EX-10.3



 Exhibit 10.3 
 TANDEM DIABETES CARE, INC. 
 2006 STOCK INCENTIVE PLAN 

This 2006 STOCK INCENTIVE PLAN (the “Plan”) is hereby established by Tandem Diabetes Care, Inc., a Delaware corporation (the
“Company”), and adopted by its predecessor’s Board of Directors as of September 22, 2006 (the “Effective Date”). The Plan has been amended September 24, 2007, June 5, 2008 and May 14, 2009.

 ARTICLE 1. 
 PURPOSES OF THE PLAN 
 1.1 Purposes. The purposes of the Plan are
(a) to enhance the Company’s ability to attract and retain the services of qualified employees, officers and directors (including non-employee officers and directors), and consultants and other service providers upon whose judgment,
initiative and efforts the successful conduct and development of the Company’s business largely depends, and (b) to provide additional incentives to such persons or entities to devote their utmost effort and skill to the advancement and
betterment of the Company, by providing them an opportunity to participate in the ownership of the Company and thereby have an interest in the success and increased value of the Company. 

ARTICLE 2. 

DEFINITIONS 
 For purposes of this Plan, the following terms shall have the meanings indicated: 

2.1 Administrator. “Administrator” means the Board or, if the Board delegates responsibility for any matter to the
Committee, the term Administrator shall mean the Committee. 
 2.2 Affiliated Company. “Affiliated Company”
means any “parent corporation” or “subsidiary corporation” of the Company, whether now existing or hereafter created or acquired, as those terms are defined in Sections 424(e) and 424(f) of the Code, respectively. 

2.3 Award “Award” means any unexercised Option or Stock Purchase Agreement granted by the Plan Administrator from time
to time. 
 2.4 Board. “Board” means the Board of Directors of the Company. 

2.5 Change in Control. “Change in Control” shall mean: 

(a) The acquisition, directly or indirectly, in one transaction or a series of related transactions, by any person or group
(within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended) of the beneficial ownership of securities of the Company possessing more than fifty percent (50%) of the total combined voting power of all
outstanding securities of the Company, provided, however, that a Change in Control shall not result upon such acquisition of beneficial ownership if such acquisition occurs as a result of a public offering of the Company’s securities or any
financing transaction or series of financing transactions. 







 (b) The consummation of a merger or consolidation in which the Company is not the
surviving entity, except for a transaction in which the holders of the outstanding voting securities of the Company immediately prior to such merger or consolidation hold as a result of holding Company securities prior to such transaction, in the
aggregate, securities possessing more than fifty percent (50%) of the total combined voting power of all outstanding voting securities of the surviving entity immediately after such merger or consolidation; 

(c) A reverse merger in which the Company is the surviving entity, except for a transaction in which securities possessing fifty
percent (50%) or less of the total combined voting power of all outstanding voting securities of the Company are transferred to or acquired by the acquiring entity; 
 (d) The sale, transfer or other disposition (in one transaction or a series of related transactions) of all or substantially all of the assets of the Company; 

(e) The approval by the stockholders of a plan or proposal for the liquidation or dissolution of the Company; or 

(f) Any other event determined by the Board to constitute a Change in Control for purposes of the Plan. 

2.6 Code. “Code” means the Internal Revenue Code of 1986, as amended from time to time. 

2.7 Committee. “Committee” means a committee of two or more members of the Board appointed to administer the Plan, as
set forth in Section 7.1 hereof. 
 2.8 Common Stock. “Common Stock” means the Common Stock of the
Company, including Common Stock that is convertible into preferred stock of the Company, subject to adjustment pursuant to Section 4.2 hereof. 
 2.9 Consultant. “Consultant” means any consultant or advisor if: (i) the consultant or advisor renders bona fide services to the Company or any Affiliated Company; (ii) the
services rendered by the consultant or advisor are not in connection with the offer or sale of securities in a capital-raising transaction and do not directly or indirectly promote or maintain a market for the Company’s securities; and
(iii) the consultant or advisor is a natural person who has contracted directly with the Company or any Affiliated Company to render such services. 
 2.10 Covered Employee. “Covered Employee” means the chief executive officer of the Company (or the individual acting in such capacity) and the four (4) other individuals that are the
highest compensated officers of the Company for the relevant taxable year for whom total compensation is required to be reported to stockholders under the Exchange Act. Provisions in this Plan making reference to a Covered Employee shall apply only
at such time that the Company is Publicly Held. 
 2.11 Disability. “Disability” means permanent and total
disability as defined in Section 22(e)(3) of the Code. The Administrator’s determination of a Disability or the absence thereof shall be conclusive and binding on all interested parties. 

