Document:

exv10w2

Exhibit 10.2

AMENDED AND RESTATED

IXIA 2008 EQUITY INCENTIVE PLAN

1.Establishment and Purposes of the Plan.

Ixia hereby establishes this Amended and Restated Ixia 2008 Equity Incentive Plan to promote
the interests of the Company and its shareholders by (i) helping to attract and retain the services
of selected key employees and directors of the Company who are in a position to make material
contributions to the successful operation of the Company’s business, (ii) motivating such persons
to achieve the Company’s business goals and (iii) enabling such persons to participate in the
long-term growth and financial success of the Company by providing them with an opportunity to
purchase stock of the Company.

2.Definitions.

The following definitions shall apply throughout the Plan:

a. “Affiliate” shall mean any entity that directly or indirectly through one or more
intermediaries controls or is controlled by, or is under common control with, the Company.

b. “Award” shall mean any Option, Restricted Stock Award, Restricted Stock Unit, or SAR
granted pursuant to the provisions of the Plan.

c. “Award Agreement” shall mean any written agreement, contract or other instrument or
document, including without limitation an Option Agreement, a Restricted Stock Award Agreement, a
Restricted Stock Unit Award Agreement or a Stock Appreciation Right Award Agreement, evidencing and
reflecting the terms of any Award granted by the Committee hereunder in such form or forms as the
Committee (subject to the terms and conditions of the Plan) may from time to time approve.

d. “Board” shall mean the Board of Directors of Ixia.

e. “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.
References in the Plan to any section of the Code shall be deemed to include any amendment or
successor provisions to such section and any regulations issued under such section.

f. “Common Stock” shall mean the common stock, without par value, of the Company.

g. “Company” shall mean Ixia, a California corporation, any “subsidiary” corporation, whether
now or hereafter existing, as defined in Sections 424(f) and (g) of the Code, and any Affiliate,
whether now or hereafter existing.

h. “Committee” shall mean the committee of the Board appointed in accordance with Section 4(a)
of the Plan or, if no such committee shall be appointed or in office, the Board, provided

 

 

that any Award approved by the Board shall also have been approved by a majority of the Ixia’s
“independent directors” within the meaning of the Marketplace Rules of The NASDAQ Stock Market LLC.

i. “Continuous Status as an Employee” shall mean the absence of any interruption or
termination of employment by the Company. Continuous Status as an Employee shall not be considered
interrupted in the case of sick leave or military leave or in the case of transfers between
locations of the Company. The Committee shall have the sole discretion to determine whether any
other leave of absence shall constitute an interruption or termination of status as an employee.
Notwithstanding the foregoing, the determination of whether an interruption or termination of
employment or service has occurred shall be made in a manner consistent with Section 409A of the
Code, to the extent necessary to avoid the adverse tax consequences thereunder.

j. “Director” shall mean a member of the Board.

k. “Employee” shall mean any employee of the Company, including officers and Directors who are
also employees and, for purposes of eligibility for Awards other than Incentive Stock Options,
shall mean any consultant to the Company, whether or not employed by the Company, and any
Non-Employee Director.

l. “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

m. “Dividend Equivalent” shall mean any right granted under Section 10 of this Plan.

n. “Fair Market Value” shall mean, with respect to Shares, the fair market value per Share on
the date of determination as determined by the Board in its sole discretion, exercised in good
faith; provided, however, that where there is a public market for the Common Stock,
the fair market value per Share shall be the average of the closing bid and asked prices of the
Common Stock on the date of determination (or, if there are no such prices for such date, on the
first preceding day on which there were such reported prices) as reported in The Wall Street
Journal or as reported in such other manner as the Board deems reliable and consistent with the
requirements of Code Section 409A (or, if not so reported, as otherwise reported by the National
Association of Securities Dealers Automated Quotations System) or, in the event the Common Stock is
listed on a stock exchange, the fair market value per Share shall be the closing price on the
exchange on the date of determination (or, if there are no sales on such date, on the first
preceding day on which there were reported sales), as reported in The Wall Street Journal
or as reported in such other manner as the Board deems reliable and consistent with the
requirements of Code Section 409A.

o. “Freestanding SAR” means a SAR that is granted independently of any Options, as described
in Section 11.

p. “Grant Price” means the price established at the time of grant of a SAR pursuant to Section
11, used to determine whether there is any payment due upon exercise of the SAR.

q. “Incentive Stock Option” shall mean an Option intended to qualify as an incentive stock
option within the meaning of Section 422 of the Code.

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r. “Ixia” shall mean Ixia, a California corporation, or any successor thereto.

s. “Non-Employee Director” shall mean a Director who is not an employee of the Company.

t. “Nonstatutory Stock Option” shall mean an Option which is not an Incentive Stock Option.

u. “Option” shall mean a stock option to purchase Common Stock granted to a Participant
pursuant to the Plan.

v. “Option Agreement” means a written agreement substantially in the form attached hereto, or
such other form or forms as the Committee (subject to the terms and conditions of the Plan) may
from time to time approve, evidencing and reflecting the terms of an Option.

w. “Optioned Stock” shall mean the Common Stock subject to an Option granted pursuant to the
Plan.

x. “Participant” shall mean any Employee who is granted an Award.

y. “Permitted Transferee” shall have the meaning set forth in Section 13.

z. “Plan” shall mean this Amended and Restated Ixia 2008 Equity Incentive Plan.

aa. “Restricted Stock Award” shall mean any Shares granted under Section 9 of this Plan and
issued with the restriction that the holder may not sell, transfer, pledge or assign such Shares
and with such other vesting and other restrictions as the Committee, in its sole discretion, may
impose, which restrictions may lapse separately or in combination at such time or times, in
installments or otherwise, as the Committee may deem appropriate.

bb. “Restricted Stock Award Agreement” means a written agreement substantially in the form
attached hereto, or such other form or forms as the Committee (subject to the terms and conditions
of the Plan) may from time to time approve, evidencing and reflecting the terms of a Restricted
Stock Award.

cc. “Restricted Stock Unit” shall mean any unit granted under Section 10 of this Plan
evidencing the right to receive one Share at some future date.

dd. “Restricted Stock Unit Award Agreement” means a written agreement substantially in the
form attached hereto, or such other form or forms as the Committee (subject to the terms and
conditions of the Plan) may from time to time approve, evidencing and reflecting the terms of a
Restricted Stock Unit Award.

ee. “SAR” means an Award, designated as a SAR, pursuant to the terms of Section 11 of this
Plan.

ff. “SAR Award Agreement” means a written agreement substantially in the form attached hereto,
or such other form or forms as the Committee (subject to the terms and conditions

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of the Plan) may from time to time approve, evidencing and reflecting the terms of the grant
of a SAR.

gg. “Securities Act” shall mean the Securities Act of 1933, as amended.

hh. “Shares” shall mean shares of the Common Stock, any shares into which such Shares may be
converted in accordance with Section 14 of the Plan and, to the extent a Participant would not
become subject to the adverse tax consequences under Code Section 409A, such other securities or
property as may become subject to Awards pursuant to this Plan.

ii. “Tandem SAR” means a SAR that is granted in connection with a related Option pursuant to
Section 7 herein, the exercise of which shall require forfeiture of the right to purchase a Share
under the related Option (and when a Share is purchased under the Option, the Tandem SAR shall
similarly be canceled).

jj. “Termination for Cause” shall mean termination of employment or service as a result of (i)
any act or acts by the Participant constituting a felony under any federal, state or local law;
(ii) the Participant’s willful and continued failure to perform the duties assigned to him or her
as an Employee; (iii) any material breach by the Participant of any agreement with the Company
concerning his or her employment or service or any other understanding concerning the terms and
conditions of employment by, or service with, the Company; (iv) dishonesty, gross negligence or
malfeasance by the Participant in the performance of his or her duties as an Employee, or any
conduct by the Participant which involves a material conflict of interest with any business of the
Company or Affiliate; (v) the Participant’s taking or knowingly omitting to take any other action
or actions in the performance of Participant’s duties as an Employee without informing appropriate
members of management to whom such Participant reports, which action or actions, in the
determination of the Committee, have caused or substantially contributed to the material
deterioration in the business of the Company or any Affiliate, taken as a whole; (vi) the
Participant’s failure to follow any Company policy; or (vii) the Participant’s breach of any
confidentiality obligations to the Company. The Company shall furnish written notice to the
Participant of the facts warranting a Termination for Cause.

3.Shares Reserved.

a. Maximum Shares. The maximum aggregate number of Shares reserved for issuance
pursuant to the Plan shall be 11,572,295 Shares (or the number of shares of stock to which such
Shares shall be adjusted as provided in Section 14 of the Plan); provided, however,
that no more than 5,000,000 of such Shares (or the number of shares of stock to which such Shares
shall be adjusted as provided in Section 14 of the Plan) shall be available for issuance pursuant
to Restricted Stock Units and Restricted Stock Awards. Nothing herein shall be construed as
limiting the number of Shares available for issuance under the Plan as Options or SARs. The number
of Shares reserved for issuance under the Plan may be set aside out of authorized but unissued
Shares not reserved for any other purpose, or (to the extent permitted under applicable law) out of
issued Shares acquired for and held in the treasury of the Company from time to time.

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b. Unissued Shares. Shares subject to, but not sold or issued under, any Award
terminating, expiring, forfeited or canceled for any reason prior to issuance of such Shares shall
again become available for Awards thereafter granted under the Plan and the same shall not be
deemed an increase in the number of Shares reserved for issuance under the Plan..

4.Award Limits.

The maximum number of Shares, as represented by Options, Restricted Stock Awards, Restricted
Stock Units and SARs, which may be awarded under the Plan during any calendar year to any one
Participant is 1,000,000 (as may be adjusted pursuant to Section 14 herein, but only to the extent
that such adjustment will not affect the status of any Award intended to qualify as
performance-based compensation under Section 162(m) of the Code) Shares. If an Award held by an
Employee or consultant of the Company is canceled, the canceled Award shall continue to be counted
against the maximum number of Shares for which Awards may be granted to such Employee or consultant
and any replacement Award granted to such Employee or consultant shall also count against such
limit.

5.Administration of the Plan.

a. The Plan shall be administered by a Committee designated by the Board to administer the
Plan and consisting of not less than three Directors and subject to such terms and conditions as
the Board may prescribe. Members of the Committee who are eligible for Awards or have been granted
Awards may vote on any matters affecting the administration of the Plan or the grant of any Awards
pursuant to the Plan, except that no such member shall act upon the granting of an Award to himself
or herself, but any such member may be counted in determining the existence of a quorum at any
meeting of the Committee during which action is taken with respect to the granting of Awards to him
or her. Each member of the Committee shall be (i) an “outside director” as defined in the Treasury
regulations issued pursuant to Section 162(m) of the Code, (ii) a “non-employee director” as
defined in Rule 16b-3 promulgated under the Exchange Act and (iii) an “independent director” as
defined in the Marketplace Rules of The NASDAQ Stock Market LLC. Members of the Committee shall
serve for such period of time as the Board may determine. From time to time the Board may increase
the size of the Committee and appoint additional members thereto, remove members (with or without
cause) and appoint new members in substitution therefor, fill vacancies however caused or remove
all members of the Committee and thereafter provide for members of the Board who are meet the
foregoing requirements of the Code, Rule 16b-3 and the Marketplace Rules to directly administer the
Plan. Members of the Committee shall serve for such period of time as the Board may determine.
Notwithstanding the foregoing, in administering this Plan with respect to Awards for Non-Employee
Directors, the Board shall exercise the powers of the Committee after obtaining the recommendation
of the Committee.

b. Subject to the provisions of the Plan, the Committee shall have the authority in its sole
discretion to: (i) determine the type or types of Awards (i.e., Incentive Stock Options,
Nonstatutory Stock Options, SARs, Restricted Stock Awards or Restricted Stock Units) to be granted
to each Participant in the Plan, (ii) determine the Fair Market Value per Share in accordance with
the terms of the Plan, (iii) determine the exercise price of Options to be granted to Employees in
accordance with the terms of the Plan, (iv) determine the Employees to whom, and the time or

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times at which, Awards shall be granted and the number of Shares subject to each Award, (v)
prescribe, amend and rescind rules and regulations relating to the Plan, subject to the limitations
set forth in Section 16 of the Plan, (vi) determine the terms and provisions of each Award granted
to Participants under the Plan and each Award Agreement (which need not be identical with the terms
of other Awards and Award Agreements) and, with the consent of the Participant, to modify or amend
an outstanding Award Agreement; provided, however, that the Committee shall not
have the authority to amend or adjust the exercise price of any Options previously granted to a
Participant under the Plan, whether through amendment, cancellation, replacement grant or
otherwise, without the approval of the shareholders of the Company obtained in the manner provided
in Section 15 of the Plan, (vii) accelerate the exercise date of any Option or SAR or the vesting
of any Restricted Stock Award or Restricted Stock Unit, (viii) determine whether any Participant
will be required to execute a stock purchase agreement or other agreement as a condition to the
issuance of Shares pursuant to an Award, and to determine the terms and provisions of any such
agreement (which need not be identical with the terms of any other such agreement) and, with the
consent of the Participant, to amend any such agreement, (ix) interpret the Plan or any agreement
entered into with respect to the grant of Awards and the issuance of Shares upon exercise of
Options or the vesting of Restricted Stock Units, (x) determine the eligibility of an Employee for
benefits hereunder and the amount thereof, (xi) authorize any person to execute on behalf of the
Company any instrument required to effectuate the grant of an Award previously granted or to take
such other actions as may be necessary or appropriate with respect to the Company’s rights pursuant
to Awards or agreements relating to the grant or exercise thereof and (xii) make such other
determinations and establish such other procedures as it deems necessary or advisable for the
administration of the Plan.

c. All decisions, determinations and interpretations of the Committee shall be final and
binding on all Participants and any other holders of any Awards granted under the Plan.

d. The Committee shall keep minutes of its meetings and of the actions taken by it without a
meeting. A majority of the Committee shall constitute a quorum and the actions of a majority at a
meeting, including a telephone meeting, at which a quorum is present or acts approved in writing by
a majority of the members of the Committee without a meeting shall constitute acts of the
Committee.

e. The Company shall pay all original issue and transfer taxes with respect to the grant of
Awards and/or the issue and transfer of Shares pursuant to the exercise of Options or SARs or the
vesting of Restricted Stock Awards or Restricted Stock Units and all other fees and expenses
necessarily incurred by the Company in connection therewith; provided, however,
that the person exercising an Option or SAR or to whom an Award is granted or to whom Shares are
otherwise issued pursuant to the Plan shall be responsible for all payroll, withholding, income and
other taxes incurred by such person on the date of exercise of the Option or of issuance or vesting
of Shares, as applicable.

6.Eligibility.

Awards may be granted under the Plan only to Employees; provided, however,
that consultants and Non-Employee Directors shall not be eligible to receive Incentive Stock
Options. An Employee who has been granted Awards may, if he or she is otherwise eligible, be
granted additional Awards. References in this Plan to “employment” and related terms (except for

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references to “employee” in the definition of “Employee”) shall include the providing of
services as a consultant or Director.

7.Terms and Conditions of Options.

Options granted pursuant to the Plan by the Committee shall be either Incentive Stock Options
or Nonstatutory Stock Options and shall be evidenced by an Option Agreement providing, in addition
to such other terms as the Board may deem advisable, the following terms and conditions:

a. Time of Granting Options. The date of grant of an Option shall for all purposes be
the date on which the Committee makes the determination granting such Option; provided,
however, that if the Committee determines that such grant shall be made as of some future
date, the date of grant shall be such future date. Notice of the determination shall be given to
each Participant within a reasonable time after the date of such grant.

b. Number of Shares. Each Option Agreement shall state the number of Shares to which
it pertains and whether such Option is intended to constitute an Incentive Stock Option or a
Nonstatutory Stock Option. Notwithstanding any provision in this Plan to the contrary, an Option
that is intended to constitute an Incentive Stock Option may only be granted to an Employee who is
neither a consultant nor a Non-Employee Director.

c. Exercise Price. The exercise price per Share for the Shares to be issued pursuant
to the exercise of an Option shall be such price as is determined by the Board; provided,
however, that such price shall in no event be less than 100% of the Fair Market Value per
Share on the date of grant of an Option.

    In the case of any Incentive Stock Option granted to an Employee who at the time of grant owns
or is deemed to own (by reason of the attribution rules applicable under Section 424(d) of the Code
or otherwise) stock possessing more than ten percent of the total combined voting power of all
classes of stock of the Company or any parent or subsidiary corporations of the Company, the
exercise price per Share shall be no less than 110% of the Fair Market Value per Share on the date
of grant.

d. Medium and Time of Payment. The consideration to be paid for the Shares to be
issued upon exercise of an Option shall consist entirely of cash or check payable to the Company or
such other consideration and method of payment permitted under any laws to which the Company is
subject and which is approved by the Committee, including without limitation (i) by delivery of a
promissory note, (ii) by tendering previously acquired Shares (valued at Fair Market Value as of
the date of tender) that have been owned for a period of at least six months (or such other period
as is necessary to avoid accounting charges against the Company’s earnings), (iii) if Shares are
traded on a national securities exchange or NASDAQ, through the delivery of irrevocable
instructions to a broker to deliver promptly to the Company an amount equal to the exercise price,
or (iv) any combination of (i), (ii) and (iii). In connection with all exercises of Options and
regardless of the medium of payment, the Participant shall pay in cash any amount necessary to
satisfy the Company’s withholding obligations.

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e. Term of Options. The term of each Option may be up to ten years from the date of
grant thereof; provided, however, that the term of an Incentive Stock Option
granted to an Employee who, at the time the Incentive Stock Option is granted, owns or is deemed to
own (by reason of the attribution rules of Section 424(d) of the Code) stock possessing more than
ten percent of the total combined voting power of all classes of stock of the Company, shall be
five years from the date of grant thereof or such shorter term as may be provided in the Option
Agreement.

The term of any Option may be less than the maximum term provided for herein as specified by
the Committee upon grant of the Option and as set forth in the Option Agreement.

f. Maximum Amount of Incentive Stock Options. To the extent that the aggregate Fair
Market Value (determined at the time an Incentive Stock Option is granted) of the Shares with
respect to which Incentive Stock Options are exercisable for the first time by a Participant during
any calendar year under all incentive stock option plans of the Company exceeds $100,000, the
Options in excess of such limit shall be treated as Nonstatutory Stock Options.

8.Exercise of Option.

a. In General. Any Option granted hereunder to a Participant shall be exercisable at
such times and under such conditions as may be determined by the Committee and as shall be
permissible under the terms of the Plan, including any performance criteria with respect to the
Company and/or the Participant as may be determined by the Committee.

An Option may be exercised in accordance with the provisions of the Plan as to all or any
portion of the Shares then exercisable thereunder from time to time during the term of the Option.
However, an Option may not be exercised for a fraction of a Share.

b. Procedure. An Option shall be deemed to be exercised when written notice of such
exercise has been given to the Company at its principal business office in accordance with the
terms of the Option Agreement by the person entitled to exercise the Option and full payment for
the Shares with respect to which the Option is exercised has been received by the Company, together
with (i) any other agreements required by the terms of the Plan and/or Option Agreement or as
required by the Committee and (ii) payment by the Participant of all payroll, withholding or income
taxes incurred in connection with such Option exercise (or arrangements for the collection or
payment of such tax satisfactory to the Board are made).

c. Decrease in Available Shares. Exercise of an Option in any manner shall result in
a decrease in the number of Shares which thereafter may be available, both for purposes of the Plan
and for sale under the Option, by the number of Shares as to which the Option is exercised, except
if the Option is exercised by tendering Shares, either actually or by attestation.

d. Exercise of Shareholder Rights. Until the Option is properly exercised in
accordance with the terms of this Section 8, no right to vote or receive dividends or any other
rights as a shareholder shall exist with respect to the Optioned Stock. No adjustment shall be
made for a dividend or other right for which the record date is prior to the date the Option is
exercised except as provided in Section 14 of the Plan.

