Document:

Employment agreement

 EXHIBIT 10.1 
  
 EMPLOYMENT AGREEMENT 
  
 This EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of August 15, 2003, by and between ROXIO, INC., a
Delaware corporation with its principal offices at 455 El Camino Real, Santa Clara, California 95050 (“Roxio”), and WILLIAM CHRISTOPHER GOROG, an individual residing at 11434 Bellagio Road, Los Angeles, California 90049 (the
“Executive”). 
  
 1. Employment. Roxio
agrees to employ Executive and Executive agrees to be employed by Roxio upon the terms and conditions set forth in this Agreement. 
  
 2. Duties. Executive is employed by Roxio to render services to Roxio and to Napster LLC, (herein, “Napster”) in the position of
Chairman and CEO of each of Roxio and Napster (herein, collectively “Company”). Executive agrees to perform such duties, and such other duties reasonable and consistent with such office as may be assigned to Executive by
Company’s Board of Directors from time to time. The principal places where Executive shall render his services hereunder shall be at Company’s offices in Santa Clara and Los Angeles, California, and New York, New York, as well as in his
home office, as he shall reasonably determine from time to time is in the best interests of Company. In no case shall the Executive be required to relocate his residence from Los Angeles, California, nor to relocate his offices outside any of the
cities of Santa Clara, New York or Los Angeles without his consent. Executive will devote his full time and efforts to the performance of Executive’s duties and responsibilities under this Agreement and to the business and affairs of Company,
its subsidiaries and affiliates, in general, and Executive shall use his reasonable efforts to promote the interests thereof. Executive may engage in personal, charitable, professional and investment activities to the extent such activities do not
materially conflict or interfere with Executive’s duties and obligations under this Agreement or Executive’s ability to perform his duties and responsibilities under this Agreement. During the Term, Executive shall not serve on the Board
of Directors of any other business entity without the prior approval of the Board of Directors. The Board of Directors is aware of and approves Executive’s service on the Board of Directors of the following entities: House of Blues and Critical
Path, Inc. provided that Executive’s future activities on such Boards do not materially conflict or interfere with the performance of his duties for the Company. 
  
 3. Term of Employment. The initial term of Executive’s employment hereunder shall commence on August 15, 2003
(the “Commencement Date”) and, unless terminated sooner as provided in Paragraph 7 below, shall continue through August 14, 2008 (“Initial Term”). Thereafter Executive’s employment hereunder shall automatically
continue year to year for successive terms of one year each ending on the next August 14th (each such year being referred to herein as an “Extended Year”), unless at least ninety (90) days prior to the end of the Initial Term or the
then current Extended Year, as the case may be, either Executive or Roxio delivers to the other written notice of non-renewal (“Non-Renewal Notice”), in which event Executive’s employment hereunder shall terminate as of the end
of the Initial Term or the then current Extended Year, as applicable. The date on which the term of Executive’s employment hereunder expires or is terminated (either by reason of a Non-Renewal Notice or otherwise) pursuant to the provisions of
this Agreement shall be referred to herein as the “Termination 

  

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Date.” The capitalized word “Term” as used herein shall mean the period beginning on the Commencement Date and ending on the
Termination Date. 
  
 4. Compensation. 
  
 (a) Salary. For all services rendered by Executive hereunder, Roxio
agrees to pay Executive the sum of Six Hundred Twenty Five Thousand Dollars ($625,000) per annum (“Salary”), payable in accordance with Roxio’s then applicable payroll practices applicable to similarly-situated executives
generally. The amount of the annual Salary shall be subject to annual review and upward adjustment at the first quarter board of directors meeting each fiscal year of the Term; provided, however, that the amount of the annual Salary may not be
reduced during the Term. Any adjustment to the annual Salary shall be in the sole discretion of Roxio. 
  
 (b) Bonus Compensation; Stock Option Grants. In addition to the Salary, Executive will be eligible to participate in Company’s annual bonus
program and any other bonus plan adopted during the Term, and will be eligible for annual stock option grants. The Company shall pay to Executive a bonus of $500,000 promptly after execution of this Agreement. Thereafter, the amount, if any, of
Executive’s bonus(es) and stock option grant(s) for any particular year will be determined by Roxio’s compensation committee (the “Compensation Committee”) and will be dependent on Executive’s performance and that of
the Company. 
  
 (c) Initial Stock Option Grant. On August
15, 2003, the Compensation Committee granted Executive options to purchase up to 300,000 shares of Roxio common stock (i.e., NASDAQ: “ROXI”) in accordance with the Roxio 2003 Stock Plan (“RSOP”), subject to
shareholder approval of the RSOP. Such options will have an exercise price per share equal to $7.47 per share, the last closing sales price of a share of Roxio common stock on the NASDAQ National Market available as of the time of grant. Such
options will have a maximum term of ten years, will vest as to 25% of the subject shares on August 15, 2004, and will vest as to an additional 6.25% of the subject shares on November 15, 2004, and on each three month anniversary of such date
until the options are fully vested, and will, except as provided herein, otherwise be subject to earlier termination and the other terms set forth in the RSOP and the written stock option agreement to evidence such option (such agreement to be in
the form customarily used by Roxio for employee stock option grants under the RSOP). 
  
 (d) Change in Control Gross-Up. Executive shall be entitled to the excise tax protections set forth in Exhibit A attached hereto. 
  
 5. Benefits. Executive shall be entitled to four (4) weeks paid vacation per each calendar year during the Term.
Executive shall also be entitled to participate in such life, disability, medical insurance and pension and retirement plans (and any other plans and benefits not otherwise referred to in this Agreement) as Company may have or establish from time to
time applicable to other Company executives on terms no less favorable than the terms applicable to such executives and in which Executive would be entitled to participate pursuant to the terms thereof. In addition, Roxio shall directly pay for or
reimburse Executive for up to a total aggregate amount of $15,000 per year in order for Executive to purchase supplemental life and/or disability insurance. 
  

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 6. Business Expenses; Etc. During the Term, all of Executive’s reasonable travel and other
expenses incurred in the performance of Executive’s duties for the Company will be paid for or reimbursed by Roxio. When traveling by air, Executive will exercise his judgment regarding when economy, business class or first class air travel is
justified. Roxio will pay or reimburse Executive for reasonable expenses relating to airline clubs, and to his participation in professional organizations (including, without limitation, the Young Presidents Organization or any successor
organizations), provided, however, that Executive may not exceed $20,000 per year in such expenses without prior approval of the Compensation Committee. Executive shall be entitled to a car allowance of $1,500 per month plus car insurance, an annual
Company-paid physical examination, a health club subsidy and financial planning assistance (the health club subsidy and financial planning assistance not to exceed $7,500 per year in the aggregate on a gross basis), and such other perquisites not
otherwise provided for in this Agreement (if any) as are accorded generally to other Company executives. 
  
 7. Termination of Employment. The employment of Executive under this Agreement shall be terminated prior to the end of the Initial Term or prior to
the end of an Extended Year, as the case may be, under the following circumstances: 
  
 (a) Termination by Reason of Death of Executive. Upon the death of Executive, the employment of Executive hereunder shall automatically terminate on the date of Executive’s death. 
  
 (b) Termination by Reason of Disability of Executive. In the event
Executive suffers a disability, due to illness or injury, such that Executive is unable to perform the essential functions of his position, even with a reasonable accommodation, for a period in excess of six (6) consecutive months
(“Disability”), Roxio reserves the right to terminate Executive’s employment by giving Executive written notice of termination (the “Disability Notice”) if Executive remains Disabled at the time such Disability
Notice is given. If Executive disputes a Disability termination, Roxio may require that Executive be evaluated, at Roxio’s expense, by an independent physician to be selected by Roxio. In the event that Executive’s physician and
Roxio’s physician report contrary findings as to the nature and duration of the Disability, Roxio may require an additional evaluation, at Roxio’s expense, by a second independent physician of Roxio’s choice. At such time that the
second independent physician’s evaluation of Executive is completed, Roxio will use the findings reported by two of the three physicians to determine the nature and duration of the Disability and its resulting effect on the continuation or
termination of Executive’s employment. 
  
 (c) Termination
for Cause. Roxio shall have the right to terminate Executive’s employment hereunder for “Cause” if Cause as defined below exists and at least 2/3 of the members of the Board of Directors of Company make the good faith
determination that termination is appropriate. For purposes of this Agreement, the term “Cause” shall be limited to (i) conviction of, or a plea of nolo contendre to, a felony or crime involving moral turpitude; (ii) gross negligence in
the performance of Executive’s duties that has injured the reputation or business of the Company; (iii) willful misconduct by Executive with respect to the Company’s business that has injured the reputation or business of the Company.

