Document:

1999 Stock Plan for Non-Employee Directors

 Exhibit 10.3 
  
 MICROSOFT CORPORATION 
 1999 STOCK PLAN FOR NON-EMPLOYEE DIRECTORS 
 (as amended and restated August 24, 2004)*

  
 1. Purpose 
  
 The purpose of the Microsoft Corporation 1999 Stock Plan for Non-Employee
Directors (the “Plan”) is to attract and retain the services of experienced and knowledgeable independent directors of Microsoft Corporation (the “Corporation”) for the benefit of the Corporation and its stockholders and to
provide additional incentive for such directors to continue to work for the best interests of the Corporation and its stockholders through continuing ownership of its common stock. 
  
 2. Shares Subject to the Plan 
  
 The total number of shares of common stock of the Corporation (“Shares”) for which Awards (as defined in Section
4) may be granted under the Plan shall not exceed 3,500,000 in the aggregate, subject to adjustment in accordance with Section 12 hereof. Within the foregoing limitation, Shares underlying Awards that have been granted pursuant to the Plan but which
Awards have lapsed or otherwise terminated without delivery of Shares shall become available for the grant of additional Awards. 
  
 3. Administration of Plan 
  
 The Board of Directors of the Corporation shall administer the Plan. The Board may delegate responsibility for administration of the Plan to a Board
committee (the “Committee”) composed solely of two or more directors, each of whom is a “Non-Employee Director” (as that term is defined in Rule 16b-3(b) promulgated by the Securities and Exchange Commission pursuant to its
authority under the Securities Exchange Act of 1934 (the “Exchange Act”)). The Board or the Committee, as the case may be, shall have the power to construe the Plan, to determine all questions arising thereunder, and to adopt and amend
such rules and regulations for the administration of the Plan as it may deem desirable. References to the “Board” in this Plan shall be deemed to refer to either the Board or the Committee, whichever is appropriate in the context in which
the word is used. 
  
 4. Discretionary Award Grants

  
 Pursuant to this Plan, the Board may grant in its discretion
an Award (as defined in this Section 4) to any person who (a) is elected a director of the Corporation, and (b) is not, and has not during the immediately preceding 12 month period been, an employee of the Corporation or any subsidiary of the
Corporation. An “Award” may be either (i) a grant of a stock option (an “Option”) or (ii) a grant of Shares or of a right to receive Shares or their cash equivalent (or both) (a “Stock Award”). No Awards under this
Section 4 may be granted to any individual director with respect to more than 10,000 shares for any calendar year or, in the case of a newly elected director, more than 25,000 shares for the year in which the director is first elected. No director
shall have any claim or right to be granted an Award under this Plan. Having received an Award under this Plan shall not give a director any right to receive any other Award under this Plan and the Board may determine that any or all director(s) are
not eligible to receive an Award under this Plan for an indefinite period or for a specified year or years. 

 5. Award Agreement 
  
 Each Award granted under the Plan shall be evidenced by an Award agreement (the “Agreement”) duly executed on
behalf of the Corporation and by the director to whom such Award is granted, which Agreements may but need not be identical and which shall (a) comply with and be subject to the terms and conditions of the Plan and (b) provide that the director
agrees to continue to serve as a director of the Corporation during the term for which he or she was elected. Each Award shall vest over a period of not less than three (3) years from the date of grant, except with respect to Awards that are granted
in lieu of cash compensation. Any Agreement may contain such other terms, provisions, and conditions not inconsistent with the Plan as may be determined by the Board. No Award shall be deemed granted within the meaning of the Plan and no purported
grant of any Award shall be effective, until such Agreement shall have been duly executed on behalf of the Corporation and the director to whom the Award is to be granted. 
  
 6. Stock Awards 
  
 (a) Stock Awards may be granted either alone, in addition to, or in tandem with other Awards granted under the Plan. After the Board determines that it
will offer a Stock Award, it will advise the director in writing or electronically, by means of an Agreement, of the terms, conditions and restrictions, including vesting, if any, related to the offer, including the number of Shares that the
director shall be entitled to receive or purchase, the price to be paid, if any, and, if applicable, the time within which the director must accept the offer. The offer shall be accepted by execution of an Agreement in the manner determined by the
Board. 
  
 (b) Unless the Board determines otherwise, the
Agreement shall provide for the forfeiture of the non-vested Shares underlying such Stock Award upon the director ceasing to be a director for any reason, including death. To the extent that the director purchased the Shares granted under such Stock
Award and any such Shares remain non-vested at the time the director ceases to be a director, the cessation of director status shall cause an immediate sale of such non-vested Shares to the Company at the original price per Share paid by the
director. 
  
 7. Options  
  
 (a) The Board shall set the exercise price for an Option granted pursuant to
Section 4 of the Plan in its discretion. 
  
 (b) Each Option shall
expire no more than ten years from the date of the granting thereof, but shall be subject to earlier termination as follows: 
  
 (i) In the event of the death of an Option holder, the Option granted to such person may be exercised to the extent exercisable on the date of death,
within the earlier of (x) 180 days after the date of death of such person and (y) the date on which the Option expires by its terms, by the estate of such person, or by any person or persons who acquired the right to exercise such Option by will or
by the laws of descent and distribution. 
  

