Document:

Earn-out Agreement

 EXHIBIT 10.3 
 EARNOUT AGREEMENT 
 This EARNOUT AGREEMENT
(this “Agreement”) is entered into this 31st day of July, 2008 by and between Orthodyne Electronics Corporation (“Orthodyne”)
and Kulicke and Soffa Industries, Inc. (the “Company,” and together with Orthodyne, the “Parties”). The Parties are entering into this Agreement in connection with Orthodyne’s sale of the Purchased Assets to the Company,
pursuant to an Asset Purchase Agreement, dated as of July 31, 2008, by and among Orthodyne and the Company (the “Purchase Agreement”). Capitalized terms used herein without definition shall have the meanings ascribed to such terms in
the Purchase Agreement. 
 WHEREAS, as part of the transactions contemplated in the Purchase Agreement, Orthodyne shall be entitled to
certain payments in addition to those set forth in the Purchase Agreement based upon the financial performance of the Business. 
 WHEREAS,
Orthodyne and the Company have agreed that calculation and payment of such earnout amounts is to be made in accordance with the terms of this Agreement. 
 NOW, THEREFORE, in consideration of the premises and of the respective covenants and provisions contained herein, Orthodyne and the Company agree as follows: 
  

	 	1.	Definitions. 

 “Additional
Earnout” means, with respect to the three-year period following the Commencement Date, up to an aggregate of $10 million, the payment of which shall be made in cash based on the formula set forth on Exhibit A hereto. 
 “Base Earnout” means, with respect to each of the twelve-month periods ending on the first, second and third anniversary of the
Commencement Date, up to an aggregate of $30 million, the payment of which shall be made in cash based on the formula set forth on Exhibit A hereto. 
 “Budgeted Gross Profit” means, for each Earnout Period, the amount set forth on Exhibit A. 
 “Commencement Date” shall mean the Closing Date if the Closing Date coincides with the first day of a fiscal quarter of the Company or, if the Closing Date does not coincide with the first day of a fiscal quarter of the
Company, the Commencement Date shall be the first day of the fiscal quarter succeeding the Closing Date. 
 “Earnout
Payment” means each payment made pursuant to Section 2(a) below on account of Base Earnout and Additional Earnout. 
 “Earnout Periods” means the twelve-month periods ending on the first, second and third anniversaries of the Commencement Date, respectively. 
 “Forecast” means the forecast provided by Orthodyne to the Company on which the Company’s valuation of the Business was based, which is set forth on Exhibit C. 

 “Gross Profit” shall have the meaning assigned to such term in Section 3(a).

 “Gross Profit Statement” shall have the meaning assigned to such term in Section 3(b)(i). 
 “Independent Accounting Firm” shall have the meaning assigned to such term in Section 3(b)(ii). 
 “Maximum Aggregate Earnout Amount” means $40 million. 
 “Term” means the period commencing on the Commencement Date and ending on the third anniversary thereof. 
  

	 	2.	Earnout Payment. 

 (a) Period for
Payment. The Budgeted Gross Profit, Base Earnout and Additional Earnout for each of the Earnout Periods shall be as set forth on Exhibit A. 
 (b) Earnout Payment. 
 (i) For each Earnout Period during the Term, the Company shall, pursuant to
Section 3, calculate the Gross Profit for such period and shall pay to Orthodyne the Base Earnout that corresponds to the amount of Gross Profit set forth in the Base Earnout table on Exhibit A with respect to such Earnout Period;
provided that the Base Earnout for the first Earnout Period shall not exceed $10 million and the aggregate Base Earnout for the first and second Earnout Periods shall not exceed $20 million. 
 (ii) If the cumulative Gross Profit during the Term, as determined pursuant to Section 3, exceeds the Budgeted Gross Profit for the Term, the
Company shall pay to Orthodyne the Additional Earnout attributable to such amount of Gross Profit set forth in the Additional Earnout table on Exhibit A. 
 (iii) The Earnout Payment with respect to each Earnout Period shall be paid to Orthodyne as soon as practicable after the amount of the Earnout Payment has been determined and any dispute with respect thereto has been
settled pursuant to Section 3. 
 (iv) Orthodyne shall not be entitled to any interest on any payments under this Agreement.

 (v) For the sake of clarity, Exhibit A hereto sets forth examples of the application of this Section 2 to different amounts
of Gross Profit. 
 (c) Right of Setoff. The Company shall have the right to withhold and set off, against any amount due Orthodyne
hereunder, any amount owed by Orthodyne to the Company or the Company pursuant to any claim for indemnification or payment of damages to which the Company may be entitled under the Purchase Agreement or any other agreement entered into in connection
with the transactions contemplated therein. 
  

