Document:

Third Amendment to Credit Agreement

 EXHIBIT 10.32(d) 
 THIRD AMENDMENT TO CREDIT AGREEMENT 
 This Third Amendment to Credit Agreement (this
“Amendment”) dated as of February 18, 2009 is by and among Advanced Medical Optics, Inc., a Delaware corporation (the “Borrower”), the Guarantors, certain of the Revolving Credit Lenders and Bank of America,
N.A., as Administrative Agent on behalf of itself and the Lenders. All capitalized terms used herein but not otherwise defined herein shall have the meanings provided to such terms in the Credit Agreement (as defined below). 
 W I T N E S S E T H 
 WHEREAS, the Borrower,
the Guarantors, the Lenders and the Administrative Agent have entered into that certain Credit Agreement dated as of April 2, 2007 (as amended or modified from time to time, the “Credit Agreement”); 
 WHEREAS, the Borrower has requested that the Revolving Credit Lenders amend the Credit Agreement as set forth herein; and 
 WHEREAS, the Revolving Credit Lenders have agreed to amend the Credit Agreement on the terms and conditions set forth herein. 
 NOW, THEREFORE, IN CONSIDERATION of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows: 
 1. Amendment. Section 8.11(a) of the Credit Agreement is hereby amended to change the
maximum permitted Consolidated Total Leverage Ratio as of the last day of the four fiscal quarter period ending March 27, 2009 from 5.00:1.00 to 5.75:1.00. 
 2. Conditions Precedent. This Amendment shall be effective upon satisfaction of the following conditions precedent: 
 (a) receipt by the Administrative Agent of this Amendment executed by the Borrower, the Guarantors, the Revolving Credit Lenders holding more than 50% of the Revolving Credit Commitments (other than Defaulting
Lenders) and the Administrative Agent; 
 (b) receipt by the Administrative Agent, for the account of each Revolving Credit
Lender delivering an executed counterpart of this Amendment to the Administrative Agent on or before 5:00 p.m. New York City time on February 17, 2009, of an amendment fee equal to 0.25% on such Revolving Credit Lender’s Revolving Credit
Commitment; and 
 (c) receipt by the Administrative Agent of any other fees and expenses required to be paid by the Borrower
to the Administrative Agent and Banc of America Securities LLC on or before the date hereof. 
 3. Miscellaneous. 
 (a) The Credit Agreement (as amended by this Amendment), and the obligations of the Loan Parties thereunder and under the other Loan
Documents, are hereby ratified and confirmed and shall remain in full force and effect according to their terms. 

 (b) Each Guarantor (i) acknowledges and consents to all of the terms and conditions
of this Amendment, (ii) affirms all of its obligations under the Loan Documents, (iii) agrees that this Amendment and all documents executed in connection herewith do not operate to reduce or discharge its obligations under the Credit
Agreement or the other Loan Documents and (iv) hereby confirms and agrees that its Guarantee shall continue and remain in full force and effect after giving effect to this Amendment and that, notwithstanding any contrary terms in such
Guarantee, such Guarantee now applies to the Credit Agreement as amended by this Amendment. 
 (c) The Borrower and the
Guarantors hereby represent and warrant as follows: 
 (i) Each Loan Party has taken all necessary action to authorize the
execution, delivery and performance of this Amendment. 
 (ii) This Amendment has been duly executed and delivered by the Loan
Parties and constitutes each of the Loan Parties’ legal, valid and binding obligations, enforceable in accordance with its terms, except as such enforceability may be subject to (A) bankruptcy, insolvency, reorganization, fraudulent
conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally and (B) general principles of equity (regardless of whether such enforceability is considered in a proceeding at law or in equity). 
 (iii) No consent, approval, authorization or order of, or filing, registration or qualification with, any court or governmental authority
or third party is required in connection with the execution, delivery or performance by any Loan Party of this Amendment, other than those of the Revolving Credit Lenders holding more than 50% of the Revolving Credit Commitments (other than
Defaulting Lenders) and the Administrative Agent and those that have already been obtained and are in full force and effect as of the date hereof. 
 (d) The Loan Parties represent and warrant to the Lenders that (i) the representations and warranties of the Loan Parties set forth in Article VI of the Credit Agreement and in each other Loan Document are true
and correct in all material respects as of the date hereof with the same effect as if made on and as of the date hereof, except to the extent such representations and warranties expressly relate solely to an earlier date and (ii) no event has
occurred and is continuing which constitutes a Default or an Event of Default. 
 (e) The Borrower agrees to pay all
reasonable and documented expenses of the Administrative Agent in connection with the preparation, execution and delivery of this Amendment, including without limitation the reasonable fees and expenses of Moore & Van Allen, PLLC.

 (f) This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be an
original, but all of which shall constitute one and the same instrument. Delivery of an executed counterpart of this Amendment by telecopy, facsimile or electronic delivery (in pdf format) shall be effective as an original and shall constitute a
representation that an executed original shall be delivered. 
 (g) THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date
first above written. 
  

							
	BORROWER:	 		 	 ADVANCED MEDICAL OPTICS, INC.,
 a Delaware
corporation

				
		 		 	By:	 	 /s/ MICHAEL J. LAMBERT

		 		 	Name:	 	Michael J. Lambert
		 		 	Title:	 	Executive Vice President and CFO
			
	GUARANTORS:	 		 	 AMO HOLDINGS, INC.,
 a Delaware
corporation

				
		 		 	By:	 	 /s/ MICHAEL J. LAMBERT

		 		 	Name:	 	Michael J. Lambert
		 		 	Title:	 	Vice President and CFO
			
		 		 	 AMO MANUFACTURING USA, LLC (formerly
 known as VISX, Incorporated),
 a Delaware limited liability company

				
		 		 	By:	 	 /s/ MICHAEL J. LAMBERT

		 		 	Name:	 	Michael J. Lambert
		 		 	Title:	 	Vice President and CFO
			
		 		 	 AMO USA, LLC (formerly known as AMO USA, Inc.),
 a Delaware limited liability company

				
		 		 	By:	 	 /s/ MICHAEL J. LAMBERT

		 		 	Name:	 	Michael J. Lambert
		 		 	Title:	 	Vice President and CFO
			
		 		 	 QUEST VISION TECHNOLOGY, INC.,
 a
California corporation

				
		 		 	By:	 	 /s/ MICHAEL J. LAMBERT

		 		 	Name:	 	Michael J. Lambert
		 		 	Title:	 	Vice President and CFO
			
		 		 	 AMO WAVEFRONT SCIENCES, LCC (formerly
 known as WaveFront Sciences, Inc.),
 a New Mexico limited liability company

				
		 		 	By:	 	 /s/ MICHAEL J. LAMBERT

		 		 	Name:	 	Michael J. Lambert
		 		 	Title:	 	Vice President and CFO

 ADVANCED MEDICAL OPTICS, INC. 
 THIRD AMENDMENT 

			
	 AMO DEVELOPMENT, LLC (formerly
 known as
IntraLase Corp.),
 a Delaware limited liability company

		
	By:	 	 /s/ MICHAEL J. LAMBERT

	Name:	 	Michael J. Lambert
	Title:	 	Vice President and CFO
	
	 AMO SALES AND SERVICE, INC.
 a Delaware
corporation

		
	By:	 	 /s/ MICHAEL J. LAMBERT

	Name:	 	Michael J. Lambert
	Title:	 	Vice President and CFO
	
	 AMO US HOLDINGS, INC.,
 a Delaware
corporation

		
	By:	 	 /s/ MICHAEL J. LAMBERT

	Name:	 	Michael J. Lambert
	Title:	 	Vice President and CFO
	
	 AMO USA SALES HOLDINGS, INC.,
 a Delaware
corporation

		
	By:	 	 /s/ MICHAEL J. LAMBERT

	Name:	 	Michael J. Lambert
	Title:	 	Vice President and CFO
	
	 INTEGRATED SURGICAL SOLUTIONS, LLC,
 a
Delaware limited liability company

		
	By:	 	 /s/ MICHAEL J. LAMBERT

	Name:	 	Michael J. Lambert
	Title:	 	Vice President and CFO

			
	 BANK OF AMERICA, N.A.,
 as Administrative
Agent

		
	By:	 	 /s/ ALYSA TRAKAS

	Name:	 	Alysa Trakas
	Title:	 	Vice President
	
	 BANK OF AMERICA, N.A.,
 as Revolving Credit
Lender

		
	By:	 	 /s/ ALYSA TRAKAS

	Name:	 	Alysa Trakas
	Title:	 	Vice President
	
	 ALLIED IRISH BANKS PLC,
 as a Revolving
Credit Lender

		
	By:	 	 /s/ JOSEPH AUGUSTINI

	Name:	 	Joseph Augustini
	Title:	 	SVP Corporate Banking North America
		
	By:	 	 /s/ SHANE O’DRISCOLL

	Name:	 	Shane O’Driscoll
	Title:	 	AVP Corporate Banking North America
	
	 THE GOVERNOR & COMPANY OF THE BANK OF IRELAND,
 as a Revolving Credit Lender

		
	By:	 	 /s/ ANNE DONOVAN

	Name:	 	Anne Donovan
	Title:	 	Manager
		
	By:	 	 /s/ P. RUSHE

	Name:	 	P. Rushe
	Title:	 	Director
	
	 CITIBANK, N.A.,
 as a Revolving Credit Lender

		
	By:	 	 /s/ ALLLEN FISHER

	Name:	 	Allen Fisher
	Title:	 	Vice President

			
	 COMMERZBANK AKTIENGESELLSCHAFT, NEW YORK AND GRAND CAYMAN BRANCHES,
 as a Revolving Credit Lender

