Document:

Cisco Systems, Inc. 2005  Stock Incentive Plan

 EXHIBIT 10.3 
  
 CISCO SYSTEMS, INC. 
  
 2005 STOCK INCENTIVE PLAN 
  
 EFFECTIVE AS OF NOVEMBER 15, 2005 

 TABLE OF CONTENTS 
  

							
	 	 	 	 	 	  	Page

	 SECTION 1.
	 	 	 	INTRODUCTION	  	1
				
	 SECTION 2.
	 	 	 	DEFINITIONS	  	1
				
	 	 	(a)	 	 “Affiliate”
	  	1
				
	 	 	(b)	 	 “Award”
	  	1
				
	 	 	(c)	 	 “Board”
	  	1
				
	 	 	(d)	 	 “Cashless Exercise”
	  	1
				
	 	 	(e)	 	 “Cause”
	  	1
				
	 	 	(f)	 	 “Change In Control”
	  	2
				
	 	 	(g)	 	 “Code”
	  	2
				
	 	 	(h)	 	 “Committee”
	  	2
				
	 	 	(i)	 	 “Common Stock”
	  	2
				
	 	 	(j)	 	 “Company”
	  	2
				
	 	 	(k)	 	 “Consultant”
	  	2
				
	 	 	(l)	 	 “Corporate Transaction”
	  	2
				
	 	 	(m)	 	 “Covered Employees”
	  	3
				
	 	 	(n)	 	 “Director”
	  	3
				
	 	 	(o)	 	 “Disability”
	  	3
				
	 	 	(p)	 	 “Employee”
	  	3
				
	 	 	(q)	 	 “Exchange Act”
	  	3
				
	 	 	(r)	 	 “Exercise Price”
	  	3
				
	 	 	(s)	 	 “Fair Market Value”
	  	3
				
	 	 	(t)	 	 “Fiscal Year”
	  	4
				
	 	 	(u)	 	 “Grant”
	  	4
				
	 	 	(v)	 	 “Incentive Stock Option” or “ISO”
	  	4
				
	 	 	(w)	 	 “Key Employee”
	  	4
				
	 	 	(x)	 	 “Non-Employee Director”
	  	4
				
	 	 	(y)	 	 “Nonstatutory Stock Option” or “NSO”
	  	4
				
	 	 	(z)	 	 “Option”
	  	4
				
	 	 	(aa)	 	 “Optionee”
	  	4
				
	 	 	(bb)	 	 “Parent”
	  	4

  

 -i- 

 TABLE OF CONTENTS 
  

							
	 	 	 	  	 	  	Page

				
	 	 	(cc)	  	 “Participant”
	  	4
				
	 	 	(dd)	  	 “Performance Goals”
	  	4
				
	 	 	(ee)	  	 “Performance Period”
	  	5
				
	 	 	(ff)	  	 “Plan”
	  	5
				
	 	 	(gg)	  	 “Re-Price”
	  	5
				
	 	 	(hh)	  	 “SAR Agreement”
	  	5
				
	 	 	(ii)	  	 “SEC”
	  	5
				
	 	 	(jj)	  	 “Section 16 Persons”
	  	5
				
	 	 	(kk)	  	 “Securities Act”
	  	5
				
	 	 	(ll)	  	 “Service”
	  	5
				
	 	 	(mm)	  	 “Share”
	  	6
				
	 	 	(nn)	  	 “Stock Appreciation Right” or “SAR”
	  	6
				
	 	 	(oo)	  	 “Stock Grant”
	  	6
				
	 	 	(pp)	  	 “Stock Grant Agreement”
	  	6
				
	 	 	(qq)	  	 “Stock Option Agreement”
	  	6
				
	 	 	(rr)	  	 “Stock Unit”
	  	6
				
	 	 	(ss)	  	 “Stock Unit Agreement”
	  	6
				
	 	 	(tt)	  	 “Subsidiary”
	  	6
				
	 	 	(uu)	  	 “10-Percent Shareholder”
	  	6
				
	SECTION 3.	 	 	  	ADMINISTRATION	  	6
				
	 	 	(a)	  	 Committee Composition
	  	6
				
	 	 	(b)	  	 Authority of the Committee
	  	7
				
	 	 	(c)	  	 Indemnification
	  	7
				
	SECTION 4.	 	 	  	GENERAL	  	8
				
	 	 	(a)	  	 General Eligibility
	  	8
				
	 	 	(b)	  	 Incentive Stock Options
	  	8
				
	 	 	(c)	  	 Restrictions on Shares
	  	8
				
	 	 	(d)	  	 Beneficiaries
	  	8
				
	 	 	(e)	  	 Performance Conditions
	  	8
				
	 	 	(f)	  	 No Rights as a Shareholder
	  	9
				
	 	 	(g)	  	 Termination of Service
	  	9

  

 ii 

 TABLE OF CONTENTS 
  

							
	 	 	 	  	 	  	Page

	 	 	(h)	  	 Director Fees
	  	9
				
	 SECTION 5.
	 	 	  	SHARES SUBJECT TO PLAN AND SHARE LIMITS	  	10
				
	 	 	(a)	  	 Basic Limitation
	  	10
				
	 	 	(b)	  	 Additional Shares
	  	10
				
	 	 	(c)	  	 Dividend Equivalents
	  	10
				
	 	 	(d)	  	 Share Limits
	  	10
				
	 SECTION 6.
	 	 	  	TERMS AND CONDITIONS OF OPTIONS	  	10
				
	 	 	(a)	  	 Stock Option Agreement
	  	10
				
	 	 	(b)	  	 Number of Shares
	  	11
				
	 	 	(c)	  	 Exercise Price
	  	11
				
	 	 	(d)	  	 Exercisability and Term
	  	11
				
	 	 	(e)	  	 Modifications or Assumption of Options
	  	11
				
	 	 	(f)	  	 Assignment or Transfer of Options
	  	11
				
	 SECTION 7.
	 	 	  	PAYMENT FOR OPTION SHARES	  	12
				
	 SECTION 8.
	 	 	  	TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS	  	12
				
	 	 	(a)	  	 SAR Agreement
	  	12
				
	 	 	(b)	  	 Number of Shares
	  	12
				
	 	 	(c)	  	 Exercise Price
	  	13
				
	 	 	(d)	  	 Exercisability and Term
	  	13
				
	 	 	(e)	  	 Exercise of SARs
	  	13
				
	 	 	(f)	  	 Modification or Assumption of SARs
	  	13
				
	 	 	(g)	  	 Assignment or Transfer of SARs
	  	13
				
	 SECTION 9.
	 	 	  	TERMS AND CONDITIONS FOR STOCK GRANTS	  	14
				
	 	 	(a)	  	 Amount and Form of Awards
	  	14
				
	 	 	(b)	  	 Stock Grant Agreement
	  	14
				
	 	 	(c)	  	 Payment for Stock Grants
	  	14
				
	 	 	(d)	  	 Vesting Conditions
	  	14
				
	 	 	(e)	  	 Assignment or Transfer of Stock Grants
	  	14
				
	 	 	(f)	  	 Voting and Dividend Rights
	  	15
				
	 	 	(g)	  	 Modification or Assumption of Stock Grants
	  	15

  

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 TABLE OF CONTENTS 
  

							
	 	 	 	  	 	  	Page

	 SECTION 10.
	 	 	  	TERMS AND CONDITIONS OF STOCK UNITS	  	15
				
	 	 	(a)	  	 Stock Unit Agreement
	  	15
				
	 	 	(b)	  	 Number of Shares
	  	15
				
	 	 	(c)	  	 Payment for Stock Units
	  	15
				
	 	 	(d)	  	 Vesting Conditions
	  	15
				
	 	 	(e)	  	 Voting and Dividend Rights
	  	16
				
	 	 	(f)	  	 Form and Time of Settlement of Stock Units
	  	16
				
	 	 	(g)	  	 Creditors’ Rights
	  	16
				
	 	 	(h)	  	 Modification or Assumption of Stock Units
	  	16
				
	 	 	(i)	  	 Assignment or Transfer of Stock Units
	  	16
				
	 SECTION 11.
	 	 	  	PROTECTION AGAINST DILUTION	  	17
				
	 	 	(a)	  	 Adjustments
	  	17
				
	 	 	(b)	  	 Participant Rights
	  	17
				
	 	 	(c)	  	 Fractional Shares
	  	17
				
	 SECTION 12.
	 	 	  	EFFECT OF A CORPORATE TRANSACTION	  	17
				
	 	 	(a)	  	 Corporate Transaction
	  	17
				
	 	 	(b)	  	 Acceleration
	  	18
				
	 	 	(c)	  	 Dissolution
	  	18
				
	 SECTION 13.
	 	 	  	LIMITATIONS ON RIGHTS	  	18
				
	 	 	(a)	  	 No Entitlements
	  	18
				
	 	 	(b)	  	 Shareholders’ Rights
	  	19
				
	 	 	(c)	  	 Regulatory Requirements
	  	19
				
	 SECTION 14.
	 	 	  	WITHHOLDING TAXES	  	19
				
	 	 	(a)	  	 General
	  	19
				
	 	 	(b)	  	 Share Withholding
	  	19
				
	 SECTION 15.
	 	 	  	DURATION AND AMENDMENTS	  	19
				
	 	 	(a)	  	 Term of the Plan
	  	19
				
	 	 	(b)	  	 Right to Amend or Terminate the Plan
	  	20
				
	 SECTION 16.
	 	 	  	EXECUTION	  	20

  

 iv 

 CISCO SYSTEMS, INC. 
  
 2005 STOCK INCENTIVE PLAN 
 EFFECTIVE AS OF NOVEMBER 15, 2005 
  
 SECTION 1. INTRODUCTION. 
  
 The
Company’s Board of Directors adopts the Cisco Systems, Inc. 2005 Stock Incentive Plan on July 14, 2005; provided that, the Plan shall become effective upon its approval by Company shareholders. If the Company’s shareholders do not approve
this Plan, no Awards will be made under this Plan. 
  
 The
purpose of the Plan is to promote the long-term success of the Company and the creation of shareholder value by offering Key Employees an opportunity to share in such long-term success by acquiring a proprietary interest in the Company. 

 
 The Plan seeks to achieve this purpose by providing for discretionary
long-term incentive Awards in the form of Options (which may constitute Incentive Stock Options or Nonstatutory Stock Options), Stock Appreciation Rights, Stock Grants and Stock Units. 
  
 The Plan shall be governed by, and construed in accordance with, the laws of the State of California (except its
choice-of-law provisions). Capitalized terms shall have the meaning provided in Section 2 unless otherwise provided in this Plan or any related Stock Option Agreement, SAR Agreement, Stock Grant Agreement or Stock Unit Agreement. 
  
 SECTION 2. DEFINITIONS. 
  
 (a) “Affiliate” means any entity other than a Subsidiary, if the
Company and/or one or more Subsidiaries own not less than 50% of such entity. 
  
 (b) “Award” means any award of an Option, SAR, Stock Grant or Stock Unit under the Plan. 
  
 (c) “Board” means the Board of Directors of the Company, as constituted from time to time. 
  
 (d) “Cashless Exercise” means, to the extent that a Stock Option
Agreement so provides and as permitted by applicable law, a program approved by the Committee in which payment may be made all or in part by delivery (on a form prescribed by the Committee) of an irrevocable direction to a securities broker to sell
Shares and to deliver all or part of the sale proceeds to the Company in payment of the aggregate Exercise Price and, if applicable, the amount necessary to satisfy the Company’s withholding obligations at the minimum statutory withholding
rates, including, but not limited to, U.S. federal and state income taxes, payroll taxes, and foreign taxes, if applicable. 
  
 (e) “Cause” means, except as may otherwise be provided in a Participant’s employment agreement or Award agreement, a conviction of a
Participant for a felony crime or the 

  

 1 

 
failure of a Participant to contest prosecution for a felony crime, or a Participant’s misconduct, fraud or dishonesty (as such terms are defined by the
Committee in its sole discretion), or any unauthorized use or disclosure of confidential information or trade secrets, in each case as determined by the Committee, and the Committee’s determination shall be conclusive and binding. 

 
 (f) “Change In Control” except as may otherwise be provided in
a Participant’s employment agreement or Award agreement, means the occurrence of any of the following: 
  
 (i) A change in the composition of the Board over a period of thirty-six consecutive months or less such that a majority of the Board
members ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals who either (A) have been Board members continuously since the beginning of such period or (B) have been elected or nominated for
election as Board members during such period by at least a majority of the Board members described in clause (A) who were still in office at the time the Board approved such election or nomination; or 
  
 (ii) The acquisition, directly or indirectly, by any person
or related group of persons (other than the Company or a person that directly or indirectly controls, is controlled by, or is under common control with, the Company) of beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act)
of securities of the Company representing more than 35% of the total combined voting power of the Company’s then outstanding securities pursuant to a tender or exchange offer made directly to the Company’s shareholders which the Board does
not recommend such shareholders accept. 
  
 (g) “Code”
means the Internal Revenue Code of 1986, as amended, and the regulations and interpretations promulgated thereunder. 
  
 (h) “Committee” means a committee described in Section 3. 
  
 (i) “Common Stock” means the Company’s common stock. 
  
 (j) “Company” means Cisco Systems, Inc., a California corporation.

  
 (k) “Consultant” means an individual who performs
bona fide services to the Company, a Parent, a Subsidiary or an Affiliate, other than as an Employee or Director or Non-Employee Director. 
  
 (l) “Corporate Transaction” except as may otherwise be provided in a Participant’s employment agreement or Award agreement, means the
occurrence of any of the following shareholder approved transactions: 
  

 -2- 

 (i) The consummation of a merger or consolidation of the Company with or into another
entity or any other corporate reorganization, if more than 50% of the combined voting power of the continuing or surviving entity’s securities outstanding immediately after such merger, consolidation or other reorganization is owned by persons
who were not shareholders of the Company immediately prior to such merger, consolidation or other reorganization; or 
  
 (ii) The sale, transfer or other disposition of all or substantially all of the Company’s assets. 
  
 A transaction shall not constitute a Corporate Transaction if its sole
purpose is to change the state of the Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transactions.

  
 (m) “Covered Employees” means those persons who are
subject to the limitations of Code Section 162(m). 
  
 (n)
“Director” means a member of the Board who is also an Employee. 
  
 (o) “Disability” means that the Key Employee is classified as disabled under a long-term disability policy of the Company or, if no such policy applies, the Key Employee is unable to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months.

  
 (p) “Employee” means any individual who is a
common-law employee of the Company, a Parent, a Subsidiary or an Affiliate. 
  
 (q) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 (r) “Exercise Price” means, in the case of an Option, the amount for which a Share may be purchased upon exercise of such Option, as specified
in the applicable Stock Option Agreement. “Exercise Price,” in the case of a SAR, means an amount, as specified in the applicable SAR Agreement, which is subtracted from the Fair Market Value in determining the amount payable upon exercise
of such SAR. 
  
 (s) “Fair Market Value” means the
market price of a Share as determined in good faith by the Committee. The Fair Market Value shall be determined by the following: 
  
 (i) If the Shares were traded over-the-counter or listed with NASDAQ on the date in question, then the Fair Market Value shall be equal to
the last transaction price quoted by the NASDAQ system for the date in question or (ii) if the Common Stock is listed on the New York Stock Exchange or the American Stock Exchange on the date in question, the Fair Market 

  

 -3- 

 
Value is the closing selling price for the Common Stock as such price is officially quoted in the composite tape of transactions on the exchange determined
by the Committee to be the primary market for the Common Stock for the date in question; provided, however, that if there is no such reported price for the Common Stock for the date in question under (i) or (ii), then such price on the last
preceding date for which such price exists shall be determinative of Fair Market Value. 
  
 If neither (i) or (ii) are applicable, then the Fair Market Value shall be determined by the Committee in good faith on such basis as it deems appropriate. 
  
 Whenever possible, the determination of Fair Market Value by the Committee
shall be based on the prices reported in the Western Edition of The Wall Street Journal. Such determination shall be conclusive and binding on all persons. 
  
 (t) “Fiscal Year” means the Company’s fiscal year. 
  
 (u) “Grant” means any grant of an Award under the Plan.

  
 (v) “Incentive Stock Option” or “ISO”
means an incentive stock option described in Code Section 422. 
  
 (w) “Key Employee” means an Employee, Director, Non-Employee Director or Consultant who has been selected by the Committee to receive an Award under the Plan. 
  
 (x) “Non-Employee Director” means a member of the Board who is not an Employee. 
  
 (y) “Nonstatutory Stock Option” or “NSO” means a stock
option that is not an ISO. 
  
 (z) “Option” means an
ISO or NSO granted under the Plan entitling the Optionee to purchase Shares. 
  
 (aa) “Optionee” means an individual, estate or other entity that holds an Option. 
  
 (bb) “Parent” means 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 status of a Parent on a date after the
adoption of the Plan shall be considered a Parent commencing as of such date. 
  
