Document:

exv10w7

Exhibit 10.7

NON-EMPLOYEE DIRECTOR COMPENSATION 

On January 25, 2010, upon the recommendation of the Compensation Committee, the Board of Directors
of Quiksilver, Inc. (the “Company”) approved the following revised compensation structure for
non-employee directors, subject to stockholder approval at the annual meeting to be held on March
26, 2010.

Cash Compensation 

Effective March 26, 2010, non-employee directors of the Company will receive the following cash
compensation:

	 	-	 	$27,000 annual cash retainer for the Chair of the Audit Committee.
	 
	 	-	 	$18,000 annual cash retainer for the Chair of other Board committees.
	 
	 	-	 	$13,500 cash retainer per committee membership, excluding Chairs.

The annual cash retainers will be payable quarterly.

Equity Compensation 

          Effective March 26, 2010, under the Director Automatic Grant Program of our 2000
Stock Incentive Plan, we make automatic equity awards to our non-employee directors consisting of
an option to purchase 25,000 shares of common stock and 15,000 shares of restricted stock (i) on
the date an individual first commences service as a non-employee director and (ii) on the date of
each annual meeting of our stockholders, provided the non-employee director continues to serve as a
non-employee director after such meeting and has served as a non-employee board member for at least
six months.

          Each option grant under the Director Automatic Grant Program has an exercise price
per share equal to the fair market value per share of our common stock on the grant date and has a
maximum term of seven years, subject to earlier termination following the optionee’s cessation of
service on the board. Each option is immediately exercisable and fully vested for all of the option
shares. Each option grant held by an optionee upon his or her termination of board service remains
exercisable for up to a twelve (12)-month period following their termination date.

          Each restricted stock award vests in a series of three successive equal annual
installments over the period beginning with the date of such award. The vesting dates with respect
to the annual awards of restricted stock occur on the first, second and third anniversaries of the
award date, or, if earlier, the day immediately preceding the date of our annual meeting of
stockholders for each such year. An initial award of restricted stock vests on the first, second
and third anniversaries of the award date. Non-employee directors will not vest in any additional
shares of restricted stock following his or her cessation of service as a board member; provided,
however, that if such cessation of board service occurs by reason of his or her death or
disability, then all outstanding shares of restricted stock immediately vest. Restricted stock
awards also vest in full on an accelerated basis upon the occurrence of certain changes in control
of Quiksilver, Inc. during the period of board service. As the restricted stock awards vest, the
underlying shares of common stock cease to be subject to any restrictions, other than applicable
securities laws.

Clothing Allowance and Expense Reimbursement 

          Non-employee directors receive an annual allowance of up to $2,000 to purchase
apparel and other Company products. Directors are reimbursed for travel and other out-of-pocket
expenses incurred by them that are incidental to their service as directors.exv10w67

Exhibit 10.67

AMENDMENT NO. 7 TO THE

APPLIED MATERIALS, INC.

EXECUTIVE DEFERRED COMPENSATION PLAN

(April 1, 1995 Restatement)

     APPLIED MATERIALS, INC., having adopted the Applied Materials, Inc. Executive Deferred
Compensation Plan (the “Plan”) effective as of January 1, 1993, and having amended and/or restated
the Plan on several occasions, hereby again amends the Plan, as follows:

     1. Section 3.3 is amended in its entirety to read as follows:

     “3.3 Deemed Investment of Accounts. Although no assets will be segregated or
otherwise set aside with respect to a Participant’s Account, the amount that is
ultimately payable to the Participant with respect to his or her Account shall be
determined as if such Account had been invested in such manner as the Committee, in
its sole discretion, may specify from time to time. The Committee, in its sole
discretion, shall adopt (and may modify from time to time) such rules and procedures
as it deems necessary or appropriate to implement the deemed investment of the
Participants’ Accounts. The exact amount to be credited (or debited) as deemed
earnings, gains or losses with respect to any Participant’s Account will be
determined by the Committee under such formulae as the Committee, in its sole
discretion, adopts from time to time. Notwithstanding any contrary Plan provision,
in no event may the methods or formulae selected by the Committee to calculate and
credit (or debit) deemed earnings, gains or losses on Participants’ Accounts cause
the Plan to be considered “materially modified” under Section 409A of the Code.”

     2. The first sentence of Section 4.3 is amended by deleting the phrase “crediting of
deemed interest” therefrom and substituting the phrase “crediting (or debiting) of deemed
earnings, gains or losses” therefor.

