Participant is a Specified Employee
(as defined below), then, subject to any permissible acceleration of payment by
the Committee under Treas. Reg. Section 1.409A-3(j)(4)(ii) (domestic
relations order), (j)(4)(iii) (conflicts of interest), or
(j)(4)(vi) (payment of employment taxes):

    

    (i)      if
the payment or distribution is payable in a lump sum, the Participant's right to
receive payment or distribution of such non-exempt deferred compensation will be
delayed until the earlier of the Participant's death or the first day of the
seventh month following the Participant's separation from service;
and

    

    (ii)     if
the payment or distribution is payable over time, the amount of such non-exempt
deferred compensation that would otherwise be payable during the six-month
period immediately following the Participant's separation from service will be
accumulated and the Participant's right to receive payment or distribution of
such accumulated amount will be delayed until the earlier of the Participant's
death or the first day of the seventh month following the Participant's
separation from service, whereupon the accumulated amount will be paid or
distributed to the Participant and the normal payment or distribution schedule
for any remaining payments or distributions will resume.

    

    For purposes of this Plan, the term
"Specified Employee" has the meaning given such term in Code Section 409A
and the final regulations thereunder, provided, however, that, as
permitted in such final regulations, the Company's Specified Employees and its
application of the six-month delay rule of Code
Section 409A(a)(2)(B)(i) shall be determined in accordance with rules
adopted by the Board or any committee of the Board, which shall be applied
consistently with respect to all nonqualified deferred compensation arrangements
of the Company, including this Plan.

     

    17.4.         WITHHOLDING.  The
Company or any Affiliate shall have the authority and the right to deduct or
withhold, or require a Participant to remit to the Company, an amount sufficient
to satisfy federal, state, and local taxes (including the Participant's FICA
obligation) required by law to be withheld with respect to any exercise, lapse
of restriction or other taxable event arising as a result of the Plan. With
respect to withholding required upon any taxable event under the Plan, the
Committee may, at the time the Award is granted or thereafter, require or permit
that any such withholding requirement be satisfied, in whole or in part, by
withholding from the Award Shares having a Fair Market Value on the date of
withholding equal to the minimum amount (and not any greater amount) required to
be withheld for tax purposes, all in accordance with such procedures as the
Committee establishes. All such elections shall be subject to any restrictions
or limitations that the Committee, in its sole discretion, deems
appropriate.

     

    17.5.         NO RIGHT TO CONTINUED
SERVICE.  Nothing in the Plan, any Award Certificate or any
other document or statement made with respect to the Plan, shall interfere with
or limit in any way the right of the Company or any Affiliate to terminate any
Participant's employment or status as an officer, director or consultant at any
time, nor confer upon any Participant any right to continue as an employee,
officer, director or consultant of the Company or any Affiliate, whether for the
duration of a Participant's Award or otherwise. Neither an Award nor any
benefits arising under this Plan shall constitute an employment contract with
the Company or any Affiliate and, accordingly, subject to Article 16, this
Plan and the benefits hereunder may be terminated at any time in the sole and
exclusive discretion of the Board of Directors without giving rise to any
liability on the part of the Company or an of its Affiliates.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    17.6.         UNFUNDED STATUS OF
AWARDS.  The Plan is intended to be an "unfunded" plan for
incentive and deferred compensation. With respect to any payments not yet made
to a Participant pursuant to an Award, nothing contained in the Plan or any
Award Certificate shall give the Participant any rights that are greater than
those of a general creditor of the Company or any Affiliate. This Plan is not
intended to be subject to ERISA.

     

    17.7.         RELATIONSHIP TO OTHER
BENEFITS.  No payment under the Plan shall be taken into
account in determining any benefits under any pension, retirement, savings,
profit sharing, group insurance, welfare or benefit plan of the Company or any
Affiliate unless provided otherwise in such other plan.

     

    17.8.         EXPENSES.  The
expenses of administering the Plan shall be borne by the Company and its
Affiliates.

     

    17.9.         TITLES AND
HEADINGS.  The titles and headings of the Sections in the Plan
are for convenience of reference only, and in the event of any conflict, the
text of the Plan, rather than such titles or headings, shall
control.

     

    17.10.       GENDER AND
NUMBER.  Except where otherwise indicated by the context, any
masculine term used herein also shall include the feminine; the plural shall
include the singular and the singular shall include the plural.

