Document:

1998 EQUITY PLAN AMENDMENT

EXHIBIT
10.2

 

NVIDIA
Corporation

1998
EQUITY INCENTIVE PLAN

 

Adopted
February 17, 1998

Amended
March 17, 1998

Approved
by Shareholders April 6, 1998

Amended
December 7, 1998

Adjusted
for 2-for-1 Stock Split on June 26, 2000

Amended
July 1, 2000

Adjusted
for 2-for-1 Stock Split on September 17, 2001

Amended
November 7, 2002

Amended
June 30, 2004

Termination
Date: February 16, 2008

 

1.  Purposes.

 

(a)  The Plan
is an amendment and restatement of the Company's existing Equity Incentive Plan
adopted May 21, 1993 (the "Prior Plan"). The Prior Plan hereby is amended and
restated in its entirety as the 1998 Equity Incentive Plan and shall become
effective on the date of approval of the Plan by the Board (the "Effective
Date"). No options shall be granted under the Prior Plan from and after the
Effective Date. The terms of the Prior Plan (other than the aggregate number of
shares issuable thereunder) shall remain in effect and apply to all options
granted pursuant to the Prior Plan.

 

(b)  The
purpose of the Plan is to provide a means by which selected Employees and
Directors of and Consultants to the Company, and its Affiliates, may be given an
opportunity to benefit from increases in value of the stock of the Company
through the granting of (i) Incentive Stock Options, (ii) Nonstatutory Stock
Options, (iii) stock bonuses, and (iv) rights to purchase restricted
stock.

 

(c)  The
Company, by means of the Plan, seeks to retain the services of persons who are
now Employees or Directors of or Consultants to the Company or its Affiliates,
to secure and retain the services of new Employees, Directors and Consultants,
and to provide incentives for such persons to exert maximum efforts for the
success of the Company and its Affiliates.

 

(d)  The
Company intends that the Stock Awards issued under the Plan shall, in the
discretion of the Board or any Committee to which responsibility for
administration of the Plan has been delegated pursuant to subsection 3(c), be
either (i) Options granted pursuant to Section 6 hereof, including Incentive
Stock Options and Nonstatutory Stock Options, or (ii) stock bonuses or rights to
purchase restricted stock granted pursuant to Section 7 hereof. All Options
shall be separately designated Incentive Stock Options or Nonstatutory Stock
Options at the time of grant, and in such form as issued pursuant to Section 6,
and a separate certificate or certificates will be issued for shares purchased
on exercise of each type of Option.

 

2.  Definitions.

 

(a)  Affiliate means
any parent corporation or subsidiary corporation, whether now or hereafter
existing, as those terms are defined in Sections 424(e) and (f) respectively, of
the Code.

 

(b)  Board means
the Board of Directors of the Company.

 

(c)  Code means
the Internal Revenue Code of 1986, as amended.

 

(d)  Common
Stock means
the common stock of the Company.

 

(e)  Committee means a
Committee appointed by the Board in accordance with subsection 3(c) of the
Plan.

 

(f)  Company means
NVIDIA Corporation.

 

(g)  Consultant means
any person, including an advisor, engaged by the Company or an Affiliate to
render consulting services and who is compensated for such services, provided
that the term "Consultant" shall not include Directors who are paid only a
director's fee by the Company or who are not compensated by the Company for
their services as Directors. The term "Consultant" shall include members of the
Board of Directors of an Affiliate.

 

(h)  Continuous
Service means
that the Participant's service with the Company or an Affiliate, whether as an
Employee, Director or Consultant, is not interrupted or terminated. The
Participant's Continuous Service shall not be deemed to have terminated merely
because of a change in the capacity in which the Participant renders service to
the Company or an Affiliate as an Employee, Consultant or Director or a change
in the entity for which the Participant renders such service, provided that
there is no interruption or termination of the Participant's Continuous Service.
For example, a change in status from an Employee of the Company to a Consultant
or a Director of an Affiliate will not constitute an interruption of Continuous
Service as an Employee. The Board or the chief executive officer of the Company,
in that party's sole discretion, may determine whether Continuous Service shall
be considered interrupted in the case of: (i) any leave of absence approved by
the Board or the chief executive officer of the Company, including sick leave,
military leave, or any other personal leave; or (ii) transfers between the
Company, its Affiliates or their successors.

 

(i)  Covered
Employee means
the Chief Executive Officer and the four (4) other highest compensated officers
of the Company for whom total compensation is required to be reported to
shareholders under the Exchange Act, as determined for purposes of Section
162(m) of the Code.

 

(j)  Director means a
member of the Board.

 

(k)  Directors’
Plan means
the 1998 Non-Employee Directors' Stock Option Plan of the Company.

 

(l)  Diluted
Shares Outstanding means, as
of any date, (i) the number of outstanding shares of Common Stock of the Company
on such Calculation Date (as defined in Section 4(a) herein), plus (ii) the
number of shares of Common Stock issuable upon such Calculation Date assuming
the conversion of all outstanding Preferred Stock and convertible notes, plus
(iii) the additional number of dilutive Common Stock equivalent shares
outstanding as the result of any options or warrants outstanding during the
fiscal year, calculated using the treasury stock method.

 

(m)  Employee means
any person, including an Officer or Director, employed by the Company or any
Affiliate. Neither service as a Director nor payment of a director's fee by the
Company shall be sufficient to constitute "employment" by the
Company.

 

(n)  Exchange
Act means
the Securities Exchange Act of 1934, as amended.

 

(o)  Fair
Market Value means,
as of any date, the value of the Common Stock determined as
follows:

 

(i)  If the
Common Stock is listed on any established stock exchange or a national market
system, including without limitation the Nasdaq National Market, the Fair Market
Value of a share of Common Stock shall be the closing sales price for such stock
(or the closing bid, if no sales were reported) as quoted on such system or
exchange (or the exchange with the greatest volume of trading in Common Stock)
on the last market trading day prior to the day of determination, as reported in
the Wall Street Journal or such other source as the Board deems
reliable;

 

(ii)  If the
Common Stock is quoted on the Nasdaq Small-Cap Market or is regularly quoted by
a recognized securities dealer but selling prices are not reported, the Fair
Market Value of a share of Common Stock shall be the mean between the bid and
asked prices for the Common Stock on the last market trading day prior to the
day of determination, as reported in the Wall Street Journal or such other
source as the Board deems reliable;

 

(iii)  In the
absence of an established market for the Common Stock, the Fair Market Value
shall be determined in good faith by the Board.

 

(iv)  Prior to
the Listing Date, the value of the Common Stock shall be determined in a manner
consistent with Section 260.140.50 of Title 10 of the California Code of
Regulations.

 

(p)  Listing
Date means
the first date upon which any security of the Company is listed (or approved for
listing) upon notice of issuance on any securities exchange, or designated (or
approved for designation) upon notice of issuance as a national market security
on an interdealer quotation system if such securities exchange or interdealer
quotation system has been certified in accordance with the provisions of Section
25100(o) of the California Corporate Securities Law of 1968.

