Document:

exv10w1

 

    Exhibit
10.1

 

    MCAFEE,
    INC.

    

 

    2010
    EQUITY INCENTIVE PLAN

 

    1. Purposes of the Plan.  The
    purposes of this Plan are to attract and retain the best
    available personnel for positions of substantial responsibility,
    to provide incentives to individuals who perform services to the
    Company, and to promote the success of the Company’s
    business.

 

    The Plan permits the grant of Incentive Stock Options,
    Nonstatutory Stock Options, Stock Appreciation Rights,
    Restricted Stock, Stock Units, Performance Units and Performance
    Shares.

 

    2. Definitions.  As used herein,
    the following definitions will apply:

 

    (a) “Administrator” means the Board
    or any of its Committees as will be administering the Plan, in
    accordance with Section 4 of the Plan.

 

    (b) “Affiliate” means any
    corporation or any other entity (including, but not limited to,
    partnerships and joint ventures) controlling, controlled by, or
    under common control with the Company.

 

    (c) “Applicable Laws” means the
    requirements relating to the administration of equity-based
    awards under U.S. state corporate laws, U.S. federal
    and state securities laws, the Code, any stock exchange or
    quotation system on which the Common Stock is listed or quoted
    and the applicable laws of any foreign country or jurisdiction
    where Awards are, or will be, granted under the Plan.

 

    (d) “Award” means, individually or
    collectively, a grant under the Plan of Options, Stock
    Appreciation Rights, Restricted Stock, Stock Units, Performance
    Units or Performance Shares.

 

    (e) “Award Agreement” means the
    written or electronic agreement setting forth the terms and
    provisions applicable to each Award granted under the Plan. The
    Award Agreement is subject to the terms and conditions of the
    Plan.

 

    (f) “Award Transfer Program” means
    any program instituted by the Administrator that would permit
    Participants the opportunity to transfer for value any
    outstanding Awards to a financial institution or other person or
    entity approved by the Administrator.

 

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

 

    (h) “Change in Control” means the
    occurrence of any of the following events:

 

    (i) Change in Ownership of the
    Company.  A change in the ownership of the
    Company which occurs on the date that any one person, or more
    than one person acting as a group (“Person”),
    acquires ownership of the stock of the Company that, together
    with the stock held by such Person, constitutes more than fifty
    percent (50%) of the total voting power of the stock of the
    Company; provided, however, that for purposes of this subsection
    (i), the acquisition of additional stock by any one Person, who
    is considered to own more than fifty percent (50%) of the total
    voting power of the stock of the Company will not be considered
    a Change in Control; or

 

    (ii) Change in Effective Control of the
    Company.  If the Company has a class of
    securities registered pursuant to Section 12 of the
    Exchange Act, a change in the effective control of the Company
    which occurs on the date that a majority of members of the Board
    is replaced during any twelve (12) month period by
    Directors whose appointment or election is not endorsed by a
    majority of the members of the Board prior to the date of the
    appointment or election. For purposes of this subsection (ii),
    if any Person is considered to be in effective control of the
    Company, the acquisition of additional control of the Company by
    the same Person will not be considered a Change in
    Control; or

 

    (iii) Change in Ownership of a Substantial Portion of
    the Company’s Assets.  A change in the
    ownership of a substantial portion of the Company’s assets
    which occurs on the date that any Person acquires (or has
    acquired during the twelve (12) month period ending on the
    date of the most recent

    

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    acquisition by such person or persons) assets from the Company
    that have a total gross fair market value equal to or more than
    fifty percent (50%) of the total gross fair market value of all
    of the assets of the Company immediately prior to such
    acquisition or acquisitions; provided, however, that for
    purposes of this subsection (iii), the following will not
    constitute a change in the ownership of a substantial portion of
    the Company’s assets: (A) a transfer to an entity that
    is controlled by the Company’s stockholders immediately
    after the transfer, or (B) a transfer of assets by the
    Company to: (1) a stockholder of the Company (immediately
    before the asset transfer) in exchange for or with respect to
    the Company’s stock, (2) an entity, fifty percent
    (50%) or more of the total value or voting power of which is
    owned, directly or indirectly, by the Company, (3) a
    Person, that owns, directly or indirectly, fifty percent (50%)
    or more of the total value or voting power of all the
    outstanding stock of the Company, or (4) an entity, at
    least fifty percent (50%) of the total value or voting power of
    which is owned, directly or indirectly, by a Person described in
    this subsection (iii)(B)(3). For purposes of this subsection
    (iii), gross fair market value means the value of the assets of
    the Company, or the value of the assets being disposed of,
    determined without regard to any liabilities associated with
    such assets.

 

    For purposes of this Section 2(h), persons will be
    considered to be acting as a group if they are owners of a
    corporation that enters into a merger, consolidation, purchase
    or acquisition of stock, or similar business transaction with
    the Company.

 

    Notwithstanding the foregoing, a transaction shall not be deemed
    a Change in Control unless the transaction qualifies as a change
    in control event within the meaning of Section 409A of the
    Code, as it has been and may be amended from time to time, and
    any proposed or final Treasury Regulations and Internal Revenue
    Service guidance that has been promulgated or may be promulgated
    thereunder from time to time.

 

    Further and for the avoidance of doubt, a transaction shall not
    constitute a Change in Control if: (i) its sole purpose is
    to change the state of the Company’s incorporation, or
    (ii) its sole purpose is to create a holding company that
    shall be owned in substantially the same proportions by the
    persons who held the Company’s securities immediately
    before such transaction.

 

    (i) “Code” means the Internal
    Revenue Code of 1986, as amended. Reference to a specific
    section of the Code or Treasury Regulation thereunder will
    include such section or regulation, any valid regulation or
    other official applicable guidance promulgated under such
    section, and any comparable provision of any future legislation
    or regulation amending, supplementing or superseding such
    section or regulation.

 

    (j) “Committee” means a committee
    of Directors or of other individuals satisfying Applicable Laws
    appointed by the Board in accordance with Section 4 hereof.

 

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

 

    (l) “Company” means McAfee, Inc., a
    Delaware corporation, or any successor thereto.

 

    (m) “Consultant” means any person,
    including an advisor, engaged by the Company or its Affiliates
    to render services to such entity other than as an Employee.

 

    (n) “Determination Date” means the
    latest possible date that will not jeopardize the qualification
    of an Award granted under the Plan as “performance-based
    compensation” under Section 162(m) of the Code.

 

    (o) “Director” means a member of
    the Board.

 

    (p) “Disability” means total and
    permanent disability as defined in Section 22(e)(3) of the
    Code, provided that in the case of Awards other than Incentive
    Stock Options, the Administrator in its discretion may determine
    whether a permanent and total disability exists in accordance
    with uniform and non-discriminatory standards adopted by the
    Administrator from time to time.

 

    (q) “Employee” means any person,
    including Officers and Directors, employed by the Company or its
    Affiliates. Neither service as a Director nor payment of a
    Director’s fee by the Company will be sufficient to
    constitute “employment” by the Company.

 

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

    

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    (s) “Fair Market Value” means, as
    of any date, the value of Common Stock determined as follows:

 

    (i) If the Common Stock is listed on any established stock
    exchange or a national market system, including without
    limitation the Nasdaq Global Market, the Nasdaq Global Select
    Market or the Nasdaq Capital Market, its Fair Market Value shall
    be the closing sales price for such stock (or, if no closing
    sales price was reported on that date, as applicable, on the
    last trading date such closing sales price is reported) as
    quoted on such exchange or system on the day of determination,
    as reported in The Wall Street Journal or such other
    source as the Administrator deems reliable;

 

    (ii) If the Common Stock is regularly quoted 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 day of
    determination (or, if no bids and asks were reported on that
    date, as applicable, on the last trading date such bids and asks
    are reported); or

 

    (iii) In the absence of an established market for the
    Common Stock, the Fair Market Value will be determined in good
    faith by the Administrator.

 

    (t) “Fiscal Year” means the fiscal
    year of the Company.

 

    (u) “Incentive Stock Option” means
    an Option that by its terms qualifies and is otherwise intended
    to qualify as an incentive stock option within the meaning of
    Section 422 of the Code and the regulations promulgated
    thereunder.

 

    (v) “Nonstatutory Stock Option”
    means an Option that by its terms does not qualify or is not
    intended to qualify as an Incentive Stock Option.

 

    (w) “Officer” means a person who is
    an officer of the Company within the meaning of Section 16
    of the Exchange Act and the rules and regulations promulgated
    thereunder.

 

    (x) “Option” means a stock option
    granted pursuant to the Plan.

 

    (y) “Parent” means a “parent
    corporation,” whether now or hereafter existing, as defined
    in Section 424(e) of the Code.

 

    (z) “Participant” means the holder
    of an outstanding Award.

 

    (aa) “Performance Goals” will have
    the meaning set forth in Section 11 of the Plan.

 

    (bb) “Performance Period” means any
    Fiscal Year of the Company or such longer or shorter period as
    determined by the Administrator in its sole discretion.

 

    (cc) “Performance Share” means an
    Award denominated in Shares which may be earned in whole or in
    part upon attainment of performance goals or other vesting
    criteria as the Administrator may determine pursuant to
    Section 10.

 

    (dd) “Performance Unit” means an
    Award which may be earned in whole or in part upon attainment of
    performance goals or other vesting criteria as the Administrator
    may determine and which may be settled for cash, Shares or other
    securities or a combination of the foregoing pursuant to
    Section 10.

 

    (ee) “Period of Restriction” means
    the period during which the transfer of Shares of Restricted
    Stock are subject to restrictions and therefore, the Shares are
    subject to a substantial risk of forfeiture. Such restrictions
    may be based on the passage of time, the achievement of target
    levels of performance, or the occurrence of other events as
    determined by the Administrator.

 

    (ff) “Plan” means this 2010 Equity
    Incentive Plan.

 

    (gg) “Restricted Stock” means
    Shares issued pursuant to a Restricted Stock Award under
    Section 8 of the Plan, or issued pursuant to the early
    exercise of an Option.

 

    (hh) “Rule 16b-3”
    means
    Rule 16b-3
    of the Exchange Act or any successor to
    Rule 16b-3,
    as in effect when discretion is being exercised with respect to
    the Plan.

    

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    (ii) “Section 16(b)” means
    Section 16(b) of the Exchange Act.

 

    (jj) “Service Provider” means an
    Employee, Director or Consultant.

 

    (kk) “Share” means a share of the
    Common Stock, as adjusted in accordance with Section 15 of
    the Plan.

 

    (ll) “Stock Appreciation Right”
    means an Award, granted alone or in connection with an
    Option, that pursuant to Section 7 is designated as a Stock
    Appreciation Right.

 

    (mm) “Stock Unit” means a
    bookkeeping entry representing an amount equal to the Fair
    Market Value of one Share, granted pursuant to Section 9.
    Each Stock Unit represents an unfunded and unsecured obligation
    of the Company.

 

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

 

    3. Stock Subject to the Plan.

 

    (a) Subject to the provisions of Section 15 of the
    Plan, the maximum aggregate number of Shares that may be issued
    under the Plan is twelve million six hundred thousand
    (12,600,000) Shares plus: (i) the additional Shares
    described in Section 3(c), (ii) any Shares available
    for issuance under the Company 1997 Stock Incentive Plan (the
    “1997 Plan”) and (iii) any Shares subject to
    stock options or similar awards granted under the MX Logic, Inc.
    2002 Equity Incentive Plan, the Secure Computing Corporation
    2002 Stock Incentive Plan, the Secure Computing Corporation
    (formerly CipherTrust, Inc.) 2000 Stock Option Plan, the
    Cyberguard Corporation Third Amended and Restated Employee Stock
    Option Plan, the Safeboot Option Plan 2006 and the Foundstone,
    Inc. 2000 Stock Plan (collectively, the “Acquisition
    Plans”)
    and/or the
    1997 Plan that expire or otherwise terminate without having been
    exercised in full and Shares issued pursuant to awards granted
    under the Acquisition Plans
    and/or the
    1997 Plan that are forfeited to or repurchased by the Company,
    with the maximum number of Shares to be added to the Plan
    pursuant to this clause (iii) equal to 14,474,986 Shares).
    The Shares may be authorized, but unissued, or reacquired Common
    Stock.

 

    (b) Full Value Awards.  Any Shares
    subject to Awards of Restricted Stock, Stock Units, Performance
    Units, and Performance Shares will be counted against the
    numerical limits of this Section 3 as two and forty-three
    hundredths (2.43) Shares for every one Share subject thereto.
    Further, if Shares acquired pursuant to any such Award are
    forfeited or repurchased by the Company and would otherwise
    return to the Plan pursuant to Section 3(c), two and
    forty-three hundredths (2.43) times the number of Shares so
    forfeited or repurchased will return to the Plan and will again
    become available for issuance.

