Document:

Prepared by R.R. Donnelley Financial -- 1995 Stock Purchase Plan

  Exhibit 10.16 
  ELANTEC SEMICONDUCTOR, INC. 
  1995 EMPLOYEE STOCK PURCHASE PLAN

  As Adopted August 23, 1995 
 and Amended April 18, 2000 
  1.     ESTABLISHMENT OF PLAN 
             Elantec Semiconductor, Inc., a Delaware corporation (the “ Company ”), proposes to grant options for purchase of the Company’s Common Stock, par
value $0.01, to eligible employees of the Company and its Subsidiaries (as hereinafter defined) pursuant to this Employee Stock Purchase Plan (this “ Plan ”). For purposes of this Plan, “Parent Corporation” and
“Subsidiary” (collectively, “ Subsidiaries ”) shall have the same meanings as “parent corporation” and “subsidiary corporation” in Sections 424(e) and 424(f), respectively, of the Internal Revenue Code
of 1986, as amended (the “ Code ”). The Company intends this Plan to qualify as an “employee stock purchase plan” under Section 423 of the Code (including any amendments to or replacements of such Section), and this Plan
shall be so construed. Any term not expressly defined in this Plan but defined for purposes of Section 423 of the Code shall have the same definition herein. A total of 450,000 shares of the Company’s Common Stock is reserved for issuance under
this Plan. Such number shall be subject to adjustments effected in accordance with Section 14 of this Plan.
  2.     PURPOSES 
             The purpose of this Plan is to provide employees of the Company and Subsidiaries designated by the Board of Directors of the Company (the “ Board ”) as
eligible to participate in this Plan with a convenient means of acquiring an equity interest in the Company through payroll deductions, to enhance such employees’ sense of participation in the affairs of the Company and Subsidiaries, and to
provide an incentive for continued employment. “ Participating Subsidiaries ” are Parent Corporations or Subsidiaries that the Board designates from time to time as corporations that shall participate in this Plan.
  3.     ADMINISTRATION 
             This Plan may be administered by the Board or by a committee
appointed by the Board (the “ Committee ”) consisting of at least two (2) members of the Board, each of whom is a Non-Employee Director as defined in Rule 16b-3(i) of the Securities Exchange Act of 1934, as amended (the “
Exchange Act ”). As used in this Plan, references to the “Committee” shall mean either such committee or the Board if no committee has been established. Subject to the provisions of this Plan and the limitations of Section 423 of
the Code or any successor provision in the Code, all questions of interpretation or application of this Plan shall be determined by the Board and its decisions shall be final and binding upon all participants. Members of the Board

 

