Document:

EXHIBIT
10.139

 

MICRON TECHNOLOGY, INC.

 

1989 EMPLOYEE STOCK PURCHASE PLAN

 

                The
following constitute the provisions of the 1989 Employee Stock Purchase Plan of
Micron Technology, Inc.:

 

                1.             Purpose.  The purpose of the Plan is to provide
employees of the Company and its Designated Subsidiaries with an opportunity to
purchase Common Stock of the Company through accumulated payroll
deductions.  It is the intention of the
Company to have the Plan qualify as an “Employee Stock Purchase Plan” under
Section 423 of the Internal Revenue Code of 1986, as amended.  The provisions of the Plan shall,
accordingly, be construed so as to extend and limit participation in a manner
consistent with the requirements of that section of the Code.

 

                2.             Definitions.

 

                                (a)           “Board” shall mean the Board
of Directors of the Company.

 

                                (b)           “Code” shall mean the Internal
Revenue Code of 1986, as amended.

 

                                (c)           “Committee” shall mean the
committee of the Board appointed by the Board to administer the Plan, if any is
appointed.

 

                                (d)           “Common Stock” shall mean the
Common Stock, $.10 par value, of the Company.

 

                                (e)           “Company” shall mean Micron
Technology, Inc., a Delaware corporation.

 

                                (f)            “Compensation” with respect
to any Employee means such Employee’s wages, salaries, fees for professional
services and other amounts received for personal services actually rendered in
the course of employment with the Company or its designated subsidiaries to the
extent that the amounts are includible in gross income (including, but not
limited to, commissions paid to salesmen, compensation for services on the
basis of a percentage of profits, tips, and bonuses).

 

                Compensation
shall exclude (a)(1) contributions made by the employer to a plan of deferred
compensation to the extent that, the contributions are not includible in the
gross income of the Employee for the taxable year in which contributed, (2)
employer contributions made on behalf of an Employee to a simplified employee
pension plan described in Code Section 408(k) to the extent such contributions
are excludable from the Employee’s gross income, (3) any distributions from a
plan of deferred compensation; (b) amounts realized from the exercise of a
non-qualified stock option, or when restricted stock (or property) held by an
Employee either becomes freely transferable or is no longer subject to
substantial risk of forfeiture; (c) amounts realized from the sale, exchange or
other disposition of stock acquired under a qualified stock option; (d) other
amounts which receive special tax benefits, such as premiums for group-term
life insurance (but only to the extent that the premiums are not includible in
the gross income of the employee), or contributions made by the employer
(whether or not under a salary reduction agreement) towards the purchase of any
annuity contract described in Code Section 403(b) (whether or not the
contributions are actually excludable from the Employee’s gross income); (e)
reimbursements or other expense allowances; (f) fringe benefits (cash and
noncash); (g) moving expenses; and (h) welfare benefits.

 

                                (g)           “Continuous
Status as an Employee” shall mean the absence of any interruption or
termination of service as an Employee. 
Continuous Status as an Employee shall not be considered interrupted in
the case of a leave of absence agreed to in writing by the Company, provided
that such leave is for a period of not more than 90 days or reemployment upon
the expiration of such leave is guaranteed by contract or statute.

 

                                (h)           “Designated Subsidiaries”
shall mean the Subsidiaries which have been designated by the Board from time
to time in its sole discretion as eligible to participate in the Plan.

 

 

 

                                (i)            “Employee” shall mean any
person, including an officer, who is continuously employed for at least twenty
(20) hours per week and more than five (5) months in a calendar year by the
Company or one of its Designated Subsidiaries.

 

                                (j)            “Enrollment Date” shall mean
the first day of each Offering Period.

 

                                (k)           “Exercise Date” shall mean the
last Trading Day of each Offering Period of the Plan.

 

                                (l)            “Offering Period” shall mean
a period of three (3) months during which an option granted pursuant to the
Plan may be exercised.

 

                                (m)          “Plan” shall mean this Employee
Stock Purchase Plan.

 

                                (n)           “Subsidiary” shall mean a
corporation, domestic or foreign, of which not less than 50% of the voting
shares are held by the Company or a Subsidiary, whether or not such corporation
now exists or is hereafter organized or acquired by the Company or a
Subsidiary.

 

                                (o)           “Trading Day” shall mean a day
on which the national stock exchanges and Nasdaq system are open for trading.

 

                3.             Eligibility.

 

                                (a)           Any Employee as defined in paragraph
2 who has been continuously employed by the Company or any subsidiary of the
Company for at least one (1) consecutive month and who shall be employed by the
Company on a given Enrollment Date shall be eligible to participate in the
Plan.

 

                                (b)           Any provisions of the Plan to the
contrary notwithstanding, no Employee shall be granted an option under the Plan
(i) if, immediately after the grant, such Employee (or any other person whose
stock would be attributed to such Employee pursuant to Section 424(d) of the
Code) would own stock and/or hold outstanding options to purchase stock
possessing five percent (5%) or more of the total combined voting power or
value of all classes of stock of the Company or of any subsidiary of the
Company, or (ii) which permits his rights to purchase stock under all employee
stock purchase plans (described in Section 423 of the Code) of the Company and
its subsidiaries to accrue at a rate which exceeds Twenty-Five Thousand Dollars
($25,000) of fair market value of such stock (determined at the time such
option is granted) for each calendar year in which such option is outstanding
at any time.

 

                                (c)           All Employees who participate in the
Plan shall have the same rights and privileges, except for differences that may
be mandated by local law and that are consistent with Code Section 423(b)(5);
provided that Employees participating in any sub-plan adopted pursuant to
Section 14(c) that is not designed to qualify under Section 423 of the Code
need not have the same rights and privileges as Employees participating in the
Code Section 423 plan.

 

                4.             Offering Periods.  The Plan shall be implemented by consecutive
Offering Periods with a new Offering Period commencing on or about January 1,
April 1, July 1, and October 1 of each year commencing on or about January 1,
1989 or, in the discretion of the committee, April 1, 1989, and continuing
thereafter until terminated in accordance with paragraph 20 hereof.  Subject to the shareholder approval
requirements of paragraph 20, the Board of Directors of the Company shall have
the power to change the duration of offering periods with respect to future
offerings if such change is announced at least fifteen (15) days prior to the
scheduled beginning of the first offering period to be affected.

