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Exhibit 10.11  

AGREED
FORM 

Dated
[    •    ] 2005 

	(1)
	[THE P.I. TRUSTEES]

	(2)
	[WATSON WYATT LLP]

	(3)
	WATSON WYATT LIMITED

	(4)
	WATSON WYATT & COMPANY HOLDINGS

	
PI CLAIMS DEED

MAYER

BROWN

ROWE

& MAW 

LONDON

 
 

CONTENTS    
    

	Clause
 
	 	 
	 	Page

	1.	 	Interpretation	 	1
	2.	 	Procurement of P.I. Insurance	 	2
	3.	 	P.I. Budget	 	3
	4.	 	Arrangements after end of Initial P.I. Period	 	4
	5.	 	Actuarially Adjusted Budget	 	4
	6.	 	P.I. Trust	 	5
	7.	 	Claims Handling	 	6
	8.	 	Expert Determination	 	7
	9.	 	Confidentiality	 	8
	10.	 	Notices	 	8
	11.	 	Third Party Rights	 	9
	12.	 	Variation, Waiver and Consent	 	9
	13.	 	Severability	 	9
	14.	 	Counterparts	 	9
	15.	 	Governing Law and Submission to Jurisdiction	 	9

   THIS DEED is dated [    •    ] and made between: 

	(1)	 	[•], [•] (together the "P.I. Trustees");
	

(2)	
 	
WATSON WYATT LLP a limited liability partnership incorporated under the laws of England and Wales with registered number OC301975 and having its registered office and its principal place of
business at Watson House, London Road, Reigate, Surrey RH2 9PQ ("WWLLP")
	

(3)	
 	
WATSON WYATT LIMITED a company incorporated under the laws of England and Wales with registered number 5379716 and having its registered office at 100 New Bridge Street, London EC4V 6JA
("WWL"); and
	

(4)	
 	
WATSON WYATT & COMPANY HOLDINGS a company organised and subsisting under the laws of the State of Delaware, USA, whose principal place of business is at 1717th Street, N.W.,
 Suite 800, Washington D.C. 20006, USA ("WWCH").
	
BACKGROUND:
	

(A)	
 	

On [•] 2005, Watson Wyatt (UK) Acquisitions 2 Limited ("WW2"), The Wyatt Company Holdings Limited ("WCHL"), WWCH and WWLLP entered into a business
transfer agreement pursuant to which WWLLP sold its assets and business to WW2 (the "BTA").
	

(B)	
 	

The parties to this Deed have agreed that, in order to preserve the goodwill of the Continuing Business, arrangements be put in place regarding professional indemnity insurance cover in respect of the Business as carried on before
Completion.
	
IT IS AGREED that:
	

1.	
 	

INTERPRETATION
 
	

1.1	
 	

Definitions
	

 	
 	

In this Deed, the following words and expressions shall have the following meanings:
	

 	
 	
"Actuarially Adjusted Budget" means the budget calculated in accordance with Clause 5;
	

 	
 	
"Annual P.I. Budget" means for the First P.I. Year the sum agreed by the parties, and thereafter adjusted in accordance with Clause 3;
	

 	
 	
"Initial P.I. Period" means the period of three years commencing on 1 July 2005;
	

 	
 	
"P.I. Renewal Date" means 1 July each year;
	

 	
 	
"P.I. Year" means a period of 12 months commencing on the P.I. Renewal Date, and "First P.I. Year" means the period of 12 months
commencing on 1 July 2005, "Second P.I. Year" means the period of 12 months commencing on 1 July 2006 and "Third P.I. Year" means the period
of 12 months commencing on 1 July 2007;
	

 	
 	
"Post Completion Policies" means the Initial Post Completion Policy (as defined in Clause 2.2) together with the Additional Post Completion Policies (as defined in Clause 4)
;
	

 	
 	
"Professional Liability Claims" means claims, whether in contract, tort or otherwise, arising out of or in connection with the accuracy, standard, quality or appropriateness of advice given or
services provided, or any failure to provide appropriate advice or services where such failure amounts to an omission for professional liability purposes;
	

 	
 	
"Revenue" means gross revenue; and
	

 	
 	
"Self Insured Excess" means the excess applicable to any Post Completion Policies purchased pursuant to this Deed.
	 	 	 	 	 	 	 

1

 

	

1.2	
 	

Recitals, etc
	

 	
 	

References to this Deed include the recitals which form part of this Deed for all purposes. References in this Deed to the parties, the recitals and clauses are references respectively to the parties and their legal personal representatives and
successors, the recitals to and clauses of this Deed.
	

1.3	
 	

Meaning of references.
	

 	
 	

Save where specifically required or indicated otherwise:
	

 	
 	

(a)	
 	

words importing one gender shall be treated as importing any gender, words importing individuals shall be treated as importing corporations and vice versa and words importing the singular shall be treated as importing the plural and vice
versa;
	

 	
 	

(b)	
 	

references to a person shall include any individual, firm, body corporate, unincorporated association, government, state or agency of state, association, joint venture or partnership, in each case whether or not having a separate legal personality.
References to a company shall be construed so as to include any company, corporation or other body corporate wherever and however incorporated or established; and
	

 	
 	

(c)	
 	

terms used in this Deed shall have the meanings attributed to them in the BTA, unless otherwise provided in this Deed.
	

1.4	
 	

Headings
	

 	
 	

Clause and paragraph headings and the table of contents are inserted for ease of reference only and shall not affect construction.
	

2.	
 	

PROCUREMENT OF P.I. INSURANCE
	

2.1	
 	

WWCH and WWL undertake to [the P.I. Trustees][WWLLP] to procure that WWC shall use efforts, consistent with those employed by WWC prior to Completion, to maintain and pay for such errors and omissions insurance coverage for WWC and the Purchaser's
Group (other than WWL and its subsidiaries) as WWC reasonably determines to be commercially available and appropriate.
	

2.2	
 	

During the Initial P.I. Period, WWL will (save to the extent that commercial insurance for claims has already been obtained prior to the Completion Date in respect of the First P.I. Year) use efforts, consistent with those employed by WWLLP prior to
Completion in relation to the professional indemnity insurance affairs of WWLLP, WWP or any of the Partners or Former Partners ("Efforts"), to obtain commercial insurance, on terms substantially similar
to, and of a quality similar to, that held by WWLLP at the date of this Deed, for Professional Liability Claims made after Completion against WWL or any of its subsidiaries, WWLLP, WWP or any of the Partners or Former Partners (the "Initial Post-Completion Policy").
	

2.3	
 	

WWL shall commence its Efforts to obtain the Initial Post-Completion Policy for the First P.I. Year immediately upon execution of this Deed and, for the Second and Third P.I. Years, no later than the date which is 60 Business Days prior to the
relevant P.I. Renewal Date. In each P.I. Year WWL shall only be obliged to use Efforts to purchase as much insurance as can be acquired for a sum equal to the Annual P.I. Budget, after deducting the amount required in the relevant P.I. Year to
appropriately fund the Self Insured Excess.
	

2.4	
 	

The Self Insured Excess shall be fully provided for by WWL each year from the Annual P.I. Budget and shall respond to Professional Liability Claims against WWLLP, WWP, the Partners and Former Partners, as well as WWL and its subsidiaries.

2

 

	

3.	
 	

P.I. BUDGET
	

3.1	
 	

The Annual P.I. Budget for the First P.I. Year shall be an amount as agreed by the parties.
	

3.2	
 	

The Annual P.I. Budget for the Second P.I. Year shall be such amount as is equal to the Annual P.I. Budget for the First P.I. Year multiplied by X, where:
	

 	
 	

X=	
 	

 
	

 	
 	

Y=	
 	

the Revenue of WWL and the Relevant Associated Companies in respect of the Continuing Business for the Financial Year ended on 30 June 2006, as shown in the management accounts of WWL and the Relevant Associated Companies (provided that if
Completion occurs on or after 1 July 2005, the Revenue of WWL and the Relevant Associated Companies shall be deemed to include the Revenue of WWLLP and the other members of the Seller's Group in respect of the Business for the period from 1
July 2005 to Completion);
	

 	
 	

Z=	
 	

the Revenue of WWLLP and the other members of the Seller's Group in respect of the Business and, if relevant, WWL and the Relevant Associated Companies in respect of the Business and the Continuing Business for the Financial Year ended on 30
June 2005, as shown in the management accounts of WWLLP, WWL and the Relevant Associated Companies.
	

