BIOCRYST PHARMACEUTICALS, INC. STOCK INCENTIVE PLAN



 BIOCRYST PHARMACEUTICALS, INC. 

STOCK INCENTIVE PLAN 
 (AS AMENDED AND RESTATED MARCH 29, 2012) 
 ARTICLE ONE 

GENERAL PROVISIONS 

I.    PURPOSES OF THE PLAN 
 A.  This Stock Incentive Plan (the “Plan”), formerly the “BioCryst Pharmaceuticals, Inc. 1991 Stock Option Plan,” is intended to promote the interests of BioCryst
Pharmaceuticals, Inc., a Delaware corporation (the “Company”), by providing a method whereby (i) key employees (including officers and directors) of the Company (or its parent or subsidiary corporations) who are responsible for the
management, growth and financial success of the Company (or any parent or subsidiary corporations), (ii) non-employee members of the board of directors of the Company (the “Board”) (or of any parent or subsidiary corporations) and
(iii) consultants and other independent contractors who provide valuable services to the Company (or any parent or subsidiary corporations) may be offered the opportunity to acquire a proprietary interest, or otherwise increase their
proprietary interest, in the Company as an incentive for them to remain in the service of the Company (or any parent or subsidiary corporations). 
 B.  For purposes of the Plan, the following provisions shall be applicable in determining the parent and subsidiary corporations of the Company: 

(i)  Any corporation (other than the Company) in an unbroken chain of corporations ending with the Company shall
be considered to be a parent corporation of the Company, provided each such corporation in the unbroken chain (other than the Company) owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations in such chain. 

(ii)  Each corporation (other than the Company) in an unbroken chain of corporations beginning with the Company
shall be considered to be a subsidiary of the Company, provided each such corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more of the
total combined voting power of all classes of stock in one of the other corporations in such chain. 
 C.  The Plan, as
hereby amended and restated, was approved and adopted by the Board on March 29, 2012 in order to increase by 1,700,000 the number of shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”), that may
be issued pursuant to the Plan and to increase the maximum number of shares of Common Stock for which any one individual participating in the Plan may receive options, separately exercisable stock appreciation rights and direct stock issuances to
1,500,000 in any calendar year. The Board’s adoption of these amendments is subject to approval by the Company’s stockholders at the Company’s 2012 Annual Stockholders Meeting. 
 II.    STRUCTURE OF THE PLAN 
 A.  The Plan
shall be divided into three separate equity programs: 
 (i)  the Discretionary Option Grant Program
specified in Article Two, pursuant to which eligible persons may, at the discretion of the Plan Administrator, be granted options to purchase shares of Common Stock, 

(ii)  the Stock Issuance Program specified in Article Three, pursuant to which eligible persons may, at the
discretion of the Plan Administrator, be issued shares of Common Stock directly, either through immediate purchase of such shares or as compensation for services rendered to the Company (or any parent or subsidiary), and 

(iii)  the Automatic Option Grant Program specified in Article Four, pursuant to which non-employee members of
the Board will automatically receive option grants to purchase shares of Common Stock. 

  
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 B.  Unless the context clearly indicates otherwise, the provisions of Articles One
and Five of the Plan shall apply to all equity programs under the Plan and shall accordingly govern the interests of all individuals under the Plan. 
 III.    ADMINISTRATION OF THE PLAN 
 A.  A
committee of two (2) or more non-employee Board members appointed by the Board (the “Primary Committee”) shall have sole and exclusive authority to administer the Discretionary Option Grant and Stock Issuance Programs with respect to
Section 16 Insiders. For purposes of this Section, a Section 16 Insider shall mean an officer or director of the Company subject to the short-swing profit liabilities of Section 16 of the Securities Exchange Act of 1934 (the
“1934 Act”). 
 B.  Administration of the Discretionary Option Grant and Stock Issuance Programs with respect
to all other persons eligible to participate in the programs may, at the Board’s discretion, be vested in the Primary Committee, another committee of one (1) or more Board members appointed by the Board (the “Secondary
Committee”), or the Board may retain the power to administer those programs with respect to all such persons. 

C.  Members of the Primary Committee and any Secondary Committee shall serve for such period of time as the Board may determine
and shall be subject to removal by the Board at any time. 
 D.  Each Plan Administrator (whether the Primary
Committee, the Board or the Secondary Committee) shall, within the scope of its administrative functions under the Plan, have full power and authority (subject to the express provisions of the Plan) to establish such rules and regulations as it may
deem appropriate for the proper administration of the Discretionary Option Grant and Stock Issuance Programs and to make such determinations under, and issue interpretations of, the provisions of such programs and any outstanding options or stock
issuances thereunder as it may deem necessary or advisable. Decisions of the Plan Administrator within the scope of its administrative authority under the Plan shall be final and binding on all parties. 

E.  Service on the Primary Committee or the Secondary Committee shall constitute service as a Board member, and members of each
such committee shall accordingly be entitled to full indemnification and reimbursement as Board members for their service on such committee. No member of the Primary Committee or Secondary Committee shall be liable for any act of omission made in
good faith with respect to the Plan or any option grants or stock issuances under the Plan. 
 F.  Administration of
the Automatic Option Grant Program shall be self-executing in accordance with the express terms and conditions of Article Four, and no Plan Administrator shall exercise any discretionary functions under that program. 

IV.    ELIGIBILITY 
 A.  The persons eligible to participate in the Discretionary Option Grant and Stock Issuance Programs shall be limited to the following: 

(i)  officers and other key employees of the Company (or its parent or subsidiary corporations) who render
services which contribute to the management, growth and financial success of the Company (or its parent or subsidiary corporations); 
 (ii)  individuals who are consultants or independent advisors and who provide valuable services to the Company (or its parent or subsidiary corporations); and 

(iii)  non-employee members of the Board (or of the board of directors of parent or subsidiary corporations).

 B.  Only Board members who are not employees of the Company (or any parent or subsidiary) shall be eligible to
receive automatic option grants pursuant to the Automatic Option Grant Program specified in Article Four. 

