Document:

Exhibit 10.1

 

ELANCO ANIMAL HEALTH
INCORPORATED

AMENDED AND RESTATED 

EMPLOYEE STOCK PURCHASE
PLAN

 

ARTICLE I.

PURPOSE, SCOPE AND
ADMINISTRATION OF THE PLAN

 

The
purpose of the Elanco Animal Health Incorporated Employee Stock Purchase Plan, as it may be amended from time to time (the “Plan”),
is to assist employees of Elanco Animal Health Incorporated, an Indiana corporation, and any successor corporation thereto (the “Company”),
and its Designated Subsidiaries in acquiring a stock ownership interest in the Company pursuant to a plan that is intended to qualify
as an “employee stock purchase plan” under Code Section 423, and to help such employees provide for their future security
and encourage them to remain in the employment of the Company and its Subsidiaries.

 

ARTICLE II.

DEFINITIONS

 

Whenever
the following terms are used in the Plan, they shall have the meaning specified below unless the context clearly indicates to the contrary.
The singular pronoun shall include the plural where the context so indicates.

 

2.1          “Agent”
means the brokerage firm, bank or other financial institution, entity or person(s), if any, engaged, retained, appointed or authorized
to act as the agent of the Company or an Employee with regard to the Plan.

 

2.2          “Administrator”
means the Committee, or such individuals to whom authority to administer the Plan has been delegated under Section 7.1.

 

2.3          “Board”
means the Board of Directors of the Company.

 

2.4          “Code”
means the Internal Revenue Code of 1986, as amended.

 

2.5          “Committee”
means the committee of the Board (or any successor committee) appointed or designated to administer the Plan.

 

2.6          “Common
Stock” means the common stock of the Company, no par value.

 

2.7          “Company”
has the meaning set forth in Article I.

 

2.8          “Designated
Subsidiary” means each Subsidiary that has been designated by the Board or Committee from time to time in its sole discretion
as eligible to participate in the Plan. As of the Effective Date, Designated Subsidiaries include the U.S. Subsidiaries of the Company
that employ Employees. After the Effective Date, Designated Subsidiaries also shall include any new U.S. Subsidiary that is established
or acquired and employs Employees.

 

     

     

    

 

2.9          “Effective
Date” means February 22, 2022, the date the Plan was approved by the Board.

 

2.10        “Eligible
Employee” means an Employee who, after the grant of an Option, would not be deemed for purposes of Code Section 423(b)(3) to
possess five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or any Subsidiary.
The rules of Code Section 424(d) with regard to the attribution of stock ownership shall apply in determining the stock
ownership of an individual, and stock that an Employee may purchase under outstanding options shall be treated as stock owned by the Employee.
An Eligible Employee shall not include an Employee whose customary employment is fewer than twenty (20) hours per week, an Employee whose
customary employment is as a student or intern or for not more than five months in a calendar year, or an Employee whose wages and benefits
are determined by collective bargaining that does not provide for Plan participation.

 

Notwithstanding
the foregoing, the Administrator may exclude from participation in the Plan as an Eligible Employee (x) any Employee who is a “highly
compensated employee” of the Company or any Designated Subsidiary (within the meaning of Code Section 414(q)), or a “highly
compensated employee” (A) with compensation above a specified level, (B) who is an officer and/or (C) who is
subject to the disclosure requirements of Section 16(a) of the Exchange Act; and/or (y) any Employee who is a citizen or
resident of a foreign jurisdiction (without regard to whether such Employee also is a citizen of the United States or a resident alien
(within the meaning of Code Section 7701(b)(1)(A))) if either (A) the grant of the Option is prohibited under the laws of the
jurisdiction governing such Employee, or (B) compliance with the laws of the foreign jurisdiction would cause the Plan or the Option
to violate the requirements of Code Section 423; and/or (z) any Employee who has been employed by the Company or a Designated
Subsidiary for less than a period specified by the Administrator (such period not to exceed two years); provided that
any exclusion in clause (x), (y) and/or (z) shall be applied in an identical manner for each Offering Period commencing after
the date of the Administrator’s action to all Employees of the Company and all Designated Subsidiaries, in accordance with Treasury
Regulation Section 1.423-2(e).

 

2.11        “Employee”
means any person who renders services to the Company or a Designated Subsidiary in the status of an employee within the meaning of Code
Section 3401(c) and is treated as an employee in the personnel records of the Company or a Designated Subsidiary. The term “Employee”
shall not include any director of the Company or a Designated Subsidiary who does not render services to the Company or a Designated Subsidiary
in the status of an employee within the meaning of Code Section 3401(c). For purposes of the Plan, the employment relationship shall
be treated as continuing intact while the individual is on military leave, sick leave or other leave of absence approved by the Company
or Designated Subsidiary and meeting the requirements of Treasury Regulation Section 1.421-1(h)(2). Where the period of leave exceeds
three (3) months, or such other period specified in Treasury Regulation Section 1.421-1(h)(2), and the individual’s right
to reemployment is not guaranteed either by statute or by contract, the employment relationship shall be deemed to have terminated on
the first day immediately following such three (3)-month period, or such other period specified in Treasury Regulation Section 1.421-1(h)(2).

 

2.12        “Enrollment
Date” means the first date of each Offering Period.

 

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2.13        “Enrollment
Period” means the time period established by the Administrator leading up to an Enrollment Date during which Eligible Employees
may elect to participate in an Offering Period.

 

2.14        “Exercise
Date” means the last Trading Day of each Offering Period, except as provided in Section 5.2.

 

2.15        “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

2.16        “Fair
Market Value” means, as of any date, the value of Common Stock determined as follows:

 

(a)          If
the Common Stock is (i) listed on any established securities exchange (such as the New York Stock Exchange, the NASDAQ Global Market
and the NASDAQ Global Select Market), (ii) listed on any national market system, or (iii) listed, quoted or traded on any automated
quotation system, its Fair Market Value shall be:

 

(A)         if
the Common Stock is purchased on the open market, the price paid for such Common Stock; or

 

(B)          if
the Common Stock is not purchased on the open market, the closing sale price for a share of Common Stock as quoted on such exchange or
system for such date or, if there is no closing sale price for a share of Common Stock on the date in question, the closing sale price
for a share of Stock on the last preceding date for which such quotation exists, as reported in The Wall Street Journal or
such other source as the Administrator deems reliable for such purposes;

 

(b)          If
the Common Stock is not listed on an established securities exchange, national market system or automated quotation system, but the Common
Stock is regularly quoted by a recognized securities dealer, its Fair Market Value shall be the mean of the high bid and low asked prices
for such date or, if there are no high bid and low asked prices for a share of Common Stock on such date, the high bid and low asked prices
for a share of Common Stock on the last preceding date for which such information exists, as reported in The Wall Street Journal or
such other source as the Administrator deems reliable for such purposes; or

 

(c)          If
the Common Stock is neither listed on an established securities exchange, national market system or automated quotation system nor regularly
quoted by a recognized securities dealer, its Fair Market Value shall be determined by the Company in accordance with uniform and nondiscriminatory
standards adopted by it from time to time.

 

2.17          “Grant
Date” means the first Trading Day of an Offering Period.

 

2.18          “New
Exercise Date” has such meaning as set forth in Section 5.2(b).

 

2.19          “Offering
Period” means the three (3)-month period as determined by the Board or the Committee; provided, however, that the duration
and timing of Offering Periods may be changed by the Board or Committee, in its sole discretion. In no event may an Offering Period exceed
twenty-seven (27) months.

 

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2.20          “Option”
means the right to purchase shares of Common Stock pursuant to the Plan during each Offering Period.

 

2.21          “Option
Price” means the purchase price of a share of Common Stock hereunder as provided in Section 4.2.

 

2.22          “Parent”
means any entity that is a parent corporation of the Company within the meaning of Code Section 424 and the Treasury Regulations
thereunder.

 

2.23          “Participant”
means any Eligible Employee who elects to participate in the Plan.

 

2.24          “Payday”
means the regular and recurring established day for payment of compensation to an Employee of the Company or any Designated Subsidiary.

 

2.25          “Plan”
has the meaning set forth in Article I.

 

2.26          “Plan
Account” means a bookkeeping account established and maintained by the Company in the name of each Participant.

 

2.27          “Section 423
Option” has the meaning set forth in Section 3.1(b).

 

2.28          “Subsidiary”
means any domestic corporation that is a subsidiary of the Company within the meaning of Code Section 424 and the Treasury Regulations
thereunder.

 

2.29          “Trading
Day” means a day on which the principal securities exchange on which the Common Stock is listed is open for trading or, if the
Common Stock is not listed on a securities exchange, a business day, as determined by the Administrator in good faith.

 

2.30          “Withdrawal
Election” has the meaning set forth in Section 6.1(a).

 

ARTICLE III.

PARTICIPATION

 

3.1            Eligibility.

 

(a)          Any
Eligible Employee who is employed before the first day of the month containing an Enrollment Period, elects during such Enrollment Period
to participate in the Plan for an Offering Period, and is employed by the Company or a Designated Subsidiary on the Enrollment Date for
the Offering Period shall be eligible to participate in the Plan during such Offering Period, subject to the requirements of Articles
IV and V and the limitations imposed by Code Section 423(b) and the Treasury Regulations thereunder.

 

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(b)          No
Eligible Employee shall be granted an Option under the Plan that permits the Participant’s rights to purchase shares of Common
Stock under the Plan, and to purchase stock under all other employee stock purchase plans of the Company, any Parent or any Subsidiary
subject to Code Section 423 (any such Option or other option, a “Section 423 Option”), to accrue at a rate
that exceeds $25,000 of fair market value of such stock (determined at the time the Section 423 Option is granted) for each calendar
year in which any Section 423 Option granted to the Participant is outstanding at any time. The limitation under this Section 3.1(b) shall
be applied in accordance with Code Section 423(b)(8) and the Treasury Regulations thereunder. No Eligible Employee may purchase
in any calendar year shares of Common Stock having an aggregate Fair Market Value in excess of $25,000 (determined at the time the Section 423
Option is granted). Notwithstanding any other provision of the Plan, unless otherwise determined by the Committee prior to an Offering
Period, the maximum number of shares of Common Stock that may be purchased by each participating employee during any one Offering Period
shall be 2,000 shares of Common Stock.

