Document:

Enbridge Inc. Performance Stock Unit Plan (2007)

 Exhibit 10.5 
 ENBRIDGE INC. 
 PERFORMANCE STOCK UNIT PLAN (2007) 
  

	1.	PURPOSE 

 The purpose of the Performance
Stock Unit Plan (2007) (the “Plan”) is to: 
  

	 	(a)	align the senior management team of the Corporation with the enhancement of shareholder value by focusing on shareholder value; 

  

	 	(b)	assist in attracting, retaining, engaging, and rewarding senior executives of the Corporation; and 

  

	 	(c)	provide an opportunity for Participants to earn competitive total compensation based upon achieving the performance goals set out in this Plan. 

  

	2.	DEFINED TERMS 

 In this Plan (including any
schedules to this Plan): 
  

	 	(a)	“affiliate” has the meaning ascribed to that term in the Securities Act (Alberta); 

  

	 	(b)	“Board” means the Board of Directors of the Corporation; 

  

	 	(c)	“CEO” means the Chief Executive Officer of the Corporation; 

  

	 	(d)	“Change of Control” means: 

  

	 	(i)	the sale to a person or acquisition by a person not affiliated with the Corporation or its Subsidiaries of assets of the Corporation or its Subsidiaries having a value greater than
50% of the fair market value of the assets of the Corporation and its Subsidiaries determined on a consolidated basis prior to such sale whether such sale or acquisition occurs by way of reconstruction, reorganization, recapitalization,
consolidation, amalgamation, arrangement, merger, transfer, sale or otherwise; 

  

	 	(ii)	 any change in the holding, direct or indirect, of shares of the Corporation by a person not affiliated with the Corporation as a result of which such person, or a
group of persons, or persons acting in concert, or persons associated or affiliated with any such person or group within the meaning of the Securities Act (Alberta), are in a position to exercise effective control of the Corporation whether
such change in the holding of such shares occurs by way of takeover bid, reconstruction, reorganization, recapitalization, consolidation, amalgamation, arrangement, merger, transfer, sale or otherwise; and for the purposes of this Plan, a person or

	 	 
group of persons holding shares or other securities in excess of the number which, directly or following conversion thereof, would entitle the holders
thereof to cast 20% or more of the votes attaching to all shares of the Corporation which, directly or following conversion of the convertible securities forming part of the holdings of the person or group of persons noted above, may be cast to
elect directors of the Corporation shall be deemed, other than a person holding such shares or other securities in the ordinary course of business as an investment manager who is not using such holding to exercise effective control, to be in a
position to exercise effective control of the Corporation; 

  

	 	(iii)	any reconstruction, reorganization, recapitalization, consolidation, amalgamation, arrangement, merger, transfer, sale or other transaction involving the Corporation where
shareholders of the Corporation immediately prior to such reconstruction, reorganization, recapitalization, consolidation, amalgamation, arrangement, merger, transfer, sale or other transaction hold less than 50% of the shares of the Corporation or
of the continuing corporation following completion of such reconstruction, reorganization, recapitalization, consolidation, amalgamation, arrangement, transfer, sale or other transaction; 

  

	 	(iv)	the Corporation ceases to be a distributing corporation as that term is defined in the Canada Business Corporations Act; 

  

	 	(v)	any event or transaction which the Board, in its discretion, deems to be a Change of Control; or 

  

	 	(vi)	Incumbent Directors ceasing to be a majority of the Board; 

 provided that: 
  

	 	(vii)	any transaction whereby shares held by shareholders of the Corporation are transferred or exchanged for units or securities of a trust, partnership or other entity which trust,
partnership or other entity continues to own directly or indirectly all of the shares of the Corporation previously owned by the shareholders of the Corporation and the former shareholders of the Corporation continue to be beneficial holders of such
units or securities in the same proportions following the transaction as they were beneficial holders of shares of the Corporation prior to the transaction will be deemed not to constitute a change of control; and 

  

	 	(viii)	any change of control initiated or commenced by the Board (and whether or not such transaction was initiated or commenced by the Board shall be conclusively determined by the Board)
will not constitute a change of control for purposes of this Plan; 

  

	 	(e)	“Code” means the United States Internal Revenue Code of 1986, as amended; 

	 	(f)	“constructive dismissal” means, unless consented to by the Participant, any action that constitutes constructive dismissal of the Participant, including without
limiting the generality of the foregoing: 

  

	 	(i)	where the Participant ceases to be an officer of the Corporation, unless the Participant is appointed as an officer of a successor to a material portion of the assets of the
Corporation; 

  

	 	(ii)	a material decrease in the title, position, responsibilities, powers or reporting relationships of the Participant; 

  

	 	(iii)	a reduction in the base salary (excluding any annual incentive bonus) of the Participant; or 

  

	 	(iv)	any material reduction in the value of the Participant’s employee benefits, plans and programs (other than any annual incentive bonus); 

  

	 	(g)	“Corporation” means Enbridge Inc., and includes any successor entity thereto; 

  

	 	(h)	“Director” means a director of the Corporation; 

  

	 	(i)	“Dividend Reinvestment Plan” means the Dividend Reinvestment and Share Purchase Plan of the Corporation, as described in the Dividend Reinvestment and Share
Purchase Plan Offering Circular of the Corporation dated [January 14, 2000] as amended from time to time, or any successor plan; 

  

	 	(j)	“Fair Market Value” means, as of a particular day, the weighted average of the board lot trading prices per Share on the Toronto Stock Exchange, or the New York
Stock Exchange, for the last twenty trading days immediately prior to such day; 

  

	 	(k)	“For Cause” includes “just cause” as defined in the common law and also includes any circumstance in which the Participant shall have been convicted of a
criminal act of dishonesty resulting or intending to result directly or indirectly in gain or personal enrichment of the Participant; 

  

	 	(l)	“HRC Committee” means the Human Resources and Compensation Committee of the Board, established and duly authorized to act in accordance with the By-Laws of the
Corporation; 

  

	 	(m)	“Incumbent Director” means any member of the Board who was a member of the Board immediately prior to the occurrence of the transaction, elections or appointments
giving rise to a Change of Control and any successor to an Incumbent Director who was recommended for election at a meeting of shareholders of the Corporation, or elected or appointed to succeed any Incumbent Director, by the affirmative vote of the
directors, which affirmative vote includes a majority of the Incumbent Directors then on the Board; 

	 	(n)	“Maturity Date” has the meaning given to it in Section 5; 

  

	 	(o)	“Maximum Number” means the maximum number of Performance Stock Units that may mature with respect to each grant, which maximum number shall not exceed twice the sum
of the initial grant plus the dividend equivalent units that are granted during the Term; 

  

	 	(p)	“Maximum Performance Level” means the level of achievement of the performance measures established pursuant to Section 6(a) which would result in the Maximum
Number of Performance Stock Units granted to a Participant to mature; 

  

	 	(q)	“Notice Period” means the notice period for termination of employment agreed to between the Corporation (or its Subsidiary) and the Participant, or, in the absence
of any such agreement, the notice period required under applicable law. 