3.3	
 	

The Annual P.I. Budget for the Third P.I. Year shall be such amount as is equal to the Annual P.I. Budget for the Second P.I. Year multiplied by A, where:
	

 	
 	

A=	
 	

 
	

 	
 	

B=	
 	

the Revenue of WWL and the Relevant Associated Companies in respect of the Continuing Business for the Financial Year ended on 30 June 2007, as shown in the management accounts of WWL and the Relevant Associated Companies;
	

 	
 	

C=	
 	

the Revenue of WWL and the Relevant Associated Companies in respect of the Continuing Business for the Financial Year ended on 30 June 2006, as shown in the management accounts of WWL and the Relevant Associated Companies (provided that if
Completion occurs on or after 1 July 2005, the Revenue of WWL and the Relevant Associated Companies shall be deemed to include the Revenue of WWLLP and the other members of the Seller's Group in respect of the Business for the period from 1
July 2005 to Completion).
	

3.4	
 	

WWL shall prepare and deliver a calculation of the Annual P.I. Budget for the Second P.I. Year and the Third P.I. Year, to [WWLLP] as soon as practicable following 30 June in the First P.I. Year and the Second P.I. Year respectively, but in any event
within 30 Business Days after such date.
	

3.5	
 	

[WWLLP] will have a period of 15 Business Days (the "P.I. Agreement Period") in which to review and agree or dispute WWL's calculation of the Annual P.I. Budget.
	

3.6	
 	

WWL's determination of the Annual P.I. Budget will be deemed to constitute the final and binding Annual P.I. Budget for the relevant P.I. Year unless [WWLLP] serves a notice on WWL within the P.I. Agreement Period disputing the amount so
determined.
	

3.7	
 	

In the event that [WWLLP] serves a notice disputing WWL's calculation of the Annual P.I. Budget within the P.I. Agreement Period then, unless WWL and [WWLLP] have resolved the disputed matter within a further five Business Days after the date of such
notice, either WWL or [WWLLP] may refer the matter for determination in accordance with Clause 8.
	 	 	 	 	 	 	 

3

 

	

4.	
 	

ARRANGEMENTS AFTER END OF INITIAL P.I. PERIOD
	

4.1	
 	

No later than six months prior to the expiry of the Initial P.I. Period a committee consisting of three representatives of WWLLP (the "P.I. Committee") shall meet with WWL to discuss their respective
proposals for dealing with the insurance requirements of WWLLP, WWP, the Former Partners and the Partners in respect of Professional Liability Claims following the expiry of the Initial P.I. Period. In the event that all or any of the initial
representatives chosen by WWLLP are unwilling or unable to serve on the P.I. Committee, WWLLP shall be entitled to appoint alternates in their place.
	

4.2	
 	

The P.I. Committee and WWL shall discuss their respective proposals and shall negotiate in good faith with a view to agreeing an appropriate course of action in respect of the insurance requirements referred to in Clause 4.1. If the P.I.
Committee and WWL are unable to agree on appropriate steps in respect of such insurance requirements, WWL shall use Efforts to purchase annual commercial insurance, on terms substantially similar to, and of a quality similar to, that held by WWLLP at
the date of this Deed, for Professional Liability Claims made after the Initial P.I. Period against WWLLP, WWP, the IFS Subsidiaries, the Former Partners or the Partners (the "Additional Post-Completion
Policies").
	

4.3	
 	

WWL shall only be obliged to use Efforts in respect of each of the nine P.I. Years following expiry of the Initial P.I. Period to purchase as much insurance for such year as can be acquired for a sum equal to the Actuarially Adjusted Budget, after
deducting such amount as the P.I. Committee direct to appropriately fund the Self Insured Excess (the "Self Insured Deduction"). The Self Insured Deduction shall be paid into the P.I. Trust (as defined
below) and held in accordance with Clause 6.
	

4.4	
 	

The P.I. Committee and WWL shall continue to meet no less than once every year to discuss their respective proposals and to negotiate in good faith with a view to agreeing an appropriate course of action in respect of the insurance requirements
referred to in Clause 4.1. In the absence of such agreement, WWL's obligation to use Efforts to purchase annual commercial insurance set out in Clause 4.2 shall continue in effect, in respect of the nine P.I. Years following expiry of the
Initial P.I. Period, until the 12th anniversary of the first day of the Initial P.I. Period.
	

5.	
 	

ACTUARIALLY ADJUSTED BUDGET
	

5.1	
 	

[The parties] shall produce an actuarially adjusted budget for each of the nine P.I. Years after the Third P.I. Year in accordance with this Clause 5. It shall be calculated by first determining what the Annual P.I. Budget would have been for
the relevant P.I. Year calculated using the same methodology as used in Clauses 3.2 and 3.3 (as adjusted by reference to the appropriate Financial Years) (the "Assumed P.I. Budget") and by then
apportioning the Assumed P.I. Budget between (1) the Additional Post-Completion Policies and (2) WWL's own P.I. insurance policies. Such apportionment will be determined on an actuarial basis taking into account the Professional Liability
Claims history of, on the one hand, the Business as conducted prior to the Completion Date and, on the other hand, the Continuing Business as conducted since the Completion Date. The actuarial basis to be used will be consistent with that used by
WWLLP when calculating the P.I. IBNR claims as reported to the Commission (in a document entitled 'Watson Wyatt LLP—IBNR professional liability claims') and by Milliman when calculating WWC's P.I. IBNR claims for accounting purposes (in a
document entitled 'RE: Analysis of "Tail" Liability', dated 19 July 2004), except that:
	

 	
 	

(a)	
 	

the date of loss will be defined as the average date of the advice giving rise to the loss;
	

 	
 	

(b)	
 	

all claims will be included in the calculations and not just those that are 'reasonably estimable';
	 	 	 	 	 	 	 

4

 

	

 	
 	

(c)	
 	

allowance will be made for the typical limits of liability applicable in each year of coverage.
	

 	
 	

Such part of the Assumed P.I. Budget as shall be so apportioned to the Additional Post-Completion Policies for the relevant P.I. Year shall be the "Actuarially Adjusted Budget".
	

5.2	
 	

WWL shall prepare and deliver a calculation of the Actuarially Adjusted Budget in respect of each forthcoming P.I. Year to [WWLLP][the P.I. Trustees] no later than 10 Business Days prior to the expiry of the then current P.I. Year, the first
Actuarially Adjusted Budget to be delivered no later than 20 Business Days prior to the expiry of the Initial P.I. Period.
	

5.3	
 	

[WWLLP][the P.I. Trustees] will have a period of 20 Business Days (the "AAB Agreement Period") in which to review and agree or dispute WWL's calculation of the Actuarially Adjusted Budget.
	

5.4	
 	

WWL's determination of the Actuarially Adjusted Budget will be deemed to constitute the final and binding Actuarial Adjusted Budget unless [WWLLP][the P.I. Trustees] serve[s] a notice on WWL within the AAB Adjustment Period disputing the amount so
determined.
	

5.5	
 	

In the event that [WWLLP][the P.I. Trustees] serve[s] a notice disputing WWL's calculation of the Actuarially Adjusted Budget then, unless WWL and [WWLLP][the P.I. Trustees] have resolved the disputed matter within a further 15 Business Days after
the date of such notice, either WWL or [WWLLP][the P.I. Trustees] may refer the matter for determination in accordance with Clause 8, save that, for the purposes of this Clause 5, Clause 8 shall be deemed to be amended by replacing
references to "independent firm of accountants" with "independent firm of actuaries" and references to "the President for the time being of the Institute of Chartered Accountants in England and Wales" with "the President for the time being of the
Institute of Actuaries".
	

6.	
 	

P.I. TRUST
	

6.1	
 	

A trust (the "P.I. Trust") [will be][has been] established, which shall be funded in accordance with this Clause 6. The P.I. Trust [will be][was] established for certain purposes set forth in the
deed constituting the P.I. Trust that relate to any Professional Liability Claims covered by that deed (each, a "WWLLP P.I. Claim"). The P.I. Trustees will use efforts to obtain commercial insurance to
support these purposes.
	

6.2	
 	

The P.I. Trustees [will] include representatives of the Partners, the Former Partners and WWL.
	

