Document:

Stratus Technologies, Inc. Stock Incentive Plan

 Exhibit 10(h) 
  
 Restatement #3 Effective: February 27, 2003 
  
 STRATUS TECHNOLOGIES, INC. 
 STOCK
INCENTIVE PLAN 
 (As Amended and Restated) 
  

Restatement No. 3 
  
 1. Establishment and Purpose of the Plan. This Stock Incentive Plan (the “Plan”) was established by Stratus Technologies, Inc. a
Delaware corporation (the “Company”), formerly Stratus Computer (DE), Inc, as of March 29, 1999. The Plan is designed to enable the Company to attract, retain and motivate directors, officers, employees and consultants of the
Company and its direct and indirect subsidiaries and affiliates by providing for or increasing their proprietary interest in the Company’s indirect stockholder, Stratus Technologies Group, S.A., formerly Stratus Computer Systems International
S.A., a company established under the laws of Luxembourg (“Stratus Holdings”). The Plan provides for the grant of options (“Options”) that qualify as incentive stock options (“Incentive Stock
Options”) under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), as well as Options that do not so qualify (“Non-Qualified Options”) to acquire Shares (as defined below) of Stratus
Holdings, for the grant of stock appreciation rights (“SARs”) with respect to Shares of Stratus Holdings and for the sale or grant of restricted stock (“Restricted Stock”) to purchase Shares of Stratus Holdings.

  
 2. Amendment and Restatement of Prior Plan. This
Restatement No. 3, effective February 27, 2003, authorizes an increase in the maximum number of shares that may be granted as Options or sold as Restricted Stock hereunder from 19,250,000 to 32,530,970. The Plan, initially adopted on March 29, 1999,
was amended for the first time on July 24, 2000, the sole purpose of which was to increase the maximum number of shares that may be granted as Options or sold as Restricted Stock thereunder from 16,000,000 to 19,250,000. Restatement No. 2 reflected
corporate name changes authorized on March 23, 2001: Stratus Computer Systems International S.A. changed its name to Stratus Technologies Group, S.A. and Stratus Computer (DE) changed its name to Stratus Technologies, Inc. 
  
 3. Stock Subject to Plan. 
  
 (a) The number of shares of stock that may be subject to Options or Stock
Appreciation Rights granted hereunder plus the number of shares of stock that may be granted or sold as Restricted Stock hereunder shall not in the aggregate exceed 32,530,970 shares of Stratus Holdings’ ordinary shares, par value $1.50 per
share (the “Shares”), subject to adjustment under Section 14 hereof; provided further that the number of Shares that a Participant (as hereinafter defined) may receive pursuant to the Plan shall in no event exceed 2,000,000 in any
year. The Shares that may be subject to Options granted and Restricted Stock sold or granted under the Plan may be authorized and unissued Shares or Shares reacquired by Stratus Holdings and held as treasury stock. 
  
 (b) Shares that are subject to the unexercised portions of any Options that
expire, terminate or are canceled, and Shares that are subject to any Stock Appreciation Rights 

  

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that expire, terminate or are canceled, and Shares of Restricted Stock that are reacquired by Stratus Holdings pursuant to the restrictions thereon, shall
again be available for the grant of Options or Stock Appreciation Rights and the sale or grant of Restricted Stock under the Plan. If a Stock Appreciation Right is exercised, any Option or portion thereof that is surrendered in connection with such
exercise shall terminate and the Shares theretofore subject to the Option or portion thereof shall not be available for further use under the Plan. 
  
 4. Shares Subject to Drag-Along and Tag-Along Rights. All Shares issuable under Options or Stock Appreciation Rights and all Shares of Restricted
Stock sold or granted pursuant to this Plan shall be subject to the terms and restrictions contained in Exhibit A hereto, which exhibit is hereby incorporated into and made a part of the Plan and each agreement entered into under the Plan. In
addition, a copy of Exhibit A shall be delivered to the recipient of an Option, Stock Appreciation Right or Restricted Stock at the time of grant or issuance. 
  
 5. Administration of the Plan. 
  
 (a) The Plan shall be administered by the Compensation Committee of the Board of Directors (the “Board”) of
the Company or such other committee as appointed by the Board (the “Committee”). If the Board determines that the Compensation Committee should not administer the Plan and if no other persons are designated by the Board to serve on
the Committee, the Plan shall be administered by the Board and all references herein to the Committee shall refer to the Board. The Board shall have the discretion to add, remove or replace members of the Committee, and shall have the sole authority
to fill vacancies on the Committee. 
  