  

	 	(r)	“Participant” means an individual who becomes a participant of the Plan in accordance with Section 4; 

  

	 	(s)	“Performance Multipliers” has the meaning set forth in Schedule A; 

  

	 	(t)	“Performance Stock Unit” means a conditional right to payment which has been granted to a Participant to receive an amount of money determined in accordance with
the provisions of this Plan; 

  

	 	(u)	“Plan” means the Performance Stock Unit Plan (2007) of the Corporation described in this document, and as the same may be duly amended or varied from time to
time in accordance with the provisions of this Plan; 

  

	 	(v)	“Retirement Plan” means a pension plan of the Corporation established or in effect from time to time which applies when an employee retires from the employment of
the Corporation or a Subsidiary; 

  

	 	(w)	“Share” means a common share in the capital of the Corporation; 

  

	 	(x)	“Subsidiary” means: 

  

	 	(i)	any corporation that is a subsidiary (as such term is defined in the Canada Business Corporations Act) of the Corporation, as such provision is from time to time amended,
varied or re-enacted; 

  

	 	(ii)	any partnership or limited partnership that is controlled by the Corporation (the Corporation will be deemed to control a partnership or limited partnership if the Corporation
possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of such partnership or limited partnership, whether through the ownership of voting securities, by contract or otherwise); and

	 	(iii)	subject to regulatory approval, any corporation, partnership, limited partnership, trust, limited liability company or other form of business entity that the HRC Committee
determines ought to be treated as a subsidiary for purposes of the Plan, provided that the HRC Committee shall have the sole discretion to determine that any such entity has ceased to be a subsidiary for purposes of the Plan;

  

	 	(y)	“Target Performance Level” means, in respect of a Term, that level of achievement of the performance measures established pursuant to Section 6(a) which would
result in exactly 100% of the Performance Stock Units granted to a Participant to mature; 

  

	 	(z)	“Term” has the meaning given to it in Section 5; 

  

	 	(aa)	“Threshold Performance Level” means in respect of a Term the level of achievement of the performance measures established pursuant to Section 6(a) which would
result in the minimum number of Performance Stock Units granted to a Participant to mature; and 

  

	 	(bb)	“Trading Day” means any day on which the Toronto Stock Exchange is open for trading. 

  

	3.	GOVERNANCE 

  

	 	(a)	Subject to any determinations or approvals required to be made by the Board, the HRC Committee will administer the Plan in its sole discretion. The HRC Committee shall have the full
power and sole responsibility to interpret the provisions of the Plan and to make regulations and formulate administrative provisions for its implementation, and to make such changes in the regulations and administrative procedures as, from time to
time, the HRC Committee deems proper and in the best interests of the Corporation. Such regulations and provisions may include the delegation to any Director or Directors or any officer or officers of the Corporation or its Subsidiaries of such
administrative duties and powers of the HRC Committee as it may, in its sole discretion, deem fit. The HRC Committee may amend the Plan to correct, remedy or reconcile any errors, inconsistencies or ambiguities in this Plan. The determinations of
the HRC Committee in the administration of the Plan shall be final and conclusive. 

  

	 	(b)	Prior to the CEO requesting any grants under the Plan, the CEO will recommend to the HRC Committee for its approval the performance measures and the levels of achievement required
for Threshold Performance Level, Target Performance Level and Maximum Performance Level. The HRC Committee shall also have the authority to approve any amendments to such performance measures, the expected levels of performance and the Term;
provided that no amendment to the Term of any Performance Stock Unit shall be made which would cause the Participant to be subject to adverse tax treatment under Code Section 409A. 

	 	(c)	Upon the HRC Committee determining that the achievement of applicable performance measures has been met following the Maturity Date, the HRC Committee shall approve payments under
the Plan. 

  

	 	(d)	The HRC Committee shall also have the authority to waive any restrictions with respect to participation in the Plan or the maturity of grants under the Plan for any specific
Participants where, in the opinion of the HRC Committee, it is reasonable to do so and does not prejudice the rights of the Participant under the Plan and it does not cause the Participant to be subject to adverse tax treatment under Code
Section 409A. 

  

	 	(e)	Grants to Participants will be considered each year, unless otherwise determined at the sole discretion of the HRC Committee. 

  

	4.	PARTICIPATION AND GRANT OF UNITS 

  

	 	(a)	The CEO may recommend to the HRC Committee employees of the Corporation or any of its Subsidiaries for participation in the Plan. The HRC Committee shall consider such
recommendation and may, in its sole discretion, approve such recommended employees for participation in the Plan (each such person shall be referred to as a “Participant”). 

  

	 	(b)	The CEO shall recommend to the HRC Committee for its approval the number of Performance Stock Units to be granted to each Participant who reports directly to the CEO and the
aggregate number of Performance Stock Units to be granted to all other Participants, other than the CEO. 

  

	 	(c)	The HRC Committee will determine and recommend to the Board for its approval the number of Performance Stock Units to be granted to the CEO. 

  

	 	(d)	All grants made to a Participant shall be made on or before June 30 of the first year of the applicable Term, unless otherwise recommended by the CEO to, and approved by, the
HRC Committee. 

  

	 	(e)	Directors who are not full-time employees of the Corporation or a Subsidiary shall not be eligible to become Participants. 

  

	 	(f)	A designated employee shall have the right not to participate in the Plan, and any decision not to participate shall not affect his or her employment with the Corporation or a
Subsidiary. Participation in the Plan does not confer upon the Participant any right to continued employment with the Corporation or a Subsidiary. 

  

	5.	TERM 

 Except as otherwise provided herein or
unless otherwise determined by the HRC Committee, each Performance Stock Unit granted pursuant to the Plan shall have a fixed term (a “Term”) of not more than three years, commencing on January 1 of the first year of the Term
and ending on December 31 of the final year of the Term (the “Maturity Date”). 

	6.	MATURITY 

  

	 	(a)	The number of Performance Stock Units that mature under this Plan shall be dependent upon the achievement of the performance measures applicable thereto established by the CEO and
approved by the HRC Committee, a copy of which is attached hereto as Schedule A. Following the completion of a Term, the HRC Committee will review and determine the extent to which the performance measures have been achieved and will approve
the number of Performance Stock Units which have matured. 

  

	 	(b)	Notwithstanding the foregoing, in no event shall the number of Performance Stock Units that mature in respect of a particular grant exceed the Maximum Number in respect of such
grant. 

  

	7.	PAYMENT 

  

	 	(a)	Amount Payable 

 The amount payable to each
Participant shall in respect of a particular grant of Performance Stock Units be the amount determined by multiplying the sum of: 
  

	 	(i)	the number of Performance Stock Units held by such Participant on the Maturity Date of such Performance Stock Units, and 

  

	 	(ii)	the number of Performance Stock Units that would be credited to such Participant upon the payment of dividends by the Corporation on the Shares, based on the number of additional
Shares that a Participant would have received had the matured Performance Stock Units been treated as Shares under the Dividend Reinvestment Plan during the Term, 

 by 
  

	 	(iii)	the Performance Multiplier; and by 

  

	 	(iv)	the Fair Market Value of the Shares as at the Maturity Date. 

  

	 	(b)	Timing of Payment 

 Unless otherwise provided in
this Plan, the amount payable to each Participant pursuant to section 7(a) shall be paid after the approval of the HRC Committee and after the audited financial statements of the Corporation for the year ended on the applicable Maturity Date have
been approved by the Board, but, in any event, not later than two and one-half months after the Maturity Date. 

	 	(c)	Form of Payment 

 The amount payable to each
Participant pursuant to section 7(a), unless otherwise provided in this Plan, shall be paid in cash in the currency of Canada or the United States of America and shall be subject to applicable withholding taxes as required by applicable legislation.

