Document:

Employment Agreement

 Exhibit 10.1 
  
 EMPLOYMENT AGREEMENT 
  

This Employment Agreement (the “Agreement”) is entered into as of January 20, 2006 by and between Leadis Technology, Inc.,
a Delaware corporation (the “Company”), and Jose Arreola (the “Executive”). 
  
 In consideration of the promises and the terms and conditions set forth in this Agreement, the parties agree as follows: 
  
 1. Position and Duties. 
  
 (a) Executive Vice President. Executive shall begin employment as
Executive Vice President, Engineering of the Company on January 20, 2006. Executive shall report to the Chief Executive Officer of the Company and will have all duties, authorities and expectations customary for an executive vice president of
engineering. Executive shall devote his full business time, skill and attention to the performance of his duties on behalf of the Company. 
  
 2. Salary and Bonus. 
  
 (a) Salary. Executive will be paid an annual salary of $250,000, payable as earned in accordance with the Company’s customary payroll practice
and subject to required deductions and withholdings. 
  
 (b)
Bonus. Executive will be eligible to receive a target bonus of up to 40% of his base salary per year in the event the Board or the Company’s Compensation Committee determines in its sole discretion that Executive and the Company have
achieved the performance objectives as set by the Board. The Board or Compensation Committee will have the sole discretion to determine whether such bonuses are earned and, if so, the amount of any such bonus. Any bonuses provided to Executive will
be subject to required deductions and withholdings. 
  
 3. Stock Options.
 
  
 Subject to approval by the Board, Executive will be
granted a stock option to purchase 280,000 shares of the Company’s Common Stock at an exercise price equal to the then current fair market value per share on the date of grant (the “Option”). Subject to the accelerated
vesting provisions set forth herein, the Option will vest as to 25% of the shares subject to the Option one year after the date Executive begins employment with the Company, and as to l/48th of the shares subject to the Option monthly thereafter, so
that the Option will be fully vested and exercisable four (4) years from the date of grant, subject to Executive’s continued service to the Company on the relevant vesting dates. No right to any option shares subject to the Option or any
other option grant received by the Executive shall be earned or accrued until such time that vesting occurs. The Option shall have a term of six (6) years. The Option will be subject to the terms, definitions and provisions of any applicable
Company stock option plan (the “Option Plan”), if the Option is issued pursuant to a plan, and one or more stock option agreements by and between Executive and the Company (collectively, the “Option
Agreement”), which documents are incorporated herein by reference. 
  
 4. Benefits and Expenses. 
  
 (a)
Benefits. While employed hereunder, Executive will be entitled to participate in the employee benefit plans currently and hereafter maintained by the Company of general applicability to other senior executives of the Company, including,
without limitation, the Company’s group medical, dental, vision, disability, life insurance and vacation plans. The Company reserves the right to cancel or change the benefit plans and programs it offers to its employees at any time.

  

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 (b) Expenses. The Company will reimburse Executive for all reasonable and necessary expenses
incurred by Executive in connection with the Company’s business, in accordance with any applicable policy established by the Company from time to time. 
  
 5. At-Will-Employment. 
  
 Executive will be an at-will employee of the Company, which means the employment relationship can be terminated by either Executive or the Company at any
time, with or without prior notice, and with or without cause. Any statements or representations to the contrary are ineffective. Any modification or change in Executive’s at-will employment status may only occur by way of a written employment
agreement signed by Executive and the Company. 
  
 6. International
Assignment. 
  
 In fulfillment of his duties as Executive
Vice President, Engineering, it is the parties’ expectations that Executive will spend a substantial amount of time working out of the Company’s Korea office. In connection with this international assignment, the Company will provide the
following benefits to Executive. 
  
 (a) Housing. The
Company shall provide Executive with the use of a Company-leased apartment in Korea, as necessary. 
  
 (b) Tax Equalization. As necessary, the Company will provide tax equalization to Executive to (i) ensure that no additional tax liability or
benefit as a result of having an assignment outside the US is effected, and (ii) provide assistance to ensure compliance with US expatriate tax laws as well as the tax laws of the host country. Executive shall be responsible for paying any tax
liabilities incurred as a result of his employment with the Company. Executive acknowledges that equity income is specifically excluded from tax equalization, and any worldwide taxes generated as a result of Executive’s exercise of stock
options or receipt of restricted stock while on assignment will be Executive’s sole responsibility. 
  
 (c) Relocation/Family Visitation Expenses. The Company will provide Executive a lump sum of $15,000 to cover costs associated with his temporary
relocation to Korea and the cost of travel expenses incurred by Executive for the travel of family to Korea. 
  
 7. Severance. 
  
 (a) Termination Without Cause or Resignation for Good Reason. Notwithstanding Executive’s at-will employment status, if: (a) Executive’s employment with the Company is terminated without Cause (as defined below) or
Executive resigns his employment for Good Reason (as defined below) (a “Qualifying Termination”), and (b) Executive signs a general and complete release of any and all potential claims against the Company, its directors,
officers, employees, agents and affiliates in a form acceptable to the Company and allows such release to become effective; then in addition to any other amounts that may be due Executive: (i) the Company shall continue to pay Executive’s
then current salary, less required tax withholdings, payable on the Company’s normal payroll dates, for a period of 3 months following the date of such Qualifying Termination, (ii) should Executive timely elect to continue his health care
insurance benefits under federal COBRA law or similar state statutes, the Company shall pay the cost of continuing Executive’s then current health insurance coverage for a period of 3 months following the date of such Qualifying Termination,
and (iii) effective as of such Qualifying Termination, Executive shall automatically and without further action required on Executive’s part or the part of the 
  

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 Company receive 3 months of vesting acceleration with respect to each outstanding stock option held by Executive (but in
each case, not exceeding to the total number of shares that remain unvested under the relevant document or agreement) (collectively, the benefits as described in (i), (ii) and (iii) are referred to as the “Basic Severance
Compensation”). 
  