 (b) All actions of the
Committee shall be authorized by a majority vote thereof at a duly called meeting, which meeting may be telephonic if permitted under applicable law, or by written consent of all members of the Committee. The Committee shall have the sole authority,
in its absolute discretion, to adopt, amend, and rescind such rules and regulations as, in its opinion, may be advisable in the administration of the Plan, to construe and interpret the Plan, the rules and regulations thereunder, and the agreements
and other instruments evidencing Options and Stock Appreciation Rights granted and Restricted Stock sold or granted under the Plan, and to make all other determinations deemed necessary or advisable for the administration of the Plan. All decisions,
determinations, and interpretations of the Committee shall be final and conclusive upon the Participants, as hereinafter defined. Notwithstanding the foregoing, a dispute arising under an Agreement (as defined below) shall be resolved pursuant to
any applicable dispute resolution mechanism set forth in such Agreement, if any. 
  
 (c) Subject to the express provisions of the Plan, the Committee shall determine the number of Shares subject to grants or sales and the terms thereof, including the provisions relating to the exercisability of
Options and Stock Appreciation Rights, lapse and non-lapse restrictions upon the Shares obtained or obtainable under the Plan and the termination and/or forfeiture of Options and Stock Appreciation Rights and Restricted Stock under the Plan. The
terms upon which Options and Stock Appreciation Rights are granted and Restricted Stock is sold or granted shall be evidenced by a written agreement, executed by the Company and the Participant (each, an “Agreement”), containing
such terms and conditions as may be approved by 

  

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the Committee; provided that such terms and conditions are consistent with the express terms and conditions of the Plan. 
  
 6. Eligibility. Persons who shall be eligible for grants of Options or
Stock Appreciation Rights or sales or grants of Restricted Stock hereunder shall be those directors, officers, employees and consultants of the Company or a direct or indirect subsidiary or affiliate of the Company that the Committee may from time
to time designate to participate under the Plan (“Participants”) through grants of Non-Qualified Options, Incentive Stock Options, Stock Appreciation Rights, and/or through sales or grants of Restricted Stock. 
  
 7. Terms and Conditions of Options. No Incentive Stock Option shall be
granted for a term of more than ten years and no Non-Qualified Option shall be granted for a term of more than ten years and thirty days. Options may, in the discretion of the Committee, be granted with associated Stock Appreciation Rights or be
amended so as to provide for associated Stock Appreciation Rights. The Agreement may contain such other terms, provisions and conditions as may be determined by the Committee as long as such terms, conditions and provisions are consistent with the
Plan. The Committee shall designate as such those Options intended to be eligible to qualify and be treated as Incentive Stock Options and, correspondingly, those Options not intended to be eligible to qualify and be treated as Incentive Stock
Options. 
  
 8. Exercise Price of Options. 
  
 (a) The exercise price for each Non-Qualified Option granted hereunder shall
be set forth in the Agreement. For so long as required under Section 422 of the Code and the regulations promulgated thereunder (or any successor statute or rules), the exercise price of any Option intended to be eligible to qualify and be treated
as an Incentive Stock Option shall not be less than the fair market value of the Shares on the date such Incentive Stock Option is granted, except that if such Incentive Stock Option is granted to a Participant who on the date of grant is treated
under Section 424(d) of the Code as owning stock (not including stock purchasable under outstanding options) possessing more than ten percent of the total combined voting power of all classes of Stratus Holdings’ stock, the exercise price shall
not be less than one hundred ten percent (110%) of the fair market value of the Shares on the date such Incentive Stock Option is granted. 
  
 (b) Unless provided otherwise in a Participant’s Agreement, the fair market value of Shares for the purposes of this Plan shall be determined by the
Committee, whose valuation shall be binding upon each Participant. 
  
 (c) Payment for Shares purchased upon exercise of any Option granted hereunder shall be in cash, cashier’s check, certified bank check or by wire transfer to the Company or Stratus Holdings, as directed by the Committee, at the time of
exercise, except that, if either the Agreement so provides or the Committee so permits, and if the Company is not then prohibited from doing so, such payment may be made in whole or in part with surrendered or withheld shares of stock of the same
class as the stock then subject to the Option. In addition, the Committee may on an individual basis permit payment or agree to permit payment by such other alternative means as may be lawful, including the delivery of an executed exercise notice

  

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together with irrevocable instructions to a broker promptly to deliver to the Company or Stratus Holdings the amount of sale or loan proceeds required to pay
the exercise price. 
  
 9. Non-transferability. Unless
provided otherwise in the Participant’s Agreement, any Option granted under this Plan shall, by its terms, be nontransferable by the Participant other than by will or the laws of descent and distribution (in which case such descendant or
beneficiary shall be subject to all terms of the Plan applicable to the Participant), and is exercisable during the Participant’s lifetime only by the Participant or by the Participant’s guardian or legal representative. 
  
 10. Incentive Stock Options. The provisions of the Plan are intended
to satisfy the requirements set forth in Section 422 of the Code and the regulations promulgated thereunder (including the aggregate fair market value limits set forth in Section 422(d) of the Code) with respect to Incentive Stock Options granted
under the Plan. For so long as required under Section 422 of the Code and the regulations promulgated thereunder (or any successor statute or rules), during the term of the Plan, the aggregate fair market value of the Shares with respect to which
Incentive Stock Options are first exercisable by a Participant during any calendar year shall not exceed $100,000. For the purpose of this Section 10, the fair market value of the Shares shall be determined at the time the Incentive Stock Option is
granted. 
  
