Document:

Amended and Restated 2004 Stock Incentive Plan

Table of Contents

 SiRF TECHNOLOGY HOLDINGS, INC. 
 2004 STOCK INCENTIVE PLAN 
 (Adopted by the Board on March 9, 2004)

Table of Contents

 
Table of Contents 
  

					
	 	  	 	  	Page
		
	
SECTION 1. ESTABLISHMENT AND PURPOSE	  	1
		
	
SECTION 2. DEFINITIONS	  	1
	 (a)
	  	
“Affiliate”	  	1
	 (b)
	  	
“Award”	  	1
	 (c)
	  	
“Board of Directors”	  	1
	 (d)
	  	
“Change in Control”	  	1
	 (e)
	  	
“Code”	  	2
	 (f)
	  	
“Committee”	  	2
	 (g)
	  	
“Company”	  	2
	 (h)
	  	
“Consultant”	  	2
	 (i)
	  	
“Employee”	  	3
	 (j)
	  	
“Exchange Act”	  	3
	 (k)
	  	
“Exercise Price”	  	3
	 (l)
	  	
“Fair Market Value”	  	3
	 (m)
	  	
“ISO”	  	3
	 (n)
	  	
“Nonstatutory Option” or “NSO”	  	3
	 (o)
	  	
“Offeree”	  	3
	 (p)
	  	
“Option”	  	4
	 (q)
	  	
“Optionee”	  	4
	 (r)
	  	
“Outside Director”	  	4
	 (s)
	  	
“Parent”	  	4
	 (t)
	  	
“Participant”	  	4
	 (u)
	  	
“Plan”	  	4
	 (v)
	  	
“Purchase Price”	  	4
	 (w)
	  	
“Restricted Share”	  	4
	 (x)
	  	
“Restricted Share Agreement”	  	4
	 (y)
	  	
“SAR”	  	4
	 (z)
	  	
“SAR Agreement”	  	4
	 (aa)
	  	
“Service”	  	4
	 (bb)
	  	
“Share”	  	4
	 (cc)
	  	
“Stock”	  	4
	 (dd)
	  	
“Stock Option Agreement”	  	4
	 (ee)
	  	
“Stock Unit”	  	5
	 (ff)
	  	
“Stock Unit Agreement”	  	5
	 (gg)
	  	
“Subsidiary”	  	5
	 (hh)
	  	
“Total and Permanent Disability”	  	5
		
	
SECTION 3. ADMINISTRATION	  	5
	 (a)
	  	
Committee Composition	  	5
	 (b)
	  	
Committee for Non-Officer Grants	  	5
	 (c)
	  	
Committee Procedures	  	5

  
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PLAN 
  

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	(d)	  	
Committee Responsibilities 	  	6
		
	
SECTION 4. ELIGIBILITY	  	7
	(a)	  	
General Rule	  	7
	(b)	  	
Automatic Grants to Outside Directors	  	7
	(c)	  	
Ten-Percent Stockholders	  	8
	(d)	  	
Attribution Rules	  	8
	(e)	  	
Outstanding Stock	  	8
		
	
SECTION 5. STOCK SUBJECT TO PLAN	  	8
	(a)	  	
Basic Limitation	  	8
	(b)	  	
Option/SAR Limitation	  	8
	(c)	  	
Additional Shares	  	9
		
	
SECTION 6. RESTRICTED SHARES	  	9
	(a)	  	
Restricted Stock Agreement	  	9
	(b)	  	
Payment for Awards	  	9
	(c)	  	
Vesting	  	9
	(d)	  	
Voting and Dividend Rights	  	9
	(e)	  	
Restrictions on Transfer of Shares	  	10
		
	
SECTION 7. TERMS AND CONDITIONS OF OPTIONS	  	10
	(a)	  	
Stock Option Agreement	  	10
	(b)	  	
Number of Shares	  	10
	(c)	  	
Exercise Price	  	10
	(d)	  	
Withholding Taxes	  	10
	(e)	  	
Exercisability and Term	  	10
	(f)	  	
Exercise of Options	  	11
	(g)	  	
Effect of Change in Control	  	11
	(h)	  	
Leaves of Absence	  	11
	(i)	  	
No Rights as a Stockholder	  	11
	(j)	  	
Modification, Extension and Renewal of Options	  	11
	(k)	  	
Restrictions on Transfer of Shares	  	12
	(l)	  	
Buyout Provisions	  	12
		
	
SECTION 8. PAYMENT FOR SHARES	  	12
	(a)	  	
General Rule	  	12
	(b)	  	
Surrender of Stock	  	12
	(c)	  	
Services Rendered	  	12
	(d)	  	
Cashless Exercise	  	12
	(e)	  	
Exercise/Pledge	  	12
	(f)	  	
Promissory Note	  	12
	(g)	  	
Other Forms of Payment	  	13
	(h)	  	
Limitations under Applicable Law	  	13
		
	
SECTION 9. STOCK APPRECIATION RIGHTS	  	13

  
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	 (a)
	  	
SAR Agreement	  	13
	 (b)
	  	
Number of Shares	  	13
	 (c)
	  	
Exercise Price	  	13
	 (d)
	  	
Exercisability and Term	  	13
	 (e)
	  	
Effect of Change in Control	  	13
	 (f)
	  	
Exercise of SARs	  	13
	 (g)
	  	
Modification or Assumption of SARs	  	14
		
	 
SECTION 10. STOCK UNITS 
	  	14
	 (a)
	  	
Stock Unit Agreement	  	14
	 (b)
	  	
Payment for Awards	  	14
	 (c)
	  	
Vesting Conditions	  	14
	 (d)
	  	
Voting and Dividend Rights	  	14
	 (e)
	  	
Form and Time of Settlement of Stock Units	  	14
	 (f)
	  	
Death of Recipient	  	15
	 (g)
	  	
Creditors’ Rights	  	15
		
	 SECTION 11. ADJUSTMENT
OF SHARES 
	  	15
	 (a)
	  	
Adjustments	  	15
	 (b)
	  	
Dissolution or Liquidation	  	16
	 (c)
	  	
Reorganizations	  	16
	 (d)
	  	
Reservation of Rights	  	16
		
	 
SECTION 12. DEFERRAL OF AWARDS 
	  	16
		
	 
SECTION 13. AWARDS UNDER OTHER PLANS 
	  	17
		
	 
SECTION 14. PAYMENT OF DIRECTOR’S FEES IN SECURITIES 
	  	17
	 (a)
	  	
Effective Date	  	17
	 (b)
	  	
Elections to Receive NSOs, Restricted Shares or Stock Units	  	17
	 (c)
	  	
Number and Terms of NSOs, Restricted Shares or Stock Units	  	17
		
	 
SECTION 15. LEGAL AND REGULATORY REQUIREMENTS
	  	18
		
	 
SECTION 16. WITHHOLDING TAXES
	  	18
	 (a)
	  	
General	  	18
	 (b)
	  	
Share Withholding	  	18
		
	 
SECTION 17. LIMITATION ON PARACHUTE PAYMENTS 
	  	18
	 (a)
	  	
Scope of Limitation	  	18
	 (b)
	  	
Basic Rule	  	18
	 (c)
	  	
Reduction of Payments	  	18
	 (d)
	  	
Related Corporations	  	19
		
	 
SECTION 18. NO EMPLOYMENT RIGHTS
	  	19
		
	 
SECTION 19. DURATION AND AMENDMENTS
	  	19

  
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	 (a)
	  	
Term of the Plan	  	19
	 (b)
	  	
Right to Amend or Terminate the Plan	  	19
	 (c)
	  	
Effect of Amendment or Termination	  	19
		
	 
SECTION 20. EXECUTION 
	  	21

  
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 SiRF TECHNOLOGY HOLDINGS, INC. 
 2004 STOCK INCENTIVE PLAN 
 
SECTION 1. ESTABLISHMENT AND PURPOSE 
 The Plan was adopted by the Board of Directors on March 9,
2004, effective as of the date of the initial offering of Stock to the public pursuant to a registration statement filed by the Company with the Securities and Exchange Commission. The purpose of the Plan is to promote the long-term success of the
Company and the creation of stockholder value by (a) encouraging Employees, Outside Directors and Consultants to focus on critical long-range objectives, (b) encouraging the attraction and retention of Employees, Outside Directors and
Consultants with exceptional qualifications and (c) linking Employees, Outside Directors and Consultants directly to stockholder interests through increased stock ownership. The Plan seeks to achieve this purpose by providing for Awards in the
form of restricted shares, stock units, options (which may constitute incentive stock options or nonstatutory stock options) or stock appreciation rights. 
 
SECTION 2. DEFINITIONS 
 (
a) “Affiliate” shall mean any entity other than a Subsidiary, if the Company and/or one of more Subsidiaries own not less than 50% of such entity. 
 
(b) “Award” shall mean any award of an Option, a SAR, a Restricted Share or a Stock Unit under the Plan. 
 
(c) “Board of Directors” shall mean the Board of Directors of the Company, as constituted from time to time. 
 
(d) “Change in Control” shall mean the occurrence of any of the following events: 
 (i) A change in the composition of the Board of Directors occurs, as a result of which fewer than one-half of the incumbent directors are directors who either: 
 (A) Had been directors of the Company on the “look-back date” (as defined below) (the “original directors”); or

 (B) Were elected, or nominated for election, to the Board of Directors with the affirmative votes of at least a majority of
the aggregate of the original directors who were still in office at the time of the election or nomination and the directors whose election or nomination was previously so approved (the “continuing directors”); or 
 (ii) Any “person” (as defined below) who by the acquisition or aggregation of securities, is or becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding securities ordinarily (and apart
from rights accruing under special circumstances) having the right to vote at elections of directors (the 
  
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 “Base Capital Stock”); except that any change in the relative beneficial ownership of the
Company’s securities by any person resulting solely from a reduction in the aggregate number of outstanding shares of Base Capital Stock, and any decrease thereafter in such person’s ownership of securities, shall be disregarded until such
person increases in any manner, directly or indirectly, such person’s beneficial ownership of any securities of the Company; or 
 (iii) The consummation of a merger or consolidation of the Company with or into another entity or any other corporate reorganization, if persons who were not stockholders of the Company immediately prior to such merger, consolidation or
other reorganization own immediately after such merger, consolidation or other reorganization 50% or more of the voting power of the outstanding securities of each of (A) the continuing or surviving entity and (B) any direct or indirect
parent corporation of such continuing or surviving entity; or 
 (iv) The sale, transfer or other disposition of all or
substantially all of the Company’s assets. 
 For purposes of subsection (d)(i) above, the term “look-back” date shall mean
the later of (1) March 9, 2004 or (2) the date 24 months prior to the date of the event that may constitute a Change in Control. 
 For purposes of subsection (d)(ii)) above, the term “person” shall have the same meaning as when used in Sections 13(d) and 14(d) of the Exchange Act but shall exclude (1) a trustee or other
fiduciary holding securities under an employee benefit plan maintained by the Company or a Parent or Subsidiary and (2) a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their
ownership of the Stock. 
 Any other provision of this Section 2(d) notwithstanding, a transaction shall not constitute a Change in
Control if its sole purpose is to change the state of the Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before
such transaction, and a Change in Control shall not be deemed to occur if the Company files a registration statement with the Securities and Exchange Commission for the initial offering of Stock to the public. 
 
(e) “Code” shall mean the Internal Revenue Code of 1986, as amended. 
 
(f) “Committee” shall mean the Compensation Committee as designated by the Board of Directors, which is authorized to administer the Plan, as described in Section 3 hereof. 
 
(g) “Company” shall mean SiRF Technology Holdings, Inc., a Delaware corporation. 
 
(h) “Consultant” shall mean a consultant or advisor who provides bona fide services to the Company, a Parent, a Subsidiary or an Affiliate as an independent contractor or a member of the board of
directors of a Parent or a Subsidiary who is not an Employee. Service as a Consultant shall be considered Service for all purposes of the Plan. 
  
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(i) “Employee” shall mean any individual who is a common-law employee of the Company, a Parent or a Subsidiary. 
 
(j) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
 
(k) “Exercise Price” shall mean, in the case of an Option, the amount for which one Common Share may be purchased upon exercise of such Option, as specified in the applicable Stock Option
Agreement. “Exercise Price,” in the case of a SAR, shall mean an amount, as specified in the applicable SAR Agreement, which is subtracted from the Fair Market Value of one Common Share in determining the amount payable upon exercise of
such SAR. 
 
(l) “Fair Market Value” with respect to a Share, shall mean the market price of one Share of Stock, determined by the Committee as follows: 
 (i) If the Stock was traded over-the-counter on the date in question but was not traded on The Nasdaq Stock Market, then the Fair Market
Value shall be equal to the last transaction price quoted for such date by the OTC Bulletin Board or, if not so quoted, shall be equal to the mean between the last reported representative bid and asked prices quoted for such date by the principal
automated inter-dealer quotation system on which the Stock is quoted or, if the Stock is not quoted on any such system, by the “Pink Sheets” published by the National Quotation Bureau, Inc.; 
 (ii) If the Stock was traded on The Nasdaq Stock Market, then the Fair Market Value shall be equal to the last reported sale price quoted
for such date by The Nasdaq Stock Market; 
 (iii) If the Stock was traded on a United States stock exchange on the date in
question, then the Fair Market Value shall be equal to the closing price reported for such date by the applicable composite-transactions report; and 
 (iv) If none of the foregoing provisions is applicable, then the Fair Market Value shall be determined by the Committee in good faith on such basis as it deems appropriate. 
 In all cases, the determination of Fair Market Value by the Committee shall be conclusive and binding on all persons. 
 
(m) “ISO” shall mean an employee incentive stock option described in Section 422 of the Code. 
 
(n) “Nonstatutory Option” or “NSO” shall mean an employee stock option that is not an ISO. 
 
(o) “Offeree” shall mean an individual to whom the Committee has offered the right to acquire Shares under the Plan (other than upon exercise of an Option). 
  
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(p) “Option” shall mean an ISO or Nonstatutory Option granted under the Plan and entitling the holder to purchase Shares. 
 
(q) “Optionee” shall mean an individual or estate who holds an Option or SAR. 
 
(r) “Outside Director” shall mean a member of the Board of Directors who is not a common-law employee of, or paid consultant to, the Company, a Parent or a Subsidiary. Service as an Outside
Director shall be considered Service for all purposes of the Plan, except as provided in Section 4(a). 
 
(s) “Parent” shall mean any corporation (other than the Company) in an unbroken chain of corporations ending with the Company, if each of the corporations other than the Company owns stock
possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a Parent on a date after the adoption of the Plan shall be a Parent commencing
as of such date. 
 
