Document:

Replacement Capital Covenant

 Exhibit 4.2 
 Replacement Capital Covenant, dated as of May 29, 2007 (this “Replacement Capital Covenant”), by StanCorp Financial Group, Inc., an Oregon corporation (together with its successors and assigns,
the “Corporation”), in favor of and for the benefit of each Covered Debtholder (as defined below). 
 Recitals

 A. On the date hereof, the Corporation is issuing $300,000,000 aggregate
principal amount of its Fixed-to-Floating Rate Income Capital Obligation Notes®
(“ICONs”) due 2067. 
 B. This Replacement Capital Covenant is the “Replacement Capital Covenant” referred
to in the Prospectus Supplement, dated May 23, 2007 and filed May 24, 2007, relating to the ICONs (together with the accompanying Prospectus, dated July 23, 2002, the “Prospectus”). 
 C. The Corporation, in entering into and disclosing the content of this Replacement Capital Covenant in the manner provided below, is doing so with the
intent that the covenants provided for in this Replacement Capital Covenant be enforceable by each Covered Debtholder and that the Corporation be estopped from disregarding the covenants in this Replacement Capital Covenant, in each case to the
fullest extent permitted by applicable law. 
 D. The Corporation acknowledges that reliance by each Covered Debtholder upon the covenants in
this Replacement Capital Covenant is reasonable and foreseeable by the Corporation and that, were the Corporation to disregard its covenants in this Replacement Capital Covenant, each Covered Debtholder would have sustained an injury as a result of
its reliance on such covenants. 
 NOW, THEREFORE, the Corporation hereby covenants and agrees as follows in favor of and for the benefit of
each Covered Debtholder. 
 Section 1. Definitions. Capitalized terms used in this Replacement Capital Covenant (including the
Recitals) have the respective meanings set forth in Schedule I hereto. 
 Section 2. Limitations on Repayment, Redemption and
Purchase of Securities. The Corporation hereby promises and covenants to and for the benefit of each Covered Debtholder that neither the Corporation nor any Subsidiary of the Corporation shall repay, redeem or purchase (for the avoidance of
doubt, any reference in this Replacement Capital Covenant to any repayment of the Corporation’s securities will be deemed to include a reference to defeasance of the Corporation’s obligations under the securities) any of the ICONs prior to
the Termination Date, except to the extent that the applicable repayment, redemption or purchase price does not exceed the sum of the following amounts: 
 (i) The Applicable Percentage of the aggregate amount of net cash proceeds received by the Corporation and its Subsidiaries since the most recent Measurement Date (without double counting proceeds received in any
prior Measurement Period and previously applied pursuant to this Section 2) from the issuance and sale of Common Stock and rights to acquire Common Stock to Persons other than the Corporation and its Subsidiaries; plus 
  

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 (ii) The Applicable Percentage of the aggregate amount of net cash proceeds received by
the Corporation and its Subsidiaries since the most recent Measurement Date (without double counting proceeds received in any prior Measurement Period and previously applied pursuant to this Section 2) from the sale of Mandatorily Convertible
Preferred Stock, Debt Exchangeable for Equity or Qualifying Non-Cumulative Perpetual Preferred Stock to Persons other than the Corporation and its Subsidiaries; plus 
 (iii) The Applicable Percentage of the aggregate amount of net cash proceeds received by the Corporation and its Subsidiaries since the
most recent Measurement Date (without double counting proceeds received in any prior Measurement Period and previously applied pursuant to this Section 2) from the sale of Qualifying Capital Securities to Persons other than the Corporation and
its Subsidiaries. 
 Section 3. Covered Debt. 
 (a) The Corporation represents and warrants that the Initial Covered Debt is Eligible Debt. 
 (b) On or
during the 30-day period immediately preceding any Redesignation Date with respect to the Covered Debt then in effect, the Corporation shall identify the series of Eligible Debt that will become the Covered Debt on and after such Redesignation Date
in accordance with the following procedures: 
 (i) the Corporation shall identify each series of its then outstanding
long-term indebtedness for money borrowed that is Eligible Debt; 
 (ii) if only one series of the Corporation’s then
outstanding long-term indebtedness for money borrowed is Eligible Debt, such series shall become the Covered Debt commencing on the related Redesignation Date; 
 (iii) if the Corporation has more than one outstanding series of long-term indebtedness for money borrowed that is Eligible Debt, then the
Corporation shall identify the series that has the latest stated financial maturity date as of the date the Corporation is applying the procedures in this Section 3(b) and such series shall become the Covered Debt on the related Redesignation
Date; 
 (iv) the series of outstanding long-term indebtedness for money borrowed that is determined to be Covered Debt
pursuant to this Section 3(b) shall be the Covered Debt for purposes of this Replacement Capital Covenant for the period commencing on the related Redesignation Date and continuing to but not including the Redesignation Date as of which a new
series of outstanding long-term indebtedness is next determined to be the Covered Debt pursuant to the procedures set forth in this Section 3(b); and 
  

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 (v) in connection with such identification of a new series of Covered Debt, the
Corporation shall give the notice provided for in Section 3(d) within the time frame provided for in such section. 
 (c)
Notwithstanding any other provisions of this Replacement Capital Covenant, if on any Redesignation Date the Corporation has then outstanding one or more series of Eligible Subordinated Debt, a series of Eligible Subordinated Debt shall be identified
as Covered Debt in accordance with Section 3(b) and no Eligible Senior Debt shall then be Covered Debt. 
 (d) Notice. In order
to give effect to the intent of the Corporation described in Recital C, the Corporation covenants that 
 (i) simultaneously
with the execution of this Replacement Capital Covenant or as soon as practicable after the date hereof, the Corporation shall (A) give notice to the Holders of the Initial Covered Debt, in the manner provided in the indenture relating to the
Initial Covered Debt, of this Replacement Capital Covenant and the rights granted to such Holders hereunder and (B) file a copy of this Replacement Capital Covenant with the Commission as an exhibit to a current report on Form 8-K under the
Securities Exchange Act; 
 (ii) so long as the Corporation is a reporting company under the Securities Exchange Act, the
Corporation shall include in each annual report filed with the Commission on Form 10-K under the Securities Exchange Act a description of the covenant set forth in Section 2 and identify the series of long-term indebtedness for borrowed money
that is Covered Debt as of the date such Form 10-K is filed with the Commission; 
 (iii) if a series of the
Corporation’s long-term indebtedness for money borrowed (A) becomes Covered Debt or (B) ceases to be Covered Debt, the Corporation shall give notice of such occurrence within 30 days to the holders of such long-term indebtedness for
money borrowed in the manner provided for in the indenture, fiscal agency agreement or other instrument under which such long-term indebtedness for money borrowed was issued and report such change in a current report on Form 8-K including or
incorporating by reference this Replacement Capital Covenant, and in the Corporation’s next quarterly report on Form 10-Q or annual report on Form 10-K, as applicable; 
 (iv) if, and only if, the Corporation ceases to be a reporting company under the Securities Exchange Act, the Corporation shall
(A) to the extent permitted by Bloomberg and any other similar third-party vendor that makes available to the marketplace information with respect to securities that are Covered Debt by posting such information on an electronically accessible
screen (each an “Investor Screen”), cause a notation to be included on each such Investor Screen identifying the relevant series of indebtedness of the Corporation or a Subsidiary of the Corporation that is Covered Debt from time to time
as Covered Debt for purposes of this Replacement Capital Covenant and cause a hyperlink to 

  

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a definitive copy of this Replacement Capital Covenant to be included on each such Investor Screen for each series of Covered Debt (but only so long as such
series is Covered Debt), and (B) post on its website, the information otherwise required to be included in Securities Exchange Act filings pursuant to clauses (ii) and (iii) of this Section 3(d); and 
 (v) promptly upon request by any Holder of Covered Debt, the Corporation shall provide such Holder with a conformed copy of this
Replacement Capital Covenant. 
 (e) The Corporation agrees that, if at any time the Covered Debt is held by a trust (for example, where the
Covered Debt is part of an issuance of trust preferred securities), a holder of the securities issued by such trust may enforce (including by instituting legal proceedings) this Replacement Capital Covenant directly against the Corporation as though
such holder owned Covered Debt directly, and such trust securities shall be deemed to be “Covered Debt” for purposes of this Replacement Capital Covenant for so long as the indebtedness held by such trust remains Covered Debt hereunder.

 Section 4. Termination, Amendment and Waiver. 
 (a) The obligations of the Corporation pursuant to this Replacement Capital Covenant shall remain in full force and effect until the earlier date (the “Termination Date”) to occur of (i) the
date, if any, on which the Holders of a majority by principal amount of the then-effective series of Covered Debt consent or agree in writing to the termination of this Replacement Capital Covenant and the obligations of the Corporation hereunder,
(ii) the date on which the Corporation ceases to have any series of outstanding Eligible Senior Debt or Eligible Subordinated Debt (in each case without giving effect to the rating requirement in clause (ii) of the definition of each such
term), and (iii) June 1, 2047 or, if earlier, when all of the ICONs have been paid, redeemed or purchased in full in compliance with this Replacement Capital Covenant. From and after the Termination Date, the obligations of the Corporation
pursuant to this Replacement Capital Covenant shall be of no further force or effect. 
 (b) This Replacement Capital Covenant may be amended
or supplemented from time to time by a written instrument signed by the Corporation with the consent of the Holders of at least a majority in principal amount of the then-effective series of Covered Debt, provided that this Replacement Capital
Covenant may be amended or supplemented from time to time by a written instrument signed only by the Corporation (and without the consent of the Holders of the then-effective series of Covered Debt) if (i) the effect of such amendment or
supplement is solely to impose additional restrictions on the ability of the Corporation or any Subsidiary of the Corporation to repay, redeem or purchase any Securities in any circumstance, (ii) such amendment or supplement is not adverse to
the Holders of the then-effective series of Covered Debt and an officer of the Corporation has delivered, or caused to be delivered, to the Holders of the then-effective series of Covered Debt in the manner provided for in the indenture, fiscal
agency agreement or other instrument with respect to such Covered Debt a written certificate stating that, in his or her determination, such amendment or supplement is not adverse to the Holders of the then-effective series of Covered Debt, or
(iii) such amendment or supplement eliminates Common Stock or Mandatorily Convertible Preferred Stock as a security 

  

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or securities covered by clause (i) or (ii) of Section 2 and the Corporation has been advised in writing by a nationally recognized
independent accounting firm that there is more than an insubstantial risk that the failure to do so would result in a reduction in the Corporation’s earnings per share as calculated for financial reporting purposes. 
 (c) For purposes of Sections 4(a) and 4(b), the Holders whose consent or agreement is required to terminate, amend or supplement the obligations of the
Corporation under this Replacement Capital Covenant shall be the Holders of the then-effective series of Covered Debt as of a record date established by the Corporation that is not more than 30 days prior to the date on which the Corporation
proposes that such termination, amendment or supplement becomes effective. 
 Section 5. Miscellaneous. 
 (a) This Replacement Capital Covenant shall be governed by and construed in accordance with the laws of the State of New York. 
 (b) This Replacement Capital Covenant shall be binding upon the Corporation and its successors and assigns and shall inure to the benefit of the Covered
Debtholders as they exist from time-to-time (it being understood and agreed by the Corporation that any Person who is a Covered Debtholder at the time such Person initiates a claim or proceeding to enforce its rights under this Replacement Capital
Covenant after the Corporation has violated its covenants in Section 2 and before the series of long-term indebtedness for money borrowed held by such Person is no longer Covered Debt, such Person’s rights under this Replacement Capital
Covenant shall not terminate prior to the Termination Date solely by reason of such series of long-term indebtedness for money borrowed no longer being Covered Debt). Except as specifically provided herein, this Replacement Capital Covenant shall
have no other beneficiaries and no other Persons are entitled to rely on this Replacement Capital Covenant. 
 (c) All demands, notices,
requests and other communications to the Corporation under this Replacement Capital Covenant shall be deemed to have been duly given and made if in writing and (i) if served by personal delivery upon the Corporation, on the day so delivered
(or, if such day is not a Business Day, the next succeeding Business Day), (ii) if delivered by registered post or certified mail, return receipt requested, or sent to the Corporation by a national or international courier service, on the date
of receipt by the Corporation (or, if such date of receipt is not a Business Day, the next succeeding Business Day), or (iii) if sent by telecopier, on the day telecopied, or if not a Business Day, the next succeeding Business Day, provided
that the telecopy is promptly confirmed by telephone confirmation thereof, and in each case to the Corporation at the address set forth below, or at such other address as the Corporation may thereafter notify the Covered Debtholders or post on its
website as the address for notices under this Replacement Capital Covenant: 
 StanCorp Financial Group 
 1100 S.W. Sixth Avenue 
 Portland, Oregon
97204 
 Attention: Chief Financial Officer 
 Facsimile No: (971) 321-7935 
  

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 IN WITNESS WHEREOF, the Corporation has caused this Replacement Capital Covenant to be executed by its
duly authorized officer, as of the day and year first above written. 
  

