Document:

exv10w2

Exhibit 10.2

INTEVAC,
INC.
2003 EMPLOYEE STOCK PURCHASE PLAN

AS AMENDED, FEBRUARY 2011

     The following constitute the provisions of the 2003 Employee Stock Purchase Plan of Intevac,
Inc. Capitalized terms used herein shall have the meanings assigned to such terms in the attached
Appendix.

     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. It is the intention of the Company to have the Plan qualify as an
“Employee Stock Purchase Plan” under Section 423 of the Code. The provisions of the Plan,
accordingly, shall be construed so as to extend and limit participation in a uniform and
nondiscriminatory basis consistent with the requirements of Section 423.

     2. Eligibility.

          (a) Offering Periods. Any individual who is an Employee as of the Enrollment Date of
any Offering Period under this Plan shall be eligible to participate in such Offering Period,
subject to the requirements of Section 4. Additionally, provided that an individual is an Employee
as of a Semi-Annual Entry Date within an Offering Period, such individual may enter such Offering
Period on such Semi-Annual Entry Date.

          (b) Limitations. Any provisions of the Plan to the contrary notwithstanding, no
Employee shall be granted a purchase right 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 or any Parent or
Subsidiary 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 Parent or Subsidiary of the Company, or (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 or any Parent or Subsidiary of the Company accrues at a rate which
exceeds twenty-five thousand dollars ($25,000) worth of stock (determined at the Fair Market Value
of the stock at the time such purchase right is granted) for each calendar year in which such
purchase right is outstanding at any time.

     3. Offering Periods. The Plan shall be implemented by a series of successive Offering
Periods, with such succession continuing thereafter until (i) the maximum number of shares of
Common Stock available for issuance under the Plan have been purchased, or (ii) terminated in
accordance with Section 19. Each new Offering Period shall commence on such date as determined by
the Administrator; provided, however, that the first Offering Period shall commence on the first
Trading Day on or after August 1, 2003. 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, except as provided in Section 23.

     4. Participation.

          (a) First Purchase Interval in the Offering Period. An Employee who is eligible to
participate in the Plan pursuant to Section 2 shall be entitled to participate in the first
Purchase Interval in the first Offering Period only if such individual submits to the Company’s
payroll office (or its designee), a properly completed subscription agreement authorizing payroll
deductions in the form provided by the Administrator for such purpose (i) no earlier than the
effective date of the

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Form S-8 registration statement with respect to the issuance of Common Stock
under this Plan and (ii) no later than five (5) business days from the effective date of such S-8
registration statement (the “Enrollment Window”). An eligible Employee’s failure to submit the
subscription agreement during the Enrollment Window shall result in the automatic termination of
such individual’s participation in the Offering Period.

          (b) Subsequent Purchase Intervals and Offering Periods. An Employee who is eligible to
participate in the Plan pursuant to Section 2 may become a participant by (i) submitting to the
Company’s payroll office (or its designee), on or before a date prescribed by the Administrator
prior to an applicable Enrollment Date or Semi-Annual Entry Date, a properly completed subscription
agreement authorizing payroll deductions in the form provided by the Administrator for such
purpose, or (ii) following an electronic or other enrollment procedure prescribed by the
Administrator.

     5. Payroll Deductions.

          (a) At the time a participant enrolls in the Plan pursuant to Section 4, he or she shall elect
to have payroll deductions made on each payday during the Offering Period in an amount not
exceeding ten percent (10%) of the Compensation which he or she receives on each such payday;
provided, that should a payday occur on a Purchase Date, a participant shall have the payroll
deductions made on such payday applied to his or her account under the new Offering Period or
Purchase Interval, as the case may be. A participant’s subscription agreement shall remain in
effect for successive Offering Periods unless terminated as provided in Section 9.

          (b) Payroll deductions authorized by a participant shall commence on the first payday
following the Entry Date 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 9;
provided, however, that for the first Offering Period, payroll deductions shall commence on the
first payday on or following the end of the Enrollment Window.

          (c) All payroll deductions made for a participant shall be credited to his or her account
under the Plan and shall be withheld in whole percentages only. A participant may not make any
additional payments into such account.

          (d) A participant may (i) discontinue his or her participation in the Plan as provided in
Section 9, (ii) increase the rate of his or her payroll deductions once during each Purchase
Interval, and (iii) decrease the rate of his or her payroll deductions once during each
Purchase Interval by (x) properly completing and submitting to the Company’s payroll office
(or its designee), on or before a date prescribed by the Administrator prior to an applicable
Purchase Date, a new subscription agreement authorizing the change in payroll deduction rate in the
form provided by the Administrator for such purpose, or (y) following an electronic or other
procedure prescribed by the Administrator. If a participant has not followed such procedures to
change the rate of payroll deductions, the rate of his or her payroll deductions shall continue at
the originally elected rate throughout the Offering Period and future Offering Periods (unless
terminated as provided in Section 9). The Administrator may, in its sole discretion, change or
institute any limit as to the nature and/or number of payroll deduction rate changes that may be
made by participants during any Offering Period. Any change in payroll deduction rate made
pursuant to this Section 5(d) shall be effective as of the first full payroll period following five
(5) business days after the date on which the change is made by the participant (unless the
Administrator, in its sole discretion, elects to process a given change in payroll deduction rate
more quickly).

          (e) Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of
the Code and Section 2(b), a participant’s payroll deductions may be decreased

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to zero percent (0%)
at any time during a Purchase Interval. Payroll deductions shall recommence at the rate originally
elected by the participant effective as of the beginning of the first Purchase Interval which is
scheduled to end in the following calendar year, unless terminated by the participant as provided
in Section 9.

          (f) At the time the purchase right is exercised, in whole or in part, or at the time some or
all of the Company’s 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,
that arise upon the exercise of the purchase right or the disposition of the Common Stock. At any
time, the Company may, but shall not be obligated to, withhold from the participant’s compensation
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 the sale or early disposition of Common Stock by the Employee.

     6. Grant of Purchase Right. On the Enrollment Date of each Offering Period, or the
Semi-Annual Entry Date of each Offering Period for each Employee who entered such Offering Period
on a Semi-Annual Entry Date, each Employee participating in such Offering Period shall be granted a
purchase right to purchase on each Purchase Date during 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 accumulated prior to such Purchase Date and retained in the participant’s
account as of the Purchase Date by the applicable Purchase Price; provided that in no event shall a
participant be permitted to purchase during each Purchase Interval more than 750 shares of Common
Stock (subject to any adjustment pursuant to Section 18), and provided further that such purchase
shall be subject to the limitations set forth in Sections 2(b) and 8. The Employee may accept the
grant of such purchase right by electing to participate in the Plan in accordance with the
requirements of Section 4. The Administrator may, for future Offering Periods, increase or
decrease, in its absolute discretion, the maximum number of shares of Common Stock that a
participant may purchase during each Purchase Interval of such Offering Period. Exercise of the
purchase right shall occur as provided in Section 7, unless the participant has withdrawn pursuant
to Section 9. The purchase right shall expire on the last day of the Offering Period.

     7. Exercise of Purchase Right.

          (a) Unless a participant withdraws from the Plan as provided in Section 9, his or her purchase
right for the purchase of shares of Common Stock shall be exercised automatically on the Purchase
Date, and the maximum number of full shares subject to purchase right shall be purchased for such
participant at the applicable Purchase Price with the accumulated payroll deductions in his or her
account. No fractional shares of Common Stock shall be purchased; any payroll deductions
accumulated in a participant’s account which are not sufficient to purchase a full share shall be
retained in the participant’s account for the subsequent Purchase Interval or Offering Period,
subject to earlier withdrawal by the participant as provided in Section 9. Any other funds left
over in a participant’s account after the Purchase Date shall be returned to the participant.
During a participant’s lifetime, a participant’s purchase right to purchase shares hereunder is
exercisable only by him or her.

