Document:

Agreement of Sublease

 EXHIBIT 10.118 
  
 CONFIDENTIAL TREATMENT REQUESTED 
 CONFIDENTIAL PORTION HAS BEEN FILED SEPARATELY WITH THE 
 SECURITIES EXCHANGE COMMISSION.

  
 AGREEMENT OF SUBLEASE 
  
 THIS AGREEMENT OF SUBLEASE (this “Sublease”) is made as of
the 13th day of July, 2005 between VERIO INC., a Delaware corporation (“Sublandlord”), and EQUINIX
OPERATING CO., INC. a Delaware corporation (“Subtenant”). 
  
 BACKGROUND 
  
 A.
Sublandlord and Subtenant have entered into that certain asset purchase agreement of even date herewith pursuant to which Subtenant agreed to purchase and assume and Sublandlord agreed to sell and assign certain data center facility improvements
located at the “Demised Premises” (as defined below) (the “Asset Purchase Agreement”). 
  
 B. Sublandlord has entered into that certain lease agreement with CARLYLE-CORE CHICAGO LLC, a Delaware corporation (“Carlyle-Core”),
dated February 6, 2000 as amended on January 1, 2002 and as of even date herewith (the “Master Lease”), pursuant to which Sublandlord has certain rights (i) to use and occupy certain space located within a building located at 350
East Cermak Road, Chicago, Illinois, 60616 (the “Property”), such space consisting of the Premises described in Section 1(c) of the Master Lease (the “Premises”), and (ii) in connection with Sublandlord’s lease
of the Premises, to use certain equipment space (the “Equipment Space”) located at the Property, as described in Section 1(d) of the Master Lease (the Premises and the Equipment Space hereinafter collectively referred to as the
“Demised Premises”). Digital Lakeside, LLC, a Delaware limited liability company (“Master Landlord”) has acquired the interest of Carlyle-Core in the Property and in the Lease. A true and correct copy of the Master
Lease is attached hereto as Exhibit A and is hereby made a part hereof. All capitalized terms used in this Sublease which are not otherwise defined shall have the meaning ascribed thereto in the Master Lease. 
  
 C. Subtenant desires to sublease from Sublandlord, on the terms and
conditions hereinafter set forth and subject in all respects to the Master Lease, the entirety of the Demised Premises. The Demised Premises is depicted on Exhibit B attached hereto. 
  
 AGREEMENT 
  
 NOW, THEREFORE, in consideration of the rents herein reserved and the covenants hereinafter expressed, and intending to be
legally bound, Sublandlord and Subtenant agree as follows: 
  
 1.
Term. 
  
 (a) Sublease Grant and Term. Sublandlord
hereby demises and sublets to Subtenant, who hereby subleases and takes from Sublandlord, the Demised Premises together with: (i) the Sublandlord’s rights under Sections 5(c) 16(b) and 17 of the Master Lease; (ii) Sublandlord’s rights to
use the Equipment Space in accordance with Section 6 of the Master 

 
Lease; (iii) the benefit of Sublandlord’s rights under the following Sections of the Master Lease, 7 (Services), 9(b) (Landlord’s Maintenance
Obligations) and 10 (notice prior to entry by Landlord); (iv) the non-exclusive right to use certain portions of the Property defined as “Common Areas” in the Master Lease; and (v) Sublandlord’s parking rights under Section 31
of the Sublease provided that Subtenant shall be responsible for all costs associated therewith during the Term from and after the Possession Date (as defined below) and no other rights unless specifically provided for in this Sublease (and
specifically consented to by Master Landlord in the Master Landlord Consent, as defined in the Asset Purchase Agreement) for the Term (as defined below). The “Term” shall mean that period beginning on the Lease Effective Date, as
defined in Subparagraph 1(b), and ending on the “Expiration Date” (as defined in the Master Lease), unless sooner terminated in accordance with the terms of this Sublease. In the event of any earlier termination of the Master Lease,
then the Term of this Sublease shall terminate concurrently therewith. Notwithstanding anything herein to the contrary, in no event shall the Term of this Sublease (including any permitted extensions or renewals thereof) extend beyond the term of
the Master Lease. 
  
 (b) The effective date of this Lease (the
“Lease Effective Date”) shall be the date on which (i) the Effective Date shall have occurred as defined in and pursuant to the terms of the Asset Purchase Agreement and (ii) Subtenant shall have paid the Earnest Money as defined in
and pursuant to the terms of the Asset Purchase Agreement. 
  
 (c)
Lease Year. The term “Lease Year” shall mean a period of twelve (12) consecutive full calendar months during the Term commencing on the Lease Effective Date or any anniversary thereof; provided, however, that if the Lease
Effective Date is a day other than the first day of a calendar month, the first Lease Year shall include the resulting fractional month and shall extend through the end of the twelfth (12th) full calendar month following the Lease Effective Date.

  
 2. Rent. As consideration for this Sublease, Subtenant
shall pay to Sublandlord commencing November 1, 2005 (the “Rent Commencement Date”) and continuing for the Term hereof, without any offset or deduction, annual rent (“Rent”), in an amount equal to: (a) with respect
to the first Rental Year (as defined below), [*]; (b) with respect to each Rental Year thereafter, the sum of (i) the annual Rent rate for the first Rental Year and (ii) the applicable Annual Rent Escalator. The “Annual Rent
Escalator” for any given Rental Year is the product of (x) [*] multiplied by the number of Rental Years preceding such Rental Year. By way of example: in Rental Year 2 the Annual Rent shall be the annual Rent rate for Rental Year 1 (i.e., [*]) plus [*]; in Rental Year 3 the Annual Rent shall be the annual Rent rate for Rental Year 1 (i.e., [*]) plus [*]. The term “Rental Year” shall mean a period of twelve (12) consecutive full calendar months during the Term
commencing on the Rent Commencement Date or any anniversary thereof; provided, however, that if the Rent Commencement Date is a day other than the first day of a calendar month, the first Rental Year shall include the resulting fractional month and
shall extend through the end of the twelfth (12th) full calendar month following the Rent Commencement Date. 

	*	CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTION HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 

  

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 Rent shall be payable in equal monthly installments in advance on the first day of each and every
calendar month during the Term, without setoff, deduction, notice or demand; provided, however, that the first Rent payment shall be due no later than five business days prior to the Rent Commencement Date. 
  
 3. Possession Date. Notwithstanding the fact that the Term begins on
the Lease Effective Date, Sublandlord shall not deliver and Subtenant shall not take possession of the Premises prior to the Rent Commencement Date, unless Subtenant elects to accept possession of the Demised Premises prior to the Rent Commencement
Date by written notice to Sublandlord (the earlier of November 1, 2005 and such date of possession is hereinafter referred to as the “Possession Date”). Following the Lease Effective Date and prior to the Possession Date, upon not
less than seventy two (72) hour telephonic notice, Sublandlord shall allow Subtenant reasonable and escorted access to the Demised Premises during normal business hours solely for the purpose of completing any further investigations, inspections,
measurements, planning, testing or evaluations; provided that such access shall be subject to Subtenant’s delivery of all insurance certificates required with respect to Subtenant’s due diligence as Buyer under the Asset Purchase
Agreement. In addition, Subtenant agrees to indemnify, defend and hold Sublandlord harmless from and against any and all claims for injury to persons or damage to property caused by Subtenant or its representatives while on-site at the Demised
Premises. 
  
 4. Late Charges and Interest. If any monthly
installment of Rent or any other payment to be made by Subtenant to Sublandlord hereunder is not paid when due such amounts shall be subject to (i) interest from the date due until paid at the rate as provided under Section 20(b) of the Master
Lease, and (ii) if applicable, any administration fees payable under Section 4(a) of the Master Lease. 
  
 5. Use. Subtenant shall not use the Demised Premises for any purpose other than for the “Permitted Use” (as defined in the Master
Lease). 
  
 6. Sublandlord’s Work. Subtenant
acknowledges and agrees that Sublandlord is delivering the Demised Premises to Subtenant in “AS IS” condition, without representation or warranty whatsoever and without any obligation of Sublandlord to perform any alterations or
improvements to the Demised Premises. 
  
 7. Subtenant’s
Alterations. Subtenant shall not cause or permit the Demised Premises to be altered or improved in any way during the Term except as specifically provided for in connection with “Leasehold Improvements” as defined and provided
for in the Master Lease and without first obtaining the prior written consent of both Master Landlord and Sublandlord to such alterations or improvements (if such consent is required of Master Landlord under the Master Lease) and (if required under
the Master Lease) the contractors conducting the same, which consent(s): (a) shall in all cases be subject to the terms and conditions of the Master Lease; and (b) with respect to Sublandlord’s consent(s), shall not be unreasonably withheld,
conditioned or delayed to the extent that such Leasehold Improvements do not materially interfere with the use of the Demised Premises for the Permitted Use. If Sublandlord shall fail to respond within five (5) business day after receipt of request
by Subtenant for Sublandlord’s consent to a proposed alteration in accordance with the terms of this Sublease then Sublandlord shall be deemed to have give its consent with respect to such request. In connection with 

  

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Sublandlord’s approval of any alteration or improvement to the Demised Premises, Sublandlord may request such plans and specifications for such
alterations or improvements as Sublandlord may require including, without limitation, any such plans and specifications required by Master Landlord for its approval. Any and all work performed by or on behalf of Subtenant in the Demised Premises
shall be in accordance with the terms of the Master Lease and in accordance with all applicable laws, including, without limitation, the Americans with Disabilities Act of 1990, as amended. The removal obligations with respect to any alterations or
improvements made by Subtenant shall be governed by Section 17 of this Sublease. 
  
 8. Maintenance and Repair. 
  
 (a) Subtenant shall at Subtenant’s sole cost and expense, maintain, repair, and replace all portions of the Demised Premises as the same are to be maintained, repaired and replaced by Sublandlord as “tenant” under the Master
Lease; provided, however, that, at Sublandlord’s option, if Subtenant fails to make such repairs within a reasonable time after written request by Sublandlord, Sublandlord may, but need not, make such repairs and replacements, and Subtenant
shall pay Sublandlord the cost thereof upon being billed for the same. 
  
 (b) Sublandlord shall, have no obligation to maintain and repair the Demised Premises pursuant to this Sublease; however, Sublandlord shall, upon written notice of Subtenant, take all reasonable steps, subject and pursuant to Section 22(c),
to compel Master Landlord to comply with Master Landlord’s maintenance obligations under the Master Lease. 
  
 9. Utilities. From and after the earlier of the Rent Commencement Date and the Possession Date, Subtenant shall, at Subtenant’s sole cost and
expense, and in addition to Subtenant’s payment of Rent, cause all utilities used by Subtenant on the Demised Premises to be separately metered (where possible) and shall pay the cost of the consumption of the same directly to the utility
providers. If, at any time, it is no longer feasible for Subtenant to contract directly with the utility provider for any such services, Subtenant shall reimburse the costs of such services as provided for under Section 7(b) of the Master Lease or
otherwise. Such reimbursement shall be effectuated, at Sublandlord’s election, either (i) directly to Master Landlord or (ii) to Sublandlord, provided that, in either case such reimbursement shall be made in accordance with the terms and
conditions of the Master Lease. Sublandlord shall not be liable in damages or otherwise for any failure or interruption of (a) any utility service furnished to the Demised Premises, or (b) the heating, ventilating and air conditioning system, if
any. No such failure or interruption shall entitle Subtenant to terminate this Sublease or to abate or offset Rent or other charges. 
  
