Document:

Registration Rights Agreement Between The Company And Vestal Venture Capital

 Exhibit 4.4 
  
 REGISTRATION RIGHTS AGREEMENT 
  
 This REGISTRATION RIGHTS AGREEMENT (the “Agreement”) is made and entered into as of the 25th day of April,
2005, by and among I2 TELECOM INTERNATIONAL, INC., a Washington corporation (the “Company”), and each of the investors listed on the signature pages hereto (each an “Investor” and, collectively, the “Investors”).

  
 IN CONSIDERATION of the mutual promises and covenants
set forth herein, and intending to be legally bound, the parties hereto hereby agree as follows: 
  
 1. RESTRICTIONS ON TRANSFERABILITY OF SECURITIES; REGISTRATION RIGHTS. 
  
 1.1 Certain Definitions. As used in this Agreement, the following terms shall have the meanings set forth below: 
  
 (a) “Common Stock” shall mean the Company’s common stock, no
par value per share. 
  
 (b) “Exchange Act” shall mean
the Securities Exchange Act of 1934, as amended. 
  
 (c)
“Holder” shall mean any Investor who holds Registrable Securities and any holder of Registrable Securities to whom the rights conferred by this Agreement have been transferred in compliance with Section 1.2 hereof. 
  
 (d) “Other Shareholders” shall mean persons who, by virtue of
agreements with the Company other than this Agreement, are entitled to include their securities in certain registrations hereunder. 
  
 (e) “Registrable Securities” shall mean the Warrants held by the Investors listed on the signature pages hereto and any shares of Common Stock
that such Investor has the right to acquire, or does acquire, upon the exercise of the Warrants, provided that a Registrable Security ceases to be a Registrable Security when (i) it is registered under the Securities Act of 1933, as amended (the
“Securities Act”); (ii) it is sold or transferred in accordance with the requirements of Rule 144 (or similar provisions then in effect) promulgated by the SEC under the Securities Act (“Rule 144”); (iii) it is eligible to be
sold or transferred under Rule 144; or (iv) it is sold in a private transaction in which the transferor’s rights under this Agreement are not assigned. 
  
 (f) The terms “register,” “registered” and “registration” shall refer to a registration effected by preparing and filing a
registration statement in compliance with the Securities Act and applicable rules and regulations thereunder and the declaration or ordering of the effectiveness of such registration statement. 

 (g) “Registration Expenses” shall mean all expenses incurred in effecting any registration
pursuant to this Agreement, including, without limitation, all registration, qualification, and filing fees, printing expenses, escrow fees, fees and disbursements of counsel for the Company, blue sky fees and expenses, and expenses of any regular
or special audits incident to or required by any such registration, but shall not include (i) Selling Expenses; (ii) the compensation of regular employees of the Company, which shall be paid in any event by the Company; and (iii) blue sky fees and
expenses incurred in connection with the registration or qualification of any Registrable Securities in any state, province or other jurisdiction in a registration pursuant to Section 1.3 hereof to the extent that the Company shall otherwise be
making no offers or sales in such state, province or other jurisdiction in connection with such registration. 
  
 (h) “Restricted Securities” shall mean any Registrable Securities required to bear the legend set forth in Section 1.2(c) hereof. 
  
 (i) “Rule 145” shall mean Rule 145 as promulgated by the SEC under
the Securities Act, as such Rule may be amended from time to time, or any similar successor rule that may be promulgated by the SEC. 
  
 (j) “SEC” shall mean the Securities and Exchange Commission. 
  
 (k) “Selling Expenses” shall mean all underwriting discounts, selling commissions and stock transfer taxes
applicable to the sale of Registrable Securities. 
  
 (l)
“Warrantholder” shall mean any holder of a Warrant. 
  
 (m) “Warrant Shares” shall mean the shares of Common Stock issuable by the Company upon exercise of the Warrants. 
  
 (n) “Warrants” shall mean the warrants to purchase shares of Common Stock at an exercise price of $.96 per share issued by the Company on the
date hereof. 
  
 1.2 Restrictions on Transfer.

  
 (a) Each Holder agrees not to make any disposition
of all or any portion of the Registrable Securities unless and until (i) there is then in effect a registration statement under the Securities Act covering such proposed disposition and such disposition is made in accordance with such registration
statement; or (ii) (A) such Holder shall have notified the Company of the proposed disposition and shall have furnished the Company with a detailed statement of the circumstances surrounding the proposed disposition and (B) if reasonably requested
by the Company, such Holder shall have furnished the Company with an opinion of counsel, reasonably satisfactory to the Company, that such disposition will not require registration of such shares under the Securities Act. 
  

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 (b) Notwithstanding the provisions of subparagraphs (i) and (ii) of paragraph (a) above, no such
registration statement or opinion of counsel shall be necessary for a transfer by a Holder which is (i) a partnership to its partners in accordance with their partnership interests; (ii) a limited liability company to its members in accordance with
their member interests; or (iii) to the Holder’s family member or a trust for the benefit of an individual Holder or one or more of his family members, provided that the transferee will be subject to the terms of this Section 1.2 to the same
extent as if it were an original Holder hereunder. 
  
 (c) Each
certificate representing Registrable Securities shall (unless otherwise permitted by the provisions of this Agreement) be stamped or otherwise imprinted with a legend substantially similar to the following (in addition to any legend required under
applicable state securities laws): 
  
 THE SECURITIES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD OR OFFERED FOR SALE OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH REGISTRATION IS NOT REQUIRED. 
  
 (d) The Company shall be obligated to promptly reissue unlegended certificates at the request of any Holder thereof if the
Holder shall have obtained an opinion of counsel (which counsel may be counsel to the Company) reasonably acceptable to the Company to the effect that the securities proposed to be disposed of may lawfully be so disposed of in compliance with the
Securities Act without registration, qualification or legend. 
  
 (e) Any legend endorsed on an instrument pursuant to applicable state securities laws and the stop-transfer instructions with respect to such securities shall be removed upon receipt by the Company of an order of the appropriate blue sky
authority authorizing such removal or if the Holder shall request such removal and shall have obtained and delivered to the Company an opinion of counsel reasonably acceptable to the Company to the effect that such legend and/or stop-transfer
instructions are no longer required pursuant to applicable state securities laws. 
  
 1.3 Company Registration. 
  
 (a) Right to Piggyback. If at any time prior to the 1 year anniversary of the date hereof the Company shall determine to register any shares of Common Stock for its own 

  

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account, other than a registration relating solely to employee benefit plans, or a registration relating solely to a Rule 145 transaction, or a registration
on any registration form that does not permit secondary sales, then the Company will: 
  
 (i) promptly give to each Holder written notice thereof, which notice briefly describes the Holders’ rights under this Section 1.3 (including notice deadlines); 
  
 (ii) use its best efforts to include in such registration (and any related
filing or qualification under applicable blue sky laws), except as set forth in Section 1.3(b) below, and in any underwriting involved therein, all the Registrable Securities specified in a written request or requests, made by any Holder and
received by the Company within ten (10) days after the written notice from the Company described in clause (i) above is mailed or delivered by the Company, provided that such Holders shall have requested for inclusion in such registration at
least ten percent (10%) of the aggregate number of the Registrable Securities which have been issued to the Holders prior to the date of such written request. Such written request may specify all or a part of a Holder’s Registrable Securities;
and 
  
 (iii) keep such registration effective for a period of
one hundred twenty (120) days or until the Holder or Holders have completed the distribution described in the registration statement relating thereto, whichever first occurs. 
  
 (b) Underwriting. If the registration of which the Company gives notice is for a registered public offering involving
an underwriting, the Company shall so advise the Holders as a part of the written notice given pursuant to Section 1.3(a)(i). In such event, the right of any Holder to registration pursuant to this Section 1.3 shall be conditioned upon such
Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided herein. All Holders proposing to distribute their securities through such underwriting shall
(together with the Company and the other holders of securities of the Company with registration rights to participate therein distributing their securities through such underwriting) enter into an underwriting agreement in customary form with the
representative of the underwriter or underwriters selected by the Company. Notwithstanding any other provision of this Section 1.3, if the representative of the underwriters advises the Company in writing that marketing factors require a limitation
on the number of shares to be underwritten, then the representative may (subject to the limitations set forth below) exclude all Registrable Securities from, or limit the number of Registrable Securities to be included in, the registration and
underwriting. The Company shall so advise all Holders of securities requesting registration, and the number of shares of securities that are entitled to be included in the registration and underwriting shall be allocated first to the Company for
securities being sold for its own account and thereafter as set forth in Section 1.10 hereof. If any person does not agree to the terms of any such underwriting, then such person shall be excluded therefrom by written notice from the Company or the
underwriter. Any Registrable Securities or other securities excluded or withdrawn from such underwriting shall be withdrawn from such registration. If shares are 

  

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so withdrawn from the registration and if the number of shares of Registrable Securities to be included in such registration was previously reduced as a
result of marketing factors, then the Company shall then offer to all persons who have retained the right to include securities in the registration the right to include additional securities in the registration in an aggregate amount equal to the
number of shares so withdrawn, with such shares to be allocated among the persons requesting additional inclusion in accordance with Section 1.10 hereof. 
  
 1.4 Expenses of Registration. All Registration Expenses incurred in connection with any registration, qualification or compliance pursuant
to Section 1.3 hereof shall be borne by the Company. All Selling Expenses relating to securities so registered shall be borne by the Holders of such securities pro rata on the basis of the number of shares of securities so registered on their
behalf. 
  
 1.5 Registration Procedures. In the case
of each registration effected by the Company pursuant to Section 1.3 hereof, the Company will keep each Holder advised in writing as to the initiation of each registration and as to the completion thereof. At its expense, the Company will use its
best efforts to: 
  
 (a) prepare and file with the SEC such
amendments and supplements to such registration statement and the prospectus used in connection with such registration statement as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all
securities covered by such registration statement; 
  
 (b) furnish
such number of prospectuses and other documents incident thereto, including any amendment of or supplement to the prospectus, as a Holder from time to time may reasonably request; 
  
 (c) notify each Holder of Registrable Securities covered by such registration statement at any time when a prospectus
relating thereto is required to be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or
omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading or incomplete in the light of the circumstances then existing, and at the request of any such Holder, prepare and furnish to such
Holder a reasonable number of copies of a supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchasers of such Registrable Securities, such prospectus shall not include an untrue statement
of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading or incomplete in the light of the circumstances then existing; provided, however, the Company
shall not be obligated to prepare and furnish any such prospectus supplements or amendments relating to any material nonpublic information at any such time as the Board of Directors of the Company has determined that, for good business reasons, the
disclosure of such material nonpublic information at that time is contrary to the best interests of the Company in the circumstances and is not otherwise required under applicable law (including applicable securities laws); 
  

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 (d) cause all such Registrable Securities registered pursuant hereunder to be listed on each securities
exchange and/or included in any national quotation system on which similar securities issued by the Company are then listed or included; 
  
 (e) provide a transfer agent and registrar for all Registrable Securities registered pursuant to such registration statement and a CUSIP number for all
such Registrable Securities, in each case not later than the effective date of such registration; and 
  
 (f) otherwise use its best efforts to comply with all applicable rules and regulations of the SEC. 
  
 1.6 Indemnification. 
  
 (a) The Company will indemnify each Holder, each of such
Holder’s officers, directors, partners, legal counsel and accountants and each person controlling such Holder within the meaning of Section 15 of the Securities Act, as applicable, with respect to which registration, qualification, or
compliance has been effected pursuant to this Section 1, and each underwriter, if any, and each person who controls within the meaning of Section 15 of the Securities Act any underwriter, against all expenses, claims, losses, damages, and
liabilities (or actions, proceedings, or settlements in respect thereof) arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any prospectus, offering circular, or other document (including
any related registration statement, notification, or the like) incident to any such registration, qualification, or compliance, or based on any omission (or alleged omission) to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, or any violation by the Company of the Securities Act or any rule or regulation thereunder applicable to the Company or relating to action or inaction required of the Company in connection
with any such registration, qualification, or compliance, and will reimburse each such Holder, each of its officers, directors, partners, legal counsel and accountants and each person controlling such Holder, each such underwriter, and each person
who controls any such underwriter, for any legal and any other expenses reasonably incurred in connection with investigating and defending or settling any such claim, loss, damage, liability, or action, provided that the Company will not be liable
in any such case to the extent that any such claim, loss, damage, liability, or expense arises out of or is based on any untrue statement or omission based upon written information furnished to the Company by such Holder or underwriter and stated to
be specifically for use therein. It is agreed that the indemnity agreement contained in this Section 1.6(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, or action if such settlement is effected without
the consent of the Company (which consent shall not be unreasonably withheld). 
  
 (b) Each Holder will, if Registrable Securities held by such Holder are included in the securities as to which such registration, qualification, or compliance is being effected, indemnify the Company, each of its
directors, officers, partners, legal counsel and accountants and each underwriter, if any, of the Company’s securities covered by such a 

  

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registration statement, each person who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act, each other such
Holder and Other Shareholder, and each of their officers, directors, and partners, and each person controlling such Holder or Other Shareholder, against all claims, losses, damages and liabilities (or actions in respect thereof) arising out of or
based on any untrue statement (or alleged untrue statement) of a material fact contained in any such registration statement, prospectus, offering circular, or other document, or any omission (or alleged omission) to state therein a material fact
required to be stated therein or necessary to make the statements therein not misleading, and will reimburse the Company and such Holders, Other Shareholders, directors, officers, partners, legal counsel, and accountants, persons, underwriters, or
control persons for any legal or any other expenses reasonably incurred in connection with investigating or defending any such claim, loss, damage, liability, or action, in each case to the extent, but only to the extent, that such untrue statement
(or alleged untrue statement) or omission (or alleged omission) is made in such registration statement, prospectus, offering circular or other document in reliance upon and in conformity with written information furnished to the Company by such
Holder and stated to be specifically for use therein; provided, however, (i) that the obligations of such Holder hereunder shall not apply to amounts paid in settlement of any such claims, losses, damages, or liabilities (or actions in
respect thereof) if such settlement is effected without the consent of such Holder (which consent shall not be unreasonably withheld) and (ii) that in no event shall any indemnity under this Section 1.6(b) exceed the gross proceeds from the offering
received by such Holder. 
  
 (c) Each party entitled to
indemnification under this Section 1.6 (the “Indemnified Party”) shall give notice to the party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party has actual knowledge of any
claim as to which indemnity may be sought, and shall permit the Indemnifying Party to assume the defense of such claim or any litigation resulting therefrom, provided that counsel for the Indemnifying Party, who shall conduct the defense of such
claim or any litigation resulting therefrom, shall be approved by the Indemnified Party (whose approval shall not unreasonably be withheld), and the Indemnified Party may participate in such defense at such party’s expense, and provided further
that the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Section 1.6, to the extent such failure is not prejudicial. No Indemnifying Party, in the defense of
any such claim or litigation, shall, except with the consent of each Indemnified Party, consent to entry of any judgment or enter into any settlement that does not include as an unconditional term thereof the giving by the claimant or plaintiff of a
release to such Indemnified Party from all liability in respect to such claim or litigation. Each Indemnified Party shall furnish such information regarding itself or the claim in question as an Indemnifying Party may reasonably request in writing
and as shall be reasonably required in connection with defense of such claim and litigation resulting therefrom. 
  
 (d) If the indemnification provided for in this Section 1.6 is held by a court of competent jurisdiction to be unavailable to an Indemnified Party with
respect to any loss, liability, claim, damage, or expense referred to therein, then the Indemnifying Party, in lieu of indemnifying such Indemnified Party hereunder, shall contribute to the amount paid or 

  

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payable by such Indemnified Party as a result of such loss, liability, claim, damage, or expense in such proportion as is appropriate to reflect the relative
fault of the Indemnifying Party on the one hand and of the Indemnified Party on the other in connection with the conduct, statements or omissions that resulted in such loss, liability, claim, damage, or expense as well as any other relevant
equitable considerations. The relative fault of the Indemnifying Party and of the Indemnified Party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a
material fact relates to information supplied by the Indemnifying Party or by the Indemnified Party and the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission.