6.3	
 	

WWL shall procure that:
	

 	
 	

(a)	
 	

any amount of the Initial P.I. Budget and/or the Actuarially Adjusted Budget that WWL has not been able to apply in buying Post—Completion Policies (having used its Efforts to do so in accordance with this Deed) are paid to the P.I. Trustees to
be held in the P.I. Trust no later than the date six months after the P.I. Renewal Date of the P.I. Year in question; and
	

 	
 	

(b)	
 	

any element of the Self Insured Excess that has been released from reserves which were made in respect of any claim against WWP, WWLLP, the IFS Subsidiaries or any or the Partners or Former Partners are paid to the P.I. Trustees to be held in the
P.I. Trust no later than 30 days after the end of the relevant P.I. Year in which they were released,
	

6.4	
 	

Subject to Clause 6.5 below, on the later to occur of:
	

 	
 	

(a)	
 	

the 12th anniversary of the first day of the Initial P.I. Period; and
	 	 	 	 	 	 	 

5

 

	

 	
 	

(b)	
 	

the date of settlement or final determination of all WWLLP P.I. Claims brought within the period of twelve years commencing on the first day of the Initial P.I. Period:
	

 	
 	

(c)	
 	

the P.I. Trust shall be wound up, and all sums held in trust shall be applied in the order set out below:
	

 	
 	

 	
 	

(i)	
 	

firstly in discharging any liability to any third party in relation to a WWLLP P.I. Claim, which has been previously settled or finally determined and which remains unpaid;
	

 	
 	

 	
 	

(ii)	
 	

secondly, the balance (if any) shall be shared between those Partners and Former Partners who have previously discharged a liability to any third party in relation to a WWLLP P.I. Claim. Such payment shall be made pro-rata according to the amount
discharged by the relevant Partner or Former Partner;
	

 	
 	

 	
 	

(iii)	
 	

lastly, the balance (if any) shall be paid to WWL.
	

6.5	
 	

Notwithstanding the provisions of Clause 6.4, within [one calendar month] of the 14th anniversary of the first day of the Initial P.I. Period, the P.I. Trustees shall meet with a representative of WWL to consider an appropriate course of action
to take in relation to any sums still held in the P.I. Trust. The P.I. Trustees may determine that some or all of the sums remaining in the P.I. Trust may be distributed, in which case the amount determined to be distributed shall be applied in the
order set out in Clause 6.4. In reaching their determination, the P.I. Trustees shall consider the following issues:
	

 	
 	

(a)	
 	

the amount still held in the P.I. Trust;
	

 	
 	

(b)	
 	

the nature and likely quantum of all unsettled and undetermined WWLLP P.I. Claims; and
	

 	
 	

(c)	
 	

suitable arrangements for the provision of security by WWL for any sums which the P.I. Trustees may determine should be paid out to WWL but which may need to be repaid in the event of adverse developments of WWLLP P.I. Claims.
	

7.	
 	

CLAIMS HANDLING
	

7.1	
 	

Unless notified by WWLLP in writing WWL shall, acting pursuant to WWLLP's directions in accordance with Clause 7.6, have responsibility for the management of all proceedings relating to a WWLLP P.I. Claim.
	

7.2	
 	

WWL shall (or shall procure that an appropriate member of the Purchaser's Group shall) employ and maintain a suitable level of qualified resources to manage WWLLP P.I. Claims, including for the avoidance of doubt claims existing at the Completion
Date.
	

7.3	
 	

For the purposes of Clause 7.2 a "suitable level of qualified resource" shall mean a level of qualified resource which is equivalent in all material respects to the resource employed by WWLLP in the handling of such claims at the date of the
BTA.
	

7.4	
 	

WWL undertakes that it shall procure that WWLLP P.I. Claims are handled in a manner consistent with the way in which Professional Liability Claims against the Purchaser's Group relating to the period after Completion ("Newco
Claims") are handled, which shall include:
	

 	
 	

(a)	
 	

devoting the same level of resource and attention to WWLLP P.I. Claims as are devoted to Newco Claims;
	

 	
 	

(b)	
 	

allocating the same level of priority to WWLLP P.I. Claims as are devoted to Newco Claims;
	

 	
 	

(c)	
 	

taking the same approach to settlement of WWLLP P.I. Claims (including approach, timing and method) as are devoted to Newco Claims; and
	 	 	 	 	 	 	 

6

 

	

 	
 	

(d)	
 	

handling claims without regard to division of responsibility between WWLLP, WWP, the Partners or Former Partners (on the one hand) and any member of the Purchaser's Group (on the other) for pre and post Completion acts, omissions or
events.
	

7.5	
 	

WWL shall provide reports on WWLLP P.I. Claims at no more than quarterly intervals, to [WWLLP][the P.I. Trustees]. Such reports shall include a summary of all matters of significance and material developments.
	

7.6	
 	

In connection with all WWLLP P.I. Claims WWL shall at the written request of [WWLLP][the P.I. Trustees]:
	

 	
 	

(a)	
 	

take such action as [WWLLP][the P.I. Trustees] may reasonably require to avoid, contest, dispute, resist, appeal, compromise or defend the WWLLP P.I. Claim (including making counter claims and exercising all rights of set off against third parties)
and will refrain (and will procure that all other members of the Purchaser's Group will refrain) from making or attempting to make any admission of liability, agreement, settlement or compromise in relation to a third party action without the consent
of [WWLLP][the P.I. Trustees] (that consent not to be unreasonably withheld or delayed); and
	

 	
 	

(b)	
 	

provide to [WWLLP][the P.I. Trustees]'s professional advisers reasonable access to information and to employees of WWL or any other member of the Purchaser's Group for the purpose of avoiding, contesting, disputing, resisting, appealing, compromising,
 defending or investigating the claim (subject always to keeping the same confidential).
	

7.7	
 	

 	
 	

WWL's obligations under this Clause 7 are subject to any obligations that WWL or the relevant member of the Purchaser's Group may have under any applicable policy of insurance.
	

8.	
 	

EXPERT DETERMINATION
	

 	
 	

If any difference of opinion arises between the parties in relation to any provision of this Deed in respect of which a party is expressed to have the right to refer such matter for determination pursuant to this Clause 8, subject to any time
period referred to in the relevant provision during which the parties must seek to resolve the dispute before referring it to an independent firm having expired, any party may refer the matter to an independent firm of accountants for resolution as
follows:
	

 	
 	

(a)	
 	

the independent firm shall be jointly agreed by the parties or, if no agreement is reached within 10 Business Days after any party notifies the others that it wishes to appoint a firm under this clause, shall be appointed at the request of any party
by the President for the time being of the Institute of Chartered Accountants in England and Wales;
	

 	
 	

(b)	
 	

the independent firm shall be requested to resolve the matter in dispute applying the terms of this Deed;
	

 	
 	

(c)	
 	

subject to any rule of law or of any regulatory body or any provision of any contract or arrangement entered into prior to the date of this Deed to the contrary, each of the parties will, upon request, provide to the other parties and to the
independent firm access to such premises, books, accounts, records, returns and other documents as are in its possession or control as may be required by the independent firm to make its determination;
	

 	
 	

(d)	
 	

the determination of the independent firm shall be final and binding on the parties in the absence of manifest error; and
	

 	
 	

(e)	
 	

the costs of the independent firm shall be apportioned as the independent firm determines and, in the absence of such determination, shall be shared by WWLLP and WWL equally.
	 	 	 	 	 	 	 

7

 

	

9.	
 	

CONFIDENTIALITY
	

 	
 	

Save to the extent required by law or by any securities exchange or any supervisory or regulatory body to whose rules any party to this Deed is subject, the parties agree to, and will procure that each of their respective subsidiaries, holding
companies or parent undertakings and any subsidiary of any such holding company or parent undertaking for the time being will keep this Deed confidential and no disclosure of nor reference to this Deed or its terms shall be made without the prior
written consent of each of the parties, which consent may not be unreasonably withheld.
	

10.	
 	

NOTICES
	

10.1	
 	

Save as otherwise provided in this Deed, any notice, demand or other communication ("Notice") to be given by any party under, or in connection with, this Deed shall be in writing and signed by or on
behalf of the party giving it. Any Notice shall be served by sending it by fax to the number set out in Clause 10.2, or delivering it by hand to the address set out in Clause 10.2 and in each case marked for the attention of the relevant
party set out in Clause 10.2 (or as otherwise notified from time to time in accordance with the provisions of this Clause 10). Any Notice so served by fax or hand shall be deemed to have been duly given or made as follows:
	

 	
 	

(a)	
 	

if sent by fax, at the time of transmission; or
	

 	
 	

(b)	
 	

in the case of delivery by hand, when delivered;
	

 	
 	

provided that in each case where delivery by fax or by hand occurs after 5pm on a Business Day or on a day which is not a Business Day, service shall be deemed to occur at 9am on the next following Business Day.
	

