Document:

EX-10.1

 Exhibit 10.1 

EXECUTION VERSION 
 THIRD
AMENDMENT 
 TO 

AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT 

This THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT (this “Amendment”), dated as of August 1,
2014, is entered into by and among the following parties: 
  

	 	(i)	the Borrowers identified on the signature pages hereto; 

  

	 	(ii)	UHS Receivables Corp., as Collection Agent; 

  

	 	(iii)	UHS of Delaware, Inc., as Servicer; 

  

	 	(iv)	Universal Health Services, Inc., as Performance Guarantor; 

  

	 	(v)	Victory Receivables Corporation, as a Conduit; 

  

	 	(vi)	The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch, as Liquidity Bank, LC Participant and Co-Agent for Victory’s Lender Group; 

 

	 	(vii)	SunTrust Bank (“SunTrust”), as Liquidity Bank, LC Participant and Co-Agent for SunTrust’s Lender Group; 

 

	 	(viii)	Atlantic Asset Securitization LLC (“Atlantic”), joining as a Conduit; 

  

	 	(ix)	Credit Agricole Corporate and Investment Bank (“CACIB”), joining as Liquidity Bank, LC Participant and Co-Agent for Atlantic’s Lender Group; and 

 

	 	(x)	PNC Bank, National Association (“PNC”), as Liquidity Bank, LC Participant for PNC’s Lender Group, Co-Agent for PNC’s Lender Group, LC Bank, and
Administrative Agent. 

 Capitalized terms used but not otherwise defined herein have the respective meanings set forth in the
Credit and Security Agreement defined below. 
 BACKGROUND 

1. The parties hereto (other than Atlantic and CACIB) have entered into that certain Amended and Restated Credit and Security Agreement, dated
as of October 27, 2010 (as amended, supplemented and otherwise modified from time to time, the “Credit and Security Agreement”). 

2. In connection with the transactions contemplated by the Credit and Security Agreement, the parties hereto (other than Atlantic, CACIB and
the Performance Guarantor) have entered into that certain Fee Letter, dated as of October 25, 2013 (as amended, supplemented and otherwise modified from time to time, the “Existing Fee Letter”). 

 3. Atlantic and CACIB desire to become parties to the Credit and Security Agreement and the
Existing Fee Letter on the terms set forth herein. 
 4. The parties hereto desire to amend the Credit and Security Agreement as set forth
herein. 
 NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties
hereto agree as follows: 
 SECTION 1. Joinder of Atlantic and CACIB; Rebalancing. 

(a) Joinder. Effective as of the date hereof, (i) Atlantic hereby becomes a party to the Credit and Security
Agreement and the Existing Fee Letter as a Conduit thereunder with all the rights, interests, duties and obligations of a Conduit set forth therein, (ii) CACIB hereby becomes a party to the Credit and Security Agreement and the Existing Fee
Letter as a Liquidity Bank and an LC Participant thereunder with all the rights, interests, duties and obligations of a Liquidity Bank and an LC Participant set forth therein, (iii) Atlantic and CACIB shall constitute the members of a single
new Lender Group, (iv) each of Atlantic and CACIB hereby appoints CACIB as its Co-Agent and (v) CACIB hereby becomes a party to the Credit and Security Agreement and the Existing Fee Letter as the Co-Agent for Atlantic’s Lender Group
thereunder with all the rights, interests, duties and obligations of a Co-Agent set forth therein. In its capacity as a Committed Purchaser, CACIB’s Commitment shall be the applicable amount set forth on Schedule A attached hereto. For
the avoidance of doubt, no Amendment Fee (as defined in the Existing Fee Letter) shall be payable to CACIB or Atlantic pursuant to the Existing Fee Letter. 

(b) Rebalancing; Initial Loan by Atlantic or CACIB. On the date hereof, the Borrowers will request an Advance and repay
a portion of the principal of the Lenders’ outstanding Loans in the amounts for each Lender specified in Schedule B attached hereto; provided that all accrued and unpaid CP Costs, Interest and fees with respect to the principal of
such Loans so repaid shall be payable by the Borrowers to the applicable Lenders on the next occurring Settlement Date. The Borrowers hereby request that Atlantic or CACIB fund a Loan on the date hereof in the initial principal amount of
$83,819,444.44. Such Loan shall be funded by Atlantic or CACIB on the date hereof in accordance with the terms of the Credit and Security Agreement and upon satisfaction of all conditions precedent thereto specified in the Credit and Security
Agreement. For administrative convenience, the Borrowers hereby instruct Atlantic and CACIB to fund the foregoing Loan by paying the proceeds thereof directly to the other Lenders and the Borrowers in the amounts set forth in Schedule B
attached hereto, in each case, to be applied as (x) the Advance and (y) the foregoing repayment of such Lenders’ Loans on the Borrowers’ behalf. Upon receipt by such other Lenders of the proceeds of such Loan from Atlantic or
CACIB as applicable, (i) the Borrowers shall be deemed to have received such proceeds for all purposes and (ii) such other Lenders’ shall be deemed to have received such repayment. 

  
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 (c) Consents. The parties hereto hereby consent to the joinder of Atlantic
and CACIB as parties to the Credit and Security Agreement on the terms set forth in clause (a) above, to the non-ratable repayment of the Lenders’ Loans on the terms set forth in clause (b) above and the foregoing
non-ratable initial Loan to be funded by Atlantic or CACIB on the terms set forth in clause (b) above, in each case, as set forth above on a one-time basis. 

(d) Credit Decision. Each of CACIB and Atlantic (i) confirms to the Administrative Agent, the Co-Agents and the
Lenders, that it has received a copy of the Credit and Security Agreement, the other Transaction Documents, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this
Amendment and (ii) agrees that it will, independently and without reliance upon the Administrative Agent, the Co-Agents, the Lenders and their respective Affiliates, based on such documents and information as CACIB or Atlantic (as the case may
be) shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit and Security Agreement and any other Transaction Document. None of the Administrative Agent, the Co-Agents and the
Lenders makes or has made any representation or warranty or assumes or has assumed any responsibility with respect to (x) any statements, warranties or representations made in or in connection with the Credit and Security Agreement, any other
Transaction Document or any other instrument or document furnished pursuant thereto or the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Credit and Security Agreement, the Receivables, the Collateral any
other Transaction Document or any other instrument or document furnished pursuant thereto or (y) the financial condition of any of the Borrowers, the Collection Agent, the Servicer, the Performance Guarantor or the Originators or the
performance or observance by any of them any of their respective obligations under the Credit and Security Agreement, any other Transaction Document, or any instrument or document furnished pursuant thereto. 

