Precision Castparts Corp. 1994 Stock Incentive Plan



 Exhibit 10.2 
 PRECISION CASTPARTS CORP. 
 1994 STOCK INCENTIVE PLAN 
 1. Purpose. The purpose of this 1994 Stock Incentive Plan (the “Plan”) of Precision Castparts Corp. (the “Company”) is to
encourage selected employees of the Company and its subsidiaries who are in a position to influence the financial success of the Company or of its subsidiaries to acquire a proprietary interest in the Company and to give them added incentive to
advance the interests of the Company, through an opportunity to share in its profits and growth. 
 2. Shares Subject to the Plan.
Subject to adjustment as provided below and in paragraph 12, the shares to be offered under the Plan shall consist of Common Stock of the Company, and the total number of shares of Common Stock that may be issued under the Plan shall not exceed
2,548,117 shares, plus any shares that are subject to options granted under the Company’s 1984 Stock Incentive Plan (the “1984 Plan”) which are outstanding on May 16, 1994 and which options expire, terminate or are cancelled
under such plan after May 16, 1994. The shares issued under the Plan may be authorized and unissued shares or reacquired shares. If an option or stock appreciation right granted under the Plan expires, terminates or is cancelled, the unissued
shares subject to such option or stock appreciation right shall again be available under the Plan. If shares sold or awarded as a bonus under the Plan are forfeited to the Company or repurchased by the Company, the number of shares forfeited or
repurchased shall again be available under the Plan. 
 3. Effective Date and Duration of Plan. 
 (a) Effective Date. The Plan shall become effective as of May 18, 1994. No option or stock appreciation right granted
under the Plan to an officer who is subject to Section 16(b) of the Securities Exchange Act of 1934, as amended (an “Officer”) or a director shall become exercisable, however, until the Plan is approved by the affirmative vote of the
holders of a majority of the shares of Common Stock represented at a shareholders meeting at which a quorum is present and any such awards under the Plan prior to such approval shall be conditioned on and subject to such approval. Subject to this
limitation, options and stock appreciation rights may be granted and shares may be awarded as bonuses or sold under the Plan at any time after the effective date and before termination of the Plan. 
 (b) Duration. The Plan shall continue in effect until all shares available for issuance under the Plan have been issued and
all restrictions on such shares have lapsed. The Board of Directors may suspend or terminate the Plan at any time except with respect to options and shares subject to restrictions then outstanding under the Plan. Termination shall not affect any
outstanding options, any right of the Company to repurchase shares or the forfeitability of shares issued under the Plan. 
  

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 4. Administration. 
 (a) Board of Directors. The Plan shall be administered by the Board of Directors of the Company, which shall determine and
designate from time to time the individuals to whom awards shall be made, the amount of the awards and the other terms and conditions of the awards. Subject to the provisions of the Plan, the Board of Directors may from time to time adopt and amend
rules and regulations relating to administration of the Plan, advance the lapse of any waiting period, accelerate any exercise date, waive or modify any restriction applicable to shares (except those restrictions imposed by law) and make all other
determinations in the judgment of the Board of Directors necessary or desirable for the administration of the Plan. The interpretation and construction of the provisions of the Plan and related agreements by the Board of Directors shall be final and
conclusive. The Board of Directors may correct any defect or supply any omission or reconcile any inconsistency in the Plan or in any related agreement in the manner and to the extent it shall deem expedient to carry the Plan into effect, and it
shall be the sole and final judge of such expediency. 
 (b) Committee. The Board of Directors may delegate to a
committee of the Board of Directors or specified officers of the Company, or both (the “Committee”) any or all authority for administration of the Plan. If authority is delegated to a Committee, all references to the Board of Directors in
the Plan shall mean and relate to the Committee except (i) as otherwise provided by the Board of Directors, (ii) that only the Board of Directors may amend or terminate the Plan as provided in paragraphs 3 and 15 and (iii) that a
Committee including officers of the Company shall not be permitted to grant options to persons who are officers of the Company. If awards are to be made under the Plan to Officers or directors, authority for selection of Officers and directors for
participation and decisions concerning the timing, pricing and amount of a grant or award, if not determined under a formula meeting the requirements of Rule 16b-3 under the Securities Exchange Act of 1934, as amended, shall be delegated to a
committee consisting of two or more disinterested directors. 
 (c) Indemnification of Committee. In addition to
such other rights of indemnification as they may have as officers or directors or as members of the Committee, the members of the Committee shall be indemnified by the Company against the reasonable expenses, including attorneys’ fees actually
and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection
with the Plan or any option granted thereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the Company) or paid by them in satisfaction of a judgment in
any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such Committee member is liable for negligence or misconduct in the performance of his duties; provided that
within sixty (60) days after institution of any such action, suit or proceeding a Committee member shall in writing offer the Company the opportunity, at its own expense, to handle and defend the same. 
 5. Types of Awards; Eligibility. The Board of Directors may, from time to time, take the following action, separately or in combination, under the
Plan: (i) grant Incentive Stock Options, as defined in Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), as provided in paragraphs 6(a) and 6(b); (ii) grant options other than 