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 (ii) In the event that an Option holder ceases to be a director of the Corporation, other than by reason
of his or her death, an Option granted to such person may be exercised, to the extent exercisable on the date such person ceases to be a director, within the earlier of (x) 180 days after the date such person ceases to be a director and (y) the date
on which the Option expires by its terms. 
  
 8.
Vesting and Exercise of Awards 
  
 (a) The Board shall set
the vesting schedule for Awards granted pursuant to Section 4 of the Plan in its discretion. 
  
 (b) To the extent that the right to exercise an Option has vested and is in effect, the Option may be exercised from time to time, by giving written notice, signed by the person or persons exercising the Option, to
the Corporation, stating the number of whole Shares with respect to which the Option is being exercised, accompanied by payment in full for such Shares, which payment may be in whole or in part in shares of the common stock of the Corporation
already owned by the person or persons exercising the Option, valued at fair market value on the date of payment. For purposes hereof, the fair market value of the Shares covered by an Option shall be the closing price of the Shares on the
applicable date as reported in the National Market List of the National Association of Securities Dealers Inc. Automated Quotation System or on the principal national securities exchange on which the Shares are then listed for trading. 

 
 (c) Upon exercise of the Option, delivery of a certificate for fully paid
and non-assessable Shares shall be made at the principal office of the Corporation in the State of Washington to the person or persons exercising the Option as soon as practicable (but in no event more than 30 days) after the date of receipt of the
notice of exercise by the Corporation, or at such time, place, and manner as may be agreed upon by the Corporation and the person or persons exercising the Option. 
  
 (d) Upon a Stock Award becoming fully vested and nonforfeitable, delivery of a certificate for fully paid and non-assessable
Shares shall be made at the principal office of the Corporation in the State of Washington to the person to whom the Stock Award was granted as soon as practicable (but in no event more than 30 days) after the date on which the Stock Award becomes
fully vested and nonforfeitable, or at such time, place, and manner as may be agreed upon by the Corporation and the holder of the Stock Award. 
  
 (e) Prior to issuance of the Shares in connection with an Award, the director receiving the Award may request the Corporation to withhold and pay on the
director’s behalf any federal, state, and local income tax obligations applicable to such Award by having the Corporation withhold Shares having a value equal to the amount requested to be withheld, and any Award under the Plan may permit that
such withholding tax be paid by having the Corporation withhold Shares having a value equal to the amount requested to be withheld. The value of the Shares to be withheld shall equal the fair market value of the Shares on the day the Award is
exercised or granted, as applicable. The right of a director to dispose of Shares to the Corporation in satisfaction of withholding tax obligations shall be deemed to be approved as part of the initial grant of an Award, unless thereafter rescinded,
and shall otherwise be made in compliance with Rule 16b-3 and other applicable regulations. 
  

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 9. Merger, Consolidation, Sale of Assets, etc., Resulting in a Change in Control 
  
 (a) In the event of a Change in Control (as hereinafter defined),
notwithstanding the vesting provisions contained in the Agreement granting an Option or Stock Award, as applicable, to a director pursuant to this Plan, such Option shall become fully exercisable or Stock Award shall become fully vested and
nonforfeitable if, within one year of such Change in Control, such director shall cease for any reason to be a member of the Board. For purposes hereof, a Change in Control of the Corporation shall be deemed to have occurred if (i) there shall be
consummated (x) any consolidation or merger of the Corporation in which the Corporation is not the continuing or surviving corporation or pursuant to which shares of the common stock of the Corporation would be converted into cash, securities, or
other property, other than a merger of the Corporation in which the holders of the common stock of the Corporation immediately prior to the merger have the same proportionate ownership of common stock of the surviving corporation immediately after
the merger, or (y) any sale, lease, exchange, or other transfer (in one transaction or a series of related transactions) of all, or substantially all, of the assets of the Corporation; or (ii) the stockholders of the Corporation approve any plan or
proposal for the liquidation or dissolution of the Corporation; or (iii) any person (as such term is used in Sections 13(d) and 14(d)(2) of the Exchange Act), other than William H. Gates III, shall become the beneficial owner (within the meaning of
Rule 13d-3 under the Exchange Act) of 30% or more of the Corporation’s outstanding common stock; or (iv) during any period of two consecutive years, individuals who at the beginning of such period constitute the entire Board of Directors shall
cease for any reason to constitute a majority thereof unless the election, or the nomination for election by the Corporation’s stockholders, of each new director was approved by a vote of at least two-thirds of the directors then still in
office who were directors at the beginning of the period. 
  
 (b)
Any exercise of an Option permitted pursuant to this Section 9 shall be made within 180 days of the related director’s termination as a director of the Corporation. 
  
 10. Awards Not Transferable 
  

An Award granted pursuant to the Plan may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or
by the laws of descent or distribution and may be exercised, during the lifetime of the holder of an Award, only by the holder; provided that the Board may permit further transferability, on a general or specific basis, and may impose conditions and
limitations on any permitted transferability. 
  
