Document:

Common Stock Purchase Agreement

 Exhibit 10.1 
  
 COMMON STOCK PURCHASE AGREEMENT 
  
 THIS COMMON STOCK PURCHASE AGREEMENT (this “Agreement”) is dated as of June 28, 2005 between i2
Technologies, Inc., a Delaware corporation (the “Company”) and R2 Investments, LDC, a Cayman
Islands limited duration company (the “Investor”). 
  
 The Investor desires to purchase from the Company, and the Company desires to sell and issue to the Investor, 1,923,077 shares of the Company’s Common Stock, par value $.00025 per share (the “Shares”). 
  
 In consideration of the mutual promises, representations, warranties,
covenants and conditions set forth in this Agreement, the parties hereto agree as follows: 
  
 ARTICLE I 
 DEFINITIONS 
  
 1.1 Definitions; Interpretation. 
  
 (a) For purposes of this Agreement, the following terms have the indicated meanings: 
  
 “Affiliate” means, as to any person (the “subject Person”), any other person that directly
or indirectly through one or more intermediaries controls or is controlled by, or is under direct or indirect common control with, the subject Person. For the purposes of this definition, “control” when used with respect to any person
means the power to direct the management and policies of such person, directly or indirectly, whether through the ownership of voting securities, through representation on such person’s Board of Directors or other management committee or group,
by contract or otherwise. 
  
 “Board” or
“Board of Directors” means the board of directors of the Company. 
  
 “Business Day” means any day excluding Saturday, Sunday, and any day which is a legal holiday under the laws of the State of Texas or is a day on which banking institutions located in such state are
authorized or required by law or other governmental action to close. 
  
 “Common Stock” means the Company’s common stock, par value $.00025 per share, and any securities into which such Common Stock is hereafter converted or exchanged. 
  
 “Governmental Agency” means any federal, state, local,
foreign or other governmental agency, instrumentality, commission, authority, board or body and any market or exchange upon which the Common Stock is listed or quoted. 
  
 “Lien” means, with respect to any property, any mortgage or pledge, hypothecation, assignment, deposit
arrangement, security interest, tax lien, financing statement, pledge, charge, or other lien, charge, easement, encumbrance, preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever on or with
respect to such property (including, without limitation, any conditional sale or other title retention agreement having substantially the same economic effect as any of the foregoing). 
  

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 “Purchase Price” means $7.80 per Share. 
  
 “Registration Rights Agreement” means the Registration
Rights Agreement between the Company and the Investor, dated as of June 3, 2004. 
  
 “Rights Agreement” means the Rights Agreement, dated as of January 17, 2002, between the Company and Mellon Investor Services, LLC, as amended. 
  
 ARTICLE II 
 ISSUANCE AND SALE OF STOCK 
  
 2.1 Number of Shares and Purchase Price. On the terms and subject to the conditions of this Agreement, at the Closing, the Company shall issue and sell to the Investor, and the Investor shall purchase from the Company, in the
aggregate, 1,923,077 shares for an aggregate purchase price of $15,000,000. 
  
 ARTICLE III 
 CLOSING; CLOSING DELIVERIES 
  
 3.1 Closing. Unless this Agreement shall have terminated pursuant to Article VIII, and
subject to the satisfaction or waiver of the closing conditions for the Closing set forth in Article VII, the closing of the transactions contemplated hereby (the “Closing”) shall take place on a date specified by agreement between
the Company and the Investor, but not later than the third Business Day after all of the conditions to the Closing set forth in Article VII (other than those that will be satisfied by the delivery of documents or tender of payment at the Closing)
are either satisfied or duly waived. The date upon which the Closing occurs is referred to herein as the “Closing Date.” 
  
 3.2 Payment for and Delivery of Shares. At the Closing, the Company shall issue and deliver to the Investor a stock certificate duly executed and registered in the
name of the Investor evidencing ownership of the number of Shares to be purchased by the Investor at the Closing against payment by the Investor of the Purchase Price to be paid by the Investor at the Closing by wire transfer of immediately
available funds to the account designated by the Company in writing. 
  
 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES OF THE COMPANY 
  
 The Company hereby represents and warrants to the Investor that: 
  
 4.1 Authorization. The Company has the requisite corporate power and authority to
enter into this Agreement and to perform all of the obligations of the Company hereunder. The Board of Directors of the Company, or a duly authorized committee of the Board of Directors of the Company, has taken all necessary action to approve this
Agreement and to authorize the execution and delivery thereof by, and the performance by the Company of its obligations under, this Agreement. This Agreement has been duly executed and delivered in the name and on behalf of the Company. 

 

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 4.2 Private Sale. Assuming the accuracy of the Investor’s representations contained herein, the offer, sale
and issuance of the Shares hereunder does not require registration under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws. 
  
 4.3 Takeover Statutes. No “fair price,” “moratorium,” “control share acquisition,” “business
combination,” “stockholder protection” or other form of anti-takeover statute or regulations enacted under Delaware law or under the law of any other jurisdiction, including, without limitation, Section 203 of the Delaware General
Corporation Law, is or will be applicable to the execution, delivery or performance by the Company of this Agreement. 
  
 4.4 Registration Rights Agreement. The Company acknowledges and agrees that the Shares constitute “Registrable Securities” for purposes of the
Registration Rights Agreement and the Investor shall be entitled to the benefit of the Registration Rights Agreement with respect to the Shares, and such Shares shall be treated in the same manner as all other Registrable Securities are treated
under the Registration Rights Agreement (including the obligation to register the shares by the Registration Deadline set forth in the Registration Rights Agreement, as modified by Section 6.5 hereof). 
  
 4.5 Rights Agreement. Assuming the accuracy of the Investor’s representation
contained in Section 5.5 hereof, neither the execution of this Agreement nor the consummation of the transactions contemplated hereby will result in the occurrence of a “Stock Acquisition Date” or “Distribution Date” (in each
case, as such term is defined in the Rights Agreement) or result in the Investor or any of its Affiliates becoming an “Acquiring Person” (as defined in the Rights Agreement). The Company has delivered to the Investor (i) the Company’s
calculation, based in part on the Investor’s representation set forth in Section 5.5, of the beneficial ownership of the Investor in accordance with the terms of the Rights Agreement (the “Ownership Calculation”); and (ii) resolutions
of the Board of Directors approving the Ownership Calculation for purposes of the Rights Agreement. 
  