 10. Assignment and Subletting. Subtenant shall not voluntarily or by operation of law assign, sublet, mortgage, encumber, license or transfer this
Sublease or any interest therein, or any right or privilege appurtenant thereto, or permit any person to occupy or use the Demised Premises or any portion thereof except as specifically provided for in the Master Lease (including any requirement of
Master Landlord’s consent). Any such transaction entered into by Subtenant in violation of this Sublease and any instrument evidencing same shall be void and of no effect, and shall, at the option of Sublandlord and without prejudice to
Sublandlord’s other rights and remedies hereunder or at law or in equity, permit Sublandlord to terminate this Sublease. 
  

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 11. Hazardous Materials. Subtenant shall comply and shall cause its agents, employees,
contractors, invitees and licensees to comply with all requirements related to the use and disclosure of “Hazardous Materials” (as defined in the Master Lease) under the Master Lease, including, without limitation, the obligation to
execute and deliver to each of Master Landlord and Sublandlord on the 10th day of March for each year of the Term a “HazMat Certificate” (as defined in the Master Lease) and hereby indemnifies and holds Sublandlord harmless from any
violation hereof. In addition to Subtenant’s obligations as set forth in this Section 11, Subtenant shall protect, indemnify and defend Sublandlord and Master Landlord to the extent required of Sublandlord as “tenant” under the Master
Lease with respect to claims related to Hazardous Materials and arising from and after the Lease Effective Date (except to the extent caused by Sublandlord). Sublandlord hereby represents and warrants that, to the best of Sublandlord’s
knowledge after due inquiry, the information on the Sublandlord’s Initial HazMat Certificate (a copy of which is attached hereto as Exhibit C) is accurate as of the date hereof. 
  
 12. Insurance. During the Term of this Sublease, Subtenant shall
maintain such insurances on the Demised Premises, in such kinds and amounts as are required of the Sublandlord as “tenant” under the Master Lease and shall comply with all Master Lease provisions regarding insurance. All commercial general
liability insurance policies shall name Subtenant as a “named insured” and Sublandlord together with any parties required to be named as additional insureds under the Master Lease as “additional insureds”. 
  
 13. Indemnification. 
  
 (a) Subtenant’s Indemnification and Waiver of Claims against
Sublandlord. Subtenant agrees to indemnify and save harmless Sublandlord against and from any and all claims by or on behalf of any person or persons, firm or firms, corporation or corporations, arising from Subtenant’s use of the Demised
Premises or the conduct of its business or from any activity, work, or thing done, permitted or suffered by Subtenant in or about the Demised Premises, and will further indemnify and save Sublandlord harmless against and from any and all claims
arising from any breach or default on Subtenant’s part in the performance of any covenant or agreement on Subtenant’s part to be performed pursuant to the terms of this Sublease (including, without limitation, any claims by Master Landlord
with respect to expenses and storage charges incurred by Master Landlord pursuant to Section 30 of the Master Lease), or arising from any act or negligence of Subtenant, or any of its agents, contractors, servants, employees or licensees, and from
and against all costs, expenses and liabilities, including reasonable counsel fees, incurred in connection with any such claim or action or proceeding brought thereon; and in case any action or proceeding be brought against Sublandlord by reason of
any such claim, Subtenant upon notice from Sublandlord covenants to resist or defend at Subtenant’s expense such action or proceeding by counsel reasonably satisfactory to Sublandlord. Subtenant hereby assumes all risk of loss of or damage to
property in, upon or about the Demised Premises from theft or patent or latent defect in the Demised Premises or otherwise (which shall include, without limitation, any injury or damage to persons or property resulting from flood, fire, explosion,
falling plaster, steam, gas, electricity, electrical disturbance, water, rain, snow, leaks from any part of the Demised Premises or from the pipes or appliances), 

  

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and Subtenant hereby waives all claims in respect thereof against Sublandlord except claims based solely on the gross negligence of Sublandlord or its
agents, servants or employees, as applicable, and agrees to defend and save Sublandlord harmless from and against any such claims by others. 
  
 (b) Subtenant’s Indemnification and Waiver of Claims against Master Landlord. Subtenant shall indemnify Master Landlord and waive those claims
and losses against Master Landlord on the terms and conditions for indemnification of and waiver of claims against Master Landlord by Sublandlord as “tenant” under the Master Lease. 
  
 14. Waiver of Subrogation. In addition to the waiver provisions of
Section 13 above, Sublandlord and Subtenant each waive, and shall cause their respective insurance carries to waive, any and all rights of recovery, claim, action or causes of action against the other and their respective trustees, principals,
beneficiaries, partners, officers, directors, agents and employees, from any and all claims and liability arising from or caused by any casualty or hazard covered or required under this Sublease to be covered in whole or in part by insurance on the
Demised Premises or in connection with property on or activities conducted on the Demised Premises to the extent of the limits of any such insurance, and waive any right of subrogation which might otherwise exist in or accrue to any person on
account thereof. 
  
 15. Sublandlord’s Covenants.
Sublandlord hereby makes the following covenants: 
  
 (a)
Subtenant shall and may peacefully have, hold and enjoy the Demised Premises, subject to the terms of this Sublease and the Master Lease; provided, that, Subtenant pays the Rent and fully performs all of its covenants and agreements or cures any
failure to do so under any applicable cure period. 
  
 (b)
Sublandlord shall pay the “Rent” (as defined in the Master Lease) except to the extent that any portion of “Additional Rent” (as defined in the Master Lease) has been assumed by Subtenant pursuant to this Sublease. 
  
 16. Signage; Exterior Displays. Subtenant shall have the same rights
to signage as afforded to Sublandlord as “tenant” under Section 33(k) of the Master Lease. 
  
 17. Surrender of Demised Premises. Upon the expiration or earlier termination of this Sublease, Subtenant shall peaceably surrender the Demised
Premises in accordance with the terms of the Master Lease. 
  
 18.
Holding Over. Subtenant shall not remain in possession of the Demised Premises after the expiration or earlier termination of the Term without the express written consent of Sublandlord. Should Subtenant hold over without the express written
consent of Sublandlord, such tenancy shall be at the sufferance of Sublandlord and not a renewal of the Term and in such case, Rent and all other charges due pursuant to this Sublease shall be payable on a per month basis (without reduction for
partial months during the holdover period) at one hundred and fifty (150) percent of the amount payable during the last Lease Year of the Term and such tenancy at sufferance shall be subject to every other term, covenant and provision of this
Sublease. In the event Subtenant holds over, Subtenant shall be liable for all of Sublandlord’s actual damages including, without limitation, costs and liabilities owed to Master Landlord, which shall include, 

  

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without limitation, costs, fees, expenses, damages and attorneys’ fees incurred by Sublandlord as a result of Subtenant’s holding over, and damages
and expenses incurred by Sublandlord for its inability to deliver possession of the Demised Premises to a new subtenant or to Master Landlord. 
  
 19. Default by Subtenant. The occurrence of any one or more of the following events (in this Section 19 sometimes called an “Event of
Default”) shall constitute a default and breach of this Sublease by Subtenant: 
  
 (a) If Subtenant fails to pay Rent or any other amount when due and payable, and such failure continues for a period of three (3) business days after written notice thereof is given by Sublandlord to Subtenant;
provided, that, Sublandlord shall be required to deliver such notice only two (2) times in any twelve (12) month period, and any subsequent failure to pay any Rent when due in any such twelve (12) month period shall constitute an Event of Default,
without the necessity of written notice from Sublandlord or a three (3) business day grace period. 
  
 (b) If Subtenant fails to perform any of Subtenant’s nonmonetary obligations under this Sublease for a period of fifteen (15) business days after
written notice thereof is given by Sublandlord to Subtenant; provided, however, that if such failure is of the nature that it cannot reasonably be cured within such fifteen-business day period, then Subtenant shall have such additional time as is
reasonably necessary to cure such failure as long as; (i) Subtenant commences to cure such failure within such fifteen-business day period and thereafter diligently pursues such cure to completion, and (ii) such additional cure period does not
result in a default under the Master Lease. 
  
 (c) If: (i)
Subtenant makes a general assignment or general arrangement for the benefit of creditors; (ii) a petition for adjudication of bankruptcy or for reorganization or rearrangement is filed by or against Subtenant; (iii) a trustee or receiver is
appointed to take possession of substantially all of Subtenant’s assets located at the Demised Premises or of Subtenant’s interest in this Sublease; or (iv) substantially all of Subtenant’s assets located at the Demised Premises or of
Subtenant’s interest in this Sublease is subjected to attachment, execution or other judicial or non-judicial seizure. Notwithstanding the forgoing, none of items (ii), (iii) or (iv) above shall, to the extent initiated without the cooperation
of Subtenant, constitute an Event of Default if the same are removed to the satisfaction of Sublandlord on or before sixty (60) days after such filing, appointment, attachment or seizure. 
  
 (d) If Subtenant fails to comply with any of the terms and provisions of the Master Lease assumed pursuant to this Sublease
or causes or permits any default under the Master Lease beyond the applicable grace period. 
  
 (e) If Subtenant fails to comply with any of its obligations or permits any default under the Asset Purchase Agreement. 
  
 (f) If the leasehold estate created by this Sublease or the Master Lease is taken by process or operation of any applicable statues, codes, ordinances,
orders, rules and regulations of any municipal governmental entity. 
  

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 20. Sublandlord’s Remedies. Upon the occurrence of an Event of Default by Subtenant, and at
any time thereafter, with or without notice or demand and without limiting Sublandlord in the exercise of any other right or remedy which Sublandlord may have, Sublandlord shall be entitled to exercise the following rights and remedies: 

 
 (a) Sublandlord may terminate Subtenant’s right to possession of the
Demised Premises by any lawful means (in which case this Sublease shall not terminate unless Sublandlord gives written notice to Subtenant of its intention to terminate this Sublease), in which event Subtenant shall immediately surrender possession
of the Demised Premises to Sublandlord. 
  
 (b) At any time after
an Event of Default, whether or not Sublandlord shall have terminated this Sublease, Sublandlord shall be entitled to recover from Subtenant, and Subtenant shall pay to Sublandlord, on demand, for damages for Subtenant’s default, an amount
equal to the then present worth (using the then current “Prime Rate” as defined in the Master Lease as the annual discount rate for computing such present worth) of (i) the aggregate of the Rent and any other charges to be paid by
Subtenant hereunder for the unexpired portion of the Term (assuming this Sublease had not been terminated), less (ii) the fair market rental value of the Demised Premises during such period, together with all other damages suffered by Sublandlord,
which shall include, without limitation, all costs of associated with the reletting of the Demised Premises and reasonable attorneys’ fees. Nothing herein contained shall limit or prejudice the right of Sublandlord to prove and obtain, as
damages, an amount equal to the maximum allowed by any statute or rule of law in effect at the time when, and governing the proceedings in which, such damages are to be proved, whether or not such amount is greater than, equal to or less than the
amount referred to above. 
  
 (c) All rights, options and remedies
of Sublandlord contained in this Sublease shall be construed and held to be cumulative, and no one of them shall be exclusive of the other, and Sublandlord shall have the right to pursue any one or all of such remedies or any other remedy or relief
which may be provided by law whether or not stated in this Sublease. 
  
 21. Default by Sublandlord; Subtenant’s Remedies. In the event of any alleged breach by Sublandlord of its covenants contained in this Sublease, Subtenant shall have available all rights and remedies provided at law or in
equity, subject to the terms and conditions of this Sublease; provided, however, Subtenant may not exercise any such right or remedy unless Subtenant has notified Sublandlord by written notice of such alleged default, and Sublandlord has not cured
such default within the thirty (30) day period subsequent to receipt of such notice or, in the event such alleged default is of such a nature that it cannot reasonably be cured within such thirty day period, Sublandlord has failed to cure such
alleged default with all due diligence. Notwithstanding anything to the contrary contained in this Sublease, in no event shall Subtenant be entitled to terminate this Sublease or to abate or offset Rent or any other payments to be made by Subtenant
hereunder; provided, however, that solely with respect to a monetary default by Sublandlord under the Master Lease, Subtenant may offset Rent payable under this Sublease to the extent Subtenant pays such offset sums directly to Master Landlord on
behalf and on account of Sublandlord. 
  