 11. Stock Appreciation Rights. The Committee
may, under such terms and conditions as it deems appropriate, grant to any Participant selected by the Committee Stock Appreciation Rights, which may or may not be associated with Options. Upon exercise of a Stock Appreciation Right, the Participant
shall be entitled to receive payment of an amount equal to the excess of the fair market value, as defined by the Committee, of the underlying Shares on the date of exercise over the Stock Appreciation Right’s exercise price. Such payment may
be made in additional Shares valued at their fair market value on the date of exercise or in cash, or partly in Shares and partly in cash, as the Committee may designate. The Committee may require that any Stock Appreciation Right shall be subject
to the condition that the Committee may at any time in its absolute discretion not allow the exercise of such Stock Appreciation Right. 
  
 12. Restricted Stock. The Committee may sell or grant Restricted Stock under the Plan (either independently or in connection with the exercise of
Options or Stock Appreciation Rights under the Plan) to Participants selected by the Committee. The Committee shall in each case determine the number of Shares of Restricted Stock to be sold or granted, the price at which such Shares are sold, if
applicable, and the terms and duration of the restrictions to be imposed upon those Shares. 
  
 13. Investment Representation. Each Agreement may contain an agreement that, upon demand by the Committee for such a representation, the Participant shall deliver to the Committee at the time of any exercise of
an Option a written representation that the Shares to be acquired upon such exercise are to be acquired for investment and not for resale or with a view to the distribution thereof. Upon such demand, delivery of such representation prior to the
delivery of any Shares issued upon exercise of an Option and prior to the expiration of the option period shall be a condition precedent to the right of the Participant or such other person to purchase any Shares. 
  

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 14. Adjustments. 
  
 (a) If at any time the securities of the class(es) then subject to this Plan are changed into, or such outstanding
securities are exchanged for, a different number or kind of shares or securities, as the result of any one or more reorganizations, recapitalizations, stock splits, reverse stock splits, stock dividends or similar events, an appropriate adjustment
shall be made in the number, exercise or sale price and/or type of shares or securities for which Options and Stock Appreciation Rights may thereafter be granted and Restricted Stock may be sold or granted under the Plan. The Committee also shall
designate the appropriate changes that shall be made in Options and Stock Appreciation Rights and rights to purchase Restricted Stock under the Plan, and the Committee may do so either at the time the Option, Stock Appreciation Right or right to
purchase Restricted Stock is granted or sold, or at the time of the event causing the adjustment. Any such adjustment in outstanding Options shall be made without changing the aggregate exercise price applicable to the unexercised portions of such
Options. Any such adjustment in rights to purchase Restricted Stock shall be made without changing the aggregate purchase price of such Restricted Stock. 
  
 (b) Notwithstanding Section 14(a), no right to purchase fractional Shares or fractions of other securities shall result from any adjustment pursuant to
this Section. In case of any such adjustment, the Shares or other securities subject to the Option or right to purchase Restricted Stock shall be rounded down to the nearest whole Share or other security, as the case maybe. 
  
 15. Duration of Plan. Options may not be granted and Restricted Stock
may not be sold or granted under the Plan after March 1, 2009. 
  
 16. Amendment and Termination of the Plan. 
  
 (a)
The Board may at any time amend, suspend or terminate the Plan. The Committee may amend the Plan or any Agreement issued hereunder to the extent necessary for any Option or Stock Appreciation Right granted or Restricted Stock sold or granted under
the Plan to comply with applicable tax or securities laws. 
  
 (b)
No Option or Stock Appreciation Right may be granted or Restricted Stock sold or granted during any suspension of the Plan or after the termination of the Plan. No amendment, suspension or termination of the Plan or of any Agreement issued hereunder
shall, without the consent of the affected holder of such Option or Stock Appreciation Right or Restricted Stock, adversely alter or otherwise impair any rights or obligations in any outstanding Option or Stock Appreciation Right or Restricted Stock
granted or sold to such holder under the Plan. 
  
 17. Nature
of Plan. This Plan is intended to qualify as a compensatory benefit plan within the meaning of Rule 701 under the Securities Act of 1933. 
  
 18. Cancellation of Options or SARs. Any Option or SAR granted under the Plan may be canceled at any time with the consent of the holder and a new
Option or SAR may be granted to such holder in lieu thereof. 
  