 

3.2          Election
to Participate; Payroll Deductions

 

(a)          Except
as provided in Section 3.3, an Eligible Employee may become a Participant in the Plan only by means of payroll deduction. Each individual
who is an Eligible Employee and satisfies the requirements set forth in Section 3.1(a) may elect to participate in such Offering
Period and the Plan by delivering to the Company or its designee a payroll deduction authorization no later than the Enrollment Period
deadline determined by the Administrator in its sole discretion.

 

(b)          Subject
to Section 3.1(b), and unless alternative contribution limits are set by the Administrator prior to any Offering Period, payroll
deductions for each Offering Period shall not exceed ten percent (10%) of the Participant’s base compensation during the Offering
Period. In addition, the Administrator may establish for any calendar year a contribution limit per Participant that is less than the
annual dollar limit set forth in Section 3.1(b) hereof. Amounts deducted from a Participant’s base compensation with respect
to an Offering Period pursuant to this Section 3.2 shall be deducted each Payday through payroll deduction and credited to the Participant’s
Plan Account.

 

(c)          Following
at least one (1) payroll deduction during an Offering Period, a Participant may cancel the Participant’s payroll deduction
for such Offering Period upon at least ten (10) calendar days’ prior written notice to the Administrator or its designee. The
change will be reflected in payroll deductions as soon as administratively practicable after the notice is received.

 

(d)          Notwithstanding
the foregoing, upon the termination of an Offering Period, each Participant in such Offering Period shall automatically participate in
the immediately following Offering Period at the same payroll deduction percentage as in effect at the termination of the prior Offering
Period, unless such Participant delivers to the Company a different election with respect to the successive Offering Period in accordance
with Section 3.1(a), or unless such Participant becomes ineligible to participate in the Plan.

 

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3.3          Leave
of Absence. Payroll deductions for shares that a Participant has an option to purchase may be suspended during any leave of absence
approved by the Company meeting the requirements of Treasury Regulation Section 1.421-1(h)(2), or, if the Participant so elects,
periodic payments for such shares may continue to be made in cash. If such Participant returns to active service prior to the last day
of the Offering Period, the Participant’s payroll deductions will be resumed and, if the Participant did not make periodic cash
payments during the Participant’s period of absence, the Participant shall, by written notice to the Administrator within ten (10) days
after the Participant’s return to active service, but not later than the last day of the Offering Period, elect: (a) to make
up any deficiency in the Participant’s Plan Account resulting from a suspension of payroll deductions by making an immediate cash
payment or through increased payroll deductions; (b) not to make up such deficiency, in which event the number of shares to be purchased
by the Participant shall be reduced to the number of whole shares which may be purchased with the amount, if any, then credited to the
Participant’s Plan Account plus the aggregate amount, if any, of all payroll deductions to be made thereafter; or (c) withdraw
the amount in the Participant’s Plan Account and terminate the Participant’s option to purchase. If any Participant fails
to deliver the written notice described above within ten (10) days after the Participant’s return to active service or by
the last day of the Offering Period, whichever is earlier, the Participant shall be deemed to have elected the approach described in
clause (b) of this Section 3.3.

 

ARTICLE IV.

PURCHASE OF SHARES

 

4.1          Grant
of Option. Each Participant shall be granted an Option with respect to an Offering Period on the applicable Grant Date. Subject to
the limitations described in Section 3.1(b), the number of shares of Common Stock subject to a Participant’s Option shall be
determined by dividing (a) such Participant’s payroll deductions accumulated prior to such Exercise Date and retained in the
Participant’s Plan Account on such Exercise Date by (b) the applicable Option Price; provided, however, that the maximum
number of shares of Common Stock that may be purchased by a Participant in an Offering Period shall be determined by dividing such Participant’s
Plan Account balance on such Exercise Date by eighty-five percent (85%) of the Fair Market Value of a share of Common Stock on the Grant
Date. The Administrator may, for future Offering Periods, increase or decrease, in its absolute discretion, the maximum number of shares
of Common Stock that a Participant may purchase during such future Offering Periods. Each Option shall expire on the Exercise Date for
the applicable Offering Period immediately after the automatic exercise of the Option in accordance with Section 4.3, unless such
Option terminates earlier in accordance with Article 6.

 

4.2          Option
Price. The “Option Price” per share of Common Stock to be paid by a Participant upon exercise of the Participant’s
Option on the Exercise Date for an Offering Period shall equal eight-five percent (85%) (or such greater percentage as may be determined
by the Committee prior to the commencement of any Offering Period) of the Fair Market Value of a share of Common Stock on the applicable
Exercise Date.

 

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4.3          Purchase
of Shares.

 

(a)          Subject
to the limitation contained in Section 4.1, on the Exercise Date for an Offering Period, each Participant shall automatically and
without any action on such Participant’s part be deemed to have exercised his or her Option to purchase at the applicable per share
Option Price the largest number of whole shares of Common Stock that can be purchased with the amount in the Participant’s Plan
Account. No fractional shares shall be issued upon the exercise of rights granted under this Plan. Any balance that is remaining in the
Participant’s Plan Account (after exercise of such Participant’s Option) as of the Exercise Date shall be returned to the
Participant in one cash lump sum payment within thirty (30) days after such Exercise Date, without any interest thereon.

 

(b)          As
soon as practicable following the applicable Exercise Date, the number of shares of Common Stock purchased by a Participant pursuant to
Section 4.3(a) shall be delivered (in either share certificate or book entry form), in the Company’s sole discretion,
to either (i) the Participant or (ii) an account established in the Participant’s name at a stock brokerage or other financial
services firm designated by the Company. If the Company is required to obtain from any commission or agency authority to issue any such
shares of Common Stock, the Company shall seek to obtain such authority. Inability of the Company to obtain from any such commission or
agency authority which counsel for the Company deems necessary for the lawful issuance of any such shares shall relieve the Company from
liability to any Participant except to refund to the Participant such Participant’s Plan Account balance, without interest thereon.

 

4.4          Transferability
of Rights. An Option granted under the Plan shall not be transferable, other than by will or the applicable laws of descent and distribution,
and is exercisable during the Participant’s lifetime only by the Participant. No Option or interest or right to the Option shall
be available to pay off any debts, contracts or engagements of the Participant or his or her successors in interest or shall be subject
to disposition by pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation
of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempt
at disposition of the Option shall have no effect.

 

ARTICLE V.

PROVISIONS RELATING
TO COMMON STOCK

 

5.1          Common
Stock Reserved. Subject to adjustment as provided in Section 5.2, the number of shares of Common Stock that shall be permitted
to be purchased under the Plan shall be six hundred twenty-five thousand (625,000) shares of Common Stock. The
shares of Common Stock may
be treasury shares, shares acquired on the open market, reacquired shares reserved for issuance under the Plan, or authorized but unissued
shares.

 

5.2          Adjustments
Upon Changes in Capitalization, Dissolution, Liquidation, Merger or Asset Sale.

 

(a)          Changes
in Capitalization. Subject to any required action by the shareholders of the Company, the number of shares of Common Stock that have
been authorized for issuance under the Plan but not yet placed under Option, as well as the price per share and the number of shares
of Common Stock covered by each Option under the Plan that has not yet been exercised, shall be proportionately adjusted for any increase
or decrease in the number of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination
or reclassification of the Common Stock, or any other increase or decrease in the number of shares of Common Stock effected without receipt
of consideration by the Company. Such adjustment shall be made by the Administrator, whose determination in that respect shall be final,
binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number
or price of shares of Common Stock subject to an Option.

 

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(b)          Dissolution
or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Offering Period then in progress shall
be shortened by setting a new Exercise Date (the “New Exercise Date”), and shall terminate immediately prior to the
consummation of such proposed dissolution or liquidation, unless provided otherwise by the Administrator. The New Exercise Date shall
be before the date of the Company’s proposed dissolution or liquidation. The Administrator shall notify each Participant in writing,
at least ten (10) business days prior to the New Exercise Date, that the Exercise Date for the Participant’s Option has
been changed to the New Exercise Date and that the Participant’s Option shall be exercised automatically on the New Exercise Date,
unless prior to such date the Participant has withdrawn from the Offering Period as provided in Section 6.1.

 

(c)          Merger
or Asset Sale. In the event of a proposed sale of all or substantially all of the assets of the Company, or the merger of the Company
with or into another corporation, each outstanding Option shall be assumed or an equivalent Option substituted by the successor corporation
or a parent or subsidiary of the successor corporation. In the event that the successor corporation refuses to assume or substitute for
the Option, any Offering Periods then in progress shall be shortened by setting a New Exercise Date and any Offering Periods then in progress
shall end on the New Exercise Date. The New Exercise Date shall be before the date of the Company’s proposed sale or merger. The
Administrator shall notify each Participant in writing, at least ten (10) business days prior to the New Exercise Date, that the
Exercise Date for the Participant’s Option has been changed to the New Exercise Date and that the Participant’s Option shall
be exercised automatically on the New Exercise Date, unless prior to such date the Participant has withdrawn from the Offering Period
as provided in Section 6.1 hereof.

 

5.3          Insufficient
Shares. If the Administrator determines that, on a given Exercise Date, the number of shares of Common Stock with respect to which
Options are to be exercised may exceed the number of shares of Common Stock remaining available under the Plan on such Exercise Date,
the Administrator shall make a pro rata allocation of the shares of Common Stock available for issuance on such Exercise Date in as uniform
a manner as shall be practicable and as it shall determine in its sole discretion to be equitable among all Participants exercising Options
to purchase Common Stock on such Exercise Date, and unless additional shares are authorized for issuance under the Plan, no further Offering
Periods shall take place and the Plan shall terminate pursuant to Section 7.5. If an Offering Period is so terminated, then the balance
of the amount credited to the Participant’s Plan Account that has not been applied to the purchase of shares of Common Stock shall
be paid to such Participant in one cash lump sum payment within thirty (30) days after such Exercise Date, without any interest thereon.

