Document:

Data Domain Inc 2007 Equity Incentive Plan

 Exhibit 10.2 
 DATA DOMAIN, INC. 
 2007 EQUITY INCENTIVE PLAN 
 (AS ADOPTED EFFECTIVE UPON THE IPO) 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
			
	ARTICLE 1.	  	 INTRODUCTION
	  	1
			
	ARTICLE 2.	  	 ADMINISTRATION
	  	1
	2.1	  	 Committee Composition
	  	1
	2.2	  	 Committee Responsibilities
	  	1
	2.3	  	 Committee for Non-Officer Grants
	  	2
			
	ARTICLE 3.	  	 SHARES AVAILABLE FOR GRANTS
	  	2
	3.1	  	 Basic Limitation
	  	2
	3.2	  	 Annual Increase in Shares
	  	2
	3.3	  	 Shares Returned to Reserve
	  	2
	3.4	  	 Dividend Equivalents
	  	3
			
	ARTICLE 4.	  	 ELIGIBILITY
	  	3
	4.1	  	 Incentive Stock Options
	  	3
	4.2	  	 Other Grants
	  	3
			
	ARTICLE 5.	  	 OPTIONS
	  	3
	5.1	  	 Stock Option Agreement
	  	3
	5.2	  	 Number of Shares
	  	3
	5.3	  	 Exercise Price
	  	3
	5.4	  	 Exercisability and Term
	  	3
	5.5	  	 Modification or Assumption of Options
	  	4
	5.6	  	 Buyout Provisions
	  	4
			
	ARTICLE 6.	  	 PAYMENT FOR OPTION SHARES
	  	4
	6.1	  	 General Rule
	  	4
	6.2	  	 Surrender of Stock
	  	4
	6.3	  	 Exercise/Sale
	  	4
	6.4	  	 Promissory Note
	  	4
	6.5	  	 Other Forms of Payment
	  	4
			
	ARTICLE 7.	  	 STOCK APPRECIATION RIGHTS
	  	5
	7.1	  	 SAR Agreement
	  	5
	7.2	  	 Number of Shares
	  	5
	7.3	  	 Exercise Price
	  	5
	7.4	  	 Exercisability and Term
	  	5
	7.5	  	 Exercise of SARs
	  	5
	7.6	  	 Modification or Assumption of SARs
	  	5
			
	ARTICLE 8.	  	 RESTRICTED SHARES
	  	6
	8.1	  	 Restricted Stock Agreement
	  	6
	8.2	  	 Payment for Awards
	  	6
	8.3	  	 Vesting Conditions
	  	6

  

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	8.4	  	 Voting and Dividend Rights
	  	6
			
	ARTICLE 9.	  	 STOCK UNITS
	  	6
	9.1	  	 Stock Unit Agreement
	  	6
	9.2	  	 Payment for Awards
	  	7
	9.3	  	 Vesting Conditions
	  	7
	9.4	  	 Voting and Dividend Rights
	  	7
	9.5	  	 Form and Time of Settlement of Stock Units
	  	7
	9.6	  	 Death of Recipient
	  	7
	9.7	  	 Creditors’ Rights
	  	8
			
	ARTICLE 10.	  	 PROTECTION AGAINST DILUTION
	  	8
	10.1	  	 Adjustments
	  	8
	10.2	  	 Dissolution or Liquidation
	  	8
	10.3	  	 Reorganizations
	  	9
	10.4	  	 Acceleration
	  	10
			
	ARTICLE 11.	  	 AWARDS UNDER OTHER PLANS
	  	10
			
	ARTICLE 12.	  	 PAYMENT OF DIRECTOR’S FEES IN SECURITIES
	  	10
	12.1	  	 Effective Date
	  	10
	12.2	  	 Elections to Receive NSOs, Restricted Shares or Stock Units
	  	10
	12.3	  	 Number and Terms of NSOs, Restricted Shares or Stock Units
	  	10
			
	ARTICLE 13.	  	 LIMITATION ON RIGHTS
	  	11
	13.1	  	 Retention Rights
	  	11
	13.2	  	 Stockholders’ Rights
	  	11
	13.3	  	 Regulatory Requirements
	  	11
			
	ARTICLE 14.	  	 WITHHOLDING TAXES
	  	11
	14.1	  	 General
	  	11
	14.2	  	 Share Withholding
	  	11
			
	ARTICLE 15.	  	 FUTURE OF THE PLAN
	  	11
	15.1	  	 Term of the Plan
	  	11
	15.2	  	 Amendment or Termination
	  	12
	15.3	  	 Stockholder Approval
	  	12
			
	ARTICLE 16.	  	 DEFINITIONS
	  	12

  

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 DATA DOMAIN, INC. 
 2007 EQUITY INCENTIVE PLAN 
 ARTICLE 1.
INTRODUCTION. 
 The Plan was adopted by the Board to be effective at the IPO. The purpose of the Plan is to promote the
long-term success of the Company and the creation of stockholder value by (a) encouraging Employees, Outside Directors and Consultants to focus on critical long-range objectives, (b) encouraging the attraction and retention of Employees,
Outside Directors and Consultants with exceptional qualifications and (c) linking Employees, Outside Directors and Consultants directly to stockholder interests through increased stock ownership. The Plan seeks to achieve this purpose by
providing for Awards in the form of Restricted Shares, Stock Units, Options (which may constitute ISOs or NSOs) or stock appreciation rights. 
 The Plan shall be governed by, and construed in accordance with, the laws of the State of Delaware (except their choice-of-law provisions). 
 ARTICLE 2. ADMINISTRATION. 
 2.1 Committee Composition. The Committee shall administer the Plan. The Committee shall consist exclusively of two or more directors of the Company, who shall be appointed by the Board. In
addition, each member of the Committee shall meet the following requirements: 
 (a) Any listing standards
prescribed by the principal securities market on which the Company’s equity securities are traded; 
 (b)
Such requirements as the Internal Revenue Service may establish for outside directors acting under plans intended to qualify for exemption under section 162(m)(4)(C) of the Code; 
 (c) Such requirements as the Securities and Exchange Commission may establish for administrators acting under plans intended
to qualify for exemption under Rule 16b-3 (or its successor) under the Exchange Act; and 
 (d) Any other
requirements imposed by applicable law, regulations or rules. 
 2.2 Committee Responsibilities. The Committee shall
(a) select the Employees, Outside Directors and Consultants who are to receive Awards under the Plan, (b) determine the type, number, vesting requirements and other features and conditions of such Awards, (c) interpret the Plan,
(d) make all other decisions relating to the operation of the Plan and (e) carry out any other duties delegated to it by the Board. The Committee may adopt such

 
rules or guidelines as it deems appropriate to implement the Plan. The Committee’s determinations under the Plan shall be final and binding on all persons. 
 2.3 Committee for Non-Officer Grants. The Board may also appoint a secondary committee of the Board, which shall be composed of the
entire Board or of one or more directors of the Company who need not satisfy the requirements of Section 2.1. Such secondary committee may administer the Plan with respect to Employees and Consultants who are not Outside Directors and are not
considered executive officers of the Company under section 16 of the Exchange Act, may grant Awards under the Plan to such Employees and Consultants and may determine all features and conditions of such Awards. Within the limitations of this
Section 2.3, any reference in the Plan to the Committee shall include such secondary committee. 
 ARTICLE 3. SHARES
AVAILABLE FOR GRANTS. 
 3.1 Basic Limitation. Common Shares issued pursuant to the Plan may be authorized but
unissued shares or treasury shares. The aggregate number of Common Shares issued under the Plan shall not exceed (a) 6,000,000 plus the number of Common Shares remaining available for issuance under the 2002 Stock Plan on the date of the IPO
plus (b) the additional Common Shares described in Sections 3.2 and 3.3. The number of Common Shares that are subject to Awards outstanding at any time under the Plan shall not exceed the number of Common Shares that then remain available for
issuance under the Plan. All Common Shares available under the Plan may be issued upon the exercise of ISOs. No more than 5,000,000 Common Shares may be issued under the Plan as Restricted Shares. The limitations of this Section 3.1 and
Section 3.2 shall be subject to adjustment pursuant to Article 10. 
 3.2 Annual Increase in Shares. As of the first
day of each fiscal year of the Company, commencing on January 1, 2008 and ending on January 1, 2012, the aggregate number of Common Shares that may be issued under the Plan shall automatically increase by a number equal to the lowest of
(a) 5% of the total number of Common Shares then outstanding, (b) 5,000,000 Common Shares or (c) the number determined by the Board. 
 3.3 Shares Returned to Reserve. If Options, SARs or Stock Units under this Plan or the 2002 Stock Plan are forfeited or terminate for any other reason before being exercised or settled, then the
Common Shares subject to such Options, SARs or Stock Units shall again become available for issuance under this Plan. If Restricted Shares or Common Shares issued upon the exercise of Options under this Plan or the 2002 Stock Plan are reacquired by
the Company pursuant to a forfeiture provision or for any other reason, then such Common Shares shall again become available for issuance under this Plan. If SARs are exercised, then only the number of Common Shares (if any) actually issued in
settlement of such SARs shall reduce the number available under Section 3.1 and the balance shall again become available for issuance under the Plan. If Stock Units are settled, then only the number of Common Shares (if any) actually issued in
settlement of such Stock Units shall reduce the number available under Section 3.1 and the balance shall again become available for issuance under the Plan. 
  

