Document:

exv10w20w1

 

Exhibit 10.20.1

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

AMENDED AND RESTATED SERVICES AND SUPPLY AGREEMENT

     This AMENDED AND RESTATED SERVICES AND SUPPLY AGREEMENT (“Restated Agreement”) is made and
entered into as of January 1, 2006 (“Effective Date”), by and between E.I. du Pont de Nemours and
Company, having a principal business address at 1007 Market Street, Wilmington, Delaware 19898
(“DuPont”) and Solexa, Inc. (formerly LYNX THERAPEUTICS, INC.), having a principal business address
at 25861 Industrial Boulevard, Hayward, California, 94545 (“Solexa”). DuPont and Solexa may be
referred to herein collectively as the “Parties” or individually as a “Party.”

     WHEREAS, Solexa has expertise and intellectual property involving the use of certain molecular
biological methods for cloning and identifying the sequence of nucleic acids, and using such
technologies for discovery and characterization of genes;

     WHEREAS, DuPont and its agricultural Affiliates, including Pioneer Hi-Bred International, Inc.
of Des Moines, Iowa (“Pioneer”), have expertise and interest in discovering, developing,
distributing and marketing agricultural products and processes;

     WHEREAS, DuPont and Solexa have previously entered into a Research Collaboration Agreement
dated October 29, 1998 and subsequently amended from time to time by the Parties (“1998
Collaboration Agreement”) and a Services Agreement dated as of December 31, 2003, which as amended
from time to time by the Parties superseded the 1998 Collaboration Agreement (the “Previous
Agreement”), under which Solexa technology has been applied to gene expression, physical mapping,
and other analysis of certain crop plants for the benefit of DuPont’s agricultural research and
development programs;

     WHEREAS, Solexa is phasing out its MPSS platform and replacing it with a new and alternative
technology platform for identifying and counting sequence tags, such platform known as cluster
sequencing or SBS;

     WHEREAS, Solexa is further developing this technology platform in 2006 with intention of
generally commercializing both Solexa-provided services and instrument/consumables sales to
customers by the end of 2006;

     WHEREAS, the Parties desire that DuPont have early access to services and
instruments/consumables related to this platform during 2006; and

     WHEREAS, the Parties desire to supersede the Previous Agreement and to continue their
interaction with one another under the terms and conditions of this Restated Agreement.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the Parties agree as follows:

	1.	 	Definitions:

	 	a.	 	“Affiliate” shall mean any corporation, firm, limited liability company, partnership,
or other entity that directly or indirectly controls, or is controlled by, or is under
common control with a Party to this Restated Agreement. For the purpose of this
definition, control means ownership, directly or through one or more Affiliates, of fifty
percent (50%) (or such lesser percentage
which is the maximum allowed to be owned by a foreign entity in a particular
jurisdiction) or more of the shares of stock entitled to vote for the election of
directors in the case of a corporation, or fifty percent (50%) (or such lesser
percentage which is the maximum allowed to be owned by a foreign entity in a particular
jurisdiction) or more of the equity interests in the case of any other type of legal
entity, or status as a general partner in any partnership, or any other arrangement
whereby a Party controls or has the right to control the board of directors or
equivalent governing body of a corporation or other entity. For purposes of this
Agreement, Affiliates shall also include Affiliates of Pioneer.

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CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

	 	b.	 	“Results” shall mean all information provided to DuPont and its Affiliates by Solexa,
or developed by Solexa, under this Restated Agreement, including datasets, generated in the
performance by Solexa of Analysis Services on DuPont Samples (“DuPont Results”) or Other
Samples (for use in Category-2 Services under the Work Plan) (“Other Results”), as further
described in the Work Plan.
	 
	 	c.	 	“DuPont Generated Results” shall mean all information, including data sets, generated
by DuPont and its Affiliates during the Term in the course of using the SBS Instrument and
SBS Reagents.
	 
	 	d.	 	“Exclusive Plants” shall mean [*].
	 
	 	e.	 	“Analysis Services” shall mean the application by Solexa of Solexa Technology to a
Sample to generate Results, as outlined in the Work Plan and as will be further specified
between the Parties during the Term via the JRC.
	 
	 	f.	 	“Intellectual Property” shall mean any right that protects any invention, improvement
or discovery, that is created or discovered prior to, during, or as a result of the
Services hereunder, whether or not patentable, and shall include, but is not limited to,
patent rights, plant variety protection certificates, patent applications, copyrights,
trademarks, and trade secrets.
	 
	 	g.	 	“Solexa Technology” shall mean any and all technologies owned or controlled by Solexa,
including but not limited to MPSS and SBS.
	 
	 	h.	 	“MPSSTM” shall mean Solexa’s Massively Parallel Signature Sequencing technology
involving the solid phase cloning of nucleic acids on beads and its applications, as
further described at the Solexa internet site, http://www.solexa.com/wt/page/mpss. For
example, and as further described at this site, MPSSTM is applied by Solexa to identify and
count the expressed sequence tags, each at least 17 bases long, in an mRNA Sample. Other
applications of MPSS include small RNA MPSS to identify and count small RNAs in an RNA
Sample. As used herein, “MPSS Services” means the application of MPSS technology by Solexa
to a customer’s or collaborator’s samples to generate sequence tag data that is shared with
such customer or collaborator.
	 
	 	i.	 	“Non-exclusive Plants” shall mean all plant species other than Exclusive Plants, except
for [*].

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CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

	 	j.	 	“Sample” shall mean the biological material and information provided by DuPont (“DuPont
Samples”) or by an academic institution as contemplated by the Work Plan (“Other Samples”)
under this Agreement for use by Solexa in performing Analysis Services.
	 
	 	k.	 	“SBS” shall mean Solexa’s Sequencing-By Synthesis (SBS) technology involving the
sequencing of templates immobilized on a proprietary flow cell surface via Clonal Single
Molecule Array TM technology as further described at http://www.solexa.com/wt/page/sbs. SBS
utilizes four proprietary fluorescently labeled nucleotides to sequence millions of DNA
clusters present on the flow cell surface. These nucleotides, specifically designed to
possess a reversible termination property, allow each cycle of the sequencing reaction to
occur simultaneously in the presence of all four nucleotides (A, C, G. T). In each cycle,
the polymerase is able to select the correct base to incorporate, with the natural
competition between all four alternatives leading to very high accuracy.
	 
	 	l.	 	“SBS Instrument” shall mean the early access version of Solexa’s SBS instrument,
together with the associated cluster station, and the commercial version thereof resulting
from the replacement or upgrade of the early access version, together with related
installation and training, as described in the Work Plan.
	 
	 	m.	 	“SBS Reagents” shall mean the consumables supplied by Solexa to DuPont for use on the
SBS Instrument, as described in the Work Plan.
	 
	 	n.	 	“Term” shall mean the 2006 calendar year, provided that in the event the commercial
version of the SBS Instrument has not been provided to DuPont as contemplated by the Work
Plan by the end of 2006, the portions of this Restated Agreement pertaining specifically to
the delivery of such instrument shall continue in effect until such delivery has been made.
	 
	 	o.	 	 “Work Plan” shall mean the description of the Analysis Services to be conducted under
this Agreement and the SBS Instrument, SBS Reagents and related services to be supplied
under this Agreement, attached as Schedule A herein.

	2.	 	Scope and Description of Services and Supply:

	 	a.	 	Services.  Solexa shall conduct the Analysis Services for DuPont, including
its Affiliates, during the Term using Samples as outlined in the Work Plan, or such other
written schedules, work plans or descriptions that the Parties may agree upon from time to
time and shall make part of this Restated Agreement.
	 
	 	 	 	Solexa hereby agrees (a) to use DuPont Samples solely to perform the Services for DuPont
and meet its obligations under this Agreement, and (b) to send all residual DuPont
Samples to DuPont (or another site designated by DuPont) within thirty (30) calendar
days after the date of completion of Analysis Services for such DuPont Samples, or at
the end of the Term, or at Termination of this Restated Agreement. In the event that
DuPont provides written direction to Solexa to destroy all residual DuPont Samples,
Solexa shall do so promptly.
	 
	 	 	 	Solexa shall not distribute, release, sell, disclose, or otherwise transfer the DuPont
Samples to, or use DuPont Samples with or on behalf of, any third party, except to such
affiliates of Solexa as may be necessary for the performance of the Analysis Services.
In such event, Solexa shall notify DuPont of such transfer or disclosure, and such
Solexa affiliates shall be bound by the same terms as contained herein regarding use and
treatment of DuPont Samples. DuPont agrees to pay directly, or to reimburse Solexa for,
any shipping, handling or other like expenses that may be incurred in providing DuPont
Samples to Solexa hereunder.

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CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

As consistent with the timelines described in the Work Plan, DuPont shall provide DuPont
Samples to Solexa as necessary for Solexa to conduct the applicable Analysis Services.
Solexa will procure Other Samples as contemplated by the Work Plan. Solexa shall
provide, at its own expense, all equipment, materials, information, know-how, and
related services as are necessary to perform the Analysis Services using DuPont Samples
and Other Samples and satisfy its obligations under this Restated Agreement with respect
thereto. Solexa shall promptly deliver all Results to DuPont upon completion of the
corresponding Analysis Services.

	 	b.	 	Supply. Solexa shall deliver and install the SBS Instrument in accordance with
the provisions of the Work Plan. Following delivery of the early access version of the SBS
Instruments, Solexa will supply SBS Reagents to DuPont for use on the SBS Instrument in
accordance with, and subject to the limitations set forth in, the Work Plan Solexa will
also provide training to DuPont personnel in the operation of the SBS Instrument as
described in the Work Plan.

3.   Exclusive Period.  [*] shall not [*] for any [*] in, or using, the [*] during [*];
or [*] up until the date on which [*] to [*]. [*] may [*] during the [*] to [*] in, or using,
the [*]. [*] shall be [*] to [*] with respect to [*], and [*] that may be under [*] by [*]
to a [*], as soon as such [*] becomes available. Nothing in this Section 3 shall restrict [*]
in any way from being able to [*] under [*] in effect [*] of the [*] for the [*], and [*] of
the [*] for the [*], whether or not such [*] would otherwise be in violation of this Section
3.

4.   Fees and Payments. As further described in the Work Plan, and, as full
consideration for the Analysis Services to be provided during the Term and the SBS Instrument
and SBS Reagents to be delivered to DuPont under this Restated Agreement, DuPont shall pay
Solexa a total amount not to exceed One Million Five Hundred Thousand Dollars (USD 1,500,000),
according to the payment schedule contained in the Work Plan. DuPont shall cause its
Affiliate, Pioneer Hi-Bred International, Inc. to make all payments under this Restated
Agreement. Except for the first payment of [*], which shall be paid by [*] without reliance
on an invoice, all other payments specified in the Work Plan will be made [*] days after
DuPont’s or its Affiliate’s receipt of an invoice from Solexa detailing the Analysis Services
provided and/or the instruments or consumables delivered and following DuPont’s receipt of the
specified applicable Results and/or products. Invoices shall be submitted to Pioneer’s
contract administrator identified below, and each invoice shall reference [*].

