Document:

Exhibit 10.13 Form of Restricted Stock Unit Agreement

Exhibit 10.13
	
			
	Grant 
Date
	Grant 
Number
	Units Granted

	 
	 
	 

Participant:
Employee ID Number:

[FORM OF]

EMC CORPORATION
Amended and Restated 2003 Stock Plan
Restricted Stock Unit Agreement

1.    Grant of Restricted Stock Units

EMC Corporation, a Massachusetts corporation (the “Company”), hereby grants to you (the “Participant”), on the grant date referenced above (the “Grant Date”), a restricted stock unit award (the “Award”) with respect to the number of units of the Company’s common stock referenced under “Units Granted” above (the “Units”).  The Award is made pursuant to and is subject to the provisions of this Restricted Stock Unit Agreement and the Company’s Amended and Restated 2003 Stock Plan, as amended from time to time (the “Plan”).  Capitalized terms used but not defined in this Restricted Stock Unit Agreement shall have the meanings ascribed to them in the Plan.  To complete this Award, please promptly accept this Restricted Stock Unit Agreement.  If you fail to do so, this Award shall be cancelled and terminated effective as of the Grant Date.

2.    Units

The Participant’s rights to the shares of the Company’s common stock (“Shares”) underlying the Units are subject to the restrictions described in this Restricted Stock Unit Agreement and the Plan, in addition to such restrictions, if any, as may be imposed by law.

3.    Forfeiture Restrictions

The Units are subject to certain forfeiture restrictions, as described below.  These restrictions are referred to in this Restricted Stock Unit Agreement as the “Forfeiture Restrictions.”  The Forfeiture Restrictions lapse with respect to Units as set forth in Section 4 below and the applicable provisions of the Plan.  To the extent Units are no longer subject to the Forfeiture Restrictions, they are referred to in this Restricted Stock Unit Agreement as “Vested Units” and are treated as set forth in Section 5 below. Units subject to the Forfeiture Restrictions are referred to in this Restricted Stock Unit Agreement as “Unvested Units.”    

No Unvested Units may be sold, assigned, transferred, pledged or otherwise disposed of except as provided in this Restricted Stock Unit Agreement and in the Plan.  Any attempt to dispose of any Units in contravention of this Restricted Stock Unit Agreement or the Plan shall be null and void and without effect.

In the event that the Participant’s Service Relationship terminates for any reason, except as otherwise provided in the Plan or this Restricted Stock Unit Agreement with respect to termination by reason of death or Disability, all Unvested Units shall be automatically and immediately forfeited. Notwithstanding the foregoing, if the termination of the  Participant’s Service Relationship other than for death or Disability qualifies as a “separation from service” under Section 409A of the Internal Revenue Code of 1986, the Company may permit the delivery of shares  to continue in accordance with Section 4 below during such period, if any, that the Participant receives pay continuation from the Company or any Subsidiary of the Company or over such other period as the Company may determine, but in no case shall the Company permit the delivery of shares other than in accordance with the schedule set forth in Section 4 below, except as may otherwise be required under Section 7 below.

4.    Lapse of the Forfeiture Restrictions

The Forfeiture Restrictions shall lapse in accordance with this Section 4 and the applicable provisions of the Plan as follows:

		
	(a)
	(i)  On [       ] anniversary of the Grant Date, the Forfeiture Restrictions with respect to [            ] of the Units shall lapse and such Units shall constitute Vested Units.

(ii)    On the [         ] anniversary of the Grant Date, the Forfeiture Restrictions with respect to [             ] of the Units shall lapse and such Units shall constitute Vested Units.

(iii)     On the [         ] anniversary of the Grant Date, the Forfeiture Restrictions with respect to [               ] of the Units shall lapse and such Units shall constitute Vested Units.

(iv)     On the [             ] anniversary of the Grant Date, the Forfeiture Restrictions with respect to [               ] of the Units shall lapse and such Units shall constitute Vested Units.

		
	(b)
	Except as otherwise provided in the Plan or this Restricted Stock Unit Agreement, none of the Forfeiture Restrictions shall lapse with respect to any Units on any date specified above unless the Participant’s Service Relationship is then in effect.  Section 6.6.3 of the Plan (Termination of a Participant’s Service Relationship by Reason of Retirement) shall not apply to this Award. Accordingly, if a Participant’s Service Relationship terminates by reason of Retirement, Units shall be governed by Section 6.6.4 of the Plan (Termination of a Participant’s Service Relationship for any Other Reason).

5.    Settlement of Units

If Units become Vested Units, Shares shall be issued or credited to the Participant in respect of such Vested Units promptly, and in no case later March 15th of the calendar year immediately after the calendar year in which the Units became Vested Units, except as may otherwise be required under Section 7 below.

6.    Dividends

The Participant shall be entitled to receive any and all dividends or other distributions paid with respect to a number of Shares that correspond to the number of Units held by the Participant; provided, however, that any property  distributed with respect to a Unit (the “associated unit”) acquired hereunder, including without limitation a cash dividend or other cash distribution, a distribution of the Company’s common stock by reason of a stock dividend, stock split or otherwise, or a distribution of other securities with respect to an associated unit, shall be subject to the restrictions of this Restricted Stock Unit Agreement in the same manner and for so long as the associated unit remains subject to such restrictions, and shall be promptly forfeited if and when the associated unit is so forfeited; and further provided, that the Committee may require that any cash distribution with respect to the Units be placed in escrow or that such cash be converted to additional Units based on the fair market value of Shares as determined by the Committee.  References in this Restricted Stock Unit Agreement to the Units shall include any such restricted amounts.

