ZORAN CORP \DE\
EX-10.3
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>j1314_ex10d3.htm
<DESCRIPTION>EX-10.3
<TEXT>
<html>

<head>
<title>Prepared by MerrillDirect</title>
</head>

<body link=blue vlink=purple>

<div>

<p align=right><b><font size=2>Exhibit
10.3</font></b></p>

<p align=center><b><font size=2>ZORAN
CORPORATION</font></b></p>

<p align=center><b><font size=2>AMENDED
AND RESTATED</font></b></p>

<p align=center><b><font size=2>1995
EMPLOYEE STOCK PURCHASE PLAN</font></b></p>

<p align=center><b><font size=2>(As
Amended Through June 29, 2001)</font></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><u>Establishment,
Purpose and Term of Plan</u></b>.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Establishment.</i></b>&nbsp; The Zoran Corporation 1995 Employee Stock Purchase Plan was
initially established effective December&nbsp;14, 1995 (the &#147;<b>Effective Date</b>&#148;), the effective date of the
initial registration by the Company of its Stock under Section&nbsp;12 of the
Exchange Act (the &#147;<b>Initial Plan</b>&#148;).&nbsp; The Initial Plan was amended and restated in
its entirety as the Zoran Corporation Amended and Restated 1995 Employee Stock
Purchase Plan (the &#147;<b>Plan</b>&#148;)
effective as of the date of commencement of the first Offering under the Plan
following approval of the Plan by the stockholders of the Company on
June&nbsp;6, 1996.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Purpose.</i></b>&nbsp;
The purpose of the Plan to provide Eligible Employees of the
Participating Company Group with an opportunity to acquire a proprietary
interest in the Company through the purchase of Stock.&nbsp; The Company intends that the Plan shall
qualify as an &#147;employee stock purchase plan&#148; under Section&nbsp;423 of the Code
(including any amendments or replacements of such section), and the Plan shall
be so construed.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Term of Plan.</i></b>&nbsp; The Plan shall continue in effect until the earlier of its
termination by the Board or the date on which all of the shares of Stock
available for issuance under the Plan have been issued.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><u>Definitions
and Construction</u></b>.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Definitions</i></b>.&nbsp;
Any term not expressly defined in the Plan but defined for purposes of
Section&nbsp;423 of the Code shall have the same definition herein.&nbsp; Whenever used herein, the following terms
shall have their respective meanings set forth below:</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#147;<b>Board</b>&#148;
means the Board of Directors of the Company.&nbsp;
If one or more Committees have been appointed by the Board to administer
the Plan, &#147;Board&#148; also means such Committee(s).</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#147;<b>Code</b>&#148;
means the Internal Revenue Code of 1986, as amended, and any applicable
regulations promulgated thereunder.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#147;<b>Committee</b>&#148;
means a committee of the Board duly appointed to administer the Plan and having
such powers as shall be specified by the Board.&nbsp; Unless the powers of the Committee have been specifically
limited, the Committee shall have all of the powers of the Board granted herein,
including, without limitation, the power to amend or terminate the Plan at any
time, subject to the terms of the Plan and any applicable limitations imposed
by law.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#147;<b>Company</b>&#148;
means Zoran Corporation, a Delaware corporation, or any successor corporation
thereto.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#147;<b>Compensation</b>&#148;
means, with respect to an Offering Period under the Plan, all amounts paid in
cash in the form of base salary during such Offering Period before deduction
for any contributions to any plan maintained by a Participating Company and
described in Section 401(k) or Section&nbsp;125 of the Code.&nbsp; Compensation shall not include commissions,
overtime, bonuses, annual awards, other incentive payments, shift premiums,
reimbursements of expenses, allowances, long-term disability, workers&#146;
compensation or any amount deemed received without the actual transfer of cash
or any amounts directly or indirectly paid pursuant to the Plan or any other
stock purchase or stock option plan.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#147;<b>Eligible
Employee</b>&#148; means an Employee who meets the requirements set forth in
Section&nbsp;5 for eligibility to participate in the Plan.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#147;<b>Employee</b>&#148;
means any person treated as an employee (including an officer or a Director who
is also treated as an employee) in the records of a Participating Company and
for purposes of Section&nbsp;423 of the Code; provided, however, that neither
service as a Director nor payment of a director&#146;s fee shall be sufficient to
constitute employment for purposes of the Plan.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#147;<b>Exchange
Act</b>&#148; means the Securities Exchange Act of 1934, as amended.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#147;<b>Fair
Market Value</b>&#148; means, as of any date, if there is then a public
market for the Stock, the closing price of a share of Stock (or the mean of the
closing bid and asked prices of a share of Stock if the Stock is so reported
instead) as reported on the National Association of Securities Dealers
Automated Quotation (&#147;<b>NASDAQ</b>&#148;)
System, the NASDAQ National Market System or such other national or regional
securities exchange or market system constituting the primary market for the
Stock.&nbsp; If the relevant date does not fall
on a day on which the Stock is trading on NASDAQ, the NASDAQ National Market
System or other national or regional securities exchange or market system, the
date on which the Fair Market Value shall be established shall be the last day
on which the Stock was so traded prior to the relevant date, or such other
appropriate day as shall be determined by the Board, in its sole
discretion.&nbsp; If there is then no public
market for the Stock, the Fair Market Value on any relevant date shall be as
determined by the Board without regard to any restriction other than a
restriction which, by its terms, will never lapse.&nbsp; Notwithstanding the foregoing, the Fair Market Value per share of
Stock on the Effective Date shall be deemed to be the public offering price set
forth in the final prospectus filed with the Securities and Exchange Commission
in connection with the initial public offering of the Stock.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#147;<b>Offering</b>&#148;
means an offering of Stock as provided in Section&nbsp;6.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#147;<b>Offering
Date</b>&#148; means, for any Offering Period, the first day of such Offering
Period.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#147;<b>Offering
Period</b>&#148; means a period determined in accordance with
Section&nbsp;6.1.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#147;<b>Parent
Corporation</b>&#148; means any present or future &#147;parent corporation&#148; of the
Company, as defined in Section 424(e) of the Code.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#147;<b>Participant</b>&#148;
means an Eligible Employee participating in the Plan.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (o)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#147;<b>Participating
Company</b>&#148; means the Company or any Parent Corporation or Subsidiary
Corporation which the Board determines should be included in the Plan.&nbsp; The Board shall have the sole and absolute
discretion to determine from time to time what Parent Corporations or
Subsidiary Corporations shall be Participating Companies.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (p)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#147;<b>Participating
Company Group</b>&#148; means, at any point in time, the Company and all
other corporations collectively which are then Participating Companies.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (q)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#147;<b>Purchase
Date</b>&#148; means, for any Purchase Period, the last day of such Purchase
Period.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (r)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#147;<b>Purchase
Period</b>&#148; means a period determined in accordance with
Section&nbsp;6.2.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (s)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#147;<b>Purchase
Price</b>&#148; means the price at which a share of Stock may be purchased
pursuant to the Plan, as determined in accordance with Section&nbsp;9.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (t)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#147;<b>Purchase
