Document:

Amended 1999 Non-Employee Director Stock Option Plan

 Exhibit 10.4 
 SYCAMORE NETWORKS, INC. 
 1999 NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN 
 1. Purpose. This Non-Qualified Stock Option Plan, to be known as the 1999 Non-Employee Director Stock Option Plan (hereinafter, this “Plan”) is
intended to promote the interests of Sycamore Networks, Inc. (hereinafter, the “Company”) by providing an inducement to obtain and retain the services of qualified persons who are not employees or officers of the Company to serve as
members of its Board of Directors (the “Board”). 
 2. Available Shares; Annual Increase in Shares. (a) The total number of
shares of Common Stock, par value $.001 per share, of the Company (the “Common Stock”) for which options may be granted under this Plan shall not exceed 1,500,000 shares (after giving effect to the three-for-one stock split
approved by the Board of Directors on August 17, 1999 and the three-for-one stock split effective February 11, 2000), subject to adjustment in accordance with paragraph 13 of this Plan. Shares subject to this Plan are authorized but
unissued shares or shares that were once issued and subsequently reacquired by the Company. If any options granted under this Plan are surrendered before exercise or lapse without exercise, in whole or in part, the shares reserved therefor shall
continue to be available under this Plan. 
 (b) As of August 1 of each year, commencing with the year 2000, the aggregate number of
Common Shares available for the grant of options under the Plan shall automatically be increased by the number to cause the total number of Common Shares then available to be restored to 1,500,000. 
 3. Administration. This Plan shall be administered by the Board or by a committee appointed by the Board (the “Committee”). In the event the Board fails
to appoint or refrains from appointing a Committee, the Board shall have all power and authority to administer this Plan. In such event, the word “Committee” wherever used herein shall be deemed to mean the Board. The Committee shall,
subject to the provisions of the Plan, have the power to construe this Plan, to determine all questions hereunder, and to adopt and amend such rules and regulations for the administration of this Plan as it may deem desirable. No member of the Board
or the Committee shall be liable for any action or determination made in good faith with respect to this Plan or any option granted under it. 
 4.
Automatic Grant of Options. Subject to the availability of shares under this Plan, 
 (a) each person who is or becomes a
member of the Board and who is not an employee or officer of the Company (a “Non-Employee Director”) shall be automatically granted on the latest of (i) the date such person is first elected to the Board, or (ii) August 17,
1999 (the “Approval Date”), (such later date being referred to herein as the “Grant Date”), without further action by 

 
the Board, an option to purchase 90,000 shares of the Common Stock (after giving effect to the three-for-one stock split approved by the Board of
Directors on August 17, 1999 and the three-for-one stock split effective February 11, 2000), and 
 (b) beginning on the date
of the Company’s annual meeting of shareholders for fiscal year 2000, each person receiving an option pursuant to clause (a) hereof who is a Non-Employee Director immediately following each successive annual meeting of stockholders
occurring after such person’s Grant Date during the term of this Plan shall be automatically granted on each such annual meeting date an option to purchase 30,000 shares of the Common Stock (after giving effect to the three-for-one stock
split approved by the Board of Directors on August 17, 1999 and the three-for-one stock split effective February 11, 2000). 
 The
options to be granted under this paragraph 4 shall be the only options ever to be granted at any time to such member under this Plan. Notwithstanding anything to the contrary set forth herein, if this Plan is not approved by a majority of the
Company’s stockholders present, or represented, and entitled to vote at the first meeting of Stockholders of the Company following the Approval Date, then the Plan and the options granted pursuant to this Section 4 shall terminate and
become void, and no further options shall be granted under this Plan. 
 5. Option Price. The purchase price of the stock covered by an Option granted
pursuant to this Plan shall be 100% of the Fair Market Value of such shares on the day the option is granted. The Option Price will be subject to adjustment in accordance with the provisions of paragraph 13 of this Plan. The Fair Market Value
of the Company’s Common Stock shall be determined as follows: (i) if the Company’s Common Stock is listed on any established stock exchange or a national market system, including without limitation The Nasdaq Global Market or The
Nasdaq Capital Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price of such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system for the date the Option is granted;
(ii) if the Company’s Common Stock is regularly quoted by an established quotation service for over-the-counter securities but selling prices are not reported, its Fair Market Value shall be the closing bid price (or average of bid prices)
as quoted on such service for the date the Option is granted; (iii) if the Common Stock is not publicly traded at the time an Option is granted under the Plan, its Fair Market Value shall be the fair value of the Common Stock as determined by
the Committee after taking into consideration all factors which it deems appropriate, including, without limitation, recent sale and offer prices of the Common Stock in private transactions negotiated at arm’s length. 
 6. Period of Option. Unless sooner terminated in accordance with the provisions of paragraph 8 of this Plan, an option granted hereunder shall expire on the date
which is ten (10) years after the date of grant of the option. 
 7. (a) Vesting of Shares and Non-Transferability of Options. Options granted
under this Plan shall be fully exercisable on the date of grant, subject to such restrictions or repurchase rights as defined below in paragraph 10. Options granted under clause (a) of paragraph 4 of this Plan shall vest in the optionee in
accordance with the following schedule, provided that the optionee has continuously served as a member of the Board through such vesting date: 
  

			
	 Vested Ratio
	 	 Date of Vesting

	 33 1/3%
	 	 One year from the date of grant

		
	 66 2/3%
	 	 Two years from the date of grant

		
	 100%
	 	 Three years from the date of grant

 provided, that, in the event that an optionee’s term as a director expires at the date of an annual
meeting of stockholders within the 90-day period preceding any vesting date, the installment of such option corresponding to such vesting date shall vest on the date of such meeting. 
 Options granted under clause (b) of paragraph 4 of the Plan shall vest in the optionee on the earlier of one year from the date of grant or the date
of the next meeting of stockholders, provided that the optionee has continuously served as a member of the Board through such vesting date. 
 Notwithstanding the foregoing provisions of this part (a) to paragraph 7, an option installment shall not vest with respect to any of the vesting periods described above in the event the optionee fails to attend at least 75% of
the meetings of the Board of Directors during such period. 
 The number of shares as to which options may be exercised shall be cumulative,
so that once the option shall become exercisable as to any shares it shall continue to be exercisable as to said shares, until expiration or termination of the option as provided in this Plan. 
 (b) Non-transferability. Any option granted pursuant to this Plan shall not be assignable or transferable other than by will or the laws of
descent and distribution or pursuant to a domestic relations order and shall be exercisable during the optionee’s lifetime only by him or her. 
 8.
Termination of Option Rights. 
 (a) Except as otherwise specified in the agreement relating to an option, in the event an optionee
ceases to be a member of the Board for any reason other than death or permanent disability, any then unvested and unexercised portion of options granted to such optionee shall immediately terminate and become void; any portion of an option which is
then vested but has not been exercised at the time the optionee so ceases to be a member of the Board may be exercised by the optionee within ninety (90) days of the date the optionee ceased to be a member of the Board; and all options shall
terminate after such ninety (90) days have expired. 
 (b) In the event that an optionee ceases to be a member of the Board by reason of
his or her death or permanent disability, all unexercised options shall be fully vested and exercisable by the optionee (or by the optionee’s personal representative, heir or legatee, in the event of death) until the scheduled expiration date
of the option. 

