Document:

exv10w52

 

Exhibit 10.52

Molecular Devices
Corporation

2005 Equity Incentive
Plan

ADOPTED: APRIL 13,
2005

APPROVED BY
STOCKHOLDERS:
MAY 26,
2005

TERMINATION DATE:
APRIL 12, 2015

		
	1.	
    General.

     
(a) Amendment and Restatement. The Plan is a
complete amendment and restatement of the Company’s 1995
Stock Option Plan that was previously adopted on
October 30, 1995 (as thereafter amended, the
“Prior Plan”). All outstanding awards
granted under the Prior Plan shall remain subject to the terms
of the Prior Plan. All Stock Awards granted subsequent to the
effective date of this Plan shall be subject to the terms of
this Plan.

     
(b) Eligible Stock Award Recipients. The persons
eligible to receive Stock Awards are Employees and Directors.

     
(c) Available Stock Awards. The Plan provides for
the grant of the following Stock Awards: (i) Incentive
Stock Options, (ii) Nonstatutory Stock Options,
(iii) Stock Purchase Awards, (iv) Stock Bonus Awards,
(v) Stock Appreciation Rights, (vi) Stock Unit Awards,
and (vii) Other Stock Awards.

     
(d) General Purpose. The Company, by means of the
Plan, seeks to secure and retain the services of the group of
persons eligible to receive Stock Awards as set forth in
Section 1(a), to provide incentives for such persons to
exert maximum efforts for the success of the Company and any
Affiliate and to provide a means by which such eligible
recipients may be given an opportunity to benefit from increases
in value of the Common Stock through the granting of Stock
Awards.

		
	2.	
    Definitions.

     
As used in the Plan, the following definitions shall apply to
the capitalized terms indicated below:

		
	 	     
    (a) “Affiliate” means (i) any
    corporation (other than the Company) in an unbroken chain of
    corporations ending with the Company, provided each corporation
    in the unbroken chain (other than the Company) owns, at the time
    of the determination, stock possessing fifty percent (50%) or
    more of the total combined voting power of all classes of stock
    in one of the other corporations in such chain, and
    (ii) any corporation (other than the Company) in an
    unbroken chain of corporations beginning with the Company,
    provided each corporation (other than the last corporation) in
    the unbroken chain owns, at the time of the determination, stock
    possessing fifty percent (50%) or more of the total combined
    voting power of all classes of stock in one of the other
    corporations in such chain. The Board shall have the authority
    to determine (i) the time or times at which the ownership
    tests are applied, and (ii) whether “Affiliate”
    includes entities other than corporations within the foregoing
    definition.
	 
	 	     
    (b) “Board” means the Board of Directors
    of the Company.
	 
	 	     
    (c) “Capitalization Adjustment” has the
    meaning ascribed to that term in Section 11(a).
	 
	 	     
    (d) “Change in Control” means the
    occurrence, in a single transaction or in a series of related
    transactions, of any one or more of the following events:

		
	 	     
    (i) any Exchange Act Person becomes the Owner, directly or
    indirectly, of securities of the Company representing more than
    fifty percent (50%) of the combined voting power of the
    Company’s then outstanding securities other than by virtue
    of a merger, consolidation or similar transaction.
    Notwithstanding the foregoing, a Change in Control shall not be
    deemed to occur (A) on account of the acquisition of
    securities of the Company by an investor, any affiliate thereof
    or

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    any other Exchange Act Person from the Company in a transaction
    or series of related transactions the primary purpose of which
    is to obtain financing for the Company through the issuance of
    equity securities or (B) solely because the level of
    Ownership held by any Exchange Act Person (the
    “Subject Person”) exceeds the designated
    percentage threshold of the outstanding voting securities as a
    result of a repurchase or other acquisition of voting securities
    by the Company reducing the number of shares outstanding,
    provided that if a Change in Control would occur (but for the
    operation of this sentence) as a result of the acquisition of
    voting securities by the Company, and after such share
    acquisition, the Subject Person becomes the Owner of any
    additional voting securities that, assuming the repurchase or
    other acquisition had not occurred, increases the percentage of
    the then outstanding voting securities Owned by the Subject
    Person over the designated percentage threshold, then a Change
    in Control shall be deemed to occur;
	 
	 	     
    (ii) there is consummated a merger, consolidation or
    similar transaction involving (directly or indirectly) the
    Company and, immediately after the consummation of such merger,
    consolidation or similar transaction, the stockholders of the
    Company immediately prior thereto do not Own, directly or
    indirectly, either (A) outstanding voting securities
    representing more than fifty percent (50%) of the combined
    outstanding voting power of the surviving Entity in such merger,
    consolidation or similar transaction or (B) more than fifty
    percent (50%) of the combined outstanding voting power of the
    parent of the surviving Entity in such merger, consolidation or
    similar transaction, in each case in substantially the same
    proportions as their Ownership of the outstanding voting
    securities of the Company immediately prior to such transaction;
	 
	 	     
    (iii) the stockholders of the Company approve or the Board
    approves a plan of complete dissolution or liquidation of the
    Company, or a complete dissolution or liquidation of the Company
    shall otherwise occur;
	 
	 	     
    (iv) there is consummated a sale, lease, exclusive license
    or other disposition of all or substantially all of the
    consolidated assets of the Company and its Subsidiaries, other
    than a sale, lease, license or other disposition of all or
    substantially all of the consolidated assets of the Company and
    its Subsidiaries to an Entity, more than fifty percent (50%) of
    the combined voting power of the voting securities of which are
    Owned by stockholders of the Company in substantially the same
    proportions as their Ownership of the outstanding voting
    securities of the Company immediately prior to such sale, lease,
    license or other disposition; or
	 
	 	     
    (v) individuals who, on the date this Plan is adopted by
    the Board, are members of the Board (the “Incumbent
    Board”) cease for any reason to constitute at least
    a majority of the members of the Board; provided,
    however, that if the appointment or election (or
    nomination for election) of any new Board member was approved or
    recommended by a majority vote of the members of the Incumbent
    Board then still in office, such new member shall, for purposes
    of this Plan, be considered as a member of the Incumbent Board.

		
	 	     
    The term Change in Control shall not include a sale of assets,
    merger or other transaction effected exclusively for the purpose
    of changing the domicile of the Company.
	 
	 	     
    Notwithstanding the foregoing or any other provision of this
    Plan, the definition of Change in Control (or any analogous
    term) in an individual written agreement between the Company or
    any Affiliate and the Participant shall supersede the foregoing
    definition with respect to Stock Awards subject to such
    agreement; provided, however, that if no definition of
    Change in Control or any analogous term is set forth in such an
    individual written agreement, the foregoing definition shall
    apply.
	 
	 	     
    (e) “Code” means the Internal Revenue Code
    of 1986, as amended.
	 
	 	     
    (f) “Committee” means a committee of one
    (1) or more members of the Board to whom authority has been
    delegated by the Board in accordance with Section 3(c).
	 
	 	     
    (g) “Common Stock” means the common stock
    of the Company.
	 
	 	     
    (h) “Company” means Molecular Devices
    Corporation, a Delaware corporation.

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    (i) “Continuous Service” means that the
    Participant’s service with the Company or an Affiliate,
    whether as an Employee or Director, is not interrupted or
    terminated. A change in the capacity in which the Participant
    renders service to the Company or an Affiliate as an Employee or
    Director or a change in the entity for which the Participant
    renders such service, provided that there is no interruption or
    termination of the Participant’s service with the Company
    or an Affiliate, shall not terminate a Participant’s
    Continuous Service. For example, a change in status from an
    employee of the Company to a Director shall not constitute an
    interruption of Continuous Service. To the extent permitted by
    law, the Board or the chief executive officer of the Company, in
    that party’s sole discretion, may determine whether
    Continuous Service shall be considered interrupted in the case
    of any leave of absence approved by that party, including sick
    leave, military leave or any other personal leave.
    Notwithstanding the foregoing, a leave of absence shall be
    treated as Continuous Service for purposes of vesting in a Stock
    Award only to such extent as may be provided in the
    Company’s leave of absence policy or in the written terms
    of the Participant’s leave of absence.
	 
	 	     
    (j) “Corporate Transaction” means the
    occurrence, in a single transaction or in a series of related
    transactions, of any one or more of the following events:

		
	 	     
    (i) a sale or other disposition of all or substantially
    all, as determined by the Board in its sole discretion, of the
    consolidated assets of the Company and its Subsidiaries;
	 
	 	     
    (ii) a sale or other disposition of at least ninety percent
    (90%) of the outstanding securities of the Company;
	 
	 	     
    (iii) the consummation of a merger, consolidation or
    similar transaction following which the Company is not the
    surviving corporation; or
	 
	 	     
    (iv) the consummation of a merger, consolidation or similar
    transaction following which the Company is the surviving
    corporation but the shares of Common Stock outstanding
    immediately preceding the merger, consolidation or similar
    transaction are converted or exchanged by virtue of the merger,
    consolidation or similar transaction into other property,
    whether in the form of securities, cash or otherwise.

		
	 	     
    (k) “Covered Employee” means the chief
    executive officer and the four (4) other highest
    compensated officers of the Company for whom total compensation
    is required to be reported to stockholders under the Exchange
    Act, as determined for purposes of Section 162(m) of the
    Code.
	 
	 	     
    (l) “Director” means a member of the Board.
	 
	 	     
    (m) “Disability” means the permanent and
    total disability of a person within the meaning of
    Section 22(e)(3) of the Code.
	 
	 	     
    (n) “Employee” means any person employed
    by the Company or an Affiliate. However, service solely as a
    Director, or payment of a fee for such services, shall not cause
    a Director to be considered an “Employee” for purposes
    of the Plan.
	 