 - 2 - 

	 	3.	Computation of Gross Profit. 

 (a)
Calculation of Gross Profit. “Gross Profit” shall mean the gross profit of the Business for any Earnout Period, as determined in accordance with GAAP and shall be calculated as set forth on Exhibit B hereto. 
 (b) Time of Determination. 
 (i) For
each quarter during the Term, the Company shall prepare or cause to be prepared and delivered to Orthodyne, within 10 days after completion by the Company’s independent accountants of their audit or review, as applicable, of the Company’s
financial statements, but in no event more than 10 days following the date the Company files its Quarterly Report on Form 10-Q or its Annual Report on Form 10-K, as applicable, a written statement setting forth the computation of Gross Profit of the
Company for such quarter (the “Gross Profit Statement”). During the 10 Business Days immediately following Orthodyne’s receipt of the Gross Profit Statement and during the period in which any dispute with respect thereto is pending
and unresolved, the Company shall provide Orthodyne reasonable access during normal business hours to such books and records of the Company as Orthodyne may reasonably request in order to review and verify the Company’s calculation of Gross
Profit as set forth in the Gross Profit Statement. The Gross Profit set forth in such Gross Profit Statement shall become final and binding upon the Parties 10 Business Days following Orthodyne’s receipt thereof unless Orthodyne gives written
notice of their disagreement to the Company prior to such date, setting forth in reasonable detail the basis for such disagreement. 
 (ii)
If Orthodyne shall have any objections to the Company’s calculation of Gross Profit as set forth on the Gross Profit Statement, the Company and Orthodyne shall attempt in good faith to reach an agreement as to the matter in dispute. If the
Company and Orthodyne fail to resolve such dispute within 20 Business Days after the Company’s receipt of such objection (or such longer period as mutually agreed upon by the Company and Orthodyne), then any such dispute may thereafter be
referred by either Party for resolution to the Nonpartisan Accountants. The Company and Orthodyne shall take, or cause to be taken, all actions and do, or cause to be done, all things necessary to cooperate with the Independent Accounting Firm in
its resolution of the dispute. The determination of the Independent Accounting Firm shall be made as promptly as practicable and shall be final, binding and conclusive on all parties hereto. The fees and expenses of the Independent Accounting Firm
incurred in resolving the dispute shall be borne by Orthodyne, unless the final determination of Gross Profit, after resolution of such dispute, exceeds the Company’s calculation of Gross Profit set forth on the Gross Profit Statement by more
than 5%, in which case such fees and expenses shall be borne by the Company. 
 (c) Time of Payment. Any payments owed to Orthodyne
pursuant to this Agreement shall be made within 10 Business Days following the date upon which the applicable Gross Profit Statement for the fourth quarter of any Earnout Period becomes final and binding pursuant to Section 3(b)(i) above or any
dispute with respect to such Gross Profit Statement is resolved pursuant to Section 3(b)(ii) above. 
  

 - 3 - 

	 	4.	Management of the Business. 

 (a) Subject to
applicable Law and the provisions of this Section 4, the rules and regulations of NASDAQ and the Company’s obligations to its shareholders, the Company shall be entitled to do any act (or refrain therefrom) in the conduct of the Business
if they act in good faith, consistent with reasonable business practices and reasonably consider such action (or determination not to act) to be necessary and not for the purpose of adversely affecting the Gross Profit of the Business or impairing
the ability of the Business to maximize Gross Profit; provided that if the Company proposes to take any action outside of the ordinary course of business that could reasonably be expected to have a material adverse effect on Gross Profit, it shall
notify Orthodyne and if Orthodyne reasonably believes that such action would have a material adverse effect on Gross Profit, then the Company and Seller shall negotiate in good faith with respect to adjusting the Budgeted Gross Profit for any
periods affected thereby or otherwise amending the methodology for calculation of Earnout Payments hereunder. 
 (b) Notwithstanding the
provisions of Section 4(a) above, during the Term, the Company shall: 
 (i) maintain a financial record keeping system that enables the
Company to separately account for all items of revenue and expense of the Business necessary to calculate Gross Profit hereunder; 
 (ii)
subject to the provisions of Section 4(c) below, enable Orthodyne’s current management team to retain reasonable authority to make decisions regarding the operation of the Business consistent with maximizing both Gross Profit and the
operating results of the Company; and 
 (iii) provide the Business with such commercially reasonable personnel, technical and financial
resources as are appropriate to operate the Business consistent with the Forecast. The determination of whether such resources are consistent with the level of resources underlying the Forecast shall be measured by ratios, including the ratios of
operating expenses to revenue, the ratio of capital expenditures to revenue, the ratio of working capital to revenue and the ratio of gross profit to revenue; provided, that any adjustment to resources shall be subject to a commercially reasonable
time frame. 
 (c) During the Term, the Company shall consult with the Named Individual(s) then employed by the Company with respect to the
selection of the President of the Company’s Orthodyne Division or his successor. 
 (d) If (i) the Company sells or transfers to an
unrelated third party all or substantially all of the Business, including substantially all of the assets used by the Company in conducting the Business, prior to the end of the Term and (ii) such third party does not assume all of the
Company’s obligations under this Agreement, then the Company shall pay to Orthodyne (x) $10.0 million in Base Earnout for each Earnout Period not yet completed as of the date of such sale or transfer, plus (y) in the event that the
maximum amount of Base Earnout has been paid, or is payable pursuant to this Section 4(d), and the cumulative Gross Profit through the date of such sale or transfer, if it were to continue at the same rate for the remainder of the 