 11. No Rights
as Stockholder Until Holder 
  
 Neither the recipient of an
Award under the Plan nor his successors in interest shall have any rights as a stockholder of the Corporation with respect to any Shares subject to an Award granted to such person until such person becomes a holder of record of such Shares.

  

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 12. Adjustments Upon Changes in Capitalization or Merger 
  
 Subject to any required action by the stockholders of the Corporation, the
number of shares of common stock covered by each outstanding Award, and the number of shares of common stock which have been authorized for issuance under the Plan but as to which no Awards have yet been granted or which have been returned to the
Plan upon cancellation or expiration of an Award, as well as the price per share of common stock covered by each outstanding Award, shall be proportionately adjusted for any increase or decrease in the number of issued shares of common stock
resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the common stock, or any other increase or decrease in the number of issued shares of common stock effected without receipt of consideration by the
Corporation; provided, however, that conversion of any convertible securities of the Corporation shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall be made by the Board, whose determination
in that respect shall be final, binding, and conclusive. Except as expressly provided herein, no issuance by the Corporation 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 Award. 
  
 In the event of the proposed dissolution or liquidation of the Corporation, an outstanding Award (i.e., an Option that has not been exercised or a Stock
Award that has not become fully vested and nonforfeitable) will terminate immediately prior to the consummation of such proposed action, unless otherwise provided by the Board. The Board may, in the exercise of its sole discretion in such instances,
declare that any Option shall terminate as of a date fixed by the Board and give each Option holder the right to exercise an Option as to all or any part of the stock covered by such Option, including Shares as to which the Option would not
otherwise be exercisable. In the event of a proposed sale of all or substantially all of the assets of the Corporation, or the merger of the Corporation with or into another corporation, each Award shall be assumed or an equivalent Award shall be
substituted by such successor corporation or a parent or subsidiary of such successor corporation, unless such successor corporation does not agree to assume each and every Award or to substitute an equivalent Award, in which case the Board shall,
in lieu of such assumption or substitution, provide for the immediate full vesting of any Stock Awards not yet fully vested, or provide for the Option holder to have the right to exercise such Option as to all of the stock covered by such Option,
including Shares as to which such Option would not otherwise be exercisable, or both. If the Board makes an Option fully exercisable in lieu of assumption or substitution in the event of a merger or sale of assets, the Board shall notify the Option
holder that the Option shall be fully exercisable for a period of fifteen (15) days from the date of such notice, and the Option will terminate upon the expiration of such period. 
  
 13. Restrictions on Issue of Shares 
  
 Notwithstanding anything in this Plan to the contrary, the Corporation may delay the issuance of Shares covered by any Award
and the delivery of a certificate for such Shares until one of the following conditions shall be satisfied: 
  
 (a) the Shares to be issued in connection with the grant or exercise of an Award, as applicable, are at the time of the issue of such Shares by the
Corporation effectively registered under applicable federal securities laws now in force or hereafter amended; or 
  

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 (b) counsel for the Corporation shall have given an opinion, which opinion shall not be unreasonably
conditioned or withheld, that such Shares are exempt from registration under applicable federal securities laws now in force or hereafter amended. 
  
 It is intended that all grants of Stock Awards and exercises of Options shall be effective. Accordingly, the Corporation shall use its best efforts to
bring about compliance with the above conditions within a reasonable time, except that the Corporation shall be under no obligation to cause a registration statement or a post-effective amendment to any registration statement to be prepared at its
expense solely for the purpose of covering the issuance of Shares in connection with the grant or exercise of any Award. 
  
 14. Purchase for Investment 
  
 Unless the Shares to be issued in connection with the grant or exercise of an Award granted under the Plan have been effectively registered under the
Securities Act of 1933 as now in force or hereafter amended, the Corporation shall be under no obligation to issue any Shares covered by any Award unless the person or persons to whom the Shares are to be issued, in whole or in part, shall give a
written representation and undertaking to the Corporation, which is satisfactory in form and scope to counsel to the Corporation and upon which, in the opinion of such counsel, the Corporation may reasonably rely, that he or she is acquiring the
shares issued or transferred to him or her for his or her own account as an investment and not with a view to, or for sale in connection with, the distribution of any such Shares, and that he or she will make no transfer of the same except in
compliance with any rules and regulations in force at the time of such transfer under the Securities Act of 1933, or any other applicable law, and that if Shares are issued or transferred without such registration a legend to this effect may be
placed upon the certificates representing the Shares. 
  
 15.
Effective Date 
  
 The effective date (the “Effective
Date”) of this Plan is November 10, 1999, the date on which the Plan was approved by stockholders of the Corporation. The Plan is amended and restated as of September 11, 2003, subject to approval by stockholders of the Corporation. 

 
 16. Expenses of the Plan 
  
 All costs and expenses of the adoption and administration of the Plan shall
be borne by the Corporation and none of such expenses shall be charged to any director. 
  