 

                5.             Participation.

 

                                (a)           An eligible Employee may become a
participant in the Plan by completing a Company approved enrollment form
authorizing payroll deductions and filing it with the Company’s Global Stock
Plans Department at least ten (10) business days prior to the applicable
Enrollment Date, unless a different time for filing the subscription agreement
is set by the Board for all eligible Employees with respect to a given Offering
Period.

 

 

2

 

 

                                (b)           Payroll
deductions for a participant shall commence on the first payroll following the
Enrollment Date and shall end on the last payroll in the Offering Period to
which such authorization is applicable, unless sooner terminated by the
participant as provided in paragraph 11.

 

                6.             Payroll Deductions.

 

                                (a)           At the time a participant files his
subscription agreement, he or she shall elect to have payroll deductions made
on each payday during the Offering Period in an amount not less than one
percent (1%) and not greater than twenty percent (20%) of the Compensation
which he or she received on the payday immediately preceding the Enrollment
Date, and the aggregate of such payroll deductions during the Offering Period
shall not exceed twenty percent (20%) of his or her aggregate Compensation
during said Offering Period.

 

                                (b)           All payroll deductions made by a
participant shall be credited to his or her account under the Plan.  A participant may not make any additional
payments into such account.

 

                                (c)           A
participant may discontinue his or her participation in the Plan as provided in
paragraph 11, but may not otherwise change, their rate of payroll deductions
during the Offering Period.  A
participant’s subscription agreement shall remain in effect for successive
Offering Periods unless revised as provided herein or terminated as provided in
paragraph 11.

 

                                (d)           Notwithstanding the foregoing, to the
extent necessary to comply with Section 423(b)(8) of the Code and paragraph
3(b) herein, a participant’s payroll deductions may be decreased to 0% at such
time during any Offering Period which is scheduled to end during the current calendar
year that the aggregate of all payroll deductions accumulated with respect to
such Offering Period and any other Offering Period ending within the same
calendar year equal $21,250.  Payroll
deductions shall recommence at the rate provided in such participant’s
subscription agreement at the beginning of the first Offering Period which is
scheduled to end in the following calendar year, unless terminated by the
participant as provided in paragraph 11.

 

                7.             Grant of Option.

 

                                (a)           On
the Enrollment Date of each Offering Period, each eligible Employee
participating in such Offering Period shall be granted an option to purchase on
each Exercise Date during such Offering Period up to a number of shares of the
Company’s Common Stock determined by dividing such Employee’s payroll
deductions accumulated prior to such Exercise Date and retained in the
participant’s account as of the Exercise Date by the lower of (i) eighty-five
percent (85%) of the fair market value of a share of the Company’s Common Stock
on the Enrollment Date or (ii) eighty-five percent (85%) of the fair market
value of a share of the Company’s Common Stock on the Exercise Date; provided
that in no event shall an Employee be permitted to purchase during each
Offering Period more than 2,000 shares, and provided further that such purchase
shall be subject to the limitations set forth in Section 3(b) and 13
hereof.  Exercise of the option shall
occur as provided in Section 8, unless the participant has withdrawn pursuant
to Section 11, and shall expire on the last day of the Offering Period.  Fair market value or a share of the
Company’s Common Stock shall be determined as provided in Section 7(b) herein.

 

                                (b)           The
option price per share of the shares offered in a given Offering Period shall
be the lower of:  (i) 85% of the fair
market value of a share of the Common Stock of the Company on the Enrollment
Date; or (ii) 85% of the fair market value of a share of the Common Stock of
the Company on the Exercise Date.  The
fair market value of the Company’s Common Stock on a given date shall be
determined by the Board in its discretion; provided, however that where there
is a public market for the Common Stock, the fair market value per share shall
be the closing price for the Company’s Common Stock (or the closing bid, if no
sales were reported) as quoted on any established stock exchange, including
without limitation the New York Stock Exchange (“NYSE”), or a national market
system (or the exchange with the greatest volume of trading in Common Stock) on
the day of determination, as reported by Bloomberg, L.P. or such other source
as the Administrator deems reliable.

 

                8.             Exercise of Option.  Unless a participant withdraws from the Plan
as provided in paragraph 11, his or her option for the purchase of shares will
be exercised automatically on the Exercise Date of the Offering Period, and the
maximum number of full shares subject to option will be purchased for him or
her at the applicable option 

 

 

3

 

 

price with the accumulated payroll deductions
in his account.  The shares purchased
upon exercise of an option hereunder shall be deemed to be transferred to the
participant on the Exercise Date. 
During his or her lifetime, a participant’s option to purchase shares
hereunder is exercisable only by such participant.

 

                9.             Paragraph Intentionally Left
Blank.

 

                10.           Delivery.  Following the Exercise Date of each Offering
Period, unless a participant requests the issuance of a certificate
representing the participant’s shares, the Company shall as soon as practicable
record the participant’s full shares in book entry form.  Upon request from a participant, the Company
shall arrange for the delivery to the participant of a certificate representing
the full shares purchased.  Any cash
remaining to the credit of a participant’s account under the Plan after a
purchase by the participant of shares at the termination of each Offering
Period, which is insufficient to purchase a full share of Common Stock of the
Company, shall be returned to said participant or retained in the participant’s
account for the subsequent Offering Period, as determined by the Company as to
all participants for a given Offering Period.

 

                11.           Withdrawal; Termination of Employment.

 

                                (a)           A participant may withdraw all but
not less than all the payroll deductions credited to such participant’s account
under the Plan at any time prior to the Exercise Date of the Offering Period by
giving written notice to the Company. 
All of the participant’s payroll deductions credited to his or her
account will be paid to him or her promptly after receipt of the notice of
withdrawal and the participant’s option for the current Offering Period will be
automatically terminated, and no further payroll deductions for the purchase of
shares will be made during the Offering Period.  If a participant withdraws from an Offering Period, payroll
deductions will not resume at the beginning of the succeeding Offering Period
unless the participant delivers to the Company a new subscription agreement as
described in Section 5(a).

 

                                (b)           Upon
termination of the participant’s Continuous Status as an Employee prior to the
Exercise Date of the Offering Period for any reason, including retirement or
death, the payroll deductions credited to such participant’s account will be
returned to him or her or, in the case of his or her death, to the person or
persons entitled thereto under paragraph 15, and such participant’s option will
be automatically terminated.

