Document:

Exhibit 10.62

 

BIXBY OFFICE PARK

SEAL BEACH, CALIFORNIA

 

EIGHTH AMENDMENT TO LEASE

(CLEAN ENERGY)

 

THIS EIGHTH AMENDMENT TO LEASE (this “Amendment”) is made as of January 6, 2012, by and between WESTERN NATIONAL LIFE INSURANCE COMPANY, a Texas corporation (“Landlord”) and CLEAN ENERGY, a California corporation (“Tenant”).

 

RECITALS

 

A.                                    Landlord (as successor-in-interest to BIXBYBIT – Bixby Office Park, LLC) and Tenant are parties to that certain Lease Agreement dated as of August 12, 1999 (the “Original Lease”), as amended by that certain First Amendment to Lease dated as of March 11, 2002, that certain Second Amendment dated as of November 24, 2003, that certain Third Amendment dated as of January 13, 2006, that certain Fourth Amendment dated as of March 15, 2006, that certain Fifth Amendment dated as of October 17, 2006, that certain Sixth Amendment to Lease Agreement dated as of August 1, 2008, and that certain Seventh Amendment to Lease (the “Seventh Amendment”) dated as of September 23, 2010 (collectively, as amended, the “Lease”), with respect to certain premises located at 3010 Old Ranch Parkway, Seal Beach, California 90740 (the “3010 Building”) and 3020 Old Ranch Parkway, Seal Beach California 90740 (the “3020 Building”). All capitalized terms used herein and not otherwise defined herein shall have the meanings set forth in the Lease.

 

B.                                    Pursuant to the Lease, Tenant leases from Landlord certain premises consisting of (i) 19,881 rentable square feet of space comprising the entire fourth (4th) floor of the 3020 Building, (ii) 7,873 rentable square feet of space located on the second (2nd) floor of the 3020 Building and designated as Suite 200, and (iii) 6,136 rentable square feet of space located on the fourth (4th) floor of the 3010 Building and designated as Suite 440, for a total of 33,890 rentable square feet (collectively, the “Existing Premises”), as more particularly described in the Lease.

 

C.                                    Landlord and Tenant desire to expand the Existing Premises covered by the Lease to include approximately 6,285 rentable square feet located on the fourth (4th) floor of the 3010 Building and designated as Suite 450, and on the third (3rd) and fourth (4th) floors of the building located at 3030 Old Ranch Parkway, Seal Beach, California 90740 and designated as Suites 360 and 440, respectively (collectively, the “Expansion Premises”), as more particularly set forth on Exhibit A attached hereto.

 

D.                                    Landlord and Tenant desire to amend the Lease to extend the Term of the Lease, to expand the Existing Premises to include the Expansion Premises, and to modify other provisions of the Lease, all as more particularly set forth herein and subject to the terms hereof.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the mutual covenants contained herein, Landlord and Tenant agree that the Lease is hereby amended as follows:

 

1.                                      EXPANSION OF THE EXISTING PREMISES. Effective as of the Expansion Premises Commencement Date and continuing through to and including the Expiration Date (as those terms are defined in Section 2 below), Landlord shall lease to Tenant and Tenant shall lease from Landlord the Expansion Premises on all of the terms and conditions of the Lease, as amended hereby. From and after the Expansion Premises Commencement Date, all references to the “Premises” in the Lease and this Amendment shall be deemed references to the Existing Premises and the Expansion Premises, collectively, and shall measure 40,175 rentable square feet.

 

2.                                      TERM OF THE LEASE.

 

a.                                       Existing Premises. The Term of the Lease with respect to the Existing Premises remains unchanged and is currently scheduled to expire on March 31, 2018 (the “Expiration Date”).

 

b.                                      Expansion Premises. The Term of the Lease with respect to the Expansion Premises (the “Expansion Premises Term”) shall commence on February 1, 2012 (the “Expansion Premises Commencement Date”), and shall expire coterminously with the Term for the Existing Premises on the Expiration Date (March 31, 2018). It is acknowledged that the terms and conditions of Tenant’s Extension Option set forth in the Extension Option Rider attached to the Seventh Amendment as Rider No. 1 to Seventh Amendment to extend the Term of the Lease following the Expiration Date shall apply to the Existing Premises and Expansion Premises.

 

	
[FINAL EXECUTION COPY]
    	
BIXBY OFFICE PARK
    
	
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3.                                      CONDITION OF THE PREMISES.

 

a.                                       Condition of the Existing Premises. Tenant confirms that (i) it is presently in possession of the Existing Premises pursuant to the Lease and will continue to occupy such space “AS-IS”, (ii) the Existing Premises are suited for the use intended by Tenant, and (iii) the Existing Premises are in good and satisfactory condition. Landlord shall have no obligation whatsoever to construct leasehold improvements for Tenant or to refurbish the Existing Premises.

 

b.                                      Condition and Use of the Expansion Premises. Landlord shall have no obligation whatsoever to construct leasehold improvements for Tenant or to refurbish the Expansion Premises. The taking of possession of the Expansion Premises by Tenant shall be conclusive evidence that Tenant accepts the same “AS-IS” and that the Expansion Premises was in good and satisfactory condition at the time such possession was taken. Tenant acknowledges that neither Landlord nor Landlord’s agents has made any representation or warranty as to the condition of the Expansion Premises or the Building or its suitability for Tenant’s purposes. Tenant represents and warrants to Landlord that (i) its sole intended use of the Expansion Premises is for general office use, which has no special requirements, including but not limited to special security requirements, (ii) it does not intend to use the Expansion Premises for any other purpose, and (iii) prior to executing this Amendment it has made such investigations as it deems appropriate with respect to the suitability of the Expansion Premises for its intended use.

 

4.                                      BASE RENT.

 

a.                                       Base Rent for the Existing Premises. Tenant shall continue to pay Base Rent for the Existing Premises pursuant to and in accordance with the terms of the Lease, as amended.

 

b.                                      Base Rent for the Expansion Premises. Effective as of the Expansion Premises Commencement Date and continuing through to and including the Expiration Date, in addition to all other amounts payable under the Lease, as amended, Tenant shall pay Base Rent for the Expansion Premises as set forth below, in accordance with the terms of the Lease, as amended. Upon execution of this Amendment, Tenant shall pay to Landlord the sum of $17,598.00 constituting the monthly installment of Base Rent due and payable by Tenant for the first (1st) full calendar month of the Expansion Premises Term following the Abatement Period (as defined below).

 

	
Months During the
    	
 
    	
 
    	
 
    	
Monthly
    	
 
    	
Monthly Base Rent per
    	
 
    
	
Expansion Premises
    	
 
    	
Annual Base
    	
 
    	
Installment of
    	
 
    	
Rentable Square Foot of
    	
 
    
	
Term
    	
 
    	
Rent
    	
 
    	
Base Rent
    	
 
    	
the Expansion Premises
    	
 
    
	
February 1,   2012 – January 31, 2013
    	
 
    	
$
    	
211,176.00
    	
 
    	
$
    	
17,598.00
    	
 
    	
$
    	
2.80
    	
 
    
	
February 1,   2013 – January 31, 2014
    	
 
    	
$
    	
217,511.28
    	
 
    	
$
    	
18,125.94
    	
 
    	
$
    	
2.88
    	
 
    
	
February 1,   2014 – January 31, 2015
    	
 
    	
$
    	
224,036.62
    	
 
    	
$
    	
18,669.72
    	
 
    	
$
    	
2.97
    	
 
    
	
February 1,   2015 – January 31, 2016
    	
 
    	
$
    	
230,757.72
    	
 
    	
$
    	
19,229.81
    	
 
    	
$
    	
3.06
    	
 
    
	
February 1,   2016 – January 31, 2017
    	
 
    	
$
    	
237,680.45
    	
 
    	
$
    	
19,806.70
    	
 
    	
