Document:

Security Devices International Inc.: Exhibit 10.18 - Filed by newsfilecorp.com

Exhibit 10.18

FORM 5D 

ESCROW AGREEMENT 
(Select: VALUE SECURITY/SURPLUS SECURITY) 

THIS AGREEMENT is made as of the ______day of
______________, ______

AMONG: 

(the “Issuer”) 

AND: 

(the “Escrow Agent”) 

AND: 

EACH OF THE UNDERSIGNED
SECURITYHOLDERS OF THE ISSUER 

(a “Securityholder” or “you”)

(collectively, the “Parties”) 

This Agreement is being entered into by the Parties
under Exchange Policy 5.4 - Escrow, Vendor Consideration and Resale
Restrictions (the Policy) in connection with a [Reverse
Takeover, Change of Business, Qualifying Transaction, or other transaction
(please describe)]. The Issuer is a [Tier 1/Tier 2 Issuer] as described in
Policy 2.1 - Initial Listing Requirements. 

For good and valuable consideration, the Parties agree
as follows: 

	PART 1 	ESCROW 

	1.1 	
      Appointment of Escrow
Agent

The Issuer and the Securityholders appoint the Escrow Agent to
act as escrow agent under this Agreement. The Escrow Agent accepts the
appointment. 

	1.2 	Deposit of Escrow Securities in Escrow
    
	  	  
	
      (1) 
	
      You are depositing the securities (escrow securities)
      listed opposite your name in Schedule “A” with the Escrow Agent to be
      held in escrow under this Agreement. You will immediately deliver or cause
      to be delivered to the Escrow Agent any share certificates or other
      evidence of these securities which you have or which you may later
      receive. 

	FORM 5D 	ESCROW AGREEMENT 	Page
      1 
	(as at June 14, 2010 ) 		  

	(2) 	
      If you receive any other securities (additional escrow
      securities):

	 	 	 
		(a) 	
      as a dividend or other distribution on escrow
      securities;

	 	 	 
		(b) 	
      on the exercise of a right of purchase, conversion or
      exchange attaching to escrow securities, including securities received on
      conversion of special warrants;

	 	 	 
		(c) 	
      on a subdivision, or compulsory or automatic conversion
      or exchange of escrow securities; or

	 	 	 
		(d) 	
      from a successor issuer in a business combination, if
      Part 6 of this Agreement applies,

	 	 	 
		
      you will deposit them in escrow with the Escrow Agent.
      You will deliver or cause to be delivered to the Escrow Agent any share
      certificates or other evidence of those additional escrow securities. When
      this Agreement refers to escrow securities, it includes additional
      escrow securities.

	 	 	 
	(3) 	
      You will immediately deliver to the Escrow Agent any
      replacement share certificates or other evidence of additional escrow
      securities issued to you.

	1.3 	
      Direction to Escrow Agent

The Issuer and the Securityholders direct the Escrow Agent to
hold the escrow securities in escrow until they are released from escrow under
this Agreement. 

	PART 2 	RELEASE OF ESCROW SECURITIES
  

	2.1 	
      Release Provisions

The provisions of Schedule(s) [Insert schedule reference(s)]
are incorporated into and form part of this Agreement. 

Select applicable schedule(s) 

[          
Value Security Escrow Agreement for Tier 1 Issuer – attach schedule B(1)]

[           Value
Security Escrow Agreement for Tier 2 Issuer – attach schedule B(2)]

[           Surplus
Security Escrow Agreement for Tier 1 Issuer – attach schedule B(3)]

[           Surplus
Security Escrow Agreement for Tier 2 Issuer – attach schedule B(4)] 

	FORM 5D 	ESCROW AGREEMENT 	Page
      2 
	(as at June 14, 2010) 		  

	2.2 	
      Additional escrow
securities

If you acquire additional escrow securities in connection with
the transaction to which this agreement relates, those securities will be added
to the securities already in escrow, to increase the number of remaining escrow
securities. After that, all of the escrow securities will be released in
accordance with the applicable release schedule. 

	2.3 	
      Additional Requirements for Tier 2 Surplus Escrow
      Securities

Where securities are subject to a Tier 2 Surplus Security
Escrow Agreement [Schedule B(4)], the following additional conditions apply:

	(1) 	
      The escrow securities will be cancelled if the asset,
      property, business or interest therein in consideration of which the
      securities were issued, is lost, or abandoned, or the operations or
      development of such asset, property or business is discontinued.

	 	 	 
	(2) 	
      The Escrow Agent will not release escrow securities from
      escrow under schedule B(4) unless the Escrow Agent has received, within
      the 15 days prior to the release date, a certificate from the Issuer
      that:

	 	 	 
		(a) 	
      is signed by two directors or officers of the
    Issuer;

	 	 	 
		(b) 	
      is dated not more than 30 days prior to the release
      date;

	 	 	 
		(c) 	
      states that the assets for which the escrow securities
      were issued (the “Assets”) were included as assets on the balance sheet of
      the Issuer in the most recent financial statements filed by the Issuer
      with the Exchange; and

	 	 	 
		(d) 	
      states that the Issuer has no reasonable knowledge that
      the Assets will not be included as assets on the balance sheet of the
      Issuer in the next financial statements to be filed by the Issuer with the
      Exchange.

	 	 	 
	(3) 	
      If, at any time during the term of this Agreement, the
      Escrow Agent is prohibited from releasing escrow securities on a release
      date specified schedule B(4) as a result of section 2.3(2) above, then the
      Escrow Agent will not release any further escrow securities from escrow
      without the written consent of the Exchange.

	 	 	 
	(4) 	
      If as a result of this section 2.3, the Escrow Agent does
      not release escrow securities from escrow for a period of five years,
      then:

	 	 	 
		(a) 	
      the Escrow Agent will deliver a notice to the Issuer, and
      will include with the notice any certificates that the Escrow Agent holds
      which evidence the escrow securities; and

	 	 	 
		(b) 	
      the Issuer and the Escrow Agent will take such action as
      is necessary to cancel the escrow securities.

	FORM 5D 	ESCROW AGREEMENT 	Page
      3 
	(as at June 14, 2010) 		  

	(5) 	
      For the purposes of cancellation of escrow securities
      under this section, each Securityholder irrevocably appoints the Escrow
      Agent as his or her attorney, with authority to appoint substitute
      attorneys, as necessary.

	2.4 	
      Delivery of Share Certificates for Escrow
      Securities

The Escrow Agent will send to each Securityholder any share
certificates or other evidence of that Securityholder’s escrow securities in the
possession of the Escrow Agent released from escrow as soon as reasonably
practicable after the release. 

	2.5 	
      Replacement Certificates

If, on the date a Securityholder’s escrow securities are to be
released, the Escrow Agent holds a share certificate or other evidence
representing more escrow securities than are to be released, the Escrow Agent
will deliver the share certificate or other evidence to the Issuer or its
transfer agent and request replacement share certificates or other evidence. The
Issuer will cause replacement share certificates or other evidence to be
prepared and delivered to the Escrow Agent. After the Escrow Agent receives the
replacement share certificates or other evidence, the Escrow Agent will send to
the Securityholder or at the Securityholder’s direction, the replacement share
certificate or other evidence of the escrow securities released. The Escrow
Agent and Issuer will act as soon as reasonably practicable. 

	2.6 	
      Release upon Death

	(1) 	
      If a Securityholder dies, the Securityholder’s escrow
      securities will be released from escrow. The Escrow Agent will deliver any
      share certificates or other evidence of the escrow securities in the
      possession of the Escrow Agent to the Securityholder’s legal
      representative provided that:

	 	 	 
		(a) 	
      the legal representative of the deceased Securityholder
      provides written notice to the Exchange of the intent to release the
      escrow securities as at a specified date which is at least 10 business
      days and not more than 30 business days prior to the proposed release;
      and

	 	 	 
		(b) 	
      the Exchange does not provide notice of its objection to
      the Escrow Agent prior to 10:00 a.m. (Vancouver time) or 11:00 a.m.
      (Calgary time) on such specified date.

	 	 	 
	(2) 	
      Prior to delivery the Escrow Agent must
receive:

	 	 	 
		(a) 	
      a certified copy of the death certificate; and

	 	 	 
		(b) 	
      any evidence of the legal representative’s status that
      the Escrow Agent may reasonably require.

	FORM 5D 	ESCROW AGREEMENT 	Page
      4 
	(as at June 14, 2010) 		  

	2.7 	
      Exchange Discretion to
Terminate

If the Escrow Agent receives a request from the Exchange to
halt or terminate the release of escrow securities from escrow, then the Escrow
Agent will comply with that request, and will not release any escrow securities
from escrow until it receives the written consent of the Exchange. 

	2.8 	
      Discretionary Applications

The Exchange may consent to the release from escrow of escrow
securities in other circumstances and on terms and on conditions it deems
appropriate. Securities may be released from escrow provided that the Escrow
Agent receives written notice from the Exchange. 

	PART 3 	EARLY RELEASE ON CHANGE OF ISSUER STATUS
    

	3.1 	
      Early Release – Graduation to Tier
  1

	(1) 	
      When a Tier 2 Issuer becomes a Tier 1 Issuer, the release
      schedule for its escrow securities changes.

	 	 	 	 
	(2) 	
      If the Issuer reasonably believes that it meets the
      Initial Listing Requirements of a Tier 1 Issuer as described in Policy 2.1
      – Initial Listing Requirements, the Issuer may make application to
      the Exchange to be listed as a Tier 1 Issuer. The Issuer must also
      concurrently provide notice to the Escrow Agent that it is making such an
      application.

	 	 	 	 
	(3) 	
      If the graduation to Tier 1 is accepted by the Exchange,
      the Exchange will issue an Exchange Bulletin confirming final acceptance
      for listing of the Issuer on Tier 1. Upon issuance of this Bulletin the
      Issuer must immediately:

	 	 	 	 
		(a) 	
      issue a news release:

	 	 	 	 
			(i) 	
      disclosing that it has been accepted for graduation to
      Tier 1; and

	 	 	 	 
			(ii) 	
      disclosing the number of escrow securities to be released
      and the dates of release under the new schedule; and

	 	 	 	 
		(b) 	
      provide the news release, together with a copy of the
      Exchange Bulletin, to the Escrow Agent.

	 	 	 	 
	(4) 	
      Upon completion of the steps in section 3.1(3) above, the
      Issuer’s release schedule will be replaced as
follows:

	Applicable
      Schedule Pre-Graduation 	Applicable Schedule Post-Graduation 
	Schedule B(2) 	Schedule B(1) 
	Schedule B(4) 	Schedule B(3) 

	FORM 5D 	ESCROW AGREEMENT 	Page
      5 
	(as at June 14, 2010) 		  

	(5) 	
      Within 10 days of the Exchange Bulletin confirming the
      Issuer’s listing on Tier 1, the Escrow Agent must release any escrow
      securities from escrow securities which under the new release schedule
      would have been releasable at a date prior to the Exchange
  Bulletin.