 (b) Termination Without Cause
or Resignation for Good Reason Following an Acquisition. If: (a) a Qualifying Termination occurs during the twenty-four (24) month period following the consummation of an Acquisition (as defined below), and (b) Executive signs a
general and complete release of any and all potential claims against the Company, its directors, officers, employees, agents and affiliates in a form acceptable to the Company and allows such release to become effective; then in addition to any
other amounts that may be due to Executive, but in lieu of the Basic Severance Compensation described above: (i) the Company shall continue to pay Executive’s then current salary, less required tax withholdings, payable on the
Company’s normal payroll dates, for a period of 6 months following the date of such Qualifying Termination, (ii) should Executive timely elect to continue his health care insurance benefits under federal COBRA law or similar state
statutes, the Company shall pay the cost of continuing Executive’s then current health insurance coverage for a period of 6 months following the date of such Qualifying Termination, and (iii) effective as of such Qualifying Termination,
Executive shall automatically and without further action required on Executive’s part or the part of the Company receive 24 months of vesting acceleration with respect to each outstanding stock option held by Executive (but in each case, not
exceeding to the total number of shares that remain unvested under the relevant document or agreement). 
  
 (c) Definitions. 
  
 (i) As used herein, an “Acquisition” means (1) a consolidation, merger or other reorganization of the Company with or into
any other entity or entities in which the holders of the Company’s outstanding shares immediately before such consolidation, merger or other reorganization do not, immediately after such consolidation, merger or reorganization, retain equity
interests representing a majority of the voting power of the surviving entity of such consolidation, merger or reorganization as a result of their shareholdings in the Company immediately prior to the consolidation, merger or reorganization,
(2) a sale of all or substantially all of the assets of the Company and its subsidiaries, on a consolidated basis (except in connection with an insolvency, bankruptcy or similar proceeding) or (3) the acquisition by any person (including
any corporation), directly or indirectly, of more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities. 
  

(ii) For purposes of this Agreement, “Cause” shall mean one or more of the following, as determined by the Board in its sole
discretion: (1) willful misconduct by Executive that is injurious to the Company’s reputation or business; (2) Executive’s violation of any federal, state or other law or regulation applicable to the Company’s business, or
of any Company policy; (3) any act of dishonesty, fraud or misrepresentation made by Executive in connection with his responsibilities as an employee of the Company; (4) Executive’s indictment with respect to a crime that negatively
reflects on Executive’s fitness to perform his duties or harms the Company’s reputation or business; and (5) a material breach of Executive’s obligations hereunder, or under any applicable invention assignment and/or
confidentiality agreement or similar agreement. 
  
 (iii) For
purposes of this Agreement, “Good Reason” means a resignation by Executive because any one or more the following occurs without his consent: (1) a material reduction in Executive’s salary (except for salary
reductions imposed upon all executive officers of the Company), (2) a material reduction in Executive’s responsibilities (provided no such reduction shall be deemed to have occurred solely by reason of the change in the Company’s
status from that of an independent company to that of a subsidiary of a successor of the Company following an Acquisition), (3) a relocation of Executive’s principal place of employment by more than 35 miles, and (4) a material breach
by the Company of its obligations under this Agreement that is not cured within 20 days of written notice to the Board thereof. 
  

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 (d) Deferred Compensation. In the event that any cash severance benefit or continued medical
benefit provided to Executive by the Company pursuant to this Agreement would fail to satisfy the distribution requirement of Section 409A(a)(2)(A) of the Internal Revenue Code of 1986, as amended (the “Code”) as a
result of the application of Section 409A(a)(2)(B)(i) of the Code, the payment of such benefits will be delayed to the minimum extent necessary so that such benefits are not subject to the provisions of Section 409A(a)(1) of the Code. The
Company shall attach conditions to or adjust the amounts paid pursuant to this paragraph to preserve, as closely as possible, the economic consequences that would have applied in the absence of this paragraph; provided, however, that no such
condition or adjustment shall result in the payments being subject to Section 409(A)(1) of the Code. 
  
 8. Miscellaneous. 
  
 (a) Confidential Information Agreement. Executive agrees to enter into the Company’s standard Agreement Regarding Confidential Information and Proprietary Developments (the “Confidential Information
Agreement”) upon commencing employment hereunder. 
  
 (b) Eligibility for Employment. For purposes of federal immigration law, Executive will be required to provide to the Company documentary evidence of eligibility for employment in the United States. Such documentation must be
provided to within three (3) business days of Executive’s date of hire, or Executive’s employment relationship with the Company may be terminated. 
  
 (c) Arbitration. To ensure the timely and economical resolution of disputes that arise in connection with
Executive’s employment with the Company, Executive and the Company agree that any and all disputes, claims, or causes of action arising from or relating to the enforcement, breach, performance or interpretation of this Agreement,
Executive’s employment, or the termination of Executive’s employment, shall be resolved to the fullest extent permitted by law by final, binding and confidential arbitration, by a single arbitrator, in Santa Clara County, California,
conducted by Judicial Arbitration and Mediation Services, Inc. (“JAMS”) pursuant to the JAMS rules for the resolution of employment disputes, or another mutually agreeable arbitration service, under the applicable employment
rules. By agreeing to this arbitration procedure, both Executive and the Company waive the right to resolve any such dispute through a trial by jury or judge or administrative proceeding. The arbitrator shall: (a) have the authority to compel
adequate discovery for the resolution of the dispute and to award such relief as would otherwise be permitted by law; and (b) issue a written arbitration decision, to include the arbitrator’s essential findings and conclusions and a
statement of the award. The arbitrator shall be authorized to award any or all remedies that Executive or the Company would be entitled to seek in a court of law. The Company shall pay all arbitration fees in excess of the amount of court fees that
would be required if the dispute were decided in a court of law. Nothing in this Agreement is intended to prevent either Executive or the Company from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any
such arbitration. Except with respect to the arbitration fees set forth above, in the event of any dispute between the parties to this Agreement, each party will be responsible for its own attorneys’ fees. 
  
