Document:

Amended and Restated 1993 Stock Option Plan

 Exhibit 10.12 
  
 WILLIAMS-SONOMA, INC. 
  
 Amended and Restated 1993 Stock Option Plan 
  

	 	1.	Purpose. 

  
 The purpose of this Amended and Restated 1993 Stock Option Plan (the “Plan”) of WILLIAMS-SONOMA, INC., a California corporation (the
“Company”), is to secure for the Company and its shareholders the benefits arising from stock ownership by selected key employees and directors of the Company or any of its Affiliates (as defined below). The Plan will provide a
means whereby such employees and directors may purchase shares of the common stock of the Company (or any class of stock into which such common stock is converted or reclassified as provided in Section 16) (the “Common Stock”)
pursuant to (i) options which will qualify as “incentive stock options” under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), and (ii) “non-incentive” or “nonqualified”
stock options (“nonqualified stock options”). 
  

	 	2.	Administration. 

  
 The Plan shall be administered by a committee (the “Committee”) appointed by the Board of Directors of the Company consisting of two or
more directors of the Company, all of whom shall be (i) “non-employee directors” within the meaning of Rule 16b-3 promulgated under the Securities Exchange Act of 1934, as amended, and (ii) “outside directors” within the meaning
of Section 162(m) of the Code. Any action of the Committee with respect to administration of the Plan shall be taken by a majority vote or unanimous written consent of its members. 
  
 Subject to the provisions of the Plan, the Committee shall have the authority (i) to construe and interpret the Plan, (ii)
to define the terms used herein, (iii) to prescribe, amend and rescind rules and regulations relating to the Plan, (iv) to determine the individuals to whom and the time or times at which options shall be granted, whether such options will be
incentive stock options or non-qualified stock options, the number of shares to be subject to each option, the option price, the number of installments, if any, in which each option may be exercised, and the duration of each option, (v) to approve
and determine the duration of leaves of absence which may be granted to participants without constituting a termination of their employment for the purposes of the Plan, (vi) to amend the terms of any outstanding option, with consent of the option
holder, and (vii) to make all other determinations necessary or advisable for the administration of the Plan. All determinations and interpretations made by the Committee shall be binding and conclusive on all participants in the Plan and their
legal representatives and beneficiaries. 
  

	 	3.	Shares Subject to the Plan. 

  
 Subject to adjustment as provided in Section 16, the shares to be offered under the Plan shall consist of the Company’s authorized but unissued
Common Stock, and the aggregate amount of such stock which may be issued upon exercise of all options under the Plan shall not exceed Seventeen 

  

 
Million (17,000,000) shares*; provided, however, that no officer (within the meaning of Rule 16a-1 promulgated under the Securities Exchange Act of 1934, as
amended) shall be granted in any fiscal year options to purchase more than 200,000 shares of Common Stock. If any option granted under the Plan shall expire or terminate for any reason without having been exercised in full, the unpurchased shares
subject thereto shall again be available for options to be granted under the Plan. 
  

	 	4.	Eligibility and Participation. 

  
 All key employees and directors of the Company or any Affiliate shall be eligible for selection to participate in the Plan. An
“Affiliate” shall mean any parent or subsidiary of the Company as defined in Section 424(e) and (f) of the Code. An individual who has been granted an option may, if such individual is otherwise eligible, be granted an additional
option or options if the Committee shall so determine, subject to the other provisions of the Plan. No incentive stock option may be granted to any person who, at the time the incentive stock option is granted, is not an employee of the Company.
Nonqualified stock options may be granted to persons who have agreed in writing to become officers or key employees of the Company or any Affiliate at the time of the grant and who become officers or key employees of the Company or any Affiliate
within 120 days thereafter. Spouses to whom a nonqualified stock option is transferred pursuant to a qualified domestic relations order pursuant to Section 10 shall also be eligible to participate in the Plan with regard to such option, but only to
the extent the original option holder would have been able to participate had such original option holder continued to hold the option, and to the extent permitted by the Committee or by the terms of the option agreement. 
  