 

(q)  Incentive
Stock Option means an
Option intended to qualify as an incentive stock option within the meaning of
Section 422 of the Code and the regulations promulgated thereunder.

 

(r)  Non-Employee
Director means a
Director of the Company who either (i) is not a current Employee or Officer of
the Company or its parent or a subsidiary, does not receive compensation
(directly or indirectly) from the Company or its parent or subsidiary for
services rendered as a consultant or in any capacity other than as a Director
(except for an amount as to which disclosure would not be required under Item
404(a) of Regulation S-K promulgated pursuant to the Securities Act Regulation
S-K)), does not possess an interest in any other transaction as to which
disclosure would be required under Item 404(a) of Regulation S-K, and is not
engaged in a business relationship as to which disclosure would be required
under Item 404(b) of Regulation S-K; or (ii) is otherwise considered a
"non-employee director" for purposes of Rule 16b-3.

 

(s)  Nonstatutory
Stock Option means an
Option not intended to qualify as an Incentive Stock Option.

 

(t)  Officer means
(i) before the Listing Date, any person designated by the Company as an officer
and (ii) on and after the Listing Date, a person who is an officer of the
Company within the meaning of Section 16 of the Exchange Act and the rules and
regulations promulgated thereunder.

 

(u)  Option means a
stock option granted pursuant to the Plan.

 

(v)  Option
Agreement means a
written agreement between the Company and an Optionee evidencing the terms and
conditions of an individual Option grant. Each Option Agreement shall be subject
to the terms and conditions of the Plan.

 

(w)  Optionee means an
Employee, Director or Consultant who holds an outstanding Option.

 

(x)  Outside
Director means a
Director of the Company who either (i) is not a current employee of the Company
or an "affiliated corporation" (within the meaning of Treasury regulations
promulgated under Section 162(m) of the Code), is not a former employee of the
Company or an "affiliated corporation" receiving compensation for prior services
(other than benefits under a tax qualified pension plan), was not an officer of
the Company or an "affiliated corporation" at any time, and is not currently
receiving direct or indirect remuneration from the Company or an "affiliated
corporation" for services in any capacity other than as a Director, or (ii) is
otherwise considered an "outside director" for purposes of Section 162(m) of the
Code.

 

(y)  Plan means
this NVIDIA Corporation 1998 Equity Incentive Plan.

 

(z)  Rule
16b-3 means
Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3, as in effect when
discretion is being exercised with respect to the Plan.

 

(aa)  Stock
Award means
any right granted under the Plan, including any Option, any stock bonus, and any
right to purchase restricted stock.

 

(bb)  Stock
Award Agreement means a
written agreement between the Company and a holder of a Stock Award evidencing
the terms and conditions of an individual Stock Award grant. Each Stock Award
Agreement shall be subject to the terms and conditions of the Plan.

 

(cc)  Ten
Percent Shareholder means a
person who owns (or is deemed to own pursuant to Section 424(d) of the Code)
stock possessing more than ten percent (10%) of the total combined voting power
of all classes of stock of the Company or of any of its Affiliates.

 

3.  Administration.

 

(a)  The Plan
shall be administered by the Board unless and until the Board delegates
administration to a Committee, as provided in subsection 3(c).

 

(b)  The Board
shall have the power, subject to, and within the limitations of, the express
provisions of the Plan:

 

(i)  To
determine from time to time which of the persons eligible under the Plan shall
be granted Stock Awards; when and how each Stock Award shall be granted; whether
a Stock Award will be an Incentive Stock Option, a Nonstatutory Stock Option, a
stock bonus, a right to purchase restricted stock, or a combination of the
foregoing; the provisions of each Stock Award granted (which need not be
identical), including the time or times when a person shall be permitted to
receive stock pursuant to a Stock Award; and the number of shares with respect
to which a Stock Award shall be granted to each such person.

 

(ii)  To
construe and interpret the Plan and Stock Awards granted under it, and to
establish, amend and revoke rules and regulations for its administration. The
Board, in the exercise of this power, may correct any defect, omission or
inconsistency in the Plan or in any Stock Award Agreement, in a manner and to
the extent it shall deem necessary or expedient to make the Plan fully
effective.

 

(iii)  To amend
the Plan or a Stock Award as provided in Section 13.

 

(iv)  Generally,
to exercise such powers and to perform such acts as the Board deems necessary or
expedient to promote the best interests of the Company which are not in conflict
with the provisions of the Plan.

 

(c)  The Board
may delegate administration of the Plan to a Committee or Committees of one or
more members of the Board, and the term "Committee" shall apply to any person or
persons to whom such authority has been delegated. If administration is
delegated to a Committee, the Committee shall have, in connection with the
administration of the Plan, the powers theretofore possessed by the Board,
including the power to delegate to a subcommittee any of the administrative
powers the Committee is authorized to exercise (and references in this Plan to
the Board shall thereafter be to the Committee or subcommittee), subject,
however, to such resolutions, not inconsistent with the provisions of the Plan,
as may be adopted from time to time by the Board. The Board may abolish the
Committee at any time and revest in the Board the administration of the Plan. In
the discretion of the Board, a Committee may consist solely of two or more
Outside Directors, in accordance with Code Section 162(m), or solely of two or
more Non-Employee Directors, in accordance with Rule 16b-3. Within the scope of
such authority, the Board or the Committee may (1) delegate to a committee of
one or more members of the Board who are not Outside Directors the authority to
grant Stock Awards to eligible persons who are either (a) not then Covered
Employees and are not expected to be Covered Employees at the time of
recognition of income resulting from such Stock Award, or (b) not persons with
respect to whom the Company wishes to comply with Section 162(m) of the Code,
and/or (2) delegate to a committee of one or more members of the Board who are
not Non-Employee Directors the authority to grant Stock Awards to eligible
persons who are not then subject to Section 16 of the Exchange Act.

 

4.  Shares
Subject To The Plan.

 

(a)  Subject
to the provisions of Section 12 relating to adjustments upon changes in stock,
the stock that may be issued pursuant to Stock Awards shall not exceed in the
aggregate Sixty Million (60,000,000) shares of the Company's Common Stock. If
any Stock Award shall for any reason expire or otherwise terminate, in whole or
in part, without having been exercised in full, the stock not acquired under
such Stock Award shall revert to and again become available for issuance under
the Plan.

 

(b)  Except as
adjusted pursuant to Section 12 of the Plan, however, no more than Sixty Million
(60,000,000) shares of Common Stock of the shares eligible for issuance under
the Plan shall be issued upon the exercise of Incentive Stock Options under the
Plan.

 

(c)  The stock
subject to the Plan may be unissued shares or reacquired shares, bought on the
market or otherwise.