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 3.4 Dividend Equivalents. Any dividend equivalents paid or credited under the Plan
shall not be applied against the number of Common Shares that may be issued under the Plan, whether or not such dividend equivalents are converted into Stock Units. 
 ARTICLE 4. ELIGIBILITY. 
 4.1 Incentive Stock Options. Only Employees
who are common-law employees of the Company, a Parent or a Subsidiary shall be eligible for the grant of ISOs. In addition, an Employee who owns more than 10% of the total combined voting power of all classes of outstanding stock of the Company or
any of its Parents or Subsidiaries shall not be eligible for the grant of an ISO unless the requirements set forth in section 422(c)(5) of the Code are satisfied. 
 4.2 Other Grants. Only Employees, Outside Directors and Consultants shall be eligible for the grant of Restricted Shares, Stock Units, NSOs or SARs. The Committee may provide that instead of
granting an Award to an Outside Director, such Award may instead be granted to an affiliate of such Outside Director. Such affiliate shall then be deemed to be an Outside Director for purposes of the Plan, provided that any Service-related vesting
and termination provisions pertaining to an Award shall be applied with regard to the Service of the Outside Director. 
 ARTICLE 5. OPTIONS. 
 5.1 Stock Option Agreement. Each grant of an Option under the Plan shall be
evidenced by a Stock Option Agreement between the Optionee and the Company. Such Option shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The Stock Option Agreement
shall specify whether the Option is an ISO or an NSO. The provisions of the various Stock Option Agreements entered into under the Plan need not be identical. Options may be granted in consideration of a reduction in the Optionee’s other
compensation. A Stock Option Agreement may provide that a new Option will be granted automatically to the Optionee when he or she exercises a prior Option and pays the Exercise Price in the form described in Section 6.2. 
 5.2 Number of Shares. Each Stock Option Agreement shall specify the number of Common Shares subject to the Option and shall provide
for the adjustment of such number in accordance with Article 10. Options granted to any Optionee in a single calendar year shall not cover more than 1,000,000 Common Shares, except that Options granted to a new Employee in the calendar year in which
his or her Service as an Employee first commences shall not cover more than 2,500,000 Common Shares. The limitation set forth in the preceding sentence shall be subject to adjustment in accordance with Article 10. 
 5.3 Exercise Price. Each Stock Option Agreement shall specify the Exercise Price; provided that the Exercise Price shall in no event
be less than 100% of the Fair Market Value of a Common Share on the date of grant. 
 5.4 Exercisability and Term. Each
Stock Option Agreement shall specify the date or event when all or any installment of the Option is to become exercisable. The Stock Option Agreement shall also specify the term of the Option; provided that the term of an ISO

  

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shall in no event exceed 10 years from the date of grant. A Stock Option Agreement may provide for accelerated exercisability in the event of the Optionee’s death, disability or retirement
or other events and may provide for expiration prior to the end of its term in the event of the termination of the Optionee’s Service. Options may be awarded in combination with SARs, and such an Award may provide that the Options will not be
exercisable unless the related SARs are forfeited. 
 5.5 Modification or Assumption of Options. Within the limitations
of the Plan, the Committee may modify, reprice, extend or assume outstanding options or may accept the cancellation of outstanding options (whether granted by the Company or by another issuer) in return for the grant of new options for the same or a
different number of shares and at the same or a different exercise price. The foregoing notwithstanding, no modification of an Option shall, without the consent of the Optionee, alter or impair his or her rights or obligations under such Option.

 5.6 Buyout Provisions. The Committee may at any time (a) offer to buy out for a payment in cash or cash
equivalents an Option previously granted or (b) authorize an Optionee to elect to cash out an Option previously granted, in either case at such time and based upon such terms and conditions as the Committee shall establish. 
 ARTICLE 6. PAYMENT FOR OPTION SHARES. 
 6.1 General Rule. The entire Exercise Price of Common Shares issued upon exercise of Options shall be payable in cash or cash equivalents at the time when such Common Shares are purchased, except
that the Committee at its sole discretion may accept payment of the Exercise Price in any other form(s) described in this Article 6. However, if the Optionee is an Outside Director or executive officer of the Company, he or she may pay the Exercise
Price in a form other than cash or cash equivalents only to the extent permitted by section 13(k) of the Exchange Act. 
 6.2
Surrender of Stock. With the Committee’s consent, all or any part of the Exercise Price may be paid by surrendering, or attesting to the ownership of, Common Shares that are already owned by the Optionee. Such Common Shares shall be valued
at their Fair Market Value on the date when the new Common Shares are purchased under the Plan. 
 6.3 Exercise/Sale.
With the Committee’s consent, all or any part of the Exercise Price and any withholding taxes may be paid by delivering (on a form prescribed by the Company) an irrevocable direction to a securities broker approved by the Company to sell all or
part of the Common Shares being purchased under the Plan and to deliver all or part of the sales proceeds to the Company. 
 6.4 Promissory Note. With the Committee’s consent, all or any part of the Exercise Price and any withholding taxes may be paid by delivering (on a form prescribed by the Company) a full-recourse promissory note. 
 6.5 Other Forms of Payment. With the Committee’s consent, all or any part of the Exercise Price and any withholding taxes may be
paid in any other form that is consistent with applicable laws, regulations and rules. 
  

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 ARTICLE 7. STOCK APPRECIATION RIGHTS. 
 7.1 SAR Agreement. Each grant of an SAR under the Plan shall be evidenced by an SAR Agreement between the Optionee and the Company.
Such SAR shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various SAR Agreements entered into under the Plan need not be identical. SARs may be
granted in consideration of a reduction in the Optionee’s other compensation. 
 7.2 Number of Shares. Each SAR
Agreement shall specify the number of Common Shares to which the SAR pertains and shall provide for the adjustment of such number in accordance with Article 10. SARs granted to any Optionee in a single calendar year shall in no event pertain to more
than 1,000,000 Common Shares, except that SARs granted to a new Employee in the calendar year in which his or her Service as an Employee first commences shall not pertain to more than 2,500,000 Common Shares. The limitation set forth in the
preceding sentence shall be subject to adjustment in accordance with Article 10. 
 7.3 Exercise Price. Each SAR
Agreement shall specify the Exercise Price; provided that the Exercise Price shall in no event be less than 100% of the Fair Market Value of a Common Share on the date of grant. 
 7.4 Exercisability and Term. Each SAR Agreement shall specify the date when all or any installment of the SAR is to become
exercisable. The SAR Agreement shall also specify the term of the SAR. An SAR Agreement may provide for accelerated exercisability in the event of the Optionee’s death, disability or retirement or other events and may provide for expiration
prior to the end of its term in the event of the termination of the Optionee’s Service. SARs may be awarded in combination with Options, and such an Award may provide that the SARs will not be exercisable unless the related Options are
forfeited. An SAR may be included in an ISO only at the time of grant but may be included in an NSO at the time of grant or thereafter. An SAR granted under the Plan may provide that it will be exercisable only in the event of a Change in Control.