 ARTICLE V 
 REPRESENTATIONS AND WARRANTIES OF INVESTOR 
  
 The Investor hereby represents and warrants to the Company as follows: 
  
 5.1 Authorization. The Investor has full power and authority to enter into this
Agreement and has taken all action necessary to authorize the execution and delivery of this Agreement and the performance of it obligations hereunder. 
  
 5.2 Investment Intent of the Investor. The Investor is acquiring the Shares pursuant to this Agreement for investment and not with a view to the resale or
distribution of such securities or any interest therein, without prejudice, however, to the Investor’s right, subject to compliance with this Agreement and the Registration Rights Agreement, at all times to sell or otherwise dispose of all or
any part of such securities pursuant to an effective registration statement under the Securities Act or under an exemption from such registration and in compliance with applicable federal and state securities laws. The Investor is acquiring the
Shares hereunder in the ordinary course of business. Except as contemplated by the Registration Rights Agreement, the 
  

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 Investor has no present agreement, undertaking, arrangement, obligation or commitment providing for the disposition of
such Securities. The Investor has not been organized, reorganized or recapitalized specifically for the purpose of investing in such securities. 
  
 5.3 Status of Shares. The Investor has been informed by the Company that the Shares have not been and, except to the extent provided in the Registration Rights
Agreement, will not be registered under the Securities Act or under any state securities laws and are being offered and sold in reliance upon federal and state exemptions for transactions not involving any public offering. 
  
 5.4 Sophistication and Financial Condition of the Investor. The Investor represents
and warrants to the Company that it is an “Accredited Investor” as defined in Regulation D under the Securities Act and that it considers itself to be an experienced and sophisticated investor and to have such knowledge and experience in
financial and business matters as are necessary to evaluate the merits and risks of an investment in the Shares. The Investor has been given access to such information regarding the Company and its Subsidiaries as it has requested and has had the
opportunity to obtain additional information as desired and to ask questions and has received answers regarding such information in order to evaluate the merits and the risks inherent in holding the Shares. The facts set forth in the preceding
sentence, shall not affect any representation or warranty in this Agreement or any condition to the obligations of the parties hereto. 
  
 5.5 Ownership of Shares. As of the date of this Agreement, and before giving effect to the Shares to be acquired hereunder, the Investor beneficially owns (i)
1,291,600 shares of Common Stock and (ii) 101,448 shares of the Company’s 2.5% Series B Convertible Preferred Stock (the “Series B Preferred Stock”). 
  
 5.6 Transfers of Shares. The Investor acknowledges that each certificate evidencing the ownership of Shares shall be imprinted with a
legend substantially in the following form until such shares (i) are transferred or sold pursuant to an effective registration statement, (ii) are transferred or sold pursuant to an exemption from registration provided by Rule 144 under the
Securities Act or (iii) may be transferred pursuant to Rule 144(k) (or any successor provision) under the Securities Act: 
  
 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION
THEREFROM. THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY THE SECURITIES. 
  

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 ARTICLE VI 
 COVENANTS OF THE COMPANY AND THE INVESTOR 
  
 6.1 Form D; Blue Sky Qualifications; Press Release; Current Report on Form 8–K. The Company agrees with the Investor that the Company will, following the Closing: 
  
 (a) file a Form D with respect to the Shares issued at the Closing as required under Regulation D and to provide a copy thereof to the
Investor promptly after such filing; 
  
 (b) take such action as the Company
reasonably determines upon the advice of counsel is necessary to qualify the Shares issued at the Closing for sale under applicable state or “blue-sky” laws or obtain an exemption therefrom, and shall provide evidence of any such action to
the Investor at the Investor’s request; and 
  
 (c) provide the Investor with
a reasonable opportunity to review and comment on any press release or Form 8-K discussing this Agreement and the transactions contemplated hereby prior to the issuance or filing thereof. Thereafter, the Company shall timely file any filings and
notices required by the Securities and Exchange Commission or applicable law with respect to the transactions contemplated hereby. 
  
 6.2 Further Action. Subject to the terms and conditions of this Agreement, the Company and the Investor shall use their reasonable best efforts to take, or cause
to be taken, all actions and to do, or cause to be done, all things necessary under applicable laws and regulations to consummate and make effective the transactions contemplated by this Agreement. The Company shall pay all applicable fees of the
Company and the Investor in connection with the filings required by this Section 6.2. 
  
 6.3 Rights Agreement. The Company agrees that (i) all future calculations of the beneficial ownership of the Investor for purposes of the Rights Agreement shall be done on the same basis as the Ownership Calculation; and (ii) it
shall not, by further amendment or supplement to the Rights Agreement or otherwise, amend clause (iv) of the definition of “Acquiring Person” included in the Rights Agreement (or any of the definitions used in such clause (iv)) without the
prior written consent of the Investor. 
  
 6.4 Conversion Price of Series B
Preferred Stock. The Investor agrees that the conversion price (as defined in the Certificate of Designations for the Series B Preferred Stock) of the Company’s Series B Preferred Stock shall not be adjusted as set forth in Section 5(b) of
the Certificate of Designations for the Series B Preferred Stock as a result of the issuance of Shares pursuant to this Agreement, and the Investor waives any right to have any such adjustment made as a result of the issuance of the Shares pursuant
to this Agreement (regardless of when calculated). 
  
 6.5 Waiver of
Registration Default. The Investor agrees (i) to waive the Registration Default that has occurred under Section 1(d) of the Registration Rights Agreement as a result of the failure of the Company to have had the Registration Statement covering
the Registrable Securities declared effective by the Registration Deadline; and (ii) to amend the definition of “Registration Deadline” in Section 7(l) of the Registration Rights Agreement by replacing the words “the first anniversary
of the Closing Date” with “September 30, 2005”. The provisions of this Section 6.5 shall be conditioned upon the consummation of the Closing and shall become effective only upon consummation of the Closing. 
  