 9. Exercise of Option. Subject to the terms and conditions of this Plan and the option agreements, an option
granted hereunder shall be exercisable in whole or in part by giving written notice to the Company by mail or in person addressed to Sycamore Networks, Inc., at its principal executive offices, stating the number of shares with respect to which the
option is being exercised, accompanied by payment in full for such shares. Payment may be (a) in United States dollars in cash or by check, (b) in whole or in part in shares of the Common Stock of the Company already owned by the person or
persons exercising the option or shares subject to the option being exercised (subject to such restrictions and guidelines as the Board may adopt from time to time), valued at fair market value determined in accordance with the provisions of
paragraph 5 or (c) consistent with applicable law, through the delivery of an assignment to the Company of a sufficient amount of the proceeds from the sale of the Common Stock acquired upon exercise of the option and an authorization to
the broker or selling agent to pay that amount to the Company, which sale shall be at the participant’s direction at the time of exercise. There shall be no such exercise at any one time as to fewer than one hundred (100) shares or all of
the remaining shares then purchasable by the person or persons exercising the option, if fewer than one hundred (100) shares. The Company’s transfer agent shall, on behalf of the Company, prepare a certificate or certificates representing
such shares acquired pursuant to exercise of the option, shall register the optionee as the owner of such shares on the books of the Company and shall cause the fully executed certificate(s) representing such shares to be delivered to the optionee
as soon as practicable after payment of the option price in full. The holder of an option shall not have any rights of a stockholder with respect to the shares covered by the option, except to the extent that one or more certificates for such shares
shall be delivered to him or her upon the due exercise of the option. The Company shall not be required to issue fractional shares upon the exercise of the Option. 
 10. Unvested Share Repurchase Option. 
 (a) Vested Shares and Unvested Shares Defined. The total number of shares
multiplied by the Vested Ratio as set forth in the agreement relating to an option are “Vested Shares.” For purposes of this paragraph 10, the “Unvested Shares” are the number of shares acquired upon exercise of the option in
excess of the Vested Shares. 
 (b) Unvested Share Repurchase Option. In the event the optionee ceases to be a member of the Board for
any reason, with or without cause, or if the optionee or the optionee’s legal representative attempts to sell, exchange, transfer, pledge, or otherwise dispose of (other than pursuant to an ownership change) any shares acquired upon exercise of
the option which exceed the optionee’s Vested Shares, the Company shall have the right to repurchase the Unvested Shares under the terms and subject to the conditions set forth in this paragraph 10 (the “Unvested Share Repurchase
Option”). 
 (c) Exercise of Unvested Share Repurchase Option. The Company may exercise the Unvested Share Repurchase Option by
written notice to the optionee within sixty (60) days after (i) the optionee ceases to be a member of the Board or (ii) the Company has 

 
received notice of the attempted disposition. If the Company fails to give notice within such sixty (60) day period, the Unvested Share Repurchase
Option shall terminate unless the Company and the optionee have extended the time for the exercise of the Unvested Share Repurchase Option. The Unvested Share Repurchase Option must be exercised, if at all, for all of the Unvested Shares, except as
the Company and the optionee otherwise agree. 
 (d) Payment for Shares and Return of Shares. Payment by the Company to the optionee
shall be made in cash within thirty (30) days after the date of the mailing of the written notice of exercise of the Unvested Share Repurchase Option. For purposes of the foregoing, cancellation of any indebtedness of the optionee to the
Company shall be treated as payment to the optionee in cash to the extent of the unpaid principal-and any accrued interest canceled. The purchase price per share being repurchased by the Company shall be an amount equal to the optionee’s
original cost per share, as adjusted pursuant to paragraph 13. The shares being repurchased shall be delivered to the Company by the optionee at the same time as the delivery of the purchase price to the optionee. 
 (e) Assignment of Unvested Share Repurchase Option. The Company shall have the right to assign the Unvested Share Repurchase Option at any time,
whether or not such option is then exercisable, to one (1) or more persons as may be selected by the Company. 
 11. Escrow. 
 (a) Establishment of Escrow. To insure shares subject to the Unvested Share Repurchase Option will be available for repurchase, the Company may
require the optionee to deposit the certificate or certificates evidencing the shares which the optionee purchases upon exercise of the option with an escrow agent designated by the Company. If the Company does not require such deposit as a
condition of exercise of the option, the Company reserves the right at any time to require the optionee to so deposit the certificate or certificates in escrow. The Company shall bear the expenses of the escrow. 
 (b) Delivery of Shares to Optionee. Upon the written request by the optionee to the Company, the Company will instruct the agent to deliver
to the optionee as soon as practicable the shares no longer subject to such Unvested Share Repurchase Option restrictions. 
 (c) Notices
and Payments. In the event the shares held in escrow are subject to the Company’s exercise of the Unvested Share Repurchase Option, the notices required to be given to the optionee shall be given to the escrow agent and any payment required
to be given to the optionee shall be given to the escrow agent. Within thirty (30) days after payment by the Company, the escrow agent shall deliver the shares which the Company has purchased to the Company and shall deliver the payment
received from the Company to the optionee. 
 (d) Stock Dividends Subject to Option Agreement. If, from time to time, there is any
Adjustment as defined in paragraph 13 or other change in the character or amount of any of the outstanding stock of the Company which is subject to the provisions of this option then in such event any and all new substituted or additional securities
to which the optionee is entitled by reason of the 

 
optionee’s ownership of the shares acquired upon exercise of the option shall be immediately subject to the Unvested Share Repurchase Option with the
same force and effect as the shares subject to the Unvested Share Repurchase Option immediately before such event. 
 12. Legends. The Company may at
any time place legends referencing the Unvested Share Repurchase Option set forth in paragraph 10 above and any applicable federal or state securities law restrictions on all certificates representing shares of stock subject to the provisions of
this option. The optionee shall, at the request of the Company, promptly present to the Company any and all certificates representing shares acquired pursuant to the option in the possession of the optionee in order to effectuate the provisions of
this paragraph. Unless otherwise specified by the Company, legends placed on such certificates may include, but shall not be limited to, the following: 
 “THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO AN UNVESTED SHARE REPURCHASE OPTION IN FAVOR OF THE CORPORATION OR ITS ASSIGNEE SET FORTH IN AN AGREEMENT BETWEEN THE CORPORATION AND THE REGISTERED
HOLDER, OR SUCH HOLDER’S PREDECESSOR IN INTEREST, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF THIS CORPORATION.” 
 13. Adjustments
Upon Changes in Capitalization and Other Events. Upon the occurrence of any of the following events, an optionee’s rights with respect to options granted to him or her hereunder shall be adjusted as hereinafter provided: 
 (a) Stock Dividends and Stock Splits. If the shares of Common Stock shall be subdivided or combined into a greater or smaller number of shares or
if the Company shall issue any shares of Common Stock as a stock dividend on its outstanding Common Stock, the number of shares of Common Stock deliverable upon the exercise of options shall be appropriately increased or decreased proportionately,
and appropriate adjustments shall be made in the purchase price per share to reflect such subdivision, combination or stock dividend. 
 (b) Recapitalization Adjustments. If the Company is to be consolidated with or acquired by another entity in a merger, sale of all or substantially all of the Company’s assets or otherwise, each option granted under this plan
which is outstanding but unvested as of the effective date of such event shall become vested in full thirty (30) days prior to the effective date of such event. In the event of a reorganization, recapitalization, merger, consolidation, or any
other change in the corporate structure or shares of the Company, to the extent permitted by Rule 16b-3 under the Securities Exchange Act of 1934, adjustments in the number and kind of shares authorized by this Plan and in the number and kind
of shares covered by, and in the option price of outstanding options under this Plan necessary to maintain the proportionate interest of the optionee and preserve, without exceeding, the value of such option, shall be made. Notwithstanding the
foregoing, no such adjustment shall be made which would, within the meaning of any applicable provisions of the Internal Revenue Code of 1986, as amended, constitute a modification, extension or renewal of any Option or a grant of additional
benefits to the holder of an Option. 

