Document:

2003 Omnibus Equity Incentive Plan

 Exhibit 10.4 
 CENTRAL GARDEN & PET COMPANY 
 2003 OMNIBUS EQUITY INCENTIVE PLAN 
 (As Amended Effective December 10, 2008) 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
			
	 SECTION 1
	  		  	1
			
	 1.1
	  	Background and Effective Date	  	1
			
	 1.2
	  	Purpose of the Plan	  	1
			
	 1.3
	  	Duration of the Plan	  	1
			
	 SECTION 2
	  	DEFINITIONS	  	1
			
	 2.1
	  	“1934 Act”	  	1
			
	 2.2
	  	“Affiliate”	  	2
			
	 2.3
	  	“Affiliated SAR”	  	2
			
	 2.4
	  	“Award”	  	2
			
	 2.5
	  	“Award Agreement”	  	2
			
	 2.6
	  	“Board” or “Board of Directors”	  	2
			
	 2.7
	  	“Code”	  	2
			
	 2.8
	  	“Committee”	  	2
			
	 2.9
	  	“Company”	  	2
			
	 2.10
	  	“Consultant”	  	2
			
	 2.11
	  	“Director”	  	2
			
	 2.12
	  	“Disability”	  	2
			
	 2.13
	  	“Employee”	  	2
			
	 2.14
	  	“ERISA”	  	2
			
	 2.15
	  	“Fair Market Value”	  	3
			
	 2.16
	  	“Freestanding SAR”	  	3
			
	 2.17
	  	“Incentive Stock Option” or “ISO”	  	3
			
	 2.18
	  	“Nonqualified Stock Option”	  	3
			
	 2.19
	  	“Option”	  	3
			
	 2.20
	  	“Option Price”	  	3
			
	 2.21
	  	“Participant”	  	3
			
	 2.22
	  	“Performance Unit”	  	3
			
	 2.23
	  	“Performance Share”	  	3
			
	 2.24
	  	“Period of Restriction”	  	3
			
	 2.25
	  	“Plan”	  	3
			
	 2.26
	  	“Restricted Stock”	  	3

  

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 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
			
	 2.27
	  	“Retirement”	  	3
			
	 2.28
	  	“Rule 16b-3”	  	4
			
	 2.29
	  	“Section 16 Person”	  	4
			
	 2.30
	  	“Shares”	  	4
			
	 2.31
	  	“Stock Appreciation Right” or “SAR”	  	4
			
	 2.32
	  	“Subsidiary”	  	4
			
	 2.33
	  	“Tandem SAR”	  	4
			
	 2.34
	  	“Termination of Employment”	  	4
			
	 SECTION 3
	  	ADMINISTRATION	  	4
			
	 3.1
	  	The Committee	  	4
			
	 3.2
	  	Authority of the Committee	  	4
			
	 3.3
	  	Decisions Binding	  	5
			
	 SECTION 4
	  	SHARES SUBJECT TO THE PLAN	  	5
			
	 4.1
	  	Number of Shares	  	5
			
	 4.2
	  	Lapsed Awards	  	6
			
	 4.3
	  	Adjustments in Authorized Shares	  	6
			
	 SECTION 5
	  	STOCK OPTIONS	  	7
			
	 5.1
	  	Grant of Options	  	7
			
	 5.2
	  	Award Agreement	  	7
			
	 5.3
	  	Option Price	  	7
			
	 5.4
	  	Expiration of Options	  	7
			
	 5.5
	  	Exercise of Options	  	8
			
	 5.6
	  	Payment	  	8
			
	 5.7
	  	Restrictions on Share Transferability	  	9
			
	 5.8
	  	Certain Additional Provisions for Incentive Stock Options	  	9
			
	 5.9
	  	Nontransferability of Options	  	10
			
	 SECTION 6
	  	STOCK APPRECIATION RIGHTS	  	10
			
	 6.1
	  	Grant of SARs	  	10
			
	 6.2
	  	Exercise of Tandem SARs	  	10
			
	 6.3
	  	Exercise of Affiliated SARs	  	10
			
	 6.4
	  	Exercise of Freestanding SARs	  	10

  

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 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
			
	 6.5
	  	SAR Agreement	  	11
			
	 6.6
	  	Expiration of SARs	  	11
			
	 6.7
	  	Payment of SAR Amount	  	11
			
	 6.8
	  	Nontransferability of SARs	  	11
			
	 SECTION 7
	  	RESTRICTED STOCK	  	11
			
	 7.1
	  	Grant of Restricted Stock	  	11
			
	 7.2
	  	Restricted Stock Agreement	  	11
			
	 7.3
	  	Transferability	  	11
			
	 7.4
	  	Other Restrictions	  	12
			
	 7.5
	  	Removal of Restrictions	  	12
			
	 7.6
	  	Voting Rights	  	12
			
	 7.7
	  	Dividends and Other Distributions	  	12
			
	 7.8
	  	Return of Restricted Stock to Company	  	12
			
	 SECTION 8
	  	PERFORMANCE UNITS AND PERFORMANCE SHARES	  	12
			
	 8.1
	  	Grant of Performance Units/Shares	  	12
			
	 8.2
	  	Value of Performance Units/Shares	  	13
			
	 8.3
	  	Earning of Performance Units/Shares	  	13
			
	 8.4
	  	Form and Timing of Payment of Performance Units/Shares	  	13
			
	 8.5
	  	Cancellation of Performance Units/Shares	  	13
			
	 8.6
	  	Nontransferability	  	13
			
	 SECTION 9
	  	BENEFICIARY DESIGNATION	  	13
			
	 SECTION 10
	  	DEFERRALS	  	14
			
	 SECTION 11
	  	RIGHTS OF EMPLOYEES AND CONSULTANTS	  	14
			
	 11.1
	  	No Effect on Employment or Service	  	14
			
	 11.2
	  	Participation	  	14
			
	 SECTION 12
	  	AMENDMENT, SUSPENSION, OR TERMINATION	  	14
			
	 12.1
	  	Amendment, Suspension, or Termination	  	14
			
	 SECTION 13
	  	TAX WITHHOLDING	  	14
			
	 13.1
	  	Withholding Requirements	  	14
			
	 13.2
	  	Shares Withholding	  	14
			
	 SECTION 14
	  	INDEMNIFICATION	  	15

  

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 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
			
	 SECTION 15
	  	SUCCESSORS	  	15
			
	 SECTION 16
	  	LEGAL CONSTRUCTION	  	15
			
	 16.1
	  	Gender and Number	  	15
			
	 16.2
	  	Severability	  	15
			
	 16.3
	  	Requirements of Law	  	15
			
	 16.4
	  	Securities Law Compliance	  	15
			
	 16.5
	  	Governing Law	  	16
			
	 16.6
	  	Captions	  	16

  

