Document:

Termination and Consulting Agreement, dated as of June 19, 2006

 Exhibit 10.2 
 TERMINATION AND CONSULTING AGREEMENT 
 This Termination and Consulting Agreement (this
“Agreement”) is entered into as of this 18th day of June 2006 (the “Agreement Date”) by and between Alberto-Culver Company, a Delaware corporation (the “Company”), Sally Holdings, Inc., a Delaware corporation
(“SHI”), and Michael H. Renzulli (the “Executive”). 
 WHEREAS, the Company and the Executive have entered into the
Severance Agreement dated as of December 1, 1996, as amended as of May 28, 1999 (the “Severance Agreement”), pursuant to which the Executive would be entitled to payments and benefits in the event that the Executive’s
employment were terminated under the circumstances set forth in the Severance Agreement following, among other things, the approval by the stockholders of the Company of a transaction that constitutes a Change in Control (as defined in the Severance
Agreement); 
 WHEREAS, the Company and CDRS Acquisition LLC (the “Investor”) an affiliate of Clayton, Dubilier and Rice, Inc., a
Delaware corporation (“CD&R”), may enter into a transaction whereby, among other things, (i) the Investor will acquire approximately 47.5% of the common stock (the “Equity Investment”) of an entity (“New
Sally”) that will own the Sally/BSG business of the Company, and (ii) the Consumer Products and Sally/BSG businesses of the Company will be split into two, separate publicly traded companies (the “Separation” and, together with
the Equity Investment and the other transactions contemplated thereby, the “Transaction”); 
 WHEREAS, the Company will treat the
Transaction as though it constitutes a Change in Control for the purposes of, and as such term is defined under, the Employee Stock Option Plan of 2003, Employee Stock Option Plan of 1988, 2003 Restricted Stock Plan and 1994 Restricted Stock Plan
and accordingly accelerate the vesting of all options to purchase, and restricted shares of, common stock of the Company issued under such plans, including those held by the Executive; 
 WHEREAS, in respect of the Company’s Management Incentive Plan (the “MIP”) and the 1994 Shareholder Value Incentive Plan
(“SVIP”), the Company will treat the Transaction as though it constitutes a Change in Control (as such term is defined therein) for the participants in such plans, including the Executive; and 
 WHEREAS, the Company and the Executive desire to enter into this Agreement pursuant to which the Severance Agreement shall be terminated, and the
Executive’s employment shall terminate, upon the terms and subject to the conditions contained herein. 
 NOW, THEREFORE, in
consideration of the premises and mutual covenants and agreements contained herein, the Company and the Executive hereby agree as follows: 
 1. Termination of Severance Agreement. The Company and the Executive agree that at the effective time of the Separation (the “Effective Time”), the Executive will cease to be an employee or director of the Company, SHI or
any of their respective subsidiaries or affiliates. In order to resolve all issues that could arise with respect to the Severance Agreement by reason of the Transaction and the Executive’s termination of employment, the Executive, on

 behalf of the Executive and any person claiming through the Executive, and the Company hereby (a) agree that the
Transaction, however effected, including any actions taken in respect thereof or in connection therewith, shall not be deemed to constitute a Change in Control for purposes of the Severance Agreement and (b) terminate effective immediately
prior to the Effective Time the Severance Agreement and any and all rights the Executive may have to any payments or benefits pursuant to the Severance Agreement. 
 2. Consideration. 
 In consideration for the Executive’s entering into this Agreement, the
Company, SHI and the Executive agree that upon the termination of the Executive’s employment by the Company, as agreed to in Section 1, at the Effective Time, the Executive shall become entitled to the payments and benefits set forth in
Schedule I hereto, subject to any conditions (including the execution of a release) identified on Schedule I. 
 If the Executive shall be
entitled to any payments or benefits pursuant to the Severance Agreement in connection with a Change in Control unrelated to the Transaction, then the Executive shall not be entitled to any payments or benefits hereunder. 
 3. Position at Company. While employed by the Company in the period between the Agreement Date and the Effective Time, the Executive
(i) shall continue to serve as the Chairman of the Board of Sally Beauty, Inc. and shall have all customary powers and duties associated with such office, consistent with prior practice and (ii) shall be eligible for and receive
compensation, benefits and perquisites in the ordinary course in a manner consistent with past practice during such period when the Executive has served as Chairman of the Board of Sally Beauty, Inc. provided that the Executive shall not receive any
additional option or other equity grants from the Company at any time after the Agreement Date. 
 4. Limitations on Payments to the
Executive. Solely for the purposes of the computation of benefits under this Agreement and notwithstanding any other provisions hereof, payments to the Executive under this Agreement shall be reduced (but not below zero) so that the present
value, as determined in accordance with Section 280G(d)(4) of the Internal Revenue Code of 1986, as amended (the “Code”), of such payments plus any other payments that must be taken into account for purposes of any computation
relating to the Executive under Section 280G(b)(2)(A)(ii) of the Code, shall not, in the aggregate, exceed 2.99 times the Executive’s “base amount,” as such term is defined in Section 280G(b)(3) of the Code. Notwithstanding
any other provision hereof, no reduction in payments under the limitation contained in the immediately preceding sentence shall be applied to payments hereunder which do not constitute “excess parachute payments” within the meaning of the
Code. Any payments in excess of the limitation of this Section 4 or otherwise determined to be “excess parachute payments” made to the Executive hereunder shall be deemed to be overpayments which shall constitute an amount owing from
the Executive to the Company with interest from the date of receipt by the Executive to the date of repayment (or offset) at the applicable federal rate under Section 1274(d) of the Code, compounded semi-annually, which shall be payable upon
demand; provided, however, that no repayment shall be required under this sentence if in the written opinion of tax counsel satisfactory to the Executive and delivered to the Executive and the Company such repayment does not allow such overpayment
to be excluded for federal income and excise tax purposes from the Executive’s income for the year of receipt or afford the Executive a compensating federal income tax deduction for the year of repayment. 
  

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 5. Agreement Date; Termination of Agreement. This Agreement shall be effective on the Agreement
Date. This Agreement shall terminate and be of no further force or effect if and only if (a) the principal agreements related to the Transaction are not signed by the Company and an affiliate of CD&R on or prior to October 31, 2006, or
(b) such principal agreements are terminated prior to the consummation of the Transaction. 
 6. Withholding Taxes. The Company
may withhold from all payments due to the Executive (or the Executive’s estate or beneficiaries) hereunder all taxes which, by applicable federal, state, local or other law, are required to be withheld therefrom. 
 7. Scope of Agreement. Nothing in this Agreement shall be deemed to entitle the Executive to continued employment with the Company or SHI after
the Effective Time. 
 8. Successors. This Agreement shall inure to the benefit of and be enforceable by, and binding upon, the
Company and its respective successors and assigns, and by the Executive and the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If the Executive shall die while
any amounts would be payable to the Executive hereunder had the Executive continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to such person or persons appointed in
writing by the Executive to receive such amounts or, if no person is so appointed, to the Executive’s estate. 
 9. Notices. All
notices and other communications given in connection with this Agreement shall be in writing and shall be duly given upon receipt when delivered by United States mail, certified and return receipt requested, postage prepaid, addressed (i) if to
the Executive, to the Executive’s most recent address as it appears in the records of the Company, with a copy to Michael Nemeroff, Esq. of Vedder Price, 222 North LaSalle Street, Chicago, Illinois 60601, Facsimile: 312/609-5005, if to the
Company, to Alberto-Culver Company, 2525 Armitage Avenue, Melrose Park, Illinois, 60160, attention of the General Counsel and if to SHI, to Sally Holdings, Inc., 3001 Colorado Boulevard, Denton, TX 76210, attention of the General Counsel, or
(ii) to such other address as any party may have furnished to the other parties in writing in accordance herewith. 
 10. Governing
Law; Validity. The interpretation, construction and performance of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Illinois without regard to the principle of conflicts of laws.
The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which other provisions shall remain in full force and effect. 
 11. Counterparts. This Agreement may be executed in two counterparts, each of which shall be deemed to be an original and which together shall
constitute one and the same instrument. Signatures delivered by facsimile shall be considered for all purposes under this Agreement to be original signatures. 
  

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 12. Application of Section 409A. Notwithstanding the foregoing, if the Company, SHI or the
Executive reasonably and in good faith determines that payment of any amount pursuant to this Agreement at the time provided for such payment would cause any amount so payable to be subject to Section 409A(a)(1) of the Code, then such amount
shall instead be paid at the earliest time at which it may be paid without causing this Agreement to be subject to Section 409A(a)(1) and all of the provisions of this Agreement shall be interpreted in a manner consistent with this
Section 12. The Company and SHI shall have the right to make such amendments, if any, to this Agreement as shall be necessary to avoid the application of Section 409A(a)(1) of the Code to the payments of amounts pursuant to this Agreement,
and shall give prompt notice of any such amendment to the Executive. If the Company or SHI defers payments to the Executive pursuant to this Section 12, then the Company or SHI, as the case may be, shall provide Executive with prompt written
notice thereof, including reasonable explanation and the estimated date on which it has determined it is permitted to make the payments deferred under this Section 12. In any event, the payments will not take longer than 190 days from the
Effective Time, provided however that the medical insurance coverage to be provided under Schedule I shall extend beyond this period pursuant to the terms of Schedule I and provided further that to the extent it is determined that Section 409A
would apply to such benefit if provided immediately after the Effective Time, such benefit shall commence as soon as possible without being subject to 409A, or the parties shall mutually agree on a mechanism to permit the benefit to be so provided.

