Document:

exv10w34

 

Exhibit 10.34

December 21, 2006

Mr. Gregory W. Gurley

9003 Sand Ridge Drive

Holland, OH 43528

Dear Greg:

This letter confirms our offer for you to join Huttig Building Products, Inc., as Vice President
— Marketing and Product Management reporting to Jon Vrabely, President and Chief Executive Officer.
It is anticipated that your employment with the Company will begin no
later than January 29, 2007.

This offer is contingent on your satisfactory completion of the requirements of our pre-employment
screening process, in accordance with company policy, which may include drug testing, background
inquiries, criminal background check, and possibly a motor vehicle history. In addition, because
the U.S. Immigration Reform and Control Act requires employers to verify employment eligibility for
all new hires, your employment with Huttig depends on successful verification of eligibility within
three days of your start date.

Compensation

Your annual base salary will be $225,000, which will be paid semi-monthly. You will also receive a
$10,000 signing bonus, payable within the first 30 days of your employment. As the Vice President
— Marketing and Product Management, you will be eligible to participate in and receive bonus awards
under the Company’s Executive Incentive Plan, which is based on a calculation of Economic Value
Added and which may change from time to time as approved by the Compensation Committee of the Board
of Directors. In addition, we will recommend to the Board of Directors that you be awarded 20,000
shares of restricted stock. The amount of the grant and effective date is at the discretion of the
Board, but is expected to be between April 1 through April 30, 2007.

You will be provided a company-leased vehicle in accordance with the Company leased vehicle program
or $650 per month in lieu of being furnished a company leased vehicle. The Company will also
provide you with a laptop and cell phone.

Relocation

As a condition of your employment with the Company, you will be required to relocate to the St.
Louis, Missouri, area. Therefore, the Company will provide with the relocation benefits described
in Policy HP-414, Relocation Expense. The Company will also provide you with temporary housing for
up to a 6-month period.

Employee Benefits

Since you will be classified as a full-time salaried employee, you and any eligible family members
will be qualified to participate in our group health insurance plan and our 401(k) plan effective
on the first day of the month following 30 calendar days of continuous employment. You will also be
eligible to purchase Huttig Building Products common stock through the Employee Stock Purchase Plan
upon commencement of your employment.

 

 

Vacation Eligibility

On an annual basis, you will be entitled to 15 days of vacation.

By your signature below, you acknowledge that your employment with Huttig is an “at will”
relationship for no definite time period and can be terminated at any time, with or without notice,
and with or without cause, by either party.

We are excited to extend to you this offer of employment and look forward to working with you. If
you have any questions, please feel free to contact me at 314-216-2615.

Yours truly,

/s/ Jon P. Vrabely

Jon Vrabely

President and Chief Executive Officer

	 	 	 	 	 	 	 	 	 
	Accepted

	 	/s/ Gregory W. Gurley
	 	Date
	 	12/26/06	 	 
	 

	 	 

Gregory W. Gurley
	 	 	 	 

	 	 

cc:                 Darlene Schroeder, Vice President — Human Resourcesexv10w35

 

Exhibit 10.35

Compensation Arrangements for 

Certain Named Executive Officers

Set forth below is a summary of the compensation arrangements of the executive officers to be named
in the Company’s 2008 Proxy Statement for the Annual Meeting of Stockholders, other than Mr. Jon P.
Vrabely, the Company’s President and Chief Executive Officer, who is covered by a written
employment agreement filed as an exhibit to the Company’s Annual Report on Form 10-K for the year
ended December 31, 2007 (the “Form 10-K”).

Each of the executive officers named below is an employee at will whose compensation and
employment status may be changed at any time in the discretion of the Company’s Board of
Directors.

Base Salaries. On February 15, 2008, the base salaries of the executive officers are as set forth
below:

	 	 	 	 	 
	Name and Position	 	Base Salary Amount
	David L. Fleisher, Vice President, Chief Financial
Officer and Secretary
	 	$	300,000	 
	Greg W. Gurley, Vice President, Product Management and
Marketing
	 	$	225,000	 
	Brian D. Robinson, Vice President,  Chief Information Officer
	 	$	199,500	 
	Richard A. Baltz, Vice President, Internal Audit
	 	$	190,000	 

Base salaries are adjusted from time to time. Any such adjustments are approved by the
Management Organization and Compensation Committee.

Bonuses and Equity Awards. These executive officers are also eligible to participate in the
Company’s annual incentive compensation plans and equity incentive compensation plans, as provided
in the terms of such plans. Such plans, and any forms of awards thereunder providing for material
terms, are included as exhibits to the Form 10-K.exv10w36

 

EXHIBIT 10.36

COMPENSATION ARRANGEMENTS FOR OUTSIDE DIRECTORS

Cash Compensation

The Board of Directors approved a 10% reduction in cash compensation to outside directors,
effective January 1, 2008. Effective as of that date, the cash fees paid to outside directors are as
set forth below.

     Chairman of the Board

The Chairman of the Board of Directors, Mr. R.S. Evans, receives a cash retainer fee of $90,000
per year. Mr. Evans receives no other cash compensation for his service on the Board and its
Committees.

     Other Non-Employee Directors

Non-employee directors, other than Mr. Evans, receive the following cash compensation:

	•	 	$22,500 annual Board retainer
	 
	•	 	$9,000 annual retainer for chairman of the Audit Committee
	 
	•	 	$1,350 annual retainer for other Audit Committee members
	 
	•	 	$2,700 annual retainer for chairman of the Management Organization and Compensation Committee
	 
	•	 	$1,800 annual retainer for Executive Committee members
	 
	•	 	$1,800 for each Board meeting and Committee meeting attended

Stock Compensation

Non-employee directors are awarded, on the date of the Annual Meeting of Stockholders, an annual
grant of restricted stock units (“RSUs”) for shares of Company common stock having a value of
approximately $15,000 on the date of grant. The RSUs vest in full on the date of the next Annual
Meeting of Stockholders or upon a change in control of the Company. The shares of stock represented
by vested RSUs are delivered to the director upon cessation of his service on the Board. All
unvested RSUs are forfeited upon cessation of a director’s service on the Board for any reason.
Each non-employee director received a grant of 2,205 RSUs on April 23, 2007, with a value of
approximately $15,000, based on the fair market value of Company common stock on that date. These
RSUs vest on April 21, 2008, the date of the 2008 Annual Meeting of Stockholders.

The Company reimburses its directors for reasonable expenses incurred in attending Board and
Committee meetings.exv10w23

 

Exhibit 10.23

Digital River, Inc.

2007 Equity Incentive Plan

1. Purposes.

     (a) Eligible Stock Award Recipients. The persons eligible to receive Stock Awards are
Employees, Directors and Consultants.