  
 2 








 2.12 Effective Date. “Effective Date” means the date on which the Plan is
adopted by the Board, as set forth on the first page hereof. 
 2.13 Exchange Act. “Exchange Act” means the
Securities and Exchange Act of 1934, as amended. 
 2.14 Exercise Price. “Exercise Price” means the purchase
price per share of Common Stock payable upon exercise of an Option. 
 2.15 Fair Market Value. “Fair Market
Value” on any given date means the value of one share of Common Stock, determined as follows: 
 (a) If the Common
Stock is then listed or admitted to trading on a Nasdaq market system or a stock exchange which reports closing sale prices, the Fair Market Value shall be the closing sale price on the date of valuation on such Nasdaq market system or principal
stock exchange on which the Common Stock is then listed or admitted to trading, or, if no closing sale price is quoted on such day, then the Fair Market Value shall be the closing sale price of the Common Stock on such Nasdaq market system or such
exchange on the next preceding day for which a closing sale price is reported. 
 (b) If the Common Stock is not then
listed or admitted to trading on a Nasdaq market system or a stock exchange which reports closing sale prices, the Fair Market Value shall be the average of the closing bid and asked prices of the Common Stock in the over-the-counter market on the
date of valuation. 
 (c) If neither (a) nor (b) is applicable as of the date of valuation, then the Fair
Market Value shall be determined by the Administrator in good faith using any reasonable method of evaluation, which determination shall be conclusive and binding on all interested parties. 

2.16 Incentive Option. “Incentive Option” means any Option designated and qualified as an “incentive stock
option” as defined in Section 422 of the Code. 
 2.17 Incentive Option Agreement. “Incentive Option
Agreement” means an Option Agreement with respect to an Incentive Option. 
 2.18 NASD Dealer. “NASD
Dealer” means a broker-dealer that is a member of the National Association of Securities Dealers, Inc. 
 2.19
Nonqualified Option. “Nonqualified Option” means any Option that is not an Incentive Option. To the extent that any Option designated as an Incentive Option fails in whole or in part to qualify as an Incentive Option, including,
without limitation, for failure to meet the limitations applicable to a 10% Stockholder or because it exceeds the annual limit provided for in Section 5.6 below, it shall to that extent constitute a Nonqualified Option. 

2.20 Nonqualified Option Agreement. “Nonqualified Option Agreement” means an Option Agreement with respect to a
Nonqualified Option. 
 2.21 Option. “Option” means any option to purchase Common Stock granted pursuant to the
Plan. 

  
 3 








 2.22 Option Agreement. “Option Agreement” means the written agreement
entered into between the Company and the Optionee with respect to an Option granted under the Plan. 
 2.23 Optionee.
“Optionee” means a Participant who holds an Option. 
 2.24 Participant. “Participant” means an
individual or entity who holds an Option or Restricted Stock under the Plan. 
 2.25 Publicly Held. “Publicly
Held” means, with respect to the Company, any point in time in which any class of common equity securities of the Company are required to be registered under Section 12 of the Exchange Act. 

2.26 Purchase Price. “Purchase Price” means the purchase price per share of Restricted Stock. 

2.27 Restricted Stock. “Restricted Stock” means shares of Common Stock issued pursuant to Article 6 hereof, subject to
any restrictions and conditions as are established pursuant to such Article 6. 
 2.28 Service Provider. “Service
Provider” means a Consultant or other natural person the Administrator authorizes to become a Participant in the Plan and who provides services to (i) the Company, (ii) an Affiliated Company, or (iii) any other business venture
designated by the Administrator in which the Company (or any entity that is a successor to the Company) or an Affiliated Company has a significant ownership interest. 
 2.29 Stock Purchase Agreement. “Stock Purchase Agreement” means the written agreement entered into between the Company and a Participant with respect to the purchase of Restricted Stock
under the Plan. 
 2.30 10% Stockholder. “10% Stockholder” means a person who, as of a relevant date, owns or
is deemed to own (by reason of the attribution rules applicable under Section 424(d) of the Code) stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or of an Affiliated Company. 