$
    	
3.15
    	
 
    
	
February 1,   2017 – January 31, 2018
    	
 
    	
$
    	
244,810.86
    	
 
    	
$
    	
20,400.91
    	
 
    	
$
    	
3.25
    	
 
    
	
February 1,   2018 – March 31, 2018
    	
 
    	
N/A
    	
 
    	
$
    	
21,012.93
    	
 
    	
$
    	
3.34
    	
 
    

 

c.                                       Rent Abatement. Notwithstanding anything to the contrary contained herein and provided that no Event of Default (as defined in Section 15 of the Lease) by Tenant occurs under the Lease and continues to exist beyond the expiration of any applicable notice and cure periods, Landlord hereby agrees that Tenant shall not be required to pay the monthly installments of Base Rent for the Expansion Premises for the first (1st) through fifth (5th) full months of the Expansion Premises Term (the “Abatement Period”). During the Abatement Period, Tenant shall still be responsible for the payment of all of its other monetary obligations under the Lease, as amended, including Base Rent for the Existing Premises and Tenant’s Share of Operating Costs

 

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and Taxes for the Existing Premises and Expansion Premises. If an Event of a Default by Tenant occurs under the terms of the Lease that results in termination of the Lease in accordance with the provisions of Section 15 thereof, then as a part of the recovery set forth in the Lease, Landlord shall be entitled to the recovery of the then unamortized remaining balance of the monthly Base Rent that was abated under the provisions of this Section 4 (such amortization being calculated on a straight line basis over the entire Expansion Premises Term and such balance being determined as of the date of Tenant’s default).

 

5.                                      OPERATING COSTS AND TAXES.

 

a.                                       Base Year, Tenant’s Share for Existing Premises. Operating Costs and Taxes for the Existing Premises only shall continue to be calculated using calendar year 2011 as the Base Year. During the Expansion Premises Term, Tenant shall continue to pay Tenant’s Share of Operating Costs and Taxes, with respect to the Existing Premises, pursuant to and in accordance with the terms of the Lease, as amended. Accordingly, effective as of the date hereof, Tenant’s Share of Operating Costs and Taxes with respect to the Existing Premises shall be 12.65% (33,890 rentable square feet within the Existing Premises/267,915 rentable square feet within the Building).

 

b.                                      Base Year, Tenant’s Share for Expansion Premises. Effective as of the Expansion Premises Commencement Date, Operating Costs and Taxes for the Expansion Premises only shall be calculated using calendar year 2012 as the Base Year. During the Expansion Premises Term, Tenant shall pay Tenant’s Share of Operating Costs and Taxes, with respect to the Expansion Premises, pursuant to and in accordance with the terms of the Lease, as amended. Accordingly, effective as of the Expansion Premises Commencement Date, Tenant’s Share of Operating Costs and Taxes with respect to the Expansion Premises shall be 2.35% (6,285 rentable square feet within the Expansion Premises/267,915 rentable square feet within the Building).

 

c.                                       Building Occupancy. Effective as of the date hereof, if at any time during a calendar year the Project is not at least 95% occupied or Landlord is not supplying services to at least 95% of the total rentable square footage of the Project, Operating Costs shall, at Landlord’s option, be determined as if the Project had been 95% occupied and Landlord had been supplying services to 95% of the rentable square footage of the Project. If Operating Costs for a calendar year are determined as provided in the prior sentence, Operating Costs for the Base Year shall also be determined in such manner.

 

6.                                      INTENTIONALLY DELETED

 

7.                                      SECURITY DEPOSIT. Landlord is currently holding a Security Deposit in the amount of $92,776.40 under the Lease. Upon execution of this Amendment, Tenant shall deposit with Landlord the amount of $23,114.23, as an addition to the Security Deposit. The entire amount of $115,890.63 shall be held as the Security Deposit pursuant to Section 4 (Security Deposit) of the Original Lease, through the date Tenant has satisfied all of its obligations under the Lease, as amended hereby.

 

8.                                      PARKING. In addition to Tenant’s existing parking rights under the Lease, effective as of Expansion Premises Commencement Date, Tenant shall be entitled to an additional twenty-five (25) parking passes for unreserved parking spaces (the “Unreserved Parking Passes”) in the parking areas at the Project, at no cost to Tenant during the Expansion Premises Term, subject, however, to the payment of Operating Costs attributable to the parking areas and to the terms set forth in Section 36 and Exhibit D of the Original Lease. Subject to availability and the consent of Landlord, not to be unreasonably withheld or delayed, Tenant may elect to convert one (1) or more of the Unreserved Parking Passes to parking passes for reserved parking spaces (the “Additional Reserved Parking Passes”) at the monthly rate of $100.00 per Additional Reserved Parking Pass. Tenant agrees to pay for such parking passes as Additional Rent under the Lease for the Expansion Premises Term. On each anniversary of the Expansion Premises Commencement Date, the monthly rates for Tenant’s parking passes shall increase by three percent (3%) of the previous year’s rates. Except as amended hereby, Tenant’s rights and obligations with respect to parking shall continue to be as set forth in the Lease, as amended, and the parking rules for the Property, as may be amended or established by Landlord (or Landlord’s parking operator) from time to time.

 

9.                                      NOTICES. Effective immediately, all notices to Landlord under the Lease shall be sent to the following addresses:

 

WESTERN NATIONAL LIFE INSURANCE COMPANY

c/o AIG Asset Management

Mortgage Lending and Real Estate

1 SunAmerica Center, 38th Floor

 

3

 

Los Angeles, California 90067

Attention: Marla Campagna, Vice President

 

with a copy to:

 

WESTERN NATIONAL LIFE INSURANCE COMPANY

c/o Lincoln Property Company

5 Hutton Centre Drive, Suite 120

Santa Ana, California 92707

Attention: Property Manager

 

10.                               BROKERS. Tenant represents and warrants to Landlord that other than Professional Real Estate Services, Inc. (Brad Schroth) (“PRES”), it has not engaged any broker, finder or other person who would be entitled to any commission or fees in respect of the negotiation, execution or delivery of this Amendment, and shall indemnify, defend and hold harmless Landlord against any loss, cost, liability or expense incurred by Landlord as a result of any claim asserted by any broker, finder or other person on the basis of any arrangements or agreements made or alleged to have been made by or on behalf of Tenant. Landlord hereby confirms and agrees that Landlord shall be responsible for the payment of any leasing commissions payable to brokers representing Landlord or Tenant in connection with this Amendment, including PRES as Tenant’s broker, pursuant to the terms of separate written agreements executed by Landlord.

 

11.                               CONTINUING EFFECTIVENESS. The Lease, except as amended hereby, remains unamended, and, as amended hereby, remains in full force and effect. Tenant hereby confirms that no default by Tenant exists under the Lease.

 

12.                               COUNTERPARTS. This Amendment may be executed in counterparts, each of which shall constitute an original, and all of which, together, shall constitute one document.

 

13.                               EXECUTION BY BOTH PARTIES. Submission of this instrument for examination or signature by Tenant does not constitute a reservation of or option to lease, and it is not effective as an amendment to lease or otherwise until execution by and delivery to both Landlord and Tenant, and execution and delivery hereof.

 

14.                               AUTHORIZATION. The individuals signing on behalf of Tenant each hereby represents and warrants that he or she has the capacity set forth on the signature pages hereof and has full power and authority to bind Tenant to the terms hereof. Two (2) authorized officers must sign on behalf of Tenant and this Amendment must be executed by the president or vice-president and the secretary or assistant secretary of Tenant, unless the bylaws or a resolution of the board of directors shall otherwise provide. In such case, the bylaws or a certified copy of the resolution of Tenant, as the case may be, must be furnished to Landlord.