[*]

All amounts paid hereunder shall be made to Solexa in US Dollars by bank wire transfer to:

[*]

5.   Future Access. The Parties agree that beyond the Term, an appropriate agreement,
to be negotiated in good faith and mutually determined to be suitable for the nature and
delivery of Solexa services and products in such year(s), may be established between the
Parties.

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CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

6.   Term and Termination. This Restated Agreement shall extend for the Term, unless
extended by mutual written consent of the parties or earlier terminated (“Termination”)
through any of the following:

	 	a.	 	By mutual agreement of the Parties in writing at any time;
	 
	 	b.	 	By either Party upon sixty (60) days’ written notice, in the event the other
Party commits a material breach of this Restated Agreement, with such breach not
corrected by the breaching Party within the sixty (60) day period;
	 
	 	c.	 	By DuPont upon sixty (60) days’ notice in the event that Solexa is unable to
perform its obligations hereunder, to the reasonable satisfaction of DuPont, according
to the Work Plan; or
	 
	 	d.	 	By either Party at a moment’s notice in the event the other Party (i) becomes
insolvent or unable to pay its debts as they mature; (ii) makes an assignment for the
benefit of creditors; (iii) permits or procures the appointment of a receiver for its
assets; (iv) becomes the subject of any bankruptcy, insolvency, or similar proceeding;
or (v) is acquired by or merged with another Party.

In the event of Termination prior to completion of the Analysis Services requested and paid
by DuPont in advance of Termination, Solexa agrees that it will complete all such Analysis
Services that have been paid for by DuPont, and deliver to DuPont all Results of such
Analysis Service, that have been paid for, and return or destroy, at DuPont’s discretion,
all DuPont Samples remaining at Solexa at Termination.

7.   Effects of Termination. All payments for completed Analysis Services rendered or
for products supplied up to and including the last day of the Term, prior to expiration or
Termination, shall remain due and payable to Solexa, and payment for partially completed
Analysis Services performed hereunder at the time of Termination as described in Section 5
herein, shall be determined in good faith.

Expiration or Termination of this Agreement shall not relieve Solexa of any obligation with
respect to DuPont Confidential Information or DuPont Samples disclosed or DuPont Results or
DuPont Generated Results developed prior to such expiration or Termination and shall not
modify DuPont’s ownership or use rights in DuPont Confidential Information, DuPont Samples,
Results, DuPont Generated Results, or the SBS Instrument and SBS Reagents; and DuPont shall
exclusively own and have the right to use the results it generates using the SBS Instrument
after the Term.

8.   Relationship of Parties. Both Parties agree that in the performance of this
Restated Agreement, Solexa is an independent contractor and neither Solexa nor any of its
employees or agents will be an agent or employee of DuPont or its Affiliates or be covered by
DuPont’s or its Affiliates’ Worker’s Compensation Insurance or Unemployment Insurance.
Further, neither Solexa nor any of its employees or agents will be eligible to participate in
DuPont’s or its Affiliates’ retirement programs or be entitled to any other benefits from
DuPont or its Affiliates.

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CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

9.   Property and Use Rights.

	 	a.	 	Copyright. DuPont and Solexa agree that any copyrightable work(s)
developed in the performance of Analysis Services under this Restated Agreement with
respect to DuPont Samples constitute work(s) made for hire under the United States
Copyright Laws and that all right, title, and interests therein, including copyright,
shall vest in DuPont. In the event that any such work does not qualify as a work made
for hire under the United States Copyright laws, or for any other reason does not
constitute a work made for hire, Solexa by this Restated
Agreement hereby assigns all right, title, and interest, including copyright, in said
work(s) to DuPont, in perpetuity.
	 
	 	b.	 	Existing technology.  Solexa represents and warrants that it either
owns or has the right to use any technology or Intellectual Property used to carry out
the Analysis Services under this Agreement, and further represents and warrants that
neither Solexa Intellectual Property nor any existing or future Solexa contractual
obligation outside this Agreement shall prevent DuPont from using the DuPont Results
or, subject to the patent rights of any third party provider of Other Samples, Other
Results or from using the SBS Instrument and SBS Reagents in the manner in which they
are intended to be used.
	 
	 	c.	 	Results. DuPont, including its Affiliates, shall be the exclusive
owner of all right, title and interest in and to the DuPont Samples and DuPont Results
resulting from provision of Analysis Services under this Agreement. DuPont shall have
exclusive ownership and use rights to all discoveries, inventions and property that are
not directly related to Solexa Technology (“Developments”), arising from DuPont
Results. Solexa shall irrevocably and perpetually assign, transfer and convey to
DuPont all of Solexa’s right, title and interest, if any, in and to all DuPont Results
and DuPont Generated Results hereunder and to all Developments arising from such
results. Further, Solexa shall not disclose, transfer, sell, or use DuPont Results or
DuPont Generated Results to, or use DuPont Results or DuPont Generated Results with or
on behalf of, any third party. DuPont shall assume all responsibility for all costs
associated with the application, prosecution, maintenance, defense and enforcement of
patent applications and patents claiming all or a portion of the DuPont Samples, DuPont
Results and DuPont Generated Results. With respect to Other Results, DuPont shall be
the exclusive owner of all right, title and interest in and to any discoveries or
inventions made by DuPont arising from its use of the Other Results.
	 
	 	d.	 	Notwithstanding any other provision of this Agreement, and for the avoidance of
doubt, DuPont and its Affiliates shall have the right to use and disclose DuPont
Results and DuPont Generated Results, without exception, and to use and, after
publication by Solexa or the third party provider of Other Samples, disclose the
related Other Results, without exception, for any purpose whatsoever, without further
consideration to Solexa.
	 
	 	e.	 	Solexa or its successors of interest shall not assert against DuPont and its
Affiliates, business partners, agents or customers of each, any patent owned or
controlled by Solexa that would [*] making, having made, using and selling products
that were developed by DuPont and its Affiliates from [*] or from using the SBS
Instrument and SBS Reagents [*].
	 
	 	f.	 	Subject to full payment therefor as specified in the Work Plan, DuPont shall
own the SBS Instrument and SBS Reagents and shall have the unrestricted right and
license, without payment of additional compensation, to use the same [*].

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CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

	 	g.	 	No right or license, either expressed or implied, is granted to Solexa under any
material, information, patent, patent application, or trademark existing now or in the
future.

10.   Project Champions (PC’s).  A Project Champion (“PC”) shall be designated by each
of the Parties, which shall be one (1) representative from each Party, each of whom shall be
experienced in a relevant aspect of the Work Plan. These representatives are named in the
Work Plan. The PC’s
shall coordinate and manage the implementation of the Work Plan hereunder, including
conducting quarterly meetings at mutually convenient times and locations, to:

	 	a.	 	form and lead a joint research committee (“JRC”) made up of representatives of
the Parties and to encourage and facilitate ongoing cooperation and information
exchange between the Parties as necessary for the performance of each Party’s
obligations hereunder;
	 
	 	b.	 	plan and agree upon a timetable for the Samples to be submitted and the
Analysis Services to be conducted under the Work Plan;
	 
	 	c.	 	evaluate data and results of work related to the Work Plan and to make
recommendations to the Parties for changes thereto, if necessary, to further the
objectives of, and to achieve the technical objectives of the Parties under, this
Restated Agreement;

The JRC and PC’s shall have no power to amend this Restated Agreement and shall have only
such powers as are specifically delegated to them hereunder.

11.   Indemnification. Each Party agrees to defend, indemnify and hold the other Party
(including its officers, employees and agents) harmless from and against any and all
liability, loss, expense, reasonable attorneys’ fees, or claims for injury or damages arising
from the performance of this Restated Agreement, but only in proportion to and to the extent
such liability, loss, expense, reasonable attorneys’ fees, or claims for injury or damages are
caused by or result from the negligent or intentional acts or omissions of the indemnifying
Party, its officers, agents or employees.

12.   Disclaimer; Waiver

SOLEXA MAKES NO REPRESENTATION OR EXPRESS OR IMPLIED WARRANTY THAT THE RESULTS OBTAINED FROM
USE OF THE SAMPLES OR THE SBS INSTRUMENT AND REAGENTS WILL NOT INFRINGE INTELLECTUAL
PROPERTY RIGHTS OF THIRD PARTIES AND HEREBY DISCLAIMS THE SAME. DUPONT WILL ACCEPT THE
RESULTS AND THE SBS INSTRUMENT AND REAGENTS WITH THE KNOWLEDGE THAT THEY ARE EXPERIMENTAL IN
NATURE. BECAUSE THE AFORESAID ARE EXPERIMENTAL IN NATURE, THEY ARE BEING SUPPLIED TO
DUPONT WITH NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE.

13.   Confidential Information. “Confidential Information” shall mean any and all
information, know-how and data, technical or non-technical, disclosed or provided by one Party
(the “Disclosing Party”) to the other Party (the “Receiving Party”) for or about the work to
be performed hereunder, whether disclosed or provided in oral, written, graphic, photographic,
electronic, or any other form. Confidential Information of DuPont shall include DuPont
Samples, DuPont Results and DuPont Generated Results. Other Results shall be considered
Confidential

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CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

Information of Solexa and the provider of the Other Samples until such time that
such results are published in accordance with this Section 13. Each party shall use its best
efforts, consistent with its established policies and procedures, to protect the
confidentiality of the other Party’s Confidential Information. This Agreement applies to all
confidential information (including the terms of this Agreement) except to the extent that the
Confidential Information:

	 	a.	 	Was part of the public domain at the time of disclosure;
	 
	 	b.	 	Became part of the public domain by publication or otherwise, except by breach
of this Restated Agreement;
	 
	 	c.	 	Can be established to have been in the possession of Receiving Party at the
time of disclosure and was not acquired directly or indirectly from the Disclosing
Party under a confidentiality obligation;
	 
	 	d.	 	Was received from a third party without any restrictions; provided that the
information was not obtained by that third party, directly or indirectly, in breach of
a confidentiality obligation; or
	 
	 	e.	 	Can be established to have been developed by Receiving Party independently of
any disclosure by Disclosing Party.

If a Disclosing Party requests protection of its Confidential Information by means not
normally employed by the Receiving Party to protect its own confidential information,
Disclosing Party agrees to reimburse Receiving Party in full for any costs it may incur in
order to do so, which costs shall be pre-approved by the Disclosing Party. Further, should
the Receiving Party be required by judicial or other governmental authority to disclose the
Disclosing Party’s Confidential Information, the Receiving Party shall immediately inform
and cooperate with the Disclosing Party in responding to such requirement in a manner that
maintains the confidentiality of the information to the maximum extent possible.