 iv 

 CENTRAL GARDEN & PET COMPANY 
 2003 OMNIBUS EQUITY INCENTIVE PLAN 
 (As Amended Effective December 10,
2008) 
 CENTRAL GARDEN & PET COMPANY, hereby adopts the Central Garden & Pet Company 2003 Omnibus Equity Incentive
Plan, effective as of December 4, 2002, and as amended on February 7, 2005, December 14, 2005, February 5, 2007 and December 10, 2008 as follows: 
 SECTION 1 
 BACKGROUND, PURPOSE AND DURATION 
 1.1 Background and Effective Date. The Plan provides for the granting of Nonqualified Stock Options, Incentive Stock Options, SARs, Restricted
Stock, Performance Units, and Performance Shares. The Plan was originally approved effective as of December 4, 2002. The Plan, as amended to date, is effective as of December 10, 2008, subject to approval of the December 10, 2008
amendment by an affirmative vote, at the next meeting of the stockholders of the Company, or any adjournment thereof, of the holders of a majority of the outstanding shares of the Common Stock and Class B Stock, voting together as a class, of
the Company, present in person or by proxy and entitled to vote at such meeting. Awards may be granted prior to the receipt of such vote, but such grants shall be null and void if such vote is not in fact received. 
 1.2 Purpose of the Plan. The purpose of the Plan is to promote the success, and enhance the value, of the Company by aligning the interests of
Participants with those of the Company’s shareholders, and by providing Participants with an incentive for outstanding performance. 
 The Plan is further intended to provide flexibility to the Company in its ability to motivate, attract, and retain the services of outstanding individuals, upon whose judgment, interest, and special effort the success of the Company largely
is dependent. 
 1.3 Duration of the Plan. The Plan shall commence on the date specified in Section 1.1, and subject to
Section 12 (concerning the Board’s right to amend or terminate the Plan), shall remain in effect thereafter. However, without further stockholder approval, no Incentive Stock Option may be granted under the Plan on or after
December 3, 2012. 
 SECTION 2 
 DEFINITIONS 
 The following words and phrases shall have the following meanings unless a different meaning is plainly required by
the context: 
 2.1 “1934 Act” means the Securities Exchange Act of 1934, as amended. Reference to a specific section of the
Exchange Act or regulation thereunder shall include such section or regulation, any valid regulation promulgated under such section, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such
section or regulation. 

 2.2 “Affiliate” means any corporation or any other entity (including, but not limited
to, partnerships and joint ventures) controlling, controlled by, or under common control with the Company. 
 2.3 “Affiliated
SAR” means an SAR that is granted in connection with a related Option, and which automatically will be deemed to be exercised at the same time that the related Option is exercised. 
 2.4 “Award” means, individually or collectively, a grant under the Plan of Nonqualified Stock Options, Incentive Stock Options, SARs,
Restricted Stock, Performance Units, or Performance Shares. 
 2.5 “Award Agreement” means the written agreement setting
forth the terms and provisions applicable to each Award granted under the Plan. 
 2.6 “Board” or “Board of
Directors” means the Board of Directors of the Company. 
 2.7 “Code” means the Internal Revenue Code of 1986, as
amended. Reference to a specific section of the Code or regulation thereunder shall include such section or regulation, any valid regulation promulgated under such section, and any comparable provision of any future legislation or regulation
amending, supplementing or superseding such section or regulation. 
 2.8 “Committee” means the committee appointed by the
Board (pursuant to Section 3.1) to administer the Plan. 
 2.9 “Company” means Central Garden & Pet Company, a
Delaware corporation, or any successor thereto. 
 2.10 “Consultant” means an individual who provides significant services
to the Company and/or an Affiliate, including a Director who is not an Employee. 
 2.11 “Director” means any individual who
is a member of the Board of Directors of the Company. 
 2.12 “Disability” means a permanent and total disability within the
meaning of Code Section 22(e)(3). 
 2.13 “Employee” means an employee of the Company or of an Affiliate, whether such
employee is so employed at the time the Plan is adopted or becomes so employed subsequent to the adoption of the Plan. 
 2.14
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended. Reference to a specific section of ERISA shall include such section, any valid regulation promulgated thereunder, and any comparable provision of any
future legislation amending, supplementing or superseding such section. 
  

 2 

 2.15 “Fair Market Value” means the average of the highest and lowest quoted selling
prices or the closing share price for Shares on the relevant date, or if there were no sales on such date, the arithmetic mean of the highest and lowest quoted selling prices on the nearest day before and the nearest day after the relevant date, as
determined by the Committee. If the class of Shares is not quoted on a national exchange, “Fair Market Value” means, as of any date, the per share fair market value of the Shares, as determined by the Committee in good faith on such basis
as it deems appropriate and applied consistently with respect to Participants. 
 2.16 “Freestanding SAR” means a SAR that
is granted independently of any Option. 
 2.17 “Incentive Stock Option” or “ISO” means an option to
purchase Shares, which is designated as an Incentive Stock Option and is intended to meet the requirements of Section 422 of the Code. 
 2.18 “Nonqualified Stock Option” means an option to purchase Shares which is not intended to be an Incentive Stock Option. 
 2.19 “Option” means an Incentive Stock Option or a Nonqualified Stock Option. 
 2.20
“Option Price” means the price at which a Share may be purchased pursuant to an Option. 
 2.21
“Participant” means an Employee or Consultant who has an outstanding Award. 
 2.22 “Performance Unit”
means an Award granted to an Employee pursuant to Section 8. 
 2.23 “Performance Share” means an Award granted to an
Employee pursuant to Section 8. 
 2.24 “Period of Restriction” means the period during which the transfer of Shares of
Restricted Stock are subject to restrictions. 
 2.25 “Plan” means the Central Garden & Pet Company 2003 Omnibus
Equity Incentive Plan, as set forth in this instrument and as hereafter amended from time to time. 
 2.26 “Restricted
Stock” means an Award granted to a Participant pursuant to Section 7. 
 2.27 “Retirement” means, in the case
of an Employee, a Termination of Employment by reason of the Employee’s retirement at or after age 62. 
  

 3 

 2.28 “Rule 16b-3” means Rule 16b-3 promulgated under the 1934 Act, and any future
regulation amending, supplementing or superseding such regulation. 
 2.29 “Section 16 Person” means a person who, with
respect to the Shares, is subject to Section 16 of the 1934 Act. 
 2.30 “Shares” means (i) the shares of common
stock, $0.01 par value, of the Company (“Common Stock”), (ii) the shares of Class A common stock, $0.01 par value, of the Company (“Class A Common Stock”) or (iii) shares of preferred stock, $0.01 par value, with
such rights, privileges, restrictions and preferences as the Board of Directors may authorize from time to time (“Preferred Stock”). 
 2.31 “Stock Appreciation Right” or “SAR” means an Award, granted alone or in connection with a related Option, that pursuant to the terms of Section 7 is designated as an SAR. 
 2.32 “Subsidiary” means any “subsidiary corporation” (other than the Company) as defined in Code Section 424(f).

 2.33 “Tandem SAR” means an SAR that is granted in connection with a related Option, the exercise of which shall require
forfeiture of the right to purchase an equal number of Shares under the related Option (and when a Share is purchased under the Option, the SAR shall be canceled to the same extent). 
 2.34 “Termination of Employment” means a cessation of the employee-employer or director or other service arrangement relationship
between an Employee, Consultant or Director and the Company or an Affiliate for any reason, including, but not by way of limitation, a termination by resignation, discharge, death, Disability, Retirement, or the disaffiliation of an Affiliate, but
excluding any such termination where there is a simultaneous reemployment or re-engagement by the Company or an Affiliate. 
 SECTION 3

 ADMINISTRATION 
 3.1 The
Committee. The Plan shall be administered by the Committee. The Committee shall consist of not less than two (2) Directors. The members of the Committee shall be appointed from time to time by, and shall serve at the pleasure of, the Board
of Directors. The Committee shall be comprised solely of Directors who are “outside directors” under Rule 16b-3. 
 3.2
Authority of the Committee. The Committee shall have all powers and discretion necessary or appropriate to administer the Plan and to control its operation, including, but not limited to, the power (a) to determine which Employees and
Consultants shall be granted Awards, (b) to prescribe the terms and conditions of such Awards, (c) to interpret the Plan and the Awards, (d) to adopt rules for the administration, interpretation and application of the Plan as are
consistent therewith, and (e) to interpret, amend or revoke any such rules. 
  