7.    Taxes

The Participant acknowledges and agrees that he or she is solely responsible for any and all taxes that may be assessed by any taxing authority in the United States or any other jurisdiction arising in any way out of the Award, the Units or the Shares and that neither the Company nor any Company subsidiary is liable for any such assessments.  The grant of the Award and the vesting of the Units, the conversion of Units to Shares and the payment or crediting of dividends with respect to the Units, may give rise to taxable income subject to withholding.  

The Participant expressly acknowledges and agrees that the Company may satisfy withholding obligations by withholding from the Shares issuable in respect of the Units such number of Shares having a value sufficient to provide for the minimum applicable withholding taxes required by law (or actual withholding taxes where no minimum is prescribed) in connection with such grant, vesting or payment.  Unless the Company provides the Participant notice to the contrary, the Company shall satisfy withholding obligations by withholding from the Shares issuable in respect of the Units.

As an alternative to withholding Shares, the Company may elect to have withholding obligations satisfied pursuant to a sell to cover program.  If the Company elects to use a sell to cover program, the Participant hereby authorizes UBS Financial Services Inc. (“UBS”), or any successor plan administrator designated by the Company, to sell a number of Shares that are issued in connection with the vesting of the Units, which the Company determines, in its sole discretion, is sufficient to generate an amount that meets the maximum tax withholding obligation plus additional 

Shares to account for rounding and market fluctuations, and to pay such tax to the Company.  Any Shares sold by UBS, or its successor, may be sold as part of a block trade with other Participants in the Plan in which all Participants receive an average price.  Shares will be sold pursuant to the sell to cover programs as soon as administratively practicable following the date on which the Units became Vested Units.  The Participant acknowledges that the future value of the Shares underlying the Units is unknown and can’t be predicted with certainty and that the value of the Shares may fluctuate between the date they vest and are sold pursuant to a sell to cover program. 

If the Participant is subject to the Company’s Securities Trading Policy (any Participant subject to this policy is notified by the Company) and the Company has elected to use a sell to cover program, the vesting date of Units shall be delayed if the date pursuant to which Shares are expected to be sold under the sell to cover program in connection with the vesting would occur during a “closed window.” If a delay is required, the vesting date of the Units shall be delayed until the earlier of (i) the first day on which there is an “open window” and (ii) March 15 of the calendar year immediately after the calendar year in which the vesting date would have occurred but for the delay. 

Notwithstanding anything in this Agreement to the contrary, to the extent necessary to avoid the application of an accelerated or additional tax under Section 409A of the Internal Revenue Code of 1986, as amended, the payment of amounts otherwise due during the first six months following the Participant's "separation from service" (as defined under Section 409A and the regulations thereunder) will be paid in a lump sum on the first business day following the date that is six months following such separation from service (or the date of death, if earlier) if the Participant is a “specified employee” (defined generally under Section 409A and the regulations thereunder as one of the 50 most highly compensated officers of the Company).

8.    Non-transferability of Award

The Award is not transferable by the Participant except by will or the laws of descent and distribution.

9.    Provisions of the Plan

This Restricted Stock Unit Agreement and the Award are subject to the provisions of the Plan, a copy of which has been furnished to the Participant herewith.

10.    Entire Agreement

This Restricted Stock Unit Agreement (including the documents referred to herein) constitutes the entire agreement with respect to the Award and supersedes all prior agreements and understandings, whether oral or written, between the Participant and the Company with respect to the foregoing.

Acceptance, Acknowledgment and Receipt    

By accepting this Restricted Stock Unit Agreement, I, the Participant, hereby: 

		
	•
	accept and acknowledge receipt of the Award granted on the Grant Date, which has been issued to me under the terms and conditions of the Plan;

		
	•
	acknowledge and confirm my consent to the collection, use and transfer, in electronic or other form, of personal information about me, including, without limitation, my name, home address and telephone number, date of birth, social security number or other identification number, and details of all my stock awards and Units held and transactions related thereto, by the Company and its subsidiaries, affiliates and agents for the purpose of  implementing, administrating and managing my participation in the Company’s stock plans, and further understand and agree that my personal information may be transferred to third parties assisting in the implementation, administration and management of the Company’s stock plans, that any recipient may be located in my country or elsewhere, and that such recipient’s country may have different data privacy laws and protections than my country; 

		
	•
	acknowledge receipt of a copy of the Plan and the related Plan Description and agree to be bound by the terms and conditions of this Performance Restricted Stock Unit Agreement and the Plan (including, but not limited to, Section 6.7 - Cancellation and Rescission of Awards), as amended from time to time;

		
	•
	understand that neither the Plan nor this Restricted Stock Unit Agreement gives me any right to any Service Relationship with the Company or any Company subsidiary, as the case may be, and that the Award is not part of my normal or expected compensation; and

		
	•
	understand and acknowledge that the grant of the Award is expressly conditioned on my adherence to, and agreement to the terms of, the Key Employment Agreement with the Company.Exhibit 10.23 Maginatics, Inc. 2010 Stock Incentive Plan

Exhibit 10.23

	
	
	 

	MAGINATICS, INC.

