Document:

exv10w4

Exhibit 10.4

QLOGIC CORPORATION

1998 EMPLOYEE STOCK PURCHASE PLAN

(Amended and Restated Effective February 10, 2011)

     This 1998 EMPLOYEE STOCK PURCHASE PLAN (the “Plan”) was established by QLOGIC CORPORATION, a
Delaware corporation, on the 9th day of April, 1998 and became effective on the
“Effective Date.” The Plan is hereby amended and restated in its entirety as set forth herein,
effective as of February 10, 2011.

ARTICLE 1

PURPOSE OF THE PLAN

     1.1 Purpose. The Company has determined that it is in its best interest to provide
incentives to attract and retain employees and to increase employee morale by providing a program
through which employees of the Company, and of such of the Company’s Subsidiaries as the Company’s
Board of Directors may from time to time designate (each a “Designated Subsidiary,” and
collectively, “Designated Subsidiaries”) may acquire a proprietary interest in the Company through
the purchase of shares of the common stock of the Company (“Company Stock”). The Plan is hereby
established by the Company to permit employees to subscribe for and purchase directly from the
Company shares of the Company Stock at a discount from the market price, and to pay the purchase
price in installments by payroll deductions. The Plan is intended to qualify as an “employee stock
purchase plan” under Section 423 of the Internal Revenue Code of 1986, as amended from time to time
(the “Code”). The provisions of the Plan are to be construed in a manner consistent with the
requirements of Section 423 of the Code. The Plan is not intended to be an employee benefit plan
under the Employee Retirement Income Security Act of 1974, and therefore is not required to comply
with that Act.

ARTICLE 2

DEFINITIONS

     2.1 Administrator. “Administrator” shall refer to the committee of the Board of
Directors of the Company appointed to administer the Plan, and if no such committee has been
appointed, the term Administrator shall mean the Board of Directors.

     2.2 Company. “Company” means QLogic Corporation, a Delaware corporation.

     2.3 Compensation. “Compensation” includes salary, annual bonus/incentive paid in
cash, annual profit sharing, overtime, lead premium, commissions and shift differential, but
expressly excludes other forms of compensation such as relocation, housing, car allowances, phone
allowances, sign-on bonuses, referral bonuses and non-cash incentives.

     2.4 Effective Date. “Effective Date” means November 2, 1998.

     2.5 Employee. “Employee” means each person currently employed by the Company or any
of its Designated Subsidiaries.

 

 

     2.6 Grant Date. “Grant Date” means the first day of each Offering Period (February 1,
May 1, August 1 and November 1) under the Plan.

     2.7 Offering Period. “Offering Period” means the three-month periods from February 1
through April 30, May 1 through July 31, August 1 through October 31, and November 1 through
January 31 of each calendar year.

     2.8 5% Owner. “5% Owner” means an Employee who, immediately after the grant of any
rights under the Plan, would own stock (within the meaning of Section 423(b)(3) of the Code)
possessing 5% or more of the total combined voting power or value of all classes of stock of the
Company, or of any Parent, or of any Subsidiary. For purposes of this Section, the ownership
attribution rules of Section 424(d) of the Code shall apply, and stock which the Employee may
purchase under outstanding options shall be treated as stock owned by the Employee.

     2.9 Parent. “Parent” means any corporation (other than the Company) in an unbroken
chain of corporations ending with the Company in which each corporation (other than the Company)
owns shares possessing 50% or more of the total combined voting power of all classes of shares in
one or more of the other corporations in the chain.

     2.10 Participant. “Participant” means an Employee who has satisfied the eligibility
requirements of Section 3.1 and has become a participant in the Plan in accordance with Section
3.2.

     2.11 Purchase Date. “Purchase Date” means the last day of each Offering Period (April
30, July 31, October 31, or January 31).

     2.12 Subsidiary. “Subsidiary” means any corporation (other than the Company) in an
unbroken chain of corporations (beginning with the Company) in which each corporation (other than
the last corporation) owns shares possessing 50% or more of the total combined voting power of all
classes of shares in one or more of the other corporations in the chain.

ARTICLE 3

ELIGIBILITY AND PARTICIPATION

     3.1 Eligibility. Each Employee of the Company, or any Designated Subsidiary, whose
customary employment is for more than 20 hours per week and more than five months in a calendar
year may become a Participant in the Plan on the Grant Date coincident with or next following the
Employee’s satisfaction of the requirements of Section 3.2.

     3.2 Participation. An Employee who has satisfied the eligibility requirements of
Section 3.1 may become a Participant in the Plan upon his completion and delivery to the
Administrator of the Company of a stock purchase agreement provided by the Company (the “Stock
Purchase Agreement”) authorizing payroll deductions. Payroll deductions for a Participant shall
commence on the Grant Date coincident with or next following the filing of the Participant’s Stock
Purchase Agreement and shall remain in effect until revoked by the Participant by the filing of a
notice of
withdrawal from the Plan under Article 8 or by the filing of a new Stock Purchase Agreement
providing for a change in the Participant’s payroll deduction rate under Section 5.2.