     (b) Available Stock Awards. The purpose of the Plan is to provide a means by which eligible
recipients of Stock Awards may be given an opportunity to benefit from increases in the value of
the Common Stock through the granting of the following types of awards: (i) Incentive Stock
Options; (ii) Nonstatutory Stock Options; (iii) Restricted Stock Awards; (iv) Restricted Stock
Units Awards; and (v) Performance Shares.

     (c) General Purpose. The Company, by means of the Plan, seeks to retain the services of the
group of persons eligible to receive Stock Awards, to secure and retain the services of new members
of this group, to provide incentives for such persons to exert maximum efforts for the success of
the Company and its Affiliates, and to align the interests of such persons with the interests of
the Company’s stockholders.

2. Definitions.

     (a) “Affiliate” means any parent corporation or subsidiary corporation of the Company, whether
now or hereafter existing, as those terms are defined in Sections 424(e) and (f), respectively, of
the Code.

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

     (c) “Capitalization Adjustment” has the meaning ascribed to that term in Section 12(a).

     (d) “Cause” means any (i) willful breach of any agreement entered into with the Company; (ii)
misappropriation of the Company’s property, fraud, embezzlement, breach of fiduciary duty, other
acts of dishonesty against the Company; (iii) conviction of any felony or crime involving moral
turpitude; or (iv) other act as determined by the Board in its discretion.

     (e) “Code” means the Internal Revenue Code of 1986, as amended.

     (f) “Committee” means a committee of one or more members of the Board appointed by the Board
in accordance with Section 3(c).

     (g) “Common Stock” means the common stock of the Company.

     (h) “Company” means Digital River, Inc., a Delaware corporation.

 

 

     (i) “Consultant” means any person, including an advisor, (i) engaged by the Company or an
Affiliate to render consulting or advisory services and who is compensated for such services or
(ii) serving as a member of the Board of Directors of an Affiliate and who is compensated for such
services. However, the term “Consultant” shall not include Directors who are not compensated by
the Company for their services as Directors, and the payment of a director’s fee by the Company for
services as a Director shall not cause a Director to be considered a “Consultant” for purposes of
the Plan.

     (j) “Continuous Service” means that the Participant’s service with the Company or an
Affiliate, whether as an Employee, Director or Consultant, is not interrupted or terminated. A
change in the capacity in which the Participant renders service to the Company or an Affiliate as
an Employee, Consultant or Director or a change in the entity for which the Participant renders
such service, provided that there is no interruption or termination of the Participant’s service
with the Company or an Affiliate, shall not terminate a Participant’s Continuous Service. For
example, a change in status from an employee of the Company to a Consultant to an Affiliate or to a
Director shall not constitute an interruption of Continuous Service. The Board or the chief
executive officer of the Company, in that party’s sole discretion, may determine whether Continuous
Service shall be considered interrupted in the case of any leave of absence approved by that party,
including sick leave, military leave or any other personal leave. Notwithstanding the foregoing, a
leave of absence shall be treated as Continuous Service for purposes of vesting in a Stock Award
only to such extent as may be provided in the Company’s leave of absence policy or in the written
terms of the Participant’s leave of absence agreement.

     (k) “Corporate Transaction” means the occurrence, in a single transaction or in a series of
related transactions, of any one or more of the following events:

	 	(i)	 	a sale or other disposition of all or substantially all, as determined by the Board in its
discretion, of the consolidated assets of the Company and its Subsidiaries;
	 
	 	(ii)	 	a merger, consolidation or similar transaction following which the Company is not the
surviving corporation; or
	 
	 	(iii)	 	a merger, consolidation or similar transaction following which the Company is the
surviving corporation but the shares of Common Stock outstanding immediately preceding the merger,
consolidation or similar transaction are converted or exchanged by virtue of the merger,
consolidation or similar transaction into other property, whether in the form of securities, cash
or otherwise.

     (l) “Covered Employee” means the chief executive officer and the four (4) other highest
compensated officers of the Company for whom total compensation is required to be reported to
stockholders under the Exchange Act, as determined for purposes of Section 162(m) of the Code.

     (m) “Director” means a member of the Board.

     (n) “Disability” means the permanent and total disability of a person within the meaning of
Section 22(e)(3) of the Code.

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     (o) “Employee” means any person employed by the Company or an Affiliate. Service as a
Director or payment of a director’s fee by the Company for such service or for service as a member
of the Board of Directors of an Affiliate shall not be sufficient to constitute “employment” by the
Company or an Affiliate.

     (p) “Entity” means a corporation, partnership or other entity.

     (q) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     (r) “Exchange Act Person” means any natural person, Entity or “group” (within the meaning of
Section 13(d) or 14(d) of the Exchange Act), except that “Exchange Act Person” shall not include
(A) the Company or any Subsidiary, (B) any employee benefit plan of the Company or any Subsidiary
or any trustee or other fiduciary holding securities under an employee benefit plan of the Company
or any Subsidiary, (C) an underwriter temporarily holding securities pursuant to an offering of
such securities, or (D) an Entity Owned, directly or indirectly, by the stockholders of the Company
in substantially the same proportions as their Ownership of stock of the Company.

     (s) “Fair Market Value” means, as of any date, the value of the Common Stock determined as
follows:

     (i) If the Common Stock is listed on any established stock exchange, the Fair Market Value of
a share of Common Stock, unless otherwise determined by the Board, shall be the closing sales price
for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or market
(or the exchange or market with the greatest volume of trading in the Common Stock) on the day of
determination (or, if such day of determination does not fall on a market trading day, then the
last market trading day prior to the date of determination), as reported in The Wall Street Journal
or such other source as the Board deems reliable.

     (ii) In the absence of such markets for the Common Stock, the Fair Market Value shall be
determined in good faith by the Board.

     (t) “Full Value Award” means a Stock Award that does not provide for full payment in cash or
property by the Participant.

     (u) “Incentive Stock Option” means an Option intended to qualify as an incentive stock option
within the meaning of Section 422 of the Code and the regulations promulgated thereunder.

     (v) “Non-Employee Director” means a Director who either (i) is not currently an employee or
officer of the Company or its parent or a subsidiary, does not receive compensation, either
directly or indirectly, from the Company or its parent or a subsidiary, for services rendered as a
consultant or in any capacity other than as a Director (except for an amount as to which disclosure
would not be required under Item 404(a) of Regulation S-K promulgated pursuant to the Securities
Act (“Regulation S-K”)), does not possess an interest in any other transaction for which disclosure
would be required under Item 404(a) of Regulation S-K, and is not engaged in a business
relationship for which disclosure would be required pursuant to Item 404(b) of

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Regulation S-K; or (ii) is otherwise considered a “non-employee director” for purposes of Rule
16b-3.