  
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 C.  The Plan Administrator shall, within the scope of its administrative
jurisdiction under the Plan, have full power and authority to determine (i) whether to grant options in accordance with the Discretionary Option Grant Program or to effect stock issuances in accordance with the Stock Issuance Program,
(ii) which eligible persons are to receive option grants under the Discretionary Option Grant Program, the time or times when such option grants are to be made, the number of shares to be covered by each such grant, the status of the granted
option as either an incentive stock option (“Incentive Option”) which satisfies the requirements of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”) or a non-statutory option not intended to meet
such requirements, the time or times when each such option is to become exercisable, the vesting schedule (if any) applicable to the option shares and the maximum term for which such option is to remain outstanding, and (iii) which eligible
persons are to receive stock issuances under the Stock Issuance Program, the time or times when such issuances are to be made, the number of shares to be issued to each participant, the vesting schedule (if any) applicable to the shares and the
consideration for such shares. 
 V.    STOCK SUBJECT TO THE PLAN 

A.  Shares of the Company’s Common Stock shall be available for issuance under the Plan and shall be drawn from either the
Company’s authorized but unissued shares of Common Stock or from reacquired shares of Common Stock, including shares repurchased by the Company on the open market. The maximum number of shares of Common Stock which may be issued over the term
of the Plan, as amended and restated, shall not exceed 15,640,000 shares, subject to adjustment from time to time in accordance with the provisions of this Section V. The total number of shares available under the Plan, as amended and restated,
as of March 29, 2012 is 10,866,631. This amount consists of 8,904,698 shares reserved for awards already issued, 261,933 shares of Common Stock available for future issuance under the Plan, and the increase of 1,700,000 shares of Common Stock
authorized by the Board, subject to approval by the Company’s stockholders at the 2012 Annual Stockholders Meeting. 

B.  In no event shall the number of shares of Common Stock for which any one individual participating in the Plan may receive
options, separately exercisable stock appreciation rights and direct stock issuances exceed 1,500,000 shares of Common Stock in the aggregate in any calendar year. For purposes of such limitation, however, no stock options granted prior to the date
the Common Stock was first registered under Section 12 of the 1934 Act (the “Section 12(g) Registration Date”) shall be taken into account. 
 C.  Should an outstanding option under this Plan expire or terminate for any reason prior to exercise in full, the shares subject to the portion of the option not so exercised shall be available
for subsequent option grant or direct stock issuances under the Plan. Unvested shares issued under the Plan and subsequently repurchased by the Company, at the original issue price paid per share, pursuant to the Company’s repurchase rights
under the Plan, or shares underlying terminated share right awards, shall be added back to the number of shares of Common Stock reserved for issuance under the Plan and shall accordingly be available for reissuance through one or more subsequent
option grants or direct stock issuances under the Plan. However, should the exercise price of an outstanding option under the Plan be paid with shares of Common Stock or should shares of Common Stock otherwise issuable under the Plan be withheld by
the Company in satisfaction of the withholding taxes incurred in connection with the exercise of an outstanding option or the vesting of a direct stock issuance under the Plan, then the number of shares of Common Stock available for issuance under
the Plan shall be reduced by the gross number of shares for which the option is exercised or which vest under the direct stock issuance, and not by the net number of shares of Common Stock actually issued to the holder of such option or stock
issuance. Shares of Common Stock subject to any option surrendered for an appreciation distribution under Section IV of Article Two or Section IV of Article Four shall not be available for subsequent issuance under the Plan. 

D.  In the event any change is made to the Common Stock issuable under the Plan by reason of any stock split, stock dividend,
recapitalization, combination of shares, exchange of shares or other change affecting the outstanding Common Stock as a class without receipt of consideration, then appropriate adjustments shall be made to (i) the maximum number and/or class of
securities issuable under the Plan, (ii) the maximum number and/or class of securities for which any one individual participating in the Plan may be granted stock options, separately exercisable stock appreciation rights, and direct stock
issuances under the Plan from and after the Section 12(g) Registration Date, (iii) the number and/or class of securities and price per share in effect under 

  
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each outstanding option under the Plan, (iv) the number and/or class of securities in effect under each outstanding direct stock issuance under the Plan, and (v) the number and/or class
of securities for which automatic option grants are subsequently to be made per non-employee Board member under the Automatic Option Grant Program. The purpose of such adjustments shall be to preclude the enlargement or dilution of rights and
benefits under the Plan. 
 E.  The fair market value per share of Common Stock on any relevant date under the Plan
shall be determined in accordance with the following provisions: 
 (i)  If the Common Stock is not at
the time listed or admitted to trading on any national securities exchange but is traded in the over-the-counter market, the fair market value shall be the mean between the highest bid and lowest asked prices (or, if such information is available,
the closing selling price) per share of Common Stock on the date in question in the over-the-counter market, as such prices are reported by the National Association of Securities Dealers through the Nasdaq National Market, the Nasdaq Global Select
Market or any successor system. If there are no reported bid and asked prices (or closing selling price) for the Common Stock on the date in question, then the mean between the highest bid price and lowest asked price (or the closing selling price)
on the last preceding date for which such quotations exist shall be determinative of fair market value. 

(ii)  If the Common Stock is at the time listed or admitted to trading on any national securities exchange, then
the fair market value shall be the closing selling price per share of Common Stock on the date in question on the securities exchange determined by the Plan Administrator to be the primary market for the Common Stock, as such price is officially
quoted in the composite tape of transactions on such exchange. If there is no reported sale of Common Stock on the exchange on the date in question, then the fair market value shall be the closing selling price on the exchange on the last preceding
date for which such quotation exists. 
 (iii)  If the Common Stock is at the time neither listed nor
admitted to trading on any securities exchange nor traded in the over-the-counter market, then the fair market value shall be determined by the Plan Administrator after taking into account such factors as the Plan Administrator shall deem
appropriate. 
 ARTICLE TWO 
 DISCRETIONARY OPTION GRANT PROGRAM 
 I.    TERMS AND
CONDITIONS OF OPTIONS 
 Options granted pursuant to this Article Two shall be authorized by action of the Plan Administrator
and may, at the Plan Administrator’s discretion, be either Incentive Options or non-statutory options. Individuals who are not Employees may only be granted non-statutory options under this Article Two. Each option granted shall be evidenced by
one or more instruments in the form approved by the Plan Administrator. Each such instrument shall, however, comply with the terms and conditions specified below, and each instrument evidencing an Incentive Option shall, in addition, be subject to
the applicable provisions of Section II of this Article Two. 
 A.  Option Price. 

