Document:

EX-4.1

Table of Contents

 Exhibit 4.1 
 EXECUTION VERSION 
  

 
 FREEPORT-MCMORAN
OIL & GAS LLC, 
 Successor Issuer, 
 FCX OIL & GAS INC., 
 Co-Issuer, 

FREEPORT-MCMORAN COPPER & GOLD INC., 
 Parent Guarantor, 
 PLAINS EXPLORATION & PRODUCTION COMPANY,

 Original Issuer, 
 and 
 WELLS FARGO BANK, N.A., 

Trustee 

EIGHTEENTH SUPPLEMENTAL INDENTURE 
 Dated as of May 31, 2013 
 To 

INDENTURE 

Dated as of March 13, 2007 
  

 
  

Table of Contents

 Exhibit 4.1 
 TABLE OF CONTENTS 
  

 
  

					
	 	  	PAGE	 
	
	ARTICLE 1	  
	REPRESENTATIONS OF THE SUCCESSOR ISSUER, THE
CO-ISSUER, THE PARENT GUARANTOR
AND THE ORIGINAL ISSUER	 
  
		
	 Section 1.01. Good Standing
	  	 	3	  
	 Section 1.02. Authorization
	  	 	3	  
	 Section 1.03. No Default
	  	 	3	  
	 Section 1.04. Consolidated Net Worth
	  	 	3	  
	 Section 1.05. Without Consent of Holders
	  	 	4	  
	
	ARTICLE 2	  
	ASSUMPTION AND AGREEMENTS	  
		
	 Section 2.01. Assumption of Obligations
	  	 	4	  
	 Section 2.02. Notation of Securities
	  	 	4	  
	 Section 2.03. Discharge of Original Issuer
	  	 	4	  
	
	ARTICLE 3	  
	PARENT GUARANTEE	  
		
	 Section 3.01. The Parent Guarantee
	  	 	4	  
	 Section 3.02. Parent Guarantee Unconditional
	  	 	5	  
	 Section 3.03. Discharge Only Upon Payment in Full; Reinstatement in Certain Circumstances
	  	 	5	  
	 Section 3.04. Waiver by the Parent Guarantor
	  	 	6	  
	 Section 3.05. Subrogation
	  	 	6	  
	 Section 3.06. Stay of Acceleration
	  	 	6	  
	 Section 3.07. Notation of Parent Guarantee Not Required
	  	 	6	  
	 Section 3.08. Release of Parent Guarantor
	  	 	6	  
	 Section 3.09. Benefits Acknowledged
	  	 	6	  
	
	ARTICLE 4	  
	AMENDMENT OF INDENTURE	  
		
	 Section 4.01. Defined Terms
	  	 	7	  
	 Section 4.02. Amendment of Section 5.1 of the Indenture
	  	 	7	  
	 Section 4.03. Amendment of Section 5.2 of the Indenture
	  	 	10	  
	 Section 4.04. Amendment of Section 10.7 of the Indenture
	  	 	11	  
	
	ARTICLE 5	  
	MISCELLANEOUS	  
		
	 Section 5.01. General References
	  	 	12	  
	 Section 5.02. Effectiveness of Eighteenth Supplemental Indenture
	  	 	12	  

  
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	 Section 5.03. Indenture Remains in Full Force and Effect
	  	 	12	  
	 Section 5.04. Supplemental Indenture Controls
	  	 	13	  
	 Section 5.05. No Recourse Against Others
	  	 	13	  
	 Section 5.06. Notices and Demands
	  	 	13	  
	 Section 5.07. Benefits of Supplemental Indenture
	  	 	13	  
	 Section 5.08. Successors and Assigns
	  	 	14	  
	 Section 5.09. Severability
	  	 	14	  
	 Section 5.10. Governing Law
	  	 	14	  
	 Section 5.11. Counterparts
	  	 	14	  
	 Section 5.12. Headings
	  	 	14	  
	 Section 5.13. Obligations Under Indenture
	  	 	14	  
	 Section 5.14. Trustee Disclaimer
	  	 	14	  

  
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 EIGHTEENTH SUPPLEMENTAL INDENTURE, dated as of May 31, 2013 (this “Eighteenth
Supplemental Indenture”), by and among FREEPORT-MCMORAN OIL & GAS LLC (f/k/a IMONC LLC), a Delaware limited liability company (the “Successor Issuer”), FCX OIL & GAS INC., a Delaware corporation and the
direct wholly owned subsidiary of the Parent Guarantor (the “Co-Issuer”), FREEPORT-MCMORAN COPPER & GOLD INC., a Delaware corporation (the “Parent Guarantor”), PLAINS EXPLORATION & PRODUCTION
COMPANY, a Delaware corporation (the “Original Issuer”), and WELLS FARGO BANK, N.A., a nationally chartered banking association, as trustee under the Indenture referred to below (in such capacity, the “Trustee”).
All capitalized terms used herein but not otherwise defined herein shall have the respective meanings ascribed to such terms in the Indenture (as defined below). 
 RECITALS 
 WHEREAS, the Original Issuer, certain subsidiary guarantors and the
Trustee have heretofore executed and delivered an indenture, dated as of March 13, 2007 (as amended, supplemented or otherwise modified from time to time, including without limitation pursuant to this Eighteenth Supplemental Indenture, the
“Indenture”); 
 WHEREAS, the following series of Securities have been issued pursuant to the Indenture and are
outstanding as of the date of this Eighteenth Supplemental Indenture: the 7.625% Senior Notes due 2018, 8.625% Senior Notes due 2019, 7.625% Senior Notes due 2020, 6.625% Senior Notes due 2021, 6.75% Senior Notes due 2022, 6.125% Senior Notes due
2019, 6.50% Senior Notes due 2020 and 6.875% Senior Notes due 2023 (collectively, the “Outstanding Notes”); 

WHEREAS, each of Arguello Inc., Latigo Petroleum, Inc., Plains Acquisition Corporation, Plains Resources Inc., Pogo Partners, Inc., PXP
Producing Company LLC, PXP Aircraft LLC, PXP Gulf Coast LLC, PXP Louisiana L.L.C., PXP Louisiana Operations LLC and PXP Offshore LLC is a Restricted Subsidiary that is obligated under a Subsidiary Guarantee with respect to the Outstanding Notes as
of the date of this Eighteenth Supplemental Indenture (each, an “Existing Subsidiary Guarantor” and collectively, the “Existing Subsidiary Guarantors”); 

WHEREAS, pursuant to an Agreement and Plan of Merger, dated as of December 5, 2012 (as amended, supplemented or otherwise modified
to the date hereof, the “Merger Agreement”), by and among the Original Issuer, the Parent Guarantor and the Successor Issuer, the Original Issuer will be merged with and into the Successor Issuer, with the Successor Issuer
continuing as the surviving company and a direct wholly owned subsidiary of the Parent Guarantor (the “Merger” and the time at which the Merger becomes effective in accordance with Section 1.3 of the Merger Agreement, the
“Merger Effective Time”); 
 WHEREAS, prior to the date of this Eighteenth Supplemental Indenture, the Original
Issuer was designated the “Company” under the Indenture, and Section 8.1 of the Indenture provides, among other things, that the Company may merge into any other Person if the Person surviving any such merger is a limited liability
company organized 

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or existing under the laws of any state of the United States, such Person assumes all the obligations of the Company under the Securities and the Indenture pursuant to agreements reasonably
satisfactory to the Trustee and certain other conditions are complied with, provided that a corporate co-issuer shall be added to the Indenture by agreements reasonably satisfactory to the Trustee; 

WHEREAS, the parties hereto desire to amend the Indenture to, among other things, evidence the succession by each of the Successor Issuer
and the Co-Issuer to the Original Issuer and the assumption by each of the Successor Issuer and the Co-Issuer of all the obligations of the “Company” under the Securities and the Indenture as of the Merger Effective Time; 

WHEREAS, Section 14.5 of the Indenture provides, among other things, that each Guarantor will be released and relieved of any
obligations under its Subsidiary Guarantee with respect to any series of the Outstanding Notes at such time as such Guarantor does not have outstanding any Guarantee of any Indebtedness (other than such series of the Outstanding Notes) of the
Company or any Guarantor in excess of $10.0 million in aggregate principal amount; 
 WHEREAS, in connection with the Merger,
the Parent Guarantor has repaid the debt outstanding under the Original Issuer’s Amended and Restated Credit Agreement dated as of November 30, 2012, among the Original Issuer, the lenders party thereto, JPMorgan Chase Bank, N.A., as
administrative agent, Bank of America, N.A. and Royal Bank of Canada, as co-syndication agents, and The Bank of Nova Scotia and Toronto Dominion (New York) LLC, as co-documentation agents, and as of the time of such repayment, each Existing
Subsidiary Guarantor did not have outstanding any Guarantee of any Indebtedness (other than the Outstanding Notes) of the Company or any Guarantor in excess of $10.0 million in aggregate principal amount and therefore was automatically released and
relieved of any obligations under its respective Subsidiary Guarantee with respect to each series of the Outstanding Notes pursuant to Section 14.5 of the Indenture; 
 WHEREAS, Section 9.1 of the Indenture provides, among other things, that, without the consent of any holder of a Security, the Company, the Guarantors and the Trustee may amend or supplement the
Indenture, the Securities Guarantees or the Securities (i) to evidence the succession of another Person to the Company and the assumption by any such successor of the covenants of the Company in the Indenture and, to the extent applicable, to
the Securities and (ii) to make any change to any provision of the Indenture that does not adversely affect the rights or interests of any Holder of Securities; and 
 WHEREAS, Section 10.7 of the Indenture provides, among other things, that, if the Company is no longer subject to the periodic reporting requirements of the Exchange Act for any reason, the Company
will nevertheless continue filing with the SEC the annual reports, quarterly reports and current reports that the Company would be required to file with the SEC on Forms 10-K, 10-Q and 8-K under the Exchange Act if the Company were required to file
such reports; 

  
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 WHEREAS, in connection with the Merger, the Original Issuer will cease to be a reporting
company under the Exchange Act and will cease to have an obligation, other than pursuant to the Indenture, to file reports with the SEC on Forms 10-K, 10-Q and 8-K; 
 WHEREAS, as of the Merger Effective Time, the Parent Guarantor desires to (i) fully and unconditionally guarantee all payment obligations of the Company with respect to the Outstanding Notes on the
terms set forth herein and (ii) assume the reporting obligations set forth in Section 10.7 of the Indenture in lieu of the Company for so long as such guarantee is in effect; 

WHEREAS, the Original Issuer has requested that the Trustee execute and deliver this Eighteenth Supplemental Indenture pursuant to
Section 9.1 of the Indenture, and all conditions precedent and requirements necessary to make this Eighteenth Supplemental Indenture a valid and legally binding instrument in accordance with its terms have been complied with, performed and
fulfilled, and the execution and delivery hereof have been in all respects duly authorized. 
 NOW, THEREFORE, in consideration
of the foregoing and the mutual agreements, provisions and covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Successor Issuer, the Co-Issuer, the Parent
Guarantor, the Original Issuer and the Trustee agree as follows: 
 ARTICLE 1 

REPRESENTATIONS OF THE SUCCESSOR ISSUER, THE
CO-ISSUER, THE PARENT GUARANTOR 
 AND
THE ORIGINAL ISSUER 
 Each of the Successor Issuer, the Co-Issuer, the Parent
Guarantor and the Original Issuer represents and warrants to the Trustee, with respect to itself and in each case only to the extent applicable, as follows: 
 Section 1.01. Good Standing. It is a limited liability company or corporation duly formed or organized, validly existing and, to the extent applicable, in good standing under the laws of its
respective state of incorporation or formation as set forth in the preamble hereto. 
 Section 1.02. Authorization.
The execution, delivery and performance by it of this Eighteenth Supplemental Indenture have been authorized and approved by all necessary action on its part. 
 Section 1.03. No Default. Immediately after the Merger, no Default or Event of Default will exist. 
 Section 1.04. Consolidated Net Worth. The Successor Issuer will have Consolidated Net Worth immediately after the Merger equal to or greater than the Consolidated Net Worth of the Original
Issuer immediately preceding the Merger. 

  
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 Section 1.05. Without Consent of Holders. This Eighteenth Supplemental Indenture
is executed and delivered pursuant to Sections 9.1(b) and 9.1(g) of the Indenture and does not require the consent of any Holder of any Outstanding Notes. 
 ARTICLE 2 
 ASSUMPTION AND AGREEMENTS

 Section 2.01. Assumption of Obligations. Each of the Successor Issuer and the Co-Issuer hereby agrees, as of the
Merger Effective Time, to assume, to be bound by and to be jointly and severally liable, as a primary obligor and not as a guarantor or surety, with respect to, any and all obligations of the Company under the Indenture and the Securities on the
terms and subject to the conditions set forth in the Indenture. 
 Section 2.02. Notation of Securities. Securities
authenticated and delivered after the Merger Effective Time may, and shall if required by the Trustee, bear a notation in form approved by the Trustee as to any matter provided for in this Eighteenth Supplemental Indenture. 

Section 2.03. Discharge of Original Issuer. At the Merger Effective Time, the Successor Issuer and the Co-Issuer shall
succeed to, and be substituted for, the Original Issuer (so that from and after the Merger Effective Time, the provisions of the Indenture and the Securities referring to the “Company” shall refer instead to the Successor Issuer and the
Co-Issuer and not to the Original Issuer) and may exercise every right and power of the Company under the Indenture and the Securities, with the same effect as if the Successor Issuer and the Co-Issuer had been named as the Company therein. When the
Successor Issuer and the Co-Issuer assume all of the Original Issuer’s obligations under the Indenture and the Securities, the Original Issuer shall be discharged from those obligations. 

