2000 Stock Option Plan, as amended



 Exhibit 10.7 
 The ProtoMold Company, Inc. 
 2000 Stock Option Plan 

(As Amended Through November 15, 2011) 
 1. Purpose. The purpose of this 2000 Stock Option Plan (the “Plan”) is to promote the interests of The ProtoMold Company, Inc., a Minnesota corporation (the “Company”),
and its shareholders by providing personnel of the Company and any parent or subsidiaries thereof, and any other individuals and entities who provide services to the Company or any parent or subsidiaries in the capacity of non-employee directors or
advisors or consultants, with an opportunity to acquire a proprietary interest in the Company and thereby develop a stronger incentive to put forth maximum effort for the continued success and growth of the Company. In addition, the opportunity to
acquire a proprietary interest in the Company will aid in attracting and retaining personnel of outstanding ability. 
 2.
Administration. 
 (a) General. This Plan shall be administered by a committee of two or more directors of
the Company (the “Committee”) appointed by the Company’s Board of Directors (the “Board”). If the Board has not appointed a committee to administer this Plan, then the Board shall constitute the Committee. The Committee
shall have the power, subject to the limitations contained in this Plan, to fix any terms and conditions for the grant or exercise of any award under this Plan. No director shall serve as a member of the Committee unless such director shall be a
“non-employee director” as that term is defined in Rule 16b-3 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or any successor statute or regulation comprehending the same subject
matter. A majority of the members of the Committee shall constitute a quorum for any meeting of the Committee, and the acts of a majority of the members present at any meeting at which a quorum is present or the acts approved in writing by a
majority of the members of the Committee shall be the acts of the Committee. Subject to the provisions of this Plan, the Committee may from time to time adopt such rules for the administration of this Plan as it deems appropriate. The decision of
the Committee on any matter affecting this Plan, or the rights and obligations arising under this Plan or any award granted hereunder, shall be final, conclusive and binding upon all persons, including without limitation the Company, shareholders
and optionees. 
 (b) Indemnification. To the full extent permitted by law, (i) no member of the Committee or person
to whom authority under this Plan is delegated shall be liable for any action, omission or determination taken or made in good faith with respect to this Plan or any award granted hereunder and (ii) the members of the Committee and each person
to whom authority under this Plan is delegated shall be entitled to indemnification by the Company against and from any loss incurred by such member or person by reason of any such actions and determinations. 

(c) Delegation of Authority. The Committee may delegate all or any part of its authority under this Plan to the Chief Executive
Officer of the Company for purposes of granting and administering awards granted to persons other than persons who are then subject to 







 
the reporting requirements of Section 16 of the Exchange Act (“Section 16 Individuals”). The Chief Executive Officer of the Company may, in turn, delegate all or a portion of the
delegated authority to such other officer or officers of the Company as the Chief Executive Officer may determine. 
 (d)
Action by Board. Notwithstanding subparagraph 2(a) above, any grant of awards hereunder to any director of the Company who is not an employee of the Company at the time of grant (“Non-Employee Director Award”), and any action
taken by the Company with respect to any Non-Employee Director Award, including any amendment thereto, and any acceleration of the vesting of any option constituting a Non-Employee Director Award, any extension of the time within which any option
constituting a Non-Employee Director Award may be exercised, any determination pursuant to paragraph 8 relating to the payment of the purchase price of Shares (as defined in paragraph 3 below) subject to an option constituting a
Non-Employee Director Award, or any action pursuant to paragraph 9 relating to the payment of withholding taxes, if any, through the use of Shares with respect to a Non-Employee Director Award shall be subject to prior approval by the Board.