  

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 (d) Termination by Executive for Good Reason. Executive shall have the right to terminate his
employment under this Agreement for “Good Reason” upon thirty (30) days’ written notice to the Company. For the purposes of this Agreement, the term “Good Reason” means the good faith determination by the Executive
that any one or more of the following has occurred: (i) without the express, written consent of Executive, a material diminution of Executive’s duties, titles, authority, or responsibilities; (ii) without the express, written consent of
Executive, the Company requiring Executive to report to anyone other than the Board of Directors; (iii) any material breach by the Company of this Agreement, including, but not limited to, failure by Company to comply with any of the provisions of
Paragraphs 4 and/or 5, other than insubstantial and inadvertent failures to comply, remedied promptly by Company after receipt of notice thereof from Executive; (iv) without Executive’s consent, any requirement by Company that Executive be
based at any office or location other than an office or location located in the greater Santa Clara, California, New York, New York, or Los Angeles, California area (except for travel reasonably required for the performance of Executive’s
duties), or (v) any proposed termination by the Company of Executive’s employment hereunder other than as permitted by this Agreement. 
  
 (e) Termination by the Company Other than For Death, Disability, or Cause. The Company may terminate Executive’s employment at any time for
any reason other than those specified in this Paragraph 7 hereof or for no reason whatsoever, effective thirty (30) days after written notice is given to Executive of such termination. 
  
 (f) Obligations of Company upon Termination. 
  
 (i) In General. Except as otherwise expressly provided in this Agreement, all compensation otherwise payable to
Executive under this Agreement shall cease to accrue upon termination of Executive’s employment and Executive’s entitlements under applicable plans and programs of the Company following termination of Executive’s employment will be
determined under the terms of those plans and programs. Upon any termination of Executive’s employment, Roxio shall pay to Executive, within thirty (30) days after the Termination Date: (i) any accrued and unpaid Salary and bonus which has been
earned by Executive under this Agreement prior to the Termination Date, (ii) a per diem amount based upon such Salary for any accrued vacation days not previously taken by Executive prior to the Termination Date, and (iii) reimbursement for expenses
incurred through the Termination Date in accordance with the provisions of Paragraph 6 of this Agreement (the sum of the amounts described in clauses (i), (ii), and (iii) shall be hereinafter referred to as the “Accrued Obligations”).

  
 (ii) Death. If Executive’s employment is
terminated by reason of Executive’s death during the Term, Executive’s heirs shall be entitled to the following: (1) payment to Executive’s estate of the Accrued Obligations set forth in 7(f)(i) above; (2) payment to Executive’s
estate or beneficiary, as applicable, any amounts due pursuant to the terms of any applicable welfare benefit plans, including but not limited to any life insurance proceeds; (3) Reimbursement to Executive’s dependents for a period of eighteen
(18) months following Executive’s death of any COBRA premiums paid by Executive’s dependents to continue medical and dental insurance coverage under COBRA; and (4) on the Termination Date by reason of Executive’s death,
Executive’s Roxio and Napster unvested stock options that are outstanding 

  

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immediately prior to Executive’s death, if any, shall become fully vested and such options, together with any previously vested stock options granted by
Roxio and Napster that are then outstanding, shall be exercisable by Executive’s heirs for one (1) year thereafter (subject to earlier termination upon the expiration of the maximum ten-year term of such options and further subject to earlier
termination upon a dissolution, liquidation, change of control or similar event in accordance with Section 12 of the RSOP or similar provisions of the particular option plan under which such options were granted). 
  
 (iii) Disability. If Executive’s employment is terminated by
reason of Executive’s Disability during the Term, Executive shall be entitled to receive, after the date of receipt by Executive of the Disability Notice: (1) payment of the Accrued Obligations pursuant to 7(f)(i) above, (2) the maximum
disability benefits then provided by Company to disabled executives and/or their families, (3) to the extent Executive elects to continue medical and dental insurance coverage under COBRA, reimbursement of the COBRA premium for such continuation
coverage for a period of eighteen (18) months following the Termination Date; and (4) on the Termination Date by reason of Executive’s Disability, Executive’s Roxio and Napster unvested stock options that are outstanding immediately prior
to the Termination Date, if any, shall become fully vested and such options, together with any previously vested stock options granted by Roxio and Napster that are then outstanding, shall be exercisable by Executive, or Executive’s heirs as
the case may be, for one (1) year thereafter (subject to earlier termination upon the expiration of the maximum ten-year term of such options and further subject to earlier termination upon a dissolution, liquidation, change of control or similar
event in accordance with Section 12 of the RSOP or similar provisions of the particular option plan under which such options were granted). 
  
 (iv) Other than For Death, Disability, or Cause. If Executive’s employment with the Company is terminated by Roxio pursuant to Paragraph 7(e)
during the Term, then Executive shall be entitled to the following: (1) payment to Executive of the Accrued Obligations provided for in Paragraph 7(f)(i) above; (2) within thirty (30) days after the Termination Date, payment to Executive of an
amount equal to Executive’s Salary which would otherwise be payable from the Termination Date through the end of the Initial Term, or Extended Term as the case may be, provided, however, that such payment may not be more than 300% of
Executive’s then-applicable Salary or less than 165% of Executive’s then-applicable Salary; (3) to the extent Executive elects to continue medical and dental insurance coverage under COBRA, reimbursement of the COBRA premium for such
continuation coverage for a period of eighteen (18) months following the Termination Date; and (4) on the Termination Date, all of Executive’s Roxio and Napster unvested stock options that are outstanding immediately prior to the Termination
Date, if any, shall become fully vested and such options, together with any previously vested stock options granted by Roxio and Napster that are then outstanding, shall be exercisable by Executive, or Executive’s heirs as the case may be, for
the full term of such options (subject to earlier termination upon the expiration of the maximum ten-year term of such options and further subject to earlier termination upon a dissolution, liquidation, change of control or similar event in
accordance with Section 12 of the RSOP or similar provisions of the particular option plan under which such options were granted). 
  

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 Notwithstanding the foregoing, nothing in this Paragraph 7 is intended to supercede Paragraph 8 below
that provides for the automatic acceleration of Executive’s options upon a Change of Control (defined below). 
  
 (v) Good Reason. For all purposes under this Agreement, a termination for Good Reason by Executive shall be treated as a termination without cause
by the Company and Executive shall be entitled to the payments and benefits set forth in paragraph 7(f)(iv) above, including but not limited to the vesting of outstanding options. 
  
 (vi) Non-Renewal. In the event Roxio decides not to renew or extend this Agreement beyond the Initial Term for
reasons other than failure to reach agreement on the terms for such renewal or extension, Executive will be entitled to receive a Salary at the $625,000 per annum rate as provided in Paragraph 4(a) hereof for a period of nine (9) months after the
termination of the Initial Term, payable in accordance with the payment schedule set forth in Paragraph 4(a). 
  
 8. Change of Control. If a Change of Control occurs (as defined in the RSOP), at Executive’s option, all stock options that are granted to
Executive by Roxio or Napster (including options granted to Executive after the date of this Agreement) and that are outstanding immediately before the Change of Control will thereupon become fully vested and may be exercised at any time thereafter
without restriction for a period of twenty-four (24) months (subject to earlier termination upon the expiration of the maximum ten-year term of such options and further subject to earlier termination upon a dissolution, liquidation, change of
control or similar event in accordance with Section 12 of the RSOP or similar provisions of the particular option plan under which such options were granted). In the event Executive resigns or is terminated (other than a termination by Roxio for
Cause) within twelve (12) months following a Change of Control, instead of and not in addition to the payments and benefits set forth in paragraph 7(f)(iv) above, Executive shall be entitled to receive the following: (1) payment of the Accrued
Obligations provided for in Paragraph 7(f)(i) above; (2) a lump sum severance payment, in cash, within thirty (30) days after the date of such termination or resignation, in an amount equal to two hundred ninety-nine percent (299%) of the
Executive’s then-applicable Salary, (3) a lump sum bonus for the year in which termination or resignation occurs in an amount equal to the average of the three prior cash bonuses received by Executive; and (4) to the extent Executive elects to
continue medical and dental insurance coverage under COBRA, reimbursement of the COBRA premium for such continuation coverage for a period of eighteen (18) months following the Termination Date. The accelerated vesting provision provided for in this
Paragraph 8 will apply notwithstanding the fact that accelerated vesting may not be required in the circumstances under the applicable Company stock option plan. 
  
 9. Exclusive Employment, Confidential Information, Etc. 
  
 (a) Non-Competition. Executive agrees that Executive’s employment hereunder is on an exclusive basis, and that
during the Term, Executive will not engage in any other business activity which is in conflict with Executive’s duties and obligations hereunder, except for any such activities which have been previously reported to Company’s Board of
Directors prior to the date of this Agreement. Subject to the foregoing, Executive agrees that for the Term Executive shall not directly or indirectly engage in or participate as an officer, 

  

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employee, director, agent of or consultant for any business in the United States directly competitive with that of Company, nor shall Executive make any
investments in any company or business competing with Company; provided, however, that nothing herein shall prevent Executive from investing as less than a one (1%) percent shareholder without limit in the securities of any company
listed on a national securities exchange or quoted on an automated quotation system. 
  
