EX-4.5



 EXHIBIT 4.5 

OVERLAND STORAGE, INC. 

2003 EQUITY INCENTIVE PLAN 

(AS ORIGINALLY ADOPTED EFFECTIVE NOVEMBER 17, 2003 

AND AMENDED AND RESTATED EFFECTIVE NOVEMBER 13, 2007) 







 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	ARTICLE 1 INTRODUCTION	  	 	1	  
	ARTICLE 2 ADMINISTRATION	  	 	1	  
	 2.1
	 	Committee Composition	  	 	1	  
	 2.2
	 	Committee Authority	  	 	1	  
	 2.3
	 	Committee for Non-Officer Grants	  	 	1	  
	 2.4
	 	Scope of Discretion	  	 	2	  
	 2.5
	 	Rules of Interpretation	  	 	2	  
	 2.6
	 	Unfunded Plan	  	 	2	  
	 2.7
	 	Limitation of Liability	  	 	2	  
	 2.8
	 	Electronic Communications	  	 	2	  
	ARTICLE 3 SHARES AVAILABLE FOR GRANTS	  	 	2	  
	 3.1
	 	Basic Limitation	  	 	2	  
	 3.2
	 	Dividend Equivalents	  	 	3	  
	 3.3
	 	Additional Shares	  	 	3	  
	 3.4
	 	Cancellation of Certain Options	  	 	3	  
	ARTICLE 4 ELIGIBILITY	  	 	3	  
	 4.1
	 	Incentive Stock Options	  	 	3	  
	 4.2
	 	Other Grants	  	 	3	  
	 4.3
	 	Section 162(m) Limitation	  	 	3	  
	ARTICLE 5 OPTIONS	  	 	4	  
	 5.1
	 	Stock Option Agreement	  	 	4	  
	 5.2
	 	Number of Shares	  	 	4	  
	 5.3
	 	Exercise Price	  	 	4	  
	 5.4
	 	Exercisability and Term	  	 	4	  
	 5.5
	 	Effect of Change in Control	  	 	4	  
	 5.6
	 	Nonassignability of Options	  	 	4	  
	 5.7
	 	Substitute Options	  	 	4	  
	 5.8
	 	Limitation on ISOs	  	 	5	  
	ARTICLE 6 PAYMENT FOR OPTION SHARES	  	 	5	  
	 6.1
	 	General Rule	  	 	5	  
	 6.2
	 	Exercise/Sale	  	 	5	  
	 6.3
	 	Other Forms of Payment	  	 	5	  
	ARTICLE 7 AUTOMATIC OPTION GRANTS TO OUTSIDE DIRECTORS	  	 	5	  
	 7.1
	 	Annual Grants	  	 	5	  
	 7.2
	 	Initial Grants	  	 	6	  
	 7.3
	 	Replenishment Grants	  	 	6	  
	 7.4
	 	Accelerated Exercisability	  	 	6	  
	 7.5
	 	Exercise Price	  	 	6	  
	 7.6
	 	Term	  	 	6	  
	ARTICLE 8 STOCK APPRECIATION RIGHTS	  	 	6	  
	 8.1
	 	SAR Agreement	  	 	6	  
	 8.2
	 	Number of Shares	  	 	6	  
	 8.3
	 	Exercise Price	  	 	7	  
	 8.4
	 	Exercisability and Term	  	 	7	  
	 8.5
	 	Effect of Change in Control	  	 	7	  
	 8.6
	 	Exercise of SARs	  	 	7	  
	 8.7
	 	Nonassignability of SARs	  	 	7	  
	 8.8
	 	Substitute SARs	  	 	7	  
	ARTICLE 9 RESTRICTED SHARES	  	 	7	  


  
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	 9.1
		Restricted Stock Agreement		 	7	  
	 9.2
		Payment for Awards		 	7	  
	 9.3
		Vesting Conditions		 	8	  
	 9.4
		Voting and Dividend Rights		 	8	  
	 9.5
		Nonassignability of Restricted Shares		 	8	  
	 9.6
		Substitute Restricted Shares		 	8	  
	ARTICLE 10 STOCK UNITS		 	8	  
	 10.1
		Stock Unit Agreement		 	8	  
	 10.2
		Payment for Awards		 	8	  
	 10.3
		Vesting Conditions		 	8	  
	 10.4
		Voting and Dividend Rights		 	9	  
	 10.5
		Form and Time of Settlement of Stock Units		 	9	  
	 10.6
		Death of Recipient		 	9	  
	 10.7
		Creditors’ Rights		 	9	  
	 10.8
		Nonassignability of Stock Units		 	9	  
	 10.9
		Substitute Stock Units		 	9	  
	ARTICLE 11 PROTECTION AGAINST DILUTION		 	9	  
	 11.1
		Adjustments		 	9	  
	 11.2
		Dissolution or Liquidation		 	10	  
	 11.3
		Reorganizations		 	10	  
	ARTICLE 12 DEFERRAL OF AWARDS		 	10	  
	ARTICLE 13 AWARDS UNDER OTHER PLANS		 	11	  
	ARTICLE 14 PAYMENT OF DIRECTORS’ FEES IN SECURITIES		 	11	  
	 14.1
		Effective Date		 	11	  
	 14.2
		Elections to Receive NSOs, Restricted Shares or Stock Units		 	11	  
	 14.3
		Number and Terms of NSOs, Restricted Shares or Stock Units		 	11	  
	ARTICLE 15 LIMITATION ON RIGHTS		 	11	  
	 15.1
		Retention Rights		 	11	  
	 15.2
		Shareholders’ Rights		 	12	  
	 15.3
		Regulatory Requirements		 	12	  
	 15.4
		Code Section 409A		 	12	  
	ARTICLE 16 WITHHOLDING TAXES		 	12	  
	 16.1
		General		 	12	  
	 16.2
		Share Withholding		 	12	  
	ARTICLE 17 FUTURE OF THE PLAN		 	12	  
	 17.1
		Term of the Plan		 	12	  
	 17.2
		Amendment or Termination		 	12	  
	ARTICLE 18 LIMITATION ON PAYMENTS		 	13	  
	 18.1
		Scope of Limitation		 	13	  
	 18.2
		Basic Rule		 	13	  
	 18.3
		Reduction of Payments		 	13	  
	 18.4
		Related Corporations		 	13	  
	ARTICLE 19 DEFINITIONS		 	13	  
	ARTICLE 20 EXECUTION		 	18	  


  
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 Overland Storage, Inc. 

2003 Equity Incentive Plan 
 ARTICLE 1
INTRODUCTION. 
 The Board originally adopted the Plan effective as of the Effective Date. The purpose of the Plan is to promote the
long-term success of the Company and the creation of shareholder value by (a) encouraging Employees, Outside Directors and Consultants to focus on critical long-range objectives, (b) encouraging the attraction and retention of Employees,
Outside Directors and Consultants with exceptional qualifications and (c) linking Employees, Outside Directors and Consultants directly to shareholder interests through increased stock ownership. The Plan seeks to achieve this purpose by
providing for Awards in the form of Restricted Shares, Stock Units, Options (which may constitute incentive stock options or nonstatutory stock options) or stock appreciation rights. 

The Plan was previously amended effective as of November 15, 2004. The Board adopted this amended and restated Plan on September 22,
2007 conditioned on and subject to shareholder approval, and it was approved by the Company’s shareholders on November 13, 2007 (the “2007 Restatement Date”). 

The Plan shall be governed by, and construed in accordance with, the laws of the State of California (except its choice-of-law provisions).

 ARTICLE 2 ADMINISTRATION. 
 2.1
Committee Composition. The Committee shall administer the Plan. The Committee shall consist exclusively of two or more Directors of the Company, who shall be appointed by the Board. In addition, the composition of the Committee shall satisfy:

 (a) Such requirements as the Securities and Exchange Commission may establish for administrators acting under plans intended to qualify
for exemption under Rule 16b-3 (or its successor) under the Exchange Act; and 
 (b) Such requirements as the Internal Revenue Service may
establish for outside directors acting under plans intended to qualify for exemption under section 162(m)(4)(C) of the Code. 
 2.2
Committee Authority. Subject to the specific provisions and limitations of the Plan, and Applicable Law, the Committee shall have the authority and power to (a) select the Employees, Outside Directors and Consultants who are to receive
Awards under the Plan, (b) determine the type, number, vesting requirements, performance conditions (if any) and their degree of satisfaction, and other features and conditions of such Awards, (c) correct any defect, supply any omission,
and reconcile any inconsistency in the Plan or any Award agreement, (d) accelerate the vesting, or extend the post-termination exercise term, or waive restrictions, of Awards at any time and under such terms and conditions as it deems
appropriate, (e) interpret the Plan and any Award agreements, and (f) make all other decisions relating to the operation of the Plan. The Committee may adopt such rules or guidelines as it deems appropriate to implement the Plan. 