     (w) “Nonstatutory Stock Option” means an Option not intended to qualify as an Incentive Stock
Option.

     (x) “Option” means an Incentive Stock Option or a Nonstatutory Stock Option granted pursuant
to the Plan.

     (y) “Option Agreement” means a written agreement between the Company and an Optionholder
evidencing the terms and conditions of an individual Option grant. Each Option Agreement shall be
subject to the terms and conditions of the Plan.

     (z) “Optionholder” means a person to whom an Option is granted pursuant to the Plan or, if
applicable, such other person who holds an outstanding Option.

     (aa) “Outside Director” means a Director who either (i) is not a current employee of the
Company or an “affiliated corporation” (within the meaning of Treasury Regulations promulgated
under Section 162(m) of the Code), is not a former employee of the Company or an “affiliated
corporation” who receives compensation for prior services (other than benefits under a
tax-qualified retirement plan) during the taxable year, has not been an officer of the Company or
an “affiliated corporation”, and does not receive remuneration from the Company or an “affiliated
corporation,” either directly or indirectly, in any capacity other than as a Director or (ii) is
otherwise considered an “outside director” for purposes of Section 162(m) of the Code.

     (bb) “Own,” “Owned,” “Ownership.” A person or Entity shall be deemed to “Own,” to have
“Owned,” or to have acquired “Ownership” of securities if such person or Entity, directly or
indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or
shares voting power, which includes the power to vote or to direct the voting, with respect to such
securities.

     (cc) “Participant” means a person to whom a Stock Award is granted pursuant to the Plan or, if
applicable, such other person who holds an outstanding Stock Award.

     (dd) “Performance Share” means a Stock Award denominated in shares of Common Stock equivalents
granted pursuant to Section 7(c) that may be earned in whole or in part based upon attainment of
performance objectives established by the Board pursuant to Section 8.

     (ee) “Performance Share Agreement” means a written agreement between the Company and a holder
of Performance Shares evidencing the terms and conditions of an individual Performance Share award.
Each Performance Share Agreement shall be subject to the terms and conditions of the Plan.

     (ff) “Plan” means this Digital River, Inc. 2007 Equity Incentive Plan.

     (gg) “Restricted Stock Award” means shares of Common Stock granted pursuant to the terms and
conditions of Section 7(a).

-4-

 

     (hh) “Restricted Stock Award Agreement” means a written agreement between the Company and a
holder of Restricted Stock evidencing the terms and conditions of an individual Restricted Stock
Award. Each Restricted Stock Award Agreement shall be subject to the terms and conditions of the
Plan.

     (ii) “Restricted Stock Unit Award” means a Stock Award denominated in shares of Common Stock
equivalents granted pursuant to the terms and conditions of Section 7(b) in which the Participant
has the right to receive a specified number of shares of Common Stock over a specified period of
time.

     (jj) “Restricted Stock Unit Award Agreement” means a written agreement between the Company and
a holder of a Restricted Stock Unit Award evidencing the terms and conditions of an individual
Restricted Stock Unit Award. Each Restricted Stock Unit Award Agreement shall be subject to the
terms and conditions of the Plan.

     (kk) “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule
16b-3, as in effect from time to time.

     (ll) “Securities Act” means the Securities Act of 1933, as amended.

     (mm) “Stock Award” means any right granted under the Plan, including an Option, a Restricted
Stock Award, a Restricted Stock Unit Award, and Performance Shares.

     (nn) “Stock Award Agreement” means a written agreement between the Company and a holder of a
Stock Award evidencing the terms and conditions of an individual Stock Award. Each Stock Award
Agreement shall be subject to the terms and conditions of the Plan.

     (oo) “Subsidiary” means, with respect to the Company, (i) any corporation of which more than
fifty percent (50%) of the outstanding capital stock having ordinary voting power to elect a
majority of the board of directors of such corporation (irrespective of whether, at the time, stock
of any other class or classes of such corporation shall have or might have voting power by reason
of the happening of any contingency) is at the time, directly or indirectly, Owned by the Company,
and (ii) any partnership in which the Company has a direct or indirect interest (whether in the
form of voting or participation in profits or capital contribution) of more than fifty percent
(50%).

     (pp) “Ten Percent Stockholder” means a person who Owns (or is deemed to Own pursuant to
Section 424(d) of the Code) stock possessing more than ten percent (10%) of the total combined
voting power of all classes of stock of the Company or of any of its Affiliates.

3. Administration.

     (a) Administration by Board. The Board shall administer the Plan unless and until the Board
delegates administration to a Committee, as provided in Section 3(c).

     (b) Powers of Board. The Board shall have the power, subject to, and within the limitations
of, the express provisions of the Plan:

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     (i) To determine from time to time which of the persons eligible under the Plan shall be
granted Stock Awards; when and how each Stock Award shall be granted; what type or combination of
types of Stock Award shall be granted; the provisions of each Stock Award granted (which need not
be identical), including the time or times when a person shall be permitted to receive Common Stock
pursuant to a Stock Award; and the number of shares of Common Stock with respect to which a Stock
Award shall be granted to each such person.

     (ii) To construe and interpret the Plan and Stock Awards granted under it, and to establish,
amend and revoke rules and regulations for its administration. The Board, in the exercise of this
power, may correct any defect, omission or inconsistency in the Plan or in any Stock Award
Agreement, in a manner and to the extent it shall deem necessary or expedient to make the Plan
fully effective.

     (iii) To amend the Plan or a Stock Award as provided in Section 13.

     (iv) To terminate or suspend the Plan as provided in Section 14.

     (v) Generally, to exercise such powers and to perform such acts as the Board deems necessary
or expedient to promote the best interests of the Company and that are not in conflict with the
provisions of the Plan.

     (c) Delegation to Committee.

     (i) General. The Board may delegate administration of the Plan to a Committee or Committees
of one (1) or more members of the Board who are not Employees, and the term “Committee” shall apply
to any person or persons to whom such authority has been delegated. If administration is delegated
to a Committee, the Committee shall have, in connection with the administration of the Plan, the
powers theretofore possessed by the Board, including the power to delegate to a subcommittee,
members of which are not Employees, any of the administrative powers the Committee is authorized to
exercise (and references in this Plan to the Board shall thereafter be to the Committee or
subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the
Plan, as may be adopted from time to time by the Board. The Board may abolish the Committee at any
time and revest in the Board the administration of the Plan.