  

 - 4 - 

 
Earnout Period, would result in payment in full of the Additional Earnout, the maximum amount of Additional Earnout. Such amount will be paid to Orthodyne
within 30 days of the closing of such sale or transfer. 
  

	 	5.	Miscellaneous. 

 (a) Entire Agreement.
This Agreement and the documents referred to herein contain the entire agreement between the Parties and supersede any prior understandings, agreements, or representations by or between the Parties, written (including electronic) or oral, which may
have related to the subject matter hereof in any way. 
 (b) Succession and Assignment. This Agreement shall be binding upon and inure
to the benefit of the Parties named herein and their respective successors and permitted assigns. No Party may assign either this Agreement or any of its rights, interests, or obligations hereunder without the prior written approval of the other
Parties, provided that (i) the Company may assign this Agreement or any of its rights, interests, or obligations hereunder to any of its Affiliates without the approval of Orthodyne, provided, that, notwithstanding any such assignment, the
Company shall guarantee the payment obligations hereunder, (ii) subject to Section 4(d), the Company may assign this Agreement or any of its rights, interests, or obligations hereunder to a third party in connection with the sale of all or
substantially all of the Business to such third party, and (iii) Orthodyne may assign this Agreement or any of its rights, interests, or obligations hereunder to a trust established for the benefit of such shareholders without the approval of
the Company. 
 (c) Counterparts. This Agreement may be executed in two or more counterparts, and by the Parties in separate
counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement. 
 (d) Headings. The descriptive headings herein are inserted for convenience of reference only and are not intended to be part of or to affect the meaning or interpretation of this Agreement. 
 (e) Governing Law. All questions concerning the construction, validity, and interpretation of this Agreement shall be governed by and construed in
accordance with the domestic laws of the State of California, without giving effect to any choice of law or conflict of law provision that would cause the application of the laws of any jurisdiction other than the State of California. Each of the
Parties hereto hereby irrevocably and unconditionally consents to submit to the exclusive jurisdiction of the state or federal courts of the State of California for any Litigation arising out of or relating to this Agreement and the transactions
contemplated hereby (and agrees not to commence any litigation, proceeding or action relating thereto except in such courts). Each of the Parties hereto hereby irrevocably and unconditionally waives any objection to the laying of venue of any
Litigation arising out of this Agreement or the transactions contemplated hereby in the state or federal courts of the State of California and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court
that any such Litigation, proceeding or action brought in any such court has been brought in an inconvenient forum. Each Party hereto hereby consents to process being served in any such Litigation by the mailing of a copy thereof to the address set
forth in Section 5(h) below and 

  

 - 5 - 

 
agrees that such service upon receipt shall constitute good and sufficient service of process or notice thereof. Nothing in this Section 5(e) shall
affect or eliminate any right to serve process in any other manner contemplated by applicable Law. 
 (f) Amendments and Waivers. This
Agreement may be amended and any provision of this Agreement may be waived only if such amendment or waiver is set forth in a writing executed by each of the Parties. No course of dealing between or among any Persons having any interest in this
Agreement shall be deemed effective to modify, amend, or discharge any part of this Agreement or any rights or obligations of any Party under or by reason of this Agreement. 
 (g) Severability. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under
applicable Law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable Law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such
provisions or the remaining provisions of this Agreement. 
 (h) Notices. All notices, demands, and other communications given or
delivered under this Agreement shall be in writing and shall be deemed to have been given, (a) when received if given in person, (b) on the date of electronic confirmation of receipt if sent by e-mail, facsimile or other wire transmission,
(c) three days after being deposited in the U.S. mail, certified or registered mail, postage prepaid, or (d) one day after being deposited with a reputable overnight courier. Notices, demands, and communications to the Parties shall,
unless another address is specified in writing, be sent to the address or facsimile number indicated below: 
 Notices to Orthodyne:

 Orthodyne Electronics Corporation 
 16700 Red Hill Avenue 
 Irvine, California 92606-4802 
 Attention: Jason M. Livingston 
 Facsimile: (949) 660- 8963 
 with a copy to: 
 Stradling Yocca
Carlson & Rauth 
 660 Newport Center Drive, Suite 1600 
 Newport Beach, California 92660 

			
	Attention:	 	Stephen T. Freeman, Esq.
		 	Mark L. Skaist, Esq.

 Facsimile: (949) 725-4100 
 Notices to the Company: 
 Kulicke and
Soffa Industries, Inc. 
 1005 Virginia Drive 
 Fort Washington, Pennsylvania 19034 
 Attention: General Counsel 
 Facsimile: (215) 784-6001 
  

 - 6 - 

 with a copy to: 
 Drinker Biddle & Reath LLP 
 Suite 300 
 1000 Westlakes Drive 
 Berwyn, PA 19312-2409

 Attn: Walter J. Mostek, Jr., Esq. 
 Phone: (610) 993-2200 
 Fax: (610) 993-8585 
 (i) Expenses. Except for payments to the Independent Accountant, if any, pursuant to Section 3(b)(ii), all costs and expenses (including, without limitation, legal fees and expenses) incurred in connection
with this Agreement shall be paid by the Party incurring such costs and expenses, provided, however, that in any collection action brought to enforce the Company’s obligation to make a payment pursuant to Section 3(c) with respect to an
Earnout Payment finally determined in accordance with Section 3, the prevailing party shall be entitled to reasonably attorneys’ fees and any other costs incurred in that proceeding in addition to any other relief to which it is entitled.

 (j) Incorporation of Exhibits. The Exhibits identified in this Agreement are incorporated herein by reference and made a part
hereof. 
 (k) Construction. 
 (i) All references in this Agreement to “dollars” or “$” shall mean United States dollars; 
 (ii) When a
reference is made in this Agreement to a section or article, such reference shall be to a section or article of this Agreement unless otherwise clearly indicated to the contrary. 
 (iii) Whenever the words “include”, “includes” or “including” are used in this Agreement they shall be deemed to be
followed by the words “without limitation.” 
 (iv) The words “hereof” “hereby” “herein” and
“herewith” and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement as a whole and not to any particular provision of this Agreement. 
 (v) The plural of any defined term shall have a meaning correlative to such defined term, and words denoting any gender shall include all genders. Where
a word or phrase is defined herein, each of its other grammatical forms shall have a corresponding meaning. 
 (vi) A reference to any Party
to this Agreement or any other agreement or document shall include such Party’s permitted successors and permitted assigns. 
  

 - 7 - 

 (vii) A reference to any legislation or to any provision of any legislation shall include any
modification or re-enactment thereof, any legislative provision substituted therefor and all regulations and statutory instruments issued thereunder or pursuant thereto. 
 (viii) The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted
jointly by the Parties, and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any provisions of this Agreement. 
 [Signature Page Follows] 
  

 - 8 - 

 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

  

			
	COMPANY:
	
	KULICKE AND SOFFA INDUSTRIES, INC.
		
	By:	 	 /s/ C. Scott Kulicke

	Print Name:	 	C. Scott Kulicke
	Its:	 	Chief Executive Officer
	
	ORTHODYNE:
	
	ORTHODYNE ELECTRONICS CORPORATION
		
	By:	 	 /s/ Gregg S. Kelly

	Print Name:	 	Gregg S. Kelly
	Its:	 	President

  

 - 9 -Secure Computing Corporation Amended and Restated Employee Stock Purchase Plan.