 3. Shares. The shares that may be made subject to awards granted under this Plan shall be authorized and
unissued shares of Common Stock of the Company, $0.001 par value (“Shares,” and each individually a “Share”), and they shall not exceed 475,000 Shares in the aggregate, subject to adjustment as provided in paragraph 13,
below, except that, if any option lapses or terminates for any reason before such option has been completely exercised, the Shares covered by the unexercised portion of such option may again be made subject to options granted under this Plan. An
option may not be exercisable for a fraction of a Share. 
 4. Eligible Participants. Options may be granted under
this Plan to any employee of the Company, or any parent or subsidiary thereof, including any such person who is also an officer or director of the Company or any parent or subsidiary thereof. Non-statutory stock options (as defined in
subparagraph 5(a) below) also may be granted to (i) any employee of the Company, or any parent or subsidiary thereof, (ii) any director of the Company who is not an employee of the Company or any parent or subsidiary thereof,
(iii) other individuals or entities who are not employees but who provide services to the Company or a parent or subsidiary thereof in the capacity of an advisor or consultant, and (iv) any individual or entity that the Company desires to
induce to become an employee, advisor or consultant, but any such grant shall be contingent upon such individual or entity becoming employed by the Company or a parent or subsidiary thereof. References herein to “employment” and similar
terms (except “employee”) shall include the providing of services in the capacity of an advisor or consultant or as a director. The employees and other individuals and entities to whom options may be granted pursuant to this
paragraph 4 are referred to herein as “Eligible Participants.” 
 5. Terms and Conditions of
Options. 
 (a) General. Subject to the terms and conditions of this Plan, the Committee may, from time to time
during the term of this Plan, grant to such Eligible Participants as the Committee may determine options to purchase such number of Shares of the Company on such terms and conditions as the Committee may determine. In determining the Eligible
Participants 

  
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to whom options shall be granted and the number of Shares to be covered by each option, the Committee may take into account the nature of the services rendered by the respective Eligible
Participants, their present and potential contributions to the success of the Company, and such other factors as the Committee in its sole discretion may deem relevant. The date and time of approval by the Committee of the granting of an option
shall be considered the date and the time of the grant of such option. The Committee in its sole discretion may designate whether an option granted to an employee is to be considered an “incentive stock option” (as that term is defined in
Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), or any amendment thereto) or a non-statutory stock option (an option granted under this Plan that is not intended to be an “incentive stock option”).
The Committee may grant both incentive stock options and non-statutory stock options to the same employee. However, if an incentive stock option and a non-statutory stock option are awarded simultaneously, such options shall be deemed to have been
awarded in separate grants, shall be clearly identified, and in no event shall the exercise of one such option affect the right to exercise the other. To the extent that the aggregate Fair Market Value (as defined in paragraph 7 below) of
Shares with respect to which incentive stock options are exercisable for the first time by any employee during any calendar year (under all incentive stock option plans of the Company and its parent and subsidiary corporations) exceeds $100,000,
such options shall be treated as non-statutory stock options. Notwithstanding the foregoing, no incentive stock option may be granted under this Plan unless this Plan is approved by the shareholders of the Company within twelve months after the
effective date of this Plan. 
 (b) Purchase Price. The purchase price of each Share subject to an option granted
pursuant to this paragraph 5 shall be fixed by the Committee, subject, however, to the remainder of this subparagraph 5(b). For non-statutory stock options, such purchase price may be set at any price the Committee may determine. For
incentive stock options, such purchase price shall be no less than 100% of the Fair Market Value of a Share on the date of grant, provided that if such incentive stock option is granted to an employee who owns, or is deemed under Section 424(d)
of the Code to own, at the time such option is granted, stock of the Company (or of any parent or subsidiary of the Company) possessing more than 10% of the total combined voting power of all classes of stock therein (a “10% Shareholder”),
such purchase price shall be no less than 110% of the Fair Market Value of a Share on the date of grant. 
 (c) Vesting.
Each option agreement provided for in paragraph 6 shall specify when each option granted under this Plan shall become exercisable with respect to the Shares covered by the option. Notwithstanding the provisions of any option agreement
provided for in paragraph 6, the Committee may, in its sole discretion, declare at any time that any option granted under this Plan shall be immediately exercisable. 
 (d) Termination. Each option granted pursuant to this paragraph 5 shall expire, and all rights to purchase Shares thereunder shall terminate, on the earliest of: 

(i) ten years after the date such option is granted (or in the case of an incentive stock option granted to a 10%
Shareholder, five years after the date such option is granted) or on such date prior thereto as may be fixed by the Committee on or before the date such option is granted; 

