Document:

EX-4.2

Exhibit 4.2

GIGAMEDIA LIMITED

2008 EMPLOYEE SHARE PURCHASE PLAN

     1. Purpose. The purpose of the Plan is to provide employees of the Company and its
Designated Subsidiaries with an opportunity to purchase common stock of the Company.

     2. Definitions.

          a. “Board” shall mean the Board of Directors of the Company.

          b. “Change in Capitalization” shall mean any increase, reduction, or change or exchange of
Common Stock for a different number or kind of shares or other securities of the Company by reason
of a reclassification, recapitalization, merger, consolidation, reorganization, stock dividend,
stock split or reverse stock split, combination or exchange of shares, repurchase of shares, change
in corporate structure or otherwise.

          c. “Code” means the United States Internal Revenue Code of 1986, as amended.

          d. “Committee” shall mean the Board, the Compensation Committee of the Board, or such other
Committee appointed by the Board to administer the Plan and to perform the functions set forth
herein.

          e. “Common Stock” shall mean ordinary shares in the capital of the Company.

          f. “Company” shall mean GigaMedia Limited, a company incorporated in the Republic of Singapore
(Registration No.: 199905474H ).

          g. “Compensation” shall mean the fixed salary or base wage paid by the Company to an Employee
as reported for income tax purposes, including where applicable such Employee’s portion of salary
deferral contributions pursuant to Section 401(k) of the Code and any amount excludable pursuant to
Section 125 of the Code, but in any case excluding any bonus, fee, overtime pay, severance pay,
expenses, stock option or other equity incentive income, or other special emolument or any credit
or benefit under any employee plan maintained by the Company.

          h. “Continuous Status as an Employee” shall mean the absence of any interruption or
termination of service as an Employee. Continuous Status as an Employee shall not be considered
interrupted in the case of a leave of absence agreed to in writing by the Company (including, but
not limited to, military or sick leave), provided that such leave is for a period of not
more than 90 days or reemployment upon the expiration of such leaves is guaranteed by contract or
statute.

          i. “Designated Subsidiaries” shall mean the subsidiaries of the Company which have been
designated by the Company from time to time in its sole discretion as eligible to participate in
the Plan.

          j. “Employee” shall mean any person, including an officer, who is regularly employed by the
Company or one of its Designated Subsidiaries.

          k. “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

          l. “Exercise Date” shall mean the last business day of each Offering Period.

          m. “Fair Market Value” per Common Stock as of a particular date shall mean (i) the closing
sales price per Common Stock on the national securities exchange on which the Common Stock is
principally traded, on such date or on the last preceding date on which there was a sale of such
Common Stock on such exchange, or (ii) if the Common Stock are not then listed on a national
securities exchange or traded in an over-the-counter market, such value as the Committee, in its
sole discretion, shall determine.

          n. “Offering Date” shall mean the date or dates determined by the Committee for an Offering
Period to Commence.

          o. “Offering Period” shall mean the period or periods determined by the Committee commencing
on each Offering Date; provided, however, that (i) if the Offering Period is being
administered with the intent of qualifying the Common Stock to be purchased as eligible for
treatment as purchased under an employee stock purchase plan under Section 423 of the Code, such
Offering Period may not exceed 27 months in length and (ii) if the Offering Period is being
administered as provided in Section 4d hereof, the Offering Period may not exceed one calendar
month in length.

          p. “Participant” shall mean an Employee who participates in the Plan.

          q. “Plan” shall mean the GigaMedia Limited 2008 Employee Share Purchase Plan, as amended from
time to time.

     3. Eligibility.

 

 

          Subject to the requirements of Section 4b hereof, any person who is an Employee as of an
Offering Date shall be eligible to participate in the Plan; provided, that the Committee
may exclude Employees from eligibility and participation in the Plan to the extent permissible
under Section 423(b)(4) of the Code and/or FAS 123(R).

     4. Grant of Purchase Right; Participation.

          a. On each Offering Date, the Company shall commence an offer by granting each eligible
Employee the right to purchase Common Stock, subject to the limitations set forth in Sections 3 and
10 hereof.

          b. Each eligible Employee may elect to become a Participant in the Plan with respect to an
Offering Period, only by filing a notice with the Company in the form determined by the Committee.
Each such notice shall be effective for subsequent Offering Periods until modified or terminated by
the Participant.

          c. If the Offering Period is being administered with the intent of qualifying Common Stock to
be purchased as eligible for treatment as purchased under an employee stock purchase plan under
Section 423 of the Code, the purchase price per Common Stock subject to an offering shall be not
less than 85% of the lesser of (i) the Fair Market Value of Common Stock as of the Offering Date or
(ii) the Fair Market Value of Common Stock as of the Exercise Date (or as of such other time or
times determined by the Committee).

          d. The Committee may determine that an Offering Period shall be administered with the intent
that the purchase rights granted with respect to such Offering Period shall qualify as
non-compensatory under FAS 123(R). In such event the purchase price for the Common Stock offering
during such Offering Period shall be not less than 95% of the Fair Market Value of Common Stock as
of the Exercise Date.