(t) “Participant” shall mean an individual or estate who holds an Award. 
 
(u) “Plan” shall mean this 2004 Stock Incentive Plan of SiRF Technology Holdings, Inc., as amended from time to time. 
 
(v) “Purchase Price” shall mean the consideration for which one Share may be acquired under the Plan (other than upon exercise of an Option), as specified by the Committee. 
 
(w) “Restricted Share” shall mean a Share awarded under the Plan. 
 
(x) “Restricted Share Agreement” shall mean the agreement between the Company and the recipient of a Restricted Share which contains the terms, conditions and restrictions pertaining to such
Restricted Shares. 
 
(y) “SAR” shall mean a stock appreciation right granted under the Plan. 
 
(z) “SAR Agreement” shall mean the agreement between the Company and an Optionee which contains the terms, conditions and restrictions pertaining to his or her SAR. 
 
(aa) “Service” shall mean service as an Employee, Consultant or Outside Director. 
 
(bb) “Share” shall mean one share of Stock, as adjusted in accordance with Section 8 (if applicable). 
 
(cc) “Stock” shall mean the Common Stock of the Company. 
 
(dd) “Stock Option Agreement” shall mean the agreement between the Company and an Optionee that contains the terms, conditions and restrictions pertaining to his Option. 
  
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(ee) “Stock Unit” shall mean a bookkeeping entry representing the equivalent of one Share, as awarded under the Plan. 
 
(ff) “Stock Unit Agreement” shall mean the agreement between the Company and the recipient of a Stock Unit which contains the terms, conditions and restrictions pertaining to such Stock Unit.

 
(gg) “Subsidiary” shall mean any corporation, if the Company and/or one or more other Subsidiaries own not less than 50% of the total combined voting power of all classes of outstanding stock
of such corporation. A corporation that attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date. 
 
(hh) “Total and Permanent Disability” shall mean that the Optionee is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment
that can be expected to result in death or that has lasted, or can be expected to last, for a continuous period of not less than 12 months. 
 

SECTION 3. ADMINISTRATION 
 
(a) Committee Composition. The Plan shall be administered by the Committee. The Committee shall consist of two or more directors of the Company, who shall be appointed by the Board. In addition, the
composition of the Committee shall satisfy (i) such requirements as the Securities and Exchange Commission may establish for administrators acting under plans intended to qualify for exemption under Rule 16b-3 (or its successor) under the Exchange
Act; and (ii) such requirements as the Internal Revenue Service may establish for outside directors acting under plans intended to qualify for exemption under Section 162(m)(4)(C) of the Code. 
 
(b) Committee for Non-Officer Grants. The Board may also appoint one or more separate committees of the Board, each composed of one or more directors of the Company who need not satisfy the requirements
of Section 3(a), who may administer the Plan with respect to Employees who are not considered officers or directors of the Company under Section 16 of the Exchange Act, may grant Awards under the Plan to such Employees and may determine all terms of
such grants. Within the limitations of the preceding sentence, any reference in the Plan to the Committee shall include such committee or committees appointed pursuant to the preceding sentence. The Board of Directors may also authorize one or more
officers of the Company to designate Employees, other than officers under Section 16 of the Exchange Act, to receive Awards and/or to determine the number of such Awards to be received by such persons; provided, however, that the Board of Directors
shall specify the total number of Awards that such officers may so award. 
 
(c) Committee Procedures. The Board of Directors shall designate one of the members of the Committee as chairman. The Committee may hold meetings at such times and places as it shall determine. The acts
of a majority of the Committee members present at meetings at which a quorum exists, or acts reduced to or approved in writing by all Committee members, shall be valid acts of the Committee. 
  
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(d) Committee Responsibilities. Subject to the provisions of the Plan, the Committee shall have full authority and discretion to take the following actions:  
 (i) To interpret the Plan and to apply its provisions; 
 (ii) To adopt, amend or rescind rules, procedures and forms relating to the Plan; 
 (iii) To authorize any person to execute, on behalf of the Company, any instrument required to carry out the purposes of the Plan;

 (iv) To determine when Shares are to be awarded or offered for sale and when Options are to be granted under the Plan;

 (v) To select the Offerees and Optionees; 
 (vi) To determine the number of Shares to be offered to each Offeree or to be made subject to each Option; 
 (vii) To prescribe the terms and conditions of each award or sale of Shares, including (without limitation) the Purchase Price, the
vesting of the award (including accelerating the vesting of awards, either at the time of the award or sale or thereafter, without the consent of the Offeree or Optionee) and to specify the provisions of the Restricted Stock Agreement relating to
such award or sale; 
 (viii) To prescribe the terms and conditions of each Option, including (without limitation) the
Exercise Price, the vesting or duration of the Option (including accelerating the vesting of the Option), to determine whether such Option is to be classified as an ISO or as a Nonstatutory Option, and to specify the provisions of the Stock Option
Agreement relating to such Option; 
 (ix) To amend any outstanding Restricted Stock Agreement or Stock Option Agreement,
subject to applicable legal restrictions and to the consent of the Offeree or Optionee who entered into such agreement if the Offeree’s or Optionee’s rights or obligations would be adversely affected; 
 (x) To prescribe the consideration for the grant of each Option or other right under the Plan and to determine the sufficiency of such
consideration; 
 (xi) To determine the disposition of each Option or other right under the Plan in the event of an
Optionee’s or Offeree’s divorce or dissolution of marriage; 
 (xii) To determine whether Options or other rights
under the Plan will be granted in replacement of other grants under an incentive or other compensation plan of an acquired business; 
  
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 (xiii) To correct any defect, supply any omission, or reconcile any inconsistency in the
Plan, any Stock Option Agreement or any Restricted Stock Agreement; and 
 (xiv) To take any other actions deemed necessary or
advisable for the administration of the Plan. 
 Subject to the requirements of applicable law, the Committee may designate persons other than members of the
Committee to carry out its responsibilities and may prescribe such conditions and limitations as it may deem appropriate, except that the Committee may not delegate its authority with regard to the selection for participation of or the granting of
Options or other rights under the Plan to persons subject to Section 16 of the Exchange Act. All decisions, interpretations and other actions of the Committee shall be final and binding on all Offerees, all Optionees, and all persons deriving
their rights from an Offeree or Optionee. No member of the Committee shall be liable for any action that he has taken or has failed to take in good faith with respect to the Plan, any Option, or any right to acquire Shares under the Plan.

 SECTION 4.
ELIGIBILITY 
 (a)
General Rule. Only Employees shall be eligible for the grant of ISOs. Only Employees, Consultants and Outside Directors shall be eligible for the grant of Restricted Shares, Stock Units, Nonstatutory Options or
SARs. 
 (b)
Automatic Grants to Outside Directors. 
 (i) Each Outside Director who first joins the
Board of Directors after the effective date of the Plan, and who was not previously an Employee, shall receive a Nonstatutory Option, subject to approval of the Plan by the Company’s stockholders, to purchase 50,000 Shares (subject to
adjustment under Section 11) on the first business day after his or her election to the Board of Directors. Twenty-five percent (25%) of the Shares subject to each Option granted under this Section 4(b)(i) shall vest and become
exercisable on the first anniversary of the date of grant. The balance of the Shares subject to such Option (i.e. the remaining seventy-five percent (75%)) shall vest and become exercisable monthly over a three-year period beginning on the day
which is one month after the first anniversary of the date of grant, at a monthly rate of 2.0833% of the total number of Shares subject to such Options. Notwithstanding the foregoing, each such Option shall become vested if a Change in Control
occurs with respect to the Company during the Optionee’s Service. 
 (ii) On the first business day following the
conclusion of each regular annual meeting of the Company’s stockholders, commencing with the annual meeting occurring after the adoption of the Plan, each Outside Director who was not elected to the Board for the first time at such meeting and
who will continue serving as a member of the Board of Directors thereafter shall receive an Option to purchase 18,000 Shares (subject to adjustment under Section 11), provided that such Outside Director has served on the Board of Directors for
at least six months. The Shares subject to each Option granted under this Section 4(b)(ii) shall vest and become exercisable in full on the first anniversary of the date of grant. Notwithstanding the 
  
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foregoing, each Option granted under this Section 4(b)(ii) shall become vested if a Change in Control occurs with respect to the Company during the
Optionee’s Service. 
 (iii) The Exercise Price of all Nonstatutory Options granted to an Outside Director under this
Section 4(b) shall be equal to 100% of the Fair Market Value of a Share on the date of grant, payable in one of the forms described in Section 8(a), (b) or (d). 
 (iv) All Nonstatutory Options granted to an Outside Director under this Section 4(b) shall terminate on the earlier of (A) the
day before the tenth anniversary of the date of grant of such Options or (B) the date twelve months after the termination of such Outside Director’s Service for any reason; provided, however, that any such Options that are not vested upon
the termination of the Outside Director’s Service for any reason shall terminate immediately and may not be exercised. 
 
(c) Ten-Percent Stockholders. An Employee who owns more than 10% of the total combined voting power of all classes of outstanding stock of the Company, a Parent or Subsidiary shall not be eligible for the grant of
an ISO unless such grant satisfies the requirements of Section 422(c)(5) of the Code. 
 
(d) Attribution Rules. For purposes of Section 4(c) above, in determining stock ownership, an Employee shall be deemed to own the stock owned, directly or indirectly, by or for such Employee’s brothers,
sisters, spouse, ancestors and lineal descendants. Stock owned, directly or indirectly, by or for a corporation, partnership, estate or trust shall be deemed to be owned proportionately by or for its stockholders, partners or beneficiaries.

 
(e) Outstanding Stock. For purposes of Section 4(c) above, “outstanding stock” shall include all stock actually issued and outstanding immediately after the grant. “Outstanding stock”
shall not include shares authorized for issuance under outstanding options held by the Employee or by any other person. 
 
SECTION 5. STOCK SUBJECT TO PLAN 
 
(a) Basic Limitation. Shares offered under the Plan shall be authorized but unissued Shares or treasury Shares. The maximum aggregate number of Options, SARs, Stock Units and Restricted Shares awarded under the
Plan shall not exceed 5,000,000 Shares, plus an annual increase on the first day of each fiscal year during the term of the Plan, beginning January 1, 2005, in each case in an amount equal to the lesser of (i) 5,000,000 Shares,
(ii) 5% of the outstanding Shares on the last day of the immediately preceding year, or (iii) an amount determined by the Board. The limitations of this Section 5(a) shall be subject to adjustment pursuant to Section 11. The
number of Shares that are subject to Options or other rights outstanding at any time under the Plan shall not exceed the number of Shares which then remain available for issuance under the Plan. The Company, during the term of the Plan, shall at all
times reserve and keep available sufficient Shares to satisfy the requirements of the Plan. 
 
(b) Option/SAR Limitation. Subject to the provisions of Section 11, no Participant may receive Options or SARs under the Plan in any calendar year that relate to more than  
  
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 1,000,000 Shares, except that grants to a Participant in the calendar year in which his or her service first commences
shall not relate to more than 4,000,000 Shares. 
 (c)
Additional Shares. If Restricted Shares or Shares issued upon the exercise of Options are forfeited, then such Shares shall again become available for Awards under the Plan. If Stock Units, Options or SARs are
forfeited or terminate for any other reason before being exercised, then the corresponding Shares shall again become available for Awards under the Plan. If Stock Units are settled, then only the number of Shares (if any) actually issued in
settlement of such Stock Units shall reduce the number available under Section 5(a) and the balance shall again become available for Awards under the Plan. If SARs are exercised, then only the number of Shares (if any) actually issued in
settlement of such SARs shall reduce the number available in Section 5(a) and the balance shall again become available for Awards under the Plan. 
 SECTION 6.
RESTRICTED SHARES 
 (a)
Restricted Stock Agreement. Each grant of Restricted Shares under the Plan shall be evidenced by a Restricted Stock Agreement between the recipient and the Company. Such Restricted Shares shall be subject to all
applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Restricted Stock Agreements entered into under the Plan need not be identical. 
 (b)
Payment for Awards. Subject to the following sentence, Restricted Shares may be sold or awarded under the Plan for such consideration as the Committee may determine, including (without limitation) cash, cash
equivalents, full-recourse promissory notes, past services and future services. To the extent that an Award consists of newly issued Restricted Shares, the Award recipient shall furnish consideration with a value not less than the par value of such
Restricted Shares in the form of cash, cash equivalents, or past services rendered to the Company (or a Parent or Subsidiary), as the Committee may determine. 
 (c)
Vesting. Each Award of Restricted Shares may or may not be subject to vesting. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Restricted Stock Agreement. A
Restricted Stock Agreement may provide for accelerated vesting in the event of the Participant’s death, disability or retirement or other events. The Committee may determine, at the time of granting Restricted Shares of thereafter, that all or
part of such Restricted Shares shall become vested in the event that a Change in Control occurs with respect to the Company. 
 (d )
Voting and Dividend Rights. The holders of Restricted Shares awarded under the Plan shall have the same voting, dividend and other rights as the Company’s other stockholders. A Restricted Stock Agreement,
however, may require that the holders of Restricted Shares invest any cash dividends received in additional Restricted Shares. Such additional Restricted Shares shall be subject to the same conditions and restrictions as the Award with respect to
which the dividends were paid. 
  
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 (e)
Restrictions on Transfer of Shares. Restricted Shares shall be subject to such rights of repurchase, rights of first refusal or other restrictions as the Committee may determine. Such restrictions shall be set
forth in the applicable Restricted Stock Agreement and shall apply in addition to any general restrictions that may apply to all holders of Shares. 
 SECTION 7.
TERMS AND CONDITIONS OF OPTIONS 
 (a)
Stock Option Agreement. Each grant of an Option under the Plan shall be evidenced by a Stock Option Agreement between the Optionee and the Company. Such Option shall be subject to all applicable terms and
conditions of the Plan and may be subject to any other terms and conditions which are not inconsistent with the Plan and which the Committee deems appropriate for inclusion in a Stock Option Agreement. The Stock Option Agreement shall specify
whether the Option is an ISO or an NSO. The provisions of the various Stock Option Agreements entered into under the Plan need not be identical. Options may be granted in consideration of a reduction in the Optionee’s other compensation.

 (b)
Number of Shares. Each Stock Option Agreement shall specify the number of Shares that are subject to the Option and shall provide for the adjustment of such number in accordance with Section 11. 