	 

	2010 STOCK INCENTIVE PLAN

	 

	Adopted by the Board on July 17, 2010

	 

	Approved by the Stockholders on July ___, 2010

	 

TABLE OF CONTENTS
Page
	
					
	SECTION 1.
	PURPOSE
	1
	

	 
	 
	 
	 

	SECTION 2.
	DEFINITIONS
	1
	

	 
	2.1
	“Board”
	1
	

	 
	2.2
	“Change in Control”
	1
	

	 
	2.3
	“Code”
	2
	

	 
	2.4
	“Committee”
	2
	

	 
	2.5
	“Company”
	2
	

	 
	2.6
	“Consultant”
	2
	

	 
	2.7
	“Disability”
	2
	

	 
	2.8
	“Employee”
	2
	

	 
	2.9
	“Exchange Act”
	2
	

	 
	2.10
	“Exercise Price”
	2
	

	 
	2.11
	“Fair Market Value”
	2
	

	 
	2.12
	“ISO”
	2
	

	 
	2.13
	“NSO”
	3
	

	 
	2.14
	“Option”
	3
	

	 
	2.15
	“Optionee”
	3
	

	 
	2.16
	“Outside Director”
	3
	

	 
	2.17
	“Parent”
	3
	

	 
	2.18
	“Plan”
	3
	

	 
	2.19
	“Purchase Price”
	3
	

	 
	2.20
	“Purchaser”
	3
	

	 
	2.21
	“Restricted Share Agreement”
	3
	

	 
	2.22
	“Securities Act”
	3
	

	 
	2.23
	“Service”
	3
	

	 
	2.24
	“Share”
	3
	

	 
	2.25
	“Stock”
	3
	

	 
	2.26
	“Stock Option Agreement”
	4
	

	 
	2.27
	“Subsidiary”
	4
	

	 
	2.28
	“Ten-Percent Stockholder”
	4
	

	 
	 
	 
	 

	SECTION 3.
	ADMINISTRATION
	4
	

	 
	3.1
	General Rule
	4
	

	 
	3.2
	Board Authority and Responsibility
	4
	

	 
	 
	 
	 

	SECTION 4.
	ELIGIBILITY
	4
	

	 
	4.1
	General Rule
	4
	

	 
	 
	 
	 

	SECTION 5.
	STOCK SUBJECT TO PLAN
	4
	

	 
	5.1
	Share Limit
	4
	

	 
	5.2
	Additional Shares
	5
	

	 
	 
	 
	 

	 
	 
	 
	 

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	SECTION 6.
	RESTRICTED SHARES
	5
	

	 
	6.1
	Restricted Share Agreement
	5
	

	 
	6.2
	Duration of Offers and Nontransferability of Purchase Rights
	5
	

	 
	6.3
	Purchase Price
	5
	

	 
	6.4
	Repurchase Rights and Transfer Restrictions
	5
	

	 
	 
	 
	 

	SECTION 7.
	STOCK OPTIONS
	5
	

	 
	7.1
	Stock Option Agreement
	5
	

	 
	7.2
	Number of Shares; Kind of Option
	6
	

	 
	7.3
	Exercise Price
	6
	

	 
	7.4
	Term
	6
	

	 
	7.5
	Exercisability
	6
	

	 
	7.6
	Repurchase Rights and Transfer Restrictions
	6
	

	 
	7.7
	Transferability of Options
	7
	

	 
	7.8
	Exercise of Options on Termination of Service
	7
	

	 
	7.9
	No Rights as a Stockholder
	7
	

	 
	7.10
	Modification, Extension and Renewal of Options
	7
	

	 
	 
	 
	 

	SECTION 8.
	PAYMENT FOR SHARES
	7
	

	 
	8.1
	General
	7
	

	 
	8.2
	Surrender of Stock
	8
	

	 
	8.3
	Services Rendered
	8
	

	 
	8.4
	Promissory Notes
	8
	

	 
	8.5
	Exercise/Sale
	8
	

	 
	8.6
	Exercise/Pledge
	8
	

	 
	8.7
	Other Forms of Payment
	8
	

	 
	 
	 
	 

	SECTION 9.
	ADJUSTMENT OF SHARES
	8
	

	 
	9.1
	General
	8
	

	 
	9.2
	Dissolution or Liquidation
	9
	

	 
	9.3
	Mergers and Consolidations
	9
	

	 
	9.4
	Reservation of Rights
	9
	

	 
	 
	 
	 

	SECTION 10.
	REPURCHASE RIGHTS
	9
	

	 
	10.1
	Company’s Right To Repurchase Shares
	9
	

	 
	 
	 
	 

	SECTION 11.
	WITHHOLDING AND OTHER TAXES
	10
	

	 
	11.1
	General
	10
	

	 
	11.2
	Share Withholding
	10
	

	 
	11.3
	Cashless Exercise/Pledge
	10
	

	 
	11.4
	Other Forms of Payment
	10
	

	 
	11.5
	Employer Fringe Benefit Taxes
	10
	

	 
	 
	 
	 

	SECTION 12.
	SECURITIES LAW REQUIREMENTS
	10
	

	 
	12.1
	General
	10
	

	 
	12.2
	Dividend Rights
	10
	

	 
	 
	 
	 

	SECTION 13.
	NO RETENTION RIGHTS
	11
	

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	SECTION 14.
	DURATION AND AMENDMENTS
	11
	

	 
	14.1
	Term of the Plan
	11
	

	 
	14.2
	Right to Amend or Terminate the Plan
	11
	

	 
	14.3
	Effect of Amendment or Termination
	11
	

	 
	 
	 
	 

	SECTION 15.
	EXECUTION
	12
	

- iii-

Maginatics, Inc.

