Document:

Employee Stock Purchase Agreement

 Exhibit 10.1 
 MINDSPEED TECHNOLOGIES, INC. 
 AMENDED AND RESTATED 

EMPLOYEE STOCK PURCHASE PLAN 
 The following constitute the provisions of the Employee Stock Purchase Plan of Mindspeed Technologies, Inc. 
 1.      Purpose. The purpose of the Plan (as defined below) is to provide Employees (as defined below) of the Company (as defined below) and its Designated Parents (as
defined below) or Subsidiaries (as defined below) with an opportunity to purchase Common Stock (as defined below) of the Company through accumulated payroll deductions. It is the intention of the Company to have the Plan qualify as an “employee
stock purchase plan” under Section 423 of the Code (as defined below) and the applicable regulations thereunder. The provisions of the Plan, accordingly, shall be construed so as to extend and limit participation in a manner consistent
with the requirements of that section of the Code. 
 2.      Definitions.
As used herein, the following definitions shall apply: 

(a)      “Administrator” means either the Board or a committee of the
Board that is responsible for the administration of the Plan as is designated from time to time by resolution of the Board. 
 (b)      “Applicable Laws” means the legal requirements relating to the administration of employee stock purchase plans, if any, under applicable provisions
of federal securities laws, state corporate and securities laws, the Code and the applicable regulations thereunder, the rules of any applicable stock exchange or national market system, and the rules of any foreign jurisdiction applicable to
participation in the Plan by residents therein. 

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

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

 (e)      “Common Stock” means the common stock of the Company.

 (f)      “Company” means Mindspeed Technologies, Inc, a
Delaware corporation. 
 (g)      “Compensation” means an
Employee’s base salary from the Company or one or more Designated Parents or Subsidiaries, including such amounts of base salary as are deferred by the Employee: (i) under a qualified cash or deferred arrangement described in
Section 401(k) of the Code; or (ii) to a plan qualified under Section 125 of the Code. “Compensation” does not include overtime, bonuses, annual awards, other incentive payments, reimbursements or other expense allowances,
fringe benefits (cash or non-cash), moving expenses, deferred compensation, contributions (other than contributions described in the first sentence) made on the Employee’s behalf by the Company or one or more Designated Parents or Subsidiaries
under any employee benefit or welfare plan now or hereafter established, and any other payments not specifically referenced in the first sentence. 

  
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 (h)      “Corporate
Transaction” means any of the following transactions: 
 (i)      a
merger or consolidation in which the Company is not the surviving entity, except for a transaction the principal purpose of which is to change the state in which the Company is incorporated; 

(ii)      the sale, transfer or other disposition of all or substantially all of the
assets of the Company (including the capital stock of the Company’s subsidiary corporations); 

(iii)      the complete liquidation or dissolution of the Company; 

(iv)      any reverse merger or series of related transactions culminating in a reverse
merger (including, but not limited to, a tender offer followed by a reverse merger) in which the Company is the surviving entity but in which securities possessing more than fifty percent (50%) of the total combined voting power of the
Company’s outstanding securities are transferred to a person or persons different from those who held such securities immediately prior to such merger or the initial transaction culminating in such merger; or 

(v)      acquisition in a single or series of related transactions by any person or
related group of persons (other than the Company or by a Company-sponsored employee benefit plan) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than fifty percent (50%) of the total
combined voting power of the Company’s outstanding securities, but excluding any such transaction or series of related transactions that the Administrator determines shall not be a Corporate Transaction. 

(i)      “Designated Parents or Subsidiaries” means the Parents or
Subsidiaries, which have been designated by the Administrator from time to time as eligible to participate in the Plan. 
 (j)      “Effective Date” means the date of the approval of the Plan by the Company’s stockholders. However, should any Parent or Subsidiary become a
Designated Parent or Subsidiary after such date, then the Administrator, in its discretion, shall designate a separate Effective Date with respect to the employee-participants of such Designated Parent or Subsidiary. 

(k)      “Employee” means any individual, including an officer or
director, who is an employee of the Company or a Designated Parent or Subsidiary for purposes of Section 423 of the Code. For purposes of the Plan, the employment relationship shall be treated as continuing intact while the individual is on
sick leave or other leave of absence approved by the individual’s employer. Where the period of leave exceeds ninety (90) days and the individual’s right to reemployment is not guaranteed either by statute or by contract, the
employment relationship will be deemed to have terminated on the ninety-first (91st) day of such leave, for purposes of determining eligibility to participate in the Plan. 

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

  
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 (m)      “Exercise Date”
means the last day of each Purchase Period. 
 (n)      “Fair Market
Value” means, as of any date, the value of Common Stock determined as follows: 

(i)      If the Common Stock is listed on one or more established stock exchanges,
including without limitation, The NASDAQ Global Select Market, The NASDAQ Global Market or The NASDAQ Capital Market of The Nasdaq Stock Market LLC, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no
sales were reported) as quoted on the principal exchange or system on which the Common Stock is listed (as determined by the Administrator) on the date of determination (or, if no closing sales price or closing bid was reported on that date, as
applicable, on the last trading date such closing sales price or closing bid was reported), as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 

(ii)      If the Common Stock is regularly quoted on an automated quotation system
(including the OTC Bulletin Board) or by a recognized securities dealer, but selling prices are not reported, its Fair Market Value shall be the mean between the high bid and low asked prices for the Common Stock on the date of determination (or, if
no such prices were reported on that date, on the last date such prices were reported), as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or 

(iii)      In the absence of an established market for the Common Stock of the type
described in (i) and (ii), above, its Fair Market Value shall be determined by the Administrator in good faith. 
 (o)      “New Exercise Date” has the meaning set forth in Section 18(b). 

(p)      “Offer Period” means an Offer Period established pursuant to
Section 4. 
 (q)      “Offering Date” means the first day
of each Offer Period. 
 (r)      “Parent” means a “parent
corporation” of the Company, whether now or hereafter existing, as defined in Section 424(e) of the Code. 
 (s)      “Participant” means an Employee of the Company or Designated Parent or Subsidiary who has enrolled in the Plan as set forth in Section 5(a).

 (t)      “Plan” means this Amended and Restated Employee Stock
Purchase Plan. 
 (u)      “Purchase Period” means a period
specified as such pursuant to Section 4(b). 
 (v)      “Purchase
Price” means an amount equal to 85% of the Fair Market Value of a share of Common Stock on the Offering Date or on the Exercise Date, whichever is lower. 

(w)      “Reserves” means, as of any date, the sum of : (1) the
number of shares of Common Stock covered by each then outstanding option under the Plan which has not yet been exercised; and (2) the number of shares of Common Stock which have been authorized for issuance under the Plan, but not then subject
to an outstanding option. 

  
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 (x)      “Subsidiary” means a
“subsidiary corporation” of the Company, whether now or hereafter existing, as defined in Section 424(f) of the Code. 
 3.      Eligibility. 

(a)      General. Subject to the further limitations in Sections 3(b) and 3(c), any
individual who is an Employee on a given Offering Date shall be eligible to participate in the Plan for the Offer Period commencing with such Offering Date. No individual who is not an Employee shall be eligible to participate in the Plan.

 (b)      Limitations on Grant and Accrual. Any provisions of the Plan to
the contrary notwithstanding, no Employee shall be granted an option under the Plan: (i) if, immediately after the grant, such Employee (taking into account stock owned by any other person whose stock would be attributed to such Employee
pursuant to Section 424(d) of the Code) would own stock and/or hold outstanding options to purchase stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or of any
Parent or Subsidiary; or (ii) which permits the Employee’s rights to purchase stock under all employee stock purchase plans of the Company and its Parents or Subsidiaries to accrue at a rate which exceeds Twenty-Five Thousand Dollars
(US$25,000) worth of stock (determined at the Fair Market Value of the shares at the time such option is granted) for each calendar year in which such option is outstanding at any time. The determination of the accrual of the right to purchase stock
shall be made in accordance with Section 423(b)(8) of the Code and the regulations thereunder. No more than Two Hundred Fifty Thousand (250,000) shares of Common Stock may be purchased during any Offer Period. 