 (cc) “Participant” means an individual or estate or other entity that holds an Award. 
  
 (dd) “Performance Goals” means one or more objective measurable performance factors as determined by the Committee with respect to each
Performance Period based upon one or more factors, including, but not limited to: (i) operating income; (ii) earnings before interest, taxes, depreciation and amortization (“EBITDA”); (iii) earnings; (iv) cash 

  

 -4- 

 
flow; (v) market share; (vi) sales or revenue; (vii) expenses; (viii) cost of goods sold; (ix) profit/loss or profit margin; (x) working capital; (xi) return
on equity or assets; (xii) earnings per share; (xiii) economic value added (“EVA”); (xiv) stock price; (xv) price/earnings ratio; (xvi) debt or debt-to-equity; (xvii) accounts receivable; (xviii) writeoffs; (xix) cash; (xx) assets; (xxi)
liquidity; (xxii) operations; (xxiii) intellectual property (e.g., patents); (xxiv) product development; (xxv) regulatory activity; (xxvi) manufacturing, production or inventory; (xxvii) mergers and acquisitions or divestitures; and/or (xxviii)
financings, each with respect to the Company and/or one or more of its affiliates or operating units. Awards issued to persons who are not Covered Employees may take into account other factors. 
  
 (ee) “Performance Period” means any period not exceeding 36 months
as determined by the Committee, in its sole discretion. The Committee may establish different Performance Periods for different Participants, and the Committee may establish concurrent or overlapping Performance Periods. 
  
 (ff) “Plan” means this Cisco Systems, Inc. 2005 Stock Incentive
Plan as it may be amended from time to time. 
  
 (gg)
“Re-Price” means that the Company has lowered or reduced the Exercise Price of outstanding Options and/or outstanding SARs for any Participant(s) in a manner described by Item 402(i)(1) of SEC Regulation S-K (or its successor provision).

  
 (hh) “SAR Agreement” means the agreement described
in Section 8 evidencing each Award of a Stock Appreciation Right. 
  
 (ii) “SEC” means the Securities and Exchange Commission. 
  
 (jj) “Section 16 Persons” means those officers, directors or other persons who are subject to Section 16 of the Exchange Act. 
  
 (kk) “Securities Act” means the Securities Act of 1933, as amended. 
  
 (ll) “Service” means service as an Employee, Director,
Non-Employee Director or Consultant. A Participant’s Service does not terminate when continued service crediting is required by applicable law. However, for purposes of determining whether an Option is entitled to continuing ISO status, a
common-law employee’s Service will be treated as terminating ninety (90) days after such Employee went on leave, unless such Employee’s right to return to active work is guaranteed by law or by a contract. Service terminates in any event
when the approved leave ends, unless such Employee immediately returns to active work. The Committee determines which leaves count toward Service, and when Service terminates for all purposes under the Plan. Further, unless otherwise determined by
the Committee, a Participant’s Service shall not be deemed to have terminated merely because of a change in the capacity in which the Participant provides service to the Company, a Parent, Subsidiary or Affiliate, or a transfer between entities
(the Company 

  

 -5- 

 
or any Parent, Subsidiary, or Affiliate); provided that there is no interruption or other termination of Service. 
  
 (mm) “Share” means one share of Common Stock. 
  
 (nn) “Stock Appreciation Right” or “SAR” means a stock
appreciation right awarded under the Plan. 
  
 (oo) “Stock
Grant” means Shares awarded under the Plan. 
  
 (pp)
“Stock Grant Agreement” means the agreement described in Section 9 evidencing each Award of a Stock Grant. 
  
 (qq) “Stock Option Agreement” means the agreement described in Section 6 evidencing each Award of an Option. 
  
 (rr) “Stock Unit” means a bookkeeping entry representing the
equivalent of one Share, as awarded under the Plan. 
  
 (ss)
“Stock Unit Agreement” means the agreement described in Section 10 evidencing each Award of a Stock Unit. 
  
 (tt) “Subsidiary” means 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. 
  
 (uu) “10-Percent Shareholder” means an individual 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. In determining stock ownership, the attribution rules of Section 424(d) of the Code shall be applied. 
  
 SECTION 3. ADMINISTRATION. 
  
 (a) Committee Composition. The Board or a Committee appointed by the Board shall administer the Plan. Unless the Board provides otherwise, the
Company’s Compensation & Management Development Committee shall be the Committee. Members of the Committee shall serve for such period of time as the Board may determine and shall be subject to removal by the Board at any time. The Board
may also at any time terminate the functions of the Committee and reassume all powers and authority previously delegated to the Committee. 
  
 The Committee shall have membership composition which enables (i) Awards to Section 16 Persons to qualify as exempt from liability under Section 16(b) of
the Exchange Act 

  

 -6- 

 
and (ii) Awards to Covered Employees to qualify as performance-based compensation as provided under Code Section 162(m). 
  
 The Board may also appoint one or more separate committees of the Board,
each composed of two or more directors of the Company who need not qualify under Rule 16b-3 or Code Section 162(m), that may administer the Plan with respect to Key Employees who are not Section 16 Persons or Covered Employees, respectively, may
grant Awards under the Plan to such Key Employees and may determine all terms of such Awards. 
  
 Notwithstanding the foregoing, the Board shall constitute the Committee and shall administer the Plan with respect to Non-Employee Directors, shall grant Awards under the Plan to such Non-Employee Directors, and shall
determine all terms of such Awards. 
  
 (b) Authority of the
Committee. Subject to the provisions of the Plan, the Committee shall have full authority and sole discretion to take any actions it deems necessary or advisable for the administration of the Plan. Such actions shall include: 
  

	 	(i)	selecting Key Employees who are to receive Awards under the Plan; 

  

	 	(ii)	determining the type, number, vesting requirements and other features and conditions of such Awards and amending such Awards; 

  

	 	(iii)	correcting any defect, supplying any omission, or reconciling any inconsistency in the Plan or any Award agreement; 

  

	 	(iv)	accelerating the vesting, or extending the post-termination exercise term, of Awards at any time and under such terms and conditions as it deems appropriate;

  

	 	(v)	interpreting the Plan; 

  

	 	(vi)	making all other decisions relating to the operation of the Plan; and 

  

	 	(vii)	adopting such plans or subplans as may be deemed necessary or appropriate to provide for the participation by Key Employees of the Company and its Subsidiaries and Affiliates who
reside outside the U.S., which plans and/or subplans shall be attached hereto as Appendices. 

  
 The Committee may adopt such rules or guidelines as it deems appropriate to implement the Plan. The Committee’s determinations under the Plan shall
be final and binding on all persons. 
  
 (c) Indemnification. To
the maximum extent permitted by applicable law, each member of the Committee, or of the Board, shall be indemnified and held harmless by the Company against and from (i) any loss, cost, liability, or expense that may be imposed upon or reasonably
incurred by him or her in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to act under the Plan or any Stock
Option Agreement, SAR Agreement, Stock Grant Agreement or Stock Unit Agreement, and (ii) from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in

  

 -7- 

 
any such claim, action, suit, or proceeding against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and
defend the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the
Company’s Articles of Incorporation or Bylaws, by contract, as a matter of law, or otherwise, or under any power that the Company may have to indemnify them or hold them harmless. 
  
 SECTION 4. GENERAL. 
  
 (a) General Eligibility. Only Employees, Directors, Non-Employee Directors and Consultants shall be eligible for designation as Key Employees by the
Committee, in its sole discretion. 
  
 (b) Incentive Stock
Options. Only Key Employees who are common-law employees of the Company, a Parent or a Subsidiary shall be eligible for the grant of ISOs. In addition, a Key Employee who is a 10-Percent Shareholder shall not be eligible for the grant of an ISO
unless the requirements set forth in Section 422(c)(5) of the Code are satisfied. 
  
 (c) Restrictions on Shares. Any Shares issued pursuant to an Award shall be subject to such rights of repurchase, rights of first refusal and other transfer restrictions as the Committee may determine, in its sole
discretion. Such restrictions shall apply in addition to any restrictions that may apply to holders of Shares generally and shall also comply to the extent necessary with applicable law. In no event shall the Company be required to issue fractional
Shares under this Plan. 
  
 (d) Beneficiaries. Unless stated
otherwise in an Award agreement, a Participant may designate one or more beneficiaries with respect to an Award by timely filing the prescribed form with the Company. A beneficiary designation may be changed by filing the prescribed form with the
Company at any time before the Participant’s death. If no beneficiary was designated or if no designated beneficiary survives the Participant, then after a Participant’s death any vested Award(s) shall be transferred or distributed to the
Participant’s estate. 
  
 (e) Performance Conditions. The
Committee may, in its discretion, include performance conditions in an Award. If performance conditions are included in Awards to Covered Employees, then such Awards may be subject to the achievement of Performance Goals established by the
Committee. Such Performance Goals shall be established and administered pursuant to the requirements of Code Section 162(m). Before any Shares underlying an Award or any Award payments subject to Performance Goals are released to a Covered Employee
with respect to a Performance Period, the Committee shall certify in writing that the Performance Goals for such Performance Period have been satisfied. Awards with performance conditions that are granted to Key Employees who are not Covered
Employees need not comply with the requirements of Code Section 162(m). 
  

 -8- 

 (f) No Rights as a Shareholder. A Participant, or a transferee of a Participant, shall have no rights as
a shareholder with respect to any Common Stock covered by an Award until such person has satisfied all of the terms and conditions to receive such Common Stock, has satisfied any applicable withholding or tax obligations relating to the Award and
the Shares have been issued (as evidenced by an appropriate entry on the books of the Company or a duly authorized transfer agent of the Company). 
  
 (g) Termination of Service. Unless the applicable Award agreement or, with respect to Participants who reside in the U.S., the applicable employment
agreement provides otherwise, the following rules shall govern the vesting, exercisability and term of outstanding Awards held by a Participant in the event of termination of such Participant’s Service (in all cases subject to the term of the
Option or SAR as applicable): (i) upon termination of Service for any reason, all unvested portions of any outstanding Awards shall be immediately forfeited without consideration and the vested portions of any outstanding Stock Units shall be
settled upon termination; (ii) if the Service of a Participant is terminated for Cause, then all unexercised Options and SARs, unvested portions of Stock Units and unvested portions of Stock Grants shall terminate and be forfeited immediately
without consideration; (iii) if the Service of Participant is terminated for any reason other than for Cause, death, or Disability, then the vested portion of his/her then-outstanding Options/SARs may be exercised by such Participant or his or her
personal representative within three months after the date of such termination; or (iv) if the Service of a Participant is terminated due to death or Disability, the vested portion of his/her then-outstanding Options/SARs may be exercised within
eighteen months after the date of termination of Service. 
  
 (h)
Director Fees. Each Non-Employee Director may elect to receive a Stock Grant under the Plan in lieu of payment of a portion of his or her regular annual retainer based on the Fair Market Value of the Shares on the date any regular annual retainer
would otherwise be paid. For purposes of the Plan, a Non-Employee Director’s regular annual retainer shall not include any additional retainer paid in connection with service on any committee of the Board or paid for any other reason. Such an
election may be for any dollar or percentage amount equal to at least 25% of the Non-Employee Director’s regular annual retainer (up to a limit of 100% of the Non-Employee Director’s regular annual retainer). The election must be made
prior to the beginning of the annual board of directors cycle which shall be any twelve month continuous period designated by the Board. Any amount of the regular annual retainer not elected to be received as a Stock Grant shall be payable in cash
in accordance with the Company’s standard payment procedures. Shares granted under this Section 4(h) shall otherwise be subject to the terms of the Plan applicable to Non-Employee Directors or to Participants generally (other than provisions
specifically applying only to Employees). 
  

 -9- 

 SECTION 5. SHARES SUBJECT TO PLAN AND SHARE LIMITS. 
  
 (a) Basic Limitation. The stock issuable under the Plan shall be authorized
but unissued Shares. The aggregate number of Shares reserved for Awards under the Plan shall not exceed 350,000,000 Shares, subject to adjustment pursuant to Section 11. 
  
 (b) Additional Shares. If Awards are forfeited or are terminated for any other reason before being exercised, then the
Shares underlying such Awards shall again become available for Awards under the Plan. SARs shall be counted in full against the number of Shares available for issuance under the Plan, regardless of the number of Shares issued upon settlement of the
SARs. 
  
 (c) Dividend Equivalents. Any dividend equivalents
distributed under the Plan shall not be applied against the number of Shares available for Awards. 
  
 (d) Share Limits. 
  
 (i) Limits on Options. Subject to adjustment pursuant to Section 11, no Key Employee shall receive Options to purchase Shares
during any Fiscal Year covering in excess of 5,000,000 Shares and the aggregate maximum number of Shares that may be issued in connection with ISOs shall be 350,000,000 Shares. 
  
 (ii) Limits on SARs. Subject to adjustment pursuant to Section 11, no Key Employee shall receive
Awards of SARs during any Fiscal Year covering in excess of 5,000,000 Shares and the aggregate maximum number of Shares that may be issued in connection with SARs shall be 350,000,000 Shares. 
  
 (iii) Limits on Stock Grants and Stock Units. Subject
to adjustment pursuant to Section 11, no Key Employee shall receive Stock Grants or Stock Units during any Fiscal Year covering, in the aggregate, in excess of 5,000,000 Shares and the aggregate maximum number of Shares that may be issued as Stock
Grants or Stock Units shall in the aggregate be 35,000,000 Shares. 
  
 (iv) Limits on Awards to Non-Employee Directors. Subject to adjustment pursuant to Section 11, no Non-Employee Director shall receive Awards during any Fiscal Year covering, in the aggregate, in excess of
50,000 Shares; provided that any Shares received pursuant to an election under Section 4(h) shall not count against such limit. 
  
 SECTION 6. TERMS AND CONDITIONS OF OPTIONS. 
  
 (a) Stock Option Agreement. Each Grant of an Option under the Plan shall be evidenced and governed exclusively by a Stock Option Agreement between the
Optionee and the Company. Such Option shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions that are not inconsistent with the 

  

 -10- 

 
Plan and that the Committee deems appropriate for inclusion in a Stock Option Agreement (including without limitation any performance conditions). The
provisions of the various Stock Option Agreements entered into under the Plan need not be identical. The Stock Option Agreement shall also specify whether the Option is an ISO or an NSO. 
  
 (b) Number of Shares. Each Stock Option Agreement shall specify the number of Shares that are subject to the Option and
shall be subject to adjustment of such number in accordance with Section 11. 
  
 (c) Exercise Price. An Option’s Exercise Price shall be established by the Committee and set forth in a Stock Option Agreement. The Exercise Price of an Option shall not be less than 100% of the Fair Market Value
(110% for ISO grants to 10-Percent Shareholders) on the date of Grant. 
  
 (d) Exercisability and Term. Each Stock Option Agreement shall specify the date when all or any installment of the Option is to become exercisable. The Stock Option Agreement shall also specify the term of the Option; provided that the term
of an Option shall in no event exceed nine years from the date of Grant. Unless the applicable Stock Option Agreement provides otherwise, each Option shall vest and become exercisable with respect to 20% of the Shares subject to the Option upon
completion of one year of Service measured from the vesting commencement date, the balance of the Shares subject to the Option shall vest and become exercisable in forty-eight equal installments upon completion of each month of Service thereafter,
and the term of the Option shall be nine years from the date of Grant. A Stock Option Agreement may provide for accelerated vesting in the event of the Participant’s death, Disability, or other events. Notwithstanding any other provision of the
Plan, no Option can be exercised after the expiration date provided in the applicable Stock Option Agreement and no Option may provide that, upon exercise of the Option, a new Option will automatically be granted. 
  
 (e) Modifications or Assumption of Options. Within the limitations of the
Plan, the Committee may modify, extend or assume outstanding options or may accept the cancellation of outstanding options (whether granted by the Company or by another issuer) in return for the grant of new Options for the same or a different
number of Shares, at the same or a different Exercise Price, and with the same or different vesting provisions. Notwithstanding the preceding sentence or anything to the contrary herein, the Committee may not Re-Price outstanding Options unless
there is approval by the Company shareholders and no modification of an Option shall, without the consent of the Optionee, impair his or her rights or obligations under such Option. 
  
 (f) Assignment or Transfer of Options. Except as otherwise provided in the applicable Stock Option Agreement and then only
to the extent permitted by applicable law, no Option shall be transferable by the Optionee other than by will or by the laws of descent and distribution. Except as otherwise provided in the applicable Stock Option Agreement, an Option may be
exercised during the lifetime of the Optionee only by the Optionee or by the guardian or legal representative of the Optionee. No Option or interest therein may be assigned, pledged or hypothecated by the Optionee during his or 

  

 -11- 

 
her lifetime, whether by operation of law or otherwise, or be made subject to execution, attachment or similar process. 
  
 SECTION 7. PAYMENT FOR OPTION SHARES. 
  