 
 Elantec Semiconductor, Inc.
1995 Employee Stock Purchase Plan
 shall receive no compensation for their services in connection with the
administration of this Plan, other than standard fees as established from time to time by the Board for services rendered by Board members serving on Board committees. All expenses incurred in connection with the administration of this Plan shall be
paid by the Company.
  4.     ELIGIBILITY 
             Any employee of the Company or
the Subsidiaries is eligible to participate in an Offering Period (as hereinafter defined) under this Plan except the following:
             (a)   employees who are not employed by the Company or Subsidiaries one (1) month before the beginning of such Offering Period;
             (b)   employees who are customarily employed for less than twenty (20) hours per week;
             (c)   employees who are customarily employed for less than five (5) months in a calendar year;
             (d)   employees who, together with any other person whose stock would be attributed to such employee pursuant to Section 424(d) of the Code, own stock or
hold options to purchase stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or any of its Subsidiaries or who, as a result of being granted an option under this Plan with
respect to such Offering Period, would own stock or hold options to purchase stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or any of its Subsidiaries.
             (e)   individuals who provide services to the Company or any of its Participating Subsidiaries as independent contractors who are
reclassified as common law employees for any reason  except   for  federal income and employment tax purposes.
  5.     OFFERING DATES 
             The Offering Periods of this Plan (the “ Offering Period ”) shall be of 6 months duration. Payroll deductions of each participant are accumulated under
this Plan during the Offering Periods. The first day of each Offering Period is referred to as the “Offering Date”. The last business day of each Offering Period is referred to as the “Purchase Date”. The Board shall have the
power to determine the dates of Offering Periods or change the duration of Offering Periods without stockholder approval.
  6.     PARTICIPATION IN THIS PLAN 
             Eligible employees may become participants in an Offering Period under this Plan on the first Offering Date after satisfying the eligibility requirements
by delivering a subscription agreement to the Company’s or Subsidiary’s (whichever employs such employee) treasury department (the “ Treasury Department ”) not later than the 15th day of the month before such Offering Date
unless a later time for filing the subscription agreement authorizing payroll deduc-
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1995 Employee Stock Purchase Plan
 tions is set by the Board for all eligible employees with respect to a given
Offering Period. An eligible employee who does not deliver a subscription agreement to the Treasury Department by such date after becoming eligible to participate in such Offering Period shall not participate in that Offering Period or any
subsequent Offering Period unless such employee enrolls in this Plan by filing a subscription agreement with the Treasury Department not later than the 15th day of the month preceding a subsequent Offering Date. Once an employee becomes a
participant in an Offering Period, such employee will automatically participate in the Offering Period commencing immediately following the last day of the prior Offering Period unless the employee withdraws or is deemed to withdraw from this Plan
or terminates further participation in the Offering Period as set forth in Section 11 below. Such participant is not required to file any additional subscription agreement in order to continue participation in this Plan.
  7.     GRANT OF OPTION ON ENROLLMENT 
             Enrollment by an eligible employee in this Plan
with respect to an Offering Period will constitute the grant (as of the Offering Date) by the Company to such employee of an option to purchase on the Purchase Date up to that number of shares of Common Stock of the Company determined by dividing
(a) the amount accumulated in such employee’s payroll deduction account during such Offering Period by (b) the lower of (i) eighty-five percent (85%) of the fair market value of a share of the Company’s Common Stock on the Offering Date
(but in no event less than the par value of a share of the Company’s Common Stock) or (ii) eighty-five percent (85%) of the fair market value of a share of the Company’s Common Stock on the Purchase Date (but in no event less than the
par value of a share of the Company’s Common Stock); provided, however, that the number of shares of the Company’s Common Stock subject to any option granted pursuant to this Plan shall not exceed the lesser of (a) the maximum number of
shares set by the Board pursuant to Section 10(d) below with respect to the applicable Offering Period, or (b) the maximum number of shares which may be purchased pursuant to Section 10(b) below with respect to the applicable Offering Period. The
fair market value of a share of the Company’s Common Stock shall be determined as provided in Section 8 hereof.
  8.     PURCHASE PRICE 
             The purchase price per share at which a share of Common Stock will be sold in any Offering Period shall be eighty-five percent (85%) of the lesser of:
             (a)   The fair market value on the Offering Date; or
             (b)   The fair market value on the Purchase Date;
 provided, however, that in no event may the purchase price per
share of the Company’s Common Stock be below the par value per share of the Company’s Common Stock.
             For purposes of this Plan,
the term “fair market value” on a given date shall mean the fair market value of the Company’s Common Stock, par value $0.01, as determined by the Committee from time to time in good faith. If such Common Stock is then quoted on the
Nasdaq National Market, its last reported sale price on the Nasdaq National Market or, if no such reported sale 
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1995 Employee Stock Purchase Plan
 takes place on such date, the average of the closing bid and asked prices. If such
Common Stock is publicly traded and is then listed on a national securities exchange, the last reported sale price or, if no such reported sale takes place on such date, the average of the closing bid and asked prices on the principal national
securities exchange on which the Common Stock is listed or admitted to trading. If such Common Stock is publicly traded but is not quoted on the Nasdaq National Market nor listed or admitted to trading on a national securities exchange, the average
of the closing bid and asked prices on such date, as reported by  The Wall Street Journal  for the over-the-counter market.
  9.     PAYMENT OF PURCHASE PRICE; CHANGES IN PAYROLL
DEDUCTIONS; ISSUANCE OF SHARES 
             (a)   The purchase price of the shares is accumulated by regular payroll deductions made
during each Offering Period. The deductions are made as a percentage of the participant’s compensation in one percent (1%) increments not less than two percent (2%) nor greater than ten percent (10%) or such lower limit set by the Committee.
Compensation shall mean all W-2 compensation, including, but not limited to base salary, wages, commissions, overtime, shift premiums and bonuses, plus draws against commissions; provided, however, that for purposes of determining a
participant’s compensation, any election by such participant to reduce his or her regular cash remuneration under Sections 125 or 401(k) of the Code shall be treated as if the participant did not make such election. Payroll deductions shall
commence on the first payday following the Offering Date and shall continue to the end of the Offering Period unless sooner altered or terminated as provided in this Plan.
             (b)   A participant may lower (but not increase) the rate of payroll deductions during an Offering Period by filing with the Treasury Department a new
authorization for payroll deductions, in which case the new rate shall become effective for the next payroll period commencing more than fifteen (15) days after the Treasury Department’s receipt of the authorization and shall continue for the
remainder of the Offering Period unless changed as described below. Such change in the rate of payroll deductions may be made at any time during an Offering Period, but not more than one (1) change may be made effective during any Offering Period. A
participant may increase or decrease the rate of payroll deductions for any subsequent Offering Period by filing with the Treasury Department a new authorization for payroll deductions not later than the 15th day of the month before the beginning of
such Offering Period.
             (c)   All payroll deductions made for a participant are credited to his or her account under this Plan
and are deposited with the general funds of the Company. No interest accrues on the payroll deductions. All payroll deductions received or held by the Company may be used by the Company for any corporate purpose, and the Company shall not be
obligated to segregate such payroll deductions.
             (d)   On each Purchase Date, so long as this Plan remains in effect and
provided that the participant has not submitted a signed and completed withdrawal form before that date which notifies the Company that the participant wishes to withdraw from that Offering Period under this Plan and have all payroll deductions
accumulated in the account maintained on behalf of the participant as of that date returned to the participant, the Company shall apply the funds then in the 
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 Elantec Semiconductor, Inc.
1995 Employee Stock Purchase Plan
 participant’s account to the purchase of whole shares of Common Stock
reserved under the option granted to such participant with respect to the Offering Period to the extent that such option is exercisable on the Purchase Date. The purchase price per share shall be as specified in Section 8 of this Plan. Any cash
remaining in a participant’s account after such purchase of shares shall be refunded to such participant in cash, without interest. In the event that this Plan has been oversubscribed, all funds not used to purchase shares on the Purchase Date
shall be returned to the participant, without interest. No Common Stock shall be purchased on a Purchase Date on behalf of any employee whose participation in this Plan has terminated prior to such Purchase Date.
             (e)   As promptly as practicable after the Purchase Date, the Company shall arrange the delivery to each participant of a certificate representing the
shares purchased upon exercise of his option.
             (f)   During a participant’s lifetime, such participant’s option to
purchase shares hereunder is exercisable only by him or her. The participant will have no interest or voting right in shares covered by his or her option until such option has been exercised. Shares to be delivered to a participant under this Plan
will be registered in the name of the participant or in the name of the participant and his or her spouse.
  10.     LIMITATIONS ON SHARES TO BE PURCHASED 
             (a)   No employee shall be entitled to purchase stock under this Plan at a rate which, when aggregated with his or her rights to purchase
stock under all other employee stock purchase plans of the Company or any Subsidiary, exceeds $25,000 in fair market value, determined as of the Offering Date (or such other limit as may be imposed by the Code) for each calendar year in which the
employee participates in this Plan.
             (b)   No more than two hundred percent (200%) of the number of shares determined by
using eighty-five percent (85%) of the fair market value of a share of the Company’s Common Stock on the Offering Date as the denominator may be purchased by a participant on any single Purchase Date.
             (c)   Unless otherwise determined by the Board, no more than a total of 112,500 shares may be purchased by all employees participating in this Plan on any
one Purchase Date. If the number of shares to be purchased on a Purchase Date by all employees participating in this Plan exceeds 112,500 shares, the Company will make a pro rata allocation of the 112,500 shares in as uniform manner as shall be
practicable and as the Board shall determine to be equitable. In such event, the Company shall give written notice of such reduction of the number of shares to be purchased under a participant’s option to each participant affected
thereby.
             (d)   No employee shall be entitled to purchase more than the Maximum Share Amount (as defined below) on any single
Purchase Date. Not less than thirty (30) days prior to the commencement of any Offering Period, the Board may, in its sole discretion, set a maximum number of shares which may be purchased by any employee at any single Purchase Date (hereinafter the
“ Maximum Share Amount ”). In no event shall the Maximum Share Amount exceed the amounts permitted under Section 10(b) above. If a new Maximum Share Amount is
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1995 Employee Stock Purchase Plan
 set, then all participants must be notified of such Maximum Share Amount not less
than fifteen (15) days prior to the commencement of the next Offering Period. Once the Maximum Share Amount is set, it shall continue to apply with respect to all succeeding Purchase Dates and Offering Periods unless revised by the Board as set
forth above.
             (e)   If the number of shares to be purchased on a Purchase Date by all employees participating in this Plan
exceeds the number of shares then available for issuance under this Plan, then the Company will make a pro rata allocation of the remaining shares in as uniform a manner as shall be reasonably practicable and as the Board shall determine to be
equitable. In such event, the Company shall give written notice of such reduction of the number of shares to be purchased under a participant’s option to each participant affected thereby. 
             (f)   Any payroll deductions accumulated in a participant’s account which are not used to purchase stock due to the limitations in this Section 10
shall be returned to the participant as soon as practicable after the end of the Offering Period, without interest.
  11.     WITHDRAWAL 
             (a)   Each participant may withdraw from an Offering Period under this Plan by signing and delivering to the Treasury Department a written notice to that
effect on a form provided for such purpose. Such withdrawal may be elected at any time at least fifteen (15) days prior to the end of an Offering Period.
             (b)   Upon withdrawal from this Plan, the accumulated payroll deductions shall be returned to the withdrawn participant, without interest, and his or her
interest in this Plan shall terminate. In the event a participant voluntarily elects to withdraw from this Plan, he or she may not resume his or her participation in this Plan during the same Offering Period, but he or she may participate in any
Offering Period under this Plan which commences on a date subsequent to such withdrawal by filing a new authorization for payroll deductions in the same manner as set forth above for initial participation in this Plan.
  12.     TERMINATION OF EMPLOYMENT 
             Termination of a participant’s employment for any reason,
including retirement, death or the failure of a participant to remain an eligible employee, immediately terminates his or her participation in this Plan. In such event, the payroll deductions credited to the participant’s account will be
returned to him or her or, in the case of his or her death, to his or her legal representative, without interest. For purposes of this Section 12, an employee will not be deemed to have terminated employment or failed to remain in the continuous
employ of the Company in the case of sick leave, military leave, or any other leave of absence approved by the Board; provided that such leave is for a period of not more than ninety (90) days or reemployment upon the expiration of such leave is
guaranteed by contract or statute.
  13.     RETURN OF PAYROLL DEDUCTIONS 
             In the event a participant’s interest in this Plan is terminated by withdrawal, termination of employment or otherwise, or in the event this Plan is terminated by
the Board, the Company shall 
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1995 Employee Stock Purchase Plan
 promptly deliver to the participant all payroll deductions credited to such
participant’s account. No interest shall accrue on the payroll deductions of a participant in this Plan.
  14.     CAPITAL CHANGES 
             Subject to any required action by the stockholders of the Company, the number of shares of Common Stock covered by each option under this Plan which has not yet been
exercised and the number of shares of Common Stock which have been authorized for issuance under this Plan but have not yet been placed under option (collectively, the “ Reserves ”), as well as the price per share of Common Stock
covered by each option under this Plan which has not yet been exercised, shall be proportionately adjusted for any increase or decrease in the number of issued and outstanding shares of Common Stock of the Company resulting from a stock split or the
payment of a stock dividend (but only on the Common Stock) or any other increase or decrease in the number of issued and outstanding shares of Common Stock effected without receipt of any 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”; and provided, further, that the price per share of Common Stock shall not be reduced below its par value
per share. Such adjustment shall be made by the Board, whose determination shall be final, binding and conclusive. Except as expressly provided herein, no issue by the Company of shares of stock of any class, or securities convertible into shares of
stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to an option.
             In the event of the proposed dissolution or liquidation of the Company, the Offering Period will terminate immediately prior to the consummation of such proposed action,
unless otherwise provided by the Board. The Board may, in the exercise of its sole discretion in such instances, declare that the options under this Plan shall terminate as of a date fixed by the Board and give each participant the right to exercise
his or her option as to all of the optioned stock, including shares which would not otherwise be exercisable. In the event of a proposed sale of all or substantially all of the assets of the Company, or the merger or consolidation of the Company
with or into another corporation, each option under this Plan shall be assumed or an equivalent option shall be substituted by such successor corporation or a parent or subsidiary of such successor corporation, unless the Board determines, in the
exercise of its sole discretion and in lieu of such assumption or substitution, that the participant shall have the right to exercise the option as to all of the optioned stock. If the Board makes an option exercisable in lieu of assumption or
substitution in the event of a merger, consolidation or sale of assets, the Board shall notify the participant that the option shall be fully exercisable for a period of twenty (20) days from the date of such notice, and the option will terminate
upon the expiration of such period.
             The Board may, if it so determines in the exercise of its sole discretion, also make provision for
adjusting the Reserves, as well as the price per share of Common Stock covered by each outstanding option, in the event that the Company effects one or more reorganizations, recapitalizations, rights offerings or other increases or reductions of
shares of its outstanding Common Stock, or in the event of the Company being consolidated with or merged into any other
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1995 Employee Stock Purchase Plan
 corporation; provided, that the price per share of Common Stock shall not be
reduced below its par value per share.
  15.     NON-ASSIGNABILITY 
             Neither payroll deductions credited to a participant’s account nor any rights with regard to the exercise of an option or to receive shares under this Plan may be
assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution or as provided in Section 22 hereof) by the participant. Any such attempt at assignment, transfer, pledge or other
disposition shall be void and without effect.
  16.     REPORTS 
             Individual accounts will be maintained for each participant in this Plan. Each participant shall receive promptly after the end of each Offering Period a report of his or
her account setting forth the total payroll deductions accumulated, the number of shares purchased, the per share price thereof and the remaining cash balance, if any, carried forward to the next Offering Period.
  17.     NOTICE OF DISPOSITION 
             Each participant shall notify the Company if the participant disposes
of any of the shares purchased in any Offering Period pursuant to this Plan if such disposition occurs within two (2) years from the Offering Date or within one (1) year from the Purchase Date on which such shares were purchased (the “
Notice Period ”). Unless such participant is disposing of any of such shares during the Notice Period, such participant shall keep the certificates representing such shares in his or her name (and not in the name of a nominee) during the
Notice Period. The Company may, at any time during the Notice Period, place a legend or legends on any certificate representing shares acquired pursuant to this Plan requesting the Company’s transfer agent to notify the Company of any transfer
of the shares. The obligation of the participant to provide such notice shall continue notwithstanding the placement of any such legend on the certificates.
  18.     NO RIGHTS TO
CONTINUED EMPLOYMENT 
             Neither this Plan nor the grant of any option hereunder shall confer any right on any employee to remain in the
employ of the Company or any Subsidiary, or restrict the right of the Company or any Subsidiary to terminate such employee’s employment.
  19.     EQUAL RIGHTS AND PRIVILEGES