 17. Termination and Amendment of Plan 
  
 Unless sooner terminated as herein provided, the Plan shall terminate ten years from the Effective Date. The Board may at any time terminate the Plan or make such modification or amendment thereof as it deems
advisable; provided, however, that stockholder approval will be required for any amendment that will (a) increase the total number of shares as to which Awards may be granted under the Plan, (b) modify the class of persons eligible to receive
Awards, or (c) otherwise require stockholder approval under any applicable law or regulation. In addition, the Board shall not amend the provisions in the Plan regarding the amount, pricing, and timing for grants pursuant to this Plan more than once
every six months, other than to comport with changes in the Internal Revenue Code, or the rules thereunder. Termination or any modification or amendment of the Plan shall not, without the consent of an Award holder, affect his or her rights under an
Award previously granted to him or her. 
  

	*	As amended and restated as of August 24, 2004, excluding amendments made July 20, 2004 that will be effective only after approval by the shareholders at the 2004 Annual Meeting of
Shareholders. 

  
 All share numbers in the Plan reflect the 2-for-1
stock split effected February 2003. 
  

 62003 Employee Stock Purchase Plan

 Exhibit 10.6 
  
 Microsoft Corporation 
  
 2003 Employee Stock Purchase Plan 
  
 As amended effective July 1, 2004 

 MICROSOFT CORPORATION 
 2003 EMPLOYEE STOCK PURCHASE PLAN 
  
 The 2003 Employee Stock Purchase Plan (the “Plan”) was approved by Company’s Board of Directors on August 22, 2002 and by its Shareholders on November 5, 2002. The Plan was amended to read as set forth
herein effective July 1, 2004. 
  
 1. Purpose and Structure of
the Plan and its Sub-Plans. 
  
 1.1 The purpose of this Plan
is to provide eligible employees of the Company and Participating Companies who wish to become shareholders in the Company a convenient method of doing so. It is believed that employee participation in the ownership of the business will be to the
mutual benefit of both the employees and the Company. This Plan document is an omnibus document which includes a sub-plan (“Statutory Plan”) designed to permit offerings of grants to employees of certain Subsidiaries that are Participating
Companies where such offerings are intended to satisfy the requirements of Section 423 of the Code (although the Company makes no undertaking nor representation to obtain or maintain qualification under Section 423 for any Subsidiary, individual,
offering or grant) and also separate sub-plans (“Non-Statutory Plans”) which permit offerings of grants to employees of certain Participating Companies which are not intended to satisfy the requirements of Section 423 of the Code. Section
6 of the Plan sets forth the maximum number of shares to be offered under the Plan (and its sub-plans), subject to adjustments as permitted under Sections 19 and 20. The Committee shall determine from time to time the method for allocating the
number of such total shares to be offered under each sub-plan. Such determination shall be in the Committee’s discretion and shall not require shareholder approval. 
  
 1.2 The Statutory Plan shall be a separate and independent plan from the Non-Statutory Plans, provided, however, that the
total number of shares authorized to be issued under the Plan applies in the aggregate to both the Statutory Plan and the Non-Statutory Plans. Offerings under the Non-Statutory Plans may be made to achieve desired tax or other objectives in
particular locations outside the United States of America or to comply with local laws applicable to offerings in such foreign jurisdictions. Offerings under the Non-Statutory Plans may also be made to employees of entities that are not
Subsidiaries. 
  
 1.3 All employees who participate in the
Statutory Plan shall have the same rights and privileges under such sub-plan except for differences that may be mandated by local law and are consistent with the requirements of Code Section 423(b)(5). The terms of the Statutory Plan shall be those
set forth in this Plan document to the extent such terms are consistent with the requirements for qualification under Code Section 423. The Committee may adopt Non-Statutory Plans applicable to particular Participating Companies or locations that
are not participating in the Statutory 

  

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Plan. The terms of each Non-Statutory Plan may take precedence over other provisions in this document, with the exception of Sections 6, 19 and 20 with
respect to the total number of shares available to be offered under the Plan for all sub-plans. Unless otherwise superseded by the terms of such Non-Statutory Plan, the provisions of this Plan document shall govern the operation of such
Non-Statutory Plan. Except to the extent expressly set forth herein or where the context suggests otherwise, any reference herein to “Plan” shall be construed to include a reference to the Statutory Plan and the Non-Statutory Plans.

  
 2. Definitions. 
  
 2.1 “Account” shall mean the funds accumulated with respect to an
individual employee as a result of deductions from such employee’s paycheck (or otherwise as permitted in certain circumstances under the terms of the Plan) for the purpose of purchasing stock under this Plan. The funds allocated to an
employee’s Account shall remain the property of the respective employee at all times but may be commingled with the general funds of the Company, except to the extent such commingling may be prohibited by the laws of any applicable
jurisdiction. 
  
 2.2 “Affiliate” means an entity, other
than a Subsidiary, in which the Company has an equity or other ownership interest. 
  
 2.3 “Board” means the Board of Directors of the Company. 
  
 2.4 “Code” means the Internal Revenue Code of 1986, as amended from time to time. 
  
 2.5 “Committee” means any committee or officer(s) of the Company to which or to whom the Board has delegated any
or all of its authority and obligations under this Plan pursuant to Section 22.1. To the extent the Board reserves authority to itself with respect to certain powers under this Plan, or if no Committee has been established, references to Committee
shall be construed to mean the Board. 
  