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 22. Terms of Master Lease Incorporated. This Sublease is subject and subordinate to all of the
terms and conditions of the Master Lease, all of which are hereby incorporated herein by reference and made a part hereof, and: 
  
 (a) Subtenant does hereby assume and agree to be bound by the terms and conditions of the Master Lease, and Subtenant shall fully and faithfully perform,
with regard to the Demised Premises, all of the duties and obligations contained in the Master Lease to be performed by Sublandlord excluding the following: 
  
 (i) The payment of “Rent” (as defined and provided for under Section 4 of the Master Lease) including “Tenant’s Pro Rata Share”
of “Operating Expenses” and “Property Taxes” (as those terms are defined in the Master Lease) except to the extent that any portion of “Additional Rent” (as defined in the Master Lease) has been assumed by Subtenant
pursuant to this Sublease (e.g., parking fees and costs, indemnification obligations attorney’s fees, etc.). 
  
 (ii) Obligations related to the “Initial Tenant Improvements” (as defined in the Master Lease). 
  
 (iii) The default and remedies provisions of Sections 19 and 20 of the
Master Lease. 
  
 (iv) The provisions of Section 25 (subject to
Subtenant’s obligations under this Sublease) and Section 26. 
  
 (b) Except as otherwise provided herein, Sublandlord, in its relations with Subtenant hereunder, shall have all of the rights and remedies afforded to Master Landlord in its relations with Sublandlord as set forth in the Master Lease other
than Master Landlord’s consent rights. 
  
 (c) Subtenant
acknowledges and agrees that (i) Sublandlord is not subject to any of the obligations of Master Landlord as set forth in the Master Lease; and (ii) Sublandlord is hereby released and relieved of any liability to Subtenant for any default by Master
Landlord under the Master Lease or any failure by Master Landlord to perform any of its obligations thereunder, but Sublandlord agrees, upon the written request of Subtenant and at Subtenant’s sole expense, to employ commercially reasonable
efforts to enforce any of such obligations and to cause Master Landlord to perform same; provided, however, that Sublandlord shall not be liable to Subtenant in damages if, after reasonable diligence on the part of Sublandlord, Master Landlord shall
fail to perform such obligations. 
  
 (d) Subtenant acknowledges
that the rights granted to it under this Sublease are not in any sense greater or broader than the rights granted to Sublandlord under the Master Lease. 
  
 (e) Subtenant and Sublandlord acknowledge and agree that (i) Sublandlord shall not exercise any “Renewal Option” or “Expansion Option”
as such terms are defined in the Master Lease and (ii) Subtenant shall have the right to exercise any “Renewal Option” or “Expansion Option” only if Subtenant is able to obtain from Master Landlord a full and final 

  

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release of Sublandlord as tenant under the Master Lease with respect to all obligations and liabilities arising from and after the end of the Initial Term of
the Master Lease, in a form acceptable to Sublandlord. 
  
 (f)
Sublandlord and Subtenant acknowledge and agree that in the event there arises a right on the part of Sublandlord as tenant under the Master Lease to elect to terminate the Master Lease, then Subtenant shall have the right to direct Sublandlord to
effectuate such a termination or, in the event Subtenant fails to exercise such right, Sublandlord may elect to so terminate the Master Lease; provided, however, that Sublandlord hereby agrees not to so terminate the Master Lease if Subtenant
obtains from Master Landlord a full and final release of Sublandlord as tenant under the Master Lease for all obligations and liabilities arising after the earliest effective date on which Sublandlord was entitled to terminate the Master Lease, in a
form acceptable to Sublandlord. 
  
 (g) Sublandlord hereby
represents and warrants that Exhibit A contains a true and correct copy of the Master Lease and the First Amendment and the Second Amendment thereto, and Sublandlord has not consented to any other amendments of the Master Lease. 

 
 23. Notices. All notices, demands and requests under this Sublease
shall be in writing, and shall not be effective unless given by prepaid registered or certified mail, return receipt requested, by nationally recognized commercial overnight courier service, by hand-delivery with a signed acknowledgment of receipt
by the receiving party, or by confirmed facsimile transmittal (if a facsimile number is listed below with an original copy thereof concurrently transmitted to the recipient by one of the other means described in this Section), addressed as follows:

  

			
	 If to Master Landlord:
	  	 Digital Lakeside, LLC

	 	  	 c/o Digital Realty Trust, L.P.

	 	  	 350 E. Cermak Road, Suite 800

	 	  	 Chicago, IL 60616

	 	  	 (312) 326-4510 (facsimile)

	 	  	 Attention: Property Manager

		
	 with a copy to:
	  	 Digital Realty Trust, L.P.

	 	  	 600 W. Seventh Street, Suite 500

	 	  	 Los Angeles, CA 90017

	 	  	 (213) 688-2811 (facsimile)

	 	  	 Attn: Christopher J. Kenney

		
	 If to Sublandlord:
	  	 Verio, Inc.

	 	  	 8005 South Chester Street, Suite 200

	 	  	 Englewood, CO 80112

	 	  	 (303) 708-2494 (facsimile)

	 	  	 Attn: SVP, Corporate Development

		
	 with a copy to:
	  	 Verio, Inc.

	 	  	 8005 South Chester Street, Suite 200

	 	  	 Englewood, CO 80112

	 	  	 (303) 708-2494 (facsimile)

	 	  	 Attn: SVP, General Counsel

	 	  	 

  

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	 and
	  	 Brownstein Hyatt & Farber

	 	  	 410 - 17th Street, Suite 2200

	 	  	 Denver, CO 80202

	 	  	 Attn: Gregory A. Vallin

	 	  	 Facsimile No: 303-223-1111

		
	 If to Subtenant:
	  	 Equinix Operating Co., Inc.

	 	  	 301 Velocity Way, 5th Floor

	 	  	 Foster City, CA 94404

	 	  	 Attn: Director of Real Estate

	 	  	 Facsimile No: 650-513-7913

		
	 and
	  	 Katten Muchin Rosenman LLP

	 	  	 525 West Monroe Street

	 	  	 Chicago, IL 60661

	 	  	 Attn: Howard M. Richard

	 	  	 Facsimile No: 312-577-8670

  
 or at such other address or facsimile
number as any party may hereafter designate by written notice to all other parties. The effective date of all notices shall be the date of receipt by the party to whom the notice is addressed or, if receipt of such notice is not accepted or is not
possible due to a change in address or facsimile number for which the sending party did not receive notice, the effective date of such a notice shall be the date of mailing such notice, if mailed, the date of delivery to a courier service, if
delivered by courier, the date of attempted delivery, if hand delivered, or the date of the attempted facsimile transmittal, if delivered by facsimile. 
  
 Notwithstanding the foregoing, all Rent payable hereunder shall be sent to Sublandlord by wire at the following wire address or in such other form or
address as Sublandlord may from time to time provide: 
  

			
	 Bank Name:
	  	 Wells Fargo Bank NA

	 	  	 1740 Broadway, Denver, CO 80274

	 ABA #:
	  	 [*]

	 Account Name:
	  	 Verio, Inc.

	 Account #:
	  	 [*]

  
 24. Brokers.
The parties hereto each represent and warrant to the other that they have not had any dealings with any real estate brokers, finders or agents in connection with this 

	*	CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTION HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 

  

 11 

 
Sublease other than Trammell Crow Company (“Sublandlord’s Broker”) and Staubach Midwest, LLC (“Subtenant’s
Broker”, collectively with Sublandlord’s Broker, the “Brokers”). Each party agrees to indemnify, defend (with counsel selected by the such indemnified party) and hold the other party, Master Landlord and their
respective nominees, successors and assigns harmless from any and all claims, costs, commissions, fees or damages by any person or firm (other than such indemnified party’s Broker, if applicable) whom such party authorized or employed, or acted
by implication to authorize or employ, to act for such party in connection with this Sublease. Sublandlord shall pay the Sublandlord’s Broker fees and Subtenant shall pay the Subtenant’s Broker fees pursuant to separate written agreements.

  
 25. Effectiveness of Sublease. This Sublease shall not
become effective until the Lease Effective Date, as defined herein. 
  
 26. Confidentiality. Each party hereto and its respective shareholders, partners, members, officers, directors, employees, agents and representatives will not disclose the subject matter or terms of this Sublease or the transaction
contemplated hereby without obtaining the prior written consent of the other party thereto, which written consent may be withheld at such other party’s sole discretion; provided, however, that the provisions of this Section 26 shall not apply
to any disclosure required by legal authorities or any disclosure to Maser Landlord or the lenders, architects, accountants, and attorneys of such disclosing party. 
  
 27. Miscellaneous. 
  
 (a) Time is of the essence of this Sublease and of the performance by Subtenant of each and every term and condition of this Sublease and of each and
every term and condition of the Master Lease which the Subtenant has herein agreed to keep and perform. 
  
 (b) This Sublease contains all of the agreements between Sublandlord and Subtenant relating to the Demised Premises and may not be modified except by
written instrument duly executed by the parties. 
  
 (c) The terms
and conditions of this Sublease shall extend to and be binding upon the heirs, successors and permitted assigns of the respective parties. 
  
 (d) Subtenant agrees that Sublandlord, or if Sublandlord is a partnership, its partners, whether general or limited, or if Sublandlord is a corporation,
its directors, officers or shareholders, or if Sublandlord is a limited liability company, its members, shall never be personally liable for the recovery of any judgment from Sublandlord. 
  
 (e) [INTENTIONALLY DELETED] 
  
 (f) Subtenant shall not permit any instruments to be recorded against the Demised Premises without the prior written consent of Sublandlord; provided,
however, that if Master Landlord consents to the recording of a memorandum of the Lease, then Sublandlord shall execute a recordable memorandum of this Sublease in a form acceptable to Sublandlord and shall consent to the recording of the same at
Subtenant’s cost and expense. 
  

 12 

 (g) This Sublease may be signed in any number of counterparts, each of which shall be an original but all
of which together shall constitute one instrument. Facsimile signatures shall be enforceable against the parties. 
  
 (h) This Sublease and the rights and obligations of parties hereto shall be interpreted, constructed and enforced in accordance with the laws of the State
of Illinois. 
  
 (i) If any party brings any suit, action,
counterclaim, or arbitration to enforce the provisions of this Agreement, the prevailing party shall be entitled to recover attorneys’ fees and litigation expenses in addition to court costs. 
  
 [Remainder of Page Intentionally Left Blank] 
  

 13 

 IN WITNESS WHEREOF, this Sublease has been duly executed by Sublandlord and Subtenant as of the dates set
forth below. 
  