2.3 Committee for Non-Officer Grants. The Board may also appoint a secondary committee of the Board, which shall be composed of two or
more Directors of the Company who need not satisfy the requirements of Section 2.1. Such secondary committee may administer the Plan with respect to Employees and Consultants who are not Officers or Directors of the Company, may grant Awards
under the Plan to such Employees and Consultants and may determine all features and conditions of such Awards. Within the limitations of this Section 2.3, any reference in the Plan to the Committee shall include such secondary committee. 

  
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 2.4 Scope of Discretion. On all matters for which the Plan confers the authority, right or
power on the Board, the Committee, or a secondary committee to make decisions, that body may make those decisions in its sole and absolute discretion. Those decisions will be final, binding and conclusive. In making its decisions, the Board,
Committee or secondary committee need not treat all persons eligible to receive Awards, all Participants, or all Awards the same way. Notwithstanding anything herein to the contrary, and except as provided in Section 17.2, the discretion of the
Board, Committee or secondary committee is subject to the specific provisions and specific limitations of the Plan, as well as all rights conferred on specific Participants by Award agreements and other agreements entered into pursuant to the Plan.

 2.5 Rules of Interpretation. Any reference to a “Section” or “Article,” without more, is to a Section or
Article of the Plan. Captions and titles are used for convenience in the Plan and shall not, by themselves, determine the meaning of the Plan. Except when otherwise indicated by the context, the singular includes the plural and vice versa. Any
reference to a statute is also a reference to the applicable rules and regulations adopted under that statute. Any reference to a statute, rule or regulation, or to a section of a statute, rule or regulation, is a reference to that statute, rule,
regulation, or section as amended from time to time, both before and after the Effective Date and including any successor provisions. 
 2.6
Unfunded Plan. The Plan shall be unfunded. Although bookkeeping accounts may be established with respect to Participants, any such accounts will be used merely as a convenience. The Company shall not be required to segregate any assets on
account of the Plan, the grant of Awards, or the issuance of Common Shares. The Company and the Committee shall not be deemed to be a trustee of stock or cash to be awarded under the Plan. Any obligations of the Company to any Participant shall be
based solely upon contracts entered into under the Plan. No such obligations shall be deemed to be secured by any pledge or other encumbrance on any assets of the Company. Neither the Company nor the Committee shall be required to give any security
or bond for the performance of any such obligations. 
 2.7 Limitation of Liability. The Company (or members of the Board, Committee
or secondary committee) shall not be liable to a Participant or other persons as to: (i) the non-issuance or sale of Common Shares as to which the Company has been unable to obtain from any regulatory body having jurisdiction the authority
deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Common Shares hereunder; and (ii) any unexpected or adverse tax consequence realized by any Participant or other person due to the grant, receipt,
exercise or settlement of any Award granted hereunder. 
 2.8 Electronic Communications. Subject to compliance with Applicable Law
and/or regulations, an Award agreement or other documentation or notices relating to the Plan and/or Awards may be communicated to Participants by electronic media. 

ARTICLE 3 SHARES AVAILABLE FOR GRANTS. 

3.1 Basic Limitation. Common Shares issued pursuant to the Plan shall be authorized but unissued shares. The number of Common Shares
reserved for issuance over the term of the Plan shall not exceed 5,559,527 Common Shares. Such reserve shall consist of (i) the number of Common Shares available for issuance, as of the Effective Date, under the Prior Plans, plus
(ii) those Common Shares issued under the Prior Plans that are forfeited or repurchased at original cost by the Company after the Effective Date, or that are issuable upon exercise of options granted pursuant to the Prior Plans that expire or
become unexercisable for any reason without having been exercised in full after the Effective Date other than Prior Plan options cancelled pursuant to Section 3.4, plus (iii) an additional increase of 400,000 Common Shares approved by the
Company’s shareholders on the Effective Date plus (iv) an additional increase of 1,000,000 Common Shares approved by the Company’s shareholders on November 15, 2004, plus (v) an additional increase of 1,300,000 Common Shares
approved by the Company’s shareholders on or about November 13, 2007, minus the number of Common Shares corresponding to those Options cancelled pursuant to Section 3.4 that were originally issued under the Plan. Subject to
Section 3.3, any Common Shares to which Options or SARs pertain shall be counted against the reserve as one (1) Common Share for every one (1) Common Share subject to such Awards. Subject to Section 3.3 and Article 13, any Common
Shares to which Restricted Shares or Stock Units pertain shall be counted against the reserve as two (2) Common Shares for every one (1) Common Share subject to such Awards. The maximum aggregate number of Common Shares that may be issued
under the Plan through ISOs is 5,559,527. The limitations of this Section 3.1 shall be subject to 

  
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adjustment pursuant to Article 11. The number of Common Shares that are subject to Awards outstanding at any time under the Plan shall not exceed the number of Common Shares which then remain
available for issuance under the Plan. The Company, during the term of the Plan, shall at all times reserve and keep available sufficient shares to satisfy the requirements of the Plan. 

3.2 Dividend Equivalents. Any dividend equivalents paid or credited under the Plan shall not be applied against the number of Common
Shares available for Awards. 
 3.3 Additional Shares. If Common Shares issued upon the exercise of Options are forfeited, then such
Common Shares shall again become available for Awards under the Plan. If Restricted Shares are forfeited, then such Common Shares (multiplied by 2) shall again become available for Awards under the Plan. Except as otherwise set forth in
Section 3.4, if Options or SARs are forfeited or terminate for any other reason before being exercised, then the corresponding Common Shares shall again become available for Awards under the Plan. Subject to Article 13, if Stock Units are
forfeited or terminate for any other reason before being exercised, then the corresponding Common Shares (multiplied by 2 to the extent the reserve under Section 3.1 was depleted on a 2-for-1 basis with respect to such Stock Units) shall again
become available for Awards under the Plan. Subject to Article 13, if Stock Units are settled, then only the number of Common Shares (if any) actually issued in settlement of such Stock Units (multiplied by 2 to the extent the reserve under
Section 3.1 was depleted on a 2-for-1 basis with respect to such Stock Units) shall reduce the number available under Section 3.1 and the balance shall again become available for Awards under the Plan. If SARs are exercised, then only the
number of Common Shares (if any) actually issued in settlement of such SARs shall reduce the number available under Section 3.1 and the balance shall again become available for Awards under the Plan. The foregoing notwithstanding, the aggregate
number of Common Shares that may be issued under the Plan upon the exercise of ISOs shall not be increased when Restricted Shares or other Common Shares are forfeited. The provisions of this Section 3.3 shall be subject to adjustment pursuant
to Article 11. 
 3.4 Cancellation of Certain Options. If the Company’s shareholders’ approve this amended and restated
Plan, then such approval shall also constitute the requisite Company shareholder approval required under Section 17.2 and the rules of the NASDAQ Stock Market for purposes of cancelling the Options described on Exhibit A. Any and all Common
Shares underlying the Options cancelled under this Section 3.4 shall not again become available for Awards under the Plan. 
 ARTICLE 4 ELIGIBILITY.

 4.1 Incentive Stock Options. Only Employees who are common-law employees of the Company, a Parent or a Subsidiary shall be
eligible for the grant of ISOs. 
 4.2 Other Grants. Employees, Outside Directors and Consultants, including prospective Employees,
Directors and Consultants conditioned on the beginning of their Service, shall be eligible for the grant of Restricted Shares, Stock Units, NSOs or SARs. 

4.3 Section 162(m) Limitation. 

(a) Options And SARs. Subject to the provisions of this section 4.3, for so long as the Company is a “publicly held
corporation” within the meaning of Section 162(m) of the Code: (i) no Employee may be granted one or more SARs and Options within any fiscal year of the Company under the Plan to purchase more than 400,000 Common Shares under Options
or to receive compensation calculated with reference to more than that number of Common Shares under SARs, subject to adjustment pursuant to Article 11. If an Option or SAR is cancelled without being exercised, that cancelled Option or SAR shall
continue to be counted against the limit on Awards that may be granted to any individual under this Section 4.3. 
 (b) Cash Awards
And Stock Awards. Any Award intended as “qualified performance-based compensation” within the meaning of section 162(m) of the Code must vest or become exercisable contingent on the achievement of one or more Objectively Determinable
Performance Conditions. The 

  
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Committee shall have the discretion to determine the time and manner of compliance with section 162(m) of the Code. 

ARTICLE 5 OPTIONS. 
 5.1 Stock Option
Agreement. Each grant of an Option under the Plan shall be evidenced by a Stock Option Agreement between the Optionee and the Company. Such Option shall be subject to all applicable terms of the Plan and may be subject to any other terms that
are not inconsistent with the Plan. The Stock Option Agreement shall specify whether the Option is an ISO or an NSO. The provisions of the various Stock Option Agreements entered into under the Plan need not be identical. Options may be granted in
consideration of a reduction in the Optionee’s other compensation. 
 5.2 Number of Shares. Each Stock Option Agreement shall
specify the number of Common Shares subject to the Option and shall provide for the adjustment of such number in accordance with Article 11. 

