Document:

Amended and Restated Strategic Alliance Agreement, dated as of August 27, 2003.

 Exhibit 4.6 
  

  
 AMENDED AND RESTATED 
 STRATEGIC ALLIANCE AGREEMENT 
  
  
 between 
  
  
 KOOKMIN BANK 
  
  
 and 
  
  
 ING BANK N.V. 
  
  
 Dated as of August 27, 2003 
  
  

 TABLE OF CONTENTS 
  

					
	 	  	Page

	 	  	ARTICLE I	  	 
	 	  	DEFINITIONS	  	 
			
	 Section 1.01.
	  	 Definitions
	  	1
			
	 Section 1.02.
	  	 General Interpretive Principles
	  	3
			
	 	  	ARTICLE II	  	 
	 	  	TERMINATION OF PRIOR STRATEGIC ALLIANCE
AGREEMENT; PREVAILING AGREEMENT	  	 
			
	 Section 2.01.
	  	 Termination of Prior Strategic Alliance Agreement
	  	4
			
	 Section 2.02.
	  	 Prevailing Agreement
	  	4
			
	 	  	ARTICLE III	  	 
	 	  	GOVERNANCE	  	 
			
	 Section 3.01.
	  	 Board Representation
	  	4
			
	 Section 3.02.
	  	 Vacancies
	  	5
			
	 Section 3.03.
	  	 Prior Notification
	  	5
			
	 Section 3.04.
	  	 Remuneration
	  	5
			
	 	  	ARTICLE IV	  	 
	 	  	REPRESENTATIONS AND WARRANTIES	  	 
			
	 Section 4.01.
	  	 Representations and Warranties of KB
	  	5
			
	 Section 4.02.
	  	 Representations and Warranties of ING
	  	6
			
	 	  	ARTICLE V	  	 
	 	  	EFFECTIVE DATE; TERM; TERMINATION	  	 
			
	 Section 5.01.
	  	 Effective Date; Term
	  	6
			
	 Section 5.02.
	  	 Termination of Agreement
	  	6
			
	 Section 5.03.
	  	 Consequences of Termination
	  	6
			
	 	  	ARTICLE VI	  	 
	 	  	INDEMNIFICATION	  	 
			
	 Section 6.01.
	  	 Indemnification by ING
	  	7
			
	 Section 6.01.
	  	 Indemnification by KB
	  	7
			
	 	  	ARTICLE VII	  	 
	 	  	MISCELLANEOUS	  	 
			
	Section 7.01.	  	Fees and Expenses	  	7
			
	Section 7.02.	  	Notices	  	7
			
	Section 7.03.	  	Entire Agreement; Amendment; Severability	  	7
			
	Section 7.04.	  	Counterparts	  	8
			
	Section 7.05.	  	Governing Law	  	8
			
	Section 7.06.	  	Arbitration	  	8
			
	Section 7.07.	  	Successors and Assigns	  	8
			
	Section 7.08.	  	No Third-Party Beneficiaries	  	8

  

 i 

 AMENDED AND RESTATED 
 STRATEGIC ALLIANCE AGREEMENT 
  
 THIS AMENDED AND RESTATED STRATEGIC ALLIANCE AGREEMENT (this “Agreement”), dated as of August 27, 2003, by and between Kookmin Bank, a company incorporated in Korea, with its principal office at 9-1,
Namdaemun-ro 2-ga, Jung-gu, Seoul, Korea (“KB”) and ING Bank N.V., a company incorporated in the Netherlands, with its registered office at Bijlmerplein 888, P.O. Box 810, 1000 BV, Amsterdam, the Netherlands
(“ING”). 
  
 W I T N E S S E T H:

  
 WHEREAS, KB and ING entered into that certain
Strategic Alliance Agreement dated December 4, 2002 (the “Prior Strategic Alliance Agreement”); 
  
 WHEREAS, KB, ING Insurance International B.V. (“III”) and ING Life Insurance Company, Korea, Ltd. (“INGLK”) entered into that
certain INGLK Joint Venture Agreement dated December 4, 2002 (the “Prior INGLK Agreement”); 
  
 WHEREAS, KB, III and KB Investment Trust Management Co., Ltd. (“KBITM”) entered into that certain KBITM Joint Venture Agreement dated
December 4, 2002 (the “Prior KBITM Agreement”); 
  
 WHEREAS, by written notice dated June 27, 2003, KB terminated the Prior INGLK Agreement pursuant to Sections 7(1)(c) and 11 of the Prior INGLK Agreement; and 
  
 WHEREAS, the parties hereto desire to maintain the alliance by (i) terminating the Prior Strategic Alliance Agreement
in its entirety and entering into this Agreement; (ii) KB entering into, and ING causing INGLK and III to enter into, a new joint venture agreement for INGLK (the “INGLK Agreement”) and (iii) KB entering into, and causing KBITM to
enter into and ING causing III to enter into that certain Amendment to KBITM Joint Venture Agreement, dated as of the date hereof (the “KBITM Amendment”) (the Prior KBITM Agreement as amended by the KBITM Amendment is hereinafter referred
to as the “KBITM Agreement”). 
  
 NOW,
THEREFORE, in consideration of the premises and the mutual covenants contained in this Agreement, the parties agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 Section 1.01. Definitions. As used in this Agreement, the following terms shall have the meanings set forth below: 
  
 “Articles of Incorporation” means the Articles of Incorporation of KB, as amended from time to time. 
  
 “Board” means the board of directors of KB.

  
 “Change in Control” means,
with respect to a Person, the acquisition of twenty percent (20%) or more of the share capital of such Person by a competitor ultimately seeking control of such Person. 
  
 “Effective Date” has the meaning set forth in Section 5.01. 
  
 “Governmental Entity” means any government
or political subdivision or department of such government or political subdivision, any governmental or regulatory body, commission, board, bureau, agency or instrumentality, any stock exchange or any court. 
  

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 “ING Break-up Event” means any of the following: 
  
 (i) a material breach by ING of the terms of this Agreement
which (if capable of remedy) is not remedied within thirty (30) days of KB informing ING in writing of such breach; 
  
 (ii) a material breach by ING or any member of the ING Group of any joint venture agreement with KB (including the INGLK Agreement and the
KBITM Agreement) which (if capable of remedy) is not remedied within thirty (30) days of KB informing such member of the ING Group in writing of such breach; 
  

(iii) the termination of the INGLK Agreement or the KBITM Agreement, pursuant to the terms and conditions of such agreements;

  
 (iv) the ING Group holding the number of
Shares less than the Minimum Shares; 
  
 (v) the
occurrence of circumstances in which the shares of ING Groep N.V. are not listed on the Amsterdam Stock Exchange or ING Groep N.V. files a de-listing application for its shares, provided that a suspension from trading of the shares for ten
consecutive trading days or less at any one time (other than due to normal business operation, including, without limitation, share consolidation or share split) shall not constitute an ING Break-up Event; 
  
 (vi) a Change in Control in ING or ING Groep N.V.;

  
 (vii) a bona fide filing of bankruptcy
pursuant to the applicable Law by or against ING or ING Groep N.V.; 
  
 (viii) ING or ING Groep N.V. becoming insolvent or the bona fide filing for administration pursuant to the applicable bankruptcy Law by ING or ING Groep N.V. or the bona fide filing for corporate reorganization
pursuant to the applicable bankruptcy Law by or against ING or ING Groep N.V.; or 
  
 (ix) ING or ING Groep N.V. ceases to carry on its current primary businesses.  
  
 “Indemnified KB Parties” has the meaning
set forth in Section 6.01. 
  
 “Indemnified ING Parties” has the meaning set forth in Section 6.02. 
  
 “ING Group” means the group of corporations from time to time comprising ING Groep N.V., any body corporate of which it
is a Subsidiary and any corporation which is a Subsidiary of it; 
  
 “KB Break-up Event” means any of the following: 
  
 (i) a material breach by KB of the terms of this Agreement which (if capable of remedy) is not remedied within thirty (30) days of ING informing KB in writing of such breach; 
  
 (ii) a material breach by KB of any joint venture agreement
with a member of the ING Group (including the INGLK Agreement and the KBITM Agreement) which (if capable of remedy) is not remedied within thirty (30) days of such member of the ING Group informing KB in writing of such breach; or 
  
 (iii) the termination of the INGLK Agreement or the KBITM
Agreement, pursuant to the terms and conditions of such agreements; 
  
 (iv) the nominees of ING to the Board have not been elected to the Board in accordance with Section 3.01(c) and the reason for the failure to elect the nominees of ING to the Board is not due to breach by ING of its
obligations with respect to the nomination and election of directors under this Agreement; 
  
 (v) the occurrence of circumstances in which the Shares are not listed on the Korea Stock Exchange or KB files a de-listing application
for the Shares, provided that a suspension from trading of the Shares for ten consecutive trading days or less at any one time (other than due to normal business operation, including, without limitation, share consolidation or share split) shall not
constitute a KB Break-up Event; 
  

 2 

 (vi) a Change in Control in KB; 
  
 (vii) a bona fide filing of bankruptcy pursuant to the
applicable Law by or against KB; 
  
 (viii) KB
becoming insolvent or the bona fide filing for composition pursuant to the applicable bankruptcy Law by KB or the bona fide filing for corporate reorganization pursuant to the applicable bankruptcy Law by or against KB; 
  
 (viii) KB ceases to carry on its current primary business;

  
 (ix) a financial holding company is created
in which KB becomes a Subsidiary of the financial holding company; or 
  
 (x) the ING Group holding the number of Shares less than the Minimum Shares. 
  
 “Korea” means the Republic of Korea. 
  
 “Law” means any law, treaty, statute, ordinance, code, rule or regulation of the
Governmental Entity or judgment, decree, order writ, award, injunction or determination of an arbitrator or court or other Governmental Entity. 
  
 “Losses” means any and all losses, penalties, claims, liabilities and expenses (including reasonable attorneys’ fees
and disbursements) incurred by, imposed upon or asserted against any Person. 
  
 “Minimum Shares” means the 12,716,691 Shares held by the ING Group as of the date hereof, as adjusted for any share consolidations or share splits or in case of the merger of KB with any other Person,
as adjusted accordingly pursuant to the merger ratio for the merger. 
  