	 	     
    (o) “Entity” means a corporation,
    partnership or other entity.
	 
	 	     
    (p) “Exchange Act” means the Securities
    Exchange Act of 1934, as amended.
	 
	 	     
    (q) “Exchange Act Person” means any
    natural person, Entity or “group” (within the meaning
    of Section 13(d) or 14(d) of the Exchange Act), except that
    “Exchange Act Person” shall not include (i) the
    Company or any Subsidiary of the Company, (ii) any employee
    benefit plan of the Company or any Subsidiary of the Company or
    any trustee or other fiduciary holding securities under an
    employee benefit plan of the Company or any Subsidiary of the
    Company, (iii) an underwriter temporarily holding
    securities pursuant to an offering of such securities,
    (iv) an Entity Owned, directly or indirectly, by the
    stockholders of the Company in substantially the same
    proportions as their Ownership of stock of the Company; or
    (v) any natural person, Entity or “group” (within
    the meaning of Section 13(d) or 14(d) of the Exchange Act)
    that, as of the effective date of the Plan as set forth in
    Section 14, is the Owner,

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    directly or indirectly, of securities of the Company
    representing more than fifty percent (50%) of the combined
    voting power of the Company’s then outstanding securities.
	 
	 	     
    (r) “Fair Market Value” means, as of any
    date, the value of the Common Stock determined as follows:

		
	 	     
    (i) If the Common Stock is listed on any established stock
    exchange or traded on the Nasdaq National Market or the Nasdaq
    SmallCap Market, the Fair Market Value of a share of Common
    Stock shall be the closing sales price for such stock (or the
    closing bid, if no sales were reported) as quoted on such
    exchange or market (or the exchange or market with the greatest
    volume of trading in the Common Stock) on the date of
    determination, as reported in The Wall Street Journal or
    such other source as the Board deems reliable. Unless otherwise
    provided by the Board, if there is no closing sales price (or
    closing bid if no sales were reported) for the Common Stock on
    the date of determination, then the Fair Market Value shall be
    the closing selling price (or closing bid if no sales were
    reported) on the last preceding date for which such quotation
    exists.
	 
	 	     
    (ii) In the absence of such markets for the Common Stock,
    the Fair Market Value shall be determined by the Board in good
    faith.

		
	 	     
    (s) “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.
	 
	 	     
    (t) “Non-Employee Director” means a
    Director who either (i) is not a current employee or
    officer of the Company or an Affiliate, does not receive
    compensation, either directly or indirectly, from the Company or
    an Affiliate for services rendered as a consultant or in any
    capacity other than as a Director (except for an amount as to
    which disclosure would not be required under Item 404(a) of
    Regulation S-K promulgated pursuant to the Securities Act
    (“Regulation S-K”)), does not
    possess an interest in any other transaction for which
    disclosure would be required under Item 404(a) of
    Regulation S-K, and is not engaged in a business
    relationship for which disclosure would be required pursuant to
    Item 404(b) of Regulation S-K; or (ii) is
    otherwise considered a “non-employee director” for
    purposes of Rule 16b-3.
	 
	 	     
    (u) “Nonstatutory Stock Option” means an
    Option not intended to qualify as an Incentive Stock Option.
	 
	 	     
    (v) “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.
	 
	 	     
    (w) “Option” means an Incentive Stock
    Option or a Nonstatutory Stock Option to purchase shares of
    Common Stock granted pursuant to the Plan.
	 
	 	     
    (x) “Option Agreement” means a written
    agreement between the Company and an Optionholder evidencing the
    terms and conditions of an Option grant. Each Option Agreement
    shall be subject to the terms and conditions of the Plan.
	 
	 	     
    (y) “Optionholder” means a person to whom
    an Option is granted pursuant to the Plan or, if applicable,
    such other person who holds an outstanding Option.
	 
	 	     
    (z) “Other Stock Award” means an award
    based in whole or in part by reference to the Common Stock which
    is granted pursuant to the terms and conditions of
    Section 7(e).
	 
	 	     
    (aa)“Other Stock Award Agreement” means a
    written agreement between the Company and a holder of an Other
    Stock Award evidencing the terms and conditions of an Other
    Stock Award grant. Each Other Stock Award Agreement shall be
    subject to the terms and conditions of the Plan.
	 
	 	     
    (bb) “Outside Director” means a Director
    who either (i) is not a current employee of the Company or
    an “affiliated corporation” (within the meaning of
    Treasury Regulations promulgated under Section 162(m) of
    the Code), is not a former employee of the Company or an
    “affiliated corporation” who receives compensation for
    prior services (other than benefits under a tax-qualified
    retirement plan)

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    during the taxable year, has not been an officer of the Company
    or an “affiliated corporation,” and does not receive
    remuneration from the Company or an “affiliated
    corporation,” either directly or indirectly, in any
    capacity other than as a Director, or (ii) is otherwise
    considered an “outside director” for purposes of
    Section 162(m) of the Code.
	 
	 	     
    (cc) “Own,” “Owned,”
    “Owner,” “Ownership” A person or Entity
    shall be deemed to “Own,” to have “Owned,”
    to be the “Owner” of, or to have acquired
    “Ownership” of securities if such person or Entity,
    directly or indirectly, through any contract, arrangement,
    understanding, relationship or otherwise, has or shares voting
    power, which includes the power to vote or to direct the voting,
    with respect to such securities.
	 
	 	     
    (dd) “Participant” means a person to whom
    a Stock Award is granted pursuant to the Plan or, if applicable,
    such other person who holds an outstanding Stock Award.
	 
	 	     
    (ee) “Performance Criteria” means the one
    or more criteria that the Board shall select for purposes of
    establishing the Performance Goals for a Performance Period. The
    Performance Criteria that shall be used to establish such
    Performance Goals may be based on any one of, or combination of,
    the following: (i) earnings per share; (ii) earnings
    before interest, taxes and depreciation; (iii) earnings
    before interest, taxes, depreciation and amortization (EBITDA);
    (iv) net earnings; (v) total shareholder return;
    (vi) return on equity; (vii) return on assets,
    investment, or capital employed; (viii) operating margin;
    (ix) gross margin; (x) operating income; (xi) net
    income (before or after taxes); (xii) net operating income;
    (xiii) net operating income after tax; (xiv) pre- and
    after-tax income; (xv) pre-tax profit; (xvi) operating
    cash flow; (xvii) sales or revenue targets;
    (xviii) increases in revenue or product revenue;
    (xix) expenses and cost reduction goals;
    (xx) improvement in or attainment of expense levels;
    (xxi) improvement in or attainment of working capital
    levels; (xxii) economic value added (or an equivalent
    metric); (xxiii) market share; (xxiv) cash flow;
    (xxv) cash flow per share; (xxvi) share price
    performance; (xxvii) debt reduction;
    (xxviii) implementation or completion of projects or
    processes; (xxix) customer satisfaction; (xxx) total
    stockholder return; (xxxi) stockholders’ equity; and
    (xxxii) other measures of performance selected by the
    Board. Partial achievement of the specified criteria may result
    in the payment or vesting corresponding to the degree of
    achievement as specified in the Stock Award Agreement. The Board
    shall, in its sole discretion, define the manner of calculating
    the Performance Criteria it selects to use for such Performance
    Period.
	 
	 	     
    (ff) “Performance Goals” means, for a
    Performance Period, the one or more goals established by the
    Board for the Performance Period based upon the Performance
    Criteria. The Board is authorized at any time in its sole
    discretion, to adjust or modify the calculation of a Performance
    Goal for such Performance Period in order to prevent the
    dilution or enlargement of the rights of Participants,
    (a) in the event of, or in anticipation of, any unusual or
    extraordinary corporate item, transaction, event or development;
    (b) in recognition of, or in anticipation of, any other
    unusual or nonrecurring events affecting the Company, or the
    financial statements of the Company, or in response to, or in
    anticipation of, changes in applicable laws, regulations,
    accounting principles, or business conditions; or (c) in
    view of the Board’s assessment of the business strategy of
    the Company, performance of comparable organizations, economic
    and business conditions, and any other circumstances deemed
    relevant. Specifically, the Board is authorized to make
    adjustment in the method of calculating attainment of
    Performance Goals and objectives for a Performance Period as
    follows: (i) to exclude the dilutive effects of
    acquisitions or joint ventures; (ii) to assume that any
    business divested by the Company achieved performance objectives
    at targeted levels during the balance of a Performance Period
    following such divestiture; and (iii) to exclude the effect
    of any change in the outstanding shares of common stock of the
    Company by reason of any stock dividend or split, stock
    repurchase, reorganization, recapitalization, merger,
    consolidation, spin-off, combination or exchange of shares or
    other similar corporate change, or any distributions to common
    shareholders other than regular cash dividends. In addition, the
    Board is authorized to make adjustment in the method of
    calculating attainment of Performance Goals and objectives for a
    Performance Period as follows: (i) to exclude restructuring
    and/or other nonrecurring charges; (ii) to exclude exchange
    rate effects, as applicable, for non-U.S. dollar
    denominated net sales and operating earnings; (iii) to
    exclude the effects of changes to generally accepted accounting
    standards required by

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    the Financial Accounting Standards Board; (iv) to exclude
    the effects to any statutory adjustments to corporate tax rates;
    (v) to exclude the impact of any “extraordinary
    items” as determined under generally accepted accounting
    principles; and (vi) to exclude any other unusual,
    non-recurring gain or loss or other extraordinary item.
	 