 

[SIGNATURES ON NEXT PAGE]

 

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

 

	
 
    	
LANDLORD:
    
	
 
    	
 
    
	
 
    	
WESTERN NATIONAL LIFE INSURANCE COMPANY,  
    
	
 
    	
a Texas corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
AIG Asset Management (U.S.), LLC,
    
	
 
    	
 
    	
a Delaware limited liability company
    
	
 
    	
 
    	
its investment adviser
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
LPC West, LLC
    
	
 
    	
 
    	
 
    	
a Delaware limited liability company
    
	
 
    	
 
    	
 
    	
its manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Kevin Hayes
    
	
 
    	
 
    	
 
    	
 
    	
Its: Senior Vice President – Southern
    
	
 
    	
 
    	
 
    	
 
    	
California
    
	
 
    	
 
    	
 
    	
 
    	
DRE # 01414126
    
	
 
    	
 
    	
 
    	
 
    	
BL DRE # 01305666
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
TENANT:
    
	
 
    	
 
    
	
 
    	
CLEAN ENERGY,
    
	
 
    	
a California corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Tenant’s Tax ID Number (SSN or FEIN)
    
						

 

S-1

 

EXHIBIT A

 

EXPANSION PREMISES

 

3010 OLD RANCH PARKWAY, SUITE 450

SEAL BEACH, CA

 

 

	
 
    	
TENANT’S INITIALS HERE:
    	
 
    

 

 

	
[FINAL EXECUTION COPY]
    	
EXHIBIT A
    	
BIXBY OFFICE PARK
    
	
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Clean Energy
    
	
010612
    	
 
    	
25WR-162219
    

 

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3030 OLD RANCH PARKWAY, SUITE 360

SEAL BEACH, CA

 

 

	
 
    	
TENANT’S INITIALS HERE:
    	
 
    

 

2

 

3030 OLD RANCH PARKWAY, SUITE 440

SEAL BEACH, CA

 

 

	
 
    	
TENANT’S INITIALS HERE:
    	
 
    

 

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  Exhibit 10.63    
    

 
    CLEAN ENERGY FUELS CORP.
  AMENDED AND RESTATED 2006 EQUITY INCENTIVE PLAN    
    

        1.    Purpose of the Plan.    The purpose of this Plan is to encourage
ownership in the Company by key personnel whose long-term service the Company considers essential to its continued progress and, thereby, encourage recipients to act in the stockholders'
interest and share in the Company's success. 

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

        "Act"
shall mean the Securities Act of 1933, as amended. 

        "Administrator"
shall mean the Board, any Committees, or such delegates as shall be administering the Plan in accordance with Section 4 of the Plan. 

        "Affiliate"
shall mean any entity that is directly or indirectly in control of or controlled by the Company, or any entity in which the Company has a significant ownership interest as
determined by the Administrator. 

        "Applicable
Laws" shall mean the requirements relating to the administration of stock plans under federal and state laws; any stock exchange or quotation system on which the Company has
listed or submitted for quotation the Common Stock to the extent provided under the terms of the Company's agreement with such exchange or quotation system; and, with respect to Awards subject to the
laws of any foreign jurisdiction where Awards are, or will be, granted under the Plan, to the laws of such jurisdiction. 

        "Award"
shall mean, individually or collectively, a grant under the Plan of an Option, Stock Award, SAR, or Cash Award. 

        "Awardee"
shall mean a Service Provider who has been granted an Award under the Plan. 

        "Award
Agreement" shall mean an Option Agreement, Stock Award Agreement, SAR Agreement, or Cash Award Agreement, which may be in written or electronic format, in such form and with such
terms as may be specified by the Administrator, evidencing the terms and conditions of an individual Award. Each Award Agreement is subject to the terms and conditions of the Plan. 

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

        "Cash
Award" shall mean a bonus opportunity awarded under Section 13 pursuant to which a Participant may become entitled to receive an amount based on the satisfaction of such
performance criteria as are specified in the agreement or other documents evidencing the Award (the "Cash Award Agreement"). 

        "Change
in Control" shall mean any of the following, unless the Administrator provides otherwise: 

          (i)  any
merger or consolidation in which the Company shall not be the surviving entity (or survives only as a subsidiary of another entity whose stockholders did not own
all or substantially all of the Common Stock in substantially the same proportions as immediately before such transaction); 

         (ii)  the
sale of all or substantially all of the Company's assets to any other person or entity (other than a wholly-owned subsidiary of the Company); 

        (iii)  the
acquisition of beneficial ownership of a controlling interest (including power to vote) in the outstanding shares of Common Stock by any person or entity
(including a "group" as defined by or under Section 13(d)(3) of the Exchange Act); 

        (iv)  the
dissolution or liquidation of the Company; 

1

 

         (v)  a
contested election of Directors, as a result of which or in connection with which the persons who were Directors before such election or their nominees cease to
constitute a majority of the Board; or 

        (vi)  any
other event specified, at the time an Award is granted or thereafter, by the Board or a Committee. 

Notwithstanding
the foregoing, the term "Change in Control" shall not include any underwritten public offering of Shares registered under the Act. 

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

        "Committee"
shall mean a committee of Directors appointed by the Board in accordance with Section 4 of the Plan. 

        "Common
Stock" shall mean the common stock of the Company. 

        "Company"
shall mean Clean Energy Fuels Corp., a Delaware corporation, or its successor. 

        "Consultant"
shall mean any natural person, other than an Employee or Director, who performs bona fide services for the Company or an Affiliate as a consultant or advisor. 

        "Conversion
Award" has the meaning set forth in Section 4(b)(xii) of the Plan. 

        "Director"
shall mean a member of the Board. 

        "Disability"
shall mean permanent and total disability as defined in Section 22(e)(3) of the Code. 

        "Employee"
shall mean an employee of the Company or any Affiliate, and may include an Officer or Director. Within the limitations of Applicable Law, the Administrator shall have the
discretion to determine the effect upon an Award and upon an individual's status as an Employee in the case of (i) any individual who is classified by the Company or its Affiliate as leased
from or otherwise employed by a third party or as intermittent or temporary, even if any such classification is changed retroactively as a result of an audit, litigation or otherwise; (ii) any
leave of absence approved by the Company or an Affiliate; (iii) any transfer between locations of employment with the Company or an Affiliate or between the Company and any Affiliate or between
any Affiliates; (iv) any change in the Awardee's status from an employee to a Consultant or Director; and (v) an employee who, at the request of the Company or an Affiliate, becomes
employed by any partnership, joint venture, or corporation not meeting the requirements of an Affiliate in which the Company or an Affiliate is a party. 

        "Exchange
Act" shall mean the Securities Exchange Act of 1934, as amended. 

        "Fair
Market Value" shall mean, unless the Administrator determines otherwise, as of any date, the closing price for such Common Stock as of such date (or if no sales were reported on
such date, the closing price on the last preceding day for which a sale was reported), as reported in such source as the Administrator shall determine. 

        "Grant
Date" shall mean the date upon which an Award is granted to an Awardee pursuant to this Plan. 

        "Incentive
Stock Option" shall mean an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code. 

        "Nonstatutory
Stock Option" shall mean an Option not intended to qualify as an Incentive Stock Option. 

        "Officer"
shall mean a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act. 

2

 

        "Option"
shall mean a right granted under Section 8 of the Plan to purchase a certain number of Shares at such exercise price, at such times, and on such other terms and
conditions as are specified in the agreement or other documents evidencing the Award (the "Option Agreement"). Both Options intended to qualify as Incentive Stock Options and Nonstatutory Stock
Options may be granted under the Plan. 

        "Participant"
shall mean the Awardee or any person (including any estate) to whom an Award has been assigned or transferred as permitted hereunder. 

        "Plan"
shall mean this Clean Energy Fuels Corp. 2006 Equity Incentive Plan. 

        "Prior
Plan" shall mean the Company's 2002 Stock Option Plan authorizing up to 5,750,000 Shares for issuance pursuant to stock options. 