          (b) Notwithstanding any contrary Plan provision, if the Administrator determines that, on a
given Purchase Date, the number of shares of Common Stock with respect to which purchase rights are
to be exercised may exceed (i) the number of shares of Common Stock that were available for sale
under the Plan on an Entry Date of the applicable Offering Period, or (ii) the number of shares of
Common Stock available for sale under the Plan on such Purchase Date, the Administrator may in its
sole discretion (x) provide that the Company shall make a pro rata

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allocation of the shares of
Common Stock available for purchase on such Entry Date or Purchase Date, as applicable, in as
uniform a manner as shall be practicable and as it shall determine in its sole discretion to be
equitable among all participants exercising purchase rights to purchase Common Stock on such
Purchase Date, and continue the Offering Period then in effect, or (y) provide that the Company
shall make a pro rata allocation of the shares of Common Stock available for purchase on such Entry
Date or Purchase Date, as applicable, in as uniform a manner as shall be practicable and as it
shall determine in its sole discretion to be equitable among all participants exercising purchase
rights to purchase Common Stock on such Purchase Date, and terminate the Offering Period then in
effect pursuant to Section 19. The Company may make pro rata allocation of the shares of Common
Stock available on the Entry Date of any applicable Offering Period pursuant to the preceding
sentence, notwithstanding any authorization of additional shares of Common Stock for issuance under
the Plan by the Company’s shareholders subsequent to such Entry Date.

     8. Delivery. As soon as administratively practicable after each Purchase Date on
which a purchase of shares of Common Stock occurs, the Company shall arrange the delivery to each
participant, the shares purchased upon exercise of his or her purchase right in a form determined
by the Administrator (in its sole discretion). No participant shall have any voting, dividend, or
other shareholder rights with respect to shares of Common Stock subject to any purchase right
granted under the Plan until such shares have been purchased and delivered to the participant as
provided in this Section 8.

     9. Withdrawal.

          (a) Under procedures established by the Administrator, a participant may withdraw all but not
less than all the payroll deductions credited to his or her account and not yet used to exercise
his or her purchase right under the Plan at any time by (i) submitting to the Company’s payroll
office (or its designee) a written notice of withdrawal in the form prescribed by
the Administrator for such purpose, or (ii) following an electronic or other withdrawal
procedure prescribed by the Administrator. All of the participant’s payroll deductions credited to
his or her account shall be paid to such participant as promptly as practicable after the effective
date of his or her withdrawal and such participant’s purchase right for the Offering Period shall
be automatically terminated, and no further payroll deductions for the purchase of shares shall be
made for the Purchase Interval then in progress and, unless the Employee again enrolls in the Plan
in accordance with Section 4, no further payroll deductions for the purchase of shares shall be
made for such Offering Period. If a participant withdraws from an Offering Period, payroll
deductions shall not resume at the beginning of any future Purchase Interval in that Offering
Period or in the succeeding Offering Period unless the Employee re-enrolls in the Plan in
accordance with the provisions of Section 4.

          (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 that may hereafter be adopted by the Company or
in succeeding Offering Periods that commence after the termination of the Offering Period from
which the participant withdraws.

     10. Termination of Employment. In the event a participant ceases to be an Employee of
an Employer, his or her purchase right shall immediately expire and any payroll deductions credited
to such participant’s account during the Offering Period but not yet used to purchase shares of
Common Stock under the Plan shall be returned to such participant or, in the case of his or her
death, to the person or persons entitled thereto under Section 14, and such participant’s purchase
right shall be automatically terminated.

     11. Interest. No interest shall accrue on the payroll deductions of a participant in
the Plan.

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     12. Stock.

          (a) Subject to adjustment upon changes in capitalization of the Company as provided in Section
18, the maximum number of shares of Common Stock which shall be made available for sale under the
Plan shall be 1,550,000 shares plus any shares which have been reserved but not issued under the
Company’s 1995 Employee Stock Purchase Plan as of the date of its termination.

          (b) Shares of Common Stock to be delivered to a participant under the Plan shall be registered
in the name of the participant or in the name of the participant and his or her spouse.

     13. Administration. The Administrator shall administer the Plan and shall have full
and exclusive discretionary authority to construe, interpret and apply the terms of the Plan, to
determine eligibility and to adjudicate all disputed claims filed under the Plan. Every finding,
decision and determination made by the Administrator shall, to the full extent permitted by law, be
final and binding upon all parties.

     14. Designation of Beneficiary.

          (a) A participant may designate a beneficiary who is to receive any shares of Common Stock and
cash, if any, from the participant’s account under the Plan in the event of such participant’s
death subsequent to an Purchase Date on which the purchase right is exercised but prior
to delivery to such participant of such shares and cash. In addition, a participant may
designate 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 the purchase right. 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) 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 no such executor or administrator has been appointed (to the knowledge of the Company), the
Company, in its discretion, may deliver such shares and/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.

          (c) All beneficiary designations under this Section 14 shall be made in such form and manner
as the Administrator may prescribe from time to time.

     15. Transferability. Neither payroll deductions credited to a participant’s account
nor any rights with regard to the exercise of a purchase right or to receive shares of Common Stock
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 14) 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 from an Offering
Period in accordance with Section 9.

     16. Use of Funds. All payroll deductions 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 payroll deductions. Until shares of Common Stock are issued under the Plan (as
evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company), a participant shall only have the rights of an unsecured creditor with
respect to such shares.

     17. Reports. Individual accounts shall be maintained for each participant in the Plan.
Statements of account shall be given to participating Employees at least annually, which
statements

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shall set forth the amounts of payroll deductions, the Purchase Price, the number of
shares of Common Stock purchased and the remaining cash balance, if any.

     18. Adjustments, Dissolution, Liquidation, Merger or Change of Control.

          (a) Adjustments. In the event that any dividend or other distribution (whether in the
form of cash, Common Stock, other securities, or other property), recapitalization, stock split,
reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination,
repurchase, or exchange of Common Stock or other securities of the Company, or other change in the
corporate structure of the Company affecting the Common Stock such that an adjustment is determined
by the Administrator (in its sole discretion) to be appropriate in order to prevent dilution or
enlargement of the benefits or potential benefits intended to be made available under the Plan,
then the Administrator shall, in such manner as it may deem equitable, adjust the number and class
of Common Stock which may be delivered under the Plan, the Purchase Price per share and the
number of shares of Common Stock covered by each purchase right under the Plan which has not yet
been exercised, and the numerical limits of Section 6.

          (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 Purchase Date (the “New Purchase Date”), and shall terminate immediately prior to the
consummation of such proposed dissolution or liquidation, unless provided otherwise by the Board.
The New Purchase Date shall be before the date of the Company’s proposed dissolution or
liquidation. The Board shall notify each participant in writing, at least ten (10) business days
prior to the New Purchase Date, that the Purchase Date for the participant’s purchase right has
been changed to the New Purchase Date and that the participant’s purchase right shall be exercised
automatically on the New Purchase Date, unless prior to such date the participant has withdrawn
from the Offering Period as provided in Section 9.

          (c) Merger or Change of Control. In the event of a merger of the Company with or into
another corporation or a Change of Control, each outstanding purchase right shall be assumed or an
equivalent purchase right 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 purchase right, the Purchase Interval then in progress shall be shortened by setting a new
Purchase Date (the “New Purchase Date”) and the Offering Period then in progress shall end on the
New Purchase Date. The New Purchase Date shall be before the date of the Company’s proposed merger
or Change of Control. The Administrator shall notify each participant in writing, at least ten (10)
business days prior to the New Purchase Date, that the Purchase Date for the participant’s purchase
right has been changed to the New Purchase Date and that the participant’s purchase right shall be
exercised automatically on the New Purchase Date, unless prior to such date the participant has
withdrawn from the Offering Period as provided in Section 9.

     19. Amendment or Termination.

          (a) The Administrator may at any time and for any reason terminate or amend the Plan. Except
as otherwise provided in the Plan, no such termination can affect purchase rights previously
granted under the Plan, provided that an Offering Period may be terminated by the Administrator on
any Purchase Date if the Administrator determines that the termination of the Plan is in the best
interests of the Company and its stockholders. Except as provided in Section 18 and this Section
19, no amendment may make any change in any purchase right theretofore granted which adversely
affects the rights of any participant. To the extent necessary to comply with Section 423 of the
Code (or any successor rule or provision or any other applicable law, regulation or stock

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exchange rule), the Company shall obtain stockholder approval in such a manner and to such a degree as
required.

          (b) Without stockholder consent and without regard to whether any participant 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 during an
Offering Period, establish the exchange ratio applicable to amounts withheld in a currency other
than U.S. dollars, permit payroll withholding 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 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 amounts withheld from the participant’s
Compensation, 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 Board 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 Offering Period ends on a new Purchase Date,
including an Offering Period underway at the time of the Board action; and

               (iii) allocating shares.