 (d) Assignment. This Agreement will be binding upon and inure to the
benefit of (a) Executive’s heirs, executors and legal representatives upon Executive’s death and (b) any successor of the Company. Any such successor of the Company will be deemed substituted for the Company under terms of this
Agreement for all purposes. For this purpose, “successor” means any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires all or substantially all of
the assets or business of the Company. Executive’s rights to receive any form of compensation payable pursuant to this Agreement may not be assigned or transferred except by will or the laws of decent and distribution. Any other attempted
assignment, transfer, conveyance or other disposition of Executive’s right to compensation or other benefits will be null and void. 
  

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 (e) No Waiver. The failure by either party at any time to require performance or compliance by the
other of any of its obligations or agreements shall in no way affect the right to require such performance or compliance at any time thereafter. The waiver by either party of a breach of any provision hereof shall not be taken or held to be a waiver
of any preceding or succeeding breach of such provision or as a waiver of the provision itself. No waiver of any kind shall be effective or binding, unless it is in writing and is signed by the party against whom such waiver is sought to be
enforced. 
  
 (f) Entire Agreement. This Agreement,
together with the Option Plan, any Option Agreement and the Confidential Information Agreement represents the entire agreement and understanding between the parties as to the subject matter herein and supersedes all prior or contemporaneous
agreements whether written or oral. This Agreement only may be modified in a written amendment signed by the parties hereto. In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal,
unenforceable or void, this Agreement will continue in full force and effect without said provision. 
  
 (g) Governing Law. This Agreement and the rights and obligations of the parties hereto shall be construed in accordance with the laws of the State
of California, without giving effect to the principles of conflict of laws. 
  
 (h) Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original but all of which, taken together, constitute one and the same agreement. 

 

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 IN WITNESS WHEREOF, the Company and Executive have executed this Agreement as of the date first above written.

  
 LEADIS TECHNOLOGY, INC. 

	
	
	 /s/ Antonio R. Alvarez

	 Antonio R. Alvarez

	 President and Chief Executive Officer

	
	EXECUTIVE
	
	 /s/ Jose Arreola

	 Jose Arreola

  

 6Cygne Designs, Inc. 2006 Incentive Plan

 Exhibit 10.1 
  
 CYGNE DESIGNS, INC. 
 2006 INCENTIVE PLAN 
  
 1.
Purpose. The purpose of the Cygne Designs, Inc. 2006 Incentive Plan (the “Plan”) is to attract, motivate, reward and retain key personnel of Cygne Designs, Inc., a Delaware corporation, and its successors (the
“Company”), and affiliates through the use of equity-based and cash incentive compensation awards (“Awards”). 
  
 2. Aggregate Share Limitation. Subject to adjustment as provided in Section 12 below, the total number of shares of common stock, $.01 par value (the
“Common Stock”) which may be issued pursuant to the Plan shall not exceed 3,000,000 shares (the “Authorized Shares”). In determining the number of Authorized Shares available for issuance under the Plan at any time
after the Effective Date, the following shares be deemed not to have been issued (and will remain available for issuance) pursuant to the Plan: (i) shares subject to an Award that is forfeited, canceled, terminated or settled in cash,
(ii) shares repurchased by the Company from the recipient of an Award for not more than the original purchase price of such shares or forfeited to the Company by the recipient of an Award, and (iii) shares withheld or tendered by the
recipient of an Award as payment of the exercise or purchase price under an Award or the tax withholding obligations associated with an Award. 
  
 3. Annual Individual Award Limitations. Subject to adjustment as provided in Section 12 below, the maximum number of shares of Common Stock with respect to
which options or stock appreciation rights (“SARs”) may be granted during any calendar year to any employee is 600,000. With respect to performance-based Awards pursuant to Section 9 valued by reference to Common Stock at the
date of grant, subject to adjustment as provided in Section 12 below, the maximum number of shares of Common Stock that may be “earned” by any employee during any calendar year is 600,000. With respect to performance-based Awards
pursuant to Section 9 not valued by reference to Common Stock at the date of grant (so that the foregoing limitation would not operate as an effective limitation satisfying Treasury Regulation 1.162-27(e)(4)), the maximum amount that may be
“earned” by any employee during any calendar year is $1,000,000. Any “unused” portion of the annual limitation on performance-based Awards that may be “earned” by an employee shall be carried forward on a cumulative
basis. For purposes of applying the limitations of this Section 3, (i) an employee’s Award is “earned” upon satisfaction of the applicable performance condition(s), without regard to whether settlement of the Award is
deferred or remains subject to a continuing service or other non-performance based condition(s), and (ii) an employee’s annual performance limit is “used” at the time of grant of an Award, without regard to whether the Award is
subsequently “earned.” 
  
 4.
Administration. 
  
 (a) Committee. The Plan will be administered by
the Company’s Board of Directors (the “Board”) or a committee comprised of at least two (2) members of the Board (the Board in such capacity or such committee being referred to as the “Committee”). The
members of the Committee will be appointed by and serve at the pleasure of the Board. Notwithstanding the foregoing, the Board will have sole responsibility and authority for matters relating to the grant and administration of Awards to non-employee
directors of the Company, and reference herein to the Committee with respect to any such matters will be deemed to refer to the Board. 
  