 “Person” means any individual, corporation, company, association, partnership, joint venture, trust or unincorporated organization, or Governmental Entity. 
  
 “Relevant Securities” means, in relation to
KB, (i) any shares, debentures, warrants or options to subscribe or purchase any Shares of KB and any other securities issued by or on behalf of KB which confer any right in respect of Shares of KB (including, without limitation, securities which
may be converted into or exchanged for Shares of KB); and (ii) any securities issued by any other Person which confer any rights in respect of the Shares of KB (including, without limitation, securities which may be converted or exchanged for Shares
of KB, depository receipts, certificates representing Shares of KB, share entitlement certificates and equity linked notes). 
  
 “Representatives” means, with respect to any Person, any of such Person’s officers, directors, employees, agents,
attorneys, accountants, actuaries, consultants, equity financing partners or financial advisors or other Person associated with, or acting on behalf of, such Person. 
  
 “Shares” means the common voting shares of KB. 
  
 “Shareholding” means, in relation to the
ING Group, the ratio (expressed as a percentage) of the aggregate number of issued Shares beneficially owned directly or indirectly by any member of the ING Group (including ING), excluding (a) Relevant Securities of KB held by any member of the ING
Group on behalf of its clients or others (not being members of the ING Group or holding any interest on behalf of any member of the ING Group) for their account and (b) Relevant Securities of KB held by any member of the ING Group in an underwriting
capacity or in a market-making capacity (i.e., for trading and not investment purposes) to the aggregate number of Shares issued and outstanding. 
  
 “Subsidiaries” means, in relation to any corporate body, any corporation or other entity the securities or other
ownership interests of which (i) have ordinary voting power to elect a majority of the board of directors or other persons performing similar functions and (ii) are at that time directly or indirectly controlled by that body corporate. 

 
 Section 1.02. General Interpretive Principles. Whenever used in
this Agreement, except as otherwise expressly provided or unless the context otherwise requires, any noun or pronoun shall be deemed to include the 

  

 3 

 
plural as well as the singular and to cover all genders. The name assigned in this Agreement and the section captions used herein are for convenience of
reference only and shall not be construed to affect the meaning, construction or effect hereof. Unless otherwise specified, the term “including” means “including without limitation” (and “include,” “includes”
and “included” shall be similarly interpreted). References in this Agreement to Articles, Sections, Annexes, Exhibits or Schedules mean the Articles, Sections, Annexes, Exhibits and Schedules of or to this Agreement. All references to Won
refer to Korean Won. 
  
 ARTICLE II 
  
 TERMINATION OF PRIOR STRATEGIC ALLIANCE 
 AGREEMENT; PREVAILING AGREEMENT 
  
 Section 2.01. Termination of Prior Strategic Alliance Agreement. As of the Effective Date, the Prior Strategic Alliance Agreement (and any other
agreements which the Prior Strategic Alliance Agreement replaced) shall be terminated in its entirety and shall become null and void and shall be replaced in its entirety by this Agreement. The parties agree to waive any and all rights accrued under
the Prior Strategic Alliance Agreement and neither party shall have any right to claim for any losses or indemnification arising thereunder. 
  
 Section 2.02. Prevailing Agreement. The parties acknowledge that this Agreement shall constitute the controlling agreement with respect to the
alliance between the parties and in the event there is any discrepancy or inconsistency between the terms contained in this Agreement and any of the joint venture agreements, the terms contained in this Agreement shall prevail. 
  
 ARTICLE III 
  
 GOVERNANCE 
  
 Section 3.01. Board Representation. 
  
 (a) ING will be entitled to nominate one (1) non-standing director for
appointment to the Board, subject to the approval of the shareholders of KB at a meeting of the shareholders of KB in accordance with the Articles of Incorporation and the Korean Commercial Code, as long as the ING Group holds at least the number of
Shares equal to the Minimum Shares. ING undertakes to procure that at the request of KB, its nominee for the non-standing director will resign from the Board or any committees to which the nominee is a member immediately if the ING Group holds the
number of Shares less than the Minimum Shares. 
  
 (b) In addition
to the one (1) non-standing director as provided for in Section 3.01 (a) above, ING shall be entitled to nominate one (1) standing director, who shall be an Executive Vice President of KB, for appointment to the Board, subject to the approval of the
shareholders of KB at a meeting of the shareholders of KB in accordance with the Articles of Incorporation and the Korean Commercial Code, if the Shareholding of the ING Group is equal to or greater than six percent (6%) of the issued and
outstanding Shares of KB. ING undertakes to procure that at the request of KB, its nominee for the standing (EVP) director will resign from the Board or any committees to which the nominee is a member immediately if the Shareholding of the ING Group
is less than six percent (6%) of the issued and outstanding Shares of KB. 
  
 (c) To the extent that it is permissible under Korean Law and subject to Section 3.03, KB shall procure that the independent directors recommendation committee or any other committee or corporate organ which has
authority to nominate and/or recommend the directors to the Board will (subject to such organ being reasonably satisfied as to the suitability and capability of the nominees) nominate and recommend that ING’s nominees to the Board under Section
3.01(a) or (b) above be elected to the Board by the shareholders at the next meeting of the shareholders of KB to occur following their nomination and use reasonable efforts to secure their election. If any nominee of ING to the Board is not elected
at the first meeting of shareholders at which his or her appointment to the Board is proposed, KB shall procure that the Board shall, within 14 days following such first 

  

 4 

 
meeting of shareholders, convene a Board meeting for the purpose of convening another meeting of shareholders as soon as practicable and in any event within
60 days following such Board meeting for the purpose of election to the Board of another nominee of ING. If such new nominee of ING to the Board is not elected at such second meeting of shareholders, KB shall procure that the Board shall, within 14
days following such second meeting of shareholders, convene a Board meeting for the purpose of convening another meeting of shareholders as soon as practicable and in any event within 60 days following such Board meeting for the purpose of the
election to the Board of another nominee of ING. No nominee who has been rejected for election to the Board by the shareholders of KB at a meeting of shareholders may be re-nominated for election to the Board at a subsequent meeting of shareholders.
Pending appointment of ING’s nominee to the Board, the ING nominee will be entitled to attend all meetings of the Board as an observer. In addition, the nominee for the standing director shall take the office of an Executive Vice President of
KB, provided, that if such nominee for the standing director is not elected as a director, the nominee will resign immediately as an Executive Vice President of KB and the standing director newly nominated by ING shall take the office of an
Executive Vice President of KB pending appointment to the Board.  
  
 Section 3.02. Vacancies. In the event of the death, disability, resignation or removal of an ING nominee from the Board, ING may designate a replacement for such director. To the extent it is permissible under
Korean Law and subject to Section 3.03, KB shall procure that the replacement nominee will be elected to the Board in accordance with the procedures set out in Section 3.01(c) above. Pending appointment of ING’s nominee to the Board, ING’s
nominee will be entitled to attend all meetings of the Board in the capacity as an observer. In addition, the nominee for standing director shall take the office of an Executive Vice President of KB. 
  
 Section 3.03. Prior Notification. In connection with the election of
any ING director nominated pursuant to Sections 3.01 and 3.02 above, ING shall provide a written list of the candidate(s), including the candidate(s)’ resume and qualifications, to the Board at least two (2) months prior to the next meeting of
shareholders where such candidate(s) will be up for election. If the Board has specific qualifications for the candidate(s), the Board shall notify ING of such qualifications and ING shall use its commercially reasonable efforts to accommodate the
Board request. 
  
 Section 3.04. Remuneration. KB shall
provide the standing and non-standing director nominees of ING with remuneration and benefit packages that are similar to the remuneration and benefits package which KB provides to its other Executive Vice Presidents and non-standing directors with
corresponding levels of seniority and experience. The Executive Vice President nominee shall be entitled to an appropriate expatriate housing allowance. Except as provided above, ING shall bear the cost of any additional remuneration and benefits of
the nominees. 
  
 ARTICLE IV 
  
 REPRESENTATIONS AND WARRANTIES 
  
 Section 4.01. Representations and Warranties of KB. KB hereby
represents and warrants to ING as follows: 
  
 (a) Corporate
Organization and Qualification. KB is a corporation duly organized and validly existing under the laws of Korea and has all power and authority required to use its properties and conduct its business as it is now being conducted. 
  
 (b) Authorization of Agreement; Enforceability. KB has all requisite
corporate power and authority to execute, deliver and perform its obligations under this Agreement. The execution, delivery and performance of this Agreement have been duly authorized by all necessary corporate action on the part of KB. This
Agreement has been duly executed and delivered by KB and constitutes a valid and binding obligation of KB, enforceable against KB in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium or other similar laws relating to or affecting creditors’ rights generally and by general principles of equity. 
  

 5 

 (c) No Conflict. The execution, delivery and performance of this Agreement will not: (i) violate
any provision of the Articles of Incorporation or other constitutional documents of KB or (ii) result in the violation of any Law applicable to KB. 
  
 Section 4.02. Representations and Warranties of ING. ING hereby represents and warrants to KB as follows: 
  
 (a) Corporate Organization and Qualification. ING is a corporation
duly organized and validly existing under the laws of the Netherlands and has all power and authority required to use its properties and conduct its business as it is now being conducted. 
  
 (b) Authorization of Agreement; Enforceability. ING has all requisite corporate power and authority to execute,
deliver and perform its obligations under this Agreement. The execution, delivery and performance of this Agreement have been duly authorized by all necessary corporate action on the part of ING. This Agreement has been duly executed and delivered
by ING and constitutes a valid and binding obligation of ING, enforceable against ING in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other
similar laws relating to or affecting creditors’ rights generally and by general principles of equity. 
  
 (c) No Conflict. The execution, delivery and performance of this Agreement will not: (i) violate any provision of the articles of incorporation or
other constitutional documents of ING or (ii) result in the violation of any Law applicable to ING. 
  
 ARTICLE V 
  
 EFFECTIVE DATE; TERM; TERMINATION 
  
 Section
5.01. Effective Date; Term. This Agreement shall become effective upon the execution and delivery of the INGLK Agreement and the KBITM Amendment (the “Effective Date”) and shall continue in full force and effect until this Agreement
is terminated in accordance with this Article V or other applicable provisions hereof. 
  