(c)
Exercise Price. Each Stock Option Agreement shall specify the Exercise Price. The Exercise Price of an ISO shall not be less than 100% of the Fair Market Value of a Share on the date of grant, except as otherwise
provided in 4(c), and the Exercise Price of an NSO shall not be less 85% of the Fair Market Value of a Share on the date of grant. Notwithstanding the foregoing, a Stock Option Agreement may specify that the exercise price of an NSO may vary in
accordance with a predetermined formula. Subject to the foregoing in this Section 7(c), the Exercise Price under any Option shall be determined by the Committee at its sole discretion. The Exercise Price shall be payable in one of the forms
described in Section 8. 
 (d)
Withholding Taxes. As a condition to the exercise of an Option, the Optionee shall make such arrangements as the Committee may require for the satisfaction of any federal, state, local or foreign withholding tax
obligations that may arise in connection with such exercise. The Optionee shall also make such arrangements as the Committee may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in
connection with the disposition of Shares acquired by exercising an Option. 
 (e)
Exercisability and Term. Each Stock Option Agreement shall specify the date when all or any installment of the Option is to become exercisable. The Stock Option Agreement shall also specify the term of the Option;
provided that the term of an ISO shall in no event exceed 10 years from the date of grant (five years for Employees described in Section 4(c). A Stock Option Agreement may provide for accelerated exercisability in the event of the
Optionee’s death, disability, or retirement or other events and may provide for expiration prior to the end of its term in the event of the termination of the Optionee’s Service. Options may be awarded in combination with SARs, and such an
Award may provide that the Options will not be exercisable unless the related SARs are forfeited. Subject to the foregoing in this Section 7(e), 
  
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 the Committee at its sole discretion shall determine when all or any installment of an Option is to become exercisable
and when an Option is to expire. 
 
(f) Exercise of Options. Upon Termination of Service. Each Stock Option Agreement shall set forth the extent to which the Optionee shall have the right to exercise the Option following termination of the
Optionee’s Service with the Company and its Subsidiaries, and the right to exercise the Option of any executors or administrators of the Optionee’s estate or any person who has acquired such Option(s) directly from the Optionee by bequest
or inheritance. Such provisions shall be determined in the sole discretion of the Committee, need not be uniform among all Options issued pursuant to the Plan, and may reflect distinctions based on the reasons for termination of Service. 

(g) Effect of Change in Control. The Committee may determine, at the time of granting an Option or thereafter, that such Option shall become exercisable as to all or part of the Shares subject to such
Option in the event that a Change in Control occurs with respect to the Company. 
 
(h) Leaves of Absence. An Employee’s Service shall cease when such Employee ceases to be actively employed by, or a Consultant to, the Company (or any subsidiary) as determined in the sole discretion of
the Board of Directors. For purposes of Options, Service does not terminate when an Employee goes on a bona fide leave of absence, that was approved by the Company in writing, if the terms of the leave provide for continued service crediting, or
when continued service crediting is required by applicable law. However, for purposes of determining whether an Option is entitled to ISO status, an Employee’s Service will be treated as terminating 90 days after such Employee went on leave,
unless such Employee’s right to return to active work is guaranteed by law or by a contract. Service terminates in any event when the approved leave ends, unless such Employee immediately returns to active work. The Company determines which
leaves count toward Service, and when Service terminates for all purposes under the Plan. 
 
(i) No Rights as a Stockholder. An Optionee, or a transferee of an Optionee, shall have no rights as a stockholder with respect to any Shares covered by his Option until the date of the issuance of a stock
certificate for such Shares. No adjustments shall be made, except as provided in Section 11. 
 
(j) Modification, Extension and Renewal of Options. Within the limitations of the Plan, the Committee may modify, extend or renew outstanding options or may accept the cancellation of outstanding options (to
the extent not previously exercised), whether or not granted hereunder, in return for the grant of new Options for the same or a different number of Shares and at the same or a different exercise price, or in return for the grant of the same or a
different number of Shares. The foregoing notwithstanding, no modification of an Option shall, without the consent of the Optionee, adversely affect his or her rights or obligations under such Option. 
  
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(k) Restrictions on Transfer of Shares. Any Shares issued upon exercise of an Option shall be subject to such special forfeiture conditions, rights of repurchase, rights of first refusal and other transfer
restrictions as the Committee may determine. Such restrictions shall be set forth in the applicable Stock Option Agreement and shall apply in addition to any general restrictions that may apply to all holders of Shares. 
 
(l) Buyout Provisions. The Committee may at any time (a) offer to buy out for a payment in cash or cash equivalents an Option previously granted or (b) authorize an Optionee to elect to cash out an
Option previously granted, in either case at such time and based upon such terms and conditions as the Committee shall establish. 
 
SECTION 8. PAYMENT FOR SHARES 
 
(a) General Rule. The entire Exercise Price or Purchase Price of Shares issued under the Plan shall be payable in lawful money of the United States of America at the time when such Shares are purchased, except
as provided in Section 8(b) through Section 8(g) below. 
 
(b) Surrender of Stock. To the extent that a Stock Option Agreement so provides, payment may be made all or in part by surrendering, or attesting to the ownership of, Shares which have already been owned by the
Optionee or his representative. Such Shares shall be valued at their Fair Market Value on the date when the new Shares are purchased under the Plan. The Optionee shall not surrender, or attest to the ownership of, Shares in payment of the Exercise
Price if such action would cause the Company to recognize compensation expense (or additional compensation expense) with respect to the Option for financial reporting purposes. 
 
(c) Services Rendered. At the discretion of the Committee, Shares may be awarded under the Plan in consideration of services rendered to the Company or a Subsidiary prior to the award. If Shares are awarded
without the payment of a Purchase Price in cash, the Committee shall make a determination (at the time of the award) of the value of the services rendered by the Offeree and the sufficiency of the consideration to meet the requirements of Section
6(b). 
 
(d) Cashless Exercise. To the extent that a Stock Option Agreement so provides, payment may be made all or in part by delivery (on a form prescribed by the Committee) of an irrevocable direction to a securities
broker to sell Shares and to deliver all or part of the sale proceeds to the Company in payment of the aggregate Exercise Price. 
 
(e) Exercise/Pledge. To the extent that a Stock Option Agreement so provides, payment may be made all or in part by delivery (on a form prescribed by the Committee) of an irrevocable direction to a securities
broker or lender to pledge Shares, as security for a loan, and to deliver all or part of the loan proceeds to the Company in payment of the aggregate Exercise Price. 
 
(f) Promissory Note. To the extent that a Stock Option Agreement or Restricted Stock Agreement so provides, payment may be made all or in part by delivering (on a form prescribed by the Company) a full-recourse
promissory note. However, the par value of the 
  
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 Common Shares being purchased under the Plan, if newly issued, shall be paid in cash or cash equivalents. 
 
(g) Other Forms of Payment. To the extent that a Stock Option Agreement or Restricted Stock Agreement so provides, payment may be made in any other form that is consistent with applicable laws, regulations and
rules. 
 
(h) Limitations under Applicable Law. Notwithstanding anything herein or in a Stock Option Agreement or Restricted Stock Agreement to the contrary, payment may not be made in any form that is unlawful, as
determined by the Committee in its sole discretion. 
 
SECTION 9. STOCK APPRECIATION RIGHTS 
 . 
 
(a) SAR Agreement. Each grant of a SAR under the Plan shall be evidenced by a SAR Agreement between the Optionee and the Company. Such SAR shall be subject to all applicable terms of the Plan and may be subject
to any other terms that are not inconsistent with the Plan. The provisions of the various SAR Agreements entered into under the Plan need not be identical. SARs may be granted in consideration of a reduction in the Optionee’s other
compensation. 
 
(b) Number of Shares. Each SAR Agreement shall specify the number of Shares to which the SAR pertains and shall provide for the adjustment of such number in accordance with Section 11. 
 
(c) Exercise Price. Each SAR Agreement shall specify the Exercise Price. A SAR Agreement may specify an Exercise Price that varies in accordance with a predetermined formula while the SAR is outstanding.

 
(d) Exercisability and Term. Each SAR Agreement shall specify the date when all or any installment of the SAR is to become exercisable. The SAR Agreement shall also specify the term of the SAR. A SAR Agreement
may provide for accelerated exercisability in the event of the Optionee’s death, disability or retirement or other events and may provide for expiration prior to the end of its term in the event of the termination of the Optionee’s
service. SARs may be awarded in combination with Options, and such an Award may provide that the SARs will not be exercisable unless the related Options are forfeited. A SAR may be included in an ISO only at the time of grant but may be included in
an NSO at the time of grant or thereafter. A SAR granted under the Plan may provide that it will be exercisable only in the event of a Change in Control. 
 
(e) Effect of Change in Control. The Committee may determine, at the time of granting a SAR or thereafter, that such SAR shall become fully exercisable as to all Common Shares subject to such SAR in the event
that a Change in Control occurs with respect to the Company. 
 
(f) Exercise of SARs. Upon exercise of a SAR, the Optionee (or any person having the right to exercise the SAR after his or her death) shall receive from the Company (a) Shares, 
  
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(b) cash or (c) a combination of Shares and cash, as the Committee shall determine. The amount of cash and/or the Fair Market Value of Shares received
upon exercise of SARs shall, in the aggregate, be equal to the amount by which the Fair Market Value (on the date of surrender) of the Shares subject to the SARs exceeds the Exercise Price. 
 (g)
 Modification or Assumption of SARs. Within the limitations of the Plan, the Committee may modify, extend or assume outstanding SARs or may accept the cancellation of outstanding SARs (whether granted by
the Company or by another issuer) in return for the grant of new SARs for the same or a different number of shares and at the same or a different exercise price. The foregoing notwithstanding, no modification of a SAR shall, without the consent of
the holder, may alter or impair his or her rights or obligations under such SAR. 
 S
ECTION 10. STOCK UNITS 
 (a)
 Stock Unit Agreement. Each grant of Stock Units under the Plan shall be evidenced by a Stock Unit Agreement between the recipient and the Company. Such Stock Units shall be subject to all applicable terms of the
Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Stock Unit Agreements entered into under the Plan need not be identical. Stock Units may be granted in consideration of a reduction in
the recipient’s other compensation. 
 (
b) Payment for Awards. To the extent that an Award is granted in the form of Stock Units, no cash consideration shall be required of the Award recipients. 
 (c)
 Vesting Conditions. Each Award of Stock Units may or may not be subject to vesting. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Stock Unit Agreement. A
Stock Unit Agreement may provide for accelerated vesting in the event of the Participant’s death, disability or retirement or other events. The Committee may determine, at the time of granting Stock Units or thereafter, that all or part of such
Stock Units shall become vested in the event that a Change in Control occurs with respect to the Company. 
 (d)
 Voting and Dividend Rights. The holders of Stock Units shall have no voting rights. Prior to settlement or forfeiture, any Stock Unit awarded under the Plan may, at the Committee’s discretion, carry with it
a right to dividend equivalents. Such right entitles the holder to be credited with an amount equal to all cash dividends paid on one Share while the Stock Unit is outstanding. Dividend equivalents may be converted into additional Stock Units.
Settlement of dividend equivalents may be made in the form of cash, in the form of Shares, or in a combination of both. Prior to distribution, any dividend equivalents which are not paid shall be subject to the same conditions and restrictions
(including without limitation, any forfeiture conditions) as the Stock Units to which they attach. 
 (e)
 Form and Time of Settlement of Stock Units. Settlement of vested Stock Units may be made in the form of (a) cash, (b) Shares or (c) any combination of both, as determined by the Committee. The
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smaller than the number included in the original Award, based on predetermined performance factors. Methods of converting Stock Units into cash may include
(without limitation) a method based on the average Fair Market Value of Shares over a series of trading days. Vested Stock Units may be settled in a lump sum or in installments. The distribution may occur or commence when all vesting conditions
applicable to the Stock Units have been satisfied or have lapsed, or it may be deferred to any later date. The amount of a deferred distribution may be increased by an interest factor or by dividend equivalents. Until an Award of Stock Units is
settled, the number of such Stock Units shall be subject to adjustment pursuant to Section 11. 
 (f
) Death of Recipient. Any Stock Units Award that becomes payable after the recipient’s death shall be distributed to the recipient’s beneficiary or beneficiaries. Each recipient of a Stock Units Award
under the Plan shall designate one or more beneficiaries for this purpose by filing the prescribed form with the Company. A beneficiary designation may be changed by filing the prescribed form with the Company at any time before the Award
recipient’s death. If no beneficiary was designated or if no designated beneficiary survives the Award recipient, then any Stock Units Award that becomes payable after the recipient’s death shall be distributed to the recipient’s
estate. 
 
(g) Creditors’ Rights. A holder of Stock Units shall have no rights other than those of a general creditor of the Company. Stock Units represent an unfunded and unsecured obligation of the Company, subject
to the terms and conditions of the applicable Stock Unit Agreement. 
 
SECTION 11. ADJUSTMENT OF SHARES 
 (
a) Adjustments. In the event of a subdivision of the outstanding Stock, a declaration of a dividend payable in Shares, a declaration of a dividend payable in a form other than Shares in an amount that has a
material effect on the price of Shares, a combination or consolidation of the outstanding Stock (by reclassification or otherwise) into a lesser number of Shares, a recapitalization, a spin-off or a similar occurrence, the Committee shall make such
adjustments as it, in its sole discretion, deems appropriate in one or more of: 
 (i) The number of Options, SARs, Restricted
Shares and Stock Units available for future Awards under Section 5; 
 (ii) The limitations set forth in Sections 5(a)
and (b); 
 (iii) The number of NSOs to be granted to Outside Directors under Section 4(b); 
 (iv) The number of Shares covered by each outstanding Option and SAR; 
 (v) The Exercise Price under each outstanding Option and SAR; or 
 (vi) The number of Stock Units included in any prior Award which has not yet been settled. 
  
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 Except as provided in this Section 11, a Participant shall have no rights by reason of any issue by the Company of
stock of any class or securities convertible into stock of any class, any subdivision or consolidation of shares of stock of any class, the payment of any stock dividend or any other increase or decrease in the number of shares of stock of any
class. 
 
(b) Dissolution or Liquidation. To the extent not previously exercised or settled, Options, SARs and Stock Units shall terminate immediately prior to the dissolution or liquidation of the Company.

 
(c) Reorganizations. In the event that the Company is a party to a merger or other reorganization, outstanding Awards shall be subject to the agreement of merger or reorganization. Such agreement shall provide
for: 
 (i) The continuation of the outstanding Awards by the Company, if the Company is a surviving corporation; 

(ii) The assumption of the outstanding Awards by the surviving corporation or its parent or subsidiary; 
 (iii) The substitution by the surviving corporation or its parent or subsidiary of its own awards for the outstanding Awards; 

(iv) Full exercisability or vesting and accelerated expiration of the outstanding Awards; or 
 (v) Settlement of the full value of the outstanding Awards in cash or cash equivalents followed by cancellation of such Awards.