 (c) Issuances of Securities. Except as expressly provided herein, no issuance 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 subject to options. No adjustments shall be
made for dividends paid in cash or in property other than securities of the Company. 
 (d) Adjustments. Upon the happening of any of
the foregoing events, the class and aggregate number of shares set forth in paragraph 2 of this Plan that are subject to options which previously have been or subsequently may be granted under this Plan shall also be appropriately adjusted to
reflect such events. The Board shall determine the specific adjustments to be made under this paragraph 13 and its determination shall be conclusive. 
 14. Restrictions on Issuance of Shares. Notwithstanding the provisions of paragraphs 7, 9 and 13 of this Plan, the Company shall have no obligation to deliver any certificate or certificates upon exercise of an option until one
of the following conditions shall be satisfied: 
 (a) The issuance of shares with respect to which the option has been exercised is at the
time of the issue of such shares effectively registered under applicable Federal and state securities laws as now in force or hereafter amended; or 
 (b) Counsel for the Company shall have given an opinion that the issuance of such shares is exempt from registration under Federal and state securities laws as now in force or hereafter amended; and the Company has complied with all
applicable laws and regulations with respect thereto, including without limitation all regulations required by any stock exchange upon which the Company’s outstanding Common Stock is then listed. 
 15. Legend on Certificates. The certificates representing shares issued pursuant to the exercise of an option granted hereunder shall carry such appropriate
legend, and such written instructions shall be given to the Company’s transfer agent, as may be deemed necessary or advisable by counsel to the Company in order to comply with the requirements of the Securities Act of 1933 or any state
securities laws. 
 16. Representation of Optionee. If requested by the Company, the optionee shall deliver to the Company written representations and
warranties upon exercise of the option that are necessary to show compliance with Federal and state securities laws, including representations and warranties to the effect that a purchase of shares under the option is made for investment and not
with a view to their distribution (as that term is used in the Securities Act of 1933). 
 17. Option Agreement. Each option granted under the
provisions of this Plan shall be evidenced by an option agreement, which agreement shall be duly executed and delivered on behalf of the Company and by the optionee to whom such option is granted. The option agreement shall contain such terms,
provisions and conditions not inconsistent with this Plan as may be determined by the officer executing it. 

 18. Termination and Amendment of Plan. Options may no longer be granted under this Plan after August 17,
2009, and this Plan shall terminate when all options granted or to be granted hereunder are no longer outstanding. The Board may at any time terminate this Plan or make such modification or amendment thereof as it deems advisable; provided,
however, that the Board may not, without approval by the affirmative vote of the holders of a majority of the shares of Common Stock present in person or by proxy and entitled to vote at a meeting, (a) increase the maximum number of
shares for which options may be granted under this Plan (except by adjustment pursuant to Section 13), (b) materially modify the requirements as to eligibility to participate in this Plan, (c) materially increase benefits accruing to
option holders under this Plan, (d) change the provisions of this Plan regarding the termination of the options or the times when they may be exercised, (e) change the designation of the class of persons eligible to receive options, or
otherwise change paragraph 4, or (f) amend this Plan in any manner which would cause Rule 16b-3 under the Securities Exchange Act (or any successor or amended provision thereof) to become inapplicable to this Plan; and provided
further that the provisions of this Plan specified in Rule 16b-3(c)(2)(ii)(A) (or any successor or amended provision thereof) under the Securities Exchange Act of 1934 (including without limitation, provisions as to eligibility, amount,
price and timing of awards) may not be amended more than once every six months, other than to comport with changes in the Internal Revenue Code, the Employee Retirement Income Security Act, or the rules thereunder. Termination or any modification or
amendment of this Plan shall not, without consent of a participant, affect his or her rights under an option previously granted to him or her. 
 19.
Withholding of Income Taxes. Upon the exercise of an option, the Company, in accordance with Section 3402(a) of the Internal Revenue Code, may require the optionee to pay withholding taxes in respect of amounts considered to be
compensation includible in the optionee’s gross income. 
 20. Compliance with Regulations. It is the Company’s intent that the Plan comply
in all respects with Rule 16b-3 under the Securities Exchange Act of 1934 (or any successor or amended provision thereof) and any applicable Securities and Exchange Commission interpretations thereof. If any provision of this Plan is deemed not
to be in compliance with Rule 16b-3, the provision shall be null and void. 
 21. Governing Law. The validity and construction of this Plan and
the instruments evidencing options shall be governed by the laws of the State of Delaware, without giving effect to the principles of conflicts of law thereof. 
 22. Approval of Board of Directors and Stockholders of the Company. 
 The Plan was adopted by the Board of Directors on August 17, 1999
and the stockholders of the Company as of September 20, 1999. 

 Register of Amendments to the Plan 
  

					
	 Paragraph No. and Change
	  	 Date of
 Board Approval
	  	 Date of
 Stockholder Approval

	 Plan Adopted
	  	August 17, 1999	  	September 20, 1999
			
	¶2 Increase number of shares under the Plan from 500,000 to 1,500,000 pursuant to a three-for-one stock split effective February 11, 2000.	  	January 26, 2000	  	N/A
			
	¶2 Increase number of shares to which the plan reserve will be restored on an annual basis from 500,000 to 1,500,000 pursuant to a three-for-one stock split effective February 11,
2000.	  	January 26, 2000	  	N/A
			
	¶4 Increase the number of options that each newly elected Board member is granted from 30,000 to 90,000 pursuant to a three-for-one stock split effective February 11, 2000.	  	January 26, 2000	  	N/A
			
	¶4 Increase the number of options that each Board member is granted on an annual basis from 10,000 to 30,000 pursuant to a three-for-one stock split effective February 11,
2000.	  	January 26, 2000	  	N/A
			
	¶5 Modification to definition of Fair Market Value	  	September 12, 2007	  	N/A1999 Stock Incentive Plan, As Amended