 The entire Exercise Price of Shares issued upon exercise of Options shall be
payable in cash at the time when such Shares are purchased, except as follows and if so provided for in an applicable Stock Option Agreement: 
  
 (i) Surrender of Stock. Payment for all or any part of the Exercise Price may be made with Shares which have already been owned by the
Optionee; provided that the Committee may, in its sole discretion, require that Shares tendered for payment be previously held by the Optionee for a minimum duration. Such Shares shall be valued at their Fair Market Value. 
  
 (ii) Cashless Exercise. Payment for all or any part of the
Exercise Price may be made through Cashless Exercise. 
  
 (iii) Other Forms of Payment. Payment for all or any part of the Exercise Price may be made in any other form that is consistent with applicable laws, regulations and rules and approved by the Committee. 
  
 In the case of an ISO granted under the Plan, payment shall be made only
pursuant to the express provisions of the applicable Stock Option Agreement. The Stock Option Agreement may specify that payment may be made in any form(s) described in this Section 7. In the case of an NSO granted under the Plan, the Committee may,
in its discretion at any time, accept payment in any form(s) described in this Section 7. 
  
 SECTION 8. TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS. 
  
 (a) SAR Agreement. Each Grant of a SAR under the Plan shall be evidenced and governed exclusively by a SAR Agreement between the Participant and the
Company. Such SAR shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions that are not inconsistent with the Plan and that the Committee deems appropriate for inclusion in a SAR
Agreement (including without limitation any performance conditions). A SAR Agreement may provide for a maximum limit on the amount of any payout notwithstanding the Fair Market Value on the date of exercise of the SAR. The provisions of the various
SAR Agreements entered into under the Plan need not be identical. SARs may be granted in consideration of a reduction in the Participant’s compensation. 
  

(b) Number of Shares. Each SAR Agreement shall specify the number of Shares to which the SAR pertains and shall be subject to adjustment of such number
in accordance with Section 11. 
  

 -12- 

 (c) Exercise Price. Each SAR Agreement shall specify the Exercise Price which shall be established by the
Committee. The Exercise Price of a SAR shall not be less than 100% of the Fair Market Value on the date of Grant. 
  
 (d) Exercisability and Term. Each SAR Agreement shall specify the date when all or any installment of the SAR is to become exercisable. The SAR Agreement
shall also specify the term of the SAR which shall not exceed nine years from the date of Grant. Unless the applicable SAR Agreement provides otherwise, each SAR shall vest and become exercisable with respect to 20% of the Shares subject to the SAR
upon completion of one year of Service measured from the vesting commencement date, the balance of the Shares subject to the SAR shall vest and become exercisable in forty-eight equal installments upon completion of each month of Service thereafter,
and the term of the SAR shall be nine years from the date of Grant. A SAR Agreement may provide for accelerated vesting in the event of the Participant’s death, Disability, or other events. SARs may be awarded in combination with Options or
Stock Grants, and such an Award shall provide that the SARs will not be exercisable unless the related Options or Stock Grants are forfeited. A SAR may be included in an ISO only at the time of Grant but may be included in an NSO at the time of
Grant or at any subsequent time, but not later than six months before the expiration of such NSO. No SAR may provide that, upon exercise of the SAR, a new SAR will automatically be granted. 
  
 (e) Exercise of SARs. If, on the date when a SAR expires, the Exercise Price
under such SAR is less than the Fair Market Value on such date but any portion of such SAR has not been exercised or surrendered, then such SAR shall automatically be deemed to be exercised as of such date with respect to such portion. Upon exercise
of a SAR, the Participant (or any person having the right to exercise the SAR) shall receive from the Company (i) Shares, (ii) cash or (iii) any combination of Shares and cash, as the Committee shall determine at the time of Grant of the SAR, in its
sole discretion. The amount of cash and/or the Fair Market Value of Shares received upon exercise of SARs shall, in the aggregate, be equal to the amount by which the Fair Market Value (on the date of exercise) of the Shares subject to the SARs
exceeds the Exercise Price of the Shares. 
  
 (f) Modification or
Assumption of SARs. Within the limitations of the Plan, the Committee may modify, extend or assume outstanding stock appreciation rights or may accept the cancellation of outstanding stock appreciation rights (including stock appreciation rights
granted by another issuer) in return for the grant of new SARs for the same or a different number of Shares, at the same or a different Exercise Price, and with the same or different vesting provisions. Notwithstanding the preceding sentence or
anything to the contrary herein, unless there is approval by the Company shareholders, the Committee may not Re-Price outstanding SARs and no modification of a SAR shall, without the consent of the Participant, impair his or her rights or
obligations under such SAR. 
  
 (g) Assignment or Transfer of
SARs. Except as otherwise provided in the applicable SAR Agreement and then only to the extent permitted by applicable law, no SAR shall be 

  

 -13- 

 
transferable by the Participant other than by will or by the laws of descent and distribution. Except as otherwise provided in the applicable SAR Agreement,
a SAR may be exercised during the lifetime of the Participant only by the Participant or by the guardian or legal representative of the Participant. No SAR or interest therein may be assigned, pledged or hypothecated by the Participant during his or
her lifetime, whether by operation of law or otherwise, or be made subject to execution, attachment or similar process. 
  
 SECTION 9. TERMS AND CONDITIONS FOR STOCK GRANTS. 
  
 (a) Amount and Form of Awards. Awards under this Section 9 may be granted in the form of a Stock Grant. Each Stock Grant Agreement shall specify the
number of Shares to which the Stock Grant pertains and shall be subject to adjustment of such number in accordance with Section 11. A Stock Grant may also be awarded in combination with NSOs, and such an Award may provide that the Stock Grant will
be forfeited in the event that the related NSOs are exercised. 
  
 (b) Stock Grant Agreement. Each Stock Grant awarded under the Plan shall be evidenced and governed exclusively by a Stock Grant Agreement between the Participant and the Company. Each Stock Grant shall be subject to all applicable terms and
conditions of the Plan and may be subject to any other terms and conditions that are not inconsistent with the Plan and that the Committee deems appropriate for inclusion in the applicable Stock Grant Agreement (including without limitation any
performance conditions). The provisions of the various Stock Grant Agreements entered into under the Plan need not be identical. 
  
 (c) Payment for Stock Grants. Stock Grants may be issued with or without cash consideration or any other form of legally permissible consideration
approved by the Committee. 
  
 (d) Vesting Conditions. Each Stock
Grant may or may not be subject to vesting. Any such vesting provision may provide that Shares shall vest based on Service over time or shall vest, in full or in installments, upon satisfaction of performance conditions specified in the Stock Grant
Agreement which may include Performance Goals pursuant to Section 4(e). Unless the applicable Stock Grant Agreement provides otherwise, each Stock Grant shall vest with respect to 20% of the Shares subject to the Stock Grant upon completion of each
year of Service on each of the first through fifth annual anniversaries of the vesting commencement date. A Stock Grant Agreement may provide for accelerated vesting in the event of the Participant’s death, Disability, or other events.

  
 (e) Assignment or Transfer of Stock Grants. Except as
provided in the applicable Stock Grant Agreement, and then only to the extent permitted by applicable law, a Stock Grant awarded under the Plan shall not be anticipated, assigned, attached, garnished, optioned, transferred or made subject to any
creditor’s process, whether voluntarily, involuntarily or by operation of law. Any act in violation of this Section 9(e) shall be void. However, 

  

 -14- 

 
this Section 9(e) shall not preclude a Participant from designating a beneficiary who will receive any vested outstanding Stock Grant Awards in the event of
the Participant’s death, nor shall it preclude a transfer of vested Stock Grant Awards by will or by the laws of descent and distribution. 
  
 (f) Voting and Dividend Rights. The holder of a Stock Grant awarded under the Plan shall have the same voting, dividend and other rights as the
Company’s other shareholders. A Stock Grant Agreement, however, may require that the holder of such Stock Grant invest any cash dividends received in additional Shares subject to the Stock Grant. Such additional Shares subject to the Stock
Grant shall be subject to the same conditions and restrictions as the Stock Grant with respect to which the dividends were paid. Such additional Shares subject to the Stock Grant shall not reduce the number of Shares available for issuance under
Section 5. 
  
 (g) Modification or Assumption of Stock Grants.
Within the limitations of the Plan, the Committee may modify or assume outstanding stock grants or may accept the cancellation of outstanding stock grants (including stock granted by another issuer) in return for the grant of new Stock Grants for
the same or a different number of Shares and with the same or different vesting provisions. Notwithstanding the preceding sentence or anything to the contrary herein, no modification of a Stock Grant shall, without the consent of the Participant,
impair his or her rights or obligations under such Stock Grant. 
  
 SECTION 10.
TERMS AND CONDITIONS OF STOCK UNITS. 
  
 (a)
Stock Unit Agreement. Each grant of Stock Units under the Plan shall be evidenced and governed exclusively by a Stock Unit Agreement between the Participant and the Company. Such Stock Units shall be subject to all applicable terms and conditions of
the Plan and may be subject to any other terms and conditions that are not inconsistent with the Plan and that the Committee deems appropriate for inclusion in the applicable Stock Unit Agreement (including without limitation any performance
conditions). The provisions of the various Stock Unit Agreements entered into under the Plan need not be identical. Stock Units may be granted in consideration of a reduction in the Participant’s other compensation. 
  
 (b) Number of Shares. Each Stock Unit Agreement shall specify the number of
Shares to which the Stock Unit Grant pertains and shall be subject to adjustment of such number in accordance with Section 11. 
  
 (c) Payment for Stock Units. Stock Units shall be issued without consideration. 
  
 (d) Vesting Conditions. Each Award of Stock Units may or may not be subject to vesting. Any such vesting provision may
provide that Shares shall vest based on Service over time or shall vest, in full or in installments, upon satisfaction of performance conditions specified in the Stock Unit Agreement which may include Performance Goals pursuant to Section 4(e).
Unless the applicable Stock Unit Agreement provides 

  

 -15- 

 
otherwise, each Stock Unit shall vest with respect to 20% of the Shares subject to the Stock Unit upon completion of each year of Service on each of the
first through fifth annual anniversaries of the vesting commencement date. A Stock Unit Agreement may provide for accelerated vesting in the event of the Participant’s death, Disability, or other events. 
  
 (e) Voting and Dividend Rights. The holders of Stock Units shall have no
voting rights. Prior to settlement or forfeiture, any Stock Unit awarded under the Plan may, at the Committee’s discretion, carry with it a right to dividend equivalents. Such right entitles the holder to be credited with an amount equal to all
cash dividends paid on one Share while the Stock Unit is outstanding. Dividend equivalents may be converted into additional Stock Units. Settlement of dividend equivalents may be made in the form of cash, in the form of Shares, or in a combination
of both. Prior to distribution, any dividend equivalents which are not paid shall be subject to the same conditions and restrictions as the Stock Units to which they attach. 
  
 (f) Form and Time of Settlement of Stock Units. Settlement of vested Stock Units may be made in the form of (a) cash, (b)
Shares or (c) any combination of both, as determined by the Committee at the time of the grant of the Stock Units, in its sole discretion. Methods of converting Stock Units into cash may include (without limitation) a method based on the average
Fair Market Value of Shares over a series of trading days. Vested Stock Units may be settled in a lump sum or in installments. The distribution may occur or commence when the vesting conditions applicable to the Stock Units have been satisfied or
have lapsed, or it may be deferred, in accordance with applicable law, to any later date. The amount of a deferred distribution may be increased by an interest factor or by dividend equivalents. Until an Award of Stock Units is settled, the number
of such Stock Units shall be subject to adjustment pursuant to Section 11. 
  
 (g) Creditors’ Rights. A holder of Stock Units shall have no rights other than those of a general creditor of the Company. Stock Units represent an unfunded and unsecured obligation of the Company, subject to the
terms and conditions of the applicable Stock Unit Agreement. 
  
 (h) Modification or Assumption of Stock Units. Within the limitations of the Plan, the Committee may modify or assume outstanding stock units or may accept the cancellation of outstanding stock units (including stock units granted by
another issuer) in return for the grant of new Stock Units for the same or a different number of Shares and with the same or different vesting provisions. Notwithstanding the preceding sentence or anything to the contrary herein, no modification of
a Stock Unit shall, without the consent of the Participant, impair his or her rights or obligations under such Stock Unit. 
  
 (i) Assignment or Transfer of Stock Units. Except as provided in the applicable Stock Unit Agreement, and then only to the extent permitted by applicable
law, Stock Units shall not be anticipated, assigned, attached, garnished, optioned, transferred or made subject to any creditor’s process, whether voluntarily, involuntarily or by operation of law. Any act in violation of this Section 10(i)
shall be void. However, this Section 10(i) 

  

 -16- 

 
shall not preclude a Participant from designating a beneficiary who will receive any outstanding vested Stock Units in the event of the Participant’s
death, nor shall it preclude a transfer of vested Stock Units by will or by the laws of descent and distribution. 
  
 SECTION 11. PROTECTION AGAINST DILUTION. 
  
 (a) Adjustments. In the event of a subdivision of the outstanding Shares, a declaration of a dividend payable in Shares, a declaration of a dividend
payable in a form other than Shares in an amount that has a material effect on the price of Shares, a combination or consolidation of the outstanding Shares (by reclassification or otherwise) into a lesser number of Shares, a recapitalization, a
spin-off or a similar occurrence, the Committee shall make appropriate adjustments to the following: 
  
 (i) the number of Shares and the kind of shares or securities available for future Awards under Section 5; 
  
 (ii) the limits on Awards specified in Section 5;

  
 (iii) the number of Shares and the kind of
shares or securities covered by each outstanding Award; or 
  
 (iv) the Exercise Price under each outstanding SAR or Option. 
  
 (b) Participant Rights. Except as provided in this Section 11, a Participant shall have no rights by reason of any issue by the Company of stock of any class or securities convertible into stock of any class, any
subdivision or consolidation of shares of stock of any class, the payment of any stock dividend or any other increase or decrease in the number of shares of stock of any class. If by reason of an adjustment pursuant to this Section 11 a
Participant’s Award covers additional or different shares of stock or securities, then such additional or different shares and the Award in respect thereof shall be subject to all of the terms, conditions and restrictions which were applicable
to the Award and the Shares subject to the Award prior to such adjustment. 
  
 (c) Fractional Shares. Any adjustment of Shares pursuant to this Section 11 shall be rounded down to the nearest whole number of Shares. Under no circumstances shall the Company be required to authorize or issue
fractional shares and no consideration shall be provided as a result of any fractional shares not being issued or authorized. 
  
 SECTION 12. EFFECT OF A CORPORATE TRANSACTION. 
  
 (a) Corporate Transaction. In the event that the Company is a party to a Corporate Transaction, outstanding Awards shall be subject to the applicable
agreement of merger, reorganization, or sale of assets. Such agreement may provide, without limitation, for the assumption or substitution of outstanding Options, SARs, or Stock Units by the surviving 

  

 -17- 

 
corporation or its parent, for the assumption of outstanding Stock Grant Agreements by the surviving corporation or its parent, for the replacement of
outstanding Options, SARs, and Stock Units with a cash incentive program of the surviving corporation which preserves the spread existing on the unvested portions of such outstanding Awards at the time of the transaction and provides for subsequent
payout in accordance with the same vesting provisions applicable to those Awards, for accelerated vesting of outstanding Awards, or for the cancellation of outstanding Options, SARs, and Stock Units, with or without consideration, in all cases
without the consent of the Participant. 
  
 (b) Acceleration. The
Committee may determine, at the time of grant of an Award or thereafter, that such Award shall become fully vested as to all Shares subject to such Award in the event that a Corporate Transaction or a Change in Control occurs. Unless otherwise
provided in the applicable Award agreement, in the event that a Corporate Transaction occurs and any outstanding Options, SARs or Stock Units are not assumed, substituted, or replaced with a cash incentive program pursuant to Section 12(a) or any
outstanding Stock Grant Agreements are not assumed pursuant to Section 12(a), then such Awards shall fully vest and be fully exercisable immediately prior to such Corporate Transaction. Immediately following the consummation of a Corporate
Transaction, all outstanding Options, SARs and Stock Units shall terminate and cease to be outstanding, except to the extent that they are assumed by the surviving corporation or its parent. 
  
 (c) Dissolution. To the extent not previously exercised or settled, Options,
SARs and Stock Units shall terminate immediately prior to the dissolution or liquidation of the Company. 
  
 SECTION 13. LIMITATIONS ON RIGHTS. 
  
 (a) No Entitlements. A Participant’s rights, if any, in respect of or in connection with any Award is derived solely from the discretionary decision of the Company to permit the individual to participate in the
Plan and to benefit from a discretionary Award. By accepting an Award under the Plan, a Participant expressly acknowledges that there is no obligation on the part of the Company to continue the Plan and/or grant any additional Awards. Any Award
granted hereunder is not intended to be compensation of a continuing or recurring nature, or part of a Participant’s normal or expected compensation, and in no way represents any portion of a Participant’s salary, compensation, or other
remuneration for purposes of pension benefits, severance, redundancy, resignation or any other purpose. 
  