 The aggregate fair market value (determined at the time the option is
granted) of the stock with respect to which incentive stock options (whenever granted) are exercisable for the first time by an option holder during any calendar year (under all incentive stock option plans of the Company and its Affiliates) shall
not exceed $100,000. 
  
 All incentive stock options granted under
the Plan shall be granted within ten years from the original date of adoption of this Plan. 
  

	 	5.	Duration of Options. 

  
 Subject to Section 15, each option and all rights associated therewith shall expire on such date as the Committee may determine, and shall be subject to
earlier termination as provided herein; provided, however, that all stock options shall expire within ten (10) years from the date on which such options are granted. 
  

	 	

  
 * This reflects an initial share reserve of 1,000,000 shares upon the adoption of the Plan, a 3-for-2 stock split in January 1994 (for a total of 1,500,000 shares), a 3-for-2 stock split in August 1994 (for a total of
2,250,000 shares), an increase of 500,000 shares (for a total of 2,750,000 shares) in 1997, an increase of 1,500,000 shares (for a total of 4,250,000 shares) in 1998, followed by a 2-for-1 stock split (for a total of 8,500,000 shares) later in 1998
and a subsequent 2-for-1 stock split in 2002 (for a total of 17,000,000 shares). 
  

 -2- 

	 	6.	Purchase Price. 

  
 Subject to Section 15, the purchase price of the stock covered by each option shall be determined by the Committee but shall not be less than one hundred
percent (100%) of the fair market value of such stock (as determined under Section 8) on the date of grant. The purchase price of the shares upon exercise of an option shall be paid in full at the time of exercise (i) in cash or by check payable to
the order of the Company, (ii) by delivery of shares of Common Stock of the Company already owned by, and in the possession of the option holder, or (iii) if authorized by the Committee or if specified in the option being exercised, (x) by a
promissory note made by option holder in favor of the Company, upon the terms and conditions determined by the Committee including, to the extent the Committee determines appropriate, a security interest in the shares issuable upon exercise or other
property, or (y) through a “cashless exercise,” in either case complying with applicable law (including, without limitation, state and federal margin requirements), or any combination thereof. Shares of Common Stock used to satisfy the
exercise price of an option shall be valued at their fair market value determined (in accordance with Section 8) on the date of exercise (or if such date is not a business day, as of the close of the business day immediately preceding such date).

  

	 	7.	Exercise of Options. 

  
 In no event shall any option be exercisable earlier than six months after the date of grant except in the case of the death or disability of the option
holder, in which case such option may be exercisable in accordance with Section 13. Each option granted under this Plan may be exercisable in full upon the expiration of such six month period or in such installments during the period prior to its
expiration date as the Committee shall determine. Furthermore, unless otherwise determined by the Committee, if the option holder shall not in any given installment period purchase all of the shares which the option holder is entitled to purchase in
such installment period, then the option holder’s right to purchase any shares not purchased in such installment period shall continue until the expiration date or sooner termination of the option holder’s option. No option may be
exercised for a fraction of a share and no partial exercise of any option may be for less than (i) one hundred (100) shares or (ii) the total number of shares then eligible for exercise, if less than one hundred (100) shares. 
  

	 	8.	Fair Market Value of Common Stock. 

  
 The fair market value of a share of Common Stock of the Company shall be determined for purposes of the Plan by reference to the closing price on the
principal stock exchange on which such shares are then listed or, if such shares are not then listed on a stock exchange, by reference to the closing price (if approved for quotation on the NASDAQ National Market System) or the mean between the bid
and asked price (if other over-the-counter issue) of a share as supplied by the National Association of Securities Dealers, Inc. through NASDAQ (or its successor in function), in each, case as reported by The Wall Street Journal, for the
business day immediately preceding the date on which the option is granted (which, for all purposes, shall be the date on which the Committee makes the determination granting the option) or exercised (or, if for any reason no such price is
available, in such other manner as the Committee may deem appropriate to reflect the then fair market value thereof). 
  