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     3.3 Special Rules. Under no circumstances shall:

          a. an option to purchase Company Stock under the Plan be granted to a Participant if the
exercise of such option would cause the Participant to be a 5% Owner;

          b. an option to purchase Company Stock under the Plan be granted to a Participant if such
option would cause the Participant to have rights to purchase Company Stock under the Plan (and
under any other employee stock purchase plan of the Company, any Parent or any Subsidiary which is
qualified under Section 423 of the Code) which accrue at a rate which exceeds $25,000 of the fair
market value of the Company Stock (determined at the time the right to purchase such Company Stock
is granted, before giving effect to any discounted purchase price under any such plan) for each
calendar year in which such right is outstanding at any time, as this rule is applied under Section
423 of the Code and the rules and regulations promulgated thereunder; or

          c. the number of shares of Company Stock purchasable by a Participant in any Offering Period
exceed 10,000 shares, subject to periodic adjustments under Section 10.4.

For purposes of the foregoing, a right to purchase Company Stock accrues when it first becomes
exercisable during the calendar year. If any amount which exceeds the limits set forth in this
Section 3.3 remains in the Participant’s Account after the exercise of the Participant’s option on
the Purchase Date, such amount shall be refunded to the Participant as soon as administratively
practicable after such date.

ARTICLE 4

OFFERING PERIODS

     4.1 Offering Periods. The Plan shall provide for Offering Periods commencing on each
Grant Date and terminating on the next following Purchase Date.

ARTICLE 5

PAYROLL DEDUCTIONS

     5.1 Participant Election. Upon completion of the Stock Purchase Agreement, each
Participant shall designate the amount of payroll deductions to be made from his or her paycheck to
purchase Company Stock under the Plan. The amount of payroll deductions shall be designated in
whole percentages of Compensation, not to exceed a maximum of 10%, which maximum percentage may be
increased or decreased from time to time in the discretion of the Administrator effective with the
Offering Period next commencing after the date of such increase or decrease, but in no event shall
the maximum amount be increased to an amount in excess of 15% of Compensation. The amount so
designated upon the Stock Purchase Agreement shall be effective as of the next Grant Date and shall
continue in effect for the Offering Period commencing on such Grant Date and, unless otherwise
expressly provided by the Administrator, all subsequent Offering Periods until the
Participant is no longer eligible to participate in the Plan or terminates or alters such
Stock Purchase Agreement in accordance with Section 5.2 below.

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     5.2 Changes in Election. Any Participant may change any election (increase or
decrease the rate of payroll deductions) under this Section one time during any Offering Period by
completing and delivering to the Administrator a new Stock Purchase Agreement setting forth the
desired change at least 15 days prior to the end of the Offering Period. A Participant may
terminate participation in the Plan at any time prior to the close of an Offering Period as
provided in Article 8. A Participant may also terminate payroll deductions and have accumulated
deductions for the then current Offering Period applied to the purchase of Company Stock as of the
Purchase Date for that Offering Period by completing and delivering to the Administrator a new
Stock Purchase Agreement setting forth the desired change. Any change under this Section shall
become effective on the next payroll period (to the extent practical under the Company’s payroll
practices) following the delivery of the new Stock Purchase Agreement.

     5.3 Participant Accounts. The Company shall establish and maintain a separate account
(“Account”) for each Participant. The amount of each Participant’s payroll deductions shall be
credited to his Account. No interest will be paid or allowed on amounts credited to a
Participant’s Account. All payroll deductions received by the Company under the Plan are general
corporate assets of the Company and may be used by the Company for any corporate purpose. The
Company is not obligated to segregate such payroll deductions.

ARTICLE 6

GRANT OF OPTION

     6.1 Option to Purchase Shares. On each Grant Date, each Participant shall be granted
an option to purchase at the price determined under Section 6.2 that number of whole shares of
Company Stock that can be purchased or issued by the Company based upon that price with the amounts
held in his Account, subject to the limits set forth in Section 3.3. In the event that there are
amounts held in a Participant’s Account that are not used to purchase Company Stock (except for
amounts required to be returned under Section 3.3), such amounts shall remain in the Participant’s
Account and shall be eligible to purchase Company Stock in the next subsequent Offering Period.

     6.2 Purchase Price. The purchase price for any Offering Period shall be the lesser of:

          a. 85% of the Fair Market Value of Company Stock on the Grant Date; or

          b. 85% of the Fair Market Value of Company Stock on the Purchase Date.

     6.3 Fair Market Value. “Fair Market Value” shall mean the value of one share of
Company Stock, determined as follows:

          a. If the Company Stock is then listed or admitted to trading on a national securities
exchange, the Fair Market Value shall be the closing sale price of the Company Stock on the date of
valuation on the principal national securities exchange on which the Company Stock is then listed
or admitted to trading, or, if there is no trading of the Company Stock on such date, the
Fair Market Value shall be the closing sale price of the Company Stock on such principal
national securities exchange on the next preceding day on which there was trading in the Company
Stock.

          b. If the Company Stock is not listed or admitted to trading on a national securities exchange
on the valuation date, the Fair Market Value shall be determined by the

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Administrator in good faith
using any reasonable method of valuation, which determination shall be conclusive and binding on
all interested parties.