 Exhibit 10.5 
 SYCAMORE NETWORKS, INC. 
 1999 STOCK INCENTIVE PLAN, AS AMENDED 
 1. Purpose. This 1999 Stock Incentive Plan, as amended from time to time pursuant to Section 22 hereof (the “Plan”), is
intended to provide incentives: (a) to the officers and other employees of Sycamore Networks, Inc. (the “Company”), and of any present or future parent or subsidiary of the Company (collectively, “Related Corporations”), by
providing them with opportunities to purchase stock in the Company pursuant to options granted hereunder which qualify as “incentive stock options” under Section 422(b) of the Internal Revenue Code of 1986, as amended (the
“Code”) (“ISO” or “ISOs”); (b) to directors, officers, employees and consultants of the Company and Related Corporations by providing them with opportunities to purchase stock in the Company pursuant to options
granted hereunder which do not qualify as ISOs (“Non-Qualified Option” or “Non-Qualified Options”); (c) to directors, officers, employees and consultants of the Company and Related Corporations by providing them with awards
of stock in the Company (“Awards”); and (d) to directors, officers, employees and consultants of the Company and Related Corporations by providing them with opportunities to make direct purchases of stock in the Company
(“Purchases”). Both ISOs and Non-Qualified Options are referred to hereafter individually as an “Option” and collectively as “Options.” Options, Awards and authorizations to make Purchases are referred to hereafter
collectively as “Stock Rights.” As used herein, the terms “parent” and “subsidiary” mean “parent corporation” and “subsidiary corporation,” respectively, as those terms are defined in
Section 424 of the Code. 
 This Plan will become effective on the day before the date of the Company’s initial public offering
(the “Effective Date”), provided that amendments to this Plan will become effective in accordance with Section 22. 
 2.
Administration of the Plan. 
 A. Board or Committee Administration. The Plan will be administered by a committee or
committees appointed by the Board of Directors of the Company (the “Board”) and consisting of two or more members of the Board. The Board may delegate responsibility for administration of the Plan with respect to designated Stock Right
recipients to different committees, subject to such limitations as the Board deems appropriate. Members of a committee will serve for such term as the Board may determine, and may be removed by the Board at any time. The term “Committee,”
when used in this Plan, refers to the committee that has been delegated authority with respect to a matter. In determining the composition of any committee or subcommittee, the Board or committee, as the case may be, shall consider the desirability
of compliance with the compositional requirements of (i) Rule 16(b)-3 of the Securities and Exchange Commission with respect to Stock Rights grantees who are subject to the trading restrictions of Section 16(b) of the Securities and
Exchange Act of 1934 (the “1934 Act”) with respect to securities of the Company and (ii) Section 162(m) of the Code, but shall not be bound by such compliance. 
  

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 B. Committee Actions. Any Committee has full authority to administer the Plan within the
scope of its delegated responsibilities, including authority to interpret and construe any relevant provision of the Plan, to adopt rules and regulations that it deems necessary, to determine which individuals are eligible to participate and/or
receive Stock Rights under the Plan, to determine the amount and/or number of shares subject to such Stock Right, and to determine the terms of such Stock Right made under the Plan (which terms need not be identical). Decisions of a Committee made
within the discretion delegated to it by the Board are final and binding on all persons. 
 C. Delegation to Executive Officers.
To the extent permitted by applicable law, the Board may delegate to one or more executive officers of the Company the power to grant Stock Rights and exercise such other powers under the Plan as the Board may determine, provided that the Board
shall fix the maximum number of shares subject to Stock Rights and the maximum number of shares for any one participant to be made by such executive officers. 
 3. Eligible Employees and Others. ISOs may be granted to any employee of the Company or any Related Corporation. Those officers and directors of the Company who are not employees may not be granted ISOs
under the Plan. Non-Qualified Options, Awards and authorizations to make Purchases may be granted to any employee, officer or director (whether or not also an employee) or consultant of the Company or any Related Corporation. The Committee may take
into consideration a recipient’s individual circumstances in determining whether to grant an ISO, a Non-Qualified Option, an Award or an authorization to make a Purchase. The granting of any Stock Right to any individual will neither entitle
that individual to, nor disqualify him from, participation in any other grant of Stock Rights. Neither the Company nor any Related Corporation shall have any liability to an individual granted an Option hereunder (an “Optionee”), or to any
other party, if an Option (or any part thereof) which is intended to be an ISO is not an ISO. 
 4. Stock. The stock subject to
Stock Rights will be authorized but unissued shares of Common Stock of the Company, par value $.001 per share (the “Common Stock”), or shares of Common Stock reacquired by the Company in any manner. Subject to adjustment as provided in
Paragraph 21 and further increase as provided below, the aggregate number of shares which may be issued pursuant to the Plan is equal to (a) the number of shares of Common Stock remaining for issuance on the Effective Date under the
Company’s 1998 Incentive Stock Plan (the “Predecessor Plan”), plus (b) 25,000,000 shares of Common Stock, plus (c) an annual increase on the first day of each fiscal year of the Company equal to the lesser of
(i) 18,000,000 shares; (ii) 5% of the Company’s outstanding shares on that date; or (iii) a lesser amount determined by the Board. If any Stock Right granted under the Plan (including outstanding Stock Rights granted under the
Predecessor Plan) expires or terminates for any reason without having been exercised in full or ceases for any reason to be exercisable in whole or in part, the unpurchased shares subject to such Stock Right will again be available for grants of
Stock Rights under the Plan. No employee of the Company or any Related Corporation may be granted in any calendar year Stock Rights with respect to more than 1,500,000 shares of Common Stock, in the aggregate. The number of shares which may be
issued hereunder shall be set forth under “Plan History.” 
 5. Granting of Stock Rights. Stock Rights may be granted
under the Plan at any time after the Effective Date and before the tenth anniversary of the Effective Date, except that ISOs must be granted within ten (10) years from the date the Plan is adopted by the Board or the date the Plan is approved
by the Company’s stockholders, whichever is earlier. The date of grant of a Stock Right under the Plan will be the date specified by the Committee at the time it grants the Stock Right. The Committee may, with the consent 

  

 2 

 
of the Optionee, convert an ISO granted under the Plan to a Non-Qualified Option pursuant to paragraph 21; provided, however, that the Optionee’s
consent to such action shall not be required if the Committee determines that the action, taking into account any related action, will not materially and adversely affect the Optionee. Unless otherwise specified by the Committee in connection with a
particular grant, Options granted under the Plan are intended to qualify as performance-based under Section 162(m) of the Code and the regulations thereunder. 
 6. Terms of Stock Rights. Stock Rights will be evidenced by instruments (which need not be identical) in such forms as the Committee may from time to time approve. Such instruments must conform to or
incorporate by reference the terms set forth in paragraphs 7 through 22 hereof and may contain such other provisions as the Committee deems advisable which are not inconsistent with the Plan. In granting any Non-Qualified Option, the Committee may
specify that such Non-Qualified Option is subject to the restrictions set forth herein with respect to ISOs, or to such other termination and cancellation provisions as the Committee may determine. 
 7. Option Price. The exercise price per share will be fixed by the Committee, provided, however, that in no event will the exercise price
per share in the case of an ISO or an Option intended to qualify as performance-based compensation under Section 162(m) of the Code be less than one hundred percent (100%) of the fair market value per share of Common Stock on the Option
grant date. In the case of an ISO to be granted to an employee owning stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Related Corporation, the price per share
specified in the agreement relating to such ISO shall not be less than one hundred ten percent (110%) of the fair market value per share of Common Stock on the date of grant. 
 8. Dollar Limitation on ISOs. For so long as the Code provides, to the extent that the aggregate fair market value (determined as of the
respective date or dates of grant) of the shares with respect to which Options that would otherwise be ISOs are exercisable for the first time by any individual during any calendar year under the Plan (or any other plan of the Company or any Related
Corporation) exceeds the sum of One Hundred Thousand Dollars ($100,000) (or a greater amount permitted under the Code), whether by reason of acceleration or otherwise, those Options will not be treated as ISOs. In making this determination, Options
will be taken into account in the order in which they were granted. 
 9. Determination of Fair Market Value. The Fair Market
Value of the Company’s Common Stock shall be determined as follows: (i) if the Company’s Common Stock is listed on any established stock exchange or a national market system, including without limitation The Nasdaq Global Market or
The Nasdaq Capital Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price of such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system for the date the Option is granted;
(ii) if the Company’s Common Stock is regularly quoted by an established quotation service for over-the-counter securities but selling prices are not reported, its Fair Market Value shall be the closing bid price (or average of bid prices)
as quoted on such service for the date the Option is granted; (iii) if the Common Stock is not publicly traded at the time an Option is granted under the Plan, its Fair Market Value shall be the fair value of the Common Stock as determined by
the Committee after taking into consideration all factors which it deems appropriate, including, without limitation, recent sale and offer prices of the Common Stock in private transactions negotiated at arm’s length. 
  