     5. Contributions.

          a. A Participant may, in accordance with rules adopted by the Committee, authorize a payroll
deduction (or such other method of payment determined by the Committee) of any whole percentage
from 2 percent to 10 percent of such Participant’s Compensation for each pay period occurring
during the applicable Offering Period. A Participant may increase or decrease such payroll
deduction (including a cessation of payroll deductions) at any time but not more frequently than
once per calendar month, by filing a new authorization form with the Committee. Such authorization
will remain effective for subsequent Offering Periods until modified or terminated by the
Participant. For purposes of this Plan, any reference to contributions is deemed to also include
any other method of contribution determined by the Committee from time to time.

          b. All contributions made by a Participant shall be credited to such Participant’s account
under the Plan.

          c. No Participant may contribute more than $25,000 under the Plan per calendar year if the
Plan is being administered with the intent of qualifying the Common Stock to be purchased as
eligible for treatment as purchased under an employee stock purchase plan under Section 423 of the
Code.

     6. Exercise of Purchase Rights.

          a. Unless a Participant withdraws from the Plan as provided in Section 8 hereof, such
Participant’s right to purchase Common Stock will be exercised automatically on the Exercise Date,
and the maximum number of Common Stock subject to such right will be purchased for such participant
at the applicable purchase price with the accumulated contributions in such participant’s account.

          b. Any cash balance remaining in a Participant’s account after the termination of an Offering
Period will be carried forward to the Participant’s account for the purchase of Common Stock during
the next Offering Period if the Participant elects to participate in such subsequent Offering
Period, and will be repaid to the Participant if the Participant does not participate in such
subsequent Offering Period.

     7. Delivery of Common Stock.

          As promptly as practicable after Common Stock are purchased upon exercise of the purchase
right hereunder, the Company shall arrange the delivery to such Participant a share certificate
representing the Common Stock which the Participant purchases.

     8. Withdrawal; Termination of Employment.

          a. A Participant may withdraw all, but not less than all, the contributions credited to such
Participant’s account (that have not been used to purchase Common Stock) under the Plan at any time
by giving written notice to the Company received prior to the Exercise Date. All such
contributions credited to such Participant’s account will be paid to such Participant promptly
after receipt of such Participant’s notice of withdrawal and such Participant’s purchase right for
the Offering Period in which the withdrawal occurs will be automatically terminated. No further
payroll deductions for the purchase of Common Stock will be made for such participant during such
Offering Period and for the following Offering Period.

          b. Upon termination of a Participant’s Continuous Status as an Employee during an Offering
Period for any reason, including voluntary termination, retirement or death, the contributions
credited to the Participant’s account that have not been used to purchase Common Stock will be
returned to such Participant or, in the case of such Participant’s death, to the person or persons
entitled thereto under Section 12 hereof, and such Participant’s purchase right will be
automatically terminated.

 

 

     9. Interest.

     No interest shall accrue or be paid on any contributions credited to a Participant’s account
under the Plan.

     10. Common Stock.

          a. The maximum number of Common Stock which shall be reserved for sale under the Plan shall be
200,000, subject to adjustment upon Changes in Capitalization of the Company as provided in Section
15 hereof. If the total number of Common Stock which would otherwise be subject to purchase rights
granted pursuant to Section 4.a. hereof on an Offering Date exceeds the number of Common Stock then
available under the Plan (after deduction of all Common Stock for which purchase rights have been
exercised or are then outstanding), the Committee shall make a pro rata allocation of the Common
Stock remaining available for purchase in as uniform a manner as shall be practicable and as it
shall determine to be equitable. In such event, the Committee shall give written notice to each
Participant of such reduction of the number of Common Stock available for purchase and shall
similarly reduce the rate of payroll deductions if necessary.

          b. Common Stock to be delivered to a Participant under the Plan will be registered in the name
of the Participant.

     11. Administration. The Plan shall be administered by the Committee, and the
Committee may select an administrator to whom its duties and responsibilities hereunder may be
delegated. The Committee shall have full power and authority, subject to the provisions of the
Plan, to promulgate such rules and regulations as it deems necessary for the proper administration
of the Plan, to interpret the provisions and supervise the administration of the Plan, and to take
all action in connection therewith or in relation thereto as it deems necessary or advisable. Any
decision reduced to writing and signed by a majority of the members of the Committee shall be fully
effective as if it had been make at a meeting duly held and shall be binding on all parties. The
Company will pay all expenses incurred in the administration of the Plan. No member of the
Committee shall be personally liable for any action, determination, or interpretation make in good
faith with respect to the Plan, and all members of the Committee shall be fully indemnified by the
Company with respect to any such action, determination or interpretation.

     12. Designation of Beneficiary.

          a. A Participant may file, on forms supplied by and delivered to the Company, a written
designation of a beneficiary who is to receive any Common Stock and cash remaining in such
Participant’s account under the Plan in the event of the Participant’s death.

          b. Such designation of beneficiary may be changed by the Participant at any time by written
notice. In the event of the death of a Participant and in the absence of a beneficiary validly
designated under the Plan who is living at the time of such Participant’s death, the Company shall
deliver such Common Stock and/or cash to the executor or administrator of the estate of the
Participant or, if no such executor or administrator has been appointed (to the knowledge of the
Company), the Company, in its discretion, may deliver such Common Stock and/or cash to the spouse
or to any one or more dependents or relatives of the Participant, or if no spouse, dependent or
relative is known to the Company, then to such other person as the Company may designate.