  

	8.	SHARE OWNERSHIP GUIDELINES 

 If the number of
Shares held by the Participant is less than the number of Shares to be held by him or her pursuant to any share ownership guidelines of the Corporation in effect from time to time and applicable to such Participant, then the Participant shall be
required to utilize any payments made with respect to any Performance Stock Units (net of any amounts deducted pursuant to Section 11) to acquire additional Shares to increase the number of Shares held by the Participant to meet the
requirements of such share ownership guidelines. 
  

	9.	TERMINATION 

  

	 	(a)	Voluntary Termination 

 If a Participant voluntarily
terminates his or her employment with the Corporation or a Subsidiary, all unpaid and matured Performance Stock Units held by such Participant as at the date of the Participant’s termination shall be payable in accordance with Section 7.

 All unmatured Performance Stock Units held by such Participant as at the date of the Participant’s termination shall be cancelled as
of the last day of such Participant’s employment with the Corporation (or its Subsidiary). 
  

	 	(b)	Involuntary Termination Other than For Cause 

 If
the employment of a Participant with the Corporation or a Subsidiary is terminated by the Corporation (or its Subsidiary) for any reason other than For Cause, all unpaid and matured Performance Stock Units held by such Participant as at the last day
of the Participant’s employment with the Corporation (or its Subsidiary) shall be payable in accordance with Section 7. 
 A number
of unmatured Performance Stock Units held by such Participant on the last day of employment shall continue to mature in accordance with the Plan. The number of unmatured Performance Stock Units that shall continue to mature shall be prorated based
upon the number of full calendar months of active employment of the Participant during the Term to the number of months in the Term (and for this purpose the Notice Period shall be counted as active employment). Such number of Performance Stock
Units shall be paid in accordance with Section 7. 
 All other unmatured Performance Stock Units held by such Participant shall be
cancelled as at the last day of the Notice Period. 

 For the purposes of this subsection 9(b), if a Participant’s employment terminates due to the
constructive dismissal of the Participant, such termination shall be treated as an involuntary termination by the Corporation or a Subsidiary other than For Cause. 
  

	 	(c)	Involuntary Termination For Cause 

 If the
employment of a Participant is terminated by the Corporation or a Subsidiary For Cause, all unpaid Performance Stock Units held by such Participant as at the date of termination, whether matured or unmatured, shall be cancelled as of the
Participant’s last day of employment with the Corporation (or its Subsidiary 
  

	 	(d)	Death 

 If the employment of a Participant with the
Corporation or a Subsidiary is terminated as a result of the death of such Participant, all unpaid and unmatured Performance Stock Units held by the Participant as at the date of death shall be payable in accordance with Section 7. 

For the purposes of this subsection 9(d), the Vesting Date for a number of unmatured Performance Stock Units shall be the date of death of the
Participant. The number of unmatured Performance Stock Units held by such Participant as at the date of such Participant’s death that mature shall be prorated based on the number of full calendar months of active employment of the Participant
during the applicable Term to the total number of months in the Term. Such Performance Stock Units shall be paid in accordance with Section 7 within two and a half months following the Participant’s death on the assumption that the Target
Performance Level is met. 
 All other unmatured Performance Stock Units held by such Participant shall be cancelled as at the date of death.

  

	 	(e)	Retirement 

 If a Participant has attained the age
of 55 and retires from his or her employment with the Corporation or a Subsidiary pursuant to a Retirement Plan and he or she is eligible for benefits under a Retirement Plan, all unpaid and matured Performance Stock Units held by such Participant
as at the date of retirement shall be payable in accordance with Section 7. 
 A number of unmatured Performance Stock Units held by the
Participant as at the date of retirement prorated based on the number of full calendar months of active employment of the Participant during the applicable Term to the total number of months in the Term, shall continue to vest following retirement
in accordance with the Plan. 

 All other unmatured Performance Stock Units held by such Participant shall be cancelled as at the date of
retirement. 
  

	 	(f)	Disability 

 If the employment of a Participant with
the Corporation or a Subsidiary is terminated as a result of the “disability” of such Participant, all Performance Stock Units held by such Participant as at the date of disability, whether matured or unmatured, as of the last day of such
Participant’s active employment with the Corporation (or its Subsidiary) prior to such disability shall continue to be treated as if the Participant were actively employed by the Corporation (or its Subsidiary). 
 For purposes of this subsection, a Participant shall be considered to be suffering from a “disability” if he or she is eligible for benefits
under a Corporation-sponsored long term disability benefits plan. 
  

	 	(g)	Leaves of Absence 

 If a Participant commences a
parental or another leave approved by the Corporation or a Subsidiary for a period longer than three months, all unpaid and matured Performance Stock Units held by the Participant as at the last day of such Participant’s active employment with
the Corporation (or its Subsidiary) shall be payable in accordance with Section 7. 
 A number of unmatured Performance Stock Units held
by such Participant as at the commencement of such Participant’s leave prorated based on the number of full calendar months of active employment of the Participant during the Term to the total number of months in the Term, shall continue to
mature in accordance with the Plan during such Participant’s Leave. Such number of Performance Stock Units shall be paid in accordance with Section 7. 
 All other unmatured Performance Stock Units held by the Participant shall be cancelled. 
 No additional
grants of Performance Stock Units may be made to a Participant while such Participant is on a leave of absence. 
  

	 	(h)	Secondments 

 If a Participant is seconded to an
entity other than a Subsidiary, the HRC Committee (in the case of Participants that report directly to the CEO) and the CEO (in the case of all other Participants) shall determine the manner in which all Performance Stock Units held by the
Participant as at the date of the secondment shall be treated under the Plan; provided that no such Performance Stock Units shall be treated in a manner that would cause the Participant to be subject to adverse tax treatment under Code
Section 409A. 

	 	(i)	Change of Control 

 In the event of a Change of
Control, all unpaid and matured Performance Stock Units held by a Participant as at the date of the Change of Control, where the Maturity Date is December 31 of the year prior to the Change of Control, shall continue to be payable in accordance
with their terms, but in any event prior to the date of the Change of Control. 
 All unmatured Performance Stock Units held by the
Participant as at the date of the Change of Control shall mature on the date that is 30 days prior to the date of the Change of Control and based on applicable performance measures achieved from the start of the Term to that date. Each Participant
shall have paid to him or her immediately upon the Change of Control occurring, in full satisfaction for any amounts payable pursuant to Performance Stock Units under the Plan, an amount calculated pursuant to Section 7 in respect of all
matured Performance Stock Units held by such Participant. Monies to make such payment shall be placed in an irrevocable trust prior to the Change of Control. 
 Notwithstanding the above, with respect to Participants who are US citizens or resident in the U.S. for US tax purposes, no payment shall be made and no Performance Stock Unit shall mature under this subsection 8(i)
unless such Change of Control also qualifies as a change in the ownership or effective control of the Corporation, or in the ownership of a substantial portion of the assets of the Corporation, within the meaning of Code Section 409A(2)(A)(v).
In the case of a Change of Control that does not so qualify, payments to any such Participant shall be made in accordance with Section 7. The payment monies owing to these Participants will be placed in an irrevocable trust which is located in
the United States of America and subject to the claims of the general creditors of the Corporation prior to the Change of Control. 
  