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 ARTICLE VII 
 CONDITIONS PRECEDENT 
  
 7.1 Conditions
to Obligations of Investor at Closing. The obligation of the Investor to purchase the Shares at the Closing in accordance with Section 3.2 shall be subject to the satisfaction or waiver by the Investor of the following conditions precedent on or
prior to the Closing Date: 
  
 (a) as of the Closing Date the representations and
warranties made by the Company in Article IV hereof shall be true and correct in all respects (except that to the extent that any such representation or warranty relates to a particular date, such representation or warranty shall be true and correct
in all respects as of that particular date) to the extent they are qualified by materiality, and to the extent not so qualified shall be true and correct in all material respects; 
  
 (b) the Company shall have fulfilled, performed or complied in all material respects with the covenants and conditions set forth in this
Agreement that are required to be performed by the Company on or before the Closing Date; 
  
 (c) as of the Closing Date the Company shall have received all consents and approvals, including, without limitation, governmental and material third party consents or approvals that are required to be obtained in
connection with the transactions contemplated under this Agreement; 
  
 (d) the
following documents and items shall have been delivered to the Investor at the Closing: 
  
 (i) certificates evidencing ownership of the Shares purchased by the Investor, in each case duly executed and delivered by the Company; and 
  
 (ii) a certificate of a duly authorized officer of the Company dated as of the Closing Date certifying that (A) the closing
conditions described in Section 7.1 have been satisfied, and (B) as to the resolutions of the Board of Directors attached thereto (which resolutions shall have, among other things, authorized all of the transactions contemplated by this Agreement,
and approved this Agreement); 
  
 (e) The Board of Directors of the Company shall
have delivered the Ownership Calculation and the resolutions referred to in Section 4.5, which resolutions shall be reasonably acceptable in form and substance to counsel for the Investor; and 
  
 (f) The Board of Directors of the Company shall have approved the transactions contemplated
hereby (including for purposes of Section 203 of the Delaware General Corporation Law). 
  
 7.2 Conditions to Obligations of the Company. The obligation of the Company to sell and issue the Shares to the Investor at the Closing in accordance with Section 3.2 shall be subject to: 
  
 (a) the delivery by the Investor of the Purchase at the Closing in accordance with Section
3.2; and 
  

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 (b) as of the Closing Date, the representations and warranties made by the Investor in Article V hereof being true and
correct in all respects (except that to the extent that any such representation or warranty relates to a particular date, such representation or warranty shall be true and correct in all respects as of that particular date) to the extent they are
qualified by materiality, and to the extent not so qualified shall be true and correct in all material respects. 
  
 ARTICLE VIII 
 TERMINATION 
  
 8.1 Termination. This Agreement may be terminated at any time prior to the Closing:

  
 (a) by the Investor, so long as the Investor is not in material breach of any
covenant or agreement set forth in this Agreement, if there has been a material breach by the Company or any of its Subsidiaries of any covenant or agreement of the Company set forth in this Agreement, which breach is not cured to the reasonable
satisfaction of the Investor within 15 days after notice thereof is received by the Company; 
  
 (b) by the Company, so long as the Company is not in material breach of any covenant or agreement set forth in this Agreement, if there has been a material breach by the Investor of any covenant or agreement of the
Investor set forth in this Agreement which breach is not cured to the reasonable satisfaction of the Company within 15 days after notice thereof is received by Investor; 
  
 (c) by either the Company or the Investor if the Closing shall not have been consummated on or before the date that is 14 calendar days
after the date of this Agreement; provided, that the party seeking to terminate this Agreement is not then in material breach of this Agreement. 
  
 The party or parties desiring to terminate this Agreement pursuant to any of clauses (a) through (c) above shall give written notice of such termination to the other
parties. 
  
 8.2 Effect of Termination. If this Agreement is terminated as
permitted by Section 8.1, this Agreement shall forthwith become void and there shall be no liability or obligation of any party (or any stockholder, partner, director, officer, employee, agent, consultant or representative of such party) to the
other parties to this Agreement, except that Article X shall continue in full force and effect and (ii) nothing herein will relieve any party from liability for any breach of any representation, warranty, agreement or covenant contained herein prior
to such termination. 
  
 ARTICLE IX 
 SURVIVAL OF REPRESENTATIONS AND WARRANTIES 
  
 9.1 Survivability. All of the representations and warranties of the Company and the Investor contained in this Agreement shall survive the execution and delivery
hereof and thereof and the issuance, sale and delivery of the Shares, and shall remain in full force and effect until the second anniversary of the Closing Date. All covenants and agreements of the Company and the Investor contained in this
Agreement shall survive the execution and delivery hereof and thereof and the issuance, sale and delivery of the Shares, and shall remain in full force and effect in accordance with their respective terms. 
  

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 ARTICLE X 
 GENERAL PROVISIONS 
  
 10.1 Public
Announcements. Neither the Investor nor the Company shall make, or permit any agent or Affiliate to make, any public statements, including, without limitation, any press releases, with respect to this Agreement and the transactions contemplated
hereby without the prior written consent of the other; provided, however, that in the case of announcements, statements, acknowledgments or revelations which either party is required by law to make, issue or release, the making, issuing or releasing
of any such announcement, statement, acknowledgment or revelation by the party so required to do so by law shall not constitute a breach of this Agreement if such party shall have given, to the extent reasonably possible, not less than two (2)
calendar days prior notice to the other party, and shall have attempted, to the extent reasonably possible, to clear such announcement, statement, acknowledgment or revelation with the other party. Each party hereto agrees that it will not
unreasonably withhold any such consent or clearance. 
  
 10.2 Successors and
Assigns. This Agreement shall bind and inure to the benefit of the parties hereto and their respective successors and assigns. Except as otherwise specifically provided herein, this Agreement shall not be assignable by the Company without the
prior written consent of the Investor. The Investor shall be entitled to assign its rights and obligations under this Agreement to any Affiliate of the Investor without the consent of the Company and to any other person with the consent of the
Company (such consent not to be unreasonably withheld) so long as such transferee(s) agree in writing to be bound by the terms of this Agreement. 
  
 10.3 Entire Agreement. This Agreement and each other writing referred to herein or delivered pursuant hereto constitute the entire agreement among the parties with
respect to the subject matter hereof and supersede all prior arrangements or understandings. 
  
 10.4 Notices. All notices, requests, consents and other communications provided for herein shall be in writing and shall be (i) delivered in person, (ii) transmitted by telecopy, (iii) sent by first-class,
registered or certified mail, postage prepaid, or (iv) sent by reputable overnight courier service, fees prepaid, to the recipient at the address or telecopy number set forth below, or such other address or telecopy number as may hereafter be
designated in writing by such recipient. Notices shall be deemed given upon personal delivery, seven days following deposit in the mail as set forth above, upon acknowledgment by the receiving telecopier or one day following deposit with an
overnight courier service. 
  