 

    (c) Lapsed Awards.  If an Award
    expires or becomes unexercisable without having been exercised
    in full or, with respect to Restricted Stock, Stock Units,
    Performance Units or Performance Shares, is forfeited to or
    repurchased by the Company due to failure to vest, the
    unpurchased Shares (or for Awards other than Options or Stock
    Appreciation Rights the forfeited, repurchased, or unissued
    Shares) which were subject thereto will become available for
    future grant or sale under the Plan (unless the Plan has
    terminated). Shares purchased by the Company in the open market
    with the proceeds from the sale of Shares pursuant to the
    exercise of Options will not be available for issuance under the
    Plan. Upon the exercise of a Stock Appreciation Right settled in
    Shares, the gross number of Shares covered by the portion of the
    Award so exercised will cease to be available under the Plan.
    Shares used to pay the exercise or purchase price of an Award
    and/or to
    satisfy the tax withholding obligations related to an Award will
    not become available for future grant or sale under the Plan. To
    the extent an Award under the Plan is paid out in cash rather
    than Shares, such cash payment will not result in reducing the
    number of Shares available for issuance under the Plan. Shares
    that have actually been issued under the Plan under any Award
    will not be returned to the Plan and will not become available
    for future distribution under the Plan; provided, however, that
    if Shares issues pursuant to Awards of Restricted Stock, Stock
    Units, Performance Shares or Performance Units are repurchased
    by the Company or are forfeited to the Company due to failure to
    vest, such Shares will become available for future grant under
    the Plan. Notwithstanding the foregoing and, subject to
    adjustment as provided in Section 15, the maximum number of
    Shares that may be issued upon the exercise of Incentive Stock
    Options will equal the aggregate Share number stated in
    Section 3(a), plus, to the extent allowable under
    Section 422 of the Code and the Treasury Regulations
    promulgated thereunder, any Shares that become available for
    issuance under the Plan under this Section 3(c).

    

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    (d) Share Reserve.  The Company,
    during the term of this Plan, will at all times reserve and keep
    available such number of Shares as will be sufficient to satisfy
    the requirements of the Plan.

 

    4. Administration of the Plan.

 

    (a) Procedure.

 

    (i) Multiple Administrative
    Bodies.  Different Committees with respect to
    different groups of Service Providers may administer the Plan.

 

    (ii) Section 162(m).  To the
    extent that the Administrator determines it to be desirable to
    qualify Awards granted hereunder as “performance-based
    compensation” within the meaning of Section 162(m) of
    the Code, the Plan will be administered by a Committee of two
    (2) or more “outside directors” within the
    meaning of Section 162(m) of the Code. For the avoidance of
    doubt, to the extent that the Administrator is providing for the
    grant,
    and/or the
    administration of, Awards that are not intended to qualify as
    “performance-based compensation” under
    Section 162(m) of the Code, the Plan may be administered by
    a Committee that consists of other than two (2) or more
    “outside directors” within the meaning of
    Section 162(m) of the Code.

 

    (iii) Rule 16b-3.  To
    the extent desirable to qualify transactions hereunder as exempt
    under
    Rule 16b-3,
    the transactions contemplated hereunder will be structured to
    satisfy the requirements for exemption under
    Rule 16b-3.

 

    (iv) Other Administration.  Other
    than as provided above, the Plan will be administered by
    (A) the Board or (B) a Committee, which committee will
    be constituted to satisfy Applicable Laws.

 

    (b) Powers of the
    Administrator.  Subject to the provisions of
    the Plan, and in the case of a Committee, subject to the
    specific duties delegated by the Board to such Committee, the
    Administrator will have the authority, in its discretion:

 

    (i) to determine the Fair Market Value;

 

    (ii) to select the Service Providers to whom Awards may be
    granted hereunder;

 

    (iii) to determine the number of Shares to be covered by
    each Award granted hereunder;

 

    (iv) to approve forms of Award Agreements for use under the
    Plan and to expressly delegate to the Officers the authority to
    approve and modify such forms of Award Agreement
    and/or
    individual Award Agreements;

 

    (v) to determine the terms and conditions, not inconsistent
    with the terms of the Plan, of any Award granted hereunder. Such
    terms and conditions include, but are not limited to, the
    exercise price, the time or times when Awards may be exercised
    (which may be based on performance criteria), any vesting
    acceleration or waiver of forfeiture restrictions, and any
    restriction or limitation regarding any Award or the Shares
    relating thereto, based in each case on such factors as the
    Administrator will determine;

 

    (vi) to construe and interpret the terms of the Plan and
    Awards granted pursuant to the Plan;

 

    (vii) to prescribe, amend and rescind rules and regulations
    relating to the Plan, including rules and regulations relating
    to sub-plans
    established for the purpose of satisfying applicable foreign
    laws or for qualifying for favorable tax treatment under
    applicable foreign laws. Pursuant to subsection 4(b)(iv), this
    authority may be expressly delegated to the Officers;

 

    (viii) to modify or amend each Award (subject to Section(s)
    4(e)(i) and 20(c) of the Plan), including but not limited to the
    discretionary authority to extend the post-termination
    exercisability period of Awards and to extend the maximum term
    of an Option (subject to Section 6(e));

 

    (ix) to allow Participants to satisfy withholding tax
    obligations in such manner as prescribed in Section 16;

 

    (x) to authorize any person to execute on behalf of the
    Company any instrument required to effect the grant of an Award
    previously granted by the Administrator;

    

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    (xi) to allow a Participant to defer the receipt of the
    payment of cash or the delivery of Shares that would otherwise
    be due to such Participant under an Award pursuant to such
    procedures as the Administrator may determine; and

 

    (xii) to make all other determinations deemed necessary or
    advisable for administering the Plan.

 

    (c) Effect of Administrator’s
    Decision.  The Administrator’s decisions,
    determinations and interpretations will be final and binding on
    all Participants and any other holders of Awards.

 

    (d) No Liability.  Under no
    circumstances shall the Company, its Affiliates, the
    Administrator, or the Board incur liability for any indirect,
    incidental, consequential or special damages (including lost
    profits) of any form incurred by any person, whether or not
    foreseeable and regardless of the form of the act in which such
    a claim may be brought, with respect to the Plan or the
    Company’s, its Affiliates’, the Administrator’s
    or the Board’s roles in connection with the Plan.

 

    (e) Limitations.

 

    (i) Prohibition Against
    Repricing.  Notwithstanding
    Section 4(b)(viii), the Administrator may not modify or
    amend an Option or Stock Appreciation Right to reduce the
    exercise price of such Option or Stock Appreciation Right after
    it has been granted (except for adjustments made pursuant to
    Section 15), and neither may the Administrator cancel any
    outstanding Option or Stock Appreciation Right and immediately
    replace it with any other Award with a lower exercise price,
    unless such action is approved by stockholders prior to such
    action being taken.

 

    (ii) Buyout Provisions.  The
    Administrator may at any time offer to buy out for a payment in
    cash an Option previously granted based on such terms and
    conditions as the Administrator will establish and communicate
    to the Participant at the time that such offer is made.
    Notwithstanding anything contained in this Section 4(e)(ii)
    to the contrary, the Administrator shall not be allowed to
    authorize the buyout of underwater Options or Stock Appreciation
    Rights without the prior consent of the Company’s
    stockholders.

 

    5. Eligibility.  Nonstatutory Stock
    Options, Restricted Stock, Stock Units, Stock Appreciation
    Rights, Performance Units, and Performance Shares may be granted
    to Service Providers. Incentive Stock Options may be granted
    only to employees of the Company or any Parent or Subsidiary of
    the Company.

 

    6. Stock Options.

 

    (a) Grant of Stock
    Options.  Subject to the terms and conditions
    of the Plan, an Option may be granted to Service Providers at
    any time and from time to time as will be determined by the
    Administrator, in its sole discretion. Each Option will be
    designated in the Award Agreement as either an Incentive Stock
    Option or a Nonstatutory Stock Option. However, notwithstanding
    such designation, to the extent that the aggregate Fair Market
    Value of the Shares with respect to which Incentive Stock
    Options are exercisable for the first time by the Participant
    during any calendar year (under all plans of the Company and any
    Parent or Subsidiary) exceeds one hundred thousand
    U.S. dollars ($100,000), such Options will be treated as
    Nonstatutory Stock Options. For purposes of this
    Section 6(a), Incentive Stock Options will be taken into
    account in the order in which they were granted. The Fair Market
    Value of the Shares will be determined as of the time the Option
    with respect to such Shares is granted.

 

    Notwithstanding anything herein to the contrary, the date of
    grant of an Option shall, for all purposes, be the date on which
    the Administrator makes the determination granting such Option
    or, in the event that the Administrator’s meeting takes
    place during a period in which the trading window is closed, on
    such future date as the Administrator specifies at that time
    (e.g., two (2) days after the Company’s next public
    earnings announcement). Notice of the determination shall be
    given to each individual to whom an Option is so granted
    promptly but in no event more than three (3) weeks after
    the date of such grant. Determination shall be defined as
    including at a minimum, the number of Shares subject to Options
    granted to each individual and the terms of such Options.

 

    (b) Number of Shares.  The
    Administrator will have complete discretion to determine the
    number of Shares subject to an Option granted to any
    Participant, provided that during any Fiscal Year, no
    Participant will be granted Options covering more than 1,000,000
    Shares. Notwithstanding the limitation in the previous sentence,
    in

    

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    connection with his or her initial service as an Employee, an
    Employee may be granted Options covering up to an additional
    500,000 Shares. The foregoing limitations will be adjusted
    proportionately in connection with any change in the
    Company’s capitalization as described in Section 15.

 

    (c) Exercise Price and Other
    Terms.  The Administrator, subject to the
    provisions of the Plan, will have complete discretion to
    determine the terms and conditions of Options granted under the
    Plan, provided, however, that the exercise price will not be
    less than one hundred percent (100%) of the Fair Market Value of
    a Share on the date of grant. In addition, in the case of an
    Incentive Stock Option granted to an employee of the Company or
    any Parent or Subsidiary of the Company who, at the time the
    Incentive Stock Option is granted, owns stock representing more
    than ten percent (10%) of the voting power of all classes of
    stock of the Company or any Parent or Subsidiary, the per Share
    exercise price will be no less than one hundred ten percent
    (110%) of the Fair Market Value per Share on the date of grant.
    Notwithstanding the foregoing provisions of this
    Section 6(c), Options may be granted with a per Share
    exercise price of less than one hundred percent (100%) of the
    Fair Market Value per Share on the date of grant pursuant to a
    transaction described in, and in a manner consistent with,
    Section 424(a) of the Code and the Treasury Regulations
    thereunder.

 

    (d) Option Agreement.

 

    (i) Terms and Conditions.  Each
    Option grant will be evidenced by an Award Agreement that will
    specify the exercise price, the term of the Option, the
    acceptable forms of consideration for exercise (which may
    include any form of consideration permitted by
    Section 6(d)(ii)), the conditions of exercise, and such
    other terms and conditions as the Administrator, in its sole
    discretion, will determine.

 

    (ii) Form of Consideration.  The
    Administrator will determine the acceptable form(s) of
    consideration for exercising an Option, including the method of
    payment, to the extent permitted by Applicable Laws. In the case
    of an Incentive Stock Option, the Administrator will determine
    the acceptable form of consideration at the time of grant. Such
    consideration to the extent permitted by Applicable Laws may
    include, but is not limited to:

 

    (1) cash;

 

    (2) check;

 

    (3) other Shares which have a Fair Market Value on the date
    of surrender equal to the aggregate exercise price of the Shares
    as to which said Option will be exercised and provided that
    accepting such Shares, in the sole discretion of the
    Administrator, will not result in any adverse accounting
    consequences to the Company;

 

    (4) by net exercise;

 

    (5) consideration received by the Company under a cashless
    exercise program implemented by the Company in connection with
    the Plan;

 

    (6) a reduction in the amount of any Company liability to
    the Participant, including any liability attributable to the
    Participant’s participation in any Company-sponsored
    deferred compensation program or arrangement;

 

    (7) such other consideration and method of payment for the
    issuance of Shares to the extent permitted by Applicable
    Laws; or

 

    (8) any combination of the foregoing methods of payment.

 

    (e) Term of Option.  An Option
    granted under the Plan will expire upon the date determined by
    the Administrator, in its sole discretion, and set forth in the
    Award Agreement; provided, however, that the term will be no
    more than seven (7) years from the date of grant thereof.
    In the case of an Incentive Stock Option granted to a
    Participant who, at the time the Incentive Stock Option is
    granted, owns stock representing more than ten percent (10%) of
    the total combined voting power of all classes of stock of the
    Company or any Parent or Subsidiary, the term of the Incentive
    Stock Option will be five (5) years from the date of grant
    or such shorter term as may be provided in the Award Agreement.