 13. Non-Disparagement. 
 (a) The Company and SHI will not, nor will either of them cause or assist any other person to, make any statement to a third party or take any action which is intended to or would reasonably have the effect of disparaging or harming the
Executive or his business reputation; provided however that this provision shall not preclude such truthful disclosure or testimony as may be required before any tribunal or administrative agency, or under any applicable law, regulation or rule or
by any listing requirements of any securities exchange on which any securities of the Company or New Sally are listed, provided further that no damages shall be awarded pursuant to this section unless the basis therefor is established in a court of
competent jurisdiction. 
 (b) The Executive will not, nor will he cause or assist any other person to, make any statement to a third party
or take any action which is intended to or would reasonably have the effect of disparaging or harming the Company or SHI or the business reputation of the Company or SHI; provided, however that this provision shall not preclude such truthful
disclosure or testimony as may be required before any tribunal or administrative agency, or under any applicable law, regulation or rule or by any listing requirements of any securities exchange on which any securities of the Company or New Sally
are listed, provided further that no damages shall be awarded pursuant to this section unless the basis therefor is established in a court of competent jurisdiction.
 14. Treatment of Options. The Executive holds options to purchase shares of the common stock of the Company, par value $0.22 per share, issued under, and subject to the terms of, the Company’s equity
plans. The Company’s Board of Directors (including its Compensation and Leadership Development Committee) shall not take any action to cause such options to be converted (other than on a transitory basis), and shall not allow such options to be

  

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 converted (other than on a transitory basis), into options to purchase equity securities of New Sally, as a result of the
Transaction or otherwise. The number of shares subject to such options and the exercise price thereof will be adjusted on the same basis as the options held by all of the Consumer Products employees of the Company. For the avoidance of doubt, the
Executive’s termination of employment with the Company shall be treated as a retirement for purposes of the Company’s Employee Stock Option Plan of 2003 and any other equity plan using the same definition of ‘retirement.’

 15. Miscellaneous. Capitalized terms not defined herein shall have the meanings assigned to them in the Severance Agreement. No
provision of this Agreement may be modified or waived unless such modification or waiver is agreed to in writing and signed by the Executive and by a duly authorized officer of the Company. 
 16. Recitals. The recitals to this Agreement are hereby incorporated by reference into, and are deemed an integral part of, this Agreement.

 17. Release by Company. The Company and SHI, on behalf of each of themselves and anyone claiming through them (the “Company
Releasing Parties”), hereby agree not to sue the Executive based upon facts that are known on the date of this Agreement by any director of the Company as of the date of this Agreement (“Known Facts”), and agree to release and
discharge, fully, finally and forever, the Executive from any and all claims, causes of action, lawsuits, liabilities, debts, accounts, covenants, contracts, controversies, agreements, promises, sums of money, damages, judgments and demands of any
nature whatsoever, in law or in equity, asserted or not asserted, foreseen or unforeseen, which the Company Releasing Parties ever had or may presently have against the Executive arising from the beginning of time up to and including the effective
date of this Agreement, including, without limitation, all matters in any way related to Executive’s employment by the Company or his service as an officer of the Company or the terms and conditions thereof, but only to the extent such claims,
causes of action, lawsuits, liabilities, debts, accounts, covenants, contracts, controversies, agreements, promises, sums of money, damages, judgments and demands are based upon Known Facts; provided, however, that nothing contained in this
Section 17 shall apply to, or release the Executive from, any obligation or commitment of Executive contained in this Agreement. 
 18.
Employment by Company or SHI. For purposes of this Agreement, employment by the Company or SHI, as the case may be, shall include employment with the Company, SHI or any corporation or other entity in which the Company or SHI has, or any
parent of either such entity has, a direct or indirect ownership interest of 50% or more of the total combined voting power of the then outstanding securities of such corporation or other entity entitled to vote generally in the election of
directors. 
 19. Consulting Arrangement. Following the termination of the Executive’s employment at the Effective Time (which is
also referred to herein as the “Retirement Date”), the Executive shall be reasonably available (consistent with his other obligations) to provide consulting services to the executive management of SHI and its affiliates in accordance with
the following terms (the “Consulting Arrangement,” and the period during which such consulting services will be provided, the “Consulting Period”): 
  

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 (a) Term. The Consulting Arrangement shall last for a term of three (3) years commencing
immediately following the Retirement Date; provided that the Consulting Arrangement shall terminate (and neither party shall thereafter have any on-going duty or obligation to the other hereunder in connection with the Consulting Arrangement)
immediately upon the first to occur of (i) the Executive’s death or a disability for a period of six months that shall render him substantially incapable of performing any consulting services for SHI or (ii) the material breach by the
Executive of any term of this Agreement (provided that the Company shall have given the Executive not less than 20 days’ prior written notice specifying in reasonable detail the nature of such breach and, if capable of being cured, the
Executive shall not have cured such breach until such 20-day period). 
 (b) Scope of Services. 
 (i) Services shall not exceed an average of five (5) days per calendar quarter, or a total of 20 days per calendar year. 

(ii) Services shall be performed during normal business hours, on a Monday through Friday, for up to eight (8) hours in a day,
unless otherwise agreed by the Company and the Executive on a case by case basis. 
 (iii) Services shall be performed at
SHI’s headquarters in Denton, Texas. Consultation services may be performed at other locations only as reasonably requested by SHI and upon the agreement of SHI and the Executive. 
 (c) Compensation. In consideration for the Executive’s services to SHI under the Consulting Arrangement, the Executive shall receive from SHI
$500,000 per annum, payable in monthly installments of $41,666.67 on the first day of each month. 
 (d) Expense Reimbursement. All
reasonable business expenses incurred by the Executive in the performance of consultation services shall be reimbursed by SHI upon receipt of documentation of such expenses. 
 (e) Administrative Matters. SHI shall provide the Executive administrative assistance and office accommodations appropriate to executive
personnel, as reasonably requested by the Executive from time to time, to facilitate the Executive’s performance of services under the Consulting Arrangement. 
 (f) Independent Contractor. The Executive will perform services pursuant to the Consulting Arrangement as an Independent Contractor, not an employee, and will control the manner in which he will perform the
services under the Consulting Arrangement. The Executive will be responsible for the payment of all taxes related to his compensation under the Consulting Arrangement, and SHI shall not withhold any taxes from his compensation. The Executive will
not receive benefits under any benefit plan of the Company or SHI during the Consulting Period, unless otherwise provided for in this Agreement. 
 (g) Termination of the Consulting Arrangement by the Executive. The Consulting Arrangement may be terminated by the Executive by the tender of his resignation to SHI with 30 days’ notice, and upon the expiration of such notice
period the obligations of each party under the Consulting Arrangement shall cease. 
  

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 20. Setoff; No Mitigation. No payments or benefits payable to or with respect to Executive
pursuant to this Agreement shall be reduced by any amount the Executive may earn or receive from employment with another employer or from any other source, except as otherwise expressly provided in this Agreement. The Executive shall have no duty to
mitigate his damages by seeking other employment. 
 21. Indemnification; D&O Coverage. The Company shall continue to indemnify
the Executive and provide directors’ and officers’ liability insurance coverage (including, where required, legal defense) for as long as liability may exist for actions prior to the Retirement Date. During the Consulting Period, SHI shall
indemnify the Executive, if permitted by applicable law, to the same extent it indemnifies its then-current officers and directors. In addition, SHI shall use its reasonable efforts to include the Executive in its directors and officers’
liability insurance coverage, provided that SHI shall not be required to do so if it would result in material incremental cost. 
 22.
Noncompetition; Nonsolicitation. The Executive acknowledges that in the course of his employment with the Company and its subsidiaries he has and will become familiar with trade secrets and other confidential information concerning such
entities and his services have been and will be of special and unique value to the Company, SHI and their respective subsidiaries. 
 (a)
Noncompetition. The Executive agrees that until the termination of the Consulting Arrangement (the “Noncompetition Period”), he shall not in any manner, directly or indirectly, through any person, firm or corporation, alone or as a
member of a partnership or as an officer, director, stockholder, investor or employee of or consultant to any other corporation or enterprise or otherwise, engage or be engaged, or assist any other person, firm, corporation or enterprise in engaging
or being engaged, in any business, in which the Executive was involved or had knowledge, being conducted by, or contemplated by, the Company or SHI or any of their respective subsidiaries as of the Retirement Date or during the Noncompetition Period
in any geographic area in which the Company or SHI or any of their respective subsidiaries is at such time conducting such business. 
 (b)
Nonsolicitation. The Executive further agrees that during the Noncompetition Period he shall not (i) in any manner, directly or indirectly, induce or attempt to induce any employee of the Company or SHI any of their respective
subsidiaries to terminate or abandon his or her employment for any purpose whatsoever or (ii) in connection with any business to which Section 23(a) applies, call on, service, solicit or otherwise do business with any customer of the
Company or SHI any of their respective subsidiaries. 
 (c) Exceptions. Nothing in this Section 23 shall prohibit the Executive
from being (i) a stockholder in a mutual fund or a diversified investment company or (ii) an owner of not more than two percent of the outstanding stock of any class of a corporation, any securities of which are publicly traded, so
long as the Executive has no active participation in the business of such corporation. 
  

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 IN WITNESS WHEREOF, the Company and SHI have caused this Agreement to be executed by their duly
authorized officer and the Executive has executed this Agreement as of the dates set forth below. 
  

			
	ALBERTO-CULVER COMPANY
		
	By:	 	 /s/ Gary P. Schmidt

	Name:	 	Gary P. Schmidt
	Its:	 	Senior Vice President, General Counsel and Secretary
	
	Date: June 18, 2006
	
	SALLY HOLDINGS, INC.
		