Right</b>&#148;&nbsp; means an option
pursuant to the Plan to purchase such shares of Stock as provided in
Section&nbsp;8 which may or may not be exercised during an Offering
Period.&nbsp; Such option arises from the
right of a Participant to withdraw such Participant&#146;s accumulated payroll
deductions not previously applied to the purchase of Stock under the Plan (if
any) and terminate participation in the Plan or any Offering therein at any
time during an Offering Period.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (u)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#147;<b>Stock</b>&#148;
means the common stock, par value $0.001, of the Company, as adjusted from time
to time in accordance with Section&nbsp;4.2.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#147;<b>Subsidiary
Corporation</b>&#148; means any present or future &#147;subsidiary corporation&#148; of
the Company, as defined in Section 424(f) of the Code.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Construction.</i></b>&nbsp; Captions and titles contained herein are for convenience only and
shall not affect the meaning or interpretation of any provision of the
Plan.&nbsp; Except when otherwise indicated
by the context, the singular shall include the plural, the plural shall include
the singular, and use of the term &#147;or&#148; shall include the conjunctive as well as
the disjunctive.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><u>Administration</u></b>.&nbsp; The Plan shall be administered by the Board,
including any duly appointed Committee of the Board.&nbsp; All questions of interpretation of the Plan or of any Purchase
Right shall be determined by the Board and shall be final and binding upon all
persons having an interest in the Plan or such Purchase Right.&nbsp; Subject to the provisions of the Plan, the
Board shall determine all of the relevant terms and conditions of Purchase
Rights granted pursuant to the Plan; provided, however, that all Participants
granted Purchase Rights pursuant to the Plan shall have the same rights and
privileges within the meaning of Section 423(b)(5) of the Code.&nbsp; All expenses incurred in connection with the
administration of the Plan shall be paid by the Company.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><u>Shares
Subject to Plan</u></b>.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Maximum Number of Shares Issuable</i>.</b>&nbsp; Subject to adjustment as provided in
Section&nbsp;4.2, the maximum aggregate number of shares of Stock that may be
issued under the Plan shall be five hundred fifty thousand (550,000) and shall
consist of authorized but unissued or reacquired shares of the Stock, or any
combination thereof.&nbsp; If an outstanding
Purchase Right for any reason expires or is terminated or canceled, the shares
of Stock allocable to the unexercised portion of such Purchase Right shall
again be available for issuance under the Plan.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Adjustments for Changes in Capital Structure.</i></b>&nbsp; In the event of any stock dividend, stock
split, reverse stock split, recapitalization, combination, reclassification or
similar change in the capital structure of the Company, or in the event of any
merger (including a merger effected for the purpose of changing the Company&#146;s
domicile), sale of assets or other reorganization in which the Company is a
party, appropriate adjustments shall be made in the number and class of shares
subject to the Plan, to the Offering Share Limit set forth in Section 8.1 and
to each Purchase Right and in the Purchase Price.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><u>Eligibility</u></b>.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Employees Eligible to Participate.</i></b>&nbsp; Any Employee of a Participating Company is
eligible to participate in the Plan except the following:</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employees who are customarily employed
by the Participating Company Group for twenty (20) hours or less per week;</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employees who are customarily employed
by the Participating Company Group for not more than five (5) months in any
calendar year; and</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employees who own or hold options to
purchase or who, as a result of participation in the Plan, would own or hold
options to purchase, stock of the Company or of any Parent Corporation or
Subsidiary Corporation possessing five percent (5%) or more of the total
combined voting power or value of all classes of stock of such corporation
within the meaning of Section 423(b)(3) of the Code.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Leased Employees Excluded.</i></b>&nbsp; Notwithstanding anything herein to the
contrary, any individual performing services for a Participating Company solely
through a leasing agency or employment agency shall not be deemed an &#147;Employee&#148;
of such Participating Company.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><u>Offerings</u></b>.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Offering Periods</i></b>.&nbsp; Except as otherwise set forth below, the Plan shall be
implemented by sequential Offerings of approximately twenty-four (24) months
duration (an &#147;<b>Offering Period</b>&#148;);
provided, however that the first Offering Period shall commence on the
Effective Date and end on October&nbsp;31, 1997 (the &#147;<b>Initial Offering Period</b>&#148;).&nbsp; Subsequent Offerings shall commence on the
first days of May and November of each year and end on the last days of the
second April and October, respectively, occurring thereafter.&nbsp; Notwithstanding the foregoing, the Board may
establish a different term for one or more Offerings or different commencing or
ending dates for such Offerings; provided, however, that no Offering may exceed
a term of twenty-seven (27) months.&nbsp; An
Employee who becomes an Eligible Employee after an Offering Period has
commenced shall not be eligible to participate in such Offering but may
participate in any subsequent Offering provided such Employee is still an
Eligible Employee as of the commencement of any such subsequent Offering.&nbsp; Eligible Employees may not participate in
more than one Offering at a time.&nbsp; In
the event the first or last day of an Offering Period is not a business day,
the Company shall specify the business day that will be deemed the first or
last day, as the case may be, of the Offering Period.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Purchase Periods.</i></b>&nbsp; Each Offering Period shall consist of four (4) consecutive
purchase periods of approximately six (6) months duration (individually, a &#147;<b>Purchase Period</b>&#148;).&nbsp; The Purchase Period commencing on the
Offering Date of the Initial Offering Period shall end on April 30, 1996.&nbsp; A Purchase Period commencing on the first
day of May shall end on the last day of the next following October.&nbsp; A Purchase Period commencing on the first
day of November shall end on the last day of the next following April.&nbsp; Notwithstanding the foregoing, the Board may
establish a different term for one or more Purchase Periods or different
commencing or ending dates for such Purchase Periods.&nbsp; In the event the first or last day of a Purchase Period is not a
business day, the Company shall specify the business day that will be deemed
the first or last day, as the case may be, of the Purchase Period.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Governmental Approval; Stockholder Approval.</i></b>&nbsp; Notwithstanding any other provision of the
Plan to the contrary, any Purchase Right granted pursuant to the Plan shall be
subject to (a)&nbsp;obtaining all necessary governmental approvals or
qualifications of the sale or issuance of the Purchase Rights or the shares of
Stock and (b)&nbsp;obtaining stockholder approval of the Plan.&nbsp; Notwithstanding the foregoing, stockholder
approval shall not be necessary in order to grant any Purchase Right granted in
the Plan&#146;s Initial Offering Period; provided, however, that the exercise of any
such Purchase Right shall be subject to obtaining stockholder approval of the
Plan.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><u>Participation
in the Plan</u></b>.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Initial Participation.</i></b>&nbsp; An Eligible Employee shall become a
Participant on the first Offering Date after satisfying the eligibility
requirements of Section&nbsp;5 and delivering to the Company&#146;s payroll office
or other office designated by the Company not later than the close of business
for such office on the last business day before such Offering Date (the &#147;<b>Subscription Date</b>&#148;) a subscription
agreement indicating the Employee&#146;s election to participate in the Plan and
authorizing payroll deductions.&nbsp; An