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 19. Withholding Taxes. Whenever Shares are to be issued with respect to the exercise of Options or
amounts are to be paid or income earned with respect to Stock Appreciation Rights or Restricted Stock under the Plan, the Committee in its discretion may require the Participant to remit to the Company, prior to the delivery of any certificate or
certificates for such Shares or the payment of any such amounts, all or any part of the amount determined in the Committee’s discretion to be sufficient to satisfy federal, state and/or local withholding tax obligations (the
“Withholding Obligation”) that the Company or its counsel determines may arise with respect to such exercise, issuance or payment. Pursuant to a procedure established by the Committee or as set forth in the Agreement, the
Participant may (a) request the Company to withhold delivery of a sufficient number of Shares or a sufficient amount of the Participant’s compensation or (b) deliver a sufficient number of previously-issued Shares, to satisfy the Withholding
Obligation. 
  

 6Management Stock Option Agreement

 EXHIBIT 10(i) 
  
 EMPLOYEE STOCK OPTION AGREEMENT 
 PURSUANT TO THE 
 STRATUS TECHNOLOGIES, INC. STOCK INCENTIVE PLAN 
  
 THIS STOCK OPTION AGREEMENT (this “Agreement”) is made as of
«Option_Date» (the “Grant Date”), between Stratus Technologies Inc., a Delaware corporation (the “Company”), Stratus Technologies Group, S.A., a company organized under the laws of Luxembourg, and
«FName» «LName» (the “Optionee”). 
  
 R  E  C  I  T  A  L  S 
  
 A. The Company has adopted the Stratus Technologies, Inc. Stock Incentive Plan (the “Plan”), a copy of
which has been delivered to Optionee. 
  
 B. The Plan and the form
of this Agreement have been approved by the Company’s indirect stockholder, Stratus Technologies Group, S.A., a company organized under the laws of Luxembourg. 
  
 C. Whereas the Plan provides for the grant, at the discretion of the Committee (as defined in the Plan), of options to
acquire a proprietary interest in Stratus Holdings (as defined below) as a means of attracting, retaining and motivating directors, officers, employees and consultants of the Company and its direct and indirect subsidiaries and affiliates.

  
 D. The Company desires to grant the Optionee the opportunity
to acquire a proprietary interest in Stratus Holdings in order to encourage the Optionee’s contribution to the success and progress of Stratus Group (as defined below). 
  
 E. The Optionee has entered into a confidentiality agreement with the Company. 
  
 F. In accordance with the Plan, the Committee has as of the Grant Date
authorized the grant to the Optionee of a non-qualified stock option to purchase the number of ordinary shares, $1.50 par value, of Stratus Holdings (the “Shares”) set forth in Section 2 hereof, subject to the terms and conditions
of the Plan and this Agreement. 
  
 AGREEMENTS 

 
 1. Definitions. Capitalized terms used herein shall have the
following meanings: 
  
 “Act” has the meaning
set forth in Section 10(a). 
  
 “Affiliate”
means, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under direct or indirect common control with, such Person. A Person will be deemed to control a corporation if such Person possesses, directly
or indirectly, the power to direct or cause the direction of the management and policies of such corporation, whether through the ownership of voting securities, by contract or otherwise. 
  
 “Agreement” means this Stock Option Agreement. 

 “Annual Valuation” has the meaning set forth in Section 9(c). 
  
 “Approved Sale” means a transaction or a series of related
transactions which results in a bona fide, unaffiliated change of economic beneficial ownership of the Stratus Group or its business of greater than 50%, whether pursuant to the sale of the stock of Stratus Holdings, the sale of the
assets of Stratus Group (if combined with a distribution of net proceeds to stockholders), or a merger or consolidation (other than a sale of stock by an Investcorp Investor to another Investcorp Investor or in connection with a Consolidation
Transaction). 
  
 “Board” means the Board of
Directors of the Company. 
  
 “Cause,” when used
in connection with a termination of employment of the Optionee, means (a) conviction of the Optionee for a felony, or the entry by the Optionee of a plea of guilty or nolo contendere to a felony, (b) the commission of an act of fraud
involving dishonesty for personal gain which is injurious to Stratus Holdings, the Company or a Subsidiary, (c) the willful and continued refusal by the Optionee to substantially perform his duties with the Company or a Subsidiary (other than any
such refusal resulting from his incapacity due to mental illness or physical illness or injury), after a demand for substantial performance is delivered to the Optionee by the Company’s or Subsidiary’s Board or by the Optionee’s
supervisor, where such demand identifies the manner in which the Company’s or Subsidiary’s Board such Board or supervisor believes that the Optionee has refused to substantially perform his duties and the passage of a reasonable period of
time as specified by such Board or supervisor for the Optionee to comply with such demand or (d) the willful engaging by the Optionee in gross misconduct injurious to Stratus Holdings, the Company or a Subsidiary. 
  
 “Company” has the meaning set forth in the Preamble.

  
 “Committee” has the meaning set forth in the
Plan. 
  
 “Consolidation Transaction” means a
transaction or series of related transactions (including mergers, reorganizations, liquidations, share exchanges and/or consolidations involving Stratus Holdings and one or more of its direct and indirect wholly owned subsidiaries) effected to
implement a reorganization of Stratus Holdings (and one or more of such subsidiaries) (or similar transactions) that does not result in a material change in beneficial ownership of the voting securities of Stratus Holdings or its successor.