	 	(j)	No Future Grants 

 Upon the occurrence of any of the
foregoing events listed under subsections 9(a) to (f) in respect of a Participant, such Participant shall not be entitled to receive any further Performance Stock Unit grants and, except as set forth herein, shall not be entitled to receive
cash payment for the value of any unpaid Performance Stock Units, matured or unmatured, held by the Participant as at the date of occurrence of such event. 
  

	10.	FUNDING 

 Except as contemplated in
subsection 9(i), for certainty, the Corporation has no obligation during the Term to pay or deposit any money into an account for the benefit of a Participant or to issue from treasury or purchase any Shares or other securities, to or for a
Participant. 

	11.	TAXES AND REPORTING 

 Notwithstanding
anything else contained herein, each Participant shall be responsible for the payment of all applicable taxes, including, but not limited to, income taxes payable in connection with the payment of the value of the Performance Stock Units and the
Corporation, its employees and agents shall bear no liability in connection with the payment of such taxes. The Corporation shall have the right to deduct from all cash payments made to a Participant any taxes required by law to be withheld with
respect to such payments. 
  

	12.	NO GUARANTEE OF EMPLOYMENT 

 The existence of
the Plan is in no way to be construed as a guarantee of continued employment for any Participant, or of entitlement to any future Plan awards, benefits, or payments. 
  

	13.	ADJUSTMENTS 

  

	 	(a)	In the event that the number of outstanding Shares of the Corporation shall be increased or decreased, or changed into, or exchanged for a different number or kind of shares or
other securities of the Corporation or another corporation, whether through a stock dividend, stock split, consolidation, recapitalization, amalgamation, reorganization, arrangement or other transaction, and such transaction or event is not a Change
in Control, the HRC Committee or the Board may make appropriate adjustment to the number or kind of shares or securities upon which Performance Stock Units are based under the Plan, and as regards to Performance Stock Units previously granted or to
be granted pursuant to the Plan, in the number and kind of shares or securities upon which the Performance Stock Units are based. 

  

	 	(b)	The appropriate adjustments in the number of Performance Stock Units may be made by the Board in its discretion in order to give effect to the adjustments in the number of Shares of
the Corporation resulting from the implementation and operation of the Shareholder Rights Plan Agreement dated as of November 9, 1995 between the Corporation and CIBC Mellon Trust Company, as the same may be amended, replaced or substituted
from time to time. 

  

	14.	EFFECT OF REORGANIZATION 

 In the event of
any take-over bid or any proposal, offer or agreement for a merger, consolidation, amalgamation, arrangement, recapitalization, liquidation, dissolution or similar transaction or other business combination that is not a Change of Control in which
the Corporation is not the surviving or continuing corporation (a “Reorganization”), all Performance Stock Units granted hereunder and outstanding on the date of such Reorganization shall be assumed by the surviving or continuing
corporation, provided that the HRC Committee or the Board may make appropriate adjustment in the manner in which vesting of or payment on such Performance Stock Units will occur prior to such assumption. If, in the event of any such Reorganization,
provision for such assumption 

 
satisfactory to the HRC Committee or the Board is not made by the surviving or continuing corporation, all unmatured Performance Stock Units held by a
Participant as at the date of the Reorganization shall vest, based on applicable performance measures achieved from the start of the Term to the date (the “Revised Maturity Date”), as determined by the HRCC, that is not less than seven
days and not more than 30 days prior to the date of the Reorganization, and each Participant shall have paid to him or her, in full satisfaction for any amounts payable pursuant to Performance Stock Units under the Plan, an amount calculated
pursuant to Section 7 in respect of all matured Performance Stock Units held by such Participant, such payment to be made within 30 days after the Revised Maturity Date determined by the HRCC. 
 Notwithstanding the above, with respect to Participants who are US citizens or resident in the U.S. for US tax purposes, no payment shall be made and no
Performance Stock Unit shall mature under this Section 14 unless such Reorganization also qualifies as a change in the ownership or effective control of the Corporation, or in the ownership of a substantial portion of the assets of the
Corporation, within the meaning of Code Section 409A(2)(A)(v). In the case of a Reorganization that does not so qualify, payments to any such Participant shall be made in accordance with Section 7. The payment monies owing to these
Participants will be placed in an irrevocable trust which is located in the United States of America and subject to the claims of the general creditors of the Corporation prior to the Reorganization. 
  

	15.	AMENDMENTS, ETC. 

 The HRC Committee may at
any time recommend to the Board for its approval the revision, suspension or discontinuance of the Plan in whole or in part. No such revision, suspension, or discontinuance shall alter or impair the rights of a Participant in respect of Performance
Stock Units previously granted to such Participant, without the consent of that Participant. In addition, no revision, suspension or discontinuance shall result in adverse taxation under Code Section 409A, unless otherwise determined by the HRC
Committee with the consent of the Participant. 
  

	16.	TRANSFERABILITY 

 Performance Stock Units are
not transferable other than by will or according to the laws of descent and distribution. 
  

	17.	CONFLICT WITH WRITTEN EMPLOYMENT AGREEMENT 

 In the event of a conflict between the terms of this Plan and the terms of any written employment agreement between a Participant and the Corporation, the terms of the written employment agreement shall prevail. 
  

	18.	EFFECTIVE DATE 

 The Plan shall take effect
on January 1, 2007.Applied Materials, Inc. Employees' Stock Purchase Plan - June 8, 2009

 Exhibit 4.1 
  
  
 APPLIED MATERIALS, INC. 
 EMPLOYEES’ STOCK PURCHASE PLAN 
 (Amended and Restated Effective as of June 8, 2009) 

 TABLE OF CONTENTS 
  

			
	 	  	Page
	 SECTION 1 PURPOSE
	  	1
		
	 SECTION 2 DEFINITIONS
	  	1
	 2.1 “1934 Act”
	  	1
	 2.2 “Board”
	  	1
	 2.3 “Code”
	  	1
	 2.4 “Committee”
	  	1
	 2.5 “Common Stock”
	  	1
	 2.6 “Company”
	  	1
	 2.7 “Compensation”
	  	1
	 2.8 “Eligible Employee”
	  	1
	 2.9 “Employee”
	  	2
	 2.10 “Employer” or “Employers”
	  	2
	 2.11 “Enrollment Date”
	  	2
	 2.12 “Grant Date”
	  	2
	 2.13 “Participant”
	  	2
	 2.14 “Plan”
	  	2
	 2.15 “Purchase Date”
	  	2
	 2.16 “Purchase Period”
	  	3
	 2.17 “Subsidiary”
	  	3
		
	 SECTION 3 SHARES SUBJECT TO THE PLAN
	  	3
	 3.1 Number Available
	  	3
	 3.2 Adjustments
	  	3
		
	 SECTION 4 ENROLLMENT
	  	3
	 4.1 Participation
	  	3
	 4.2 Payroll Withholding and Contribution
	  	3
		
	 SECTION 5 OPTIONS TO PURCHASE COMMON STOCK
	  	4
	 5.1 Grant of Option
	  	4
	 5.2 Duration of Option
	  	4
	 5.3 Number of Shares Subject to Option
	  	4
	 5.4 Other Terms and Conditions
	  	4
		
	 SECTION 6 PURCHASE OF SHARES
	  	5
	 6.1 Exercise of Option
	  	5
	 6.2 Delivery of Shares
	  	5
	 6.3 Exhaustion of Shares
	  	5
	 6.4 Tax Withholding
	  	5