 -3- 

	 	9.	Withholding Tax. 

  
 Upon (i) the disposition by an employee or other person of shares of Common Stock acquired pursuant to the exercise of an incentive stock option granted
pursuant to the Plan within two years of the granting of the incentive stock option or within one year after exercise of the incentive stock option or (ii) the exercise of non qualified stock options, the Company shall have the right to require such
employee or such other person to pay the Company the amount of any taxes which the Company may be required to withhold with respect to such shares. 
  

	 	10.	Nontransferability. 

  
 An incentive stock option granted under the Plan shall, by its terms, be non-transferable by the option holder, either voluntarily or by operation of law,
otherwise than by will or the laws of descent and distribution, and shall be exercisable during the option holder’s lifetime only by the option holder, regardless of any community property interest therein of the spouse of the option holder, or
such spouse’s successors in interest. If the spouse of the option holder shall have acquired a community property interest in such option, the option holder, or the option holder’s permitted successors in interest, may exercise the option
on behalf of the spouse of the option holder or such spouse’s successors in interest. 
  
 A non-qualified stock option granted under the Plan shall, by its terms, be non-transferable by the option holder, either voluntarily or by operation of law, otherwise than by will or the laws of descent and
distribution or pursuant to a qualified domestic relations order as defined by the Code or Title I of ERISA, or the rules thereunder, and shall be exercisable during the option holder’s lifetime only by the option holder or, to the extent
permitted by the Committee or by the terms of the option agreement, the spouse of the option holder who obtained the option pursuant to such a qualified domestic relations order described herein or pursuant to Section 13. 
  

	 	11.	Shares to be Issued in Compliance with Federal Securities Laws and Exchange Rules. 

  
 At the discretion of the Committee, any option may provide that the option holder (and any transferee), by accepting such
option, represents and agrees that none of the shares purchased upon exercise of the option will be acquired with a view to any sale, transfer or distribution of said shares in violation of the Securities Act of 1933, as amended (the
“Securities Act”), and the rules and regulations promulgated thereunder, or any applicable state “blue sky” laws, and the person entitled to exercise the same shall furnish evidence satisfactory to the Company (including a
written and signed representation) to that effect in form and substance satisfactory to the Company, including an indemnification of the Company in the event of any violation of the Securities Act or state blue sky laws by such person. The Company
shall use its reasonable efforts to take all necessary and appropriate action to assure that the shares issuable upon the exercise of any option shall be issued in full compliance with the Securities Act, state blue sky laws and all applicable
licensing requirements of any principal securities exchange on which shares of the same class are listed. 
  

 -4- 

	 	12.	Termination of Employment. 

  
 If a holder of an incentive stock option ceases to be employed by the Company or any of its Affiliates for any reason other than the option holder’s
death or permanent disability (within the meaning of Section 22(e)(3) of the Code), the option holder’s incentive stock option shall be exercisable for a period of three (3) months after the date the option holder ceases to be an employee of
the Company or such Affiliate (unless by its terms it sooner expires) to the extent exercisable on the date of such cessation of employment and shall thereafter expire and be void and of no further force or effect. A leave of absence approved in
writing by the Committee shall not be deemed a termination of employment for the purposes of this Section 12, but no option may be exercised during any such leave of absence, except during the first three (3) months thereof. Termination of
employment or other relationship with the Company by the holder of a nonqualified stock option will have the effect specified in the individual option agreement, as determined by the Committee. Any option transferred pursuant to a qualified domestic
relations order pursuant to Section 10 shall continue to be subject to the provisions governing the grant to the original grantee, including without limitation, the provisions governing exercisability, vesting and termination (which shall be
determined by reference to the employment status of the original grantee), unless the option agreement or the Committee provides otherwise. 
  

	 	13.	Death or Permanent Disability of Option Holder. 

  
 If the holder of an incentive stock option dies or becomes permanently disabled (within the meaning of Section 22(e)(3) of the Code) while the option
holder is employed by the Company or any of its Affiliates, the option holder’s option shall be exercisable for a period of one (1) year after the date of such death or permanent disability (unless by its terms it sooner expires) to the extent
exercisable on the date of death or permanent disability and shall thereafter expire and be void and of no further force or effect. During such period after death, such incentive stock option may, to the extent that it remained unexercised (but
exercisable by the option holder according to such option’s terms) on the date of such death, be exercised by the person or persons to whom the option holder’s rights under the option shall pass by the option holder’s will or by the
laws of descent and distribution. The death or disability of a holder of a nonqualified stock option will have the effect specified in the individual option agreement, as determined by the Committee. 
  