(e) Notices. Atlantic’s and CACIB’s addresses for communications and notices under the Credit and Security
Agreement and the other Transaction Documents are set forth below: 
  

			
	Credit Agricole Corporate and Investment Bank
	1301 Avenue of the Americas
	New York, NY 10019
	Attention:	  	Tina Kourmpetis / Deric Bradford
	Telephone:	  	212-261-7814 / 212-261-3470
	Facsimile:	  	917-849-5584
	Email:	  	conduit.funding@ca-cib.com / conduitsec@ca-cib.com

 SECTION 2. Amendments to the Credit and Security Agreement. The Credit and Security Agreement is hereby
amended as of the date hereof as follows: 
 (a) Section 1.5 of the Credit and Security Agreement is amended by
inserting the phrase “without reduction for offset or counterclaim” immediately after the phrase “with the terms hereof” where it appears in the first sentence thereof. 

  
 3 

 (b) Section 13.1 of the Credit and Security Agreement is hereby
amended by adding the following new sentence at the end thereof: 
 Without limiting the right of any Originator to terminate
its participation in the facility evidenced by any Receivables Sale Agreement, except as otherwise permitted under this Agreement, the Administrative Agent shall not release in writing any material portion of the Collateral from the security
interest of the Administrative Agent hereunder without the consent of all Co-Agents. 
 (c) The following defined terms are
added to Exhibit I to the Credit and Security Agreement in appropriate alphabetical order: 

“Atlantic” means Atlantic Asset Securitization LLC, a Delaware limited liability company. 

“CACIB” means Credit Agricole Corporate and Investment Bank. 

(d) The Definition of “Aggregate Commitment” set forth in Exhibit I to the Credit and Security
Agreement is replaced in its entirety with the following: 
 “Aggregate Commitment” means, on any
date of determination, the aggregate amount of the Lender Group Commitments of all Lender Groups (excluding the Lender Group Commitment of any Defaulting Lender’s Lender Group). As of the date hereof, the Aggregate Commitment is $360,000,000.

 (e) The definition of “Co-Agent Account” set forth in Exhibit I to the Credit and Security
Agreement is replaced in its entirety with the following: 
  

	 	(i)	for PNC’s Lender Group: 

 PNC Bank, National Association 

ABA No: 043 000 096 
 AC No:
130760016803 
 Reference: UHS Receivables Corp. 

Account Name: Commercial Loan Department 
  

	 	(ii)	for Victory’s Lender Group: 

 The Bank of Tokyo-Mitsubishi UFJ, Ltd. 

ABA No: 026-009-632 
 AC No:
310-051-428 
 Acct. Name: VRC 

Reference: UHS 

  
 4 

	 	(iii)	for SunTrust’s Lender Group: 

 SunTrust Bank 

Atlanta, Georgia 
 ABA No.
061000104 
 AC No: 1000022220783 

Credit: Agency Services Operating Account 

Reference: UHS Receivables 

Attention: Doug Weltz 
  

	 	(iv)	for Atlantic’s Lender Group: 

 Credit Agricole Corporate and Investment Bank 

ABA No: 026008073 
 Account
Name: Atlantic Asset Securitization LLC 
 Account No: 01-25680-0001-00-001 

Attn: Cesar Santana / Samuel Klein 

Ref: UHS 

(f) The definition of “Conduit” set forth in Exhibit I to the Credit and Security Agreement is
replaced in its entirety with the following: 
 “Conduit” means each commercial paper conduit that is
a party to this Agreement, as a lender, or that becomes a party to this Agreement, as a lender pursuant to an Assignment Agreement or otherwise. As of August 1, 2014, the Conduits are Atlantic and Victory. 

(g) Schedule A to the Credit and Security Agreement is replaced in its entirety with Schedule A attached hereto.

 SECTION 3. Representations and Warranties. Each Borrower, the Collection Agent, the Servicer and the Performance Guarantor hereby
represents and warrants to the Lenders, the Co-Agents, the Administrative Agent and the Assignee as follows: 
 (a)
Representations and Warranties. The representations and warranties made by such Person in the Transaction Documents are true and correct as of the date hereof and after giving effect to this Amendment (unless stated to relate solely to an
earlier date, in which case such representations or warranties were true and correct as of such earlier date). 
 (b)
Enforceability. The execution and delivery by such Person of this Amendment, and the performance of each of its obligations under this Amendment and the other Transaction Documents to which such Person is a party, as amended hereby, are
within each of its organizational powers and have been duly authorized by all necessary organizational action on its part. This Amendment and the other Transaction Documents to which such Person is a party, as amended hereby, are such Person’s
valid and legally binding obligations, enforceable in accordance with its terms. 
 (c) No Amortization Event. After
giving effect to this Amendment and the transactions contemplated hereby, no Amortization Event or Unmatured Amortization Event has occurred and is continuing. 