	By:	 	 /s/ Gary Winterhalter

	Name:	 	Gary Winterhalter
	Its:	 	President
	
	MICHAEL H. RENZULLI
	
	 /s/ Michael H. Renzulli

	
	Date: June 18, 2006

 [Signature Page to Michael H. Renzulli Termination Agreement] 
  

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 SCHEDULE I 
 TO 
 TERMINATION AND CONSULTING AGREEMENT 
 Provided that the Company and SHI have received a release in the form attached hereto as Exhibit A signed by the Executive (the “Release”) at or after the
Effective Time, the Executive shall, pursuant and subject to the terms and conditions of this Agreement, be entitled to the following benefits: 
 Lump Sum Payment in Respect of Waiver of Severance Agreement 
 Within 30 days following receipt of the Release by the
Company and SHI, SHI shall pay to the Executive a lump sum payment equal to $3,641,034. 
 Additional Payment

 If the Effective Time occurs prior to January 31, 2007, the Company shall pay to the Executive , also within 30 days following receipt of the
Release by the Company and SHI, a lump sum equal to: 
 (i) the amount that the Executive would have received in salary, at the annual rate in effect for him
at the Effective Time, had he remained an employee of the Company from the Effective Time until January 31, 2007; plus 
 (ii) an amount equal to
any additional amounts that would have been, but were not previously, allocated to the Executive’s account under the Company’s Executive Deferred Compensation Plan (the “EDCP”), pursuant to Section 2.8(a)-(c) of the
EDCP had the Executive remained an employee of the Company through January 31, 2007; plus 
 (iii) an amount equal to the product of (A) the
amount owed to the Executive as of the Effective Time, pursuant to the terms of the MIP, in respect of his MIP award for fiscal 2007 (it being understood that there will be no amounts owed at the Effective Time under the SVIP in respect of any SVIP
awards made with respect to a performance cycle commencing on October 1, 2006) and (B) a fraction, the numerator of which is the number of days between the Effective Time and January 31, 2007 and the denominator of which is the number
of days between October 1, 2006 and the Effective Time. 
 Continued Medical Coverage 
 For a period of 36 months commencing at the Effective Time, SHI shall continue to keep in full force and effect all group medical benefits covering the Executive and his
dependents with the same level of coverage, upon the same terms and otherwise to the same extent as such benefits shall have been in effect immediately prior to the Effective Time (such coverage, the “Date of Termination Coverage”) or, if
more favorable to the Executive, as provided generally with respect to other peer executives of SHI and its affiliated companies, and SHI and the Executive shall share the costs of the continuation of such coverage in the same proportion as such
costs were shared immediately prior to the Effective Time, provided that the Executive shall have the right, thereafter and for his lifetime, following such 36-month period, to elect to continue to participate, at the Executive’s sole cost at
the applicable COBRA rate, in the applicable medical plan or plans. 
  

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 Accrued Vacation 
 The Executive will be paid for his accrued but unused vacation in accordance with, and subject to any limitations provided by, the Company’s policies regarding same. 
  

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 EXHIBIT A 
 RELEASE 
 Alberto-Culver Company (the “Company”), Sally Holdings, Inc. (“SHI”)
and Michael H. Renzulli (the “Executive”) enter into this Release (this “Release”) on the      day of             , 2006. 

W I T N E S S E T H 
 WHEREAS, the Company, SHI and Executive are parties to a Termination and Consulting Agreement dated June     , 2006 (the
“Agreement”); 
 WHEREAS, as a condition for the receipt of certain benefits to be paid following the date of this Release (the
“Benefits”) under the Agreement, Executive has agreed to execute this Release. 
 NOW THEREFORE, in consideration
of the covenants and mutual promises herein contained, it is agreed as follows: 
 (a) General Release. The Executive, on behalf of the
Executive and anyone claiming through the Executive, hereby agrees not to sue the Company, SHI, or any divisions, subsidiaries, affiliates or other related entities of the above specified entities (whether or not such entities are wholly owned) or
any of the past, present or future directors, officers, administrators, trustees, fiduciaries, employees, agents or attorneys of the Company, SHI or any of such other entities, or the predecessors, successors or assigns of any of them (hereinafter
referred to as the “Released Parties”), and agrees to release and discharge, fully, finally and forever, the Released Parties from any and all claims, causes of action, lawsuits, liabilities, debts, accounts, covenants, contracts,
controversies, agreements, promises, sums of money, damages, judgments and demands of any nature whatsoever, in law or in equity, both known and unknown, asserted or not asserted, foreseen or unforeseen, which the Executive ever had or may presently
have against any of the Released Parties arising from the beginning of time up to and including the date on which this Release is signed and delivered to the Company and SHI, including, without limitation, all matters in any way related to the
Executive’s employment by the Company, the terms and conditions thereof, the Severance Agreement (as such term is defined in the Agreement), any failure to promote the Executive and the termination or cessation of the Executive’s
employment with the Company, and including, without limitation, any and all claims arising under the Civil Rights Act of 1964, as amended, the Civil Rights Act of 1991, the Civil Rights Act of 1866, the Age Discrimination in Employment Act, the
Older Workers’ Benefit Protection Act, the Family and Medical Leave Act, the Americans With Disabilities Act, the Employee Retirement Income Security Act of 1974, the Illinois Human Rights Act, the Cook County Human Rights Ordinance, the City
of Chicago Human Rights Ordinance, the Texas Commission on Human Right Act, or any other federal, state, local or foreign statute, regulation, ordinance or order, or pursuant to any common law doctrine; provided, however, that nothing
contained in this Release shall apply to, or release the Company or SHI from, any obligation of the Company or SHI contained in the Agreement or any vested or accrued benefit pursuant to any employee benefit or equity plan of the Company (including,
but not limited to, Alberto Culver’s Key Executive Deferred Compensation Agreement and Executive Deferred Compensation Plan). The Executive acknowledges that the consideration offered in connection 

 with the Agreement was and is in part for this Release and such portion of such consideration is accepted by the
Executive as being in full accord, satisfaction, compromise and settlement of any and all claims or potential claims, and the Executive expressly agrees that the Executive is not entitled to, and shall not receive, any further recovery of any kind
from the Company or any of the other Released Parties, and that in the event of any further proceedings whatsoever based upon any matter released herein, neither the Company nor any of the other Released Parties shall have any further monetary or
other obligation of any kind to the Executive, including any obligation for any costs, expenses or attorneys’ fees incurred by or on behalf of the Executive, except as provided in the Agreement. 
 (b) EXECUTIVE SPECIFICALLY WAIVES AND RELEASES THE RELEASED PARTIES FROM ALL CLAIMS EXECUTIVE MAY HAVE AS OF THE DATE EXECUTIVE SIGNS THIS RELEASE
REGARDING CLAIMS OR RIGHTS ARISING UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, AS AMENDED, 29 U.S.C. § 621 (“ADEA”). EXECUTIVE FURTHER AGREES: (A) THAT EXECUTIVE’S WAIVER OF RIGHTS UNDER THIS RELEASE IS KNOWING
AND VOLUNTARY AND IN COMPLIANCE WITH THE OLDER WORKER’S BENEFIT PROTECTIVE ACT OF 1990; (B) THAT EXECUTIVE UNDERSTANDS THE TERMS OF THIS RELEASE; (C) THAT CERTAIN BENEFITS CALLED FOR IN THE AGREEMENT TO BE PAID FOLLOWING THE DATE OF
THIS RELEASE WOULD NOT BE PROVIDED TO ANY EXECUTIVE TERMINATING HIS OR HER EMPLOYMENT WITH THE COMPANY WHO DID NOT SIGN A RELEASE SIMILAR TO THIS RELEASE, THAT SUCH BENEFITS WOULD NOT HAVE BEEN PROVIDED IN THEIR ENTIRETY HAD EXECUTIVE NOT SIGNED
THIS RELEASE, AND THAT SUCH BENEFITS ARE IN EXCHANGE IN PART FOR THE SIGNING OF THIS RELEASE; (D) THAT EXECUTIVE HAS BEEN ADVISED IN WRITING BY THE COMPANY TO CONSULT WITH AN ATTORNEY PRIOR TO EXECUTING THIS RELEASE; (E) THAT THE COMPANY
HAS GIVEN EXECUTIVE A PERIOD OF AT LEAST TWENTY-ONE (21) DAYS WITHIN WHICH TO CONSIDER THIS RELEASE; (F) THAT EXECUTIVE REALIZES THAT FOLLOWING EXECUTIVE’S EXECUTION OF THIS RELEASE, EXECUTIVE HAS SEVEN (7) DAYS IN WHICH TO
REVOKE THIS RELEASE BY WRITTEN NOTICE TO THE UNDERSIGNED, AND (G) THAT THIS RELEASE SHALL BE VOID AND OF NO FORCE AND EFFECT IF EXECUTIVE CHOOSES TO SO REVOKE, AND IF EXECUTIVE CHOOSES NOT TO SO REVOKE, THAT THIS RELEASE THEN BECOMES EFFECTIVE
AND ENFORCEABLE. 
 (c) To the maximum extent permitted by law, Executive covenants not to sue or to institute or cause to be instituted any
action in any federal, state, or local agency or court against any of the Released Parties regarding any of the claims released in this Release. Notwithstanding the foregoing, nothing herein shall prevent Executive or any of the Released Parties
from instituting any action required to enforce the terms of the Agreement and this Release. 
  

							
	SALLY HOLDINGS, INC.	 		 	EXECUTIVE
				
	By:	 	  
	 		 	  

	Name:	 	  
	 		 	Michael H. Renzulli
	Title:	 	  
	 		 	

  

 12 

			
	ALBERTO-CULVER COMPANY
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

 13Bolt Technology Corporation 2006 Stock Option Plan

 Exhibit 10.1 
 BOLT TECHNOLOGY CORPORATION 
 2006 STOCK OPTION PLAN 
 1. Purpose. The purpose of the Bolt Technology Corporation 2006 Stock Option Plan (the “Plan”) is to
recognize the contributions made by Employees and Directors of Bolt Technology Corporation (the “Company”) or a Subsidiary and to provide such persons with an additional incentive to use maximum efforts for the future success of the
Company and any Subsidiary and to enhance the ability of the Company or a Subsidiary to attract, retain and motivate individuals upon whom the Company’s sustained growth and financial success depend by providing such persons with an opportunity
to acquire or increase their proprietary interest in the Company through receipt of rights to acquire Common Stock. 
 2.
Definitions. As used in the Plan, the following definitions shall apply to the capitalized terms indicated below: 
 “Board” or “Board of Directors” means the Board of Directors of the Company duly elected by the shareholders of the Company. 
 “Change of Control” means the earliest to occur of any of the following events: (i) the shareholders of the Company (or the Board of Directors, if shareholder action is not required) approve a
sale or other disposition of all or substantially all of the assets of the Company, other than to a Subsidiary; (ii) the shareholders of the Company (or the Board of Directors, if shareholder action is not required) approve a merger, plan of
reorganization, consolidation or share exchange with any other entity, and immediately following such a transaction the holders of the voting securities of the Company or such surviving entity immediately prior to such transaction hold securities
representing fifty percent (50%) or less of the combined voting power of the voting securities of the Company or such surviving entity immediately after such transaction; or (iii) the date any entity, person or group, within the meaning of
Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, as amended, other than the Company or any of its Subsidiaries or any employee benefit plan (or related trust) sponsored or maintained by the Company or any of its Subsidiaries shall
have become the beneficial owner of, or shall have obtained voting control over, more than fifty percent (50%) of the outstanding Shares of the Company’s Common Stock; provided, however, that as to any award under the Plan that consists of
deferred compensation subject to Section 409A of the Code, the definition of “Change of Control” shall be deemed modified to the extent necessary to comply with Section 409A of the Code. 
 “Code” means the Internal Revenue Code of 1986, as amended. 
 “Committee” means the Board of Directors, or a committee of the Board of Directors appointed in accordance with Section 3 of the
Plan, when acting in connection with the administration of the Plan. 
 “Common Stock” means the common stock, no par value,
of the Company. 