     13. Transferability. Neither contributions credited to a Participant’s account nor
any rights to purchase or to receive shares under the Plan may be assigned, transferred, pledged or
otherwise disposed of in any way (other than by will, the laws of descent and distribution or as
provided in Section 12 hereof) by the Participant. Any such attempt at assignment, transfer,
pledge or other disposition shall be without effect, except that the Company may treat such act as
an election to withdraw funds in accordance with section 8 hereof.

     14. Use of Funds. All contributions received or held by the Company under the Plan
may be used by the Company for any corporate purpose, and the Company shall not be obligated to
segregate such contributions.

     15. Effect of Certain Changes. In the event of a Change in Capitalization or the
distribution of an extraordinary dividend, the Committee shall conclusively determine the
appropriate equitable adjustments, if any, to be made under the Plan, including without limitation
adjustments to the number of Common Stock which have been authorized for issuance under the Plan
but have not yet been placed under purchase rights, as well as the price per Common Stock covered
by each purchase right under the Plan which has not yet been exercised.

     16. Plan Amendment or Termination. The Board may terminate or amend the Plan at any
time and for any reason or no reason. Except as provided in Section 15 hereof, no such termination
can adversely affect purchase rights previously granted and no amendment may make any change in any
purchase right theretofore granted which adversely affects the rights of any Participant.

     17. Notices. All notices or other communications by a Participant to the Company
under or in connection with the Plan shall be deemed to have been duly given when received in the
form specified by the Company at the location, or by the person, designated by the Company for the
receipt thereof.

     18. Regulations and Other Approvals; Governing Law.

          a. This Plan and the rights of all persons claiming hereunder shall be construed and
determined in accordance with the laws of the Republic of Singapore without giving effect to the
choice of law principles thereof.

          b. The obligation of the Company to sell or deliver Common Stock with respect to purchase
rights

 

 

granted under the Plan shall be subject to all applicable laws, rules and regulations, and the
obtaining of all such approvals by governmental agencies as may be deemed necessary or appropriate
by the Committee.

     19. Effective Date. The Plan shall become effective upon the later to occur of (i)
the date of its adoption and (ii) the date on which it is approved by the stockholders of the
Company.EX-4.3

Exhibit 4.3

GIGAMEDIA LIMITED

2009 EQUITY INCENTIVE PLAN

     1. Purpose; Types of Awards; Construction.

     The purposes of the GigaMedia Limited 2009 Equity Incentive Plan (the “Plan”) are to afford an
incentive to non-employee directors, selected officers and other employees, advisors and
consultants of GigaMedia Limited (the “Company”), or any Subsidiary that now exists or hereafter is
organized, incorporated or acquired, to continue as non-employee directors, officers or employees,
advisors or consultants, as the case may be, to increase their efforts on behalf of the Company and
its Subsidiaries and to promote the success of the Company’s business. The Plan provides for the
grant of Options (including Incentive Stock Options and Nonqualified Stock Options), Stock
Appreciation Rights, Restricted Stock, Restricted Stock Units and Other Stock-Based Awards (each
term as defined herein).

     2. Definitions.

     For purposes of the Plan, the following terms shall be defined as set forth below:

          (a) “Award” means any Option, SAR, Restricted Stock, Restricted Stock Unit or Other
Stock-Based Award granted under the Plan.

          (b) “Award Agreement” means any written agreement, contract, or other instrument or document
evidencing an Award.

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

          (d) “Change in Control” means a change in control of the Company, which will be deemed to have
occurred if:

          (i) any “person,” as such term is used in Sections 13(d) and 14(d) of the
Exchange Act (other than (A) the Company, (B) any trustee or other fiduciary
holding securities under an employee benefit plan of the Company, and (C) any
corporation owned, directly or indirectly, by the shareholders of the Company in
substantially the same proportions as their ownership of Company Stock), 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 25% or more of
the combined voting power of the Company’s then outstanding voting securities
(excluding any person who becomes such a beneficial owner in connection with a
transaction immediately following which the individuals who comprise the Board
immediately prior thereto constitute at least a majority of the Board, the entity
surviving such transaction or, if the Company or the entity surviving the
transaction is then a subsidiary, the ultimate parent thereof);

          (ii) the following individuals cease for any reason to constitute a majority
of the number of directors then serving: individuals who, on the Effective Date,
constitute the Board and any new director (other than a director whose initial
assumption of office is in connection with an actual or threatened election
contest, including but not limited to a consent solicitation, relating to the
election of directors of the Company) whose appointment or election by the Board
or nomination for election by the Company’s shareholders was approved or
recommended by a vote of at least two-thirds (2/3) of the directors then still in
office who either were directors on the Effective Date or whose appointment,
election or nomination for election was previously so approved or recommended;