  

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Incentive Stock Options (“Non-Statutory Stock Options”) as provided in paragraphs 6(a) and 6(c); (iii) award stock bonuses as provided in
paragraph 7; (iv) sell shares subject to restrictions as provided in paragraph 8; (v) grant stock appreciation rights as provided in paragraph 9; (vi) grant cash bonus rights as provided in paragraph 10; and
(vii) grant foreign qualified awards as provided in paragraph 11. Any such awards may be made to salaried key employees of the Company or any subsidiary of the Company, including employees who are officers or directors, who have
substantial responsibility in the direction and management of the Company or any of its subsidiaries or divisions. The Board of Directors shall select the individuals to whom awards shall be made and shall specify the action taken with respect to
each individual to whom an award is made. At the discretion of the Board of Directors, an individual may be given an election to surrender an award in exchange for the grant of a new award. No individual may be granted options or stock appreciation
rights under the Plan for more than 100,000 shares of Common Stock in any calendar year. 
 6. Option Grants. 
 (a) General Rules Relating to Options. 
 (i) Terms of Grant. The Board of Directors may grant options under the Plan. With respect to each option grant, the Board of
Directors shall determine the number of shares subject to the option, the option price, the period of the option, the time or times at which the option may be exercised and whether the option is an Incentive Stock Option or a Non-Statutory Stock
Option. At the time of the grant of an option or at any time thereafter, the Board of Directors may provide that an optionee who exercised an option with Common Stock of the Company shall automatically receive a new option to purchase additional
shares equal to the number of shares surrendered and may specify the terms and conditions of such new options. 
 (ii)
Exercise of Options. Except as provided in paragraph 6(a)(iv) or as determined by the Board of Directors, no option granted under the Plan may be exercised unless at the time of such exercise the optionee is employed by the Company or
any subsidiary of the Company and shall have been so employed continuously since the date such option was granted. Absence on leave or on account of illness or disability under rules established by the Board of Directors shall not, however, be
deemed an interruption of employment for this purpose. Unless otherwise determined by the Board of Directors, vesting of options and stock appreciation rights shall continue during a medical, family or military leave of absence, whether paid or
unpaid, and vesting of options and stock appreciation rights shall be suspended during any other unpaid leave of absence. Except as provided in paragraphs 6(a)(iv), 12 and 14, options granted under the Plan may be exercised from time to time
over the period stated in each option in such amounts and at such times as shall be prescribed by the Board of Directors, provided that options shall not be exercised for fractional shares. Unless otherwise determined by the Board of Directors, if
the optionee does not exercise an option in any one year with respect to the full number of shares to which the optionee is entitled in that year, the optionee’s rights shall be cumulative and the optionee may purchase those shares in any


  

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subsequent year during the term of the option. Unless otherwise determined by the Board of Directors, if an Officer exercises an option within six months of
the grant of the option, the shares acquired upon exercise of the option may not be sold until six months after the date of grant of the option. 
 (iii) Nontransferability. Each Incentive Stock Option and, unless otherwise determined by the Board of Directors with respect to an option granted to a person who is neither an Officer nor a director of the
Company, each other option granted under the Plan by its terms shall be nonassignable and nontransferable by the optionee, either voluntarily or by operation of law, except by will or by the laws of descent and distribution of the state or country
of the optionee’s domicile at the time of death, and each option by its terms shall be exercisable during the optionee’s lifetime only by the optionee. 
 (iv) Termination of Employment. 
 (A) General Rule. Unless otherwise determined by the Board of Directors, in the event the employment of the optionee with the Company or a subsidiary terminates for any reason other than because of physical
disability, death or, in the case of Nonstatutory Stock Options, retirement, as provided in subparagraphs 6(a)(iv)(B), (C) and (D), the option may be exercised at any time prior to the expiration date of the option or the expiration of three
months (six months in the case of Nonstatutory Stock Options) after the date of such termination, whichever is the shorter period, but only if and to the extent the optionee was entitled to exercise the option at the date of such termination.