 “Company” means Bolt Technology Corporation, a Connecticut corporation. 
 “Continuous Service” means that the Optionee’s service with the Company or a Subsidiary, whether as an Employee or Director, is not
interrupted or terminated. The Optionee’s Continuous Service shall not be deemed to have terminated merely because of a change in the capacity in which the Optionee renders service to the Company or a Subsidiary as an Employee or Director or a
change in the entity for which the Optionee renders such service, provided that there is no interruption or termination of the Optionee’s Continuous Service. For example, a change in status from an Employee of the Company to a Director will not
constitute an interruption of Continuous Service. Notwithstanding the foregoing, an Optionee’s Continuous Service shall be deemed to have terminated with respect to all Incentive Stock Options granted to such Optionee on such date as such
Optionee’s Continuous Service as an Employee terminates. To the extent permitted by law and any leave of absence policy of the Company, the Committee 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 any leave of absence approved by that party, including sick leave, military leave or any other personal leave; provided, however, an Optionee’s Continuous
Service shall not be deemed to have been terminated because of an approved leave of absence from active service with the Company or a Subsidiary on account of temporary illness, authorized vacation, or granted for reasons of professional
advancement, education, health, or government service, or during military leave for any period that is required by the Uniformed Services Employment and Reemployment Rights Act of 1994, as amended (“USERRA”) (if the Optionee returns to
active service with the Company or a Subsidiary within the period required by USSERA after termination of military leave), or during any period required to be treated as a leave of absence by virtue of any applicable and binding statute (such as the
Family and Medical Leave Act of 1993, as amended), personnel policy, or employment agreement. Whether an authorized leave of absence constitutes termination of Continuous Service hereunder shall be determined by the Committee. 
 “Director” means each member of the Board of Directors of the Company. 
 “Disability” means (i) in the case of an Optionee who receives a Nonqualified Stock Option and whose employment arrangement with
the Company or a Subsidiary is subject to the terms of an employment agreement between such Optionee and the Company or Subsidiary, which employment agreement includes a definition of “Disability,” the meaning set forth in such agreement
for “Disability” during the period that agreement remains in effect; and (ii) in all other cases, the term “Disability” as used in this Plan or any Option Document shall have the meaning set forth in Section 22(e)(3) of
the Code. 
 “Employee” means any person, including officers, employed by the Company or a Subsidiary. However, service
solely as a Director, or payment of a fee for such service, shall not cause a Director to be considered an “Employee” for purposes of the Plan. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

 “Fair Market Value” means, as of a particular date, the value of the Common Stock
determined as follows: (i) if the Common Stock is traded in a public market, then the Fair Market Value per share shall be, (A) if the Common Stock is listed on a national securities exchange or included in the NASDAQ Stock Market, the
last reported sale price thereof on the relevant date (or if no Shares of Common Stock were traded on such date, the next preceding date on which the Common Stock was traded), or (B) if the Common Stock is not so listed or included, the average
of the last reported “bid” and “asked” prices thereof on the relevant date (or if no Shares of Common Stock were traded on such date, the next preceding date on which the Common Stock was traded) as reported on the OTC Bulletin
Board, or the Fair Market Value per share as determined by any other method adopted by the Committee from time to time as the Committee may deem appropriate or as may be required in order to comply with applicable laws and regulations; and
(ii) at any time at which the Common Stock is not traded in a public market, then the Fair Market Value per share shall be determined by the Board, acting in good faith, and such determination shall be final and binding for all purposes of the
Plan. 
 “Incentive Stock Option” or “ISO” means an Option that is intended to qualify as an
“incentive stock option” within the meaning of Section 422 of the Code. 
 “Non-Employee Director” means a
Director who either (i) is not a current Employee or officer of the Company or a Subsidiary and does not receive compensation directly or indirectly from the Company or a Subsidiary for services rendered as a consultant or in any capacity other
than as a Director, or (ii) is otherwise considered a “non-employee director” for purposes of Rule 16b-3 promulgated under the Exchange Act. 
 “Nonqualified Stock Option” means an Option that is not intended to qualify, or otherwise does not qualify, as an “incentive stock option” within the meaning of Section 422 of the Code.

 “Option” means either an ISO or a Nonqualified Stock Option granted under the Plan. 
 “Option Document” means the document described in Section 7 of the Plan that sets forth the terms and conditions of an Option
grant. Each Option Document shall be subject to the terms and conditions of the Plan. 
 “Optionee” means a person to whom
an Option has been granted under the Plan, which Option has not been exercised and has not expired or terminated, or if applicable, such other person who holds an outstanding Option. 
 “Option Price” means the price at which Shares may be purchased upon exercise of an Option determined in accordance with
Section 7(b) of the Plan. 
 “Securities Act” means the Securities Act of 1933, as amended. 
 “Shares” means the shares of Common Stock of the Company that are the subject of Options. 

 “Subsidiary” means a corporation that is a subsidiary corporation with respect to the
Company within the meaning of Section 424(f) of the Code. 
 “Ten Percent Shareholder” means an Employee 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 of a Subsidiary. 
 3. Administration of the Plan. The Plan shall be administered by the Board; however, the Board may designate a committee composed of two or
more Non-Employee Directors to administer the Plan in its stead. Any such committee so designated by the Board to administer the Plan shall be constituted as necessary to comply with the legal requirements, if any, relating to the administration of
the types of options granted under the Plan imposed by applicable corporate and securities laws, the Code and any stock exchange or national market system upon which the Common Stock is then listed or traded. Notwithstanding anything to the contrary
contained in this Section 3, the Board shall constitute the Committee and administer the Plan with respect to Options granted to Non-Employee Directors. 
 (a) Meetings. The Committee may hold meetings at such times and places as it may determine. Acts approved at a meeting by a majority of the members of the Committee or acts approved in writing by the unanimous
consent of the members of the Committee shall be the valid acts of the Committee. 
 (b) Powers of Committee. The Committee shall have
the power, subject to the express provisions of the Plan: 
 (i) To determine from time to time which of the eligible persons under the Plan
shall be granted Options; when and how each Option shall be granted; what type or combinations of types of Options shall be granted; the provisions of each Option granted, which need not be identical, including any terms of vesting of the Option and
the price at which the Option shall be granted; and, the number of Shares subject to the Option. 
 (ii) To construe and interpret the Plan
and Options granted under it, and to establish, amend and revoke rules and regulations for its administration. The Committee in the exercise of this power, may correct any defect, omission or inconsistency in the Plan or in any Option Document in a
manner and to the extent it shall deem necessary or expedient to make the Plan fully effective. 
 (iii) Generally, to exercise such other
powers and perform such acts as the Committee 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 any Options. 
 (iv) The Committee may delegate to officers or employees of the Company or a Subsidiary the authority, subject to such terms as the Committee may
determine, to perform administrative functions with respect to the Plan and Option Documents. 

 (c) Exculpation. No member of the Committee shall be personally liable for monetary damages for
any action taken or any failure to take any action in connection with the administration of the Plan or the granting of Options under the Plan, provided that this Subsection 3(c) shall not apply to: (i) any breach of such member’s
duty of loyalty to the Company or its shareholders; (ii) acts or omissions not in good faith or involving intentional misconduct or a knowing violation of law; (iii) acts or omissions that would result in liability under the circumstances
described in the exclusions contained in Section 33-636(b)(4) of the Connecticut Stock Corporation Act, as amended; and (iv) any transaction from which the member derived an improper personal benefit. 
 (d) Indemnification. Service on the Committee shall constitute service as a member of the Board of the Company. Each member of the
Committee shall be entitled without further action on such person’s part to indemnity from the Company to the fullest extent provided by applicable law and the Company’s Certificate of Incorporation and/or Bylaws in connection with or
arising out of any action, suit or proceeding with respect to the administration of the Plan or the granting of Options thereunder in which such person may be involved by reason of such person’s being or having been a member of the Committee,
whether or not such person continues to be a member of the Committee at the time of the action, suit or proceeding. 
 (e) Effect of
Committee Action. The Committee’s determinations under the Plan (including, without limitation, determinations of the persons to receive Options, the form, amount and timing of such Options, the terms and provisions of such Options and the
Option Documents evidencing same) shall be made in its discretion and need not be uniform and may be made by it selectively among persons who receive, or are eligible to receive, Options under the Plan, whether or not such persons are similarly
situated. All determinations and interpretations made by the Committee shall be final, binding and conclusive on all persons, including without limitation, all Optionees and persons claiming rights from or through an Optionee. 
 4. Shares Subject to Plan. Subject to adjustment as provided in Section 9, the number of Shares that may be issued
pursuant to Options shall not exceed, in the aggregate, 500,000 Shares. The Shares shall be issued from authorized and unissued or reacquired Common Stock, including Shares repurchased by the Company. If an Option shall for any reason expire or
otherwise terminate without having been exercised in full for any reason, the Shares for which the Option was not exercised shall revert to, and may again become available for the grant of one or more Options under the Plan. No Options shall be
granted under the Plan after June 30, 2016; provided, however, that all Options granted under the Plan prior to such date shall remain in effect until such Options have been exercised or terminated in accordance with the Plan and the terms of
such Options. 
 5. Eligibility. 
 (a) Eligibility for Grant of Options. Nonqualified Stock Options shall be granted to Non-Employee Directors as set forth in Section 6, and may otherwise be granted to Non-Employee Directors at the
discretion of the Committee. Nonqualified Stock Options and/or ISOs (or a combination thereof) may be granted to Employees of the Company or its Subsidiaries, at the discretion of the Committee. 

 (b) Ten Percent Shareholders. A Ten Percent Shareholder shall not be granted an ISO unless the
exercise price of such Option is at least 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) Committee To Determine. The Committee, in its sole discretion, shall determine all questions of eligibility to receive Options under the Plan.