        "Qualifying
Performance Criteria" shall have the meaning set forth in Section 14(b) of the Plan. 

        "Related
Corporation" shall mean any parent or subsidiary (as those terms are defined in Section 424(e) and (f) of the Code) of the Company. 

        "Service
Provider" shall mean an Employee, Officer, Director, or Consultant. 

        "Share"
shall mean a share of the Common Stock, as adjusted in accordance with Section 15 of the Plan. 

        "Stock
Award" shall mean an award or issuance of Shares or Stock Units made under Section 11 of the Plan, the grant, issuance, retention, vesting, and transferability of which is
subject during specified periods to such conditions (including continued service or performance conditions) and terms as are expressed in the agreement or other documents evidencing the Award (the
"Stock Award Agreement"). 

        "Stock
Appreciation Right" or "SAR" shall mean an Award, granted alone or in connection with an Option, that pursuant to Section 12 of the Plan is designated as a SAR. The terms
of the SAR are expressed in the agreement or other documents evidencing the Award (the "SAR Agreement"). 

        "Stock
Unit" shall mean a bookkeeping entry representing an amount equivalent to the fair market value of one Share, payable in cash, property or Shares. Stock Units represent an
unfunded and unsecured obligation of the Company, except as otherwise provided for by the Administrator. 

        "Ten-Percent
Stockholder" shall mean the owner of stock (as determined under Section 424(d) of the Code) possessing more than 10% of the total combined voting power of
all classes of stock of the Company (or any Related Corporation). 

        "Termination
Date" shall mean the date of a Participant's Termination of Service, as determined by the Administrator in its sole discretion. 

        "Termination
of Service" shall mean ceasing to be a Service Provider. However, for Incentive Stock Option purposes, Termination of Service will occur when the Awardee ceases to be an
employee (as determined in accordance with Section 3401(c) of the Code and the regulations promulgated thereunder) of the Company or one of its Related Corporations. The Administrator shall
determine whether any corporate transaction, such as a sale or spin-off of a division or business unit, or a joint venture, shall be deemed to result in a Termination of Service. 

        3.    Stock Subject to the Plan.    

        (a)   Aggregate Limits.

        (i)    Basic Limitation.    The maximum aggregate number of Shares that may be issued under the Plan through Awards
shall be 15,890,500 plus the additional Shares described in Subsections (ii) and (iii). The number in the preceding sentence shall include (A) the number of 

3

 

Shares
available for issuance, as of the effective date of the Plan, under the Prior Plan; plus (B) those Shares that are issuable upon exercise of options granted pursuant to the Prior Plan
that expire or become unexercisable for any reason without having been exercised in full after the effective date of the Plan. Notwithstanding the foregoing, the maximum aggregate number of Shares
that may be issued under the Plan through Incentive Stock Options is 6,390,500 Shares. The limitations of this Section 3(a)(i) shall be subject to the adjustments provided for in
Section 15 of the Plan. 

        (ii)    Annual Increase in Shares.    As of the first day of each Company fiscal year beginning in fiscal year 2007,
the maximum aggregate number of Shares that may be issued under the Plan through Awards, and the maximum aggregate number of Shares that may be issued under the Plan through Incentive Stock Options,
shall each increase by a number equal to the lesser of (A) 15% of the total number of Shares then outstanding, (B) 1,000,000 Shares, and (C) an amount determined by the Board. 

        (iii)    Additional Shares.    Upon payment in Shares pursuant to the exercise of an Award, the number of Shares
available for issuance under the Plan shall be reduced only by the number of Shares actually issued in such payment. If any outstanding Award expires or is terminated or canceled without having been
exercised or settled in full, or if Shares acquired pursuant to an Award subject to forfeiture or repurchase are forfeited or repurchased by the Company, the Shares allocable to the terminated portion
of such Award or such forfeited or repurchased Shares shall again be available to grant under the Plan. Notwithstanding the foregoing, the aggregate number of Shares that may be issued under the Plan
upon the exercise of Incentive Stock Options shall not be increased for restricted Shares that are forfeited or repurchased. Notwithstanding anything in the Plan or any Award Agreement to the
contrary, Shares attributable to Awards transferred under any Award transfer program shall not be again available for grant under the Plan. The Shares subject to the Plan may be either Shares
reacquired by the Company, including Shares purchased in the open market, or authorized but unissued Shares. 

        (b)   Code Section 162(m) Limit.    Subject to the provisions of Section 15 of the Plan, the aggregate
number of Shares subject to Awards granted under this Plan during any calendar year to any one Awardee shall not exceed 2,000,000, except that in connection with his or her initial service, an Awardee
may be granted Awards covering up to 4,000,000 Shares. Notwithstanding anything to the contrary in the Plan, the limitations set forth in this Section 3(b) shall be subject to adjustment under
Section 15 of the Plan only to the extent that such adjustment will not affect the status of any Award intended to qualify as "performance-based compensation" under Code Section 162(m). 

        4.    Administration of the Plan.    

        (a)   Procedure.

        (i)    Multiple Administrative Bodies.    The Plan shall be
administered by the Board or one or more Committees, including such delegates as may be appointed under paragraph (a)(iv) of this Section 4. 

        (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, Awards to "covered employees" within the meaning of Section 162(m) of the Code or
Employees that the Committee determines may be "covered employees" in the future shall be made by a Committee of two 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 promulgated under the Exchange Act ("Rule 16b-3"), Awards to Officers and Directors shall be made in such a manner to satisfy the requirement for
exemption under Rule 16b-3. 

4

 

        (iv)    Other Administration.    The Board or a Committee may delegate to an authorized Officer or Officers of the
Company the power to approve Awards to persons eligible to receive Awards under the Plan who are not (A) subject to Section 16 of the Exchange Act; or (B) at the time of such
approval, "covered employees" under Section 162(m) of the Code. 

        (v)    Delegation of Authority for the Day-to-Day Administration of the Plan.    Except to
the extent prohibited by Applicable Law, the Administrator may delegate to one or more individuals the day-to-day administration of the Plan and any of the functions assigned
to it in this Plan. Such delegation may be revoked at any time. 

        (b)   Powers of the Administrator.    Subject to the provisions of the Plan and, in the case of a Committee or
delegates acting as the Administrator, subject to the specific duties delegated to such Committee or delegates, the Administrator shall have the authority, in its sole discretion: 

          (i)  to
select the Service Providers of the Company or its Affiliates to whom Awards are to be granted hereunder; 

         (ii)  to
determine the number of shares of Common Stock to be covered by each Award granted hereunder; 

        (iii)  to
determine the type of Award to be granted to the selected Service Provider; 

        (iv)  to
approve the forms of Award Agreements for use under the Plan; 

         (v)  to
determine the terms and conditions, consistent with the terms of the Plan, of any Award granted hereunder. Such terms and conditions include the exercise or purchase
price, the time or times when an Award may be exercised (which may or may not be based on performance criteria), the vesting schedule, any vesting or exercisability acceleration or waiver of
forfeiture restrictions, the acceptable forms of consideration, the term, and any restriction or limitation regarding any Award or the Shares relating thereto, based in each case on such factors as
the Administrator, in its sole discretion, shall determine and may be established at the time an Award is granted or thereafter; 

        (vi)  to
correct administrative errors; 

       (vii)  to
construe and interpret the terms of the Plan (including sub-plans and Plan addenda) and Awards granted pursuant to the Plan; 

      (viii)  to
adopt rules and procedures relating to the operation and administration of the Plan to accommodate the specific requirements of local laws and procedures. Without
limiting the generality of the foregoing, the Administrator is specifically authorized (A) to adopt the rules and procedures regarding the conversion of local currency, withholding procedures,
and handling of stock certificates that vary with local requirements; and (B) to adopt sub-plans and Plan addenda as the Administrator deems desirable, to accommodate foreign laws,
regulations and practice; 