Without limiting the foregoing, each Party will take at least those measures to protect the
other Party’s Confidential Information that it takes to protect its own confidential
information of a similar nature. Each Party agrees to immediately notify the other Party
should it become aware of any unauthorized use or disclosure of Confidential Information.

The Receiving Party may disclose the Disclosing Party’s Confidential Information only to the
Receiving Party’s and its Affiliates’ employees, consultants, or licensees who (a) have a
need-to-know in order to perform or satisfy its obligations under this Restated Agreement
and (b) are under obligation not to disclose or use Confidential Information, except as
otherwise provided in this Restated Agreement.

Notwithstanding anything to the contrary in this Restated Agreement, it is expressly
understood that Solexa shall have the right to disclose or authorize others to disclose the
Other Results in any written or oral form it desires. In advance of any such publication,
however, Solexa shall provide Pioneer with the opportunity to review any such disclosure
for at least ten (10) business days in advance of any such disclosure. DuPont will have the
right to comment within such period, and Solexa will consider such comments but will not be
obligated to alter the contents of the proposed public disclosure, except if requested by
DuPont to delete all references to DuPont or its Affiliates, or to delete any Confidential
Information of DuPont.

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CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

14.   Notice. Any notice required or permitted hereunder shall be sent to the parties
via U.S. Mail, postage prepaid, or by personal service, facsimile or as may otherwise be
permitted by law, at the following addresses:

	 	 	 	 	 
	 	 	                    DuPont:	 	          SOLEXA:
	 
	 	 	 	 
	 

	 	E.I. du Pont de Nemours and Co.
	 	Solexa, Inc.
	 

	 	Crop Genetics Research
	 	25861 Industrial Blvd.
	 

	 	DuPont Experimental Station
	 	Hayward, CA 94545
	 

	 	Rt. 141 at Henry Clay Rd.
	 	USA
	 

	 	Wilmington, DE 19880-0353 USA	 	 
	 

	 	Attention: [*]
	 	Attention: [*]
	 

	 	Fax: [*]
	 	Fax: [*]

Either party may change its address by written notice to the other during the term. All
notices relating to this Restated Agreement shall be in writing and shall be effective upon
receipt.

15.   Further Actions. The Parties agree to promptly execute, acknowledge and deliver
such further instruments, and to do all such other acts, as the Parties agree are necessary or
appropriate in order to carry out the purposes and intent of this Restated Agreement.

16.   Governing Law. This Restated Agreement shall be construed in accordance with the
laws of the State of California, without regard to its conflicts of laws principles.

17.   Assignment. This Restated Agreement shall not be assignable or otherwise
transferable by either Party without the consent of the other Party, except that DuPont may,
without such consent, assign this Restated Agreement to any purchaser of all or substantially
all of the assets in the line of business to which this Restated Agreement pertains, or to any
successor corporation that results from reincorporation, merger or consolidation of such Party
with or into such purchaser or such corporation and DuPont may assign this Agreement to
Affiliates. Upon assignment, the rights and obligations under this Agreement shall be binding
upon and inure to the benefit of said purchaser or successor in interest.

18.   Publicity and Use of Names. Solexa and DuPont shall not to use the other’s name
or trademarks (including those of the other’s Affiliates) in any advertising, publicity,
publication or news release related to this Restated Agreement and its subject matter without
the prior written consent of the other Party.

19.   Integrated Agreement, Amendment. This Restated Agreement contains all the terms
agreed upon by both Parties with respect to the subject matter hereof and may not be amended
except in writing and signed by both Parties. The terms of this Restated Agreement shall
govern, in the case of conflict, over terms contained in the Work Plan or any form document
including, but not limited to, quotes, invoices or proposals. The Previous Agreement is
terminated as of the Effective Date of this instant Restated Agreement, provided that all
work, results, inventions, rights, and obligations arising under or covered by the Previous
Agreement shall continued to be governed by the terms and conditions of the Previous
Agreement.

20.   Counterparts. This Restated Agreement may be executed in counterparts and by
facsimile signature, which shall together constitute one and the same agreement.

Page 9 of 12

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

     IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly
authorized representatives, as of the dates set forth below.

	 	 	 
	E.I. DU PONT DE NEMOURS AND COMPANY	 	SOLEXA, INC.
	 
	 	 
	By: /s/ Robert T. Giaquinta

	 	By: /s/ Mary L. Schramke
	 
	 	 
	Name: Robert T. Giaquinta

	 	Name: Mary L. Schramke
	 
	 	 
	Title: Director

	 	Title: Vice President & GM Services
	 
	 	 
	Date: 31 March 2006

	 	Taxpayer ID # 94-3161073
	 
	 	 
	 

	 	Date: 4/4/06
	 
	 	 
	 

	 	By: /s/ John West
	 
	 	 
	 

	 	Name: John West
	 
	 	 
	 

	 	Title: Chief Executive Officer
	 
	 	 
	 

	 	Date: 4/4/06

Page 10 of 12

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

Schedule A

2006 Work Plan

Finalized March 30, 2006

(Note: as used herein, “DuPont” includes DuPont’s Affiliate, Pioneer)

Principles for 2006:

DuPont obtains early access to SBS technology prior to formal commercial launch, for platform
evaluation and processing of 2006 samples.

DuPont and Solexa cooperate to efficiently validate the platform for plant samples in gene
expression and selected other application areas.

Consideration from DuPont tied to deliverables and/or milestones related to Solexa’s provision of
SBS technology.

Objective as of end of 2006 is a completed evaluation of SBS performance from both Solexa’s SBS
services and DuPont’s in-house use of the technology.

2006 Work Plan will be effective as of January 1, 2006.

For 2006:

$1.5 Million
maximum payment from DuPont for delivered Solexa SBS Services and
instruments/consumables.

[*] on [*] at [*].

[*] on [*] upon termination of [*] by [*].

The Project Champions (PCs) will be the following representatives:

     For DuPont : [*]

     For
Solexa : [*]

SBS Technology delivery for 2006:

SBS Services:

	 	•	 	[*]

Category-2: Expanded Validation of SBS platform

	 	•	 	[*]

Category-3: DuPont discretionary Services and/or Consumables Kit

purchase

	 	•	 	[*]

SBS instrumentation/consumables:

	 	•	 	[*]

Page 11 of 12

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

Payments:

For the services performed and the deliverables provided to DuPont in 2006 as described in this
work plan, DuPont will pay Solexa up to $1.5 million US dollars as follows:

Except for [*], all other payments in connection to the 2006 Work Plan will be based on [*] of [*],
according to the schedule below. All payments except for [*] shall be made by DuPont following
receipt of an invoice from Solexa detailing [*].

	 	 	 	 	 
	Deliverable/Milestone	 	Payment	 	Payment Date
	[*]

	 	[*]
	 	[*]
	[*]

	 	[*]
	 	[*]
	[*]

	 	[*]
	 	[*]
	[*]

	 	[*]
	 	[*]
	[*]

	 	[*]
	 	[*]

[*]

SBS platform and instrument Objectives

	 	•	 	[*]

DuPont access to Solexa technology in 2007

Any service, consumables kits and instrument requests by DuPont in 2007 to be at DuPont’s election
and to be covered by a separate supply/services agreement (as appropriate) to be negotiated in good
faith. Solexa will provide at costs commensurate with other customers requesting similar volumes
at same stage of development or commercialization. [*]

Page 12 of 12exv10w8

 

Exhibit 10.8

AFFILIATED COMPUTER SERVICES, INC.

CLASS A COMMON STOCK

NOTICE OF NONSTATNTORY STOCK OPTION GRANT

WITHIN SWITZERLAND (CANTON OF FRIBOURG) TO

[___]

 

     You have been granted an option to purchase Class A Common Stock of Affiliated Computer
Services, Inc. (the “Company”) as follows:

	 	 	 	 	 
	 

	 	Option Number
	 	[___]
	 
	 	 	 	 
	 

	 	Date of Grant
	 	[___]
	 
	 	 	 	 
	 

	 	Number of Shares
	 	[___]
	 
	 	 	 	 
	 

	 	Option Price Per Share
	 	[$___]
	 
	 	 	 	 
	 

	 	Term/Expiration Date
	 	Earlier of 10 years from the Date of Grant or 90 days of termination of
employment for any reason
	 
	 	 	 	 
	 

	 	Vesting Schedule
	 	60% as of the date that is three years after the Date of Grant, and 20%
annually on each anniversary of the Date of Grant thereafter, or earlier in certain
events as expressly provided in the Stock Option Agreement and 1997 Stock Incentive
Plan.
	 
	 	 	 	 
	 

	 	Exercise Schedule
	 	Options may be exercised on or after the date of vesting and until the
expiration date.

By your signature and the signature of the Company’s representative below, you and the Company
agree that this option is granted under and governed by the terms and conditions of the Stock
Option Agreement and the Company’s 1997 Stock Incentive Plan attached hereto as Exhibit “A” and
Exhibit “B”, respectively and made a part of this document.

	 	 	 	 	 
	AFFILIATED COMPUTER SERVICES, INC.	 	OPTIONEE:
	 
	 	 	 	 
	BY:
	 	 	 	 
	 

	 	 
	 	 
	 

	 	WILLIAM L. DECKELMAN, JR.
	 	[___]
	 

	 	EXECUTIVE VICE PRESIDENT	 	 
	 

	 	& GENERAL COUNSEL	 	 

 

 

EXHIBIT “A”

AFFILIATED COMPUTER SERVICES, INC.

STOCK OPTION AGREEMENT FOR SWITZERLAND (CANTON OF FRIBOURG)

     THIS STOCK OPTION AGREEMENT (this “Agreement”), effective as of the date of the Notice of
Grant (as hereinafter defined) to which it is attached shall, along with the Plan (as hereafter
defined), govern the terms of the Notice of Grant by and between Affiliated Computer Services,
Inc., a Delaware corporation (the “Company”), and the Optionee identified in the Notice of Grant
(“Optionee”). Capitalized terms not otherwise defined in this Agreement have the meanings ascribed
to such terms in the Plan.

WITNESSETH

     WHEREAS, the Company has adopted the Affiliated Computer Services 1997 Stock Incentive Plan
(the “Plan”), which provides for the grant of stock options to certain selected Non-Employee
Directors, Employees and consultants of the Company or its subsidiaries with respect to shares of
the Company’s Class A Common Stock, par value $.01 per share (“Common Stock”);

     WHEREAS, the stock options provided for under the Plan are intended to comply with the
requirements of Rule 16b-3 under the United States Securities Exchange Act of 1934, as amended (the
“Exchange Act”); and

     WHEREAS, the Company has selected Optionee to participate in the Plan and desires to award to
Optionee the stock option described in this Agreement.

     NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements
herein contained, as an inducement to Optionee to continue as a director, employee or consultant of
the Company or its subsidiaries and to promote the success of the business of the Company and its
subsidiaries, the parties hereby agree as follows:

     1. Grant of Option. The Company hereby grants to Optionee, upon the terms and subject
to the conditions, limitations and restrictions set forth in this Agreement, the Plan (which Plan
is incorporated herein by reference), and the Notice of Nonstatutory Stock Option Grant dated as of
the date of this Agreement (the “Notice of Grant”), an option (the “Option”) to acquire a total
number of shares of Common Stock (the “Shares”) as set forth in the Notice of Grant, at the
exercise price per share set forth in the Notice of Grant, such grant to be effective as of the
date of grant designated in the Notice of Grant (the “Award Date”). The Shares of Common Stock
subject to the Option shall vest in accordance with the vesting schedule set forth in the Notice of
Grant (the “Vesting Schedule”) and shall be exercisable in accordance with the exercise schedule
set forth in the Notice of Grant (the “Exercise Schedule”).

     2. Exercise of Option. This Option shall be exercisable during its term in accordance
with the Exercise Schedule and with the provisions of Section 9 of the Plan as follows:

Affiliated Computer Services, Inc.

Stock Option Agreement (Switzerland)

Page 1 of 5

 

 

          (i) Right to Exercise.

               (a) The Option may not be exercised for a fraction of share.

               (b) In the event of the Optionee’s death, disability or other termination of employment, the
exercisability of the Option is governed by Sections 9 and 10 of the Plan, subject to the
limitation contained in subsections (c), (d), and (d) of this Section 2(i).

               (c) In no event may the Option be exercised after the date of expiration of the term of the
Option as set forth in the Notice of Grant.

               (d) The Option may be exercised only with respect to the vested portion thereof in accordance
with the Notice of Grant.

               (e) Upon the Optionee’s termination of employment for any reason, the Option may be exercised
only (i) with respect to the portion of the Option that was vested upon the Optionee’s termination
of employment and (ii) for a period of 90 days after the Optionee’s termination of employment.

          (ii) Mandatory Cashless Sell-All Method of Exercise. The Option shall be exercisable
by written notice, which notice shall state Optionee’s election to exercise the Option and the
number of Shares in respect of which the Option is being exercised. Such written notice shall be
signed by Optionee and shall be delivered in person or by certified mail to the Secretary of the
Company. The Option may only be exercised by means of the cashless sell-all method. Upon
exercise, the Company (or its broker) shall sell all of the Shares in respect of which the Option
is being exercised and shall remit to the Optionee the sale proceeds of such sale less (i) the
exercise price, (ii) an amount sufficient to satisfy the Company’s income tax withholding duties,
if any, (iii) an amount sufficient to satisfy Optionee’s social insurance contributions, and (iv)
brokerage fees relating to the sale. The written notice shall be accompanied by authorization for
the Company (or its broker) to sell all of the Shares in respect of which the Option is being
exercised and to withhold from such sale proceeds (i) the exercise price, (ii) an amount sufficient
to satisfy the Company’s income tax withholding duties, if any, and (iii) an amount sufficient to
satisfy Optionee’s social insurance contributions, together with such other documents as may be
required by the Company (or its broker) to effect such sale and disposition of sale proceeds. The
Option shall be deemed to be exercised upon receipt by the Company of such written notice and such
other documents as may be required by the Company (or its broker) to effect the cashless sell-all
exercise.

     3. Method of Payment. Payment of the exercise price shall be made in cash or, as
determined by the Administrator, in accordance with the terms and conditions of the Plan, including
by check, promissory note or other Shares which (x) in the case of Shares acquired upon exercise of
an Option, either have been owned by Optionee for more than six months on the date of surrender or
were not acquired, directly or indirectly, from the Company, and (y) have a Fair Market Value on
the date of surrender equal to the aggregate exercise price of the Shares as to which the Option is
being exercised, or in any combination of cash and Shares having an aggregate Fair Market Value
equal to such exercise price. No Shares may be issued by the Company until Optionee makes full
payment to the Company of the applicable exercise price.

Affiliated Computer Services, Inc.

Stock Option Agreement (Switzerland)

Page 2 of 5

 

 

     4. Restrictions on Exercise. This Option may not be exercised until such time as the
Plan has been approved by the stockholders of the Company, or if the issuance of such Shares upon
such exercise or the method of payment of consideration for such shares would constitute a
violation of any applicable federal or state securities or other law or regulation, including any
rule under Part 207 of Title 12 of the Code of Federal Regulations. As a condition to the exercise
of this Option, the Company may require Optionee to make any representation and warranty to the
Company as may be required by any applicable law or regulation.

     5. Termination of Employment. In the event of termination of Optionee’s consulting
relationship or Continuous Status as an Employee with, or status as a Non-Employee Director of, the
Company, subject to Section 7 of this Agreement, the Option may be exercised only as, and within
the time periods, provided in the Plan.

     6. Death of Optionee. In the event of the death of an Optionee, the Option may be
exercised, according and subject to its terms, by the Optionee’s estate or by a person who acquired
the right to exercise the Option by bequest or inheritance, but only to the extent the Option was
vested at the date of death. To the extent the Option was not vested at the date of death, the
unvested portion of the Option shall automatically terminate.

     7. Termination for Cause. Notwithstanding Sections 5 and 6 of this Agreement, if
Optionee’s consulting relationship or Continuous Status as an Employee or a Non-Employee Director
is terminated by the Company for Cause, Optionee shall forfeit the Option in its entirety, whether
vested or unvested. For purposes of this Section 7, an Optionee shall be deemed to have been
terminated for Cause if the Optionee fails to satisfactorily perform his or her assigned duties or
commits an act of gross negligence or willful misconduct, including, but not limited to, a
dereliction of duty or the committing of and conviction for a crime involving breach of fiduciary
duty to an employer, a felony or a crime involving moral turpitude.

     8. Vesting of Option Upon Change of Control. If the Company undergoes a Change of
Control, the Option, whether or not vested at such time, shall become fully and completely vested
and exercisable, effective the day immediately prior to such Change of Control. For purposes of
the preceding sentence, a “Change of Control” shall have occurred if the Company is merged,
consolidated, or reorganized into or with another person, entity, or group of entities under common
control or if a majority of the outstanding capital stock or all or substantially all of the assets
of the Company are sold to any other person, entity, or group of entities under common control and
as a result of such merger, consolidation, reorganization, or sale of capital stock or assets, more
than 51% of the combined voting power of the then outstanding voting securities of the surviving
person or entity immediately after such transaction are held in the aggregate by a person, entity
or group of entities under common control who beneficially owned less than 51% of the combined
voting power of the Company prior to such transaction.

     9. Non-Transferability of Option. The Option may not be transferred in any manner
otherwise than by will or by the laws of descent or distribution and may be exercised during the
lifetime of Optionee only by the Optionee. The terms of the Option and this Agreement shall be
binding upon the executors, administrators, heirs, successors, and assigns of the Optionee.

Affiliated Computer Services, Inc.

Stock Option Agreement (Switzerland)

Page 3 of 5

 

 

     10. Term of Option. The Option may be exercised only within the term set out in the
Notice of Grant, and may be exercised during such term only in accordance with the Plan and the
terms of this Agreement. The limitations set out in Section 7 of the Plan regarding Options
granted to more than ten percent (10%) stockholders shall apply to the Option.

     11. U.S. Prospectus. The Optionee acknowledges receipt of a copy of the prospectus
relating to the offering of securities registered with the U.S. Securities and Exchange Commission
of form S-8, which prospectus includes a Swiss prospectus supplement and a brief summary as of the
date of this Agreement of some of the federal and cantonal tax consequences of exercise of the
Option and the disposition of the Shares.

     SUCH TAX SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE.
OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THE OPTION OR DISPOSING OF THE SHARES.

     12. Consent to Transfer Personal Data. By signing below, the Optionee voluntarily
acknowledge and consent to the collection, use, processing and transfer of personal data as
described in this paragraph. The Optionee is not obliged to consent to such collection, use,
processing and transfer of personal data. However, failure to provide the consent may affect the
Optionee’s ability to participate in the Plan. The Company, its subsidiaries and Optionee’s
employer hold certain personal information about you, including your name, home address and
telephone number, date of birth, social security number or other employee identification number,
salary, nationality, job title, any shares of stock or directorships held in the Company, details
of all options or any other entitlement to shares of stock awarded, canceled, purchased, vested,
unvested or outstanding in your favor, for the purpose of managing and administering the Plan
(“Data”). The Company and/or its subsidiaries will transfer Data amongst themselves as necessary
for the purpose of implementation, administration and management of your participation in the Plan,
and the Company and/or any of its subsidiaries may each further transfer Data to any third parties
assisting the Company in the implementation, administration and management of the Plan. These
recipients may be located in the European Economic Area, or elsewhere throughout the world, such as
the United States. You authorize them to receive, possess, use, retain and transfer the Data, in
electronic or other form, for the purposes of implementing, administering and managing your
participation in the Plan, including any requisite transfer of such Data as may be required for the
administration of the Plan and/or the subsequent holding of Shares on your behalf to a broker or
other third party with whom you may elect to deposit any Shares acquired pursuant to the Plan. You
may, at any time, review Data, require any necessary amendments to it or withdraw the consents
herein in writing by contacting the Company; however, withdrawing your consent may affect your
ability to participate in the Plan.

     13. Acknowledgement of Discretionary Nature of the Plan; No Vested Rights. Optionee
acknowledge and agree that the Plan is discretionary in nature and limited in duration, and may be
amended, cancelled, or terminated by the Company, in its sole discretion, at any time. The grant
of stock options under the Plan is a one-time benefit and does not create any contractual or other
right to receive a grant of stock options or benefits in lieu of stock options in the future.
Future grants, if any, will be at the sole discretion of the Company, including, but not limited
to, the

Affiliated Computer Services, Inc.

Stock Option Agreement (Switzerland)

Page 4 of 5

 

 

timing of any grant, the number of options, vesting provisions, and the exercise price.

     14. Termination Indemnities. The Optionee’s participation in the Plan is voluntary.
The value of the Company stock option is an extraordinary item of compensation outside the scope of
the Optionee’s employment contract, if any. As such, the stock option is not part of normal or
expected compensation for purposes of calculating any severance, resignation, redundancy, end of
service payments, bonuses, long-service awards, pension, or retirement benefits or similar
payments. Rather, the awarding of a stock option to you under the Plan represents a mere
investment opportunity.