 

(d)  Prior to
the Listing Date, at no time shall the total number of shares issuable upon
exercise of all outstanding Options and the total number of shares provided for
under any stock bonus or similar plan of the Company exceed the applicable
percentage as calculated in accordance with the conditions and exclusions of
Section 260.140.45 of Title 10 of the California Code of Regulations, based on
the shares of the Company which are outstanding at the time the calculation is
made.

 

5.  Eligibility.

 

(a)  Incentive
Stock Options may be granted only to Employees. Stock
Awards other than Incentive Stock Options may be granted only to Employees,
Directors or Consultants.

 

(b)  No person
shall be eligible for the grant of an Option or an award of purchase of
restricted stock if, at the time of grant, such person owns (or is deemed to own
pursuant to Section 424(d) of the Code) stock possessing more than ten percent
(10%) of the total combined voting power of all classes of stock of the Company
or of any of its Affiliates unless the exercise price of such Option is at least
one hundred ten percent (110%) of the Fair Market Value of such stock at the
date of grant, the exercise price of such restricted stock award is at least one
hundred percent (100%) of the Fair Market Value of such stock at the date of
grant and an Incentive Stock Option is not exercisable after the expiration of
five years from the date of grant. After the Listing Date, this provision shall
apply only to Incentive Stock Options.

 

(c)  Subject
to the provisions of Section 12 relating to adjustments upon changes in stock,
no employee shall be eligible to be granted Options covering more than Four
Million (4,000,000) shares of the Common Stock during any calendar year. This
subsection shall not apply prior to the Listing Date and, following the Listing
Date, this subsection shall not apply until (i) the earliest of: (A) the first
material modification of the Plan (including any increase to the number of
shares reserved for issuance under the Plan in accordance with Section 4); (B)
the issuance of all of the shares of Common Stock reserved for issuance under
the Plan; (C) the expiration of the Plan; or (D) the first meeting of
shareholders at which Directors of the Company are to be elected that occurs
after the close of the third calendar year following the calendar year in which
occurred the first registration of an equity security under Section 12 of the
Exchange Act; or (ii) such other date required by Section 162(m) of the Code and
the rules and regulations promulgated thereunder.

 

(d)  At any
such time or times that the number of shares of Common Stock reserved for
issuance under the Directors’ Plan are insufficient for the purpose of making
one or more of the non-discretionary grants of options specified in Section 5 of
the Directors’ Plan, then, without any further action of the Board, the number
of shares of Common Stock remaining in the share reserve of the Directors’ Plan
shall be applied to such non-discretionary grants on a pro rated basis, and any
additional number of shares of Common Stock required for such non-discretionary
grants of options shall be deemed to have been made under this Plan but on the
terms and conditions specified in the Directors’ Plan. In the event of any
conflict between the terms and conditions of the Directors’ Plan and this Plan,
the terms and conditions of the Directors’ Plan shall control. Notwithstanding
anything in the Directors’ Plan or this Plan to the contrary, the terms and
conditions of the Directors’ Plan shall survive the termination of the
Directors’ Plan as to any non-discretionary grants of options made pursuant to
this subsection 5(d).

 

6.  Option
Provisions.

 

Each
Option shall be in such form and shall contain such terms and conditions as the
Board shall deem appropriate. The provisions of separate Options need not be
identical, but each Option shall include (through incorporation of provisions
hereof by reference in the Option or otherwise) the substance of each of the
following provisions:

 

(a)  Term. No
Option shall be exercisable after the expiration of ten years from the date it
was granted.

 

(b)  Price. The
exercise price of each Incentive Stock Option shall be not less than one hundred
percent (100%) of the fair market value of the stock subject to the Option on
the date the Option is granted. The exercise price of each Nonstatutory Stock
Option shall be not less than eighty five percent (85%) of the Fair Market Value
of the stock subject to the Option on the date the Option is
granted.

 

(c)  Consideration. The
purchase price of stock acquired pursuant to an Option shall be paid, to the
extent permitted by applicable statutes and regulations, either (i) in cash at
the time the Option is exercised, or (ii) at the discretion of the Board or the
Committee, at the time of the grant of the Option, (a) by delivery to the
Company of other Common Stock, (b) according to a deferred payment or other
arrangement (which may include, without limiting the generality of the
foregoing, the use of other Common Stock) with the person to whom the Option is
granted or to whom the Option is transferred pursuant to subsection 6(d), or (C)
in any other form of legal consideration that may be acceptable to the Board;
provided,
however, that at
any time that the Company is incorporated in Delaware, then payment of the
Common Stock's "par value," as defined in the Delaware General Corporation Law,
shall not be made by deferred payment. In the case of any deferred payment
arrangement, interest shall be compounded at least annually and shall be charged
at the minimum rate of interest necessary to avoid the treatment as interest,
under any applicable provisions of the Code, of any amounts other than amounts
stated to be interest under the deferred payment arrangement.

 

(d)  Transferability. An
Incentive Stock Option and, prior to the Listing Date, a Nonstatutory Stock
Option shall not be transferable except by will or by the laws of descent and
distribution, and shall be exercisable during the lifetime of the person to whom
the Incentive Stock Option is granted only by such person. After the Listing
Date, a Nonstatutory Stock Option shall be transferable to the extent provided
in the Option Agreement. If the Nonstatutory Stock Option does not provide for
transferability, then the Nonstatutory Stock Option shall not be transferable
except by will or by the laws of descent and distribution, and shall be
exercisable during the lifetime of the person to whom the Option is granted only
by such person. Notwithstanding the foregoing provisions of subsection 6(f), the
person to whom the Option is granted may, by delivering written notice to the
Company, in a form satisfactory to the Company, designate a third party who, in
the event of the death of the Optionee, shall thereafter be entitled to exercise
the Option.

 

(e)  Vesting. The
total number of shares of stock subject to an Option may, but need not, be
allotted in periodic installments (which may, but need not, be equal). The
Option Agreement may provide that from time to time during each of such
installment periods, the Option may become exercisable ("vest") with respect to
some or all of the shares allotted to that period, and may be exercised with
respect to some or all of the shares allotted to such period and/or any prior
period as to which the Option became vested but was not fully exercised. The
Option may be subject to such other terms and conditions on the time or times
when it may be exercised which may be based upon performance or other criteria
as the Board may deem appropriate. The provisions of this subsection 6(e) are
subject to any Option provisions governing the minimum number of shares as to
which an Option may be exercised.

 

(f)  Minimum
Vesting Prior To The Listing Date.
Notwithstanding the foregoing subsection, Options granted prior to the Listing
Date shall provide for vesting of the total number of shares at a rate of at
least twenty percent (20%) per year over five (5) years from the date the Option
was granted, subject to reasonable conditions such as continued employment.
However, in the case of such Options granted to officers, directors or
consultants (within the meaning of Section 260.140.41 of Title 10 of the
California Code of Regulations), the Option may become fully exercisable,
subject to reasonable conditions such as continued employment, at any time or
during any period established by the Company; for example, the vesting provision
of the Option may provide for vesting of less than twenty percent (20%) per year
of the total number of shares subject to the Option.