 

                                (c)           In the event an Employee fails to
remain in Continuous Status as an Employee of the Company for at least twenty
(20) hours per week during the Offering Period in which the Employee is a
participant, he or she will be deemed to have elected to withdraw from the Plan
and the payroll deductions credited to his or her account will be returned to
him or her and the option terminated.

 

                                (d)           A participant’s withdrawal from an
Offering Period will not have any effect upon his or her eligibility to
participate in a succeeding Offering Period or in any similar plan which may
hereafter be adopted by the Company.

 

                12.           Interest.  No interest shall accrue on the payroll
deductions of a participant in the Plan.

 

                13.           Stock.

 

                                (a)           The
maximum number of shares of the Company’s Common Stock which shall be made
available for sale under the Plan shall be 20,500,000, subject to adjustment
upon changes in capitalization of the Company as provided in paragraph 19.  If the total number of shares which would
otherwise be subject to options granted pursuant to Section 7(a) hereof on the
Enrollment Date of an Offering Period exceeds the number of shares then
available under the Plan (after deduction of all shares for which options have
been exercised or are then outstanding), the Company shall make a pro rata
allocation of the shares remaining available for option grant in as uniform a
manner as shall be practicable and as it shall determine to be equitable.  In such event, the Company shall give
written notice of such reduction of the number of shares subject to the option
to each participant affected thereby and shall similarly reduce the rate of
payroll deductions, if necessary.

 

                                (b)           The participant will have no interest
or voting right in shares covered by his or her option until such option has
been exercised.

 

 

4

 

 

                                (c)           Shares to be delivered to a
participant under the Plan will be registered in the name of the participant.

 

                14.           Administration.  The Plan shall be administered by the Board
of the Company or a committee of members of the Board appointed by the
Board.  The administration,
interpretation or application of the Plan by the Board or its committee shall
be final, conclusive and binding upon all participants.  Members of the Board who are eligible
Employees are permitted to participate in the Plan, provided that:

 

                                (a)           Members of the Board who are eligible
to participate in the Plan may not vote on any matter affecting the
administration of the Plan or the grant of any option pursuant to the Plan.

 

                                (b)           If a Committee is established to
administer the Plan, no member of the Board who is eligible to participate in
the Plan may be a member of the Committee.

 

                                (c)           The Board or the Committee may adopt
rules or procedures relating to the operation and administration of the Plan to
accommodate the specific requirements of local laws and procedures.  Without limiting the generality of the
foregoing, the Board or the Committee is specifically authorized to adopt rules
and procedures regarding handling of payroll deductions, payment of interest,
conversion of local currency, payroll tax, withholding procedures and handling
of stock certificates which vary with local requirements.  With respect to any Designated Subsidiary
that employs participants who reside outside of the United States and
notwithstanding anything herein to the contrary, the Board or the Committee
may, in its sole discretion, amend or vary the terms of the Plan in order to
conform such terms with the requirements of local law or to meet the objectives
and purpose of the Plan.  The Board or
the Committee may, where appropriate, establish one or more sub-plans
applicable to particular Designated Subsidiaries or locations to reflect such
amended or varied provisions and which sub-plans may be designed to be outside
the scope of Code Section 423.  The
rules of such sub-plans may take precedence over other provisions of the Plan,
with the exception of Section 13(a), but unless otherwise superseded by the terms
of such sub-plan, the provisions of the Plan shall govern the operation of such
sub-plan.

 

                15.           Designation of Beneficiary.

 

                                (a)           A participant may file a written
designation of a beneficiary who is to receive any shares and cash, if any,
from the participant’s account under the Plan in the event of such
participant’s death subsequent to the end of the Offering Period but prior to
delivery to him of such shares and cash. 
In addition, a participant may file a written designation of a
beneficiary who is to receive any cash from the participant’s account under the
Plan in the event of such participant’s death prior to the Exercise Date of the
Offering Period.

 

                                (b)           Such designation of beneficiary may
be changed by the participant at any time by written notice.  In the event of the death of a participant
and in the absence of a beneficiary validly designated under the Plan who is
living at the time of such participant’s death, the Company shall deliver such
shares and/or cash to the executor or administrator of the estate of the
participant, or if no such executor or administrator has been appointed (to the
knowledge of the Company), the Company, in its discretion, may deliver such
shares and/or cash to the spouse or to any one or more dependents or relatives
of the participant, or if no spouse, dependent or relative is known to the
Company, then to such other person as the Company may designate.

 

                16.           Transferability of Rights.  Neither payroll deductions credited to a
participant’s account nor any rights with regard to the exercise of an option or
to receive shares under the Plan may be assigned, transferred, pledged or
otherwise disposed of in any way (other than by will, the laws of descent and
distribution or as provided in paragraph 15 hereof) by the participant.  Any such attempt at assignment, transfer,
pledge or other disposition shall be without effect, except that the Company
may treat such act as an election to withdraw funds in accordance with
paragraph 11.

 

                17.           Use of Funds.  All payroll deductions received or held by
the Company under the Plan may be used by the Company for any corporate
purpose, and the Company shall not be obligated to segregate such payroll
deductions.

 

 

5

 

 

                18.           Reports.  Individual accounts will be maintained for
each participant in the Plan. 
Statements of account will be given to participating Employees; on no
less than an annual basis, promptly following the Exercise Date, which
statements will set forth the amounts of payroll deductions, the per share
purchase price, the number of shares purchased and the remaining cash balance,
if any.

 

                19.           Adjustments Upon Changes in
Capitalization.  Subject to any
required action by the shareholders of the Company, the number of shares of
Common Stock covered by each option under the Plan which has not yet been
exercised and the number of shares of Common Stock which have been authorized
for issuance under the Plan but have not yet been placed under option
(collectively, the “Reserves”), as well as the price per share of Common Stock
covered by each option under the Plan which has not yet been exercised, shall
be proportionately adjusted for any increase or decrease in the number of
issued shares of Common Stock resulting from a stock split, reverse stock
split, stock dividend, combination or reclassification of the Common Stock, or
any other increase or decrease in the number of shares of Common Stock effected
without receipt of consideration by the Company; provided, however, that
conversion of any convertible securities of the Company shall not be deemed to
have been “effected without receipt of consideration.”  Such adjustment shall be made by the Board,
whose determination in that respect shall be final, binding and conclusive.  Except as expressly provided herein, no
issue by the Company of shares of stock of any class, or securities convertible
into shares of stock of any class, shall affect, and no adjustment by reason
thereof shall be made with respect to, the number or price of shares of Common
Stock subject to an option.