          (iii) there is consummated a merger or consolidation of the Company or any
direct or indirect subsidiary of the Company with any other corporation, other
than a merger or consolidation immediately following which the individuals who
comprise the Board immediately prior thereto constitute at least a majority of the
Board, the entity surviving such merger or consolidation or, if the Company or the
entity surviving such merger is then a subsidiary, the ultimate parent thereof; or

          (iv) the shareholders of the Company approve a plan of complete liquidation
of the Company or there is consummated an agreement for the sale or disposition by
the Company of all or substantially all of the Company’s assets (or any
transaction having a similar effect), other than a sale or disposition by the
Company of all or substantially all of the Company’s assets to an entity,
immediately following which the individuals who comprise the Board immediately
prior thereto constitute at least a majority of the board of directors of the
entity to which such assets are sold or disposed of or, if such entity is a
subsidiary, the ultimate parent thereof.

          (v) Notwithstanding the foregoing, a Change in Control shall not be deemed to
have occurred by virtue of the consummation of any transaction or series of
integrated transactions immediately following which the holders of the Company
Stock

 

 

immediately prior to such transaction or series of transactions continue to
have substantially the same proportionate ownership in an entity which owns all or
substantially all of the assets of the Company immediately following such
transaction or series of transactions.

          (e) “Code” means the Internal Revenue Code of 1986, as amended from time to time.

          (f) “Committee” means the committee of members of the Board appointed by the Board to
administer the Plan.

          (g) “Company” means GigaMedia Limited, a company incorporated under the Companies Act, Chapter
50 of Singapore, or any successor corporation.

          (h) “Company Stock” means the ordinary shares of the Company.

          (i) “Effective Date” means the date that the Plan was approved by the shareholders of the
Company.

          (j) “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time,
and as now or hereafter construed, interpreted and applied by regulations, rulings and cases.

          (k) “Fair Market Value” means, with respect to Company Stock or other property, the fair
market value of such Company Stock or other property determined by such methods or procedures as
shall be established from time to time by the Committee. Unless otherwise determined by the
Committee in good faith, the per share Fair Market Value of the Company Stock as of a particular
date shall be calculated as the mean between the highest and lowest reported sales price per share
of Company Stock on the national securities exchange on which the Company Stock is principally
traded, for the last preceding date on which there was a sale of such Company Stock on such
exchange.

          (l) “Grantee” means a person who, as a non-employee director, officer, other employee, advisor
or consultant of the Company or a Subsidiary, has been granted an Award under the Plan.

          (m) “Incentive Stock Option” or “ISO” means any Option intended to be and designated as an
incentive stock option within the meaning of Section 422 of the Code.

          (n) “Nonqualified Stock Option” or “NQSO” means any Option that is not designated as an ISO.

          (o) “Option” means a right, granted to a Grantee under Section 6(b), to purchase shares of
Company Stock. An Option may be either an ISO or an NQSO, provided that ISOs may be granted only
to employees of the Company or a Subsidiary.

          (p) “Other Stock-Based Award” means a right or other interest granted to a Grantee under
Section 6(f) that may be denominated or payable in, valued in whole or in part by reference to, or
otherwise based on, or related to, Company Stock, including but not limited to (i) unrestricted
Company Stock awarded as a bonus or upon the attainment of performance goals or otherwise as
permitted under the Plan, and (ii) a right granted to a Grantee to acquire Company Stock from the
Company containing terms and conditions prescribed by the Committee.

          (q) “Plan” means this GigaMedia Limited 2009 Equity Incentive Plan, as amended from time to
time.

          (r) “Plan Year” means a calendar year.

          (s) “Restricted Stock” means an Award of shares of Company Stock to a Grantee under Section
6(d) that may be subject to certain restrictions and to a risk of forfeiture.

          (t) “Restricted Stock Unit” means a right granted to a Grantee under Section 6(e) to receive
Company Stock or cash at the end of a specified deferral period, which right may be conditioned on
the satisfaction of specified performance or other criteria.

          (u) “Securities Act” means the United States Securities Act of 1933, as amended.

          (v) “Stock Appreciation Right” or “SAR” means the right, granted to a Grantee under Section
6(c), to be paid an amount measured by the appreciation in the Fair Market Value of Company Stock
from the date of grant to the date of exercise of the right.

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

 

 

     3. Administration.

     The Plan shall be administered by the Committee. The Committee shall have the authority in
its discretion, subject to and not inconsistent with the express provisions of the Plan, to
administer the Plan and to exercise all the powers and authorities either specifically granted to
it under the Plan or necessary or advisable in the administration of the Plan, including, without
limitation, the authority to grant Awards; to determine the persons to whom and the time or times
at which Awards shall be granted; to determine the type and number of Awards to be granted, the
number of shares of Company Stock to which an Award may relate and the terms, conditions,
restrictions and performance criteria relating to any Award, including whether the grant, vesting,
payment or other settlement of any Award may be subject to the attainment of performance goals; and
to determine whether, to what extent, and under what circumstances an Award may be settled,
cancelled, forfeited, exchanged, or surrendered; to make adjustments in the terms and conditions
of, and the performance goals (if any) included in, Awards; to construe and interpret the Plan and
any Award; to prescribe, amend and rescind rules and regulations relating to the Plan; to determine
the terms and provisions of the Award Agreements (which need not be identical for each Grantee); to
re-price (or cancel and re-grant) any Option or, if applicable, other Award at a lower exercise,
base or purchase price; and to make all other determinations deemed necessary or advisable for the
administration of the Plan, including without limitation the determination to delegate or authorize
any of the above-listed powers to a subcommittee of the Committee or to a committee comprised of
members of Company management.