 

(g)  Termination
Of Continuous Service. In the
event an Optionee's Continuous Service terminates (other than upon the
Optionee's death or disability), the Optionee may exercise his or her Option (to
the extent that the Optionee was entitled to exercise it at the date of
termination) but only within such period of time ending on the earlier of (i)
the date three (3) months after the termination of the Optionee's Continuous
Service (or such longer or shorter period specified in the Option Agreement,
which, for Options granted prior to the Listing Date, shall not be less than
thirty (30) days unless such termination is for cause), or (ii) the expiration
of the term of the Option as set forth in the Option Agreement. If, after
termination, the Optionee does not exercise his or her Option within the time
specified in the Option Agreement, the Option shall terminate, and the shares
covered by such Option shall revert to and again become available for issuance
under the Plan.

 

(h)  Disability
Of Optionee. In the
event an Optionee's Continuous Service terminates as a result of the Optionee's
disability, the Optionee may exercise his or her Option, (to the extent such
Optionee was entitled to exercise it at the date of termination) but only within
such period of time ending on the earlier of (i) the date twelve (12) months
following such termination (or such longer or shorter period specified in the
Option Agreement, which, for Options granted prior to the Listing Date, shall
not be less than six (6) months) or (ii) the expiration of the term of the
Option as set forth in the Option Agreement. If, at the date of termination, the
Optionee is not entitled to exercise his or her entire Option, the shares
covered by the unexercisable portion of the Option shall revert to and again
become available for issuance under the Plan. If, after termination, the
Optionee does not exercise his or her Option within the time specified herein,
the Option shall terminate, and the shares covered by such Option shall revert
to and again become available for issuance under the Plan.

 

(i)  Death
Of Optionee. In the
event of the death of an Optionee during, or within a period specified in the
Option after the termination of, the Optionee's Continuous Status as an
Employee, Director, or Consultant, the Option may be exercised (to the extent
the Optionee was entitled to exercise the Option at the date of death) by the
Optionee's estate, by a person who acquired the right to exercise the Option by
bequest or inheritance or by a person designated to exercise the option upon the
Optionee's death pursuant to subsection 6(d), but only within the period ending
on the earlier of (i) the date eighteen (18) months following the date of death
(or such longer or shorter period specified in the Option Agreement, which, for
Options granted prior to the Listing Date, shall not be less than six (6)
months), or (ii) the expiration of the term of such Option as set forth in the
Option Agreement. If, at the time of death, the Optionee was not entitled to
exercise his or her entire Option, the shares covered by the unexercisable
portion of the Option shall revert to and again become available for issuance
under the Plan. If, after death, the Option is not exercised within the time
specified herein, the Option shall terminate, and the shares covered by such
Option shall revert to and again become available for issuance under the
Plan.

 

(j)  Early
Exercise. The
Option may, but need not, include a provision whereby the Optionee may elect at
any time before the Optionee's Continuous Service terminates to exercise the
Option as to any part or all of the shares subject to the Option prior to the
full vesting of the Option. Subject to the repurchase option limitations
specified in subsection 11(h), any unvested shares so purchased may be subject
to a repurchase right in favor of the Company or to any other restriction the
Board determines to be appropriate.

 

(k)  Re-Load
Options. Without
in any way limiting the authority of the Board or Committee to make or not to
make grants of Options hereunder, the Board or Committee shall have the
authority (but not an obligation) to include as part of any Option Agreement a
provision entitling the Optionee to a further Option (a "Re-Load Option") in the
event the Optionee exercises the Option evidenced by the Option agreement, in
whole or in part, by surrendering other shares of Common Stock in accordance
with this Plan and the terms and conditions of the Option Agreement. Any such
Re-Load Option (i) shall be for a number of shares equal to the number of shares
surrendered as part or all of the exercise price of such Option; (ii) shall have
an expiration date which is the same as the expiration date of the Option the
exercise of which gave rise to such Re-Load Option; and (iii) shall have an
exercise price which is equal to one hundred percent (100%) of the Fair Market
Value of the Common Stock subject to the Re-Load Option on the date of exercise
of the original Option or, in the case of a Re-Load Option which is an Incentive
Stock Option and which is granted to a ten percent (10%) shareholder (as
described in subsection 5(c)), shall have an exercise price which is equal to
one hundred ten percent (110%) of the Fair Market Value of the stock subject to
the Re-Load Option on the date of exercise of the original Option.

 

Any such
Re-Load Option may be an Incentive Stock Option or a Nonstatutory Stock Option,
as the Board or Committee may designate at the time of the grant of the original
Option; provided,
however, that
the designation of any Re-Load Option as an Incentive Stock Option shall be
subject to the one hundred thousand dollars ($100,000) annual limitation on
exercisability of Incentive Stock Options described in subsection 11(d) of the
Plan and in Section 422(d) of the Code. There shall be no Re-Load Options on a
Re-Load Option. Any such Re-Load Option shall be subject to the availability of
sufficient shares under subsection 4(a) and shall be subject to such other terms
and conditions as the Board or Committee may determine.

 

7.  Terms
Of Stock Bonuses And Purchases Of Restricted Stock.

 

Each
stock bonus or restricted stock purchase agreement shall be in such form and
shall contain such terms and conditions as the Board or the Committee shall deem
appropriate. The terms and conditions of stock bonus or restricted stock
purchase agreements may change from time to time, and the terms and conditions
of separate agreements need not be identical, but each stock bonus or restricted
stock purchase agreement shall include (through incorporation of provisions
hereof by reference in the agreement or otherwise) the substance of each of the
following provisions as appropriate:

 

(a)  Purchase
Price. The
purchase price under each restricted stock purchase agreement shall be such
amount as the Board or Committee shall determine and designate in such agreement
but in no event shall the purchase price be less than eighty five percent (85%)
of the stock's Fair Market Value on the date such award is made. Notwithstanding
the foregoing, the Board or the Committee may determine that eligible
participants in the Plan may be awarded stock pursuant to a stock bonus
agreement in consideration for past services actually rendered to the Company or
for its benefit. For grants prior to the Listing Date, the purchase price under
each restricted stock purchase agreement shall not be less than eighty-five
percent (85%) of the stock's Fair Market Value on the date such award is made or
at the time the purchase is consummated.

 

(b)  Transferability. Rights
to purchase shares under a stock bonus or restricted stock purchase agreement
granted prior to the Listing Date shall not be transferable except by will or by
the laws of descent and distribution, and shall be exercisable during the
lifetime of the person to whom the Stock Award is granted only by such person.
Rights to purchase shares under a stock bonus or restricted stock purchase
agreement granted on or after the Listing Date shall be transferable by the
grantee only upon such terms and conditions as are set forth in the applicable
Stock Award Agreement, as the Board shall determine in its discretion, so long
as stock awarded under such Stock Award Agreement remains subject to the terms
of the agreement.