		
	By:	 	 /s/ ANDREW CAMPBELL

	Name:	 	Andrew Campbell
	Title:	 	SVP
		
	By:	 	 /s/ ANTHONY GIRALDI

	Name:	 	Anthony Giraldi
	Title:	 	Vice President
	
	 EATON VANCE INSTITUTIONAL SENIOR LOAN FUND,
 as a Revolving Credit Lender

		
	By:	 	EATON VANCE MANAGEMENT, ADVISOR
		
	By:	 	 /s/ MICHAEL B. BOTTHOF

	Name:	 	Michael B. Botthof
	Title:	 	Vice President
	
	 FORTIS CAPITAL CORP.,
 as a Revolving Credit
Lender

		
	By:	 	 /s/ HANK DOTAILLEUR

	Name:	 	Hank Dotailleur
	Title:	 	Head, Acquisition & Leveraged Finance
		
	By:	 	 /s/ YEAN CHUN CHAN

	Name:	 	Yean Chun Chan
	Title:	 	AVP
	
	 GENERAL ELECTRIC CAPITAL CORPORATION
 as a
Revolving Credit Lender

		
	By:	 	 /s/ PETER B. ZONE

	Name:	 	Peter B. Zone
	Title:	 	Duly Authorized Signatory
	
	 HSBC BANK USA, NATIONAL ASSOCIATION,
 as a
Revolving Credit Lender

		
	By:	 	 /s/ JAMES C. COLMAN

	Name:	 	James C. Colman
	Title:	 	Vice President

			
	 JPMORGAN CHASE BANK, N.A.,
 as a Revolving
Credit Lender

		
	By:	 	 /s/ ANNA C. RUIZ

	Name:	 	Anna C. Ruiz
	Title:	 	Vice President
	
	 LOAN FUNDING V, LLC, for itself or as agent for
 Corporate Loan Funding V LLL,
 as a Revolving Credit Lender

		
	By:	 	PRUDENTIAL INVESTMENT MANAGEMENT, INC., as Portfolio Manager
		
	By:	 	 /s/ STEPHEN J. COLLINS

	Name:	 	Stephen J. Collins
	Title:	 	Vice President
	
	 NATIONAL CITY BANK
 as a Revolving Credit
Lender

		
	By:	 	 /s/ PATRICK WASSER

	Name:	 	Patrick Wasser
	Title:	 	Vice President
	
	 PNC BANK, NATIONAL ASSOCIATION,
 as a
Revolving Credit Lender

		
	By:	 	 /s/ PHILIP K. LIEBSCHER

	Name:	 	Philip K. Liebscher
	Title:	 	Senior Vice President
	
	 UBS LOAN FINANCE, LLC,
 as a Revolving Credit
Lender

		
	By:	 	 /s/ MARY E. EVANS

	Name:	 	Mary E. Evans
	Title:	 	Associate Director
		
	By:	 	 /s/ MICHAEL CERNIGLIA

	Name:	 	Michael Cerniglia
	Title:	 	Director

			
	 UNION BANK OF CALIFORNIA, N.A.,
 as a
Revolving Credit Lender

		
	By:	 	 /s/ STEPHEN W. DUNNE

	Name:	 	Stephen W. Dunne
	Title:	 	Vice President
	
	 U.S. BANK N.A.,
 as a Revolving Credit Lender

		
	By:	 	 /s/ JANET E. JORDAN

	Name:	 	Janet E. Jordan
	Title:	 	Senior Vice President
	
	WELLS FARGO FOOTHILL, LLC,
		
	By:	 	 /s/ KRISTA WADE

	Name:	 	Krista Wade
	Title:	 	Assistant Vice PresidentPolycom, Inc. 2004 Equity Incentive Plan (February 4, 2009 Restatement)

 EXHIBIT 10.16 
  
  
  
  

 POLYCOM, INC. 
  
 2004 EQUITY INCENTIVE PLAN 
  
 (February 4, 2009 Restatement) 

 TABLE OF CONTENTS 
  

					
	  	    	 	  	Page
	 SECTION 1 BACKGROUND AND PURPOSE
	  	1
	 1.1
	    	Background and Effective Date	  	1
	 1.2
	    	Purpose of the Plan	  	1
		
	 SECTION 2 DEFINITIONS
	  	1
	 2.1
	    	“1934 Act”	  	1
	 2.2
	    	“Award”	  	1
	 2.3
	    	“Award Agreement”	  	1
	 2.4
	    	“Board” or “Board of Directors”	  	1
	 2.5
	    	“Code”	  	1
	 2.6
	    	“Committee”	  	2
	 2.7
	    	“Company”	  	2
	 2.8
	    	“Consultant”	  	2
	 2.9
	    	“Director”	  	2
	 2.10
	    	“Disability”	  	2
	 2.11
	    	“Earnings Per Share”	  	2
	 2.12
	    	“Employee”	  	2
	 2.13
	    	“Exchange Program”	  	2
	 2.14
	    	“Exercise Price”	  	2
	 2.15
	    	“Fair Market Value”	  	2
	 2.16
	    	“Fiscal Year”	  	3
	 2.17
	    	“Grant Date”	  	3
	 2.18
	    	“Incentive Stock Option”	  	3
	 2.19
	    	“Nonemployee Director”	  	3
	 2.20
	    	“Nonqualified Stock Option”	  	3
	 2.21
	    	“Option”	  	3
	 2.22
	    	“Participant”	  	3
	 2.23
	    	“Performance Goals”	  	3
	 2.24
	    	“Performance Period”	  	3
	 2.25
	    	“Performance Share”	  	3
	 2.26
	    	“Performance Unit”	  	3
	 2.27
	    	“Period of Restriction”	  	3
	 2.28
	    	“Plan”	  	4
	 2.29
	    	“Profit After Tax”	  	4
	 2.30
	    	“Restricted Stock”	  	4
	 2.31
	    	“Restricted Stock Unit or RSU”	  	4
	 2.32
	    	“Retirement”	  	4
	 2.33
	    	“Return on Equity”	  	4
	 2.34
	    	“Revenue”	  	4
	 2.35
	    	“Rule 16b-3”	  	4
	 2.36
	    	“Section 16 Person”	  	4
	 2.37
	    	“Shares”	  	4

  

 i 

 TABLE OF CONTENTS 
 (continued) 
  

					
	  	    	 	  	Page
	 2.38
	    	“Stock Appreciation Right” or “SAR”	  	4
	 2.39
	    	“Subsidiary”	  	4
	 2.40
	    	“Termination of Service”	  	5
	 2.41
	    	“Total Shareholder Return”	  	5
		
	 SECTION 3 ADMINISTRATION
	  	5
	 3.1
	    	The Committee	  	5
	 3.2
	    	Authority of the Committee	  	5
	 3.3
	    	Delegation by the Committee	  	5
	 3.4
	    	Decisions Binding	  	6
		
	 SECTION 4 SHARES SUBJECT TO THE PLAN
	  	6
	 4.1
	    	Number of Shares	  	6
	 4.2
	    	Lapsed Awards	  	6
	 4.3
	    	Adjustments in Awards and Authorized Shares	  	6
		
	 SECTION 5 STOCK OPTIONS
	  	6
	 5.1
	    	Grant of Options	  	6
	 5.2
	    	Award Agreement	  	7
	 5.3
	    	Exercise Price	  	7
	 5.4
	    	Expiration of Options	  	7
	 5.5
	    	Exercisability of Options	  	8
	 5.6
	    	Payment	  	8
	 5.7
	    	Restrictions on Share Transferability	  	8
	 5.8
	    	Certain Additional Provisions for Incentive Stock Options	  	9
		
	 SECTION 6 STOCK APPRECIATION RIGHTS
	  	9
	 6.1
	    	Grant of SARs	  	9
	 6.2
	    	SAR Agreement	  	10
	 6.3
	    	Expiration of SARs	  	10
	 6.4
	    	Payment of SAR Amount	  	10
		
	 SECTION 7 RESTRICTED STOCK
	  	10
	 7.1
	    	Grant of Restricted Stock	  	10
	 7.2
	    	Restricted Stock Agreement	  	10
	 7.3
	    	Transferability	  	10
	 7.4
	    	Other Restrictions	  	11
	 7.5
	    	Removal of Restrictions	  	11
	 7.6
	    	Voting Rights	  	11
	 7.7
	    	Dividends and Other Distributions	  	11
	 7.8
	    	Return of Restricted Stock to Company	  	12
		
	 SECTION 8 PERFORMANCE UNITS
	  	12
	 8.1
	    	Grant of Performance Units	  	12

  

 ii 

 TABLE OF CONTENTS 
 (continued) 
  

					
	  	    	 	  	Page
	 8.2
	    	Value of Performance Units	  	12
	 8.3
	    	Performance Objectives and Other Terms	  	12
	 8.4
	    	Earning of Performance Units	  	12
	 8.5
	    	Form and Timing of Payment of Performance Units	  	13
	 8.6
	    	Cancellation of Performance Units	  	13
		
	 SECTION 9 PERFORMANCE SHARES
	  	13
	 9.1
	    	Grant of Performance Shares	  	13
	 9.2
	    	Value of Performance Shares	  	13
	 9.3
	    	Performance Share Agreement	  	13
	 9.4
	    	Performance Objectives and Other Terms	  	13
	 9.5
	    	Earning of Performance Shares	  	14
	 9.6
	    	Form and Timing of Payment of Performance Shares	  	14
	 9.7
	    	Cancellation of Performance Shares	  	14
		