5.3 Exercise Price. Each Stock Option Agreement shall specify the Exercise Price; provided that the Exercise Price under an Option shall
in no event be less than 100% of the Fair Market Value of a Common Share on the date of grant (and shall not be less than 110% of the Fair Market Value for an ISO granted to a Ten Percent Shareholder). 

5.4 Exercisability and Term. Each Stock Option Agreement shall specify the date or event when all or any installment of the Option is to
become exercisable. The Stock Option Agreement shall also specify the term of the Option; provided that the term of an ISO shall in no event exceed 10 years from the date of grant (and shall not exceed 5 years from the date of grant for a Ten
Percent Shareholder). Notwithstanding any provision in the Plan or any Award agreement to the contrary, the maximum term of an Option (including ISOs and those Options awarded under Article 7) granted on or after the 2007 Restatement Date shall not
exceed 6 years from the date of grant. If an Optionee changes status from an Employee to a Consultant or Outside Director, that Optionee’s ISOs become NSOs if not exercised within the three-month period beginning with the Optionee’s
termination of Service as an Employee for any reason other than the Optionee’s death or disability (as defined in Section 22(e) of the Code). An ISO shall be treated as an NSO if it remains exercisable after, and is not exercised within,
the three-month period described above. If an Optionee’s Service terminates due to disability, any ISO held by such Optionee shall be treated as an NSO if it remains exercisable after, and is not exercised within, one year after termination of
the Optionee’s Service. A Stock Option Agreement may provide for accelerated exercisability in the event of the Optionee’s death, disability or retirement or other events and may provide for expiration prior to the end of its term in the
event of the termination of the Optionee’s Service. Options may be awarded in combination with SARs, and such an Award may provide that the Options will not be exercisable unless the related SARs are forfeited. No Option granted to an
individual who is subject to the overtime pay provisions of the Fair Labor Standards Act may be exercised before the expiration of six months after the Grant Date. 

5.5 Effect of Change in Control. The Committee may determine, at the time of granting an Option or thereafter, that such Option shall
become exercisable as to all or part of the Common Shares subject to such Option in the event that a Change in Control occurs with respect to the Company or in the event that the Optionee is subject to an Involuntary Termination after a Change in
Control. In addition, acceleration of exercisability may be required under Section 11.3. 
 5.6 Nonassignability of Options.
Except as determined by the Committee, no Option shall be assignable or otherwise transferable by the Participant except by will or by the laws of descent and distribution. However, Options may be transferred and exercised in accordance with a
Domestic Relations Order and may be exercised by a guardian or conservator appointed to act for the Participant. No rights under an ISO may be transferred by the Participant, other than to a trust where under section 671 of the Code and other
Applicable Law the Participant is considered the sole beneficial owner of the Option while it is held in trust, or by will or the laws of descent and distribution. The Company’s compliance with a Domestic Relations Order, or the exercise of an
ISO by a guardian or conservator appointed to act for the Participant, shall not violate this Section 5.6. 
 5.7 Substitute
Options. The Board may cause the Company to grant Substitute Options in connection with the acquisition by the Company or a Parent, Subsidiary or Affiliate of equity securities of any entity 

  
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(including by merger, tender offer, or other similar transaction) or of all or a portion of the assets of any entity. Any such substitution shall be effective on the effective date of the
acquisition. Substitute Options may be NSOs or ISOs. Unless and to the extent specified otherwise by the Board, Substitute Options shall have the same terms and conditions as the options they replace, except that (subject to the provisions of
Article 11) Substitute Options shall be Options to purchase Common Shares rather than equity securities of the granting entity and shall have an Exercise Price adjusted appropriately, as determined by the Board. 

5.8 Limitation on ISOs. Options intended to be ISOs that are granted to any single Optionee under all incentive stock option plans of
the Company and its Parents or Subsidiaries, including ISOs granted under the Plan, may not vest at a rate of more than $100,000 in Fair Market Value of stock (measured on the grant dates of the options) during any calendar year. For this purpose,
an Option vests with respect to a given Common Share the first time its holder may purchase that Common Share, notwithstanding any right of the Company to repurchase that Common Share. Unless the administrator of that option plan specifies otherwise
in the related agreement governing the option, this vesting limitation shall be applied by, to the extent necessary to satisfy this $100,000 rule, treating certain stock options that were intended to be ISOs as NSOs. The stock options or portions of
stock options to be reclassified as NSOs are those with the highest option prices, whether granted under the Plan or any other equity compensation plan of the Company or any Parent, Subsidiary or Affiliate that permits that treatment. This
Section 5.8 shall not cause an ISO to vest before its original vesting date or cause an ISO that has already vested to cease to be vested. 

ARTICLE 6 PAYMENT FOR OPTION SHARES. 
 6.1
General Rule. The entire Exercise Price of Common Shares issued upon exercise of Options shall be payable in cash or cash equivalents denominated in U.S. dollars (except as specified by the Committee for non-U.S. Employees or non-U.S.
sub-plans) at the time when such Common Shares are purchased, except as follows: 
 (a) In the case of an ISO granted under the Plan, payment
shall be made only pursuant to the express provisions of the applicable Stock Option Agreement. The Stock Option Agreement may specify that payment may be made in any form(s) described in this Article 6. 

(b) In the case of an NSO, the Committee may at any time accept payment in any form(s) described in this Article 6. 

6.2 Exercise/Sale. To the extent that this Section 6.2 is applicable, all or any part of the Exercise Price and any withholding
taxes may be paid by delivering (on a form prescribed by the Company) an irrevocable direction to a securities broker approved by the Company to sell all or part of the Common Shares being purchased under the Plan and to deliver all or part of the
sales proceeds to the Company; provided that to the extent the Company would be deemed to extend or arrange for the extension of credit in the form of a personal loan to an Optionee under the foregoing procedure, no Officer or Director may use the
foregoing procedure to pay the Exercise Price. 
 6.3 Other Forms of Payment. To the extent that this Section 6.3 is applicable,
all or any part of the Exercise Price and any withholding taxes may be paid in any other form that is consistent with Applicable Law, regulations and rules. 

ARTICLE 7 AUTOMATIC OPTION GRANTS TO OUTSIDE DIRECTORS. 

7.1 Annual Grants. Upon the conclusion of each regular annual meeting of the Company’s shareholders held in the year 2003 or
thereafter, each Outside Director who will continue serving as a member of the Board thereafter shall receive an NSO covering 18,000 Common Shares, except that such NSO shall not be granted in a calendar year in which the same Outside Director holds
a nonqualified stock option issued with respect to Board Service under a Prior Plan which is not fully vested upon the date of such annual meeting. NSOs granted under this Section 7.1 shall become exercisable in twelve (12) equal monthly
installments over the twelve-month period commencing on the first monthly anniversary of the date of grant, with the last vesting date being the first annual 

  
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anniversary of the date of grant, subject to continuing Service. An Outside Director who previously was an Employee shall be eligible to receive grants under this Section 7.1. 

7.2 Initial Grants. Each Outside Director who first becomes a member of the Board after the Effective Date shall receive a one-time
grant of an NSO covering the number of Common Shares determined by multiplying 1,500 by the whole number of months remaining until the next regular annual meeting of the Company’s shareholders, giving credit for any partial month. Such NSO
shall be granted on the date when such Outside Director first joins the Board and shall become exercisable in equal monthly installments commencing on the first monthly anniversary of the date of grant and ending on the date of such next annual
meeting, with the last vesting date being the date of such next annual meeting, subject to continuing Service. An Outside Director who previously was an Employee shall be eligible to receive a grant under this Section 7.2. 

7.3 Replenishment Grants. Each Outside Director who currently holds any nonqualified stock option issued with respect to Board Service
under a Prior Plan which was not fully vested upon the date of a regular annual meeting of the Company’s shareholders held in the year 2003 or thereafter, shall upon the date that all such nonqualified options become fully vested, receive a
one-time grant of an NSO covering the number of Common Shares determined by multiplying 1,500 by the whole number of months remaining until the next regular annual meeting of the Company’s shareholders, giving credit for any partial month. Such
NSO shall become exercisable in equal monthly installments commencing on the first monthly anniversary of the date of grant and ending on the date of such next annual meeting, with the last vesting date being the date of such next annual meeting,
subject to continuing Service. An Outside Director who previously was an Employee shall be eligible to receive a grant under this Section 7.3. 

7.4 Accelerated Exercisability. All NSOs granted to an Outside Director under this Article 7 shall also become exercisable in full in
the event that: 
 (a) Such Outside Director’s Service terminates because of death or total and permanent disability; or 

(b) The Company is subject to a Change in Control before such Outside Director’s Service terminates. 

Acceleration of exercisability may also be required by Section 11.3. 

