Document:

Subscription Agreement

 Exhibit 10.1 
 Execution Version 
 SUBSCRIPTION AGREEMENT 

THIS SUBSCRIPTION AGREEMENT (this “Agreement”) is entered into on January 26, 2011 between LIGHTING SCIENCE
GROUP CORPORATION, a Delaware corporation (the “Company”) and the undersigned Purchasers (each a “Purchaser”). 
 WHEREAS, each Purchaser has agreed to purchase that number of shares of the Company’s common stock, par value $0.001 per share (“Common Stock”), as set forth below its
signature hereto at a price of $3.30 per share (the “Purchaser Shares”), and an aggregate purchase price as set forth below its signature hereto (the “Consideration”). 

NOW, THEREFORE, in consideration of the mutual agreements herein contained, the parties hereto agree as follows: 

1. Purchase and Sale of Common Stock. Each Purchaser shall purchase from the Company and the Company shall sell to such Purchaser
its respective Purchaser Shares in accordance with the terms and conditions of this Agreement. 
 2. Payment for Common
Stock; Delivery of Certificate. On or prior to the date hereof, each Purchaser shall transmit, or cause to be transmitted, by wire transfer of immediately available funds to the Company, in accordance with the wire transfer instructions
previously delivered to such Purchaser, an amount equal to such Purchaser’s Consideration. On or promptly following the date hereof, the Company shall deliver to each Purchaser in accordance with this Agreement a certificate representing the
Purchaser Shares. The foregoing notwithstanding, if any Purchaser fails to comply with its obligations under this Section 2, the Company shall have the right (but not the obligation) to offer such Purchaser’s Purchaser Shares to a
third party or parties so long as such party or parties agree to be bound by the terms and conditions of this Agreement. 
 3.
Opinion of Counsel. On the date hereof, Haynes and Boone, LLP, counsel for the Company, shall have delivered to each Purchaser from whom the Company has received such Purchaser’s Consideration, a usual and customary opinion with respect
to the issuance of the Common Stock offered hereby. 
 4. Company Representations and Warranties. The Company represents
and warrants to each Purchaser that as of the date hereof: 
 (a) The Company is a corporation duly incorporated,
validly existing and in good standing under the laws of the State of Delaware and has the requisite corporate power to own its properties and carry on its business as presently conducted. 

(b) The issuance, sale and delivery of such Purchaser’s Purchaser Shares in accordance with this Agreement have been
duly authorized by all necessary corporate action on the part of the Company. 
 (c) This Agreement constitutes
the legal, valid and binding obligation of the Company, enforceable in accordance with its terms, and the execution, delivery and performance of this Agreement by the Company does not and will not conflict with, violate or cause a breach of any
agreement, contract or instrument to which the Company is a party or any judgment, order or decree to which the Company is subject. 

 (d) Capitalization 

 

	 	i.	Schedule 4(d)(i) attached hereto sets forth a true, complete and correct listing, as of the date hereof (after giving effect to all of the transactions
contemplated by this Agreement) of all of the Company’s outstanding: (i) shares of Common Stock; (ii) shares of preferred stock (“Preferred Stock”), and (iii) securities convertible into or exchangeable
for shares of Common Stock (the “Derivative Securities”), including the applicable exercise price of such Derivative Securities (after giving effect to all of the transactions contemplated by this Agreement), other than any
Derivative Securities issued pursuant to the Company’s Amended and Restated Equity-Based Compensation Plan (the “Management Equity”). 

 

	 	ii.	Except for the Derivative Securities, any Management Equity and the Purchaser Shares to be issued or issuable pursuant to this Agreement, no subscription, warrant,
option, convertible security, stock appreciation or other right (contingent or other) to purchase or acquire any shares of any class of capital stock of the Company or any of its Subsidiaries (as hereinafter defined) is authorized or outstanding,
and except for the Derivative Securities, the Management Equity, and the Purchaser Shares, there is not any commitment of the Company or any of its Subsidiaries to issue any shares, warrants, options or other such rights or to distribute to holders
of any class of its capital stock, any evidences of indebtedness or assets. As used in this Agreement, “Subsidiary” means, with respect to the Company, any corporation, association or other business entity of which more than
50% of the total voting power of shares of capital stock or other ownership interest entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or
controlled, directly or indirectly, by the Company or one or more of the other Subsidiaries of the Company or a combination thereof. 

 (e) SEC Reports; Financial Statements 
  

	 	i.	As of their respective filing dates, the most recent Form 10-K and Form 10-Q filed by the Company with the Securities and Exchange Commission (the
“SEC,” and such filings, the “Company SEC Documents”) complied in all material respects with the applicable requirements of the Securities Act of 1933, as amended (the “1933
Act”), the Securities Exchange Act of 1934, as amended (the “1934 Act”), and the Sarbanes-Oxley Act of 2002, as the case may be, including, in each case, the rules and regulations promulgated thereunder.

  
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	 	ii.	Except to the extent that information contained in any Company SEC Document has been revised or superseded by a document the Company subsequently filed with the SEC,
none of the Company SEC Documents contains any untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they
were made, not misleading. 

  

	 	iii.	The financial statements (including the related notes thereto) included (or incorporated by reference) in the Company SEC Documents comply as to form in all material
respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto, have been prepared in accordance with generally accepted accounting principles (“GAAP”) (except, in the
case of unaudited statements, as permitted by Form 10-Q of the SEC) applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto) and fairly present in all material respects the consolidated financial
position of the Company and its subsidiaries as of the dates thereof and their respective consolidated results of operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal and recurring year-end
audit adjustments that were not, or are not expected to be, material in amount), all in accordance with GAAP and the applicable rules and regulations promulgated by the SEC. Since November 12, 2010, the Company has not made any change in the
accounting practices or policies applied in the preparation of its financial statements, except as required by GAAP, the rules of the SEC or policy or applicable law. 

 

	 	iv.	Subsequent to the filing of the Company’s most recent financial statements with the SEC, there has been no material and adverse change or development, or event
involving such a prospective change, in the condition, business, properties or results of operations of the Company and its subsidiaries. 

  

	 	(f)	The Company agrees and acknowledges that the Purchaser Shares to be acquired by Pegasus Partners IV, L.P. (“Pegasus”) are subject to that
certain Amended and Restated Registration Rights Agreement, dated as of January 23, 2009, by and between the Company and Pegasus, and any registration rights agreement entered into pursuant to Section 5.03 of that certain Stock Repurchase,
Exchange and Recapitalization Agreement, dated as of September 30, 2010, by and among the Company, Pegasus and LED Holdings, LLC (collectively, the “Registration Rights Agreements”), and that such Purchaser Shares shall
constitute Registrable Securities (as defined therein). 

  

	 	(g)	The offer and sale of the Purchaser Shares by the Company to the several Purchasers in the manner contemplated by this Agreement will be exempt from the registration
requirements of the 1933 Act. 

  
 3 

 5. Purchaser Representations and Warranties. Each Purchaser severally but not jointly
represents and warrants to the Company that as of the date hereof: 
 (a) Purchaser has the full power and
authority to execute and deliver this Agreement and to perform all of its obligations hereunder and thereunder, and to purchase, acquire and accept delivery of its Purchaser Shares. 

(b) Its Purchaser Shares are being acquired for Purchaser’s own account and not with a view to, or intention of,
distribution thereof in violation of the 1933 Act, or any applicable state securities laws. 
 (c) Purchaser will
not make any sale, transfer or other disposition of the Purchaser Shares in violation of the 1933 Act, the 1934 Act, as amended, the rules and regulations promulgated thereunder or any applicable state securities laws. 

(d) Purchaser is sophisticated in financial matters and is able to evaluate the risks and benefits of an investment in the
Purchaser Shares. Purchaser understands and acknowledges that such investment is a speculative venture, involves a high degree of risk and is subject to complete risk of loss. Purchaser has carefully considered and has, to the extent Purchaser deems
necessary, discussed with Purchaser’s professional legal, tax, accounting and financial advisers the suitability of its investment in the Common Stock. 
 (e) Purchaser is able to bear the economic risk of its investment in its Purchaser Shares for an indefinite period of time because its Purchaser Shares have not been registered under the 1933 Act and,
therefore, cannot be sold unless subsequently registered under the 1933 Act or an exemption from such registration is available. Purchaser: (i) understands and acknowledges that the Purchaser Shares being issued to Purchaser have not been
registered under the 1933 Act, nor under the securities laws of any state, nor under the laws of any other country and (ii) recognizes that no public agency has passed upon the accuracy or adequacy of any information provided to Purchaser or
the fairness of the terms of its investment in its Purchaser Shares. 
 (f) Purchaser has had an opportunity to
ask questions and receive answers concerning the terms and conditions of the offering of the Common Stock and has had full access to such other information concerning the Company as has been requested. 