  
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 SECTION 4. Effectiveness. This Amendment shall become effective on the date hereof (the
“Effective Date”) upon receipt by the Administrative Agent of the following: 
 (a) counterparts to this
Amendment executed by each of the parties hereto; and 
 (b) reliance letters addressed to CACIB and Atlantic making them
addressees of, with the right to rely on, the various opinions of counsel to UHS and its Affiliates previously delivered to the Lenders in connection with the Transaction Documents (other than the reliance letter of Buchanan Ingersoll &
Rooney PC, which shall be delivered by the Borrowers no later than thirty days after the date hereof). 
 SECTION 5. CHOICE OF LAW;
CONSENT TO JURISDICTION. 
 (a) THIS AMENDMENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF NEW YORK, WITHOUT REGARD TO ANY PRINCIPLES OF CONFLICTS OF LAWS THEREOF. 
 (b) EACH PARTY TO THIS AMENDMENT HEREBY
IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR NEW YORK STATE COURT SITTING IN THE BOROUGH OF MANHATTAN, NEW YORK, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AMENDMENT OR ANY DOCUMENT
EXECUTED BY SUCH PERSON PURSUANT TO THIS AMENDMENT, AND EACH SUCH PARTY HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW
OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT THE RIGHT OF ANY AGENT OR ANY LENDER TO BRING PROCEEDINGS AGAINST ANY LOAN PARTY
IN THE COURTS OF ANY OTHER JURISDICTION. ANY JUDICIAL PROCEEDING BY ANY LOAN PARTY AGAINST THE AGENT OR ANY LENDER OR ANY AFFILIATE OF THE AGENT OR ANY LENDER INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR
CONNECTED WITH THIS AMENDMENT OR ANY DOCUMENT EXECUTED BY SUCH LOAN PARTY PURSUANT TO THIS AMENDMENT SHALL BE BROUGHT ONLY IN A COURT IN THE BOROUGH OF MANHATTAN, NEW YORK. 

SECTION 6. Effect of Amendment. All provisions of the Credit and Security Agreement, as expressly amended and modified by this
Amendment, shall remain in full force and effect. After this Amendment becomes effective, all references in the Credit and Security Agreement (or in any other Transaction Document) to “this Agreement”, “hereof”,
“herein” or words of similar effect referring to the Credit and Security Agreement shall be deemed to be references to the Credit and Security Agreement as amended by this Amendment. This Amendment shall not be deemed, either expressly or
impliedly, to waive, amend or supplement any provision of the Credit and Security Agreement other than as set forth herein. 

  
 6 

 SECTION 7. Counterparts. This Amendment may be executed in any number of counterparts and
by different parties on separate counterparts, each counterpart shall be deemed to be an original, and all such counterparts shall together constitute but one and the same agreement. Delivery of an executed counterpart of a signature page to this
Amendment by facsimile or other electronic means shall be effective as delivery of a manually executed counterpart of this Amendment. 

SECTION 8. Transaction Document. This Amendment shall constitute a Transaction Document for all purposes. 

SECTION 9. Section Headings. The various headings of this Amendment are included for convenience only and shall not affect the meaning
or interpretation of this Amendment, the Credit and Security Agreement or any provision hereof or thereof. 
 SECTION 10. Further
Assurances. Each of the Borrowers, the Collection Agent, the Servicer and the Performance Guarantor hereby agrees to do all such things and execute all such documents and instruments, at the Borrowers’ sole expense, as the Assignee may
reasonably consider necessary or desirable to give full effect to the transactions set forth in Section 1 of this Amendment. 

SECTION 11. Severability. If any one or more of the agreements, provisions or terms of this Amendment shall for any reason whatsoever
be held invalid or unenforceable, then such agreements, provisions or terms shall be deemed severable from the remaining agreements, provisions and terms of this Amendment and shall in no way affect the validity or enforceability of the provisions
of this Amendment or the Credit and Security Agreement. 
 SECTION 12. Ratification. After giving effect to this Amendment and each
of the other agreements, documents and instruments contemplated in connection herewith, the Performance Undertaking, along with each of the provisions thereof, remains in full force and effect and is hereby ratified and reaffirmed by the Performance
Guarantor and each of the other parties hereto. 
 [Signature pages follow.] 

  
 7 

 IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first written above.

 AIKEN REGIONAL RECEIVABLES, L.L.C., 
 DISTRICT
HOSPITAL PARTNERS RECEIVABLES, L.L.C., 
 FORT DUNCAN MEDICAL RECEIVABLES, L.L.C., 

LANCASTER HOSPITAL RECEIVABLES, L.L.C., 
 LAREDO
REGIONAL RECEIVABLES, L.L.C., 
 MANATEE MEMORIAL RECEIVABLES, L.L.C., 

MCALLEN HOSPITALS RECEIVABLES, L.L.C., 
 NORTHWEST TEXAS
HEALTHCARE RECEIVABLES, L.L.C., 
 SPARKS FAMILY HOSPITAL RECEIVABLES, L.L.C., 

SUMMERLIN HOSPITAL RECEIVABLES, L.L.C., 
 TEMECULA
VALLEY HOSPITAL RECEIVABLES, L.L.C., 
 TEXOMA HEALTHCARE SYSTEM RECEIVABLES, L.L.C., 

UHS OF OKLAHOMA RECEIVABLES, L.L.C., 
 UHS-CORONA
RECEIVABLES, L.L.C., 
 RANCHO SPRINGS RECEIVABLES, L.L.C., 

VALLEY HEALTH SYSTEM RECEIVABLES, L.L.C. AND 

WELLINGTON REGIONAL RECEIVABLES, L.L.C., 

AS BORROWERS 
  

			
	By:	 	 /s/ Cheryl K. Ramagano

	Name:	 	Cheryl K. Ramagano
	Title:	 	Treasurer

  

					
		 	S-1	  	 Third Amendment to A&R

Credit and Security Agreement

(UHS Receivables Corp.)

			
	UHS RECEIVABLES CORP.,
	AS COLLECTION AGENT
		
	By:	 	 /s/ Cheryl K. Ramagano

	Name:	 	Cheryl K. Ramagano
	Title:	 	VP & Treasurer
	
	UHS OF DELAWARE, INC.,
	AS SERVICER
		
	By:	 	 /s/ Cheryl K. Ramagano

	Name:	 	Cheryl K. Ramagano
	Title:	 	VP & Treasurer
	
	UNIVERSAL HEALTH SERVICES, INC.,
	AS PERFORMANCE GUARANTOR
		
	By:	 	 /s/ Cheryl K. Ramagano

	Name:	 	Cheryl K. Ramagano
	Title:	 	VP & Treasurer

  

					
		 	S-2	  	 Third Amendment to A&R

Credit and Security Agreement

(UHS Receivables Corp.)