 6. Non-Employee Director Grants under the Plan. Notwithstanding any provision of the Plan to the contrary, each Non-Employee
Director of the Company who was elected at the Company’s Annual Meeting of Shareholders held in 2003, 2004 or 2005, shall be granted a Nonqualified Stock Option to purchase 3,000 Shares of Common Stock upon approval of the Plan by the
shareholders of the Company. Each Non-Employee Director of the Company who is elected by the shareholders of the Company at the Company’s Annual Meeting of Shareholders held in 2006 and in each year of election thereafter ending with the year
2015, shall be granted a Nonqualified Stock Option to purchase 5,000 Shares of Common Stock on the date so elected to the Board. Each Option granted pursuant to this Section 6 shall have an Option Term of five (5) years from the date it is
granted and shall be first exercisable as to twenty-five percent (25%) of the Shares covered under the Option in each of years two through five of its term (each year commencing on the anniversary date of the grant).  
 7. Option Documents and Terms. Each Option granted under the Plan shall be a Nonqualified Stock Option, unless the Option specifically
shall be designated at the time of grant to be an ISO. If any Option designated as an ISO is determined for any reason not to qualify as an incentive stock option within the meaning of Section 422 of the Code, such Option shall be treated as a
Nonqualified Stock Option for all purposes under the provisions of the Plan. Each Option granted pursuant to the Plan shall be evidenced by an Option Document in such form as the Committee shall from time to time approve, which Option Document shall
comply with and be subject to the following terms and conditions and such other terms and conditions as the Committee shall from time to time require that are not inconsistent with the terms of the Plan. 
 (a) Number of Option Shares. Each Option Document shall state the number of Shares to which it pertains. An Optionee may receive more than
one Option and the Options received may include Options that are intended to be ISOs and Options that are not intended to be ISOs, but only on the terms, and subject to the conditions and restrictions, of the Plan. 
 (b) Option Price. Each Option Document shall state the Option Price applicable to the Option granted therein. Subject to the provisions of
Section 5(b) with respect to a Ten Percent Shareholder granted an ISO, the exercise price of any Option, whether a Nonqualified Stock Option or an ISO, shall in no event ever be less than 100% of the Fair Market Value of the Shares subject to
the Option on the date the Option is granted as determined by the Committee in accordance with this Section 7(b). Notwithstanding the foregoing, an Option may be granted with an exercise price lower than that set forth in the preceding sentence
if such Option is granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions of Section 424(a) of the Code. 

 (c) Exercise. No Option shall be exercisable during the year ending on the first anniversary date
of the granting of the Option. No Option shall be deemed to have been exercised prior to the receipt by the Company of written notice of such exercise and of payment in full of the Option price for the Shares to be purchased. Each such notice shall
specify the number of Shares to be purchased and (unless the Shares are covered by a then current registration statement or a notification under Regulation A under the Securities Act) shall contain the Optionee’s acknowledgment in form and
substance satisfactory to the Company that: (i) such Shares are being purchased for investment and not for distribution or resale (other than a distribution or resale which, in the opinion of counsel satisfactory to the Company, may be made
without violating the registration provisions of the Securities Act); (ii) the Optionee has been advised and understands that (A) the Shares have not been registered under the Securities Act and are “restricted securities” within
the meaning of Rule 144 under the Securities Act and are subject to restrictions on transfer, and (B) the Company is under no obligation to register the Shares under the Securities Act or to take any action which would make available to the
Optionee any exemption from such registration; (iii) such Shares may not be transferred without compliance with all applicable federal and state securities laws and any other restrictions contained in the Plan and the applicable Option
Document; and (iv) an appropriate legend referring to the foregoing restrictions on transfer and any other restrictions imposed under the Option Documents may be endorsed on the certificates. Notwithstanding the foregoing, if the Company
determines that issuance of Shares should be delayed pending (1) registration under federal or state securities laws, (2) the receipt of an opinion of counsel satisfactory to the Company that an appropriate exemption from such registration
is available, (3) the listing or inclusion of the Shares on any securities exchange or an automated quotation system, or (4) the consent or approval of any governmental regulatory body whose consent or approval is necessary in connection
with the issuance of such Shares, the Company may defer exercise of any Option granted hereunder until any of the events described in this sentence has occurred. 
 (d) Medium of Payment. 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 Committee in its
sole discretion, by one or more of the following methods. The Committee shall have authority to grant Options that do not entitle the Optionee to use all methods or that require prior written consent of the Company to use certain of the methods. The
methods of payment of the Option price are: 
 (i) cash or check payable in clearinghouse funds to the order of the Company; 
 (ii) by delivery to the Company of other Shares of Common Stock which, unless otherwise determined by the Committee, have been held for more than six
(6) months; 
 (iii) by a “net exercise” arrangement pursuant to which the Company will reduce the number of Shares issued
upon exercise by the largest whole number of the Shares 

 with a Fair Market Value that does not exceed the Option price; provided, however, that the Company shall
accept cash or other payment from the Optionee to the extent of any remaining balance of the aggregate Option price not so satisfied, provided further that the Shares will no longer be outstanding under an Option and will not be
exercisable thereafter to the extent so applied or withheld to satisfy tax withholding obligations pursuant to Section 11 below; or 
 (iv) any other form of legal consideration that may be acceptable to the Committee. 
 (e) Vesting. The total number of
Shares subject to an Option may vest and therefore become exercisable in periodic installments that may or may not be equal. An Option may be subject to such other terms and conditions on the time or times when it may be exercised (which may be
based on the satisfaction of certain performance criteria) as the Committee may deem appropriate. The vesting provisions of individual Options may vary. 
 (f) Termination of Options. 
 (i) No Option shall be exercisable after the first to occur of the
following: 
 (A) Expiration of the Option term specified in the Option Document, which expiration shall occur no later than (1) ten
(10) years from the date of grant, or (2) five (5) years from the date of grant of an ISO if the Optionee on the date of grant is a Ten Percent Shareholder; 
 (B) Unless otherwise set forth in the Option Document, expiration of three (3) months from the date the Optionee’s Continuous Service
terminates by reason of the Optionee’s retirement or Disability; provided however, that if the Optionee dies within such three-month period, any unexercised Option, to the extent to which it was exercisable at the time of his death, shall
thereafter be exercisable for a period not exceeding fifteen (15) months from the date of his death; 
 (C) Unless otherwise set forth
in the Option Document, expiration of fifteen (15) months from the date Optionee’s Continuous Service terminates due to the Optionee’s death; 
 (D) Unless otherwise set forth in the Option Document or in (E) below with respect to Non-Employee Director Options, upon the termination date of the Optionee’s Continuous Service in the event that the
Optionee’s Continuous Service is terminated for any reason other than death, Disability or retirement; or 
 (E) Notwithstanding
(B) and (D) above, in the case of Options granted to Non-Employee Directors pursuant to Section 6 above, expiration of a period of thirty (30) days from the date the Optionee’s Continuous Service terminates; provided
however, that if the Non-Employee Director dies within such thirty (30) days, any unexercised Option, to the extent to which it was exercisable at the time of his death, shall thereafter be exercisable for a period not exceeding fifteen
(15) months from the date of his death; or 

 (F) The date, if any, set by the Board of Directors or the Committee as an accelerated expiration date
in the event of the liquidation or dissolution of the Company or a Change of Control. 
 (ii) Notwithstanding the foregoing, if an
Optionee’s employment terminates by death, Disability or retirement after the first anniversary date of the granting of the Option and prior to an installment of his Option (other than the first installment) becoming exercisable and if there
are no conditions to the next succeeding installment becoming exercisable other than the passage of time, his Option thereupon shall become exercisable with respect to a number of Shares (in addition to Shares covered by installments theretofore
matured) equal to a pro rata portion of the Shares for which it would become exercisable upon the maturity of the next succeeding installment, such pro rata portion to be based upon the proportion which the number of full months in the period
beginning with the maturity date of the next preceding installment and ending with such termination of his employment bears to the total number of full months in the period beginning with the maturity date of the next preceding installment and
ending with the maturity date of the next succeeding installment. 
 (iii) Notwithstanding the foregoing, the Committee may extend the
period during which all or any portion of an Option may be exercised to a date no later than the Option term specified in the Option Document pursuant to Subsection 7(f)(i)(A), provided that any change pursuant to this Subsection 7(f)(iii)
which would cause an ISO to become a Nonqualified Stock Option may be made only with the consent of the Optionee. 
 (g) Transferability
of Options. Unless otherwise determined by the Committee with respect to a Nonqualified Stock Option, no Option granted under the Plan may be transferred, except by will or by the laws of descent and distribution and shall be exercisable
during the lifetime of an Optionee only by the Optionee. Notwithstanding the foregoing, an Optionee may, by delivering written notice to the Company in form satisfactory to the Company, designate a third party who, in the event of the
Optionee’s death, shall thereafter be entitled to exercise the Option. 
 (h) Limitation on ISO Grants. To the extent that the
aggregate Fair Market Value of the Shares of Common Stock (determined at the time the ISO is granted) with respect to which Incentive Stock Options are exercisable for the first time by an Optionee during any calendar year under all incentive stock
option plans of the Company or its Subsidiaries in which such Optionee has been granted ISOs exceeds $100,000, the Options or portions thereof that exceed such limit (according to the order in which they were granted) shall be treated as
Nonqualified Stock Options, notwithstanding any contrary provision of the applicable Option Document. 
 (i) Compliance with
Section 409A of the Code. Notwithstanding anything to the contrary set forth herein, any Option shall contain such provisions such that such Option will comply with the requirements of Section 409A of the Code. Such provisions, if any,
shall be determined by the Committee and shall be set forth in the Option Document evidencing such Option. 

