Document:

exv10w2

 

  

Exhibit 10.2

EMULEX CORPORATION

EXECUTIVE BONUS PLAN

Plan Purpose

To focus members of the management team on the achievement of specific Company and individual
accomplishments that contribute to the creation of shareholder value.

To assist in attracting and retaining top quality management.

General Plan Description

The Bonus Plan provides for a quarterly cash award based upon Company performance against net
revenue and net operating income plan goals and specified business goals. In addition, a
discretionary bonus for recognition of extraordinary contributions to the success of the company
may be recommended. All bonus recommendations are subject to the approval of the Compensation
Committee.

Eligibility

Corporate officers, executive officers, operating officers, vice presidents, and senior directors,
excluding those eligible for sales commission (unless otherwise indicated within this plan), are
eligible for selection to participate in the Executive Bonus Plan. A participant must be an active
regular full-time employee.

Participation and Term

Actual Executive Bonus Plan participants will normally be selected from among those eligible
annually, prior to the start of each fiscal year, by the Chairman and Chief Executive Officer and
approved by the Compensation Committee. The Plan is based on a fiscal year and may be modified,
extended, or canceled annually at the discretion of the Compensation Committee. A participant must
be an employee for the entire quarter to be eligible for a quarterly bonus. No proration formula
will be in effect.

Target Bonus Opportunity

Each eligible participant will be assigned a target award opportunity expressed as a percentage of
their actual gross base salary at the end of the respective quarter. The target award opportunity
for:

Participant Category 1 is 90%

Participant Category 2 is 70%

Participant Category 3 is 60%

Participant Category 4 is 50%

Participant Category 5 is 45%

Participant Category 6 is 35%

Participant Category 7 is 10%

 

 

Bonus Award Criteria

Bonus award criteria will be based upon achieving a combination of corporate performance goals.

The weighting factors are:

	 	 	 	 	 	 	 	 	 
	 	 	Participant Categories	 	 
	 	 	1, 3, 4, 5, 6, and 7	 	Participant Category 2
	Net revenue performance
	 	 	45	%	 	 	50	%
	Net operating income
	 	 	55	%	 	 	50	%

The actual goals for measurement purposes will be the Company’s fiscal Annual Operating Plan (AOP)
as approved by the Board of Directors. Corporate bonus components will be calculated according to
the following procedure:

	1.	 	The target bonus percentage times the participant’s quarterly gross base salary equals
	 	 	the overall award target.
	 
	 	 	Example:  35% x $25,000 (quarterly salary) = $8,750 target award
	 
	2.	 	The weighting factors for net revenue, net operating income, and subjective as stated above
times the overall target award potential give the bonus target for each weighting factor.

			
	Example:  45%
x $8,750 = $3,938.00 (net revenue target)

	
55% x $8,750 = $4,812.00 (net operating income target)

	3.	 	An accelerator formula of 1.5 x % of performance less 50% (Category 2 Participants: 2.0 x %
of performance less 100%) will be used for each part of the quantitative bonus award
calculation to reinforce over-achievement opportunity as well as to minimize any bonus
payments for performance below fiscal AOP planned levels.
	 
	 	 	Using the Example if the first quarter performance is 105% of net revenue and 110% of net
income:

	 	 	 
	 

	 	(105% x 1.50) less 50% = 157.5%
– 50% = 107.5% of net revenue target: 1.075
x $3,938.00 = $4,233.35 net revenue bonus payment
	 
	 	 
	 

	 	(110% x 1.50) less 50% = 165% – 50% = 115% of net operating income target:
	 

	 	1.15% x $4,812.00 = $5,533.80 net operating income bonus payment
	 
	 	 
	 

	 	Total first quarter bonus award for revenue and income = $9,767.15.

 

 

Using the Example if the second quarter performance is 90% of net revenue and
80% of net
operating income:

	 	 	 
	 

	 	(90% x 1.50) less 50% = 135% – 50% = 85% of net revenue target:
	 

	 	.85 x $3,938.00= $3,347.30 net revenue bonus payment
	 
	 	 
	 

	 	(80% x 1.50) less 50% = 120% – 50% = 70% of net operating income target:
	 

	 	.70% x $4,812.00 = $3,368.40 net operating income bonus payment
	 
	 

	 	Total second quarter bonus award for revenue and income = $6,715.70

	4.	 	Revenue and operating income will be treated as separate bonuses independent of one another
regardless of the award formula. However, a minimum threshold of 80% of the Board of
Directors’ approved AOP for revenue must be achieved for a revenue bonus payout. Likewise, a
minimum threshold of 80% of the Board of Directors’ approved AOP for operating income must be
achieved for an operating income payout. No bonus payout of any kind shall be made if
operating income falls below 50% of the AOP approved plan.