 4 

 The Committee, in its sole discretion and on such terms and conditions as it may provide, may delegate
all or any part of its authority and powers under the Plan to one or more directors and/or officers of the Company; provided, however, that the Committee may not delegate its authority and powers with respect to Section 16 Persons. 

3.3 Decisions Binding. All determinations and decisions made by the Committee shall be final, conclusive, and binding on all persons, and shall
be given the maximum deference permitted by law. 
 SECTION 4 
 SHARES SUBJECT TO THE PLAN 
 4.1 Number of Shares. Subject to adjustment as provided in
Section 4.3, the total number of Shares available for grant under the Plan may not exceed 21,034,982, consisting of (i) a maximum of 5,800,000 shares of Common Stock of the Company, (ii) a maximum of 14,734,982 shares of Class A
Common Stock of the Company, and (iii) a maximum of 500,000 shares of Preferred Stock of the Company. Such Shares may be authorized but unissued Shares or Treasury Shares. No Participant may receive Options or SARs for more than 1,500,000
shares under the Plan in a calendar year. 
 The following rules will apply for purposes of the determination of the number of Shares
available for grant under the Plan: 
  

	 	(a)	While an Award is outstanding, it shall be counted against the authorized pool of Shares, regardless of its vested status. 

  

	 	(b)	The grant of an Option or Restricted Stock shall reduce the Shares available for grant under the Plan by the number of Shares subject to such Award. 

  

	 	(c)	The grant of a Tandem SAR shall reduce the number of Shares available for grant by the number of Shares subject to the related Option (i.e., there is no double counting of Options
and their related Tandem SARs); provided, however, that, upon the exercise of such Tandem SAR, the authorized Share pool shall be credited with the appropriate number of Shares representing the number of shares reserved for such Tandem SAR less the
number of Shares actually delivered upon exercise thereof or the number of Shares having a Fair Market Value equal to the cash payment made upon such exercise. 

  

	 	(d)	The grant of an Affiliated SAR shall reduce the number of Shares available for grant by the number of Shares subject to the SAR, in addition to the number of Shares subject to the
related Option; provided, however, that, upon the exercise of such Affiliated SAR, the authorized Share pool shall be credited with the appropriate number of Shares representing the number of shares reserved for such Affiliated SAR less the number
of Shares actually delivered upon exercise thereof or the number of Shares having a Fair Market Value equal to the cash payment made upon such exercise. 

  

 5 

	 	(e)	The grant of a Freestanding SAR shall reduce the number of Shares available for grant by the number of Freestanding SARs granted; provided, however, that, upon the exercise of such
Freestanding SAR, the authorized Share pool shall be credited with the appropriate number of Shares representing the number of shares reserved for such Freestanding SAR less the number of Shares actually delivered upon exercise thereof or the number
of Shares having a Fair Market Value equal to the cash payment made upon such exercise. 

  

	 	(f)	The Committee shall in each case determine the appropriate number of Shares to deduct from the authorized pool in connection with the grant of Performance Units and/or Performance
Shares. 

  

	 	(g)	To the extent that an Award is settled in cash rather than in Shares, the authorized Share pool shall be credited with the appropriate number of Shares having a Fair Market Value
equal to the cash settlement of the Award. 

  

	 	(h)	The grant of an Award for Preferred Stock shall reduce the number of shares of Common Stock or Class A Common Stock available for grant by the number of shares, if any, of
Common Stock or Class A Common Stock, issuable upon conversion of the Preferred Stock; provided, however, that upon conversion of such Preferred Stock, the authorized Share pool shall be credited with the appropriate number of shares of
Preferred Stock. 

 4.2 Lapsed Awards. If an Award is cancelled, terminates, expires, or lapses for any reason (with the
exception of the termination of a Tandem SAR upon exercise of the related Option, or the termination of a related Option upon exercise of the corresponding Tandem SAR), any Shares subject to such Award again shall be available to be the subject of
an Award. 
 4.3 Adjustments in Authorized Shares. In the event of any merger, reorganization, consolidation, recapitalization,
separation, liquidation, stock dividend, split-up, Share combination, or other change in the corporate structure of the Company affecting the Shares, such adjustment shall be made in the number and class of Shares which may be delivered under the
Plan, and in the number and class of and/or price of Shares subject to outstanding Options, SARs, and Restricted Stock granted under the Plan, as the Committee, in its sole discretion, shall determine to be appropriate to prevent the dilution or
diminishment of Awards. Notwithstanding the preceding sentence, the number of Shares subject to any Award always shall be a whole number. 
  

 6 

 SECTION 5 
 STOCK OPTIONS 
 5.1 Grant of Options. Options may be granted to Employees and Consultants at any time
and from time to time, as determined by the Committee in its sole discretion. The Committee, in its sole discretion, shall determine the number and class of Shares subject to Options granted to each Participant. The Committee may grant ISOs, NQSOs,
or a combination thereof. 
 5.2 Award Agreement. Each Option shall be evidenced by an Award Agreement that shall specify the Option
Price, the expiration date of the Option, the number and class of Shares to which the Option pertains, any conditions to exercise of the Option, and such other terms and conditions as the Committee, in its discretion, shall determine. The Award
Agreement also shall specify whether the Option is intended to be an ISO or a NQSO. 
 5.3 Option Price. Subject to the provisions of
this Section 5.3, the Option Price for each Option shall be determined by the Committee in its sole discretion. 
 5.3.1
Nonqualified Stock Options. In the case of a Nonqualified Stock Option, the Option Price shall be not less than one hundred percent (100%) of the Fair Market Value of a Share on the date that the Option is granted. 
 5.3.2 Incentive Stock Options. In the case of an Incentive Stock Option, the Option Price shall be not less than one hundred
percent (100%) of the Fair Market Value of a Share on the date that the Option is granted; provided, however, that if at the time that the Option is granted, the Employee (together with persons whose stock ownership is attributed to the
Employee pursuant to Section 424(d) of the Code) owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or any of its Subsidiaries, the Option Price shall be not less than one hundred and
ten percent (110%) of the Fair Market Value of a Share on the date that the Option is granted. 
 5.3.3 Substitute
Options. Notwithstanding the provisions of Sections 5.3.1 and 5.3.2, in the event that the Company or an Affiliate consummates a transaction described in Section 424(a) of the Code (e.g., the acquisition of property or stock from an
unrelated corporation), persons who become Employees or Consultants on account of such transaction may be granted Options in substitution for options granted by their former employer. If such substitute Options are granted, the Committee, in its
sole discretion, may determine that such substitute Options shall have an exercise price less than 100% of the Fair Market Value of the Shares on the date the Option is granted. 
 5.4 Expiration of Options. Unless the applicable stock option agreement provides otherwise, each Option shall terminate upon the first to occur of
the events listed in Section 5.4.1, subject to Section 5.4.2. 
 5.4.1 Expiration Dates. 
  

	 	(a)	The date for termination of the Option set forth in the written stock option agreement; 

  

 7 

	 	(b)	The expiration of ten years from the date the Option was granted, subject to the provisions of clause (f), below; or 

  

	 	(c)	The expiration of one year from the date of the Optionee’s Termination of Employment for a reason other than the Optionee’s death, Disability or Retirement, subject to the
provisions of clause (f) below; or 

  

	 	(d)	The expiration of three years from the date of the Optionee’s Termination of Employment by reason of Disability, subject to the provisions of clause (f) below; or

  

	 	(e)	The expiration of three years from the date of the Optionee’s Retirement; provided that no Incentive Stock Option may be exercised after the expiration of three months from the
date of the Optionee’s Retirement, subject in each case to the provisions of clause (f) below; or 

  

	 	(f)	The expiration of one year from the date of the Optionee’s death, if such death occurs while the Optionee is in the employ or service of the Company or an Affiliate or within
the one-year or three-year periods referred to in (c), (d) or (e) above, whichever is applicable. 