ARTICLE 3. 

ELIGIBILITY 
 3.1 Incentive Options. Only employees of the Company or of an Affiliated Company (including officers of the Company and members of the Board if they are employees of the Company or of an Affiliated
Company) are eligible to receive Incentive Options under the Plan. 
 3.2 Nonqualified Options and Restricted Stock.
Employees of the Company or of an Affiliated Company, officers of the Company and members of the Board (whether or not employed by the Company or an Affiliated Company), and Service Providers are eligible to receive Nonqualified Options or acquire
Restricted Stock under the Plan. 
 3.3 Section 162(m) Limitation. Subject to the provisions of Section 4.2, no
employee of the Company or of an Affiliated Company shall be eligible to be granted Options covering more than One Million Five Hundred Thousand (1,500,000) shares of Common Stock during any calendar year.


  
 4 








 
The foregoing shall not apply, however, until the first date upon which the Company is Publicly Held, and following the date that the Company is Publicly Held, this Section 3.3 shall not
apply until the earliest time as required by Section 162(m) of the Code and the rules and regulations thereunder. 

ARTICLE 4. 

PLAN SHARES 
 4.1 Shares Subject to the Plan.  
 (a) A total of Eight
Million Two Hundred Thousand (8,200,000) shares of Common Stock may be issued under the Plan, subject to adjustment as to the number and kind of shares pursuant to Section 4.2 hereof. For purposes of this limitation, in the event that
(a) all or any portion of any Option or Restricted Stock granted or offered under the Plan can no longer under any circumstances be exercised, or (b) any shares of Common Stock are reacquired by the Company which were initially the subject
of an Incentive Option Agreement, Nonqualified Option Agreement or Stock Purchase Agreement, the shares of Common Stock allocable to the unexercised portion of such Option or such Stock Purchase Agreement, or the shares so reacquired, shall again be
available for grant or issuance under the Plan. Notwithstanding the preceding sentence, at no time shall the aggregate number of shares of Common Stock issuable under the Plan and the total number of shares of Common Stock provided for under any
stock bonus or similar plan or agreement of the Company exceed the applicable percentage set forth in Rule 260.140.45 of Title 10 of the California Code of Regulations. 
 (b) A total of Eight Million Two Hundred Thousand (8,200,000) shares of Common Stock may be issued pursuant to Incentive Options, subject to adjustment as to the number and kind of shares
pursuant to Section 4.2 hereof. 
 4.2 Changes in Capital Structure. In the event that the outstanding shares of
Common Stock are hereafter increased or decreased or changed into or exchanged for a different number or kind of shares or other securities of the Company by reason of a recapitalization, stock split, reverse stock split, combination of shares,
reclassification, stock dividend, or other change in the capital structure of the Company, then appropriate adjustments shall be automatically made to the aggregate number and kind of shares subject to this Plan, the number and kind of shares and
the price per share subject to outstanding Option Agreements and Stock Purchase Agreements and the limit on the number of shares under Section 3.3, all in order to preserve, as nearly as practical, but not to increase, the benefits to
Participants. 
 4.3 Section 409A of the Code. Notwithstanding anything in this Plan to the contrary, (a) any
adjustments made pursuant to this Section 4 to Awards that are considered “deferred compensation” within the meaning of Section 409A of the Code shall be made in compliance with the requirements of Section 409A of the Code;
(b) any adjustments made pursuant to Section 4 to Awards that are not considered “deferred compensation” subject to Section 409A of the Code shall be made in such a manner as to ensure that after such adjustment the Awards
either (i) continue not to be subject to Section 409A of the Code or (ii) comply with the requirements of Section 409A of the Code; and (c) in any event, the Administrator shall not have the authority to make any adjustments
pursuant to Section 4 to the extent the existence of such authority would cause an Award that is not intended to be subject to Section 409A of the Code at the time of grant to be subject thereto. 