  
 “Disability” means the failure by the
Optionee to render full-time employment services to the Company or a Subsidiary for a continuous six (6) month period as a result of physical or mental disability. 
  
 “Endorsed Certificate” has the meaning set forth in Section 9(a). 
  
 “Exercise Price” has the meaning set forth in Section 2.

  
 “Fair Market Value” means the value of a
Share calculated pursuant to Section 9(c). 
  
 “Grant
Date” has the meaning set forth in the Preamble. 
  

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 “Group Board” has the meaning set forth in Section 9(c). 
  
 “Initial Public Offering” means the sale of any of the
Shares pursuant to a registration statement that has been declared effective under the Act, if as a result of such sale (i) Stratus Holdings becomes a reporting company under Section 12(b) or 12(g) of the Exchange Act, and (ii) such stock is traded
on the New York Stock Exchange or the American Stock Exchange, or is quoted on the Nasdaq National Market System or is traded or quoted on any other national stock exchange or national securities system. 
  
 “Investcorp Investors” at any date of determination, means
all of the following who are then holders of Shares: Investcorp Bank E.C. and its Affiliates and any other investor with whom Investcorp Bank E.C. or any Affiliate thereof has an administrative relationship. 
  
 “Option” has the meaning set forth in Section 2. 

 
 “Optionee” has the meaning set forth in the Preamble.

  
 “Option Shares” has the meaning set forth in
Section 2. 
  
 “Person” means an individual,
partnership, joint venture, limited liability company, corporation, trust, unincorporated organization or a government or any department or agency thereof. 
  
 “Plan” has the meaning set forth in Recital A. 
  

“Repurchase Date” has the meaning set forth in Section 9(a). 
  
 “Repurchase Period” has the meaning set forth in Section 9(a). 
  
 “Repurchase Right” has the meaning set forth in Section
9(a). 
  
 “Shares” has the meaning set forth in
Recital F. 
  
 “Stratus Group” means Stratus
Holdings together with its direct and indirect Subsidiaries. 
  
 “Stratus Holdings” means Stratus Technologies Group, S.A., or a successor thereto, including without limitation a successor in a Consolidation Transaction. 
  
 “Subsidiary” means any corporation, partnership or other entity as to which Stratus Holdings, whether
directly or indirectly, has more than 50% of the (i) voting rights or (ii) rights to capital or profits. 
  
 “Termination Date” means the date on which the Optionee ceases to be employed by the Stratus Group for any reason, as determined by the
Committee. 
  
 2. Grant of Option. The Company grants to
the Optionee the right and option (the “Option”) to purchase, on the terms and conditions hereinafter set forth, «Shares_» Shares (the “Option Shares”), at the purchase price of
$«Price_» per Share (the “Exercise Price”). 
  

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 3. Vesting 
  
 (a) Ordinary Vesting. Except as provided in Section 3(b), Option Shares shall vest at the rate of Twenty-five percent
(25%) per annum each of the first four anniversary dates of the Grant Date provided that the Optionee remains continuously employed by the Stratus Group through each applicable anniversary date. 
  
 (b) Death. Upon the death of the Optionee, 30% of the unvested portion
of the Option held by Optionee at the time of Optionee’s death shall become vested. 
  
 4. Expiration. 
  
 (a)
Subject to Sections 4(b) and 6, any vested but unexercised portion of the Option shall expire upon the tenth (10th)
anniversary of the Grant Date or such earlier date as set forth below: 
  
 (i) if the Optionee resigns from the Company or a Subsidiary, as applicable, for any reason, (and the Optionee is not employed by any other company in the Stratus Group) the vested portion of the Option shall expire
thirty (30) days following the Termination Date; 
  
 (ii) if the
Optionee is terminated for Cause from employment by the Company or a Subsidiary, as applicable, (and the Optionee is not employed by any other company in the Stratus Group) the vested portion of the Option shall expire on the Termination Date;

  
 (iii) if the Optionee is terminated as an employee of the
Company or a Subsidiary, as applicable, without Cause, (and the Optionee is not employed by any other company in the Stratus Group) the vested portion of the Option shall expire thirty (30) days following the Termination Date; and 
  
 (iv) if the Optionee dies or is terminated due to Disability, the vested
portion of any Option shall expire one (1) year following the Optionee’s death or the Termination Date, as the case may be. 
  
 (b) The unvested portion of the Option shall expire on the earlier to occur of (i) the Termination Date or (ii) except to the extent provided in Section 6
hereof, an Approved Sale. 
  