 Neither the Plan nor any Award granted under the Plan shall be deemed to give any individual a right to remain an employee, consultant or director of the
Company, a Parent, a Subsidiary or an Affiliate. The Company and its Parents and Subsidiaries and Affiliates reserve the right to terminate the Service of any person at any time, and for any reason, subject to applicable laws, the Company’s
Articles of Incorporation and Bylaws and a written employment agreement (if any), and such terminated person shall be deemed irrevocably to have waived any claim to damages or specific performance for 

  

 -18- 

 
breach of contract or dismissal, compensation for loss of office, tort or otherwise with respect to the Plan or any outstanding Award that is forfeited
and/or is terminated by its terms or to any future Award. 
  
 (b)
Shareholders’ Rights. A Participant shall have no dividend rights, voting rights or other rights as a shareholder with respect to any Shares covered by his or her Award prior to the issuance of such Shares (as evidenced by an appropriate entry
on the books of the Company or a duly authorized transfer agent of the Company). No adjustment shall be made for cash dividends or other rights for which the record date is prior to the date when such Shares are issued, except as expressly provided
in Section 11. 
  
 (c) Regulatory Requirements. Any other
provision of the Plan notwithstanding, the obligation of the Company to issue Shares or other securities under the Plan shall be subject to all applicable laws, rules and regulations and such approval by any regulatory body as may be required. The
Company reserves the right to restrict, in whole or in part, the delivery of Shares or other securities pursuant to any Award prior to the satisfaction of all legal requirements relating to the issuance of such Shares or other securities, to their
registration, qualification or listing or to an exemption from registration, qualification or listing. 
  
 SECTION 14. WITHHOLDING TAXES. 
  
 (a) General. A Participant shall make arrangements satisfactory to the Company for the satisfaction of any withholding tax obligations that arise in connection with his or her Award. The Company shall not be required
to issue any Shares or make any cash payment under the Plan until such obligations are satisfied. 
  
 (b) Share Withholding. If a public market for the Company’s Shares exists, the Committee may permit a Participant to satisfy all or part of his or
her withholding or income tax obligations by having the Company withhold all or a portion of any Shares that otherwise would be issued to him or her or by surrendering or attesting to all or a portion of any Shares that he or she previously
acquired. Such Shares shall be valued based on the value of the actual trade or, if there is none, the Fair Market Value as of the previous day. Any payment of taxes by assigning Shares to the Company may be subject to restrictions, including, but
not limited to, any restrictions required by rules of the SEC. The Committee may, in its discretion, also permit a Participant to satisfy withholding or income tax obligations related to an Award through Cashless Exercise or through a sale of Shares
underlying the Award. 
  
 SECTION 15. DURATION AND
AMENDMENTS. 
  
 (a) Term of the Plan. The Plan shall
become effective upon its approval by Company shareholders. The Plan shall terminate at the Company’s 2007 Annual Meeting of Shareholders and may be terminated on any earlier date pursuant to this Section 15. 
  

 -19- 

 (b) Right to Amend or Terminate the Plan. The Board may amend or terminate the Plan at any time and for
any reason. The termination of the Plan, or any amendment thereof, shall not impair the rights or obligations of any Participant under any Award previously granted under the Plan without the Participant’s consent. No Awards shall be granted
under the Plan after the Plan’s termination. An amendment of the Plan shall be subject to the approval of the Company’s shareholders only to the extent such approval is otherwise required by applicable laws, regulations or rules.

  
 SECTION 16. EXECUTION. 
  
 To record the adoption of the Plan by the Board, the Company has caused its
duly authorized officer to execute this Plan on behalf of the Company. 
  

			
	CISCO SYSTEMS, INC.
		
	By:	 	 /s/    MARK CHANDLER

 Mark Chandler

		
	Title:	 	Vice President, Legal Services, General Counsel and Secretary

  

 -20- 

 CISCO SYSTEMS, INC. 
 NOTICE OF GRANT OF STOCK OPTION 
  
 Notice is hereby given of the following option grant (the “Option”) made to purchase shares of Cisco Systems, Inc. (the “Company”) common stock: 
  
 Optionee:
                                        
                                        
                                        
                                        
                               
  
 Grant Date:
                                        
                                        
                                        
                                        
                            
  

	Type  of  Option:	___ Incentive Stock Option 

  

	    	___ Nonstatutory Stock Option 

  
 Grant Number:
                                        
                                        
                                        
                                        
                 
  
 Number of Option Shares:
                                        
                                        
                                        
                           shares 
  
 Exercise Price: $_________ per share 
  
 Vesting Commencement Date:
                                        
                                        
                                        
                               
  
 Expiration Date:
                                        
                                        
                                        
                                        
                   
  
 Exercise Schedule 
  
 The Option shall vest and become exercisable with respect to (i) twenty percent (20%) of the Option Shares upon Optionee’s completion of
one (1) year of Service measured from the Vesting Commencement Date and (ii) the balance of the Option Shares in a series of forty-eight (48) successive equal monthly installments upon Optionee’s completion of each additional
month of Service over the forty-eight (48)-month period measured from the first annual anniversary of the Vesting Commencement Date. In no event shall the Option vest and become exercisable for any additional Option Shares after Optionee’s
cessation of Service. 
  
 Should Optionee request a reduction to
his or her work commitment to less than thirty (30) hours per week, then the Committee shall have the right, to extend the period over which the Option shall thereafter vest and become exercisable for the Option Shares during the remainder of
the Option term. The decision whether or not to approve Optionee’s request for any reduced work commitment shall be at the sole discretion of the Company. In no event shall any extension of the Exercise Schedule for the Option Shares result in
the extension of the Expiration Date of the Option. 
  
 Optionee
understands and agrees that the Option is offered subject to and in accordance with the terms of the Cisco Systems, Inc. 2005 Stock Incentive Plan (the “Plan”). Optionee further agrees to be bound by the terms of the Plan and the terms of
the Option as set forth in the Stock Option Agreement attached hereto. 
  
 No Employment or Service Contract. Nothing in this Notice or in the attached Stock Option Agreement or in the Plan shall confer upon 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 Optionee) or of Optionee, which rights are hereby expressly reserved by each, to terminate Optionee’s Service at any time for
any reason, with or without cause. 
  
 Definitions. All capitalized
terms in this Notice shall have the meaning assigned to them in this Notice, the attached Stock Option Agreement or the Plan. 

 STOCK OPTION AGREEMENT 
  
 Recitals 
  
 A. The Board has adopted the Plan for the purpose of retaining the services of selected Employees, non-employee members of the Board or of the board of directors of any
Parent or Subsidiary and Consultants and other independent advisors who provide services to the Company (or any Parent or Subsidiary). 
  
 B. Optionee is to render valuable services to the Company (or a Parent or Subsidiary), and this Agreement is executed pursuant to, and is intended to carry out the
purposes of, the Plan in connection with the Company’s grant of an option to Optionee. 
  
 C. All capitalized terms in this Agreement shall have the meaning assigned to them in this Agreement, the attached Notice of Grant of Stock Option (the “ Notice”), or the Plan. 
  
 NOW, THEREFORE, it is hereby agreed as follows:

  
 1. Grant of Option. The Company hereby grants
to Optionee, as of the Grant Date, an option to purchase up to the number of Option Shares specified in the Notice. The Option Shares shall be purchasable from time to time during the Option term specified in Paragraph 2 at the Exercise Price
specified in the Notice. 
  
 2. Option Term. This
Option shall have a maximum term of nine (9) years measured from the Grant Date and shall accordingly expire at the close of business on the Expiration Date, unless sooner terminated in accordance with Paragraph 5 or 6. 
  
 3. Limited Transferability. This Option may, in connection with
the Optionee’s estate plan and only to the extent permitted by applicable laws, regulations and rules, be assigned in whole or in part during Optionee’s lifetime to one or more members of the Optionee’s immediate family or to a trust
established for the exclusive benefit of one or more such family members. The assigned portion shall be exercisable only by the person or persons who acquire a proprietary interest in the Option pursuant to such assignment. The terms applicable to
the assigned portion shall be the same as those in effect for this Option immediately prior to such assignment and shall be set forth in such documents issued to the assignee as the Company may deem appropriate. Should the Optionee die while holding
this Option, then this Option shall be transferred in accordance with Optionee’s will or the laws of descent and distribution. 
  
 4. Dates of Exercise. This Option shall vest and become exercisable for the Option Shares in one or more installments as specified in the
Notice. As the Option becomes exercisable for such installments, those installments shall accumulate and the Option shall remain exercisable for the accumulated installments until the Expiration Date or sooner termination of the Option term under
Paragraph 5 or 6. As an administrative matter, the exercisable portion of this Option may only be exercised until the close of the Nasdaq National Market on the last trading day before the Expiration Date or earlier date of termination of the Option
term under Paragraph 5. Any later 

 
attempt to exercise this Option will not be honored. For example, if Optionee ceases to remain in Service as provided in Paragraph 5(i) and the date three
(3) months from the date of cessation is Monday, July 4 (a holiday on which the Nasdaq National Market is closed), Optionee must exercise the exercisable portion of this Option by 4 pm Eastern Daylight Time on Friday, July 1.

  
 5. Cessation of Service. The Option term
specified in Paragraph 2 shall terminate (and this Option shall cease to be outstanding) prior to the Expiration Date should any of the following provisions become applicable: 
  
 (i) Should Optionee cease to remain in Service for any reason (other than death, Disability or Cause) while this Option is
outstanding, then Optionee shall have a period of three (3) months (commencing with the date of such cessation of Service) during which to exercise this Option, but in no event shall this Option be exercisable at any time after the Expiration
Date. 
  
 (ii) If Optionee dies while this Option is outstanding,
then the personal representative of Optionee’s estate or the person or persons to whom the Option is transferred pursuant to Optionee’s will or in accordance with the laws of descent and distribution shall have the right to exercise this
Option. Such right shall lapse, and this Option shall cease to be outstanding, upon the earlier of (A) the expiration of the eighteen (18)- month period measured from the date of Optionee’s death or (B) the Expiration Date.

  
 (iii) Should Optionee cease Service by reason of Disability
while this Option is outstanding, then Optionee shall have a period of eighteen (18) months (commencing with the date of such cessation of Service) during which to exercise this Option, but in no event shall this Option be exercisable at any
time after the Expiration Date. 
  
 (iv) Optionee’s date of
cessation of Service shall mean the date upon which Optionee ceases active performance of services for the Company following the provision of such notification of termination or resignation from Service and shall be determined solely by this
Agreement and without reference to any other agreement, written or oral, including Optionee’s contract of employment, and shall not otherwise include any period of notice of termination of employment, whether expressed or implied. 

 
 (v) During the limited period of post-Service exercisability, this Option
may not be exercised in the aggregate for more than the number of vested Option Shares for which the Option is exercisable at the time of Optionee’s cessation of Service. Upon the expiration of such limited exercise period or (if earlier) upon
the Expiration Date, this Option shall terminate and cease to be outstanding for any vested Option Shares for which the Option has not been exercised. However, this Option shall, immediately upon Optionee’s cessation of Service for any reason,
terminate and cease to be outstanding with respect to any Option Shares in which Optionee is not otherwise at that time vested or for which this Option is not otherwise at that time exercisable. 

 (vi) Should Optionee’s Service be terminated for Cause or should Optionee otherwise engage in
activities constituting Cause while this Option is outstanding, then this Option shall terminate immediately and cease to remain outstanding. In the event Optionee’s Service with the Company is suspended pending an investigation of whether
Optionee’s Service will be terminated for Cause, all Optionee’s rights under the Option, including the right to exercise the Option, shall be suspended during the investigation period. 
  
 6. Special Acceleration of Option 
  
 (a) This Option, to the extent outstanding at the time of a Corporate
Transaction but not otherwise fully vested and exercisable, shall automatically accelerate so that this Option shall, immediately prior to the effective date of the Corporate Transaction, become vested and exercisable for all of the Option Shares at
the time subject to this Option and may be exercised for any or all of those Option Shares as fully-vested Shares. No such acceleration of this Option, however, shall occur if and to the extent: (i) this Option is, in connection with the
Corporate Transaction, either assumed by the successor corporation (or parent thereof) or replaced with a comparable option to purchase shares of the capital stock of the successor corporation (or parent thereof) or (ii) this Option is replaced
with a cash incentive program of the successor corporation which preserves the spread existing on the unvested Option Shares at the time of the Corporate Transaction (the excess of the Fair Market Value of those Option Shares over the aggregate
Exercise Price payable for such Shares) and provides for subsequent pay-out in accordance with the same Exercise Schedule set forth in the Notice. The determination of option comparability under clause (i) shall be made by the Committee, and
such determination shall be final, binding and conclusive. 
  
 (b)
Immediately following the effective date of the Corporate Transaction, this Option shall terminate and cease to be outstanding, except to the extent assumed by the successor corporation (or parent thereof) in connection with the Corporate
Transaction. 
  
 (c) If this Option is assumed in connection with
a Corporate Transaction, then the Committee shall appropriately adjust the number of shares and the kind of shares or securities covered by the Option and the Exercise Price immediately after such Corporate Transaction, provided the aggregate
Exercise Price shall remain the same. 
  
 (d) This Option, to the
extent outstanding at the time of a Change in Control but not otherwise fully vested and exercisable, shall automatically accelerate so that this Option shall, immediately prior to the effective date of the Change in Control, become vested and
exercisable for all of the Option Shares at the time subject to this Option and may be exercised for any or all of those Option Shares as fully-vested Shares. This Option shall remain so exercisable until the Expiration Date or sooner termination of
the Option term. 
  
 (e) This Agreement shall not in any way
affect the right of the 

 
Company to adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or
transfer all or any part of its business or assets. 
  
 7.
Adjustment in Option Shares. In the event of a subdivision of the outstanding Shares, a declaration of a dividend payable in Shares, a declaration of a dividend payable in a form other than Shares in an amount that has a material
effect on the price of Shares, a combination or consolidation of the outstanding Shares (by reclassification or otherwise) into a lesser number of Shares, a recapitalization, a spin-off or a similar occurrence, appropriate adjustments shall be made
to (i) the total number and/or kind of shares or securities subject to this Option and (ii) the Exercise Price in order to reflect such change and thereby preclude a dilution or enlargement of benefits hereunder. 
  
 8. Shareholder Rights. The holder of this Option shall not have
any shareholder rights with respect to the Option Shares until such person shall have exercised the Option, paid the Exercise Price and become a holder of record of the purchased Shares. 
  
 9. Manner of Exercising Option. 
  
 (a) In order to exercise this Option with respect to all or any part of the Option Shares for which this Option is at the
time exercisable, Optionee (or any other person or persons exercising the Option) must take the following actions: 
  
 (i) Pay the aggregate Exercise Price for the purchased Shares in one or more of the following forms: 
  
 (A) cash or check made payable to the Company; 
  
 (B) as permitted by applicable law, through a special sale and remittance
procedure pursuant to which Optionee (or any other person or persons exercising the Option) shall concurrently provide irrevocable written instructions (I) to a Company-designated brokerage firm (or in the case of an executive officer or Board
member of the Company, an Optionee-designated brokerage firm) to effect the immediate sale of the purchased Shares and remit to the Company, out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate Exercise
Price payable for the purchased Shares plus, if applicable, the amount necessary to satisfy the Company’s withholding obligations at the minimum statutory withholding rates and (II) to the Company to deliver the certificates for the purchased
Shares directly to such brokerage firm in order to complete the sale transaction; 
  
 (C) a promissory note payable to the Company, but only to the extent authorized by the Committee in accordance with Paragraph 13; and 
  
 (D) Shares held by Optionee (or any other person or persons exercising the Option) for the minimum period established by
the Committee and valued at Fair Market Value on the exercise date. 

 (ii) Furnish to the Company appropriate documentation that the person or persons exercising the Option
(if other than Optionee) have the right to exercise this Option. 
  
 (iii) Make appropriate arrangements with the Company (or Parent or Subsidiary employing or retaining Optionee) for the satisfaction of all tax withholding requirements applicable to the Option exercise. 
  
 (b) As soon as practical after the exercise date, the Company shall issue to
or on behalf of Optionee (or any other person or persons exercising this Option) a certificate for the purchased Option Shares, with the appropriate legends affixed thereto. 
  
 (c) In no event may this Option be exercised for any fractional Shares. 
  
 (d) Notwithstanding any other provisions of the Plan, this Agreement or any
other agreement to the contrary, if at the time this Option is exercised, Optionee is indebted to the Company (or any Parent or Subsidiary) for any reason, the following actions shall be taken, as deemed appropriate by the Committee: 
  
 (i) any Shares to be issued upon such exercise shall automatically be
pledged against Optionee’s outstanding indebtedness; and 
  
 (ii) if this Option is exercised in accordance with subparagraph 9(a)(i)(B) above, the after tax proceeds of the sale of Optionee’s Shares shall automatically be applied to the outstanding balance of Optionee’s indebtedness.