			
	SUBLANDLORD:
	
	VERIO, INC., a Delaware corporation
		
	 	 	 /s/ Calvin Quan

	Name:	 	Calvin Quan
	Title:	 	CFO
	Dated:	 	July 13, 2005
	
	SUBTENANT:
	
	EQUINIX OPERATING CO., INC.,
	a Delaware corporation
		
	 	 	 /s/ Renee F. Lanam

	Name:	 	Renee F. Lanam
	Title:	 	Secretary
	Dated:	 	July 12, 2005ICOS Corporation 1999 Long-Term Incentive Plan

 Exhibit 10.1 
  
 ICOS CORPORATION 
  
 1999 LONG-TERM INCENTIVE PLAN 
  
 AS AMENDED AND RESTATED 
  
 EFFECTIVE AS OF JANUARY 27, 2005 
  
 (as amended and restated on July 19, 2005) 

							
				
	 SECTION 1.
	  	 	 	 INTRODUCTION
	  	1
				
	 SECTION 2.
	  	 	 	 DEFINITIONS
	  	1
				
	 	  	 (a)
	 	 “Affiliate”
	  	1
				
	 	  	 (b)
	 	 “Award”
	  	1
				
	 	  	 (c)
	 	 “Board”
	  	1
				
	 	  	 (d)
	 	 “Cashless Exercise”
	  	1
				
	 	  	 (e)
	 	 “Cause”
	  	1
				
	 	  	 (f)
	 	 “Change In Control”
	  	1
				
	 	  	 (g)
	 	 “Code”
	  	2
				
	 	  	 (h)
	 	 “Committee”
	  	2
				
	 	  	 (i)
	 	 “Common Stock”
	  	2
				
	 	  	 (j)
	 	 “Company”
	  	2
				
	 	  	 (k)
	 	 “Consultant”
	  	2
				
	 	  	 (l)
	 	 “Covered Employees”
	  	2
				
	 	  	 (m)
	 	 “Director”
	  	2
				
	 	  	 (n)
	 	 “Disability”
	  	2
				
	 	  	 (o)
	 	 “Employee”
	  	2
				
	 	  	 (p)
	 	 “Exchange Act”
	  	2
				
	 	  	 (q)
	 	 “Exercise Price”
	  	2
				
	 	  	 (r)
	 	 “Fair Market Value”
	  	3
				
	 	  	 (s)
	 	 “Fiscal Year”
	  	3
				
	 	  	 (t)
	 	 “Good Reason”
	  	3
				
	 	  	 (u)
	 	 “Grant”
	  	3
				
	 	  	 (v)
	 	 “Incentive Stock Option” or “ISO”
	  	3
				
	 	  	 (w)
	 	 “Key Employee”
	  	3
				
	 	  	 (x)
	 	 “Non-Employee Director”
	  	3
				
	 	  	 (y)
	 	 “Nonstatutory Stock Option” or “NSO”
	  	4
				
	 	  	 (z)
	 	 “Option”
	  	4
				
	 	  	 (aa)
	 	 “Optionee”
	  	4
				
	 	  	 (bb)
	 	 “Parent”
	  	4
				
	 	  	 (cc)
	 	 “Participant”
	  	4
				
	 	  	 (dd)
	 	 “Performance Goals”
	  	4
				
	 	  	 (ee)
	 	 “Performance Period”
	  	4
				
	 	  	 (ff)
	 	 “Plan”
	  	4
				
	 	  	 (gg)
	 	 “Prior Equity Plans”
	  	4
				
	 	  	 (hh)
	 	 “Prior Plan”
	  	4
				
	 	  	 (ii)
	 	 “Re-Price”
	  	4
				
	 	  	 (jj)
	 	 “Retirement”
	  	4
				
	 	  	 (kk)
	 	 “SAR Agreement”
	  	4

  

 i 

							
				
	 	  	 (ll)
	 	 “SEC”
	  	4
				
	 	  	 (mm)
	 	 “Section 16 Persons”
	  	4
				
	 	  	 (nn)
	 	 “Securities Act”
	  	5
				
	 	  	 (oo)
	 	 “Service”
	  	5
				
	 	  	 (pp)
	 	 “Share”
	  	5
				
	 	  	 (qq)
	 	 “Stock Appreciation Right” or “SAR”
	  	5
				
	 	  	 (rr)
	 	 “Stock Grant”
	  	5
				
	 	  	 (ss)
	 	 “Stock Grant Agreement”
	  	5
				
	 	  	 (tt)
	 	 “Stock Option Agreement”
	  	5
				
	 	  	 (uu)
	 	 “Stock Unit”
	  	5
				
	 	  	 (vv)
	 	 “Stock Unit Agreement”
	  	5
				
	 	  	 (ww)
	 	 “Shareholder Approval Date”
	  	5
				
	 	  	 (xx)
	 	 “Subsidiary”
	  	5
				
	 	  	 (yy)
	 	 “10-Percent Shareholder”
	  	5
				
	 SECTION 3.
	  	 	 	 ADMINISTRATION
	  	5
				
	 	  	 (a)
	 	 Committee Composition
	  	5
				
	 	  	 (b)
	 	 Authority of the Committee
	  	6
				
	 	  	 (c)
	 	 Indemnification
	  	6
				
	 SECTION 4.
	  	 	 	 GENERAL
	  	6
				
	 	  	 (a)
	 	 General Eligibility
	  	6
				
	 	  	 (b)
	 	 Incentive Stock Options
	  	6
				
	 	  	 (c)
	 	 Buyout of Awards
	  	7
				
	 	  	 (d)
	 	 Restrictions on Shares
	  	7
				
	 	  	 (e)
	 	 Beneficiaries
	  	7
				
	 	  	 (f)
	 	 Performance Conditions
	  	7
				
	 	  	 (g)
	 	 No Rights as a Shareholder
	  	7
				
	 	  	 (h)
	 	 Termination of Service
	  	7
				
	 	  	 (i)
	 	 Director Fees
	  	7
				
	 SECTION 5.
	  	 	 	 SHARES SUBJECT TO PLAN AND SHARE LIMITS
	  	8
				
	 	  	 (a)
	 	 Basic Limitation
	  	8
				
	 	  	 (b)
	 	 Prior Plan Shares
	  	8
				
	 	  	 (c)
	 	 Additional Shares
	  	8
				
	 	  	 (d)
	 	 Dividend Equivalents
	  	8
				
	 	  	 (e)
	 	 Share Limits
	  	8
				
	 	  	 	 	 (i)       Limits on Options
	  	8
				
	 	  	 	 	 (ii)      Limits on SARs
	  	9
				
	 	  	 	 	 (iii)     Limits on Stock Grants and Stock Units
	  	9
				
	 SECTION 6.
	  	 	 	 TERMS AND CONDITIONS OF OPTIONS
	  	9
				
	 	  	 (a)
	 	 Stock Option Agreement
	  	9
				
	 	  	 (b)
	 	 Number of Shares
	  	9
				
	 	  	 (c)
	 	 Exercise Price
	  	9
				
	 	  	 (d)
	 	 Exercisability and Term
	  	9

  

 ii 

							
	 	  	 (e)
	 	 Modifications or Assumption of Options
	  	9
	 	  	 (f)
	 	 Assignment or Transfer of Options
	  	9

  

							
				
	 SECTION 7.
	  	 	 	PAYMENT FOR OPTION SHARES	  	9
				
	 	  	 (a)
	 	 General Rule
	  	9
				
	 	  	 (b)
	 	 Surrender of Stock
	  	10
				
	 	  	 (c)
	 	 Cashless Exercise
	  	10
				
	 	  	 (d)
	 	 Other Forms of Payment
	  	10
				
	 SECTION 8.
	  	 	 	TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS	  	10
				
	 	  	 (a)
	 	 SAR Agreement
	  	10
				
	 	  	 (b)
	 	 Number of Shares
	  	10
				
	 	  	 (c)
	 	 Exercise Price
	  	10
				
	 	  	 (d)
	 	 Exercisability and Term
	  	10
				
	 	  	 (e)
	 	 Exercise of SARs
	  	10
				
	 	  	 (f)
	 	 Modification or Assumption of SARs
	  	10
				
	 	  	 (g)
	 	 Assignment or Transfer of SARs
	  	11
				
	 SECTION 9.
	  	 	 	TERMS AND CONDITIONS FOR STOCK GRANTS	  	11
				
	 	  	 (a)
	 	 Time, Amount and Form of Awards
	  	11
				
	 	  	 (b)
	 	 Stock Grant Agreement
	  	11
				
	 	  	 (c)
	 	 Payment for Stock Grants
	  	11
				
	 	  	 (d)
	 	 Vesting Conditions
	  	11
				
	 	  	 (e)
	 	 Assignment or Transfer of Stock Grants
	  	11
				
	 	  	 (f)
	 	 Voting and Dividend Rights
	  	11
				
	 	  	 (g)
	 	 Modification or Assumption of Stock Grants
	  	11
				
	 SECTION 10.
	  	 	 	TERMS AND CONDITIONS OF STOCK UNITS	  	12
				
	 	  	 (a)
	 	 Stock Unit Agreement
	  	12
				
	 	  	 (b)
	 	 Number of Shares
	  	12
				
	 	  	 (c)
	 	 Payment for Awards
	  	12
				
	 	  	 (d)
	 	 Vesting Conditions
	  	12
				
	 	  	 (e)
	 	 Voting and Dividend Rights
	  	12
				
	 	  	 (f)
	 	 Form and Time of Settlement of Stock Units
	  	12
				
	 	  	 (g)
	 	 Creditors’ Rights
	  	12
				
	 	  	 (h)
	 	 Modification or Assumption of Stock Units
	  	12
				
	 	  	 (i)
	 	 Assignment or Transfer of Stock Units
	  	12
				
	 SECTION 11.
	  	 	 	 PROTECTION AGAINST DILUTION
	  	13
				
	 	  	 (a)
	 	 Adjustments
	  	13
				
	 	  	 (b)
	 	 Participant Rights
	  	13
				
	 	  	 (c)
	 	 Fractional Shares
	  	13

  

 iii 

							
				
	 SECTION 12.
	  	 	 	 EFFECT OF A CHANGE IN CONTROL
	  	13
				
	 	  	 (a)
	 	 Merger or Reorganization
	  	13
				
	 	  	 (b)
	 	 Acceleration
	  	13
				
	 SECTION 13.
	  	 	 	 LIMITATIONS ON RIGHTS
	  	13
				
	 	  	 (a)
	 	 Retention Rights
	  	13
				
	 	  	 (b)
	 	 Shareholders’ Rights
	  	13
				
	 	  	 (c)
	 	 Regulatory Requirements
	  	14
				
	 	  	 (d)
	 	 Dissolution
	  	14
				
	 SECTION 14.
	  	 	 	 WITHHOLDING TAXES
	  	14
				
	 	  	 (a)
	 	 General
	  	14
				
	 	  	 (b)
	 	 Share Withholding
	  	14
				
	 SECTION 15.
	  	 	 	 DURATION AND AMENDMENTS
	  	14
				
	 	  	 (a)
	 	 Term of the Plan
	  	14
				
	 	  	 (b)
	 	 Right to Amend or Terminate the Plan
	  	14
				
	 SECTION 16.
	  	 	 	 EXECUTION
	  	14

  

 iv 

 
ICOS CORPORATION 
 1999 LONG-TERM INCENTIVE PLAN 
 AS AMENDED AND RESTATED 
 EFFECTIVE AS OF JANUARY 27, 2005 
 (as amended and restated on July 19, 2005) 
  
 SECTION 1.    INTRODUCTION. 
  
 The Company’s Board of Directors hereby amends, restates and renames the Prior Plan as the ICOS Corporation 1999 Long-Term Incentive Plan effective
as of January 27, 2005 (the “Restatement Date”). The Plan is effective on the Restatement Date subject to obtaining Company shareholder approval as provided in Section 15 below. 
  
 The purpose of the Plan is to promote the long-term success of the Company
and the creation of shareholder value by offering Key Employees an opportunity to acquire a proprietary interest in the success of the Company, or to increase such interest, and to encourage such Key Employees to continue to provide services to the
Company and to attract new individuals with outstanding qualifications. 
  
 The Plan seeks to achieve this purpose by providing for Awards in the form of Options (which may constitute Incentive Stock Options or Nonstatutory Stock Options), Stock Appreciation Rights, Stock Grants and Stock
Units. 
  
 The Plan shall be governed by, and construed in
accordance with, the laws of the State of Washington (except its choice-of-law provisions). Capitalized terms shall have the meaning provided in Section 2 unless otherwise provided in this Plan or any related Stock Option Agreement, SAR Agreement,
Stock Grant Agreement or Stock Unit Agreement. 
  