        (ix)  to
prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans and Plan addenda; 

         (x)  to
modify or amend each Award, including the acceleration of vesting, exercisability, or both; provided, however, that any modification or amendment of an Award is
subject to Section 16 of the Plan and may not materially impair any outstanding Award unless agreed to by the Participant; 

        (xi)  to
allow Participants to satisfy withholding tax amounts by electing to have the Company withhold from the Shares to be issued pursuant to an Award that number of
Shares having a Fair Market Value equal to the amount required to be withheld. The Fair Market Value of the Shares to be withheld shall be determined in such manner and on such date that the
Administrator shall 

5

 

determine
or, in the absence of provision otherwise, on the date that the amount of tax to be withheld is to be determined. All elections by a Participant to have Shares withheld for this purpose
shall be made in such form and under such conditions as the Administrator may provide; 

       (xii)  to
authorize conversion or substitution under the Plan of any or all stock options, stock appreciation rights, or other stock awards held by service providers of an
entity acquired by the Company (the "Conversion Awards"). Any conversion or substitution shall be effective as of the close of the merger or acquisition. The Conversion Awards may be Nonstatutory
Stock Options or Incentive Stock Options, as determined by the Administrator, with respect to options granted by the acquired entity. Unless otherwise determined by the Administrator at the time of
conversion or substitution, all Conversion Awards shall have the same terms and conditions as Awards generally granted by the Company under the Plan; 

      (xiii)  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; 

      (xiv)  to
determine whether Awards will be settled in Shares, cash, or in any combination thereof; 

       (xv)  to
determine whether to provide for the right to receive dividends or dividend equivalents; 

      (xvi)  to
establish a program whereby Service Providers designated by the Administrator can reduce compensation otherwise payable in cash in exchange for Awards under the
Plan; 

     (xvii)  to
impose such restrictions, conditions, or limitations as it determines appropriate as to the timing and manner of any resales by a Participant or other subsequent
transfers by the Participant of any Shares issued as a result of or under an Award, including (A) restrictions under an insider trading policy, and (B) restrictions as to the use of a
specified brokerage firm for such resales or other transfers; 

    (xviii)  to
provide, either at the time an Award is granted or by subsequent action, that an Award shall contain as a term thereof, a right, either in tandem with the other
rights under the Award or as an alternative thereto, of the Participant to receive, without payment to the Company, a number of Shares, cash, or a combination of both, the amount of which is
determined by reference to the value of the Award; and 

      (xix)  to
make all other determinations deemed necessary or advisable for administering the Plan and any Award granted hereunder. 

        (c)   Effect of Administrator's Decision.    All decisions, determinations and interpretations by the Administrator
regarding the Plan, any rules and regulations under the Plan and the terms and conditions of any Award granted hereunder, shall be final and binding on all Participants. The Administrator shall
consider such factors as it deems relevant, in its sole and absolute discretion, to making such decisions, determinations and interpretations, including the recommendations or advice of any officer or
other employee of the Company and such attorneys, consultants and accountants as it may select. 

        5.    Eligibility.    Awards may be granted to Service Providers of
the Company or any of its Affiliates. 

        6.    Effective Date and Term of the Plan.    The Plan shall be
effective as of the effective date of the registration statement for the Company's initial public offering, provided that the Company's stockholders have approved the Plan before such date. Unless
terminated pursuant to Section 16, the Plan shall continue in effect until the tenth anniversary of the earlier of (i) the date of the Plan's approval by the Board, or (ii) the
date of the Plan's approval by the Company's stockholders. 

6

 

 

        7.    Term of Award.    The term of each Award shall be determined by
the Administrator and stated in the Award Agreement. In the case of an Option, the term shall be ten years from the Grant Date or such shorter term as may be provided in the Award Agreement. 

        8.    Options.    The Administrator may grant an Option or provide for
the grant of an Option, from time to time in the discretion of the Administrator or automatically upon the occurrence of specified events, including the achievement of performance goals, and for the
satisfaction of an event or condition within the control of the Awardee or within the control of others. 

        (a)   Option Agreement.    Each Option Agreement shall contain provisions regarding (i) the number of Shares
that may be issued upon exercise of the Option; (ii) the type of Option; (iii) the exercise price of the Shares and the means of payment for the Shares; (iv) the term of the
Option; (v) such terms and conditions on the vesting or exercisability of an Option, or both, as may be determined from time to time by the Administrator; (vi) restrictions on the
transfer of the Option and forfeiture provisions; and (vii) such further terms and conditions, in each case not inconsistent with this Plan, as may be determined from time to time by the
Administrator. 

        (b)   Exercise Price.    The per share exercise price for the Shares to be issued pursuant to exercise of an Option
shall be determined by the Administrator, subject to the following: 

          (i)  In
the case of an Incentive Stock Option, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the Grant Date. Notwithstanding
the foregoing, if any Incentive Stock Option is granted to a Ten-Percent Stockholder, then the exercise price shall not be less than 110% of the Fair Market Value of a share of Common
Stock on the Grant Date. 

         (ii)  In
the case of a Nonstatutory Stock Option, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the Grant Date. The per Share
exercise price may also vary according to a predetermined formula; provided, that the exercise price never falls below 100% of the Fair Market Value per Share on the Grant Date. 

        (iii)  Notwithstanding
the foregoing, at the Administrator's discretion, Conversion Awards may be granted in substitution or conversion of options of an acquired entity, with
a per Share exercise price of less than 100% of the Fair Market Value per Share on the date of such substitution or conversion. 

        (c)   Vesting Period and Exercise Dates.    Options granted under this Plan shall vest, be exercisable, or both, at
such times and in such installments during the Option's term as determined by the Administrator. The Administrator shall have the right to make the timing of the ability to exercise any Option granted
under this Plan subject to continued service, the passage of time, or such performance requirements as deemed appropriate by the Administrator. At any time after the grant of an Option, the
Administrator may reduce or eliminate any restrictions surrounding any Participant's right to exercise all or part of the Option. 

        (d)   Form of Consideration.    The Administrator shall determine the acceptable form of consideration for exercising
an Option, including the method of payment, either through the terms of the Option Agreement or at the time of exercise of an Option. The consideration, determined by the Administrator (or pursuant to
authority expressly delegated by the Board, a Committee, or other person), and in the form and amount required by applicable law, shall be actually received before issuing any Shares pursuant to the
Plan; which consideration shall have a value, as determined by the Board, not less than the par value of such Shares. Acceptable forms of consideration may include: 

          (i)  cash;

         (ii)  check
or wire transfer; 

7

 

        (iii)  subject
to any conditions or limitations established by the Administrator, other Shares that have a Fair Market Value on the date of surrender or attestation that does
not exceed the aggregate exercise price of the Shares as to which said Option shall be exercised; 

        (iv)  consideration
received by the Company under a broker-assisted sale and remittance program acceptable to the Administrator to the extent that this procedure would not
violate Section 402 of the Sarbanes-Oxley Act of 2002, as amended; 

         (v)  subject
to any conditions or limitations established by the Administrator, the Company's retention of so many of the Shares that would otherwise have been delivered upon
exercise of the Option as have a Fair Market Value on the exercise date not exceeding the aggregate exercise price of all Shares as to which the Option is being exercised, provided that the Option is
surrendered and cancelled as to such Shares; 

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

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

        9.    Incentive Stock Option Limitations.    

        (a)   Eligibility.    Only employees (as determined in accordance with Section 3401(c) of the Code and the
regulations promulgated thereunder) of the Company or any of its Related Corporations may be granted Incentive Stock Options. 