Eligible Employee who does not deliver a subscription agreement to the
Company&#146;s payroll or other designated office on or before the Subscription Date
shall not participate in the Plan for that Offering Period or for any
subsequent Offering Period unless such Employee subsequently enrolls in the
Plan by filing a subscription agreement with the Company by the Subscription
Date for such subsequent Offering Period.&nbsp;
The Company may, from time to time, change the Subscription Date as
deemed advisable by the Company in its sole discretion for proper
administration of the Plan.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Continued Participation.</i></b>&nbsp; A Participant shall automatically
participate in the Offering Period commencing immediately after the final
Purchase Date of each Offering Period in which the Participant participates
until such time as such Participant (a)&nbsp;ceases to be an Eligible Employee,
(b)&nbsp;withdraws from the Plan pursuant to Section&nbsp;13.2 or (c)&nbsp;terminates
employment as provided in Section&nbsp;14.&nbsp;
If a Participant automatically may participate in a subsequent Offering
Period pursuant to this Section&nbsp;7.2, then the Participant is not required
to file any additional subscription agreement for such subsequent Offering Period
in order to continue participation in the Plan.&nbsp;&nbsp; However, a Participant may file a subscription agreement with
respect to a subsequent Offering Period if the Participant desires to change
any of the Participant&#146;s elections contained in the Participant&#146;s then
effective subscription agreement.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><u>Right
to Purchase Shares</u></b>.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Purchase Right.</i></b>&nbsp; Except as set forth below, during an Offering Period each
Participant in such Offering Period shall have a Purchase Right consisting of
the right to purchase that number of whole shares of Stock arrived at by
dividing Fifty Thousand Dollars ($50,000) by the Fair Market Value of a share
of Stock on the Offering Date of such Offering Period; provided, however, that
such number shall not exceed 5,000 shares (the &#147;<b>Offering Share Limit</b>&#148;).&nbsp;
Shares of Stock may only be purchased through a Participant&#146;s payroll
deductions pursuant to Section&nbsp;10.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Pro Rata Adjustment of Purchase Right.</i></b>&nbsp; Notwithstanding the foregoing, if the Board
shall establish an Offering Period of less than twenty-three and one-half (23&#189;)
months in duration or more than twenty-four and one-half (24&#189;) months in
duration, (a)&nbsp;the dollar amount in Section&nbsp;8.1 shall be determined by
multiplying $2,083.33 by the number of months in the Offering Period and
rounding to the nearest whole dollar, and (b)&nbsp;the Offering Share Limit
shall be determined by multiplying 208.33 shares by the number of months in the
Offering Period and rounding to the nearest whole share.&nbsp; For purposes of the preceding sentence,
fractional months shall be rounded to the nearest whole month.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><u>Purchase
Price</u></b>.&nbsp; The Purchase
Price at which each share of Stock may be acquired in a given Offering Period
pursuant to the exercise of all or any portion of a Purchase Right granted
under the Plan shall be set by the Board; provided, however, that the Purchase
Price shall not be less than eighty-five percent (85%) of the lesser of
(a)&nbsp;the Fair Market Value of a share of Stock on the Offering Date of the
Offering Period, or (b)&nbsp;the Fair Market Value of a share of Stock on the
Purchase Date of the Offering Period.&nbsp;
Unless otherwise provided by the Board prior to the commencement of an
Offering Period, the Purchase Price for that Offering Period shall be eighty-five
percent (85%) of the lesser of (a)&nbsp;the Fair Market Value of a share of
Stock on the Offering Date of the Offering Period, or (b)&nbsp;the Fair Market
Value of a share of Stock on the Purchase Date of the Offering Period.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><u>Accumulation
of Purchase Price through Payroll Deduction</u></b>.&nbsp; Shares of Stock which are acquired pursuant
to the exercise of all or any portion of a Purchase Right for an Offering
Period may be paid for only by means of payroll deductions from the
Participant&#146;s Compensation accumulated during the Offering Period.&nbsp; Except as set forth below, the amount of
Compensation to be deducted from a Participant&#146;s Compensation during each pay
period shall be determined by the Participant&#146;s subscription agreement.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Commencement of Payroll Deductions.</i></b>&nbsp; Payroll deductions shall commence on the
first payday following the Offering Date and shall continue to the end of the
Offering Period unless sooner altered or terminated as provided in the Plan.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Limitations on Payroll Deductions.</i></b>&nbsp; The amount of payroll deductions with
respect to the Plan for any Participant during any pay period shall be in one
percent (1%) increments not to exceed ten percent (10%) of the Participant&#146;s
Compensation for such pay period.&nbsp;
Notwithstanding the foregoing, the Board may change the limits on
payroll deductions effective as of a future Offering Date, as determined by the
Board.&nbsp; Amounts deducted from
Compensation shall be reduced by any amounts contributed by the Participant and
applied to the purchase of Company stock pursuant to any other employee stock purchase
plan qualifying under Section&nbsp;423 of the Code.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Election to Change or Stop Payroll Deductions.</i></b>&nbsp; During an Offering Period, a Participant may
elect to increase or decrease the amount deducted or stop deductions from his
or her Compensation by filing an amended subscription agreement with the
Company on or before the &#147;Change Notice Date.&#148;&nbsp;
The &#147;<b>Change Notice Date</b>&#148;
shall initially be the seventh (7th) day prior to the end of the first pay
period for which such election is to be effective; however, the Company may
change such Change Notice Date from time to time.&nbsp; A Participant who elects to decrease the rate of his or her
payroll deductions to zero percent (0%) shall nevertheless remain a Participant
in the current Offering Period unless such Participant subsequently withdraws
from the Offering or the Plan as provided in Sections&nbsp;13.1 and 13.2,
respectively, or is automatically withdrawn from the Offering as provided in
Section&nbsp;13.4.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Participant Accounts.</i></b>&nbsp; Individual Plan accounts shall be maintained
for each Participant.&nbsp; All payroll
deductions from a Participant&#146;s Compensation shall be credited to such account
and shall be deposited with the general funds of the Company.&nbsp; All payroll deductions received or held by
the Company may be used by the Company for any corporate purpose.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>No Interest Paid.</i></b>&nbsp; Interest shall not be paid on sums deducted from a Participant&#146;s
Compensation pursuant to the Plan.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Company Established Procedures.</i></b>&nbsp; The Company may, from time to time,
establish or change (a)&nbsp;a minimum required payroll deduction amount for
participation in an Offering, (a)&nbsp;limitations on the frequency or number
of changes in the rate of payroll deduction during an Offering, (c)&nbsp;an
exchange ratio applicable to amounts withheld in a currency other than U.S.
dollars, (d)&nbsp;payroll deduction in excess of or less than the amount
designated by a Participant in order to adjust for delays or mistakes in the
Company&#146;s processing of subscription agreements, (e)&nbsp;the date(s) and
manner by which the Fair Market Value of a share of Stock is determined for
purposes of administration of the Plan, or (vi)&nbsp;such other limitations or
procedures as deemed advisable by the Company in the Company&#146;s sole discretion
which are consistent with the Plan and in accordance with the requirements of
Section&nbsp;423 of the Code.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><u>Purchase
of Shares</u></b>.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Exercise of Purchase Right.</i></b>&nbsp; On each Purchase Date of an Offering Period,
each Participant who has not withdrawn from the Offering or whose participation
in the Offering has not terminated on or before such Purchase Date shall
automatically acquire pursuant to the exercise of the Participant&#146;s Purchase
Right the number of whole shares of Stock arrived at by dividing the total
amount of the Participant&#146;s accumulated payroll deductions for the Purchase
Period by the Purchase Price; provided, however, in no event shall the number