 To the Company, to: 
  
 i2 Technologies, Inc. 
 One i2 Place 
 11701 Luna Road 
 Dallas, Texas 75234 
 Attention: General
Counsel 
 Facsimile: 469.357.6893 
  

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 With a copy, which shall not constitute notice to the Company, to: 
  
 Baker Botts L.L.P. 
 2001 Ross Avenue, Suite 700 
 Dallas, Texas
75201 
 Attention: Andrew M. Baker 
 Facsimile: 214.953.6503 
  
 To the Investor, to:

  
 General Counsel 
 R2 Investments, LDC

 C/o Amalgamated Gadget, L.P. 
 C/o Scepter Holdings, Inc. 
 301 Commerce Street 
 Suite 3200 
 Fort Worth, Texas 76102 
 Telephone: 817 332-9500 
 Telecopier: 817
332-9606 

			
	 Email:
	 	 BusinessAffairs@acmewidget.com
 FINARB@acmewidget.com

  
 With a copy, which shall not
constitute notice to the Investor, to 
  
 Milbank, Tweed, Hadley
& McCloy LLP 
 One Chase Manhattan Plaza 
 New York, NY 10005 
 Telephone: 212 530-5000 
 Telecopier: 212 530-5219 
 Attn: Thomas C.
Janson 
  
 or, in each case, to such other address or to the attention of such
other person as the recipient party shall have specified by prior written notice to the sending party. 
  
 10.5 Amendment and Waiver. No amendment or waiver of any provision of this Agreement shall be effective, unless the same shall be in writing and signed by the Company and Investor. No such waiver shall operate
as a waiver of, or estoppel with respect to, any subsequent or other failure. No failure by any party to take any action against any breach of this Agreement or default by any other party shall constitute a waiver of such party’s right to
enforce any provision hereof or to take any such action. 
  
 10.6
Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one agreement. 
  

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 10.7 Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this
Agreement shall be governed by the internal laws of the State of Texas, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Texas or any other jurisdictions) that would cause the application of
the laws of any jurisdictions other than the State of Texas. 
  
 10.8 No Third
Party Beneficiaries. Except as specifically set forth or referred to herein, nothing herein is intended or shall be construed to confer upon any person or entity other than the parties hereto and their successors or assigns, any rights or
remedies under or by reason of this Agreement. 
  
 10.9 Severability. If
any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in
full force and effect and shall in no way be affected, impaired or invalidated. 
  
 IN WITNESS WHEREOF, the parties have caused their duly authorized officers to execute this Common Stock Purchase Agreement as of the date first above written. 
  

			
	“COMPANY”
	
	i2 Technologies, Inc.
		
	By:	 	 /s/ Robert Donohoo

	Its:	 	General Counsel
	
	“INVESTOR”
	
	R2 Investments, LDC
		
	By:	 	Amalgamated Gadget, L.P., as its Investment Manager
		
	By:	 	 Scepter Holdings, Inc.,
 its General
Partner

		
	By:	 	 Geoffrey Raynor

	 Its:
	 	President

  

 10Sonic Solutions 2005 SIP (Non-U.S. Employees)

 Exhibit 10.21 
  
 SONIC SOLUTIONS 
  
 2005 STOCK INCENTIVE PLAN 
 (NON-U.S.
EMPLOYEES) 
  
 1. Purposes of the Plan. The purposes of
this Plan are to attract and retain the best available personnel, to provide additional incentives to Employees in connection with their commencement of Continuous Service and to promote the success of the Company’s business. 
  
 2. Definitions. The following definitions shall apply as used herein
and in the individual Award Agreements except as defined otherwise in an individual Award Agreement. In the event a term is separately defined in an individual Award Agreement, such definition shall supercede the definition contained in this Section
2. 
  
 (a) “Administrator” means
the Board or any of the Committees appointed to administer the Plan. 
  
 (b) “Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2 promulgated under the Exchange Act. 
  
 (c) “Applicable Laws” means the legal
requirements relating to the Plan and the Awards under applicable provisions of federal securities laws, state corporate and securities laws, the Code, the rules of any applicable stock exchange or national market system, and the rules of any
non-U.S. jurisdiction applicable to Awards granted to residents therein. 
  
 (d) “Assumed” means that pursuant to a Corporate Transaction either (i) the Award is expressly affirmed by the Company or (ii) the contractual obligations represented by the Award are expressly
assumed (and not simply by operation of law) by the successor entity or its Parent in connection with the Corporate Transaction with appropriate adjustments to the number and type of securities of the successor entity or its Parent subject to the
Award and the exercise or purchase price thereof which at least preserves the compensation element of the Award existing at the time of the Corporate Transaction as determined in accordance with the instruments evidencing the agreement to assume the
Award. 
  
 (e) “Award” means the
grant of an Option, SAR, Dividend Equivalent Right, Restricted Stock, Restricted Stock Unit or other right or benefit under the Plan. 
  
 (f) “Award Agreement” means the written agreement evidencing the grant of an Award executed by the Company and the
Grantee, including any amendments thereto. 
  
 (g) “Board” means the Board of Directors of the Company. 
  
 (h) “Cause” means, with respect to the termination by the Company or a Related Entity of the Grantee’s Continuous
Service, that such termination is for “Cause” as such term is expressly defined in a then-effective written agreement between the Grantee and the Company or such Related Entity, or in the absence of such then-effective written agreement
and definition, is based on, in the determination of the Administrator, the Grantee’s: (i) performance of any act or failure to perform any act in bad faith and to the detriment of the Company or a 

  

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Related Entity; (ii) dishonesty, intentional misconduct or material breach of any agreement with the Company or a Related Entity; or (iii) commission of a
crime involving dishonesty, breach of trust, or physical or emotional harm to any person. 
  
 (i) “Change in Control” means a change in ownership or control of the Company effected through either of the following
transactions: 
  
 (i) the direct or indirect
acquisition by any person or related group of persons (other than an acquisition from or by the Company or by a Company-sponsored employee benefit plan or by a person that directly or indirectly controls, is controlled by, or is under common control
with, the Company) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities pursuant to a
tender or exchange offer made directly to the Company’s shareholders which a majority of the Continuing Directors who are not Affiliates or Associates of the offeror do not recommend such shareholders accept, or 
  
 (ii) a change in the composition of the Board over a period
of thirty-six (36) months or less such that a majority of the Board members (rounded up to the next whole number) ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals who are Continuing Directors.