ARTICLE 7

PURCHASE OF STOCK

     7.1 Exercise of Option.

          a. On each Purchase Date, the Participant will be deemed to exercise the option expiring on
that Purchase Date. Notwithstanding the above, a Participant may direct the Company not to
purchase Company Stock on the Purchase Date in accordance with Section 8.1, in which case any
amount in the Participant’s Account shall be refunded to the Participant as provided in Section
8.1.

          b. Upon exercise of an option, the Plan shall purchase on behalf of each Participant the
maximum number of whole shares of Company Stock subject to such option at the option price
determined under Section 6.2 above as can be purchased with the amounts held in each Participant’s
Account. Any amounts remaining in a Participant’s Account as a result of the requirement that no
fractional shares may be purchased shall be held in the Participant’s Account and carried forward
for the rest of the Offering Period or to the next Offering Period.

     7.2 Delivery of Company Stock. The time of issuance and delivery of the shares may be
postponed for such period as may be necessary to comply with the registration requirements under
the Securities Act of 1933, as amended, the listing requirements of any securities exchange on
which the Company Stock may then be listed, or the requirements under other laws or regulations
applicable to the issuance or sale of such shares.

ARTICLE 8

WITHDRAWAL

     8.1 In Service Withdrawals. At any time prior to the Purchase Date of an Offering
Period (subject to any deadline the Administrator may establish for the relevant Offering Period
prior to the Grant Date for such Offering Period), any Participant may withdraw the amounts held in
his Account by executing and delivering to the Administrator a written notice of withdrawal on the
form provided by the Company. In such a case, the entire balance of the Participant’s Account
shall be paid to the Participant, without interest, as soon as is practicable. Upon such
notification, the Participant shall cease to participate in the Plan for the remainder of the
Offering Period in which the notice is given. A reduction in contributions to zero during any
Offering Period with an instruction to hold the funds in a Participant’s Account to purchase shares
on the Purchase Date of the Offering Period shall not be deemed a withdrawal. Any Employee who has
withdrawn under this Section shall be excluded from participation in the Plan for the remainder of
the Offering Period in which the
withdrawal occurred and the next succeeding Offering Period, but may then be reinstated as a
Participant thereafter by executing and delivering a new Stock Purchase Agreement to the
Administrator.

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     8.2 Termination of Employment.

          a. In the event that a Participant’s employment with the Company terminates for any reason,
the Participant shall cease to participate in the Plan on the date of termination. As soon as is
practical following the date of termination, the entire balance of the Participant’s Account shall
be paid to the Participant or his beneficiary in cash, without interest. For purposes of the Plan,
if a Designated Subsidiary ceases to be a Subsidiary of the Company, each person employed by that
Designated Subsidiary will be deemed to have terminated employment for purposes of the Plan, unless
the person continues as an employee of the Company or another Designated Subsidiary.

          b. A Participant may file a written designation of a beneficiary who is to receive any shares
of Company Stock purchased under the Plan or any cash from the Participant’s Account in the event
of his or her death subsequent to a Purchase Date, but prior to delivery of such shares or cash.
In addition, a Participant may file a written designation of a beneficiary who is to receive any
cash from the Participant’s Account under the Plan in the event of his death prior to a Purchase
Date under paragraph (a) above. If a Participant is married and the designated beneficiary is not
solely his or her spouse, spousal consent shall be required for such designation to be effective
unless it is established (to the satisfaction of the Administrator or its delegate) that there is
no spouse or that the spouse cannot be located.

          c. Any beneficiary designation under paragraph (b) above may be changed by the Participant at
any time by written notice. In the event of the death of a Participant, the Administrator may rely
upon the most recent beneficiary designation it has on file as being the appropriate beneficiary.
In the event of the death of a Participant where no valid beneficiary designation exists or the
beneficiary has predeceased the Participant, the Administrator shall deliver any cash or shares of
Company Stock to the executor or administrator of the estate of the Participant, or if no such
executor or administrator has been appointed to the knowledge of the Administrator, the
Administrator, in its sole discretion, may deliver such shares of Company Stock or cash to the
spouse or any one or more dependents or relatives of the Participant, or if no spouse, dependent or
relative is known to the Administrator, then to such other person as the Administrator may
designate.

ARTICLE 9

PLAN ADMINISTRATION

     9.1 Plan Administration.

          a. Authority to control and manage the operation and administration of the Plan shall be
vested in the Board of Directors (the “Board”) for the Company, or a committee (“Committee”)
thereof. Members of the Committee may be appointed from time to time by, and shall serve at the
pleasure of, the Board. As used herein, the term “Administrator” shall mean the Board or, with
respect to any matter as to which responsibility has been delegated to the Committee, the term
Administrator shall mean the Committee. The initial Administrator of the Plan shall be the
Compensation Committee of the Board of Directors. The Administrator shall have all powers
necessary to supervise the administration of the Plan and control its operations.

          b. In addition to any powers and authority conferred on the Administrator elsewhere in the
Plan or by law, the Administrator shall have the following powers and authority:

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               (i) To designate agents to carry out responsibilities relating to the Plan;

               (ii) To administer, interpret, construe and apply this Plan and to answer all questions which
may arise or which may be raised under this Plan by a Participant, his or her beneficiary or any
other person whatsoever;

               (iii) To establish rules and procedures from time to time for the conduct of its business and
for the administration and effectuation of its responsibilities under the Plan; and

               (iv) To perform or cause to be performed such further acts as it may deem to be necessary,
appropriate, or convenient for the operation of the Plan.

          c. Any action taken in good faith by the Administrator in the exercise of authority conferred
upon it by this Plan shall be conclusive and binding upon a Participant and his beneficiaries. All
discretionary powers conferred upon the Administrator shall be absolute.