  
 (e) Notwithstanding the foregoing, to the extent that the
provisions on indemnification and contribution contained in the underwriting agreement entered into by the Indemnifying Party and the Indemnified Party in connection with the underwritten public offering are in conflict with the foregoing
provisions, the provisions in the underwriting agreement shall control. 
  
 1.7 Information by Holder. Each Holder of Registrable Securities shall furnish to the Company such information regarding such Holder and the distribution proposed by such Holder as the Company may reasonably request in writing
and as shall be reasonably required in connection with any registration, qualification, or compliance referred to in this Section 1.7. 
  
 1.8 Rule 144 Reporting. With a view to making available the benefits of certain rules and regulations of the SEC that may permit the sale of
the Restricted Securities to the public without registration, the Company agrees to use its best efforts to: 
  
 (a) make and keep adequate public information regarding the Company available as those terms are understood and defined in Rule 144; 
  
 (b) file with the SEC in a timely manner all reports and other documents
required of the Company under the Securities Act and the Exchange Act; and 
  
 (c) so long as a Holder owns any Restricted Securities, furnish to the Holder forthwith upon written request a written statement by the Company as to its compliance with the reporting requirements of Rule 144 and of
the Securities Act and the Exchange Act, a copy of the most recent annual or quarterly report of the Company, and such other reports and documents so filed as a Holder may reasonably request in availing itself of any rule or regulation of the SEC
allowing a Holder to sell any such securities without registration. 
  
 1.9 Notice to Discontinue; Notice by Holders. 
  
 (a) Notice to Discontinue. Each Holder agrees that, upon receipt of any notice from the Company of any event of the kind described in Section 1.5(c), the Holder 

  

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will discontinue disposition of Registrable Securities until the Holder receives copies of the supplemented or amended prospectus contemplated by Section
1.5(c). In addition, if the Company requests, the Holder will deliver to the Company (at the Company’s expense) all copies, other than permanent file copies then in the Holder’s possession, of the prospectus covering the Registrable
Securities current at the time of receipt of such notice. If the Company gives any such notice, then the time period mentioned in Section 1.3(a)(iii) shall be extended by the number of days elapsing between the date of notice and the date that each
Holder who has included Registrable Securities in such registration receives the copies of the supplemented or amended prospectus contemplated in Section 1.5(c). 
  
 (b) Notice by Holders. Whenever the Holders have requested that any Registrable Securities be registered pursuant to
this Agreement, those Holders shall notify the Company, at any time when a prospectus relating thereto is required to be delivered under the Securities Act, of the happening of any event, which as to any Holder is (i) to its respective knowledge;
(ii) solely within its respective knowledge; and (iii) solely as to matters concerning that Holder, as a result of which the prospectus included in the registration statement, then in effect, contains an untrue statement of a material fact or omits
to state any material fact necessary to make the statements therein, in light of the circumstances then existing, not misleading. 
  
 1.10 Allocation of Registration Opportunities. In any circumstance in which all of the Registrable Securities and other shares of the
Company with registration rights (the “Other Shares”) requested to be included in a registration contemplated by Section 1.3(a) cannot be so included as a result of limitations of the aggregate number of shares of Registrable Securities
and Other Shares that may be so included, the number of shares of Registrable Securities and Other Shares that may be so included shall be allocated, subject to the registration rights applicable to the Other Shares which shall control in event of a
conflict with provisions hereof, among the Holders and Other Shareholders requesting inclusion of shares pro rata on the basis of the number of shares of Registrable Securities and Other Shares held by such Holders and Other Shareholders;
provided, however, that such allocation shall not operate to reduce the aggregate number of Registrable Securities and Other Shares to be included in such registration, if any Holder or Other Shareholder does not request inclusion of
the maximum number of shares of Registrable Securities and Other Shares allocated to such Holder or Other Shareholder pursuant to the above-described procedure, then the remaining portion of such allocation shall be reallocated among those
requesting Holders and Other Shareholders whose allocations did not satisfy their requests pro rata on the basis of the number of shares of Registrable Securities and Other Shares which would be held by such Holders and Other Shareholders, assuming
conversion, and this procedure shall be repeated until all of the shares of Registrable Securities and Other Shares which may be included in the registration on behalf of the Holders and Other Shareholders have been so allocated. 
  

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 2. REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND THE INVESTORS. 
  
 2.1 Representations and Warranties of the Company. The Company
represents and warrants to the Investors as follows: 
  
 (a) The
execution, delivery and performance of this Agreement by the Company have been duly authorized by all requisite corporate action and will not violate any provision of law, any order of any court or other agency of government, the Articles of
Incorporation or Bylaws of the Company, each as amended, or any provision of any material indenture, agreement or other instrument to which it or any of its properties or assets is bound, or conflict with, result in a breach of or constitute (with
due notice or lapse of time or both) a default under any such material indenture, agreement or other instrument, or result in the creation or imposition of any lien, charge or encumbrance of any nature whatsoever upon any of the properties or assets
of the Company. 
  
 (b) This Agreement has been duly executed and
delivered by the Company and constitutes the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, subject to applicable bankruptcy, insolvency and other similar laws affecting the
enforceability of creditors’ rights generally, general equitable principles, the discretion of courts in granting equitable remedies and public policy considerations. 
  
 2.2 Representations and Warranties of the Investors. Each Investor (severally and not jointly) represents and
warrants to the Company as follows: 
  
 (a) The execution,
delivery and performance of this Agreement by the Investor will not violate any provision of law, any order of any court or any agency or government, or any provision of any material indenture or agreement or other instrument to which it or any of
its properties or assets is bound, or conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any such material indenture, agreement or other instrument, or result in the creation or imposition
of any lien, charge, or encumbrance of any nature whatsoever upon any of the properties or assets of the Investor. 
  
 (b) This Agreement has been duly executed and delivered by the Investor and constitutes the legal, valid and binding obligation of the Investor,
enforceable against the Investor in accordance with its terms, subject to applicable bankruptcy, insolvency and other similar laws affecting the enforceability of creditors’ rights generally, general equitable principles, the discretion of
courts in granting equitable remedies and public policy considerations. 
  

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 3. MISCELLANEOUS. 
  
 3.1 Delay of Registration. No Holder shall have any right to take any action to restrain, enjoin, or otherwise delay any registration as the
result of any controversy that might arise with respect to the interpretation or implementation of Section 1 hereof. 
  
 3.2 Successors and Assigns. Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be
binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto. 
  
 3.3 Entire Agreement; Amendment; Waiver. This Agreement constitutes the full and entire understanding and agreement between the parties with
regard to the subject hereof. Neither this Agreement nor any term hereof may be amended, waived, discharged or terminated, except by a written instrument signed by the Company and the Holders of at least fifty-one percent (51%) of the Registrable
Securities and any such amendment, waiver, discharge or termination shall be binding on all the Holders, but in no event shall the obligation of any Holder hereunder be materially increased, except upon the written consent of such Holder.

  
 3.4 Notices, etc. All notices and other
communications required or permitted hereunder shall be in writing and shall be mailed by United States first-class mail, postage prepaid, or delivered personally by hand or nationally recognized courier addressed (a) if to a Holder, as indicated in
the stock records of the Company or at such other address as such Holder shall have furnished to the Company in writing, or (b) if to the Company, at 1800 Abernathy Road, Suite 1800, Atlanta, Georgia 30328, Attn: Chief Financial Officer, or at such
other address as the Company shall have furnished to each Holder in writing, together with a copy to Rogers & Hardin LLP, 2700 International Tower, 229 Peachtree Street, Atlanta, Georgia 30303, Attn: Robert C. Hussle, Esq. All such notices and
other written communications shall be effective on the date of mailing or delivery. 
  
 3.5 Delays or Omissions. No delay or omission to exercise any right, power or remedy accruing to any Holder, upon any breach or default of the Company under this Agreement shall impair any such right,
power or remedy of such Holder nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default
be deemed a waiver of any other breach or default therefore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any Holder of any breach or default under this Agreement or any waiver on the part
of any Holder of any provisions or conditions of this Agreement must be made in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to
any Holder, shall be cumulative and not alternative. 
  
 3.6
Rights; Severability. Unless otherwise expressly provided herein, a Holder’s rights hereunder are several rights, not rights jointly held with any of the other Holders. In case any provision of the Agreement shall be invalid, illegal
or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
  

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 3.7 Information Confidential. Each Holder acknowledges that the information received by
them pursuant hereto may be confidential and for its use only, and it will not use such confidential information in violation of the Exchange Act or reproduce, disclose or disseminate such information to any other person (other than its employees or
agents having a need to know the contents of such information, and its attorneys), except in connection with the exercise of rights under this Agreement, unless the Company has made such information available to the public generally or such Holder
is required to disclose such information by a governmental body. 
  
 3.8 Titles and Subtitles. The titles of the paragraphs and subparagraphs of this Agreement are for convenience of reference only and are not to be considered in construing this Agreement. 
  
 3.9 Counterparts. This Agreement may be executed and delivered
(including by facsimile transmission) in any number of counterparts, and by the different parties hereto in separate counterparts, each of which when executed and delivered shall be deemed to be an original, but all of which together shall
constitute one and the same instrument. 
  
 3.10 Governing
Law; Jurisdiction. This Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Georgia without reference to Georgia’s choice of law rules and each of the parties hereto hereby
consents to personal jurisdiction in any federal or state court in the State of Georgia. 
  
 [Signature Page Follows] 
  

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 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement or have caused this
Agreement to be duly executed on its behalf by an officer or representative thereto duly authorized, all as of the date first above written. 
  

			
	I2 TELECOM INTERNATIONAL, INC.
		
	 By:
	 	  

	 	 	 Paul R. Arena

	 	 	 Chief Executive Officer

	
	INVESTOR:
	
	  

	 Allen Lyons, Manager

	 Vestal Venture Capital

	 21st Century Strategic Investment Planning, LC - GP

  

 13SigmaTel, Inc. 2003 Equity Incentive plan

  
 SIGMATEL, INC.

 2003 EQUITY INCENTIVE PLAN 
  
 TABLE OF CONTENTS 
  

							
	 	 	 	 	 	  	Page

	1.	 	Establishment, Purpose and Term of Plan	  	3
	 	 	1.1	 	Establishment	  	3
	 	 	1.2	 	Purpose	  	3
	 	 	1.3	 	Term of Plan	  	3
	2.	 	Definitions and Construction	  	3
	 	 	2.1	 	Definitions	  	3
	 	 	2.2	 	Construction	  	8
	3.	 	Administration	  	8
	 	 	3.1	 	Administration by the Committee	  	8
	 	 	3.2	 	Authority of Officers	  	8
	 	 	3.3	 	Administration with Respect to Insiders	  	8
	 	 	3.4	 	Committee Complying with Section 162(m)	  	8
	 	 	3.5	 	Powers of the Committee	  	9
	 	 	3.6	 	Option Repricing	  	10
	 	 	3.7	 	No Stock Award Acceleration	  	10
	 	 	3.8	 	Indemnification	  	10
	4.	 	Shares Subject to Plan	  	10
	 	 	4.1	 	Maximum Number of Shares Issuable	  	10
	 	 	4.2	 	Adjustments for Changes in Capital Structure	  	11
	5.	 	Eligibility and Award Limitations	  	11
	 	 	5.1	 	Persons Eligible for Awards	  	11
	 	 	5.2	 	Participation	  	11
	 	 	5.3	 	Incentive Stock Option Limitations	  	12
	 	 	5.4	 	Award Limits	  	12
	6.	 	Terms and Conditions of Options	  	13
	 	 	6.1	 	Exercise Price	  	13
	 	 	6.2	 	Exercisability and Term of Options	  	13
	 	 	6.3	 	Payment of Exercise Price	  	14
	 	 	6.4	 	Effect of Termination of Service	  	14
	 	 	6.5	 	Transferability of Options	  	14
	7.	 	Terms and Conditions of Outside Director Options	  	15
	 	 	7.1	 	Automatic Grant	  	15
	 	 	7.2	 	Exercisability and Term of Outside Director Options	  	15
	 	 	7.3	 	Effect of Change in Control on Outside Director Options	  	16
	8.	 	Terms and Conditions of Stock Appreciation Rights	  	17
	 	 	8.1	 	Types of SARs Authorized	  	17
	 	 	8.2	 	Exercise Price	  	17
	 	 	8.3	 	Exercisability and Term of SARs	  	17
	 	 	8.4	 	Exercise of SARs	  	17
	 	 	8.5	 	Deemed Exercise of SARs	  	18

  

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	 	 	 	 	  	Page

				
	 	 	8.6	 	Effect of Termination of Service	  	18
	 	 	8.7	 	Nontransferability of SARs	  	18
	9.	 	Terms and Conditions of Stock Awards	  	18
	 	 	9.1	 	Types of Stock Awards Authorized	  	18
	 	 	9.2	 	Purchase Price	  	18
	 	 	9.3	 	Purchase Period	  	18
	 	 	9.4	 	Payment of Purchase Price	  	19
	 	 	9.5	 	Vesting and Restrictions on Transfer	  	19
	 	 	9.6	 	Voting Rights; Dividends and Distributions	  	19
	 	 	9.7	 	Effect of Termination of Service	  	19
	 	 	9.8	 	Nontransferability of Stock Award Rights	  	20
	 	 	9.9	 	Restricted Stock Units	  	20
	10.	 	Terms and Conditions of Performance Awards	  	20
	 	 	10.1	 	Types of Performance Awards Authorized	  	20
	 	 	10.2	 	Initial Value of Performance Shares and Performance Units	  	20
	 	 	10.3	 	Establishment of Performance Period, Performance Goals and Performance Award Formula	  	21
	 	 	10.4	 	Measurement of Performance Goals	  	21
	 	 	10.5	 	Settlement of Performance Awards	  	22
	 	 	10.6	 	Dividend Equivalents	  	23
	 	 	10.7	 	Effect of Termination of Service	  	24
	 	 	10.8	 	Nontransferability of Performance Awards	  	24
	11.	 	Standard Forms of Award Agreement	  	24
	 	 	11.1	 	Award Agreements	  	24
	 	 	11.2	 	Authority to Vary Terms	  	24
	12.	 	Change in Control	  	24
	 	 	12.1	 	Definitions	  	24
	 	 	12.2	 	Effect of Change in Control on Options and SARs	  	25
	 	 	12.3	 	Effect of Change in Control on Stock Awards	  	25
	 	 	12.4	 	Effect of Change in Control on Performance Awards	  	25
	13.	 	Compliance with Securities Law	  	25
	14.	 	Tax Withholding	  	26
	 	 	14.1	 	Tax Withholding in General	  	26
	 	 	14.2	 	Withholding in Shares	  	26
	15.	 	Termination or Amendment of Plan	  	26
	16.	 	Miscellaneous Provisions	  	26
	 	 	16.1	 	Repurchase Rights	  	26
	 	 	16.2	 	Provision of Information	  	27
	 	 	16.3	 	Rights as Employee, Consultant or Director	  	27
	 	 	16.4	 	Rights as a Stockholder	  	27
	 	 	16.5	 	Fractional Shares	  	27
	 	 	16.6	 	Beneficiary Designation	  	27
	 	 	16.7	 	Unfunded Obligation	  	27

  

 -ii- 

  
 SIGMATEL, INC.

 2003 EQUITY INCENTIVE PLAN 
  

	1.	Establishment, Purpose and Term of Plan. 

  
 1.1 Establishment. SigmaTel, Inc., a Delaware corporation, established the SigmaTel, Inc. 2003 Equity Incentive Plan (the
“Plan”) effective as of September 18, 2003, the effective date of the initial registration by the Company of its Stock under Section 12 of the Securities Exchange Act of 1934, as amended (the
“Original Effective Date”). The Board of Directors of the Company amended and restated the Plan as of February 22, 2005 subject to the approval by Company stockholders, which approval was received
on April 21, 2005. The Board of Directors of the Company also amended and restated the Plan, effective as of April 19, 2005, without the need for stockholder approval, to implement certain restrictions on the ability of the Company to grant certain
awards under the Plan. 
  