 EXHIBIT 4.5 
 SECURE COMPUTING CORPORATION 
 AMENDED AND RESTATED 
 EMPLOYEE STOCK PURCHASE PLAN 
 1. PURPOSE AND SCOPE OF PLAN. The purpose of this Secure Computing Corporation Amended and Restated Employee Stock Purchase Plan (the “Plan”) is to provide the employees of Secure Computing Corporation (the
“Company”) with an opportunity to acquire a proprietary interest in the Company through the purchase of its common stock and, thus, to develop a stronger incentive to work for the continued success of the Company. The Plan is intended to
be an “employee stock purchase plan” within the meaning of Section 423(b) of the Internal Revenue Code of 1986, as amended, and shall be interpreted and administered in a manner consistent with such intent. 
 2. DEFINITIONS. 
 2.1 The terms defined in this
section are used (and capitalized) elsewhere in this Plan: 
 (a) “AFFILIATE” means any corporation that is a
“parent corporation” or “subsidiary corporation” of the Company, as defined in Sections 424(e) and 424(f) of the Code or any successor provision, and whose participation in the Plan has been approved by the Board of Directors.

 (b) “BOARD OF DIRECTORS” means the Board of Directors of the Company. 
 (c) “CODE” means the Internal Revenue Code of 1986, as amended from time to time. 
 (d) “COMMITTEE” means three or more Disinterested Persons designated by the Board of Directors to administer the Plan under
Section 13. 
 (e) “COMMON STOCK” means the common stock, par value $.01 per share (as such par value may
be adjusted from time to time), of the Company. 
 (f) “COMPANY” means Secure Computing Corporation.

 (g) “COMPENSATION” means the gross cash compensation (including wage, salary, commission, bonus, and
overtime earnings) paid by the Company or any Affiliate to a Participant in accordance with the terms of employment, provided that for purposes of determining a Participant’s Compensation any election by the Participant to reduce his or her
gross cash compensation under Sections 125 or 401(k) of the Code shall be treated as if the Participant did not make such election. 
 (h) “DISINTERESTED PERSONS” means a member of the Board of Directors who is considered a disinterested person within the meaning of Exchange Act Rule 16b-3 or any successor definition. 
 (i) “ELIGIBLE EMPLOYEE” means any employee of the Company or an Affiliate who has been employed for at least one
consecutive month prior to the commencement of the applicable Offering Period and whose customary employment is at least 20 hours per week; provided, however, that an “Eligible Employee” shall not include any person who would be deemed,
for purposes of Section 423(b)(3) of the Code, to own stock or hold options to purchase stock possessing 5% or more of the total combined voting power or value of all classes of stock of the Company. 
 (j) “EXCHANGE ACT” means the Securities Exchange Act of 1934, as amended from time to time. 
 (k) “FAIR MARKET VALUE” of a share of Common Stock as of any date means, if the Company’s Common Stock is listed on a
national securities exchange or traded in the national market system, the mean between the high and low sale prices for such Common Stock on such exchange or market on said date, or, if no sale has been made on such exchange or market on said date,
on the last preceding day on which any sale shall have been made. If such determination of Fair Market Value is not consistent with the then current regulations of the Secretary of the Treasury applicable to plans intended to qualify as an
“employee stock 

 
purchase plan” within the meaning of Section 423(b) of the Code, however, Fair Market Value shall be determined in accordance with such
regulations. The determination of Fair Market Value shall be subject to adjustment as provided in Section 14. 
 (l) “OFFERING DATE” means the first day of each Offering Period. In the event the first day of an Offering Period does not fall on a business day, the next succeeding business day shall be deemed the Offering Date.