(g) This Agreement constitutes the legal, valid and binding obligation of Purchaser, enforceable in accordance with its
terms, and the execution, delivery and performance of this Agreement by Purchaser does not and will not conflict with, violate or cause a breach of any agreement, contract or instrument to which Purchaser is a party or any judgment, order or decree
to which Purchaser is subject. 
 (h) Purchaser became aware of the offering of the Purchaser Shares other than
by means of general advertising or general solicitation. 
 (i) Purchaser is an “accredited
investor” as that term is defined under the 1933 Act and Regulation D promulgated thereunder, as amended by Section 413 of the Private Fund Investment Advisers Registration Act of 2010 and any applicable rules or regulations
or interpretations thereof promulgated by the SEC or its staff. 

  
 4 

 (j) Purchaser acknowledges that the certificates for its Purchaser Shares
will contain a legend substantially as follows: 
 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE. THE SECURITIES MAY NOT BE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR
PURSUANT TO AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS. 
 THE COMPANY MAY REQUEST A WRITTEN OPINION
OF COUNSEL (WHICH OPINION AND COUNSEL SHALL BE REASONABLY SATISFACTORY TO THE COMPANY) TO THE EFFECT THAT REGISTRATION IS NOT REQUIRED IN CONNECTION WITH AN OFFER, SALE OR TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE.” 

Subject to any lock-up or other similar agreement that may apply to the Purchaser Shares, the requirement that the Purchaser Shares
contain the legend set forth in clause (j) above shall cease and terminate upon the earlier of (i) when such shares are transferred pursuant to Rule 144 under the 1933 Act or (ii) when such shares are transferred in any other
transaction if the transferor delivers to the Company a written opinion of counsel (which opinion and counsel shall be reasonably satisfactory to the Company) to the effect that such legend is no longer necessary in order to protect the Company
against a violation by it of the 1933 Act upon any sale or other disposition of such shares without registration thereunder. Upon the consummation of an event described in (i) or (ii) above, the Company, upon surrender of certificates
containing such legend, shall, at its own expense, deliver to the holder of any such shares as to which the requirement for such legend shall have terminated, one or more new certificates evidencing such shares not bearing such legend. 

6. General Provisions. 
 (a) Default. A default by any Purchaser of its obligations under Section 2 of this Agreement shall not constitute a default by any other Purchaser under this Agreement and, except with
respect to such defaulting Purchaser, shall not relieve the Company of any of its obligations to any other Purchaser under this Agreement. 
 (b) Choice of Law. The laws of the State of New York without reference to the conflict of laws provisions thereof, will govern all questions concerning the construction, validity and interpretation
of this Agreement. 
 (c) Legal Expenses. The Company agrees that, on the date hereof, it will pay up to
$50,000 to Akin Gump Strauss Hauer & Feld LLP (“Akin Gump”), counsel to Pegasus, for legal fees incurred by Pegasus in connection with this Agreement and the transactions contemplated hereby. Such payment shall be
transmitted by wire transfer of immediately available funds to an account previously designated by Akin Gump. 

  
 5 

 (d) Amendment and Waiver. The provisions of this Agreement may be
amended and waived only with the prior written consent of the Company and Purchaser. 
 (e) Counterparts.
This Agreement may be executed in counterparts, each of which shall be an original and all of which shall constitute a single agreement. 
 (f) Acceptance by the Company. It is understood that this subscription is not binding on the Company until the Company accepts it, which acceptance is at the sole discretion of the Company and
shall be noted by execution of this Agreement by the Company where indicated. 
 (g) Stockholder. Each
Purchaser hereby acknowledges that, once accepted by the Company, this subscription is not revocable by Purchaser. Each Purchaser agrees that, if this subscription is accepted, such Purchaser shall, and such Purchaser hereby elects to:
(i) become a stockholder of the Company; (ii) be bound by the terms and provisions hereof; and (iii) execute any and all further documents when and as reasonably requested by the Company in connection with the transactions
contemplated by this Agreement. 
 * * * * * 

  
 6 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be effective as of
the date first written above. 
  

			
	COMPANY:
	
	LIGHTING SCIENCE GROUP CORPORATION
		
	By:	 	 /s/ Gregory T. Kaiser

	Name:  Gregory T. Kaiser
	Title:    CFO

 Signature Page to Subscription Agreement 

 
			
	PURCHASERS:
	
	PEGASUS PARTNERS IV, L.P.
	
	By: Pegasus Investors IV, L.P., its general partner
	
	By: Pegasus Investors IV GP, L.L.C., its general partner

			
		
	By:	 	 /s/ Steven
Wacaster

			
	Name:	 	Steven Wacaster
	Title:	 	VP
	
	Purchaser Shares: 2,969,697
	
	Consideration: $9,800,000.50

Signature Page to Subscription Agreement 

 Other Agreements. By signing below and as a condition to the purchase and sale of the
Purchaser Shares, the undersigned Purchaser hereby agrees: (i) that, prior to March 31, 2011, such Purchaser shall not sell or dispose of any equity securities of the Company (or any subsidiary) held by it (whether or not vested),
including, without limitation, any Purchaser Shares or other shares of common stock, options, restricted stock, restricted stock units or any other equity securities (“Restricted Securities”), (ii) that in addition to,
and not in lieu of, the foregoing, such Purchaser shall not sell or dispose of any Restricted Securities beginning from the filing of any registration statement for the offer of any Restricted Securities by the Company (or any subsidiary) through
the earlier of the withdrawal of such registration statement or expiration of any lock-up period executed by such Purchaser, and (iii) that such Purchaser will execute any lock-up or other similar agreement as may be reasonably requested by any
underwriters in respect of a public offering of any Restricted Securities, but in no event shall such agreement be effective for a shorter period than such underwriters may require of Pegasus (or any subsidiary). It is intended that, notwithstanding
anything herein to the contrary, Pegasus is an intended third-party beneficiary of the agreements set forth in this paragraph. 
  

			
	 Equity Trust Company,
 d.b.a. Sterling Trust Custodian
 FBO Richard Hannah Davis, Jr.
IRA

			
		
	By:	 	 /s/ Richard Davis,
Jr.

			
	Name: Richard Davis, Jr.

			
	Title:	 	
	
	Purchaser Shares: 123,636
	
	Consideration: $407,999.00

Signature Page to Subscription Agreement 

 Other Agreements. By signing below and as a condition to the purchase and sale of the
Purchaser Shares, the undersigned Purchaser hereby agrees: (i) that, prior to March 31, 2011, such Purchaser shall not sell or dispose of any equity securities of the Company (or any subsidiary) held by it (whether or not vested),
including, without limitation, any Purchaser Shares or other shares of common stock, options, restricted stock, restricted stock units or any other equity securities (“Restricted Securities”), (ii) that in addition to,
and not in lieu of, the foregoing, such Purchaser shall not sell or dispose of any Restricted Securities beginning from the filing of any registration statement for the offer of any Restricted Securities by the Company (or any subsidiary) through
the earlier of the withdrawal of such registration statement or expiration of any lock-up period executed by such Purchaser, and (iii) that such Purchaser will execute any lock-up or other similar agreement as may be reasonably requested by any
underwriters in respect of a public offering of any Restricted Securities, but in no event shall such agreement be effective for a shorter period than such underwriters may require of Pegasus (or any subsidiary). It is intended that, notwithstanding
anything herein to the contrary, Pegasus is an intended third-party beneficiary of the agreements set forth in this paragraph. 
  