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 (b) Responsibility and Authority of Committee. Subject to the provisions of the Plan, the Committee, acting in its
discretion, will have responsibility and full power and authority to (i) select the persons to whom Awards will be made, (ii) prescribe the terms and conditions of each Award and make amendments thereto, (iii) construe, interpret and
apply the provisions of the Plan and of any agreement or other document evidencing an Award made under the Plan, and (iv) make any and all determinations and take any and all other actions as it deems necessary or desirable in order to carry
out the terms of the Plan. In exercising its responsibilities under the Plan, the Committee may obtain at the Company’s expense such advice, guidance and other assistance from outside compensation consultants and other professional advisers as
it deems appropriate. 
  
 (c) Delegation of Authority. Subject to the
requirements of applicable law, the Committee may delegate to any person or group or subcommittee of persons (who may, but need not be, members of the Committee) such Plan-related functions within the scope of its responsibility, power and authority
as it deems appropriate. 
  
 (d) Committee Actions. A majority of the
members of the Committee shall constitute a quorum. The Committee may act by the vote of a majority of its members present at a meeting at which there is a quorum or by unanimous written consent. The decision of the Committee as to any disputed
question, including questions of construction, interpretation and administration, shall be final and conclusive on all persons. The Committee shall keep a record of its proceedings and acts and shall keep or cause to be kept such books and records
as may be necessary in connection with the proper administration of the Plan. 
  
 (e) Indemnification. The Company shall indemnify and hold harmless each member of the Board, the Committee or any subcommittee appointed by the Committee and any employee of the Company who provides assistance with the administration
of the Plan from and against any loss, cost, liability (including any sum paid in settlement of a claim with the approval of the Board), damage and expense (including reasonable legal fees and other expenses incident thereto and, to the extent
permitted by applicable law, advancement of such fees and expenses) arising out of or incurred in connection with the Plan, unless and except to the extent attributable to such person’s fraud or willful misconduct. 
  
 5. Eligibility. Awards may be granted under the Plan to present or future employees of
the Company or an affiliate of the Company and to directors of, or consultants to, the Company or an affiliate who are not employees, provided that incentive stock options (“Incentive Stock Options”) within the meaning of
Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), may only be granted to employees of the Company or a “subsidiary corporation” of the Company within the meaning of Section 424(f) of the
Code. 
  
 6. Stock Option Awards. Stock options granted under the Plan will
have such vesting and other terms and conditions as the Committee, acting in its discretion in accordance with the Plan, may determine, either at the time the option is granted or, if the holder’s rights are not adversely affected, at any
subsequent time. The Committee may impose restrictions on shares acquired upon, and/or make or impose such other arrangements or conditions as it deems appropriate for the deferral of income attributable to, the exercise of options granted under the
Plan. 
  

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 (a) Exercise Price. The exercise price per share of Common Stock covered by an option granted under the Plan may
not be less than the Fair Market Value (as defined in Section 11 below) of a share of Common Stock on the date the option is granted, provided that, in the case of an Incentive Stock Option granted to a “10% stockholder” within the
meaning of Section 422(b)(6) of the Code, the exercise price may not be less than 110% of the Fair Market Value of a share of Common Stock on the date the option is granted. 
  
 (b) Option Term. Unless sooner terminated in accordance with its terms, an option will automatically expire on the tenth anniversary
of the date it is granted (the fifth anniversary of the date it is granted in the case of an Incentive Stock Option granted to a “10% stockholder”). 
  

(c) Manner of Exercise. An outstanding and exercisable option may be exercised by transmitting to the Secretary of the Company (or other person designated for
this purpose by the Committee) a written notice identifying the option that is being exercised and specifying the number of shares to be purchased pursuant to that option, together with payment of the exercise price, and by satisfying the applicable
tax withholding obligations pursuant to Section 13. The Committee may establish such rules and procedures as it deems appropriate for the exercise of options under the Plan. The Committee, acting in its sole discretion, may permit the exercise
price to be paid in whole or in part in cash or by check, by means of a cashless exercise procedure, in the form of unrestricted shares of Common Stock (to the extent of the Fair Market Value thereof) or, subject to applicable law, by any other form
of consideration deemed appropriate. 
  
 (d) Rights as a Stockholder. No
shares of Common Stock will be issued in respect of the exercise of an option granted under the Plan until full payment therefor has been made and the applicable tax withholding obligation has been satisfied or provided for. The holder of an option
will have no rights as a stockholder with respect to any shares covered by an option until the date a stock certificate for such shares is issued to him or her. Except as otherwise provided herein, no adjustments shall be made for dividends or
distributions of other rights for which the record date is prior to the date such stock certificate is issued. 
  
 (e) Nontransferability of Options. No option granted under the Plan may be assigned or transferred except upon the option holder’s death to a beneficiary designated by the option holder in a manner
prescribed or approved for this purpose by the Committee or, if no designated beneficiary shall survive the option holder, pursuant to the option holder’s will or by the laws of descent and distribution; and each such option may be exercised
during the option holder’s lifetime only by the option holder. Notwithstanding the preceding sentence, the Committee may, in its sole discretion, permit an option holder to transfer an option (other than an Incentive Stock Option), in whole or
in part, to such persons and/or entities as are approved by the Committee from time to time and subject to such terms and conditions as the Committee may determine from time to time. 
  
 (f) Termination of Employment or Other Service. The Committee may establish such exercisability and other conditions applicable to an
option following the termination of the option holder’s employment or other service with the Company and its subsidiaries (“Termination of Service”) as the Committee deems appropriate on a grant-by-grant basis. 
  