     9.2 Limitation on Liability. No Employee of the Company nor member of the Board or
Committee shall be subject to any liability with respect to his or her duties under the Plan unless
the person acts fraudulently or in bad faith. To the extent permitted by law, the Company shall
indemnify each member of the Board or Committee, and any other Employee of the Company with duties
under the Plan who was or is a party, or is threatened to be made a party, to any threatened,
pending or completed proceeding, whether civil, criminal, administrative, or investigative, by
reason of the person’s conduct in the performance of his duties under the Plan.

     9.3 Sub-Plans. The Administrator has discretion to adopt any rules regarding
administration of the Plan to conform to local laws. Without limiting the generality of the
foregoing, the Administrator is specifically authorized to adopt rules and procedures regarding
handling of payroll deductions, payment of interest and handling of share certificates which vary
according to local requirements. The Administrator has the authority to suspend or limit
participation in the Plan by employees of any particular Subsidiary of the Company for any reason,
including administrative or economic reasons. The Administrator may also adopt rules, procedures
or sub-plans applicable to particular Subsidiaries or locations, which sub-plans may be designed to
be outside the scope of Section 423 of the Code.

     9.4 Reliance on Experts Delegation. In making any determination or in taking or not
taking any action under the Plan, the Committee or the Board, as the case may be, may obtain and
may rely upon the advice of experts, including professional advisors to the Company. No director,
officer or agent of the Company or any Designated Subsidiary shall be liable for any such action or
determination taken or made or omitted in good faith. The Administrator may delegate ministerial,
non-discretionary functions to individuals who are officers or employees of the Company or a
Designated Subsidiary.

ARTICLE 10

COMPANY STOCK

     10.1 Limitations on Purchase of Shares. The maximum number of shares of Company Stock
that shall be made available for sale under the Plan shall be 6,000,000 shares, subject to
adjustment under Section 10.4 below. The shares of Company Stock to be sold to Participants under

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the Plan will be issued by the Company. If the total number of shares of Company Stock that would
otherwise be issuable pursuant to rights granted pursuant to Section 6.1 of the Plan at the
Purchase Date exceeds the number of shares then available under the Plan, the Administrator shall
make a pro rata allocation of the shares remaining available in as uniform and equitable manner as
is practicable. In such event, the Administrator shall give written notice of such reduction of
the number of shares to each Participant affected thereby and any unused payroll deductions shall
be returned to such Participant if necessary.

     10.2 Voting Company Stock. The Participant will have no interest or voting right in
shares to be purchased under Section 6.1 of the Plan until such shares have been actually delivered
to and held of record by the Participant.

     10.3 Registration of Company Stock. Shares to be delivered to a Participant under the
Plan will be registered in the name of the Participant unless designated otherwise by the
Participant.

     10.4 Changes in Capitalization of the Company. Subject to any required action by the
stockholders of the Company, the number of shares of Company Stock covered by each right under the
Plan which has not yet been exercised and the number of shares of Company Stock which have been
authorized for issuance under the Plan but have not yet been placed under rights or which have been
returned to the Plan upon the cancellation of a right, as well as the purchase price per share of
Company Stock covered by each right under the Plan which has not yet been exercised, shall be
proportionately adjusted for any increase or decrease in the number of issued shares of Company
Stock resulting from a stock split, stock dividend, spin-off, reorganization, recapitalization,
merger, consolidation, exchange of shares or the like. Such adjustment shall be made by the
Administrator, whose determination in that respect shall be final, binding and conclusive. Except
as expressly provided herein, no issue by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no adjustment by reason
thereof shall be made with respect to, the number or price of shares of Company Stock subject to
any option granted hereunder.

     10.5 Merger of Company. In the event that the Company at any time proposes to merge
into, consolidate with or enter into any other reorganization pursuant to which the Company is not
the surviving entity (including the sale of substantially all of its assets or a “reverse” merger
in which the Company is the surviving entity), the Plan and each then outstanding option hereunder
shall terminate, unless provision is made in writing in connection with such transaction for the
continuance of the Plan and for the assumption of outstanding options theretofore granted, or the
substitution for such outstanding options of new options covering the shares of a successor
corporation, with appropriate adjustments as to number and kind of shares and prices, in which
event the Plan and the outstanding options theretofore granted or the new options substituted
therefor, shall continue in the manner and under the terms so provided. If such provision is not
made in such transaction for the continuance of the Plan and the assumption of the outstanding
options theretofore granted or the substitution for such outstanding options of new options
covering the shares of a
successor corporation, then the Administrator shall cause written notice of the proposed
transaction to be given to the persons holding then-outstanding options not less than 10 days prior
to the anticipated effective date of the proposed transaction, and, concurrent with the effective
date of the proposed transaction, such outstanding options shall be exercised automatically in
accordance with Section 7.1 as if such effective date were the Purchase Date of the applicable
Offering Period unless a Participant withdraws from the Plan as provided in Section 8.1. The
Administrator may provide in each case that the transactions contemplated by this Section 10.5 are
contingent upon the consummation of the

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proposed merger, consolidation or other reorganization
event and provide for the reinstatement of the Plan and outstanding options and the continuation of
the Offering Period then in effect in the event that such consummation does not occur.