 (b) Confidential Information. Executive recognizes and agrees that access to and knowledge of Company’s trade secrets and other confidential information (collectively “confidential
information”), which are valuable and unique assets of their businesses, is essential to the performance of Executive’s duties hereunder. Accordingly, Executive agrees that Executive shall not during the Term disclose any confidential
information to or for the benefit of any third party for any purpose whatsoever (except as may be required by law or court order or in the performance of Executive’s duties hereunder), nor make use of any of the same for Executive’s own
purposes; provided, however, that disclosures may be made (i) to the extent necessary to comply with government disclosure requirements or applicable laws, (ii) pursuant to subpoena or order of any judicial, legislative, executive, regulatory or
administrative body, or for Executive to enforce Executive’s rights under this Agreement, (iii) to employees, advisors, counsel, financial advisors and other third parties as may be necessary and appropriate in connection with the proper
performance and enforcement of this Agreement; and (iv) pursuant to Executive’s normal reporting procedures as an executive of a publicly traded company (e.g., pursuant to Sarbanes-Oxley requirements or otherwise). Confidential information
includes, but is not limited to, information regarding the businesses of Company, and Company’s customers, vendors, policies, products, services, designs, systems, business plans, agreements, marketing strategies, pricing and costs.
Notwithstanding any of the foregoing to the contrary, confidential information shall be deemed not to include information which (i) is or becomes generally available to the public other than as a result of a disclosure by Executive or any other
person who directly or indirectly receives such information from Executive or at Executive’s direction or (ii) is or becomes available to Executive on a non-confidential basis from a source which is entitled to disclose it to Executive.

  
 (c) Non-Solicitation of Employees. Executive promises
and agrees that he will not, for a period of one year following termination of his employment, directly or indirectly solicit any of the Roxio or Napster employees who earned annually $100,000 or more as an employee of Roxio and/or Napster during
the last six months of his or her own employment to work for any business, individual, partnership, firm, corporation, or other entity. This Paragraph shall not apply to Executive’s Personal Assistant. 
  
 10. Notices. All notices required to be given hereunder shall be given
in writing, by personal delivery or by certified mail, return receipt requested, at the respective addresses of the parties hereto set forth above, or at such other address as may be designated in writing by either party, and in the case of Company,
to the attention of the General Counsel of Company. Copies of any notices to Executive shall be delivered to him at Roxio’s Santa Clara, California office, and shall also be given to M. Kenneth Suddleson, Esq., c/o Morrison & Foerster, LLP,
1880 Century Park East, Suite 1111, Los Angeles, California 90067. Any notice given by mail shall be deemed to have been given three days following such mailing. 
  

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 11. Assignment. This is an Agreement for the performance of personal services by Executive and may
not be assigned by Executive or Roxio except that Roxio may assign this Agreement to any successor in interest to Roxio as a result of a merger, consolidation or sale of all or substantially all of the assets of Roxio, whether by operation of law
(in the case of a sale or other transfer of stock) or otherwise (subject to the provisions of Paragraph 7 above). 
  
 12. California law, Etc. This Agreement and all matters or issues collateral thereto shall be governed by the laws of the State of California
applicable to contracts entered into and to be performed entirely therein. Any disputes regarding this Agreement or Executive’s employment by Company will be resolved through binding arbitration with a single neutral arbitrator under the rules
of JAMS. The proper venue for any such action is the County of Los Angeles. In any action to enforce this Agreement, Executive and Roxio each agree to accept service of process by mail at its address, as applicable, as set forth above (or at any
different address of which Executive has notified Roxio, or Roxio has notified Executive, as applicable, in writing). In any action in which service is made pursuant to this Paragraph, Executive and Roxio each waive any challenge to the personal
jurisdiction of JAMS. 
  
 13. Entire Understanding. This
Agreement contains the entire understanding of the parties hereto relating to the subject matter herein contained, and can be changed only by a writing signed by both parties hereto. 
  
 14. Void Provisions. If any provision of this Agreement, as applied to either party or to any circumstances, shall be
adjudged by a court to be void or unenforceable, the same shall be deemed stricken from this Agreement and shall in no way affect any other provision of this Agreement or the validity or enforceability of this Agreement. 
  
 15. Supersedes Previous Understanding. This Agreement supersedes all
prior understandings (whether written or oral, including without limitation all draft letter agreements) relating to Executive’s employment by Company; provided, however, that this Agreement does not affect any prior grant of stock, stock
options or other benefits which Executive has received prior to the date hereof and/or to which Executive is entitled. 
  
 [Remainder of Page Intentionally Blank] 
  
  

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 IN WITNESS WHEREOF, the undersigned have executed this Employment Agreement on the date first
above written. 
  

	ROXIO, INC.
		
	By:	  	 /s/    WILLIAM E. GROWNEY, JR.

	Name:	  	 William E. Growney, Jr.

	Title:	  	 Secretary

	
	EXECUTIVE
	
	 /s/    WILLIAM CHRISTOPHER GOROG

	WILLIAM CHRISTOPHER GOROG

  

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 EXHIBIT A 
  

SECTION 280G GROSS-UP PROVISIONS 
  
 Equalization Payment. If upon or following a CIC (as defined below) the tax imposed by Section 4999 of the Internal Revenue Code of 1986, as
amended (the “Code”), or any similar or successor tax (the “Excise Tax”) applies, because of the CIC, to any payments, benefits and/or amounts received by Executive as severance benefits or otherwise, including,
without limitation, any amounts received or deemed received, within the meaning of any provision of the Code, by Executive as a result of (and not by way of limitation) any automatic vesting, lapse of restrictions and/or accelerated target or
performance achievement provisions, or otherwise, applicable to outstanding grants or awards to Executive under any of the Company’s incentive plans or agreements (collectively, the “Total Payments”), Roxio shall pay in cash to
Executive or for Executive’s benefit as provided below an additional amount or amounts (the “Gross-Up Payment(s)”) such that the net amount retained by Executive after the deduction of any Excise Tax on such Total Payments so
received and any Federal, state and local income and employment taxes and Excise Tax upon the Gross-Up Payment(s) provided for by this Exhibit A shall be equal to such Total Payments so received had they not been subject to the Excise Tax. Such
Gross-Up Payment(s) shall be made by Roxio to Executive or applicable taxing authority on behalf of Executive as soon as practicable following the receipt or deemed receipt of any portion of such Total Payments so received, and may be satisfied by
Roxio making a payment or payments on Executive’s account in lieu of withholding for tax purposes but in all events shall be made within thirty (30) days of the receipt or deemed receipt by Executive of any portion of such Total Payments. For
purposes of this Exhibit A, “CIC” means the occurrence, either during the Term or, if the Executive’s employment by Roxio terminates during the Term, at any time following such termination of employment, of either (a) a change
in the ownership or effective control of Roxio (within the meaning of Section 280G of the Code), or (b) or a change in the ownership of a substantial portion of the assets of Roxio (within the meaning of Section 280G of the Code). 
  
 Calculation of Gross-Up Payment. The determination of whether a
Gross-Up Payment is required pursuant to this Exhibit A and the amount of any such Gross-Up Payment shall be determined in writing (the “Determination”) by a nationally-recognized certified public accounting firm selected by Roxio
(the “Accounting Firm”). The Accounting Firm shall provide its Determination in writing, together with detailed supporting calculations and documentation and any assumptions used in making such computation, to Roxio and Executive
within twenty (20) days after the later of the date of the CIC or the Executive’s Termination Date. Within twenty (20) days following delivery of the Accounting Firm’s Determination, Executive shall have the right, at Roxio’s expense,
to obtain the opinion of an “outside counsel,” which opinion need not be unqualified, which sets forth: (a) the amount of Executive’s “annualized includible compensation for the base period” (as defined in Code Section
280G(d) (1)); (b) the present value of the Total Payments; (c) the amount and present value of any “excess parachute payment;” and (d) detailed supporting calculations and documentation and any assumptions used in making such computations.
The opinion of such outside counsel shall be supported by the opinion of a nationally-recognized certified public accounting firm and, if necessary or required by Roxio, a firm of nationally-recognized executive compensation 

  

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consultants. The outside counsel’s opinion shall be binding upon Roxio and Executive and shall constitute the “Determination” for
purposes of this Exhibit A instead of the initial determination by the Accounting Firm. Roxio shall pay (or, to the extent paid by Executive, reimburse Executive for) the certified public accounting firm’s and, if applicable, the executive
compensation consultant’s reasonable and customary fees for rendering such opinion. For purposes of this Exhibit A, “outside counsel” means a licensed attorney selected by Executive who is recognized in the field of executive
compensation and has experience with respect to the calculation of the Excise Tax; provided that Roxio must approve Executive’s selection, which approval shall not be unreasonably withheld. 
  