 7.5 Exercise of SARs. Upon exercise of an SAR, the Optionee (or any person having the right to exercise the SAR after
his or her death) shall receive from the Company consideration in the form of (a) Common Shares, (b) cash or (c) a combination of Common Shares and cash, as the Committee shall determine. Each SAR Agreement shall specify the amount
and/or Fair Market Value of the consideration that the Optionee will receive upon exercising the SAR; provided that the aggregate consideration shall not exceed the amount by which the Fair Market Value (on the date of exercise) of the Common Shares
subject to the SAR exceeds the Exercise Price of the SAR. If, on the date when an SAR expires, the Exercise Price of the SAR is less than the Fair Market Value of the Common Shares subject to the SAR on such date but any portion of the SAR has not
been exercised, then the SAR shall automatically be deemed to be exercised as of such date with respect to such portion. An SAR Agreement may also provide for an automatic exercise of the SAR on an earlier date. 
 7.6 Modification or Assumption of SARs. Within the limitations of the Plan, the Committee may modify, reprice, extend or assume
outstanding SARs or may accept the cancellation of outstanding SARs (whether granted by the Company or by another issuer) in

  

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return for the grant of new SARs for the same or a different number of shares and at the same or a different exercise price. The foregoing notwithstanding, no modification of an SAR shall,
without the consent of the Optionee, alter or impair his or her rights or obligations under such SAR. 
 ARTICLE 8.
RESTRICTED SHARES. 
 8.1 Restricted Stock Agreement. Each grant of Restricted Shares under the Plan shall be
evidenced by a Restricted Stock Agreement between the recipient and the Company. Such Restricted Shares shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The
provisions of the various Restricted Stock Agreements entered into under the Plan need not be identical. 
 8.2 Payment for
Awards. Restricted Shares may be sold or awarded under the Plan for such consideration as the Committee may determine, including (without limitation) cash, cash equivalents, property, full-recourse promissory notes, past services and future
services. If the Participant is an Outside Director or executive officer of the Company, he or she may pay for Restricted Shares with a promissory note only to the extent permitted by section 13(k) of the Exchange Act. Within the limitations of the
Plan, the Committee may accept the cancellation of outstanding options in return for the grant of Restricted Shares. 
 8.3 Vesting Conditions. Each Award of Restricted Shares may or may not be subject to vesting. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the
Restricted Stock Agreement. The Committee may include among such conditions the requirement that the performance of the Company or a business unit of the Company for a specified period of one or more fiscal years equal or exceed a target determined
in advance by the Committee. The Committee shall determine such performance. Such target shall be based on one or more of the criteria set forth in Appendix A. The Committee shall identify such target not later than the 90th day of such period. In no event shall more than 500,000 Restricted
Shares that are subject to performance-based vesting conditions be granted to any Participant in a single fiscal year of the Company, subject to adjustment in accordance with Article 10. A Restricted Stock Agreement may provide for accelerated
vesting in the event of the Participant’s death, disability or retirement or other events. 
 8.4 Voting and Dividend
Rights. The holders of Restricted Shares awarded under the Plan shall have the same voting, dividend and other rights as the Company’s other stockholders. A Restricted Stock Agreement, however, may require that the holders of Restricted
Shares invest any cash dividends received in additional Restricted Shares. Such additional Restricted Shares shall be subject to the same conditions and restrictions as the Award with respect to which the dividends were paid. 
 ARTICLE 9. STOCK UNITS. 
 9.1 Stock Unit Agreement. Each grant of Stock Units under the Plan shall be evidenced by a Stock Unit Agreement between the recipient and the Company. Such Stock Units shall be subject to all
applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Stock Unit Agreements

  

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entered into under the Plan need not be identical. Stock Units may be granted in consideration of a reduction in the recipient’s other compensation. 
 9.2 Payment for Awards. To the extent that an Award is granted in the form of Stock Units, no cash consideration shall be required of
the Award recipients. 
 9.3 Vesting Conditions. Each Award of Stock Units may or may not be subject
to vesting. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Stock Unit Agreement. The Committee may include among such conditions the requirement that the performance of the Company or a business
unit of the Company for a specified period of one or more fiscal years equal or exceed a target determined in advance by the Committee. The Committee shall determine such performance. Such target shall be based on one or more of the criteria set
forth in Appendix A. The Committee shall identify such target not later than the 90th day of such period. In no event shall more than 250,000 Stock Units that are subject to performance-based vesting conditions be granted to any Participant in a single fiscal year of the Company, subject
to adjustment in accordance with Article 10. A Stock Unit Agreement may provide for accelerated vesting in the event of the Participant’s death, disability or retirement or other events. 
 9.4 Voting and Dividend Rights. The holders of Stock Units shall have no voting rights. Prior to settlement or forfeiture, any Stock
Unit awarded under the Plan may, at the Committee’s discretion, carry with it a right to dividend equivalents. Such right entitles the holder to be credited with an amount equal to all cash dividends paid on one Common Share while the Stock
Unit is outstanding. Dividend equivalents may be converted into additional Stock Units. Settlement of dividend equivalents may be made in the form of cash, in the form of Common Shares, or in a combination of both. Prior to distribution, any
dividend equivalents that are not paid shall be subject to the same conditions and restrictions as the Stock Units to which they attach. 
 9.5 Form and Time of Settlement of Stock Units. Settlement of vested Stock Units may be made in the form of (a) cash, (b) Common Shares or (c) any combination of both, as determined
by the Committee. The actual number of Stock Units eligible for settlement may be larger or smaller than the number included in the original Award, based on predetermined performance factors. Methods of converting Stock Units into cash may include
(without limitation) a method based on the average Fair Market Value of Common Shares over a series of trading days. Vested Stock Units may be settled in a lump sum or in installments. The distribution may occur or commence when all vesting
conditions applicable to the Stock Units have been satisfied or have lapsed, or it may be deferred to any later date. The amount of a deferred distribution may be increased by an interest factor or by dividend equivalents. Until an Award of Stock
Units is settled, the number of such Stock Units shall be subject to adjustment pursuant to Article 10. 
 9.6 Death of
Recipient. Any Stock Units Award that becomes payable after the recipient’s death shall be distributed to the recipient’s beneficiary or beneficiaries. Each recipient of a Stock Units Award under the Plan shall designate one or more
beneficiaries for this purpose by filing the prescribed form with the Company. A beneficiary designation may be changed by filing the prescribed form with the Company at any time before the Award recipient’s death. If no beneficiary was
designated or if no designated beneficiary survives the

  

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Award recipient, then any Stock Units Award that becomes payable after the recipient’s death shall be distributed to the recipient’s estate. 
 9.7 Creditors’ Rights. A holder of Stock Units shall have no rights other than those of a general creditor of the Company. Stock
Units represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Stock Unit Agreement. 
 ARTICLE 10. PROTECTION AGAINST DILUTION. 
 10.1 Adjustments. In the
event of a subdivision of the outstanding Common Shares, a declaration of a dividend payable in Common Shares or a combination or consolidation of the outstanding Common Shares (by reclassification or otherwise) into a lesser number of Common
Shares, corresponding adjustments shall automatically be made in each of the following: 
 (a) The number of
Options, SARs, Restricted Shares and Stock Units available for future Awards under Article 3, including the 5,000,000-share limitation set forth in Section 3.1 and the 5,000,000-share limitation set forth in Section 3.2; 
 (b) The limitations set forth in Sections 5.2, 7.2, 8.3 and 9.3; 
 (c) The number of Common Shares covered by each outstanding Option and SAR; 
 (d) The Exercise Price under each outstanding Option and SAR; or 
 (e) The number of Stock Units included in any prior Award that has not yet been settled. 
 In the event of a declaration of an extraordinary dividend payable in a form other than Common Shares in an amount that has a material effect on the price
of Common Shares, a recapitalization, a spin-off or a similar occurrence, the Committee shall make such adjustments as it, in its sole discretion, deems appropriate in one or more of the foregoing. Except as provided in this Article 10, a
Participant shall have no rights by reason of any issuance by the Company of stock of any class or securities convertible into stock of any class, any subdivision or consolidation of shares of stock of any class, the payment of any stock dividend or
any other increase or decrease in the number of shares of stock of any class. 
 10.2 Dissolution or Liquidation. To the
extent not previously exercised or settled, Options, SARs and Stock Units shall terminate immediately prior to the dissolution or liquidation of the Company. 
  