	 	     
    (gg) “Performance Period” means the one or
    more periods of time, which may be of varying and overlapping
    durations, as the Board may select, over which the attainment of
    one or more Performance Goals will be measured for the purpose
    of determining a Participant’s right to and the payment of
    a Stock Award.
	 
	 	     
    (hh) “Plan” means this Molecular Devices
    Corporation 2005 Equity Incentive Plan.
	 
	 	     
    (ii) “Rule 16b-3” means
    Rule 16b-3 promulgated under the Exchange Act or any
    successor to Rule 16b-3, as in effect from time to time.
	 
	 	     
    (jj) “Securities Act” means the Securities
    Act of 1933, as amended.
	 
	 	     
    (kk) “Stock Appreciation Right” means a
    right to receive the appreciation on Common Stock that is
    granted pursuant to the terms and conditions of
    Section 7(d).
	 
	 	     
    (ll) “Stock Appreciation Right Agreement”
    means a written agreement between the Company and a holder
    of a Stock Appreciation Right evidencing the terms and
    conditions of a Stock Appreciation Right grant. Each Stock
    Appreciation Right Agreement shall be subject to the terms and
    conditions of the Plan.
	 
	 	     
    (mm) “Stock Award” means any right granted
    under the Plan, including an Option, a Stock Purchase Award,
    Stock Bonus Award, a Stock Appreciation Right, a Stock Unit
    Award, or any Other Stock Award.
	 
	 	     
    (nn) “Stock Award Agreement” means a
    written agreement between the Company and a Participant
    evidencing the terms and conditions of a Stock Award grant. Each
    Stock Award Agreement shall be subject to the terms and
    conditions of the Plan.
	 
	 	     
    (oo) “Stock Bonus Award” means an award of
    shares of Common Stock which is granted pursuant to the terms
    and conditions of Section 7(b).
	 
	 	     
    (pp) “Stock Bonus Award Agreement” means a
    written agreement between the Company and a holder of a Stock
    Bonus Award evidencing the terms and conditions of a Stock Bonus
    Award grant. Each Stock Bonus Award Agreement shall be subject
    to the terms and conditions of the Plan.
	 
	 	     
    (qq) “Stock Purchase Award” means an award
    of shares of Common Stock which is granted pursuant to the terms
    and conditions of Section 7(a).
	 
	 	     
    (rr) “Stock Purchase Award Agreement”
    means a written agreement between the Company and a holder
    of a Stock Purchase Award evidencing the terms and conditions of
    a Stock Purchase Award grant. Each Stock Purchase Award
    Agreement shall be subject to the terms and conditions of the
    Plan.
	 
	 	     
    (ss) “Stock Unit Award” means a right to
    receive shares of Common Stock which is granted pursuant to the
    terms and conditions of Section 7(c).
	 
	 	     
    (tt) “Stock Unit Award Agreement” means a
    written agreement between the Company and a holder of a Stock
    Unit Award evidencing the terms and conditions of a Stock Unit
    Award grant. Each Stock Unit Award Agreement shall be subject to
    the terms and conditions of the Plan.
	 
	 	     
    (uu) “Subsidiary” means, with respect to
    the Company, (i) any corporation of which more than fifty
    percent (50%) of the outstanding capital stock having ordinary
    voting power to elect a majority of the board of directors of
    such corporation (irrespective of whether, at the time, stock of
    any other class or classes of such corporation shall have or
    might have voting power by reason of the happening of any
    contingency) is at the time, directly or indirectly, Owned by
    the Company, and (ii) any partnership in which the Company
    has a direct or indirect interest (whether in the form of voting
    or participation in profits or capital contribution) of more
    than fifty percent (50%).

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    (vv) “Ten Percent Stockholder” means a
    person who Owns (or is deemed to Own pursuant to
    Section 424(d) of the Code) stock possessing more than ten
    percent (10%) of the total combined voting power of all classes
    of stock of the Company or any Affiliate.

		
	3.	
    Administration.

     
(a) Administration by Board. The Board shall
administer the Plan unless and until the Board delegates
administration of the Plan to a Committee, as provided in
Section 3(c).

     
(b) Powers of Board. The Board shall have the power,
subject to, and within the limitations of, the express
provisions of the Plan:

		
	 	     
    (i) To determine from time to time (1) which of the
    persons eligible under the Plan shall be granted Stock Awards;
    (2) when and how each Stock Award shall be granted;
    (3) what type or combination of types of Stock Award shall
    be granted; (4) the provisions of each Stock Award granted
    (which need not be identical), including the time or times when
    a person shall be permitted to receive Common Stock pursuant to
    a Stock Award; and (5) the number of shares of Common Stock
    with respect to which a Stock Award shall be granted to each
    such person.
	 
	 	     
    (ii) To construe and interpret the Plan and Stock Awards
    granted under it, and to establish, amend and revoke rules and
    regulations for its administration. The Board, in the exercise
    of this power, may correct any defect, omission or inconsistency
    in the Plan or in any Stock Award Agreement, in a manner and to
    the extent it shall deem necessary or expedient to make the Plan
    fully effective.
	 
	 	     
    (iii) To amend the Plan or a Stock Award as provided in
    Section 12.
	 
	 	     
    (iv) To terminate or suspend the Plan as provided in
    Section 13.
	 
	 	     
    (v) Generally, to exercise such powers and to perform such
    acts as the Board deems necessary or expedient to promote the
    best interests of the Company and that are not in conflict with
    the provisions of the Plan.
	 
	 	     
    (vi) To adopt such procedures and sub-plans as are
    necessary or appropriate to permit participation in the Plan by
    Employees who are foreign nationals or employed outside the
    United States.

     
(c) Delegation to Committee.

		
	 	     
    (i) General. The Board may delegate some or all of
    the administration of the Plan to a Committee or Committees. If
    administration is delegated to a Committee, the Committee shall
    have, in connection with the administration of the Plan, the
    powers theretofore possessed by the Board that have been
    delegated to the Committee, including the power to delegate to a
    subcommittee any of the administrative powers the Committee is
    authorized to exercise (and references in this Plan to the Board
    shall thereafter be to the Committee or subcommittee), subject,
    however, to such resolutions, not inconsistent with the
    provisions of the Plan, as may be adopted from time to time by
    the Board. The Board may retain the authority to concurrently
    administer the Plan with the Committee and may, at any time,
    revest in the Board some or all of the powers previously
    delegated.
	 
	 	     
    (ii) Section 162(m) and Rule 16b-3
    Compliance. In the sole discretion of the Board, the
    Committee may consist solely of two or more Outside Directors,
    in accordance with Section 162(m) of the Code, and/or
    solely of two or more Non-Employee Directors, in accordance with
    Rule 16b-3. In addition, the Board or the Committee, in its
    sole discretion, may (1) delegate to a committee of one or
    more members of the Board who need not be Outside Directors the
    authority to grant Stock Awards to eligible persons who are
    either (a) not then Covered Employees and are not expected
    to be Covered Employees at the time of recognition of income
    resulting from such Stock Award, or (b) not persons with
    respect to whom the Company wishes to comply with
    Section 162(m) of the Code, and/or (2) delegate to a
    committee of one or more members of the Board who need not be
    Non-Employee Directors the authority to grant Stock Awards to
    eligible persons who are not then subject to Section 16 of
    the Exchange Act.

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(d) Delegation to an Officer. The Board may delegate
to one or more Officers of the Company the authority to do one
or both of the following (i) designate Officers and
Employees of the Company or any of its Subsidiaries to be
recipients of Stock Awards and the terms thereof, and
(ii) determine the number of shares of Common Stock to be
subject to such Stock Awards granted to such Officers and
Employees of the Company; provided, however, that the
Board resolutions regarding such delegation shall specify the
total number of shares of Common Stock that may be subject to
the Stock Awards granted by such Officer and that such Officer
may not grant a Stock Award to himself or herself.
Notwithstanding anything to the contrary in this
Section 3(d), the Board may not delegate to an Officer
authority to determine the Fair Market Value of the Common Stock
pursuant to Section 2(r)(ii) above.

     
(e) Effect of Board’s Decision. All
determinations, interpretations and constructions made by the
Board in good faith shall not be subject to review by any person
and shall be final, binding and conclusive on all persons.

		
	4.	
    Shares Subject to the
    Plan.

     
(a) Share Reserve. Subject to the provisions of
Section 11(a) relating to Capitalization Adjustments, the
number of shares of Common Stock that may be issued pursuant to
Stock Awards shall not exceed, in the aggregate, four million
three hundred and thirty-three thousand and eleven (4,333,011)
shares of Common Stock.

     
(b) Reversion of Shares to the Share Reserve. If any
Stock Award shall for any reason expire or otherwise terminate,
in whole or in part, without having been exercised in full, or
if any shares of Common Stock issued to a Participant pursuant
to a Stock Award are forfeited to or repurchased by the Company,
including, but not limited to, any repurchase or forfeiture
caused by the failure to meet a contingency or condition
required for the vesting of such shares, then the shares of
Common Stock not issued under such Stock Award, or forfeited to
or repurchased by the Company, shall revert to and again become
available for issuance under the Plan. If any shares subject to
a Stock Award are not delivered to a Participant because such
shares are withheld for the payment of taxes or the Stock Award
is exercised through a reduction of shares subject to the Stock
Award (i.e., “net exercised”), the number of
shares that are not delivered to the Participant shall remain
available for issuance under the Plan. If the exercise price of
any Stock Award is satisfied by tendering shares of Common Stock
held by the Participant (either by actual delivery or
attestation), then the number of shares so tendered shall remain
available for issuance under the Plan. Notwithstanding anything
to the contrary in this Section 4(b), subject to the
provisions of Section 11(a) relating to Capitalization
Adjustments the aggregate maximum number of shares of Common
Stock that may be issued pursuant to the exercise of Incentive
Stock Options shall be four million three hundred and
thirty-three thousand and eleven (4,333,011) shares of Common
Stock plus the amount of any increase in the number of shares
that may be available for issuance pursuant to Stock Awards
pursuant to Section 4(a).