             All eligible employees shall have equal rights and privileges with respect to this Plan so that this Plan qualifies as an
“employee stock purchase plan” within the meaning of Section 423 or any successor provision of the Code and the related regulations. Any provision of this Plan which is inconsistent with Section 423 or any successor provision of the Code
shall, without further act or amendment by the Company or the Board, be reformed to comply with the requirements of Section 423. This Section 19 shall take precedence over all other provisions in this Plan.
 
20.     NOTICES 
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 Elantec Semiconductor, Inc.
1995 Employee Stock Purchase Plan
             All
notices or other communications by a participant to the Company under or in connection with this Plan shall be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the
Company for the receipt thereof.
  21.     TERM; STOCKHOLDER APPROVAL 
             This Plan became effective on the effective date of the Company’s registration statement filed with, and declared effective by, the Securities and Exchange
Commission (the “ SEC ”) under the Securities Act of 1933, as amended (the “ Securities Act ”), for the Company’s initial public offering (the “ Registration Statement ”). This Plan was
approved by the stockholders of the Company, in accordance with applicable corporate law, within twelve (12) months after the date this Plan was adopted by the Board. This Plan shall continue until the earlier to occur of (a) termination of this
Plan by the Board (which termination may be effected by the Board at any time), (b) issuance of all of the shares of Common Stock reserved for issuance under this Plan, or (c) ten (10) years from the adoption of this Plan by the Board.
  22.     DESIGNATION OF BENEFICIARY 
             (a)   A participant may file a
written designation of a beneficiary who is to receive any shares and cash, if any, from the participant’s account under this Plan in the event of such participant’s death subsequent to the end of an Offering Period but prior to delivery
to him of such shares and cash. In addition, a participant may file a written designation of a beneficiary who is to receive any cash from the participant’s account under this Plan in the event of such participant’s death prior to a
Purchase Date.
             (b)   Such designation of beneficiary may be changed by the participant at any time by written notice. In the
event of the death of a participant and in the absence of a beneficiary validly designated under this Plan who is living at the time of such participant’s death, the Company shall deliver such shares or cash to the executor or administrator of
the estate of the participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such shares or cash to the spouse or to any one or more dependents or relatives
of the participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate.
  23.     CONDITIONS UPON ISSUANCE OF SHARES;
LIMITATION ON SALE OF SHARES 
             Shares shall not be issued with respect to an option unless the exercise of such option and the issuance
and delivery of such shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act, the Exchange Act, the rules and regulations promulgated thereunder, and the
requirements of any stock exchange or automated quotation system 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.
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1995 Employee Stock Purchase Plan
  24.     APPLICABLE LAW 
             This Plan shall be governed by the substantive laws (excluding the conflict of laws rules) of the State of Delaware.
  25.     AMENDMENT OR TERMINATION OF THIS PLAN 
             The Board may at any time amend, terminate or the
extend the term of this Plan, except that any such termination cannot affect options previously granted under this Plan, nor may any amendment make any change in an option previously granted which would adversely affect the right of any participant,
nor may any amendment be made without approval of the stockholders of the Company obtained in accordance with Section 21 hereof within twelve (12) months of the adoption of such amendment (or earlier if required by Section 21) if such amendment
would:
             (a)   increase the number of shares that may be issued under this Plan; or
             (b)   change the designation of the employees (or class of employees) eligible for participation in this Plan.
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-Prepared by R.R. Donnelley Financial -- 2001 Equity Incentive Plan