 (m) “PURCHASING DATE” means the last day of each Offering Period. In the event the last day of an Offering
Period does not fall on a business day, the next prior business day shall be deemed the Purchasing Date. 
 (n) “OFFERING PERIOD” means consecutive three month periods commencing each January 1, April 1, July 1 and October 1. Each Offering Period commencing on January 1 shall end March 31,
each Offering Period commencing on April 1 shall end on June 30, each Offering Period commencing on July 1 shall end on September 30 and each Offering Period commencing on October 1 shall end on December 31. The
Committee shall have the power to change Offering Periods without stockholder approval if such change is announced prior to the relevant Offering Period or prior to such other time as specified by the Committee. 
 (o) “PARTICIPANT” means an Eligible Employee who has elected to participate in the Plan in the manner set forth in
Section 4. 
 (p) “PLAN” means this Secure Computing Corporation Employee Stock Purchase Plan, as amended
from time to time. 
 (q) “RECORDKEEPING ACCOUNT” means the account maintained in the books and records of the
Company recording the amount withheld from each Participant through payroll deductions made under the Plan. 
 3. SCOPE OF THE
PLAN. Shares of Common Stock may be sold by the Company to Eligible Employees, as hereinafter provided, but not more than 3,700,000 shares of Common Stock (subject to adjustment as provided in Section 14) shall be sold to Eligible
Employees pursuant to this Plan. All sales of Common Stock pursuant to this Plan shall be subject to the same terms, conditions, rights and privileges. The shares of Common Stock delivered by the Company pursuant to this Plan may be acquired shares
having the status of any combination of authorized but unissued shares, newly issued shares, or treasury shares. 
 4. ELIGIBILITY AND
PARTICIPATION. To be eligible to participate in the Plan for a given Offering Period, an employee must be an Eligible Employee on the Offering Date of such Offering Period. An Eligible Employee may elect to participate in the Plan by
enrolling in the Plan during the enrollment time period and by the method prescribed by the Company, before the Offering Date of such Offering Period, that authorizes regular payroll deductions from Compensation beginning with the first payday in
such Offering Period and continuing until the Eligible Employee withdraws from the Plan, modifies his or her authorization, or ceases to be an Eligible Employee, as hereinafter provided. 
 5. AMOUNT OF COMMON STOCK EACH ELIGIBLE EMPLOYEE MAY PURCHASE. 
 5.1 Subject to the provisions of
this Plan, each Eligible Employee shall be offered the right to purchase on the Purchasing Date for each Offering Period the number of shares of Common Stock (including fractional shares) that can be purchased at the price specified in
Section 5.2 with the entire credit balance in the Participant’s Recordkeeping Account; provided that: 
 (a) no
such Eligible Employee, immediately after such a right to purchase is granted, would own, directly or indirectly, within the meaning of Section 423(b)(3) and Section 424(d) of the Code, stock or options to purchase stock possessing 5% or
more of the total combined voting power or value of all classes of the capital stock of the Company or all of its Affiliates or 

 (b) no such Eligible Employee’s rights to purchase stock under all employee
stock purchase plans (within the meaning of Section 423 of the Code) of the Company and its Affiliates accrues at a rate that exceeds $25,000 worth of stock (determined at the Fair Market Value of the shares on the Offering Date of the relevant
Offering Period) for each calendar year during which the rights to purchase such stock are outstanding at any time. 
 If the purchases by all Participants
would otherwise cause the aggregate number of shares of Common Stock to be sold under the Plan to exceed the number specified in Section 3, however, each Participant shall be allocated at a ratable portion of the maximum number of shares of
Common Stock which may be sold. 
 5.2 The purchase price of each share of Common Stock sold pursuant to this Plan will be the lesser of
(a) or (b) below: 
 (a) 85% of the Fair Market Value of such share on the first day of the Offering Period.

 (b) 85% of the Fair Market Value of such share on the last day of the Offering Period. 
 6. METHOD OF PARTICIPATION. 
 6.1 The Company
shall give notice to each Eligible Employee of the opportunity to purchase shares of Common Stock pursuant to this Plan and the terms and conditions for such offering. Such notice is subject to revision by the Company at any time prior to the date
of purchase of such shares. The Company contemplates that for tax purposes the first day of an Offering Period will be the date of the offering of such shares. 
 6.2 Each Eligible Employee who desires to participate in the Plan for an Offering Period shall signify his or her election to do so by the method prescribed by the Company. An Eligible Employee may elect to have
any whole percent of Compensation withheld, but not less than one percent (1%) and not more than ten percent (10%) of the Eligible Employee’s Compensation per pay period. An election to participate in the Plan and to authorize payroll
deductions as described herein must be made before the Offering Date of the Offering Period to which it relates and shall remain in effect unless and until such Participant withdraws from the Plan, modifies his or her authorization, or ceases to be
an Eligible Employee, as hereinafter provided. 
 6.3 Any Eligible Employee who does not make a timely election as provided in
Section 6.2, shall be deemed to have elected not to participate in the Plan. Such election shall be irrevocable for such Offering Period. 
 7.
RECORDKEEPING ACCOUNT. 
 7.1 The Company shall maintain a Recordkeeping Account for each Participant. Payroll deductions pursuant to
Section 6 will be credited to such Recordkeeping Accounts on each payday. 
 7.2 No interest will be credited to a
Participant’s Recordkeeping Account. 
 7.3 The Recordkeeping Account is established solely for accounting purposes, and all
amounts credited to the Recordkeeping Account will remain part of the general assets of the Company. 
 7.4 A Participant may not make
any separate cash payment into the Recordkeeping Account. 
 8. RIGHT TO ADJUST PARTICIPATION OR TO WITHDRAW. 
 8.1 A Participant may, at any time during an Offering Period, direct the Company to make no further deductions from his or her Compensation or to
increase or decrease the percentage amount of such deductions from future Compensation, subject to the limitation in Section 6.2. Upon any such action, future payroll deductions with respect to such Participant shall cease or shall be increased
or decreased in accordance with the Participant’s direction. 
 8.2 Any Participant who stops payroll deductions may not thereafter
resume payroll deductions during such Offering Period or in the event of a total withdrawal as set forth in Section 8.3, during any Offering Period that commences within three months after the end of the Offering Period from which the
Participant withdrew. 