	 SECTION 10 RESTRICTED STOCK UNITS
	  	14
	 10.1
	    	Grant of RSUs	  	14
	 10.2
	    	Value of RSUs	  	14
	 10.3
	    	RSU Agreement	  	15
	 10.4
	    	Earning of RSUs	  	15
	 10.5
	    	Form and Timing of Payment of RSUs	  	15
	 10.6
	    	Cancellation of RSUs	  	15
		
	 SECTION 11 NONEMPLOYEE DIRECTOR AWARDS
	  	15
	 11.1
	    	General	  	15
	 11.2
	    	Awards	  	15
	 11.3
	    	Terms of Restricted Stock Awards	  	16
	 11.4
	    	Elections by Nonemployee Directors	  	16
		
	 SECTION 12 MISCELLANEOUS
	  	17
	 12.1
	    	Deferrals	  	17
	 12.2
	    	No Effect on Employment or Service	  	17
	 12.3
	    	Participation	  	17
	 12.4
	    	Indemnification	  	17
	 12.5
	    	Successors	  	17
	 12.6
	    	Beneficiary Designations	  	17
	 12.7
	    	Limited Transferability of Awards	  	18
	 12.8
	    	No Rights as Stockholder	  	18
		
	 SECTION 13 AMENDMENT, TERMINATION, AND DURATION
	  	18
	 13.1
	    	Amendment, Suspension, or Termination	  	18
	 13.2
	    	Duration of the Plan	  	18

  

 iii 

 TABLE OF CONTENTS 
 (continued) 
  

					
	  	    	 	  	Page
		
	 SECTION 14 TAX WITHHOLDING
	  	18
	 14.1
	    	Withholding Requirements	  	18
	 14.2
	    	Withholding Arrangements	  	18
		
	 SECTION 15 LEGAL CONSTRUCTION
	  	19
	 15.1
	    	Gender and Number	  	19
	 15.2
	    	Severability	  	19
	 15.3
	    	Requirements of Law	  	19
	 15.4
	    	Securities Law Compliance	  	19
	 15.5
	    	Governing Law	  	19
	 15.6
	    	Captions	  	19
			
	 EXECUTION
	    		  	19

  

 iv 

 POLYCOM, INC. 
 2004 EQUITY INCENTIVE PLAN 
 (February 4, 2009 Restatement) 
  
 SECTION 1 
 BACKGROUND AND PURPOSE 
  
 1.1 Background and Effective Date. The Plan permits the grant of Nonqualified Stock Options, Incentive Stock Options, SARs, Restricted Stock, Performance Units, and Performance Shares. The Plan was
effective as of June 2, 2004 upon approval by an affirmative vote of the holders of a majority of the Shares that are present in person or by proxy and entitled to vote at the 2004 Annual Meeting of Stockholders of the Company. This amended and
restated Plan is effective as of February 4, 2009. 
  
 1.2
Purpose of the Plan. The Plan is intended to attract, motivate, and retain (a) employees of the Company and its Subsidiaries, (b) consultants who provide significant services to the Company and its Subsidiaries, and
(c) directors of the Company who are employees of neither the Company nor any Subsidiary. The Plan also is designed to encourage stock ownership by Participants, thereby aligning their interests with those of the Company’s shareholders and
to permit the payment of compensation that qualifies as performance-based compensation under Section 162(m) of the Code. 
  
 SECTION 2 
 DEFINITIONS 
  
 The following words and phrases shall have the following meanings unless a
different meaning is plainly required by the context: 
  
 2.1
“1934 Act” means the Securities Exchange Act of 1934, as amended. Reference to a specific section of the 1934 Act or regulation thereunder shall include such section or regulation, any valid regulation promulgated under such
section, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation. 
  
 2.2 “Award” means, individually or collectively, a grant under the Plan of Incentive Stock Options, Nonqualified Stock Options,
SARs, Restricted Stock, Restricted Stock Units, Performance Units, or Performance Shares. 
  
 2.3 “Award Agreement” means the written agreement setting forth the terms and conditions applicable to each Award granted under the Plan. 
  
 2.4 “Board” or “Board of
Directors” means the Board of Directors of the Company. 
  
 2.5 “Code” means the Internal Revenue Code of 1986, as amended. Reference to a specific section of the Code or regulation thereunder shall include such section or regulation, any 

 
valid regulation promulgated under such section, and any comparable provision of any future legislation or regulation amending, supplementing or superseding
such section or regulation. 
  
 2.6
“Committee” means the committee appointed by the Board (pursuant to Section 3.1) to administer the Plan. 
  
 2.7 “Company” means Polycom, Inc., a Delaware corporation, or any successor thereto. 
  
 2.8 “Consultant” means any consultant, independent
contractor, or other person who provides significant services to the Company or its Subsidiaries, but who is neither an Employee nor a Director. 
  
 2.9 “Director” means any individual who is a member of the Board of Directors of the Company. 
  
 2.10 “Disability” means a permanent disability in
accordance with a policy or policies established by the Committee (in its discretion) from time to time. 
  
 2.11 “Earnings Per Share” means as to any Performance Period, the Company’s Profit After Tax, divided by a weighted average
number of common shares outstanding and dilutive common equivalent shares deemed outstanding, determined in accordance with generally accepted accounting principles. 
  
 2.12 “Employee” means any employee of the Company or of a Subsidiary, whether such employee is so
employed at the time the Plan is adopted or becomes so employed subsequent to the adoption of the Plan. 
  
 2.13 “Exchange Program” means a program established by the Committee under which outstanding Awards are amended to provide for a
lower Exercise Price or surrendered or cancelled in exchange for (a) Awards with a lower Exercise Price, (b) a different type of Award, (c) cash, or (d) a combination of (a), (b) and/or (c). Notwithstanding the preceding,
the term Exchange Program does not include any (i) program under which an outstanding Award is surrendered or cancelled in exchange for a different type of Award and/or cash having a total value equal to or less than the value of the
surrendered or cancelled Award, (ii) action described in Section 4.3, nor (iii) transfer or other disposition permitted under Section 12.7. 
  

2.14 “Exercise Price” means the price at which a Share may be purchased by a Participant pursuant to the exercise of an Option.

  
 2.15 “Fair Market Value” means the
closing per share selling price for Shares on Nasdaq on the relevant date, or if there were no sales on such date, average of the closing sales prices on the immediately following and preceding trading dates, in either case as reported by The Wall
Street Journal or such other source selected in the discretion of the Committee (or its delegate). Notwithstanding the preceding, for federal, state, and local income tax reporting purposes, fair 

  

 2 

 
market value shall be determined by the Committee (or its delegate) in accordance with uniform and nondiscriminatory standards adopted by it from time to
time. 
  
 2.16 “Fiscal Year” means the
fiscal year of the Company. 
  
 2.17 “Grant
Date” means, with respect to an Award, the date that the Award was granted. The Grant Date of an Award shall not be earlier than the date the Award is approved by the Committee. 
  
 2.18 “Incentive Stock Option” means an Option to
purchase Shares that is designated as an Incentive Stock Option and is intended to meet the requirements of Section 422 of the Code. 
  
 2.19 “Nonemployee Director” means a Director who is an employee of neither the Company nor of any Subsidiary. 
  
 2.20 “Nonqualified Stock Option” means an option to
purchase Shares that is not intended to be an Incentive Stock Option. 
  
 2.21 “Option” means an Incentive Stock Option or a Nonqualified Stock Option. 
  
 2.22 “Participant” means an Employee, Consultant, or Nonemployee Director who has an outstanding Award. 
  
 2.23 “Performance Goals” means the goal(s) (or combined
goal(s)) determined by the Committee (in its discretion) to be applicable to a Participant with respect to an Award. As determined by the Committee, the Performance Goals applicable to an Award may provide for a targeted level or levels of
achievement using one or more of the following measures: (a) Earnings Per Share, (b) Profit After Tax, (c) Return on Equity, (d) Revenue, and (e) Total Shareholder Return. The Performance Goals may differ from Participant to
Participant and from Award to Award. Any criteria used may be measured, as applicable, (i) in absolute terms, (ii) in relative terms (including, but not limited to, passage of time and/or against another company or companies),
(iii) on a per-share basis, (iv) against the performance of the Company as a whole or a business unit of the Company and/or (v) on a pre-tax or after-tax basis. Prior to the Determination Date, the Committee shall determine whether
any element(s) or item(s) shall be included in or excluded from the calculation of any Performance Goal with respect to any Participants. 
  
 2.24 “Performance Period” means any Fiscal Year or such longer period as determined by the Committee in its sole discretion.

  
 2.25 “Performance Share” means an Award
granted to a Participant pursuant to Section 9. 
  
 2.26
“Performance Unit” means an Award granted to a Participant pursuant to Section 8. 
  
 2.27 “Period of Restriction” means the period during which the transfer of Shares of Restricted Stock are subject to restrictions
and therefore, the Shares are subject to a substantial risk 

  

 3 

 
of forfeiture. As provided in Section 7, such restrictions may be based on the passage of time, the achievement of target levels of performance, or the
occurrence of other events as determined by the Committee, in its discretion. 
  
 2.28 “Plan” means the Polycom, Inc. 2004 Equity Incentive Plan, as set forth in this instrument and as hereafter amended from time to time. 
  
 2.29 “Profit After Tax” means as to any Performance
Period, the Company’s income after taxes, determined in accordance with generally accepted accounting principles. 
  