     (ii) Section 162(m) and Rule 16b-3 Compliance. In the discretion of the Board, the Committee
may consist solely of two or more Outside Directors, in accordance with Section 162(m) of the Code,
and/or solely of two or more Non-Employee Directors, in accordance with Rule 16b-3. In addition,
the Board or the Committee may delegate to a committee of one or more members of the Board, who are
not Employees, the authority to grant Stock Awards to eligible persons who are either (a) not then
Covered Employees and are not expected to be Covered Employees at the time of recognition of income
resulting from such Stock Award, (b) not persons with respect to whom the Company wishes to comply
with Section 162(m) of the Code, or (c) not then subject to Section 16 of the Exchange Act.

     (d) Effect of Board’s Decision. All determinations, interpretations and constructions made by
the Board in good faith shall not be subject to review by any person and shall be final, binding
and conclusive on all persons.

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4. Shares Subject to the Plan.

     (a) Share Reserve. Subject to the provisions of Section 12(a) relating to Capitalization
Adjustments, the Common Stock that may be issued pursuant to Stock Awards shall not exceed in the
aggregate Two Million (2,000,000) shares of Common Stock plus any shares of Common Stock subject to
options or other stock awards outstanding under the Company’s 1998 Equity Incentive Plan that
expire or otherwise terminate, in whole or in part, without having been exercised or issued in full
and that otherwise would have again become available for issuance under the Company’s 1998 Equity
Incentive Plan.

     (b) Limitation on Full Value Awards. Notwithstanding the provisions of Section 4(a), for any
two (2) shares of Common Stock issued in connection with a Full Value Award, three (3) fewer shares
of Common Stock will be available for issuance in connection with Options and future Stock Awards
under Section 4(a).

     (c) Reversion of Shares to the Share Reserve. If any Stock Award shall for any reason expire
or otherwise terminate, in whole or in part, without having been exercised in full, the shares of
Common Stock not acquired under such Stock Award shall revert to and again become available for
issuance under the Plan.

     (d) Source of Shares. The shares of Common Stock subject to the Plan may be unissued shares
or reacquired shares, bought on the market or otherwise.

5. Eligibility.

     (a) Eligibility for Specific Stock Awards. Incentive Stock Options may be granted only to
Employees. Stock Awards other than Incentive Stock Options may be granted to Employees, Directors
and Consultants.

     (b) Ten Percent Stockholders. A Ten Percent Stockholder shall not be granted an Incentive
Stock Option unless the exercise price of such Option is at least one hundred ten percent (110%) of
the Fair Market Value of the Common Stock on the date of grant and the Option is not exercisable
after the expiration of five (5) years from the date of grant.

     (c) Section 162(m) Limitation on Annual Grants. Subject to the provisions of Section 12(a)
relating to Capitalization Adjustments, no Employee shall be eligible to be granted Stock Awards
covering more than four hundred thousand (400,000) shares of Common Stock during any calendar year.

     (d) Consultants. A Consultant shall not be eligible for the grant of a Stock Award if, at the
time of grant, a Form S-8 Registration Statement under the Securities Act (“Form S-8”) is not
available to register either the offer or the sale of the Company’s securities to such Consultant
because of the nature of the services that the Consultant is providing to the Company, because the
Consultant is not a natural person, or because of any other rule governing the use of Form S-8.

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6. Option Provisions.

     Each Option shall be in such form and shall contain such terms and conditions as the Board
shall deem appropriate. All Options shall be separately designated Incentive Stock Options or
Nonstatutory Stock Options at the time of grant, and, if certificates are issued, a separate
certificate or certificates shall be issued for shares of Common Stock purchased on exercise of
each type of Option. The provisions of separate Options need not be identical, but each Option
shall include (through incorporation of provisions hereof by reference in the Option Agreement or
otherwise) the substance of each of the following provisions:

     (a) Term. Subject to the provisions of Section 5(b) regarding Ten Percent Stockholders, no
Option shall be exercisable after the expiration of ten (10) years from the date on which it was
granted.

     (b) Exercise Price. Subject to the provisions of Section 5(b) regarding Ten Percent
Stockholders, the exercise price of each Option shall be not less than one hundred percent (100%)
of the Fair Market Value of the Common Stock subject to the Option on the date the Option is
granted. Notwithstanding the foregoing, an Option may be granted with an exercise price lower than
that set forth in the preceding sentence if such Option is granted pursuant to an assumption or
substitution for another option in a manner satisfying the provisions of Section 424(a) of the
Code.

     (c) Consideration. The purchase price of Common Stock acquired pursuant to the exercise of an
Option shall be paid, to the extent permitted by applicable law and as determined by the Board in
its sole discretion, by any combination of the methods of payment set forth below. The Board shall
have the authority to grant Options that do not permit all of the following methods of payment (or
otherwise restrict the ability to use certain methods) and to grant Options that require the
consent of the Company to utilize a particular method of payment. The methods of payment permitted
by this Section 5(c) are:

     (i) by cash, check, bank draft or money order payable to the Company;

     (ii) pursuant to a program developed under Regulation T as promulgated by the Federal Reserve
Board that, prior to the issuance of the stock subject to the Option, results in either the receipt
of cash (or check) by the Company or the receipt of irrevocable instructions to pay the aggregate
exercise price to the Company from the sales proceeds;

     (iii) by delivery to the Company (either by actual delivery or attestation) of shares of
Common Stock;

     (iv) by a “net exercise” arrangement pursuant to which the Company will reduce the number of
shares of Common Stock issuable upon exercise by the largest whole number of shares with a Fair
Market Value that does not exceed the aggregate exercise price; provided, however, the Company
shall accept a cash or other payment from the Participant to the extent of any remaining balance of
the aggregate exercise price not satisfied by such reduction in the number of whole shares to be
issued; provided, further, that shares of Common Stock will no longer be subject to an Option and
will not be exercisable thereafter to the extent that (A) shares issuable upon exercise are reduced
to pay the exercise price pursuant to the “net exercise,”

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(B) shares are delivered to the Participant as a result of such exercise, and (C) shares are withheld
to satisfy tax withholding obligations; or

     (v) in any other form of legal consideration that may be acceptable to the Board in its sole
discretion and permissible under applicable law.

     (d) Transferability of an Incentive Stock Option. An Incentive Stock Option shall not be
transferable except by will or by the laws of descent and distribution and shall be exercisable
during the lifetime of the Optionholder only by the Optionholder. Notwithstanding the foregoing,
the Optionholder may, by delivering written notice to the Company, in a form satisfactory to the
Company, designate a third party who, in the event of the death of the Optionholder, shall
thereafter be entitled to exercise the Option.