2010 STOCK INCENTIVE PLAN

SECTION 1.    PURPOSE.

The Plan was adopted by the Board of Directors effective July 17, 2010.  The purpose of the Plan is to offer selected service providers the opportunity to acquire equity in the Company through awards of Options (which may constitute incentive stock options or nonstatutory stock options) and the award or sale of Shares.

The award of Options and the award or sale of Shares under the Plan is intended to be exempt from the securities qualification requirements of the California Corporations Code by satisfying the exemption under section 25102(o) of the California Corporations Code.  However, awards of Options and the award or sale of Shares may be made in reliance upon other state securities law exemptions.  To the extent that such other exemptions are relied upon, the terms of this Plan which are included only to comply with section 25102(o) shall be disregarded to the extent provided in the Stock Option Agreement or Restricted Share Agreement.  In addition, to the extent that section 25102(o) or the regulations promulgated thereunder are amended to delete any requirements set forth in such law or regulations, the terms of this Plan which are included only to comply with section 25102(o) or the regulations promulgated thereunder as in effect prior to any such amendment shall be disregarded to the extent permitted by applicable law.

SECTION 2.    DEFINITIONS.

		
	2.1
	“Board” shall mean the Board of Directors of the Company, as constituted from time to time.

		
	2.2
	“Change in Control” shall mean the occurrence of any of the following events:

		
	(a)
	The consummation of a merger or consolidation of the Company with or into another entity or any other corporate reorganization, if persons who were not stockholders of the Company immediately prior to such merger, consolidation or other reorganization own immediately after such merger, consolidation or other reorganization fifty percent (50%) or more of the voting power of the outstanding securities of each of (A) the continuing or surviving entity and (B) any direct or indirect parent corporation of such continuing or surviving entity;

		
	(b)
	The consummation of the sale, transfer or other disposition of all or substantially all of the Company’s assets or the stockholders of the Company approve a plan of complete liquidation of the Company; or

		
	(c)
	Any “person” (as defined below) who, by the acquisition or aggregation of securities, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the combined voting power of the Company’s then outstanding securities ordinarily (and apart from rights accruing under special circumstances) having the right to vote at elections of directors (the “Base Capital Stock”); except that any change in the relative beneficial ownership 

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of the Company’s securities by any person resulting solely from a reduction in the aggregate number of outstanding shares of Base Capital Stock, and any decrease thereafter in such person’s ownership of securities, shall be disregarded until such person increases in any manner, directly or indirectly, such person’s beneficial ownership of any securities of the Company.

For purposes of Section 2.2(c), the term “person” shall have the same meaning as when used in sections 13(d) and 14(d) of the Exchange Act but shall exclude (1) a trustee or other fiduciary holding securities under an employee benefit plan maintained by the Company or a Parent or Subsidiary and (2) a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the Stock.

Notwithstanding the foregoing, the term “Change in Control” shall not include (a) a transaction the sole purpose of which is to change the state of the Company’s incorporation, (b) a transaction the sole purpose of which is to form a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction, (c) a transaction the sole purpose of which is to make an initial public offering of the Company’s Stock or (d) any change in the beneficial ownership of the securities of the Company as a result of a private financing of the Company that is approved by the Board.

2.3    “Code” shall mean the Internal Revenue Code of 1986, as amended.

		
	2.4
	“Committee” shall mean the committee designated by the Board, which is authorized to administer the Plan, as described in Section 3 hereof.

		
	2.5
	“Company” shall mean Maginatics, Inc., a Delaware corporation.

		
	2.6
	“Consultant” shall mean a consultant or advisor who is not an Employee or Outside Director and who performs bona fide services for the Company, a Parent or Subsidiary.

		
	2.7
	“Disability” shall mean a condition that renders an individual unable to engage in substantial gainful activity by reason of any medically determinable physical or mental impairment.

		
	2.8
	“Employee” shall mean any individual who is a common-law employee of the Company, a Parent or a Subsidiary and who is an “employee” within the meaning of section 3401(c) of the Code and regulations issued thereunder.

		
	2.9
	“Exchange Act” shall mean the U.S. Securities and Exchange Act of 1934, as amended.

		
	2.10
	“Exercise Price” shall mean the amount for which one Share may be purchased upon the exercise of an Option, as specified in a Stock Option Agreement.

		
	2.11
	“Fair Market Value” means, with respect to a Share, the market price of one Share of Stock, determined by the Board in good faith.  Such determination shall be conclusive and binding on all persons.

		
	2.12
	“ISO” shall mean an incentive stock option described in section 422(b) of the Code.

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	2.13
	“NSO” shall mean a stock option that is not an ISO.

		
	2.14
	“Option” shall mean an ISO or NSO granted under the Plan and entitling the holder to purchase Shares.

		
	2.15
	“Optionee” shall mean a person that holds an Option.

		
	2.16
	“Outside Director” shall mean a member of the Board of the Company, a Parent or a Subsidiary who is not an Employee.

		
	2.17
	“Parent” shall mean any corporation (other than the Company) in an unbroken chain of corporations ending with the Company, if each of the corporations other than the Company 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.  A corporation that attains the status of a Parent on a date after the adoption of the Plan shall be considered a Parent commencing as of such date.