  

 i 

 TABLE OF CONTENTS 
 (Continued) 
  

			
		
	 SECTION 7 WITHDRAWAL
	  	6
		
	 SECTION 8 CESSATION OF PARTICIPATION
	  	6
		
	 SECTION 9 DESIGNATION OF BENEFICIARY
	  	6
	 9.1 Designation
	  	6
	 9.2 Changes
	  	6
	 9.3 Failed Designations
	  	7
		
	 SECTION 10 ADMINISTRATION
	  	7
	 10.1 Plan Administrator
	  	7
	 10.2 Actions by Committee
	  	7
	 10.3 Powers of Committee
	  	7
	 10.4 Decisions of Committee
	  	8
	 10.5 Administrative Expenses
	  	8
	 10.6 Eligibility to Participate
	  	8
	 10.7 Indemnification
	  	8
		
	 SECTION 11 AMENDMENT, TERMINATION, AND DURATION
	  	8
	 11.1 Amendment, Suspension, or Termination
	  	8
	 11.2 Duration of the Plan
	  	10
		
	 SECTION 12 GENERAL PROVISIONS
	  	10
	 12.1 Participation by Subsidiaries
	  	10
	 12.2 Inalienability
	  	10
	 12.3 Severability
	  	10
	 12.4 Requirements of Law
	  	10
	 12.5 Compliance with Rule 16b-3
	  	10
	 12.6 No Enlargement of Employment Rights
	  	10
	 12.7 Apportionment of Costs and Duties
	  	10
	 12.8 Construction and Applicable Law
	  	11
	 12.9 Captions
	  	11
	 12.10 Automatic Transfer to Low Price Option Period
	  	11
		
	 EXECUTION
	  	11

  

 ii 

 APPLIED MATERIALS, INC. 
 EMPLOYEES’ STOCK PURCHASE PLAN 
 (Amended and Restated Effective as of
June 8, 2009) 
 SECTION 1 
 PURPOSE 
 Applied Materials, Inc. having established the Applied Materials, Inc. Employees’ Stock Purchase Plan (the
“Plan”), in order to provide eligible employees of the Company with the opportunity to purchase Common Stock through payroll deductions or, if payroll deductions are not permitted under local laws, through other means as specified by the
Committee, hereby amends and restates the Plan in its entirety, effective as of June 8, 2009 (the “Effective Date”), as set forth herein. The Plan is intended to qualify as an employee stock purchase plan under Section 423(b) of
the Code, although the Company makes no undertaking or representation to maintain such qualification. 
 SECTION 2 
 DEFINITIONS 
 2.1 “1934 Act”
means the Securities Exchange Act of 1934, as amended. Reference to a specific Section of the 1934 Act or regulation thereunder shall include such Section or regulation, any valid regulation promulgated under such Section, and any comparable
provision of any future legislation or regulation amending, supplementing or superseding such Section or regulation. 
 2.2
“Board” means the Board of Directors of the Company. 
 2.3 “Code” means the Internal Revenue Code of 1986,
as amended. Reference to a specific Section of the Code or regulation thereunder shall include such Section or regulation, any valid regulation promulgated under such Section, and any comparable provision of any future legislation or regulation
amending, supplementing or superseding such Section or regulation. 
 2.4 “Committee” shall mean the committee appointed by
the Board to administer the Plan. Any member of the Committee may resign at any time by notice in writing mailed or delivered to the Secretary of the Company. As of the Effective Date of the Plan, the Plan shall be administered by the Human
Resources and Compensation Committee of the Board. 
 2.5 “Common Stock” means the common stock of the Company, $0.01 par
value per share. 
 2.6 “Company” means Applied Materials, Inc., a Delaware corporation. 
 2.7 “Compensation” means a Participant’s base wages, excluding any overtime, bonuses, allowances or shift differential. The
Committee, in its discretion, may, on a uniform and nondiscriminatory basis, establish a different definition of Compensation prior to an Enrollment Date for all options to be granted on such Enrollment Date. 
 2.8 “Eligible Employee” means every Employee of an Employer, except (a) any Employee who immediately after the grant of an option
under the Plan, would own stock and/or hold outstanding options to purchase stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or of any Subsidiary 
  

 1 

 
of the Company (including stock attributed to such Employee pursuant to Section 424(d) of the Code), or (b) as provided in this Section 2.8.
The Committee, in its discretion, from time to time may, prior to an Enrollment Date for all options to be granted on such Enrollment Date, determine on a uniform and nondiscriminatory basis that an Employee shall not be an Eligible Employee if he
or she: (1) has not completed the required length of service with the Company, if any, as such length may be determined by the Committee in its discretion (such length of required service not to exceed two (2) years), (2) customarily
works not more than twenty (20) hours per week (or such lesser period of time as may be determined by the Committee in its discretion), (3) customarily works not more than five (5) months per calendar year (or such lesser period of
time as may be determined by the Committee in its discretion), (4) is an officer or other manager, or (5) is a highly compensated employee under Section 414(q) of the Code. An Employee who otherwise is an Eligible Employee shall be
treated as continuing to be such while the Employee is on sick leave or other leave of absence approved in writing by the Employer, except that if the period of leave exceeds ninety (90) days and the Employee’s right to reemployment is not
guaranteed by statute or contract, he or she shall cease to be an Eligible Employee on the 91st day of such leave. Until and unless determined otherwise by the Committee, Eligible Employees shall exclude each Employee (other than as excluded by subsection (a) of this Section 2.8) of an Employer who is
customarily employed by the Company and/or a Subsidiary to work less than or equal to twenty (20) hours per week or five (5) months per calendar year. 
 2.9 “Employee” means an individual who is a common-law employee of any Employer, whether such employee is so employed at the time the Plan is adopted or becomes so employed subsequent to the adoption
of the Plan. 
 2.10 “Employer” or “Employers” means any one or all of the Company and those Subsidiaries
which, with the consent of the Board or the Committee, have adopted the Plan or have been designated by the Board or the Committee in writing as an Employer for purposes of participation in the Plan. With respect to a particular Participant,
Employer means the Company or Subsidiary, as the case may be, that directly employs the Participant. 
 2.11 “Enrollment
Date” means such dates as may be determined by the Committee, in its discretion and on a uniform and nondiscriminatory basis, from time to time. 
 2.12 “Grant Date” means any date on which a Participant is granted an option under the Plan. 
 2.13 “Participant” means an Eligible Employee who (a) has become a Participant in the Plan pursuant to Section 4.1 and (b) has not ceased to be a Participant pursuant to Section 8 or Section 9.

 2.14 “Plan” means the Applied Materials, Inc. Employees’ Stock Purchase Plan, as set forth in this instrument and as
hereafter amended from time to time. 
 2.15 “Purchase Date” means such dates on which each outstanding option granted under
the Plan shall be exercised (except in such instance in which the Plan has been terminated), as may be determined by the Committee, in its discretion and on a uniform and nondiscriminatory basis from time to time prior to an Enrollment Date for all
options to be granted on such Enrollment Date. 
  

 2 

 2.16 “Purchase Period” means the period beginning on such date as may be determined by
the Committee, in its discretion and on a uniform and nondiscriminatory basis, and ending on a Purchase Date. 
 2.17
“Subsidiary” means any corporation in an unbroken chain of corporations beginning with the Company if each of the corporations other than the last corporation in the unbroken chain then owns stock possessing fifty percent
(50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 
 SECTION 3 
 SHARES SUBJECT TO THE PLAN 
 3.1 Number Available. A maximum of 118,200,000 shares of Common Stock shall be available for issuance pursuant to the Plan. Shares issued under the Plan may be newly issued shares or treasury shares.