 1.2 Purpose. The purpose of the
Plan is to advance the interests of the Participating Company Group and its stockholders by providing an incentive to attract, retain and reward persons performing services for the Participating Company Group and by motivating such persons to
contribute to the growth and profitability of the Participating Company Group. The Plan seeks to achieve this purpose by providing for Awards in the form of Options, Stock Appreciation Rights, Stock Purchase Rights, Stock Bonuses, Restricted Stock
Units, Performance Shares and Performance Units. 
  
 1.3 Term
of Plan. The Plan shall continue in effect until the earlier of its termination by the Board or the date on which all of the shares of Stock available for issuance under the Plan have been issued and all restrictions on such shares under the
terms of the Plan and the agreements evidencing Awards granted under the Plan have lapsed. However, all Incentive Stock Options shall be granted, if at all, within ten (10) years from the earlier of the date the Plan is adopted by the Board or the
date the Plan is duly approved by the stockholders of the Company. 
  

	2.	Definitions and Construction. 

  
 2.1 Definitions. Whenever used herein, the following terms shall have their respective meanings set forth below: 
  
 (a)
“Affiliate” means (i) an entity, other than a Parent Corporation, that directly, or indirectly through one or more intermediary entities, controls the Company or (ii) an entity, other than a
Subsidiary Corporation, that is controlled by the Company directly, or indirectly through one or more intermediary entities. For this purpose, the term “control” (including the term “controlled by”) means the possession, direct
or indirect, of the power to direct or cause the direction of the management and policies of the relevant entity, whether through the ownership of voting securities, by contract or otherwise; or shall have such other meaning assigned such term for
the purposes of registration on Form S-8 under the Securities Act. 
  

 3 

 (b) “Award” means any Option, SAR,
Stock Purchase Right, Stock Bonus, Restricted Stock Unit, Performance Share or Performance Unit granted under the Plan. 
  
 (c) “Award Agreement” means a written agreement between the Company and a Participant
setting forth the terms, conditions and restrictions of the Award granted to the Participant. An Award Agreement may be an “Option Agreement,” an “SAR Agreement,” a “Stock Purchase Agreement,” a “Stock Bonus
Agreement,” a “Restricted Stock Unit Agreement,” a “Performance Share Agreement” or a “Performance Unit Agreement.” 
  
 (d) “Board” means the Board of Directors of the Company. 
  
 (e)
“Code” means the Internal Revenue Code of 1986, as amended, and any applicable regulations promulgated thereunder. 
  
 (f) “Committee” means the Compensation Committee
or other committee of the Board duly appointed to administer the Plan and having such powers as shall be specified by the Board. If no committee of the Board has been appointed to administer the Plan, the Board shall exercise all of the powers of
the Committee granted herein, and, in any event, the Board may in its discretion exercise any or all of such powers. 
  
 (g) “Company” means SigmaTel, Inc., a Delaware corporation, or any successor
corporation thereto. 
  
 (h)
“Consultant” means a person engaged to provide consulting or advisory services (other than as an Employee or a member of the Board) to a Participating Company, provided that the identity of
such person, the nature of such services or the entity to which such services are provided would not preclude the Company from offering or selling securities to such person pursuant to the Plan in reliance on registration on a Form S-8 Registration
Statement under the Securities Act. 
  
 (i)
“Director” means a member of the Board or of the board of directors of any other Participating Company. 
  
 (j) “Disability” means the permanent and total
disability of the Participant, within the meaning of Section 22(e)(3) of the Code. 
  
 (k) “Dividend Equivalent” means a credit, made at the discretion of the Committee or
as otherwise provided by the Plan, to the account of a Participant in an amount equal to the cash dividends paid on one share of Stock for each share of Stock represented by an Award held by such Participant. 
  
 (l)
“Employee” means any person treated as an employee (including an Officer or a member of the Board who is also treated as an employee) in the records of a Participating Company and, with
respect to any Incentive Stock Option granted to such person, who is an employee for purposes of Section 422 of the Code; provided, however, that neither service as a member of the Board nor payment of a director’s fee shall be sufficient to
constitute employment for purposes of the Plan. 
  

 4 

 (m) “Exchange Act” means the
Securities Exchange Act of 1934, as amended. 
  
 (n) “Fair Market Value” means, as of any date, the value of a share of Stock or other property as determined by the Committee, in its discretion, or by the Company, in its
discretion, if such determination is expressly allocated to the Company herein, subject to the following: 
  
 (i) If, on such date, the Stock is listed on a national or regional securities exchange or market system, the Fair Market Value of a share
of Stock shall be the closing price of a share of Stock (or the mean of the closing bid and asked prices of a share of Stock if the Stock is so quoted instead) as quoted on the Nasdaq National Market, The Nasdaq SmallCap Market or such other
national or regional securities exchange or market system constituting the primary market for the Stock, as reported in The Wall Street Journal or such other source as the Company deems reliable. If the relevant date does not fall on a day on
which the Stock has traded on such securities exchange or market system, the date on which the Fair Market Value shall be established shall be the last day on which the Stock was so traded prior to the relevant date, or such other appropriate day as
shall be determined by the Committee, in its discretion. 
  
 (ii) If, on such date, the Stock is not listed on a national or regional securities exchange or market system, the Fair Market Value of a share of Stock shall be as determined by the Committee in good faith without
regard to any restriction other than a restriction which, by its terms, will never lapse. 
  
 (o) “Incentive Stock Option” means an Option intended to be (as set forth in the Award
Agreement) and which qualifies as an incentive stock option within the meaning of Section 422(b) of the Code. 
  
 (p) “Insider” means an Officer, a Director or any other person whose transactions in
Stock are subject to Section 16 of the Exchange Act. 
  
 (q) “Nonstatutory Stock Option” means an Option not intended to be (as set forth in the Award Agreement) an incentive stock option within the meaning of Section 422(b) of the Code.

  
 (r)
“Officer” means any person designated by the Board as an officer of the Company. 
  
 (s) “Option” means the right to purchase Stock at a stated price for a
specified period of time granted to a participant pursuant to Section 6 of the Plan or to an Outside Director pursuant to Section 7 of the Plan. An Option may be either an Incentive Stock Option or a Nonstatutory Stock Option. 
  
 (t) “Outside
Director” means a Director who is not an Employee of the Company or of any Parent Corporation or Subsidiary Corporation. 
  

 5 

 (u) “Parent Corporation” means
any present or future “parent corporation” of the Company, as defined in Section 424(e) of the Code. 
  
 (v) “Participant” means any eligible person who has been granted one or more Awards.

  
 (w) “Participating
Company” means the Company or any Parent Corporation, Subsidiary Corporation or Affiliate. 
  
 (x) “Participating Company Group” means, at any point in time, all corporations
collectively which are then Participating Companies. 
  
 (y) “Performance Award” means an Award of Performance Shares or Performance Units. 
  
 (z) “Performance Award Formula” means, for any Performance Award, a formula or table
established by the Committee pursuant to Section 10.3 of the Plan which provides the basis for computing the value of a Performance Award at one or more threshold levels of attainment of the applicable Performance Goal(s) measured as of the end of
the applicable Performance Period. 
  
 (aa)
“Performance Goal” means a performance goal established by the Committee pursuant to Section 10.3 of the Plan. 
  
 (bb) “Performance Period” means a period established by
the Committee pursuant to Section 10.3 of the Plan at the end of which one or more Performance Goals are to be measured. 
  
 (cc) “Performance Share” means a bookkeeping entry representing a right granted to a
Participant pursuant to Section 10 of the Plan to receive a payment equal to the value of a Performance Share, as determined by the Committee, based on performance. 
  
 (dd) “Performance Unit” means a bookkeeping entry
representing a right granted to a Participant pursuant to Section 10 of the Plan to receive a payment equal to the value of a Performance Unit, as determined by the Committee, based upon performance. 
  
 (ee) “Prior Plan
Options” means any option granted pursuant to the Company’s 1995 Stock Option/Stock Issuance Plan which is outstanding on or after the date on which the Board adopts the Plan or which is granted thereafter and prior
to the Original Effective Date.  
  
 (ff)
“Restriction Period” means the period established in accordance with Section 9.5 of the Plan during which shares subject to a Stock Award are subject to Vesting Conditions. 
  
 (gg) “Restricted Stock
Unit” or “Stock Unit” means a bookkeeping entry representing a right granted to a Participant pursuant to Section 9 of the Plan to receive the value 

  

 6 

 
associated with a share of Stock on a date determined in accordance with the provisions of the Plan and the Participant’s Award Agreement. 

 
 (hh) “Rule
16b-3” means Rule 16b-3 under the Exchange Act, as amended from time to time, or any successor rule or regulation. 
  
 (ii) “SAR” or “Stock Appreciation
Right” means a bookkeeping entry representing, for each share of Stock subject to such SAR, a right granted to a Participant pursuant to Section 8 of the Plan to receive payment of an amount equal to the excess, if any, of
the Fair Market Value of a share of Stock on the date of exercise of the SAR over the exercise price. 
  
 (jj) “Section 162(m)” means Section 162(m) of the Code. 
  
 (kk) “Securities
Act” means the Securities Act of 1933, as amended. 
  
 (ll) “Service” means a Participant’s employment or service with the
Participating Company Group as an Employee, a Director or a Consultant, whichever such capacity the Participant held on the date of grant of an Award or, if later, the date on which the Participant commenced Service. Unless otherwise determined by
the Board, a Participant’s Service shall be deemed to have terminated if the Participant ceases to render service to the Participating Company Group in such initial capacity. However, a Participant’s Service shall not be deemed to have
terminated merely because of a change in the Participating Company for which the Participant renders such Service in such initial capacity, provided that there is no interruption or termination of the Participant’s Service. Furthermore, a
Participant’s Service shall not be deemed to have terminated if the Participant takes any bona fide leave of absence approved by the Company of ninety (90) days or less. In the event of a leave in excess of ninety (90) days, the
Participant’s Service shall be deemed to terminate on the ninety-first (91st) day of the leave unless the Participant’s right to return to Service is guaranteed by statute or contract. Notwithstanding the foregoing, unless otherwise
designated by the Company or required by law, a leave of absence shall not be treated as Service for purposes of determining vesting under the Participant’s Award Agreement. A Participant’s Service shall be deemed to have terminated either
upon an actual termination of Service or upon the corporation for which the Participant performs Service ceasing to be a Participating Company. Subject to the foregoing, the Company, in its discretion, shall determine whether the Participant’s
Service has terminated and the effective date of such termination. 
  
 (mm) “Stock” means the common stock of the Company, as adjusted from time to time in accordance with Section 4.2 of the Plan. 
  
 (nn) “Stock
Award” means an Award of a Stock Bonus, Restricted Stock Unit or a Stock Purchase Right. 
  
 (oo) “Stock Bonus” means Stock granted to a Participant pursuant to Section 9 of the
Plan. 
  
 (pp) “Stock
Purchase Right” means a right to purchase Stock granted to a Participant pursuant to Section 9 of the Plan. 
  

 7 

 (qq) “Subsidiary Corporation”
means any present or future “subsidiary corporation” of the Company, as defined in Section 424(f) of the Code. 
  
 (rr) “Ten Percent Owner” means a Participant who, at the time an Option is granted to
the Participant, owns stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of a Participating Company (other than an Affiliate) within the meaning of Section 422(b)(6) of the Code. 
  
 (ss) “Vesting
Conditions” mean those conditions established in accordance with Section 9.5 of the Plan prior to the satisfaction of which shares subject to a Stock Award remain subject to forfeiture or a repurchase option in favor of
the Company. 
  
 2.2 Construction. Captions and titles
contained herein are for convenience only and shall not affect the meaning or interpretation of any provision of the Plan. Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the
singular. Use of the term “or” is not intended to be exclusive, unless the context clearly requires otherwise. 
  

	3.	Administration. 

  
 3.1 Administration by the Committee. The Plan shall be administered by the Committee. All questions of interpretation of the Plan or of any Award
shall be determined by the Committee, and such determinations shall be final and binding upon all persons having an interest in the Plan or such Award. 
  
 3.2 Authority of Officers. Any Officer shall have the authority to act on behalf of the Company with respect to any matter, right, obligation,
determination or election which is the responsibility of or which is allocated to the Company herein, provided the Officer has apparent authority with respect to such matter, right, obligation, determination or election. The Board may, in its
discretion, delegate to a committee comprised of one or more Officers the authority to grant one or more Options, without further approval of the Board or the Committee, to any Employee, other than a person who, at the time of such grant, is an
Insider; provided, however, that (i) such Awards shall not be granted for shares in excess of the maximum aggregate number of shares of Stock authorized for issuance pursuant to Section 4.1, (ii) the exercise price per share of each Option shall be
not less than the Fair Market Value per share of the Stock on the effective date of grant (or, if the Stock has not traded on such date, on the last day preceding the effective date of grant on which the Stock was traded), and (iii) each such Award
shall be subject to the terms and conditions of the appropriate standard form of Award Agreement approved by the Board or the Committee and shall conform to the provisions of the Plan and such other guidelines as shall be established from time to
time by the Board or the Committee. 
  
 3.3 Administration with
Respect to Insiders. With respect to participation by Insiders in the Plan, at any time that any class of equity security of the Company is registered pursuant to Section 12 of the Exchange Act, the Plan shall be administered in compliance with
the requirements, if any, of Rule 16b-3. 
  
 3.4 Committee
Complying with Section 162(m). If the Company is a “publicly held corporation” within the meaning of Section 162(m), the Board may establish a Committee 

  

 8 

 
of “outside directors” within the meaning of Section 162(m) to approve the grant of any Award which might reasonably be anticipated to result in
the payment of employee remuneration that would otherwise exceed the limit on employee remuneration deductible for income tax purposes pursuant to Section 162(m). 
  
 3.5 Powers of the Committee. In addition to any other powers set forth in the Plan and subject to the provisions of
the Plan, the Committee shall have the full and final power and authority, in its discretion: 
  
 (a) to determine the persons to whom, and the time or times at which, Awards shall be granted and the number of shares of Stock or units
to be subject to each Award; 
  
 (b) to determine
the type of Award granted and to designate Options as Incentive Stock Options or Nonstatutory Stock Options; 
  
 (c) to determine the Fair Market Value of shares of Stock or other property; 
  
 (d) to determine the terms, conditions and restrictions
applicable to each Award (which need not be identical) and any shares acquired pursuant thereto, including, without limitation, (i) the exercise or purchase price of shares purchased pursuant to any Award, (ii) the method of payment for shares
purchased pursuant to any Award, (iii) the method for satisfaction of any tax withholding obligation arising in connection with Award, including by the withholding or delivery of shares of Stock, (iv) the timing, terms and conditions of the
exercisability or vesting of any Award or any shares acquired pursuant thereto, (v) the Performance Award Formula and Performance Goals applicable to any Award and the extent to which such Performance Goals have been attained, (vi) the time of the
expiration of any Award, (vii) the effect of the Participant’s termination of Service on any of the foregoing, and (viii) all other terms, conditions and restrictions applicable to any Award or shares acquired pursuant thereto not inconsistent
with the terms of the Plan; 
  
 (e) to determine
whether an Award of SARs, Performance Shares or Performance Units will be settled in shares of Stock, cash, or in any combination thereof; 
  
 (f) to approve one or more forms of Award Agreement; 
  
 (g) to amend, modify, extend, cancel or renew any Award or to waive any restrictions or conditions
applicable to any Award or any shares acquired pursuant thereto; 
  
 (h) to accelerate, continue, extend or defer the exercisability or vesting of any Award or any shares acquired pursuant thereto, including with respect to the period following a Participant’s termination of
Service; 
  
 (i) to prescribe, amend or rescind
rules, guidelines and policies relating to the plan, or to adopt sub-plans or supplements to, or alternative versions of, the Plan, including, without limitation, as the Committee deems necessary or desirable to comply with the laws of or to
accommodate the laws, regulations, tax or accounting effectiveness, accounting principles or custom of, foreign jurisdictions whose citizens may be granted Awards; and 
  

 9 

 (j) to correct any defect, supply any omission or reconcile any inconsistency in the Plan
or any Award Agreement and to make all other determinations and take such other actions with respect to the Plan or any Award as the Committee may deem advisable to the extent not inconsistent with the provisions of the Plan or applicable law.