7.5 Exercise Price. The Exercise Price under all NSOs granted to an Outside Director under this Article 7 shall be equal to 100% of the
Fair Market Value of a Common Share on the date of grant, payable in one of the forms described in Sections 6.1, 6.2 and 6.3. 
 7.6
Term. All NSOs granted to an Outside Director under this Article 7 shall terminate on the earliest of (a) the 10th anniversary of the date of grant for NSOs granted prior to the 2007 Restatement Date, and the 6th anniversary for NSOs
granted on or after the 2007 Restatement Date, (b) the date three (3) months after the termination of such Outside Director’s Service for any reason other than death or total and permanent disability or (c) the date twelve
(12) months after the termination of such Outside Director’s Service because of death or total and permanent disability. 
 ARTICLE 8 STOCK
APPRECIATION RIGHTS. 
 8.1 SAR Agreement. Each grant of an SAR under the Plan shall be evidenced by an SAR Agreement between the
Optionee and the Company. Such SAR shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various SAR Agreements entered into under the Plan need not
be identical. SARs may be granted in consideration of a reduction in the Optionee’s other compensation. 
 8.2 Number of Shares.
Each SAR Agreement shall specify the number of Common Shares to which the SAR pertains and shall provide for the adjustment of such number in accordance with Article 11. 

  
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 8.3 Exercise Price. Each SAR Agreement shall specify the Exercise Price. An SAR Agreement
may specify an Exercise Price that varies in accordance with a predetermined formula while the SAR is outstanding. 
 8.4 Exercisability
and Term. Each SAR Agreement shall specify the date when all or any installment of the SAR is to become exercisable. The SAR Agreement shall also specify the term of the SAR. Notwithstanding any provision in the Plan or any Award agreement to
the contrary, the maximum term of a SAR granted on or after the 2007 Restatement Date shall not exceed 6 years from the date of grant. The grant or vesting of an SAR may be made contingent on the achievement of performance conditions. An SAR
Agreement may provide for accelerated exercisability in the event of the Optionee’s death, disability or retirement or other events and may provide for expiration prior to the end of its term in the event of the termination of the
Optionee’s Service. SARs may be awarded in combination with Options, and such an Award may provide that the SARs will not be exercisable unless the related Options are forfeited. An SAR may be included in an ISO only at the time of grant but
may be included in an NSO at the time of grant or thereafter. An SAR granted under the Plan may provide that it will be exercisable only in the event of a Change in Control. 

8.5 Effect of Change in Control. The Committee may determine, at the time of granting an SAR or thereafter, that such SAR shall become
fully exercisable as to all Common Shares subject to such SAR in the event that the Company is subject to a Change in Control or in the event that the Optionee is subject to an Involuntary Termination after a Change in Control. In addition,
acceleration of exercisability may be required under Section 11.3. 
 8.6 Exercise of SARs. Upon exercise of an SAR, the Optionee
(or any person having the right to exercise the SAR after his or her death) shall receive from the Company (a) Common Shares, (b) cash or (c) a combination of Common Shares and cash, as the Committee shall determine, over the period
or periods set forth in the SAR Agreement. An SAR Agreement may place limits on the amount that may be paid over any specified period or periods upon the exercise of an SAR, on an aggregate basis or as to any Participant. The amount of cash and/or
the Fair Market Value of Common Shares received upon exercise of SARs shall, in the aggregate, be equal to the amount by which the Fair Market Value (on the date of surrender) of the Common Shares subject to the SARs exceeds the Exercise Price. If,
on the date when an SAR expires, the Exercise Price under such SAR is less than the Fair Market Value on such date but any portion of such SAR has not been exercised or surrendered, then such SAR shall automatically be deemed to be exercised as of
such date with respect to such portion. 
 8.7 Nonassignability of SARs. Except as determined by the Committee, no SAR shall be
assignable or otherwise transferable by the Participant except by will or by the laws of descent and distribution. However, SARs may be transferred and exercised in accordance with a Domestic Relations Order and may be exercised by a guardian or
conservator appointed to act for the Participant. 
 8.8 Substitute SARs. The Board may cause the Company to grant Substitute SARs in
connection with the acquisition by the Company or a Parent, Subsidiary or Affiliate of equity securities of any entity (including by merger, tender offer, or other similar transaction) or of all or a portion of the assets of any entity. Any such
substitution shall be effective on the effective date of the acquisition. Unless and to the extent specified otherwise by the Board, Substitute SARs shall have the same terms and conditions as the SARs they replace, except that (subject to the
provisions of Article 11) Substitute SARs shall be exercisable with respect to the Fair Market Value of Common Shares rather than equity securities of the granting entity and shall be on terms that, as determined by the Board in its sole and
absolute discretion, properly reflect that substitution. 
 ARTICLE 9 RESTRICTED SHARES. 

9.1 Restricted Stock Agreement. Each grant of Restricted Shares under the Plan shall be evidenced by a Restricted Stock Agreement
between the recipient and the Company. Such Restricted Shares shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Restricted Stock
Agreements entered into under the Plan need not be identical. 
 9.2 Payment for Awards. Subject to the following sentence, Restricted
Shares may be sold or awarded under the Plan for such consideration as the Committee may determine, including (without limitation) 

  
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cash, cash equivalents, labor done, services actually rendered to the Company or for its benefit or in its reorganization, debts or securities cancelled, tangible or intangible property actually
received either by the Company or a wholly-owned subsidiary, and promissory notes (provided the recipient is an Employee who is not a Director or Officer at the time of grant). All cash and cash equivalents shall be dominated in U.S. dollars except
as specified by the Committee for non-U.S. Employees or non-U.S. sub-plans. 
 9.3 Vesting Conditions. Each Award of Restricted Shares
may or may not be subject to vesting. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Restricted Stock Agreement. The Committee may include among such conditions the achievement of Objectively
Determinable Performance Conditions. In no event shall the number of Restricted Shares which are subject to performance-based vesting conditions and which are granted to any one Participant in any single fiscal year of the Company exceed 100,000,
subject to adjustment in accordance with Article 11. A Restricted Stock Agreement may provide for accelerated vesting in the event of the Participant’s death, disability or retirement or other events. The Committee may determine, at the time of
granting Restricted Shares or thereafter, that all or part of such Restricted Shares shall become vested in the event that a Change in Control occurs with respect to the Company or in the event that the Participant is subject to an Involuntary
Termination after a Change in Control. 
 9.4 Voting and Dividend Rights. The holders of Restricted Shares awarded under the Plan
shall have the same voting, dividend and other rights as the Company’s other shareholders. A Restricted Stock Agreement, however, may require that the holders of Restricted Shares invest any cash dividends received in additional Restricted
Shares. Such additional Restricted Shares shall be subject to the same conditions and restrictions as the Award with respect to which the dividends were paid. 

9.5 Nonassignability of Restricted Shares. Except as determined by the Committee, no Restricted Shares shall be assignable or otherwise
transferable by the Participant except by will or by the laws of descent and distribution until such time as the Restricted Shares have vested. Notwithstanding anything to the contrary herein, Restricted Shares may be transferred and exercised in
accordance with a Domestic Relations Order. 
 9.6 Substitute Restricted Shares. The Board may cause the Company to grant Substitute
Restricted Shares in connection with the acquisition by the Company or a Parent, Subsidiary or Affiliate of equity securities of any entity (including by merger) or all or a portion of the assets of any entity. Unless and to the extent specified
otherwise by the Board, Substitute Restricted Shares shall have the same terms and conditions as the restricted shares they replace, except that (subject to the provisions of Article 11) Substitute Restricted Shares shall be Common Shares rather
than equity securities of the granting entity and shall be on terms that, as determined by the Board in its sole and absolute discretion, properly reflect the substitution. Any such Substituted Restricted Shares shall be granted effective on the
effective date of the acquisition. 
 ARTICLE 10 STOCK UNITS. 

10.1 Stock Unit Agreement. Each grant of Stock Units under the Plan shall be evidenced by a Stock Unit Agreement between the recipient
and the Company. Such Stock Units shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Stock Unit Agreements entered into under the Plan
need not be identical. Stock Units may be granted in consideration of a reduction in the recipient’s other compensation. 
 10.2
Payment for Awards. To the extent that an Award is granted in the form of Stock Units, no cash consideration shall be required of the Award recipients. 

10.3 Vesting Conditions. Each Award of Stock Units may or may not be subject to vesting. Vesting shall occur, in full or in
installments, upon satisfaction of the conditions specified in the Stock Unit Agreement. The Committee may include among such conditions the achievement of Objectively Determinable Performance Conditions. In no event shall the number of Stock Units
which are subject to performance-based vesting conditions and which are granted to any one Participant in any single fiscal year of the Company exceed 100,000, subject to adjustment in accordance with Article 11. A Stock Unit Agreement may provide
for accelerated vesting in the event of the Participant’s death, disability or retirement or other events. The Committee may determine, at the time of granting Stock Units or thereafter, that all or part of such Stock Units shall become vested


  
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in the event that the Company is subject to a Change in Control or in the event that the Participant is subject to an Involuntary Termination after a Change in Control. In addition, acceleration
of vesting may be required under Section 11.3. 
 10.4 Voting and Dividend Rights. The holders of Stock Units shall have no
voting rights. Prior to settlement or forfeiture, any Stock Unit awarded under the Plan may, at the Committee’s discretion, carry with it a right to dividend equivalents. Such right entitles the holder to be credited with an amount equal to all
cash dividends paid on one Common Share while the Stock Unit is outstanding. Dividend equivalents may be converted into additional Stock Units. Settlement of dividend equivalents may be made in the form of cash, in the form of Common Shares, or in a
combination of both, as determined by the Committee. Prior to distribution, any dividend equivalents that are not paid shall be subject to the same conditions and restrictions as the Stock Units to which they attach. 