     

    17.11.       FRACTIONAL
SHARES.  No fractional Shares shall be issued and the Committee
shall determine, in its discretion, whether cash shall be given in lieu of
fractional Shares or whether such fractional Shares shall be eliminated by
rounding up or down.

     

    17.12.       GOVERNMENT AND OTHER
REGULATIONS.

    

    (a)                 Notwithstanding
any other provision of the Plan, no Participant who acquires Shares pursuant to
the Plan may, during any period of time that such Participant is an affiliate of
the Company (within the meaning of the rules and regulations of the Securities
and Exchange Commission under the 1933 Act), sell such Shares, unless such offer
and sale is made (i) pursuant to an effective registration statement under
the 1933 Act, which is current and includes the Shares to be sold, or
(ii) pursuant to an appropriate exemption from the registration requirement
of the 1933 Act, such as that set forth in Rule 144 promulgated under the
1933 Act.

    

    (b)                 Notwithstanding
any other provision of the Plan, if at any time the Committee shall determine
that the registration, listing or qualification of the Shares covered by an
Award upon any Exchange or under any foreign, federal, state or local law or
practice, or the consent or approval of any governmental regulatory body, is
necessary or desirable as a condition of, or in connection with, the granting of
such Award or the purchase or receipt of Shares thereunder, no Shares may be
purchased, delivered or received pursuant to such Award unless and until such
registration, listing, qualification, consent or approval shall have been
effected or obtained free of any condition not acceptable to the Committee. Any
Participant receiving or purchasing Shares pursuant to an Award shall make such
representations and agreements and furnish such information as the Committee may
request to assure compliance with the foregoing or any other applicable legal
requirements. The Company shall not be required to issue or deliver any
certificate or certificates for Shares under the Plan prior to the Committee's
determination that all related requirements have been fulfilled. The Company
shall in no event be obligated to register any securities pursuant to the 1933
Act or applicable state or foreign law or to take any other action in order to
cause the issuance and delivery of such certificates to comply with any such
law, regulation or requirement.

     

    17.13.       GOVERNING LAW.  To
the extent not governed by federal law, the Plan and all Award Certificates
shall be construed in accordance with and governed by the laws of the State of
Delaware.

     

    17.14.        ADDITIONAL
PROVISIONS.  Each Award Certificate may contain such other
terms and conditions as the Committee may determine; provided that such other
terms and conditions are not inconsistent with the provisions of the
Plan.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    17.15.       NO LIMITATIONS ON RIGHTS OF
COMPANY.  The grant of any Award shall not in any way affect
the right or power of the Company to make adjustments, reclassification or
changes in its capital or business structure or to merge, consolidate, dissolve,
liquidate, sell or transfer all or any part of its business or assets. The Plan
shall not restrict the authority of the Company, for proper corporate purposes,
to draft or assume awards, other than under the Plan, to or with respect to any
person. If the Committee so directs, the Company may issue or transfer Shares to
an Affiliate, for such lawful consideration as the Committee may specify, upon
the condition or understanding that the Affiliate will transfer such Shares to a
Participant in accordance with the terms of an Award granted to such Participant
and specified by the Committee pursuant to the provisions of the
Plan.

    

    17.16.       INDEMNIFICATION.  Each
person who is or shall have been a member of the Committee, or of the Board, or
an officer of the Company to whom authority was delegated in accordance with
Article 4 shall be indemnified and held harmless by the Company against and
from any loss, cost, liability, or expense that may be imposed upon or
reasonably incurred by him or her in connection with or resulting from any
claim, action, suit, or proceeding to which he or she may be a party or in which
he or she may be involved by reason of any action taken or failure to act under
the Plan and against and from any and all amounts paid by him or her in
settlement thereof, with the Company's approval, or paid by him or her in
satisfaction of any judgment in any such action, suit, or proceeding against him
or her, provided he or she shall give the Company an opportunity, at its own
expense, to handle and defend the same before he or she undertakes to handle and
defend it on his or her own behalf, unless such loss, cost, liability, or
expense is a result of his or her own willful misconduct or except as expressly
provided by statute. The foregoing right of indemnification shall not be
exclusive of any other rights of indemnification to which such persons may be
entitled under the Company's Certificate of Incorporation or Bylaws, as a matter
of law, or otherwise, or any power that the Company may have to indemnify them
or hold them harmless.

    20

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