  
 3.6 Option Repricing. Without the affirmative vote of
holders of a majority of the shares of Stock cast in person or by proxy at a meeting of the stockholders of the Company at which a quorum representing a majority of all outstanding shares of Stock is present or represented by proxy, the Board shall
not approve a program providing for either (a) the cancellation of outstanding Options and the grant in substitution therefore of new Options having a lower exercise price or (b) the amendment of outstanding Options to reduce the exercise price
thereof. This paragraph shall not be construed to apply to “issuing or assuming a stock option in a transaction to which section 424(a) applies,” within the meaning of Section 424 of the Code. 
  
 3.7 No Stock Award Acceleration. Notwithstanding any provision of the
Plan to the contrary, no Stock Award may be granted which provides, or subsequently amended to provide, for (i) any acceleration of vesting for any reason other than upon a Change in Control or after the Participant’s death or Disability and
(ii) vesting of one hundred percent (100%) of any such Stock Award prior to the passage of three (3) years of Service (unless such Stock Award will vest in accordance with the satisfaction of any Performance Measure set forth in Section 10.3).

  
 3.8 Indemnification. In addition to such other rights
of indemnification as they may have as members of the Board or the Committee or as officers or employees of the Participating Company Group, members of the Board or the Committee and any officers or employees of the Participating Company Group to
whom authority to act for the Board, the Committee or the Company is delegated shall be indemnified by the Company against all 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 or failure to act under or in connection with the Plan, or any right granted hereunder, 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 such action, suit or proceeding, except in relation to
matters as to which it shall be adjudged in such action, suit or proceeding that such person is liable for gross negligence, bad faith or intentional misconduct in duties; provided, however, that within sixty (60) days after the institution of such
action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity at its own expense to handle and defend the same. 
  

	4.	Shares Subject to Plan. 

  
 4.1 Maximum Number of Shares Issuable. Subject to adjustment as provided in Section 4.2, the maximum aggregate number of shares of Stock that may
be issued under the Plan shall be Nine Million Three Hundred and Sixty Six Thousand Seven Hundred and Forty Seven (9,366,747) (determined after taking into account the one-for-three reverse stock split to be completed by the Company prior to the
initial registration by the Company of its Stock under Section 12 of the Exchange Act and after approval by Company shareholders of this amended and restated Plan), reduced at any time by the number of shares subject to the Prior Plan Options.
 

  

 10 

 
Such shares shall consist of authorized but unissued or reacquired shares of Stock or any combination thereof. If any outstanding Award, including any Prior
Plan Options, for any reason expires or is terminated or canceled without having been exercised or settled in full, or if shares of Stock acquired pursuant to an Award subject to forfeiture or repurchase, including any Prior Plan Options, are
forfeited or repurchased by the Company, the shares of Stock allocable to the terminated portion of such Award, including any Prior Plan Options, or such forfeited or repurchases shares of Stock shall again be available for issuance under the Plan.
Shares of Stock shall not be deemed to have been issued pursuant to the Plan (i) with respect to any portion of an Award that is settled in cash or (ii) to the extent such shares are withheld in satisfaction of tax withholding obligations pursuant
to Section 14.2. Upon payment in shares of Stock pursuant to the exercise of an SAR, the number of shares available for issuance under the Plan shall be reduced only by the number of shares actually issued in such payment. If the exercise price of
an Option is paid by tender to the Company, or attestation to the ownership, of shares of Stock owned by the Participant, the number of shares available for issuance under the Plan shall be reduced by the gross number of shares for which the Option
is exercised. 
  
 4.2 Adjustments for Changes in Capital
Structure. In the event of any change in the Stock through merger, consolidation, reorganization, reincorporation, recapitalization, reclassification, stock dividend, stock split, reverse stock split, split-up, split-off, spin-off, combination
of shares, exchange of shares or similar change in the capital structure of the Company, or in the event of payment of a dividend or distribution to the stockholders of the Company in a form other than Stock (excepting normal cash dividends) that
has a material effect on the Fair Market Value of shares of Stock, appropriate adjustments shall be made in the number and class of shares subject to the Plan, in the ISO Share Limit set forth in Section 5.3(b), the Award limits set forth in Section
5.4 and to any outstanding Awards, and in the exercise or purchase price per share under any outstanding Award. Notwithstanding the foregoing, any fractional share resulting from an adjustment pursuant to this Section 4.2 shall be rounded down to
the nearest whole number, and in no event may the exercise or purchase price under any Award be decreased to an amount less than the par value, if any, of the stock subject to such Award. The adjustments determined by the Committee pursuant to this
Section 4.2 shall be final, binding and conclusive. 
  

	5.	Eligibility and Award Limitations. 

  
 5.1 Persons Eligible for Awards. Awards may be granted only to Employees, Directors and Consultants. For purposes of the foregoing sentence,
“Employees,” “Consultants,” and “Directors” shall include prospective Employees, prospective Consultants and prospective Directors to whom Awards are granted in connection with written offers of an employment or other
service relationship with the Participating Company Group; provided, however, that no Stock subject to any such Award shall vest, become exercisable or be issued prior to the date on which such person commences Service. 
  
 5.2 Participation. Awards are granted solely at the discretion of the
Committee. Eligible persons may be granted more than one (1) Award. However, eligibility in accordance with this Section shall not entitle any person to be granted an Award, or, having been granted an Award, to be granted an additional Award.

  

 11 

 5.3 Incentive Stock Option Limitations. 
  
 (a) Persons Eligible. An Incentive Stock
Option may be granted only to a person who, on the effective date of grant, is an Employee of the Company, a Parent Corporation or a Subsidiary Corporation (each being an “ISO-Qualifying
Corporation”). Any person who is not an Employee of an ISO-Qualifying Corporation on the effective date of the grant of an Option to such person may be granted only a Nonstatutory Stock Option. An Incentive Stock Option
granted to a prospective Employee upon the condition that such person become an Employee of an ISO-Qualifying Corporation shall be deemed granted effective on the date such person commences Service with an ISO-Qualifying Corporation, with an
exercise price determined as of such date in accordance with Section 6.1. 
  
 (b) ISO Share Limit. Subject to adjustment as provided in Section 4.2, in no event shall more than Nine Million Three Hundred and Sixty Six Thousand Seven Hundred and Forty Seven (9,366,747) shares of
Stock be available for issuance pursuant to the exercise of Incentive Stock Options granted under the Plan or the Company’s 1995 Stock Option/Stock Issuance Plan (the “ISO Share Limit”).

  
 (c) Fair Market Value
Limitation. To the extent that options designated as Incentive Stock Options (granted under all stock option plans of the Participating Company Group, including the Plan) become exercisable by a Participant for the first time during any
calendar year for stock having a Fair Market Value greater than One Hundred Thousand Dollars ($100,000), the portion of such options which exceeds such amount shall be treated as Nonstatutory Stock Options. For purposes of this Section, options
designated as Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair Market Value of stock shall be determined as of the time the option with respect to such stock is granted. If the Code is amended
to provide for a different limitation from that set forth in this Section, such different limitation shall be deemed incorporated herein effective as of the date and with respect to such Options as required or permitted by such amendment to the
Code. If an Option is treated as an Incentive Stock Option in part and as a Nonstatutory Stock Option in part by reason of the limitation set forth in this Section, the Participant may designate which portion of such Option the Participant is
exercising. In the absence of such designation, the Participant shall be deemed to have exercised the Incentive Stock Option portion of the Option first. Upon exercise, each portion shall be separately identified. 
  
 5.4 Award Limits. 
  
 (a) Aggregate Limit on Stock Awards and Performance
Awards. Subject to adjustment as provided in Section 4.2, in no event shall more than Five Hundred Thousand shares of Stock in the aggregate be issued under the Plan pursuant to the exercise or settlement of Stock Awards and Performance
Awards. 
  
 (b) Section 162(m) Award
Limits. The following limits shall apply to the grant of any Award if, at the time of grant, the Company is a “publicly held corporation” within the meaning of Section 162(m). 
  

 12 

 (i) Options and SARs. Subject to adjustment as provided in Section 4.2, no
Employee shall be granted within any fiscal year of the Company one or more Options or Freestanding SARs which in the aggregate are for more than One Million (1,000,000) shares of Stock. An Option which is canceled (or a Freestanding SAR as to which
the exercise price is reduced to reflect a reduction in the Fair Market Value of the Stock) in the same fiscal year of the Company in which it was granted shall continue to be counted against such limit for such fiscal year. 
  
 (ii) Stock Awards. Subject to adjustment as provided
in Section 4.2, no Employee shall be granted within any fiscal year of the Company one or more Stock Awards, subject to Vesting Conditions based on the attainment of Performance Goals, for more than One Hundred Thousand (100,000) shares of Stock.

  
 (iii) Performance Awards. Subject to
adjustment as provided in Section 4.2, no Employee shall be granted (A) Performance Shares which could result in such Employee receiving more than One Hundred Thousand (100,000) shares of Stock for each full fiscal year of the Company contained in
the Performance Period for such Award, or (B) Performance Units which could result in such Employee receiving more than One Million dollars ($1,000,000) for each full fiscal year of the Company contained in the Performance Period for such Award. No
Participant may be granted more than one Performance Award for the same Performance Period. 
  

	6.	Terms and Conditions of Options.  

  
 Options shall be evidenced by Award Agreements specifying the number of shares of Stock covered thereby, in such form as the Committee shall from time to
time establish. No Option or purported Option shall be a valid and binding obligation of the Company unless evidenced by a fully executed Award Agreement. Award Agreements evidencing Options may incorporate all or any of the terms of the Plan by
reference and shall comply with and be subject to the following terms and conditions: 
  
 6.1 Exercise Price. The exercise price for each Option shall be established in the discretion of the Committee; provided, however, that (a) the exercise price per share shall be not less than the Fair Market
Value of a share of Stock on the effective date of grant of the Option and (b) no Incentive Stock Option granted to a Ten Percent Owner shall have an exercise price per share less than one hundred ten percent (110%) of the Fair Market Value of a
share of Stock on the effective date of grant of the Option. Notwithstanding the foregoing, an Option (whether an Incentive Stock Option or a Nonstatutory Stock Option) may be granted with an exercise price lower than the minimum exercise price set
forth above if such Option is granted pursuant to an assumption or substitution for another option in a manner qualifying under the provisions of Section 424(a) of the Code. 
  
 6.2 Exercisability and Term of Options. Options shall be exercisable at such time or times, or upon such event or
events, and subject to such terms, conditions, performance criteria and restrictions as shall be determined by the Committee and set forth in the Award Agreement evidencing such Option; provided, however, that (a) for Options granted after approval
of this amended and restated Plan by Company stockholders, no Option shall be 

  

 13 

 
exercisable after the expiration of seven (7) years after the effective date of grant of such Option, and (b) no Option granted to a prospective Employee or
prospective Consultant may become exercisable prior to the date on which such person commences Service. Subject to the foregoing, unless otherwise specified by the Committee in the grant of an Option, any Option granted hereunder shall terminate
seven (7) years after the effective date of grant of the Option, unless earlier terminated in accordance with its provisions. 
  
 6.3 Payment of Exercise Price.  
  
 (a) Forms of Consideration Authorized. Except as otherwise provided below, payment of the exercise price for the number of
shares of Stock being purchased pursuant to any Option shall be made (i) in cash, by check or cash equivalent, (ii) by tender to the Company, or attestation to the ownership, of shares of Stock owned by the Participant having a Fair Market Value not
less than the exercise price, (iii) by delivery of a properly executed notice of exercise together with irrevocable instructions to a broker providing for the assignment to the Company of the proceeds of a sale or loan with respect to some or all of
the shares being acquired upon the exercise of the Option (including, without limitation, through an exercise complying with the provisions of Regulation T as promulgated from time to time by the Board of Governors of the Federal Reserve System) (a
“Cashless Exercise”), (iv) by such other consideration as may be approved by the Committee from time to time to the extent permitted by applicable law, or (v) by any combination thereof. The
Committee may at any time or from time to time grant Options which do not permit all of the foregoing forms of consideration to be used in payment of the exercise price or which otherwise restrict one or more forms of consideration. 
  
 (b) Limitations on Forms of Consideration. 
  
 (i) Tender of Stock. Notwithstanding the foregoing,
an Option may not be exercised by tender to the Company, or attestation to the ownership, of shares of Stock to the extent such tender or attestation would constitute a violation of the provisions of any law, regulation or agreement restricting the
redemption of the Company’s stock. Unless otherwise provided by the Committee, an Option may not be exercised by tender to the Company, or attestation to the ownership, of shares of Stock unless such shares either have been owned by the
Participant for more than six (6) months (and not used for another Option exercise by attestation during such period) or were not acquired, directly or indirectly, from the Company. 
  
 (ii) Cashless Exercise. The Company reserves, at any and all times, the right, in the Company’s
sole and absolute discretion, to establish, decline to approve or terminate any program or procedures for the exercise of Options by means of a Cashless Exercise. 
  
 6.4 Effect of Termination of Service. An Option shall be exercisable after a Participant’s termination of
Service to such extent and during such period as determined by the Committee, in its discretion, and set forth in the Award Agreement evidencing such Option. 
  
 6.5 Transferability of Options. During the lifetime of the Participant, an Option shall be exercisable only by the Participant or the
Participant’s guardian or legal representative. No Option shall be assignable or transferable by the Participant, except by will or by the laws of 

  

 14 

 
descent and distribution. Notwithstanding the foregoing, to the extent permitted by the Committee, in its discretion, and set forth in the Award Agreement
evidencing such Option, an Option shall be assignable or transferable subject to the applicable limitations, if any, described in the General Instructions to Form S-8 Registration Statement under the Securities Act. 
  

	7.	Terms and Conditions of Outside Director Options.  

  
 Outside Director Options shall be evidenced by Award Agreements specifying the number of shares of Stock covered thereby, in such form as the Board shall
from time to time establish. Outside Director Award Agreements may incorporate all or any of the terms of the Plan by reference and shall comply with and be subject to the terms and conditions of Section 6 to the extent no inconsistent with this
Section and the following terms and conditions: 
  
 7.1
Automatic Grant. Subject to the execution by an Outside Director of an appropriate Award Agreement, Options shall be granted automatically and without further action of the Board, as follows: 
  
 (a) Initial Option. Each person who first
becomes an Outside Director after the Original Effective Date shall be granted on the date such person first becomes an Outside Director an Option to purchase Thirty Thousand (30,000) shares of Stock (an “Initial
Option”) (determined after taking into account the one-for-three reverse stock split to be completed by the Company prior to the initial registration by the Company of its Stock under Section 12 of the Exchange Act).
 
  
 (b) Annual Option. Each
Outside Director shall be granted on the date of each annual meeting of the stockholders of the Company which occurs on or after the Original Effective Date (an “Annual Meeting”) immediately
following which such person remains an Outside Director an Option to purchase Ten Thousand (10,000) shares of Stock (an “Annual Option”) (determined after taking into account the one-for-three
reverse stock split to be completed by the Company prior to the initial registration by the Company of its Stock under Section 12 of the Exchange Act); provided, however, that an Outside Director granted an Initial Option on, or within a period of
six (6) months prior to, the date of an Annual Meeting shall not be granted an Annual Option pursuant to this Section with respect to the same Annual Meeting. 
  