  EXHIBIT 10.17 
  ELANTEC SEMICONDUCTOR, INC. 
  2001 EQUITY INCENTIVE PLAN 
 As Adopted November 2, 2000
 and Amended May 2, 2001
              1.
     PURPOSE .  The purpose of this Plan is to provide incentives to attract, retain and motivate eligible persons whose present and potential contributions are important to the success of the Company, its Parent and
Subsidiaries, by offering them an opportunity to participate in the Company’s future performance through awards of Options, Restricted Stock and Stock Bonuses. Capitalized terms not defined in the text are defined in Section 23.
              2.      SHARES SUBJECT TO THE PLAN . 
                         2.1    Number of Shares Available . Subject to Sections 2.2 and 18, the
total number of Shares reserved and available for grant and issuance pursuant to this Plan will be 1,050,000 Shares plus Shares that are subject to: (a) issuance upon exercise of an Option but cease to be subject to such Option for any reason other
than exercise of such Option; (b) an Award granted hereunder but are forfeited or are repurchased by the Company at the original issue price; and (c) an Award that otherwise terminates without Shares being issued. At all times the Company shall
reserve and keep available a sufficient number of Shares as shall be required to satisfy the requirements of all outstanding Options granted under this Plan and all other outstanding but unvested Awards granted under this Plan.
                         2.2    Adjustment of Shares . In the event that the number
of outstanding shares is changed by a stock dividend, recapitalization, stock split, reverse stock split, subdivision, combination, reclassification or similar change in the capital structure of the Company without consideration, then (a) the number
of Shares reserved for issuance under this Plan, (b) the number of Shares that may be granted pursuant to Sections 3 below, (c) the Exercise Prices of and number of Shares subject to outstanding Options, and (d) the number of Shares subject to other
outstanding Awards will be proportionately adjusted in compliance with applicable securities laws; provided, however, that fractions of a Share will not be issued but will either be replaced by a cash payment equal to the Fair Market Value of such
fraction of a Share or will be rounded up to the nearest whole Share, as determined by the Committee.
              3.     
ELIGIBILITY .  ISOs (as defined in Section 5 below) may be granted only to employees (including officers and directors who are also employees) of the Company or of a Parent or Subsidiary of the Company. All other Awards may be granted to
employees, officers, directors, consultants, independent contractors and advisors of the Company or any Parent or Subsidiary of the Company; provided such consultants, contractors and advisors render bona fide services not in connection with the
offer and sale of securities in a capital-raising transaction. No person will be eligible to receive more than 200,000 Shares in any calendar year under this Plan pursuant to the grant of Awards hereunder, other than new employees of the Company or
of a Parent or Subsidiary of the Company (including new employees who are also officers and directors of the Company or any Parent or Subsidiary of the Company), who are eligible to receive up to a maximum of 800,000 Shares in the calendar year in
which they commence their employment. A person may be granted more than one Award under this Plan.
              4.     
ADMINISTRATION . 
                         4.1    Committee
Authority . This Plan will be administered by the Committee or by the Board acting as the Committee. Subject to the general purposes, terms and conditions of this Plan, and to the direction of the Board, the Committee will have full power to
implement and carry out this Plan. The Committee will have the authority to:

   

	 	(a)	 	construe and interpret this Plan, any Award Agreement and any other agreement or document executed pursuant to this Plan;

	 	(b)	 	prescribe, amend and rescind rules and regulations relating to this Plan or any Award;
	 	 	 
	 	(c)	 	select persons to receive Awards;
	 	 	 
	 	(d)	 	determine the form and terms of Awards;
	 	 	 
	 	(e)	 	determine the number of Shares or other consideration subject to Awards;
	 	 	 
	 	(f)	 	determine whether Awards will be granted singly, in combination with, in tandem with, in replacement of, or as alternatives to, other Awards under this Plan or any other incentive or compensation plan of the Company or
any Parent or Subsidiary of the Company;
	 	 	 
	 	(g)	 	grant waivers of Plan or Award conditions;
	 	 	 
	 	(h)	 	determine the vesting, exercisability and payment of Awards;
	 	 	 
	 	(i)	 	correct any defect, supply any omission or reconcile any inconsistency in this Plan, any Award or any Award Agreement;
	 	 	 
	 	(j)	 	determine whether an Award has been earned; and
	 	 	 
	 	(k)	 	make all other determinations necessary or advisable for the administration of this Plan.

                         4.2    Committee Discretion . Any determination made by the Committee with
respect to any Award will be made in its sole discretion at the time of grant of the Award or, unless in contravention of any express term of this Plan or Award, at any later time, and such determination will be final and binding on the Company and
on all persons having an interest in any Award under this Plan. The Committee may delegate to one or more officers of the Company the authority to grant an Award under this Plan to Participants who are not Insiders of the Company.
              5.      OPTIONS . The Committee may grant Options to eligible persons and will determine whether such Options will
be Incentive Stock Options within the meaning of the Code  ( “ISO”  ) or Nonqualified Stock Options (  “NQSOs”  ), the number of Shares subject to the Option, the Exercise Price of the Option, the
period during which the Option may be exercised, and all other terms and conditions of the Option, subject to the following:
                         5.1    Form of Option Grant . Each Option granted under this Plan will be
evidenced by an Award Agreement which will expressly identify the Option as an ISO or an NQSO (  “Stock Option Agreement”  ), and will be in such form and contain such provisions (which need not be the same for each
Participant) as the Committee may from time to time approve, and which will comply with and be subject to the terms and conditions of this Plan.
                         5.2    Date of Grant . The date of grant of an Option will be the date on
which the Committee makes the determination to grant such Option, unless otherwise specified by the Committee. The Stock Option Agreement and a copy of this Plan will be delivered to the Participant within a reasonable time after the granting of the
Option.
                         5.3    Exercise Period . Options may
be exercisable within the times or upon the events determined by the Committee as set forth in the Stock Option Agreement governing such Option; provided, however, that no Option will be exercisable after the expiration of ten (10) years from the
date the Option is granted; and provided further that no ISO granted to a person who directly or by attribution owns more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of any Parent or Subsidiary
of the Company ( “Ten Percent Stockholder” ) will be exercisable after the expiration of five (5) years from the date the ISO is granted. The Committee also may provide for Options to become exercisable at one time or from time to
time, periodically or otherwise, in such number of Shares or percentage of Shares as the Committee determines.
 2

 
                         5.4    Exercise Price
. The Exercise Price of an Option will be determined by the Committee when the Option is granted but may not be less than 100% of the Fair Market Value of the Shares on the date of grant except that the exercise price may be reduced to no less
than 85% of the Fair Market Value of the Shares on the date of grant if the discount is expressly made in lieu of a reasonable amount of salary or cash bonus, as determined in the good faith discretion of the Committee. Notwithstanding the
foregoing: (i) the Exercise Price of an ISO will be not less than 100% of the Fair Market Value of the Shares on the date of grant; and (ii) the Exercise Price of any ISO granted to a Ten Percent Stockholder will not be less than 110% of the Fair
Market Value of the Shares on the date of grant. Payment for the Shares purchased may be made in accordance with Section 8 of this Plan.
                         5.5    Method of Exercise . Options may be exercised only by delivery to the
Company of a written stock option exercise agreement (the   “Exercise Agreement”  ) in a form approved by the Committee (which need not be the same for each Participant), stating the number of Shares being purchased, the
restrictions imposed on the Shares purchased under such Exercise Agreement, if any, and such representations and agreements regarding Participant’s investment intent and access to information and other matters, if any, as may be required or
desirable by the Company to comply with applicable securities laws, together with payment in full of the Exercise Price for the number of Shares being purchased.
                         5.6    Termination . Notwithstanding the exercise periods set forth in the
Stock Option Agreement, exercise of an Option will always be subject to the following:

	 	(a)	 	If the Participant is Terminated for any reason except death or Disability, then the Participant may exercise such Participant’s Options only to the extent that such Options would have been exercisable upon the
Termination Date no later than three (3) months after the Termination Date (or such shorter or longer time period not exceeding five (5) years as may be (determined by the Committee, with any exercise beyond three (3) months after the Termination
Date deemed to be an NQSO), but in any event, no later than the expiration date of the Options.
	 	 	 