		
	2.18
	“Plan” shall mean the Maginatics, Inc. 2010 Stock Incentive Plan.

		
	2.19
	“Purchase Price” shall mean the consideration for which one Share may be acquired under the Plan (other than upon exercise of an Option).

		
	2.20
	“Purchaser” shall mean a person to whom the Board has offered the right to acquire Shares under the Plan (other than upon exercise of an Option).

		
	2.21
	“Restricted Share Agreement” shall mean the agreement between the Company and a Purchaser who acquires Shares under the Plan that contains the terms, conditions and restrictions pertaining to the acquisition of such Shares.

		
	2.22
	“Securities Act” shall mean the U.S. Securities Act of 1933, as amended.

		
	2.23
	“Service” shall mean service as an Employee, a Consultant or an Outside Director, subject to such further limitations as may be set forth in the applicable Stock Option Agreement or Restricted Share Agreement.  Service shall be deemed to continue during a bona fide leave of absence approved by the Company in writing if and to the extent that continued crediting of Service for purposes of the Plan is expressly required by the terms of such leave or by applicable law, as determined by the Company.  However, for purposes of determining whether an Option is entitled to ISO status, and to the extent required under the Code, an Employee’s employment will be treated as terminating three (3) months after such Employee went on leave, unless such Employee’s right to return to active work is guaranteed by law or by a contract or such Employee immediately returns to active work.  The Company determines which leaves count toward Service, and when Service terminates for all purposes under the Plan.

		
	2.24
	“Share” shall mean one share of Stock, as adjusted in accordance with Section 9 (if applicable).

		
	2.25
	“Stock” shall mean the common stock of the Company.

-3-

		
	2.26
	“Stock Option Agreement” shall mean the agreement between the Company and an Optionee which contains the terms, conditions and restrictions pertaining to the Optionee’s Option.

		
	2.27
	“Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain 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.  A corporation that attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date.

		
	2.28
	“Ten-Percent Stockholder” means an individual who owns more than ten percent (10%) of the total combined voting power of all classes of outstanding stock of the Company, its Parent or any of its Subsidiaries.  In determining stock ownership for purposes of this Section 2.28, the attribution rules of section 424(d) of the Code shall be applied.

SECTION 3.    ADMINISTRATION.

		
	3.1
	General Rule.  The Plan shall be administered by the Board.  However, the Board may delegate any or all administrative functions under the Plan otherwise exercisable by the Board to one or more Committees.  Each Committee shall consist of at least one member of the Board who has been appointed by the Board.  Each Committee shall have the authority and be responsible for such functions as the Board has assigned to it.  If a Committee has been appointed, any reference to the Board in the Plan shall be construed as a reference to the Committee to whom the Board has assigned a particular function.  To the extent permitted by applicable law, the Board may also authorize one or more officers of the Company to designate Employees, other than such authorized officer or officers, to receive awards and/or to determine the number of such awards to be received by such persons; provided, however, that the Board shall specify the total number of awards that such officer or officers may so award.

		
	3.2
	Board Authority and Responsibility.  Subject to the provisions of the Plan, the Board shall have full authority and discretion to take any actions it deems necessary or advisable for the administration of the Plan.  All decisions, interpretations and any other actions of the Board with respect to the Plan shall be final and binding on all persons deriving rights under the Plan.

SECTION 4.    ELIGIBILITY.

		
	4.1
	General Rule.  Only Employees shall be eligible for the grant of ISOs.  Only Employees, Consultants and Outside Directors shall be eligible for the grant of NSOs or the award or sale of Shares.

SECTION 5.    STOCK SUBJECT TO PLAN.

		
	5.1
	Share Limit.  Subject to Sections 5.2 and 9, the aggregate number of Shares which may be issued under the Plan shall not exceed 4,500,000 Shares.  The number of Shares which are subject to Options or other rights outstanding at any time shall not exceed the number of Shares which then remain available for issuance under the Plan.  The Company, during 

-4-

the term of the Plan, shall at all times reserve and keep available sufficient Shares to satisfy the requirements of the Plan.  Shares offered under the Plan may be authorized but unissued Shares or treasury Shares.

		
	5.2
	Additional Shares.  In the event that any outstanding Option or other right expires or is canceled for any reason, the Shares allocable to the unexercised portion of such Option or other right shall remain available for issuance pursuant to the Plan.  If a Share previously issued under the Plan is reacquired by the Company pursuant to a forfeiture provision, then such Share shall again become available for issuance under the Plan.

SECTION 6.    RESTRICTED SHARES.

		
	6.1
	Restricted Share Agreement.  Each award or sale of Shares under the Plan (other than upon exercise of an Option) shall be evidenced by a Restricted Share Agreement between the Purchaser and the Company.  Such award or sale shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions imposed by the Board, as set forth in the Restricted Share Agreement, that are not inconsistent with the Plan.  The provisions of the various Restricted Share Agreements entered into under the Plan need not be identical.

		
	6.2
	Duration of Offers and Nontransferability of Purchase Rights.  Any right to acquire Shares (other than an Option) shall automatically expire if not exercised by the Purchaser within thirty (30) days after the Company communicates the grant of such right to the Purchaser.  Such right shall be nontransferable and shall be exercisable only by the Purchaser to whom the right was granted.