(c) Right to Decline Outside Director Option. Notwithstanding the foregoing, any person may elect not to receive an
Outside Director Option by delivering written notice of such election to the Board no later than the day prior to the date such Option would otherwise be granted. A person so declining an Outside Director Option shall receive no payment or other
consideration in lieu of such declined Outside Director Option. A person who has declined an Outside Director Option may revoke such election by delivering written notice of such revocation to the Board no later than the day prior to the date such
Outside Director Option would be granted pursuant to Section 7.1(a) or (b), as the case may be. 
  
 7.2 Exercisability and Term of Outside Director Options. Each Outside Director Option shall vest and become exercisable as set forth below and
shall, for such Options granted after approval of this amended and restated Plan by Company stockholders, terminate and cease to be exercisable on the seventh (7th) anniversary of the date of grant of the Outside Direct 

  

 15 

 
Option, unless earlier terminated in accordance with the terms of the Plan or the Award Agreement evidencing such Outside Director Option. 
  
 (a) Initial Options. Except as otherwise
provided in the Plan or in the Award Agreement evidencing such Outside Director Option, each Initial Option shall vest and become exercisable in four (4) substantially equal installments on each of the first four (4) anniversaries of the date of
grant of the Initial Option, provided that the Outside Director’s Service has not terminated prior to the relevant date. 
  
 (b) Annual Options. Except as otherwise provided in the Plan or in the Award Agreement evidencing such Outside Director
Option, each Annual Option shall vest and become exercisable in four (4) substantially equal installments on each of the first four (4) anniversaries of the date of grant of the Annual Option, provided that the Outside Director’s Service has
not terminated prior to the relevant date. 
  
 7.3 Effect of
Change in Control on Outside Director Options. In the event of a Change in Control, as defined in Section 12.1, any unexercisable or unvested portions of outstanding Outside Director Options and any shares acquired upon the exercise thereof held
by Outside Directors whose Service has not terminated prior to such date shall be immediately exercisable and vested in full as of the date ten (10) days prior to the date of the Change in Control. The exercise or vesting of any Outside Director
Option and any shares acquired upon the exercise thereof that was permissible solely by reason of this Section 7.3 shall be conditioned upon the consummation of the Change in Control. In addition, the surviving, continuing, successor, or purchasing
corporation or parent corporation thereof, as the case may be (the “Acquiring Corporation”), may either assume the Company’s rights and obligations under outstanding Outside Director Options
or substitute for outstanding Options substantially equivalent options for the Acquiring Corporation’s stock. Any Outside Director Options which are neither assumed or substituted for by the Acquiring Corporation in connection with the Change
in Control nor exercised as of the date of the Change in Control shall terminate and cease to be outstanding effective as of the date of the Change in Control. Notwithstanding the foregoing, if the corporation the stock of which is subject to the
outstanding Outside Director Options immediately prior to an Ownership Change Event described in Section 12.1(a)(i) constituting a Change in Control is the surviving or continuing corporation and immediately after such Ownership Change Event less
than fifty percent (50%) of the total combined voting power of its voting stock is held by another corporation or by other corporations that are members of an affiliated group within the meaning of Section 1504(a) of the Code without regard to the
provisions of Section 1504(b) of the Code, the outstanding Outside Director Options shall not terminate. 
  

 16 

	8.	Terms and Conditions of Stock Appreciation Rights.  

  
 SARs shall be evidenced by Award Agreements specifying the number of shares of Stock subject to the Award, in such form as the Committee
shall from time to time establish. No SAR or purported SAR shall be a valid and binding obligation of the Company unless evidenced by a fully executed Award Agreement. Award Agreements evidencing SARs may incorporate all or any of the terms of the
Plan by reference and shall comply with and be subject to the following terms and conditions: 
  
 8.1 Types of SARs Authorized. SARs may be granted in tandem with all or any portion of a related Option (a “Tandem SAR”) or may be granted independently of
any Option (a “Freestanding SAR”). A Tandem SAR may be granted either concurrently with the grant of the related Option or at any time thereafter prior to the complete exercise, termination,
expiration or cancellation of such related Option. 
  
 8.2
Exercise Price. The exercise price for each SAR shall be established in the discretion of the Committee; provided, however, that (a) the exercise price per share subject to a Tandem SAR shall be the exercise price per share under the related
Option and (b) the exercise price per share subject to a Freestanding SAR shall be not less than the Fair Market Value of a share of Stock on the effective date of grant of the SAR. 
  
 8.3 Exercisability and Term of SARs.  
  
 (a) Tandem SARs. Tandem SARs shall be exercisable only at the time and to the extent that the
related Option is exercisable, subject to such provisions as the Committee may specify where the Tandem SAR is granted with respect to less than the full number of shares of Stock subject to the related Option. The Committee may, in its discretion,
provide in any Award Agreement evidencing a Tandem SAR that such SAR may not be exercised without the advance approval of the Company and, if such approval is not given, then the Option shall nevertheless remain exercisable in accordance with its
terms. A Tandem SAR shall terminate and cease to be exercisable no later than the date on which the related Option expires or is terminated or canceled. Upon the exercise of a Tandem SAR with respect to some or all of the shares subject to such SAR,
the related Option shall be canceled automatically as to the number of shares with respect to which the Tandem SAR was exercised. Upon the exercise of an Option related to a Tandem SAR as to some or all of the shares subject to such Option, the
related Tandem SAR shall be canceled automatically as to the number of shares with respect to which the related Option was exercised. 
  
 (b) Freestanding SARs. Freestanding SARs shall be exercisable at such time or times, or upon such event or events, and
subject to such terms, conditions, performance criteria and restrictions as shall be determined by the Committee and set forth in the Award Agreement evidencing such SAR; provided, however, that no Freestanding SAR shall be exercisable after the
expiration of ten (10) years after the effective date of grant of such SAR. 
  
 8.4 Exercise of SARs. Upon the exercise (or deemed exercise pursuant to Section 8.5) of a SAR, the Participant (or the Participant’s legal representative or other person who acquired the right to exercise
the SAR by reason of the Participant’s death) shall be entitled to receive payment of an amount for each share with respect to which the SAR is exercised equal to the excess, if any, of the Fair Market Value of a share of Stock on the date of
exercise of the SAR over the exercise price. Payment of such amount shall be made in cash, shares of Stock, or any combination thereof as determined by the Committee. Unless otherwise provided in the Award Agreement evidencing such SAR, payment
shall be made in a lump sum as soon as practicable following the date of exercise of the SAR. The Award Agreement evidencing any SAR may provide for deferred payment in a lump sum or in installments. When payment is to be made in shares of Stock,
the number of shares to be issued shall be determined on the basis of the Fair Market Value of a share of Stock on the date of exercise of the SAR. For purposes of 

  

 17 

 
Section 8, an SAR shall be deemed exercised on the date on which the Company receives notice of exercise from the Participant. 
  
 8.5 Deemed Exercise of SARs. If, on the date on which an SAR would
otherwise terminate or expire, the SAR by its terms remains exercisable immediately prior to such termination or expiration and, if so exercised, would result in a payment to the holder of such SAR, then any portion of such SAR which has not
previously been exercised shall automatically be deemed to be exercised as of such date with respect to such portion. 
  
 8.6 Effect of Termination of Service. An SAR shall be exercisable after a Participant’s termination of Service to such extent and during such
period as determined by the Committee, in its discretion, and set forth in the Award Agreement evidencing such SAR. 
  
 8.7 Nontransferability of SARs. SARs may not be assigned or transferred in any manner except by will or the laws of descent and distribution, and,
during the lifetime of the Participant, shall be exercisable only by the Participant or the Participant’s guardian or legal representative. 
  

	9.	Terms and Conditions of Stock Awards.  

  
 Stock Awards shall be evidenced by Award Agreements specifying whether the Award is a Stock Bonus, Restricted Stock Unit or a Stock
Purchase Right and the number of shares of Stock subject to the Award, in such form as the Committee shall from time to time establish. No Stock Award or purported Stock Award shall be a valid and binding obligation of the Company unless evidenced
by a fully executed Award Agreement. Award Agreements evidencing Stock Awards may incorporate all or any of the terms of the Plan by reference and shall comply with and be subject to the following terms and conditions: 
  
 9.1 Types of Stock Awards Authorized. Stock Awards may be in the form
of either a Stock Bonus, Restricted Stock Unit or a Stock Purchase Right. Stock Awards may be granted upon such conditions as the Committee shall determine, including, without limitation, upon the attainment of one or more Performance Goals
described in Section 10.4. If either the grant of a Stock Award or the lapsing of the Restriction Period is to be contingent upon the attainment of one or more Performance Goals, the Committee shall follow procedures substantially equivalent to
those set forth in Sections 10.3 through 10.5(a). 
  
 9.2
Purchase Price. The purchase price for shares of Stock issuable under each Stock Purchase Right shall be established by the Committee in its discretion. No monetary payment (other than applicable tax withholding) shall be required as a
condition of receiving shares of Stock pursuant to a Stock Bonus, the consideration for which shall be services actually rendered to a Participating Company or for its benefit. Notwithstanding the foregoing, the Participant shall furnish
consideration in the form of cash or past services rendered to a Participating Company or for its benefit having a value not less than the par value of the shares of Stock subject to such Stock Award. 
  
 9.3 Purchase Period. A Stock Purchase Right shall be exercisable
within a period established by the Committee, which shall in no event exceed thirty (30) days from the effective date of the grant of the Stock Purchase Right; provided, however, that no Stock Purchase Right 

  

 18 

 
granted to a prospective Employee or prospective Consultant may become exercisable prior to the date on which such person commences Service. 
  
 9.4 Payment of Purchase Price. Except as otherwise provided below,
payment of the purchase price for the number of shares of Stock being purchased pursuant to any Stock Purchase Right shall be made (i) in cash, by check, or cash equivalent, (ii) by such other consideration as may be approved by the Committee from
time to time to the extent permitted by applicable law, or (iii) by any combination thereof. The Committee may at any time or from time to time grant Stock Purchase Rights which do not permit all of the foregoing forms of consideration to be used in
payment of the purchase price or which otherwise restrict one or more forms of consideration. Stock Bonuses shall be issued in consideration for past services actually rendered to a Participating Company or for its benefit. 
  
 9.5 Vesting and Restrictions on Transfer. Shares issued pursuant to
any Stock Award may or may not be made subject to vesting conditioned upon the satisfaction of such Service requirements, conditions, restrictions or performance criteria, including, without limitation, Performance Goals as described in Section 10.4
(the “Vesting Conditions”), as shall be established by the Committee and set forth in the Award Agreement evidencing such Award. During any period (the “Restriction Period”) in which shares acquired
pursuant to a Stock Award remain subject to Vesting Conditions, such shares may not be sold, exchanged, transferred, pledged, assigned or otherwise disposed of other than pursuant to an Ownership Change Event, as defined in Section 12.1, or as
provided in Section 9.8. Restriction Periods shall be a minimum of three (3) years. Upon request by the Company, each Participant shall execute any agreement evidencing such transfer restrictions prior to the receipt of shares of Stock hereunder and
shall promptly present to the Company any and all certificates representing shares of Stock acquired hereunder for the placement on such certificates of appropriate legends evidencing any such transfer restrictions. 
  
 9.6 Voting Rights; Dividends and Distributions. Except as provided in
this Section, Section 9.5 and any Award Agreement, during the Restriction Period applicable to shares subject to a Stock Award, the Participant shall have all of the rights of a stockholder of the Company holding shares of Stock, including the right
to vote such shares and to receive all dividends and other distributions paid with respect to such shares. However, in the event of a dividend or distribution paid in shares of Stock or any other adjustment made upon a change in the capital
structure of the Company as described in Section 4.2, then any and all new, substituted or additional securities or other property (other than normal cash dividends) to which the Participant is entitled by reason of the Participant’s Stock
Award shall be immediately subject to the same Vesting Conditions as the shares subject to the Stock Award with respect to which such dividends or distributions were paid or adjustments were made. 
  
 9.7 Effect of Termination of Service. Unless otherwise provided by the
Committee in the grant of a Stock Award and set forth in the Award Agreement, if a Participant’s Service terminates for any reason, whether voluntary or involuntary (including the Participant’s death or Disability), then (i) the Company
shall have the option to repurchase for the purchase price paid by the Participant any shares acquired by the Participant pursuant to a Stock Purchase Right which remain subject to Vesting Conditions as of the date of the Participant’s
termination of Service and (ii) the Participant shall forfeit to the Company any shares acquired by the 

  

 19 

 
Participant pursuant to a Stock Bonus which remain subject to Vesting Conditions as of the date of the Participant’s termination of Service. The Company
shall have the right to assign at any time any repurchase right it may have, whether or not such right is then exercisable, to one or more persons as may be selected by the Company. 
  
 9.8 Nontransferability of Stock Award Rights. Rights to acquire shares of Stock pursuant to a Stock Award may not be
subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance or garnishment by creditors of the Participant or the Participant’s beneficiary, except by will or the laws of descent and
distribution, and, during the lifetime of the Participant, shall be exercisable only by the Participant or the Participant’s guardian or legal representative. 
  
 9.9 Restricted Stock Units. The Committee is authorized to make Awards of Restricted Stock Units to any Participant
selected by the Committee in such amounts and subject to such terms and conditions as determined by the Committee. The number of Restricted Stock Units will be determined by the Committee and may be linked to the Performance Goals or other specific
performance criteria determined to be appropriate by the Committee, in each case on a specified date or dates or over any period or periods determined by the Committee. At the time of grant, the Committee will specify the date or dates on which the
Restricted Stock Units will become fully vested and nonforfeitable, and may specify such conditions to vesting as it deems appropriate. At the time of grant, the Committee will specify the settlement date applicable to each grant of Restricted Stock
Units which will be no earlier than the vesting date or dates of the Award and may be determined at the election of the Participant. On the settlement date, the Company will transfer to the Participant either (i) one unrestricted, fully transferable
share of Stock or (ii) cash equal to the value of one such share of Stock for each Restricted Stock Unit scheduled to be paid out on such date and which was not previously forfeited. The Committee will specify the purchase price, if any, to be paid
by the Participant to the Company for such shares of Stock. 
  

	10.	Terms and Conditions of Performance Awards.  

  
 Performance Awards shall be evidenced by Award Agreements in such form as the Committee shall from time to time establish. No Performance Award or
purported Performance Award shall be a valid and binding obligation of the Company unless evidenced by a fully executed Award Agreement. Award Agreements evidencing Performance Awards may incorporate all or any of the terms of the Plan by reference
and shall comply with and be subject to the following terms and conditions:  
  
 10.1 Types of Performance Awards Authorized. Performance Awards may be in the form of either Performance Shares or Performance Units. Each Award Agreement evidencing a Performance Award shall specify the number
of Performance Shares or Performance Units subject thereto, the Performance Award Formula, the Performance Goal(s) and Performance Period applicable to the Award, and the other terms, conditions and restrictions of the Award. 
  
 10.2 Initial Value of Performance Shares and Performance Units. Unless
otherwise provided by the Committee in granting a Performance Award, each Performance Share shall have an initial value equal to the Fair Market Value of one (1) share of Stock, subject to 

  

 20 

 
adjustment as provided in Section 4.2, on the effective date of grant of the Performance Share, and each Performance Unit shall have an initial value of one
hundred dollars ($100). The final value payable to the Participant in settlement of a Performance Award determined on the basis of the applicable Performance Award Formula will depend on the extent to which Performance Goals established by the
Committee are attained within the applicable Performance Period established by the Committee. 
  