			
	 StanCorp Financial Group

		
	 By:
	 	  

	 Name:
	 	Cindy J. McPike
	 Title:
	 	 Senior Vice President and Chief
 Financial
Officer

  

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 SCHEDULE I 
 DEFINITIONS 
 “Alternative Payment Mechanism” means, with respect to any
securities or combination of securities (together in this definition, “such securities”), provisions in the related transaction documents requiring the Corporation to issue (or use commercially reasonable efforts to issue) one or more
types of APM Qualifying Securities raising eligible proceeds at least equal to the deferred Distributions on such securities and apply the proceeds to pay unpaid Distributions on such securities, commencing on the earlier of (x) the first
Distribution Date after commencement of a deferral period on which the Corporation pays current Distributions on such securities and (y) the fifth anniversary of the commencement of such deferral period, and that 
 (a) provide that “eligible proceeds” include, for purposes of such Alternative Payment Mechanism, the net proceeds (after underwriters’ or
placement agents’ fees, commissions or discounts and other expenses relating to the issuance or sale of the relevant securities, where applicable, and including the fair market value of property received by the Corporation or any of its
Subsidiaries as consideration for such securities) that the Corporation has received during the 180 days prior to the related Distribution Date from the issuance of APM Qualifying Securities, up to the Preferred Cap (as defined in paragraph (f),
below) in the case of APM Qualifying Securities that are Qualifying Non-Cumulative Perpetual Preferred Stock and/or Mandatorily Convertible Preferred Stock; 
 (b) permit the Corporation to pay current Distributions on any Distribution Date out of any source of funds but (x) require the Corporation to pay deferred Distributions only out of eligible proceeds and
(y) prohibit the Corporation from paying deferred Distributions out of any source of funds other than eligible proceeds, unless (if the Corporation elects to so provide in the terms of such securities) an Applicable Governmental Authority
directs otherwise; 
 (c) if deferral of Distributions continues for more than one year (unless the Corporation elects to provide for a
shorter period in the terms of such securities), require the Corporation or its Subsidiaries not to repay, redeem or repurchase any securities of the Corporation that on a bankruptcy or liquidation of the Corporation rank pari passu with or junior
to such APM Qualifying Securities until at least one year after all deferred Distributions have been paid; 
 (d) notwithstanding the
foregoing provision, if an Applicable Governmental Authority disapproves the issuer’s sale of APM Qualifying Securities, may (if the Corporation elects to so provide in the terms of such securities) permit the Corporation to pay deferred
Distributions from any source without a breach of its obligations under the transaction documents; 
 (e) if an Applicable Governmental
Authority does not disapprove the Corporation’s issuance and sale of APM Qualifying Securities but disapproves the use of the proceeds thereof to pay deferred Distributions, may (if the Corporation elects to so provide in the terms of such
securities) permit the Corporation to use such proceeds for other purposes and to continue to defer Distributions without a breach of its obligations under the transaction documents; and 
  

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 (f) with respect to “caps” on the Corporation’s obligation or right to issue (or use
commercially reasonable efforts to issue) APM Qualifying Securities to settle deferred Distributions: 
 (i) limit the
obligation of the Corporation to issue Common Stock or rights to acquire Common Stock pursuant to the Alternative Payment Mechanism (including at any point in time from all prior issuances thereof pursuant to the Alternative Payment Mechanism for
the relevant deferral period) to settle deferred Distributions attributable to the first five years of any deferral period to a number of shares not exceeding 2% of the total number of issued and outstanding shares of Common Stock as of the date of
the Corporation’s most recent publicly available consolidated financial statements (the “Common Cap”), provided (and it being understood) that (x) once the Corporation reaches the Common Cap, until the Common Cap ceases to
apply the Corporation will not be required to issue more Common Stock or rights to acquire Common Stock under the Alternative Payment Mechanism with respect to deferred Distributions attributable to the first five years of a deferral period even if
the amount referred to in this subclause (i) subsequently increases because of a subsequent increase in the current market price of Common Stock or the number of outstanding shares of Common Stock, and (y) the Common Cap shall cease to
apply to such deferral period by a date (as specified in the related transaction documents) which shall be not later than the ninth anniversary of the commencement of such deferral period; and 
 (ii) limit the obligation or right of the Corporation to issue Qualifying Non-Cumulative Perpetual Preferred Stock and Mandatorily
Convertible Preferred Stock pursuant to the Alternative Payment Mechanism (including at any point in time from all prior issuances thereof pursuant to such Alternative Payment Mechanism) to settle deferred Distributions to an amount not exceeding
25% of the initial principal or stated amount of the securities that are the subject of the related Alternative Payment Mechanism (the “Preferred Cap”); 
 provided (and it being understood) that: 
 (A) the Corporation shall not be obligated to
issue (or use commercially reasonable efforts to issue) APM Qualifying Securities for so long as a Market Disruption Event has occurred and is continuing; 
 (B) if, due to a Market Disruption Event or otherwise, the Corporation is able to raise and apply some, but not all, of the eligible proceeds necessary to pay all deferred Distributions on any Distribution Date, the
Corporation will apply any available eligible proceeds to pay accrued and unpaid Distributions on the applicable Distribution Date in chronological order subject to the Common Cap and Preferred Cap, as applicable; and 
  

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 (C) if the Corporation has outstanding more than one class or series of securities under
which it is obligated to sell a type of APM Qualifying Security and apply some part of the proceeds to the payment of deferred Distributions, then on any date and for any period the amount of net proceeds received by the Corporation from those sales
and available for payment of deferred Distributions on such securities shall be applied to such securities on a pro rata basis in proportion to the total amounts that are due on such securities, or (if the Corporation elects to so provide in the
terms of such securities) on such other basis as an Applicable Governmental Authority may approve. 
 “APM Qualifying
Securities” means, with respect to an Alternative Payment Mechanism, one or more of the following (as designated in the transaction documents for the Qualifying Capital Securities that include an Alternative Payment Mechanism, Debt
Exchangeable for Equity or Mandatory Trigger Provision): 
 (a) Common Stock; 
 (b) rights to acquire Common Stock; or 
 (c)
Qualifying Non-Cumulative Perpetual Preferred Stock and/or Mandatorily Convertible Preferred Stock; 
 provided (and it being understood) that if the APM
Qualifying Securities for any Alternative Payment Mechanism include both Common Stock and rights to acquire Common Stock, such Alternative Payment Mechanism may permit, but need not require, the Corporation to issue rights to acquire Common Stock.

 “Applicable Governmental Authority” means any regulatory body, administrative agency or governmental body having
jurisdiction over the Corporation or any Subsidiary thereof, including, without limitation, any insurance regulatory authority. 
 “Applicable Percentage” means 
 (a) in the case of any Common Stock or rights to acquire Common Stock,
(i) 133.33% with respect to any repayment, redemption or purchase prior to June 1, 2017 and (ii) 200% with respect to any repayment, redemption or purchase on or after June 1, 2017; and 
 (b) in the case of any Mandatorily Convertible Preferred Stock, Debt Exchangeable for Equity, Qualifying Non-Cumulative Perpetual Preferred Stock and
Qualifying Capital Securities, 100%. 
  

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 “Business Day” means each day other than (i) a Saturday or Sunday or (ii) a
day on which banking institutions in the City of New York are authorized or obligated by law, regulation or executive order to close. 
 “Commission” means the United States Securities and Exchange Commission. 
 “Common Stock” means
common stock of the Corporation (including treasury shares of common stock and shares of common stock issued pursuant to any dividend reinvestment plan and employee benefit plans of the Corporation). 
 “Corporation” has the meaning specified in the introduction to this instrument. 
 “Covered Debt” means (i) at the date of this Replacement Capital Covenant and continuing to but not including the first
Redesignation Date, the Initial Covered Debt and (ii) thereafter, commencing with each Redesignation Date and continuing to but not including the next succeeding Redesignation Date, the Eligible Debt identified pursuant to Section 3(b) as
the Covered Debt for such period. 
 “Covered Debtholder” means each Person (whether a Holder or a beneficial owner holding
through a participant in a clearing agency) that buys, holds or sells long-term indebtedness for money borrowed of the Corporation during the period that such long-term indebtedness for money borrowed is Covered Debt; provided that a Person who has
sold or disposed of all its right, title and interest in Covered Debt shall cease to be a Covered Debtholder at the time of such sale or disposition if, while such Person was an owner of Covered Debt, the Corporation has not breached or repudiated,
or threatened to breach or repudiate, its obligations hereunder; and provided further that if the Corporation has breached or repudiated, or threatened to breach or repudiate, its obligation hereunder while such Person was an owner of Covered
Debt, such Person shall continue to be a Covered Debtholder until the later of (i) one year after any such sale or other disposition or (ii) the termination of any legal proceeding brought by such Person before the date in clause
(i) to enforce the obligations of the Corporation hereunder. 
 “Debt Exchangeable For Equity” means a security or
combination of securities (together in this definition, “such securities”) that: 
 (a) gives the holder a beneficial interest in
(i) subordinated debt securities of the Corporation that include a provision permitting the Corporation to defer interest payments for up to seven years and that are the most junior subordinated debt of the Corporation (or rank pari passu with
the most junior subordinated debt of the Corporation) and (ii) a fractional interest in a stock purchase contract for a share of Qualifying Non-Cumulative Perpetual Preferred Stock (in this definition, “preferred stock” of the
Corporation); 
 (b) provides that the investors directly or indirectly grant to the Corporation a security interest in such subordinated
debt securities and their proceeds (including any substitute collateral permitted under the transaction documents) to secure the investors’ direct or indirect obligation to purchase preferred stock of the Corporation pursuant to such stock
purchase contracts; 
  

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 (c) includes a remarketing feature pursuant to which the subordinated debt of the Corporation is
remarketed to new investors commencing not later than the first Distribution Date that is at least five years after the date of issuance of the security or earlier in the event of an early settlement event based on (i) the capital ratios of the
Corporation as anticipated by any Applicable Governmental Authority, (ii) the dissolution of the issuer of such Debt Exchangeable for Equity, or (iii) one or more financial tests set forth in the terms of such securities or the forward
purchase contract or similar agreement; 
 (d) provides for the proceeds raised in the remarketing to be used to purchase preferred stock of
the Corporation under the stock purchase contracts and, if there has not been a successful remarketing by the first Distribution Date that is six years after the date of issuance of such securities, provides that the stock purchase contracts will be
settled by the Corporation foreclosing on its subordinated debt securities or other collateral directly or indirectly pledged by investors in the Debt Exchangeable for Equity; 
 (e) includes a replacement capital covenant substantially similar to this Replacement Capital Covenant or an Other Qualifying Replacement Capital
Covenant that will apply to such securities and to the preferred stock of the Corporation, but will not include Debt Exchangeable for Equity or debt exchangeable for common equity in the definition of “Qualifying Capital Securities”; and