 	
 	

References to time in this clause are to local time in the country of the addressee.
	

10.2	
 	

The addresses and fax numbers of the parties for the purpose of Clause 10.1 are as follows:
	

 	
 	

(a)	
 	

The P.I. Trustees

Address: Watson House, London Road, Reigate, Surrey RH2 9PQ
	

 	
 	

 	
 	

Fax: 01737 241 496
	

 	
 	

 	
 	

For the attention of: [                        ]
	

 	
 	

(b)	
 	

WWLLP

Address: Watson House, London Road, Reigate, Surrey RH2 9PQ
	

 	
 	

 	
 	

Fax: 01737 241 496
	

 	
 	

 	
 	

For the attention of: Senior Partner
	

 	
 	

 	
 	

With a copy by fax to the Seller's Solicitor, fax number 020 7782 8760, marked for the attention of The Head of Corporate
	

 	
 	

(c)	
 	

WWL Address: 100 New Bridge Street, London, EC4V 6JA
	

 	
 	

 	
 	

Fax: 020 7919 1999
	

 	
 	

 	
 	

For the attention of: Company Secretary
	

 	
 	

 	
 	

With a copy by fax to: WWCH General Counsel, fax number +1 202 715 7039
	

 	
 	

(d)	
 	

WWCH
	

 	
 	

 	
 	

Address: 1717 H Street, N.W., Suite 800, Washington D.C. 20006, USA
	

 	
 	

 	
 	

Fax: +1 202 715 7039
	

 	
 	

 	
 	

For the attention of: General Counsel

8

 

	

10.3	
 	

A party may notify all other parties to this Deed of a change to its name, relevant addressee, address or fax number for the purposes of this Clause 10, provided that such notice shall only be effective on:
	

 	
 	

(a)	
 	

the date specified in the notification as the date on which the change is to take place; or
	

 	
 	

(b)	
 	

if no date is specified or the date specified is less than five Business Days after the date on which notice is given, the date following five Business Days after notice of any change has been given.
	

10.4	
 	

In proving service it shall be sufficient to prove that the envelope containing such notice was properly addressed and delivered to the address shown thereon or that the facsimile transmission was made and a facsimile confirmation report was received,
 as the case may be.
	

11.	
 	

THIRD PARTY RIGHTS
	

 	
 	

The parties do not intend that any term of this Deed shall be enforceable by virtue of the Contracts (Rights of Third Parties) Act 1999 by any person who is not a party to this Deed.
	

12.	
 	

VARIATION, WAIVER AND CONSENT
	

12.1	
 	

No variation or waiver of any provision of this Deed shall be effective unless it is in writing and signed by or on behalf of each of the parties (or, in the case of a waiver, by or on behalf of the party waiving compliance).
	

12.2	
 	

Unless expressly agreed, no variation or waiver of any provision or condition of this Deed shall constitute a general variation or waiver of any provision or condition of this Deed, nor shall it affect any rights, obligations or liabilities under or
pursuant to this Deed which have already accrued up to the date of variation or waiver, and the rights and obligations of the parties under or pursuant to this Deed shall remain in full force and effect, except and only to the extent that they are so
varied or waived.
	

12.3	
 	

Any consent granted under this Deed shall be effective only if given in writing and signed by the consenting party and then only in the instance and for the purpose for which it was given.
	

13.	
 	

SEVERABILITY
	

 	
 	

If any provision of this Deed is held by a court of competent jurisdiction to be illegal, invalid or unenforceable in any respect under the law of any jurisdiction, then such provision shall (so far as it is invalid or unenforceable) be given no
effect and shall be deemed not to be included in this Deed but without invalidating any of the remaining provisions of this Deed. Any provision of this Deed held invalid or unenforceable only in part or degree will remain in full force and effect to
the extent not held invalid or unenforceable. The parties shall then use all reasonable endeavours to replace the invalid or unenforceable provision(s) by a valid and enforceable substitute provision the effect of which is as close as possible to the
intended effect of the invalid or unenforceable provision.
	

14.	
 	

COUNTERPARTS
	

 	
 	

This Deed may be executed in any number of counterparts and by the parties to it on separate counterparts and each such counterpart shall constitute an original of this Deed but all of which together constitute one and the same instrument. This Deed
shall not be effective until each party has executed at least one counterpart.
	

15.	
 	

GOVERNING LAW AND SUBMISSION TO JURISDICTION
	

15.1	
 	

The construction, validity and performance of this Deed shall be governed by the laws of England and Wales.
	

15.2	
 	

The parties to this Deed irrevocably agree that the courts of England and Wales shall have exclusive jurisdiction over any claim or matter arising under or in connection with this Deed and that accordingly any proceedings in respect of any such claim
or matter may be brought in such court.

The
parties have shown their agreement to the terms of this Deed by executing it as a deed below. 

9

 

	SIGNED as a deed by [•] in his capacity	 	)	 	 
	as a P.I. Trustee in the presence of:	 	)	 	 
	

Witness's signature:	
 	

 
	

Witness's name

(in capitals):	
 	

 
	

Witness's address:	
 	

 
	

SIGNED as a deed by [•] in his capacity	
 	

)	
 	

 
	as a P.I. Trustee in the presence of:	 	)	 	 
	

Witness's signature:	
 	

 
	

Witness's name

(in capitals):	
 	

 
	

Witness's address:	
 	

 
	

SIGNED by [•], Director, and [•]	
 	

)	
 	

 
	[Director/Secretary], duly authorised for	 	)	 	 
	and on behalf of WATSON WYATT LLP	 	)	 	 
	

SIGNED by [•], Director, and [•]	
 	

)	
 	

 
	[Director/Secretary], duly authorised for	 	)	 	 
	and on behalf of WATSON WYATT	 	)	 	 
	LIMITED	 	)	 	 
	

SIGNED by [•], Director, and [•]	
 	

)	
 	

 
	[Director/Secretary], duly authorised for	 	)	 	 
	and on behalf of WATSON WYATT &	 	)	 	 
	COMPANY HOLDINGS	 	)	 	 

10

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Exhibit 10.3(c)    
    

 
 

ACCELRYS, INC.    
    
    2004 NEW-HIRE EQUITY INCENTIVE PLAN    
    
    ADOPTED: JULY 26, 2004    
    

1.     PURPOSES.  

        (a)    General Purpose.    The Company, by means of the Plan, seeks to retain the services of persons not previously
an employee or director of the Company, or following a bona fide period of non-employment, as an inducement material to the individual's
entering into employment with the Company within the meaning of Rule 4350(i)(1)(A) of the NASD Marketplace Rules, and to provide incentives for such persons to exert maximum efforts for the
success of the Company and its Affiliates. 

        (b)    Eligible Stock Award Recipients.    The persons eligible to receive Stock Awards are Employees. 

        (c)    Available Stock Awards.    The Plan provides for the grant of the following Stock Awards: (i) Options,
(ii) Stock Purchase Awards, (iii) Stock Bonus Awards, (iv) Stock Appreciation Rights, (v) Stock Unit Awards and (vi) Other Stock Awards. 

2.     DEFINITIONS.  

        (a)   "Affiliate" means any Parent or Subsidiary of the Company. 

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

        (c)   "Capitalization Adjustment" has the meaning ascribed to that term in Section 11(a). 

        (d)   "Cause" means, with respect to a Participant, the occurrence of any of the following:
(i) such Participant's commission of any felony or any crime involving fraud, dishonesty or moral turpitude under the laws of the United States or any state thereof; (ii) such
Participant's attempted commission of, or participation in, a fraud or act of dishonesty against the Company; (iii) such Participant's intentional, material violation of any material contract
or agreement between the Participant and the Company or any statutory duty owed to the Company; (iv) such Participant's unauthorized use or disclosure of the Company's confidential information
or trade secrets; or (v) such Participant's gross misconduct. The determination that a termination is for Cause shall be made by the Company in its sole discretion. Any determination by the
Company that the Continuous Service of a Participant was terminated by reason of dismissal without Cause for the purposes of outstanding Stock Awards held by such Participant shall have no effect upon
any determination of the rights or obligations of the Company or such Participant for any other purpose. 