 (B) Termination Because of Total Disability. Unless otherwise determined by the Board of Directors, in the event of
the termination of employment because of total disability, the option may be exercised at any time prior to the expiration date of the option or the expiration of three months after the date of such termination (six months in the case of
Nonstatutory Stock Options), whichever is the shorter period, but only if and to the extent the optionee was entitled to exercise the option at the date of such termination. The term “total disability” means a mental or physical impairment
which is expected to result in death or which has lasted or is expected to last for a continuous period of 12 months or more and which causes the optionee to be unable, in the opinion of the Company and two independent physicians, to perform his or
her duties as an employee of the Company and to be engaged in any substantial gainful activity. Total disability shall be deemed to have occurred on the first day after the Company and the two independent physicians have furnished their opinion of
total disability to the Company. 
 (C) Termination Because of Death. Unless otherwise determined by the Board of
Directors, in the event of the death of an optionee while employed by the Company or a subsidiary, the option may be exercised at any time prior to the expiration date of the option or the expiration of 12 

  

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months after the date of death, whichever is the shorter period, but only if and to the extent the optionee was entitled to exercise the option at the date
of death and only by the person or persons to whom such optionee’s rights under the option shall pass by the optionee’s will or by the laws of descent and distribution of the state or country of domicile at the time of death. 

(D) Termination Upon Retirement at Normal Retirement Age or at Bona Fide early Retirement. In the event the employment of an
optionee by the Company or by any subsidiary of the Company is terminated by retirement at normal retirement age as defined under the provisions of the Company’s Retirement Plan or under conditions of bona fide early retirement, any
Non-Statutory Stock Option may be exercised at any time prior to its expiration date or the expiration of twelve months after the date of such termination of employment, whichever is the shorter period, but only if and to the extent the optionee was
entitled to exercise the option on the date of such termination. 
 (E) Amendment of Exercise Period Applicable to
Termination. The Board of Directors, at the time of grant or at any time thereafter, may extend the 3-month, 6-month and 12-month exercise periods any length of time not longer than the original expiration date of the option, and may increase
the portion of an option that is exercisable, subject to such terms and conditions as the Board of Directors may determine. 
 (F) Failure to Exercise Option. To the extent that the option of any deceased optionee or of any optionee whose employment terminates is not exercised within the applicable period, all further rights to purchase shares pursuant to
such option shall cease and terminate. 
 (v) Purchase of Shares. Unless the Board of Directors determines otherwise,
shares may be acquired pursuant to an option granted under the Plan only upon receipt by the Company of notice in writing from the optionee of the optionee’s intention to exercise, specifying the date the option being exercised was granted, the
number of shares as to which the optionee desires to exercise the option, and the date on which the optionee desires to complete the transaction, and if required in order to comply with the Securities Act of 1933, as amended, containing a
representation that it is the optionee’s present intention to acquire the shares for investment and not with a view to distribution. Unless the Board of Directors determines otherwise, on or before the date specified for completion of the
purchase of shares pursuant to an option, the optionee must have paid the Company the full purchase price of such shares in cash (including, with the consent of the Board of Directors, cash that may be the proceeds of a loan from the Company) or,
with the consent of the Board of Directors, in whole or in part, in Common Stock of the Company valued at fair market value, restricted stock, promissory notes and other forms of consideration. The fair market value of Common Stock provided in
payment of the purchase price shall be the closing price of the Common Stock as reported in The Wall Street Journal on the trading day 

  