  
 10. Compliance with Laws and Regulations.

  
 (a) The exercise of this Option and the issuance of the
Option Shares upon such exercise shall be subject to compliance by the Company and Optionee with all applicable laws, regulations and rules relating thereto, including all applicable regulations of any stock exchange (or the Nasdaq National Market,
if applicable) on which the Shares may be listed for trading at the time of such exercise and issuance. 
  
 (b) The inability of the Company to obtain approval from any regulatory body having authority deemed by the Company to be necessary to the lawful issuance
and sale of any Shares pursuant to this Option shall relieve the Company of any liability with respect to the non-issuance or sale of the Shares as to which such approval shall not have been obtained. The Company, however, shall use its best efforts
to obtain all such approvals. 
  
 11. Successors and
Assigns. Except to the extent otherwise provided in Paragraphs 3 and 6, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and assigns and Optionee, Optionee’s assigns and
the legal representatives, heirs and legatees of Optionee’s estate. 
  
 12. Notices. Any notice required to be given or delivered to the Company under the terms of this Agreement shall be in writing and addressed to the Company at its 

 
principal corporate offices. Any notice required to be given or delivered to Optionee shall be in writing and addressed to Optionee at the address maintained
for Optionee in the Company’s records. All notices shall be deemed effective upon personal delivery or upon deposit in the U.S. mail, postage prepaid and properly addressed to the party to be notified. 
  
 13. Financing. The Committee may, in its absolute discretion
and without any obligation to do so, permit Optionee to pay the Exercise Price for the purchased Option Shares by delivering a full-recourse promissory note payable to the Company. The terms of any such promissory note (including the interest rate,
the requirements for collateral and the terms of repayment) shall be established by the Committee in its sole discretion. 
  
 14. Construction. The Notice, this Agreement, and the Option evidenced hereby (a) are made and granted pursuant to the Plan and are in
all respects limited by and subject to the terms of the Plan, and (b) constitute the entire agreement between Optionee and the Company on the subject matter hereof and supercede all proposals, written or oral, an all other communications
between the parties related to the subject matter. All decisions of the Committee with respect to any question or issue arising under the Notice, this Agreement or the Plan shall be conclusive and binding on all persons having an interest in this
Option. 
  
 15. Governing Law. The interpretation,
performance and enforcement of this Agreement shall be governed by the laws of the State of California without resort to the conflict of laws principles thereof. 
  
 16. Excess Shares. If the Option Shares covered by this Agreement exceed, as of the Grant Date, the number of
Shares which may without shareholder approval be issued under the Plan, then this Option shall be void with respect to those excess shares, unless shareholder approval of an amendment sufficiently increasing the number of Shares issuable under the
Plan is obtained in accordance with the provisions of the Plan and all applicable laws, regulations and rules. 
  
 17. Additional Terms Applicable to an Incentive Stock Options. In the event this Option is designated an Incentive Stock Option in the
Notice, the following terms and conditions shall also apply to the Option: 
  
 (a) This Option shall cease to qualify for favorable tax treatment as an Incentive Stock Option if (and to the extent) this Option is exercised for one or more Option Shares: (A) more than three (3) months
after the date Optionee ceases to be an Employee for any reason other than death or Disability or (B) more than twelve (12) months after the date Optionee ceases to be an Employee by reason of Disability. 
  
 (b) Even if this Option is designated as an Incentive Stock Option, if the
Shares subject to this Option (and all other Incentive Stock Options granted to Optionee by the Company or any Parent or Subsidiary, including under other plans of the Company) that first become exercisable in any calendar year have an aggregate
Fair Market Value (determined for each Share as of the date of grant of the option covering 

 
such Share) in excess of $100,000, the Shares in excess of $100,000 shall be treated as subject to a Nonstatutory Stock Option in accordance all applicable
laws, regulations and rules. 
  
 18. Leave of
Absence. Unless otherwise determined by the Committee, the following provisions shall apply upon the Optionee’s commencement of an authorized leave of absence: 
  
 (a) The Exercise Schedule in effect under the Notice shall be frozen as of the first day of the authorized leave, and this
Option shall not become exercisable for any additional installments of the Option Shares during the period Optionee remains on such leave. 
  
 (b) If the Option is designated as an Incentive Stock Option in the Notice and if the leave of absence continues for more than ninety (90) days, then
this Option shall automatically convert to a Nonstatutory Stock Option at the end of the three (3)-month period measured from the ninety-first (91st) day of such leave, unless the Optionee’s right to return to active work is guaranteed by
law or by a contract. 
  
 (c) In no event shall this Option become
exercisable for any additional Option Shares or otherwise remain outstanding if Optionee does not resume Service prior to the Expiration Date of the Option term. 
  
 19. Further Instruments. The parties agree to execute such further instruments and to take such further action
as may be reasonably necessary to carry out the purposes and intent of this Agreement. 
  
 20. Authorization to Release Necessary Personal Information. 
  
 (a) Optionee hereby authorizes and directs Optionee’s employer to collect, use and transfer in electronic or other form, any personal information
(the “Data”) regarding Optionee’s employment, the nature and amount of Optionee’s compensation and the fact and conditions of Optionee’s participation in the Plan (including, but not limited to, Optionee’s name, home
address, telephone number, date of birth, social security number (or any other social or national identification number), salary, nationality, job title, number of Shares held and the details of all options or any other entitlement to Shares
awarded, cancelled, exercised, vested, unvested or outstanding) for the purpose of implementing, administering and managing Optionee’s participation in the Plan. Optionee understands that the Data may be transferred to the Company or any of its
Subsidiaries, or to any third parties assisting in the implementation, administration and management of the Plan, including any requisite transfer to a broker or other third party assisting with the exercise of Options under the Plan or with whom
Shares acquired upon exercise of this Option or cash from the sale of such shares may be deposited. Optionee acknowledges that recipients of the Data may be located in different countries, and those countries may have data privacy laws and
protections different from those in the country of Optionee’s residence. Furthermore, Optionee acknowledges and understands that the transfer of the Data to the Company or 

 
any of its Subsidiaries, or to any third parties is necessary for Optionee’s participation in the Plan. 
  
 (b) Optionee may at any time withdraw the consents herein, by contacting
Optionee’s local human resources representative in writing. Optionee further acknowledges that withdrawal of consent may affect Optionee’s ability to exercise or realize benefits from the Option, and Optionee’s ability to participate
in the Plan. 
  
 21. No Entitlement or Claims for
Compensation. 
  
 (a) Optionee’s rights, if any, in
respect of or in connection with this Option or any other Award is derived solely from the discretionary decision of the Company to permit Optionee to participate in the Plan and to benefit from a discretionary Award. By accepting this Option,
Optionee expressly acknowledges that there is no obligation on the part of the Company to continue the Plan and/or grant any additional Awards to Optionee. This Option is not intended to be compensation of a continuing or recurring nature, or part
of Optionee’s normal or expected compensation, and in no way represents any portion of a Optionee’s salary, compensation, or other remuneration for purposes of pension benefits, severance, redundancy, resignation or any other purpose.

  
 (b) Neither the Plan nor this Option or any other Award
granted under the Plan shall be deemed to give Optionee a right to remain an Employee, Consultant or director of the Company, a Parent or a Subsidiary or an Affiliate. The Company and its Parents and Subsidiaries and Affiliates reserve the right to
terminate the Service of Optionee at any time, with or without cause, and for any reason, subject to applicable laws, the Company’s Articles of Incorporation and Bylaws and a written employment agreement (if any), and Optionee shall be deemed
irrevocably to have waived any claim to damages or specific performance for breach of contract or dismissal, compensation for loss of office, tort or otherwise with respect to the Plan, this Option or any outstanding Award that is forfeited and/or
is terminated by its terms or to any future Award. 
  
 (c)
Optionee agrees that the Company may require Options granted hereunder be exercised with, and the Option Shares held by, a broker designated by the Company. In addition, Optionee agrees that his or her rights hereunder shall be subject to set-off by
the Company for any valid debts the Optionee owes to the Company. 

 CISCO SYSTEMS, INC. 
 STOCK GRANT AGREEMENT 
  
 This Stock Grant Agreement (the “Agreement”) is made and entered into as of                     , 200   by
and between Cisco Systems, Inc., a California corporation (the “Company”), and
                             pursuant to the Cisco Systems, Inc. 2005 Stock Incentive Plan (the
“Plan”). To the extent any capitalized terms used in this Agreement are not defined, they shall have the meaning ascribed to them in the Plan. In the event of a conflict between the terms and provisions of the Plan and the terms and
provisions of this Agreement, the Plan terms and provisions shall prevail. 
  
 In consideration of the mutual agreements herein contained and intending to be legally bound hereby, the parties agree as follows: 
  
 1. Restricted Shares. Pursuant to the Plan, the Company hereby transfers to you, and you hereby accept from
the Company, a Stock Grant Award consisting of                      Shares (the “Restricted Shares”), on the terms and
conditions set forth herein and in the Plan. 
  
 2. Vesting
of Restricted Shares. So long as your Service continues, the Restricted Shares shall vest in accordance with the following schedule: twenty percent (20%) of the total number of Restricted Shares issued pursuant to this Agreement shall
vest on                         , 20     (the first annual anniversary of the vesting
commencement date) and on each annual anniversary thereafter, unless otherwise provided by the Plan or Section 3 below. In the event of the termination of your Service for any reason, all unvested Restricted Shares shall be immediately
forfeited without consideration. For purposes of facilitating the enforcement of the provisions of this Section 2, the Company may issue stop-transfer instructions on the Restricted Shares to the Company’s transfer agent, or otherwise hold
the Restricted Shares in escrow, until the Restricted Shares have vested and you have satisfied all applicable obligations with respect to the Restricted Shares, including any applicable tax withholding obligations set forth in Section 5 below.
Any new, substituted or additional securities or other property which is issued or distributed with respect to the unvested Restricted Shares shall be subject to the same terms and conditions as are applicable to the unvested Restricted Shares under
this Agreement and the Plan. 
  
 3. Special
Acceleration. 
  
 (a) To the extent the Restricted Shares
are outstanding at the time of a Corporate Transaction, but not otherwise fully vested, such Restricted Shares shall automatically accelerate immediately prior to the effective date of the Corporate Transaction and shall become vested in full at
that time. No such acceleration, however, shall occur if and to the extent: (i) this Stock Grant Agreement is, in connection with the Corporate Transaction, assumed by the successor corporation (or parent thereof), or (ii) the Restricted
Shares are replaced with a cash incentive program of the successor corporation which preserves the Fair Market Value of the Restricted Shares at the time of the Corporate Transaction and provides for subsequent pay-out in accordance with the vesting
schedule set forth in Section 2 above. 

 (b) Immediately following the effective date of the Corporate Transaction, this Stock Grant Agreement
shall terminate and cease to be outstanding, except to the extent assumed by the successor corporation (or parent thereof) in connection with the Corporate Transaction. 
  
 (c) If this Stock Grant Agreement is assumed in connection with a Corporate Transaction, then the Committee shall
appropriately adjust the number of shares and the kind of shares or securities covered by this Stock Grant Agreement immediately after such Corporate Transaction. 
  
 (d) To the extent the Restricted Shares are outstanding at the time of a Change in Control but not otherwise fully vested,
such Restricted Shares shall automatically accelerate immediately prior to the effective date of the Change in Control and shall become vested in full at that time. 
  
 (e) This Stock Grant Agreement shall not in any way affect the right of the Company to adjust, reclassify, reorganize or
otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate, sell or transfer all or any part of its business or assets. 
  
 4. Restriction on Election to Recognize Income in the Year of Grant. Under Section 83 of the Code, the Fair Market Value of the Restricted
Shares on the date the Restricted Shares vest will be taxable as ordinary income at that time. You understand, acknowledge and agree that, as a condition to the grant of this Award, you may not elect to be taxed at the time the Restricted Shares are
acquired by filing an election under Section 83(b) of the Code with the Internal Revenue Service. 
  
 5. Withholding Taxes. You agree to satisfy any applicable withholding tax obligations that arise in connection with the Restricted Shares by
(i) having the Company withhold Shares from the Restricted Shares held in escrow, or (ii) tendering Shares to the Company, in either case, equal in value to the amount necessary to satisfy any such withholding tax obligation. Such Shares shall be
valued based on the Fair Market Value as of the day prior to the date that the amount of tax to be withheld is to be determined under applicable law. The Company shall not be required to release the Restricted Shares from the stop-transfer
instructions or escrow unless and until such obligations are satisfied. 
  
 6. Tax Advice. You represent, warrant and acknowledge that the Company has made no warranties or representations to you with respect to the income tax consequences of the transactions contemplated by this Agreement, and you
are in no manner relying on the Company or the Company’s representatives for an assessment of such tax consequences. YOU UNDERSTAND THAT THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. YOU SHOULD CONSULT YOUR OWN TAX ADVISOR REGARDING ANY
STOCK GRANT AWARD. NOTHING STATED HEREIN IS INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, FOR THE PURPOSE OF AVOIDING TAXPAYER PENALTIES. 

 7. Non-Transferability of Restricted Shares. Except as permitted by applicable law,
Restricted Shares which have not vested pursuant to Section 2 above shall not be anticipated, assigned, attached, garnished, optioned, transferred or made subject to any creditor’s process, whether voluntarily or involuntarily or by the
operation of law. However, this Section 7 shall not preclude you from designating a beneficiary who will receive any vested Restricted Shares in the event of the your death, nor shall it preclude a transfer of vested Restricted Shares by will
or by the laws of descent and distribution. 
  
 8.
Restriction on Transfer. Regardless of whether the transfer or issuance of the Restricted Shares has been registered under the Securities Act or has been registered or qualified under the securities laws of any state, the Company may
impose additional restrictions upon the sale, pledge, or other transfer of the Restricted Shares (including the placement of appropriate legends on stock certificates and the issuance of stop-transfer instructions to the Company’s transfer
agent) if, in the judgment of the Company and the Company’s counsel, such restrictions are necessary in order to achieve compliance with the provisions of the Securities Act, the securities laws of any state, or any other law. 
  
 9. Stock Certificate Restrictive Legends. Stock certificates
evidencing the Restricted Shares may bear such restrictive legends as the Company and the Company’s counsel deem necessary under applicable law or pursuant to this Agreement. 
  
 10. Representations, Warranties, Covenants, and Acknowledgments. You hereby agree that in the event the
Company and the Company’s counsel deem it necessary or advisable in the exercise of their discretion, the transfer or issuance of the Restricted Shares may be conditioned upon you making certain representations, warranties, and acknowledgments
relating to compliance with applicable securities laws. 
  
 11.
Voting and Other Rights. Subject to the terms of this Agreement, you shall have all the rights and privileges of a shareholder of the Company while the Restricted Shares are subject to stop-transfer instructions, or otherwise held in
escrow, including the right to vote and to receive dividends (if any). 
  
 12. Authorization to Release Necessary Personal Information. 
  
 (a) You hereby authorize and direct your employer to collect, use and transfer in electronic or other form, any personal information (the “Data”) regarding your employment, the nature and amount of your
compensation and the facts and conditions of your participation in the Plan (including, but not limited to, your name, home address, telephone number, date of birth, social security number (or any other social or national identification number),
salary, nationality, job title, number of Shares held and the details of all Awards or any other entitlement to Shares awarded, cancelled, exercised, vested, unvested or outstanding) for the purpose of implementing, administering and managing your
participation in the Plan. You understand that the Data may be transferred to the Company or any of its Subsidiaries, or to any third parties assisting in the implementation, administration and management of the Plan, including any requisite
transfer to a broker or other third party assisting with the administration of this Stock Grant Award under the Plan or with whom Shares acquired pursuant to this Stock Grant Award or cash from the sale of such shares may be deposited. You
acknowledge that recipients of the Data may be located in different countries, and those countries may have data privacy laws and protections 

 
different from those in the country of your residence. Furthermore, you acknowledge and understand that the transfer of the Data to the Company or any of its
Subsidiaries, or to any third parties is necessary for your participation in the Plan. 
  
 (b) You may at any time withdraw the consents herein by contacting your local human resources representative in writing. You further acknowledge that withdrawal of consent may affect your ability to exercise or
realize benefits from this Stock Grant Award, and your ability to participate in the Plan. 
  
 13. No Entitlement or Claims for Compensation. 
  
 (a) Your rights, if any, in respect of or in connection with this Stock Grant Award or any other Award is derived solely from the discretionary decision of the Company to permit you to participate in the Plan and to
benefit from a discretionary Award. By accepting this Stock Grant Award, you expressly acknowledge that there is no obligation on the part of the Company to continue the Plan and/or grant any additional Awards to you. This Stock Grant Award is not
intended to be compensation of a continuing or recurring nature, or part of your normal or expected compensation, and in no way represents any portion of a your salary, compensation, or other remuneration for purposes of pension benefits, severance,
redundancy, resignation or any other purpose. 
  