 Computation Assumptions. For purposes of determining whether
any payments, benefits and/or amounts, including amounts paid as severance benefits, will be subject to Excise Tax, and the amount of any such Excise Tax: 
  
 (a) Any other payments, benefits and/or amounts received or to be received by Executive in connection with or contingent upon a CIC of
Roxio or Executive’s termination of employment (whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement with Roxio, or with any person whose actions result in a CIC of Roxio or any person affiliated with
Roxio or such persons) shall be combined to determine whether Executive has received any “parachute payment” within the meaning of Section 280G(b)(2) of the Code, and if so, the amount of any “excess parachute payments” within
the meaning of Section 280G(b)(1) that shall be treated as subject to the Excise Tax, unless in the opinion of the person or firm rendering the Determination, such other payments, benefits and/or amounts (in whole or in part) do not constitute
parachute payments, or such excess parachute payments represent reasonable compensation for services actually rendered within the meaning of Section 280G(b)(4) of the Code in excess of the base amount within the meaning of Section 280G(b)(3) of the
Code, or are otherwise not subject to the Excise Tax; 
  
 (b) The value of any non-cash benefits or any deferred payment or benefit shall be determined by the person or firm rendering the Determination in accordance with the principles of Sections 280G(d)(3) and (4) of the Code. 
  
 (c) The compensation and benefits provided for in this
Agreement, and any other compensation earned prior to the Termination Date by Executive pursuant to the Company’s compensation programs (if such payments would have been made in the future in any event, even though the timing of such payment is
triggered by the CIC), shall for purposes of the calculation pursuant to this Exhibit A be deemed to be reasonable; and 
  
 (d) Executive shall be deemed to pay Federal, state, and local income taxes at the highest applicable marginal rate of taxation (subject,
in the case of employment taxes, to any applicable wage base limitations) in the calendar year in which the Gross-Up Payment is to be made. Furthermore, the computation of the Gross-Up Payment shall assume (and adjust for the fact) that (i) there is
a loss of miscellaneous itemized deductions under Section 67 of the Code (or analogous federal or state provisions) on account of the Gross-Up Payment and (ii) a loss of itemized deductions under Section 68 

  

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of the Code (or analogous federal or state provisions) on account of the Gross-Up Payment. The computation of the Gross-Up Payment shall take into account
any reduction in the Gross-Up Payment due to Executive’s share of the hospital insurance portion of FICA and any state withholding taxes (other than any state withholding tax for income tax liability). The computation of the state and local
income taxes applicable to the Gross-Up Payment shall be based on the highest marginal rate of taxation in the state and locality of Executive’s residence on the Termination Date, and shall take into account the maximum reduction in Federal
income taxes that could be obtained from the deduction of such state and local taxes. 
  
 Executive’s Obligation to Notify Company. Executive shall promptly notify Roxio in writing of any claim by the Internal Revenue Service (or any successor thereof) or any state or local taxing
authority (individually or collectively, the “Taxing Authority”) that, if successful, would require the payment by Roxio of a Gross-Up Payment in excess of any Gross-Up Payment as originally set forth in the Determination. If
Roxio notifies Executive in writing that it desires to contest such claim, Executive shall: (a) give Roxio any information reasonably requested by Roxio relating to such claim; (b) take such action in connection with contesting such claim as Roxio
shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney selected by Roxio that is reasonably acceptable to Executive; (c) cooperate with Roxio in
good faith in order to effectively contest such claim; and (d) permit Roxio to participate in any proceedings relating to such claim; provided that Roxio shall bear and pay directly all attorneys fees, costs and expenses (including additional
interest, penalties and additions to tax) incurred in connection with such contest and shall indemnify and hold Executive harmless, on an after-tax basis, for all taxes (including, without limitation, income and excise taxes), interest, penalties
and additions to tax imposed in relation to such claim and in relation to the payment of such costs and expenses or indemnification. Without limitation on the foregoing provisions of this paragraph, and to the extent its actions do not unreasonably
interfere with or prejudice Executive’s disputes with the Taxing Authority as to other issues, Roxio shall control all proceedings taken in connection with such contest and, in its reasonable discretion, may pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with the Taxing Authority in respect of such claim and may, at its sole option, either direct Executive to pay the tax, interest or penalties claimed and sue for a refund or contest the
claim in any permissible manner, and Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as Roxio shall determine; provided,
however, that if Roxio directs Executive to pay such claim and sue for a refund, Roxio shall advance an amount equal to such payment to Executive, on an interest-free basis, and shall indemnify and hold Executive harmless, on an after-tax basis,
from all taxes (including, without limitation, income and excise taxes), interest, penalties and additions to tax imposed with respect to such advance or with respect to any imputed income with respect to such advance, as any such amounts are
incurred; and, further, provided, that any extension of the statute of limitations relating to payment of taxes, interest, penalties or additions to tax for the taxable year of Executive with respect to which such contested amount is claimed to be
due is limited solely to such contested amount; and, provided, further, that any settlement of any claim shall be reasonably acceptable to Executive and Roxio’s control of the contest shall be limited to issues with respect to which a Gross-Up
Payment would be payable hereunder, and Executive shall be entitled to settle or contest, as the case may be, any other issue. 
  

 S-3 

 Subsequent Recalculation. In the event of a binding or uncontested determination by the
Taxing Authority that adjusts the computation set forth in the Determination so that Executive did not receive the greatest net benefit required pursuant to this Exhibit A, Roxio shall reimburse Executive as provided herein for the full amount
necessary to place Executive in the same after-tax position as he would have been in had no Excise Tax applied. In the event of a binding or uncontested determination by the Taxing Authority that adjusts the computation set forth in the
Determination so that Executive received a payment or benefit in excess of the amount required pursuant to this Exhibit A, then Executive shall promptly pay to Roxio (without interest) the amount of such excess. 
  

 S-4Amended and Restated 2001 Stock Option Plan

 Exhibit 10.2 
  
 ROXIO, INC. 
  
 2001 STOCK PLAN 
  
 AS AMENDED AND RESTATED AUGUST 15, 2003 
  
 1. Purposes of the Plan. The purposes of this 2001 Stock Plan are: 
  

	 	•	 	to attract and retain the best available personnel for positions of substantial responsibility, 

  

	 	•	 	to provide additional incentive to Employees, Directors and Consultants, and 

  

	 	•	 	to promote the success of the Company’s business. 

  
 Options granted under the Plan may be Incentive Stock Options or Nonstatutory Stock Options, as determined by the Administrator at the time of grant.
Stock Purchase Rights may also be granted under the Plan. 
  
 2.
Definitions. As used herein, the following definitions shall apply: 
  
 (a) “Administrator” means the Board or any of its Committees as shall be administering the Plan, in accordance with Section 4 of the Plan. 
  
 (b) “Applicable Laws” means the
requirements relating to the administration of stock option plans under U. S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the
applicable laws of any foreign country or jurisdiction where Options or Stock Purchase Rights are, or will be, granted under the Plan. 
  
 (c) “Board” means the Board of Directors of the Company. 
  
 (d) “Cause” shall have the meaning as set forth in Section 13(f)(ii) of the Plan.

  
 (e) “Change of Control”
shall have the meaning as set forth in Section 13(f)(i) of the Plan. 
  
 (f) “Code” means the Internal Revenue Code of 1986, as amended. 
  
 (g) “Committee” means a committee of Directors appointed by the Board in accordance with Section 4 of the Plan.

  
 (h) “Common Stock” means the
common stock of the Company. 
  
 (i)
“Company” means ROXIO, Inc., a Delaware corporation. 

 (j) “Consultant” means any person, including an advisor, engaged by the
Company or a Parent or Subsidiary to render services to such entity. 
  
 (k) “Continuous Status as an Employee or Consultant” means the absence of any interruption or termination of the employment or consulting relationship by the Company or any Parent or Subsidiary.
Continuous Status as an Employee or Consultant shall not be considered interrupted in the case of: (i) sick leave; (ii) military leave; (iii) any other leave of absence approved by the Board, provided that such leave is for a period of not more than
ninety (90) days, unless reemployment upon the expiration of such leave is guaranteed by contract or statute, or unless provided otherwise pursuant to Company policy adopted from time to time; or (iv) in the case of transfers between locations of
the Company or between the Company, its Parent or Subsidiaries or its successor. If reemployment upon expiration of a leave of absence in excess of ninety (90) days is not guaranteed, on the 181st day of such leave any Incentive Stock Option held by
the Optionee shall cease to be treated as an Incentive Stock Option and shall be treated for tax purposes as a Nonstatutory Stock Option. 
  
 (l) “Director” means a member of the Board. 
  
 (m) “Disability” means total and permanent disability as defined in Section 22(e)(3) of the
Code. 
  
 (n) “Employee” means
any person, including Officers and Directors, employed by the Company or any Parent or Subsidiary of the Company. A Service Provider shall not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers
between locations of the Company or between the Company, its Parent, any Subsidiary, or any successor. For purposes of Incentive Stock Options, no such leave may exceed ninety days, unless reemployment upon expiration of such leave is guaranteed by
statute or contract. If reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed, on the 181st day of such leave any Incentive Stock Option held by the Optionee shall cease to be treated as an Incentive Stock
Option and shall be treated for tax purposes as a Nonstatutory Stock Option. Neither service as a Director nor payment of a director’s fee by the Company shall be sufficient to constitute “employment” by the Company. 
  
 (o) “Exchange Act” means the Securities
Exchange Act of 1934, as amended. 
  