  
 5 








 ARTICLE 5. 
 OPTIONS 
 5.1 Option Agreement. Each Option granted pursuant to this
Plan shall be evidenced by an Option Agreement that shall specify the number of shares subject thereto, the Exercise Price per share, and whether the Option is an Incentive Option or Nonqualified Option. As soon as is practical following the grant
of an Option, an Option Agreement shall be duly executed and delivered by or on behalf of the Company to the Optionee to whom such Option was granted. Each Option Agreement shall be in such form and contain such additional terms and conditions, not
inconsistent with the provisions of this Plan, as the Administrator shall, from time to time, deem desirable, including, without limitation, the imposition of any rights of first refusal and resale obligations upon any shares of Common Stock
acquired pursuant to an Option Agreement. Each Option Agreement may be different from each other Option Agreement. 
 5.2
Exercise Price. The Exercise Price per share of Common Stock covered by each Option shall be determined by the Administrator, subject to the following: (a) the Exercise Price of an Incentive Option shall not be less than 100% of Fair Market
Value on the date the Incentive Option is granted, (b) the Exercise Price of a Nonqualified Option shall not be less than 100% of Fair Market Value on the date the Nonqualified Option is granted, and (c) if the person to whom an Option is
granted is a 10% Stockholder on the date of grant, the Exercise Price shall not be less than 110% of Fair Market Value on the date the Option is granted. However, an Option may be granted with an exercise price lower than that set forth in the
preceding sentence if such Option is granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions of Section 424 of the Code. 

5.3 Payment of Exercise Price. Payment of the Exercise Price shall be made upon exercise of an Option and may be made, in the
discretion of the Administrator, subject to any legal restrictions, by: (a) cash; (b) check; (c) the surrender of shares of Common Stock acquired pursuant to the exercise of an Option (provided that shares acquired pursuant to the
exercise of options granted by the Company must have been held by the Optionee for the requisite period necessary to avoid a charge to the Company’s earnings for financial reporting purposes), which surrendered shares shall be valued at Fair
Market Value as of the date of such exercise; (d) the Optionee’s promissory note in a form and on terms acceptable to the Administrator, provided that an amount equal to at least the aggregate par value of the shares purchased upon
exercise of an Option shall be paid in such other form of consideration permitted under the Colorado General Corporation Law; (e) the cancellation of indebtedness of the Company to the Optionee; (f) the waiver of compensation due or
accrued to the Optionee for services rendered; (g) provided that a public market for the Common Stock exists, a “same day sale” commitment from the Optionee and an NASD Dealer whereby the Optionee irrevocably elects to exercise the
Option and to sell a portion of the shares so purchased to pay for the Exercise Price and whereby the NASD Dealer irrevocably commits upon receipt of such shares to forward the Exercise Price directly to the Company; (h) provided that a public
market for the Common Stock exists, a “margin” commitment from the Optionee and an NASD Dealer whereby the Optionee irrevocably elects to exercise the Option and to pledge the shares so purchased to the NASD Dealer in a margin account as
security for a loan from the NASD Dealer in the amount of the Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt of such shares to forward the Exercise Price directly to the Company; or (i) any combination of the
foregoing methods of payment or any other consideration or method of payment as shall be permitted by applicable corporate law. 

  
 6 








 5.4 Term and Termination of Options. The term and provisions for termination of each
Option shall be as fixed by the Administrator, but no Option may be exercisable more than ten (10) years after the date it is granted. An Incentive Option granted to a person who is a 10% Stockholder on the date of grant shall not be
exercisable more than five (5) years after the date it is granted. 
 5.5 Vesting and Exercise of Options. Each
Option shall vest and become exercisable in one or more installments at such time or times and subject to such conditions, including without limitation the achievement of specified performance goals or objectives, as shall be determined by the
Administrator. An Option granted to an employee who is not an officer, a director or Consultant of the Company must vest at a rate of at least 20% per year over a period of five years from the date of grant, subject to reasonable conditions
such as continued employment. Notwithstanding the foregoing, to the extent required by applicable law, each Option shall provide that the Optionee shall have the right to exercise the vested portion of any Option held at termination for at least 30
days following termination for any reason other than Cause, and that the Optionee shall have the right to exercise the Option for at least six months if such termination was due to the death or Disability of the Optionee. For purposes of the
foregoing, the term “Cause” shall have the same meaning specified in the applicable Stock Option Agreement or the Restricted Share Purchase Agreement. 
 5.6 Annual Limit on Incentive Options. To the extent required for “incentive stock option” treatment under Section 422 of the Code, the aggregate Fair Market Value (determined as of
the time of grant) of the Common Stock shall not, with respect to which Incentive Options granted under this Plan and any other plan of the Company or any Affiliated Company become exercisable for the first time by an Optionee during any calendar
year, exceed $100,000. 
 5.7 Nontransferability of Options. Except as otherwise provided by the Administrator in an
Option Agreement and as permissible under applicable law, no Option shall be assignable or transferable except by will or the laws of descent and distribution, and during the life of the Optionee shall be exercisable only by such Optionee.