 (j) Other Provisions. Subject to the provisions of the Plan, the Option Documents shall contain
such other provisions including, without limitation, additional restrictions upon the exercise of the Option or additional limitations upon the term of the Option, as the Committee shall deem advisable. 
 (k) Amendment. Subject to the provisions of the Plan, the Committee shall have the right to amend Option Documents issued to an Optionee, subject
to the Optionee’s consent if such amendment is not favorable to the Optionee, except that the consent of the Optionee shall not be required for any amendment made pursuant to Subsection 7(f)(i)(F) or Sections 8 and 9 of the Plan, as
applicable. 
 8. Change of Control. Unless otherwise provided in an applicable Option Document, immediately following the
consummation of a Change of Control, all outstanding Options shall terminate and cease to be outstanding, except to the extent assumed by a successor corporation (or parent thereof) or otherwise expressly continued in full force and effect pursuant
to the terms of any agreement governing a Change of Control. If Options terminate and are not assumed in connection with a Change of Control, all holders of such Options shall receive the same consideration that shareholders receive upon such Change
of Control to the extent that such Options are vested immediately prior to such Change of Control reduced by the Option price such Optionee would have had to pay upon the exercise of their respective Options and any applicable withholding taxes. The
Committee may provide for full or partial vesting of any outstanding Option prior to a Change of Control in the applicable Option Document or by unilateral amendment to any such Option Document after the grant of any such Option. 
 9. Adjustments on Changes in Capitalization. The aggregate number of Shares and class of Shares as to which Options may be granted
hereunder, the number and class or classes of Shares covered by each outstanding Option and the Option price thereof shall be proportionately adjusted in the event of a stock dividend, stock split, recapitalization or other change in the number or
class of issued and outstanding equity securities of the Company resulting from a subdivision or consolidation of the Common Stock and/or a recapitalization, reorganization or other capital adjustment (not including the issuance of Common Stock on
the conversion or exchange of other securities of the Company which are convertible into or exchangeable for Common Stock) affecting the Common Stock which is effected without receipt of consideration by the Company. The Committee shall have
authority to determine the adjustments to be made under this Section, and any such determination by the Committee shall be final, binding and conclusive; provided, however, that no adjustment shall be made which will cause an ISO to
lose its status as such without the consent of the Optionee, except in the case of any adjustment that may be deemed to have been made pursuant to a Change of Control under Section 8. 
 10. No Commitment to Retain. The grant of an Option pursuant to the Plan shall not be construed to imply or to constitute evidence of any
agreement, express or implied, on the part of the Company or any Subsidiary to retain the Optionee in the employ or service of the 

 Company or a Subsidiary and/or as a member of the Company’s Board or in any other capacity, or interfere in any way
with the right of the Company or a Subsidiary to terminate the services of an Optionee. 
 11. Withholding of Taxes. Whenever
the Company proposes or is required to deliver or transfer Shares in connection with the exercise of an Option, the Company shall have the right to: (a) require the recipient to remit or otherwise make available to the Company an amount
sufficient to satisfy any federal, state and/or local withholding tax requirements prior to the delivery or transfer of any certificate or certificates for such Shares; or (b) take whatever other action it deems necessary to protect its
interests with respect to tax liabilities. The Company’s obligation to make any delivery or transfer of Shares shall be conditioned on the Optionee’s compliance, to the Company’s satisfaction, with any withholding requirement. With
the consent of the Committee, in its sole discretion, an Optionee may satisfy any such withholding obligations by (i) authorizing the Company to withhold sufficient Shares from the Shares otherwise issuable to Optionee as a result of the
exercise of the Option, provided, however, that no Shares are withheld with a value exceeding the minimum amount of tax required to be withheld by law; or (ii) delivering to the Company other owned and unencumbered Shares of
Common Stock. 
 12. Shareholder Rights. No Optionee shall be deemed to be the holder of, or to have any of the rights of a
holder with respect to any Shares subject to an Option unless and until such Optionee has satisfied all requirements for exercise of the Option pursuant to its terms. 
 13. Interpretation. The Plan is intended to enable transactions under the Plan with respect to directors and officers (within the meaning of Section 16(a) under the Exchange Act) to satisfy the
conditions of said Rule 16b-3 under the Exchange Act or its successors; to the extent that any provision of the Plan would cause a conflict with such conditions or would cause the administration of the Plan as provided in Section 3 to fail to
satisfy the conditions of said Rule 16b-3, such provision shall be deemed null and void to the extent permitted by applicable law. This Section shall not be applicable if no class of the Company’s equity securities is then registered
pursuant to Section 12 of the Exchange Act. 
 14. Amendment or Termination of the Plan. The Board may amend, suspend or
terminate the Plan, but no such amendment or termination shall be made which would adversely affect any outstanding Options without the written consent of the affected Optionees. In addition, to the extent necessary to comply with Section 422
of the Code, Section 16b-3 under the Exchange Act or any other applicable law or regulation, including the requirements of any stock exchange or national market system upon which the Common Stock is then listed, the Corporation shall obtain
shareholder approval of any Plan amendment or termination. 
 15. Term of Plan and Effective Date. 
 (a) Term of Plan. Unless sooner terminated by the Board pursuant to Section 14, the Plan shall automatically terminate on the day before the
tenth (10th) anniversary of the date the Plan is adopted by the Board; provided however, that all applicable
provisions with respect to Options granted prior to such termination shall remain in effect until all the outstanding Options have been exercised or expired. 

 (b) Effective Date. The Plan is effective as of September 28, 2006, the date on which the
Plan was approved by the Board of Directors. The Plan is conditioned on the approval of the shareholders of the Company within twelve (12) months after the date the Plan was so adopted by the Board. No Options shall be granted under the Plan
until the Plan is duly approved by the shareholders of the Company. 
 16. Choice of Law. The law of the State of Connecticut
shall apply to all matters relating to the construction, validity and interpretation of the Plan and the Options granted under the Plan, without regard to such state’s conflict of laws principles. 

 BOLT TECHNOLOGY CORPORATION 
 INCENTIVE STOCK OPTION AGREEMENT 
 AGREEMENT made as of
                    , 200    , by and between Bolt Technology Corporation, a Connecticut corporation (the
“Company”), and
                                        
(the “Optionee”). 
 Pursuant to the Bolt Technology Corporation 2006 Stock Option Plan (as it may be further amended from
time to time, the “Plan”), the Company desires to grant to the Optionee, and the Optionee desires to accept from the Company, an option to purchase shares of the common stock of the Company, without par value (the “Common
Stock”), upon the terms and conditions set forth in this Agreement. 
 NOW, THEREFORE, the Company and the Optionee agree as
follows: 
 1. Grant of Option; Option Price. The Company hereby grants to the Optionee an option to purchase
                     shares of Common Stock at a purchase price per share of
$             (the “Option”). The purchase price is not less than the fair market value of the Common Stock on the date of grant. 
 The Option is intended to be treated as an option that is an incentive stock option within the meaning of Section 422 of the Internal Revenue Code
of 1986, as amended (the “Code”). Notwithstanding the intention of the Company and the Optionee that the Option will be treated as an incentive stock option, such treatment will depend upon satisfaction of certain conditions set
forth in the Code and may not be available in all instances. The Optionee hereby acknowledges and understands that to the extent that the Option does not qualify as an incentive stock option, the Option will be treated as a non-qualified stock
option. 
 There are potential tax consequences associated with the grant, vesting and exercise of this Option. It is the responsibility of
the Optionee to seek independent tax advice with regard to the tax treatment of the Option, the exercise thereof, the disposition of any Common Stock acquired upon exercise of the Option and any other related matters. 
 2. Entitlement to Exercise Option; Term of Option. The Option shall not be exercisable during the year ending on the first anniversary date of the
date hereof and then only with respect to the vested portion of the Option. Subject to the preceding sentence and the terms of this Agreement and the Plan, the Option shall only become exercisable in accordance with the following vesting schedule
based upon the number of full years of the Optionee’s Continuous Service (as defined in the Plan) following the date of grant: 
  

			
	 Vesting Date
	  	Number of Shares Vesting

 Unless sooner terminated pursuant to the terms of this Agreement, the Option will expire if and to the extent it is not
exercised on or before                     , 20    , such date not to exceed or be extended beyond
                     [ten years from date of grant]. 
 3. Exercise of Option; Medium of Payment. (a) Subject to the requirements of Section 2, the vested portion of the Option may be exercised in whole at any time or in part from time to time during the
term of the Option. To exercise the Option, the Optionee shall deliver to the Chief Executive Officer of the Company: (i) a written notice specifying the number of shares of Common Stock to be purchased, and (ii) payment in full of the
exercise price, together with the amount, if any, deemed necessary by the Company to enable it to satisfy any income tax withholding obligations with respect to the exercise of the Option or the sale of the shares of Common Stock covered thereby.

 (b) The medium of payment for exercising the Option may be one or a combination of the following: (i) cash or check payable in
clearinghouse funds to the order of the Company; (ii) by delivery to the Company of other shares of Common Stock which, unless otherwise determined by the Committee (as defined in the Plan), have been held for more than six (6) months;
(iii) by a “net exercise” arrangement (as described in the Plan); or (iv) any other form of legal consideration that may be acceptable to the Committee. If the Company determines that any federal, state, local or foreign tax or
withholding payment is required relating to the exercise of the Option or the sale of the shares of Common Stock covered thereby, then before the transfer of shares to the Optionee the Company shall have the right to require such payments from the
Optionee or withhold such amounts from other payments due to the Company by the Optionee. 
 4. Rights as a Stockholder. No shares of
Common Stock will be issued or delivered pursuant to an exercise of the Option until full payment for such shares has been made. The Optionee shall not be deemed to be, or have any rights as, a stockholder with respect to any shares covered by the
Option until a stock certificate for such shares has been issued to the Optionee. Except as otherwise provided herein, no adjustment shall be made for dividends or distributions or other rights for which the record date is prior to the date of
issuance of such stock certificate. 
 5. Nontransferability of Option. The Option is not assignable or transferable except by will or
by the applicable laws of descent and distribution. The Option is exercisable during the Optionee’s lifetime only by the Optionee. Notwithstanding the foregoing, the Optionee may, by delivering written notice to the Company in form satisfactory
to the Company, designate a third party who, in the event of the Optionee’s death, shall thereafter be entitled to exercise the Option. 
 6. Termination of Employment. (a) If the Optionee’s Continuous Service with the Company or any Subsidiary (as defined in the Plan) terminates by reason of the Optionee’s retirement or Disability (as defined in the
Plan), then, unless sooner terminated under the terms hereof or pursuant to the Plan, the Option will terminate on the date three (3) months after the date of the Optionee’s termination of Continuous Service; provided,
however, that if the Optionee dies within such three-month period, any unexercised Option, to the extent to which it 

 was exercisable at the time of the Optionee’s death, shall thereafter be exercisable for a period not exceeding
fifteen (15) months from the date of the Optionee’s death. If the Optionee’s Continuous Service with the Company terminates by reason of the Optionee’s death, then, unless sooner terminated under the terms hereof or pursuant to
the Plan, the Option will terminate on the date fifteen (15) months from the date of the Optionee’s death. If the Optionee’s Continuous Service with the Company terminates for any reason other than death, Disability or retirement, the
Option will terminate on the termination date of the Optionee’s Continuous Service with the Company. 
 (b) Notwithstanding the
foregoing, if an Optionee’s employment terminates by death, Disability or retirement after the first anniversary date of the date hereof and prior to an installment of the Option (other than the first installment) becoming exercisable and if
there are no conditions to the next succeeding installment becoming exercisable other than the passage of time, the Option shall become exercisable with respect to the number of shares calculated pursuant to Section 7(f)(ii) of the Plan.