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 10.3 Reorganizations. In the event that the Company is a party to a merger or
consolidation, all outstanding Awards shall be subject to the agreement of merger or consolidation approved by the Board of Directors, provided that such agreement shall provide for one or more of the following: 
 (a) The continuation of such outstanding Awards by the Company (if the Company is the surviving corporation). 
 (b) The assumption of such outstanding Awards by the surviving corporation or its parent, provided that the assumption of
Options or SARs shall comply with section 424(a) of the Code (whether or not the Options are ISOs). 
 (c) The
substitution by the surviving corporation or its parent of new awards for such outstanding Awards, provided that the substitution of Options or SARs shall comply with section 424(a) of the Code (whether or not the Options are ISOs). 
 (d) The acceleration of the exercisability of 25% of the then unexercisable portion of such Options and SARs and acceleration
of vesting of 25% of the then unvested portion of the Common Shares subject to such Options and SARs, followed by the cancellation of all outstanding Options and SARs. The acceleration of exercisability of such Options and SARs and vesting of such
Common Shares may be contingent on the closing of such merger or consolidation. The Optionees shall be able to exercise such Options and SARs during a period of not less than five full business days preceding the closing date of such merger or
consolidation, unless (i) a shorter period is required to permit a timely closing of such merger or consolidation and (ii) such shorter period still offers the Optionees a reasonable opportunity to exercise such Options and SARs. Any
exercise of such Options and SARs during such period may be contingent on the closing of such merger or consolidation. 
 (e) The cancellation of outstanding Options and SARs and a payment to the Optionees equal to the excess of (i) the Fair Market Value of the Common Shares subject to such Options and SARs (whether or not such Options and SARs are then
exercisable or such Common Shares are then vested) as of the closing date of such merger or consolidation over (ii) their Exercise Price. Such payment shall be made in the form of cash, cash equivalents, or securities of the surviving
corporation or its parent with a Fair Market Value equal to the required amount. Such payment may be made in installments and may be deferred until the date or dates when such Options and SARs would have become exercisable or such Common Shares
would have vested. Such payment may be subject to vesting based on the Optionee’s continuing Service, provided that the vesting schedule shall not be less favorable to the Optionee than the schedule under which such Options and SARs would have
become exercisable or such Common Shares would have vested. If the Exercise Price of the Common Shares subject to such Options and SARs exceeds the Fair Market Value of such Common Shares, then such Options and SARs may be cancelled without making a
payment to the

  

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Optionees. For purposes of this Subsection (e), the Fair Market Value of any security shall be determined without regard to any vesting conditions that may apply to such security. 
 (f) The cancellation of outstanding Stock Units and a payment to the Participants equal to the Fair Market Value of the
Common Shares subject to such Stock Units (whether or not such Stock Units are then vested) as of the closing date of such merger or consolidation. Such payment shall be made in the form of cash, cash equivalents, or securities of the surviving
corporation or its parent with a Fair Market Value equal to the required amount. Such payment may be made in installments and may be deferred until the date or dates when such Stock Units would have vested. Such payment may be subject to vesting
based on the Participant’s continuing Service, provided that the vesting schedule shall not be less favorable to the Participant than the schedule under which such Stock Units would have vested. For purposes of this Subsection (f), the Fair
Market Value of any security shall be determined without regard to any vesting conditions that may apply to such security. 
 10.4 Acceleration. The Committee shall have the discretion, exercisable either at the time the Award is granted or at any time while the Award remains outstanding, to provide for the automatic acceleration of vesting upon the
occurrence of a Change in Control, whether or not the Award is to be assumed or replaced in the Change in Control, or in connection with a termination of a Participant’s Service following a Change in Control. 
 ARTICLE 11. AWARDS UNDER OTHER PLANS. 
 The Company may grant awards under other plans or programs. Such awards may be settled in the form of Common Shares issued under this Plan. Such Common Shares shall be treated for all purposes under the
Plan like Common Shares issued in settlement of Stock Units and shall, when issued, reduce the number of Common Shares available under Article 3. 
 ARTICLE 12. PAYMENT OF DIRECTOR’S FEES IN SECURITIES. 
 12.1
Effective Date. No provision of this Article 12 shall be effective unless and until the Board has determined to implement such provision. 
 12.2 Elections to Receive NSOs, Restricted Shares or Stock Units. An Outside Director may elect to receive his or her annual retainer payments and/or meeting fees from the Company in the form of
cash, NSOs, Restricted Shares or Stock Units, or a combination thereof, as determined by the Board. Such NSOs, Restricted Shares and Stock Units shall be issued under the Plan. An election under this Article 12 shall be filed with the Company on the
prescribed form. 
 12.3 Number and Terms of NSOs, Restricted Shares or Stock Units. The number of NSOs, Restricted
Shares or Stock Units to be granted to Outside Directors in lieu of annual retainers and meeting fees that would otherwise be paid in cash shall be calculated in a manner determined by the Board. The Board shall also determine the terms of such
NSOs, Restricted Shares or Stock Units. 
  

 10 

 ARTICLE 13. LIMITATION ON RIGHTS. 
 13.1 Retention Rights. Neither the Plan nor any Award granted under the Plan shall be deemed to give any individual a right to remain
an Employee, Outside Director or Consultant. The Company and its Parents, Subsidiaries and Affiliates reserve the right to terminate the Service of any Employee, Outside Director or Consultant at any time, with or without cause, subject to
applicable laws, the Company’s certificate of incorporation and by-laws and a written employment agreement (if any). 
 13.2 Stockholders’ Rights. A Participant shall have no dividend rights, voting rights or other rights as a stockholder with respect to any Common Shares covered by his or her Award prior to the time when a stock certificate for
such Common Shares is issued or, if applicable, the time when he or she becomes entitled to receive such Common Shares by filing any required notice of exercise and paying any required Exercise Price. No adjustment shall be made for cash dividends
or other rights for which the record date is prior to such time, except as expressly provided in the Plan. 
 13.3 Regulatory
Requirements. Any other provision of the Plan notwithstanding, the obligation of the Company to issue Common Shares under the Plan shall be subject to all applicable laws, rules and regulations and such approval by any regulatory body as may be
required. The Company reserves the right to restrict, in whole or in part, the delivery of Common Shares pursuant to any Award prior to the satisfaction of all legal requirements relating to the issuance of such Common Shares, to their registration,
qualification or listing or to an exemption from registration, qualification or listing. 
 ARTICLE 14. WITHHOLDING TAXES.

 14.1 General. To the extent required by applicable federal, state, local or foreign law, a Participant or his or
her successor shall make arrangements satisfactory to the Company for the satisfaction of any withholding tax obligations that arise in connection with the Plan. The Company shall not be required to issue any Common Shares or make any cash payment
under the Plan until such obligations are satisfied. 
 14.2 Share Withholding. To the extent that applicable law
subjects a Participant to tax withholding obligations, the Committee may permit such Participant to satisfy all or part of such obligations by having the Company withhold all or a portion of any Common Shares that otherwise would be issued to him or
her or by surrendering all or a portion of any Common Shares that he or she previously acquired. Such Common Shares shall be valued at their Fair Market Value on the date when they are withheld or surrendered. 
 ARTICLE 15. FUTURE OF THE PLAN. 
 15.1 Term of the Plan. The Plan, as set forth herein, shall become effective on the effective date of the IPO. The Plan shall remain in effect until the earlier of (a) the date when the Plan
is terminated under Section 15.2 or (b) the 10th
anniversary of the date when the Board adopted the Plan. The Plan shall serve as the successor to the 2002 Stock Plan, and no further option grants shall be made under the 2002 Stock Plan after the Plan effective date. All options outstanding under
the 2002 Stock Plan as of such date shall, immediately upon effectiveness of

  

 11 

 
the Plan, remain outstanding in accordance with their terms. Each outstanding option under the 2002 Stock Plan shall continue to be governed solely by the terms of the documents evidencing such
option, and no provision of the Plan shall be deemed to affect or otherwise modify the rights or obligations of the holders of such options with respect to their acquisition of Common Shares. 
 15.2 Amendment or Termination. The Board may, at any time and for any reason, amend or terminate the Plan. No Awards shall be granted
under the Plan after the termination thereof. The termination of the Plan, or any amendment thereof, shall not affect any Award previously granted under the Plan. 
 15.3 Stockholder Approval. An amendment of the Plan shall be subject to the approval of the Company’s stockholders only to the extent required by applicable laws, regulations or rules.
However, section 162(m) of the Code may require that the Company’s stockholders approve: 
 (a) The Plan not
later than the first regular meeting of stockholders that occurs in the fourth calendar year following the calendar year in which the Company’s initial public offering occurred; and 
 (b) The performance criteria set forth in Appendix A not later than the first meeting of stockholders that occurs in the
fifth year following the year in which the Company’s stockholders previously approved such criteria. 
 ARTICLE 16.
DEFINITIONS. 
 16.1 “2002 Stock Plan” means the Company’s existing 2002 Stock Plan. 
 16.2 “Affiliate” means any entity other than a Subsidiary, if the Company and/or one or more Subsidiaries own not less than
50% of such entity. 
 16.3 “Award” means any award of an Option, an SAR, a Restricted Share or a Stock Unit
under the Plan. 
 16.4 “Board” means the Company’s Board of Directors, as constituted from time to time.