 2.6 “Company”
means Microsoft Corporation. 
  
 2.7 “Compensation”
means total cash performance-based pay received by the participant from a Participating Company. By way of illustration, but not limitation, Compensation includes salary, wages, performance bonuses, commissions, incentive compensation and overtime
but excludes relocation, equalization, patent and sign-on bonuses, expense reimbursements, meal allowances, commuting or automobile allowances, any payments (such as guaranteed bonuses in certain foreign jurisdictions) with respect to which salary
reductions are not permitted by the laws of the applicable jurisdiction, and income realized as a result of participation in any stock plan, including without limitation any stock option, stock award, stock purchase, or similar plan, of the Company
or any Subsidiary or Affiliate. 
  

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 2.8 “Enrollment Agreement” means an agreement between the Company and an employee, in such form
as may be established by the Company from time to time, pursuant to which the employee elects to participate in this Plan, or elects changes with respect to such participation as permitted under the Plan. 
  
 2.9 “ESPP Broker” means a stock brokerage or other entity
designated by the Company to establish accounts for stock purchased under the Plan by participants. 
  
 2.10 “Fair Market Value” means the closing bid price as reported on the National Association of Securities Dealers Automated Quotation National
Market System or the other primary trading market for the Company’s common stock. 
  
 2.11 “Offering Date” as used in this Plan shall be the commencement date of an offering. 
  
 2.12 “Participating Company” shall mean the Company and any Subsidiary or Affiliate that has been designated by the Committee to participate in
the Plan. For purposes of participation in the Statutory Plan, only the Company and its Subsidiaries may be Participating Companies, and the Committee shall designate from time to time which Subsidiaries will be Participating Companies in the
Statutory Plan. The Committee shall designate from time to time which Subsidiaries and Affiliates will be Participating Companies in particular Non-Statutory Plans provided, however, that at any given time, a Subsidiary that is a Participating
Company in the Statutory Plan will not be a Participating Company in a Non-Statutory Plan. The foregoing designations and changes in designation by the Committee shall not require shareholder approval. Notwithstanding the foregoing, the term
“Participating Company” shall not include any Subsidiary or Affiliate that offers its employees the opportunity to participate in an employee stock purchase plan covering such Subsidiary’s or Affiliate’s common stock. 

 
 2.13 “Plan” means this Microsoft Corporation 2003 Employee Stock
Purchase Plan. 
  
 2.14 “Purchase Price” shall be the
price per share of common stock of the Company as established pursuant to Section 5 hereof. 
  
 2.15 “Subsidiary” shall mean any corporation (other than the Company), domestic or foreign, that is in an unbroken chain of corporations beginning with Company if, on an Offering Date, each of the
corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in the chain, as described in Code section 424(f).

  
 3. Employees Eligible to Participate.  Any
employee of a Participating Company who is in the employ of any Participating Company on the last business day preceding the Offering Date for an offering is eligible to participate in that offering, except employees whose customary employment is
for not more than five months in any calendar year. 
  

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 4. Offerings.  Subject to the right of the Company in its sole discretion to sooner
terminate the Plan or to change the commencement date or term of any offering, commencing July 1, 2004 the Plan will operate with separate consecutive three-month offerings with the following Offering Dates: July 1, October 1, January 1 and April 1.
Unless a termination of or change to the Plan has previously been made by the Company, the final offering under this Plan shall commence on October 1, 2012 and terminate on December 31, 2012. In order to become eligible to purchase shares, an
employee must complete and submit an Enrollment Agreement and any other necessary documents before the Offering Date of the particular offering in which she wishes to participate. Participation in one offering under the Plan shall neither limit, nor
require, participation in any other offering. 
  
 5.
Price.  The Purchase Price per share shall be ninety percent (90%) of the Fair Market Value of the stock on the last regular business day of the offering. 
  
 6. Number of Shares to be Offered.  The maximum number of shares that will be offered under the Plan is two
hundred million (200,000,000) shares, subject to adjustment as permitted under Section 20. These two hundred million (200,000,000) shares include shares that were available but not used under the prior version of this Plan (i.e., the Microsoft
Corporation 1997 Employee Stock Purchase Plan) as well as additional shares that were made available for issuance for the first time as part of the amendment and restatement of the Plan approved by the Board on August 22, 2002 and by the
Shareholders on November 5, 2002. The shares to be sold to participants under the Plan will be common stock of the Company. If the total number of shares for which options are to be granted on any date in accordance with Section 12 exceeds the
number of shares then available under the Plan or a given sub-plan (after deduction of all shares for which options have been exercised or are then outstanding), the Company shall make a pro rata allocation of the shares remaining available in as
nearly a uniform manner as shall be practicable and as it shall determine to be equitable. In such event, the payroll deductions to be made pursuant to the authorizations therefor shall be reduced accordingly and the Company shall give written
notice of such reduction to each employee affected thereby. 
  
 7.
Participation. 
  
 7.1 An eligible employee may become a
participant by completing an Enrollment Agreement provided by the Company and submitting it to the Company, or with such other entity designated by the Company for this purpose, prior to the commencement of the offering to which it relates. The
Enrollment Agreement may be completed at any time after the employee becomes eligible to participate in the Plan, and will be effective as of the Offering Date next following the receipt of a properly completed Enrollment Agreement by the Company
(or the Company’s designee for this purpose). 
  