 

                In
the event of the proposed dissolution or liquidation of the Company, the
Offering Period will terminate immediately prior to the consummation of such
proposed action, unless otherwise provided by the Board.  In the event of a reorganization, merger, or
consolidation of the Company with one or more corporations in which the Company
is not the surviving corporation (or survives as a direct or indirect
subsidiary of other such other constituent corporation or its parent), or upon
a sale of all or substantially all of the property or stock of the Company to
another corporation, then, in the discretion of the Board or the Committee, (i)
each outstanding option shall be assumed, or an equivalent option substituted,
by the successor corporation or its parent, or (ii) the Offering Period then in
progress shall be shortened by setting a new Exercise Date, which shall be on
or before the date of the proposed transaction.  If the Committee sets a new Exercise Date, the Company shall
notify each participant, at least ten (10) business days prior to the new
Exercise Date, that the original Exercise Date has been changed to the new
Exercise Date and that the participant’s option shall be exercised
automatically on the new Exercise Date, unless the participant has withdrawn
from the Offering Period, as provided in Section 11(a) hereof, prior to the new
Exercise Date.

 

                The
Board may, if it so determines in the exercise of its sole discretion, also
make provision for adjusting the Reserves, as well as the price per share of
Common Stock covered by each outstanding option, in the event that the Company
effects one or more reorganizations, recapitalizations, rights offerings or
other increases or reductions of shares of its outstanding Common Stock, and in
the event of the Company being consolidated with or merged into any other
corporation.

 

                20.           Amendment or Termination.  The Board of Directors of the Company may at
any time terminate or amend the Plan. 
Except as provided in paragraph 19, no such termination can affect options
previously granted, nor may an amendment make any change in any option
theretofore granted which adversely affects the rights of any participant, nor
may an amendment be made without prior approval of the shareholders of the
Company (obtained in the manner described in paragraph 22) if such amendment
would:

 

                                (a)           Increase the number of shares that
may be issued under the Plan;

 

                                (b)           Change the designation of the
employees (or class of employees) eligible for participation in the Plan; or

 

                                (c)           Materially increase the benefits
which may accrue to participants under the Plan.

 

                                (d)           In the event that the Board
determines that the ongoing operation of the Plan may result in unfavorable
financial accounting consequences, the Board may, in its discretion and, to the
extent necessary or desirable, modify or amend the Plan by means of the
following to reduce or eliminate such unfavorable accounting consequence
including, but not limited to:

 

 

6

 

 

                                                (i)            altering the option price per share
for any Offering Period, including an Offering Period underway at the time of
the change in Purchase Price including an alteration of the option price under
paragraph 7(b) to 85% of the fair market value of a share of the Common
Stock of the Company on the Exercise Date (without a lookback to the fair
market value on the Enrollment Date); and

 

                                                (ii)           shortening any Offering Period so
that Offering Period ends on a new Exercise Date, including an Offering Period
underway at the time of the Board action.

 

                Such
modifications or amendments shall not require stockholder approval or the
consent of any Plan participants.

 

                21.           Notices.  All notices or other communications by a
participant to the Company under or in connection with the Plan shall be deemed
to have been duly given when received in the form specified by the Company at
the location, or by the person, designated by the Company for the receipt
thereof.

 

                22.           Shareholder Approval.  Continuance of the Plan shall be subject to
approval by the shareholders of the Company within twelve months before or
after the date the Plan is adopted.  If
such shareholder approval is obtained at a duly held shareholders’ meeting, it
may be obtained by the affirmative vote of the holders of a majority of the
shares of the Company present or represented and entitled to vote thereon,
which approval shall be:

 

                                (a)           (1) solicited substantially in
accordance with Section 14(a) of the Securities Exchange Act of 1934, as
amended (the “Act”) and the rules and regulations promulgated thereunder, or
(2) solicited after the Company has furnished in writing to the holders
entitled to vote substantially the same information concerning the Plan as that
which would be required by the rules and regulations in effect under Section
14(a) of the Act at the time such information is furnished; and

 

                                (b)           obtained at or prior to the first
annual meeting of shareholders held subsequent to the first registration of
Common Stock under Section 12 of the Act.

 

                                In
the case of approval by written consent, it must be obtained by the unanimous
written consent of all shareholders of the Company, or by written consent of a
smaller percentage of shareholders but only if the Board determines, on the
basis of advice of the Company’s legal counsel, that the written consent of
such a smaller percentage of shareholders will comply with all applicable laws
and will not adversely affect the qualifications of the Plan under Section 423
of the Code.

 

                23.           Conditions Upon Issuance of Shares.  Shares shall not be issued with respect to
an option unless the exercise of such option and the issuance and delivery of
such shares pursuant thereto shall comply with all applicable provisions of
law, domestic or foreign, including, without limitation, the Securities Act of
1933, as amended, the Act, the rules and regulations promulgated thereunder,
and the requirements of any stock exchange upon which the shares may then be
listed, and shall be further subject to the approval of counsel for the Company
with respect to such compliance.

 

                                As
a condition to the exercise of an option, the Company may require the person
exercising such option to represent and warrant at the time of any such
exercise that the shares are being purchased only for investment and without
any present intention to sell or distribute such shares if, in the opinion of
counsel for the Company, such a representation is required by any of the
aforementioned applicable provisions of law.

 

                24.           Term of Plan.  The Plan shall become effective upon the
earlier to occur of its adoption by the Board of Directors or its approval by
the shareholders of the Company as described in paragraph 22.  It shall continue in effect for a term of
twenty (20) years unless sooner terminated under paragraph 20.

 

 

7EXHIBIT
10.151

 

MICRON TECHNOLOGY, INC.

 

2001 STOCK OPTION PLAN

 

 

                1.             Purposes
of the Plan.  The purposes of this
Stock Option Plan are:

 

                •              to attract and retain the best available personnel for
positions of substantial responsibility,

 

                •              to provide additional incentive to Employees,
Directors, and Consultants, and

 

                •              to promote the success of the Company’s business.