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 (g) Limitation on Repricing of Options. Unless and except to the extent otherwise approved by the stockholders of
the Company, the “repricing” of options granted under the Plan shall not be permitted. For this purpose, “repricing” means: (i) amending the terms of an option after it is granted to lower its exercise price,
(ii) canceling an option at a time when its exercise price is equal to or greater than the Fair Market Value of the underlying shares, in exchange for another option, restricted stock or other equity award and (iii) any other action that
is treated as a repricing under generally accepted accounting principles; provided, however, that a cancellation, exchange or other modification to an option that occurs in connection with a merger, acquisition, spin-off or other corporate
transaction, including under Section 12 (relating to capital and other corporate changes) will not be deemed a repricing. 
  
 7. Stock Appreciation Rights. A stock appreciation right (“SAR”) constitutes a right of the holder to receive, in cash and/or shares of Common
Stock of equivalent value, as determined by the Committee in its sole discretion, an amount equal to the Fair Market Value of a share of Common Stock on the applicable exercise or designated settlement date minus a specified base price. SARs granted
under the Plan will have such vesting and other terms and conditions as the Committee, acting in its discretion in accordance with the Plan, may determine, either at the time the SAR is granted or, if the holder’s rights are not adversely
affected, at any subsequent time. The Committee may impose restrictions on the settlement of SARs, and/or make or impose such other arrangements or conditions as it deems appropriate for the deferral of income attributable to, the exercise of SARs
granted under the Plan. 
  
 (a) Types of SARs. SARs may be awarded in
conjunction with a stock option award (“tandem SARs”) or independent of any stock option award (“stand-alone SARs”). A tandem SAR may be awarded either at or after the time the related option award is granted,
provided that a tandem SAR awarded in conjunction with an Incentive Stock Option may only be awarded at the time the ISO is granted. 
  
 (b) Base Price. The base price per share of Common Stock covered by an SAR granted under the Plan may not be less than the Fair Market Value of a share of Common
Stock on the date the SAR is granted, provided that, in the case of a tandem SAR awarded in conjunction with an Incentive Stock Option granted to a “10% stockholder,” the base price may not be less than 110% of the Fair Market Value of a
share of Common Stock on the date the SAR is granted. 
  
 (c) SAR Term.
Unless sooner terminated in accordance with its terms, a stand-alone SAR will automatically expire on the tenth anniversary of the date it is granted and a tandem SAR will expire upon the expiration of the related option. 
  
 (d) Exercise of SARs. Except as otherwise provided herein, a tandem SAR will be
exercisable only at the same time and to the same extent and subject to the same conditions as the related option is exercisable. The exercise of a tandem SAR will terminate the related option to the extent of the shares of Common Stock with respect
to which the SAR is exercised, and vice versa. An outstanding and exercisable SAR may be exercised by transmitting to the Secretary of 
  

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 the Company (or other person designated for this purpose by the Committee) a written notice identifying the SAR that is
being exercised, specifying the number of shares covered by the exercise and containing such other information or statements as the Committee may require, and by satisfying the applicable tax withholding obligations pursuant to Section 13. The
Committee may establish such rules and procedures as it deems appropriate for the exercise of SARs under the Plan. Upon the exercise of an SAR (or designated settlement date, if applicable), the holder will be entitled to receive an amount, in cash
and/or shares of Common Stock as determined by the Committee, equal to the product of (i) the number of shares of Common Stock with respect to which the SAR is being exercised (or settled) and (ii) the difference between the Fair Market
Value of a share of Common Stock on the date the SAR is exercised (or settled) and the base price per share of the SAR. 
  
 (e) Nontransferability of SARs. No SARs granted under the Plan may be assigned or transferred except upon the SAR holder’s death to a beneficiary designated
by the SAR holder in a manner prescribed or approved for this purpose by the Committee or, if no designated beneficiary shall survive the SAR holder, pursuant to the SAR holder’s will or by the laws of descent and distribution; and each such
SAR may be exercised during the SAR holder’s lifetime only by the SAR holder. 
  
 (f) Termination of Employment or Other Service. The Committee may establish such exercisability and other conditions applicable to an SAR following the recipient’s Termination of Service as the Committee deems appropriate on a
grant-by-grant basis. 
  
 8. Restricted Stock and Restricted Stock Unit
Awards. The Committee may grant stock Awards upon such terms and conditions as the Committee, acting in its discretion in accordance with the Plan, may determine. A stock Award may take the form of the issuance and transfer to the recipient of
shares of restricted stock or a grant of restricted stock units representing a right to receive shares of Common Stock in the future and, in either case, may be subject to designated vesting conditions, repurchase rights and transfer restrictions.

  
 (a) Minimum Purchase Price. The purchase price payable for shares of
Common Stock transferred pursuant to a stock Award must be at least equal to their par value, unless other lawful consideration is received by the Company for the issuance of the shares or treasury shares are delivered in connection with the Award.

  
 (b) Stock Certificates for Restricted Stock. Restricted Stock may be
evidenced by book entries on the Company’s stock transfer records pending satisfaction of the applicable vesting conditions or such other method approved by the Committee. If a stock certificate for shares is issued before the restricted stock
vests, the certificate will bear an appropriate legend to reflect the nature of the conditions and restrictions applicable to the restricted stock, and the Company may require that any or all such stock certificates be held in custody by the Company
until the applicable conditions are satisfied and other restrictions lapse. The Committee may establish such other conditions as it deems appropriate in connection with the issuance of certificates for restricted stock, including, without
limitation, a requirement that the recipient deliver a duly signed stock power, endorsed in blank, for the shares covered by the Award. 
  