     
(c) Source of Shares. The stock issuable under the
Plan shall be shares of authorized but unissued or reacquired
Common Stock, including shares repurchased by the Company on the
open market.

		
	5.	
    Eligibility.

     
(a) Eligibility for Specific Stock Awards. Incentive
Stock Options may be granted only to Employees. Stock Awards
other than Incentive Stock Options may be granted to Employees
and Directors.

     
(b) Ten Percent Stockholders. A Ten Percent
Stockholder shall not be granted an Incentive Stock Option
unless the exercise price of such Option is at least one hundred
ten percent (110%) of the Fair Market Value of the Common Stock
on the date of grant and the Option is not exercisable after the
expiration of five (5) years from the date of grant.

     
(c) Section 162(m) Limitation on Annual Grants.
Subject to the provisions of Section 11(a) relating to
Capitalization Adjustments, at such time as the Company may be
subject to the applicable provisions of Section 162(m) of
the Code, no Employee shall be eligible to be granted Stock
Awards whose value is determined by reference to an increase
over an exercise or strike price of at least one hundred percent
(100%)

8

 

of the Fair Market Value of the Common Stock on the date the
Stock Award is granted covering more than five hundred thousand
(500,000) shares of Common Stock during any calendar year.

		
	6.	
    Option
    Provisions.

     
Each Option shall be in such form and shall contain such terms
and conditions as the Board shall deem appropriate. All Options
shall be separately designated Incentive Stock Options or
Nonstatutory Stock Options at the time of grant, and, if
certificates are issued, a separate certificate or certificates
shall be issued for shares of Common Stock purchased on exercise
of each type of Option. The provisions of separate Options need
not be identical; provided, however, that each Option
Agreement shall include (through incorporation of provisions
hereof by reference in the Option or otherwise) the substance of
each of the following provisions:

		
	 	     
    (a) Term. The Board shall determine the term of an
    Option; provided, however, that subject to the provisions
    of Section 5(b) regarding Ten Percent Stockholders, no
    Incentive Stock Option shall be exercisable after the expiration
    of ten (10) years from the date of grant.
	 
	 	     
    (b) Exercise Price of an Incentive Stock Option.
    Subject to the provisions of Section 5(b) regarding Ten
    Percent Stockholders, the exercise price of each Incentive Stock
    Option shall be not less than one hundred percent (100%) of the
    Fair Market Value of the Common Stock subject to the Option on
    the date the Option is granted. Notwithstanding the foregoing,
    an Incentive Stock Option may be granted with an exercise price
    lower than that set forth in the preceding sentence if such
    Option is granted pursuant to an assumption or substitution for
    another option in a manner consistent with the provisions of
    Section 424(a) of the Code.
	 
	 	     
    (c) Exercise Price of a Nonstatutory Stock Option.
    The exercise price of each Nonstatutory Stock Option shall be
    not less than one hundred percent (100%) of the Fair Market
    Value of the Common Stock subject to the Option on the date the
    Option is granted. Notwithstanding the foregoing, a Nonstatutory
    Stock Option may be granted with an exercise price lower than
    that set forth in the preceding sentence if such Option is
    granted pursuant to an assumption or substitution for another
    option in a manner consistent with the provisions of
    Section 424(a) of the Code.
	 
	 	     
    (d) Consideration. The purchase price of Common
    Stock acquired pursuant to the exercise of an Option shall be
    paid, to the extent permitted by applicable law and as
    determined by the Board in its sole discretion, by any
    combination of the methods of payment set forth below. The Board
    shall have the authority to grant Options that do not permit all
    of the following methods of payment (or otherwise restrict the
    ability to use certain methods) and to grant Options that
    require the consent of the Company to utilize a particular
    method of payment. The methods of payment permitted by this
    Section 6(d) are:

		
	 	     
    (i) by cash or check;
	 
	 	     
    (ii) pursuant to a program developed under
    Regulation T as promulgated by the Federal Reserve Board
    that, prior to the issuance of Common Stock, results in either
    the receipt of cash (or check) by the Company or the receipt of
    irrevocable instructions to pay the aggregate exercise price to
    the Company from the sales proceeds;
	 
	 	     
    (iii) by delivery to the Company (either by actual delivery
    or attestation) of shares of Common Stock;
	 
	 	     
    (iv) by a “net exercise” arrangement pursuant to
    which the Company will reduce the number of shares of Common
    Stock issued upon exercise by the largest whole number of shares
    with a Fair Market Value that does not exceed the aggregate
    exercise price; provided, however, the Company shall
    accept a cash or other payment from the Participant to the
    extent of any remaining balance of the aggregate exercise price
    not satisfied by such holding back of whole shares; provided,
    however, shares of Common Stock will no longer be
    outstanding under an Option and will not be exercisable
    thereafter to the extent that (i) shares are used to pay
    the exercise price pursuant to the “net exercise,”
    (ii) shares are delivered to the Participant as a result of
    such exercise, and (iii) shares are withheld to satisfy tax
    withholding obligations; or

9

 

		
	 	     
    (v) in any other form of legal consideration that may be
    acceptable to the Board.

		
	 	     
    (e) Transferability of Options. The Board may, in
    its sole discretion, impose such limitations on the
    transferability of Options as the Board shall determine. In the
    absence of such a determination by the Board to the contrary,
    the following restrictions on the transferability of Options
    shall apply:

		
	 	     
    (i) Restrictions on Transfer. An Option shall not be
    transferable except by will or by the laws of descent and
    distribution and shall be exercisable during the lifetime of the
    Optionholder only by the Optionholder.
	 
	 	     
    (ii) Domestic Relations Orders. Notwithstanding the
    foregoing, an Option may be transferred pursuant to a domestic
    relations order.
	 
	 	     
    (iii) Beneficiary Designation. Notwithstanding the
    foregoing, the Optionholder may, by delivering written notice to
    the Company, in a form provided by or otherwise satisfactory to
    the Company, designate a third party who, in the event of the
    death of the Optionholder, shall thereafter be entitled to
    exercise the Option.

		
	 	     
    (f) Vesting Generally. The total number of shares of
    Common Stock subject to an Option may vest and therefore become
    exercisable in periodic installments that may or may not be
    equal. The Option may be subject to such other terms and
    conditions on the time or times when it may or may not be
    exercised (which may be based on performance or other criteria)
    as the Board may deem appropriate. The vesting provisions of
    individual Options may vary. The provisions of this
    Section 6(f) are subject to any Option provisions governing
    the minimum number of shares of Common Stock as to which an
    Option may be exercised.
	 
	 	     
    (g) Termination of Continuous Service. In the event
    that an Optionholder’s Continuous Service terminates (other
    than upon the Optionholder’s death or Disability), the
    Optionholder may exercise his or her Option (to the extent that
    the Optionholder was entitled to exercise such Option as of the
    date of termination of Continuous Service) but only within such
    period of time ending on the earlier of (i) the date three
    (3) months following the termination of the
    Optionholder’s Continuous Service (or such longer or
    shorter period specified in the Option Agreement), or
    (ii) the expiration of the term of the Option as set forth
    in the Option Agreement. If, after termination of Continuous
    Service, the Optionholder does not exercise his or her Option
    within the time specified herein or in the Option Agreement (as
    applicable), the Option shall terminate.
	 
	 	     
    (h) Extension of Termination Date. An
    Optionholder’s Option Agreement may provide that if the
    exercise of the Option following the termination of the
    Optionholder’s Continuous Service (other than upon the
    Optionholder’s death or Disability or upon a Change in
    Control) would be prohibited at any time solely because the
    issuance of shares of Common Stock would violate the
    registration requirements under the Securities Act, then the
    Option shall terminate on the earlier of (i) the expiration
    of a period of three (3) months after the termination of
    the Optionholder’s Continuous Service during which the
    exercise of the Option would not be in violation of such
    registration requirements, or (ii) the expiration of the
    term of the Option as set forth in the Option Agreement.
	 
	 	     
    (i) Disability of Optionholder. In the event that an
    Optionholder’s Continuous Service terminates as a result of
    the Optionholder’s Disability, the Optionholder may
    exercise his or her Option (to the extent that the Optionholder
    was entitled to exercise such Option as of the date of
    termination of Continuous Service), but only within such period
    of time ending on the earlier of (i) the date twelve
    (12) months following such termination of Continuous
    Service (or such longer or shorter period specified in the
    Option Agreement), or (ii) the expiration of the term of
    the Option as set forth in the Option Agreement. If, after
    termination of Continuous Service, the Optionholder does not
    exercise his or her Option within the time specified herein or
    in the Option Agreement (as applicable), the Option shall
    terminate.

10

 

		
	 	     
    (j) Death of Optionholder. In the event that
    (i) an Optionholder’s Continuous Service terminates as
    a result of the Optionholder’s death, or (ii) the
    Optionholder dies within the period (if any) specified in the
    Option Agreement after the termination of the
    Optionholder’s Continuous Service for a reason other than
    death, then the Option may be exercised (to the extent the
    Optionholder was entitled to exercise such Option as of the date
    of death) by the Optionholder’s estate, by a person who
    acquired the right to exercise the Option by bequest or
    inheritance or by a person designated to exercise the option
    upon the Optionholder’s death, but only within the period
    ending on the earlier of (i) the date eighteen
    (18) months following the date of death (or such longer or
    shorter period specified in the Option Agreement), or
    (ii) the expiration of the term of such Option as set forth
    in the Option Agreement. If, after the Optionholder’s
    death, the Option is not exercised within the time specified
    herein or in the Option Agreement (as applicable), the Option
    shall terminate.
	 