	PART 4 	DEALING WITH ESCROW SECURITIES
  

	4.1 	
      Restriction on Transfer,
etc.

Unless it is expressly permitted in this Agreement, you will
not sell, transfer, assign, mortgage, enter into a derivative transaction
concerning, or otherwise deal in any way with your escrow securities or any
related share certificates or other evidence of the escrow securities. If a
Securityholder is a private company controlled by one or more Principals of the
Issuer, the Securityholder may not participate in a transaction that results in
a change of its control or a change in the economic exposure of the Principals
to the risks of holding escrow securities. 

	4.2 	
      Pledge, Mortgage or Charge as Collateral for a
      Loan

Subject to Exchange acceptance, you may pledge, mortgage or
charge your escrow securities to a financial institution as collateral for a
loan, provided that no escrow securities or any share certificates or other
evidence of escrow securities will be transferred or delivered by the Escrow
Agent to the financial institution for this purpose. The loan agreement must
provide that the escrow securities will remain in escrow if the lender realizes
on the escrow securities to satisfy the loan. 

	4.3 	
      Voting of Escrow
Securities

Although you may exercise voting rights attached to your escrow
securities, you may not, while your securities are held in escrow, exercise
voting rights attached to any securities (whether in escrow or not) in support
of one or more arrangements that would result in the repayment of capital being
made on the escrow securities prior to a winding up of the Issuer. 

	4.4 	
      Dividends on Escrow
Securities

You may receive a dividend or other distribution on your escrow
securities, and elect the manner of payment from the standard options offered by
the Issuer. If the Escrow Agent receives a dividend or other distribution on
your escrow securities, other than additional escrow securities, the Escrow
Agent will pay the dividend or other distribution to you on receipt. 

	4.5 	
      Exercise of Other Rights Attaching to Escrow
      Securities

You may exercise your rights to exchange or convert your escrow
securities in accordance with this agreement. 

	FORM 5D 	ESCROW AGREEMENT 	Page
      6 
	(as at June 14, 2010) 		  

	PART 5 	PERMITTED TRANSFERS WITHIN ESCROW
  

	5.1 	
      Transfer to Directors and Senior
  Officers

	(1) 	
      You may transfer escrow securities within escrow to
      existing or, upon their appointment, incoming directors or senior officers
      of the Issuer or any of its material operating subsidiaries, if the
      Issuer’s board of directors has approved the transfer and provided
      that:

	 	 	 
		(a) 	
      you make application to transfer under the Policy at
      least 10 business days and not more than 30 business days prior to the
      date of the proposed transfer; and

	 	 	 
		(b) 	
      the Exchange does not provide notice of its objection to
      the Escrow Agent prior to 10:00 a.m. (Vancouver time) or 11:00 a.m.
      (Calgary time) on such specified date.

	 	 	 
	(2) 	
      Prior to the transfer the Escrow Agent must
    receive:

	 	 	 
		(a) 	
      a certified copy of the resolution of the board of
      directors of the Issuer approving the transfer;

	 	 	 
		(b) 	
      a certificate signed by a director or officer of the
      Issuer authorized to sign, stating that the transfer is to a director or
      senior officer of the Issuer or a material operating subsidiary and that
      any required acceptance from the Exchange the Issuer is listed on has been
      received;

	 	 	 
		(c) 	
      an acknowledgment in the form of Form 5E signed by the
      transferee; and

	 	 	 
		(d) 	
      a transfer power of attorney, completed and executed by
      the transferor in accordance with the requirements of the Issuer’s
      transfer agent.

	5.2 	
      Transfer to Other
Principals

	(1) 	
      You may transfer escrow securities within
  escrow:

	 	 	 	 
		(a) 	
      to a person or company that before the proposed transfer
      holds more than 20% of the voting rights attached to the Issuer’s
      outstanding securities; or

	 	 	 	 
		(b) 	
      to a person or company that after the proposed
      transfer

	 	 	 	 
			(i) 	
      will hold more than 10% of the voting rights attached to
      the Issuer’s outstanding securities, and

	 	 	 	 
			(ii) 	
      has the right to elect or appoint one or more directors
      or senior officers of the Issuer or any of its material operating
      subsidiaries,

	 	 	 	 
				
      provided that:

	FORM 5D 	ESCROW AGREEMENT 	Page
      7 
	(as at June 14, 2010) 		  

		(c) 	
      you make an application to transfer under the Policy at
      least 10 business days and not more than 30 business days prior to the
      date of the proposed transfer; and

	 	 	 	 	 
		(d) 	
      the Exchange does not provide notice of its objection to
      the Escrow Agent prior to 10:00 a.m. (Vancouver time) or 11:00 a.m.
      (Calgary time) on such specified date.

	 	 	 	 	 
	(2) 	
      Prior to the transfer the Escrow Agent must
    receive:

	 	 	 	 	 
		(a) 	
      a certificate signed by a director or officer of the
      Issuer authorized to sign, stating that:

	 	 	 	 	 
			(i) 	
      the transfer is to a person or company that the officer
      believes, after reasonable investigation, holds more than 20% of the
      voting rights attached to the Issuer’s outstanding securities before the
      proposed transfer; or

	 	 	 	 	 
			(ii) 	
      the transfer is to a person or company that:

	 	 	 	 	 
				(A) 	
      the officer believes, after reasonable investigation,
      will hold more than 10% of the voting rights attached to the Issuer’s
      outstanding securities; and

	 	 	 	 	 
				(B) 	
      has the right to elect or appoint one or more directors
      or senior officers of the Issuer or any of its material operating
      subsidiaries

	 	 	 	 	 
				
      after the proposed transfer; and

	 	 	 	 	 
			(iii) 	
      any required approval from the Exchange or any other
      exchange on which the Issuer is listed has been received;

	 	 	 	 	 
		(b) 	
      an acknowledgment in the form of Form 5E signed by the
      transferee; and

	 	 	 	 	 
		(c) 	
      a transfer power of attorney, completed and executed by
      the transferor in accordance with the requirements of the Issuer’s
      transfer agent.

	5.3 	
      Transfer upon
Bankruptcy

	(1) 	
      You may transfer escrow securities within escrow to a
      trustee in bankruptcy or another person or company entitled to escrow
      securities on bankruptcy provided that:

	 	 	 
		(a) 	
      you make application to transfer under the Policy at
      least 10 business days and not more than 30 business days prior to the
      date of the proposed transfer; and

	 	 	 
		(b) 	
      the Exchange does not provide notice of its objection to
      the Escrow Agent prior to 10:00 a.m. (Vancouver time) or 11:00 a.m.
      (Calgary time) on such specified date.

	FORM 5D 	ESCROW AGREEMENT 	Page
      8 
	(as at June 14, 2010) 		  

	(2) 	
      Prior to the transfer, the Escrow Agent must
    receive:

	 	 	 	 
		(a) 	
      a certified copy of either

	 	 	 	 
			(i) 	
      the assignment in bankruptcy filed with the
      Superintendent of Bankruptcy, or

	 	 	 	 
			(ii) 	
      the receiving order adjudging the Securityholder
      bankrupt;

	 	 	 	 
		(b) 	
      a certified copy of a certificate of appointment of the
      trustee in bankruptcy;

	 	 	 	 
		(c) 	
      a transfer power of attorney, duly completed and executed
      by the transferor in accordance with the requirements of the Issuer’s
      transfer agent; and

	 	 	 	 
		(d) 	
      an acknowledgment in the form of Form 5E signed
  by

	 	 	 	 
			(i) 	
      the trustee in bankruptcy or

	 	 	 	 
			(ii) 	
      on direction from the trustee, with evidence of that
      direction attached to the acknowledgement form, another person or company
      legally entitled to the escrow securities.

	5.4 	
      Transfer Upon Realization of Pledged, Mortgaged or
      Charged Escrow Securities

	(1) 	
      You may transfer escrow securities you have pledged,
      mortgaged or charged under section 4.2 to a financial institution as
      collateral for a loan within escrow to the lender on realization provided
      that:

	 	 	 
		(a) 	
      you make application to transfer under the Policy at
      least 10 business days and not more than 30 business days prior to the
      date of the proposed transfer; and

	 	 	 
		(b) 	
      the Exchange does not provide notice of its objection to
      the Escrow Agent prior to 10:00 a.m. (Vancouver time) or 11:00 a.m.
      (Calgary time) on such specified date.

	 	 	 
	(2) 	
      Prior to the transfer the Escrow Agent must
    receive:

	 	 	 
		(a) 	
      a statutory declaration of an officer of the financial
      institution that the financial institution is legally entitled to the
      escrow securities;

	 	 	 
		(b) 	
      evidence that the Exchange has accepted the pledge,
      mortgage or charge of escrow securities to the financial
    institution;

	 	 	 
		(c) 	
      a transfer power of attorney, executed by the transferor
      in accordance with the requirements of the Issuer’s transfer agent;
    and

	 	 	 
		(d) 	
      an acknowledgement in the form of Form 5E signed by the
      financial institution.

	FORM 5D 	ESCROW AGREEMENT 	Page
      9 
	(as at June 14, 2010) 		  

	5.5 	
      Transfer to Certain Plans and
  Funds

	(1) 	
      You may transfer escrow securities within escrow to or
      between a registered retirement savings plan (RRSP), registered retirement
      income fund (RRIF) or other similar registered plan or fund with a
      trustee, where the beneficiaries of the plan or fund are limited to you
      and your spouse, children and parents provided that:

	 	 	 
		(a) 	
      you make application to transfer under the Policy at
      least 10 business days and not more than 30 business days prior to the
      date of the proposed transfer; and

	 	 	 
		(b) 	
      the Exchange does not provide notice of its objection to
      the Escrow Agent prior to 10:00 a.m. (Vancouver time) or 11:00 a.m.
      (Calgary time) on such specified date.

	 	 	 
	(2) 	
      Prior to the transfer the Escrow Agent must
    receive:

	 	 	 
		(a) 	
      evidence from the trustee of the transferee plan or fund,
      or the trustee’s agent, stating that, to the best of the trustee’s
      knowledge, the annuitant of the RRSP or RRIF or the beneficiaries of the
      other registered plan or fund do not include any person or company other
      than you and your spouse, children and parents;

	 	 	 
		(b) 	
      a transfer power of attorney, executed by the transferor
      in accordance with the requirements of the Issuer’s transfer agent;
    and

	 	 	 
		(c) 	
      an acknowledgement in the form of Form 5E signed by the
      trustee of the plan or fund.

