Document:

NurLogic Design, Inc.  1997 Stock Incentive Plan

 
EXHIBIT 4.1

 
 
 
 
 
 
 
 
 
NURLOGIC DESIGN, INC. 
 
1997 STOCK INCENTIVE PLAN 
 
(As Adopted and Effective September 15, 1997) 

 
TABLE OF
CONTENTS 
 

	 	  	 	  	 Page

	
	 SECTION 1.
	  	 PURPOSE
	  	 1

	
	 SECTION 2.
	  	 DEFINITIONS
	  	 1

	
	 SECTION 3.
	  	 ADMINISTRATION
	  	 4

	
	 SECTION 4.
	  	 ELIGIBILITY
	  	 4

	
	 SECTION 5.
	  	 STOCK SUBJECT TO PLAN
	  	 5

	
	 SECTION 6.
	  	 TERMS AND CONDITIONS OF AWARDS OR SALES
	  	 5

	
	 SECTION 7.
	  	 ADDITIONAL TERMS AND CONDITIONS OF RESTRICTED
	  	 6

	
	 SECTION 8.
	  	 TERMS AND CONDITIONS OF OPTIONS
	  	 7

	
	 SECTION 9.
	  	 ADJUSTMENT OF SHARES
	  	 9

	
	 SECTION 10.
	  	 WITHHOLDING TAXES
	  	 9

	
	 SECTION 11.
	  	 ASSIGNMENT OR TRANSFER OF AWARDS
	  	 10

	
	 SECTION 12.
	  	 LEGAL REQUIREMENTS
	  	 10

	
	 SECTION 13.
	  	 NO EMPLOYMENT RIGHTS
	  	 10

	
	 SECTION 14.
	  	 DURATION AND AMENDMENTS
	  	 10

	
	 SECTION 15.
	  	 EXECUTION
	  	 11

 

i 

 
NURLOGIC
DESIGN, INC. 
1997 STOCK INCENTIVE PLAN 
 
(As Adopted and Effective September 15, 1997) 
 
SECTION 1.    PURPOSE. 
 
The purpose of the Plan is to offer selected employees,
directors and consultants an opportunity to acquire a proprietary interest in the success of the Company, or to increase such interest, to encourage such selected persons to remain in the employ of the Company and to attract new employees with
outstanding qualifications. The Plan seeks to achieve this purpose by providing for Awards in the form of Restricted Shares and Options (which may constitute Incentive Stock Options or Nonstatutory Stock Options) as well as the direct award or sale
of Shares of the Company’s Common Stock. 
 
SECTION
2.    DEFINITIONS. 
 
(a)    “Award” shall mean any award of an Option, Restricted Share or other right under the Plan. 
 
(b)    “Board of Directors” shall mean the Board of Directors of the Company, as constituted from
time to time. 
 
(c)    “Change in Control” shall be defined by the Committee and provided for in the Stock Purchase Agreements, Stock Option Agreements and Stock Award Agreements. The term ‘Change in
Control’s shall not include a transaction the sole purpose of which is to change the state of the Company’s incorporation. 
 
(d)    “Code” shall mean the Internal Revenue Code of 1986, as amended. 
 
(e)    “Committee” shall
mean a committee of the Board of Directors which is authorized to administer the Plan under Section 3. 
 
(f)    “Common-Law Employee” means an individual paid from W-2 Payroll of the Company or a
Subsidiary. If, during any period, the Company (or Subsidiary, as applicable) has not treated an individual as a Common-Law Employee and, for that reason, has not paid such individual in a manner which results in the issuance of a Form W-2 and
withheld taxes with respect to him or her, then that individual shall not be an eligible Employee for that period, even if any person, court of law or government agency determines, retroactively, that that individual is or was a Common-Law Employee
during all or any portion of that period. 
 
(g)    “Company” shall mean Nurlogic Design, Inc., a California corporation. 
 
(h)    “Employee” shall mean (i) any individual who is a Common-Law Employee of the Company or of a
Subsidiary, (ii) a member of the Board of Directors, including (without limitation) an Outside Director, or an affiliate of a member of the Board of Directors, (iii) a member of the board of directors of a Subsidiary, or (iv) an independent
contractor who performs services for the Company or a Subsidiary. Service as a member of the Board of Directors, a member of the board of directors of a Subsidiary or an independent contractor shall be considered employment for all purposes of the
Plan except the second sentence of Section 4(a). 
 

 
(i)    “Exchange Act” means the Securities and Exchange Act of 1934, as amended. 
 
(j)    “Exercise Price” shall mean the amount for which one Share may be purchased upon exercise of
an Option, as specified by the Committee in the applicable Stock Option Agreement. 
 