 (d
) Reservation of Rights. Except as provided in this Section 11, an Optionee or Offeree shall have no rights by reason of any subdivision or consolidation of shares of stock of any class, the payment of any
dividend or any other increase or decrease in the number of shares of stock of any class. Any issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by
reason thereof shall be made with respect to, the number or Exercise Price of Shares subject to an Option. The grant of an Option pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments,
reclassifications, reorganizations or changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business or assets. 
 
SECTION 12. DEFERRAL OF AWARDS 
 The Committee (in its sole discretion) may permit or require a
Participant to: 
 Have cash that otherwise would be paid to such Participant as a result of the exercise of a SAR or the settlement of Stock
Units credited to a deferred compensation account established for such Participant by the Committee as an entry on the Company’s books; 
  
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 Have Shares that otherwise would be delivered to such Participant as a result of the exercise of an
Option or SAR converted into an equal number of Stock Units; or 
 Have Shares that otherwise would be delivered to such Participant as a
result of the exercise of an Option or SAR or the settlement of Stock Units converted into amounts credited to a deferred compensation account established for such Participant by the Committee as an entry on the Company’s books. Such amounts
shall be determined by reference to the Fair Market Value of such Shares as of the date when they otherwise would have been delivered to such Participant. 
 A deferred compensation account established under this Section 12 may be credited with interest or other forms of investment return, as determined by the Committee. A Participant for whom such an account is
established shall have no rights other than those of a general creditor of the Company. Such an account shall represent an unfunded and unsecured obligation of the Company and shall be subject to the terms and conditions of the applicable agreement
between such Participant and the Company. If the deferral or conversion of Awards is permitted or required, the Committee (in its sole discretion) may establish rules, procedures and forms pertaining to such Awards, including (without limitation)
the settlement of deferred compensation accounts established under this Section 12. 
 
SECTION 13. AWARDS UNDER OTHER PLANS 
 The Company may grant awards under other plans or programs. Such
awards may be settled in the form of Shares issued under this Plan. Such Shares shall be treated for all purposes under the Plan like Shares issued in settlement of Stock Units and shall, when issued, reduce the number of Shares available under
Section 5. 
 
SECTION 14. PAYMENT OF DIRECTOR’S FEES IN SECURITIES 
 
(a) Effective Date. No provision of this Section 14 shall be effective unless and until the Board has determined to implement such provision. 
 
(b) Elections to Receive NSOs, Restricted Shares or Stock Units. An Outside Director may elect to receive his or her annual retainer payments and/or meeting fees from the Company in the form of cash, NSOs,
Restricted Shares or Stock Units, or a combination thereof, as determined by the Board. Such NSOs, Restricted Shares and Stock Units shall be issued under the Plan. An election under this Section 14 shall be filed with the Company on the
prescribed form. 
 
(c) Number and Terms of NSOs, Restricted Shares or Stock Units. The number of NSOs, Restricted Shares or Stock Units to be granted to Outside Directors in lieu of annual retainers and meeting fees that would
otherwise be paid in cash shall be calculated in a manner determined by the Board. The terms of such NSOs, Restricted Shares or Stock Units shall also be determined by the Board. 
  
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SECTION 15. LEGAL AND REGULATORY REQUIREMENTS. 
 Shares shall not be issued under the Plan unless the
issuance and delivery of such Shares complies with (or is exempt from) all applicable requirements of law, including (without limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated thereunder, state securities laws
and regulations and the regulations of any stock exchange on which the Company’s securities may then be listed, and the Company has obtained the approval or favorable ruling from any governmental agency which the Company determines is necessary
or advisable. 
 
SECTION 16. WITHHOLDING TAXES. 
 
(a) General. To the extent required by applicable federal, state, local or foreign law, a Participant or his or her successor shall make arrangements satisfactory to the Company for the satisfaction of any
withholding tax obligations that arise in connection with the Plan. The Company shall not be required to issue any Shares or make any cash payment under the Plan until such obligations are satisfied. 
 
(b) Share Withholding. The Committee may permit a Participant to satisfy all or part of his or her withholding or income tax obligations by having the Company withhold all or a portion of any Shares that
otherwise would be issued to him or her or by surrendering all or a portion of any Shares that he or she previously acquired. Such Shares shall be valued at their Fair Market Value on the date when taxes otherwise would be withheld in cash. In no
event may a Participant have Shares withheld that would otherwise be issued to him or her in excess of the number necessary to satisfy the legally required minimum tax withholding. 
 
SECTION 17. LIMITATION ON PARACHUTE PAYMENTS. 
 
(a) Scope of Limitation. This Section 17 shall apply to an Award only if the independent auditors most recently selected by the Board (the “Auditors”) determine that the after-tax value of such Award to
the Optionee or Offeree, taking into account the effect of all federal, state and local income taxes, employment taxes and excise taxes applicable to the Optionee or Offeree (including the excise tax under section 4999 of the Code), will be greater
after the application of this Section 17 than it was before application of this Section 17. 
 
(b) Basic Rule. In the event that the Auditors determine that any payment or transfer by the Company under the Plan to or for the benefit of a Participant (a “Payment”) would be nondeductible by the
Company for federal income tax purposes because of the provisions concerning “excess parachute payments” in Section 280G of the Code, then the aggregate present value of all Payments shall be reduced (but not below zero) to the Reduced
Amount. For purposes of this Section 17, the “Reduced Amount” shall be the amount, expressed as a present value, which maximizes the aggregate present value of the Payments without causing any Payment to be nondeductible by the Company
because of Section 280G of the Code. 
 
(c) Reduction of Payments. If the Auditors determine that any Payment would be nondeductible by the Company because of Section 280G of the Code, then the Company shall 
  
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promptly give the Participant notice to that effect and a copy of the detailed calculation thereof and of the Reduced Amount, and the Participant may then
elect, in his or her sole discretion, which and how much of the Payments shall be eliminated or reduced (as long as after such election the aggregate present value of the Payments equals the Reduced Amount) and shall advise the Company in writing of
his or her election within 10 days of receipt of notice. If no such election is made by the Participant within such 10-day period, then the Company may elect which and how much of the Payments shall be eliminated or reduced (as long as after such
election the aggregate present value of the Payments equals the Reduced Amount) and shall notify the Participant promptly of such election. For purposes of this Section 17, present value shall be determined in accordance with
Section 280G(d)(4) of the Code. All determinations made by the Auditors under this Section 17 shall be binding upon the Company and the Participant and shall be made within 60 days of the date when a Payment becomes payable or
transferable. As promptly as practicable following such determination and the elections hereunder, the Company shall pay or transfer to or for the benefit of the Participant such amounts as are then due to him or her under the Plan and shall
promptly pay or transfer to or for the benefit of the Participant in the future such amounts as become due to him or her under the Plan. 
 (d)
 Related Corporations. For purposes of this Section 17, the term “Company” shall include affiliated corporations to the extent determined by the Auditors in accordance with Section 280G(d)(5)
of the Code. 
 SECTION
 18. NO EMPLOYMENT RIGHTS 
 No provision of the Plan, nor any right or Option granted under the Plan,
shall be construed to give any person any right to become, to be treated as, or to remain an Employee. The Company and its Subsidiaries reserve the right to terminate any person’s Service at any time and for any reason, with or without notice.

 
SECTION 19. DURATION AND AMENDMENTS 
 (a)
Term of the Plan. The Plan, as set forth herein, shall terminate automatically on March 8, 2014 and may be terminated on any earlier date pursuant to Subsection (b) below. 
 (b)
 Right to Amend or Terminate the Plan. The Board of Directors may amend the Plan at any time and from time to time. Rights and obligations under any Option granted before amendment of the Plan shall not be
materially impaired by such amendment, except with consent of the person to whom the Option was granted. An amendment of the Plan shall be subject to the approval of the Company’s stockholders only to the extent required by applicable laws,
regulations or rules. 
 (c)
 Effect of Amendment or Termination. No Shares shall be issued or sold under the Plan after the termination thereof, except upon exercise of an Option granted prior to such termination. The termination of the
Plan, or any amendment thereof, shall not affect any Share previously issued or any Option previously granted under the Plan. 
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 SECTION 20. EXECUTION 
 To record the amendment of the Plan by the Compensation Committee of the Board of Directors on January 18, 2006, the Company has caused its authorized officer to execute the same. 
  

	
	 SIRF TECHNOLOGY HOLDINGS, INC.

	
	BY:                                   
                                        
                    
	Name                                      
                                        
             
	Title                                     
                                        
                 

  
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 21Separation and Consulting Agreement

 Exhibit 10.34 
 Kosan Biosciences Incorporated 
 3832 Bay Center Place 
 Hayward, CA 94545 
 February 13, 2006 
 VIA HAND DELIVERY 
 Daniel V. Santi, M.D., Ph.D. 
 Kosan Biosciences Incorporated 
 3832 Bay Center Place 
 Hayward, CA 94545 
  

	Re:	Separation and Consulting Agreement 

 Dear Dan: 
 As discussed, this letter sets forth the substance of the separation and consulting agreement (the “Agreement”) that Kosan
Biosciences, Inc. (the “Company”) is offering to you to aid in your employment transition. 
 1. Resignation of Employment and
Chairman of Board Positions. Pursuant to the signed resignation letter dated and effective as of February 13, 2006 (the “Resignation Date”), you resigned from your position of Chief Executive Officer (“CEO”) of the
Company, and from any other employment or officer positions with the Company and all of its affiliated entities (the “Affiliates”), and as Chairman of the Company’s Board of Directors (the “Board”). In addition, pursuant to
the signed resignation letter dated and effective as of February 22, 2006, you resigned as a member of the Board. Your signed resignation letters are attached hereto as Exhibit A. 
 2. Final Pay. The Company will pay you all accrued salary and all accrued and unused vacation (if any) earned by you through the Resignation Date,
less applicable withholdings and deductions, in accordance with applicable law. 
 3. Severance Benefits. 
 (a) Severance Pay. Provided that you sign this Agreement, return it to the Company and allow it to become effective, the Company will provide you a
severance payment of $690,605.70 (the “Severance”). The Severance will be subject to applicable withholdings and deductions and will be paid within ten (10) business days after the Effective Date of this Agreement (defined in
Section 19 (ADEA Waiver)). 
 (b) Benefits Payments. Your group health insurance coverage will terminate on the Resignation Date.
To the extent provided by the federal COBRA law or applicable state insurance laws (collectively, “COBRA”), and by the Company’s current group health insurance policies, you then will be eligible to continue your group health
insurance benefits at your own 

 
expense. Later, you may be able to convert to an individual policy through the provider of the Company’s health insurance, if you wish. You will be
provided with a separate notice more specifically describing your rights and obligations to continuing health insurance coverage under applicable state and/or federal insurance laws and the terms of the applicable health insurance plans on or after
the Resignation Date. If you enter into this Agreement and abide by the terms set forth herein, and you timely elect continued health insurance coverage, the Company agrees, through the earlier of August 31, 2007 or the date on which you become
eligible for insurance coverage with another employer, to pay your health insurance premiums sufficient to continue your coverage at the same level in effect as of the Resignation Date (including dependent coverage, if any) (the “Benefits
Payments”) to the extent such coverage is available. You agree to notify the Company in writing immediately upon commencing other employment that provides health insurance benefits. 
 (c) Deferred Compensation. In the event that the Company determines that any payments hereunder (including but not limited to payments pursuant to
Sections 3(a) (Severance Pay)), or continued insurance coverage or Benefits Payments provided under Section 3(b) (Benefits Payments), fail to satisfy the distribution requirement of Section 409A(a)(2)(A) of the Internal Revenue Code (the
“Code”) as a result of Section 409A(a)(2)(B)(i) of the Code, then the payment of such benefits shall not be made pursuant to the payment schedules provided herein and instead the payment of such benefits shall be delayed or otherwise
restructured to the minimum extent necessary so that such benefits are not subject to the provisions of Section 409A(a)(1) of the Code. 
 4. Final Expense Reimbursements. No later than thirty (30) days after the Resignation Date, you must submit your final documented expense reimbursement statement reflecting all business expenses you incurred through the
Resignation Date for which you seek reimbursement. The Company will reimburse you for such expenses pursuant to its regular business practice. 
 5. Return of Company Property. On the Resignation Date, you shall return to the Company all documents (and all copies thereof) and other property belonging to the Company that you have in your possession or control, with the
exception of any property that the Company authorizes you in writing to retain in connection with your consulting Services hereunder (defined in Section 6(b) (Consulting Duties)), which property shall be returned promptly upon the request of
the Company. The documents and property to be returned by you include, but are not limited to, all files, correspondence, email, memoranda, notes, notebooks, drawings, records, plans, forecasts, reports, studies, analyses, compilations of data,
proposals, agreements, financial information, research and development information, sales and marketing information, operational and personnel information, specifications, code, software, databases, computer-recorded information, tangible property
and equipment (including, but not limited to, computers, facsimile machines, mobile telephones, and servers), credit cards, entry cards, identification badges and keys; and any materials of any kind which contain or embody any proprietary or
confidential information of the Company or any of its Affiliates (and all reproductions thereof in whole or in part). You agree to make a diligent search to locate any such documents, property and information. You further agree, on a mutually
agreeable day and time, to provide the Company’s representative access to any personally owned computer, server, or e-mail system that you have used to receive, store, review, prepare or transmit any Company confidential or 

  