	 	(b)	 	If the Participant is Terminated because of Participant’s death or Disability (or the Participant dies within three (3) months after a Termination other than for Cause or because of Participant’s Disability),
then Participant’s Options may be exercised only to the extent that such Options would have been exercisable by Participant on the Termination Date and must be exercised by Participant (or Participant’s legal representative or authorized
assignee) no later than twelve (12) months after the Termination Date (or such shorter or longer time period not exceeding five (5) years as may be determined by the Committee, with any such exercise beyond (a) three (3) months after the Termination
Date when the Termination is for any reason other than the Participant’s death or disability, within the meaning of Section 22(e)(3) of the (Code, or (ii) twelve (12) months after the Termination Date when the Termination is for
Participant’s disability, within the meaning of Section 22(e)(3) of the Code, deemed to be an NQSO), but in any event no later than the expiration date of the Options.
	 	 	 
	 	(c)	 	If the Participant is terminated for Cause, then Participant’s Options shall expire on such Participant’s Termination Date, or at such later time and on such conditions as are determined by the
Committee.

 3

 
                         5.7    Limitations on
Exercise . The Committee may specify a reasonable minimum number of Shares that may be purchased on any exercise of an Option, provided that such minimum number will not prevent Participant from exercising the Option for the full number of
Shares for which it is then exercisable.
                         5.8   
Limitations on ISO . The aggregate Fair Market Value (determined as of the date of grant) of Shares with respect to which ISO are exercisable for the first time by a Participant during any calendar year (under this Plan or under any other
incentive stock option plan of the Company, Parent or Subsidiary of the Company) will not exceed $100,000. If the Fair Market Value of Shares on the date of grant with respect to which ISO are exercisable for the first time by a Participant during
any calendar year exceeds $100,000, then the Options for the first $100,000 worth of Shares to become exercisable in such calendar year will be ISO and the Options for the amount in excess of $100,000 that become exercisable in that calendar year
will be NQSOs. In the event that the Code or the regulations promulgated thereunder are amended after the Effective Date of this Plan to provide for a different limit on the Fair Market Value of Shares permitted to be subject to ISO, such different
limit will be automatically incorporated herein and will apply to any Options granted after the effective date of such amendment.
                         5.9    Modification, Extension or Renewal . Subject to the provisions of
Section 21, the Committee may modify, extend or renew outstanding Options and authorize the grant of new Options in substitution therefor, provided that any such action may not, without the written consent of a Participant, impair any of such
Participant’s rights under any Option previously granted. Any outstanding ISO that is modified, extended, renewed or otherwise altered will be treated in accordance with Section 424(h) of the Code. The Committee may reduce the Exercise Price of
outstanding Options without the consent of Participants affected by a written notice to them; provided, however, that the Exercise Price may not be reduced below the minimum Exercise Price that would be permitted under Section 5.4 of this Plan for
Options granted on the date the action is taken to reduce the Exercise Price and provided further that the Exercise Price may not be reduced without the prior approval of the Company’s shareholders.
                         5.10    No Disqualification . Notwithstanding any other provision in this
Plan, no term of this Plan relating to ISO will be interpreted, amended or altered, nor will any discretion or authority granted under this Plan be exercised, so as to disqualify this Plan under Section 422 of the Code or, without the consent of the
Participant affected, to disqualify any ISO under Section 422 of the Code.
              6.      RESTRICTED STOCK .
A Restricted Stock Award is an offer by the Company to sell to an eligible person Shares that are subject to restrictions. The Committee will determine to whom an offer will be made, the number of Shares the person may purchase, the price to be
paid (the   “Purchase Price”  ), the restrictions to which the Shares will be subject, and all other terms and conditions of the Restricted Stock Award, subject to the following:
                         6.1    Form of Restricted Stock Award . All purchases under a Restricted
Stock Award made pursuant to this Plan will be evidenced by an Award Agreement (  “Restricted Stock Purchase Agreement”  ) that will be in such form (which need not be the same for each Participant) as the Committee will from
time to time approve, and will comply with and be subject to the terms and conditions of this Plan. The offer of Restricted Stock will be accepted by the Participant’s execution and delivery of the Restricted Stock Purchase Agreement and full
payment for the Shares to the Company within thirty (30) days from the date the Restricted Stock Purchase Agreement is delivered to the person. If such person does not execute and deliver the Restricted Stock Purchase Agreement along with full
payment for the Shares to the Company within thirty (30) days, then the offer will terminate, unless otherwise determined by the Committee.
                         6.2    Purchase Price . The Purchase Price of Shares sold pursuant to a
Restricted Stock Award will be determined by the Committee on the date the Restricted Stock Award is granted, except in the case of a sale to a Ten Percent Stockholder, in which case the Purchase Price will be 100% of the Fair Market Value. Payment
of the Purchase Price may be made in accordance with Section 8 of this Plan.
 4

 
                         6.3    Terms of
Restricted Stock Awards . Restricted Stock Awards shall be subject to such restrictions as the Committee may impose. These restrictions may be based upon completion of a specified number of years of service with the Company or upon completion of
the performance goals as set out in advance in the Participant’s individual Restricted Stock Purchase Agreement. Restricted Stock Awards may vary from Participant to Participant and between groups of Participants. Prior to the grant of a
Restricted Stock Award, the Committee shall: (a) determine the nature, length and starting date of any Performance Period for the Restricted Stock Award; (b) select from among the Performance Factors to be used to measure performance goals, if any;
and (c) determine the number of Shares that may be awarded to the Participant. Prior to the payment of any Restricted Stock Award, the Committee shall determine the extent to which such Restricted Stock Award has been earned. Performance Periods may
overlap and Participants may participate simultaneously with respect to Restricted Stock Awards that are subject to different Performance Periods and having different performance goals and other criteria. Notwithstanding the foregoing, Restricted
Stock Awards may not vest any faster than 33-1/3% per year unless the vesting is performance based. In the case of performance vesting, Restricted Stock Awards shall nonetheless be subject to one-year cliff vesting in the event the performance
criteria are satisfied prior to one year from the date of grant.
                         6.4    Termination During Performance Period . If a Participant is
Terminated during a Performance Period for any reason, then such Participant will be entitled to payment (whether in Shares, cash or otherwise) with respect to the Restricted Stock Award only to the extent earned as of the date of Termination in
accordance with the Restricted Stock Purchase Agreement, unless the Committee will determine otherwise.
              7.    
 STOCK BONUSES . 
                         7.1    Awards of
Stock Bonuses . A Stock Bonus is an award of Shares (which may consist of Restricted Stock) for services rendered to the Company or any Parent or Subsidiary of the Company. A Stock Bonus may be in lieu of a reasonable amount of salary or cash
bonus, as determined in the good faith discretion of the Committee, pursuant to an Award Agreement (“  Stock Bonus Agreement  ”) that will be in such form (which need not be the same for each Participant) as the Committee
will from time to time approve, and will comply with and be subject to the terms and conditions of this Plan. also, a Stock Bonus may be awarded upon satisfaction of such performance goals over at least a twelve month period as are set out in
advance in the Participant’s individual Award Agreement (the “ Performance Stock Bonus Agreement ” ) that will be in such form (which need not be the same for each Participant) as the Committee will from time to time
approve, and will comply with and be subject to the terms and conditions of this Plan. Stock Bonuses may vary from Participant to Participant and between groups of Participants, and may be based upon the achievement of the Company, Parent or
Subsidiary and/or individual performance factors or upon such other criteria as the Committee may determine.
                         7.2    Terms of Stock Bonuses . The Committee will determine the number of
Shares to be awarded to the Participant. If the Stock Bonus is being earned upon the satisfaction of performance goals pursuant to a Performance Stock Bonus Agreement, then the Committee will: (a) determine the nature, length and starting date of
any Performance Period for each Stock Bonus; (b) select from among the Performance Factors to be used to measure the performance, if any; and (c) determine the number of Shares that may be awarded to the Participant. Prior to the payment of any
Stock Bonus, the Committee shall determine the extent to which such Stock Bonuses have been earned. Performance Periods may overlap and Participants may participate simultaneously with respect to Stock Bonuses that are subject to different
Performance Periods and different performance goals and other criteria. The number of Shares may be fixed or may vary in accordance with such performance goals and criteria as may be determined by the Committee. The Committee may adjust the
performance goals applicable to the Stock Bonuses to take into account changes in law and accounting or tax rules and to make such adjustments as the Committee deems necessary or appropriate to reflect the impact of extraordinary or unusual items,
events or circumstances to avoid windfalls or hardships.
                         7.3    Form of Payment . The earned portion of a Stock Bonus may be paid
currently or on a deferred basis with such interest or dividend equivalent, if any, as the Committee may determine. Payment may be made in the form of cash or whole Shares or a combination thereof, either in a lump sum payment or in installments,
all as the Committee will determine.
 5