Discretionary Bonuses

Occasionally, an individual makes an extraordinary contribution to the success of the company, a
contribution that deserves special recognition and financial reward. It is the intention of this
“Discretionary Bonus” provision to provide the President/CEO with the latitude to recommend unusual
bonus payments to be made to such contributors when they occur. Such bonus recommendations are not
subject to the guidelines of the plan described above, but are subject to the review and prior
approval of the Compensation Committee.

Payment of Awards

Any proposed awards by the President/CEO must be reviewed and approved by the Compensation
Committee.

Awards will be paid approximately 30 days following the end of each quarter. All legally required
deductions will be withheld.

Plan Administration

The plan will be administered under the direction of the President/CEO of Emulex Corporation upon
approval by the Emulex Compensation Committee. The administrator’s authority will include, but not
be limited to:

Final approval of plan participants, corporate performance goals, award opportunity and
award payment.

Interpretation of all rules pertaining to the plan.

Changes to the plan or termination of the plan, provided such changes or termination
do not adversely affect the award opportunity or difficulty of earning awards following
the beginning of the fiscal year.

Treatment of special events in calculating performance versus plan, such as a major
acquisition or changes in accounting regulations.

 

 

Plan Term

This Plan will become effective on the first day of the fiscal year and end on the last day of the
fiscal year.

Foreign Currency Considerations

All plan participants whose gross base salary is not denominated in U.S. dollars will be paid in
the same currency as their gross base salary as will all bonus calculations will be made using the
equivalent base salary in US currency as indicated in the most recent payroll information.

Definitions

Active Regular Full-time Employee: An employee working 40 hours per week.

Gross Base Salary: An employee’s base salary plus shift differential and lead bonus, if
applicable. Does not include payment for overtime, bonus payments of any type, or other income
such as relocation allowances, employee referral payments, etc.

Net Revenue: Refers to consolidated net sales.

Net Operating Income: Refers to consolidated
earnings from operations before interest/bonus/profit sharing/retirement savings plan/other income & expense, any workers compensation
related expense and income taxes.

Termination for Cause: Termination of employment as a result of violation of one or more
written or unwritten Company policies, procedures, principles or rules regarding employee conduct
and behavior. If an employee is terminated for cause prior to payment of a quarterly bonus, the
employee will not be eligible for the payment.

 

 

EMULEX CORPORATION

EXECUTIVE BONUS PLAN

	 	 	 
	Approved by Compensation Committee:
	 	 
	 
	 	 
	 

	 	Date: August 22, 2007
	 
	 	 
	Bruce C. Edwards
	 	 
	 
	 	 
	 

	 	Date: August 22, 2007
	 
	 	 
	Don M. Lyle
	 	 
	 
	 	 
	Approved by Executive Chairman:
	 	 
	 
	 	 
	 

	 	Date: August 22, 2007
	 
	 	 
	Paul F. Folinoexv4w1

 

Exhibit 4.1

Zimbra, Inc.

2004 Stock Plan

Adopted on April 29, 2004

(as amended on January 21, 2005, November 2, 2005, January 12, 2006 and December 5, 2006)

 

 

	 	 	 	 	 
	 	 	Page No.	 
	SECTION 1. ESTABLISHMENT AND PURPOSE
	 	 	1	 
	 
	 	 	 	 
	SECTION 2. ADMINISTRATION
	 	 	1	 
	(a) Committees of the Board of Directors
	 	 	1	 
	(b) Authority of the Board of Directors
	 	 	1	 
	 
	 	 	 	 
	SECTION 3. ELIGIBILITY
	 	 	1	 
	(a) General Rule
	 	 	1	 
	(b) Ten-Percent Stockholders
	 	 	1	 
	 
	 	 	 	 
	SECTION 4. STOCK SUBJECT TO PLAN
	 	 	2	 
	(a) Basic Limitation
	 	 	2	 
	(b) Additional Shares
	 	 	2	 
	 
	 	 	 	 
	SECTION 5. TERMS AND CONDITIONS OF AWARDS OR SALES
	 	 	2	 
	(a) Stock Purchase Agreement
	 	 	2	 
	(b) Duration of Offers and Nontransferability of Rights
	 	 	2	 
	(c) Purchase Price
	 	 	2	 
	(d) Withholding Taxes
	 	 	2	 
	(e) Restrictions on Transfer of Shares and Minimum Vesting
	 	 	3	 
	 