 2 

 
proprietary data, materials or information, so that the Company can make a computer-useable copy of all such information and the Company can also permanently
delete and expunge such confidential or proprietary information from those systems. Your eligibility to receive Severance and Benefits Payments is conditioned upon your compliance with the provisions set forth in this paragraph. 
 6. Consulting Relationship. If you sign this Agreement, return it to the Company, and allow it to become effective, then the Company will engage
you as a consultant under the terms and conditions specified below (the “Consulting Relationship”). 
 (a) Consulting Period.
The Company will engage you as a consultant for the period (the “Consulting Period”) commencing on the day immediately following the Resignation Date and continuing until the earlier of: (i) the date your consulting relationship is
terminated by the Company due to material breach of this Agreement or your Proprietary Information Obligations (defined in Section 8 (Proprietary Information Obligations)); (ii) the date on which the Company terminates the consulting
relationship at its discretion, which may not occur prior to February 13, 2008; (iii) the date on which you terminate the consulting relationship at your discretion; (iv) the date that you and the Company mutually agree to terminate
the consulting relationship; or (v) the date that you revoke this Agreement pursuant to Section 19 hereof. 
 (b) Consulting
Duties. During the Consulting Period, you agree to provide at least eight (8) hours per month of consulting services (the “Services”), to and at the request of the CEO or any Company officer or vice president, or the Board, in any
area within your expertise. You shall exercise the highest degree of professionalism and utilize your expertise and creative talents in performing the Services. The Company shall not require you to perform the Services in a manner that would
unreasonably interfere with your performance of your other professional duties. 
 (c) Consulting Fees. During the Consulting Period,
the Company will pay you consulting fees at a rate of $325.00 per hour, prorated for any partial hours of Services (which shall include consulting discussions, associated research, telephone time, and necessary travel time) (the “Consulting
Fees”). You must submit monthly invoices to the Company for the Consulting Fees on or shortly after the end of the month, providing documentation to support the amount of Consulting Fees billed, and the Company will provide payment within
thirty (30) days after receipt of the invoice. Because you will perform the Services as an independent contractor, the Company will not withhold from the Consulting Fees any amount for taxes, social security or other payroll deductions. The
Company will report your Consulting Fees on an IRS Form 1099. You acknowledge that you will be entirely responsible for payment of any taxes which may be due with regard to the Consulting Fees or continued vesting of the Equity Awards (discussed
below), and you hereby indemnify and save harmless the Company from any liability for any taxes, penalties or interest that may be assessed by any taxing authority with respect thereto, with the exception of the employer’s share of social
security, if any. 
 (d) Equity Award Vesting. To the extent consistent with and subject to the terms of your stock option grants
provided to you in connection with your employment (collectively, the “Equity Awards”), and the terms of the applicable equity incentive plans, your Equity Awards will continue to vest during the Consulting Period. You will be able to
exercise 

  

 3 

 
any vested shares subject to the Equity Awards for thirty (30) days after the termination of the Consulting Period in accordance with the terms of your
Equity Awards and the applicable equity incentive plans, or, if the Consulting Period terminates due to your death or Disability (as defined in the applicable equity incentive plans), you (or your estate, as applicable) will be able to exercise any
vested shares subject to the Equity Awards within the applicable time periods specified in your Equity Awards and the governing equity incentive plans. 
 (e) Protection of Information. You agree that, during the Consulting Period and thereafter, you will not use or disclose any confidential or proprietary information or materials of the Company that you obtain
or develop in the course of performing the Services, except with permission of a duly-authorized Company officer. Any and all work product you create in the course of performing the Services will be the sole and exclusive property of the Company.
You hereby assign to the Company all right, title, and interest in all inventions, techniques, processes, materials, and other intellectual property developed in the course of performing the Services. 
 (f) Expenses. The Company will reimburse you for reasonable, documented business expenses incurred in performing the Services pursuant to its
regular business practice, provided that these expenses have been pre-approved by the Company in writing. 
 (g) Other Work
Activities. During the Consulting Period, you will not carry on any business or activity (whether directly or indirectly, as a partner, stockholder, principal, agent, director, affiliate, employee or consultant) that is competitive in any manner
with the business of the Company in developing, licensing, marketing or otherwise exploiting its work on: (i) Hsp90 inhibitors, (ii) tubulin inhibitors, (iii) agonists of the motilin receptor, or (iv) nuclear export inhibitors,
nor, except as otherwise specifically provided below, engage in other activities that conflict with your obligations to the Company. Notwithstanding the above restrictions in this Section 6(g), you shall not be prohibited from being a passive
shareholder of up to 1% of the public stock of an entity that competes with the Company in any of the above listed areas, and you are not prohibited from engaging in teaching or research activities in any of the above listed areas so long as such
teaching or research activities are in connection with your engagement by or services to a college or university. During the Consulting Period, you may engage in any form of employment, consulting, research, teaching, business activity or
combination of any of the same which is not prohibited by this paragraph, provided that it shall not unreasonably interfere with your ability to perform the Services for the Company. 
 7. Other Compensation or Benefits. You acknowledge that, except as expressly provided in this Agreement, you have not earned and will not receive
from the Company any additional compensation (including base salary, bonus, incentive compensation, or equity), severance, or benefits on or after the Resignation Date, with the exception of any vested right you may have under the express terms of a
written ERISA-qualified benefit plan (e.g., 401(k) account) or a vested Equity Award. 
 8. Proprietary Information Obligations. You
hereby acknowledge your continuing obligations (the “Proprietary Information Obligations”) as provided in your Employee Proprietary Information and Invention Assignment Agreement signed December 16, 1998 (the “Proprietary
Information Agreement”) (attached hereto as Exhibit B). 
  

 4 

 9. Disclosure. You hereby acknowledge and agree that this Agreement and a description of the terms
set forth herein will be filed by the Company with the Securities and Exchange Commission pursuant to its obligations as a reporting company under the Securities Exchange Act of 1934, as amended and the rules and regulations promulgated thereunder
(the “Exchange Act”), and consequently shall be publicly available. 
 10. Nondisparagement. You agree not to disparage the
Company and its officers, directors, employees, shareholders and agents, in any manner likely to be harmful to them or their business, business reputation or personal reputation; and the Company (through its executive officers and directors) agrees
not to disparage you in any manner likely to be harmful to you or your business, business reputation or personal reputation. Notwithstanding anything else in this paragraph, both the Company and you may respond accurately and fully to any inquiry or
request for information if required by legal process. 
 11. Job Reference Inquiries. The Company agrees to refer requests for job
references concerning you from prospective employers to Jean Deleage, Margaret (Peg) Horn, Pieter Timmermans, or any other individual you propose who is acceptable to the Company. 
 12. Nonsolicitation. During the later of either the Consulting Period or two (2) years after the Resignation Date, except with the
Company’s advance written consent, you will not, directly or indirectly, recruit, solicit, entice, induce or encourage any employee, independent contractor or consultant of the Company to terminate a relationship with the Company in order to
become an employee, independent contractor or consultant for any other person or entity. By way of example, but not limitation, during the above-referenced timeframe, except with the Company’s advance written consent, you are prohibited from
participating in any manner in the recruitment, targeting or hiring process with respect to any employee, independent contractor or consultant of the Company, and you are prohibited from providing any entity with any information related to the
selection, recruitment, or hiring of any such individual. 
 13. No Admissions. The promises and payments in consideration of this
Agreement shall not be construed to be an admission of any liability or obligation by either party to the other party, and neither party makes any such admission. 
 14. No Voluntary Adverse Action. You agree that you will not voluntarily assist any person in preparing, bringing, or pursuing any litigation, arbitration, administrative claim or other formal proceeding
against the Company, its parents, subsidiaries, Affiliates, distributors, officers, directors, employees or agents, unless pursuant to subpoena or other compulsion of law. 
 15. Cooperation. You agree to cooperate fully with the Company in connection with its actual or contemplated defense, prosecution, or
investigation of any claims, demands, audits, government or regulatory inquiries, or other matters arising from events, acts, or failures to act that occurred during the time period in which you were employed by the Company. Such cooperation
includes, without limitation, making yourself available upon reasonable notice, without subpoena, to provide accurate and complete information to the Company and making yourself available for truthful and accurate interviews, depositions, and trial
testimony. The Company will reimburse you for reasonable out-of-pocket expenses you incur in connection with any such cooperation (excluding foregone wages, salary, or other compensation), and will make reasonable efforts to accommodate your
scheduling needs. 
  

 5 

 16. Acts Necessary To Effect This Agreement. You and the Company agree to timely execute any
instruments or perform any other acts that are or may be necessary or appropriate to effect and carry out the transactions contemplated by this Agreement. 
 17. Common Stock of the Company. You agree that, for the longer of either (a) twelve (12) months after the Separation Date, or (b) the date upon which your total beneficial ownership of the
Company’s common stock constitutes less than ten percent (10%) of the outstanding common stock of the Company, any shares of the Company’s common stock beneficially owned by you will be subject to lock-up restrictions with respect to
the sale, transfer, assignment or other disposal of shares of the Company’s common stock to the same extent as those to which shares owned by the directors and officers of the Company are subject in connection with any public or other offering
of the Company’s common stock, and you hereby agree to promptly execute any and all agreements to that effect with the underwriter(s) or placement agent(s) of any proposed public or other offering, such agreement to be in substantially the same
form as that signed by the Company’s directors and officers, provided that (i) no such lock-up shall exceed in duration ninety (90) days after the date of execution of an underwriting or other agreement in connection with the
sale of shares in a public or other offering, nor shall your shares of the Company’s common stock be subject to more than one lock-up in any period of one hundred eighty (180) consecutive days and (ii) no such lock-up shall
restrict the sale of shares subject to a plan adopted under Rule 10b5-1 of the Exchange Act that is in effect prior to the date that any such lock-up agreement is requested. The Company agrees to provide you with advance notice of any such
lock-up restrictions to the extent such advance notice is practicable, and the Company agrees to process your requests for 10b5-1 applications promptly before the lock-up period begins to the extent practicable. You agree that you will not sell or
otherwise transfer any shares of the Company’s common stock beneficially owned by you to a person or entity who or which is not a member of your family or controlled by you or a member of your family, including pursuant to a plan
adopted under Rule 10b5-1 of the Exchange Act, prior to April 14, 2006; provided, however, that you may adopt a plan under Rule 10b5-1 of the Exchange Act prior to such date so long as no sales of shares are made thereunder prior to
April 14, 2006. For the longer of either (a) twelve (12) months after the Separation Date, or (b) the date upon which your total beneficial ownership of the Company’s common stock constitutes less than ten percent
(10%) of the outstanding common stock of the Company, in the event that you determine to sell or otherwise transfer, or adopt a plan under Rule 10b5-1 of the Exchange Act to sell or otherwise transfer, more than 10,000 shares of the
Company’s common stock beneficially owned by you in a single transaction or series of related transactions to a person or entity who or which is not a member of your family or controlled by you or a member of your family, you shall advise the
Company at least five (5) business days prior to any such sale or other transfer or the adoption of any such plan and, if requested by the Company, consult with the Company in connection with the disposition of such shares. You acknowledge that
you have continuing obligations, and are subject to continuing restrictions, under the federal securities laws, including Section 16 of the Exchange Act and Rule 144 under the Securities Act of 1933, as amended, and that you should consult with
your counsel in connection with any proposed transaction involving the Company’s common stock. Until such time as you first cease to be a “Section 16 person” (or such later date as may be subsequently agreed with the 

  

 6 

 
Company), the Company shall continue to provide to you the same assistance as it has heretofore provided you in complying with your obligations under
Section 16 of the Exchange Act; provided, however, that the Company shall have no obligations to make any filings on your behalf within less than 36 hours of notice of a transaction requiring any such filing. 
 18. Santi’s Release. In exchange for the consideration under this Agreement to which you would not otherwise be entitled, except as provided
in this Agreement, you hereby generally and completely release the Company and its directors, officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers, Affiliates, and assigns
from any and all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions occurring at any time prior to or at the time you sign this Agreement. This general
release includes, but is not limited to: (a) all claims arising out of or in any way related to your employment with the Company or the termination of that employment; (b) all claims related to your compensation or benefits from the
Company, including salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership or equity interests in the Company; (c) all claims for breach of contract,
wrongful termination, and breach of the implied covenant of good faith and fair dealing, including, but not limited to, claims based on or arising from the Employment Agreement between you and the Company dated November 1, 1998 (attached as
Exhibit C); (d) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (e) all federal, state, and local statutory claims, including claims for discrimination,
harassment, retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act (as amended)
(“ADEA”), the federal Family and Medical Leave Act, the California Family Rights Act, and the California Fair Employment and Housing Act (as amended). Notwithstanding the foregoing, you are not releasing the Company hereby from any
obligation to indemnify you pursuant to the articles and bylaws of the Company, the Indemnification Agreement dated January 12, 1995 (attached as Exhibit D), and applicable law. You represent that you have no lawsuits, claims or actions
pending in your name, or on behalf of any other person or entity, against the Company or any other person or entity subject to the release granted in this paragraph. 
 19. ADEA Waiver. You acknowledge that you are knowingly and voluntarily waiving and releasing any rights you may have under the ADEA, and that the consideration given for the waiver and release in the preceding
paragraph hereof is in addition to anything of value to which you are already entitled. You further acknowledge that you have been advised, as required by the ADEA, that: (a) your waiver and release do not apply to any rights or claims that may
arise after the date that you sign this Agreement; (b) you should consult with an attorney prior to signing this Agreement (although you may choose voluntarily not to do so); (c) you have at least twenty-one (21) days from the date
you receive this Agreement to consider this Agreement (although you may choose voluntarily to sign it earlier); (d) you have seven (7) days following the date you sign this Agreement to revoke the Agreement by providing written notice of
your revocation to the Board; and (e) this Agreement will not be effective until the date upon which the revocation period has expired, which will be the eighth day after the date that this Agreement is signed by you (the “Effective
Date”). Notwithstanding the preceding, the Consulting Relationship shall be effective as of the day immediately following the Resignation 

  

 7 

 
Date, and your revocation of this Agreement, if it occurs, will result in immediate termination of the Consulting Relationship. Additionally, since you asked
for, and received, material changes in this Agreement in your favor, you agree to waive an additional twenty-one day period in which to consider this Agreement, you agree that the required twenty-one (21)-day consideration period for this Agreement
will be deemed to have started on February 13, 2006 (the date that you received the Company’s original offer), and you and the Company agree that you will have until March 20, 2006 in which to consider this Agreement. 
 20. Company’s Release. Except as provided in this Agreement, the Company hereby generally and completely releases you and your agents,
successors, assigns, attorneys and affiliates, from any and all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions, within the course and scope of your
employment, occurring at any time prior to or at the time the Company signs this Agreement. Notwithstanding the foregoing, the Company is not releasing you hereby from any claims, liabilities and obligations arising under or based on:
(a) criminal or fraudulent acts, conduct or omissions; or (b) your obligations to protect the Company’s proprietary information, including without limitation any claims arising from your obligations under the Proprietary Information
Agreement or under the California Uniform Trade Secrets Act. The Company represents that it has no lawsuits, claims or actions pending in its name, or on behalf of any other person or entity, against you or any other person or entity subject to the
release granted in this paragraph. 
 21. Section 1542 Waiver. In giving the releases set forth in this Agreement, which include
claims which may be unknown to you and the Company at present, the parties acknowledge that they have read and understand Section 1542 of the California Civil Code which reads as follows: “A general release does not extend to claims
which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.” You and the Company hereby expressly waive and
relinquish all rights and benefits under that section and any law or legal principle of similar effect in any jurisdiction with respect to the releases of claims herein, including but not limited to the releases of unknown and unsuspected claims.