 10.3 Establishment of Performance Period, Performance Goals and Performance Award Formula. In granting each Performance Award, the Committee shall establish in writing the applicable Performance Period,
Performance Award Formula and one or more Performance Goals which, when measured at the end of the Performance Period, shall determine on the basis of the Performance Award Formula the final value of the Performance Award to be paid to the
Participant. Unless otherwise permitted in compliance with the requirements under Section 162(m) with respect to “performance-based compensation,” the Committee shall establish the Performance Goal(s) and Performance Award Formula
applicable to each Performance Award no later than the earlier of (a) the date ninety (90) days after the commencement of the applicable Performance Period or (b) the date on which 25% of the Performance Period has elapsed, and, in any event, at a
time when the outcome of the Performance Goals remains substantially uncertain. Once established, the Performance Goals and Performance Award Formula shall not be changed during the Performance Period. The Company shall notify each Participant
granted a Performance Award of the terms of such Award, including the Performance Period, Performance Goal(s) and Performance Award Formula. Performance Periods shall be a minimum of twelve (12) months. 
  
 10.4 Measurement of Performance Goals. Performance Goals shall be
established by the Committee on the basis of targets to be attained (“Performance Targets”) with respect to one or more measures of business or financial performance (each, a “Performance Measure”),
subject to the following: 
  
 (a)
Performance Measures. Performance Measures shall have the same meanings as used in the Company’s financial statements, or, if such terms are not used in the Company’s financial statements, they shall have the meaning applied
pursuant to generally accepted accounting principles, or as used generally in the Company’s industry. Performance Measures shall be calculated with respect to the Company and each Subsidiary Corporation consolidated therewith for financial
reporting purposes or such division or other business unit as may be selected by the Committee. For purposes of the Plan, the Performance Measures applicable to a Performance Award shall be calculated in accordance with generally accepted accounting
principles, but prior to the accrual or payment of any Performance Award for the same Performance Period and excluding the effect (whether positive or negative) of any change in accounting standards or any extraordinary, unusual or nonrecurring
item, as determined by the Committee, occurring after the establishment of the Performance Goals applicable to the Performance Award. Performance Measures may be one or more of the following, as determined by the Committee: 
  
 (i) growth in revenue; 
  
 (ii) growth in the market price of the Stock; 
  

 21 

 (iii) operating margin; 
  
 (iv) gross margin; 
  

(v) operating income; 
  
 (vi) pre-tax profit; 
  
 (vii) earnings before interest, taxes and depreciation; 
  
 (viii) net income; 
  

(ix) total return on shares of Stock relative to the increase in an appropriate index as may be selected by the Committee; 

 
 (x) earnings per share; 
  
 (xi) return on stockholder equity; 
  
 (xii) return on net assets; 
  
 (xiii) expenses; 
  
 (xiv) return on capital; 
  
 (xv) economic value added; 
  
 (xvi) market share; and 
  
 (xvii) cash flow, as indicated by book earnings before
interest, taxes, depreciation and amortization. 
  
 (b) Performance Targets. Performance Targets may include a minimum, maximum, target level and intermediate levels of performance, with the final value of a Performance Award determined under the applicable Performance Award
Formula by the level attained during the applicable Performance Period. A Performance Target may be stated as an absolute value or as a value determined relative to a standard selected by the Committee. 
  
 10.5 Settlement of Performance Awards. 
  
 (a) Determination of Final Value. As soon as
practicable following the completion of the Performance Period applicable to a Performance Award, the Committee shall certify in writing the extent to which the applicable Performance Goals have been attained and the resulting final value of the
Award earned by the Participant and to be paid upon its settlement in accordance with the applicable Performance Award Formula. 
  
 (b) Discretionary Adjustment of Award Formula. In its discretion, the Committee may, either at the time it grants a
Performance Award or at any time thereafter, provide for the positive or negative adjustment of the Performance Award Formula applicable to 

  

 22 

 
a Performance Award granted to any Participant who is not a “covered employee” within the meaning of Section 162(m) (a “Covered
Employee”) to reflect such Participant’s individual performance in his or her position with the Company or such other factors as the Committee may determine. If permitted under a Covered Employee’s Award Agreement, the
Committee shall have the discretion, on the basis of such criteria as may be established by the Committee, to reduce some or all of the value of the Performance Award that would otherwise be paid to the Covered Employee upon its settlement
notwithstanding the attainment of any Performance Goal and the resulting value of the Performance Award determined in accordance with the Performance Award Formula. No such reduction may result in an increase in the amount payable upon settlement of
another Participant’s Performance Award. 
  
 (c) Effect of Leaves of Absence. Unless otherwise required by law, payment of the final value, if any, of a Performance Award held by a Participant who has taken in excess of thirty (30) days of leaves of absence during a
Performance Period shall be prorated on the basis of the number of days of the Participant’s Service during the Performance Period during which the Participant was not on a leave of absence. 
  
 (d) Notice to Participants. As soon as
practicable following the Committee’s determination and certification in accordance with Sections 10.5(a) and (b), the Company shall notify each Participant of the determination of the Committee. 
  
 (e) Payment in Settlement of Performance
Awards. As soon as practicable following the Committee’s determination and certification in accordance with Sections 10.5(a) and (b), payment shall be made to each eligible Participant (or such Participant’s legal representative or
other person who acquired the right to receive such payment by reason of the Participant’s death) of the final value of the Participant’s Performance Award. Payment of such amount shall be made in cash, shares of Stock, or a combination
thereof as determined by the Committee. Unless otherwise provided in the Award Agreement evidencing a Performance Award, payment shall be made in a lump sum. An Award Agreement may provide for deferred payment in a lump sum or in installments. If
any payment is to be made on a deferred basis, the Committee may, but shall not be obligated to, provide for the payment during the deferral period of Dividend Equivalents or interest. 
  
 (f) Provisions Applicable to Payment in Shares. If payment is to be made in shares of Stock,
the number of such shares shall be determined by dividing the final value of the Performance Award by the value of a share of Stock determined by the method specified in the Award Agreement. Such methods may include, without limitation, the closing
market price on a specified date (such as the settlement date) or an average of market prices over a series of trading days. Shares of Stock issued in payment of any Performance Award may be fully vested and freely transferable shares or may be
shares of Stock subject to Vesting Conditions as provided in Section 9.5. Any shares subject to Vesting Conditions shall be evidenced by an appropriate Award Agreement and shall be subject to the provisions of Sections 9.5 through 9.8 above.

  
 10.6 Dividend Equivalents. In its discretion, the
Committee may provide in the Award Agreement evidencing any Performance Share Award that the Participant shall be entitled to receive Dividend Equivalents with respect to the payment of cash dividends on Stock having a record date prior to the date
on which the Performance Shares are settled or forfeited. Dividend 

  

 23 

 
Equivalents may be paid currently or may be accumulated and paid to the extent that Performance Shares become nonforfeitable, as determined by the Committee.
Settlement of Dividend Equivalents may be made in cash, shares of Stock, or a combination thereof as determined by the Committee, and may be paid on the same basis as settlement of the related Performance Share as provided in Section 10.5. Dividend
Equivalents shall not be paid with respect to Performance Units. 
  
 10.7 Effect of Termination of Service. The effect of a Participant’s termination of Service on the Participant’s Performance Award shall be as determined by the Committee, in its discretion, and set forth in the Award
Agreement evidencing such Performance Award. 
  
 10.8
Nontransferability of Performance Awards. Prior to settlement in accordance with the provisions of the Plan, no Performance Award may be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge,
encumbrance, or garnishment by creditors of the Participant or the Participant’s beneficiary, except by will or by the laws of descent and distribution. All rights with respect to a Performance Award granted to a Participant hereunder shall be
exercisable during his or her lifetime only by such Participant or the Participant’s guardian or legal representative. 
  

	11.	Standard Forms of Award Agreement. 

  
 11.1 Award Agreements. Each Award shall comply with and be subject to the terms and conditions set forth in the appropriate form of Award Agreement
approved by the Committee and as amended from time to time. Any Award Agreement may consist of an appropriate form of Notice of Grant and a form of Agreement incorporated therein by reference, or such other form or forms as the Committee may approve
from time to time. 
  
 11.2 Authority to Vary Terms. The
Committee shall have the authority from time to time to vary the terms of any standard form of Award Agreement either in connection with the grant or amendment of an individual Award or in connection with the authorization of a new standard form or
forms; provided, however, that the terms and conditions of any such new, revised or amended standard form or forms of Award Agreement are not inconsistent with the terms of the Plan. 
  

	12.	Change in Control. 

  
 12.1 Definitions. 
  
 (a) An “Ownership Change Event” shall be deemed to have occurred if any of the following occurs with
respect to the Company: (i) the direct or indirect sale or exchange by the stockholders of the Company of all or substantially all of the voting stock of the Company; (ii) a merger or consolidation in which the Company is a party; (iii) the sale,
exchange, or transfer of all or substantially all of the assets of the Company (other than a sale, exchange or transfer to one or more subsidiaries of the Company); or (iv) a liquidation or dissolution of the Company. 
  
 (b) A “Change in Control”
shall mean an Ownership Change Event or series of related Ownership Change Events (collectively, a “Transaction”) in which the stockholders 

  

 24 

 
of the Company immediately before the Transaction do not retain immediately after the Transaction, direct or indirect beneficial ownership of more than fifty
percent (50%) of the total combined voting power of the outstanding voting securities of the Company or, in the case of an Ownership Change Event described in Section 12.1(a)(iii), the entity to which the assets of the Company were transferred.

  
 12.2 Effect of Change in Control on Options and SARs.
In the event of a Change in Control, the surviving, continuing, successor, or purchasing entity or parent thereof, as the case may be (the “Acquiror”), may, without the consent of any Participant, either assume the
Company’s rights and obligations under outstanding Options and SARs or substitute for outstanding Options and SARs substantially equivalent options and SARs (as the case may be) for the Acquiror’s stock. In the event the Acquiror elects
not to assume or substitute for outstanding Options or SARs in connection with a Change in Control, the Committee shall provide that any unexercised and/or unvested portions of outstanding Options and SARs shall be immediately exercisable and vested
in full as of the date thirty (30) days prior to the date of the Change in Control. The exercise and/or vesting of any Option or SAR that was permissible solely by reason of this paragraph 12.2 shall be conditioned upon the consummation of the
Change in Control. Any Options or SARs which are not assumed by the Acquiror in connection with the Change in Control nor exercised as of the time of consummation of the Change in Control shall terminate and cease to be outstanding effective as of
the time of consummation of the Change in Control. 
  
 12.3
Effect of Change in Control on Stock Awards. The Committee may, in its discretion, provide in any Award Agreement evidencing a Stock Award that, in the event of a Change in Control, the lapsing of the Restriction Period applicable to the
shares subject to the Stock Award held by a Participant whose Service has not terminated prior to such date shall be accelerated effective as of the date of the Change in Control to such extent as specified in such Award Agreement. Any acceleration
of the lapsing of the Restriction Period that was permissible solely by reason of this Section 12.3 and the provisions of such Award Agreement shall be conditioned upon the consummation of the Change in Control. 
  
 12.4 Effect of Change in Control on Performance Awards. The Committee
may, in its discretion, provide in any Award Agreement evidencing a Performance Award that, in the event of a Change in Control, the Performance Award held by a Participant whose Service has not terminated prior to such date shall become payable
effective as of the date of the Change in Control to such extent as specified in such Award Agreement. 
  

	13.	Compliance with Securities Law. 

  
 The grant of Awards and the issuance of shares of Stock pursuant to any Award shall be subject to compliance with all applicable requirements of federal,
state and foreign law with respect to such securities and the requirements of any stock exchange or market system upon which the Stock may then be listed. In addition, no Award may be exercised or shares issued pursuant to an Award unless (i) a
registration statement under the Securities Act shall at the time of such exercise or issuance be in effect with respect to the shares issuable pursuant to the Award or (ii) in the opinion of legal counsel to the Company, the shares issuable
pursuant to the Award may be issued in accordance with the terms of an applicable exemption from the 

  

 25 

 
registration requirements of the Securities Act. The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any,
deemed by the Company’s legal counsel to be necessary to the lawful issuance and sale of any shares hereunder shall relieve the Company of any liability in respect of the failure to issue or sell such shares as to which such requisite authority
shall not have been obtained. As a condition to issuance of any Stock, the Company may require the Participant to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any applicable law or regulation and to
make any representation or warranty with respect thereto as may be requested by the Company. 
  

	14.	Tax Withholding. 

  
 14.1 Tax Withholding in General. The Company shall have the right to deduct from any and all payments made under the Plan, or to require the
Participant, through payroll withholding, cash payment or otherwise, including by means of a Cashless Exercise of an Option, to make adequate provision for, the federal, state, local and foreign taxes, if any, required by law to be withheld by the
Participating Company Group with respect to an Award or the shares acquired pursuant thereto. The Company shall have no obligation to deliver shares of Stock, to release shares of Stock from an escrow established pursuant to an Award Agreement, or
to make any payment in cash under the Plan until the Participating Company Group’s tax withholding obligations have been satisfied by the Participant. 
  
 14.2 Withholding in Shares. The Company shall have the right, but not the obligation, to deduct from the shares of Stock issuable to a Participant
upon the exercise or settlement of an Award, or to accept from the Participant the tender of, a number of whole shares of Stock having a Fair Market Value, as determined by the Company, equal to all or any part of the tax withholding obligations of
the Participating Company Group. The Fair Market Value of any shares of Stock withheld or tendered to satisfy any such tax withholding obligations shall not exceed the amount determined by the applicable minimum statutory withholding rates.

  

	15.	Termination or Amendment of Plan. 

  
 The Committee may terminate or amend the Plan at any time. However, without the approval of the Company’s stockholders, there shall be (a) no
increase in the maximum aggregate number of shares of Stock that may be issued under the Plan (except by operation of the provisions of Section 4.2), (b) no change in the class of persons eligible to receive Incentive Stock Options, and (c) no other
amendment of the Plan that would require approval of the Company’s stockholders under any applicable law, regulation or rule. No termination or amendment of the Plan shall affect any then outstanding Award unless expressly provided by the
Committee. In any event, no termination or amendment of the Plan may adversely affect any then outstanding Award without the consent of the Participant, unless such termination or amendment is necessary to comply with any applicable law, regulation
or rule. 
  

	16.	Miscellaneous Provisions. 

  
 16.1 Repurchase Rights. Shares issued under the Plan may be subject to one or more repurchase options, or other conditions and restrictions as
determined by the Committee in its discretion at the time the Award is granted. The Company shall have the right to assign at any 

  

 26 

 
time any repurchase right it may have, whether or not such right is then exercisable, to one or more persons as may be selected by the Company. Upon request
by the Company, each Participant shall execute any agreement evidencing such transfer restrictions prior to the receipt of shares of Stock hereunder and shall promptly present to the Company any and all certificates representing shares of Stock
acquired hereunder for the placement on such certificates of appropriate legends evidencing any such transfer restrictions. 
  
 16.2 Provision of Information. Each Participant shall be given access to information concerning the Company equivalent to that information
generally made available to the Company’s common stockholders. 
  
 16.3 Rights as Employee, Consultant or Director. No person, even though eligible pursuant to Section 5, shall have a right to be selected as a Participant, or, having been so selected, to be selected again as a Participant. Nothing
in the Plan or any Award granted under the Plan shall confer on any Participant a right to remain an Employee, Consultant or Director, or interfere with or limit in any way any right of a Participating Company to terminate the Participant’s
Service at any time. To the extent that an Employee of a Participating Company other than the Company receives an Award under the Plan, that Award can in no event be understood or interpreted to mean that the Company is the Employee’s employer
or that the Employee has an employment relationship with the Company. 
  
 16.4 Rights as a Stockholder. A Participant shall have no rights as a stockholder with respect to any shares covered by an Award until the date of the issuance of such shares (as evidenced by the appropriate entry on the books of the
Company or of a duly authorized transfer agent of the Company). No adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date such shares are issued, except as provided in Section 4.2 or
another provision of the Plan. 
  
 16.5 Fractional Shares.
The Company shall not be required to issue fractional shares upon the exercise or settlement of any Award. 
  