(k)    “Fair Market Value” means the market price of Shares, determined by the Committee as follows: 
 
(i)    If the Shares were traded over-the-counter on the date in question but were not
traded on the Nasdaq Stock Market or the Nasdaq National Market System, then the Fair Market Value 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 Shares are quoted or, if the Shares are not quoted on any such system, by the ‘Pink Sheets’ published by the National Quotation Bureau, Inc.; 
 
(ii)    If the Shares were traded over-the-counter on the date in question and were
traded on the Nasdaq Stock Market or the Nasdaq National Market System, then the Fair Market Value shall be equal to the last-transaction price quoted for such date by the Nasdaq Stock Market or the Nasdaq National Market; 
 
(iii)    If the Shares were traded on a
stock exchange on the date in question, then the Fair Market Value shall be equal to the closing price reported by the applicable composite transactions report for such date; 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. 
 
(l)    “Incentive Stock Option” or “ISO” shall mean an employee incentive stock
option described in Code section 422 (b). 
 
(m)    “Nonstatutory Option” or “NSO” shall mean an employee stock option that is not an ISO. 
 
(n)    “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). 
 
(o)    “Option” shall mean an Incentive Stock Option or Nonstatutory Option granted under the Plan and entitling the holder to purchase Shares. 
 
(p)    “Optionee” shall
mean an individual or estate who holds an Option. 
 
(q)    “Outside Director” shall mean a member of the Board who is not a Common-Law Employee of the Company or a Subsidiary. 
 

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(r)    “Participant” shall means an individual or estate who holds an Award. 
 
(s)    “Plan” shall mean this Nurlogic Design, Inc., 1997 Stock incentive Plan. 
 
(t)    “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. 
 
(u)    “Restricted Share” shall mean a Share sold or granted to an eligible Employee which is
nontransferable and subject to substantial risk of forfeiture until restrictions lapse. 
 
(v)    “Service” shall mean service as an Employee. 
 
(w)    “Share” shall mean one share of Stock, as adjusted in accordance with Section 9 (if
applicable). 
 
(x)    “Stock” shall mean the common stock of the Company. 
 
(y)    “Stock Award 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 Share. 
 
(z)    “Stock Option Agreement” shall mean the agreement between the Company and an Optionee which
contains the terms, conditions and restrictions pertaining to his or her Option. 
 
(aa)    “Stock Purchase Agreement” shall mean the agreement between the Company and an Offeree who acquires Shares under the Plan which contains the terms,
conditions and restrictions pertaining to the acquisition of such Shares. 
 
(bb)    “Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last
corporation in the unbroken chain 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 Subsidiary on a date after the
adoption of the Plan shall be considered a Subsidiary commencing as of such date. 
 
(cc)    “Total and Permanent Disability” means that the Optionee is unable to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment. 
 
(dd)    “W-2 Payroll” means whatever mechanism or procedure that the Company or a Subsidiary utilizes to pay any individual which results in the issuance of Form W-2 to the individual. “W-2
Payroll” does not include any mechanism or procedure which results in the issuance of any form other than a Form W-2 to an individual, including, but not limited to, any Form 1099 which may be issued to an independent contractor, an agency
employee or a consultant. Whether a mechanism or procedure qualifies as a “W-2 Payroll” shall be determined in the absolute discretion of the Company (or Subsidiary, as applicable), and the Company or Subsidiary determination shall be
conclusive and binding on all persons. 
 

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SECTION
3.    ADMINISTRATION. 
 
(a)    Committee Membership.    The Plan shall be administered by the Committee appointed by the Board of Directors. In the event the Company’s Shares become publicly traded, the
Committee shall be comprised solely of two or more Outside Directors (although Committee functions may be delegated to officers to the extent the awards relate to persons who are not subject to the reporting requirements of Section 16 of the
Exchange Act). If no Committee has been appointed, the entire Board shall constitute the Committee. 
 
(b)    Committee Procedures.    The Board of Directors shall designate one of the members
of the Committee as chairperson. 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. 
 
(c)    Committee Responsibilities.    The Committee has and may exercise such power and authority as may be necessary or appropriate for the Committee to carry out its functions as
described in the Plan. The Committee has authority in its discretion to determine eligible Employees to whom, and the time or times at which, Awards may be granted and the number of Shares subject to each Award. Subject to the express provisions of
the respective Award agreements (which need not be identical) and to make all other determinations necessary or advisable for Plan administration. The Committee has authority to prescribe, amend, and rescind rules and regulations relating to the
Plan. All interpretations, determinations, and actions by the Committee will be final, conclusive, and binding upon all persons. 
 
(d)    Committee Liability.    No member of the Board or the Committee will be liable for
any action or determination made in good faith by the Committee with respect to the Plan or any Award made under the Plan. 
 