	 	     
    (k) Early Exercise. The Option may include a
    provision whereby the Optionholder may elect at any time before
    the Optionholder’s Continuous Service terminates to
    exercise the Option as to any part or all of the shares of
    Common Stock subject to the Option prior to the full vesting of
    the Option. Any unvested shares of Common Stock so purchased may
    be subject to a repurchase option in favor of the Company or to
    any other restriction the Board determines to be appropriate.
    The Company shall not be required to exercise its repurchase
    option until at least six (6) months (or such longer or
    shorter period of time necessary to avoid a charge to earnings
    for financial accounting purposes) have elapsed following
    exercise of the Option unless the Board otherwise specifically
    provides in the Option.

		
	7.	
    Provisions of Stock
    Awards other than Options.

     
(a) Stock Purchase Awards. Each Stock Purchase Award
Agreement shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate. At the
Board’s election, shares of Common Stock may be
(i) held in book entry form subject to the Company’s
instructions until any restrictions relating to the Stock
Purchase Award lapse; or (ii) evidenced by a certificate,
which certificate shall be held in such form and manner as
determined by the Board. The terms and conditions of Stock
Purchase Award Agreements may change from time to time, and the
terms and conditions of separate Stock Purchase Award Agreements
need not be identical, provided, however, that each Stock
Purchase Award Agreement shall include (through incorporation of
the provisions hereof by reference in the agreement or
otherwise) the substance of each of the following provisions:

		
	 	     
    (i) Purchase Price. At the time of the grant of a
    Stock Purchase Award, the Board will determine the price to be
    paid by the Participant for each share subject to the Stock
    Purchase Award. To the extent required by applicable law, the
    price to be paid by the Participant for each share of the Stock
    Purchase Award will not be less than the par value of a share of
    Common Stock.
	 
	 	     
    (ii) Consideration. At the time of the grant of a
    Stock Purchase Award, the Board will determine the consideration
    permissible for the payment of the purchase price of the Stock
    Purchase Award. The purchase price of Common Stock acquired
    pursuant to the Stock Purchase Award shall be paid either:
    (i) in cash or by check at the time of purchase,
    (ii) by past services rendered to the Company, or
    (iii) in any other form of legal consideration that may be
    acceptable to the Board in its sole discretion and permissible
    under applicable law.
	 
	 	     
    (iii) Vesting. Shares of Common Stock acquired under
    a Stock Purchase Award may be subject to a share repurchase
    right or option in favor of the Company in accordance with a
    vesting schedule to be determined by the Board.
	 
	 	     
    (iv) Termination of Participant’s Continuous
    Service. In the event that a Participant’s Continuous
    Service terminates, the Company shall have the right, but not
    the obligation, to repurchase or otherwise reacquire, any or all
    of the shares of Common Stock held by the Participant that have
    not vested as of the date of termination under the terms of the
    Stock Purchase Award Agreement. At the Board’s election,
    the price paid for all shares of Common Stock so repurchased or
    reacquired by the Company may be at the lesser of: (i) the
    Fair Market Value on the relevant date, or (ii) the
    Participant’s original cost for such shares. The Company
    shall not be required to exercise its repurchase or
    reacquisition option until at

11

 

		
	 	
    least six (6) months (or such longer or shorter period of
    time necessary to avoid a charge to earnings for financial
    accounting purposes) have elapsed following the
    Participant’s purchase of the shares of stock acquired
    pursuant to the Stock Purchase Award unless otherwise determined
    by the Board or provided in the Stock Purchase Award Agreement.
	 
	 	     
    (v) Transferability. Rights to purchase or receive
    shares of Common Stock granted under a Stock Purchase Award
    shall be transferable by the Participant only upon such terms
    and conditions as are set forth in the Stock Purchase Award
    Agreement, as the Board shall determine in its sole discretion,
    and so long as Common Stock awarded under the Stock Purchase
    Award remains subject to the terms of the Stock Purchase Award
    Agreement.

     
(b) Stock Bonus Awards. Each Stock Bonus Award
Agreement shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate. At the
Board’s election, shares of Common Stock may be
(i) held in book entry form subject to the Company’s
instructions until any restrictions relating to the Stock Bonus
Award lapse; or (ii) evidenced by a certificate, which
certificate shall be held in such form and manner as determined
by the Board. The terms and conditions of Stock Bonus Award
Agreements may change from time to time, and the terms and
conditions of separate Stock Bonus Award Agreements need not be
identical, provided, however, that each Stock Bonus Award
Agreement shall include (through incorporation of provisions
hereof by reference in the agreement or otherwise) the substance
of each of the following provisions:

		
	 	     
    (i) Consideration. A Stock Bonus Award may be
    awarded in consideration for (i) past services actually
    rendered to the Company or an Affiliate, or (ii) any other
    form of legal consideration that may be acceptable to the Board
    in its sole discretion and permissible under applicable law.
	 
	 	     
    (ii) Vesting. Shares of Common Stock awarded under
    the Stock Bonus Award Agreement may be subject to forfeiture to
    the Company in accordance with a vesting schedule to be
    determined by the Board.
	 
	 	     
    (iii) Termination of Participant’s Continuous
    Service. In the event a Participant’s Continuous
    Service terminates, the Company may receive via a forfeiture
    condition, any or all of the shares of Common Stock held by the
    Participant which have not vested as of the date of termination
    of Continuous Service under the terms of the Stock Bonus Award
    Agreement.
	 
	 	     
    (iv) Transferability. Rights to acquire shares of
    Common Stock under the Stock Bonus Award Agreement shall be
    transferable by the Participant only upon such terms and
    conditions as are set forth in the Stock Bonus Award Agreement,
    as the Board shall determine in its sole discretion, so long as
    Common Stock awarded under the Stock Bonus Award Agreement
    remains subject to the terms of the Stock Bonus Award Agreement.

     
(c) Stock Unit Awards. Each Stock Unit Award
Agreement shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate. The terms and
conditions of Stock Unit Award Agreements may change from time
to time, and the terms and conditions of separate Stock Unit
Award Agreements need not be identical, provided,
however, that each Stock Unit Award Agreement shall include
(through incorporation of the provisions hereof by reference in
the agreement or otherwise) the substance of each of the
following provisions:

		
	 	     
    (i) Consideration. At the time of grant of a Stock
    Unit Award, the Board will determine the consideration, if any,
    to be paid by the Participant upon delivery of each share of
    Common Stock subject to the Stock Unit Award. The consideration
    to be paid (if any) by the Participant for each share of Common
    Stock subject to a Stock Unit Award may be paid in any form of
    legal consideration that may be acceptable to the Board in its
    sole discretion and permissible under applicable law.
	 
	 	     
    (ii) Vesting. At the time of the grant of a Stock
    Unit Award, the Board may impose such restrictions or conditions
    to the vesting of the Stock Unit Award as it, in its sole
    discretion, deems appropriate.
	 
	 	     
    (iii) Payment. A Stock Unit Award may be settled by
    the delivery of shares of Common Stock, their cash equivalent,
    any combination thereof or in any other form of consideration,
    as determined by the Board and contained in the Stock Unit Award
    Agreement.

12

 

		
	 	     
    (iv) Additional Restrictions. At the time of the
    grant of a Stock Unit Award, the Board, as it deems appropriate,
    may impose such restrictions or conditions that delay the
    delivery of the shares of Common Stock (or their cash
    equivalent) subject to a Stock Unit Award after the vesting of
    such Stock Unit Award.
	 
	 	     
    (v) Dividend Equivalents. Dividend equivalents may
    be credited in respect of shares of Common Stock covered by a
    Stock Unit Award, as determined by the Board and contained in
    the Stock Unit Award Agreement. At the sole discretion of the
    Board, such dividend equivalents may be converted into
    additional shares of Common Stock covered by the Stock Unit
    Award in such manner as determined by the Board. Any additional
    shares covered by the Stock Unit Award credited by reason of
    such dividend equivalents will be subject to all the terms and
    conditions of the underlying Stock Unit Award Agreement to which
    they relate.
	 
	 	     
    (vi) Termination of Participant’s Continuous
    Service. Except as otherwise provided in the applicable
    Stock Unit Award Agreement, such portion of the Stock Unit Award
    that has not vested will be forfeited upon the
    Participant’s termination of Continuous Service.

     
(d) Stock Appreciation Rights. Each Stock
Appreciation Right Agreement shall be in such form and shall
contain such terms and conditions as the Board shall deem
appropriate. The terms and conditions of Stock Appreciation
Right Agreements may change from time to time, and the terms and
conditions of separate Stock Appreciation Right Agreements need
not be identical; provided, however, that each Stock
Appreciation Right Agreement shall include (through
incorporation of the provisions hereof by reference in the
agreement or otherwise) the substance of each of the following
provisions:

		
	 	     
    (i) Strike Price and Calculation of Appreciation.
    Each Stock Appreciation Right will be denominated in shares of
    Common Stock equivalents. The appreciation distribution payable
    on the exercise of a Stock Appreciation Right will be not
    greater than an amount equal to the excess of (i) the
    aggregate Fair Market Value (on the date of the exercise of the
    Stock Appreciation Right) of a number of shares of Common Stock
    equal to the number of share of Common Stock equivalents in
    which the Participant is vested under such Stock Appreciation
    Right, and with respect to which the Participant is exercising
    the Stock Appreciation Right on such date, over (ii) an
    amount (the strike price) that will be determined by the Board
    at the time of grant of the Stock Appreciation Right.
	 