			
	 /s/ Michael Kempner
	 	
	Michael Kempner	 	
		
	Purchaser Shares: 60,606	 	
		
	Consideration: $200,000.00	 	

 Signature Page to Subscription Agreement 

 Other Agreements. By signing below and as a condition to the purchase and sale
of the Purchaser Shares, the undersigned Purchaser hereby agrees: (i) that, prior to March 31, 2011, such Purchaser shall not sell or dispose of any equity securities of the Company (or any subsidiary) held by it (whether or not vested),
including, without limitation, any Purchaser Shares or other shares of common stock, options, restricted stock, restricted stock units or any other equity securities (“Restricted Securities”), (ii) that in
addition to, and not in lieu of, the foregoing, such Purchaser shall not sell or dispose of any Restricted Securities beginning from the filing of any registration statement for the offer of any Restricted Securities by the Company (or any
subsidiary) through the earlier of the withdrawal of such registration statement or expiration of any lock-up period executed by such Purchaser, and (iii) that such Purchaser will execute any lock-up or other similar agreement as may be
reasonably requested by any underwriters in respect of a public offering of any Restricted Securities, but in no event shall such agreement be effective for a shorter period than such underwriters may require of Pegasus (or any subsidiary). It is
intended that, notwithstanding anything herein to the contrary, Pegasus is an intended third-party beneficiary of the agreements set forth in this paragraph. 

 

			
	 /s/ Leon Wagner
	 	
	Leon Wagner	 	
		
	Purchaser Shares: 634,394	 	
		
	Consideration: $2,093,500.50	 	

 Signature Page to Subscription Agreement 

 Other Agreements. By signing below and as a condition to the purchase and sale of the
Purchaser Shares, the undersigned Purchaser hereby agrees: (i) that, prior to March 31, 2011, such Purchaser shall not sell or dispose of any equity securities of the Company (or any subsidiary) held by it (whether or not vested),
including, without limitation, any Purchaser Shares or other shares of common stock, options, restricted stock, restricted stock units or any other equity securities (“Restricted Securities”), (ii) that in addition to,
and not in lieu of, the foregoing, such Purchaser shall not sell or dispose of any Restricted Securities beginning from the filing of any registration statement for the offer of any Restricted Securities by the Company (or any subsidiary) through
the earlier of the withdrawal of such registration statement or expiration of any lock-up period executed by such Purchaser, and (iii) that such Purchaser will execute any lock-up or other similar agreement as may be reasonably requested by any
underwriters in respect of a public offering of any Restricted Securities, but in no event shall such agreement be effective for a shorter period than such underwriters may require of Pegasus (or any subsidiary). It is intended that, notwithstanding
anything herein to the contrary, Pegasus is an intended third-party beneficiary of the agreements set forth in this paragraph. 
  

					
	Leon Wagner 2011 Trust Number 1
			
	By:	 	 /s/ Leon M. Wagner
	 	
	Name:  Leon M. Wagner
	Title:    
	
	Purchaser Shares: 60,000
	
	Consideration: $198,000.00

Signature Page to Subscription Agreement 

 Other Agreements. By signing below and as a condition to the purchase and sale of the
Purchaser Shares, the undersigned Purchaser hereby agrees: (i) that, prior to March 31, 2011, such Purchaser shall not sell or dispose of any equity securities of the Company (or any subsidiary) held by it (whether or not vested),
including, without limitation, any Purchaser Shares or other shares of common stock, options, restricted stock, restricted stock units or any other equity securities (“Restricted Securities”), (ii) that in addition to,
and not in lieu of, the foregoing, such Purchaser shall not sell or dispose of any Restricted Securities beginning from the filing of any registration statement for the offer of any Restricted Securities by the Company (or any subsidiary) through
the earlier of the withdrawal of such registration statement or expiration of any lock-up period executed by such Purchaser, and (iii) that such Purchaser will execute any lock-up or other similar agreement as may be reasonably requested by any
underwriters in respect of a public offering of any Restricted Securities, but in no event shall such agreement be effective for a shorter period than such underwriters may require of Pegasus (or any subsidiary). It is intended that, notwithstanding
anything herein to the contrary, Pegasus is an intended third-party beneficiary of the agreements set forth in this paragraph. 
  

					
	Leon Wagner 2011 Trust Number 2
			
	By:	 	 /s/ Leon M. Wagner
	 	
	Name:  Leon M. Wagner
	Title:    
	
	Purchaser Shares: 45,000
	
	Consideration: $148,500.00

Signature Page to Subscription Agreement 

 Other Agreements. By signing below and as a condition to the purchase and sale of the
Purchaser Shares, the undersigned Purchaser hereby agrees: (i) that, prior to March 31, 2011, such Purchaser shall not sell or dispose of any equity securities of the Company (or any subsidiary) held by it (whether or not vested),
including, without limitation, any Purchaser Shares or other shares of common stock, options, restricted stock, restricted stock units or any other equity securities (“Restricted Securities”), (ii) that in addition to,
and not in lieu of, the foregoing, such Purchaser shall not sell or dispose of any Restricted Securities beginning from the filing of any registration statement for the offer of any Restricted Securities by the Company (or any subsidiary) through
the earlier of the withdrawal of such registration statement or expiration of any lock-up period executed by such Purchaser, and (iii) that such Purchaser will execute any lock-up or other similar agreement as may be reasonably requested by any
underwriters in respect of a public offering of any Restricted Securities, but in no event shall such agreement be effective for a shorter period than such underwriters may require of Pegasus (or any subsidiary). It is intended that, notwithstanding
anything herein to the contrary, Pegasus is an intended third-party beneficiary of the agreements set forth in this paragraph. 
  

					
	Leon Wagner 2011 Trust Number 3
			
	By:	 	 /s/ Leon M. Wagner
	 	
	Name:  Leon M. Wagner
	Title:    
	
	Purchaser Shares: 15,000
	
	Consideration: $49,500.00

Signature Page to Subscription Agreement 

 
			
	 /s/ Stanley Fleishman
	 	
	Stanley Fleishman	 	
		
	Purchaser Shares: 60,606	 	
		
	Consideration: $200,000	 	

 Signature Page to Subscription Agreement 

 
			
	 /s/ Richard Kirschner
	 	
	Richard Kirschner	 	
		
	Purchaser Shares: 60,606	 	
		
	Consideration: $200,000	 	

 Signature Page to Subscription Agreement 

 
			
	 /s/ Steve Arnold
	 	
	Steve Arnold	 	
		
	Purchaser Shares: 50,000	 	
		
	Consideration: $165,000	 	

 Signature Page to Subscription Agreement 

 
			
	 /s/ Zachary Arnold
	 	
	Zachary Arnold	 	
		
	Purchaser Shares: 10,000	 	
		
	Consideration: $33,000	 	

 Signature Page to Subscription Agreement 

 
			
	 /s/ Blossom Arnold
	 	
	Blossom Arnold	 	
		
	Purchaser Shares: 10,000	 	
		
	Consideration: $33,000	 	

 Signature Page to Subscription Agreement 

 
					
	CWC Family, LP
	
	By: Canale Bros., Inc., its General Partner
		
	 /s/ Michael A. Robinson
	 	
	Michael A. Robinson, Senior Vice President
	
	Purchaser Shares: 40,000
	
	Consideration: $132,000.00

Signature Page to Subscription Agreement 

 
			
	 /s/ Andrew Haas
	 	
	Andrew Haas	 	
		
	Purchaser Shares: 20,000	 	
		
	Consideration: $66,000.00	 	

 Signature Page to Subscription Agreement 

 
			
	 /s/ Dan Kilmurray
	 	
	Dan Kilmurray	 	
		
	Purchaser Shares: 20,000	 	
		
	Consideration: $66,000.00	 	

 Signature Page to Subscription Agreement 

 
			
	Kingdon Associates
	
	By: Kingdon Capital Management, L.L.C., its Investment Advisor
		
	By:	 	 /s/ Alan P. Winters

	Name: Alan P. Winters
	Title: Chief Operating Officer
	
	Purchaser Shares: 149,000
	
	Consideration: $491,700.00

Signature Page to Subscription Agreement 

 
			
	Kingdon Family Partnership, L.P.
	