		
	6.3
	Purchase Price.  To the extent an award consists of newly issued Shares, the award recipient shall furnish consideration having a value not less than the par value of such Shares as determined by the Board.  Subject to the foregoing in this Section 6.3, the Board shall determine the amount of the Purchase Price in its sole discretion.  The Purchase Price shall be payable in a form described in Section 8.

		
	6.4
	Repurchase Rights and Transfer Restrictions.  Each award or sale of Shares shall be subject to such forfeiture conditions, rights of repurchase, rights of first refusal and other transfer restrictions as the Board may determine, subject to the requirements of Section 10.  Such restrictions shall be set forth in the applicable Restricted Share Agreement and shall apply in addition to any restrictions otherwise applicable to holders of Shares generally.

SECTION 7.    STOCK OPTIONS.

		
	7.1
	Stock Option Agreement.  Each grant of an Option under the Plan shall be evidenced by a Stock Option Agreement between the Optionee and the Company.  The Option shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions imposed by the Board, as set forth in the Stock Option Agreement, which are not inconsistent with the Plan.  The provisions of the various Stock Option Agreements entered into under the Plan need not be identical.

-5-

		
	7.2
	Number of Shares; Kind of Option.  Each Stock Option Agreement shall specify the number of Shares that are subject to the Option and shall provide for the adjustment of such number in accordance with Section 9.  The Stock Option Agreement shall also specify whether the Option is intended to be an ISO or an NSO.

		
	7.3
	Exercise Price.  Each Stock Option Agreement shall set forth the Exercise Price, which shall be payable in a form described in Section 8.  Subject to the following requirements, the Exercise Price under any Option shall be determined by the Board in its sole discretion:

		
	(a)
	Minimum Exercise Price for ISOs.  The Exercise Price per Share of an ISO shall not be less than one hundred percent (100%) of the Fair Market Value of a Share on the date of grant; provided, however, that the Exercise Price per Share of an ISO granted to a Ten-Percent Stockholder shall not be less than one hundred ten percent (110%) of the Fair Market Value of a Share on the date of grant.

		
	(b)
	Minimum Exercise Price for NSOs.  The Exercise Price per Share of an NSO shall not be less than one-hundred percent (100%) of the Fair Market Value of a Share on the date of grant.

		
	7.4
	Term.  Each Stock Option Agreement shall specify the term of the Option.  The term of an Option shall in no event exceed ten (10) years from the date of grant.  The term of an ISO granted to a Ten-Percent Stockholder shall not exceed five (5) years from the date of grant.  Subject to the foregoing, the Board in its sole discretion shall determine when an Option shall expire.

		
	7.5
	Exercisability.  Each Stock Option Agreement shall specify the date when all or any installment of the Option is to become exercisable; provided, however, that no Option shall be exercisable unless the Optionee has delivered to the Company an executed copy of the Stock Option Agreement.  Subject to the following restrictions, the Board in its sole discretion shall determine when all or any installment of an Option is to become exercisable and may, in its discretion, provide for accelerated exercisability in the event of a Change in Control or other events:

		
	(a)
	Options Granted to Outside Directors.  The exercisability of an Option granted to an Optionee for service as an Outside Director shall be automatically accelerated in full in the event of a Change in Control.

		
	(b)
	Early Exercise.  A Stock Option Agreement may permit the Optionee to exercise the Option as to Shares that are subject to a right of repurchase by the Company in accordance with the requirements of Section 10.1.

		
	7.6
	Repurchase Rights and Transfer Restrictions.  Shares purchased on exercise of Options shall be subject to such forfeiture conditions, rights of repurchase, rights of first refusal and other transfer restrictions as the Board may determine, subject to the requirements of Section 10.  Such restrictions shall be set forth in the applicable Stock Option Agreement and shall apply in addition to any restrictions otherwise applicable to holders of Shares generally.

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	7.7
	Transferability of Options.  During an Optionee’s lifetime, his or her Options shall be exercisable only by the Optionee or by the Optionee’s guardian or legal representatives, and shall not be transferable other than by beneficiary designation, will or the laws of descent and distribution.  Notwithstanding the foregoing, however, to the extent permitted by the Board in its sole discretion, an NSO may be transferred by the Optionee to a revocable trust or to one or more family members or a trust established for the benefit of the Optionee and/or one or more family members to the extent permitted by section 260.140.41(c) of Title 10 of the California Code of Regulations and Rule 701 of the Securities Act.

		
	7.8
	Exercise of Options on Termination of Service.  Each Option shall set forth the extent to which the Optionee shall have the right to exercise the Option following termination of the Optionee’s Service.  Each Stock Option Agreement shall provide the Optionee with the right to exercise the Option following the Optionee’s termination of Service during the Option term, to the extent the Option was exercisable for vested Shares upon termination of Service, for at least thirty (30) days if termination of Service is due to any reason other than cause, death or Disability, and for at least six (6) months after termination of Service if due to death or Disability (but in no event later than the expiration of the Option term).  If the Optionee’s Service is terminated for cause, the Stock Option Agreement may provide that the Optionee’s right to exercise the Option terminates immediately on the effective date of the Optionee’s termination.  To the extent the Option was not exercisable for vested Shares upon termination of Service, the Option shall terminate when the Optionee’s Service terminates.  Subject to the foregoing, such provisions shall be determined in the sole discretion of the Board, need not be uniform among all Options issued pursuant to the Plan, and may reflect distinctions based on the reasons for termination of Service.