 

(c)  Consideration. The
purchase price of stock acquired pursuant to a stock purchase agreement shall be
paid either: (i) in cash at the time of purchase; (ii) at the discretion of the
Board or the Committee, according to a deferred payment or other arrangement
with the person to whom the stock is sold; or (iii) in any other form of legal
consideration that may be acceptable to the Board or the Committee in their
discretion. Notwithstanding the foregoing, the Board or the Committee to which
administration of the Plan has been delegated may award stock pursuant to a
stock bonus agreement in consideration for past services actually rendered to
the Company or for its benefit.

 

(d)  Vesting. Subject
to the repurchase option limitations specified in subsection 11(h), shares of
stock sold or awarded under the Plan may, but need not, be subject to a
repurchase option in favor of the Company in accordance with a vesting schedule
to be determined by the Board or the Committee.

 

(e)  Termination
Of Continuous Service. Subject
to the repurchase option limitations specified in subsection 11(h), in the event
a Participant's Continuous Service terminates, the Company may repurchase or
otherwise reacquire any or all of the shares of stock held by that person which
have not vested as of the date of termination under the terms of the stock bonus
or restricted stock purchase agreement between the Company and such
person.

 

8.  Cancellation
And Re-Grant Of Options.

 

The Board
or the Committee shall have the authority to effect, at any time and from time
to time with the consent of any adversely affected Optionee, (i) the reduction
of the exercise price of any outstanding Option under the Plan to the then Fair
Market Value and/or (ii) the cancellation of any outstanding Options under the
Plan in exchange for (A) the grant of a stock bonus; (B) the grant of restricted
stock; (C) cash; (D) the grant in substitution therefor of new Options under the
Plan having an exercise price per share not less than as provided for new option
grants made under the Plan; or (E) any other valuable consideration (as
determined by the Board in its sole discretion). The Board shall determine the
exchange ratio (which may be for more or less shares of stock than those then
subject to the outstanding Option) in its sole discretion as well as all other
terms of the exchange not specifically provided for in this
paragraph.

 

9.  Covenants
Of The Company.

 

(a)  During
the terms of the Stock Awards, the Company shall keep available at all times the
number of shares of stock required to satisfy such Stock Awards.

 

(b)  The
Company shall seek to obtain from each regulatory commission or agency having
jurisdiction over the Plan such authority as may be required to issue and sell
shares of stock upon exercise of the Stock Award; provided,
however, that
this undertaking shall not require the Company to register under the Securities
Act either the Plan, any Stock Award or any stock issued or issuable pursuant to
any such Stock Award. If, after reasonable efforts, the Company is unable to
obtain from any such regulatory commission or agency the authority which counsel
for the Company deems necessary for the lawful issuance and sale of stock under
the Plan, the Company shall be relieved from any liability for failure to issue
and sell stock upon exercise of such Stock Awards unless and until such
authority is obtained.

 

10.  Use
Of Proceeds From Stock.

 

Proceeds
from the sale of stock pursuant to Stock Awards shall constitute general funds
of the Company.

 

11.  Miscellaneous.

 

(a)  The Board
shall have the power to accelerate the time at which a Stock Award may first be
exercised or the time during which a Stock Award or any part thereof will vest
in accordance with the Plan, notwithstanding the provisions in the Stock Award
stating the time at which it may first be exercised or the time during which it
will vest.

 

(b)  Neither
an Employee, Director or Consultant nor any person to whom a Stock Award is
transferred under subsection 6(d) or 7(b) shall be deemed to be the holder of,
or to have any of the rights of a holder with respect to, any shares subject to
such Stock Award unless and until such person has satisfied all requirements for
exercise of the Stock Award pursuant to its terms.

 

(c)  Prior to
the Listing Date, as required by Section 260.140.46 of Title 10 of the
California Code of Regulations, the Company shall deliver financial statements
to Participants at least annually. This subsection shall not apply to key
Employees whose duties in connection with the Company assure them access to
equivalent information.

 

(d)  Nothing
in the Plan or any instrument executed or Stock Award granted pursuant thereto
shall confer upon any Employee, Director, Consultant or other holder of Stock
Awards any right to continue in the employ of the Company or any Affiliate (or
to continue acting as a Director or Consultant) or shall affect the right of the
Company or any Affiliate to terminate the employment or relationship as a
Director or Consultant of any Employee, Director, Consultant or other holder of
Stock Awards with or without cause.

 

(e)  To the
extent that the aggregate Fair Market Value (determined at the time of grant) of
stock with respect to which Incentive Stock Options are exercisable for the
first time by any Optionee during any calendar year under all plans of the
Company and its Affiliates exceeds one hundred thousand dollars ($100,000), the
Options or portions thereof which exceed such limit (according to the order in
which they were granted) shall be treated as Nonstatutory Stock
Options.

 

(f)  The
Company may require any person to whom a Stock Award is granted, or any person
to whom a Stock Award is transferred pursuant to subsection 6(d) or 7(b), as a
condition of exercising or acquiring stock under any Stock Award, (i) to give
written assurances satisfactory to the Company as to such person's knowledge and
experience in financial and business matters and/or to employ a purchaser
representative reasonably satisfactory to the Company who is knowledgeable and
experienced in financial and business matters, and that he or she is capable of
evaluating, alone or together with the purchaser representative, the merits and
risks of exercising the Stock Award; and (ii) to give written assurances
satisfactory to the Company stating that such person is acquiring the stock
subject to the Stock Award for such person's own account and not with any
present intention of selling or otherwise distributing the stock. The foregoing
requirements, and any assurances given pursuant to such requirements, shall be
inoperative if (1) the issuance of the shares upon the exercise or acquisition
of stock under the Stock Award has been registered under a then currently
effective registration statement under the Securities Act, or (2) as to any
particular requirement, a determination is made by counsel for the Company that
such requirement need not be met in the circumstances under the then applicable
securities laws. The Company may, upon advice of counsel to the Company, place
legends on stock certificates issued under the Plan as such counsel deems
necessary or appropriate in order to comply with applicable securities laws,
including, but not limited to, legends restricting the transfer of the
stock.

 

(g)  To the
extent provided by the terms of a Stock Award Agreement, the person to whom a
Stock Award is granted may satisfy any federal, state or local tax withholding
obligation relating to the exercise or acquisition of stock under a Stock Award
by any of the following means or by a combination of such means: (1) tendering a
cash payment; (2) authorizing the Company to withhold shares from the shares of
the Common Stock otherwise issuable to the participant as a result of the
exercise or acquisition of stock under the Stock Award; or (3) delivering to the
Company owned and unencumbered shares of Common Stock.