	5.6 	
      Effect of Transfer Within
Escrow

After the transfer of escrow securities within escrow, the
escrow securities will remain in escrow and released from escrow under this
Agreement as if no transfer has occurred, on the same terms that applied before
the transfer. The Escrow Agent will not deliver any share certificates or other
evidence of the escrow securities to transferees under this Part 5. 

	5.7 	
      Discretionary Applications

The Exchange may consent to the transfer within escrow of
escrow securities in other circumstances and on such terms and conditions as it
deems appropriate. 

	FORM 5D 	ESCROW AGREEMENT 	Page
      10 
	(as at June 14, 2010) 		  

	PART 6 	BUSINESS COMBINATIONS

	6.1 	
      Business Combinations

This Part applies to the following (business
combinations): 

	(a) 	
      a formal take-over bid for all outstanding securities of
      the Issuer or which, if successful, would result in a change of control of
      the Issuer

	 	 
	(b) 	
      a formal issuer bid for all outstanding equity securities
      of the Issuer

	 	 
	(c) 	
      a statutory arrangement

	 	 
	(d) 	
      an amalgamation

	 	 
	(e) 	
      a merger

	 	 
	(f) 	
      a reorganization that has an effect similar to an
      amalgamation or merger

	6.2 	
      Delivery to Escrow
Agent

	(1) 	
      You may tender your escrow securities to a person or
      company in a business combination. At least five business days prior to
      the date the escrow securities must be tendered under the business
      combination, you must deliver to the Escrow Agent:

	 	 	 
		(a) 	
      a written direction signed by you that directs the Escrow
      Agent to deliver to the depositary under the business combination any
      share certificates or other evidence of the escrow securities and a
      completed and executed cover letter or similar document and, where
      required, transfer power of attorney completed and executed for transfer
      in accordance with the requirements of the Issuer’s depository, and any
      other documentation specified or provided by you and required to be
      delivered to the depositary under the business combination;

	 	 	 
		(b) 	
      written consent of the Exchange; and

	 	 	 
		(c) 	
      any other information concerning the business combination
      as the Escrow Agent may reasonably require.

	6.3 	
      Delivery to Depositary

	(1) 	
      As soon as reasonably practicable, and in any event no
      later than three business days after the Escrow Agent receives the
      documents and information required under section 6.2, the Escrow Agent
      will deliver to the depositary, in accordance with the direction, any
      share certificates or other evidence of the escrow securities, and a
      letter addressed to the depositary that

	 	 	 
		(a) 	
      identifies the escrow securities that are being
      tendered;

	FORM 5D 	ESCROW AGREEMENT 	Page
      11 
	(as at June 14, 2010) 		  

	 	(b) 	
      states that the escrow securities are held in
    escrow;

	 	 	 
	 	(c) 	
      states that the escrow securities are delivered only for
      the purposes of the business combination and that they will be released
      from escrow only after the Escrow Agent receives the information described
      in section 6.4;

	 	 	 
	 	(d) 	
      if any share certificates or other evidence of the escrow
      securities have been delivered to the depositary, requires the depositary
      to return to the Escrow Agent, as soon as practicable, the share
      certificates or other evidence of escrow securities that are not released
      from escrow into the business combination; and

	 	 	 
	 	(e) 	
      where applicable, requires the depositary to deliver or
      cause to be delivered to the Escrow Agent, as soon as practicable, share
      certificates or other evidence of additional escrow securities that you
      acquire under the business combination.

	6.4 	
      Release of Escrow Securities to
  Depositary

	(1) 	
      The Escrow Agent will release from escrow the tendered
      escrow securities provided that:

	 	 	 	 
		(a) 	
      you or the Issuer make application to release the
      tendered securities under the Policy on a date at least 10 business days
      and not more than 30 business days prior to the date of the proposed
      release date; and

	 	 	 	 
		(b) 	
      the Exchange does not provide notice of its objection to
      the Escrow Agent prior to 10:00 a.m. (Vancouver time) or 11:00 a.m.
      (Calgary time) on such specified date;

	 	 	 	 
		(c) 	
      the Escrow Agent receives a declaration signed by the
      depositary or, if the direction identifies the depositary as acting on
      behalf of another person or company in respect of the business
      combination, by that other person or company, that

	 	 	 	 
			(i) 	
      the terms and conditions of the business combination have
      been met or waived; and

	 	 	 	 
			(ii) 	
      the escrow securities have either been taken up and paid
      for or are subject to an unconditional obligation to be taken up and paid
      for under the business combination.

	6.5 	
      Escrow of New
Securities

	(1) 	
      If you receive securities (new securities) of
      another issuer (successor issuer) in exchange for your escrow
      securities, the new securities will be subject to escrow in substitution
      for the tendered escrow securities, unless, immediately after completion
      of the business combination,

	 	 	 
		(a)	
      the successor issuer is an exempt issuer as defined in
      the National Policy;

	FORM 5D 	ESCROW AGREEMENT 	Page
      12 
	(as at June 14, 2010) 		  

	 	(b) 	
      the escrow holder was subject to a Value Security Escrow
      Agreement and is not a Principal of the successor issuer; and

	 	 	 
	 	(c) 	
      the escrow holder holds less than 1% of the voting rights
      attached to the successor issuer’s outstanding securities. (In calculating
      this percentage, include securities that may be issued to the escrow
      holder under outstanding convertible securities in both the escrow
      holder’s securities and the total securities
  outstanding.)

	6.6 	
      Release from Escrow of New
  Securities

	(1) 	
      The Escrow Agent will send to a Securityholder share
      certificates or other evidence of the Securityholder’s new securities as
      soon as reasonably practicable after the Escrow Agent receives:

	 	 	 	 
		(a) 	
      a certificate from the successor issuer signed by a
      director or officer of the successor issuer authorized to sign

	 	 	 	 
			(i) 	
      stating that it is a successor issuer to the Issuer as a
      result of a business combination;

	 	 	 	 
			(ii) 	
      containing a list of the securityholders whose new
      securities are subject to escrow under section 6.5;

	 	 	 	 
			(iii) 	
      containing a list of the securityholders whose new
      securities are not subject to escrow under section 6.5;

	 	 	 	 
		(b) 	
      written confirmation from the Exchange that it has
      accepted the list of Securityholders whose new securities are not subject
      to escrow under section 6.5.

	 	 	 	 
	(2) 	
      The escrow securities of the Securityholders, whose
      securities are not subject to escrow under section 6.5, will be released,
      and the Escrow Agent will send any share certificates or other evidence of
      the escrow securities in the possession of the Escrow Agent in accordance
      with section 2.4.

	 	 	 	 
	(3) 	
      If your new securities are subject to escrow, unless
      subsection (4) applies, the Escrow Agent will hold your new securities in
      escrow on the same terms and conditions, including release dates, as
      applied to the escrow securities that you exchanged.

	 	 	 	 
	(4) 	
      If the Issuer is a Tier 2 Issuer and the successor issuer
      is a Tier 1 Issuer, the release provisions in section 3.1(4) relating to
      graduation will apply.

	FORM 5D 	ESCROW AGREEMENT 	Page
      13 
	(as at June 14, 2010) 		  

	PART 7 	RESIGNATION OF ESCROW AGENT
  

	7.1 	
      Resignation of Escrow
Agent

	(1) 	
      If the Escrow Agent wishes to resign as escrow agent, the
      Escrow Agent will give written notice to the Issuer and the
    Exchange.

	 	 
	(2) 	
      If the Issuer wishes to terminate the Escrow Agent as
      escrow agent, the Issuer will give written notice to the Escrow Agent and
      the Exchange.

	 	 
	(3) 	
      If the Escrow Agent resigns or is terminated, the Issuer
      will be responsible for ensuring that the Escrow Agent is replaced not
      later than the resignation or termination date by another escrow agent
      that is acceptable to the Exchange and that has accepted such appointment,
      which appointment will be binding on the Issuer and the
      Securityholders.

	 	 
	(4) 	
      The resignation or termination of the Escrow Agent will
      be effective, and the Escrow Agent will cease to be bound by this
      Agreement, on the date that is 60 days after the date of receipt of the
      notices referred to above by the Escrow Agent or Issuer, as applicable, or
      on such other date as the Escrow Agent and the Issuer may agree upon (the
      “resignation or termination date”), provided that the resignation or
      termination date will not be less than 10 business days before a release
      date.

	 	 
	(5) 	
      If the Issuer has not appointed a successor escrow agent
      within 60 days of the resignation or termination date, the Escrow Agent
      will apply, at the Issuer’s expense, to a court of competent jurisdiction
      for the appointment of a successor escrow agent, and the duties and
      responsibilities of the Escrow Agent will cease immediately upon such
      appointment.

	 	 
	(6) 	
      On any new appointment under this section, the successor
      Escrow Agent will be vested with the same powers, rights, duties and
      obligations as if it had been originally named herein as Escrow Agent,
      without any further assurance, conveyance, act or deed. The predecessor
      Escrow Agent, upon receipt of payment for any outstanding account for its
      services and expenses then unpaid, will transfer, deliver and pay over to
      the successor Escrow Agent, who will be entitled to receive, all
      securities, records or other property on deposit with the predecessor
      Escrow Agent in relation to this Agreement and the predecessor Escrow
      Agent will thereupon be discharged as Escrow Agent.

	 	 
	(7) 	
      If any changes are made to Part 8 of this Agreement as a
      result of the appointment of the successor Escrow Agent, those changes
      must not be inconsistent with the Policy and the terms of this Agreement
      and the Issuer to this Agreement will fie a copy of the new Agreement with
      the Exchange.

	FORM
      5D 	ESCROW AGREEMENT 	Page 14 
	(as at June 14, 2010) 		  

	PART 8 	OTHER CONTRACTUAL ARRANGEMENTS
  

[You may insert any other contractual arrangements the Parties
to this Agreement wish to provide to govern the responsibilities, remuneration,
liabilities, and indemnities for the duties of the Escrow Agent or any other
matter which the Parties wish to include in this Agreement provided that the
terms are not inconsistent with the applicable Exchange Policies and the terms
of this Agreement.] 

	PART 9 	INDEMNIFICATION OF THE EXCHANGE
  

	9.1 	
      Indemnification

	(1) 	
      The Issuer and each Securityholder jointly and
      severally:

	 	 	 
		(a) 	
      release, indemnify and save harmless the Exchange from
      all costs (including legal cost, expenses and disbursements), charges,
      claims, demands, damages, liabilities, losses and expenses incurred by the
      Exchange;

	 	 	 
		(b) 	
      agree not to make or bring a claim or demand, or commence
      any action, against the Exchange; and

	 	 	 
		(c) 	
      agree to indemnify and save harmless the Exchange from
      all costs (including legal costs) and damages that the Exchange incurs or
      is required by law to pay as a result of any person’s claim, demand or
      action,

	 	 	 
		
      arising from any and every act or omission committed or
      omitted by the Exchange, in connection with this Agreement, even if said
      act or omission was negligent, or constituted a breach of the terms of
      this Agreement.