 Section 5.02. Termination of this Agreement. Subject to Section 5.03, this Agreement may be terminated as follows: 
  
 (a) KB shall have the right to terminate this Agreement by giving written notice to ING if any ING Break-up Event has occurred, provided that if such
right is not exercised within 30 days, the right to terminate the Agreement with respect to such event shall be deemed to have been waived; 
  
 (b) ING shall have the right to terminate this Agreement by giving written notice to KB if any KB Break-up Event has occurred, provided that if such right
is not exercised within 30 days, the right to terminate the Agreement with respect to such event shall be deemed to have been waived; or  
  
 (c) the parties hereto so mutually agree in writing. 
  
 Section 5.03. Consequences of Termination 
  
 (a) Termination of this Agreement shall be without prejudice to the accrued rights and liabilities of the parties on the date of termination, unless
waived in writing. 
  
 (b) Unless expressly stated otherwise, the
right of either party to terminate this Agreement is not an exclusive remedy, and upon breach of this Agreement, the parties shall be entitled alternatively or cumulatively to any available remedy against the other parties at law or in equity.

  

 6 

 (c) Upon the termination of this Agreement for any reason, the provisions of this Agreement shall have no
further force or effect and no party shall have any continuing rights, obligations or liabilities under this Agreement, except that Articles IV, V, VI, and VII shall continue in full force and effect. 
  
 ARTICLE VI 
  
 INDEMNIFICATION 
  
 Section 6.01. Indemnification by ING. ING agrees to indemnify and hold
harmless KB and each Representative of KB (collectively, the “Indemnified KB Parties”) from and against any and all Losses incurred by any of the Indemnified KB Parties as a result of, or arising out of, the breach of any
representation, warranty, covenant or agreement made by ING in this Agreement. 
  
 Section 6.02. Indemnification by KB. KB agrees to indemnify and hold harmless ING and each Representative of ING (collectively, the “Indemnified ING Parties”) from and against any and all
Losses incurred by any of the Indemnified ING Parties as a result of, or arising out of, the breach of any representation, warranty, covenant, or agreement made by KB in this Agreement. 
  
 ARTICLE VII 
  
 MISCELLANEOUS 
  
 Section 7.01. Fees and Expenses. Each party shall pay all costs and expenses including, but not limited to, attorneys, accountants, consultants,
agents and brokers’ fees, incurred or to be incurred by it in connection with this Agreement and the transaction contemplated hereby, regardless of whether the transaction is consummated. 
  
 Section 7.02. Notices. All notices and other communications hereunder
shall be in writing and shall be deemed to have been duly given upon receipt, if delivered personally, sent by fax or sent by first class mail, postage prepaid, as follows: 
  

	 	(a)	If to KB, to: 

  
 36-3, Yoido-dong, Youngdeungpo-gu 
 Seoul, Korea 150-758 
 Facsimile number: 822-769-7230 
 For the attention of Head of Strategic Planning Team 
  

	 	(b)	If to ING, to: 

  
 ING Asia / Pacific Ltd. 
 39/F, One International Finance Centre 
 1 Harbour View Street 
 Central, Hong Kong 
  
 Facsimile number: 852-2295-1947 
 For the attention of Hendrik Kooiker 
  
 or, in each case, to such other address or addresses or fax numbers as shall hereafter be furnished as provided in this Section 7.02 by any party to the other parties. All notices shall be effective when received. 
  
 Section 7.03. Entire Agreement; Amendment; Severability. This
Agreement and the documents described herein, or attached or delivered pursuant to such agreements, set forth the entire agreement among the parties, with respect to the transaction contemplated by this Agreement and supersede all prior agreements
and undertakings. Any provision of this Agreement may be amended, modified or supplemented in whole or in part at 

  

 7 

 
any time by an agreement in writing among the parties to this Agreement. No failure on the part of any party to exercise, and no delay in exercising, any
right shall operate as a waiver of such right, nor shall any single or partial exercise by any party of any right preclude any other or future exercise of such right or the exercise of any other right. If any provision of this Agreement is held to
be invalid or unenforceable, all other provisions shall nevertheless continue in full force and effect. 
  
 Section 7.04. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed to constitute an original,
but all of which together shall constitute one and the same document. 
  
 Section 7.05. Governing Law. This Agreement shall be governed by, and interpreted in accordance with, the laws of Korea applicable to contracts made and to be performed in that jurisdiction, without reference to its conflict of laws
rules. 
  
 Section 7.06. Arbitration. 
  
 (a) In the event of any dispute, claim or controversy among the parties
arising out of or relating to this Agreement, such dispute, claim or controversy shall be resolved by and through an arbitration proceeding in Singapore in accordance with the Rules of the International Chamber of Commerce. KB shall appoint one
arbitrator and ING shall appoint the other arbitrator within 30 days after receipt of a demand for arbitration from the other party. The two arbitrators thus appointed shall, within 30 days after both shall have been appointed, appoint a third
arbitrator who shall preside over the arbitration proceedings. The proceedings shall be conducted in English, and all arbitrators shall have a thorough command of the English language. The decision of the arbitrators shall be final and binding on
the parties and judgment thereon may be entered in any court of competent jurisdiction. Notwithstanding anything in this Section 7.06, any party shall be entitled to seek preliminary injunctive relief from any court of competent jurisdiction pending
the final decision or award of the arbitrators. 
  
 (b) The
parties agree that arbitration as set forth above shall be the sole means of resolving any disputes, claims and controversies among them arising out of this Agreement. 
  
 Section 7.07 Successors and Assigns. Except as otherwise expressly provided herein, the provisions of this Agreement
shall inure to the benefit of, and be binding upon, the parties’ successors and permitted assigns. Neither this Agreement nor any rights or obligations hereunder shall be assignable or transferable by any party to this Agreement without the
prior written consent of the other parties to this Agreement. 
  
 Section 7.08. No Third-Party Beneficiaries. This Agreement is for the sole benefit of the parties to this Agreement and their respective successors and permitted assigns, and nothing herein, express or implied, is intended or shall
confer upon any other Person any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement. 
  
 SIGNATURES ON NEXT PAGE 
  

 8 

 IN WITNESS WHEREOF, this Agreement has been executed by the parties all as of the date first above
written. 
  

							
	KOOKMIN BANK	  	ING BANK N.V.
				
	 By:
	 	 /s/    HENDRIK
KOOIKER        

	  	 By:
	 	 /s/    JONG-KYOO
YOON        

	Name:	 	Hendrik Kooiker	  	Name:	 	Jong-Kyoo Yoon
	Title:	 	Authorized Representative	  	Title:	 	 Executive Vice President of
 Strategic Planning Division

  

 92004 Restricted Stock and Option Plan

 Exhibit 4.8 
  

AUTOBYTEL INC. 
 2004 RESTRICTED
STOCK AND OPTION PLAN 
  
 SECTION 1 
  
 DEFINITIONS 
  
 As used herein, the following terms have the meanings hereinafter set forth unless the context clearly indicates to the
contrary: 
  
 “Administrator” means the Board or the
Committee; whichever shall be administering the Plan from time to time in the discretion of the Board, as described in Section 3 of this Plan, and shall include any Special Committee that the Board or the Committee may appoint (provided that the
Special Committee may only exercise discretion with respect to Participants to whom the Special Committee is authorized to make Awards). 
  
 “Affiliate” means any entity, including any Parent Corporation or Subsidiary Corporation within the meaning of Section 424 of the Code, which
together with the Company is under common control within the meaning of Section 414 of the Code. 
  
 “Award” means any award made pursuant to Section 6 of this Plan, whether in the form of Restricted Shares, Restricted Units, Options, Stock
Appreciation Rights, Deferred Shares or a Performance Award. 
  
 “Award Agreement” means any written document setting forth the terms and conditions of an Award, as prescribed by the Committee. 
  
 “Award Term” means the maximum period of time during which an Award may be earned, exercised or purchased as set forth in Section 6.8 below.

  
 “Board” means the Board of Directors of the Company.

  
 “Code” means the Internal Revenue Code of 1986, as
amended. 
  
 “Committee” means the committee appointed
by the Board in accordance with Section 3 of this Plan. 
  
 “Company” means Autobytel Inc., a Delaware corporation. 
  
 “Deferred Shares” mean shares of Common Stock credited under Section 6.3 of this Plan. 
  
 “Director” means a member of the Board of Directors of the Company, and any director or directors of an Employer Company whom the Board
designates as being eligible for Awards. 
  

 “Employee” means an individual who is employed (within the meaning of Section 3401 of the Code
and the Treasury Regulations thereunder) by the Company or any present or future Employer Company. 
  
 “Employer Company” means a company, whether (i) the Company or a Parent Corporation or Subsidiary Corporation of the Company, which employs the
Employee; (ii) a 50% or more affiliate of the Company or a Parent Corporation or Subsidiary Corporation of the Company, which employs the Employee or receives services from a Service Provider, or (iii) the Company or a Parent Corporation or
Subsidiary Corporation of the Company, to which the Service Provider is providing services or with which Service Provider engages in business. 
  
 “Fair Market Value of Shares” shall mean (i) if the Shares are not publicly traded on the day in question, the closing price of the Shares on
the prior trading day or the next trading day (whichever is closest in time to the day in question), provided that such date is no more than five (5) days from the date the Award is granted, (ii) if the Shares are not publicly traded on the day in
question and (i) above does not apply, the fair market value of the Shares on the day in question as determined and set forth in writing by the Administrator (which, in making such determination, shall make a good faith effort to establish the true
fair market value of the Shares as of such date using such methods as it deems appropriate, including independent appraisals, and taking into consideration any requirements set forth in the Code or the Treasury Regulations thereunder), or (iii) if
the Shares are publicly traded on the day in question, the closing price of the Shares on the day in question. 
  
 “Incentive Stock Option” means an Option for Shares that is intended to be, designated in writing as, and qualifies as an Incentive Stock Option
within the meaning of Section 422 of the Code. 
  
 “Nonstatutory Stock Option” means an Option which is not an Incentive Stock Option and which is designated as a Nonstatutory Stock Option by the Administrator. 
  