     3. The phrase “deemed interest” is deleted and the phrase “deemed earnings, gains or
losses” is substituted therefor everywhere it appears in the Plan.

 

 

     4. The phrase “credited with deemed interest” is deleted and the phrase “credited (or
debited) with deemed earnings, gains or losses” is substituted therefor everywhere it
appears in the Plan.

     5. This Amendment No. 7 to the Plan is effective as of January 1, 2010.

     In Witness Whereof, Applied Materials, Inc., by its duly authorized officer, has executed this
Amendment No. 7 to the Plan on the date specified below.

	 	 	 	 	 
	 	Applied Materials, Inc.

 	 
	Dated:  April 26, 2010 	By  	/s/ Ron Miller
 	 
	 	 	Ron Miller 	 
	 	 	Corporate Vice President, Global Rewards 	 
	 

2exv10w68

Exhibit 10.68

AMENDMENT NO. 3 TO THE

APPLIED MATERIALS, INC.

2005 EXECUTIVE DEFERRED COMPENSATION PLAN

     APPLIED MATERIALS, INC., having adopted the Applied Materials, Inc. 2005 Executive Deferred
Compensation Plan (the “Plan”) effective as of January 1, 2005, and having amended and/or restated
the Plan on several occasions, hereby again amends the Plan, as follows:

     1. Effective as of December 8, 2008, Section 1.11 is amended by deleting the phrase “Global
Executive Incentive Plan” therefrom and substituting the phrase “Applied Incentive Plan” therefor.

     2. Effective as of January 1, 2005, the first sentence of Section 3.2 is amended by deleting
the word “last” therefrom.

     3. Section 3.7 is amended in its entirety to read as follows:

     “3.7 Deemed Investment of Accounts. Although no assets will be segregated or
otherwise set aside with respect to a Participant’s Account, the amount that is
ultimately payable to the Participant with respect to his or her Account shall be
determined as if such Account had been invested in such manner as the Committee, in
its sole discretion, may specify from time to time. The Committee, in its sole
discretion, shall adopt (and may modify from time to time) such rules and procedures
as it deems necessary or appropriate to implement the deemed investment of the
Participants’ Accounts. The exact amount to be credited (or debited) as deemed
earnings, gains or losses with respect to any Participant’s Account will be
determined by the Committee under such formulae as the Committee, in its sole
discretion, adopts from time to time.”

     4. The first sentence of Section 4.3 is amended by deleting the phrase “crediting of
deemed interest” therefrom and substituting the phrase “crediting (or debiting) of deemed
earnings, gains or losses” therefor.

 

 

     5. The title of Section 5.8.4 is amended by deleting the word “Interest” therefrom and
substituting the word “Investment” therefor.

     6. The phrase “deemed interest” is deleted and the phrase “deemed earnings, gains or
losses” is substituted therefor everywhere it appears in the Plan.

     7. The phrase “credited with deemed interest” is deleted and the phrase “credited (or
debited) with deemed earnings, gains or losses” is substituted therefor everywhere it
appears in the Plan.

     8. Except as otherwise specified above, this Amendment No. 3 to the restated Plan is
effective as of January 1, 2010.

     In
Witness Whereof, Applied Materials, Inc., by its duly authorized officer, has executed this
Amendment No. 3 to the restated Plan on the date specified below.

	 	 	 	 	 
	 	Applied Materials, Inc.

 	 
	Dated:  April 26, 2010 	By  	/s/ Ron Miller
 	 
	 	 	Ron Miller 	 
	 	 	Corporate Vice President, Global Rewards 	 
	 

2exv10w69

Exhibit 10.69

APPLIED MATERIALS, INC.

SENIOR EXECUTIVE BONUS PLAN

(May 10, 2010 Restatement)

SECTION 1

ESTABLISHMENT AND PURPOSE

     1.1 Purpose. Applied Materials, Inc. having established the Applied Materials, Inc. Senior Executive
Bonus Plan (the “Plan”) effective as of September 23, 1994, and having subsequently amended and
restated the Plan, hereby amends and restates the Plan effective as of September 16, 2008, as
follows. The Plan is intended to increase shareholder value and the success of the Company by
motivating key executives (a) to perform to the best of their abilities, and (b) to achieve the
Company’s objectives. The Plan’s goals are to be achieved by providing such executives with
incentive awards based on the achievement of goals relating to the performance of the Company and
its individual business units. The Plan is intended to permit the payment of bonuses that qualify
as performance-based compensation under Code Section 162(m).