of shares purchased by the Participant during an Offering Period exceed the
number of shares subject to the Participant&#146;s Purchase Right.&nbsp; No shares of Stock shall be purchased on a
Purchase Date on behalf of a Participant whose participation in the Offering or
the Plan has terminated on or before such Purchase Date.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Return of Cash Balance.</i></b>&nbsp; Any cash balance remaining in the
Participant&#146;s Plan account shall be refunded to the Participant as soon as
practicable after the Purchase Date.&nbsp; In
the event the cash to be returned to a Participant pursuant to the preceding
sentence is an amount less than the amount necessary to purchase a whole share
of Stock, the Company may establish procedures whereby such cash is maintained
in the Participant&#146;s Plan account and applied toward the purchase of shares of
Stock in the subsequent Purchase Period or Offering Period.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Tax Withholding.</i></b>&nbsp; At the time a Participant&#146;s Purchase Right is exercised, in whole
or in part, or at the time a Participant disposes of some or all of the shares
of Stock he or she acquires under the Plan, the Participant shall make adequate
provision for the foreign, federal, state and local tax withholding obligations
of the Participating Company Group, if any, which arise upon exercise of the
Purchase Right or upon such disposition of shares, respectively.&nbsp; The Participating Company Group may, but
shall not be obligated to, withhold from the Participant&#146;s compensation the
amount necessary to meet such withholding obligations.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Expiration of Purchase Right.</i></b>&nbsp; Any portion of a Participant&#146;s Purchase
Right remaining unexercised after the end of the Offering Period to which such
Purchase Right relates shall expire immediately upon the end of such Offering
Period.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><u>Limitations
on Purchase of Shares; Rights as a Stockholder</u></b>.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Fair Market Value Limitation.</i></b>&nbsp; Notwithstanding any other provision of the
Plan, no Participant shall be entitled to purchase shares of Stock under the
Plan (or any other employee stock purchase plan which is intended to meet the
requirements of Section&nbsp;423 of the Code sponsored by the Company or a
Parent Corporation or Subsidiary Corporation) at a rate which exceeds $25,000
in Fair Market Value, which Fair Market Value is determined for shares
purchased during a given Offering Period as of the Offering Date for such
Offering Period (or such other limit as may be imposed by the Code), for each
calendar year in which the Participant participates in the Plan (or any other
employee stock purchase plan described in this sentence).</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Pro Rata Allocation. </i></b>&nbsp;In the event the number of shares of Stock
which might be purchased by all Participants in the Plan exceeds the number of
shares of Stock available in the Plan, the Company shall make a pro rata
allocation of the remaining shares in as uniform a manner as shall be
practicable and as the Company shall determine to be equitable.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Rights as a Stockholder and Employee.</i></b>&nbsp; A Participant shall have no rights as a
stockholder by virtue of the Participant&#146;s participation in the Plan until the
date of the issuance of a stock certificate for the shares of Stock being
purchased pursuant to the exercise of the Participant&#146;s Purchase Right.&nbsp; No adjustment shall be made for cash
dividends or distributions or other rights for which the record date is prior
to the date such stock certificate is issued.&nbsp;
Nothing herein shall confer upon a Participant any right to continue in
the employ of the Participating Company Group or interfere in any way with any
right of the Participating Company Group to terminate the Participant&#146;s
employment at any time.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><u>Withdrawal</u></b>.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Withdrawal From an Offering.</i></b>&nbsp; A Participant may withdraw from an Offering
by signing and delivering to the Company&#146;s payroll or other designated office a
written notice of withdrawal on a form provided by the Company for such
purpose.&nbsp; Such withdrawal may be elected
at any time prior to the end of an Offering Period; provided, however, if a
Participant withdraws after a Purchase Date, the withdrawal shall not affect
shares of Stock acquired by the Participant on such Purchase Date.&nbsp; Unless otherwise indicated, withdrawal from
an Offering shall not result in a withdrawal from the Plan or any succeeding
Offering therein.&nbsp; By withdrawing from
an Offering effective as of the close of a given Purchase Date, a Participant
may have shares of Stock purchased on such Purchase Date and immediately
commence participation in the new Offering commencing immediately after such
Purchase Date.&nbsp; A Participant is
prohibited from again participating in an Offering at any time following
withdrawal from such Offering.&nbsp; The
Company may impose, from time to time, a requirement that the notice of
withdrawal be on file with the Company&#146;s payroll office or other designated
office for a reasonable period prior to the effectiveness of the Participant&#146;s
withdrawal from an Offering.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Withdrawal from the Plan.</i></b>&nbsp; A Participant may withdraw from the Plan by
signing and delivering to the Company&#146;s payroll office or other designated
office a written notice of withdrawal on a form provided by the Company for
such purpose.&nbsp; Withdrawals made after a
Purchase Date shall not affect shares of Stock acquired by the Participant on
such Purchase Date.&nbsp; In the event a
Participant voluntarily elects to withdraw from the Plan, the Participant may
not resume participation in the Plan during the same Offering Period, but may
participate in any subsequent Offering under the Plan by again satisfying the
requirements of Sections&nbsp;5 and 7.1.&nbsp;
The Company may impose, from time to time, a requirement that the notice
of withdrawal be on file with the Company&#146;s payroll office or other designated
office for a reasonable period prior to the effectiveness of the Participant&#146;s
withdrawal from the Plan.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Return of Payroll Deductions.</i></b>&nbsp; Upon a Participant&#146;s withdrawal from an
Offering or the Plan pursuant to Sections&nbsp;13.1 or 13.2, respectively, the
Participant&#146;s accumulated payroll deductions which have not been applied toward
the purchase of shares of Stock shall be returned as soon as practicable after
the withdrawal, without the payment of any interest, to the Participant, and
the Participant&#146;s interest in the Offering or the Plan, as applicable, shall
terminate.&nbsp; Such accumulated payroll
deductions may not be applied to any other Offering under the Plan.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Automatic Withdrawal From an Offering. </i></b>&nbsp;If the Fair Market Value of a share of Stock
on a Purchase Date of an Offering (other than the final Purchase Date of such
Offering) is less than the Fair Market Value of a share of Stock on the
Offering Date for such Offering, then every Participant shall automatically
(a)&nbsp;be withdrawn from such Offering at the close of such Purchase Date and
after the acquisition of shares of Stock for such Purchase Period and
(b)&nbsp;be enrolled in the Offering commencing on the first business day
subsequent to such Purchase Period.&nbsp; A
Participant may elect not to be automatically withdrawn from an Offering Period
pursuant to this Section&nbsp;13.4 by delivering to the Company not later than
the close of business on the last day before the Purchase Date a written notice
indicating such election.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Waiver of Withdrawal Right.</i></b>&nbsp; The Company may, from time to time,
establish a procedure pursuant to which a Participant may elect, at least six
(6) months prior to a Purchase Date, to have all payroll deductions accumulated
in his or her Plan account as of such Purchase Date applied to purchase shares
of Stock under the Plan, and (a)&nbsp;to waive his or her right to withdraw
from the Offering or the Plan and (b)&nbsp;to waive his or her right to
increase, decrease, or cease payroll deductions under the Plan from his or her
Compensation during the Purchase Period ending on such Purchase Date.&nbsp; Such election shall be made in writing on a
form provided by the Company for such purpose and must be delivered to the
Company not later than the close of business on the day preceding the date
which is six (6) months before the Purchase Date for which such election is to