        (e)   "Change in Control" means the occurrence, in a single transaction or in a series of related
transactions, of any one or more of the following events: 

        (i)    any Exchange Act Person becomes the Owner, directly or indirectly, of securities of the Company representing more than
fifty percent (50%) of the combined voting power of the Company's then outstanding securities other than by virtue of a merger, consolidation or similar transaction; 

        (ii)   there is consummated a merger, consolidation or similar transaction involving (directly or indirectly) the Company and,
immediately after the consummation of such merger, consolidation or similar transaction, the stockholders of the Company immediately prior thereto do not Own, directly or indirectly, either
(A) outstanding voting securities representing more than fifty percent (50%) of the combined outstanding voting power of the surviving Entity in such merger, consolidation or similar
transaction or (B) more than fifty percent (50%) of the combined 

outstanding
voting power of the parent of the surviving Entity in such merger, consolidation or similar transaction, in each case in substantially the same proportions as their Ownership of the
outstanding voting securities of the Company immediately prior to such transaction; 

        (iii) the stockholders of the Company approve or the Board approves a plan of complete dissolution or liquidation of the
Company, or a complete dissolution or liquidation of the Company shall otherwise occur; 

        (iv)  there is consummated a sale, lease, license or other disposition of all or substantially all of the consolidated assets
of the Company and its Subsidiaries, other than a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries to an Entity,
more than fifty percent (50%) of the combined voting power of the voting securities of which are Owned by stockholders of the Company in substantially the same proportions as their Ownership of the
outstanding voting securities of the Company immediately prior to such sale, lease, license or other disposition; or 

        (v)   individuals who, on the date this Plan is adopted by the Board, are members of the Board (the "Incumbent Board") cease
for any reason to constitute at least a majority of the members of the Board; provided, however, that any new Board member shall, for purposes of this
Plan, be considered as a member of the Incumbent Board if the appointment or election (or nomination for election) of such new Board member was approved or recommended by at least fifty percent (50%)
of the members of the Incumbent Board, provided that the members of the Incumbent Board, at the time of such election or nomination, constitute a majority of the Board. 

        The
term Change in Control shall not include a sale of assets, merger or other transaction effected exclusively for the purpose of changing the domicile of the Company. 

        Notwithstanding
the foregoing or any other provision of this Plan, the definition of Change in Control (or any analogous term) in an individual written agreement between the Company or
any Affiliate and the Participant shall supersede the foregoing definition with respect to Stock Awards subject to such agreement (it being understood, however, that if no definition of Change in
Control or any analogous term is set forth in such an individual written agreement, the foregoing definition shall apply). 

        (f)    "Code" means the Internal Revenue Code of 1986, as amended. 

        (g)   "Committee" means a committee of one (1) or more members of the Board appointed by the
Board in accordance with Section 3(c). 

        (h)   "Common Stock" means the common stock of the Company. 

        (i)    "Company" means Accelrys, Inc., a Delaware corporation. 

        (j)    "Consultant" means any person, including an advisor, who (i) is engaged by the Company or
an Affiliate to render consulting or advisory services and is compensated for such services or (ii) is serving as a member of the Board of Directors of an Affiliate and is compensated for such
services. However, service solely as a Director, or payment of a fee for such service, shall not cause a Director to be considered a "Consultant" for purposes of the Plan. 

        (k)   "Continuous Service" means that the Participant's service with the Company or an Affiliate,
whether as an Employee, Director or Consultant, is not interrupted or terminated. A change in the capacity in which the Participant renders service to the Company or an Affiliate as an Employee,
Consultant or Director or a change in the entity for which the Participant renders such service, provided that there is no interruption or termination of the Participant's service with the Company or
an Affiliate, shall not terminate a Participant's Continuous Service. For example, a change in status from an employee of the Company to a consultant to an Affiliate or to a Director shall not
constitute an interruption of Continuous Service. The Board or the chief executive officer of the Company, in that party's sole discretion, may determine whether Continuous Service shall be considered
interrupted in the case of any leave of absence approved by that party, including sick leave, military leave or any 

other
personal leave. Notwithstanding the foregoing, a leave of absence shall be treated as Continuous Service for purposes of vesting in a Stock Award only to such extent as may be provided in the
Company's leave of absence policy or in the written terms of the Participant's leave of absence. 

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

        (i)    a sale or other disposition of all or substantially all, as determined by the Board in its sole discretion, of the
consolidated assets of the Company and its Subsidiaries; 

        (ii)   a sale or other disposition of at least ninety percent (90%) of the outstanding securities of the Company; 

        (iii) a merger, consolidation or similar transaction following which the Company is not the surviving corporation; or 

        (iv)  a merger, consolidation or similar transaction following which the Company is the surviving corporation but the shares
of Common Stock outstanding immediately preceding the merger, consolidation or similar transaction are converted or exchanged by virtue of the merger, consolidation or similar transaction into other
property, whether in the form of securities, cash or otherwise. 

        (m)  "Director" means a member of the Board. 

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

        (o)   "Employee" means any person employed by the Company or an Affiliate. However, service solely as a
Director, or payment of a fee for such service, shall not cause a Director to be considered an "Employee" for purposes of the Plan. 

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

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

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

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

        (i)    If the Common Stock is listed on any established stock exchange or traded on the Nasdaq National Market or the Nasdaq
SmallCap Market, the Fair Market Value of a share of Common Stock shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or market
(or the exchange or market with the greatest volume of trading in the Common Stock) on the last market trading day prior to the day of determination, as reported in The Wall
Street Journal or such other source as the Board deems reliable. 

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

        (t)    "Non-Employee Director" means a Director who either (i) is not a current
employee or officer of the Company or an Affiliate, does not receive compensation, either directly or indirectly, from the Company or an Affiliate for services rendered as a consultant or in any
capacity other than as a Director (except for an amount as to which disclosure would not be required under Item 404(a) of 

Regulation S-K
promulgated pursuant to the Securities Act ("Regulation S-K")), does not possess an interest in any other transaction for which disclosure would be
required under Item 404(a) of Regulation S-K, and is not engaged in a business relationship for which disclosure would be required pursuant to Item 404(b) of
Regulation S-K; or (ii) is otherwise considered a "non-employee director" for purposes of Rule 16b-3. 

        (u)   "Option" means an option to purchase shares of Common Stock granted pursuant to the Plan that is
not intended to qualify as an incentive stock option under Section 422 of the Code and the regulations promulgated thereunder. 

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

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

        (x)   "Other Stock Award" means an award based in whole or in part by reference to the Common Stock
which is granted pursuant to the terms and conditions of Section 7(e). 

        (y)   "Other Stock Award Agreement" means a written agreement between the Company and a holder of an
Other Stock Award evidencing the terms and conditions of an Other Stock Award grant. Each Other Stock Award Agreement shall be subject to the terms and conditions of the Plan. 

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

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

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

        (cc) "Plan" means this Accelrys, Inc. 2004 New-Hire Equity Incentive Plan. 

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

        (ee) "Securities Act" means the Securities Act of 1933, as amended. 

        (ff)  "Stock Appreciation Right" means a right to receive the appreciation on Common Stock that is
granted pursuant to the terms and conditions of Section 7(d). 

        (gg) "Stock Appreciation Right Agreement" means a written agreement between the Company and a holder
of a Stock Appreciation Right evidencing the terms and conditions of a Stock Appreciation Right grant. Each Stock Appreciation Right Agreement shall be subject to the terms and conditions of the Plan. 

        (hh) "Stock Award" means any right granted under the Plan, including an Option, a Stock Purchase
Award, Stock Bonus Award, a Stock Appreciation Right, a Stock Unit Award or any Other Stock Award. 

        (ii)   "Stock Award Agreement" means a written agreement between the Company and a Participant
evidencing the terms and conditions of a Stock Award grant. Each Stock Award Agreement shall be subject to the terms and conditions of the Plan. 

        (jj)  "Stock Bonus Award" means an award of shares of Common Stock which is granted pursuant to the
terms and conditions of Section 7(b). 

        (kk) "Stock Bonus Award Agreement" means a written agreement between the Company and a holder of a
Stock Bonus Award evidencing the terms and conditions of a Stock Bonus Award grant. Each Stock Bonus Award Agreement shall be subject to the terms and conditions of the Plan. 

        (ll)   "Stock Purchase Award" means an award of shares of Common Stock which is granted pursuant to the
terms and conditions of Section 7(a). 

        (mm) "Stock Purchase Award Agreement" means a written agreement between the Company and a holder of a
Stock Purchase Award evidencing the terms and conditions of a Stock Purchase Award grant. Each Stock Purchase Award Agreement shall be subject to the terms and conditions of the Plan. 

        (nn) "Stock Unit Award" means a right to receive shares of Common Stock which is granted pursuant to
the terms and conditions of Section 7(c). 