    

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    (f) Exercise of Option.

 

    (i) Procedure for Exercise; Rights as a
    Stockholder.  Any Option granted hereunder
    will be exercisable according to the terms of the Plan and at
    such times and under such conditions as determined by the
    Administrator and set forth in the Award Agreement. An Option
    may not be exercised for a fraction of a Share.

 

    An Option will be deemed exercised when the Company receives:
    (i) notice of exercise (in such form as the Administrator
    or its delegate specifies from time to time, including, but not
    limited to an electronic process) from the person entitled to
    exercise the Option, and (ii) full payment for the Shares
    with respect to which the Option is exercised (together with
    applicable tax withholdings). Full payment may consist of any
    consideration and method of payment authorized by the
    Administrator or its delegate and permitted by the Award
    Agreement and the Plan. Shares issued upon exercise of an Option
    will be issued in the name of the Participant. Until the Shares
    are issued (as evidenced by the appropriate entry on the books
    of the Company or of a duly authorized transfer agent of the
    Company), no right to vote or receive dividends or any other
    rights as a stockholder will exist with respect to the Shares
    subject to an Option, notwithstanding the exercise of the
    Option. The Company will issue (or cause to be issued) such
    Shares promptly after the Option is exercised. No adjustment
    will be made for a dividend or other right for which the record
    date is prior to the date the Shares are issued, except as
    provided in Section 15 of the Plan.

 

    Exercising an Option in any manner will decrease the number of
    Shares thereafter available, both for purposes of the Plan and
    for sale under the Option, by the number of Shares as to which
    the Option is exercised.

 

    (ii) Termination of Relationship as a Service
    Provider.  If a Participant ceases to be a
    Service Provider, other than upon the Participant’s
    termination as the result of the Participant’s death or
    Disability, the Participant may exercise his or her Option
    within such period of time as is specified in the Award
    Agreement to the extent that the Option is vested on the date of
    termination (but in no event later than the expiration of the
    term of such Option as set forth in the Award Agreement). In the
    absence of a specified time in the Award Agreement, the Option
    will remain exercisable for three (3) months following the
    Participant’s termination. Unless otherwise provided by the
    Administrator, if on the date of termination the Participant is
    not vested as to his or her entire Option, the Shares covered by
    the unvested portion of the Option will revert to the Plan. If
    after termination the Participant does not exercise his or her
    Option within the time specified by the Administrator, the
    Option will terminate, and the Shares covered by such Option
    will revert to the Plan.

 

    (iii) Disability of
    Participant.  If a Participant ceases to be a
    Service Provider as a result of the Participant’s
    Disability, the Participant may exercise his or her Option
    within such period of time as is specified in the Award
    Agreement to the extent the Option is vested on the date of
    termination (but in no event later than the expiration of the
    term of such Option as set forth in the Award Agreement). In the
    absence of a specified time in the Award Agreement, the Option
    will remain exercisable for twelve (12) months following
    the Participant’s termination. Unless otherwise provided by
    the Administrator, if on the date of termination the Participant
    is not vested as to his or her entire Option, the Shares covered
    by the unvested portion of the Option will revert to the Plan.
    If after termination the Participant does not exercise his or
    her Option within the time specified herein, the Option will
    terminate, and the Shares covered by such Option will revert to
    the Plan.

 

    (iv) Death of Participant.  If a
    Participant dies while a Service Provider, the Option may be
    exercised following the Participant’s death within such
    period of time as is specified in the Award Agreement to the
    extent that the Option is vested on the date of death (but in no
    event may the Option be exercised later than the expiration of
    the term of such Option as set forth in the Award Agreement), by
    the Participant’s designated beneficiary, provided such
    beneficiary has been designated prior to Participant’s
    death in a form acceptable to the Administrator. If no such
    beneficiary has been designated by the Participant, then such
    Option may be exercised by the personal representative of the
    Participant’s estate or by the person(s) to whom the Option
    is transferred pursuant to the Participant’s will or in
    accordance with the laws of descent and distribution. In the
    absence of a specified time in the Award Agreement, the Option
    will remain exercisable for twelve (12) months following
    Participant’s death. Unless otherwise provided by the
    Administrator, if at the time of death Participant is not vested
    as to his or her entire Option, the Shares covered by the
    unvested portion of the Option will immediately revert to the
    Plan. If the Option is not so exercised within the time
    specified herein, the Option will terminate, and the Shares
    covered by such Option will revert to the Plan.

    

8

 

    (v) Other Termination.  A
    Participant’s Award Agreement also may provide that if the
    exercise of the Option following the termination of
    Participant’s status as a Service Provider (other than upon
    the Participant’s death or Disability) would result in
    liability under Section 16(b), then the Option will
    terminate on the earlier of (A) the expiration of the term
    of the Option set forth in the Award Agreement, or (B) the
    tenth (10th) day after the last date on which such exercise
    would result in such liability under Section 16(b).
    Finally, a Participant’s Award Agreement may also provide
    that if the exercise of the Option following the termination of
    the Participant’s status as a Service Provider (other than
    upon the Participant’s death or Disability) would be
    prohibited at any time solely because the issuance of Shares
    would violate the registration requirements under the Securities
    Act, then the Option will terminate on the earlier of
    (A) the expiration of the term of the Option, or
    (B) the expiration of a period of three (3) months
    after the termination of the Participant’s status as a
    Service Provider during which the exercise of the Option would
    not be in violation of such registration requirements.

 

    7. Stock Appreciation Rights.

 

    (a) Grant of Stock Appreciation
    Rights.  Subject to the terms and conditions
    of the Plan, a Stock Appreciation Right may be granted to
    Service Providers at any time and from time to time as will be
    determined by the Administrator, in its sole discretion.

 

    Notwithstanding anything herein to the contrary, the date of
    grant of a Stock Appreciation Right shall, for all purposes, be
    the date on which the Administrator makes the determination
    granting such Stock Appreciation Right or, in the event that the
    Administrator’s meeting takes place during a period in
    which the trading window is closed, on such future date as the
    Administrator specifies at that time (e.g., two (2) days
    after the Company’s next public earnings announcement).
    Notice of the determination shall be given to each individual to
    whom a Stock Appreciation Right is so granted promptly but in no
    event more than three (3) weeks after the date of such
    grant. Determination shall be defined as including at a minimum,
    the number of Shares subject to Stock Appreciation Rights
    granted to each individual and the terms of such Stock
    Appreciation Rights.

 

    (b) Number of Shares.  The
    Administrator will have complete discretion to determine the
    number of Stock Appreciation Rights granted to any Participant,
    provided that during any Fiscal Year, no Participant will be
    granted Stock Appreciation Rights covering more than
    1,000,000 Shares. Notwithstanding the limitation in the
    previous sentence, in connection with his or her initial service
    as an Employee, an Employee may be granted Stock Appreciation
    Rights covering up to an additional 1,000,000 Shares. The
    foregoing limitations will be adjusted proportionately in
    connection with any change in the Company’s capitalization
    as described in Section 15.

 

    (c) Exercise Price and Other
    Terms.  The Administrator, subject to the
    provisions of the Plan, will have complete discretion to
    determine the terms and conditions of Stock Appreciation Rights
    granted under the Plan, provided, however, that the exercise
    price will not be less than one hundred percent (100%) of the
    Fair Market Value of a Share on the date of grant.
    Notwithstanding the foregoing provisions of this
    Section 7(c), Stock Appreciation Rights may be granted with
    a per Share exercise price of less than one hundred percent
    (100%) of the Fair Market Value per Share on the date of grant
    pursuant to a transaction described in, and in a manner
    consistent with, Section 424(a) of the Code and the
    Treasury Regulations thereunder.

 

    (d) Stock Appreciation Right
    Agreement.  Each Stock Appreciation Right
    grant will be evidenced by an Award Agreement that will specify
    the exercise price, the term of the Stock Appreciation Right,
    the acceptable forms of consideration for exercise (which may
    include any form of consideration permitted by
    Section 6(d)(ii)), the conditions of exercise, and such
    other terms and conditions as the Administrator, in its sole
    discretion, will determine.

 

    (e) Expiration of Stock Appreciation
    Rights.  A Stock Appreciation Right granted
    under the Plan will expire upon the date determined by the
    Administrator, in its sole discretion, and set forth in the
    Award Agreement; provided, however, that the term will be no
    more than seven (7) years from the date of grant thereof.
    Notwithstanding the foregoing, the rules of Section 6(f)
    relating to exercise also will apply to Stock Appreciation
    Rights.

    

9

 

    (f) Payment of Stock Appreciation Right
    Amount.  Upon exercise of a Stock Appreciation
    Right, a Participant will be entitled to receive payment from
    the Company in an amount determined by multiplying:

 

    (i) The difference between the Fair Market Value of a Share
    on the date of exercise over the exercise price; times

 

    (ii) The number of Shares with respect to which the Stock
    Appreciation Right is exercised.

 

    At the discretion of the Administrator, the payment upon Stock
    Appreciation Right exercise may be in cash, in Shares of
    equivalent value, or in some combination thereof.

 

    (g) Modification or Assumption of Stock Appreciation
    Rights.  Subject to Section 4(b)(viii)
    and the provisions of the Plan, the Administrator may modify,
    extend or assume outstanding Stock Appreciation Rights or may
    accept the cancellation of outstanding Stock Appreciation Rights
    (whether granted by the Company or by another issuer) in return
    for the grant of new Stock Appreciation Rights for the same or a
    different number of Shares and at the same or a different
    exercise price. The foregoing notwithstanding, no modification
    of a Stock Appreciation Right shall, without the consent of the
    Participant, alter or impair his or her rights or obligations
    under such Stock Appreciation Right.

 

    8. Restricted Stock.

 

    (a) Grant of Restricted
    Stock.  Subject to the terms and provisions of
    the Plan, the Administrator, at any time and from time to time,
    may grant Shares of Restricted Stock to Service Providers in
    such amounts as the Administrator, in its sole discretion, will
    determine.

 

    (b) Restricted Stock
    Agreement.  Each Award of Restricted Stock
    will be evidenced by an Award Agreement that will specify the
    Period of Restriction, the number of Shares granted, and such
    other terms and conditions as the Administrator, in its sole
    discretion, will determine. Unless the Administrator determines
    otherwise, the Company as escrow agent will hold Shares of
    Restricted Stock until the restrictions on such Shares have
    lapsed. Notwithstanding the foregoing sentence, for restricted
    stock intended to qualify as “performance-based
    compensation” within the meaning of Section 162(m) of
    the Code, during any Fiscal Year no Participant will receive
    more than an aggregate of 500,000 Shares of Restricted
    Stock. Notwithstanding the limitation in the previous sentence,
    in connection with his or her initial service as an Employee, an
    Employee may be granted Shares of Restricted Stock covering up
    to an additional 500,000 Shares. The foregoing limitations
    will be adjusted proportionately in connection with any change
    in the Company’s capitalization as described in
    Section 15.

 

    (c) Transferability.  Except as
    provided in this Section 8, Shares of Restricted Stock may
    not be sold, transferred, pledged, assigned, or otherwise
    alienated or hypothecated until the end of the applicable Period
    of Restriction.

 

    (d) Other Restrictions.  The
    Administrator, in its sole discretion, may impose such other
    restrictions on Shares of Restricted Stock as it may deem
    advisable or appropriate.

 

    (e) Removal of
    Restrictions.  Except as otherwise provided in
    this Section 8, Shares of Restricted Stock covered by each
    Restricted Stock grant made under the Plan will be released from
    escrow as soon as practicable after the last day of the Period
    of Restriction or at such other time as the Administrator may
    determine. The Administrator, in its sole discretion, may reduce
    or waive any restrictions for such Award and may accelerate the
    time at which any restrictions will lapse or be removed.

 

    (f) Voting Rights.  During the
    Period of Restriction, Service Providers holding Shares of
    Restricted Stock granted hereunder may exercise full voting
    rights with respect to those Shares, unless the Administrator
    determines otherwise.

 

    (g) Dividends and Other
    Distributions.  During the Period of
    Restriction, Service Providers holding Shares of Restricted
    Stock will be entitled to receive all dividends and other
    distributions paid with respect to such Shares, unless the
    Administrator provides otherwise. If any such dividends or
    distributions are paid in Shares, the Shares will be subject to
    the same restrictions on transferability and forfeitability as
    the Shares of Restricted Stock with respect to which they were
    paid.

    

10

 

    (h) Return of Restricted Stock to
    Company.  On the date set forth in the Award
    Agreement, the Restricted Stock for which restrictions have not
    lapsed will revert to the Company and again will become
    available for grant under the Plan.