(e)    Financial Reports.    To the extent required by applicable law, and not less often
than annually, the Company shall furnish to Offerees, Optionees and Shareholders who have received Stock under the Plan its financial statements including a balance sheet regarding the Company’s financial condition and results of operations,
unless such Offerees, Optionees or Shareholders have duties with the Company that assure them access to equivalent information. Such financial statements need not be audited. 
 
SECTION 4.    ELIGIBILITY. 
 
(a)    General Rule.    Only Employees, as defined in Section
2(h), shall be eligible for designation as Participants by the Committee. In addition, only individuals who are employed as Common-Law Employees by the Company or a Subsidiary shall be eligible for the grant of ISOs. 
 
(b)    Ten-Percent
Shareholders.    An Employee who owns more than ten percent (10%) of the total combined voting power of all classes of outstanding stock of the Company or any of its Subsidiaries shall not be eligible for designation as an
Offeree or Optionee unless (i) the Exercise Price for an ISO (and a NSO to the extent required by applicable law) is at least one hundred ten percent (110%) of the Fair Market Value of a Share on the date of grant, (ii) the Purchase Price of Shares
is at least one hundred percent (100%) of the Fair Market Value of a Share on the date of grant, and (iii) in the case of an ISO, such ISO by its terms is not exercisable after the expiration of five years from the date of grant. 
 

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(c)    Attribution Rules.    For purposes of Subsection (b) above, in determining stock ownership, an Employee shall be deemed to own the stock owned, directly or indirectly, by or for
his 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 shareholders, partners or
beneficiaries. Stock with respect to which such Employee holds an Option shall not be counted. 
 
(d)    Outstanding Stock.    For purposes of Subsection (b) 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. Subject to Sections 5(b) and 9 of the Plan, the aggregate number of Shares which may be issued or transferred pursuant to an Award under the Plan shall not exceed One Million Two Hundred Thousand (1,200,000)
Shares, and the number of shares that may be issued or transferred during any 12-month period to any eligible Employee pursuant to an Award unrelated to an Option shall not exceed Five Hundred Thousand (500,000) Shares. In any event, (i) the number
of Shares which are subject to Awards 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; and (ii) the number of Shares which are subject to Awards or
other rights outstanding at any time under the Plan or otherwise shall not exceed the limitation imposed by Section 260.140.45 of the Code of Regulations of the California Commissioner of Corporations. 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)    Additional Shares.    In the event that any outstanding Option or other right for
any reason expires or is canceled or otherwise terminated, the Shares allocable to the unexercised portion of such Option or other right shall again be available for the purposes of the Plan. If a Restricted Share is forfeited before any dividends
have been paid with respect to such Restricted Share, then such Restricted Share shall again become available for award under the Plan. 
 
SECTION 6.    TERMS AND CONDITIONS OF AWARDS OR SALES. 
 
(a)    Stock Purchase Agreement.    Each award or sale of
Shares under the Plan (other than upon exercise of an Option) shall be evidenced by a Stock Purchase Agreement between the Offeree and the Company. Such award or sale 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 Purchase Agreement. The provisions of the various Stock Purchase Agreements entered into under the
Plan need not be identical. 
 
(b)    Duration of Offers.    Any right to acquire Shares under the Plan (other than an Option) shall automatically expire if not exercised by the Offeree within 30 days after the grant
of such right was communicated to the Offeree by the Committee. 
 

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(c)    Purchase Price.    The Purchase Price of Shares to be offered under the Plan shall not be less than eighty-five percent (85%) of the Fair Market Value of a Share on the date of
grant (100% for 10% shareholders), except as otherwise provided in Section 4(b). Subject to the preceding sentence, the Purchase Price shall be determined by the Committee in its sole discretion. The Purchase Price shall be payable in a form
described in Subsection (d) below. 
 
(d)    Payment for Shares.    The entire 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 below. Notwithstanding any other provision of the Plan, Shares may, in the discretion of the Committee, be awarded under the Plan in consideration of Services rendered to the Company or a Subsidiary prior to the Award.
Permissible forms of payment, in addition to cash, are: 
 
(i)    Surrender of Stock.    To the extent that a Purchase Option Agreement so provides, payment may be made all or in part with Shares which have already been owned by the Offeree or
the Offeree’s representative for any time period specified by the Committee and which are surrendered to the Company in good form for transfer. Such Shares shall be valued at their Fair Market Value on the date when the new Shares are purchased
under the Plan. 
 
(ii)    Promissory Notes.    To the extent that a Stock Purchase Agreement so provides, payment may be made all or in part with a full recourse promissory note executed by the Offeree.
The interest rate and other terms and conditions of such note shall be determined by the Committee. The Committee may require that the Offeree pledge his or her Shares to the Company for the purpose of securing the payment of such note. In no event
shall the stock certificate(s) representing such Shares be released to the Offeree until such note is paid in full. 
 