        (oo) "Stock Unit Award Agreement" means a written agreement between the Company and a holder of a
Stock Unit Award evidencing the terms and conditions of a Stock Unit Award grant. Each Stock Unit Award Agreement shall be subject to the terms and conditions of the Plan. 

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

3.     ADMINISTRATION.  

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

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

        (i)    Subject to Section 5 herein, to determine from time to time which of the persons eligible under the Plan shall be
granted Stock Awards; when and how each Stock Award shall be granted; what type or combination of types of Stock Award shall be granted; the provisions of each Stock Award granted (which need not be
identical), including the time or times when a person shall be permitted to receive Common Stock pursuant to a Stock Award; and the number of shares of Common Stock with respect to which a Stock Award
shall be granted to each such person. 

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

        (iii) To effect, at any time and from time to time, with the consent of any adversely affected Optionholder, (1) the
reduction of the exercise price of any outstanding Option under the Plan, (2) the cancellation of any outstanding Option under the Plan and the grant in substitution therefor of (A) a
new Option under the Plan or another equity plan of the Company covering the same or a different number of shares of Common Stock, (B) a Stock Purchase Award, (C) a Stock Bonus Award,
(D) a Stock Appreciation Right, (E) a Stock Unit Award, (F) an Other Stock Award, (G) cash and/or (H) other valuable consideration (as determined by the Board, in
its sole discretion), or (3) any other action that is treated as a repricing under generally accepted accounting principles. 

        (iv)  To amend the Plan or a Stock Award as provided in Section 12. 

        (v)   To terminate or suspend the Plan as provided in Section 13. 

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

        (vii) To adopt such procedures and sub-plans as are necessary or appropriate to permit participation in the Plan
by Employees who are foreign nationals or employed outside the United States. 

        (c)    Delegation to Committee.    

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

        (ii)   Rule 16b-3 Compliance.    In the sole discretion of the Board, the Committee may consist
solely of two or more Non-Employee Directors, in accordance with Rule 16b-3. 

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

        (e)    Arbitration.    Any and all disputes, claims, or causes of action, in law or equity, concerning any Stock
Awards granted (or not granted) pursuant to the Plan or any disputes or claims relating to or arising out of the Plan shall be resolved, to the fullest extent permitted by law, by final, binding
arbitration in San Diego County, California conducted by the Judicial Arbitration and Mediation Services
("JAMS"), or its successors, under the then current rules of JAMS; provided that the arbitrator shall:
(a) have the authority to compel adequate discovery for the resolution of the dispute and to award such relief as would otherwise be permitted by law; and (b) issue a written arbitration
decision including the arbitrator's essential findings and conclusions and a statement of the award. Both the Participant and the Company shall be entitled to all rights and remedies that either the
Participant or the Company would be entitled to pursue in a court of law. 

4.     SHARES SUBJECT TO THE PLAN.  

        (a)    Share Reserve.    Subject to the provisions of Section 11(a) relating to Capitalization Adjustments, the
Common Stock that may be issued pursuant to Stock Awards shall not exceed in the aggregate Seven Hundred Fifty Thousand (750,000) shares of Common Stock. 

        (b)    Reversion of Shares to the Share Reserve.    If any Stock Award shall for any reason expire or otherwise
terminate, in whole or in part, without having been exercised in full, or if any shares of Common Stock issued to a Participant pursuant to a Stock Award are forfeited to or repurchased by the
Company, including, but not limited to, any repurchase or forfeiture caused by the failure to meet a contingency or condition required for the vesting of such shares, then the shares of Common Stock
not issued under such Stock Award, or forfeited to or repurchased by the Company, shall revert to and again become available for issuance under the Plan. If any shares subject to a Stock Award are not
delivered to a Participant because such shares are withheld for the payment of taxes or the Stock Award is exercised through a reduction of shares subject to the Stock Award
(i.e., "net exercised"), the 

number
of shares that are not delivered to the Participant shall remain available for issuance under the Plan. If the exercise price of any Stock Award is satisfied by tendering shares of Common Stock
held by the Participant (either by actual delivery or attestation), then the number of shares so tendered shall remain available for issuance under the Plan. 

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

5.     ELIGIBILITY.  

        Stock Awards may be granted only to persons not previously an Employee or Director of the Company, or following a bona
fide period of non-employment, as an inducement material to the individual's entering into employment with the Company within the meaning of
Rule 4350(i)(1)(A)(iv) of the NASD Marketplace Rules. In addition, notwithstanding any other provision of the Plan to the contrary, all Stock Awards must be granted either by a majority
of the Company's independent directors or by a committee comprised of a majority of independent directors. 

6.     OPTION PROVISIONS.  

        Each Option shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. The provisions of separate Options need not be
identical, provided, however, that each Option Agreement shall include (through incorporation of provisions hereof by reference in the Option or
otherwise) the substance of each of the following provisions: 

        (a)    Term.    The Board shall determine the term of an Option. 

        (b)    Exercise Price of an Option.    The Board, in its discretion, shall determine the exercise price of each
Option. 

        (c)    Consideration.    The purchase price of Common Stock acquired pursuant to an Option shall be paid, to the
extent permitted by applicable statutes and regulations, either (i) in cash at the time the Option is exercised or (ii) at the sole discretion of the Board (1) by delivery to the
Company (either by actual delivery or attestation) of other Common Stock at the time the Option is exercised, (2) by a "net exercise" of the Option (as further described below),
(3) pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board that, prior to the issuance of Common Stock, results in either the receipt of cash (or
check) by the Company or the receipt of irrevocable instructions to pay the aggregate exercise price to the Company from the sales proceeds or (4) in any other form of legal consideration that
may be acceptable to the Board. Unless otherwise specifically provided in the Option, the purchase price of Common Stock acquired pursuant to an Option that is paid by delivery to the Company of other
Common Stock acquired, directly or indirectly from the Company, shall be paid only by shares of the Common Stock of the Company that have been held for more than six (6) months (or such longer
or shorter period of time required to avoid a charge to earnings for financial accounting purposes). At any time that the Company is incorporated in Delaware, payment of the Common Stock's "par
value," as defined in the Delaware General Corporation Law, shall not be made by deferred payment. 

        In
the case of a "net exercise" of an Option, the Company will not require a payment of the exercise price of the Option from the Participant but will reduce the number of shares of
Common Stock issued upon the exercise by the largest number of whole shares that has a Fair Market Value that does not exceed the aggregate exercise price. With respect to any remaining balance of the
aggregate exercise price, the Company shall accept a cash payment from the Participant. Shares of Common Stock will no longer be outstanding under an Option (and will therefore not thereafter be
exercisable) following the exercise of such Option to the extent of (i) shares used to pay the exercise price of an Option under the "net exercise", (ii) shares actually delivered to the
Participant as a result of such exercise and (iii) shares withheld for purposes of tax withholding. 

        (d)    Transferability of an Option.    An Option shall be transferable pursuant to a domestic relations order and to
such further extent provided in the Option Agreement. If the Option does not 

provide
for transferability, then the Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder only
by the Optionholder. Notwithstanding the foregoing, the Optionholder may, by delivering written notice to the Company, in a form provided by or otherwise satisfactory to the Company, designate a third
party who, in the event of the death of the Optionholder, shall thereafter be entitled to exercise the Option. 

        (e)    Vesting Generally.    The total number of shares of Common Stock subject to an Option may vest and therefore
become exercisable in periodic installments that may be equal. The Option may be subject to such other terms and conditions on the time or times when it may be exercised (which may be based on
performance or other criteria) as the Board may deem appropriate. The vesting provisions of individual Options may vary. The provisions of this Section 6(g) are subject to any Option provisions
governing the minimum number of shares of Common Stock as to which an Option may be exercised. 

        (f)    Termination of Continuous Service.    In the event that an Optionholder's Continuous Service terminates (other
than for Cause or upon the Optionholder's death or Disability), the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date
of termination of Continuous Service) but only within such period of time ending on the earlier of (i) the expiration of the term of the Option as set forth in the Option Agreement or
(ii) the date three (3) months following the termination of the Optionholder's Continuous Service (or such longer or shorter period specified in the Option Agreement). If, after
termination of Continuous Service, the Optionholder does not exercise his or her Option within the time specified herein or in the Option Agreement (as applicable), the Option shall terminate. 

        (g)    Extension of Termination Date.    An Optionholder's Option Agreement may provide that if the exercise of the
Option following the termination of the Optionholder's Continuous Service (other than for Cause or upon the Optionholder's death or Disability) would be prohibited at any time solely because the
issuance of shares of Common Stock would violate the registration requirements under the Securities Act, then the Option shall terminate on the earlier of (i) the expiration of the term of the
Option set forth in the Option Agreement or (ii) the expiration of a period of three (3) months after the termination of the Optionholder's Continuous Service during which the exercise
of the Option would not be in violation of such registration requirements. 