10.5 Form and Time of Settlement of Stock Units. Settlement of vested Stock Units may be made in the form of (a) cash,
(b) Common Shares or (c) any combination of both, as determined by the Committee, over the period or periods established by the Committee. A Stock Units Award may place limits on the amount that may be paid over any specified period or
periods, on an aggregate basis or as to any Participant. The actual number of Stock Units eligible for settlement may be larger or smaller than the number included in the original Award, based on performance criteria. Methods of converting Stock
Units into cash may include (without limitation) a method based on the average Fair Market Value of Common Shares over a series of trading days. Distribution on settlement may occur or commence when all vesting conditions applicable to the Stock
Units have been satisfied or have lapsed, or it may be deferred to any later date. The amount of a deferred distribution may be increased by an interest factor or by dividend equivalents. Until an Award of Stock Units is settled, the number of such
Stock Units shall be subject to adjustment pursuant to Article 11. 
 10.6 Death of Recipient. Any Stock Units Award that becomes
payable after the recipient’s death shall be distributed to the recipient’s beneficiary or beneficiaries. Each recipient of a Stock Units Award under the Plan shall designate one or more beneficiaries for this purpose by filing the
prescribed form with the Company. A beneficiary designation may be changed by filing the prescribed form with the Company at any time before the Award recipient’s death. If no beneficiary was designated or if no designated beneficiary survives
the Award recipient, then any Stock Units Award that becomes payable after the recipient’s death shall be distributed to the recipient’s estate. 

10.7 Creditors’ Rights. A holder of Stock Units shall have no rights other than those of a general creditor of the Company. Stock
Units represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Stock Unit Agreement. 

10.8 Nonassignability of Stock Units. Except as determined by the Committee, no Stock Units Award shall be assignable or otherwise
transferable by the Participant except by will or by the laws of descent and distribution. Notwithstanding anything to the contrary herein, Stock Units Awards may be transferred and exercised in accordance with a Domestic Relations Order. 

10.9 Substitute Stock Units. The Board may cause the Company to grant Substitute Stock Units in connection with the acquisition by the
Company or a Parent, Subsidiary or Affiliate of equity securities of any entity (including by merger) or all or a portion of the assets of any entity. Unless and to the extent specified otherwise by the Board, Substitute Stock Units shall have the
same terms and conditions as the stock units they replace, except that (subject to the provisions of Article 11) Substitute Stock Units shall be settled with respect to the Fair Market Value of the Common Shares rather than equity securities of the
granting entity and shall be on terms that, as determined by the Board in its sole and absolute discretion, properly reflect the substitution. 
 ARTICLE
11 PROTECTION AGAINST DILUTION. 
 11.1 Adjustments. In the event of a subdivision of the outstanding Common Shares, a declaration
of a dividend payable in Common Shares or a combination or consolidation of the outstanding Common Shares (by reclassification or otherwise) into a lesser number of Common Shares, corresponding proportionate adjustments shall automatically be made
in each of the following: 

  
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 (a) The number of Common Shares reserved for issuance over the term of the Plan as set forth
under Section 3.1, and the number of Common Shares underlying the Stock Options cancelled pursuant to Section 3.4 and not returning to the Plan; 

(b) The number of Options, SARs, Restricted Shares and Stock Units available for future Awards under Article 3; 

(c) The number of Common Shares covered by automatic grants pursuant to Sections 7.1, 7.2 and 7.3; 

(d) The limitations set forth in Sections 4.3(a), 9.3 and 10.3; 

(e) The number of Common Shares covered by each outstanding Option and SAR; 

(f) The Exercise Price under each outstanding Option and SAR; or 

(g) The number of Stock Units included in any prior Award that has not yet been settled. 

In the event of a declaration of an extraordinary dividend payable in a form other than Common Shares in an amount that has a material effect on the price of
Common Shares, a recapitalization, a spin-off or a similar occurrence, the Committee shall make such proportionate adjustments as it, in its sole discretion, deems appropriate in one or more of the foregoing. Except as provided in this Article 11, a
Participant shall have no rights by reason of any issuance by the Company of stock of any class or securities convertible into stock of any class, any subdivision or consolidation of shares of stock of any class, the payment of any stock dividend or
any other increase or decrease in the number of shares of stock of any class. Any adjustment of Common Shares pursuant to this Section 11.1 shall be rounded down to the nearest whole number of Common Shares. Under no circumstances shall the
Company be required to authorize or issue fractional shares and no consideration shall be provided as a result of any fractional shares not being issued or authorized. 

11.2 Dissolution or Liquidation. To the extent not previously exercised or settled, Options, SARs, and Stock Units shall terminate
immediately prior to the dissolution or liquidation of the Company. 
 11.3 Reorganizations. In the event that the Company is a party
to a merger or other reorganization, outstanding Awards shall be subject to the agreement of merger or reorganization. Such agreement may provide for (a) the continuation of the outstanding Awards by the Company, if the Company is a surviving
corporation, (b) the assumption of the outstanding Awards by the surviving corporation or its parent or subsidiary, (c) the substitution by the surviving corporation or its parent or subsidiary of its own awards for the outstanding Awards,
(d) full exercisability or vesting and accelerated expiration of the outstanding Awards, or (e) settlement of the full value of the outstanding Awards in cash or cash equivalents followed by cancellation of such Awards. In the event of a
Divestiture, the Board may, but need not, direct that one or more of the foregoing actions be taken with respect to Awards held by, for example, Employees, Outside Directors or Consultants for whom the transaction or event resulted in a termination
of Service. The Board need not adopt the same rules for each Award or Participant. 
 ARTICLE 12 DEFERRAL OF AWARDS. 

The Committee (in its sole discretion) may permit or require a Participant to: 

(a) Have cash that otherwise would be paid to such Participant as a result of the exercise of an SAR or the settlement of Stock Units credited
to a deferred compensation account established for such Participant by the Committee as an entry on the Company’s books; 
 (b) Have
Common Shares that otherwise would be delivered to such Participant as a result of the exercise of an Option or SAR converted into an equal number of Stock Units; or 

  
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 (c) Have Common Shares that otherwise would be delivered to such Participant as a result of the
exercise of an Option or SAR or the settlement of Stock Units converted into amounts credited to a deferred compensation account established for such Participant by the Committee as an entry on the Company’s books. Such amounts shall be
determined by reference to the Fair Market Value of such Common Shares as of the date when they otherwise would have been delivered to such Participant. 

A deferred compensation account established under this Article 12 may be credited with interest or other forms of investment return, as
determined by the Committee. A Participant for whom such an account is established shall have no rights other than those of a general creditor of the Company. Such an account shall represent an unfunded and unsecured obligation of the Company and
shall be subject to the terms and conditions of the applicable agreement between such Participant and the Company. If the deferral or conversion of Awards is permitted or required, the Committee (in its sole discretion) may establish rules,
procedures and forms pertaining to such Awards, including (without limitation) the settlement of deferred compensation accounts established under this Article 12. 

Any and all arrangements under this Article 12 must comply with the rules and requirements of Section 409A of the Code including, without
limitation, the requirements for the timing of deferral elections and the Delay In Payments to Specified Employees. 
 ARTICLE 13 AWARDS UNDER OTHER
PLANS. 
 The Company may grant awards under other plans or programs. Such awards may be settled in the form of Common Shares issued
under the Plan. Such Common Shares shall be treated for all purposes under the Plan like Common Shares issued in settlement of Stock Units and shall, when issued, reduce the number of Common Shares available under Article 3. Notwithstanding the
foregoing, Common Shares issued pursuant to this Article 13 shall be counted against the Plan reserve as one (1) Common Share to the extent such shares are issued in respect of awards under other plans or programs that have substantially
similar terms and conditions to Options or SARs granted under the Plan, including, with respect to stock options or equivalent securities, an exercise price at least equal to the fair market value of the securities for which the stock option or
equivalent security is exercisable, measured at the date of grant. 
 ARTICLE 14 PAYMENT OF DIRECTORS’ FEES IN SECURITIES. 