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 (c) Issuance of Stock Certificates Upon Vesting. The recipient of a restricted stock or restricted stock unit
award will be entitled to receive a certificate, free and clear of conditions and restrictions (except as may be imposed in order to comply with applicable law), for vested shares covered by the Award, subject, however, to the payment or
satisfaction of withholding tax obligations in accordance with Section 13. 
  
 (d) Rights as a Stockholder. Unless otherwise determined by the Committee, (i) the recipient of restricted stock will be entitled to receive dividend payments on the shares of restricted stock and the recipient of restricted
stock units will be entitled to receive dividend equivalent payments on or with respect to the shares that remain covered by the Award (which the Committee may specify are payable on a deferred basis and are forfeitable to the same extent as the
underlying Award), (ii) the recipient of restricted stock may exercise voting rights, and (iii) the recipient of restricted stock or restricted stock units will have no other rights as a stockholder with respect to such shares unless and
until the shares are issued to him free of all conditions and restrictions under the Plan. 
  
 (e) Nontransferability. With respect to any Award of restricted stock or restricted stock units, unless and until all applicable vesting conditions, if any, are satisfied and vested shares are issued, neither
the Award nor any shares of Common Stock issued pursuant to the Award may be sold, assigned, transferred, disposed of, pledged or otherwise hypothecated other than to the Company in accordance with the terms of the Award or the Plan. Any attempt to
do any of the foregoing before such time shall be null and void and, unless the Committee determines otherwise, shall result in the immediate forfeiture of the shares or the Award, as the case may be. 
  
 (f) Termination of Service Before Vesting; Forfeiture. Unless the Committee determines
otherwise, an Award of restricted stock or restricted stock units will be forfeited upon the recipient’s Termination of Service. If restricted stock is forfeited, any certificate representing shares will be canceled on the books of the Company
and the recipient will be entitled to receive from the Company an amount equal to any cash purchase price paid by him for such shares. If restricted stock units are forfeited, the recipient will have no further right to receive the shares of Common
Stock represented by such units. 
  
 9.
Performance-Based Awards. 
  
 (a) General. The Committee may condition
the grant, exercise, vesting or settlement of equity-based Awards on the achievement of specified performance goals in accordance with this Section 9. In addition, incentive Awards, including annual incentive Awards and long-term incentive
Awards, denominated as and paid in cash amounts, may be granted under this Section, which Awards may be earned by achievement of specified performance goals in accordance with this Section. The performance period during which achievement of such
performance goals may be measured may be any period specified by the Committee. 
  
 (b) Objective Performance Goals. A performance goal established in connection with an Award covered by this Section must be (1) objective, so that a third party having knowledge of the relevant facts could determine whether the
goal is met, (2) prescribed in writing by the Committee before the beginning of the applicable performance period or at such later date not 
  

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 later than 90 days after the commencement of the performance period when fulfillment is substantially uncertain and in
any event before completion of 25% of the performance period, and (3) based on any one or more of the following business criteria (which may be applied to an individual, a subsidiary, a business unit or division, or the Company and any one or
more of its subsidiaries, business units or divisions as a group, as determined by the Committee): 
  
 (i) total revenue or any key component thereof; 
  
 (ii) operating income, pre-tax or after-tax income from continuing operations, EBIT, EBITDA or net income; 
  
 (iii) cash flow (including, without limitation, free cash flow, cash flow return on
investment (discounted or otherwise), net cash provided by operations or cash flow in excess of cost of capital); 
  
 (iv) earnings per share or earnings per share from continuing operations (basic or diluted); 
  
 (v) return on capital employed, return on invested capital,
return on assets or net assets; 
  
 (vi)
after-tax return on stockholders’ equity; 
  
 (vii) economic value created; 
  
 (viii)
value of the Common Stock or total return to stockholders; 
  
 (ix) value of an investment in the Common Stock assuming the reinvestment of dividends; 
  
 (x) strategic business criteria, consisting of one or more objectives based on meeting specified market penetration goals, business expansion goals, implementation of
efficiencies or cost savings, cost targets, or goals relating to acquisitions or divestitures of subsidiaries, affiliates or joint ventures; and/or 
  
 (xi) a combination of any or all of the foregoing criteria. The targeted level or levels of performance with respect to such business criteria may be established at such
levels and on such terms as the Committee may determine, in its discretion, including in absolute terms, as a goal relative to performance in prior periods, or as a goal compared to the performance of one or more comparable companies or an index
covering multiple companies. If and to the extent permitted for Awards intended to qualify as “performance-based” under Section 162(m) of the Code, the Committee may provide for the adjustment of such performance goals to reflect
changes in accounting methods, corporate transactions (including, without limitation, dispositions and acquisitions) and other similar types of events or circumstances occurring during the applicable performance period. 
  
 (c) Calculation of Performance-Based Award. At the expiration of the applicable
performance period, the Committee shall determine the extent to which the performance goals established pursuant to this Section are achieved and the extent to which each performance-based Award has been earned. The Committee may not exercise its
discretion to enhance the value of an Award that is subject to performance-based conditions imposed under this Section. 
  

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 10. Other Equity-Based Awards. The Committee may grant dividend equivalent payment rights, phantom shares, bonus
shares and other forms of equity-based Awards to eligible persons, subject to such terms and conditions as it may establish. Awards made pursuant to this Section 10 may entail the transfer of shares of Common Stock to an Award recipient or the
payment in cash or otherwise of amounts based on the value of shares of Common Stock and may include, without limitation, Awards designed to comply with or take advantage of applicable tax and/or other laws. Without limiting the foregoing, in order
to comply with applicable foreign laws, the Committee may establish such sub-plans or programs (and apply for and obtain governmental or regulatory approvals or exemptions therefor) and modify exercise procedures and other terms and conditions
applicable to Awards as may be necessary or desirable under such laws. 
  