 5.4.2 Committee Discretion. Subject to the provisions of this Section 5.4, the Committee shall provide, in the terms of each individual Option, when such Option expires and becomes unexercisable. After the Option is granted, the
Committee, in its sole discretion and subject to Section 5.8.4 and this Section 5.4, may extend the maximum term of such Option. 
 5.5 Exercise of Options. Options granted under the Plan shall be exercisable at such times, and subject to such restrictions and conditions, as the Committee shall determine in its sole discretion. After an Option is granted, the
Committee, in its sole discretion, may accelerate the exercisability of the Option. 
 5.6 Payment. Options shall be exercised by the
Participant’s delivery of a written notice of exercise to the Secretary of the Company, setting forth the number and class of Shares with respect to which the Option is to be exercised, accompanied by full payment for the Shares. 
 For Options granted prior to December 14, 2005, the Option Price upon exercise of any Option shall be payable to the Company in full in cash. The
Committee, in its sole discretion and pursuant to such procedures as it may specify from time to time, also may permit (a) a Participant to elect to have the Company withhold Shares having a value equal to the amount required to be withheld or
by delivering to the Company already-owned Shares to satisfy the Option Price, or (b) by any other means which the Committee, in its sole discretion, determines to both provide legal consideration for the Shares, and to be consistent with the
purposes of the Plan. The value of the Shares to be withheld or delivered will be based on their Fair Market Value on the date of exercise. 
  

 8 

 For Options granted on or after December 14, 2005, the Option Price upon exercise of any Option
shall be payable by having the Company withhold Shares having a value equal to the amount required to be withheld or by delivering to the Company already-owned Shares to satisfy the Option Price, pursuant to such procedures as the Committee may
specify from time to time. The Committee, in its sole discretion, also may permit (a) a Participant to pay the Option Price in full in cash, or (b) by any other means which the Committee, in its sole discretion, determines to both provide
legal consideration for the Shares, and to be consistent with the purposes of the Plan. The value of the Shares to be withheld or delivered will be based on their Fair Market Value on the date of exercise. 
 As soon as practicable after receipt of a written notification of exercise and full payment for the Shares purchased, the Company shall deliver to the
Participant Share certificates (in the Participant’s name) representing such Shares. 
 If any shares subject to a Stock Award are not
delivered to a Participant because such shares are withheld for the payment of taxes or the Stock Award is exercised through a reduction of shares subject to the Stock Award (i.e., “net exercised”), the number of shares that are not
delivered to the Participant shall remain available for issuance under the Plan. If the exercise price of any Stock Award is satisfied by tendering shares of Common Stock or Class A Common Stock held by the Participant (either by actual
delivery or attestation), then the number of shares so tendered shall remain available for issuance under the Plan. 
 5.7 Restrictions on
Share Transferability. The Committee may impose such restrictions on any Shares acquired pursuant to the exercise of an Option, as it may deem advisable, including, but not limited to, restrictions related to Federal securities laws, the
requirements of any national securities exchange or system upon which such Shares are then listed and/or traded, and/or any blue sky or state securities laws. 
 5.8 Certain Additional Provisions for Incentive Stock Options. 
 5.8.1
Exercisability. The aggregate Fair Market Value (determined at the time the Option is granted) of the Shares with respect to which Incentive Stock Options are exercisable for the first time by any Employee during any calendar year (under all
plans of the Company and its Subsidiaries) shall not exceed $100,000. 
 5.8.2 Termination of Employment. No Incentive
Stock Option may be exercised more than three months after the Participant’s termination of employment for any reason other than Disability or death, unless (a) the Participant dies during such three-month period, and (b) the Award
Agreement and/or the Committee permits later exercise. No Incentive Stock Option may be exercised more than one year after the Participant’s termination of employment on account of Disability, unless (a) the Participant dies during such
one-year period, and (b) the Award Agreement and/or the Committee permit later exercise. 
 5.8.3 Company and
Subsidiaries Only. Incentive Stock Options may be granted only to persons who are employees of the Company and/or a Subsidiary at the time of grant. 
  

 9 

 5.8.4 Expiration. No Incentive Stock Option may be exercised after the expiration
of 10 years from the date such Option was granted; provided, however, that if the Option is granted to an Employee who, together with persons whose stock ownership is attributed to the Employee pursuant to Section 424(d) of the Code, owns stock
possessing more than 10% of the total combined voting power of all classes of the stock of the Company or any of its Subsidiaries, the Option may not be exercised after the expiration of 5 years from the date that it was granted. 
 5.9 Nontransferability of Options. No Option granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated, other than by will, the laws of descent and distribution, or as provided under Section 9. All Options granted to a Participant under the Plan shall be exercisable during his or her lifetime only by such Participant. 
 SECTION 6 
 STOCK APPRECIATION RIGHTS

 6.1 Grant of SARs. An SAR may be granted to an Employee or Consultant at any time and from time to time as determined by the
Committee, in its sole discretion. The Committee may grant Affiliated SARs, Freestanding SARs, Tandem SARs, or any combination thereof. 
 The Committee shall have complete discretion to determine the number and class of SARs granted to any Participant, and consistent with the provisions of the Plan, the terms and conditions pertaining to such SARs. However, the grant price of
a Freestanding SAR shall be at least equal to the Fair Market Value of a Share of Common Stock or Class A Common Stock, as the case may be, on the date of grant. The grant price of Tandem or Affiliated SARs shall equal the Option Price of the
related Option. 
 6.2 Exercise of Tandem SARs. Tandem SARs may be exercised for all or part of the Shares subject to the related
Option upon the surrender of the right to exercise the equivalent portion of the related Option. A Tandem SAR may be exercised only with respect to the Shares for which its related Option is then exercisable. 
 6.2.1 ISOs. Notwithstanding any contrary provision of the Plan, with respect to a Tandem SAR granted in connection with an ISO:
(i) the Tandem SAR shall expire no later than the expiration of the underlying ISO; (ii) the value of the payout with respect to the Tandem SAR shall be for no more than one hundred percent (100%) of the difference between the Option
Price of the underlying ISO and the Fair Market Value of the Shares subject to the underlying ISO at the time the Tandem SAR is exercised; and (iii) the Tandem SAR shall be exercisable only when the Fair Market Value of the Shares subject to
the ISO exceeds the Option Price of the ISO. 
 6.3 Exercise of Affiliated SARs. An Affiliated SAR shall be deemed to be exercised
upon the exercise of the related Option. The deemed exercise of an Affiliated SAR shall not necessitate a reduction in the number of Shares subject to the related Option. 
 6.4 Exercise of Freestanding SARs. Freestanding SARs shall be exercisable on such terms and conditions as the Committee, in its sole discretion, shall determine. 
  

 10 

 6.5 SAR Agreement. Each SAR shall be evidenced by an Award Agreement that shall specify the grant
price, the term of the SAR, the conditions of exercise, and such other terms and conditions as the Committee, in its sole discretion, shall determine. 
 6.6 Expiration of SARs. An SAR granted under the Plan shall expire upon the date determined by the Committee, in its sole discretion, and set forth in the Award Agreement. Notwithstanding the foregoing, the
rules of Section 5.4 (pertaining to Options) also shall apply to SARs. 
 6.7 Payment of SAR Amount. Upon exercise of an SAR, a
Participant shall be entitled to receive payment from the Company in an amount determined by multiplying: 
  

	 	(a)	The difference between the Fair Market Value of a Share of Common Stock or Class A Common Stock, as the case may be, on the date of exercise over the grant price; times

  

	 	(b)	The number of Shares with respect to which the SAR is exercised. 