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preceding the date the option is exercised, or such other reported value of the Common Stock as shall be specified by the Board of Directors. No shares shall
be issued until full payment for the shares has been made. With the consent of the Board of Directors, an optionee may request the Company to apply automatically the shares to be received upon the exercise of a portion of a stock option (even though
stock certificates have not yet been issued) to satisfy the purchase price for additional portions of the option. Each optionee who has exercised an option shall immediately upon notification of the amount due, if any, pay to the Company in cash
amounts necessary to satisfy any applicable federal, state and local tax withholding requirements. If additional withholding is or becomes required beyond any amount deposited before delivery of the certificates, the optionee shall pay such amount
to the Company on demand. If the optionee fails to pay the amount demanded, the Company may withhold that amount from other amounts payable by the Company to the optionee, including salary, subject to applicable law. With the consent of the Board of
Directors an optionee may satisfy this obligation, in whole or in part, by having the Company withhold from the shares to be issued upon the exercise that number of shares that would satisfy the withholding amount due or by delivering to the Company
Common Stock to satisfy the withholding amount. Upon the exercise of an option, the number of shares reserved for issuance under the Plan shall be reduced by the number of shares issued upon exercise of the option, less the number of shares
surrendered in payment of the option exercise or surrendered or withheld to satisfy withholding obligations. 
 (b)
Incentive Stock Options. Incentive Stock Options shall be subject to the following additional terms and conditions: 
 (i) Limitation on Amount of Grants. No employee may be granted Incentive Stock Options under the Plan if the aggregate fair market value, on the date of grant, of the Common Stock with respect to which Incentive Stock Options are
exercisable for the first time by that employee during any calendar year under the Plan and under any other incentive stock option plan (within the meaning of Section 422 of the Code) of the Company or any parent or subsidiary of the Company
exceeds $100,000. 
 (ii) Limitations on Grants to 10 Percent Shareholders. An Incentive Stock Option may be granted
under the Plan to an employee possessing more than 10 percent of the total combined voting power of all classes of stock of the Company or of any parent or subsidiary of the Company only if the option price is at least 110 percent of the
fair market value of the Common Stock subject to the option on the date it is granted, as described in paragraph 6(b)(iv), and the option by its terms is not exercisable after the expiration of five years from the date it is granted.

 (iii) Duration of Options. Subject to paragraphs 6(a)(ii) and 6(b)(ii), Incentive Stock Options granted under
the Plan shall continue in effect for the period fixed by the Board of Directors, except that no Incentive Stock Option shall be exercisable after the expiration of 10 years from the date it is granted. 
  

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 (iv) Option Price. The option price per share shall be determined by the Board of
Directors at the time of grant. Except as provided in paragraph 6(b)(ii), the option price shall not be less than 100 percent of the fair market value of the Common Stock covered by the Incentive Stock Option at the date the option is granted.
The fair market value shall be the closing price of the Common Stock as reported in The Wall Street Journal on the day preceding the date the option is granted, or if there has been no sale on that date, on the last preceding date on which a
sale occurred, or such other value of the Common Stock as shall be specified by the Board of Directors. 
 (v) Limitation
on Time of Grant. No Incentive Stock Option shall be granted on or after the tenth anniversary of the effective date of the Plan. 
 (vi) Conversion of Incentive Stock Options. The Board of Directors may at any time without the consent of the optionee convert an Incentive Stock Option to a Non-Statutory Stock Option. 
 (c) Non-Statutory Stock Options. Non-Statutory Stock Options shall be subject to the following terms and conditions:

 (i) Option Price. The option price for Non-Statutory Stock Options shall be determined by the Board of Directors at
the time of grant and may be any amount determined by the Board of Directors. 
 (ii) Duration of Options.
Non-Statutory Stock Options granted under the Plan shall continue in effect for the period fixed by the Board of Directors. 
 7. Stock
Bonuses. The Board of Directors may award shares under the Plan as stock bonuses. Shares awarded as a bonus shall be subject to the terms, conditions, and restrictions determined by the Board of Directors. The restrictions may include
restrictions concerning transferability and forfeiture of the shares awarded, together with such other restrictions as may be determined by the Board of Directors. If shares are subject to forfeiture, all dividends or other distributions paid by the
Company with respect to the shares shall be retained by the Company until the shares are no longer subject to forfeiture, at which time all accumulated amounts shall be paid to the recipient. The Board of Directors may require the recipient to sign
an agreement as a condition of the award, but may not require the recipient to pay any monetary consideration other than amounts necessary to satisfy tax withholding requirements. The agreement may contain any terms, conditions, restrictions,
representations and warranties required by the Board of Directors. The certificates representing the shares awarded shall bear any legends required by the Board of Directors. Unless otherwise determined by the Board of Directors, shares awarded as a
stock bonus to an Officer may not be sold until six months after the date of the award. The Company may require any recipient of a stock bonus to pay to the Company in cash upon demand amounts necessary to satisfy any applicable federal, state or
local tax withholding requirements. If the recipient fails to pay the amount demanded, the Company may withhold that amount from 