 11.
Fair Market Value. For Plan purposes, unless otherwise required by the Code or determined by the Committee, the “Fair Market Value” of a share of Common Stock on any date is: (a) if such Common Stock shall then be listed on
a national securities exchange, the last reported sale price or, if no such reported sale takes place on any such day, the average of the closing bid and asked prices on the principal national securities exchange on which the Common Stock is listed
or admitted to trading, (b) if such Common Stock shall not be listed to trading on a national securities exchange, then the average of the closing bid and asked prices for the over-the-counter market, or (c) if none of the foregoing is
applicable, then the fair market value of a share of Common Stock shall be determined in good faith by the Committee in its discretion. 
  

	12.	Capital Changes, Reorganization, Sale. 

  
 (a) Adjustments upon Changes in Capitalization. The aggregate number and class of shares issuable pursuant to the Plan, the maximum number of shares with respect
to which options, SARs or other performance-based equity Awards may be granted to or earned by any employee in any calendar year, the number and class of shares and the exercise price per share covered by each outstanding option, the number and
class of shares and the base price per share covered by each outstanding SAR, the number and class of shares covered by each outstanding restricted stock unit or other-equity-based Award and any per-share base or purchase price or target market
price included in the terms of any such Award and related terms shall all be adjusted proportionately or as otherwise appropriate to reflect any increase or decrease in the number of issued shares of Common Stock resulting from a split-up or
consolidation of shares or any like capital adjustment, or the payment of any stock dividend, and/or to reflect a change in the character or class of shares covered by the Plan arising from a readjustment or recapitalization of the Company’s
capital stock. 
  
 (b) Acceleration of Vesting Upon Change of Control. If
there is a “Change of Control” of the Company (as defined in subsection (f) below), then (i) all outstanding options and SARs shall become fully exercisable whether or not the vesting conditions, if any, set forth in the related
option or SAR agreements have been satisfied, and each holder of such Award shall have the right to exercise his or her options and/or SARs for as long thereafter as the option or SAR shall 
  

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 remain in effect in accordance with its terms and the provisions hereof, subject to Section 12(c) hereof, and
(ii) the Board, acting in its discretion, may accelerate vesting of all other non-vested Awards. 
  
 (c) Conversion of Options and SARs on Stock for Stock Exchange. If the stockholders of the Company receive capital stock of another corporation (“Exchange Stock”) in exchange for their shares
of Common Stock in any transaction involving a merger (other than a merger of the Company in which the holders of Common Stock immediately prior to the merger have the same proportionate ownership of common stock in the surviving corporation
immediately after the merger), consolidation, acquisition of property or stock, separation or reorganization (other than a mere reincorporation or the creation of a holding company) (an “Exchange Transaction”), all outstanding
options shall be converted into options to purchase shares of Exchange Stock and all outstanding SARs shall be converted into SARs relating to shares of Exchange Stock unless the Board, in its sole discretion, determines that all such options and/or
SARs shall instead terminate, in which case the Company shall notify the option holders and SAR holders in writing or electronically, at least fifteen days prior to the consummation of the Exchange Transaction, that the option and SAR holders shall
have the right, contingent upon the occurrence of the Exchange Transaction, to exercise all of his or her outstanding options and SARs in full (whether or not the vesting conditions, if any, set forth in the related option and SAR agreements have
been satisfied) for the period specified in the notice (but in any case not less than fifteen days from the date of such notice), provided that, if the Exchange Transaction does not take place within the specified period in the notice for any reason
whatsoever, the notice and any exercise pursuant thereto shall be null and void. The amount and exercise or base price of converted options and SARs shall be determined by adjusting the amount and price of the options and SARs granted hereunder in
the same proportion as used for determining the number of shares of Exchange Stock the holders of the Common Stock receive in such merger, consolidation, acquisition of property or stock, separation or reorganization. To the extent provided in
subsection (b) above, the converted options and SARs shall be fully vested whether or not the vesting requirements set forth in the option or SAR agreement have been satisfied. The Board, acting in its discretion, may provide for cash
settlement and/or make such other adjustments to the terms of any other outstanding Award as it deems appropriate in the context of an Exchange Transaction. 
  
 (d) Fractional Shares. In the event of any adjustment in the number of shares covered by any Award pursuant to the provisions hereof, any fractional shares
resulting from such adjustment will be disregarded and each such Award will cover only the number of full shares resulting from the adjustment. 
  
 (e) Determination of Board to be Final. All adjustments under this Section 12 shall be made by the Board, and its determination as to what adjustments shall
be made, and the extent thereof, shall be final, binding and conclusive. Unless an option holder agrees otherwise, any change or adjustment to an Incentive Stock Option shall be made in such a manner so as not to constitute a
“modification” as defined in Section 424(h) of the Code and so as not to cause the option holder’s Incentive Stock Option issued hereunder to fail to continue to qualify as an Incentive Stock Option. 
  