  
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 (ii) the expiration of the period after the termination of the
optionee’s employment within which the option is exercisable as specified in paragraph 10(b) or 10(c), whichever is applicable (provided that the Committee may, in any option agreement provided for in paragraph 6 or by Committee
action with respect to any outstanding option, extend the periods specified in paragraph 10(b) and 10(c)); or 
 (iii) the date, if any, fixed for cancellation pursuant to paragraph 11(c) or 12 below. 
 6. Option Agreements. All options granted under this Plan shall be evidenced by a written agreement in such form or forms as the Committee may from time to time determine, which agreement
shall, among other things, designate whether the options being granted thereunder are non-statutory stock options or incentive stock options. 
 7. Fair Market Value. For purposes of this Plan, the “Fair Market Value” of a Share at a specified date shall, unless otherwise expressly provided in this Plan, mean the
closing or last sale price of a Share on the date immediately preceding such date or, if no sale of Shares shall have occurred on that date, on the next preceding day on which a sale of Shares occurred, on the Composite Tape for New York Stock
Exchange listed shares or, if Shares are not quoted on the Composite Tape for New York Stock Exchange listed shares, on the Nasdaq National Market or any similar system then in use or, if Shares are not included in the Nasdaq National Market or any
similar system then in use, on the Nasdaq SmallCap Market or any similar system then in use, provided that if the Shares in question are not quoted on any such system, Fair Market Value shall be what the Committee determines in good faith to be 100%
of the fair market value of a Share as of the date in question. Notwithstanding anything stated in this paragraph 7, if the applicable securities exchange or system has closed for the day by the time the determination is being made, all
references in this paragraph to the date immediately preceding the date in question shall be deemed to be references to the date in question. 
 8. Manner of Exercise of Options. 
 (a) General. A person
entitled to exercise an option granted under this Plan may, subject to its terms and conditions and the terms and conditions of this Plan, exercise it in whole at any time, or in part from time to time, by delivery to the Company at its principal
executive office, to the attention of its Secretary, of written notice of exercise, specifying the number of Shares with respect to which the option is being exercised and payment of the purchase price of the Shares. The granting of an option to a
person shall give such person no rights as a stockholder except as to Shares issued to such person. 
 (b) Payment. The
consideration to be paid for the Shares, including the method(s) of payment, shall be determined by the Committee (and in the case of an incentive stock option, shall be determined at the time of grant) and may consist entirely of (i) cash
(including check, bank draft or money order); (ii) delivery of optionee’s promissory note with such recourse, interest, security and redemption provisions as the Committee determines to be appropriate; (iii) cancellation of
indebtedness; (iv) delivery to the Company of unencumbered Shares already owned by the optionee for a period of six months having an aggregate Fair Market 

  
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Value on the date of exercise equal to the exercise price for the total number of Shares as to which the option is exercised; (v) authorization of the Company to retain from the total number
of Shares as to which the option is exercised that number of Shares having a Fair Market Value on the date of exercise equal to the exercise price for the total number of shares as to which the option is exercised; (vi) any combination of the
methods of payments described above; or (vii) such other consideration and method of payment for the issuance of Shares to the extent permitted under applicable law. Notwithstanding the foregoing, no person shall be permitted to pay any portion
of the purchase price with Shares, or by authorizing the Company to retain Shares upon exercise of the option, if the Committee, in its sole discretion, determines that payment in such manner is undesirable. Except for delivery of a promissory note
by an optionee as provided above, the purchase price of the Shares with respect to which an option is being exercised shall be payable in full at the time of exercise, provided that, to the extent permitted by law, the holder of an option may
simultaneously exercise an option and sell all or a portion of the Shares thereby acquired pursuant to a brokerage or similar relationship and use the proceeds from such sale to pay the purchase price of such Shares. 

9. Tax Withholding. Delivery of Shares upon exercise of any non-statutory stock option granted under this Plan shall be
subject to any required withholding taxes. A person exercising a non-statutory stock option may, as a condition precedent to receiving the Shares, be required to pay the Company a cash amount equal to the amount of any required withholdings. In lieu
of all or any part of such a cash payment, the Committee may, but shall not be required to, provide in any option agreement provided for in paragraph 6 (or provide by Committee action with respect to any outstanding option) that a person
exercising an option may cover all or any part of the required withholdings, and any additional withholdings up to the amount needed to cover the individual’s full FICA and federal, state and local income tax liability with respect to income
arising from the exercise of the option, through the delivery to the Company of unencumbered Shares, through a reduction in the number of Shares delivered to the person exercising the option or through a subsequent return to the Company of Shares
delivered to the person exercising the option (in each case, such Shares having an aggregate Fair Market Value on the date of exercise equal to the amount of the withholding taxes being paid through such delivery, reduction or subsequent return of
Shares). 
 10. Transferability and Termination of Employment. 