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e. Termination of Eligibility; Non-Director Awards. If a Participant who is not a
Director ceases to serve as an Employee for any reason other than death or permanent and total
disability (within the meaning of Section 22(e)(3) of the Code) or Termination for Cause and
thereby terminates his or her Continuous Status as an Employee, he or she may, but only within 90
days following the date he or she ceases his or her Continuous Status as an Employee (subject to
any earlier termination of the Option as provided by its terms), exercise his or her Option to the
extent that he or she was entitled to exercise it at the date of such termination. To the extent
that he or she was not entitled to exercise the Option at the date of such termination, or if he or
she does not exercise such Option (which he or she was entitled to exercise) within the time
specified herein, the Option shall terminate. Notwithstanding anything to the contrary herein, the
Committee may at any time and from time to time prior to the termination of a Nonstatutory Stock
Option, with the consent of the Participant, extend the period of time during which the Participant
may exercise his or her Nonstatutory Stock Option following the date he or she ceases his or her
Continuous Status as an Employee; provided, however, that the maximum period of
time during which a Nonstatutory Stock Option shall be exercisable following the date on which a
Participant terminates his or her Continuous Status as an Employee shall not exceed the original
term of such Option as set forth in the Option Agreement and that notwithstanding any extension of
time during which a Nonstatutory Stock Option may be exercised, such Option, unless otherwise
amended by the Committee, shall only be exercisable to the extent the Participant was entitled to
exercise the Option on the date he or she ceased his or her Continuous Status as an Employee;
provided, further, that no extension shall be made at any time where the exercise price per Share
of such Option is less than the Fair Market Value of one Share at the time of such proposed
extension, unless it is determined that such extension will not cause the Participant to incur
additional tax and interest charges upon exercise of such Option under Section 409A of the Code.

f. Death or Disability of Participant; Non-Director Awards. If the Continuous
Status as an Employee of a Participant who is not a Director ceases due to death or permanent and
total disability (within the meaning of Section 22(e)(3) of the Code) of the Participant, the
Option may be exercised within 180 days (or such other period of time not exceeding one year as is
determined by the Committee at the time of granting the Option) following the date of death or
termination of employment due to permanent or total disability (subject to any earlier termination
of the Option as provided by its terms), by the Participant in the case of permanent or total
disability, or in the case of death by the Participant’s estate or by a person who acquired the
right to exercise the Option by bequest or inheritance, but in any case (unless otherwise
determined by the Committee at the time of granting the Option) only to the extent the Participant
was entitled to exercise the Option at the date of his or her termination of employment by death or
permanent and total disability. To the extent that he or she was not entitled to exercise such
Option at the date of his or her termination of employment by death or permanent and total
disability, or if he or she does not exercise such Option (which he or she was entitled to
exercise) within the time specified herein, the Option shall terminate. Notwithstanding anything
to the contrary herein, the Committee may at any time and from time to time prior to the
termination of a Nonstatutory Stock Option, with the consent of the Participant, extend the period
of time during which the Participant may exercise his or her Nonstatutory Stock Option following
the date he or she ceases his or her Continuous Status as an Employee; provided,
however, that the maximum period of time during which a Nonstatutory Stock Option shall be
exercisable following the date on which a Participant terminates his or her Continuous Status as an
Employee shall not exceed the original term of such Option as set forth in

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the Option Agreement and that notwithstanding any extension of time during which a
Nonstatutory Stock Option may be exercised, such Option, unless otherwise amended by the Committee,
shall only be exercisable to the extent the Participant was entitled to exercise the Option on the
date he or she ceased his or her Continuous Status as an Employee; provided, further, that no
extension shall be made at any time where the exercise price per Share of such Option is less than
the Fair Market Value of one Share at the time of such proposed extension, unless it is determined
that such extension will not cause the Participant to incur additional tax and interest charges
upon exercise of such Option under Section 409A of the Code.

g. Termination of Eligibility; Director Awards. The preceding Sections 8(e) and 8(f)
shall not apply with respect to a Participant’s Awards to the extent such Awards were made to the
Participant in his or her capacity as a Director. If a Participant ceases to be a Director for any
reason other than Termination for Cause, he or she (or his or her beneficiary or representative in
the event of termination of service as a result of death or permanent and total disability ) may
exercise his or her Option through its original expiration date to the extent that the Option was
vested and he or she was entitled to exercise the Option on the date of such termination of service
as a Director. To the extent that he or she was not entitled to exercise the Option at the date of
such termination of service, or if he or she (or his or her beneficiary or representative in the
event of termination of service as a result of death or permanent and total disability) does not
exercise the Option (which he or she was entitled to exercise) within the time specified herein
(i.e., prior to its expiration date), the Option shall terminate.

h. Termination for Cause. If a Participant’s Continuous Status as an Employee with
the Company terminates due to his or her Termination for Cause, he or she shall immediately forfeit
all outstanding Options.

i. Expiration of Option. Notwithstanding any provision in the Plan, including but not
limited to the provisions set forth in Sections 8(e), 8(f) and 8(g), an Option may not be
exercised, under any circumstances, after the expiration of its term.

j. Conditions on Exercise and Issuance. As soon as practicable after any proper
exercise of an Option in accordance with the provisions of the Plan, the Company shall (i) deliver
to the Participant at the principal executive office of the Company or such other place as shall be
mutually agreed upon between the Company and the Participant, a certificate or certificates
representing the Shares for which the Option shall have been exercised or (ii) otherwise arrange
for such Shares to be issued to the Participant. The time of issuance and, if applicable, delivery
of the certificate or certificates representing the Shares for which the Option shall have been
exercised may be postponed by the Company for such period as may be required by the Company, with
reasonable diligence, to comply with any law or regulation applicable to the issuance or delivery
of such Shares.

Options granted under the Plan are conditioned upon the Company obtaining any required permit
or order from the appropriate governmental agencies authorizing the Company to issue such Options
and Shares issuable upon exercise thereof. Shares shall not be issued pursuant to the exercise of
an Option unless the exercise of such Option and the issuance and delivery of such Shares pursuant
thereto shall comply with all relevant provisions of law, including, without limitation, the
Securities Act, the Exchange Act, applicable state law, the rules and regulations promulgated
thereunder and the requirements of the Marketplace Rules of The NASDAQ Stock

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Market LLC and any stock exchange upon which the Shares may then be listed. Any such issuance
may be further subject to the approval of counsel for the Company with respect to such compliance.

9.Terms and Conditions of Restricted Stock Awards.

a. Grant. Restricted Stock Awards may be granted hereunder by the Committee to
Employees either alone or in addition to other Awards granted under the Plan. A Restricted Stock
Award shall be subject to such terms and conditions as may be determined by the Committee and may
be subject to vesting conditioned upon the satisfaction of such requirements, conditions (such as a
condition that the Participant’s right to the Shares shall vest in installments over a period of
time during which services are to be provided to the Company by the Employee), restrictions or
performance criteria as shall be established by the Committee and set forth in the Award Agreement.
During any period during which Shares acquired pursuant to a Restricted Stock Award are subject to
vesting conditions, such Shares may not be sold, exchanged, transferred, pledged, assigned or
otherwise disposed of by the Participant. The provisions of Restricted Stock Awards need not be
the same with respect to each Participant receiving such awards. The Committee has absolute
discretion to determine whether any consideration is to be received by the Company as a condition
precedent to the issuance of Restricted Stock Awards. The terms of any Restricted Stock Award
granted under this Plan shall be set forth in a written Award Agreement which shall contain
provisions determined by the Committee which are not inconsistent with the Plan.

b. Rights of Holders of Restricted Stock. Beginning on the date of grant of a
Restricted Stock Award and subject to execution of the Award Agreement, the Participant shall
become a shareholder of the Company with respect to all Shares subject to the Restricted Stock
Award and shall have all of the rights of a shareholder, including the right to vote the Shares
subject to the Restricted Stock Award and the right to receive distributions made with respect to
such Shares; provided, however, that any Shares or any other property (other than
cash) distributed as a dividend or otherwise with respect to any such Shares as to which the
restrictions have not yet lapsed shall be subject to the same restrictions as the Shares subject to
the Restricted Stock Award.

c. Delivery of Shares. Shares issued upon the grant of Restricted Stock Awards shall,
unless otherwise determined by the Committee, be maintained in the custody of or on behalf of the
Company until all applicable vesting conditions have been satisfied. Shares subject to Restricted
Stock Awards that are no longer subject to restrictions shall be delivered to the Participant
promptly after the applicable restrictions lapse or are waived. Notwithstanding anything to the
contrary set forth herein, but subject to Section 18(j) hereof, delivery of Shares pursuant to a
Restricted Stock Award shall be made no later than 2 1/2 months after the close of the Company’s
first taxable year in which such Shares are no longer subject to a substantial risk of forfeiture
(within the meaning of Section 409A of the Code).

d. Termination of Continuous Status as an Employee. Unless otherwise determined by
the Committee or unless otherwise provided in the Award Agreement evidencing the Award, in the
event of the termination of a Participant’s Continuous Status as an Employee, Shares which are
subject to a Participant’s Restricted Stock Award which are not vested as of the date of such
termination shall be automatically forfeited by the Participant and cancelled by the Company for no
value.

11

 

e. Waiver of Forfeiture. The Committee may, when it finds that a waiver would be in
the best interests of the Company and subject to such terms and conditions as the Committee shall
deem appropriate, waive in whole or in part any remaining vesting restrictions with respect to any
Restricted Stock Award or any other conditions set forth in any Award Agreement.

10.Terms and Conditions of Restricted Stock Units.

a. Grant. Restricted Stock Units may be issued hereunder to Employees either alone or
in addition to other Awards granted under the Plan. A Restricted Stock Unit is a bookkeeping entry
that represents the right to receive one Share to be issued and delivered at the end of the
applicable vesting period, subject to a risk of cancellation and to the other terms and conditions
set forth in the Plan and in any Award Agreement evidencing the Restricted Stock Unit and subject
to any additional terms and conditions established by the Committee. The Company shall establish
and maintain accounts for Participants in which the Company shall record Restricted Stock Units and
the transactions and events affecting such units. Restricted Stock Units and other items reflected
in the account will represent only bookkeeping entries by the Company to evidence the Company’s
unfunded obligations. The provisions of Restricted Stock Units need not be the same with respect
to each Participant receiving such Awards. The Committee has absolute discretion to determine
whether any consideration is to be received by the Company as a condition precedent to the grant of
a Restricted Stock Unit. The terms of any Restricted Stock Unit granted under this Plan shall be
set forth in a written Award Agreement which shall contain provisions determined by the Committee
which are not inconsistent with the Plan.

b. Rights of Holders of Restricted Stock Units; Dividend Equivalents. Unless the
Committee otherwise provides in an Award Agreement for Restricted Stock Units, any Participant
holding Restricted Stock Units shall have no rights as a shareholder of the Company with respect to
such Restricted Stock Units. The Committee shall be authorized to establish procedures pursuant to
which the Company’s payment of any Restricted Stock Unit may be deferred in a manner that would not
trigger the adverse tax consequences under Code Section 409A. Subject to the provisions of the
Plan and any Award Agreement, the recipient of a Restricted Stock Unit may, if so determined by the
Committee, be entitled to receive, currently (or on a deferred basis, but in such a case subject to
the same vesting restrictions as the Restricted Stock Unit to which such dividend relates, with
such deferral to last no longer than the vesting period to which such Restricted Stock Unit is
subject) and with respect to the number of Shares covered by the Award, payments (“Dividend
Equivalents”) in amounts equivalent to cash, stock or other property paid by the Company as
dividends on the Company’s Common Stock prior to the vesting of the Restricted Stock Units in a
manner that would not trigger the adverse tax consequences under Code Section 409A.

c. Delivery of Shares in Settlement of Restricted Stock Units. Restricted Stock Units
(if not previously cancelled) will be automatically settled on or about the vesting date or dates
set forth in the Award Agreement evidencing the Award. The Company may make delivery of Shares in
settlement of Restricted Stock Units by either delivering one or more stock certificates
representing such Shares to the Participant, registered in the name of the Participant, or by
depositing such Shares into an account maintained for the Participant and established in connection
with any Company plan or arrangement providing for investment in Common Stock of the Company.
Notwithstanding anything to the contrary set forth herein, but subject to Section 18(j), delivery
of Shares pursuant to a Restricted Stock Unit shall be made no later than 2 1/2 months after the
close of

12

 

the Company’s first taxable year in which such Shares are no longer subject to a substantial
risk of forfeiture (within the meaning of Section 409A of the Code).

d. Termination of Continuous Status as an Employee. Unless otherwise determined by
the Committee or unless otherwise provided in the Award Agreement evidencing the Award, in the
event of the termination of a Participant’s Continuous Status as an Employee, the Participant’s
Restricted Stock Units which are not vested as of the date of such termination shall not vest and
shall automatically be cancelled for no value and without issuance of any Shares.

e. Waiver of Forfeiture. The Committee may, when it finds that a waiver would be in
the best interests of the Company and subject to such terms and conditions as the Committee shall
deem appropriate, waive in whole or in part any remaining vesting restrictions with respect to any
Restricted Stock Units or any other conditions set forth in any Award Agreement.

11.Share Appreciation Rights

a. Grant of SARs. Subject to the terms and conditions of the Plan, SARs may be granted
to Participants at any time and from time to time as shall be determined by the Committee. The
Committee may grant Freestanding SARs, Tandem SARs or any combination of Freestanding and Tandem
SARs.

Subject to the terms and conditions of the Plan, the Committee shall have complete discretion
in determining the number of SARs granted to each Participant and, consistent with the provisions
of the Plan, in determining the terms and conditions pertaining to such SARs.

The Grant Price for each SAR shall be determined by the Committee and shall be specified in
the SAR Award Agreement. The Grant Price shall not be less than 100% of the Fair Market Value per
Share on the date of grant.

b. SAR Award Agreement. Each SAR Award shall be evidenced by a SAR Award Agreement
that shall specify the Grant Price, the term of the SAR, and such other provisions as the Committee
shall determine in its sole discretion and which are not inconsistent with this Plan.

c. Term of SAR. The term of a SAR granted under the Plan shall be determined by the
Committee, in its sole discretion, and except as determined otherwise by the Committee and
specified in the SAR Award Agreement, no SAR shall be exercisable later than the tenth anniversary
date of its grant.

d. Exercise of Freestanding SARs. Freestanding SARs may be exercised upon whatever
terms and conditions the Committee, in its sole discretion, imposes.

e. Exercise of Tandem SARs. Tandem SARs may be exercised for all or part of the Shares
subject to the related Option upon the surrender of the right to exercise the equivalent portion of
the related Option. A Tandem SAR may be exercised only with respect to the Shares for which its
related Option is then exercisable.

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Notwithstanding any other provision of this Plan to the contrary, with respect to a Tandem
SAR: (a) the Tandem SAR will expire no later than the expiration of the underlying Option; (b) the
exercise of the Tandem SAR may not have economic and tax consequences more favorable than the
exercise of the Option followed by an immediate sale of the underlying Shares, and the value of the
payout with respect to the Tandem SAR may be for no more than 100% of the excess of the Fair
Market Value of the Shares subject to the underlying Option at the time the Tandem SAR is exercised
over the exercise price of the underlying Option; (c) the Tandem SAR may be exercised only when the
Fair Market Value of the Shares subject to the Option exceeds the exercise price of the Option; (d)
the Tandem SAR may be exercised only when the underlying Option is eligible to be exercised; and
(e) the Tandem SAR is transferable only when the underlying Option is transferable, and under the
same conditions.

f. Payment of SAR Amount. SARs granted under this Plan shall be payable in Shares,
cash or such other property as may be designated by the Committee. Upon the exercise of a SAR, a
Participant shall be entitled to receive from the Company such number of Shares (or, in the case of
SARs exercisable for cash or other property, cash or property with a value equal to the fair market
value of such number of Shares on the date of exercise) determined by multiplying:

	 	(i)	 	The excess of the Fair Market Value of a Share on the date of
exercise over the Grant Price; by
	 
	 	(ii)	 	The number of Shares with respect to which the SAR is
exercised.

Such product shall then be divided by the Fair Market Value of a Share on the date of
exercise. The resulting number (rounded down to the next whole number) is the number of Shares to
be issued to the Participant upon exercise of a SAR.

g. Termination of Continuous Status as an Employee. Each SAR Award Agreement shall set
forth the extent to which the Participant shall have the right to exercise the SAR following
termination of the Participant’s employment with or provision of services to the Company. Such
provisions shall be determined in the sole discretion of the Committee, shall be included in the
SAR Award Agreement entered into with Participants, need not be uniform among all SARs issued
pursuant to this Plan, and may reflect distinctions based on the reasons for termination.

h. Other Restrictions. The Committee shall impose such other conditions and/or
restrictions on any Shares received upon exercise of a SAR granted pursuant to the Plan as it may
deem advisable or desirable. These restrictions may include, but shall not be limited to, a
requirement that the Participant hold the Shares received upon exercise of a SAR for a specified
period of time.

12.Code Section 162(m) Provisions

a. Application to Covered Employee. Notwithstanding any other provision of the Plan,
if the Committee determines at the time an Option, SAR, Restricted Stock, or Restricted Stock Unit
Award is granted to a Participant that such Participant is, or is likely to be as of the end of the
tax year in which the Company would claim a tax deduction in connection with such Award, a

14

 

“covered employee” within the meaning of Section 162(m)(3) of the Code, then the Committee may
qualify such an Award as “performance-based compensation” pursuant to Section 162(m) of the Code.
The Committee has complete discretion concerning whether a particular Award should be qualified as
“performance-based compensation.” If the Committee determines that a particular Award should
qualify as “performance-based compensation,” the provisions of this Section 11, to the extent
applicable, shall control over any contrary provision in the Plan.

b. Performance Goals. Restricted Stock and Restricted Stock Unit Awards may be made
subject to the achievement of performance goals established by the Committee relating to one or
more business criteria (the “Performance Criteria”) pursuant to Section 162(m) of the Code.
Performance Criteria may be applied to the Company, an Affiliate, a Subsidiary, division, business
unit or individual or any combination thereof and may be measured in absolute levels or relative to
another company or companies, a peer group, an index or indices or Company performance in a
previous period. Performance may be measured annually or cumulatively over a longer period of
time. Performance Criteria that may be used to establish performance goals are: revenue; operating
income or net operating income; orders, return on equity; return on assets or net assets; cash
flow; share price performance; return on capital; earnings; earnings per share; shareholder return
and/or value (including but not limited to total shareholder return); economic value added;
economic profit; ratio of operating earnings to capital spending; EBITDA; EBIT; costs; operating
earnings; gains; product development; client development; leadership; project progress; project
completion; increase in total revenues; net income; operating cash flow; net cash flow; retained
earnings; budget achievement; return on capital employed; return on invested capital; cash
available to Company from a subsidiary or subsidiaries; expense spending; gross margin; net margin;
market capitalization; customer satisfaction; financial return ratios; market share; operating
profits (including earnings before or after income taxes, depreciation and amortization); net
profits; earnings per share growth; profit returns and margins; stock price; working capital;
business trends; production cost; project milestones; capacity utilization; quality; economic value
added; operating efficiency; diversity; debt; dividends; bond ratings; corporate governance; and
health and safety. The performance goals for each Participant and the amount payable if those
goals are met shall be established in writing for each specified period of performance by the
Committee no later than 90 days after the commencement of the period of service to which the
performance goals relate and while the outcome of whether or not those goals will be achieved is
substantially uncertain. However, in no event will such goals be established after 25% of the
period of service to which the goals relate has elapsed. The performance goals shall be objective.
Such goals and the amount payable for each performance period if the goals are achieved shall be
set forth in the applicable Award Agreement. No amounts shall be payable to any Participant for
any performance period unless and until the Committee certifies that the performance goals and any
other material terms were in fact satisfied.

c. Adjustment of Payment. Notwithstanding any provision of the Plan, with respect to
any Award that is subject to this Section, the Committee may adjust downwards, but not upwards, the
amount payable pursuant to such Award.

d. Other Restrictions. The Committee shall have the power to impose such other
restrictions on Awards subject to this Section as it may deem necessary or appropriate to ensure
that such Awards satisfy all requirements for “performance-based compensation” within the meaning
of Section 162(m)(4)(C) of the Code, or any successor provision thereto.

15

 

13.Nontransferability of Awards.

Except as otherwise provided in a Participant’s Award Agreement or otherwise determined at any
time by the Committee, no Awards granted under the Plan, and no Shares subject to any such Awards,
that have not been issued or as to which any applicable vesting restriction, performance or
deferral period has not lapsed, may be sold, pledged, assigned, hypothecated, gifted, transferred
or disposed of in any manner, either voluntarily or involuntarily by operation of law, other than
by will or by the laws of descent or distribution or transfers between spouses incident to a
divorce. Furthermore, except as otherwise provided in a Participant’s Award Agreement or otherwise
determined at any time by the Committee, Options and SARs may be exercised during the life of the
Participant only by the Participant or the Participant’s guardian or legal representative.
Notwithstanding the foregoing, a Participant may assign or transfer an Award (other than an ISO)
with the consent of the Committee (each transferee thereof, a “Permitted Transferee”), which
consent may be granted or withheld in the Committee’s sole discretion, provided that such Permitted
Transferee shall be bound by and subject to all of the terms and conditions of the Plan and the
Award Agreement relating to the transferred Award and shall execute an agreement satisfactory to
the Company evidencing such obligations; and, provided further, that such Participant shall remain
bound by the terms and conditions of the Plan. The Company shall cooperate with any Permitted
Transferee and the Company’s transfer agent in effectuating any transfer permitted under this
Section 13. With respect to those Awards, if any, that are permitted to be transferred to another
individual, references in the Plan to exercise of the Award by the Participant or payment of any
amount or issuance of any Shares to the Participant shall be deemed to include the Participant’s
Permitted Transferee.

14.Adjustment upon Change in Corporate Structure.

a. Subject to any required action by the shareholders of the Company, the number and type of
Shares covered by each outstanding Award, and the number and type of Shares which have been
authorized for issuance under the Plan but as to which no Awards have yet been granted or which
have been returned to the Plan upon cancellation, expiration or forfeiture of an Award, as well as
the exercise or purchase price per Share, as applicable, covered by outstanding Awards, shall be
proportionately adjusted for any increase or decrease in the number of issued Shares resulting from
a stock split, reverse stock split or combination or the payment of a stock dividend (but only on
the Common Stock) or reclassification of the Common Stock or any other increase or decrease in the
number of issued Shares effected without receipt of consideration by the Company (other than stock
awards to Employees); provided, however, that the conversion of any convertible
securities of the Company shall not be deemed to have been effected without the receipt of
consideration. Any such adjustment shall be determined in good faith by the Committee to be
appropriate in order to prevent dilution or enlargement of the benefits or potential benefits
intended to be made available under the Plan, and the Committee’s determination in that respect
shall be final, binding and conclusive. Except as expressly provided herein, no issue by the
Company of shares of stock of any class, or securities convertible into shares of stock of any
class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number
or price of Shares subject to the Plan or an Award.

b. In the event of the proposed dissolution or liquidation of the Company, or in the event of
a proposed sale of all or substantially all of the assets of the Company (other than in the

16

 

ordinary course of business), or the merger or consolidation of the Company with or into
another corporation, as a result of which the Company is not the surviving and controlling
corporation, the Board shall, to the extent such action would not trigger the adverse tax
consequences under Code Section 409A, (i) make provision for the assumption of outstanding Awards
by the successor corporation, (ii) declare that any Option shall terminate as of a date fixed by
the Board which is at least 30 days after the notice thereof to the Participant and shall give each
Participant the right to exercise his or her Option as to all or any part of the Optioned Stock,
including Shares as to which the Option would not otherwise be exercisable provided such exercise
does not violate Section 8(i) of the Plan, (iii) accelerate the vesting of Restricted Stock Awards
and Restricted Stock Units, or (iv) cause any Award outstanding as of the effective date of any
such event to be cancelled in consideration of a cash payment or grant of an alternative option or
award (whether by the Company or any entity that is a party to the transaction), or a combination
thereof, to the holder of the cancelled Award, provided that such payment and/or grant are
substantially equivalent in value to the fair market value of the cancelled Award as determined by
the Committee.

c. No fractional shares of Common Stock shall be issuable on account of any action aforesaid,
and the aggregate number of shares into which Shares then covered by an Award, when changed as the
result of such action, shall be reduced to the largest number of whole shares resulting from such
action, unless the Board, in its sole discretion, shall determine to issue scrip certificates in
respect to any fractional shares, which scrip certificates shall be in a form and have such terms
and conditions as the Board in its discretion shall prescribe.

d. Any adjustment or action taken by the Board pursuant to this Section 14 shall be carried
out in accordance with Code Section 424, if applicable, and only if such action would not trigger
the adverse consequences of Code Section 409A.