     (e) Transferability of a Nonstatutory Stock Option. A Nonstatutory Stock Option shall be
transferable to the extent provided in the Option Agreement. If the Nonstatutory Stock Option does
not provide for transferability, then the Nonstatutory Stock Option shall not be transferable
except by will or by the laws of descent and distribution, or pursuant to a qualified domestic
relations order as defined in the Code or in Title I of the Employee Retirement Income Security Act
of 1974, as amended, and shall be exercisable during the lifetime of the Optionholder only by the
Optionholder. Notwithstanding the foregoing, the Optionholder may, by delivering written notice to
the Company, in a form satisfactory to the Company, designate a third party who, in the event of
the death of the Optionholder, shall thereafter be entitled to exercise the Option.

     (f) Vesting Generally. The total number of shares of Common Stock subject to an Option may,
but need not, vest and therefore become exercisable in periodic installments that may, but need
not, be equal. The Option may be subject to such other terms and conditions on the time or times
when it may be exercised (which may be based on performance or other criteria) as the Board may
deem appropriate. The vesting provisions of individual Options may vary. The provisions of this
Section 6(f) are subject to any Option provisions governing the minimum number of shares of Common
Stock as to which an Option may be exercised.

     (g) Termination of Continuous Service. In the event that an Optionholder’s Continuous Service
terminates (other than upon the Optionholder’s death or Disability or for Cause), the Optionholder
may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such
Option as of the date of termination) but only within such period of time ending on the earlier of
(i) the date ninety (90) days following the termination of the Optionholder’s Continuous Service
(or such longer or shorter period specified in the Option Agreement) or (ii) the expiration of the
term of the Option as set forth in the Option Agreement. If, after termination, the Optionholder
does not exercise his or her Option within the time specified in the Option Agreement, the Option
shall terminate. Notwithstanding the foregoing, in the event that Optionholder is terminated for
Cause, the Option shall terminate as of the date of the Optionholder’s termination of Continued
Service.

     (h) Extension of Termination Date. An Optionholder’s Option Agreement may also provide that
if the exercise of the Option following the termination of the Optionholder’s Continuous Service
(other than upon the Optionholder’s death or Disability) would be prohibited at any time solely
because the issuance of shares of Common Stock would violate the

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registration requirements under the Securities Act, then the Option shall terminate on the
earlier of (i) the expiration of the term of the Option set forth in Section 6(a) or (ii) the
expiration of a period of ninety (90) days after the termination of the Optionholder’s Continuous
Service during which the exercise of the Option would not be in violation of such registration
requirements.

     (i) Disability of Optionholder. In the event that an Optionholder’s Continuous Service
terminates as a result of the Optionholder’s Disability, the Optionholder may exercise his or her
Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of
termination), but only within the period of time specified in the Option Agreement; provided,
however, that such vested Options shall not be exercisable for a period greater than one (1) year
following the Optionholder’s termination of Continuous Service due to Disability. If no such
period is specified in the Option Agreement, then any vested outstanding Options shall be
exercisable only within thirty (30) days following the Optionholder’s termination of Continuous
Service due to Disability. If, after termination, the Optionholder does not exercise his or her
Option within the time specified herein, the Option shall terminate.

     (j) Death of Optionholder. In the event that (i) an Optionholder’s Continuous Service
terminates as a result of the Optionholder’s death or (ii) the Optionholder dies within the period
(if any) specified in the Option Agreement after the termination of the Optionholder’s Continuous
Service for a reason other than death, then the Option may be exercised (to the extent the
Optionholder was entitled to exercise such Option as of the date of death) by the Optionholder’s
estate, by a person who acquired the right to exercise the Option by bequest or inheritance or by a
person designated to exercise the option upon the Optionholder’s death pursuant to Section 6(d) or
6(e), but only within the period of time specified in the Option Agreement; provided, however, that
such vested Options shall not be exercisable for a period greater than one (1) year following the
Optionholder’s death. If no such period is specified in the Option Agreement, then any vested
outstanding Options shall be exercisable only within six (6) months following the Optionholder’s
death. If, after death, the Option is not exercised within the time specified herein, the Option
shall terminate.

     (k) Termination for Cause. In the event that the Optionholder’s Continuous Service is
terminated for Cause, the Optionholder may exercise his or her Option (to the extent that the
Optionholder was entitled to exercise such Option as of the date of termination) but only within
such period of time ending on the earlier of (i) the date seven (7) days following the termination
of the Optionholder’s Continuous Service (or such longer or shorter period specified in the Option
Agreement) or (ii) the expiration of the term of the Option as set forth in the Option Agreement.

7. Provisions of Stock Awards other than Options.

     (a) Restricted Stock Awards. Each Restricted Stock Award Agreement shall be in such form and
shall contain such terms and conditions as the Board shall deem appropriate. The terms and
conditions of the Restricted Stock Award Agreement may change from time to time, and the terms and
conditions of separate Restricted Stock Award Agreements need not be identical, but each Restricted
Stock Award Agreement shall include (through incorporation of provisions hereof by reference in the
agreement or otherwise) the substance of each of the following provisions:

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     (i) Consideration. At the time of grant of a Restricted Stock Award, the Board will determine
the consideration, if any, to be paid by the Participant upon delivery of each share of Common
Stock subject to the Restricted Stock Award. To the extent required by applicable law, the
consideration to be paid by the Participant for each share of Common Stock subject to a Restricted
Stock Award will not be less than the par value of a share of Common Stock. Such consideration may
be paid in any form permitted under applicable law.

     (ii) Vesting. Shares of Common Stock acquired pursuant to the Restricted Stock Award shall be
subject to a share repurchase option in favor of the Company in accordance with a vesting schedule
to be determined by the Board. The Board may condition the vesting of the shares acquired pursuant
to the Restricted Stock Award upon the attainment of specified performance objectives established
by the Board pursuant to Section 8 or such other factors as the Board may determine in its sole
discretion, including time-based vesting; provided, however, that if the vesting schedule is a
time-based vesting schedule, such shares shall vest not faster than one-third per year over three
years and if the vesting schedule is a performance-based vesting schedule, such shares shall vest
not earlier than the first anniversary of the date of grant.

     (iii) Termination of Participant’s Continuous Service. In the event that a Participant’s
Continuous Service terminates, the Company may repurchase or otherwise reacquire any or all of the
shares of Common Stock held by the Participant that have not vested as of the date of termination
under the terms of the Restricted Stock Award Agreement. The Company will not exercise its
repurchase option until at least six (6) months (or such longer or shorter period of time required
to avoid a charge to earnings for financial accounting purposes) have elapsed following the
purchase of the restricted stock unless otherwise provided in the Restricted Stock Award Agreement.

     (iv) Transferability. Rights to acquire shares of Common Stock pursuant to the Restricted
Stock Award shall be transferable by the Participant only upon such terms and conditions as are set
forth in the Restricted Stock Award Agreement, as the Board shall determine in its discretion, so
long as Common Stock awarded pursuant to the Restricted Stock Award remains subject to the terms of
the Restricted Stock Award Agreement.