 

Options granted under the
Plan may be Incentive Stock Options or Nonstatutory Stock Options, as
determined by the Administrator at the time of grant.

 

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

 

                                (a)           “Administrator”
means the Board or any of its Committees as shall be administering the Plan, in
accordance with Section 4 of the Plan.

 

                                (b)           “Applicable
Laws” means the legal requirements relating to the administration of stock
option plans under Delaware corporate and securities laws and the Code.

 

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

 

                                (d)           “Change
in Control” means the acquisition by any person or entity, directly,
indirectly or beneficially, acting alone or in concert, of more than
thirty-five percent (35%) of the Common Stock of the Company outstanding at any
time.

 

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

 

                                (f)            “Committee”
means a Committee appointed by the Board in accordance with Section 4 of the
Plan.

 

                                (g)           “Common
Stock” means the Common Stock of the Company.

 

                                (h)           “Company”
means Micron Technology, Inc., a Delaware corporation.

 

                                (i)            “Consultant”
means any person, including an advisor, engaged by the Company or a Parent or
Subsidiary to render services and who is compensated for such services.

 

                                (j)            “Continuous
Status as an Employee or Consultant” means that the employment or
consulting relationship with the Company, any Parent, or Subsidiary, is not
interrupted or terminated. Continuous Status as an Employee or Consultant shall
not be considered interrupted in the case of (i) military leave, sick leave, or
any personal leave of absence approved by the Company, or (ii) transfers
between locations of the Company or between the Company, its Parent, any
Subsidiary, or any successor, or (iii) in the discretion of the Administrator
as specified at or prior to such occurrence, in the case of a spin-off, sale,
or disposition of the Optionee’s employer from the Company or any Parent or
Subsidiary. For purposes of Incentive Stock Options, no such leave may exceed
90 days, unless reemployment upon expiration of such leave is guaranteed by
statute or contract. If reemployment upon expiration of a leave of absence
approved by the Company is not so guaranteed, on the 91st day of such leave any
Incentive Stock Option held by the Optionee shall cease to be treated as an
Incentive Stock Option and shall be treated for tax purposes as a Nonstatutory
Stock Option.

 

                                (k)           “Director”
means a member of the Board.

 

                                (l)            “Disability”
means total and permanent disability as defined in Section 22(e)(3) of the
Code.

 

 

 

                                (m)          “Employee”
means any person, including Officers and Directors, employed by the Company or
any Parent or Subsidiary of the Company. Neither service as a Director nor
payment of a director’s fee by the Company shall be sufficient to constitute
“employment” by the Company.

 

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

 

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

 

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

 

(ii)     If the Common Stock is
quoted on the over-the-counter market or is regularly quoted by a recognized
securities dealer, but selling prices are not reported, the Fair Market Value
of a Share of Common Stock shall be the mean between the high bid and low asked
prices for the Common Stock on the last market trading day prior to the day of
determination, as reported by Bloomberg L.L.P. or
such other source as the Administrator deems reliable;

 

(iii)    In the absence of an
established market for the Common Stock, the Fair Market Value shall be determined
in good faith by the Administrator.

 

                                (p)           “Incentive
Stock Option” means an Option that qualifies as an incentive stock option
within the meaning of Section 422 of the Code and the regulations promulgated
thereunder.

 

                                (q)           “Nonstatutory
Stock Option” means an Option that does not qualify as an Incentive Stock
Option.

 

                                (r)            “Notice
of Grant” means a written notice evidencing certain terms and conditions of
an individual Option grant. The Notice of Grant is subject to the terms and
conditions of the Option Agreement.

 

                                (s)           “Officer”
means a person who is an officer of the Company within the meaning of Section
16 of the Exchange Act and the rules and regulations promulgated thereunder.

 

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

 

                                (u)           “Option
Agreement” means a written agreement between the Company and an Optionee
evidencing the terms and conditions of an individual Option grant. The Option
Agreement is subject to the terms and conditions of the Plan.

 

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

 

                                (w)          “Optionee”
means an Employee or Consultant who holds an outstanding Option.

 

                                (x)            “Parent”
means a “parent corporation”, whether now or hereafter existing, as defined in
Section 424(e) of the Code.

 

                                (y)           “Plan”
means this 2001 Option Plan.

 

                                (z)            “Rule
16b-3” means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3,
as in effect when discretion is being exercised with respect to the Plan.

 

                                (aa)         “Share”
means a share of the Common Stock, as adjusted in accordance with Section 12 of
the Plan.

 

 

2

 

 

                                (bb)         “Subsidiary”
means a “subsidiary corporation”, whether now or hereafter existing, as defined
in Section 424(f) of the Code. In the case of an Option that is not intended to
qualify as an Incentive Stock Option, the term “Subsidiary” shall also include
any other entity in which the Company, or any Parent or Subsidiary of the
Company has a significant ownership interest.

 

                3.             Stock
Subject to the Plan.  Subject to the
provisions of Section 12 of the Plan, the maximum aggregate number of Shares
which may be optioned and sold under the Plan is 30,000,000 Shares. The Shares
may be authorized, but unissued, or reacquired Common Stock.

 

                If an Option expires or becomes unexercisable without
having been exercised in full, the unpurchased Shares which were subject
thereto shall become available for future grant or sale under the Plan (unless
the Plan has terminated); provided, however, that Shares that have
actually been issued under the Plan shall not be returned to the Plan and shall
not become available for future distribution under the Plan.

 

                4.             Administration
of the Plan.

 

                                (a)           Administrator.
The Plan shall be administered by a Committee appointed by the Board (which
Committee shall consist of two or more directors) or, at the discretion of the
Board from time to time, the Plan may be administered by the Board.  It is intended that the directors appointed
to serve on the Committee shall be “non-employee directors” (within the meaning
of Rule 16b-3) and “outside directors” (within the meaning of Code Section
162(m)).  However, the mere fact that a
Committee member shall fail to qualify under either of the foregoing
requirements shall not invalidate any Option granted by the Committee which
Option is otherwise validly made under the Plan.  The members of the Committee shall be appointed by, and may be
changed at any time and from time to time in the discretion of, the Board.  The Board, in its discretion, may delegate
to a special Committee all or part of the Administrator’s authority and duties
with respect to grants and awards to individuals who at the time of grant are
not, and are not anticipated to become, either (i) “covered employees,” as
defined in Code Section 162(m)(3), or (ii) persons subject to the reporting and
other provisions of Section 16 of the Exchange Act.  The Board may revoke or amend the terms of a
delegation at any time but such action shall not invalidate any prior actions
of the delegate or delegates that were consistent with the terms of the Plan.