	 	 	 
	(2) 	
      This indemnity survives the release of the escrow
      securities and the termination of this
Agreement.

	PART 10 	NOTICES 

	10.1 	
      Notice to Escrow Agent

Documents will be considered to have been delivered to the
Escrow Agent on the next business day following the date of transmission, if
delivered by fax, the date of delivery, if delivered by hand during normal
business hours or by prepaid courier, or 5 business days after the date of
mailing, if delivered by mail, to the following: 

[Name, address, contact person, fax number] 

	FORM 5D 	ESCROW AGREEMENT 	Page
      15 
	(as at June 14, 2010) 		  

	10.2 	
      Notice to Issuer

Documents will be considered to have been delivered to the
Issuer on the next business day following the date of transmission, if delivered
by fax, the date of delivery, if delivered by hand or by prepaid courier, or 5
business days after the date of mailing, if delivered by mail, to the following:

[Name, address, contact person, fax number] 

	10.3 	
      Deliveries to
Securityholders

Documents will be considered to have been delivered to a
Securityholder on the date of delivery, if delivered by hand or by prepaid
courier, or 5 business days after the date of mailing, if delivered by mail, to
the address on the Issuer’s share register. 

Any share certificates or other evidence of a Securityholder’s
escrow securities will be sent to the Securityholder’s address on the Issuer’s
share register unless the Securityholder has advised the Escrow Agent in writing
otherwise at least ten business days before the escrow securities are released
from escrow. The Issuer will provide the Escrow Agent with each Securityholder’s
address as listed on the Issuer’s share register. 

	10.4 	
      Change of Address

	(1) 	
      The Escrow Agent may change its address for delivery by
      delivering notice of the change of address to the Issuer and to each
      Securityholder.

	 	 
	(2) 	
      The Issuer may change its address for delivery by
      delivering notice of the change of address to the Escrow Agent and to each
      Securityholder.

	 	 
	(3) 	
      A Securityholder may change that Securityholder’s address
      for delivery by delivering notice of the change of address to the Issuer
      and to the Escrow Agent.

	10.5 	
      Postal Interruption

A party to this Agreement will not mail a Document if the party
is aware of an actual or impending disruption of postal service. 

	PART 11 	GENERAL 

	11.1 	
      Interpretation – “holding
  securities”

Unless the context otherwise requires, all capitalized terms
that are not otherwise defined in this Agreement, shall have the meanings as
defined in Policy 1.1 - Interpretation or in Policy 5.4 -
Escrow, Vendor Consideration and Resale Restrictions. 

	FORM 5D 	 ESCROW AGREEMENT 	Page
      16 
	(as at June 14, 2010) 		  

When this Agreement refers to securities that a Securityholder
“holds”, it means that the Securityholder has direct or indirect beneficial
ownership of or control or direction over the securities. 

	11.2 	
      Enforcement by Third
Parties

The Issuer enters this Agreement both on its own behalf and as
trustee for the Exchange and the Securityholders of the Issuer, and this
Agreement may be enforced by either the Exchange, or the Securityholders of the
Issuer, or both. 

	11.3 	
      Termination, Amendment, and Waiver of
    Agreement

	(1) 	
      Subject to subsection 11.3(3), this Agreement shall only
      terminate:

	 	 	 	 
		(a) 	
      with respect to all the Parties:

	 	 	 	 
			(i) 	
      as specifically provided in this Agreement;

	 	 	 	 
			(ii) 	
      subject to subsection 11.3(2), upon the agreement of all
      Parties; or

	 	 	 	 
			(iii) 	
      when the Securities of all Securityholders have been
      released from escrow pursuant to this Agreement; and

	 	 	 	 
		(b) 	
      with respect to a Party:

	 	 	 	 
			(i) 	
      as specifically provided in this Agreement; or

	 	 	 	 
			(ii) 	
      if the Party is a Securityholder, when all of the
      Securityholder’s Securities have been released from escrow pursuant to
      this Agreement.

	 	 	 	 
	(2) 	
      An agreement to terminate this Agreement pursuant to
      section 11.3(1)(a)(ii) shall not be effective unless and until the
      agreement to terminate

	 	 	 	 
		(a) 	
      is evidenced by a memorandum in writing signed by all
      Parties;

	 	 	 	 
		(b) 	
      if the Issuer is listed on the Exchange, the termination
      of this Agreement has been consented to in writing by the Exchange;
    and

	 	 	 	 
		(c) 	
      has been approved by a majority vote of securityholders
      of the Issuer excluding in each case, Securityholders.

	 	 	 	 
	(3) 	
      Notwithstanding any other provision in this Agreement,
      the obligations set forth in section 9.1 shall survive the termination of
      this Agreement and the resignation or removal of the Escrow
  Agent.

	FORM 5D 	ESCROW AGREEMENT 	Page
      17 
	(as at June 14, 2010) 		  

	(4) 	
      No amendment or waiver of this Agreement or any part of
      this Agreement shall be effective unless the amendment or
waiver:

	 	 	 
		(a) 	
      is evidenced by a memorandum in writing signed by all
      Parties;

	 	 	 
		(b) 	
      if the Issuer is listed on the Exchange, the amendment or
      waiver of this Agreement has been approved in writing by the Exchange;
      and

	 	 	 
		(c) 	
      has been approved by a majority vote of securityholders
      of the Issuer excluding in each case, Securityholders.

	 	 	 
	(5) 	
      No waiver of any of the provisions of this Agreement
      shall be deemed or shall constitute a waiver of any other provision
      (whether similar or not), nor shall any waiver constitute a continuing
      waiver, unless expressly provided.

	11.4 	
      Severance of Illegal
Provision

Any provision or part of a provision of this Agreement
determined by a court of competent jurisdiction to be invalid, illegal or
unenforceable shall be deemed stricken to the extent necessary to eliminate any
invalidity, illegality or unenforceability, and the rest of the Agreement and
all other provisions and parts thereof shall remain in full force and effect and
be binding upon the parties hereto as though the said illegal and/or
unenforceable provision or part thereof had never been included in this
Agreement. 

	11.5 	
      Further Assurances

The Parties will execute and deliver any further documents and
perform any further acts reasonably requested by any of the Parties to this
agreement which are necessary to carry out the intent of this Agreement. 

	11.6 	
      Time

Time is of the essence of this Agreement. 

	11.7 	
      Consent of Exchange to
Amendment

The Exchange must approve any amendment to this Agreement if
the Issuer is listed on the Exchange at the time of the proposed amendment. 

	11.8 	
      Additional Escrow
Requirements

A Canadian exchange may impose escrow terms or conditions in
addition to those set out in this Agreement. 

	FORM 5D 	ESCROW AGREEMENT 	Page
      18 
	(as at June 14, 2010) 		  

	11.9 	
      Governing Laws

The laws of {insert principal jurisdiction} and the applicable
laws of Canada will govern this Agreement. 

	11.10 	
      Counterparts

The Parties may execute this Agreement by fax and in
counterparts, each of which will be considered an original and all of which will
be one agreement. 

	11.11 	
      Singular and Plural

Wherever a singular expression is used in this Agreement, that
expression is considered as including the plural or the body corporate where
required by the context. 

	11.12 	
      Language

This Agreement has been drawn up in the [English/French]
language at the request of all parties. Cet acte a été rédigé en
[anglais/français] à la demande de toutes les parties. 

	11.13 	
      Benefit and Binding Effect

This Agreement will benefit and bind the Parties and their
heirs, executors, administrators, successors and permitted assigns and all
persons claiming through them as if they had been a Party to this Agreement.

	11.14 	
      Entire Agreement

This is the entire agreement among the Parties concerning the
subject matter set out in this Agreement and supersedes any and all prior
understandings and agreements. 

	11.15 	
      Successor to Escrow Agent

Any corporation with which the Escrow Agent may be amalgamated,
merged or consolidated, or any corporation succeeding to the business of the
Escrow Agent will be the successor of the Escrow Agent under this Agreement
without any further act on its part or on the part or any of the Parties,
provided that the successor is recognized by the Exchange. 

The Parties have executed and delivered this Agreement as of
the date set out above. 

[Escrow Agent] 

_________________________________________
Authorized
signatory 

_________________________________________
Authorized
signatory 

	FORM 5D 	ESCROW AGREEMENT 	Page
      19 
	(as at June 14, 2010) 		  

[Issuer] 

____________________________________________
Authorized
signatory 

____________________________________________
Authorized
signatory 

If the Securityholder is an individual: 

	Signed, sealed and delivered by	)	 
	[Securityholder] in the presence of: 	)	 
		)	 
		)	 
	Name 	)	 
		)	 
		)  	 
	Address 	)	[Securityholder] 
		) 	 
		) 	 
		) 	 
		) 	 
		) 	 
	Occupation 	)	 

If the Securityholder is not an individual: 

[Securityholder] 

_____________________________________________
Authorized
signatory 

_____________________________________________
Authorized
signatory 

	FORM 5D 	ESCROW AGREEMENT 	Page
      20 
	(as at June 14, 2010) 		  

Schedule “A” to Escrow Agreement 

Securityholder 

Name: 

Signature: 

Address for Notice:

	 
	   

Securities: 

	Class and
      Type 
(i.e. Value Securities or
      
Surplus Securities) 	Number 	Certificate(s) (if applicable)
  
	 	   	 
	 	   	 
		  	

	FORM 5D 	ESCROW AGREEMENT 	Page
      21 
	(as at June 14, 2010) 		  

SCHEDULE B(1) – TIER 1 VALUE SECURITY ESCROW AGREEMENT

RELEASE OF SECURITIES 

Timed Release 

	  	Percentage of Total 	Total Number of Escrowed 
	Release Dates 	Escrowed Securities to be 	Securities to be Released 
	  	Released 	  
	[Insert date of Exchange 	25% 	  
	Bulletin] 	  	  
	[Insert date 6 months 	25% 	  
	following Exchange 	  	  
	Bulletin] 	  	  
	[Insert date 12 months 	25% 	  
	following Exchange 	  	  
	Bulletin] 	  	  
	[Insert date 18 months 	25% 	  
	following Exchange 	  	  
	Bulletin] 	  	  
	TOTAL 	100% 	  

*In the simplest case where there are no changes to the escrow
securities initially deposited and no additional escrow securities, then the
release schedule outlined above results in the escrow securities being released
in equal tranches of 25%. 