 2.30 “Restricted Stock” means an Award granted to a Participant pursuant to Section 7. 
  
 2.31 “Restricted Stock Unit or RSU” means an
Award granted to a Participant pursuant to Section 10. 
  
 2.32 “Retirement” means, in the case of an Employee or a Nonemployee Director a Termination of Service occurring in accordance with a policy or policies established by the Committee (in its discretion) from time to
time. With respect to a Consultant, no Termination of Service shall be deemed to be on account of “Retirement.” 
  
 2.33 “Return on Equity” means as to any Performance Period, the percentage equal to the Company’s Profit After Tax divided by
average stockholder’s equity, determined in accordance with generally accepted accounting principles. 
  
 2.34 “Revenue” means as to any Performance Period, the Company’s net revenues generated from third parties, determined in
accordance with generally accepted accounting principles. 
  
 2.35
“Rule 16b-3” means Rule 16b-3 promulgated under the 1934 Act, and any future regulation amending, supplementing or superseding such regulation. 
  
 2.36 “Section 16 Person” means a person who, with respect to the Shares, is subject to
Section 16 of the 1934 Act. 
  
 2.37
“Shares” means the shares of common stock of the Company. 
  
 2.38 “Stock Appreciation Right” or “SAR” means an Award, granted alone or in connection with a related Option, that pursuant to Section 6 is designated as an SAR.

  
 2.39 “Subsidiary” means any corporation
in an unbroken chain of corporations beginning with the Company as the corporation at the top of the chain, but only if each of the corporations below the Company (other than the last corporation in the unbroken chain) then owns stock possessing
fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 
  

 4 

 2.40 “Termination of Service” means (a) in the case of an Employee, a
cessation of the employee-employer relationship between the Employee and the Company or a Subsidiary for any reason, including, but not by way of limitation, a termination by resignation, discharge, death, Disability, Retirement, or the
disaffiliation of a Subsidiary, but excluding any such termination where there is a simultaneous reemployment by the Company or a Subsidiary; (b) in the case of a Consultant, a cessation of the service relationship between the Consultant and
the Company or a Subsidiary for any reason, including, but not by way of limitation, a termination by resignation, discharge, death, Disability, or the disaffiliation of a Subsidiary, but excluding any such termination where there is a simultaneous
re-engagement of the consultant by the Company or a Subsidiary; and (c) in the case of a Nonemployee Director, a cessation of the Director’s service on the Board for any reason, including, but not by way of limitation, a termination by
resignation, death, Disability, Retirement or non-reelection to the Board. 
  
 2.41 “Total Shareholder Return” means as to any Performance Period, the total return (change in share price plus reinvestment of any dividends) of a Share. 
  
 SECTION 3 
 ADMINISTRATION 
  
 3.1 The Committee. The Plan shall be administered by the Committee. The Committee shall consist of not less than two (2) Directors who shall be appointed from time to time by, and shall serve at the pleasure of, the Board
of Directors. The Committee shall be comprised solely of Directors who are (a) “outside directors” under Section 162(m), and (b) “non-employee directors” under Rule 16b-3. 
  
 3.2 Authority of the Committee. It shall be the duty of the
Committee to administer the Plan in accordance with the Plan’s provisions. The Committee shall have all powers and discretion necessary or appropriate to administer the Plan and to control its operation, including, but not limited to, the power
to (a) determine which Employees, Consultants and directors shall be granted Awards, (b) prescribe the terms and conditions of the Awards, (c) interpret the Plan and the Awards, (d) adopt such procedures and subplans as are
necessary or appropriate to permit participation in the Plan by Employees, Consultants and Directors who are foreign nationals or employed outside of the United States, (e) adopt rules for the administration, interpretation and application of
the Plan as are consistent therewith, and (f) interpret, amend or revoke any such rules. Notwithstanding the preceding, the Committee shall not implement an Exchange Program without the approval of the holders of a majority of the Shares that
are present in person or by proxy and entitled to vote at any Annual or Special Meeting of Stockholders of the Company. 
  
 3.3 Delegation by the Committee. The Committee, in its sole discretion and on such terms and conditions as it may provide, may delegate all or
any part of its authority and powers under the Plan to one or more Directors or officers of the Company. Notwithstanding the foregoing, with respect to Awards that are intended to qualify as performance-based compensation under Section 162(m)
of the Code, the Committee may not delegate its authority and powers with respect to such Awards if such delegation would cause the Awards to fail to so qualify. 
  

 5 

 3.4 Decisions Binding. All determinations and decisions made by the Committee, the Board, and
any delegate of the Committee pursuant to the provisions of the Plan shall be final, conclusive, and binding on all persons, and shall be given the maximum deference permitted by law. 
  
 SECTION 4 
 SHARES
SUBJECT TO THE PLAN 
  
 4.1 Number of Shares. Subject
to adjustment as provided in Section 4.3, the total number of Shares available issuance under the Plan shall equal the sum of (a) 12,500,000, (b) the number of Shares (not to exceed 2,700,000) that remain available for grant under the
Company’s 1996 Stock Incentive Plan as of June 2, 2004, and (c) any Shares (not to exceed 11,991,366) that otherwise would have been returned to the 1996 Stock Incentive Plan after June 1, 2004 on account of the expiration,
cancellation or forfeiture of awards granted under the 1996 Stock Incentive Plan. No more than fifty percent (50%) of the Shares available under the Plan may be issued pursuant to Awards that are not Options or SARs. Shares granted under the
Plan may be either authorized but unissued Shares or treasury Shares. 
  
 4.2 Lapsed Awards. If an Award is settled in cash, or is cancelled, terminates, expires, or lapses for any reason, any Shares subject to such Award again shall be available to be the subject of an Award, except as determined by
the Committee. 
  
 4.3 Adjustments in Awards and Authorized
Shares. In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up,
spin-off, combination, repurchase, or exchange of Shares or other securities of the Company, or other change in the corporate structure of the Company affecting the Shares such that an adjustment is determined by the Committee (in its sole
discretion) to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the Committee shall, in such manner as it may deem equitable, adjust the number and
class of Shares which may be delivered under the Plan, the number and class of Shares which may be added annually to the Shares reserved under the Plan, the number, class, and price of Shares subject to outstanding Awards, and the numerical limits
of Sections 5.1, 6.1, 7.1, 8.1, 9.1, 10.1 and 11.2. Notwithstanding the preceding, the number of Shares subject to any Award always shall be a whole number. 
  
 SECTION 5 
 STOCK
OPTIONS 
  
 5.1 Grant of Options. Subject to the terms
and provisions of the Plan, Options may be granted to Employees, Directors and Consultants at any time and from time to time as determined by the Committee in its sole discretion. The Committee, in its sole discretion, shall determine the number of
Shares subject to each Option, provided that during any Fiscal Year, no Participant shall be granted Options (and/or SARs) covering more than a total of 750,000 Shares. Notwithstanding the foregoing, during the Fiscal Year in which a Participant
first becomes an Employee, he or she 

  

 6 

 
may be granted Options (and/or SARs) to purchase up to a total of an additional 750,000 Shares. The Committee may grant Incentive Stock Options, Nonqualified
Stock Options, or a combination thereof. 
  
 5.2 Award
Agreement. Each Option shall be evidenced by an Award Agreement that shall specify the Exercise Price, the expiration date of the Option, the number of Shares covered by the Option, any conditions to exercise the Option, and such other
terms and conditions as the Committee, in its discretion, shall determine. The Award Agreement shall also specify whether the Option is intended to be an Incentive Stock Option or a Nonqualified Stock Option. 
  
 5.3 Exercise Price. Subject to the provisions of this
Section 5.3, the Exercise Price for each Option shall be determined by the Committee in its sole discretion. 
  
 5.3.1 Nonqualified Stock Options. The Exercise Price of each Nonqualified Stock option shall be determined by the Committee in its discretion but
shall be not less than one hundred percent (100%) of the Fair Market Value of a Share on the Grant Date. 
  
 5.3.2 Incentive Stock Options. In the case of an Incentive Stock Option, the Exercise Price shall be not less than one hundred percent
(100%) of the Fair Market Value of a Share on the Grant Date; provided, however, that if on the Grant Date, the Employee (together with persons whose stock ownership is attributed to the Employee pursuant to Section 424(d) of the Code)
owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or any of its Subsidiaries, the Exercise Price shall be not less than one hundred and ten percent (110%) of the Fair Market Value of a
Share on the Grant Date. 
  
 5.3.3 Substitute Options.
Notwithstanding the provisions of Section 5.3.2, in the event that the Company or a Subsidiary consummates a transaction described in Section 424(a) of the Code (e.g., the acquisition of property or stock from an unrelated corporation),
persons who become Employees, Nonemployee Directors or Consultants on account of such transaction may be granted Options in substitution for options granted by their former employer. If such substitute Options are granted, the Committee, in its sole
discretion and consistent with Section 424(a) of the Code, may determine that such substitute Options shall have an exercise price less than one hundred percent (100%) of the Fair Market Value of the Shares on the Grant Date. 

 
 5.4 Expiration of Options.
  
 5.4.1 Expiration Dates. Each Option shall terminate no later than the
first to occur of the following events: 
  
 (a) The date for
termination of the Option set forth in the written Award Agreement; or 
  
 (b) The expiration of ten (10) years from the Grant Date. 
  