 “Option” means an option to purchase a Share pursuant to the provisions of this Plan. 
  
 “Option Price” means the price per share of the Shares subject to
each Option or Stock Appreciation Right as provided, respectively, in Sections 6.4(c) and 6.5 (b) below. 
  
 “Outside Director” means a Director who is not an Employee. 
  
 “Parent Corporation” shall have the meaning assigned to that term under Section 424 of the Code. 
  
 “Participant” means any holder of one or more Awards, or the Shares
issuable or issued upon the vesting, exercise or distribution of Awards, pursuant to the Plan. 
  
 “Performance Awards” mean Performance Units and Performance Compensation Awards granted pursuant to Section 6.6 of the Plan. 
  
 “Performance Compensation Awards” mean Awards granted pursuant to Section 6.6(b) of the Plan. 
  

 -2- 

 “Performance Units” means Awards granted pursuant to Section 6.6(a) of the Plan which may be
paid in cash, in Shares, or such combination of cash and Shares as the Committee in its sole discretion shall determine. 
  
 “Plan” means the Autobytel Inc. 2004 Restricted Stock and Option Plan, the terms of which are set forth herein. 
  
 “Restricted Shares” means Shares subject to restrictions imposed
pursuant to Section 6.2 of this Plan. 
  
 “Restricted
Units” means units awarded pursuant to Section 6.2(f) of this Plan. 
  
 “Service Provider” means any individual who follows an independent trade, business or profession in which he/she provides his/her services to the Company, any present or future Parent Corporation or
Subsidiary Corporation of the Company, or any 50% or more affiliate of the Company or a Parent Corporation or Subsidiary Corporation, including, without limitation, consultants, independent contractors and suppliers to the Company. 
  
 “Share” or “Shares” means Common Stock of the Company,
par value $.001 per share, or, in the event that the outstanding Shares are hereafter changed into or exchanged for different shares or securities of the Company or some other corporation or other entity, such other shares or securities. 

 
 “Special Committee” means any committee to which the Board or
Committee may delegate the authority to grant Awards to eligible persons not described in Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). 
  
 “Stock Appreciation Right” means the right to receive the appreciation in value, or the portion of the
appreciation in value, or a specified number of Shares pursuant to Section 6.5. 
  
 “Subsidiary Corporation” shall have the meaning assigned to that term under Section 424 of the Code. 
  
 “Total and Permanent Disability,” unless otherwise specified in the applicable Award Agreement, means the inability of an Employee, Service
Provider or Outside Director to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous
period of not less than twelve months. 
  
 SECTION 2 
  
 THE PLAN 
  
 2.1 Name. This Plan shall be known as “Autobytel Inc. 2004 Restricted Stock and Option Plan.” 

 

 -3- 

 2.2 Purpose. The purpose of this Plan is to advance the interests of the Company and its
stockholders by affording Employees and Service Providers of the Employer Company and Outside Directors an opportunity to acquire or increase their proprietary interest in the Company by the grant to such individuals of Awards under the terms set
forth herein. 
  
 2.3 Intention; Options. 
  
 (a) It is intended that Options (if any) issued as Incentive
Stock Options under this Plan will qualify as incentive stock options under Section 422 of the Code and the terms of this Plan shall be interpreted in accordance with such intention 
  
 (b) It is intended that all Options issued to Service Providers and Outside Directors shall be Nonstatutory
Stock Options and that any Options issued to Employees may be Nonstatutory Stock Options. 
  
 SECTION 3 
  
 ADMINISTRATION

  
 3.1 Administration. This Plan shall be administered, in
the discretion of the Board from time to time, by the Board or by the Committee acting as the Administrator. The Committee shall be appointed by the Board, in a manner consistent with the Company’s By-laws, and shall consist of two (2) or more
members, each of whom is an outside director (within the meaning of Code Section 162(m) and the Treasury Regulations thereunder) as well as a non-employee director (within the meaning of Rule 16(b)-3 under the Exchange Act, as amended). The Board
may from time to time remove members from, or add members to, the Committee. The Board shall fill vacancies on the Committee however caused. The Board may appoint one (1) of the members of the Committee as Chairman. The Administrator shall hold
meetings at such times and places as it may determine. Acts of a majority of the Administrator at which a quorum is present, or acts reduced to or approved in writing by the unanimous consent of the members of the Administrator, shall be the valid
acts of the Administrator. Additionally, and notwithstanding anything to the contrary contained in this Plan, the Board or Committee may delegate to a Special Committee the authority to grant Awards and to specify the terms and conditions thereof to
certain eligible persons who are not subject to the requirements of Section 16 of the Exchange Act, in accordance with guidelines approved by the Board or Committee. 
  
 3.2 Duties. The Administrator (or the Special Committee) shall from time to time at its discretion determine the
Employees, Service Providers and Outside Directors who are to be granted Awards, the terms of any Awards (which may be based on performance), and the number of Shares to be subject to Awards to be granted to each Participant. The interpretation and
construction by the Administrator of any provisions of this Plan or of any Award granted thereunder shall be final. Moreover, the Administrator shall at any time be entitled to modify the vesting terms for Awards, the timing rules for exercise of
Options and SARs, and any other provisions of outstanding Awards (to the extent the modification would be allowable under this Plan for a new Award), provided that the Participant shall so consent to any modification adverse 

  

 -4- 

 
to the Participant’s interests. No member of the Administrator shall be liable for any action or determination made in good faith with respect to this
Plan or any Award granted hereunder. 
  
 SECTION 4 
  
 PARTICIPATION 
  
 4.1 Eligibility. The Administrator may from time to time make Awards to such persons (collectively,
“Participants”; individually a “Participant”) as the Administrator (or the Special Committee) may select from among the following classes of persons, subject to the terms and conditions of Sections 4.2 and 4.3 below: 

 
 (a) Employees of the Company; 
  
 (b) Employees of any Employer Company; 
  
 (c) Service Providers of the Company or any Employer Company
(or any other related entity); 
  
 (d) Outside
Directors; and 
  
 (e) Directors of the
Company’s Employer Companies. 
  
 4.2 Limitation on
Awards. In no event may any Participant receive Awards under this Plan with respect to (i) more than 500,000 Shares during any calendar year, or (ii) more than 1,000,000 Shares during the term of this Plan. 
  
 4.3 Ten-Percent Stockholders. A Participant who beneficially owns more
than ten percent (10%) of the total combined voting power of all classes of outstanding stock of the Company, as determined under Sections 422 and 424 of the Code, shall not be eligible to receive an Incentive Stock Option unless: 
  
 (a) the Option Price of the Shares subject to such Option is
at least one hundred ten percent (110%) of the Fair Market Value of such Shares on the date of grant; and 
  
 (b) such Option by its terms is not exercisable after the expiration of five (5) years from the date of grant. 
  
 For purposes of this Section 4.3, “outstanding stock” shall include all stock
actually issued and outstanding immediately after the grant of the Option to the Participant. “Outstanding stock” shall not include Shares authorized for issue under outstanding Options held by the Participant or by any other person.

  

 -5- 

 SECTION 5 
  
 SHARES SUBJECT TO PLAN 
  
 5.1 Shares Available for Awards. Subject to adjustment pursuant to the provisions of Section 5.2 hereof, the total number of Shares, which may be
issued pursuant to all Awards, shall not exceed (i) 2,700,000 Shares for all Awards and (ii) 200,000 Shares for Awards in a form other than Options and Stock Appreciation Rights. Shares that may be issued pursuant to Awards may be either authorized
and unissued Shares or issued Shares which have been reacquired by the Company. If, and to the extent, any Award shall be forfeited, expire, or terminate for any reason without having resulted in the issuance of unrestricted Shares to a Participant
or a Participant’s beneficiary in the case of Restricted Shares and Deferred Shares, or, without having been exercised in full in the case of Options or Stock Appreciation Rights, new Awards may be granted covering Shares originally set aside
for the forfeited, expired, or terminated Award, or the unexercised portion of such expired or terminated Option or Stock Appreciation Right. 
  
 Notwithstanding the preceding sentence, but subject to adjustments pursuant to Section 5.2 below, the number of Shares that are available for ISOs shall
be determined, to the extent required under applicable tax laws, by reducing the number of Shares designated in the preceding paragraph by the number of Shares granted pursuant to Awards (whether or not Shares are issued pursuant to such Awards);
provided that any Shares that are either purchased under the Plan and forfeited back to the Plan, or surrendered in payment of the exercise price for an Award shall be available for issuance pursuant to ISOs. 
  
 5.2 Adjustments. 
  
 (a) Stock Splits and Dividends. Subject to any
required action by the Board, the number of Shares covered by this Plan as provided in Section 5.1 hereof, the number of Shares covered by each outstanding Award, and the price if any at which a Participant may purchase Restricted Shares, Deferred
Shares or exercise Options or Stock Appreciation Rights shall be proportionately adjusted for any increase or decrease in the number of issued Shares resulting from a recapitalization, reclassification, subdivision or consolidation of Shares or the
payment of a stock dividend (but only if paid in Shares), a stock split or any other increase or decrease in the number of issued Shares effected without receipt of consideration by the Company. 
  
 (b) Mergers. Subject to any required action by the
Board and/or stockholders, if the Company shall merge with another corporation and the Company is the surviving corporation in such merger and under the terms of such merger the Shares outstanding immediately prior to the merger remain outstanding
and unchanged, each outstanding Award shall continue to apply to the Shares subject thereto and shall also pertain and apply to any additional securities and other property, if any, to which a holder of the number of Shares subject to the Award
would have been entitled as a result of the merger. 
  

 -6- 

 (c) Adjustment Determination. To the extent that the foregoing adjustments relate
to securities of the Company, such adjustments shall be made by the Administrator, whose determination shall be conclusive and binding on all persons. In computing any adjustment under this Section 5.2, any fractional Share which might otherwise
become subject to an Award shall be eliminated. 
  
 (d) Special Dividends. Subject to any required action by the Board, the Administrator shall be entitled to determine whether any adjustment shall be made with respect to the number of Shares covered by this Plan as provided in
Section 5.1 hereof, the number of Shares covered by each outstanding Award and the Option Price for Options if the Company pays a special or extraordinary dividend. 
  