 16.6 Beneficiary Designation. Subject to local laws and procedures, each Participant may file with the Company a written designation of a
beneficiary who is to receive any benefit under the Plan to which the Participant is entitled in the event of such Participant’s death before he or she receives any or all of such benefit. Each designation will revoke all prior designations by
the same Participant, shall be in a form prescribed by the Company, and will be effective only when filed by the Participant in writing with the Company during the Participant’s lifetime. If a married Participant designates a beneficiary other
than the Participant’s spouse, the effectiveness of such designation may be subject to the consent of the Participant’s spouse. If a Participant dies without an effective designation of a beneficiary who is living at the time of the
Participant’s death, the Company will pay any remaining unpaid benefits to the Participant’s legal representative. 
  
 16.7 Unfunded Obligation. Participants shall have the status of general unsecured creditors of the Company. Any amounts payable to Participants
pursuant to the Plan shall be unfunded and unsecured obligations for all purposes, including, without limitation, Title I of the Employee Retirement Income Security Act of 1974. No Participating Company shall be required 

  

 27 

 
to segregate any monies from its general funds, or to create any trusts, or establish any special accounts with respect to such obligations. The Company
shall retain at all times beneficial ownership of any investments, including trust investments, which the Company may make to fulfill its payment obligations hereunder. Any investments or the creation or maintenance of any trust or any Participant
account shall not create or constitute a trust or fiduciary relationship between the Committee or any Participating Company and a Participant, or otherwise create any vested or beneficial interest in any Participant or the Participant’s
creditors in any assets of any Participating Company. The Participants shall have no claim against any Participating Company for any changes in the value of any assets which may be invested or reinvested by the Company with respect to the Plan.

  

 28 

  
 PLAN HISTORY

  

			
	July 1, 2003	  	Board of Directors of SigmaTel, Inc., a Delaware corporation (the “Company”) adopts Plan effective as of the closing of the initial public offering (the “IPO”) of the
Company with an initial reserve of Six Million Eight Hundred and Sixty Six Thousand Seven Hundred and Forty Seven (6,866,747) shares (determined after taking into account the one-for-three reverse stock split to be completed by the Company prior to
the initial registration by the Company of its Stock under Section 12 of the Exchange Act).
		
	August 20, 2003	  	Shareholders of the Company approve Plan effective as of the closing of the IPO, with an initial reserve of Six Million Eight Hundred and Sixty Six Thousand Seven Hundred and Forty Seven
(6,866,747) shares (determined after taking into account the one-for-three reverse stock split to be completed by the Company prior to the initial registration by the Company of its Stock under Section 12 of the Exchange Act).
		
	September 18, 2003	  	Original Effective Date of the Plan.
		
	February 22, 2005	  	Board of Directors of the Company adopts Plan amendment and restatement which (i) increases share reserve by 2,500,000 shares; (ii) reduces from 1,000,000 to 500,000 the number of shares
which may be issued as Stock Awards or Performance Awards; (iii) reduces the term of Option from 10 years to 7 years; (iv) approves Section 162(m) provisions and (v) authorizes use of Restricted Stock Units.
		
	April 21, 2005	  	Shareholders of the Company approve Plan amendment and restatement.
		
	April 19, 2005	  	Board of Directors of the Company adopts additional Plan amendment and restatement which restricts the Company from granting Stock Awards and Performance Awards without meeting certain
minimum vesting requirements as enumerated under the Plan.

  

 SIGMATEL, INC. 
 STOCK OPTION AGREEMENT 
  
 SigmaTel, Inc. has granted to the individual (the “Optionee”) named in the Notice of Grant of Stock Option (the “Notice”) to which this Stock Option
Agreement (the “Option Agreement”) is attached an option (the “Option”) to purchase certain shares of Stock upon the terms and conditions set forth in the Notice and this
Option Agreement. The Option has been granted pursuant to and shall in all respects be subject to the terms and conditions of the SigmaTel, Inc. 2003 Equity Incentive Plan (the “Plan”), as amended to the Date of
Option Grant, the provisions of which are incorporated herein by reference. By signing the Notice, the Optionee: (a) represents that the Optionee has read and is familiar with the terms and conditions of the Notice, the Plan and this Option
Agreement, including the Effect of Termination of Service set forth in Section 7, (b) accepts the Option subject to all of the terms and conditions of the Notice, the Plan and this Option Agreement, (c) agrees to accept as binding, conclusive and
final all decisions or interpretations of the Board upon any questions arising under the Notice, the Plan or this Option Agreement, and (d) acknowledges receipt of a copy of the Notice, the Plan and this Option Agreement. 
  

	 	1.	DEFINITIONS AND CONSTRUCTION. 

  
 1.1 Definitions. Unless otherwise defined herein, capitalized terms shall have the meanings assigned
to such terms in the Notice or the Plan. 
  
 1.2
Construction. Captions and titles contained herein are for convenience only and shall not affect the meaning or interpretation of any provision of this Option Agreement. Except when otherwise indicated by the context, the singular shall
include the plural and the plural shall include the singular. Use of the term “or” is not intended to be exclusive, unless the context clearly requires otherwise. 
  

	 	2.	TAX CONSEQUENCES. 

  

2.1 Tax Status of Option. This Option is intended to have the tax status designated in the Notice. 
  
 (a) Incentive Stock Option. If the Notice so
designates, this Option is intended to be an Incentive Stock Option within the meaning of Section 422(b) of the Code, but the Company does not represent or warrant that this Option qualifies as such. The Optionee should consult with the
Optionee’s own tax advisor regarding the tax effects of this Option and the requirements necessary to obtain favorable income tax treatment under Section 422 of the Code, including, but not limited to, holding period requirements. (NOTE TO
OPTIONEE: If the Option is exercised more than three (3) months after the date on which you cease to be an Employee (other than by reason of your death or permanent and total disability as defined in Section 22(e)(3) of the Code), the Option will be
treated as a Nonstatutory Stock Option and not as an Incentive Stock Option to the extent required by Section 422 of the Code.) 
  
 (b) Nonstatutory Stock Option. If the Notice so designates, this Option is intended to be a Nonstatutory Stock Option and
shall not be treated as an Incentive Stock Option within the meaning of Section 422(b) of the Code. 
  

 1 

 2.2 ISO Fair Market Value Limitation. If the Notice designates this Option as
an Incentive Stock Option, then to the extent that the Option (together with all Incentive Stock Options granted to the Optionee under all stock option plans of the Participating Company Group, including the Plan) becomes exercisable for the
first time during any calendar year for shares having a Fair Market Value greater than One Hundred Thousand Dollars ($100,000), the portion of such options which exceeds such amount will be treated as Nonstatutory Stock Options. For purposes of this
Section 2.2, options designated as Incentive Stock Options are taken into account in the order in which they were granted, and the Fair Market Value of stock is determined as of the time the option with respect to such stock is granted. If the Code
is amended to provide for a different limitation from that set forth in this Section 2.2, such different limitation shall be deemed incorporated herein effective as of the date required or permitted by such amendment to the Code. If the Option is
treated as an Incentive Stock Option in part and as a Nonstatutory Stock Option in part by reason of the limitation set forth in this Section 2.2, the Optionee may designate which portion of such Option the Optionee is exercising. In the absence of
such designation, the Optionee shall be deemed to have exercised the Incentive Stock Option portion of the Option first. Separate certificates representing each such portion shall be issued upon the exercise of the Option. (NOTE TO OPTIONEE: If the
aggregate Exercise Price of the Option (that is, the Exercise Price multiplied by the Number of Option Shares) plus the aggregate exercise price of any other Incentive Stock Options you hold (whether granted pursuant to the Plan or any other stock
option plan of the Participating Company Group) is greater than $100,000, you should contact the Chief Financial Officer of the Company to ascertain whether the entire Option qualifies as an Incentive Stock Option.) 
  

	 	3.	ADMINISTRATION. 

  
 All questions of interpretation concerning this Option Agreement shall be determined by the Board. All determinations by the Board shall
be final and binding upon all persons having an interest in the Option. Any officer of a Participating Company shall have the authority to act on behalf of the Company with respect to any matter, right, obligation, or election which is the
responsibility of or which is allocated to the Company herein, provided the officer has apparent authority with respect to such matter, right, obligation, or election. 
  

	 	4.	EXERCISE OF THE OPTION. 

  
 4.1 Right to Exercise. Except as otherwise provided
herein, the Option shall be exercisable on and after the Date of Option Grant (or if later, the Optionee’s Service commencement date) and prior to the termination of the Option (as provided in Section 6) in an amount not to exceed the number of
Vested Shares less the number of shares previously acquired upon exercise of the Option. 
  
 4.2 Method of Exercise. Exercise of the Option shall be by written notice to the Company which must state the election to exercise
the Option, the number of whole shares of Stock for which the Option is being exercised and such other representations and agreements as to the Optionee’s investment intent with respect to such shares as may be required pursuant to the
provisions of this Option Agreement. The written notice must be signed by the Optionee and must be delivered in person, by certified or registered mail, return receipt requested, by confirmed facsimile transmission, or by such other means as the
Company may permit, to the Chief Financial Officer of the Company, or other authorized representative of the Participating Company Group, prior to the termination of the Option as set forth in Section 6, accompanied by 

  

 2 

 
full payment of the aggregate Exercise Price for the number of shares of Stock being purchased. The Option shall be deemed to be exercised upon receipt by
the Company of such written notice and the aggregate Exercise Price. 
  
 4.3 Payment of Exercise Price. 
  
 (a) Forms of Consideration Authorized. Except as otherwise provided below, payment of the aggregate Exercise Price for the number of shares of Stock for which the Option is being exercised shall be made
(i) in cash, by check, or cash equivalent, (ii) by tender to the Company, or attestation to the ownership, of whole shares of Stock owned by the Optionee having a Fair Market Value (as determined by the Company without regard to any restrictions on
transferability applicable to such stock by reason of federal or state securities laws or agreements with an underwriter for the Company) not less than the aggregate Exercise Price, (iii) by means of a Cashless Exercise, as defined in Section
4.3(b), or (iv) by any combination of the foregoing. 
  
 (b) Limitations on Forms of Consideration. 
  
 (i) Tender of Stock. Notwithstanding the foregoing, the Option may not be exercised by tender to the Company, or attestation to the ownership, of shares of Stock to the extent such tender or attestation would
constitute a violation of the provisions of any law, regulation or agreement restricting the redemption of the Company’s stock. The Option may not be exercised by tender to the Company, or attestation to the ownership, of shares of Stock unless
such shares either have been owned by the Optionee for more than six (6) months or were not acquired, directly or indirectly, from the Company. 
  
 (ii) Cashless Exercise. A “Cashless Exercise” means the delivery of a properly executed notice
together with irrevocable instructions to a broker in a form acceptable to the Company providing for the assignment to the Company of the proceeds of a sale or loan with respect to some or all of the shares of Stock acquired upon the exercise of the
Option pursuant to a program or procedure approved by the Company (including, without limitation, through an exercise complying with the provisions of Regulation T as promulgated from time to time by the Board of Governors of the Federal Reserve
System). The Company reserves, at any and all times, the right, in the Company’s sole and absolute discretion, to decline to approve or terminate any such program or procedure. 
  
 4.4 Tax Withholding. At the time the Option is exercised, in whole or in part, or at any time
thereafter as requested by the Company, the Optionee hereby authorizes withholding from payroll and any other amounts payable to the Optionee, and otherwise agrees to make adequate provision for (including by means of a Cashless Exercise to the
extent permitted by the Company), any sums required to satisfy the federal, state, local and foreign tax withholding obligations of the Participating Company Group, if any, which arise in connection with the Option, including, without limitation,
obligations arising upon (i) the exercise, in whole or in part, of the Option, (ii) the transfer, in whole or in part, of any shares acquired upon exercise of the Option, (iii) the operation of any law or regulation providing for the imputation of
interest, or (iv) the lapsing of any restriction with respect to any shares acquired upon exercise of the Option. The Company shall have no obligation to deliver shares of Stock until the tax withholding obligations of the Participating Company
Group have been satisfied by the Optionee. 
  

 3 

 4.5 Certificate Registration. Except in the event the Exercise Price is paid by
means of a Cashless Exercise, the certificate for the shares as to which the Option is exercised shall be registered in the name of the Optionee, or, if applicable, in the names of the heirs of the Optionee. 
  
 4.6 Restrictions on Grant of the Option and Issuance of
Shares. The grant of the Option and the issuance of shares of Stock upon exercise of the Option shall be subject to compliance with all applicable requirements of federal, state or foreign law with respect to such securities. The Option may not
be exercised if the issuance of shares of Stock upon exercise would constitute a violation of any applicable federal, state or foreign securities laws or other law or regulations or the requirements of any stock exchange or market system upon which
the Stock may then be listed. In addition, the Option may not be exercised unless (i) a registration statement under the Securities Act shall at the time of exercise of the Option be in effect with respect to the shares issuable upon exercise of the
Option or (ii) in the opinion of legal counsel to the Company, the shares issuable upon exercise of the Option may be issued in accordance with the terms of an applicable exemption from the registration requirements of the Securities Act. THE
OPTIONEE IS CAUTIONED THAT THE OPTION MAY NOT BE EXERCISED UNLESS THE FOREGOING CONDITIONS ARE SATISFIED. ACCORDINGLY, THE OPTIONEE MAY NOT BE ABLE TO EXERCISE THE OPTION WHEN DESIRED EVEN THOUGH THE OPTION IS VESTED. The inability of the Company to
obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal counsel to be necessary to the lawful issuance and sale of any shares subject to the Option shall relieve the Company of any liability in
respect of the failure to issue or sell such shares as to which such requisite authority shall not have been obtained. As a condition to the exercise of the Option, the Company may require the Optionee to satisfy any qualifications that may be
necessary or appropriate, to evidence compliance with any applicable law or regulation and to make any representation or warranty with respect thereto as may be requested by the Company. 
  
 4.7 Fractional Shares. The Company shall not be required to issue fractional shares upon the exercise
of the Option. 
  

	 	5.	NONTRANSFERABILITY OF THE OPTION. 

  
 The Option may be exercised during the lifetime of the
Optionee only by the Optionee or the Optionee’s guardian or legal representative and may not be assigned or transferred in any manner except by will or by the laws of descent and distribution. Following the death of the Optionee, the Option, to
the extent provided in Section 7, may be exercised by the Optionee’s legal representative or by any person empowered to do so under the deceased Optionee’s will or under the then applicable laws of descent and distribution. 
  

	 	6.	TERMINATION OF THE OPTION. 

  
 The Option shall terminate and may no longer be exercised on
the first to occur of (a) the Option Expiration Date, (b) the last date for exercising the Option following termination of the Optionee’s Service as described in Section 7, or (c) a Change in Control to the extent provided in Section 8.

  

 4 

	 	7.	EFFECT OF TERMINATION OF SERVICE. 

  
 7.1 Option Exercisability. 
  
 (a) Disability. If the Optionee’s Service
with the Participating Company Group terminates because of the Disability of the Optionee, the Option, to the extent unexercised and exercisable on the date on which the Optionee’s Service terminated, may be exercised by the Optionee (or the
Optionee’s guardian or legal representative) at any time prior to the expiration of twelve (12) months after the date on which the Optionee’s Service terminated, but in any event no later than the Option Expiration Date. 
  
 (b) Death. If the Optionee’s Service with
the Participating Company Group terminates because of the death of the Optionee, the Option, to the extent unexercised and exercisable on the date on which the Optionee’s Service terminated, may be exercised by the Optionee’s legal
representative or other person who acquired the right to exercise the Option by reason of the Optionee’s death at any time prior to the expiration of twelve (12) months after the date on which the Optionee’s Service terminated, but in any
event no later than the Option Expiration Date. The Optionee’s Service shall be deemed to have terminated on account of death if the Optionee dies within three (3) months after the Optionee’s termination of Service. 
  