	By: Kingdon Capital Management, L.L.C., its Investment Advisor
		
	By:	 	 /s/ Alan P. Winters

	Name: Alan P. Winters
	Title: Chief Operating Officer
	
	Purchaser Shares: 14,000
	
	Consideration: $46,200.00

Signature Page to Subscription Agreement 

 
			
	M. Kingdon Offshore Master Fund L.P.
	
	By: Kingdon Capital Management, L.L.C., its Investment Advisor
		
	By:	 	 /s/ Alan P. Winters

	Name: Alan P. Winters
	Title: Chief Operating Officer
	
	Purchaser Shares: 237,000
	
	Consideration: $782,100.00

Signature Page to Subscription Agreement 

 
			
	 /s/ Robert Kipperman
	 	
	Robert Kipperman	 	
		
	Purchaser Shares: 30,000	 	
		
	Consideration: $99,000.00	 	

 Signature Page to Subscription Agreement 

 
			
	 /s/ Phil Lifschitz
	 	
	Phil Lifschitz	 	
		
	Purchaser Shares: 40,000	 	
		
	Consideration: $132,000.00	 	

 Signature Page to Subscription Agreement 

 
			
	 /s/ Robert Matza
	 	
	Robert Matza	 	
		
	Purchaser Shares: 70,000	 	
		
	Consideration: $231,000.00	 	

 Signature Page to Subscription Agreement 

 
			
	 /s/ James Richman
	 	
	James Richman	 	
		
	Purchaser Shares: 40,000	 	
		
	Consideration: $132,000.00	 	

 Signature Page to Subscription Agreement 

 
			
	 /s/ Beny Alagem
	 	
	Beny Alagem	 	
		
	Purchaser Shares: 50,000	 	
		
	Consideration: $165,000.00	 	

 Signature Page to Subscription Agreement 

 
			
	Richard Ruben 2001 Family Trust
		
	 /s/ Ross Silver
	 	
	Ross Silver, Trustee	 	
		
	Purchaser Shares: 75,000	 	
		
	Consideration: $247,500.00	 	

 Signature Page to Subscription Agreement 

 
					
	Ensemble 2003 Capital Partners, L.P.
	
	By: Ruben Capital Holdings, LLC, its General Partner
		
	 /s/ Richard Ruben
	 	
	Richard Ruben, Managing Member
	
	Purchaser Shares: 75,000
	
	Consideration: $247,500.00

Signature Page to Subscription Agreement 

 
					
	Ensemble IX Capital Partners, L.P.
	
	By: Ruben Capital Holdings, LLC, its General Partner
		
	 /s/ Richard Ruben
	 	
	Richard Ruben, Managing Member
	
	Purchaser Shares: 75,000
	
	Consideration: $247,500.00

Signature Page to Subscription Agreement 

 
			
	 /s/ Michael A. Robinson
	 	
	Michael A. Robinson	 	
		
	Purchaser Shares: 30,000	 	
		
	Consideration: $99,000.00	 	

 Signature Page to Subscription Agreement 

 
			
	 /s/ Irwin Simon
	 	
	Irwin Simon	 	
		
	Purchaser Shares: 30,000	 	
		
	Consideration: $99,000.00	 	

 Signature Page to Subscription Agreement 

 
			
	 /s/ Robert Stein
	 	
	Robert Stein	 	
		
	Purchaser Shares: 151,000	 	
		
	Consideration: $498,300.00	 	

 Signature Page to Subscription Agreement 

 Other Agreements. By signing below and as a condition to the purchase and sale of the
Purchaser Shares, the undersigned Purchaser hereby agrees: (i) that, prior to March 31, 2011, such Purchaser shall not sell or dispose of any equity securities of the Company (or any subsidiary) held by it (whether or not vested),
including, without limitation, any Purchaser Shares or other shares of common stock, options, restricted stock, restricted stock units or any other equity securities (“Restricted Securities”), (ii) that in addition to,
and not in lieu of, the foregoing, such Purchaser shall not sell or dispose of any Restricted Securities beginning from the filing of any registration statement for the offer of any Restricted Securities by the Company (or any subsidiary) through
the earlier of the withdrawal of such registration statement or expiration of any lock-up period executed by such Purchaser, and (iii) that such Purchaser will execute any lock-up or other similar agreement as may be reasonably requested by any
underwriters in respect of a public offering of any Restricted Securities, but in no event shall such agreement be effective for a shorter period than such underwriters may require of Pegasus (or any subsidiary). It is intended that, notwithstanding
anything herein to the contrary, Pegasus is an intended third-party beneficiary of the agreements set forth in this paragraph. 
  

			
	 /s/ Jeff Scott
	 	
	Jeff Scott	 	
		
	Purchaser Shares: 74,000	 	
		
	Consideration: $244,200.00	 	

 Signature Page to Subscription Agreement 

 
			
	 /s/ Harry Wagner
	 	
	Harry Wagner	 	
		
	Purchaser Shares: 30,000	 	
		
	Consideration: $99,000.00	 	

 Signature Page to Subscription Agreement 

 
			
	 /s/ Hillel Weinberger
	 	
	Hillel Weinberger	 	
		
	Purchaser Shares: 75,000	 	
		
	Consideration: $247,500.00	 	

 Signature Page to Subscription Agreement 

 
			
	 /s/ E. Lee Giovannetti
	 	
	E. Lee Giovannetti	 	
		
	Purchaser Shares: 30,000	 	
		
	Consideration: $99,000.00	 	

 Signature Page to Subscription AgreementLong-Term Incentive Compensation Plan as Amended and Restated January 24, 2011

 Exhibit 10.1 
 ULTRATECH, INC. 
 LONG-TERM INCENTIVE COMPENSATION PLAN 

AS AMENDED AND RESTATED JANUARY 24, 2011 
 ARTICLE I 
 NAME AND PURPOSE 

1.01 Purpose. Ultratech, Inc. a corporation duly organized and existing under the laws of State of Delaware (the
“Corporation”), established the Ultratech, Inc. Long-Term Incentive Compensation Plan (the “Plan”) in order to provide the Corporation’s executive officers and other select key employees with the opportunity to earn
additional incentive compensation contingent upon the Corporation’s attainment of pre-established performance objectives and their completion of designated service periods. This January 2011 amendment and restatement is intended to provide the
Plan Administrator with additional flexibility in structuring payments in the event of a participant’s death or disability or in connection with certain changes in control or ownership of the Corporation. 

1.02 General. The benefits provided under the Plan shall be paid, as they become due, from the Corporation’s general
assets. The interest of each participant (and his or her beneficiary) in any benefits that become payable under the Plan shall be no greater than that of an unsecured creditor of the Corporation. 

ARTICLE II 

ADMINISTRATION OF THE PLAN 
 2.01 Plan Administrator. The Plan shall be administered by the Compensation Committee of the Board, and the Compensation Committee acting in such capacity shall hereinafter be referred to as
the Plan Administrator. As Plan Administrator, the Compensation Committee shall have full power and authority to administer the Plan and select the Eligible Employees who are to participate in the Plan. 

2.02 Authority. The interpretation and construction of any provision of the Plan and the adoption of rules and regulations
for plan administration shall be made by the Plan Administrator. Decisions of the Plan Administrator shall be final and binding on all parties who have an interest in the Plan, including (without limitation) all decisions relating to an
individual’s eligibility for participation in the Plan, his or her entitlement to benefits hereunder and the amount of any such benefit entitlement. The Plan Administrator shall also have the discretionary authority to determine whether the
involuntary termination of any Participant’s Employee status constitutes a Termination for Cause (pursuant to the criteria set forth in Section 3.16), and such determination shall be final and binding on the Participant for purposes of
such Participant’s benefit entitlement (if any) under the Plan. 

 ARTICLE III 
 DEFINITIONS 
 3.01 “Account” shall
mean the account maintained for each Participant on the Corporation’s books and records with respect to the portion of each Long-Term Incentive Bonus requiring an additional period of vesting Service beyond the Performance Year to which that
bonus relates. 
 3.02 “Board” shall mean the Corporation’s Board of Directors. 