ARTICLE 3 

PARENT GUARANTEE 
 The Parent Guarantor hereby agrees that: 
 Section 3.01. The Parent
Guarantee. Subject to the provisions of this Article Three, the Parent Guarantor hereby agrees, as of the Merger Effective Time, to fully and unconditionally guarantee the full and punctual payment (whether at maturity, upon acceleration, upon
redemption or otherwise) of the principal of (and premium, if any) and interest on, and all other amounts payable under, each series of the Outstanding Notes, and the full and punctual payment of all other amounts payable by the Company to the
Holders of each series of the Outstanding Notes under the Indenture (the “Parent Guarantee”). Upon the failure by the Company to fully and punctually pay any such amount, the Parent Guarantor shall forthwith on demand pay the amount
not so paid at the place and in the manner specified in the Indenture. 

  
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 Section 3.02. Parent Guarantee Unconditional. The Parent Guarantee shall be
unconditional and absolute and, without limiting the generality of the foregoing, shall not be released, discharged or otherwise affected by: 
 (a) any extension, renewal, settlement, compromise, waiver or release in respect of any obligation of the Company under the Indenture or any series of the Outstanding Notes, by operation of law or
otherwise; 
 (b) any modification or amendment of, or supplement to, the Indenture or any series of the Outstanding Notes
(other than a modification, amendment or supplement effected in accordance with the terms of the Indenture which expressly releases, discharges or otherwise affects the Parent Guarantee); 

(c) any change in the corporate existence, structure or ownership of the Company, or any insolvency, bankruptcy, reorganization or other
similar proceeding affecting the Company or its assets or any resulting release or discharge of any obligation of the Company contained in the Indenture or any series of the Outstanding Notes; 

(d) the existence of any claim, set-off or other right that the Parent Guarantor may have at any time against the Company, the Trustee or
any other Person, whether in connection with the Indenture or an unrelated transaction, provided that nothing herein prevents the assertion of any such claim by separate suit or compulsory counterclaim; 

(e) any invalidity, irregularity or unenforceability relating to, or against the Company for any reason of, the Indenture or any series
of the Outstanding Notes, or any provision of applicable law or regulation purporting to prohibit the payment by the Company of the principal of or interest on any series of the Outstanding Notes or any other amount payable by the Company under the
Indenture; or 
 (f) any other act or omission to act or delay of any kind by the Company, the Trustee or any other Person or
any other circumstance whatsoever which might, but for the provisions of this Section 3.02, constitute a legal or equitable discharge of or defense to the Parent Guarantor’s obligations hereunder (other than an act contemplated by the
parenthetical in Section 3.02(b) above). 
 Section 3.03. Discharge Only Upon Payment in Full; Reinstatement in
Certain Circumstances. Subject to Section 3.08, the Parent Guarantee shall remain in full force and effect until the principal of (and premium, if any) and interest on, and all other amounts payable under, each series of the Outstanding
Notes, and all other amounts payable by the Company to the Holders of each series of the Outstanding Notes under the Indenture have been paid in full. If at any time any payment of the principal of (or premium, if any) or interest on, or any other
amounts payable under, any series of the Outstanding Notes or any other amount payable by the Company to the Holders of any series of the Outstanding Notes under the Indenture is rescinded or must be otherwise restored or returned upon the
insolvency, bankruptcy or reorganization of the Company or otherwise, the Parent Guarantee with respect to such payment shall be reinstated as though such payment had been due but not made at such time. 

  
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 Section 3.04. Waiver by the Parent Guarantor. The Parent Guarantor irrevocably
waives acceptance hereof, presentment, demand, protest and any notice not provided for herein, as well as any requirement that at any time any action be taken by any Person against the Company or any other Person. 

Section 3.05. Subrogation. The Parent Guarantor agrees that, until the indefeasible payment and satisfaction in full in cash
of all applicable obligations under the Outstanding Notes, the Parent Guarantee and the Indenture with respect to the Outstanding Notes, the Parent Guarantor shall waive any claim and shall not exercise any right or remedy, direct or indirect,
arising by reason of any performance by it of the Parent Guarantee, whether by subrogation or otherwise, against the Company. 

Section 3.06. Stay of Acceleration. If acceleration of the time for payment of any amount payable by the Company to the
Holders of any series of Outstanding Notes under the Indenture or the Outstanding Notes is stayed upon the insolvency, bankruptcy or reorganization of the Company, all such amounts otherwise subject to acceleration under the terms of the Indenture
are nonetheless payable by the Parent Guarantor hereunder forthwith on demand by the Trustee or the Holders of such series of Outstanding Notes. 
 Section 3.07. Notation of Parent Guarantee Not Required. The Parent Guarantor acknowledges that the Parent Guarantee shall remain in full force and effect notwithstanding the absence on any
Outstanding Note of a notation relating to the Parent Guarantee. 
 Section 3.08. Release of Parent Guarantor. The
Parent Guarantor’s obligations under the Parent Guarantee shall terminate upon (a) satisfaction and discharge of the Indenture pursuant to Article Four of the Indenture or (b) Legal Defeasance or Covenant Defeasance pursuant to
Article Thirteen of the Indenture. 
 Upon delivery by the Company to the Trustee of an Officers’ Certificate and an
Opinion of Counsel to the foregoing effect, the Trustee shall execute any documents reasonably required in order to evidence the release of the Parent Guarantor from its obligations under the Parent Guarantee. 

Section 3.09. Benefits Acknowledged. The Parent Guarantor acknowledges that it will receive direct and indirect benefits from
the financing arrangements contemplated by the Indenture and that the guarantee and waivers made by the Parent Guarantor pursuant to the Parent Guarantee are knowingly made in contemplation of such benefits. 

ARTICLE 4 

AMENDMENT OF INDENTURE 

With respect to the Outstanding Notes, the Indenture is hereby amended as set forth below in this Article Four; provided, however,
that each such amendment shall apply only to the Outstanding Notes and not to any other series of Securities issued under the Indenture. 

  
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 Section 4.01. Defined Terms. Subject to the limitations set forth in the
preamble to Article Four of this Eighteenth Supplemental Indenture, Section 1.1 of the Indenture is hereby amended by inserting or restating, as the case may be, each of the following defined terms in its appropriate alphabetical position:

 “Company” means Freeport-McMoRan Oil & Gas LLC and FCX Oil & Gas Inc. until a successor or
resulting corporation shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Company” shall mean such successor or resulting corporation. 

“Parent Guarantee” has the meaning given to such term in Section 3.01 to the Eighteenth Supplemental Indenture hereto,
dated as of May 31, 2013. 
 “Parent Guarantor” means Freeport-McMoRan Copper & Gold Inc., but only for
so long as Freeport-McMoRan Copper & Gold Inc. remains obligated under the Parent Guarantee pursuant to the terms of the Eighteenth Supplemental Indenture hereto, dated as of May 31, 2013. 

Section 4.02. Amendment of Section 5.1 of the Indenture. Subject to the limitations set forth in the preamble to Article
Four of this Eighteenth Supplemental Indenture, Section 5.1 of the Indenture is hereby amended and restated to read in its entirety as follows: 
 “Section 5.1 Events of Default. 
 (a) Each of the following is an
“Event of Default”: 
 (i) default in any payment of interest on any Note under this Indenture when
due, continued for 30 days; 
 (ii) default in the payment of principal of or premium, if any, on any Note under
this Indenture when due at its Stated Maturity, upon optional redemption, upon mandatory redemption (solely with respect to the 6.50% Senior Notes due 2020 and 6.875% Senior Notes due 2023), upon required repurchase, upon declaration or otherwise;

 (iii) failure by the Company to comply with its obligations under Article Eight of this Indenture or to
consummate a purchase of Notes when required pursuant to Section 10.12 or Section 10.15 of this Indenture; 
 (iv) failure by the Company or any of its Restricted Subsidiaries for 30 days after receipt of a written notice (sent by registered or certified mail, specifying such failure, requiring it to be remedied
and stating that such notice is a “Notice of Default” under this Indenture) from the Trustee or the Holders of at least 25% in aggregate principal amount of the then Outstanding Notes to comply with Section 10.9 or Section 10.11
of this Indenture or to comply with the provisions described under Section 10.12 or Section 10.15 of this Indenture to the extent not described in clause (iii) of this Section 5.1(a); 

  
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 (v)(A) except as addressed in subclause (B) of this clause (v), failure
by the Company or any of its Restricted Subsidiaries for 60 days after receipt of a written notice (sent by registered or certified mail, specifying such failure, requiring it to be remedied and stating that such notice is a “Notice of
Default” under this Indenture) from the Trustee or the Holders of at least 25% in aggregate principal amount of the then Outstanding Notes to comply with any of the other agreements in this Indenture or the Notes or (B) failure by the
Parent Guarantor for 180 days after such notice from the Trustee or the Holders of at least 25% in aggregate principal amount of the then Outstanding Notes to comply with Section 10.7 of this Indenture; 

(vi) default under any mortgage, indenture or instrument under which there may be issued or by which there may be secured
or evidenced any Indebtedness for money borrowed by the Company or any of its Restricted Subsidiaries (or the payment of which is guaranteed by the Company or any of its Restricted Subsidiaries), other than Indebtedness owed to the Company or a
Restricted Subsidiary, whether such Indebtedness or guarantee now exists, or is created after the Issue Date, which default: 
 (A) is caused by a failure to pay principal of, or interest or premium, if any, on such Indebtedness prior to the expiration of the grace period provided in such Indebtedness (“payment
default”); or 
 (B) results in the acceleration of such Indebtedness prior to its maturity; 

and, in each case, the principal amount of any such Indebtedness, together with the principal amount of any other such Indebtedness under
which there has been a payment default or the maturity of which has been so accelerated, aggregates $50.0 million or more; 
 (vii) failure by the Company or any Significant Subsidiary or group of Restricted Subsidiaries that, taken together (as of the latest audited consolidated financial statements for the Company and its
Restricted Subsidiaries), would constitute a Significant Subsidiary to pay final judgments aggregating in excess of $50.0 million (net of any amounts that a reputable and creditworthy insurance company has acknowledged liability for in writing),
which judgments are not paid, discharged or stayed for a period of 60 days; 
 (viii) any Subsidiary Guarantee
shall be held in a judicial proceeding, or be asserted by the Company or any Guarantor, as applicable, not to be, enforceable or valid or shall cease to be in full force and effect (except pursuant to the release or termination of any such
Subsidiary Guarantee in accordance with this Indenture); 
 (ix) the Company, any Significant Subsidiary of the
Company or any group of Restricted Subsidiaries of the Company that, taken together (as of the 

  
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latest audited consolidated financial statements for the Company and its Restricted Subsidiaries), would constitute a Significant Subsidiary of the Company, pursuant to or within the meaning of
Bankruptcy Law: 
 (A) commences a voluntary case, 

(B) consents to the entry of an order for relief against it in an involuntary case, 

(C) makes a general assignment for the benefit of its creditors, or 

(D) generally is not paying its debts as they become due; and 

(x) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: 

(A) is for relief against the Company, any Significant Subsidiary of the Company or any group of Restricted Subsidiaries
of the Company that, taken together (as of the latest audited consolidated financial statements for the Company and its Restricted Subsidiaries), would constitute a Significant Subsidiary of the Company, in an involuntary case; or 

(B) appoints a custodian of the Company, any Significant Subsidiary of the Company or any group of Restricted Subsidiaries
of the Company that, taken together (as of the latest audited consolidated financial statements for the Company and its Restricted Subsidiaries), would constitute a Significant Subsidiary of the Company, or for all or substantially all of the
property of the Company, any Significant Subsidiary of the Company or any group of Restricted Subsidiaries of the Company that, taken together (as of the latest audited consolidated financial statements for the Company and its Restricted
Subsidiaries), would constitute a Significant Subsidiary of the Company; or 
 (C) orders the liquidation of the
Company, any Significant Subsidiary of the Company or any group of Restricted Subsidiaries of the Company that, taken together (as of the latest audited consolidated financial statements for the Company and its Restricted Subsidiaries), would
constitute a Significant Subsidiary of the Company; 
 and the order or decree remains unstayed and in effect for 60 consecutive
days. 
 (b) The Company shall, so long as any of the Notes are Outstanding, deliver to the Trustee, within five Business Days
after any Officer becomes aware of any Default or Event of Default, an Officers’ Certificate specifying such Default or Event of Default and what action the Company is taking or proposes to take with respect thereto.” 

  
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 Section 4.03. Amendment of Section 5.2 of the Indenture. Subject to the
limitations set forth in the preamble to Article Four of this Eighteenth Supplemental Indenture, Section 5.2 of the Indenture is hereby amended and restated to read in its entirety as follows: 

“Section 5.2. Acceleration of Maturity; Rescission and Annulment; Interest Rate Increase. 

(a) To the extent permitted by applicable law, in the case of an Event of Default specified in clause (ix) or clause (x) of
Section 5.1(a) of this Indenture, all then Outstanding Notes will become due and payable immediately without further action or notice. If any other Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in
aggregate principal amount of the then Outstanding Notes may declare all the Notes to be due and payable immediately by notice in writing to the Company and, in case of a notice by Holders, also to the Trustee specifying the respective Event of
Default and that it is a notice of acceleration. Upon any such declaration, the Notes shall become due and payable immediately. 