 SECTION 6 
  
 AWARDS 
  
 6.1 Award Grant and Agreement. 
  
 (a) The Administrator may from time to time, subject to the terms of this Plan, grant to any Participant one or more Awards; provided,
however, that the Special Committee may from time to time grant Awards to eligible persons not described in Section 16 of the Exchange Act or serving on the Special Committee. Each Award grant shall be evidenced by a written Award Agreement, dated
as of the date of grant and executed by the Company and the Participant, which Award Agreement shall set forth the number of Awards granted (or formula, that may be based on future performance or conditions, for determining the number of Shares to
be issued pursuant to the Award), whether the Award is for Restricted Shares, Deferred Shares, Options, or Stock Appreciation Rights, the price if any at which a Participant may purchase Restricted Shares or Deferred Shares, the Option Price
associated with Options and Stock Appreciation Rights, the Award Term, in the case of a Performance Award, in addition to the matters addressed in Section 6.6 below, the specific objectives, goals and performance criteria that further define the
Award, and such other terms and conditions as may be determined appropriate by the Administrator (or the Special Committee), provided that such terms and conditions are not inconsistent with this Plan. The Award Agreement shall incorporate this Plan
by reference and provide that any inconsistencies or disputes shall be resolved in favor of this Plan language. 
  
 (b) Awards shall be made by the Administrator or Special Committee selectively among the Participants and the terms and provisions of such
grants and the agreements evidencing the same (including, without limitation, the form, the amount, the timing, the terms for any purchase, the exercisability of Options and Stock Appreciation Rights, and vesting schedule of such grants) need not be
uniform, whether or not the Participants are similarly situated. 
  

 -7- 

 6.2 Restricted Share and Restricted Unit Awards. 
  
 (a) Awards. The Administrator may award Restricted
Shares (or Shares subject to Restricted Units pursuant to Section 6.2(f) below) to Participants, in such amounts, and subject to such terms and conditions as the Administrator shall determine in its discretion, subject to the provisions of this
Plan. The Administrator shall determine the purchase price, if any, of Restricted Shares, and may issues Shares that are immediately vested and unrestricted. A Participant shall have no rights with respect to a Restricted Share Award unless the
Participant accepts the Award within the time period the Administrator specifies by executing the Award Agreement prescribed by the Administrator and, if applicable, pays the purchase price for the Restricted Shares by any method that is acceptable
to the Company. 
  
 (b) Issuance of Award.
The Company shall issue in the Participant’s name a certificate or certificates for the appropriate number of Shares upon the Participant’s execution of the applicable Award Agreement. 
  
 (c) Plan and Regulatory Exceptions. Any certificate
issued evidencing Restricted Shares shall remain in the Company’s possession until those Shares are free of restrictions, except as otherwise determined by the Administrator. 
  
 (d) Deferral Elections. The Participant may elect in accordance with Section 6.3(b) hereto, with the
Administrator’s consent, to exchange Restricted Shares for an equivalent number of Deferred Shares under Section 6.3 hereto, but subject to such vesting restrictions as the Administrator may prescribe. 
  
 (e) Forfeiture. If so provided in an Award Agreement,
during a designated period of up to 120 days following termination of the Participant’s service with the Company for any reason or for reasons designated in the Award Agreement, the Company shall have the right to repurchase Shares to which
restrictions on transferability apply, in exchange for which the Company shall repay to the Participant the lesser of the amount paid by the Participant for such Shares or the Fair Market Value of such Shares at the time of repurchase by the Company
(or such other price as the Administrator shall specify in the Award Agreement). 
  
 (f) Restricted Units. In lieu of issuing Restricted Shares to a Participant, the Administrator may in its discretion grant a
Participant the right to receive Shares after certain vesting requirements are met, and shall evidence such grant in an Award Agreement that sets forth – 
  

	 	(i)	a number of Restricted Units that correspond to the number of Shares that the Participant shall be entitled to receive upon vesting, 

  

	 	(ii)	the terms upon which the Shares subject to the Restricted Units may become vested, and 

  

 -8- 

	 	(iii)	whether or not the Award is subject to the terms and conditions set forth in Sections 6.2(d) and 6.2(e), which shall be deemed to apply unless an Award Agreement expressly provides
to the contrary. 

  
 As soon as practicable after
vesting of a Participant’s Restricted Units, the Company shall issue to the Participant, free from the vesting restrictions, one Share for each vested Restricted Unit, unless the Award provides otherwise. No fractional shares shall be
distributed, and cash shall be paid in lieu thereof. Whenever Shares are issued to a Participant pursuant to the Award of Restricted Units, the Participant shall also be entitled to receive, with respect to each Share issued, an amount equal to any
cash dividends and a number of Shares equal to any stock dividends, which were declared and paid to the holders of Shares between the date of grant of the Restricted Unit and the date such Share is issued. If a Participant who has received an Award
in the form of Restricted Units provides the Administrator with written notice of his or her intention to make an election under Section 83(b) of the Code with respect to the Shares subject to the Award, the Administrator may, in its discretion and
subject to any terms and conditions that the Administrator may impose, exchange the Participant’s Restricted Units into Restricted Shares, on a one-for-one basis. 
  
 6.3 Deferred Shares. 
  
 (a) Deferral Elections. The Administrator may award Deferred Shares to one or more Participants, and may also permit any
Participant to irrevocably elect to receive the credits described in Section 6.3(b) below in lieu of fees, salary, or other income (including Restricted Shares and Restricted Units) from the Company that the Participant earns after the election;
provided that Employees will only be permitted to receive Deferred Share Awards pursuant to this Section if the Administrator determines they are members of a select group of management or highly compensated employees (within the meaning of the
Employee Retirement Income Security Act of 1974). Any election pursuant to this Section shall be made before the Participant becomes legally entitled to the fees, salary, or other income being deferred; provided that (a) a deferral election with
respect to Restricted Shares or previously Deferred Shares must be made more than 12 months before a Participant’s Restricted Shares vest or Deferred Shares are scheduled to be distributed to a Participant pursuant to this Section; and provided
further that (b) the Administrator will honor an election made within 12 months of a scheduled vesting date (or distribution date for Deferred Shares) if the Participant consents in the election to irrevocably forfeit 5% of the Restricted or
Deferred Shares to which the Participant would otherwise be entitled. 
  
 (b) Deferred Share Credits and Earnings. The Administrator shall establish an internal Plan account for each Participant who either receives an Award of Deferred Shares or makes an election under this Section
6.3. At the end of each calendar year thereafter (or such more frequent periods as the Administrator may direct or approve), the Administrator shall credit the Participant’s account with a number of Deferred Shares having a Fair Market Value on
that date equal to the compensation deferred during the year, and any cash dividends paid during the year on Deferred Shares previously credited 

  

 -9- 

 
to the Participant’s account. The Administrator shall hold each Participant’s Deferred Shares until distribution is required pursuant to Section
6.3(d) hereto. 
  
 (c) Rights to Deferred
Shares. Except as provided in Section 6.2(d) hereto, a Participant shall at all times be 100% vested in his or her right to any Deferred Shares and any associated cash earnings. A Participant’s right to Deferred Shares shall
at all times constitute an unsecured promise of the Company to pay benefits as they come due. 
  
 (d) Distributions of Deferred Shares and Earnings. The Administrator shall distribute a Participant’s Deferred
Shares in five substantially equal annual installments in real Shares commencing as of the first day of the calendar year beginning after the Participant’s continuous service terminates, provided that the Administrator will honor a
Participant’s election of a different time and manner of distribution if the election is made on a form approved by and acceptable to the Administrator. Fractional shares shall not be distributed, and instead shall be paid out in cash.

  
 (e) Hardship Withdrawals. A
Participant may apply to the Administrator for an immediate distribution of all or a portion of his or her Deferred Shares on account of hardship. The hardship must result from a sudden and unexpected illness or accident of the Participant or
dependent, casualty loss of property, or other similar conditions beyond the control of the Participant. School expenses or residence purchases, for example, will not be considered hardships. Distributions will not be made to the extent a hardship
could be relieved through insurance or by liquidation of the Participant’s nonessential assets. The amount of any distribution hereunder shall be limited to the amount necessary to relieve the Participant’s financial hardship. The
determination of whether a Participant has a qualifying hardship and the amount to be distributed, if any, shall be made by the Administrator in its discretion. The Administrator may require evidence of the purpose and amount of the need, and may
establish such application or other procedures as it deems appropriate. 
  
 6.4 Options. The Administrator may from time to time grant Options subject to the terms of this Plan, including the specified terms of this Section. 
  
 (a) Conditions With Respect to Non-Statutory Stock Options. Certain Nonstatutory Stock Options
(“Performance Grants”) shall, if the Administrator so determines in its discretion, be subject to the following conditions, which conditions shall be stated within the applicable Award Agreement: 
  
 (i) At the time of grant, the Administrator may, in its
discretion, place additional restrictions on Performance Grants requiring that the Option will vest only if and when, or on an accelerated basis if and when, the Common Stock price exceeds a specific amount. Generally, Performance Grants will be
subject to the same requirements described herein, unless the Administrator decides otherwise. 
  
 (ii) At the time of grant, the Administrator may, in its discretion, place additional restrictions on the Performance Grants requiring
that on the exercise of such a grant an Employee will purchase Shares that will be forfeited if the 

  

 -10- 

 
Participant terminates employment within a certain number of years. Additional transferability restrictions may be imposed in connection with Performance
Grants. 
  
 (b) Conditions With Respect to
Incentive Stock Options. Each Incentive Stock Option shall be subject to the following conditions, in addition to those set forth in Section 4.3, all of which conditions shall be stated within the applicable Award Agreement: 
  
 (i) To the extent that the aggregate Fair Market Value of
Shares (determined as of the time an Option is granted) exercisable for the first time by a Participant during any calendar year under such Incentive Stock Option and any other Incentive Stock Option issued by the Company or any Subsidiary
Corporation or Parent Corporation exceeds $100,000, such excess Incentive Stock Options shall be deemed Nonstatutory Stock Options. 
  
 (ii) In no event may any Incentive Stock Option become exercisable later than the date preceding the tenth anniversary date of the grant
thereof. 
  