 At the discretion of the Committee, the payment upon SAR exercise may be in cash, in Shares of equivalent value, or in some combination thereof. 
 6.8 Nontransferability of SARs. No SAR granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will, the laws of descent and distribution, or as
permitted under Section 9. An SAR granted to a Participant shall be exercisable during the Participant’s lifetime only by such Participant. 
 SECTION 7 
 RESTRICTED STOCK 
 7.1 Grant of Restricted Stock. Subject to the terms and provisions of the Plan, the Committee, at any time and from time to time, may grant Shares of Restricted Stock to Employees and Consultants in such
amounts and class as the Committee, in its sole discretion, shall determine. 
 7.2 Restricted Stock Agreement. Each Award of
Restricted Stock shall be evidenced by an Award Agreement that shall specify the Period of Restriction, the number and class of Shares granted, and such other terms and conditions as the Committee, in its sole discretion, shall determine. Unless the
Committee determines otherwise, shares of Restricted Stock shall be held by the Company as escrow agent until the restrictions on such shares have lapsed. 
 7.3 Transferability. Except as provided in this Section 7, Shares of Restricted Stock may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until the end of the applicable
Period of Restriction. All rights with respect to the Restricted Stock granted to a Participant under the Plan shall be available during his or her lifetime only to such Participant. 
  

 11 

 7.4 Other Restrictions. The Committee, in its sole discretion, may impose such other restrictions
on any Shares of Restricted Stock as it may deem advisable including, without limitation, restrictions based upon the achievement of specific performance goals (Company-wide, divisional, and/or individual), and/or restrictions under applicable
Federal or state securities laws; and may legend the certificates representing Restricted Stock to give appropriate notice of such restrictions. For example, the Committee may determine that some or all certificates representing Shares of Restricted
Stock shall bear the following legend: 
 “The sale or other transfer of the shares of stock represented by this certificate, whether
voluntary, involuntary, or by operation of law, is subject to certain restrictions on transfer as set forth in the Central Garden & Pet Company 2003 Omnibus Equity Incentive Plan, and in a Restricted Stock Agreement. A copy of the Plan and
such Restricted Stock Agreement may be obtained from the Secretary of Central Garden & Pet Company.” 
 7.5 Removal of
Restrictions. Except as otherwise provided in this Section 7, Shares of Restricted Stock covered by each Restricted Stock grant made under the Plan shall be released from escrow as soon as practicable after the last day of the Period of
Restriction. The Committee, in its discretion, may accelerate the time at which any restrictions shall lapse, and/or remove any restrictions. After the restrictions have lapsed, the Participant shall be entitled to have any legend or legends under
Section 7.4 removed from his or her Share certificate, and the Shares shall be freely transferable by the Participant. 
 7.6 Voting
Rights. During the Period of Restriction, Participants holding Shares of Restricted Stock granted hereunder may exercise full voting rights, if any, with respect to those Shares, unless the Committee determines otherwise. 
 7.7 Dividends and Other Distributions. During the Period of Restriction, Participants holding Shares of Restricted Stock shall be entitled to
receive all dividends and other distributions paid with respect to such Shares, unless otherwise provided in the Award Agreement. If any such dividends or distributions are paid in Shares, the Shares shall be subject to the same restrictions on
transferability and forfeitability as the Shares of Restricted Stock with respect to which they were paid. 
 7.8 Return of Restricted
Stock to Company. Subject to the applicable Award Agreement and Section 7.5, upon the earlier of (a) the Participant’s termination of employment, or (b) the date set forth in the Award Agreement, the Restricted Stock for
which restrictions have not lapsed shall revert to the Company and, subject to Section 4.2, again shall become available for grant under the Plan. 
 SECTION 8 
 PERFORMANCE UNITS AND PERFORMANCE SHARES 
 8.1 Grant of Performance Units/Shares. Performance Units and Performance Shares may be granted to Employees and Consultants at any time and from
time to time, as shall be determined by the Committee, in its sole discretion. The Committee shall have complete discretion in determining the number and class of Performance Units and Performance Shares granted to each Participant. 
  

 12 

 8.2 Value of Performance Units/Shares. Each Performance Unit shall have an initial value that is
established by the Committee at the time of grant. Each Performance Share shall have an initial value equal to the Fair Market Value of a Share on the date of grant. The Committee shall set performance goals in its discretion which, depending on the
extent to which they are met, will determine the number and/or value of Performance Units/Shares that will be paid out to the Participants. The time period during which the performance goals must be met shall be called the “Performance
Period”. 
 8.3 Earning of Performance Units/Shares. After the applicable Performance Period has ended, the holder of Performance
Units/Shares shall be entitled to receive a payout of the number of Performance Units/Shares earned by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding performance goals have been
achieved. After the grant of a Performance Unit/Share, the Committee, in its sole discretion, may adjust and/or waive the achievement of any performance goals for such Performance Unit/Share. 
 8.4 Form and Timing of Payment of Performance Units/Shares. Payment of earned Performance Units/Shares shall be made as soon as practicable after
the expiration of the applicable Performance Period. The Committee, in its sole discretion, may pay earned Performance Units/Shares in the form of cash, in Shares (which have an aggregate Fair Market Value equal to the value of the earned
Performance Units/Shares at the close of the applicable Performance Period) or in a combination thereof. 
 8.5 Cancellation of
Performance Units/Shares. Subject to the applicable Award Agreement, upon the earlier of (a) the Participant’s termination of employment, or (b) the date set forth in the Award Agreement, all remaining Performance Units/Shares
shall be forfeited by the Participant to the Company, and subject to Section 4.2, the Shares subject thereto shall again be available for grant under the Plan. 
 8.6 Nontransferability. Performance Units/Shares may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will, the laws of descent and distribution, or as
permitted under Section 9. A Participant’s rights under the Plan shall be exercisable during the Participant’s lifetime only by the Participant or the Participant’s legal representative. 
 SECTION 9 
 BENEFICIARY DESIGNATION 

If permitted by the Committee, a Participant may name a beneficiary or beneficiaries to whom any unpaid vested Award shall be paid in event of the
Participant’s death. Each such designation shall revoke all prior designations by the same Participant and shall be effective only if given in a form and manner acceptable to the Committee. In the absence of any such designation, benefits
remaining unpaid at the Participant’s death shall be paid to the Participant’s estate and, subject to the terms of the Plan, any unexercised vested Award may be exercised by the administrator or executor of the Participant’s estate.

  

 13 

 SECTION 10 
 DEFERRALS 
 The Committee, in its sole discretion, may permit a Participant to defer receipt of the payment
of cash or the delivery of Shares that would otherwise be due to such Participant under an Award. Any such deferral elections shall be subject to such rules and procedures as shall be determined by the Committee in its sole discretion. 