 

    (i) Section 162(m) Performance
    Restrictions.  For purposes of qualifying
    grants of Restricted Stock as “performance-based
    compensation” under Section 162(m) of the Code, the
    Administrator, in its discretion, may set restrictions based
    upon the achievement of Performance Goals. The Performance Goals
    will be set by the Administrator on or before the Determination
    Date. In granting Restricted Stock which is intended to qualify
    under Section 162(m) of the Code, the Administrator will
    follow any procedures determined by it from time to time to be
    necessary or appropriate to ensure qualification of the Award
    under Section 162(m) of the Code (e.g., in determining the
    Performance Goals).

 

    9. Stock Units.

 

    (a) Grant.  Stock Units may be
    granted at any time and from time to time as determined by the
    Administrator. After the Administrator determines that it will
    grant Stock Units under the Plan, it will advise the Participant
    in an Award Agreement of the terms, conditions, and restrictions
    related to the grant, including the number of Stock Units.
    Notwithstanding anything to the contrary in this subsection (a),
    for Stock Units intended to qualify as “performance-based
    compensation” within the meaning of Section 162(m) of
    the Code, during any Fiscal Year of the Company, no Participant
    will receive more than an aggregate of 500,000 Stock Units.
    Notwithstanding the limitation in the previous sentence, in
    connection with his or her initial service as an Employee, an
    Employee may be granted Stock Units covering up to an additional
    500,000 Shares. The foregoing limitations will be adjusted
    proportionately in connection with any change in the
    Company’s capitalization as described in Section 15.

 

    (b) Vesting Criteria and Other
    Terms.  The Administrator will set vesting
    criteria in its discretion, which, depending on the extent to
    which the criteria are met, will determine the number of Stock
    Units that will be paid out to the Participant. The
    Administrator may set vesting criteria based upon the
    achievement of Company-wide, business unit, or individual goals
    (including, but not limited to, continued employment),
    applicable federal or state securities laws, or any other basis
    determined by the Administrator in its discretion.

 

    (c) Earning Stock Units.  Upon
    meeting the applicable vesting criteria, the Participant will be
    entitled to receive a payout as determined by the Administrator.
    Notwithstanding the foregoing, at any time after the grant of
    Stock Units, the Administrator, in its sole discretion, may
    reduce or waive any vesting criteria that must be met to receive
    a payout and may accelerate the time at which any restrictions
    will lapse or be removed.

 

    (d) Form and Timing of
    Payment.  Payment of earned Stock Units will
    be made as soon as practicable after the date(s) set forth in
    the Award Agreement or as otherwise provided in the applicable
    Award Agreement or as required by Applicable Laws. The
    Administrator, in its sole discretion, may pay earned Stock
    Units in cash, Shares, or a combination thereof. Shares
    represented by Stock Units that are fully paid in cash again
    will not reduce the number of Shares available for grant under
    the Plan.

 

    (e) Cancellation.  On the date set
    forth in the Award Agreement, all unearned Stock Units will be
    forfeited to the Company.

 

    (f) Section 162(m) Performance
    Restrictions.  For purposes of qualifying
    grants of Stock Units as “performance-based
    compensation” under Section 162(m) of the Code, the
    Administrator, in its discretion, may set restrictions based
    upon the achievement of Performance Goals. The Performance Goals
    will be set by the Administrator on or before the Determination
    Date. In granting Stock Units which are intended to qualify
    under Section 162(m) of the Code, the Administrator will
    follow any procedures determined by it from time to time to be
    necessary or appropriate to ensure qualification of the Award
    under Section 162(m) of the Code (e.g., in determining the
    Performance Goals).

 

    10. Performance Units and Performance Shares.

 

    (a) Grant of Performance
    Units/Shares.  Performance Units and
    Performance Shares may be granted to Service Providers at any
    time and from time to time, as will be determined by the
    Administrator, in its sole discretion. The Administrator will
    have complete discretion in determining the number of
    Performance Units and Performance Shares granted to each
    Participant provided that during any Fiscal Year, for
    Performance Units or

    

11

 

    Performance Shares intended to qualify as
    “performance-based compensation” within the meaning of
    Section 162(m) of the Code, (i) no Participant will
    receive Performance Units having an initial value greater than
    $5,000,000, and (ii) no Participant will receive more than
    500,000 Performance Shares. Notwithstanding the foregoing
    limitation, in connection with his or her initial service as an
    Employee, an Employee may be granted: (i) additional
    Performance Units having an initial value up to $5,000,000 and
    (ii) up to an additional 500,000 Performance Shares. The
    foregoing limitations will be adjusted proportionately in
    connection with any change in the Company’s capitalization
    as described in Section 15.

 

    (b) Value of Performance
    Units/Shares.  Each Performance Unit will have
    an initial value that is established by the Administrator on or
    before the date of grant. Each Performance Share will have an
    initial value equal to the Fair Market Value of a Share on the
    date of grant.

 

    (c) Performance Objectives and Other
    Terms.  The Administrator will set performance
    objectives or other vesting provisions (including, without
    limitation, continued status as a Service Provider) in its
    discretion which, depending on the extent to which they are met,
    will determine the number or value of Performance Units/Shares
    that will be paid out to the Service Providers. The time period
    during which the performance objectives or other vesting
    provisions must be met will be called the “Performance
    Period.” Each Award of Performance Units/Shares will be
    evidenced by an Award Agreement that will specify the
    Performance Period, and such other terms and conditions as the
    Administrator, in its sole discretion, will determine. The
    Administrator may set performance objectives based upon the
    achievement of Company-wide, divisional, or individual goals,
    applicable federal or state securities laws, or any other basis
    determined by the Administrator in its discretion.

 

    (d) Earning of Performance
    Units/Shares.  After the applicable
    Performance Period has ended, the holder of Performance
    Units/Shares will be entitled to receive a payout of the number
    of Performance Units/Shares earned by the Participant over the
    Performance Period, to be determined as a function of the extent
    to which the corresponding performance objectives or other
    vesting provisions have been achieved. Notwithstanding the
    foregoing, the Administrator will have the right to reduce or
    eliminate (but not to increase) the amount payable at a given
    level of performance to take into account additional factors
    that the Administrator may deem relevant to the assessment of
    individual or corporate performance for the Performance Period.
    After the grant of a Performance Unit/Share, the Administrator,
    in its sole discretion, may reduce or waive any performance
    objectives or other vesting provisions for such Performance
    Unit/Share and may accelerate the time at which any restrictions
    will lapse or be removed.

 

    (e) Form and Timing of Payment of Performance
    Units/Shares.  Payment of earned Performance
    Units/Shares will be made as soon as practicable after the
    expiration of the applicable Performance Period, or as otherwise
    provided in the applicable Award Agreement or as required by
    Applicable Laws. The Administrator, in its sole discretion, may
    pay earned Performance Units/Shares in the form of cash, in
    Shares (which have an aggregate Fair Market Value equal to the
    value of the earned Performance Units/Shares at the close of the
    applicable Performance Period) or in a combination thereof.

 

    (f) Cancellation of Performance
    Units/Shares.  On the date set forth in the
    Award Agreement, all unearned or unvested Performance
    Units/Shares will be forfeited to the Company, and again will be
    available for grant under the Plan.

 

    (g) Section 162(m) Performance
    Restrictions.  For purposes of qualifying
    grants of Performance Units/Shares as “performance-based
    compensation” under Section 162(m) of the Code, the
    Administrator, in its discretion, may set restrictions based
    upon the achievement of Performance Goals. The Performance Goals
    will be set by the Administrator on or before the Determination
    Date. In granting Performance Units/Shares which are intended to
    qualify under Section 162(m) of the Code, the Administrator
    will follow any procedures determined by it from time to time to
    be necessary or appropriate to ensure qualification of the Award
    under Section 162(m) of the Code (e.g., in determining the
    Performance Goals).

 

    11. Performance-Based Compensation Under Code
    Section 162(m).

 

    (a) General.  If the Administrator,
    in its discretion, decides to grant an Award intended to qualify
    as “performance-based compensation” under
    Section 162(m) of the Code, the provisions of this
    Section 11 will control over any contrary provision in the
    Plan; provided, however, that the Administrator may in its
    discretion grant Awards that are not intended to qualify as
    “performance-based compensation” under
    Section 162(m) of the Code to

    

12

 

    such Participants that are based on Performance Goals or other
    specific criteria or goals but that do not satisfy the
    requirements of this Section 11.

 

    (b) Performance Goals.  The
    granting
    and/or
    vesting of Awards of Restricted Stock, Stock Units, Performance
    Shares and Performance Units and other incentives under the Plan
    may be made subject to the attainment of performance goals
    relating to one or more business criteria within the meaning of
    Section 162(m) of the Code and may provide for a targeted
    level or levels of achievement (“Performance
    Goals”) including: attainment of research and
    development milestones, bookings, business divestitures and
    acquisitions, cash flow, cash position, contract awards or
    backlog, customer renewals, customer retention rates from an
    acquired company, business unit or division, earnings (which may
    include earnings before interest and taxes, earnings before
    taxes and net earnings), earnings per Share, expense reduction,
    gross margin, growth with respect to any of the foregoing
    measures, growth in bookings, growth in revenues, growth in
    stockholder value relative to the moving average of the S&P
    500 Index or another index, internal rate of return, market
    share, net income, net profit, net sales, new product
    development, new product invention or innovation, number of
    customers, operating cash flow, operating expenses, operating
    income, operating margin, pre-tax profit, product defect
    measures, product release timelines, productivity, profit,
    return on assets, return on capital, return on stockholder
    equity, return on investment, return on sales, revenue, revenue
    growth, sales results, sales growth, stock price increase, time
    to market, total stockholder return, working capital. Any
    criteria used may be (A) measured in absolute terms,
    (B) measured in terms of growth, (C) compared to
    another company or companies, (D) measured against the
    market as a whole
    and/or
    according to applicable market indices, (E) measured
    against the performance of the Company as a whole or a segment
    of the Company
    and/or
    (F) measured on a pre-tax or post-tax basis (if
    applicable). Further, any Performance Goals may be used to
    measure the performance of the Company as a whole or a business
    unit or other segment of the Company, or one or more product
    lines or specific markets and may be measured relative to a peer
    group or index. The Performance Goals may differ from
    Participant to Participant and from Award to Award. Prior to the
    Determination Date, the Administrator will determine whether any
    significant element(s) will be included in or excluded from the
    calculation of any Performance Goal with respect to any
    Participant. In all other respects, Performance Goals will be
    calculated in accordance with the Company’s financial
    statements, generally accepted accounting principles, or under a
    methodology established by the Administrator prior to or at the
    time the issuance of an Award and which is consistently applied
    with respect to a Performance Goal in the relevant Performance
    Period. The Administrator will appropriately adjust any
    evaluation of performance under a Performance Goal to exclude
    (i) any extraordinary non-recurring items as described in
    Accounting Principles Board Opinion No. 30
    and/or in
    management’s discussion and analysis of financial
    conditions and results of operations appearing in the
    Company’s annual report to stockholders for the applicable
    year, or (ii) the effect of any changes in accounting
    principles affecting the Company’s or a business
    units’ reported results. In addition, the Administrator
    will adjust any performance criteria, Performance Goal or other
    feature of an Award that relates to or is wholly or partially
    based on the number of, or the value of, any stock of the
    Company, to reflect any stock dividend or split, repurchase,
    recapitalization, combination, or exchange of shares or other
    similar changes in such stock.

 

    (c) Procedures.  To the extent
    necessary to comply with the performance-based compensation
    provisions of Section 162(m) of the Code, with respect to
    any Award granted subject to Performance Goals and intended to
    qualify as “performance-based compensation” under
    Section 162(m) of the Code, within the first twenty-five
    percent (25%) of the Performance Period, but in no event more
    than ninety (90) days following the commencement of any
    Performance Period (or such other time as may be required or
    permitted by Section 162(m) of the Code), the Administrator
    will, in writing, (i) designate one or more Participants to
    whom an Award will be made, (ii) select the Performance
    Goals applicable to the Performance Period, (iii) establish
    the Performance Goals, and amounts of such Awards, as
    applicable, which may be earned for such Performance Period, and
    (iv) specify the relationship between Performance Goals and
    the amounts of such Awards, as applicable, to be earned by each
    Participant for such Performance Period.

 

    (d) Additional
    Limitations.  Notwithstanding any other
    provision of the Plan, any Award which is granted to a
    Participant and is intended to constitute qualified
    performance-based compensation under Section 162(m) of the
    Code will be subject to any additional limitations set forth in
    the Code (including any amendment to Section 162(m)) or any
    regulations and ruling issued thereunder that are requirements
    for qualification as qualified performance-

    

13

 

    based compensation as described in Section 162(m) of the
    Code, and the Plan will be deemed amended to the extent
    necessary to conform to such requirements.