(c)      Other Limits on Eligibility. Notwithstanding Subsection (a), above,
the following Employees shall not be eligible to participate in the Plan for any relevant Offer Period: (i) Employees whose customary employment is 20 or fewer hours per week; (ii) Employees whose customary employment is for not
more than 5 months in any calendar year; (iii) Employees who have not been employed since the first day of the enrollment period preceding an Offer Period (such enrollment period not to exceed two months); and (iv) Employees who are
subject to rules or laws of a foreign jurisdiction that prohibit or make the participation of such Employees in the Plan violative of other applicable laws. 
 4.      Offer Periods. 

(a)      The Plan shall be implemented through overlapping or consecutive Offer Periods
until such time as: (i) the maximum number of shares of Common Stock available for issuance under the Plan shall have been purchased; or (ii) the Plan shall have been sooner terminated in accordance with Section 19. The maximum
duration of an Offer Period shall be twenty-seven (27) months. Initially, the Plan shall be implemented through consecutive Offer Periods of six (6) months’ duration commencing each June 1 and December 1 following the
Effective Date. 

  
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 (b)      A Participant shall be granted a
separate option for each Offer Period in which he or she participates. The option shall be granted on the Offering Date and shall be automatically exercised on the last day of the Offer Period. However, with respect to any Offer Period, the
Administrator may specify shorter Purchase Periods within an Offer Period, such that the option granted on the Offering Date shall be automatically exercised in successive installments on the last day of each Purchase Period ending within the Offer
Period. 
 (c)      If on the first day of any Purchase Period in an Offer Period
in which an Employee is a Participant, the Fair Market Value of the Common Stock is less than the Fair Market Value of the Common Stock on the Offering Date of the Offer Period (after taking into account any adjustment during the Offer Period
pursuant to Section 18(a)), the Offer Period shall be terminated automatically and the Participant shall be enrolled automatically in the new Offer Period which has its first Purchase Period commencing on that date, provided the Employee is
eligible to participate in the Plan on that date and has not elected to terminate participation in the Plan. 

(d)      Except as specifically provided herein, the acquisition of Common Stock through
participation in the Plan for any Offer Period shall neither limit nor require the acquisition of Common Stock by a Participant in any subsequent Offer Period. 
 5.      Participation. 

(a)      An eligible Employee may become a Participant in the Plan by submitting an
authorization of payroll deduction (using such form or method (including electronic forms) as the Administrator may designate from time to time) as of a date in advance of the Offering Date for the Offer Period in which such participation will
commence, as required by the Administrator for all eligible Employees with respect to a given Offer Period. 

(b)      Payroll deductions for a Participant shall commence with the first partial or full
payroll period beginning on the Offering Date and shall end on the last complete payroll period during the Offer Period, unless sooner terminated by the Participant as provided in Section 10. 

6.      Payroll Deductions. 

(a)      At the time a Participant enrolls in the Plan, the Participant shall elect to have
payroll deductions made during the Offer Period in amounts between one percent (1%) and not exceeding ten percent (10%) of the Compensation which the Participant receives during the Offer Period. 

(b)      All payroll deductions made for a Participant shall be credited to the
Participant’s account under the Plan and will be withheld in whole percentages only. A Participant may not make any additional payments into such account. 
 (c)      A Participant may discontinue participation in the Plan as provided in Section 10, or may increase or decrease the rate of payroll deductions during the Offer
Period by submitting notice of a change of status (using such form or method (including electronic forms) as the Administrator may designate from time to time) authorizing an increase or decrease in the payroll deduction rate. Any increase or
decrease in the rate of a Participant’s payroll deductions shall be effective as soon as administratively practicable following the date of the request. A Participant’s payroll deduction authorization (as modified by any change of status
notice) shall remain in effect for successive Offer Periods unless terminated as provided in Section 10. The Administrator shall be authorized to limit the number of payroll deduction rate changes during any Offer Period. 

  
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 (d)      Notwithstanding the foregoing, to the
extent necessary to comply with Section 423(b)(8) of the Code and Section 3(b) herein, a Participant’s payroll deductions shall be decreased to 0%. Payroll deductions shall recommence at the rate provided in such Participant’s
payroll deduction authorization, as amended, when permitted under Section 423(b)(8) of the Code and Section 3(b), unless such participation is sooner terminated by the Participant as provided in Section 10. 

7.      Grant of Option. On the Offering Date, each Participant shall be granted an
option to purchase (at the applicable Purchase Price) shares of Common Stock; provided: (i) that such option shall be subject to the limitations set forth in Sections 3(b), 6 and 12; and (ii) the maximum number of shares of Common
Stock a Participant shall be permitted to purchase in any Offer Period shall be the number of shares determined by dividing $12,500 by the Fair Market Value of a share of Common Stock on the Offering Date, subject to adjustment as provided in
Section 18. Exercise of the option shall occur as provided in Section 8, unless the Participant has withdrawn pursuant to Section 10, and the option, to the extent not exercised, shall expire on the last day of the Offer Period with
respect to which such option was granted. Notwithstanding the foregoing, shares subject to the option may only be purchased with accumulated payroll deductions credited to a Participant’s account in accordance with Section 6. In addition,
to the extent an option is not exercised on an Exercise Date, the option shall lapse and thereafter cease to be exercisable. 
 8.      Exercise of Option. Unless a Participant withdraws from the Plan as provided in Section 10, the Participant’s option for the purchase of shares of
Common Stock will be exercised automatically on each Exercise Date, by applying the accumulated payroll deductions in the Participant’s account to purchase the number of full shares subject to the option by dividing such Participant’s
payroll deductions accumulated prior to such Exercise Date and retained in the Participant’s account as of the Exercise Date by the applicable Purchase Price. No fractional shares will be purchased; any payroll deductions accumulated in a
Participant’s account which are not sufficient to purchase a full share shall be returned to the Participant as soon as administratively practicable, without interest. In addition, any amount remaining in a Participant’s account following
the purchase of shares on the Exercise Date due to the application of Section 423(b)(8) of the Code or Section 7, shall be returned to the Participant and shall not be carried over to the next Offer Period or Purchase Period. During a
Participant’s lifetime, a Participant’s option to purchase shares hereunder is exercisable only by the Participant. 
 9.       Delivery. Upon receipt of a request from a Participant after each Exercise Date on which a purchase of shares occurs, the Company shall arrange for the
delivery to such Participant, as soon as administratively practicable, of the shares purchased upon exercise of the Participant’s option. The Company may arrange for delivery of such shares to an account for the benefit of a Participant
established with a third party designated by the Company. 

  
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 10.    Withdrawal; Termination of Employment. 

(a)      A Participant may either: (i) withdraw all but not less than all the payroll
deductions credited to the Participant’s account and not yet used to exercise the Participant’s option under the Plan; or (ii) terminate future payroll deductions, but allow accumulated payroll deductions to be used to exercise the
Participant’s option under the Plan at any time by giving notice to the Company (using such form or method (including electronic forms) as the Administrator may designate from time to time). If the Participant elects withdrawal alternative
(i) described above, all of the Participant’s payroll deductions credited to the Participant’s account will be paid to such Participant as soon as administratively practicable after receipt of notice of withdrawal, such
Participant’s option for the Offer Period will be automatically terminated, and no further payroll deductions for the purchase of shares will be made during the Offer Period. If the Participant elects withdrawal alternative (ii) described
above, no further payroll deductions for the purchase of shares will be made during the Offer Period, all of the Participant’s payroll deductions credited to the Participant’s account will be applied to the exercise of the
Participant’s option on the next Exercise Date (subject to Sections 3(b), 6, 7 and 12), and after such Exercise Date, such Participant’s option for the Offer Period will be automatically terminated and all remaining accumulated
payroll deduction amounts shall be returned to the Participant. If a Participant withdraws from an Offer Period, payroll deductions will not resume at the beginning of the succeeding Offer Period unless the Participant enrolls in such succeeding
Offer Period. 
 (b)      Upon termination of a Participant’s employment
relationship (as described in Section 2(k)) prior to the next scheduled Exercise Date, the payroll deductions credited to such Participant’s account during the Offer Period but not yet used to exercise the option will be returned to such
Participant or, in the case of his/her death, to the person or persons entitled thereto under Section 14, and such Participant’s option will be automatically terminated without exercise of any portion of such option. 