3.03 “Change in Control” shall mean a change in ownership or control of the Corporation effected through any of
the following transactions: 
 (i) a merger or consolidation in which the Corporation is not the surviving
entity and in which one person or a group of related persons (other than the Corporation or a person that directly or indirectly controls, is controlled by, or is under common control with, the Corporation) acquires ownership of securities
possessing more than fifty percent (50%) of the total combined voting power of the Corporation’s outstanding securities; 
 (ii) the sale, transfer or other disposition of all or substantially all of the assets of the Corporation in complete liquidation or dissolution of the Corporation; 

(iii) any reverse merger in which the Corporation is the surviving entity but in which one person or a group of related
persons (other than the Corporation or a person that directly or indirectly controls, is controlled by, or is under common control with, the Corporation) acquires ownership of securities possessing more than fifty percent (50%) of the total
combined voting power of the Corporation’s outstanding securities; 
 (iv) the acquisition, directly or
indirectly by any person or related group of persons (other than the Corporation or a person that directly or indirectly controls, is controlled by, or is under common control with, the Corporation), of beneficial ownership (within the meaning of
Rule 13d-3 of the 1934 Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Corporation’s outstanding securities pursuant to a tender or exchange offer made directly to the
Corporation’s stockholders: or 

  
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 (v) a change in the composition of the Board over a period of twelve
(12) consecutive months or less such that a majority of the Board members cease, by reason of one or more contested elections for Board membership, to be comprised of individuals who either (A) have been Board members continuously since
the beginning of such period or (B) have been elected or nominated for election as Board members during such period by at least a majority of the Board members described in clause (A) who were still in office at the time the Board approved
such election or nomination; provided, however, this subparagraph (v) shall only apply as an issuance or distribution event for so long as the Corporation is not a majority-owned subsidiary of another entity. 

The foregoing definition of Change in Control shall in all instances be applied and interpreted in such manner that the applicable Change
in Control transaction also qualifies as: (i) a change in the ownership of the Corporation, as determined in accordance with Section 1.409A-3(i)(5)(v) of the Treasury Regulations, (ii) a change in the effective control of the
Corporation, as determined in accordance with Section 1.409A-3(i)(5)(vi) of the Treasury Regulations, or (iii) a change in the ownership of a substantial portion of the assets of the Corporation, as determined in accordance with
Section 1.409A-3(i)(5)(vii) of the Treasury Regulations. 
 3.04 “Code” shall mean the
Internal Revenue Code of 1986, as amended from time to time. 
 3.05 “Corporation” shall mean
Ultratech, Inc. and any successor or assignee corporation, whether by way of merger, acquisition or other reorganization. 

3.06 “Disability or Disabled” shall mean the Participant’s inability to engage in any substantial
gainful employment by reason of any physical or medical impairment which is expected to result in death or continue for a period of twelve (12) consecutive months or more. 

3.07 “Eligible Employee” shall mean each executive officer of the Corporation and any other key employee
of the Corporation or any Parent or Subsidiary who the Plan Administrator deems essential to the growth and financial success of the Corporation. 
 3.08 “Employee” shall mean any person in the employ of the Corporation or any Parent or Subsidiary, subject to control and direction of the employer entity as to both the
work to be performed and the manner and method of performance. 
 3.09 “Involuntary Termination” shall
mean the termination of Employee status by reason of: 
 (i) the Employee’s discharge or dismissal by the
Corporation or any Parent or Subsidiary for any reason other than a Termination for Cause, or 
 (ii) the
Employee’s death or Disability. 

  
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 3.10 “Long-Term Incentive Bonus” shall mean the bonus to which the
Participant may become entitled with respect to a particular Performance Period on the basis of the Corporation’s attainment of the Performance Milestones which the Plan Administrator establishes for that Performance Period. 

3.11 “1934 Act” shall mean the Securities Exchange of 1934, as amended. 

3.12 “Parent” shall mean any corporation (other than the Corporation) in an unbroken chain of corporations
ending with the Corporation, provided each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain. 
 3.13 “Participant” shall mean each
Eligible Employee who participates in the Plan. 
 3.14 “Performance Milestones” shall mean one or more
specific performance objectives which the Plan Administrator designates for the Corporation to attain in a particular Performance Period in order for each Participant to become entitled to a Long-Term Incentive Bonus for that Performance Period.
Without limiting the generality of the foregoing, Performance Milestones may be based on one or more of the following financial criteria: (1) return on total stockholder equity; (2) earnings per share of Common Stock; (3) net income
or operating income (before or after taxes); (4) earnings before interest, taxes, depreciation and amortization; (5) earnings before interest, taxes, depreciation, amortization and charges for stock-based compensation, (6) sales or
revenue targets; (7) return on assets, capital or investment; (8) cash flow; (9) market share; (10) cost reduction goals; (11) budget comparisons and (12) measures of customer satisfaction. In addition, such Performance
Milestones may be tied to the attainment of specified levels of the Corporation’s performance under one or more of the financial criteria described above relative to the performance of other entities and may also be based on the performance of
any of the Corporation’s business units or divisions or any Parent or Subsidiary. 
 3.15 “Performance
Period” shall mean the period coincidental with each fiscal year of the Corporation over which the Corporation must attain the Performance Milestones which the Plan Administrator has established for that period. 

3.16 “Qualifying Change in Control” shall mean a Change in Control transaction that also qualifies as:
(i) a change in the ownership of the Corporation, as determined in accordance with Section 1.409A-3(i)((5)(v) of the Treasury Regulations, (ii) a change in the effective control of the Corporation, as determined in accordance with
Section 1.409A-3(i)((5)(vi) of the Treasury Regulations, or (iii) a change in the ownership of a substantial portion of the assets of the Corporation, as determined in accordance with Section 1.409A-3(i)((5)(vii) of the Treasury
Regulations. 

  
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 3.17 “Separation from Service” shall mean the Participant’s
cessation of Employee status by reason of his or her death, retirement or termination of employment. The Participant shall be deemed to have terminated employment for such purpose at such time as the level of his or her bona fide services to be
performed as an Employee (or as a consultant or independent contractor) permanently decreases to a level that is not more than twenty percent (20%) of the average level of services he or she rendered as an Employee during the immediately
preceding thirty-six (36) months (or such shorter period for which he or she may have rendered such services). Solely for purposes of determining when a Separation from Service occurs, Participant will be deemed to continue in
“Employee” status for so long as he or she remains in the employ of one or more members of the Employer Group, subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of
performance. “Employer Group” means the Corporation and any Parent or Subsidiary and any other corporation or business controlled by, controlling or under common control with, the Corporation, as determined in accordance with Sections
414(b) and (c) of the Code and the Treasury Regulations thereunder, except that in applying Sections 1563(1), (2) and (3) of the Code for purposes of determining the controlled group of corporations under Section 414(b), the
phrase “at least 50 percent” shall be used instead of “at least 80 percent” each place the latter phrase appears in such sections and in applying Section 1.414(c)-2 of the Treasury Regulations for purposes of determining
trades or businesses that are under common control for purposes of Section 414(c), the phrase “at least 50 percent” shall be used instead of “at least 80 percent” each place the latter phrase appears in Section 1.4.14(c)-2
of the Treasury Regulations. Any such determination as to Separation from Service, however, shall be made in accordance with the applicable standards of the Treasury Regulations issued under Section 409A of the Code. 

3.18 “Service” shall mean Participant’s performance of services for the Corporation (or any Parent or
Subsidiary) in the capacity of an Employee, a non-employee member of the board of directors or a consultant or independent advisor. For purposes of this Agreement, Participant shall be deemed to cease Service immediately upon the occurrence of the
either of the following events: (i) Participant no longer performs services in any of the foregoing capacities for the Corporation (or any Parent or Subsidiary) or (ii) the entity for which Participant performs such services ceases to
remain a Parent or Subsidiary of the Corporation, even though Participant may subsequently continue to perform services for that entity. Service as an Employee shall not be deemed to cease during a period of military leave, sick leave or other
personal leave approved by the Corporation; provided, however, that the following special provisions shall be in effect for any such leave: 
 (i) Should the period of such leave (other than a disability leave) exceed six (6) months, then Participant shall be deemed to cease Service and to incur a Separation from Service upon the expiration
of the initial six (6)-month period of that leave, unless Participant retains a right to re-employment under applicable law or by contract with the Corporation (or any Parent or Subsidiary). 