 
              8.      PAYMENT FOR SHARE PURCHASES . 
                         8.1    Payment . Payment for Shares purchased pursuant to this Plan may be
made in cash (by check) or, where expressly approved for the Participant by the Committee and where permitted by law:

	 	(a)	 	by cancellation of indebtedness of the Company to the Participant;
	 	 	 
	 	(b)	 	by surrender of shares that either: (1) have been owned by Participant for more than six (6) months and have been paid for within the meaning of SEC Rule 144 (and, if such shares were purchased from the Company by use of
a promissory note, such note has been fully paid with ( respect to such shares); or (2) were obtained by Participant in the public market;
	 	 	 
	 	(c)	 	by tender of a full recourse promissory note having such terms as may be approved by the Committee and bearing interest at a rate sufficient to avoid imputation of income under Sections 483 and 1274 of the Code; provided,
however, that Participants who are not employees or directors of the Company will not be entitled to purchase Shares with a promissory note unless the note is adequately secured by collateral other than the Shares;
	 	 	 
	 	(d)	 	by waiver of compensation due or accrued to the Participant for services rendered;
	 	 	 
	 	(e)	 	with respect only to purchases upon exercise of an Option, and provided that a public market for the Company’s stock exists:

	 	(1)	 	through a “same day sale” commitment from the Participant and a broker-dealer that is a member of the National Association of Securities Dealers (an   “NASD Dealer”  ) whereby the
Participant irrevocably elects to exercise the Option and to sell a portion of the Shares so purchased to pay for the Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the Exercise Price directly
to the Company; or
	 	 	 
	 	(2)	 	through a “margin” commitment from the Participant and a NASD Dealer whereby the Participant irrevocably elects to exercise the Option and to pledge the Shares so purchased to the NASD Dealer in a margin account
as security for a loan from the NASD Dealer in the amount of the Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the Exercise Price directly to the Company; or

	 	(f)	 	by any combination of the foregoing.

                         8.2    Loan Guarantees . The Committee may help the Participant pay for
Shares purchased under this Plan by authorizing a guarantee by the Company of a third-party loan to the Participant.
              9.
     RESTRICTIONS ON SHARES  . At the discretion of the Committee, the Company may reserve to itself and/or its assignee(s) in the Award Agreement a right to repurchase a portion of or all Unvested Shares held by a
Participant following such Participant’s Termination at any time within ninety (90) days after the later of Participant’s Termination Date and the date Participant purchases Shares under this Plan, for cash and/or cancellation of purchase
money indebtedness, at the Participant’s Exercise Price or Purchase Price, as the case may be.
              10.     
WITHHOLDING TAXES . 
                         10.1    Withholding
Generally . Whenever Shares are to be issued in satisfaction of Awards granted under this Plan, the Company may require the Participant to remit to the Company an amount sufficient to satisfy federal, state and local withholding tax requirements
prior to the delivery of any certificate or certificates for such Shares. Whenever, under this Plan, payments in satisfaction of Awards are to be made in cash, such payment will be net of an amount sufficient to satisfy federal, state, and local
withholding tax requirements.
 6

 
                         10.2    Stock
Withholding . When, under applicable tax laws, a Participant incurs tax liability in connection with the exercise or vesting of any Award that is subject to tax withholding and the Participant is obligated to pay the Company the amount required
to be withheld, the Committee may in its sole discretion allow the Participant to satisfy the minimum withholding tax obligation by electing to have the Company withhold from the Shares to be issued that number of Shares having a Fair Market Value
equal to the minimum amount required to be withheld, determined on the date that the amount of tax to be withheld is to be determined. All elections by a Participant to have Shares withheld for this purpose will be made in accordance with the
requirements established by the Committee and be in writing in a form acceptable to the Committee.
              11.     
TRANSFERABILITY . 
                         11.1   Except as
otherwise provided in this Section 11, Awards granted under this Plan, and any interest therein, will not be transferable or assignable by Participant, and may not be made subject to execution, attachment or similar process, otherwise than by will
or by the laws of descent and distribution or as determined by the Committee and set forth in the Award Agreement with respect to Awards that are not ISOs.
                         11.2    All Awards other than NQSO’s . All Awards other than
NQSO’s shall be exercisable: (i) during the Participant’s lifetime, only by (A) the Participant, or (B) the Participant’s guardian or legal representative; and (ii) after Participant’s death, by the legal representative of the
Participant’s heirs or legatees.
                         11.3   
NQSOs . Unless otherwise restricted by the Committee, an NQSO shall be exercisable: (i) during the Participant’s lifetime only by (A) the Participant, (B) the Participant’s guardian or legal representative, (C) a Family Member of the
Participant who has acquired the NQSO by “permitted transfer;” and (ii) after Participant’s death, by the legal representative of the Participant’s heirs or legatees. “Permitted transfer” means, as authorized by this
Plan and the Committee in an NQSO, any transfer effected by the Participant during the Participant’s lifetime of an interest in such NQSO but only such transfers which are by gift or domestic relations order. A permitted transfer does not
include any transfer for value and neither of the following are transfers for value: (a) a transfer of under a domestic relations order in settlement of marital property rights or (b) a transfer to an entity in which more than fifty percent of the
voting interests are owned by Family Members or the Participant in exchange for an interest in that entity.
              12.
     PRIVILEGES OF STOCK OWNERSHIP . 
                         12.1    Voting and Dividends . No Participant will have any of the rights of
a stockholder with respect to any Shares until the Shares are issued to the Participant. After Shares are issued to the Participant, the Participant will be a stockholder and have all the rights of a stockholder with respect to such Shares,
including the right to vote and receive all dividends or other distributions made or paid with respect to such Shares; provided, that if such Shares are Restricted Stock, then any new, additional or different securities the Participant may become
entitled to receive with respect to such Shares by virtue of a stock dividend, stock split or any other change in the corporate or capital structure of the Company will be subject to the same restrictions as the Restricted Stock; provided, further,
that the Participant will have no right to retain such stock dividends or stock distributions with respect to Shares that are repurchased at the Participant’s Purchase Price or Exercise Price pursuant to Section 12.
                         12.2    Financial Statements . The Company will provide
financial statements to each Participant prior to such Participant’s purchase of Shares under this Plan, and to each Participant annually during the period such Participant has Awards outstanding; provided, however, the Company will not be
required to provide such financial statements to Participants whose services in connection with the Company assure them access to equivalent information.
 7