(b) At any time after such a declaration of acceleration with respect to the Notes has been made and before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter in this Article Five provided, the Holders of a majority in principal amount of the Outstanding Notes, by written notice to the Company and the Trustee, may rescind and annul
such declaration and its consequences if: 
 (i) the Company or one or more of the Guarantors has paid or
deposited with the Trustee a sum sufficient to pay: 
 (A) all overdue interest on all Notes, 

(B) the principal of (and premium, if any, on) any Notes which have become due otherwise than by such declaration of
acceleration and any interest thereon at the rate or rates prescribed therefor in such Notes, 
 (C) to the
extent that payment of such interest is lawful, interest upon overdue interest at the rate or rates prescribed therefor in such Notes, and 
 (D) all sums paid or advanced by the Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel; and 

(ii) all Events of Default with respect to the Notes, other than the non-payment of the principal of the Notes which have
become due solely by such declaration of acceleration, have been cured or waived as provided in Section 5.13 of this Indenture. 
 (iii) No such rescission shall affect any subsequent default or impair any right consequent thereon. 

  
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 (c) Notwithstanding the foregoing Section 5.2(b), if an Event of Default specified in
clause (vi) of Section 5.1(a) above shall have occurred and be continuing, such Event of Default and any consequential acceleration shall be automatically rescinded if (i) the Indebtedness that is the subject of such Event of Default
has been repaid, or (ii) if the default relating to such Indebtedness is waived or cured and if such Indebtedness has been accelerated, then the holders thereof have rescinded their declaration of acceleration in respect of such Indebtedness.

 (d) Upon any failure by the Parent Guarantor for 60 days to comply with Section 10.7 of this Indenture, the interest
rate on the Notes will increase by 50 basis points (0.5%) and remain at such increased rate thereafter but only for so long as there is a Default under such Section 10.7, and upon resumption of compliance by the Parent Guarantor with such
Section 10.7, the interest rate on the Notes will be reset at the initial rate applicable on the Issue Date.” 

Section 4.04. Amendment of Section 10.7 of the Indenture. Subject to the limitations set forth in the preamble to
Article Four of this Eighteenth Supplemental Indenture, Section 10.7 of the Indenture is hereby amended and restated to read in its entirety as follows: 
 “Section 10.7 Reports. 
 (a) Regardless of whether required by the
rules and regulations of the SEC, so long as any Notes are Outstanding, the Parent Guarantor will file with the SEC for public availability, within the time periods specified in the SEC’s rules and regulations (unless the SEC will not accept
such a filing, in which case the Parent Guarantor will furnish to the Holders of Notes or cause the Trustee to furnish to the Holders of Notes, within the time periods specified in the SEC’s rules and regulations): 

(i) all quarterly and annual reports that would be required to be filed with the SEC on Forms 10-Q and 10-K under the
Exchange Act if the Parent Guarantor were required to file such reports; and 
 (ii) all current reports that
would be required to be filed with the SEC on Form 8-K under the Exchange Act if the Parent Guarantor were required to file such reports. 
 The Parent Guarantor shall be deemed to have furnished such reports to the Trustee and the Holders if it has filed such reports with the SEC using the SEC’s Electronic Data Gathering, Analysis and
Retrieval System, or any successor system, and such reports are publicly available. 
 (b) All such reports will be prepared in
all material respects in accordance with all of the rules and regulations applicable to such reports. Each annual report on Form 10-K will include a report on the Parent Guarantor’s consolidated financial statements by the Parent
Guarantor’s certified independent accountants. 

  
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Table of Contents

 (c) If, at any time, the Parent Guarantor is no longer subject to the periodic reporting
requirements of the Exchange Act for any reason, the Parent Guarantor will nevertheless continue filing the reports specified in Section 10.7(a) with the SEC within the time periods specified above unless the SEC will not accept such a filing.
The Parent Guarantor will not take any action for the purpose of causing the SEC not to accept any such filings. If, notwithstanding the foregoing, the SEC will not accept the Parent Guarantor’s filings for any reason, the Parent Guarantor will
post the reports referred to in the preceding paragraphs on its website within the time periods that would apply if the Parent Guarantor were required to file those reports with the SEC. 

(d) If the Company has designated any of its Subsidiaries as Unrestricted Subsidiaries, then, to the extent material, the quarterly and
annual financial information required by the preceding paragraphs of this Section 10.7 will include a reasonably detailed presentation, either on the face of the financial statements or in the footnotes thereto, and in “Management’s
Discussion and Analysis of Financial Condition and Results of Operations,” of the financial condition and results of operations of the Parent Guarantor, the Company and the Restricted Subsidiaries separate from the financial condition and
results of operations of the Unrestricted Subsidiaries.” 
 ARTICLE 5 

MISCELLANEOUS 
 Section 5.01. General References. Unless otherwise specified or unless the context otherwise requires, (i) all references in this Eighteenth Supplemental Indenture to Articles and
Sections refer to the corresponding Articles and Sections of this Eighteenth Supplemental Indenture and (ii) the terms “herein,” “hereof,” “hereunder” and any other word of similar import
refers to this Eighteenth Supplemental Indenture. 
 Section 5.02. Effectiveness of Eighteenth Supplemental
Indenture. Notwithstanding anything to the contrary elsewhere herein, this Eighteenth Supplemental Indenture shall become effective only as of the Merger Effective Time. Promptly after the Merger Effective Time, the Successor Issuer shall
provide notice thereof to the Trustee. If the Original Issuer notifies the Trustee in writing that the Merger Effective Time will not occur, then the provisions hereof shall not become effective. Upon the effectiveness of this Eighteenth
Supplemental Indenture, the Indenture shall be and be deemed to be modified and amended in accordance herewith and the respective rights, limitations of rights, obligations, duties and immunities under the Indenture of the Trustee, the Company and
the Holders affected thereby shall hereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of this Eighteenth Supplemental Indenture shall be and be
deemed to be part of the terms and conditions of the Indenture for any and all purposes. 
 Section 5.03. Indenture
Remains in Full Force and Effect. Except as amended and supplemented hereby, all provisions in the Indenture shall remain in full force and effect and are in all respects ratified and confirmed. 

  
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Table of Contents

 Section 5.04. Supplemental Indenture Controls. If there is any conflict or
inconsistency between the Indenture and this Eighteenth Supplemental Indenture, the provisions of this Eighteenth Supplemental Indenture shall control. 
 Section 5.05. No Recourse Against Others. No past, present or future director, officer, employee, incorporator or shareholder of the Parent Guarantor or any successor of the Parent Guarantor
shall have any liability by reason of his, her or its status as such under or upon any obligation, covenant or agreement of the Parent Guarantor contained in this Eighteenth Supplemental Indenture, the Indenture or the Outstanding Notes, or because
of any indebtedness evidenced thereby, all such liability being expressly waived and released by the Holders of the Outstanding Notes by their acceptance of the Parent Guarantee and as part of the consideration for the making of the Parent
Guarantee. 
 Section 5.06. Notices and Demands. (a) Any notice, demand, direction, request or other document
that is required or permitted by any provision of this Eighteenth Supplemental Indenture or the Indenture to be given or made by the Trustee or by the Holders of any series of Outstanding Notes to or upon the Successor Issuer or the Co-Issuer shall
be given or made by postage-prepaid, first-class mail addressed (until another address of the Successor Issuer or the Co-Issuer is filed by the Successor Issuer or the Co-Issuer, as applicable, with the Trustee) c/o Freeport-McMoRan
Copper & Gold Inc., 333 North Central Avenue, Phoenix, Arizona 85004-2189, Attention: FCX Treasurer. 
 (b) Any notice,
demand, direction, request or other document that is required or permitted by any provision of this Eighteenth Supplemental Indenture or the Indenture to be given or made by the Trustee or by the Holders of any series of Outstanding Notes to or upon
the Parent Guarantor shall be given or made by postage-prepaid, first-class mail addressed (until another address of the Parent Guarantor is filed by the Parent Guarantor with the Trustee) to Freeport-McMoRan Copper & Gold Inc., 333 North
Central Avenue, Phoenix, Arizona 85004-2189, Attention: FCX Treasurer. 
 (c) Any notice, demand, direction, request or other
document that is required or permitted by any provision of this Eighteenth Supplemental Indenture or the Indenture to be given or made by the Parent Guarantor to or upon the Trustee or the Holders of any series of Outstanding Notes shall be given or
made in accordance with Section 1.6 of the Indenture. As of the date of this Eighteenth Supplemental Indenture, the address for any such notice, demand, direction, request or other document to be given or made to or upon the Trustee is 750 N.
St. Paul Place, Suite 1750, Dallas, Texas 75201, Attention: Corporate Trust, Municipal and Escrow Services. 

Section 5.07. Benefits of Supplemental Indenture. Nothing in this Eighteenth Supplemental Indenture, express or implied,
shall give or be construed to give to any Person, other than the parties hereto, any Authenticating Agent, any Paying Agent, any Security Registrar, any successors to the foregoing hereunder and the Holders, any benefit or any legal or equitable
right, remedy or claim under the Indenture or this Eighteenth Supplemental Indenture. 

  
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Table of Contents

 Section 5.08. Successors and Assigns. All covenants and agreements in this
Eighteenth Supplemental Indenture made by the Successor Issuer, the Co-Issuer, the Parent Guarantor, the Original Issuer or the Trustee shall bind their respective successors and assigns, whether so expressed or not. 

Section 5.09. Severability. If any provision of this Eighteenth Supplemental Indenture shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby, and no Holder of any series of Outstanding Notes shall have any claim therefor against any party
hereto. 
 Section 5.10. Governing Law. This Eighteenth Supplemental Indenture and the rights and duties of the
parties hereunder shall be governed by, and construed in accordance with, the laws of the State of New York (without giving effect to any provision thereof relating to conflicts of laws principles that would apply the laws of another jurisdiction),
except to the extent that the Trust Indenture Act is applicable. 
 Section 5.11. Counterparts. This Eighteenth
Supplemental Indenture may be executed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. 

Section 5.12. Headings. The Article and Section headings herein are for convenience only and shall not affect the
construction hereof. 
 Section 5.13. Obligations Under Indenture. For the avoidance of doubt, the Parent Guarantor
shall not be bound by any obligations or covenants under the Indenture except as set forth in this Eighteenth Supplemental Indenture or as otherwise required by the Trust Indenture Act. 

Section 5.14. Trustee Disclaimer. The Trustee accepts the amendments of the Indenture effected by this Eighteenth
Supplemental Indenture and agrees to execute the trust created by the Indenture as hereby amended, but on the terms and conditions set forth in the Indenture, including the terms and provisions defining and limiting its liabilities and
responsibilities in the performance of the trust created by the Indenture as hereby amended, and without limiting the generality of the foregoing, the Trustee shall not be responsible in any manner whatsoever for or with respect to any of the
recitals or statements contained herein, all of which recitals or statements are made solely by the Successor Issuer, the Co-Issuer, the Parent Guarantor and the Original Issuer, as applicable, and the Trustee makes no representation with respect to
any such matters. Additionally, the Trustee makes no representations as to the validity or sufficiency of this Eighteenth Supplemental Indenture. 
 [The remainder of this page is intentionally left blank] 

  
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Table of Contents

 Exhibit 4.1 
 IN WITNESS WHEREOF, the parties hereto have caused this Eighteenth Supplemental Indenture to be duly executed as of the day and year first written above. 

 

					
	 FREEPORT-MCMORAN OIL & GAS
    LLC,
     as Successor Issuer

		
	By:	 	 /s/ Kathleen L. Quirk

		 	 Name:
	 	Kathleen L. Quirk
		 	 Title:
	 	Executive Vice President & Treasurer
	
	 FCX OIL & GAS INC.,
     as Co-Issuer

		
	By:	 	 /s/ Kathleen L. Quirk

		 	 Name:
	 	Kathleen L. Quirk
		 	 Title:
	 	Executive Vice President
	
	 FREEPORT-MCMORAN COPPER &
    GOLD INC.,

    as Parent Guarantor

		
	By:	 	 /s/ Kathleen L. Quirk

		 	Name:	 	Kathleen L. Quirk
		 	Title:	 	Executive Vice President, Chief Financial Officer & Treasurer
	
	 PLAINS EXPLORATION &
    PRODUCTION COMPANY,

    as Original Issuer

		
	By:	 	 /s/ Winston M. Talbert

		 	Name:	 	Winston M. Talbert
		 	Title:	 	Executive Vice President & Chief Financial Officer

 [Signature Page to Eighteenth Supplemental Indenture] 

Table of Contents

 
					
	 WELLS FARGO BANK, N.A.,
     as Trustee

		
	By:	 	 /s/ Patrick T. Giordano

		 	Name:	 	Patrick T. Giordano
		 	Title:	 	Vice President

 [Signature Page to Eighteenth Supplemental Indenture]EX-10.1

 Exhibit 10.1 
 PROCERA NETWORKS, INC. 
 2007
EQUITY INCENTIVE PLAN 
 APPROVED BY
THE BOARD: OCTOBER 17, 2007 
 APPROVED BY
THE STOCKHOLDERS: JANUARY 30, 2008 
 TERMINATION
DATE: OCTOBER 16, 2017 
 AMENDED: NOVEMBER 13, 2009

 APPROVED BY THE STOCKHOLDERS:
DECEMBER 16, 2009 (THE “AMENDMENT DATE”) 

AMENDED: MARCH 10, 2011 
 APPROVED BY THE STOCKHOLDERS: JUNE 13, 2011 
 AMENDED: MARCH 8, 2012 

APPROVED BY THE STOCKHOLDERS: AUGUST 27, 2012

 AMENDED: MARCH 12, 2013 

APPROVED BY THE STOCKHOLDERS: MAY 30, 2013

  

	1.	GENERAL. 

 (a) Successor and Continuation of Prior Plans. The Plan is intended as the successor to and continuation of the Procera Networks, Inc. 2003 Stock Option Plan and 2004 Stock Option Plan, as
amended (the “Prior Plans”). Following the Effective Date, no additional stock awards shall be granted under the Prior Plans. Any shares remaining available for future awards under the Prior Plans as of the Effective Date
(the “Prior Plan Available Reserve”) shall become available for issuance pursuant to Awards granted hereunder. From and after the Effective Date, any shares subject to outstanding stock awards granted under the Prior Plans
that expire or terminate for any reason prior to exercise or settlement (the “Returning Shares”) shall become available for issuance pursuant to Awards granted hereunder. From and after the Effective Date, all outstanding
stock awards granted under the Prior Plans shall remain subject to the terms of the Prior Plans with respect to which they were originally granted and shares issuable under such awards shall be issued from such Prior Plans. All Awards granted
subsequent to the effective date of this Plan shall be subject to the terms of this Plan. 
 (b) Eligible Award
Recipients. The persons eligible to receive Awards are Employees, Directors and Consultants. 
 (c) Available
Awards. The Plan provides for the grant of the following Awards: (i) Incentive Stock Options, (ii) Nonstatutory Stock Options, (iii) Restricted Stock Awards, (iv) Restricted Stock Unit Awards, (v) Stock
Appreciation Rights, (vi) Performance Stock Awards, (vii) Performance Cash Awards, and (viii) Other Stock Awards. 
 (d) Purpose. The Company, by means of the Plan, seeks to secure and retain the services of the group of persons eligible to receive Awards as set forth in Section 1(b), to provide
incentives for such persons to exert maximum efforts for the success of the Company and any Affiliate, and to provide a means by which such eligible recipients may be given an opportunity to benefit from increases in value of the Common Stock
through the granting of Stock Awards. 
  