     The Committee may appoint a chairperson and a secretary and may make such rules and
regulations for the conduct of its business as it shall deem advisable, and shall keep minutes of
its meetings. All determinations of the Committee shall be made by a majority of its members
either present in person or participating by conference telephone at a meeting or by written
consent. The Committee may delegate to a subcommittee of one or more of its members or to one or
more agents (including members of Company management) such duties as it may deem advisable, and the
Committee or any person or group to whom it has delegated duties as aforesaid may employ one or
more persons to render advice with respect to any responsibility the Committee or such person may
have under the Plan. All decisions, determinations and interpretations of the Committee shall be
final and binding on all persons, including but not limited to the Company, any subsidiary of the
Company or any Grantee (or any person claiming any rights under the Plan from or through any
Grantee) and any shareholder.

     No member of the Board or Committee shall be liable for any action taken or determination made
in good faith with respect to the Plan or any Award granted hereunder.

     4. Eligibility.

     Awards may be granted to selected non-employee directors, officers and other employees,
advisors or consultants of the Company or any Subsidiary, in the absolute discretion of the
Committee. In determining the persons to whom Awards shall be granted and the type of any Award
(including the number of shares to be covered by such Award), the Committee shall take into account
such factors as the Committee shall deem relevant in connection with accomplishing the purposes of
the Plan.

     5. Stock Subject to the Plan.

     The maximum number of shares of Company Stock reserved for the grant of Awards under the Plan
shall be 1,500,000 (all or any number of which may be granted as ISOs), subject to adjustment as
provided herein. Such shares may, in whole or in part, be shares that shall have been or may be
reacquired by the Company in the open market, in private transactions or otherwise. If any shares
of Company Stock subject to an Award are forfeited, cancelled, exchanged or surrendered or if an
Award terminates or expires without a distribution of shares to the Grantee, or if shares of
Company Stock are surrendered or withheld as payment of either the exercise price of an Award
and/or withholding taxes in respect of an Award, such shares shall, to the extent of any such
forfeiture, cancellation, exchange, surrender, withholding, termination or expiration, again be
available for Awards under the Plan. Upon the exercise of any Award granted in tandem with any
Awards such related Awards shall be cancelled to the extent of the number of shares of Company
Stock as to which the Award is exercised and, notwithstanding the foregoing, such number of shares
shall no longer be available for Awards under the Plan.

     In the event that the Committee shall determine that any dividend or other distribution
(whether in the form of cash, Company Stock, or other property), recapitalization, stock split,
reverse split, reorganization, merger, consolidation, spin-off, combination, repurchase, or share
exchange, or other similar corporate transaction or event, affects the Company Stock such that an
adjustment is appropriate in order to prevent dilution or enlargement of the rights of Grantees
under the Plan, then the Committee shall make such equitable changes or adjustments as it deems
necessary or appropriate to any or all of (i) the number and kind of shares of Company Stock or
other property (including cash) that may thereafter be issued in connection with Awards, (ii) the
number and kind of shares of Company Stock or other property (including cash) issued or issuable in
respect of outstanding Awards, (iii) the exercise price, grant price, or purchase price relating to
any Award; provided, that, with respect to ISOs, such adjustment shall be made in accordance with
Section 424(h) of the Code; and (iv) the performance goals applicable to outstanding Awards.

     6. Terms of Awards.

          (a) General. The Committee is authorized to grant the Awards described in this
Section 6, under such terms and conditions as deemed by the Committee to be consistent with the
purposes of the Plan. Each Award granted under the Plan shall be evidenced by an Award Agreement
containing such terms and

 

 

conditions applicable to such Award as the Committee shall determine at the date of grant or
thereafter. Subject to the terms of the Plan and any applicable Award Agreement, payments to be
made by the Company or a Subsidiary upon the grant, maturation, or exercise of an Award may be made
in such forms as the Committee shall determine at the date of grant or thereafter, including,
without limitation, cash, Company Stock, or other property, and may be made in a single payment or
transfer, in installments, or on a deferred basis. In addition to the foregoing, the Committee may
impose on any Award or the exercise thereof, at the date of grant or thereafter, such additional
terms and conditions, not inconsistent with the provisions of the Plan, as the Committee shall
determine.

          (b) Options. The Committee is authorized to grant Options to Grantees on the
following terms and conditions:

          (i) Type of Award. The Award Agreement evidencing the grant of an
Option under the Plan shall designate the Option as an ISO or an NQSO.