 

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5.4          Rights
as Shareholders. With respect to shares of Common Stock subject to an Option, a Participant shall not be deemed to be a shareholder
of the Company and shall not have any of the rights or privileges of a shareholder. A Participant shall have the rights and privileges
of a shareholder of the Company when, but not until, shares of Common Stock have been deposited in the designated brokerage account following
exercise of his or her Option.

 

ARTICLE VI.

TERMINATION OF PARTICIPATION

 

6.1          Cessation
of Contributions; Voluntary Withdrawal.

 

(a)          A
Participant may cease payroll deductions during an Offering Period and elect to withdraw from the Plan by delivering written notice of
such election to the Administrator or its designee in such form and at such time prior to the Exercise Date for such Offering Period as
may be established by the Administrator (a “Withdrawal Election”). A Participant electing to withdraw from the Plan
may elect to withdraw all of the funds then credited to the Participant’s Plan Account as of the date on which the Withdrawal Election
is received by the Administrator or its designee, in which case amounts credited to such Plan Account shall be returned to the Participant
in one cash lump sum payment within thirty (30) days after such election is received by the Administrator or its designee, without
any interest thereon, and the Participant shall cease to participate in the Plan and the Participant’s Option for such Offering
Period shall terminate. Upon receipt of a Withdrawal Election, the Participant’s payroll deduction authorization and his or her
Option to purchase under the Plan shall terminate.

 

(b)          A
Participant’s withdrawal from the Plan shall not affect his or her eligibility to participate in any similar plan that may be adopted
hereafter by the Company or in succeeding Offering Periods that commence after the termination of the Offering Period from which the Participant
withdraws.

 

(c)          A
Participant who ceases contributions to the Plan during any Offering Period shall not be permitted to resume contributions to the Plan
during that Offering Period.

 

6.2          Termination
of Eligibility. Upon a Participant’s ceasing to be an Eligible Employee for any reason, such Participant’s Option for
the applicable Offering Period shall automatically terminate, he or she shall be deemed to have elected to withdraw from the Plan, and
amounts credited to the Participant’s Plan Account shall be paid in cash to such Participant or, in the case of his or her death,
to the person or persons entitled thereto pursuant to applicable law, within thirty (30) days after such cessation of being an Eligible
Employee, without any interest thereon.

 

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ARTICLE VII.

GENERAL PROVISIONS

 

7.1          Administration.

 

(a)          The
Plan shall be administered by the Committee, which shall be composed of members of the Board. The Committee may delegate administrative
tasks under the Plan to the services of an Agent and/or employees to assist in the administration of the Plan, including establishing
and maintaining an individual securities account under the Plan for each Participant.

 

(b)          It
shall be the duty of the Administrator to conduct the general administration of the Plan in accordance with the provisions of the Plan.
The Administrator shall have the power, subject to, and within the limitations of, the express provisions of the Plan:

 

(i)            To
establish Offering Periods;

 

(ii)           To
determine when and how Options shall be granted and the provisions and terms of each Offering Period (which need not be identical);

 

(iii)          To
identify Designated Subsidiaries in accordance with Section 7.2; and

 

(iv)         To
construe and interpret the Plan, the terms of any Offering Period and the terms of the Options and to adopt such rules for the administration,
interpretation, and application of the Plan as are consistent therewith and to interpret, amend or revoke any such rules. The Administrator,
in the exercise of this power, may correct any defect, omission or inconsistency in the Plan, any Offering Period or any Option, in a
manner and to the extent it shall deem necessary or expedient to make the Plan fully effect, subject to Code Section 423 and the
Treasury Regulations thereunder.

 

(c)          The
Administrator may adopt rules or procedures relating to the operation and administration of the Plan to accommodate the specific
requirements of local laws and procedures. Without limiting the generality of the foregoing, the Administrator is specifically authorized
to adopt rules and procedures regarding handling of participation elections, payroll deductions, payment of interest, conversion
of local currency (if applicable), payroll tax, withholding procedures and handling of stock certificates that vary with local requirements.
In its absolute discretion, the Board or the Committee may at any time and from time to time exercise any and all rights and duties of
the Administrator under the Plan.

 

(d)          The
Administrator may adopt sub-plans applicable to particular Designated Subsidiaries or locations, which sub-plans may be designed to be
outside the scope of Code Section 423. The rules of such sub-plans may take precedence over other provisions of this Plan, with
the exception of Section 5.1, but, unless otherwise superseded by the terms of such sub-plan, the provisions of this Plan shall govern
the operation of such sub-plan.

 

(e)          All
expenses and liabilities incurred by the Administrator in connection with the administration of the Plan shall be borne by the Company.
The Administrator may, with the approval of the Committee, employ attorneys, consultants, accountants, appraisers, brokers or other persons.
The Administrator, the Company and its officers and directors shall be entitled to rely upon the advice, opinions or valuations of any
such persons. All actions taken and all interpretations and determinations made by the Administrator in good faith shall be final and
binding upon all Participants, the Company and all other interested persons. No member of the Board or Administrator shall be personally
liable for any action, determination or interpretation made in good faith with respect to the Plan or the options, and all members of
the Board or Administrator shall be fully protected by the Company in respect to any such action, determination, or interpretation.

 

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7.2          Designation
of Subsidiary Corporations. The Administrator, Board or Committee shall designate from among the Subsidiaries, as determined from
time to time, the Subsidiary or Subsidiaries that shall constitute Designated Subsidiaries. The Administrator, Board or Committee may
designate a Subsidiary, or terminate the designation of a Subsidiary, without the approval of the shareholders of the Company.

 

7.3          Reports.
Individual accounts shall be maintained for each Participant. Statements of Plan Accounts shall be given to Participants at least annually,
which statements shall set forth the amounts of payroll deductions, the Option Price, the number of shares purchased and the remaining
cash balance, if any.

 

7.4          No
Right to Employment. Nothing in the Plan shall be construed to give any person (including any Participant) the right to remain in
the employ of the Company, a Parent or a Subsidiary or to affect the right of the Company, any Parent or any Subsidiary to terminate the
employment of any person (including any Participant) at any time, with or without cause, which right is expressly reserved.

 

7.5          Amendment
and Termination of the Plan.

 

(a)          The
Board may, in its sole discretion, amend, suspend or terminate the Plan at any time and from time to time; provided, however,
that without approval of the Company’s shareholders within twelve (12) months before or after action by the Board, the Plan
may not be amended to increase the maximum number of shares of Common Stock subject to the Plan or change the designation or class of
Eligible Employees.

 

(b)          In
the event the Administrator determines that the ongoing operation of the Plan may result in unfavorable financial accounting consequences,
the Administrator may, to the extent permitted under Code Section 423, in its discretion and, to the extent necessary or desirable,
modify or amend the Plan to reduce or eliminate such accounting consequence including, but not limited to:

 

(i)           altering
the Option Price for any Offering Period, including an Offering Period underway at the time of the change in Option Price;

 

(ii)          shortening
any Offering Period so the Offering Period ends on a new Exercise Date, including an Offering Period underway at the time of the Administrator
action; and

 

(iii)          allocating
shares of Common Stock.

 

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Such modifications
or amendments shall not require shareholder approval or the consent of any Participant.

 

(c)          Upon
termination of the Plan, the balance in each Participant’s Plan Account shall be refunded as soon as practicable after such termination,
without any interest thereon.

 

7.6          Use
of Funds; No Interest Paid. All funds received by the Company by reason of purchase of Common Stock under the Plan shall be included
in the general funds of the Company free of any trust or other restriction and may be used for any corporate purpose. No interest shall
be paid to any Participant or credited under the Plan.

 

7.7          Term;
Approval by Shareholders. No Option may be granted during any period of suspension of the Plan or after termination of the Plan. The
Plan shall be submitted for the approval of the Company’s shareholders within twelve (12) months after the date of the Board’s
initial adoption of the Plan. Options may be granted prior to such shareholder approval; provided, however, that
such Options shall not be exercisable prior to the time when the Plan is approved by the shareholders; provided, further, that
if such approval has not been obtained by the end of said twelve (12)-month period, all Options previously granted under the Plan shall
terminate and be canceled and become null and void without being exercised.

 

7.8          Effect
on Other Plans. The adoption of the Plan shall not affect any other compensation or incentive plan in effect for the Company, any
Parent or any Subsidiary. Nothing in the Plan shall be construed to limit the right of the Company, any Parent or any Subsidiary (a) to
establish any other form of incentives or compensation for Employees of the Company or any Parent or any Subsidiary, or (b) to grant
or assume options otherwise than under the Plan in connection with any proper corporate purpose, including, but not by way of limitation,
the grant or assumption of options in connection with the acquisition, by purchase, lease, merger, consolidation or otherwise, of the
business, stock or assets of any corporation, firm or association.

 

7.9          Conformity
to Securities Laws. Notwithstanding any other provision of the Plan, the Plan and the participation in the Plan by any individual
who is then subject to Section 16 of the Exchange Act shall be subject to any additional limitations set forth in any applicable
exemption rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that
are requirements for the application of such exemption rule. To the extent permitted by applicable law, the Plan shall be deemed amended
to the extent necessary to conform to such applicable exemption rule.

 

7.10        Notice
of Disposition of Shares. Each Participant shall give the Administrator or its designee prompt written notice of any disposition or
other transfer of any shares of Common Stock acquired pursuant to the exercise of an Option if such disposition or transfer is made (a) within
two (2) years after the applicable Grant Date or (b) within one (1) year after the transfer of such shares of Common Stock
to such Participant upon exercise of such Option. The Company may direct that any certificates evidencing shares acquired pursuant to
the Plan refer to such requirement.

 

    12 

     

    

 

7.11          Tax
Withholding. The Company or any Parent or any Subsidiary shall be entitled to require payment in cash or deduction from other compensation
payable to each Participant of any sums required by federal, state or local tax law to be withheld with respect to any purchase of shares
of Common Stock under the Plan or any sale of such shares.

 

7.12          Governing
Law. The Plan and all rights and obligations hereunder shall be construed and enforced in accordance with the laws of the State of
Indiana.