 Any Incentive Stock Option which does not comply
with the forgoing provisions shall not be considered an Incentive Stock Option, and instead shall be considered a Nonstatutory Option issued under this Plan. 
  

(c) Option Price. The Option Price shall be determined by the Administrator (or the Special Committee), subject to any
limitations imposed by this Plan and, in any event, shall not be less than one hundred percent (100%) of the Fair Market Value of Shares on the date of grant in the case of both Incentive Stock Options and Nonstatutory Stock Options; provided that
in the case of Incentive Stock Options granted to a Participant described in Section 4.3 hereof, the Option Price shall not be less than one hundred ten percent (110%) of the Fair Market Value of Shares on the date of grant. 
  
 (d) Limitations on Exercise of Options.
Notwithstanding anything contained in this Plan to the contrary: 
  
 (i) Options may not be exercised until this Plan has been approved by the stockholders as provided in Section 9.8. 
  
 (ii) Options shall be exercisable in full or in such equal or unequal installments as the Administrator shall determine; provided that if
a Participant does not purchase all of the Shares which the Participant is entitled to purchase on a certain date or within an established installment period, the Participant’s right to purchase any unpurchased Shares shall continue during the
Award Term (taking into account any early termination of such Award Term which may be provided for under this Plan); provided, further that a Participant who is not an officer, director or consultant shall have the right to exercise at least 20% of
the Options granted per year over five (5) years from the grant date. 
  

 -11- 

 (e) Method of Exercising Options. 
  
 (i) Options shall be exercised by a written notice,
delivered to the Company at its principal office located at 18872 MacArthur Blvd., Irvine, California, 92612-1400, Attn: Legal Department or such other address that may be designated by the Company, specifying the number of Shares to be purchased
and tendering payment in full for such Shares. Payment may be tendered in cash or by certified, bank cashier’s or teller’s check or by Shares (valued at Fair Market Value as of the date of tender) that the Participant has owned for at
least six months, or some combination of the foregoing or such other form of consideration which has been approved by the Administrator, including any cashless exercise mechanism or a promissory note given by the Participant and approved by the
Administrator. The right to deliver in full or partial payment of such Option Price any consideration other than cash shall be limited to such frequency as the Administrator shall determine in its sole discretion from time to time. In the event all
or part of the Option Price is paid in Shares, any excess of the value of such Shares over the Option Price will be returned to the Participant as follows: 
  
 (A) any whole Share remaining in excess of the Option Price will be returned in kind, and may be represented by one or more share
certificates; and 
  
 (B) any partial Shares
remaining in excess of the Option Price will be returned in cash. 
  
 (ii) In the event a Participant pays all or part of the Option Price in Shares, the Administrator shall be entitled as it deems appropriate but solely in its discretion, to award to the Participant additional Options
equal to the number of Shares tendered to exercise, provided such Option has an Option Price equal to Fair Market Value. 
  
 (f) Buyout Provisions. Subject to stockholder approval for a broad-based offer and to any other approval requirements that may
apply (in either case, as determined by the Administrator in its sole discretion), the Administrator may at any time offer to buy out an Option, in exchange for a payment in cash or Shares, based on such terms and conditions as the Administrator
shall establish and communicate to the Participant at the time that such offer is made. In addition, subject to stockholder approval for a broad-based offer and to any other approval requirements that may apply (in either case, as determined by the
Administrator in its sole discretion) if the Fair Market Value for Shares subject to an Option is more than 50% below their Option Price for more than 30 consecutive business days, the Administrator may unilaterally terminate and cancel the Option
either (i) by paying the Participant, in cash or Shares, an amount not less than the Black-Scholes value of the vested portion of the Option, or (ii) by irrevocably committing to grant a new Option, on a designated date more than six months after
such termination and cancellation of such Option (but only if the Participant’s service as an Employee or Service Provider has not terminated prior to such designated date), on substantially the same terms as the cancelled Option, provided that
the per Share 

  

 -12- 

 
Option Price for the new Option shall equal the per Share Fair Market Value of a Share on the date the new grant occurs. 
  
 6.5 Stock Appreciation Rights. 
  
 (a) Granting of Stock Appreciation Rights. In
its sole discretion, the Administrator may from time to time grant Stock Appreciation Rights to Participants either in conjunction with, or independently of, any Options granted under this Plan. A Stock Appreciation Right granted in conjunction with
an Option may be an alternative right wherein the exercise of the Option terminates the Stock Appreciation Right to the extent of the number of Shares purchased upon exercise of the Option and, correspondingly, the exercise of the Stock Appreciation
Right terminates the Option to the extent of the number of Shares with respect to which the Stock Appreciation Right is exercised. Alternatively, a Stock Appreciation Right granted in conjunction with an Option may be an additional right wherein
both the Stock Appreciation Right and the Option may be exercised. A Stock Appreciation Right may not be granted in conjunction with an Incentive Stock Option under circumstances in which the exercise of the Stock Appreciation Right affects the
right to exercise the Incentive Stock Option or vice versa, unless the Stock Appreciation Right, by its terms, meets all of the following requirements: 
  
 (i) the Stock Appreciation Right will expire no later than the Incentive Stock Option; 
  
 (ii) the Stock Appreciation Right may be for no more than
the difference between the Option Price of the Incentive Stock Option and the Fair Market Value of the Shares subject to the Incentive Stock Option at the time the Stock Appreciation Right is exercised; 
  
 (iii) the Stock Appreciation Right is transferable only when
the Incentive Stock Option is transferable, and under the same conditions; 
  
 (iv) the Stock Appreciation Right may be exercised only when the Incentive Stock Option may be exercised; and 
  
 (v) the Stock Appreciation Right may be exercised only when the Fair Market Value of the Shares subject to the Incentive Stock Option
exceeds the Option Price of the Incentive Stock Option. 
  
 (b) Option Price. The Option Price as to any particular Stock Appreciation Right shall not be less than the Fair Market Value of the Shares on the date of grant. 
  
 (c) Timing of Exercise. The provisions of Section
6.4(d) regarding the period of exercisability of Options are incorporated by reference herein, and shall determine the period of exercisability of Stock Appreciation Rights. 
  

 -13- 

 (d) Exercise of Stock Appreciation Rights. A Stock Appreciation Right granted
hereunder shall be exercisable at such times and under such conditions as shall be permissible under the terms of this Plan and of the Award Agreement granted to a Participant, provided that a Stock Appreciation Right may not be exercised for a
fractional Share. Upon exercise of a Stock Appreciation Right, the Participant shall be entitled to receive, without payment to the Company, an amount equal to the excess of (or, in the discretion of the Committee if provided in the Award Agreement,
a portion of) the excess of the then aggregate Fair Market Value of the number of Shares with respect to which the Participant exercises the Stock Appreciation Right, over the aggregate Option Price of such number of optioned Shares. This amount
shall be payable by the Company, at the discretion of the Committee, in cash or in Shares valued at the then Fair Market Value thereof, or any combination thereof. 
  
 (e) Procedure for Exercising Stock Appreciation Rights. To the extent not inconsistent herewith, the
provisions of Section 6.4(e) as to the procedure for exercising Options are incorporated by reference, and shall determine the procedure for exercising Stock Appreciation Rights. 
  
 (f) Buy-out. Subject to stockholder approval for broad-based offer and any other approval
requirements that may apply (in either case, as determined by the Administrator in its sole discretion), the Administrator has the same discretion to buy-out Stock Appreciation Rights as it has to take such actions with respect to Options.

  
 6.6 Performance Awards. 
  
 (a) Performance Units. The Administrator may in its
discretion grant Performance Units to any eligible Participant and shall evidence such grant in an Award Agreement that is delivered to the Participant which sets forth the terms and conditions of the Award. A Performance Unit is an Award (which may
be a Performance Grant) which is based on the achievement of specific goals with respect to the Company or any Affiliate or individual performance of the Participant, or a combination thereof, over a specified period of time. The maximum Performance
Unit compensation that may be paid to any one Participant with respect to any one Performance Period (hereinafter defined) shall be 200,000 Shares and $2,500,000 in cash. 
  
 (b) Performance Compensation Awards. The Administrator may, in its discretion, at the time of grant
of a Performance Unit, designate such Award as a “Performance Compensation Award” in order that such Award will constitute “qualified performance-based compensation” under Code Section 162(m), in which event the Administrator
shall have the power to grant such Performance Compensation Award upon terms and conditions that qualify it as “qualified performance-based compensation” within the meaning of Code Section 162(m). With respect to each such Performance
Compensation Award, the Administrator shall establish, in writing within the time required under Code Section 162(m), a “Performance Period,” “Performance Measure(s)”, and “Performance Formula(e)” (each such term being
hereinafter defined). Once established for a Performance Period, the Performance Measure(s) and Performance Formula(e) shall not be amended or otherwise modified to the extent such 

  

 -14- 

 
amendment or modification would cause the compensation payable pursuant to the Award to fail to constitute qualified performance-based compensation under
Code Section 162(m). 
  
 A Participant shall be eligible to
receive payment in respect of a Performance Compensation Award only to the extent that the Performance Measure(s) for such Award are achieved and the Performance Formula(e) as applied against such Performance Measure(s) determines that all or some
portion of such Participant’s Award has been earned for the Performance Period. As soon as practicable after the close of each Performance Period, the Administrator shall review and certify in writing whether, and to what extent, the
Performance Measure(s) for the Performance Period have been achieved and, if so, determine and certify in writing the amount of the Performance Compensation Award to be paid to the Participant and, in so doing, may use negative discretion to
decrease, but not increase, the amount of the Award otherwise payable to the Participant based upon such performance. The maximum Performance Compensation Award for any one Participant for any one Performance Period shall be 200,000 Shares and
$2,500,000 in cash. 
  
 (c) Definitions.

  
 (i) “Performance Formula” means,
for a Performance Period, one or more objective formulas or standards established by the Administrator for purposes of determining whether or the extent to which an Award has been earned based on the level of performance attained or to be attained
with respect to one or more Performance Measure(s). Performance Formulae may vary from Performance Period to Performance Period and from Participant to Participant and may be established on a stand-alone basis, in tandem or in the alternative.