1.  The option price per share shall be fixed by the Plan Administrator. In no event, however, shall the option
price per share be less than one hundred percent (100%) of the fair market value per share of Common Stock on the date of the option grant. 
 2.  The option price shall become immediately due upon exercise of the option and shall, subject to the provisions of Section IV of this Article Two and the instrument evidencing the grant, be
payable as follows: 
 (i)  full payment in cash or check drawn to the Company’s order;

 (ii)  full payment in shares of Common Stock held by the optionee for the requisite period necessary
to avoid a charge to the Company’s earnings for financial reporting purposes and valued at fair market value on the Exercise Date (as such term is defined below); 

  
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 (iii)  full payment through a combination of shares of Common
Stock held by the optionee for the requisite period necessary to avoid a charge to the Company’s earnings for financial reporting purposes and valued at fair market value on the Exercise Date and cash or cash equivalent; or 

(iv)  full payment through a broker-dealer sale and remittance procedure pursuant to which the optionee
(I) shall provide irrevocable written instructions to a designated brokerage firm to effect the immediate sale of the purchased shares and remit to the Company, out of the sale proceeds available on the settlement date, sufficient funds to
cover the aggregate option price payable for the purchased shares plus all applicable Federal and State income and employment taxes required to be withheld by the Company in connection with such purchase and (II) shall provide written
directives to the Company to deliver the certificates for the purchased shares directly to such brokerage firm in order to complete the sale transaction. 
 For purposes of this subparagraph 2, the Exercise Date shall be the date on which written notice of the option exercise is delivered to the Company. Except to the extent the sale and remittance procedure
is utilized in connection with the exercise of the option, payment of the option price for the purchased shares must accompany such notice. 
 B.  Term and Exercise of Options. 
 Each option granted
under this Article Two shall be exercisable at such time or times, during such period, and for such number of shares as shall be determined by the Plan Administrator and set forth in the instrument evidencing the option grant. No such option,
however, shall have a maximum term in excess of ten (10) years from the grant date. During the lifetime of the optionee, the option, together with any stock appreciation rights pertaining to such option, shall be exercisable only by the
optionee and shall not be assignable or transferable by the optionee except for a transfer of the option by will or by the laws of descent and distribution following the optionee’s death. However, the Plan Administrator shall have the
discretion to provide that a non-statutory option may, in connection with the optionee’s estate plan, be assigned in whole or in part during the optionee’s lifetime either as (i) as a gift to one or more members of optionee’s
immediate family, to a trust in which optionee and/or one or more such family members hold more than fifty percent (50%) of the beneficial interest or an entity in which more than fifty percent (50%) of the voting interests are owned by
optionee and/or one or more such family members, or (ii) pursuant to a domestic relations order. The assigned portion shall be exercisable only by the person or persons who acquire a proprietary interest in the option pursuant to such
assignment. The terms applicable to the assigned portion shall be the same as those in effect for this option immediately prior to such assignment and shall be set forth in such documents issued to the assignee as the Plan Administrator may deem
appropriate. 
 C.  Termination of Service. 

1.  Except to the extent otherwise provided pursuant to Section V of this Article Two, the following provisions
shall govern the exercise period applicable to any options held by the optionee at the time of cessation of Service or death. 
 (i)  Should the optionee cease to remain in Service for any reason other than death or permanent disability, then the period for which each outstanding option held by such optionee is to remain
exercisable shall be limited to the three (3)-month period following the date of such cessation of Service. However, should optionee die during the three (3)-month period following his or her cessation of Service, the personal representative of the
optionee’s estate or the person or persons to whom the option is transferred pursuant to the optionee’s will or in accordance with the laws of descent and distribution shall have a twelve (12)-month period following the date of the
optionee’s death during which to exercise such option. 
 (ii)  In the event such Service
terminates by reason of permanent disability (as defined in Section 22(e)(3) of the Internal Revenue Code), then the period for which each outstanding option held by the optionee is to remain exercisable shall be limited to the twelve
(12)-month period following the date of such cessation of Service. 

  
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 (iii)  Should the optionee, after completing five (5) full
years of Service, die while in Service, then the exercisability of each of his or her outstanding options shall automatically accelerate so that each such option shall become fully exercisable with respect to the total number of shares of Common
Stock at the time subject to such option and may be exercised for all or any portion of such shares. The personal representative of the optionee’s estate or the person or persons to whom the option is transferred pursuant to the optionee’s
will or in accordance with the laws of descent and distribution shall have a twelve (12)-month period following the date of the optionee’s death during which to exercise such option. 

(iv)  In the event such Service terminates by reason of death prior to the optionee obtaining five (5) full
years of Service, then the period for which each outstanding vested option held by the optionee at the time of death shall be exercisable by the optionee’s estate or the person or persons to whom the option is transferred pursuant to the
optionee’s will shall be limited to the twelve (12)-month period following the date of the optionee’s death. 
 (v)  Under no circumstances, however, shall any such option be exercisable after the specified expiration date of the option term. 

(vi)  Each such option shall, during such limited exercise period, be exercisable for any or all of the shares
for which the option is exercisable on the date of the optionee’s cessation of Service. Upon the expiration of such limited exercise period or (if earlier) upon the expiration of the option term, the option shall terminate and cease to be
exercisable. However, each outstanding option shall immediately terminate and cease to remain outstanding, at the time of the optionee’s cessation of Service, with respect to any shares for which the option is not otherwise at that time
exercisable or in which the optionee is not otherwise vested. 
 (vii)  Should (i) the
optionee’s Service be terminated for misconduct (including, but not limited to, any act of dishonesty, willful misconduct, fraud or embezzlement) or (ii) the optionee make any unauthorized use or disclosure of confidential information or
trade secrets of the Company or its parent or subsidiary corporations, then in any such event all outstanding options held by the optionee under this Article Two shall terminate immediately and cease to be exercisable. 