 (p)
“Fair Market Value” means, as of any date, the value of Common Stock determined as follows: 
  
 (i) If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq
National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system for the last market
trading day prior to the time of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 
  

 -2- 

 (ii) If the Common Stock is regularly quoted by a recognized securities dealer but
selling prices are not reported, the Fair Market Value of a Share of Common Stock shall be the mean between the high bid and low asked prices for the Common Stock on the last market trading day prior to the day of determination, as reported in
The Wall Street Journal or such other source as the Administrator deems reliable; or 
  
 (iii) In the absence of an established market for the Common Stock, the Fair Market Value shall be determined in good faith by the
Administrator. 
  
 (q) “Incentive Stock
Option” means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder. 
  
 (r) “Nonstatutory Stock Option” means an Option not intended to qualify as an Incentive
Stock Option. 
  
 (s) “Notice of
Grant” means a written or electronic notice evidencing certain terms and conditions of an individual Option or Stock Purchase Right grant. The Notice of Grant is part of the Option Agreement. 
  
 (t) “Officer” means a person who is an
officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 
  
 (u) “Option” means a stock option granted pursuant to the Plan. 
  
 (v) “Option Agreement” means an agreement
between the Company and an Optionee evidencing the terms and conditions of an individual Option grant. The Option Agreement is subject to the terms and conditions of the Plan. 
  
 (w) “Option Exchange Program” means a program whereby outstanding Options are surrendered
in exchange for Options with a lower exercise price. 
  
 (x) “Optioned Stock” means the Common Stock subject to an Option or Stock Purchase Right. 
  
 (y) “Optionee” means the holder of an outstanding Option or Stock Purchase Right granted under the Plan. 
  
 (z) “Parent” means a “parent
corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code. 
  
 (aa) “Plan” means this Roxio, Inc. 2001 Stock Plan. 
  
 (bb) “Restricted Stock” means shares of Common Stock acquired pursuant to a grant of Stock
Purchase Rights under Section 11 of the Plan. 
  

 -3- 

 (cc) “Restricted Stock Purchase Agreement” means a written agreement
between the Company and the Optionee evidencing the terms and restrictions applying to stock purchased under a Stock Purchase Right. The Restricted Stock Purchase Agreement is subject to the terms and conditions of the Plan and the Notice of Grant.

  
 (dd) “Rule 16b-3” means Rule
16b-3 of the Exchange Act or any successor to Rule 16b-3, as in effect when discretion is being exercised with respect to the Plan. 
  
 (ee) “Section 16(b)” means Section 16(b) of the Exchange Act. 
  
 (ff) “Service Provider” means an Employee,
Director or Consultant. 
  
 (gg)
“Share” means a share of the Common Stock, as adjusted in accordance with Section 13 of the Plan. 
  
 (hh) “Stock Purchase Right” means the right to purchase Common Stock pursuant to Section 11 of the Plan, as evidenced by
a Notice of Grant. 
  
 (ii)
“Subsidiary” means a “subsidiary corporation”, whether now or hereafter existing, as defined in Section 424(f) of the Code. 
  
 3. Stock Subject to the Plan. Subject to the provisions of Section 13 of the Plan, the maximum aggregate number of Shares that may be optioned and
sold under the Plan is 1,000,000 Shares plus an annual increase to be added on the first day of the Company’s fiscal year beginning in fiscal 2003, equal to the lesser of (i) 2,000,000 shares, (ii) six percent (6%) of the outstanding shares on
such date or (iii) an amount determined by the Board. The Shares may be authorized, but unissued, or reacquired Common Stock. 
  
 If an Option or Stock Purchase Right expires or becomes unexercisable without having been exercised in full, or is surrendered pursuant to an Option
Exchange Program, the unpurchased Shares which were subject thereto shall become available for future grant or sale under the Plan (unless the Plan has terminated); provided, however, that Shares that have actually been issued under the Plan,
whether upon exercise of an Option or Right, shall not be returned to the Plan and shall not become available for future distribution under the Plan, except that if Shares of Restricted Stock are repurchased by the Company at their original purchase
price, such Shares shall become available for future grant under the Plan. 
  
 4. Administration of the Plan. 
  
 (a) Procedure. 
  
 (i) Multiple Administrative Bodies. Different Committees with respect to different groups of Service Providers may administer the Plan. 
  
 (ii) Section 162(m). To the extent that the Administrator determines it to be desirable to qualify Options granted hereunder as
“performance-based compensation” within the meaning of Section 162(m) of the Code, the Plan shall 

  

 -4- 

 
be administered 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, the transactions contemplated hereunder shall be structured to satisfy the requirements for exemption under Rule 16b-3. 
  
 (iv) Other Administration. Other than as provided above, the Plan shall be administered by (A) the
Board or (B) a Committee, which committee shall be constituted to satisfy Applicable Laws. 
  
 (b) Powers of the Administrator. Subject to the provisions of the Plan, and in the case of a Committee, subject to the specific
duties delegated by the Board to such Committee, the Administrator shall have the authority, in its discretion: 
  
 (i) to determine the Fair Market Value; 
  
 (ii) to select the Service Providers to whom Options and Stock Purchase Rights may be granted hereunder; 
  
 (iii) to determine the number of shares of Common Stock to
be covered by each Option and Stock Purchase Right granted hereunder; 
  
 (iv) to approve forms of agreement for use under the Plan; 
  
 (v) to determine the terms and conditions, not inconsistent with the terms of the Plan, of any Option or Stock Purchase Right granted
hereunder. Such terms and conditions include, but are not limited to, the exercise price, the time or times when Options or Stock Purchase Rights may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of
forfeiture restrictions, and any restriction or limitation regarding any Option or Stock Purchase Right or the shares of Common Stock relating thereto, based in each case on such factors as the Administrator, in its sole discretion, shall determine;

  
 (vi) to reduce the exercise price of any
Option or Stock Purchase Right to the then current Fair Market Value if the Fair Market Value of the Common Stock covered by such Option or Stock Purchase Right shall have declined since the date the Option or Stock Purchase Right was granted;

  
 (vii) to institute an Option Exchange
Program; 
  
 (viii) to construe and interpret the
terms of the Plan and awards granted pursuant to the Plan; 
  
 (ix) to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for the purpose of qualifying for preferred tax treatment under
foreign tax laws; 
  

 -5- 

 (x) to modify or amend each Option or Stock Purchase Right (subject to Section 15(c) of
the Plan), including the discretionary authority to extend the post-termination exercisability period of Options longer than is otherwise provided for in the Plan; 
  
 (xi) to allow Optionees to satisfy withholding tax obligations by electing to have the Company withhold from
the Shares to be issued upon exercise of an Option or Stock Purchase Right 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 on the
date that the amount of tax to be withheld is to be determined. All elections by an Optionee to have Shares withheld for this purpose shall be made in such form and under such conditions as the Administrator may deem necessary or advisable;

  
 (xii) to authorize any person to execute on
behalf of the Company any instrument required to effect the grant of an Option or Stock Purchase Right previously granted by the Administrator; 
  
 (xiii) to make all other determinations deemed necessary or advisable for administering the Plan. 
  
 (c) Effect of Administrator’s Decision. The
Administrator’s decisions, determinations and interpretations shall be final and binding on all Optionees and any other holders of Options or Stock Purchase Rights. 
  
 5. Eligibility. Nonstatutory Stock Options and Stock Purchase Rights may be granted to Service Providers. Incentive
Stock Options may be granted only to Employees. 
  
 6.
Limitations. 
  
 (a) Each Option shall be
designated in the Option Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option. However, notwithstanding such designation, to the extent that the aggregate Fair Market Value of the Shares with respect to which Incentive Stock
Options are exercisable for the first time by the Optionee during any calendar year (under all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such Options shall be treated as Nonstatutory Stock Options. For purposes of this
Section 6(a), Incentive Stock Options shall be taken into account in the order in which they were granted. The Fair Market Value of the Shares shall be determined as of the time the Option with respect to such Shares is granted. 
  
 (b) Neither the Plan nor any Option or Stock Purchase Right
shall confer upon an Optionee any right with respect to continuing the Optionee’s relationship as a Service Provider with the Company, nor shall they interfere in any way with the Optionee’s right or the Company’s right to terminate
such relationship at any time, with or without cause. 
  

 -6- 

 (c) The following limitations shall apply to grants of Options: 
  
 (i) No Service Provider shall be granted, in any fiscal year
of the Company, Options to purchase more than 500,000 Shares. 
  
 (ii) In connection with his or her initial service, a Service Provider may be granted Options to purchase up to an additional 500,000 Shares, which shall not count against the limit set forth in subsection (i) above.

  
 (iii) The foregoing limitations shall be
adjusted proportionately in connection with any change in the Company’s capitalization as described in Section 13. 
  
 (iv) If an Option is cancelled in the same fiscal year of the Company in which it was granted (other than in connection with a transaction
described in Section 13), the cancelled Option will be counted against the limits set forth in subsections (i) and (ii) above. For this purpose, if the exercise price of an Option is reduced, the transaction will be treated as a cancellation of the
Option and the grant of a new Option. 
  
 7. Term of Plan.
Subject to Section 19 of the Plan, the Plan shall become effective upon its adoption by the Board. It shall continue in effect for a term of ten (10) years unless terminated earlier under Section 15 of the Plan. 
  