15.Shareholder Approval.

Effectiveness of this Plan is subject to approval by the shareholders of the Company within 12
months before or after the date the Plan was initially adopted by the Board; provided,
however, that Options may be granted pursuant to the Plan subject to subsequent approval of
the Plan by such shareholders. Any Option exercised before shareholder approval was obtained can
be rescinded if shareholder approval is not obtained within 12 months before or after the Plan was
adopted by the Board. Shareholder approval of the Plan or any amendment thereto required to be
approved by the shareholders of the Company shall be obtained (i) by the affirmative vote of the
holders of a majority of the Shares present or represented and entitled to vote thereon at a
meeting of shareholders duly held in accordance with the laws of the State of California or (ii) by
written consent of the holders of the outstanding Shares having not less than the minimum number of
votes that would be necessary to authorize the approval at a meeting of the shareholders duly held
in accordance with the laws of the State of California.

16.Amendment and Termination of the Plan.

a. Amendment and Termination. The Board may amend or terminate the Plan from time to
time in such respects as the Board may deem advisable, subject to any requirement for shareholder
approval imposed by applicable law, including the rules and
regulations of The NASDAQ Stock Market LLC or any stock exchange on which Shares are listed or quoted, and shall

17

 

make any amendments which may be required so that Options intended to be Incentive Stock
Options shall at all times continue to be Incentive Stock Options for the purpose of Section 422 of
the Code; provided, however, that without approval of the Company’s shareholders,
no such revision or amendment shall (i) materially increase the benefits accruing to participants
under the Plan; (ii) increase the number of Shares which may be issued under the Plan, other than
in connection with an adjustment under Section 14 of the Plan; (iii) materially modify the
requirements as to eligibility for participation in the Plan; (iv) materially change the
designation of the class of Employees eligible to be granted Awards; (v) remove the administration
of the Plan from the Board or its Committee; or (vi) extend the term of the Plan beyond the maximum
term set forth in Section 19 hereunder.

b. Effect of Amendment or Termination. Except as otherwise provided in Section 14 of
the Plan, and except to the extent necessary to avoid the imposition of additional tax and/or
interest under Code Section 409A with respect to Awards that are treated as nonqualified deferred
compensation, any amendment or termination of the Plan shall not affect Awards already granted, and
such Awards shall remain in full force and effect as if the Plan had not been amended or
terminated, unless mutually agreed otherwise between the Participant and the Company, which
agreement must be in writing and signed by the Participant and the Company. Notwithstanding
anything to the contrary herein, this Plan shall not adversely affect, unless mutually agreed in
writing by the Company and a Participant, the terms and provisions of any Award granted prior to
the date the Plan was approved by shareholders as provided in Section 15 of the Plan.

17.Indemnification.

No member of the Board or its Committee shall be liable for any act or action taken, whether
of commission or omission, except in circumstances involving willful misconduct, or for any act or
action taken, whether of commission or omission, by any other member or by any officer, agent or
Employee. In addition to such other rights of indemnification they may have as members of the
Board, or as members of the Committee, the Board and the Committee shall be indemnified by the
Company against reasonable expenses, including attorneys’ fees actually and necessarily incurred in
connection with the defense of any action, suit or proceeding, or in connection with any appeal
therein, to which they or any of them may be a party by reason of any action taken, by commission
or omission, in connection with the Plan or any Award granted thereunder, and against all amounts
paid by them in settlement thereof (provided such settlement is approved by independent legal
counsel selected by the Company) or paid by them in satisfaction of a judgment in any action, suit
or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit
or proceeding that a Board or Committee member is liable for willful misconduct in the performance
of his or her duties; provided that within 60 days after institution of any such action, suit or
proceeding, such Board or Committee member shall in writing have offered the Company the
opportunity, at its own expense, to handle and defend the same. The payment of any amount in
satisfaction of the indemnification right described in this Section 17 shall occur no later than
the last day of the taxable year following the taxable year in which the expenses were incurred.
Any right to such indemnification shall not be subject to liquidation or exchange for another
benefit, and no such indemnification in any taxable year shall in any way affect the expenses
eligible for reimbursement or indemnification, or in-kind benefits to be provided, in any other
taxable year.

18

 

18.General Provisions.

a. Withholding or Deduction for Taxes. The grant of Awards hereunder and the issuance
of Shares and all payments and distributions pursuant to this Plan are conditioned upon the
Company’s reservation of the right to withhold, in accordance with any applicable law, from any
compensation or other amounts payable to the Participant, any taxes required to be withheld under
Federal, state or local law as a result of the: (i) grant of any Award, (ii) exercise of any
Option, (iii) sale of Shares issued upon exercise of Options, (iv) delivery of Shares, cash or
other property, (v) lapse of restrictions in connection with any Award, or (vi) any other event
occurring pursuant to the Plan. To the extent that compensation and other amounts, if any, payable
to the Participant are insufficient to pay any taxes required to be so withheld, the Company may,
in its sole discretion, require the Participant, including without limitation, as a condition of
the exercise of any Option, to pay in cash to the Company an amount sufficient to cover such tax
liability or otherwise to make adequate provision for the delivery to the Company of cash necessary
to satisfy the Company’s withholding obligations under Federal and state law. The Committee shall
be authorized to establish procedures for election by Participants to satisfy such obligations for
the payment of such taxes by tendering previously acquired Shares (either actually or by
attestation, valued at their then Fair Market Value) that have been owned for a period of at least
six months (or such other period as may be necessary to avoid accounting charges against the
Company’s earnings), or by directing the Company to retain Shares (up to the Participant’s minimum
required tax withholding rate) otherwise deliverable in connection with the Award.

b. Other Plans. Nothing contained in the Plan shall prohibit the Company from
establishing additional incentive compensation arrangements.

c. No Enlargement of Rights. Neither the Plan, nor the granting of Awards, nor any
other action taken pursuant to the Plan shall constitute or be evidence of any agreement or
understanding, express or implied, that the Company will retain an Employee for any period of time,
or at any particular rate of compensation. Nothing in the Plan shall be deemed to limit or affect
the right of the Company to discharge any Employee at any time for any reason or no reason.

No Employee shall have any right to or interest in Awards authorized hereunder prior to the
grant thereof to such eligible person, and upon such grant he or she shall have only such rights
and interests as are expressly provided herein and in the related Award Agreement, subject,
however, to all applicable provisions of the Company’s Articles of Incorporation, as the same may
be amended from time to time.

d. Notice. Any notice to be given to the Company pursuant to the provisions of the
Plan shall be addressed to the Company in care of its Secretary (or such other person as the
Company may designate from time to time) at its principal office, and any notice to be given to a
Participant to whom an Award is granted hereunder shall be delivered personally or addressed to him
or her at the address given beneath his or her signature on his or her Award Agreement, or at such
other address as such Participant or his or her transferee (upon any permitted transfer) may
hereafter designate in writing to the Company. Any such notice shall be deemed duly given when
enclosed in a properly sealed envelope or wrapper addressed as aforesaid, registered or certified,
and deposited, postage and registry or certification fee prepaid, in a post office or branch post
office regularly maintained by the United States Postal Service. It shall be the obligation of
each

19

 

Participant holding Shares purchased upon exercise of an Option or otherwise issued pursuant
to Awards hereunder to provide the Secretary of the Company, by letter mailed as provided
hereinabove, with written notice of his or her direct mailing address.

e. Applicable Law. To the extent that Federal laws do not otherwise control, the Plan
shall be governed by and construed in accordance with the laws of the State of California, without
regard to the conflict of laws rules thereof.

f. Incentive Stock Options. The Company shall not be liable to a Participant or other
person if it is determined for any reason by the Internal Revenue Service or any court having
jurisdiction that any Incentive Stock Options are not incentive stock options as defined in Section
422 of the Code.

g. Information to Participants. The Company shall provide without charge to each
Participant copies of its annual financial statements (which need not be audited), which may be
included within such annual and periodic reports as are provided by the Company to its shareholders
generally.

h. Availability of Plan. A copy of the Plan shall be delivered to the Secretary of
the Company and shall be shown by him or her to any eligible person making reasonable inquiry
concerning it.

i. Severability. In the event that any provision of the Plan is found to be invalid
or otherwise unenforceable under any applicable law, such invalidity or unenforceability shall not
be construed as rendering any other provisions contained herein as invalid or unenforceable, and
all such other provisions shall be given full force and effect to the same extent as though the
invalid or unenforceable provision was not contained herein.

j. Form of Shares and Restricted Stock Awards; Stop Transfer Orders. Shares issued or
delivered under the Plan, including Shares subject to any Restricted Stock Award, may be evidenced
in such manner as the Committee in its sole discretion shall deem appropriate, including, without
limitation, book-entry registration or issuance of a stock certificate or certificates. In the
event any stock certificate is issued in respect of a Restricted Stock Award, such certificate
shall bear an appropriate legend referring to the terms, conditions and restrictions applicable to
such Award. All certificates for Shares delivered under the Plan pursuant to any Award shall be
subject to such stop transfer orders and other restrictions as the Committee may deem advisable
under the rules, regulations and other requirements of the Securities and Exchange Commission, any
stock exchange or quotation system upon which the Shares are then listed or quoted, and any
applicable federal or state securities law, and the Committee may cause a legend or legends to be
put on any such certificates to make appropriate reference to such restrictions.

k. Unfunded Status of the Plan. The Plan is intended to constitute an “unfunded” plan
for incentive compensation. With respect to any payments not yet made to a Participant by the
Company, nothing contained herein shall give any such Participant any rights that are greater than
those of a general creditor of the Company. In its sole discretion, the Committee may authorize
the creation of trusts or other arrangements to meet the obligations created under the Plan to
deliver the

20

 

Shares or payments in lieu of or with respect to Awards hereunder; provided,
however, that the existence of such trusts or other arrangements is consistent with the
unfunded status of the Plan.

l. Compliance with Code Section 409A/Taxes. It is intended that no Award granted
under this Plan shall be subject to any interest or additional tax under Section 409A of the Code.
In the event Code Section 409A is amended after the date hereof, or regulations or other guidance
is promulgated after the date hereof that would make an Award under the Plan subject to the
provisions of Code Section 409A, then the terms and conditions of this Plan shall be interpreted
and applied, to the extent possible, in a manner to avoid the imposition of the provisions of Code
Section 409A. Notwithstanding the preceding, the Participant shall be responsible for any and all
tax liabilities, including liability under 409A (but excluding the employer’s share of employment
taxes) with respect to an Award.

m. Performance Conditions. The Committee may require the satisfaction of certain
performance goals as a condition to the grant or vesting of any Award provided under the Plan.

19.Effective Date and Term of Plan.

The original Plan became effective upon shareholder approval at the 2008 Annual Meeting of
Shareholders of the Company in accordance with the shareholder approval provisions of Section 15.
This Amended and Restated Plan shall become effective upon shareholder approval at the 2010 Annual
Meeting of Shareholders of the Company in accordance with the shareholder approval provisions of
Section 15. This Amended and Restated Plan shall not become effective if not approved by the
shareholders of the Company at the Company’s 2010 Annual Meeting of Shareholders, and in such case,
the original Plan shall continue in full force and effect. This Plan shall continue in effect for a
term of ten years following the date of shareholder approval of the original Plan unless sooner
terminated under Section 16 of the Plan.

21

 

AMENDED AND RESTATED IXIA

2008 EQUITY INCENTIVE PLAN

Stock Option Agreement

Ixia (“Company”) hereby grants to you an Option under the Amended and Restated
Ixia 2008 Equity Incentive Plan (the “Plan”) to purchase the number of shares
of Company Common Stock set forth below.

	 	 	 
	Name:
	 	 
	 
	 	 
	Employee ID #:
	 	 
	 
	 	 
	Date of Grant:
	 	 
	 
	 	 
	Type of Option:

	 	[NSO/ISO]
	 
	 	 
	Number of Shares:
	 	 
	 
	 	 
	Exercise Price:
	 	 
	 
	 	 
	Payment:

	 	[e.g., Payment of the exercise price and applicable taxes may be made
(i) by cash or check and/or (ii) pursuant to a “Cashless” exercise (see Option
Terms and Conditions attached hereto).]

	 
	 	 
	Vesting Schedule:

	 	[e.g.,                      shares on M/D/Y and as to the remaining
                     shares in [12] equal [quarterly] installments, with the first such
installment vesting on M/D/Y, and one additional installment vesting on the
last day of each calendar quarter thereafter, as long as you remain an employee
of the Company.]

	 
	 	 
	Expiration Date:

	 	[e.g., This Option will expire at 5:00 p.m., Pacific Time, on
the [seven] year anniversary of the date of grant; provided, however, that in
the event of your termination of employment or service with the Company or your
disability or death, the provisions of Sections 6 and 7 of the Option Terms and
Conditions attached hereto shall apply to your right to exercise the Option.]

	 
	 	 
	 

	 	This Stock Option Agreement
consists of this page and of
the Option Terms and
Conditions attached hereto.
By signing below, you accept
the grant of this Option and
agree that this Option is
subject in all respects to
the terms and conditions of
the Plan. Copies of the
Plan and Prospectus
containing information
concerning the Plan are
attached or are available
upon                      upon request
to                      at (818)
                     or
                    @ixiacom.com.

	 
	 	 
	You further acknowledge and agree that (i) you have carefully reviewed this
Stock Option Agreement (including the Option Terms and Conditions attached
hereto) and the Plan and (ii) this Stock Option Agreement and the Plan set
forth the entire understanding between you and the Company regarding this
Option and supersede all prior oral and written agreements with respect
thereto.

IXIA

	 	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	Print Name:	 	 	 	 	Date	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Participant Signature
	 	 	 	Date	 	 

 

 

AMENDED AND RESTATED IXIA 2008 EQUITY INCENTIVE PLAN

Stock Option Agreement - Option Terms and Conditions

The following Terms and Conditions apply to the stock option granted by Ixia (“Company”) to
the Participant whose name appears on the Stock Option Agreement to which these Terms and
Conditions are attached.

	1.	 	Amended and Restated Ixia 2008 Equity Incentive Plan. This Option is in all respects
subject to the terms, definitions and provisions of the Amended and Restated Ixia 2008 Equity
Incentive Plan (the “Plan”) adopted by Ixia and incorporated herein by reference. The terms
defined in the Plan shall have the same meanings herein.

	 
	2.	 	Nature of the Option. This Option is intended to be [a nonstatutory stock option and is
not intended to be an incentive stock option] or [an incentive stock option] within
the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”).

	 
	3.	 	Method of Payment. The aggregate exercise price of the Shares purchased upon an exercise, in
whole or in part, of the Option may be paid:

	 	(a)	 	Payment in Cash. In the form of a check made payable to the Company or its
designated agent or cash, including cash from funds deposited in the “OptionsLink”
online securities account maintained by a Participant with E*Trade Securities LLC
(“E*Trade”) as an employee of the Company or such other brokerage firm as may be
designated by the Company in connection with any Company plan or arrangement providing
for investment in Common Stock of the Company; or

	 
	 	(b)	 	Cashless Exercise. Through a special sale and remittance procedure commonly
referred to as a “cashless exercise” or “sell to cover” transaction pursuant to which
the Participant (or any other person(s) entitled to exercise the Option) shall
concurrently provide irrevocable written instructions:

	 	(i)	 	to such third party service provider as may be designated by
the Company, including without limitation E*Trade (through your on-line
account) or such other brokerage firm as may be designated by the Company in
connection with any Company plan or arrangement providing for investment in
Common Stock of the Company to effect the immediate sale of a sufficient number
of the Shares purchased upon the exercise of the Option to enable such
third-party (e.g., E*Trade or other designated third party) to remit, out of
the sales proceeds available upon the settlement date, sufficient funds to the
Company to cover the aggregate exercise price payable for the purchased Shares
plus all applicable federal, state and local income and employment taxes
required to be withheld by the Company by reason of such exercise and/or sale;
and

	 
	 	(ii)	 	to the Company to deliver any certificate(s) or other evidence
of ownership for the purchased Shares directly to such third party (e.g.,
E*Trade or other designated third party) in order to complete the sale
transaction.

	4.	 	Exercise of Option. This Option shall be exercisable during its term only in accordance with
the terms and provisions of the Plan and this Option as follows:

	 	(a)	 	This Option shall vest and be exercisable cumulatively as set forth on the
first page of the Stock Option Agreement. A Participant who has maintained his or her
Continuous Status as an Employee since the grant of this Option may exercise the
exercisable portion of his or her Option in whole or in part at any time during his or
her employment; provided, however, that an Option may not be exercised
for a fraction of a Share. In the event that a Participant terminates employment with
the

 

 

	 	 	 	Company, is disabled or dies, the provisions of Sections 6 or 7 below shall apply to
the right of the Participant to exercise the Option except as otherwise provided in
the Plan,.

	 
	 	(b)	 	This Option shall be exercisable by following such procedures as may from time
to time be prescribed by the Company, E*Trade (in connection with the OptionsLink
online securities account maintained by you with E*Trade as an employee of the Company)
or such other brokerage firm as may be designated by the Company in connection with any
Company plan or arrangement providing for investment in Common Stock of the Company.

	 
	 	(c)	 	No rights of a shareholder shall exist with respect to the Shares under this
Option as a result of the mere grant of this Option or the exercise of this Option.
Such rights shall exist only after issuance of a stock certificate or electronic
transfer of the shares to the Participant’s brokerage account in accordance with the
Plan.

	5.	 	Restrictions on Exercise. This Option may not be exercised if the issuance of Shares upon
Participant’s exercise or the method of payment of consideration for such Shares would
constitute a violation of any applicable Federal or state securities law or other applicable
law or regulation. As a condition to the exercise of this Option, the Company may require the
Participant to make any representation and warranty to the Company as may be required by any
applicable law or regulation.

	 
	6.	 	Termination of Employment. If the Participant ceases to serve as an Employee for any reason
other than death or permanent and total disability (within the meaning of Section 22(e)(3) of
the Code) or Termination for Cause and thereby terminates his or her Continuous Status as an
Employee, the Participant shall have the right to exercise this Option at any time within 90
days after the date of such termination to the extent that the Participant was entitled to
exercise this Option at the date of such termination. To the extent that the Participant was
not entitled to exercise this Option at the date of termination, or to the extent this Option
is not exercised within the time specified herein, this Option shall terminate.
Notwithstanding the foregoing, this Option shall not be exercisable as to any vested
installment after the expiration of its term as described in Section 8 hereof. If the
Participant ceases to serve as an Employee due to his or her Termination for Cause and thereby
terminates his or her Continuous Status as an Employee, the Participant shall immediately
forfeit the Option subject to this Agreement. This provision does not apply to an Award made
to a Participant in his or her capacity as a Director.

	 
	7.	 	Death or Disability. If the Participant ceases to serve as an Employee due to death or
permanent and total disability (within the meaning of Section 22(e)(3) of the Code), this
Option may be exercised at any time within 180 days after the date of death or termination of
employment or service due to disability, in the case of death, by the Participant’s estate or
by a person who acquired the right to exercise this Option by bequest or inheritance, or, in
the case of disability, by the Participant, but in any case only to the extent the Participant
was entitled to exercise this Option at the date of such termination. To the extent that the
Participant was not entitled to exercise this Option at the date of termination, or to the
extent this Option is not exercised within the time specified herein, this Option shall
terminate. Notwithstanding the foregoing, this Option shall not be exercisable as to any
vested installment after the expiration of its term as described in Section 8 hereof. This
provision does not apply to an Award made to a Participant in his or her capacity as a
Director.

	 
	8.	 	Term of Option. This Option shall expire and terminate for all purposes at 5:00 p.m.,
Pacific Time, on the expiration date set forth on the first page of the Stock Option
Agreement. To the extent that this Option is not exercised prior to such time and date, this
Option shall expire and terminate. This Option shall be subject to earlier termination as
provided in Sections 6 and 7 above. This Option may be exercised only in accordance with the
Plan and these Terms and Conditions. Notwithstanding any provision in the Plan or in these
Terms and Conditions with respect to the post-employment exercise of this Option, this Option
may not be exercised with respect to any Shares subject to any vested installment
after expiration of the term of this Option.

	 
	9.	 	Withholding upon Exercise of Option. The Company reserves the right to withhold, in
accordance with any applicable laws, from any consideration payable to Participant any taxes
required to be withheld by Federal,

 

	 	 	state or local law as a result of the grant or exercise of this Option or the sale or other
disposition of the Shares issued upon exercise of this Option. If the amount of any
consideration payable to the Participant is insufficient to pay such taxes or if no
consideration is payable to the Participant, upon the request of the Company, the
Participant shall pay to the Company in cash an amount sufficient for the Company to satisfy
any Federal, state or local tax withholding requirements it may incur as a result of the
grant or exercise of this Option or the sale or other disposition of the Shares issued upon
the exercise of this Option.