(a) Transferability. During the lifetime of an optionee, only such optionee or his or her guardian or legal representative may
exercise options granted under this Plan, and no option granted under this Plan shall be assignable or transferable by the optionee otherwise than by will or the laws of descent and distribution or, with respect only to non-statutory stock options,
pursuant to a domestic relations order as defined by the Code or Title I of the Employee Retirement Income Security Act, or the rules thereunder; provided, however, that any optionee may transfer a non-statutory stock option granted under this
Plan to a member or members of his or her immediate family (i.e., his or her children, grandchildren and spouse) or to one or more trusts for the benefit of such family members or partnerships in which such family members are the only partners, if
(i) the option agreement with respect to such options expressly so provides either at the time of initial grant or by amendment to an outstanding option agreement and (ii) the optionee does not receive any consideration for the transfer.
Any options held by any such 

  
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transferee shall continue to be subject to the same terms and conditions that were applicable to such options immediately prior to their transfer and may be exercised by such transferee as and to
the extent that such option has become exercisable and has not terminated in accordance with the provisions of the Plan and the applicable option agreement. For purposes of any provision of this Plan relating to notice to an optionee or to vesting
or termination of an option upon the death, disability or termination of employment of an optionee, the references to “optionee” shall mean the original grantee of an option and not any transferee. 

(b) Termination of Employment During Lifetime. During the lifetime of an optionee who is an employee of the Company or any parent
or subsidiary thereof at the time of grant of an option, an option granted to such optionee may be exercised only while the optionee is employed by the Company or by a parent or subsidiary thereof, and only if such optionee has been continuously so
employed since the date the option was granted, except that: 
 (i) an option shall continue to be exercisable
for three months after termination of the optionee’s employment but only to the extent that the option was exercisable immediately prior to such optionee’s termination of employment; 

(ii) in the case of an optionee who is disabled (as hereinafter defined) while employed, an option shall continue to be
exercisable for one year after termination of such optionee’s employment; and 
 (iii) as to any optionee
whose termination occurs following a declaration pursuant to paragraph 12 below, an option may be exercised at any time permitted by such declaration. 
 (c) Termination Upon Death. With respect to an optionee whose employment terminates by reason of death, any option granted to such optionee may be exercised within one year after the death of such
optionee. 
 (d) Vesting Upon Disability or Death. In the event of the disability (as hereinafter defined) or death of an
optionee, any option granted to such optionee that was not previously exercisable shall become immediately exercisable in full if the disabled or deceased optionee shall have been continuously employed by the Company or a parent or subsidiary
thereof between the date such option was granted and the date of such disability or death. “Disability” of an optionee shall mean any physical or mental incapacitation whereby such optionee is therefore unable for a period of twelve
consecutive months or for an aggregate of twelve months in any twenty-four consecutive month period to perform his or her duties for the Company or any parent or subsidiary thereof. “Disabled,” with respect to any optionee, shall mean that
such optionee has incurred a Disability. 
 (e) Transfers and Leaves of Absence. Neither the transfer of employment of a
person to whom an option is granted between any combination of the Company, a parent corporation or a subsidiary thereof, nor a leave of absence granted to such person and approved by the Committee, shall be deemed a termination of employment for
purposes of this Plan. The terms “parent” or “parent corporation” and “subsidiary” as used in this Plan shall have the 

  
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meaning ascribed to “parent corporation” and “subsidiary corporation”, respectively, in Sections 424(e) and (f) of the Code. 

(f) Right to Terminate Employment. Nothing contained in this Plan, or in any option granted pursuant to this Plan, shall confer
upon any optionee any right to continued employment by the Company or any parent or subsidiary of the Company or limit in any way the right of the Company or any such parent or subsidiary to terminate such optionee’s employment at any time.

 (g) Expiration Date. In no event shall any option be exercisable at any time after the time it shall have expired in
accordance with paragraph 5(d) of this Plan. When an option is no longer exercisable, it shall be deemed to have lapsed or terminated and will no longer be outstanding. 
 11. Change in Control. For purposes of this Plan, a “Change in Control” of the Company shall be deemed to occur if any of the following occur: 

(a) Definition. 
 (1) Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) acquires or becomes a “beneficial owner” (as defined in Rule 13d-3 or any successor
rule under the Exchange Act), directly or indirectly, of securities of the Company representing 30% or more (or, for Options granted on or after January 22, 2007, more than 50%) of the combined voting power of the Company’s then
outstanding securities entitled to vote generally in the election of directors (“Voting Securities”), provided, however, that the following shall not constitute a Change in Control pursuant to this paragraph (a)(1): 