        (h)    Disability of Optionholder.    In the event that an Optionholder's Continuous Service terminates as a result of
the Optionholder's Disability, the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of termination of Continuous
Service), but only within such period of time ending on the earlier of (i) the expiration of the term of the Option as set forth in the Option Agreement or (ii) the date twelve
(12) months following such termination of Continuous Service (or such longer or shorter period specified in the Option Agreement). If, after termination of Continuous Service, the Optionholder
does not exercise his or her Option within the time specified herein or in the Option Agreement (as applicable), the Option shall terminate. 

        (i)    Death of Optionholder.    In the event that (i) an Optionholder's Continuous Service terminates as a
result of the Optionholder's death or (ii) the Optionholder dies within the period (if any) specified in the Option Agreement after the termination of the Optionholder's Continuous Service,
then the Option may be exercised (to the extent the Optionholder was entitled to exercise such Option as of the date of death) by the Optionholder's estate, by a person who acquired the right to
exercise the Option by bequest or inheritance or by a person designated to exercise the option upon the Optionholder's death pursuant to Section 6(e) or 6(f), but only within the period ending
on the earlier of (i) the expiration of the term of such Option as set forth in the Option Agreement or (ii) the date eighteen (18) months following the date of death (or such
longer or shorter period specified in the Option Agreement). If,
after the Optionholder's death, the Option is not exercised within the time specified herein or in the Option Agreement (as applicable), the Option shall terminate. 

        (j)    Termination for Cause.    In the event that an Optionholder's Continuous Service is terminated for Cause, the
Option shall terminate upon the termination date of such Optionholder's 

Continuous
Service, and the Optionholder shall be prohibited from exercising his or her Option from and after the time of such termination of Continuous Service. 

        (k)    Early Exercise.    The Option may include a provision whereby the Optionholder may elect at any time before the
Optionholder's Continuous Service terminates to exercise the Option as to any part or all of the shares of Common Stock subject to the Option prior to the full vesting of the Option. Any unvested
shares of Common Stock so purchased may be subject to a repurchase option in favor of the Company or to any other restriction the Board determines to be appropriate. The Company shall not be required
to exercise its repurchase option until at least six (6) months (or such longer or shorter period of time required to avoid a charge to earnings for financial accounting purposes) have elapsed
following exercise of the Option unless the Board otherwise specifically provides in the Option. 

7.     PROVISIONS OF STOCK AWARDS OTHER THAN OPTIONS.  

        (a)    Stock Purchase Awards.    Each Stock Purchase Award Agreement shall be in such form and shall contain such
terms and conditions as the Board shall deem appropriate. At the Board's election, shares of Common Stock may be (i) held in book entry form subject to the Company's instructions until any
restrictions relating to the Stock Purchase Award lapse; or (ii) evidenced by a certificate, which certificate shall be held in such form and manner as determined by the Board. The terms and
conditions of Stock Purchase Award Agreements may change from time to time, and the terms and conditions of separate Stock Purchase Award Agreements need not be identical,  provided, however, that each
Stock Purchase Award Agreement shall include (through incorporation of the provisions hereof by reference in the agreement
or otherwise) the substance of each of the following provisions: 

        (i)    Purchase Price.    At the time of the grant of a Stock Purchase Award, the Board will determine the price to be
paid by the Participant for each share subject to the Stock Purchase Award. To the extent required by applicable law, the price to be paid by the Participant for each share of the Stock Purchase Award
will not be less than the par value of a share of Common Stock. 

        (ii)   Consideration.    At the time of the grant of a Stock Purchase Award, the Board will determine the
consideration permissible for the payment of the purchase price of the Stock Purchase Award. The purchase price of Common Stock acquired pursuant to the Stock Purchase Award shall be paid either:
(i) in cash at the time of purchase or (ii) in any other form of legal consideration that may be acceptable to the Board in its sole discretion and permissible under applicable law. 

        (iii) Vesting.    Shares of Common Stock acquired under a Stock Purchase Award may be subject to a share repurchase
right or option in favor of the Company in accordance with a vesting schedule to be determined by the Board. 

        (iv)  Termination of Participant's Continuous Service.    In the event that a Participant's Continuous Service
terminates, the Company shall have the right, but not the obligation, to repurchase or otherwise reacquire, any or all of the shares of Common Stock held by the Participant that have not vested as of
the date of termination under the terms of the Stock Purchase Award Agreement. At the Board's election, the repurchase right may be at the lesser of: (i) the Fair Market Value on the relevant
date or (ii) the Participant's original cost. The Company shall not be required to exercise its repurchase option until at least six (6) months (or such longer or shorter period of time
required to avoid a charge to earnings for financial accounting purposes) have elapsed following the purchase of the restricted stock unless otherwise determined by the Board or provided in the Stock
Purchase Award Agreement. 

        (v)   Transferability.    Rights to purchase or receive shares of Common Stock granted under a Stock Purchase Award
shall be transferable by the Participant only upon such terms and conditions as are set forth in the Stock Purchase Award Agreement, as the Board shall determine in its sole discretion, and so long as
Common Stock awarded under the Stock Purchase Award remains subject to the terms of the Stock Purchase Award Agreement. 

        (b)    Stock Bonus Awards.    Each Stock Bonus Award Agreement shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate. At the Board's election, shares of Common Stock may be (i) held in book entry form subject to the Company's instructions until any restrictions
relating to the Stock Bonus Award lapse; or (ii) evidenced by a certificate, which certificate shall be held in such form and manner as determined by the Board. The terms and conditions of
Stock Bonus Award Agreements may change from time to time, and the terms and conditions of separate Stock Bonus Award Agreements need not be identical, provided,
however, that each Stock Bonus Award Agreement shall include (through incorporation of provisions hereof by reference in the agreement or otherwise) the substance of each of
the following provisions: 

        (i)    Consideration.    A Stock Bonus Award may be awarded in consideration for (i) past services actually
rendered to the Company or an Affiliate or (ii) any other form of legal consideration that may be acceptable to the Board in its sole discretion and permissible under applicable law. 

        (ii)   Vesting.    Shares of Common Stock awarded under the Stock Bonus Award Agreement may be subject to forfeiture
to the Company in accordance with a vesting schedule to be determined by the Board. 

        (iii) Termination of Participant's Continuous Service.    In the event a Participant's Continuous Service
terminates, the Company may receive via a forfeiture condition, any or all of the shares of Common Stock held by the Participant which have not vested as of the date of termination of Continuous
Service under the terms of the Stock Bonus Award Agreement. 

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

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

        (i)    Consideration.    At the time of grant of a Stock Unit Award, the Board will determine the consideration, if
any, to be paid by the Participant upon delivery of each share of Common Stock subject to the Stock Unit Award. The consideration to be paid (if any) by the Participant for each share of Common Stock
subject to a Stock Unit Award may be paid in any form of legal consideration that may be acceptable to the Board in its sole discretion and permissible under applicable law. 

        (ii)   Vesting.    At the time of the grant of a Stock Unit Award, the Board may impose such restrictions or
conditions to the vesting of the Stock Unit Award as it, in its sole discretion, deems appropriate. 

        (iii) Payment.    A Stock Unit Award may be settled by the delivery of shares of Common Stock, their cash
equivalent, any combination thereof or in any other form of consideration as determined by the Board and contained in the Stock Unit Award Agreement. 

        (iv)  Additional Restrictions.    At the time of the grant of a Stock Unit Award, the Board, as it deems
appropriate, may impose such restrictions or conditions that delay the delivery of the shares of Common Stock (or their cash equivalent) subject to a Stock Unit Award after the vesting of such Stock
Unit Award. 

        (v)   Dividend Equivalents.    Dividend equivalents may be credited in respect of shares of Common Stock covered by a
Stock Unit Award, as determined by the Board and contained in the 

Stock
Unit Award Agreement. At the sole discretion of the Board, such dividend equivalents may be converted into additional shares of Common Stock covered by the Stock Unit Award in such manner as
determined by the Board. Any additional shares covered by the Stock Unit Award credited by reason of such dividend equivalents will be subject to all the terms and conditions of the underlying Stock
Unit Award Agreement to which they relate. 