first be effective.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><u>Termination
of Employment or Eligibility</u>.</b>&nbsp;
Termination of a Participant&#146;s employment with the Company for any
reason, including retirement, disability or death or the failure of a Participant
to remain an Eligible Employee, shall terminate the Participant&#146;s participation
in the Plan immediately.&nbsp; In such event,
the payroll deductions credited to the Participant&#146;s Plan account since the
last Purchase Date shall, as soon as practicable, be returned to the
Participant or, in the case of the Participant&#146;s death, to the Participant&#146;s
legal representative, and all of the Participant&#146;s rights under the Plan shall
terminate.&nbsp; Interest shall not be paid on
sums returned to a Participant pursuant to this Section&nbsp;14.&nbsp; A Participant whose participation has been
so terminated may again become eligible to participate in the Plan by again
satisfying the requirements of Sections&nbsp;5 and 7.1.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Transfer
of Control</u></b>.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Definitions.</i></b></font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; An &#147;<b>Ownership
Change Event</b>&#148; shall be deemed to have occurred if any of the
following occurs with respect to the Company:&nbsp;
(i)&nbsp;the direct or indirect sale or exchange in a single or series
of related transactions by the stockholders of the Company of more than fifty percent
(50%) of the voting stock of the Company; (ii)&nbsp;a merger or consolidation
in which the Company a party; (iii)&nbsp;the sale, exchange, or transfer of all
or substantially all of the assets of the Company; or (iv)&nbsp;a liquidation
or dissolution of the Company.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A &#147;<b>Transfer
of Control</b>&#148; shall mean an Ownership Change Event or a series of
related Ownership Change Events (collectively, the &#147;<b>Transaction</b>&#148;) wherein the stockholders of the Company
immediately before the Transaction do not retain immediately after the
Transaction, in substantially the same proportions as their ownership of shares
of the Company&#146;s voting stock immediately before the Transaction, direct or
indirect beneficial ownership of more than fifty percent (50%) of the total
combined voting power of the outstanding voting stock of the Company or the
corporation or corporations to which the assets of the Company were transferred
(the &#147;<b>Transferee Corporation(s)</b>&#148;),
as the case may be.&nbsp; For purposes of the
preceding sentence, indirect beneficial ownership shall include, without
limitation, an interest resulting from ownership of the voting stock of one or
more corporations which, as a result of the Transaction, own the Company or the
Transferee Corporation(s), as the case may be, either directly or through one
or more subsidiary corporations.&nbsp; The
Board shall have the right to determine whether multiple sales or exchanges of
the voting stock of the Company or multiple Ownership Change Events are
related, and its determination shall be final, binding and conclusive.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>Effect of Transfer of Control on Purchase Rights.</i></b>&nbsp; In the event of a Transfer of Control, the
surviving, continuing, successor, or purchasing corporation or parent
corporation thereof, as the case may be (the &#147;<b>Acquiring
Corporation</b>&#148;), may assume the Company&#146;s rights and obligations under
the Plan or substitute substantially equivalent Purchase Rights for stock of
the Acquiring Corporation.&nbsp; If the
Acquiring Corporation elects not to assume or substitute for the outstanding
Purchase Rights, the Board may, in its sole discretion and notwithstanding any
other provision herein to the contrary, adjust the Purchase Date of the then
current Purchase Period to a date on or before the date of the Transfer of
Control, but shall not adjust the number of shares of Stock subject to any
Purchase Right.&nbsp; All Purchase Rights
which are neither assumed or substituted for by the Acquiring Corporation in
connection with the Transfer of Control nor exercised as of the date of the
Transfer of Control shall terminate and cease to be outstanding effective as of
the date of the Transfer of Control.&nbsp;
Notwithstanding the foregoing, if the corporation the stock of which is
subject to the outstanding Purchase Rights immediately prior to an Ownership
Change Event described in Section 15.1(a)(i) constituting a Transfer of Control
is the surviving or continuing corporation and immediately after such Ownership
Change Event less than fifty percent (50%) of the total combined voting power
of its voting stock is held by another corporation or by other corporations
that are members of an affiliated group within the meaning of Section 1504(a)
of the Code without regard to the provisions of Section 1504(b) of the Code,
the outstanding Purchase Rights shall not terminate unless the Board otherwise
provides in its sole discretion.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><u>Nontransferability
of Purchase Rights</u></b>.&nbsp; A
Purchase Right may not be transferred in any manner otherwise than by will or
the laws of descent and distribution and shall be exercisable during the lifetime
of the Participant only by the Participant.&nbsp;
The Company, in its absolute discretion, may impose such restrictions on
the transferability of the shares purchasable upon the exercise of a Purchase
Right as it deems appropriate and any such restriction shall be set forth in
the respective subscription agreement and may be referred to on the
certificates evidencing such shares.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><u>Reports</u></b>.&nbsp; Each Participant who exercised all or part
of his or her Purchase Right for a Purchase Period shall receive, as soon as
practicable after the Purchase Date of such Purchase Period, a report of such
Participant&#146;s Plan account setting forth the total payroll deductions
accumulated, the number of shares of Stock purchased, the Purchase Price for
such shares, the date of purchase and the remaining cash balance to be refunded
or retained in the Participant&#146;s Plan account pursuant to Section&nbsp;11.2, if
any.&nbsp; Each Participant shall be provided
information concerning the Company equivalent to that information generally
made available to the Company&#146;s common stockholders.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><u>Restriction
on Issuance of Shares</u></b>.&nbsp;
The issuance of shares under the Plan shall be subject to compliance
with all applicable requirements of foreign, federal or state law with respect
to such securities.&nbsp; A Purchase Right
may not be exercised if the issuance of shares upon such exercise would
constitute a violation of any applicable foreign, federal or state securities
laws or other law or regulations.&nbsp; In
addition, no Purchase Right may be exercised unless (a)&nbsp;a registration
statement under the Securities Act of 1933, as amended, shall at the time of
exercise of the Purchase Right be in effect with respect to the shares issuable
upon exercise of the Purchase Right, or (b)&nbsp;in the opinion of legal counsel
to the Company, the shares issuable upon exercise of the Purchase Right may be
issued in accordance with the terms of an applicable exemption from the
registration requirements of said Act.&nbsp;
The inability of the Company to obtain from any regulatory body having
jurisdiction the authority, if any, deemed by the Company&#146;s legal counsel to be
necessary to the lawful issuance and sale of any shares under the Plan shall
relieve the Company of any liability in respect of the failure to issue or sell
such shares as to which such requisite authority shall not have been
obtained.&nbsp; As a condition to the
exercise of a Purchase Right, the Company may require the Participant to
satisfy any qualifications that may be necessary or appropriate, to evidence
compliance with any applicable law or regulation, and to make any
representation or warranty with respect thereto as may be requested by the
Company.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><u>Legends</u></b>.&nbsp; The Company may at any time place legends or
other identifying symbols referencing any applicable foreign, federal or state
securities law restrictions or any provision convenient in the administration
of the Plan on some or all of the certificates representing shares of Stock
issued under the Plan.&nbsp; The Participant
shall, at the request of the Company, promptly present to the Company any and
all certificates representing shares acquired pursuant to a Purchase Right in
the possession of the Participant in order to carry out the provisions of this
Section.&nbsp; Unless otherwise specified by
the Company, legends placed on such certificates may include but shall not be
limited to the following:</font></p>