	 	     
    (ii) Vesting. At the time of the grant of a Stock
    Appreciation Right, the Board may impose such restrictions or
    conditions to the vesting of such Stock Appreciation Right as
    it, in its sole discretion, deems appropriate.
	 
	 	     
    (iii) Exercise. To exercise any outstanding Stock
    Appreciation Right, the Participant must provide written notice
    of exercise to the Company in compliance with the provisions of
    the Stock Appreciation Right Agreement evidencing such Stock
    Appreciation Right.
	 
	 	     
    (iv) Payment. The appreciation distribution in
    respect to a Stock Appreciation Right may be paid in Common
    Stock, in cash, in any combination of the two or in any other
    form of consideration, as determined by the Board and contained
    in the Stock Appreciation Right Agreement evidencing such Stock
    Appreciation Right.
	 
	 	     
    (v) Termination of Continuous Service. In the event
    that a Participant’s Continuous Service terminates, the
    Participant may exercise his or her Stock Appreciation Right (to
    the extent that the Participant was entitled to exercise such
    Stock Appreciation Right as of the date of termination) but only
    within such period of time ending on the earlier of (i) the
    date three (3) months following the termination of the
    Participant’s Continuous Service (or such longer or shorter
    period specified in the Stock Appreciation Right Agreement), or
    (ii) the expiration of the term of the Stock Appreciation
    Right as set forth in the Stock Appreciation Right Agreement.
    If, after termination, the Participant does not exercise his or
    her Stock Appreciation Right within the time specified herein or
    in the Stock Appreciation Right Agreement (as applicable), the
    Stock Appreciation Right shall terminate.

13

 

     
(e) Other Stock Awards. Other forms of Stock Awards
valued in whole or in part by reference to, or otherwise based
on, Common Stock may be granted either alone or in addition to
Stock Awards provided for under Section 6 and the preceding
provisions of this Section 7. Subject to the provisions of
the Plan, the Board shall have sole and complete authority to
determine the persons to whom and the time or times at which
such Other Stock Awards will be granted, the number of shares of
Common Stock (or the cash equivalent thereof) to be granted
pursuant to such Other Stock Awards and all other terms and
conditions of such Other Stock Awards.

		
	8.	
    Covenants of the
    Company.

     
(a) Availability of Shares. During the terms of the
Stock Awards, the Company shall keep available at all times the
number of shares of Common Stock required to satisfy such Stock
Awards.

     
(b) Securities Law Compliance. The Company shall
seek to obtain from each regulatory commission or agency having
jurisdiction over the Plan such authority as may be required to
grant Stock Awards and to issue and sell shares of Common Stock
upon exercise of the Stock Awards; provided, however,
that this undertaking shall not require the Company to register
under the Securities Act the Plan, any Stock Award or any Common
Stock issued or issuable pursuant to any such Stock Award. If,
after reasonable efforts, the Company is unable to obtain from
any such regulatory commission or agency the authority that
counsel for the Company deems necessary for the lawful issuance
and sale of Common Stock under the Plan, the Company shall be
relieved from any liability for failure to issue and sell Common
Stock upon exercise of such Stock Awards unless and until such
authority is obtained.

		
	9.	
    Use of Proceeds from
    Sales of Common Stock.

     
Proceeds from the sale of shares of Common Stock pursuant to
Stock Awards shall constitute general funds of the Company.

		
	10.	
    Miscellaneous.

     
(a) Acceleration of Exercisability and Vesting. The
Board shall have the power to accelerate the time at which a
Stock Award may first be exercised or the time during which a
Stock Award or any part thereof will vest in accordance with the
Plan, notwithstanding the provisions in the Stock Award stating
the time at which it may first be exercised or the time during
which it will vest.

     
(b) Stockholder Rights. No Participant shall be
deemed to be the holder of, or to have any of the rights of a
holder with respect to, any shares of Common Stock subject to
such Stock Award unless and until such Participant has satisfied
all requirements for exercise of the Stock Award pursuant to its
terms.

     
(c) No Employment or Other Service Rights. Nothing
in the Plan, any Stock Award Agreement or other instrument
executed thereunder or any Stock Award granted pursuant thereto
shall confer upon any Participant any right to continue to serve
the Company or an Affiliate in the capacity in effect at the
time the Stock Award was granted or shall affect the right of
the Company or an Affiliate to terminate (i) the employment
of an Employee with or without notice and with or without cause,
or (ii) the service of a Director pursuant to the Bylaws of
the Company or an Affiliate, and any applicable provisions of
the corporate law of the state in which the Company or the
Affiliate is incorporated, as the case may be.

     
(d) Incentive Stock Option $100,000 Limitation. To
the extent that the aggregate Fair Market Value (determined at
the time of grant) of Common Stock with respect to which
Incentive Stock Options are exercisable for the first time by
any Optionholder during any calendar year (under all plans of
the Company and any Affiliates) exceeds one hundred thousand
dollars ($100,000), the Options or portions thereof that exceed
such limit (according to the order in which they were granted)
shall be treated as Nonstatutory Stock Options, notwithstanding
any contrary provision of the applicable Option Agreement(s).

     
(e) Investment Assurances. The Company may require a
Participant, as a condition of exercising or acquiring Common
Stock under any Stock Award, (i) to give written assurances
satisfactory to the Company as to the Participant’s
knowledge and experience in financial and business matters
and/or to employ a purchaser representative reasonably
satisfactory to the Company who is knowledgeable and experienced
in

14

 

financial and business matters and that he or she is capable of
evaluating, alone or together with the purchaser representative,
the merits and risks of exercising the Stock Award; and
(ii) to give written assurances satisfactory to the Company
stating that the Participant is acquiring Common Stock subject
to the Stock Award for the Participant’s own account and
not with any present intention of selling or otherwise
distributing the Common Stock. The foregoing requirements, and
any assurances given pursuant to such requirements, shall be
inoperative if (i) the issuance of the shares upon the
exercise or acquisition of Common Stock under the Stock Award
has been registered under a then currently effective
registration statement under the Securities Act, or (ii) as
to any particular requirement, a determination is made by
counsel for the Company that such requirement need not be met in
the circumstances under the then applicable securities laws. The
Company may, upon advice of counsel to the Company, place
legends on stock certificates issued under the Plan as such
counsel deems necessary or appropriate in order to comply with
applicable securities laws, including, but not limited to,
legends restricting the transfer of the Common Stock.

     
(f) Withholding Obligations. To the extent provided
by the terms of a Stock Award Agreement, the Company may, in its
sole discretion, satisfy any federal, state or local tax
withholding obligation relating to a Stock Award by any of the
following means (in addition to the Company’s right to
withhold from any compensation paid to the Participant by the
Company) or by a combination of such means: (i) causing the
Participant to tender a cash payment; (ii) withholding
shares of Common Stock from the shares of Common Stock issued or
otherwise issuable to the Participant in connection with the
Stock Award; or (iii) by such other method as may be set
forth in the Stock Award Agreement.

     
(g) Electronic Delivery. Any reference herein to a
“written” agreement or document shall include any
agreement or document delivered electronically or posted on the
Company’s intranet.

     
(h) Performance Stock Awards. A Stock Award may be
granted, may vest, or may be exercised based upon service
conditions, upon the attainment during a Performance Period of
certain Performance Goals, or both. The length of any
Performance Period, the Performance Goals to be achieved during
the Performance Period, and the measure of whether and to what
degree such Performance Goals have been attained shall be
conclusively determined by the Board in its sole discretion. The
maximum benefit to be received by any individual in any calendar
year attributable to Stock Awards described in this
Section 10(h) shall not exceed the value of five hundred
thousand (500,000) shares of Common Stock.

		
	11.	
    Adjustments upon
    Changes in Common Stock; Corporate Transactions.

     
(a) Capitalization Adjustments. If any change is
made in, or other events occur with respect to, the Common Stock
subject to the Plan or subject to any Stock Award after the
effective date of the Plan set forth in Section 14 without
the receipt of consideration by the Company (through merger,
consolidation, reorganization, recapitalization,
reincorporation, stock dividend, dividend in property other than
cash, stock split, liquidating dividend, combination of shares,
exchange of shares, change in corporate structure or other
transaction not involving the receipt of consideration by the
Company (each a “Capitalization
Adjustment”)), the Plan shall be appropriately
adjusted in the class(es) and maximum number of securities
subject to the Plan pursuant to Sections 4(a) and 4(b), the
maximum number of securities that may be awarded to any person
pursuant to Sections 5(c) and 10(h), and the outstanding
Stock Awards will be appropriately adjusted in the class(es) and
number of securities and price per share of stock subject to
such outstanding Stock Awards. The Board shall make such
adjustments, and its determination shall be final, binding and
conclusive. (Notwithstanding the foregoing, the conversion of
any convertible securities of the Company shall not be treated
as a transaction “without receipt of consideration” by
the Company.)

     
(b) Dissolution or Liquidation. In the event of a
dissolution or liquidation of the Company, all outstanding Stock
Awards (other than Stock Awards consisting of vested and
outstanding shares of Common Stock not subject to the
Company’s right of repurchase) shall terminate immediately
prior to the completion of such dissolution or liquidation, and
the shares of Common Stock subject to the Company’s
repurchase option may be repurchased by the Company
notwithstanding the fact that the holder of such Stock Award is
providing Continuous Service, provided, however, that the
Board may, in its sole discretion, cause some or all Stock
Awards to become fully vested, exercisable and/or no longer
subject to repurchase or forfeiture (to the

15

 

extent such Stock Awards have not previously expired or
terminated) before the dissolution or liquidation is completed
but contingent on its completion.