			
	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH, AS LIQUIDITY BANK AND LC PARTICIPANT FOR
VICTORY’S LENDER GROUP
		
	By:	 	 /s/ B. McNany

	Name:	 	B. McNany
	Title:	 	Vice President
	
	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH,
	AS CO-AGENT FOR VICTORY’S LENDER GROUP
		
	By:	 	 /s/ Christopher Pohl

	Name:	 	Christopher Pohl
	Title:	 	Managing Director
	
	VICTORY RECEIVABLES CORPORATION,
	AS A CONDUIT
		
	By:	 	 /s/ David V. DeAngelis

	Name:	 	David V. DeAngelis
	Title:	 	Vice President

  

					
		 	S-3	  	 Third Amendment to A&R

Credit and Security Agreement

(UHS Receivables Corp.)

			
	SUNTRUST BANK,
	AS LIQUIDITY BANK, LC PARTICIPANT FOR
	SUNTRUST’S LENDER GROUP AND CO-AGENT FOR
	SUNTRUST’S LENDER GROUP
		
	By:	 	 /s/ Pawan Churiwal

	Name:	 	Pawan Churiwal
	Title:	 	Vice President

  

					
		 	S-4	  	 Third Amendment to A&R

Credit and Security Agreement

(UHS Receivables Corp.)

			
	PNC BANK, NATIONAL ASSOCIATION,
	AS LC PARTICIPANT, LIQUIDITY BANK
	AND AS LC BANK
		
	By:	 	 /s/ Mark Falcione

	Name:	 	Mark Falcione
	Title:	 	Executive Vice President
	
	PNC BANK, NATIONAL ASSOCIATION,
	AS CO-AGENT AND ADMINISTRATIVE AGENT
		
	By:	 	 /s/ Mark Falcione

	Name:	 	Mark Falcione
	Title:	 	Executive Vice President

  

					
		 	S-5	  	 Third Amendment to A&R

Credit and Security Agreement

(UHS Receivables Corp.)

			
	CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK, AS LIQUIDITY BANK, LC PARTICIPANT FOR ATLANTIC’S
LENDER GROUP AND CO-AGENT FOR ATLANTIC’S LENDER GROUP
		
	By:	 	 /s/ Sam Pilcer

	Name:	 	Sam Pilcer
	Title:	 	Managing Director
		
	By:	 	 /s/ Kostantina Kourmpetis

	Name:	 	Kostantina Kourmpetis
	Title:	 	Managing Director
	
	ATLANTIC ASSET SECURITIZATION LLC,
	AS A CONDUIT
		
	By:	 	 /s/ Sam Pilcer

	Name:	 	Sam Pilcer
	Title:	 	Managing Director
		
	By:	 	 /s/ Kostantina Kourmpetis

	Name:	 	Kostantina Kourmpetis
	Title:	 	Managing Director

  

					
		 	S-6	  	 Third Amendment to A&R

Credit and Security Agreement

(UHS Receivables Corp.)

 SCHEDULE A 

COMMITMENTS 
  

					
	 VICTORY’S LENDER GROUP
	  	COMMITMENT	 
	 Lender Group Commitment
	  	$	90,000,000	  
	 BTMU’s Commitment as a Liquidity Bank
	  	$	90,000,000	  
	 BTMU’s Commitment as an LC Participant
	  	$	90,000,000	  

  

					
	 SUNTRUST’S LENDER
GROUP
	  	COMMITMENT	 
	 Lender Group Commitment
	  	$	90,000,000	  
	 SunTrust’s Commitment as a Liquidity Bank
	  	$	90,000,000	  
	 SunTrust’s Commitment as an LC Participant
	  	$	90,000,000	  

  

					
	 PNC’S LENDER GROUP
	  	COMMITMENT	 
	 Lender Group Commitment
	  	$	95,000,000	  
	 PNC’s Commitment as a Liquidity Bank
	  	$	95,000,000	  
	 PNC’s Commitment as an LC Participant
	  	$	95,000,000	  

  

					
	 ATLANTIC’S LENDER GROUP
	  	COMMITMENT	 
	 Lender Group Commitment
	  	$	85,000,000	  
	 CACIB’s Commitment as a Liquidity Bank
	  	$	85,000,000	  
	 CACIB’s Commitment as an LC Participant
	  	$	85,000,000	  

  
 Schedule A 

 SCHEDULE B 

REPAYMENT AMOUNTS 
 Atlantic’s Lender
Group shall wire the amounts specified below to the Persons specified below: 
  

					
	 PERSON:
	  	AMOUNT:	 
	 VICTORY’S LENDER GROUP
	  	$	1,250,000.00	  
	 SUNTRUST’S LENDER GROUP
	  	$	1,250,000.00	  
	 PNC’S LENDER GROUP
	  	$	1,319,444.44	  
	 BORROWERS
	  	$	80,000,000.00	  

  
 Schedule B2002 ESPP

PLANTRONICS, INC.
2002 EMPLOYEE STOCK PURCHASE PLAN

Amended and Restated Effective as of May 27, 2014

		
	1.
	Purpose.  The purpose of the Plan is to provide employees of the Company and its Designated Subsidiaries with an opportunity to purchase Common Stock of the Company through accumulated payroll deductions or a cash contribution, if applicable.  This Plan includes two components: a Code Section 423 Plan Component and a Non-423 Plan Component. It is the intention of the Company to have the Code Section 423 Plan Component qualify as an “Employee Stock Purchase Plan” under Section 423 of the Code and the provisions of the Plan with respect to the Code Section 423 Component, accordingly, shall be construed so as to extend and limit participation in a manner consistent with the requirements of that section of the Code.  In addition, this Plan authorizes the grant of options under the Non-423 Plan Component that do not qualify under Section 423 of the Code, pursuant to the rules, procedures or sub-plans adopted by the Administrator that are designed to achieve tax, securities laws or other objectives for Employees and/or the Company.  Except as otherwise indicated, the Non-423 Plan Component will operate and be administered in the same manner as the Code Section 423 Plan Component.

		
	2.
	Definitions.

		
	(a)
	“Administrator” shall mean the Board of Directors of the Company or any committee of members of the Board of Directors authorized to administer the Plan.

		
	(b)
	“Applicable Laws” shall mean the requirements relating to the administration of equity-based awards under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any foreign country or jurisdiction where the Plan is, or will be, offered.