ARTICLE 11

MISCELLANEOUS MATTERS

     11.1 Amendment and Termination. The Plan shall terminate on December 31, 2018. Since
future conditions affecting the Company cannot be anticipated or foreseen, the Company reserves the
right to amend, modify, or terminate the Plan at any time. Upon termination of the Plan, all
benefits shall become payable immediately. Notwithstanding the foregoing, no such amendment or
termination shall affect rights previously granted, nor may an amendment make any change in any
right previously granted which adversely affects the rights of any Participant without the
Participant’s consent. In addition, no amendment may be made without prior approval of the
stockholders of the Company if such amendment would:

          a. Increase the number of shares of Company Stock that may be issued under the Plan;

          b. Materially modify the requirements as to eligibility for participation in the Plan; or

          c. Materially increase the benefits which accrue to Participants under the Plan.

     11.2 Benefits Not Alienable. Benefits under the Plan may not be assigned or
alienated, whether voluntarily or involuntarily. Any attempt at assignment, transfer, pledge or
other disposition shall be without effect, except that the Company may treat such act as an
election to withdraw funds in accordance with Article 8.

     11.3 No Enlargement of Employee Rights. This Plan is strictly a voluntary undertaking
on the part of the Company and shall not be deemed to constitute a contract between the Company and
any Employee or to be consideration for, or an inducement to, or a condition of, the employment of
any Employee. Nothing contained in the Plan shall be deemed to give the right to any Employee to
be retained in the employ of the Company or to interfere with the right of the Company to discharge
any Employee at any time.

     11.4 Governing Law. To the extent not preempted by Federal law, all legal questions
pertaining to the Plan shall be determined in accordance with the laws of the State of California.

     11.5 Non-business Days. When any act under the Plan is required to be performed on a
day that falls on a Saturday, Sunday or legal holiday, that act shall be performed on the next
succeeding day which is not a Saturday, Sunday or legal holiday. Notwithstanding the above, Fair
Market Value shall be determined in accordance with Section 6.3.

     11.6 Compliance With Securities Laws. The Plan, the granting of options under the
Plan and the offer, issuance and delivery of shares of Company Stock are subject to compliance with
all applicable federal and state laws, rules and regulations (including but not limited to state
and federal securities laws) and to such approvals by any listing, regulatory or governmental
authority as may, in

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the opinion of counsel for the Company, be necessary or advisable in
connection therewith. The person acquiring any securities under the Plan will, if requested by the
Company and as a condition precedent to the exercise of his or her option, provide such assurances
and representations to the Company as the Administrator may deem necessary or desirable to assure
compliance with all applicable legal requirements.

     11.7 Other Company Benefit and Compensation Programs. Payments and other benefits
received by an Employee pursuant to the Plan shall not be deemed a part of the Employee’s
compensation for purposes of the determination of benefits under any other employee welfare or
benefit plans or arrangements, if any, provided by the Company or any Subsidiary, except where the
Administrator expressly otherwise provides or authorizes in writing.

10exv10w6

Exhibit 10.6

QLOGIC CORPORATION

2005 PERFORMANCE INCENTIVE PLAN

TERMS AND CONDITIONS OF NONQUALIFIED STOCK OPTION

1. General.

     These Terms and Conditions of Nonqualified Stock Option (these “Terms”) apply to a particular
stock option (“Option”) to purchase shares of Common Stock of QLogic Corporation (the
“Corporation”) if incorporated by reference in the Notice of Grant Agreement (“Grant Notice”)
corresponding to that particular grant. The recipient of the Option identified in the Grant Notice
is referred to as the “Grantee.” The per share exercise price of the Option as set forth on the
Grants tab on the CEFS website (www.ubs.com/cefs/qlgc) is referred to as the “Exercise
Price.” The effective date of grant of the Option as set forth on the Grants tab on the CEFS
website is referred to as the “Award Date.” The Option was granted under and subject to the QLogic
Corporation 2005 Performance Incentive Plan (the “Plan”) and these Terms. Capitalized terms are
defined in the Plan if not defined herein. The Option has been granted to the Grantee in addition
to, and not in lieu of, any other form of compensation otherwise payable or to be paid to the
Grantee. The Grant Notice and these Terms are collectively referred to as the “Option Agreement”
applicable to the Option, or this “Option Agreement.”

2. Vesting; Limits on Exercise; Incentive Stock Option Status.

     Subject to adjustment under Section 7.1 of the Plan and further subject to early termination
under Section 5 of these Terms and Section 7.4 of the Plan, the Option shall become vested as
follows: (1) 25% of the total number of shares of Common Stock subject to the Option shall vest on
the first anniversary of the Award Date; and (2) an additional 6.25% of the total number of shares
of Common Stock subject to the Option shall vest every three months thereafter until the Option is
vested as to all of the shares of Common Stock subject thereto. The Option may be exercised only
to the extent the Option is vested and exercisable.

	 	•	 	Cumulative Exercisability. To the extent that the Option is vested and
exercisable, the Grantee has the right to exercise the Option (to the extent not
previously exercised), and such right shall continue, until the expiration or earlier
termination of the Option.
	 