 

	 	(A)	any acquisition of Shares or Voting Securities of the Company directly from the Company; 


 

	 	(B)	any acquisition or beneficial ownership by the Company or a subsidiary; 

  

	 	(C)	any acquisition or beneficial ownership by any employee benefit plan (or related trust) sponsored or maintained by the Company or one or more of its subsidiaries;


  

	 	(D)	any acquisition or beneficial ownership by any corporation with respect to which, immediately following such acquisition, more than 70% of both the combined voting
power of the Company’s then outstanding Voting Securities and the Shares of the Company is then beneficially owned, directly or indirectly, by all or substantially all of the persons who beneficially owned Voting Securities and Shares of the
Company immediately prior to such acquisition in substantially the same proportions as their ownership of such Voting Securities and Shares, as the case may be, immediately prior to such acquisition; 


  
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 (2) A majority of the members of the Board of Directors of the Company shall
not be Continuing Directors. “Continuing Directors” shall mean: (A) individuals who, on the date hereof, are directors of the Company, (B) individuals elected as directors of the Company subsequent to the date hereof for whose
election proxies shall have been solicited by the Board of Directors of the Company or (C) any individual elected or appointed by the Board of Directors of the Company to fill vacancies on the Board of Directors of the Company caused by death
or resignation (but not by removal) or to fill newly-created directorships; 
 (3) Approval by the shareholders
of the Company of a reorganization, merger or consolidation of the Company or a statutory exchange of outstanding Voting Securities of the Company, unless, immediately following such reorganization, merger, consolidation or exchange, all or
substantially all of the persons who were the beneficial owners, respectively, of Voting Securities and Shares of the Company immediately prior to such reorganization, merger, consolidation or exchange beneficially own, directly or indirectly, more
than 70% of, respectively, the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors and the then outstanding shares of common stock, as the case may be, of the corporation resulting
from such reorganization, merger, consolidation or exchange in substantially the same proportions as their ownership, immediately prior to such reorganization, merger, consolidation or exchange, of the Voting Securities and Shares of the Company, as
the case may be; or 
 (4) Approval by the shareholders of the Company of (x) a complete liquidation or
dissolution of the Company or (y) the sale or other disposition of all or substantially all of the assets of the Company (in one or a series of transactions), other than to a corporation with respect to which, immediately following such sale or
other disposition, more than 70% of, respectively, the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors and the then outstanding shares of common stock of
such corporation is then beneficially owned, directly or indirectly, by all or substantially all of the persons who were the beneficial owners, respectively, of the Voting Securities and Shares of the Company immediately prior to such sale or other
disposition in substantially the same proportions as their ownership, immediately prior to such sale or other disposition, of the Voting Securities and Shares of the Company, as the case may be. 

(b) Acceleration of Vesting. If so provided in an option agreement provided for in paragraph 6 or by Committee action with
respect to any outstanding option, and notwithstanding anything in subparagraph 5(c) above to the contrary, if a Change in Control of the Company shall occur, then, such option, if not already exercised in full or otherwise terminated, expired
or cancelled, shall become immediately exercisable in full and shall remain exercisable during the remaining term thereof. 

  
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 (c) Cash Payment. If a Change in Control of the Company shall occur, then, so long as
a majority of the members of the Board are Continuing Directors, the Committee, in its sole discretion, and without the consent of the holder of any option affected thereby, may determine that some or all outstanding options shall be cancelled as of
the effective date of any such Change in Control and that the holder or holders of such cancelled options shall receive, with respect to some or all of the Common Shares subject to such options, as of the date of such cancellation, cash in an
amount, for each Share subject to an option, equal to the excess of the per Share Fair Market Value of such Shares immediately prior to such Change in Control of the Company over the exercise price per Share of such options. 