 5. Nontransferability. The
Option shall not be transferable by the Optionee except by will or the laws of descent and distribution (in which case this Agreement shall be binding upon and enforceable against such descendant or beneficiary). Any assignment, transfer, pledge,
hypothecation or other disposition of the Option contrary to the provisions hereof, and the levy of any attachment or similar process upon the Option that would otherwise effect a change in the ownership of the Option, shall terminate the Option;
provided, however, that in the case of the involuntary levy or any attachment or similar involuntary process upon the Option, the Optionee shall have thirty (30) days after notice thereof to cure such levy or process before the Option terminates.
The Optionee may deliver to the Company an executed beneficiary designation form (which beneficiary may be changed by subsequently delivering another executed beneficiary form); provided, however, that if the Optionee fails to deliver
an executed beneficiary form, the beneficiary listed in the Optionee’s life insurance policy with his or her employer shall be his or her beneficiary under this Agreement. A designation of beneficiary form is attached as Exhibit B
hereto. 
  

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 6. Effect of Approved Sale. In the event of an Approved Sale, unless otherwise provided in the
agreement or plan of merger effecting such Approved Sale, the Option shall terminate upon such Approved Sale, provided that, to the extent the Option will be vested in the Approved Sale pursuant to Section 3 hereof, the Optionee shall be given at
least thirty (30) days’ prior notice of the Approved Sale and shall be entitled to exercise such vested portion of the Option at any time during such thirty (30) day period up to and until the close of business on the day immediately preceding
the date of consummation of such Approved Sale and, upon exercise of the Option, the Option Shares shall be treated in the same manner as the Shares of any other holder of Shares. 
  
 7. Exercise of the Option. Subject to Section 10 hereof, prior to the expiration thereof, the Optionee may exercise
the vested portion of the Option from time to time in whole or in part. Upon electing to exercise the Option, the Optionee shall deliver to the Chief Financial Officer of the Company (or his or her designee) a written and signed notice of such
election setting forth the number of Option Shares the Optionee has elected to purchase, together with cash or a cashier’s or certified bank check (fees prepaid) paid to the order of Stratus Holdings (or as otherwise instructed by the
Committee) for the full Exercise Price of such Option Shares and any amount required pursuant to Section 17 hereof. The Committee may, in its discretion, permit payment of the Exercise Price in such other form or in such manner as may be permissible
under the Plan and under any applicable law. 
  
 8.
Restrictions on Transfers of Shares Issuable Upon Exercise. 
  
 (a) Subject to Section 9 hereof, prior to 180 days following an Initial Public Offering, the Option Shares shall not be transferable or transferred, assigned, pledged or hypothecated in any way (whether by operation of law or otherwise)
except that the Option Shares may be transferred as set forth in Section 6 of this Agreement. This Agreement shall be binding on and enforceable against any transferee of the Option Shares. The stock certificates issued to evidence Option Shares
upon exercise of the Option hereunder shall bear a legend referring to this Agreement and the restrictions contained herein. 
  
 (b) If requested in writing by the underwriters for an underwritten public offering of common stock of Stratus Holdings, the Optionee shall agree not to
sell or transfer any Option Shares (other than Option Shares being registered in such offering), without the consent of such underwriters, for a period of at least (a) 180 days following the effective date of the registration statement relating to
the Initial Public Offering, and (b) 90 days following the effective date of the registration statement relating to any other underwritten public offering. 
  
 9. Repurchase of Option Shares. 
  
 (a) Subject to Section 9(b), in the event that the Optionee ceases to be employed by the Stratus Group prior to an Initial Public Offering or an Approved
Sale, the Company, during the sixty (60) day period following the Optionee’s Termination Date (the “Repurchase Period”), shall have a one-time right to purchase all, but not less than all, of the Option Shares which have been

  

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beneficially owned by the Optionee for a period of at least six (6) months (the “Repurchase Right”). This Repurchase Right shall be freely
assignable by the Company to an Affiliate of the Company or to Investcorp Bank E.C. and its Affiliates or any other entity with whom Investcorp E.C. or any Affiliate thereof has an administrative relationship. The purchase price for each Option
Share shall equal Fair Market Value, or, if the Optionee is terminated for Cause, the lower of Fair Market Value and the Exercise Price. If the Company elects to purchase the Option Shares, it shall notify the Optionee at or before the end of the
Repurchase Period of such election and the purchase price shall be paid in cash at a time set by the Company (the “Repurchase Date”) within thirty (30) days after the end of the Repurchase Period, provided that the Optionee has
presented to the Company a stock certificate evidencing the Option Shares duly endorsed for transfer (the “Endorsed Certificate”). If the Optionee fails to deliver the Endorsed Certificate, the Option Shares represented thereby
shall be deemed to have been purchased upon (i) the payment by the Company of the purchase price to the Optionee or his or her beneficiary or descendant or (ii) notice to the Optionee or such beneficiary or descendant that the Company is holding the
purchase price for the account of the Optionee or such beneficiary or descendant, and upon such payment or notice the Optionee and such beneficiary or descendant will have no further rights in or to such Option Shares. If the Company does not
purchase the Option Shares, the restrictions on transfer thereof contained in Sections 5 and 8 of this Agreement shall terminate and be of no further force and effect. 
  