  

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other amounts payable by the Company to the recipient, including salary, subject to applicable law. With the consent of the Board of Directors, a recipient
may deliver Common Stock to the Company to satisfy this withholding obligation. Upon the issuance of a stock bonus, the number of shares reserved for issuance under the Plan shall be reduced by the number of shares issued, less the number of shares
surrendered or withheld to satisfy withholding obligations. 
 8. Restricted Stock. The Board of Directors may issue shares under the
Plan for such consideration (including promissory notes and services) as determined by the Board of Directors. Shares issued under the Plan shall be subject to the terms, conditions and restrictions determined by the Board of Directors. The
restrictions may include restrictions concerning transferability, repurchase by the Company and forfeiture of the shares issued, together with such other restrictions as may be determined by the Board of Directors. If shares are subject to
forfeiture or repurchase by the Company, all dividends or other distributions paid by the Company with respect to the shares shall be retained by the Company until the shares are no longer subject to forfeiture or repurchase, at which time all
accumulated amounts shall be paid to the recipient. All Common Stock issued pursuant to this paragraph 8 shall be subject to a purchase agreement, which shall be executed by the Company and the prospective recipient of the shares prior to the
delivery of certificates representing such shares to the recipient. The purchase agreement may contain any terms, conditions, restrictions, representations and warranties required by the Board of Directors. The certificates representing the shares
shall bear any legends required by the Board of Directors. Unless otherwise determined by the Board of Directors, shares issued under this paragraph 8 to an Officer may not be sold until six months after the shares are issued. The Company may
require any purchaser of restricted stock to pay to the Company in cash upon demand amounts necessary to satisfy any applicable federal, state or local tax withholding requirements. If the purchaser fails to pay the amount demanded, the Company may
withhold that amount from other amounts payable by the Company to the purchaser, including salary, subject to applicable law. With the consent of the Board of Directors, a purchaser may deliver Common Stock to the Company to satisfy this withholding
obligation. Upon the issuance of restricted stock, the number of shares reserved for issuance under the Plan shall be reduced by the number of shares issued, less the number of shares surrendered in payment of the restricted stock or surrendered or
withheld to satisfy withholding obligations. 
 9. Stock Appreciation Rights. 
 (a) Grant. Stock appreciation rights may be granted under the Plan by the Board of Directors, subject to such rules, terms,
and conditions as the Board of Directors prescribes. 
 (b) Exercise. 
 (i) Each stock appreciation right shall entitle the holder, upon exercise, to receive from the Company in exchange therefor an amount
equal in value to the excess of the fair market value on the date of exercise of one share of Common Stock of the Company over its fair market value on the date of grant (or, in the case of a 

  

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stock appreciation right granted in connection with an option, the excess of the fair market value of one share of Common Stock of the Company over the
option price per share under the option to which the stock appreciation right relates), multiplied by the number of shares covered by the stock appreciation right or the option, or portion thereof, that is surrendered. No stock appreciation right
shall be exercisable at a time that the amount determined under this subparagraph is negative. Payment by the Company upon exercise of a stock appreciation right may be made in Common Stock valued at fair market value, in cash, or partly in Common
Stock and partly in cash, all as determined by the Board of Directors. 
 (ii) A stock appreciation right shall be exercisable
only at the time or times established by the Board of Directors. If a stock appreciation right is granted in connection with an option, the following rules shall apply: (1) the stock appreciation right shall be exercisable only to the extent
and on the same conditions that the related option could be exercised; (2) upon exercise of the stock appreciation right, the option or portion thereof to which the stock appreciation right relates terminates; and (3) upon exercise of the
option, the related stock appreciation right or portion thereof terminates. Unless otherwise determined by the Board of Directors, no stock appreciation right granted to an Officer or director may be exercised during the first six months
following the date it is granted. 
 (iii) The Board of Directors may withdraw any stock appreciation right granted under the
Plan at any time and may impose any conditions upon the exercise of a stock appreciation right or adopt rules and regulations from time to time affecting the rights of holders of stock appreciation rights. Such rules and regulations may govern the
right to exercise stock appreciation rights granted prior to adoption or amendment of such rules and regulations as well as stock appreciation rights granted thereafter. 
 (iv) For purposes of this paragraph 9, the fair market value of the Common Stock shall be the closing price of the Common Stock as
reported in The Wall Street Journal, or such other reported value of the Common Stock as shall be specified by the Board of Directors, on the trading day preceding the date the stock appreciation right is exercised. 
 (v) No fractional shares shall be issued upon exercise of a stock appreciation right. In lieu thereof, cash may be paid in an amount equal
to the value of the fraction or, if the Board of Directors shall determine, the number of shares may be rounded downward to the next whole share. 
 (vi) Each stock appreciation right granted in connection with an Incentive Stock Option, and unless otherwise determined by the Board of Directors with respect to a stock appreciation right granted to a person who is
neither an Officer nor a director of the Company, each other stock appreciation right granted under the Plan by its terms shall be nonassignable and nontransferable by the holder, either voluntarily or by operation of law, except by will or by the
laws of descent and distribution of the state or country of the holder’s domicile at the time of death, and each stock appreciation right by its terms shall be exercisable during the holder’s lifetime only by the holder. 
  