 5.8 Rights as Stockholder. An Optionee or permitted transferee of an Option shall have no rights or privileges as a
stockholder with respect to any shares covered by an Option until such Option has been duly exercised and certificates representing shares purchased upon such exercise have been issued to such person. 

5.9 Unvested Shares. The Administrator shall have the discretion to grant Options which are exercisable for unvested shares of
Common Stock. Should the Optionee cease being an employee, a Service Provider, an officer, director or Consultant of the Company while owning such unvested shares, the Company shall have the right to repurchase, at the exercise price paid per share,
any or all of those unvested shares. The terms upon which such repurchase right shall be exercisable (including the period and procedure for exercise and the appropriate vesting schedule for the purchased shares) shall be established by the
Administrator and set forth in the document evidencing such repurchase right. The Administrator may not impose a vesting schedule upon any Option grant or the shares of Common Stock subject to that Option which is more restrictive than twenty
percent (20%) per year vesting, with the initial vesting to occur not later than one (1) year after the Option grant date. However, such limitation shall not be applicable to any Option grants made to individuals who are officers,
directors or Consultants of the Company. 

  
 7 








 ARTICLE 6. 
 RESTRICTED STOCK 
 6.1 Issuance and Sale of Restricted Stock. The
Administrator shall have the right to issue shares of Common Stock subject to such terms, restrictions and conditions as the Administrator may determine at the time of grant (“Restricted Stock”). Such conditions may include, but are not
limited to, continued employment or the achievement of specified performance goals or objectives. The Purchase Price of Restricted Stock shall be determined by the Administrator, provided that (a) the Purchase Price shall not be less than 85%
of Fair Market Value of the stock on the date the Restricted Stock is granted or at the time the purchase is consummated, or (b) if the person to whom a right to purchase Restricted Stock is granted is a 10% Stockholder on the date of grant,
the Purchase Price shall not be less than 100% of Fair Market Value of the stock on the date the Restricted Stock is granted or at the time the purchase is consummated. 
 6.2 Restricted Stock Purchase Agreements. A Participant shall have no rights with respect to the shares of Restricted Stock covered by a Stock Purchase Agreement until the Participant has paid the
full Purchase Price to the Company in the manner set forth in Section 6.3 hereof and has executed and delivered to the Company the Stock Purchase Agreement. Each Stock Purchase Agreement shall be in such form, and shall set forth the Purchase
Price and such other terms, conditions and restrictions of the Restricted Stock, not inconsistent with the provisions of this Plan, as the Administrator shall, from time to time, deem desirable. Each Stock Purchase Agreement may be different from
each other Stock Purchase Agreement. 
 6.3 Payment of Purchase Price. Subject to any legal restrictions, payment of the
Purchase Price may be made, in the discretion of the Administrator, by: (a) cash; (b) check; (c) the surrender of shares of Common Stock owned by the Participant that have been held by the Participant for the requisite period
necessary to avoid a charge to the Company’s earnings for financial reporting purposes, which surrendered shares shall be valued at Fair Market Value as of the date of such acceptance; (d) the Participant’s promissory note in a form
and on terms acceptable to the Administrator, provided that an amount equal to at least the aggregate par value of the shares purchased pursuant to a Stock Purchase Agreement shall be paid in such other form of consideration permitted under the
Colorado General Corporation Law; (e) the cancellation of indebtedness of the Company to the Participant; (f) the waiver of compensation due or accrued to the Participant for services rendered; or (g) any combination of the foregoing
methods of payment or any other consideration or method of payment as shall be permitted by applicable corporate law. 
 6.4
Rights as a Stockholder. Upon complying with the provisions of Section 6.2 hereof, a Participant shall have the rights of a stockholder with respect to the Restricted Stock purchased pursuant to a Stock Purchase Agreement, including voting
and dividend rights, subject to the terms, restrictions and conditions as are set forth in such Stock Purchase Agreement. Unless the Administrator shall determine otherwise, certificates evidencing shares of Restricted Stock shall remain in the
possession of the Company until such shares have vested in accordance with the terms of the Stock Purchase Agreement. 
 6.5
Restrictions. Shares of Restricted Stock may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of except as specifically provided in the Stock Purchase Agreement. In the event of termination of a Participant’s
employment, service as a director of the Company or Service Provider status for any reason whatsoever (including death or disability), 