 3 

 10. Option Duration. Subject to earlier termination as provided in paragraph 19, each
Option will expire on the date specified by the Committee, but not more than (i) ten years from the date of grant in the case of Non-Qualified Options, (ii) ten years from the date of grant in the case of ISOs generally and (iii) five
years from the date of grant in the case of ISOs granted to an employee owning stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Related Corporation. Subject to earlier
termination as provided in paragraph 19, the term of each ISO will be the term set forth in the original instrument granting such ISO, except with respect to any part of such ISO that is converted into a Non-Qualified Option pursuant to paragraph
21. 
 11. Exercise of Option. Subject to the provisions of paragraphs 12 through 21, each Option granted under the Plan will
be exercisable as follows: 
 A. Right to Exercise. The Option will either be fully exercisable on the date of grant, subject to
such restrictions or repurchase rights as defined below in paragraph 15, or will become exercisable thereafter in such installments as the Committee may specify. 
 B. Partial Exercise. Each Option or installment may be exercised at any time or from time to time, in whole or in part, for up to the total number of shares with respect to which it is then exercisable.

 12. Restricted Stock. 
 (a) Grants. The Committee may grant Stock Rights entitling recipients to acquire shares of Common Stock, subject to the right of the Company to repurchase all or part of such shares at their issue price or other stated or
formula price (or to require forfeiture of such shares if issued at no cost) from the recipient in the event that conditions specified by the Committee in the applicable Stock Rights agreement are not satisfied prior to the end of the applicable
restriction period or periods established by the Committee for such Stock Rights (each, a “Restricted Stock Award”). 
 (b)
Terms and Conditions. The Committee shall determine the terms and conditions of any such Restricted Stock Award, including the conditions for repurchase (or forfeiture) and the issue price, if any. Each Restricted Stock Award granted
pursuant to the Plan shall be subject to forfeiture if, in the discretion of the Committee, the recipient of such award has not, within a reasonable period of time following the grant of such award, executed any instrument required by the Committee
to be executed in connection with such award. Any stock certificates issued in respect of a Restricted Stock Award shall be registered in the name of the recipient and, unless otherwise determined by the Committee, deposited by the recipient,
together with a stock power endorsed in blank, with the Company (or its designee). At the expiration of the applicable restriction periods, the Company (or such designee) shall deliver the certificates no longer subject to such restrictions to the
recipient or if the recipient has died, to the beneficiary designated, in a manner determined by the Committee, by the recipient to receive amounts due or exercise rights of the recipient in the event of the recipient’s death (the
“Designated Beneficiary”). In the absence of an effective designation by a recipient, Designated Beneficiary shall mean the recipient’s estate. 
 13. Other Stock-Based Awards. The Committee shall have the right to grant other Stock Rights based upon the Common Stock having such terms and conditions as the Committee may determine, including the
grant of shares based upon certain conditions, the grant of securities convertible into Common Stock and the grant of stock appreciation rights. 
  

 4 

 14. Means of Exercising Stock Rights. A Stock Right (or any part or installment
thereof) shall be exercised by giving written notice to the Company at its principal office address. Such written notice shall be signed by the holder and shall be delivered in person or by certified or registered mail, return receipt requested, to
the Chief Financial Officer of the Company, or other authorized representative of the Related Corporation, prior to the termination of the Stock Right as set forth in this Plan, accompanied by full payment of the exercise price for the number of
shares being purchased (a) in United States dollars in cash or by check, (b) at the discretion of the Committee, through delivery of mature shares (i.e. held for six months or more) of Common Stock having a fair market value equal as of
the date of the exercise to the cash exercise price of the Stock Right, (c) at the discretion of the Committee, by delivery of a promissory note, the terms of which (including the interest rate and the terms of repayment) shall be established
by the Committee, (d) at the discretion of the Committee, by delivery of notice in such form as the Company may designate together with irrevocable instructions to a broker to promptly deliver to the Company the amount of sale or loan proceeds
to pay the exercise price or (e) at the discretion of the Committee, by any combination of (a), (b), (c) or (d) above. If the Committee exercises its discretion to permit payment of the exercise price of an ISO by means of the methods
set forth in clauses (b), (c), (d) or (e) of the preceding sentence, such discretion shall be exercised in writing at the time of the grant of the ISO in question. The holder of a Stock Right shall not have the rights of a stockholder with
respect to the shares covered by such Stock Right until the date of issuance of such shares. Except as expressly provided in paragraph 21 with respect to changes in capitalization and stock dividends, no adjustment will be made for dividends or
similar rights for which the record date is before the date such stock certificate is issued. 
 A. Withholding. At the time
the Stock Right is exercised, in whole or in part, or at any time thereafter as requested by the Company, the holder shall make adequate provision for foreign, federal and state tax withholding obligations of the Company, if any, at the minimum
statutory withholding rate which arises in connection with the Stock Right, including, without limitation, obligations arising upon (i) the exercise, in whole or in part, of the Stock Right, (ii) the transfer, in whole or in part, of any
shares acquired on exercise of the Stock Right, (iii) the operation of any law or regulation providing for the imputation of interest, or (iv) the lapsing of any restriction or making of any election with respect to any shares acquired on
exercise of the Stock Right. Except as the Committee may otherwise provide in a Stock Right agreement, when the Common Stock is registered under the 1934 Act, a holder may satisfy such tax obligations in whole or in part by delivery of shares of
Common Stock, including shares retained from the Stock Right creating the tax obligations, valued at their fair market value. The Company may, to the extent permitted by law, deduct such tax obligations from any payment of any kind otherwise due to
an individual. 
 B. Certificate Registration. The certificate or certificates for the shares as to which the Stock Right shall
be exercised shall be registered in the name of the Optionee, or, if applicable, the heirs of the Optionee. 
 C. Restrictions on Grant
of the Option and Issuance of Shares. The grant of the Option and the issuance of the shares upon exercise of the Option shall be subject to compliance with all applicable requirements of federal or state law with respect to such securities.
The Option may not be exercised if the issuance of shares upon such exercise would constitute a violation of any applicable 

  