 7 

 5.4.2 Death of Participant. Notwithstanding Section 5.4.1, if a Participant dies prior to the
expiration of his or her Options, the Committee, in its discretion, may provide that his or her Options shall be exercisable for up to three (3) years after the date of death. With respect to extensions that were not included in the original
terms of the Option but were provided by the Committee after the date of grant, if at the time of any such extension, the exercise price per Share of the Option is less than the Fair Market Value of a Share, the extension shall, unless otherwise
determined by the Committee, be limited to the earlier of (1) the maximum term of the Option as set by its originals terms, or (2) ten (10) years from the Grant Date. 
  
 5.4.3 Committee Discretion. Subject to the ten and thirteen-year limits of Sections 5.4.1 and 5.4.2, the
Committee, in its sole discretion, (a) shall provide in each Award Agreement when each Option expires and becomes unexercisable, and (b) may, after an Option is granted, extend the maximum term of the Option (subject to Section 5.8.4
regarding Incentive Stock Options). With respect to the Committee’s authority in Section 5.4.3(b), if, at the time of any such extension, the exercise price per Share of the Option is less than the Fair Market Value of a Share, the
extension shall, unless otherwise determined by the Committee, be limited to the earlier of (1) the maximum term of the Option as set by its originals terms, or (2) ten (10) years from the Grant Date. Unless otherwise determined by
the Committee, any extension of the term of an Option pursuant to this Section 5.4.3 shall comply with Section 409A of the Code to the extent applicable. 
  
 5.5 Exercisability of Options. Options granted under the Plan shall be exercisable at such times and be subject
to such restrictions and conditions as the Committee shall determine in its sole discretion. After an Option is granted, the Committee, in its sole discretion, may accelerate the exercisability of the Option. 
  
 5.6 Payment. Options shall be exercised by the Participant giving
notice and following such procedures as the Company (or its designee) may specify from time to time. Exercise of an Option also requires that the Participant make arrangements satisfactory to the Company for full payment of the Exercise Price for
the Shares. All exercise notices shall be given in the form and manner specified by the Company from time to time. 
  
 The Exercise Price shall be payable to the Company in full in cash or its equivalent. The Committee, in its sole discretion, also may permit exercise
(a) by tendering previously acquired Shares having an aggregate Fair Market Value at the time of exercise equal to the total Exercise Price, or (b) by any other means which the Committee, in its sole discretion, determines to both provide
legal consideration for the Shares, and to be consistent with the purposes of the Plan. As soon as practicable after receipt of a notification of exercise satisfactory to the Company and full payment for the Shares purchased, the Company shall
deliver to the Participant (or the Participant’s designated broker), Share certificates (which may be in book entry form) representing such Shares. 
  
 5.7 Restrictions on Share Transferability. The Committee may impose such restrictions on any Shares acquired pursuant to the exercise of an
Option as it may deem advisable, including, but not limited to, restrictions related to applicable federal securities laws, the requirements of any national securities exchange or system upon which Shares are then listed or traded, or any blue sky
or state securities laws. 
  

 8 

 5.8 Certain Additional Provisions for Incentive Stock Options.
  
 5.8.1 Exercisability. The aggregate Fair Market Value (determined on
the Grant Date(s)) of the Shares with respect to which Incentive Stock Options are exercisable for the first time by any Employee during any calendar year (under all plans of the Company and its Subsidiaries) shall not exceed $100,000. 

 
 5.8.2 Termination of Service. No Incentive Stock Option may be
exercised more than three (3) months after the Participant’s Termination of Service for any reason other than Disability or death, unless (a) the Participant dies during such three-month period, and/or (b) the Award Agreement or
the Committee permits later exercise (in which case the Option instead may be deemed to be a Nonqualified Stock Option). No Incentive Stock Option may be exercised more than one (1) year after the Participant’s Termination of Service on
account of Disability, unless (a) the Participant dies during such one-year period, and/or (b) the Award Agreement or the Committee permit later exercise (in which case the option instead may be deemed to be a Nonqualified Stock Option).

  
 5.8.3 Employees Only. Incentive Stock Options may be
granted only to persons who are Employees on the Grant Date. 
  
 5.8.4 Expiration. No Incentive Stock Option may be exercised after the expiration of ten (10) years from the Grant Date; provided, however, that if the Option is granted to an Employee who, together with persons whose stock
ownership is attributed to the Employee pursuant to Section 424(d) of the Code, owns stock possessing more than 10% of the total combined voting power of all classes of the stock of the Company or any of its Subsidiaries, the Option may not be
exercised after the expiration of five (5) years from the Grant Date. 
  
 SECTION 6 
 STOCK APPRECIATION RIGHTS 
  
 6.1 Grant of SARs. Subject to the terms and conditions of the Plan, a SAR may be granted to Employees, Directors
and Consultants at any time and from time to time as shall be determined by the Committee, in its sole discretion. 
  
 6.1.1 Number of Shares. The Committee shall have complete discretion to determine the number of SARs granted to any Participant, provided that
during any Fiscal Year, no Participant shall be granted SARs (and/or Options) covering more than a total of 750,000 Shares. Notwithstanding the foregoing, during the Fiscal Year in which a Participant first becomes an Employee, he or she may be
granted SARs (and/or Options) covering up to a total of an additional 750,000 Shares. 
  
 6.1.2 Exercise Price and Other Terms. The Committee, subject to the provisions of the Plan, shall have complete discretion to determine the terms and conditions of SARs granted under the Plan. The Exercise
Price of each SAR shall be determined by the Committee in its 

  

 9 

 
discretion but shall not be less than one hundred percent (100%) of the Fair Market Value of a Share on the Grant Date. 
  
 6.2 SAR Agreement. Each SAR grant shall be evidenced by an Award
Agreement that shall specify the exercise price, the term of the SAR, the conditions of exercise, and such other terms and conditions as the Committee, in its sole discretion, shall determine. 
  
 6.3 Expiration of SARs. An SAR granted under the Plan shall
expire upon the date determined by the Committee, in its sole discretion, and set forth in the Award Agreement. Notwithstanding the foregoing, the rules of Section 5.4 also shall apply to SARs. 
  
 6.4 Payment of SAR Amount. Upon exercise of an SAR, a Participant
shall be entitled to receive payment from the Company in an amount determined by multiplying: 
  
 (a) The difference between the Fair Market Value of a Share on the date of exercise over the exercise price; times 
  
 (b) The number of Shares with respect to which the SAR is exercised. At the discretion of the Committee, the payment upon SAR exercise may be in cash, in
Shares of equivalent value, or in some combination thereof. 
  
 SECTION 7 
 RESTRICTED STOCK 
  
 7.1 Grant of Restricted Stock. Subject to the terms and provisions of the Plan, the Committee, at any time and from time to time, may grant
Shares of Restricted Stock to Employees, Directors and Consultants as the Committee, in its sole discretion, shall determine. The Committee, in its sole discretion, shall determine the number of Shares to be granted to each Participant, provided
that during any Fiscal Year, no Participant shall receive more than a total of 375,000 Shares of Restricted Stock (and/or Performance Shares or Restricted Stock Units). Notwithstanding the foregoing, during the Fiscal Year in which a Participant
first becomes an Employee, he or she may be granted up to a total of an additional 375,000 Shares of Restricted Stock (and/or Performance Shares or Restricted Stock Units). 
  
 7.2 Restricted Stock Agreement. Each Award of Restricted Stock shall be evidenced by an Award Agreement that
shall specify the Period of Restriction, the number of Shares granted, and such other terms and conditions as the Committee, in its sole discretion, shall determine. Unless the Committee determines otherwise, Shares of Restricted Stock shall be held
by the Company as escrow agent until the restrictions on such Shares have lapsed. 
  
 7.3 Transferability. Except as provided in this Section 7, Shares of Restricted Stock may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until the end of the
applicable Period of Restriction. 
  

 10 

 7.4 Other Restrictions. The Committee, in its sole discretion, may impose such other
restrictions on Shares of Restricted Stock as it may deem advisable or appropriate, in accordance with this Section 7.4. 
  
 7.4.1 General Restrictions. The Committee may set restrictions based upon continued employment or service with the Company and its affiliates, the
achievement of specific performance objectives (Company-wide, departmental, or individual), applicable federal or state securities laws, or any other basis determined by the Committee in its discretion. 
  
 7.4.2 Section 162(m) Performance Restrictions. For purposes of
qualifying grants of Restricted Stock as “performance-based compensation” under Section 162(m) of the Code, the Committee, in its discretion, may set restrictions based upon the achievement of Performance Goals. The Performance Goals
shall be set by the Committee on or before the latest date permissible to enable the Restricted Stock to qualify as “performance-based compensation” under Section 162(m) of the Code. In granting Restricted Stock which is intended to
qualify under Section 162(m) of the Code, the Committee shall follow any procedures determined by it from time to time to be necessary or appropriate to ensure qualification of the Restricted Stock under Section 162(m) of the Code (e.g.,
in determining the Performance Goals). 
  
 7.4.3 Legend on
Certificates. The Committee, in its discretion, may legend the certificates representing Restricted Stock to give appropriate notice of such restrictions. 
  

7.5 Removal of Restrictions. Except as otherwise provided in this Section 7, Shares of Restricted Stock covered by each Restricted
Stock grant made under the Plan shall be released from escrow as soon as practicable after the last day of the Period of Restriction. The Committee, in its discretion, may accelerate the time at which any restrictions shall lapse or be removed.
After the restrictions have lapsed, the Participant shall be entitled to have any legend or legends under Section 7.4.3 removed from his or her Share certificate, and the Shares shall be freely transferable by the Participant. The Committee (in
its discretion) may establish procedures regarding the release of Shares from escrow and the removal of legends, as necessary or appropriate to minimize administrative burdens on the Company 
  
 7.6 Voting Rights. During the Period of Restriction, Participants
holding Shares of Restricted Stock granted hereunder may exercise full voting rights with respect to those Shares, unless the Committee determines otherwise. 
  