 (b) Neither the
Plan nor this Stock Grant Award or any other Award granted under the Plan shall be deemed to give you a right to remain an Employee, Consultant or director of the Company, a Parent, a Subsidiary or an Affiliate. The Company and its Parents and
Subsidiaries and Affiliates reserve the right to terminate your Service at any time, with or without cause, and for any reason, subject to applicable laws, the Company’s Articles of Incorporation and Bylaws and a written employment agreement
(if any), and you shall be deemed irrevocably to have waived any claim to damages or specific performance for breach of contract or dismissal, compensation for loss of office, tort or otherwise with respect to the Plan, this Stock Grant Award or any
outstanding Award that is forfeited and/or is terminated by its terms or to any future Award. 
  
 (c) You agree that the Company may require that Restricted Shares be held by a broker designated by the Company. In addition, you agree that your rights hereunder shall be subject to set-off by the Company for any
valid debts you owe the Company. 
  
 14. Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California without regard to the conflict of laws principles thereof. 
  
 15. Notices. All notices, communications and documents under this Agreement shall be in writing. All notices,
communications, and documents directed to the Company and related to the Agreement, if not delivered by hand, shall be mailed to the Company’s principal executive office, Attention: Stock Administration. The current address of the
Company’s principal executive office is: 
  
 Cisco Systems, Inc. 
 170 West Tasman Drive 
 San Jose, CA 95134-1706 

 All notices, communications, and documents intended for you and related to this Agreement, if not delivered by hand,
shall be mailed to your address shown on the last page of this Agreement or such other address as you may specify by notice complying with this section. Notices, communications, and documents not delivered by hand shall be mailed by registered or
certified mail, return receipt requested, postage prepaid. All mailings and deliveries related to this Agreement shall be deemed received only when actually received. 
  
 16. Binding Effect. Subject to the limitations set forth in this Agreement, this Agreement shall be binding
upon, and inure to the benefit of, the executors, administrators, heirs, legal representatives, successors, and assigns of the parties hereto. 
  
 17. Counterparts. This Agreement may be signed in counterparts with the same effect as if the signature to each such counterpart were upon a
single instrument, and all counterparts shall be deemed an original of this Agreement. 
  
 18. Severability. If any provision of this Agreement is held to be unenforceable for any reason, it shall be adjusted rather than voided, if possible, in order to achieve the intent of the parties to the
extent possible. In any event, all other provisions of this Agreement shall be deemed valid and enforceable to the full extent possible. 
  
 *     *     *     * 
  
 (Signature Page Follows) 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on this
         day of                     , 200_. 
  
  

			
	CISCO SYSTEMS, INC.
		
	By:	 	 
	 	 	(Signature)
		
	Name:	 	 
		
	Title:	 	 

  
  
 RECIPIENT: 
  

			
	 
		
	By:	 	 
	 	 	(Signature)
		
	Address:	 	 
	
	 

			
		
	Telephone Number:	 	 
		
	Email Address:	 	 

 NON-EMPLOYEE DIRECTOR ELECTION UNDER THE 
 CISCO SYSTEMS, INC. 2005 STOCK INCENTIVE PLAN 
 ANNUAL RETAINER 

 
 I,
                        , being a non-employee member of the Board of Directors of Cisco Systems, Inc. (the
“Company”) hereby elect to receive (complete either (a) or (b) below): 
  

	(a)	            % (insert percentage between 25% and 100%) of my total annual retainer 

  

	(b)	$             (insert dollar amount between $18,750 and $75,000) of my total annual retainer

  
 in the form of a fully vested stock grant which will be granted
under the 2005 Stock Incentive Plan (the “Plan”) on                              based on
the closing value of the Company’s common stock on that date. I understand that this election will be effective only if received by
                             on or before
             on              and is subject to, and contingent upon, the approval of the Plan by the Company’s
shareholders at the Company’s annual shareholder meeting to be held on November 15, 2005. I further understand that I will receive my annual retainer in the form of cash to the extent that I do not elect to receive it in the form of a
stock grant under the Plan and that I will receive the shares representing any such stock grant on, or as soon as practicable after, the date of the annual shareholder meeting. I further understand that my receipt of a stock grant will be taxed as
ordinary income to me based on the value of the shares on the date of grant. 
  
  
  

			
	
	    	

	Signature of Non-Employee Director	    	DateEmployment Agreement

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 This Employment Agreement (this “Agreement”) is
entered into this 20th day of February, 2006 (the “Effective Date”), by and between Alfred Mockett (“Employee”), an individual, and Motive, Inc., a Delaware corporation
(“Motive”). In consideration of the mutual promises expressed herein, Employee and Motive have agreed to the following terms and conditions. 
 1. EFFECTIVE DATE AND TERM. This Agreement will be effective as of the Effective Date, and will remain in effect for a term of three years, unless earlier
terminated in accordance with Section 5. Continued employment beyond the three-year term of this Agreement will not result in automatic renewal of this Agreement. Rather, to renew this Agreement, Motive and Employee must state their intention
to renew this Agreement in a writing signed by both Motive and Employee. 
 2. OFFICES AND
DUTIES. Motive agrees to employ Employee as its Chief Executive Officer, reporting solely and directly to the Board of Directors of Motive (the “Board”), and in such other capacities as the Board may reasonably
request. Motive also agrees to elect Employee to the office of Chairman of the Board and Employee shall serve in such capacity during the term of this Agreement so long as Employee is a member of the Board. Employee shall have those powers and
duties normally associated with his title and position as Chief Executive Officer and, if applicable, Chairman of the Board, as well as any other duties reasonably requested by the Board that are consistent with his position(s). Employee agrees that
Employee will abide by all of Motive’s policies, procedures and directives as may be adopted, modified or issued by Motive from time to time. Without limiting the generality of the foregoing, Employee will be expected to use his reasonable best
efforts to perform the necessary due diligence to be able to execute representation letters and certifications with respect to Motive’s financial statements and periodic reports filed with the United States Securities and Exchange Commission,
including those applicable to periods pre-dating the commencement of Employee’s employment. 
 3. BOARD
MEMBERSHIP. While Employee is employed by Motive, Motive will nominate and recommend to its stockholders that Employee be elected as a member of the Board at no additional compensation. In addition, Employee shall be appointed to fill
the vacancy on the Board created upon the resignation of Employee’s predecessor (a Class I Director). Employee will resign from the Board upon termination of employment at the request of the Board. 
 4. COMPENSATION AND BENEFITS. While Employee is employed by Motive, Employee will be entitled to the
following compensation and benefits: 
 (a) Base Salary. Motive will pay Employee a Base Salary at a monthly rate of
$29,166.67 ($350,000 annually), less applicable withholdings and deductions (“Base Salary”). Employee’s Base Salary shall be subject to review and potential adjustment, as determined by the Board or the Compensation
Committee thereof. “Base Salary” shall not include any payment or other benefit which is denominated as or is in the nature of a bonus, incentive payment, profit-sharing payment, retirement or pension accrual, 

  

 PAGE 1 OF 23 

 
insurance benefit, other fringe benefit or expense allowance, whether or not taxable to Employee as income. The term Base Salary shall include any increase
therein for purposes of this Agreement. 
 (b) Vacation. Employee shall accrue vacation commensurate with
Employee’s position, which shall be no less that four weeks per year. The accrual and carry-over (if any) of Employee’s vacation shall be in accordance with Motive’s regular vacation accrual practices, as such practices are adopted,
modified or implemented from time to time. 
 (c) Benefits. Subject to applicable eligibility requirements, Employee
shall be entitled to participate in all employee benefit plans or programs of Motive that are generally available to any of its senior level executive employees (health care program, etc.). 
 (d) Bonuses. Employee shall be eligible to receive an annual Target Bonus of up to 100% of his annual Base Salary (the
“Target Bonus”), as determined by the Board (or the Compensation Committee thereof) based on the achievement of individual and company performance objectives which shall be established by the Board (or the Compensation
Committee thereof) after consultation with Employee (the “Performance Objectives”). The Performance Objectives for any given year shall be communicated to Employee in writing within ninety (90) days of the commencement
of such year. The Target Bonus will be paid to Employee within sixty (60) days after the end of the fiscal year in respect of which the bonus is payable. Target Bonus amounts paid shall be subject to retroactive adjustment if, after receipt of
audited financial statements, a given bonus amount is determined by the Board (or the Compensation Committee thereof) to be in excess of the amount supported by Motive’s audited financial statements. 
 (e) Director’s and Officer’s Insurance Coverage. Employee shall have the benefit of such directors’ and
officers’ insurance coverage as Motive shall from time to time obtain, but in no event less than that provided to any other director or officer of Motive. 
 (f) Indemnification. Motive will provide Employee with its standard indemnification agreement, which shall provide that Employee
shall be indemnified to the maximum extent permitted by applicable law. 
 (g) Relocation Expenses. If Employee elects
to move his family to Austin, Texas within eighteen (18) months of the Effective Date, Motive will cover his relocation expenses including, without limitation, closing costs on the sale of Employee’s home, all moving expenses, packing and
unpacking of all personal items, etc., with a tax gross-up (for U.S. federal and, if applicable, state income and employment taxes) on that portion of such costs and expenses that is not deductible on Employee’s U.S. federal income tax return.
The maximum amount payable by Motive pursuant to this Section 4(g) shall be $100,000. 
  

 PAGE 2 OF 23 

 (h) Temporary Living Expenses. Motive shall reimburse or pay for Employee’s
reasonable temporary living expenses in Austin, Texas during the six (6) month period immediately following the Effective Date, subject in the case of reimbursements to submission of reasonable supporting documentation, including an apartment
and rental car, plus one weekly round trip air fare to Virginia. 
 (i) Business Expenses. Motive shall reimburse
Employee for all reasonable business expenses incurred by him in the performance of his duties on behalf of Motive, subject to submission of reasonable supporting documentation. 
 (j) Travel Expenses. Motive shall reimburse Employee for all reasonable travel expenses incurred by him in the performance of his
duties on behalf of Motive (including business class air travel), subject to the submission of reasonable supporting documentation. 
 (k) Attorneys’ Fees. Motive shall pay Employee’s reasonable attorneys’ fees incurred in connection with the contemplation, preparation, negotiation and execution of this Agreement, up to a maximum of $10,000.

 (l) Equity Awards. Employee shall be granted a seven-year option to purchase 750,000 shares of Motive’s common
stock, par value $.001 per share, on the terms and conditions set forth in the Non-Qualified Stock Option Agreement (the “Option Agreement”) to be entered into by Motive and Employee on the date hereof. Employee shall also
receive a Restricted Stock grant of 200,000 shares of Motive’s common stock, par value $.001 per share, on the terms and conditions set forth in the Restricted Stock Agreement to be entered into by Motive and Employee on or about the date
hereof. In addition, in year two and three of this Agreement, additional performance based option grants of 100,000 shares will be granted per year, subject to the satisfaction of performance criteria established by the Board or the Compensation
Committee thereof, and subject to the same terms and conditions as set forth in the Option Agreement. 
 (m)
Section 16 Filings. Motive shall provide Employee with reasonable assistance with the preparation and filing of Forms 3, 4 and 5, as applicable, under the Exchange Act (as defined below) in the manner consistent with the assistance
provided to other director or executive officers of Motive. 
 5. TERMINATION. This Agreement and Employee’s employment
may be terminated by either party at any time and for any reason, subject to the following provisions: 
 (a) Termination
by Employee. Employee agrees that if Employee intends to terminate this Agreement or Employee’s employment for any reason, Employee will give Motive at least thirty (30) days’ advance written notice of such termination;
provided, that if the termination is for Good Reason, the written notice shall so state and shall state such reason. 
 (i) If Employee terminates Employee’s employment and this Agreement for Good Reason and gives Motive the requisite notice of termination, and subsequently executes (within a reasonable period of time) a Release (as defined below),
Motive shall (A) pay Employee the Accrued Benefits (as defined below) within fifteen (15) days of such termination, and (B) except as otherwise provided in Section 6(b), and subject to the receipt of the executed Release, shall
pay severance in accordance with the terms of Section 5(c). 
  

 PAGE 3 OF 23 

 (ii) If Employee terminates Employee’s employment and this Agreement but does not
satisfy any or all of the conditions of Section 5(a)(i) above for any reason, Employee shall only be entitled to receive: (1) payment for Employee’s Base Salary (less applicable deductions and withholdings) through the date this
Agreement is terminated, (2) payment, if applicable, for the prior year’s Target Bonus earned by Employee that has not been paid by Motive as of the date this Agreement is terminated, (3) payment for unused vacation (less applicable
deductions and withholdings) that has accrued as of the date this Agreement is terminated and (4) payment for any expenses due to Employee pursuant to Sections 4(g)-(k) that have not been paid by Motive as of the date this Agreement is
terminated; and shall not be entitled to receive any other payments or benefits from Motive of any kind under this Agreement or otherwise except as required by law or pursuant to the terms of any benefit plan (such payments collectively, the
“Accrued Benefits”), which shall be paid by Motive to Employee within fifteen (15) days of such termination. 
 (b) Termination by Motive. Motive may terminate this Agreement and Employee’s employment at any time, with or without Cause, provided, that no termination with Cause shall occur unless authorized by
a majority of the disinterested members of the Board. If termination is with Cause, Motive may terminate Employee with or without notice, but if termination is without Cause, Motive will give Employee at least thirty (30) days’ advance
written notice of such termination. 
 (i) If Motive terminates Employee’s employment and this Agreement without Cause
and Employee subsequently executes (within a reasonable period of time) a Release, Motive shall (A) pay Employee the Accrued Benefits within fifteen (15) days of such termination, and (B) except as otherwise provided in
Section 6(b), and subject to the receipt of the executed Release, shall pay severance in accordance with the terms of Section 5(c). 
 (ii) Notwithstanding any other provision of this Agreement to the contrary, Motive may terminate this Agreement and Employee’s employment for Cause without advance notice, payment or penalty of any kind. In such
a case, Employee shall only be entitled to receive the Accrued Benefits, which shall be paid by Motive to Employee within fifteen (15) days of such termination. 
  

 PAGE 4 OF 23 

 (c) Severance. If Motive is required to pay Employee severance by the express
terms of Section 5(a)(i) or 5(b)(i) above, Motive shall pay to Employee an amount equal to: 
 (i) Employee’s
aggregate monthly Base Salary for a period of twelve months (less applicable withholdings and deductions), plus 
 (ii) If
Employee intends to continue his medical coverage under COBRA, the aggregate amount of any COBRA payments necessary to be paid by Employee in order for Employee and his dependents to obtain medical insurance coverage during the twelve-month period
immediately following the termination of this Agreement, plus 
 (iii) A pro rated portion of Employee’s Target Bonus
based upon the number of full calendar quarters that Employee was actively employed during the year of termination and assuming for purposes thereof that full achievement of all performance targets or metrics were met by both Employee and Motive
during such year; 
 such amount shall be payable in twelve (12) equal monthly installments, the first of which shall be made within
seven (7) days of the receipt by Motive of a Release from Employee and thereafter on each succeeding monthly anniversary of such initial payment date; provided, however, that Motive will consult with Employee prior to making any
payment pursuant to this Section 5(c) and will work with Employee to conform the payment procedures set forth in this Section 5(c) so as to minimize any adverse tax implications to Employee under Section 409A of the Code (as defined
below). The parties intent in the preceding sentence is to conform the payment provisions of this Section 5(c) so as to avoid subjecting any amounts due to Employee under this Section 5(c) to Section 409A of the Code once final
regulations related to Section 409A of the Code have been issued. Employee understands and agrees that Motive shall not be obligated to pay Employee severance of any kind except as required by Section 5(a)(i) or 5(b)(i) and as described in
this Section 5(c). 
 (d) Release Required. Employee understands that, notwithstanding any other provision of this
Agreement, if Employee does not execute a release in the form attached hereto as Exhibit A (a “Release”), Employee shall not be entitled to any severance payment of any kind following the termination of this Agreement or
Employee’s employment for any reason or any payment due as a result of a Change in Control (as defined below). 
 (e)
Good Reason. For purposes of this Agreement, “Good Reason” means any of the following: 
 (i)
Provided Employee has relocated his family to Austin, Texas, Motive (or its successor) relocates Employee’s primary work location by more than fifty (50) miles, such that Employee is required to relocate Employee’s 

  