	2.	ADMINISTRATION. 

 (a) Administration by Board. The Board shall administer the Plan unless and until the Board delegates administration of the Plan to a Committee or Committees, as provided in
Section 2(c). 
 (b) Powers of Board. The Board shall have the power, subject to, and within the limitations
of, the express provisions of the Plan: 
 (i) To determine from time to time (A) which of the persons eligible
under the Plan shall be granted Awards; (B) when and how each Award shall be granted; (C) what type or combination of types of Awards shall be granted; (D) the provisions of each Award granted (which need not be identical), including
the time or times when a person shall be permitted to receive cash or Common Stock pursuant to an Award; (E) the number of shares of Common Stock with respect to which a Stock Award shall be granted to each such person; and (F) the Fair
Market Value applicable to a Stock Award. 

 (ii) To construe and interpret the Plan and Awards granted under it, and to
establish, amend and revoke rules and regulations for its administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan or in any Stock Award Agreement or in the written terms of a
Performance Cash Award, in a manner and to the extent it shall deem necessary or expedient to make the Plan or Award fully effective. 
 (iii) To settle all controversies regarding the Plan and Awards granted under it. 
 (iv) To accelerate the time at which a Stock Award may first be exercised or the time during which an Award or any part thereof will vest in accordance with the Plan, notwithstanding the provisions
in the Award stating the time at which it may first be exercised or the time during which it will vest. 
 (v) To effect,
at any time and from time to time, subject to stockholder approval, (1) the reduction of the exercise price of any outstanding Option or the strike price of any outstanding Stock Appreciation Right; (2) the cancellation of any outstanding
Option or Stock Appreciation Right and the grant in substitution therefor of (a) a new Option or Stock Appreciation Right under the Plan or another equity plan of the Company covering the same or different number of shares of Common Stock,
(b) a Restricted Stock Award, (c) a Restricted Stock Unit Award, (d) an Other Stock Award, (e) cash, and/or (f) other valuable consideration as determined by the Board in its sole discretion; or (3) any other action
that is treated as a repricing under generally accepted accounting principles. 
 (vi) To suspend or terminate the Plan
at any time. Suspension or termination of the Plan shall not impair rights and obligations under any Award granted while the Plan is in effect except with the written consent of the affected Participant. 

(vii) To amend the Plan in any respect the Board deems necessary or advisable, including, without limitation, relating to
Incentive Stock Options and certain nonqualified deferred compensation under Section 409A of the Code and/or to bring the Plan or Awards granted under the Plan into compliance therewith, subject to the limitations, if any, of applicable law.
However, except as provided in Section 9(a) relating to Capitalization Adjustments, stockholder approval shall be required for any amendment of the Plan that either (i) materially increases the number of shares of Common Stock available
for issuance under the Plan, (ii) materially expands the class of individuals eligible to receive Awards under the Plan, (iii) materially increases the benefits accruing to Participants under the Plan or materially reduces the price at
which shares of Common Stock may be issued or purchased under the Plan, (iv) materially extends the term of the Plan, or (v) expands the types of Awards available for issuance under the Plan, but in each of (i) through (v) only
to the extent required by applicable law or listing requirements. Except as provided above, rights under any Award granted before amendment of the Plan shall not be impaired by any amendment of the Plan unless (i) the Company requests the
consent of the affected Participant, and (ii) such Participant consents in writing. 
 (viii) To submit any
amendment to the Plan for stockholder approval, including, but not limited to, material amendments to the Plan intended to satisfy the requirements of (i) Section 162(m) of the Code and the regulations thereunder regarding the exclusion of
performance-based compensation from the limit on corporate deductibility of compensation paid to Covered Employees, (ii) Section 422 of the Code regarding Incentive Stock Options, or (iii) Rule 16b-3. 

(ix) To approve forms of Award Agreements for use under the Plan and to amend the terms of any one or more Awards, including, but
not limited to, amendments to provide terms more favorable than previously provided in the Award Agreement, subject to any specified limits in the Plan that are not subject to Board discretion; provided however, that, the rights under any
Award shall not be impaired by any such amendment unless (i) the Company requests the consent of the affected Participant, and (ii) such Participant consents in writing. Notwithstanding the foregoing, subject to the limitations of
applicable law, if any, and without the affected Participant’s consent, the Board may amend the terms of any one or more Awards, or correct any clerical errors, if necessary to maintain the qualified status of the Stock Award as an Incentive
Stock Option or to bring the Award into compliance with Section 409A of the Code and the related guidance thereunder. 

  
 2 

 (x) Generally, to exercise such powers and to perform such acts as the Board deems
necessary or expedient to promote the best interests of the Company and that are not in conflict with the provisions of the Plan or Awards. 
 (xi) To adopt such procedures and sub-plans as are necessary or appropriate to permit participation in the Plan by Employees, Directors or Consultants who are foreign nationals or employed outside
the United States. 
 (c) Delegation to Committee. 

(i) General. The Board may delegate some or all of the administration of the Plan to a Committee or Committees. If
administration is delegated to a Committee, the Committee shall have, in connection with the administration of the Plan, the powers theretofore possessed by the Board that have been delegated to the Committee, including the power to delegate to a
subcommittee of the Committee any of the administrative powers the Committee is authorized to exercise (and references in the Plan to the Board shall thereafter be to the Committee or subcommittee), subject, however, to such resolutions, not
inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. The Board may retain the authority to concurrently administer the Plan with the Committee and may, at any time, revest in the Board some or all of the
powers previously delegated. 
 (ii) Section 162(m) and Rule 16b-3 Compliance. In the sole discretion of the
Board, the Committee may consist solely of two or more Outside Directors, in accordance with Section 162(m) of the Code, and/or solely of two or more Non-Employee Directors, in accordance with Rule 16b-3. In addition, the Board or the
Committee, in its sole discretion, may (A) delegate to a Committee who need not be Outside Directors the authority to grant Awards to eligible persons who are either (I) not then Covered Employees and are not expected to be Covered
Employees at the time of recognition of income resulting from such Award, or (II) not persons with respect to whom the Company wishes to comply with Section 162(m) of the Code, and/or (B) delegate to a Committee who need not be
Non-Employee Directors the authority to grant Awards to eligible persons who are not then subject to Section 16 of the Exchange Act. 
 (d) Delegation to Officers. The Board may delegate to one or more Officers the authority to do one or both of the following (i) designate Officers and Employees of the Company or any of
its Subsidiaries to be recipients of Options (and, to the extent permitted by applicable law, other Awards) and the terms thereof, and (ii) determine the number of shares of Common Stock to be subject to such Stock Awards granted to such
Officers and Employees; provided, however, that the Board resolutions regarding such delegation shall specify the total number of shares of Common Stock that may be subject to the Stock Awards granted by such Officers and that such
Officer may not grant a Stock Award to himself or herself. Notwithstanding anything to the contrary in this Section 2(d), the Board may not delegate to an Officer authority to determine the Fair Market Value of the Common Stock pursuant to
Section 13(x)(ii) below. 
 (e) Effect of Board’s Decision. All determinations, interpretations and
constructions made by the Board in good faith shall not be subject to review by any person and shall be final, binding and conclusive on all persons. 
  

	3.	SHARES SUBJECT TO THE PLAN. 

(a) Share Reserve. Subject to the provisions of Section 9(a) relating to Capitalization Adjustments, the aggregate number of
shares of common stock of the Company that may be issued pursuant to Stock Awards under the Plan shall not exceed 2,400,000 shares of Common Stock, plus an additional number of shares in an amount not to exceed 738,952, comprised of: (i) that
number of shares subject to the Prior Plan Available Reserve plus (ii) the Returning Shares (as such shares become available from time to time). Shares may be issued in connection with a merger or acquisition as permitted by NASD Rule
4350(i)(1)(A)(iii) or, if applicable, NYSE Listed Company Manual Section 303A.08, or AMEX Company Guide Section 711 and such issuance shall not reduce the number of shares available for issuance under the Plan. 

(b) Reversion of Shares to the Share Reserve. If any (i) Stock Award shall for any reason expire or otherwise terminate, in
whole or in part, without having been exercised in full, (ii) shares of Common Stock issued to a Participant pursuant to a Stock Award are forfeited back to or repurchased by the Company because of the

  
 3 

 
failure to meet a contingency or condition required for the vesting of such shares, (iii) Stock Award is settled in cash, or (iv) shares of Common Stock are cancelled in accordance with
the cancellation and regrant provisions of Section 3(b)(v), then the shares of Common Stock not issued under such Stock Award, or forfeited to or repurchased by the Company, shall revert to and again become available for issuance under the
Plan. If any shares subject to a Stock Award are not delivered to a Participant because such shares are withheld for the payment of taxes or the Stock Award is exercised through a reduction of shares subject to the Stock Award (i.e., “net
exercised”) or an appreciation distribution in respect of a Stock Appreciation right is paid in shares of Common Stock, the number of shares subject to the Stock Award that are not delivered to the Participant shall remain available for
subsequent issuance under the Plan. If the exercise price of any Stock Award is satisfied by tendering shares of Common Stock held by the Participant (either by actual delivery or attestation), then the number of shares so tendered shall remain
available for issuance under the Plan. 
 (c) Incentive Stock Option Limit. Notwithstanding anything to the
contrary in this Section 3(c), subject to the provisions of Section 9(a) relating to Capitalization Adjustments the aggregate maximum number of shares of Common Stock that may be issued pursuant to the exercise of Incentive Stock Options
shall be 3,138,952 shares of Common Stock. 
 (d) Source of Shares. The stock issuable under the Plan shall be
shares of authorized but unissued or reacquired Common Stock, including shares repurchased by the Company on the open market. 
  

	4.	ELIGIBILITY. 

 (a) Eligibility for Specific Stock Awards. Incentive Stock Options may be granted only to employees of the Company or a “parent corporation” or “subsidiary corporation” thereof
(as such terms are defined in Sections 424(e) and 424(f) of the Code). Stock Awards other than Incentive Stock Options may be granted to Employees, Directors and Consultants; provided, however, Nonstatutory Stock Options and SARs may
not be granted to Employees, Directors and Consultants who are providing Continuous Service only to any “parent” of the Company, as such term is defined in Rule 405, unless the stock underlying such Stock Awards is treated as “service
recipient stock” under Section 409A of the Code because the Stock Awards are granted pursuant to a corporate transaction (such as a spin off transaction) or unless such Stock Awards comply with the distribution requirements of
Section 409A of the Code. 
 (b) Ten Percent Stockholders. A Ten Percent Stockholder shall not be granted an
Incentive Stock Option unless the exercise price of such Option is at least one hundred ten percent (110%) of the Fair Market Value of the Common Stock on the date of grant and the Option is not exercisable after the expiration of five
(5) years from the date of grant. 
 (c) Section 162(m) Limitation. Subject to the provisions of
Section 9(a) relating to Capitalization Adjustments, at such time as the Company may be subject to the applicable provisions of Section 162(m) of the Code, no Employee shall be eligible to be granted during any calendar year Stock Awards
whose value is determined by reference to an increase over an exercise or strike price of at least one hundred percent (100%) of the Fair Market Value of the Common Stock on the date the Stock Award is granted covering more than 150,000 shares
of Common Stock. 
 (d) Consultants. A Consultant shall be eligible for the grant of a Stock Award only if, at the
time of grant, (i) a Form S-8 Registration Statement under the Securities Act or a successor or similar form under the Securities Act (“Form S-8”) is available to register either the offer or the sale of the
Company’s securities to such Consultant because of the nature of the services that the Consultant is providing to the Company, because the Consultant is a natural person, or because of any other rule governing the use of Form S-8,
(ii) such grant complies with the requirements of Rule 701 of the Securities Act, or (iii) the Company determines that such grant will otherwise comply with the securities laws of all relevant jurisdictions. 