 SECTION 2.    DEFINITIONS. 
  
 (a)    “Affiliate” means any entity other than a Subsidiary, if the Company and/or one or more Subsidiaries own not less than 50% of such entity. For purposes of determining an
individual’s “Service,” this definition shall include any entity other than a Subsidiary, if the Company, a Parent and/or one or more Subsidiaries own not less than 50% of such entity. 
  
 (b)    “Award” means any award of an Option,
SAR, Stock Grant or Stock Unit under the Plan. 
  
 (c)    “Board” means the Board of Directors of the Company, as constituted from time to time. 
  
 (d)    “Cashless Exercise” means, to the extent that a Stock Option Agreement so provides and as permitted by applicable
law, a program approved by the Committee in which payment may be made all or in part by delivery (on a form prescribed by the Committee) of an irrevocable direction to a securities broker to sell Shares and to deliver all or part of the sale
proceeds to the Company in payment of the aggregate Exercise Price and any applicable tax withholding obligations (up to the maximum amount permitted by applicable law) relating to the Option. 
  
 (e)    “Cause” means, except as may otherwise
be provided in a Participant’s employment agreement or Award agreement, a conviction of a Participant for a felony crime or the failure of a Participant to contest prosecution for a felony crime, or a Participant’s misconduct, fraud or
dishonesty (as such terms are defined by the Committee in its sole discretion), or any unauthorized use or disclosure of confidential information or trade secrets, in each case as determined by the Committee, and the Committee’s determination
shall be conclusive and binding. 
  
 (f)    “Change In Control” except as may otherwise be provided in a Participant’s employment agreement or Award agreement, means the occurrence of any of the following: 
  
 (i)    The consummation of a merger or
consolidation of the Company with or into another entity or any other corporate reorganization, if more than 50% of the combined voting power of the continuing or surviving entity’s securities outstanding immediately after such merger,
consolidation or 

  

 1 

 
other reorganization is owned by persons who were not shareholders of the Company immediately prior to such merger, consolidation or other reorganization;

  
 (ii)    The sale,
transfer or other disposition of all or substantially all of the Company’s assets; 
  
 (iii)    A change in the composition of the Board, as a result of which fewer than one-half of the incumbent directors
are directors who either (i) had been directors of the Company on the date 24 months prior to the date of the event that may constitute a Change in Control (the “original directors”) or (ii) were elected, or nominated for election, to the
Board with the affirmative votes of at least a majority of the aggregate of the original directors who were still in office at the time of the election or nomination and the directors whose election or nomination was previously so approved;

  
 (iv)    Any transaction
as a result of which any person becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing at least 20% of the total voting power represented by the
Company’s then outstanding voting securities. For purposes of this Paragraph (iv), the term “person” shall have the same meaning as when used in Sections 13(d) and 14(d) of the Exchange Act but shall exclude: 
  
 (A)    A trustee or other fiduciary
holding securities under an employee benefit plan of the Company or a subsidiary of the Company; 
  
 (B)    A corporation owned directly or indirectly by the shareholders of the Company in substantially the same
proportions as their ownership of the common stock of the Company; and 
  
 (C)    The Company; or 
  
 (v)    A complete liquidation or dissolution of the Company. 
  
 A transaction shall not constitute a Change in Control if its sole purpose is to change the state of the Company’s incorporation or
to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transactions. 
  
 (g)    “Code” means the Internal Revenue Code of 1986, as amended, and the regulations and
interpretations promulgated thereunder. 
  
 (h)    “Committee” means a committee described in Section 3. 
  
 (i)    “Common Stock” means the Company’s common stock. 
  
 (j)    “Company” means ICOS Corporation, a Washington corporation. 
  
 (k)    “Consultant” means an individual who
performs bona fide services to the Company, a Parent, a Subsidiary or an Affiliate, other than as an Employee or Director or Non-Employee Director. 
  
 (l)    “Covered Employees” means those persons who are subject to the limitations of Code Section 162(m). 
  
 (m)    “Director” means a member of the Board
who is also an Employee. 
  
 (n)    “Disability” means that the Key Employee is classified as disabled under a long-term disability policy of the Company or, if no such policy applies, the Key Employee is unable to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months.

  
 (o)    “Employee” means any
individual who is a common-law employee of the Company, a Parent, a Subsidiary or an Affiliate. 
  
 (p)    “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 (q)    “Exercise Price” means, in the case of
an Option, the amount for which a Share may be purchased upon exercise of such Option, as specified in the applicable Stock Option Agreement. “Exercise Price,” in 

  

 2 

 
the case of a SAR, means an amount, as specified in the applicable SAR Agreement, which is subtracted from the Fair Market Value in determining the amount
payable upon exercise of such SAR. 
  
 (r)    “Fair Market Value” means the market price of a Share as determined in good faith by the Committee. The Fair Market Value shall be determined by the following: 
  
 (i) If the Shares were traded over-the-counter or listed with NASDAQ on the
date in question, then the Fair Market Value shall be equal to the last transaction price quoted by the NASDAQ system for the date in question or (ii) if the Common Stock is listed on the New York Stock Exchange or the American Stock Exchange on the
date in question, the Fair Market Value is the closing selling price for the Common Stock as such price is officially quoted in the composite tape of transactions on such exchange for the date in question; provided, however, that if there is no such
reported price for the Common Stock for the date in question under (i) or (ii), then such price on the last preceding date for which such price exists shall be determinative of Fair Market Value. 
  
 If neither (i) or (ii) are applicable, then the Fair Market Value shall be determined by the
Committee in good faith on such basis as it deems appropriate. 
  
 Whenever
possible, the determination of Fair Market Value by the Committee shall be based on the prices reported in the Western Edition of The Wall Street Journal. Such determination shall be conclusive and binding on all persons. 
  
 (s)    “Fiscal Year” means the Company’s
fiscal year. 
  
 (t)    “Good
Reason” means with respect to a Participant and except as may otherwise be provided in a Participant’s employment agreement or Award agreement, the occurrence (without Participant’s consent) of any of the following events or
conditions within one year after a Change in Control: (i) a reduction in the Participant’s annual base salary; (ii) the Company or a successor entity requiring the Participant (without the Participant’s consent) to be based at any place
outside a 35-mile radius of his or her place of employment prior to the Change in Control, except for reasonably required travel on the successor entity’s business that is not materially greater than such travel requirements prior to the Change
in Control; (iii) a material breach by the Company or by its successor entity of its obligations to Participant under the Plan or an Award agreement; or (iv) a material and substantial diminution in the Participant’s job responsibilities as in
effect immediately prior to a Change in Control (as determined by the Committee in its sole discretion) or any other action by the Company or a successor entity which results in such material and substantial diminution, excluding for this purpose an
isolated and inadvertent action not taken in bad faith and which is remedied by the Company or successor entity within thirty days after receipt of notice thereof given by the Participant and further provided that neither mere changes in title
and/or reporting relationship nor reassignment following a Change in Control to a position that is similar to the position held immediately prior to the Change in Control shall constitute a material and substantial diminution in job responsibilities
(and where the Committee shall have sole discretion to determine whether or not the new position is similar to the prior position). Before “Good Reason” has been deemed to have occurred, a Participant must give the Company written notice
detailing why the Participant believes a Good Reason event has occurred and such notice must be provided to the Company within sixty days of the initial occurrence of such alleged Good Reason event(s). The Company shall then have thirty days after
its receipt of written notice to cure the items cited in the written notice so that “Good Reason” will have not formally occurred with respect to the event(s) in question. 
  
 (u)    “Grant” means any grant of an Award under the Plan. 
  
 (v)    “Incentive Stock Option” or
“ISO” means an incentive stock option described in Code Section 422. 
  
 (w)    “Key Employee” means an Employee, Director, Non-Employee Director or Consultant who has been selected by the Committee to receive an Award under the Plan. 
  
 (x)    “Non-Employee Director” means a member
of the Board who is not an Employee. 
  

 3 

 (y)    “Nonstatutory Stock Option” or “NSO” means a stock option
that is not an ISO. 
  
 (z)    “Option” means an ISO or NSO granted under the Plan entitling the Optionee to purchase Shares. 
  
 (aa)    “Optionee” means an individual, estate or other entity that holds an Option. 
  
 (bb)    “Parent” means any corporation (other
than the Company) in an unbroken chain of corporations ending with the Company, if each of the corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other
corporations in such chain. A corporation that attains the status of a Parent on a date after the adoption of the Plan shall be considered a Parent commencing as of such date. 
  
 (cc)    “Participant” means an individual or estate or other entity that holds an Award.

  
 (dd)    “Performance Goals”
means one or more objective measurable performance factors as determined by the Committee with respect to each Performance Period based upon one or more factors, including, but not limited to: (i) operating income; (ii) earnings before interest,
taxes, depreciation and amortization (“EBITDA”); (iii) earnings; (iv) cash flow; (v) market share; (vi) sales or revenue; (vii) expenses; (viii) cost of goods sold; (ix) profit/loss or profit margin; (x) working capital; (xi) return on
equity or assets; (xii) earnings per share; (xiii) economic value added (“EVA”); (xiv) stock price; (xv) price/earnings ratio; (xvi) debt or debt-to-equity; (xvii) accounts receivable; (xviii) writeoffs; (xix) cash; (xx) assets; (xxi)
liquidity; (xxii) operations; (xxiii) research or related milestones; (xxiv) synthesis of specified materials; (xxv) intellectual property (e.g., patents); (xxvi) product development; (xxvii) regulatory activity; (xxviii) clinical studies; (xxix)
manufacturing, production or inventory; (xxx) product quality control; (xxxi) management; (xxxii) human resources; (xxxiii) corporate governance; (xxxiv) compliance program; (xxxv) legal matters; (xxxvi) internal controls; (xxxvii) policies and
procedures; (xxxviii) accounting and reporting; (xxxix) information technology; (xl) site, plant or building development; (xli) business development; (xlii) strategic alliances, licensing and partnering; (xliii) mergers and acquisitions or
divestitures; and/or (xliv) financings, each with respect to the Company and/or one or more of its affiliates or operating units. Awards issued to persons who are not Covered Employees may take into account other factors. 
  
 (ee)    “Performance Period” means any period
not exceeding 36 months as determined by the Committee, in its sole discretion. The Committee may establish different Performance Periods for different Participants, and the Committee may establish concurrent or overlapping Performance Periods.

  
 (ff)    “Plan” means this ICOS
Corporation 1999 Long-Term Incentive Plan as it may be amended from time to time. 
  
 (gg)    “Prior Equity Plans” means the Company’s 1989 Stock Option Plan and its 1991 Stock Option Plan for Nonemployee Directors. 
  
 (hh)    “Prior Plan” means the ICOS
Corporation 1999 Stock Option Plan as amended on January 21, 2004. 
  
 (ii)    “Re-Price” means that the Company has lowered or reduced the Exercise Price of outstanding Options and/or outstanding SARs for any Participant(s) in a manner described by Item 402(i)(1) of SEC
Regulation S-K (or its successor provision). 
  
 (jj)    “Retirement” means an Employee’s voluntary termination of employment from the Company (or Parent, Subsidiary or Affiliate), by reason other than Disability or death, after all of the following has
occurred: (i) the Employee has completed five or more years of continuous employment, (ii) the Employee has attained age 55 and (iii) the sum of the Employee’s age (rounded down to the nearest whole number) and full years of employment (rounded
down to the nearest whole number) is at least 65. 
  
 (kk)    “SAR Agreement” means the agreement described in Section 8 evidencing each Award of a Stock Appreciation Right. 
  