 

7.13          Notices.
All notices or other communications by a participant to the Company or the Administrator (or its designee) under or in connection with
the Plan shall be deemed to have been duly given when received in the form specified by the Company or the Administrator (or its designee)
at the location, or by the person, designated for the delivery thereof.

 

7.14          Conditions
to Issuance of Shares.

 

(a)          Notwithstanding
anything herein to the contrary, the Company shall not be required to issue or deliver any certificates or make any book entries evidencing
shares of Common Stock pursuant to the exercise of an Option by a Participant unless and until the Board or the Committee has determined,
with advice of counsel, that the issuance of such shares of Common Stock is in compliance with all applicable laws, regulations of governmental
authorities and, if applicable, the requirements of any securities exchange or automated quotation system on which the shares of Common
Stock are listed or traded, and the shares of Common Stock are covered by an effective registration statement or applicable exemption
from registration. In addition to the terms and conditions provided herein, the Board or the Committee may require that a Participant
make such reasonable covenants, agreements, and representations as the Board or the Committee, in its discretion, deems advisable in order
to comply with any such laws, regulations, or requirements.

 

(b)          All
certificates for shares of Common Stock delivered pursuant to the Plan and all shares of Common Stock issued pursuant to book entry procedures
are subject to any stop-transfer orders and other restrictions as the Company deems necessary or advisable to comply with federal, state,
or foreign securities or other laws, rules and regulations and the rules of any securities exchange or automated quotation system
on which the shares of Common Stock are listed, quoted, or traded. The Company may place legends on any certificate or book entry evidencing
shares of Common Stock to reference restrictions applicable to the shares of Common Stock.

 

(c)          The
Administrator shall have the right to require any Participant to comply with any timing or other restrictions with respect to the settlement,
distribution or exercise of any Option, including a window-period limitation, as may be imposed in the sole discretion of the Administrator.

 

(d)          Notwithstanding
any other provision of the Plan, unless otherwise determined by the Company or required by any applicable law, rule or regulation,
the Company may, in lieu of delivering to any Participant certificates evidencing shares of Common Stock issued in connection with any
Option, record the issuance of shares of Common Stock in the books of the Company (or, as applicable, its transfer agent or stock plan
administrator).

 

    13 

     

    

 

7.15          Equal
Rights and Privileges. Except with respect to sub-plans designed to be outside the scope of Code Section 423, if any, all Eligible
Employees of the Company (or any Designated Subsidiary) shall have equal rights and privileges under the Plan to the extent required under
Code Section 423 or the regulations promulgated thereunder so this Plan qualifies as an “employee stock purchase plan”
within the meaning of Code Section 423 and the Treasury Regulations thereunder. Any provision of this Plan that is inconsistent with
Code Section 423 and the Treasury Regulations thereunder shall, without further act or amendment by the Company or the Board, be
reformed to comply with the equal rights and privileges requirement of Code Section 423 or the Treasury Regulations thereunder.

 

7.16          Account
Transfer Restriction. Unless otherwise determined by the Committee, shares of Common Stock purchased under the Plan shall not be transferable
by a Participant from the account established in the Participant’s name under the Plan until the first anniversary of the Exercise
Date upon which such shares were purchased by the Participant.

 

    14Document

Exhibit 10.1
SUPER MICRO COMPUTER, INC.  
AMENDED AND RESTATED
2020 EQUITY AND INCENTIVE COMPENSATION PLAN

1.Purpose.  The purpose of this Plan is to permit award grants to non-employee Directors, officers and other employees of the Company and its Subsidiaries, and certain consultants to the Company and its Subsidiaries, and to provide to such persons incentives and rewards for service and/or performance.

2.Definitions.  As used in this Plan:
(a)     “Appreciation Right” means a right granted pursuant to Section 5 of this Plan.

(b)     “Base Price” means the price to be used as the basis for determining the Spread upon the exercise of an Appreciation Right.

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

(d)     “Cash Incentive Award” means a cash award granted pursuant to Section 8 of this Plan.

(e)     “Change in Control” has the meaning set forth in Section 12 of this Plan.

(f)     “Code” means the Internal Revenue Code of 1986, as amended from time to time, and the regulations thereunder, as such law and regulations may be amended from time to time.

(g)    “Committee” means the Compensation Committee of the Board (or its successor(s)), or any other committee of the Board designated by the Board to administer this Plan pursuant to Section 10 of this Plan.

(h)    “Common Stock” means the common stock, par value $0.001 per share, of the Company or any security into which such common stock may be changed by reason of any transaction or event of the type referred to in Section 11 of this Plan.

(i)    “Company” means Super Micro Computer, Inc., a Delaware corporation, and its successors.

(j)    “Date of Grant” means the date provided for by the Committee on which a grant of Option Rights, Appreciation Rights, Performance Shares, Performance Units, Cash Incentive Awards, or other awards contemplated by Section 9 of this Plan, or a grant or sale of Restricted Stock, Restricted Stock Units, or other awards contemplated by Section 9 of this Plan, will become effective (which date will not be earlier than the date on which the Committee takes action with respect thereto).

(k) “Director” means a member of the Board.

(l)    “Effective Date” means June 5, 2020.

(m)    “Evidence of Award” means an agreement, certificate, resolution or other type or form of writing or other evidence approved by the Committee that sets forth the terms and conditions of the awards granted under this Plan.  An Evidence of Award may be in an electronic medium, may be limited to notation on the books and records of the Company and, unless otherwise determined by the Committee, need not be signed by a representative of the Company or a Participant. 

(n)     “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations thereunder, as such law, rules and regulations may be amended from time to time.

(o)    “Incentive Stock Option” means an Option Right that is intended to qualify as an “incentive stock option” under Section 422 of the Code or any successor provision.

(p)    “Management Objectives” means the measurable performance objective or objectives established pursuant to this Plan for Participants who have received grants of Performance Shares, Performance Units or Cash Incentive Awards or, when so determined by the Committee, Option Rights, Appreciation Rights, Restricted Stock, Restricted Stock Units, dividend equivalents or other awards pursuant to this Plan.  If the Committee determines that a change in the business, operations, corporate structure or capital structure of the Company, or the manner in which it conducts its business, or other events or circumstances render the Management Objectives unsuitable, the Committee may in its discretion modify such Management Objectives or the goals or actual levels of achievement regarding the Management Objectives, in whole or in part, as the Committee deems appropriate and equitable.

(q)    “Market Value per Share” means, as of any particular date, the closing price of a share of Common Stock as reported for that date on the Nasdaq Stock Market or, if the Common Stock is not then listed on the Nasdaq Stock Market, on any other national securities exchange on which the Common Stock is listed, or if there are no sales on such date, on the next preceding trading day during which a sale occurred. If there is no regular public trading market for the Common Stock, then the Market Value per Share shall be the fair market value as determined in good faith by the Committee. The Committee is authorized to adopt another fair market value pricing method provided such method is stated in the applicable Evidence of Award and is in compliance with the fair market value pricing rules set forth in Section 409A of the Code.

(r)     “Optionee” means the optionee named in an Evidence of Award evidencing an outstanding Option Right.

(s)    “Option Price” means the purchase price payable on exercise of an Option Right.

(t)    “Option Right” means the right to purchase Common Stock upon exercise of an award granted pursuant to Section 4 of this Plan.

(u)    “Participant” means a person who is selected by the Committee to receive benefits under this Plan and who is at the time (i) a non-employee Director, (ii) an officer or other employee of the Company or any Subsidiary, including a person who has agreed to commence serving in such capacity within 90 days of the Date of Grant, or (iii) a person, including a consultant, who provides services to the Company or any Subsidiary that are equivalent to those typically provided by an employee (provided that such person satisfies the Form S-8 definition of an “employee”).

(v)    “Performance Period” means, in respect of a Cash Incentive Award, Performance Share or Performance Unit, a period of time established pursuant to Section 8 of this Plan within which the Management Objectives relating to such Cash Incentive Award, Performance Share or Performance Unit are to be achieved.

(w)    “Performance Share” means a bookkeeping entry that records the equivalent of one share of Common Stock awarded pursuant to Section 8 of this Plan.

(x)    “Performance Unit” means a bookkeeping entry awarded pursuant to Section 8 of this Plan that records a unit equivalent to $1.00 or such other value as is determined by the Committee.

(y)    “Plan” means this Super Micro Computer, Inc. 2020 Equity and Incentive Compensation Plan, as may be amended or amended and restated from time to time.  This Plan was last amended and restated effective May 18, 2022.

(z)    “Predecessor Plans” means the Super Micro Computer, Inc. 2006 Equity Incentive Plan, as amended or amended and restated from time to time, and the Super Micro Computer, Inc. 2016 Equity Incentive Plan, as amended or amended and restated from time to time.

(aa)    “Restricted Stock” means Common Stock granted or sold pursuant to Section 6 of this Plan as to which neither the substantial risk of forfeiture nor the prohibition on transfers has expired.

(bb)    “Restricted Stock Units” means an award made pursuant to Section 7 of this Plan of the right to receive Common Stock, cash or a combination thereof at the end of the applicable Restriction Period.

(cc)    “Restriction Period” means the period of time during which Restricted Stock Units are subject to restrictions, as provided in Section 7 of this Plan.

(dd)    “Spread” means the excess of the Market Value per Share on the date when an Appreciation Right is exercised over the Base Price provided for with respect to the Appreciation Right.

(ee)    “Stockholder” means an individual or entity that owns one or more shares of Common Stock.

(ff)    “Subsidiary” means a corporation, company or other entity (i) more than 50% of whose outstanding shares or securities (representing the right to vote for the election of directors or other managing authority) are, or (ii) which does not have outstanding shares or securities (as may be the case in a partnership, joint venture, limited liability company, unincorporated association or other similar entity), but more than 50% of whose ownership interest representing the right generally to make decisions for such other entity is, now or hereafter, owned or controlled, directly or indirectly, by the Company; provided, however, that for purposes of determining whether any person may be a Participant for purposes of any grant of Incentive Stock Options, “Subsidiary” means any corporation in which the Company at the time owns or controls, directly or indirectly, more than 50% of the total combined Voting Power represented by all classes of stock issued by such corporation.