	FORM 5D 	ESCROW AGREEMENT 	Page
      22 
	(as at June 14, 2010) 		  

SCHEDULE B(2) – TIER 2 VALUE SECURITY ESCROW AGREEMENT

RELEASE OF SECURITIES 

Timed Release 

	  	Percentage of Total Escrowed 	Total Number of Escrowed 
	Release Dates 	Securities to be Released 	Securities to be Released 
	[Insert date of Exchange 	10% 	  
	Bulletin] 	  	  
	[Insert date 6 months 	15% 	  
	following Exchange 	  	  
	Bulletin] 	  	  
	[Insert date 12 months 	15% 	  
	following Exchange 	  	  
	Bulletin] 	  	  
	[Insert date 18 months 	15% 	  
	following Exchange 	  	  
	Bulletin] 	  	  
	[Insert date 24 months 	15% 	  
	following Exchange 	  	  
	Bulletin] 	  	  
	[Insert date 30 months 	15% 	  
	following Exchange 	  	  
	Bulletin] 	  	  
	[Insert date 36 months 	15% 	  
	following Exchange 	  	  
	Bulletin] 	  	  
	TOTAL 	100% 	  

*In the simplest case where there are no changes to the escrow
securities initially deposited and no additional escrow securities, the release
schedule outlined above results in the escrow securities being released in equal
tranches of 15% after completion of the release on the date of the Exchange
Bulletin. 

	FORM 5D 	ESCROW AGREEMENT 	Page
      23 
	(as at June 14, 2010) 		  

SCHEDULE B(3) – TIER 1 SURPLUS SECURITY ESCROW AGREEMENT

RELEASE OF SECURITIES 

Timed Release 

	  	Percentage of Total Escrowed 	Total Number of Escrowed 
	Release Dates 	Securities to be Released 	Securities to be Released 
	[Insert date of Exchange 	10% 	  
	Bulletin] 	  	  
	[Insert date 6 months 	20% 	  
	following Exchange 	  	  
	Bulletin] 	  	  
	[Insert date 12 months 	30% 	  
	following Exchange 	  	  
	Bulletin] 	  	  
	[Insert date 18 months 	40% 	  
	following Exchange 	  	  
	Bulletin] 	  	  
	TOTAL 	100% 	  

	FORM 5D
    	ESCROW AGREEMENT 	Page 24 
	(as at June 14, 2010) 		  

SCHEDULE B(4) – TIER 2 SURPLUS SECURITY ESCROW AGREEMENT

RELEASE OF SECURITIES 

Timed Release 

	  	Percentage of Total 	Total Number of 
	Release Dates 	Escrowed Securities to be 	Escrowed Securities to be 
	  	Released 	Released 
	[Insert date of Exchange 	5% 	  
	Bulletin] 	  	  
	[Insert date 6 months following 	5% 	  
	Exchange Bulletin] 	  	  
	[Insert date 12 months 	10% 	  
	following Exchange Bulletin] 	  	  
	[Insert date 18 months 	10% 	  
	following Exchange Bulletin] 	  	  
	[Insert date 24 months 	15% 	  
	following Exchange Bulletin] 	  	  
	[Insert date 30 months 	15% 	  
	following Exchange Bulletin] 	  	  
	[Insert date 36 months 	40% 	  
	following Exchange Bulletin] 	  	  
	TOTAL 	100% 	  

	FORM 5D 	ESCROW AGREEMENT 	Page
      25 
	(as at June 14, 2010) 		  

SCHEDULE B(5) 

UNDERTAKING OF HOLDING COMPANY 

TO: THE TSX VENTURE EXCHANGE 

● (the "Securityholder") has subscribed for and agreed
to purchase, as principal, ● Common Shares of
● (the "Escrowed Securities"). The
Escrowed Securities will be held in escrow as detailed in the escrow agreement
entered into between ● (the “Issuer”),
● and the Securityholder. 

The undersigned Securityholder undertakes that, to the extent
reasonably possible, it will not permit or authorize its securities to be issued
or transferred, nor will it otherwise authorize any transaction involving any of
its securities that could reasonably result in a change of its control without
the prior consent of the TSX Venture Exchange, as long as any Escrowed
Securities remain held or are required to be held in escrow. 

DATED this ● day of
●. 

	 	  
	 	(Name of Securityholder - please print) 
	 	  
	 	  
	 	(Authorized Signature) 
	 	  
	 	  
	 	(Official Capacity - please print) 
	 	  
	 	  
		(Please print here name of individual whose
      signature appears above) 

	FORM 5D 	ESCROW AGREEMENT 	Page
      26 
	(as at June 14, 2010) 		  

The Securityholder is directly controlled by the undersigned
who undertakes that, to the extent reasonably possible, he will not permit or
authorize securities of the Securityholder to be issued or transferred, nor
otherwise carry out any transaction that could reasonably result in a change of
control of the Securityholder without the prior consent of the TSX Venture
Exchange, as long as any Escrowed Securities remain held or are required to be
held in escrow. 

DATED this ● day of
●. 

	 	  
	 	(Signature) 
	 	  
	 	  
	 	(Name of Controlling Securityholder – please
      print) 
	 	  
	 	  
	 	(Signature) 
	 	  
	 	  
	 	(Name of Controlling Securityholder – please
      print) 

	FORM 5D 	ESCROW AGREEMENT 	Page
      27 
	(as at June 14, 2010)TIBX Ex10.1 04.12.2013 S-8

EXHIBIT 10.1 

TIBCO SOFTWARE INC.
INDUCEMENT AWARD PLAN

-i-

TABLE OF CONTENTS

	
					
	 
	 
	 
	 
	Page

	Section 1 BACKGROUND AND PURPOSE
	1

	 
	1.1
	 
	Background and Effective Date
	1

	 
	1.2
	 
	Purpose of the Plan
	1

	Section 2 DEFINITIONS
	1

	 
	2.1
	 
	"1934 Act"
	1

	 
	2.2
	 
	"Affiliate"
	1

	 
	2.3
	 
	"Award"
	1

	 
	2.4
	 
	"Award Agreement"
	1

	 
	2.5
	 
	"Board"
	1

	 
	2.6
	 
	"Cause"
	1

	 
	2.7
	 
	"Change of Control"
	1

	 
	2.8
	 
	"Code"
	2

	 
	2.9
	 
	"Committee"
	2

	 
	2.10
	 
	"Company"
	2

	 
	2.11
	 
	"Consultant"
	2

	 
	2.12
	 
	"Director"
	2

	 
	2.13
	 
	"Disability"
	2

	 
	2.14
	 
	"Employee"
	2

	 
	2.15
	 
	"Exchange Program"
	2

	 
	2.16
	 
	"Exercise Price"
	3

	 
	2.17
	 
	"Fair Market Value"
	3

	 
	2.18
	 
	"Grant Date"
	3

	 
	2.19
	 
	"Incentive Stock Option"
	3

	 
	2.20
	 
	"Nonqualified Stock Option"
	3

	 
	2.21
	 
	"Option"
	3

	 
	2.22
	 
	"Participant"
	3

	 
	2.23
	 
	"Period of Restriction"
	3

	 
	2.24
	 
	"Plan"
	3

	 
	2.25
	 
	"Restricted Stock"
	3

	 
	2.26
	 
	"Restricted Stock Unit" or "RSU"
	3

	 
	2.27
	 
	"Retirement"
	3

	 
	2.28
	 
	"Rule 16b-3"
	3

	 
	2.29
	 
	"Section 16 Person"
	4

	 
	2.30
	 
	"Shares"
	4

	 
	2.31
	 
	"Subsidiary"
	4

	 
	2.32
	 
	"Tax Obligations"
	4

	 
	2.33
	 
	"Termination of Service"
	4

	 
	 
	 
	 
	 

-i-

TABLE OF CONTENTS
(Continued)

	
					
	 
	 
	 
	 
	Page

	Section 3 ADMINISTRATION
	5

	 
	3.1
	 
	The Committee
	5

	 
	3.2
	 
	Authority of the Committee
	5

	 
	3.3
	 
	Delegation by the Committee
	5

	 
	3.4
	 
	Decisions Binding
	5

	 
	3.5
	 
	Restrictions and Legends
	5

	Section 4 SHARES SUBJECT TO THE PLAN
	5

	 
	4.1
	 
	Number of Shares
	5

	 
	4.2
	 
	Lapsed Awards
	5

	 
	4.3
	 
	Adjustments in Awards and Authorized Shares
	6

	Section 5 STOCK OPTIONS
	6

	 
	5.1
	 
	Grant of Options
	6

	 
	5.2
	 
	Award Agreement
	6

	 
	5.3
	 
	Exercise Price
	6

	 
	5.4
	 
	Expiration of Options
	7

	 
	5.5
	 
	Exercisability of Options
	7

	 
	5.6
	 
	Payment
	7

	Section 6 RESTRICTED STOCK
	8

	 
	6.1
	 
	Grant of Restricted Stock
	8

	 
	6.2
	 
	Restricted Stock Agreement
	8

	 
	6.3
	 
	Other Restrictions
	8

	 
	6.4
	 
	Voting Rights
	8

	 
	6.5
	 
	Dividends and Other Distributions
	8

	Section 7 RESTRICTED STOCK UNITS
	9

	 
	7.1
	 
	Grant of RSUs
	9

	 
	7.2
	 
	RSU Agreement
	9

	Section 8 GENERAL PROVISIONS
	9

	 
	8.1
	 
	Impact of Change of Control on Options, Restricted Stock Awards and Restricted Stock Unit Awards
	9

	 
	8.2
	 
	Assumption of Options, Restricted Stock Awards and Restricted Stock Unit Awards Upon Change of Control
	10

	 
	8.3
	 
	Deferrals
	10

	 
	8.4
	 
	No Effect on Employment or Service
	11

	 
	8.5
	 
	Cancellation and Rescission of Awards
	11

	 
	8.6
	 
	Participation
	11

	 
	8.7
	 
	Successors
	11

	 
	8.8
	 
	Beneficiary Designations
	11

	 
	8.9
	 
	Limited Transferability of Awards
	12

	 
	8.10
	 
	No Rights as Stockholder
	12

	 
	8.11
	 
	Leaves of Absence
	12

	 
	 
	 
	 
	 

-ii-

TABLE OF CONTENTS
(Continued)

	
					
	 
	 
	 
	 
