8x8 2009 Annual Report Download - page 85

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Participant’ s Service shall not be deemed to have terminated if the Participant takes any military
leave, sick leave, or other bona fide leave of absence approved by the Company; provided,
however, that if any such leave exceeds ninety (90) days, on the one hundred eighty-first (181st)
day following the commencement of such leave any Incentive Stock Option held by the
Participant shall cease to be treated as an Incentive Stock Option and instead shall be treated
thereafter as a Nonstatutory Stock Option unless the Participant’ s right to return to Service is
guaranteed by statute or contract. Notwithstanding the foregoing, unless otherwise designated by
the Company or required by law, a leave of absence shall not be treated as Service for purposes
of determining vesting under the Participant’ s Option Agreement or Stock Purchase Agreement.
Except as otherwise provided by the Board, in its discretion, the Participant’ s Service shall be
deemed to have terminated either upon an actual termination of Service or upon the corporation
for which the Participant performs Service ceasing to be a Participating Company. Subject to the
foregoing, the Company, in its discretion, shall determine whether the Participant’ s Service has
terminated and the effective date of and reason for such termination.
(bb) “Stock” means the common stock of the Company, as adjusted
from time to time in accordance with Section 4.2.
(cc) “Stock Purchase Agreement” means a written agreement between
the Company and a Participant setting forth terms, conditions and restrictions of the Stock
Purchase Right granted to the Participant and any shares acquired upon the exercise thereof. A
Stock Purchase Agreement may consist of a form of “Notice of Grant of Stock Purchase Right”
and a form of “Stock Purchase Agreement” incorporated therein by reference, or such other form
or forms as the Board may approve from time to time.
(dd) “Stock Purchase Right” means a right granted under Section 7 to
purchase Stock pursuant to the terms and conditions of the Plan.
(ee) “Subsidiary Corporation” means any present or future “subsidiary
corporation” of the Company, as defined in Section 424(f) of the Code.
(ff) “Ten Percent Stockholder” means a person who, at the time an
Award is granted to such person, owns stock possessing more than ten percent (10%) of the total
combined voting power (as defined in Section 194.5 of the California Corporations Code) of all
classes of stock of a Participating Company (other than an Affiliate) within the meaning of
Section 422(b)(6) of the Code.
2.2 Construction. Captions and titles contained herein are for convenience
only and shall not affect the meaning or interpretation of any provision of the Plan. Except when
otherwise indicated by the context, the singular shall include the plural and the plural shall
include the singular. Use of the term “or” is not intended to be exclusive, unless the context
clearly requires otherwise.
3. ADMINISTRATION.
3.1 Administration by the Board. The Plan shall be administered by the
Board. All questions of interpretation of the Plan or of any Award shall be determined by the
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