2.  The Plan Administrator shall have complete discretion, exercisable either at the time the option is granted
or at any time while the option remains outstanding, to permit one or more options held by the optionee under this Article Two to be exercised, during the limited period of exercisability provided under subparagraph 1 above, not only with respect to
the number of shares for which each such option is exercisable at the time of the optionee’s cessation of Service but also with respect to one or more subsequent installments of purchasable shares for which the option would otherwise have
become exercisable had such cessation of Service not occurred. 
 3.  For purposes of the foregoing
provisions of this Section I.C (and for all other purposes under the Plan): 
 (i)  The optionee shall
be deemed to remain in the Service of the Company for so long as such individual renders services on a periodic basis to the Company (or any parent or subsidiary corporation) in the capacity of an Employee, a non-employee member of the board
of directors or an independent consultant or advisor, unless the agreement evidencing the applicable option grant specifically states otherwise. 
 (ii)  The optionee shall be considered to be an Employee for so long as such individual remains in the employ of the Company or one or more of its parent or subsidiary corporations,
subject to the control and direction of the employer entity not only as to the work to be performed but also as to the manner and method of performance. 
 D.  Stockholder Rights. 
 An optionee shall have no
stockholder rights with respect to any shares covered by the option until such individual shall have exercised the option and paid the option price for the purchased shares. 

  
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 E.  Repurchase Rights. 

The shares of Common Stock acquired upon the exercise of options granted under this Article Two may be subject to repurchase by the
Company in accordance with the following provisions: 
 1.  The Plan Administrator shall have the
discretion to grant options which are exercisable for unvested shares of Common Stock under this Article Two. Should the optionee cease Service while holding such unvested shares, the Company shall have the right to repurchase any or all those
unvested shares at the option price paid per share. The terms and conditions 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 Plan Administrator and set forth in the instrument evidencing such repurchase right. 

2.  All of the Company’s outstanding repurchase rights shall automatically terminate, and all shares
subject to such terminated rights shall immediately vest in full, upon the occurrence of any Corporate Transaction under Section III of this Article Two, except to the extent: (i) any such repurchase right is expressly assigned to the successor
corporation (or parent thereof) in connection with the Corporate Transaction or (ii) such termination is precluded by other limitations imposed by the Plan Administrator at the time the repurchase right is issued. 

3.  The Plan Administrator shall have the discretionary authority, exercisable either before or after the
optionee’s cessation of Service, to cancel the Company’s outstanding repurchase rights with respect to one or more shares purchased or purchasable by the optionee under this Discretionary Option Grant Program and thereby accelerate the
vesting of such shares in whole or in part at any time. 
 II.    INCENTIVE OPTIONS 

The terms and conditions specified below shall be applicable to all Incentive Options granted under this Article Two. Incentive Options
may only be granted to individuals who are Employees of the Company. Options which are specifically designated as “non-statutory” options when issued under the Plan shall not be subject to such terms and conditions. 

A.  Dollar Limitation.    The aggregate fair market value (determined as of the respective
date or dates of grant) of the Common Stock for which one or more options granted to any Employee under this Plan (or any other option plan of the Company or its parent or subsidiary corporations) may for the first time become exercisable as
incentive stock options under the Federal tax laws during any one calendar year shall not exceed the sum of One Hundred Thousand Dollars ($100,000). To the extent the Employee holds two or more such options which become exercisable for the first
time in the same calendar year, the foregoing limitation on the exercisability of such options as incentive stock options under the Federal tax laws shall be applied on the basis of the order in which such options are granted. Should the number of
shares of Common Stock for which any Incentive Option first becomes exercisable in any calendar year exceed the applicable One Hundred Thousand Dollar ($100,000) limitation, then that option may nevertheless be exercised in such calendar year for
the excess number of shares as a non-statutory option under the Federal tax laws. 
 B.  10%
Stockholder.    If any individual to whom an Incentive Option is granted is the owner of stock (as determined under Section 424(d) of the Internal Revenue Code) possessing 10% or more of the total combined voting
power of all classes of stock of the Company or any one of its parent or subsidiary corporations, then the option price per share shall not be less than one hundred and ten percent (110%) of the fair market value per share of Common Stock on
the grant date, and the option term shall not exceed five (5) years, measured from the grant date. 

C.  Termination of Employment.    Any portion of an Incentive Option that remains outstanding
(by reason of the optionee remaining in the Service of the Company, pursuant to the Plan Administrator’s exercise of discretion under Section V of this Article Two, or otherwise) more than 3 months following the date an optionee ceases to be an
Employee of the Company shall thereafter be exercisable as a non-statutory option under federal tax laws. 

  
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 Except as modified by the preceding provisions of this Section II, the provisions of
Articles One, Two and Five of the Plan shall apply to all Incentive Options granted hereunder. 
 III.    CORPORATE
TRANSACTIONS/CHANGES IN CONTROL 
 A.  In the event of any of the following stockholder-approved transactions (a
“Corporate Transaction”): 
 (1)  a merger or consolidation in which the Company is not the
surviving entity, except for a transaction the principal purpose of which is to change the State of the Company’s incorporation, 
 (2)  the sale, transfer or other disposition of all or substantially all of the assets of the Company in liquidation or dissolution of the Company, or 

(3)  any reverse merger in which the Company is the surviving entity but in which securities possessing more
than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities are transferred to a person or persons different from the persons holding those securities immediately prior to such merger, 