 (b) In the event that, on the Termination Date, Option Shares have not been beneficially owned by the Optionee for a period
of at least six (6) months, the sixty (60) day Repurchase Period described in Section 9(a) for such Option Shares shall commence on the day immediately following the six (6) month anniversary of the Optionee’s acquisition of such Option Shares.
In the event that, following the Termination Date, the Optionee exercises an outstanding vested Option pursuant to this Agreement, the sixty (60) day Repurchase Period described in Section 10(a) for such Option Shares shall commence on the day
immediately following the six (6) month anniversary of the Optionee’s acquisition of such Option Shares. 
  
 (c) The Fair Market Value of Option Shares to be purchased by the Company pursuant to Section 9 shall be determined in good faith by the Board of
Directors of Stratus Holdings (or a committee thereof appointed by such Board) (the “Group Board”). The Group Board shall make its determination of Fair Market Value annually (the “Annual Valuation”) within thirty
(30) days following the completion of the Stratus Group’s audited financial statements for the year then completed and such determination shall remain in effect until the Group Board makes the next Annual Valuation. Notwithstanding the
foregoing, if the Group Board or an investment banker or appraiser appointed by Stratus Holdings makes a determination of Fair Market Value subsequent to an Annual Valuation, such subsequent determination shall supersede the Annual Valuation then in
effect and shall establish the Fair Market Value until the next Annual Valuation. The Fair Market Value shall be based on an assumed sale of 100% of the outstanding capital stock of Stratus Holdings (without reduction for minority interest or lack
of liquidity of the Option Shares or similar discount). If such determination of the Fair Market Value is challenged by the Optionee, a mutually acceptable investment banker or appraiser shall establish the Fair Market Value as of the date of
valuation referenced in the Annual Valuation or a subsequent determination. The investment banker’s or appraiser’s determination shall be conclusive and binding on Stratus Holdings and the Optionee. Upon request by the Optionee, Stratus
Holdings shall make available to the Optionee a description of the methodology employed by the investment banker or appraiser in making the determination of Fair Market Value, which description shall include, to the extent relevant, a listing of
companies used in comparing market and transaction valuations, the range of multiples applied, 
  

 6 

 and the terminal valuation, discount factor and multiples used in any discounted cash flow analysis. Stratus Holdings
shall bear all costs incurred in connection with the services of such investment banker or appraiser unless (i) the Fair Market Value established by such investment banker or appraiser is less than or equal to 120% but more than 110% of the
determination challenged by the Optionee, in which case the Optionee shall promptly pay or reimburse Stratus Holdings fifty percent (50%) for such costs, or (ii) the Fair Market Value established by such investment banker or appraiser is equal to or
less than 110% of the determination challenged by the Optionee, in which case the Optionee shall promptly pay or reimburse Stratus Holdings for one hundred percent (100%) of such costs. If the Optionee and Stratus Holdings cannot agree upon an
investment banker or appraiser, they shall each choose an investment banker or appraiser and the two shall choose a third investment banker or appraiser who shall establish the Fair Market Value. 
  
 (d) The Optionee shall not be considered to have ceased to be employed by the
Company or a Subsidiary for purposes of this Agreement if he or she continues to be employed by any entity in the Stratus Group. 
  
 10. Compliance with Legal Requirements. 
  
 (a) No Option Shares shall be issued or transferred pursuant to this Agreement unless and until all legal requirements applicable to such issuance or
transfer have, in the opinion of counsel to Stratus Holdings and the Company, been satisfied. Such requirements may include, but are not limited to, registering or qualifying such Shares under any state or federal law, satisfying any applicable law
relating to the transfer of unregistered securities or demonstrating the availability of an exemption from applicable laws, placing a legend on the Shares to the effect that they were issued in reliance upon an exemption from registration under the
Securities Act of 1933, as amended (the “Act”), and may not be transferred other than in reliance upon Rule 144 or Rule 701 promulgated under the Act, if available, or upon another exemption from the Act, or obtaining the consent or
approval of any governmental regulatory body. 
  
 (b) The Optionee
understands that the Company and Stratus Holdings intend for the offering and sale of Option Shares to be effected in reliance upon Rule 701 or another available exemption from registration under the Act and intends to file a Form 701 as
appropriate, and that neither the Company nor Stratus Holdings is under any obligation to register for resale the Option Shares issued upon exercise of the Option. In connection with any such issuance or any proposed transfer of Option Shares, the
person acquiring the Option Shares shall, if requested by the Company or Stratus Holdings, provide information and assurances satisfactory to counsel to the Company and Stratus Holdings with respect to such matters as the Company and Stratus
Holdings reasonably may deem desirable to assure compliance with all applicable legal requirements. 
  
 11. Subject to Drag-Along and Tag-Along Rights. All Option Shares shall be subject to the provisions set forth on Exhibit A attached hereto
and hereby incorporated by reference herein. 
  