        (b)   $100,000 Limitation.    Notwithstanding the designation "Incentive Stock Option" in an Option Agreement, if the
aggregate Fair Market Value of the Shares with respect to which Incentive Stock Options are exercisable for the first time by the Awardee during any calendar year (under all plans of the Company and
any of its Related Corporations) exceeds $100,000, then the portion of such Options that exceeds $100,000 shall be treated as Nonstatutory Stock Options. An Incentive Stock Option is considered to be
first exercisable during a calendar year if the Incentive Stock Option will become exercisable at any time during the year, assuming that any condition on the Awardee's ability to exercise the
Incentive Stock Option related to the performance of services is satisfied. If the Awardee's ability to exercise the Incentive Stock Option in the year is subject to an acceleration provision, then
the Incentive Stock Option is considered first exercisable in the calendar year in which the acceleration provision is triggered. For purposes of this Section 9(b), Incentive Stock Options
shall be taken into account in the order in which they were granted. However, because an acceleration provision is not taken into account before its triggering, an Incentive Stock Option that becomes
exercisable for the first time during a calendar year by operation of such provision does not affect the application of the $100,000 limitation with respect to any Incentive Stock Option (or portion
thereof) exercised before such acceleration. The Fair Market Value of the Shares shall be determined as of the Grant Date. 

        (c)   Leave of Absence.    For purposes of Incentive Stock Options, no leave of absence may exceed three months,
unless the right to reemployment upon expiration of such leave is provided by statute or contract. If the period of leave exceeds three months and the Awardee's right to reemployment is not provided
by statute or contract, the Awardee's employment with the Company shall be deemed to terminate on the first day immediately following such three-month period, and any Incentive Stock Option granted to
the Awardee shall cease to be treated as an Incentive Stock Option and shall terminate upon the expiration of the three-month period starting on the date the employment relationship is deemed
terminated. 

        (d)   Transferability.    The Option Agreement must provide that an Incentive Stock Option cannot be transferable by
the Awardee otherwise than by will or the laws of descent and distribution, and, during the lifetime of such Awardee, must not be exercisable by any other person. Notwithstanding the foregoing, the
Administrator, in its sole discretion, may allow the Awardee to transfer his or her 

8

 

Incentive
Stock Option to a trust where under Section 671 of the Code and other Applicable Law, the Awardee is considered the sole beneficial owner of the Option while it is held in the trust.
If the terms of an Incentive Stock Option are amended to permit transferability, the Option will be treated for tax purposes as a Nonstatutory Stock Option. 

        (e)   Exercise Price.    The per Share exercise price of an Incentive Stock Option shall be determined by the
Administrator in accordance with Section 8(b)(i) of the Plan. 

        (f)    Ten-Percent Stockholder.    If any Incentive Stock Option is granted to a Ten-Percent
Stockholder, then the Option term shall not exceed five years measured from the date of grant of such Option. 

        (g)   Other Terms.    Option Agreements evidencing Incentive Stock Options shall contain such other terms and
conditions as may be necessary to qualify as Incentive Stock Options, to the extent determined desirable by the Administrator, under the applicable provisions of Section 422 of the Code. 

        10.    Exercise of Option.    

        (a)   Procedure for Exercise; Rights as a Stockholder.

          (i)  Any
Option granted hereunder shall 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 respective Award Agreement. 

         (ii)  An
Option shall be deemed exercised when the Company receives (A) written or electronic notice of exercise (in accordance with the Award Agreement) from the
person entitled to exercise the Option; (B) full payment for the Shares with respect to which the related Option is exercised; and (C) with respect to Nonstatutory Stock Options, payment
of all applicable withholding taxes. 

        (iii)  Shares
issued upon exercise of an Option shall be issued in the name of the Participant or, if requested by the Participant, in the name of the Participant and his or
her spouse. Unless provided otherwise by the Administrator or pursuant to this Plan, 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 shall exist with respect to the Shares subject to an Option, notwithstanding the
exercise of the Option. 

        (iv)  The
Company shall issue (or cause to be issued) such Shares as soon as administratively practicable after the Option is exercised. An Option may not be exercised for a
fraction of a Share. 

        (b)   Effect of Termination of Service on Options.

        (i)    Generally.    Unless otherwise provided for by the Administrator, if a Participant ceases to be a Service
Provider, other than upon the Participant's death or Disability, the Participant may exercise his or her Option within such period as is specified in the Award Agreement to the extent that the Option
is vested on the Termination Date (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 vested portion of the Option will remain exercisable for three months following the Participant's Termination Date. Unless otherwise provided by the Administrator, if on the Termination Date the
Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will automatically revert to the Plan. If after the Termination of Service the
Participant does not exercise his or her Option within the time specified by the Administrator, the Option will automatically terminate, and the Shares covered by such Option will revert to the Plan. 

9

 

        (ii)    Disability of Awardee.    Unless otherwise provided for by the Administrator, 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 as is specified in the Award Agreement to the extent the Option is
vested on the Termination Date (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 months following the Participant's Termination Date. Unless otherwise provided by the Administrator, if at the time of Disability the Participant is not
vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will automatically 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 automatically revert to the Plan. 

        (iii)    Death of Awardee.    Unless otherwise provided for by the Administrator, if a Participant dies while a
Service Provider, the Option may be exercised following the Participant's death within such period 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 before the 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 or persons 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 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 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. 

        11.    Stock Awards.    

        (a)   Stock Award Agreement.    Each Stock Award Agreement shall contain provisions regarding (i) the number
of Shares subject to such Stock Award or a formula for determining such number; (ii) the purchase price, if any, of the Shares, and the means of payment for the Shares; (iii) the
performance criteria, if any, and level of achievement versus these criteria that shall determine the number of Shares granted, issued, retained, or vested, as applicable; (iv) such terms and
conditions on the grant, issuance, vesting, or forfeiture of the Shares, as applicable, as may be determined from time to time by the Administrator; (v) restrictions on the transferability of
the Stock Award; and (vi) such further terms and conditions in each case not inconsistent with this Plan as may be determined from time to time by the Administrator. 

        (b)   Restrictions and Performance Criteria.    The grant, issuance, retention, and vesting of each Stock Award may
be subject to such performance criteria and level of achievement versus these criteria as the Administrator shall determine, which criteria may be based on financial performance, personal performance
evaluations, or completion of service by the Awardee. 

        Notwithstanding
anything to the contrary herein, the performance criteria for any Stock Award that is intended to satisfy the requirements for "performance-based compensation" under
Section 162(m) of the Code shall be established by the Administrator based on one or more Qualifying Performance Criteria selected by the Administrator and specified in writing. 

        (c)   Forfeiture.    Unless otherwise provided for by the Administrator, upon the Awardee's Termination of Service,
the unvested Stock Award and the Shares subject thereto shall be forfeited, provided that to the extent that the Participant purchased any Shares pursuant to such Stock Award, 

10

 

the
Company shall have a right to repurchase the unvested portion of such Shares at the original price paid by the Participant. 

        (d)   Rights as a Stockholder.    Unless otherwise provided by the Administrator, the Participant shall have the
rights equivalent to those of a stockholder and shall be a stockholder only after 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) to the Participant. Unless otherwise provided by the Administrator, a Participant holding Stock Units shall be entitled to receive dividend payments as if he or she were an
actual stockholder. 

        12.    Stock Appreciation Rights.    Subject to the terms and
conditions of the Plan, a SAR may be granted to a Service Provider at any time and from time to time as determined by the Administrator in its sole discretion. 

        (a)   Number of SARs.    The Administrator shall have complete discretion to determine the number of SARs granted to
any Service Provider. 

        (b)   Exercise Price and Other Terms.    The per SAR exercise price shall be no less than 100% of the Fair Market
Value per Share on the Grant Date. The Administrator, subject to the provisions of the Plan, shall have complete discretion to determine the other terms and conditions of SARs granted under the Plan. 

        (c)   Exercise of SARs.    SARs shall be exercisable on such terms and conditions as the Administrator, in its sole
discretion, shall determine. 