	 
	10.	 	Nontransferability of Option. This Option may not be sold, pledged, assigned, hypothecated,
gifted, transferred or disposed of in any manner either voluntarily or involuntarily by
operation of law, other than by will or by the laws of descent or distribution. Subject to
the foregoing and the terms of the Plan, the terms of this Option shall be binding upon the
executors, administrators, heirs, successors and assigns of the Participant.

	 
	11.	 	No Right of Employment. Neither the Plan nor this Option shall confer upon the Participant
any right to continue in the employment or service of the Company or limit in any respect the
right of the Company to discharge the Participant at any time, with or without cause and with
or without notice.

	 
	12.	 	Miscellaneous.

	 	(a)	 	Successors and Assigns. This Option Agreement shall bind and inure
only to the benefit of the parties to this Option Agreement (the “Parties”) and their
respective successors and assigns.

	 
	 	(b)	 	No Third-Party Beneficiaries. Nothing in this Option Agreement is
intended to confer any rights or remedies on any persons other than the Parties and
their respective successors or assigns. Nothing in this Option Agreement is intended
to relieve or discharge the obligation or liability of third persons to either Party.
No provision of this Option Agreement shall give any third person any right of
subrogation or action over or against either Party.

	 
	 	(c)	 	Amendments.

	 	(i)	 	The Committee reserves the right to amend the terms and
provisions of this Option without the Participant’s consent to comply with any
Federal or state securities law.

	 
	 	(ii)	 	Except as specifically provided in subsection 12(c)(i) above,
this Option Agreement and these Terms and Conditions shall not be changed or
modified, in whole or in part, except by supplemental agreement signed by the
Parties. Either Party may waive compliance by the other Party with any of the
covenants or conditions of this Option Agreement, but no waiver shall be
binding unless executed in writing by the Party making the waiver. No waiver
or any provision of this Option Agreement shall be deemed, or shall constitute,
a waiver of any other provision, whether or not similar, nor shall any waiver
constitute a continuing waiver. Any consent under this Option Agreement shall
be in writing and shall be effective only to the extent specifically set forth
in such writing.

	 	(d)	 	Governing Law. To the extent that Federal laws do not otherwise
control, the Plan and all determinations made or actions taken pursuant hereto shall be
governed by the laws of the State of California, without regard to the conflict of laws
rules thereof.

	 
	 	(e)	 	Severability. If any provision of this Option Agreement or the
application of such provision to any person or circumstances is held invalid or
unenforceable, the remainder of this Option Agreement, or the application of such
provision to persons or circumstances other than those as to which it is held invalid
or unenforceable, shall not be affected thereby.

* * * *

 

 

Amended and Restated

Ixia 2008 Equity Incentive Plan

Restricted Stock Award Agreement

Ixia (“Company”) hereby grants to you a Restricted Stock Award under the Amended and Restated Ixia
2008 Equity Incentive Plan (the “Plan”), as set forth below. Capitalized terms defined in
the Plan but not in this Agreement shall have the meanings given to them herein.

	 	 	 
	Name:
	 	 
	 
	 	 
	Date of Grant:
	 	 
	 
	 	 
	Number of Shares of
Restricted Stock:
	 	 
	 
	 	 
	Nature of
	 	 
	Restricted Stock:

	 	Each Share of Restricted Stock represents the right to
receive one share (“Share”) of Company Common Stock,
subject to the risk of forfeiture as described herein
and in the Plan.

	 
	 	 
	Vesting Schedule:

	 	[e.g., The Shares of Restricted Stock
will vest in [     ] equal [annual/quarterly] installments, with the
first installment vesting on [                    ] and the
remaining installments vesting on [                    ] of
each of the [          ] calendar quarters thereafter, as
long as you remain an Employee of the Company through
each such vesting date.][e.g., The Shares of
Restricted Stock will vest on the last day of the
Performance Period, as long as you remain an Employee
of the Company through such date and provided that the
following performance goals are achieved at the end of
the Performance Period:                      (“Performance Goals”).]

	 
	 	 
	Forfeiture:

	 	[e.g., If you cease to serve as an Employee for any
reason prior to the time restrictions on the Shares of
Restricted Stock lapse, you will forfeit any Shares of
Restricted Stock which are still subject to the
restrictions at the time of your termination of
employment.][e.g., If you cease to serve as an
Employee for any reason prior to the date on which the
Performance Period ends, or if the Performance Goals
are not achieved, any Shares of Restricted Stock which
are still subject to the restrictions shall not vest
and shall automatically be cancelled and forfeited for
no value.]

	 
	 	 
	Taxes:

	 	Payment of the applicable taxes in connection with the
vesting of Restricted Stock shall be a condition to
the delivery of Shares upon any vesting of the
Restricted Stock (see Restricted Stock Terms and
Conditions attached hereto).

	 
	 	 
	This Restricted Stock Award Agreement consists of this page and the Restricted Stock Terms and
Conditions attached hereto. By signing below, you accept the grant of this Restricted Stock Award
and agree that this Restricted Stock Award is subject in all respects to the terms and conditions
of the Plan located on the Company’s internal website at                     . Copies of the Plan and a
Prospectus containing information concerning the Plan are available upon request to                     
at                      or                     @ixia.com.

	 
	 	 
	You further acknowledge and agree that (i) you have carefully reviewed this Restricted Stock Award
Agreement (including the Restricted Stock Terms and Conditions attached hereto) and the Plan and
(ii) this Restricted Stock Award Agreement and the Plan set forth the entire understanding between
you and the Company regarding this Restricted Stock Award and supersede all prior or
contemporaneous oral and written agreements with respect thereto.

	 
	 	 
	IXIA

 

 

	 	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Print Name:	 	 	 	 	Date	 	 
	 
	 	 	 	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Participant
	 	 	 	Date	 	 

 

 

AMENDED AND RESTATED IXIA 2008 EQUITY INCENTIVE PLAN

Restricted Stock Award Agreement – Terms and Conditions

The following Terms and Conditions apply to the Restricted Stock granted by Ixia (“Company”)
to the Participant whose name appears on the Restricted Stock Award Agreement to which these Terms
and Conditions are attached (the “Restricted Stock”).

1. Award Subject to Plan. This Award is made under and is expressly subject to all the terms and
provisions of the Amended and Restated Ixia 2008 Equity Incentive Plan (the “Plan”) adopted by the
Company and incorporated herein by reference. The terms defined in the Plan shall have the same
meanings herein

2. Vesting of Restricted Stock.

	 	(a)	 	[e.g., Upon each vesting date for the Restricted Stock Award (each, a “Vesting
Date”), one share of Common Stock shall be deliverable for each Restricted Stock that
vests on such date, subject to the terms and provisions of the Plan and this Restricted
Stock Award Agreement.][e.g., Following the end of the Performance Period, provided you
remain employed by the Company during such period and the Performance Goals are
achieved at the end of the Performance Period, one share of Common Stock shall be
deliverable for each Restricted Stock, subject to the terms and provisions of the Plan
and this Restricted Stock Award Agreement.] Following vesting, the Company will
deliver such Shares to the Participant as soon as administratively feasible and
following satisfaction of any required withholding tax obligations as provided in
Section 4 below. Notwithstanding anything to the contrary set forth herein, delivery
of Shares pursuant to a Restricted Stock Award shall be made no later than 2 1/2 months
after the close of Company’s first taxable year in which such Shares are no longer
subject to a substantial risk of forfeiture (within the meaning of Section 409A of the
Code).

	 
	 	(b)	 	To the extent the Restricted Stock vests and Shares are delivered to the
Participant, such Shares will be free of the terms and conditions of this Restricted
Stock Award Agreement.

	 
	 	(c)	 	All rights of a shareholder shall exist with respect to the Restricted Stock as
a result of the grant of the Restricted Stock. Such rights shall exist beginning on
the date of grant of the Restricted Stock Award and subject to execution of this
Restricted Stock Award Agreement; however, any Shares or any other property (other than
cash) distributed as a dividend or otherwise with respect to any such Shares as to
which the restrictions have not yet lapsed shall be subject to the same restrictions as
the Shares subject to the Restricted Stock Award.

3. Delivery of Shares. The Shares of Restricted Stock described herein shall be granted in the
form of Shares registered in the name of the Participant but held by the Company until the
restrictions on the award lapse, subject to forfeiture as provided herein.

4. Taxes. The Participant is responsible for any federal, state, local or other income, employment
or other applicable taxes required to be withheld under Federal, state, local or other law in
connection with: (i) the vesting of the Restricted Stock Award and the issuance and delivery of
Shares to the Participant, or (iii) any other event occurring pursuant to this Restricted Stock
Award Agreement or the Plan (collectively, “Taxes”). The Participant acknowledges that in
connection with the issuance of Shares upon the vesting of Restricted Stock, the Company is
required to withhold from the Participant an amount that is sufficient to satisfy the Company’s Tax
withholding obligations. Notwithstanding any contrary provision of this Restricted Stock Award
Agreement or the Plan, no Shares will be issued to the Participant (or his or her estate, if
applicable) upon vesting of Restricted Stock unless and until satisfactory arrangements (as
determined by the Committee) have been made by the Participant with respect to the withholding and
payment of Taxes which the Company determines must be withheld with respect to such Shares.
Notwithstanding any contrary provision of this Restricted Stock Award Agreement or the Plan, no
Shares will be issued to the participant upon vesting of any Restricted Stock following the
fifteenth day of the third month of the calendar year following the calendar year in which such
Restricted Stock vests. The Committee, in its sole discretion and pursuant to such procedures as
it may specify from time to time, may (but is not required to) permit the Participant to satisfy
such Tax withholding obligations in any of the following ways:

 

 

	 	(a)	 	Payment in Cash. The Participant may elect to pay to the Company an amount
sufficient to cover such Taxes by delivering to the Company a check or by making a cash
deposit in the Participant’s brokerage account with E*Trade Securities LLC (“E*Trade”)
or such other brokerage firm as may be designated by the Company in connection with any
Company plan or arrangement providing for investment in Common Stock of the Company.

	 
	 	(b)	 	Cashless Exercise. Through a special sale and remittance procedure commonly
referred to as a “cashless exercise” or “sell to cover” transaction pursuant to which
the Participant (or any other person(s) entitled to receive such Shares upon vesting)
shall concurrently provide irrevocable written instructions:

	 	(i)	 	to such third party service provider as may be designated by
Company, including without limitation E*Trade (through your on-line account) or
such other brokerage firm as may be designated by the Company in connection with
any Company plan or arrangement providing for investment in Common Stock of the
Company to effect the immediate sale of a sufficient number of the Shares
delivered upon the vesting of the Shares to enable such brokerage firm to remit,
out of the sales proceeds available upon the settlement date, sufficient funds
to the Company to cover the aggregate exercise price payable for the purchased
Shares plus all applicable federal, state and local income and employment taxes
required to be withheld by the Company by reason of such exercise and/or sale;
and

	 
	 	(ii)	 	to the Company to deliver any certificate(s) or other evidence of
ownership for such sold Shares directly to such third party (e.g., E*Trade or
other designated third party) in order to complete the sales transaction.

	 	(c)	 	Payment by Withholding of Shares. In the Company’s sole discretion and in lieu
of the Participant’s election under Section 4(b), the Company may elect to retain that
number of whole Shares which would otherwise be deliverable in connection with the
Restricted Stock Award upon vesting and which have a Fair Market Value sufficient to
satisfy the amount of the Taxes required to be withheld. “Fair Market Value” for this
purpose shall be as determined in the Plan as of the applicable date.

	 
	 	(c)	 	Company Rights. Any elections permitted to be made pursuant to this Section 4
shall be made in writing or via electronic transmission on such form as shall be
prescribed by the Company for such purpose. The Company also reserves the right to
withhold Taxes, in accordance with any applicable law, from any compensation or other
amounts payable to the Participant and/or from the Shares otherwise deliverable to the
Participant upon the vesting of the Restricted Stock.

5. Termination of Employment. [e.g., If the Participant ceases to serve as an Employee for any
reason prior to the time restrictions on the Shares of Restricted Stock awarded pursuant to this
Restricted Stock Award Agreement lapse and thereby terminates his or her Continuous Status as an
Employee, the Participant shall forfeit any Shares of Restricted Stock which are still subject to
the restrictions at the time of termination of such employment.][e.g., If the Participant ceases to
serve as an Employee for any reason prior to the end of the Performance Period and thereby
terminates his or her Continuous Status as an Employee, the Participant shall forfeit any Shares of
Restricted Stock which are still subject to the restrictions at the time of termination of such
employment.]

6. Nontransferability. The Shares awarded pursuant to this Restricted Stock Award are
nontransferable by the Participant until vested as set forth on the first page of this Restricted
Stock Award Agreement. Prior to the time such Shares become transferable, the Shares of Restricted
Stock shall bear a legend indicating their nontransferability.

7. No Right of Employment. Neither the Plan nor this Restricted Stock Award shall confer upon the
Participant any right to continue in the employment or service of the Company or limit in any
respect the right of the Company to discharge the Participant at any time, with or without cause
and with or without notice.

8. Amendments.

	 	(a)	 	The Committee reserves the right to amend the terms and provisions of this
Restricted Stock Award without the Participant’s consent to comply with any Federal or
state securities law.

 

 

	 	(b)	 	Except as specifically provided in subsection (i) above, this Restricted Stock
Award Agreement shall not be changed or modified, in whole or in part, except by
supplemental agreement signed by the Parties. Either Party may waive compliance by the
other Party with any of the covenants or conditions of this Restricted Stock Award
Agreement, but no waiver shall be binding unless executed in writing by the Party
making the waiver. No waiver or any provision of this Restricted Stock Award Agreement
shall be deemed, or shall constitute, a waiver of any other provision, whether or not
similar, nor shall any waiver constitute a continuing waiver. Any consent under this
Restricted Stock Award Agreement shall be in writing and shall be effective only to the
extent specifically set forth in such writing.

9. Miscellaneous.

	 	(a)	 	Successors and Assigns. This Restricted Stock Award Agreement shall bind and
inure only to the benefit of the parties to this Restricted Stock Award Agreement (the
“Parties”) and their respective permitted successors and assigns.

	 
	 	(b)	 	No Third-Party Beneficiaries. Nothing in this Restricted Stock Award Agreement
is intended to confer any rights or remedies on any persons other than the Parties and
their respective permitted successors or assigns. Nothing in this Restricted Stock
Award Agreement is intended to relieve or discharge the obligation or liability of
third persons to any Party. No provision of this Restricted Stock Award Agreement
shall give any third person any right of subrogation or action over or against any
Party.

	 
	 	(c)	 	Governing Law. To the extent that Federal laws do not otherwise control, the
Plan and all determinations made or actions taken pursuant hereto shall be governed by
the laws of the state of California, without regard to the conflict of laws rules
thereof.

10. Severability. If any provision of this Restricted Stock Award Agreement or the application of
such provision to any person or circumstances is held invalid or unenforceable, the remainder of
this Restricted Stock Award Agreement, or the application of such provision to persons or
circumstances other than those as to which it is held invalid or unenforceable, shall not be
affected thereby.

* * * *

 

 

Amended and Restated

Ixia 2008 Equity Incentive Plan

Restricted Stock Unit Award Agreement

Ixia (“Company”) hereby grants to you a Restricted Stock Unit Award under the Amended and Restated
Ixia 2008 Equity Incentive Plan (the “Plan”), as set forth below. Capitalized terms
defined in the Plan but not in this Agreement shall have the meanings given to them herein.

	 	 	 
	Name:
	 	 
	 
	 	 
	Date of Grant:
	 	 
	 
	 	 
	Number of

Restricted Stock Units:
	 	 
	 
	 	 
	Nature of
	 	 
	Restricted Stock Units:

	 	Each Restricted Stock Unit represents the right to
receive one share (“Share”) of Company Common
Stock to be issued and delivered at the end of the
applicable [vesting period/Performance Period],
subject to the risk of cancellation as described
herein and in the Plan .

	 
	 	 
	Vesting Schedule:

	 	[e.g., The Restricted Stock Units will vest in
[     ] equal [annual/quarterly] installments, with
the first installment vesting on [                    ] and
the remaining installments vesting on
[                    ] of each of the [     ] calendar
quarters thereafter, as long as you remain an
Employee of the Company through each such vesting
date.] [e.g., The Restricted Stock Units will vest
on the last day of the Performance Period, as long
as you remain an Employee of the Company through
such date and provided that the following
performance goals are achieved at the end of the
Performance Period:                      (“Performance
Goals”).]

	 
	 	 
	Forfeiture:

	 	[e.g., If you cease to serve as an Employee for
any reason, any Restricted Stock Units which are
not vested as of the date of such termination
shall not vest and shall automatically be
cancelled and forfeited for no value and without
any issuance of Shares.] [e.g., If you cease to
serve as an Employee for any reason prior to the
date on which the Performance Period ends, or if
the Performance Goals are not achieved, any
Restricted Stock Units shall not vest and shall
automatically be cancelled and forfeited for no
value and without any issuance of Shares.]

	 
	 	 
	Taxes:

	 	Payment of the applicable taxes in connection with
the vesting of Restricted Stock Units shall be a
condition to the issuance and delivery of Shares
upon any vesting of the Restricted Stock Units
(see Restricted Stock Unit Terms and Conditions
attached hereto).

	 
	 	 
	This Restricted Stock Unit Award Agreement consists of this page and the Restricted Stock Unit
Terms and Conditions attached hereto. By signing below, you accept the grant of this Restricted
Stock Unit Award and agree that this Restricted Stock Unit Award is subject in all respects to the
terms and conditions of the Plan located on the Company’s internal website at                     .
Copies of the Plan and a Prospectus containing information concerning the Plan are available upon
request to                      at                      or                     @ixia.com.

 

 

You further acknowledge and agree that (i) you have carefully reviewed this Restricted Stock Unit
Award Agreement (including the Restricted Stock Unit Terms and Conditions attached hereto) and the
Plan and (ii) this Restricted Stock Unit Award Agreement and the Plan set forth the entire
understanding between you and the Company regarding this Restricted Stock Unit Award and supersede
all prior or contemporaneous oral and written agreements with respect thereto.

IXIA

	 	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Print Name:	 	 	 	 	Date	 	 
	 
	 	 	 	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Participant
	 	 	 	Date	 	 

 

 

AMENDED AND RESTATED IXIA 2008 EQUITY INCENTIVE PLAN

Restricted Stock Unit Award Agreement – Restricted Stock Unit Terms and Conditions

The following Restricted Stock Unit Terms and Conditions apply to the Restricted Stock Unit Award
granted by Ixia (“Company”) to the Participant whose name appears on the Restricted Stock Unit
Award Agreement cover page to which these Restricted Stock Unit Terms and Conditions are attached.

	1.	 	Amended and Restated Ixia 2008 Equity Incentive Plan. This Restricted Stock Unit Award is in
all respects subject to the terms, definitions and provisions of the Amended and Restated Ixia
2008 Equity Incentive Plan (the “Plan”) adopted by Ixia and incorporated herein by
reference. Capitalized terms defined in the Plan but not defined in this Restricted Stock
Unit Award Agreement shall have the meanings given to them in the Plan.

	 
	2.	 	Vesting of Restricted Stock Units Awards.

	 	(a)	 	[e.g., Upon each vesting date for the Restricted Stock Unit Award (each, a
“Vesting Date”), one share of Company Common Stock shall be issuable for each
Restricted Stock Unit that vests on such date, subject to the terms and provision of
the Plan and this Restricted Stock Unit Award Agreement.] [e.g., Following the end of
the Performance Period, provided you remain employed by the Company during such period
and the Performance Goals are achieved at the end of the Performance Period, one share
of Company Common Stock shall be issuable for each Restricted Stock Unit, subject to
the terms and provisions of the Plan and this Restricted Stock Unit Award Agreement.]
Following vesting, the Company will issue and transfer such Shares to the Participant
as soon as administratively feasible and following satisfaction of any required
withholding tax obligations as provided in Section 4 below. Notwithstanding anything
to the contrary set forth herein, delivery of Shares pursuant to a Restricted Stock
Unit Award shall be made no later than 2 1/2 months after the close of the Company’s
first taxable year in which such Shares are no longer subject to a substantial risk of
forfeiture (within the meaning of Section 409A of the Code).

	 
	 	(b)	 	To the extent the Restricted Stock Units vest and Shares are issued and
delivered to the Participant, such Shares will be free of the terms and conditions of
this Restricted Stock Unit Award Agreement.

	 
	 	(c)	 	No rights of a shareholder shall exist with respect to the Restricted Stock
Units as a result of the mere grant of the Restricted Stock Units. Such rights shall
exist only after issuance of the Shares following the applicable Vesting Date.

	3.	 	Delivery of Shares upon Vesting of Restricted Stock Units. Restricted Stock Units (if not
previously forfeited) will automatically be settled [e.g., on or about the Vesting Date or
Vesting Dates set forth on the cover page of this Restricted Stock Unit Award Agreement][e.g.,
following the end of the Performance Period set forth on the cover page of this Restricted
Unit Award Agreement, provided that the Performance Goals are achieved at the end of the
Performance Period and the Participant remains employed with the Company through such date].
The Company may make delivery of Shares upon vesting of Restricted Stock Units either by (i)
delivering one or more stock certificates representing such Shares to the Participant,
registered in the name of the Participant, or (ii) electronically depositing such Shares into
an online securities account maintained for the Participant as an Employee of the Company with
E*Trade Securities LLC (“E*Trade”) or such other brokerage firm as may be designated by the
Company in connection with any Company plan or arrangement providing for investment in Common
Stock of the Company. All certificates for Shares and all Shares shall be subject to such
stop transfer orders and other restrictions as the Company may deem advisable under the rules,
regulations and other requirements of the Securities and Exchange Commission, any stock
exchange or quotation system upon which the Shares are then listed or quoted, and any
applicable Federal or state securities law, and the Company may cause a legend or legends to
be put on any such certificates to make appropriate reference to such restrictions.