 

(h)  The terms
of any repurchase option shall be specified in the Stock Award and may be either
at fair market value or at not less than the original purchase price. As
required by Section 260.140.41 and Section 260.140.42 of Title 10 of the
California Code of Regulations, any repurchase option in a Stock Award granted
prior to the Listing Date and held by a person other than an Officer, Director
or Consultant shall be upon the terms described below:

 

(i)  If
repurchase option gives the Company the right to repurchase the shares upon
termination of employment at not less than the fair market value of the shares
to be purchased on the date of termination of employment, then (1) the right to
repurchase shall be exercised for cash or cancellation of purchase money
indebtedness for the shares within ninety (90) days of termination of employment
(or in the case of shares issued upon exercise of Stock Awards after the date of
termination, within ninety (90) days after the date of the exercise) or such
longer period as may be agreed to by the Company and the Participant (for
example, for purposes of satisfying the requirements of Section 1202(c)(3) of
the Code regarding "qualified small business stock"), and (2) the right
terminates when the shares become publicly traded.

 

(ii)  If
repurchase option gives the Company the right to repurchase the shares upon
termination of employment at the original purchase price, then (1) the right to
repurchase at the original purchase price shall lapse at the rate of at least
twenty percent (20%) of the shares per year over five (5) years from the date
the Stock Award is granted (without respect to the date the Stock Award was
exercised or became exercisable) and (2) the right to repurchase shall be
exercised for cash or cancellation of purchase money indebtedness for the shares
within ninety (90) days of termination of employment (or in the case of shares
issued upon exercise of Options after the date of termination, within ninety
(90) days after the date of the exercise) or such longer period as may be agreed
to by the Company and the Participant (for example, for purposes of satisfying
the requirements of Section 1202(c)(3) of the Code regarding "qualified small
business stock").

 

12.  Adjustments
Upon Changes In Stock.

 

(a)  If any
change is made in the stock subject to the Plan, or subject to any Stock Award
(through merger, consolidation, reorganization, recapitalization, stock
dividend, dividend in property other than cash, stock split, liquidating
dividend, combination of shares, exchange of shares, change in corporate
structure or otherwise), the Plan will be appropriately adjusted in the
class(es) and maximum number of shares subject to the Plan pursuant to
subsection 4(a) and the outstanding Stock Awards will be appropriately adjusted
in class(es) and number of shares and price per share of stock subject to such
outstanding Stock Awards.

 

(b)  In the
event of a dissolution or liquidation of the Company, then, upon advance written
notice by the Company of at least ten (10) business days to the holders of any
Stock Awards outstanding under the Plan, such Stock Awards shall be terminated
if not exercised (if applicable) prior to such event.

 

(c)  In the
event of (1) a sale of substantially all of the assets of the Company, (2) a
merger or consolidation in which the Company is not the surviving corporation or
(3) a reverse merger in which the Company is the surviving corporation but the
shares of Common Stock outstanding immediately preceding the merger are
converted by virtue of the merger into other property, whether in the form of
securities, cash or otherwise, then any surviving corporation or acquiring
corporation shall assume any Stock Awards outstanding under the Plan or shall
substitute similar stock awards (including an award to acquire the same
consideration paid to the shareholders in the transaction described in this
subsection for those outstanding under the Plan. In the event any surviving
corporation or acquiring corporation refuses to assume such Stock Awards or to
substitute similar stock awards for those outstanding under the Plan, then with
respect to Stock Awards held by persons whose Continuous Service has not
terminated, the vesting of such Stock Awards (and, if applicable, the time
during which such Stock Awards may be exercised) shall be accelerated upon prior
written notice by the Company to the holders of such Stock Awards at least five
(5) business days prior to such event and the Stock Awards shall terminate if
not exercised (if applicable) at or prior to such event. With respect to any
other Stock Awards outstanding under the Plan, upon advance written notice by
the Company of at least five (5) business days to the holders of such Stock
Awards, such Stock Awards shall terminate if not exercised (if applicable) prior
to such event.

 

13.  Amendment
Of The Plan And Stock Awards.

 

(a)  The Board
at any time, and from time to time, may amend the Plan. However, except as
provided in Section 12 relating to adjustments upon changes in stock, no
amendment shall be effective unless approved by the shareholders of the Company
to the extent shareholder approval is necessary to satisfy the requirements of
Section 422 of the Code, Rule 16b-3 or any Nasdaq or securities exchange listing
requirements.

 

(b)  The Board
may in its sole discretion submit any other amendment to the Plan for
shareholder approval, including, but not limited to, amendments to the Plan
intended to satisfy the requirements of Section 162(m) of the Code and the
regulations promulgated thereunder regarding the exclusion of performance-based
compensation from the limit on corporate deductibility of compensation paid to
certain executive officers.

 

(c)  It is
expressly contemplated that the Board may amend the Plan in any respect the
Board deems necessary or advisable to provide eligible Employees, Directors or
Consultants with the maximum benefits provided or to be provided under the
provisions of the Code and the regulations promulgated thereunder relating to
Incentive Stock Options and/or to bring the Plan and/or Incentive Stock Options
granted under it into compliance therewith. 

 

(d)  Rights
and obligations under any Stock Award granted before amendment of the Plan shall
not be impaired by any amendment of the Plan unless (i) the Company requests the
consent of the person to whom the Stock Award was granted and (ii) such person
consents in writing.

 

(e)  The Board
at any time, and from time to time, may amend the terms of any one or more Stock
Award; provided,
however that the
rights and obligations under any Stock Award shall not be impaired by any such
amendment unless (i) the Company requests the consent of the person to whom the
Stock Award was granted and (ii) such person consents in writing.

 

14.  Termination
Or Suspension Of The Plan.

 

(a)  The Board
may suspend or terminate the Plan at any time. Unless sooner terminated, the
Plan shall terminate at the close of business on February 16, 2008, which shall
be within ten (10) years from the date the Plan is adopted by the Board or
approved by the shareholders of the Company, whichever is sooner.
Notwithstanding the foregoing, all Incentive Stock Options shall be granted, if
at all, no later than the last day preceding the tenth (10th) anniversary of the
earlier of (i) the date on which the latest increase in the maximum number of
shares issuable under the Plan was approved by the shareholders of the Company
or (ii) the date such amendment was adopted by the Board. No Stock Awards may be
granted under the Plan while the Plan is suspended or after it is
terminated.

 

(b)  Rights
and obligations under any Stock Award granted while the Plan is in effect shall
not be altered or impaired by suspension or termination of the Plan, except with
the consent of the person to whom the Stock Award was granted.