 7. Plan Provisions Control. This Agreement is subject to the terms and conditions of the Plan, which are incorporated herein by
reference. The provisions of the Plan shall govern if and to the extent that there are inconsistencies between the provisions of the Plan and the provisions of this Agreement. The Optionee acknowledges that the Optionee has received a copy of the
Plan prior to the execution of this Agreement. 
 8. No Rights Conferred. Nothing in this Agreement shall give the Optionee any right
to continue in the employ or service of the Company or any Subsidiary and/or as a member of the Company’s Board of Directors or in any other capacity, or interfere in any way with the right of the Company or any Subsidiary to terminate the
employment or services of the Optionee. 
 9. Change of Control; Adjustments. The provisions of Section 8 of the Plan shall
govern upon the consummation of a Change of Control (as defined in the Plan). All references to the number and class of shares covered by this Agreement, the exercise price per share of the Option, and other terms in this Agreement may be
appropriately adjusted, in the discretion of the Committee, in the event of certain changes in capitalization, as set forth in Section 9 of the Plan. 
 10. Securities Law and Other Requirements. Exercise of the Option is subject to compliance with applicable securities and other laws, rules and regulations, including without limitation as set forth in
Section 7(c) of the Plan, and the Company may defer exercise of the Option to ensure compliance with such laws, rules and regulations. 
 11. Compliance with Section 409A of the Code. The Optionee hereby consents (without further consideration) to any change to the Option or this Agreement so the Optionee can avoid paying penalties under Section 409A
of the Code, even if those changes affect the terms and conditions of the Option and reduce its value or potential value. 
 12.
Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and permitted assigns. This Agreement may not be assigned or
transferred in whole or in part except as provided in the Plan. 

 13. Interpretation of this Agreement. All determinations and interpretations made by the Committee
with regard to any questions arising under the Plan or this Agreement shall be final, binding and conclusive as to all persons, including without limitation the Optionee and any person claiming rights from or through the Optionee. 
 14. Venue. Each party to this Agreement hereby irrevocably (i) consents and submits to the exclusive jurisdiction of the state and federal
courts in Fairfield County, Connecticut in connection with any disputes arising out of this Agreement, and (ii) waives any objection based on venue or inconvenient forum with respect to any action instituted therein arising under this Agreement
or the transactions contemplated hereby, and agrees that any dispute with respect to such matters shall be heard only in the courts described above. 
 15. Governing Law; Entire Agreement. This Agreement shall be governed by and construed in accordance with the laws of the State of Connecticut, without regard to such state’s conflict of laws principles.
This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior understandings and agreements, written or oral, of the parties hereto with respect to the subject matter hereof.
This Agreement may be amended by the Committee, subject to the Optionee’s consent if such amendment is not favorable to the Optionee, except that the consent of the Optionee shall not be required for any amendment made pursuant to
Section 7(f)(i)(F), Section 8 or Section 9 of the Plan, or as set forth in Section 12 of this Agreement. 
 IN WITNESS
WHEREOF, the undersigned have executed this Agreement as of the date first written above. 
  

			
	BOLT TECHNOLOGY CORPORATION
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	OPTIONEE
	
	  

 BOLT TECHNOLOGY CORPORATION 
 NONQUALIFIED STOCK OPTION AGREEMENT 
 AGREEMENT made as of
                    , 200    , by and between Bolt Technology Corporation, a Connecticut corporation (the
“Company”), and
                                        
(the “Optionee”). 
 Pursuant to the Bolt Technology Corporation 2006 Stock Option Plan (as it may be further amended from
time to time, the “Plan”), the Company desires to grant to the Optionee, and the Optionee desires to accept from the Company, an option to purchase shares of the common stock of the Company, without par value (the “Common
Stock”), upon the terms and conditions set forth in this Agreement. 
 NOW, THEREFORE, the Company and the Optionee agree as
follows: 
 1. Grant of Option; Option Price. The Company hereby grants to the Optionee an option to purchase
                     shares of Common Stock at a purchase price per share of
$             (the “Option”). The Option is intended to be treated as an option that is not an incentive stock option within the meaning of Section 422
of the Internal Revenue Code of 1986, as amended (the “Code”). The purchase price is not less than the fair market value of the Common Stock on the date of grant. 
 There are potential tax consequences associated with the grant, vesting and exercise of this Option. It is the responsibility of the Optionee to seek
independent tax advice with regard to the tax treatment of the Option, the exercise thereof, the disposition of any Common Stock acquired upon exercise of the Option and any other related matters. 
 2. Entitlement to Exercise Option; Term of Option. The Option shall not be exercisable during the year ending on the first anniversary date of the
date hereof and then only with respect to the vested portion of the Option. Subject to the preceding sentence and the terms of this Agreement and the Plan, the Option shall only become exercisable in accordance with the following vesting schedule
based upon the number of full years of the Optionee’s Continuous Service (as defined in the Plan) following the date of grant: 
  

			
	 Vesting Date
	  	Number of Shares Vesting

  
 Unless sooner terminated pursuant to the
terms of this Agreement, the Option will expire if and to the extent it is not exercised on or before                     ,
20    , such date not to exceed or be extended beyond                      [ten years from date of grant].

 3. Exercise of Option; Medium of Payment. (a) Subject to the requirements of Section 2, the vested portion of the Option
may be exercised in whole at any time or in part from time to time during the term of the Option. To exercise the Option, the Optionee shall deliver to 

 the Chief Executive Officer of the Company: (i) a written notice specifying the number of shares of Common Stock to
be purchased, and (ii) payment in full of the exercise price, together with the amount, if any, deemed necessary by the Company to enable it to satisfy any income tax withholding obligations with respect to the exercise of the Option or the
sale of the shares of Common Stock covered thereby. 
 (b) The medium of payment for exercising the Option may be one or a combination of the
following: (i) cash or check payable in clearinghouse funds to the order of the Company; (ii) by delivery to the Company of other shares of Common Stock which, unless otherwise determined by the Committee (as defined in the Plan), have
been held for more than six (6) months; (iii) by a “net exercise” arrangement (as described in the Plan); or (iv) any other form of legal consideration that may be acceptable to the Committee. If the Company determines that
any federal, state, local or foreign tax or withholding payment is required relating to the exercise of the Option or the sale of the shares of Common Stock covered thereby, then before the transfer of shares to the Optionee the Company shall have
the right to require such payments from the Optionee or withhold such amounts from other payments due to the Company by the Optionee. 
 4.
Rights as a Stockholder. No shares of Common Stock will be issued or delivered pursuant to an exercise of the Option until full payment for such shares has been made. The Optionee shall not be deemed to be, or have any rights as, a
stockholder with respect to any shares covered by the Option until a stock certificate for such shares has been issued to the Optionee. Except as otherwise provided herein, no adjustment shall be made for dividends or distributions or other rights
for which the record date is prior to the date of issuance of such stock certificate. 
 5. Nontransferability of Option. The Option
is not assignable or transferable except by will or by the applicable laws of descent and distribution. The Option is exercisable during the Optionee’s lifetime only by the Optionee. Notwithstanding the foregoing, the Optionee may, by
delivering written notice to the Company in form satisfactory to the Company, designate a third party who, in the event of the Optionee’s death, shall thereafter be entitled to exercise the Option. 
 6. Termination of Employment. (a) If the Optionee’s Continuous Service with the Company or any Subsidiary (as defined in the Plan)
terminates by reason of the Optionee’s retirement or Disability (as defined in the Plan), then, unless sooner terminated under the terms hereof or pursuant to the Plan, the Option will terminate on the date three (3) months after the date
of the Optionee’s termination of Continuous Service; provided, however, that if the Optionee dies within such three-month period, any unexercised Option, to the extent to which it was exercisable at the time of the Optionee’s
death, shall thereafter be exercisable for a period not exceeding fifteen (15) months from the date of the Optionee’s death. If the Optionee’s Continuous Service with the Company terminates by reason of the Optionee’s death,
then, unless sooner terminated under the terms hereof or pursuant to the Plan, the Option will terminate on the date fifteen (15) months from the date of the Optionee’s death. If the Optionee’s Continuous Service with the Company
terminates for any reason other than death, Disability or retirement, the Option will terminate on the termination date of the Optionee’s Continuous Service with the Company.  

 (b) Notwithstanding the foregoing, if an Optionee’s employment terminates by death, Disability or
retirement after the first anniversary date of the date hereof and prior to an installment of the Option (other than the first installment) becoming exercisable and if there are no conditions to the next succeeding installment becoming exercisable
other than the passage of time, the Option shall become exercisable with respect to the number of shares calculated pursuant to Section 7(f)(ii) of the Plan. 
 7. Plan Provisions Control. This Agreement is subject to the terms and conditions of the Plan, which are incorporated herein by reference. The provisions of the Plan shall govern if and to the extent that there
are inconsistencies between the provisions of the Plan and the provisions of this Agreement. The Optionee acknowledges that the Optionee has received a copy of the Plan prior to the execution of this Agreement. 
 8. No Rights Conferred. Nothing in this Agreement shall give the Optionee any right to continue in the employ or service of the Company or any
Subsidiary and/or as a member of the Company’s Board of Directors or in any other capacity, or interfere in any way with the right of the Company or any Subsidiary to terminate the employment or services of the Optionee. 
 9. Change of Control; Adjustments. The provisions of Section 8 of the Plan shall govern upon the consummation of a Change of Control (as
defined in the Plan). All references to the number and class of shares covered by this Agreement, the exercise price per share of the Option, and other terms in this Agreement may be appropriately adjusted, in the discretion of the Committee, in the
event of certain changes in capitalization, as set forth in Section 9 of the Plan. 
 10. Securities Law and Other Requirements.
Exercise of the Option is subject to compliance with applicable securities and other laws, rules and regulations, including without limitation as set forth in Section 7(c) of the Plan, and the Company may defer exercise of the Option to ensure
compliance with such laws, rules and regulations. 
 11. Compliance with Section 409A of the Code. The Optionee hereby
consents (without further consideration) to any change to the Option or this Agreement so the Optionee can avoid paying penalties under Section 409A of the Code, even if those changes affect the terms and conditions of the Option and reduce its
value or potential value. 
 12. Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of the
parties hereto and their respective heirs, executors, administrators, successors and permitted assigns. This Agreement may not be assigned or transferred in whole or in part except as provided in the Plan. 
 13. Interpretation of this Agreement. All determinations and interpretations made by the Committee with regard to any questions arising under the
Plan or this Agreement shall be final, binding and conclusive as to all persons, including without limitation the Optionee and any person claiming rights from or through the Optionee. 