  
 (ii) “Performance Measure” means
one or more of the following selected by the Administrator to measure Company, Affiliate, and/or business unit performance for a Performance Period, whether in absolute or relative terms (including, without limitation, terms relative to a peer group
or index): basic, diluted, or adjusted earnings per share; sales or revenue; earnings before interest, taxes, and other adjustments (in total or on a per share basis); basic or adjusted net income; returns on equity, assets, capital, revenue or
similar measure; economic value added; working capital; total stockholder return; and product development, product market share, research, licensing, litigation, human resources, information services, mergers, acquisitions, sales of assets of
Affiliates or sales of business units. Each such measure shall be to the extent applicable, determined in accordance with generally accepted accounting principles as consistently applied by the Company (or such other standard applied by the
Administrator) and, if so determined by the Administrator, and in the case of a Performance Compensation Award, to the extent permitted under Code Section 162(m), adjusted to omit the effects of extraordinary items, gain or loss on the disposal of a
business segment, unusual or infrequently occurring events and transactions and cumulative effects of changes in accounting principles. Performance Measures may vary from 

  

 -15- 

 
Performance Period to Performance Period and from Participant to Participant, and may be established on a stand-alone basis, in tandem or in the alternative.

  
 (iii) “Performance Period” means
one or more periods of time (of not less than one fiscal year of the Company), as the Administrator may designate, over which the attainment of one or more Performance Measure(s) will be measured for the purpose of determining a Participant’s
rights in respect of an Award. 
  
 6.7 Non-Transferability.

  
 (a) General. Except as set forth in
Section 6.7(c) below, Awards may not be sold, pledged, assigned, hypothecated, transferred, or otherwise encumbered or disposed of other than by will or by the laws of descent or distribution, and except as specifically provided in this Plan or the
applicable Award Agreement. During a Participant’s lifetime, an Option or Stock Appreciation Right shall only be exercisable by the Participant. Furthermore, unless the applicable Award Agreement provides otherwise, additional Shares or other
property distributed to the Participant in respect of Awards, as dividends or otherwise, shall be subject to the same restrictions applicable to such Award. 
  
 (b) Special Rule for Beneficiaries. The designation of a beneficiary by a Participant will not constitute a transfer. In the
absence of a validly designated beneficiary, a Participant’s beneficiary shall be his or her estate. 
  
 (c) Limited Transferability Rights. To the extent specifically authorized by the Administrator in an Award Agreement or amendment
thereto, any Participant may transfer Awards (other than Incentive Stock Options) either by gift to immediate family, or by instrument to an inter vivos or testamentary trust in which the Awards are to be passed, upon the death of the
grantor, to beneficiaries who are immediate family (or otherwise approved by the Administrator). A permitted transfer of an Award (including but not limited to a transfer by will or by the laws of descent and distribution) shall not be effective to
bind the Company unless the Company shall have been furnished with written notice thereof and an authenticated copy of such evidence (e.g., an executed will or trust) as the Administrator may deem necessary to establish the validity of the transfer
and the acceptance by the transferee of the terms and conditions of such Award. 
  
 6.8 Award Term. The Award Term shall be determined by the Administrator at the time of grant, subject to any limitations imposed by this Plan, but in any event shall not be more than ten years from the date
such Award is granted (five years under the circumstances described in Section 4.3(b)). Awards may be subject to earlier termination as provided in this Plan. 
  

6.9 Withholding Tax. 
  
 (a) In the event the Company determines that it is required to withhold income tax in connection with an Award (for instance, as a result
of the exercise of an Option as a condition for the exercise thereof), the Participant may be required to make arrangements satisfactory to the Company to enable it to satisfy such withholding 

  

 -16- 

 
requirements. Payment of such withholding requirements may be made, in the discretion of the Administrator, (i) in cash, (ii) by delivery of Shares
registered in the name of the Participant having a Fair Market Value at the time the Participant becomes subject to income tax equal to the amount to be withheld and that have been held by the Participant for more than six months, (iii) by the
Company retaining or not issuing such number of Shares subject to the Award as have a Fair Market Value at the time the Participant becomes subject to income tax equal to the amount to be withheld or (iv) any combination of (i), (ii) and (iii)
above. 
  
 (b) The Administrator shall be
entitled as it deems appropriate to make available for issuance under this Plan Shares tendered by a Participant as payment of the price for any Shares used to satisfy the Company’s withholding requirements. 
  
 6.10 Rights in the Event of Sale, Merger or Other Reorganization.
Except as expressly provided in Section 5.2 and this Section, the Participant shall have no rights by reason of any subdivision or consolidation of shares of stock of any class, the payment of any stock dividend or any other increase or decrease in
the number of shares of stock of any class or by reason of any dissolution, liquidation, merger or consolidation or spin-off of assets or stock of another corporation, and any issue by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or price (if applicable) of Shares subject to an Award. The grant of an Award pursuant to this Plan shall
not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any part of
its business or assets. In any such event: 
  
 (a) Unless otherwise provided in the Award Agreement for any given Award, notwithstanding anything in the Plan to the contrary, upon any such merger (other than a merger in which the Company is the surviving corporation as described in
Section 5.2(b) and under the terms of which the shares of Common Stock outstanding immediately prior to the merger remain outstanding and unchanged), consolidation, or sale or transfer of assets, all rights of the Participant with respect to the
unvested portion of any Restricted Share, Restricted Units, or Deferred Share Award or the unexercised portion of any Stock Appreciation Right or Option shall become immediately vested, and any Option or Stock Appreciation Right may be exercised
immediately, except to the extent that any agreement or undertaking of any party to any such merger, consolidation, or sale or transfer of assets, shall make specific provision for the assumption of the obligations of the Company with respect to
this Plan and the rights of Participants with respect to Awards granted hereunder. 
  
 (b) Unless otherwise provided in the Award Agreement for any given Award, upon any such liquidation or dissolution, all rights of the
Participant with respect to the unvested portion of any Award shall wholly and completely terminate and all Awards shall be canceled at the time of any such liquidation or dissolution, except to the extent that any plan pursuant to which such
liquidation or dissolution is effected, shall make 

  

 -17- 

 
specific provision with respect to this Plan and the rights of Participants with respect to Awards granted hereunder. 
  
 (c) Notwithstanding anything to the contrary herein, to the
extent provided in the Award Agreement for any given Award, upon a Change of Control (as defined herein), (i) all rights of the Participant with respect to the unvested portion of any Restricted Share, Restricted Unit, or Deferred Share Award, and
the unexercised portion of any Option or Stock Appreciation Rights shall fully vest and become exercisable as provided in such Award upon the effective date of any such Change of Control, (ii) the Company will honor any special distribution election
that the Participant makes more than 90 days before the Change in Control, provided the distribution form is complete within five years thereafter, and (iii) the Company shall pay the Participant an amount reasonably expected to hold the Participant
harmless from any excise taxes imposed on the Participant under Section 4999 of the Code, applicable regulations, or any successor thereto. 
  
 Notwithstanding the foregoing, the holder of any such Award or right theretofore granted and still outstanding shall have the right immediately prior to
the effective date of such merger, consolidation, sale or transfer of assets, liquidation or dissolution to pay the purchase or exercise price, if any, for such Award in whole or in part without regard to any installment provision that may have been
made part of the terms and conditions of such Award or right; provided, that any conditions precedent to such purchase set forth in the Award Agreement have occurred or been waived. In no event, however, may any Incentive Stock Option that becomes
exercisable pursuant to this Section 6.10 be exercised, in whole or in part, later than the date preceding the tenth anniversary date of the grant thereof, and in no case may an Incentive Stock Option granted to a Participant described in Section
4.3 be exercised in whole or in part, later than the date preceding the fifth anniversary date of the grant thereof. 
  
 (d) Definition of “Change in Control.” For purposes of this Plan, “Change in Control” shall be defined as:

  
 A. When any “person” as defined in
Section 3(a)(9) of the Exchange Act and as used in Sections 13(d) and 14(d) thereof (including a “group” as defined in Section 13(d) of the Exchange Act, but excluding the Company, any Subsidiary or any employee benefit plan sponsored or
maintained by the Company or any Subsidiary (including any trustee of such plan acting as trustee)), directly or indirectly, becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act, as amended from time to time), of
securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding securities. 
  
 B. The individuals who, as of January 1, 2004, constitute the Board (the “Incumbent Board”), cease for any reason to constitute
at least a majority of the Board; provided however, that any individual becoming a director subsequent to such date, whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at 

  

 -18- 

 
least a majority of the directors then comprising the Incumbent Board shall, for purposes of this section, be counted as a member of the Incumbent Board in
determining whether the Incumbent Board constitutes a majority of the Board. 
  
 C. Consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company or the acquisition of assets of another corporation (a “Business
Combination”), in each case, unless, following such Business Combination: 
  
 i. all or substantially all of the individuals and entities who were the beneficial owners of the then outstanding shares of common stock
of the Company and the beneficial owners of the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors immediately prior to such Business Combination beneficially own,
directly or indirectly, more than fifty percent (50%) of the then outstanding shares of common stock and the combined voting power of the then outstanding securities entitled to vote generally in the election of directors, respectively, as the case
may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or
indirectly or through one or more subsidiaries); and 
  
 ii. no person (excluding any employee benefit plan or related trust of the Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, fifty percent (50%) or more of the then outstanding
shares of common stock of the corporation resulting from such Business Combination or the combined voting power of such corporation except to the extent that such ownership existed prior to the Business Combination; or 
  
 D. Approval by the stockholders of the Company of a complete
liquidation or dissolution of the Company. 
  
 6.11 Restricted
Share, Restricted Unit, and Deferred Share Award Rights in the Event of Death, Total and Permanent Disability, or Termination. Unless otherwise provided in an Award Agreement for any given Restricted Share, Restricted Unit, or Deferred Share
Award, if a Participant’s employment or business relationship with or service to the Company is terminated on account of the Participant’s death, Total and Permanent Disability, retirement, or without cause (as determined by the
Administrator based on any definitions utilized by the Company in any other plan or written agreement), vesting on all outstanding Restricted Share, Restricted Unit, and Deferred Share Awards may accelerate to 100% at the discretion of the
Administrator. 
  