Such modifications or amendments shall not require stockholder approval or the consent of any Plan
participants.

     20. 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.

     21. Conditions Upon Issuance of Shares. Shares of Common Stock shall not be issued
with respect to a purchase right under the Plan unless the exercise of such purchase right 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,
including the rules and regulations promulgated thereunder, the Exchange Act and the requirements
of any stock exchange upon which the shares may then be listed, and shall be further subject to the
approval of counsel for the Company with respect to such compliance.

          As a condition to the exercise of a purchase right, the Company may require the person
exercising such purchase right 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.

     22. Term of Plan. The Plan shall become effective upon the earlier to occur of its
adoption by the Board or its approval by the stockholders of the Company. It shall continue in
effect until terminated pursuant to Section 19.

     23. Automatic Transfer to Low Price Offering Period. To the extent permitted by any
applicable laws, regulations, or stock exchange rules if the Fair Market Value of the Common Stock
on any Purchase Date in an Offering Period is lower than the Fair Market Value of the Common

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Stock on the Enrollment Date of such Offering Period, then all participants in such Offering
Period shall be automatically withdrawn from such Offering Period immediately after the exercise of
their purchase right on such Purchase Date and automatically re-enrolled in the immediately
following Offering Period and the current Offering Period shall automatically terminate after such
purchase of shares on the Purchase Date. The Administrator may shorten the duration of such new
Offering Period within five (5) business days following the start date of such new Offering Period.

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APPENDIX

     The following definitions shall be in effect under the Plan:

          Definitions.

          (a) “Administrator” means the Board or any committee thereof designated by the Board
in accordance with Section 13.

          (b) “Board” means the Board of Directors of the Company.

          (c) “Change of Control” means the occurrence of any of the following events:

               (i) Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act)
becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or
indirectly, of securities of the Company representing fifty percent (50%) or more of the total
voting power represented by the Company’s then outstanding voting securities; or

               (ii) The consummation of the sale or disposition by the Company of all or substantially all of
the Company’s assets; or

               (iii) The consummation of a merger or consolidation of the Company, with any other
corporation, other than a merger or consolidation which would result in the voting securities of
the Company outstanding immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving entity or its parent) at
least fifty percent (50%) of the total voting power represented by the voting securities of the
Company, or such surviving entity or its parent outstanding immediately after such merger or
consolidation.

               (iv) A change in the composition of the Board, as a result of which fewer than a majority of
the Directors are Incumbent Directors. “Incumbent Directors” means Directors who either (A) are
Directors as of the effective date of the Plan (pursuant to Section 22), or (B) are elected, or
nominated for election, to the Board with the affirmative votes of at least a majority of those
Directors whose election or nomination was not in connection with any transaction described in
subsections (i), (ii) or (iii) or in connection with an actual or threatened proxy contest relating
to the election of Directors of the Company.

          (d) “Code” means the Internal Revenue Code of 1986, as amended.

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

          (f) “Company” means Intevac, Inc., a California corporation.

          (g) “Compensation” means an Employee’s base straight time gross earnings, but
exclusive of payments for commissions, overtime, shift premium and other compensation.

          (h) “Designated Subsidiary” means any Subsidiary that has been designated by the
Administrator from time to time in its sole discretion as eligible to participate in the Plan.

          (i) “Director” means a member of the Board.

          (j) “Employee” means any individual who is a common law employee of an Employer and is
customarily employed for at least twenty (20) hours per week and more than five (5) months in any
calendar year by the Employer. 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. Where the period of leave exceeds 90 days and the individual’s right to
reemployment is not guaranteed either by statute or by contract, the employment relationship shall
be deemed to have terminated on the 91st day of such leave.

          (k) “Employer” means any one or all of the Company and its Designated Subsidiaries.

          (l) “Enrollment Date” means the first Trading Day of each Offering Period.

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          (m) “Entry Date” means the Enrollment Date or Semi-Annual Entry Date on which an
individual becomes a participant in the Plan.

          (n) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          (o) “Fair Market Value” means, 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 Nasdaq National Market or The Nasdaq SmallCap Market of
The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for the Common
Stock (or the closing bid, if no sales were reported) as quoted on such exchange or system on the
date of 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, its Fair Market Value shall be the mean of the closing bid and asked
prices for the Common Stock on the date of 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, its Fair Market Value
shall be determined in good faith by the Administrator.

          (p) “Offering Periods” means the successive periods of approximately twenty-four (24)
months, each comprised of one or more successive Purchase Intervals. The duration and timing of
Offering Periods may be changed pursuant to Section 3 of this Plan.

          (q) “Parent” means a “parent corporation,” whether now or hereafter existing, as
defined in Section 424(e) of the Code.

          (r) “Plan” means this 2003 Employee Stock Purchase Plan.

          (s) “Purchase Date” means the last Trading Day in January and July of each year. The
first Purchase Date under the Plan shall be January 30, 2004.

          (t) “Purchase Interval” shall mean the approximately six (6) month period running from
the first Trading Day in February of each year through the last Trading Day in July of each year or
from the first Trading Day in August of each year through the last Trading Day in January of the
following year. However, the initial Purchase Interval shall commence on the Enrollment Date of
the first Offering Period and end on the last Trading Day in January 2004.

          (u) “Purchase Price” means, for each participant, an amount equal to eighty-five
percent (85%) of the Fair Market Value of a share of Common Stock on (i) the Participant’s Entry
Date into that Offering Period, or (ii) on the Purchase Date, whichever is lower; provided however,
that the Purchase Price may be adjusted by the Administrator pursuant to Section 19.

          (v) “Semi-Annual Entry Date” means the first Trading Day of each Purchase Interval
provided that such Trading Day is not an Enrollment Date.

          (w) “Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing,
as defined in Section 424(f) of the Code.

          (x) “Trading Day” means a day on which the U.S. national stock exchanges and the
Nasdaq System are open for trading.

10exv10w3

Exhibit 10.3

INTEVAC, INC.

2004 EQUITY INCENTIVE PLAN

AS AMENDED, MARCH 2011

          1. Purposes of the Plan. The purposes of this Plan are:

	 	•	 	to attract and retain the best available personnel for positions of
substantial responsibility,
	 
	 	•	 	to provide additional incentive to Employees, Directors and Consultants, and
	 
	 	•	 	to promote the success of the Company’s business.

               The Plan permits the grant of Incentive Stock Options, Nonstatutory Stock Options, Restricted
Stock, Stock Appreciation Rights, Performance Units and Performance Shares.

          2. Definitions. As used herein, the following definitions will apply:

               (a) “Administrator” means the Board or any of its Committees as will be administering
the Plan, in accordance with Section 4 of the Plan.

               (b) “Affiliated SAR” means a SAR that is granted in connection with a related Option,
and which automatically will be deemed to be exercised at the same time that the related Option is
exercised.

               (c) “Applicable Laws” means 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 Awards are, or will be, granted under
the Plan.

               (d) “Award” means, individually or collectively, a grant under the Plan of Options,
SARs, Restricted Stock, Performance Units or Performance Shares.

               (e) “Award Agreement” means the written or electronic agreement setting forth the
terms and provisions applicable to each Award granted under the Plan. The Award Agreement is
subject to the terms and conditions of the Plan.

               (f) “Awarded Stock” means the Common Stock subject to an Award.

               (g) “Board” means the Board of Directors of the Company.

               (h) “Change in Control” means the occurrence of any of the following events:

 

 

               (i) Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act)
becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or
indirectly, of securities of the Company representing fifty percent (50%) or more of the total
voting power represented by the Company’s then outstanding voting securities; or

                    (i) The consummation of the sale or disposition by the Company of all or substantially all of
the Company’s assets;

                    (ii) A change in the composition of the Board occurring within a two-year period, as a result
of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors”
means directors who either (A) are Directors as of the effective date of the Plan, or (B) are
elected, or nominated for election, to the Board with the affirmative votes of at least a majority
of the Incumbent Directors at the time of such election or nomination (but will not include an
individual whose election or nomination is in connection with an actual or threatened proxy contest
relating to the election of directors to the Company); or

                    (iii) The consummation of a merger or consolidation of the Company with any other corporation,
other than a merger or consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by remaining outstanding or
by being converted into voting securities of the surviving entity or its parent) at least fifty
percent (50%) of the total voting power represented by the voting securities of the Company or such
surviving entity or its parent outstanding immediately after such merger or consolidation.