 (c) Other Termination of Service. If the
Optionee’s Service with the Participating Company Group terminates for any reason, except Disability or death, the Option, to the extent unexercised and exercisable by the Optionee on the date on which the Optionee’s Service terminated,
may be exercised by the Optionee at any time prior to the expiration of three (3) months (or such other longer period of time as determined by the Board, in its discretion) after the date on which the Optionee’s Service terminated, but in any
event no later than the Option Expiration Date. 
  
 7.2 Extension if Exercise Prevented by Law. Notwithstanding the foregoing, if the exercise of the Option within the applicable time periods set forth in Section 7.1 is prevented by the provisions of Section 4.6, the Option shall
remain exercisable until three (3) months after the date the Optionee is notified by the Company that the Option is exercisable, but in any event no later than the Option Expiration Date. 
  
 7.3 Extension if Optionee Subject to Section 16(b).
Notwithstanding the foregoing, if a sale within the applicable time periods set forth in Section 7.1 of shares acquired upon the exercise of the Option would subject the Optionee to suit under Section 16(b) of the Exchange Act, the Option shall
remain exercisable until the earliest to occur of (i) the tenth (10th) day following the date on which a sale of such shares by the Optionee would no longer be subject to such suit, (ii) the one hundred and ninetieth (190th) day after the
Optionee’s termination of Service, or (iii) the Option Expiration Date. 
  

	 	8.	CHANGE IN CONTROL. 

  
 In the event of a Change in Control, the Acquiring Corporation may either assume the Company’s rights
and obligations under the Option or substitute for the Option a substantially equivalent option for the Acquiring Corporation’s stock. The Option shall terminate and cease to be outstanding effective as of the date of the Change in Control to
the extent that the Option is neither assumed or substituted for by the Acquiring Corporation in 

  

 5 

 
connection with the Change in Control nor exercised as of the date of the Change in Control. Notwithstanding the foregoing, shares acquired upon exercise of
the Option prior to the Change in Control and any consideration received pursuant to the Change in Control with respect to such shares shall continue to be subject to all applicable provisions of this Option Agreement except as otherwise provided
herein. 
  

	 	9.	ADJUSTMENTS FOR CHANGES IN CAPITAL STRUCTURE.

  
 In the event of any stock
dividend, stock split, reverse stock split, recapitalization, combination, reclassification, or similar change in the capital structure of the Company, appropriate adjustments shall be made in the number, Exercise Price and class of shares of stock
subject to the Option. If a majority of the shares which are of the same class as the shares that are subject to the Option are exchanged for, converted into, or otherwise become (whether or not pursuant to an Ownership Change Event) shares of
another corporation (the “New Shares”), the Board may unilaterally amend the Option to provide that the Option is exercisable for New Shares. In the event of any such amendment, the Number of Option Shares and the
Exercise Price shall be adjusted in a fair and equitable manner, as determined by the Board, in its discretion. Notwithstanding the foregoing, any fractional share resulting from an adjustment pursuant to this Section 9 shall be rounded down to the
nearest whole number, and in no event may the Exercise Price be decreased to an amount less than the par value, if any, of the stock subject to the Option. The adjustments determined by the Board pursuant to this Section 9 shall be final, binding
and conclusive. 
  

	 	10.	RIGHTS AS A STOCKHOLDER, EMPLOYEE OR CONSULTANT.

  
 The Optionee shall have no
rights as a stockholder with respect to any shares covered by the Option until the date of the issuance of a certificate for the shares for which the Option has been exercised (as evidenced by the appropriate entry on the books of the Company or of
a duly authorized transfer agent of the Company). No adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date such certificate is issued, except as provided in Section 9. If the Optionee is
an Employee, the Optionee understands and acknowledges that, except as otherwise provided in a separate, written employment agreement between a Participating Company and the Optionee, the Optionee’s employment is “at will” and is for
no specified term. Nothing in this Option Agreement shall confer upon the Optionee any right to continue in the Service of a Participating Company or interfere in any way with any right of the Participating Company Group to terminate the
Optionee’s Service as an Employee or Consultant, as the case may be, at any time. 
  

	 	11.	NOTICE OF SALES UPON DISQUALIFYING DISPOSITION.

  
 The Optionee shall dispose of
the shares acquired pursuant to the Option only in accordance with the provisions of this Option Agreement. In addition, if the Notice designates this Option as an Incentive Stock Option, the Optionee shall (a) promptly notify the Chief
Financial Officer of the Company if the Optionee disposes of any of the shares acquired pursuant to the Option within one (1) year after the date the Optionee exercises all or part of the Option or within two (2) years after the Date of Option Grant
and (b) provide the Company with a description of the circumstances of such disposition. Until such time as the Optionee disposes of such shares in a manner consistent with the provisions of this Option Agreement, unless otherwise expressly
authorized by the Company, the Optionee shall hold all shares acquired 

  

 6 

 
pursuant to the Option in the Optionee’s name (and not in the name of any nominee) for the one-year period immediately after the exercise of the Option
and the two-year period immediately after Date of Option Grant. At any time during the one-year or two-year periods set forth above, the Company may place a legend on any certificate representing shares acquired pursuant to the Option requesting the
transfer agent for the Company’s stock to notify the Company of any such transfers. The obligation of the Optionee to notify the Company of any such transfer shall continue notwithstanding that a legend has been placed on the certificate
pursuant to the preceding sentence. 
  

	 	12.	LEGENDS. 

  
 The Company may at any time place legends referencing any applicable federal, state or foreign securities law restrictions, and, if
applicable, that the shares were acquired upon exercise of an Incentive Stock Option on all certificates representing shares of stock subject to the provisions of this Option Agreement. The Optionee shall, at the request of the Company, promptly
present to the Company any and all certificates representing shares acquired pursuant to the Option in the possession of the Optionee in order to carry out the provisions of this Section. 
  

	 	13.	LOCK-UP AGREEMENT. 

  
 The Optionee hereby agrees that in the event of any underwritten public offering of stock, including an
initial public offering of stock, made by the Company pursuant to an effective registration statement filed under the Securities Act, the Optionee shall not offer, sell, contract to sell, pledge, hypothecate, grant any option to purchase or make any
short sale of, or otherwise dispose of any shares of stock of the Company or any rights to acquire stock of the Company for such period of time from and after the effective date of such registration statement as may be established by the underwriter
for such public offering; provided, however, that such period of time shall not exceed one hundred eighty (180) days from the effective date of the registration statement to be filed in connection with such public offering. The foregoing limitation
shall not apply to shares registered in the public offering under the Securities Act. 
  

	 	14.	RESTRICTIONS ON TRANSFER OF SHARES. 

  
 No shares acquired upon exercise of the Option may be sold,
exchanged, transferred (including, without limitation, any transfer to a nominee or agent of the Optionee), assigned, pledged, hypothecated or otherwise disposed of, including by operation of law, in any manner which violates any of the provisions
of this Option Agreement, and any such attempted disposition shall be void. The Company shall not be required (a) to transfer on its books any shares which will have been transferred in violation of any of the provisions set forth in this Option
Agreement or (b) to treat as owner of such shares or to accord the right to vote as such owner or to pay dividends to any transferee to whom such shares will have been so transferred. 
  

	 	15.	MISCELLANEOUS PROVISIONS. 

  

15.1 Binding Effect. Subject to the restrictions on transfer set forth herein, this Option Agreement shall inure to the benefit
of and be binding upon the parties hereto and their respective heirs, executors, administrators, successors and assigns. 
  

 7 

 15.2 Termination or Amendment. The Board may terminate or amend the Plan or the
Option at any time; provided, however, that except as provided in Section 8 in connection with a Change in Control, no such termination or amendment may adversely affect the Option or any unexercised portion hereof without the consent of the
Optionee unless such termination or amendment is necessary to comply with any applicable law or government regulation or is required to enable the Option, if designated an Incentive Stock Option in the Notice, to qualify as an Incentive Stock
Option. No amendment or addition to this Option Agreement shall be effective unless in writing. 
  
 15.3 Notices. Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given (except to
the extent that this Option Agreement provides for effectiveness only upon actual receipt of such notice) upon personal delivery or upon deposit in the United States Post Office, by registered or certified mail, with postage and fees prepaid,
addressed to the other party at the address shown below that party’s signature on the Notice or at such other address as such party may designate in writing from time to time to the other party. 
  
 15.4 Integrated Agreement. The Notice, this Option
Agreement and the Plan constitute the entire understanding and agreement of the Optionee and the Participating Company Group with respect to the subject matter contained herein or therein and supersedes any prior agreements, understandings,
restrictions, representations, or warranties among the Optionee and the Participating Company Group with respect to such subject matter other than those as set forth or provided for herein or therein. To the extent contemplated herein or therein,
the provisions of the Notice and the Option Agreement shall survive any exercise of the Option and shall remain in full force and effect. 
  
 15.5 Applicable Law. This Option Agreement shall be governed by the laws of the State of Texas as such laws are applied to
agreements between Texas residents entered into and to be performed entirely within the State of Texas. 
  
 15.6 Counterparts. The Notice may be executed in counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. 
  

 8 

 SIGMATEL, INC. 
 NOTICE OF GRANT OF STOCK OPTION 
  
                                     (the
“Optionee”) has been granted an option (the “Option”) to purchase certain shares of Stock of SigmaTel, Inc. pursuant to the SigmaTel, Inc. 2003 Equity Incentive Plan (the
“Plan”), as follows: 
  

			
	 Grant Number:
	  	___________________
		
	 Date of Option Grant:
	  	___________________
		
	 Number of Option Shares:
	  	___________________
		
	 Exercise Price:
	  	$                                      
   per share
		
	 Initial Vesting Date:
	  	____________________
		
	 Option Expiration Date:
	  	The date seven (7) years after the Date of Option Grant.
		
	 Tax Status of Option:
	  	                                     Stock Option.
(Enter “Incentive” or “Nonstatutory.” If blank, this Option will be a Nonstatutory Stock Option.)

  
 Vested Shares:
Except as provided in the Plan and Stock Option Agreement, the number of Vested Shares (disregarding any resulting fractional share) as of any date is determined by multiplying the Number of Option Shares by the “Vested
Ratio” determined as of such date as follows: 
  

			
	 	  	Vested Ratio

	 Prior to Initial Vesting Date
	  	0
		
	 On Initial Vesting Date, provided the Optionee’s Service has not terminated prior to such date
	  	1/4
		
	 Plus:
 For each full month of the Optionee’s continuous Service from Initial Vesting Date until the Vested Ratio equals 1/1, an
additional
	  	1/48

  
 By their signatures
below, the Company and the Optionee agree that the Option is governed by this Notice and by the provisions of the Plan and the Stock Option Agreement, both of which are attached to and made a part of this document. The Optionee acknowledges receipt
of copies of the Plan and the Stock Option Agreement, represents that the Optionee has read and is familiar with their provisions, and hereby accepts the Option subject to all of their terms and conditions. 
  

									
	 SIGMATEL, INC.
	 	 	 	 	 	 OPTIONEE

					
	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 Signature

					
	 Its:
	 	 	 	 	 	 	 	 
					
	 Address:
	 	 1601 South Mopac Expressway
	 	 	 	 	 	 
	 	 	 Suite 100
	 	 	 	 	 	 Address

	 	 	 Austin, TX 78746
	 	 	 	 	 	 

  
 ATTACHMENTS:        2003 Equity Incentive Plan, as amended to the Date of Option Grant; Stock Option Agreement 
  

 SIGMATEL, INC. 
 NOTICE OF GRANT OF OUTSIDE DIRECTOR STOCK OPTION 
 (Initial Option) 
  
                                      (the
“Optionee”) has been granted an option (the “Option”) to purchase certain shares of Stock of SigmaTel, Inc. pursuant to the SigmaTel, Inc. 2003 Equity
Incentive Plan (the “Plan”), as follows: 
  

			
	 Date of Option Grant:
	  	____________________
		
	 Number of Option Shares:
	  	30,000
		
	 Exercise Price:
	  	$                                      
   per share
		
	 Initial Vesting Date:
	  	The first anniversary of the Date of Option Grant.
		
	 Option Expiration Date:
	  	The seventh anniversary of the Date of Option Grant.
		
	 Tax Status of Option:
	  	Nonstatutory Stock Option

  
 Vested Shares:
Except as provided in the Plan and Stock Option Agreement, the number of Vested Shares (disregarding any resulting fractional share) as of any date is determined by multiplying the Number of Option Shares by the “Vested
Percentage” determined as of such date as follows: 
  

				
	 	  	Vested Percentage

	 
	 Prior to Initial Vesting Date
	  	0	%
		
	 On Initial Vesting Date, provided the Optionee’s Service has not terminated prior to such date
	  	25	%
		
	 Plus:
 For each full year of the Optionee’s continuous Service from Initial Vesting Date until the Vested Percentage equals 100%,
an additional
	  	25	%

  
 By their signatures
below, the Company and the Optionee agree that the Option is governed by this Notice and by the provisions of the Plan and the Stock Option Agreement, both of which are attached to and made a part of this document. The Optionee acknowledges receipt
of copies of the Plan and the Stock Option Agreement, represents that the Optionee has read and is familiar with their provisions, and hereby accepts the Option subject to all of their terms and conditions. 
  

									
	 SIGMATEL, INC.
	 	 	 	 	 	 OPTIONEE

					
	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 Signature

					
	 Its:
	 	 	 	 	 	 	 	 
					
	 Address:
	 	 1601 South Mopac Expressway 
	 	 	 	 	 	 
	 	 	 Suite 100
	 	 	 	 	 	 Address

	 	 	 Austin, TX 78746
	 	 	 	 	 	 

  
 ATTACHMENTS:        2003 Equity Incentive Plan, as amended to the Date of Option Grant; Stock Option Agreement 
  

 SIGMATEL, INC. 
 NOTICE OF GRANT OF OUTSIDE DIRECTOR STOCK OPTION 
 (Annual Option) 
  
                                       
   (the “Optionee”) has been granted an option (the “Option”) to purchase certain shares of Stock of SigmaTel, Inc. pursuant to the SigmaTel, Inc. 2003
Equity Incentive Plan (the “Plan”), as follows: 
  

			
	 Date of Option Grant:
	  	____________________
		
	 Number of Option Shares:
	  	10,000
		
	 Exercise Price:
	  	$                                      
   per share
		
	 Initial Vesting Date:
	  	 The first anniversary of the Date of Option Grant.

		
	 Option Expiration Date:
	  	The seventh anniversary of the Date of Option Grant.
		
	 Tax Status of Option:
	  	Nonstatutory Stock Option

  
 Vested Shares:
Except as provided in the Plan and Stock Option Agreement, the number of Vested Shares (disregarding any resulting fractional share) as of any date is determined by multiplying the Number of Option Shares by the “Vested
Percentage” determined as of such date as follows: 
  

				
	 	  	Vested Percentage

	 
	 Prior to Initial Vesting Date
	  	0	%
		
	 On Initial Vesting Date, provided the Optionee’s Service has not terminated prior to such date
	  	25	%
		
	 Plus:
 For each full year of the Optionee’s continuous Service from Initial Vesting Date until the Vested Percentage equals 100%,
an additional
	  	25	%

  
 By their signatures
below, the Company and the Optionee agree that the Option is governed by this Notice and by the provisions of the Plan and the Stock Option Agreement, both of which are attached to and made a part of this document. The Optionee acknowledges receipt
of copies of the Plan and the Stock Option Agreement, represents that the Optionee has read and is familiar with their provisions, and hereby accepts the Option subject to all of their terms and conditions. 
  

									
	 SIGMATEL, INC.
	 	 	 	 	 	 OPTIONEE

					
	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 Signature

					
	 Its:
	 	 	 	 	 	 	 	 
					
	 Address:
	 	 1601 South Mopac Expressway
	 	 	 	 	 	 
	 	 	 Suite 100
	 	 	 	 	 	 Address

	 	 	 Austin, TX 78746
	 	 	 	 	 	 

  

	ATTACHMENTS:        2003	Equity Incentive Plan, as amended to the Date of Option Grant; Stock Option Agreement

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