  
 8 








 
the Stock Purchase Agreement may provide, in the discretion of the Administrator, that the Company shall have the right, exercisable at the discretion of the Administrator, to repurchase
(i) at the original Purchase Price, any shares of Restricted Stock which have not vested as of the date of termination (provided that the right to repurchase at the original Purchase Price shall lapse at the rate of at least 20% per year
over five (5) years from the date of the Stock Purchase Agreement for Participants other than directors, officers and Consultants of the Company), and (ii) at Fair Market Value, any shares of Restricted Stock which have vested as of such
date, on such terms as may be provided in the Stock Purchase Agreement. 
 In any event, the right to repurchase must be
exercised within ninety (90) days of the termination of Participant’s Continuous Service and may be paid by the Company or its assignee, by cash, check, or cancellation of indebtedness within thirty (30) days of the expiration of the
right to exercise. 
 6.6 Vesting of Restricted Stock. Subject to Section 6.5 above, the Stock Purchase Agreement
shall specify the date or dates, the performance goals or objectives which must be achieved, and any other conditions on which the Restricted Stock may vest. 
 6.7 Dividends. If payment for shares of Restricted Stock is made by promissory note, any cash dividends paid with respect to the Restricted Stock may be applied, in the discretion of the
Administrator, to repayment of such note. 
 ARTICLE 7. 

ADMINISTRATION OF THE PLAN 
 7.1 Administrator. Authority to control and manage the operation and administration of the Plan shall be vested in the Board, which may delegate such responsibilities in whole or in part to a
committee consisting of two (2) or more members of the Board (the “Committee”). Members of the Committee may be appointed from time to time by, and shall serve at the pleasure of, the Board. The Board may limit the composition of the
Committee to those persons necessary to comply with the requirements of Section 162(m) of the Code and Section 16 of the Exchange Act. As used herein, the term “Administrator” means the Board or, with respect to any matter as to
which responsibility has been delegated to the Committee, the term Administrator shall mean the Committee. 
 7.2 Powers of
the Administrator. In addition to any other powers or authority conferred upon the Administrator elsewhere in the Plan or by law, the Administrator shall have full power and authority: (a) to determine the persons to whom, and the time or
times at which, Incentive Options or Nonqualified Options or rights to purchase Restricted Stock shall be granted, the number of shares to be represented by each Option and the number of shares of Restricted Stock to be offered, and the
consideration to be received by the Company upon the exercise of such Options or sale of such Restricted Stock; (b) to interpret the Plan; (c) to create, amend or rescind rules and regulations relating to the Plan; (d) to determine
the terms, conditions and restrictions contained in, and the form of, Option Agreements and Stock Purchase Agreements; (e) to determine the identity or capacity of any persons who may be entitled to exercise a Participant’s rights under
any Option or Stock Purchase Agreement under the Plan; (f) to correct any defect or supply any omission or reconcile any inconsistency in the Plan or in any Option Agreement or Stock Purchase Agreement; (g) to accelerate the vesting of any
Option or release or waive any repurchase rights of the Company 

  
 9 








 
with respect to Restricted Stock; (h) to extend the exercise date of any Option or acceptance date of any Restricted Stock; (i) to provide for rights of first refusal and/or repurchase
rights; (j) to amend outstanding Option Agreements and Stock Purchase Agreements to provide for, among other things, any change or modification which the Administrator could have included in the original Agreement or in furtherance of the
powers provided for herein; and (k) to make all other determinations necessary or advisable for the administration of the Plan, but only to the extent not contrary to the express provisions of the Plan. Any action, decision, interpretation or
determination made in good faith by the Administrator in the exercise of its authority conferred upon it under the Plan shall be final and binding on the Company and all Participants. 