 3.2 Adjustments. In the event of any reorganization, recapitalization, stock split, reverse stock split, stock dividend, spin
off, combination of shares, merger, consolidation, offering of rights or other similar change in the capital structure of the Company, the Committee shall proportionately adjust the number, kind and purchase price of the shares available for
purchase under the Plan, the per person share number limits on purchases and the purchase price and number of shares subject to any option under the Plan which has not yet been exercised. 
 SECTION 4 
 ENROLLMENT 
 4.1 Participation. Each Eligible Employee may elect to become a Participant by enrolling or re-enrolling in the Plan effective as of any
Enrollment Date. In order to enroll, an Eligible Employee must complete, sign and submit to the Company an enrollment form in such form, manner and by such deadline as may be specified by the Committee from time to time, in its discretion and on a
nondiscriminatory basis, and which may be in electronic form. Any Participant whose option expires and who has not withdrawn from the Plan shall be automatically re-enrolled in the Plan on the Enrollment Date immediately following the Purchase Date
on which his or her option expires. 
 4.2 Payroll Withholding and Contribution. On his or her enrollment form, each Participant
must elect to make Plan contributions via payroll withholding from his or her Compensation or, if payroll withholding is not permitted under local laws, via such other means as specified by the Committee. Pursuant to such procedures as the Committee
may specify from time to time (which may be in electronic form), a Participant may elect to have withholding equal to, or otherwise contribute, a whole percentage from one percent (1%) to ten percent (10%) (or such greater or lesser
percentage or dollar amount that the Committee may establish from time to time, in its discretion and on a uniform and nondiscriminatory basis, for all options to be granted on any Enrollment Date). Unless and until the Committee determines
otherwise, no Participant may contribute more than $6,500 during any one Purchase Period. If permitted by the Committee, a Participant instead may elect to have a specific amount withheld or to contribute a specific amount, in dollars or in the
applicable local currency, subject to such uniform and nondiscriminatory rules as the Committee in its discretion may specify. A Participant may elect to increase or decrease his or her rate of payroll withholding or contribution by submitting an
election (which may be in electronic form) in accordance with, and if and to the extent permitted by, procedures established by the Committee from time to time, which may, if permitted by the Committee, include a decrease to zero percent (0%);
provided, however, that unless determined 
  

 3 

 
otherwise by the Committee, a decrease to zero percent (0%) shall be deemed a withdrawal from the Plan. A Participant may stop his or her payroll withholding
or contribution by submitting an election in accordance with and to the extent permitted by procedures as may be established by the Committee from time to time. In order to be effective as of a specific date, an enrollment election must be received
by the Company no later than the deadline specified by the Committee, in its discretion and on a nondiscriminatory basis, from time to time. Any Participant who is automatically re-enrolled in the Plan shall be deemed to have elected to continue his
or her payroll withholding or contributions at the percentage last elected by the Participant. Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code and Section 5.3 of the Plan, the Company may
automatically decrease a Participant’s payroll deductions to zero percent (0%) at any time during an option period. Under such circumstances, payroll deductions shall recommence at the rate provided in such Participant’s enrollment form at
the beginning of the first Purchase Period which is scheduled to end in the following calendar year, unless terminated by the Participant as provided in Section 7 of the Plan. 
 SECTION 5 
 OPTIONS TO PURCHASE COMMON STOCK 
 5.1 Grant of Option. On each Enrollment Date on which the Participant enrolls or re-enrolls in the Plan, he or she shall be granted an option
to purchase shares of Common Stock. 
 5.2 Duration of Option. Each option granted under the Plan shall expire on the earliest to
occur of (a) the completion of the purchase of shares on the last Purchase Date occurring within 27 months of the Grant Date of such option, (b) such shorter option period as may be established by the Committee from time to time, in its
discretion and on a uniform and nondiscriminatory basis, prior to an Enrollment Date for all options to be granted on such Enrollment Date, or (c) the date on which the Participant ceases to be such for any reason. 
 5.3 Number of Shares Subject to Option. The maximum number of shares available for purchase by each Participant under the option or on any
given Purchase Date shall be established by the Committee from time to time prior to an Enrollment Date for all options to be granted on such Enrollment Date, subject to this Section 5.3. Unless and until otherwise determined by the Committee,
a Participant may not purchase more than 1,000 shares (subject to adjustment in accordance with Section 3.2) on any given Purchase Date. Notwithstanding any contrary provision of the Plan, to the extent required under Section 423(b) of the
Code, an option (taken together with all other options then outstanding under this Plan and under all other similar employee stock purchase plans of the Employers) shall not give the Participant the right to purchase shares at a rate which accrues
in excess of $25,000 of fair market value at the applicable Grant Dates of such shares in any calendar year during which such Participant is enrolled in the Plan at any time. 
 5.4 Other Terms and Conditions. Each option shall be subject to the following additional terms and conditions: 
 (a) payment for shares purchased under the option shall be made only through payroll withholding under Section 4.2, unless payroll
withholding is not permitted under local laws as determined by the Committee, in which case the Participant may contribute by such other means as specified by the Committee; 
 (b) purchase of shares upon exercise of the option shall be accomplished only in accordance with Section 6.1; 
  

 4 

 (c) the price per share under the option shall be determined as provided in
Section 6.1, subject to adjustment pursuant to Section 3.2; and 
 (d) the option in all respects shall be subject
to such other terms and conditions, applied on a uniform and nondiscriminatory basis, as the Committee shall determine from time to time in its discretion. 
 SECTION 6 
 PURCHASE OF SHARES 
 6.1 Exercise of Option. Subject to Section 6.2 and the limits established under Section 5.3, on each Purchase Date, the funds then
credited to each Participant’s account shall be used to purchase whole shares of Common Stock. Any cash remaining after whole shares of Common Stock have been purchased or that exceed the $25,000 cap described in Section 5.3 above, shall
be refunded to the Participant without interest (except as otherwise required under local laws). The price per Share of the Shares purchased under any option granted under the Plan shall be determined by the Committee from time to time, in its
discretion and on a uniform and nondiscriminatory basis, for all options to be granted on an Enrollment Date. However, in no event shall the price be less than eighty-five percent (85%) of the lower of: 
 (a) the closing price per Share on the Grant Date for such option on the Nasdaq Global Select Market; or 
 (b) the closing price per Share on the Purchase Date on the Nasdaq Global Select Market. 
 If a closing price is not available on the Grant Date or Purchase Date, then the closing price per Share referred to in 6.1(a) and (b) above shall refer to the
closing price per Share on the first Nasdaq Global Select Market trading day immediately following the Grant Date or preceding the Purchase Date, respectively. 
 6.2 Delivery of Shares. As directed by the Committee in its sole discretion, shares purchased on any Purchase Date shall be delivered directly to the Participant or to a custodian or broker, if any,
designated by the Committee to hold shares for the benefit of the Participants. As determined by the Committee from time to time, such shares shall be delivered as physical certificates or by means of a book entry system. 
 6.3 Exhaustion of Shares. If at any time the shares available under the Plan are over-enrolled, enrollments shall be reduced to eliminate the
over-enrollment, as the Committee determines, which determination shall be on a uniform and nondiscriminatory manner. For example, the Committee may determine that such reduction method shall be “bottom up”, with the result that all option
exercises for one share shall be satisfied first, followed by all exercises for two shares, and so on, until all available shares have been exhausted. Any funds that, due to over-enrollment, cannot be applied to the purchase of whole shares shall be
refunded to the Participants without interest thereon, except as otherwise required under local laws. 
 6.4 Tax
Withholding. Prior to the delivery of any shares purchased under the Plan, the Company shall have the power and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy all tax and
social insurance liability obligations and requirements in connection with the options and shares purchased thereunder, if any, including, without limitation, all federal, state, and local taxes (including the 