(gg)    “Voting Power” means, at any time, the combined voting power of the then-outstanding securities entitled to vote generally in the election of Directors in the case of the Company or members of the board of directors or similar body in the case of another entity.

3.Shares Available Under this Plan.

(a)     Maximum Shares Available Under this Plan.

(i)    Subject to adjustment as provided in Section 11 of this Plan and the share counting rules set forth in Section 3(b) of this Plan, the number of shares of Common Stock available under this Plan for awards of (A) Option Rights or Appreciation Rights, (B) Restricted Stock, (C) Restricted Stock Units, (D) Performance Shares or Performance Units, (E) awards contemplated by Section 9 of this Plan, or (F) dividend equivalents paid with respect to awards made under this Plan will not exceed in the aggregate (x) 7,000,000 shares of Common Stock (consisting of 5,000,000 shares of Common Stock that were approved by the Stockholders in 2020 and 2,000,000 shares of Common Stock to be approved by the Stockholders in 2022), plus (y) the total number of shares remaining available for awards under the Super Micro Computer, Inc. 2016 Equity Incentive Plan, as amended or amended and restated from time to time, as of the Effective Date (zero), plus (z) the Common Stock that is subject to awards granted under this Plan or the Predecessor Plans that is added (or added back, as applicable) to the aggregate number of shares of Common Stock available under this Section 3(a)(i) pursuant to the share counting rules of this Plan. Such shares may be shares of original issuance or treasury shares or a combination of the foregoing.

(ii)     Subject to the share counting rules set forth in Section 3(b) of this Plan, the aggregate number of shares of Common Stock available under Section 3(a)(i) of this Plan will be reduced by one share of Common Stock for every one share of Common Stock subject to an award granted under this Plan.

(b)     Share Counting Rules.

(i)    Except as provided in Section 22 of this Plan, if any award granted under this Plan (in whole or in part) is cancelled or forfeited, expires, is settled for cash, or is unearned, the Common Stock subject to such award will, to the extent of such cancellation, forfeiture, expiration, cash settlement, or unearned amount, again be available under Section 3(a)(i) above.

(ii)    If, after the Effective Date, any Common Stock subject to an award granted under the Predecessor Plans is forfeited, or an award granted under the Predecessor Plans (in whole or in part) is cancelled or forfeited, expires, is settled for cash, or is unearned, the Common Stock subject to such award will, to the extent of such cancellation, forfeiture, expiration, cash settlement, or unearned amount, be available for awards under this Plan.

(iii)    Notwithstanding anything to the contrary contained in this Plan:  (A) Common Stock withheld by the Company, tendered or otherwise used in payment of the Option Price of an Option Right will not be added (or added back, as applicable) to the aggregate number of shares of Common Stock available under Section 3(a)(i) of this Plan; (B) Common Stock withheld by the Company, tendered or otherwise used to satisfy tax withholding will not be added (or added back, as applicable) to the aggregate number of shares of Common Stock available under Section 3(a)(i) of this Plan; (C) Common Stock subject to a share-settled Appreciation Right that is not actually issued in connection with the settlement of such Appreciation Right on the exercise thereof will not be added (or added back, as applicable) to the aggregate number of shares of Common Stock available under Section 3(a)(i) of this Plan; and (D) Common Stock reacquired by the Company on the open market or otherwise using cash proceeds from the exercise of Option Rights will not be added (or added back, as applicable) to the aggregate number of shares of Common Stock available under Section 3(a)(i) of this Plan.

(iv)    If, under this Plan, a Participant has elected to give up the right to receive compensation in exchange for Common Stock based on fair market value, such Common Stock will not count against the aggregate limit under Section 3(a)(i) of this Plan.

(c)    Limit on Incentive Stock Options. 
 
Notwithstanding anything to the contrary contained in this Plan, and subject to adjustment as provided in Section 11 of this Plan, the aggregate number of shares of Common Stock actually issued or transferred by the Company upon the exercise of Incentive Stock Options will not exceed 7,000,000 shares of Common Stock.

(d)     Non-Employee Director Compensation Limit.  

Notwithstanding anything to the contrary contained in this Plan, in no event will any non-employee Director in any one calendar year be granted compensation for such service having an aggregate maximum value (measured at the Date of Grant as applicable, and calculating the value of any awards based on the grant date fair value for financial reporting purposes) in excess of $700,000.

4. Option Rights.  The Committee may, from time to time and upon such terms and conditions as it may determine, authorize the granting to Participants of Option Rights. Each such grant may utilize any or all of the authorizations, and will be subject to all of the requirements, contained in the following provisions:

(a)    Each grant will specify the number of shares of Common Stock to which it pertains subject to the limitations set forth in Section 3 of this Plan.

(b)     Each grant will specify an Option Price per share of Common Stock, which Option Price (except with respect to awards under Section 22 of this Plan) may not be less than the Market Value per Share on the Date of Grant.

(c)    Each grant will specify whether the Option Price will be payable (i) in cash, by check acceptable to the Company or by wire transfer of immediately available funds, (ii) by the actual or constructive transfer to the Company of Common Stock owned by the Optionee having a value at the time of exercise equal to the total Option Price, (iii) subject to any conditions or limitations established by the Committee, by the withholding of Common Stock otherwise issuable upon exercise of an Option Right pursuant to a “net exercise” arrangement (it being understood that, solely for purposes of determining the number of treasury shares held by the Company, the Common Stock so withheld will not be treated as issued and acquired by the Company upon such exercise), (iv) by a combination of such methods of payment, or (v) by such other methods as may be approved by the Committee.

(d)    To the extent permitted by law, any grant may provide for deferred payment of the Option Price from the proceeds of sale through a bank or broker on a date satisfactory to the Company of some or all of the Common Stock to which such exercise relates.

(e)    Each grant will specify the period or periods of continuous service by the Optionee with the Company or any Subsidiary, if any, that is necessary before any Option Rights or installments thereof will vest. Option Rights may provide for continued vesting or the earlier vesting of such Option Rights, including in the event of the retirement, death, disability or termination of employment or service of a Participant or in the event of a Change in Control.

(f)    Any grant of Option Rights may specify Management Objectives regarding the vesting of such rights.

(g)    Option Rights granted under this Plan may be (i) options, including Incentive Stock Options, that are intended to qualify under particular provisions of the Code, (ii) options that are not intended to so qualify, or (iii) combinations of the foregoing.  Incentive Stock Options may only be granted to Participants who meet the definition of “employees” under Section 3401(c) of the Code.

(h)    No Option Right will be exercisable more than 10 years from the Date of Grant. The Committee may provide in any Evidence of Award for the automatic exercise of an Option Right upon such terms and conditions as established by the Committee.

(i)    Option Rights granted under this Plan may not provide for any dividends or dividend equivalents thereon.

(j)    Each grant of Option Rights will be evidenced by an Evidence of Award. Each Evidence of Award will be subject to this Plan and will contain such terms and provisions, consistent with this Plan, as the Committee may approve.

5. Appreciation Rights.

(a)     The Committee may, from time to time and upon such terms and conditions as it may determine, authorize the granting to any Participant of Appreciation Rights. An Appreciation Right will be the right of the Participant to receive from the Company an amount determined by the Committee, which will be expressed as a percentage of the Spread (not exceeding 100%) at the time of exercise.

(b)    Each grant of Appreciation Rights may utilize any or all of the authorizations, and will be subject to all of the requirements, contained in the following provisions:

(i)    Each grant may specify that the amount payable on exercise of an Appreciation Right will be paid by the Company in cash, Common Stock or any combination thereof.

(ii)    Each grant will specify the period or periods of continuous service by the Participant with the Company or any Subsidiary, if any, that is necessary before the Appreciation Rights or installments thereof will vest. Appreciation Rights may provide for continued vesting or the earlier vesting of such Appreciation Rights, including in the event of the retirement, death, disability or termination of employment or service of a Participant or in the event of a Change in Control.

(iii)    Any grant of Appreciation Rights may specify Management Objectives regarding the vesting of such Appreciation Rights.

(iv)    Appreciation Rights granted under this Plan may not provide for any dividends or dividend equivalents thereon.

(v)    Each grant of Appreciation Rights will be evidenced by an Evidence of Award. Each Evidence of Award will be subject to this Plan and will contain such terms and provisions, consistent with this Plan, as the Committee may approve.

(c)    Also, regarding Appreciation Rights:

(i)    Each grant will specify in respect of each Appreciation Right a Base Price, which (except with respect to awards under Section 22 of this Plan) may not be less than the Market Value per Share on the Date of Grant; and

(ii)    No Appreciation Right granted under this Plan may be exercised more than 10 years from the Date of Grant. The Committee may provide in any Evidence of Award for the automatic exercise of an Appreciation Right upon such terms and conditions as established by the Committee.

6.    Restricted Stock.  The Committee may, from time to time and upon such terms and conditions as it may determine, authorize the grant or sale of Restricted Stock to Participants.  Each such grant or sale may utilize any or all of the authorizations, and will be subject to all of the requirements, contained in the following provisions:

(a)    Each such grant or sale will constitute an immediate transfer of the ownership of Common Stock to the Participant in consideration of the performance of services, entitling such Participant to voting, dividend and other ownership rights (subject in particular to Section 6(g) of this Plan), but subject to the substantial risk of forfeiture and restrictions on transfer hereinafter described.

(b)     Each such grant or sale may be made without additional consideration or in consideration of a payment by such Participant that is less than the Market Value per Share on the Date of Grant.

(c)    Each such grant or sale will provide that the Restricted Stock covered by such grant or sale will be subject to a “substantial risk of forfeiture” within the meaning of Section 83 of the Code for a period to be determined by the Committee on the Date of Grant or until achievement of Management Objectives referred to in Section 6(e) of this Plan. 

(d)    Each such grant or sale will provide that during or after the period for which such substantial risk of forfeiture is to continue, the transferability of the Restricted Stock will be prohibited or restricted in the manner and to the extent prescribed by the Committee on the Date of Grant (which restrictions may include rights of repurchase or first refusal 

of the Company or provisions subjecting the Restricted Stock to a continuing substantial risk of forfeiture while held by any transferee).

(e)    Any grant of Restricted Stock may specify Management Objectives regarding the vesting of such Restricted Stock. 