 (f) after the issuance of such preferred stock of the Corporation, provides the holder of the security with a beneficial interest in such
preferred stock of the Corporation. 
 “Distribution Date” means, as to any securities or combination of securities, the
dates on which periodic Distributions on such securities are scheduled to be made. 
 “Distribution Period” means, as to any
securities or combination of securities, each period from and including the later of the issue date and a Distribution Date for such securities to but not including the next succeeding Distribution Date for such securities. 
 “Distributions” means, as to a security or combination of securities, dividends, interest payments or other income distributions to the
holders thereof that are not Subsidiaries of the Corporation. For the avoidance of doubt, if the terms of any security or combination of securities provide for the accrual of declared but unpaid, or deferred, Distributions, such accrued amounts will
be considered to be included within the term “Distributions”. 
 “Eligible Debt” means, at any time, Eligible
Subordinated Debt or, if no Eligible Subordinated Debt is then outstanding, Eligible Senior Debt. 
 “Eligible Senior Debt”
means, at any time in respect of any issuer, each series of outstanding long-term unsecured indebtedness for money borrowed of such issuer that (i) upon a bankruptcy, liquidation, dissolution or winding up of the issuer, ranks most senior among
the issuer’s then outstanding classes of unsecured indebtedness for money borrowed, (ii) is then assigned a rating by at least one NRSRO (provided that this clause shall apply on a Redesignation Date only if on such date the issuer has
outstanding senior long-term unsecured indebtedness for money borrowed that satisfies the requirements of clauses (i), (iii) and (iv) that is then assigned a rating by at least one NRSRO), (iii) has an outstanding aggregate principal

  

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amount of not less than $100,000,000 and (iv) was issued through or with the assistance of a commercial or investment banking firm or firms acting as
underwriters, initial purchasers or placement or distribution agents. For purposes of this definition as applied to securities with a CUSIP number, each issuance of long-term indebtedness for money borrowed that has (or, if such indebtedness is held
by a trust or other intermediate entity established directly or indirectly by the issuer, the securities of such intermediate entity have) a separate CUSIP number shall be deemed to be a series of the issuer’s long-term indebtedness for money
borrowed that is separate from each other series of such indebtedness. 
 “Eligible Subordinated Debt” means, at any time in
respect of any issuer, each series of the issuer’s then outstanding long-term unsecured indebtedness for money borrowed that (i) upon a bankruptcy, liquidation, dissolution or winding up of the issuer, ranks subordinate to the
issuer’s then outstanding series of unsecured indebtedness for money borrowed that ranks most senior, (ii) is then assigned a rating by at least one NRSRO (provided that this clause (ii) shall apply on a Redesignation Date only if on
such date the issuer has outstanding subordinated long-term unsecured indebtedness for money borrowed that satisfies the requirements in clauses (i), (iii) and (iv) that is then assigned a rating by at least one NRSRO), (iii) has an
outstanding aggregate principal amount of not less than $100,000,000, and (iv) was issued through or with the assistance of a commercial or investment banking firm or firms acting as underwriters, initial purchasers or placement or distribution
agents. For purposes of this definition as applied to securities with a CUSIP number, each issuance of long-term indebtedness for money borrowed that has (or, if such indebtedness is held by a trust or other intermediate entity established directly
or indirectly by the issuer, the securities of such intermediate entity have) a separate CUSIP number shall be deemed to be a series of the issuer’s long-term indebtedness for money borrowed that is separate from each other series of such
indebtedness. 
 “Holder” means, as to the Covered Debt then in effect, each holder of such Covered Debt as reflected on the
securities register maintained by or on behalf of the issuer with respect to such Covered Debt and each beneficial owner holding through a participant in a clearing agency. 
 “Initial Covered Debt” means the Corporation’s 6.875% Senior Notes due 2012 (CUSIP No. 852891 AA 8). 
 “Intent-Based Replacement Disclosure” means, as to any security or combination of securities that the issuer has publicly stated its
intention, either in the prospectus or other offering document under which such securities were initially offered for sale or in filings with the Commission made by the issuer under the Securities Exchange Act prior to or contemporaneously with the
issuance of such securities, that the issuer or its Subsidiary will repay, redeem or purchase such securities only with the proceeds of replacement capital securities that have terms and provisions at the time of repayment, redemption or purchase
that are as or more equity-like than the securities then being repaid, redeemed or purchased, raised since the most recent Measurement Date. 
 “Mandatorily Convertible Preferred Stock” means cumulative or non-cumulative preferred stock with (i) no prepayment obligation on the part of the issuer thereof, whether at the election of the holders or otherwise, and
(ii) a requirement that the preferred stock convert into Common Stock of the Corporation within three years from the date of its issuance at a conversion ratio within a range established at the time of issuance of the preferred stock.

  

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 “Mandatory Trigger Provision” means, as to any security or combination of securities
(together, in this definition, “securities”), provisions in the terms thereof or of the related transaction agreements that: 
 (a)
require or, at its option in the case of non-cumulative perpetual preferred stock, permit, the issuer of such securities to make payment of Distributions on such securities only pursuant to the issue and sale of APM Qualifying Securities, within no
more than two years of a failure by the issuer to satisfy one or more financial tests set forth in the terms of such securities or related transaction agreements, in an amount such that the net proceeds of such sale are at least equal to the amount
of unpaid Distributions on such securities (including without limitation all deferred and accumulated amounts) and in either case require the application of the net proceeds of such sale to pay such unpaid Distributions, provided that (i) the
aggregate amount of the net proceeds of Qualifying Non-Cumulative Perpetual Preferred Stock and Mandatorily Convertible Preferred Stock which the issuer may apply to pay such Distributions pursuant to such provision may not exceed the Preferred Cap,
and (ii) if the Mandatory Trigger Provision does not require the issuance and sale of Common Stock and/or rights to acquire Common Stock and the application of the net proceeds thereof to the payment of such Distributions within one year of
such failure, then the amount of the net proceeds of the issuance and sale of Common Stock and/or rights to acquire Common Stock which the issuer may apply to pay such Distributions pursuant to such provision may not exceed the Common Cap;

 (b) prohibit the issuer from repurchasing any securities ranking junior to or pari passu with the APM Qualifying Securities prior to the
date six months after the issuer applies the net proceeds of the sales described in clause (A) to pay such unpaid Distributions; 
 (c)
if the APM Qualifying Securities are rights to acquire Common Stock, prohibit the issuer from issuing such rights and using the proceeds therefrom to pay any unpaid Distributions if the total number of shares of the issuer’s Common Stock
underlying all rights issued as APM Qualifying Securities during the life of the security would be in excess of 15% of the total number of the issuer’s issued and outstanding shares of Common Stock as of the date of any proposed issuance of
rights as APM Qualifying Securities; 
 (d) upon any liquidation, dissolution, winding up, reorganization or in connection with any
insolvency, receivership or proceeding under any bankruptcy law with respect to the issuer, limit the claim of the holders of such securities (other than Qualifying Non-Cumulative Perpetual Preferred Stock) for Distributions that accumulate during a
period in which the issuer fails to satisfy one or more financial tests set forth in the terms of such securities or related transaction agreements to (x) 25% of the principal amount of such securities then outstanding in the case of securities
not permitting the issuance and sale pursuant to the provisions described in clause (A) above of securities other than Common Stock or rights to acquire Common Stock or (y) two years of accumulated and unpaid Distributions (including
compounded amounts thereon) in all other cases. No remedy other than Permitted Remedies will arise by the terms of such securities or related transaction agreements in favor of the holders of such securities as a result of the issuer’s failure
to pay Distributions because of the Mandatory 

  

 I-7 

 
Trigger Provision or as a result of the issuer’s exercise of its right under an Optional Deferral Provision until Distributions have been deferred for
one or more Distribution Periods that total together at least ten years; and 
 (e) if any deferral period lasts longer than one year, the
issuer will not repurchase, or permit its Subsidiaries to purchase, any of its securities that rank pari passu or junior to the APM Qualifying Securities for a one-year period following the date on which all deferred interest has been paid on the
securities. 
 “Market Disruption Event” means the occurrence or existence of any of the following events or sets of
circumstances: 
 (a) trading in securities generally on the New York Stock Exchange or any other national securities, futures or options
exchange or over-the-counter market on which the Corporation’s APM Qualifying Securities are then listed or traded shall have been suspended or the settlement of such trading activity generally shall have been materially disrupted or minimum
prices shall have been established on any such exchange or market by the Commission, by the relevant exchange or by another regulatory body or governmental authority having jurisdiction, and the establishment of such minimum prices materially
disrupts or otherwise has a material adverse effect on trading in, or the issuance and sale of, the Corporation’s APM Qualifying Securities; 
 (b) the Corporation would be required to obtain the consent or approval of its stockholders or a regulatory body (including, without limitation, any securities exchange) or governmental authority to issue or sell APM Qualifying Securities
and the Corporation fails to obtain that consent or approval notwithstanding the Corporation’s commercially reasonable efforts to obtain that consent or approval; 
 (c) a banking moratorium shall have been declared by the federal or state authorities of the United States such that market trading in APM Qualifying Securities has been materially disrupted; 
 (d) a material disruption shall have occurred in commercial banking or securities settlement or clearance services in the United States such that market
trading in APM Qualifying Securities has been materially disrupted; 
 (e) the United States shall have become engaged in hostilities, there
shall have been an escalation in hostilities involving the United States, there shall have been a declaration of a national emergency or war by the United States or there shall have occurred any other national or international calamity or crisis
which, in the case of any of the foregoing, has resulted in market trading in APM Qualifying Securities having been materially disrupted; 
 (f) there shall have occurred such a material adverse change in general domestic or international economic, political or financial conditions, including without limitation as a result of terrorist activities, such that market trading in APM
Qualifying Securities has been materially disrupted; 
  

 I-8 

 (g) an event occurs and is continuing as a result of which the offering document for such offer and sale
of APM Qualifying Securities would, in the Corporation’s reasonable judgment, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not
misleading and either (a) the disclosure of that event at such time, in the Corporation’s reasonable judgment, would have a material adverse effect on the Corporation’s business or (b) the disclosure relates to a previously
undisclosed proposed or pending material business transaction and the Corporation has a bona fide reason for keeping the same confidential or its disclosure would impede the Corporation’s ability to consummate such transaction, provided
that no single suspension period contemplated by this paragraph (g) may exceed 90 consecutive days and multiple suspension periods contemplated by this paragraph (g) may not exceed an aggregate of 180 days in any 360-day period; or

 (h) the Corporation reasonably believes that the offering document for the offer and sale of APM Qualifying Securities would not be in
compliance with a rule or regulation of the Commission and the Corporation is unable to comply with such rule or regulation or such compliance is unduly burdensome, provided that no single suspension period contemplated by this paragraph
(h) may exceed 90 consecutive days and multiple suspension periods contemplated by this paragraph (h) may not exceed an aggregate of 180 days in any 360-day period. 
 The definition of “Market Disruption Event” as used in any securities or combination of securities that constitute Qualifying Capital
Securities may include less than all of the paragraphs outlined above, as determined by the Corporation at the time of issuance of such securities, and in the case of clauses (a), (b), (c) and (d), as applicable to a circumstance where the
Corporation would otherwise endeavor to issue preferred stock, shall be limited to circumstances affecting markets where the Corporation’s preferred stock trades or where a listing for its trading is being sought. 
 “Measurement Date” means, with respect to any repayment, redemption or purchase of securities, the date six months prior to the delivery
of notice of such repayment, redemption or the date of such purchase. . 
 “Measurement Period” means the period from a
Measurement Date to the related notice date or purchase date. Measurement Periods cannot run concurrently. 
 “No Payment
Provision” means a provision or provisions in the transaction documents for securities (referred to in this definition as “such securities”) that include the following: 
 (a) an Alternative Payment Mechanism; and 
 (b) an Optional Deferral Provision modified and supplemented from the general definition of that term to provide that: 
 (i) the
issuer of such securities may, in its sole discretion, or (if the issuer elects to so provide in the terms of such securities) shall in response to a directive or order from any Applicable Governmental Authority, defer in whole or in part payment of
Distributions 

  