	 
	4.	 	Taxes. The Participant is responsible for any federal, state, local or other income,
employment or other applicable taxes required to be withheld under Federal, state, local or
other law in connection with: (i) the vesting of the Restricted Stock Unit Award and the
issuance and delivery of Shares to the Participant, or (iii) any other event occurring
pursuant to this Restricted Stock Unit Award Agreement or the Plan (collectively,
“Taxes”). The Participant acknowledges that in connection with the issuance of Shares
upon the vesting of Restricted Stock Units, the Company is required to withhold from the
Participant an amount that is sufficient to satisfy the Company’s Tax withholding obligations.
Notwithstanding any contrary provision of this

 

	 	 	Restricted Stock Unit Award Agreement or the Plan, no Shares will be issued to the
Participant (or his or her estate, if applicable) upon vesting of Restricted Stock Units
unless and until satisfactory arrangements (as determined by the Committee) have been made
by the Participant with respect to the withholding and payment of Taxes which the Company
determines must be withheld with respect to such Shares. Notwithstanding any contrary
provision of this Restricted Stock Unit Award Agreement or the Plan, no Shares will be
issued to the participant upon vesting of any Restricted Stock Unit following the fifteenth
day of the third month of the calendar year following the calendar year in which such
Restricted Stock Unit vests. The Committee, in its sole discretion and pursuant to such
procedures as it may specify from time to time, may (but is not required to) permit the
Participant to satisfy such Tax withholding obligations in any of the following ways:

	 	(a)	 	Payment in Cash. The Participant may elect to pay to the Company an amount
sufficient to cover such Taxes by delivering to the Company a check or by making a cash
deposit in the Participant’s brokerage account with E*Trade Securities LLC (“E*Trade”)
or such other brokerage firm as may be designated by the Company in connection with any
Company plan or arrangement providing for investment in Common Stock of the Company.

	 
	 	(b)	 	Cashless Exercise. Through a special sale and remittance procedure commonly
referred to as a “cashless exercise” or “sell to cover” transaction pursuant to which
the Participant (or any other person(s) entitled to receive the Shares upon vesting)
shall concurrently provide irrevocable written instructions:

	 	(i)	 	to such third party service provider as may be designated by
the Company, including without limitation E*Trade (through the Participant’s
on-line account) or such other brokerage firm as may be designated by the
Company in connection with any Company plan or arrangement providing for
investment in Common Stock of the Company to effect the immediate sale of a
sufficient number of the Shares acquired upon the vesting of the Shares to
enable such brokerage firm to remit, out of the sales proceeds available upon
the settlement date, sufficient funds to the Company to cover all applicable
federal, state and local income and employment taxes required to be withheld by
the Company by reason of such exercise and/or sale; and

	 
	 	(ii)	 	to the Company to deliver any certificate(s) or other evidence
of ownership for such sold Shares directly to such third party (e.g., E*Trade
or other designated third party) in order to complete the sales transaction.

	 	(c)	 	Payment by Withholding of Shares. In the Company’s sole discretion and in lieu
of the Participant’s election under Section 4(b), the Company may elect to retain that
number of whole Shares which would otherwise be deliverable in connection with the
Restricted Stock Unit Award upon vesting and which have a Fair Market Value sufficient
to satisfy the amount of the Taxes required to be withheld. “Fair Market Value” for
this purpose shall be as determined in the Plan as of the applicable Vesting Date.

	 
	 	(d)	 	Company Rights. Any elections permitted to be made pursuant to this Section 4
shall be made in writing or via electronic transmission on such form as shall be
prescribed by the Company for such purpose. The Company also reserves the right to
withhold Taxes, in accordance with any applicable law, from any compensation or other
amounts payable to the Participant and/or (ii) the Shares otherwise issuable to the
Participant.

	5.	 	Termination of Employment. [e.g., If the Participant ceases to serve as an Employee for any
reason and thereby terminates his or her Continuous Status as an Employee, the Participant’s
Restricted Stock Units which are not vested as of the date of such termination shall not vest
and shall automatically be cancelled and forfeited for no value and without any issuance of
Shares.][e.g., If the Participant ceases to serve as an Employee for any reason and thereby
terminates his or her Continuous Status as an Employee prior to the end of the Performance
Period, the Participant’s Restricted Stock Units shall not vest and shall automatically be
cancelled and forfeited for no value and without any issuance of Shares.]

	 
	6.	 	Nontransferability of Restricted Stock Units. This Restricted Stock Unit Award may not be
sold, pledged, assigned, hypothecated, gifted, transferred or disposed of in any manner either
voluntarily or involuntarily by operation of law, other than transfers between spouses
incident to a divorce. Subject to the foregoing and the terms of the Plan, the terms of this
Restricted Stock Unit Award shall be binding upon the executors,

 

	 	 	administrators, heirs, successors and assigns of the Participant. The Shares issued upon
vesting of the Restricted Stock Unit Award will not be subject to restrictions on transfer
under this Section 6.

	 
	7.	 	No Dividend Equivalents. The Participant shall not be entitled to receive, currently or on a
deferred basis, any payments (i.e., “dividend equivalents”) equivalent to cash, stock or other
property paid by the Company as dividends on the Company’s Common Stock prior to the vesting
of the Restricted Stock Units.

	 
	8.	 	No Right of Employment. Neither the Plan nor this Restricted Stock Unit Award shall confer
upon the Participant any right to continue in the employment or service of the Company or
limit in any respect the right of the Company to discharge the Participant at any time, with
or without cause and with or without notice.

	 
	9.	 	Restrictions on Issuance. Shares shall not be issued with respect to this Restricted Stock
Unit Award if the issuance of Shares would constitute a violation of any applicable Federal or
state securities law or other applicable law or regulation. As a condition to the issuance of
Shares pursuant to this Restricted Stock Unit Award, the Company may require the Participant
to make any representation and warranty to the Company as may be required by any applicable
law or regulation.

	 
	10	 	Miscellaneous.

	 	(a)	 	Successors and Assigns. This Restricted Stock Unit Award Agreement shall bind
and inure only to the benefit of the parties to this Restricted Stock Unit Award
Agreement (the “Parties”) and their respective permitted successors and
assigns.

	 
	 	(b)	 	No Third-Party Beneficiaries. Nothing in this Restricted Stock Unit Award
Agreement is intended to confer any rights or remedies on any persons other than the
Parties and their respective permitted successors or assigns. Nothing in this
Restricted Stock Unit Award Agreement is intended to relieve or discharge the
obligation or liability of third persons to any Party. No provision of this Restricted
Stock Unit Award Agreement shall give any third person any right of subrogation or
action over or against any Party.

	 
	 	(c)	 	Amendments.

	 	(i)	 	The Committee reserves the right to amend the terms and
provisions of this Restricted Stock Unit Award without the Participant’s
consent to comply with any Federal or state securities law.

	 
	 	(ii)	 	Except as specifically provided in subsection (i) above, this
Restricted Stock Unit Award Agreement shall not be changed or modified, in
whole or in part, except by supplemental agreement signed by the Parties.
Either Party may waive compliance by the other Party with any of the covenants
or conditions of this Restricted Stock Unit Award Agreement, but no waiver
shall be binding unless executed in writing by the Party making the waiver. No
waiver or any provision of this Restricted Stock Unit Award Agreement shall be
deemed, or shall constitute, a waiver of any other provision, whether or not
similar, nor shall any waiver constitute a continuing waiver. Any consent
under this Restricted Stock Unit Award Agreement shall be in writing and shall
be effective only to the extent specifically set forth in such writing.

	 	(d)	 	Governing Law. To the extent that Federal laws do not otherwise control, the
Plan and all determinations made or actions taken pursuant hereto shall be governed by
the laws of the state of California, without regard to the conflict of laws rules
thereof.

	 
	 	(e)	 	Severability. If any provision of this Restricted Stock Unit Award Agreement
or the application of such provision to any person or circumstances is held invalid or
unenforceable, the remainder of this Restricted Stock Unit Award Agreement, or the
application of such provision to persons or circumstances other than those as to which
it is held invalid or unenforceable, shall not be affected thereby.

* * * *

 

 

Amended and Restated

Ixia 2008 Equity
Incentive Plan

SAR Award Agreement

Ixia (“Company”) hereby grants to you a Share Appreciation Right Award under the Amended and Restated Ixia 2008 Equity
Incentive Plan (the “Plan”), covering the number of share appreciation rights (“SARs”) set forth below.

	 	 	 
	Name:
	 	 
	 
	 	 
	Employee ID #:
	 	 
	 
	 	 
	Date of Grant:
	 	 
	 
	 	 
	Type of SARs:

	 	[e.g., Freestanding or Tandem]
	 
	 	 
	Number of SARs:
	 	 
	 
	 	 
	SARs Payable in:

	 	[e.g., Shares of Company Common Stock and/or Cash]
	 
	 	 
	Grant Price:

	 	$                    
	 
	 	 
	Vesting Schedule:

	 	[e.g.,                      SARs on M/D/Y and as to the remaining                      SARs in 12 equal quarterly
installments, with the first such installment vesting on M/D/Y, and one additional installment vesting on the last day
of each calendar quarter thereafter, as long as you remain an employee of the Company or a subsidiary thereof.]

	 
	 	 
	Expiration Date:

	 	[e.g., The SARs will expire at 5:00 p.m., Pacific Time, on the [                    ]-year anniversary of the
date of grant; provided, however, that if you are not a Director, in the event of your termination of employment with
the Company or your disability or death, the provisions of Sections 7 and 8 of the SAR Terms and Conditions attached
hereto shall apply to your right to exercise the SARs.]

	 
	 	 
	This SAR Award Agreement (this “SAR Award Agreement”) consists of this page and the SAR Terms and Conditions attached
hereto. By signing below, you accept the grant of these SARs and agree that these SARs are subject in all respects to
the terms and conditions of the Plan. Copies of the Plan and Prospectus containing information concerning the Plan
are available upon request to                      at                      or                     @ixia.com.

You further acknowledge and agree that (i) you have carefully reviewed this SAR Award Agreement (including the SAR
Terms and Conditions attached hereto) and the Plan and (ii) this SAR Award Agreement and the Plan set forth the entire
understanding between you and the Company regarding these SARs and supersede all prior oral and written agreements
with respect thereto.

	 
	 	 
	IXIA

	 	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	Date	 	 
	Print Name:	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Participant
	 	 	 	Date	 	 

 

 

Amended and Restated Ixia 2008 Equity Incentive Plan

SAR Award Agreement – Terms and Conditions

The following Terms and Conditions apply to the SARs granted by Ixia (“Company”) to the Participant
whose name appears on the SAR Award Agreement to which these Terms and Conditions are attached (the
“SARs”).

	1.	 	Amended and Restated Ixia 2008 Equity Incentive Plan. The SARs are in all respects subject
to the terms, definitions and provisions of the Amended and Restated Ixia 2008 Equity
Incentive Plan (the “Plan”) adopted by Ixia and incorporated herein by reference. The terms
defined in the Plan shall have the same meanings herein.

	 
	2.	 	Payment of SAR Amount. The SARS shall be payable in shares of the Company’s Common Stock
and, upon exercise of the SARs, in whole or in part, the Participant shall be entitled to
receive from the Company such number of Shares as is determined by multiplying (x) the excess
of the Fair Market Value of a Share on the date of exercise over the Grant Price times (y) the
number of Shares with respect to which the SAR Award is exercised, and dividing such product
by (z) the Fair Market Value of a Share on the date of exercise. The resulting number
(rounded down to the nearest whole number) shall be the number of Shares to be issued to the
Participant upon the exercise of the SARs. The Participant shall not be entitled to receive
any fractional Share or cash for any fractional Share as a result of any such rounding down
upon exercise of the SARs.

	 
	3.	 	Exercise of SARs. The SARs shall be exercisable during their term only in accordance with
the terms and provisions of the Plan and these Terms and Conditions as follows:

	 	(a)	 	Vesting. The SARs shall vest and be exercisable cumulatively as set forth on
the first page of this SAR Award Agreement. Provided the Participant has maintained
his or her Continuous Status as an Employee since the grant of these SARs, the
Participant may exercise the exercisable (i.e., vested) portion of his or her SARs in
whole or in part at any time during his or her employment; provided,
however, that the SARs may not be exercised for a fraction of a Share. In the
event of the Participant’s termination of employment or service with the Company or the
Participant’s disability or death, the provisions of Sections 7 or 8 below shall apply
to the right of the Participant to exercise the SARs.

	 
	 	(b)	 	Manner of Exercise. The SARs shall be exercisable by following such procedures
as may from time to time be prescribed by the Company or by any third party service
provider designated by the Company, including without limitation, E*Trade Securities
LLC (“E*Trade”) in connection with the OptionsLink online securities account maintained
by the Participant with E*Trade as an Employee of the Company or such other brokerage
firm as may be designated by the Company in connection with any Company plan or
arrangement providing for investment in Common Stock of the Company.

	 
	 	(c)	 	No Shareholder Rights. No rights of a shareholder shall exist with respect to
the Shares under the SARs as a result of the mere grant of the SARs or the exercise of
the SARs. Such rights shall exist only after issuance of a stock certificate or
electronic transfer of the Shares to the Participant’s brokerage account in accordance
with the Plan.

	 
	 	(d)	 	Tandem SARs. Any of the SARs which are Tandem SARs may be exercised by the
Participant for all or part of the Shares subject to the related Option upon the
surrender of the right to exercise the equivalent portion of the related Option. A
Tandem SAR may be exercised only with respect to the Shares for which its related
Option is then exercisable.

	4.	 	Delivery of Shares upon Exercise of SARs. The Company may make delivery of Shares upon
exercise of the SARs either by (i) delivering one or more stock certificates representing such
Shares to the Participant, registered in the name of the Participant, or (ii) depositing such
Shares into an account maintained for the Participant and established in connection with any
Company plan or arrangement providing for investment in Common Stock of the Company, including
without limitation any on-line securities account maintained by the Participant with E*Trade
in connection with is or her employment or service with the Company. All

 

 

	 	 	certificates for Shares and all Shares shall be subject to such stop transfer orders and
other restrictions as the Company may deem advisable under the rules, regulations and other
requirements of the Securities and Exchange Commission, any stock exchange or quotation
system upon which the Shares are then listed or quoted, and any applicable Federal or state
securities law, and the Company may cause a legend or legends to be put on any such
certificates (or other appropriate restrictions and/or notations to be associated with any
accounts in which such Shares are held) to make appropriate reference to such restrictions.

	 
	5.	 	Taxes. The Participant is responsible for any taxes required to be withheld under Federal,
state or local law in connection with: (i) the exercise of the SARs and the issuance and
delivery of Shares to the Participant, or (ii) any other event occurring pursuant to this SAR
Award Agreement or the Plan (collectively, “Taxes”). Any election pursuant to this Section 5
shall be made in writing on such form or electronically in such manner shall be prescribed by
the Company for such purpose.

	 	(a)	 	Payment in Cash. The Participant may elect to pay to the Company an amount
sufficient to cover such Taxes by delivering to the Company a check or by such other
means as the Company may establish or permit.

	 
	 	(b)	 	Cashless Exercise. The Participant may elect to pay the Company his or her
obligations for the payment of such Taxes through a special sale and remittance
procedure commonly referred to as a “cashless exercise” or “sell to cover” transaction
pursuant to which the Participant (or any other person(s) entitled to exercise the
SARs) shall concurrently provide irrevocable written instructions:

	 	(i)	 	to such third party service provider as may be designated by
the Company, including without limitation E*Trade (through the Participant’s
on-line account) or such other brokerage firm as may be designated by the
Company in connection with any Company plan or arrangement providing for
investment in Common Stock of the Company to effect the immediate sale of a
sufficient number of the Shares acquired upon the exercise of the SARs to
enable such third party (e.g., E*Trade or other designated third party) to
remit, out of the sales proceeds available upon the settlement date, sufficient
funds to the Company to cover all applicable federal, state and local income
and employment taxes required to be withheld by the Company by reason of such
exercise and/or sale; and

	 
	 	(ii)	 	to the Company to deliver any certificate(s) or other evidence
of ownership for such sold Shares directly to such third party (e.g., E*Trade
or other designated third party) in order to complete the sales transaction.

	 	(c)	 	[If applicable][Payment by Withholding of Shares. Subject to approval by
[Company management]and compliance with any applicable legal conditions or
restrictions, the Participant may also elect to satisfy his or her obligations for the
payment of such Taxes by having the Company retain that number of whole Shares which
would otherwise be deliverable in connection with the exercise of the SARs and which
have a Fair Market Value sufficient to satisfy the amount of the Taxes required to be
withheld. “Fair Market Value” for this purpose shall be as determined in the Plan as
of the applicable exercise date.]

	 
	 	(d)	 	Company Rights. The Company also reserves the right, and the Participant
authorizes the Company, to withhold Taxes, in accordance with any applicable law, from
(i) any compensation or other amounts payable to the Participant and/or (ii) the Shares
otherwise issuable to the Participant upon exercise of the SARs.

	6.	 	Restrictions on Exercise. The SARs may not be exercised if the issuance of Shares upon
Participant’s exercise or the method of payment of consideration for such Shares would
constitute a violation of any applicable Federal or state securities law or other applicable
law or regulation. As a condition to the exercise of the SARs, the Company may require the
Participant to make any representation and warranty to the Company as may be required by any
applicable law or regulation.

 

 

	7.	 	Termination of Employment. If the Participant ceases to serve as an Employee for any reason
other than death or permanent and total disability (within the meaning of Section 22(e)(3) of
the Code) and thereby terminates his or her Continuous Status as an Employee, the Participant
shall have the right to exercise the SARs at any time within 90 days after the date of such
termination to the extent that the Participant was entitled to exercise the SARs at the date
of such termination. To the extent that the Participant was not entitled to exercise the SARs
at the date of termination, or to the extent the SARs are not exercised within the time
specified herein, the SARs shall terminate. Notwithstanding the foregoing, the SARs shall not
be exercisable after the expiration of the term set forth in Section 9 hereof. This provision
does not apply to an Award made to a Participant in his or her capacity as a Director.

	 
	8.	 	Death or Disability. If the Participant ceases to serve as an Employee due to death or
permanent and total disability (within the meaning of Section 22(e)(3) of the Code), the SARs
may be exercised at any time within 180 days after the date of death or termination of
employment due to disability, in the case of death, by the Participant’s estate or by a person
who acquired the right to exercise the SARs by bequest or inheritance, or, in the case of
disability, by the Participant, but in any case only to the extent the Participant was
entitled to exercise the SARs at the date of such termination. To the extent that the
Participant was not entitled to exercise the SARs at the date of termination, or to the extent
the SARs are not exercised within the time specified herein, the SARs shall terminate.
Notwithstanding the foregoing, the SARs shall not be exercisable after the expiration of the
term set forth in Section 9 hereof. This provision does not apply to an Award made to a
Participant in his or her capacity as a Director.

	 
	9.	 	Term of SARs. The SARs shall expire and terminate for all purposes on [                    ,
20     ], and may be exercised during such term only in accordance with the Plan and the
terms of this SAR Award Agreement. To the extent that the SARs are not exercised prior to
such time and date, the SARs shall expire and terminate. Such exercise period shall be
subject to earlier termination as provided in Sections 7 and 8 above. Notwithstanding any
provision in the Plan with respect to the post-employment exercise of the SARs, the SARs may
not be exercised after the expiration of the term of the SARs.

	 
	10.	 	Nontransferability of SARs. No SAR may be sold, transferred, pledged, assigned or otherwise
alienated or hypothecated, other than by will or by the laws of descent and distribution or
transfer between spouses incident to a divorce. Subject to the foregoing and the terms of the
Plan, the terms of this SAR Award Agreement shall be binding upon the executors,
administrators, heirs, successors and assigns of the Participant.

	 
	11.	 	No Right of Employment. Neither the Plan nor the SARs shall confer upon the Participant any
right to continue in the employment or service of the Company or limit in any respect the
right of the Company to discharge the Participant at any time, with or without cause and with
or without notice.

	 
	12.	 	Miscellaneous.

	 	(a)	 	Successors and Assigns. This SAR Award Agreement shall bind and inure only to
the benefit of the parties to the attached SAR Award Agreement (the “Parties”) and
their respective successors and assigns.

	 
	 	(b)	 	No Third-Party Beneficiaries. Nothing in this SAR Award Agreement is intended
to confer any rights or remedies on any persons other than the Parties and their
respective successors or assigns. Nothing in this SAR Award Agreement is intended to
relieve or discharge the obligation or liability of third persons to any Party. No
provision of this SAR Award Agreement shall give any third person any right of
subrogation or action over or against any Party.

	 
	 	(c)	 	Amendments.

	 	(i)	 	The Committee reserves the right to amend the terms and
provisions of the SARs without the Participant’s consent in order to comply
with any Federal or state securities law.

 

 

	 	(ii)	 	Except as specifically provided in subsection (i) above, this
SAR Award Agreement shall not be changed or modified, in whole or in part,
except by supplemental agreement signed by the Parties. Either Party may waive
compliance by the other Party with any of the covenants or conditions of this
SAR Award Agreement, but no waiver shall be binding unless executed in writing
by the Party making the waiver. No waiver or any provision of this SAR Award
Agreement shall be deemed, or shall constitute, a waiver of any other
provision, whether or not similar, nor shall any waiver constitute a continuing
waiver. Any consent under this SAR Award Agreement shall be in writing and
shall be effective only to the extent specifically set forth in such writing.

	 	(d)	 	Governing Law. To the extent that Federal laws do not otherwise control, the
Plan and all determinations made or actions taken pursuant hereto shall be governed by
the laws of the State of California, without regard to the conflict of laws rules
thereof.