(f)    Notwithstanding anything to the contrary contained in this Plan, Restricted Stock may provide for continued vesting or the earlier vesting of such Restricted Stock, including in the event of the retirement, death, disability or termination of employment or service of a Participant or in the event of a Change in Control.

(g)    Any such grant or sale of Restricted Stock may require that any and all dividends or other distributions paid thereon during the period of such restrictions be automatically deferred and/or reinvested in additional Restricted Stock, which will be subject to the same restrictions as the underlying award. For the avoidance of doubt, any such dividends or other distributions on Restricted Stock will be deferred until, and paid contingent upon, the vesting of such Restricted Stock.

(h)    Each grant or sale of Restricted Stock will be evidenced by an Evidence of Award. Each Evidence of Award will be subject to this Plan and will contain such terms and provisions, consistent with this Plan, as the Committee may approve. Unless otherwise directed by the Committee, (i) all certificates representing Restricted Stock will be held in custody by the Company until all restrictions thereon will have lapsed, together with a stock power or powers executed by the Participant in whose name such certificates are registered, endorsed in blank and covering such shares or (ii) all Restricted Stock will be held at the Company’s transfer agent in book entry form with appropriate restrictions relating to the transfer of such Restricted Stock.

7. Restricted Stock Units.  The Committee may, from time to time and upon such terms and conditions as it may determine, authorize the granting or sale of Restricted Stock Units to Participants. Each such grant or sale may utilize any or all of the authorizations, and will be subject to all of the requirements, contained in the following provisions:

(a)    Each such grant or sale will constitute the agreement by the Company to deliver Common Stock or cash, or a combination thereof, to the Participant in the future in consideration of the performance of services, but subject to the fulfillment of such conditions (which may include achievement regarding Management Objectives) during the Restriction Period as the Committee may specify. 

(b)    Each such grant or sale may be made without additional consideration or in consideration of a payment by such Participant that is less than the Market Value per Share on the Date of Grant.

(c)    Notwithstanding anything to the contrary contained in this Plan, Restricted Stock Units may provide for continued vesting or the earlier lapse or other modification of the Restriction Period, including in the event of the retirement, death, disability or termination of employment or service of a Participant or in the event of a Change in Control.

(d)    During the Restriction Period, the Participant will have no right to transfer any rights under his or her award and will have no rights of ownership in the Common Stock deliverable upon payment of the Restricted Stock Units and will have no right to vote them, but the Committee may, at or after the Date of Grant, authorize the payment of dividend equivalents on such Restricted Stock Units on a deferred and contingent basis, either in cash or in additional Common Stock; provided, however, that dividend equivalents or other distributions on Common Stock underlying Restricted Stock Units shall be deferred until and paid contingent upon the vesting of such Restricted Stock Units.

(e)    Each grant or sale of Restricted Stock Units will specify the time and manner of payment of the Restricted Stock Units that have been earned. Each grant or sale will specify that the amount payable with respect thereto will be paid by the Company in Common Stock or cash, or a combination thereof.

(f)    Each grant or sale of Restricted Stock Units will be evidenced by an Evidence of Award. Each Evidence of Award will be subject to this Plan and will contain such terms and provisions, consistent with this Plan, as the Committee may approve.

8. Cash Incentive Awards, Performance Shares and Performance Units.  The Committee may, from time to time and upon such terms and conditions as it may determine, authorize the granting of Cash Incentive Awards, Performance Shares and Performance Units. Each such grant may utilize any or all of the authorizations, and will be subject to all of the requirements, contained in the following provisions:

(a)     Each grant will specify the number or amount of Performance Shares or Performance Units, or amount payable with respect to a Cash Incentive Award, to which it pertains, which number or amount may be subject to adjustment to reflect changes in compensation or other factors.

(b)    The Performance Period with respect to each Cash Incentive Award or grant of Performance Shares or Performance Units will be such period of time as will be determined by the Committee, which may be subject to continued vesting or earlier lapse or other modification, including in the event of the retirement, death, disability or termination of employment or service of a Participant or in the event of a Change in Control.

(c)    Each grant of a Cash Incentive Award, Performance Shares or Performance Units will specify Management Objectives regarding the earning of the award.

(d)    Each grant will specify the time and manner of payment of a Cash Incentive Award, Performance Shares or Performance Units that have been earned.

(e)    The Committee may, on the Date of Grant of Performance Shares or Performance Units, provide for the payment of dividend equivalents to the holder thereof either in cash or in additional Common Stock, which dividend equivalents will be subject to deferral and payment on a contingent basis based on the Participant’s earning and vesting of the Performance Shares or Performance Units, as applicable, with respect to which such dividend equivalents are paid.

(f)    Each grant of a Cash Incentive Award, Performance Shares or Performance Units will be evidenced by an Evidence of Award. Each Evidence of Award will be subject to this Plan and will contain such terms and provisions, consistent with this Plan, as the Committee may approve.

9. Other Awards.

(a)    Subject to applicable law and the applicable limits set forth in Section 3 of this Plan, the Committee may authorize the grant to any Participant of Common Stock or such other awards that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Common Stock or factors that may influence the value of such shares, including, without limitation, convertible or exchangeable debt securities, other rights convertible or exchangeable into Common Stock, purchase rights for Common Stock, awards with value and payment contingent upon performance of the Company or specified Subsidiaries, affiliates or other business units thereof or any other factors designated by the Committee, and awards valued by reference to the book value of the Common Stock or the value of securities of, or the performance of specified Subsidiaries or affiliates or other business units of the Company. The Committee will determine the terms and conditions of such awards. Common Stock delivered pursuant to an award in the nature of a purchase right granted under this Section 9 will be purchased for such consideration, paid for at such time, by such methods, and in such forms, including, without limitation, Common Stock, other awards, notes or other property, as the Committee determines

(b)    Cash awards, as an element of or supplement to any other award granted under this Plan, may also be granted pursuant to this Section 9.

(c)    The Committee may authorize the grant of Common Stock as a bonus, or may authorize the grant of other awards in lieu of obligations of the Company or a Subsidiary to pay cash or deliver other property under this Plan or under other plans or compensatory arrangements, subject to such terms as will be determined by the Committee in a manner that complies with Section 409A of the Code.

(d)    The Committee may, at or after the Date of Grant, authorize the payment of dividends or dividend equivalents on awards granted under this Section 9 on a deferred and contingent basis, either in cash or in additional Common Stock, based upon the earning and vesting of such awards.

(e)    Each grant of an award under this Section 9 will be evidenced by an Evidence of Award. Each such Evidence of Award will be subject to this Plan and will contain such terms and provisions, consistent with this Plan, as the Committee may approve, and will specify the time and terms of delivery of the applicable award.

(f)    Notwithstanding anything to the contrary contained in this Plan, awards under this Section 9 may provide for the earning or vesting of, or earlier elimination of restrictions applicable to, such award, including in the event of the retirement, death, disability or termination of employment or service of a Participant or in the event of a Change in Control.

10. Administration of this Plan.

(a)    This Plan will be administered by the Committee; provided, however, that notwithstanding anything in this Plan to the contrary, the Board may grant awards under this Plan to non-employee Directors and administer this Plan with respect to such awards. The Committee may from time to time delegate all or any part of its authority under this Plan to a subcommittee thereof.  To the extent of any such delegation, references in this Plan to the Committee will be deemed to be references to such subcommittee.

(b)    The interpretation and construction by the Committee of any provision of this Plan or of any Evidence of Award (or related documents) and any determination by the Committee pursuant to any provision of this Plan or of any such agreement, notification or document will be final and conclusive. No member of the Committee shall be liable for any such action or determination made in good faith.  In addition, the Committee is authorized to take any action it determines in its sole discretion to be appropriate subject only to the express limitations contained in this Plan, and no authorization in any Plan section or other provision of this Plan is intended or may be deemed to constitute a limitation on the authority of the Committee.

(c)    To the extent permitted by law, the Committee may delegate to one or more of its members, to one or more officers of the Company, or to one or more agents or advisors, such administrative duties or powers as it may deem advisable, and the Committee, the subcommittee, or any person to whom duties or powers have been delegated as aforesaid, may employ one or more persons to render advice with respect to any responsibility the Committee, the subcommittee or such person may have under this Plan. The Committee may, by resolution, authorize one or more officers of the Company to do one or both of the following on the same basis as the Committee: (i) designate employees to be recipients of awards under this Plan; and (ii) determine the size of any such awards; provided, however, that (A) the Committee will not delegate such responsibilities to any such officer for awards granted to an employee who is an officer (for purposes of Section 16 of the Exchange Act), Director, or more than 10% “beneficial owner” (as such term is defined in Rule 13d-3 promulgated under the Exchange Act) of any class of the Company’s equity securities that is registered pursuant to Section 12 of the Exchange Act, as determined by the Committee in accordance with Section 16 of the Exchange Act; (B) the resolution providing for such authorization shall set forth the total number of shares of Common Stock such officer(s) may grant; and (C) the officer(s) will report periodically to the Committee regarding the nature and scope of the awards granted pursuant to the authority delegated.

11.     Adjustments.  The Committee shall make or provide for such adjustments in the number of and kind of shares of Common Stock covered by outstanding Option Rights, Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Shares and Performance Units granted hereunder and, if applicable, in the number of and kind of shares of Common Stock covered by other awards granted pursuant to Section 9 of this Plan, in the Option Price and Base Price provided in outstanding Option Rights and Appreciation Rights, respectively, in Cash Incentive Awards, and in other award terms, as the Committee, in its sole discretion, exercised in good faith, determines is equitably required to prevent dilution or enlargement of the rights of Participants that otherwise would result from (a) any extraordinary cash dividend, stock dividend, stock split, combination of shares, recapitalization or other change in the capital structure of the Company, (b) any merger, consolidation, spin-off, split-off, spin-out, split-up, reorganization, partial or complete liquidation or other distribution of assets, issuance of rights or warrants to purchase securities, or (c) any other corporate transaction or event having an effect similar to any of the foregoing. Moreover, in the event of any such transaction or event or in the event of a Change in Control, the Committee may provide in substitution for any or all outstanding awards under this Plan such alternative consideration (including cash), if any, as it, in good faith, may determine to be equitable in the circumstances and shall require in connection therewith the surrender of all awards so replaced in a manner that complies with Section 409A of the Code. In addition, for each Option Right or Appreciation Right with an Option Price or Base Price, respectively, greater than the consideration offered in connection with any such transaction or event or Change in Control, the Committee may in its discretion elect to cancel such Option Right or Appreciation Right without any payment to the person holding such Option Right or Appreciation Right. The Committee shall also make or provide for such adjustments in the number of shares of Common Stock specified in Section 3 of this Plan as the Committee in its sole discretion, exercised in good faith, determines is appropriate to reflect any transaction or event described in this Section 11; provided, however, that any such adjustment to the number specified in Section 3(c) of this Plan will be made only if and to the extent that such adjustment would not cause any Option Right intended to qualify as an Incentive Stock Option to fail to so qualify.