	 	14.	Privileges of Stock Ownership. 

  
 No person entitled to exercise any option granted under the Plan shall have any of the rights or privileges of a shareholder of the Company in respect of
any shares of stock issuable upon exercise of such option until certificates representing such shares shall have been issued and delivered. No shares shall be issued and delivered upon the exercise of any option unless and until there shall have
been full compliance with all applicable requirements of the Securities Act (whether by registration or satisfaction of exemption conditions), all applicable listing requirements of any national securities exchange on which shares of the same class
are then listed and any other requirements of law or of any regulatory bodies having jurisdiction over such issuance and delivery. 
  

 -5- 

	 	15.	Special Terms Applicable to Significant Shareholders. 

  
 Notwithstanding any other provision of this Plan, each incentive stock option granted to a person possessing more than ten percent (10%) of the total
combined voting power of all classes of stock of the Company (or an Affiliate, as applicable) shall (i) have an exercise price of not less than one hundred and ten percent (110%) of the fair market value of the stock covered by the option (as
determined under Section 8) on the date of grant and (ii) expire not later than five (5) years from the date of grant. 
  

	 	16.	Adjustments. 

  
 If the outstanding shares of the Common Stock of the Company (or any other class of shares or securities which shall have become eligible for grant under
the Plan pursuant to this sentence) are increased or decreased or changed into or exchanged for a different number or kind of shares or securities of the Company through reorganization, recapitalization, reclassification, stock dividend, stock
split, reverse stock split or other similar transaction, an appropriate and proportionate adjustment shall be made in the maximum number and kind of shares as to which options may be granted under this Plan. A corresponding adjustment changing the
number or kind of shares allocated to unexercised options or portions thereof, which shall have been granted prior to any such change, shall likewise be made. Any such adjustment in the outstanding options shall be made without change in the
aggregate purchase price applicable to the unexercised portion of the option but with a corresponding adjustment in the price for each share or other unit of any security covered by the option. 
  
 Upon the dissolution or liquidation of the Company, or upon a reorganization,
merger or consolidation of the Company with one or more corporations as a result of which the Company is not the surviving corporation, or upon a sale of substantially all the property or more than eighty percent (80%) of the then outstanding stock
of the Company to another corporation, the Plan shall terminate, and all options theretofore granted hereunder shall terminate; provided, however, that notwithstanding the foregoing, the Committee shall provide in writing in connection with such
transaction for any or all of the following alternatives (separately or in combinations): (i) for the options theretofore granted to become immediately exercisable notwithstanding the provisions of Section 7; (ii) for the assumption by the successor
corporation of the options theretofore granted or the substitution by such corporation for such options and rights of new options and rights covering the stock of the successor corporation, or a parent or subsidiary thereof, with appropriate
adjustments as to the number and kind of shares and prices; (iii) for the continuance of the Plan by such successor corporation in which event the Plan and the options theretofore granted shall continue in the manner and under the terms so provided;
or (iv) for the payment in cash or stock in lieu of and in complete satisfaction of such options. 
  
 Adjustments under this Section 16 shall be made by the Committee, whose determination as to what adjustments shall be made, and the extent thereof, shall
be final, binding and conclusive. No fractional shares of stock shall be issued under the Plan on any such adjustment. 
  

 -6- 

	 	17.	Amendment and Termination of Plan. 

  
 The Committee may at any time suspend or terminate the Plan. The Committee may also at any time amend or revise the terms of the Plan, provided that no
such amendment or revision shall, unless appropriate shareholder approval of such amendment or revision is obtained, increase the maximum number of shares in the aggregate which may be sold pursuant to options granted under the Plan, except as
permitted under the provisions of Section 16, or change the minimum purchase price of incentive stock options set forth in Sections 6 and 15, or increase the maximum term of incentive stock options provided for in Sections 5 and 15, or permit the
granting of options to anyone other than as provided in Section 4, or otherwise materially increase the benefits accruing to employees under the plan. 
  