 PAGE 5 OF 23 

 
permanent residence to continue rendering duties to Motive, and Employee does not consent to such relocation; 
 (ii) Motive (or its successor) reduces (1) Employee’s Base Salary below a monthly rate of $29,166.67 ($350,000 annually), less
applicable withholdings and deductions, without Employee’s written consent, or (2) the maximum Target Bonus; 
 (iii) Motive (or its successor) prevents Employee from participating in the same employee benefit plans or programs or fringe benefit policies of Motive that are generally available to any of its senior level executive employees (health
care program, etc.), subject to applicable eligibility requirements; 
 (iv) Motive (or its successor) fails to nominate
Employee for election as a director of Motive at any annual meeting of stockholders at which Employee’s class of directors is up for election or re-election; 
 (v) Motive (or its successor) requires Employee to devote a material portion of Employee’s time to the performance of duties that are
materially and substantially inconsistent with the status of Employee’s position with Motive, Employee provides the Board with written notice of Employee’s objection to said duties within thirty (30) days of said duties being required
of Employee, and Motive fails to cure the problem within thirty (30) days of the date the Board receives Employee’s written notice; 
 (vi) Any material breach of this Agreement by Motive, provided that Employee provides the Board with written notice of such breach, and Motive fails to cure such breach within thirty (30) days of the date
the Board receives Employee’s written notice; or 
 (vii) For any reason during the ninety (90)-day period immediately
following the six (6)-month anniversary of a Change in Control. 
 (f) Cause. For purposes of this Agreement,
“Cause” exists if: 
 (i) Employee shall have engaged in any act of material misconduct or dishonesty
in the performance of his duties to Motive, the Board shall have provided written notice of such act to Employee, and Employee shall have failed to cure same within thirty (30) days of the date the Employee receives the Board’s written
notice; 
 (ii) Employee shall have willfully failed to attend to his duties under this Agreement, the Board shall have
provided written notice of such failure to Employee, and Employee shall have failed to cure same within thirty (30) days of the date the Employee receives the Board’s written notice; 
  

 PAGE 6 OF 23 

 (iii) Employee shall have breached his fiduciary duties to Motive, the Board shall have
provided written notice of such breach to Employee, and Employee shall have failed to cure same within thirty (30) days of the date the Employee receives the Board’s written notice; 
 (iv) Employee shall have committed any act of fraud or embezzlement against Motive; 
 (v) Employee shall have materially breached this Agreement, the Board shall have provided written notice of such breach to Employee, and
Employee shall have failed to cure same within thirty (30) days of the date the Employee receives the Board’s written notice; 
 (vi) Employee pleads guilty or nolo contendere to or is convicted of any felony or misdemeanor involving theft, embezzlement, dishonesty or moral turpitude; or 
 (vii) Employee shall have failed to perform his duties, which results in a material adverse effect on Motive, the Board shall have
provided written notice of such failure to perform, and Employee shall have failed to cure same within thirty (30) days of the date the Employee receives the Board’s written notice. 
 (g) Cooperation. Upon the termination of Employee’s employment for any reason, Employee agrees to cooperate with Motive in
transitioning Employee’s responsibilities and duties as directed by Motive for a period of thirty (30) days or such longer period as Employee and Motive shall agree. 
 (h) Death. In the event Employee dies, this Agreement shall terminate as of the end of the month during which his death occurs,
with no obligation on the part of Motive for payment of any additional amounts other than the Accrued Benefits, which shall be paid by Motive to Employee within seven (7) days of the end of the month during which his death occurs. 

(i) Disability. If Employee, due to physical or mental illness, becomes so disabled as to be unable to perform substantially all
of Employee’s duties for a continuous period of six consecutive months, either party may by written notice terminate Employee’s employment effective as of the last day of the calendar month during which such notice is given, with no
obligation on the part of Motive for payment of any additional amounts other than the Accrued Benefits, which shall be paid by Motive to Employee within seven (7) days of the last day of the calendar month during which such notice is given.

  

 PAGE 7 OF 23 

 6. CHANGE IN CONTROL SEVERANCE
BENEFITS. 
 (a) For purposes of this Agreement, a “Change in Control” shall mean:

 (i) The consummation of a merger or consolidation of Motive with or into another entity or any other corporate
reorganization, if persons who were not stockholders of Motive immediately prior to such merger, consolidation or other reorganization beneficially own immediately after such merger, consolidation or other reorganization 50% or more of the voting
power of the outstanding securities of each of (1) the continuing or surviving entity and (2) any direct or indirect parent corporation of such continuing or surviving entity; 
 (ii) The sale, transfer or other disposition of all or substantially all of Motive’s assets; 
 (iii) A change in the composition of the Board, as a result of which fewer than 50% of the incumbent directors are directors who either
(1) had been directors of Motive on the date 24 months prior to the date of the event that may constitute a Change in Control (the “original directors”) or (2) were elected, or nominated for election, to the Board
with the affirmative votes of at least a majority of the aggregate of the original directors who were still in office at the time of the election or nomination and the directors whose election or nomination was previously so approved; or 

(iv) Any transaction as a result of which any person is the “beneficial owner” (as defined in Rule 13d-3 under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)), directly or indirectly, of securities of Motive representing at least 50% of the total voting power represented by Motive’s then outstanding voting securities. For
purposes of this Section 6(a)(iv), the term “person” shall have the same meaning as when used in Sections 13(d) and 14(d) of the Exchange Act but shall exclude (1) a trustee or other fiduciary holding securities
under an employee benefit plan of Motive or of a parent or subsidiary of Motive and (2) a corporation owned directly or indirectly by the stockholders of Motive in substantially the same proportions as their ownership of the common stock, par
value $.001 per share, of Motive. 
 A transaction shall not constitute a Change in Control if its sole purpose is to change the state of
Motive’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held Motive’s securities immediately before such transaction. 
 (b) If Employee’s employment with Motive is terminated without Cause by Motive or by Employee for Good Reason on or following a
Change in Control, in lieu of the severance payments described in Section 5(c), Motive shall pay to Employee (contingent on Employee signing a Release) an amount equal to: 
 (i) Employee’s aggregate monthly Base Salary for a period of twelve months (less applicable withholdings and deductions), plus

  

 PAGE 8 OF 23 

 (ii) If Employee intends to continue his medical coverage under COBRA, the aggregate
amount of any COBRA payments necessary to be paid by Employee in order for Employee and his dependents to obtain medical insurance coverage during the twelve-month period immediately following the termination of his employment, plus 
 (iii) A pro rated portion of Employee’s Target Bonus based upon the number of full calendar quarters that Employee was actively
employed during the year of termination and assuming for purposes thereof that full achievement of all performance targets or metrics were met by both Employee and Motive (or its successor) during such year; 
 such amount shall be paid in one lump sum payment, which shall be made within seven (7) days of the receipt by Motive of a Release from Employee;
provided, however, that Motive will consult with Employee prior to making any such payment pursuant to this Section 6(b) and will work with Employee to conform the payment procedures set forth in this Section 6(b) so as to
minimize any adverse tax implications to Employee under Section 409A of the Code (as defined below). The parties intent in the preceding sentence is to conform the payment provisions of this Section 6(b) so as to avoid subjecting any
amounts due to Employee under this Section 6(b) to Section 409A of the Code once final regulations related to Section 409A of the Code have been issued. 
 7. CERTAIN ADDITIONAL PAYMENTS BY MOTIVE. 
 (a) In the event that that all or any portion of any payment or distribution by Motive or any of its affiliates to or for the benefit of Employee in connection with a Change in Control, including under any stock
option or other agreement, plan, policy, program or arrangement (a “Payment”), would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the
“Code”) (or any successor provision thereto), by reason of being considered “contingent on a change in ownership or control” of Motive, within the meaning of Section 280G of the Code (or any successor provision
thereto), or any interest or penalties with respect to such tax (such tax, together with any such interest and penalties, being hereafter collectively referred to as the “Excise Tax”), then Employee shall be entitled to
receive an additional payment or payments (collectively, a “Gross-Up Payment”). The Gross-Up Payment shall be in an amount such that, after payment by Employee of all taxes (including any interest or penalties imposed with
respect to such taxes and including any Excise Tax) imposed upon the Gross-Up Payment, Employee retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payment; provided, however, that notwithstanding anything in
this Agreement to the contrary, in no event shall such Gross-Up Payment or any other payment in connection with this Section 7 exceed an aggregate of $1 million. 
 (b) Subject to the provisions of Section 7(f), all determinations required to be made under this Section 7, including whether an
Excise Tax is payable by Employee and the amount of such Excise Tax and whether a Gross-Up Payment is required to be paid by Motive to Employee and the amount of such Gross-Up Payment, if any, shall be made by 

  

 PAGE 9 OF 23 

 
a nationally recognized accounting firm (the “Accounting Firm”) selected by Motive and reasonably acceptable to Employee. Motive
shall direct the Accounting Firm to submit its determination and detailed supporting calculations to both Motive and Employee within thirty (30) days after the date on which Employee ceases to be an employee of Motive in a circumstance that
would require payments by Motive under Section 6(b), if applicable, and any such other time or times as may be requested by Motive or Employee. If the Accounting Firm determines that any Excise Tax is payable by Employee, Motive shall pay the
required Gross-Up Payment to Employee within five (5) business days after receipt of such determination and calculations with respect to such Gross-Up Payment. If the Accounting Firm determines that no Excise Tax is payable by Employee, it
shall, at the same time as it makes such determination, furnish Motive and Employee a written opinion to the effect that Employee has substantial authority not to report any Excise Tax on his federal income tax return. As a result of the uncertainty
in the application of Section 4999 of the Code (or any successor provision thereto) at the time of any determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have been made by Motive should have
been made (an “Underpayment”), consistent with the calculations required to be made hereunder. In the event that Motive exhausts or fails to pursue its remedies pursuant to Section 7(f) and Employee thereafter is
required to make a payment of any Excise Tax, Employee shall direct the Accounting Firm to determine the amount of the Underpayment that has occurred and to submit its determination and detailed supporting calculations to both Motive and Employee as
promptly as possible. Any such Underpayment shall be promptly paid by Motive to, or for the benefit of, Employee within five (5) business days after receipt of such determination and calculations. 
 (c) Motive and Employee shall each provide the Accounting Firm access to and copies of any books, records and documents in the possession
of Motive or Employee, as the case may be, reasonably requested by the Accounting Firm, and otherwise cooperate with the Accounting Firm in connection with the preparation and issuance of the determinations and calculations contemplated by this
Section 7. Any determination by the Accounting Firm as to the amount of any Gross-Up Payment or Underpayment shall be binding upon Motive and Employee; provided, that if Employee is ultimately required to pay an Excise Tax by the
Internal Revenue Service despite the opinion of such Accounting Firm, then Motive shall make the appropriate Gross-Up Payment contemplated herein. 
 (d) The federal income returns filed by Employee shall be prepared and filed on a consistent basis with the determination of the Accounting Firm with respect to the Excise Tax payable by Employee. Employee shall make
proper payment of the amount of any Excise Tax, and at the request of Motive, provide to Motive true and correct copies (with any amendments) of his federal income tax return as filed with the Internal Revenue Service and corresponding state and
local tax returns, if relevant, as filed with the applicable taxing authority, and such other documents reasonably requested by Motive, evidencing such payment. If prior to the filing of Employee’s federal income tax return, or corresponding
state or local tax return, if relevant, the Accounting Firm determines that 

  

 PAGE 10 OF 23 

 
the amount of the Gross-Up Payment should be reduced, Employee shall within five (5) business days of such determination pay to Motive the amount of
such reduction. 
 (e) The fees and expenses of the Accounting Firm for its services in connection with the determinations and
calculations contemplated by this Section 7 shall be borne by Motive. If such fees and expenses are initially paid by Employee, Motive shall reimburse Employee the full amount of such fees and expenses within five (5) business days after
receipt from Employee of a statement therefor and reasonable evidence of his payment thereof. 
 (f) Employee shall notify
Motive in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by Motive of a Gross-Up Payment. Such notification shall be given as promptly as practicable but no later than ten (10) business days
after Employee actually receives notice of such claim and Employee shall further apprise Motive of the nature of such claim and the date on which such claim is requested to be paid (in each case, to the extent known by Employee). Employee shall not
pay such claim prior to the earlier of (i) the expiration of the thirty (30)-day period following the date on which he gives such notice to Motive and (ii) the date that any payment of amount with respect to such claim is due. If Motive
notifies Employee in writing prior to the expiration of such period that it desires to contest such claim, Employee, subject to the provisions of Section 7(h) of this Agreement, shall: 
 (i) provide Motive with any written records or documents in his possession relating to such claim reasonably requested by Motive;

 (ii) take such action in connection with contesting such claim as Motive shall reasonably request in writing from time to
time, including without limitation accepting legal representation with respect to such claim by an attorney competent in respect of the subject matter and reasonably selected by Motive; 
 (iii) cooperate with Motive in good faith in order effectively to contest such claim; and 
 (iv) permit Motive to participate in any proceedings relating to such claim; 
 provided, however, that Motive shall bear and pay directly all costs and expenses (including interest and penalties) incurred in connection with
such contest and shall indemnify and hold harmless Employee, on an after-tax basis, for and against any Excise Tax or income tax, including interest and penalties with respect thereto, imposed as a result of such representation and payment of costs
and expenses. Without limiting the foregoing provisions of this Section 7(f), Motive shall control all proceedings taken in connection with the contest of any claim contemplated by this Section 7(f) and, at its sole option, may pursue or
forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim (provided, however, that Employee may participate therein at his own cost and expense) and may, at its 

  

 PAGE 11 OF 23 

 
option, either direct Employee to pay the tax claimed and sue for a refund or contest the claim in any permissible manner, and Employee agrees to prosecute
such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as Motive shall determine; provided, however, that if Motive directs Employee to pay the tax claimed
and sue for a refund, Motive shall advance the amount of such payment to Employee on an interest-free basis and shall indemnify and hold Employee harmless, on an after-tax basis, from any Excise Tax or income or other tax, including interest or
penalties with respect thereto, imposed with respect to such advance; and provided further, however, that any extension of the statute of limitations relating to payment of taxes for the taxable year of Employee with respect to which the
contested amount is claimed to be due is limited solely to such contested amount. Furthermore, Motive’s control of any such contested claim shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and
Employee shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service. 
 (g) If, after the receipt by Employee of an amount advanced by Motive pursuant to Section 7(f), Employee receives any refund with respect to such claim, Employee shall (subject to Motive’s complying with the requirements of
Section 7(f)) promptly pay to Motive the amount of such refund (together with any interest paid or credited thereon after any taxes applicable thereto). If, after the receipt by Employee of an amount advanced by Motive pursuant to
Section 7(f), a determination is made that Employee shall not be entitled to any refund with respect to such claim and Motive does not notify Employee in writing of its intent to contest such denial or refund prior to the expiration of thirty
(30) days after such determination, then such advance shall be forgiven and shall not be required to be repaid and the amount of any such advance shall offset, to the extent thereof, the amount of Gross-Up Payment required to be paid by Motive
to Employee pursuant to this Section 7. 
 (h) Any information provided by Executive to Motive under this Section 7
shall be treated confidentially by Motive and will not be provided by Motive to any other person than Motive’s professional advisors without Executive’s prior written consent except as required by law. 
 8. NO MITIGATION OBLIGATION. Motive hereby acknowledges that it will be difficult and may be impossible for
Employee to find reasonably comparable employment within a reasonable time period following the termination of Employee’s employment with Motive under circumstances that would require payments by Motive to Employee under Section 5(c) or
6(b). Accordingly, the payments pursuant to Section 5(c) or 6(b) hereunder by Motive to Employee in accordance with the terms of this Agreement are hereby acknowledged by Motive to be reasonable, and Employee will not be required to mitigate
the amount of any payment provided for thereunder by seeking other employment or otherwise, nor will any profits, income, earnings or other benefits from any source whatsoever create any mitigation, offset, reduction or any other obligation on the
part of Employee hereunder or otherwise. 
  