 8. Term of Option. The term of each Option shall be stated in the
Option Agreement. In the case of an Incentive Stock Option, the term shall be ten (10) years from the date of grant or such shorter term as may be provided in the Option Agreement. Moreover, in the case of an Incentive Stock Option granted to an
Optionee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Incentive
Stock Option shall be five (5) years from the date of grant or such shorter term as may be provided in the Option Agreement. 
  
 9. Option Exercise Price and Consideration. 
  
 (a) 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 
  
 (A) granted to an Employee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share
exercise price shall be no less than 110% of the Fair Market Value per Share on the date of grant. 
  
 (B) granted to any Employee other than an Employee described in paragraph (A) immediately above, the per Share exercise price shall be no
less than 100% of the Fair Market Value per Share on the date of grant. 
  

 -7- 

 (ii) In the case of a Nonstatutory Stock Option, the per Share exercise price shall be
determined by the Administrator. In the case of a Nonstatutory Stock Option intended to qualify as “performance-based compensation” within the meaning of Section 162(m) of the Code, the per Share exercise price shall be no less than 100%
of the Fair Market Value per Share on the date of grant. 
  
 (iii) Notwithstanding the foregoing, Options may be granted with a per Share exercise price of less than 100% of the Fair Market Value per Share on the date of grant pursuant to a merger or other corporate
transaction. 
  
 (b) Waiting Period and
Exercise Dates. At the time an Option is granted, the Administrator shall fix the period within which the Option may be exercised and shall determine any conditions that must be satisfied before the Option may be exercised. 
  
 (c) Form of Consideration. The Administrator shall
determine the acceptable form of consideration for exercising an Option, including the method of payment. In the case of an Incentive Stock Option, the Administrator shall determine the acceptable form of consideration at the time of grant. Such
consideration may consist entirely of: 
  
 (i)
cash; 
  
 (ii) check; 
  
 (iii) promissory note; 
  
 (iv) other Shares which (A) in the case of Shares acquired
upon exercise of an option, have been owned by the Optionee for more than six months on the date of surrender, and (B) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which said Option
shall be exercised; 
  
 (v) consideration
received by the Company under a cashless exercise program implemented by the Company in connection with the Plan; 
  
 (vi) a reduction in the amount of any Company liability to the Optionee, including any liability attributable to the Optionee’s
participation in any Company-sponsored deferred compensation program or arrangement; 
  
 (vii) any combination of the foregoing methods of payment; or 
  
 (viii) such other consideration and method of payment for the issuance of Shares to the extent permitted by
Applicable Laws. 
  
 10. Exercise of Option. 
  
 (a) Procedure for Exercise; Rights as a Shareholder.
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 Option 

  

 -8- 

 
Agreement. Unless the Administrator provides otherwise, vesting of Options granted hereunder shall be tolled during any unpaid leave of absence. An Option
may not be exercised for a fraction of a Share. 
  
 An Option shall be deemed exercised when the Company receives: (i) written or electronic notice of exercise (in accordance with the Option Agreement) from the person entitled to exercise the Option, and (ii) full payment for the Shares with
respect to which the Option is exercised. Full payment may consist of any consideration and method of payment authorized by the Administrator and permitted by the Option Agreement and the Plan. Shares issued upon exercise of an Option shall be
issued in the name of the Optionee or, if requested by the Optionee, in the name of the Optionee and his or her spouse. 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 shareholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such Shares
promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 13 of the Plan. 
  
 Exercising an Option in any manner shall decrease the number
of Shares thereafter available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised. 
  
 (b) Termination of Relationship as a Service Provider. If an Optionee ceases to be a Service Provider, other than upon the
Optionee’s death or Disability, the Optionee may exercise his or her Option within such period of time as is specified in the Option Agreement to the extent that the Option is vested on the date of termination (but in no event later than the
expiration of the term of such Option as set forth in the Option Agreement). In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for ninety (90) days following the Optionee’s termination. If, on the
date of termination, the Optionee is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall revert to the Plan, unless otherwise provided for in the Option Agreement. If, after termination, the
Optionee does not exercise his or her Option within the time specified by the Administrator, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
  
 (c) Disability of Optionee. If an Optionee ceases to be a Service Provider as a result of the
Optionee’s Disability, the Optionee may exercise his or her Option within such period of time as is specified in the Option Agreement to the extent the Option is vested on the date of termination (but in no event later than the expiration of
the term of such Option as set forth in the Option Agreement). In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for six (6) months following the Optionee’s termination. If, on the date of
termination, the Optionee is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall revert to the Plan. If, after termination, the Optionee does not exercise his or her Option within the time
specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
  

 -9- 

 (d) Death of Optionee. If an Optionee dies while a Service Provider, the Option
may be exercised within such period of time as is specified in the Option Agreement (but in no event later than the expiration of the term of such Option as set forth in the Notice of Grant), by the Optionee’s estate or by a person who acquires
the right to exercise the Option by bequest or inheritance, but only to the extent that the Option is vested on the date of death. In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for six (6) months
following the Optionee’s date of death. If an Optionee dies while a Service Provider, then any of Optionee’s Options that are not yet exercisable and vested on the date of death of the Optionee shall immediately become one hundred percent
(100%) vested and exercisable. The Option may be exercised by the executor or administrator of the Optionee’s estate or, if none, by the person(s) entitled to exercise the Option under the Optionee’s will or the laws of descent or
distribution. If the Option is not so exercised within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
  
 (e) Buyout Provisions. The Administrator may at any time offer to buy out for a payment in cash or
Shares an Option previously granted based on such terms and conditions as the Administrator shall establish and communicate to the Optionee at the time that such offer is made. 
  
 11. Stock Purchase Rights. 
  

(a) Rights to Purchase. Stock Purchase Rights may be issued either alone, in addition to, or in tandem with other awards granted
under the Plan and/or cash awards made outside of the Plan. After the Administrator determines that it will offer Stock Purchase Rights under the Plan, it shall advise the offeree in writing or electronically, by means of a Notice of Grant, of the
terms, conditions and restrictions related to the offer, including the number of Shares that the offeree shall be entitled to purchase, the price to be paid, and the time within which the offeree must accept such offer. The offer shall be accepted
by execution of a Restricted Stock Purchase Agreement in the form determined by the Administrator. 
  
 (b) Repurchase Option. Unless the Administrator determines otherwise, the Restricted Stock Purchase Agreement shall grant the
Company a repurchase option exercisable upon the voluntary or involuntary termination of the purchaser’s service with the Company for any reason (including death or Disability). The purchase price for Shares repurchased pursuant to the
Restricted Stock Purchase Agreement shall be the original price paid by the purchaser and may be paid by cancellation of any indebtedness of the purchaser to the Company. The repurchase option shall lapse at a rate determined by the Administrator.

  
 (c) Other Provisions. The Restricted
Stock Purchase Agreement shall contain such other terms, provisions and conditions not inconsistent with the Plan as may be determined by the Administrator in its sole discretion. 
  
 (d) Rights as a Shareholder. Once the Stock Purchase Right is exercised, the purchaser shall have the
rights equivalent to those of a shareholder, and shall be a 

  

 -10- 

 
shareholder when his or her purchase is entered upon the records of the duly authorized transfer agent of the Company. No adjustment will be made for a
dividend or other right for which the record date is prior to the date the Stock Purchase Right is exercised, except as provided in Section 13 of the Plan. 
  
 12. Non-Transferability of Options and Stock Purchase Rights. Unless determined otherwise by the Administrator, an Option or Stock Purchase Right
may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Optionee, only by the Optionee. If the
Administrator makes an Option or Stock Purchase Right transferable, such Option or Stock Purchase Right shall contain such additional terms and conditions as the Administrator deems appropriate. 
  
 13. Adjustments Upon Changes in Capitalization, Dissolution, Merger or
Asset Sale. 
  
 (a) Changes in
Capitalization. Subject to any required action by the shareholders of the Company, the number of shares of Common Stock covered by each outstanding Option and Stock Purchase Right, and the number of shares of Common Stock which have been
authorized for issuance under the Plan but as to which no Options or Stock Purchase Rights have yet been granted or which have been returned to the Plan upon cancellation or expiration of an Option or Stock Purchase Right, as well as the price per
share of Common Stock covered by each such outstanding Option or Stock Purchase Right, shall be proportionately adjusted for any increase or decrease in the number of issued shares of Common Stock resulting from a stock split, reverse stock split,
stock dividend, combination or reclassification of the Common Stock, or any other increase or decrease in the number of issued shares of Common Stock effected without receipt of consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall be made by the Board, whose determination in that respect shall be final, binding and conclusive.
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 of Common Stock subject to an Option or Stock Purchase Right. 
  