  

 5 

 
Participant’s FICA obligation, if any) that are required to be withheld by the Company or the employing Subsidiary, the Participant’s and, to the
extent required by the Company (or the employing Subsidiary), the Company’s (or the employing Subsidiary’s) fringe benefit tax liability, if any, associated with the grant, vesting, or sale of shares and any other Company (or employing
Subsidiary) taxes the responsibility for which the Participant has agreed to bear with respect to such shares. 
 SECTION 7 

WITHDRAWAL 
 A Participant may withdraw
from the Plan by submitting a withdrawal form to the Company in such form and manner as the Committee may specify (which may be in electronic form). A withdrawal shall be effective only if it is received by the Company by the deadline specified from
time to time by the Committee, in its discretion and on a uniform and nondiscriminatory basis. Unless otherwise determined by the Committee, when a withdrawal becomes effective, the Participant’s payroll contributions shall cease and all
amounts then credited to the Participant’s account shall be distributed to him or her, without interest thereon, except as otherwise required under local laws. 
 SECTION 8 
 CESSATION OF PARTICIPATION 
 A Participant shall cease to be a Participant immediately upon the cessation of his or her status as an Eligible Employee (for example, because of his or
her termination of employment from all Employers for any reason), except that the Committee, in its discretion and on a uniform and nondiscriminatory basis, may permit an individual who has ceased to be an Eligible Employee to exercise his or her
option on the next Purchase Date to the extent permitted by Code Section 423. As soon as practicable after such cessation, the Participant’s payroll contributions shall cease and all amounts then credited to the Participant’s account
shall be distributed to him or her without interest thereon, except as otherwise required under local laws. 
 SECTION 9 
 DESIGNATION OF BENEFICIARY 
 9.1
Designation. Each Participant may, pursuant to such uniform and nondiscriminatory procedures as the Committee may specify in its discretion from time to time, designate one or more individuals to receive any amounts credited to the
Participant’s account at the time of his or her death (“Beneficiaries”). Notwithstanding any contrary provision of this Section 9, Sections 9.1 and 9.2 shall be operative only after, and for so long as, the Committee determines
on a uniform and nondiscriminatory basis to permit the designation of Beneficiaries. 
 9.2 Changes. A Participant may designate
different Beneficiaries or may revoke a prior Beneficiary designation at any time by delivering a new designation or revocation of a prior designation, as applicable, in like manner. Any designation or revocation shall be effective only if it is
received by the Committee. However, when so received, the designation or revocation shall be effective as of the date the designation or revocation is executed, whether or not the Participant still is living, but without prejudice to the Committee
on account of any payment made before the change is recorded. The last effective designation received by the Committee shall supersede all prior designations. 
  

 6 

 9.3 Failed Designations. If a Participant dies without having effectively designated a
Beneficiary, or if no Beneficiary survives the Participant, the Participant’s account shall be payable to his or her estate. 
 SECTION 10 
 ADMINISTRATION 
 10.1 Plan Administrator. The Plan shall be administered by the Committee. The Committee shall have the authority to control and manage the operation and administration of the Plan. 
 10.2 Actions by Committee. Each decision of a majority of the members of the Committee then in office shall constitute the final and binding
act of the Committee. The Committee may act with or without a meeting being called or held and shall keep minutes of all meetings held and a record of all actions taken by written consent. 
 10.3 Powers of Committee. The Committee shall have all powers and discretion necessary or appropriate to administer the Plan and to control
its operation in accordance with its terms, including, but not by way of limitation, the following discretionary powers: 
 (a) To interpret and determine the meaning and validity of the provisions of the Plan and the options and to determine any question arising under, or in connection with, the administration, operation or validity of the Plan or the options;

 (b) To determine the form and manner for Participants to make elections under the Plan; 
 (c) To determine any and all considerations affecting the eligibility of any Employee to become a Participant or to remain a Participant
in the Plan; 
 (d) To cause an account or accounts to be maintained for each Participant and establish rules for the
crediting of contributions and/or shares to the account(s); 
 (e) To determine the time or times when, and the number of
shares for which, options shall be granted; 
 (f) To establish and revise an accounting method or formula for the Plan;

 (g) To designate a custodian or broker to receive shares purchased under the Plan and to determine the manner and form in
which shares are to be delivered to the designated custodian or broker; 
 (h) To determine the status and rights of
Participants and their Beneficiaries or estates; 
 (i) To employ such brokers, counsel, agents and advisers, and to obtain
such broker, legal, clerical and other services, as it may deem necessary or appropriate in carrying out the provisions of the Plan; 
 (j) To establish, from time to time, rules for the performance of its powers and duties and for the administration of the Plan; 
  

 7 

 (k) To adopt such procedures and subplans as are necessary or appropriate to permit
participation in the Plan by employees who are foreign nationals or employed outside of the United States; and 
 (l) To
delegate to any one or more of its members or to any other person including, but not limited to, employees of any Employer, severally or jointly, the authority to perform for and on behalf of the Committee one or more of the functions of the
Committee under the Plan. 
 10.4 Decisions of Committee. All actions, interpretations, and decisions of the Committee shall be
made in the sole discretion of the Committee and shall be conclusive and binding on all persons, and shall be given the maximum deference permitted by law. 
 10.5 Administrative Expenses. All expenses incurred in the administration of the Plan by the Committee, or otherwise, including legal fees and expenses, shall be paid and borne by the Employers, except any
stamp duties or transfer taxes applicable to the purchase of shares may be charged to the account of each Participant. Any brokerage fees for the purchase of shares by a Participant shall be paid by the Company, but fees and taxes (including
brokerage fees) for the transfer, sale or resale of shares by a Participant, or the issuance of physical share certificates, shall be borne solely by the Participant. 
 10.6 Eligibility to Participate. No member of the Committee who is also an employee of an Employer shall be excluded from participating in the Plan if otherwise eligible, but he or she shall not be
entitled, as a member of the Committee, to act or pass upon any matters pertaining specifically to his or her own account under the Plan. 
 10.7 Indemnification. Each of the Employers shall, and hereby does, indemnify and hold harmless the members of the Committee and the Board, from and against any and all losses, claims, damages or liabilities, including
attorneys’ fees and amounts paid, with the approval of the Board or the Committee, in settlement of any claim, arising out of or resulting from the implementation of a duty, act or decision with respect to the Plan, so long as such duty, act or
decision does not involve gross negligence or willful misconduct on the part of any such individual. 
 SECTION 11 
 AMENDMENT, TERMINATION, AND DURATION 
 11.1
Amendment, Suspension, or Termination. The Board or the Committee, in its sole discretion, may amend, suspend or terminate the Plan, or any part thereof, at any time and for any reason. If the Plan is amended, suspended or terminated,
the Board or the Committee, in its discretion, may elect to terminate all outstanding options either immediately or upon completion of the purchase of shares on the next Purchase Date (which, notwithstanding Section 2.15, may be sooner than
originally scheduled, if determined by the Board or the Committee in its discretion), or may elect to permit options to expire in accordance with their terms (and participation to continue through such expiration dates). If the options are
terminated prior to expiration, all amounts then credited to Participants’ accounts that have not been used to purchase shares shall be returned to the Participants (without interest thereon, except as otherwise required under local laws) as
soon as administratively practicable. Except as provided in Section 3.2 and this Section 11 hereof, no amendment may make any change in any option theretofore granted which adversely affects the rights of any Participant unless his or her
consent is obtained. 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 exchange rule), the Company 