 I-9 

 
on such securities for one or more consecutive Distribution Periods of up to five years or, if a Market Disruption Event has occurred and is continuing, up
to a total of ten years, without any remedy other than Permitted Remedies and the obligations (and limitations on obligations) described in the definition of “Alternative Payment Mechanism” applying; and 
 (ii) if the issuer becomes subject to a bankruptcy, insolvency, receivership or similar proceeding prior to the redemption or repayment of such
securities, the holders of such securities will have no claim to any deferred and unpaid Distributions exceeding (x) if the APM Qualifying Securities include only Common Stock or rights to acquire Common Stock and do not include Qualifying
Non-Cumulative Perpetual Preferred Stock or Mandatorily Convertible Preferred Stock, 25% of the principal or stated amount of such securities then outstanding and (y) if the APM Qualifying Securities include Qualifying Non-Cumulative Perpetual
Preferred Stock or Mandatorily Convertible Preferred Stock, two years of Distributions on such securities; provided, however, that if the APM Qualifying Securities include Qualifying Non-Cumulative Perpetual Preferred Stock or Mandatorily
Convertible Preferred Stock and, accordingly, clause (y) applies, holders of such securities may, at the issuer’s option, have an additional preferred equity claim in respect of deferred and unpaid distributions which are in excess of two
years of Distributions that is senior to the Corporation’s Common Stock and is or would be pari passu with any Qualifying Non-Cumulative Preferred Stock or Mandatorily Convertible Preferred Stock up to the amount equal to their pro rata shares
of any unused portion of the Preferred Cap (as defined in the definition of “Alternative Payment Mechanism”). 
 “Non-Cumulative” means, with respect to any securities, that the issuer thereof may elect not to make any number of periodic Distributions or interest payments without any remedy arising under the terms of the securities or
related agreements in favor of the holders, other than one or more Permitted Remedies. 
 “NRSRO” means a nationally
recognized statistical rating organization within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Securities Exchange Act. 
 “Optional Deferral Provision” means, as to any security or combination of securities, a provision in the terms thereof or of the related transaction agreements to the effect of either (a) or (b) below: 

(a)(i) the issuer of such securities may, in its sole discretion, defer or skip in whole or in part payment of Distributions on such securities for one
or more Distribution Periods of up to five years or, if a Market Disruption Event is continuing, up to a total of ten years, without any remedy other than Permitted Remedies and (ii) if the issuer of such securities has exhausted its right to
defer Distributions and no Market Disruption Event is continuing, the issuer will be obligated to issue and sell Common Stock, rights to acquire Common Stock, Mandatorily Convertible Preferred Stock and/or Qualifying Non-Cumulative Perpetual
Preferred Stock in an amount such that the net proceeds of such sale equal or exceed the amount of unpaid Distributions on such securities (including without limitation all deferred and accumulated amounts) and to apply the net proceeds of such sale
to pay such unpaid Distributions in full or; 
  

 I-10 

 (b) the issuer of such securities may, in its sole discretion, defer or skip in whole or in part payment
of Distributions on such securities for one or more Distribution Periods for up to ten years, without any remedy other than Permitted Remedies. 
 “Other Qualifying Replacement Capital Covenant” means a replacement capital covenant, as identified by the Corporation’s Board of Directors reasonably interpreting the definitions of this Replacement Capital Covenant,
(i) entered into by a company that at the time it enters into such replacement capital covenant is a reporting company under the Securities Exchange Act and (ii) that restricts the related issuer and its subsidiaries from repaying,
redeeming or purchasing identified securities except out of the proceeds of specified replacement capital securities that have terms and provisions at the time of repayment, redemption or purchase that are as or more equity-like than the securities
then being repaid, redeemed or purchased, raised since the most recent Measurement Date (and with the Corporation being deemed to receive the applicable percentage of the proceeds actually received). 
 “Permitted Remedies” means, as to any security or combination of securities, one or more of the following remedies: 
 (a) rights in favor of the holders of such securities permitting such holders to elect one or more directors of the issuer (including any such rights
required by the listing requirements of any stock or securities exchange on which such securities may be listed or traded); and 
 (b)
complete or partial prohibitions on the issuer paying Distributions on or purchasing or redeeming Common Stock or other securities that rank pari passu with or junior as to Distributions to such securities for so long as Distributions on such
securities, including deferred Distributions, have not been paid in full or to such lesser extent as may be specified in the terms of such securities. 
 “Person” means any individual, corporation, partnership, joint venture, trust, limited liability company or corporation, unincorporated organization or government or any agency or political
subdivision thereof. 
 “Prospectus” has the meaning specified in Recital B. 
 “Qualifying Capital Securities” means securities (other than securities covered by paragraphs (i) and (ii) of Section 2)
that, in the determination of the Corporation’s Board of Directors or the relevant committee thereof reasonably interpreting the definitions and other terms of this Replacement Capital Covenant, meet one of the following criteria: 

(a) in connection with any repayment, redemption or purchase of ICONs on or prior to June 1, 2017: 
 (i) securities issued by the Corporation or its Subsidiaries that (1) rank pari passu with or junior to the ICONs upon the liquidation, dissolution
or winding up of the Corporation, (2) have no maturity or a maturity of at least 55 years and (3) either (x) are subject to a replacement capital covenant substantially similar to this Replacement Capital Covenant or an Other
Qualifying Replacement Capital Covenant and have either a No Payment Provision or 

  

 I-11 

 
are Non-Cumulative or (y) have a Mandatory Trigger Provision and are subject to Intent-Based Replacement Disclosure and have either an Optional Deferral
Provision or a No Payment Provision; or 
 (ii) preferred stock issued by the Corporation or its Subsidiaries that (1) is
Non-Cumulative, (2) has no prepayment obligation on the part of the issuer thereof, whether at the election of the holders or otherwise, (3) has no maturity or a maturity of at least 55 years and (4) either (x) is subject to a
replacement capital covenant substantially similar to this Replacement Capital Covenant or an Other Qualifying Replacement Capital Covenant or (y) has a Mandatory Trigger Provision and is subject to Intent-Based Replacement Disclosure; or

 (iii) securities issued by the Corporation or its Subsidiaries that (1) rank pari passu or junior to other preferred stock of the
issuer, (2) have no maturity or a maturity of at least 35 years, (3) are subject to a replacement capital covenant substantially similar to this Replacement Capital Covenant or an Other Qualifying Replacement Capital Covenant,
(4) have an Optional Deferral Provision and (5) have a Mandatory Trigger Provision; or 
 (b) in connection with any repayment,
redemption or purchase of ICONs at any time after June 1, 2017 but on or prior to June 1, 2037: 
 (i) securities described under
clause (a) of this definition; 
 (ii) securities issued by the Corporation or its Subsidiaries that (1) rank pari passu with or
junior to the ICONs upon a liquidation, dissolution or winding up of the Corporation, (2) have no maturity or a maturity of at least 55 years, (3) are subject to a replacement capital covenant substantially similar to this Replacement
Capital Covenant or an Other Qualifying Replacement Capital Covenant and (4) have an Optional Deferral Provision; 
 (iii) securities
issued by the Corporation or its Subsidiaries that (1) rank pari passu with or junior to the ICONs upon a liquidation, dissolution or winding up of the Corporation, (2) are Non-Cumulative or have a No Payment Provision and
(3) (x) have no maturity or a maturity of at least 55 years and (y) are subject to Intent-Based Replacement Disclosure; 
 (iv) securities issued by the Corporation or its Subsidiaries that (1) rank pari passu with or junior to the ICONs upon a liquidation, dissolution or winding up of the Corporation, (2) are Non-Cumulative or have a No Payment
Provision, (3) have no maturity or a maturity of at least 35 years and (4) are subject to a replacement capital covenant substantially similar to this Replacement Capital Covenant or an Other Qualifying Replacement Capital Covenant;

 (v) securities issued by the Corporation or its Subsidiaries that (1) rank pari passu with or junior to the ICONs upon a
liquidation, dissolution or winding up of the Corporation, (2) have an Optional Deferral Provision, (3) have a Mandatory Trigger Provision and (4) have no maturity or a maturity of at least 55 years; 
 (vi) cumulative preferred stock issued by the Corporation or its Subsidiaries that (1) has no prepayment obligation on the part of the issuer
thereof, whether at 

  

 I-12 

 
the election of the holders or otherwise, and (2) (x) has no maturity or a maturity of at least 55 years and (y) is subject to a replacement
capital covenant substantially similar to this Replacement Capital Covenant or an Other Qualifying Replacement Capital Covenant; or 
 (vii)
other securities issued by the Corporation or its Subsidiaries that (1) rank upon a liquidation, dissolution or winding-up of the Corporation either (x) pari passu with or junior to the ICONs or (y) pari passu with the claims of the
Corporation’s trade creditors and junior to all of the Corporation’s long-term indebtedness for money borrowed (other than the Corporation’s long-term indebtedness for money borrowed from time to time outstanding that by its terms
ranks pari passu with such securities on a liquidation, dissolution or winding-up of the Corporation), (2) have an Optional Deferral Provision or a No Payment Provision, (3) have a Mandatory Trigger Provision and (4) either
(x) have no maturity or a maturity of at least 35 years and Intent-Based Replacement Disclosure or (y) have no maturity or a maturity of at least 25 years and are subject to a replacement capital covenant substantially similar to this
Replacement Capital Covenant or an Other Qualifying Replacement Capital Covenant; or 
 (c) in connection with any repayment, redemption or
purchase of ICONs at any time after June 1, 2037: 
 (i) securities described under clause (b) of this definition; 
 (ii) preferred stock issued by the Corporation or its Subsidiaries that (1) (x) has no maturity or a maturity of at least 45 years and
(y) is subject to Intent-Based Replacement Disclosure and (2) is Non-Cumulative; 
 (iii) securities issued by the Corporation or
its Subsidiaries that (1) rank pari passu with or junior to the ICONs upon a liquidation, dissolution or winding up of the Corporation, (2) either (A) have no maturity or a maturity of at least 55 years and are subject to Intent-Based
Replacement Disclosure or (B) have no maturity or a maturity at least 25 years and are subject to a replacement capital covenant substantially similar to this Replacement Capital Covenant or an Other Qualifying Replacement Capital Covenant and
(3) are Non-Cumulative; 
 (iv) securities issued by the Corporation or its Subsidiaries that (1) rank pari passu with or junior
to the ICONs upon a liquidation, dissolution or winding up of the Corporation, (2) have an Optional Deferral Provision, (3) have a Mandatory Trigger Provision and (4) (x) have no maturity or a maturity at least 25 years and
(y) are subject to Intent-Based Replacement Disclosure; or 
 (v) cumulative preferred stock issued by the Corporation or its
Subsidiaries that either (1) (x) has no maturity or a maturity of at least 55 years and (y) are subject to Intent-Based Replacement Disclosure or (2) has a maturity of at least 35 years and is subject to a replacement capital
covenant substantially similar to this Replacement Capital Covenant or an Other Qualifying Replacement Capital Covenant. 
 “Qualifying Non-Cumulative Perpetual Preferred Stock” means preferred stock of the Corporation that (i) is Non-Cumulative, (ii) ranks pari passu with or junior to all other preferred stock of the Corporation,
(iii) is perpetual and (iv) is subject to either a replacement capital covenant substantially similar to this Replacement Capital Covenant or an Other 

  

 I-13 

 
Qualifying Replacement Capital Covenant or provides for mandatory deferral tied to the breach of certain financial tests and is subject to Intent-Based
Replacement Disclosure, and in each case as to which the transaction documents provide for no remedies as a consequence of non-payment of Distributions other than Permitted Remedies. 
 “Redesignation Date” means, as to the then-effective Covered Debt, the earliest of (i) the date that is two years prior to the
final maturity date of such Covered Debt, (ii) if the Corporation or any of its Subsidiaries elects to repay or redeem, or the Corporation or any of its Subsidiaries elects to purchase, such Covered Debt either in whole or in part with the
consequence that after giving effect to such repayment, redemption or repurchase the outstanding aggregate principal amount of such Covered Debt is less than $100,000,000, the applicable repayment, redemption or purchase date and (iii) if such
Covered Debt is not Eligible Subordinated Debt, the date on which the Corporation issues long-term indebtedness for money borrowed that is Eligible Subordinated Debt. 
 “Replacement Capital Covenant” has the meaning specified in the introduction to this instrument. 
 “Securities Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 “Subsidiary”
means, at any time, any Person the shares of stock or other ownership interests of which having ordinary voting power to elect a majority of the board of directors or other managers of such Person are at the time owned, or the management or policies
of which are otherwise at the time controlled, directly or indirectly through one or more intermediaries (including other Subsidiaries) or both, by another Person. 
 “Termination Date” has the meaning specified in Section 4(a). 
  