               (j) “Code” means the Internal Revenue Code of 1986, as amended. Any reference to a
section of the Code herein will be a reference to any successor or amended section of the Code.

               (k) “Committee” means a committee of Directors appointed by the Board in accordance
with Section 4 of the Plan.

               (l) “Common Stock” means the common stock of the Company, or in the case of
Performance Units, the cash equivalent thereof.

               (m) “Company” means Intevac, Inc., a California corporation, or any successor thereto.

               (n) “Consultant” means any natural person, including an advisor, engaged by the
Company or a Parent or Subsidiary to render services to such entity.

               (o) “Cost of Sales as a Percentage of Sales” means as to any Performance Period, the
Company’s cost of sales stated as a percentage of sales, determined in accordance with generally
accepted accounting principles.

               (p) “Director” means a member of the Board.

               (q) “Disability” means total and permanent disability as defined in Section 22(e)(3)
of the Code.

2

 

               (r) “Earnings Per Share” means as to any Performance Period, the Company’s Profit
After Tax, divided by a weighted average number of common shares outstanding and dilutive common
equivalent shares deemed outstanding, determined in accordance with generally accepted accounting
principles.

               (s) “Employee” means any person, including Officers and Directors, employed by the
Company or any Parent or Subsidiary of the Company. Neither service as a Director nor payment of a
director’s fee by the Company will be sufficient to constitute “employment” by the Company.

               (t) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

               (u) “Exchange Program” means a program under which (i) outstanding Awards are
surrendered or cancelled in exchange for Awards of the same type (which may have lower exercise
prices and different terms), Awards of a different type, and/or cash, and/or (ii) the exercise
price of an outstanding Award is reduced. The terms and conditions of any Exchange Program will be
determined by the Administrator in its sole discretion.

               (v) “Fair Market Value” means, 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 Nasdaq National Market or The Nasdaq SmallCap Market of
The Nasdaq Stock Market, its Fair Market Value will be the closing sales price for such stock (or
the closing bid, if no sales were reported) as quoted on such exchange or system on the day of
determination, as reported in The Wall Street Journal or such other source as the Administrator
deems reliable;

                    (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 will be the mean between
the high bid and low asked prices for the Common Stock on the day of 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 will
be determined in good faith by the Administrator.

               (w) “Fiscal Year” means the fiscal year of the Company.

               (x) “Free Cash Flow” means as to any Performance Period, the Company’s earnings before
interest, taxes, depreciation and amortization (EBITDA), determined in accordance with generally
accepted accounting principles.

               (y) “Freestanding SAR” means a SAR that is granted independently of any Option.

3

 

               (z) “Incentive Stock Option” means an Option intended to qualify as an incentive stock
option within the meaning of Section 422 of the Code and the regulations promulgated thereunder.

               (aa) “Inside Director” means a Director who is an Employee.

               (bb) “Marketing and Sales Expenses as a Percentage of Sales” means as to any
Performance Period, the Company’s marketing and sales expenses stated as a percentage of sales,
determined in accordance with generally accepted accounting principles.

               (cc) “Net Income as a Percentage of Sales” means as to any Performance Period, the
Company’s net income stated as a percentage of sales, determined in accordance with generally
accepted accounting principles.

               (dd) “Nonstatutory Stock Option” means an Option that by its terms does not qualify or
is not intended to qualify as an Incentive Stock Option.

               (ee) “Officer” means a person who is an officer of the Company within the meaning of
Section 16 of the Exchange Act and the rules and regulations promulgated thereunder.

               (ff) “Operating Margin” means as to any Performance Period, the Company’s net
operating income divided by Revenues, determined in accordance with generally accepted accounting
principles.

               (gg) “Option” means a stock option granted pursuant to the Plan.

               (hh) “Outside Director” means a Director who is not an Employee.

               (ii) “Parent” means a “parent corporation,” whether now or hereafter existing, as
defined in Section 424(e) of the Code.

               (jj) “Participant” means a Service Provider who holds an outstanding Award granted
under the Plan.

               (kk) “Performance Goals” means the goal(s) (or combined goal(s)) determined by the
Committee (in its discretion) to be applicable to a Participant with respect to an Award. As
determined by the Committee, the Performance Goals applicable to an Award may provide for a
targeted level or levels of achievement using one or more of the following measures: (a) Cost of
Sales as a Percentage of Sales, (b) Earnings Per Share, (c) Free Cash Flow, (d) Marketing and Sales
Expenses as a Percentage of Sales, (e) Net Income as a Percentage of Sales, (f) Operating Margin,
(g) Revenue, (h) Total Shareholder Return and (i) Working Capital. The Performance Goals may
differ from Participant to Participant and from Award to Award. Any criteria used may be measured,
as applicable, (i) in absolute terms, (ii) in relative terms (including, but not limited to,
passage of time and/or against another company or companies), (iii) on a per-share basis, (iv)
against the performance of the Company as a whole or a segment of the Company and/or (v) on a
pre-tax or after-tax basis. Prior to the latest possible date that will not jeopardize an Award’s
qualification as “performance-based compensation” under Section 162(m) of the Code, the Committee
shall

4

 

determine whether any element(s) or item(s) shall be included in or excluded from the
calculation of any Performance Goal with respect to any Participants.

               (ll) “Performance Period” means the time period of any Fiscal Year or such longer
period as determined by the Committee in its sole discretion during which the performance
objectives must be met.

               (mm) “Performance Share” means an Award granted to a Participant pursuant to Section
10.

               (nn) “Performance Unit” means an Award granted to a Participant pursuant to Section
10.

               (oo) “Period of Restriction” means the period during which the transfer of Shares of
Restricted Stock are subject to restrictions and therefore, the Shares are subject to a substantial
risk of forfeiture. Such restrictions may be based on the passage of time, the achievement of
target levels of performance, or the occurrence of other events as determined by the Administrator.

               (pp) “Plan” means this 2004 Equity Incentive Plan.

               (qq) “Profit After Tax” means as to any Performance Period, the Company’s income after
taxes, determined in accordance with generally accepted accounting principles.

               (rr) “Restricted Stock” means shares of Common Stock issued pursuant to a Restricted
Stock award under Section 8 of the Plan or issued pursuant to the early exercise of an Option.

               (ss) “Revenue” means as to any Performance Period, the Company’s net revenues
generated from third parties, determined in accordance with generally accepted accounting
principles.

               (tt) “Rule 16b-3” means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3,
as in effect when discretion is being exercised with respect to the Plan.

               (uu) “Section 16(b)” means Section 16(b) of the Exchange Act.

               (vv) “Service Provider” means an Employee, Director or Consultant.

               (ww) “Share” means a share of the Common Stock, as adjusted in accordance with Section
13 of the Plan.

               (xx) “Stock Appreciation Right” or “SAR” means an Award, granted alone or in
connection with an Option, that pursuant to Section 9 is designated as a SAR.

               (yy) “Subsidiary” means a “subsidiary corporation”, whether now or hereafter existing,
as defined in Section 424(f) of the Code.

5

 

               (zz) “Tandem SAR” means a SAR that is granted in connection with a related Option, the
exercise of which will require forfeiture of the right to purchase an equal number of Shares under
the related Option (and when a Share is purchased under the Option, the SAR will be canceled to the
same extent).

               (aaa) “Total Shareholder Return” means as to any Performance Period, the total return
(change in share price plus reinvestment of any dividends) of a Share.

               (bbb) “Unvested Awards” shall mean Options or Restricted Stock that (i) were granted
to an individual in connection with such individual’s position as an Employee and (ii) are still
subject to vesting or lapsing of Company repurchase rights or similar restrictions.

               (ccc) “Working Capital” means the Company’s current assets minus current liabilities,
determined in accordance with generally accepted accounting principles.