     (b) Restricted Stock Unit Awards. Each Restricted Stock Unit Award Agreement shall be in such
form and shall contain such terms and conditions as the Board shall deem appropriate. The terms
and conditions of Restricted Stock Unit Award Agreements may change from time to time, and the
terms and conditions of separate Restricted Stock Unit Award Agreements need not be identical, but
each Restricted Stock Unit Award Agreement shall include (through incorporation of the provisions
hereof by reference in the agreement or otherwise) the substance of each of the following
provisions:

     (i) Consideration. At the time of grant of a Restricted Stock Unit Award, the Board will
determine the consideration, if any, to be paid by the Participant upon delivery of each share of
Common Stock subject to the Restricted Stock Unit Award. To the extent required by applicable law,
the consideration to be paid by the Participant for each share of Common Stock subject to a
Restricted Stock Unit Award will not be less than the par value of a share of Common Stock. Such
consideration may be paid in any form permitted under applicable law.

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     (ii) Vesting. At the time of grant of a Restricted Stock Unit Award, the Board shall impose
such restrictions or conditions to the vesting of the Restricted Stock Unit Award as it, in its
absolute discretion, deems appropriate. The Board may condition the vesting of the Restricted
Stock Unit Award upon the attainment of specified performance objectives established by the Board
pursuant to Section 8 or such other factors as the Board may determine in its sole discretion,
including time-based vesting; provided, however, that if the vesting schedule is a time-based
vesting schedule, such Stock Award shall vest not faster than one-third per year over three years
and if the vesting schedule is a performance-based vesting schedule, such Stock Award shall vest
not earlier than the first anniversary of the date of grant.

     (iii) Payment. A Restricted Stock Unit Award will be denominated in shares of Common Stock
equivalents. A Restricted Stock Unit Award will be settled by the delivery of shares of Common
Stock.

     (iv) Dividend Equivalents. Dividend equivalents may be credited in respect of shares of
Common Stock equivalents covered by a Restricted Stock Unit Award, as determined by the Board and
contained in the Restricted Stock Unit Award Agreement. At the discretion of the Board, such
dividend equivalents may be converted into additional shares of Common Stock equivalents covered by
the Restricted Stock Unit Award by dividing (1) the aggregate amount or value of the dividends paid
with respect to that number of shares of Common Stock equivalents covered by the Restricted Stock
Unit Award then credited by (2) the Fair Market Value per share of Common Stock on the payment date
for such dividend, or in such other manner as determined by the Board. Any additional share
equivalents covered by the Restricted Stock Unit Award credited by reason of such dividend
equivalents will be subject to all the terms and conditions of the underlying Restricted Stock Unit
Award Agreement to which they relate.

     (v) Termination of Participant’s Continuous Service. Except as otherwise provided in the
applicable Restricted Stock Unit Award Agreement, such portion of the Restricted Stock Unit Award
that has not vested will be forfeited upon the Participant’s termination of Continuous Service for
any reason.

     (vi) Transferability. Restricted Stock Units shall be transferable by the Participant only
upon such terms and conditions as are set forth in the Restricted Stock Unit Agreement, as the
Board shall determine in its discretion.

     (c) Performance Shares. Each Performance Share Agreement shall be in such form and shall
contain such terms and conditions as the Board shall deem appropriate. The terms and conditions of
Performance Share Agreements may change from time to time, and the terms and conditions of separate
Performance Share Agreements need not be identical; provided, however, that each Performance Share
Agreement shall include (through incorporation of the provisions hereof by reference in the
agreement or otherwise) the substance of each of the following provisions:

     (i) Consideration. At the time of grant of Performance Shares, the Board will determine the
consideration, if any, to be paid by the Participant upon delivery of each share of Common Stock
subject to the Performance Shares. To the extent required by applicable law, the consideration to
be paid by the Participant for each share of Common Stock subject to a

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Performance Shares will not be less than the par value of a share of Common Stock. Such
consideration may be paid in any form permitted under applicable law.

     (ii) Vesting. At the time of grant of Performance Shares, the Board shall impose such
restrictions or conditions to the vesting of the Performance Shares as it, in its discretion, deems
appropriate. The Board may condition the grant of Performance Shares upon the attainment of
specified performance objectives established by the Board pursuant to Section 8 or such other
factors as the Board may determine in its sole discretion; provided, however, that such Performance
Shares shall vest not earlier than the first anniversary of the date of grant.

     (iii) Payment. Performance Shares will be denominated in shares of Common Stock Equivalents.
Performance Shares will be settled by the delivery of shares of Common Stock.

     (iv) Dividend Equivalents. Dividend equivalents may be credited in respect of shares of
Common Stock equivalents covered by Performance Shares, as determined by the Board and contained in
the Performance Share Agreement. At the discretion of the Board, such dividend equivalents may be
converted into additional shares of Common Stock equivalents covered by the Performance Shares by
dividing (1) the aggregate amount or value of the dividends paid with respect to that number of
shares of Common Stock equivalents covered by the Performance Shares then credited by (2) the Fair
Market Value per share of Common Stock on the payment date for such dividend, or in such other
manner as determined by the Board. Any additional share equivalents covered by the Performance
Shares credited by reason of such dividend equivalents will be subject to all the terms and
conditions of the underlying Performance Share Agreement to which they relate.

     (v) Termination of Participant’s Continuous Service. Except as otherwise provided in the
applicable Performance Share Agreement, such portion of the Performance Shares that have not vested
will be forfeited upon the Participant’s termination of Continuous Service for any reason.

     (vi) Transferability. Performance Shares shall be transferable by the Participant only upon
such terms and conditions as are set forth in the Performance Share Agreement, as the Board shall
determine in its discretion.

     (d) Deferral of Award Payment. The Board may establish one or more programs under the Plan to
permit selected Participants to elect to defer receipt of consideration upon exercise of a Stock
Award, the satisfaction of performance objectives, or other events which, absent such an election,
would entitle such Participants to payment or receipt of Common Stock or other consideration under
a Stock Award. The Board may establish the election procedures of such deferrals, the mechanisms
for payment of Common Stock or other consideration subject to deferral (including accrual of
interest or other earnings, if any, on amounts with respect thereto) and such other terms,
conditions, rules and procedures that the Board deems advisable and in compliance with Section 409A
of the Code.

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8. Performance Objectives.