	 	 	 	 
	SECTION 6. TERMS AND CONDITIONS OF OPTIONS
	 	 	3	 
	(a) Stock Option Agreement
	 	 	3	 
	(b) Number of Shares
	 	 	3	 
	(c) Exercise Price
	 	 	3	 
	(d) Exercisability
	 	 	3	 
	(e) Basic Term
	 	 	4	 
	(f) Termination of Service (Except by Death)
	 	 	4	 
	(g) Leaves of Absence
	 	 	4	 
	(h) Death of Optionee
	 	 	4	 
	(i) Restrictions on Transfer of Shares and Minimum Vesting
	 	 	5	 
	(j) Transferability of Options
	 	 	5	 
	(k) Withholding Taxes
	 	 	5	 
	(l) No Rights as a Stockholder
	 	 	6	 
	(m) Modification, Extension and Assumption of Options
	 	 	6	 
	 
	 	 	 	 
	SECTION 7. PAYMENT FOR SHARES
	 	 	6	 
	(a) General Rule
	 	 	6	 
	(b) Surrender of Stock
	 	 	6	 
	(c) Services Rendered
	 	 	6	 
	(d) Promissory Note
	 	 	6	 
	(e) Exercise/Sale
	 	 	6	 
	(f) Exercise/Pledge
	 	 	7	 
	 
	 	 	 	 
	i

 

 

	 	 	 	 	 
	 	 	Page No.	 
	SECTION 8. ADJUSTMENT OF SHARES
	 	 	7	 
	(a) General
	 	 	7	 
	(b) Mergers and Consolidations
	 	 	7	 
	(c) Reservation of Rights
	 	 	8	 
	 
	 	 	 	 
	SECTION 9. SECURITIES LAW REQUIREMENTS
	 	 	8	 
	(a) General
	 	 	8	 
	(b) Financial Reports
	 	 	8	 
	 
	 	 	 	 
	SECTION 10. NO RETENTION RIGHTS
	 	 	9	 
	 
	 	 	 	 
	SECTION 11. DURATION AND AMENDMENTS
	 	 	9	 
	(a) Term of the Plan
	 	 	9	 
	(b) Right to Amend or Terminate the Plan
	 	 	9	 
	(c) Effect of Amendment or Termination
	 	 	9	 
	 
	 	 	 	 
	SECTION 12. DEFINITIONS
	 	 	9	 

ii

 

 

Zimbra, Inc. 2004 Stock Plan

SECTION 1. ESTABLISHMENT AND PURPOSE.

          The purpose of the Plan is to offer selected persons an opportunity to acquire a proprietary
interest in the success of the Company, or to increase such interest, by purchasing Shares of the
Company’s Stock. The Plan provides both for the direct award or sale of Shares and for the grant
of Options to purchase Shares. Options granted under the Plan may include Nonstatutory Options as
well as ISOs intended to qualify under Section 422 of the Code.

          Capitalized terms are defined in Section 12.

SECTION 2. ADMINISTRATION.

          (a) Committees of the Board of Directors. The Plan may be administered by one or more
Committees. Each Committee shall consist of one or more members of the Board of Directors who have
been appointed by the Board of Directors. Each Committee shall have such authority and be
responsible for such functions as the Board of Directors has assigned to it. If no Committee has
been appointed, the entire Board of Directors shall administer the Plan. Any reference to the
Board of Directors in the Plan shall be construed as a reference to the Committee (if any) to whom
the Board of Directors has assigned a particular function.

          (b) Authority of the Board of Directors. Subject to the provisions of the Plan, the Board of
Directors shall have full authority and discretion to take any actions it deems necessary or
advisable for the administration of the Plan. All decisions, interpretations and other actions of
the Board of Directors shall be final and binding on all Purchasers, all Optionees and all persons
deriving their rights from a Purchaser or Optionee.

SECTION 3. ELIGIBILITY.

          (a) General Rule. Only Employees, Outside Directors and Consultants shall be eligible for the
grant of Nonstatutory Options or the direct award or sale of Shares. Only Employees shall be
eligible for the grant of ISOs.

          (b) Ten-Percent Stockholders. A person who owns more than 10% of the total combined voting
power of all classes of outstanding stock of the Company, its Parent or any of its Subsidiaries
shall not be eligible for designation as an Optionee or Purchaser unless (i) the Exercise Price is
at least 110% of the Fair Market Value of a Share on the date of grant, (ii) the Purchase Price (if
any) is at least 100% of the Fair Market Value of a Share and (iii) in the case of an ISO, such ISO
by its terms is not exercisable after the expiration of five years from the date of grant. For
purposes of this
Subsection (b), in determining stock ownership, the attribution rules of Section 424(d) of the
Code shall be applied.

 

 

SECTION 4. STOCK SUBJECT TO PLAN.