(d) Limitation on Change in Control Payments. Notwithstanding anything to the contrary in subparagraph 11(b) or 11(c) above or
paragraph 12 below, if any payments to an optionee pursuant to Options awarded under this Plan (including, for this purpose, the acceleration of the vesting and exercisability of any Option or the payment of cash or other property in exchange for
all or part of any Option), taken together with any payments and benefits otherwise paid or distributed to the optionee by the Company or any corporation that is a member of an “affiliated group” (as defined in Section 1504 of the
Code without regard to Section 1504(b) of the Code) of which the Company is a member (the “other arrangements”) would collectively constitute a “parachute payment” (as defined in Section 280G(b)(2) of the Code), and if
the net after-tax amount of such parachute payment to the optionee is less than what the net after-tax amount to the optionee would be if the aggregate payments and benefits otherwise constituting the parachute payment were limited to three times
the optionee’s “base amount” (as defined in Section 280G(b)(3) of the Code) less $1.00, then the aggregate payments and benefits otherwise constituting the parachute payment shall be reduced to an amount that shall equal three
times the optionee’s base amount, less $1.00. Should such a reduction in payments and benefits be required, the optionee shall be entitled, subject to the following sentence, to designate those payments and benefits under this Plan or the other
arrangements that will be reduced or eliminated (including, as applicable, a reduction in the number of Shares subject to Options that will vest on an accelerated basis) so as to achieve the specified reduction in aggregate payments and benefits to
the optionee and avoid characterization of such aggregate payments and benefits as a parachute payment. To the extent that the optionee’s ability to make such a designation would cause any of the payments and benefits to become subject to any
additional tax under Code Section 409A, or if the optionee fails to make such a designation within the time prescribed by the Committee, then the Committee shall achieve the necessary reduction in such payments and benefits by first reducing or
eliminating the portion of the payments and benefits that are payable in cash and then by reducing or eliminating the non-cash portion of the payments and benefits, in each case in reverse order beginning with payments and benefits which are to be
paid or provided the furthest in time from the date of the Committee’s determination. For purposes of this paragraph 11(d), a net after-tax amount shall be determined by taking into account all applicable income, excise and employment taxes,
whether imposed at the federal, state or local level, including the excise tax imposed under Section 4999 of the Code.” 
 12. Dissolution, Liquidation, Merger. In the event of (a) the proposed dissolution or liquidation of the Company, (b) a proposed sale of substantially all of the assets of the
Company or (c) a proposed merger, consolidation of the Company with or into any other entity, regardless of 

  
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whether the Company is the surviving corporation, or a proposed statutory share exchange with any other entity (the actual effective date of the dissolution, liquidation, sale, merger,
consolidation or exchange being herein called an “Event”), the Committee shall either (i) if the Event is a merger, consolidation or statutory share exchange, make appropriate provision for the protection of outstanding options
granted under this Plan by the substitution, in lieu of such options, of options to purchase appropriate voting common stock (the “Survivor’s Stock”) of the corporation surviving any such merger or consolidation or, if appropriate,
the parent corporation of the Company or such surviving corporation, or, alternatively, by the delivery of a number of shares of the Survivor’s Stock which has a Fair Market Value as of the effective date of such merger, consolidation or
statutory share exchange equal to the product of (x) the excess of (A) the Event Proceeds per Share (as hereinafter defined) covered by the option as of such effective date over (B) the exercise price per Share of the Shares subject
to such option, times (y) the number of Shares covered by such option, or (ii) declare, at least twenty days prior to the Event, and provide written notice to each optionee of the declaration, that each outstanding option, whether or not
then exercisable, shall be cancelled at the time of, or immediately prior to the occurrence of, the Event (unless it shall have been exercised prior to the occurrence of the Event). In connection with any declaration pursuant to clause (ii) of
the preceding sentence, the Committee may, but shall not be obligated to, cause payment to be made, within twenty days after the Event, in exchange for each cancelled option to each holder of an option that is cancelled, of cash equal to the amount
(if any), for each Share covered by the cancelled option, by which the Event Proceeds per Share (as hereinafter defined) exceeds the exercise price per Share covered by such option. At the time of any declaration pursuant to clause (ii) of the
first sentence of this paragraph 12, each option that has not previously expired pursuant to subparagraph 5(d)(i) or 5(d)(ii) of this Plan or been cancelled pursuant to paragraph 11(c) of this Plan shall immediately become exercisable
in full and each holder of an option shall have the right, during the period preceding the time of cancellation of the option, to exercise his or her option as to all or any part of the Shares covered thereby. In the event of a declaration pursuant
to clause (ii) of the first sentence of this paragraph 12, each outstanding option granted pursuant to this Plan that shall not have been exercised prior to the Event shall be cancelled at the time of, or immediately prior to, the Event,
as provided in the declaration, and this Plan shall terminate at the time of such cancellation, subject to the payment obligations of the Company provided in this paragraph 12. Notwithstanding the foregoing, no person holding an option shall be
entitled to the payment provided in this paragraph 12 if such option shall have expired pursuant to subparagraph 5(d)(i) or 5(d)(ii) of this Plan or been cancelled pursuant to paragraph 11(c) of this Plan. In addition, in the event of
the proposed dissolution or liquidation of the Company, the Committee may provide that any Company repurchase option applicable to the Shares shall lapse as to all such Shares, provided that the proposed dissolution or liquidation takes place at the
time and in the manner provided. For purposes of this paragraph 12, “Event Proceeds per Share” shall mean the cash plus the fair market value, as determined in good faith by the Committee, of the non-cash consideration to be received
per Share by the stockholders of the Company upon the occurrence of the Event. 
 13. Adjustments. In the event of
any reorganization, merger, consolidation, recapitalization, liquidation, reclassification, stock dividend, stock split, combination of shares, rights offering, or extraordinary dividend or divestiture (including a spin-off), or any other change in
the corporate structure or Shares of the Company, the Committee (or if the Company 