(ll)    “SEC” means the Securities and Exchange Commission. 
  
 (mm)    “Section 16 Persons” means those
officers, directors or other persons who are subject to Section 16 of the Exchange Act. 
  

 4 

 (nn)    “Securities Act” means the Securities Act of 1933, as amended.

  
 (oo)    “Service” means service
as an Employee, Director, Non-Employee Director or Consultant. A Participant’s Service does not terminate if he or she is a common-law employee and goes on a bona fide leave of absence that was approved by the Company in writing and the terms
of the leave provide for continued service crediting, or when continued service crediting is required by applicable law. However, for purposes of determining whether an Option is entitled to continuing ISO status, a common-law employee’s
Service will be treated as terminating ninety (90) days after such Employee went on leave, unless such Employee’s right to return to active work is guaranteed by law or by a contract. Service terminates in any event when the approved leave
ends, unless such Employee immediately returns to active work. The Committee determines which leaves count toward Service, and when Service terminates for all purposes under the Plan. 
  
 (pp)    “Share” means one share of Common Stock. 
  
 (qq)    “Stock Appreciation Right” or
“SAR” means a stock appreciation right awarded under the Plan. 
  
 (rr)    “Stock Grant” means Shares awarded under the Plan. 
  
 (ss)    “Stock Grant Agreement” means the agreement described in Section 9 evidencing each Award of a Stock Grant.

  
 (tt)    “Stock Option
Agreement” means the agreement described in Section 6 evidencing each Award of an Option. 
  
 (uu)    “Stock Unit” means a bookkeeping entry representing the equivalent of one Share, as awarded under the Plan.

  
 (vv)    “Stock Unit Agreement”
means the agreement described in Section 10 evidencing each Award of a Stock Unit. 
  
 (ww)    “Shareholder Approval Date” means the date that the Company’s shareholders approve this Plan provided such approval occurs within one year of the Restatement Date.

  
 (xx)    “Subsidiary” means any
corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting
power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date. 
  
 (yy)    “10-Percent Shareholder” means an
individual who owns more than 10% of the total combined voting power of all classes of outstanding stock of the Company, its Parent or any of its Subsidiaries. In determining stock ownership, the attribution rules of Section 424(d) of the Code shall
be applied. 
  
 SECTION 3.    ADMINISTRATION.

  
 (a)    Committee Composition. A
Committee appointed by the Board shall administer the Plan. The Board shall designate one of the members of the Committee as chairperson. Unless the Board provides otherwise, the Company’s Compensation Committee shall be the Committee. If no
Committee has been appointed, the entire Board shall constitute the Committee. Members of the Committee shall serve for such period of time as the Board may determine and shall be subject to removal by the Board at any time. The Board may also at
any time terminate the functions of the Committee and reassume all powers and authority previously delegated to the Committee. 
  
 The Committee shall have membership composition which enables (i) Awards to Section 16 Persons to qualify as exempt from liability under Section 16(b) of
the Exchange Act and (ii) Awards to Covered Employees to qualify as performance-based compensation as provided under Code Section 162(m). 
  
 The Board may also appoint one or more separate committees of the Board, each composed of two or more directors of the Company who need not qualify under
Rule 16b-3 or Code Section 162(m), that may 

  

 5 

 
administer the Plan with respect to Key Employees who are not Section 16 Persons or Covered Employees, respectively, may grant Awards under the Plan to such
Key Employees and may determine all terms of such Awards. To the extent permitted by applicable law, the Board may also appoint a committee, composed of one or more officers of the Company, that may authorize Awards to Employees (who are not Section
16 Persons or Covered Employees) within parameters specified by the Board and consistent with any limitations imposed by applicable law. 
  
 Notwithstanding the foregoing, the Board shall constitute the Committee and shall administer the Plan with respect to all Awards granted to Non-Employee
Directors. 
  
 (b)    Authority of the
Committee. Subject to the provisions of the Plan, the Committee shall have full authority and discretion to take any actions it deems necessary or advisable for the administration of the Plan. Such actions shall include: 
  

	 	(i)	 	selecting Key Employees who are to receive Awards under the Plan; 

  

	 	(ii)	 	determining the type, number, vesting requirements and other features and conditions of such Awards and amending such Awards; 

  

	 	(iii)	 	correcting any defect, supplying any omission, or reconciling any inconsistency in the Plan or any Award agreement; 

  

	 	(iv)	 	accelerating the vesting, or extending the post-termination exercise term, of Awards at any time and under such terms and conditions as it deems appropriate;

  

	 	(v)	 	interpreting the Plan; 

  

	 	(vi)	 	making all other decisions relating to the operation of the Plan; and 

  

	 	(vii)	 	adopting such plans or subplans as may be deemed necessary or appropriate to provide for the participation by non-U.S. employees of the Company and its Subsidiaries and Affiliates,
which plans and/or subplans shall be attached hereto as Appendices. 

  
 The Committee may adopt such rules or guidelines as it deems appropriate to implement the Plan. The Committee’s determinations under the Plan shall be final and binding on all persons. 
  
 (c)    Indemnification. To the maximum extent permitted
by applicable law, each member of the Committee, or of the Board, shall be indemnified and held harmless by the Company against and from (i) any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in
connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to act under the Plan or any Stock Option Agreement, SAR
Agreement, Stock Grant Agreement or Stock Unit Agreement, and (ii) from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such claim, action,
suit, or proceeding against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of
indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company’s Articles of Incorporation or Bylaws, by contract, as a matter of law, or otherwise, or under any power that
the Company may have to indemnify them or hold them harmless. 
  
 SECTION 4.    GENERAL. 
  
 (a)    General Eligibility. Only Employees, Directors, Non-Employee Directors and Consultants shall be eligible for designation as Key Employees by the Committee. 
  
 (b)    Incentive Stock Options. Only Key Employees who
are common-law employees of the Company, a Parent or a Subsidiary shall be eligible for the grant of ISOs. In addition, a Key Employee who is a 10-Percent Shareholder shall not be eligible for the grant of an ISO unless the requirements set forth in
Section 422(c)(5) of the Code are satisfied. 
  

 6 

 (c)    Buyout of Awards. The Committee may at any time (i) offer to buy out for a
payment in cash or cash equivalents (including without limitation Shares valued at Fair Market Value that may or may not be issued from this Plan) an Award previously granted or (ii) authorize a Participant to elect to cash out an Award previously
granted, in either case at such time and based upon such terms and conditions as the Committee shall establish. Notwithstanding the preceding sentence, unless there is approval by the Company shareholders, the Committee may not exercise its
authority, pursuant to this Section 4(c), to offer to buy out an Award previously granted, or to authorize a Participant to elect to cash out an Award previously granted. 
  
 (d)    Restrictions on Shares. Any Shares issued pursuant to an Award shall be subject to such rights of
repurchase, rights of first refusal and other transfer restrictions as the Committee may determine. Such restrictions shall apply in addition to any restrictions that may apply to holders of Shares generally and shall also comply to the extent
necessary with applicable law. In no event shall the Company be required to issues fractional Shares under this Plan. 
  
 (e)    Beneficiaries. A Participant may designate one or more beneficiaries with respect to an Award by timely filing the prescribed
form with the Company. A beneficiary designation may be changed by filing the prescribed form with the Company at any time before the Participant’s death. If no beneficiary was designated or if no designated beneficiary survives the
Participant, then after a Participant’s death any vested Award(s) shall be transferred or distributed to the Participant’s estate. 
  
 (f)    Performance Conditions. The Committee may, in its discretion, include performance conditions in an Award. If performance
conditions are included in Awards to Covered Employees, then such Awards will be subject to the achievement of Performance Goals established by the Committee. Such Performance Goals shall be established and administered pursuant to the requirements
of Code Section 162(m). Before any Shares underlying an Award or any Award payments are released to a Covered Employee with respect to a Performance Period, the Committee shall certify in writing that the Performance Goals for such Performance
Period have been satisfied. Awards with performance conditions that are granted to Key Employees who are not Covered Employees need not comply with the requirements of Code Section 162(m). 
  
 (g)    No Rights as a Shareholder. A Participant, or a
transferee of a Participant, shall have no rights as a shareholder with respect to any Common Stock covered by an Award until such person becomes entitled to receive such Common Stock, has satisfied any applicable withholding or tax obligations
relating to the Award and has been issued the applicable stock certificate by the Company. 
  
 (h)    Termination of Service. Unless the applicable Award agreement or employment agreement provides otherwise, the following rules shall govern the vesting, exercisability and term of outstanding
Awards held by a Participant in the event of termination of such Participant’s Service (in all cases subject to the term of the Option or SAR as applicable): (i) upon termination of Service for any reason, all unvested portions of any
outstanding Awards shall be forfeited without consideration and the vested portions of any outstanding Stock Units shall be settled upon termination; (ii) if the Service of a Participant is terminated for Cause, then all Options, SARs, unvested
portions of Stock Units and unvested portions of Stock Grants shall terminate and be forfeited immediately without consideration; (iii) if the Service of Participant is terminated for any reason other than for Cause, death, Disability or Retirement,
then the vested portion of his/her then-outstanding Options/SARs may be exercised by such Participant or his or her personal representative within three months after the date of such termination; (iv) in the event of the Retirement of a Participant,
the vested portion of his/her then-outstanding Options/SARs may be exercised within three years after the date of Retirement; or (v) if the Service of a Participant is terminated due to death or Disability, the vested portion of his/her
then-outstanding Options/SARs may be exercised within eighteen months after the date of termination of Service. In the event of a termination of an Employee’s Service due to Disability, an unexercised ISO will be treated as an NSO one year and
one day after such termination. 
  
 (i)    Director Fees. If the Board affirmatively determines to implement this Section 4(i), then each Non-Employee Director may be awarded a Stock Grant in accordance with the terms and conditions contained in this
Section 4(i). 
  
 (i) Participation
Elections.    Each Non-Employee Director may elect to receive a Stock Grant under the Plan in lieu of payment of a portion of his or her annual retainer. Such an election may be for 

  

 7 

 
any dollar or percentage amount equal to at least 25% of the Non-Employee Director’s annual retainer (up to a limit of 100% of the annual retainer of
Non-Employee Directors). The election must be made prior to the beginning of the annual board of directors cycle which shall be any twelve month continuous period designated by the Board (the “Board Cycle”). Any amount of the annual
retainer not elected to be received as a Stock Grant shall be payable in cash in accordance with the Company’s standard payment procedures. 
  
 (ii)    Grants of Stock.    As soon as reasonably practicable following the commencement of
each Board Cycle, each Non-Employee Director who has timely made the election described in Section 4(i)(i) with respect to that Board Cycle shall be granted a number of restricted, unvested Shares pursuant to a Stock Grant having a Fair Market Value
on the date of grant equal to 100% of the amount of the annual retainer elected to be received as a Stock Grant under Section 4(i)(i) for such Board Cycle, rounded down to the nearest full Share. Such Stock Grant will be evidenced by an executed
Stock Grant Agreement between the Company and the electing Non-Employee Director. Such Stock Grant will vest in four pro-rata installments at the end of each quarter of the applicable Board Cycle subject to continued Service as a Non-Employee
Director. 
  
 (iii)    Other Terms. Shares granted under this Section 4(i) shall otherwise be subject to the terms of the Plan applicable to Non-Employee Directors or to Participants generally (other than provisions
specifically applying only to Employees). 
  
 SECTION 5.    SHARES SUBJECT TO PLAN AND SHARE LIMITS. 
  
 (a)    Basic Limitation. The stock issuable under the Plan shall be authorized but unissued Shares or treasury Shares. The aggregate
number of Shares reserved for Awards granted on or after the Restatement Date under the Plan shall not exceed the number of Shares available pursuant to Section 5(b) below plus an additional 2,900,000 Shares. Notwithstanding anything to the
contrary, the aggregate maximum number of Shares issuable under the Plan shall not exceed 15,371,522. 
  