SECTION 11 
 RIGHTS OF EMPLOYEES AND
CONSULTANTS 
 11.1 No Effect on Employment or Service. Nothing in the Plan shall interfere with or limit in any way the right of the
Company to terminate any Participant’s employment or service at any time, with or without cause. 
 11.2 Participation. No
Employee or Consultant shall have the right to be selected to receive an Award under this Plan, or, having been so selected, to be selected to receive a future Award. 
 SECTION 12 
 AMENDMENT, SUSPENSION, OR TERMINATION 
 12.1 Amendment, Suspension, or Termination. The Board, in its sole discretion, may alter, amend or terminate the Plan, or any part thereof, at any
time and for any reason. However, as required by applicable law, no alteration or amendment shall be effective without further stockholder approval. Neither the amendment, suspension, nor termination of the Plan shall, without the consent of the
Participant, alter or impair any rights or obligations under any Award theretofore granted. No Award may be granted during any period of suspension nor after termination of the Plan. 
 SECTION 13 
 TAX WITHHOLDING 
 13.1 Withholding Requirements. Prior to the delivery of any Shares or cash pursuant to an Award, the Company shall have the power and the right to
deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy Federal, state, and local taxes required to be withheld with respect to such Award. 
 13.2 Shares Withholding. The Committee, in its sole discretion and pursuant to such procedures as it may specify from time to time, may permit a
Participant to satisfy the minimum statutory tax withholding obligation, in whole or in part, by electing to have the Company withhold Shares having a value equal to the amount required to be withheld or by delivering to the Company already-owned
shares to satisfy the withholding requirement. The value of the Shares to be withheld or delivered will be based on their Fair Market Value on the date that the taxes are required to be withheld. 
  

 14 

 SECTION 14 
 INDEMNIFICATION 
 Each person who is or shall have been a member of the Committee, or of the Board, shall be
indemnified and held harmless by the Company against and from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, notion, suit, or proceeding to which he
or she may be a party or in which he or she may be involved by reason of any action taken or failure to act under the Plan or any Award Agreement and against and from any and all amounts paid by him or her in settlement thereof, with the
Company’s approval, or paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such action, suit, or proceeding against him or her, provided he or she shall give
the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of indemnification shall not be exclusive of any other rights of
indemnification to which such persons may be entitled under the Company’s Articles of Incorporation or Bylaws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless. 
 SECTION 15 
 SUCCESSORS 
 All obligations of the Company under the Plan, with respect to Awards granted hereunder, shall be binding on any successor to the Company, whether the
existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company. 
 SECTION 16 
 LEGAL CONSTRUCTION 
 16.1 Gender and Number. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine; the
plural shall include the singular and the singular shall include the plural. 
 16.2 Severability. In the event any provision of the
Plan shall be held illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

 16.3 Requirements of Law. The granting of Awards and the issuance of Shares under the Plan shall be subject to all applicable laws,
rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 
 16.4
Securities Law Compliance. With respect to Section 16 Persons, transactions under this Plan are intended to comply with all applicable conditions of Rule 16b-3. To the extent any provision of the Plan, Award Agreement or action by the
Committee fails to so comply, it shall be deemed null and void, to the extent permitted by law and deemed advisable by the Committee. 
  

 15 

 16.5 Governing Law. The Plan and all Award Agreements shall be construed in accordance with and
governed by the laws of the State of California. 
 16.6 Captions. Captions are provided herein for convenience only, and shall not
serve as a basis for interpretation or construction of the Plan. 
  

 16Nonemployee Director Equity Incentive Plan

 Exhibit 10.5 
 CENTRAL GARDEN & PET COMPANY 
 NONEMPLOYEE DIRECTOR EQUITY INCENTIVE PLAN 

(As amended effective December 10, 2008) 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
			
	 SECTION 1
	  	ESTABLISHMENT, PURPOSE AND DURATION	  	1
			
	 1.1
	  	Establishment	  	1
			
	 1.2
	  	Purpose of the Plan	  	1
			
	 1.3
	  	Effective Date	  	1
			
	 1.4
	  	Duration of the Plan	  	1
			
	 SECTION 2
	  	DEFINITIONS	  	1
			
	 2.1
	  	“Affiliate”	  	1
			
	 2.2
	  	“Board”	  	1
			
	 2.3
	  	“Code”	  	2
			
	 2.4
	  	“Company”	  	2
			
	 2.5
	  	“Director”	  	2
			
	 2.6
	  	“Disability”	  	2
			
	 2.7
	  	“Exchange Act”	  	2
			
	 2.8
	  	“Exercise Price”	  	2
			
	 2.9
	  	“Fair Market Value”	  	2
			
	 2.10
	  	“Nonemployee Director”	  	2
			
	 2.11
	  	“Option”	  	2
			
	 2.12
	  	“Optionee”	  	2
			
	 2.13
	  	“Plan”	  	2
			
	 2.14
	  	“Restricted Shares”	  	2
			
	 2.15
	  	“Shares”	  	2
			
	 SECTION 3
	  	ADMINISTRATION OF THE PLAN	  	3
			
	 3.1
	  	The Board	  	3
			
	 3.2
	  	Authority of the Board	  	3
			
	 3.3
	  	Decisions Binding	  	3
			
	 3.4
	  	Administrative Expenses	  	3
			
	 3.5
	  	Indemnification	  	3
			
	 SECTION 4
	  	SHARES SUBJECT TO THE PLAN	  	4
			
	 4.1
	  	Number of Shares	  	4
			
	 4.2
	  	Effect of Lapsed Options	  	4
			
	 4.3
	  	Adjustments in Authorized Shares	  	4

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
			
	 SECTION 5
	  	ELIGIBILITY	  	4
			
	 5.1
	  	Eligibility	  	4
			
	 5.2
	  	Consideration for Grant of Option or Restricted Shares	  	4
			
	 SECTION 6
	  	OPTIONS	  	4
			
	 6.1
	  	Grant of Options	  	4
			
	 6.2
	  	Terms of Options	  	5
			
	 SECTION 7
	  	RESTRICTED SHARES	  	6
			
	 7.1
	  	Grant of Restricted Shares	  	6
			
	 7.2
	  	Terms of Restricted Shares	  	6
			
	 SECTION 8
	  	MISCELLANEOUS	  	7
			
	 8.1
	  	Amendment or Termination of the Plan	  	7
			
	 8.2
	  	Beneficiary Designation	  	7
			
	 8.3
	  	Captions	  	7
			
	 8.4
	  	Applicable Law; Severability	  	7
			
	 8.5
	  	No Effect Upon Other Compensation Plans	  	7
			
	 8.6
	  	No Effect on Service	  	7
			
	 8.7
	  	Requirements of Law	  	7
			
	 8.8
	  	Rule 16b-3 Compliance	  	8

  

 -ii- 

 CENTRAL GARDEN & PET COMPANY 
 NONEMPLOYEE DIRECTOR EQUITY INCENTIVE PLAN 
 (As amended effective
December 10, 2008) 
 SECTION 1 
 ESTABLISHMENT, PURPOSE AND DURATION 
 1.1 Establishment. Central
Garden & Pet Company, a Delaware corporation (the “Company”), hereby amends the “Central Garden & Pet Company Nonemployee Director Equity Incentive Plan” (formerly known as the Central Garden & Pet
Company Nonemployee Director Stock Option Plan, the “Plan”), for the benefit of nonemployee members of the Board of Directors of the Company (“Nonemployee Directors”), in order to compensate such Nonemployee Directors for their
services by awarding them stock options (“Options”) and restricted shares of Company common stock (“Restricted Shares”) under the Plan. 
 1.2 Purpose of the Plan. The purpose of the Plan is to promote the success, and enhance the value, of the Company, by attracting, retaining and motivating Nonemployee Directors of outstanding competence.
The Plan also is designed to align the interests of Nonemployee Directors with the interests of the stockholders of the Company. 
 1.3 Effective Date. This amendment of the Plan is effective as of December 10, 2008, subject to the approval of the amendment by an affirmative vote, at the next meeting of the stockholders of the Company, or any
adjournment thereof, of the holders of a majority of the outstanding shares of the common stock and Class B stock, voting together as a class, of the Company, present in person or by proxy and entitled to vote at such meeting. Prior to such
affirmative vote, the Plan shall operate pursuant to the terms in effect prior to such amendment. 
 1.4 Duration of the Plan.
The Plan shall be effective as specified in Section 1.3, and subject to the right of the Board of Directors of the Company to terminate the Plan at any time and for any reason pursuant to Section 8, shall remain in effect thereafter. In
the event that on any date of grant the number of Shares (to be subject to Options or otherwise) granted to all Nonemployee Directors exceeds the number of Shares then available for grant under the Plan, each Nonemployee Director shall share pro
rata in the number of Shares that remain available for grant on such date (with Restricted Shares to be provided first). 
 SECTION 2 

 DEFINITIONS 
 For
purposes of this Plan, the following terms shall have the meanings indicated unless a different meaning is plainly required by the context: 
 2.1 “Affiliate” means any corporation or any other entity (including, but not limited to, partnerships and joint ventures) controlling, controlled by, or under common control with the Company. 
 2.2 “Board” means the Board of Directors of the Company. 