<dir>
<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#147;THE SHARES EVIDENCED BY THIS
CERTIFICATE WERE ISSUED BY THE CORPORATION TO THE REGISTERED HOLDER UPON THE
PURCHASE OF SHARES UNDER AN EMPLOYEE STOCK PURCHASE PLAN AS DEFINED IN SECTION&nbsp;423
OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED.&nbsp; THE TRANSFER AGENT FOR THE SHARES EVIDENCED HEREBY SHALL NOTIFY
THE CORPORATION IMMEDIATELY OF ANY TRANSFER OF THE SHARES BY THE REGISTERED
HOLDER HEREOF MADE ON OR BEFORE <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>,
19<u>&nbsp;&nbsp;</u>.&nbsp; THE REGISTERED
HOLDER SHALL HOLD ALL SHARES PURCHASED UNDER THE PLAN IN THE REGISTERED
HOLDER&#146;S NAME (AND NOT IN THE NAME OF ANY NOMINEE) PRIOR TO THIS DATE.&#148;</font></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><u>Notification
of Sale of Shares</u>.</b>&nbsp; The
Company may require the Participant to give the Company prompt notice of any
disposition of shares acquired by exercise of a Purchase Right within two years
from the date of granting such Purchase Right or one year from the date of
exercise of such Purchase Right.&nbsp; The
Company may require that until such time as a Participant disposes of shares
acquired upon exercise of a Purchase Right, the Participant shall hold all such
shares in the Participant&#146;s name (and not in the name of any nominee) until the
lapse of the time periods with respect to such Purchase Right referred to in
the preceding sentence.&nbsp; The Company may
direct that the certificates evidencing shares acquired by exercise of a
Purchase Right refer to such requirement to give prompt notice of disposition.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><u>Amendment
or Termination of the Plan</u></b>.&nbsp;
The Board may at any time amend or terminate the Plan, except that
(a)&nbsp;such termination shall not affect Purchase Rights previously granted
under the Plan, except as permitted under the Plan, and (b)&nbsp;no amendment
may adversely affect a Purchase Right previously granted under the Plan (except
to the extent permitted by the Plan or as may be necessary to qualify the Plan
as an employee stock purchase plan pursuant to Section&nbsp;423 of the Code or
to obtain qualification or registration of the shares of Stock under applicable
foreign, federal or state securities laws).&nbsp;
In addition, an amendment to the Plan must be approved by the
stockholders of the Company within twelve (12) months of the adoption of such
amendment if such amendment would authorize the sale of more shares than are <br>
<br>
authorized for issuance under the Plan or would change the definition of the
corporations that may be designated by the Board as Participating Companies.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 22.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><u>Continuation
of Initial Plan as to Outstanding Purchase Rights</u></b>.&nbsp; Any other provision of the Plan to the
contrary notwithstanding, the terms of the Initial Plan shall remain in effect
and apply to all Purchase Rights granted pursuant to the Initial Plan.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IN WITNESS WHEREOF, the undersigned Secretary of the
Company certifies that the foregoing sets forth the Zoran Corporation Amended
and Restated 1995 Employee Stock Purchase Plan as duly adopted by the Board of
Directors of the Company on January&nbsp;24, 1996 and amended through April 17,
2001.</font></p>