  
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 (ii) Should the period of a disability leave exceed twenty-nine
(29) months, then Participant shall be deemed to cease Service and to incur a Separation from Service upon the expiration of the initial twenty-nine (29)-month period of that leave, unless Participant retains a right to re-employment under
applicable law or by contract with the Corporation (or any Parent or Subsidiary). For such purpose, a disability leave shall be a leave of absence due to any medically determinable physical or mental impairment that can be expected to result in
death or to last for a continuous period of not less than six (6) months and causes Participant to be unable to perform the duties of his or her position of employment with the Corporation (or any Parent or Subsidiary) or any substantially
similar position of employment. 
 (iii) Except to the extent otherwise required by law or expressly authorized
by the Plan Administrator or by the Corporation’s written policy on leaves of absence, no Service credit shall be given for vesting purposes for any period Participant is on a leave of absence. 

3.19 “Subsidiary” shall mean any corporation (other than the Corporation) in an unbroken chain of
corporations beginning with the Corporation, provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting
power of all classes of stock in one of the other corporations in such chain. 
 3.20 “Termination for
Cause” shall mean shall mean the termination of the Participant’s Service by the Corporation (or any Parent or Subsidiary) for one or more of the following reasons: 

(i) the Participant’s repeated failure to perform the essential duties and responsibilities of his or her position
with the Corporation (or any Parent or Subsidiary) other than by reason of his or her Disability; 
 (ii) the
Participant’s commission of any act that constitutes gross misconduct and is injurious to the Corporation or any Parent or Subsidiary; 
 (iii) the Participant’s conviction of or pleading guilty or nolo contendere to any felony involving theft, embezzlement, dishonesty or moral turpitude; 

(iv) the Participant’s commission of any act of fraud against, or the misappropriation of property belonging to, the
Corporation or any Parent or Subsidiary; 
 (v) the Participant’s commission of any act of dishonesty in
connection with his or her duties and responsibilities as an employee of the Corporation (or any Parent or Subsidiary) that is intended to result in his or her personal enrichment or the personal enrichment of his or her family or others; or

  
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 (vi) the Participant’s material breach of any employment agreement he
or she may have at the time with the Corporation or any other agreement between the Participant and the Corporation or any Parent or Subsidiary. 
 ARTICLE IV 
 PARTICIPATION 

4.01 Eligibility Rules. The Plan Administrator shall have absolute discretion in selecting the Eligible Employees
who are to participate in each Performance Period implemented under the Plan. The initial Participants for each Performance Period shall be selected not later than the ninetieth (90th) day after the commencement date of that Performance Period.
The Plan Administrator may select additional Participants for the Performance Period after such ninetieth (90th) day; provided, however, that the Plan Administrator may, in its sole discretion, pro-rate the Long-Term Incentive
Bonus which the Participant may earn for that Performance Period to reflect his or her actual period of Service during that Performance Period. 
 4.02 Cessation of Participation. The Plan Administrator shall have complete discretion to exclude one or more individuals from Participant status for one or more subsequent
Performance Periods implemented under the Plan. If any individual is excluded from Participant status for one or more Performance Periods, then such individual shall not be entitled to any Long-Term Incentive Bonus for those Performance Periods.
However, such individual shall continue to vest, during his or her period of continued Service, in any unvested Long-Term Incentive Bonuses credited to his or her Account. 
 ARTICLE V 
 LONG-TERM INCENTIVE BONUSES 

5.01 Timing and Nature of Awards. The Plan Administrator shall have complete discretion to implement one or more
Performance Periods under the Plan. The Plan Administrator shall, within the first ninety (90) days of each Performance Period, establish the specific Performance Milestones which must be attained for that Performance Period. For each
Performance Milestone, the Plan Administrator may set threshold, target and above-target levels of attainment. The Plan Administrator shall then establish for each Participant varying dollar levels for the Long-Term Incentive Bonus to which he or
she may become entitled for that Performance Period based on the level at which each Performance Milestone is actually attained. Such varying dollar levels may be tied to a percentage or multiple of the annual rate of base salary in effect for the
Participant for the applicable Performance Period. 

  
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 5.02 Service Requirement. Except as otherwise provided in Section 5.05, a
Participant shall not become entitled to a Long-Term Incentive Bonus for a particular Performance Period unless the Participant continues in Service through the completion of that Performance Period or the Participant ceases Service in that
Performance Period by reason of Involuntary Termination (other than Termination for Cause) on or after attainment of age sixty five (65). Should the Participant cease Service for any other reason prior the completion of the Performance Period, then
such individual shall not be entitled to any Long-Term Incentive Bonus for that Performance Period, except as otherwise provided in Section 5.05. 
 5.03 Determination of Bonus Amount. Within the first seventy-five (75) days following the completion of the Performance Period, the Plan Administrator shall, on the basis of the
Corporation’s audited financial statements for the fiscal year coincident with that Performance Period, determine the actual level of attainment of each Performance Milestone established for that Performance Period and shall then measure and
certify that level of attainment against the Minimum, Tier I, Tier II and Tier III levels of attainment established for that Performance Milestone. To the extent the actual level of attainment for any Performance Milestone is at a point between two
of the levels established by the Plan Administrator, the dollar amount of the portion of each Long-Term Incentive Bonus tied to that Performance Milestone shall be pro-rated between the two points on a straight-line basis. On the basis of the
foregoing measurements and certification, the Plan Administrator shall determine the actual Long-Term Incentive Bonus for each Participant entitled to a Long-Term Incentive Bonus for the Performance Period, subject to the pro-rated bonus provisions
of Section 5.05 for certain Participants who cease Service prior to the completion of that Performance Period. In no event, however, shall any Long-Term Incentive Bonus be earned with respect to a particular Performance Milestone if the actual
level of attainment of that Performance Milestone is below the Minimum level set for that milestone. 
 5.04 Change in
Control. Should a Change in Control transaction be consummated after the first ninety (90) days of the Performance Period but prior to the completion of that Performance Period, then the Performance Period shall terminate upon the
consummation of that Change in Control. In such event, the actual Long-Term Incentive Bonus for each Participant entitled under Section 5.02 to a bonus for that Performance Period shall be in the dollar amount previously set by the Plan
Administrator at Tier III level attainment of each Performance Milestone, subject to the pro-rated bonus provisions of Section 5.05 for certain Participants who ceased Service prior to the completion of that abbreviated Performance Period.
Should the Change in Control transaction occur within the first ninety (90) days of the Performance Period, the Plan Administrator shall have complete discretion whether and to what extent any bonuses should be paid under the Plan for that
limited Performance Period. 

  
 8 

 5.05 Pro-Rated Bonus. The provisions of Sections 5.03 and 5.04 governing the
determination of the actual Long-Term Incentive Bonus for each Participant entitled under Section 5.02 to such bonus shall be modified in accordance with the provisions of this Section 5.05 should the Participant cease Service prior to the
completion of the applicable Performance Period by reason of an Involuntary Termination (other than a Termination for Cause) prior to attainment of age sixty-five (65). Such Participant shall only be entitled to a pro-rated Long-Term Incentive Bonus
in a dollar amount determined by multiplying the actual Long-Term Incentive Bonus to which he or she would have been entitled under Section 5.03 or Section 5.04 (as the case may be), on the basis of the attained level of performance for
the Performance Period (or Tier III level attainment in the event of a Change in Control occurring more than ninety (90) days after the start of the applicable Performance Period), had he or she continued in Service through the last day of that
Performance Period first by (i) the percentage of that Long-Term Incentive Bonus which is not subject to the Service vesting and deferred payment provisions of Section 6.01 and then by (ii) a fraction, the numerator of
which is the number of months such Participant remained in Service during the Performance Period (rounded up to the next whole month) and the denominator of which is the total number of months in that Performance Period. The Long-Term Incentive
Bonus with respect to a Participant who ceases Service during a Performance Period by reason of an Involuntary Termination (other than a Termination for Cause) at or after the attainment of age sixty-five (65) shall not be subject to pro-ration
pursuant to the clause (ii) fraction in the preceding sentence and shall be calculated in accordance with Section 5.03 as if the Participant had continued in Service through the completion of that Performance Period; provided,
however, that such Participant shall not be entitled to the Deferred Portion of such bonus (as calculated under Article VI), unless he or she continues in Service through the completion of the applicable Performance Period. 