 16.5 “Change in Control” means: 
 (a) The consummation of a merger or consolidation of the Company with or into another entity or any other corporate
reorganization, if persons who were not stockholders of the Company immediately prior to such merger, consolidation or other reorganization own immediately after such merger, consolidation or other reorganization 50% or more of the voting power of
the outstanding securities of each of (i) the continuing or surviving entity and (ii) any direct or indirect parent corporation of such continuing or surviving entity; 
  

 12 

 (b) The sale, transfer or other disposition of all or substantially all of
the Company’s assets; 
 (c) A change in the composition of the Board, as a result of which fewer than 50%
of the incumbent directors are directors who either: 
 (i) Had been directors of the Company on the date 24
months prior to the date of such change in the composition of the Board (the “Original Directors”); or 
 (ii) Were appointed to the Board, or nominated for election to the Board, with the affirmative votes of at least a majority of the aggregate of (A) the Original Directors who were in office at the time of their appointment or
nomination and (B) the directors whose appointment or nomination was previously approved in a manner consistent with this Paragraph (ii); or 
 (d) Any transaction as a result of which any person is the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing
at least 50% of the total voting power represented by the Company’s then outstanding voting securities. For purposes of this Subsection (d), the term “person” shall have the same meaning as when used in sections 13(d) and 14(d) of the
Exchange Act but shall exclude (i) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or of a Parent or Subsidiary and (ii) a corporation owned directly or indirectly by the stockholders of the
Company in substantially the same proportions as their ownership of the common stock of the Company. 
 A transaction shall not constitute a
Change in Control if its sole purpose is to change the state of the Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities
immediately before such transaction. 
 16.6 “Code” means the Internal Revenue Code of 1986, as amended.

 16.7 “Committee” means a committee of the Board, as described in Article 2. 
 16.8 “Common Share” means one share of the common stock of the Company. 
 16.9 “Company” means Data Domain, Inc., a Delaware corporation. 
 16.10 “Consultant” means a consultant or adviser who provides bona fide services to the Company, a Parent, a Subsidiary or
an Affiliate as an independent contractor. 
 16.11 “Employee” means a common-law employee of the Company, a
Parent, a Subsidiary or an Affiliate. 
  

 13 

 16.12 “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 16.13 “Exercise Price,” in the case of an Option, means the amount for which one Common Share may be
purchased upon exercise of such Option, as specified in the applicable Stock Option Agreement. “Exercise Price,” in the case of an SAR, means an amount, as specified in the applicable SAR Agreement, which is subtracted from the Fair Market
Value of one Common Share in determining the amount payable upon exercise of such SAR. 
 16.14 “Fair Market
Value” means the market price of Common Shares, determined by the Committee in good faith on such basis as it deems appropriate. Whenever possible, the determination of Fair Market Value by the Committee shall be based on the prices
reported in The Wall Street Journal. Such determination shall be conclusive and binding on all persons. 
 16.15
“IPO” means the initial public offering of the Company’s Common Stock. 
 16.16 “ISO”
means an incentive stock option described in section 422(b) of the Code. 
 16.17 “NSO” means a stock option
not described in sections 422 or 423 of the Code. 
 16.18 “Option” means an ISO or NSO granted under the Plan
and entitling the holder to purchase Common Shares. 
 16.19 “Optionee” means an individual or estate who holds
an Option or SAR. 
 16.20 “Outside Director” means a member of the Board who is not an Employee. 

16.21 “Parent” means any corporation (other than the Company) in an unbroken chain of corporations ending with the
Company, if each of the corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a
Parent on a date after the adoption of the Plan shall be considered a Parent commencing as of such date. 
 16.22
“Participant” means an individual or estate who holds an Award. 
 16.23 “Plan” means this
Data Domain, Inc. 2007 Equity Incentive Plan, as amended from time to time. 
 16.24 “Restricted Share” means a
Common Share awarded under the Plan. 
  

 14 

 16.25 “Restricted Stock Agreement” means the agreement between the Company
and the recipient of a Restricted Share that contains the terms, conditions and restrictions pertaining to such Restricted Share. 
 16.26 “SAR” means a stock appreciation right granted under the Plan. 
 16.27 “SAR
Agreement” means the agreement between the Company and an Optionee that contains the terms, conditions and restrictions pertaining to his or her SAR. 
 16.28 “Service” means service as an Employee, Outside Director or Consultant. 
 16.29 “Stock Option Agreement” means the agreement between the Company and an Optionee that contains the terms, conditions and restrictions pertaining to his or her Option. 
 16.30 “Stock Unit” means a bookkeeping entry representing the equivalent of one Common Share, as awarded under the Plan.

 16.31 “Stock Unit Agreement” means the agreement between the Company and the recipient of a Stock Unit that
contains the terms, conditions and restrictions pertaining to such Stock Unit. 
 16.32 “Subsidiary” means any
corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting
power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date. 
  

 15 

 APPENDIX A 
 PERFORMANCE CRITERIA FOR RESTRICTED SHARES AND STOCK UNITS 
 The
performance goals that may be used by the Committee for such awards shall consist of: operating profits (including EBITDA), net profits, earnings per share, profit returns and margins, revenues, stockholder return and/or value, stock price and
working capital. Performance goals may be measured solely on a corporate, subsidiary or business unit basis, or a combination thereof. Further, performance criteria may reflect absolute entity performance or a relative comparison of entity
performance to the performance of a peer group of entities or other external measure of the selected performance criteria. Profit, earnings and revenues used for any performance goal measurement shall exclude: gains or losses on operating asset
sales or dispositions; asset write-downs; litigation or claim judgments or settlements; accruals for historic environmental obligations; effect of changes in tax law or rate on deferred tax liabilities; accruals for reorganization and restructuring
programs; uninsured catastrophic property losses; the cumulative effect of changes in accounting principles; and any extraordinary non-recurring items as described in Accounting Principles Board Opinion No. 30 and/or in management’s
discussion and analysis of financial performance appearing in the Company’s annual report to stockholders for the applicable year.FastScale Technology Inc 2006 Stock Incentive Plan

 Exhibit 10.3 
 FASTSCALE TECHNOLOGY, INC. 
 2006 STOCK INCENTIVE PLAN 
 1. Purpose. The purpose of this
2006 Stock Incentive Plan (the “Plan”) is to enable FASTSCALE TECHNOLOGY, INC., a Delaware corporation, (the “Corporation”) to attract and retain the services of
selected employees, officers, directors and other key contributors (including consultants and non-employee agents) of the Corporation or any Parent or Subsidiary of the Corporation. 
 Capitalized terms used herein shall have the meanings ascribed to such terms in Section 3.3. 
 2. Shares Subject to the Plan. Subject to adjustment as provided below, the shares to be offered under the Plan shall consist
of Common Stock of the Corporation, and the total number of shares of Common Stock that may be issued under the Plan shall not exceed Two Million Five Hundred Thousand (2,500,000) shares. The shares issued under the Plan may be authorized and
unissued shares or reacquired shares. If an option or stock appreciation right granted under the Plan expires, terminates or is cancelled, the unissued shares subject to such option or stock appreciation right shall again be available under the
Plan. If shares sold or awarded as a bonus under the Plan are forfeited to the Corporation, the number of shares forfeited shall again be available under the Plan. 
 3. Effective Date, Duration and Definitions. 
 3.1 Effective
Date. The Plan shall become effective as of March 23, 2006. 
 3.2 Duration. The Plan shall continue
in effect until all shares available for issuance under the Plan have been issued and all restrictions on such shares have lapsed. The Board may suspend or terminate the Plan at any time except with respect to options and shares subject to
restrictions then outstanding under the Plan. Termination shall not affect any outstanding option or the forfeitability of shares issued under the Plan. 
 3.3 Definitions. The following definitions shall apply to the respective capitalized terms used herein: 
 Board means the Board of Directors of FastScale Technology, Inc. 
 Code means the Internal Revenue Code of 1986, as amended. 
 Common Stock means the Common
Stock of FastScale Technology, Inc. 
 Corporation means FastScale Technology, Inc., a Delaware corporation.