	 
	 	(e)	 	Severability. If any provision of this SAR Award Agreement or the application
of such provision to any person or circumstances is held invalid or unenforceable, the
remainder of this SAR Award Agreement, or the application of such provision to persons
or circumstances other than those as to which it is held invalid or unenforceable,
shall not be affected thereby.

* * * *exv4w15

Exhibit 4.15

DEPOSIT AGREEMENT

among

U.S. BANCORP,

U.S. BANK NATIONAL ASSOCIATION

as Depositary,

and

THE HOLDERS FROM TIME TO TIME OF

THE DEPOSITARY RECEIPTS DESCRIBED HEREIN

Dated as of June ___, 2010

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I

	DEFINED TERMS

	 
	 	 	 	 
	Section 1.1. Definitions
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II

	FORM OF RECEIPTS, DEPOSIT OF SERIES A PREFERRED STOCK, EXECUTION AND 

	DELIVERY, TRANSFER, SURRENDER AND REDEMPTION OF RECEIPTS

	 
	 	 	 	 
	Section 2.1. Form and Transfer of Receipts
	 	 	2	 
	Section 2.2. Deposit of Series A Preferred Stock; Execution and Delivery of Receipts in Respect Thereof
	 	 	3	 
	Section 2.3. Registration of Transfer of Receipts
	 	 	4	 
	Section 2.4. Split-ups and Combinations of Receipts; Surrender of Receipts and Withdrawal of Series A Preferred Stock
	 	 	4	 
	Section 2.5. Limitations on Execution and Delivery, Transfer, Surrender and Exchange of Receipts

	 	 	5	 
	Section 2.6. Lost Receipts, etc
	 	 	6	 
	Section 2.7. Cancellation and Destruction of Surrendered Receipts
	 	 	6	 
	Section 2.8. Redemption of Series A Preferred Stock
	 	 	6	 
	 
	 	 	 	 
	ARTICLE III

	CERTAIN OBLIGATIONS OF

	HOLDERS OF RECEIPTS AND THE CORPORATION

	 
	 	 	 	 
	Section 3.1. Filing Proofs, Certificates and Other Information
	 	 	7	 
	Section 3.2. Payment of Taxes or Other Governmental Charges
	 	 	8	 
	Section 3.3. Warranty as to Series A Preferred Stock
	 	 	8	 
	Section 3.4. Warranty as to Receipts
	 	 	8	 
	 
	 	 	 	 
	ARTICLE IV

	THE DEPOSITED SECURITIES; NOTICES

	 
	 	 	 	 
	Section 4.1. Cash Distributions
	 	 	8	 
	Section 4.2. Distributions Other than Cash, Rights, Preferences or Privileges
	 	 	9	 
	Section 4.3. Subscription Rights, Preferences or Privileges
	 	 	9	 
	Section 4.4. Notice of Dividends, etc.; Fixing Record Date for Holders of Receipts
	 	 	10	 
	Section 4.5. Voting Rights
	 	 	11	 
	Section 4.6. Changes Affecting Deposited Securities and Reclassifications, Recapitalizations, etc
	 	 	11	 

i

 

	 	 	 	 	 
	 	 	Page	 
	Section 4.7. Delivery of Reports
	 	 	12	 
	Section 4.8. Lists of Receipt Holders
	 	 	12	 
	ARTICLE V

	THE DEPOSITARY, THE DEPOSITARY’S

	AGENTS, THE REGISTRAR AND THE CORPORATION

	 
	 	 	 	 
	Section 5.1. Maintenance of Offices, Agencies and Transfer Books by the Depositary; Registrar
	 	 	12	 
	Section 5.2. Prevention of or Delay in Performance by the Depositary, the Depositary’s Agents, the Registrar or the Corporation
	 	 	13	 
	Section 5.3. Obligations of the Depositary, the Depositary’s Agents, the Registrar and the Corporation
	 	 	13	 
	Section 5.4. Resignation and Removal of the Depositary; Appointment of Successor Depositary
	 	 	14	 
	Section 5.5. Corporate Notices and Reports
	 	 	15	 
	Section 5.6. Indemnification by the Corporation
	 	 	16	 
	Section 5.7. Fees, Charges and Expenses
	 	 	16	 
	 
	 	 	 	 
	ARTICLE VI

	AMENDMENT AND TERMINATION

	 
	 	 	 	 
	Section 6.1. Amendment
	 	 	16	 
	Section 6.2. Termination
	 	 	17	 
	 
	 	 	 	 
	ARTICLE VII

	MISCELLANEOUS

	 
	 	 	 	 
	Section 7.1. Counterparts
	 	 	17	 
	Section 7.2. Exclusive Benefit of Parties
	 	 	17	 
	Section 7.3. Invalidity of Provisions
	 	 	17	 
	Section 7.4. Notices
	 	 	18	 
	Section 7.5. Depositary’s Agents
	 	 	18	 
	Section 7.6. Appointment of Registrar, Dividend Disbursing Agent and Redemption Agent in Respect of the Series A Preferred Stock
	 	 	19	 
	Section 7.7. Appointment of Calculation Agent
	 	 	19	 
	Section 7.8. Holders of Receipts Are Parties
	 	 	19	 
	Section 7.9. Governing Law
	 	 	19	 
	Section 7.10. Inspection of Deposit Agreement
	 	 	19	 
	Section 7.11. Headings
	 	 	20	 
	Exhibit A Form of Receipt
	 	 	A-1	 
	Exhibit B Form of Officer’s Certificate
	 	 	B-1	 

 ii

 

 

          DEPOSIT AGREEMENT dated as of June ___, 2010, among (i) U.S. BANCORP, a Delaware
corporation, (ii) U.S. BANK NATIONAL ASSOCIATION, a national banking association formed under the
laws of the United States, and (iii) the Holders from time to time of the Receipts described
herein.

          WHEREAS, it is desired to provide, as hereinafter set forth in this Deposit Agreement, for the
deposit of shares of Series A Preferred Stock of the Corporation from time to time with the
Depositary for the purposes set forth in this Deposit Agreement and for the issuance hereunder of
Receipts evidencing Depositary Shares in respect of the Series A Preferred Stock so deposited; and

          WHEREAS, the Receipts are to be substantially in the form of Exhibit A annexed hereto, with
appropriate insertions, modifications and omissions, as hereinafter provided in this Deposit
Agreement;

          NOW, THEREFORE, in consideration of the premises, the parties hereto agree as follows:

ARTICLE I

DEFINED TERMS

          Section 1.1. Definitions.

          The following definitions shall for all purposes, unless otherwise indicated, apply to the
respective terms used in this Deposit Agreement:

          “Certificate” shall mean the relevant Certificate of Designations filed with the Secretary of
State of the State of Delaware, as amended, establishing the Series A Preferred Stock as a
series of preferred stock of the Corporation.

          “Corporation” shall mean U.S. Bancorp, a Delaware corporation, and its successors.

          “Deposit Agreement” shall mean this Deposit Agreement, as amended or supplemented from time to
time in accordance with the terms hereof.

          “Depositary” shall mean U.S. Bank National Association, a national banking association formed
under the laws of the United States, and any successor as Depositary hereunder.

          “Depositary Shares” shall mean the depositary shares, each representing one-one thousandth of
one share of the Series A Preferred Stock, evidenced by a Receipt.

          “Depositary’s Agent” shall mean an agent appointed by the Depositary pursuant to Section 7.5.

 

 

          “Depositary’s Office” shall mean the principal office of the Depositary in New York, New York,
at which at any particular time its depositary receipt business shall be administered.

          “Officer’s Certificate” means a certificate in substantially the form set forth as Exhibit B
hereto, which is signed by an officer of the Corporation and which shall include the terms and
conditions of the Series A Preferred Stock to be issued by the Corporation and deposited with the
Depositary from time to time in accordance with the terms hereof.

          “Receipt” shall mean one of the depositary receipts issued hereunder, substantially in the
form set forth as Exhibit A hereto, whether in definitive or temporary form, and evidencing the
number of Depositary Shares with respect to the Series A Preferred Stock held of record by the
Record Holder of such Depositary Shares.

          “Record Holder” or “Holder” as applied to a Receipt shall mean the person in whose name such
Receipt is registered on the books of the Depositary maintained for such purpose.

          “Registrar” shall mean the Depositary or such other successor bank or trust company which
shall be appointed by the Corporation to register ownership and transfers of Receipts as herein
provided and if a successor Registrar shall be so appointed, references herein to “the books” of or
maintained by the Depository shall be deemed, as applicable, to refer as well to the register
maintained by such Registrar for such purpose.

          “Securities Act” shall mean the Securities Act of 1933, as amended.

          “Series A Preferred Stock” shall mean the shares of the Corporation’s Series A Non-Cumulative
Perpetual Preferred Stock, $1.00 par value, with a liquidation preference of $100,000 per share,
designated in the Certificate and described in the Officer’s Certificate delivered pursuant to
Section 2.2 hereof.

ARTICLE II

FORM OF RECEIPTS, DEPOSIT OF SERIES A PREFERRED STOCK, EXECUTION AND

DELIVERY, TRANSFER, SURRENDER AND REDEMPTION OF RECEIPTS

          Section 2.1. Form and Transfer of Receipts.

          The definitive Receipts shall be substantially in the form set forth in Exhibit A annexed to
this Agreement, with appropriate insertions, modifications and omissions, as hereinafter provided
and shall be engraved or otherwise prepared so as to comply with applicable rules of the New York
Stock Exchange, Inc. Pending the preparation of definitive Receipts, the Depositary, upon the
written order of the Corporation, delivered in compliance with Section 2.2, shall execute and
deliver temporary Receipts which may be printed, lithographed, typewritten, mimeographed or
otherwise substantially of the tenor of the definitive Receipts in lieu of which they are issued
and with such appropriate insertions, omissions, substitutions and other variations as the persons
executing such Receipts may determine, as evidenced by their execution of such Receipts. If
temporary Receipts are issued, the Corporation and the Depositary will cause definitive Receipts to
be prepared without unreasonable delay. After the preparation of definitive

2

 

Receipts, the temporary Receipts shall be exchangeable for definitive Receipts upon surrender
of the temporary Receipts at an office described in the penultimate paragraph of Section 2.2,
without charge to the Holder. Upon surrender for cancellation of any one or more temporary
Receipts, the Depositary shall execute and deliver in exchange therefor definitive Receipts
representing the same number of Depositary Shares as represented by the surrendered temporary
Receipt or Receipts. Such exchange shall be made at the Corporation’s expense and without any
charge therefor. Until so exchanged, the temporary Receipts shall in all respects be entitled to
the same benefits under this Agreement as definitive Receipts.

          Receipts shall be executed by the Depositary by the manual signature of a duly authorized
officer of the Depositary; provided, that such signature may be a facsimile if a Registrar for the
Receipts (other than the Depositary) shall have been appointed and such Receipts are countersigned
by manual signature by a duly authorized officer of the Registrar. No Receipt shall be entitled to
any benefits under this Deposit Agreement or be valid or obligatory for any purpose unless it shall
have been executed manually by a duly authorized officer of the Depositary or, if a Registrar for
the Receipts (other than the Depositary) shall have been appointed, by manual or facsimile
signature of a duly authorized officer of the Depositary and countersigned by manual signature by a
duly authorized officer of such Registrar. The Depositary shall record on its books each Receipt so
signed and delivered as hereinafter provided.

          Receipts shall be in denominations of any number of whole Depositary Shares.

          Receipts may be endorsed with or have incorporated in the text thereof such legends or
recitals or changes not inconsistent with the provisions of this Deposit Agreement all as may be
required by the Depositary and approved by the Corporation or required to comply with any
applicable law or any regulation thereunder or with the rules and regulations of any securities
exchange upon which the Series A Preferred Stock, the Depositary Shares or the Receipts may be
listed or to conform with any usage with respect thereto, or to indicate any special limitations or
restrictions to which any particular Receipts are subject.

          Title to Depositary Shares evidenced by a Receipt which is properly endorsed or accompanied by
a properly executed instrument of transfer, shall be transferable by delivery with the same effect
as in the case of a negotiable instrument; provided, however, that until transfer of any particular
Receipt shall be registered on the books of the Depositary as provided in Section 2.3, the
Depositary may, notwithstanding any notice to the contrary, treat the Record Holder thereof at such
time as the absolute owner thereof for the purpose of determining the person entitled to
distributions of dividends or other distributions or to any notice provided for in this Deposit
Agreement and for all other purposes.

          Section 2.2. Deposit of Series A Preferred Stock; Execution and Delivery of Receipts in
Respect Thereof.

          Subject to the terms and conditions of this Deposit Agreement, the Corporation may from time
to time deposit shares of Series A Preferred Stock under this Deposit Agreement by delivery to the
Depositary of a certificate or certificates for such shares of Series A Preferred Stock to be
deposited, properly endorsed or accompanied, if required by the Depositary, by a duly executed
instrument of transfer or endorsement, in form satisfactory to the Depositary, together

3

 

with all such certifications as may be required by the Depositary in accordance with the
provisions of this Deposit Agreement and an executed Officer’s Certificate attaching the
Certificate and all other information required to be set forth therein, and together with a written
order of the Corporation directing the Depositary to execute and deliver to, or upon the written
order of, the person or persons stated in such order a Receipt or Receipts evidencing in the
aggregate the number of Depositary Shares representing such deposited Series A Preferred Stock.
Each Officer’s Certificate delivered to the Depositary in accordance with the terms of this Deposit
Agreement shall be deemed to be incorporated into this Deposit Agreement and shall be binding on
the Corporation, the Depositary and the Holders of Receipts to which such Officer’s Certificate
relates.

          The Series A Preferred Stock that is deposited shall be held by the Depositary at the
Depositary’s Office or at such other place or places as the Depositary shall determine. The
Depositary shall not lend any Series A Preferred Stock deposited hereunder.

          Upon receipt by the Depositary of a certificate or certificates for Series A Preferred Stock
deposited in accordance with the provisions of this Section, together with the other documents
required as above specified, and upon recordation of the Series A Preferred Stock on the books of
the Corporation (or its duly appointed transfer agent) in the name of the Depositary or its
nominee, the Depositary, subject to the terms and conditions of this Deposit Agreement, shall
execute and deliver to or upon the order of the person or persons named in the written order
delivered to the Depositary referred to in the first paragraph of this Section, a Receipt or
Receipts evidencing in the aggregate the number of Depositary Shares representing the Series A
Preferred Stock so deposited and registered in such name or names as may be requested by such
person or persons. The Depositary shall execute and deliver such Receipt or Receipts at the
Depositary’s Office or such other offices, if any, as the Depositary may designate. Delivery at
other offices shall be at the risk and expense of the person requesting such delivery.

          Section 2.3. Registration of Transfer of Receipts.

          Subject to the terms and conditions of this Deposit Agreement, the Depositary shall register
on its books from time to time transfers of Receipts upon any surrender thereof by the Holder in
person or by duly authorized attorney, properly endorsed or accompanied by a properly executed
instrument of transfer. Thereupon, the Depositary shall execute a new Receipt or Receipts
evidencing the same aggregate number of Depositary Shares as those evidenced by the Receipt or
Receipts surrendered and deliver such new Receipt or Receipts to or upon the order of the person
entitled thereto.

          Section 2.4. Split-ups and Combinations of Receipts; Surrender of Receipts and Withdrawal
of Series A Preferred Stock.

          Upon surrender of a Receipt or Receipts at the Depositary’s Office or at such other offices as
it may designate for the purpose of effecting a split-up or combination of such Receipt or
Receipts, and subject to the terms and conditions of this Deposit Agreement, the Depositary shall
execute a new Receipt or Receipts in the authorized denomination or denominations requested,
evidencing the aggregate number of Depositary Shares evidenced by the Receipt or Receipts

4

 

surrendered, and shall deliver such new Receipt or Receipts to or upon the order of the Holder
of the Receipt or Receipts so surrendered.

          Any Holder of a Receipt or Receipts may withdraw the number of whole shares of Series A
Preferred Stock and all money and other property, if any, represented thereby by surrendering such
Receipt or Receipts at the Depositary’s Office or at such other offices as the Depositary may
designate for such withdrawals. Thereafter, without unreasonable delay, the Depositary shall
deliver to such Holder, or to the person or persons designated by such Holder as hereinafter
provided, the number of whole shares of Series A Preferred Stock and all money and other property,
if any, represented by the Receipt or Receipts so surrendered for withdrawal, but Holders of such
whole shares of Series A Preferred Stock will not thereafter be entitled to deposit such Series A
Preferred Stock hereunder or to receive a Receipt evidencing Depositary Shares therefor. If a
Receipt delivered by the Holder to the Depositary in connection with such withdrawal shall evidence
a number of Depositary Shares in excess of the number of Depositary Shares representing the number
of whole shares of Series A Preferred Stock, Depositary shall at the same time, in addition to such
number of whole shares of Series A Preferred Stock and such money and other property, if any, to be
so withdrawn, deliver to such Holder, or subject to Section 2.3 upon his order, a new Receipt
evidencing such excess number of Depositary Shares.

          In no event will fractional shares of Series A Preferred Stock (or any cash payment in lieu
thereof) be delivered by the Depositary. Delivery of the Series A Preferred Stock and money and
other property, if any, being withdrawn may be made by the delivery of such certificates, documents
of title and other instruments as the Depositary may deem appropriate.

          If the Series A Preferred Stock and the money and other property, if any, being withdrawn are
to be delivered to a person or persons other than the Record Holder of the related Receipt or
Receipts being surrendered for withdrawal of such Series A Preferred Stock, such Holder shall
execute and deliver to the Depositary a written order so directing the Depositary and the
Depositary may require that the Receipt or Receipts surrendered by such Holder for withdrawal of
such shares of Series A Preferred Stock be properly endorsed in blank or accompanied by a properly
executed instrument of transfer in blank.

          Delivery of the Series A Preferred Stock and the money and other property, if any, represented
by Receipts surrendered for withdrawal shall be made by the Depositary at the Depositary’s Office,
except that, at the request, risk and expense of the Holder surrendering such Receipt or Receipts
and for the account of the Holder thereof, such delivery may be made at such other place as may be
designated by such Holder.

          Section 2.5. Limitations on Execution and Delivery, Transfer, Surrender and Exchange of
Receipts.

          As a condition precedent to the execution and delivery, registration of transfer, split-up,
combination, surrender or exchange of any Receipt, the Depositary, any of the Depositary’s Agents
or the Corporation may require payment to it of a sum sufficient for the payment (or, in the event
that the Depositary or the Corporation shall have made such payment, the reimbursement to it) of
any charges or expenses payable by the Holder of a Receipt pursuant to Section 5.7, may require the
production of evidence satisfactory to it as to the identity and

5

 

genuineness of any signature, and may also require compliance with such regulations, if any,
as the Depositary or the Corporation may establish consistent with the provisions of this Deposit
Agreement and/or applicable law.

          The deposit of the Series A Preferred Stock may be refused, the delivery of Receipts against
Series A Preferred Stock may be suspended, the registration of transfer of Receipts may be refused
and the registration of transfer, surrender or exchange of outstanding Receipts may be suspended
(i) during any period when the register of stockholders of the Corporation is closed or (ii) if any
such action is deemed necessary or advisable by the Depositary, any of the Depositary’s Agents or
the Corporation at any time or from time to time because of any requirement of law or of any
government or governmental body or commission or under any provision of this Deposit Agreement.

          Section 2.6. Lost Receipts, etc.

          In case any Receipt shall be mutilated, destroyed, lost or stolen, the Depositary in its
discretion may execute and deliver a Receipt of like form and tenor in exchange and substitution
for such mutilated Receipt, or in lieu of and in substitution for such destroyed, lost or stolen
Receipt, upon (i) the filing by the Holder thereof with the Depositary of evidence satisfactory to
the Depositary of such destruction or loss or theft of such Receipt, of the authenticity thereof
and of his or her ownership thereof and (ii) the Holder thereof furnishing of the Depositary with
reasonable indemnification satisfactory to the Depositary.

          Section 2.7. Cancellation and Destruction of Surrendered Receipts.

          All Receipts surrendered to the Depositary or any Depositary’s Agent shall be cancelled by the
Depositary. Except as prohibited by applicable law or regulation, the Depositary is authorized and
directed to destroy all Receipts so cancelled.

          Section 2.8. Redemption of Series A Preferred Stock.

          Whenever the Corporation shall be permitted and shall elect to redeem shares of Series A
Preferred Stock in accordance with the terms of the Certificate, it shall (unless otherwise agreed
to in writing with the Depositary) give or cause to be given to the Depositary, not less than 30
days and not more than 60 days prior to the Redemption Date (as defined below), notice of the date
of such proposed redemption of Series A Preferred Stock and of the number of such shares held by
the Depositary to be so redeemed and the applicable redemption price, which notice shall be
accompanied by a certificate from the Corporation stating that such redemption of Series A
Preferred Stock is in accordance with the provisions of the Certificate. On the date of such
redemption, provided that the Corporation shall then have paid or caused to be paid in full to the
Depositary the redemption price of the Series A Preferred Stock to be redeemed, plus an amount
equal to any declared and unpaid dividends thereon to the date fixed for redemption, in accordance
with the provisions of the Certificate, the Depositary shall redeem the number of Depositary Shares
representing such Series A Preferred Stock. The Depositary shall mail notice of the Corporation’s
redemption of Series A Preferred Stock and the proposed simultaneous redemption of the number of
Depositary Shares representing the Series A Preferred Stock to be redeemed by first-class mail,
postage prepaid, not less than 30 days and not more than 60 days prior to the date

6

 

fixed for redemption of such Series A Preferred Stock and Depositary Shares (the “Redemption
Date”), to the Record Holders of the Receipts evidencing the Depositary Shares to be so redeemed at
their respective last addresses as they appear on the records of the Depositary; but neither
failure to mail any such notice of redemption of Depositary Shares to one or more such Holders nor
any defect in any notice of redemption of Depositary Shares to one or more such Holders shall
affect the sufficiency of the proceedings for redemption as to the other Holders. Each such notice
shall be prepared by the Corporation and shall state: (i) the Redemption Date; (ii) the number of
Depositary Shares to be redeemed and, if less than all the Depositary Shares held by any such
Holder are to be redeemed, the number of such Depositary Shares held by such Holder to be so
redeemed; (iii) the redemption price; (iv) the place or places where Receipts evidencing such
Depositary Shares are to be surrendered for payment of the redemption price; and (v) that dividends
in respect of the Series A Preferred Stock represented by such Depositary Shares to be redeemed
will cease to accrue on such Redemption Date. In case less than all the outstanding Depositary
Shares are to be redeemed, the Depositary Shares to be so redeemed shall be selected either pro
rata or by lot or in such other manner as the Board of Directors of the Corporation or any duly
authorized committee of the Board of Directors of the Corporation may determine to be fair and
equitable.