  
 4 

	5.	OPTION PROVISIONS. 

 Each Option shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. All Options shall be separately designated Incentive Stock Options or Nonstatutory Stock
Options at the time of grant, and, if certificates are issued, a separate certificate or certificates shall be issued for shares of Common Stock purchased on exercise of each type of Option. If an Option is not specifically designated as an
Incentive Stock Option, then the Option shall be a Nonstatutory Stock Option. The provisions of separate Options need not be identical; provided, however, that each Option Agreement shall conform to (through incorporation of provisions
hereof by reference in the Option Agreement or otherwise) the substance of each of the following provisions: 
 (a)
Term. Subject to the provisions of Section 4(b) regarding Ten Percent Stockholders, no Option shall be exercisable after the expiration of ten (10) years from the date of its grant or such shorter period specified in the Option
Agreement. 
 (b) Exercise Price. Subject to the provisions of Section 4(b) regarding Ten Percent
Stockholders, and notwithstanding anything in the Option Agreement to the contrary, the exercise price of each Option shall be not less than one hundred percent (100%) of the Fair Market Value of the Common Stock subject to the Option on the
date the Option is granted. Notwithstanding the foregoing, an Option may be granted with an exercise price lower than one hundred percent (100%) of the Fair Market Value of the Common Stock subject to the Option if such Option is granted
pursuant to an assumption or substitution for another option in a manner consistent with the provisions of Sections 409A and 424(a) of the Code (whether or not such options are Incentive Stock Options). 

(c) Consideration. The purchase price of Common Stock acquired pursuant to the exercise of an Option shall be paid, to the
extent permitted by applicable law and as determined by the Board in its sole discretion, by any combination of the methods of payment set forth below. The Board shall have the authority to grant Options that do not permit all of the following
methods of payment (or otherwise restrict the ability to use certain methods) and to grant Options that require the consent of the Company to utilize a particular method of payment. The methods of payment permitted by this Section 5(c) are:

 (i) by cash, check, bank draft or money order payable to the Company; 

(ii) pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board that, prior to the issuance of
the stock subject to the Option, results in either the receipt of cash (or check) by the Company or the receipt of irrevocable instructions to pay the aggregate exercise price to the Company from the sales proceeds; 

(iii) by delivery to the Company (either by actual delivery or attestation) of shares of Common Stock; 

(iv) if the option is a Nonstatutory Stock Option, by a “net exercise” arrangement pursuant to which the Company will
reduce the number of shares of Common Stock issuable upon exercise by the largest whole number of shares with a Fair Market Value that does not exceed the aggregate exercise price; provided, however, that the Company shall accept a
cash or other permitted payment from the Participant to the extent of any remaining balance of the aggregate exercise price not satisfied by such reduction in the number of whole shares to be issued; provided, further, that shares of
Common Stock will no longer be outstanding under an Option and will not be exercisable thereafter to the extent that (A) shares are used to pay the exercise price pursuant to the “net exercise,” (B) shares are delivered to the
Participant as a result of such exercise, and (C) shares are withheld to satisfy tax withholding obligations; or 
 (v)
in any other form of legal consideration that may be acceptable to the Board in its sole discretion and permissible under applicable law. 

  
 5 

 (d) Transferability of Options. The Board may, in its sole discretion, impose
such limitations on the transferability of Options as the Board shall determine. If the Board determines that an Option will be transferable, the Option will contain such additional terms and conditions as the Board deems appropriate. In the absence
of such a determination by the Board to the contrary, the following restrictions on the transferability of Options shall apply: 

(i) Restrictions on Transfer. An Option shall not be transferable except by will or by the laws of descent and distribution
and shall be exercisable during the lifetime of the Optionholder only by the Optionholder; provided, however, that the Board may, in its sole discretion, permit transfer of the Option in a manner that is consistent with applicable tax
and securities laws upon the Optionholder’s request. 
 (ii) Domestic Relations Orders. Notwithstanding the
foregoing, an Option may be transferred pursuant to a domestic relations order, provided, however, that if an Option is an Incentive Stock Option, such Option may be deemed to be a Nonstatutory Stock Option as a result of such
transfer. 
 (iii) Beneficiary Designation. Notwithstanding the foregoing, the Optionholder may, by delivering
written notice to the Company, in a form provided by or otherwise satisfactory to the Company and any broker designated by the Company to effect Option exercises, designate a third party who, in the event of the death of the Optionholder, shall
thereafter be entitled to exercise the Option. In the absence of such a designation, the executor or administrator of the Optionholder’s estate shall be entitled to exercise the Option. 

(e) Vesting of Options Generally. The total number of shares of Common Stock subject to an Option may vest and therefore
become exercisable in periodic installments that may or may not be equal. The Option may be subject to such other terms and conditions on the time or times when it may or may not be exercised (which may be based on the satisfaction of Performance
Goals or other criteria) as the Board may deem appropriate. The vesting provisions of individual Options may vary. The provisions of this Section 5(e) are subject to any Option provisions governing the minimum number of shares of Common Stock
as to which an Option may be exercised. 
 (f) Termination of Continuous Service. Except as otherwise provided in
the applicable Option Agreement or other agreement between the Optionholder and the Company, in the event that an Optionholder’s Continuous Service terminates (other than for Cause or upon the Optionholder’s death or Disability), the
Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of termination of Continuous Service) but only within such period of time ending on the earlier of (i) the date
three (3) months following the termination of the Optionholder’s Continuous Service, or (ii) the expiration of the term of the Option as set forth in the Option Agreement. If, after termination of Continuous Service, the Optionholder
does not exercise his or her Option within the time specified herein or in the Option Agreement (as applicable), the Option shall terminate. 
 (g) Extension of Termination Date. For Options granted after the Amendment Date, if the exercise of the Option following the termination of the Optionholder’s Continuous Service (other
than for Cause or upon the Optionholder’s death or Disability) would be prohibited at any time solely because the issuance of shares of Common Stock would violate the registration requirements under the Securities Act, then the Option shall
terminate on the earlier of (i) the expiration of a period of three (3) months after the termination of the Optionholder’s Continuous Service during which the exercise of the Option would not be in violation of such registration
requirements, or (ii) the expiration of the term of the Option as set forth in the Option Agreement. In addition, for Options granted after the Amendment Date, unless otherwise provided in a Participant’s Award Agreement, if the sale of
any Common Stock received upon exercise of an Option following the termination of the Participant’s Continuous Service (other than for Cause) would violate the Company’s insider trading policy, then the Option shall terminate on the
earlier of (i) the expiration of a period equal to the applicable post-termination exercise period after the termination of the Participant’s Continuous Service during which the exercise of the Option would not be in violation of the
Company’s insider trading policy, or (ii) the expiration of the term of the Option as set forth in the applicable Award Agreement. 
 (h) Disability of Optionholder. In the event that an Optionholder’s Continuous Service terminates as a result of the Optionholder’s Disability, the Optionholder may exercise his or
her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of termination of Continuous Service), but only within such period of time ending on the earlier of (i) the date twelve (12) months
following such termination of Continuous Service (or such longer or shorter period specified in the Option Agreement), or (ii) the expiration of the term of the Option as set forth in the Option Agreement. If, after termination of Continuous
Service, the Optionholder does not exercise his or her Option within the time specified herein or in the Option Agreement (as applicable), the Option shall terminate. 

  
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 (i) Death of Optionholder. In the event that (i) an Optionholder’s
Continuous Service terminates as a result of the Optionholder’s death, or (ii) the Optionholder dies within the period (if any) specified in the Option Agreement after the termination of the Optionholder’s Continuous Service for a
reason other than death, then the Option may be exercised (to the extent the Optionholder was entitled to exercise such Option as of the date of death) by the Optionholder’s estate, by a person who acquired the right to exercise the Option by
bequest or inheritance or by a person designated to exercise the option upon the Optionholder’s death, but only within the period ending on the earlier of (i) the date eighteen (18) months following the date of death (or such longer
or shorter period specified in the Option Agreement); or (ii) the expiration of the term of such Option as set forth in the Option Agreement. If, after the Optionholder’s death, the Option is not exercised within the time specified herein
or in the Option Agreement (as applicable), the Option shall terminate. 
 (j) Termination for Cause. Except as
otherwise explicitly provided in an Optionholder’s Option Agreement, in the event that an Optionholder’s Continuous Service is terminated for Cause, the Option shall terminate immediately and cease to remain outstanding. 

(k) Non-Exempt Employees. No Option granted to an Employee who is a non-exempt employee for purposes of the Fair Labor Standards
Act of 1938, as amended, shall be first exercisable for any shares of Common Stock until at least six months following the date of grant of the Option. Notwithstanding the foregoing, consistent with the provisions of the Worker Economic Opportunity
Act, (i) in the event of the Optionholder’s death or Disability, (ii) upon a Corporate Transaction in which such Option is not assumed, continued, or substituted, (iii) upon a Change in Control, or (iv) upon the
Optionholder’s retirement (as such term may be defined in the Optionholder’s Option Agreement or in another applicable agreement or in accordance with the Company’s then current employment policies and guidelines), any such vested
Options may be exercised earlier than six months following the date of grant. The foregoing provision is intended to operate so that any income derived by a non-exempt employee in connection with the exercise or vesting of an Option will be exempt
from his or her regular rate of pay. 
  

	6.	PROVISIONS OF STOCK AWARDS OTHER THAN
OPTIONS. 

 (a) Restricted Stock Awards. Each Restricted
Stock Award Agreement shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. To the extent consistent with the Company’s Bylaws, at the Board’s election, shares of Common Stock may be
(x) held in book entry form subject to the Company’s instructions until any restrictions relating to the Restricted Stock Award lapse; or (y) evidenced by a certificate, which certificate shall be held in such form and manner as
determined by the Board. The terms and conditions of Restricted Stock Award Agreements may change from time to time, and the terms and conditions of separate Restricted Stock Award Agreements need not be identical, provided, however,
that each Restricted Stock Award Agreement shall conform to (through incorporation of the provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions: 

(i) Consideration. A Restricted Stock Award may be awarded in consideration for (A) cash, check, bank draft or money
order payable to the Company; (B) past or future services actually or to be rendered to the Company or an Affiliate; or (C) any other form of legal consideration that may be acceptable to the Board in its sole discretion and permissible
under applicable law. 
 (ii) Vesting. Shares of Common Stock awarded under a Restricted Stock Award Agreement may be
subject to forfeiture to the Company in accordance with a vesting schedule to be determined by the Board. 
 (iii)
Termination of Participant’s Continuous Service. In the event a Participant’s Continuous Service terminates, the Company may receive via a forfeiture condition or a repurchase right, any or all of the shares of Common Stock held
by the Participant which have not vested as of the date of termination of Continuous Service under the terms of the Restricted Stock Award Agreement. 
 (iv) Transferability. Rights to acquire shares of Common Stock under the Restricted Stock Award Agreement shall be transferable by the Participant only upon such terms and conditions as are
set forth in the Restricted Stock Award Agreement, as the Board shall determine in its sole discretion, so long as Common Stock awarded under the Restricted Stock Award Agreement remains subject to the terms of the Restricted Stock Award Agreement.

  
 7 

 (b) Restricted Stock Unit Awards. Each Restricted Stock Unit Award Agreement
shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. The terms and conditions of Restricted Stock Unit Award Agreements may change from time to time, and the terms and conditions of separate
Restricted Stock Unit Award Agreements need not be identical, provided, however, that each Restricted Stock Unit Award Agreement shall conform to (through incorporation of the provisions hereof by reference in the agreement or
otherwise) the substance of each of the following provisions: 
 (i) Consideration. At the time of grant of a
Restricted Stock Unit Award, the Board will determine the consideration, if any, to be paid by the Participant upon delivery of each share of Common Stock subject to the Restricted Stock Unit Award. The consideration to be paid (if any) by the
Participant for each share of Common Stock subject to a Restricted Stock Unit Award may be paid in any form of legal consideration that may be acceptable to the Board in its sole discretion and permissible under applicable law. 

(ii) Vesting. At the time of the grant of a Restricted Stock Unit Award, the Board may impose such restrictions or
conditions to the vesting of the Restricted Stock Unit Award as it, in its sole discretion, deems appropriate. 
 (iii)
Payment. A Restricted Stock Unit Award may be settled by the delivery of shares of Common Stock, their cash equivalent, any combination thereof or in any other form of consideration, as determined by the Board and contained in the Restricted
Stock Unit Award Agreement. 
 (iv) Additional Restrictions. At the time of the grant of a Restricted Stock Unit
Award, the Board, as it deems appropriate, may impose such restrictions or conditions that delay the delivery of the shares of Common Stock (or their cash equivalent) subject to a Restricted Stock Unit Award to a time after the vesting of such
Restricted Stock Unit Award. 
 (v) Dividend Equivalents. Dividend equivalents may be credited in respect of
shares of Common Stock covered by a Restricted Stock Unit Award, as determined by the Board and contained in the Restricted Stock Unit Award Agreement. At the sole discretion of the Board, such dividend equivalents may be converted into additional
shares of Common Stock covered by the Restricted Stock Unit Award in such manner as determined by the Board. Any additional shares covered by the Restricted Stock Unit Award credited by reason of such dividend equivalents will be subject to all the
terms and conditions of the underlying Restricted Stock Unit Award Agreement to which they relate. 
 (vi) Termination of
Participant’s Continuous Service. Except as otherwise provided in the applicable Restricted Stock Unit Award Agreement, such portion of the Restricted Stock Unit Award that has not vested will be forfeited upon the Participant’s
termination of Continuous Service. 
 (vii) Compliance with Section 409A of the Code. Notwithstanding
anything to the contrary set forth herein, any Restricted Stock Unit Award granted under the Plan that is not exempt from the requirements of Section 409A of the Code shall contain such provisions so that such Restricted Stock Unit Award will
comply with the requirements of Section 409A of the Code. Such restrictions, if any, shall be determined by the Board and contained in the Restricted Stock Unit Award Agreement evidencing such Restricted Stock Unit Award. For example, such
restrictions may include, without limitation, a requirement that any Common Stock that is to be issued in a year following the year in which the Restricted Stock Unit Award vests must be issued in accordance with a fixed pre-determined schedule.