		
	(c)
	“Code” shall mean the Internal Revenue Code of 1986, as amended. Reference to a specific section of the Code or U.S. Treasury Regulation thereunder will include such section or regulation, any valid regulation or other official applicable guidance promulgated under such section, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation.

		
	(d)
	“Code Section 423 Plan Component” shall mean the component of this Plan that is intended to meet the requirements set forth in Section 423(b) of the Code.  The Code Section 423 Plan Component shall be construed, administered and enforced in accordance with Section 423(b) of the Code.

		
	(e)
	“Common Stock” shall mean the common stock of the Company.

		
	(f)
	“Company” shall mean Plantronics, Inc., a Delaware corporation.

		
	(g)
	“Compensation” shall mean a Participant’s base straight time gross earnings rate, exclusive of any payments for overtime, shift premium, incentive compensation, incentive payments, bonuses, commissions, car allowances, profit-sharing and other compensation.  The Administrator shall have the discretion to determine what constitutes Compensation for Participants under the Plan, but for purposes of Participants participating in the Code Section 423 Plan Component, it will be applied on a uniform, non-discriminatory basis.

		
	(h)
	“Designated Subsidiary” shall mean any Subsidiary that has been designated by the Administrator from time to time in its sole discretion as eligible to participate in the Plan.  The Administrator may provide that any Designated Subsidiary shall only be eligible to participate in the Non-423 Plan Component and at any given time, a Subsidiary that is a Designated Subsidiary under the Code Section 423 Plan Component shall not be a Designated Subsidiary under the Non-423 Plan Component.

		
	(i)
	“Employee” shall mean any individual who is an employee of the Company or a Designated Subsidiary for tax purposes.  For purposes of the Plan, the employment relationship shall be treated as continuing intact while the individual is on sick leave or other leave of absence approved by the Company or Designated Subsidiary, as applicable, or is legally protected under Applicable Laws.  Where the period of leave exceeds three (3) months and the individual’s right to reemployment is not guaranteed either by statute or by contract, the employment relationship shall be deemed to automatically terminate on the date three (3) months and one day following the commencement of such leave.  The Administrator, in its discretion, from time to time may, prior to an Enrollment Date for all options to be granted on the first day of the Offering Period to which the Enrollment Date relates, determine (and for purposes of the Code Section 423 Plan Component, on a uniform and nondiscriminatory basis or as otherwise permitted by Treasury Regulation Section 1.423‐2) that the definition of Employee will or will not include an individual if he or she: (i) has not completed at least two (2) years of service since his or her last hire date (or such lesser period of time as may be determined by the Administrator in its discretion), (ii) customarily works not more than twenty (20) hours per week (or such lesser period of time as may be determined by the Administrator in its discretion), (iii) customarily works not more than five (5) months per calendar year (or such lesser period of time as may be determined by the Administrator in its discretion), (iv) is a highly compensated employee within the meaning of Section 414(q) of the Code, or (v) is a highly compensated employee within the meaning of Section 414(q) of the Code with compensation above a certain level or is an officer or subject to the disclosure requirements of Section 16(a) of the Securities Exchange Act of 1934, as amended, provided the exclusion is applied with respect to each Offering Period in an identical manner to all highly compensated individuals of the Company or Designated Subsidiary whose Employees are participating in that Offering Period.  Each exclusion shall be applied with respect to an Offering Period in a manner complying with U.S. Treasury Regulation Section 1.423‐2(e)(2)(ii).  For Offering Periods under the Non-423 Plan Component, Employee will also mean any other employee of the Company or Designated Subsidiary to the extent that Applicable Laws require participation in the Plan to be extended to such employee, as determined by the Administrator.

		
	(j)
	“Enrollment Date” shall mean the date that is seven (7) calendar days prior to the first day of each Offering Period or such other date determined by the Administrator on or prior to that Offering Period in a uniform and non-discriminatory basis.

		
	(k)
	“Exercise Date” shall mean the last day of each Offering Period.

		
	(l)
	“Fair Market Value” shall mean, as of any date, the value of Common Stock determined as follows:

		
	(i)
	If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the New York Stock Exchange, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system for the last market trading day on the date of such determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable, or;

		
	(ii)
	If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value of a share of Common Stock shall be the mean between the high bid and low asked prices for the Common Stock on the date of such determination, 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, the Fair Market Value shall be determined in good faith by the Administrator.

		
	(m)
	“Non-423 Plan Component” shall mean a component of this Plan that is not intended to meet the requirements set forth in Section 423(b) of the Code.

		
	(n)
	“Offering Period” shall mean a period of approximately six (6) months during which an option granted pursuant to the Plan may be exercised.  The duration of Offering Periods may be changed pursuant to Sections 4 and 20 of this Plan.

		
	(o)
	“Participant” shall mean an eligible Employee who has enrolled in an Offering Period in accordance with Section 5 of the Plan.

		
	(p)
	“Plan” shall mean this Plantronics, Inc. 2002 Employee Stock Purchase Plan, as amended and restated from time to time.

		
	(q)
	“Purchase Price” shall mean an amount equal to 85% of the Fair Market Value of a share of Common Stock on the first day of the Offering Period or on the Exercise Date, whichever is lower; provided, however, that the Purchase Price may be adjusted by the Administrator pursuant to Section 20.

		
	(r)
	“Reserves” shall mean the number of shares of Common Stock covered by each option under the Plan which have not yet been exercised and the number of shares of Common Stock which have been authorized for issuance under the Plan but not yet placed under option.

		
	(s)
	“Subscription Agreement” shall mean a form(s) of agreement approved by the Administrator from time to time authorizing payroll deductions or a cash contribution, if applicable, in connection with a Participant’s enrollment in one or more Offering Periods under this Plan.

		
	(t)
	“Subsidiary” shall mean a corporation, domestic or foreign, of which not less than 50% of the voting shares are held by the Company or a Subsidiary, whether or not such corporation now exists or is hereafter organized or acquired by the Company or a Subsidiary.

		
	3.
	Eligibility.

		
	(a)
	Subject to Section 3(b) below, any Employee who shall be employed by the Company or a Designated Subsidiary for a minimum of seven (7) calendar days prior to the first day of an Offering Period, or such other length of time determined by the Administrator on or prior to that Offering Period shall be eligible to participate in the Plan; provided that for purposes of Participants participating in the Code Section 423 Plan Component, it will be applied in a uniform and non-discriminatory basis.