 

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

 

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

 

(ii)     to select the Employees,
Directors, and Consultants to whom Options may be granted hereunder;

 

(iii)    to determine whether and
to what extent Options are granted;

 

(iv)    to determine the number of
shares of Common Stock to be covered by each Option granted hereunder;

 

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

 

(vi)    to determine the terms and
conditions, not inconsistent with the terms of the Plan, of any award granted
hereunder. Such terms and conditions include, but are not limited to, the
exercise price, the time or times when Options may be exercised (which may be
based on performance criteria), any vesting acceleration or waiver of
forfeiture restrictions, and any restriction or limitation regarding any Option
or the shares of Common Stock relating thereto, based in each case on such
factors as the Administrator, in its sole discretion, shall determine;

 

(vii)   to construe and interpret
the terms of the Plan and awards granted pursuant to the Plan;

 

 

3

 

 

(viii)  to prescribe, amend, and
rescind rules and regulations relating to the Plan, including rules and
regulations relating to sub-plans established for the purpose of qualifying for
preferred tax treatment under foreign tax laws;

 

(ix)     to authorize any person
to execute on behalf of the Company any instrument required to effect the grant
of an Option previously granted by the Administrator;

 

(x)      to make all other
determinations deemed necessary or advisable for administering the Plan; and

 

(xi)     to allow Optionees to
satisfy withholding tax obligations by electing to have the Company withhold
from the Shares to be issued upon exercise of an Option that number of Shares
having a Fair Market Value equal to the amount required to be withheld. The
Fair Market Value of the Shares to be withheld shall be determined on the date
that the amount of tax to be withheld is to be determined. All elections by an
Optionee to have Shares withheld for this purpose shall be made in such form
and under such conditions as the Administrator may deem necessary or advisable.

 

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

 

                5.             Eligibility.  Nonstatutory Stock Options may be granted to
Employees, Directors, and Consultants. Incentive Stock Options may be granted
only to Employees. If otherwise eligible, an Employee or Consultant who has
been granted an Option may be granted additional Options.

 

                6.             Limitations.

 

                                (a)           Each
Option shall be designated in the Notice of Grant as either an Incentive Stock
Option or a Nonstatutory Stock Option. However, notwithstanding such
designations, to the extent that the aggregate Fair Market Value of Shares
subject to an Optionee’s Incentive Stock Options granted by the Company or any
Parent or Subsidiary, which become exercisable for the first time during any
calendar year (under all plans of the Company or any Parent or Subsidiary)
exceeds $100,000, such excess Options shall be treated as Nonstatutory Stock
Options. For purposes of this Section 6(a), Incentive Stock Options shall be
taken into account in the order in which they were granted, and the Fair Market
Value of the Shares shall be determined as of the time of grant.

 

                                (b)           Neither
the Plan nor any Option shall confer upon an Optionee any right with respect to
continuing the Optionee’s employment or consulting relationship with the
Company, nor shall they interfere in any way with the Optionee’s right or the
Company’s right to terminate such employment or consulting relationship at any
time, with or without cause.

 

                                (c)           The
following limitations shall apply to grants of Options to Employees:

 

(i)      No Employee shall be
granted, in any fiscal year of the Company, Options to purchase more than
2,000,000 Shares.

 

(ii)     The foregoing limitations
shall be adjusted proportionately in connection with any change in the
Company’s capitalization as described in Section 12.

 

                7.             Term
of Plan.  Subject to Section 18 of
the Plan, the Plan shall become effective upon the earlier to occur of its
adoption by the Board or its approval by the shareholders of the Company as
described in Section 18 of the Plan. It shall continue in effect for a term of
ten (10) years unless terminated earlier under Section 14 of the Plan.

 

                8.             Term
of Option.  The term of each Option
shall be stated in the Notice of Grant, but shall not exceed ten (10) years;
provided, however, that in the case of an Incentive Stock Option granted to an Optionee who, at the time Incentive
Stock Option is granted, owns stock representing more than ten percent (10%) of
the voting power of all classes of stock of the Company or any Parent or
Subsidiary, the term of the Incentive Stock Option shall not be longer than
five (5) years from the date of grant.

 

 

4

 

 

                9.             Option Exercise Price and Consideration.

 

                                (a)           Exercise Price.  The per share exercise price for the Shares
to be issued pursuant to exercise of an Option shall be determined by the
Administrator, but shall not be less than the Fair Market Value per share on
the date of grant of the Option. In the case of an Incentive Stock Option
granted to an Employee who, at the time the Incentive Stock Option is granted,
owns stock representing more than ten percent (10%) of the voting power of all
classes of stock of the Company or Parent or Subsidiary, the per share exercise
price shall be no less than 110% of the Fair Market Value per Share on the date
of grant.

 

                                (b)           Waiting
Period and Exercise Dates.  At the
time an Option is granted, the Administrator shall fix the period within which
the Option may be exercised and shall determine any conditions which must be
satisfied before the Option may be exercised. In doing so, the Administrator
may specify that an Option may not be exercised until the completion of a
service period.

 

                                (c)           Form
of Consideration. The Administrator shall determine the acceptable form of
consideration for exercising an Option, including the method of payment. The
Administrator shall determine the acceptable form of consideration at the time
of grant. Such consideration may consist entirely of:

 

(i)      cash;

 

(ii)     check;

 

(iii)    promissory note;

 

(iv)    other Shares which have
been owned by the Optionee for more than six months on the date of surrender
and have a Fair Market Value on the date of surrender equal to the aggregate
exercise price of the Shares as to which said Option shall be exercised;

 

(v)     to the extent permitted
under Regulation T of the Federal Reserve Board, and subject to applicable
securities laws and the Company’s adoption of such program in connection with
the Plan, the delivery of a properly executed exercise notice together with
such other documentation as the Administrator and the broker, if applicable,
shall require to effect a so-called “ cashless exercise” whereby the broker
sells the Option Shares and delivers cash sales proceeds to the Company in
payment of the exercise price and any applicable taxes (in which case the date
of exercise shall be deemed to be the date on which notice of exercise is
received by the Company, and the exercise price shall be delivered to the
Company on the settlement date);

 

(vi)    a reduction in the amount
of any Company liability to the Optionee, including any liability attributable
to the Optionee’s participation in any Company sponsored deferred compensation
program or arrangement;

 

(vii)   any combination of the
foregoing methods of payment; or

 

(viii)  such other consideration
and method of payment for the issuance of Shares to the extent approved by the
Administrator and permitted by Applicable Laws.