          3. Stock Subject to the Plan.

               (a) Stock Subject to the Plan. Subject to the provisions of Section 13 of the Plan,
the maximum aggregate number of Shares that may be optioned and sold under the Plan is 4,400,000
Shares plus (a) the number of shares which have been reserved but not issued under the Company’s
1995 Stock Option/Stock Issuance Plan (the “1995 Plan”) as of the effective date of the Plan, and
(b) any Shares returned to the 1995 Plan as a result of termination of options or repurchase of
Shares issued under such plan, with the maximum number of Shares to be added to the Plan pursuant
to clauses (a) and (b) equal to 1,500,000 Shares. The Shares may be authorized, but unissued, or
reacquired Common Stock. Shares shall not be deemed to have been issued pursuant to the Plan with
respect to any portion of an Award that is settled in cash. Upon payment in Shares pursuant to the
exercise of an SAR, the number of Shares available for issuance under the Plan shall be reduced
only by the number of Shares actually issued in such payment. If the exercise price of an Option
is paid by tender to the Company, or attestation to the ownership, of Shares owned by the
Participant, the number of Shares available for issuance under the Plan shall be reduced by the
gross number of Shares for which the Option is exercised. Notwithstanding anything to the contrary
herein, the total number of Shares subject to Awards other than Options or SARs that were granted
at per Share exercise prices equal to 100% of Fair Market Value per Share on the grant date may not
exceed 20% of the Shares reserved for issuance under the Plan.

               (b) Lapsed Awards. If an Award expires or becomes unexercisable without having been
exercised in full, or is surrendered pursuant to an Exchange Program, or, with respect to Options,
Restricted Stock, Performance Shares or Performance Units, is forfeited back to or repurchased by
the Company, the unpurchased Shares (or for Awards other than Options and SARs, the forfeited or
repurchased Shares) which were subject thereto shall become available for future grant or sale
under the Plan (unless the Plan has terminated). With respect to SARs, only Shares actually issued
pursuant to an SAR shall cease to be available under the Plan; all remaining Shares under SARs
shall remain available for future grant or sale under the Plan (unless the Plan has terminated).
However, Shares that have actually been issued under the Plan under any Award shall not be returned
to the Plan and shall not become available for future distribution under the Plan, except that if
unvested Shares of Restricted Stock, Performance Shares or Performance Units are repurchased by the
Company or are forfeited to the Company, such Shares shall become available

6

 

for future grant under the Plan. To the extent an Award under the Plan is paid out
in cash rather than stock, such cash payment shall not result in reducing the number of Shares
available for issuance under the Plan.

          4. Administration of the Plan.

               (a) Procedure.

                    (i) Multiple Administrative Bodies. Different Committees with respect to different
groups of Service Providers may administer the Plan.

                    (ii) Section 162(m). To the extent that the Administrator determines it to be
desirable to qualify Options granted hereunder as “performance-based compensation” within the
meaning of Section 162(m) of the Code, the Plan will be administered by a Committee of two or more
“outside directors” within the meaning of Section 162(m) of the Code.

                    (iii) Rule 16b-3. To the extent desirable to qualify transactions hereunder as exempt
under Rule 16b-3, the transactions contemplated hereunder will be structured to satisfy the
requirements for exemption under Rule 16b-3.

                    (iv) Other Administration. Other than as provided above, the Plan will be
administered by (A) the Board or (B) a Committee, which committee will be constituted to satisfy
Applicable Laws.

               (b) Powers of the Administrator. Subject to the provisions of the Plan, and in the
case of a Committee, subject to the specific duties delegated by the Board to such Committee, the
Administrator will have the authority, in its discretion:

                    (i) to determine the Fair Market Value;

                    (ii) to select the Service Providers to whom Awards may be granted hereunder;

                    (iii) to determine the number of Shares to be covered by each Award granted hereunder;

                    (iv) to approve forms of agreement for use under the Plan;

                    (v) to determine the terms and conditions, not inconsistent with the terms of the Plan, of any
Award granted hereunder. Such terms and conditions include, but are not limited to, the exercise
price, the time or times when Awards may be exercised (which may be based on performance criteria),
any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation
regarding any Award or the Shares relating thereto, based in each case on such factors as the
Administrator will determine;

                    (vi) to institute an Exchange Program;

7

 

                    (vii) to construe and interpret the terms of the Plan and Awards granted pursuant to the Plan;

                    (viii) to prescribe, amend and rescind rules and regulations relating to the Plan, including
rules and regulations relating to sub-plans established for the purpose of satisfying applicable
foreign laws and/or qualifying for preferred tax treatment under applicable foreign laws;

                    (ix) to modify or amend each Award (subject to Section 17(c) of the Plan), including the
discretionary authority to extend the post-termination exercisability period of Awards longer than
is otherwise provided for in the Plan;

                    (x) to allow Participants to satisfy withholding tax obligations by electing to have the
Company withhold from the Shares or cash to be issued upon exercise or vesting of an Award that
number of Shares or cash having a Fair Market Value equal to the minimum amount required to be
withheld. The Fair Market Value of any Shares to be withheld will be determined on the date that
the amount of tax to be withheld is to be determined. All elections by a Participant to have
Shares or cash withheld for this purpose will be made in such form and under such conditions as the
Administrator may deem necessary or advisable;

                    (xi) to authorize any person to execute on behalf of the Company any instrument required to
effect the grant of an Award previously granted by the Administrator;

                    (xii) to allow a Participant to defer the receipt of the payment of cash or the delivery of
Shares that would otherwise be due to such Participant under an Award;

                    (xiii) to make all other determinations deemed necessary or advisable for administering the
Plan.

               (c) Exchange Program. Notwithstanding anything in this Plan to the contrary, the
Administrator shall not have the authority to institute an Exchange Program without the consent of
the shareholders.

               (d) Effect of Administrator’s Decision. The Administrator’s decisions, determinations
and interpretations will be final and binding on all Participants and any other holders of Awards.

          5. Eligibility. Nonstatutory Stock Options, Restricted Stock, Stock Appreciation
Rights, Performance Units and Performance Shares may be granted to Service Providers. Incentive
Stock Options may be granted only to Employees.

          6. Limitations.

               (a) Each Option will be designated in the Award Agreement as either an Incentive Stock Option
or a Nonstatutory Stock Option. However, notwithstanding such designation, to the extent that the
aggregate Fair Market Value of the Shares with respect to which Incentive Stock Options are
exercisable for the first time by the Participant during any calendar year (under all plans of the
Company and any Parent or Subsidiary) exceeds $100,000, such Options will be treated as
Nonstatutory Stock Options. For purposes of this Section 6(a), Incentive Stock Options will be
taken

8

 

into account in the order in which they were granted. The Fair Market Value of the Shares will
be determined as of the time the Option with respect to such Shares is granted.

               (b) The following limitations will apply to grants of Options and Stock Appreciation Rights
with an exercise price equal to or exceeding 100% of Fair Market Value on the grant date:

                    (i) No Service Provider will be granted, in any Fiscal Year, Options or SARs to purchase more
than 200,000 Shares.

                    (ii) In connection with his or her initial service, a Service Provider may be granted Options
or SARs to purchase up to an additional 300,000 Shares, which will not count against the limit set
forth in Section 6(b)(i) above.

                    (iii) The foregoing limitations will be adjusted proportionately in connection with any change
in the Company’s capitalization as described in Section 13.

                    (iv) If an Option or SAR is cancelled in the same Fiscal Year in which it was granted (other
than in connection with a transaction described in Section 13), the cancelled Option or SAR will be
counted against the limits set forth in subsections (i) and (ii) above. For this purpose, if the
exercise price of an Option is reduced, the transaction will be treated as a cancellation of the
Option and the grant of a new Option.

          7. Stock Options.

               (a) Term of Option. The term of each Option will be stated in the Award Agreement. In
the case of an Incentive Stock Option, the term will be ten (10) years from the date of grant or
such shorter term as may be provided in the Award Agreement. Moreover, in the case of an Incentive
Stock Option granted to a Participant who, at the time the Incentive Stock Option is granted, owns
stock representing more than ten percent (10%) of the total combined voting power of all classes of
stock of the Company or any Parent or Subsidiary, the term of the Incentive Stock Option will be
five (5) years from the date of grant or such shorter term as may be provided in the Award
Agreement.

               (b) Option Exercise Price and Consideration.

                    (i) Exercise Price. The per share exercise price for the Shares to be issued pursuant
to exercise of an Option will be determined by the Administrator, subject to the following:

                         (1) In the case of an Incentive Stock Option

                              a) granted to an Employee who, at the time the Incentive Stock Option is granted, owns stock
representing more than ten percent (10%) of the voting power of all classes of stock of the Company
or any Parent or Subsidiary, the per Share exercise price will be no less than 110% of the Fair
Market Value per Share on the date of grant.