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 7.2 Payroll deductions for a participant shall commence on the Offering Date as described above and shall
continue through subsequent offerings pursuant to Section 10 until the participant’s termination of employment, subject to modification by the employee as provided in Section 8.1 and unless participation is earlier withdrawn or suspended by the
employee as provided in Section 9. 
  
 7.3 Payroll deduction shall
be the sole means of accumulating funds in a participant’s Account, except in foreign countries where payroll deductions are not allowed, in which case the Company may authorize alternative payment methods. 
  
 7.4 The Company may require current participants to complete a new Enrollment
Agreement at any time it deems necessary or desirable to facilitate Plan administration or for any other reason. 
  
 8. Payroll Deductions. 
  
 8.1 At the time an employee files his authorization for a payroll deduction, he shall elect to have deductions made from his Compensation on each payday
during the time he is a participant in an offering at any non-fractional percentage rate from 1% to 15%. A participant may change his payroll deduction percentage election, including changing the payroll deduction percentage to zero, effective as of
any Offering Date by filing a revised authorization, provided the revised authorization is filed prior to such Offering Date. 
  
 8.2 All payroll deductions made for a participant shall be credited to her Account under the Plan. A participant may not make any separate cash payment
into such Account nor may payment for shares be made other than by payroll deduction, except as provided under Section 7.3 above. 
  
 8.3 A participant may withdraw from or suspend his participation in the Plan as provided in Section 9, but no other change can be made during an offering
with respect to that offering. A participant may also make a prospective election, by changing his payroll deduction percentage to zero as set forth in Section 8.1, to cease participation in the Plan effective as of the next Offering Date. Other
changes permitted under the Plan may only be made with respect to an offering that has not yet commenced. 
  
 9. Withdrawal and Suspension. 
  
 9.1 An employee may withdraw from an offering, in whole but not in part, at any time prior to the first day of the last calendar month of such offering by
submitting a Withdrawal Notice to the Company, in which event the Company will refund the entire balance of her deductions as soon as practicable thereafter. 
  

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 9.2 An employee may, at any time prior to the first day of the last calendar month of an offering, reduce
to zero the percentage by which he has elected to have his Compensation reduced, thereby suspending participation in the Plan. Such reduction will be effective as soon as administratively feasible after receipt of the participant’s election.
Shares shall be purchased in accordance with Section 13 based on the amounts accumulated in the participant’s Account prior to the suspension of payroll deductions. 
  
 9.3 If an employee withdraws or suspends her participation pursuant to Sections 9.1 or 9.2 above, she shall not participate
in a subsequent offering unless and until she re-enters the Plan. To re-enter the Plan, an employee who has previously withdrawn or suspended participation by reducing payroll deductions to zero must file a new Enrollment Agreement in accordance
with Section 7.1. The employee’s re-entry into the Plan will not become effective before the beginning of the next offering following her withdrawal or suspension, and if the employee is an officer of the Company within the meaning of Section
16 of the Securities Exchange Act of 1934, she may not re-enter the Plan before the beginning of the second offering following her withdrawal. 
  
 10. Automatic Re-Enrollment.  At the termination of each offering each participating employee who continues to be eligible to participate
pursuant to Section 3 shall be automatically re-enrolled in the next offering, unless the employee has advised the Company otherwise. Upon termination of the Plan, any balance in each employee’s Account shall be refunded to him. 
  
 11. Interest.  No interest will be paid or allowed on any
money in the Accounts of participating employees, except to the extent payment of interest on such amount is required by the laws of any applicable jurisdiction. 
  
 12. Granting of Option.  On each Offering Date, this Plan shall be deemed to have granted to the
participant an option for as many shares (which may include a fractional share) as she will be able to purchase with the amounts credited to her Account during her participation in that offering. Notwithstanding the foregoing, no participant may
purchase more than 2,000 shares of stock during any single offering. This number may be adjusted as permitted pursuant to Section 20 of the Plan. 
  
 13. Exercise of Option.  Each employee who continues to be a participant in an offering on the last business day of that offering shall
be deemed to have exercised his option on such date and shall be deemed to have purchased from the Company such number of shares (which may include a fractional share) of common stock reserved for the purpose of the Plan as his accumulated payroll
deductions on such date will pay for at the Purchase Price. 
  
 14. Tax Obligations.  To the extent any (i) grant of an option to purchase shares hereunder, (ii) purchase of shares hereunder, or (iii) disposition of shares purchased hereunder gives rise to any tax withholding obligation
(including, without 

  

 7 

 
limitation, income and payroll withholding taxes imposed by any jurisdiction) the Committee may implement appropriate procedures to ensure that such tax
withholding obligations are met. Such procedures may include, without limitation, increased withholding from an employee’s current compensation, cash payments to the Company or another Participating Company by an employee, or a sale of a
portion of the stock purchased under the Plan, which sale may be required and initiated by the Company. Any such procedure, including offering choices among procedures, will be applied consistently with respect to all similarly situated employees
participating in the Plan (or in an offering under the Plan), except to the extent any procedure may not be permitted under the laws of the applicable jurisdiction. 
  