 (b)    Prior Plan Shares. Any authorized Shares not issued or subject to outstanding stock options under the Prior Plan on the
Shareholder Approval Date and any shares subject to outstanding stock options under the Prior Plan (including Shares from the Prior Equity Plans as provided by Section 4.1 of the Prior Plan) on the Shareholder Approval Date that cease to be subject
to such stock options (other than by reason of exercise of the stock options to the extent they are exercised for Shares) shall cease to be available for grant and issuance under the Prior Plan, but shall be available for issuance under the Plan.

  
 (c)    Additional Shares. If Awards are
forfeited or are terminated for any other reason before being exercised, then the Shares underlying such Awards shall again become available for Awards under the Plan. If SARs are exercised or Stock Units are settled in Shares, then only the number
of Shares (if any) actually issued in settlement of such SARs or Stock Units shall reduce the number available under Section 5(a) and the balance shall again become available for Awards under the Plan. If a Participant pays the exercise price of an
Option (or of a stock option granted under a Prior Plan) by surrendering previously owned Shares (or by stock attestation) and/or, as permitted by the Committee, pays any withholding tax obligation with respect to an Award (or with respect to a
stock option granted under a Prior Plan) by electing to have Shares withheld or surrendering previously owned Shares (or by stock attestation), the surrendered Shares and the Shares withheld to pay taxes shall be available for issuance under the
Plan and shall not count toward the maximum number of shares that may be issued under the Plan as set forth in Section 5(a). 
  
 (d)    Dividend Equivalents. Any dividend equivalents distributed under the Plan shall not be applied against the number of Shares
available for Awards. 
  
 (e)    Share
Limits. All of the Share limits specified in this Section 5(e) shall include grants that may have been issued under the Prior Plan (or under the Prior Equity Plans). 
  
 (i)    Limits on Options.    No Key Employee shall receive
Options to purchase Shares during any Fiscal Year covering in excess of 2,000,000 Shares. The aggregate maximum number of Shares that may be issued in connection with ISOs shall be 15,371,522 Shares. 
  

 8 

 (ii)    Limits on SARs.    No Key Employee
shall receive Awards of SARs during any Fiscal Year covering in excess of 2,000,000 Shares. 
  
 (iii)    Limits on Stock Grants and Stock Units.    No Key Employee shall receive Stock
Grants or Stock Units during any Fiscal Year covering, in the aggregate, in excess of 1,000,000 Shares. 
  
 SECTION 6.    TERMS AND CONDITIONS OF OPTIONS. 
  
 (a)    Stock Option Agreement. Each Grant of an Option under the Plan shall be evidenced by a Stock Option Agreement between the
Optionee and the Company. Such Option shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions that are not inconsistent with the Plan and that the Committee deems appropriate for
inclusion in a Stock Option Agreement (including without limitation any performance conditions). The provisions of the various Stock Option Agreements entered into under the Plan need not be identical. The Stock Option Agreement shall also specify
whether the Option is an ISO or an NSO. 
  
 (b)    Number of Shares. Each Stock Option Agreement shall specify the number of Shares that are subject to the Option and shall be subject to adjustment of such number in accordance with Section 11. 
  
 (c)    Exercise Price. An Option’s Exercise Price
shall be established by the Committee and set forth in a Stock Option Agreement. The Exercise Price of an Option shall not be less than 100% of the Fair Market Value (110% for ISO grants to 10-Percent Shareholders) on the date of Grant. 

 
 (d)    Exercisability and Term. Each Stock Option
Agreement shall specify the date when all or any installment of the Option is to become exercisable. The Stock Option Agreement shall also specify the term of the Option; provided that the term of an Option shall in no event exceed ten years from
the date of Grant. A Stock Option Agreement may provide for accelerated vesting in the event of the Participant’s death, Disability or Retirement or other events. Notwithstanding the previous sentence, an ISO that is granted to a 10-Percent
Shareholder shall have a maximum term of five years. Notwithstanding any other provision of the Plan, no Option can be exercised after the expiration date provided in the applicable Stock Option Agreement. 
  
 (e)    Modifications or Assumption of Options. Within
the limitations of the Plan, the Committee may modify, extend or assume outstanding options or may accept the cancellation of outstanding options (whether granted by the Company or by another issuer) in return for the grant of new Options for the
same or a different number of Shares and at the same or a different Exercise Price. Notwithstanding the preceding sentence or anything to the contrary, unless there is approval by the Company shareholders, the Committee may not Re-Price outstanding
Options. No modification of an Option shall, without the consent of the Optionee, alter or impair his or her rights or obligations under such Option. 
  
 (f)    Assignment or Transfer of Options. Except as otherwise provided in the applicable Stock Option Agreement and then only to the
extent permitted by applicable law, no Option shall be transferable by the Optionee other than by will or by the laws of descent and distribution. Except as otherwise provided in the applicable Stock Option Agreement, an Option may be exercised
during the lifetime of the Optionee only or by the guardian or legal representative of the Optionee. No Option or interest therein may be assigned, pledged or hypothecated by the Optionee during his or her lifetime, whether by operation of law or
otherwise, or be made subject to execution, attachment or similar process. 
  
 SECTION 7.    PAYMENT FOR OPTION SHARES. 
  
 (a)    General Rule. The entire Exercise Price of Shares issued upon exercise of Options shall be payable in cash at the time when such Shares are purchased, except as follows and if so provided
for in an applicable Stock Option Agreement: 
  
 (i)    In the case of an ISO granted under the Plan, payment shall be made only pursuant to the express provisions of the applicable Stock Option Agreement. The Stock Option Agreement may specify that payment may be made
in any form(s) described in this Section 7. 
  

 9 

 (ii)    In the case of an NSO granted under the Plan, the Committee
may, in its discretion at any time, accept payment in any form(s) described in this Section 7. 
  
 (b)    Surrender of Stock. To the extent that this Section 7(b) is applicable, payment for all or any part of the Exercise Price may
be made with Shares which have already been owned by the Optionee for such duration as is necessary to avoid a financial accounting charge to the Company’s earnings (to the extent permitted by applicable financial accounting principles). Such
Shares shall be valued at their Fair Market Value. 
  
 (c)    Cashless Exercise. To the extent that this Section 7(c) is applicable, payment for all or a part of the Exercise Price may be made through Cashless Exercise. 
  
 (d)    Other Forms of Payment. To the extent that this
Section 7(d) is applicable, payment may be made in any other form that is consistent with applicable laws, regulations and rules and approved by the Committee. 
  

SECTION 8.    TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS. 
  
 (a)    SAR Agreement. Each Award of a SAR under the Plan shall be evidenced by a SAR Agreement between
the Participant and the Company. Such SAR shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan (including without limitation any performance conditions). A SAR Agreement
may provide for a maximum limit on the amount of any payout notwithstanding the Fair Market Value on the date of exercise of the SAR. The provisions of the various SAR Agreements entered into under the Plan need not be identical. SARs may be granted
in consideration of a reduction in the Participant’s other compensation. 
  
 (b)    Number of Shares. Each SAR Agreement shall specify the number of Shares to which the SAR pertains and is subject to adjustment of such number in accordance with Section 11. 
  
 (c)    Exercise Price. Each SAR Agreement shall specify
the Exercise Price. A SAR Agreement may specify an Exercise Price that varies in accordance with a predetermined formula while the SAR is outstanding. The Exercise Price of a SAR shall not be less than 100% of the Fair Market Value on the date of
Grant. 
  
 (d)    Exercisability and Term.
Each SAR Agreement shall specify the date when all or any installment of the SAR is to become exercisable. The SAR Agreement shall also specify the term of the SAR which shall not exceed ten years from the date of Grant. A SAR Agreement may provide
for accelerated exercisability in the event of the Participant’s death, Disability or Retirement or other events and may provide for expiration prior to the end of its term in the event of the termination of the Participant’s Service. SARs
may be awarded in combination with Options or Stock Grants, and such an Award may provide that the SARs will not be exercisable unless the related Options or Stock Grants are forfeited. A SAR may be included in an ISO only at the time of Grant but
may be included in an NSO at the time of Grant or at any subsequent time, but not later than six months before the expiration of such NSO. A SAR granted under the Plan may provide that it will be exercisable only in the event of a Change in Control.

  
 (e)    Exercise of SARs. If, on the date
when a SAR expires, the Exercise Price under such SAR is less than the Fair Market Value on such date but any portion of such SAR has not been exercised or surrendered, then such SAR may automatically be deemed to be exercised as of such date with
respect to such portion to the extent so provided in the applicable SAR agreement. Upon exercise of a SAR, the Participant (or any person having the right to exercise the SAR after Participant’s death) shall receive from the Company (i) Shares,
(ii) cash or (iii) any combination of Shares and cash, as the Committee shall determine. The amount of cash and/or the Fair Market Value of Shares received upon exercise of SARs shall, in the aggregate, be equal to the amount by which the Fair
Market Value (on the date of surrender) of the Shares subject to the SARs exceeds the Exercise Price of the Shares. 
  
 (f)    Modification or Assumption of SARs. Within the limitations of the Plan, the Committee may modify, extend or assume outstanding
SARs or may accept the cancellation of outstanding SARs (including stock appreciation rights granted by another issuer) in return for the grant of new SARs for the same or a different number of Shares and at the same or a different Exercise Price.
Notwithstanding the preceding sentence or 

  

 10 

 
anything to the contrary, unless there is approval by the Company shareholders, the Committee may not Re- Price outstanding SARs. No modification of a SAR
shall, without the consent of the Participant, alter or impair his or her rights or obligations under such SAR. 
  
 (g)    Assignment or Transfer of SARs. Except as otherwise provided in the applicable SAR Agreement and then only to the extent
permitted by applicable law, no SAR shall be transferable by the Participant other than by will or by the laws of descent and distribution. Except as otherwise provided in the applicable SAR Agreement, a SAR may be exercised during the lifetime of
the Participant only or by the guardian or legal representative of the Participant. No SAR or interest therein may be assigned, pledged or hypothecated by the Participant during his or her lifetime, whether by operation of law or otherwise, or be
made subject to execution, attachment or similar process. 
  
 SECTION 9.    TERMS AND CONDITIONS FOR STOCK GRANTS. 
  
 (a)    Time, Amount and Form of Awards. Awards under this Section 9 may be granted in the form of a Stock Grant. A Stock Grant may
also be awarded in combination with NSOs, and such an Award may provide that the Stock Grant will be forfeited in the event that the related NSOs are exercised. 
  
 (b)    Stock Grant Agreement. Each Stock Grant awarded under the Plan shall be evidenced by a Stock
Grant Agreement between the Participant and the Company. Each Stock Grant shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions that are not inconsistent with the Plan that the
Committee deems appropriate for inclusion in the applicable Stock Grant Agreement (including without limitation any performance conditions). The provisions of the Stock Grant Agreements entered into under the Plan need not be identical. 

 
 (c)    Payment for Stock Grants. Stock Grants may be
issued with or without cash consideration under the Plan. 
  
 (d)    Vesting Conditions. Each Stock Grant may or may not be subject to vesting. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Stock Grant Agreement. A Stock Grant
Agreement may provide for accelerated vesting in the event of the Participant’s death, Disability or Retirement or other events. 
  
 (e)    Assignment or Transfer of Stock Grants. Except as provided in Section 14, or in a Stock Grant Agreement, or as required by
applicable law, a Stock Grant awarded under the Plan shall not be anticipated, assigned, attached, garnished, optioned, transferred or made subject to any creditor’s process, whether voluntarily, involuntarily or by operation of law. Any act in
violation of this Section 9(e) shall be void. However, this Section 9(e) shall not preclude a Participant from designating a beneficiary who will receive any vested outstanding Stock Grant Awards in the event of the Participant’s death, nor
shall it preclude a transfer of vested Stock Grant Awards by will or by the laws of descent and distribution. 
  