 8.3 At any time before the end of an Offering Period, any Participant may withdraw from the Plan. In
such event, all future payroll deductions shall cease and the entire credit balance in the Participant’s Recordkeeping Account will be paid to the Participant, without interest, as soon as administratively possible. A Participant who withdraws
from the Plan will not be eligible to reenter the Plan until the next succeeding Offering Period that commences three months after the end of the Offering Period from which the Participant withdrew. 
 8.4 Notification of a Participant’s election to increase, decrease, or terminate deductions, or to withdraw from the Plan, shall be made by
indicating the election by the method prescribed by the Company. 
 9. TERMINATION OF EMPLOYMENT. If the employment of a
Participant is terminated for any reason, including death, disability, or retirement, the entire balance in the Participant’s Recordkeeping Account will be refunded to the former Participant, or to his or her estate or as set forth in
Section 20.5, without interest, as soon as administratively possible. 
 10. PURCHASE OF SHARES. 
 10.1 As of the Purchasing Date of each Offering Period, the entire credit balance in each Participant’s Recordkeeping Account will be used to
purchase shares (including fractional shares) of Common Stock (subject to the limitations of Section 5) unless the Participant has notified the Company that the Participant elects to withdraw from the Plan by the method prescribed by the
Company in advance of the Purchasing Date. Any amount in a Participant’s Recordkeeping Account that is not used to purchase shares pursuant to this Section 10.1 will be refunded to the Participant, without interest. 
 10.2 Shares of Common Stock acquired by each Participant shall be held in a general account maintained for the benefit of all Participants.

 10.3 Shares purchased under the Plan may be originally issued in certificated or un-certificated (such as book-entries representing
shares) form as determined by the Company. Certificates for the number of whole shares of Common Stock, determined as aforesaid, purchased by each Participant shall be issued and delivered to him or her only upon the request of the Participant or
his or her representative. Any such request shall be made by indicating this election by the method prescribed by the Company. 
 10.4 Dividends, if and when declared and paid, with respect to a Participant’s shares held in the general account shall, at the election of the Participant, either be paid to the Participant in cash or reinvested in additional
shares of Common Stock. Any such election shall be made or changed by indicating the election by the method prescribed by the Company. If a Participant fails to make such an election, all dividends, if and when declared and paid, with respect to the
Participant’s shares held in the general account will automatically be reinvested to purchase additional shares of Common Stock. 
 10.5 Each Participant will be entitled to vote all shares held for the benefit of such Participant in the general account. 
 11. RIGHTS AS A STOCKHOLDER. A Participant shall not be entitled to any of the rights or privileges of a stockholder of the Company with respect to such shares, including the right to receive any dividends which may be
declared by the Company, until (i) he or she actually has paid the purchase price for such shares and (ii) either the shares have been credited to his or her account or certificates have been issued to him or her, both as provided in
Section 10. 
 12. RIGHTS NOT TRANSFERABLE. A Participant’s rights under this Plan are exercisable only by the
Participant during his or her lifetime, and may not be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and distribution. Any attempt to sell, pledge, assign or transfer the same shall be null and void
and without effect. The amounts credited to a Recordkeeping Account may not be assigned, transferred, pledged or hypothecated in any way, and any attempted assignment, transfer, pledge, hypothecation or other disposition of such amounts will be null
and void and without effect. 
 13. ADMINISTRATION OF THE PLAN. This Plan shall be administered by the Committee, which is
authorized to make such uniform rules as may be necessary to carry out its provisions. The Committee shall determine any questions arising in the administration, interpretation and application of this Plan, and all such determinations shall be
conclusive and binding on all parties. 