9

 

                              b) granted to any Employee other than an Employee described in paragraph (a) immediately
above, the per Share exercise price will be no less than 100% of the Fair Market Value per Share on
the date of grant.

                         (2) In the case of a Nonstatutory Stock Option, the per Share exercise price will be
determined by the Administrator. In the case of a Nonstatutory Stock Option intended to qualify as
“performance-based compensation” within the meaning of Section 162(m) of the Code, the per Share
exercise price will be no less than 100% of the Fair Market Value per Share on the date of grant.

                         (3) Notwithstanding the foregoing, Incentive Stock Options may be granted with a per Share
exercise price of less than 100% of the Fair Market Value per Share on the date of grant pursuant
to a merger or other corporate transaction.

                    (ii) Waiting Period and Exercise Dates. At the time an Option is granted, the
Administrator will fix the period within which the Option may be exercised and will determine any
conditions that must be satisfied before the Option may be exercised.

                    (iii) Form of Consideration. The Administrator will determine the acceptable form of
consideration for exercising an Option, including the method of payment. In the case of an
Incentive Stock Option, the Administrator will determine the acceptable form of consideration at
the time of grant. Such consideration may consist entirely of: (1) cash; (2) check; (3) promissory
note; (4) other Shares, provided Shares acquired directly or indirectly from the Company, (A) have
been owned by the Participant and not subject to substantial risk of forfeiture for more than six
months on the date of surrender, and (B) have a Fair Market Value on the date of surrender equal to
the aggregate exercise price of the Shares as to which said Option will be exercised; (5)
consideration received by the Company under a cashless exercise program implemented by the Company
in connection with the Plan; (6) a reduction in the amount of any Company liability to the
Participant, including any liability attributable to the Participant’s participation in any
Company-sponsored deferred compensation program or arrangement; (7) any combination of the
foregoing methods of payment; or (8) such other consideration and method of payment for the
issuance of Shares to the extent permitted by Applicable Laws.

               (c) Exercise of Option.

                    (i) Procedure for Exercise; Rights as a Stockholder. Any Option granted hereunder
will be exercisable according to the terms of the Plan and at such times and under such conditions
as determined by the Administrator and set forth in the Award Agreement. An Option may not be
exercised for a fraction of a Share.

                         An Option will be deemed exercised when the Company receives: (x) written or electronic notice
of exercise (in accordance with the Award Agreement) from the person entitled to exercise the
Option, and (y) full payment for the Shares with respect to which the Option is exercised. Full
payment may consist of any consideration and method of payment authorized by the Administrator and
permitted by the Award Agreement and the Plan. Shares issued upon exercise of an Option will be
issued in the name of the Participant or, if requested by the Participant, in the name of the
Participant and his or her spouse. Until the Shares are issued (as

10

 

evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer agent of the
Company), no right to vote or receive dividends or any other rights as a stockholder will exist
with respect to the Awarded Stock, notwithstanding the exercise of the Option. The Company will
issue (or cause to be issued) such Shares promptly after the Option is exercised. No adjustment
will be made for a dividend or other right for which the record date is prior to the date the
Shares are issued, except as provided in Section 13 of the Plan.

                         Exercising an Option in any manner will decrease the number of Shares thereafter available,
both for purposes of the Plan and for sale under the Option, by the number of Shares as to which
the Option is exercised.

               (d) Termination of Relationship as a Service Provider. If a Participant ceases to be
a Service Provider, other than upon the Participant’s death or Disability, the Participant may
exercise his or her Option within such period of time as is specified in the Award Agreement to the
extent that the Option is vested on the date of termination (but in no event later than the
expiration of the term of such Option as set forth in the Award Agreement). In the absence of a
specified time in the Award Agreement, the Option will remain exercisable for three (3) months
following the Participant’s termination. Unless otherwise provided by the Administrator, if on the
date of termination the Participant is not vested as to his or her entire Option, the Shares
covered by the unvested portion of the Option will revert to the Plan. If after termination the
Participant does not exercise his or her Option within the time specified by the Administrator, the
Option will terminate, and the Shares covered by such Option will revert to the Plan.

               (e) Disability of Participant. If a Participant ceases to be a Service Provider as a
result of the Participant’s Disability, the Participant may exercise his or her Option within such
period of time as is specified in the Award Agreement to the extent the Option is vested on the
date of termination (but in no event later than the expiration of the term of such Option as set
forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the
Option will remain exercisable for twelve (12) months following the Participant’s termination.
Unless otherwise provided by the Administrator, if on the date of termination the Participant is
not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option
will revert to the Plan. If after termination the Participant does not exercise his or her Option
within the time specified herein, the Option will terminate, and the Shares covered by such Option
will revert to the Plan.

               (f) Death of Participant. If a Participant dies while a Service Provider, the Option
may be exercised following the Participant’s death within such period of time as is specified in
the Award Agreement to the extent that the Option is vested on the date of death (but in no event
may the option be exercised later than the expiration of the term of such Option as set forth in
the Award Agreement), by the Participant’s designated beneficiary, provided such beneficiary has
been designated prior to Participant’s death in a form acceptable to the Administrator. If no such
beneficiary has been designated by the Participant, then such Option may be exercised by the
personal representative of the Participant’s estate or by the person(s) to whom the Option is
transferred pursuant to the Participant’s will or in accordance with the laws of descent and
distribution. In the absence of a specified time in the Award Agreement, the Option will remain
exercisable for twelve (12) months following Participant’s death. Unless otherwise provided by the
Administrator, if at the time of death Participant is not vested as to his or her entire Option,
the Shares covered by the unvested portion of the Option will immediately revert to the Plan. If
the

11

 

Option is not so exercised within the time specified herein, the Option will terminate, and
the Shares covered by such Option will revert to the Plan.

               (g) Buyout Provisions. The Administrator may at any time offer to buy out for a
payment in cash or Shares an Option previously granted based on such terms and conditions as the
Administrator shall establish and communicate to the Participant at the time that such offer is
made.

          8. Restricted Stock.

               (a) Grant of Restricted Stock. Subject to the terms and provisions of the Plan, the
Administrator, at any time and from time to time, may grant Shares of Restricted Stock to Service
Providers in such amounts as the Administrator, in its sole discretion, will determine provided
that during any Fiscal Year, no Service Provider shall receive more than 125,000 Shares of
Restricted Stock except that such Service Provider may receive up to an additional 175,000 Shares
of Restricted Stock in the fiscal year of the Company in which his or her service as a Service
Provider first commences.

               (b) Restricted Stock Agreement. Each Award of Restricted Stock will be evidenced by an
Award Agreement that will specify the Period of Restriction, the number of Shares granted, and such
other terms and conditions as the Administrator, in its sole discretion, will determine. Unless
the Administrator determines otherwise, Shares of Restricted Stock will be held by the Company as
escrow agent until the restrictions on such Shares have lapsed.

               (c) Transferability. Except as provided in this Section 8, Shares of Restricted Stock
may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until the
end of the applicable Period of Restriction.

               (d) Other Restrictions. The Administrator, in its sole discretion, may impose such
other restrictions on Shares of Restricted Stock as it may deem advisable or appropriate.

                    (i) General Restrictions. The Administrator may set restrictions based upon the
achievement of specific performance objectives (Company-wide, departmental, or individual),
applicable federal or state securities laws, or any other basis determined by the Committee in its
discretion.

                    (ii) Section 162(m) Performance Restrictions. For purposes of qualifying grants of
Restricted Stock as “performance-based compensation” under Section 162(m) of the Code, the
Committee, in its discretion, may set restrictions based upon the achievement of Performance Goals.
The Performance Goals shall be set by the Committee on or before the latest date permissible to
enable the Restricted Stock to qualify as “performance-based compensation” under Section 162(m) of
the Code. In granting Restricted Stock which is intended to qualify under Section 162(m) of the
Code, the Committee shall follow any procedures determined by it from time to time to be necessary
or appropriate to ensure qualification of the Restricted Stock under Section 162(m) of the Code
(e.g., in determining the Performance Goals).

               (e) Removal of Restrictions. Except as otherwise provided in this Section 8, Shares of
Restricted Stock covered by each Restricted Stock grant made under the Plan will be released from
escrow as soon as practicable after the last day of the Period of Restriction. The

12

 

Administrator, in its discretion, may accelerate the time at which any restrictions will lapse
or be removed.