  
 (j) “Code” means the
Internal Revenue Code of 1986, as amended. 
  
 (k) “Committee” means any committee composed of members of the Board appointed by the Board to administer the Plan. 
  
 (l) “Common Stock” means the common stock of the Company. 
  
 (m) “Company” means Sonic Solutions, a California corporation. 
  
 (n) “Consultant” means any person (other
than an Employee or a Director, solely with respect to rendering services in such person’s capacity as a Director) who is engaged by the Company or any Related Entity to render consulting or advisory services to the Company or such Related
Entity. 
  
 (o) “Continuing
Directors” means members of the Board who either (i) have been Board members continuously for a period of at least thirty-six (36) months or (ii) have been Board members for less than thirty-six (36) months and were elected or nominated for
election as Board members by at least a majority of the Board members described in clause (i) who were still in office at the time such election or nomination was approved by the Board. 
  
 (p) “Continuous Service” means that the provision of services to the Company or a Related
Entity in any capacity of Employee, Director or Consultant is not interrupted or terminated. In jurisdictions requiring notice in advance of an effective termination as an Employee, Director or Consultant, Continuous Service shall be deemed
terminated upon the actual cessation of providing services to the Company or a Related Entity notwithstanding any required notice period that must be fulfilled before a termination as an Employee, Director or 

  

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Consultant can be effective under Applicable Laws. Continuous Service shall not be considered interrupted in the case of (i) any approved leave of absence,
(ii) transfers among the Company, any Related Entity, or any successor, in any capacity of Employee, Director or Consultant, or (iii) any change in status as long as the individual remains in the service of the Company or a Related Entity in any
capacity of Employee, Director or Consultant (except as otherwise provided in the Award Agreement). An approved leave of absence shall include sick leave, military leave, or any other authorized personal leave. 
  
 (q) “Corporate Transaction” means any of
the following transactions: 
  
 (i) a merger or
consolidation in which the Company is not the surviving entity, except for a transaction the principal purpose of which is to change the state in which the Company is incorporated; 
  
 (ii) the sale, transfer or other disposition of all or substantially all of the assets of the Company;

  
 (iii) the complete liquidation or dissolution
of the Company; 
  
 (iv) any reverse merger or
series of related transactions culminating in a reverse merger (including, but not limited to, a tender offer followed by a reverse merger) in which the Company is the surviving entity but (A) the shares of Common Stock outstanding immediately prior
to such merger are converted or exchanged by virtue of the merger into other property, whether in the form of securities, cash or otherwise, or (B) in which securities possessing more than forty percent (40%) of the total combined voting power of
the Company’s outstanding securities are transferred to a person or persons different from those who held such securities immediately prior to such merger or the initial transaction culminating in such merger, but excluding any such transaction
or series of related transactions that the Administrator determines shall not be a Corporate Transaction; or 
  
 (v) acquisition in a single or series of related transactions by any person or related group of persons (other than the Company or by a
Company-sponsored employee benefit plan) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding
securities but excluding any such transaction or series of related transactions that the Administrator determines shall not be a Corporate Transaction. 
  
 (r) “Director” means a member of the Board or the board of directors of any Related Entity. 
  
 (s) “Disability” means as defined under the
long-term disability policy of the Company or the Related Entity to which the Grantee provides services regardless of whether the Grantee is covered by such policy. If the Company or the Related Entity to which the Grantee provides service does not
have a long-term disability plan in place, “Disability” means that a Grantee is unable to carry out the responsibilities and functions of the position held by the Grantee by reason of any medically determinable physical or mental
impairment for a period of not less than ninety (90) consecutive days. A Grantee will not be considered to have incurred a 

  

 3 

 
Disability unless he or she furnishes proof of such impairment sufficient to satisfy the Administrator in its discretion. 
  
 (t) “Dividend Equivalent Right” means a
right entitling the Grantee to compensation measured by dividends paid with respect to Common Stock. 
  
 (u) “Employee” means any person, including an Officer or Director, who is in the employ of the Company or any Related
Entity, subject to the control and direction of the Company or any Related Entity as to both the work to be performed and the manner and method of performance. The payment of a director’s fee by the Company or a Related Entity shall not be
sufficient to constitute “employment” by the Company. 
  
 (v) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 (w) “Fair Market Value” means, as of any date, the value of Common Stock determined as follows: 
  
 (i) If the Common Stock is listed on one or more established
stock exchanges or national market systems, 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 the principal exchange or system on which the Common Stock is listed (as determined by the Administrator) on the date of determination (or, if no closing sales price or closing bid was reported on that date,
as applicable, on the last trading date such closing sales price or closing bid was reported), as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 
  
 (ii) If the Common Stock is regularly quoted on an automated
quotation system (including the OTC Bulletin Board) or by a recognized securities dealer, its Fair Market Value shall be the closing sales price for such stock as quoted on such system or by such securities dealer on the date of determination, but
if 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 date of determination (or, if no such prices were reported on that date, on
the last date such prices were reported), as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or 
  
 (iii) In the absence of an established market for the Common Stock of the type described in (i) and (ii), above, the Fair Market Value
thereof shall be determined by the Administrator in good faith. 
  
 (x) “Grantee” means an Employee who receives an Award under the Plan. 
  
 (y) “Non-Qualified Stock Option” means an Option not intended to qualify as an incentive stock option within the meaning
of Section 422 of the Code. 
  
 (z)
“Officer” means a person who is an officer of the Company or a Related Entity within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 
  

 4 

 (aa) “Option” means a Non-Qualified Stock Option to purchase Shares
pursuant to an Award Agreement granted under the Plan. 
  
 (bb) “Parent” means a “parent corporation”, whether now or hereafter existing, as defined in Section 424(e) of the Code. 
  
 (cc) “Plan” means this 2005 Stock Incentive Plan (Non-U.S. Employees). 
  
 (dd) “Related Entity” means any Parent or
Subsidiary of the Company and any business, corporation, partnership, limited liability company or other entity in which the Company or a Parent or a Subsidiary of the Company holds a substantial ownership interest, directly or indirectly.