(iii)    Cashless Exercise.    To the extent that a Stock Purchase Agreement so provides
and a public market for the Shares exists, 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. 
 
(iv)    Other Forms of Payment.    To the extent provided in the Stock Purchase Agreement, payment may be made in any other form that is consistent with applicable laws, regulations and
rules, including payment for past services. 
 
(e)    Exercise of Awards on Termination of Service.    Each Stock Award Agreement shall set forth the extent to which the recipient shall have the right to exercise the Award following
termination of the recipient’s Service with the Company and its Subsidiaries. Such provisions shall be determined in the sole discretion of the Committee, need not be uniform among all the Awards issued pursuant to the Plan, and may reflect
distinctions based on the reasons for termination of employment. 
 
SECTION 7.    ADDITIONAL TERMS AND CONDITIONS OF RESTRICTED. 
 
(a)    Form and Amount of Award.    Each Stock Award Agreement shall specify the number of
Shares that are subject to the Award. Restricted Shares may be awarded in combination with NSOs and such an Award may provide that the Restricted Shares will be forfeited in the event that the related NSOs are exercised. 
 

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(b)    Exercisability.    Each Stock Award Agreement shall specify the conditions upon which Restricted Shares shall become vested, in full or in installments. 
 
(c)    Effect of Change in
Control.    The Committee may determine at the time of making an Award or thereafter, that such Award shall become fully vested in the event that a Change in Control occurs with respect to the Company. 
 
(d)    Voting
Rights.    Holders of Restricted Shares awarded under the Plan shall have the same voting, dividend and other rights a the Company’s other stockholders. A Stock Award Agreement, however, may require that the holders
invested 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. Such additional Restricted
Shares shall not reduce the number of Shares available under Section 5. 
 
SECTION 8.    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 provisions of the various Stock Option Agreements entered into under the Plan need not be identical. 
 
(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 9. The Stock Option Agreement shall also specify whether the Option is an ISO or a Nonstatutory Option. 
 
(c)    Exercise
Price.    Each Stock Option Agreement shall specify the Exercise Price. The Exercise Price of an ISO shall not be less than one hundred percent (100%) of the Fair Market Value of a Share on the date of grant, except as
otherwise provided in Section 4(b). To the extent required by applicable law and except as otherwise provided in Section 4(b), the Exercise Price of a Nonstatutory Option shall not be less than eighty-five percent (85%) of the Fair Market Value of a
Share on the date of grant. Subject to the preceding two sentences, the Exercise Price under any Option shall be determined by the Committee in its sole discretion. The Exercise Price shall be payable in a form described in Subsection (h) below.

 
(d)    Exercisability.    Each Stock Option Agreement shall specify the date when all or any installment of the Option is to become exercisable. To the extent required by applicable law,
an Option shall become exercisable no less rapidly than the rate of 20% per year for each of the first five years from the date of grant. Subject to the preceding sentence, the exercisability of any Option shall be determined by the Committee in its
sole discretion. 
 
(e)    Effect of Chance in Control.    The Committee may determine, at the time of granting an Option or thereafter, that such Option shall become fully exercisable as to all Shares
subject to such Option in the event that a Change in Control occurs with respect to the Company. 
 
(f)    Term.    The Stock Option Agreement shall specify the term of the Option. The term shall not exceed ten years from the date of grant (or five (5)
years for ten percent (10%) shareholders as provided in Section 4(b)). Subject to the preceding sentence, the Committee at its sole discretion shall determine when an Option is to expire. 
 

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(g)    Exercise of Options on Termination of Service.    Each Option 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. 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 employment. Notwithstanding the foregoing, to the extent required by applicable law, each Option shall provide that the Optionee shall have the right to exercise the vested portion of any Option held at termination for
at least 30 days following termination of Service with the Company for any reason, and that the Optionee shall have the right to exercise the Option for at least six months if the Optionee’s Service terminates due to death or Disability.

 
(h)    Payment of Option
Shares.    The entire Exercise 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 below: 
 
(i)    Surrender of
Stock.    To the extent that a Stock Option Agreement so provides, payment may be made all or in part with Shares which have already been owned by the Optionee or the Optionee’s representative for any time period
specified by the Committee and which are surrendered to the Company in good form for transfer. Such Shares shall be valued at their Fair Market Value on the date when the new Shares are purchased under the Plan. 
 
(ii)    Promissory
Notes.    To the extent that a Stock Option Agreement or Stock Purchase Agreement so provides, payment may be made all or in part with a full recourse promissory note executed by the Optionee or Offeree. The interest rate and
other terms and conditions of such note shall be determined by the Committee. The Committee may require that the Optionee or Offeree pledge his or her Shares to the Company for the purpose of securing the payment of such note. In no event shall the
stock certificate(s) representing such Shares be released to the Optionee or Offeree until such note is paid in full. 
 