 

    (e) Determination of Amounts
    Earned.  Following the completion of each
    Performance Period, the Administrator will certify in writing
    whether the applicable Performance Goals have been achieved for
    such Performance Period. A Participant will be eligible to
    receive payment pursuant to an Award intended to qualify as
    “performance-based compensation” under
    Section 162(m) of the Code for a Performance Period only if
    the Performance Goals for such period are achieved. In
    determining the amounts earned by a Participant pursuant to an
    Award intended to qualified as “performance-based
    compensation” under Section 162(m) of the Code, the
    Administrator will have the right to (a) reduce or
    eliminate (but not to increase) the amount payable at a given
    level of performance to take into account additional factors
    that the Administrator may deem relevant to the assessment of
    individual or corporate performance for the Performance Period,
    (b) determine what actual Award, if any, will be paid in
    the event of a termination of employment as the result of a
    Participant’s death or disability or upon a Change in
    Control or in the event of a termination of employment following
    a Change in Control prior to the end of the Performance Period,
    and (c) determine what actual Award, if any, will be paid
    in the event of a termination of employment other than as the
    result of a Participant’s death or disability prior to a
    Change of Control and prior to the end of the Performance Period
    to the extent an actual Award would have otherwise been achieved
    had the Participant remained employed through the end of the
    Performance Period.

 

    12. Compliance With Code
    Section 409A.  Awards will be designed
    and operated in such a manner that they are either exempt from
    the application of, or comply with, the requirements of Code
    Section 409A such that the grant, payment, settlement or
    deferral will not be subject to the additional tax or interest
    applicable under Code Section 409A, except as otherwise
    determined in the sole discretion of the Administrator. The Plan
    and each Award Agreement under the Plan is intended to meet the
    requirements of Code Section 409A and will be construed and
    interpreted in accordance with such intent, except as otherwise
    determined in the sole discretion of the Administrator. To the
    extent that an Award or payment, or the settlement or deferral
    thereof, is subject to Code Section 409A the Award will be
    granted, paid, settled or deferred in a manner that will meet
    the requirements of Code Section 409A, such that the grant,
    payment, settlement or deferral will not be subject to the
    additional tax or interest applicable under Code
    Section 409A.

 

    13. Leaves of Absence/Transfer Between
    Locations.  Unless the Administrator provides
    otherwise and except as required by Applicable Laws, vesting of
    Awards granted hereunder will be suspended during any unpaid
    leave of absence. A Participant will not cease to be an Employee
    in the case of (i) any leave of absence approved by the
    Company or (ii) transfers between locations of the Company
    or between the Company, its Parent, or any Subsidiary. For
    purposes of Incentive Stock Options, no such leave may exceed
    three (3) months, unless reemployment upon expiration of
    such leave is guaranteed by statute or contract. If reemployment
    upon expiration of a leave of absence approved by the Company is
    not so guaranteed, then six (6) months following the first
    (1st) day of such leave, any Incentive Stock Option held by the
    Participant will cease to be treated as an Incentive Stock
    Option and will be treated for tax purposes as a Nonstatutory
    Stock Option.

 

    14. Transferability of Awards.

 

    (a) Non-Transferability of
    Awards.  Unless determined otherwise by the
    Administrator, an Award may not be sold, pledged, assigned,
    hypothecated, transferred, or disposed of in any manner other
    than by will or by the laws of descent or distribution and may
    be exercised, during the lifetime of the Participant, only by
    the Participant.

 

    (b) Prohibition Against an Award Transfer
    Program.  Notwithstanding anything to the
    contrary in the Plan, in no event will the Administrator have
    the right to determine and implement the terms and conditions of
    any Award Transfer Program without stockholder approval.

 

    15. Adjustments; Dissolution or Liquidation; Merger
    or Change in Control.

 

    (a) Adjustments.  In the event that
    any dividend or other distribution (whether in the form of cash,
    Shares, other securities, or other property), recapitalization,
    stock split, reverse stock split, reorganization, merger,
    consolidation,
    split-up,
    spin-off, combination, repurchase, or exchange of Shares or
    other securities of the Company, or other change in the
    corporate structure of the Company affecting the Shares occurs,
    the Administrator,

    

14

 

    in order to prevent diminution or enlargement of the benefits or
    potential benefits intended to be made available under the Plan,
    will make such adjustments as it, in its sole discretion, deems
    appropriate in one or more of:

 

    (i) the number and class of Shares that may be delivered
    under the Plan;

 

    (ii) the number, class, and price of Shares covered by each
    outstanding Award; or

 

    (iii) the numerical Share limits set forth in
    Sections 3, 6, 7, 8, 9 and 10 of the Plan.

 

    (b) Dissolution or Liquidation.  In
    the event of the proposed dissolution or liquidation of the
    Company, the Administrator will notify each Participant as soon
    as practicable prior to the effective date of such proposed
    transaction. To the extent it has not been previously exercised,
    an Award will terminate immediately prior to the consummation of
    such proposed action.

 

    (c) Change in Control.  In the
    event of a merger or Change in Control, each outstanding Award
    will be treated as the Administrator determines without a
    Participant’s consent, including, without limitation, that:

 

    (i) Awards will be assumed, or substantially equivalent
    Awards will be substituted, by the acquiring or succeeding
    corporation (or an affiliate thereof) with appropriate
    adjustments as to the number and kind of shares and prices;

 

    (ii) upon written notice to a Participant, that the
    Participant’s Awards will terminate upon or immediately
    prior to the consummation of such merger or Change in Control
    (for the avoidance of doubt, if Awards (or portion thereof) are
    not assumed or substituted by the successor corporation, a
    Participant’s Awards will not be terminate before fully
    vesting as provided for in this Section 15(c));

 

    (iii) outstanding Awards will vest and become exercisable,
    realizable, or payable, or restrictions applicable to an Award
    will lapse, in whole or in part prior to or upon consummation of
    such merger or Change in Control, and, to the extent the
    Administrator determines, terminate upon or immediately prior to
    the effectiveness of such merger of Change in Control;

 

    (iv) (A) the termination of an Award in exchange for
    an amount of cash
    and/or
    property, if any, equal to the amount that would have been
    attained upon the exercise of such Award or realization of the
    Participant’s rights as of the date of the occurrence of
    the transaction (and, for the avoidance of doubt, if as of the
    date of the occurrence of the transaction the Administrator
    determines in good faith that no amount would have been attained
    upon the exercise of such Award or realization of the
    Participant’s rights, then such Award may be terminated by
    the Company without payment), or (B) the replacement of
    such Award with other rights or property selected by the
    Administrator in its sole discretion; or

 

    (v) any combination of the foregoing.

 

    In taking any of the actions permitted under this subsection
    15(c), the Administrator will not be obligated to treat all
    Awards, all Awards held by a Participant, or all Awards of the
    same type, similarly.

 

    In the event that the successor corporation does not assume or
    substitute for the Award (or portion thereof), the Participant
    will fully vest in and have the right to exercise all of his or
    her outstanding Options and Stock Appreciation Rights that are
    not assumed or substituted for, including Shares as to which
    such Awards would not otherwise be vested or exercisable, all
    restrictions on Restricted Stock, Stock Units, and Performance
    Shares/Units not assumed or substituted for will lapse, and,
    with respect to Awards with performance-based vesting not
    assumed or substituted for, all performance goals or other
    vesting criteria will be deemed achieved at one hundred percent
    (100%) of target levels and all other terms and conditions met.
    In addition, if an Option or Stock Appreciation Right is not
    assumed or substituted for in the event of a Change in Control,
    the Company will notify the Participant in writing or
    electronically that the Option or Stock Appreciation Right will
    be fully vested and exercisable for a period of time determined
    by the Administrator in its sole discretion, and the Option or
    Stock Appreciation Right will terminate upon the expiration of
    such period.

 

    For the purposes of this subsection (c), an Award will be
    considered assumed if, following the Change in Control, the
    Award confers the right to purchase or receive, for each Share
    subject to the Award immediately prior to the Change in Control,
    the consideration (whether stock, cash, or other securities or
    property) or, in the case of a

    

15

 

    Stock Appreciation Right upon the exercise of which the
    Administrator determines to pay cash or a Stock Unit,
    Performance Share or Performance Unit which the Administrator
    can determine to pay in cash, the fair market value of the
    consideration received in the merger or Change in Control by
    holders of Common Stock for each Share held on the effective
    date of the transaction (and if holders were offered a choice of
    consideration, the type of consideration chosen by the holders
    of a majority of the outstanding Shares); provided, however,
    that if such consideration received in the Change in Control is
    not solely common stock of the successor corporation or its
    Parent, the Administrator may, with the consent of the successor
    corporation, provide for the consideration to be received upon
    the exercise of an Option or Stock Appreciation Right or upon
    the payout of a Stock Unit, Performance Unit or Performance
    Share, for each Share subject to such Award (or in the case of
    an Award settled in cash, the number of implied shares
    determined by dividing the value of the Award by the per share
    consideration received by holders of Common Stock in the Change
    in Control), to be solely common stock of the successor
    corporation or its Parent equal in fair market value to the per
    share consideration received by holders of Common Stock in the
    Change in Control.

 

    Notwithstanding anything in this Section 15(c) to the
    contrary, an Award that vests, is earned or paid-out upon the
    satisfaction of one or more Performance Goals will not be
    considered assumed if the Company or its successor modifies any
    of such Performance Goals without the Participant’s
    consent; provided, however, a modification to such Performance
    Goals only to reflect the successor corporation’s
    post-Change in Control corporate structure will not be deemed to
    invalidate an otherwise valid Award assumption.

 

    Notwithstanding anything in this Section 15(c) to the
    contrary, if a payment under an Award Agreement is subject to
    Section 409A of the Code and if the change in control
    definition contained in the Award Agreement or other agreement
    related to the Award does not comply with the definition of
    “change in control” for purposes of a distribution
    under Section 409A of the Code, then any payment of an
    amount that is otherwise accelerated under this Section will be
    delayed until the earliest time that such payment would be
    permissible under Section 409A of the Code without
    triggering any penalties applicable under Section 409A of
    the Code.

 

    16. Tax Withholding.

 

    (a) Withholding
    Requirements.  Prior to the delivery of any
    Shares or cash pursuant to an Award (or exercise thereof), the
    Company will have the power and the right to deduct or withhold,
    or require a Participant to remit to the Company, an amount
    sufficient to satisfy federal, state, local, foreign or other
    taxes (including the Participant’s FICA obligation)
    required to be withheld with respect to such Award (or exercise
    thereof).

 

    (b) Withholding Arrangements.  The
    Administrator, in its sole discretion and pursuant to such
    procedures as it may specify from time to time, may permit a
    Participant to satisfy such tax withholding obligation, in whole
    or in part by (without limitation) (a) paying cash,
    (b) electing to have the Company withhold otherwise
    deliverable cash or Shares having a Fair Market Value equal to
    the amount required to be withheld, (c) delivering to the
    Company already-owned Shares having a Fair Market Value equal to
    the amount required to be withheld, provided the delivery of
    such Shares will not result in any adverse accounting
    consequences as the Administrator determines in its sole
    discretion, (d) selling a sufficient number of Shares
    otherwise deliverable to the Participant through such means as
    the Administrator may determine in its sole discretion (whether
    through a broker or otherwise) equal to the amount required to
    be withheld, or (e) retaining from salary or other amounts
    payable to the Participant cash having a sufficient value to
    satisfy the amount required to be withheld. The amount of the
    withholding requirement will be deemed to include any amount
    which the Administrator agrees may be withheld at the time the
    election is made, not to exceed the amount determined by using
    the maximum federal, state or local marginal income tax rates
    applicable to the Participant with respect to the Award on the
    date that the amount of tax to be withheld is to be determined.
    The Fair Market Value of the Shares to be withheld or delivered
    will be determined as of the date that the taxes are required to
    be withheld.

 

    17. No Effect on Employment or
    Service.  Neither the Plan nor any Award will
    confer upon a Participant any right with respect to continuing
    the Participant’s relationship as a Service Provider with
    the Company, nor will they interfere in any way with the
    Participant’s right or the Company’s right to
    terminate such relationship at any time, with or without cause,
    to the extent permitted by Applicable Laws.

    

16

 

    18. Date of Grant.  The date of
    grant of an Award will be, for all purposes, the date on which
    the Administrator makes the determination granting such Award,
    or such other later date as is determined by the Administrator.
    Notice of the determination will be provided to each Participant
    within a reasonable time after the date of such grant.

 

    19. Term of Plan.  The Plan is
    effective as of its approval by the stockholders of the Company
    at the Company’s 2010 annual meeting of stockholders as
    described in Section 23 of the Plan. It will continue in
    effect for a term of ten (10) years from the Plan’s
    initial effectiveness, unless terminated earlier under
    Section 20 of the Plan.