 I-141996 Stock Incentive Program, as amended and restated

 Exhibit 10.1 
 TRIQUINT SEMICONDUCTOR, INC. 
 1996 STOCK
INCENTIVE PROGRAM (1) 
 (AS AMENDED AND RESTATED EFFECTIVE FEBRUARY 2005) 
 1. Purposes of the Program. The purposes of this
Stock Incentive Program are to attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentive to the Employees, Consultants and certain Outside Directors of the Company and to promote the
success of the Company’s business. 
 The Program permits the grant of Incentive Stock Options, Nonstatutory Stock Options, Restricted
Stock, Restricted Stock Units, Stock Appreciation Rights, Performance Units, Performance Shares and other stock or cash awards at the discretion of the Administrator and as reflected in the terms of the Award Agreement. The Program also provides for
automatic grants of Nonstatutory Stock Options to Outside Directors who are neither representatives nor employees or stockholders owning more than one percent (1%) of the outstanding shares of the Company. 
 2. Definitions. As used herein, the following definitions shall apply: 
 (a) “ Administrator ” shall mean the Board or any of its Committees as shall be administering the Program, in
accordance with Section 4 of the Program. 
 (b) “ Annual Director Grant ” shall mean the Complete
Annual Director Grant and the Partial Annual Director Grant, collectively. 
 (c) “ Applicable Laws ”
means the requirements relating to the administration of equity plans under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the
applicable laws of any foreign country or jurisdiction where Awards are, or will be, granted under the Program. 
 (d) “ Award ” means, individually or collectively, a grant under the Program of Options, Restricted Stock, Restricted Stock Units, Stock Appreciation Rights, Performance Units, Performance Shares and other stock or
cash awards as the Administrator may determine. 
 (e) “ Award Agreement ” means the written or
electronic agreement setting forth the terms and provisions applicable to each Award granted under the Program including an Option Agreement. The Award Agreement is subject to the terms and conditions of the Program. 
 (f) “ Board ” shall mean the Board of Directors of the Company. 
 (g) “ Chairman Grant ” shall mean the automatic Option grant made to the Company’s Chairman of the Board
pursuant to Section 8(e). 
 (h) “ Code ” shall mean the Internal Revenue Code of 1986, as amended.

 (i) “ Committee ” shall mean a Committee appointed by the Board of Directors in accordance with
Section 4 of the Program. 
 (j) “ Common Stock ” shall mean the Common Stock of the Company.

 (k) “ Company ” shall mean TriQuint Semiconductor, Inc., a Delaware corporation. 

	 (1)
	 The 1996 Stock Incentive Program
has been amended and restated to reflect the proposed amendments approved by the Board of Directors in February 2005, which amendments are set forth in Proposal Two of the Proxy Statement for approval by the stockholders at the 2005 Annual Meeting.

  

 I-1 

 (l) “ Complete Annual Director Grant ” shall mean the automatic
Option grant made to the Outside Directors pursuant to Section 8(c). 
 (m) “ Consultant ” shall
mean any person who is engaged by the Company or any Parent or Subsidiary to render consulting services and is compensated for such consulting services; provided that the term Consultant shall not include directors who are not compensated for their
services; or are paid only a director’s fee by the Company. 
 (n) “ Continuous Status as an Employee,
Consultant or Outside Director ” shall mean the absence of any interruption or termination of service as an Employee, Consultant or Outside Director. Continuous Status as an Employee, Consultant or Outside Director shall not be considered
interrupted in the case of sick leave, military leave, or any other leave of absence approved by the Administrator. 
 (o) “ Determination Date ” means the latest possible date that will not jeopardize the qualification of an Award granted under the Program as “performance-based compensation” under Section 162(m) of
the Code. 
 (p) “ Director ” shall mean a member of the Board. 
 (q) “ Employee ” shall mean any person, including Officers and Directors, employed by the Company or any Parent or
Subsidiary of the Company. The payment of a Director’s fee by the Company shall not be sufficient to constitute “employment” by the Company. 
 (r) “ Exchange Act ” shall mean the Securities Exchange Act of 1934, as amended. 
 (s) “ Incentive Stock Option ” means an Option that by its terms qualifies and is otherwise intended to qualify as an incentive stock option within the meaning of Section 422 of the Code and
the regulations promulgated thereunder. 
 (t) “ Initial Director Grant ” shall mean the automatic
Option grant made to an Outside Director pursuant to Section 8(b). 
 (u) “ Nonstatutory Stock Option
” means an Option that by its terms does not qualify or is not intended to qualify as an Incentive Stock Option. 
 (v) “ Officer ” shall mean a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 
 (w) “ Option ” shall mean a stock option granted pursuant to the Program. 
 (x) “ Option Agreement ” means a written or electronic agreement between the Company and an Optionee evidencing the
terms and conditions of an individual Option grant. The Option Agreement is subject to the terms and conditions of the Program. 
 (y) “ Optioned Stock ” shall mean the Common Stock subject to an Award. 
 (z) “
Optionee ” shall mean an Employee, Consultant or Outside Director who holds an outstanding Option. 
 (aa) “ Outside Director ” shall mean a member of the Board of Directors of the Company who is not an Employee. 
 (bb) “ Parent ” shall mean a “parent corporation”, whether now or hereafter existing, as defined in Section 424(e) of the Code. 
 (cc) “ Partial Director Annual Grant ” shall mean the automatic Option grant made to an Outside Director on a date
other than the date of an annual meeting of the Company’s stockholders pursuant to Section 8(d). 
 (dd) “
Participant ” means the holder of an outstanding Award including an Optionee. 
 (ee) “ Performance
Period ” means any fiscal year of the Company or such other period as determined by the Administrator in its sole discretion. 
 (ff) “ Performance Share ” means an Award denominated in Shares which may be earned in whole or in part upon attainment of Performance Goals or other vesting criteria as the Administrator may
determine pursuant to Section 12. 
  

 I-2 

 (gg) “ Performance Unit ” means an Award which may be earned in
whole or in part upon attainment of Performance Goals or other vesting criteria as the Administrator may determine and which may be settled for cash, Shares or other securities or a combination of the foregoing pursuant to Section 12.

 (hh) “ Period of Restriction ” means the period during which the transfer of Shares of
Restricted Stock are subject to restrictions and therefore, the Shares are subject to a substantial risk of forfeiture. Such restrictions may be based on the passage of time, the achievement of target levels of performance, or the occurrence of
other events as determined by the Administrator. 
 (ii) “ Program ” shall mean this 1996 Stock
Incentive Program. 
 (jj) “ Restricted Stock ” means Shares issued pursuant to a Restricted Stock award
under Section 9 of the Program, or issued pursuant to the early exercise of an Option. 
 (kk) “ Restricted
Stock Unit ” means a bookkeeping entry representing an amount equal to the Fair Market Value of one Share, granted pursuant to Section 10. Each Restricted Stock Unit represents an unfunded and unsecured obligation of the Company.

 (ll) “ Retirement ” shall mean the termination of a Participant’s Continuous Status as an
Employee, Consultant or Outside Director when any of the following are true: (i) the Participant is at least fifty-five (55) years old and he or she has completed at least seven (7) years of service as an Employee, Consultant, or, if
applicable, Outside Director, (ii) the Participant is at least sixty-three (63) years old, or (iii) the Participant’s age when added to the number of years of service as an Employee, Consultant or, if applicable, Outside Director
equals or exceeds seventy (70). 
 (mm) “ Rule 16b-3 ” shall mean Rule 16b-3 of the Exchange
Act or any successor to Rule 16b-3, as in effect when discretion is being exercised with respect to the Program. 
 (nn) “ Share ” shall mean a share of the Common Stock, as adjusted in accordance with Section 15 of the Program. 
 (oo) “ Stock Appreciation Right ” means an Award, granted alone or in connection with an Option, that pursuant to Section 11 is designated as a Stock Appreciation Right. 
 (pp) “ Subsidiary ” shall mean a “subsidiary corporation”, whether now or hereafter existing, as defined
in Section 424(f) of the Code. 
 3. Stock Subject to the Program.  
 (a) Stock Subject to the Program. Subject to the provisions of Section 15 of the Program, the maximum aggregate
number of shares under the Program is 36,050,000 shares of Common Stock. The Shares may be authorized, but unissued, or reacquired Common Stock. 
 (b) Full Value Awards. Any Shares subject to Awards of Restricted Stock, Restricted Stock Units, Performance Units, Performance Shares and Stock Appreciation Rights, will be counted against the
numerical limits of this Section 3 as two (2) Shares for every one (1) Share subject thereto. Further, if Shares acquired pursuant to any such Award are forfeited or repurchased by the Company and would otherwise return to
the Program pursuant to Section 3(c), two (2) times the number of Shares so forfeited or repurchased will return to the Program and will again become available for issuance. 
 (c) Lapsed Awards. If an Award expires or becomes unexercisable without having been exercised in full, or, with respect
to Restricted Stock, Restricted Stock Units, Performance Shares or Performance Units, is forfeited to or repurchased by the Company, the unpurchased Shares (or for Awards other than Options and Stock Appreciation Rights, the forfeited or repurchased
shares) which were subject thereto will become available for future grant or sale under the Program (unless the Program has terminated). With respect to Stock Appreciation Rights, only Shares actually issued pursuant to a Stock Appreciation Right
will cease to be available under the Program; all remaining Shares under Stock Appreciation Rights will remain available for future grant or sale under the Program (unless the Program has terminated). However, Shares that have actually been issued
under the Program under any Award will not be returned to the Program and will not become available for future distribution under the Program; provided, however, that if unvested Shares of Restricted Stock, Restricted Stock Units, Performance Shares
or Performance Units are repurchased by the Company or are forfeited to the Company, such Shares will become available for future grant under the Program. Shares used to pay the tax and exercise price of an Award will become available for 

  

 I-3 

 
future grant or sale under the Program. To the extent an Award under the Program is paid out in cash rather than Shares, such cash payment will not result in
reducing the number of Shares available for issuance under the Program. Notwithstanding the foregoing and, subject to adjustment provided in Section 15, the maximum number of Shares that may be issued upon the exercise of Incentive Stock
Options shall equal the aggregate Share number stated in Section 3(a), plus, to the extent allowable under Section 422 of the Code, any Shares that become available for issuance under the Program under this Section 3(c). 