11.    Interest. No interest shall accrue on the payroll deductions credited to a
Participant’s account under the Plan. 
 12.    Stock. 

(a)      The maximum number of shares of Common Stock which shall be made available for
sale under the Plan shall be One Million Three Hundred Thousand (1,300,000) shares, subject to adjustment upon changes in capitalization of the Company as provided in Section 18. With respect to any amendment to increase the total number
of shares of Common Stock under the Plan, the Administrator shall have discretion to disallow the purchase of any increased shares of Common Stock for Offer Periods in existence prior to such increase. If the Administrator determines that on a given
Exercise Date the number of shares with respect to which options are to be exercised may exceed (x) the number of shares then available for sale under the Plan or (y) the number of shares available for sale under the Plan on the Offering
Date(s) of one or more of the Offer Periods in which such Exercise Date is to occur, the Administrator may make a pro rata allocation of the shares remaining available for purchase on such Offering Dates or Exercise Date, as applicable, in as
uniform a manner as shall be practicable and as it shall determine to be equitable, and shall either continue all Offer Periods then in effect or terminate any one or more Offer Periods then in effect pursuant to Section 19. Any amount
remaining in a Participant’s payroll account following such pro rata allocation shall be returned to the Participant and shall not be carried over to any future Purchase Period or Offer Period, as determined by the Administrator. 

  
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 (b)      A Participant will have no interest
or voting right in shares covered by the Participant’s option until such shares are actually purchased on the Participant’s behalf in accordance with the applicable provisions of the Plan. No adjustment shall be made for dividends,
distributions or other rights for which the record date is prior to the date of such purchase. 

(c)      Shares to be delivered to a Participant under the Plan will be registered in the
name of the Participant. 
 13.    Administration. The Plan shall be administered by
the Administrator, which shall have full and exclusive discretionary authority to construe, interpret and apply the terms of the Plan, to determine eligibility and to adjudicate all disputed claims filed under the Plan. Every finding, decision and
determination made by the Administrator shall, to the full extent permitted by Applicable Law, be final and binding upon all persons. 
 14.    Designation of Beneficiary. 

(a)      Each Participant will file a designation (using such form or method (including
electronic forms) as the Administrator may designate from time to time) of a beneficiary who is to receive any shares and cash, if any, from the Participant’s account under the Plan in the event of such Participant’s death. If a
Participant is married and the designated beneficiary is not the spouse, spousal consent shall be required for such designation to be effective. 
 (b)      Such designation of beneficiary may be changed by the Participant (and the Participant’s spouse, if any) at any time by written notice. In the event of the
death of a Participant and in the absence of a beneficiary validly designated under the Plan who is living (or in existence) at the time of such Participant’s death, the Company shall deliver such shares and/or cash to the executor or
administrator of the estate of the Participant, or if no such executor or administrator has been appointed (to the knowledge of the Administrator), the Administrator shall deliver such shares and/or cash to the spouse (or domestic partner, as
determined by the Administrator) of the Participant, or if no spouse (or domestic partner) is known to the Administrator, then to the issue of the Participant, such distribution to be made per stirpes (by right of representation), or if no issue are
known to the Administrator, then to the heirs at law of the Participant determined in accordance with Section 27. 
 15.    Transferability. No payroll deductions credited to a Participant’s account, options granted hereunder, or any rights with regard to the exercise of an option or to
receive shares under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution, or as provided in Section 14) by the Participant. Any such attempt at assignment,
transfer, pledge or other disposition shall be without effect, except that the Administrator may, in its sole discretion, treat such act as an election to withdraw funds from an Offer Period in accordance with Section 10. 

  
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 16.      Use of Funds. All payroll
deductions received or held by the Company under the Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such payroll deductions or hold them exclusively for the benefit of Participants. All
payroll deductions received or held by the Company may be subject to the claims of the Company’s general creditors. Participants shall have the status of general unsecured creditors of the Company. Any amounts payable to Participants pursuant
to the Plan shall be unfunded and unsecured obligations for all purposes, including, without limitation, Title I of the Employee Retirement Income Security Act of 1974, as amended. The Company shall retain at all times beneficial ownership of
any investments, including trust investments, which the Company may make to fulfill its payment obligations hereunder. Any investments or the creation or maintenance of any trust or any Participant account shall not create or constitute a trust or
fiduciary relationship between the Administrator, the Company or any Designated Parent or Subsidiary and a Participant, or otherwise create any vested or beneficial interest in any Participant or the Participant’s creditors in any assets of the
Company or a Designated Parent or Subsidiary. The Participants shall have no claim against the Company or any Designated Parent or Subsidiary for any changes in the value of any assets that may be invested or reinvested by the Company with respect
to the Plan. 
 17.    Reports. Individual accounts will be maintained for each
Participant in the Plan. Statements of account will be given to Participants at least annually, which statements will set forth the amounts of payroll deductions, the Purchase Price, the number of shares purchased and the remaining cash balance, if
any. 
 18.    Adjustments Upon Changes in Capitalization; Corporate Transactions.

 (a)      Adjustments Upon Changes in Capitalization. Subject to any
required action by the stockholders of the Company, the Reserves, the Purchase Price, the maximum number of shares that may be purchased in any Offer Period or Purchase Period, as well as any other terms that the Administrator determines require
adjustment may be proportionately adjusted for: (i) any increase or decrease in the number of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock;
(ii) any other increase or decrease in the number of issued shares of Common Stock effected without receipt of consideration by the Company; or (iii) as the Administrator may determine in its discretion, any other transaction with respect
to Common Stock, including a corporate merger, consolidation, acquisition of property or stock, separation (including a spin-off or other distribution of stock or property), reorganization, liquidation (whether partial or complete) or any similar
transaction; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Such adjustment, if any, shall be made by the Administrator and its
determination shall be final, binding and conclusive. Except as the Administrator determines, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by
reason hereof shall be made with respect to, the Reserves and the Purchase Price. 

  
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 (b)      Corporate Transactions. In the
event of a proposed Corporate Transaction, each option under the Plan shall be assumed by such successor corporation or a parent or subsidiary of such successor corporation, unless the Administrator, in the exercise of its sole discretion and in
lieu of such assumption, determines to shorten the Offer Period then in progress by setting a new Exercise Date (the “New Exercise Date”). If the Administrator shortens the Offer Period then in progress in lieu of assumption in the
event of a Corporate Transaction, the Administrator shall notify each Participant in writing at least ten (10) business days prior to the New Exercise Date, that the Exercise Date for the Participant’s option has been changed to the New
Exercise Date and that either: 
 (i)      the Participant’s option
will be exercised automatically on the New Exercise Date, unless prior to such date the Participant has withdrawn from the Offer Period as provided in Section 10; or 

(ii)      the Company shall pay to the Participant on the New Exercise Date an amount in
cash, cash equivalents, or property as determined by the Administrator that is equal to the excess, if any, of (x) the Fair Market Value of the shares subject to the option over (y) the Purchase Price due had the Participant’s option
been exercised automatically under Subsection (b)(i) above. In addition, all remaining accumulated payroll deduction amounts shall be returned to the Participant. 

(c)      For purposes of Section 18(b), an option granted under the Plan shall be
deemed to be assumed if, in connection with the Corporate Transaction, the option is replaced with a comparable option with respect to shares of capital stock of the successor corporation or Parent thereof. The determination of option comparability
shall be made by the Administrator prior to the Corporate Transaction and its determination shall be final, binding and conclusive on all persons. 
 19.    Amendment or Termination. 

(a)      The Administrator may at any time and for any reason terminate or amend the Plan.
Except as provided in Section 18, no such termination can adversely affect options previously granted, provided that the Plan or any one or more Offer Periods may be terminated by the Administrator on any Exercise Date or by the Administrator
establishing a new Exercise Date with respect to any Offer Period and/or any Purchase Period then in progress if the Administrator determines that the termination of the Plan or such one or more Offer Periods is in the best interests of the Company
and its stockholders. Except as provided in Section 18 and this Section 19, no amendment may make any change in any option theretofore granted which adversely affects the rights of any Participant without the consent of affected
Participants. To the extent necessary to comply with Section 423 of the Code (or any successor rule or provision or any other Applicable Law), the Company shall obtain stockholder approval of any amendment in such a manner and to such a degree
as required. 