	 	•	 	No Fractional Shares. Fractional share interests shall be disregarded, but
may be cumulated.
	 
	 	•	 	Minimum Exercise. No fewer than 100 shares of Common Stock (subject to
adjustment under Section 7.1 of the Plan) may be purchased at any one time, unless the
number purchased is the total number at the time exercisable under the Option.
	 
	 	•	 	Nonqualified Stock Option. The Option is a nonqualified stock option and is
not, and shall not be, an incentive stock option within the meaning of Section 422 of
the Code.

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3. Continuance of Employment/Service Required; No Employment/Service Commitment.

     The vesting schedule requires continued employment or service through each applicable vesting
date as a condition to the vesting of the applicable installment of the Option and the rights and
benefits under this Option Agreement. Employment or service for only a portion of the vesting
period, even if a substantial portion, will not entitle the Grantee to any proportionate vesting or
avoid or mitigate a termination of rights and benefits upon or following a termination of
employment or services as provided in Section 5 below or under the Plan.

     Nothing contained in this Option Agreement or the Plan constitutes a continued employment or
service commitment by the Corporation or any of its Subsidiaries, affects the Grantee’s status, if
he or she is an employee, as an employee at will who is subject to termination without cause,
confers upon the Grantee any right to remain employed by or in service to the Corporation or any
Subsidiary, interferes in any way with the right of the Corporation or any Subsidiary at any time
to terminate such employment or service, or affects the right of the Corporation or any Subsidiary
to increase or decrease the Grantee’s other compensation.

4. Manner of Exercise.

     4.1 Method of Exercise of Option.

     The Corporation has established a web — based system for managing and exercising Options.
Currently, UBS Financial Services, Inc. manages Option exercises. In order to exercise an Option,
the Grantee must contact UBS either by logging on to the UBS OneSource website
(http://www.ubs.com/onesource/qlgc) or by calling the UBS Call Center at 1-866-756-4421. UBS will
request from the Grantee information regarding the Option to be exercised, the method of payment of
the exercise price and the order type. In order to comply with the terms of the Plan, the Grantee
also must deliver:

	 	•	 	payment in full for the Exercise Price of the shares to be purchased in cash, check
or by electronic funds transfer, or utilizing the UBS same day sale procedures;
	 
	 	•	 	any written statements or agreements required pursuant to Section 8.1 of the Plan;
and
	 
	 	•	 	satisfaction of the tax withholding provisions of Section 8.5 of the Plan.

The Administrator also may, but is not required to, authorize a non-cash payment alternative by
notice and third party payment in such manner as may be authorized by the Administrator. For other
methods of payment for exercise, contact the Administrator.

     4.2 Responsibility for Taxes. The ultimate liability for any and all tax, social insurance
and payroll tax withholding legally payable by an employee under applicable law (including without
limitation laws of foreign jurisdictions)(“Tax-Related Items”) is and remains Grantee’s
responsibility and liability and the Corporation (a) makes no representations or undertakings
regarding the treatment of any Tax-Related Items in connection with any aspect of the Option,
including the grant, vesting or exercise of the Option and the subsequent sale of the shares of
Common Stock subject to the Option; and (b) does not commit to structure the terms of

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the grant or any aspect of the Option to reduce or eliminate Grantee’s liability for
Tax-Related Items.

          Prior to exercise of the Option, Grantee shall pay or make adequate arrangements satisfactory
to the Administrator to satisfy all withholding obligations of the Corporation. In this regard,
Grantee authorizes the Corporation to withhold all applicable Tax-Related Items legally payable by
Grantee from his or her wages or other cash compensation paid to Grantee by the Corporation or from
proceeds of sale. Alternatively, or in addition, if permissible under local law, the Corporation
may sell or arrange for the sale of shares of Common Stock that Grantee is due to acquire to meet
the minimum withholding obligations for Tax-Related Items. Finally, Grantee shall pay to the
Corporation any amount of any Tax-Related Items that the Corporation may be required to withhold as
a result of Grantee’s participation in the Plan or Grantee’s purchase of shares of Common Stock
that cannot be satisfied by the means previously described.

5. Early Termination of Option.

     5.1 Expiration Date. Subject to earlier termination as provided below in this Section 5, the
Option will terminate ten years after the Award Date, including the Award Date (the “Expiration
Date”). For example, if an Option is awarded on February 15, 2010, assuming no earlier termination
as set forth in this Section 5, the Option will terminate at the close of business on February 14,
2020.

     5.2 Possible Termination of Option upon Change in Control. The Option is subject to
termination in connection with a Change in Control Event or certain similar reorganization events
as provided in Section 7.4 of the Plan.