     
(c) Corporate Transaction. The following provisions
shall apply to Stock Awards in the event of a Corporate
Transaction unless otherwise provided in a written agreement
between the Company or any Affiliate and the holder of the Stock
Award:

		
	 	     
    (i) Stock Awards May Be Assumed. In the event of a
    Corporate Transaction, any surviving corporation or acquiring
    corporation (or the surviving or acquiring corporation’s
    parent company) may assume or continue any or all Stock Awards
    outstanding under the Plan or may substitute similar stock
    awards for Stock Awards outstanding under the Plan (including
    but not limited to, awards to acquire the same consideration
    paid to the stockholders of the Company pursuant to the
    Corporate Transaction), and any reacquisition or repurchase
    rights held by the Company in respect of Common Stock issued
    pursuant to Stock Awards may be assigned by the Company to the
    successor of the Company (or the successor’s parent
    company, if any), in connection with such Corporate Transaction.
    A surviving corporation or acquiring corporation may choose to
    assume or continue only a portion of a Stock Award or substitute
    a similar stock award for only a portion of a Stock Award. The
    terms of any assumption, continuation or substitution shall be
    set by the Board in accordance with the provisions of
    Section 3.
	 
	 	     
    (ii) Stock Awards Held by Current Participants. In
    the event of a Corporate Transaction in which the surviving
    corporation or acquiring corporation (or its parent company)
    does not assume or continue Stock Awards outstanding under the
    Plan or substitute similar stock awards for such outstanding
    Stock Awards, then with respect to Stock Awards that have not
    been assumed, continued or substituted and that are held by
    Participants whose Continuous Service has not terminated prior
    to the effective time of the Corporate Transaction (referred to
    as the “Current Participants”), the
    vesting of such Stock Awards (and, if applicable, the time at
    which such Stock Awards may be exercised) shall (contingent upon
    the effectiveness of the Corporate Transaction) be accelerated
    in full to a date prior to the effective time of such Corporate
    Transaction as the Board shall determine (or, if the Board shall
    not determine such a date, to the date that is five
    (5) days prior to the effective time of the Corporate
    Transaction), and such Stock Awards shall terminate if not
    exercised (if applicable) at or prior to the effective time of
    the Corporate Transaction, and any reacquisition or repurchase
    rights held by the Company with respect to such Stock Awards
    shall lapse (contingent upon the effectiveness of the Corporate
    Transaction).
	 
	 	     
    (iii) Stock Awards Held by Former Participants. In
    the event of a Corporate Transaction in which the surviving
    corporation or acquiring corporation (or its parent company)
    does not assume or continue Stock Awards outstanding under the
    Plan or substitute similar stock awards for such outstanding
    Stock Awards, then with respect to Stock Awards that have not
    been assumed, continued or substituted and that are held by
    persons other than Current Participants, the vesting of such
    Stock Awards (and, if applicable, the time at which such Stock
    Award may be exercised) shall not be accelerated and such Stock
    Awards (other than a Stock Award consisting of vested and
    outstanding shares of Common Stock not subject to the
    Company’s right of repurchase) shall terminate if not
    exercised (if applicable) prior to the effective time of the
    Corporate Transaction; provided, however, that any
    reacquisition or repurchase rights held by the Company with
    respect to such Stock Awards shall not terminate and may
    continue to be exercised notwithstanding the Corporate
    Transaction.
	 
	 	     
    (iv) Payment for Stock Awards in Lieu of Exercise.
    Notwithstanding the foregoing, in the event a Stock Award will
    terminate if not exercised prior to the effective time of a
    Corporate Transaction, the Board may provide, in its sole
    discretion, that the holder of such Stock Award may not exercise
    such Stock Award but will receive a payment, in such form as may
    be determined by the Board, equal in value to the excess, if
    any, of (i) the value of the property the holder of the
    Stock Award would have received upon the exercise of the Stock
    Award, over (ii) any exercise price payable by such holder
    in connection with such exercise.

     
(d) Change in Control. A Stock Award may be subject
to additional acceleration of vesting and exercisability upon or
after a Change in Control as may be provided in the Stock Award
Agreement for such

16

 

Stock Award or as may be provided in any other written agreement
between the Company or any Affiliate and the Participant, but in
the absence of such provision, no such acceleration shall occur.

		
	12.	
    Amendment of the Plan
    and Stock Awards.

     
(a) Amendment of Plan. Subject to the limitations,
if any, of applicable law, the Board at any time, and from time
to time, may amend the Plan. However, except as provided in
Section 11(a) relating to Capitalization Adjustments, no
amendment shall be effective unless approved by the stockholders
of the Company to the extent stockholder approval is necessary
to satisfy applicable law.

     
(b) Stockholder Approval. The Board, in its sole
discretion, may submit any other amendment to the Plan for
stockholder approval, including, but not limited to, amendments
to the Plan intended to satisfy the requirements of
Section 162(m) of the Code and the regulations thereunder
regarding the exclusion of performance-based compensation from
the limit on corporate deductibility of compensation paid to
Covered Employees.

     
(c) Contemplated Amendments. It is expressly
contemplated that the Board may amend the Plan in any respect
the Board deems necessary or advisable to provide eligible
Employees with the maximum benefits provided or to be provided
under the provisions of the Code and the regulations promulgated
thereunder relating to Incentive Stock Options and/or to bring
the Plan and/or Incentive Stock Options granted under it into
compliance therewith.

     
(d) No Impairment of Rights. Rights under any Stock
Award granted before amendment of the Plan shall not be impaired
by any amendment of the Plan unless (i) the Company
requests the consent of the affected Participant, and
(ii) such Participant consents in writing.

     
(e) Amendment of Stock Awards. The Board, at any
time and from time to time, may amend the terms of any one or
more Stock Awards, including, but not limited to, amendments to
provide terms more favorable than previously provided in the
Stock Award Agreement, subject to any specified limits in the
Plan that are not subject to Board discretion; provided,
however, that the rights under any Stock Award shall not be
impaired by any such amendment unless (i) the Company
requests the consent of the affected Participant, and
(ii) such Participant consents in writing.

     
(f) Prior Stockholder Approval of Option Repricings.
Notwithstanding anything to the contrary in the Plan, the Board
shall not, without obtaining the prior approval of the
stockholders of the Company, effect (i) the reduction of
the exercise price of any outstanding Option under the Plan;
(ii) the cancellation or acceptance of any outstanding
Option under the Plan and the grant in substitution or exchange
therefor of (a) a new Option under the Plan or another
equity plan of the Company covering the same or a different
number of shares of Common Stock, (b) a Stock Purchase
Award, (c) a Stock Bonus Award, (d) a Stock
Appreciation Right, (e) a Stock Unit Award, (f) an
Other Stock Award, (g) cash, and/or (h) other valuable
consideration (as determined by the Board, in its sole
discretion); or (iii) any other action that is treated as a
repricing under generally accepted accounting principles.

		
	13.	
    Termination or
    Suspension of the Plan.

     
(a) Plan Term. The Board may suspend or terminate
the Plan at any time. Unless sooner terminated, the Plan shall
terminate on the day before the tenth (10th) anniversary of the
date the Plan is adopted by the Board or approved by the
stockholders of the Company, whichever is earlier. No Stock
Awards may be granted under the Plan while the Plan is suspended
or after it is terminated.

     
(b) No Impairment of Rights. Suspension or
termination of the Plan shall not impair rights and obligations
under any Stock Award granted while the Plan is in effect except
with the written consent of the affected Participant.

17

 

		
	14.	
    Effective Date of
    Plan.

     
This Plan (as an amendment and restatement of the Prior Plan)
shall become effective on the date that the Plan is adopted by
the Board, but no Stock Award shall be exercised (or, in the
case of a Stock Purchase Award, Stock Bonus Award, Stock Unit
Award, or Other Stock Award shall be granted) unless and until
the Plan has been approved by the stockholders of the Company,
which approval shall be within twelve (12) months before or
after the date the Plan is adopted by the Board.

		
	15.	
    Choice of
    Law.

     
The law of the State of Delaware shall govern all questions
concerning the construction, validity and interpretation of this
Plan, without regard to such state’s conflict of laws rules.

18exv10w53

 

Exhibit 10.53

Molecular Devices Corporation

2005 Equity Incentive Plan

Stock Option Agreement

(Incentive Stock Option or Nonstatutory Stock Option)

     Pursuant to your Stock Option Grant Notice (“Grant Notice”) and this Stock Option Agreement,
Molecular Devices Corporation (the “Company”) has granted you an option under its 2005 Equity
Incentive Plan (the “Plan”) to purchase the number of shares of the Company’s Common Stock
indicated in your Grant Notice at the exercise price indicated in your Grant Notice. Defined terms
not explicitly defined in this Stock Option Agreement but defined in the Plan shall have the same
definitions as in the Plan.

     The details of your option are as follows:

     1. Vesting. Subject to the limitations contained herein, your option will vest as
provided in your Grant Notice, provided that vesting will cease upon the termination of your
Continuous Service.

     2. Number of Shares and Exercise Price. The number of shares of Common Stock subject
to your option and your exercise price per share referenced in your Grant Notice may be adjusted
from time to time for Capitalization Adjustments.