then the exercisability of each option outstanding under this Article Two shall automatically accelerate so that each such option shall, immediately prior
to the specified effective date for the Corporate Transaction, become fully exercisable with respect to the total number of shares of Common Stock at the time subject to such option and may be exercised for all or any portion of such shares.
However, an outstanding option under this Article Two shall not so accelerate if and to the extent the acceleration of such option is subject to other limitations imposed by the Plan Administrator at the time of grant, unless the Plan
Administrator, in its discretion, later determines to waive such limitations. 
 B.  Immediately after the consummation
of the Corporate Transaction, all outstanding options under this Article Two shall terminate and cease to be outstanding, except to the extent assumed by the successor corporation or its parent company. The Plan Administrator shall have complete
discretion to provide, on such terms and conditions as it sees fit, for a cash payment to be made to any optionee on account of any option terminated in accordance with this paragraph, in an amount equal to the excess (if any) of (A) the fair
market value of the shares subject to the option as of the date of the Corporate Transaction, over (B) the aggregate exercise price of the option. 
 C.  Each outstanding option under this Article Two which is assumed in connection with the Corporate Transaction or is otherwise to continue in effect shall be appropriately adjusted,
immediately after such Corporate Transaction, to apply and pertain to the number and class of securities which would have been issued to the option holder, in consummation of such Corporate Transaction, had such person exercised the option
immediately prior to such Corporate Transaction. Appropriate adjustments shall also be made to the option price payable per share, provided the aggregate option price payable for such securities shall remain the same. In addition, the class
and number of securities available for issuance under the Plan following the consummation of the Corporate Transaction shall be appropriately adjusted. 
 D.  The grant of options under this Article Two shall in no way affect the right of the Company to adjust, reclassify, reorganize or otherwise change its capital or business structure or to
merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 
 E.  The
exercisability of each outstanding option under this Article Two shall automatically accelerate, and the Company’s outstanding repurchase rights under this Article Two shall immediately terminate upon the occurrence of a Change in Control.

 F.  For purposes of this Section III (and for all other purposes under the Plan), a Change in Control shall be
deemed to occur in the event: 
 (1)  any person or related group of persons (other than the Company or
a person that directly or indirectly controls, is controlled by, or is under common control with, the Company) directly or indirectly acquires beneficial ownership (within the meaning of Rule 13d-3 of the 1934 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 stockholders; or 

  
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 (2)  there is a change in the composition of the Board over a
period of twenty-four (24) consecutive 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
either (A) have been Board members continuously since the beginning of such period or (B) have been elected or nominated for election as Board members during such period by at least two-thirds of the Board members described in clause
(A) who were still in office at the time such election or nomination was approved by the Board. 
 G.  All options
accelerated in connection with the Change in Control shall remain fully exercisable until the expiration or sooner termination of the option term. 
 H.  The portion of any Incentive Option accelerated under this Section III in connection with a Corporate Transaction or Change in Control shall remain exercisable as an incentive stock option
under the Federal tax laws only to the extent the dollar limitation of Section II of this Article Two is not exceeded. To the extent such dollar limitation is exceeded, the accelerated portion of such option shall be exercisable as a non-statutory
option under the Federal tax laws. 
 IV.    STOCK APPRECIATION RIGHTS 

A.  Provided and only if the Plan Administrator determines in its discretion to implement the stock appreciation right
provisions of this Section IV, one or more optionees may be granted the right, exercisable upon such terms and conditions as the Plan Administrator may establish, to surrender all or part of an unexercised option granted under this Article Two in
exchange for a distribution from the Company in an amount equal to the excess of (i) the fair market value (on the option surrender date) of the number of shares in which the optionee is at the time vested under the surrendered option (or
surrendered portion thereof) over (ii) the aggregate option price payable for such vested shares. The distribution may be made in shares of Common Stock valued at fair market value on the option surrender date, in cash, or partly in shares and
partly in cash, as the Plan Administrator shall determine in its sole discretion. 
 B.  The shares of Common Stock
subject to any option surrendered for an appreciation distribution pursuant to this Section IV shall not be available for subsequent option grant under the Plan. 
 V.    EXTENSION OF EXERCISE PERIOD 
 The Plan
Administrator shall have full power and authority, exercisable either at the time the option is granted or at any time while the option remains outstanding, to extend the period of time for which any option granted under this Article Two is to
remain exercisable following the optionee’s cessation of Service or death from the limited period in effect under Section I.C.1 of Article Two to such greater period of time as the Plan Administrator shall deem appropriate; provided,
however, that in no event shall such option be exercisable after the specified expiration date of the option term. 
 ARTICLE
THREE 
 STOCK ISSUANCE PROGRAM 
 I.    STOCK ISSUANCE TERMS 
 Shares of Common Stock may
be issued under the Stock Issuance Program through direct and immediate issuances without any intervening option grants. Each such stock issuance shall be evidenced by a Stock Issuance Agreement which complies with the terms specified below. Shares
of Common Stock may also be issued under the Stock Issuance Program pursuant to share right awards which entitle the recipients to receive shares upon the attainment of designated Service and/or performance goals. 

A.  Purchase Price. 
 1.  The purchase price per share shall be fixed by the Plan Administrator, but shall not be less than one hundred percent (100%) of the fair market value per share of Common Stock on the
issuance date. 

  
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 2.  Shares of Common Stock may be issued under the Stock Issuance
Program for any of the following items of consideration which the Plan Administrator may deem appropriate in each individual instance: 
 (i)  cash or check made payable to the Company, or 

(ii)  services rendered to the Company (or any parent or subsidiary). 

B.  Vesting Provisions. 
 1.  The Plan Administrator may issue shares of Common Stock under the Stock Issuance Program which are fully and immediately vested upon issuance or which are to vest in one or more installments
over the participant’s period of Service or upon attainment of specified performance objectives. Alternatively, the Plan Administrator may issue share right awards under the Stock Issuance Program which shall entitle the recipient to receive a
specified number of shares of Common Stock upon the attainment of one or more Service and/or performance goals established by the Plan Administrator. Upon the attainment of such Service and/or performance goals, fully-vested shares of Common Stock
shall be issued in satisfaction of those share right awards. 
 2.  Any new, substituted or additional
securities or other property (including money paid other than as a regular cash dividend) issued by reason of any stock dividend, stock split, recapitalization, combination of shares, exchange of shares or other change affecting the outstanding
Common Stock as a class without the Company’s receipt of consideration, shall be issued or set aside with respect to the shares of unvested Common Stock granted to a participant or subject to a participant’s share right award, subject to
(i) the same vesting requirements applicable to the participant’s unvested shares of Common Stock or share rights award, and (ii) such escrow arrangements as the Plan Administrator shall deem appropriate. 