		
	(b)
	Employees who are citizens or residents of a non-U.S. jurisdiction (without regard to whether they also are citizens or residents of the United States or resident aliens (within the meaning of Section 7701(b)(1)(A) of the Code)) may be excluded from participation in the Plan or an Offering Period if the participation of such Employees is prohibited under the laws of the applicable jurisdiction or if complying with the laws of the applicable jurisdiction would cause the Plan or an offering under the Plan to violate Section 423 of the Code.

		
	(c)
	Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an option under the Plan

		
	(i)
	to the extent that, immediately after the grant, such Employee (or any other person whose stock would be attributed to such Employee pursuant to Section 424(d) of the Code) would own capital stock of the Company and/or hold outstanding options to purchase such stock possessing five percent (5%) or more of the total combined voting power or value of all classes of the capital stock of the Company or of any Subsidiary;

		
	(ii)
	to the extent that his or her rights to purchase stock under all employee stock purchase plans (as defined in Section 423 of the Code) of the Company and its Subsidiaries accrues at a rate which exceeds twenty-five thousand dollars ($25,000) worth of Common Stock (determined at the Fair Market Value of the shares at the time such option is granted) for each calendar year in which such option is outstanding at any time; or

		
	(iii)
	to purchase more than 5,000 shares in any Offering Period.

		
	4.
	Offering Periods.  The Plan shall be implemented by consecutive Offering Periods with the Offering Period commencing on or around February 15 and August 15 of each year and ending approximately six (6) months later on August 15 and February 15, respectively.  If the commencement or ending date of any Offering Period occurs on a weekend, holiday or other day on which any stock exchange or national market system on which the Common Stock is listed is not open, the last market trading date immediately prior shall be the applicable Offering Period commencement or ending date.  The Administrator shall have the power to change the duration of Offering Periods (including the commencement dates thereof) with respect to future offerings without stockholder approval if such change is announced prior to the scheduled beginning of the first Offering Period to be affected thereafter.

		
	5.
	Participation.  An eligible Employee may become a Participant by submitting a properly completed Subscription Agreement to the Company either through an on-line enrollment process established by the Administrator or submitting a hard copy to the Company’s stock administration manager on or prior to the applicable Enrollment Date; provided that for purposes of Participants participating in the Code Section 423 Plan Component, the processing of enrollments, whether on-line or via hard copy, will be applied in a uniform and non-discriminatory basis.

		
	6.
	Payment Methods.

		
	(a)
	At the time a Participant submits his or her Subscription Agreement, he or she shall elect to have payroll deductions made on each payday during the Offering Period at a rate equal to not less than one percent (1.0%) and not exceeding ten percent (10.0%) (in whole percentages only) of his or her Compensation payable on each payday during the Offering Period.

		
	(b)
	Any such payroll deductions for a Participant shall commence on the first payday following the first day of the Offering Period and shall end on the last payday in the Offering Period to which such authorization is applicable, unless sooner terminated by the Participant as provided in Section 10 hereof.

		
	(c)
	Notwithstanding the foregoing and lieu of the payroll deductions in subsection (a) above, the Administrator may, for any Offering Period, permit each Participant to make a lump sum cash contribution by check payable to the Company in an amount equal to not less than one percent (1.0%) and not exceeding ten percent (10.0%) (in whole percentages only) of his or her Compensation payable during the Offering Period, subject to such conditions and limitations as the Administrator may determine from time to time in its discretion; provided that for purposes of Participants participating in the Code Section 423 Plan Component, such conditions and limitations will be applied in a uniform and non-discriminatory basis.

		
	(d)
	All payroll deductions or any cash contribution, if applicable, made by or for a Participant shall be credited to his or her account under the Plan.  

		
	(e)
	A Participant may discontinue his or her participation in the Plan as provided in Section 10 hereof.  A Participant’s Subscription Agreement shall remain in effect for successive Offering Periods unless terminated as provided in Section 10 hereof or modified by completion and timely submission of a new Subscription Agreement prior to the applicable successive Offering Period Enrollment Date.

		
	(f)
	Notwithstanding the foregoing, a Participant’s payroll deductions or cash contribution, if applicable, may be decreased at any time to the extent necessary to comply with Section 423(b)(8) of the Code and Section 3(c) hereof.  Any payroll deductions shall recommence at the rate provided in such Participant’s Subscription Agreement at the beginning of the first Offering Period which is scheduled to end in the following calendar year, unless the Participant terminates the Subscription Agreement as provided in Section 10 hereof.

		
	(g)
	At the time the option is exercised, in whole or in part, or at the time some or all of the Common Stock issued under the Plan is disposed of, the Participant must make adequate provision for the Company’s federal, state, or other tax withholding obligations, if any, which arise upon the exercise of the option or the disposition of the Common Stock.  At any time, the Company may, but shall not be obligated to, withhold from the Participant’s pay the amount necessary for the Company to meet applicable withholding obligations, including any withholding required to make available to the Company any tax deductions or benefits attributable to sale or early disposition of Common Stock by the Participant.

		
	7.
	Grant of Option.  On the first day of each Offering Period, each Participant shall be granted an option to purchase on the Exercise Date of such Offering Period (at the applicable Purchase Price) up to a number of shares of Common Stock determined by dividing such Participant’s payroll deductions or cash contribution, if applicable, accumulated prior to such Exercise Date and retained in the Participant’s account as of the Exercise Date by the applicable Purchase Price; provided that such purchase shall be subject to the limitations set forth in Sections 3(c) and 12 hereof.  Exercise of the option shall occur as provided in Section 8 hereof, unless the Participant has previously withdrawn pursuant to Section 10 hereof.  The Administrator may, for future Offering Periods, increase or decrease, in its absolute discretion, the maximum number of shares of Common Stock a Participant may purchase during an Offering Period.  The option shall expire on the last day of the Offering Period.