4. Administration of the Program.  
 (a) Procedure.  
 (i) Multiple Administrative Bodies. The
Program may be administered by different Committees with respect to different groups of Employees or Consultants. 
 (ii) Section 162(m). To the extent that the Administrator determines it to be desirable to qualify Options granted hereunder as “performance-based compensation” within the meaning of
Section 162(m) of the Code, the Program shall be administered by a Committee of two or more “outside directors” within the meaning of Section 162(m) of the Code. 
 (iii) Rule 16b-3. To the extent desirable to qualify transactions hereunder as exempt under Rule 16b-3, the
transactions contemplated hereunder shall be structured to satisfy the requirements for exemption under Rule 16b-3. 
 (iv) Other Administration. Other than as provided above, the Program shall be administered by (A) the Board or (B) a Committee, which committee shall be constituted to satisfy Applicable Laws. 
 (b) Power of the Administrator. Subject to the provisions of the Program, the Administrator shall have the authority, in
its discretion: (i) to determine the terms and conditions of any Award granted hereunder (which need not be identical) consistent with the terms of the Program; (ii) to approve forms of agreement for use under the Program; (iii) to
determine, upon review of relevant information and in accordance with Section 7(b)(ii) of the Program, the fair market value of the Common Stock; (iv) to determine the exercise price per share of Options and Stock Appreciation Rights
to be granted, which exercise price shall be determined in accordance with Sections 7 and 11 of the Program; (v) to select the Employees or Consultants to whom Awards may be granted hereunder (except with respect to automatic Option grants
made to certain Outside Directors); (vi) to interpret the Program; (vii) to prescribe, amend and rescind rules and regulations relating to the Program; (viii) to modify or amend each Award with the consent of the holder thereof;
(ix) to authorize any person to execute on behalf of the Company any instrument required to effectuate the grant of an Award previously granted by the Administrator; (x) to allow Participants to satisfy withholding tax obligations by
electing to have the Company withhold from the Shares to be issued upon exercise of an Award that number of Shares having a Fair Market Value equal to the minimum amount required to be withheld; (xi) to grant in addition to the incentives
described in Sections 7, 9, 10, 11 and 12 below, other incentives payable in cash or Shares under the Program as determined by the Administrator to be in the best interests of the Company and subject to any terms and conditions the
Administrator deems advisable; and (xii) to make all other determinations deemed necessary or advisable for the administration of the Program. However, with respect to Options granted to certain Outside Directors pursuant to Section 8
hereof, the Administrator shall exercise no discretion and such awards shall be administered solely according to their terms. 
 (c) Effect of Administrator’s Decision. All decisions, determinations and interpretations of the Administrator shall be final and binding on all Participants and any other holders of any Awards granted under the
Program. 
 5. Eligibility. Nonstatutory Stock Options, Restricted Stock, Restricted Stock Units, Stock Appreciation Rights,
Performance Units, Performance Shares and such other cash or stock awards as the Administrator determines may be granted to Employees and Consultants; Options may also be granted to Outside Directors who are neither employees nor representatives of
stockholders owning more than one percent (1%) of the outstanding shares of the Company. However, (i) Incentive Stock Options may be granted only to Employees, and (ii) Options may only be granted to Outside Directors who are neither
Employees nor representatives of stockholders owning more than one percent (1%) of the outstanding shares of the Company in accordance with the provisions of Section 8 hereof. An Employee, Consultant or Outside Director who has been
granted an Award may, if he or she is otherwise eligible, be granted an additional Award or Awards. 
  

 I-4 

 6. Limitations.  
 (a) Exercise Price; Repricing. No Awards of Options or Stock Appreciation Rights may be granted with an exercise price or
purchase price that is less than 100% of the Fair Market Value per share on the date of grant. The Administrator may not modify or amend an Option or Stock Appreciation Right to reduce the exercise price of such Option or Stock Appreciation Right
after it has been granted (except for adjustments made pursuant to Section 15) nor may the Administrator cancel any outstanding Option or Stock Appreciation Right and immediately replace it with a new Option or Stock Appreciation Right with a
lower exercise price, unless, in either case, such action is approved by the Company’s stockholders. 
 (b) Outside Directors.  
 (i) No Awards may be granted to Outside Directors owning more than one
percent (1%) of the outstanding shares of the Company. 
 (ii) No Options will be granted to Directors who are also
Employees pursuant to the provisions of Section 8. The provisions set forth in Section 8 hereof shall not be amended more than once every six months, other than to comport with changes in the Code, the Employee Retirement Income Security
Act of 1974 as amended, or the rules or regulations promulgated thereunder. 
 (c) Section 162(m). 

 (i) The President and/ or Chief Executive Officer of the Company shall not be granted, in any fiscal year of the
Company, Options to purchase more than 1,500,000 Shares, and no other Employee shall be granted, in any fiscal year of the Company, Options to purchase more than 500,000 Shares. 
 (ii) During any fiscal year of the Company, no Participant will receive more than an aggregate of 250,000 Shares of Restricted Stock;
provided, however, that in connection with a Participant’s initial service as an Employee, an Employee may be granted an aggregate of up to an additional 250,000 Shares of Restricted Stock. 
 (iii) During any fiscal year of the Company, no Participant will receive more than an aggregate of 250,000 Restricted Stock Units;
provided, however, that in connection with a Participant’s initial service as an Employee, an Employee may be granted an aggregate of up to an additional 250,000 Restricted Stock Units. 
 (iv) The President and/ or Chief Executive Officer of the Company shall not be granted, in any fiscal year of the Company, Stock
Appreciation Rights to purchase more than 750,000 Shares, and no other Employee shall be granted, in any fiscal year of the Company, Stock Appreciation Rights to purchase more than 250,000 Shares. 
 (v) During any fiscal year, (a) no Participant will receive Performance Units having an initial value greater than $250,000, and
(b) no Participant will receive more than 250,000 Performance Shares. Notwithstanding the foregoing limitation, in connection with a Participant’s initial service as an Employee, an Employee may be granted up to an additional 250,000
Performance Shares. 
 (d) Incentive Stock Options.  
 (i) Each Option will be designated in the Award Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option.
However, notwithstanding such designation, to the extent that the aggregate fair market value of Shares subject to an Optionee’s incentive stock options granted by the Company, any Parent or Subsidiary, which become exercisable for the first
time during any calendar year (under all plans or programs of the Company or any Parent or Subsidiary) exceeds $100,000, such excess Options shall be treated as Nonstatutory Stock Options. For purposes of this Section 6(d)(i), incentive stock
options shall be taken into account in the order in which they were granted, and the fair market value of the Shares shall be determined as of the time of grant. 
 (ii) In the case of an Incentive Stock Option granted to an Employee who, at the time of grant of such Incentive Stock Option owns
stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price shall be no less than 110% of the fair market value per Share on the date of
grant. 
 (iii) The term of each Incentive Stock Option shall be ten (10) years from the date of grant thereof or
such shorter term as may be provided by the Administrator. However, in the case of an Incentive Stock Option granted to an Optionee who, at the time the Option is granted, owns stock representing more than ten percent 

  

 I-5 

 
(10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Option shall be five (5) years from the
date of grant thereof or such shorter time as may be provided by the Administrator, or (b) if the Option is not an Incentive Stock Option, the term of the Option shall be five (5) years and one (1) day from the date of grant thereof
or such shorter term as may be provided by the Administrator. 
 (e) Term of Nonstatutory Stock Option. The
term of each Nonstatutory Stock Option shall be ten (10) years and one (1) day from the date of grant thereof or such shorter term as may be provided by the Administrator. In the case of a Nonstatutory Stock Option granted to an Optionee
who, at the time the Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary the Option is not an Incentive Stock Option, the term of the
Option shall be five (5) years and one (1) day from the date of grant thereof or such shorter term as may be provided by the Administrator. 
 (f) Reload Awards. The Administrator will not be permitted to grant an Option with a “reload” feature whereby a Participant who exercises an Option with Shares is immediately and
automatically granted a new Option for the number of Shares used to exercise the original Option and with the same terms as the original Option, except with an exercise price equal to the then Fair Market Value. 
 7. Stock Options.  
 (a) Limitations.  
 (i) The following limitations shall apply to grants of Options under the
Program (defined below): 
 (A) The President and/ or Chief Executive Officer of the Company shall not be granted, in
any fiscal year of the Company, options to purchase more than 1,500,000 Shares, and no other Employee shall be granted, in any fiscal year of the Company, Options to purchase more than 500,000 Shares. 
 (B) The foregoing limitations shall be adjusted proportionately in connection with any change in the Company’s capitalization
as described in Section 15. 
 (C) The foregoing limitations set forth in this Section 7(a) are intended
to satisfy the requirements applicable to Options intended to qualify as “performance-based compensation” (within the meaning of Section 162(m) of the Code). In the event the Administrator determines that such limitations are not
required to qualify Options as performance-based compensation, the Administrator may modify or eliminate such limitations. 
 (b) Option Exercise Price and Consideration.  
 (i) The per Share exercise price for the Shares to
be issued pursuant to exercise of an Option shall be such price as is determined by the Administrator, but in no event shall it be less than 100% of the fair market value per Share on the date of grant. In the case of an Incentive Stock Option
granted to an Employee who, at the time of grant of such Incentive Stock Option owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise
price shall be no less than 110% of the fair market value per Share on the date of grant. 
 (ii) The fair market value
shall be determined by the Administrator; provided, however, in the event that the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq National Market or The Nasdaq SmallCap
Market of The Nasdaq Stock Market, its fair market value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system for the trading day that is the time of determination (or
if such time of determination does not occur on a trading day, the last trading day prior to the time of determination), as reported in THE WALL STREET JOURNAL or such other source as the Administrator deems reliable; or in the event that the Common
Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the fair market value of a Share of Common Stock shall be the mean between the high bid and low asked prices for the Common Stock on the last market
trading day prior to the day of determination, as reported in THE WALL STREET JOURNAL or such other source as the Administrator deems reliable. 
 (iii) The consideration to be paid for the Shares to be issued upon exercise of an Option, including the method of payment, shall be determined by the Board and may consist entirely of: 
 (A) cash, 
  

 I-6 

 (B) check, 
 (C) delivery of a properly executed exercise notice together with such other documentation as the Administrator and the broker, if
applicable, shall require to effect an exercise of the Option and delivery to the Company of the sale proceeds required to pay the exercise price, or 
 (D) any combination of such methods of payment. 
 In making its determination as to the type of
consideration to accept, the Administrator shall consider if acceptance of such consideration may be reasonably expected to benefit the Company. 
 However, with respect to Options granted to certain Outside Directors pursuant to Section 8 hereof, the consideration to be paid for the Shares to be issued upon exercise of an Option, including the method of payment, shall consist
entirely of the types of consideration listed in Section 7(b)(iii)(A), (B), (C), (D) and (E) above. 
 (c) Term of Option. The term of each Option shall be ten (10) years from the date of grant thereof or such shorter term as may be provided by the Administrator. The term of each Option that is not an Incentive Stock
Option shall be ten (10) years and one (1) day from the date of grant thereof or such shorter term as may be provided by the Administrator. However, in the case of an Option granted to an Optionee who, at the time the Option is granted,
owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, (a) if the Option is an Incentive Stock Option, the term of the Option shall be five (5) years
from the date of grant thereof or such shorter time as may be provided by the Administrator, or (b) if the Option is not an Incentive Stock Option, the term of the Option shall be five (5) years and one (1) day from the date of grant
thereof or such shorter term as may be provided by the Administrator. However, with respect to Options granted to certain Outside Directors pursuant to Section 8 hereof the term shall be as stated in such Section. 
 (d) Exercise of Option. 
 (i) Procedure for Exercise; Rights as a Stockholder. Any Option granted hereunder, except for Options granted to certain Outside Directors in accordance with Section 8, shall be exercisable at
such times and under such conditions as determined by the Administrator, including performance criteria with respect to the Company and/or the Optionee, and shall be permissible under the terms of the Program. 
 (A) An Option may not be exercised for a fraction of a Share. 
 (B) An Option shall be deemed to be exercised when written notice of such exercise has been given to the Company either by a signed
writing or electronic transmission in accordance with the terms of the Option by the person entitled to exercise the Option and full payment for the Shares with respect to which the Option is exercised, together with any applicable withholding
taxes, has been received by the Company. Full payment may, as authorized by the Administrator, consist of any consideration and method of payment allowable under Section 7(b)(iii) of the Program. Until the issuance (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company) of the stock certificate evidencing such Shares, which issuance shall be made as soon as is practicable, no right to vote or receive dividends or
any other rights as a stockholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such stock certificate promptly upon exercise of the Option. No adjustment
will be made for a dividend or other right for which the record date is prior to the date the stock certificate is issued, except as provided in Section 15 of the Program. 
 (C) Exercise of an Option in any manner shall result in a decrease in the number of Shares which thereafter may be available, both
for purposes of the Program and for sale under the Option, by the number of Shares as to which the Option is exercised. 
 (ii) Termination of Status as an Employee, Consultant or Outside Director. Unless otherwise provided by the Administrator, in the event of termination of an Optionee’s Continuous Status as an Employee, Consultant or
Outside Director, such Optionee may, but only within ninety (90) days (or, for Options not granted pursuant to Section 8 hereof, for such other period of time, not exceeding 90 days in the case of an Incentive Stock Option or six
(6) months in the case of a Nonstatutory Stock Option, as is determined by the Administrator, with such determination in the case of an Incentive Stock Option being made at the time of grant of the Option) after the date of such termination
(but in no event later than the date of expiration of the 

  