 14. ADJUSTMENT UPON CHANGES IN CAPITALIZATION. In the event of any change in the Common
Stock of the Company by reason of stock dividends, split-ups, corporate separations, recapitalizations, mergers, consolidations, combinations, exchanges of shares and the like effected without receipt of any consideration by the Company, the
aggregate number and class of shares available under this Plan and the number, class and purchase price of shares subject to a right to purchase but not yet purchased under this Plan, shall be proportionately adjusted by the Committee. In the event
of a Change in Control each outstanding option will be assumed or an equivalent option substituted by the successor corporation or an Affiliate of the successor corporation. In the event that the successor corporation refuses to assume or substitute
for the option, the Offering Period with respect to which such option relates will be shortened by setting a new Purchasing Date (the “New Purchasing Date”) and will end on the New Purchasing Date. The New Purchasing Date will occur before
the date of the Company’s proposed Change in Control. The Committee will notify each Participant in writing prior to the New Purchasing Date that the Purchasing Date for the Participant’s option has been changed to the New Purchasing Date
and that the Participant’s option will be exercised automatically on the New Purchasing Date, unless prior to such date the Participant has withdrawn from the Offering Period as provided in Section 8 hereof. The Committee shall have the
discretion to determine which alternative will occur at the time of the Change of Control. 
 15. REGISTRATION OF
CERTIFICATES. Stock certificates will be registered in the name of the Participant, or jointly in the name of the Participant and another person, as the Participant may direct on an appropriate form filed with the Company. 
 16. AMENDMENT OF PLAN. The Board of Directors may at any time amend this Plan in any respect which shall not adversely affect the rights
of Participants pursuant to shares previously acquired under the Plan, except that, without stockholder approval on the same basis as required by Section 20.1, no amendment shall be made (i) to increase the number of shares to be reserved
under this Plan, (ii) to decrease the minimum purchase price, (iii) to withdraw the administration of this Plan from the Committee, or (iv) to change the definition of employees eligible to participate in the Plan. 
 17. EFFECTIVE DATE OF PLAN. The Plan originally became effective as of May 1, 1996. The Plan was amended and restated effective
October 23, 2007. All rights of Participants in any offering hereunder shall terminate at the earlier of (i) the day that Participants become entitled to purchase a number of shares of Common Stock equal to or greater than the number of
shares remaining available for purchase or (ii) at any time, at the discretion of the Board of Directors, after 30 days’ notice has been given to all Participants. Upon termination of this Plan, shares of Common Stock shall be issued to
Participants in accordance with Sections 5 and 10, and cash, if any, remaining in the Participants’ Recordkeeping Accounts shall be refunded to them, without interest, as if the Plan were terminated at the end of an Offering Period. 

18. GOVERNMENTAL REGULATIONS AND LISTING. All rights granted or to be granted to Eligible Employees under this Plan are expressly
subject to all applicable laws and regulations and to the approval of all governmental authorities required in connection with the authorization, issuance, sale or transfer of the shares of Common Stock reserved for this Plan, including, without
limitation, there being a current registration statement of the Company under the Securities Act of 1933, as amended, covering the shares of Common Stock purchasable on the Purchase Date of the Offering Period applicable to such shares, and if such
a registration statement shall not then be effective, the term of such Offering Period shall be extended until the first business day after the effective date of such a registration statement, or post-effective amendment thereto. If applicable, all
such rights hereunder are also similarly subject to effectiveness of an appropriate listing application to a national securities exchange or a national market system, covering the shares of Common Stock under the Plan upon official notice of
issuance. 
 19. NOTICE OF DISPOSITION. Each Participant shall notify the Company in writing if the Participant disposes of
any of the shares purchased in any Offering Period pursuant to the Plan if such disposition occurs within two years after the Offering Date of the relevant Offering Period or within one year from the Purchasing Date on which such shares were
purchased (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 the 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. 

 20. MISCELLANEOUS. 
 20.1 This Plan shall not be deemed to constitute a contract of employment between the Company and any Participant, nor shall it interfere with the right of the Company to terminate any Participant and treat him
or her without regard to the effect which such treatment might have upon him or her under this Plan. 
 20.2 Wherever appropriate as
used herein, the masculine gender may be read as the feminine gender, the feminine gender may be read as the masculine gender, the singular may be read as the plural and the plural may be read as the singular. 
 20.3 The Plan, and all agreements hereunder, shall be construed in accordance with and governed by the laws of the State of Delaware. 
 20.4 Delivery of shares of Common Stock or of cash pursuant to the Plan shall be subject to any required withholding taxes. A person entitled to
receive shares of Common Stock may, as a condition precedent to receiving such shares, be required to pay the Company a cash amount equal to the amount of any required withholdings. 
 20.5 A Participant may file a written designation of a beneficiary who is to receive any shares and cash, if any, from the Participant’s
Recordkeeping Account under the Plan in the event of such Participant’s death subsequent to the end of an Offering Period but prior to delivery to him or her 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 Recordkeeping Account under the Plan in the event of such Participant’s death prior to a Purchasing Date. 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 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.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00145-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00145-of-00352.parquet"}]]