     1.2 Effective Date. The Plan is subject to the approval of a majority of the shares of the Company’s common
stock that are present in person or by proxy and entitled to vote at the 2007 Annual Meeting of
Stockholders.

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 “Actual Award” means as to any Performance Period, the actual (if any) payable to a Participant for the
Performance Period. Each Actual Award is determined by the Payout Formula for the Performance
Period, subject to the Committee’s authority under Section 3.5 to reduce the award otherwise
determined by the Payout Formula.

     2.2 “Affiliate” means any corporation or other entity (including, but not limited to, partnerships and joint
ventures) controlled by the Company.

     2.3 “Base Salary” means as to any Performance Period, 100% of the Participant’s annualized salary rate on the
last day of the Performance Period. Such Base Salary shall be before both (a) deductions for taxes
or benefits, and (b) deferrals of compensation pursuant to Company-sponsored plans.

     2.4 “Board” means the Company’s Board of Directors.

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

     2.6 “Committee” means the committee appointed by the Board (pursuant to Section 5.1) to administer the Plan.
The Committee shall consist of no fewer than two (2) members of the Board.

     2.7 “Company” means Applied Materials, Inc., a Delaware corporation.

     2.8 “Customer Satisfaction MBOs” means as to any Participant for any Performance Period, the objective and measurable
individual goals set by a “management by objectives” process and approved by the Committee, which
goals relate to the satisfaction of external or internal customer requirements and/or ratings.

     2.9 “Determination Date” means the latest possible date that will not jeopardize a Target Award or Actual Award’s
qualification as performance-based compensation under Section 162(m) of the Code.

     2.10 “Disability” means a permanent and total disability determined in accordance with standards adopted by the
Committee from time to time.

     2.11 “Earnings Per Share” means as to any Performance Period, Net Income, divided by a weighted average number of common
shares outstanding and dilutive common equivalent shares deemed outstanding.

     2.12 “Fiscal Year” means the fiscal year of the Company.

     2.13 “Individual MBOs” means as to a Participant for any Performance Period, the objective and measurable goals set
by a “management by objectives” process and approved by the Committee, in its discretion.

     2.14 “Intentional Misconduct” means a Participant’s deliberate engagement in any one
or more of the following: (a) fraud, misappropriation, embezzlement or any other act or acts of
similar gravity resulting or intended to result directly or indirectly in substantial personal
enrichment to the Participant at the expense of the Company; (b) a material violation of a federal,
state or local law or regulation applicable to the Company’s business that has a significant
negative effect on the Company’s financial results; or (c) a material breach of the Participant’s
fiduciary duty owed to the Company that has a significant negative effect on the Company’s
financial results; provided, however, that a Participant’s exercise of judgment or actions (or
abstention from action), and/or decision-making will not constitute Intentional Misconduct if such
judgment, action (or abstention from action) and/or decision is, in the good faith determination of
the Board, reasonable based on the facts and circumstances known to the Participant at the time of
such judgment, action (or abstention from action) and/or decision; and such judgment, action (or
abstention from action) and/or decision is in an area or situation in which (i) discretion must be
exercised by the Participant or (ii) differing views or opinions may apply.

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     2.15 “Market Share” means as to any Performance Period, the Company’s or a business unit’s percentage of a market
segment with respect to a product.

     2.16 “Maximum Award” means as to any Participant for any Performance Period, $5 million. The Maximum Award is the
maximum amount which may be paid to a Participant for any Performance Period.

     2.17 “Net Income” means as to any Performance Period, the income after taxes for the Performance Period
determined in accordance with generally accepted accounting principles.

     2.18 “New Orders” means as to any Performance Period, the firm orders for a system, product, part, or service
that are being recorded for the first time as defined in the Company’s Order Recognition Policy.

     2.19 “Operating Profit” means as to any Performance Period, the difference between revenue and related costs and
expenses, excluding income derived from sources other than regular activities and before income
deductions.

     2.20 “Participant” means as to any Performance Period, an officer of the Company or of an Affiliate who has been
selected by the Committee for participation in the Plan for that Performance Period.

     2.21 “Payout Formula” means as to any Performance Period, the formula or payout matrix established by the Committee
pursuant to Section 3.4 in order to determine the Actual Awards, if any, to be paid to
Participants. The formula or matrix may differ from Participant to Participant.