     15. Receipt of Plan; Understanding of Terms. Optionee acknowledges receipt of a copy
of the Plan and certain information related thereto and represents that he or she is familiar with
the terms and provisions thereof, and hereby accepts this Agreement and the Option subject to all
of the terms and provisions thereof. Optionee has reviewed the Plan and this Agreement in their
entirety, has had an opportunity to obtain the advice of counsel prior to executing this Agreement
and fully understands all provisions relating to the Option. Optionee hereby agrees to accept as
binding, conclusive and final all decisions or interpretations of the Board upon any questions
arising under the Plan.

Affiliated Computer Services, Inc.

Stock Option Agreement (Switzerland)

Page 5 of 5

 

 

EXHIBIT “B”

AFFILIATED COMPUTER SERVICES, INC.

1997 STOCK INCENTIVE PLAN

     1. Purposes of the Plan. The purposes of this Plan are to attract and retain the best
available personnel for positions of substantial responsibility, to provide additional incentive to
Employees, Non-Employee Directors and Consultants of the Company and its Subsidiaries and to
promote the success of the Company’s business. Options granted under the Plan may be incentive
stock options (as defined under Section 422 of the Code) or non-statutory stock options, as
determined by the Administrator at the time of grant of an option. Stock purchase rights, stock
appreciation rights, deferred stock, dividend equivalents and restricted stock may also be granted
under the Plan. It is intended that certain Performance Based Grants made to “covered employees”
(as defined in Code Section 162(m)(3)) will qualify as performance based compensation under Code
Section 162(m)(4)(C), and the pertinent provisions of the Plan shall be interpreted accordingly.

     2. Definitions. As used herein, the following definitions shall apply:

     (a) “Administrator” means the Board or any of its Committees appointed pursuant to
Section 4 of the Plan, acting pursuant to Section 4(a) of the Plan at the time in question.

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

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

     (d) “Committee” means a committee or committees appointed by the Board of Directors in
accordance with paragraph (a) of Section 4 of the Plan.

     (e) “Common Stock” means the Class A Common Stock of the Company, provided that if the
Company’s certificate of incorporation is amended after the date hereof to reclassify any
shares of the Company’s stock, “Common Stock” shall include any shares reclassified as Class
A Common Stock or any other class of common stock of the Company.

     (f) “Company” means Affiliated Computer Services, Inc., a Delaware corporation.

     (g) “Consultant” means a member of any advisory board of the Company or any Parent or
Subsidiary and any person, including an advisor, who is engaged by the Company or any Parent
or Subsidiary to render services and is compensated for such services; provided that the
term Consultant shall not include directors who are paid only a director’s fee by the
Company, except if such director is a member of any advisory board of the Company or any
Parent or Subsidiary.

     (h) “Continuous Status as an Employee” means the absence of any interruption or
termination of the employment relationship by the Company or any Subsidiary. Continuous
Status as an Employee shall not be considered interrupted in the case of: (i) sick leave;
(ii) military leave; (iii) any other leave of absence approved by the Board, unless
reemployment upon the expiration of such leave is guaranteed by contract or statute, or
unless provided otherwise pursuant to Company policy adopted from time to time; or (iv) in
the case of transfers between locations of the Company or between the Company, its
Subsidiaries or its successor.

Exhibit “B”

Affiliated Computer Services, Inc.

1997 Stock Incentive Plan — Page 1 of 16

 

 

     (i) “Deferred Stock” means a grant of Shares to be issued at a deferred date pursuant
to Section 15(a) below.

     (j) “Dividend Equivalent” means a grant of rights described in Section 15(b) below.

     (k) “Employee” means any person, including officers and directors, employed by the
Company or any Parent or Subsidiary of the Company. The payment of a director’s fee by the
Company shall not be sufficient to constitute “employment” by the Company.

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

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

     (i) If the Common Stock is listed on any established stock exchange or a
national market system including, without limitation, the New York Stock Exchange
(“NYSE”) its Fair Market Value shall be the closing sales price for such stock (or
the closing bid, if no sales were reported, as quoted on such system or exchange for
the last market trading day prior to the time of determination) as reported in the
Wall Street Journal or such other source as the Administrator deems reliable;

     (ii) If the Common Stock is quoted on the NASDAQ System (but not on the
National Market System thereof) or regularly quoted by a recognized securities
dealer but selling prices are not reported, its Fair Market Value shall be the mean
between the high and low asked prices for the Common Stock; or

     (iii) In the absence of an established market for the Common Stock, the Fair
Market Value thereof shall be determined in good faith by the Administrator based
upon the book value of the Company (or such other valuation method as is deemed
appropriate by the Administrator).

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

     (o) “Non-Employee Director” means a director of the Company who is not an Employee.

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

     (q) “Option” means a stock option granted pursuant to the Plan.

     (r) “Optioned Stock” means the Common Stock subject to an Option.

     (s) “Optionee” means an Employee or Consultant who receives an Option.

Exhibit “B”

Affiliated Computer Services, Inc.

1997 Stock Incentive Plan — Page 2 of 16

 

 

     (t) “Parent” means, for purposes of issuance of Incentive Stock Options under the Plan,
a “parent corporation,” whether now or hereafter existing, as defined in Section 425(e) of
the Code.

     (u) “Performance Based Grant” means an Option or Stock Appreciation Right granted to a
“covered employee” (as defined in Code Section 162(m)(3)) that the Administrator designates
as a “Performance Based Grant.” Provided, that nothing in the Plan shall be construed to
prevent the issuance of Options or other rights to such “covered employees” that are not
Performance Based Grants if the Administrator so elects.

     (v) “Plan” means this 1997 Stock Plan, as amended.

     (w) “Restricted Stock” means shares of Common Stock acquired pursuant to a grant of
Stock Purchase Rights under Section 12 of the Plan or a Restricted Stock Grant pursuant to
Section 14 of the Plan.

     (x) “Severance Agreement” means a severance agreement or arrangement between the
Company and any executive officer of the Company.

     (y) “Share” means a share of the Common Stock, as adjusted in accordance with Section
17 of the Plan.

     (z) “Stock Appreciation Right” means an award of a right to benefit from the
appreciation of Common Stock granted pursuant to Section 13 of the Plan.

     (aa) “Subsidiary” means, for purposes of issuance of Incentive Stock Options under the
Plan, a “subsidiary corporation”, whether now or hereafter existing, as defined in Section
425(f) of the Code.

     3. Stock Subject to the Plan. The maximum aggregate number of Shares which may be optioned,
sold, granted, or otherwise issued under the Plan shall initially be 3,675,000, which amount may,
at the discretion of the Board, be increased from time to time to a number such that the sum of (a)
the number of shares of Common Stock covered by then outstanding options granted pursuant to the
Company’s 1988 Stock Option Plan and held by current employees and consultants, as defined in such
plan, (b) the number of shares of Common Stock covered by their outstanding options granted
pursuant to this Plan and held by current Employees, Consultants and Non-Employee Directors, and
(c) the number of shares of Common Stock available for issuance pursuant to options to be granted
pursuant to this Plan equals 12.8% of the total number of Shares of Common Stock of the Company and
shares of any other class of common stock of the Company outstanding from time to time; provided
however, subject to adjustment under Section 17 of the Plan, the number of Shares which may be
optioned, sold, granted, or otherwise issued under the Plan shall never be less than 3,675,000. The
Shares may be authorized, but unissued, or reacquired Common Stock. Notwithstanding the foregoing,
subject to adjustment under Section 17 of the Plan, no more than 3,675,000 Shares will be available
for the granting of Incentive Stock Options under the Plan.

     If an Option should expire or become unexercisable for any reason without having been
exercised in full, or other rights to Shares granted under the Plan should lapse or be forfeited,
the unpurchased,

Exhibit “B”

Affiliated Computer Services, Inc.

1997 Stock Incentive Plan — Page 3 of 16

 

 

unissued or forfeited Shares which were subject thereto shall, unless the Plan shall have been
terminated, become available for future grant under the Plan.

     4. Administration of the Plan.

     (a) Procedure.

     (i) Administration with Respect to Directors and Officers. With respect to
grants of Options, Stock Purchase Rights and other rights and awards hereunder to
Employees who are also officers or directors of the Company, the Plan shall be
administered by (A) the Board if the Board may administer the Plan in compliance
with Rule 16b-3 promulgated under the Exchange Act or any successor thereto (“Rule
16b-3”) with respect to a plan intended to qualify thereunder as a discretionary
plan, or (B) a Committee designated by the Board to administer the Plan, which
Committee shall be constituted in such a manner as to permit the Plan to comply with
Rule 16b-3 with respect to a plan intended to qualify thereunder as a discretionary
plan. With respect to grants to Non-Employee Directors under the Plan, the Plan
shall be administered by the Board in accordance with Rule 16b-3, provided that no
Non-Employee Director shall vote on any decision affecting his individual benefits
under the Plan. Once appointed, such Committee shall continue to serve in its
designated capacity until otherwise directed by the Board. Notwithstanding the
foregoing, with respect to Performance Based Grants to any “covered employee” (as
defined in Code Section 162(m)), the Plan shall be administered by a Committee of
the Board comprised solely of two or more outside directors (as defined in Code
Section 162(m)(4)(C)). From time to time the Board may increase the size of the
Committee and appoint additional members thereof, remove members (with or without
cause) and appoint new members in substitution therefor, fill vacancies, however
caused, and remove all members of the Committee and thereafter directly administer
the Plan, all to the extent permitted by Rule 16b-3 with respect to a plan intended
to qualify thereunder as a discretionary plan.

     (ii) Multiple Administrative Bodies. If permitted by Rule 16b-3, the Plan may
be administered by different bodies with respect to directors, non-director officers
and Employees who are neither directors nor officers.

     (iii) Administration with Respect to Consultants and Other Employees. With
respect to grants of Options or Stock Purchase Rights to Employees or Consultants
who are neither directors nor officers of the Company, the Plan shall be
administered by (A) the Board or (B) a Committee designated by the Board, which
Committee shall be constituted in such a manner as to satisfy the legal requirements
relating to the administration of incentive stock option plans, if any, of Delaware
corporate and securities laws and of the Code (the “Applicable Laws”). Once
appointed, such Committee shall continue to serve in its designated capacity until
otherwise directed by the Board. From time to time the Board may increase the size
of the Committee and appoint additional members thereof, remove members (with or
without cause) and appoint new members in substitution therefor, fill vacancies,
however caused, and remove all members of the Committee and thereafter directly
administer the Plan, all to the extent permitted by the Applicable Laws.

Exhibit “B”

Affiliated Computer Services, Inc.