  
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 (b)      Without stockholder consent and
without regard to whether any Participant rights may be considered to have been “adversely affected,” the Administrator shall be entitled to limit the frequency and/or number of changes in the amount withheld during Offer Periods, change
the length of Purchase Periods within any Offer Period, determine the length of any future Offer Period, determine whether future Offer Periods shall be consecutive or overlapping, establish the exchange ratio applicable to amounts withheld in a
currency other than U.S. dollars, establish or change Plan or per Participant limits on share purchases, establish additional terms, conditions, rules or procedures to accommodate the rules or laws of applicable foreign jurisdictions, permit payroll
withholding in excess of the amount designated by a Participant in order to adjust for delays or mistakes in the Company’s processing of properly completed withholding elections, establish reasonable waiting and adjustment periods and/or
accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each Participant properly correspond with amounts withheld from the Participant’s Compensation, and establish such other limitations or
procedures as the Administrator determines in its sole discretion advisable and which are consistent with the Plan, in each case to the extent consistent with the requirements of Code Section 423 and other Applicable Laws. 

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

21.    Conditions Upon Issuance of Shares. Shares shall not be issued with respect to an
option unless the exercise of such option and the issuance and delivery of such shares pursuant thereto shall comply with all Applicable Laws and shall be further subject to the approval of counsel for the Company with respect to such compliance. As
a condition to the exercise of an option, the Company may require the Participant to represent and warrant at the time of any such exercise that the shares are being purchased only for investment and without any present intention to sell or
distribute such shares if, in the opinion of counsel for the Company, such a representation is required by any of the aforementioned Applicable Laws or is otherwise advisable. In addition, no options shall be exercised or shares issued hereunder
before the Plan has been approved by stockholders of the Company as provided in Section 23. 

22.    Term of Plan. The Plan shall become effective upon the earlier to occur of its adoption
by the Board or its approval by the stockholders of the Company. It shall continue in effect for a term of twenty (20) years unless sooner terminated under Section 19. 

23.    Stockholder Approval. Continuance of the Plan shall be subject to approval by the
stockholders of the Company within twelve (12) months before or after the date the Plan is adopted. Such stockholder approval shall be obtained in the degree and manner required under Applicable Laws. 

24.    No Employment Rights. The Plan does not, directly or indirectly, create any right for
the benefit of any employee or class of employees to purchase any shares under the Plan, or create in any employee or class of employees any right with respect to continuation of employment by the Company or a Designated Parent or Subsidiary, and it
shall not be deemed to interfere in any way with such employer’s right to terminate, or otherwise modify, an employee’s employment at any time. 

  
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 25.    No Effect on Retirement and Other Benefit
Plans. Except as specifically provided in a retirement or other benefit plan of the Company or a Designated Parent or Subsidiary, participation in the Plan shall not be deemed compensation for purposes of computing benefits or contributions
under any retirement plan of the Company or a Designated Parent or Subsidiary, and shall not affect any benefits under any other benefit plan of any kind or any benefit plan subsequently instituted under which the availability or amount of benefits
is related to level of compensation. The Plan is not a “Retirement Plan” or “Welfare Plan” under the Employee Retirement Income Security Act of 1974, as amended. 

26.    Effect of Plan. The provisions of the Plan shall, in accordance with its terms, be
binding upon, and inure to the benefit of, all successors of each Participant, including, without limitation, such Participant’s estate and the executors, administrators or trustees thereof, heirs and legatees, and any receiver, trustee in
bankruptcy or representative of creditors of such Participant. 
 27.    Governing
Law. The Plan is to be construed in accordance with and governed by the internal laws of the State of California (as permitted by Section 1646.5 of the California Civil Code, or any similar successor provision) without giving effect to any
choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of California to the rights and duties of the parties, except to the extent the internal laws of the State of California
are superseded by the laws of the United States. Should any provision of the Plan be determined by a court of law to be illegal or unenforceable, the other provisions shall nevertheless remain effective and shall remain enforceable. 

28.    Dispute Resolution. The provisions of this Section 28 shall be the exclusive means
of resolving disputes arising out of or relating to the Plan. The Company and the Participant, or their respective successors (the “parties”), shall attempt in good faith to resolve any disputes arising out of or relating to the
Plan by negotiation between individuals who have authority to settle the controversy. Negotiations shall be commenced by either party by notice of a written statement of the party’s position and the name and title of the individual who will
represent the party. Within thirty (30) days of the written notification, the parties shall meet at a mutually acceptable time and place, and thereafter as often as they reasonably deem necessary, to resolve the dispute. If the dispute has not
been resolved by negotiation, the parties agree that any suit, action, or proceeding arising out of or relating to the Plan shall be brought in the United States District Court for the Central District of California (or should such court lack
jurisdiction to hear such action, suit or proceeding, in a California state court in the County of Orange) and that the parties shall submit to the jurisdiction of such court. The parties irrevocably waive, to the fullest extent permitted by law,
any objection the party may have to the laying of venue for any such suit, action or proceeding brought in such court. THE PARTIES ALSO EXPRESSLY WAIVE ANY RIGHT THEY HAVE OR MAY HAVE TO A JURY TRIAL OF ANY SUCH SUIT, ACTION OR PROCEEDING. If any
one or more provisions of this Section 28 shall for any reason be held invalid or unenforceable, it is the specific intent of the parties that such provisions shall be modified to the minimum extent necessary to make it or its application valid
and enforceable. 

  
 12Stock Option Agreement/Starck

 Exhibit 10.1 

 
  
  

			
	 	  	 CorVel Corporation

	Notice of Grant of Stock Options	  	ID: 33-0282651
	and Option Agreement	  	2010 Main Street Suite 600
		  	Irvine, California 92614

  
  

Daniel J. Starck 
 You have been granted
an option to acquire CorVel Corporation (the “Corporation”) common stock (the “Common Stock”) as follows: 
  

					
	 Non-Qualified Stock Option Grant No.
	  	 	004514	  
	 Date of Grant
	  	 	11/3/2011	  
	 Stock Option Plan
	  	 	1988	  
	 Option Price Per Share
	  	$	52.76	  
	 Total Number of Shares Granted
	  	 	12,500.00	  
	 Total Price of Shares Granted
	  	$	659,500.00	  
	 Expiration Date
	  	 	11/3/2016	  

 Provided you continue to be a Service Provider (as defined in the Stock Option
Agreement attached hereto as Exhibit A) throughout the specified period, the Option will become exercisable in accordance with Schedule A. 
 Optionee (and Optionee’s spouse) hereby agree(s) that the option is granted pursuant to and in accordance with the express terms and conditions of the Stock Option Agreement and the
Corporation’s Restated Omnibus Incentive Plan. 
  
  

					
			
	/s/ Richard J. Schweppe	 	 	 	November 7, 2011
	CorVel Corporation	 		 	Date
			
	/s/ Daniel J. Starck	 	 	 	November 7, 2011
	Daniel J. Starck	 		 	Date
			
	  	 	 	 	 
	Spouse	 		 	Date

  

			
	 Date:
	 	 11/7/2011

	 Time:
	 	 8:00:16AM

 Schedule A: Performance Option 

CORVEL CORPORATION 
 Percentage of
shares earned by tranche 
 CY 2012, 2013, 2014 
  

							
	 	  	 CY 2012
	  	 CY 2013
	  	 CY 2014

	 EPS Target for each calendar year
	  	$[*.**] ***	  	$[*.**] ***	  	$[*.**] ***
	 Percentage of option grant for tranche (totals 100%)
	  	30%       	  	30%       	  	40%       
	 To earn 100% of tranche (105% of EPS target)
	  	$[*.**] ***	  	$[*.**] ***	  	$[*.**] ***
	 To earn 80% of tranche (100% of EPS target)
	  	$[*.**] ***	  	$[*.**] ***	  	$[*.**] ***
	 To earn 30% of tranche (95% of EPS target)
	  	$[*.**] ***	  	$[*.**] ***	  	$[*.**] ***
	 EPS at Zero (90% of EPS target)
	  	$[*.**] ***	  	$[*.**] ***	  	$[*.**] ***

  
 ***
Confidential treatment requested pursuant to Rule 24b-2 under the Securities Exchange Act of 1934. In accordance with Rule 24b-2, these confidential portions have been omitted from this exhibit and filed separately with the Securities and Exchange
Commission. 