 (b) Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Administrator shall
notify each Optionee as soon as practicable prior to the effective date of such proposed transaction. The Administrator in its discretion may provide for an Optionee to have the right to exercise his or her Option until ten (10) days prior to such
transaction as to all of the Optioned Stock covered thereby, including Shares as to which the Option would not otherwise be exercisable. In addition, the Administrator may provide that any Company repurchase option applicable to any Shares purchased
upon exercise of an Option or Stock Purchase Right shall lapse as to all such Shares, 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
Option or Stock Purchase Right will terminate immediately prior to the consummation of such proposed action. 
  

 -11- 

 (c) Change of Control. In the event of a Change of Control of the Company each
outstanding Option and Stock Purchase Right shall be assumed or an equivalent option or right substituted by the successor corporation or a Parent or Subsidiary of the successor corporation. In the event that the successor corporation refuses to
assume or substitute for the Option or Stock Purchase Right, the Optionee shall fully vest in and have the right to exercise the Option or Stock Purchase Right as to all of the Optioned Stock, including Shares as to which it would not otherwise be
vested or exercisable. If an Option or Stock Purchase Right becomes fully vested and exercisable in lieu of assumption or substitution in the event of a Change of Control, the Administrator shall notify the Optionee in writing or electronically that
the Option or Stock Purchase Right shall be fully vested and exercisable for a period of fifteen (15) days from the date of such notice, and the Option or Stock Purchase Right shall terminate upon the expiration of such period. For the purposes of
this paragraph, the Option or Stock Purchase Right shall be considered assumed if, following the Change of Control, the option or right confers the right to purchase or receive, for each Share of Optioned Stock subject to the Option or Stock
Purchase Right immediately prior to the Change of Control, the consideration (whether stock, cash, or other securities or property) received in the Change of Control by holders of Common Stock for each Share held on the effective date of the
transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the Change of Control is not
solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of the Option or Stock Purchase Right, for each
Share of Optioned Stock subject to the Option or Stock Purchase Right, to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the Change
of Control. 
  
 (d) Change of Control. In
the event of a Change of Control of the Company (as such term is defined in paragraph (f) below), then any Options outstanding upon the date of such Change of Control that are not yet exercisable and vested on such date shall have their vesting
accelerated as to an additional twenty-five percent (25%) of the unvested Shares subject to such Options as of the date of such Change of Control, and such Stock Options shall continue to otherwise vest, (subject to (i) Optionee remaining in
Continuous Status as an Employee or Consultant, and (ii) accelerated vesting as provided for in Sections 13(c) or 13(e) of this Plan) at the same rate and as to the same number of Shares per vesting period as immediately prior to the Change of
Control. For example, if an Optionee holds an Option that is fifty percent (50%) vested immediately prior to the date of a Change of Control, which Option ordinarily vests so as to be one hundred percent (100%) vested four years after the date of
grant (subject to Optionee maintaining his or her Continuous Status as an Employee or Consultant), the Option would, upon the date of the Change of Control, become vested as to an additional twelve and one-half percent (12.5%) of the total number of
Shares covered by the Option (that is, twenty-five percent (25%) of the fifty percent (50%) that remained unvested as of the date of the Change of Control). The Option would resume vesting (subject to (i) Optionee maintaining his or her Continuous
Status as an Employee or Consultant, and (ii) accelerated vesting as provided for in Sections 13(c) or 13(e) of this Plan) so as to be 

  

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one hundred percent (100%) vested three and one-half (3 1⁄2) years following the date of grant. On the twelve month anniversary date (the
“Anniversary Date”) following the date of the Change of Control each Service Provider who is an Optionee shall have twenty-five percent (25%) of the unvested Shares subject to such Options as of the Anniversary Date accelerated, provided,
however, that such Optionee was a Service Provider on the date the Change of Control occurred and is a Service Provider on the Anniversary Date. For purposes of this Section 13(d), any acceleration applies only to options that have not expired.

  
 (e) In the event an Optionee is involuntarily
terminated without Cause within twelve (12) months following a Change of Control of the Company (as such terms are defined in Section 13(f) below), then any unexpired Options outstanding upon the date of such Change of Control that are not yet
exercisable and vested on such date shall become one hundred percent (100%) exercisable and vested. Notwithstanding the foregoing, (unless Optionee is party to a duly authorized written agreement with the Company providing otherwise) this Plan does
not constitute a contract of employment or impose on the Company any obligation to retain the Optionee, or to change the Company’s policies regarding termination of employment or other provision of services. The employment of Optionees who are
Employees is and shall continue to be at-will, as defined under applicable law, and may be terminated at any time, with or without cause. 
  
 (f) Definitions. 
  
 (i) Change of Control. For purposes of this Section, a “Change of Control” means the occurrence of any of the following:

  
 (A) When any “person,” as such
term is used in Sections 13(d) and 14(d) of the Securities Exchange Act (other than Adaptec, Inc., the Company, a Subsidiary or a Company employee benefit plan, including any trustee of such plan acting as trustee) is or becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the combined voting power of the Company’s then outstanding securities; 

 
 (B) A change in the composition of the Board (excluding
a change caused by Adaptec, Inc.) occurring within a two-year period, as a result of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors” shall mean directors who either (I) are directors of the
Company as of the date hereof, or (II) are appointed elected, or nominated for election, to the Board with the affirmative votes of at least a majority of the Incumbent Directors at the time of such appointment election or nomination (but shall not
include an individual whose election or nomination is in connection with an actual or threatened proxy contest relating to the election of directors to the Company); 
  

 -13- 

 (C) The consummation of a merger or consolidation of the Company with any other
corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities
of the surviving entity) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or 
  
 (D) The consummation of the sale or disposition by the
Company of all or substantially all the Company’s assets. 
  
 (ii) Cause. For purposes of this Section 13, “Cause” shall mean (A) any act of personal dishonesty taken by the Optionee in connection with his responsibilities as a service provider to the Company
and intended to result in substantial personal enrichment of the Optionee, (B) the Optionee’s conviction of a felony, or (C) a willful act by the Optionee which constitutes gross misconduct and which is injurious to the Company, or (D)
continued substantial violations by the Optionee of the Optionee’s duties to the Company which are demonstrably willful and deliberate on the Optionee’s part after there has been delivered to the Optionee a written demand for performance
from the Company which specifically sets forth the factual basis for the Company’s belief that the Optionee has committed continued substantial violations of his or her duties. 
  
 (g) Golden Parachute Excise Tax Vesting Acceleration Limitation. Notwithstanding any other provision
of this Plan, in the event that the vesting acceleration provided for in this Plan or amounts or benefits otherwise payable to an Optionee (i) constitute “parachute payments” within the meaning of Section 280G of the Code, and (ii) but for
this Section, would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Optionee’s accelerated vesting hereunder shall be either 
  
 (i) made in full, or 
  
 (ii) made as to such lesser extent as would result in no portion of such acceleration, amounts or benefits
being subject to the Excise Tax, 
  
 whichever of the foregoing
amounts, taking into account the applicable federal, state and local income taxes and the Excise Tax, results in the receipt by the Optionee on an after-tax basis, of the greatest amount of severance benefits, notwithstanding that all or some
portion of such severance benefits may be taxable under Section 4999 of the Code. Unless the Company and the Optionee otherwise agree in writing, any determination required under this Section shall be made in writing in good faith by the accounting
firm serving as the Company’s independent public accountants immediately prior to the Change of Control (the “Accountants”). In the event of a reduction in benefits hereunder, the Optionee shall be given the choice of which benefits
to reduce. For purposes of making the calculations required by this Section, the Accountants may make reasonable 

  

 -14- 

 
assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G
and 4999 of the Code. The Company and the Optionee shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section. The Company shall bear all costs the
Accountants may reasonably incur in connection with any calculations contemplated by this Section. 
  
 14. Date of Grant. The date of grant of an Option or Stock Purchase Right shall be, for all purposes, the date on which the Administrator makes the
determination granting such Option or Stock Purchase Right, or such other later date as is determined by the Administrator. Notice of the determination shall be provided to each Optionee within a reasonable time after the date of such grant.

  
 15. Amendment and Termination of the Plan. 

 
 (a) Amendment and Termination. The Board may at
any time amend, alter, suspend or terminate the Plan. 
  
 (b) Shareholder Approval. The Company shall obtain shareholder approval of any Plan amendment to the extent necessary and desirable to comply with Applicable Laws. 
  
 (c) Effect of Amendment or Termination. No amendment, alteration, suspension or termination of the
Plan shall impair the rights of any Optionee, unless mutually agreed otherwise between the Optionee and the Administrator, which agreement must be in writing and signed by the Optionee and the Company. Termination of the Plan shall not affect the
Administrator’s ability to exercise the powers granted to it hereunder with respect to Options granted under the Plan prior to the date of such termination. 
  
 16. Conditions Upon Issuance of Shares. 
  
 (a) Legal Compliance. Shares shall not be issued pursuant to the exercise of an Option or Stock
Purchase Right unless the exercise of such Option or Stock Purchase Right and the issuance and delivery of such Shares shall comply with Applicable Laws and shall be further subject to the approval of counsel for the Company with respect to such
compliance. 
  
 (b) Investment
Representations. As a condition to the exercise of an Option or Stock Purchase Right, the Company may require the person exercising such Option or Stock Purchase Right to represent and warrant at the time of any such exercise that the Shares are
being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required. 
  