1997 Stock Incentive Plan — Page 4 of 16

 

 

     (b) Powers of the Administrator. Subject to the provisions of the Plan and in the case
of a Committee, the specific duties delegated by the Board to such Committee, the
Administrator shall have the authority, in its discretion:

     (i) to determine the Fair Market Value of the Common Stock, in accordance with
Section 2(m) of the Plan;

     (ii) to select the Consultants, Employees and Non-Employee Directors to whom
Options and Stock Purchase Rights may from time to time be granted hereunder;

     (iii) to determine whether and to what extent Options, Stock Purchase Rights
and other rights, or any combination thereof, are granted hereunder;

     (iv) to determine the number of Shares of Common Stock to be covered by each
such award granted hereunder; provided, however, that no Optionee who is a “covered
employee” as defined in Code Section 162(m)(3) shall receive in any one fiscal year
of the Company grants of Options and Stock Appreciation Rights with respect to more
than the initial number of shares subject to the Plan, as set forth in Section 3;

     (v) to approve forms of agreement for use under the Plan;

     (vi) to determine the terms and conditions, not inconsistent with the terms of
the Plan, of any award granted hereunder (including, but not limited to, the share
price and any restriction or limitation, or any vesting acceleration or waiver of
forfeiture restrictions regarding any Option or other award and/or the Shares of
Common Stock relating thereto, based in each case on such factors as the
Administrator shall determine, in its sole discretion) which shall be set forth in a
written award document or agreement approved by the Administrator;

     (vii) to determine whether and under what circumstances an Option may be
settled in cash under subsection 9(f) instead of Common Stock;

     (viii) to determine whether, to what extent and under what circumstances Common
Stock and other amounts payable with respect to an award under this Plan shall be
deferred either automatically or at the election of the participant (including
providing for and determining the amount, if any, of any deemed earnings on any
deferred amount during any deferral period) in accordance with Section 15(a) below;

     (ix) to reduce the exercise price of any Option or Stock Appreciation Right to
the then current Fair Market Value if the Fair Market Value of the Common Stock
covered by such Option or Stock Appreciation Right shall have declined since the
date the Option was granted. Any such reduction in exercise price shall be subject
to the requirements of section 8(a) below as if a new option were granted, and shall
be treated as the granting of additional options for purposes of the share
limitation set forth in section 4(b)(iv) above; and

     (x) to determine the terms and restrictions applicable to Restricted Stock,
Deferred Stock, and Dividend Equivalents.

Exhibit “B”

Affiliated Computer Services, Inc.

1997 Stock Incentive Plan — Page 5 of 16

 

 

     (c) Effect of Committee’s Decision. All decisions, determinations and interpretations
of the Administrator shall be final and binding on all Optionees and any other holders of
any Options.

     5. Eligibility.

     (a) Nonstatutory Stock Options, Stock Purchase Rights, Stock Appreciation Rights,
Deferred Stock, Dividend Equivalents and Restricted Stock may be granted to Employees,
Consultants and Non-Employee Directors. Incentive Stock Options may be granted only to
Employees. An Employee, Consultant or Non-Employee Director who has been granted an Option
or other awards may, if he is otherwise eligible, be granted an additional Option or Options
or other awards.

     (b) Each Option shall be designated in the written option agreement as either an
Incentive Stock Option or a Nonstatutory Stock Option. However, notwithstanding such
designations, to the extent that the aggregate Fair Market Value of the Shares with respect
to which Options designated as Incentive Stock Options are exercisable for the first time by
any Optionee during any calendar year (under all plans of the Company or any Parent or
Subsidiary) exceeds $100,000 (whether due to acceleration of exercisability, miscalculation
or error), such excess Options shall be treated as Nonstatutory Stock Options. In the event
that only a portion of the options granted at the same time can be applied to the $100,000
limit, the Company shall issue separate share certificate(s) for such number of shares as
does not exceed the $100,000 limit, and shall designate such shares as Incentive Stock
Options stock in its share transfer records.

     (c) For purposes of Section 5(b), Incentive Stock Options shall be taken into account
in the order in which they were granted, and the Fair Market Value of the Shares shall be
determined as of the time the Option with respect to such Shares is granted.

     (d) The Plan shall not confer upon any Optionee any right with respect to continuation
of employment or consulting relationship with the Company, nor shall it interfere in any way
with his right or the Company’s right to terminate his employment or consulting relationship
at any time, with or without cause.

     6. Term of Plan. Subject to any applicable law, the Plan shall continue in effect until
terminated pursuant to Section 19; provided, however, that no grants of Incentive Stock Options
shall be made under the Plan following the expiration of ten years from the original effective date
of the Plan.

     7. Term of Option. The term of each Option shall be the term stated in the Option Agreement;
provided, however, that in the case of an Incentive Stock Option, the term shall be no more than
ten (10) years from the date of grant thereof or such shorter term as may be provided in the Option
Agreement. In the case of an Incentive Stock Option granted to an Optionee who, at the time the
Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the
voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the
Incentive Stock Option shall be five (5) years from the date of grant thereof or such shorter term
as may be provided in the Option Agreement.

Exhibit “B”

Affiliated Computer Services, Inc.

1997 Stock Incentive Plan — Page 6 of 16

 

 

     8. Option Exercise Price and Consideration.

     (a) The per share exercise price for the Shares to be issued pursuant to exercise of an
Option shall be such price as is determined by the Board, but shall be subject to the
following:

     (i) In the case of an Incentive Stock Option

     (A) granted to an Employee who, at the time of the grant of such
Incentive Stock Option, owns stock representing more than ten percent (10%)
of the voting power of all classes of stock of the Company or any Parent or
Subsidiary, the per Share exercise price shall be no less than 110% of the
Fair Market Value per Share on the date of grant.

     (B) granted to any other Employee, the per Share exercise price shall
be no less than 100% of the Fair Market Value per Share on the date of
grant.

     (ii) In the case of a Nonstatutory Stock Option granted to any person, the per
Share exercise price shall be determined by the Administrator.

     (b) The consideration to be paid for the Shares to be issued upon exercise of an
Option, including the method of payment, shall be determined by the Administrator (and, in
the case of an Incentive Stock Option, shall be determined at the time of grant) and may
consist entirely of (1) cash, (2) check, (3) promissory note, (4) other Shares which (x) if
acquired upon exercise of an Option have been owned by the Optionee for more than six months
on the date of surrender or, if not acquired upon exercise of an Option, were not acquired,
directly or indirectly, from the Company, and (y) have a Fair Market Value on the date of
surrender equal to the aggregate exercise price of the Shares as to which said Option shall
be exercised, (5) authorization from the Company to retain from the total number of Shares
as to which the Option is exercised that number of Shares having a Fair Market Value on the
date of exercise equal to the exercise price for the total number of Shares as to which the
Option is exercised, (6) delivery of a properly executed exercise notice together with
irrevocable instructions to a broker to promptly deliver to the Company the amount of sale
or loan proceeds required to pay the exercise price, (7) delivery of an irrevocable
subscription agreement for the Shares which irrevocably obligates the Optionee to take and
pay for the Shares not more than twelve months after the date of delivery of the
subscription agreement, (8) any combination of the foregoing methods of payment, or (9) such
other consideration and method of payment for the issuance of Shares to the extent permitted
under Applicable Laws. In making its determination as to the type of consideration to
accept, the Administrator shall consider if acceptance of such consideration may be
reasonably expected to benefit the Company.

     9. Exercise of Option.

     (a) Procedure for Exercise: Rights as a Shareholder. Any Option granted hereunder
shall be exercisable at such times and under such conditions as determined by the
Administrator, including performance criteria with respect to the Company and/or the
Optionee, and as shall be permissible under the terms of the Plan.

     An Option may not be exercised for a fraction of a Share.

Exhibit “B”

Affiliated Computer Services, Inc.

1997 Stock Incentive Plan — Page 7 of 16

 

 

     An Option shall be deemed to be exercised when written notice of such exercise has been
given to the Company in accordance with the terms of the Option by the person entitled to
exercise the Option and full payment for the Shares with respect to which the Option is
exercised has been received by the Company. Full payment may, as authorized by the
Administrator, consist of any consideration and method of payment allowable under Section
8(b) of the Plan. Until the issuance (as evidenced by the appropriate entry on the books of
the Company or of a duly authorized transfer agent of the Company) of the stock certificate
evidencing such Shares, no right to vote or receive dividends or any other rights as a
shareholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of
the Option. The Company shall issue (or cause to be issued) such stock certificate promptly
upon exercise of the Option. No adjustment will be made for a dividend or other right for
which the record date is prior to the date the stock certificate is issued, except as
provided in Section 10 of the Plan.

     Exercise of an Option in any manner shall result in a decrease in the number of Shares
which thereafter may be available, both for purposes of the Plan and for sale under the
Option, by the number of Shares as to which the Option is exercised.

     (b) Termination of Employment. In the event of termination of an Optionee’s consulting
relationship, Continuous Status as an Employee or status as a Non-Employee Director of the
Company, such Optionee may, subject to Section 9(g) below, exercise vested Options that are
not Incentive Stock Options to the extent and subject to the provisions set out in
Optionee’s Notice of Grant and Stock Option Agreement. In the case of an Incentive Stock
Option, such Option may be exercised only within sixty (60) days (or such other period of
time as is determined by the Administrator, with such determination being made at the time
of grant of the Option and not exceeding ninety (90) days) after the date of such
termination (but in no event later than the expiration date of the term of such Option as
set forth in the Option Agreement), and only to the extent that Optionee was entitled to
exercise it at the date of such termination. To the extent that Optionee was not entitled to
exercise an Incentive Stock Option at the date of such termination, or if Optionee does not
exercise such Option to the extent so entitled under the Option Agreement within the time
specified herein, the Option shall terminate.

     (c) Disability of Optionee. Notwithstanding the provisions of Section 9(b) above, in
the case of an Incentive Stock Option, in the event of termination of an Optionee’s
Continuous Status as an Employee as a result of his total and permanent disability (as
defined in Section 22(e)(3) of the Code), Optionee may, but only within twelve (12) months
from the date of such termination (but in no event later than the expiration date of the
term of such Option as set forth in the Option Agreement), exercise an Incentive Stock
Option to the extent otherwise entitled to exercise it at the date of such termination. To
the extent that Optionee was not entitled to exercise an Incentive Stock Option at the date
of termination, or if Optionee does not exercise such Incentive Stock Option to the extent
so entitled within the time specified herein, the Incentive Stock Option shall terminate.
However, the twelve (12) month limitation set out in this paragraph shall not apply to limit
the exercise period set out in the Stock Option Agreement in the case of any Nonstatutory
Stock Option.

     (d) Death of Optionee. In the event of the death of an Optionee, the Option may be
exercised, according to its terms, by the Optionee’s estate or by a person who acquired the
right to exercise the Option by bequest or inheritance, but only to the extent the Option
was vested at the

Exhibit “B”

Affiliated Computer Services, Inc.

1997 Stock Incentive Plan — Page 8 of 16

 

 

date of death. To the extent the Option was unvested at the date of death, such unvested
portion of the Option shall terminate.