 Employee means an individual who is in the employ of the Corporation or one or more Parent or Subsidiary
corporations. An optionee shall be considered to be an Employee for so long as such individual remains in the employ of the Corporation or one or

 
more Parent or Subsidiary corporations, subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of performance. 
 Exercise Date shall be the date on which written notice of the exercise of an outstanding option under the Plan is delivered
to the Corporation. Such notice shall be in the form of a stock purchase agreement incorporating any first refusal rights or repurchase rights retained by the Corporation with respect to the Common Stock purchased under the option. 
 Fair Market Value of a share of Common Stock on any relevant date shall be determined in accordance with the following
provisions: 
 (a) If the Common Stock is not at the time listed or admitted to trading on any stock exchange but is traded in
the over-the-counter market, the Fair Market Value shall be the mean between the highest bid and the lowest asked prices (or if such information is available the closing selling price) per share of Common Stock on the date in question in the
over-the-counter market, as such prices are reported by the National Association of Securities Dealers through its NASDAQ National Market System or any successor system. If there are no reported bid and asked prices (or closing selling price) for
the Common Stock on the date in question, then the mean between the highest bid and lowest asked prices (or closing selling price) on the last preceding date for which such quotations exist shall be determinative of Fair Market Value. 
 (b) If the Common Stock is at the time listed or admitted to trading on any stock exchange, then the Fair Market Value shall be the closing
selling price per share of Common Stock on the date in question on the stock exchange determined by the Plan Administrator to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of transactions on
such exchange. If there is no reported sale of Common Stock on such exchange on the date in question, then the Fair Market Value shall be the closing selling price on the exchange on the last preceding date for which such quotation exists.

 (c) If the Common Stock is at the time neither listed nor admitted to trading on any stock exchange nor traded in the
over-the-counter market, or if the Plan Administrator determines that the valuation provisions of subsections (i) and (ii) above will not result in a true and accurate valuation of the Common Stock, then the Fair Market Value shall be
determined by the Plan Administrator after taking into account such factors as the Plan Administrator shall deem appropriate under the circumstances. 
 Incentive Option means an incentive stock option, which satisfies the requirements of Section 422 of the Code. 
 Non-Statutory Option means an option not intended to meet the statutory requirements prescribed for an Incentive Option.

 Parent corporation means any corporation (other than the Corporation) in an unbroken chain of corporations
ending with the Corporation, provided each such corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all
classes of stock in one of the other corporations in such chain. 

 Plan means this FastScale Technology, Inc. 2006 Stock Incentive Plan.

 Plan Administrator means the Board or the Committee, to the extent the Committee is responsible for plan
administration in accordance with Section 4. 
 Retirement or Retire means, unless otherwise
defined by the Plan Administrator from time to time for the purposes of the Plan, termination of Service on or after the date the individual reaches “normal retirement age” as that term is defined in Section 411(a)(8) of the Code.

 Service means the performance of services for the Corporation or one or more Parent or Subsidiary corporations
by an individual in the capacity of an Employee, a non-employee member of the board of directors or an independent consultant or advisor, unless a different meaning is specified in the option agreement evidencing the option grant, the purchase
agreement evidencing the purchased option shares or the issuance agreement evidencing any direct stock issuance. An optionee shall be deemed to remain in Service for so long as such individual renders services to the Corporation or any Parent or
Subsidiary corporation on a periodic basis in the capacity of an Employee, a non-employee member of the board of directors or an independent consultant or advisor. 
 Subsidiary corporation means each corporation (other than the Corporation) in an unbroken chain of corporations beginning with the Corporation, provided each such corporation (other than the
last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 

10% Shareholder means the owner of stock (as determined under Section 424(d) of the Code) possessing 10% or more of
the total combined voting power of all classes of stock of the Corporation or any Parent or Subsidiary corporation. 
 4.
Administration. 
 4.1 Board of Directors. The Plan shall be administered by the Board of Directors
of the Corporation, which shall determine and designate from time to time the individuals to whom awards shall be made, the amount of the awards and the other terms and conditions of the awards. Subject to the provisions of the Plan, the Plan
Administrator may from time to time adopt and amend rules and regulations relating to administration of the Plan, advance the lapse of any waiting period, accelerate any Exercise Date, waive or modify any restriction applicable to shares (except
those restrictions imposed by law) and make all other determinations in the judgment of the Plan Administrator necessary or desirable for the administration of the Plan. The interpretation and construction of the provisions of the Plan and related
agreements by the Plan Administrator shall be final and conclusive. The Plan Administrator may correct any defect or supply any omission or reconcile any inconsistency in the Plan or in any related agreement in the manner and to the extent it shall
deem expedient to carry the Plan into effect, and it shall be the sole and final judge of such expediency. 
 4.2
Committee. The Plan Administrator may delegate to a committee of the Board or specified officers of the Corporation, or both (the “Committee”) any or all

 
authority for administration of the Plan. If authority is delegated to a Committee, all references to the Plan Administrator in the Plan shall mean and relate to the Committee except 

(a) as otherwise provided by the Board, 
 (b) that only the Board may amend or terminate the Plan as provided in Section 3.2 and Section 13; and 
 (c) that a Committee including officers of the Corporation shall not be permitted to grant options to persons who are officers of the Corporation. 
 5. Types of Awards: Eligibility. The Plan Administrator may, from time to time, take the following actions, separately or in
combination, under the Plan: 
 5.1 grant Incentive Options, as defined in Section 422 of the Code, as provided in Sections
6.1 and 6.2; 
 5.2 grant options other than Incentive Options (“Non-Statutory Options”) as provided in Sections 6.1
and 6.3; 
 5.3 award stock bonuses as provided in Section 7; 
 5.4 sell shares subject to restrictions as provided in Section 8; and 
 5.5 grant cash bonus rights as provided in Section 9. 
 Any such awards may be made to Employees, directors, officers, consultants and advisors; provided, however, that awards shall only be made to consultants and advisors if (i) they are natural persons;
(ii) they provide bona fide services to the Corporation, its Parents, its majority-owned subsidiaries or majority-owned subsidiaries of its Parent; and (iii) the services are not in connection with the offer or sale of securities in a
capital-raising transaction, and do not directly or indirectly promote or maintain a market for the Corporation’s securities. Further, only Employees of the Corporation, or any Parent or Subsidiary corporation, shall be eligible to receive
Incentive Options under the Plan. The Plan Administrator shall select the individuals to whom awards shall be made and shall specify the action taken with respect to each individual to whom an award is made. At the discretion of the Plan
Administrator, an individual may be given an election to surrender an award in exchange for the grant of a new award. 
 6.
Option Grants. 
 6.1 General Rules Relating to Options. 
 (a) Terms of Grant. The Plan Administrator may grant options under the Plan. With respect to each option grant, the Plan
Administrator shall determine the number of shares subject to the option, the option price, the period of the option, the time or times at which the option may be exercised and whether the option is an Incentive Option or a Non-Statutory Option.

 (b) Exercise of Options. Except as provided in Section 6.1(d) or as
determined by the Plan Administrator, no option granted under the Plan may be exercised unless at the time of such exercise the optionee is in Service with the Corporation and shall have been so employed or provided such service continuously since
the date such option was granted. Absence on leave or on account of illness or disability under rules established by the Plan Administrator shall not, however, be deemed an interruption of Service for this purpose. Unless otherwise determined by the
Plan Administrator, vesting of options shall not continue during an absence on leave (including an extended illness) or on account of disability. Except as provided in Section 6.1(d) and Section 11, options granted under the Plan may be
exercised from time to time over the period stated in each option in such amounts and at such times as shall be prescribed by the Plan Administrator, provided that options shall not be exercised for fractional shares. Unless otherwise determined by
the Plan Administrator, if the optionee does not exercise an option in any one year with respect to the full number of shares to which the optionee is entitled in that year, the optionee’s rights shall be cumulative and the optionee may
purchase those shares in any subsequent year during the term of the option. 
 (c) Nontransferability. Each
Incentive Option and, unless otherwise determined by the Plan Administrator, each other option granted under the Plan by its terms shall be nonassignable and nontransferable by the optionee, either voluntarily or by operation of law, except by will
or by the laws of descent and distribution of the state or country of the optionee’s domicile at the time of death, and each option by its terms shall be exercisable during the optionee’s lifetime only by the optionee. 
 (d) Termination of Service. 
 (i) General Rule. Unless otherwise determined by the Plan Administrator, in the event the Service of the optionee with the Corporation, Parent or Subsidiary terminates for any reason other
than because of Retirement, physical disability or death as provided in Sections 6.1(d)(ii) and 6.1(d)(iii), or for Cause, the option may be exercised at any time prior to the expiration date of the option or the expiration of 90 days after the date
of such termination, whichever is the shorter period, but only if and to the extent the optionee was entitled to exercise the option at the date of such termination. 
 (ii) Termination Because of Retirement or Physical Disability. Unless otherwise determined by the Plan Administrator, in the event of the termination of Service because of Retirement, or
physical disability (as that term is defined in Section 22(e)(3) of the Code), the option may be exercised at any time prior to the expiration date of the option or the expiration of 12 months after the date of such termination, whichever is
the shorter period, but only if and to the extent the optionee was entitled to exercise the option at the date of such termination. 
 (iii) Termination Because of Death. Unless otherwise determined by the Plan Administrator, in the event of the death of an optionee while in Service with the Corporation or a Parent or Subsidiary, the option may be exercised
at any time prior to the expiration date of the option or the expiration of 12 months after the date of such death, whichever is the shorter period, but only if and to the extent the optionee was entitled to exercise the option at the date of such
termination and only by the person or