3.  The participant shall have full stockholder rights with respect to any shares of Common Stock issued to the
participant under the Stock Issuance Program, whether or not the participant’s interest in those shares is vested. Accordingly, the participant shall have the right to vote such shares and to receive any regular cash dividends paid on such
shares. 
 4.  The participant shall not have any stockholders rights with respect to any shares of
Common Stock subject to a share right award. However, the Plan Administrator may provide for a participant to receive one or more dividend equivalents with respect to such shares, entitling the participant to all regular cash dividends payable on
the shares of Common Stock underlying the share right award, which amounts shall be (i) subject to the same vesting requirements applicable to the shares of Common Stock underlying the share rights award, and (ii) payable upon issuance of
the shares to which such dividend equivalents relate. 
 5.  Should the participant cease to remain in
Service while holding one or more unvested shares of Common Stock issued under the Stock Issuance Program or should the performance objectives not be attained with respect to one or more such unvested shares of Common Stock, then those shares shall
be immediately surrendered to the Company for cancellation, and the participant shall have no further stockholder rights with respect to those shares. To the extent the surrendered shares were previously issued to the participant for consideration
paid in cash, the Company shall repay to the participant the cash consideration paid for the surrendered shares. 

6.  The Plan Administrator may in its discretion waive the surrender and cancellation of one or more unvested
shares of Common Stock which would otherwise occur upon the cessation of the Participant’s Service or the non-attainment of the performance objectives applicable to those shares. Such waiver shall result in the immediate vesting of the
participant’s interest in the shares of Common Stock as to which the waiver applies. Such waiver may be effected at any time, whether before or after the participant’s cessation of Service or the attainment or non-attainment of the
applicable performance objectives. 
 7.  Outstanding share right awards under the Stock Issuance
Program shall automatically terminate, and no shares of Common Stock shall actually be issued in satisfaction of those awards, if the Service and/or performance goals established for such awards are not attained. The Plan Administrator, however,
shall have the discretionary authority to issue shares of Common Stock in satisfaction of one or more outstanding share right awards as to which the designated Service and/or performance goals are not attained. Such authority


  
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may be exercised at any time, whether before or after the participant’s cessation of Service or the attainment or non-attainment of the applicable performance objectives. 

II.    CORPORATE TRANSACTION/CHANGE IN CONTROL 
 A.  All of the Company’s outstanding repurchase rights under the Stock Issuance Program shall terminate automatically, and all the shares of Common Stock subject to those terminated rights
shall immediately vest in full, in the event of any Corporate Transaction, except to the extent (i) those repurchase rights are to be assigned to the successor corporation (or parent thereof) in connection with the such Corporate Transaction,
or (ii) such accelerated vesting is precluded by other limitations imposed in the Stock Issuance Agreement, unless the Plan Administrator determines to waive such limitations. 

B.  Each repurchase right which is assigned in connection with (or is otherwise to continue in effect after) a Corporate
Transaction shall be appropriately adjusted such that it shall apply and pertain to the number and class of securities issued to the participant in consummation of the Corporate Transaction with respect to the shares granted to participant under
this Article Three. 
 C.  All of the Company’s outstanding repurchase rights under the Stock Issuance Program
shall automatically terminate, and all shares of Common Stock subject to those terminated rights shall immediately vest, in the event of any Change in Control. 
 D.  All shares of Common Stock underlying outstanding share right awards issued under the Stock Issuance Program shall vest, and all of the shares of Common Stock subject to such share right
awards shall be issued to participants, immediately prior to the consummation of any Corporate Transaction or Change in Control. 

III.    SHARE ESCROW / LEGENDS 
 Unvested shares may, in the Plan Administrator’s discretion, be held in escrow by the Company until the participant’s interest in such shares vests or may be issued directly to the participant
with restrictive legends on the certificates evidencing those unvested shares. 
 ARTICLE FOUR 

AUTOMATIC OPTION GRANT PROGRAM 
 I.    ELIGIBILITY. 
 The individuals eligible to receive
automatic option grants pursuant to the provisions of this Article Four shall be (i) those individuals who, after the effective date of this amendment and restatement, first become non-employee Board members, whether through appointment by the
Board, election by the Company’s stockholders, or by continuing to serve as a Board member after ceasing to be employed by the Company, and (ii) those individuals already serving as non-employee Board members on the effective date of this
amendment and restatement. As used herein, a “non-employee” Board member is any Board member who is not employed by the Company on the date in question. 
 II.    TERMS AND CONDITIONS OF AUTOMATIC OPTION GRANTS 

A.  Grants.    Option grants shall be made under this Article Four as follows: 

1.  Each individual who first becomes a non-employee Board member on or after the effective date of this
amendment and restatement shall automatically be granted at such time a non-statutory stock option under the terms and conditions of this Article Four, to purchase a number shares of Common Stock equal to the product of (i) 25,000, and
(ii) a fraction, the numerator of which is the number of months (rounded to the nearest whole number) remaining between the date such Board member first became a non-employee Board member and the Company’s next scheduled Annual
Stockholders Meeting, and the denominator of which is 12. 

  
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 2.  Immediately following each Annual Stockholders Meeting of the
Company, each individual who is then serving as a non-employee Board member (except for those individuals first elected to serve as non-employee Board members at such meeting), shall automatically be granted a non-statutory stock option under
this Article Four to acquire 15,000 shares of Common Stock. 
 B.  Exercise
Price.    The exercise price per share of each automatic option grant made under this Article Four shall be equal to one hundred percent (100%) of the fair market value per share of Common Stock on the automatic
grant date. 
 C.  Payment.    The exercise price shall be payable in one of the
alternative forms specified below: 
 (1)  payment in cash or check made payable to the Company’s
order; or 
 (2)  full payment in shares of Common Stock held for the requisite period necessary to
avoid a charge to the Company’s reported earnings and valued at fair market value on the Exercise Date (as such term is defined below); or 
 (3)  full payment in a combination of shares of Common Stock held for the requisite period necessary to avoid a charge to the Company’s reported earnings and valued at fair market value on
the Exercise Date and cash or check payable to the Company’s order; or 
 (4)  full payment
through a sale and remittance procedure pursuant to which the non-employee Board member (I) shall provide irrevocable written instructions to a designated brokerage firm to effect the immediate sale of the purchased shares and remit to the
Company, out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate exercise price payable for the purchased shares and shall (II) concurrently provide written directives to the Company to deliver the
certificates for the purchased shares directly to such brokerage firm in order to complete the sale transaction. 
 For purposes
of this subparagraph C, the Exercise Date shall be the date on which written notice of the option exercise is delivered to the Company. Except to the extent the sale and remittance procedure specified above is utilized for the exercise of the
option, payment of the option price for the purchased shares must accompany the exercise notice. 
 D.  Option
Term.    Each automatic grant under this Article Four shall have a term of ten (10) years measured from the automatic grant date. 
 E. Exercisability. 
 1.  Each initial
automatic grant made pursuant to Section II.A.1 of this Article Four shall vest and become exercisable over the period extending from the date of grant to the scheduled date of the next Annual Stockholders Meeting following the grant. A pro rata
portion of such automatic grant shall vest on the last day of each calendar month following the date of grant, with the final portion vesting on the scheduled date of such Annual Stockholders Meeting. 