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 (vii) Each participant who has exercised a stock appreciation right shall, upon
notification of the amount due, pay to the Company in cash amounts necessary to satisfy any applicable federal, state and local tax withholding requirements. If the participant fails to pay the amount demanded, the Company may withhold that amount
from other amounts payable by the Company to the participant including salary, subject to applicable law. With the consent of the Board of Directors a participant may satisfy this obligation, in whole or in part, by having the Company withhold from
any shares to be issued upon the exercise that number of shares that would satisfy the withholding amount due or by delivering Common Stock to the Company to satisfy the withholding amount. 
 (viii) Upon the exercise of a stock appreciation right for shares, the number of shares reserved for issuance under the Plan shall be
reduced by the number of shares issued, less the number of shares surrendered or withheld to satisfy withholding obligations. Cash payments of stock appreciation rights shall not reduce the number of shares of Common Stock reserved for issuance
under the Plan. 
 10. Cash Bonus Rights. 
 (a) Grant. The Board of Directors may grant cash bonus rights under the Plan in connection with (i) options granted or
previously granted, (ii) stock appreciation rights granted or previously granted, (iii) stock bonuses awarded or previously awarded and (iv) shares sold or previously sold under the Plan. Cash bonus rights will be subject to rules,
terms and conditions as the Board of Directors may prescribe. Unless otherwise determined by the Board of Directors with respect to a cash bonus right granted to a person who is neither an Officer nor a director of the Company, each cash bonus right
granted under the Plan by its terms shall be nonassignable and nontransferable by the holder, either voluntarily or by operation of law, except by will or by the laws of descent and distribution of the state or country of the holder’s domicile
at the time of death. The payment of a cash bonus shall not reduce the number of shares of Common Stock reserved for issuance under the Plan. 
 (b) Cash Bonus Rights in Connection With Options. A cash bonus right granted in connection with an option will entitle an optionee to a cash bonus when the related option is exercised (or terminates in
connection with the exercise of a stock appreciation right related to the option) in whole or in part. If an optionee purchases shares upon exercise of an option and does not exercise a related stock appreciation right, the amount of the bonus shall
be determined by multiplying the excess of the total fair market value of the shares to be acquired upon the exercise over the total option price for the shares by the applicable bonus percentage. If the optionee exercises a related stock
appreciation right in connection with the termination of an option, the amount of the bonus shall be determined by multiplying the total fair market value of the shares and cash received pursuant to the exercise of the stock appreciation right by
the applicable bonus percentage. The bonus percentage applicable to a bonus right shall be determined from time to time by the Board of Directors. 
  