 5 

 
federal or state securities laws or other law or regulations. In addition, no Option may be exercised unless (i) a registration statement under the
Securities Act of 1933, as amended (the “Securities Act”), shall at the time of exercise of the Option be in effect with respect to the shares issuable upon exercise of the Option or (ii) in the opinion of legal counsel to the
Company, the shares issuable upon exercise of the Option may be issued in accordance with the terms of an applicable exemption from the registration requirements of the Securities Act. THE OPTIONEE IS CAUTIONED THAT THE OPTION MAY NOT BE EXERCISABLE
UNLESS THE FOREGOING CONDITIONS ARE SATISFIED. ACCORDINGLY, THE OPTIONEE MAY NOT BE ABLE TO EXERCISE THE OPTION WHEN DESIRED EVEN THOUGH THE OPTION IS VESTED. As a condition to the exercise of the Option, the Company may require the Optionee to
satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any applicable law or regulation and to make any representation or warranty with respect thereto as may be requested by the Company. 
 D. Fractional Shares. The Company shall not be required to issue fractional shares upon the exercise of the Option. 
 15. Unvested Share Repurchase Option. 
 A. Vested Shares and Unvested Shares Defined. The total number of shares multiplied by the Vesting Ratio as set forth in the Stock Right agreement are “Vested Shares.” For purposes of this paragraph 15, the
“Unvested Shares” are the number of shares acquired upon exercise of the Stock Right in excess of the Vested Shares. 
 B.
Unvested Share Repurchase Option. In the event the Optionee’s employment with the Company or any Related Corporation is terminated for any reason, with or without cause, or if the Optionee or the Optionee’s legal representative
attempts to sell, exchange, transfer, pledge, or otherwise dispose of (other than pursuant to an Ownership Change) any shares acquired upon exercise of the Option which exceed the Optionee’s Vested Shares, the Company shall have the right to
repurchase the Unvested Shares under the terms and subject to the conditions set forth in this paragraph 15 (the “Unvested Share Repurchase Option”). 
 D. Exercise of Unvested Share Repurchase Option. The Company may exercise the Unvested Share Repurchase Option by written notice to the Optionee within sixty (60) days after (i) such
termination of employment or (ii) the Company has received notice of the attempted disposition. If the Company fails to give notice within such sixty (60)-day period, the Unvested Share Repurchase Option shall terminate unless the Company and
the Optionee have extended the time for the exercise of the Unvested Share Repurchase Option. The Unvested Share Repurchase Option must be exercised, if at all, for all of the Unvested Shares, except as the Company and the Optionee otherwise agree.

 E. Payment for Shares and Return of Shares. Payment by the Company to the Optionee shall be made in cash within thirty
(30) days after the date of the mailing of the written notice of exercise of the Unvested Share Repurchase Option. For purposes of the foregoing, cancellation of any indebtedness of the Optionee to any Participating Company shall be treated as
payment to the Optionee in cash to the extent of the unpaid principal-and any accrued interest canceled. The purchase price per share being repurchased by the Company shall be an amount equal to the Optionee’s original cost per share, as
adjusted pursuant to paragraph 21. The shares being repurchased shall be delivered to the Company by the Optionee at the same time as the delivery of the purchase price to the Optionee. 
  

 6 

 F. Assignment of Unvested Share Repurchase Option. The Company shall have the right to
assign the Unvested Share Repurchase Option at any time, whether or not such option is then exercisable, to one (1) or more persons as may be selected by the Company. 
 16. Escrow. 
 A.
Establishment of Escrow. To insure shares subject to the Unvested Share Repurchase Option will be available for repurchase, the Company may require the Optionee to deposit the certificate or certificates evidencing the shares which the
Optionee purchases upon exercise of the Option with an escrow agent designated by the Company. If the Company does not require such deposit as a condition of exercise of the Option, the Company reserves the right at any time to require the Optionee
to so deposit the certificate or certificates in escrow. The Company shall bear the expenses of establishing and maintaining the escrow. 
 B. Delivery of Shares to Optionee. Upon the written request by the Optionee to the Company, the Company will instruct the agent to deliver to the Optionee as soon as practicable the shares no longer subject to such Unvested
Share Repurchase Option restrictions. 
 C. Notices and Payments. In the event the shares held in escrow are subject to the
Company’s exercise of the Unvested Share Repurchase Option, the notices required to be given to the Optionee shall be given to the escrow agent and any payment required to be given to the Optionee shall be given to the escrow agent. Within
thirty (30) days after payment by the Company, the escrow agent shall deliver the shares which the Company has purchased to the Company and shall deliver the payment received from the Company to the Optionee. 
 17. Stock Dividends Subject to Option Agreement. If, from time to time, there is any Adjustment as defined in paragraph 21 or other
change in the character or amount of any of the outstanding stock of the Related Corporation which is subject to the provisions of this Option then in such event any and all new substituted or additional securities to which the Optionee is entitled
by reason of the Optionee’s ownership of the shares acquired upon exercise of the Option shall be immediately subject to the Unvested Share Repurchase Option with the same force and effect as the shares subject to the Unvested Share Repurchase
Option immediately before such event. 
 18. Legends. The Company may at any time place legends referencing the Unvested
Share Repurchase Option set forth in paragraph 15 above and any applicable federal or state securities law restrictions on all certificates representing shares of stock subject to the provisions of this Option Agreement. The Optionee shall, at the
request of the Company, promptly present to the Company any and all certificates representing shares acquired pursuant to the Option in the possession of the Optionee in order to effectuate the provisions of this paragraph. Unless otherwise
specified by the Company, legends placed on such certificates may include, but shall not be limited to, the following: 
 THE SHARES
REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO AN UNVESTED SHARE REPURCHASE OPTION IN FAVOR OF THE CORPORATION OR ITS ASSIGNEE SET FORTH IN AN AGREEMENT BETWEEN THE CORPORATION AND THE REGISTERED HOLDER, OR SUCH HOLDER’S PREDECESSOR IN
INTEREST, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF THIS CORPORATION. 
  

 7 

 19. Change in Service. The following Provision shall govern the treatment of Stock
Rights granted under this Plan in the event of a Change in Service as described below. 
 A. Cessation of Service. Except to
the extent otherwise specifically provided in the documents evidencing the Option, any outstanding Option exercisable for fully vested shares at the time the Optionee ceases to provide services to the Company or a Related Corporation as an employee,
a non-employee Board member or a consultant for any reason other than disability, death or misconduct, then the Optionee will have a period of three (3) months following the date of such cessation of service during which to exercise each
outstanding Option held by such Optionee. 
 B. Disability. Should such service terminate by reason of disability, then any
outstanding Option exercisable by the Optionee for fully vested shares at the time the Optionee ceases to provide services to the Company may be subsequently exercised by the Optionee during the six (6)-month period following the date of such
cessation of service. However, should such disability be deemed to constitute permanent disability, then the period during which each outstanding option for fully vested shares held by the Optionee is to remain exercisable will be extended by an
additional six (6) months so that the exercise period will be the twelve (12)-month period following the date of the Optionee’s cessation of service by reason of such permanent disability. The term “Permanent Disability,” as used
in this Plan, means a disability expected to result in death or that has lasted or can be expected to last for a continuous period of twelve (12) months or more, as described in Section 22(e)(3) of the Code. 
 C. Death. Any Option exercisable for fully vested shares by the Optionee at the time of death may be subsequently exercised by the personal
representative of the Optionee’s estate or by the person or persons to whom the Option is transferred pursuant to the Optionee’s will or in accordance with the laws of descent and distribution during the twelve (12)-month period following
the date of the Optionee’s death. 
 D. Misconduct. Should the Optionee’s service be terminated for misconduct, then
all outstanding Options at the time held by the Optionee will immediately terminate and cease to be outstanding. The term “Misconduct,” when used in this Plan, means the commission of any act of fraud, embezzlement or dishonesty by the
Optionee, any unauthorized use or disclosure by such person of confidential information or trade secrets of the Company (or any Related Corporation), or any other intentional misconduct by such person adversely affecting the business or affairs of
the Company or any Related Corporation in a material manner. The foregoing definition shall not be deemed to be inclusive of all the acts or omissions which the Company or any Related Corporation may consider as grounds for the dismissal or
discharge of any Optionee or other person in the service of the Company or any Related Corporation. 
 E. Leave of Absence. For
purposes of this paragraph 19, a bona fide leave of absence (such as those attributable to illness, military obligations or governmental service) with the written consent of the Committee, or to the extent required by statute, will not be considered
an interruption of service under the Plan. For the purposes of this paragraph, the leave of absence provision described 