     3. Exercise prior to Vesting (“Early Exercise”). If permitted in your Grant Notice
(i.e., the “Exercise Schedule” indicates that “Early Exercise” of your option is permitted) and
subject to the provisions of your option, you may elect at any time that is both (i) during the
period of your Continuous Service and (ii) during the term of your option, to exercise all or part
of your option, including the nonvested portion of your option; provided, however, that:

          (a) a partial exercise of your option shall be deemed to cover first vested shares of Common
Stock and then the earliest vesting installment of unvested shares of Common Stock;

          (b) any shares of Common Stock so purchased from installments that have not vested as of the
date of exercise shall be subject to the purchase option in favor of the Company as described in
the Company’s form of Early Exercise Stock Purchase Agreement;

          (c) you shall enter into the Company’s form of Early Exercise Stock Purchase Agreement with a
vesting schedule that will result in the same vesting as if no early exercise had occurred; and

          (d) if your option is an Incentive Stock Option, then, to the extent that the aggregate Fair
Market Value (determined at the time of grant) of the shares of Common Stock with respect to which
your option plus all other Incentive Stock Options you hold are exercisable for the first time by
you during any calendar year (under all plans of the Company and its

 

 

Affiliates) exceeds one hundred thousand dollars ($100,000), your option(s) or portions
thereof that exceed such limit (according to the order in which they were granted) shall be treated
as Nonstatutory Stock Options.

     4. Method of Payment. Payment of the exercise price is due in full upon exercise of
all or any part of your option. You may elect to make payment of the exercise price in cash or by
check or in any other manner permitted by your Grant Notice, which may include one or more of the
following:

          (a) In the Company’s sole discretion at the time your option is exercised and provided that at
the time of exercise the Common Stock is publicly traded and quoted regularly in The Wall Street
Journal, pursuant to a program developed under Regulation T as promulgated by the Federal Reserve
Board that, prior to the issuance of Common Stock, results in either the receipt of cash (or check)
by the Company or the receipt of irrevocable instructions to pay the aggregate exercise price to
the Company from the sales proceeds.

          (b) Provided that at the time of exercise the Common Stock is publicly traded and quoted
regularly in The Wall Street Journal, by delivery of already-owned shares of Common Stock either
that you have held for the period required to avoid a charge to the Company’s reported earnings
(generally six (6) months) or that you did not acquire, directly or indirectly from the Company,
that are owned free and clear of any liens, claims, encumbrances or security interests, and that
are valued at Fair Market Value on the date of exercise. “Delivery” for these purposes, in the
sole discretion of the Company at the time you exercise your option, shall include delivery to the
Company of your attestation of ownership of such shares of Common Stock in a form approved by the
Company. Notwithstanding the foregoing, you may not exercise your option by tender to the Company
of Common Stock to the extent such tender would violate the provisions of any law, regulation or
agreement restricting the redemption of the Company’s stock.

          (c) By a “net exercise” arrangement pursuant to which the Company will reduce the number of
shares of Common Stock issued upon exercise by the largest whole number of shares with a Fair
Market Value that does not exceed the aggregate exercise price; provided, however, the Company
shall accept a cash or other payment from you to the extent of any remaining balance of the
aggregate exercise price not satisfied by such holding back of whole shares; provided, however,
shares of Common Stock will no longer be outstanding under an Option and will not be exercisable
thereafter to the extent that (i) shares are used to pay the exercise price pursuant to the “net
exercise,” (ii) shares are delivered to you as a result of such exercise, and (iii) shares are
withheld to satisfy tax withholding obligations.

     5. Whole Shares. You may exercise your option only for whole shares of Common Stock.

     6. Securities Law Compliance. Notwithstanding anything to the contrary contained
herein, you may not exercise your option unless the shares of Common Stock issuable upon such
exercise are then registered under the Securities Act or, if such shares of Common Stock are not
then so registered, the Company has determined that such exercise and issuance would be exempt from
the registration requirements of the Securities Act. The exercise of your

 

 

option also must comply with other applicable laws and regulations governing your option, and
you may not exercise your option if the Company determines that such exercise would not be in
material compliance with such laws and regulations.

     7. Term. You may not exercise your option before the commencement or after the
expiration of its term. The term of your option commences on the Date of Grant and expires upon
the earliest of the following:

          (a) three (3) months after the termination of your Continuous Service for any reason other
than your Disability or death, provided that if during any part of such three (3) month period your
option is not exercisable solely because of the condition set forth in Section 6, your option shall
not expire until the earlier of the Expiration Date or until it shall have been exercisable for an
aggregate period of three (3) months after the termination of your Continuous Service;

          (b) twelve (12) months after the termination of your Continuous Service due to your
Disability;

          (c) eighteen (18) months after your death if you die either during your Continuous Service or
within three (3) months after your Continuous Service terminates;

          (d) the Expiration Date indicated in your Grant Notice; or

          (e) the day before the tenth (10th) anniversary of the Date of Grant.

     If your option is an Incentive Stock Option, note that to obtain the federal income tax
advantages associated with an Incentive Stock Option, the Code requires that at all times beginning
on the date of grant of your option and ending on the day three (3) months before the date of your
option’s exercise, you must be an employee of the Company or an Affiliate, except in the event of
your death or your permanent and total disability, as defined in Section 22(e) of the Code. (The
definition of disability in Section 22(e) of the Code is different from the definition of the
Disability under the Plan). The Company has provided for extended exercisability of your option
under certain circumstances for your benefit but cannot guarantee that your option will necessarily
be treated as an Incentive Stock Option if you continue to provide services to the Company or an
Affiliate as a consultant or Director after your employment terminates or if you otherwise exercise
your option more than three (3) months after the date your employment with the Company or an
Affiliate terminates.

     8. Exercise.

          (a) You may exercise the vested portion of your option (and the unvested portion of your
option if your Grant Notice so permits) during its term by delivering the exercise price to the
Secretary of the Company, or to such other person as the Company may designate, during regular
business hours, together with such additional documents as the Company may then require.

          (b) By exercising your option you agree that, as a condition to any exercise of your option,
the Company may require you to enter into an arrangement providing for the

 

 

payment by you to the Company of any tax withholding obligation of the Company arising by
reason of (1) the exercise of your option, (2) the lapse of any substantial risk of forfeiture to
which the shares of Common Stock are subject at the time of exercise, or (3) the disposition of
shares of Common Stock acquired upon such exercise.

          (c) If your option is an Incentive Stock Option, by exercising your option you agree that you
will notify the Company in writing within fifteen (15) days after the date of any disposition of
any of the shares of the Common Stock issued upon exercise of your option that occurs within two
(2) years after the date of your option grant or within one (1) year after such shares of Common
Stock are transferred upon exercise of your option.

     9. Transferability. Your option is not transferable, except by will, by the laws of
descent and distribution, or pursuant to a domestic relations order, and is exercisable during your
life only by you. Notwithstanding the foregoing, by delivering written notice to the Company, in a
form satisfactory to the Company, you may designate a third party who, in the event of your death,
shall thereafter be entitled to exercise your option.

     10. Option not a Service Contract. Your option is not an employment or service
contract, and nothing in your option shall be deemed to create in any way whatsoever any obligation
on your part to continue in the employ of the Company or an Affiliate, or of the Company or an
Affiliate to continue your employment. In addition, nothing in your option shall obligate the
Company or an Affiliate, their respective stockholders, Boards of Directors, Officers or Employees
to continue any relationship that you might have as a Director or consultant for the Company or an
Affiliate.

     11. Withholding Obligations.

          (a) At the time you exercise your option, in whole or in part, or at any time thereafter as
requested by the Company, you hereby authorize withholding from payroll and any other amounts
payable to you, and otherwise agree to make adequate provision for (including by means of a
“cashless exercise” pursuant to a program developed under Regulation T as promulgated by the
Federal Reserve Board to the extent permitted by the Company), any sums required to satisfy the
federal, state, local and foreign tax withholding obligations of the Company or an Affiliate, if
any, which arise in connection with the exercise of your option.

          (b) Upon your request and subject to approval by the Company, in its sole discretion, and
compliance with any applicable legal conditions or restrictions, the Company may withhold from
fully vested shares of Common Stock otherwise issuable to you upon the exercise of your option a
number of whole shares of Common Stock having a Fair Market Value, determined by the Company as of
the date of exercise, not in excess of the minimum amount of tax required to be withheld by law (or
such lower amount as may be necessary to avoid variable award accounting). If the date of
determination of any tax withholding obligation is deferred to a date later than the date of
exercise of your option, share withholding pursuant to the preceding sentence shall not be
permitted unless you make a proper and timely election under Section 83(b) of the Code, covering
the aggregate number of shares of Common Stock acquired upon such exercise with respect to which
such determination is otherwise deferred, to accelerate the determination of such tax withholding
obligation to the date of exercise of your option.

 

 

Notwithstanding the filing of such election, shares of Common Stock shall be withheld solely
from fully vested shares of Common Stock determined as of the date of exercise of your option that
are otherwise issuable to you upon such exercise. Any adverse consequences to you arising in
connection with such share withholding procedure shall be your sole responsibility.

          (c) You may not exercise your option unless the tax withholding obligations of the Company
and/or any Affiliate are satisfied. Accordingly, you may not be able to exercise your option when
desired even though your option is vested, and the Company shall have no obligation to issue a
certificate for such shares of Common Stock or release such shares of Common Stock from any escrow
provided for herein unless such obligations are satisfied.

     12. Notices. Any notices provided for in your option or the Plan shall be given in
writing and shall be deemed effectively given upon receipt or, in the case of notices delivered by
mail by the Company to you, five (5) days after deposit in the United States mail, postage prepaid,
addressed to you at the last address you provided to the Company.

     13. Governing Plan Document. Your option is subject to all the provisions of the
Plan, the provisions of which are hereby made a part of your option, and is further subject to all
interpretations, amendments, rules and regulations, which may from time to time be promulgated and
adopted pursuant to the Plan. In the event of any conflict between the provisions of your option
and those of the Plan, the provisions of the Plan shall control.

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