 7.7 Dividends and Other Distributions. During the Period of Restriction, Participants holding Shares of Restricted Stock shall be entitled to
receive all dividends and other distributions paid with respect to such Shares unless otherwise provided in the Award Agreement. Any such dividends or distribution shall be subject to the same restrictions on transferability and forfeitability as
the Shares of Restricted Stock with respect to which they were paid, unless otherwise provided in the Award Agreement. 
  

 11 

 7.8 Return of Restricted Stock to Company. On the date set forth in the Award Agreement, the
Restricted Stock for which restrictions have not lapsed shall revert to the Company and again shall become available for grant under the Plan. 
  
 SECTION 8 
 PERFORMANCE UNITS 
  
 8.1 Grant of Performance Units. Performance Units may be granted
to Employees, Directors and Consultants at any time and from time to time, as shall be determined by the Committee, in its sole discretion. The Committee shall have complete discretion in determining the number of Performance Units granted to each
Participant provided that during any Fiscal Year, no Participant shall receive Performance Units having an initial value greater than $3,000,000. 
  
 8.2 Value of Performance Units. Each Performance Unit shall have an initial value that is established by the Committee on or before the Grant
Date. 
  
 8.3 Performance Objectives and Other
Terms. The Committee, in its discretion, shall set performance objectives or other vesting criteria which, depending on the extent to which they are met, will determine the number or value of Performance Units that will be paid out to the
Participants. Each Award of Performance Units shall be evidenced by an Award Agreement that shall specify the Performance Period, and such other terms and conditions as the Committee, in its sole discretion, shall determine. 
  
 8.3.1 General Performance Objectives or Vesting Criteria. The
Committee may set performance objectives or vesting criteria based upon the achievement of Company-wide, departmental, or individual goals, applicable federal or state securities laws, or any other basis determined by the Committee in its discretion
(for example, but not by way of limitation, continuous service as an Employee, Director or Consultant). 
  
 8.3.2 Section 162(m) Performance Objectives. For purposes of qualifying grants of Performance Units as “performance-based
compensation” under Section 162(m) of the Code, the Committee, in its discretion, may determine that the performance objectives applicable to Performance Units shall be based on the achievement of Performance Goals. The Performance Goals
shall be set by the Committee on or before the latest date permissible to enable the Performance Units to qualify as “performance-based compensation” under Section 162(m) of the Code. In granting Performance Units that are intended to
qualify under Section 162(m) of the Code, the Committee shall follow any procedures determined by it from time to time to be necessary or appropriate to ensure qualification of the Performance Units under Section 162(m) of the Code (e.g.,
in determining the Performance Goals). 
  
 8.4 Earning of
Performance Units. After the applicable Performance Period has ended, the holder of Performance Units shall be entitled to receive a payout of the number of Performance Units earned by the Participant over the Performance Period, to be
determined as a function of the extent to which the corresponding performance objectives have been achieved. After the grant of a 

  

 12 

 
Performance Unit, the Committee, in its sole discretion, may reduce or waive any performance objectives for such Performance Unit. 
  
 8.5 Form and Timing of Payment of Performance Units. Payment of
earned Performance Units shall be made as soon as practicable after the expiration of the applicable Performance Period. The Committee, in its sole discretion, may pay earned Performance Units in the form of cash, in Shares (which have an aggregate
Fair Market Value equal to the value of the earned Performance Units at the close of the applicable Performance Period) or in a combination thereof. 
  
 8.6 Cancellation of Performance Units. On the date set forth in the Award Agreement, all unearned or unvested Performance Units shall be
forfeited to the Company, and again shall be available for grant under the Plan. 
  
 SECTION 9 
 PERFORMANCE SHARES 
  

 9.1 Grant of Performance Shares. Performance Shares may be granted to Employees, Directors and Consultants at any time and from
time to time, as shall be determined by the Committee, in its sole discretion. The Committee shall have complete discretion in determining the number of Performance Shares granted to each Participant, provided that during any Fiscal Year, no
Participant shall be granted more than a total of 375,000 Performance Shares (and/or Shares of Restricted Stock or Restricted Stock Units). Notwithstanding the foregoing, during the Fiscal Year in which a Participant first becomes an Employee, he or
she may be granted up to a total of an additional 375,000 Performance Shares (and/or Shares of Restricted Stock or Restricted Stock Units). 
  
 9.2 Value of Performance Shares. Each Performance Share shall have an initial value equal to the Fair Market Value of a Share on the Grant
Date. 
  
 9.3 Performance Share Agreement. Each Award
of Performance Shares shall be evidenced by an Award Agreement that shall specify any vesting conditions, the number of Performance Shares granted, and such other terms and conditions as the Committee, in its sole discretion, shall determine.

  
 9.4 Performance Objectives and Other Terms. The
Committee, in its discretion, shall set performance objectives or other vesting criteria which, depending on the extent to which they are met, will determine the number or value of Performance Shares that will be paid out to the Participants. Each
Award of Performance Shares shall be evidenced by an Award Agreement that shall specify the Performance Period, and such other terms and conditions as the Committee, in its sole discretion, shall determine. 
  
 9.4.1 General Performance Objectives or Vesting Criteria. The
Committee may set performance objectives or vesting criteria based upon the achievement of Company-wide, departmental, or individual goals, applicable federal or state securities laws, or any other basis 

  

 13 

 
determined by the Committee in its discretion (for example, but not by way of limitation, continuous service as an Employee, Director or Consultant).

  
 9.4.2 Section 162(m) Performance Objectives. For
purposes of qualifying grants of Performance Shares as “performance-based compensation” under Section 162(m) of the Code, the Committee, in its discretion, may determine that the performance objectives applicable to Performance Shares
shall be based on the achievement of Performance Goals. The Performance Goals shall be set by the Committee on or before the latest date permissible to enable the Performance Shares to qualify as “performance-based compensation” under
Section 162(m) of the Code. In granting Performance Shares that are intended to qualify under Section 162(m) of the Code, the Committee shall follow any procedures determined by it from time to time to be necessary or appropriate to ensure
qualification of the Performance Shares under Section 162(m) of the Code (e.g., in determining the Performance Goals). 
  
 9.5 Earning of Performance Shares. After the applicable Performance Period has ended, the holder of Performance Shares shall be entitled to
receive a payout of the number of Performance Shares earned by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding performance objectives have been achieved. After the grant of a
Performance Share, the Committee, in its sole discretion, may reduce or waive any performance objectives for such Performance Share. 
  
 9.6 Form and Timing of Payment of Performance Shares. Payment of vested Performance Shares shall be made as soon as practicable after vesting
(subject to any deferral permitted under Section 12.1). The Committee, in its sole discretion, may pay Performance Shares in the form of cash, in Shares or in a combination thereof. 
  
 9.7 Cancellation of Performance Shares. On the date set forth in the Award Agreement, all unvested Performance
Shares shall be forfeited to the Company, and except as otherwise determined by the Committee, again shall be available for grant under the Plan. 
  
 SECTION 10 
 RESTRICTED STOCK UNITS 

 
 10.1 Grant of RSUs. Restricted Stock Units may be granted to
Employees, Directors and Consultants at any time and from time to time, as shall be determined by the Committee, in its sole discretion. The Committee shall have complete discretion in determining the number of Restricted Stock Units granted to each
Participant, provided that during any Fiscal Year, no Participant shall be granted more than a total of 375,000 Restricted Stock Units (and/or Shares of Restricted Stock or Performance Shares). Notwithstanding the foregoing, during the Fiscal Year
in which a Participant first becomes an Employee, he or she may be granted up to a total of an additional 375,000 Restricted Stock Units (and/or Shares of Restricted Stock or Performance Shares). 
  
 10.2 Value of RSUs. Each Restricted Stock Unit shall have an
initial value equal to the Fair Market Value of a Share on the Grant Date. 
  

 14 

 10.3 RSU Agreement. Each Award of Restricted Stock Units shall be evidenced by an Award
Agreement that shall specify any vesting conditions, the number of Restricted Stock Units granted, and such other terms and conditions as the Committee, in its sole discretion, shall determine. 
  
 10.4 Earning of RSUs. After the applicable vesting period has
ended, the holder of Restricted Stock Units shall be entitled to receive a payout of the number of Restricted Stock Units earned by the Participant over the vesting period. After the grant of a Restricted Stock Unit, the Committee, in its sole
discretion, may reduce or waive any vesting condition for such Restricted Stock Unit. 
  
 10.5 Form and Timing of Payment of RSUs. Payment of vested Restricted Stock Units shall be made as soon as practicable after vesting (subject to any deferral permitted under Section 12.1). The
Committee, in its sole discretion, may pay Restricted Stock Units in the form of cash, in Shares or in a combination thereof. 
  
 10.6 Cancellation of RSUs. On the date set forth in the Award Agreement, all unvested Restricted Stock Units shall be forfeited to the
Company, and except as otherwise determined by the Committee, again shall be available for grant under the Plan. 
  