          (a) Basic Limitation. Not more than 8,648,3881 Shares may be issued under the Plan
(subject to Subsection (b) below and Section 8(a)). The number of Shares that are subject to
Options or other rights outstanding at any time under the Plan shall not exceed the number of
Shares that then remain available for issuance under the Plan. The Company, during the term of the
Plan, shall at all times reserve and keep available sufficient Shares to satisfy the requirements
of the Plan. Shares offered under the Plan may be authorized but unissued Shares or treasury
Shares.

          (b) Additional Shares. In the event that Shares previously issued under the Plan are
reacquired by the Company, such Shares shall be added to the number of Shares then available for
issuance under the Plan. In the event that an outstanding Option or other right for any reason
expires or is canceled, the Shares allocable to the unexercised portion of such Option or other
right shall be added to the number of Shares then available for issuance under the Plan.

SECTION 5. TERMS AND CONDITIONS OF AWARDS OR SALES.

          (a) Stock Purchase Agreement. Each award or sale of Shares under the Plan (other than upon
exercise of an Option) shall be evidenced by a Stock Purchase Agreement between the Purchaser and
the Company. Such award or sale shall be subject to all applicable terms and conditions of the
Plan and may be subject to any other terms and conditions which are not inconsistent with the Plan
and which the Board of Directors deems appropriate for inclusion in a Stock Purchase Agreement.
The provisions of the various Stock Purchase Agreements entered into under the Plan need not be
identical.

          (b) Duration of Offers and Nontransferability of Rights. Any right to acquire Shares under
the Plan (other than an Option) shall automatically expire if not exercised by the Purchaser within
30 days after the grant of such right was communicated to the Purchaser by the Company. Such right
shall not be transferable and shall be exercisable only by the Purchaser to whom such right was
granted.

          (c) Purchase Price. The Purchase Price of Shares to be offered under the Plan shall not be
less than 85% of the Fair Market Value of such Shares, and a higher percentage may be required by Section 3(b). Subject to the
preceding sentence, the Board of Directors shall determine the Purchase Price at its sole
discretion. The Purchase Price shall be payable in a form described in Section 7.

          (d) Withholding Taxes. As a condition to the purchase of Shares, the Purchaser shall make
such arrangements as the Board of Directors may require for the satisfaction of any federal, state,
local or foreign withholding tax obligations that may arise in connection with such purchase.

 

			
	1	 	Reflects the 1,461,007 share increase approved by the
Board of Directors on January 21, 2005, the 150,406 share increase approved by
the Board of Directors on November 2, 2005, the 1,114,594 share increase
approved by the Board of Directors on January 12, 2006 and the 1,422,381 share
increase approved by the Board of Directors on December 5, 2006.

2

 

          (e) Restrictions on Transfer of Shares and Minimum Vesting. Any Shares awarded or sold under
the Plan shall be subject to such special forfeiture conditions, rights of repurchase, rights of
first refusal and other transfer restrictions as the Board of Directors may determine. Such
restrictions shall be set forth in the applicable Stock Purchase Agreement and shall apply in
addition to any restrictions that may apply to holders of Shares generally. In the case of a
Purchaser who is not an officer of the Company, an Outside Director or a Consultant:

          (i) Any right to repurchase the Purchaser’s Shares at the original Purchase
Price (if any) upon termination of the Purchaser’s Service shall lapse at least as
rapidly as 20% per year over the five-year period commencing on the date of the
award or sale of the Shares;

          (ii) Any such right may be exercised only for cash or for cancellation of
indebtedness incurred in purchasing the Shares; and

          (iii) Any such right may be exercised only within 90 days after the termination
of the Purchaser’s Service.

SECTION 6. TERMS AND CONDITIONS OF OPTIONS.

          (a) Stock Option Agreement. Each grant of an Option under the Plan shall be evidenced by a
Stock Option Agreement between the Optionee and the Company. The Option shall be subject to all
applicable terms and conditions of the Plan and may be subject to any other terms and conditions
which are not inconsistent with the Plan and which the Board of Directors deems appropriate for
inclusion in a Stock Option Agreement. The provisions of the various Stock Option Agreements
entered into under the Plan need not be identical.

          (b) Number of Shares. Each Stock Option Agreement shall specify the number of Shares that are
subject to the Option and shall provide for the adjustment of such number in accordance with
Section 8. The Stock Option Agreement shall also specify whether the Option is an ISO or a
Nonstatutory Option.

          (c) Exercise Price. Each Stock Option Agreement shall specify the Exercise Price. The
Exercise Price of an ISO shall not be less than 100% of the Fair Market Value of a Share on the
date of grant, and a higher percentage may be
required by Section 3(b). The Exercise Price of a Nonstatutory Option shall not be less than
85% of the Fair Market Value of a Share on the date of grant, and a higher percentage may be
required by Section 3(b). Subject to the preceding two sentences, the Exercise Price under any
Option shall be determined by the Board of Directors at its sole discretion. The Exercise Price
shall be payable in a form described in Section 7.