       The Board shall determine the terms and conditions of Stock Awards at the date of
grant or thereafter; provided that performance objectives, if any, related to Stock Awards granted
to Covered Employees shall be established by the Board not later than the latest date permissible
under Section 162(m) of the Code. To the extent that such Stock Awards are paid to Covered
Employees the performance objectives to be used, if any, shall be expressed in terms of one or more
of the following: total shareholder return; earnings per share; stock price; return on equity; net
earnings; related return ratios; cash flow; net earnings growth; earnings before interest, taxes,
depreciation and amortization (EBITDA); return on assets; revenues; expenses; funds from operations
(FFO); and FFO per share. Performance objectives, if any, established by the Board may be (but
need not be) different from year-to-year, and different performance objectives may be applicable to
different Participants.

9. Covenants of the Company.

     (a) Availability of Shares. During the terms of the Stock Awards, the Company shall keep
available at all times the number of shares of Common Stock required to satisfy such Stock Awards.

     (b) Securities Law Compliance. The Company shall seek to obtain from each regulatory
commission or agency having jurisdiction over the Plan such authority as may be required to grant
Stock Awards and to issue and sell shares of Common Stock upon exercise of the Stock Awards;
provided, however, that this undertaking shall not require the Company to register under the
Securities Act the Plan, any Stock Award or any Common Stock issued or issuable pursuant to any
such Stock Award. If, after reasonable efforts, the Company is unable to obtain from any such
regulatory commission or agency the authority which counsel for the Company deems necessary for the
lawful issuance and sale of Common Stock under the Plan, the Company shall be relieved from any
liability for failure to issue and sell Common Stock upon exercise of such Stock Awards unless and
until such authority is obtained.

10. Use of Proceeds from Stock.

     Proceeds from the sale of Common Stock pursuant to Stock Awards shall constitute general funds
of the Company.

11. Miscellaneous.

     (a) Acceleration of Exercisability and Vesting. The Board shall have the power to accelerate
the time at which a Stock Award may first be exercised or the time during which a Stock Award or
any part thereof will vest in accordance with the Plan, notwithstanding the provisions in the Stock
Award stating the time at which it may first be exercised or the time during which it will vest.

     (b) Stockholder Rights. No Participant shall be deemed to be the holder of, or to have any of
the rights of a holder with respect to, any shares of Common Stock subject to such Stock Award
unless and until such Participant has satisfied all requirements for exercise of the Stock Award
pursuant to its terms.

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     (c) No Employment or other Service Rights. Nothing in the Plan or any instrument executed or
Stock Award granted pursuant thereto shall confer upon any Participant any right to continue to
serve the Company or an Affiliate in the capacity in effect at the time the Stock Award was granted
or shall affect the right of the Company or an Affiliate to terminate (i) the employment of an
Employee with or without notice and with or without cause, (ii) the service of a Consultant
pursuant to the terms of such Consultant’s agreement with the Company or an Affiliate or (iii) the
service of a Director pursuant to the Bylaws of the Company or an Affiliate, and any applicable
provisions of the corporate law of the state in which the Company or the Affiliate is incorporated,
as the case may be.

     (d) Incentive Stock Option $100,000 Limitation. To the extent that the aggregate Fair Market
Value (determined at the time of grant) of Common Stock with respect to which Incentive Stock
Options are exercisable for the first time by any Optionholder during any calendar year (under all
plans of the Company and its Affiliates) exceeds one hundred thousand dollars ($100,000), the
Options or portions thereof that exceed such limit (according to the order in which they were
granted) shall be treated as Nonstatutory Stock Options, notwithstanding any contrary provision of
a Stock Award Agreement.

     (e) Investment Assurances. The Company may require a Participant, as a condition of
exercising or acquiring Common Stock under any Stock Award, (i) to give written assurances
satisfactory to the Company as to the Participant’s knowledge and experience in financial and
business matters and/or to employ a purchaser representative reasonably satisfactory to the Company
who is knowledgeable and experienced in financial and business matters and that he or she is
capable of evaluating, alone or together with the purchaser representative, the merits and risks of
exercising the Stock Award and (ii) to give written assurances satisfactory to the Company stating
that the Participant is acquiring Common Stock subject to the Stock Award for the Participant’s own
account and not with any present intention of selling or otherwise distributing the Common Stock.
The foregoing requirements, and any assurances given pursuant to such requirements, shall be
inoperative if (1) the issuance of the shares of Common Stock upon the exercise or acquisition of
Common Stock under the Stock Award has been registered under a then currently effective
registration statement under the Securities Act or (2) as to any particular requirement, a
determination is made by counsel for the Company that such requirement need not be met in the
circumstances under the then applicable securities laws. The Company may, upon advice of counsel
to the Company, place legends on stock certificates issued under the Plan as such counsel deems
necessary or appropriate in order to comply with applicable securities laws, including, but not
limited to, legends restricting the transfer of the Common Stock.

     (f) Withholding Obligations. To the extent provided by the terms of a Stock Award Agreement,
the Participant may satisfy any federal, state or local tax withholding obligation relating to the
exercise or acquisition of Common Stock under a Stock Award by any of the following means (in
addition to the Company’s right to withhold from any compensation paid to the Participant by the
Company) or by a combination of such means: (i) tendering a cash payment; (ii) authorizing the
Company to withhold shares of Common Stock from the shares of Common Stock otherwise issuable to
the Participant as a result of the exercise or acquisition of Common Stock under the Stock Award;
provided, however, that no shares of Common Stock are withheld with a value exceeding the minimum
amount of tax required to be withheld by law (or

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such lesser amount as may be necessary to avoid variable award accounting); or (iii)
delivering to the Company owned and unencumbered shares of Common Stock.

     (g) Foreign Employees. Without amending the Plan, the Board may grant Stock Awards to
eligible Employees, Directors and Consultants who are foreign nationals on such terms and
conditions different from those specified in this Plan as may in the judgment of the Board be
necessary or desirable to foster and promote achievement of the purposes of the Plan, and, in
furtherance of such purposes the Board may make such modification, amendments, procedures, subplans
and the like as may be necessary or advisable to comply with provisions of laws in other countries
in which the Company operates or has Employees, Directors and Consultants.

     (h) Indemnification. In addition to such other rights of indemnification as they may have and
subject to limitations of applicable law, the members of the Board shall be indemnified by the
Company against all costs and expenses reasonably incurred by them in connection with any action,
suit or proceeding to which they or any of them may be a party by reason of any action taken or
failure to act under or in connection with the Plan or any rights granted thereunder and against
all amounts paid to them in settlement thereof or paid by them in satisfaction of a judgment of any
such action, suit or proceeding. The Board member or members shall notify the Company in writing,
giving the Company an opportunity at its own cost to defend the same before such Board member or
members undertake to defend the same on their own behalf.