        (d)   SAR Agreement.    Each SAR grant shall be evidenced by a SAR Agreement that will specify the exercise price,
the term of the SAR, the conditions of exercise, and such other terms and conditions as the Administrator, in its sole discretion, shall determine. 

        (e)   Expiration of SARs.    A SAR granted under the Plan shall expire upon the date determined by the Administrator,
in its sole discretion, and set forth in the SAR Agreement. Notwithstanding the foregoing, the rules of Section 10(b) will also apply to SARs. 

        (f)    Payment of SAR Amount.    Upon exercise of a SAR, the Participant shall be entitled to receive a payment from
the Company in an amount equal to the difference between the Fair Market Value of a Share on the date of exercise over the exercise price of the SAR. This amount shall be paid in cash, Shares of
equivalent value, or a combination of both, as the Administrator shall determine. 

        13.    Cash Awards.    Each Cash Award will confer upon the
Participant the opportunity to earn a future payment tied to the level of achievement with respect to one or more performance criteria established by the Administrator for a performance period. 

        (a)   Cash Award.    Each Cash Award shall contain provisions regarding (i) the performance goal or goals and
maximum amount payable to the Participant as a Cash Award; (ii) the performance criteria and level of achievement versus these criteria that shall determine the amount of such payment;
(iii) the period as to which performance shall be measured for establishing the amount of any payment; (iv) the timing of any payment earned by virtue of performance;
(v) restrictions on the alienation or transfer of the Cash Award before actual payment; (vi) forfeiture provisions; and (vii) such further terms and conditions, in each case not
inconsistent with the Plan, as may be determined from time to time by the Administrator. The maximum amount payable as a Cash Award that is settled for cash may be a multiple of the target amount
payable, but the maximum amount payable pursuant to that portion of a Cash Award granted under this Plan for any fiscal year to any Awardee that is intended to satisfy the requirements for
"performance-based compensation" under Section 162(m) of the Code shall not exceed $2.5 million. 

11

 

        (b)   Performance Criteria.    The Administrator shall establish the performance criteria and level of achievement
versus these criteria that shall determine the target and the minimum and maximum amount payable under a Cash Award, which criteria may be based on financial performance or personal performance
evaluations or both. The Administrator may specify the percentage of the target Cash Award that is intended to satisfy the requirements for "performance-based compensation" under Section 162(m)
of the Code. Notwithstanding anything to the contrary herein, the performance criteria for any portion of a Cash Award that is intended to satisfy the requirements for "performance-based compensation"
under Section 162(m) of the Code shall be a measure established by the Administrator based on one or more Qualifying Performance Criteria selected by the Administrator and specified in writing. 

        (c)   Timing and Form of Payment.    The Administrator shall determine the timing of payment of any Cash Award. The
Administrator may specify the form of payment of Cash Awards, which may be cash or other property, or may provide for an Awardee to have the option for his or her Cash Award, or such portion thereof
as the Administrator may specify, to be paid in whole or in part in cash or other property. 

        (d)   Termination of Service.    The Administrator shall have the discretion to determine the effect of a Termination
of Service on any Cash Award due to (i) disability, (ii) retirement, (iii) death, (iv) participation in a voluntary severance program, or (v) participation in a work
force restructuring. 

        14.    Other Provisions Applicable to 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 and distribution, and may be exercised, during the lifetime of the
Participant, only by the Participant. If the Administrator makes an Award transferable, either at the time of grant or thereafter, such Award shall contain such additional terms and conditions as the
Administrator deems appropriate, and any transferee shall be bound by such terms upon acceptance of such transfer. 

        (b)   Qualifying Performance Criteria.    For purposes of this Plan, the term "Qualifying Performance Criteria" shall
mean any one or more of the following performance criteria, applied to either the Company as a whole or to a business unit, Affiliate, Related Corporation, or business segment, either individually,
alternatively, or in any combination, and measured either annually or cumulatively over a period of years, on an absolute basis or relative to a preestablished target, to previous years' results or to
a designated comparison group, in each case as specified in the Award by the Committee: (i) cash flow, (ii) earnings (including gross margin, earnings before interest and taxes, earnings
before taxes, and net earnings), (iii) earnings per share, (iv) growth in earnings or earnings per share, (v) stock price, (vi) return on equity or average stockholders'
equity, (vii) total stockholder return, (viii) return on capital, (ix) return on assets or net assets, (x) return on investment, (xi) revenue, (xii) income or
net income, (xiii) operating income or net operating income, (xiv) operating profit or net operating profit, (xv) operating margin, (xvi) return on operating revenue,
(xvii) market share, (xviii) contract awards or backlog, (xix) overhead or other expense reduction, (xx) growth in stockholder value relative to the moving average of the
S&P 500 Index or a peer group index, (xxi) credit rating, (xxii) strategic plan development and implementation, (xxiii) improvement in workforce diversity,
(xxiv) EBITDA, (xxv) annual volume in gasoline gallon equivalents, (xxvi) total sales in U.S. dollars, and (xxvii) any other similar criteria. 

        (c)   Certification.    Before payment of any compensation under an Award intended to qualify as "performance-based
compensation" under Section 162(m) of the Code, the Committee shall certify the extent to which any Qualifying Performance Criteria and any other material terms under such Award have been
satisfied (other than in cases where such relate solely to the increase in the value of the Common Stock). 

12

 

        (d)   Discretionary Adjustments Pursuant to Section 162(m).    Notwithstanding satisfaction or completion of
any Qualifying Performance Criteria, to the extent specified at the time of grant of an Award to "covered employees" within the meaning of Section 162(m) of the Code, the number of Shares,
Options or other benefits granted, issued, retained, or vested under an Award on account of satisfaction of such Qualifying Performance Criteria may be reduced by the Committee on the basis of such
further considerations as the Committee in its sole discretion shall determine. 

        (e)   Section 409A.    Notwithstanding anything in the Plan to the contrary, it is the Company's intent that
all Awards granted under this Plan comply with Section 409A of the Code, and each Award shall be interpreted in a manner consistent with that intention. 

        15.    Adjustments upon Changes in Capitalization, Dissolution, Merger or Asset
Sale.    

        (a)   Changes in Capitalization.

          (i)  The
limitations set forth in Section 3, the number and kind of Shares covered by each outstanding Award, and the price per Share (but not the total price)
subject to each outstanding Award shall be proportionally adjusted to prevent dilution or enlargement of rights under the Plan for any change in the outstanding Common Stock subject to the Plan, or
subject to any Award, resulting from any stock splits, combination or exchange of Shares, consolidation, spin-off or recapitalization of Shares or any capital adjustment or transaction
similar to the foregoing or any distribution to holders of Common Stock other than regular cash dividends. 

         (ii)  The
Administrator shall make such adjustment in such manner as it may deem equitable and appropriate, subject to compliance with Applicable Laws. Any determination,
substitution or adjustment made by the Administrator under this Section shall be conclusive and binding on all persons. The conversion of any convertible securities of the Company shall not be treated
as a transaction requiring any substitution or adjustment under this Section. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible
into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of Shares subject to an Award. 

        (b)   Dissolution or Liquidation.    In the event of the proposed dissolution or liquidation of the Company, the
Administrator shall notify each Participant as soon as practicable before the effective date of such proposed transaction. The Administrator in its discretion may provide for an Option to be fully
vested and exercisable until ten days before such proposed transaction. In addition, the Administrator may provide that any restrictions on any Award shall lapse before the proposed transaction,
provided the proposed dissolution or liquidation takes place at the time and in the manner contemplated. To the extent it has not been previously exercised, an Award will terminate immediately before
the consummation of such proposed transaction. 