     (e) Rule 16b-3. Options granted to persons subject to Section 16(b) of the Exchange
Act must comply with Rule 16b-3 and shall contain such additional conditions or restrictions
as may be required thereunder to qualify for the maximum exemption from Section 16 of the
Exchange Act with respect to Plan transactions.

     (f) Buyout Provisions. The Administrator may at any time offer to buy out for a
payment in cash or Shares, an Option previously granted, based on such terms and conditions
as the Administrator shall establish and communicate to the Optionee at the time that such
offer is made.

     (g) Termination for Cause. Notwithstanding subsections (b), (c) and (d) of this
Section 9, any Optionee whose consulting relationship, Continuous Status as an Employee or
status as a Non-Employee Director is terminated by the Company for Cause shall forfeit all
Options granted under this Plan, whether or not vested. For purposes of this Plan, an
Optionee shall be deemed to have been terminated for Cause if the Optionee commits an act of
gross negligence or willful misconduct, including, but not limited to, a dereliction of duty
or the committing of and conviction for a crime involving breach of fiduciary duty to an
employer, a felony or a crime involving moral turpitude.

     (h) Reload Options. In the event a person who is an employee of the Company or a
Subsidiary shall exercise an Option (the “Original Option”) by paying all or a portion of
the Exercise Price of the shares of Common Stock subject to the Original Option by tendering
to the Company shares of Common Stock owned by such person, an Option to purchase the number
of shares of Common Stock used for such purpose by the employee (the “Reload Option”) shall
be granted to the employee as of the exercise date; provided that a Reload Option has been
granted to such Optionee with respect to such Option, as evidenced in his written option
agreement. The Reload Option may be exercised at any time during the term of the Original
Option, under such terms and conditions, and subject to such limitations, if any, as may be
placed on such exercisability in the Agreement.

     10. Vesting of Options in Certain Events.

     (a) If the Company undergoes a Change of Control, then all of the outstanding Options
held by any Optionee, whether or not such Options are vested at such time, shall become
vested and exercisable, effective the day immediately prior to such Change of Control. For
purposes of the preceding sentence, a “Change of Control” shall have occurred if the Company
is merged, consolidated, or reorganized into or with another person, entity, or group of
entities under common control or if a majority of the outstanding capital stock or all or
substantially all of the assets of the Company are sold to any other person, entity, or
group of entities under common control and as a result of such merger, consolidation,
reorganization, or sale of capital stock or assets, more than 51% of the combined voting
power of the then outstanding voting securities of the surviving person or entity
immediately after such transaction are held in the aggregate by a person, entity or group of
entities under common control who beneficially owned less than 51% of the combined voting
power of the Company prior to such transaction.

Exhibit “B”

Affiliated Computer Services, Inc.

1997 Stock Incentive Plan — Page 9 of 16

 

 

     (b) The Administrator shall, with respect to any participant under the Plan who has a
Severance Agreement with the Company, and in its discretion may, with respect to any other
participant under the Plan, include provisions similar to (a) above in the terms of an award
of Stock Purchase Rights, Stock Appreciation Rights, Restricted Stock, Deferred Stock, or
Dividend Equivalents hereunder.

     11. Non-transferability of Options. The Option may not be sold, pledged, assigned,
hypothecated, transferred, or disposed of in any manner other than by Will or by the laws of
descent or distribution and may be exercised, during the lifetime of the Optionee, only by the
Optionee.

     Notwithstanding the foregoing, Nonstatutory Options granted hereunder shall, with respect to
any Participant under the Plan who has a Severance Agreement with the Company, and may in the
discretion of the Administrator, with respect to any other participant, be granted on terms that
permit transfer without consideration of such Nonstatutory Options by Optionee to:

     (i) the spouse, children or grandchildren of the Optionee;

     (ii) a trust or Uniform Gifts to Minors Act custodial account for the exclusive benefit of the
child(ren) or grandchild(ren) of the Optionee; or

     (iii) a partnership or other entity in which the Optionee’s spouse, children and/or
grandchildren are the only partners,

and permit the pledge of such Nonstatutory Stock Options by an Optionee to the Company or a third
party, as security for indebtedness, provided that (A) the stock option agreement pursuant to which
such Nonstatutory Options are granted must be approved by the Administrator, and must, except with
respect to agreements with any Participant under the Plan who has a Severance Agreement with the
Company, expressly provide for transferability in a manner consistent with this Section, and (B)
subsequent transfers of transferred Options shall be prohibited except by will or the laws of
descent and distribution. Following transfer, any such Options shall continue to be subject to the
same terms and conditions as were applicable immediately prior to transfer, provided that for
purposes of each Agreement and Section 9 hereof the term “Optionee” shall be deemed to refer to the
transferee (however, the events of termination of employment specified in Sections 9(b), (c) or (d)
hereof shall continue to be applied with respect to the original Optionee). Except as set forth
above, Options may not be transferred except by will or the laws of descent and distribution.

     12. Stock Purchase Rights.

     (a) Rights to Purchase. Stock Purchase Rights may be issued either alone, in addition
to, or in tandem with other awards granted under the Plan and/or cash awards made outside of
the Plan. After the Administrator determines that it will offer Stock Purchase Rights under
the Plan, it shall advise the offeree in writing of the terms, conditions and restrictions
related to the offer, including the number of Shares that such person shall be entitled to
purchase, the price to be paid (which price shall be determined by the Administrator), and
the time within which such person must accept such offer, which shall in no event exceed
thirty (30) days from the date upon which the Administrator made the determination to grant
the Stock Purchase Right. The offer shall be accepted by execution of a Restricted Stock
purchase agreement in the form determined by the

Exhibit “B”

Affiliated Computer Services, Inc.

1997 Stock Incentive Plan — Page 10 of 16

 

 

Administrator. Shares purchased pursuant to the grant of a Stock Purchase Right shall be
referred to herein as “Restricted Stock”.

     (b) Repurchase Option. Unless the Administrator determines otherwise, the Restricted
Stock purchase agreement shall grant the Company a repurchase option exercisable upon the
voluntary or involuntary termination of the purchaser’s employment with the Company for any
reason (including death or Disability). The purchase price for Shares repurchased pursuant
to the Restricted Stock purchase agreement shall be the original price paid by the purchaser
and may be paid by cancellation of any indebtedness of the purchaser to the Company. The
repurchase option shall lapse at such rate as the Committee may determine.

     (c) Other Provisions. The Restricted Stock purchase agreement shall contain such other
terms, provisions and conditions not inconsistent with the Plan as may be determined by the
Administrator in its sole discretion. In addition, the provisions of Restricted Stock
purchase agreements need not be the same with respect to each purchaser.

     (d) Rights as a Shareholder. Once the Stock Purchase Right is exercised, the purchaser
shall have the rights equivalent to those of a shareholder when his or her purchase is
entered upon the records of the duly authorized transfer agent of the Company. No adjustment
will be made for a dividend or other right for which the record date is prior to the date
the Stock Purchase Right is exercised, except as provided in Section 16 of the Plan.

     13. Stock Appreciation Rights.

     The grant of Stock Appreciation Rights under the Plan shall be subject to the following terms
and conditions, and shall contain such additional terms and conditions, not inconsistent with the
express terms of the Plan, as the Committee shall deem desirable:

     (a) Stock Appreciation Rights. A Stock Appreciation Right is an Award entitling a
Participant to receive an amount equal to (or if the Committee shall determine at the time
of grant, less than) the excess of the Fair Market Value of a share of Common Stock on the
date of exercise over the Fair Market Value of a share of Common Stock on the date of grant
of the Stock Appreciation Right, or, in the case of a grant other than a Performance Based
Grant, such other price as may be set by the Committee, multiplied by the number of shares
of Common Stock with respect to which the Stock Appreciation Right shall have been
exercised.

     (b) Grant. A Stock Appreciation Right may be granted separately, or in tandem with
Options or other rights hereunder, whereby the exercise of one such Award affects the right
to exercise the other, subject to limitation under Code Section 422 with respect to
Incentive Stock Options.

     (c) Exercise. A Stock Appreciation Right may be exercised by a Participant in
accordance with procedures established by the Committee, except that in no event shall a
Stock Appreciation Right be exercisable prior to the first Anniversary Date of the date of
grant. The Committee shall establish procedures to provide that, with respect to any
Participant subject to Section 16(b) of the Exchange Act who would receive cash in whole or
in part upon exercise of the Stock Appreciation Right, such exercise may only occur during
an exercise period beginning on the third business day following the Company’s public
release of quarterly or annual summary

Exhibit “B”

Affiliated Computer Services, Inc.

1997 Stock Incentive Plan — Page 11 of 16

 

 

statements of sales and earnings and ending on the last day of the month following the month
in which such public release occurred or during such other period as the Administrator may
provide. To the extent it is not inconsistent with the preceding sentence, the Committee, in
its discretion, may provide that a Stock Appreciation Right shall be automatically exercised
on one or more specified dates, or that a Stock Appreciation Right may be exercised during
only limited time periods.

     (d) Form of Payment. Payment to the Participant upon exercise of a Stock Appreciation
Right may be made (i) in cash, by certified or cashier’s check or by money order, (ii) in
shares of Common Stock, (iii) in the form of a Deferred Compensation Stock Option, or (iv)
any combination of the above, as the Committee shall determine. The Committee may elect to
make this determination either at the time the Stock Appreciation Right is granted, or with
respect to payments contemplated in clauses (i) and (ii) above, at the time of the exercise.

     14. Restricted Stock.

     Restricted Stock Grants may be made to Employees, Non-Employee Directors and Consultants under
the Plan. Restricted Stock Grants shall be subject to the following terms and conditions, and may
contain such additional terms and conditions, not inconsistent with the express provisions of the
Plan, as the Committee shall deem desirable:

     (a) Restricted Stock Grants. A Restricted Stock Grant is an award of shares of Common
Stock transferred to a Participant subject to such terms and conditions as the Administrator
deems appropriate, including, without limitation, the requirement that the Participant
forfeit such units upon termination of employment for specified reasons within a specified
period of time, and restrictions on the sale, assignment, transfer or other disposition of
the units as set forth in (c) below. Further, as a condition to the grant of Restricted
Stock to any Participant who, at the date of grant has not been employed by the Company and
has not performed services for the Company, the Administrator shall require such Participant
to pay at least an amount equal to the par value of the shares of Common Stock subject to
the Restricted Stock Grant within 30 days of the date of the grant, and failure to pay such
amount shall result in an automatic termination of the Restricted Stock Grant.

     (b) Grant of Awards. Restricted Stock Grants shall be granted under the Plan in such
form and on such terms and conditions as the Administrator may from time to time approve.
Subject to the terms of the Plan, the Administrator shall determine the number of Restricted
Stock Grants to be granted to a Participant and the Administrator may impose different terms
and conditions on any particular Restricted Award made to any Participant. Each Participant
receiving a Restricted Stock Grant shall be issued a stock certificate in respect of the
shares of Common Stock. The certificate shall be registered in the name of the Participant,
shall be accompanied by a stock power duly executed by the Participant, and shall bear an
appropriate legend referring to the terms, conditions and restrictions applicable to the
Award. The certificate evidencing the shares shall be held in custody by the Company until
the restrictions imposed thereon shall have lapsed or been removed.