 

                10.           Exercise
of Option.

 

                                (a)           Procedure
for Exercise; Rights as a Shareholder. 
Any Option granted thereunder shall be exercisable according to the
terms of the Plan and at such times and under such conditions as determined by
the Administrator and set forth in the Option Agreement.

 

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

 

                                An Option shall be deemed exercised
when the Company receives: (i) notice of exercise (in accordance with the
Option Agreement) from the person entitled to exercise the Option, and (ii)
full payment for the Shares with respect to which the Option is exercised. Full
payment may consist of any consideration and method of payment authorized by
the Administrator and permitted by the Option Agreement and the Plan. Until the
stock certificate evidencing such Shares is issued (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company), no right to vote or receive dividends or any other
rights as a 

 

 

5

 

 

shareholder shall exist
with respect to the Optioned Stock, notwithstanding the exercise of the Option.
The Company shall issue (or cause to be issued) such stock certificate, either
in book entry form or in certificate form, promptly after the Option is
exercised. No adjustment will be made for a dividend or other right for which
the record date is prior to the date the Shares are issued, except as provided
in Section 12 of the Plan.

 

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

 

                                (b)           Termination
of Employment or Consulting Relationship. 
Upon termination of an Optionee’s Continuous Status as an Employee or
Consultant, other than upon the Optionee’s death or Disability, the Optionee
may exercise his or her Option, but only within such period of time as is
specified in the Notice of Grant, and only to the extent that the Optionee was
entitled to exercise it as the date of termination (but in no event later than
the expiration of the term of such Option as set forth in the Notice of Grant).
In the absence of a specified time in the Notice of Grant, the Option shall
remain exercisable for thirty 30 days following the Optionee’s termination of
Continuous Status as an Employee or Consultant. In the case of an Incentive
Stock Option, such period of time shall not exceed thirty (30) days from the
date of termination. If, at the date of termination, the Optionee is not
entitled to exercise his or her entire Option, the Shares covered by the
unexercisable portion of the Option shall revert to the Plan. If, after
termination, the Optionee does not exercise his or her Option within the time
specified herein, the Option shall terminate, and the Shares covered by such
Option shall revert to the Plan.

 

                                (c)           Disability
of Optionee.  In the event that an
Optionee’s Continuous Status as an Employee or Consultant terminates as a
result of the Optionee’s Disability, the Optionee may exercise his or her
Option at any time within twelve (12) months from the date of such termination,
but only to the extent that the Optionee was entitled to exercise it at the
date of such termination (but in no event later than the expiration of the term
of such Option as set forth in the Notice of Grant). If, at the date of
termination, the Optionee does not exercise his or her entire Option, the
Shares covered by the unexercisable portion of the Option shall revert to the
Plan. If, after termination, the Optionee does not exercise his or her option
within the time specified herein, the Option shall terminate, and the Shares covered
by such Option shall revert to the Plan.

 

                                (d)           Death
of Optionee.  In the event of the
death of an Optionee, the Option may be exercised at any time within twelve
(12) months following the date of death (but in no event later than the
expiration of the term of such Option as set forth in the Notice of Grant), by
the Optionee’s estate or by a person who acquired the right to exercise the
Option by bequest or inheritance, but only to the extent that the Optionee was
entitled to exercise the Option at the date of death. If, at any time of death,
the Optionee was not entitled to exercise his or her entire Option, the Shares
covered by the unexercisable portion of the Option shall immediately revert to
the Plan. If, after death, the Optionee’s estate or a person who acquired the
right to exercise the Option by bequest or inheritance does not exercise the
Option within the time specified herein, the Option shall terminate, and the
Shares covered by such Option shall revert to the Plan.

 

                                (e)           Suspension.  Any Optionee who is also a participant in
the Retirement at Micron (“RAM”) Section 401(k) Plan and who requests and
receives a hardship distribution from the RAM Plan, is prohibited from making,
and must suspend, his or her employee elective contributions and employee
contributions including, without limitation on the foregoing, the exercise of
any Option granted from the date of receipt by that employee of the RAM
hardship distribution.

 

                11.           Non-Transferability
of Options. Unless determined otherwise by the Administrator, an Option may
not be sold, pledged, assigned, hypothecated, transferred, or disposed of in
any manner other than by will or by the laws of descent or distribution and may
be exercised, during the lifetime of the Optionee, only by the Optionee. If the
Administrator makes an Option transferable, such Option shall contain such
additional terms and conditions as the Administrator deems appropriate.

 

                12.           Adjustments
Upon Changes in Capitalization, Dissolution, Corporate Transaction, or Change
in Control.

 

                                (a)           Changes in Capitalization. In
the event of a corporate transaction involving the Company (including, without
limitation, any stock dividend, stock split, extraordinary cash dividend,
recapitalization, reorganization, merger, consolidation, split-up, spin-off,
combination or exchange of shares), the authorization limits under Sections 3
and 6(c)(i) of the Plan shall be adjusted proportionately, and the
Administrator may adjust Options to preserve the benefits or potential benefits
of the Options.  Action by the
Administrator may include: (i) 

 

 

6

 

 

adjustment of the number
and kind of shares which may be delivered under the Plan; (ii) adjustment of
the number and kind of shares subject to outstanding Options; (iii) adjustment
of the exercise price of outstanding Options; and (iv) any other adjustments
that the Administrator determines to be equitable. In addition, the Administrator may, in its sole discretion, provide (i)
that Options will be settled in cash rather than Stock, (ii) that Options will
be assumed by another party to a transaction or otherwise be equitably
converted in connection with such transaction, or (iii) any combination of the
foregoing.  The Administrator’s
determination need not be uniform and may be different for different Optionees
whether or not such Optionees are similarly situated.  Without limiting the foregoing, n the event a stock
dividend or stock split is declared upon the Shares, the authorization limits
under Sections 3 and 6(c)(i) shall be increased proportionately, and the shares
of Stock then subject to each Option shall be increased proportionately without
any change in the aggregate purchase price therefor.