 

    20. Amendment and Termination of the Plan.

 

    (a) Amendment and Termination.  The
    Administrator may at any time amend, alter, suspend or terminate
    the Plan.

 

    (b) Stockholder Approval.  The
    Company will obtain stockholder approval of any Plan amendment
    to the extent necessary and desirable to comply with Applicable
    Laws.

 

    (c) Effect of Amendment or
    Termination.  No amendment, alteration,
    suspension or termination of the Plan will impair the rights of
    any Participant, unless mutually agreed otherwise between the
    Participant and the Administrator, which agreement must be in
    writing and signed by the Participant and the Company.
    Termination of the Plan will not affect the Administrator’s
    ability to exercise the powers granted to it hereunder with
    respect to Awards granted under the Plan prior to the date of
    such termination.

 

    21. Conditions upon Issuance of Shares.

 

    (a) Legal Compliance.  Shares will
    not be issued pursuant to the exercise of an Award unless the
    exercise of such Award and the issuance and delivery of such
    Shares will comply with Applicable Laws and will be further
    subject to the approval of counsel for the Company with respect
    to such compliance.

 

    (b) Investment Representations.  As
    a condition to the exercise of an Award, the Company may require
    the person exercising such Award 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.

 

    22. Inability to Obtain
    Authority.  The inability of the Company to
    obtain authority from any regulatory body having jurisdiction,
    which authority is deemed by the Company’s counsel to be
    necessary to the lawful issuance and sale of any Shares
    hereunder, will relieve the Company of any liability in respect
    of the failure to issue or sell such Shares as to which such
    requisite authority will not have been obtained.

 

    23. Stockholder Approval.  The Plan
    will be subject to approval by the stockholders of the Company
    at the Company’s 2010 annual meeting of stockholders. Such
    stockholder approval will be obtained in the manner and to the
    degree required under Applicable Laws.

    

17exv10w2

 

    Exhibit
10.2

 

    MCAFEE,
    INC.

    

 

    2010
    DIRECTOR EQUITY PLAN

 

    1. Purposes of the Plan.  The
    purposes of this Plan are to attract and retain the best
    available personnel for service as Outside Directors of the
    Company, to provide additional incentive to the Outside
    Directors of the Company to serve as Directors, and to encourage
    their continued service on the Board.

 

    The Plan permits the grant of Options and Stock Units. All
    Options granted hereunder will be nonstatutory stock options.

 

    Under the Plan the annual grants will be made on the date of the
    Company’s Annual Meeting. The Plan will be effective as of
    its approval by stockholders of the Company at the
    Company’s 2010 Annual Meeting.

 

    2. Definitions.  As used herein,
    the following definitions will apply:

 

    (a) “Annual Meeting” means the
    Company’s annual meeting of stockholders.

 

    (b) “Applicable Laws” means the
    requirements relating to the administration of equity-based
    awards under U.S. state corporate laws, U.S. federal
    and state securities laws, the Code, any stock exchange or
    quotation system on which the Common Stock is listed or quoted
    and the applicable laws of any foreign country or jurisdiction
    where Awards are, or will be, granted under the Plan.

 

    (c) “Award” means, individually or
    collectively, a grant under the Plan of Options or Stock Units.

 

    (d) “Award Agreement” means the
    written or electronic agreement setting forth the terms and
    provisions applicable to each Award granted under the Plan. The
    Award Agreement is subject to the terms and conditions of the
    Plan.

 

    (e) “Award Transfer Program” means
    any program instituted by the Board that would permit
    Participants the opportunity to transfer for value any
    outstanding Awards to a financial institution or other person or
    entity approved by the Board.

 

    (f) “Board” means the Board of
    Directors of the Company, or a duly authorized committee of the
    Board of Directors of the Company.

 

    (g) “Change in Control” means the
    occurrence of any of the following events:

 

    (i) Change in Ownership of the
    Company.  A change in the ownership of the
    Company which occurs on the date that any one person, or more
    than one person acting as a group (“Person”), acquires
    ownership of the stock of the Company that, together with the
    stock held by such Person, constitutes more than fifty percent
    (50%) of the total voting power of the stock of the Company;
    provided, however, that for purposes of this clause (i), the
    acquisition of additional stock by any one Person, who is
    considered to own more than fifty percent (50%) of the total
    voting power of the stock of the Company will not be considered
    a Change in Control; or

 

    (ii) Change in Effective Control of the
    Company.  If the Company has a class of
    securities registered pursuant to Section 12 of the
    Exchange Act, a change in the effective control of the Company
    which occurs on the date that a majority of members of the Board
    is replaced during any twelve (12) month period by
    Directors whose appointment or election is not endorsed by a
    majority of the members of the Board prior to the date of the
    appointment or election. For purposes of this clause (ii), if
    any Person is considered to be in effective control of the
    Company, the acquisition of additional control of the Company by
    the same Person will not be considered a Change in
    Control; or

 

    (iii) Change in Ownership of a Substantial Portion of
    the Company’s Assets.  A change in the
    ownership of a substantial portion of the Company’s assets
    which occurs on the date that any Person acquires (or has
    acquired during the twelve (12) month period ending on the
    date of the most recent acquisition by such person or persons)
    assets from the Company that have a total gross fair market
    value

    

1

 

    equal to or more than fifty percent (50%) of the total gross
    fair market value of all of the assets of the Company
    immediately prior to such acquisition or acquisitions; provided,
    however, that for purposes of this subsection (iii), the
    following will not constitute a change in the ownership of a
    substantial portion of the Company’s assets: (A) a
    transfer to an entity that is controlled by the Company’s
    stockholders immediately after the transfer, or (B) a
    transfer of assets by the Company to: (1) a stockholder of
    the Company (immediately before the asset transfer) in exchange
    for or with respect to the Company’s stock, (2) an
    entity, fifty percent (50%) or more of the total value or voting
    power of which is owned, directly or indirectly, by the Company,
    (3) a Person, that owns, directly or indirectly, fifty
    percent (50%) or more of the total value or voting power of all
    the outstanding stock of the Company, or (4) an entity, at
    least fifty percent (50%) of the total value or voting power of
    which is owned, directly or indirectly, by a Person described in
    this subsection (iii)(B)(3). For purposes of this subsection
    (iii), gross fair market value means the value of the assets of
    the Company, or the value of the assets being disposed of,
    determined without regard to any liabilities associated with
    such assets.

 

    For purposes of this Section 2(h), persons will be
    considered to be acting as a group if they are owners of a
    corporation that enters into a merger, consolidation, purchase
    or acquisition of stock, or similar business transaction with
    the Company.

 

    Notwithstanding the foregoing, a transaction will not be deemed
    a Change in Control unless the transaction qualifies as a change
    in control event within the meaning of Code Section 409A,
    as it has been and may be amended from time to time, and any
    proposed or final Treasury Regulations and Internal Revenue
    Service guidance that has been promulgated or may be promulgated
    thereunder from time to time.

 

    Further and for the avoidance of doubt, a transaction will not
    constitute a Change in Control if: (i) its sole purpose is
    to change the state of the Company’s incorporation, or
    (ii) its sole purpose is to create a holding company that
    will be owned in substantially the same proportions by the
    persons who held the Company’s securities immediately
    before such transaction.

 

    (h) “Code” means the Internal
    Revenue Code of 1986, as amended. Reference to a specific
    section of the Code or Treasury Regulation thereunder will
    include such section or regulation, any valid regulation or
    other official applicable guidance promulgated under such
    section, and any comparable provision of any future legislation
    or regulation amending, supplementing or superseding such
    section or regulation.

 

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

 

    (j) “Company” means McAfee, Inc., a
    Delaware corporation, or any successor thereto.

 

    (k) “Director” means a member of
    the Board.

 

    (l) “Disability” means total and
    permanent disability as defined in Section 22(e)(3) of the
    Code, provided that the Board in its discretion may determine
    whether a permanent and total disability exists in accordance
    with uniform and non-discriminatory standards adopted by the
    Board from time to time.

 

    (m) “Employee” means any person,
    including officers and Directors, employed by the Company or any
    Parent or Subsidiary of the Company. Neither service as a
    Director nor the payment of a Director’s fee by the Company
    will be sufficient to constitute “employment” by the
    Company.

 

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

 

    (o) “Fair Market Value” means, as
    of any date, the value of Common Stock determined as follows:

 

    (i) If the Common Stock is listed on any established stock
    exchange or a national market system, including without
    limitation the Nasdaq Global Market, the Nasdaq Global Select
    Market or the Nasdaq Capital Market of The Nasdaq Stock Market,
    its fair market value will be the closing sales price for such
    stock (or, if no closing sales price was reported on that date,
    as applicable, on the last trading date such closing sales price
    was reported) as quoted on such exchange or system on the day of
    determination, as reported in The Wall Street Journal or such
    other source as the Board deems reliable;

    

2

 

    (ii) If the Common Stock is regularly quoted by a
    recognized securities dealer but selling prices are not
    reported, its fair market value will be the mean between the
    high bid and low asked prices for the Common Stock on the day of
    determination (or, if no bids and asks were reported on that
    date, as applicable, on the last trading date such bids and asks
    were reported); or (iii) In the absence of an established
    market for the Common Stock, the fair market value thereof will
    be determined in good faith by the Board.

 

    (p) “Inside Director” means a
    Director who is an Employee.

 

    (q) “Option” means a stock option
    granted pursuant to the Plan.

 

    (r) “Outside Director” means a
    Director who is not an Employee.

 

    (s) “Parent” means a “parent
    corporation,” whether now or hereafter existing, as defined
    in Section 424(e) of the Code.

 

    (t) “Participant” means the holder
    of an outstanding Award.

 

    (u) “Plan” means this
    2010 Director Equity Plan.

 

    (v) “Securities Act” means the
    Securities Act of 1933, as amended.

 

    (w) “Share” means a share of the
    Common Stock, as adjusted in accordance with Section 13 of
    the Plan.

 

    (x) “Stock Unit” means a
    bookkeeping entry representing an amount equal to the Fair
    Market Value of one Share, and granted to a Participant pursuant
    to Section 6 of the Plan. Each restricted stock unit
    represents an unfunded and unsecured obligation of the Company.

 

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

 

    3. Stock Subject to the Plan.

 

    (a) Stock Subject to the
    Plan.  Subject to the provisions of
    Section 13 of the Plan, the maximum aggregate number of
    Shares that may be awarded under the Plan is the number of
    Shares available for issuance under the Company Amended and
    Restated 1993 Stock Plan for Outside Directors (the “1993
    Plan”) plus: (i) the additional Shares described in
    Section 3(c), and (ii) any Shares subject to stock
    options or stock units under the 1993 Plan that expire or
    otherwise terminate without having been exercised in full and
    Shares issues pursuant to awards granted under the 1993 Plan
    that are forfeited to or repurchased by the Company, with the
    maximum number of Shares to be added to the Plan pursuant to
    this clause (ii) equal to 554,428 Shares. The Shares
    may be authorized, but unissued, or reacquired Common Stock.

 

    (b) Full Value Awards.  An Award of
    Stock Units will be counted against the numerical limits of this
    Section 3 as two and forty-three hundredths (2.43) Shares
    for every 1 Share subject thereto. Further, if Shares
    acquired pursuant to any such Award are forfeited or repurchased
    by the Company and would otherwise return to the Plan pursuant
    to Section 3(c), two and forty-three hundredths (2.43)
    times the number of Shares so forfeited or repurchased will
    return to the Plan and will again become available for issuance.

 

    (c) Lapsed Awards.  If an
    outstanding Award expires or becomes unexercisable without
    having been exercised in full, or with respect to Stock Units,
    is forfeited to the Company due to failure to vest, the
    unpurchased or forfeited Shares which were subject thereto will
    become available for future grant or sale under the Plan (unless
    the Plan has terminated). Shares that have actually been issued
    under the Plan will not be returned to the Plan and will not
    become available for future distribution under the Plan. Shares
    used to pay the exercise price of an Award or to satisfy the tax
    withholding obligations related to an Award will not become
    available for future grant or sale under the Plan. Shares
    purchased by the Company in the open market with the proceeds
    from the sale of Shares pursuant to the exercise of Options will
    not be available for issuance under the Plan. To the extent an
    Award under the Plan is paid out in cash rather than Shares,
    such cash payment will not result in reducing the number of
    Shares available for issuance under the Plan.