 CORVEL CORPORATION 
 Shares earned by EPS number by Tranche year 
 CY 2012, 2013, 2014 

 

			
	 Option grant:
	 	12500 Shares option grant
	 CY 2012 Tranche
	 	  3750 30% of total grant
	 CY 2013 Tranche
	 	  3750 30% of total grant
	 CY 2014 Tranche
	 	  5000 40% of total grant

 

									
	 	  	CY 2012	 
	 	  	Percentage	 	 	Shares	 
	 $*.**
	  	 	0.0	% 	 	 	0	  
	 $*.**
	  	 	2.0	% 	 	 	75	  
	 $*.**
	  	 	4.0	% 	 	 	150	  
	 $*.**
	  	 	6.0	% 	 	 	225	  
	 $*.**
	  	 	8.0	% 	 	 	300	  
	 $*.**
	  	 	10.0	% 	 	 	375	  
	 $*.**
	  	 	12.0	% 	 	 	450	  
	 $*.**
	  	 	14.0	% 	 	 	525	  
	 $*.**
	  	 	16.0	% 	 	 	600	  
	 $*.**
	  	 	18.0	% 	 	 	675	  
	 $*.**
	  	 	20.0	% 	 	 	750	  
	 $*.**
	  	 	22.0	% 	 	 	825	  
	 $*.**
	  	 	24.0	% 	 	 	900	  
	 $*.**
	  	 	26.0	% 	 	 	975	  
	 $*.**
	  	 	28.0	% 	 	 	1,050	  
	 $*.**
	  	 	30.0	% 	 	 	1,125	  
	 $*.**
	  	 	33.3	% 	 	 	1,250	  
	 $*.**
	  	 	36.7	% 	 	 	1,375	  
	 $*.**
	  	 	40.0	% 	 	 	1,500	  
	 $*.**
	  	 	43.3	% 	 	 	1,625	  
	 $*.**
	  	 	46.7	% 	 	 	1,750	  
	 $*.**
	  	 	50.0	% 	 	 	1,875	  
	 $*.**
	  	 	53.3	% 	 	 	2,000	  
	 $*.**
	  	 	56.7	% 	 	 	2,125	  
	 $*.**
	  	 	60.0	% 	 	 	2,250	  
	 $*.**
	  	 	63.3	% 	 	 	2,375	  
	 $*.**
	  	 	66.7	% 	 	 	2,500	  
	 $*.**
	  	 	70.0	% 	 	 	2,625	  
	 $*.**
	  	 	73.3	% 	 	 	2,750	  
	 $*.**
	  	 	76.7	% 	 	 	2,875	  
	 $*.**
	  	 	80.0	% 	 	 	3,000	  
	 $*.**
	  	 	81.3	% 	 	 	3,050	  
	 $*.**
	  	 	82.7	% 	 	 	3,100	  
	 $*.**
	  	 	84.0	% 	 	 	3,150	  
	 $*.**
	  	 	85.3	% 	 	 	3,200	  
	 $*.**
	  	 	86.7	% 	 	 	3,250	  
	 $*.**
	  	 	88.0	% 	 	 	3,300	  
	 $*.**
	  	 	89.3	% 	 	 	3,350	  
	 $*.**
	  	 	90.7	% 	 	 	3,400	  
	 $*.**
	  	 	92.0	% 	 	 	3,450	  
	 $*.**
	  	 	93.3	% 	 	 	3,500	  
	 $*.**
	  	 	94.7	% 	 	 	3,550	  
	 $*.**
	  	 	96.0	% 	 	 	3,600	  
	 $*.**
	  	 	97.3	% 	 	 	3,650	  
	 $*.**
	  	 	98.7	% 	 	 	3,700	  
	 $*.**
	  	 	100.0	% 	 	 	3,750	  

 

									
	 	  	CY 2013	 
	 	  	Percentage	 	 	Shares	 
	 $*.**
	  	 	0.0	% 	 	 	0	  
	 $*.**
	  	 	1.9	% 	 	 	70	  
	 $*.**
	  	 	3.8	% 	 	 	141	  
	 $*.**
	  	 	5.6	% 	 	 	211	  
	 $*.**
	  	 	7.5	% 	 	 	281	  
	 $*.**
	  	 	9.4	% 	 	 	352	  
	 $*.**
	  	 	11.3	% 	 	 	422	  
	 $*.**
	  	 	13.1	% 	 	 	492	  
	 $*.**
	  	 	15.0	% 	 	 	563	  
	 $*.**
	  	 	16.9	% 	 	 	633	  
	 $*.**
	  	 	18.8	% 	 	 	703	  
	 $*.**
	  	 	20.6	% 	 	 	773	  
	 $*.**
	  	 	22.5	% 	 	 	844	  
	 $*.**
	  	 	24.4	% 	 	 	914	  
	 $*.**
	  	 	26.3	% 	 	 	984	  
	 $*.**
	  	 	28.1	% 	 	 	1,055	  
	 $*.**
	  	 	30.0	% 	 	 	1,125	  
	 $*.**
	  	 	32.9	% 	 	 	1,235	  
	 $*.**
	  	 	35.9	% 	 	 	1,346	  
	 $*.**
	  	 	38.8	% 	 	 	1,456	  
	 $*.**
	  	 	41.8	% 	 	 	1,566	  
	 $*.**
	  	 	44.7	% 	 	 	1,676	  
	 $*.**
	  	 	47.6	% 	 	 	1,787	  
	 $*.**
	  	 	50.6	% 	 	 	1,897	  
	 $*.**
	  	 	53.5	% 	 	 	2,007	  
	 $*.**
	  	 	56.5	% 	 	 	2,118	  
	 $*.**
	  	 	59.4	% 	 	 	2,228	  
	 $*.**
	  	 	62.4	% 	 	 	2,338	  
	 $*.**
	  	 	65.3	% 	 	 	2,449	  
	 $*.**
	  	 	68.2	% 	 	 	2,559	  
	 $*.**
	  	 	71.2	% 	 	 	2,669	  
	 $*.**
	  	 	74.1	% 	 	 	2,779	  
	 $*.**
	  	 	77.1	% 	 	 	2,890	  
	 $*.**
	  	 	80.0	% 	 	 	3,000	  
	 $*.**
	  	 	81.3	% 	 	 	3,047	  
	 $*.**
	  	 	82.5	% 	 	 	3,094	  
	 $*.**
	  	 	83.8	% 	 	 	3,141	  
	 $*.**
	  	 	85.0	% 	 	 	3,188	  
	 $*.**
	  	 	86.3	% 	 	 	3,234	  
	 $*.**
	  	 	87.5	% 	 	 	3,281	  
	 $*.**
	  	 	88.8	% 	 	 	3,328	  
	 $*.**
	  	 	90.0	% 	 	 	3,375	  
	 $*.**
	  	 	91.3	% 	 	 	3,422	  
	 $*.**
	  	 	92.5	% 	 	 	3,469	  
	 $*.**
	  	 	93.8	% 	 	 	3,516	  
	 $*.**
	  	 	95.0	% 	 	 	3,563	  
	 $*.**
	  	 	96.2	% 	 	 	3,609	  
	 $*.**
	  	 	97.5	% 	 	 	3,656	  
	 $*.**
	  	 	98.7	% 	 	 	3,703	  
	 $*.**
	  	 	100.0	% 	 	 	3,750	  

 