          (d) Exercisability. Each Stock Option Agreement shall specify the date when all or any
installment of the Option is to become exercisable. No Option shall be exercisable unless the
Optionee has delivered an executed copy of the Stock Option Agreement to the Company. In the case
of an Optionee who is not an officer of the Company, an Outside Director or a Consultant, an Option
shall become exercisable at least as rapidly as 20% per year over the five-year period commencing
on the date of grant. Subject to the preceding sentence, the Board

3

 

of Directors shall determine
the exercisability provisions of the Stock Option Agreement at its sole discretion. All of an
Optionee’s Options shall become exercisable in full if Section 8(b)(iv) applies.

          (e) Basic Term. The Stock Option Agreement shall specify the term of the Option. The term
shall not exceed 10 years from the date of grant, and a shorter term may be required by
Section 3(b). Subject to the preceding sentence, the Board of Directors at its sole discretion
shall determine when an Option is to expire.

          (f) Termination of Service (Except by Death). If an Optionee’s Service terminates for any
reason other than the Optionee’s death, then the Optionee’s Options shall expire on the earliest of
the following occasions:

          (i) The expiration date determined pursuant to Subsection (e) above;

          (ii) The date three months after the termination of the Optionee’s Service for
any reason other than Disability, or such later date as the Board of Directors may
determine; or

          (iii) The date six months after the termination of the Optionee’s Service by
reason of Disability, or such later date as the Board of Directors may determine.

The Optionee may exercise all or part of the Optionee’s Options at any time before the expiration
of such Options under the preceding sentence, but only to the extent that such Options had become
exercisable before the Optionee’s Service terminated (or became exercisable as a result of the
termination) and the underlying Shares had vested before the Optionee’s Service terminated (or
vested as a result of the termination). The balance of such Options shall lapse when the
Optionee’s Service terminates. In the event that the Optionee dies after the termination of the
Optionee’s Service but before the expiration of the Optionee’s Options, all or part of such Options
may be exercised (prior to expiration) by the executors or administrators of the Optionee’s estate
or by any person who has acquired such Options directly from the Optionee by
beneficiary designation, bequest or inheritance, but only to the extent that such Options had
become exercisable before the Optionee’s Service terminated (or became exercisable as a result of
the termination) and the underlying Shares had vested before the Optionee’s Service terminated (or
vested as a result of the termination).

          (g) Leaves of Absence. For purposes of Subsection (f) above, Service shall be deemed to
continue while the Optionee is on a bona fide leave of absence, if such leave was approved by the
Company in writing and if continued crediting of Service for this purpose is expressly required by
the terms of such leave or by applicable law (as determined by the Company).

          (h) Death of Optionee. If an Optionee dies while the Optionee is in Service, then the
Optionee’s Options shall expire on the earlier of the following dates:

4

 

          (i) The expiration date determined pursuant to Subsection (e) above; or

          (ii) The date 12 months after the Optionee’s death, or such later date as the
Board of Directors may determine.

All or part of the Optionee’s Options may be exercised at any time before the expiration of such
Options under the preceding sentence by the executors or administrators of the Optionee’s estate or
by any person who has acquired such Options directly from the Optionee by beneficiary designation,
bequest or inheritance, but only to the extent that such Options had become exercisable before the
Optionee’s death (or became exercisable as a result of the death) and the underlying Shares had
vested before the Optionee’s death (or vested as a result of the Optionee’s death). The balance of
such Options shall lapse when the Optionee dies.

          (i) Restrictions on Transfer of Shares and Minimum Vesting. Any Shares issued upon exercise
of an Option shall be subject to such special forfeiture conditions, rights of repurchase, rights
of first refusal and other transfer restrictions as the Board of Directors may determine. Such
restrictions shall be set forth in the applicable Stock Option Agreement and shall apply in
addition to any restrictions that may apply to holders of Shares generally. In the case of an
Optionee who is not an officer of the Company, an Outside Director or a Consultant:

          (i) Any right to repurchase the Optionee’s Shares at the original Exercise
Price upon termination of the Optionee’s Service shall lapse at least as rapidly as
20% per year over the five-year period commencing on the date of the option grant;

          (ii) Any such right may be exercised only for cash or for cancellation of
indebtedness incurred in purchasing the Shares; and

          (iii) Any such right may be exercised only within 90 days after the later of
(A) the termination of the Optionee’s Service or (B) the date of the option
exercise.

          (j) Transferability of Options. An Option shall be transferable by the Optionee only by (i) a
beneficiary designation, (ii) a will or (iii) the laws of descent and distribution, except as
provided in the next sentence. If the applicable Stock Option Agreement so provides, a
Nonstatutory Option shall also be transferable by gift or domestic relations order to a Family
Member of the Optionee. An ISO may be exercised during the lifetime of the Optionee only by the
Optionee or by the Optionee’s guardian or legal representative.