 15. Employee’s Rights as a Shareholder.   No participating employee shall have any right as a
shareholder with respect to any shares until the shares have been purchased in accordance with Section 13 above and the stock has been issued by the Company. 
  
 16. Evidence of Stock Ownership. 
  
 16.1 Following the end of each offering, the number of shares of common stock purchased by each participant shall be deposited into an account established
in the participant’s name at the ESPP Broker. 
  
 16.2 A
participant shall be free to undertake a disposition (as that term is defined in Section 424(c) of the Code) of the shares in her account at any time, whether by sale, exchange, gift, or other transfer of legal title, but in the absence of such a
disposition of the shares, the shares must remain in the participant’s account at the ESPP Broker until the holding period set forth in Section 423(a) of the Code has been satisfied. With respect to shares for which the Section 423(a) holding
period has been satisfied, the participant may move those shares to another brokerage account of participant’s choosing or request that a stock certificate be issued and delivered to her. 
  
 16.3 Notwithstanding the above, a participant who is not subject to income
taxation under the Code may move his shares to another brokerage account of his choosing or request that a stock certificate be issued and delivered to him at any time, without regard to the satisfaction of the Section 423(a) holding period.

  
 17. Rights Not Transferable.   No employee
shall be permitted to sell, assign, transfer, pledge, or otherwise dispose of or encumber either the payroll deductions credited to her Account or an option or any rights with regard to the exercise of an option or rights to receive shares under the
Plan other than by will or the laws of descent and distribution, and such right and interest shall not be liable for, or subject to, the debts, contracts, or liabilities of the employee. If any such action is taken by the employee, or any claim is
asserted by any other party in respect of such right and interest whether by garnishment, levy, attachment or otherwise, such action or claim will be treated as an election to withdraw funds in accordance with Section 9. During the employee’s
lifetime, only the employee can make decisions regarding the participation in or withdrawal from an offering under the Plan. 
  

 8 

 18. Termination of Employment.   Upon termination of employment for any reason
whatsoever, including but not limited to death or retirement, the balance in the Account of a participating employee shall be paid to the employee or his estate. Whether and when employment shall be deemed terminated for purposes of this Plan shall
be determined by the Committee in its sole discretion and may be determined without regard to statutory notice periods or other periods following termination of active employment. 
  
 19. Amendment or Discontinuance of the Plan.   The Committee shall have the right at any time and without
notice to amend or modify the Plan except to the extent the Board has reserved such authority to itself with respect to any aspect of the Plan, and the Board shall have the right at any time and without notice to amend, modify or terminate the Plan;
provided, that no employee’s existing rights under any offering already made under Section 4 hereof may be adversely affected thereby, and provided further that no such amendment of the Plan shall, except as provided in Section 20,
increase above two hundred million (200,000,000) shares the total number of shares to be offered unless shareholder approval is obtained therefor. 
  
 20. Changes in Capitalization.   In the event of reorganization, recapitalization, stock split, stock dividend, combination of shares,
merger, consolidation, offerings of rights, or any other change in the structure of the common shares of the Company, the Committee may make such adjustment, if any, as it may deem appropriate in the number, kind, and the price of shares available
for purchase under the Plan, and in the number of shares which an employee is entitled to purchase including, without limitation, closing an offering early and permitting purchase on the last business day of such reduced offering period, or
terminating an offering and refunding participants’ Account balances. 
  
 21. Share Ownership.   Notwithstanding anything herein to the contrary, no employee shall be permitted to subscribe for any shares under the Plan if such employee, immediately after such subscription,
owns shares (including all shares which may be purchased under outstanding subscriptions under the Plan) possessing 5% or more of the total combined voting power or value of all classes of shares of the Company or of its parent or subsidiary
corporations. For the foregoing purposes the rules of Section 424(d) of the Code shall apply in determining share ownership, and shares which the employee may purchase under outstanding options shall be treated as owned by the employee. In addition,
no employee shall be allowed to subscribe for any shares under the Plan which permits his rights to purchase shares under all “employee stock purchase plans” of the Company and its parent or subsidiary corporations to accrue at a rate
which exceeds $25,000 of Fair Market Value of such shares (determined at the time such right to subscribe is granted) for each calendar year in which such right to subscribe is outstanding at any time. Notwithstanding the above, lower limitations
may be imposed with respect to participants in a Non-Statutory Plan or participants in the Statutory Plan who are subject to laws of a foreign jurisdiction where lower limitations are required. 
  