          (ii) Exercise Price. The exercise price per share of Company Stock
purchasable under an Option shall be determined by the Committee. The exercise
price for Company Stock subject to an Option may be paid in cash or by an exchange
of Company Stock previously owned by the Grantee, through a “broker cashless
exercise” procedure approved by the Committee (to the extent permitted by law), or
a combination of the above, in any case in an amount having a combined value equal
to such exercise price. An Award Agreement may provide that a Grantee may pay all
or a portion of the aggregate exercise price by having shares of Company Stock
with a Fair Market Value on the date of exercise equal to the aggregate exercise
price withheld by the Company.

          (iii) Term and Exercisability of Options. Options shall be
exercisable over the exercise period (which shall not exceed ten years from the
date of grant), at such times and upon such conditions as the Committee may
determine, as reflected in the Award Agreement; provided, that the Committee shall
have the authority to accelerate the exercisability of any outstanding Option at
such time and under such circumstances as it, in its sole discretion, deems
appropriate. An Option may be exercised to the extent of any or all full shares
of Company Stock as to which the Option has become exercisable, by giving written
notice of such exercise to the Committee or its designated agent.

          (iv) Special Provisions Applicable to Incentive Stock Options.
Notwithstanding any other provisions of the Plan, the following terms shall apply
to ISOs:

	 	(1)	 	ISOs may be granted only to Participants
who are employees of the Company or any Subsidiary.
	 
	 	(2)	 	The exercise price of an ISO shall be not
less than 100% of the Fair Market Value of the Company Stock as of
the date of grant; provided, that the exercise price of an ISO
granted to a “ten percent shareholder” (within the meaning of
422(c)(5) of the Code) shall not be less than 110% of the Fair
Market Value of the Company Stock as of the date of grant.
	 
	 	(3)	 	The term of an ISO granted to a ten
percent shareholder shall be no longer than five years from the date
of grant.
	 
	 	(4)	 	The aggregate Fair Market Value
(determined as of the date of grant) of shares of Company Stock with
respect to which ISOs are exercisable for the first time by a
Grantee during any calendar year (under the Plan or under any other
incentive stock option plan of the Company) shall not exceed
$100,000.
	 
	 	(5)	 	In the event that the Code or the
regulations promulgated thereunder applicable to ISOs are amended
after the Effective Date of the Plan in a manner that would cause
the provisions of this Section 6(b)(5) to be inconsistent with such
amended sections, such amended sections shall be automatically
incorporated into the Plan and shall apply to all ISOs to the extent
permitted by the Code.

To the extent that an Option intended to qualify as an Incentive Stock Option does
not qualify for such treatment, such Option shall be treated as a Nonqualified
Stock Option.

          (v) Other Provisions. Options may be subject to such other
conditions including, but not limited to, restrictions on transferability of the shares acquired upon exercise of such Options, as the Committee may prescribe in
its discretion or as may be required by applicable law.

          (c) SARs. The Committee is authorized to grant Stock Appreciation Rights to Grantees
on the following terms and conditions:

 

 

          (i) In General. Unless the Committee determines otherwise, an SAR
(1) granted in tandem with an NQSO may be granted at the time of grant of the
related NQSO or at any time thereafter or (2) granted in tandem with an ISO may
only be granted at the time of grant of the related ISO. An SAR granted in tandem
with an Option shall be exercisable only to the extent the underlying Option is
exercisable. Payment of an SAR may made in cash, Company Stock, or other property
as specified in the Award or determined by the Committee

          (ii) SARs. An SAR shall confer on the Grantee a right to receive an
amount with respect to each share subject thereto, upon exercise thereof, equal to
the excess of (1) the Fair Market Value of one share of Company Stock on the date
of exercise over (2) the grant price of the SAR (which in the case of an SAR
granted in tandem with an Option shall be equal to the exercise price of the
underlying Option, and which in the case of any other SAR shall be such price as
the Committee may determine; provided, that the per share exercise price of an SAR
may not be less than the Fair Market value of a share of Company Stock on the date
of grant).

          (iii) Term and Exercisability of SARs. SARs shall be exercisable
over the exercise period (which shall not exceed ten years from the date of
grant), at such times and upon such conditions as the Committee may determine, as
reflected in the Award Agreement; provided, that the Committee shall have the
authority to accelerate the exercisability of any outstanding SAR at such time and
under such circumstances as it, in its sole discretion, deems appropriate. An SAR
may be exercised to the extent of any or all full shares of Company Stock as to
which the SAR has become exercisable, by giving written notice of such exercise to
the Committee or its designated agent.

          (d) Restricted Stock. The Committee is authorized to grant Restricted Stock to
Grantees on the following terms and conditions:

          (i) Issuance and Restrictions. Restricted Stock shall be subject to
such restrictions on transferability and other restrictions, if any, as the
Committee may impose at the date of grant or thereafter, which restrictions may
lapse separately or in combination at such times, under such circumstances, in
such installments, or otherwise, as the Committee may determine. The Committee
may place restrictions on Restricted Stock that shall lapse, in whole or in part,
only upon the attainment of performance goals. Except to the extent restricted
under the Award Agreement relating to the Restricted Stock, a Grantee granted
Restricted Stock shall have all of the rights of a shareholder including, without
limitation, the right to vote Restricted Stock and the right to receive dividends
thereon.