(iii)    Cashless Exercise.    To the extent that a Stock Option Agreement so provides and
a public market for the Shares exists, 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. 
 
(iv)    Other Forms of Payment.    To the extent provided in the Stock Option Agreement, payment may be made in any other form that is consistent with applicable laws, regulations and
rules. 
 
(i)    No Rights
as a Shareholder.    An Optionee, or a transferee of an Optionee, shall have no rights as a shareholder with respect to any Shares covered by an Option until the date of the issuance of a stock certificate for such Shares.

 
(j)    Modification,
Extension and Assumption of Options.    Within the limitations of the Plan, the Committee may modify, extend or assume outstanding Options or may accept the cancellation of outstanding Options (whether granted by the Company
or another issuer) 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 for other consideration. 
 

8 

 
SECTION
9.    ADJUSTMENT OF SHARES. 
 
(a)    General.    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 value of Shares, a combination or consolidation of the outstanding Stock into a lesser number of Shares, a recapitalization, a reclassification or a similar occurrence, the Committee shall make
appropriate adjustments in one or more of (i) the number of Shares available for future Awards under Section 5, (ii) the number of Shares covered by each outstanding Option or Purchase Agreement or (iii) the Exercise Price or Purchase Price under
each outstanding Option or Stock Purchase Agreement. 
 
(b)    Reorganizations.    In the event that the Company is a party to a merger or reorganization, outstanding Options shall be subject to the agreement of merger or reorganization.

 
(c)    Reservation of
Rights.    Except as provided in this Section 9, an Optionee or an Offeree shall have no rights by reason of (i) any subdivision or consolidation of shares of stock of any class, (ii) the payment of any dividend or (iii) 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, Exercise Price or Purchase Agreement of Shares subject to an Option or Stock Purchase Agreement. The grant of an Award 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 10.    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 Committee
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. Any payment of taxes by assigning
Shares to the Company may be subject to restrictions, including any restrictions required by rules of any federal or state regulatory body or other authority. 
 
(c)    Cashless Exercise/Pledge.    The Committee may provide that if Company Shares are
publicly traded at the time of exercise, arrangements may be made to meet the Optionee’s withholding obligation by cashless exercise or pledge. 
 

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(d)    Other Forms of Payment.    The Committee may permit such other means of tax withholding as it deems appropriate. 
 
SECTION 11.    ASSIGNMENT OR TRANSFER OF AWARDS. 
 
(a)    General.    An Award granted under the Plan shall not be anticipated, assigned, attached, garnished, optioned, transferred or made subject to any creditor’s process, whether
voluntarily, involuntarily or by operation of law, except as approved by the Committee. Notwithstanding the foregoing, ISOs may not be transferable. Also notwithstanding the foregoing, while the Shares are subject to California Corporations Code
§25102(o), Offerees and Optionees may not transfer their rights hereunder except by will, beneficiary designation or the laws of descent and distribution, and (ii) any rights of repurchase in favor of the Company shall take into account the
provisions of Department of Corporations Regulation Section 260.140.41 or 260.140.42, as applicable. 
 
(b)    Trusts.    Neither this Section 11 nor any other provision of the Plan shall
preclude a Participant from transferring or assigning Restricted Shares to (a) the trustee of a trust that is revocable by such Participant alone, both at the time of the transfer or assignment and at all times thereafter prior to such
Participant’s death, or (b) the trustee of any other trust to the extent approved by the Committee in writing. A transfer or assignment of Restricted Shares from such trustee to any other person than such Participant shall be permitted only to
the extent approved in advance by the Committee in writing, and Restricted Shares held by such trustee shall be subject to all the conditions and restrictions set forth in the Plan and in the applicable Stock Award Agreement, as if such trustee were
a party to such Agreement. 
 
SECTION
12.    LEGAL 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. 
 
SECTION 13.    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.

 
SECTION 14.    DURATION AND AMENDMENTS.

 
(a)    Term of the
Plan.    The Plan, as set forth herein, shall become effective on the date of its adoption by the Board of Directors, subject to the approval of the Company’s shareholders. In the event that the shareholders fail to
approve the Plan within twelve (12) months after its adoption by the Board of Directors, any grants already made shall be null and void, and no additional grants shall be made after such date. The Plan shall terminate automatically ten (10) years
after its adoption by the Board of Directors and may be terminated on any earlier date pursuant to Subsection (b) below. 
 

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(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 right or Option granted
before amendment of the Plan shall not be materially altered, or impaired adversely, by such amendment, except with consent of the person to whom the right or Option was granted. An amendment of the Plan shall be subject to the approval of the
Company’s shareholders only to the extent required by applicable laws, regulations or rules including the rules of any applicable exchange. 
 