               (f) Voting Rights. During the Period of Restriction, Service Providers holding Shares
of Restricted Stock granted hereunder may exercise full voting rights with respect to those Shares,
unless the Administrator determines otherwise.

               (g) Dividends and Other Distributions. During the Period of Restriction, Service
Providers holding Shares of Restricted Stock will be entitled to receive all dividends and other
distributions paid with respect to such Shares unless otherwise provided in the Award Agreement.
If any such dividends or distributions are paid in Shares, the Shares will be subject to the same
restrictions on transferability and forfeitability as the Shares of Restricted Stock with respect
to which they were paid.

               (h) Return of Restricted Stock to Company. On the date set forth in the Award
Agreement, the Restricted Stock for which restrictions have not lapsed will revert to the Company
and again will become available for grant under the Plan.

          9. Stock Appreciation Rights.

               (a) Grant of SARs. Subject to the terms and conditions of the Plan, a SAR may be
granted to Service Providers at any time and from time to time as will be determined by the
Administrator, in its sole discretion. The Administrator may grant Affiliated SARs, Freestanding
SARs, Tandem SARs, or any combination thereof.

               (b) Number of Shares. The Administrator will have complete discretion to determine the
number of SARs granted to any Service Provider, subject to the limits set forth in Section 6.

               (c) Exercise Price and Other Terms. The Administrator, subject to the provisions of
the Plan, will have complete discretion to determine the terms and conditions of SARs granted under
the Plan; provided, however, that no SAR may have a term of more than ten (10) years from the date
of grant. However, the exercise price of Tandem or Affiliated SARs will equal the exercise price of
the related Option.

               (d) Exercise of Tandem SARs. Tandem SARs may be exercised for all or part of the
Shares subject to the related Option upon the surrender of the right to exercise the equivalent
portion of the related Option. A Tandem SAR may be exercised only with respect to the Shares for
which its related Option is then exercisable. With respect to a Tandem SAR granted in connection
with an Incentive Stock Option: (a) the Tandem SAR will expire no later than the expiration of the
underlying Incentive Stock Option; (b) the value of the payout with respect to the Tandem SAR will
be for no more than one hundred percent (100%) of the difference between the exercise price of the
underlying Incentive Stock Option and the Fair Market Value of the Shares subject to the underlying
Incentive Stock Option at the time the Tandem SAR is exercised; and (c) the Tandem SAR will be
exercisable only when the Fair Market Value of the Shares subject to the Incentive Stock Option
exceeds the Exercise Price of the Incentive Stock Option.

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               (e) Exercise of Affiliated SARs. An Affiliated SAR will be deemed to be exercised upon
the exercise of the related Option. The deemed exercise of an Affiliated SAR will not necessitate a
reduction in the number of Shares subject to the related Option.

               (f) Exercise of Freestanding SARs. Freestanding SARs will be exercisable on such terms
and conditions as the Administrator, in its sole discretion, will determine.

               (g) SAR Agreement. Each SAR grant will be evidenced by an Award Agreement that will
specify the exercise price, the term of the SAR, the conditions of exercise, and such other terms
and conditions as the Administrator, in its sole discretion, will determine.

               (h) Expiration of SARs. An SAR granted under the Plan will expire upon the date
determined by the Administrator, in its sole discretion, and set forth in the Award Agreement.
Notwithstanding the foregoing, the rules of Sections 7(d), 7(e) and 7(f) also will apply to SARs.

               (i) Payment of SAR Amount. Upon exercise of an SAR, a Participant will be entitled to
receive payment from the Company in an amount determined by multiplying:

                    (i) The difference between the Fair Market Value of a Share on the date of exercise over the
exercise price; times

                    (ii) The number of Shares with respect to which the SAR is exercised.

     At the discretion of the Administrator, the payment upon SAR exercise may be in cash, in
Shares of equivalent value, or in some combination thereof.

               (j) Buyout Provisions. The Administrator may at any time offer to buy out for a
payment in cash or Shares a Stock Appreciation Right previously granted based on such terms and
conditions as the Administrator shall establish and communicate to the Participant at the time that
such offer is made.

          10. Performance Units and Performance Shares.

               (a) Grant of Performance Units/Shares. Subject to the terms and conditions of the
Plan, Performance Units and Performance Shares may be granted to Service Providers at any time and
from time to time, as will be determined by the Administrator, in its sole discretion. The
Administrator will have complete discretion in determining the number of Performance Units and
Performance Shares granted to each Service Provider, provided that during any Fiscal Year, (a) no
Service Provider shall receive Performance Units having an initial value greater than $750,000,
except that such Service Provider may receive additional Performance Units in the fiscal year of
the Company in which his or her service as an Employee first commences with an initial value no
greater than $750,000, and (b) no Service Provider shall receive more than 125,000 Performance
Shares, except that such Service Provider may receive up to an additional 175,000 Performance
Shares in the fiscal year of the Company in which his or her service as a Service Provider first
commences. The Administrator will have complete discretion in determining the conditions that must
be satisfied.

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               (b) Value of Performance Units/Shares. Each Performance Unit will have an initial
value that is established by the Administrator on or before the date of grant. Each Performance
Share will have an initial value equal to the Fair Market Value of a Share on the date of grant.

               (c) Performance Objectives and Other Terms. The Administrator will set performance
objectives in its discretion which, depending on the extent to which they are met, will determine
the number or value of Performance Units/Shares that will be paid out to the Service Providers.
Each Award of Performance Units/Shares will be evidenced by an Award Agreement that will specify
the Performance Period, and such other terms and conditions as the Administrator, in its sole
discretion, will determine. The Administrator may set performance objectives based upon the
achievement of Company-wide, divisional, or individual goals, applicable federal or state
securities laws, or any other basis determined by the Administrator in its discretion.

               (d) Section 162(m) Performance Objectives. For purposes of qualifying grants of
Performance Units and/or Performance Shares as “performance-based compensation” under Section
162(m) of the Code, the Committee, in its discretion, may determine that the performance objectives
applicable to Performance Units and/or Performance Shares shall be based on the achievement of
Performance Goals. The Performance Goals shall be set by the Committee on or before the latest
date permissible to enable the Performance Units and/or Performance Shares to qualify as
“performance-based compensation” under Section 162(m) of the Code. In granting Performance Units
and/or Performance Shares which are intended to qualify under Section 162(m) of the Code, the
Committee shall follow any procedures determined by it from time to time to be necessary or
appropriate to ensure qualification of the Performance Units and/or Performance Shares under
Section 162(m) of the Code (e.g., in determining the Performance Goals).

               (e) Earning of Performance Units/Shares. After the applicable Performance Period has
ended, the holder of Performance Units/Shares will be entitled to receive a payout of the number of
Performance Units/Shares earned by the Participant over the Performance Period, to be determined as
a function of the extent to which the corresponding performance objectives have been achieved.
After the grant of a Performance Unit/Share, the Administrator, in its sole discretion, may reduce
or waive any performance objectives for such Performance Unit/Share.

               (f) Form
and Timing of Payment of Performance Units/Shares. Payment of earned
Performance Units/Shares will be made as soon as practicable after the expiration of the applicable
Performance Period. The Administrator, in its sole discretion, may pay earned Performance
Units/Shares in the form of cash, in Shares (which have an aggregate Fair Market Value equal to the
value of the earned Performance Units/Shares at the close of the applicable Performance Period) or
in a combination thereof.

               (g) Cancellation of Performance Units/Shares. On the date set forth in the Award
Agreement, all unearned or unvested Performance Units/Shares will be forfeited to the Company, and
again will be available for grant under the Plan.

     11. Leaves of Absence. Unless the Administrator provides otherwise, vesting of
Awards granted hereunder will be suspended during any unpaid leave of absence, such that vesting
shall cease on the first day of any unpaid leave of absence and shall only recommence

15

 

upon return to active service. A Service Provider will not cease to be an Employee in the
case of (i) any leave of absence approved by the Company or (ii) transfers between locations of
the Company or between the Company, its Parent, or any Subsidiary. For purposes of Incentive
Stock Options, no such leave may exceed ninety (90) days, unless reemployment upon expiration of
such leave is guaranteed by statute or contract. If reemployment upon expiration of a leave of
absence approved by the Company is not so guaranteed, then three months following the 91st day
of such leave any Incentive Stock Option held by the Participant will cease to be treated as an
Incentive Stock Option and will be treated for tax purposes as a Nonstatutory Stock Option.