7.3 Section 409A of the Code. Notwithstanding anything in this Plan to the contrary, (a) any adjustments made pursuant
to this Section 7 to Awards that are considered “deferred compensation” within the meaning of Section 409A of the Code shall be made in compliance with the requirements of Section 409A of the Code; (b) any adjustments
made pursuant to Section 7 to Awards that are not considered “deferred compensation” subject to Section 409A of the Code shall be made in such a manner as to ensure that after such adjustment the Awards either (i) continue
not to be subject to Section 409A of the Code or (ii) comply with the requirements of Section 409A of the Code; and (c) in any event, the Administrator shall not have the authority to make any adjustments pursuant to
Section 7 to the extent the existence of such authority would cause an Award that is not intended to be subject to Section 409A of the Code at the time of grant to be subject thereto. 

7.4 Limitation on Liability. No employee of the Company or member of the Board or Committee shall be subject to any liability with
respect to duties under the Plan unless the person acts fraudulently or in bad faith. To the extent permitted by law, the Company shall indemnify each member of the Board or Committee, and any employee of the Company with duties under the Plan, who
was or is a party, or is threatened to be made a party, to any threatened, pending or completed proceeding, whether civil, criminal, administrative or investigative, by reason of such person’s conduct in the performance of duties under the
Plan. 
 ARTICLE 8. 
 CHANGE IN CONTROL 
 8.1 Change in Control. In the sole discretion of
the Administrator, an Option may provide that in the event it is outstanding as of a Change in Control of the Company, vesting shall accelerate automatically effective as of immediately prior to the consummation of the Change in Control. If vesting
of outstanding Options will accelerate, the Administrator in its sole discretion may provide, in connection with the Change in Control transaction, for the purchase or exchange of each Option for an amount of cash or other property having a value
equal to the difference (or “spread”) between: (x) the value of the cash or other property that the Optionee would have received pursuant to the Change in Control transaction in exchange for the shares issuable upon exercise of the
Option had the Option been exercised immediately prior to the Change in Control, and (y) the Exercise Price of the Option. 

(a) The Administrator shall have the discretion to provide in each Option Agreement other terms and conditions that relate to
(i) vesting of such Option in the event of a Change in Control, and (ii) assumption of such Options or issuance of comparable securities or New Incentives in the event of a Change in Control. The aforementioned terms and conditions may
vary in 

  
 10 









 
each Option Agreement, and may be different from and have precedence over the provisions set forth in Sections 8.1(a) - 8.1(d) herein. 

(b) Outstanding Options shall terminate and cease to be exercisable upon consummation of a Change in Control except to the extent
that the Options are assumed by the successor entity (or parent thereof) pursuant to the terms of the Change in Control transaction. 
 (c) If outstanding Options will not be assumed by the acquiring or successor entity (or parent thereof), the Administrator shall cause written notice of a proposed Change in Control transaction to
be given to Optionees not less than fifteen (15) days prior to the anticipated effective date of the proposed transaction. 

(d) In the event of a Change in Control of the Company, all Repurchase Rights shall automatically terminate immediately prior to
the consummation of such Change in Control, and the shares of Common Stock subject to such terminated Repurchase Rights shall immediately vest in full, except to the extent that: (i) in connection with such Change in Control, the acquiring or
successor entity (or parent thereof) provides for the continuance or assumption of Stock Purchase Agreements or the substitution of new agreements of comparable value covering shares of a successor corporation, with appropriate adjustments as to the
number and kind of shares and purchase price, or (ii) such accelerated vesting is precluded by other limitations imposed by the Administrator in the Stock Purchase Agreement at the time the Restricted Stock is issued. If the Repurchase Rights
shall terminate pursuant to this subsection (e), then the Administrator shall cause written notice of the proposed Change in Control transaction to be given to Purchasers not less than fifteen (15) days prior to the anticipated effective date
of the proposed transaction. 
 (e) The Administrator in its discretion may provide in any Stock Purchase Agreement that
if, upon a Change in Control, the acquiring or successor entity (or parent thereof) provides for the continuance or assumption of such Stock Purchase Agreement or the substitution of new agreements of comparable value covering shares of a successor
corporation (with appropriate adjustments as to the number and kind of shares and purchase price), then any Repurchase Right provided for in such Stock Purchase Agreement shall terminate, and the shares of Common Stock subject to the terminated
Repurchase Right or any substituted shares shall immediately vest in full, if the Participant’s service as an employee, director, officer, consultant or other service provider to the acquiring or successor entity (or a parent or subsidiary
thereof) is terminated involuntarily or voluntarily under certain circumstances within a specified period following consummation of a Change in Control pursuant to such terms and conditions as shall be set forth in the Stock Purchase Agreement.