          (k) Withholding Taxes. As a condition to the exercise of an Option, the Optionee shall make
such arrangements as the Board of Directors may require for the satisfaction of any federal, state,
local or foreign withholding tax obligations that may arise in connection with such exercise. The
Optionee shall also make such arrangements as the Board of Directors may require for the
satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in
connection with the disposition of Shares acquired by exercising an Option.

5

 

          (l) No Rights as a Stockholder. An Optionee, or a transferee of an Optionee, shall have no
rights as a stockholder with respect to any Shares covered by the Optionee’s Option until such
person becomes entitled to receive such Shares by filing a notice of exercise and paying the
Exercise Price pursuant to the terms of such Option.

          (m) Modification, Extension and Assumption of Options. Within the limitations of the Plan,
the Board of Directors may modify, extend or assume outstanding Options or may accept the
cancellation of outstanding Options (whether granted by the Company or another issuer) in return
for the grant of new Options for the same or a different number of Shares and at the same or a
different Exercise Price. The foregoing notwithstanding, no modification of an Option shall,
without the consent of the Optionee, impair the Optionee’s rights or increase the Optionee’s
obligations under such Option.

SECTION 7. PAYMENT FOR SHARES.

          (a) General Rule. The entire Purchase Price or Exercise Price of Shares issued under the Plan
shall be payable in cash or cash equivalents at the time when such Shares are purchased, except as
otherwise provided in this Section 7.

          (b) Surrender of Stock. At the discretion of the Board of Directors, all or any part of the
Exercise Price may be paid by surrendering, or attesting to the ownership of, Shares that are
already owned by the Optionee. Such Shares shall be surrendered to the Company in good form for
transfer and shall be valued at their Fair Market Value on the date when the Option is exercised.
The Optionee shall not surrender, or attest to the ownership of, Shares in payment of the Exercise
Price if such action would cause the Company to recognize compensation expense (or additional
compensation expense) with respect to the Option for financial reporting purposes.

          (c) Services Rendered. At the discretion of the Board of Directors, Shares may be awarded
under the Plan in consideration of services rendered to the Company, a Parent or a Subsidiary prior
to the award.

          (d) Promissory Note. At the discretion of the Board of Directors, all or a portion of the
Exercise Price or Purchase Price (as the case may be) of Shares issued under the Plan may be paid
with a full-recourse promissory note. However, the par value of the Shares, if newly issued, shall
be paid in cash or cash equivalents. The Shares shall be pledged as security for payment of the
principal amount of the promissory note and interest thereon. The interest rate payable under the
terms of the promissory note shall not be less than the minimum rate (if any) required to avoid the
imputation of additional interest under the Code. Subject to the foregoing, the Board of Directors
(at its sole discretion) shall specify the term, interest rate, amortization requirements (if any)
and other provisions of such note.

          (e) Exercise/Sale. To the extent that a Stock Option Agreement so provides, and if Stock is
publicly traded, payment may be made all or in part by the delivery (on a form prescribed by the
Company) of an irrevocable direction to a securities broker approved by the Company to sell Shares
and to deliver all or part of the sales proceeds to the Company in payment of all or part of the
Exercise Price and any withholding taxes.

6

 

          (f) Exercise/Pledge. To the extent that a Stock Option Agreement so provides, and if Stock is
publicly traded, payment may be made all or in part by the delivery (on a form prescribed by the
Company) of an irrevocable direction to pledge Shares to a securities broker or lender approved by
the Company, as security for a loan, and to deliver all or part of the loan proceeds to the Company
in payment of all or part of the Exercise Price and any withholding taxes.

SECTION 8. ADJUSTMENT OF SHARES.

          (a) General. In the event of a subdivision of the outstanding Stock, a declaration of a
dividend payable in Shares or a combination or consolidation of the outstanding Stock into a lesser
number of Shares, corresponding adjustments shall automatically be made in each of (i) the number
of Shares available for future grants under Section 4, (ii) the number of Shares covered by each
outstanding Option and (iii) the Exercise Price under each outstanding Option. In the event of a
declaration of an extraordinary dividend payable in a form other than Shares in an amount that has
a material effect on the Fair Market Value of the Stock, a recapitalization, a spin-off, a
reclassification or a similar occurrence, the Board of Directors at its sole discretion may make
appropriate adjustments in one or more of (i) the number of Shares available for future grants
under Section 4, (ii) the number of Shares covered by each outstanding Option or (iii) the Exercise
Price under each outstanding Option.