2.  Each 15,000 share automatic grant made pursuant to Section II.A.2 of this Article Four shall vest and become
exercisable for 1/12th of the option shares upon the optionee’s completion of each month of Board service over the twelve (12)-month period measured from the automatic grant date. 

F.  Non-Transferability.    During the lifetime of the optionee, each automatic option grant,
together with the limited stock appreciation right pertaining to such option, shall be exercisable only by the optionee, except to the extent such option or the limited stock appreciation right is assigned or transferred (i) by will or by the
laws of descent and distribution following the optionee’s death, or (ii) during optionee’s lifetime either (A) as a gift in connection with the optionee’s estate plan to one or more members of optionee’s immediate
family, to a trust in which optionee and/or one or more such family members hold more than fifty percent (50%) of the beneficial interest or to an entity in which more than fifty percent (50%) of the voting interests are owned by optionee
and/or one or more such family members, or (B) pursuant to a domestic relations order. The portion of any option assigned or transferred during optionee’s lifetime shall be exercisable only by the person or persons who acquire a
proprietary interest in the option pursuant to such assignment. The terms applicable to the assigned portion shall be the same as those in effect for this option immediately prior to such assignment and shall be set forth in such documents issued to
the assignee as the Plan Administrator may deem appropriate. 

  
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 G.  Cessation of Board Service. 

1.  Should the optionee cease to serve as a Board member for any reason while holding one or more automatic
option grants under this Article Four, then such optionee shall have the remainder of the ten (10) year term of each such option in which to exercise each such option for any or all of the shares of Common Stock for which the option is
exercisable at the time of such cessation of Board service. Each such option shall immediately terminate and cease to be outstanding, at the time of such cessation of Board service, with respect to any shares for which the option is not otherwise at
that time exercisable. Upon the expiration of the ten (10)-year option term, the automatic grant shall terminate and cease to be outstanding in its entirety. Upon the death of the optionee, whether before or after cessation of Board service, any
option held by optionee at the time of optionee’s death may be exercised, for any or all of the shares of Common Stock for which the option was exercisable at the time of cessation of Board service by the optionee and which have not been
theretofore exercised by the optionee, by the personal representative of the optionee’s estate or by the person or persons to whom the option is transferred pursuant to the optionee’s will or in accordance with the laws of descent and
distribution. Any such exercise must occur during the reminder of the ten (10) year term of such option. 
 H.
Stockholder Rights.    The holder of an automatic option grant under this Article Four shall have none of the rights of a stockholder with respect to any shares subject to such option until such individual shall
have exercised the option and paid the exercise price for the purchased shares. 
 III.    CORPORATE TRANSACTIONS/CHANGES
IN CONTROL 
 A.  In the event of a Corporate Transaction, the exercisability of each option outstanding under this
Article Four shall automatically accelerate so that each such option shall, immediately prior to the specified effective date for the Corporate Transaction, become fully exercisable with respect to the total number of shares of Common Stock at the
time subject to such option and may be exercised for all or any portion of such shares. 
 B.  Immediately after the
consummation of the Corporate Transaction, all outstanding options under this Article Four shall terminate and cease to be outstanding, except to the extent assumed by the successor corporation or its parent company. If so provided by the terms of
the Corporate Transaction, the optionee shall receive a cash payment on account of any option terminated in accordance with this paragraph, in an amount equal to the excess (if any) of (A) the fair market value of the shares subject to the
option as valued pursuant to the Corporate Transaction over (B) the aggregate exercise price of the option. 

C.  Each outstanding option under this Article Four which is assumed in connection with the Corporate Transaction or is
otherwise to continue in effect shall be appropriately adjusted, immediately after such Corporate Transaction, to apply and pertain to the number and class of securities which would have been issued to the option holder, in consummation of such
Corporate Transaction, had such person exercised the option immediately prior to such Corporate Transaction. Appropriate adjustments shall also be made to the option price payable per share, provided the aggregate option price payable for
such securities shall remain the same. 
 D.  In connection with any Change in Control, the exercisability of each
option grant outstanding at the time under this Article Four shall automatically accelerate so that each such option shall, immediately prior to the specified effective date for the Change in Control, become fully exercisable with respect to the
total number of shares of Common Stock at the time subject to such option and may be exercised for all or any portion of such shares. 
 E.  The automatic grant of options under this Article Four shall in no way affect the right of the Company to adjust, reclassify, reorganize or otherwise change its capital or business structure
or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 

  
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 IV.    STOCK APPRECIATION RIGHTS 

A.  With respect to options granted under the Automatic Option Grant Program prior to March 7, 2006: 

1.  Upon the occurrence of a Hostile Take-Over, the optionee shall have a thirty (30)-day period in which to
surrender to the Company each option held by him or her under this Article Four. The optionee shall in return be entitled to a cash distribution from the Company in an amount equal to the excess of (i) the Take-Over Price of the shares of
Common Stock at the time subject to each surrendered option (whether or not the option is then exercisable for those shares) over (ii) the aggregate exercise price payable for such shares. The cash distribution shall be made within five (5)
days following the date the option is surrendered to the Company, and neither the approval of the Plan Administrator nor the consent of the Board shall be required in connection with the option surrender and cash distribution. Any unsurrendered
portion of the option shall continue to remain outstanding and become exercisable in accordance with the terms of the instrument evidencing such grant. This limited stock appreciation right shall in all events terminate upon the expiration or sooner
termination of the option term and may not be assigned or transferred by the optionee. 
 2.  For
purposes of Article Four, the following definitions shall be in effect: 
 (i)  A Hostile
Take-Over shall be deemed to occur in the event any person or related group of persons (other than the Company or a person that directly or indirectly controls, is controlled by, or is under common control with, the Company) directly or
indirectly acquires beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act, as amended) 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 stockholders which the Board does not recommend such stockholders to accept. 
 (ii)  The Take-Over Price per share shall be deemed to be equal to the fair market value per share on the option surrender date. 