 -19- 

 6.12 Option and Stock Appreciation Right Award Rights in the Event of Death, Total and Permanent
Disability, or Termination. 
  
 (a) Rights
in the Event of Death. Unless otherwise provided in the Award Agreement for any given Option or Stock Appreciation Right, if a Participant’s employment or business relationship with or service to the Employer Company or service as a member
of the Board is terminated on account of death, the person or persons who shall have acquired the right, by will or the laws of descent and distribution, to exercise the Participant’s Options shall continue to have (subject to Sections 6.4(b)
and 6.4(d) above) the right, for a period of at least six (6) months from the date of termination by death or such longer period (if any) as may be specified in the applicable Award Agreement, to exercise any Options which such Participant would
have been entitled to exercise on the Participant’s death. At the expiration of such period any such Options or Stock Appreciation Rights which remain unexercised shall expire. Unless the Administrator provides otherwise in the Award Agreement,
any Options or Stock Appreciation Rights that could not have been exercised by a Participant as of the Participant’s death may not be exercised. 
  
 (b) Rights in the Event of Total and Permanent Disability. Unless otherwise provided in the Award Agreement for any given Option or
Stock Appreciation Right, if a Participant’s employment or business relationship with or service to the Employer Company or service as a member of the Board is terminated on account of Total and Permanent Disability, the Participant shall have
(subject to Sections 6.4(b) and 6.4(d) above) the right, for a period of at least six (6) months from the date of termination by disability or such longer period (if any) as may be specified in the applicable Award Agreement, to exercise any Options
or Stock Appreciation Rights which such Participant would have been entitled to exercise on the date of such Participant’s Total and Permanent Disability. At the expiration of such period any such Options or Stock Appreciation Rights which
remain unexercised shall expire. Unless the Administrator provides otherwise in the Award Agreement, any Options or Stock Appreciation Rights that could not have been exercised by a Participant on the date of such Participant’s Total and
Permanent Disability may not be exercised. 
  
 (c) Rights in the Event of Termination of Employment or Service. Unless otherwise provided in the Award Agreement for any given Option or Stock Appreciation Right, in the event that a Participant’s employment or business
relationship with or service to the Employer Company or service as a member of the Board terminates, other than by reason of death or Total and Permanent Disability and other than due to termination for “Cause,” the Participant shall have
(subject to Sections 6.4(b) and 6.4(d) above) the right, for a period of at least thirty (30) days from the date of such termination or such longer period (if any) as may be specified in the applicable Award Agreement, to exercise any Options or
Stock Appreciation Rights which such Participant would have been entitled to exercise on the date of such Participant’s termination. At the expiration of such period any such Options which remain unexercised shall expire. Unless the
Administrator provides otherwise in the Award Agreement any Options or Stock Appreciation Rights that could not have been exercised by a Participant on the date of such Participant’s termination of employment or service as a member of the Board
or 

  

 -20- 

 
business relationship may not be exercised. Notwithstanding the foregoing, if the employment or service of or business relationship with a Participant is
terminated for “Cause” by the Employer Company, the Company may notify the Participant that any Options not exercised prior to the termination are cancelled. For purposes hereof and unless the Administrator provides otherwise in the Award
Agreement, a termination of service or business relationship for “Cause” shall include dismissal as a result of (1) Participant’s conviction of any crime or offense involving money or other property of the Company or its subsidiaries
or which constitutes a felony in the jurisdiction involved; (2) Participant’s gross negligence, gross incompetence or willful gross misconduct in the performance of his or her duties; or (3) Participant’s willful and material failure or
refusal to perform his or her duties. 
  
 SECTION 7 
  
 SHARES ISSUED PURSUANT TO AN AWARD 
  
 7.1 Issuance of Certificates. The Company shall not be required to
issue or deliver any certificate for Shares issued pursuant to any Award including upon exercise of a Stock Appreciation Right or Option, or any portion thereof, prior to fulfillment of all of the following applicable conditions: 
  
 (a) The admission of such Shares to listing on all stock
exchanges or markets on which the Shares are then listed to the extent such admission is necessary; 
  
 (b) The completion of any registration or other qualification of such Shares under any federal or state securities laws or under the
rulings or regulations of the Securities and Exchange Commission or any other governmental regulatory body, which the Board shall in its sole discretion deem necessary or advisable, or the determination by the Board in its sole discretion that no
such registration or qualification is required; 
  
 (c) The obtaining of any approval or other clearance from any federal or state governmental agency which the Board shall, in its sole discretion, determine to be necessary or advisable; and 
  
 (d) The lapse of such reasonable period of time which the
Board or Committee may establish for reasons of administrative convenience following the date a Participant becomes entitled to receive unrestricted Shares pursuant to an Award. 
  
 7.2 Compliance with Securities and Other Laws. In no event shall the Company be required to sell, issue or deliver
Shares pursuant to Awards if in the opinion of the Company the issuance thereof would constitute a violation by either the Participant or the Company of any provision of any law or regulation of any governmental authority or any securities exchange
or market. As a condition of any sale or issuance of Shares pursuant to Awards, the Company may place legends on the Shares, issue stop-transfer orders and require such agreements or undertakings from the Participant as the Company may deem
necessary or advisable to assure compliance with any such law or regulation, including if the Company or its counsel deems it appropriate, representations from the Participant that the Participant is acquiring the Shares 

  

 -21- 

 
solely for investment and not with a view to distribution and that no distribution of the Shares acquired by the Participant will be made unless registered
pursuant to applicable federal and state securities laws or unless, in the opinion of counsel to the Company, such registration is unnecessary. 
  
 7.3 Requirements in the Event of a Disposition of Incentive Stock Option Shares. Any Participant, or person representing such Participant, who
sells, exchanges, transfers or otherwise disposes of any Shares acquired pursuant to the exercise of an Incentive Stock Option within two (2) years following the grant of such Incentive Stock Option or within one (1) year following the actual
transfer of such Shares to the Participant, shall be obligated to notify the Company in writing of the date of disposition, the number of Shares so disposed and the amount of consideration received as a result of such disposition. The Company shall
have the right to take whatever reasonable action it deems appropriate against a Participant, including early termination of any Options which remain outstanding, in order to recover any additional taxes the Company incurs as a result of such
Participant failure to so notify the Company. 
  
 7.4.
Legend. All certificates for Shares purchased upon the exercise of an Incentive Stock Option may bear a legend indicating that such Shares were issued pursuant to an Incentive Stock Option grant. 
  
 SECTION 8 
  
 TERMINATION, AMENDMENT AND MODIFICATION OF PLAN 
  
 8.1 Board Termination, Amendment and Modification of Plan. The Board may at any time amend or modify this Plan;
provided, however, that no such action of the Board shall take effect without approval of the stockholders of the Company to the extent such approval is required by applicable law or determined by the Board to be necessary or desirable for any
reason (including but not limited to the satisfaction of listing requirements on a stock exchange). Notwithstanding anything to the contrary, the Board shall be entitled to adjust the Option Price with respect to any outstanding Option or Stock
Appreciation Right at any time provided that the Participant shall so consent, subject to the approval of the stockholders of the Company if the modification reduces the Option Price (except for any reduction of the Option Price pursuant to the
provisions of Section 5.2 hereof). 
  
 8.2 Plan
Termination. Unless terminated earlier as provided in Section 8.1, this Plan shall terminate ten (10) years from the date this Plan is adopted by the Board and no Award shall be granted under this Plan after such expiration date. Termination of
this Plan shall not alter or impair any of the rights or obligations under any Award theretofore granted under this Plan unless the Participant shall so consent. 
  
 8.3 Effect of Termination, Amendment or Modification of Plan. Notwithstanding Sections 8.1 and 8.2, no termination,
amendment or modification of this Plan shall in any manner affect any Award theretofore granted under this Plan without the written consent of the Participant or a person who shall have acquired the right to the Award by will or the laws of descent
and distribution. 
  

 -22- 

 SECTION 9 
  
 MISCELLANEOUS 
  
 9.1 Non-Assignability of Awards. No Award shall be assignable or transferable by the Participant except pursuant to Section 6.7 hereof. 

 
 9.2 Leaves of Absence. Unless the Administrator determines
otherwise, the vesting of an Award granted under this Plan shall not be tolled during any unpaid leave of absence taken by a Participant. 
  
 9.3 No Rights to Employment or Provide Service. Nothing in this Plan or in any Award granted hereunder or in any Award Agreement relating thereto
shall confer upon any individual the right to continue employment with or to provide service to the Employer Company or service as a member of the Board. 
  
 9.4 Purchase Offer. The Administrator may offer to purchase, for cash or Shares, any Award granted hereunder and such offer to purchase any Award
shall be on such terms and conditions as the Administrator establishes and communicates to the Participant at the time the offer is extended to the Participant. 
  

9.5 Binding Effect. This Plan shall be binding upon the successors and assigns of the Company. 
  
 9.6 Singular, Plural, Gender. Whenever used herein, except where the
context clearly indicates to the contrary, nouns in the singular shall include the plural, and the masculine pronoun shall include the feminine gender. 
  
 9.7 Headings. Headings of the Sections hereof are inserted for convenience and reference and constitute no part of this Plan. 
  
 9.8 Effective Date; Ratification by Stockholders. The terms of this
Plan shall become effective upon the approval of the stockholders of the Company, by a majority of the votes cast at a meeting held within 12 months after the date on which this Plan received Board approval. If this Plan is not duly approved by the
Company’s stockholders, this Plan shall become null and void and of no force or effect. 
  
 9.9 Rights as Stockholder. Any Participant or transferee of an Award shall have no rights as a stockholder with respect to any Shares subject to such Award prior to the date on which the Participant becomes
entitled to receive unrestricted Shares or exercise Options or Stock Appreciation Rights pursuant to the Plan, as provided herein. 
  
 9.10 Applicable Law. This Plan and the Awards granted hereunder shall be interpreted, administered and otherwise subject to the laws of the State
of Delaware, without giving effect to the principles of conflict of laws thereof. 
  
 9.11 Reports. The Company will comply with all applicable reporting and tax requirements applicable to Awards under the Code. 
  

 -23-

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