 
              13.      CERTIFICATES .  All certificates for Shares or other securities
delivered under this Plan will be subject to such stock transfer orders, legends and other restrictions as the Committee may deem necessary or advisable, including restrictions under any applicable federal, state or foreign securities law, or any
rules, regulations and other requirements of the SEC or any stock exchange or automated quotation system upon which the Shares may be listed or quoted.
              14.      ESCROW; PLEDGE OF SHARES .  To enforce any restrictions on a Participant’s Shares, the Committee may require the
Participant to deposit all certificates representing Shares, together with stock powers or other instruments of transfer approved by the Committee, appropriately endorsed in blank, with the Company or an agent designated by the Company to hold in
escrow until such restrictions have lapsed or terminated, and the Committee may cause a legend or legends referencing such restrictions to be placed on the certificates. Any Participant who is permitted to execute a promissory note as partial or
full consideration for the purchase of Shares under this Plan will be required to pledge and deposit with the Company all or part of the Shares so purchased as collateral to secure the payment of Participant’s obligation to the Company under
the promissory note; provided, however, that the Committee may require or accept other or additional forms of collateral to secure the payment of such obligation and, in any event, the Company will have full recourse against the Participant under
the promissory note notwithstanding any pledge of the Participant’s Shares or other collateral. In connection with any pledge of the Shares, Participant will be required to execute and deliver a written pledge agreement in such form as the
Committee will from time to time approve. The Shares purchased with the promissory note may be released from the pledge on a pro rata basis as the promissory note is paid.
              15.      EXCHANGE AND BUYOUT OF AWARDS .  The Committee may, at any time or from time to time, authorize the Company, with the
consent of the respective Participants, to issue new Awards in exchange for the surrender and cancellation of any or all outstanding Awards. The Committee may at any time buy from a Participant an Award previously granted with payment in cash,
Shares (including Restricted Stock) or other consideration, based on such terms and conditions as the Committee and the Participant may agree.
              16.      SECURITIES LAW AND OTHER REGULATORY COMPLIANCE .  An Award will not be effective unless such Award is in compliance with all
applicable federal and state securities laws, rules and regulations of any governmental body, and the requirements of any stock exchange or automated quotation system upon which the Shares may then be listed or quoted, as they are in effect on the
date of grant of the Award and also on the date of exercise or other issuance. Notwithstanding any other provision in this Plan, the Company will have no obligation to issue or deliver certificates for Shares under this Plan prior to: (a) obtaining
any approvals from governmental agencies that the Company determines are necessary or advisable; and/or (b) completion of any registration or other qualification of such Shares under any state or federal law or ruling of any governmental body that
the Company determines to be necessary or advisable. The Company will be under no obligation to register the Shares with the SEC or to effect compliance with the registration, qualification or listing requirements of any state securities laws, stock
exchange or automated quotation system, and the Company will have no liability for any inability or failure to do so.
              17.
     NO OBLIGATION TO EMPLOY .  Nothing in this Plan or any Award granted under this Plan will confer or be deemed to confer on any Participant any right to continue in the employ of, or to continue any other
relationship with, the Company or any Parent or Subsidiary of the Company or limit in any way the right of the Company or any Parent or Subsidiary of the Company to terminate Participant’s employment or other relationship at any time, with or
without cause.
              18.      CORPORATE TRANSACTIONS . 
 8

 
                         18.1    Assumption or
Replacement of Awards by Successor . In the event of (a) a dissolution or liquidation of the Company, (b) a merger or consolidation in which the Company is not the surviving corporation (other than a merger or consolidation with a wholly-owned
subsidiary, a reincorporation of the Company in a different jurisdiction, or other transaction in which there is no substantial change in the stockholders of the Company or their relative stock holdings and the Awards granted under this Plan are
assumed, converted or replaced by the successor corporation, which assumption will be binding on all Participants), (c) a merger in which the Company is the surviving corporation but after which the stockholders of the Company (other than any
stockholder which merges (or which owns or controls another corporation which merges) with the Company in such merger) cease to own their shares or other equity interests in the Company, (d) the sale of substantially all of the assets of the
Company, or (e) any other transaction which qualifies as a “corporate transaction” under Section 424(a) of the Code wherein the stockholders of the Company give up all of their equity interest in the Company (except for the acquisition,
sale or transfer of all or substantially all of the outstanding shares of the Company from or by the stockholders of the Company), any or all outstanding Awards may be assumed, converted or replaced by the successor corporation (if any), which
assumption, conversion or replacement will be binding on all Participants. In the alternative, the successor corporation may substitute equivalent Awards or provide substantially similar consideration to Participants as was provided to stockholders
(after taking into account the existing provisions of the Awards). The successor corporation may also issue, in place of outstanding Shares of the Company held by the Participant, substantially similar shares or other property subject to repurchase
restrictions no less favorable to the Participant. In the event such successor corporation (if any) refuses to assume or substitute Options, as provided above, pursuant to a transaction described in this Subsection 18.1, such Options will expire on
such transaction at such time and on such conditions as the Board will determine.
                         18.2    Other Treatment of Awards . Subject to any greater rights granted to
Participants under the foregoing provisions of this Section 18, in the event of the occurrence of any transaction described in Section 18.1, any outstanding Awards will be treated as provided in the applicable agreement or plan of merger,
consolidation, dissolution, liquidation, sale of assets or other “corporate transaction.”
                         18.3    Assumption of Awards by the Company . The Company, from time to
time, also may substitute or assume outstanding awards granted by another company, whether in connection with an acquisition of such other company or otherwise, by either: (a) granting an Award under this Plan in substitution of such other
company’s award; or (b) assuming such award as if it had been granted under this Plan if the terms of such assumed award could be applied to an Award granted under this Plan. Such substitution or assumption will be permissible if the holder of
the substituted or assumed award would have been eligible to be granted an Award under this Plan if the other company had applied the rules of this Plan to such grant. In the event the Company assumes an award granted by another company, the terms
and conditions of such award will remain unchanged (except that the exercise price and the number and nature of Shares issuable upon exercise of any such option will be adjusted appropriately pursuant to Section 424(a) of the Code). In the event the
Company elects to grant a new Option rather than assuming an existing option, such new Option may be granted with a similarly adjusted Exercise Price.
              19.      ADOPTION AND STOCKHOLDER APPROVAL .  This Plan will become effective on the date this Plan is adopted by the Board (the 
 “Effective Date”  ). This Plan shall be approved by the stockholders of the Company (excluding Shares issued pursuant to this Plan), consistent with applicable laws, within twelve (12) months before or after the date this Plan
is adopted by the Board. Upon the Effective Date, the Committee may grant Awards pursuant to this Plan;  provided ,  however , that: (a) no Option may be exercised prior to initial stockholder approval of this Plan; (b) no Option
granted pursuant to an increase in the number of Shares subject to this Plan approved by the Board will be exercised prior to the time such increase has been approved by the stockholders of the Company; (c) in the event that initial stockholder
approval is not obtained within the time period provided herein, all Awards granted hereunder shall be cancelled, any Shares issued pursuant to any Awards shall be cancelled and any purchase of Shares issued hereunder shall be rescinded; and (d) in
the event that stockholder approval of such increase is not obtained within the time period provided herein, all Awards granted pursuant to such increase will be cancelled, any Shares issued pursuant to any Award granted pursuant to such increase
will be cancelled, and any purchase of Shares pursuant to such increase will be rescinded.
              20.      TERM OF
PLAN/GOVERNING LAW .  Unless earlier terminated as provided herein, this Plan will terminate ten (10) years from the date this Plan is adopted by the Board or, if earlier, the date of stockholder approval. This Plan and all agreements
thereunder shall be governed by and construed in accordance with the laws of the State of California.
 9