  
 (ee) “Replaced” means that
pursuant to a Corporate Transaction the Award is replaced with a comparable stock award or a cash incentive program of the Company, the successor entity (if applicable) or Parent of either of them which preserves the compensation element of such
Award existing at the time of the Corporate Transaction and provides for subsequent payout in accordance with the same (or a more favorable) vesting schedule applicable to such Award. The determination of Award comparability shall be made by the
Administrator and its determination shall be final, binding and conclusive. 
  
 (ff) “Restricted Stock” means Shares issued under the Plan to the Grantee for such consideration, if any, and subject to such restrictions on transfer, rights of first refusal, repurchase provisions,
forfeiture provisions, and other terms and conditions as established by the Administrator. 
  
 (gg) “Restricted Stock Units” means an Award which may be earned in whole or in part upon the passage of time or the
attainment of performance criteria established by the Administrator and which may be settled for cash, Shares or other securities or a combination of cash, Shares or other securities as established by the Administrator. 
  
 (hh) “Rule 16b-3” means Rule 16b-3
promulgated under the Exchange Act or any successor thereto. 
  
 (ii) “SAR” means a stock appreciation right entitling the Grantee to Shares or cash compensation, as established by the Administrator, measured by appreciation in the value of Common Stock.

  
 (jj) “Share” means a share
of the Common Stock. 
  
 (kk)
“Subsidiary” means a “subsidiary corporation”, whether now or hereafter existing, as defined in Section 424(f) of the Code. 
  
 3. Stock Subject to the Plan. 
  
 (a) Subject to the provisions of Section 10, below, the maximum aggregate number of Shares which may be issued pursuant to all Awards is
750,000 Shares. The Shares to be issued pursuant to Awards may be authorized, but unissued, or reacquired Common Stock. 
  

 5 

 (b) Any Shares covered by an Award (or portion of an Award) which is forfeited, canceled
or expires (whether voluntarily or involuntarily) shall be deemed not to have been issued for purposes of determining the maximum aggregate number of Shares which may be issued under the Plan. Shares that actually have been issued under the Plan
pursuant to an Award shall not be returned to the Plan and shall not become available for future issuance under the Plan, except that if unvested Shares are forfeited, or repurchased by the Company at the lower of their original purchase price or
their Fair Market Value at the time of repurchase, such Shares shall become available for future grant under the Plan. 
  
 4. Administration of the Plan. 
  
 (a) Plan Administrator. 
  
 (i) Administration with Respect to Officers. With respect to grants of Awards to Employees who are also Officers or Directors of
the Company, the Plan shall be administered by (A) the Board or (B) a Committee designated by the Board, which Committee shall be constituted in such a manner as to satisfy the Applicable Laws and to permit such grants and related transactions under
the Plan to be exempt from Section 16(b) of the Exchange Act in accordance with Rule 16b-3. Once appointed, such Committee shall continue to serve in its designated capacity until otherwise directed by the Board. 
  
 (ii) Administration With Respect to Other Employees.
With respect to grants of Awards to Employees who are neither Directors nor Officers of the Company, the Plan shall be administered by (A) the Board or (B) a Committee designated by the Board, which Committee shall be constituted in such a manner as
to satisfy the Applicable Laws. Once appointed, such Committee shall continue to serve in its designated capacity until otherwise directed by the Board. The Board may authorize one or more Officers to grant such Awards and may limit such authority
as the Board determines from time to time. 
  
 (iii) Administration Errors. In the event an Award is granted in a manner inconsistent with the provisions of this subsection (a), such Award shall be presumptively valid as of its grant date to the extent permitted by the Applicable
Laws. 
  
 (b) Powers of the Administrator.
Subject to Applicable Laws and the provisions of the Plan (including any other powers given to the Administrator hereunder), and except as otherwise provided by the Board, the Administrator shall have the authority, in its discretion: 
  
 (i) subject to Section 5 of the Plan, to select the
Employees to whom Awards may be granted from time to time hereunder; 
  
 (ii) to determine whether and to what extent Awards are granted hereunder; 
  
 (iii) to determine the number of Shares or the amount of other consideration to be covered by each Award granted hereunder; 
  
 (iv) to approve forms of Award Agreements for use under the
Plan; 
  

 6 

 (v) to determine the terms and conditions of any Award granted hereunder; 
  
 (vi) to amend the terms of any outstanding Award granted
under the Plan, provided that any amendment that would adversely affect the Grantee’s rights under an outstanding Award shall not be made without the Grantee’s written consent; 
  
 (vii) to construe and interpret the terms of the Plan and Awards, including without limitation, any notice
of award or Award Agreement, granted pursuant to the Plan; 
  
 (viii) to grant Awards to Employees employed outside the United States on such terms and conditions different from those specified in the Plan as may, in the judgment of the Administrator, be necessary or desirable to
further the purpose of the Plan; and 
  
 (ix) to
take such other action, not inconsistent with the terms of the Plan, as the Administrator deems appropriate. 
  
 (c) Indemnification. In addition to such other rights of indemnification as they may have as members of the Board or as Officers or
Employees of the Company or a Related Entity, members of the Board and any Officers or Employees of the Company or a Related Entity to whom authority to act for the Board, the Administrator or the Company is delegated shall be defended and
indemnified by the Company to the extent permitted by law on an after-tax basis against all reasonable expenses, including attorneys’ fees, actually and necessarily incurred in connection with the defense of any claim, investigation, action,
suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan, or any Award granted hereunder, and against all amounts
paid by them in settlement thereof (provided such settlement is approved by the Company) or paid by them in satisfaction of a judgment in any such claim, investigation, action, suit or proceeding, except in relation to matters as to which it shall
be adjudged in such claim, investigation, action, suit or proceeding that such person is liable for gross negligence, bad faith or intentional misconduct; provided, however, that within thirty (30) days after the institution of such claim,
investigation, action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity at the Company’s expense to defend the same. 
  

5. Eligibility. Awards may only be granted to Employees (a) who have not previously been an Employee or Director of the Company or a Related
Entity or (b) following a bonafide period of non-employment or non-service to the Company or a Related Entity. Awards may be granted to such Employees who are residing in non-U.S. jurisdictions as the Administrator may determine from time to time.
Participation in the Plan is voluntary. 
  