  

 8 

 
above shall not apply to a consultant or advisor of the Company or any Related Corporation. Additionally, with respect to Options that are intended to
qualify as ISOs, the leave of absence permitted under this paragraph shall not exceed the period of time set forth in Treas. Reg. § 1.421-7(h)(2) or any successor thereto. 
 F. Modification of Hours Worked. This Section 19F applies only to Stock Rights agreements issued on or after November 13, 2000.
If an Optionee’s service with the Company changes such that the number of hours that the Optionee customarily works is increased or decreased for a period of five months or more, the Vesting Ratio reflected in the Stock Rights agreement shall
be amended in accordance with the number of hours worked as set forth below. The Vesting Ratio will be amended upon the Company’s determination that the work schedule change is expected to last for a period of five months or more. For the
purposes of this Plan, “Full Time” service is defined as customarily working 35 hours or more per week. “Part Time” service is defined as customarily working 34 hours or fewer per week. 
 (i) Full Time to Part Time Service. In the event the Optionee’s customary work schedule falls below Full Time, the Vesting Ratio
reflected in the Stock Rights agreement will be reduced as follows: (a) if the Optionee customarily works between 25 and 34 hours per week for a period of five months or more, the Vesting Ratio in the Optionee’s Stock Rights agreement will
be reduced to 75% of the previous Vesting Ratio, or (b) in the event that the Optionee customarily works less than 25 hours per week for a period of five months or more, the Vesting Ratio in the Optionee’s Stock Rights agreement will be
reduced to 50% of the previous Vesting Ratio. 
 (ii) Decrease in Part Time Service. If the Optionee’s customary work
schedule decreases from between 25 and 34 hours per week to fewer than 25 hours per week, the Vesting Ratio in the Optionee’s Stock Rights agreement will be decreased to 66% of the previous Vesting Ratio (rounded to the nearest whole or half
percentage). 
 (iii) Part Time to Full Time Service. In the event the Optionee’s customary work schedule increases from
Part Time to Full Time, the Vesting Ratio reflected in the Stock Rights agreement will be increased as follows: (a) if the Optionee’s customary work schedule increases from fewer than 25 hours per week to 35 hours or more per week, the
Vesting Ratio in the Optionee’s Stock Rights agreement will be increased to 200% of the previous Vesting Ratio, or (b) if the Optionee’s customary work schedule increases from between 25 and 34 hours per week to 35 hours or more per
week, the Vesting Ratio in the Optionee’s Stock Rights agreement will be increased to 133% of the previous Vesting Ratio (rounded to the nearest whole percentage). 
 (iv) Increase in Part Time Service. If the Optionee’s customary work schedule increases from fewer than 25 hours per week to between 25 and 34 hours per week, the Vesting Ratio in the
Optionee’s Stock Rights agreement will be increased to 150% of the previous Vesting Ratio. 
 20. Assignability. No
Option shall be assignable or transferable by the Optionee except by will or by the laws of descent and distribution. During the lifetime of the Optionee each Option may be exercised only by the Optionee. 
  

 9 

 21. Adjustments. Upon the occurrence of any of the following events, an Optionee’s
rights with respect to Options granted hereunder will be adjusted as hereinafter provided, unless otherwise specifically provided in the written agreement between the Optionee and the Company relating to such Option. 
 A. Recapitalization. If any change is made to the Common Stock issuable under the Plan by reason of any stock split, stock dividend,
recapitalization, combination of shares, exchange of shares or other change affecting the outstanding Common Stock as a class without receipt of consideration, then appropriate adjustments shall be made to (i) the maximum number and/or class of
securities to issuable under the Plan, (ii) the number and/or class of securities and, if applicable, price per share in effect under each outstanding Stock Right under the Plan and (iii) the maximum number of shares issuable to one
individual pursuant to paragraph 4. 
 B. Transfer of Control and Other Transactions. A “Transfer of Control” will be
deemed to have occurred in the event any of the following occurs with respect to the Company (which for this purpose includes a successor whose stock is issued under the Plan): 
 (i) the direct or indirect sale or exchange by the stockholders in a single transaction or a series of transactions of the Company of all or
substantially all of the stock of the Company where the stockholders of the Company immediately before such sale or exchange do not retain, directly or indirectly and in substantially the same proportion, beneficial interest in voting stock of the
Company or surviving entity representing at least a majority of the voting power of all voting stock of the Company; 
 (ii) a merger,
consolidation, reorganization or similar transaction in which the stockholders of the Company immediately before such merger do not retain, directly or indirectly and in substantially the same proportion, beneficial interest in the voting stock of
the surviving entity representing a majority of the voting power of all voting stock; or 
 (iii) the sale, exchange or transfer (including,
without limitation, pursuant to a liquidation or dissolution) of all or substantially all of the Company’s assets (other than a sale, exchange, or transfer to one (1) or more corporations where the stockholders of the Company immediately
before such sale, exchange, or transfer retain, directly or indirectly and in substantially the same proportion, beneficial interest in voting stock of the corporation(s) to which the assets were transferred) representing at least a majority of the
combined voting power of all voting stock of such entity. 
 In the event of any Transfer of Control, each outstanding Option, shall
automatically accelerate so that each such Option shall, immediately prior to the effective date of the Transfer of Control, become fully exercisable with respect to the total number of shares of Common Stock at the time subject to such Option and
may be exercised for any or all of those shares as fully vested shares of Common Stock, subject to the consummation of the Transfer of Control. Notwithstanding the foregoing, an Option shall not so accelerate if and to the extent: (i) such
Option is assumed or otherwise continued in full force or effect by the successor corporation (or parent thereof) pursuant to the terms of the Transfer of Control, (ii) such Option is replaced with a cash incentive program of the successor
corporation which preserves the spread existing at the time of the Transfer of Control on the shares of Common Stock for which the Option is not otherwise at that time exercisable and provides for subsequent payout in accordance with the same
vesting schedule applicable to those option shares or (iii) the acceleration of such Option is subject to other limitations imposed by the 

  