 22. Dispute Resolution. To ensure rapid and economical resolution of any disputes regarding this Agreement, the parties hereby
agree that any and all claims, disputes or controversies of any nature whatsoever arising out of, or relating to, this Agreement, or its interpretation, enforcement, breach, performance or execution, your employment with the Company, or the
termination of such employment, shall be resolved, to the fullest extent permitted by law, by final, binding and confidential arbitration in San Francisco, California conducted before a single arbitrator by JAMS, Inc. (“JAMS”) or its
successor, under the then applicable JAMS arbitration rules. The parties each acknowledge that by agreeing to this arbitration procedure, they waive the right to resolve any such dispute, claim or demand through a trial by jury or judge or by
administrative proceeding. You will have the right to be represented by legal counsel at any arbitration proceeding. The arbitrator shall: (a) have the authority to compel adequate discovery for the resolution of the dispute and to award
such relief as would otherwise be available under applicable law in a court proceeding; and (b) issue a written statement signed by the arbitrator regarding the disposition of each claim and the relief, if any, awarded as to each claim, the
reasons for the award, and the arbitrator’s essential findings 

  

 8 

 
and conclusions on which the award is based. The arbitrator, and not a court, shall also be authorized to determine whether the provisions of this paragraph
apply to a dispute, controversy, or claim sought to be resolved in accordance with these arbitration procedures. Nothing in this Agreement is intended to prevent either you or the Company from obtaining injunctive relief in court to prevent
irreparable harm pending the conclusion of any arbitration. 
 23. Miscellaneous. This Agreement, including Exhibits A, B, C, and E,
constitutes the complete, final and exclusive embodiment of the entire agreement between you and the Company with regard to the subject matter hereof. It is entered into without reliance on any promise or representation, written or oral, other than
those expressly contained herein, and it supersedes any other agreements, promises, warranties or representations concerning its subject matter. This Agreement may not be modified or amended except in a writing signed by both you and a duly
authorized officer of the Company. This Agreement will bind the heirs, personal representatives, successors and assigns of both you and the Company, and inure to the benefit of both you and the Company, their heirs, successors and assigns. If any
provision of this Agreement is determined to be invalid or unenforceable, in whole or in part, this determination shall not affect any other provision of this Agreement and the provision in question shall be modified so as to be rendered enforceable
in a manner consistent with the intent of the parties insofar as possible under applicable law. This Agreement shall be construed and enforced in accordance with the laws of the State of California without regard to conflicts of law principles. Any
ambiguity in this Agreement shall not be construed against either party as the drafter. Any waiver of a breach of this Agreement, or rights hereunder, shall be in writing and shall not be deemed to be a waiver of any successive breach or rights
hereunder. This Agreement may be executed in counterparts which shall be deemed to be part of one original, and facsimile signatures shall be equivalent to original signatures. 
 If this Agreement is acceptable to you, please sign below on or before March 20, 2006 and return the original to me. If I do not receive the fully executed Agreement from you by such date, the Company’s
offer contained herein will expire. 
  

 9 

 We look forward to continuing to work with you. 
 Sincerely, 
  

			
	KOSAN BIOSCIENCES INCORPORATED
		
	By:	 	 /s/ Peter Davis

		 	Peter Davis
		 	Lead Independent Director
		 	Board of Directors,
		 	on behalf of the Board of Directors

 Exhibit A – Signed Resignation Letters 
 Exhibit B – Employee Proprietary Information and Invention Assignment Agreement 
 Exhibit C – Employment Agreement 
 Exhibit D – Indemnification Agreement 
  

			
	UNDERSTOOD AND AGREED:	  	
		
	 /s/ Daniel V. Santi
	  	 March 20, 2006

	Daniel V. Santi, M.D., Ph.D.	  	Date

  

 10 

 EXHIBIT A 
 SIGNED RESIGNATION LETTERS 
  

 11 

 February 13, 2006 
 Board of Directors 
 Kosan Biosciences Incorporated 
 3832 Bay Center Place 
 Hayward, CA 94545 
 Re: Resignation of CEO
and Chairman of Board Positions 
 To the Board of Directors of Kosan Biosciences, Inc.: 
 Effective immediately, I hereby submit my resignation as Chief Executive Officer of Kosan Biosciences, Inc. (the “Company”), and I hereby resign from any other
employment or officer positions with the Company and all its affiliated entities, and as Chairman of the Company’s Board of Directors. I reserve any rights to severance benefits that I may have under the terms of my employment agreement dated
as of November 1, 1998. 
 I wish the best for the continued success of the Company. 
 Sincerely, 
  

	
	 /s/ Daniel V. Santi

	Daniel V. Santi, M.D., Ph.D.

 February 22, 2006 
 Peg Horn 
 Secretary, Kosan Board of Directors & Chief Counsel 
 Kosan Biosciences 
 3832 Bay Center Place 
 Hayward, CA 94545 
 Dear Peg, 
 I hereby resign as a member of the Kosan Biosciences, Inc. Board of Directors. 
  

	
	 /s/ Daniel V. Santi

	Daniel V. Santi

 cc: Suzanne Hooper 

 EXHIBIT B 
 EMPLOYEE PROPRIETARY INFORMATION AND INVENTION ASSIGNMENT AGREEMENT 
  

 12 

 KOSAN BIOSCIENCES INCORPORATED 
 EMPLOYEE PROPRIETARY INFORMATION AND 
 INVENTION ASSIGNMENT AGREEMENT 
 As an employee of Kosan Biosciences Incorporated, a California corporation, its subsidiary or its affiliate (together, the “Company”), in
consideration of my employment with the Company as previously agree by me in my employment letter with the Company and inconsideration of the compensation now and hereafter paid to me, I agree to the following: 
 1. Maintaining Confidential Information 
 a. Company Information. I agree at all times during the term of my employment and thereafter to hold in strictest confidence, and not to use, except for the benefit of the Company, or to disclose to any person, firm or corporation
without written authorization of the Company, any trade secrets, confidential knowledge, data or other proprietary information relating to products, processes, know-how, designs, formulas, developmental or experimental work, computer programs, data
bases, other original works of authorship, customer lists, business plans, financial information or other subject matter pertaining to any business of the Company or any of its clients, consultants, or licensees. 
 b. Former Employer Information. I agree that I will not, during my employment with the Company, improperly use or disclose any proprietary
information or trade secrets of my former or concurrent employers or companies, or any other person, and that I will not bring onto the premises of the Company any unpublished document or any property belonging to my former or concurrent employers
or companies, or any other person, unless consented to in writing by said employers, companies, or other person. 
 c. Third-Party
Information. I recognize that the Company has received and in the future will receive from third parties their confidential or proprietary information subject to a duty on the Company’s part to maintain the confidentiality of such
information and to use it only for certain limited purposes. I agree that I owe the Company and such third parties, during the term of my employment and thereafter, a duty to hold all such confidential or proprietary information in the strictest
confidence and not to disclose it to any person, firm or corporation (except as necessary in carrying out my work for the Company consistent with the Company’s agreement with such third party) or to use it for the benefit of anyone other than
for the Company or such third party (consistent with the Company’s agreement with such third party) without the express written authorization of the Company. 
 2. Retaining and Assigning Inventions and Original Works 
 a. Inventions and Original Works
Retained by Me. I have listed in Section 7 hereof descriptions of any and all inventions, original works of authorship, developments, improvements, and trade secrets belonging to me which were made by me prior to my employment with the
Company, which relate to the Company’s proposed business and products, and which are not assigned to the Company (collectively, “Prior Inventions”). 
  

 - 1 - 

 b. Inventions and Original Works Assigned to the Company. I agree that I will promptly make full written
disclosure to the Company, will hold in trust for the sole right and benefit of the Company, and will assign to the Company all my right, title, and interest in and to any and all inventions, original works of authorship, developments, improvements
or trade secrets which I may solely or jointly conceive or develop or reduce to practice, or cause to be conceived or developed or reduced to practice, during the period of time I am in the employ of the Company (collectively, “Company
Inventions”). I recognize, however, that assignment to the Company under this provision of any invention is subject to Section 2870 of the California Labor Code, which reads as follows: 
 “(a) Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an
invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer’s equipment, supplies, facilities, or trade secret information except for those inventions
that either: 
 (1) Relate at the time of conception or reduction to practice of the invention to the employer’s business, or actual or
demonstrably anticipated research or development of the employer. 
 (2) Result from any work performed by the employee for the employer.

 (b) To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from
being required to be assigned under subdivision (a), the provision is against the public policy of this state and unenforceable.” 
 I
agree to grant the Company or its designees a royalty free, irrevocable, worldwide license (with rights to sublicense through multiple tiers of distribution) to practice all applicable patent, copyright and other intellectual property rights
relating to any Prior Inventions that I incorporate, or permit to be incorporated, in any Company Invention. Notwithstanding the foregoing, I agree that I will not incorporate, or permit to be incorporated, with Prior Invention in any Company
Invention without the Company’s prior written consent. 
 I acknowledge that all original works of authorship which are made by me
(solely or jointly with others) within the scope of my employment and which are protectable by copyright are “works made for hire,” as the term is defined in the United States Copyright Act (17 USCA, Section 101). 
 c. Maintenance of Records. I agree to keep and maintain adequate and current written records of all inventions and original works of authorship
made by me (solely or jointly with others) during the term of my employment with the Company. The 

  

 - 2 - 

 
records will be in the form of notes, sketches, drawings, and any other format that may be specified by the Company. The records will be available to and
remain the sole property of the Company at all times. 
 d. Inventions Assigned to the United States. I agree to assign to the United
States government all my right, title, and interest in and to any and all inventions, original works of authorship, developments, improvements or trade secrets whenever such full title is required to be in the United States by a contract between the
Company and the United states or any of its agencies. 
 e. Obtaining Letters Patent, Copyrights, and Mask Work Rights. I agree that
my obligation to assist the Company to obtain United States or foreign letters patent, copyrights, or mask work rights covering inventions, works of authorship, and mask works, respectively, assigned hereunder to the Company shall continue beyond
the termination of my employment, but the Company shall compensate me at a reasonable rate for time actually spent by me at the Company’s request on such assistance. If the Company is unable because of my mental or physical incapacity or for
any other reason to secure my signature to apply for or to pursue any application for any United States or foreign letters patent, copyrights, or mask work rights covering inventions or other rights assigned to the Company as above, then I hereby
irrevocably designate and appoint the Company and its duly authorized officers and agents as my agent and attorney in fact, to act for and in my behalf and stead to execute and file any such applications and to do all other lawfully permitted acts
to further the prosecution and issuance of letters patent, copyrights, and mask work rights with the same legal force and effect as if executed by me. I hereby waive and quitclaim to the Company any and all claims, of any nature whatsoever, which I
now or may hereafter have, of infringement of any patents, copyrights, or mask work rights resulting from any such application assigned hereunder to the Company. 
 f. Exception to Assignments. I understand that the provisions of this agreement requiring assignment to the Company do not apply to any invention which qualifies fully under the provisions of Section 2870
of the California Labor Code. I will advise the company promptly in writing of any inventions, original works of authorship, developments, improvements or trade secrets that I believe are exempt from assignment to the Company based upon the
application of Section 2870 of the California Labor Code; and I will at that time provide to the Company in writing all evidence necessary to substantiate that belief. I understand that the Company will keep in confidence and will not disclose
to third parties without my consent any confidential information disclosed in writing to the Company relating to inventions that qualify fully under the provisions of section 2870 of the California Labor Code. 
 3. Conflicting Employment. I agree that, during the term of my employment with the Company, I will not engage in any other employment, occupation,
consulting or other business activity directly related to the business in which the Company is now involved or becomes involved during the term of my employment, nor will I engage in any other activities that conflict with my obligations to the
Company. 
 4. Company Documents and Property. I agree that, at the time of leaving the employ of the Company, I will deliver to the
Company (and will not keep in my possession 

  

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or deliver to anyone else) any and all devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints,
sketches, materials, equipment, other documents or property, or reproductions of any aforementioned items belong to the Company, its successors or assigns. I further agree that any property situated on the Company’s premises and owned by the
Company, including desks, filing cabinets, or other storage or work areas, is subject to inspection by Company personnel at any time with or without notice. 
 5. Representations. I agree to execute any proper oath or verify any proper document required to carry out the terms of this agreement. I represent that my performance of all the terms of this agreement will
not breach any agreement to keep in confidence proprietary information acquired by me in confidence or in trust prior to my employment by the Company. I have not entered into, and I agree I will not enter into, any oral or written agreement in
conflict herewith. 
 6. General Provisions 
 a. Governing Law. This agreement will be governed by and construed in accordance with the laws of the State of California as such laws are applied to agreements entered into and to be performed entirely within
California by California residents. 
 b. Entire Agreement; Amendment. This agreement sets forth the entire agreement and
understanding between the Company and me relating to the subject matter herein and merges all prior discussions between us. No modification of or amendment to this agreement, nor any waiver of any rights under this agreement, will be effective
unless in writing signed by the party to be charged. Any subsequent change or changes in my duties, salary or compensation will not affect the validity or scope of this agreement. 
 c. Severability. If one or more of the provisions in this agreement are deemed void by law, then the remaining provisions will continue in full
force and effect. 
 d. Successors and Assigns. This agreement will be binding upon my heirs, executors, administrators and other
legal representatives and will be for the benefit of the Company, its successors, and its assigns. 
 e. Survival. The provisions of
this agreement shall survive the termination of my employment and the assignment of this agreement by the Company to any successor in interest or other assignee. This agreement is binding upon my heirs and legal representatives. 
 f. Employment. As used herein, my employment includes any time during which I may be retained by the Company as a consultant. I agree and
understand that nothing in this agreement shall confer any right with respect to continuation of employment by the Company, nor shall it interfere in any way with my right or the Company’s right to terminate my employment at any time, with or
without cause. 
  

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 g. No Solicitation. During the term of my employment with the Company and for a period of two
years thereafter, I will not solicit, encourage, or cause others to solicit or encourage any employees of the Company to terminate their employment with the Company. 
 h. Injunctive Relief. I agree that a breach of any of the representations, warranties or covenants contained in this agreement will result in irreparable and continuing damage to the Company for which there
will be no adequate remedy at law, and that consequently the Company will be entitled to injunctive relief and/or a decree for specific performance and such other relief as may be proper (including monetary damages if appropriate). 
 i. Waiver. The waiver by the Company of a breach of any provision of this agreement by me will not operate or be construed as a waiver of any
other or subsequent breach by me. 
 7. List of Inventions. Pursuant to Section 2(a) of this agreement, set forth below is a list
of my prior inventions and original works of authorship: 
  

					
	Title	 	Date	 	Description

  

 - 5 - 

 IF NO PRIOR INVENTIONS OR ORIGINAL WORKS OF AUTHORSHIP ARE LISTED IN THIS SECTION 7, I HEREBY AFFIRM THAT THERE ARE NO
SUCH INVENTIONS OR ORIGINAL WORKS OF AUTHORSHIP. 
  