12. Change in Control.  For purposes of this Plan, except as may be otherwise prescribed by the Committee in an Evidence of Award made under this Plan, a “Change in Control” will be deemed to have occurred upon the occurrence (after the Effective Date) of any of the following events:

(a)    The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of either: (i) the then-outstanding Common Stock; or (ii) the combined voting power of the then-outstanding voting securities of the Company entitled to vote generally in the election of directors (“Voting Shares”); provided, however, that for purposes of this subsection (a), the following acquisitions shall not constitute a Change in Control: (A) any acquisition directly from the Company; (B) any acquisition by the Company; (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any of its Subsidiaries; or (D) any acquisition by any Person pursuant to a transaction which complies with clauses (i), (ii) and (iii) of subsection (c);

(b)    Individuals who, as of the Effective Date, constitute the Board (the “Incumbent Board”) cease for any reason (other than death or disability) to constitute at least a majority of the Board; provided, however, that any individual becoming a Director subsequent to the Effective Date whose election, or nomination for election by the Company’s stockholders, was approved by a vote or the approval of at least a majority of the Directors then comprising the Incumbent Board (either by a specific vote or written action or by approval of the proxy statement of the Company in which such person is named as a nominee for Director, without objection to such nomination) shall be considered as though such individual were a member of the Incumbent Board, but excluding for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of Directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board;

(c)    Consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”), in each case, unless, following such Business 

Combination, (i) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Common Stock and Voting Shares immediately prior to such Business Combination beneficially own, directly or indirectly, more than 66-2/3% of, respectively, the then-outstanding common stock and the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the entity resulting from such Business Combination (including, without limitation, an entity which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions relative to each other as their ownership, immediately prior to such Business Combination, of the Common Stock and Voting Shares of the Company, as the case may be, (ii) no Person (excluding any entity resulting from such Business Combination or any employee benefit plan (or related trust) sponsored or maintained by the Company or such entity resulting from such Business Combination) beneficially owns, directly or indirectly, 30% or more of, respectively, the then-outstanding common stock of the entity resulting from such Business Combination, or the combined voting power of the then-outstanding voting securities of such entity except to the extent that such ownership existed prior to the Business Combination, and (iii) at least a majority of the members of the board of directors of the entity resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or

(d)    Approval by the stockholders of the Company of a complete liquidation or dissolution of the Company.

13. Detrimental Activity and Recapture Provisions. Any Evidence of Award may reference a clawback policy of the Company or provide for the cancellation or forfeiture of an award or the forfeiture and repayment to the Company of any gain related to an award, or other provisions intended to have a similar effect, upon such terms and conditions as may be determined by the Committee from time to time, if a Participant, either (a) during employment or other service with the Company or a Subsidiary, or (b) within a specified period after termination of such employment or service, engages in any detrimental activity, as described in the applicable Evidence of Award or such clawback policy. In addition, notwithstanding anything in this Plan to the contrary, any Evidence of Award or such clawback policy may also provide for the cancellation or forfeiture of an award or the forfeiture and repayment to the Company of any Common Stock issued under and/or any other benefit related to an award, or other provisions intended to have a similar effect, including upon such terms and conditions as may be required by the Committee or under Section 10D of the Exchange Act and any applicable rules or regulations promulgated by the Securities and Exchange Commission or any national securities exchange or national securities association on which the Common Stock may be traded.

14.    Accommodations for Participants of Different Nationalities. In order to facilitate the making of any grant or combination of grants under this Plan, the Committee may provide for such special terms for awards to Participants as the Committee may consider necessary or appropriate to accommodate differences in local law, tax policy or custom given that Participants are expected to be nationals of both the United States of America and other countries, or to be employed by the Company or any Subsidiary both within and outside of the United States of America. Moreover, the Committee may approve such supplements to or amendments, restatements or alternative versions of this Plan (including sub-plans) (to be considered part of this Plan) as it may consider necessary or appropriate for such purposes, without thereby affecting the terms of this Plan as in effect for any other purpose, and the secretary or other appropriate officer of the Company may certify any such document as having been approved and adopted in the same manner as this Plan. No such special terms, supplements, amendments or restatements, however, will include any provisions that are inconsistent with the terms of this Plan as then in effect unless this Plan could have been amended to eliminate such inconsistency without further approval by the Stockholders.

15.    Transferability.

(a)    Except as otherwise determined by the Committee, and subject to compliance with Section 17(b) of this Plan and Section 409A of the Code, no Option Right, Appreciation Right, Restricted Stock, Restricted Stock Unit, Performance Share, Performance Unit, Cash Incentive Award, award contemplated by Section 9 of this Plan or dividend equivalents paid with respect to awards made under this Plan will be transferable by the Participant except by will or the laws of descent and distribution.  In no event will any such award granted under this Plan be transferred for 

value. Where transfer is permitted, references to “Participant” shall be construed, as the Committee deems appropriate, to include any permitted transferee to whom such award is transferred. Except as otherwise determined by the Committee, Option Rights and Appreciation Rights will be exercisable during the Participant’s lifetime only by him or her or, in the event of the Participant’s legal incapacity to do so, by his or her guardian or legal representative acting on behalf of the Participant in a fiduciary capacity under state law or court supervision.

(b)    The Committee may specify on the Date of Grant that part or all of the Common Stock that is (i) to be issued or transferred by the Company upon the exercise of Option Rights or Appreciation Rights, upon the termination of the Restriction Period applicable to Restricted Stock Units or upon payment under any grant of Performance Shares or Performance Units or (ii) no longer subject to the substantial risk of forfeiture and restrictions on transfer referred to in Section 6 of this Plan, will be subject to further restrictions on transfer, including minimum holding periods.

16.    Withholding Taxes.  To the extent that the Company is required to withhold federal, state, local or foreign taxes or other amounts in connection with any payment made or benefit realized by a Participant or other person under this Plan, and the amounts available to the Company for such withholding are insufficient, it will be a condition to the receipt of such payment or the realization of such benefit that the Participant or such other person make arrangements satisfactory to the Company for payment of the balance of such taxes or other amounts required to be withheld, which arrangements (in the discretion of the Committee) may include relinquishment of a portion of such benefit. If a Participant’s benefit is to be received in the form of Common Stock, and such Participant fails to make arrangements for the payment of taxes or other amounts, then, unless otherwise determined by the Committee, the Company will withhold Common Stock having a value equal to the amount required to be withheld. Notwithstanding the foregoing, when a Participant is required to pay the Company an amount required to be withheld under applicable income, employment, tax or other laws, the Participant may elect, unless otherwise determined by the Committee, to satisfy the obligation, in whole or in part, by having withheld, from the Common Stock required to be delivered to the Participant, Common Stock having a value equal to the amount required to be withheld or by delivering to the Company other shares of Common Stock held by such Participant. The Common Stock used for tax or other withholding will be valued at an amount equal to the fair market value of such Common Stock on the date the benefit is to be included in Participant’s income. In no event will the fair market value of the Common Stock to be withheld and delivered pursuant to this Section 16 exceed the minimum amount required to be withheld, unless (i) an additional amount can be withheld and not result in adverse accounting consequences, and (ii) such additional withholding amount is authorized by the Committee.  Participants will also make such arrangements as the Company may require for the payment of any withholding tax or other obligation that may arise in connection with the disposition of Common Stock acquired upon the exercise of Option Rights.

17.    Compliance with Section 409A of the Code.  

(a)    To the extent applicable, it is intended that this Plan and any grants made hereunder comply with the provisions of Section 409A of the Code, so that the income inclusion provisions of Section 409A(a)(1) of the Code do not apply to the Participants. This Plan and any grants made hereunder will be administered in a manner consistent with this intent. Any reference in this Plan to Section 409A of the Code will also include any regulations or any other formal guidance promulgated with respect to such section by the U.S. Department of the Treasury or the Internal Revenue Service. 

(b)    Neither a Participant nor any of a Participant’s creditors or beneficiaries will have the right to subject any deferred compensation (within the meaning of Section 409A of the Code) payable under this Plan and grants hereunder to any anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment or garnishment.  Except as permitted under Section 409A of the Code, any deferred compensation (within the meaning of Section 409A of the Code) payable to a Participant or for a Participant’s benefit under this Plan and grants hereunder may not be reduced by, or offset against, any amount owed by a Participant to the Company or any of its Subsidiaries. 

(c)    If, at the time of a Participant’s separation from service (within the meaning of Section 409A of the Code), (i) the Participant will be a specified employee (within the meaning of Section 409A of the Code and using the identification methodology selected by the Company from time to time) and (ii) the Company makes a good faith 

determination that an amount payable hereunder constitutes deferred compensation (within the meaning of Section 409A of the Code) the payment of which is required to be delayed pursuant to the six-month delay rule set forth in Section 409A of the Code in order to avoid taxes or penalties under Section 409A of the Code, then the Company will not pay such amount on the otherwise scheduled payment date but will instead pay it, without interest, on the tenth business day of the seventh month after such separation from service. 