	Page

	Section 9 AMENDMENT, TERMINATION, AND DURATION
	12

	 
	9.1
	 
	Amendment, Suspension, or Termination
	12

	 
	9.2
	 
	Duration of the Plan
	13

	Section 10 TAX WITHHOLDING
	13

	 
	10.1
	 
	Withholding Requirements
	13

	 
	10.2
	 
	Withholding Arrangements
	13

	Section 11 LEGAL CONSTRUCTION
	13

	 
	11.1
	 
	Gender and Number
	13

	 
	11.2
	 
	Severability
	13

	 
	11.3
	 
	Requirements of Law
	13

	 
	11.4
	 
	Securities Law Compliance
	14

	 
	11.5
	 
	Code Section 409A
	14

	 
	11.6
	 
	Governing Law
	14

	 
	11.7
	 
	Captions
	14

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TIBCO SOFTWARE INC.
INDUCEMENT AWARD PLAN
SECTION 1 
BACKGROUND AND PURPOSE
1.1    Background and Effective Date.  The Plan permits the grant of Nonqualified Stock Options, Restricted Stock, and Restricted Stock Units.  The Plan is effective as of its adoption by the Board (the "Effective Date").
1.2    Purpose of the Plan.  The Plan is intended to provide an inducement material to individuals entering into employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4).
SECTION 2
DEFINITIONS
The following words and phrases shall have the following meanings unless a different meaning is plainly required by the context:
2.1    "1934 Act" means the Securities Exchange Act of 1934, as amended.  Reference to a specific section of the 1934 Act or regulation thereunder shall include such section or regulation, any valid regulation promulgated under such section, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation.
2.2    "Affiliate" means any corporation or any other entity (including, but not limited to, partnerships and joint ventures) controlling, controlled by, or under common control with the Company.
2.3    "Award" means, individually or collectively, a grant of Nonqualified Stock Options, Restricted Stock or RSUs pursuant to the Plan.
2.4    "Award Agreement" means the written agreement, notice, or other instrument or document setting forth the terms and conditions applicable to each Award granted pursuant to the Plan.
2.5    "Board" means the Board of Directors of the Company.
2.6    "Cause" shall have the meaning set forth in the Participant's employment or other agreement with the Company or any Subsidiary provided that if the Participant is not a party to any such employment or other agreement or such employment or other agreement does not contain a definition of Cause, then Cause shall have the meaning set forth in the applicable Award Agreement.
2.7    "Change of Control" means (i) a sale of all or substantially all of the Company's assets, (ii) any merger consolidation, or other business combination transaction of the Company with 

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or into another corporation, entity, or person, other than a transaction in which the holders of at least a majority of the shares of voting capital stock of the Company outstanding immediately prior to such transaction continue to hold (either by such shares remaining outstanding or by their being converted into shares of voting capital stock of the surviving entity) a majority of the total voting power represented by the shares of voting capital stock of the Company (or the surviving entity) outstanding immediately after such transaction, (iii) the direct or indirect acquisition (including by way of a tender or exchange offer) by any person, or persons acting as a group, of beneficial ownership or a right to acquire beneficial ownership of shares representing a majority of the voting power of the then outstanding shares of capital stock of the Company, (iv) a contested election of Directors, as a result of which or in connection with which the persons who were Directors before such election or their nominees cease to constitute a majority of the Board, or (v) a dissolution or liquidation of the Company.
2.8    "Code" means the Internal Revenue Code of 1986, as amended from time to time, and any successor thereto.  Reference to a specific section of the Code or regulation thereunder shall include such section or regulation, any valid regulation promulgated under such section, and any comparable provision of any successor legislation or regulation amending, supplementing or superseding such section or regulation.
2.9    "Committee" means the Compensation Committee of the Board or a subcommittee thereof or such other committee as may be designated by the Board to administer the Plan.
2.10    "Company" means TIBCO Software Inc., a Delaware corporation, or any successor thereto.
2.11    "Consultant" means any consultant, independent contractor, advisor, or other person who provides services to the Company, its Subsidiaries or Affiliates, but who is neither an Employee nor a Director.
2.12    "Director" means any individual who is a member of the Board of Directors of the Company.
2.13    "Disability" means a permanent disability in accordance with a policy or policies established by the Company from time to time.
2.14    "Employee" means any employee of the Company or of a Subsidiary, whether such employee is so employed at the time the Plan is adopted or becomes so employed subsequent to the adoption of the Plan.
2.15    "Exchange Program" means a program established by the Committee under which outstanding Awards are amended to provide for a lower Exercise Price or surrendered or cancelled in exchange for (a) Awards with a lower Exercise Price, (b) a different type of Award, (c) cash, or (d) a combination of (a), (b) and/or (c).  Notwithstanding the preceding, the term Exchange Program does not include any (i) action described in Section 4.3, or (ii) transfer or other disposition permitted under Section 8.9.

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2.16    "Exercise Price" means the price at which a Share may be purchased by a Participant pursuant to the exercise of an Option.
2.17    "Fair Market Value" means the closing per share selling price for Shares for the date of grant on the principal securities exchange on which the Shares are traded or, if there is no such sale on the relevant date, then on the last previous day on which a sale was reported; if the Shares are not listed for trading on a national securities exchange, the fair market value of Shares shall be determined in good faith by the Committee.  Notwithstanding the preceding, for federal, state, and local income tax reporting purposes, fair market value shall be determined by the Company in accordance with uniform and nondiscriminatory standards adopted by it from time to time.
2.18    "Grant Date" means, with respect to an Award, the date that the Award was granted.  The Grant Date of an Award shall not be earlier than the date the Award is approved by the Committee.
2.19    "Incentive Stock Option" means a stock option to purchase Shares that is designated as an Incentive Stock Option and is intended to meet the requirements of Section 422 of the Code.
2.20    "Nonqualified Stock Option" means an option to purchase Shares that is not intended to be an Incentive Stock Option.
2.21    "Option" means a Nonqualified Stock Option.
2.22    "Participant" means an Employee who receives an outstanding Award. 
2.23    "Period of Restriction" means the period during which the transfer of Shares of Restricted Stock are subject to restrictions and therefore, the Shares are subject to a substantial risk of forfeiture.  As provided in Section 6, such restrictions may be based on the passage of time, the achievement of target levels of performance, or the occurrence of other events as determined by the Committee.
2.24    "Plan" means the TIBCO Software Inc. Inducement Award Plan, as set forth in this instrument and as hereafter amended from time to time.
2.25    "Restricted Stock" means an Award granted to a Participant pursuant to Section 6.
2.26    "Restricted Stock Unit" or "RSU" means an Award granted to a Participant pursuant to Section 7.
2.27    "Retirement" means, in the case of a Non-Employee Director or an Employee a Termination of Service occurring in accordance with a policy or policies established by the Company from time to time, provided, however that with respect to a Consultant, no Termination of Service shall be deemed to be on account of "Retirement."
2.28    "Rule 16b-3" means Rule 16b-3 promulgated under the 1934 Act, and any future regulation amending, supplementing or superseding such regulation.

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2.29    "Section 16 Person" means a person who, with respect to the Shares, is subject to Section 16 of the 1934 Act.
2.30    "Shares" means the shares of common stock of the Company.
2.31    "Subsidiary" means any corporation in an unbroken chain of corporations beginning with the Company as the corporation at the top of the chain, but only if each of the corporations below the Company (other than the last corporation in the unbroken chain) then owns 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.
2.32    "Tax Obligations" means income tax and social insurance contribution, payroll tax, payment on account, or other tax-related withholding obligations and requirements in connection with the Awards, including, without limitation, (a) all federal, national, state, foreign and local taxes (including the Participant's FICA obligation) that are required to be withheld by the Company or the employing Affiliate or Subsidiary, (b) the Participant's and, to the extent required by the Company (or the employing Affiliate or Subsidiary), the Company's (or the employing Affiliate or Subsidiary's) fringe benefit tax liability, if any, associated with the grant, vesting, exercise or sale of Shares, and (c) any other Company (or employing Affiliate or Subsidiary) taxes the responsibility for which the Participant has agreed to bear with respect to such Award (including the exercise thereof or issuance of Shares thereunder).
2.33    "Termination of Service" means (a) in the case of an Employee, a cessation of the employee-employer relationship between the Employee and the Company or a Subsidiary or Affiliate for any reason, including, but not by way of limitation, a termination by resignation, discharge, death, Disability, Retirement, or the disaffiliation of a Subsidiary, but excluding any such termination where there is a simultaneous reemployment by the Company or a Subsidiary or Affiliate; (b) in the case of a Consultant, a cessation of the service relationship between the Consultant and the Company or a Subsidiary or Affiliate for any reason, including, but not by way of limitation, a termination by resignation, discharge, death, Disability, or the disaffiliation of a Subsidiary or Affiliate, but excluding any such termination where there is a simultaneous re-engagement of the consultant by the Company or a Subsidiary or Affiliate; and (c) in the case of a Non-Employee Director, a cessation of the Director's service on the Board for any reason, including, but not by way of limitation, a termination by resignation, death, Disability, Retirement or non-reelection to the Board.  For the purpose of administering the Plan, Termination of Service shall be deemed to occur when an Employee is no longer actively employed by the Company or a Subsidiary or Affiliate and will not be extended by any notice of termination period or leave period if the Employee is not actively rendering services during said period.