 I-7 

 
term of such Option as set forth in the Option Agreement), exercise his or her Option to the extent that the Optionee was entitled to exercise it as of the
date of such termination. To the extent that the Optionee was not entitled to exercise the Option at the date of such termination, or if the Optionee does not exercise such Option (which the Optionee was entitled to exercise) within the time
specified herein, the Option shall terminate. 
 (iii) Disability of Optionee. Notwithstanding the provisions
of Section 7(d)(ii) above, unless otherwise provided by the Administrator, in the event of termination of an Optionee’s Continuous Status as an Employee, Consultant or Outside Director as a result of his or her total and permanent
disability (as defined in Section 22(e)(3) of the Code), the Optionee may, until the date of expiration of the term of such Option as set forth in the Option Agreement (or such shorter period of time as provided by the Administrator),
exercise his or her Option to the extent the Optionee was entitled to exercise it at the date of such termination. To the extent that the Optionee was not entitled to exercise the Option at the date of termination, or if the Optionee does not
exercise such Option (which the Optionee was entitled to exercise) within the time specified herein, the Option shall terminate. 
 (iv) Death of Optionee. In the event of the death of an Optionee: 
 (A) during the term of
the Option, where the Optionee is at the time of his or her death an Employee, Consultant or Outside Director of the Company and where such Optionee shall have been in Continuous Status as an Employee, Consultant or Outside Director since the date
of grant of the Option, the Option may be exercised, at any time within one (1) year following the date of death, by the Optionee’s estate or by a person who acquired the right to exercise the Option by bequest or inheritance, to the
extent that he or she was entitled to exercise it at the date of death; or 
 (B) within ninety (90) days after the
termination of Continuous Status as an Employee, Consultant or Outside Director by the Company without cause, the Option may be exercised, at any time within one (1) year following the date of death, by the Optionee’s estate or by a person
who acquired the right to exercise the Option by bequest or inheritance, but only to the extent of the right to exercise that had accrued at the date of termination. 
 (v) Retirement. Notwithstanding the provisions of Section 7(d)(ii) above, unless otherwise provided by the
Administrator, in the event of termination of an Optionee’s Continuous Status as an Employee, Consultant or Outside Director as a result of his or her Retirement, the Optionee may, until the date of expiration of the term of such Option as set
forth in the Option Agreement (or such shorter period of time as provided by the Administrator), exercise his or her Option to the extent the Optionee was entitled to exercise it at the date of such termination. To the extent that the Optionee was
not entitled to exercise the Option at the date of termination, or if the Optionee does not exercise such Option (which the Optionee was entitled to exercise) within the time specified by the Administrator, the Option shall terminate. 
 8. Automatic Option Grants to Certain Outside Directors. The provisions set forth in this Section 8 shall not be amended more than
once every six months, other than to comport with changes in the Code, the Employee Retirement Income Security Act of 1974 as amended, or the rules or regulations promulgated thereunder. All grants of Options to Outside Directors under this
Program shall be automatic and non-discretionary and shall be made strictly in accordance with the following provisions: 
 (a) No person shall have any discretion to select which Outside Directors shall be granted Options or to determine the number of shares to be covered by Options granted to Outside Directors; provided, however, that nothing in this
Program shall be construed to prevent an Outside Director from declining to receive an Option under this Program. 
 (b) Upon a person’s initial election or appointment as an Outside Director, he or she shall automatically receive an Option (the “ Initial Director Grant ”) to purchase 33,000 Shares; provided, however that an
Inside Director who ceases to be an Inside Director but who remains a Director shall not receive such automatic grant. 
 (c) On the date of each annual meeting of the Company’s stockholders, each person who is then an Outside Director and who was an Outside Director from the date of the previous annual meeting through the date of the current annual
meeting, and who is not a representative of stockholders owning more than one percent (1%) of the outstanding shares of the Company shall automatically receive an Option to purchase 17,500 Shares (the “ Complete Annual Director Grant
”). 
  

 I-8 

 (d) Each Outside Director who is not a representative of stockholders owning more
than one percent (1%) of the outstanding shares of the Company and who first becomes an Outside Director as of a date other than the date of an annual meeting of the Company’s stockholders shall automatically receive upon the date of the
annual stockholder’s meeting immediately following the date he or she first becomes an Outside Director, an Option (the “ Partial Director Annual Grant ” and collectively with the Complete Annual Grant, the “ Annual
Director Grants ”) to purchase that number of Shares obtained by multiplying 17,500 by a fraction, the numerator of which is the difference obtained by subtracting from twelve (12) the number of whole calendar months that elapse from
the date such person first becomes an Outside Director through the date of the annual meeting immediately following the date he or she first becomes an Outside Director and the denominator of which is 12. 
 (e) On the date of each annual meeting of the Company’s stockholders, each Outside Director who acts as the Chairman of the
Board shall automatically receive an Option to purchase 17,500 Shares, if immediately after such meeting, he or she shall continue to serve as the Chairman of the Board (the “ Chairman Grant ”). 
 (f) The terms of an Option granted pursuant to this Section 8 shall be as follows: 
 (i) the term of the Annual Director Grants and the Chairman Grant shall be five (5) years and the term of the Initial Director
Grants shall be 10 years; 
 (ii) except as provided in Sections 7(d)(ii), 7(d)(iii), 7(d)(iv), and 7(d)(v) of
this Program, the Option shall be exercisable only while the Outside Director remains a Director; 
 (iii) the exercise
price per share of Common Stock shall be 100% of the fair market value on the date of grant of the Option; 
 (iv) the
Annual Director Grants and the Chairman Grant shall become exercisable in installments cumulatively with respect to twenty-five percent (25%) of the Optioned Stock six months after the date of grant and as to an additional twelve and one-half
percent (12.5%) of the Optioned Stock each calendar quarter thereafter, so that one hundred percent (100%) of the Optioned Stock shall be exercisable two years after the date of grant, subject to the Outside Director remaining a Director
through each applicable vesting date; provided, however, that in no event shall any Option be exercisable prior to obtaining stockholder approval of the Program. 
 (v) the Initial Director Grants shall become exercisable in installments cumulatively with respect to twenty-eight percent
(28%) of the Optioned Stock one year after the date of grant and as to an additional two percent (2%) of the Optioned Stock each calendar month thereafter, so that one hundred percent (100%) of the Optioned Stock shall be exercisable
four years after the date of grant, subject to the Outside Director remaining a Director through each applicable vesting date. 
 9. Restricted Stock.  
 (a) Grant of Restricted Stock. Subject to the terms and
provisions of the Program, the Administrator, at any time and from time to time, may grant Shares of Restricted Stock to Employees or Consultants in such amounts as the Administrator, in its sole discretion, will determine. 
 (b) Restricted Stock Agreement. Each Award of Restricted Stock will be evidenced by an Award Agreement that will specify
the Period of Restriction, the number of Shares granted, and such other terms and conditions as the Administrator, in its sole discretion, will determine. Notwithstanding the foregoing, during any fiscal year no Participant will receive more than an
aggregate of 250,000 Shares of Restricted Stock; provided, however, that in connection with a Participant’s initial service as an Employee, an Employee may be granted an aggregate of up to an additional 250,000 Shares of Restricted Stock.
Unless the Administrator determines otherwise, Shares of Restricted Stock will be held by the Company as escrow agent until the restrictions on such Shares have lapsed. 
 (c) Transferability. Except as provided in this Section 9, Shares of Restricted Stock may not be sold, transferred,
pledged, assigned, or otherwise alienated or hypothecated until the end of the applicable Period of Restriction. 
 (d) Vesting Criteria and Other Terms. The Administrator will set the Period of Restriction, which, depending on the extent to which the vesting criteria are met, will determine the number of Shares of Restricted Stock that
will be earned by the Participant. The Administrator may set vesting criteria based upon the achievement of Company-wide, business unit, or individual goals (including, but not limited to, continued employment or service), or any other basis
determined by the Administrator in its discretion. 
  

 I-9 

 (e) Removal of Restrictions. Except as otherwise provided in this
Section 9, Shares of Restricted Stock covered by each Restricted Stock grant made under the Program will be released from escrow as soon as practicable after the last day of the Period of Restriction. The Administrator, in its discretion, may
accelerate the time at which any restrictions will lapse or be removed. 
 (f) Voting Rights. During the
Period of Restriction, Employees or Consultants holding Shares of Restricted Stock granted hereunder may exercise full voting rights with respect to those Shares, unless the Administrator determines otherwise. 
 (g) Dividends and Other Distributions. During the Period of Restriction, Employees or Consultants holding Shares of
Restricted Stock will not be entitled to receive any dividends or other distributions paid with respect to such, unless the Administrator determines otherwise. 
 (h) Return of Restricted Stock to Company. On the date set forth in the Award Agreement, the Restricted Stock for which
restrictions have not lapsed will revert to the Company and again will become available for grant under the Program. 
 10. Restricted Stock Units.  
 (a) Grant. Restricted Stock Units may be granted at any
time and from time to time as determined by the Administrator. Each Restricted Stock Unit grant shall be evidenced by an Award Agreement that shall specify such other terms and conditions as the Administrator, in its sole discretion, shall
determine, including all terms, conditions, and restrictions related to the grant, the number of Restricted Stock Units and the form of payout, which, subject to Section 10(d), may be left to the discretion of the Administrator. Notwithstanding
the anything to the contrary in this subsection (a), d uring any fiscal year of the Company, no Participant will receive more than an aggregate of 250,000 Restricted Stock Units; provided, however, that in connection with a Participant’s
initial service as an Employee, an Employee may be granted an aggregate of up to an additional 250,000 Restricted Stock Units. 
 (b) Vesting Criteria and Other Terms. The Administrator shall set vesting criteria in its discretion, which, depending on the extent to which the criteria are met, will determine the number of Restricted Stock Units that
will be paid out to the Participant. The Administrator may set vesting criteria based upon the achievement of Company-wide, business unit, or individual goals (including, but not limited to, continued employment or service), or any other basis
determined by the Administrator in its discretion. 
 (c) Earning Restricted Stock Units. Upon meeting the
applicable vesting criteria, the Participant shall be entitled to receive a payout as specified in the Restricted Stock Unit Award Agreement. Notwithstanding the foregoing, at any time after the grant of Restricted Stock Units, the Administrator, in
its sole discretion, may reduce or waive any vesting criteria that must be met to receive a payout. 
 (d) Form and Timing of Payment. Payment of earned Restricted Stock Units shall be made as soon as practicable after the date(s) set forth in the Restricted Stock Unit Award Agreement. The Administrator, in its
sole discretion, may pay earned Restricted Stock Units in cash, Shares, or a combination thereof. Shares represented by Restricted Stock Units that are fully paid in cash again shall be available for grant under the Plan. 
 (e) Cancellation. On the date set forth in the Restricted Stock Unit Award Agreement, all unearned Restricted Stock Units
shall be forfeited to the Company. 
 11. Stock Appreciation Rights.  
 (a) Grant of Stock Appreciation Rights. Subject to the terms and conditions of the Program, a Stock Appreciation Right
may be granted to Employees or Consultants at any time and from time to time as will be determined by the Administrator, in its sole discretion. 
 (b) Number of Shares. The Administrator will have complete discretion to determine the number of Stock Appreciation Rights granted to any Participant, provided that during any fiscal year, the
President and/ or Chief Executive Officer of the Company shall not be granted Stock Appreciation Rights to purchase more than 750,000 Shares, and no other Employee shall be granted Stock Appreciation Rights to purchase more than 250,000 Shares.

 (c) Exercise Price and Other Terms. The Administrator, subject to the provisions of the Program, will have
complete discretion to determine the terms and conditions of Stock Appreciation Rights granted under the Program, provided, however, that the exercise price will be not less than one hundred percent (100%) of the fair market value of a Share,
determined in accordance with Section 7(b)(ii), on the date of grant. 
  

 I-10 

 (d) Stock Appreciation Right Agreement. Each Stock Appreciation Right
grant will be evidenced by an Award Agreement that will specify the exercise price, the term of the Stock Appreciation Right, the conditions of exercise, and such other terms and conditions as the Administrator, in its sole discretion, will
determine. 
 (e) Expiration of Stock Appreciation Rights. A Stock Appreciation Right granted under the
Program will expire upon the date determined by the Administrator, in its sole discretion, and set forth in the Award Agreement. Notwithstanding the foregoing, the rules of Section 7(d) also will apply to Stock Appreciation Rights.