 17. Inability to Obtain Authority. The inability of the Company to obtain authority from any regulatory body having
jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the 

  

 -15- 

 
Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained.

  
 18. 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. 
  
 19. Shareholder Approval. The Plan shall be subject to approval by the shareholders of the Company within twelve (12) months after the date the
Plan is adopted. Such shareholder approval shall be obtained in the manner and to the degree required under Applicable Laws. 
  
 20. Outside Director Options. The stock option grants called for by and the provisions of this Section 20 shall be automatic and, to the maximum
extent possible, self-effectuating. 
  
 (a)
Participation. Options under this Section 20 shall be made only to Outside Directors. An ‘Outside Director’ is a Director who is not an Employee. Options under this Section 20 shall be evidenced by Director Stock Option Agreements
substantially in the form of Appendix A hereto. 
  
 (b) Automatic Stock Option Grants. 
  
 (i) Reserved. 
  
 (ii) This clause (ii)
shall be effectively only as to grants that may not otherwise be made or provided for, as the case may be, under the Roxio, Inc. 2001 Director Option Plan (the “Director Plan”). For example, if a grant is provided under this clause (ii)
and a similar grant is provided for at about that time under the Director Plan, then such grant shall be made under the Director Plan (and not under this Plan) if there are then sufficient shares available under the Director Plan to make such grant.
If the Director Plan share limits would be exceeded by a particular grant or grants, the a pro-rata portion of each grant to be made at that time shall be made under the Director Plan (up to the Director Plan share limit) and the balance shall be
made under this Plan. If a grant is contemplated by this clause (ii) and a similar grant is not contemplated by the Director Plan (or if a larger grant is contemplated by this clause (ii) in the circumstances), then such grant (or the excess, as the
case may be) shall be made under this Plan. Each Outside Director who takes office upon or following the Company’s 2003 annual meeting of stockholders shall automatically be granted (without further action by the Board or a Committee) a
Nonstatutory Stock Option to purchase 25,000 Shares (or, in the case of an Outside Director who, as of the date he or she first becomes an Outside Director, is the chairman of the Board, the chairman of the compensation committee of the Board, the
chairman of the audit committee of the Board or the chairman of the nominating & corporate governance committee of the Board, the grant of an Option will be an Option to purchase 30,000 Shares not 25,000 Shares) on the date on which such person
first becomes an Outside Director, whether through election by the shareholders of the Company or appointment by the Board to fill a vacancy; provided, however, that a member of 

  

 -16- 

 
the Board who is also an Employee but who ceases to be an Employee shall not be eligible for an Option grant pursuant to this clause (ii). 
  
 (iii) This clause (iii) shall be effectively only as to
grants that may not otherwise be made or provided for, as the case may be, under the Director Plan. For example, if a grant is provided under this clause (iii) and a similar grant is provided for at about that time under the Director Plan, then such
grant shall be made under the Director Plan (and not under this Plan) if there are then sufficient shares available under the Director Plan to make such grant. If the Director Plan share limits would be exceeded by a particular grant or grants, the
a pro-rata portion of each grant to be made at that time shall be made under the Director Plan (up to the Director Plan share limit) and the balance shall be made under this Plan. If a grant is contemplated by this clause (iii) and a similar grant
is not contemplated by the Director Plan (or if a larger grant is contemplated by this clause (iii) in the circumstances), then such grant (or the excess, as the case may be) shall be made under this Plan. Each Outside Director shall automatically
be granted (without further action by the Board or a Committee) a Nonstatutory Stock Option to purchase 6,250 Shares (or, in the case of an Outside Director who, as of the applicable grant date of the Option, is the chairman of the Board, the
chairman of the compensation committee of the Board, the chairman of the audit committee of the Board or the chairman of the nominating & corporate governance committee of the Board, the grant of an Option will be an Option to purchase 7,500
Shares not 6,250 Shares) on January 1 of each year during the term of the Plan, commencing with January 1, 2004, provided he or she is then an Outside Director and as of such date of grant he or she shall have served on the Board for at least the
preceding six (6) months. 
  
 (c) Share
Limit. Grants that would otherwise exceed the maximum number of Shares under Section 3 shall be prorated within such limitation. 
  
 (d) Exercise Price; Exercise Procedures. 
  

(i) The per share exercise price of each Option granted pursuant to this Section 20 shall be one hundred percent (100%) of the Fair
Market Value of a Share as of the applicable date of grant (determined pursuant to Section 20(b) above) of the Option. 
  
 (ii) Each Option granted under this Section 20 shall be exercisable only to the extent that it is vested and has not terminated or
expired. 
  
 (iii) An Option granted under this
Section 20 may not be exercised for a fraction of a Share. 
  
 (iv) An Option granted under this Section 20 shall be deemed to be exercised when written notice of such exercise (in the form attached to the applicable Director Stock Option Agreement) has been given to the Company
in accordance with the terms of the Option by the person entitled to exercise the 

  

 -17- 

 
Option and full payment for the Shares with respect to which the Option is exercised has been received by the Company. Until the issuance (as evidenced by
the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company) of the stock certificate evidencing such Shares, no right to vote or receive dividends or any other rights as a shareholder shall exist with
respect to the Optioned Stock, notwithstanding the exercise of the Option. A share certificate for the number of Shares so acquired shall be issued to the Optionee as soon as practicable after exercise of the Option. No adjustment shall be made for
a dividend or other right for which the record date is prior to the date the stock certificate is issued, except as provided in Section 13 of the Plan. Exercise of an Option in any manner shall result in a decrease in the number of Shares which
thereafter may be available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised. 
  
 (v) The exercise price of any Option granted under this Section 20 shall be paid in full at the time of each purchase (i) in cash, (ii) by
check, (iii) by the delivery of other Shares which (x) in the case of Shares acquired upon exercise of an option, have been owned by the Optionee for more than six (6) months on the date of surrender, and (y) have a Fair Market Value on the date of
surrender equal to the aggregate exercise price of the Shares as to which said Option shall be exercised, (iv) by consideration received by the Company under a cashless exercise program implemented by the Company in connection with the Plan, or (v)
any combination of the foregoing methods of payment. 
  
 (e) Vesting. Each Option granted under this Section 20 shall become vested on a quarterly basis as follows: 6.25% of the total number of Shares subject to the Option shall vest on each three-month anniversary of the date of grant of
the Option such that the Option is scheduled to become fully vested on the fourth anniversary of the date of grant of the Option; provided, in the case of each vesting date, that the director has continued as a member of the Board through such date.
If an Option is granted on the 29th, 30th, or 31st of a month and a three-month anniversary of such date is scheduled to occur in a month that does not contain 29, 30, or 31 days, as applicable, the applicable installment of the Option shall instead
be deemed to vest on the last day of the relevant month. 
  
 (f) Term of Options; Termination of Services. Options granted pursuant to this Section 20 shall be subject to the following termination provisions. 
  
 (i) Each Option granted under this Section 20 shall have a maximum term of ten (10) years and shall expire
no later than the close of business on the last business day preceding the tenth (10th) anniversary of the initial date of grant of the Option. 
  
 (ii) In the event an Optionee’s status as a Director terminates (other than upon the Optionee’s death), the Optionee may
exercise his or her Option, but only within ninety (90) days following the date of such termination, and only to the extent that the Optionee was entitled to exercise it on the date of such 

  

 -18- 

 
termination (but in no event later than the expiration of its ten (10) year term). To the extent that the Optionee was not entitled to exercise an Option on
the date of such termination, and to the extent that the Optionee does not exercise such Option (to the extent otherwise so entitled) within the time specified herein, the Option shall terminate. 
  
 (iii) In the event of an Optionee’s death, the
Optionee’s estate or a person who acquired the right to exercise the Option by bequest or inheritance may exercise the Option, but only within six months following the date of the Optionee’s death, and only to the extent that the Optionee
was entitled to exercise it on the date of death (but in no event later than the expiration of its ten (10) year term). To the extent that the Optionee was not entitled to exercise an Option on the date of death, and to the extent that the
Optionee’s estate or a person who acquired the right to exercise such Option does not exercise such Option (to the extent otherwise so entitled) within the time specified herein, the Option shall terminate. 
  
 (g) Transferability. Options granted pursuant to this
Section 20 shall be subject to the transfer limitations set forth in Section 12. 
  
 (h) Adjustments; Dissolution or Liquidation; Change of Control. 
  
 (i) Options granted under this Section 20 shall be subject to adjustment as provided in Section 13(a).

  
 (ii) Options granted under this Section 20
shall be subject to the accelerated vesting, termination, and other dissolution or liquidation provisions of Section 13(b). 
  
 (iii) Options granted under this Section 20 that are outstanding immediately prior to a Change of Control (as such term is defined for
purposes of Section 13) shall thereupon become fully vested and shall be subject to termination in connection with a Change of Control as provided in Section 13(c). 
  
 (iv) The accelerated vesting provisions of clauses (ii) and (iii) above are subject to the golden parachute
excise tax provisions of Section 13(g). 
  

 -19-

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