		
	7.9
	No Rights as a Stockholder.  An Optionee, or a transferee of an Optionee, shall have no rights as a stockholder with respect to any Shares covered by the Option until such person becomes entitled to receive such Shares by filing a notice of exercise and paying the Exercise Price pursuant to the terms of the Option.  No adjustments shall be made, except as provided in Section 9.

		
	7.10
	Modification, Extension and Renewal of Options.  Within the limitations of the Plan, the Board may modify, extend or renew outstanding Options or may accept the cancellation of outstanding Options (to the extent not previously exercised), whether or not granted hereunder, in return for the grant of new Options for the same or a different number of Shares and at the same or a different Exercise Price.  The foregoing notwithstanding, no modification of an Option shall, without the consent of the Optionee, materially impair his or her rights or increase the Optionee’s obligations under such Option.

SECTION 8.    PAYMENT FOR SHARES.

		
	8.1
	General.  The entire Purchase Price or Exercise Price of Shares issued under the Plan shall be payable in cash, cash equivalents or one of the other forms provided in this Section 8.

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	8.2
	Surrender of Stock.  To the extent permitted by the Board in its sole discretion, payment may be made in whole or in part by surrendering (in good form for transfer), or attesting to ownership of, Shares which have already been owned by the Optionee; provided, however, that payment may not be made in such form if such action would cause the Company to recognize any (or additional) compensation expense with respect to the Option for financial reporting purposes.  Such Shares shall be valued at their Fair Market Value on the date of Option exercise.

		
	8.3
	Services Rendered.  As determined by the Board in its discretion, Shares may be awarded under the Plan in consideration of past or future services rendered to the Company, a Parent or Subsidiary.

		
	8.4
	Promissory Notes.  To the extent permitted by the Board in its sole discretion, payment may be made in whole or in part with a full-recourse promissory note executed by the Optionee or Purchaser.  The interest rate payable under the promissory note shall not be less than the minimum rate required to avoid the imputation of income for U.S. federal income tax purposes.  Shares shall be pledged as security for payment of the principal amount of the promissory note, and interest thereon; provided that if the Optionee or Purchaser is a Consultant, such note must be collateralized with such additional security to the extent required by applicable laws.  In no event shall the stock certificate(s) representing such Shares be released to the Optionee or Purchaser until such note is paid in full.  Subject to the foregoing, the Board shall determine the term, interest rate and other provisions of the note.

		
	8.5
	Exercise/Sale.  To the extent permitted by the Board in its sole discretion, and if a public market for the Shares exists, payment may be made in whole or in part by delivery (on a form prescribed by the Company) of an irrevocable direction to a securities broker approved by the Company to sell Shares and to deliver all or part of the sale proceeds to the Company in payment of all or part of the Exercise Price and any withholding taxes.

		
	8.6
	Exercise/Pledge.  To the extent permitted by the Board in its sole discretion, and if a public market for the Shares exists, payment may be made in whole or in part by delivery (on a form prescribed by the Company) of an irrevocable direction to a securities broker or lender approved by the Company to pledge Shares, as security for a loan, and to deliver all or part of the loan proceeds to the Company in payment of all or part of the Exercise Price and any withholding taxes.

		
	8.7
	Other Forms of Payment.  To the extent permitted by the Board in its sole discretion, payment may be made in any other form that is consistent with applicable laws, regulations and rules.

SECTION 9.    ADJUSTMENT OF SHARES.

		
	9.1
	General.  In the event of a subdivision of the outstanding Stock, a declaration of a dividend payable in Shares, a declaration of an extraordinary dividend payable in a form other than Shares in an amount that has a material effect on the Fair Market Value of the Stock, a combination or consolidation of the outstanding Stock into a lesser number of Shares, a recapitalization, a spin-off, a reclassification, or a similar occurrence, the Board 

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shall make appropriate adjustments to the following:  (i) the number of Shares available for future awards under Section 5; (ii) the number of Shares covered by each outstanding Option; (iii) the Exercise Price under each outstanding Option; and (iv) the price of Shares subject to the Company’s right of repurchase.

		
	9.2
	Dissolution or Liquidation.  To the extent not previously exercised or settled, Options shall terminate immediately prior to the dissolution or liquidation of the Company.

		
	9.3
	Mergers and Consolidations.  In the event that the Company is a party to a merger or other consolidation, or in the event of a transaction providing for the sale of all or substantially all of the Company’s stock or assets, outstanding Options shall be subject to the agreement of merger, consolidation or sale.  Such agreement may provide for one or more of the following:  (i) the continuation of the outstanding Options by the Company, if the Company is a surviving corporation; (ii) the assumption of the Plan and outstanding Options by the surviving corporation or its parent; (iii) the substitution by the surviving corporation or its parent of options with substantially the same terms for such outstanding Options; (iv) immediate exercisability of such outstanding Options followed by the cancellation of such Options; or (v) settlement of the intrinsic value of the outstanding Options (whether or not then exercisable) in cash or cash equivalents or equity (including cash or equity subject to deferred vesting and delivery consistent with the vesting restrictions applicable to such Options or the underlying Shares) followed by the cancellation of such Options; in each case without the Optionee’s consent.

		
	9.4
	Reservation of Rights.  Except as provided in this Section 9, an Optionee or offeree shall have no rights by reason of any subdivision or consolidation of shares of stock of any class, the payment of any dividend or any other increase or decrease in the number of shares of stock of any class.  Any issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or Exercise Price of Shares subject to an Option.  The grant of an Option pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business or assets.