14.1 Effective Date. No provision of this Article 14 shall be effective unless and until the Board has determined to implement such
provision. 
 14.2 Elections to Receive NSOs, Restricted Shares or Stock Units. An Outside Director may elect to receive his or her
annual retainer payments and/or meeting fees from the Company in the form of cash, NSOs, Restricted Shares or Stock Units, or a combination thereof, as determined by the Board. Such NSOs, Restricted Shares and Stock Units shall be issued under the
Plan. An election under this Article 14 shall be filed with the Company on the prescribed form. 
 14.3 Number and Terms of NSOs,
Restricted Shares or Stock Units. The number of NSOs, Restricted Shares or Stock Units to be granted to Outside Directors in lieu of annual retainers and meeting fees that would otherwise be paid in cash shall be calculated in a manner
determined by the Board. The Board shall also determine the terms of such NSOs, Restricted Shares or Stock Units. 
 ARTICLE 15 LIMITATION ON RIGHTS.

 15.1 Retention Rights. Neither the Plan nor any Award granted under the Plan shall be deemed to give any individual a right to
remain an Employee, Outside Director or Consultant. The Company and its Parents, Subsidiaries and Affiliates reserve the right to terminate the Service of any Employee, Outside Director or Consultant at any time, with or without cause, subject to
Applicable Law, the Company’s articles of incorporation and by-laws and a written employment agreement (if any). 

  
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 15.2 Shareholders’ Rights. A Participant shall have no dividend rights, voting rights
or other rights as a shareholder with respect to any Common Shares covered by his or her Award prior to the time when a stock certificate for such Common Shares is issued or, if applicable, the time when he or she becomes entitled to receive such
Common Shares by satisfying all requirements for exercise at a time when the Company is obligated to deliver such Common Shares under the terms of the Award agreement and this Plan. No adjustment shall be made for cash dividends or other rights for
which the record date is prior to such time, except as expressly provided in the Plan. 
 15.3 Regulatory Requirements. Any other
provision of the Plan notwithstanding, the obligation of the Company to issue Common Shares under the Plan shall be subject to all Applicable Law. The Company reserves the right to restrict, in whole or in part, the delivery of Common Shares
pursuant to any Award prior to the satisfaction of all Applicable Law relating to the issuance of such Common Shares, to their registration, qualification or listing or to an exemption from registration, qualification or listing. 

15.4 Code Section 409A. Notwithstanding anything in the Plan to the contrary, the Plan and Awards granted hereunder are intended to
comply with the requirements of Code Section 409A and shall be interpreted in a manner consistent with such intention. 
 ARTICLE 16 WITHHOLDING
TAXES. 
 16.1 General. To the extent required by Applicable Law, a Participant or his or her successor shall make arrangements
satisfactory to the Company for the satisfaction of any withholding tax obligations that arise in connection with the Plan. The Company shall not be required to issue any Common Shares or make any cash payment under the Plan until such obligations
are satisfied. 
 16.2 Share Withholding. To the extent that Applicable Law subjects a Participant to tax withholding obligations, the
Committee may establish procedures that may permit such Participant to satisfy all or part of such obligations by having the Company withhold all or a portion of any Common Shares that otherwise would be issued to him or her or by surrendering all
or a portion of any Common Shares that he or she previously acquired. Such Common Shares shall be valued at their Fair Market Value on the date when they are withheld or surrendered. 

ARTICLE 17 FUTURE OF THE PLAN. 
 17.1
Term of the Plan. The Plan became effective on the Effective Date. The Plan, as amended or restated from time to time, shall remain in effect until it is terminated under Section 17.2, except that no ISOs shall be granted on or after the
10th anniversary of the later of (a) the date when the Board originally adopted the Plan or (b) the date when the Board adopted the most recent increase in the number of Common Shares available under Article 3 that was approved by the
Company’s shareholders. 
 17.2 Amendment or Termination. The Board may, at any time and for any reason, amend or terminate the
Plan. An amendment of the Plan shall be subject to the approval of the Company’s shareholders only to the extent required by Applicable Law. No Awards shall be granted under the Plan after the termination thereof. The termination of the Plan,
or any amendment thereof, shall not impair the rights of any Participant under any Award previously granted under the Plan unless the Participant consents to such amendment. The Board or the Committee may amend the terms of any existing Award,
prospectively or retroactively, but no such amendment shall impair the rights of any Participant unless the Participant consents to such amendment. The Board or the Committee may not amend the terms of any Option or SAR to reduce the Exercise Price
(except pursuant to Article 11), or cancel any Option or SAR and grant a new Option or SAR with a lower Exercise Price such that the effect would be the same as reducing the Exercise Price, without the approval of the Company’s shareholders.
Notwithstanding anything herein to the contrary, no consent of a Participant shall be required if the Board determines, in its sole and absolute discretion, that the amendment, suspension, termination, or modification: (a) is required or
advisable in order for the Company, the Plan or the Award to satisfy Applicable Law, to meet the requirements of any accounting standard or to avoid any adverse accounting treatment, or (b) in connection with any transaction or event described
in Article 11, is in the best interests of the Company or its shareholders. The Board may, but need not, take the tax or accounting consequences to affected Participants into consideration in acting 


  
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under the preceding sentence. Those decisions shall be final, binding and conclusive. Termination of the Plan shall not affect the Committee’s ability to exercise the powers granted to it
under the Plan with respect to Awards granted before the termination notwithstanding that Awards become exercisable or are to be settled after the termination. 

ARTICLE 18 LIMITATION ON PAYMENTS. 
 18.1
Scope of Limitation. This Article 18 shall apply to an Award only if: 
 (a) The after-tax value of such Award to the Participant,
taking into account the effect of all federal, state and local income taxes, employment taxes and excise taxes applicable to the Participant (including the excise tax under section 4999 of the Code), will be greater after the application of this
Article 18 than it was before the application of this Article 18; or 
 (b) The Committee, at the time of making an Award under the Plan or
at any time thereafter, specifies in writing that such Award shall be subject to this Article 18 (regardless of the after-tax value of such Award to the Participant). 

If this Article 18 applies to an Award, it shall supersede any contrary provision of the Plan or of any Award granted under the Plan. 

18.2 Basic Rule. In the event that any payment or transfer by the Company under the Plan to or for the benefit of a Participant (a
“Payment”) would be nondeductible by the Company for federal income tax purposes because of the provisions concerning “excess parachute payments” in section 280G of the Code, after taking into account all other “excess
parachute payments,” including any reductions of such payments to avoid excise taxes under section 4999 of the Code, then the aggregate present value of all Payments shall be reduced (but not below zero) to the Reduced Amount. For purposes of
this Article 18, the “Reduced Amount” shall be the amount, expressed as a present value, which maximizes the aggregate present value of the Payments without causing any Payment to be nondeductible by the Company because of section 280G of
the Code. 
 18.3 Reduction of Payments. If any Payment would be nondeductible by the Company because of section 280G of the Code,
then the Company shall promptly give the Participant notice to that effect and a copy of the detailed calculation thereof and of the Reduced Amount, and the Participant may then elect, in his or her sole discretion, which and how much of the
Payments shall be eliminated or reduced (as long as after such election the aggregate present value of the Payments equals the Reduced Amount) and shall advise the Company in writing of his or her election within 10 days of receipt of notice. If no
such election is made by the Participant within such 10-day period, then the Company may elect which and how much of the Payments shall be eliminated or reduced (as long as after such election the aggregate present value of the Payments equals the
Reduced Amount) and shall notify the Participant promptly of such election. For purposes of this Article 18, present value shall be determined in accordance with section 280G(d)(4) of the Code. All determinations made by the Company under this
Article 18 shall be made within 60 days of the date when a Payment becomes payable or transferable and would otherwise be nondeductible to the Company. As promptly as practicable following such determination and the elections hereunder, the Company
shall pay or transfer to or for the benefit of the Participant such amounts as are then due to him or her under the Plan and shall promptly pay or transfer to or for the benefit of the Participant in the future such amounts as become due to him or
her under the Plan. 
 18.4 Related Corporations. For purposes of this Article 18, the term “Company” shall include
affiliated corporations in accordance with section 280G(d)(5) of the Code. 
 ARTICLE 19 DEFINITIONS. 

19.1 “Affiliate” means any entity other than a Subsidiary, if the Company and/or one or more Subsidiaries own not less than
50% of such entity. 
 19.2 “Applicable Law” means any and all laws of whatever jurisdiction, within or without the United
States, and the rules of any stock exchange or quotation system on which Common Shares are listed or 

  
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quoted, applicable to the taking or refraining from taking of any action under the Plan, including the administration of the Plan and the issuance or transfer of Awards. 

19.3 “Award” means any award of an Option, an SAR, a Restricted Share or a Stock Unit under the Plan. 

19.4 “Board” means the Company’s Board of Directors, as constituted from time to time. 