     12. Transferability of Awards. Unless determined otherwise by the Administrator, an
Award may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any
manner other than by will or by the laws of descent or distribution and may be exercised, during
the lifetime of the Participant, only by the Participant. If the Administrator makes an Award
transferable, such Award will contain such additional terms and conditions as the Administrator
deems appropriate.

     13. Adjustments; Dissolution or Liquidation; or Change in Control.

               (a) Adjustments. Subject to any required action by the shareholders of the Company,
the number of Shares covered by each outstanding Award, the number of Shares which have been
authorized for issuance under the Plan but as to which no Awards have yet been granted or which
have been returned to the Plan upon cancellation or expiration of an Award and the number of Shares
as well as the price per share of Common Stock covered by each such outstanding Award and the
162(m) annual share issuance limits under Section 3, 6, 8(a), 9(b) and 10(a) shall be
proportionately adjusted for any increase or decrease in the number of issued Shares resulting from
a stock split, reverse stock split, stock dividend, combination or reclassification of the Common
Stock, or any other increase or decrease in the number of issued Shares 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 Board, 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 subject
to an Award.

               (b) Dissolution or Liquidation. In the event of the proposed dissolution or
liquidation of the Company, the Administrator will notify each Participant as soon as practicable
prior to the effective date of such proposed transaction. The Administrator in its discretion may
provide for a Participant to have the right to exercise his or her Option or SAR until ten (10)
days prior to such transaction as to all of the Awarded Stock covered thereby, including Shares as
to which the Award would not otherwise be exercisable. In addition, the Administrator may provide
that any Company repurchase option or forfeiture rights applicable to any Award shall lapse 100%,
and that any Award vesting shall accelerate 100%, provided the proposed dissolution or liquidation
takes place at the time and in the manner contemplated. To the extent it has not been previously
exercised (with respect to Options and SARs) or vested (with respect to other Awards), an Award
will terminate immediately prior to the consummation of such proposed action.

16

 

               (c) Change in Control.

                    (i) Stock Options and SARS. In the event of a Change in Control, each outstanding
Option and SAR shall be assumed or an equivalent option or SAR 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 or SAR, the Participant shall
fully vest in and have the right to exercise the Option or SAR as to all of the Awarded Stock,
including Shares as to which it would not otherwise be vested or exercisable. If an Option or SAR
becomes fully vested and exercisable in lieu of assumption or substitution in the event of a Change
in Control, the Administrator shall notify the Participant in writing or electronically that the
Option or SAR shall be fully vested and exercisable for a period of fifteen (15) days from the date
of such notice, and the Option or SAR shall terminate upon the expiration of such period. For the
purposes of this paragraph, the Option or SAR shall be considered assumed if, following the Change
in Control, the option or stock appreciation right confers the right to purchase or receive, for
each Share of Awarded Stock subject to the Option or SAR immediately prior to Change in Control,
the consideration (whether stock, cash, or other securities or property) received in the Change in
Control by holders of Common Stock for each Share held on the effective date of the transaction
(and if holders were offered a choice of consideration, the type of consideration chosen by the
holders of a majority of the outstanding Shares); provided, however, that if such consideration
received in the Change in Control is not solely common stock of the successor corporation or its
Parent, the Administrator may, with the consent of the successor corporation, provide for the
consideration to be received upon the exercise of the Option or SAR, for each Share of Awarded
Stock subject to the Option or SAR, to be solely common stock of the successor corporation or its
Parent equal in fair market value to the per share consideration received by holders of Common
Stock in the Change in Control. Notwithstanding anything herein to the contrary, an Award that
vests, is earned or paid-out upon the satisfaction of one or more performance goals will not be
considered assumed if the Company or its successor modifies any of such performance goals without
the Participant’s consent; provided, however, a modification to such performance goals only to
reflect the successor corporation’s post-Change in Control corporate structure will not be deemed
to invalidate an otherwise valid Award assumption.

                    (ii) Restricted Stock, Performance Shares and Performance Units. In the event of a
Change in Control, each outstanding Restricted Stock, Performance Share and Performance Unit award
shall be assumed or an equivalent Restricted Stock, Performance Share and Performance Unit award
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 Restricted Stock,
Performance Share or Performance Unit award, the Participant shall fully vest in the Restricted
Stock, Performance Share or Performance Unit including as to Shares (or with respect to Performance
Units, the cash equivalent thereof) which would not otherwise be vested. For the purposes of this
paragraph, a Restricted Stock, Performance Share and Performance Unit award shall be considered
assumed if, following the Change in Control, the award confers the right to purchase or receive,
for each Share (or with respect to Performance Units, the cash equivalent thereof) subject to the
Award immediately prior to the Change in Control, the consideration (whether stock, cash, or other
securities or property) received in the Change in Control by holders of Common Stock for each Share
held on the effective date of the transaction (and if holders were offered a choice of
consideration, the type of consideration chosen by the holders of a majority of the outstanding
Shares); provided, however, that if such consideration received in the Change in Control

17

 

is not solely common stock of the successor corporation or its Parent, the Administrator may,
with the consent of the successor corporation, provide for the consideration to be received, for
each Share and each unit/right to acquire a Share subject to the Award, to be solely common stock
of the successor corporation or its Parent equal in fair market value to the per share
consideration received by holders of Common Stock in the Change in Control. Notwithstanding
anything herein to the contrary, an Award that vests, is earned or paid-out upon the satisfaction
of one or more performance goals will not be considered assumed if the Company or its successor
modifies any of such performance goals without the Participant’s consent; provided, however, a
modification to such performance goals only to reflect the successor corporation’s post-Change in
Control corporate structure will not be deemed to invalidate an otherwise valid Award assumption.

     14. No Effect on Employment or Service. Neither the Plan nor any Award will confer
upon a Participant any right with respect to continuing the Participant’s relationship as a
Service Provider with the Company, nor will they interfere in any way with the Participant’s
right or the Company’s right to terminate such relationship at any time, with or without cause,
to the extent permitted by Applicable Laws.

     15. Date of Grant. The date of grant of an Award will be, for all purposes, the
date on which the Administrator makes the determination granting such Award, or such other later
date as is determined by the Administrator. Notice of the determination will be provided to each
Participant within a reasonable time after the date of such grant.

     16. Term of Plan. Subject to Section 20 of the Plan, the Plan will become effective
upon its adoption by the Board. It will continue in effect for a term of ten (10) years unless
terminated earlier under Section 17 of the Plan.

     17. Amendment and Termination of the Plan.

               (a) Amendment and Termination. The Board may at any time amend, alter, suspend or
terminate the Plan.

               (b) Stockholder Approval. The Company will obtain stockholder approval of any Plan
amendment to the extent necessary and desirable to comply with Applicable Laws.

               (c) Effect of Amendment or Termination. No amendment, alteration, suspension or
termination of the Plan will impair the rights of any Participant, unless mutually agreed otherwise
between the Participant and the Administrator, which agreement must be in writing and signed by the
Participant and the Company. Termination of the Plan will not affect the Administrator’s ability
to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior
to the date of such termination.

          18. Conditions Upon Issuance of Shares.

               (a) Legal Compliance. Shares will not be issued pursuant to the exercise of an Award
unless the exercise of such Award and the issuance and delivery of such Shares will comply with
Applicable Laws and will be further subject to the approval of counsel for the Company with respect
to such compliance.

18

 

               (b) Investment Representations. As a condition to the exercise of an Award, the
Company may require the person exercising such Award to represent and warrant at the time of any
such exercise that the Shares are being purchased only for investment and without any present
intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a
representation is required.

     19. Inability to Obtain Authority. The inability of the Company to obtain authority
from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel
to be necessary to the lawful issuance and sale of any Shares hereunder, will relieve the
Company of any liability in respect of the failure to issue or sell such Shares as to which such
requisite authority will not have been obtained.

     20. Stockholder Approval. The Plan will be subject to approval by the stockholders
of the Company within twelve (12) months after the date the Plan is adopted. Such stockholder
approval will be obtained in the manner and to the degree required under Applicable Laws.

19

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