 Notwithstanding the foregoing, no amendment, suspension or termination of the Plan shall, without specific action of the Committee and the consent of the
option holder, in any way modify, amend, alter or impair any rights or obligations under any option theretofore granted under the Plan. 
  

	 	18.	Effective Date of Plan. 

  
 The Plan, as hereby amended, shall be submitted for approval by the holders of the outstanding voting stock of the Company within twelve (12) months from
the date the amendments are adopted by the Board of Directors. 
  

 -7- 

 CERTIFICATION BY SECRETARY 
  
 The undersigned certifies that (i) he is the duly elected, qualified and acting Secretary of Williams-Sonoma, Inc., a
California corporation, (ii) the foregoing is a true and correct copy of the Amended and Restated 1993 Stock Option Plan as adopted by the Board of Directors on March 30, 2004 and (iii) the Board of Directors has not amended or rescinded the plan
since that date. 
  
 /s/ Seth R.
Jaffe                                       
                      
 Seth R. Jaffe, Secretary 
  
 Approved
and adopted 
 by the Board of Directors 
 on March 17, 1993 
  
 Shareholder approval 
 received on May 26, 1993 
  
 Amended and restated 
 by the Board of Directors on 
 March 11, 1998 
  
 Shareholder approval of 
 amendment and restatement 
 received on May 27, 1998 
  
 Amended and restated by 
 the Board of Directors on 
 March 30, 2004Amended and Restated 2001 Incentive Bonus Plan

 Exhibit 10.16 
  
 WILLIAMS-SONOMA, INC. 
  
 2001 INCENTIVE BONUS PLAN 
  
 1. Adoption, Name and Effective Date. Williams-Sonoma, Inc., a California corporation (the “Company”), hereby adopts the Williams-Sonoma,
Inc. 2001 Incentive Bonus Plan (this “Plan”) effective as of January 24, 2001, and first applying with respect to the fiscal year ending February 3, 2002, subject to stockholder approval at the 2001 Annual Meeting of Stockholders as
described below. 
  
 2. Purpose. The purpose of this Plan
is to provide additional compensation as an incentive to executive officers to attain certain specified performance objectives of the Company and to ensure the continued availability of their full-time or part-time services to the Company and its
subsidiary and affiliated corporations. This Plan is also intended to qualify as a “performance-based” plan as described in Section 162(m)(4)(C) of the Internal Revenue Code of 1986, as amended (including proposed, temporary and final
regulations promulgated thereunder from time to time, the “Code”), and thereby secure the full deductibility for federal income tax purposes of bonus compensation paid to persons who are “executive officers” of the Company, as
such term is defined in Rule 3b-7 under the Securities Exchange Act of 1934, as amended (or any successor rule or regulation), or who are “covered employees” of the Company or its subsidiary or affiliated corporations under Section
162(m)(3) of the Code. 
  
 3. Administrative Committee.
This Plan will be administered by a committee (the “Committee”) of the Company’s Board of Directors (the “Board”), consisting entirely of two or more persons who are “outside directors” within the meaning of
Section 162(m) of the Code. The Committee is hereby vested with full powers of administration, subject only to the provisions set forth herein. 
  
 The Committee shall hold its meetings at such times and places as it may determine, shall keep minutes of its meetings and shall adopt, amend or revoke
such rules and procedures as it deems proper for the administration of this Plan; provided, however, that it shall take action only upon the agreement of a majority of the whole Committee. Any action that the Committee takes through a written
instrument signed by a majority of its members shall be effective as though it had been taken at a meeting duly called and held. The Committee shall report all actions taken by it to the Board. 
  
 The Committee shall have the full and final discretion and authority, subject
to the provisions of this Plan, to grant awards pursuant to this Plan, to construe and interpret this Plan and to make all other determinations and take all other actions, which it deems necessary or appropriate for the proper administration of this
Plan. All such interpretations, actions and determinations shall be conclusively binding for all purposes and upon all persons. 
  