    

3

 

    4. Administration.

 

    (a) Administration.  The Plan shall
    be administered by the Board
    and/or any
    duly appointed committee of the Board having such powers as
    shall be specified by the Board. Unless the powers of the
    committee have been specifically limited, the committee shall
    have all of the powers of the Board granted herein, including,
    without limitation, the power to terminate or amend the Plan at
    any time, subject to the terms of the Plan and any applicable
    limitations imposed by law. The Board shall have no authority,
    discretion, or power to select the Outside Directors who will
    receive Options
    and/or Stock
    Units under the Plan, to set the exercise price of the Options,
    to determine the number of Shares to be granted under Options
    and/or Stock
    Units or the time at which such Options
    and/or Stock
    Units are to be granted, to establish the duration of Options
    and/or Stock
    Units, or alter any other terms or conditions specified in the
    Plan, except in the sense of administering the Plan subject to
    the provisions of the Plan, including the authority to determine
    the Fair Market Value of a Share, and to determine the
    Black-Scholes value of an Option to purchase a Share. All
    questions of interpretation of the Plan or of any Options
    and/or Stock
    Units granted under the Plan shall be determined by the Board,
    and such determinations shall be final and binding upon all
    persons having an interest in the Plan
    and/or any
    Option or Stock Unit. Any officer of the Company shall have the
    authority to act on behalf of the Company with respect to any
    matter, right, obligation, or election which is the
    responsibility of or which is allocated to the Company herein,
    provided the officer has apparent authority with respect to such
    matter, right, obligation, or election.

 

    (b) Prohibition Against
    Repricing.  Subject to the provisions of
    Section 13 of the Plan, the terms of any Option may not be
    amended to reduce the exercise price of outstanding Options or
    cancel outstanding Options in exchange for cash, other Awards or
    Options with an exercise price that is less than the exercise
    price of the original Option without stockholder approval.

 

    5. Stock Options.

 

    (a) Grant of Stock Options.  All
    grants of Options to Outside Directors under this Plan will be
    automatic and nondiscretionary and will be made strictly in
    accordance with Sections 7 and 8; provided, however, that
    the Board may, in its sole discretion, provide that certain
    Outside Directors are not eligible to receive grants of Options
    for specified periods of time.

 

    Notwithstanding anything herein to the contrary, the date of
    grant of an Option shall be the date on which the Board makes
    the determination granting such Option or, in the event that the
    Annual Meeting, the date of the Outside Director’s election
    as a Director,
    and/or the
    Outside Director’s appointment to the Board takes place
    during a period in which the trading window is closed, on such
    future date as the Board may specify at that time (e.g., two
    (2) days after the Company’s next public earnings
    announcement). Notice of the determination shall be given to
    each individual to whom an Option is so granted promptly but in
    no event more than three (3) weeks after the date of such
    grant. Determination shall be defined as including at a minimum,
    the number of Shares subject to Options granted to each
    individual and the terms of such Options.

 

    (b) Option Agreement.

 

    (i) Terms and Conditions.  Each
    Option grant will be evidenced by an Award Agreement that will
    specify the terms and conditions of the Options.

 

    (ii) Form of Consideration.  The
    Award Agreement will specify the form(s) of consideration for
    exercising an Option. Such consideration to the extent permitted
    by Applicable Laws may include, but is not limited to:

 

    (1) cash;

 

    (2) check;

 

    (3) other Shares which have a Fair Market Value on the date
    of surrender equal to the aggregate exercise price of the Shares
    as to which said Option will be exercised and provided that
    accepting such Shares, in the sole discretion of the Board, will
    not result in any adverse accounting consequences to the Company;

 

    (4) by net exercise;

    

4

 

    (5) consideration received by the Company under a cashless
    exercise program implemented by the Company in connection with
    the Plan;

 

    (6) a reduction in the amount of any Company liability to
    the Participant, including any liability attributable to the
    Participant’s participation in any Company-sponsored
    deferred compensation program or arrangement;

 

    (7) such other consideration and method of payment for the
    issuance of Shares to the extent permitted by Applicable
    Laws; or

 

    (8) any combination of the foregoing methods of payment.

 

    (c) Procedure for Exercise of an Option; Rights as
    Stockholder.  Any Option granted hereunder
    will be exercisable at such times as are set forth in
    Section 7(a) or 8(a), as applicable. An Option may not be
    exercised for a fraction of a Share.

 

    An Option will be deemed to be exercised when the Company
    receives: (i) written or electronic notice of exercise (in
    accordance with the terms of the Option) from the person
    entitled to exercise the Option and (ii) full payment for
    the Shares with respect to which the Option is exercised
    (together with applicable tax withholdings). Full payment may
    consist of any consideration and method of payment allowable by
    the Award Agreement and Section 5(b)(ii) of the Plan.
    Shares issued upon exercise of an Option will be issued in the
    name of the Participant. Until the Shares are issued (as
    evidenced by the appropriate entry on the books of the Company
    or of a duly authorized transfer agent of the Company), no right
    to vote or receive dividends or any other rights as a
    stockholder will exist with respect to the Shares subject to any
    Option, notwithstanding the exercise of the Option. The Company
    will issue (or cause to be issued) such Shares promptly after
    the Option is exercised. No adjustment will be made for a
    dividend or other right for which the record date is prior to
    the date the stock certificate is issued, except as provided in
    Section 13 of the Plan.

 

    Exercise of an Option in any manner will result in a decrease in
    the number of Shares which thereafter may be available, both for
    purposes of the Plan and for sale under the Option, by the
    number of Shares as to which the Option is exercised.

 

    (d) Termination of Continuous Status as a
    Director.  Subject to Section 13, in the
    event an Participant’s status as a Director terminates
    (other than upon the Participant’s death or Disability),
    the Participant may exercise his or her Option, but only within
    three (3) months following the date of such termination,
    and only to the extent that the Participant was entitled to
    exercise it on the date of such termination (but in no event
    later than the expiration of its seven (7) year term). To
    the extent that the Participant was not entitled to exercise an
    Option on the date of such termination, and to the extent that
    the Participant does not exercise such Option (to the extent
    otherwise so entitled) within the time specified herein, the
    Option will terminate.

 

    (e) Disability of Participant.  In
    the event Participant’s status as a Director terminates as
    a result of Disability, the Participant may exercise his or her
    Option, but only within twelve (12) months following the
    date of such termination, and only to the extent that the
    Participant was entitled to exercise it on the date of such
    termination (but in no event later than the expiration of its
    seven (7) year term). To the extent that the Participant
    was not entitled to exercise an Option on the date of
    termination, or if he or she does not exercise such Option (to
    the extent otherwise so entitled) within the time specified
    herein, the Option will terminate and the Shares covered by such
    Option will revert to the Plan.

 

    (f) Death of Participant.  If a
    Participant dies while still a Director or within the three
    (3) month post-termination exercise period set forth in
    Section 5(d), the Participant’s estate or a person who
    acquired the right to exercise the Option by bequest or
    inheritance may exercise the Option, but only within twelve
    (12) months following the date of death, and only to the
    extent that the Participant was entitled to exercise it on the
    date of death (but in no event later than the expiration of its
    seven (7) year term). To the extent that the Participant
    was not entitled to exercise an Option on the date of death, and
    to the extent that the Participant’s estate or a person who
    acquired the right to exercise such Option does not exercise
    such Option (to the extent otherwise so entitled) within the
    time specified herein, the Option will terminate and the Shares
    covered by such Option will revert to the Plan.

    

5

 

    (g) Other Termination.  A
    Participant’s Award Agreement also may provide that if the
    exercise of the Option following the termination of
    Participant’s status as a Director (other than upon the
    Participant’s death or Disability) would result in
    liability under Section 16(b) of the Exchange Act, then the
    Option will terminate on the earlier of (i) the expiration
    of the term of the Option set forth in the Award Agreement, or
    (ii) the tenth (10th) day after the last date on which such
    exercise would result in such liability under Section 16(b)
    of the Exchange Act. Finally, a Participant’s Award
    Agreement may also provide that if the exercise of the Option
    following the termination of the Participant’s status as a
    Director (other than upon the Participant’s death or
    Disability) would be prohibited at any time solely because the
    issuance of Shares would violate the registration requirements
    under the Securities Act, then the Option will terminate on the
    earlier of (x) the expiration of the term of the Option, or
    (y) the expiration of a period of three (3) months
    after the termination of the Participant’s status as a
    Director during which the exercise of the Option would not be in
    violation of such registration requirements.

 

    6. Stock Units.

 

    (a) Procedures for Grants.  All
    grants of Stock Units to Outside Directors under this Plan will
    be automatic and nondiscretionary and will be made strictly in
    accordance with Sections 7 and 8; provided, however, that
    the Board may, in its sole discretion, provide that certain
    Outside Directors are not eligible to receive grants of Stock
    Units for specified periods of time. No person will have any
    discretion to determine the number of Shares to be covered by
    Stock Units.

 

    (b) Form and Timing of
    Payment.  Stock Units will be settled in the
    form of (i) cash, (ii) Shares, or (iii) a
    combination of both, as determined by the Board. Notwithstanding
    anything herein to the contrary, the Fair Market Value of a
    Stock Unit grant shall be the closing price on the day of
    determination unless otherwise determined by the Board. Methods
    of converting Stock Units into cash for settlement may include
    (without limitation) a method based on the average Fair Market
    Value of Shares over a series of trading days. Vested Stock
    Units may be settled in lump-sum or in installments. The
    distribution may occur or commence when all vesting conditions
    applicable to the Stock Units have been satisfied or have
    lapsed, subject to Section 21. The payment of vested Stock
    Units will be made as soon as practicable after the date(s)
    determined by the Board but no later than
    March 15th of the calendar year following the
    applicable vesting date. Until an Award of Stock Units is
    settled, the number of such Stock Units shall be subject to
    adjustment pursuant to Section 13.

 

    (c) Cancellation.  On the date of
    Participant’s termination as a Director, all unvested Stock
    Units will be forfeited to the Company.

 

    (d) Additional Stock Unit Terms.

 

    (i) Company’s Obligation to
    Pay.  Unless and until the Stock Units have vested
    in the manner set forth above, the Participant will have no
    right to payment of such Stock Units. Prior to the vesting of
    any Stock Units, such Stock Units will represent an unsecured
    obligation. To the extent that Stock Units are settled in
    Shares, payment of any vested Stock Units will be made in whole
    Shares.

 

    (ii) Rights as Stockholder.  Neither the
    Participant nor any person claiming under or through the
    Participant will have any of the rights or privileges of a
    stockholder of the Company in respect of any Shares deliverable
    hereunder unless and until certificates representing such Shares
    (which may be in book entry form) will have been issued,
    recorded on the records of the Company or its transfer agents or
    registrars, and delivered to the Participant (including through
    electronic delivery to a brokerage account). After such
    issuance, recordation and delivery, the Participant will have
    all the rights of a stockholder of the Company with respect to
    voting such Shares and receipt of dividends and distributions on
    such Shares.

 

    7. Initial Grants.

 

    (a) Initial Option Grant.  Each
    Outside Director will be automatically granted an Option to
    purchase such number of Shares set forth in this
    Section 7(a) (the “Initial Option”) on the date
    on which such person first becomes an Outside Director, whether
    through election by the stockholders of the Company or
    appointment by the Board to fill a vacancy; provided, however,
    that an Inside Director who ceases to be an Inside Director but
    who remains a Director will not receive an Initial Option. The
    Initial Option shall give the Participant the right to purchase
    a number of Shares equal to: (x) $200,000 divided by
    (y) the Black-Scholes value of an Option to purchase a
    single

    

6

 

    Share on the grant date, as determined by the Board; provided
    that such number of Shares subject to the Initial Option will be
    rounded to the nearest whole number of Shares. The terms of an
    Initial Option granted hereunder will be as follows:

 

    (i) The term of the Initial Option will be seven
    (7) years.

 

    (ii) The Initial Option will be exercisable only while the
    Outside Director remains a Director of the Company, except as
    set forth in Sections 5 and 13.

 

    (iii) The exercise price per Share will be one hundred
    percent (100%) of the Fair Market Value per Share on the date of
    grant of the Initial Option.

 

    (iv) Subject to Section 13, the Initial Option will
    become exercisable as to one-twelfth (1/12) of the Shares
    subject to the Initial Option each quarter following its date of
    grant (rounded to the nearest whole number of Shares), so as to
    become one hundred percent (100%) vested on the third (3rd)
    anniversary of the date of grant, provided that the Participant
    continues to serve as a Director on such vesting dates.

 

    (b) Initial Stock Unit Grant.

 

    (i) Grant.  Each Outside Director
    will be automatically granted such number of Shares subject to
    Stock Units as set forth in this Section 7(b)(i)
    (“Initial Stock Unit Grant”) on the date on which such
    person first becomes an Outside Director, whether through
    election by the stockholders of the Company or appointment by
    the Board to fill a vacancy; provided, however, that an Inside
    Director who ceases to be an Inside Director but who remains a
    Director will not receive a Initial Option. The Initial Stock
    Unit Grant shall cover a number of Shares with an aggregate Fair
    Market Value equal to $200,000 on the grant date; provided that
    such number of Shares subject to the Initial Stock Unit Grant
    will be rounded to the nearest whole number of Shares.