 6. Terms and
Conditions of Awards. 
  
 (a) Types of
Awards. The Administrator is authorized under the Plan to award any type of arrangement to an Employee that is not inconsistent with the provisions of the Plan and that by its terms involves or might involve the issuance of (i) Shares, (ii) cash
or (iii) an Option, a SAR, or similar right with a fixed or variable price related to the Fair Market Value of 

  

 7 

 
the Shares and with an exercise or conversion privilege related to the passage of time, the occurrence of one or more events, or the satisfaction of
performance criteria or other conditions. Such awards include, without limitation, Options, SARs, sales or bonuses of Restricted Stock, Restricted Stock Units or Dividend Equivalent Rights, and an Award may consist of one such security or benefit,
or two (2) or more of them in any combination or alternative. 
  
 (b) Designation of Award. Each Award shall be designated in the Award Agreement. 
  
 (c) Conditions of Award. Subject to the terms of the Plan, the Administrator shall determine the provisions, terms, and conditions
of each Award including, but not limited to, the Award vesting schedule, repurchase provisions, rights of first refusal, forfeiture provisions, form of payment (cash, Shares, or other consideration) upon settlement of the Award, payment
contingencies, and satisfaction of any performance criteria. The performance criteria established by the Administrator may be based on any one of, or combination of, the following: (i) increase in share price, (ii) earnings per share, (iii) total
shareholder return, (iv) operating margin, (v) gross margin, (vi) return on equity, (vii) return on assets, (viii) return on investment, (ix) operating income, (x) net operating income, (xi) pre-tax profit, (xii) cash flow, (xiii) revenue, (xiv)
expenses, (xv) earnings before interest, taxes and depreciation, (xvi) economic value added, (xvii) market share, (xviii) personal management objectives, and (xix) other measures of performance selected by the Administrator. Partial achievement of
the specified criteria may result in a payment or vesting corresponding to the degree of achievement as specified in the Award Agreement. 
  
 (d) Acquisitions and Other Transactions. The Administrator may issue Awards under the Plan in settlement, assumption or
substitution for, outstanding awards or obligations to grant future awards in connection with the Company or a Related Entity acquiring another entity, an interest in another entity or an additional interest in a Related Entity whether by merger,
stock purchase, asset purchase or other form of transaction. 
  
 (e) Deferral of Award Payment. Subject to Applicable Laws, the Administrator may establish one or more programs under the Plan to permit selected Grantees the opportunity to elect to defer receipt of
consideration upon exercise of an Award, satisfaction of performance criteria, or other event that absent the election would entitle the Grantee to payment or receipt of Shares or other consideration under an Award. The Administrator may establish
the election procedures, the timing of such elections, the mechanisms for payments of, and accrual of interest or other earnings, if any, on amounts, Shares or other consideration so deferred, and such other terms, conditions, rules and procedures
that the Administrator deems advisable for the administration of any such deferral program. 
  
 (f) Separate Programs. The Administrator may establish one or more separate programs under the Plan for the purpose of issuing
particular forms of Awards to one or more classes of Grantees on such terms and conditions as determined by the Administrator from time to time.  
  
 (g) Early Exercise. The Award Agreement may, but need not, include a provision whereby the Grantee may elect at any time while an
Employee, Director or Consultant 

  

 8 

 
to exercise any part or all of the Award prior to full vesting of the Award. Any unvested Shares received pursuant to such exercise may be subject to a
repurchase right in favor of the Company or a Related Entity or to any other restriction the Administrator determines to be appropriate. 
  
 (h) Term of Award. The term of each Award shall be the term stated in the Award Agreement. 
  
 (i) Transferability of Awards. Awards shall be
transferable (i) by will or by the laws of descent and distribution and (ii) during the lifetime of the Grantee, to the extent and in the manner authorized by the Administrator. Notwithstanding the foregoing, the Grantee may designate one or more
beneficiaries of the Grantee’s Option in the event of the Grantee’s death on a beneficiary designation form provided by the Administrator. 
  
 (j) Time of Granting Awards. The date of grant of an Award shall for all purposes be the date on which the Administrator makes the
determination to grant such Award, or such other date as is determined by the Administrator. 
  
 7. Award Exercise or Purchase Price, Consideration and Taxes. 
  
 (a) Exercise or Purchase Price. The exercise or purchase price, if any, for an Award shall be such price as is determined by the
Administrator. Notwithstanding the foregoing, in the case of an Award issued pursuant to Section 6(d), above, the exercise or purchase price for the Award shall be determined in accordance with the provisions of the relevant instrument evidencing
the agreement to issue such Award. 
  
 (b)
Consideration. Subject to Applicable Laws, the consideration to be paid for the Shares to be issued upon exercise or purchase of an Award including the method of payment, shall be determined by the Administrator. In addition to any other
types of consideration the Administrator may determine, the Administrator is authorized to accept as consideration for Shares issued under the Plan the following: 
  
 (i) cash; 
  
 (ii) check; 
  
 (iii) surrender of Shares or delivery of a properly executed form of attestation of ownership of Shares as the Administrator may require
which have a Fair Market Value on the date of surrender or attestation equal to the aggregate exercise price of the Shares as to which said Award shall be exercised, provided, however, that Shares acquired under the Plan or any other equity
compensation plan or agreement of the Company must have been held by the Grantee for a period of more than six (6) months (and not used for another Award exercise by attestation during such period); 
  
 (iv) with respect to Options, payment through a
broker-dealer sale and remittance procedure pursuant to which the Grantee (A) shall provide written instructions to a Company designated brokerage firm to effect the immediate sale of some or all of the purchased Shares and remit to the Company
sufficient funds to cover the aggregate exercise price payable for the purchased Shares and (B) shall provide written directives to the Company to deliver the 

  

 9 

 
certificates for the purchased Shares directly to such brokerage firm in order to complete the sale transaction; or 
  
 (v) any combination of the foregoing methods of payment.

  
 (c) Taxes. No Shares shall be
delivered under the Plan to any Grantee or other person until such Grantee or other person has made arrangements acceptable to the Administrator for the satisfaction of any non-U.S., federal, state, or local income and employment tax withholding
obligations. Upon exercise of an Award the Company shall withhold or collect from Grantee an amount sufficient to satisfy such tax obligations. 
  
 8. Exercise of Award. 
  
 (a) Procedure for Exercise; Rights as a Shareholder. 
  