  
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does not survive any such transaction, a comparable committee of the Board of Directors of the surviving corporation) may, without the consent of any holder of an option, make such adjustment as
it determines in its discretion to be appropriate as to the number and kind of securities subject to and reserved under this Plan and, in order to prevent dilution or enlargement of rights of participants in this Plan, the number and kind of
securities issuable upon exercise of outstanding options and the exercise price thereof. 
 14. Substitute
Options. Options may be granted under this Plan from time to time in substitution for stock options held by employees of other corporations who are about to become employees of the Company, or any parent or subsidiary thereof, or whose
employer is about to become a subsidiary of the Company, as the result of a merger or consolidation of the Company or a subsidiary of the Company with another corporation, the acquisition by the Company or a subsidiary of the Company of all or
substantially all the assets of another corporation or the acquisition by the Company or a subsidiary of the Company of at least 50% of the issued and outstanding stock of another corporation. The terms and conditions of the substitute options so
granted may vary from the terms and conditions set forth in this Plan to such extent as the Board at the time of the grant may deem appropriate to conform, in whole or in part, to the provisions of the stock options in substitution for which they
are granted, but with respect to stock options which are incentive stock options, no such variation shall be permitted which affects the status of any such substitute option as an incentive stock option. 

15. Restrictions on Shares. At the discretion of the Committee, the Company may reserve to itself and its assignees in the
option agreement (a) a right of first refusal to purchase all Shares that an optionee (or a subsequent transferee) may propose to transfer to a third party, and (b) a right to repurchase a portion of or all Shares held by an optionee upon
the optionee’s termination of employment or service with the Company or its parent, subsidiary or affiliate for any reason within a specified time (but not to exceed ninety (90) days of the later of termination or exercise of the option,
if required by applicable laws), as determined by the Committee at the time of grant at the Fair Market Value of such Shares. 

16. Compliance With Legal Requirements. 
 (a) General. No certificate for Shares distributable under this Plan shall be issued and delivered unless the issuance of such certificate complies with all applicable legal requirements including,
without limitation, compliance with the provisions of applicable state securities laws, the Securities Act of 1933, as amended, and the Exchange Act. 
 (b) Rule 16b-3. With respect to Section 16 Individuals, transactions under this Plan are intended to comply with all applicable conditions of Rule 16b-3 or its successors under the
Exchange Act. To the extent any provision of this Plan or action by the Committee fails to so comply, it shall be deemed null and void, to the extent permitted by law and deemed advisable by the Committee. 

17. Governing Law. To the extent that federal laws do not otherwise control, this Plan and all determinations made and
actions taken under this Plan shall be governed by the laws 

  
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of the State of Minnesota, without regard to the conflicts of law provisions thereof, and construed accordingly. 
 18. Amendment and Discontinuance of Plan. The Board may at any time amend, suspend or discontinue this Plan; provided, however, that no amendment to this Plan shall, without the consent of
the holder of the option, alter or impair any option previously granted under this Plan. To the extent considered necessary to comply with applicable provisions of the Code, any such amendments to this Plan may be made subject to approval by the
shareholders of the Company. 
 19. Term. 

(a) Effective Date. This Plan shall be effective as of January 15, 2000. 

(b) Termination. This Plan shall remain in effect until all Shares subject to it are distributed or this Plan is terminated under
paragraph 18 above. No award of an incentive stock option shall be made under this Plan more than ten years after the effective date of this Plan (or such other limit as may be required by the Code) if such limitation is necessary to qualify
the option as an incentive stock option. 

  
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