 (c) Stock Appreciation Rights. Each Stock Appreciation Right Agreement shall be in such form and shall contain
such terms and conditions as the Board shall deem appropriate. Stock Appreciation Rights may be granted 

  
 8 

 
as stand-alone Stock Awards or in tandem with other Stock Awards. The terms and conditions of Stock Appreciation Right Agreements may change from time to time, and the terms and conditions of
separate Stock Appreciation Right Agreements need not be identical; provided, however, that each Stock Appreciation Right Agreement shall conform to (through incorporation of the provisions hereof by reference in the agreement or
otherwise) the substance of each of the following provisions: 
 (i) Term. No Stock Appreciation Right shall be
exercisable after the expiration of ten (10) years from the date of its grant or such shorter period specified in the Stock Appreciation Right Agreement. 
 (ii) Strike Price. Each Stock Appreciation Right will be denominated in shares of Common Stock equivalents. Notwithstanding anything in the applicable Stock Award Agreement to the contrary,
the strike price of each Stock Appreciation Right shall not be less than one hundred percent (100%) of the Fair Market Value of the Common Stock equivalents subject to the Stock Appreciation Right on the date of grant. 

(iii) Calculation of Appreciation. The appreciation distribution payable on the exercise of a Stock Appreciation Right will
be not greater than an amount equal to the excess of (A) the aggregate Fair Market Value (on the date of the exercise of the Stock Appreciation Right) of a number of shares of Common Stock equal to the number of share of Common Stock
equivalents in which the Participant is vested under such Stock Appreciation Right, and with respect to which the Participant is exercising the Stock Appreciation Right on such date, over (B) the aggregate strike price of the Common Stock
equivalents being exercised. 
 (iv) Vesting. At the time of the grant of a Stock Appreciation Right, the Board
may impose such restrictions or conditions to the vesting of such Stock Appreciation Right as it, in its sole discretion, deems appropriate. 
 (v) Exercise. To exercise any outstanding Stock Appreciation Right, the Participant must provide written notice of exercise to the Company in compliance with the provisions of the Stock
Appreciation Right Agreement evidencing such Stock Appreciation Right. 
 (vi) Payment. The appreciation distribution in
respect of a Stock Appreciation Right may be paid in Common Stock, in cash, in any combination of the two or in any other form of consideration, as determined by the Board and set forth in the Stock Appreciation Right Agreement evidencing such Stock
Appreciation Right. 
 (vii) Termination of Continuous Service. In the event that a Participant’s Continuous
Service terminates (other than for Cause), the Participant may exercise his or her Stock Appreciation Right (to the extent that the Participant was entitled to exercise such Stock Appreciation Right as of the date of termination of Continuous
Service) but only within such period of time ending on the earlier of (A) the date three (3) months following the termination of the Participant’s Continuous Service (or such longer or shorter period specified in the Stock
Appreciation Right Agreement), or (B) the expiration of the term of the Stock Appreciation Right as set forth in the Stock Appreciation Right Agreement. If, after termination of Continuous Service, the Participant does not exercise his or her
Stock Appreciation Right within the time specified herein or in the Stock Appreciation Right Agreement (as applicable), the Stock Appreciation Right shall terminate. 
 (viii) Termination for Cause. Except as explicitly provided otherwise in an Participant’s Stock Appreciation Right Agreement, in the event that a Participant’s Continuous Service
is terminated for Cause, the Stock Appreciation Right shall terminate upon the termination date of such Participant’s Continuous Service, and the Participant shall be prohibited from exercising his or her Stock Appreciation Right from and after
the time of such termination of Continuous Service. 
 (ix) Extension of Termination Date. If the exercise of the Stock
Appreciation Right following the termination of the Participant’s Continuous Service would either (A) be prohibited at any time solely because the issuance of shares of Common Stock would violate the registration requirements under the
Securities Act, or (B) subject the Participant to short-swing liability under Section 16(b) of the Exchange Act, then the Stock Appreciation Right shall terminate on the earlier of (x) the expiration of a period of ninety
(90) days after the termination of the Participant’s Continuous Service during which the exercise of the Stock Appreciation Right would not be in 

  
 9 

 
violation of such registration requirements and would not subject the Participant to short-swing liability under Section 16(b) of the Exchange Act, or (y) the expiration of the term of
the Stock Appreciation Right as set forth in the Stock Appreciation Right Agreement. 
 (d) Performance Awards.

 (i) Performance Stock Awards. A Performance Stock Award is either a Restricted Stock Award or Restricted Stock
Unit Award that may be granted or may vest based upon the attainment during a Performance Period of certain Performance Goals. A Performance Stock Award may, but need not, require the completion of a specified period of Continuous Service. The
length of any Performance Period, the Performance Goals to be achieved during the Performance Period, and the measure of whether and to what degree such Performance Goals have been attained shall be conclusively determined by the Committee in its
sole discretion. The maximum Performance Stock Award that may be granted in a calendar year to any Participant pursuant to this Section 6(d)(i) shall not exceed the value of 75,000 shares of Common Stock (as determined at the time of grant). In
addition, to the extent permitted by applicable law and the applicable Award Agreement, the Board may determine that cash may be used in payment of Performance Stock Awards. 
 (ii) Performance Cash Awards. A Performance Cash Award is a cash award granted pursuant to this Section 6(d)(ii) that is paid upon the attainment during a Performance Period of certain
Performance Goals. A Performance Cash Award may also require the completion of a specified period of Continuous Service. The length of any Performance Period, the Performance Goals to be achieved during the Performance Period, and the measure of
whether and to what degree such Performance Goals have been attained shall be conclusively determined by the Committee in its sole discretion. The maximum Performance Cash Award that may be granted to a Participant in a calendar year and made
subject to the future attainment of one or more Performance Goals shall not exceed $1,000,000. The Board may provide for or, subject to such terms and conditions as the Board may specify, may permit a Participant to elect for, the payment of any
Performance Cash Award to be deferred to a specified date or event. The Committee may specify the form of payment of Performance Cash Awards, which may be cash or other property, or may provide for a Participant to have the option for his or her
Performance Cash Award, or such portion thereof as the Board may specify, to be paid in whole or in part in cash or other property. In addition, to the extent permitted by applicable law and the applicable Award Agreement, the Board may determine
that Common Stock authorized under this Plan may be used in payment of Performance Cash Awards, including additional shares in excess of the Performance Cash Award as an inducement to hold shares of Common Stock. 

(iii) Section 162(m) Compliance. Unless otherwise permitted in compliance with the requirements of Section 162(m) of the
Code with respect to an Award intended to qualify as “performance-based compensation” thereunder, the Committee shall establish the Performance Goals applicable to, and the formula for calculating the amount payable under, the Award no
later than the earlier of (a) the date ninety (90) days after the commencement of the applicable Performance Period, or (b) the date on which twenty-five percent (25%) of the Performance Period has elapsed, and in any event at a
time when the achievement of the applicable Performance Goals remains substantially uncertain. Prior to the payment of any compensation under an Award intended to qualify as “performance-based compensation” under Section 162(m) of the
Code, the Committee shall certify the extent to which any Performance Goals and any other material terms under such Award have been satisfied (other than in cases where such relate solely to the increase in the value of the Common Stock).
Notwithstanding satisfaction of any completion of any Performance Goals, to the extent specified at the time of grant of an Award to “covered employees” within the meaning of Section 162(m) of the Code, the number of shares of Common
Stock, Options, cash or other benefits granted, issued, retainable and/or vested under an Award on account of satisfaction of such Performance Goals may be reduced by the Committee on the basis of such further considerations as the Committee, in its
sole discretion, shall determine. 
 (e) Other Stock Awards. Other forms of Stock Awards valued in whole or in part by
reference to, or otherwise based on, Common Stock (“Other Stock Awards”) may be granted either alone or in addition to Stock Awards provided for under Section 5 and the preceding provisions of this Section 6. Such
Other Stock Awards will be subject to a written Award Agreement between the Company and a holder of an Other Stock Award evidencing the terms and conditions of an Other Stock Award, and each Other Stock Award shall be subject to the terms and
conditions of the Plan. Subject to the provisions of the Plan, the Board shall have sole and complete authority to determine the persons to whom and the time or times at which such Other Stock Awards will be granted, the number of shares of Common
Stock (or the cash equivalent thereof) to be granted pursuant to such Other Stock Awards and all other terms and conditions of such Other Stock Awards. 

  
 10 

	7.	COVENANTS OF THE COMPANY. 

(a) Availability of Shares. During the terms of the Awards, the Company shall keep available at all times the number of
shares of Common Stock required to satisfy such Awards. 
 (b) Securities Law Compliance. The Company shall seek
to obtain from each regulatory commission or agency having jurisdiction over the Plan such authority as may be required to grant Stock Awards and to issue and sell shares of Common Stock upon exercise of the Stock Awards; provided,
however, that this undertaking shall not require the Company to register under the Securities Act the Plan, any Award or any Common Stock issued or issuable pursuant to any such Award. If, after reasonable efforts, the Company is unable to
obtain from any such regulatory commission or agency the authority that counsel for the Company deems necessary for the lawful issuance and sale of Common Stock under the Plan, the Company shall be relieved from any liability for failure to issue
and sell Common Stock upon exercise of such Awards or make payments of cash or other property in settlement of Awards unless and until such authority is obtained. A Participant shall not be eligible for the grant of a Stock Award or the subsequent
issuance of Common Stock pursuant to the Stock Award if such grant or issuance would be in violation of any applicable securities laws. 
 (c) No Obligation to Notify. The Company shall have no duty or obligation to any holder of an Award to advise such holder as to the time or manner of exercising or settling such Award.
Furthermore, the Company shall have no duty or obligation to warn or otherwise advise such holder of a pending termination or expiration of an Award or a possible period in which the Award may not be exercised or settled. The Company has no duty or
obligation to minimize the tax consequences of an Award to the holder of such Award. 
  

	8.	MISCELLANEOUS. 

 (a) Use of Proceeds. Proceeds from the sale of shares of Common Stock pursuant to Stock Awards shall constitute general funds of the Company. 

(b) Corporate Action Constituting Grant of Awards. Corporate action constituting a grant by the Company of an Award to any
Participant shall be deemed completed as of the date of such corporate action, unless otherwise determined by the Board, regardless of when the instrument, certificate, or letter evidencing the Award is communicated to, or actually received or
accepted by, the Participant. If the Board determines that the terms of an Award do not reflect the appropriate exercise, strike or purchase price on the appropriate date of grant in accordance with the requirements of the Plan, the terms of the
Award shall be automatically corrected to reflect the appropriate price or other terms provided for under the Plan, as determined by the Board, without the need for consent of the Participant; provided, however, that no such correction
shall result in a direct or indirect reduction in the exercise price or strike price of the Award. 
 (c) Stockholder
Rights. No Participant shall be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares of Common Stock subject to an Award unless and until (i) such Participant has satisfied all requirements
for exercise or settlement of the Award pursuant to its terms, and (ii) the issuance of the Common Stock pursuant to such exercise or settlement has been entered into the books and records of the Company. 

(d) No Employment or Other Service Rights. Nothing in the Plan, any Award Agreement or other instrument executed thereunder
or in connection with any Award granted pursuant to the Plan shall confer upon any Participant any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the Award was granted or shall affect the right of the
Company or an Affiliate to terminate (i) the employment of an Employee with or without notice and with or without cause, (ii) the service of a Consultant pursuant to the terms of such Consultant’s agreement with the Company or an
Affiliate, or (iii) the service of a Director pursuant to the Bylaws of the Company or an Affiliate, and any applicable provisions of the corporate law of the state in which the Company or the Affiliate is incorporated, as the case may be.

  
 11 

 (e) Incentive Stock Option $100,000 Limitation. To the extent that the
aggregate Fair Market Value (determined at the time of grant) of Common Stock with respect to which Incentive Stock Options are exercisable for the first time by any Optionholder during any calendar year (under all plans of the Company and any
Affiliates) exceeds one hundred thousand dollars ($100,000), the Options or portions thereof that exceed such limit (according to the order in which they were granted) shall be treated as Nonstatutory Stock Options, notwithstanding any contrary
provision of the applicable Option Agreement(s) or any Board or Committee resolutions related thereto. 
 (f) Investment
Assurances. The Company may require a Participant, as a condition of exercising or acquiring Common Stock under any Award, (i) to give written assurances satisfactory to the Company as to the Participant’s knowledge and
experience in financial and business matters and/or to employ a purchaser representative reasonably satisfactory to the Company who is knowledgeable and experienced in financial and business matters and that he or she is capable of evaluating, alone
or together with the purchaser representative, the merits and risks of exercising the Stock Award; and (ii) to give written assurances satisfactory to the Company stating that the Participant is acquiring Common Stock subject to the Award for
the Participant’s own account and not with any present intention of selling or otherwise distributing the Common Stock. The foregoing requirements, and any assurances given pursuant to such requirements, shall be inoperative if (x) the
issuance of the shares upon the exercise or acquisition of Common Stock under the Award has been registered under a then currently effective registration statement under the Securities Act, or (y) as to any particular requirement, a
determination is made by counsel for the Company that such requirement need not be met in the circumstances under the then applicable securities laws. The Company may, upon advice of counsel to the Company, place legends on stock certificates issued
under the Plan as such counsel deems necessary or appropriate in order to comply with applicable securities laws, including, but not limited to, legends restricting the transfer of the Common Stock. 