 14. Venue. Each party to this Agreement hereby irrevocably (i) consents and submits to the
exclusive jurisdiction of the state and federal courts in Fairfield County, Connecticut in connection with any disputes arising out of this Agreement, and (ii) waives any objection based on venue or inconvenient forum with respect to any action
instituted therein arising under this Agreement or the transactions contemplated hereby, and agrees that any dispute with respect to such matters shall be heard only in the courts described above. 
 15. Governing Law; Entire Agreement. This Agreement shall be governed by and construed in accordance with the laws of the State of Connecticut,
without regard to such state’s conflict of laws principles. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior understandings and agreements, written or oral,
of the parties hereto with respect to the subject matter hereof. This Agreement may be amended by the Committee, subject to the Optionee’s consent if such amendment is not favorable to the Optionee, except that the consent of the Optionee shall
not be required for any amendment made pursuant to Section 7(f)(i)(F), Section 8 or Section 9 of the Plan, or as set forth in Section 12 of this Agreement. 
 IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first written above. 
  

			
	BOLT TECHNOLOGY CORPORATION
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	OPTIONEE
	
	  

 BOLT TECHNOLOGY CORPORATION 
 NON-EMPLOYEE DIRECTOR NONQUALIFIED STOCK OPTION AGREEMENT 
 AGREEMENT made as of
                    , 200    , by and between Bolt Technology Corporation, a Connecticut corporation (the
“Company”), and
                                        
(the “Optionee”). 
 Pursuant to the Bolt Technology Corporation 2006 Stock Option Plan (as it may be further amended from
time to time, the “Plan”), the Company desires to grant to the Optionee, and the Optionee desires to accept from the Company, an option to purchase shares of the common stock of the Company, without par value (the “Common
Stock”), upon the terms and conditions set forth in this Agreement. 
 NOW, THEREFORE, the Company and the Optionee agree as
follows: 
 1. Grant of Option; Option Price. The Company hereby grants to the Optionee an option to purchase [3,000 / 5,000] shares of
Common Stock at a purchase price per share of $             (the “Option”). The Option is intended to be treated as an option that is not an incentive stock
option within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”). The purchase price is not less than the fair market value of the Common Stock on the date of grant. 
 There are potential tax consequences associated with the grant, vesting and exercise of this Option. It is the responsibility of the Optionee to seek
independent tax advice with regard to the tax treatment of the Option, the exercise thereof, the disposition of any Common Stock acquired upon exercise of the Option and any other related matters. 
 2. Entitlement to Exercise Option; Term of Option. The Option shall not be exercisable during the year ending on the first anniversary date of the
date hereof and then only with respect to the vested portion of the Option. Subject to the preceding sentence and the terms of this Agreement and the Plan, the Option shall only become exercisable in accordance with the following vesting schedule
based upon the number of full years of the Optionee’s Continuous Service (as defined in the Plan) as a director of the Company following the date of grant: 
  

			
	 Vesting Date
	  	Number of Shares Vesting
	 First anniversary date of the date hereof
	  	[750 /1,250]
	 Second anniversary date of the date hereof
	  	[750 /1,250]
	 Third anniversary date of the date hereof
	  	[750 /1,250]
	 Forth anniversary date of the date hereof
	  	[750 /1,250]

 Unless sooner terminated pursuant to the terms of this Agreement, the Option will expire if and to the extent it
is not exercised on or before the fifth anniversary from the date hereof. 

 3. Exercise of Option; Medium of Payment. (a) Subject to the requirements of Section 2,
the vested portion of the Option may be exercised in whole at any time or in part from time to time during the term of the Option. To exercise the Option, the Optionee shall deliver to the Chief Executive Officer of the Company: (i) a written
notice specifying the number of shares of Common Stock to be purchased, and (ii) payment in full of the exercise price, together with the amount, if any, deemed necessary by the Company to enable it to satisfy any income tax withholding
obligations with respect to the exercise of the Option or the sale of the shares of Common Stock covered thereby. 
 (b) The medium of
payment for exercising the Option may be one or a combination of the following: (i) cash or check payable in clearinghouse funds to the order of the Company; (ii) by delivery to the Company of other shares of Common Stock which, unless
otherwise determined by the Committee (as defined in the Plan), have been held for more than six (6) months; (iii) by a “net exercise” arrangement (as described in the Plan); or (iv) any other form of legal consideration
that may be acceptable to the Committee. If the Company determines that any federal, state, local or foreign tax or withholding payment is required relating to the exercise of the Option or the sale of the shares of Common Stock covered thereby,
then before the transfer of shares to the Optionee the Company shall have the right to require such payments from the Optionee or withhold such amounts from other payments due to the Company by the Optionee. 
 4. Rights as a Stockholder. No shares of Common Stock will be issued or delivered pursuant to an exercise of the Option until full payment for
such shares has been made. The Optionee shall not be deemed to be, or have any rights as, a stockholder with respect to any shares covered by the Option until a stock certificate for such shares has been issued to the Optionee. Except as otherwise
provided herein, no adjustment shall be made for dividends or distributions or other rights for which the record date is prior to the date of issuance of such stock certificate. 
 5. Nontransferability of Option. The Option is not assignable or transferable except by will or by the applicable laws of descent and
distribution. The Option is exercisable during the Optionee’s lifetime only by the Optionee. Notwithstanding the foregoing, the Optionee may, by delivering written notice to the Company in form satisfactory to the Company, designate a third
party who, in the event of the Optionee’s death, shall thereafter be entitled to exercise the Option. 
 6. Termination of Service as
Director. If the Optionee’s Continuous Service with the Company or any Subsidiary (as defined in the Plan) terminates by reason other than death, then, unless sooner terminated under the terms hereof or pursuant to the Plan, the Option will
terminate on the date thirty (30) days after the date of the Optionee’s termination of Continuous Service; provided, however, that if the Optionee dies within such thirty-day period, any unexercised Option, to the extent to
which it was exercisable at the time of the Optionee’s death, shall thereafter be exercisable for a period not exceeding fifteen (15) months from the date of the Optionee’s death. If the Optionee’s Continuous Service with the
Company terminates by reason of the Optionee’s death, then, unless sooner terminated under the terms hereof or pursuant to the Plan, the Option will terminate on the date fifteen (15) months from the date of the Optionee’s death.

 7. Plan Provisions Control. This Agreement is subject to the terms and conditions of the Plan,
which are incorporated herein by reference. The provisions of the Plan shall govern if and to the extent that there are inconsistencies between the provisions of the Plan and the provisions of this Agreement. The Optionee acknowledges that the
Optionee has received a copy of the Plan prior to the execution of this Agreement. 
 8. No Rights Conferred. Nothing in this
Agreement shall give the Optionee any right to continue in the service of the Company or any Subsidiary and/or as a member of the Company’s Board of Directors or in any other capacity, or interfere in any way with the right of the Company or
any Subsidiary to terminate the services of the Optionee. 
 9. Change of Control; Adjustments. The provisions of Section 8 of
the Plan shall govern upon the consummation of a Change of Control (as defined in the Plan). All references to the number and class of shares covered by this Agreement, the exercise price per share of the Option, and other terms in this Agreement
may be appropriately adjusted, in the discretion of the Committee, in the event of certain changes in capitalization, as set forth in Section 9 of the Plan. 
 10. Securities Law and Other Requirements. Exercise of the Option is subject to compliance with applicable securities and other laws, rules and regulations, including without limitation as set forth in
Section 7(c) of the Plan, and the Company may defer exercise of the Option to ensure compliance with such laws, rules and regulations. 
 11. Compliance with Section 409A of the Code. The Optionee hereby consents (without further consideration) to any change to the Option or this Agreement so the Optionee can avoid paying penalties under Section 409A
of the Code, even if those changes affect the terms and conditions of the Option and reduce its value or potential value. 
 12.
Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and permitted assigns. This Agreement may not be assigned or
transferred in whole or in part except as provided in the Plan. 
 13. Interpretation of this Agreement. All determinations and
interpretations made by the Committee with regard to any questions arising under the Plan or this Agreement shall be final, binding and conclusive as to all persons, including without limitation the Optionee and any person claiming rights from or
through the Optionee. 
 14. Venue. Each party to this Agreement hereby irrevocably (i) consents and submits to the exclusive
jurisdiction of the state and federal courts in Fairfield County, Connecticut in connection with any disputes arising out of this Agreement, and (ii) waives any objection based on venue or inconvenient forum with respect to any action
instituted therein arising under this Agreement or the transactions contemplated hereby, and agrees that any dispute with respect to such matters shall be heard only in the courts described above. 

 15. Governing Law; Entire Agreement. This Agreement shall be governed by and construed in
accordance with the laws of the State of Connecticut, without regard to such state’s conflict of laws principles. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all
prior understandings and agreements, written or oral, of the parties hereto with respect to the subject matter hereof. This Agreement may be amended by the Committee, subject to the Optionee’s consent if such amendment is not favorable to the
Optionee, except that the consent of the Optionee shall not be required for any amendment made pursuant to Section 7(f)(i)(F), Section 8 or Section 9 of the Plan, or as set forth in Section 12 of this Agreement. 
 IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first written above. 
  

			
	BOLT TECHNOLOGY CORPORATION
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	OPTIONEE

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