19.5 “Cause” means (a) acts or omissions constituting gross negligence, recklessness or willful misconduct with respect
to the Participant’s obligations or otherwise relating to the business of the Company; (b) the Participant’s material breach of a written agreement between the Participant and the Company (or a Parent, Subsidiary or Affiliate);
(c) conviction or entry of a plea of nolo contendere for fraud, misappropriation or embezzlement, or any felony or crime of moral turpitude; (d) dishonesty or involvement in any conduct that adversely affects the Company’s name or
public image or is otherwise detrimental to the Company’s business interests; (e) willful neglect of duties; or (f) unauthorized use or disclosure of the confidential information or trade secrets of the Company, which use or
disclosure causes material harm to the Company. The foregoing, however, shall not be deemed an exclusive list of all acts or omissions that the Company (or the Parent, Subsidiary or Affiliate employing the Participant) may consider as grounds for
the discharge of the Participant without Cause. The Committee shall be entitled to determine “Cause” based on the Committee’s good faith belief. 

19.6 “Change in Control” means: 

(a) The consummation of a merger or consolidation of the Company with or into another entity or any other corporate reorganization, if persons
who were not shareholders of the Company immediately prior to such merger, consolidation or other reorganization own immediately after such merger, consolidation or other reorganization 50% or more of the voting power of the outstanding securities
of each of (i) the continuing or surviving entity and (ii) any direct or indirect parent corporation of such continuing or surviving entity; 

(b) The sale, transfer or other disposition of all or substantially all of the Company’s assets; 

(c) A change in the composition of the Board over a period of thirty-six (36) months or less such that a majority of the Board members
(rounded up to the next whole number) ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals who are Continuing Directors; 

(d) Any transaction as a result of which the direct or indirect acquisition by any person or related group of persons (other than an
acquisition from or by the Company or by a Company-sponsored employee benefit plan or by a person that directly or indirectly controls, is controlled by, or is under common control with, the Company) of beneficial ownership (within the meaning of
Rule 13d-3 of the Exchange Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities pursuant to a tender or exchange offer made directly to the Company’s
shareholders which a majority of the Continuing Directors who are not affiliated with the offeror do not recommend such shareholders accept; or 

(e) A Divestiture; provided that a Divestiture shall be a Change in Control only to the extent that the Board determines that such Divestiture
constitutes a Change in Control, and then only for those Participants for whom the Board has expressly resolved that such Divestiture constitutes a Change in Control for such Participants. In making such determination, the Board need not adopt the
same rules for each Award or Participant. 
 A transaction shall not constitute a Change in Control if its sole purpose is to change the state of the
Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction. The Committee shall determine whether an
event shall be treated as a Change of Control. 

  
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 19.7 “Code” means the Internal Revenue Code of 1986, as amended. 

19.8 “Committee” means a committee of the Board, as described in Article 2. 

19.9 “Common Share” means one share of the common stock of the Company. 

19.10 “Company” means Overland Storage, Inc., a California corporation. 

19.11 “Consultant” means a consultant or adviser who provides bona fide services to the Company, a Parent, a Subsidiary or an
Affiliate as an independent contractor. 
 19.12 “Continuing Directors” means members of the Board who either (i) have
been Board members continuously for a period of at least thirty-six (36) months or (ii) have been Board members for less than thirty-six (36) months and were elected or nominated for election as Board members by at least a majority of
the Board members described in clause (i) who were still in office at the time such election or nomination was approved by the Board. 

19.13 “Delay In Payments to Specified Employees” means if a Participant is a “specified employee” (as defined under
Code Section 409A) on separation from service, to the extent any Award or arrangement needs to comply with Code Section 409A, then certain payments may be delayed and not be paid during the first six months following the separation from
service but will instead be paid on the earlier of the first business day of the 7th month following the separation from service, or the Participant’s death. 

19.14 “Divestiture” means a transaction or event where the Company or a Parent, Subsidiary or Affiliate sells or otherwise
transfers its equity securities to a person or entity other than the Company or a Parent, Subsidiary or Affiliate, or leases, exchanges or transfers all or any portion of its assets to such a person or entity, where the Board specifies that such
transaction or event constitutes a “Divestiture.” 
 19.15 “Domestic Relations Order” means a “domestic
relations order” as defined in, and otherwise meeting the requirements of, section 414(p) of the Code, except that reference to a “plan” in that definition shall be to the Plan. 

19.16 “Director” means a member of the Board of Directors of the Company. 

19.17 “Effective Date” means the earliest date on which the Plan has been adopted by the Board and approved by the
Company’s shareholders. 
 19.18 “Employee” means a common law employee of the Company, a Parent, a Subsidiary or an
Affiliate. Notwithstanding the foregoing, individuals who are classified by the Company or a Parent, Subsidiary or Affiliate as (i) leased from or otherwise employed by a third party, (ii) independent contractors, or
(iii) intermittent or temporary workers, shall not be deemed Employees. The Company’s or a Parent’s, Subsidiary’s or Affiliate’s classification of an individual as an “Employee” (or as not an “Employee”)
for purposes of the Plan shall not be altered retroactively even if that classification is changed retroactively for another purpose as a result of an audit, litigation or otherwise. A Participant shall not cease to be an Employee due to transfers
between locations of the Company, or among the Company and a Parent, Subsidiary or Affiliate, or to any successor to the Company or a Parent, Subsidiary or Affiliate that assumes an Optionee’s Options under Section 11.3. Neither service as
a Director nor receipt of a director’s fee shall be sufficient to make a Director an “Employee.” 
 19.19 “Exchange
Act” means the Securities Exchange Act of 1934, as amended. 
 19.20 “Exercise Price,” in the case of an Option,
means the amount for which one Common Share may be purchased upon exercise of such Option, as specified in the applicable Stock Option Agreement. “Exercise Price,” in the case of an SAR, means an amount, as specified in the applicable SAR
Agreement, which is subtracted from the Fair Market Value of one Common Share in determining the amount payable upon exercise of such SAR. 

  
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 19.21 “Fair Market Value” means the market price of Common Shares, determined by
the Committee in good faith on such basis as it deems appropriate. Whenever possible, the determination of Fair Market Value by the Committee shall be based on the prices reported in The Wall Street Journal. Such determination shall be conclusive
and binding on all persons. 
 19.22 “Involuntary Termination” means the termination of the Participant’s Service by
reason of: 
 (a) The involuntary discharge of the Participant by the Company (or the Parent, Subsidiary or Affiliate employing him or her)
for reasons other than Cause; or 
 (b) The voluntary resignation of the Participant following (i) a material adverse change in his or
her title, stature, authority or responsibilities with the Company (or the Parent, Subsidiary or Affiliate employing him or her), (ii) a material reduction in his or her base salary or (iii) receipt of notice that his or her principal
workplace will be relocated by more than 90 miles. 
 19.23 “ISO” means an incentive stock option described in section
422(b) of the Code. 
 19.24 “NSO” means a stock option not described in sections 422 or 423 of the Code. 

19.25 “Objectively Determinable Performance Condition” shall mean a performance condition (i) that is established
(A) at the time an Award is granted or (B) no later than the earlier of (1) 90 days after the beginning of the period of Service to which it relates, or (2) before the elapse of 25% of the period of Service to which it relates,
(ii) that is uncertain of achievement at the time it is established, and (iii) the achievement of which is determinable by a third party with knowledge of the relevant facts. Examples of measures that may be used in Objectively
Determinable Performance Conditions include net order dollars, net profit dollars, net profit growth, net revenue dollars, profit/loss or profit margin, operating profit, net operating profit, operating margin, working capital, sales or revenue,
revenue growth, gross margin, cost of goods sold, individual performance, cash, accounts receivables, write-offs, cash flow, liquidity, income, net income, operating income, net operating income, earnings, earnings before interest, taxes,
depreciation and/or amortization, earnings per share, growth in earnings per share, price/earnings ratio, debt or debt-to-equity, economic value added, assets, return on assets, return on equity, stock price, shareholders’ equity, total
shareholder return, including stand-alone or relative to a stock market or peer group index, return on capital, return on assets or net assets, return on investment, return on operating revenue, any other financial objectives, objective customer
satisfaction indicators and efficiency measures, operations, research or related milestones, intellectual property (e.g., patents), product development, site, plant or building development, internal controls, policies and procedures, information
technology, human resources, corporate governance, business development, market share, strategic alliances, licensing and partnering, contract awards or backlog, expenses, overhead or other expense reduction, compliance programs, legal matters,
accounting and reporting, credit rating, strategic plan development and implementation, mergers and acquisitions and divestitures, financings, management, improvement in workforce diversity, or any similar criteria, each with respect to the Company
and/or a Parent, Subsidiary or Affiliate, and/or an individual business unit. 
 19.26 “Officer” means an officer of the
Company as defined in Rule 16a-1 adopted under the Exchange Act. 
 19.27 “Option” means an ISO or NSO granted under the
Plan and entitling the holder to purchase Common Shares. 
 19.28 “Optionee” means an individual or estate who holds an
Option or SAR. 
 19.29 “Outside Director” means a member of the Board who is not an Employee. 