SECTION 10. REPURCHASE RIGHTS.

		
	10.1
	Company’s Right To Repurchase Shares.  The Company shall have the right to repurchase Shares that have been acquired through an award or sale of Shares or exercise of an Option upon termination of the Purchaser’s or Optionee’s Service if provided in the applicable Restricted Share Agreement or Stock Option Agreement.  The Board in its sole discretion shall determine when the right to repurchase shall lapse as to all or any portion of the Shares, and may, in its discretion, provide for accelerated vesting in the event of a Change in Control or other events; provided, however, that the right to repurchase shall lapse as to all of the Shares issued to an Outside Director for service as an Outside Director in the event of Change in Control.

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SECTION 11.    WITHHOLDING AND OTHER TAXES.

		
	11.1
	General.  An Optionee or Purchaser or his or her successor shall pay, or make arrangements satisfactory to the Board for the satisfaction of, any federal, state, local or foreign withholding tax obligations that may arise in connection with the Plan.  The Company shall not be required to issue any Shares or make any cash payment under the Plan until such obligations are satisfied.

		
	11.2
	Share Withholding.  The Board may permit an Optionee or Purchaser to satisfy all or part of his or her withholding or income tax obligations by having the Company withhold all or a portion of any Shares that would otherwise be issued to him or her upon exercise of an Option, or by surrendering all or a portion of any Shares that he or she previously acquired; provided, however, that in no event may an Optionee or Purchaser surrender Shares in excess of the legally required withholding amount based on the minimum statutory withholding rates for federal and state tax purposes that apply to supplemental taxable income.  Such Shares shall be valued at their Fair Market Value on the date when taxes otherwise would be withheld in cash.  Any payment of taxes by assigning Shares to the Company may be subject to restrictions, including any restrictions required by rules of any federal or state regulatory body or other authority.  All elections by Optionees or Purchasers to have Shares withheld for this purpose shall be made in such form and under such conditions as the Board may deem necessary or advisable.

		
	11.3
	Cashless Exercise/Pledge.  The Board may provide that if Company Shares are publicly traded at the time of exercise, arrangements may be made to meet the Optionee’s or Purchaser’s withholding obligation by cashless exercise or pledge.

		
	11.4
	Other Forms of Payment.  The Board may permit such other means of tax withholding as it deems appropriate.

		
	11.5
	Employer Fringe Benefit Taxes.  To the extent permitted by applicable federal, state, local and foreign law, an Optionee or Purchaser shall be liable for any fringe benefit tax that may be payable by the Company and/or the Optionee’s or Purchaser’s employer in connection with any award granted to the Optionee or Purchaser under the Plan, which the Company and/or employer may collect by any reasonable method established by the Company and/or employer.

SECTION 12.    SECURITIES LAW REQUIREMENTS.

		
	12.1
	General.  Shares shall not be issued under the Plan unless the issuance and delivery of such Shares complies with (or is exempt from) all applicable requirements of law, including (without limitation) the Securities Act, the rules and regulations promulgated thereunder, state securities laws and regulations, and the regulations of any stock exchange or other securities market on which the Company’s securities may then be listed.

		
	12.2
	Dividend Rights.  A Restricted Share Agreement may require that the holders of Shares invest any cash dividends received in additional Shares.  Such additional Shares shall be subject to the same conditions and restrictions as the award with respect to which the dividends were paid.

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SECTION 13. NO RETENTION RIGHTS.

No provision of the Plan, or any right or Option granted under the Plan, shall be construed to give any Optionee or Purchaser any right to become an Employee, to be treated as an Employee, or to continue in Service for any period of time, or restrict in any way the rights of the Company (or Parent or subsidiary to whom the Optionee or Purchaser provides Service), which rights are expressly reserved, to terminate the Service of such person at any time and for any reason, with or without cause, without thereby incurring any liability to him or her.

SECTION 14.    DURATION AND AMENDMENTS.

		
	14.1
	Term of the Plan.  The Plan, as set forth herein, shall become effective on the date of its adoption by the Board, subject to the approval of the Company’s stockholders.  In the event that the stockholders fail to approve the Plan within twelve (12) months after its adoption by the Board, any grants, exercises or sales that have already occurred under the Plan shall be rescinded, and no additional grants, exercises or sales shall be made under the Plan after such date.  The Plan shall terminate automatically ten (10) years after its adoption by the Board.  The Plan may be terminated on any earlier date pursuant to Section 14.2 below.

		
	14.2
	Right to Amend or Terminate the Plan.  The Board may amend, suspend, or terminate the Plan at any time and for any reason.  An amendment of the Plan shall not be subject to the approval of the Company’s stockholders unless it (i) increases the number of Shares available for issuance under the Plan (except as provided in Section 9) or (ii) materially changes the class of persons who are eligible for the grant of Options or the award or sale of Shares.

		
	14.3
	Effect of Amendment or Termination.  No Shares shall be issued or sold under the Plan after the termination thereof, except upon exercise of an Option granted prior to such termination.  The termination of the Plan, or any amendment thereof, shall not adversely affect any Shares previously issued or any Option previously granted under the Plan without the holder’s consent.

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SECTION 15. EXECUTION.

To record the adoption of the Plan by the Board on July 17, 2010, effective on such date, the Company has caused its authorized officer to execute the same.

MAGINATICS, INC.

/s/ Amarjit Gill        
Amarjit Gill
President and CEO

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