 SECTION 11 
 NONEMPLOYEE DIRECTOR AWARDS 
  
 11.1 General. Nonemployee Directors will be entitled to receive
all types of Awards under this Plan, including discretionary Awards not covered under this Section 11. All grants of Restricted Stock Units to Nonemployee Directors pursuant to this Section 11 will be automatic and nondiscretionary, except
as otherwise provided herein, and will be made in accordance with the following provisions: 
  
 11.2 Awards.
  
 11.2.1
Initial Grants. 
  
 (a) Each Nonemployee Director who
first becomes a Nonemployee Director on or after November 7, 2007, but prior to the 2009 Annual Meeting of the Company’s Stockholders, automatically shall receive, as of the date that the individual first is appointed or elected as a
Nonemployee Director, the number of Shares of Restricted Stock determined by multiplying (A) 10,000 by (B) the percentage determined by dividing (i) the number of calendar months that remain in the one-year period commencing on the
date of the last Annual Meeting of the Company’s Stockholders immediately preceding the date the individual is first appointed or elected as a Nonemployee Director, including the month in which the individual is so appointed or elected, by
(ii) 12, rounded down to the nearest whole Share. 
  
 (b)
Each Nonemployee Director who first becomes a Nonemployee Director on or after the 2009 Annual Meeting of the Company’s Stockholders, automatically shall 

  

 15 

 
receive, as of the date that the individual first is appointed or elected as a Nonemployee Director, the number of Restricted Stock Units determined by
multiplying (A) 10,000 by (B) the percentage determined by dividing (i) the number of calendar months that remain in the one-year period commencing on the date of the last Annual Meeting of the Company’s Stockholders immediately
preceding the date the individual is first appointed or elected as a Nonemployee Director, including the month in which the individual is so appointed or elected, by (ii) 12, rounded down to the nearest whole Restricted Stock Unit. 

 
 11.2.2 Ongoing Grants. Each Nonemployee Director who is reelected as such
at an Annual Meeting of the Company’s Stockholders, automatically shall receive, as of the date of such Annual Meeting, 10,000 Restricted Stock Units. 
  
 11.3 Terms of Restricted Stock and Restricted Stock Unit Awards.
  
 11.3.1 Award Agreement. Each Award of Restricted Stock and Restricted Stock Units granted pursuant to this
Section 11 shall be evidenced by a written Award Agreement between the Participant and the Company. 
  
 11.3.2 Vesting Schedule/Period of Restriction. Each Award of Restricted Stock granted pursuant to Section 11.2.1(a) and each Award of
Restricted Stock Units granted pursuant to Sections 11.2.1(b) and 11.2.2 shall vest at such times and be subject to such restrictions and conditions as the Committee shall determine in its sole discretion. Except as otherwise determined by the
Committee in its sole discretion and set forth in the Award Agreement, once a Participant ceases to be a Director, the Restricted Stock for which restrictions have not lapsed and the Shares subject to Restricted Stock Units that have not vested
shall revert to the Company and again shall become available for grant under the Plan. 
  
 11.3.3 Other Terms. All provisions of the Plan not inconsistent with this Section 11 shall apply to Awards of Restricted Stock and Restricted Stock Units granted to Nonemployee Directors. 
  
 11.4 Elections by Nonemployee Directors. Pursuant to such
procedures as the Committee (in its discretion) may adopt from time to time, each Nonemployee Director may elect to forego receipt of all or a portion of the annual retainer, committee fees and meeting fees otherwise due to the Nonemployee Director
in exchange for Awards. The number of Shares subject to Awards received by any Nonemployee Director shall equal the amount of foregone compensation divided by the Fair Market Value of a Share on the date the compensation otherwise would have been
paid to the Nonemployee Director, rounded up to the nearest whole number of Shares. The procedures adopted by the Committee for elections under this Section 11.4 shall be designed to ensure that any such election by a Nonemployee Director will
not disqualify him or her as a “non-employee director” under Rule 16b-3. Unless otherwise determined by the Committee, the elections permitted under this Section 11.4 shall comply with Section 409A of the Code. 
  

 16 

 SECTION 12 
 MISCELLANEOUS 
  
 12.1
Deferrals. The Committee, in its sole discretion, may permit a Participant to defer receipt of the payment of cash or the delivery of Shares that would otherwise be due to such Participant under an Award. Any such deferral elections
shall be subject to such rules and procedures as shall be determined by the Committee in its sole discretion and, unless otherwise expressly determined by the Committee, shall comply with the requirements of Section 409A of the Code.

  
 12.2 No Effect on Employment or Service. Nothing
in the Plan shall interfere with or limit in any way the right of the Company to terminate any Participant’s employment or service at any time, with or without cause. For purposes of the Plan, transfer of employment of a Participant between the
Company and any one of its Subsidiaries (or between Subsidiaries) shall not be deemed a Termination of Service. Employment with the Company and its Subsidiaries is on an at-will basis only. 
  
 12.3 Participation. No Employee, Director or Consultant shall
have the right to be selected to receive an Award under this Plan, or, having been so selected, to be selected to receive a future Award. 
  
 12.4 Indemnification. Each person who is or shall have been a member of the Committee, or of the Board, shall be indemnified and held harmless
by the Company against and from (a) any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a
party or in which he or she may be involved by reason of any action taken or failure to act under the Plan or any Award Agreement, and (b) from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or
paid by him or her in satisfaction of any judgment in any such claim, action, suit, or proceeding against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she
undertakes to handle and defend it on his or her own behalf. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company’s Certificate of
Incorporation or Bylaws, by contract, as a matter of law, or otherwise, or under any power that the Company may have to indemnify them or hold them harmless. 
  
 12.5 Successors. All obligations of the Company under the Plan, with respect to Awards granted hereunder, shall be binding on any successor to
the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business or assets of the Company. 
  
 12.6 Beneficiary Designations. If permitted by the Committee, a
Participant under the Plan may name a beneficiary or beneficiaries to whom any vested but unpaid Award shall be paid in the event of the Participant’s death. Each such designation shall revoke all prior designations by the Participant and shall
be effective only if given in a form and manner acceptable to the Committee. In the absence of any such designation, any vested benefits remaining unpaid at the Participant’s 

  

 17 

 
death shall be paid to the Participant’s estate and, subject to the terms of the Plan and of the applicable Award Agreement, any unexercised vested
Award may be exercised by the administrator or executor of the Participant’s estate. 
  
 12.7 Limited Transferability of Awards. No Award granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will, by the laws of descent and
distribution, or to the limited extent provided in Section 12.6. All rights with respect to an Award granted to a Participant shall be available during his or her lifetime only to the Participant. Notwithstanding the foregoing, a Participant
may, if the Committee (in its discretion) so permits, transfer an Award to an individual or entity other than the Company. Any such transfer shall be made in accordance with such procedures as the Committee may specify from time to time. 

 
 12.8 No Rights as Stockholder. Except to the limited extent
provided in Sections 7.6, no Participant (nor any beneficiary) shall have any of the rights or privileges of a stockholder of the Company with respect to any Shares issuable pursuant to an Award (or exercise thereof), unless and until
certificates representing such Shares shall have been issued, recorded on the records of the Company or its transfer agents or registrars, and delivered to the Participant (or beneficiary). 
  
 SECTION 13 
 AMENDMENT, TERMINATION, AND DURATION 
  
 13.1 Amendment, Suspension, or Termination. The Board, in its sole discretion, may amend, suspend or terminate the Plan, or any part thereof, at any time and for any reason. The amendment, suspension, or
termination of the Plan shall not, without the consent of the Participant, alter or impair any rights or obligations under any Award theretofore granted to such Participant. No Award may be granted during any period of suspension or after
termination of the Plan. 
  
 13.2 Duration of the
Plan. The Plan shall be effective as of June 2, 2004, and subject to Section 13.1 (regarding the Board’s right to amend or terminate the Plan), shall remain in effect thereafter. However, without further stockholder approval,
no Incentive Stock Option may be granted under the Plan after June 2, 2014. 
  
 SECTION 14 
 TAX WITHHOLDING 
  

 14.1 Withholding Requirements. Prior to the delivery of any Shares or cash pursuant to an Award (or exercise thereof), the
Company shall have the power and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy federal, state, and local taxes (including the Participant’s FICA obligation) required to be
withheld with respect to such Award (or exercise thereof). 
  
 14.2 Withholding Arrangements. The Committee, in its sole discretion and pursuant to such procedures as it may specify from time to time, may permit a Participant to satisfy such tax withholding obligation, in whole or in part
by (a) electing to have the Company withhold otherwise 

  

 18 

 
deliverable Shares, or (b) delivering to the Company already-owned Shares having a Fair Market Value equal to the minimum amount required to be
withheld. 
  
 SECTION 15 
 LEGAL CONSTRUCTION 
  
 15.1 Gender and Number. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine; the
plural shall include the singular and the singular shall include the plural. 
  
 15.2 Severability. In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall
be construed and enforced as if the illegal or invalid provision had not been included. 
  
 15.3 Requirements of Law. The granting of Awards and the issuance of Shares under the Plan shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental
agencies or national securities exchanges as may be required. 
  
 15.4 Securities Law Compliance. With respect to Section 16 Persons, transactions under this Plan are intended to qualify for the exemption provided by Rule 16b-3. To the extent any provision of the Plan, Award Agreement or
action by the Committee fails to so comply, it shall be deemed null and void, to the extent permitted by law and deemed advisable or appropriate by the Committee. 
  
 15.5 Governing Law. The Plan and all Award Agreements shall be construed in accordance with and governed by the
laws of the State of California (with the exception of its conflict of laws provisions). 
  