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 (c) Cash Bonus Rights in Connection With Stock Bonus. A cash bonus right
granted in connection with a stock bonus will entitle the recipient to a cash bonus payable when the stock bonus is awarded or restrictions, if any, to which the stock is subject lapse. If bonus stock awarded is subject to restrictions and is
repurchased by the Company or forfeited by the holder, the cash bonus right granted in connection with the stock bonus shall terminate and may not be exercised. The amount and timing of payment of a cash bonus shall be determined by the Board of
Directors. 
 (d) Cash Bonus Rights in Connection With Stock Purchases. A cash bonus right granted in connection
with the purchase of stock pursuant to paragraph 8 will entitle the recipient to a cash bonus when the shares are purchased or restrictions, if any, to which the stock is subject lapse. Any cash bonus right granted in connection with shares
purchased pursuant to paragraph 8 shall terminate and may not be exercised in the event the shares are repurchased by the Company or forfeited by the holder pursuant to applicable restrictions. The amount of any cash bonus to be awarded and timing
of payment of a cash bonus shall be determined by the Board of Directors. 
 (e) Taxes. The Company shall
withhold from any cash bonus paid pursuant to paragraph 10 the amount necessary to satisfy any applicable federal, state and local withholding requirements. 
 11. Foreign Qualified Grants. Awards under the Plan may be granted to such officers and employees of the Company and its subsidiaries residing in foreign jurisdictions as the Board of Directors may determine
from time to time. The Board of Directors may adopt such supplements to the Plan as may be necessary to comply with the applicable laws of such foreign jurisdictions and to afford participants favorable treatment under such laws; provided, however,
that no award shall be granted under any such supplement with terms which are more beneficial to the participants than the terms permitted by the Plan. 
 12. Changes in Capital Structure. 
 (a) Stock Splits; Stock
Dividends. If the outstanding Common Stock of the Company is hereafter increased or decreased or changed into or exchanged for a different number or kind of shares or other securities of the Company by reason of any stock split,
combination of shares or dividend payable in shares, recapitalization or reclassification, appropriate adjustment shall be made by the Board of Directors in the number and kind of shares available for grants under the Plan. In addition, the Board of
Directors shall make appropriate adjustment in the number and kind of shares as to which outstanding options and stock appreciation rights, or portions thereof then unexercised, shall be exercisable, so that the optionee’s proportionate
interest before and after the occurrence of the event is maintained. Notwithstanding the foregoing, the Board of Directors shall have no obligation to effect any adjustment that would or might result in the issuance of fractional shares, and any
fractional shares resulting from any adjustment may be disregarded or provided for in any manner determined by the Board of Directors. Any such adjustments made by the Board of Directors shall be conclusive. 
  

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 (b) Mergers, Reorganizations, Etc. In the event of a merger,
consolidation or plan of exchange to which the Company is a party or a sale of all or substantially all of the Company’s assets (each, a “Transaction”), the Board of Directors shall, in its sole discretion and to the extent possible
under the structure of the Transaction, select one of the following alternatives for treating outstanding options and stock appreciation rights under the Plan: 
 (i) Outstanding options and stock appreciation rights shall remain in effect in accordance with their terms. 
 (ii) Outstanding options and stock appreciation rights shall be converted into options to purchase stock in the corporation and stock
appreciation rights with respect to stock in the corporation that is the surviving or acquiring corporation in the Transaction. The amount, type of securities subject thereto and exercise price of the converted options and stock appreciation rights
shall be determined by the Board of Directors of the Company, taking into account the relative values of the companies involved in the Transaction and the exchange rate, if any, used in determining shares of the surviving corporation to be issued to
holders of shares of the Company. Unless otherwise determined by the Board of Directors, the converted options and stock appreciation rights shall be vested only to the extent that the vesting requirements relating to options and stock appreciation
rights granted hereunder have been satisfied. 
 (iii) Holders of outstanding options and stock appreciation rights shall be
provided a 30-day period prior to the consummation of the Transaction during which outstanding options and stock appreciation rights shall be exercisable to the extent vested without any limit on exercisability and upon the expiration of such 30-day
period, all unexercised options and stock appreciation rights shall immediately terminate. The Board of Directors may, in its sole discretion, accelerate the exercisability of options or stock appreciation rights so that they are exercisable in full
during such 30-day period. 
 (c) Dissolution of the Company. In the event of the dissolution or
liquidation of the Company, the Board of Directors may in its sole discretion (i) provide a 30-day period prior to such event during which optionees shall have the right to exercise options and stock appreciation rights in whole or in part
without any limitation on exercisability and upon the expiration of which 30-day period all unexercised options and stock appreciation rights shall immediately terminate, or (ii) waive or modify any restriction on the options or stock
appreciation rights. 
 13. Corporate Mergers, Acquisitions, etc. The Board of Directors may also grant options, stock appreciation
rights, stock bonuses and cash bonuses and issue restricted stock under the Plan having terms, conditions and provisions that vary from those specified in this Plan provided that any such awards are granted in substitution for, or in connection with