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

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

        (i)    Strike Price and Calculation of Appreciation.    Each Stock Appreciation Right will be denominated in share of
Common Stock equivalents. The appreciation distribution payable on the exercise of a Stock Appreciation Right will be not greater than an amount equal to the excess of (A) the aggregate Fair
Market Value (on the date of the exercise of the Stock Appreciation Right) of a number of shares of Common Stock equal to the number of share of Common Stock equivalents in which the Participant is
vested under such Stock Appreciation Right, and with respect to which the Participant is exercising the Stock Appreciation Right on such date, over (B) an amount (the strike price) that will be
determined by the Board at the time of grant of the Stock Appreciation Right. 

        (ii)   Vesting.    At the time of the grant of a Stock Appreciation Right, the Board may impose such restrictions or
conditions to the vesting of such Stock Appreciation Right as it, in its sole discretion, deems appropriate. 

        (iii) Exercise.    To exercise any outstanding Stock Appreciation Right, the Participant must provide written
notice of exercise to the Company in compliance with the provisions of the Stock Appreciation Right Agreement evidencing such Stock Appreciation Right. 

        (iv)  Payment.    The appreciation distribution in respect to a Stock Appreciation Right may be paid in Common
Stock, in cash, in any combination of the two or in any other form of consideration as determined by the Board and contained in the Stock Appreciation Right Agreement evidencing such Stock
Appreciation Right. 

        (v)   Termination of Continuous Service.    In the event that a Participant's Continuous Service terminates, the
Participant may exercise his or her Stock Appreciation Right (to the extent that the Participant was entitled to exercise such Stock Appreciation Right as of the date of termination) but only within
such period of time ending on the earlier of (i) the date three (3) months following the termination of the Participant's Continuous Service (or such longer or shorter period specified
in the Stock Appreciation Right Agreement) or (ii) the expiration of the term of the Stock Appreciation Right as set forth in the Stock Appreciation Right Agreement. If, after termination, the
Participant does not exercise his or her Stock Appreciation Right within the time specified herein or in the Stock Appreciation Right Agreement (as applicable), the Stock Appreciation Right shall
terminate. 

        (e)    Other Stock Awards.    Other forms of Stock Awards valued in whole or in part by reference to, or otherwise
based on, Common Stock may be granted either alone or in addition to Stock Awards provided for under Section 6 and the preceding provisions of this Section 7. Subject to the provisions
of the Plan, the Board shall have sole and complete authority to determine the persons to whom and the time or times at which such Other Stock Awards will be granted, the number of shares of Common
Stock (or the cash equivalent thereof) to be granted pursuant to such Other Stock Awards and all other terms and conditions of such Other Stock Awards. 

8.     COVENANTS OF THE COMPANY.  

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

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

9.     USE OF PROCEEDS FROM STOCK.  

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

10.   MISCELLANEOUS.  

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

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

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

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

securities
laws. The Company may, upon advice of counsel to the Company, place legends on stock certificates issued under the Plan as such counsel deems necessary or appropriate in order to comply
with applicable securities laws, including, but not limited to, legends restricting the transfer of the Common Stock. 

        (e)    Withholding Obligations.    To the extent provided by the terms of a Stock Award Agreement, the Company may in
its sole discretion, satisfy any federal, state or local tax withholding obligation relating to a Stock Award by any of the following means (in addition to the Company's right to withhold from any
compensation paid to the Participant by the Company) or by a combination of such means: (i) causing the Participant to tender a cash payment; (ii) withholding shares of Common Stock from
the shares of Common Stock issued or otherwise issuable to the Participant in connection with the Stock Award; or (iii) by such other method as may be set forth in the Stock Award Agreement. 

        (f)    Electronic Delivery.    Any reference herein to a "written" agreement or document shall include any agreement
or document delivered electronically or posted on the Company's intranet. 

11.   ADJUSTMENTS UPON CHANGES IN STOCK.  

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

        (b)    Dissolution or Liquidation.    In the event of a dissolution or liquidation of the Company, all outstanding
Stock Awards (other than Stock Awards consisting of vested and outstanding shares of Common Stock not subject to the Company's right of repurchase) shall terminate immediately prior to the completion
of such dissolution or liquidation, and the shares of Common Stock subject to the Company's repurchase option may be repurchased by the Company notwithstanding the fact that the holder of such Stock
Award is providing Continuous Service, provided, however, that the Board may, in its sole discretion, cause some or all Stock Awards to become fully
vested, exercisable and/or no longer subject to repurchase or forfeiture (to the extent such Stock Awards have not previously expired or terminated) before the dissolution or liquidation is completed
but contingent on its completion. 

        (c)    Corporate Transaction.    In the event of a Corporate Transaction, any surviving corporation or acquiring
corporation may assume or continue any or all Stock Awards outstanding under the Plan or may substitute similar stock awards for Stock Awards outstanding under the Plan (including but not limited to,
awards to acquire the same consideration paid to the stockholders of the Company, as the case may be, pursuant to the Corporate Transaction), and any reacquisition or repurchase rights held by the
Company in respect of Common Stock issued pursuant to Stock Awards may be assigned by the Company to the successor of the Company (or the successor's parent company), if any, in connection with such
Corporate Transaction. A surviving corporation or acquiring corporation may not choose to assume or continue only a portion of a Stock Award or substitute a similar stock award for only a portion of a
Stock Award. The terms of any assumption, continuation or substitution shall be set by the Board in accordance with the provisions of Section 3. In the event that any surviving corporation or
acquiring corporation does not assume or continue all such outstanding Stock Awards or substitute similar stock awards for all such outstanding Stock Awards, then with respect to Stock Awards that
have been not assumed, continued or substituted and that are held by Participants whose Continuous 

Service
has not terminated prior to the effective time of the Corporate Transaction, the vesting of such Stock Awards (and, if applicable, the time at which such Stock Awards may be exercised) shall
(contingent upon the effectiveness of the Corporate Transaction) be accelerated in full to a date prior to the effective time of such Corporate Transaction as the Board shall determine (or, if the
Board shall not determine such a date, to the date that is five (5) days prior to the effective time of the Corporate Transaction), and such Stock Awards shall terminate if not exercised (if
applicable) at or prior to such effective time, and any reacquisition or repurchase rights held by the Company with respect to such Stock Awards shall (contingent upon the effectiveness of the
Corporate Transaction) lapse. With respect to any other Stock Awards outstanding under the Plan that have not been assumed, continued or substituted, the vesting of such Stock Awards (and, if
applicable, the time at which such Stock Award may be exercised) shall not be accelerated, unless otherwise provided in a written agreement between the Company or any Affiliate and the holder of such
Stock Award, and such Stock Awards (other than Stock Awards consisting of vested and outstanding shares of Common Stock not subject to the Company's right of repurchase) shall terminate if not
exercised (if applicable) prior to the effective time of the Corporate Transaction. 

        (d)    Change in Control.    A Stock Award may be subject to additional acceleration of vesting and exercisability
upon or after a Change in Control as may be provided in the Stock Award Agreement for such Stock Award or as may be provided in any other written agreement between the Company or any Affiliate and the
Participant, but in the absence of such provision, no such acceleration shall occur. 

12.   AMENDMENT OF THE PLAN AND STOCK AWARDS.  

        (a)    Amendment of Plan.    Subject to the limitations, if any, of applicable law, the Board at any time, and from
time to time, may amend the Plan. However, except as provided in Section 11(a) relating to Capitalization Adjustments, no amendment shall be effective unless approved by the stockholders of the
Company to the extent stockholder approval is necessary to satisfy applicable law. 

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

        (c)    Amendment of Stock Awards.    The Board at any time, and from time to time, may amend the terms of any one or
more Stock Awards, including, but not limited to, amendments to provide terms more favorable than previously provided in the agreement evidencing a Stock Award, subject to any specified limits in the
Plan that are not subject to Board discretion; provided, however, that the rights under any Stock Award shall not be impaired by any such amendment
unless (i) the Company requests the consent of the Participant and (ii) the Participant consents in writing. 

13.   TERMINATION OR SUSPENSION OF THE PLAN.  

        (a)    Plan Term.    The Board may suspend or terminate the Plan at any time. No Stock Awards may be granted under the
Plan while the Plan is suspended or after it is terminated. 

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

14.   EFFECTIVE DATE OF PLAN.  

        The Plan shall become effective as determined by the Board. 

15.   CHOICE OF LAW.  

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

QuickLinks

Exhibit 10.3(c)

ACCELRYS, INC. 2004 NEW-HIRE EQUITY INCENTIVE PLAN ADOPTED: JULY 26, 2004

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