     2.22 “Performance Goals” means the goal(s) (or combined goal(s)) determined by the Committee, in its discretion, to be
applicable to a Participant for a Performance Period. As determined by the Committee, the
Performance Goals applicable to each Participant shall provide for a targeted level or levels of
achievement using one or more of the following measures: (a) Revenue, (b) Customer Satisfaction
MBOs, (c) Earnings Per Share, (d) Individual MBOs, (e) Market Share, (f) Net Income, (g) New
Orders, (h) Operating Profit, (i) Return on Designated Assets, (j) Return on Equity, (k) Return on
Sales, and (l) Total Shareholder Return. Any criteria used may be measured, as applicable, (i) in
absolute terms, (ii) in relative terms, including, but not limited to, the passage of time and/or
against other companies or financial metrics, (iii) on a per share and/or share per capita basis,
(iv) against the performance of the Company as a whole or against particular segments or products
of the Company and/or (v) on a pre-tax or after-tax basis. Prior to the Determination Date, the
Committee shall determine whether any element(s) (for example, but not by way of limitation, the
effect of mergers or acquisitions) shall be included in or excluded from the calculation of any
Performance Goal with respect to any Participants, whether or not such determinations result in any
Performance Goal being measured on a basis other than generally accepted accounting principles.

     2.23 “Performance Period” means any Fiscal Year or such other period longer than a Fiscal Year but not in excess of
three Fiscal Years, as determined by the Committee in its sole discretion. With respect to any
Participant, there shall exist no more than four (4) Performance Periods at any one time.

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     2.24 “Retirement” means, with respect to any Participant, a termination of his or her employment with the
Company and all of its Affiliates after: (a) obtaining at least sixty (60) years of age and whose
age plus Years of Service with the Company is not less than seventy (70), or (b) obtaining at least
sixty-five (65) years of age.

     2.25 “Return on Designated Assets” means as to any Performance Period, Net Income divided by the average of beginning and ending
designated Company or business unit assets.

     2.26 “Return on Equity” means as to any Performance Period, the percentage equal to Net Income divided by average
stockholder’s equity, determined in accordance with generally accepted accounting principles.

     2.27 “Return on Sales” means as to any Performance Period, the percentage equal to Net Income, divided by Revenue.

     2.28 “Revenue” means net sales for the Performance Period, determined in accordance with generally accepted
accounting principles.

     2.29 “Section 16 Officer” means a person who is an officer of the Company within the
meaning of Section 16 of the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

     2.30 “Section 409A” means Section 409A of the Internal Revenue Code of 1986, as
amended and the regulations and guidance thereunder, as they may be amended or modified from time
to time.

     2.31 “Target Award” means the target award payable under the Plan to a Participant for the Performance Period,
expressed as a percentage of his or her Base Salary, as determined by the Committee in accordance
with Section 3.3.

     2.32 “Total Shareholder Return” means as to any Performance Period, the total return (change in share price plus reinvestment
of any dividends) of a share of the Company’s common stock.

     2.33 “Years of Service” means the number of months (or a fraction thereof) from a
Participant’s latest hire date with the Company or its Affiliate to the date in question, divided
by twelve (12). The Participant’s latest hire date will be determined after giving effect to the
non-401(k) plan principles of North American Human Resources Policy No. 2-06, Re-Employment of
Former Employees/Bridging of Service, as such policy may be amended, revised or superseded from
time to time.

SECTION 3

SELECTION OF PARTICIPANTS AND DETERMINATION OF AWARDS

     3.1 Selection of Participants. On or prior to the Determination Date, the Committee, in its sole discretion, shall select
the officers of the Company who shall be Participants for the Performance Period. The Committee,
in its sole discretion, also may designate as Participants one or

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more individuals (by name or
position) who are expected to become officers during a Performance Period. Participation in the
Plan is in the sole discretion of the Committee, and on a Performance Period by Performance Period
basis. Accordingly, an officer who is a Participant for a given Performance Period in no way is
guaranteed or assured of being selected for participation in any subsequent Performance Period or
Periods.

     3.2 Determination of Performance Goals. On or prior to the Determination Date, the Committee, in its sole discretion, shall
establish the Performance Goals for each Participant for the Performance Period. Such Performance
Goals shall be set forth in writing.

     3.3 Determination of Target Awards. On or prior to the Determination Date, the Committee, in its sole discretion, shall
establish a Target Award for each Participant. Each Participant’s Target Award shall be determined
by the Committee in its sole discretion, and each Target Award shall be set forth in writing.