 (f)    Voting and Dividend Rights. The holder of a Stock Grant awarded under the Plan shall have the same voting, dividend and other
rights as the Company’s other shareholders. A Stock Grant Agreement, however, may require that the holder of such Stock Grant invest any cash dividends received in additional Shares subject to the Stock Grant. Such additional Shares subject to
the Stock Grant shall be subject to the same conditions and restrictions as the Stock Grant with respect to which the dividends were paid. Such additional Shares subject to the Stock Grant shall not reduce the number of Shares available for issuance
under Section 5. 
  
 (g)    Modification
or Assumption of Stock Grants. Within the limitations of the Plan, the Committee may modify or assume outstanding Stock Grants or may accept the cancellation of outstanding Stock Grants (including stock granted by another issuer) in return for the
grant of new Stock Grants for the same or a different number of Shares. No modification of a Stock Grant shall, without the consent of the Participant, alter or impair his or her rights or obligations under such Stock Grant. 
  

 11 

 SECTION 10.    TERMS AND CONDITIONS OF STOCK UNITS. 
  
 (a)    Stock Unit Agreement. Each grant of Stock Units
under the Plan shall be evidenced by a Stock Unit Agreement between the Participant and the Company. Such Stock Units shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan
(including without limitation any performance conditions). The provisions of the various Stock Unit Agreements entered into under the Plan need not be identical. Stock Units may be granted in consideration of a reduction in the Participant’s
other compensation. 
  
 (b)    Number of
Shares. Each Stock Unit Agreement shall specify the number of Shares to which the Stock Unit Grant pertains and is subject to adjustment of such number in accordance with Section 11. 
  
 (c)    Payment for Awards. To the extent that an Award is granted in the form of Stock Units, no cash
consideration shall be required of the Award recipients. 
  
 (d)    Vesting Conditions. Each Award of Stock Units may or may not be subject to vesting. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Stock Unit Agreement. A
Stock Unit Agreement may provide for accelerated vesting in the event of the Participant’s death, Disability or Retirement or other events. 
  
 (e)    Voting and Dividend Rights. The holders of Stock Units shall have no voting rights. Prior to settlement or forfeiture, any
Stock Unit awarded under the Plan may, at the Committee’s discretion, carry with it a right to dividend equivalents. Such right entitles the holder to be credited with an amount equal to all cash dividends paid on one Share while the Stock Unit
is outstanding. Dividend equivalents may be converted into additional Stock Units. Settlement of dividend equivalents may be made in the form of cash, in the form of Shares, or in a combination of both. Prior to distribution, any dividend
equivalents which are not paid shall be subject to the same conditions and restrictions as the Stock Units to which they attach. 
  
 (f)    Form and Time of Settlement of Stock Units. Settlement of vested Stock Units may be made in the form of (a) cash, (b) Shares or
(c) any combination of both, as determined by the Committee. The actual number of Stock Units eligible for settlement may be larger or smaller than the number included in the original Award. Methods of converting Stock Units into cash may include
(without limitation) a method based on the average Fair Market Value of Shares over a series of trading days. Vested Stock Units shall be settled in a lump sum as soon as reasonably practicable after vesting. The distribution may occur or commence
when all vesting conditions applicable to the Stock Units have been satisfied or have lapsed, or it may be deferred, in accordance with applicable law, to any later date. The amount of a deferred distribution may be increased by an interest factor
or by dividend equivalents. Until an Award of Stock Units is settled, the number of such Stock Units shall be subject to adjustment pursuant to Section 11. 
  
 (g)    Creditors’ Rights. A holder of Stock Units shall have no rights other than those of a general creditor of the Company.
Stock Units represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Stock Unit Agreement. 
  
 (h)    Modification or Assumption of Stock Units. Within the limitations of the Plan, the Committee may modify or assume outstanding
Stock Units or may accept the cancellation of outstanding Stock Units (including stock units granted by another issuer) in return for the grant of new Stock Units for the same or a different number of Shares. No modification of a Stock Unit shall,
without the consent of the Participant, alter or impair his or her rights or obligations under such Stock Unit. 
  
 (i)    Assignment or Transfer of Stock Units. Except as provided in Section 14, or in a Stock Unit Agreement, or as required by
applicable law, Stock Units shall not be anticipated, assigned, attached, garnished, optioned, transferred or made subject to any creditor’s process, whether voluntarily, involuntarily or by operation of law. Any act in violation of this
Section 10(i) shall be void. However, this Section 10(i) shall not preclude a Participant from designating a beneficiary who will receive any outstanding vested Stock Units in the event of the Participant’s death, nor shall it preclude a
transfer of vested Stock Units by will or by the laws of descent and distribution. 
  

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 SECTION 11.    PROTECTION AGAINST DILUTION. 
  
 (a)    Adjustments. In the event of a subdivision of the
outstanding Shares, a declaration of a dividend payable in Shares, a declaration of a dividend payable in a form other than Shares in an amount that has a material effect on the price of Shares, a combination or consolidation of the outstanding
Shares (by reclassification or otherwise) into a lesser number of Shares, a recapitalization, a spin-off or a similar occurrence, the Committee shall make such adjustments as it, in its sole discretion, deems appropriate in one or more of:

  

	 	(i)	 	the number of Shares available for future Awards under Section 5; 

  

	 	(ii)	 	the limits on Awards specified in Section 5; 

  

	 	(iii)	 	the number of Shares covered by each outstanding Award; or 

  

	 	(iv)	 	the Exercise Price under each outstanding SAR or Option. 

  
 (b)    Participant Rights. Except as provided in this Section 11, a Participant shall have no rights by reason of any issue by the
Company of stock of any class or securities convertible into stock of any class, any subdivision or consolidation of shares of stock of any class, the payment of any stock dividend or any other increase or decrease in the number of shares of stock
of any class. If by reason of an adjustment pursuant to this Section 11 a Participant’s Award covers additional or different shares of stock or securities, then such additional or different shares and the Award in respect thereof shall be
subject to all of the terms, conditions and restrictions which were applicable to the Award and the Shares subject to the Award prior to such adjustment. 
  
 (c)    Fractional Shares. Any adjustment of Shares pursuant to this Section 11 shall be rounded down to the nearest whole number of
Shares. Under no circumstances shall the Company be required to authorize or issue fractional shares and no consideration shall be provided as a result of any fractional shares not being issued or authorized. 
  
 SECTION 12.     EFFECT OF A CHANGE IN CONTROL.

  
 (a)    Merger or Reorganization. In
the event that the Company is a party to a merger or other reorganization, outstanding Awards shall be subject to the agreement of merger or reorganization. Such agreement may provide, without limitation, for the assumption of outstanding Awards by
the surviving corporation or its parent, for their continuation by the Company (if the Company is a surviving corporation), for accelerated vesting or for their cancellation effective upon the merger or other reorganization, with or without
consideration, in all cases without the consent of the Participant. 
  
 (b)    Acceleration. The Committee may determine, at the time of granting an Award or thereafter, that such Award shall become fully vested as to all Shares subject to such Award in the event that a Change in Control
occurs with respect to the Company. In the event that a Change in Control occurs with respect to the Company and there is no assumption or continuation of outstanding Options, SARs or Stock Units pursuant to Section 12(a), all such outstanding
Options, SARs and Stock Units shall fully vest and be fully exercisable immediately prior to such Change in Control. 
  
 SECTION 13.    LIMITATIONS ON RIGHTS. 
  
 (a)    Retention Rights. Neither the Plan nor any Award granted under the Plan shall be deemed to give any individual a right to
remain an employee, consultant or director of the Company, a Parent, a Subsidiary or an Affiliate. The Company and its Parents and Subsidiaries and Affiliates reserve the right to terminate the Service of any person at any time, and for any reason,
subject to applicable laws, the Company’s Articles of Incorporation and Bylaws and a written employment agreement (if any). 
  
 (b)    Shareholders’ Rights. A Participant shall have no dividend rights, voting rights or other rights as a shareholder with
respect to any Shares covered by his or her Award prior to the issuance of such Shares. No adjustment shall be made for cash dividends or other rights for which the record date is prior to the date when such Shares are issued, except as expressly
provided in Section 11. 
  

 13 

 (c)    Regulatory Requirements. Any other provision of the Plan notwithstanding, the
obligation of the Company to issue Shares or other securities under the Plan shall be subject to all applicable laws, rules and regulations and such approval by any regulatory body as may be required. The Company reserves the right to restrict, in
whole or in part, the delivery of Shares or other securities pursuant to any Award prior to the satisfaction of all legal requirements relating to the issuance of such Shares or other securities, to their registration, qualification or listing or to
an exemption from registration, qualification or listing. 
  
 (d)    Dissolution. To the extent not previously exercised or settled, Options, SARs and Stock Units shall terminate immediately prior to the dissolution or liquidation of the Company. 
  
 SECTION 14.    WITHHOLDING TAXES. 
  
 (a)    General. A Participant shall make arrangements
satisfactory to the Company for the satisfaction of any withholding tax obligations that arise in connection with his or her Award. The Company shall not be required to issue any Shares or make any cash payment under the Plan until such obligations
are satisfied. 
  
 (b)    Share Withholding.
If a public market for the Company’s Shares exists, the Committee may permit a Participant to satisfy all or part of his or her withholding or income tax obligations by having the Company withhold all or a portion of any Shares that otherwise
would be issued to him or her or by surrendering all or a portion of any Shares that he or she previously acquired. Such Shares shall be valued based on the value of the actual trade or, if there is none, the Fair Market Value as of the previous
day. Any payment of taxes by assigning Shares to the Company may be subject to restrictions, including, but not limited to, any restrictions required by rules of the Securities and Exchange Commission. The Committee may, in its discretion, also
permit a Participant to satisfy withholding or income tax obligations related to an Award through Cashless Exercise or through a sale of Shares underlying the Award. 
  
 SECTION 15.    DURATION AND AMENDMENTS. 
  
 (a)    Term of the Plan. The Plan, as set forth herein,
is effective on the Restatement Date provided, however, that the Plan is subject to the approval of the Company’s shareholders within one year of the Restatement Date. The Plan shall terminate on the tenth anniversary of the Restatement Date
and may be terminated on any earlier date pursuant to this Section 15. The Prior Plan shall remain in effect until the Company’s shareholders approve the Plan. If the Company’s shareholders do not approve the Plan within one year of the
Restatement Date, then the Plan shall terminate as of the first anniversary of the Restatement Date and any Awards granted under the Plan shall also immediately terminate without consideration to any Award holder and the Prior Plan shall continue to
remain in effect in accordance with its terms. This Plan will not in any way affect outstanding awards that were issued under the Prior Plan or the Prior Equity Plans. 
  
 (b)    Right to Amend or Terminate the Plan. The Board may amend or terminate the Plan at any time and
for any reason. The termination of the Plan, or any amendment thereof, shall not affect any Award previously granted under the Plan except as provided in Section 15(a). No Awards shall be granted under the Plan after the Plan’s termination. An
amendment of the Plan shall be subject to the approval of the Company’s shareholders only to the extent required by applicable laws, regulations or rules. 
  

SECTION 16.    EXECUTION. 
  
 To record the adoption of the Plan by the Board, the Company has caused its duly authorized officer to execute this Plan on
behalf of the Company. 
  

			
	ICOS CORPORATION
		
	 By
	 	 /s/ Paul N. Clark

		
	 Title
	 	 Chairman, President and CEO

  

 14

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