 
persons to whom such optionee’s rights under the option shall pass by the optionee’s will or by the laws of descent and distribution of the state or country of domicile at the time of
death. 
 (iv) Amendment of Exercise Period Applicable to Termination. The Plan Administrator, at the time of
grant or at any time thereafter, may extend the 90-day and 12-month exercise periods to any length of time that is not later than the original expiration date of the option, and may increase the portion of an option that is exercisable, subject to
such terms and conditions as the Plan Administrator may determine. 
 (v) Failure to Exercise Option. To the
extent that the option of any deceased optionee or of any optionee whose Service terminates is not exercised within the applicable period, all further rights to purchase shares pursuant to such option shall cease and terminate. 
 (e) Purchase of Shares. Unless the Plan Administrator determines otherwise, shares may be acquired pursuant to an option
granted under the Plan only upon receipt by the Corporation of notice in writing from the optionee of the optionee’s intention to exercise, specifying the number of shares as to which the optionee desires to exercise the option and the date on
which the optionee desires to complete the transaction, and if required in order to comply with the Securities Act of 1933, as amended, containing a representation that it is the optionee’s present intention to acquire the shares for investment
and not with a view to distribution, and any other information the Plan Administrator may request. Unless the Plan Administrator determines otherwise, on or before the date specified for completion of the purchase of shares pursuant to an option,
the optionee must have paid the Corporation the full purchase price of such shares in cash (including, with the consent of the Plan Administrator, cash that may be the proceeds of a loan from the Corporation) or, with the consent of the Plan
Administrator, in whole or in part, in Common Stock of the Corporation valued at Fair Market Value on the Exercise Date, restricted stock valued at Fair Market Value on the Exercise Date without regard to such restrictions, or other contingent
awards denominated in either stock or cash, deferred compensation credits, promissory notes and other forms of consideration. No shares shall be issued until full payment therefore has been made. Each optionee who has exercised an option shall
immediately upon notification of the amount due, if any, pay to the Corporation in cash amounts necessary to satisfy any applicable federal, state and local tax withholding requirements. If additional withholding is or becomes required beyond any
amount deposited before delivery of the certificates, the optionee shall pay such amount to the Corporation on demand. If the optionee fails to pay the amount demanded, the Corporation may withhold that amount from other amounts payable by the
Corporation to the optionee, including salary, subject to applicable law. Upon the exercise of an option, the number of shares reserved for issuance under the Plan shall be reduced by the number of shares issued upon exercise of the option, less the
number of shares surrendered in payment of the option exercise. 
 (f) Right of First Refusal. The Corporation
shall have the right of first refusal with respect to any proposed sale or other disposition by optionee of any shares of Common Stock issued pursuant to the Plan, until the date on which the Common Stock is registered under Section 12(g) of
the Securities Exchange Act of 1934, as amended. Such right of first refusal shall be exercisable in accordance with the terms and conditions established by the Plan Administrator and set forth in the stock purchase agreement evidencing the purchase
of such option shares. 

 6.2 Incentive Options. The terms and conditions specified below shall be
applicable to all Incentive Options granted under the Plan. Incentive Options may only be granted to individuals who are Employees. Options, which are specifically designated as Non-Statutory Options when issued under the Plan shall not be subject
to such terms and conditions. 
 (a) Limitation on Amount of Grants. No Employee may be granted Incentive Options
under the Plan if the aggregate Fair Market Value, on the date of grant, of the Common Stock with respect to which Incentive Options are exercisable for the first time by that Employee during any calendar year under the Plan and under any other
incentive stock option plan (within the meaning of Section 422 of the Code) of the Corporation or any Parent or Subsidiary of the Corporation exceeds $100,000. 
 (b) Limitations on Grants to 10% Shareholders. An Incentive Option may be granted under the Plan to an Employee possessing more than 10% of the total combined voting power of all classes of
stock of the Corporation or of any Parent or Subsidiary of the Corporation only if the option price is at least 110% of the Fair Market Value of the Common Stock subject to the option on the date it is granted, as described in Section 6.2(d),
and the option by its terms is not exercisable after the expiration of five years from the date it is granted. 
 (c)
Duration of Options. Subject to Sections 6.1(d) and 6.2(b), Incentive Options granted under the Plan shall continue in effect for the period fixed by the Plan Administrator, except that no Incentive Option shall be exercisable after
the expiration of 10 years from the date it is granted. 
 (d) Option Price. The option price per share shall be
determined by the Plan Administrator at the time of grant. Except as provided in Section 6.2(b), the option price shall not be less than 100% of the Fair Market Value of the Common Stock covered by the Incentive Option at the date the option is
granted. The Fair Market Value shall be determined by the Plan Administrator. 
 (e) Limitation on Time of Grant.
No Incentive Option shall be granted on or after the tenth anniversary of the effective date of the Plan. 
 (f)
Conversion of Incentive Options. The Plan Administrator may at any time without the consent of the optionee convert an Incentive Option to a Non-Statutory Option. 
 6.3 Non-Statutory Options. Non-Statutory Options shall be subject to the following additional terms and conditions:

 (a) Option Price. The option price for Non-Statutory Options shall be determined by the Plan Administrator at
the time of grant. The option price may be less than the Fair Market Value of the shares on the date of grant. 
 (b)
Duration of Options. Non-Statutory Options granted under the Plan shall continue in effect for the period fixed by the Plan Administrator. 

 7. Stock Bonuses. The Plan Administrator may award shares under the Plan as
stock bonuses. Shares awarded as a bonus shall be subject to the terms, conditions, and restrictions determined by the Plan Administrator. The restrictions may include restrictions concerning transferability and forfeiture of the shares awarded,
together with such other restrictions as may be determined by the Plan Administrator. The Plan Administrator may require the recipient to sign an agreement as a condition of the award. The agreement may contain any terms, conditions, restrictions,
representations and warranties required by the Plan Administrator. The certificates representing the shares awarded shall bear any legends required by the Plan Administrator. The Corporation may require any recipient of a stock bonus to pay to the
Corporation in cash upon demand amounts necessary to satisfy any applicable federal, state or local tax withholding requirements. If the recipient fails to pay the amount demanded, the Corporation may withhold that amount from other amounts payable
by the Corporation to the recipient, including salary or fees for services, subject to applicable law. Upon the issuance of a stock bonus, the number of shares reserved for issuance under the Plan shall be reduced by the number of shares issued.