(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 Shares previously issued or any Option previously granted under the
Plan. 
 
SECTION 15.    EXECUTION.

 
To record the adoption of the Plan by the
Company, the Board of Directors has caused its authorized officer to execute the same, to be effective as of September 15, 1997. 
 
 

	 NURLOGIC DESIGN, INC.

	
	 By
	 	 /s/    DAVID A. SMITH

	 As Its
	 	 Corporate Secretary

 

11Form of Incentive Stock Option Agreement

 
EXHIBIT 4.1.1

 
THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN
REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE, AND MAY BE OFFERED AND SOLD ONLY IF REGISTERED AND QUALIFIED PURSUANT TO THE RELEVANT PROVISIONS OF FEDERAL AND STATE SECURITIES LAWS OR IF THE COMPANY IS
PROVIDED AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION AND QUALIFICATION UNDER FEDERAL AND STATE SECURITIES LAWS IS NOT REQUIRED. 
 
 
NURLOGIC DESIGN, INC. 
1997 STOCK INCENTIVE PLAN 
 
INCENTIVE STOCK OPTION AGREEMENT 
 
NurLogic Design, Inc., a California corporation (the “Company”), hereby grants an Option to purchase shares of its common stock
(“Shares”) to the Optionee named below. The terms and conditions of the Option are set forth in this cover sheet, in the attachment and in the Company’s 1997 Stock Incentive Plan (the “Plan”). 
 
 

	
	 Date of
Grant:                                       
                                        
                                        
                                        
                                        
                              

	
	 Name of
Optionee:                                      
                                        
                                        
                                        
                                        
                      

	
	 Optionee’s Social Security
Number:                                       
                                        
                                        
                                        
                             

	
	 Number of Shares Covered by
Option:                                       
                                        
                                        
                                        
                        

	
	 Exercise Price per
Share: $                                      
                                        
                                        
                                        
                                        
       

	 [must be at least 100% fair market value on Date of
Grant]

	
	 Vesting Start
Date:                                       
                                        
                                        
                                        
                                        
                     

 

	 ̈	 	Check here if Optionee is a 10% owner (so that exercise price must be 110% of fair market value and term will not exceed 5 years). 

 
 
By signing this cover sheet, you agree to all of the terms and conditions described in the attached Agreement and in the Plan, a copy of which is also attached. 
 
 

	 Optionee:
	  	                                      
                                        
                                        
                                        
                                        
                                    

	 	  	 (Signature)

	
	 Company:
	  	                                      
                                        
                                        
                                        
                                        
                                    

	 	  	 (Signature)

	
	 Title:
	  	                                      
                                        
                                        
                                        
                                        
                                    

 

 
NURLOGIC
DESIGN, INC. 
1997 STOCK INCENTIVE PLAN 
 
INCENTIVE STOCK OPTION AGREEMENT 
 

	
	 Incentive Stock Option
	  	 This Option is intended to be an incentive stock option under section 422 of the Internal Revenue Code and will be
interpreted accordingly.

	
	 Vesting
	  	 Your Option vests annually over a five year period beginning one year after the Vesting Start Date as shown on the cover
sheet. Accordingly, this Option vests at a rate of 20% of the Shares covered by the Option per year from the Vesting Start Date. The number of Shares which vest under this Option at the Exercise Price shall be equal to the product of the number of
full years of your continuous employment with the Company (“Service)(including any approved leaves of absence) from the Vesting Start Date times the number of Shares covered by this Option times .20. Notwithstanding the above, no Shares will
vest until you have performed twelve months of Service from the Vesting Start Date. The resulting number of Shares will be rounded to the nearest whole number. No additional Shares will vest after your Service has terminated for any
reason.

	
	 	  	 You should note that you may exercise the Option prior to vesting. In that case, the Company has a right to repurchase
the unvested shares at the original exercise price if you terminate employment before vesting in all shares you purchased. Also, if you exercise before vesting, you should consider making an 83(b) election. Please see the attached Tax Summary. The
83(b) election must be filed within 30 days of the date you exercise.

	
	 Term
	  	 Your Option will expire in any event at the close of business at Company headquarters on the day before the tenth
anniversary (fifth anniversary for a 10% owner) of the Date of Grant, as shown on the cover sheet. (It will expire earlier if your Service terminates, as described below.)

	
	 Regular Termination
	  	 If your Service terminates for any reason except death or Disability, your Option will expire at the close of business at
Company headquarters on the 30th day after your termination date. During that 30-day period, you may exercise that portion of your Option that was vested on your termination date.

	
	 Death
	  	 If you die while in Service with the Company, your Option will expire at the close of business at Company headquarters on
the date six months after the date of death. During that six-month period, your estate or heirs may exercise that portion of your Option that was vested on the date of death.