 2.3 “Code” means the Internal Revenue Code of 1986, as amended. Reference to a
specific section of the Code shall include such section, any valid regulation promulgated thereunder, and any comparable provision of any future legislation amending, supplementing or superseding such section. 
 2.4 “Company” means Central Garden & Pet Company, a Delaware corporation, or any successor thereto. 
 2.5 “Director” means an individual who is a member of the Board. 
 2.6 “Disability” means a permanent and total disability within the meaning of section 22(e)(3) of the Code. 
 2.7 “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor Act thereto.
Reference to a specific section of the Exchange Act shall include such section, any valid regulation promulgated thereunder, and any comparable provision of any future legislation amending, supplementing or superseding such section. 
 2.8 “Exercise Price” means the price at which a Share may be purchased pursuant to an Option. 
 2.9 “Fair Market Value” means the average of the highest and lowest quoted selling prices for Shares on the relevant date or the
closing sale price for the applicable Shares on the relevant date, or if there were no sales on such date, the arithmetic mean of the highest and lowest quoted selling prices on the nearest day before and the nearest day after the relevant date, as
determined on a consistent basis by the Board. 
 2.10 “Nonemployee Director” means a Director who is an employee of
neither the Company nor of any Affiliate. 
 2.11 “Option” means an option to purchase Shares which has been granted
under the provisions of the Plan. Options are not intended to be an incentive stock option under section 422 of the Code. 
 2.12
“Optionee” means a Nonemployee Director to whom an Option has been granted under the provisions of the Plan. 
 2.13
“Plan” means the Central Garden & Pet Company Nonemployee Director Equity Incentive Plan, as set forth in this instrument and as hereafter amended from time to time. 
 2.14 “Restricted Shares” means Shares granted pursuant to Section 7 of the Plan. 
 2.15 “Shares” means the shares of common stock, $0.01 par value, of the Company (“Common Stock”) or the shares of
Class A Common Stock, $0.01 par value, of the Company (“Class A Common Stock”). 
  

 2 

 SECTION 3 
 ADMINISTRATION OF THE PLAN 
 3.1 The Board. The Plan shall be administered by
the Board. It shall be the duty of the Board to conduct the general administration of the Plan in accordance with its provisions. 
 3.2 Authority of the Board. The Board shall have all powers and discretion necessary or appropriate to administer the Plan and to control its operation in accordance with its terms, including, but not by way of limitation, the
following powers: 
 (a) To interpret the provisions of the Plan and to determine, in its sole discretion, any question
arising under, or in connection with the administration or operation of, the Plan; 
 (b) To employ such counsel,
agents and advisers, and to obtain such legal, clerical and other services, as it may deem necessary or appropriate in carrying out the provisions of the Plan; and 
 (c) To prescribe, amend and rescind rules and regulations relating to the Plan, and to make all other determinations which may be
necessary or advisable for the administration of the Plan. 
 3.3 Decisions Binding. All actions, interpretations and decisions
of the Board shall be final, conclusive and binding on all persons, and shall be given the maximum deference permitted by law. 
 3.4
Administrative Expenses. All expenses incurred in the administration of the Plan by the Board, or otherwise, including legal fees and expenses, shall be paid and borne by the Company. 
 3.5 Indemnification. Each person who is or shall have been a member of the Board shall be indemnified and held harmless by the Company
against and from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, notion, suit, or proceeding to which he or she may be a party or in which he or she
may be involved by reason of any action taken or failure to act under the Plan and against and from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment
in any such action, suit, or proceeding against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf. The
foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company’s Certificate of Incorporation or Bylaws, as a matter of law, or otherwise, or any power
that the Company may have to indemnify them or hold them harmless. 
  

 3 

 SECTION 4 
 SHARES SUBJECT TO THE PLAN 
 4.1 Number of Shares. Subject to adjustment as
provided in Section 4.3, the maximum number of Shares available for grant under the Plan may not exceed 200,000 shares of Common Stock and 787,056 shares of Class A Common Stock. Such shares may be either authorized but unissued Shares or
treasury Shares. 
 4.2 Effect of Lapsed Options. If an Option is cancelled, terminates, expires or lapses for any reason, any
Shares subject to such Option again shall be made available for grant under the Plan (to the same Optionee or to a different person). 
 4.3 Adjustments in Authorized Shares. In the event of any merger, reorganization, consolidation, recapitalization, separation, liquidation, stock dividend, split-up, Share combination, or other change in the corporate
structure of the Company affecting the Shares, such adjustment shall be made in the number and class of Shares which may be delivered under the Plan, and in the number and class of and/or the Exercise Price of Shares subject to outstanding Options,
as the Board, in its sole discretion, shall determine to be appropriate to prevent the dilution or diminishment of Options. Notwithstanding the preceding sentence, the number of Shares subject to any Option always shall be a whole number.

 SECTION 5 
 ELIGIBILITY 
 5.1 Eligibility. All Nonemployee Directors shall be eligible to participate in the Plan.

 5.2 Consideration for Grant of Option or Restricted Shares. Any Option or Restricted Shares under the Plan shall be granted
in consideration of the past services of the Nonemployee Director. 
 SECTION 6 
 OPTIONS 
 6.1 Grant of Options. 
 6.1.1 Each Nonemployee Director who is a Nonemployee Director on February 20, 1996 automatically will receive on such date an
Option to purchase 10,000 Shares. 
 6.1.2 Each Optionee who received an Option to purchase 10,000 Shares pursuant to
Section 6.1.1, and each Nonemployee Director who becomes a Nonemployee Director after February 20, 1996, automatically will receive, on the date of each subsequent annual meeting of the stockholders of the Company on which the Nonemployee
Director is such, an Option to purchase such number of Shares (whose class shall be determined by the Board) as determined by A divided by B, where “A” is $200,000 and “B” is the Fair Market Value of an applicable Share on the
date on which the Option is granted. Any fractional Share shall be rounded up to the next full Share. Accordingly, for example, if the Fair Market Value of a Share on the date of grant is $9.00, then the Optionee or Nonemployee Director (as
applicable) would receive an Option to purchase 22,223 Shares (i.e., $200,000 divided by $9.00, rounded up to the next full Share). 
  