     3.4 Determination of Payout Formula or Formulae. On or prior to the Determination Date, the Committee, in its sole discretion, shall
establish a Payout Formula or Formulae for purposes of determining the Actual Award, if
any, payable to each Participant. Each Payout Formula shall (a) be in writing, (b) be based on a
comparison of actual performance to the Performance Goals, (c) provide for the payment of a
Participant’s Target Award if the Performance Goals for the Performance Period are achieved, and
(d) provide for an Actual Award greater than or less than the Participant’s Target Award, depending
upon the extent to which actual performance exceeds or falls below the Performance Goals.
Notwithstanding the preceding, no Participant’s Actual Award under the Plan may exceed his or her
Maximum Award.

     3.5 Determination of Actual Awards. After the end of each Performance Period, the Committee shall certify in writing (for
example, in its meeting minutes) the extent to which the Performance Goals applicable to each
Participant for the Performance Period were achieved or exceeded, as determined by the Committee.
The Actual Award for each Participant shall be determined by applying the Payout Formula to the
level of actual performance that has been certified by the Committee. Notwithstanding any contrary
provision of the Plan, (a) the Committee, in its sole discretion, may eliminate or reduce the
Actual Award payable to any Participant below that otherwise would be payable under the Payout
Formula, (b) if a Participant terminates employment with the Company prior to the end of a
Performance Period for a reason other than Retirement, Disability or death, he or she shall not be
entitled to the payment of an Actual Award for the Performance Period, and (c) the Board, in its
sole discretion, may require a Participant to forfeit, return or reimburse the Company all or a
portion of his or her Actual Award in accordance with Section 4.5 below.

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SECTION 4

PAYMENT OF AWARDS

     4.1 Right to Receive Payment. Each Actual Award that may become payable under the Plan shall be paid solely from the
general assets of the Company. Nothing in this Plan shall be construed to create a trust or to
establish or evidence any Participant’s claim of any right other than as an unsecured general
creditor with respect to any payment to which he or she may be entitled.

     4.2 Timing of Payment. Payment of each Actual Award shall be made after the end of the Performance Period during
which the Actual Award was earned but no later than the fifteen (15th) day of the third
(3rd) month after the end of the Fiscal Year in which such Performance Period ended. In
addition, if the relevant Performance Period exceeds one Fiscal Year, the payment of each Actual
Award for such Performance Period shall be made within the time period set forth in the prior
sentence, but in all events after the end of the Performance Period but on or before December 31 of
the calendar year in which the Performance Period ends.

     4.3 Form of Payment. Each Actual Award normally shall be paid in cash (or its equivalent) in a single lump sum.
However, the Committee, in its sole discretion, may declare any Actual Award, in whole or in part,
payable in restricted stock granted under the Company’s Employee Stock Incentive Plan. The number
of shares granted shall be determined by dividing the cash amount foregone by the fair market value
of a share on the date that the cash payment otherwise would have been made. For this purpose,
“fair market value” shall mean the closing price on the NASDAQ/National Market for the day in
question. Any restricted stock so awarded shall vest over a period of not more than four years,
subject to acceleration for termination of employment due to death, Disability, or Retirement.

     4.4 Payment in the Event of Death. If a Participant dies prior to the payment of an Actual Award earned by him or her prior to
death for a prior Performance Period, the Actual Award shall be paid to his or her estate.

     4.5 Clawback in Connection with a Material Negative Financial Restatement. Pursuant
to the Company’s clawback policy, the Board, in its sole discretion, may require a Participant to
forfeit, return or reimburse the Company all or a portion of his or her Actual Award that is paid
on or after December 7, 2009, if (i) the Participant is or was a Section 16 Officer during the
applicable Performance Period, and (ii) the Participant deliberately engaged in Intentional
Misconduct that was determined by the Board, in its sole discretion, to be the primary cause of a
material negative restatement of a Company financial statement that was filed with the U.S.
Securities and Exchange Commission and such financial statement, as originally filed, is one of the
Company’s three (3) most recently filed annual financial statements. The portion of the Actual
Award, if any, that a Participant may be required to forfeit, return or reimburse will be
determined by the Board, in its sole discretion, but will be no more than the after-tax portion of
the Actual Award that was (1) in excess of the
Actual Award he or she would have received had the Company’s financial results been calculated
under the restated financial statements, and (2) paid within the period beginning on the date the
Committee determines the Actual Award (in accordance with Section 3.5 of the Plan) and ending on
the date that is twelve (12) months after the original filing of the financial statement that
subsequently was restated.