									
	 	  	CY 2014	 
	 	  	Percentage	 	 	Shares	 
	 $*.**
	  	 	0.0	% 	 	 	0	  
	 $*.**
	  	 	1.7	% 	 	 	83	  
	 $*.**
	  	 	3.3	% 	 	 	167	  
	 $*.**
	  	 	5.0	% 	 	 	250	  
	 $*.**
	  	 	6.7	% 	 	 	333	  
	 $*.**
	  	 	8.3	% 	 	 	417	  
	 $*.**
	  	 	10.0	% 	 	 	500	  
	 $*.**
	  	 	11.7	% 	 	 	583	  
	 $*.**
	  	 	13.3	% 	 	 	667	  
	 $*.**
	  	 	15.0	% 	 	 	750	  
	 $*.**
	  	 	16.7	% 	 	 	833	  
	 $*.**
	  	 	18.3	% 	 	 	917	  
	 $*.**
	  	 	20.0	% 	 	 	1,000	  
	 $*.**
	  	 	21.7	% 	 	 	1,083	  
	 $*.**
	  	 	23.3	% 	 	 	1,167	  
	 $*.**
	  	 	25.0	% 	 	 	1,250	  
	 $*.**
	  	 	26.7	% 	 	 	1,333	  
	 $*.**
	  	 	28.3	% 	 	 	1,417	  
	 $*.**
	  	 	30.0	% 	 	 	1,500	  
	 $*.**
	  	 	32.8	% 	 	 	1,639	  
	 $*.**
	  	 	35.6	% 	 	 	1,778	  
	 $*.**
	  	 	38.3	% 	 	 	1,917	  
	 $*.**
	  	 	41.1	% 	 	 	2,056	  
	 $*.**
	  	 	43.9	% 	 	 	2,194	  
	 $*.**
	  	 	46.7	% 	 	 	2,333	  
	 $*.**
	  	 	49.4	% 	 	 	2,472	  
	 $*.**
	  	 	52.2	% 	 	 	2,611	  
	 $*.**
	  	 	55.0	% 	 	 	2,750	  
	 $*.**
	  	 	57.8	% 	 	 	2,889	  
	 $*.**
	  	 	60.6	% 	 	 	3,028	  
	 $*.**
	  	 	63.3	% 	 	 	3,167	  
	 $*.**
	  	 	66.1	% 	 	 	3,306	  
	 $*.**
	  	 	68.9	% 	 	 	3,444	  
	 $*.**
	  	 	71.7	% 	 	 	3,583	  
	 $*.**
	  	 	74.4	% 	 	 	3,722	  
	 $*.**
	  	 	77.2	% 	 	 	3,861	  
	 $*.**
	  	 	80.0	% 	 	 	4,000	  
	 $*.**
	  	 	81.1	% 	 	 	4,056	  
	 $*.**
	  	 	82.2	% 	 	 	4,111	  
	 $*.**
	  	 	83.3	% 	 	 	4,167	  
	 $*.**
	  	 	84.4	% 	 	 	4,222	  
	 $*.**
	  	 	85.6	% 	 	 	4,278	  
	 $*.**
	  	 	86.7	% 	 	 	4,333	  
	 $*.**
	  	 	87.8	% 	 	 	4,389	  
	 $*.**
	  	 	88.9	% 	 	 	4,444	  
	 $*.**
	  	 	90.0	% 	 	 	4,500	  
	 $*.**
	  	 	91.1	% 	 	 	4,556	  
	 $*.**
	  	 	92.2	% 	 	 	4,611	  
	 $*.**
	  	 	93.3	% 	 	 	4,667	  
	 $*.**
	  	 	94.4	% 	 	 	4,722	  
	 $*.**
	  	 	95.6	% 	 	 	4,778	  
	 $*.**
	  	 	96.7	% 	 	 	4,833	  
	 $*.**
	  	 	97.8	% 	 	 	4,889	  
	 $*.**
	  	 	98.9	% 	 	 	4,944	  
	 $*.**
	  	 	100.0	% 	 	 	5,000	  

 
 

 Notwithstanding anything to the contrary in this Schedule A or the Stock Option Agreement to which this
Schedule A is attached, the Company shall have the right, in its sole discretion, with or without the consent of the Optionee, to amend this Schedule A to adjust any or all of the targets, dates and/or target EPS amounts as it deems equitable to
recognize unusual or non-recurring events, including, but not limited to the Company’s acquisition of another business entity or assets, a corporate merger or other consolidation, or the sale or discontinuation of significant business
operations or business units of the Company; changes in tax laws or accounting procedures; and any other extraordinary circumstances. 
  

 
 * Confidential treatment requested
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934. In accordance with Rule 24b-2, these confidential portions have been omitted from this exhibit and filed separately with the Securities and Exchange Commission. 

 Section 16 Insiders Discretionary Option Grant Program 

CorVel Corporation 
 Stock Option Agreement 
 A. The Board has adopted the Plan for the purpose
of retaining the services of selected Employees, non-employee members of the Board (or the board of directors of any Parent or Subsidiary) and consultants and advisors who provide services to the Company (or any Parent or Subsidiary). 

B. Optionee is to render valuable services to the Company (or a Parent or Subsidiary), and this Agreement is executed pursuant to, and is
intended to carry out the purposes of, the Plan in connection with the Company’s grant of an option to Optionee. 
 C. All
capitalized terms in this Agreement shall have the meaning assigned to them in the attached Appendix. 
 Now, therefore, it is
hereby agreed as follows: 
 1. Grant of Option. Subject to and upon the terms and conditions set forth in this
Agreement, Optionee is hereby granted, as of the Grant Date, an option to purchase the Option Shares. The Option Shares shall be purchasable from time to time during the option term at the Exercise Price. 

2. Option Term. This option shall expire at the close of business on the Expiration Date, unless sooner terminated in
accordance with this Agreement. 
 3. Limited Transferability. 

(a) During Optionee’s lifetime, this option shall be exercisable only by Optionee and shall not be assignable or transferable other
than by will, by the laws of descent and distribution following the Optionee’s death, or to any “Family Member” (as such term is defined in the General Instructions to Form S-8 (or any successor to such Instructions or such Form)
under the Securities Act), provided that Optionee may not receive any consideration for such transfer, the Family Member may not make any subsequent transfers other than by will or by the laws of descent and distribution and the Company receives
written notice of such transfer. This assigned portion may only be exercised by the person or persons who acquire a proprietary interest in the option pursuant to the assignment. The terms applicable to the assigned portion shall be the same as
those in effect for this option immediately prior to such assignment and shall be set forth in such documents issued to the assignee as the Company may deem appropriate. 
 (b) Should Optionee die while holding this option, then this option shall be transferred in accordance with Optionee’s will or the laws of inheritance. However, Optionee may designate one or more
persons as the beneficiary or beneficiaries of this option, and this option shall, in accordance with such designation, automatically be transferred to such 

 
beneficiary or beneficiaries upon Optionee’s death while holding this option. Such beneficiary or beneficiaries shall take the transferred option subject to all the terms and conditions of
this Agreement, including (without limitation) the limited time period during which this option may, pursuant to Paragraph 5, be exercised following Optionee’s death. 
 4. Exercisability. This option shall become exercisable in one or more installments as specified in the Grant Notice. As the option becomes exercisable for such installments, those
installments shall accumulate, and the option shall remain exercisable for the accumulated installments until the Expiration Date or sooner termination of the option term. 
 5. Effect of Cessation of Service. 
 (a) Should Optionee cease to be
a Service Provider for any reason (other than death, Permanent Disability or Misconduct) while this option is outstanding, then this option shall remain exercisable until the earlier of (i) the expiration of the three month period
commencing with the date of such cessation of Service Provider status or (ii) the Expiration Date. 
 (b) Should Optionee
cease to be a Service Provider by reason of Permanent Disability or death while this option is outstanding, then the option shall remain exercisable until the earlier of (i) the expiration of the twelve month period commencing with the
date of such cessation of Service Provider status or (ii) the Expiration Date. 
 (c) Should Optionee cease to be a Service
Provider due to termination for Misconduct, then this option shall terminate immediately. 
 (d) During the limited period of
post-service exercisability, this option may not be exercised in the aggregate for more than the number of Option Shares for which the option is exercisable at the time Optionee ceased to be a Service Provider. This option shall, immediately when
Optionee ceases to be a Service Provider for any reason, terminate with respect to any Option Shares for which this option is not otherwise at that time exercisable. Upon the expiration of the limited post-service exercise period or (if earlier)
upon the Expiration Date, this option shall terminate entirely. 
 6. Effect of Corporate Transaction. 