 4. Eligibility. For each fiscal year of the Company, the participants entitled to share in the benefits of this Plan are persons (collectively,
“executives” or “participants”) who are “executive officers” of the Company, as such term is defined in Rule 3b-7 under the Securities Exchange Act of 1934, as amended (or any successor rule or regulation), or who are
“covered employees” of 
 the Company or its subsidiary or affiliated corporations under Section 162(m)(3) of the Code (collectively, the
“Covered Employees”). Except as provided in Section 6.4, an executive whose employment or service relationship with the Company is terminated for any reason prior to the end of any award period will not be entitled to participate in this
Plan or receive any benefits with respect to any later fiscal year, unless he or she again becomes eligible to participate 
 in this Plan under the first
sentence of this Section 4. 
  
 5. Determination of Awards;
Limitations on Amounts of Awards. 
  
 5.1  Performance Measures for Determination of Awards. The Committee in its discretion shall establish, for each participant in this Plan and for each performance award period, a performance award opportunity based upon the
achievement of a specified goal relating to the following measures (singly or in combination): revenues (in the aggregate or for particular product lines or markets); earnings per share; earnings before interest, taxes, depreciation and
amortization; or before-tax or after-tax net profits. The maximum award under this Plan for each 

  

 1 

 
award period to any participant shall not exceed the lesser of (i) $2,000,000 or (ii) 200% of such participant’s annual base salary in effect on the
first day of the first fiscal year of such award period, multiplied by the number of complete or partial fiscal years in such award period; provided, however, in the case of a restricted stock award to Dale Hilpert (“Mr. Hilpert”), the
maximum number of shares that may be awarded shall be 250,000 shares, with such number to be adjusted in the manner determined by the Committee to reflect any recapitalization, stock split, stock dividend, reorganization, reclassification, reverse
stock split, or similar transaction affecting the capital stock of the Company. Each performance goal established under this Plan shall be established by the Committee not later than the earlier of the date which is 90 days after the first day of
the performance award period, or the date on which 25% of the award period has elapsed. 
  
 5.2  Determination of Amount of Individual Awards. For each award period, each participant who is or may be a Covered Employee for such award period shall receive an award equal to the specific amount
(subject to decrease as provided in this Section 5.2) determined strictly under the performance goals established pursuant to Section 5.1. For each award period, each participant who is not a Covered Employee for such award period shall receive an
award which may be either (a) equal to the specific amount (subject to decrease as provided in this Section 5.2) determined strictly under the performance goals established pursuant to Section 5.1, or (b) an amount determined in the discretion of
the Committee within a range determined under the performance goals established pursuant to Section 5.1. Solely in the case of Mr. Hilpert, an award may consist of the grant of restricted stock of the Company, as determined under the performance
goals established pursuant to Section 5.1. In the case of an award of restricted stock to Mr. Hilpert, the Committee will condition the grant of the award on the agreement of Mr. Hilpert not to make the election described in Section 83(b) of the
Code, and will determine and establish the restrictions on such restricted stock. The Committee shall not have the discretion to increase, but shall have the discretion to decrease, any award determined in accordance with this Plan. The reduction in
any participant’s award for any award period as a result of the Committee’s exercise of such discretion shall not increase the amount of an award to any other participant (through reallocation of unutilized awards or otherwise) with
respect to such award period. 
  
 6. Award Periods; Payment of
Awards. 
  
 6.1  Award Periods. All awards
shall be made on the basis of an award period, which shall consist of one or more fiscal years of the Company, or one or more quarters thereof. The award period may be different for different awards. 
  
 6.2  Committee Certifications. As a condition precedent to
the payment of any award (or, in the case of the granting of Mr. Hilpert’s award of restricted stock), the Committee shall certify, as soon as practicable following the end of the award period, that the objective performance goal for the award
has been satisfied and that the amount of the award is no greater than the limitations set forth in Section 5.1. The Committee shall make such determination by means of a written resolution of the Committee that is maintained in the minute book of
the Company. 
  