5.06 Vesting and Payment. The actual Long-Term Incentive Bonus to which each Participant becomes entitled pursuant to the
foregoing provisions of this Article V shall be subject to the vesting and payment provisions of Article VI, and no Long-Term Incentive Bonus shall be paid to a Participant until the vesting and payment requirements of Article VI are satisfied.

 ARTICLE VI 
 VESTING AND PAYMENT OF LONG-TERM INCENTIVE BONUSES 
 6.01
Vesting. The Plan Administrator may, in its sole discretion at the time the Performance Milestones for the Performance Period are established, impose an additional Service vesting requirement with respect to all or any portion of the
Long-Term Incentive Bonus to which each Participant becomes entitled for that Performance Period. Such portion shall be hereinafter referred to as the Deferred Portion and shall be subject to the following provisions: 

(i) The Deferred Portion shall be credited to each Participant’s Account as of the date the remaining portion of his
or her Long-Term Incentive Bonus is paid in accordance with Section 6.02. 
 (ii) The Deferred Portion shall
vest in a series of successive equal annual installments upon the Participant’s completion of each additional year of Service over the period of years (not to exceed five (5) years) designated by the Plan Administrator and measured from
the first day of the Corporation’s fiscal year immediately following the Performance Period to which that Deferred Portion relates. 

  
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 (iii) The Deferred Portion shall vest in full on an accelerated basis upon
the Participant’s continuation in Service through the consummation of a Change in Control or any earlier cessation of the Participant’s Service by reason of an Involuntary Termination (other than a Termination for Cause) on or after
attainment of age sixty-five (65), provided that in each instance the Participant continues in Service at least through the end of the Performance Period to which that Deferred Portion relates. 

(iv) Should the Participant cease Service, during one of the twelve (12)-month periods within the annual installment
period over which the Deferred Portion is to vest, by reason of an Involuntary Termination (other than a Termination for Cause) prior to the attainment of age sixty-five (65), then such Participant shall vest on an accelerated basis in a pro-rated
portion of the Deferred Portion determined first by dividing the total dollar amount of the Deferred Portion by the number of annual installments comprising the vesting period for that Deferred Portion and then dividing the dollar amount so obtained
by a fraction, the numerator of which is the number of months of Service rendered by the Participant in the twelve (12)-month period in which such cessation of Service occurs (rounded up to the next whole month, and the denominator of which is
twelve (12), provided that in each instance the Participant continues in Service at least through the end of the Performance Period to which that Deferred Portion relates. 

(v) During the period the Deferred Portion is credited to the Participant’s Account, that portion shall earn
interest, compounded annually, at the per annum rate determined from time to time by the Plan Administrator. In the absence of any such determination by the Plan Administrator, the per annum rate shall be the prime rate in effect from time to time,
as such rate is quoted in The Wall Street Journal. 
 (vi) As the Deferred Portion vests in one or
more installments, whether in accordance with the established vesting schedule for that portion or pursuant to the applicable vesting acceleration provisions of the Plan, each such vested installment (or pro-rated portion thereof) will be paid to
the Participant (or his or her estate) on the fifteenth (15th) day following such vesting date or as soon after that vesting date as administratively practicable, but in no event later than the later of the close of the calendar
year in which that vesting date occurs or the fifteenth (15th) day of the third calendar month following such vesting date. 

  
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 6.02 Current Payment. The portion of the Participant’s Long-Term
Incentive Bonus which is not subject to the vesting and deferred payment provisions of Section 6.01 shall be paid to the Participant in accordance with the following requirements: 

(i) for a full Performance Period coincidental with the Corporation’s fiscal year, the payment shall be made during
the period beginning on the first business day of the succeeding fiscal year and ending on the fifteenth (15th) day of the third calendar month in that succeeding fiscal year or such later date as may be required for administrative purposes,
but not later than the last day of that succeeding fiscal year. 
 (ii) for an abbreviated Performance Period
under Section 5.04, the payment shall be made within sixty (60) days after the effective date of the Change in Control transaction triggering that abbreviated Performance Period, provided such Change in Control constitutes a Qualifying
Change in Control. Otherwise, the payment shall be made in accordance with Section 6.02(i) above, as if there had been a full Performance Period. 
 6.03 Withholding Taxes. The Corporation shall collect all federal, state and local income, employment and other payroll taxes (including FICA taxes) required to be withheld from the
Participant’s Long-Term Incentive Bonus, as and when those taxes become due under applicable law. The Corporation shall collect such taxes through tax withholdings from the Long-Term Incentive Bonus or other wages and earnings payable to the
Participant or by any other means acceptable to the Corporation. 
 ARTICLE VII 

SPECIAL PROVISIONS 
 7.01 Special Provisions for Select Participants. Unless the Plan Administrator specifically determines otherwise for one or more Long-Term Incentive Bonuses, the terms and provisions of the
Plan, including (without limitation) the eligibility and participation provisions of Sections 4.01 and 4.02, the pro-ration provisions of Sections 5.02 and 5.05 applicable to Participants who cease Service prior to the completion of the applicable
Performance Period and the vesting provisions of Section 6.01 shall each be subject to modification and revision to the extent the Participant is at the time a party to a written employment agreement with the Corporation (the “Employment
Agreement”) which provides more favorable terms and provisions governing his or her bonus entitlement and/or the vesting of such bonus, and those more favorable terms and provisions shall supersede any terms and provisions to the contrary set
forth in the Plan, including (without limitation) the specific sections indicated above. Appendix I to the Plan sets forth the Participants who are currently parties to Employment Agreements and the provisions of their Employment Agreements which
shall supersede provisions to the contrary in the Plan. 

  
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 ARTICLE VIII 
 MISCELLANEOUS 
 8.01 Plan Effective Date. The Plan
shall become effective immediately upon approval by the Compensation Committee of the Board, and the Plan Administrator may, upon such approval, implement the Plan for the Performance Period coincidental with the Corporation’s 2006 fiscal year.
However, the January 2011 amendment and restatement of the Plan shall apply only to Long-Term Incentive Bonus awards made under the Plan on or after January 1, 2011. 
 8.02 Deferred Commencement Date. Notwithstanding any provision to the contrary in the Plan, no distribution which becomes due and payable by reason of the Participant’s
Separation from Service status shall be made to a Participant prior to the earlier of (i) the first day of the seventh (7th) month following the date of such Separation from Service or (ii) the date of Participant’s
death, if Participant is deemed at the time of such Separation from Service to be a specified employee under Section 1.409A-1(i) of the Treasury Regulations issued under Code Section 409A, as determined by the Plan Administrator in
accordance with consistent and uniform standards applied to all other Code Section 409A arrangements of the Corporation, and such delayed commencement is otherwise required in order to avoid a prohibited distribution under Code
Section 409A(a)(2). All payments deferred by reason of this Section 8.02 shall be paid in a lump sum on the first day of the seventh (7th) month following the date of Participant’s Separation from Service or, if earlier, the
first day of the month immediately following the date the Corporation receives proof of Participant’s death. 
 8.03
Benefit Limit. In the event any payment to which Participant becomes entitled under the Plan would otherwise constitute a parachute payment under Code Section 280G, then that payment shall, except as otherwise
provided in attached Schedule I, be subject to reduction to the extent necessary to assure that such payment will be limited to the greater of (i) the dollar amount which can be paid to the Participant without triggering a
parachute payment under Code Section 280G or (ii) the dollar amount of that payment which provides the Participant with the greatest after-tax amount after taking into account any excise tax the Participant may incur under Code
Section 4999 with respect to such payment and any other benefits or payments to which the Participant may be entitled in connection with any change in control or ownership of the Corporation or the subsequent termination of the
Participant’s Service. 
 8.04 Benefits Not Funded. The obligation to pay each Participant’s
Long-Term Incentive Bonus, including (without limitation) the portion credited to his or her Account hereunder, shall at all times be an unfunded and unsecured obligation of the Corporation. The Corporation shall not have any obligation to establish
any trust, escrow arrangement or other fiduciary relationship for the purpose of segregating funds for the payment of the Long-Term Incentives Bonuses which become payable under the Plan, nor shall the Corporation be under any obligation to invest
any portion of its general assets in mutual funds, stocks, bonds, securities or other similar investments in order to accumulate funds for the satisfaction of its respective obligations under the Plan. The Participant (or his or her beneficiary)
shall look solely and exclusively to the general assets of the Corporation for the payment of his or her Long-Term Incentive Bonus, including (without limitation) the portion credited to his or her Account hereunder. 