		
	8.
	Exercise of Option.  Unless a Participant previously withdraws from the Plan as provided in Section 10 hereof, his or her option for the purchase of shares shall be exercised automatically on the Exercise Date, and the maximum number of shares subject to the option shall be purchased for such Participant at the applicable Purchase Price with the accumulated payroll deductions or cash contribution, if applicable, in his or her account. If the Exercise Date of any Offering Period occurs on a weekend, holiday or other day on which any stock exchange or national market system on which the Common Stock is listed is not open, the applicable Offering Period Exercise Date shall be the last market trading date immediately prior to the Exercise Date.  Fractional shares may be purchased subject to the limitations set forth in Section 3(c).  Any payroll deductions or cash contribution, if applicable, accumulated in a Participant’s account which are in excess of the amounts permissible for the purchase of shares authorized under Section 3(c), shall be returned to the Participant as soon as administratively practicable after the Exercise Date of the relevant Offering Period. During a Participant’s lifetime, a Participant’s option to purchase shares hereunder is exercisable only by him or her.

		
	9.
	Delivery.  As promptly as practicable after each Exercise Date, the Company shall cause to be delivered to each Participant, as appropriate, the shares purchased upon exercise of his or her option.

		
	10.
	Withdrawal.

		
	(a)
	A Participant may withdraw the entire balance credited to his or her account and not yet used to exercise his or her option under the Plan at any time through an on-line process established by the Administrator or by giving written notice to the Company in a form(s) approved by the Administrator from time to time at least two (2) business days prior to the applicable Exercise Date.  Notwithstanding the foregoing, for purposes of Participants participating in the Code Section 423 Plan Component, the processing of withdrawals, whether on-line or via hard copy, will be applied in a uniform and non-discriminatory basis.  The entire balance credited to a Participant’s account shall be paid to such Participant promptly after timely receipt of the Participant’s notice of withdrawal pursuant to this subsection, in which case such Participant’s option for the Offering Period shall be automatically terminated, and no further payroll deductions or cash contribution, if applicable, for the purchase of shares shall be made for such Offering Period.  If a Participant withdraws from an Offering Period (or submits a withdrawal request pursuant to this subsection that is not timely received for a particular Offering Period), his or her participation in the Plan shall not resume at the beginning of the succeeding Offering Period unless the Participant re-enrolls in the Plan by timely submitting to the Company a new Subscription Agreement.

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

		
	11.
	Termination of Employment.  Upon a Participant’s ceasing to be an Employee for any reason, he or she shall be deemed to have automatically and immediately elected to withdraw from the Plan and the entire balance then credited to such Participant’s account shall be returned to such Participant or, in the case of his or her death, to the person or persons entitled thereto under Section 15 hereof, and such Participant’s option shall be automatically terminated.  The foregoing shall apply whether or not a Participant ceases to be an Employee within the two (2) business days prior to an applicable Exercise Date referred to in Section 10(a) above.

		
	12.
	Interest.  No interest shall accrue on any amounts credited to a Participant’s account under the Plan, except as may be required by Applicable Laws, as determined by the Administrator, for Participants in the Non-423 Plan Component (or the Code Section 423 Plan Component if permitted under Section 423 of the Code).

		
	13.
	Stock.

		
	(a)
	Subject to adjustment upon changes in capitalization of the Company as provided in Section 19 hereof, the maximum number of shares of the Common Stock available for sale under the Plan shall be 2,700,000 shares.  If, on a given Exercise Date, the number of shares with respect to which options for all Participants are to be exercised exceeds the number of shares then available under the Plan, the Company shall make a pro rata allocation of the shares remaining available for purchase in as uniform a manner as shall be practicable and as it shall determine to be equitable; provided, however, for purposes of Participants participating in the Code Section 423 Plan Component, any pro rata allocation, will be applied in a uniform and non-discriminatory basis.

		
	(b)
	The Participant shall have no interest, voting right or rights to dividends in connection with shares covered by his or her option until such option has been exercised.

		
	(c)
	Shares to be delivered to a Participant under the Plan shall be registered in the name of the Participant. 

		
	14.
	Administration.  The Plan shall be administered by the Administrator.  The Administrator shall have full and exclusive discretionary authority to construe, interpret and apply the terms of the Plan, to determine eligibility, to adjudicate all disputed claims filed under the Plan and to establish such procedures that it deems necessary for the administration of the Plan (including, without limitation, to adopt such procedures and sub-plans as are necessary or appropriate to permit the participation in the Plan by Employees who are foreign nationals or employed outside the U.S., the terms of which sub-plans may take precedence over other provisions of this Plan, with the exception of Section 13(a) hereof, but unless otherwise superseded by the terms of such sub-plan, the provisions of this Plan shall govern the operation of such sub-plan).  Unless otherwise determined by the Administrator, the Employees eligible to participate in each sub-plan will participate in a separate offering.  Without limiting the generality of the foregoing, the Administrator is specifically authorized to adopt rules and procedures regarding eligibility to participate, the definition of Compensation, making of payroll deductions and/or cash contributions under the Plan, handling of payroll deductions and/or cash contributions, establishment of any bank or trust accounts to hold payroll amounts deducted and/or cash contributions, any payment of interest, conversion of local currency, obligations to pay payroll tax, determination of beneficiary designation requirements, withholding procedures and handling of stock certificates that vary with applicable local requirements.  The Administrator also is authorized to determine that, to the extent permitted by U.S. Treasury Regulation Section 1.423‐2(f), the terms of an option granted under the Plan or an Offering Period to citizens or residents of a non-U.S. jurisdiction will be less favorable than the terms of options granted under the Plan or the same Offering Period to Employees resident solely in the U.S.  Every finding, decision and determination made by the Administrator shall, to the full extent permitted by law, be final and binding upon all parties, and shall be given the maximum possible deference permitted by Applicable Laws.

		
	15.
	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 the Plan in the event of such Participant’s death subsequent to an Exercise Date on which the option is exercised but prior to delivery to such Participant 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 the Plan in the event of such Participant’s death prior to exercise of an option.  If a Participant is married and the designated beneficiary is not the spouse, spousal consent shall be required for such designation to be effective.