			
	KOSAN BIOSCIENCES INCORPORATED
		
	By:	 	 /s/ Daniel V. Santi

		 	Daniel V. Santi, M.D., Ph.D.,
		 	Chief Executive Officer & President
	
	Dated: 12-16-98

 ACCEPTED AND AGREED: 
  

	
	Dan Santi
	
	 /s/ Daniel V. Santi

	Sign Name
	
	  

	Print Name
	
	Dated: 12-16-98

  

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 EXHIBIT C 
 EMPLOYMENT AGREEMENT 
  

 13 

 KOSAN BIOSCIENCES, INC. 
 EMPLOYMENT AGREEMENT 
 This Agreement is entered into by and between Kosan Biosciences, Inc., a California
corporation (the “Company”), and Daniel V. Santi (“Executive”), as of November 1, 1998. 
 WHEREAS, Executive is
currently employed as a professor with the University of California at San Francisco, (“UCSF”) and works as a consultant for the Company pursuant to the terms of the Amended and Restated Consulting Agreement by and between Executive and
the Company, dated March 29, 1996 (the “Consulting Agreement”); 
 WHEREAS, Executive shall take a leave of absence from UCSF
to become an employee of the Company; 
 WHEREAS, as of the date Executive receives a leave of absence from UCSF, the Company desires to
employ the Executive as the Chief Executive Officer and President of the Company, reporting to the Board of Directors of the Company (the “Board”); 
 WHEREAS, the parties desire and agree to enter into an employment relationship by means of this Agreement; and 
 NOW THEREFORE, in consideration of the promises and mutual covenants herein contained, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, it is mutually covenanted and agreed by and among
the parties as follows: 
 1. Duties and Scope of Employment. 
 (a) Position: Employment Commencement Date. As of the date Executive receives a leave of absence from UCSF that, at a minimum, exceeds nine
(9) months (“Leave of Absence”), the Executive shall be employed as the Chief Executive Officer and President of the Company reporting to the Board (“Commencement Date”). 
 (b) Obligations. Executive shall devote his full business efforts and time to the Company. As Chief Executive Officer and President of the
Company, Executive shall have the duties and responsibilities customarily associated with such positions, including senior management powers and responsibilities for the Company’s business and affairs. During the term of this Agreement,
Executive agrees not to actively engage in any other employment, occupation or consulting activity for any direct or indirect remuneration that creates an actual or potential conflict of interest with the Company without the prior approval of the
Board; provided, however, that Executive may engage in activities that do not materially interfere with his duties and obligations under this Agreement or create an actual or potential conflict of interest with the Company for up to four hours per
week. Executive shall report the nature and extent of such activities, if any, to the Board every six months. 
  

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 2. At-Will Employment. Executive and the Company understand and acknowledge that Executive’s
employment with the Company constitutes “at-will” employment. Executive and the Company acknowledge that this employment relationship may be terminated at any time, with or without cause or for any or no cause, at the option either of the
Company or Executive. 
 3. Compensation, Fringe Benefits and Stock Options. 
 (a) Base Salary. While employed by the Company pursuant to this Agreement, the Company shall pay the Executive as compensation for his services a
base salary at the annualized rate of $250,000 (the “Base Salary”). Such salary shall be paid periodically in accordance with normal Company payroll practices and subject to the usual, required withholding. Executive’s Base Salary
shall be adjusted annually by a percentage equal to the percent change set forth in the U.S. Department of Labor and Bureau of Labor Statistics’ Consumer Price Index for U.S. Cities. Executive understands and agrees that neither his job
performance nor promotions, commendations, bonuses or the like from the Company give rise to or in any way serve as the basis for modification, amendment, or extension, by implication or otherwise, of this Agreement. 
 (b) Discretionary Bonus. The performance of Executive and the Company may be reviewed by the Board periodically, and, on that basis, the Board
may, in its discretion, award the Executive a bonus. Any such bonus shall be subject to applicable withholding. 
 (c) Executive
Benefits. During his employment hereunder, Executive shall be eligible to participate in the employee benefit plans currently and hereafter maintained by the Company of general applicability to other key executives of the Company, including,
without limitation, group health, disability, and life insurance benefits and participation in any Company profit-sharing, retirement or pension plan, and vacation consistent with the vacation policies of the Company. 
 (d) Stock Option. As of the Commencement Date, Executive shall be granted a nonstatutory stock option which shall consist of 250,000 shares of the
Company’s then issued and outstanding shares of Common Stock at an exercise price equal to the fair market value of the Common Stock on the date of grant. Subject to the acceleration of vesting provisions in this Section 3 and
Section 5 of This Agreement, the Option shall commence vesting on October 1, 1998, and shall vest and become exercisable as to  1/48th of the shares subject to the Option per month, so as to be fully
vested on October 1, 2002, subject to Executive continuing to render services to the Company as President and Chief Executive Officer. The Option shall be in all respects subject to the terms, definitions and provisions of the Company’s
1996 Stock Option Plan (the “Option Plan”) and the stock option agreement by and between Executive and the Company (the “Option Agreement”), all of which documents are incorporated herein by reference. 
 Notwithstanding the above, Executive shall fully vest in and have the right to exercise the Option as to all of the shares subject to the Option,
including shares as to which it would not otherwise by vested or exercisable, in the event that (i) the Company enters into a merger or other reorganization (as defined in Section 181 of the California Corporations Code) 

  

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with or into another corporation or entity (except where California Corporations Code Section 1201(b) does not require the approval of the outstanding
shares of the Company with respect to such merger or other reorganization), (ii) the Company sells all or substantially all of its assets, (iii) a person or entity makes a tender or exchange offer for and acquires 50% or more of the
issued, and outstanding voting securities of the Company, or (iv) any person within the meaning of Section 3(a)(9) or Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, acquires more than 50% of the Company’s
issued and outstanding voting securities of the Company. 
 4. Expenses. The company will pay or reimburse Executive for reasonable
travel, entertainment or other expenses incurred by Executive in the furtherance of or in connection with the performance of Executive’s duties hereunder in accordance with the Company’s established policies. 
 5. Cancellation of Consulting Agreement. Upon the Commencement Date, Executive and Company agree to cancel and forego their rights, if any, under
the Consulting Agreement. 
 6. Severance Benefits. 
 (a) Termination without Cause during Leave of Absence. If Executive’s employment with the Company terminates other than voluntarily by the Executive or for “Cause” (as defined herein) at any time
during Executive’s Leave of Absence, then (i) Executive shall become a consultant of the Company and enter into an agreement with the Company containing the terms of the Consulting Agreement; provided, however, that Executive’s
compensation level shall equal that of Dr. Khosla, (ii) vesting of the Option will immediately cease and Executive shall have the right to exercise any vested portion of the Option for three (3) months following such termination, and
(iii) Executive shall only be eligible for severance benefits in accordance with the Company’s established policies as then in effect. 
 (b) Voluntary Termination During Leave of Absence. If Executive’s employment with the Company terminates voluntarily by the Executive at any time during Executive’s Leave of Absence, then (i) Executive shall become a
consultant of the Company and enter into an agreement with the Company containing the terms of the Consulting Agreement; provided, however, that Executive’s compensation level shall equal that of Dr. Khosla, (ii) the vesting of the
Option will immediately cease and Executive shall have thirty (30) days to exercise vested shares, if any, subject to the Option, and (iii) Executive shall only be eligible for severance benefits in accordance with the Company’s
established policies as then in effect. 
 (c) Termination without Cause after Leave of Absence. If Executive’s employment with
the Company terminates other than voluntarily by the Executive or for “Cause” (as defined herein”) at any time after Executive’s Leave of Absence, then (i) Executive shall be entitled to receive a lump sum severance payment
(less applicable withholding taxes) in an amount equal to eighteen (18) months of his Base Salary, as then in effect; and (ii) an additional eighteen (18) months of the shares subject to the Option shall vest as of the date of such
termination and Executive have the right to exercise, for three (3) months following termination, the vested and exercisable shares subject to the Option. 
  

 - 3 - 

 (d) Voluntary Termination after Leave of Absence. If Executive’s employment with the Company
terminates voluntarily by Executive at any time after the Leave of Absence, then Executive shall only be eligible for severance benefits in accordance with the Company’s established policies as then in effect. 
 (e) Termination for Cause. If Executive’s employment with the Company terminates for “Cause” (as defined herein) by the Company,
then Executive shall only be eligible for severance benefits in accordance with the Company’s established policies as then in effect. For this purpose, “Cause” is defined as (i) an act of dishonesty made by Executive in
connection with Executive’s responsibilities as an employee, (ii) Executive’s conviction of, or plea of nolo contendere to, a felony, (iii) Executive’s gross misconduct, or (iv) Executive’s failure to
perform his employment duties. 
 7. Enforcement. In the event of any action to enforce the terms of this Agreement, the prevailing
party in such action shall be entitled to such party’s reasonable costs and expenses of enforcement including, without limitation, reasonable attorneys’ fees. 
 8. Assignment. This Agreement shall be binding upon and inure to the benefit of (a) the heirs, executors and legal representatives of Executive upon Executive’s death and (b) any successor of the
Company. Any such successor of the Company shall be deemed substituted for the Company under the terms of this Agreement for all purposes. As used herein, “successor” shall include any person, firm, corporation or other business entity
which at any time, whether by purchase, merger or otherwise, directly or indirectly, acquires all or substantially all of the assets or business of the Company. None of the rights of Executive to receive any form of compensation payable pursuant to
this Agreement shall be assignable or transferable except through a testamentary disposition or by the laws of descent and distribution upon the death of Executive following termination without cause. Any attempted assignment, transfer, conveyance
or other disposition (other than as aforesaid) of any interest in the rights of Executive to receive any form of compensation hereunder shall be null and void. 
 9. Notices. All notices, requests, demands and other communications called for hereunder shall be in writing and shall be deemed given if delivered personally, one (1) day after mailing via Federal Express
overnight or a similar overnight delivery service, or three (3) days after being mailed by registered or certified mail, return receipt requested, prepaid and addressed to the parties or their successors in interest at the following addresses,
or at such other addresses as the parties may designate by written notice in the manner aforesaid: 
  

			
	If to the Company:	    	Kosan Biosciences, Inc.
		    	1450 Rollins Road
		    	Burlingame, CA 94010
		
	If to Executive:	    	Daniel V. Santi
		    	at the last residential address known by Company.

  

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 10. Severability. In the event that any provision hereof becomes or is declared by a court of
competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision. 
 11. Entire Agreement. This Agreement, the Option Agreement and the Confidential Information and Invention Assignment Agreement dated November 1, 1998 represent the entire agreement and understanding between the Company and
Executive concerning Executive’s employment relationship with the Company, and supersede and replace any and all prior agreements and understandings concerning Executive’s employment relationship with the Company. 
 12. No Oral Modification, Cancellation or Discharge. This Agreement may only be amended, canceled or discharged in writing signed by Executive and
the Company. 
 13. Governing Law. This Agreement shall be governed by the internal substantive laws, but not the choice of law rules,
of the State of California. 
 14. Effective Date. This Agreement is effective immediately after it has been signed. 
 15. Acknowledgment. Executive acknowledges that he has had the opportunity to discuss this matter with and obtain advice from his private
attorney, has had sufficient time to, and has carefully read and fully understands all the provisions of this Agreement, and is knowingly and voluntarily entering into this Agreement. 
 IN WITNESS WHEREOF, the undersigned have executed this Agreement on the respective dates set forth below. 
  

			
	KOSAN BIOSCIENCES, INC.
		
	By:	 	 /s/ Michael S. Ostrach

	Name:	 	Michael S. Ostrach
	Title:	 	VP and COO
	
	DANIEL V. SANTI
	
	 /s/ Daniel V. Santi

	Signature

  

 - 5 - 

 EXHIBIT D 
 INDEMNIFICATION AGREEMENT 
  

 14 

 KHOSLA AND SANTI, INC. 
 INDEMNIFICATION AGREEMENT 
 This Indemnification Agreement (“Agreement”) is made as of this
12th day of January, 1995, by and between Khosla and Santi, Inc. a California corporation (the “Company”),
and Daniel V. Santi (Indemnitee”). 
 WHEREAS, the Company and Indemnitee recognize the increasing difficulty in obtaining
directors’ and officers’ liability insurance, the significant increases in the cost of such insurance and the general reductions in the coverage of such insurance; 
 WHEREAS, the Company and Indemnitee further recognize the substantial increase in corporate litigation in general, subjecting officers and directors to
expensive litigation risks at the same time as the availability and coverage of liability insurance has been severely limited; 
 WHEREAS,
Indemnitee does not regard the current protection available as adequate under the present circumstances, and Indemnitee and other officers and directors of the Company may not be willing to continue to serve as officers and directors without
additional protection; and 
 WHEREAS, the Company desires to attract and retain the services of highly qualified individuals, such as
Indemnitee, to serve as officers and directors of the Company and to indemnify its officers and directors so as to provide them with the maximum protection permitted by law. 
 NOW, THEREFORE, the Company and Indemnitee hereby agree as follows: 
 1. Indemnification. 
 (a) Third Party Proceedings. The Company shall indemnify Indemnitee if
Indemnitee is or was a party or is threatened to be made a party to any threatened, pending or completed action or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the Company) by
reason of the fact that Indemnitee is or was a director, officer, employee or agent of the Company, or any subsidiary of the Company, by reason of any action or inaction on the part of Indemnitee while an officer or director or by reason of the fact
that Indemnitee is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys’ fees), judgments,
fines and amounts paid in settlement (if such settlement is approved in advance by the Company, which approval shall not be unreasonably withheld) actually and reasonably incurred by Indemnitee in connection with such action or proceeding if
Indemnitee acted in good faith and in a manner Indemnitee believed to be in the best interests of the Company, and, with respect to any criminal action or proceeding, had no reasonable cause to believe Indemnitee’s conduct was unlawful. The
termination of any 