	
	 Disability
	  	 If your Service terminates because of your Disability, your Option will expire at the close of business at Company
headquarters on the date six months after your termination date. (However, if your Disability is not expected to result in death or to last for a continuous period of at least 12 months, your Option will be eligible for ISO tax treatment only if it
is exercised within three months following the termination of your Service.) During that six-month period, you may exercise that portion of your Option that was vested on the date of your Disability.

	
	 	  	 “Disability” means that you are unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment.

	
	 Leaves of Absence
	  	 For purposes of this Option, your Service does not terminate when you go 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, your Service will be treated as terminating 90 days after you went on
leave, unless your right to return to active work is guaranteed by law or by a contract. Your Service terminates in any event when the approved leave ends unless you immediately return to active work. The Company determines which leaves count for
this purpose, and when your Service terminates for all purposes under the Plan. The Company also determines the extent to which you may exercise the vested portion of your Option during a leave of absence.

	
	 Notice of Exercise
	  	 When you wish to exercise this Option, you must execute Exhibit A (and, if exercise is prior to vesting, you must also
execute Exhibits B and D). Your exercise will be effective when it is received by the Company. If someone else wants to exercise this Option after your death, that person must prove to the Company’s satisfaction that he or she is entitled to do
so.

	
	 Form of Payment
	  	 When you submit Exhibits A, you must include payment of the Exercise Price for the Shares you are purchasing. Payment may
be made in one (or a combination) of the following forms:

	
	 	  	 Your personal check, a cashier’s check or a money order.

	
	 	  	 Shares which you have owned for six months and which are surrendered to the Company. The value of the Shares, determined
as of the effective date of the Option exercise, will be applied to the Exercise Price.

	
	 	  	 To the extent that a public market for the Shares exists as determined by the Company, 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.

	
	 	  	 Any other form of legal consideration approved by the Committee.

	
	 Withholding Taxes
	  	 You will not be allowed to exercise this Option unless you make acceptable arrangements to pay any withholding or other
taxes that may be due as a result of the Option exercise or the sale of Shares acquired upon exercise of this Option.

	
	 Restrictions on Exercise and Resale
	  	 By signing this Agreement, you agree not to exercise this Option or sell any Shares acquired upon exercise of this Option
at a time when applicable laws, regulations or Company or underwriter trading policies prohibit exercise or sale. In particular, the Company shall have the right to designate one or more periods of time, each of which shall not exceed 180 days in
length, during which this Option shall not be exercisable if the Company determines (in its sole discretion) that such limitation on exercise could in any way facilitate a lessening of any restriction on transfer pursuant to the Securities Act or
any state securities laws with respect to any issuance of securities by the Company, facilitate the registration or qualification of any securities by the Company under the Securities Act or any state securities laws, or facilitate the perfection of
any exemption from the registration or qualification requirements of the Securities Act or any applicable state securities laws for the issuance or transfer of any securities. Such limitation on exercise shall not alter the vesting schedule set
forth in this Agreement other than to limit the periods during which this Option shall be exercisable.

	
	 	  	 If the sale of Shares under the Plan is not registered under the Securities Act of 1933, as amended (the “Securities
Act”), but an exemption is available which requires an investment or other representation, you shall represent and agree at the time of exercise that the Shares being acquired upon exercise of this Option are being acquired for investment, and
not with a view to the sale or distribution thereof, and shall make such other representations as are deemed necessary or appropriate by the Company and its counsel.

	
	 The Company’s Right of First Refusal
	  	 In the event that you propose to sell, pledge or otherwise transfer to a third party any Shares acquired under this
Agreement, or any interest in such Shares, the Company shall have the “Right of First Refusal” with respect to all (and not less than all) of such Shares. If you desire to transfer Shares acquired under this Agreement, you must give a
written “Transfer Notice” to the Company describing fully the proposed transfer, including the number of Shares proposed to be transferred, the proposed transfer price and the name and address of the proposed transferee. The Transfer
Notice shall be signed both by you and by the proposed transferee and must constitute a binding commitment of both parties to the transfer of the Shares.

	
	 	  	 The Company and its assignees shall have the right to purchase all, and not less than all, of the Shares on the terms
described in the Transfer Notice (subject, however, to any change in such terms permitted in the next paragraph) by delivery of a Notice of Exercise of the Right of First Refusal within 30 days after the date when the Transfer Notice was received by
the Company. The Company’s rights under this Subsection shall be freely assignable, in whole or in part.