 ARTICLE 9. 
 AMENDMENT AND TERMINATION OF THE PLAN 
 9.1 Amendments. The Board
may from time to time alter, amend, suspend or terminate the Plan in such respects as the Board may deem advisable. No such alteration, amendment, suspension or termination shall be made which shall (i) substantially affect or impair the rights
of any Participant under an outstanding Option Agreement or Stock Purchase Agreement without such Participant’s consent, or (ii) cause this Plan, or any Award granted pursuant to it, to violate Code Section 409A. The Board may alter
or amend the Plan to comply with requirements under the Code relating to Incentive Options or other types of options which give Optionees more favorable tax 

  
 11 









 
treatment than that applicable to Options granted under this Plan as of the date of its adoption. Upon any such alteration or amendment, any outstanding Option granted hereunder may, if the
Administrator so determines and if permitted by applicable law, be subject to the more favorable tax treatment afforded to an Optionee pursuant to such terms and conditions. 
 9.2 Plan Termination. Unless the Plan shall theretofore have been terminated, the Plan shall terminate on the tenth (10th) anniversary of the Effective Date and no Options or Restricted Stock
may be granted under the Plan thereafter, but Option Agreements and Stock Purchase Agreements then outstanding shall continue in effect in accordance with their respective terms. 

ARTICLE 10. 
 TAX WITHHOLDING 
 10.1 Withholding. The Company shall have the power
to withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy any applicable Federal, state, and local tax withholding requirements with respect to any Options exercised or Restricted Stock issued under the Plan. To
the extent permissible under applicable tax, securities and other laws, the Administrator may, in its sole discretion and upon such terms and conditions as it may deem appropriate, permit a Participant to satisfy his or her obligation to pay any
such tax, in whole or in part, up to an amount determined on the basis of the highest marginal tax rate applicable to such Participant, by (a) directing the Company to apply shares of Common Stock to which the Participant is entitled as a
result of the exercise of an Option or as a result of the purchase of or lapse of restrictions on Restricted Stock or (b) delivering to the Company shares of Common Stock owned by the Participant. The shares of Common Stock so applied or
delivered in satisfaction of the Participant’s tax withholding obligation shall be valued at their Fair Market Value as of the date of measurement of the amount of income subject to withholding. 

ARTICLE 11. 
 MISCELLANEOUS 
 11.1 Benefits Not Alienable. Other than as provided
above, benefits under the Plan may not be assigned or alienated, whether voluntarily or involuntarily. Any unauthorized attempt at assignment, transfer, pledge or other disposition shall be without effect. 

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

11.3 Application of Funds. The proceeds received by the Company from the sale of Common Stock pursuant to Option Agreements and
Stock Purchase Agreements, except as otherwise provided herein, will be used for general corporate purposes. 
 11.4 Annual
and Other Periodic Reports. To the extent required by Section 260.140.46 of Title 10 of the California Code of Regulations, the Company shall provide to each Participant, not 

  
 12 









 
less frequently than annually during the period such Participant has one or more Options or rights to purchase Restricted Stock outstanding, and in the case of an individual who acquires shares
pursuant to the Plan, during the period such individual owns such shares, copies of annual financial statements. Notwithstanding the preceding sentence, the Company shall not be required to provide such statements to key employees whose duties in
connection with the Company assure their access to equivalent information. 
 11.5 Stockholder Approval. The Company
shall obtain stockholder approval of the Plan within twelve (12) months before or after the adoption of the Plan by the Board of Directors. 

  
 13