 10 

 
Committee at the time of the Option grant. All outstanding repurchase rights outstanding on Common Stock previously issued under the Plan will also terminate
automatically, and such shares will immediately vest in full, immediately before a Transfer of Control, except to the extent: (i) those repurchase rights are assigned to the successor corporation (or parent thereof) or otherwise continue in
full force and effect pursuant to the terms of the Transfer of Control or (ii) such accelerated vesting is precluded by other limitations imposed by the Committee at the time the repurchase right is issued. 
 Notwithstanding the foregoing, the number of Vested Shares shall, immediately prior to the Transfer of Control, be increased by the number of Shares that
would have become Vested Shares on the date twelve months after the consummation of the Transfer of Control, provided that if the Optionee has been employed by the Company for less than twelve months immediately prior to the Transfer of Control, the
number of additional Shares that are Vested Shares shall be increased by the number of Shares that would have become Vested Shares on the date six months after the consummation of the Transfer of Control. 
 If, following the Transfer of Control, the successor corporation (or parent thereof) terminates the employment of the Optionee without Cause, upon such
termination all of the Shares shall become Vested Shares. “Cause” for this purpose shall mean the willful engaging by the Optionee in illegal conduct or gross misconduct which is materially injurious to the successor corporation (or parent
thereof). 
 C. Modification of ISOs. Notwithstanding the foregoing, any adjustments made pursuant to subparagraphs A, B or C
with respect to ISOs shall be made in a manner intended to avoid any adverse tax consequences for the holders of such ISOs. If the Committee determines that such adjustments made with respect to ISOs would constitute a modification, extension, or
renewal (as those terms are defined in Section 424 of the Code) of such ISOs, it may refrain from making such adjustments. 
 D.
Acceleration of Vesting. The Committee shall have the right to accelerate the Vesting Ratio as defined in the Stock Rights Agreement of any installment of any Stock Right; provided that the Committee shall not, without the consent of an
Optionee, accelerate the permitted exercise date of any installment of any Option granted to any employee as an ISO (and not previously converted into a Non-Qualified Option pursuant to this paragraph 21 if such acceleration would adversely affect
the Optionee’s rights thereunder. 
 E. Dissolution or Liquidation. In the event of the proposed dissolution or
liquidation of the Company, the Board shall upon written notice to the Optionee, provide that all then unexercised Options will (i) become exercisable in full as of a specified time at least 10 business days prior to the effective date of such
liquidation or dissolution and (ii) terminate effective upon such liquidation or dissolution, except to the extent exercised before such effective date. The Board may specify the effect of a liquidation or dissolution on any Awards or Purchases
granted under the Plan at the time of the grant of such Award or Purchase. 
 F. Issuances of Securities. Except as expressly
provided herein, no issuance 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
subject to Options. No adjustments shall be made for dividends paid in cash or in property other than securities of the Company. 
  

 11 

 G. Adjustments. Upon the happening of any of the events described in subparagraphs A or B
above, the class and aggregate number of shares set forth in paragraph 4 hereof that are subject to Stock Rights which previously have been or subsequently may be granted under the Plan (including outstanding Options incorporated into this Plan from
the Predecessor Plan) will also be appropriately adjusted to reflect the events described in such subparagraphs. The Committee or the Successor Board shall determine the specific adjustments to be made under this paragraph 21 and, subject to
paragraph 2, its determination shall be conclusive. 
 If any person owning restricted Common Stock obtained by exercise of a Stock Right
made hereunder receives shares or securities or cash in connection with a corporate transaction described in subparagraphs A, B or C above as a result of owning such restricted Common Stock, such shares or securities or cash shall be subject to all
of the conditions and restrictions applicable to the restricted Common Stock with respect to which such shares or securities or cash were issued, unless otherwise determined by the Committee. 
 22. Term and Amendment of Plan. The Plan will expire on the tenth anniversary of the Effective Date (except as to Options
outstanding on that date). Subject to the provisions of paragraph 5 above, Stock Rights other than Options intended to qualify as performance-based compensation under Section 162(m) of the Code may be granted under the Plan before the date of
stockholder approval of the Plan. The Board shall have complete and exclusive power and authority to amend or modify the Plan in any or all respects. However, no such amendment or modification may adversely affect the rights and obligations with
respect to Stock Rights at the time outstanding under the Plan unless the grantee consents to such amendment or modification. In addition, certain amendments may, as determined by the Board in its sole discretion, require stockholder approval
pursuant to applicable laws or regulations. 
 Stock Rights other than Options intended to qualify as performance-based compensation under
Section 162(m) of the Code may be granted under the Plan in excess of the number of shares then available for issuance under the Plan, provided that any excess shares actually issued shall be held in escrow until there is obtained stockholder
approval of an amendment sufficiently increasing the number of shares of Common Stock available for issuance under the Plan. If such stockholder approval is not obtained within twelve (12) months after the date the first such excess issuances
are made, then (i) any unexercised Options granted on the basis of such excess shares shall terminate and cease to be outstanding and (ii) the Company shall promptly refund to the holders of any such Stock Rights the exercise or purchase
price paid for any excess shares issued under the Plan and held in escrow, together with interest (at the applicable Short Term Federal Rate) for the period the shares were held in escrow, and such shares shall thereupon be automatically cancelled
and cease to be outstanding. 
 23. Non-U.S. Employees. Notwithstanding anything in the Plan to the contrary, with respect to
any employee who is resident outside of the United States, the Committee may, in its sole discretion, amend the terms of the Plan in order to conform such terms with the requirements of local law or to meet the objectives of the Plan; provided,
however, that this Section 23 shall not authorize the Committee to amend the provisions of Section 4 hereof. The Committee may, where appropriate, establish one or more sub-plans for this purpose. 
  

 12 

 24. Application of Funds. The proceeds received by the Company from the sale of
shares pursuant to Options granted and Purchases authorized under the Plan shall be used for general corporate purposes. 
 25.
Governmental Regulation. The Company’s obligation to sell and deliver shares of the Common Stock under this Plan is subject to the approval of any governmental authority required in connection with the authorization, issuance or
sale of such shares. 
 26. Notice to Company of Disqualifying Disposition. Each employee who receives an ISO must agree
to notify the Company in writing immediately after the employee makes a Disqualifying Disposition of any Common Stock acquired pursuant to the exercise of an ISO. A Disqualifying Disposition is any disposition (including any sale) of such Common
Stock before the later of (a) two years after the date the employee was granted the ISO or (b) one year after the date the employee acquired Common Stock by exercising the ISO. If the employee has died before such stock is sold, these
holding period requirements do not apply and no Disqualifying Disposition can occur thereafter. 
 27. Governing Law.
The validity and construction of the Plan and the instruments evidencing Stock Rights shall be governed by the laws of the State of Delaware, or the laws of any other jurisdiction in which the Company or its successors in interest may be organized.

 28. No Employment/Service Rights. Nothing in the Plan confers upon the grantee of a Stock Right any right to continue
in service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company or any Related Corporation or of the grantee, which rights are hereby expressly reserved by each, to terminate such
person’s service at any time for any reason, with or without cause. 
  

 13 

 Register of Amendments to the Plan 
  

					
	 Paragraph No. and Change
	  	 Date of
Board Approval
	  	 Date of
 Stockholder Approval

	 Plan Adopted
	  	August 17, 1999	  	September 20, 1999
			
	¶4 Increase number of shares allocated for annual increase to Plan reserve from 3,000,000 to 9,000,000 pursuant to a three-for-one stock split effective February 11, 2000.	  	January 26, 2000	  	N/A
			
	¶4 Increase maximum number of shares grantable to any individual employee in a calendar year from 500,000 to 1,500,000 pursuant to a three-for-one stock split effective February 11,
2000.	  	January 26, 2000	  	N/A
			
	¶23 Enable Committee to amend or vary the terms of the Plan in order to implement the Plan in Non-U.S. jurisdictions.	  	February 16, 2000	  	N/A
			
	¶4 Increase number of shares reserved for issuance under the Plan by 25,000,000.	  	October 12, 2000	  	December 14, 2000
			
	¶4 Increase number of shares allocated for annual increase to Plan reserve from 9,000,000 to 18,000,000.	  	October 12, 2000	  	December 14, 2000
			
	¶19 Modification of vesting terms for changes in employee work schedules	  	November 13, 2000	  	N/A
			
	¶9 Modification to definition of Fair Market Value	  	September 12, 2007	  	N/A

  

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