(g) Withholding Obligations. Unless prohibited by the terms of an Award Agreement, the Company may, in its sole discretion,
satisfy any federal, state or local tax withholding obligation relating to an Award by any of the following means (in addition to the Company’s right to withhold from any compensation paid to the Participant by the Company) or by a combination
of such means: (i) causing the Participant to tender a cash payment; (ii) withholding shares of Common Stock from the shares of Common Stock issued or otherwise issuable to the Participant in connection with the Award; provided,
however, that no shares of Common Stock are withheld with a value exceeding the minimum amount of tax required to be withheld by law (or such lower amount as may be necessary to avoid classification of the Stock Award as a liability for
financial accounting purposes); (iii) withholding cash from an Award settled in cash; (iv) withholding payment from any amounts otherwise payable to the Participant; or (v) by such other method as may be set forth in the Award
Agreement. 
 (h) Electronic Delivery. Any reference herein to a “written” agreement or document shall include
any agreement or document delivered electronically or posted on the Company’s intranet. 
 (i) Deferrals. To
the extent permitted by applicable law, the Board, in its sole discretion, may determine that the delivery of Common Stock or the payment of cash, upon the exercise, vesting or settlement of all or a portion of any Award may be deferred and may
establish programs and procedures for deferral elections to be made by Participants. Deferrals by Participants will be made in accordance with Section 409A of the Code. Consistent with Section 409A of the Code, the Board may provide for
distributions while a Participant is still an employee. The Board is authorized to make deferrals of Awards and determine when, and in what annual percentages, Participants may receive payments, including lump sum payments, following the
Participant’s termination of employment or retirement, and implement such other terms and conditions consistent with the provisions of the Plan and in accordance with applicable law. 

(j) Compliance with Section 409A. To the extent that the Board determines that any Award granted hereunder is subject
to Section 409A of the Code, the Award Agreement evidencing such Award shall incorporate the terms and conditions necessary to avoid the consequences specified in Section 409A(a)(1) of the Code. To the extent applicable, the Plan and Award
Agreements shall be interpreted in accordance with Section 409A of the Code. Notwithstanding anything to the contrary in this Plan (and unless the Award Agreement specifically provides otherwise), if the shares of Common Stock are publicly
traded and a Participant holding an Award that constitutes “deferred compensation” under Section 409A of the Code is a “specified employee” for purposes of Section 409A of the Code, no distribution or payment of any
amount shall be made upon a “separation from service” before a date that is six (6) months following the date of such Participant’s “separation from service” (as defined in Section 409A of the Code without regard
to alternative definitions thereunder) or, if earlier, the date of the Participant’s death. 
 (k) Notwithstanding
anything to the contrary contained herein, neither the Company nor any of its Affiliates shall not be responsible for, or required to reimburse or otherwise make any participant whole for, any tax or penalty imposed on, or losses incurred by, any
Participant that arises in connection with the potential or actual application of Section 409A to any Award granted hereunder. 

  
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	9.	ADJUSTMENTS UPON CHANGES IN COMMON STOCK; OTHER
CORPORATE EVENTS. 

 (a) Capitalization Adjustments.
In the event of a Capitalization Adjustment, in order to prevent diminution or enlargement of the benefits or potential benefits intended to be made available under the Plan, the Board shall appropriately and proportionately adjust: (i) the
class(es) and maximum number of securities subject to the Plan pursuant to Section 3(a); (ii) the class(es) and maximum number of securities that may be issued pursuant to the exercise of Incentive Stock Options pursuant to
Section 3(c); (iii) the class(es) and maximum number of securities that may be awarded to any person pursuant to Section 4(c) and 6(d)(i); and (iv) the class(es) and number of securities and price per share of stock subject to
outstanding Awards. The Board shall make such adjustments, and its determination shall be final, binding and conclusive. 

(b) Dissolution or Liquidation. Except as otherwise provided in a Stock Award Agreement, in the event of a dissolution or
liquidation of the Company, all outstanding Stock Awards (other than Stock Awards consisting of vested and outstanding shares of Common Stock not subject to a forfeiture condition or the Company’s right of repurchase) shall terminate
immediately prior to the completion of such dissolution or liquidation, and the shares of Common Stock subject to the Company’s repurchase rights or subject to a forfeiture condition may be repurchased or reacquired by the Company
notwithstanding the fact that the holder of such Stock Award is providing Continuous Service, provided, however, that the Board may, in its sole discretion, cause some or all Stock Awards to become fully vested, exercisable and/or no
longer subject to repurchase or forfeiture (to the extent such Stock Awards have not previously expired or terminated) before the dissolution or liquidation is completed but contingent on its completion. All other Awards that are not Stock Awards
shall be treated in accordance with the applicable Award Agreements. 
 (c) Corporate Transaction. The following
provisions shall apply to Awards in the event of a Corporate Transaction unless otherwise provided in the Award Agreement or any other applicable written agreement between the Company or any Affiliate and the holder of the Award, or unless otherwise
expressly provided by the Board at the time of grant of an Award. Except as otherwise stated in the Award Agreement, in the event of a Corporate Transaction, then, notwithstanding any other provision of the Plan, the Board shall take one or more of
the following actions with respect to Awards, contingent upon the closing or completion of the Corporate Transaction: 
 (i)
arrange for the surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s parent company) to assume or continue the Award or to substitute a similar award for the Award (including, but not limited to, an
award to acquire the same consideration paid to the stockholders of the Company pursuant to the Corporate Transaction); 

(ii) arrange for the assignment of any reacquisition or repurchase rights held by the Company in respect of Common Stock issued
pursuant to the Award to the surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s parent company); 
 (iii) accelerate the vesting of the Award (and, if applicable, the time at which the Award may be exercised or settled) to a date prior to the effective time of such Corporate Transaction as the
Board shall determine (or, if the Board shall not determine such a date, to the date that is five (5) days prior to the effective date of the Corporate Transaction), with such Award terminating if not exercised (if applicable) at or prior to
the effective time of the Corporate Transaction; 
 (iv) arrange for the lapse of any reacquisition or repurchase rights
held by the Company with respect to the Award; 

  
 13 

 (v) cancel or arrange for the cancellation of the Award, to the extent not vested or
not exercised or settled prior to the effective time of the Corporate Transaction, in exchange for such cash consideration, if any, as the Board, in its sole discretion, may consider appropriate; and 

(vi) the payment, in such form as may be determined by the Board equal to the excess, if any, of (A) the value of the
property the holder of the Award would have received upon the exercise or settlement of the Award, over (B) any exercise or purchase price payable by such holder in connection with such exercise or settlement. 

The Board need not take the same action with respect to all Awards or with respect to all Participants. 

(d) Change in Control. An Award may be subject to additional acceleration of vesting and exercisability upon or after a
Change in Control as may be provided in the Award Agreement for such Award or as may be provided in any applicable written agreement between the Company or any Affiliate and the Participant. An Award may vest as to all or any portion of the cash or
shares subject to the Award (i) immediately upon the occurrence of a Change in Control, whether or not such Award is assumed, continued, or substituted by a surviving or acquiring entity in the Change in Control, or (ii) in the event a
Participant’s Continuous Service is terminated, actually or constructively, within a designated period following the occurrence of a Change in Control. In the absence of such provisions, no such acceleration shall occur. 

 

	10.	TERMINATION OR SUSPENSION OF THE PLAN.

 (a) Plan Term. The Board may suspend or terminate the Plan at any time. Unless terminated
sooner, the Plan shall terminate on the day before the tenth (10th) anniversary of the earlier of (i) the date the Plan is adopted by the Board, or (ii) the date the Plan is approved by the stockholders of the Company. No Awards may
be granted under the Plan while the Plan is suspended or after it is terminated. 
 (b) No Impairment of Rights.
Suspension or termination of the Plan shall not impair rights and obligations under any Award granted while the Plan is in effect except with the written consent of the affected Participant. 

 

	11.	EFFECTIVE DATE OF PLAN. 

The Plan shall become effective on the date it is first approved by the Board, but no Stock Award shall be exercised (or, in the case of a
Restricted Stock Award, Restricted Stock Unit Award, Performance Stock Award, or Other Stock Award shall be granted and no Performance Cash Award shall be settled) unless and until the Plan has been approved by the Stockholders of the Company, which
approval shall be within twelve (12) months before or after the date the Plan is adopted by the Board. 
  

	12.	CHOICE OF LAW. 

The law of the State of California shall govern all questions concerning the construction, validity and interpretation of this Plan,
without regard to that state’s conflict of laws rules. 
  

	13.	DEFINITIONS. 

 As used in the Plan, the following definitions shall apply to the capitalized terms indicated below: 
 (a) “Affiliate” means, at the time of determination, any “parent” or “subsidiary” of the Company as such terms are defined in Rule 405 of the Securities
Act. The Board shall have the authority to determine the time or times at which “parent” or “subsidiary” status is determined within the foregoing definition. 

(b) “Annual Meeting” means the annual meeting of the stockholders of the Company. 

(c) “Award” means a Stock Award or a Performance Cash Award. 

  
 14 

 (d) “Award Agreement” means a Stock Award Agreement or the
written terms of a Performance Cash Award. Each Award Agreement shall be subject to the terms and conditions of the Plan. 

(e) “Board” means the Board of Directors of the Company. 

(f) “Capitalization Adjustment” means any change that is made in, or other events that occur with respect
to, the Common Stock subject to the Plan or subject to any Stock Award after the Effective Date without the receipt of consideration by the Company through merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend,
dividend in property other than cash, stock split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure or any similar equity restructuring transaction not involving the receipt of consideration by the
Company. Notwithstanding the foregoing, the conversion of any convertible securities of the Company shall not be treated as a transaction “without the receipt of consideration” by the Company. 

(g) “Cause” means with respect to a Participant, the occurrence of any of the following events:
(i) such Participant’s commission of any felony or any crime involving fraud, dishonesty or moral turpitude under the laws of the United States or any state thereof; (ii) such Participant’s attempted commission of, or
participation in, a fraud or act of dishonesty against the Company; (iii) such Participant’s intentional, material violation of any contract or agreement between the Participant and the Company or of any statutory duty owed to the Company;
(iv) such Participant’s unauthorized use or disclosure of the Company’s confidential information or trade secrets; or (v) such Participant’s gross misconduct. The determination that a termination of the Participant’s
Continuous Service is either for Cause or without Cause shall be made by the Company in its sole discretion. Any determination by the Company that the Continuous Service of a Participant was terminated with or without Cause for the purposes of
outstanding Awards held by such Participant shall have no effect upon any determination of the rights or obligations of the Company or such Participant for any other purpose. 
 Notwithstanding the foregoing or any other provision of this Plan, the definition of Cause (or any analogous term) in an individual written agreement between the Company or any Affiliate and the
Participant shall supersede the foregoing definition with respect to Awards subject to such agreement; provided, however, that if no definition of Cause or any analogous term is set forth in such an individual written agreement, the foregoing
definition shall apply. 
 (h) “Change in Control” means the occurrence, in a single transaction
or in a series of related transactions, of any one or more of the following events: 
 (i) any Exchange Act Person
becomes the Owner, directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities other than by virtue of a merger, consolidation or
similar transaction. Notwithstanding the foregoing, a Change in Control shall not be deemed to occur (A) on account of the acquisition of securities of the Company by an investor, any affiliate thereof or any other Exchange Act Person from the
Company in a transaction or series of related transactions the primary purpose of which is to obtain financing for the Company through the issuance of equity securities or (B) solely because the level of Ownership held by any Exchange Act
Person (the “Subject Person”) exceeds the designated percentage threshold of the outstanding voting securities as a result of a repurchase or other acquisition of voting securities by the Company reducing the number of shares
outstanding, provided that if a Change in Control would occur (but for the operation of this sentence) as a result of the acquisition of voting securities by the Company, and after such share acquisition, the Subject Person becomes the Owner of any
additional voting securities that, assuming the repurchase or other acquisition had not occurred, increases the percentage of the then outstanding voting securities Owned by the Subject Person over the designated percentage threshold, then a Change
in Control shall be deemed to occur; 
 (ii) there is consummated a merger, consolidation or similar transaction
involving (directly or indirectly) the Company and, immediately after the consummation of such merger, consolidation or similar transaction, the stockholders of the Company immediately prior thereto do not Own, directly or indirectly, either
(A) outstanding voting securities representing more than fifty percent (50%) of the combined outstanding voting power of the surviving Entity in such merger, consolidation or similar transaction or (B) more than fifty percent
(50%) of the combined outstanding voting power of the parent of the surviving Entity in such merger, consolidation or similar transaction, in each case in substantially the same proportions as their Ownership of the outstanding voting
securities of the Company immediately prior to such transaction; or 
 (iii) there is consummated a sale, lease,
exclusive license or other disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries, other than a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the
Company and its Subsidiaries to an Entity, more than fifty percent (50%) of the combined voting power of the voting securities of which are Owned by stockholders of the Company in substantially the same proportions as their Ownership of the
outstanding voting securities of the Company immediately prior to such sale, lease, license or other disposition. 

  
 15 

 For avoidance of doubt, the term Change in Control shall not include a sale of assets,
merger or other transaction effected exclusively for the purpose of changing the domicile of the Company. 
 Notwithstanding the
foregoing or any other provision of the Plan, the definition of Change in Control (or any analogous term) in an individual written agreement between the Company or any Affiliate and the Participant shall supersede the foregoing definition with
respect to Awards subject to such agreement; provided, however, that if no definition of Change in Control or any analogous term is set forth in such an individual written agreement, the foregoing definition shall apply. 

(i) “Code” means the Internal Revenue Code of 1986, as amended. 

(j) “Committee” means a committee of one (1) or more Directors to whom authority has been delegated
by the Board in accordance with Section 2(c). 
 (k) “Common Stock” means the common stock
of the Company. 
 (l) “Company” means Procera Networks, Inc., a Nevada corporation. 