 

    (ii) Vesting.  Subject to
    Section 13, the Initial Stock Unit Grant will vest
    (x) as to one-third (1/3) of the Shares subject to the
    Initial Stock Unit Grant upon the earlier of (aa) the first
    anniversary of the date of grant, or (bb) the date of the next
    Annual Meeting at which a general election of Directors is held;
    and (y) as to one-twelfth (1/12) of the Shares subject to
    the Initial Stock Unit Grant each quarter thereafter (all
    vesting rounded to the nearest whole number of Shares), provided
    that the Participant continues to serve as a Director on such
    vesting dates.

 

    8. Annual Awards.

 

    (a) Annual Option Grant.  Subject
    to proration under Section 9 below, each Outside Director
    will be automatically granted an Option to purchase such number
    of Shares as set forth in this Section 8(a) (“Annual
    Option”) annually on the date of the Annual Meeting,
    provided that such Outside Director had served as an Outside
    Director prior to such Annual Meeting and that he or she
    continues to be an Outside Director at and immediately following
    such Annual Meeting. The Annual Option shall give the
    Participant the right to purchase a number of Shares equal to:
    (x) $100,000 divided by (y) the Black-Scholes
    value of an Option to purchase a single Share on the grant date,
    as determined by the Board; provided that such number of Shares
    subject to the Initial Option will be rounded to the nearest
    whole number of Shares. The terms of an Annual Option granted
    hereunder will be as follows:

 

    (i) The term of the Annual Option will be seven
    (7) years.

 

    (ii) The Annual Option will be exercisable only while the
    Outside Director remains a Director of the Company, except as
    set forth in Sections 5 and 13.

 

    (iii) The exercise price per Share will be one hundred
    percent (100%) of the Fair Market Value per Share on the date of
    grant of the Annual Option.

 

    (iv) Subject to Section 13, the Annual Option will
    become exercisable as to one hundred percent (100%) of the
    Shares subject to the Annual Option on the earlier of:
    (x) the one (1) year anniversary of the date of grant,
    or (y) the next Annual Meeting, provided that the
    Participant continues to serve as a Director on such date.

    

7

 

    (b) Annual Stock Unit Grant.

 

    (i) Grant.  Subject to proration
    under Section 9, each Outside Director will be
    automatically granted such number of Shares subject to Stock
    Units as set forth in this Section 8(b) (the “Annual
    Stock Unit Grant”) annually on the date of the Annual
    Meeting, provided that such Outside Director had served as an
    Outside Director prior to such Annual Meeting and that he or she
    continues to be an Outside Director at and immediately following
    such Annual Meeting. The Annual Stock Unit Grant shall cover a
    number of Shares with an aggregate Fair Market Value equal to
    $100,000 on the grant date; provided that such number of Shares
    subject to the Annual Stock Unit Grant will be rounded to the
    nearest whole number of Shares.

 

    (ii) Vesting.  Subject to
    Section 13, the Annual Stock Unit Grant will vest and
    become payable as to 100% of the Shares subject to the Annual
    Stock Unit Grant on the earlier of: (x) the one
    (1) year anniversary of the date of grant, or (y) the
    next Annual Meeting, provided that the Participant continues to
    serve as a Director on such date.

 

    9. Annual Award Pro Ration Policy for New Directors
    Appointed Before an Annual Meeting.  To the
    extent that an Outside Director has not served as an Outside
    Director at the prior Annual Meeting, such Outside Director
    shall receive pro-rata annual grants consisting of a certain
    percentage (the “Proration Percentage”) of an Annual
    Option and an Annual Stock Unit Grant, provided that he or she
    continues to be an Outside Director at and immediately following
    the applicable Annual Meeting. The Proration Percentage shall
    consist of: (x) the number of days between the anniversary
    of the Outside Director’s initial election to the Board or
    initial appointment to the Board and the anticipated date of the
    immediately following Annual Meeting; divided by
    (y) three hundred sixty-five (365). All grants under
    this subsection will be rounded to the nearest whole number of
    Shares.

 

    10. Eligibility.  Awards may be
    granted only to Outside Directors. All Options will be
    automatically granted in accordance with the terms set forth in
    Section 5. All Stock Units will be automatically granted in
    accordance with the terms set forth in Section 6.

 

    The Plan will not confer upon any Participant any right with
    respect to continuation of service as a Director or nomination
    to serve as a Director, nor will it interfere in any way with
    any rights which the Director or the Company may have to
    terminate the Director’s relationship with the Company at
    any time.

 

    11. Term of Plan.  This Plan is
    effective as of its approval by the stockholders of the Company
    at the Company’s 2010 Annual Meeting as described in
    Section 19 of the Plan. It will continue in effect until
    the tenth anniversary of the Plan’s initial effectiveness
    unless sooner terminated under Section 13 of the Plan.

 

    12. Transferability

 

    (a) Non-Transferability of
    Awards.  Except as described in the Award
    Agreements, Awards may not be sold, pledged, assigned,
    hypothecated, transferred, or disposed of in any manner other
    than by will or by the laws of descent or distribution and may
    be exercised, during the lifetime of the Participant, only by
    the Participant. Upon any attempt to sell, pledge, assign,
    hypothecate, transfer or otherwise dispose of an Award, the
    Award immediately will become null and void.

 

    (b) Prohibition Against an Award Transfer
    Program.  Notwithstanding anything to the
    contrary in the Plan, in no event will the Board have the right
    to determine and implement the terms and conditions of any Award
    Transfer Program without stockholder approval.

 

    13. Adjustments Upon Changes in Capitalization,
    Dissolution, Merger or Asset Sale.

 

    (a) Changes in Capitalization.  In
    the event that any dividend or other distribution (whether in
    the form of cash, Shares, other securities, or other property),
    recapitalization, stock split, reverse stock split,
    reorganization, merger, consolidation,
    split-up,
    spin-off, combination, repurchase, or exchange of Shares or
    other securities of the Company, or other change in the
    corporate structure of the Company affecting the Shares occurs,
    the Board, in order to prevent diminution or enlargement of the
    benefits or potential benefits intended to be made available
    under the Plan, will adjust the number of Shares subject to
    Options and Stock Units available for issuance under the Plan,
    the number of Shares covered by each Option, the exercise price
    under each outstanding Option, or the number of Stock Units
    included in any prior award which has not yet been settled.

    

8

 

    (b) Dissolution or Liquidation.  In
    the event of the proposed dissolution or liquidation of the
    Company, to the extent that an Option has not been previously
    exercised or a Stock Unit has not vested, it will terminate
    immediately prior to the consummation of such proposed action.

 

    (c) Change in Control.

 

    (i) In the event of a Change in Control, (x) any
    unexercisable or unvested portion of the outstanding Options
    shall be immediately exercisable and vested in full as of prior
    to or upon the consummation of the Change in Control, and the
    Board will notify the Participant holding an Option in writing
    or electronically that the Option will be exercisable for a
    period of time determined by the Board in its sole discretion;
    and (y) any unvested Stock Units shall fully vest upon the
    consummation of the Change in Control. The exercise or vesting
    of any Option that was permissible solely by reason of this
    Section 13(c)(i) shall be conditioned upon the consummation
    of the Change in Control.

 

    (ii) In addition, the Board, in its sole discretion, may
    arrange with the surviving, continuing, successor, or purchasing
    corporation or parent corporation thereof, as the case may be
    (the “Acquiring Corporation”), for the Acquiring
    Corporation to either assume the Company’s rights and
    obligations under outstanding Options
    and/or Stock
    Units or substitute substantially equivalent options
    and/or stock
    units for the Acquiring Corporation’s stock for such
    outstanding Options
    and/or Stock
    Units. Any Options
    and/or Stock
    Units which are neither assumed or substituted for by the
    Acquiring Corporation in connection with the Change in Control
    nor exercised as of the date of the Change in Control shall
    terminate and cease to be outstanding effective as of the date
    of the Change in Control. Notwithstanding the foregoing, Shares
    acquired upon exercise of an Option or upon settlement of a
    Stock Unit prior to the Change in Control and any consideration
    received pursuant to the Change in Control with respect to such
    Shares shall continue to be subject to all applicable provisions
    of the Award Agreement evidencing such Option
    and/or Stock
    Unit except as otherwise provided in such Award Agreement.

 

    (iii) For the purposes of this Section 13(c), an Award
    will be considered assumed if, following the Change in Control,
    the Award confers the right to purchase or receive, for each
    Share subject to the Award immediately prior to the Change in
    Control, the consideration (whether stock, cash, or other
    securities or property) received in the Change in Control by
    holders of Common Stock for each Share held on the effective
    date of the transaction (and if holders were offered a choice of
    consideration, the type of consideration chosen by the holders
    of a majority of the outstanding Shares). If such consideration
    received in the Change in Control is not solely common stock of
    the Acquiring Corporation or its Parent, the Board may, with the
    consent of the Acquiring Corporation, provide for the
    consideration to be received upon the exercise of the Option, or
    upon the payout of a Stock Unit, for each Share subject to the
    Award, to be solely common stock of the Acquiring Corporation or
    its Parent equal in fair market value to the per Share
    consideration received by holders of Common Stock in the Change
    in Control.

 

    14. Amendment and Termination of the Plan.

 

    (a) Amendment and Termination.  The
    Board may at any time amend, alter, suspend, or discontinue the
    Plan, but no amendment, alteration, suspension, or
    discontinuation will be made which would impair the rights of
    any Participant under any grant theretofore made, without his or
    her consent. In addition, to the extent necessary and desirable
    to comply with Applicable Laws, the Company will obtain
    stockholder approval of any Plan amendment in such a manner and
    to such a degree as required.

 

    (b) Effect of Amendment or
    Termination.  Any such amendment or
    termination of the Plan will not affect Awards already granted
    and such Awards will remain in full force and effect as if this
    Plan had not been amended or terminated.

 

    15. Time of Granting of
    Awards.  The date of grant of an Award will,
    for all purposes, be the date determined in accordance with
    Section 5 and 6.

 

    16. Conditions Upon Issuance of Shares.

 

    (a) Shares will not be issued under any Award unless the
    issuance and delivery of such Shares pursuant thereto, and in
    the case of an Option, the exercise of such Option, will comply
    with all relevant provisions of law, including, without
    limitation, the Securities Act, the Exchange Act, the rules and
    regulations promulgated

    

9

 

    thereunder, state securities laws, and the requirements of any
    stock exchange upon which the Shares may then be listed, and
    will be further subject to the approval of counsel for the
    Company with respect to such compliance.

 

    (b) As a condition to the exercise of an Award, the Company
    may require the person exercising such Award 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 relevant provisions of law.

 

    (c) Inability of the Company to obtain authority from any
    regulatory body having jurisdiction, which authority is deemed
    by the Company’s counsel to be necessary to the lawful
    issuance and sale of any Shares hereunder, will relieve the
    Company of any liability in respect of the failure to issue or
    sell such Shares as to which such requisite authority will not
    have been obtained.

 

    17. Reservation of Shares.  The
    Company, during the term of this Plan, will at all times reserve
    and keep available such number of Shares as will be sufficient
    to satisfy the requirements of the Plan.

 

    18. Award Agreement.  Awards will
    be evidenced by written Award Agreements in such form as the
    Board will approve.

 

    19. Stockholder Approval.  The Plan
    will be subject to approval by the stockholders of the Company
    at the Company’s 2010 Annual Meeting. Such stockholder
    approval will be obtained in the degree and manner required
    under Applicable Laws.

 

    20. No Guarantee of Continued
    Service.  The Plan will not confer upon any
    Participant any rights with respect to continuation of service
    as a Director or other service provider to the Company or
    nomination to serve as a Director, nor will it interfere in any
    way with any rights which the Director of the Company may have
    to terminate the Director’s relationship with the Company
    at any time.

 

    21. Compliance With Code
    Section 409A.  Awards will be designed
    and operated in such a manner that they are either exempt from
    the application of, or comply with, the requirements of Code
    Section 409A such that the grant, payment, settlement or
    deferral will not be subject to the additional tax or interest
    applicable under Code Section 409A, except as otherwise
    determined in the sole discretion of the Board. The Plan and
    each Award Agreement under the Plan is intended to meet the
    requirements of Code Section 409A and will be construed and
    interpreted in accordance with such intent, except as otherwise
    determined in the sole discretion of the Administrator. To the
    extent that an Award or payment, or the settlement or deferral
    thereof, is subject to Code Section 409A the Award will be
    granted, paid, settled or deferred in a manner that will meet
    the requirements of Code Section 409A, such that the grant,
    payment, settlement or deferral will not be subject to the
    additional tax or interest applicable under Code
    Section 409A.

    

10

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