          (b) Mergers and Consolidations. In the event that the Company is a party to a merger or
consolidation, all outstanding
Options shall be subject to the agreement of merger or consolidation. Such agreement shall
provide for one or more of the following:

          (i) The continuation of such outstanding Options by the Company (if the Company
is the surviving corporation).

          (ii) The assumption of such outstanding Options by the surviving corporation or
its parent in a manner that complies with Section 424(a) of the Code (whether or not
such Options are ISOs).

          (iii) The substitution by the surviving corporation or its parent of new
options for such outstanding Options in a manner that complies with Section 424(a)
of the Code (whether or not such Options are ISOs).

          (iv) Full exercisability of such outstanding Options and full vesting of the
Shares subject to such Options, followed by the cancellation of such Options. The
full exercisability of such Options and full vesting of the Shares subject to such
Options may be contingent on the closing of such merger or consolidation. The
Optionees shall be able to exercise such Options during a period of not less than
five full business days preceding the closing date of such merger or consolidation,
unless (A) a shorter period is required to permit a timely closing of such merger or
consolidation and (B) such shorter period still offers the Optionees a reasonable
opportunity to exercise such Options. Any exercise of such Options during such
period may be contingent on the closing of such merger or consolidation.

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          (v) The cancellation of such outstanding Options and a payment to the Optionees
equal to the excess of (A) the Fair Market Value of the Shares subject to such
Options (whether or not such Options are then exercisable or such Shares are then
vested) as of the closing date of such merger or consolidation over (B) their
Exercise Price. Such payment shall be made in the form of cash, cash equivalents,
or securities of the surviving corporation or its parent with a Fair Market Value
equal to the required amount. Such payment may be made in installments and may be
deferred until the date or dates when such Options would have become exercisable or
such Shares would have vested. Such payment may be subject to vesting based on the
Optionee’s continuing Service, provided that the vesting schedule shall not be less
favorable to the Optionees than the schedule under which such Options would have
become exercisable or such Shares would have vested. If the Exercise Price of the
Shares subject to such Options exceeds the Fair Market Value of such Shares, then
such Options may be cancelled without making a payment to the Optionees. For
purposes of this Paragraph (v), the Fair Market Value of any security shall be
determined without regard to any vesting conditions that may apply to such security.

          (c) Reservation of Rights. Except as provided in this Section 8, an Optionee or Purchaser
shall have no rights by reason of
(i) any subdivision or consolidation of shares of stock of any class, (ii) the payment of any
dividend or (iii) any other increase or decrease in the number of shares of stock of any class.
Any issuance by the Company of shares of stock of any class, or securities convertible into shares
of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with
respect to, the number or Exercise Price of Shares subject to an Option. The grant of an Option
pursuant to the Plan shall not affect in any way the right or power of the Company to make
adjustments, reclassifications, reorganizations or changes of its capital or business structure, to
merge or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business or
assets.

SECTION 9. SECURITIES LAW REQUIREMENTS.

          (a) General. Shares shall not be issued under the Plan unless the issuance and delivery of
such Shares comply with (or are exempt from) all applicable requirements of law, including (without
limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated
thereunder, state securities laws and regulations, and the regulations of any stock exchange or
other securities market on which the Company’s securities may then be traded.

          (b) Financial Reports. The Company each year shall furnish to Optionees, Purchasers and
stockholders who have received Stock under the Plan its balance sheet and income statement, unless
such Optionees, Purchasers or stockholders are key Employees whose duties with the Company assure
them access to equivalent information. Such balance sheet and income statement need not be
audited.

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SECTION 10. NO RETENTION RIGHTS.

          Nothing in the Plan or in any right or Option granted under the Plan shall confer upon the
Purchaser or Optionee any right to continue in Service for any period of specific duration or
interfere with or otherwise restrict in any way the rights of the Company (or any Parent or
Subsidiary employing or retaining the Purchaser or Optionee) or of the Purchaser or Optionee, which
rights are hereby expressly reserved by each, to terminate his or her Service at any time and for
any reason, with or without cause.

SECTION 11. DURATION AND AMENDMENTS.

          (a) Term of the Plan. The Plan, as set forth herein, shall become effective on the date of
its adoption by the Board of Directors, subject to the approval of the Company’s stockholders. If
the stockholders fail to approve the Plan within 12 months after its adoption by the Board of
Directors, then any grants, exercises or sales that have already occurred under the Plan shall be
rescinded and no additional grants, exercises or sales shall thereafter be made under the Plan.
The Plan shall terminate automatically 10 years after the later of (i) its adoption by the Board of
Directors or (ii) the most recent
increase in the number of Shares reserved under Section 4 that was approved by the Company’s
stockholders. The Plan may be terminated on any earlier date pursuant to Subsection (b) below.