          Notice having been mailed by the Depositary as aforesaid, from and after the Redemption Date
(unless the Corporation shall have failed to provide the funds necessary to redeem the Series A
Preferred Stock evidenced by the Depositary Shares called for redemption) (i) dividends on the
shares of Series A Preferred Stock so called for Redemption shall cease to accrue from and after
such date, (ii) the Depositary Shares being redeemed from such proceeds shall be deemed no longer
to be outstanding, (iii) all rights of the Holders of Receipts evidencing such Depositary Shares
(except the right to receive the redemption price) shall, to the extent of such Depositary Shares,
cease and terminate, and (iv) upon surrender in accordance with such redemption notice of the
Receipts evidencing any such Depositary Shares called for redemption (properly endorsed or assigned
for transfer, if the Depositary or applicable law shall so require), such Depositary Shares shall
be redeemed by the Depositary at a redemption price per Depositary Share equal to one-one
thousandth of the redemption price per share of Series A Preferred Stock so redeemed plus all money
and other property, if any, represented by such Depositary Shares, including all amounts paid by
the Corporation in respect of dividends which on the Redemption Date have been declared on the
shares of Series A Preferred Stock to be so redeemed and have not therefore been paid.

          If fewer than all of the Depositary Shares evidenced by a Receipt are called for redemption,
the Depositary will deliver to the Holder of such Receipt upon its surrender to the Depositary,
together with the redemption payment, a new Receipt evidencing the Depositary Shares evidenced by
such prior Receipt and not called for redemption.

ARTICLE III

CERTAIN OBLIGATIONS OF

HOLDERS OF RECEIPTS AND THE CORPORATION

          Section 3.1. Filing Proofs, Certificates and Other Information.

          Any Holder of a Receipt may be required from time to time to file such proof of residence, or
other matters or other information, to execute such certificates and to make such

7

 

representations and warranties as the Depositary or the Corporation may reasonably deem
necessary or proper. The Depositary or the Corporation may withhold the delivery, or delay the
registration of transfer or redemption, of any Receipt or the withdrawal of the Series A Preferred
Stock represented by the Depositary Shares and evidenced by a Receipt or the distribution of any
dividend or other distribution or the sale of any rights or of the proceeds thereof until such
proof or other information is filed or such certificates are executed or such representations and
warranties are made.

          Section 3.2. Payment of Taxes or Other Governmental Charges.

          Holders of Receipts shall be obligated to make payments to the Depositary of certain charges
and expenses, as provided in Section 5.7. Registration of transfer of any Receipt or any withdrawal
of Series A Preferred Stock and all money or other property, if any, represented by the Depositary
Shares evidenced by such Receipt may be refused until any such payment due is made, and any
dividends, interest payments or other distributions may be withheld or any part of or all the
Series A Preferred Stock or other property represented by the Depositary Shares evidenced by such
Receipt and not theretofore sold may be sold for the account of the Holder thereof (after
attempting by reasonable means to notify such Holder prior to such sale), and such dividends,
interest payments or other distributions or the proceeds of any such sale may be applied to any
payment of such charges or expenses, the Holder of such Receipt remaining liable for any
deficiency.

          Section 3.3. Warranty as to Series A Preferred Stock.

          The Corporation hereby represents and warrants that the Series A Preferred Stock, when issued,
will be duly authorized, validly issued, fully paid and nonassessable. Such representation and
warranty shall survive the deposit of the Series A Preferred Stock and the issuance of the related
Receipts.

          Section 3.4. Warranty as to Receipts.

          The Corporation hereby represents and warrants that the Receipts, when issued, will represent
legal and valid interests in the Series A Preferred Stock. Such representation and warranty shall
survive the deposit of the Series A Preferred Stock and the issuance of the Receipts.

ARTICLE IV

THE DEPOSITED SECURITIES; NOTICES

          Section 4.1. Cash Distributions.

          Whenever the Depositary shall receive any cash dividend or other cash distribution on the
Series A Preferred Stock, the Depositary shall, subject to Sections 3.1 and 3.2, distribute to
Record Holders of Receipts on the record date fixed pursuant to Section 4.4 such amounts of such
dividend or distribution as are, as nearly as practicable, in proportion to the respective numbers
of Depositary Shares evidenced by the Receipts held by such Holders; provided, however, that in
case the Corporation or the Depositary shall be required to withhold and shall withhold from any
cash dividend or other cash distribution in respect of the Series A Preferred Stock an amount on
account of taxes, the amount made available for distribution or distributed in respect of
Depositary

8

 

Shares shall be reduced accordingly. The Depositary shall distribute or make available for
distribution, as the case may be, only such amount, however, as can be distributed without
attributing to any Holder of Receipts a fraction of one cent, and any balance not so distributable
shall be held by the Depositary (without liability for interest thereon) and shall be added to and
be treated as part of the next sum received by the Depositary for distribution to Record Holders of
Receipts then outstanding. Each Holder of a Receipt shall provide the Depositary with its certified
tax identification number on a properly completed Form W-8 or W-9, as may be applicable. Each
Holder of a Receipt acknowledges that, in the event of non-compliance with the preceding sentence,
the Internal Revenue Code of 1986, as amended, may require withholding by the Depositary of a
portion of any of the distributions to be made hereunder.

          Section 4.2. Distributions Other than Cash, Rights, Preferences or Privileges.

          Whenever the Depositary shall receive any distribution other than cash, rights, preferences or
privileges upon the Series A Preferred Stock, the Depositary shall, subject to Sections 3.1 and
3.2, distribute to Record Holders of Receipts on the record date fixed pursuant to Section 4.4 such
amounts of the securities or property received by it as are, as nearly as practicable, in
proportion to the respective numbers of Depositary Shares evidenced by such Receipts held by such
Holders, in any manner that the Depositary may deem equitable and practicable for accomplishing
such distribution. If in the opinion of the Depositary such distribution cannot be made
proportionately among such Record Holders, or if for any other reason (including any requirement
that the Corporation or the Depositary withhold an amount on account of taxes) the Depositary
deems, after consultation with the Corporation, such distribution not to be feasible, the
Depositary may, with the approval of the Corporation, adopt such method as it deems equitable and
practicable for the purpose of effecting such distribution, including the sale (at public or
private sale) of the securities or property thus received, or any part thereof, in a commercially
reasonable manner. The net proceeds of any such sale shall, subject to Sections 3.1 and 3.2, be
distributed or made available for distribution, as the case may be, by the Depositary to Record
Holders of Receipts as provided by Section 4.1 in the case of a distribution received in cash. The
Corporation shall not make any distribution of such securities or property to the Depositary and
the Depositary shall not make any distribution of such securities or property to the Holders of
Receipts unless the Corporation shall have provided an opinion of counsel stating that such
securities or property have been registered under the Securities Act or do not need to be
registered in connection with such distributions.

          Section 4.3. Subscription Rights, Preferences or Privileges.

          If the Corporation shall at any time offer or cause to be offered to the persons in whose
names the Series A Preferred Stock is recorded on the books of the Corporation any rights,
preferences or privileges to subscribe for or to purchase any securities or any rights, preferences
or privileges of any other nature, such rights, preferences or privileges shall in each such
instance be made available by the Depositary to the Record Holders of Receipts in such manner as
the Depositary may determine, either by the issue to such Record Holders of warrants representing
such rights, preferences or privileges or by such other method as may be approved by the Depositary
in its discretion with the approval of the Corporation; provided, however, that (i) if at the time
of issue or offer of any such rights, preferences or privileges the Depositary determines that it
is not lawful or (after consultation with the Corporation) not feasible to make such rights,

9

 

preferences or privileges available to Holders of Receipts by the issue of warrants or
otherwise, or (ii) if and to the extent so instructed by Holders of Receipts who do not desire to
exercise such rights, preferences or privileges, then the Depositary, in its discretion (with
approval of the Corporation, in any case where the Depositary has determined that it is not
feasible to make such rights, preferences or privileges available), may, if applicable laws or the
terms of such rights, preferences or privileges permit such transfer, sell such rights, preferences
or privileges at public or private sale, at such place or places and upon such terms as it may deem
proper. The net proceeds of any such sale shall, subject to Sections 3.1 and 3.2, be distributed by
the Depositary to the Record Holders of Receipts entitled thereto as provided by Section 4.1 in the
case of a distribution received in cash.

          The Corporation shall notify the Depositary whether registration under the Securities Act of
the securities to which any rights, preferences or privileges relate is required in order for
Holders of Receipts to be offered or sold the securities to which such rights, preferences or
privileges relate, and the Corporation agrees with the Depositary that it will file promptly a
registration statement pursuant to the Securities Act with respect to such rights, preferences or
privileges and securities and use its best efforts and take all steps available to it to cause such
registration statement to become effective sufficiently in advance of the expiration of such
rights, preferences or privileges to enable such Holders to exercise such rights, preferences or
privileges. In no event shall the Depositary make available to the Holders of Receipts any right,
preference or privilege to subscribe for or to purchase any securities unless and until such
registration statement shall have become effective, or the Corporation shall have provided to the
Depositary an opinion of counsel to the effect that the offering and sale of such securities to the
Holders are exempt from registration under the provisions of the Securities Act.

          The Corporation shall notify the Depositary whether any other action under the laws of any
jurisdiction or any governmental or administrative authorization, consent or permit is required in
order for such rights, preferences or privileges to be made available to Holders of Receipts, and
the Corporation agrees with the Depositary that the Corporation will use its reasonable best
efforts to take such action or obtain such authorization, consent or permit sufficiently in advance
of the expiration of such rights, preferences or privileges to enable such Holders to exercise such
rights, preferences or privileges.

          Section 4.4. Notice of Dividends, etc.; Fixing Record Date for Holders of Receipts.

          Whenever any cash dividend or other cash distribution shall become payable or any distribution
other than cash shall be made, or if rights, preferences or privileges shall at any time be
offered, with respect to the Series A Preferred Stock, or whenever the Depositary shall receive
notice of any meeting at which holders of the Series A Preferred Stock are entitled to vote or of
which holders of the Series A Preferred Stock are entitled to notice, or whenever the Depositary
and the Corporation shall decide it is appropriate, the Depositary shall in each such instance fix
a record date (which shall be the same date as the record date fixed by the Corporation with
respect to or otherwise in accordance with the terms of the Series A Preferred Stock) for the
determination of the Holders of Receipts who shall be entitled to receive such dividend,
distribution, rights, preferences or privileges or the net proceeds of the sale thereof, or to give
instructions for the

10

 

exercise of voting rights at any such meeting, or who shall be entitled to notice of such
meeting or for any other appropriate reasons.

          Section 4.5. Voting Rights.

          Subject to the provisions of the Certificate, upon receipt of notice of any meeting at which
the holders of the Series A Preferred Stock are entitled to vote, the Depositary shall, as soon as
practicable thereafter, mail to the Record Holders of Receipts a notice prepared by the Corporation
which shall contain (i) such information as is contained in such notice of meeting and (ii) a
statement that the Holders may, subject to any applicable restrictions, instruct the Depositary as
to the exercise of the voting rights pertaining to the amount of Series A Preferred Stock
represented by their respective Depositary Shares (including an express indication that
instructions may be given to the Depositary to give a discretionary proxy to a person designated by
the Corporation) and a brief statement as to the manner in which such instructions may be given.
Upon the written request of the Holders of Receipts on the relevant record date, the Depositary
shall endeavor insofar as practicable to vote or cause to be voted, in accordance with the
instructions set forth in such requests, the maximum number of whole shares of Series A Preferred
Stock represented by the Depositary Shares evidenced by all Receipts as to which any particular
voting instructions are received. The Corporation hereby agrees to take all reasonable action which
may be deemed necessary by the Depositary in order to enable the Depositary to vote such Series A
Preferred Stock or cause such Series A Preferred Stock to be voted. In the absence of specific
instructions from Holders of Receipts, the Depositary will vote the Series A Preferred Stock
represented by the Depositary Shares evidenced by the Receipts of such Holders proportionately with
votes cast pursuant to instructions received from the other Holders.

          Section 4.6. Changes Affecting Deposited Securities and Reclassifications, Recapitalizations,
etc.

          Upon any change in par or stated value, split-up, combination or any other reclassification of
the Series A Preferred Stock, subject to the provisions of the Certificate, or upon any
recapitalization, reorganization, merger or consolidation affecting the Corporation or to which it
is a party, the Depositary may in its discretion with the approval of, and shall upon the
instructions of, the Corporation, and (in either case) in such manner as the Depositary may deem
equitable, (i) make such adjustments as are certified by the Corporation in the fraction of an
interest represented by one Depositary Share in one share of Series A Preferred Stock and in the
ratio of the redemption price per Depositary Share to the redemption price per share of Series A
Preferred Stock, in each case as may be necessary fully to reflect the effects of such change in
par or stated value, split-up, combination or other reclassification of the Series A Preferred
Stock, or of such recapitalization, reorganization, merger or consolidation and (ii) treat any
securities which shall be received by the Depositary in exchange for or upon conversion of or in
respect of the Series A Preferred Stock as new deposited securities so received in exchange for or
upon conversion or in respect of such Series A Preferred Stock. In any such case the Depositary may
in its discretion, with the approval of the Corporation, execute and deliver additional Receipts or
may call for the surrender of all outstanding Receipts to be exchanged for new Receipts
specifically describing such new deposited securities. Anything to the contrary herein
notwithstanding, Holders of Receipts shall have the right from and after the effective date of any
such change in par or stated value, split-up, combination or other reclassification of the Series A
Preferred Stock or

11

 

any such recapitalization, reorganization, merger or consolidation to surrender such Receipts
to the Depositary with instructions to convert, exchange or surrender the Series A Preferred Stock
represented thereby only into or for, as the case may be, the kind and amount of shares and other
securities and property and cash into which the Series A Preferred Stock represented by such
Receipts might have been converted or for which such Series A Preferred Stock might have been
exchanged or surrendered immediately prior to the effective date of such transaction.

          Section 4.7. Delivery of Reports.

          The Depositary shall furnish to Holders of Receipts any reports and communications received
from the Corporation which is received by the Depositary and which the Corporation is required to
furnish to the holders of the Series A Preferred Stock.

          Section 4.8. Lists of Receipt Holders.

          Reasonably promptly upon request from time to time by the Corporation, at the sole expense of
the Corporation, the Depositary shall furnish to it a list, as of the most recent practicable date,
of the names, addresses and holdings of Depositary Shares of all registered Holders of Receipts.

ARTICLE V

THE DEPOSITARY, THE DEPOSITARY’S

AGENTS, THE REGISTRAR AND THE CORPORATION

          Section 5.1. Maintenance of Offices, Agencies and Transfer Books by the Depositary; Registrar.

          Upon execution of this Deposit Agreement, the Depositary shall maintain at the Depositary’s
Office, facilities for the execution and delivery, registration and registration of transfer,
surrender and exchange of Receipts, and at the offices of the Depositary’s Agents, if any,
facilities for the delivery, registration of transfer, surrender and exchange of Receipts, all in
accordance with the provisions of this Deposit Agreement.

          The Depositary shall keep books at the Depositary’s Office for the registration and
registration of transfer of Receipts, which books at all reasonable times shall be open for
inspection by the Record Holders of Receipts; provided that any such Holder requesting to exercise
such right shall certify to the Depositary that such inspection shall be for a proper purpose
reasonably related to such person’s interest as an owner of Depositary Shares evidenced by the
Receipts.

          The Depositary may close such books, at any time or from time to time, when deemed expedient
by it in connection with the performance of its duties hereunder.

          The Depositary may, with the approval of the Corporation, appoint a Registrar for registration
of the Receipts or the Depositary Shares evidenced thereby. If the Receipts or the Depositary
Shares evidenced thereby or the Series A Preferred Stock represented by such Depositary Shares
shall be listed on one or more national securities exchanges, the Depositary will appoint a
Registrar (acceptable to the Corporation) for registration of the Receipts or Depositary

12

 

Shares in accordance with any requirements of such exchange. Such Registrar (which may be the
Depositary if so permitted by the requirements of any such exchange) may be removed and a
substitute registrar appointed by the Depositary upon the request or with the approval of the
Corporation. If the Receipts, Depositary Shares or Series A Preferred Stock are listed on one or
more other securities exchanges, the Depositary will, at the request of the Corporation, arrange
such facilities for the delivery, registration, registration of transfer, surrender and exchange of
the Receipts, Depositary Shares or Series A Preferred Stock as may be required by law or applicable
securities exchange regulation.

          Section 5.2. Prevention of or Delay in Performance by the Depositary, the Depositary’s Agents,
the Registrar or the Corporation.

          Neither the Depositary nor any Depositary’s Agent nor any Registrar nor the Corporation shall
incur any liability to any Holder of Receipt if by reason of any provision of any present or future
law, or regulation thereunder, of the United States of America or of any other governmental
authority or, in the case of the Depositary, the Depositary’s Agent or the Registrar, by reason of
any provision, present or future, of the Corporation’s Restated Certificate of Incorporation
(including the Certificate) or by reason of any act of God or war or other circumstance beyond the
control of the relevant party, the Depositary, the Depositary’s Agent, the Registrar or the
Corporation shall be prevented or forbidden from, or subjected to any penalty on account of, doing
or performing any act or thing which the terms of this Deposit Agreement provide shall be done or
performed; nor shall the Depositary, any Depositary’s Agent, any Registrar or the Corporation incur
liability to any Holder of a Receipt (i) by reason of any nonperformance or delay, caused as
aforesaid, in the performance of any act or thing which the terms of this Deposit Agreement shall
provide shall or may be done or performed, or (ii) by reason of any exercise of, or failure to
exercise, any discretion provided for in this Deposit Agreement except as otherwise explicitly set
forth in this Deposit Agreement.

          Section 5.3. Obligations of the Depositary, the Depositary’s Agents, the Registrar and the
Corporation.

          Neither the Depositary nor any Depositary’s Agent nor any Registrar nor the Corporation
assumes any obligation or shall be subject to any liability under this Deposit Agreement to Holders
of Receipts other than for its negligence, willful misconduct or bad faith. Notwithstanding
anything in this Agreement to the contrary, neither the Depositary, nor the Depositary’s Agent nor
any Registrar nor the Corporation shall be liable in any event for special, punitive, incidental,
indirect or consequential losses or damages of any kind whatsoever (including but not limited to
lost profits).

          Neither the Depositary nor any Depositary’s Agent nor any Registrar nor the Corporation shall
be under any obligation to appear in, prosecute or defend any action, suit or other proceeding in
respect of the Series A Preferred Stock, the Depositary Shares or the Receipts which in its opinion
may involve it in expense or liability unless indemnity satisfactory to it against all expense and
liability be furnished as often as may be required.

          Neither the Depositary nor any Depositary’s Agent nor any Registrar nor the Corporation shall
be liable for any action or any failure to act by it in reliance upon the written

13

 

advice of legal counsel or accountants, or information from any person presenting Series A
Preferred Stock for deposit, any Holder of a Receipt or any other person believed by it in good
faith to be competent to give such information. The Depositary, any Depositary’s Agent, any
Registrar and the Corporation may each rely and shall each be protected in acting upon or omitting
to act upon any written notice, request, direction or other document believed by it to be genuine
and to have been signed or presented by the proper party or parties.

          The Depositary shall not be responsible for any failure to carry out any instruction to vote
any of the shares of Series A Preferred Stock or for the manner or effect of any such vote made, as
long as any such action or non-action is not taken in bad faith. The Depositary undertakes, and
any Registrar shall be required to undertake, to perform such duties and only such duties as are
specifically set forth in this Agreement, and no implied covenants or obligations shall be read
into this Agreement against the Depositary or any Registrar.

          The Depositary, the Depositary’s Agents, and any Registrar may own and deal in any class of
securities of the Corporation and its affiliates and in Receipts. The Depositary may also act as
transfer agent or registrar of any of the securities of the Corporation and its affiliates.

          The Depositary shall not be under any liability for interest on any monies at any time
received by it pursuant to any of the provisions of this Agreement or of the Receipts, the
Depositary Shares or the Series A Preferred Stock nor shall it be obligated to segregate such
monies from other monies held by it, except as required by law. The Depositary shall not be
responsible for advancing funds on behalf of the Corporation and shall have no duty or obligation
to make any payments if it has not timely received sufficient funds to make timely payments.

          In the event the Depositary believes any ambiguity or uncertainty exists hereunder or in any
notice, instruction, direction, request or other communication, paper or document received by the
Depositary hereunder, or in the administration of any of the provisions of this Agreement, the
Depositary shall deem it necessary or desirable that a matter be proved or established prior to
taking, omitting or suffering to take any action hereunder, the Depositary may, in its sole
discretion upon written notice to the Corporation, refrain from taking any action and shall be
fully protected and shall not be liable in any way to the Corporation, any Holders of Receipts or
any other person or entity for refraining from taking such action, unless the Depositary receives
written instructions or a certificate signed by the Corporation which eliminates such ambiguity or
uncertainty to the satisfaction of the Depositary or which proves or establishes the applicable
matter to the satisfaction of the Depositary.