 4 

 6.2 Terms of Options. 
 6.2.1 Option Agreement. Each Option shall be evidenced by a written stock option agreement which shall be executed by the
Optionee and the Company. 
 6.2.2 Exercise Price. The Exercise Price for the Shares subject to each Option
shall be one hundred percent (100%) of the Fair Market Value of such Shares on the date of grant. 
 6.2.3
Exercisability. Each Option shall become exercisable with respect to one-third (1/3) of the Shares subject to the Option on each of the dates that is (a) six (6) months, (b) eighteen (18) months, and (c) thirty
(30) months after the date of grant of the Option. Notwithstanding the preceding sentence, if prior to the date when an Option would become exercisable, the Optionee terminates service on the Board on account of death or Disability, the Option
shall become exercisable in full on the date of such termination of service. 
 6.2.4 Expiration of Options.
Each Option shall terminate upon the expiration of forty-two (42) months from the date of grant of the Option. 
 6.2.5 Payment. Options shall be exercised by the Optionee’s delivery of a written notice of exercise to the Secretary of the Company, setting forth the number of Shares with respect to which the Option is to be exercised,
accompanied by full payment for the Shares. 
 The Exercise Price upon exercise of any Option shall be payable to the Company in full in
cash. The Board, in its sole discretion and pursuant to such procedures as it may specify from time to time, also may permit (a) an Optionee to elect to have the Company withhold Shares having a value equal to the amount required to be withheld
or by delivering to the Company already-owned Shares to satisfy the Exercise Price, or (b) by any other means which the Board, in its sole discretion, determines to both provide legal consideration for the Shares, and to be consistent with the
purposes of the Plan. The value of the Shares to be withheld or delivered will be based on their Fair Market Value on the date of exercise. 
 As soon as practicable after receipt of a written notification of exercise and full payment for the Shares purchased, the Company shall deliver to the Optionee Share certificates (in the Optionee’s name) representing such Shares.

 If any shares subject to an Option are not delivered to an Optionee because the Option is exercised through a reduction of shares subject
to the Option (i.e., “net exercised”), the number of shares that are not delivered to the Optionee shall remain available for issuance under the Plan. If the Exercise Price of any Option is satisfied by tendering shares of Common Stock or
Class A Common Stock held by the Optionee (either by actual delivery or attestation), then the number of shares so tendered shall remain available for issuance under the Plan. 
  

 5 

 6.2.6 Restrictions on Share Transferability. The Board may impose such
restrictions on any Shares acquired pursuant to the exercise of an Option, as it may deem advisable, including, but not limited to, restrictions related to applicable Federal securities laws, the requirements of any national securities exchange or
system upon which Shares are then listed and/or traded, and/or under any blue sky or state securities laws. 
 6.2.7
Nontransferability of Options. No Option granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will, the laws of descent and distribution, or as permitted in
Section 8.2. All Options granted to an Optionee under the Plan shall be exercisable during his or her lifetime only by such Optionee. 
 SECTION 7 
 RESTRICTED SHARES 
 7.1 Grant of Restricted Shares. Each Nonemployee Director automatically will receive, on the date of each annual meeting of the stockholders of the Company on which the Nonemployee Director is such, such
number of Restricted Shares (whose class shall be determined by the Board) as determined by A divided by B, where “A” is $20,000 and “B” is the Fair Market Value of an applicable Share on the date on which the Restricted Shares
are granted. Any fractional Share shall be rounded up to the next full Share. Accordingly, for example, if the Fair Market Value of a Share on the date of grant is $9.00, then the Nonemployee Director would receive 2,223 Restricted Shares (i.e.,
$20,000 divided by $9.00, rounded up to the next full Share). 
 7.2 Terms of Restricted Shares. 
 7.2.1 Restricted Share Agreement. Each restricted Share grant shall be evidenced by a written Restricted Share agreement
which shall be executed by the Nonemployee Director and the Company. 
 7.2.2 Vesting. Each grant of Restricted
Shares shall vest in full six (6) months after the date of grant. Notwithstanding the preceding sentence, if prior to the date when the Restricted Shares would vest, the Director terminates service on the Board on account of death or
Disability, the Restricted Shares shall become vested in full on the date of such termination of service. 
 7.2.3
Restrictions on Share Transferability. The Board may impose such restrictions on any Restricted Shares, as it may deem advisable, including, but not limited to, restrictions related to applicable Federal securities laws, the requirements of
any national securities exchange or system upon which Shares are then listed and/or traded, and/or under any blue sky or state securities laws. 
 7.2.4 Nontransferability of Unvested Restricted Shares. No restricted shares granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated prior to their
vesting pursuant to Section 7.2.2, other than by will, the laws of descent and distribution, or as permitted in Section 8.2. 
  

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 SECTION 8 
 MISCELLANEOUS 
 8.1 Amendment or Termination of the Plan. The Board, in its sole
discretion, may amend, alter, modify or terminate the Plan, in whole or in part, at any time and for any reason. However, only if and to the extent required to maintain the Plan’s qualification under Rule 16b-3 promulgated under the Exchange
Act, any such amendment shall be subject to stockholder approval. Neither the amendment, suspension, termination, nor scheduled expiration of the Plan shall, without the consent of the Nonemployee Director, alter or impair any rights or obligations
under any Option or Restricted Shares theretofore granted. No Option or Restricted Shares may be granted during any period of suspension nor after termination of the Plan. 
 8.2 Beneficiary Designation. If permitted by the Board, a Nonemployee Director may name a beneficiary or beneficiaries to whom any benefit
under the Plan is to be paid in case of the Nonemployee Director’s death before he or she receives any or all of such benefit. Each such designation shall revoke all prior designations by the same Nonemployee Director and must be in a form and
manner acceptable to the Board. In the absence of any such designation, or if no beneficiary survives the Nonemployee Director, benefits remaining unpaid at the Nonemployee Director’s death shall be paid to the person or persons entitled to
such benefits under the Nonemployee Director’s will or, if the Nonemployee Director shall fail to make testamentary disposition of such benefits, his or her legal representative. Any transferee must furnish the Company with (a) written
notice of his or her status as a transferee, and (b) evidence satisfactory to the Company to establish the validity of the transfer and compliance with any laws or regulations pertaining to said transfer. 
 8.3 Captions. The captions contained herein and in the table of contents are provided as a matter of convenience only, and in no way
define, limit, enlarge or describe the scope or intent of the Plan. Such captions shall not affect in any way the construction of any provision of the Plan. 
 8.4 Applicable Law; Severability. The Plan hereby created shall be construed, administered and governed in all respects in accordance with the laws of the State of California (with the exception of its
conflict of laws provisions). If any provision of this instrument shall be held invalid or unenforceable by a court of competent jurisdiction, the remaining provisions hereof shall continue to be fully effective. 
 8.5 No Effect Upon Other Compensation Plans. The adoption of this Plan shall not affect any other stock option, compensation or incentive
plans in effect for the Company or any Affiliate, and this Plan shall not preclude the Board from establishing any other forms of incentive or compensation for Nonemployee Directors. 
 8.6 No Effect on Service. Nothing in the Plan shall interfere with or limit in any way the right of the Company to terminate any
Nonemployee Director’s service on the Board at any time, with or without cause. 
 8.7 Requirements of Law. The granting
of Options and the issuance of Shares (including Restricted Shares) under the Plan shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be
required. 
  

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 8.8 Rule 16b-3 Compliance. Transactions under this Plan are intended to comply with all
applicable conditions of Rule 16b-3 or its successors under the Exchange Act. To the extent any provision of the Plan, an Option or any action by the Board fails to so comply, it shall be deemed null and void, to the extent permitted by law and
deemed advisable by the Board. Notwithstanding any contrary provision of the Plan, if the Board specifically determines that compliance with Rule 16b-3 no longer is required, all references in the Plan to Rule 16b-3 shall be of no force or effect.

  

 8

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