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SECTION 3
ADMINISTRATION
3.1    The Committee.  The Plan shall be administered by the Committee.
3.2    Authority of the Committee.  It shall be the duty of the Committee to administer the Plan in accordance with the Plan's provisions.  The Committee shall have all powers and discretion necessary or appropriate to administer the Plan and to control its operation, including, but not limited to, the power to (a) determine which Employees shall be granted Awards, (b) prescribe the terms and conditions of the Awards, (c) interpret the Plan and the Awards, (d) adopt such procedures and subplans as are necessary or appropriate to permit participation in the Plan by Employees who are foreign nationals or employed outside of the United States, (e) adopt rules and guidelines for the administration, interpretation and application of the Plan as are consistent therewith, and (f) interpret, amend or revoke any such rules and guidelines.  Notwithstanding the preceding, the Committee shall not implement an Exchange Program without the approval of the holders of a majority of the Shares that are present in person or by proxy and entitled to vote at any Annual or Special Meeting of Stockholders of the Company.
3.3    Delegation by the Committee.  The Committee, on such terms and conditions as it may provide, may delegate all or any part of its authority and powers under the Plan to one or more Directors or officers of the Company.  The Committee may delegate its authority and power under the Plan to one or more officers of the Company, subject to guidelines prescribed by the Committee, but only with respect to Participants who are not Section 16 Persons.
3.4    Decisions Binding.  All determinations and decisions made by the Committee, the Board, and any delegate of the Committee pursuant to the provisions of the Plan shall be final, conclusive, and binding on all persons, and shall be given the maximum deference permitted by law.
3.5    Restrictions and Legends.  The Committee may impose such restrictions on any Shares delivered pursuant to the Plan as it may deem advisable, including, but not limited to, restrictions on transfer or restrictions related to applicable federal securities laws, the requirements of any national securities exchange or system upon which Shares are then listed or traded, or any blue sky or state securities laws.
SECTION 4
SHARES SUBJECT TO THE PLAN
4.1    Number of Shares.  Subject to adjustment as provided in Section 4.3, the total number of Shares available for issuance under the Plan shall not exceed 1,000,000 Shares.  
4.2    Lapsed Awards.  If an Award is settled in cash, or is cancelled, terminates, expires, or lapses for any reason, any Shares subject to such Award again shall be available to be the subject of an Award or award under the Plan.  Shares withheld in satisfaction of Tax Obligations pursuant to Section 10.2 as well as the Shares that represent payment of the Exercise Price shall cease to be available under the Plan.  Shares that have actually been issued under the Plan under any Award shall 

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not be returned to the Plan and shall not become available for future distribution under the Plan; provided, however, that if unvested Shares of Restricted Stock or Restricted Stock Units are repurchased by the Company or are forfeited to the Company, such Shares shall become available for future grant under the Plan.  To the extent an Award under the Plan is paid out in cash rather than Shares, such cash payment shall not result in a reduction of the number of Shares available for issuance under the Plan.  
4.3    Adjustments in Awards and Authorized Shares.  In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the Company, or other change in the corporate structure of the Company affecting the Shares such that an adjustment is determined by the Committee to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the Committee shall, in such manner as it may deem equitable, adjust the number and class of Shares that may be delivered under the Plan, the number, class, and price of Shares (or other property or cash) subject to outstanding Awards.  Notwithstanding the preceding, the number of Shares subject to any Award always shall be a whole number.
SECTION 5 
STOCK OPTIONS
5.1    Grant of Options.  An Option represents the right to purchase a Share at an Exercise Price.  Subject to the terms and provisions of the Plan, Options may be granted to Employees at any time and from time to time as determined by the Committee; provided, however that an Employee may only qualify to be granted an Option so long as: (i) the Employee was not previously an Employee or Director, or the Employee is returning to employment of the Company following a bona-fide period of non-employment; and (ii) the grant of an Award is an inducement material to the Employee’s entering into employment with the Company.  Notwithstanding the foregoing, an Employee may be granted an Option in connection with a merger or acquisition, to the extent permitted by Nasdaq Listing Rule 5635(c)(3) and the official guidance thereunder.  
5.2    Award Agreement.  All Options shall be evidenced by an Award Agreement that shall specify the Exercise Price, the date on which the Options will become exercisable, the expiration date of the Options, the number of Shares, any conditions to exercise the Options, and such other terms and conditions as the Committee shall determine.  
5.3    Exercise Price. 
5.3.1    Nonqualified Stock Options.  The Exercise Price shall be determined by the Committee, but shall be not less than one hundred percent (100%) of the Fair Market Value on the Grant Date.
5.3.2    Substitute Options.  In the event that the Company or a Subsidiary consummates a transaction described in Section 424(a) of the Code (e.g., the acquisition of property or stock from an 

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unrelated corporation), persons who become Employees on account of such transaction may be granted Options in substitution for options granted by their former employer (or parent company or affiliated company of such former employer).  If such substitute Options are granted, the Committee consistent with Section 424(a) of the Code, may determine that each such substitute Options shall have an Exercise Price less than one hundred percent (100%) of the Fair Market Value on the Grant Date.
5.4    Expiration of Options. 
5.4.1    Expiration Dates.  Each Option shall terminate no later than the first to occur of the following events:
(a)    The date for termination of the Option set forth in the written Award Agreement; or
(b)    The expiration of seven (7) years from the Grant Date.
5.4.2    Death of Participant.  Notwithstanding Section 5.4.1, if a Participant dies prior to the expiration of his or her Options, the Committee may provide that his or her Options shall be exercisable for up to twelve (12) months after the date of death.
5.4.3    Committee Discretion.  Subject to the limits of Sections 5.4.1 and 5.4.2, the Committee (a) shall provide in each Award Agreement when each Option expires and becomes unexercisable, and (b) may, after an Option is granted, extend the maximum term of the Option.
5.5    Exercisability of Options.  Options granted under the Plan shall be exercisable at such times and be subject to such restrictions and conditions as the Committee shall determine.  After an Option is granted, the Committee may accelerate the exercisability of the Option.
5.6    Payment.  Options shall be exercised by the Participant giving notice and following such procedures as the Company (or its designee) may specify from time to time.  Exercise of an Option also requires that the Participant make arrangements satisfactory to the Company for full payment of the Exercise Price for the Shares.  All exercise notices shall be given in the form and manner specified by the Company from time to time.
The Exercise Price shall be payable to the Company in full (a) in cash or its equivalent, or (b) subject to the terms of the applicable Award Agreement, by tendering previously acquired Shares having an aggregate Fair Market Value at the time of exercise equal to the total Exercise Price, or (c) by any other means which the Committee determines to both provide legal consideration for the Shares and set forth in the applicable Award Agreement, and to be consistent with the purposes of the Plan.

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SECTION 6 
RESTRICTED STOCK
6.1    Grant of Restricted Stock.  Restricted Stock are Shares that are awarded to a Participant and that during the Restricted Period are forfeitable to the Company upon such conditions as set forth in the applicable Award Agreement.  Subject to the terms and provisions of the Plan, the Committee, at any time and from time to time, may grant Shares of Restricted Stock to Employees as the Committee shall determine; provided, however that an Employee may only qualify to be granted Shares of Restricted Stock so long as: (i) the Employee was not previously an Employee or Director, or the Employee is returning to employment of the Company following a bona-fide period of non-employment; and (ii) the grant of an Award is an inducement material to the Employee’s entering into employment with the Company.  Notwithstanding the foregoing, an Employee may be granted Shares of Restricted Stock in connection with a merger or acquisition, to the extent permitted by Nasdaq Listing Rule 5635(c)(3) and the official guidance thereunder.  
6.2    Restricted Stock Agreement.  Each Award of Restricted Stock shall be evidenced by an Award Agreement that shall specify the Period of Restriction, the number of Shares granted, and such other terms and conditions as the Committee shall determine.  After an Award of Restricted Stock has been made, the Committee may waive all or any part of the applicable Period of Restriction.
6.3    Other Restrictions.  The Committee may impose such other restrictions on Shares of Restricted Stock as it may deem advisable or appropriate, in accordance with this Section 6.3.
6.3.4    General Restrictions.  The Committee may set restrictions based upon continued employment or service with the Company and its Subsidiaries, the achievement of specific performance objectives (Company-wide, departmental, or individual), applicable federal or state securities laws, or any other basis determined by the Committee.
6.4    Voting Rights.  During the Period of Restriction, Participants holding Shares of Restricted Stock granted hereunder may exercise full voting rights with respect to those Shares, unless the Committee determines otherwise.
6.5    Dividends and Other Distributions.  During the Period of Restriction, Participants holding Shares of Restricted Stock shall be entitled to receive all dividends and other distributions paid with respect to such Shares unless otherwise provided in the Award Agreement.  Any such dividends or distribution shall be subject to the same restrictions on transferability and forfeitability as the Shares of Restricted Stock with respect to which they were paid, unless otherwise provided in the Award Agreement.  The Company may require such dividends or other distributions be deposited with the Company until such time as the restrictions on transferability of the corresponding Shares of Restricted Stock lapse.

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SECTION 7 
RESTRICTED STOCK UNITS
7.1    Grant of RSUs.  Restricted Stock Units represent the right to receive Shares, cash, or both (as determined by the Committee) upon satisfaction of such conditions as set forth in the applicable Award agreement.  Restricted Stock Units may be granted to Employees as shall be determined by the Committee; provided, however that an Employee may only qualify to be granted Restricted Stock Units so long as: (i) the Employee was not previously an Employee or Director, or the Employee is returning to employment of the Company following a bona-fide period of non-employment; and (ii) the grant of an Award is an inducement material to the Employee’s entering into employment with the Company.  Notwithstanding the foregoing, an Employee may be granted Restricted Stock Units in connection with a merger or acquisition, to the extent permitted by Nasdaq Listing Rule 5635(c)(3) and the official guidance thereunder.  
7.2    RSU Agreement.  Each Award of Restricted Stock Units shall be evidenced by an Award Agreement that shall specify any vesting conditions and/or performance objectives, the number of Restricted Stock Units granted, and such other terms and conditions as the Committee shall determine.  After an Award of Restricted Stock Units has been granted, the Committee may waive any vesting or performance conditions.  Except as provided in the applicable Award agreement, a Participant shall have with respect to such Restricted Stock Units none of the rights of a holder of Shares unless and until Shares are actually delivered in satisfaction of such Restricted Stock Units.
SECTION 8
GENERAL PROVISIONS
8.1    Impact of Change of Control on Options, Restricted Stock Awards and Restricted Stock Unit Awards.  Notwithstanding any other provision of the Plan or the terms of any Award of Options, Restricted Stock and RSUs, upon a Change of Control, in the event that Awards of Options, Restricted Stock and RSUs are not assumed by the successor corporation or its parent or a subsidiary pursuant to Section 8.3 below, then (a) Options outstanding as of the date of the Change of Control shall become fully vested and exercisable, and (b) Restricted Stock Awards and Restricted Stock Unit Awards shall become fully vested and free of any restrictions (including, without limitation, any performance vesting criteria), subject in each case to any terms and conditions, if any, contained in the Award Agreement evidencing such Award, including but not limited to a condition that such treatment will apply only if the Participant remains employed on the effective date of the Change of Control or has incurred an involuntary termination of employment without cause on account of the Change of Control, as determined by the Committee in its sole discretion, within a period of up to 3 months prior to the effective date of the Change of Control.  Notwithstanding any other provision of the Plan, the Committee, in its discretion, may determine that, upon the occurrence of a Change of Control, each outstanding Award shall be fully vested and terminate within a specified number of days after notice to the Participant, and such Participant shall receive, with respect to each Share subject to any such Award of Restricted Stock and RSU, an amount equal to the Fair Market Value immediately prior to the occurrence of such Change of Control, or with respect to any such Award of Options, the amount equal to the Fair Market Value immediately prior to the occurrence of such 