(a) This option, to the extent outstanding at the time of a Corporate Transaction but not otherwise fully exercisable, shall
automatically accelerate so that this option shall, immediately prior to the effective date of such Corporate Transaction, become exercisable for all of the Option Shares at the time subject to this option. However, this option shall not
become exercisable on such an accelerated basis, if and to the extent: (i) this option is, in connection with the Corporate Transaction, to be assumed by the successor corporation (or parent thereof) or to be replaced with a comparable option
to purchase shares of the capital stock of the successor corporation (or parent thereof) or (ii) this option is to be replaced with a cash incentive program of the successor corporation which preserves the spread existing at the time of the
Corporate Transaction on any Option Shares for which this option is not otherwise at that 

  
 2 

 
time exercisable (the excess of the Fair Market Value of those Option Shares over the aggregate Exercise Price payable for such shares) and provides for subsequent payout in accordance with the
same exercise schedule for those Option Shares set forth in the Grant Notice. 
 (b) Upon the consummation of the Corporate
Transaction, this option shall terminate, except to the extent assumed by the successor corporation (or parent thereof) in connection with the Corporate Transaction. 
 (c) If this option is assumed in connection with a Corporate Transaction, then this option shall be appropriately adjusted, immediately after such Corporate Transaction, to apply to the number and class
of securities which would have been issuable to Optionee as a result of the consummation of such Corporate Transaction had the option been exercised immediately prior to such Corporate Transaction, and appropriate adjustments shall also be made to
the Exercise Price, provided the aggregate Exercise Price shall remain the same. 
 (d) This Agreement shall not in any
way affect the right of the Company to adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 

7. Adjustment in Option Shares. Should any change be made to the Common Stock by reason of any stock split, reverse
stock split, stock dividend, recapitalization, combination of shares, exchange of shares, reorganization, merger, consolidation, split-up, spin-off, or other change affecting the outstanding Common Stock as a class without the Company’s receipt
of consideration, appropriate adjustments shall be made to (a) the total number and/or class of securities subject to this option and (b) the Exercise Price in order to reflect such change and thereby preclude a dilution or enlargement of
benefits hereunder. 
 8. Stockholder Rights. The holder of this option shall not have any stockholder rights with
respect to the Option Shares until such person shall have exercised the option in accordance with the provisions of Paragraph 9, paid the Exercise Price and become a holder of record of the purchased shares. 

9. Manner of Exercising Option. 
 (a) In order to exercise this option with respect to all or any part of the Option Shares for which this option is at the time exercisable, Optionee (or any other person or persons exercising the option)
must take the following actions: 
 (i) Execute and deliver to the Company (A) a Notice of Exercise, in
substantially the form attached hereto as Exhibit I, that specifies the number of Option Shares for which the option is being exercised and (B) any additional documents which the Committee may, in its discretion, deem advisable. 

  
 3 

 (ii) Pay the aggregate Exercise Price for the purchased shares in one or
more of the following forms: 
 (A) cash or check payable to the Company’s order; 

(B) shares of Common Stock held by Optionee for the requisite period necessary to avoid a charge to the Company’s
reported earnings and valued at Fair Market Value on the Exercise Date; or 
 (C) through a special sale and
remittance procedure pursuant to which Optionee is to provide irrevocable written instructions (1) to a brokerage firm to effect the immediate sale of the purchased shares and remit to the Company, out of the sale proceeds available on the
settlement date, an amount sufficient to cover the aggregate Exercise Price payable for the purchased shares plus all applicable Federal and state income and employment taxes required to be withheld by the Company by reason of such purchase and
(2) to the Company to deliver the certificates for the purchased shares directly to such brokerage firm in order to complete the sale transaction. 
 (iii) Furnish to the Company appropriate documentation that the person or persons exercising the option (if other than Optionee) have the right to exercise this option. 

(iv) Make appropriate arrangements with the Company (or Parent or Subsidiary employing or retaining Optionee) for the
satisfaction of all Federal, state and local income and employment tax withholding requirements applicable to the option exercise. 
 (b) If payment of the exercise price is made by means of the surrender of shares of Common Stock which are subject to certain restrictions, the number of shares of Common Stock issued upon the exercise of
the option equal to the number of shares of restricted stock surrendered shall be subject to the same restrictions as the restricted stock that was surrendered. 
 (c) Except to the extent the sale and remittance procedure specified in Paragraph 9(a)(ii)(C) is utilized in connection with the option exercise, payment of the option price for the purchased shares must
accompany the Notice of Exercise. 
 (d) Assuming Optionee does not sell the purchased shares of Common Stock on the Exercise
Date, as soon as practical after the Exercise Date, the Company shall either (i) issue to or on behalf of Optionee (or any other person or persons exercising this option) a certificate for the purchased Option Shares, with the appropriate
legends affixed thereto, or (ii) instruct the Company’s transfer agent to make a book-entry reflecting the purchase on its stockholder ledger. 

  
 4 

 (e) In no event may this option be exercised for any fractional shares. 

10. Tax Withholding. The Committee may, in its discretion and upon such terms and conditions as it may deem appropriate
(including the applicable safe-harbor provisions of Securities and Exchange Commission Rule 16b-3 or any successor rule or regulation) provide Optionee (if Optionee is an Employee) with the election to surrender previously acquired shares of Common
Stock or have shares withheld in satisfaction of the tax withholding obligations. To the extent necessary to avoid adverse accounting treatment, the number of shares that may be withheld for this purpose shall not exceed the minimum number needed to
satisfy the applicable income and employment tax withholding rules. If Common Stock is used to satisfy the Company’s tax withholding obligations, the shares of Common Stock shall have been held by Optionee for the requisite period necessary to
avoid a charge to the Company’s reported earnings and shall be valued at their Fair Market Value when the tax withholding is required to be made. 
 11. Compliance with Laws and Regulations. 
 (a) The exercise of this
option and the issuance of the Option Shares upon such exercise shall be subject to compliance by the Company and Optionee with all applicable requirements of law relating thereto and with all applicable regulations of any Stock Exchange (or the
Nasdaq Stock Market, if applicable) on which the Common Stock may be listed for trading at the time of such exercise and issuance. 
 (b) The inability of the Company to obtain approval from any regulatory body having authority deemed by the Company to be necessary to the lawful issuance and sale of any Common Stock pursuant to this
option shall relieve the Company of any liability with respect to the non-issuance or sale of the Common Stock as to which such approval shall not have been obtained. The Company, however, shall use reasonable efforts to obtain all such approvals.

 12. Successors and Assigns. Except to the extent otherwise provided in this Agreement, the provisions of this
Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and assigns and Optionee, Optionee’s assigns, the legal representatives, heirs and legatees of Optionee’s estate and any beneficiaries of this
option designated by Optionee. 
 13. Notices. Any notice required to be given or delivered to the Company under
the terms of this Agreement shall be in writing and addressed to the Company at its principal corporate offices. Any notice required to be given or delivered to Optionee shall be in writing and addressed to Optionee at the address indicated below
Optionee’s signature line on the Grant Notice. All notices shall be deemed effective upon personal delivery or three days after deposit in the U.S. mail, postage prepaid and properly addressed to the party to be notified. 

14. Construction. This Agreement and the option evidenced hereby are made and granted pursuant to the Plan and are in all
respects limited by and subject to the terms of the Plan. In the event of a conflict between the terms and conditions of the Plan and the terms and conditions of this Agreement, the terms and conditions of this Agreement shall prevail. All decisions
of the Committee with respect to any question or issue arising under the Plan or this Agreement shall be conclusive and binding on all persons having an interest in this option. 