          (ii) Forfeiture. Upon termination of employment with the Company and
its Subsidiaries, or upon termination of the director or independent contractor
relationship, as the case may be, during the applicable restriction period,
Restricted Stock and any accrued but unpaid dividends that are then subject to
restrictions shall be forfeited; provided, that the Committee may provide, by rule
or regulation or in any Award Agreement, or may determine in any individual case,
that restrictions or forfeiture conditions relating to Restricted Stock will be
waived in whole or in part in the event of terminations resulting from specified
causes, and the Committee may in other cases waive in whole or in part the
forfeiture of Restricted Stock.

          (iii) Certificates for Stock. Restricted Stock granted under the
Plan may be evidenced in such manner as the Committee shall determine. If
certificates representing Restricted Stock are registered in the name of the
Grantee, such certificates shall bear an appropriate legend referring to the
terms, conditions, and restrictions applicable to such Restricted Stock, and the
Company shall retain physical possession of the certificate.

          (iv) Dividends. Dividends paid on Restricted Stock shall be either
paid at the dividend payment date, or deferred for payment to such date as
determined by the Committee, in cash or in shares of unrestricted Company Stock
having a Fair Market Value equal to the amount of such dividends. Company Stock
distributed in connection with a stock split or stock dividend, and other property
distributed as a dividend, shall be subject to restrictions and a risk of
forfeiture to the same extent as the Restricted Stock with respect to which such
Company Stock or other property has been distributed.

          (e) Restricted Stock Units. The Committee is authorized to grant Restricted Stock
Units to Grantees on the following terms and conditions:

          (i) Award and Restrictions. Delivery of Company Stock or cash, as
determined by the Committee, will occur upon expiration of the deferral period
specified for Restricted Stock Units by the Committee. The Committee may place
restrictions on Restricted Stock Units that shall lapse, in whole or in part, only
upon the attainment of performance goals.

          (ii) Forfeiture. Upon termination of employment with the Company and
its Subsidiaries, or upon termination of the director or independent contractor

 

 

relationship, as the case may be, during the applicable deferral period or
portion thereof to which forfeiture conditions apply, or upon failure to satisfy
any other conditions precedent to the delivery of Company Stock or cash to which
such Restricted Stock Units relate, all Restricted Stock Units and any accrued but
unpaid dividend equivalents that are then subject to deferral or restriction shall
be forfeited; provided, that the Committee may provide, by rule or regulation or
in any Award Agreement, or may determine in any individual case, that restrictions
or forfeiture conditions relating to Restricted Stock Units will be waived in
whole or in part in the event of termination resulting from specified causes, and
the Committee may in other cases waive in whole or in part the forfeiture of
Restricted Stock Units.

          (iii) Dividend Equivalents. The Committee may in its discretion
determine whether Restricted Stock Units may be credited with dividend equivalents
at such time as dividends, whether in the form of cash, Company Stock or other
property, are paid with respect to the Company Stock. Any such dividend
equivalents shall be credited in the form of additional Restricted Stock Units and
shall subject to restrictions and a risk of forfeiture to the same extent as the
Restricted Stock Unit with respect to which such dividend equivalent was credited.

          (f) Other Stock-Based Awards. The Committee is authorized to grant Other Stock-Based
Awards to Grantees in such form as deemed by the Committee to be consistent with the purposes of
the Plan. Awards granted pursuant to this paragraph may be granted with value and payment
contingent upon performance goals. The Committee shall determine the terms and conditions of such
Awards at the date of grant or thereafter.

     7. Change in Control Provisions.

     Unless otherwise determined by the Committee and evidenced in an Award Agreement, in the event
of a Change of Control:

          (a) any Award carrying a right to exercise that was not previously vested and exercisable
shall become fully vested and exercisable; and

          (b) the restrictions, deferral limitations, payment conditions, and forfeiture conditions
applicable to any other Award granted under the Plan shall lapse and such Awards shall be deemed
fully vested, and any performance conditions imposed with respect to Awards shall be deemed to be
fully achieved.

     8. General Provisions.

          (a) Nontransferability. Unless otherwise provided in an Award Agreement, Awards shall
not be transferable by a Grantee except by will or the laws of descent and distribution and shall
be exercisable during the lifetime of a Grantee only by such Grantee or his guardian or legal
representative.

          (b) No Right to Continued Employment, etc. Nothing in the Plan or in any Award, any
Award Agreement or other agreement entered into pursuant hereto shall confer upon any Grantee the
right to continue in the employ of or to continue as a director of the Company or any Subsidiary or
to be entitled to any remuneration or benefits not set forth in the Plan or such Award Agreement or
other agreement or to interfere with or limit in any way the right of the Company or any such
Subsidiary to terminate such Grantee’s employment, or director or independent contractor
relationship.