 8. Restricted Stock. The Plan Administrator may issue shares under the Plan for such consideration (including
promissory notes and services) as determined by the Plan Administrator, which consideration may be less than Fair Market Value of the Common Stock at the time of issuance. Shares issued under the Plan shall be subject to the terms, conditions and
restrictions determined by the Plan Administrator. The restrictions may include restrictions concerning transferability and forfeiture of the shares issued, together with such other restrictions as may be determined by the Plan Administrator. All
Common Stock issued pursuant to this Section 8 shall be subject to a purchase agreement, which shall be executed by the Corporation and the prospective recipient of the shares prior to the delivery of certificates representing such shares to
the recipient. The purchase agreement may contain any terms, conditions, restrictions, representations and warranties required by the Plan Administrator. The certificates representing the shares shall bear any legends required by the Plan
Administrator. The Corporation may require any purchaser of restricted stock to pay to the Corporation in cash upon demand amounts necessary to satisfy any applicable federal, state or local tax withholding requirements. If the purchaser fails to
pay the amount demanded, the Corporation may withhold that amount from other amounts payable by the Corporation to the purchaser, including salary, subject to applicable law. Upon the issuance of restricted stock, the number of shares reserved for
issuance under the Plan shall be reduced by the number of shares issued. 
 9. Cash Bonus Rights. 
 9.1 Grant. The Plan Administrator may grant cash bonus rights under the Plan in connection with (i) options granted or
previously granted; (ii) stock bonuses awarded or previously awarded; and (iii) shares sold or previously sold under the Plan. Cash bonus rights will be subject to rules, terms and conditions as the Plan Administrator may prescribe. The
payment of a cash bonus shall not reduce the number of shares of Common Stock reserved for issuance under the Plan. 
 9.2
Cash Bonus Rights in Connection with Options. A cash bonus right granted in connection with an option will entitle an optionee to a cash bonus when the related option is exercised (or terminates in connection with the exercise of a
stock appreciation right

 
related to the option) in whole or in part. If an optionee purchases shares upon exercise of an option, and does not exercise a related stock appreciation right, the amount of the bonus shall be
determined by multiplying the excess of the total Fair Market Value of the shares to be acquired upon the exercise over the total option price for the shares by the applicable bonus percentage. The bonus percentage applicable to a bonus right shall
be determined from time to time by the Plan Administrator but shall in no event exceed 75 percent. 
 9.3 Cash Bonus
Rights in Connection With Stock Bonus. A cash bonus right granted in connection with a stock bonus will entitle the recipient to a cash bonus payable when the stock bonus is awarded or restrictions, if any, to which the stock is subject to
lapse. If bonus stock awarded is subject to restrictions and is forfeited by the holder, the cash bonus right granted in connection with the stock bonus shall terminate and may not be exercised. The amount and timing of payment of a cash bonus shall
be determined by the Plan Administrator. 
 9.4 Cash Bonus Rights in Connection With Stock Purchases. A cash bonus
right granted in connection with the purchase of stock pursuant to Section 8 will entitle the recipient to a cash bonus when the shares are purchased or restrictions, if any, to which the stock is subject to lapse. Any cash bonus right granted
in connection with shares purchased pursuant to Section 8 shall terminate and may not be exercised in the event the shares are forfeited by the holder pursuant to applicable restrictions. The amount of any cash bonus to be awarded and timing of
payment of a cash bonus shall be determined by the Plan Administrator. 
 9.5 Taxes. The Corporation shall
withhold from any cash bonus paid pursuant to Section 9 the amount necessary to satisfy any applicable federal, state and local withholding requirements. 
 10. Changes in Capital Structure. If the outstanding Common Stock of the Corporation is hereafter increased or decreased or changed into or exchanged for a different number or kind of shares
or other securities of the Corporation or of another corporation by reason of any recapitalization, reclassification, stock split, combination of shares or dividend payable in shares, appropriate adjustment shall be made by the Plan Administrator in
the number and kind of shares available for awards under the Plan. In addition, the Plan Administrator shall make appropriate adjustment in the number and kind of shares as to which outstanding options, or portions thereof then unexercised, shall be
exercisable, so that the optionee’s proportionate interest before and after the occurrence of the event is maintained. The Plan Administrator may also require that any securities issued in respect of or exchanged for shares issued hereunder
that are subject to restrictions be subject to similar restrictions. Notwithstanding the foregoing, the Plan Administrator shall have no obligation to effect any adjustment that would or might result in the issuance of fractional shares, and any
fractional shares resulting from any adjustment may be disregarded or provided for in any manner determined by the Plan Administrator. Any such adjustments made by the Plan Administrator shall be conclusive. 

 11. Effect of Liquidation or Reorganization. 
 11.1 Cash, Stock or Other Property for Stock. Except as provided in Section 11.2, upon a merger, consolidation,
acquisition of property or stock, reorganization or liquidation of the Corporation, as a result of which the stockholders of the Corporation receive cash, stock or other property in exchange for or in connection with their shares of Common Stock,
each option outstanding under the Plan shall terminate and cease to be exercisable, unless assumed by the successor corporation or parent thereof. 
 11.2 Conversion of Options on Stock for Stock Exchange. If the stockholders of the Corporation receive capital stock of another corporation (“Exchange Stock”) in exchange for their
shares of Common Stock in any transaction involving a merger, consolidation, acquisition of property or stock, separation or reorganization, the Plan Administrator may, at its sole discretion, (i) accelerate each or any outstanding option under
the Plan so that each or any such option shall, immediately prior to the specified effective date for such transaction, become fully exercisable with respect to any number of shares of Common Stock at the time subject to such option and may be
exercised for all or any portion of such shares; (ii) arrange for each or any outstanding option to either to be assumed by the successor corporation or parent thereof or to be replaced with a comparable option to purchase shares of the capital
stock of the successor corporation or parent thereof; (iii) arrange for the option to be replaced by a comparable cash incentive program of the successor corporation based on the option spread (the amount by which the Fair Market Value of the
shares of Common Stock at the time subject to the option exceeds the option price payable for such shares); or (iv) provided that 15 day advance written notice and an opportunity to exercise has been provided to the holder of each option where
the consideration from such transaction equals or exceeds the exercise price of such option, allow the option to terminate as provided in Section 11.1 above. The determination of comparability under clauses (ii) and (iii) above shall
be made by the Plan Administrator, and such determination shall be final and conclusive. 
 11.3 Incentive
Options. The exercisability as incentive stock options under the Federal tax laws of any options accelerated in connection with this Section 11 shall remain subject to the applicable dollar limitation of Section 6.2(a). 

12. Corporate Mergers, Acquisitions, etc. The Plan Administrator may also grant options, stock bonuses and cash bonuses and
issue restricted stock under the Plan having terms, conditions and provisions that vary from those specified in this Plan provided that any such awards are granted in substitution for, or in connection with the assumption of, existing options, stock
bonuses, cash bonuses and restricted stock granted, awarded or issued by another corporation and assumed or otherwise agreed to be provided for by the Corporation pursuant to or by reason of a transaction involving a corporate merger, consolidation,
acquisition of property or stock, separation, reorganization or liquidation to which the Corporation or any Parent or Subsidiary corporation is a party. 
 13. Amendment of Plan; Compliance With Rule 701. The Board may at any time, and from time to time, modify or amend the Plan in such respects as it shall deem advisable because of
changes in the law while the Plan is in effect or for any other reason. Except as provided in Section 6.1(d), 6.2(f), 10 and 11, however, no change in an award, already granted shall be made without the written consent of the holder of such
award. It is

 
the intent of the Corporation that all provisions of the Plan comply with the requirements for exemption under Rule 701 of the Securities Act of 1933 and, to the extent any provisions of the
Plan do not comply with the requirements of Rule 701, such provisions shall be deemed amended so as to comply with Rule 701 without further action by the Corporation or Plan Administrator. 
 14. Approvals. The obligations of the Corporation under the Plan are subject to the approval of state and federal authorities
or agencies with jurisdiction in the matter. The Corporation shall not be obligated to issue or deliver Common Stock under the Plan if such issuance or delivery would violate applicable state or federal securities laws. 
 15. Service Rights. Nothing in the Plan or any award pursuant to the Plan shall (a) confer upon any Employee any right to
be continued in the employment of the Corporation or any Parent or Subsidiary corporation or interfere in any way with the right of the Corporation or any Parent or Subsidiary corporation by whom such Employee is employed to terminate such
Employee’s employment at any time, for any reason, with or without cause, or to decrease such Employee’s compensation or benefits; or (b) confer upon any person engaged by the Corporation any right to be retained or employed by the
Corporation or to the continuation, extension, renewal, or modification of any compensation, contract, or arrangement with or by the Corporation. 
 16. Rights as a Shareholder. The recipient of any award under the Plan shall have no rights as a shareholder with respect to any Common Stock until the date of issue to the recipient of a
stock certificate for such shares. Except as otherwise expressly provided in the Plan, no adjustment shall be made for dividends or other rights for which the record date occurs prior to the date such stock certificate is issued. 
  

			
	 Date Adopted by Board:
	 	March 23, 2006
		
	 Date Approved by Stockholders:
	 	July 24, 2006

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