 

                                (b)           Dissolution
or Liquidation.  To the extent not
previously exercised, Options will terminate immediately prior to the
consummation of any proposed dissolution or liquidation of the Company. The
Board may, in the exercise of its sole discretion in such instances, declare
that any Option shall terminate as of a date fixed by the Board and give each
Optionee the right to exercise his or her Option as to all or any part of the
Optioned Stock, including Shares as to which the Option would not otherwise be
exercisable.  To the extent that this
provision causes Incentive Stock Options to exceed the dollar limitation set
forth in Section 6(a), the excess Options shall be deemed to be Nonstatutory
Stock Options.

 

                                (c)           Corporate
Transaction. In the event of a reorganization, merger, consolidation,
statutory share exchange or similar form of corporate transaction involving the
Company that requires the approval of the Company’s shareholders, whether for
such transaction or the issuance of securities in the transaction, or the sale
or other disposition of all or substantially all of the assets of the Company
to an entity that is not an affiliate of the Company, each outstanding Option
shall be assumed or an equivalent option or right substituted by the successor
corporation or a Parent or Subsidiary of the successor corporation. In the
event that the successor corporation refuses to assume or substitute for the
Option, the Optionee shall fully vest in and have the right to exercise the
Option as to all of the Optioned Stock, including Shares as to which it would
not otherwise be vested or exercisable. If an Option becomes fully vested and
exercisable in lieu of assumption or substitution in the event of a merger or
sale of assets, the Administrator shall notify the Optionee in writing or
electronically that the Option shall be fully vested and exercisable for a
period of thirty (30) days from the date of such notice, and the Option shall
terminate upon the expiration of such period or, in the discretion of the
Administrator, the Option shall be settled in cash rather than stock upon the
consummation of such corporate transaction. To the extent that this provision
causes Incentive Stock Options to exceed the dollar limitation set forth in
Section 6(a), the excess Options shall be deemed to be Nonstatutory Stock Options.

 

                                (d)           Change
in Control.  In the event of a
Change in Control, the unexercised portion of each Option then outstanding
shall become wholly vested and immediately exercisable. To the extent that this
provision causes Incentive Stock Options to exceed the dollar limitation set
forth in Section 6(a), the excess Options shall be deemed to be Nonstatutory
Stock Options.

 

                13.           Date
of Grant.  The date of grant of an
Option shall be, for all purposes, the date on which the Administrator makes
the determination granting such Option, or such other later date as is
determined by the Administrator. Notice of the determination shall be provided
to each Optionee within a reasonable time after the date of such grant.

 

                14.           Amendment
and Termination of the Plan.

 

                                (a)           Amendment and Termination.  Except as provided herein, the Board may at
any time amend, alter, suspend, or terminate the Plan without
shareholder approval; provided, however, that the Board may condition any
amendment or modification on the approval of shareholders of the Company if
such approval is necessary or deemed advisable with respect to tax, securities
or other applicable laws, policies or regulations.  No termination can affect
options previously granted, nor may an amendment make any change in any option
theretofore granted which adversely affects the rights of any Optionee, nor may
an amendment be made without prior approval of the shareholders of the Company
if such amendment would:

 

(i)      increase
the number of shares that may be issued under the Plan;

 

(ii)     change
the designation of the employees (or class of employees) eligible for
participation in the Plan; or

 

 

7

 

 

(iii)    materially
increase the benefits which may accrue to participants under the Plan.

 

                                (b)           Effect
of Amendment or Termination.  No
amendment, alteration, suspension, or termination of the Plan shall impair the
rights of any Optionee, unless mutually agreed otherwise between the Optionee
and the Administrator, which agreement must be in writing and signed by the
Optionee and the Company.

 

                15.           Conditions Upon Issuance of Shares.

 

                                (a)           Legal Compliance.  Shares shall not be issued pursuant to the
exercise of an Option unless the exercise of such Option and the issuance and delivery
of such Shares shall comply with all relevant provisions of law, including,
without limitation, the Securities Act of 1933, as amended, the Exchange Act,
the rules and regulations promulgated thereunder, Applicable Laws, and the
requirements of any stock exchange or quotation system upon which the Shares
may then be listed or quoted, and shall be further subject to the approval of
counsel for the Company with respect to such compliance.

 

                                (b)           Investment
Representations.  As a condition to
the exercise of an Option, the Company may require the person exercising such
Option to represent and warrant at the time of any such exercise that the
Shares are being purchased only for investment and without any present
intention to sell or distribute such Shares if, in the opinion of counsel for
the Company, such a representation is required.

 

                16.           Liability of Company.

 

                                (a)           Inability
to Obtain Authority. The inability of the Company to obtain authority from
any regulatory body having jurisdiction, which authority is deemed by the
Company’s counsel to be necessary to the lawful issuance and sale of any Shares
hereunder, shall relieve the Company of any liability in respect of the failure
to issue or sell such Shares as to which such requisite authority shall not
have been obtained.

 

                                (b)           Grants
Exceeding Allotted Shares.  If the
Optioned Stock covered by an Option exceeds, as of the date of grant, the
number of Shares which may be issued under the Plan without additional
shareholder approval, such Option shall be void with respect to such excess
Optioned Stock, unless shareholder approval of an amendment sufficiently
increasing the number of shares subject to the Plan is timely obtained in
accordance with Section 14(b) of the Plan.

 

                17.           Reservation
of Shares.  The Company, during the
term of this Plan, will at all times reserve and keep available such number of
Shares as shall be sufficient to satisfy the requirements of the Plan.

 

                18.           Shareholder
Approval.  Continuance of the Plan
shall be subject to approval by the shareholders of the Company within twelve
(12) months before or after the date the Plan is adopted. Such shareholder
approval shall be obtained in the manner and to the degree required under
applicable federal and Delaware law.

 

                19.           Restriction
on Repricing.  Without the prior
approval of the shareholders of the Company, the Administrator shall not
reprice any Options issued under the Plan through cancellation and regrant, by
lowering the exercise price, or by any other means.

 

 

8

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