  
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 8.05 No Employment Right. Neither the action of the Corporation in
establishing or maintaining the Plan, nor any action taken under the Plan by the Plan Administrator, nor any provision of the Plan itself shall be construed so as to grant any person the right to remain in the Service of the Corporation for any
period of specific duration, and the Participant shall at all times remain an Employee at will and may accordingly be discharged at any time, with or without cause and with or without advance notice of such discharge. 

8.06 Amendment/Termination. The Compensation Committee of the Board may at any time amend the provisions of the Plan
to any extent and in any manner the Compensation Committee shall deem advisable, and such amendment shall become effective at the time of such Compensation Committee action, subject to any stockholder approval requirements under Code
Section 162(m), to the extent the Plan is intended to comply with such Code section, or any other applicable law or regulation or the listing regulations of any securities exchange on which the Corporation’s common stock is at the time
traded. The Compensation Committee of the Board may also at any time terminate the Plan in whole or in part. However, no such plan amendment or plan termination authorized by the Compensation Committee shall adversely affect the benefits of
Participants accrued to date under the Plan or otherwise reduce the then outstanding balances credited to their Accounts or otherwise adversely affect the vesting provisions in effect for those Accounts or modify the distribution provisions in
effect for those Accounts in contravention of the applicable limitations and restrictions of Code Section 409A governing the acceleration or subsequent deferral of distributions and payments hereunder. 

8.07 Applicable Law. The provisions of the Plan shall also be construed, administered and governed by the laws of
the State of California without resort to its conflict-of-laws provisions. If any provision of this Plan shall be held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions of the Plan shall continue in full
force and effect. 
 8.08 Satisfaction of Claims. Any payment made to a Participant or his or her legal
representative, beneficiary or estate in accordance with the terms of this Plan shall to the extent thereof be in full satisfaction of all claims with respect to that payment which such person may have against the Plan, the Plan Administrator (or
its designate) or the Corporation (or any Parent or Subsidiary), any of whom may require the Participant or his or her legal representative, beneficiary or estate, as a condition precedent to such payment, to execute a receipt and release in such
form as shall be determined by the Plan Administrator. 

  
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 8.09 Alienation of Benefits. No person entitled to benefits under the
Plan shall have any right to transfer, assign, alienate, pledge, hypothecate or otherwise encumber his or her interest in such benefits prior to actual receipt of those benefits. The benefits payable under the Plan shall not, prior to actual
payment, be subject to seizure or sequestration for the payment of any debts, judgments, alimony or separate maintenance owed by a Participant or any other person and shall not, to the maximum extent permitted by law, be transferable by operation of
law in the event of the bankruptcy or insolvency of the Participant or any other person. 
 8.10 Successors and
Assigns. The obligation of the Corporation to make the payments required hereunder shall be binding upon the successors and assigns of the Corporation, whether by merger, consolidation, acquisition or other reorganization. 

8.11 Construction and Interpretation. The Plan is intended to comply either with the applicable requirements of Internal
Revenue Code Section 409A (“Section 409A”) and the Treasury Regulations thereunder or, to the maximum extent allowable, with the “short-term deferral exception” to Section 409A. To the extent any payment under the Plan
would qualify for such short-term deferral exception, the provisions of the Plan applicable to that payment shall be applied, construed and administered so that such payment qualifies for such exemption, to the maximum extent allowable. To the
extent any payment under the Plan is deemed to be an item of deferred compensation subject to the requirements of Code Section 409A, the provisions of the Plan applicable to such payment shall be applied, construed and administered so that such
payment is made in compliance with the applicable requirements of Code Section 409A. In addition, should there arise any ambiguity as to whether any other provisions of the Plan would contravene one or more requirements or limitations of Code
Section 409A and the Treasury Regulations thereunder, such provisions shall be interpreted, administered and applied in a manner that complies with the applicable requirements of Code Section 409A and the Treasury Regulations thereunder.

  
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 APPENDIX I 
 AS REVISED EFFECTIVE JANUARY 24, 2011 
 PARTICIPANTS COVERED BY
SECTION 7.01 
 The following participants have current Employment Agreements with the Corporation that provide more
favorable bonus entitlement and vesting provisions than those set forth in the Plan: 
 Art Zafiropoulo – Employment
Agreement dated October 14, 2008 
 Bruce Wright – Employment Agreement dated October 14, 2008 

Accordingly, the provisions governing the Long-Term Incentive Bonus for each of those individuals are hereby modified in the following
respects: 
 1. The definition of Disability or Disabled in Section 3.06 of the Plan is hereby
replaced with the definition of Disability or Disabled in Section 5.1 of the applicable Employment Agreement. 
 2. The
definition of Involuntary Termination in Section 3.09 of the Plan is hereby modified by the addition of the following new sentence at the end of such Section: 

“An Involuntary Termination for purposes of the Plan shall also include the Employee’s termination of Employee status for Good
Reason, as that term is defined in Section 7.2.1 of the applicable Employment Agreement.” 
 3. Accordingly, by reason
of the foregoing modification to the definition of Involuntary Termination, the following additional provisions relating to a Good Reason termination shall be in effect for determining the Long-Term Incentive Bonuses to which the foregoing
participants may become entitled under the Plan: 
 - Should any such participant terminate Employee status during the
Performance Period for Good Reason (as defined above) prior to attainment of age sixty-five (65), then that participant shall be entitled to receive an amount determined by multiplying (i) the non-Deferred Portion of the Long-Term Incentive
Bonus to which he would have become entitled had he continued in Employee status until the end of that Performance Period, with the actual amount of that non-deferred portion to be determined on the basis of the Corporation’s attainment of the
applicable Performance Milestones for that Performance Period, by (ii) a fraction the numerator of which is the number of days such participant remained in Service during the Performance Period and the denominator of which is the total number
of days in that Performance Period. The payment date for such pro-rated amount shall be determined in accordance with Section 6.02. 

  
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 - Should any such participant terminate Employee status during the Performance Period for
Good Reason (as defined above) at or after attainment of age sixty-five (65), then that participant shall be entitled to receive the non-Deferred Portion of the Long-Term Incentive Bonus to which he would have become entitled had he continued in
Employee status until the end of that Performance Period, with the actual amount of that non-deferred portion to be determined on the basis of the Corporation’s attainment of the applicable Performance Milestones for that Performance Period.
The payment date for such amount shall be determined in accordance with Section 6.02 
 - Should any such participant
terminate Employee status for Good Reason (as defined above) at any time after the completion of the Performance Period for a particular Long-Term Incentive Bonus but before completion of the Service vesting requirement in effect for the Deferred
Portion of that bonus, then he shall immediately vest in the entire unpaid balance of that Deferred Portion, provided such participant Employee satisfies the release requirements set forth in Section 6.2.2 of his applicable Employment
Agreement. In such event, the balance of the Deferred Portion that vests on such an accelerated basis shall be paid to such participant within the sixty (60)-day period following his Separation from Service; provided, however, that should such sixty
(60)-day period span two taxable years, the payment shall be made during the portion of that sixty (60)-day period that occurs in the second taxable year. However, if the payment is triggered by the participant’s Separation from Service, then
the deferred payment provisions of Section 8.02 shall be applicable. 
 4. The definition of Termination for Cause
in Section 3.16 of the Plan is hereby replaced with the definition of Termination for Cause in Section 6.1.1 of the applicable Employment Agreement. 
 5. The pro-ration provisions of Section 6.01(iv) of the Plan are hereby superseded by Sections 3.2.2, 5.2, 6.2.2 and 7.2.2 of the applicable Employment Agreement, subject to compliance with any
applicable general release requirements of those sections. 
 6. The benefit limitation of Section 8.03 of the Plan shall
not be in effect for Mr. Zafiropoulo with respect to any payments which are made to him under the Plan while his Employment Agreement remains in force, and he will accordingly be entitled to the tax gross-up payment provided under
Section 8.3 of his Employment Agreement to the extent any payment made to him under the Plan while his Employment Agreement remains in force is deemed to constitute a parachute payment under Code Section 280G. 

  
 16

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