 6.3  Payment of Awards. Except
for the award of restricted stock to Mr. Hilpert, awards under this Plan will be paid in cash (or, if the participant is indebted to the Company, by cancellation of such indebtedness), reasonably promptly following the conclusion of the award period
and the certification of the Committee as set forth in Section 6.2, but in no event later than two and one-half months after the conclusion of the fiscal year of the Company in which or with which the award period ends. In the case of the award of
restricted stock to Mr. Hilpert, Mr. Hilpert will be granted the restricted stock, reasonably promptly following the conclusion of the award period and the certification of the Committee as set forth in Section 6.2, but in no event later than two
and one-half months after the conclusion of the fiscal year of the Company in which or with which the award period ends. All awards under this Plan will be subject to withholding for applicable employment and income taxes. 
  
 6.4  Termination of Employment. An award that would
otherwise be payable to a participant (including, without limitation, an award of restricted stock to Mr. Hilpert) who is not employed by the Company on the last day of an award period will not be paid (or will not be granted, as the case may be),
except that, on the grant of an award, the Committee may specify that the award will be paid (or will be granted, as the case may be) in full or on a prorated basis in the event that, before the end of such award period, the participant dies,
becomes “disabled,” retires in accordance with the Company’s policies, is involuntarily terminated by the Company without “cause,” or voluntarily terminates his or her employment with the Company for “good reason,”
or if a “change in control” of the Company occurs. For purposes of this Section 6.4, terms “cause,” “good reason,” and “change in control” shall be as 

  

 2 

 
defined in the participant’s employment agreement with the Company, or, if not so defined, shall be defined in writing by the Committee at the time of
the grant of the award. 
  
 7. Nonassignment. The interest
of any participant in this Plan is not assignable either by voluntary or involuntary assignment or operation of law (except that, in the event of death, earned and unpaid amounts shall be payable to the legal successor of a participant). 

 
 8. Indemnification. No employee, member of the Committee or
director of the Company will have any liability for any decision or action if made or done in good faith, nor for any error or miscalculation unless such error or miscalculation is the result of his or her fraud or deliberate disregard of any
provisions of this Plan. The Company will indemnify each director, member of the Committee and any employee acting in good faith pursuant to the Plan against any loss or expense arising therefrom. 
  
 9. Amendment, Suspension or Termination. The Board may from time to
time amend, suspend or terminate, in whole or in part, any or all the provisions of this Plan; provided, however, that no such action shall adversely affect the right of any participant with respect to any award of which he or she may have become
entitled to payment hereunder prior to the effective date of such amendment, suspension or termination. In particular, but without limitation, the Board shall have the authority to amend or modify this Plan from time to time in order to reflect
amendments to or regulations promulgated under Section 162(m) of the Code. Notwithstanding the foregoing, in the event that any amendment or other modification of or to this Plan expands the class of persons eligible to participate as set forth in
Section 4, raises the limits set forth in the last sentence of Section 5.1 or requires stockholder approval in order to continue the compliance of this Plan as a “performance-based” plan under Section 162(m) of the Code, such amendment or
modification shall be contingent on the receipt of stockholder approval. 
  
 10. Limitations; Participation in Other Plans. This Plan is not to be construed as constituting a contract of employment or for services. Nothing contained herein will affect or impair the Company’s right
to terminate the employment or other contract for services of a participant hereunder, or entitle a participant to receive any particular level of compensation. The Company’s obligation hereunder to make awards merely constitutes the unsecured
promise of the Company to make such awards from its general assets, and no participant hereunder will have any interest in, or a lien or prior claim upon, any property of the Company. Nothing herein nor the participation by any participant shall
limit the ability of such participant to participate in any other compensatory plan or arrangement of the Company, or to receive a bonus from the Company other than under this Plan. 
  
 11. Governing Law. The terms of this Plan will be governed by and construed in accordance with the laws of the State
of California, without regard to principles of conflict of laws. 
  
 12. Term. This Plan shall continue in place until the fifth anniversary of the effective date, unless earlier terminated by the Board as provided in Section 9. No awards shall be paid under this Plan unless and until the material
terms (within the meaning of Section 162(m)(4)(C) of the Code) of this Plan are disclosed to the Company’s stockholders and are approved by the stockholders by a majority of votes cast in person or by proxy. 
  

 3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]