          Section 5.4. Resignation and Removal of the Depositary; Appointment of Successor Depositary.

          The Depositary may at any time resign as Depositary hereunder by delivering notice of its
election to do so to the Corporation, such resignation to take effect upon the appointment of a
successor Depositary and its acceptance of such appointment as hereinafter provided.

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          The Depositary may at any time be removed by the Corporation by notice of such removal
delivered to the Depositary, such removal to take effect upon the appointment of a successor
Depositary hereunder and its acceptance of such appointment as hereinafter provided.

          In case at any time the Depositary acting hereunder shall resign or be removed, the
Corporation shall, within 60 days after the delivery of the notice of resignation or removal, as
the case may be, appoint a successor Depositary, which shall be a bank or trust company having its
principal office in the United States of America and having a combined capital and surplus of at
least $50,000,000. If no successor Depositary shall have been so appointed and have accepted
appointment within 60 days after delivery of such notice, the resigning or removed Depositary may
petition any court of competent jurisdiction for the appointment of a successor Depositary. Every
successor Depositary shall execute and deliver to its predecessor and to the Corporation an
instrument in writing accepting its appointment hereunder, and thereupon such successor Depositary,
without any further act or deed, shall become fully vested with all the rights, powers, duties and
obligations of its predecessor and for all purposes shall be the Depositary under this Deposit
Agreement, and such predecessor, upon payment of all sums due it and on the written request of the
Corporation, shall promptly execute and deliver an instrument transferring to such successor all
rights and powers of such predecessor hereunder, shall duly assign, transfer and deliver all right,
title and interest in the Series A Preferred Stock and any moneys or property held hereunder to
such successor, and shall deliver to such successor a list of the Record Holders of all outstanding
Receipts and such records, books and other information in its possession relating thereto. Any
successor Depositary shall promptly mail notice of its appointment to the Record Holders of
Receipts.

          Any entity into or with which the Depositary may be merged, consolidated or converted shall be
the successor of the Depositary without the execution or filing of any document or any further act,
and notice thereof shall not be required hereunder. Such successor Depositary may authenticate the
Receipts in the name of the predecessor Depositary or its own name as successor Depositary.

          Section 5.5. Corporate Notices and Reports.

          The Corporation agrees that it will deliver to the Depositary, and the Depositary will,
promptly after receipt thereof, transmit to the Record Holders of Receipts, in each case at the
addresses recorded in the Depositary’s books, copies of all notices and reports (including without
limitation financial statements) required by law, by the rules of any national securities exchange
upon which the Series A Preferred Stock, the Depositary Shares or the Receipts are listed or by the
Corporation’s Restated Certificate of Incorporation (including the Certificate), to be furnished to
the Record Holders of Receipts. Such transmission will be at the Corporation’s expense and the
Corporation will provide the Depositary with such number of copies of such documents as the
Depositary may reasonably request. In addition, the Depositary will transmit to the Record Holders
of Receipts at the Corporation’s expense such other documents as may be requested by the
Corporation.

15

 

          Section 5.6. Indemnification by the Corporation.

          Notwithstanding Section 5.3 to the contrary, the Corporation shall indemnify the Depositary,
any Depositary’s Agent and any Registrar (including each of their officers, directors, agents and
employees) against, and hold each of them harmless from, any loss, damage, cost, penalty, liability
or expense (including the reasonable costs and expenses of defending itself) which may arise out of
acts performed, suffered or omitted to be taken in connection with this Agreement and the Receipts
by the Depositary, any Registrar or any of their respective agents (including any Depositary’s
Agent) and any transactions or documents contemplated hereby, except for any liability arising out
of negligence, willful misconduct or bad faith on the respective parts of any such person or
persons. The obligations of the Corporation set forth in this Section 5.6 shall survive any
succession of any Depositary, Registrar or Depositary’s Agent.

          Section 5.7. Fees, Charges and Expenses.

          The Corporation agrees promptly to pay the Depositary the compensation to be agreed upon with
the Corporation for all services rendered by the Depositary hereunder and to reimburse the
Depositary for its reasonable out-of-pocket expenses (including reasonable counsel fees and
expenses) incurred by the Depositary without negligence, willful misconduct or bad faith on its
part (or on the part of any agent or Depositary Agent) in connection with the services rendered by
it (or such agent or Depositary Agent) hereunder. The Corporation shall pay all charges of the
Depositary in connection with the initial deposit of the Series A Preferred Stock and the initial
issuance of the Depositary Shares, all withdrawals of shares of Series A Preferred Stock by owners
of Depositary Shares, and any redemption or exchange of the Series A Preferred Stock at the option
of the Corporation. The Corporation shall pay all transfer and other taxes and governmental charges
arising solely from the existence of the depositary arrangements. All other transfer and other
taxes and governmental charges shall be at the expense of Holders of Depositary Shares evidenced by
Receipts. If, at the request of a Holder of Receipts, the Depositary incurs charges or expenses for
which the Corporation is not otherwise liable hereunder, such Holder will be liable for such
charges and expenses; provided, however, that the Depositary may, at its sole option, require a
Holder of a Receipt to prepay the Depositary any charge or expense the Depositary has been asked to
incur at the request of such Holder of Receipts. The Depositary shall present its statement for
charges and expenses to the Corporation at such intervals as the Corporation and the Depositary may
agree.

ARTICLE VI

AMENDMENT AND TERMINATION

          Section 6.1. Amendment.

          The form of the Receipts and any provisions of this Deposit Agreement may at any time and from
time to time be amended by agreement between the Corporation and the Depositary in any respect
which they may deem necessary or desirable; provided, however, that no such amendment which shall
materially and adversely alter the rights of the Holders of Receipts shall be effective against the
Holders of Receipts unless such amendment shall have been approved by the Holders of Receipts
representing in the aggregate at least a two-thirds majority of the Depositary Shares then
outstanding. Every Holder of an outstanding Receipt at the time any such amendment

16

 

becomes effective shall be deemed, by continuing to hold such Receipt, to consent and agree to
such amendment and to be bound by the Depositary Agreement as amended thereby. In no event shall
any amendment impair the right, subject to the provisions of Sections 2.5 and 2.6 and Article III,
of any owner of Depositary Shares to surrender any Receipt evidencing such Depositary Shares to the
Depositary with instructions to deliver to the Holder the Series A Preferred Stock and all money
and other property, if any, represented thereby, except in order to comply with mandatory
provisions of applicable law or the rules and regulations of any governmental body, agency or
commission, or applicable securities exchange.

          Section 6.2. Termination.

          This Agreement may be terminated by the Corporation or the Depositary only if (i) all
outstanding Depositary Shares issued hereunder have been redeemed pursuant to Section 2.8, (ii)
there shall have been made a final distribution in respect of the Series A Preferred Stock in
connection with any liquidation, dissolution or winding up of the Corporation and such distribution
shall have been distributed to the Holders of Receipts representing Depositary Shares pursuant to
Section 4.1 or 4.2, as applicable or (iii) upon the consent of Holders of Receipts representing in
the aggregate not less than two-thirds of the Depositary Shares outstanding.

          Upon the termination of this Deposit Agreement, the Corporation shall be discharged from all
obligations under this Deposit Agreement except for its obligations to the Depositary, any
Depositary’s Agent and any Registrar under Sections 5.6 and 5.7.

ARTICLE VII

MISCELLANEOUS

          Section 7.1. Counterparts.

          This Deposit Agreement may be executed in any number of counterparts, and by each of the
parties hereto on separate counterparts, each of which counterparts, when so executed and
delivered, shall be deemed an original, but all such counterparts taken together shall constitute
one and the same instrument.

          Section 7.2. Exclusive Benefit of Parties.

          This Deposit Agreement is for the exclusive benefit of the parties hereto, and their
respective successors hereunder, and shall not be deemed to give any legal or equitable right,
remedy or claim to any other person whatsoever.

          Section 7.3. Invalidity of Provisions.

          In case any one or more of the provisions contained in this Deposit Agreement or in the
Receipts should be or become invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein or therein shall in no way
be affected, prejudiced or disturbed thereby.

17

 

          Section 7.4. Notices.

          Any and all notices to be given to the Corporation hereunder or under the Receipts shall be in
writing and shall be deemed to have been duly given if personally delivered or sent by mail, or by
telegram or facsimile transmission or electronic mail, confirmed by letter, addressed to the
Corporation at

U.S. Bancorp

800 Nicollet Mall

Minneapolis, Minnesota 55402

Attention: Treasury Department

Facsimile No.: (612) 303-1338

or at any other addresses of which the Corporation shall have notified the Depositary in writing.

          Any and all notices to be given to the Depositary hereunder or under the Receipts shall be in
writing and shall be deemed to have been duly given if personally delivered or sent by mail, or by
facsimile transmission confirmed by letter, addressed to the Depositary at the Depositary’s Office
at

U.S. Bank National Association

100 Wall Street

New York, New York 10005

Attention: Corporate Trust Services

Facsimile No.: (212) 509-3384

or at any other address of which the Depositary shall have notified the Corporation in writing.

          Any and all notices to be given to any Record Holder of a Receipt hereunder or under the
Receipts shall be in writing and shall be deemed to have been duly given if personally delivered or
sent by mail or facsimile transmission or confirmed by letter, addressed to such Record Holder at
the address of such Record Holder as it appears on the books of the Depositary, or if such Holder
shall have timely filed with the Depositary a written request that notices intended for such Holder
be mailed to some other address, at the address designated in such request.

          Delivery of a notice sent by mail or by facsimile transmission shall be deemed to be effected
at the time when a duly addressed letter containing the same (or a confirmation thereof in the case
of a facsimile transmission) is deposited, postage prepaid, in a post office letter box. The
Depositary or the Corporation may, however, act upon any facsimile transmission received by it from
the other or from any Holder of a Receipt, notwithstanding that such facsimile transmission shall
not subsequently be confirmed by letter or as aforesaid.

          Section 7.5. Depositary’s Agents.

          The Depositary may from time to time appoint Depositary’s Agents to act in any respect for the
Depositary for the purposes of this Deposit Agreement and may at any time appoint additional
Depositary’s Agents and vary or terminate the appointment of such Depositary’s Agents. The
Depositary will promptly notify the Corporation of any such action.

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          Section 7.6. Appointment of Registrar, Dividend Disbursing Agent and Redemption Agent in
Respect of the Series A Preferred Stock.

          Unless otherwise set forth on the Officer’s Certificate delivered pursuant to Section 2.2
hereof, the Corporation hereby appoints U.S. Bank National Association as registrar, dividend
disbursing agent and redemption agent in respect of the Series A Preferred Stock deposited with the
Depositary hereunder, and U.S. Bank National Association hereby accepts such appointments. With
respect to the appointments of U.S. Bank National Association as registrar, dividend disbursing
agent and redemption agent in respect of the Series A Preferred Stock, each of the Corporation and
U.S. Bank National Association, in their respective capacities under such appointments, shall be
entitled to the same rights, indemnities, immunities and benefits as the Corporation and Depositary
hereunder, respectively, as if explicitly named in each such provision.

          Section 7.7. Appointment of Calculation Agent.

          The Officer’s Certificate referred to in Section 2.2 hereof shall set forth the name of the
calculation agent, if any, with respect to calculating the amount of dividends to be paid with
respect to the Series A Preferred Stock, and if the Officer’s Certificate names U.S. Bank National
Association as calculation agent, it shall be deemed to be appointed as calculation agent only if
U.S. Bank National Association has accepted such appointment in writing as agreed between U.S. Bank
National Association and the Corporation. If U.S. Bank National Association is appointed as such
calculation agent, each of the Corporation and such calculation agent, in their respective
capacities under such appointment, shall be entitled to the same rights, indemnities, immunities
and benefits as the Corporation and Depositary hereunder, respectively, as if explicitly named in
each such provision. Also, if U.S. Bank National Association is appointed as such calculation
agent, it shall be entitled to receive a description of the calculations required under the Series
A Preferred Stock and the categories of information under which it is entitled to seek guidance
from the Corporation. In furtherance thereof, such calculation agent may seek guidance from the
Corporation with one day notice in making any determinations thereunder.

          Section 7.8. Holders of Receipts Are Parties.

          The Holders of Receipts from time to time shall be parties to this Deposit Agreement and shall
be bound by all of the terms and conditions hereof and of the Receipts and of the Officer’s
Certificate by acceptance of delivery thereof.

          Section 7.9. Governing Law.

          This Deposit Agreement and the Receipts of each series and all rights hereunder and thereunder
and provisions hereof and thereof shall be governed by, and construed in accordance with, the laws
of the State of New York without giving effect to applicable conflicts of law principles.

          Section 7.10. Inspection of Deposit Agreement.

          Copies of this Deposit Agreement shall be filed with the Depositary and the Depositary’s
Agents and shall be open to inspection during business hours at the Depositary’s Office and the
respective offices of the Depositary’s Agents, if any, by any Holder of a Receipt.

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          Section 7.11. Headings.

          The headings of articles and sections in this Deposit Agreement and in the form of the Receipt
set forth in Exhibit A hereto have been inserted for convenience only and are not to be regarded as
a part of this Deposit Agreement or the Receipts or to have any bearing upon the meaning or
interpretation of any provision contained herein or in the Receipts.

[Remainder of page intentionally left blank; signature page follows.]

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          IN WITNESS WHEREOF, the Corporation and the Depositary have duly executed this Agreement as of
the day and year first above set forth, and all Holders of Receipts shall become parties hereto by
and upon acceptance by them of delivery of Receipts issued in accordance with the terms hereof.

	 	 	 	 	 
	 	U.S. BANCORP

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	U.S. Bank National Association

 	 
	 	Attested by:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

21

 

EXHIBIT A

[FORM OF FACE OF RECEIPT]

Unless this receipt is presented by an authorized representative of The Depository Trust Company, a
New York corporation (“DTC”), to U.S. Bancorp or its agent for registration of transfer, exchange,
or payment, and any certificate issued is registered in the name of Cede & Co. or in such other
name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co.
or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER,
PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the
registered owner hereof, Cede & Co., has an interest herein.

DEPOSITARY SHARES

DR

DEPOSITARY RECEIPT FOR DEPOSITARY SHARES, EACH

REPRESENTING ONE-ONE THOUSANDTH OF ONE SHARE OF

SERIES A NON-CUMULATIVE PERPETUAL PREFERRED STOCK,

OF

U.S. BANCORP

INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE

CUSIP                     

SEE REVERSE FOR CERTAIN DEFINITIONS

          U.S. Bank National Association, as Depositary (the “Depositary”), hereby certifies that Cede &
Co. is the registered owner of DEPOSITARY SHARES (“Depositary Shares”), each Depositary Share
representing one-thousand of one share of Series A Non-Cumulative Perpetual Preferred Stock,
liquidation preference $100,000 per share, par value $1.00 per share (the “Series A Preferred
Stock”), of U.S. Bancorp, a Delaware corporation (the “Corporation”), on deposit with the
Depositary, subject to the terms and entitled to the benefits of the Deposit Agreement dated as of
June                     , 2010 (the “Deposit Agreement”), among the Corporation, the Depositary and the Holders
from time to time of the Depositary Receipts. By accepting this Depositary Receipt, the Holder
hereof becomes a party to and agrees to be bound by all the terms and conditions of the Deposit
Agreement. This Depositary Receipt shall not be valid or obligatory for any purpose or entitled to
any benefits under the Deposit Agreement unless it shall have been executed by the Depositary by
the manual signature of a duly authorized officer or, if executed in facsimile by the Depositary,
countersigned by a Registrar in respect of the Depositary Receipts by the manual signature of a
duly authorized officer thereof.

Dated:

U.S. Bank National Association, Depositary

By:                                                             

Authorized Officer

A-1

 

[FORM OF REVERSE OF RECEIPT]

U.S. BANCORP

          U.S. BANCORP WILL FURNISH WITHOUT CHARGE TO EACH RECEIPTHOLDER WHO SO REQUESTS A COPY OF THE
DEPOSIT AGREEMENT AND A COPY OR SUMMARY OF THE CERTIFICATE OF DESIGNATIONS OF THE SERIES A
NON-CUMULATIVE PERPETUAL PREFERRED STOCK OF U.S. BANCORP. ANY SUCH REQUEST IS TO BE ADDRESSED TO
THE DEPOSITARY NAMED ON THE FACE OF THIS RECEIPT.

          The Corporation will furnish without charge to each receiptholder who so requests the powers,
designations, preferences and relative, participating, optional or other special rights of each
class of stock or series thereof of the Corporation, and the qualifications, limitations or
restrictions of such preferences and/or rights. Such request may be made to the Corporation or to
the Registrar.

EXPLANATION OF ABBREVIATIONS

          The following abbreviations when used in the form of ownership on the face of this certificate
shall be construed as though they were written out in full according to applicable laws or
regulations. Abbreviations in addition to those appearing below may be used.

	 	 	 	 	 	 	 
	Abbreviation	 	Equivalent Phrase	 	Abbreviation	 	Equivalent Phrase
	JT TEN

	 	As joint tenants, with right of survivorship and not as tenants in common	 	TEN BY ENT	 	As tenants by the entireties
	 
	 	 	 	 	 	 
	TEN IN COM

	 	As tenants in common	 	UNIF GIFT MIN ACT	 	Uniform Gifts to
Minors Act

	 	 	 	 	 	 	 	 	 	 	 
	Abbreviation	 	Equivalent Word	 	Abbreviation	 	Equivalent Word	 	Abbreviation	 	Equivalent Word
	ADM

	 	Administrator(s),

Administratrix	 	EX	 	Executor(s),

Executrix	 	PAR	 	Paragraph
	 
	 	 	 	 	 	 	 	 	 	 
	AGMT

	 	Agreement	 	FBO	 	For the benefit of	 	PL	 	Public Law
	 
	 	 	 	 	 	 	 	 	 	 
	ART

	 	Article	 	FDN	 	Foundation	 	TR	 	(As) trustee(s),

for, of
	 
	 	 	 	 	 	 	 	 	 	 
	CH

	 	Chapter	 	GDN	 	Guardian(s)	 	U	 	Under
	 
	 	 	 	 	 	 	 	 	 	 
	CUST

	 	Custodian for	 	GDNSHP	 	Guardianship	 	UA	 	Under agreement
	 
	 	 	 	 	 	 	 	 	 	 
	DEC

	 	Declaration	 	MIN	 	Minor(s)	 	UW	 	Under will of, Of

will of, Under last

will & testament
	 
	 	 	 	 	 	 	 	 	 	 
	EST

	 	Estate, of Estate of	 	 	 	 	 	 	 	 

          For value received,
___ hereby sell(s), assign(s) and transfer(s) unto

          INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE

          PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE Depositary Shares
represented by the within Receipt, and do(es) hereby irrevocably  constitute and appoint ___ Attorney to transfer the said
Depositary Shares on the books of the within named Depositary with full power of substitution in the premises.

Dated:

A-2

 

NOTICE: The signature to the assignment must correspond with the name as written upon the face of
this Receipt in every particular, without alteration or enlargement or any change whatsoever.

SIGNATURE GUARANTEED

NOTICE: If applicable, the signature(s) should be guaranteed by an eligible guarantor institution
(banks, stockbrokers, savings and loan associations, and credit unions with membership in an
approved signature guarantee medallion program), pursuant to Rule 17Ad-15 under the Securities
Exchange Act of 1934.

A-3

 

EXHIBIT B

FORM OF OFFICER’S CERTIFICATE

          I,                     , [title]                     of U.S. Bancorp (the “Corporation”), hereby certify that pursuant to
the terms of an Amended Certificate of Designations filed with the Secretary of State of the State
of Delaware on June                     , 2010 (the “Certificate of Designations”), and pursuant to resolutions
adopted by the Risk Management Committee of the Board of Directors of the Corporation (the “Risk
Management Committee”) on April 19, 2010, the Corporation has established the Series A Preferred
Stock which the Corporation desires to deposit with the Depositary for the purposes of being
subject to the terms and conditions of the Deposit Agreement, dated as of June                     , 2010, by and
among the Corporation, U.S. Bank National Association and the Holders of Receipts issued thereunder
from time to time (the “Deposit Agreement”). In connection therewith, the Board of Directors or a
duly authorized committee thereof has authorized the terms and conditions with respect to the
Series A Preferred Stock as described in the Certificate of Designations attached as Annex A
hereto. Any terms of the Series A Preferred Stock that are not so described in the Certificate of
Designations and any terms of the Receipts representing such Series A Preferred Stock that are not
described in the Deposit Agreement are described below:

Aggregate Number of shares of Series A Preferred Stock issued on the day hereof:

CUSIP Number for Receipt:

Denomination of Depositary Share per

share of Series A Preferred Stock (if different than

1/1,000th of a share of Series A Preferred Stock):

Redemption Provisions (if different

than as set forth in the Deposit

Agreement):

Name of Global Receipt Depositary:

Name of Registrar

with Respect to the Receipts (if

other than U.S. Bank National Association.):

Name of Registrar,

Dividend Disbursing Agent, and

Redemption Agent with Respect to the

Series A Preferred Stock (if other than U.S. Bank National Association):

Name of Calculation Agent, if any:

Special terms and conditions:

Closing date:

B-1

 

          Pursuant to the terms of the Deposit Agreement, the Corporation hereby appoints U.S. Bank
National Association as calculation agent (the “Calculation Agent”) for the Series A Preferred
Stock described in the Certificate of Designations attached hereto.

          All capitalized terms used but not defined herein shall have such meaning as ascribed thereto
in the Deposit Agreement.

          This certificate is dated June                     , 2010.

	 	 	 	 	 	 	 

	 

	 	Name:
	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

Agreed and Accepted by U.S. Bank National Association, as Calculation Agent

	 	 	 	 	 	 	 

	 

	 	Name:
	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

B-2

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