  

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the assumption of, existing options, stock appreciation rights, stock bonuses, cash bonuses and restricted stock granted, awarded or issued by another
corporation and assumed or otherwise agreed to be provided for by the Company pursuant to or by reason of a transaction involving a corporate merger, consolidation, acquisition of property or stock, separation, reorganization or liquidation to which
the Company or a subsidiary is a party. 
 14. Acceleration in Certain Events. 
 Notwithstanding any other provisions of the Plan, a special acceleration (“Special Acceleration”) of all options and stock
appreciation rights outstanding under the Plan shall occur and such options and stock appreciation rights shall immediately become exercisable in full at any time when any one of the following events has taken place: 
 (a) The shareholders of the Company approve one of the following (“Approved Transactions”): 
 (i) Any consolidation, merger or plan of exchange involving the Company (“Merger”) pursuant to which Common Stock would be
converted into cash; or 
 (ii) Any sale, lease, exchange, or other transfer (in one transaction or a series of related
transactions) of all or substantially all of the assets of the Company; or 
 (iii) The adoption of any plan or proposal for
the liquidation or dissolution of the Company; or 
 (iv) Any merger, consolidation or plan of exchange which results in the
voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) 50% or less of the combined voting power of the
voting securities of the Company or such surviving entity outstanding immediately after such merger, consolidation or exchange; or 
 (v) Any merger, consolidation or plan of exchange effected to implement a recapitalization of the Company (or similar transaction) in which a person acquires more than 20% of the combined voting power of the Company’s then outstanding
securities; or 
 (b) A tender or exchange offer, other than one made by the Company, is made for Common Stock (or securities
convertible into Common Stock) and such offer results in a portion of those securities being purchased and the offeror after the consummation of the offer is the beneficial owner (as determined pursuant to Section 13(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)), directly or indirectly, of more than 20 percent of the outstanding Common Stock (an “Offer”); or 
  

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 (c) Any Person is or becomes the beneficial owner of more than 20 percent of the
Company’s outstanding Common Stock; or 
 (d) During any period of two consecutive years, individuals who at the
beginning of such period constituted a majority of the Board of Directors cease for any reason to constitute a majority thereof unless the nomination or election of such new directors was approved by a vote of at least two-thirds of the directors
then still in office who were directors at the beginning of such period. 
 All options and stock appreciation rights that are
accelerated pursuant to this paragraph 14 shall terminate upon the dissolution of the Company or upon the consummation of any Merger pursuant to which Common Stock would be converted to cash. The terms used in this paragraph 14 and not defined
elsewhere in the Plan shall have the same meanings as such terms have in the Exchange Act and the rules and regulations adopted thereunder. 
 15. Amendment of Plan. The Board of Directors may at any time, and from time to time, modify or amend the Plan in such respects as it shall deem advisable because of changes in the law while the Plan is in effect or for any other
reason. Except as provided in paragraphs 6(a)(iv), 9, 12 and 14, however, no change in an award already granted shall be made without the written consent of the holder of such award. 
 16. Approvals. The obligations of the Company under the Plan are subject to the approval of state and federal authorities or agencies with
jurisdiction in the matter. The Company will use its best efforts to take steps required by state or federal law or applicable regulations, including rules and regulations of the Securities and Exchange Commission and any stock exchange on which the
Company’s shares may then be listed, in connection with the grants under the Plan. The foregoing notwithstanding, the Company shall not be obligated to issue or deliver Common Stock under the Plan if such issuance or delivery would violate
applicable state or federal securities laws. 
 17. Employment Rights. Nothing in the Plan or any award pursuant to the Plan shall
confer upon any employee any right to be continued in the employment of the Company or any subsidiary or interfere in any way with the right of the Company or any subsidiary by whom such employee is employed to terminate such employee’s
employment at any time, for any reason, with or without cause, or to decrease such employee’s compensation or benefits. 
 18. Rights
as a Shareholder. The recipient of any award under the Plan shall have no rights as a shareholder with respect to any Common Stock until the date of issue to the recipient of a stock certificate for such shares. Except as otherwise expressly
provided in the Plan, no adjustment shall be made for dividends or other rights for which the record date occurs prior to the date such stock certificate is issued. 
  

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