(m) “Consultant” means any person, including an advisor, who is (i) engaged by the Company or an
Affiliate to render consulting or advisory services and is compensated for such services, or (ii) serving as a member of the board of directors of an Affiliate and is compensated for such services. However, service solely as a Director, or
payment of a fee for such service, shall not cause a Director to be considered a “Consultant” for purposes of the Plan. Notwithstanding the foregoing, a person is treated as a Consultant under this Plan only if a Form S-8 Registration
Statement under the Securities Act is available to register either the offer or the sale of the Company’s securities to such person. 
 (n) “Continuous Service” means that the Participant’s service with the Company or an Affiliate, whether as an Employee, Director or Consultant, is not interrupted or
terminated. A change in the capacity in which the Participant renders service to the Company or an Affiliate as an Employee, Consultant or Director or a change in the entity for which the Participant renders such service, provided that there is no
interruption or termination of the Participant’s service with the Company or an Affiliate, shall not, by itself, terminate a Participant’s Continuous Service; provided, however, if the Entity for which a Participant is
rendering services ceases to qualify as an “Affiliate,” as determined by the Board in its sole discretion, such Participant’s Continuous Service shall be considered to have terminated on the date such Entity ceases to qualify as an
Affiliate. To the extent a Participant, upon a change in capacity of service, ceases to provide service at a rate of more than 20% of his or her rate of service (immediately prior to the change in capacity), such Participant may be deemed to have
suffered a termination of Continuous Service. To the extent permitted by law, the Board or the chief executive officer of the Company, in that party’s sole discretion, may determine whether Continuous Service shall be considered interrupted in
the case of: (i) any leave of absence approved by the Board of the chief executive officer of the Company, including sick leave, military leave or any other personal leave; or (ii) transfers between the Company, an Affiliate, or their
successors. Notwithstanding the foregoing, and except as otherwise required by applicable law or as otherwise determined by the Company, a leave of absence shall be treated as Continuous Service for purposes of vesting in a Stock Award only to such
extent as may be provided in the Company’s leave of absence policy, in the written terms of any leave of absence agreement or policy applicable to the Participant, or as otherwise required by law. 

  
 16 

 (o) “Corporate Transaction” means the occurrence, in a single
transaction or in a series of related transactions, of any one or more of the following events: 
 (i) the consummation
of a sale or other disposition of all or substantially all, as determined by the Board in its sole discretion, of the consolidated assets of the Company and its Subsidiaries; 
 (ii) the consummation of a sale or other disposition of at least ninety percent (90%) of the outstanding securities of the Company; 

(iii) the consummation of a merger, consolidation or similar transaction following which the Company is not the surviving
corporation; or 
 (iv) the consummation of a merger, consolidation or similar transaction following which the Company is
the surviving corporation but the shares of Common Stock outstanding immediately preceding the merger, consolidation or similar transaction are converted or exchanged by virtue of the merger, consolidation or similar transaction into other property,
whether in the form of securities, cash or otherwise. 
 (p) “Covered Employee” shall have the
meaning provided in Section 162(m)(3) of the Code and the regulations promulgated thereunder. 
 (q)
“Director” means a member of the Board. 
 (r) “Disability” means,
with respect to a Participant, the inability of such Participant to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last
for a continuous period of not less than 12 months, as provided in Section 22(e)(3) and 409A(a)(2)(c)(i) of the Code. 

(s) “Effective Date” means the effective date of the Plan as set forth in Section 11. 

(t) “Employee” means any person employed by the Company or an Affiliate. However, service solely as a
Director, or payment of a fee for such services, shall not cause a Director to be considered an “Employee” for purposes of the Plan. 
 (u) “Entity” means a corporation, partnership, limited liability company or other entity. 
 (v) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 (w) “Exchange Act Person” means any natural person, Entity or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act), except that
“Exchange Act Person” shall not include (i) the Company or any Subsidiary of the Company, (ii) any employee benefit plan of the Company or any Subsidiary of the Company or any trustee or other fiduciary holding securities under
an employee benefit plan of the Company or any Subsidiary of the Company, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, (iv) an Entity Owned, directly or indirectly, by the stockholders of
the Company in substantially the same proportions as their Ownership of stock of the Company; or (v) any natural person, Entity or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act) that, as of the
Effective Date, is the Owner, directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities. 

(x) “Fair Market Value” means, as of any date, the value of the Common Stock determined as follows:

 (i) If the Common Stock is listed on any established stock exchange or traded on any established market, the Fair
Market Value of a share of Common Stock shall be the closing sales price for such stock as quoted on such exchange or market (or the exchange or market with the greatest volume of trading in the Common Stock) on the date of determination, as
reported in a source the Board deems reliable. 

  
 17 

 (ii) Unless otherwise provided by the Board, if there is no closing sales price for
the Common Stock on the date of determination, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists. 
 (iii) In the absence of such markets for the Common Stock, the Fair Market Value shall be determined by the Board in good faith and in a manner that complies with Sections 409A and 422 of the Code.

 (y) “Incentive Stock Option” means an Option which qualifies as an “incentive stock
option” within the meaning of Section 422 of the Code and the regulations promulgated thereunder. 
 (z)
“Non-Employee Director” means a Director who either (i) is not a current employee or officer of the Company or an Affiliate, does not receive compensation, either directly or indirectly, from the Company or an
Affiliate for services rendered as a consultant or in any capacity other than as a Director (except for an amount as to which disclosure would not be required under Item 404(a) of Regulation S-K promulgated pursuant to the Securities Act
(“Regulation S-K”)), does not possess an interest in any other transaction for which disclosure would be required under Item 404(a) of Regulation S-K, and is not engaged in a business relationship for which disclosure
would be required pursuant to Item 404(b) of Regulation S-K; or (ii) is otherwise considered a “non-employee director” for purposes of Rule 16b-3. 
 (aa) “Nonstatutory Stock Option” means an Option that does not qualify as an Incentive Stock Option. 

(bb) “Officer” means any person designated by the Company as an officer; provided, however, that at any
time that any class of the equity securities of the Company is registered pursuant to Section 12 of the Exchange Act, “Officer” shall mean a person who is an officer of the Company within the meaning of Section 16 of the Exchange
Act and the rules and regulations promulgated thereunder. 
 (cc) “Option” means an Incentive
Stock Option or a Nonstatutory Stock Option to purchase shares of Common Stock granted pursuant to the Plan. 
 (dd)
“Option Agreement” means a written agreement between the Company and an Optionholder evidencing the terms and conditions of an Option grant. Each Option Agreement shall be subject to the terms and conditions of the Plan.

 (ee) “Optionholder” means a person to whom an Option is granted pursuant to the Plan or, if
applicable, such other person who holds an outstanding Option. 
 (ff) “Other Stock Award” means
an award based in whole or in part by reference to the Common Stock which is granted pursuant to the terms and conditions of Section 6(d). 
 (gg) “Outside Director” means a Director who either (i) is not a current employee of the Company or an “affiliated corporation” (within the meaning of
Treasury Regulations promulgated under Section 162(m) of the Code), is not a former employee of the Company or an “affiliated corporation” who receives compensation for prior services (other than benefits under a tax-qualified
retirement plan) during the taxable year, has not been an officer of the Company or an “affiliated corporation,” and does not receive remuneration from the Company or an “affiliated corporation,” either directly or indirectly, in
any capacity other than as a Director, or (ii) is otherwise considered an “outside director” for purposes of Section 162(m) of the Code. 
 (hh) “Own,” “Owned,” “Owner,” “Ownership” A person or Entity shall be deemed to “Own,” to
have “Owned,” to be the “Owner” of, or to have acquired “Ownership” of securities if such person or Entity, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or
shares voting power, which includes the power to vote or to direct the voting, with respect to such securities. 
 (ii)
“Participant” means a person to whom an Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Award. 

  
 18 

 (jj) “Performance Criteria” means the one or more criteria
that the Board shall select for purposes of establishing the Performance Goals for a Performance Period. The Performance Criteria that shall be used to establish such Performance Goals may be based on any one of, or combination of, on a U.S.
generally accepted accounting standards or non-generally accepted accounting standards basis, the following: (i) earnings per share; (ii) earnings before interest, taxes and depreciation; (iii) earnings before interest, taxes,
depreciation and amortization (EBITDA); (iv) total stockholder return; (v) return on equity; (vi) return on assets, investment, or capital employed; (vii) operating margin; (viii) gross margin; (ix) operating income;
(x) net income (before or after taxes); (xi) net operating income; (xii) net operating income after tax; (xiii) pre- and after-tax income; (xiv) pre-tax profit; (xv) operating cash flow; (xvi) sales or revenue
targets; (xvii) orders and revenue; (xviii) increases in revenue or product revenue; (xix) expenses and cost reduction goals; (xx) improvement in or attainment of expense levels; (xxi) improvement in or attainment of working
capital levels; (xxii) economic value added (or an equivalent metric); (xxiii) market share; (xxiv) cash flow; (xxv) cash flow per share; (xxvi) share price performance; (xxvii) debt reduction;
(xxviii) implementation or completion of projects or processes; (xxix) customer satisfaction; (xxx) stockholders’ equity; (xxxi) quality measures; and (xxxii) to the extent that a Stock Award is not intended to comply
with Section 162(m) of the Code, other measures of performance selected by the Board. Partial achievement of the specified criteria may result in the payment or vesting corresponding to the degree of achievement as specified in the Award
Agreement. The Board shall, in its sole discretion, define the manner of calculating the Performance Criteria it selects to use for such Performance Period. 
 (kk) “Performance Goals” means, for a Performance Period, the one or more goals established by the Board for the Performance Period based upon the satisfaction of the
Performance Criteria. Performance Goals may be based on a Company-wide basis, with respect to one or more business units, divisions, Affiliates, or business segments, and in either absolute terms or relative to the performance of one or more
comparable companies or the performance of one or more relevant indices. Unless specified otherwise by the Board (i) in the Award Agreement at the time the Award is granted or (ii) in such other document setting forth the Performance Goals
at the time the Performance Goals are established, the Board shall appropriately make adjustments in the method of calculating the attainment of Performance Goals for a Performance Period as follows: (i) to exclude restructuring and/or other
nonrecurring charges; (ii) to exclude exchange rate effects, as applicable, for non-U.S. dollar denominated net sales and operating earnings; (iii) to exclude the effects of changes to generally accepted accounting standards required by
the Financial Accounting Standards Board; (iv) to exclude the effects of any statutory adjustments to corporate tax rates; and (v) to exclude the effects of any “extraordinary items” as determined under generally accepted
accounting principles. In addition, the Board retains the discretion to reduce or eliminate the compensation or economic benefit due upon attainment of Performance Goals. 
 (ll) “Performance Period” means one or more periods of time, which may be of varying and overlapping duration, as the Committee may select, over which the attainment of one
or more Performance Goals will be measured for the purpose of determining a Participant’s right to and the payment of a Performance Stock Award or a Performance Cash Award. 

(mm) “Performance Stock Award” means a Restricted Stock Award or Restricted Stock Unit Award which is
granted pursuant to the terms and conditions of Section 6(d)(i). 
 (nn) “Plan” means this
Procera Networks, Inc. 2007 Equity Incentive Plan. 
 (oo) “Prior Plans” means the Company’s
2003 Stock Option Plan and 2004 Stock Option Plan, as in effect immediately prior to the Effective Date. 
 (pp)
“Restricted Stock Award” means an award of shares of Common Stock which is granted pursuant to the terms and conditions of Section 6(a). 
 (qq) “Restricted Stock Award Agreement” means a written agreement between the Company and a holder of a Restricted Stock Award evidencing the terms and conditions of a
Restricted Stock Award grant. Each Restricted Stock Award Agreement shall be subject to the terms and conditions of the Plan. 

(rr) “Restricted Stock Unit Award” means a right to receive shares of Common Stock which is granted
pursuant to the terms and conditions of Section 6(b). 

  
 19 

 (ss) “Restricted Stock Unit Award Agreement” means a written
agreement between the Company and a holder of a Restricted Stock Unit Award evidencing the terms and conditions of a Restricted Stock Unit Award grant. Each Restricted Stock Unit Award Agreement shall be subject to the terms and conditions of the
Plan. 
 (tt) “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor
to Rule 16b-3, as in effect from time to time. 
 (uu) “Securities Act” means the Securities Act
of 1933, as amended. 
 (vv) “Stock Appreciation Right” means a right to receive the appreciation
on Common Stock that is granted pursuant to the terms and conditions of Section 6(c). 
 (ww) “Stock
Appreciation Right Agreement” means a written agreement between the Company and a holder of a Stock Appreciation Right evidencing the terms and conditions of a Stock Appreciation Right grant. Each Stock Appreciation Right Agreement
shall be subject to the terms and conditions of the Plan. 
 (xx) “Stock Award” means any right
to receive Common Stock granted under the Plan, including an Option, a Restricted Stock Award, a Restricted Stock Unit Award, a Stock Appreciation Right, a Performance Stock Award, or Other Stock Award. 

(yy) “Stock Award Agreement” means a written agreement between the Company and a Participant evidencing
the terms and conditions of a Stock Award grant. Each Stock Award Agreement shall be subject to the terms and conditions of the Plan. 
 (zz) “Subsidiary” means, with respect to the Company, (i) any corporation of which more than fifty percent (50%) of the outstanding capital stock having ordinary
voting power to elect a majority of the board of directors of such corporation (irrespective of whether, at the time, stock of any other class or classes of such corporation shall have or might have voting power by reason of the happening of any
contingency) is at the time, directly or indirectly, Owned by the Company, and (ii) any partnership, limited liability company or other entity in which the Company has a direct or indirect interest (whether in the form of voting or
participation in profits or capital contribution) of more than fifty percent (50%). 
 (aaa) “Ten Percent
Stockholder” means a person who Owns (or is deemed to Own pursuant to Section 424(d) of the Code) stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any
Affiliate. 

  
 20

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