 (i) Any Award granted hereunder shall be exercisable at such times and under such conditions as determined
by the Administrator under the terms of the Plan and specified in the Award Agreement. 
 (ii) An Award shall be deemed to be
exercised when written notice of such exercise has been given to the Company in accordance with the terms of the Award by the person entitled to exercise the Award and full payment for the Shares with respect to which the Award is exercised,
including, to the extent selected, use of the broker-dealer sale and remittance procedure to pay the purchase price as provided in Section 7(b)(iv). 
  
 (b) Exercise of Award Following Termination of Continuous Service. 
  
 (i) An Award may not be exercised after the termination date of such Award set forth in the Award Agreement
and may be exercised following the termination of a Grantee’s Continuous Service only to the extent provided in the Award Agreement. 
  
 (ii) Where the Award Agreement permits a Grantee to exercise an Award following the termination of the Grantee’s Continuous Service
for a specified period, the Award shall terminate to the extent not exercised on the last day of the specified period or the last day of the original term of the Award, whichever occurs first. 
  
 9. Conditions Upon Issuance of Shares. 
  
 (a) 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 Applicable Laws, and shall be further subject to the approval of counsel for the Company with respect to such compliance.

  
 (b) As a condition to the exercise of an
Award, the Company may require the person exercising such Award 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 Applicable Laws. 
  

 10 

 10. Adjustments Upon Changes in Capitalization. Subject to any required action by the shareholders
of the Company, the number of Shares covered by each outstanding Award, and the number of Shares which have been authorized for issuance under the Plan but as to which no Awards have yet been granted or which have been returned to the Plan, the
exercise or purchase price of each such outstanding Award, as well as any other terms that the Administrator determines require adjustment shall be proportionately adjusted for (i) any increase or decrease in the number of issued Shares resulting
from a stock split, reverse stock split, stock dividend, combination or reclassification of the Shares, or similar transaction affecting the Shares, (ii) any other increase or decrease in the number of issued Shares effected without receipt of
consideration by the Company, or (iii) as the Administrator may determine in its discretion, any other transaction with respect to Common Stock including a corporate merger, consolidation, acquisition of property or stock, separation (including a
spin-off or other distribution of stock or property), reorganization, liquidation (whether partial or complete) or any similar transaction; 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 and its determination shall be final, binding and conclusive. Except as the Administrator determines, 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 hereof shall be made with respect to, the number or price of Shares subject to an Award. 
  
 11. Corporate Transactions and Changes in Control. 
  
 (a) Termination of Award to Extent Not Assumed in
Corporate Transaction. Effective upon the consummation of a Corporate Transaction, all outstanding Awards under the Plan shall terminate. However, all such Awards shall not terminate to the extent they are Assumed in connection with the
Corporate Transaction. 
  
 (b) Acceleration of
Award Upon Corporate Transaction or Change in Control. 
  
 (i) Corporate Transaction. Except as provided otherwise in an individual Award Agreement, in the event of a Corporate Transaction, for the portion of each Award that is neither Assumed nor Replaced, such
portion of the Award shall automatically become fully vested and exercisable and be released from any repurchase or forfeiture rights (other than repurchase rights exercisable at fair market value) for all of the Shares at the time represented by
such portion of the Award, immediately prior to the specified effective date of such Corporate Transaction. 
  
 (ii) Change in Control. Except as provided otherwise in an individual Award Agreement, in the event of a Change in Control (other
than a Change in Control which also is a Corporate Transaction), each Award which is at the time outstanding under the Plan automatically shall become fully vested and exercisable and be released from any repurchase or forfeiture rights (other than
repurchase rights exercisable at fair market value), immediately prior to the specified effective date of such Change in Control, for all of the Shares at the time represented by such Award. 
  

 11 

 12. Effective Date and Term of Plan. The Plan shall become effective upon its adoption by the
Board. It shall continue in effect for a term of ten (10) years unless sooner terminated. 
  
 13. Amendment, Suspension or Termination of the Plan. 
  
 (a) The Board may at any time amend, suspend or terminate the Plan. 
  
 (b) No Award may be granted during any suspension of the Plan or after termination of the Plan. 

 
 (c) No suspension or termination of the Plan (including
termination of the Plan under Section 12, above) shall adversely affect any rights under Awards already granted to a Grantee. 
  
 14. Reservation of Shares. 
  
 (a) The Company, during the term of the Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to
satisfy the requirements of the Plan. 
  
 (b) The
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. 
  
 15. No Effect on Terms of Employment Relationship. The Plan shall not confer upon any Grantee any right with respect to the Grantee’s
Continuous Service, nor shall it interfere in any way with his or her right or the right of the Company or any Related Entity to terminate the Grantee’s Continuous Service at any time, with or without Cause, and with or without notice. The
ability of the Company or any Related Entity to terminate the employment of a Grantee who is employed at will or otherwise is in no way affected by its determination that the Grantee’s Continuous Service has been terminated for Cause for the
purposes of this Plan. 
  
 16. No Effect on Retirement and
Other Benefit Plans. Except as specifically provided in a retirement or other benefit plan of the Company or a Related Entity, Awards shall not be deemed compensation for purposes of computing benefits or contributions under any retirement plan
of the Company or a Related Entity, and shall not affect any benefits under any other benefit plan of any kind or any benefit plan subsequently instituted under which the availability or amount of benefits is related to level of compensation. The
Plan is not a “Retirement Plan” or “Welfare Plan” under the Employee Retirement Income Security Act of 1974, as amended. 
  
 17. Unfunded Obligation. Grantees shall have the status of general unsecured creditors of the Company. Any amounts payable to Grantees pursuant to
the Plan shall be unfunded and unsecured obligations for all purposes, including, without limitation, Title I of the Employee Retirement Income Security Act of 1974, as amended. Neither the Company nor any Related Entity shall be required to
segregate any monies from its general funds, or to create any 

  

 12 

 
trusts, or establish any special accounts with respect to such obligations. The Company shall retain at all times beneficial ownership of any investments,
including trust investments, which the Company may make to fulfill its payment obligations hereunder. Any investments or the creation or maintenance of any trust or any Grantee account shall not create or constitute a trust or fiduciary relationship
between the Administrator, the Company or any Related Entity and a Grantee, or otherwise create any vested or beneficial interest in any Grantee or the Grantee’s creditors in any assets of the Company or a Related Entity. The Grantees shall
have no claim against the Company or any Related Entity for any changes in the value of any assets that may be invested or reinvested by the Company with respect to the Plan. 
  

 13

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