	
	 	  	 If the Company fails to exercise its Right of First Refusal within 30 days after the date when it received the Transfer
Notice, you may, not later than six months following receipt of the Transfer Notice by the Company, conclude a transfer of the Shares subject to the Transfer Notice on the terms and conditions described in the Transfer Notice. Any proposed transfer
on terms and conditions different from those described in the Transfer Notice, as well as any subsequent proposed transfer by you, shall again be subject to the Right of First Refusal and shall require compliance with the procedure described in the
paragraph above. If the Company exercises its Right of First Refusal, you and the Company (or its assignees) shall consummate the sale of the Shares on the terms set forth in the Transfer Notice.

	
	 	  	 The Company’s Right of First Refusal shall inure to the benefit of its successors and assigns and shall be binding
upon any transferee of the Shares.

	
	 Right of Repurchase
	  	 Following termination of your Service for any reason, the Company shall have the right to purchase all of those vested
Shares that you have or will acquire under this Option (unvested Shares which have been exercised are subject to a Repurchase Option set forth in Exhibit A). If the Company fails to provide you with written notice of its intention to purchase such
Shares before or within 30 days of the date the Company receives written notice from you of your termination of Service, the Company’s right to purchase such Shares shall terminate. If the Company exercises its right to purchase such Shares,
the Company will consummate the purchase of such Shares within 60 days of the date of its written notice to you. The purchase price for any Shares repurchased shall be the higher of the Fair Market Value of such Shares on the date of purchase or the
aggregate Exercise Price for such Shares and shall be paid in cash. The Company’s right of repurchase shall terminate in the event that Stock is listed on an established stock exchange or is quoted regularly on the Nasdaq National
Market.

	
	 Transfer of Option
	  	 Prior to your death, only you may exercise this Option. You cannot transfer or assign this Option. For instance, you may
not sell this Option or use it as security for a loan. If you attempt to do any of these things, this Option will immediately become invalid. You may, however, dispose of this Option in your will. Regardless of any marital property settlement
agreement, the Company is not obligated to honor a Notice of Exercise from your spouse or former spouse, nor is the Company obligated to recognize such individual’s interest in your Option in any other way.

	
	 Retention Rights
	  	 This Agreement does not give you the right to be retained by the Company in any capacity. The Company reserves the right
to terminate your Service at any time and for any reason.

	
	 Shareholder Rights
	  	 Neither you, nor your estate or heirs, have any rights as a shareholder of the Company until a certificate for the Shares
acquired upon exercise of this Option has been issued. No adjustments are made for dividends or other rights if the applicable record date occurs before your stock certificate is issued, except as described in the Plan.

	
	 Adjustments
	  	 In the event of a stock split, a stock dividend or a similar change in the Company’s Stock, the number of Shares
covered by this Option and the Exercise Price per share may be adjusted pursuant to the Plan. Your Option shall be subject to the terms of the agreement of merger, liquidation or reorganization in the event the Company is subject to such corporate
activity.

	
	 Legends
	  	 All certificates representing the Shares issued upon exercise of this Option shall, where applicable, have endorsed
thereon the following legends:

	
	 	  	 “THE SECURITIES REPRESENTED BY THISCERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND OPTIONS TO
PURCHASE SUCH SHARES SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER, OR SUCH HOLDER’S PREDECESSOR IN INTEREST. SUCH AGREEMENT IMPOSES CERTAIN TRANSFER RESTRICTIONS AND GRANTS CERTAIN REPURCHASE RIGHTS TO THE COMPANY (OR
ITS ASSIGNS) UPON THE SALE OF THE SHARES OR UPON TERMINATION OF SERVICE WITH THE COMPANY. A COPY OF SUCH AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY AND WILL BE FURNISHED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY BY THE
HOLDER OF SHARES REPRESENTED BY THIS CERTIFICATE.

	
	 	  	 THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, OR THE
SECURITIES LAWS OF ANY STATE, AND MAY BE OFFERED AND SOLD ONLY IF REGISTERED AND QUALIFIED PURSUANT TO THE RELEVANT PROVISIONS OF FEDERAL AND STATE SECURITIES LAWS OR IF THE COMPANY IS PROVIDED AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND
ITS COUNSEL, THAT REGISTRATION AND QUALIFICATION UNDER FEDERAL AND STATE SECURITIES LAWS IS NOT REQUIRED.”

	
	 Applicable Law
	  	 This Agreement will be interpreted and enforced under the laws of the State of California (without regard to their choice
of law provisions).

	
	 The Plan and Other Agreements
	  	 The text of the Plan is incorporated in this Agreement by reference. Certain capitalized terms used in this Agreement are
defined in the Plan.

	
	 	  	 This Agreement and the Plan constitute the entire understanding between you and the Company regarding this Option. Any
prior agreements, commitments or negotiations concerning this Option are superseded.

 
 
By signing the cover sheet of this Agreement, you agree to all of the terms and conditions described above and in the Plan.

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