<p><font size=2>&nbsp;</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Secretary</font></p>

<page>


<p align=center><font size=2>PLAN
HISTORY</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td width="17%" valign=top bgcolor="#cceeff"><font size=2>October 13, 1995</font></td>
  <td width="82%" valign=top bgcolor="#cceeff"><font size=2>Board adopts Initial Plan, with an initial
  reserve of 150,000 shares (post the 1:3 reverse stock split on 12/14/95).</font></td>
 </tr>
 <tr>
  <td width="17%" valign=top><font size=2>December 14, 1995</font></td>
  <td width="82%" valign=top><font size=2>Effective date of stockholder action by
  consent without meeting, approving Initial Plan, with an initial reserve of
  150,000 shares (post the 1:3 reverse stock split on 12/14/95).</font></td>
 </tr>
 <tr>
  <td width="17%" valign=top bgcolor="#cceeff"><font size=2>December 14, 1995</font></td>
  <td width="82%" valign=top bgcolor="#cceeff"><font size=2>The Plan initially was effective December 14,
  1995, the effective date of the initial registration by the Company of its
  Stock under Section&nbsp;12 of the Exchange Act.</font></td>
 </tr>
 <tr>
  <td width="17%" valign=top><font size=2>January 24, 1996</font></td>
  <td width="82%" valign=top><font size=2>Subject to stockholder approval, Board amends
  and restates the Plan to increase the number of shares subject to a purchase
  right and to eliminate a limit on the number of shares purchasable in a
  calendar year less than the calendar year limit imposed by Section&nbsp;423
  of the Code.&nbsp; The amended and restated
  Plan will be effective as of the date of commencement of the first offering
  under the Plan following approval by the stockholders.</font></td>
 </tr>
 <tr>
  <td width="17%" valign=top bgcolor="#cceeff"><font size=2>May 23, 1996</font></td>
  <td width="82%" valign=top bgcolor="#cceeff"><font size=2>Stockholders approve Plan, as amended January&nbsp;24,
  1996.</font></td>
 </tr>
 <tr>
  <td width="17%" valign=top><font size=2>April 23, 1997</font></td>
  <td width="82%" valign=top><font size=2>Board amends Plan to increase share reserve by
  150,000 shares to 300,000 shares and to permit increases in the rate of
  payroll deductions.</font></td>
 </tr>
 <tr>
  <td width="17%" valign=top bgcolor="#cceeff"><font size=2>June 6, 1997</font></td>
  <td width="82%" valign=top bgcolor="#cceeff"><font size=2>Stockholders approve amendment increasing
  share reserve to 300,000 shares.</font></td>
 </tr>
 <tr>
  <td width="17%" valign=top><font size=2>__________, 1999</font></td>
  <td width="82%" valign=top><font size=2>Board amends Plan to increase share reserve by
  100,000 shares to 400,000 shares.</font></td>
 </tr>
 <tr>
  <td width="17%" valign=top bgcolor="#cceeff"><font size=2>July 16, 1999</font></td>
  <td width="82%" valign=top bgcolor="#cceeff"><font size=2>Stockholders approve amendment increasing
  share reserve to 400,000 shares.</font></td>
 </tr>
 <tr>
  <td width="17%" valign=top><font size=2>June 18, 2000</font></td>
  <td width="82%" valign=top><font size=2>Board amends Plan to increase share reserve by
  100,000 shares to 500,000 shares.</font></td>
 </tr>
 <tr>
  <td width="17%" valign=top bgcolor="#cceeff"><font size=2>July ___, 2000</font></td>
  <td width="82%" valign=top bgcolor="#cceeff"><font size=2>Stockholders approve amendment increasing
  share reserve to 500,000 shares.</font></td>
 </tr>
 <tr>
  <td width="17%" valign=top><font size=2>April 17, 2001</font></td>
  <td width="82%" valign=top><font size=2>Board amends Plan to increase share reserve by
  50,000 shares to 550,000 shares.</font></td>
 </tr>
 <tr>
  <td width="17%" valign=top bgcolor="#cceeff"><font size=2>June 29, 2001</font></td>
  <td width="82%" valign=top bgcolor="#cceeff"><font size=2>Stockholders approve amendment increasing
  share reserve to 550,000 shares.</font></td>
 </tr>
</table>

</div>

<page>


<div>

<p align=center><b><font size=2>ZORAN
CORPORATION<br>
1995 EMPLOYEE STOCK PURCHASE PLAN</font></b></p>

<p align=center><b><font size=2>SUBSCRIPTION
AGREEMENT</font></b></p>

<p><font size=2 face=Wingdings>o</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Original Application for participation
commencing with the Offering Period beginning _________________________, 200__.</font></p>