  
 5 

 15. Governing Law. The interpretation, performance and enforcement of this
Agreement shall be governed by the laws of the State of Delaware without resort to its conflict-of-laws rules. 
 16. No
Employment/Service Contract. Nothing in this Agreement or in the Plan shall confer upon Optionee any right to continue to be a Service Provider of the Company (or any Parent or Subsidiary) for any period of specific duration or otherwise
interfere with or restrict in any way the rights of the Company (or such Parent or Subsidiary) or Optionee, which rights are hereby expressly reserved by each, to terminate Optionee’s Service Provider status at any time and for any reason
whatsoever, with or without cause. 

  
 6 

 EXHIBIT I 
 NOTICE OF EXERCISE OF STOCK OPTION 
 I hereby notify CorVel Corporation
(the “Company”) that I, _______________________, elect to purchase __________ shares of Common Stock of the Corporation (the “Purchased Shares”) at an option price of $ _________ per share (the “Option Price”) pursuant
to the option (the “Option”) granted to me on ____________. 
 My option was granted as a non-qualified stock option.
I will need to report taxable income at the time I exercise this Option and pay the corresponding withholding tax (the “Withholding Tax”) to the Corporation. The Withholding Tax is computed on the difference between the Option Price and
the Fair Market Value of the stock on the date I exercise the Option. 
 Concurrently with the delivery of the Exercise Notice
to the Chief Financial Officer of the Corporation, I shall hereby pay to the Corporation the Option Price and Withholding Tax for the Purchased Shares in accordance with the provisions of my agreement with the Corporation evidencing the Option and
shall deliver whatever additional documents may be required by such agreement as a condition for exercise. 
  

			
		  	
	  
	  	  

	 Date
	  	Optionee’s Signature
		
	 If applicable, print name in exact manner it
 is to appear on the stock certificate:
	  	
		  	  

		
	 Optionee’s Mailing Address:
	  	
		  	  

		  	
		  	  

		
	 Address to which certificate is to be sent, if
 different from address above:
	  	
		  	  

		  	
		  	  

		
	 Brokerage Account Information
	  	
		  	  

	 (Broker Name, Contact Info., Account #)
	  	
		  	  

		  	
		  	  

  
 A-1

 APPENDIX 

The following definitions shall be in effect under this Agreement: 

A. Agreement shall mean this Stock Option Agreement. 

B. Board shall mean the Board of Directors of the Company. 

C. Common Stock shall mean shares of the Company’s common stock, $0.0001 par value. 

D. Code shall mean the Internal Revenue Code of 1986, as amended. 

E. Committee shall mean a committee designated by the Board to administer the Plan, which initially shall be the
compensation committee of the Board. The Committee shall be comprised of at least two directors but not less than such number of directors as shall be required to permit awards granted under the Plan to qualify under Rule 16b-3 under the Securities
Act and Section 162(m) of the Code, and each member of the Committee shall be a “Non-Employee Director “ within the meaning of Rule 16b-3 under the Securities Act and an “Outside Director” within the meaning of
Section 162(m) of the Code. 
 F. Company shall mean CorVel Corporation, a Delaware corporation, or any
corporate successor which shall assume the Plan. 
 G. Corporate Transaction shall mean any of the following
transactions for which the approval of the Company’s stockholders is obtained: 
 (i) a merger or
acquisition in which the Company is not the surviving entity, except for a transaction the principal purpose of which is to change the state of the Company’s incorporation, 

(ii) the sale, transfer or other disposition of all or substantially all of the assets of the Company to any entity other
than a parent or subsidiary of the Company, or 
 (iii) any reverse merger in which the Company is the surviving
entity but in which fifty percent (50%) or more of the Company’s outstanding voting stock is transferred to holders different from those who held such fifty percent (50%) or greater interest immediately prior to such merger.

 H. Employee shall mean an individual for whom the Company or one or more of its Parent or Subsidiaries reports
his or her earnings on a Form W-2. 
 I. Exercise Date shall mean the date on which the option shall have been
exercised in accordance with Paragraph 9. 

  
 A-2

 J. Exercise Price shall mean the exercise price per Option Share as specified
in the Grant Notice. 
 K. Expiration Date shall mean the date on which the option expires as specified in the
Grant Notice. 
 L. Fair Market Value per share of Common Stock on any relevant date shall be determined in
accordance with the following provisions: 
 (i) If the Common Stock is at the time listed on the Nasdaq National
Market or the Nasdaq Capital Market, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question, as such price is reported by the National Association of Securities Dealers on the Nasdaq National
Market or the Nasdaq Capital Market and published in The Wall Street Journal. 
 (ii) If the Common Stock
is at the time listed on any Stock Exchange, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question on the Stock Exchange determined by the Committee to be the primary market for the Common
Stock, as such price is officially quoted in the composite tape of transactions on such exchange and published in The Wall Street Journal. 
 (iii) If the Common Stock is not listed on the Nasdaq National Market, Nasdaq Capital Market or a national securities exchange, the Fair Market Value shall be the average of the closing bid and ask prices
of the Common Stock on that day as reported by the Nasdaq bulletin board or any comparable system on that day. 

(iv) If the Common Stock is not traded included in the Nasdaq bulletin board or any comparable system, the Fair Market
Value shall be the average of the closing bid and ask prices on that day as furnished by any member of the National Association of Securities Dealers, Inc. selected from time to time by the Company for that purpose. 

(v) If the date in question is not a trading day, then the Fair Market Value shall be determined based on prices for the
trading day prior to the date in question. 
 M. Grant Date shall mean the date of grant of the option as specified
in the Grant Notice. 
 N. Grant Notice shall mean the Notice of Grant of Stock Option accompanying this Agreement,
pursuant to which Optionee has been informed of the basic terms of the option evidenced hereby. 
 O. Misconduct
shall mean any of the following: 
 (i) Optionee’s intentional misconduct or continuing gross neglect of
duties which materially and adversely affects the business and operations of the Company or any Parent or Subsidiary employing Optionee; 

  
 A-3

 (ii) Optionee’s unauthorized use or disclosure of (or attempt to use
or disclose) confidential information or trade secrets of the Company or any Parent or Subsidiary; or 
 (iii)
Optionee’s commission of an act involving embezzlement, theft, fraud, falsification of records, destruction of property or commission of a crime or other offense involving money or other property of the Company or any Parent or Subsidiary
employing Optionee. 
 The reasons for termination of Optionee as a Service Provider set forth in this subparagraph are not
intended to be an exclusive list of all acts or omissions which the Company (or any Parent or Subsidiary) may deem to constitute misconduct or other grounds for terminating Optionee (or any other individual). 

P. Non-Statutory Option shall mean an option not intended to satisfy the requirements of Code Section 422. 

Q. Notice of Exercise shall mean the notice of exercise in the form attached hereto as Exhibit I. 

R. Option Shares shall mean the number of shares of Common Stock subject to the option as specified in the Grant Notice.

 S. Optionee shall mean the person to whom the option is granted as specified in the Grant Notice. 

T. Parent shall mean any corporation (other than the Company) in an unbroken chain of corporations ending with the Company,
provided each such corporation in the unbroken chain (other than the Company) owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other
corporations in such chain. 
 U. Permanent Disability shall have the meaning assigned to “permanent and total
disability” as set forth in Code Section 22(e)(3). 
 V. Plan shall mean the CorVel Corporation Restated
Omnibus Incentive Plan (Formerly The Restated 1988 Executive Stock Option Plan). 
 W. Securities Act shall mean
the Securities Act of 1933, as amended. 
 X. Service Provider shall mean an individual who renders service on a
periodic basis to the Company, its Parent and/or any of its Subsidiaries as an Employee, a non-Employee member of the board of directors or a consultant or independent advisor. 
 Y. Stock Exchange shall mean the American Stock Exchange or the New York Stock Exchange, or any other national stock exchange. 

  
 A-4

 Z. Subsidiary shall mean any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company, provided such corporation (other than the last corporation in the unbroken chain) owns, at the time of determination, stock possessing fifty percent (50%) or more of the total combined
voting power of all classes of stock in one of the other corporations in such chain. For purposes of all Non-Statutory Option grants under the Plan and all Corporate Transaction provisions of the Plan, the term “Subsidiary” shall also
include any partnership, joint venture or other business entity of which the Company owns, directly or indirectly through another entity, more than a fifty percent (50%) interest in voting power, capital or profits. 

  
 A-5

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