 PAGE 12 OF 23 

 9. WARRANTIES AND INDEMNITY. 
 (a) No Conflict. The parties represent and warrant to each other that they are free to enter into the terms of this Agreement and
that neither party has any obligations to any other legal entity or otherwise that are inconsistent with any of the provisions of this Agreement. 
 (b) No Disclosure, Misuse, or Removal; Proprietary Information Agreement. Employee further represents and warrants that Employee: (i) has not and will not disclose to Motive any confidential business
information or trade secrets belonging to any other legal entity; (ii) will not and does not intend to use any confidential business information or trade secrets belonging to any other legal entity in connection with Employee’s employment
with Motive; and (iii) has not removed any books, papers, or records belonging to any other legal entity, including, without limitation, any documents containing any confidential business information, business plans, confidential customer
information, or confidential or proprietary information about any other legal entity’s products or services. Employee has or will execute Motive’s standard Proprietary Information Agreement, a copy of which has previously been provided to
Employee. 
 (c) Indemnification. Employee further agrees that in the event of a breach by Employee of the foregoing
representations and warranties, Employee will indemnify Motive for any and all liability and losses including, without limitation, damages payable to third parties, consequential damages, including losses, lost profits, costs and attorneys’
fees, that Motive may incur as a result of such breach. 
 10. CONFIDENTIALITY AND
NONDISCLOSURE. Immediately upon execution of this Agreement and subsequently in the course of Employee’s employment, Motive promises to provide Employee with certain information, technical data and know-how regarding the business
of Motive and its affiliates and their products, all of which is confidential and not generally available to the public (hereinafter referred to as “Confidential Information”). Employee agrees to receive, hold and treat all
Confidential Information received from Motive and its affiliates as confidential and secret and agrees to protect the secrecy of said Confidential Information. Employee agrees that the Confidential Information will be disclosed only to those persons
who are required to have such knowledge in connection with their work for Motive and that such Confidential Information will not be disclosed to others without the prior written consent of Motive. The provisions hereof shall not be applicable to:
(a) information which at the time of disclosure to Employee is a matter of public knowledge; or (b) information which, after disclosure to Employee, becomes public knowledge other than through a breach of this Agreement. Unless the
Confidential Information shall be of the type set forth in the preceding sentence, Employee shall not use such Confidential Information for his own benefit or for a third party’s or parties’ benefit at any time. Upon termination of
employment, Employee will return all books, records and other materials provided to or acquired by Employee during the course of employment which relate in any way to Motive or its business. If Employee is requested or become legally compelled (by
oral questions, interrogatories, requests for information or documents, subpoena, civil or criminal investigative demand, or similar process) or is required by a regulatory body to make any disclosure that is prohibited or otherwise constrained by
this 

  

 PAGE 13 OF 23 

 
Agreement, Employee will provide Motive with prompt notice of such request so that it may seek an appropriate protective order or other appropriate remedy.
Subject to the foregoing, Employee may furnish that portion (and only that portion) of the Confidential Information that, in the written opinion of its counsel reasonably acceptable to Motive, Employee is legally compelled or is otherwise required
to disclose or else stand liable for contempt or suffer other material censure or material penalty; provided, however, that Employee must use reasonable efforts to obtain reliable assurance that confidential treatment will be accorded
any Confidential Information so disclosed. The obligations imposed upon Employee by this Section 10 shall survive the expiration or termination of this Agreement. 
 11. PROPRIETARY INFORMATION; INVENTIONS. 
 (a)
Motive shall own all right, title and interest (including patent rights, copyrights, sui generis rights, trade secret rights, mask work rights and other rights throughout the world) relating to any and all inventions (whether or not patentable),
works of authorship, mask works, designs, know-how, ideas and information made or conceived or reduced to practice, in whole or in part, by Employee during the term of Employee’s employment with Motive, and that were created within the scope of
my employment with Motive or relate to Motive or the business or demonstrably anticipated business of Company, to the fullest extent allowed by law (collectively “Inventions”) and Employee will promptly disclose all
Inventions to Motive. Employee hereby makes all assignments necessary to accomplish the foregoing. Employee shall further assist Motive, at Motive’s expense, to further evidence, record and perfect such assignments, and to perfect, obtain,
maintain, enforce, and defend any rights specified to be so owned or assigned. Employee hereby irrevocably designates and appoints Motive as its agents and attorneys-in-fact to act for and in Employee’s behalf to execute and file any document
and to do all other lawfully permitted acts to further the purposes of the foregoing with the same legal force and effect as if executed by Employee. If Employee wishes to clarify that something created by Employee prior to his employment that
relates to Motive’s actual or proposed business is not within the scope of this Agreement, Employee has listed it on Appendix A. If anything created by Employee prior to his employment relates in any way to Company or the business
or demonstrably anticipated business of Company as of the date of this Agreement, Employee has listed it on Appendix A. If Employee uses or (except pursuant to this Section 11(a)) discloses Employee’s own or any third
party’s confidential information or intellectual property when acting within the scope of Employee’s employment or otherwise on behalf of Motive, Motive will have and Employee hereby grants Motive a perpetual, irrevocable, worldwide
royalty-free, non-exclusive, sublicensable right and license to exploit and exercise all such confidential information and intellectual property rights to the fullest extent that Employee has the right to grant such a license. 
 (b) To the extent allowed by law, Section 11(a) includes all rights of paternity, integrity, disclosure and withdrawal and any other
rights that may be known as or referred to as “moral rights,” “artist’s rights,” “droit moral,” or the like (collectively “Moral Rights”). To the extent Employee retains any such Moral
Rights under applicable law, Employee hereby waives such Moral Rights and consents to any action with respect to 

  

 PAGE 14 OF 23 

 
such Moral Rights by or authorized by Motive. Employee will confirm any such waivers and consents from time to time as requested by Motive. 
 (c) Employee agrees that all Inventions and all other business, technical and financial information (including, without limitation, the
identity of and information relating to customers, consultants or employees) he develops, learns or obtains during the term of his employment that relate to Motive or the business or demonstrably anticipated business of Motive or that are received
by or for Motive in confidence, constitute “Proprietary Information.” Employee will hold in confidence and not disclose or, except within the scope of Employee’s employment, use any Proprietary Information. However,
Employee shall not be obligated under this paragraph with respect to information Employee can document is or becomes readily publicly available without restriction through no fault of Employee. Upon termination of Employee’s employment,
Employee will promptly return to Motive all items containing or embodying Proprietary Information (including all copies), except that Employee may keep Employee’s personal copies of (i) Employee’s compensation records and any records
from my personnel file that have been given to Employee, (ii) materials distributed to shareholders generally and (iii) this Agreement. Employee also recognizes and agrees that Employee has no expectation of privacy with respect to
Motive’s telecommunications, networking or information processing systems (including, without limitation, stored computer files, e-mail messages and voice messages) and that Employee’s activity and any files or messages on or using any of
those systems may be monitored at any time without notice. 
 (d) The obligations imposed upon Employee by this
Section 11 shall survive the expiration or termination of this Agreement and Employee agrees that Company is entitled to communicate Employee’s obligations under this Agreement to any future employer or potential employer of Employee.

 12. NON-COMPETITION; AND NON-SOLICITATION;
NON-INTERFERENCE. Employee acknowledges that the services Employee will render are of a special and unusual character with a unique value to Motive, the loss of which cannot adequately be compensated by damages in
action at law. In consideration of and ancillary to Motive’s agreement to provide Employee with Confidential Information and other consideration specified herein, in view of the unique value to Motive of the services of Employee, and as a
material inducement for Motive to enter into this Agreement, Employee agrees as follows: 
 (a) Non-Competition.
Employee covenants and agrees that during the Restricted Period, with respect to any State of the United States of America or any other jurisdiction in the world in which Motive or any of its subsidiaries was engaged, or had committed plans to
engage, in business during the term of Employee’s employment, Employee shall not, directly or indirectly, individually or jointly, own any interest in, operate, join, control or participate as a partner, director, principal, officer, or agent
of, enter into the employment of, act as a consultant to, or perform any services for any individual or entity that engages in Competitive Activities; provided, however, that the provisions of this Section 12(a) shall not apply after
Employee’s termination of employment if payments are not due to Employee under Section 5(c) or 6(b). 

  

 PAGE 15 OF 23 

 
Notwithstanding anything herein to the contrary, this Section 12(a) shall not prevent Employee from acquiring as an investment securities representing
not more than three percent (3%) of the outstanding voting securities of any publicly-held corporation. For purposes of this Agreement, (i) “Restricted Period” shall mean the period commencing on the Effective Date
and extending to the first anniversary of Employee’s termination of employment for any reason and (ii) “Competitive Activities” shall mean any business activities in which Motive or any of its subsidiaries was
engaged or had committed plans to engage during the term of Employee’s employment; provided, that the activities of any entity that acquires all or substantially all of the business of Motive will not be considered Competitive Activities
if Motive was not engaged in such activities prior to such acquisition. 
 (b) Non-Solicitation; Non-Interference.
During the Restricted Period, Employee shall not, directly or indirectly, for his own account or for the account of any other individual or entity, encourage, solicit or induce, or in any manner attempt to solicit or induce, any individual or entity
employed by, as agent of, or a provider of products or services to, or any customer or vendor of Motive to terminate such person’s employment, agency or other relationship, as the case may be, with Motive. 
 13. ARBITRATION. Motive and Employee expressly agree that any dispute between them arising out of or relating to this Agreement or its
termination or any other aspect of Employee’s employment relationship with Motive or the termination of that relationship (including any contract or tort claims, or claimed violations of statute) shall be settled by binding arbitration in
Austin, Texas administered by the American Arbitration Association under its Employment Dispute Resolution Rules, and judgment upon the award rendered by the arbitrator(s) may be entered in any court with jurisdiction. In the event of any such
arbitration, the prevailing party shall be entitled to recover reasonable attorneys’ fees from the other party, if so directed by the arbitrator(s). The terms of this Section 13 survive the termination of this Agreement by either party for
any reason. 
 14. REGISTRATION OF EQUITY AWARDS. Motive and Employee acknowledge
and agree that the equity-based compensation awards that Motive is granting to Employee at the commencement of Employee’s employment hereunder are not being granted under any stockholder approved equity compensation plan of Motive. However,
Motive agrees to use reasonable commercial efforts to register the shares of its common stock that are subject to such awards on a Form S-8 or Form S-3 registration statement under the Securities Act of 1933, as amended, as promptly as practicable
after the execution and delivery of this Agreement. 
 15. MISCELLANEOUS. 
 (a) Entire Agreement. This Agreement embodies the entire agreement between the parties with respect to the subject matter hereof
and supersedes all prior agreements and understandings, if any, between the parties regarding the subject matter hereof. To the extent there is any conflict between the provisions of this Agreement and any of Motive’s personnel and/or payroll
policies, the terms of this Agreement shall control. 
  

 PAGE 16 OF 23 

 (b) Modification. Both parties agree that neither has the authority to modify or
amend this Agreement unless the modification or amendment is in writing and signed by both of them. 
 (c) Notice To
Employee. Notice to Employee shall have occurred and be effective when: (i) Employee receives actual notice, whether in writing or otherwise; and/or (ii) when a written notice is mailed via certified mail to Employee’s
then-current address as reflected in Motive’s records. 
 (d) Notice To Motive. Notice to Motive shall have
occurred and be effective when: (i) the Board receives written notice; and/or (ii) a written notice is delivered via certified mail to Motive’s then-current address to the attention of Motive’s Chief Financial Officer.

 (e) Severability. If any provision of this Agreement is declared or found to be illegal, unenforceable or void, the
remainder of this Agreement shall remain valid and enforceable to the fullest extent feasible. 
 (f) No Waiver. Any
waiver of any term of this Agreement by Motive shall not operate as a waiver of any other term of this Agreement, nor shall any failure to enforce any provision of this Agreement operate as a waiver of Motive’s right to enforce any other
provision of this Agreement. 
 (g) Successors. Employee’s obligations under this Agreement will be binding upon
Employee’s heirs, executors, assigns, and administrators and will inure to the benefit of Motive, its subsidiaries, successors, and assigns. 
 (h) Survival. The respective obligations of, and benefits offered to, Employee and Motive as provided under this Agreement shall survive the termination of this Agreement to carry out their intended effect.

 (i) Proper Construction. The language of all parts of this Agreement shall in all cases be construed as a whole
according to its fair meaning, and not strictly for or against either of the parties. The section headings used in this Agreement are intended solely for convenience of reference and shall not in any manner amplify, limit, modify or otherwise be
used in the interpretation of any of the provisions hereof. 
 16. CHOICE OF LAW
AND VENUE. This Agreement shall be governed by and construed in accordance with the substantive laws of the State of Texas. Both parties expressly consent to the jurisdiction of the state and federal courts located in
Texas. The parties further agree that, subject to the provisions of Section 13, the exclusive venue for the resolution of any dispute relating to the subject matter of this Agreement shall be in the state and federal courts located in Travis
County, Texas. 
  

 PAGE 17 OF 23 

 IN WITNESS WHEREOF, Employee and Motive have executed this
Agreement as of the Effective Date: 
  

									
	 MOTIVE:
	 		 	 EMPLOYEE:

				
	 By:
	 	 /s/ April Downing
	 		 	 /s/ Alfred Mockett

		 	 April Downing
	 		 	 Alfred Mockett

		 	 Vice President and
 Acting Chief Financial Officer
	 		 		 	

  

 PAGE 18 OF 23 

 EXHIBIT A 
 Form of Release 
 Release Agreement 
 1. This release (“Release”) is made effective as of
                    , by and between Motive, Inc. (“Motive”) and Alfred Mockett (“Employee”). 
 2. General Release by Employee. In exchange for Motive’s covenants, agreements, and payments as set forth in this Release and the
Employment Agreement executed on February 20, 2006 by and between Motive, Inc. and Employee (the “Employment Agreement”), Employee hereby irrevocably and unconditionally releases, relieves, acquits, waives, relinquishes and discharges
Motive and its parents, subsidiaries, affiliates and operating divisions, and its/their employees, members, officers, directors, shareholders, insurers, agents, representatives, heirs, executors, administrators, successors and assigns (collectively,
the “Released Parties”) of and from any and all claims, debts, obligations, promises, agreements, liabilities, damages, costs, attorneys’ fees, expenses, suits, appeals, actions and causes of action, of whatever kind or character
(including but not limited to, claims of misappropriation of trade secrets, inevitable disclosure, breach of fiduciary duty or the duty of loyalty, unfair competition, tortious interference with contract, tortious interference with business
relations, theft, or breach of contract), that Employee has or could have asserted against the Released Parties, and all other constitutional, federal, state and local law claims, whether statutory, regulatory, common law or otherwise, whether known
or unknown, whether foreseen or unforeseen, at law or in equity, for or because of any matter or thing done, omitted, or suffered to be done by the Released Parties at any time up through the date of the execution of this Release, or subsequent to
the execution of this Release if arising out of conduct occurring before the execution of this Release. Notwithstanding anything in this Release to the contrary, by executing this Release in compliance with Sections 5 and/or 6 of the Employment
Agreement, as applicable, the parties acknowledge that Employee’s rights: (A) to the payments, benefits and rights provided for in Sections 5, 6(b), 13 and 14 of the Employment Agreement, if any, are not waived and shall continue to be
governed by the terms of the Employment Agreement; (B) under the Indemnification Agreement, dated February 20, 2006, by and between Motive, Inc. and Employee and any other rights to indemnification and/or protection under any directors and
officers insurance policies, Motive’s by-laws and certificate of incorporation, agreements and insurance policies and applicable law, are not waived and shall continue to be governed by the terms thereof; (C) under the Restricted Stock
Agreement, dated February 20, 2006, by and between Motive, Inc. and Employee, if any, are not waived and shall continue to be governed by the terms of such agreement; (D) under the Non-Qualified Stock Option Agreement, dated
February 20, 2006, by and between Motive, Inc. and Employee, if any, are not waived and shall continue to be governed by the terms of such agreement; (E) under any employee benefit plans or policies maintained by Motive are not waived and
shall continue to be governed by the terms of such plans or policies; and (F) [Add other similar agreements entered into after the date of the Employment Agreement between Motive and Employee]. 
  

 PAGE 19 OF 23 

 3. Specific Release by Motive. In exchange for Employee’s covenants and agreements as
set forth in this Release and the Employment Agreement, Motive, on its own behalf and on behalf of its parents, subsidiaries, affiliates and operating divisions, and its/their employees, members, officers, directors, shareholders, successors and
assigns, hereby irrevocably and unconditionally releases, relieves, acquits, waives, relinquishes and discharges Employee and his representatives, heirs, executors, administrators, successors and assigns of and from only those claims,
including debts, obligations, promises, agreements, liabilities, damages, costs, attorneys’ fees, expenses, suits, appeals, actions and causes of action, of whatever kind or character, arising out of conduct relating to those matters set forth
on Exhibit A and occurring before the execution of this Release. 
 4. Motive and Employee expressly agree that Texas law applies to this
release in all regards. 
 SIGNED this              day of
                    , 200  . 
  

			
	 MOTIVE, INC.

		
	 By:
	 	  
	 Name:
	 	  
	 Title:
	 	  

  

	
	
	   
	 Alfred Mockett

  

 PAGE 20 OF 23 

 EXHIBIT A TO RELEASE AGREEMENT 
  

 PAGE 21 OF 23 

 ACKNOWLEDGMENT 
  

			
	 THE STATE OF TEXAS
	  	§
		  	§
	 COUNTY OF ________________
	  	§

 BEFORE ME, the undersigned Notary Public, personally appeared
                    , known to me to be the authorized agent of Motive, Inc. whose name is subscribed to the foregoing instrument, and
acknowledged to me that he/she executed this instrument for the purposes and consideration and in the capacity expressed therein. 
 GIVEN
UNDER MY HAND AND SEAL OF OFFICE ON this      day of                     , 200  . 
  

					
			
	 	 		 	   
	 My Commission Expires: ______________________________
	 		 	 Notary Public in and for
 The State of Texas

  

 PAGE 22 OF 23 

			
	 THE STATE OF TEXAS
	  	§
		  	§
	 COUNTY OF ________________
	  	§

 BEFORE ME, the undersigned Notary Public, personally appeared Alfred Mockett, known to me to be
the individual who executed the foregoing instrument, and acknowledged to me that he executed such instrument for the purposes and consideration expressed therein. 
 GIVEN UNDER MY HAND AND SEAL OF OFFICE ON this      day of                     ,
200  . 
  

					
			
	 	 		 	   
	 My Commission Expires: ______________________________
	 		 	 Notary Public in and for
 The State of Texas

  

 PAGE 23 OF 23

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