 
              21.      AMENDMENT OR TERMINATION OF PLAN .  The Board may at any time
terminate or amend this Plan in any respect, including without limitation amendment of any form of Award Agreement or instrument to be executed pursuant to this Plan; provided, however, that the Board will not, without the approval of the
stockholders of the Company, amend this Plan in any manner that requires such stockholder approval. . Notwithstanding the foregoing, the Board may grant waivers of Plan or Award provisions only under extraordinary conditions, such as, death,
disability, change of corporate control, as determined in the good faith discretion of the Committee.
              22.     
NONEXCLUSIVITY OF THE PLAN .  Neither the adoption of this Plan by the Board, the submission of this Plan to the stockholders of the Company for approval, nor any provision of this Plan will be construed as creating any limitations on the
power of the Board to adopt such additional compensation arrangements as it may deem desirable, including, without limitation, the granting of stock options and bonuses otherwise than under this Plan, and such arrangements may be either generally
applicable or applicable only in specific cases.
              23.      DEFINITIONS .  As used in this Plan, the
following terms will have the following meanings:
                          
“Award”   means any award under this Plan, including any Option, Restricted Stock or Stock Bonus.
                           “Award Agreement”   means, with respect to each Award, the signed
written agreement between the Company and the Participant setting forth the terms and conditions of the Award.
                           “Board”   means the Board of Directors of the Company.
                           “Cause”   means (i) the commission of an act of theft,
embezzlement, fraud, dishonesty, (b) a breach of fiduciary duty to the Company or a Parent or Subsidiary of the Company or (c) a failure to materially perform the customary duties of employee’s employment.
                           “Code”   means the Internal Revenue Code of 1986, as amended.

                          “Committee”   means the Compensation Committee of
the Board.
                           “Company”   means Elantec
Semiconductor, Inc. or any successor corporation.
                          
“Disability”   means a disability, whether temporary or permanent, partial or total, as determined by the Committee.
                           “Exchange Act”   means the Securities Exchange Act of 1934, as
amended.
                           “Exercise Price”   means the
price at which a holder of an Option may purchase the Shares issuable upon exercise of the Option.
                           “Fair Market Value”   means, as of any date, the value of a share of the
Company’s Common Stock determined as follows:

	 	(a)	 	if such Common Stock is then quoted on the Nasdaq National Market, its closing price on the Nasdaq National Market on the date of determination as reported in  The Wall Street Journal ;
	 	 	 
	 	(b)	 	if such Common Stock is publicly traded and is then listed on a national securities exchange, its closing price on the date of determination on the principal national securities exchange on (which the Common Stock is
listed or admitted to trading as reported in  The Wall Street Journal ;

 10

	 	(c)	 	if such Common Stock is publicly traded but is not quoted on the Nasdaq National Market nor listed or admitted to trading on a national securities exchange, the average of the closing bid and asked prices on the date of
determination as reported in  The Wall Street Journal ;

	 	(d)	 	in the case of an Award made on the Effective Date, the price per share at which shares of the Company’s Common Stock are initially offered for sale to the public by the Company’s underwriters in the initial
public offering of the Company’s Common Stock pursuant to a registration statement filed with the SEC under the Securities Act; or
	 	 	 
	 	(e)	 	if none of the foregoing is applicable, by the Committee in good faith.

             “  Family
Member  ” includes any of the following:

	 	(a)	 	child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law of the Participant,
including any such person with such relationship to the Participant by adoption;
	 	 	 
	 	(b)	 	any person (other than a tenant or employee) sharing the Participant’s household;
	 	 	 
	 	(c)	 	a trust in which the persons in (a) and (b) have more than fifty percent of the beneficial interest;
	 	 	 
	 	(d)	 	a foundation in which the persons in (a) and (b) or the Participant control the management of assets; or
	 	 	 
	 	(e)	 	any other entity in which the persons in (a) and (b) or the Participant own more than fifty percent of the voting interest.

             “  Insider  ” means an officer or director of the Company or any other person whose transactions in the Company’s Common Stock are subject to
Section 16 of the Exchange Act.
             “  Option  ” means an award of an option to purchase Shares pursuant to Section
5.
             “  Parent  ” means any corporation (other than the Company) in an unbroken chain of corporations ending with the
Company if each of such corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.
             “  Participant  ” means a person who receives an Award under this Plan.
             “  Performance Factors  ” means the factors selected by the Committee from among the following measures to determine whether the performance goals
established by the Committee and applicable to Awards have been satisfied:

	 	(a)	 	Net revenue and/or net revenue growth;
	 	 	 
	 	(b)	 	Earnings before income taxes and amortization and/or earnings before income taxes and amortization growth;
	 	 	 
	 	(c)	 	Operating income and/or operating income growth;
	 	 	 
	 	(d)	 	Net income and/or net income growth;

 11

	 	(e)	 	Earnings per share and/or earnings per share growth;

	 	(f)	 	Total stockholder return and/or total stockholder return growth;
	 	 	 
	 	(g)	 	Return on equity;
	 	 	 
	 	(h)	 	Operating cash flow return on income;
	 	 	 
	 	(i)	 	Adjusted operating cash flow return on income;
	 	 	 
	 	(j)	 	Economic value added; and
	 	 	 
	 	(k)	 	Individual confidential business objectives.

             “  Performance Period  ”
means the period of service determined by the Committee, not to exceed five years, during which years of service or performance is to be measured for Restricted Stock Awards or Stock Bonuses.
             “  Plan  ” means this Elantec Semiconductor, Inc. 2001 Equity Incentive Plan, as amended from time to time.
             “  Restricted Stock Award  ” means an award of Shares pursuant to Section 6.
             “  SEC  ” means the Securities and Exchange Commission.
             “  Securities Act  ” means the Securities Act of 1933, as amended.
             “  Shares  ” means shares of the Company’s Common Stock reserved for issuance under this Plan, as adjusted pursuant to Sections 2 and 18, and
any successor security.
             “  Stock Bonus  ” means an award of Shares, or cash in lieu of Shares, pursuant to Section
7.
             “  Subsidiary  ” means any corporation (other than the Company) in an unbroken chain of corporations beginning
with the Company if each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such
chain.
             “  Termination  ” or “  Terminated  ” means, for purposes of this Plan with respect
to a Participant, that the Participant has for any reason ceased to provide services as an employee, officer, director, consultant, independent contractor, or advisor to the Company or a Parent or Subsidiary of the Company. An employee will not be
deemed to have ceased to provide services in the case of (i) sick leave, (ii) military leave, or (iii) any other leave of absence approved by the Committee, provided, that such leave is for a period of not more than 90 days, unless reemployment upon
the expiration of such leave is guaranteed by contract or statute or unless provided otherwise pursuant to formal policy adopted from time to time by the Company and issued and promulgated to employees in writing. In the case of any employee on an
approved leave of absence, the Committee may make such provisions respecting suspension of vesting of the Award while on leave from the employ of the Company or a Subsidiary as it may deem appropriate, except that in no event may an Option be
exercised after the expiration of the term set forth in the Option agreement. The Committee will have sole discretion to determine whether a Participant has ceased to provide services and the effective date on which the Participant ceased to provide
services (the “  Termination Date  ”).
             “  Unvested Shares  ” means “Unvested
Shares”as defined in the Award Agreement.
             “  Vested Shares  ” means “Vested Shares”as defined in the
Award Agreement.
 12

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