 15.6 Captions. Captions are provided herein for convenience only, and shall not serve as a basis for interpretation or construction of the Plan. 
  
 EXECUTION 
  
 IN WITNESS WHEREOF, the Company, by its duly authorized officer, has executed this Plan on the date indicated below.

  

									
		 		 	 POLYCOM, INC.

				
	Dated: February 11, 2009	 		 	By	 	 /s/ Sayed M. Darwish

		 		 		 	 Title:
	 	 SVP, CAO, General Counsel and Secretary

  

 19 

 APPENDIX A 
  
 Terms and Conditions for French Option Grants 
  
 The following terms and conditions will apply in the case of Option grants to French residents and to those individuals
who are otherwise subject to the laws of France who satisfy the eligibility requirements of Section 2 below. 
  
 SECTION 1 
 DEFINITIONS 
  
 As used in this Appendix A, the following definitions will apply: 

 
 1.1 “Applicable Laws” means the legal requirements
relating to the administration of equity compensation plans under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and French corporate,
securities, labor and tax laws. 
  
 1.2
“Employee” means (i) any person employed by the Company or a Subsidiary in a salaried position within the meaning Applicable Laws, who does not own more than 10% of the voting power of all classes of stock of the Company, or
any Parent or Subsidiary, and who is a resident of the Republic of France or (ii) any person employed by the Company or a Subsidiary who is a resident of the Republic of France for tax purposes or who performs his or her duties in France and is
subject to French income social security contributions on his or her remuneration. 
  
 1.3 “Fair Market Value” means, as of any date, the dollar value of Common Stock determined as follows: 
  
 1.3.1 If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq National Market
of the Nasdaq Stock Market, its Fair Market Value will be the average quotation price for the last 20 days preceding the date of determination for such Common Stock (or the average closing bid for such 20 day period, if no sales were reported) as
quoted on such exchange or system and reported in The Wall Street Journal or such other source as the Committee deems reliable; 
  
 1.3.2 If the Common Stock is quoted on the Nasdaq Stock market (but not on the Nasdaq National Market thereof) or regularly quoted by a recognized
securities dealer but selling prices are not reported, its Fair Market Value will be the mean between the high bid and low asked prices for the Common Stock for the last 20 days preceding the date of determination; or 
  
 1.3.3 In the absence of an established market for the Common Stock, the Fair
Market Value thereof will be determined in good faith by the Committee. 

 1.4 “Subsidiary” means any participating subsidiary of the Company located in the
Republic of France and that falls within the definition of “subsidiary” within the meaning of Section L. 225-180 paragraph 1 of the French commercial code. 
  

 1.5 “Termination of Service” means if the Participant is an Employee, the last day of any statutory or contractual notice
period whether worked or not (provided, only the employer, and not the Participant, may decide whether the Participant works during the notice period) and irrespective of whether the termination of the employment agreement is due to resignation or
dismissal of the Employee for any reason whatsoever; if the Participant is a corporate officer as defined in Section 2 of this Appendix A, Termination of Service means the date on which he or she effectively leaves his or her position as a
corporate officer for any reason whatsoever. 
  
 SECTION 2

 ELIGIBILITY 
  
 2.1 Eligibility. Options granted pursuant to this Appendix A may be granted only to Employees, the Président du conseil
d’administration, the membres du directoire, the Directeur général, the directeurs généraux délégués, the Gérant of a company with capital divided by shares;
provided, however, that the administrateurs and the membres du conseil de surveillance who are also Employees of the Subsidiary in accordance with a valid employment agreement pursuant to Applicable Laws may be granted Options
hereunder. For the purpose of this Appendix A, when applicable, the rules set forth for an Employee will be applicable to the aforementioned corporate officers. 
  

SECTION 3 
 STOCK SUBJECT TO THE PLAN

  
 3.1 Stock Subject to the Plan. The total number of
Options outstanding which may be exercised for newly issued Shares may at no time exceed that number equal to one-third of the Company’s voting stock, whether preferred stock of the Company or Common Stock. If any Optioned Stock is to consist
of reacquired Shares, such Optioned Stock must be purchased by the Company, in the limit of 10% of its share capital, prior to the date of the grant of the corresponding new Option and must be reserved and set aside for such purposes. In addition,
the new Option must be granted within one (1) year of the acquisition of the Shares underlying such new Option. 
  
 SECTION 4 
 LIMITATIONS 
  
 4.1 Limitations Upon Granting of Options. 
  
 4.1.1 Declaration of Dividend; Capital Increase. To the extent applicable to the Company, Options cannot be granted
during the 20 trading days from (i) the date the Common Stock is trading on an ex-dividend basis or (ii) a capital increase. 
  

 2 

 4.1.2 Non-Public Information. To the extent applicable to the Company, the Company will not grant
Options during the closed periods required under Section L 225-177 of the French Commercial Code. As a result, notwithstanding any other provision of the Plan, Options cannot be granted: 
  
 (a) during the ten (10) trading days preceding and following the date
on which the consolidated accounts, or, if unavailable, the annual accounts, are made public; 
  
 (b) during the period between the date on which the Company’s governing bodies (i.e., the Committee) become aware of information which, if made public, could have a material impact on the price of the Shares, and
the date ten (10) trading days after such information is made public. 
  
 4.1.3 Right to Employment. Neither the Plan nor any Option will confer upon any Participant any right with respect to continuing the Participant’s employment relationship with the Company or any
Subsidiary. 
  
 SECTION 5 
 EXERCISE PRICE 
  
 5.1 Exercise Price. The exercise price for the Shares to be issued pursuant to exercise of an Option will be determined by the Committee upon the
date of grant of the Option and stated in the Award Agreement, but in no event will be lower than the higher of (i) eighty percent (80%) of the Fair Market Value on the date the Option is granted or of the average purchase price of these
Shares by the Company, or (ii) the exercise price as determined under Section 5.3 of the Plan. The exercise price cannot be modified while the Option is outstanding, except as required by Applicable Laws. 
  
 SECTION 6 
 TERM OF OPTION 
  
 6.1 Term of Option. The term of each Option will be as stated in the Award Agreement; provided, however, that the maximum term of an Option will not exceed ten (10) years from the date of grant of the Option. 
  
 SECTION 7 
 EXERCISE OF OPTION; RESTRICTION ON SALE 
  
 7.1 Exercise of Option; Restriction on Sale. 
  
 7.1.1 Except as otherwise explicitly set forth in the Award Agreement, Options granted hereunder may be not be exercised within one (1) year of the date the Option is granted (the “Initial Exercise
Date”) whether or not the Option has vested prior to such time; provided, however, that the Initial Exercise Date will be automatically adjusted to conform with any changes under Applicable Laws so that the length of time from the date of grant
to the Initial Exercise Date when 

  

 3 

 
added to the length of time in which Shares may not be disposed of after the Initial Exercise Date as provided in Section 7.1.2 below, will allow for
favorable tax and social security treatment under Applicable Laws. Thereafter, Options may be exercised to the extent they have vested. Options granted hereunder will vest as the Committee determines, subject to Section 5.5 of the Plan.

  
 7.1.2 The Shares subject to an Option may not be transferred,
assigned or hypothecated in any manner otherwise than by will or by the laws of descent or distribution before the date three (3) years from the Initial Exercise Date, except for any events provided for in Article 91 ter of Annex II
to the French tax code; provided, however, that the duration of this restriction on sale will be automatically adjusted to conform with any changes to the holding period required for favorable tax and social security treatment under Applicable Laws
to the extent permitted under Applicable Laws. 
  
 7.1.3
Death of Participant. In the event of the death of an Participant while an Employee, the Option may be exercised at any time within six (6) months following the date of death by the Participant’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 Participant was entitled to exercise the Option at the date of death. 
  

 SECTION 8 
 NON-TRANSFERABILITY
OF OPTIONS 
  
 8.1
Non-Transferability of Options. 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 Participant, only by the Participant. 
  
 SECTION 9

 CHANGES IN CAPITALIZATION 
  
 9.1 Changes in Capitalization. If any adjustment provided for in Section 4.3 of the Plan to the exercise price and the number of shares of
Common Stock covered by outstanding Options would violate Applicable Laws in such a way to jeopardize the favorable tax and social security treatment of this Plan together with this Appendix A and the Options granted thereunder, then no such
adjustment will be made prior to the exercise of any such outstanding Option. 
  
 SECTION 10 
 INFORMATION STATEMENTS TO PARTICIPANTS 
  
 10.1 Information Statements to Participants. The Company or its French
Parent or Subsidiary, as required under Applicable Laws, will provide to each Participant, with copies to the appropriate governmental entities, such statements of information as required by the Applicable Laws. 
  

 4 

 SECTION 11 
 AMENDMENT OR TERMINATION OF PLAN 
  
 11.1 Effect of Amendment or Termination. No amendment, alteration, suspension or termination of the Plan will impair the rights of any Participant, unless mutually agreed otherwise between the Participant and the
Committee, which agreement must be in writing and signed by the Participant and the Company. Any favorable amendments or alterations are automatically deemed to be approved by Participant. Termination of the Plan will not affect the Committee’s
ability to exercise the powers granted to it hereunder with respect to Options granted under the Plan prior to the date of such termination. 
  
 SECTION 12 
 REPORTS TO SHAREHOLDERS 

 
 12.1 Reporting to the Shareholders’ Meeting. The Subsidiary of
the Company, if required under Applicable Laws, will provide its shareholders with an annual report with respect to Options granted and/or exercised by its Employees in the financial year. 
  

 5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00153-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00153-of-00352.parquet"}]]