<p><font size=2 face=Wingdings>o</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in Percentage of Payroll
Deductions effective with the pay period ending _________________________,
200__.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I hereby elect to participate in
the 1995 Employee Stock Purchase Plan (the &#147;<b>Plan</b>&#148;) of Zoran Corporation
(the &#147;<b>Company</b>&#148;)
and subscribe to purchase shares of the Company&#146;s common stock as determined in
accordance with the terms of the Plan.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I hereby authorize payroll
deductions in the amount of <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</u> percent (in 1%
increments not to exceed 10%) of my &#147;<b>Compensation</b>&#148; (as defined in the Plan) from
each paycheck throughout the &#147;<b>Offering Period</b>&#148; (as defined in the Plan)
in accordance with the terms of the Plan.&nbsp;
I understand that these payroll deductions will be accumulated for the
purchase of shares of common stock of the Company at the applicable purchase
price determined in accordance with the Plan.&nbsp;
I further understand that, except as otherwise set forth in the Plan,
shares will be purchased for me automatically on the last day of each Purchase
Period unless I withdraw from the Plan or from the Offering by giving written
notice to the Company or unless I terminate employment.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I further understand that I will
automatically participate in each subsequent Offering which commences
immediately after the last day of an Offering in which I am participating under
the Plan until such time as I file with the Company a notice of withdrawal from
the Plan on such form as may be established from time to time by the Company or
I terminate employment.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shares purchased for me under the
Plan should be issued in the name set forth below.&nbsp; (I understand that shares may be issued either in my name alone
or together with my spouse as community property or in joint tenancy.)</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td width="100%" valign=top><font size=2>NAME:</font></td>
 </tr>
 <tr>
  <td width="100%" valign=top>
<hr size=1 width="93%" noshade color=black align=right></td>
 </tr>
 <tr>
  <td width="100%" valign=top><font size=2>ADDRESS:</font></td>
 </tr>
 <tr>
  <td width="100%" valign=top>
<hr size=1 width="90%" noshade color=black align=right></td>
 </tr>
 <tr>
  <td width="100%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="100%" valign=top>
<hr size=1 width="100%" noshade color=black align=right></td>
 </tr>
 <tr>
  <td width="100%" valign=top><font size=2>MY SOCIAL SECURITY NUMBER:</font></td>
 </tr>
 <tr>
  <td width="100%" valign=top>
<hr size=1 width="71%" noshade color=black align=right></td>
 </tr>
</table>

<p><font size=2>&nbsp;</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I hereby authorize withholding from
my compensation in order to satisfy the foreign, federal, state and local tax
withholding obligations, if any, which may arise upon my purchase of shares
under the Plan and/or upon my disposition of shares I acquired under the Plan.&nbsp; I hereby agree that until I dispose of the
shares, unless otherwise permitted by the Company, I will hold all shares I
acquire under the Plan in the name entered above (and not in the name of any
nominee) for at least two (2) years from the first day of the Offering Period
in which, and at least one (1) year from the Purchase Date on which, I acquired
such shares.&nbsp; I further agree that I
will promptly notify the Chief Financial Officer of the Company in writing of
any transfer of such shares prior to the end of the periods referred to in the
preceding sentence.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I am familiar with the provisions
of the Plan and hereby agree to participate in the Plan subject to all of the
provisions thereof.&nbsp; I understand that
the Board of Directors of the Company reserves the right to amend the Plan and
my right to purchase stock under the Plan as may be necessary to qualify the
Plan as an employee stock purchase plan as defined in Section&nbsp;423 of the
Internal Revenue Code of 1986, as amended, or to obtain qualification or
registration of the Company&#146;s common stock to be issued out of the Plan under
applicable foreign, federal and state securities laws.&nbsp; I understand that the effectiveness of this
subscription agreement is dependent upon my eligibility to participate in the
Plan.</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td width="37%" valign=top><font size=2>Date:&nbsp;________________________</font></td>
  <td width="62%" valign=top><font size=2>Signature:
  ______________________________________________</font></td>
 </tr>
 <tr>
  <td width="37%" valign=top>&nbsp;</td>
  <td width="62%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="37%" valign=top>&nbsp;</td>
  <td width="62%" valign=top><font size=2>Name&nbsp;Printed
  ___________________________________________</font></td>
 </tr>
</table>

</div>

<page>


<div>

<p align=center><b><font size=2>ZORAN
CORPORATION<br>
1995 EMPLOYEE STOCK PURCHASE PLAN<br>
NOTICE OF WITHDRAWAL</font></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I hereby elect to withdraw from the
offering of the common stock of Zoran Corporation (the &#147;<b>Company</b>&#148;) under the Company&#146;s
1995 Employee Stock Purchase Plan (the &#147;<b>Plan</b>&#148;) which began on
_________________________, 200__ and in which I am currently participating (the
&#147;<b>Current
Offering</b>&#148;).</font></p>

<p><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Make one election under section&nbsp;A and one election
under section&nbsp;B:</font></b></p>

<p><font size=2>A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Current Offering</u>.&nbsp; As to my participation in the current
purchase period (the &#147;Current Purchase Period&#148;) of the Current Offering under
the Plan, I elect as follows (check one):</font></p>

<p><font size=2 face=Wingdings>o</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I
elect to terminate my participation in the Current Purchase Period immediately.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I hereby request that all payroll
deductions credited to my account under the Plan (if any) not previously used
to purchase shares under the Plan shall <u>not</u> be used to purchase shares
on the last day of the Current Purchase Period.&nbsp; Instead, I request that all such amounts be paid to me as soon as
practicable.&nbsp; I understand that this
election immediately terminates my interest in the Current Offering.</font></p>

<p><font size=2 face=Wingdings>o</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I
elect to terminate my participation in the Current Offering following my
purchase of shares on the last day of the Current Purchase Period.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I hereby request that all payroll
deductions credited to my account under the Plan (if any) not previously used
to purchase shares under the Plan shall be used to purchase shares on the last
day of the Current Purchase Period.&nbsp; I
understand that this election will terminate my interest in the Current
Offering immediately following such purchase.&nbsp;
I request that any cash balance remaining in my account under the Plan
after my purchase of shares be returned to me as soon as practicable.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I understand that if no election is
made as to participation in the Current Offering under the Plan, I will be
deemed to have elected to participate in the Current Offering.</font></p>

<p><font size=2>B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Future Offerings</u>.&nbsp; As to my participation in future offerings
of common stock under the Plan, I elect as follows (check one):</font></p>

<p><font size=2 face=Wingdings>o</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I
elect to participate in future offerings under the Plan.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I understand that by making this
election I will participate in the next offering under the Plan commencing
subsequent to the Current Offering, and in each subsequent offering commencing
immediately after the last day of an offering in which I participate, until
such time as I elect to withdraw from the Plan or from any such subsequent
offering.</font></p>

<p><font size=2 face=Wingdings>o</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I
elect <u>not</u> to participate in future offerings under the Plan.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I understand that by making this
election I terminate my interest in the Plan and that no further payroll
deductions will be made unless I elect in accordance with the Plan to become a
participant in another offering under the Plan.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I understand that if no election is
made as to participation in future offerings under the Plan, I will be deemed
to have elected to participate in such future offerings.</font></p>

<p><font size=2>Date:&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u>&nbsp;&nbsp; Signature: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; Name Printed: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></font></p>

<p><font size=2>&nbsp;</font></p>

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