 (f) Payment of Stock Appreciation Right Amount. Upon exercise of a Stock Appreciation Right, a Participant
will be entitled to receive payment from the Company in an amount determined by multiplying: 
 (i) The difference
between the Fair Market Value of a Share on the date of exercise over the exercise price; times 
 (ii) The number of
Shares with respect to which the Stock Appreciation Right is exercised. 
 At the discretion of the Administrator, the payment upon Stock
Appreciation Right exercise may be in cash, in shares of equivalent value, or in some combination thereof. 
 12. Performance Units
and Performance Shares.  
 (a) Grant of Performance Units/Shares. Performance Units and Performance
Shares may be granted to Employees or Consultants at any time and from time to time, as will be determined by the Administrator, in its sole discretion. The Administrator will have complete discretion in determining the number of Performance
Units/Shares granted to each Participant provided that during any fiscal year, (a) no Participant will receive Performance Units having an initial value greater than $250,000, and (b) no Participant will receive more than 250,000
Performance Shares. Notwithstanding the foregoing limitation, in connection with a Participant’s initial service as an Employee, an Employee may be granted up to an additional 250,000 Performance Shares. 
 (b) Value of Performance Units/Shares. Each Performance Unit will have an initial value that is established by the
Administrator on or before the date of grant. Each Performance Share will have an initial value equal to the fair market value of a Share , determined in accordance with Section 7(b)(ii), on the date of grant. 
 (c) Performance Objectives and Other Terms. The Administrator will set performance objectives or other vesting provisions
(including, without limitation, continued status as a Service Provider) in its discretion which, depending on the extent to which they are met, will determine the number or value of Performance Units/Shares that will be paid out to the Participant.
The Administrator may set performance objectives based upon the achievement of Company-wide, divisional, or individual goals, or any other basis determined by the Administrator in its discretion. Each Award of Performance Units/Shares will be
evidenced by an Award Agreement that will specify the Performance Period, and such other terms and conditions as the Administrator, in its sole discretion, will determine. 
 (d) Earning of Performance Units/Shares. After the applicable Performance Period has ended, the holder of Performance
Units/Shares will be entitled to receive a payout of the number of Performance Units/Shares earned by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding performance objectives or
other vesting provisions have been achieved. After the grant of a Performance Unit/Share, the Administrator, in its sole discretion, may reduce or waive any performance objectives or other vesting provisions for such Performance Unit/Share.

 (e) Form and Timing of Payment of Performance Units/Shares. Payment of earned Performance
Units/Shares will be made as soon as practicable after the expiration of the applicable Performance Period. The Administrator, in its sole discretion, may pay earned Performance Units/Shares in the form of cash, in Shares (which have an aggregate
Fair Market Value equal to the value of the earned Performance Units/Shares at the close of the applicable Performance Period) or in a combination thereof. 
 (f) Cancellation of Performance Units/Shares. On the date set forth in the Award Agreement, all unearned or unvested Performance Units/Shares will be forfeited to the Company, and again will be
available for grant under the Program. 
  

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 13. Performance Goals. Awards of Restricted Stock, Restricted Stock Units, Performance
Shares and Performance Units and other incentives under the Program may be made subject to the attainment of performance goals relating to one or more business criteria within the meaning of Section 162(m) of the Code and may provide for a
targeted level or levels of achievement (“ Performance Goals ”) including, but not limited to, cash flow; cash position; earnings before interest and taxes; earnings before interest, taxes, depreciation and amortization; earnings
per Share; economic profit; economic value added; equity or stockholder’s equity; market share; net income; net profit; net sales; operating earnings; operating income; profit before tax; ratio of debt to debt plus equity; ratio of operating
earnings to capital spending; sales growth; return on net assets; or total return to stockholders. Any Performance Goals may be used to measure the performance of the Company as a whole or a business unit of the Company and may be measured relative
to a peer group or index. The Performance Goals may differ from Participant to Participant and from Award to Award. Prior to the Determination Date, the Administrator will determine whether any significant element(s) will be included in or
excluded from the calculation of any Performance Goal with respect to any Participant. In all other respects, Performance Goals will be calculated in accordance with the Company’s financial statements, generally accepted accounting principles,
or under a methodology established by the Administrator prior to the issuance of an Award, which is consistently applied and identified in the financial statements, including footnotes, or the management discussion and analysis section of the
Company’s annual report. 
 14. Non-Transferability of Awards. During the lifetime of the Participant, an Award shall
be exercisable only by the Participant or the Participant’s guardian, legal representative or permitted transferees. Except as specified below, no Award may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other
than by will or by the laws of descent and distribution. At the sole discretion of the Administrator, and subject to such terms and conditions as the Administrator deems advisable, the Administrator may allow (a) the transfer of a Nonstatutory
Stock Option to an Participant’s spouse, former spouse or dependent pursuant to a court-approved domestic relations order which relates to the provision of child support, alimony payments or marital property rights and (b) the transfer of
a Nonstatutory Stock Option by bona fide gift and not for any consideration, to (i) a member or members of the Participant’s Immediate Family, (ii) a trust established for the exclusive benefit of the Participant and/or
member(s) of the Participant’s Immediate Family, (iii) a partnership, limited liability company of other entity whose only partners or members are the Participant and/or member(s) of the Participant’s Immediate Family, or
(iv) a foundation in which the Participant and/or member(s) of the Participant’s Immediate Family control the management of the foundation’s assets. “Immediate Family” as used herein means the spouse, lineal
descendants, father, mother, brothers and sisters of the Participant. In such case, the transferee shall receive and hold the Option subject to the provisions of this Section 14, and there shall be no further assignation or transfer of the
Option. The terms of Options granted hereunder shall be binding upon the transferees, purchasers, executors, administrators, heirs, successors and assigns of the Participant. 
 15. Adjustments Upon Changes In Capitalization or Merger. Subject to any required action by the stockholders of the Company, 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 Program but as to which no Awards have yet been granted or which have been returned to the
Program upon cancellation or expiration of an Award, as well as the price per share of Common Stock covered by each such outstanding Award, shall be proportionately adjusted for any change in or 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 change in or increase or decrease in the number of issued shares of Common Stock effected without
receipt of consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” 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 Award. 
 In the event of the proposed dissolution or liquidation of the Company, the Board shall notify the holder of an Award at least fifteen (15) days prior to such proposed action. To the extent it has not been previously exercised, the
Award will terminate immediately prior to the consummation of such proposed action. 
 In the event of a merger of the Company with or into
another corporation, or the sale of all or substantially all of the Company’s assets, the 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 the Administrator determines, in the exercise of its sole discretion and in lieu of such assumption or substitution, that (i) the Participant shall have the right to exercise the Award as to all of his or her Outstanding Options and
Stock Appreciation Rights, including as to Shares as to which such Award would not otherwise be exercisable, (ii) all restrictions on Restricted Stock and Restricted Stock Units will lapse, and, 

  

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with respect to Performance Shares and Performance Units, all Performance Goals or other vesting criteria will be deemed achieved at target levels and all
other terms and conditions met. In addition, if an Option or Stock Appreciation Right becomes fully vested and exercisable in lieu of assumption or substitution in the event of a merger or asset sale, the Administrator will notify the Participant in
writing or electronically that the Option or Stock Appreciation Right will be fully vested and exercisable for thirty (30) days (or such other period of time as the Administrator may determine) from the date of such notice, and the Option or
Stock Appreciation Right will terminate upon the expiration of such period; provided, however, that notwithstanding any other provision of this Program, Options granted pursuant to Section 8 hereof shall, in the event of a merger of the Company
with or into another corporation or the sale of all or substantially all of the Company’s assets, be assumed or an equivalent option shall be substituted by such successor corporation or a parent or subsidiary of such successor corporation;
provided, further, however, that in the event the successor corporation or a parent or subsidiary of such successor corporation refuses to so assume or substitute such Options, such Options shall become fully vested and exercisable including as to
Shares as to which such Options would not otherwise be exercisable. For the purposes of this paragraph, an Award shall be considered assumed if, following the merger or asset sale, the Award confers the right to purchase, for each Share subject to
the Award immediately prior to the merger or asset sale, the consideration (whether stock, cash, or other securities or property) or, in the case of a Stock Appreciation Right upon the exercise of which the Administrator determines to pay cash or a
Restricted Stock Unit, Performance Share or Performance Unit which the Administrator can determine to pay in cash, received in the merger or asset sale by holders of Common Stock for each Share held on the effective date of the transaction (and if
holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the merger or sale of assets was not solely common
stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of the Option or Stock Appreciation Right or upon the payout of a
Restricted Stock Unit, Performance Share or Performance Unit, for each Share subject to the Award (or in the case of Restricted Stock Units and Performance Units, the number of implied Shares determined by dividing the value of the Restricted Stock
Units and Performance Units by the per share consideration received by holders of Common Stock in the merger or sale of assets), to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share
consideration received by holders of Common Stock in the merger or sale of assets. 
 Notwithstanding anything in this Section 15 to the
contrary, an Award that vests, is earned or paid-out upon the satisfaction of one or more Performance Goals will not be considered assumed if the Company or its successor modifies any of such Performance Goals without the Participant’s consent;
provided, however, a modification to such Performance Goals only to reflect the successor corporation’s post-merger or sale of assets corporate structure will not be deemed to invalidate an otherwise valid Award assumption. 
 16. Time of Granting Awards. The date of grant of an Award shall be the date on which the Administrator makes the determination granting
such Award, except with respect to the date of grant of Options to certain Outside Directors, which is set by the terms of the Program. Notice of the determination shall be given to each Participant to whom an Award is granted within a reasonable
time after the date of such grant. 
 17. No Effect on Employment or Service. Neither the Program nor any Award shall confer
upon any Participant any right with respect to continuation of employment or consulting relationship with the Company, nor shall it interfere in any way with the Participant’s right or the Company’s right to terminate such employment or
consulting relationship at any time with or without cause. 
 18. Amendment and Termination of the Program.  
 (a) Amendment and Termination. The Board may at any time amend, alter, suspend or terminate the Program. 
 (b) Stockholder Approval. The Company shall obtain stockholder approval of any Program amendment, including, without
limitation, the addition of Shares for issuance under the Program, to the extent necessary and desirable to comply with Applicable Laws. Such stockholder approval, if required, shall be obtained in such a manner and to such a degree as is required
by the Applicable Law. 
 (c) Effect of Amendment or Termination. No amendment, alteration, suspension or
termination of the Program shall impair the rights of any Participant, unless mutually agreed otherwise between the Participant and the Administrator, which agreement must be in writing and signed by the Participant and the Company. 
  

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 19. Term of Program. The Program shall become effective upon the earlier to occur of its
adoption by the Board or its approval by vote of the stockholders of the Company as described in Section 23 of the Program. It shall continue in effect for a term of ten (10) years unless sooner terminated under Section 18 of the
Program. 
 20. Conditions Upon Issuance of Shares. Shares shall not be issued pursuant to the exercise of an Award unless
the exercise of such Award and the issuance and delivery of such Shares pursuant thereto shall comply with all relevant provisions of law, including, without limitation, the Securities Act of 1933, as amended (the “ Securities Act
”), the Exchange Act, the rules and regulations promulgated thereunder, and the requirements of any stock exchange upon which the Shares may then be listed, and shall be further subject to the approval of counsel for the Company with
respect to such compliance. 
 As a condition to the exercise of an Award, the Company may require the person exercising such Award or making
such purchase to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a
representation is required by any of the aforementioned relevant provisions of law. 
 21. Reservation of Shares. The
Company, during the term of this Program, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Program. 
 22. Inability to Obtain Authority. Inability of the Company to obtain authority from any regulatory body having jurisdiction, which
authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite
authority shall not have been obtained. 
 23. Stockholder Approval. Continuance of the Program shall be subject to approval
by the stockholders of the Company within twelve months before or after the date the Program is adopted. Such stockholder approval shall be obtained in the manner and to the degree required under applicable federal and state law. 
  

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