		
	(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 the Plan who is living at the time of such Participant’s death, the Company shall deliver such shares and/or cash to the executor or administrator of the estate of the Participant, or if to the knowledge of the Company no such executor or administrator has been appointed, the Company, in its discretion, may retain the shares and/or cash until such time as a representative of the Participant’s estate is so appointed or provides to the Administrator an order or instructions from a court or administrative body of competent jurisdiction authorizing the release of such shares and/or cash to the representative.  The Administrator may, prior to the release of any shares and/or cash, require execution of an indemnification or other form of agreement relieving the Company, Administrator and all Company agents and representatives from liability for invalid release of any shares and/or cash.

		
	(c)
	Any beneficiary designations made pursuant to this Section shall be made in the form and manner determined by the Administrator from time to time in its discretion.

		
	16.
	Transferability.  Neither payroll deductions or any cash contribution, if applicable, credited to a Participant’s account nor any rights with regard to the exercise of an option or to receive shares under the 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 15 hereof) by the Participant.  Any such attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw funds from an Offering Period in accordance with Section 10 hereof.

		
	17.
	Use of Funds.  All payroll deductions and/or cash contributions received or held by the Company under the Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such amounts unless otherwise required by Applicable Laws, as determined by the Administrator.

		
	18.
	Reports.  Individual accounts shall be maintained for each Participant.  Statements of account shall be given to Participants at least annually, which statements shall set forth the amounts of payroll deductions and/or cash contributions, if applicable, made by or for the Participant, the Purchase Price, the number of shares of Common Stock purchased and the remaining cash balance, if any.

		
	19.
	Adjustments Upon Changes in Capitalization, Dissolution, Liquidation, Merger or Asset Sale.

		
	(a)
	Changes in Capitalization.  Subject to any required action by the stockholders of the Company, the Reserves, the maximum number of shares each Participant may purchase per Offering Period (pursuant to Section 7), as well as the price per share and the number of shares of Common Stock covered by each option under the Plan which has not yet been exercised shall be proportionately adjusted for any increase or decrease in the number of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock, or any other increase or decrease in the number of shares of Common Stock effected without receipt of consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.”  Such adjustment shall be made by the Administrator, whose determination in that respect shall be final, binding and conclusive.  Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to an option.

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

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

		
	20.
	Amendment or Termination.

		
	(a)
	The Administrator, in its sole discretion, may amend, suspend, or terminate the Plan, or any part thereof, at any time and for any reason.  Except as provided in Section 19 hereof, no such termination can affect options previously granted, provided that an Offering Period may be terminated by the Administrator on any Exercise Date if the Administrator determines that the termination of the Offering Period or the Plan is in the best interests of the Company and its stockholders.  Except as provided in Sections 19 and 20 hereof, no amendment may make any change in any option theretofore granted which adversely affects the rights of any Participant.

		
	(b)
	Without stockholder consent and without regard to whether any Participant’s rights may be considered to have been “adversely affected,” the Administrator shall be entitled to change the Offering Periods, limit the frequency and/or number of changes in the amount withheld or contributed, if applicable, during an Offering Period, establish the exchange ratio applicable to amounts withheld or contributed, if applicable, in a currency other than U.S. dollars, permit payroll withholding and/or contributions, if applicable, in excess of the amount designated by a Participant in order to adjust for delays or mistakes in the Company’s processing of properly completed withholding or contribution elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each Participant properly correspond with a Participant’s payroll deductions or cash contribution, if applicable, and establish such other limitations or procedures as the Administrator determines in its sole discretion advisable which are consistent with the Plan.

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

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

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

		
	(iii)
	allocating shares.

		
	(d)
	Such modifications or amendments shall not require stockholder approval or the consent of any Participants.

		
	21.
	Notices.  All notices or other communications by a Participant to the Company under or in connection with the 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.

		
	22.
	Conditions Upon Issuance of Shares.

		
	(a)
	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 of 1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, and the requirements of any stock exchange upon which the shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance.

		
	(b)
	As a condition to the exercise of an option, the Company may require a Participant to represent and warrant at the time of any such exercise that the shares are being purchased only for investment and without any present intention to sell or distribute such shares if, in the opinion of counsel for the Company, such a representation is required by any of the aforementioned applicable provisions of law.

		
	23.
	Code Section 409A.  The Code Section 423 Plan Component is exempt from the application of Code Section 409A.  The Non-423 Plan Component is intended to be exempt from Code Section 409A under the short-term deferral exception and any ambiguities herein will be interpreted to so be exempt from Code Section 409A.  In furtherance of the foregoing and notwithstanding any provision in the Plan to the contrary, if the Administrator determines that an option granted under the Plan may be subject to Code Section 409A or that any provision in the Plan would cause an option under the Plan to be subject to Code Section 409A, the Administrator may amend the terms of the Plan and/or of an outstanding option granted under the Plan, or take such other action the Administrator determines is necessary or appropriate, in each case, without the Participant’s consent, to exempt any outstanding option or future option that may be granted under the Plan from or to allow any such options to comply with Code Section 409A, but only to the extent any such amendments or action by the Administrator would not violate Code Section 409A.  Notwithstanding the foregoing, the Company shall have no liability to a Participant or any other party if the option to purchase Common Stock under the Plan that is intended to be exempt from or compliant with Code Section 409A is not so exempt or compliant or for any action taken by the Administrator with respect thereto.  The Company makes no representation that the option to purchase Common Stock under the Plan is compliant with Code Section 409A.

		
	24.
	Term of Plan.  The Plan shall become effective upon its adoption by the Administrator or its approval by the stockholders of the Company, if applicable, and shall continue in effect until terminated under Section 20 hereof.

		
	25.
	Stockholder Approval.  The Plan will be subject to approval by the stockholders of the Company in the manner and to the degree required under Applicable Laws.

		
	26.
	Governing Law; Severability.  The Plan and all determinations made and actions taken thereunder shall be governed by the internal substantive laws, and not the choice of law rules, of the State of California, United States and construed accordingly, to the extent not superseded by applicable U.S. federal law.  If any provision of the Plan shall be held unlawful or otherwise invalid or unenforceable in whole or in part, the unlawfulness, invalidity or unenforceability shall not affect any other provision of the Plan or part thereof, each of which shall remain in full force and effect.

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