  

 8 

 
shall obtain stockholder approval of any amendment in such a manner and to such a degree as required. In addition, an amendment will be subject to
stockholder approval if the Committee or the Board, in their sole discretion, deems such amendment to be a material amendment, except with respect to such an amendment which will impact, in the aggregate, no more than five percent (5%) of the
shares reserved for issuance under the Plan. The following amendments shall be deemed material amendments for purposes of the preceding sentence (i) material increases to the benefits accrued to Participants under the Plan; (ii) increases
to the total number of securities that may be issued under the Plan; (iii) material modifications to the requirements for participation in the Plan, and (iv) the addition of a new provision allowing the Board or the Committee to lapse or
waive restrictions at its discretion. The amendment, suspension, or termination of the Plan shall not, without the consent of the Participant, alter or impair any rights or obligations under any option theretofore granted to such Participant. No
option may be granted during any period of suspension or after termination of the Plan. Without stockholder approval and without regard to whether any Participant rights may be considered to have been “adversely affected,” the Committee
shall be entitled to change the duration of an option, limit the frequency and/or number of changes in the amount withheld during the duration of an option, 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 Committee determines in its sole discretion advisable which are consistent with the Plan. 
 Without regard to whether any Participant’s rights may be considered to have been “adversely affected”, in the event the Committee determines that the ongoing operation of the Plan may result in unfavorable financial
accounting consequences, the Committee 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: 
 (a) Amending the Plan to conform with the safe harbor definition under Statement of Financial Accounting Standards 123(R), including with
respect to an option issued at the time of the amendment; 
 (b) Increasing or otherwise altering the exercise price for any
option including an option issued at the time of the change in exercise price; 
 (c) Reducing the maximum percentage of
Compensation a Participant may elect to set aside as payroll deductions; 
 (d) Shortening the duration of any option so that
the option ends on a new Purchase Date, including an option issued at the time of the Committee action; and 
 (e) Reducing
the number of shares that may be purchased upon exercise of outstanding options. 
 Such modifications or amendments shall not require stockholder approval
or the consent of any Participants. 
  

 9 

 11.2 Duration of the Plan. The Plan shall commence on the date specified herein, and subject
to Section 11.1 (regarding the Board’s and the Committee’s right to amend or terminate the Plan), shall remain in effect thereafter. 
 SECTION 12 
 GENERAL PROVISIONS 
 12.1 Participation by Subsidiaries. One or more Subsidiaries of the Company may become participating Employers by adopting the Plan and obtaining approval for such adoption from the Board or the Committee.
By adopting the Plan, a Subsidiary shall be deemed to agree to all of its terms, including, but not limited to, the provisions granting exclusive authority (a) to the Board and the Committee to amend the Plan, and (b) to the Committee to
administer and interpret the Plan. An Employer may terminate its participation in the Plan at any time. The liabilities incurred under the Plan to the Participants employed by each Employer shall be solely the liabilities of that Employer, and no
other Employer shall be liable for benefits accrued by a Participant during any period when he or she was not employed by such Employer. 
 12.2 Inalienability. In no event may either a Participant, a former Participant or his or her Beneficiary, spouse or estate sell, transfer, anticipate, assign, hypothecate, or otherwise dispose of any right or interest under the
Plan; and such rights and interests shall not at any time be subject to the claims of creditors nor be liable to attachment, execution or other legal process. Accordingly, for example, a Participant’s interest in the Plan is not transferable
pursuant to a domestic relations order. 
 12.3 Severability. In the event any provision of the Plan shall be held illegal or
invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 
 12.4 Requirements of Law. The granting of options and the issuance of shares shall be subject to all applicable laws, rules, and regulations,
and to such approvals by any governmental agencies or securities exchanges as the Committee may determine are necessary or appropriate. 
 12.5 Compliance with Rule 16b-3. Any transactions under this Plan with respect to officers, as defined in Rule 16a-1 promulgated under the 1934 Act, are intended to comply with all applicable conditions of Rule 16b-3. To the
extent any provision of the Plan or action by the Committee fails to so comply, it shall be deemed null and void to the extent permitted by law and deemed advisable by the Committee. Notwithstanding any contrary provision of the Plan, if the
Committee specifically determines that compliance with Rule 16b-3 no longer is required, all references in the Plan to Rule 16b-3 shall be null and void. 
 12.6 No Enlargement of Employment Rights. Neither the establishment or maintenance of the Plan, the granting of options, the purchase of shares, nor any action of any Employer or the Committee, shall be
held or construed to confer upon any individual any right to be continued as an employee of the Employer nor, upon dismissal, any right or interest in any specific assets of the Employers other than as provided in the Plan. Each Employer expressly
reserves the right to discharge any employee at any time, with or without cause. 
 12.7 Apportionment of Costs and Duties. All
acts required of the Employers under the Plan may be performed by the Company for itself and its Subsidiaries, and the costs of the Plan may be equitably apportioned by the Committee among the Company and the other 

  

 10 

 
Employers. Whenever an Employer is permitted or required under the terms of the Plan to do or perform any act, matter or thing, it shall be done and
performed by any officer or employee of the Employers who is thereunto duly authorized by the Employers. 
 12.8 Construction and
Applicable Law. The Plan is intended to qualify as an “employee stock purchase plan” within the meaning of Section 423(b) of the Code. Any provision of the Plan which is inconsistent with Section 423(b) of the Code
shall, without further act or amendment by the Company or the Committee, be reformed to comply with the requirements of Section 423(b). The provisions of the Plan shall be construed, administered and enforced in accordance with such Section and
with the laws of the State of California, excluding California’s conflict of laws provisions. 
 12.9 Captions. The captions
contained in and the table of contents prefixed to the Plan are inserted only as a matter of convenience, and in no way define, limit, enlarge or describe the scope or intent of the Plan nor in any way shall affect the construction of any provision
of the Plan. 
 12.10 Automatic Transfer to Low Price Option Period. To the extent permitted by applicable laws and specified by
the Committee in advance for particular option periods, if the fair market value of the Common Stock on any Enrollment Date is higher than the fair market value of the Common Stock on the first day of any later Purchase Period during the same option
period, then all Participants in such option period shall be automatically withdrawn from such option period and automatically re-enrolled in the immediately following new option period. 
 EXECUTION 
 IN WITNESS WHEREOF, Applied Materials, Inc., by its duly authorized
officer, has executed this restated Plan on the date indicated below. 
  

							
		 		 	APPLIED MATERIALS, INC.
				
	Dated: July 22, 2009	 		 	By	 	/s/    Ron Miller
		 		 		 	Title: Corporate Vice President, Global Rewards

  

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