          (c) Taxes. The Company or any Subsidiary is authorized to withhold from any Award
granted, any payment relating to an Award under the Plan, including from a distribution of Company
Stock, or any other payment to a Grantee, amounts of withholding and other taxes due in connection
with any transaction involving an Award, and to take such other action as the Committee may deem
advisable to enable the Company and Grantees to satisfy obligations for the payment of withholding
taxes and other tax obligations relating to any Award. This authority shall include authority to
withhold or receive Company Stock or other property and to make cash payments in respect thereof in
satisfaction of a Grantee’s tax obligations. The Committee may provide in the Award Agreement that
in the event that a Grantee is required to pay any amount to be withheld in connection with the
issuance of shares of Company Stock in settlement or exercise of an Award, the Grantee may satisfy
such obligation (in whole or in part) by electing to have a portion of the shares of Company Stock
to be received upon settlement or exercise of such Award equal to the minimum amount required to be
withheld.

          (d) Shareholder Approval; Amendment and Termination.

          (i) The Plan shall take effect upon its approval by the shareholders of the
Company.

          (ii) The Board may at any time and from time to time alter, amend, suspend,
or terminate the Plan in whole or in part; provided, however, that an amendment
that requires shareholder approval in order for the Plan to continue to comply
with any applicable law, regulation or stock exchange requirement shall not be
effective unless approved by the requisite vote of shareholders. Notwithstanding
the foregoing, no amendment

 

 

to or termination of the Plan shall affect adversely any of the rights of any
Grantee, without such Grantee’s consent, under any Award theretofore granted under
the Plan.

          (e) Expiration of Plan. Unless earlier terminated by the Board pursuant to the
provisions of the Plan, the Plan shall expire on the tenth anniversary of the Effective Date. No
Awards shall be granted under the Plan after such expiration date. The expiration of the Plan
shall not affect adversely any of the rights of any Grantee, without such Grantee’s consent, under
any Award theretofore granted.

          (f) No Rights to Awards; No Shareholder Rights. No Grantee shall have any claim to be
granted any Award under the Plan, and there is no obligation for uniformity of treatment of
Grantees. Except as provided specifically herein, a Grantee or a transferee of an Award shall
have no rights as a shareholder with respect to any shares covered by the Award until the date of
the issuance of a stock certificate to him for such shares.

          (g) Unfunded Status of Awards. The Plan is intended to constitute an “unfunded” plan
for incentive and deferred compensation. With respect to any payments not yet made to a Grantee
pursuant to an Award, nothing contained in the Plan or any Award shall give any such Grantee any
rights that are greater than those of a general creditor of the Company.

          (h) No Fractional Shares. No fractional shares of Company Stock shall be issued or
delivered pursuant to the Plan or any Award. The Committee shall determine whether cash, other
Awards, or other property shall be issued or paid in lieu of such fractional shares of Company
Stock or whether such fractional shares or any rights thereto shall be forfeited or otherwise
eliminated.

          (i) Regulations and Other Approvals.

          (i) The obligation of the Company to sell or deliver Company Stock with
respect to any Award granted under the Plan shall be subject to all applicable
laws, rules and regulations, including all applicable federal and state securities
laws, and the obtaining of all such approvals by governmental agencies as may be
deemed necessary or appropriate by the Committee.

          (ii) Each Award is subject to the requirement that, if at any time the
Committee determines, in its absolute discretion, that the listing, registration
or qualification of Company Stock issuable pursuant to the Plan is required by any
securities exchange or under any state or federal law, or the consent or approval
of any governmental regulatory body is necessary or desirable as a condition of,
or in connection with, the grant of an Award or the issuance of Company Stock, no
such Award shall be granted or payment made or Company Stock issued, in whole or
in part, unless listing, registration, qualification, consent or approval has been
effected or obtained free of any conditions not acceptable to the Committee.

          (iii) In the event that the disposition of Company Stock acquired pursuant to
the Plan is not covered by a then current registration statement under the
Securities Act and is not otherwise exempt from such registration, such Company
Stock shall be restricted against transfer to the extent required by the
Securities Act or regulations thereunder, and the Committee may require a Grantee
receiving Company Stock pursuant to the Plan, as a condition precedent to receipt
of such Company Stock, to represent to the Company in writing that the Company
Stock acquired by such Grantee is acquired for investment only and not with a view
to distribution.

          (iv) The Committee may require a Grantee receiving Company Stock pursuant to
the Plan, as a condition precedent to receipt of such Company Stock, to enter into
a shareholder agreement or “lock-up” agreement in such form as the Committee shall
determine is necessary or desirable to further the Company’s interests.

          (j) Disclaimer of Liability. Notwithstanding any provision of the Plan or any Award
Agreement to the contrary, the Committee and the Company shall not under any circumstances be held
liable for any costs, losses, expenses and damages whatsoever and howsoever arising in any event,
including but limited to the Company’s delay in issuing, or procuring the transfer of, shares of
Company Stock or applying for or procuring the listing of such shares on any securities exchange.

          (k) Governing Law. The Plan and all determinations made and actions taken pursuant
hereto shall be governed by the laws of the Republic of Singapore without giving effect to the
conflict of laws principles thereof. Grantees, by accepting Awards in accordance with the Plan,
submit to the exclusive jurisdiction of the courts of the Republic of Singapore.

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