     5.3 Termination of Option upon a Termination of Grantee’s Employment or Services. Subject to
earlier termination on the Expiration Date of the Option or pursuant to Section 5.2 above, if the
Grantee ceases to be employed by or ceases to provide services to the Corporation or a Subsidiary,
the following rules shall apply (the last day that the Grantee is employed by or provides services
to the Corporation or a Subsidiary is referred to as the Grantee’s “Severance Date”):

	 	•	 	other than as expressly provided below in this Section 5.3, (a) the Grantee will
have until the date that is 3 months after his or her Severance Date (including the
Severance Date) to exercise the Option (or portion thereof) to the extent that it was
vested on the Severance Date (e.g. — if the Severance Date as February 15, 2010, the
three-month period would expire at the close of business on May 14, 2010), (b) the
Option, to the extent not vested on the Severance Date, shall terminate on the
Severance Date, and (c) the Option, to the extent exercisable for the 3-month period
following the Severance Date and not exercised during such period, shall terminate at
the close of business on the last day of the 3-month period;
	 
	 	•	 	if the termination of the Grantee’s employment or services is the result of the
Grantee’s death or Total Disability (as defined below), (a) the Grantee (or his or her
beneficiary or personal representative, as the case may be) will have until the date
that is 12 months after the Grantee’s Severance Date (including the Severance Date)

3

 

	 	 	 	to exercise the Option (e.g. — if the Severance Date as February 15, 2010, the 12-month
period would expire at the close of business on February 14, 2011), (b) the Option, to
the extent not vested on the Severance Date, shall terminate on the Severance Date, and
(c) the Option, to the extent exercisable for the 12-month period following the
Severance Date and not exercised during such period, shall terminate at the close of
business on the last day of the 12-month period;
	 
	 	•	 	if the Grantee’s employment or services are terminated by the Corporation or a
Subsidiary for Cause (as defined below), the Option (whether vested or not) shall
terminate on the Severance Date.

     For purposes of the Option, “Total Disability” means a “permanent and total disability”
(within the meaning of Section 22(e)(3) of the Code or as otherwise determined by the
Administrator).

     For purposes of the Option, “Cause” means that the Grantee:

	 	(1)	 	has been negligent in the discharge of his or her duties to the Corporation or
any of its Subsidiaries, has refused to perform stated or assigned duties or is
incompetent in or (other than by reason of a disability or analogous condition)
incapable of performing those duties;
	 
	 	(2)	 	has been dishonest or committed or engaged in an act of theft, embezzlement or
fraud, a breach of confidentiality, an unauthorized disclosure or use of inside
information, customer lists, trade secrets or other confidential information; has
breached a fiduciary duty, or willfully and materially violated any other duty, law,
rule, regulation or policy of the Corporation, any of its Subsidiaries or any affiliate
of the Corporation or any of its Subsidiaries; or has been convicted of a felony or
misdemeanor (other than minor traffic violations or similar offenses);
	 
	 	(3)	 	has materially breached any of the provisions of any agreement with the
Corporation, any of its Subsidiaries or any affiliate of the Corporation or any of its
Subsidiaries; or
	 
	 	(4)	 	has engaged in unfair competition with, or otherwise acted intentionally in a
manner injurious to the reputation, business or assets of, the Corporation, any of its
Subsidiaries or any affiliate of the Corporation or any of its Subsidiaries; has
improperly induced a vendor or customer to break or terminate any contract with the
Corporation, any of its Subsidiaries or any affiliate of the Corporation or any of its
Subsidiaries; or has induced a principal for whom the Corporation, any of its
Subsidiaries or any affiliate of the Corporation or any of its Subsidiaries acts as
agent to terminate such agency relationship.

     In all events the Option is subject to earlier termination on the Expiration Date of the
Option or as contemplated by Section 5.2. The Administrator shall be the sole judge of whether the
Grantee continues to render employment or services for purposes of this Option Agreement.

4

 

6. Non-Transferability.

     The Option and any other rights of the Grantee under this Option Agreement or the Plan are
nontransferable and exercisable only by the Grantee, except as set forth in Section 5.7 of the
Plan.

7. Adjustment.

     The total number of shares of Common Stock subject to the Option, as well as the Exercise
Price of the Option, are subject to adjustment pursuant to Section 7.1 of the Plan.

8. Data Privacy Consent.

     Grantee explicitly and unambiguously consents to the collection, use and transfer, in
electronic or other form, of Grantee’s personal data as described in this document by and among, as
applicable, the Corporation, its Subsidiaries, or affiliates for the exclusive purpose of
implementing, administering and managing Grantee’s participation in the Plan.

     Grantee further understands that the Corporation, its Subsidiaries or affiliates hold certain
personal information about Grantee, including, but not limited to, Grantee’s name, home address and
telephone number, date of birth, social insurance number or other identification number, salary,
nationality, job title, any shares of stock held in the Corporation and details of all Options or
other entitlements to shares of Common Stock awarded, canceled, exercised, vested, unvested or
outstanding in Grantee’s favor, for the purpose of implementing, administering and managing the
Plan (“Data”). Grantee understands that Data may be transferred to any third parties assisting in
the implementation, administration and management of the Plan, that these recipients may be located
in Grantee’s country, or elsewhere, and that the recipient’s country may have different data
privacy laws and protections than Grantee’s country. Grantee authorizes the recipients to receive,
possess, use, retain and transfer the Data, in electronic or other form, for the purposes of
implementing, administering and managing Grantee’s participation in the Plan, including any
requisite transfer of such Data as may be required to a broker or other third party with whom
Grantee may elect to deposit any shares of Common Stock acquired upon exercise of the Option.
Grantee understands that Data will be held only as long as is necessary to implement, administer
and manage Grantee’s participation in the Plan. Grantee understands that he or she may, at any
time, view Data, request additional information about the storage and processing of Data, require
any necessary amendments to Data or withdraw the consents herein by contacting the Corporation’s
human resources department. Grantee understands that withdrawal of consent may affect Grantee’s
ability to exercise or realize benefits from the Option.