        (c)   Change in Control.    If there is a Change in Control of the Company, as determined by the Board or a
Committee, then unless otherwise expressly provided in the Award Agreement, all Options and SARs granted to Employees shall fully vest, and any restrictions on all Stock Awards and Cash Awards granted
to Employees shall lapse, as of the effective date of the Change in Control. In any Award in which the Board has determined not to permit full vesting upon a Change in Control, the Board or Committee
or Board of Directors of any surviving entity or acquiring entity may, in its discretion, in the Award Agreement (i) provide for the assumption, continuation or substitution (including an award
to acquire substantially the same type of consideration paid to the stockholders in the transaction in which the Change in Control occurs) of, or adjustment to, all or any part of the Awards;
(ii) accelerate the vesting of all or any part of the Options and SARs and terminate any restrictions on all or any part of the Stock Awards or Cash Awards; (iii) provide for the
cancellation of all or any part of the Awards for a cash payment to the Participants; or (iv) provide for the cancellation of all or any part of the Awards as of the closing of the Change in
Control; provided, that the 

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Participants
are notified that they must exercise or redeem their Awards (including, at the discretion of the Board or Committee, any unvested portion of such Award) at or before the closing of the
Change in Control. 

        16.    Amendment and Termination of the Plan.    

        (a)   Amendment and Termination.    The Administrator may amend, alter, or discontinue the Plan or any Award
Agreement, but any such amendment shall be subject to approval of the stockholders of the Company in the manner and to the extent required by Applicable Law. 

        (b)   Effect of Amendment or Termination.    No amendment, suspension, or termination of the Plan shall materially
impair the rights of any Award, unless agreed otherwise between the Participant and the Administrator. Termination of the Plan shall not affect the Administrator's ability to exercise the powers
granted to it hereunder with respect to Awards granted under the Plan before the date of such termination. 

        (c)   Effect of the Plan on Other Arrangements.    Neither the adoption of the Plan by the Board or a Committee nor
the submission of the Plan to the stockholders of the Company for approval shall be construed as creating any limitations on the power of the Board or any Committee to adopt such other incentive
arrangements as it or they may deem desirable, including the granting of restricted stock or stock options otherwise than under the Plan, and such arrangements may be either generally applicable or
applicable only in specific cases. 

        17.    Designation of Beneficiary.    

        (a)   An
Awardee may file a written designation of a beneficiary who is to receive the Awardee's rights pursuant to Awardee's Award or the Awardee may include his or
her Awards in an omnibus beneficiary designation for all rights under the Awardee's Awards and all benefits under the Plan. To the extent that Awardee has completed a designation of beneficiary such
beneficiary designation shall remain in effect with respect to any Award hereunder until changed by the Awardee to the extent enforceable under Applicable Law. 

        (b)   The
Awardee may change such designation of beneficiary at any time by written notice. If an Awardee dies and no beneficiary is validly designated under the Plan who is
living at the time of such Awardee's death, the Company shall allow the executor or administrator of the estate of the Awardee to receive the Awardee's rights under the Awardee's Awards and all
benefits under the Plan, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may allow the spouse or one or more dependents or
relatives of the Awardee to receive the Awardee's rights under the Awardee's Awards and all benefits under the Plan to the extent permissible under Applicable Law. 

        18.    No Right to Awards or to Service.    No person shall have any
claim or right to be granted an Award and the grant of any Award shall not be construed as giving an Awardee the right to continue in the service of the Company or its Affiliates. Further, the Company
and its Affiliates expressly reserve the right, at any time, to dismiss any Service Provider or Awardee at any time without liability or any claim under the Plan, except as provided herein or in any
Award Agreement entered into hereunder. 

        19.    Preemptive Rights.    No Shares will be issued under the Plan
in violation of any preemptive rights held by any stockholder of the Company. 

        20.    Legal Compliance.    No Share will be issued pursuant to an
Award under the Plan unless the issuance and delivery of such Share, as well as the exercise of such Award, if applicable, will comply with Applicable Laws. Issuance of Shares under the Plan shall be
subject to the approval of counsel for the Company with respect to such compliance. Notwithstanding anything in the Plan to the contrary, the Plan is intended to comply with the requirements of
Section 409A of the Code and shall be interpreted in a manner consistent with that intention. 

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        21.    Inability to Obtain Authority.    To the extent the Company is
unable to or the Administrator deems that it is not feasible 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, the Company shall be relieved of any liability with respect to the failure to issue or sell such Shares as to which such requisite authority shall not
have been obtained. 

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

        23.    Notice.    Any written notice to the Company required by any
provisions of this Plan shall be addressed to the Secretary of the Company and shall be effective when received. 

        24.    Governing Law; Interpretation of Plan and Awards.    

        (a)   This
Plan and all determinations made and actions taken pursuant hereto shall be governed by the substantive laws, but not the choice of law rules, of the State of
Delaware. 

        (b)   If
any provision of the Plan or any Award granted under the Plan is declared to be illegal, invalid, or otherwise unenforceable by a court of competent jurisdiction,
such provision shall be reformed, if possible, to the extent necessary to render it legal, valid, and enforceable, or otherwise deleted, and the remainder of the terms of the Plan and Award shall not
be affected except to the extent necessary to reform or delete such illegal, invalid, or unenforceable provision. 

        (c)   The
headings preceding the text of the sections hereof are inserted solely for convenience of reference, and shall not constitute a part of the Plan, nor shall they
affect its meaning, construction or effect. 

        (d)   The
terms of the Plan and any Award shall inure to the benefit of and be binding upon the parties hereto and their respective permitted heirs, beneficiaries, successors,
and assigns. 

        (e)   All
questions arising under the Plan or under any Award shall be decided by the Administrator in its total and absolute discretion. If the Participant believes that a
decision by the Administrator with respect to such person was arbitrary or capricious, the Participant may request arbitration with respect to such decision. The review by the arbitrator shall be
limited to determining whether the Administrator's decision was arbitrary or capricious. This arbitration shall be the sole and exclusive review permitted of the Administrator's decision, and the
Awardee shall as a condition to the receipt of an Award be deemed to waive explicitly any right to judicial review. 

        25.    Limitation on Liability.    The Company and any Affiliate or
Related Corporation that is in existence or hereafter comes into existence shall not be liable to a Participant, an Employee, an Awardee, or any other persons as to: 

        (a)   The Non-Issuance of Shares.    The non-issuance or sale of Shares as to which the
Company has been unable to obtain from any regulatory body having jurisdiction the authority deemed by the Company's counsel to be necessary to the lawful issuance and sale of any shares hereunder;
and 

        (b)   Tax Consequences.    Any tax consequence expected, but not realized, by any Participant, Employee, Awardee or
other person due to the receipt, exercise or settlement of any Option or other Award granted hereunder. 

        26.    Unfunded Plan.    Insofar as it provides for Awards, the Plan
shall be unfunded. Although bookkeeping accounts may be established with respect to Awardees who are granted Stock Awards under this Plan, any such accounts will be used merely as a bookkeeping
convenience. The Company shall not be required to segregate any assets that may at any time be represented by Awards, nor shall this Plan be construed as providing for such segregation, nor shall the
Company or the Administrator be deemed a trustee of stock or cash to be awarded under the Plan. Any liability of the Company to any Participant with respect to an Award shall be based solely upon any
contractual obligations that 

15

 

may
be created by the Plan; no such obligation of the Company shall be deemed secured by any pledge or other encumbrance on any property of the Company. Neither the Company nor the Administrator shall
be required to give any security or bond for the performance of any obligation that may be created by this Plan. 

[Signature
Page to Follow] 

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        IN
WITNESS WHEREOF, the Company, by its duly authorized officer, has executed this Plan, effective as of                        ,
20    . 

 

					
	 	 	CLEAN ENERGY FUELS CORP.
	

 	
 	
By:	
 	
 

 
	 	 	Name:	 	  

 
	 	 	Its:	 	  

 

 

 17

QuickLinks

Exhibit 10.63

CLEAN ENERGY FUELS CORP. AMENDED AND RESTATED 2006 EQUITY INCENTIVE PLAN

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