12. Adjustments upon Changes in Stock.

     (a) Capitalization Adjustments. If any change is made in, or other event occurs with respect
to, the Common Stock subject to the Plan or subject to any Stock Award without the receipt of
consideration by the Company (through merger, consolidation, reorganization, recapitalization,
reincorporation, stock dividend, dividend in property other than cash, stock split, liquidating
dividend, combination of shares, exchange of shares, change in corporate structure or other
transaction not involving the receipt of consideration by the Company (each a “Capitalization
Adjustment”)), the Plan will be appropriately adjusted in the class(es) and maximum number of
securities subject to the Plan pursuant to Sections 4(a) and 4(c) and the maximum number of
securities subject to award to any person pursuant to Section 5(c), and the outstanding Stock
Awards will be appropriately adjusted in the class(es) and number of securities and price per share
of Common Stock subject to such outstanding Stock Awards. The Board shall make such adjustments,
and its determination shall be final, binding and conclusive. (The conversion of any convertible
securities of the Company shall not be treated as a transaction “without receipt of consideration”
by the Company.)

     (b) Dissolution or Liquidation. In the event of a dissolution or liquidation of the Company,
then all outstanding Stock Awards shall terminate immediately prior to the completion of such
dissolution or liquidation, and shares of Common Stock subject to the Company’s repurchase option
may be repurchased by the Company notwithstanding the fact that the holder of such stock is still
in Continuous Service.

     (c) Corporate Transaction. In the event of a Corporate Transaction, any surviving corporation
or acquiring corporation may assume or continue any or all Stock Awards

-16-

 

outstanding under the Plan or may substitute similar stock awards for Stock Awards outstanding
under the Plan (it being understood that similar stock awards include, but are not limited to,
awards to acquire the same consideration paid to the stockholders or the Company, as the case may
be, pursuant to the Corporate Transaction), and any reacquisition or repurchase rights held by the
Company in respect of Common Stock issued pursuant to Stock Awards may be assigned by the Company
to the successor of the Company (or the successor’s parent company), if any, in connection with
such Corporate Transaction. In the event that any surviving corporation or acquiring corporation
does not assume or continue any or all such outstanding Stock Awards or substitute similar stock
awards for such outstanding Stock Awards, then with respect to Stock Awards that have been not
assumed, continued or substituted and that are held by Participants whose Continuous Service has
not terminated prior to the effective time of the Corporate Transaction, the vesting of such Stock
Awards (and, if applicable, the time at which such Stock Awards may be exercised) shall (contingent
upon the effectiveness of the Corporate Transaction) be accelerated in full to a date prior to the
effective time of such Corporate Transaction as the Board shall determine (or, if the Board shall
not determine such a date, to the date that is five (5) days prior to the effective time of the
Corporate Transaction), the Stock Awards shall terminate if not exercised (if applicable) at or
prior to such effective time, and any reacquisition or repurchase rights held by the Company with
respect to such Stock Awards held by Participants whose Continuous Service has not terminated shall
(contingent upon the effectiveness of the Corporate Transaction) lapse. With respect to any other
Stock Awards outstanding under the Plan that have not been assumed, continued or substituted, the
vesting of such Stock Awards (and, if applicable, the time at which such Stock Award may be
exercised) shall not be accelerated, unless otherwise provided in a written agreement between the
Company or any Affiliate and the holder of such Stock Award, and such Stock Awards shall terminate
if not exercised (if applicable) prior to the effective time of the Corporate Transaction.

     (d) Securities Acquisition. In the event of an acquisition by any Exchange Act Person of the
beneficial Ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act, or
comparable successor rule) of securities of the Company representing at least fifty percent (50%)
of the combined voting power entitled to vote in the election of directors (other than an
acquisition pursuant to Section 12(c) above), then with respect to Stock Awards held by
Participants whose Continuous Service has not terminated, the vesting (and exercisability, if
applicable) of such Stock Awards shall be accelerated in full.

13. Amendment of the Plan and Stock Awards.

     (a) Amendment of Plan. The Board at any time, and from time to time, may amend the Plan.
However, except as provided in Section 12(a) relating to Capitalization Adjustments, no amendment
shall be effective unless approved by the stockholders of the Company to the extent stockholder
approval is necessary to satisfy the requirements of Section 422 of the Code or the listing
requirements of the national exchange.

     (b) Stockholder Approval. The Board, in its sole discretion, may submit any other amendment
to the Plan for stockholder approval, including, but not limited to, amendments to the Plan
intended to satisfy the requirements of Section 162(m) of the Code and the regulations thereunder
regarding the exclusion of performance-based compensation from the limit on corporate deductibility
of compensation paid to Covered Employees.

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     (c) Contemplated Amendments. It is expressly contemplated that the Board may amend the Plan
in any respect the Board deems necessary or advisable to provide eligible Employees with the
maximum benefits provided or to be provided under the provisions of the Code and the regulations
promulgated thereunder relating to Incentive Stock Options and/or to bring the Plan and/or
Incentive Stock Options granted under it into compliance therewith.

     (d) No Impairment of Rights. Rights under any Stock Award granted before amendment of the
Plan shall not be impaired by any amendment of the Plan unless (i) the Company requests the consent
of the Participant and (ii) the Participant consents in writing.

     (e) Amendment of Stock Awards. The Board at any time, and from time to time, may amend the
terms of any one or more Stock Awards; provided, however, that the rights under any Stock Award
shall not be impaired by any such amendment unless (i) the Company requests the consent of the
Participant and (ii) the Participant consents in writing.

14. Termination or Suspension of the Plan.

     (a) Plan Term. The Board may suspend or terminate the Plan at any time. Unless sooner
terminated, the Plan shall terminate on April 4, 2017. No Stock Awards may be granted under the
Plan while the Plan is suspended or after it is terminated.

     (b) No Impairment of Rights. Suspension or termination of the Plan shall not impair rights
and obligations under any Stock Award granted while the Plan is in effect except with the written
consent of the Participant.

15. No Authority to Reprice.

     Without the consent of the stockholders of the Company, except as provided in Section 12(a),
the Administrator shall have no authority to effect either (i) the repricing of any outstanding
Options under the Plan or (ii) the cancellation of any outstanding Options under the Plan and the
grant in substitution therefor of new Options under the Plan covering the same or different numbers
of shares of Common Stock.

16. Effective Date of Plan.

     The amended and restated Plan shall become effective as determined by the Board, but no Stock
Award shall be exercised (or, in the case of Stock Awards other than Options, shall be granted)
unless and until the Plan has been approved by the stockholders of the Company, which approval
shall be within twelve (12) months before or after the date the Plan is adopted by the Board.

17. Choice of Law.

     The law of the State of Delaware shall govern all questions concerning the construction,
validity and interpretation of this Plan, without regard to such state’s conflict of laws rules.

-18-

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