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SECTION 5

ADMINISTRATION

     5.1 Committee is the Administrator. The Plan shall be administered by the Committee. The Committee shall consist of not less
than two (2) members of the Board. The members of the Committee shall be appointed from time to
time by, and serve at the pleasure of, the Board. Each member of the Committee shall qualify as an
“outside director” under Section 162(m) of the Code. If it is later determined that one or more
members of the Committee do not so qualify, actions taken by the Committee prior to such
determination shall be valid despite such failure to qualify. Any member of the Committee may
resign at any time by notice in writing mailed or delivered to the Secretary of the Company. As of
the Effective Date of the Plan, the Plan shall be administered by the Human Resources and
Compensation Committee of the Board.

     5.2 Committee Authority. 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 officers shall be granted awards, (b) prescribe the terms and conditions of
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 officers who are foreign nationals
or employed outside of the United States, (e) adopt rules for the administration, interpretation
and application of the Plan as are consistent therewith, and (f) interpret, amend or revoke any
such rules.

     5.3 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.

     5.4 Delegation by the Committee. The Committee, in its sole discretion and on such terms and conditions as it may provide,
may delegate all or part of its authority and powers under the Plan to one or more directors and/or
officers of the Company; provided, however, that the Committee may not delegate its authority
and/or powers with respect to awards that are intended to qualify as performance-based compensation
under Section 162(m) of the Code.

     5.5 Tax Withholding. The Company shall withhold all applicable taxes from any payment, including any federal,
FICA, state, and local taxes.

SECTION 6

GENERAL PROVISIONS

     6.1 No Effect on Employment. Nothing in the Plan shall interfere with or limit in any way the right of the Company or an
Affiliate, as applicable, to terminate any Participant’s employment or service at any time, with or
without cause. For purposes of the Plan, transfer of employment of a Participant between the
Company and any one of its Affiliates (or between Affiliates) shall not be deemed a termination of
employment. Employment with the Company and its Affiliates is on an at-will basis only. The
Company expressly reserves the right, which may be exercised at any time and without regard to when
during or after a Performance Period such exercise

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occurs, to terminate any individual’s employment
with or without cause, and to treat him or her without regard to the effect which such treatment
might have upon him or her as a Participant.

     6.2 Section 409A. It is intended that all bonuses payable under this Plan will be exempt from the
requirements of Section 409A pursuant to the “short-term deferral” exemption or, in the
alternative, to comply with the requirements of Section 409A so that none of the payments and
benefits to be provided under this Plan will be subject to the additional tax imposed under
Section 409A, and any ambiguities herein shall be interpreted to so comply or be exempt. Each
payment and benefit payable under this Plan is intended to constitute a separate payment for
purposes of Section 1.409A-2(b)(2) of the Treasury Regulations. The Company may, in good faith and
without the consent of any Participant, make any amendments to this Plan and take such reasonable
actions which it deems necessary, appropriate or desirable to avoid imposition of any additional
tax or income recognition under Section 409A prior to actual payment to the Participant.

     6.3 Participation. No Employee 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.

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

     6.5 Successors. All obligations of the Company and any Affiliate under the Plan, with respect to awards
granted hereunder, shall be binding on any successor to the Company and/or such Affiliate, 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
or such Affiliate.

     6.6 Nonassignability. A Participant shall have no right to assign or transfer any interest under this Plan.

     6.7 Nontransferability 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. All rights
with respect to an award granted to a Participant shall be available during his or her lifetime
only to the Participant.

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     6.8 Deferrals. The Committee, in its sole discretion, may permit a Participant to defer receipt of the
payment of cash that would otherwise be delivered to a Participant under the Plan. Any such
deferral elections shall be subject to such rules and procedures as shall be determined by the
Committee in its sole discretion.

     6.9 Governing Law. The Plan and all award agreements shall be construed in accordance with and governed by the
laws of the State of California, excluding its conflicts of laws provisions.

SECTION 7

AMENDMENT AND TERMINATION

     7.1 Amendment and Termination. The Board may amend or terminate the Plan at any time and for any reason; provided,
however, that if and to the extent required to ensure the Plan’s qualification under Code
Section 162(m), any such amendment shall be subject to stockholder approval.

9

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