 12. No
Interest in Shares Subject to Option. Neither the Optionee (individually or as a member of a group) nor any beneficiary, descendant or other person claiming under or through the Optionee shall have any right, title, interest, or privilege in or
to any shares of stock allocated or reserved for the purpose of the Plan or subject to this Agreement except as to such Option Shares, if any, as shall have been issued to such person upon exercise of an Option or any part thereof. 
  

 7 

 13. Plan Controls. The Option hereby granted is subject to, and the Company and the Optionee agree
to be bound by, all of the terms and conditions of the Plan as the same may be amended from time to time in accordance with the terms thereof, but no such amendment shall be effective as to the Option (except to the extent necessary for the Option
to comply with applicable tax or securities laws) without the Optionee’s consent insofar as it may adversely affect the Optionee’s rights under this Agreement. 
  
 14. Not an Employment Contract. Nothing in the Plan, in this Agreement or any other instrument executed pursuant
thereto shall confer upon the Optionee any right to continue in the employ of the Company or any Subsidiary or shall affect the right of the Company or any Subsidiary to terminate the employment of the Optionee with or without Cause. 
  
 15. Not an Entitlement. Nothing in the Plan, in this Agreement or any
other instrument executed pursuant thereto shall confer upon the Optionee any future right or entitlement to additional grants under this Plan or any other Plans the Stratus Group might adopt in the future. 
  
 16. Governing Law. All terms of and rights under this Agreement shall
be governed by and construed in accordance with the internal laws of New York, without giving effect to principles of conflicts of law. 
  
 17. Taxes. The Committee may, in its discretion, make such provisions and take such steps as it may deem necessary or appropriate for the
withholding of all federal, state, local and other taxes required by law to be withheld with respect to the issuance or exercise of the Option including, but not limited to, deducting the amount of any such withholding taxes from any other amount
then or thereafter payable to the Optionee, requiring the Optionee to pay to the Company the amount required to be withheld or to execute such documents as the Committee deems necessary or desirable to enable it to satisfy its withholding
obligations, or any other means provided in the Plan. 
  
 18.
Notices. All notices, requests, demands and other communications pursuant to this Agreement shall be in writing and shall be deemed to have been duly given if personally delivered, telexed or telecopied to, or, if mailed, when received by,
the other party at the following addresses (or at such other address as shall be given in writing by either party to the other): 
  
 If to the Company to: 
  
 Stratus Technologies, Inc. 
 111 Powdermill Road 
 Maynard, Massachusetts 01754 
 Attention: Chief Financial Officer 
  
 If to the Optionee to the address currently on file in the Company’s records. 
  
 19. Amendments and Waivers. This Agreement may be amended, and any provision hereof may be waived, only by a written
statement signed by the party to be charged. 
  
 20. Entire
Agreement. This Agreement, together with the Plan, sets forth the entire agreement and understanding between the parties as to the subject matter hereof and supersedes all prior oral and written and all contemporaneous oral discussions,
agreements and understandings of any kind or nature. 
  

 8 

 21. Separability. In the event that any provision of this Agreement is declared to be illegal,
invalid or otherwise unenforceable by a court of competent jurisdiction, such provision shall be reformed, if possible, to the extent necessary to render it legal, valid and enforceable, or otherwise deleted, and the remainder of this Agreement
shall not be affected except to the extent necessary to reform or delete such illegal, invalid or unenforceable provision. 
  
 22. Headings. The headings preceding the text of the sections hereof are inserted solely for convenience of reference, and shall not constitute a
part of this Agreement, nor shall they affect its meaning, construction or effect. 
  
 23. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but which together shall constitute one and the same instrument. 
  
 24. Further Assurances. Each party shall cooperate and take such
action as may be reasonably requested by another party in order to carry out the provisions and purposes of this Agreement. 
  
 25. Remedies. In the event of a breach by any party to this Agreement of its obligations under this Agreement, any party injured by such breach, in
addition to being entitled to exercise all rights granted by law, including recovery of damages, shall be entitled to specific performance of its rights under this Agreement. The parties agree that the provisions of this Agreement shall be
specifically enforceable, it being agreed by the parties that the remedy at law, including monetary damages, for breach of any such provision will be inadequate compensation for any loss and that any defense in any action for specific performance
that a remedy at law would be adequate is hereby waived. 
  
 26.
Binding Effect. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective permitted successors and assigns. 
  

 9 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the Grant Date. 
  

			
	 STRATUS TECHNOLOGIES, INC.

		
	 By:
	 	  

	 Name:
	 	 Robert C. Laufer

	 Title:
	 	 Chief Financial Officer

	
	 OPTIONEE

	
	  

	«FName» «LName»
	 Employee ID# «ID»

  

			
	 Acknowledged and Agreed to by:

	 STRATUS TECHNOLOGIES GROUP, S.A.

		
	 By:
	 	  

	 	 	 Authorized Representative

  

 10

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