     (c) Restriction Period. Restricted Awards shall provide that in order for a
Participant to vest in the Awards, the Participant must continuously provide services for
the Company or its Subsidiaries, subject to relief for specified reasons established by the
Administrator in the terms of

Exhibit “B”

Affiliated Computer Services, Inc.

1997 Stock Incentive Plan — Page 12 of 16

 

 

the grant, such as disability or a Change of Control, for a period commencing on the date of
the Award and ending on such later date or dates as the Administrator may designate at the
time of the Award, provided that the Administrator determines that such period is adequate
to result in a substantial risk of forfeiture under Code Section 83(a) (“Restriction
Period”). During the Restriction Period, a Participant may not sell, assign, transfer,
pledge, encumber, or otherwise dispose of shares of Common Stock received under a Restricted
Stock Grant. The Administrator, in its sole discretion, may provide for the lapse of
restrictions in installments during the Restriction Period. Upon expiration of the
applicable Restriction Period (or lapse of restrictions during the Restriction Period where
the restrictions lapse in installments), the Participant shall be entitled to receive his or
her Restricted Award or the applicable portion thereof, as the case may be.

     (d) Rights as a Shareholder. Except as provided above, a Participant shall have, with
respect to the shares of Common Stock received under a Restricted Stock Grant, all of the
rights of a shareholder of the Company, including the right to vote the shares, and the
right to receive any cash dividends. Stock dividends issued with respect to the shares
covered by a Restricted Stock Grant shall be treated as additional shares under the
Restricted Stock Grant and shall be subject to the same restrictions and other terms and
conditions that apply to shares under the Restricted Stock Grant with respect to which the
dividends are issued.

     15. Other Equity Based Rights.

     (a) Deferred Stock. The Administrator is authorized to grant Deferred Stock to
Participants, subject to the following terms and conditions:

     (i) Award and Restrictions. Delivery of Shares will occur upon expiration of
the deferral period specified for Deferred Stock by the Administrator (or, if
permitted by the Administrator, as elected by the Participant). Prior to delivery of
the Deferred Stock, the Participant shall not have any of the rights of a
Shareholder and shall have the status of an unsecured creditor having the Company’s
mere contractual obligation to deliver Shares at a later date. In addition, Deferred
Stock shall be subject to such restrictions as the Administrator may impose, which
restrictions may lapse at the expiration of the deferral period or at earlier
specified times, separately or in combination, in installments, or otherwise, as the
Administrator shall determine.

     (ii) Forfeiture. Except as otherwise determined by the Administrator, upon
termination of employment (as determined under criteria established by the
Administrator) during the applicable deferral period or portion thereof (as provided
in the Award Agreement evidencing Deferred Stock), all Deferred Stock that is at
that time subject to deferral (other than a deferral at the election of the
Participant) shall be forfeited; provided, however, that the Administrator may
provide, by rule or regulation or in any Award Agreement, or may determine in any
individual case, that restrictions or forfeiture conditions relating to Deferred
Stock will be waived in whole or in part in the event of terminations resulting from
specified causes.

     (iii) Deferred Stock awards shall be made only if the Administrator determines
that any applicable requirements of the Code (pertaining to deferral of taxation),
the Employee Retirement Income Security Act of 1974, as amended, Rule 16b-3, and
other

Exhibit “B”

Affiliated Computer Services, Inc.

1997 Stock Incentive Plan — Page 13 of 16

 

 

pertinent statutes, rules and regulations have been complied with, and such awards
shall be subject to all additional terms, conditions and restrictions necessary to
comply therewith.

     (b) Dividend Equivalents. The Administrator is authorized to grant Dividend
Equivalents to Participants. The Administrator may provide that Dividend Equivalents shall
be paid or distributed when accrued or shall be deemed to have been reinvested in additional
Shares or Awards, or otherwise reinvested.

     16. Stock Withholding to Satisfy Withholding Tax Obligations. At the discretion of the
Administrator, Optionees may satisfy withholding obligations as provided in this paragraph. When an
Optionee incurs tax liability in connection with an Option or Stock Purchase Right, which tax
liability is subject to tax withholding under applicable tax laws, and the Optionee is obligated to
pay the Company an amount required to be withheld under applicable tax laws, the Optionee may
satisfy the withholding tax obligation by electing to have the Company withhold from the Shares to
be issued upon exercise of the Option, or the Shares to be issued in connection with the Stock
Purchase Right, if any, that number of Shares having a Fair Market Value equal to the amount
required to be withheld. The Fair Market Value of the Shares to be withheld shall be determined on
the date that the amount of tax to be withheld is to be determined (the “Tax Date”).

     All elections by an Optionee to have Shares withheld for this purpose shall be made in writing
in a form acceptable to the Administrator and shall be subject to the following restrictions:

     (a) the election must be made on or prior to the applicable Tax Date;

     (b) once made, the election shall be irrevocable as to the particular Shares of
the Option or Right as to which the election is made;

     (c) all elections shall be subject to the consent or disapproval of the
Administrator;

     (d) if the Optionee is subject to Rule 16b-3, the election must comply with the
applicable provisions of Rule 16b-3 and shall be subject to such additional
conditions or restrictions as may be required thereunder to qualify for the maximum
exemption from Section 16 of the Exchange Act with respect to Plan transactions.

     In the event the election to have Shares withheld is made by an Optionee and
the Tax Date is deferred under Section 83 of the Code because no election is filed
under Section 83(b) of the Code, the Optionee shall receive the full number of
Shares with respect to which the Option or Stock Purchase Right is exercised but
such Optionee shall be unconditionally obligated to tender back to the Company the
proper number of Shares on the Tax Date.

     17. Adjustments upon Changes in Capitalization or Merger. Subject to any required action by
the shareholders of the Company, the number of shares of Common Stock covered by each outstanding
Option, and the number of shares of Common Stock which have been authorized for issuance under the
Plan but as to which no Options have yet been granted or which have been returned to the Plan upon
cancellation or expiration of an Option, as well as the price per share of Common Stock covered by
each such outstanding Option, shall be proportionately adjusted for any increase or decrease in the
number of issued

Exhibit “B”

Affiliated Computer Services, Inc.

1997 Stock Incentive Plan — Page 14 of 16

 

 

shares of Common Stock resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock, or any other increase or decrease in the
number of issued shares of Common Stock effected without receipt of consideration by the Company;
provided, however, that conversion of any convertible securities of the Company shall not be deemed
to have been “effected without receipt of consideration.” Such adjustment shall be made by the
Board, whose determination in that respect shall be final, binding and conclusive. Except as
expressly provided herein, no issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no adjustment by reason
thereof shall be made with respect to, the number or price of shares of Common Stock subject to an
Option.

     In the event of the proposed dissolution or liquidation of the Company, the Board shall notify
the Optionee at least fifteen (15) days prior to such proposed action. To the extent it has not
been previously exercised, the Option will terminate immediately prior to the consummation of such
proposed action. In the event of a merger of the Company with or into another corporation, the
Option shall be assumed or an equivalent option shall be substituted by such successor corporation
or a parent or subsidiary of such successor corporation. In the event that such successor
corporation does not agree to assume the Option or to substitute an equivalent option, the Board
may, in lieu of such assumption or substitution, provide for the Optionee to have the right to
exercise the Option as to all of the Optioned Stock, including Shares as to which the Option would
not otherwise be exercisable. If the Board makes an Option fully exercisable in lieu of such
assumption or substitution in the event of a merger, the Board shall notify the Optionee that the
Option shall be fully exercisable for a period of fifteen (15) days from the date of such notice,
and the Option will terminate upon the expiration of such period.

     18. Time of Granting Options. The date of grant of an Option shall, for all purposes, be the
date on which the Administrator makes the determination granting such Option, or such other date as
is determined by the Administrator. Notice of the determination shall be given to each Employee,
Consultant or Non- Employee Director to whom an Option is so granted within a reasonable time after
the date of such grant.

     19. Amendment and Termination of the Plan.

     (a) Amendment and Termination. The Board may at any time amend, alter, suspend or
discontinue the Plan, but no amendment, alteration, suspension or discontinuation shall be
made which would impair the material rights of any Optionee under any grant theretofore
made, without his or her consent. In addition, to the extent necessary and desirable to
comply [with Rule 16b-3 under the Exchange Act or] with Sections 162(m) or 422 of the Code
(or any other applicable law or regulation, including the requirements of the NYSE or other
established stock exchange), the Company shall obtain shareholder approval of any Plan
amendment in such a manner and to such a degree as required.

     (b) Effect of Amendment or Termination. Any such amendment or termination of the Plan
shall not affect Options already granted and such Options shall remain in full force and
effect as if this Plan had not been amended or terminated, unless mutually agreed otherwise
between the Optionee and the Board, which agreement must be in writing and signed by the
Optionee and the Company.

     20. Conditions upon Issuance of Shares. Shares shall not be issued pursuant to the exercise
of an Option unless the exercise of such Option and the issuance and delivery of such Shares
pursuant thereto

Exhibit “B”

Affiliated Computer Services, Inc.

1997 Stock Incentive Plan — Page 15 of 16

 

 

shall comply with all relevant provisions of law, including, without limitation, the Securities Act
of 1933, as amended, the Exchange Act, as amended, the rules and regulations promulgated
thereunder, and the requirements of any stock exchange upon which the Shares may then be listed,
and shall be further subject to the approval of counsel for the Company with respect to such
compliance.

     As a condition to the exercise of an Option, the Company may require the person exercising
such Option to represent and warrant at the time of any such exercise that the Shares are being
purchased only for investment and without any present intention to sell or distribute such Shares
if, in the opinion of counsel for the Company, such a representation is required by any of the
aforementioned relevant provisions of law. To the extent required under Code Section 162(m)(4)(C),
Performance Based Grants made hereunder with respect to any “covered employee” are subject to
stockholder approval of material provisions of the Plan.

     21. Reservation of Shares. The Company, during the term of this Plan, will at all times
reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements
of the Plan. The inability of the Company to obtain authority from any regulatory body having
jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful
issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of
the failure to issue or sell such Shares as to which such requisite authority shall not have been
obtained.

     22. Agreements. Options, Stock Purchase Rights, Stock Appreciation Rights, Deferred Stock,
Restricted Stock and Dividend Equivalents shall be evidenced by written agreements or award
documents in such form as the Administrator shall approve from time to time.

Exhibit “B”

Affiliated Computer Services, Inc.

1997 Stock Incentive Plan – Page 16 of 16

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