(d)    Solely with respect to any award that constitutes nonqualified deferred compensation subject to Section 409A of the Code and that is payable on account of a Change in Control (including any installments or stream of payments that are accelerated on account of a Change in Control), a Change in Control shall occur only if such event also constitutes a “change in the ownership,” “change in effective control,” and/or a “change in the ownership of a substantial portion of assets” of the Company as those terms are defined under Treasury Regulation §1.409A-3(i)(5), but only to the extent necessary to establish a time and form of payment that complies with Section 409A of the Code, without altering the definition of Change in Control for any purpose in respect of such award.

(e)    Notwithstanding any provision of this Plan and grants hereunder to the contrary, in light of the uncertainty with respect to the proper application of Section 409A of the Code, the Company reserves the right to make amendments to this Plan and grants hereunder as the Company deems necessary or desirable to avoid the imposition of taxes or penalties under Section 409A of the Code. In any case, a Participant will be solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on a Participant or for a Participant’s account in connection with this Plan and grants hereunder (including any taxes and penalties under Section 409A of the Code), and neither the Company nor any of its affiliates will have any obligation to indemnify or otherwise hold a Participant harmless from any or all of such taxes or penalties.

18.     Amendments.

(a)    The Board may at any time and from time to time amend this Plan in whole or in part; provided, however, that if an amendment to this Plan, for purposes of applicable stock exchange rules and except as permitted under Section 11 of this Plan, (i) would materially increase the benefits accruing to Participants under this Plan, (ii) would materially increase the number of securities which may be issued under this Plan, (iii) would materially modify the requirements for participation in this Plan, or (iv) must otherwise be approved by the Stockholders in order to comply with applicable law or the rules of the Nasdaq Stock Market or, if the Common Stock is not traded on the Nasdaq Stock Market, the principal national securities exchange upon which the Common Stock is traded or quoted, all as determined by the Board, then, such amendment will be subject to Stockholder approval and will not be effective unless and until such approval has been obtained.

(b)    Except in connection with a corporate transaction or event described in Section 11 of this Plan or in connection with a Change in Control, the terms of outstanding awards may not be amended to reduce the Option Price of outstanding Option Rights or the Base Price of outstanding Appreciation Rights, or cancel outstanding “underwater” Option Rights or Appreciation Rights (including following a Participant’s voluntary surrender of “underwater” Option Rights or Appreciation Rights) in exchange for cash, other awards or Option Rights or Appreciation Rights with an Option Price or Base Price, as applicable, that is less than the Option Price of the original Option Rights or Base Price of the original Appreciation Rights, as applicable, without Stockholder approval. This Section 18(b) is intended to prohibit the repricing of “underwater” Option Rights and Appreciation Rights and will not be construed to prohibit the adjustments provided for in Section 11 of this Plan. Notwithstanding any provision of this Plan to the contrary, this Section 18(b) may not be amended without approval by the Stockholders.

(c)    If permitted by Section 409A of the Code, but subject to Section 18(d), including in the case of termination of employment or service, or in the case of unforeseeable emergency or other circumstances or in the event of a Change in Control, to the extent a Participant holds an Option Right or Appreciation Right not immediately exercisable in full, or any Restricted Stock as to which the substantial risk of forfeiture or the prohibition or restriction on transfer has not lapsed, or any Restricted Stock Units as to which the Restriction Period has not been completed, or 

any Cash Incentive Awards, Performance Shares or Performance Units which have not been fully earned, or any dividend equivalents or other awards made pursuant to Section 9 of this Plan subject to any vesting schedule or transfer restriction, or who holds Common Stock subject to any transfer restriction imposed pursuant to Section 15(b) of this Plan, the Committee may, in its sole discretion, provide for continued vesting or accelerate the time at which such Option Right, Appreciation Right or other award may vest or be exercised or the time at which such substantial risk of forfeiture or prohibition or restriction on transfer will lapse or the time when such Restriction Period will end or the time at which such Cash Incentive Awards, Performance Shares or Performance Units will be deemed to have been earned or the time when such transfer restriction will terminate or may waive any other limitation or requirement under any such award.

(d)    Subject to Section 18(b) of this Plan, the Committee may amend the terms of any award theretofore granted under this Plan prospectively or retroactively.  Except for adjustments made pursuant to Section 11 of this Plan, no such amendment will materially impair the rights of any Participant without his or her consent. The Board may, in its discretion, terminate this Plan at any time. Termination of this Plan will not affect the rights of Participants or their successors under any awards outstanding hereunder and not exercised in full on the date of termination.

19.    Governing Law.  This Plan and all grants and awards and actions taken hereunder will be governed by and construed in accordance with the internal substantive laws of the State of Delaware.

20.    Effective Date/Termination. The Super Micro Computer, Inc. 2020 Equity and Incentive Compensation Plan was effective as of the Effective Date.  This 2022 amendment and restatement of the Super Micro Computer, Inc. 2020 Equity and Incentive Compensation Plan will be effective as of the date on which such amendment and restatement is approved by the Stockholders (the “Amendment and Restatement Date”). No grants will be made on or after the Effective Date under the Predecessor Plans, provided that outstanding awards granted under the Predecessor Plans continued following the Effective Date. No grant will be made under this Plan on or after the tenth anniversary of the Amendment and Restatement Date, but all grants made prior to such date will continue in effect thereafter subject to the terms thereof and of this Plan. For clarification purposes, the terms and conditions of this Plan shall not apply to or otherwise impact previously granted and outstanding awards under the Predecessor Plans, as applicable (except for purposes of providing for shares of Common Stock under such awards to be added to the aggregate number of shares of Common Stock available under Section 3(a)(i) of this Plan pursuant to the share counting rules of this Plan).

21.    Miscellaneous Provisions.

(a)    The Company will not be required to issue any fractional Common Stock pursuant to this Plan. The Committee may provide for the elimination of fractions or for the settlement of fractions in cash.

(b)    This Plan will not confer upon any Participant any right with respect to continuance of employment or other service with the Company or any Subsidiary, nor will it interfere in any way with any right the Company or any Subsidiary would otherwise have to terminate such Participant’s employment or other service at any time.

(c)    Except with respect to Section 21(e) of this Plan, to the extent that any provision of this Plan would prevent any Option Right that was intended to qualify as an Incentive Stock Option from qualifying as such, that provision will be null and void with respect to such Option Right. Such provision, however, will remain in effect for other Option Rights and there will be no further effect on any provision of this Plan.

(d)    No award under this Plan may be exercised by the holder thereof if such exercise, and the receipt of cash or shares thereunder, would be, in the opinion of counsel selected by the Company, contrary to law or the regulations of any duly constituted authority having jurisdiction over this Plan.

(e)    Absence on leave approved by a duly constituted officer of the Company or any of its Subsidiaries will not be considered interruption or termination of service of any employee for any purposes of this Plan or awards granted hereunder.

(f)    No Participant will have any rights as a Stockholder with respect to any Common Stock subject to awards granted to him or her under this Plan prior to the date as of which he or she is actually recorded as the holder of such Common Stock upon the share records of the Company.

(g)    The Committee may condition the grant of any award or combination of awards authorized under this Plan on the surrender or deferral by the Participant of his or her right to receive a cash bonus or other compensation otherwise payable by the Company or a Subsidiary to the Participant.

(h)    Except with respect to Option Rights and Appreciation Rights, the Committee may permit Participants to elect to defer the issuance of Common Stock under this Plan pursuant to such rules, procedures or programs as it may establish for purposes of this Plan and which are intended to comply with the requirements of Section 409A of the Code. The Committee also may provide that deferred issuances and settlements include the crediting of dividend equivalents or interest on the deferral amounts.

(i)    If any provision of this Plan is or becomes invalid or unenforceable in any jurisdiction, or would disqualify this Plan or any award under any law deemed applicable by the Committee, such provision will be construed or deemed amended or limited in scope to conform to applicable laws or, in the discretion of the Committee, it will be stricken and the remainder of this Plan will remain in full force and effect. Notwithstanding anything in this Plan or an Evidence of Award to the contrary, nothing in this Plan or in an Evidence of Award prevents a Participant from providing, without prior notice to the Company, information to governmental authorities regarding possible legal violations or otherwise testifying or participating in any investigation or proceeding by any governmental authorities regarding possible legal violations, and for purpose of clarity a Participant is not prohibited from providing information voluntarily to the Securities and Exchange Commission pursuant to Section 21F of the Exchange Act.

22.    Share-Based Awards in Substitution for Awards Granted by Another Company.  Notwithstanding anything in this Plan to the contrary:

(a)    Awards may be granted under this Plan in substitution for or in conversion of, or in connection with an assumption of, stock options, stock appreciation rights, restricted stock, restricted stock units or other share or share-based awards held by awardees of an entity engaging in a corporate acquisition or merger transaction with the Company or any Subsidiary. Any conversion, substitution or assumption will be effective as of the close of the merger or acquisition, and, to the extent applicable, will be conducted in a manner that complies with Section 409A of the Code. The awards so granted may reflect the original terms of the awards being assumed or substituted or converted for and need not comply with other specific terms of this Plan, and may account for Common Stock substituted for the securities covered by the original awards and the number of shares subject to the original awards, as well as any exercise or purchase prices applicable to the original awards, adjusted to account for differences in stock prices in connection with the transaction.

(b)    In the event that a company acquired by the Company or any Subsidiary or with which the Company or any Subsidiary merges has shares available under a pre-existing plan previously approved by stockholders and not adopted in contemplation of such acquisition or merger, the shares available for grant pursuant to the terms of such plan (as adjusted, to the extent appropriate, to reflect such acquisition or merger) may be used for awards made after such acquisition or merger under this Plan; provided, however, that awards using such available shares may not be made after the date awards or grants could have been made under the terms of the pre-existing plan absent the acquisition or merger, and may only be made to individuals who were not employees or directors of the Company or any Subsidiary prior to such acquisition or merger.

(c)    Any Common Stock that is issued or transferred by, or that are subject to any awards that are granted by, or become obligations of, the Company under Sections 22(a) or 22(b) of this Plan will not reduce the Common Stock available for issuance or transfer under this Plan or otherwise count against the limits contained in Section 3 of this Plan. In addition, no Common Stock subject to an award that is granted by, or becomes an obligation of, the Company under Sections 22(a) or 22(b) of this Plan will be added to the aggregate limit contained in Section 3(a)(i) of this Plan.

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