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 (f) Change of Control Defined. For purposes hereof, a “Change of Control” of the Company is
deemed to occur if (1) there occurs (A) any consolidation or merger in which the Company is not the continuing or surviving entity or pursuant to which shares of the Common Stock would be converted into cash, securities or other property,
other than (x) a consolidation or merger of the Company in which the holders of the Common Stock immediately prior to the consolidation or merger have the same proportionate ownership of common stock of the surviving corporation immediately
after the consolidation or merger, or (y) a consolidation or merger which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (by being converted into voting securities of the
continuing or surviving entity) more than 50% of the combined voting power of the voting securities of the surviving or continuing entity immediately after such consolidation or merger and which would result in the members of the Board immediately
prior to such consolidation or merger (including, for this purpose, any individuals whose election or nomination for election was approved by a vote of at least two-thirds of such members), constituting a majority of the board of directors (or
equivalent governing body) of the surviving or continuing entity immediately after such consolidation or merger; or (B) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially
all the Company’s assets; (2) the Company’s stockholders approve any plan or proposal for the liquidation or dissolution of the Company; (3) any person (as such term is used in Sections 13(d) and 14(d)(2) of the Securities
Exchange Act of 1934, as amended) shall become the beneficial owner (within the meaning of Rule 13d-3 under said Act) of 40% or more of the Common Stock other than pursuant to a plan or arrangement entered into by such person and the Company; or
(4) during any period of two consecutive years, individuals who at the beginning of such period constitute the entire Board shall cease for any reason to constitute a majority of the Board unless the election or nomination for election by the
Company’s stockholders of each new director was approved by a vote of at least two-thirds of the directors then still in office who were directors at the beginning of the period. 
  
 13. Tax Withholding. As a condition to the exercise of any Award, the delivery of any shares of Common Stock pursuant to any Award,
the lapse of restrictions on any Award or the settlement of any Award, or in connection with any other event that gives rise to a federal or other governmental tax withholding obligation on the part of the Company or an affiliate relating to an
Award (including, without limitation, an income tax deferral arrangement pursuant to which employment tax is payable currently), the Company and/or the affiliate may (a) deduct or withhold (or cause to be deducted or withheld) from any payment
or distribution to an Award recipient whether or not pursuant to the Plan or (b) require the recipient to remit cash (through payroll deduction or otherwise), in each case in an amount sufficient in the opinion of the Company to satisfy such
withholding obligation. If the event giving rise to the withholding obligation involves a transfer of shares of Common Stock, then, at the sole discretion of the Committee, the recipient may satisfy the withholding obligation described under this
Section 13 by electing to have the Company withhold shares of Common Stock or by tendering previously-owned shares of Common Stock, in each case having a Fair Market Value equal to the amount of tax to be withheld (or by any other mechanism as
may be required or appropriate to conform with local tax and other rules); provided, however, that no shares may be withheld if and to the extent that such withholding would result in the recognition of additional accounting expense by the Company.

  

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 14. Amendment and Termination. The Board may amend or terminate the Plan. Except as otherwise provided in the Plan
with respect to equity changes, any amendment which would (a) increase the aggregate number of shares of Common Stock issuable under the Plan or the maximum number of shares with respect to which options, SARs or other equity Awards may be
granted to any employee in any calendar year, (b) modify the class of persons eligible to receive Awards under the Plan or (c) otherwise require stockholder approval under applicable law or exchange or market requirements, shall, to the
extent required by applicable law or exchange or market requirements, be subject to the approval of the Company’s stockholders. No amendment or termination may affect adversely any outstanding Award without the written consent of the Award
recipient. 
  

	15.	General Provisions. 

  
 (a) Shares Issued Under Plan. Shares of Common Stock available for issuance under the Plan may be authorized and unissued, held by the Company in its treasury or otherwise acquired for purposes of the Plan. No
fractional shares of Common Stock will be issued under the Plan. 
  
 (b)
Compliance with Law. The Company will not be obligated to issue or deliver shares of Common Stock pursuant to the Plan unless the issuance and delivery of such shares complies with applicable law, including, without limitation, the Securities
Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the requirements of any stock exchange or market upon which the Common Stock may then be listed, and shall be further subject to the approval of counsel for the Company
with respect to such compliance. 
  
 (c) Transfer Orders; Placement of
Legends. All certificates for shares of Common Stock delivered under the Plan shall be subject to such stock-transfer orders and other restrictions as the Company may deem advisable under the rules, regulations, and other requirements of the
Securities and Exchange Commission, any stock exchange or market upon which the Common Stock may then be listed, and any applicable federal or state securities law. The Company may cause a legend or legends to be placed on any such certificates to
make appropriate reference to such restrictions. 
  
 (d) No Employment or Other
Rights. Nothing contained in the Plan or in any Award agreement shall confer upon any recipient of an Award any right with respect to the continuation of his or her employment or other service with the Company or an affiliate or interfere in any
way with the right of the Company and its affiliates at any time to terminate such employment or other service or to increase or decrease, or otherwise adjust, the other terms and conditions of the recipient’s employment or other service.

  
 (e) Decisions and Determinations Final. Except to the extent rights or
powers under the Plan are reserved specifically to the discretion of the Board, the Committee shall have full power and authority to interpret the Plan and any Award agreement made under the Plan and to determine all issues which arise thereunder or
in connection therewith, and the decision of the Board or the Committee, as the case may be, shall be binding and conclusive on all interested persons. 
  
 (f) Nonexclusivity of the Plan. No provision of the Plan, and neither its adoption Plan by the 
  

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 Board or submission to the stockholders for approval, shall be construed as creating any limitations on the power of the
Board or a committee thereof to adopt such other incentive arrangements, apart from the Plan, as it may deem desirable, including incentive arrangements and Awards which do not qualify as “performance-based compensation” under
Section 162(m) of the Code. 
  
 16. Governing Law. All rights and
obligations under the Plan and each Award agreement or instrument shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to its principles of conflict of laws. 
  
 17. Term of the Plan. The Plan shall become effective on the date it is approved by
the Company’s stockholders (the “Effective Date”). Unless sooner terminated by the Board, the Plan shall terminate on the tenth anniversary of the Effective Date. The rights of any person with respect to an Award made under the
Plan that is outstanding at the time of the termination of the Plan shall not be affected solely by reason of the termination of the Plan and shall continue in accordance with the terms of the Award and of the Plan, as each is then in effect or is
thereafter amended. 
  

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