9. Nature of Grant.

     In accepting the grant of the Option, Grantee acknowledges that: (i) the Plan is established
voluntarily by the Corporation, it is discretionary in nature and it may be modified, suspended or
terminated by the Corporation at any time, as provided in the Plan and these Terms; (ii) the grant
of the Option is voluntary and occasional and does not create any contractual or other right to
receive future grants of stock options, or benefits in lieu of stock options even if stock options
have been granted repeatedly in the past; (iii) all decisions with respect to future grants will be
at the sole discretion of the Corporation; (iv) Grantee’s

5

 

participation in the Plan shall not create a right to further employment and shall not
interfere with the ability of the Corporation or its subsidiaries to terminate Grantee’s employment
relationship at any time with or without cause; (v) Grantee’s participation in the Plan is
voluntary; (vi) in the event that Grantee is not an employee of the Corporation, the Option grant
will not be interpreted to form an employment contract or relationship with the Corporation, and
furthermore, the Option grant will not be interpreted to form an employment contract with the
Corporation and any of its Subsidiaries or affiliates; (vii) the future value of the underlying
shares of Common Stock is unknown and cannot be predicted with certainty; (viii) if the underlying
shares of Common Stock do not increase in value, the Option will have no value; (ix) if Grantee
exercises his or her Option and obtains shares of Common Stock, the value of those shares of Common
Stock acquired upon exercise may increase or decrease in value, even below the Exercise Price; and
(x) no claim or entitlement to compensation or damages arises from termination of the Option or
diminution in value of the Option or shares of Common Stock acquired pursuant to the Option and
Grantee irrevocably releases the Corporation and its Subsidiaries and affiliates from any such
claim that may arise.

10. Clawback Policy.

     Notwithstanding anything else contained herein or in the Plan to the contrary, this Option
Agreement is subject to the Company’s clawback policy, as well as the “clawback” provisions of
applicable law, rules and regulations, as each may be adopted and in effect from time to time
(collectively, the “Clawback Policy”). The provisions of the Clawback Policy are in
addition to (and not in lieu of) any rights to repayment the Company may have under Section 304 of
the Sarbanes-Oxley Act of 2002 and other applicable laws.

11. Notices.

     Any notice to be given under the terms of this Option Agreement shall be in writing and
addressed to the Corporation at its principal office to the attention of the Secretary, and to the
Grantee at the address last reflected on the Corporation’s payroll records, or at such other
address as either party may hereafter designate in writing to the other. Any such notice shall be
delivered in person or shall be enclosed in a properly sealed envelope addressed as aforesaid,
registered or certified, and deposited (postage and registry or certification fee prepaid) in a
post office or branch post office regularly maintained by the United States Government. Any such
notice shall be given only when received, but if the Grantee is no longer employed by the
Corporation or a Subsidiary, shall be deemed to have been duly given five business days after the
date mailed in accordance with the foregoing provisions of this Section 10.

12. Plan.

     The Option and all rights of the Grantee under this Option Agreement are subject to the terms
and conditions of the Plan, incorporated herein by this reference. The Grantee agrees to be bound
by the terms of the Plan and this Option Agreement. The Grantee acknowledges having read and
understanding the Plan and this Option Agreement. Unless otherwise expressly provided in other
sections of this Option Agreement, provisions of the Plan that confer discretionary authority on
the Board or the Administrator do not and shall not be deemed to create any rights in the Grantee
unless such rights are expressly set forth herein or are otherwise

6

 

in the sole discretion of the Board or the Administrator so conferred by appropriate action of
the Board or the Administrator under the Plan after the date hereof.

13. Entire Agreement.

     This Option Agreement and the Plan together constitute the entire agreement and supersede all
prior understandings and agreements, written or oral, of the parties hereto with respect to the
subject matter hereof. The Plan and this Option Agreement may be amended pursuant to Section 8.6
of the Plan. Such amendment must be in writing and signed by the Corporation. The Corporation
may, however, unilaterally waive any provision hereof in writing to the extent such waiver does not
adversely affect the interests of the Grantee hereunder, but no such waiver shall operate as or be
construed to be a subsequent waiver of the same provision or a waiver of any other provision
hereof.

14. Governing Law.

     This Option Agreement shall be governed by and construed and enforced in accordance with the
laws of the State of Delaware without regard to conflict of law principles thereunder.

15. Effect of this Agreement.

     Subject to the Corporation’s right to terminate the Option pursuant to Section 7.4 of the
Plan, this Option Agreement shall be assumed by, be binding upon and inure to the benefit of any
successor or successors to the Corporation.

16. Section Headings.

     The section headings of this Option Agreement are for convenience of reference only and shall
not be deemed to alter or affect any provision hereof.

17. Acceptance.

     In accepting the grant of the Option, Grantee acknowledges receipt of a copy of the Plan, the
Grant Notice and these Terms. Grantee has read and understands the terms and provisions thereof,
and has accepted the Option subject to all terms and conditions of the Plan, the Grant Notice and
these Terms. Grantee acknowledges that there may be adverse tax consequences upon exercise of the
Option or disposition of the shares of Common Stock acquired upon exercise and that Grantee should
consult a tax adviser prior to such exercise or disposition.

7

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