19.30 “Parent” means any corporation (other than the Company) in an unbroken chain of corporations ending with the Company, if
each of the corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such 

  
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chain. A corporation that attains the status of a Parent on a date after the adoption of the Plan shall be considered a Parent commencing as of such date. 

19.31 “Participant” means (i) a person to whom an Award has been granted, including a holder of a Substitute Award; or
(ii) a person to whom an Award has been transferred in accordance with the applicable requirements of Sections 5.6, 8.7, 9.5, or 10.8 

19.32 “Plan” means this Overland Storage, Inc. 2003 Equity Incentive Plan, as amended from time to time. 

19.33 “Prior Plans” means the Company’s 1995 Stock Option Plan, 1997 Executive Stock Option Plan, 2000 Stock Option Plan,
and 2001 Supplemental Stock Option Plan, each as in effect on the Effective Date. 
 19.34 “Restricted Share” means a Common
Share awarded pursuant to Article 9 of the Plan. 
 19.35 “Restricted Stock Agreement” means the agreement between the
Company and the recipient of a Restricted Share that contains the terms, conditions and restrictions pertaining to such Restricted Share. 

19.36 “SAR” means a stock appreciation right granted under the Plan. 

19.37 “SAR Agreement” means the agreement between the Company and an Optionee that contains the terms, conditions and
restrictions pertaining to his or her SAR. 
 19.38 “Service” means service as an Employee, Outside Director or Consultant.
Unless otherwise determined by the Committee or otherwise provided in the Plan or Award agreement, Service shall continue notwithstanding a change in status from an Employee, Consultant or Outside Director to another such status. An event that
causes a Parent, Subsidiary or Affiliate to cease having status as a Parent, Subsidiary or Affiliate shall be deemed to discontinue the Service of that entity’s Employees, Outside Directors and Consultants unless such persons retain the status
of Employee, Outside Director or Consultant of the Company or a remaining Parent, Subsidiary or Affiliate. 
 19.39 “Stock Option
Agreement” means the agreement between the Company and an Optionee that contains the terms, conditions and restrictions pertaining to his or her Option. 

19.40 “Stock Unit” means a bookkeeping entry representing the equivalent of one Common Share, as awarded under the Plan. 

19.41 “Stock Unit Agreement” means the agreement between the Company and the recipient of Stock Units that contains the terms,
conditions and restrictions pertaining to such Stock Units. 
 19.42 “Subsidiary” means any corporation (other than the
Company) in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock
in one of the other corporations in such chain. A corporation that attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date. 

19.43 “Substitute Award” means a Substitute Option, Substitute SAR, Substitute Restricted Share or Substitute Stock Unit
granted in accordance with the terms of the Plan. 
 19.44 “Substitute Option” means an Option granted in substitution for,
or upon the conversion of, an option granted by another entity to purchase equity securities in the granting entity. 

  
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 19.45 “Substitute SAR” means a SAR granted in substitution for, or upon the
conversion of, a stock appreciation right granted by another entity with respect to equity securities in the granting entity. 
 19.46
“Substitute Restricted Share” means a Restricted Share granted in substitution for a restricted share granted by another entity with respect to equity securities in the granting entity. 

19.47 “Substitute Stock Unit” means a Stock Unit granted in substitution for, or upon the conversion of, a stock unit granted
by another entity with respect to equity securities in the granting entity. 
 19.48 “Ten Percent Shareholder” means any
person who, directly or by attribution under Section 424(d) of the Code, owns stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of any Parent or Subsidiary on the date
of Option grant. 
 ARTICLE 20 EXECUTION. 

To record the adoption of the Plan by the Board, approval by the Company’s shareholders of the Plan effective on November 17, 2003,
approval of the amendment adopted by the Company’s shareholders effective on November 15, 2004, and approval by the Board of this amendment and restatement of the Plan on September 22, 2007 and approval by the Company’s
shareholders of such amendment and restatement on November 13, 2007, the Company has caused its duly authorized officer to execute this document in the name of the Company. 

 

			
	OVERLAND STORAGE, INC.
		
	By:		 /s/ Vernon A. LoForti 

	Name:		Vernon A. LoForti
	Title:		President and Chief Executive Officer



  
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 Overland Storage, Inc. 

2003 Equity Incentive Plan 

PLAN HISTORY 
  

			
	 Date
	  	 Action

	September 6, 2003	  	Adopted by Board of Directors, subject to shareholder approval.
		
	November 17, 2003	  	Approved by Shareholders. Effective Date of Plan.
		
	September 29, 2004	  	Amendments approved by Board of Directors, subject to shareholder approval: (i) increase in Common Shares reserved for issuance over the term of the Plan by 1,000,000 shares; (ii) addition of a requirement that any Common Shares to
which Restricted Shares or Stock Units pertain shall be counted against the reserve as two (2) Common Shares for every one (1) Common Share subject to such Awards; and (iii) deletion of the limitation formerly set forth in Section 3.3 limiting the
number of Restricted Shares and Stock Units.
		
	November 15, 2004	  	Amendments approved by shareholders. Effective date of amendments.
		
	September 22, 2007	  	Amended and Restated Plan approved by Board of Directors, subject to shareholder approval. Amendments: (i) increase in Common Shares reserved for issuance over the term of the Plan by 1, 300,000 shares; (ii) shorten maximum Option
and SAR term life to 6 years from date of grant; (iii) cancel certain Options with the Common Shares underlying such Options not returning to the Plan for purposes of future Awards; (iv) include additional examples of qualifying performance
criteria; and (v) make certain other administrative amendments and clarifications.
		
	November 13, 2007	  	Amended and Restated Plan approved by shareholders.


  
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 EXHIBIT A 

CANCELLED OPTIONS 
  

															
	 	  	Option	 	  	Number	 	  	Per Share	 	  	 
	 Optionee Name
	  	Grant Date	 	  	of Shares	 	  	Exercise Price	 	  	 Plan Name

	 Robert Degan
	  	 	1/20/2003	  	  	 	22,000	  	  	$	14.75	  	  	2000 Stock Option Plan
		  	 	3/3/2005	  	  	 	12,000	  	  	$	14.67	  	  	2003 Equity Incentive Plan
	 Robert Farkaly
	  	 	6/25/2003	  	  	 	5,000	  	  	$	20.25	  	  	2000 Stock Option Plan
		  	 	11/18/2004	  	  	 	5,000	  	  	$	13.98	  	  	2003 Equity Incentive Plan
	 Mike Gawarecki
	  	 	4/21/2000	  	  	 	20,000	  	  	$	10.00	  	  	1997 Stock Option Plan
		  	 	7/10/2002	  	  	 	52,500	  	  	$	13.50	  	  	2000 Stock Option Plan
		  	 	11/17/2003	  	  	 	10,000	  	  	$	19.33	  	  	2003 Equity Incentive Plan
		  	 	11/15/2004	  	  	 	31,400	  	  	$	14.29	  	  	2003 Equity Incentive Plan
	 Kurt Kalbfleisch
	  	 	4/21/2000	  	  	 	8,000	  	  	$	10.00	  	  	1995 Stock Option Plan
		  	 	7/2/2003	  	  	 	10,000	  	  	$	20.13	  	  	1995 Stock Option Plan
		  	 	11/18/2004	  	  	 	3,500	  	  	$	13.98	  	  	2003 Equity Incentive Plan
	 Vernon LoForti
	  	 	4/21/2000	  	  	 	20,000	  	  	$	10.00	  	  	1997 Stock Option Plan
		  	 	7/10/2002	  	  	 	60,000	  	  	$	13.50	  	  	2000 Stock Option Plan
		  	 	11/17/2003	  	  	 	10,000	  	  	$	19.33	  	  	2003 Equity Incentive Plan
		  	 	11/15/2004	  	  	 	29,700	  	  	$	14.29	  	  	2003 Equity Incentive Plan
	 Scott McClendon
	  	 	1/20/2003	  	  	 	11,000	  	  	$	14.75	  	  	2000 Stock Option Plan
		  	 	11/17/2003	  	  	 	18,000	  	  	$	19.33	  	  	2003 Equity Incentive Plan
		  	 	11/15/2004	  	  	 	18,000	  	  	$	14.29	  	  	2003 Equity Incentive Plan
	 Michael Norkus
	  	 	8/11/2004	  	  	 	4,500	  	  	$	11.05	  	  	2003 Equity Incentive Plan
		  	 	11/15/2004	  	  	 	18,000	  	  	$	14.29	  	  	2003 Equity Incentive Plan
	 Robert Scroop
	  	 	7/10/2002	  	  	 	60,000	  	  	$	13.50	  	  	2000 Stock Option Plan
		  	 	11/17/2003	  	  	 	10,000	  	  	$	19.33	  	  	2003 Equity Incentive Plan
		  	 	11/15/2004	  	  	 	29,700	  	  	$	14.29	  	  	2003 Equity Incentive Plan
	 Total Shares Cancelled
	  				  	 	468,300	  	  				  	


  
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