 

15.  Effective
Date Of Plan.

 

The Plan
shall become effective on the date adopted by the Board, but no Options or
rights to purchase restricted stock shall be exercised, and no stock bonuses
shall be granted under the Plan, unless and until the Plan has been approved by
the shareholders of the Company within twelve (12) months before or after the
date the Plan is adopted by the Board.QuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.35  

 
 

CORGENTECH INC.
  2003 EQUITY INCENTIVE PLAN    
    

 
 

STOCK OPTION GRANT NOTICE    
    

        CORGENTECH INC. (the "Company"), pursuant to its 2003 Equity Incentive Plan (the "Plan"), hereby grants to
Optionholder an option to purchase the number of shares of the Company's Common Stock set forth below. This option is subject to all of the terms and conditions as set forth herein and in the Stock
Option Agreement, the Plan and the Notice of Exercise, all of which are attached hereto and incorporated herein in their entirety. 

	

Optionholder:	
 	

 
	 	 	

	Date of Grant:	 	 
	 	 	

	Vesting Commencement Date:	 	 
	 	 	

	Number of Shares Subject to Option:	 	 
	 	 	

	Exercise Price (Per Share):	 	 
	 	 	

	Total Exercise Price:	 	 
	 	 	

	Expiration Date:	 	 
	 	 	

Type of Grant: Nonstatutory Stock Option 

Exercise Schedule:    ý  Same as Vesting Schedule
ý  Early Exercise Permitted 

Vesting Schedule:  

[Alternative Vesting Schedules to be Chosen at Time of Grant:

	1.
	25% of the shares vest one year after the Vesting Commencement Date and 1/48th of the shares vest monthly thereafter over the next three years.

 
	2.
	 1/48th of the shares vest monthly over four years from the Vesting Commencement Date.

 
	3.
	 1/12th of the shares shall vest on the one month anniversary of the Vesting Commencement Date and on each monthly anniversary thereafter until all shares
are fully vested
one year from the Vesting Commencement Date.

 
	4.
	 100% of the shares shall vest on the one year anniversary of the Vesting Commencement Date.]

The
vesting of this Option is subject to Optionholder's Continuous Service (as defined in the Plan). This vesting schedule may be accelerated as provided in the Plan and the Stock Option Agreement. 

Payment:    By one or a combination of the following items (described in the Stock Option Agreement): 

ý  By
cash or check

ý  Pursuant to a Regulation T Program if the Shares are publicly traded

ý  By delivery of already-owned shares if the Shares are publicly traded 

        Additional Terms/Acknowledgements:    The undersigned Optionholder acknowledges receipt of, and understands and agrees to, this
Stock Option Grant Notice, the Stock Option Agreement and the Plan. Optionholder further acknowledges that as of the Date of Grant, this Stock Option Grant Notice, the Stock Option Agreement and the
Plan set forth the entire understanding between Optionholder 

and
the Company regarding the acquisition of stock in the Company and supersede all prior oral and written agreements on that subject with the exception of (i) options previously granted and
delivered to Optionholder under the Plan, and (ii) the following agreements only: 

	 
	 	 

	 	OTHER AGREEMENTS:	 	 
	 	 	

	

 	
 	

	CORGENTECH INC.	 	OPTIONHOLDER:
	

By:	
 	

 	
 	

 	
 	

 
	 	 	
 John P. McLaughlin	 	
 Signature
	

Title:	
 	

Chief Executive Officer and President	
 	

Date:	
 	

 
	 	 	
	 	 	 	

	

Date:	
 	

 	
 	

 	
 	

 
	 	 	
	 	 	 	 

        ATTACHMENTS:    Stock Option Agreement, the Plan and the Notice of Exercise 

 
 

CORGENTECH INC.
  2003 EQUITY INCENTIVE PLAN    
    

 
 

STOCK OPTION AGREEMENT
  (NONSTATUTORY STOCK OPTION)    
    

        Pursuant to your Stock Option Grant Notice ("Grant Notice") and this Stock Option Agreement,
Corgentech Inc. (the "Company") has granted you an option under its 2003 Equity Incentive Plan (the
"Plan") to purchase the number of shares of the Company's Common Stock indicated in your Grant Notice at the exercise price indicated in your Grant
Notice. Defined terms not explicitly defined in this Stock Option Agreement but defined in the Plan shall have the same definitions as in the Plan. 

        The
details of your option are as follows: 

        1.    VESTING.    Subject to the limitations contained herein, your option will vest as
provided in your Grant Notice, provided that vesting will cease upon the termination of your Continuous Service and that your vesting may be accelerated as provided in the Plan. 

        2.    NUMBER OF SHARES AND EXERCISE PRICE.    The number of shares of Common Stock subject to
your option and your exercise price per share referenced in your Grant Notice may be adjusted from time to time for Capitalization Adjustments. 

        3.    EXERCISE RESTRICTION FOR NON-EXEMPT EMPLOYEES.    In the event that you are
an Employee eligible for overtime compensation under the Fair Labor Standards Act of 1938, as amended (i.e., a
"Non-Exempt Employee"), you may not exercise your option until you have completed at least six (6) months of Continuous Service
measured from the Date of Grant specified in your Grant Notice, notwithstanding any other provision of your option. 

        4.    EXERCISE PRIOR TO VESTING ("EARLY EXERCISE").    If permitted in your Grant Notice
(i.e., the "Exercise Schedule" indicates that "Early Exercise" of your option is permitted) and subject to the provisions of your option, you may elect
at any time that is both (i) during the period of your Continuous Service and (ii) during the term of your option, to exercise all or part of your option, including the nonvested portion
of your option; provided, however, that: 

        (a)   a partial exercise of your option shall be deemed to cover first vested shares of Common Stock and then the earliest
vesting installment of unvested shares of Common Stock; 

        (b)   any shares of Common Stock so purchased from installments that have not vested as of the date of exercise shall be
subject to the purchase option in favor of the Company as described in the Company's form of Early Exercise Stock Purchase Agreement; and 

        (c)   you shall enter into the Company's form of Early Exercise Stock Purchase Agreement with a vesting schedule that will
result in the same vesting as if no early exercise had occurred. 

        5.    METHOD OF PAYMENT.    Payment of the exercise price is due in full upon exercise of all
or any part of your option. You may elect to make payment of the exercise price in cash or by check or in any other manner permitted by your Grant
Notice, which may include one or more of the following: 

        (a)   In the Company's sole discretion at the time your option is exercised and provided that at the time of exercise the
Common Stock is publicly traded and quoted regularly in The Wall Street Journal, pursuant to a program developed under Regulation T as
promulgated by the Federal Reserve Board that, prior to the issuance of Common Stock, results in either the receipt of cash (or check) by the Company or the receipt of irrevocable instructions to pay
the aggregate exercise price to the Company from the sales proceeds. 