          (b) Right to Amend or Terminate the Plan. The Board of Directors may amend, suspend or
terminate the Plan at any time and for any reason; provided, however, that any amendment of the
Plan shall be subject to the approval of the Company’s stockholders if it (i) increases the number
of Shares available for issuance under the Plan (except as provided in Section 8) or
(ii) materially changes the class of persons who are eligible for the grant of ISOs. Stockholder
approval shall not be required for any other amendment of the Plan. If the stockholders fail to
approve an increase in the number of Shares reserved under Section 4 within 12 months after its
adoption by the Board of Directors, then any grants, exercises or sales that have already occurred
in reliance on such increase shall be rescinded and no additional grants, exercises or sales shall
thereafter be made in reliance on such increase.

          (c) Effect of Amendment or Termination. No Shares shall be issued or sold under the Plan
after the termination thereof, except upon exercise of an Option granted prior to such termination.
The termination of the Plan, or any amendment thereof, shall not affect any Share previously
issued or any Option previously granted under the Plan.

SECTION 12. DEFINITIONS.

          (a) “Board of Directors” shall mean the Board of Directors of the Company, as constituted from
time to time.

          (b) “Code” shall mean the Internal Revenue Code of 1986, as amended.

          (c) “Committee” shall mean a committee of the Board of Directors, as described in
Section 2(a).

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          (d) “Company” shall mean Zimbra, Inc., a Delaware corporation.

          (e) “Consultant” shall mean a person who performs bona fide services for the Company, a Parent
or a Subsidiary as a consultant or advisor, excluding Employees and Outside Directors.

          (f) “Disability” shall mean that the Optionee is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment.

          (g) “Employee” shall mean any individual who is a common-law employee of the Company, a Parent
or a Subsidiary.

          (h) “Exercise Price” shall mean the amount for which one Share may be purchased upon exercise
of an Option, as specified by the Board of Directors in the applicable Stock Option Agreement.

          (i) “Fair Market Value” shall mean the fair market value of a Share, as determined by the
Board of Directors in good faith. Such determination shall be conclusive and binding on all
persons.

          (j) “Family Member” shall mean (i) any child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law or sister-in-law, including adoptive relationships,
(ii) any person sharing the Optionee’s household (other than a tenant or employee), (iii) a trust
in which persons described in Clause (i) or (ii) have more than 50% of the beneficial interest,
(iv) a foundation in which persons described in Clause (i) or (ii) or the Optionee control the
management of assets and (v) any other entity in which persons described in Clause (i) or (ii) or
the Optionee own more than 50% of the voting interests.

          (k) “ISO” shall mean an employee incentive stock option described in Section 422(b) of the
Code.

          (l) “Nonstatutory Option” shall mean a stock option not described in Sections 422(b) or 423(b)
of the Code.

          (m) “Option” shall mean an ISO or Nonstatutory Option granted under the Plan and entitling the
holder to purchase Shares.

          (n) “Optionee” shall mean a person who holds an Option.

          (o) “Outside Director” shall mean a member of the Board of Directors who is not an Employee.

          (p) “Parent” shall mean any corporation (other than the Company) in an unbroken chain of
corporations ending with the Company, if each of the corporations other than the Company owns stock
possessing 50% or more of the total combined voting power of all classes of stock in one of the
other corporations in such chain. A corporation that attains the

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status of a Parent on a date
after the adoption of the Plan shall be considered a Parent commencing as of such date.

          (q) “Plan” shall mean this Zimbra, Inc. 2004 Stock Plan.

          (r) “Purchase Price” shall mean the consideration for which one Share may be acquired under
the Plan (other than upon exercise of an Option), as specified by the Board of Directors.

          (s) “Purchaser” shall mean a person to whom the Board of Directors has offered the right to
acquire Shares under the Plan (other than upon exercise of an Option).

          (t) “Service” shall mean service as an Employee, Outside Director or Consultant.

          (u) “Share” shall mean one share of Stock, as adjusted in accordance with Section 8 (if
applicable).

          (v) “Stock” shall mean the Common Stock of the Company, with a par value of $0.0001 per Share.

          (w) “Stock Option Agreement” shall mean the agreement between the Company and an Optionee that
contains the terms, conditions and restrictions pertaining to the Optionee’s Option.

          (x) “Stock Purchase Agreement” shall mean the agreement between the Company and a Purchaser
who acquires Shares under the Plan that contains the terms, conditions and restrictions pertaining
to the acquisition of such Shares.

          (y) “Subsidiary” shall mean any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company, if each of the corporations other than the last
corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting
power of all classes of stock in one of the other corporations in such chain. A corporation that
attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered a
Subsidiary commencing as of such date.

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