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Change of Control over the exercise price per share of such Option; such amount in either case to be payable in cash, in one or more kinds of stock or property (including the stock or property, if any, payable in the transaction) or in a combination thereof, as the Committee, in its discretion, shall determine.
8.2    Assumption of Options, Restricted Stock Awards and Restricted Stock Unit Awards Upon Change of Control.  In the event of a Change of Control, the successor company may assume or substitute for an Option, Restricted Stock Award or Restricted Stock Unit Award.  For the purposes of this Section 8.2, an Award of Option, Restricted Stock or RSUs shall be considered assumed or substituted for if following the Change of Control the award confers the right to purchase or receive, for each Share subject to the Option, Restricted Stock Award,  or Restricted Stock Unit Award immediately prior to the Change of Control, the consideration (whether stock, cash or other securities or property) received in the transaction constituting a Change of Control by holders of Shares for each Share held on the effective date of such transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares); provided, however, that if such consideration received in the transaction constituting a Change of Control is not solely common stock of the successor company, the Committee may, with the consent of the successor company, provide that the consideration to be received upon the exercise or vesting of an Option, Restricted Stock Award or Restricted Stock Unit Award, for each Share subject thereto, will be solely common stock of the successor company substantially equal in fair market value to the per share consideration received by holders of Shares in the transaction constituting a Change of Control.  The determination of such substantial equality of value of consideration shall be made by the Committee in its sole discretion and its determination shall be conclusive and binding.  Notwithstanding the foregoing, unless the applicable Award Agreement expressly provides that the provisions of this sentence shall not apply to the Award, in the event of an involuntary termination of a Participant's employment without Cause by such successor company within 24 months of the date of a Change of Control, each Award held by such Participant at the time of the Change of Control shall be accelerated as described in Section 8.1.  For the purposes of this Section 8.2, if "Cause" has not been defined in any applicable Award Agreement, "Cause" shall mean (i) an act of fraud or personal dishonesty undertaken by a Participant in connection with the Participant's responsibilities as an employee that is intended to result in substantial gain or personal enrichment of the Participant at the expense of the Company, (ii) a Participant's conviction of, or plea of nolo contendere to, a felony, (iii) a Participant's gross misconduct in connection with the performance or failure of performance of a material component of the Participant's responsibilities as an employee that is materially injurious to the Company, or (iv) a Participant's continued substantial violations of his or her employment duties after the Participant has received a written demand for performance from the Company which specifically sets forth the factual basis for the Company's belief that the Participant has not substantially performed such duties.
8.3    Deferrals.  The Committee may permit a Participant to defer receipt of the payment of cash or the delivery of Shares that otherwise would be due to such Participant under an Award.  Any such deferral elections shall be subject to such rules and procedures as shall be determined by the Committee.

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8.4    No Effect on Employment or Service.  Nothing in the Plan shall interfere with or limit in any way the right of the Company or a Subsidiary to terminate any Participant's employment or service at any time, with or without cause, subject to compliance with local law.  For purposes of the Plan, transfer of employment of a Participant between the Company and any one of its Subsidiaries (or between Subsidiaries) shall not be deemed a Termination of Service.
8.5    Cancellation and Rescission of Awards.  The following provisions of this Section 8.5 shall apply to Awards granted to individuals who are, were or become Section 16 Persons.  The Committee or the Board may cancel, rescind, forfeit, suspend or otherwise limit or restrict any unexpired Award at any time if the Section 16 Person engages in "Detrimental Activity" (as defined below).  Furthermore, in the event a Section 16 Person engages in Detrimental Activity at any time prior to or during the six months after any exercise of an Award, lapse of a restriction under an Award or delivery of Common Stock pursuant to an Award, such exercise, lapse or delivery may be rescinded until the later of (i) two years after such exercise, lapse or delivery or (ii) two years after such Detrimental Activity.  Upon such rescission, the Company at its sole option may require the Section 16 Person to (i) deliver and transfer to the Company the shares of Stock received by the Section 16 Person upon such exercise, lapse or delivery, (ii) pay to the Company an amount equal to any realized gain received by the Section 16 Person from such exercise, lapse or delivery, (iii) pay to the Company an amount equal to the market price (as of the exercise, lapse or delivery date) of the Stock acquired upon such exercise, lapse or delivery minus the respective price paid upon exercise, lapse or delivery, if applicable or (iv) pay the Company an amount equal to any cash awarded with respect to an Award.  The Company shall be entitled to set-off any such amount owed to the Company against any amount owed to the Section 16 Person by the Company.  As used in this Section 8.5, "Detrimental Activity" shall include: (i) the failure to comply with any term set forth in the Company's Employment Agreement; (ii) any activity that results in termination of the Section 16 Officer's employment for Cause; or (iii) the Section 16 Person being convicted of, or entering a guilty plea with respect to a crime connected with the Company.
8.6    Participation.  No Employee or Consultant shall have the right to be selected to receive an Award under this Plan, or, having been so selected, to be selected to receive a future Award.
8.7    Successors.  All obligations of the Company under the Plan, with respect to Awards granted hereunder, shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business or assets of the Company.
8.8    Beneficiary Designations.  If permitted by the Committee, a Participant under the Plan may name a beneficiary or beneficiaries to whom any vested but unpaid Award shall be paid in the event of the Participant's death.  Each such designation shall revoke all prior designations by the Participant and shall be effective only if given in a form and manner acceptable to the Committee.  In the absence of any such designation, any vested benefits remaining unpaid at the Participant's death shall be paid to the Participant's estate and, subject to the terms of the Plan and of the applicable Award Agreement, any unexercised vested Award may be exercised by the administrator or executor of the Participant's estate.

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8.9    Limited Transferability of Awards.  No Award granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will, by the laws of descent and distribution, to a Participant's spouse, former spouse or dependent pursuant to a court-approved domestic relations order which relates to the provision of child support, alimony payments or marital property rights or to the limited extent provided in this Section 8.9.  All rights with respect to an Award granted to a Participant shall be available during his or her lifetime only to the Participant.  Notwithstanding the foregoing, the Participant may, in a manner specified by the Committee, if the Committee so permits, transfer an Award by bona fide gift and not for any consideration, to (i) a member or members of the Participant's immediate family, (ii) a trust established for the exclusive benefit of the Participant and/or member(s) of the Participant's immediate family, (iii) a partnership, limited liability company or other entity whose only partners or members are the Participant and/or member(s) of the Participant's immediate family, or (iv) a foundation in which the Participant and/or member(s) of the Participant's immediate family control the management of the foundation's assets.  Any such transfer shall be made in accordance with such procedures as the Committee may specify from time to time.
8.10    No Rights as Stockholder.  Except to the limited extent provided in Sections 6.4 and 6.5, no Participant (nor any beneficiary) shall have any of the rights or privileges of a stockholder of the Company with respect to any Shares issuable pursuant to an Award (or exercise thereof), unless and until certificates representing such Shares shall have been issued, recorded on the records of the Company or its transfer agents or registrars, and delivered to the Participant (or beneficiary).
8.11    Leaves of Absence.  Unless otherwise expressly determined by the Committee or required by applicable law, vesting of Awards and/or any Shares issuable pursuant to an Award (or exercise thereof), will be treated as follows during a leave of absence of a Participant:
8.11.1    Statutory Leave of Absence.  Vesting credit will continue during a leave of absence if the leave satisfies each of the following requirements: (a) the leave is approved by the Company, (b) the leave is mandated by applicable law, and (c) the Participant takes the leave in accordance with such law and complies with applicable Company leave policies (a leave meeting all such requirements being a "Statutory Leave of Absence").
8.11.2    Approved Personal Leave of Absence.  Vesting credit will not continue (and instead will be tolled or suspended) during any leave of absence that is not a Statutory Leave of Absence (a "Personal Leave of Absence").  For purposes of clarification, a Participant will not be considered to have incurred a Termination of Service during any Company-approved Personal Leave of Absence so long as the Participant complies with applicable law and applicable Company leave policies.
SECTION 9
AMENDMENT, TERMINATION, AND DURATION
9.1    Amendment, Suspension, or Termination.  The Board may amend, suspend or terminate the Plan, or any part thereof, at any time and for any reason.  The amendment, suspension, or termination of the Plan shall not, without the consent of the Participant, alter or impair any rights 

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or obligations under any Award theretofore granted to such Participant.  No Award may be granted during any period of suspension or after termination of the Plan.
9.2    Duration of the Plan.  The Plan shall be effective as of the Effective Date, and, subject to Section 9.1, shall remain in effect until the 10-year anniversary of the Effective Date.  
SECTION 10
TAX WITHHOLDING
10.1    Withholding Requirements.  Prior to the delivery of any Shares or cash pursuant to an Award (or exercise thereof), the Company shall have the power and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy federal, national, foreign, state, and local taxes (including the Participant's FICA, income tax, national insurance, social insurance, payment on account, payroll taxes or other tax-related withholding or similar insurance or tax obligations) required to be withheld with respect to such Award (or exercise thereof).
10.2    Withholding Arrangements.  The Committee, pursuant to such procedures as it may specify from time to time, may permit a Participant to satisfy his or her Tax Obligations, in whole or in part by (a) electing to have the Company withhold otherwise deliverable Shares, or (b) delivering to the Company already-owned Shares having a Fair Market Value equal to the amount required to be withheld or remitted.  The amount of the Tax Obligations shall be deemed to include any amount which the Committee agrees may be withheld at the time the election is made, not to exceed the amount determined by using the maximum federal, state or local marginal income tax rates applicable to the Participant or the Company, as applicable, with respect to the Award on the date that the amount of tax or social insurance liability to be withheld or remitted is to be determined.  The Fair Market Value of the Shares to be withheld or delivered shall be determined as of the date that the Tax Obligations are required to be withheld or remitted, or (c) by any other procedures set forth in the applicable Award Agreement.
SECTION 11 
LEGAL CONSTRUCTION
11.1    Gender and Number.  Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine; the plural shall include the singular and the singular shall include the plural.
11.2    Severability.  In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.
11.3    Requirements of Law.  The granting of Awards and the issuance of Shares under the Plan shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.

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11.4    Securities Law Compliance.  With respect to Section 16 Persons, transactions under this Plan are intended to qualify for the exemption provided by Rule 16b-3.  To the extent any provision of the Plan, Award Agreement or action by the Committee fails to so comply, it shall be deemed null and void, to the extent permitted by law and deemed advisable or appropriate by the Committee.
11.5    Code Section 409A.  Unless otherwise specifically determined by the Committee, the Committee shall comply with Code Section 409A in establishing the rules and procedures applicable to deferrals in accordance with Section 8.3 and taking or permitting such other actions under the terms of the Plan that otherwise would result in a deferral of compensation subject to Code Section 409A.
11.6    Governing Law.  The Plan and all Award Agreements shall be construed in accordance with and governed by the laws of the State of Delaware (with the exception of its conflict of laws provisions).
11.7    Captions.  Captions are provided herein for convenience only, and shall not serve as a basis for interpretation or construction of the Plan.

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