        (b)   Provided that at the time of exercise the Common Stock is publicly traded and quoted regularly in  The Wall Street Journal, by delivery of
already-owned shares of Common Stock either that you have held for the period required to avoid a charge to the
Company's reported earnings (generally six (6) months) or that you did not acquire, directly or indirectly from the Company, 

that
are owned free and clear of any liens, claims, encumbrances or security interests, and that are valued at Fair Market Value on the date of exercise. "Delivery" for these purposes, in the sole
discretion of the Company at the time you exercise your option, shall include delivery to the Company of your attestation of ownership of such shares of Common Stock in a form approved by the Company.
Notwithstanding the foregoing, you may not exercise your option by tender to the Company of Common Stock to the extent such tender would violate the provisions of any law, regulation or agreement
restricting the redemption of the Company's stock. 

        6.    WHOLE SHARES.    You may exercise your option only for whole shares of Common Stock. 

        7.    SECURITIES LAW COMPLIANCE.    Notwithstanding anything to the contrary contained herein,
you may not exercise your option unless the shares of Common Stock issuable upon such exercise are then registered under the Securities Act or, if such shares of Common Stock are not then so
registered, the Company has determined that such exercise and issuance would be exempt from the registration requirements of the Securities Act. The exercise of your option also must comply with other
applicable laws and regulations governing your option, and you may not exercise your option if the Company determines that such exercise would not be in material compliance with such laws and
regulations. 

        8.    TERM.    You may not exercise your option before the commencement or after the
expiration of its term. The term of your option commences on the Date of Grant and expires upon the earliest of the following: 

        (a)   three (3) months after the termination of your Continuous Service for any reason other than your Disability or
death; provided, however, that (i) if during any part of such three (3) month period your option is not exercisable solely because of the
condition set forth in Section 7, your option shall not expire until the earlier of the Expiration Date or until it shall have been exercisable for an aggregate period of three
(3) months after the termination of your Continuous Service and (ii) if (x) you are a Non-Exempt Employee, (y) you terminate your Continuous Service within six
(6) months after the Date of Grant specified in your Grant Notice, and (z) you have vested in a portion of your option at the time of your termination of Continuous Service, your option
shall not expire until the earlier of (A) the later of the date that is seven (7) months after the Date of Grant specified in your Grant Notice or the date that is three
(3) months after the termination of your Continuous Service or (B) the Expiration Date; 

        (b)   twelve (12) months after the termination of your Continuous Service due to your Disability; 

        (c)   eighteen (18) months after your death if you die either during your Continuous Service or within three
(3) months after your Continuous Service terminates; 

        (d)   the Expiration Date indicated in your Grant Notice; or 

        (e)   the day before the tenth (10th) anniversary of the Date of Grant. 

        9.    EXERCISE.    

        (a)   You may exercise the vested portion of your option (and the unvested portion of your option if your Grant Notice so
permits) during its term by delivering a Notice of Exercise (in a form designated by the Company) together with the exercise price to the Secretary of the Company, or to such other person as the
Company may designate, during regular business hours, together with such additional documents as the Company may then require. 

        (b)   By exercising your option you agree that, as a condition to any exercise of your option, the Company may require you to
enter into an arrangement providing for the payment by you to the Company of any tax withholding obligation of the Company arising by reason of (1) the exercise of your option, (2) the
lapse of any substantial risk of forfeiture to which the shares of Common Stock are subject at the time of exercise, or (3) the disposition of shares of Common Stock acquired upon such
exercise. 

        10.    TRANSFERABILITY.    Your option is not transferable, except by will or by the laws of
descent and distribution, and is exercisable during your life only by you. Notwithstanding the foregoing, by delivering written notice to the Company, in a form satisfactory to the Company, you may
designate a third party who, in the event of your death, shall thereafter be entitled to exercise your option. 

        11.    OPTION NOT A SERVICE CONTRACT.    Your option is not an employment or service contract,
and nothing in your option shall be deemed to create in any way whatsoever any obligation on your part to continue in the employ of the Company or an Affiliate, or of the Company or an Affiliate to
continue your employment. In addition, nothing in your option shall obligate the Company or an Affiliate, their respective stockholders, Boards of Directors, Officers or Employees to continue any
relationship that you might have as a Director or Consultant for the Company or an Affiliate. 

        12.    WITHHOLDING OBLIGATIONS.    

        (a)   At the time you exercise your option, in whole or in part, or at any time thereafter as requested by the Company, you
hereby authorize withholding from payroll and any other amounts payable to you, and otherwise agree to make adequate provision for (including by means of a "cashless exercise" pursuant to a program
developed under Regulation T as promulgated by the Federal Reserve Board to the extent permitted by the Company), any sums required to satisfy the federal, state, local and foreign tax
withholding obligations of the Company or an Affiliate, if any, which arise in connection with the exercise of your option. 

        (b)   Upon your request and subject to approval by the Company, in its sole discretion, and compliance with any applicable
legal conditions or restrictions, the Company may withhold from fully vested shares of Common Stock otherwise issuable to you upon the exercise of your option a number of whole shares of Common Stock
having a Fair Market Value, determined by the Company as of the date of exercise, not in excess of the minimum amount of tax required to be withheld by law (or such lower amount as may be necessary to
avoid variable award accounting). If the date of determination of any tax withholding obligation is deferred to a date later than the date of exercise of your option, share withholding pursuant to the
preceding sentence shall not be permitted unless you make a proper and timely election under Section 83(b) of the Code, covering the aggregate number of shares of Common Stock acquired upon
such exercise with respect to which such determination is otherwise deferred, to accelerate the determination of such tax withholding obligation to the date of exercise of your option. Notwithstanding
the filing of such election, shares of Common Stock shall be withheld solely from fully vested shares of Common Stock determined as of the date of exercise of your option that are otherwise issuable
to you upon such exercise. Any adverse consequences to you arising in connection with such share withholding procedure shall be your sole responsibility. 

        (c)   You may not exercise your option unless the tax withholding obligations of the Company and/or any Affiliate are
satisfied. Accordingly, you may not be able to exercise your option when desired even though your option is vested, and the Company shall have no obligation to issue a certificate for such shares of
Common Stock or release such shares of Common Stock from any escrow provided for herein unless such obligations are satisfied. 

        13.    NOTICES.    Any notices provided for in your option or the Plan shall be given in
writing and shall be deemed effectively given upon receipt or, in the case of notices delivered by mail by the Company to you, five (5) days after deposit in the United States mail, postage
prepaid, addressed to you at the last address you provided to the Company. 

        14.    GOVERNING PLAN DOCUMENT.    Your option is subject to all the provisions of the Plan,
the provisions of which are hereby made a part of your option, and is further subject to all interpretations, amendments, rules and regulations, which may from time to time be promulgated and adopted
pursuant to the Plan. In the event of any conflict between the provisions of your option and those of the Plan, the provisions of the Plan shall control. 

QuickLinks

CORGENTECH INC. 2003 EQUITY INCENTIVE PLAN

STOCK OPTION GRANT NOTICE

CORGENTECH INC. 2003 EQUITY INCENTIVE PLAN

STOCK OPTION AGREEMENT (NONSTATUTORY STOCK OPTION)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]