 9 

 22. Administration and Board Authority. 
  
 22.1 The Plan shall be administered by the Board. The Board may delegate any
or all of its authority and obligations under this Plan to such committee or committees (including without limitation, a committee of the Board) or officer(s) of the Company as it may designate. Notwithstanding any such delegation of authority, the
Board may itself take any action under the Plan in its discretion at any time, and any reference in this Plan document to the rights and obligations of the Committee shall be construed to apply equally to the Board. Any references to the Board mean
only the Board. The authority that may be delegated by the Board includes, without limitation, the authority to (i) establish Non-Statutory Plans and determine the terms of such sub-plans, (ii) designate from time to time which Subsidiaries will
participate in the Statutory Plan, which Subsidiaries and Affiliates will be Participating Companies, and which Participating Companies will participate in a particular Non-Statutory Plan, (iii) determine procedures for eligible employees to enroll
in or withdraw from a sub-plan, setting or changing payroll deduction percentages, and obtaining necessary tax withholdings, (iv) allocate the available shares under the Plan to the sub-plans for particular offerings, and (v) adopt amendments to the
Plan or any sub-plan including, without limitation, amendments to increase the shares available for issuance under the Plan pursuant to Section 20 (but not including increases in the available shares above the maximum permitted by Sections 6 and 20
which shall require Board and shareholder approval). 
  
 22.2 The
Committee shall be vested with full authority and discretion to construe the terms of the Plan and make factual determinations under the Plan, and to make, administer, and interpret such rules and regulations as it deems necessary to administer the
Plan, and any determination, decision, or action of the Committee in connection with the construction, interpretation, administration, or application of the Plan shall be final, conclusive, and binding upon all participants and any and all persons
claiming under or through any participant. The Committee may retain outside entities and professionals to assist in the administration of the Plan including, without limitation, a vendor or vendors to perform enrollment and brokerage services. The
authority of the Committee will specifically include, without limitation, the power to make any changes to the Plan with respect to the participation of employees of any Subsidiary or Affiliate that is organized under the laws of a country other
than the United States of America when the Committee deems such changes to be necessary or appropriate to achieve a desired tax treatment in such foreign jurisdiction or to comply with the laws applicable to such non-U.S. Subsidiaries or Affiliates.
Such changes may include, without limitation, the exclusion of particular Subsidiaries or Affiliates from participation in the plan; modifications to eligibility criteria, maximum number or value of shares that may be purchased in a given period, or
other requirements set forth herein; and procedural or administrative modifications. Any modification relating to offerings to a particular Participating Company will apply only to such Participating Company, and 

  

 10 

 
will apply equally to all similarly situated employees of such Participating Company. The rights and privileges of all employees granted options under the
Statutory Plan shall be the same. To the extent any changes approved by the Committee would jeopardize the tax-qualified status of the Statutory Plan, such change shall cause the Participating Companies affected thereby to be considered to be
Participating Companies under a Non-Statutory Plan or Non-Statutory Plans instead of the Statutory Plan. 
  
 23. Notices.   All notices or other communications by a participant to the Company or other entity designated for a particular purpose
under or in connection with the Plan shall be deemed to have been duly given when received by the Company or other designated entity, or when received in the form specified by the Company at the location, or by the person, designated by the Company
for the receipt thereof. 
  
 24. Termination of the
Plan.   This Plan shall terminate at the earliest of the following: 
  
 24.1 December 31, 2012; 
  
 24.2
The date of the filing of a Statement of Intent to Dissolve by the Company or the effective date of a merger or consolidation wherein the Company is not to be the surviving corporation, which merger or consolidation is not between or among
corporations related to the Company. Prior to the occurrence of either of such events, on such date as the Company may determine, the Company may permit a participating employee to exercise the option to purchase shares for as many shares as the
balance of her Account will allow at the price set forth in accordance with Section 5. If the employee elects to purchase shares, any remaining balance of her Account will be refunded to her after such purchase. 
  
 24.3 The date the Board acts to terminate the Plan in accordance with Section
19 above. 
  
 24.4 The date when all shares reserved under the
Plan have been purchased. 
  
 25. Limitations on Sale of Stock
Purchased Under the Plan.   The Plan is intended to provide common stock for investment and not for resale. The Company does not, however, intend to restrict or influence any employee in the conduct of his own affairs. An employee,
therefore, may sell stock purchased under the Plan at any time he chooses, subject to compliance with any applicable Federal, state or foreign securities laws. THE EMPLOYEE ASSUMES THE RISK OF ANY MARKET FLUCTUATIONS IN THE PRICE OF THE STOCK.

  
 26. Governmental Regulation.   The
Company’s obligation to sell and deliver shares of the Company’s common stock under this Plan is subject to the approval of any governmental authority required in connection with the authorization, issuance, or sale of such shares.

  

 11 

 27. No Employment/Service Rights.   Nothing in the Plan shall confer upon any employee
the right to continue in employment for any period of specific duration, nor interfere with or otherwise restrict in any way the rights of the Company (or any Subsidiary or Affiliate employing such person), or of any employee, which rights are
hereby expressly reserved by each, to terminate such person’s employment at any time for any reason, with or without cause. 
  
 28. Dates and Times.   All references in the Plan to a date or time are intended to refer to dates and times determined pursuant to U.S.
Pacific Time. Business days for purposes of the Plan are U.S. business days. 
  
 29. Masculine and Feminine, Singular and Plural.   Whenever used herein, a pronoun shall include the opposite gender and the singular shall include the plural, and the plural shall include the
singular, whenever the context shall plainly so require. 
  
 * All share numbers
in the Plan reflect the 2-for-1 stock split effected February 2003. 
  

 12

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