 
action or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a
presumption that (i) Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed to be in the best interests of the Company, or (ii) with respect to any criminal action or proceeding, Indemnitee had reasonable
cause to believe that Indemnitee’s conduct was unlawful. 
 (b) Proceedings By or in the Right of the Company. The Company shall
indemnify Indemnitee if Indemnitee was or is a party or is threatened to be made a party to any threatened, pending or completed action or proceeding by or in the right of the Company or any subsidiary of the Company to procure a judgment in its
favor by reason of the fact that Indemnitee is or was a director, officer, employee or agent of the Company, or any subsidiary of the Company, by reason of any action or inaction on the part of Indemnitee while an officer or director or by reason of
the fact that Indemnitee is or was serving at the request of the Company as a director, officer employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys’ fees) and,
to the fullest extent permitted by law, amounts paid in settlement, in each case to the extent actually and reasonably incurred by Indemnitee in connection with the defense or settlement of such action or proceeding if Indemnitee acted in good faith
and in a manner Indemnitee believed to be in the best interests of the Company and its shareholders. 
 2. Expenses: Indemnification
Procedure. 
 (a) Advancement of Expenses. The Company shall advance all expenses incurred by Indemnitee in connection with the
investigation, defense, settlement or appeal of any civil or criminal action or proceeding referenced in Section 1(a) or (b) hereof (but not amounts actually paid in settlement of any such action or proceeding). Indemnitee hereby
undertakes to repay such amounts advanced only if, and to the extent that, it shall ultimately be determined that Indemnitee is not entitled to be indemnified by the Company as authorized hereby. The advances to be made hereunder shall be paid by
the Company to Indemnitee within twenty (20) days following delivery of a written request therefore by Indemnitee to the Company. 
 (b)
Notice/Cooperation by Indemnitee. Indemnitee shall, as a condition precedent to his right to be indemnified under this Agreement, give the Company notice in writing as soon as practicable of any claim made against Indemnitee for which
indemnification will or could be sought under this Agreement. Notice to the Company shall be directed to the Chief Executive Officer of the Company at the address shown on the signature page of this Agreement (or such other address as the Company
shall designate in writing to Indemnitee). Notice shall be deemed received three business days after the date postmarked if sent by domestic certified or registered mail, properly addressed; otherwise notice shall be deemed received when such notice
shall actually be received by the Company. In addition, Indemnitee shall give the Company such information and cooperation as it may reasonably require and as shall be within Indemnitee’s power. 
 (c) Procedure. Any indemnification provided for in Section 1 shall be made no later than forty-five (45) days after receipt of the
written request of Indemnitee. If a claim under this Agreement, under any statute, or under any provision of the Company’s Articles of 

  

 - 2 - 

 
Incorporation or Bylaws providing for indemnification, is not paid in full by the Company within forty-five (45) days after a written request for
payment thereof has first been received by the Company, Indemnitee may, but need not, at any time thereafter bring an action against the Company to recover the unpaid amount of the claim, and subject to Section 13 of this Agreement, Indemnitee
shall also be entitled to be paid for the expenses (including attorneys’ fees) of bringing such action. It shall be a defense to any such action (other than an action brought to enforce a claim for expenses incurred in connection with any
action or proceeding in advance of its final disposition) that Indemnitee has not met the standards of conduct which make it permissible under applicable law for the Company to indemnify Indemnitee for the amount claimed, and Indemnitee shall be
entitled to receive interim payments of expenses pursuant to Subsection 2(a) unless and until such defense may be finally adjudicated by court order or judgment from which no further right of appeal exists. It is the parties’ intention that if
the Company contests Indemnitee’s right to indemnification, the question of Indemnitee’s right to indemnification shall be for the court to decide, and neither the failure of the Company (including its Board of Directors, any committee or
subgroup of the Board of Directors, independent legal counsel, or its shareholders) to have made a determination that indemnification of Indemnitee is proper in the circumstances because Indemnitee has met the applicable standard of conduct required
by applicable law, nor an actual determination by the Company (including its Board of Directors, any committee or subgroup of the Board of Directors, independent legal counsel, or its shareholders) that Indemnitee has not met such applicable
standard of conduct, shall create a presumption that Indemnitee has or has not met the applicable standard of conduct. 
 (d) Notice to
Insurers. If, at the time of the receipt of a notice of a claim pursuant to Section 2(b) hereof, the Company has director and officer liability insurance in effect, the Company shall give prompt notice of the commencement of such proceeding
to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result
of such proceeding in accordance with the terms of such policies. 
 (e) Selection of Counsel. In the event the Company shall be
obligated under Section 2(a) hereof to pay the expenses of any proceeding against Indemnitee, the Company, if appropriate, shall be entitled to assume the defense of such proceeding, with counsel approved by Indemnitee, which approval shall not
be unreasonably withheld, upon the delivery to Indemnitee of written notice of its election so to do. After delivery of such notice, approval of such counsel by Indemnitee and the retention of such counsel by the Company, the Company will not be
liable to Indemnitee under this Agreement for any fees of counsel subsequently incurred by Indemnitee with respect to the same proceeding, provided that (i) Indemnitee shall have the right to employ his counsel in any such proceeding at
Indemnitee’s expense; and (ii) if (A) the employment of counsel by Indemnitee has been previously authorized by the Company, (B) Indemnitee shall have reasonably concluded that there may be a conflict of interest between the
Company and Indemnitee in the conduct of any such defense or (C) the Company shall not, in fact, have employed counsel to assume the defense of such proceeding, then the fees and expenses of Indemnitee’s counsel shall be at the expense of
the Company. 
  

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 3. Additional Indemnification Rights; Nonexclusivity. 
 (a) Scope. Notwithstanding any other provision of this Agreement, the Company hereby agrees to indemnify the Indemnitee to the fullest extent
permitted by law, notwithstanding that such indemnification is not specifically authorized by the other provisions of this Agreement, the Company’s Article of Incorporation, the Company’s Bylaws or by statute. In the event of any change,
after the date of this Agreement, in any applicable law, statute or rule which expands the right of a California corporation to indemnify a member of its board of directors, an officer or other corporate agent, such changes shall be, ipso
facto, within the purview of Indemnitee’s rights and Company’s obligations, under this Agreement. In the event of any change in any applicable law, statute or rule which narrows the right of a California corporation to indemnify a
member of its Board of Directors, an officer or other corporate agent, such changes, to the extent required by such law, statute or rule to be applied to this Agreement, shall have the effect on this Agreement and the parties’ rights and
obligations hereunder as is required by such law, statute or rule. 
 (b) Nonexclusivity. The indemnification provided by this
Agreement shall not be deemed exclusive by any rights to which Indemnitee may be entitled under the Company’s Articles of Incorporation, its Bylaws, any agreement, any vote of shareholders or disinterested directors, the California General
Corporation Law, or otherwise, both as to action in Indemnitee’s official capacity and as to action in another capacity while holding such office. The indemnification provided under this Agreement shall continue as to Indemnitee for any action
taken or not taken while serving in an indemnified capacity even though he may have ceased to serve in such capacity at the time of any action or other covered proceeding. 
 4. Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a
portion of the expenses, judgments, fines or penalties actually or reasonably incurred by him in the investigation, defense, appeal or settlement of any civil or criminal action or proceeding, but not, however, for the total amount thereof, the
Company shall nevertheless indemnify Indemnitee for the portion of such expenses, judgments, fines or penalties to which Indemnitee is entitled. 
 5. Mutual Acknowledgement. Both the Company and Indemnitee acknowledge that in certain instances, Federal law or applicable public policy may prohibit the Company from indemnifying its directors and officers under this Agreement or
otherwise. Indemnitee understands and acknowledges that the Company has undertaken or may be required in the future to undertake with the Securities and Exchange Commission to submit the question of indemnification to a court in certain
circumstances for a determination of the Company’s right under public policy to indemnify Indemnitee. 
 6. Directors’ and
Officers’ Liability Insurance. The Company shall, from time to time, make the good faith determination whether or not it is practicable for the Company to obtain and maintain a policy or policies of insurance with reputable insurance
companies providing the officers and directors of the Company with coverage for losses from wrongful acts, or to ensure the Company’s performance of its indemnification obligations under this Agreement. Among other considerations, the Company
will weigh the costs of obtaining such 

  

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insurance coverage against the protection afforded by such coverage. In all policies of directors’ and officers’ liability insurance, Indemnitee
shall be named as an insured in such a manner as to provide Indemnitee the same rights and benefits as are accorded to the most favorably insured of the Company’s directors, if Indemnitee is a director; or of the Company’s officers, if
Indemnitee is not a director of the Company but is an officer; or of the Company’s key employees, if Indemnitee is not an officer or director but is a key employee. Notwithstanding the foregoing, the Company shall have no obligation to obtain
or maintain such insurance if the Company determines in good faith that such insurance is not reason-ably available, if the premium costs for such insurance are disproportionate to the amount of coverage provided, if the coverage provided by such
insurance is limited by exclusions so as to provide an insufficient benefit, or if Indemnitee is covered by similar insurance maintained by a subsidiary or parent of the Company. 
 7. Severability. Nothing in this Agreement is intended to require or shall be construed as requiring the Company to do or fail to do any act in
violation of applicable law. The Company’s inability, pursuant to court order, to perform its obligations under this Agreement shall not constitute a breach of this Agreement. The provisions of this Agreement shall be severable as provided in
this Section 7. If this Agreement or any portion hereof shall be invalidated on any ground by any court of competent jurisdiction, then the Company shall nevertheless indemnify Indemnitee to the full extent permitted by any applicable portion
of this Agreement that shall not have been invalidated, and the balance of this Agreement not so invalidated shall be enforceable in accordance with its terms. 
 8. Exceptions. Any other provisions herein to the contrary notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement: 
 (a) Excluded Acts. To indemnify Indemnitee for any acts or omissions or transactions from which a director may not be relieved of liability under
the California General Corporation Law. 
 (b) Claims Initiated by Indemnitee. To indemnify or advance expenses to Indemnitee with
respect to proceedings or claims initiated or brought voluntarily by Indemnitee and not by way of defense, except with respect to proceedings brought to establish or enforce a right to indemnification under this Agreement or any other statute or law
or otherwise as required under Section 317 of the California General Corporation Law, but such indemnification or advancement of expenses may be provided by the Company in specific cases if the Board of Directors has approved the initiation or
bringing of such suit; or 
 (c) Lack of Good Faith. To indemnify Indemnitee for any expenses incurred by the Indemnitee with respect
to any proceeding instituted by Indemnitee to enforce or interpret this Agreement, if a court of competent jurisdiction determines that each of the material assertions made by the Indemnitee in such proceeding was not made in good faith or was
frivolous; or 
 (d) Insured Claims. To indemnify Indemnitee for expenses or liabilities of any type whatsoever (including, but not
limited to, judgments, fines, ERISA excise taxes or penalties, and amounts paid in settlement) which have been paid directly to Indemnitee by an insurance carrier under a policy of directors’ and officers’ liability insurance maintained by
the Company; or 
  

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 (e) Claims Under Section 16(b). To indemnify Indemnitee for expenses and the payment of
profits arising from the purchase and sale by Indemnitee of securities in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended, or any similar successor statute. 
 9. Effectiveness of Agreement. To the extent that the indemnification permitted under the terms of certain provisions of this Agreement exceeds
the scope of the indemnification expressly permitted by Section 317 of the California General Corporation Law, such provisions shall not be effective unless and until the Company’s Articles of Incorporation authorize such additional rights
of indemnification. In all other respects, the balance of this Agreement shall be effective as of the date set forth on the first page and may apply to acts or omissions of Indemnitee which occurred prior to such date if Indemnitee was an officer,
director, employee or other agent of the Company, or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, at the time such act or omission
occurred. 
 10. Construction of Certain Phrases. 
 (a) For purposes of this Agreement, references to the “Company” shall also include, in addition to the resulting corporation, any constituent corporation (including any constituent of a constituent) absorbed
in consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, employees or agents, so that if Indemnitee is or was a director, officer, employee or agent of such
constituent corporation, or is or was serving at the request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, Indemnitee shall stand in the same
position under the provisions of this Agreement with respect to the resulting or surviving corporation as Indemnitee would have with respect to such constituent corporation if its separate existence had continued. 
 (b) For purposes of this Agreement, references to “other enterprises” shall include employee benefit plans; references to “fines”
shall include any excise taxes assessed on Indemnitee with respect to an employee benefit plan; and references to “serving at the request of the Company” shall include any service as a director, officer, employee or agent of the Company
which imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit plan, its participants, or beneficiaries. 
 11. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall constitute an original. 
 12. Successors and Assigns. This Agreement shall be binding upon the Company and its successors and assigns, and shall inure to the benefit of Indemnitee and Indemnitee’s estate, heirs, legal
representatives and assigns. 
  

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 13. Attorneys’ Fees. In the event that any action is instituted by Indemnitee under this
Agreement to enforce or interpret any of the terms hereof, Indemnitee shall be entitled to be paid all costs and expenses, including reasonable attorneys’ fees, incurred by Indemnitee with respect to such action, unless as a part of such
action, a court of competent jurisdiction determines that each of the material assertions made by Indemnitee as a basis for such action were not made in good faith or were frivolous. In the event of an action instituted by or in the name of the
Company under this Agreement or to enforce or interpret any of the terms of this Agreement, Indemnitee shall be entitled to be paid all costs and expenses, including reasonable attorneys’ fees, incurred by Indemnitee in defense of such action
(including with respect to Indemnitee’s counterclaims and cross-claims made in such action), unless as a part of such action the court determines that each of Indemnitee’s material defenses to such action were made in bad faith or were
frivolous. 
 14. Notice. All notices, requests, demands and other communications under this Agreement shall be in writing and shall
be deemed duly given (i) if delivered by hand and receipted for by the party addressee, on the date of such receipt, or (ii) if mailed by domestic certified or registered mail with postage prepaid, on the third business day after the date
postmarked. Addresses for notice to either party are as shown on the signature page of this Agreement, or as subsequently modified by written notice. 
 15. Consent to Jurisdiction. The Company and Indemnitee each hereby irrevocably consent to the jurisdiction of the courts of the State of California for all purposes in connection with any action or proceeding
which arises out of or relates to this Agreement and agree that any action instituted under this Agreement shall be brought only in the state courts of the State of California. 
 16. Choice of Law. This Agreement shall be governed by and its provisions construed in accordance with the laws of the State of California as
applied to contracts between California residents entered into and to be performed entirely within California. 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

  

			
	KHOSLA AND SANTI, INC.,
	a California corporation
		
	By:	 	 /s/ Daniel V. Santi

	Title:	 	President

 AGREED TO AND ACCEPTED: 
  

	
	INDEMNITEE:
	
	Daniel V. Santi
	
	 /s/ Daniel V. Santi

	(Signature)

  

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