B.  With respect to each option granted under the Automatic Option Grant Program on and after March 7, 2006, each optionee
shall have the right to surrender all or part of the option (to the extent not then exercised) in exchange for a distribution from the Company in an amount equal to the excess of (i) the fair market value (on the option surrender date) of the
number of shares in which the optionee is at the time vested under the surrendered option (or surrendered portion thereof) over (ii) the aggregate option price payable for such vested shares. The distribution shall be made in shares of Common
Stock valued at fair market value on the option surrender date. 
 C.  The shares of Common Stock subject to any option
surrendered for an appreciation distribution pursuant to this Section IV shall not be available for subsequent option grant under the Plan. 
 ARTICLE FIVE 
 MISCELLANEOUS 

I.    AMENDMENT OF THE PLAN 
 The Board shall have complete and exclusive power and authority to amend or modify the Plan in any or all respects whatsoever. However, no such amendment or modification shall, without the consent of the
holders, adversely affect rights and obligations with respect to options at the time outstanding under the Plan. In addition, certain amendments may require stockholder approval pursuant to applicable laws or regulations. 

II.    TAX WITHHOLDING 
 A.  The Company’s obligation to deliver shares or cash upon the exercise of stock options or stock appreciation rights or upon the grant or vesting of direct stock issuances under the Plan
shall be subject to the satisfaction of all applicable Federal, State and local income and employment tax withholding requirements. 
 B.  The Plan Administrator may, in its discretion and upon such terms and conditions as it may deem appropriate, provide any or all holders of outstanding options or stock issuances under the
Plan (other than the 

  
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automatic option grants under Article Four) with the election to have the Company withhold, from the shares of Common Stock otherwise issuable upon the exercise or vesting of such awards, a whole
number of such shares with an aggregate fair market value equal to the minimum amount necessary to satisfy the Federal, State and local income and employment tax withholdings (the “Taxes”) incurred in connection with the acquisition or
vesting of such shares. In lieu of such direct withholding, one or more participants may also be granted the right to deliver whole shares of Common Stock to the Company in satisfaction of such Taxes. Any withheld or delivered shares shall be valued
at their fair market value on the applicable determination date for such Taxes. 
 III.    EFFECTIVE DATE AND TERM OF
PLAN 
 A.  The Plan, as amended and restated, shall be effective on the date specified in the Board of Directors
resolution adopting the Plan. Except as provided below, each option issued and outstanding under the Plan immediately prior to such effective date shall continue to be governed solely by the terms and conditions of the agreement evidencing such
grant, and nothing in this restatement of the Plan shall be deemed to affect or otherwise modify the rights or obligations of the holders of such options with respect to their acquisition of shares of Common Stock thereunder. The Plan Administrator
shall, however, have full power and authority, under such circumstances as the Plan Administrator may deem appropriate (but in accordance with Section I of this Article Five), to extend one or more features of this amendment and restatement to any
options outstanding on the effective date. 
 B.  Unless sooner terminated in accordance with the other provisions of
this Plan, the Plan shall terminate upon the earlier of (i) March 6, 2016 or (ii) the date on which all shares available for issuance under the Plan shall have been issued or cancelled pursuant to the exercise, surrender or
cash-out of the options granted hereunder. If the date of termination is determined under clause (i) above, then any options or stock issuances outstanding on such date shall continue to have force and effect in accordance with the provisions
of the agreements evidencing those awards. 
 C.  Options may be granted with respect to a number of shares of Common
Stock in excess of the number of shares at the time available for issuance under the Plan, provided each granted option is not to become exercisable, in whole or in part, at any time prior to stockholder approval of an amendment authorizing a
sufficient increase in the number of shares issuable under the Plan. 
 IV.    USE OF PROCEEDS 

Any cash proceeds received by the Company from the sale of shares pursuant to options or stock issuances granted under the Plan shall be
used for general corporate purposes. 
 V.    REGULATORY APPROVALS 

A.  The implementation of the Plan, the granting of any option hereunder, and the issuance of stock (i) upon the exercise
or surrender of any option or (ii) under the Stock Issuance Program shall be subject to the procurement by the Company of all approvals and permits required by regulatory authorities having jurisdiction over the Plan, the options granted under
it and the stock issued pursuant to it. 
 B.  No shares of Common Stock or other assets shall be issued or delivered
under the Plan unless and until there shall have been compliance with all applicable requirements of Federal and state securities laws, including (to the extent required) the filing and effectiveness of the Form S-8 registration statement for the
shares of Common Stock issuable under the Plan, and all applicable listing requirements of any stock exchange (or the Nasdaq National Market, the Nasdaq Global Select Market or any successor system, if applicable) on which Common Stock is then
trading. 
 VI.    NO EMPLOYMENT/SERVICE RIGHTS 

Neither the action of the Company in establishing or restating the Plan, nor any action taken by the Plan Administrator hereunder, nor any
provision of the Plan shall be construed so as to grant any individual the right to remain in the employ or service of the Company (or any parent or subsidiary corporation) for any period of 

  
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specific duration, and the Company (or any parent or subsidiary corporation retaining the services of such individual) may terminate such individual’s employment or service at any time and
for any reason, with or without cause. 
 VII.    MISCELLANEOUS PROVISIONS 

A.  Except to the extent otherwise expressly provided in the Plan, the right to acquire Common Stock or other assets under the
Plan may not be assigned, encumbered or otherwise transferred by any participant. 
 B.  The provisions of the Plan
relating to the exercise of options and the issuance and/or vesting of shares shall be governed by the laws of the State of Alabama without resort to that state’s conflict-of-laws provisions, as such laws are applied to contracts entered into
and performed in such State. 

  
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