Document:

Separation Agreement and General Release dated October 31, 2011

 Exhibit 10.6 
 SEPARATION AGREEMENT AND GENERAL RELEASE 
 This Separation Agreement
and General Release (“Agreement”) is made and entered into by and between Thomas G. Budlong (the “Executive”) and Career Education Corporation, a Delaware corporation (the “Company”). 

1. Separation and Effective Dates. The Executive’s employment with the Company and, to the extent applicable, with its
direct and indirect subsidiaries, affiliates, companies, divisions, units, schools, and affiliated schools (the “Company Affiliates”), terminates effective October 31, 2011 (the “Separation Date”). Executive
agrees that on or before the Separation Date, Executive will tender his resignation from any officer and/or director positions held with any subsidiary companies or affiliates including Istituto Marangoni S.r.l., International University of Monaco
and Career Education Corporation France. The Executive understands and agrees that from and after the Separation Date, he is no longer authorized to incur any expenses, obligations or liabilities on behalf of the Company or the Company Affiliates.
This Agreement shall not become effective or enforceable until all parties have signed an original of this Agreement and the revocation period referenced in Paragraph 19 has expired. The Executive may not sign this agreement until close of business
on October 31, 2011. 
 2. No Claims. The Executive represents and agrees that he has not filed any notices,
claims, complaints, charges, or lawsuits of any kind whatsoever against the Releasees (as defined in Paragraph 11) with any court, any governmental agency, any regulatory body or any other third party with respect to any matter related to the
Company, a Company Affiliate or a Releasee, or arising out of his employment with and/or separation from the Company. 
 3.
Payment of Moneys Owed. The Executive and the Company acknowledge that the Company has paid, or will pay no later than November 15, 2011, all remuneration owed to the Executive as a result of his employment with and separation
from the Company, related to (a) his salary through the Separation Date, (b) all accrued (but unused) vacation pay for 2011 through the Separation Date, and (c) all business expenses, if any, incurred by him through the Separation
Date as a result of his employment with the Company, provided that such expenses are authorized under and consistent with the expense reimbursement policies of the Company. Except as specifically provided for in this Paragraph 3 and in Paragraphs 6
and 9, the Executive shall not be entitled to receive any compensation or benefits of employment from the Company or any Company Affiliate following the Separation Date. 
 4. Non-Admission of Liability and Acknowledgement of Compliance. This Agreement and the fact that it was offered are not and shall not in any way be construed as admissions by the Company
that it violated any federal, state or local law, statute or regulation, or that it acted wrongfully with respect to the Executive or to any other person or entity in any manner. The Company specifically disclaims any liability to or wrongful acts
against the Executive or any other person or entity. Further, the Executive acknowledges and agrees that it is the policy of the Company to comply with all applicable federal, state and local laws and regulations. The Executive affirms that he has
reported all compliance issues and violations of federal, state and local laws or regulations or Company policy of which he had knowledge during 

 the term of his employment, if any. The Executive represents and acknowledges that he has no further or
additional knowledge or information regarding compliance issues or possible violations of federal, state or local laws or regulations or Company policy other than what the Executive has previously raised, if any. 

5. Non-Admissibility. Neither this Agreement nor anything in this Agreement shall be construed to be or shall be admissible
in any proceeding as evidence of or an admission by the Company or the Executive of any violation of any state, federal or local laws or regulations or any rules, regulations, criteria or standards of any regulatory body. This Agreement may be
introduced, however, in any proceeding to enforce the Agreement. 
 6. Consideration. 

6.1 Severance, AIP and COBRA. In exchange for the promises and agreements made by the Executive contained in
this Agreement and in addition to the benefits provided there under, the Company will (a) within ten (10) days following the date this Agreement may no longer be revoked by the Executive as described in Paragraph 19 of this Agreement (and
provided that this Agreement has not been revoked), pay to the Executive a lump-sum payment of $346,000.00 (which amount is equal to one year of pay calculated based on the Executive’s base salary as of the Separation Date), less all applicable
taxes and other withholdings; (b) pay to the Executive a lump-sum pro-rated bonus payment, less all applicable taxes and other withholdings, calculated in accordance with the method for determining bonuses for other similarly situated employees
and based on the Executive’s employment through the Separation Date, paid in accordance with the normal procedures at the time such payments are made to Employees of the Company, but not later than March 15, 2012; and (c) if the
Executive is currently a participant in the Company health and/or dental insurance plan(s) and the Executive timely elects to continue insurance coverage under federal COBRA law, the Company will partially subsidize such COBRA coverage such that the
Executive will only pay the same cost that similarly situated active employees of the Company pay for such insurance coverage for the following month(s): November 2011 through October 2012. 

6.2 Stock Awards. 
 (a) Non-Forfeiture of Unvested Awards. The Executive and the Company hereby agree and acknowledge that prior to the date hereof the Compensation Committee of the Company’s Board of Directors
(the “Committee”) took action to ensure that, notwithstanding the provisions of the Career Education Corporation 1998 Employee Incentive Compensation Plan (the “1998 Plan”) and the Career Education Corporation 2008
Incentive Compensation Plan (the “2008 Plan”, and together with the 1998 Plan, the “Stock Plans”) and the provisions of the Award Agreements underlying the Executive’s Awards, all unvested Options and
Restricted Stock held by the Executive as of his Separation Date (the “Unvested Awards”) shall remain outstanding until forty (40) days following the Separation Date (the “Award Forfeiture Date”). A schedule of
the Executive’s unvested Options and Restricted Stock is attached hereto as Attachment A. 

  
 2 

 (b) Waiver of Conditions and Accelerated Vesting. Based on the
above-referenced prior approval of the Committee, the Company and the Executive hereby agree that, so long as this Agreement is executed by the Executive and becomes fully irrevocable prior to the Award Forfeiture Date, then all performance and
continued employment conditions to which the Unvested Awards would otherwise be subject shall be waived and the Unvested Awards shall become vested upon the later of (i) the date this Agreement becomes fully irrevocable by the Executive, or
(ii) the third trading day following the Company’s filings of its Form 10-Q for the fiscal quarter ending on September 30, 2011. For the purpose of clarity, to the extent this Agreement is either not executed by the Executive prior to
the Award Forfeiture Date or any portion of this Agreement remains revocable by the Executive as of the Award Forfeiture Date, then as of the Award Forfeiture Date all Unvested Awards shall be forfeited, cancelled and shall otherwise be of no force
or effect. 
 (c) Post Termination Exercise Period. Based on the above-referenced prior approval of the
Committee, the Company and the Executive hereby agree that, so long as this Agreement is executed by the Executive and becomes fully irrevocable prior to the Award Forfeiture Date, the post-termination exercise period for all vested Options held by
the Executive under the Stock Plans (including the Options which become vested pursuant to Paragraph 6.2(b) immediately above) shall be extended until the earlier of (i) the tenth anniversary of the grant date of such Option, or (ii) the
first anniversary of the Separation Date. For the purpose of clarity, to the extent this Agreement is either not executed by the Executive prior to the Award Forfeiture Date or any portion of this Agreement remains revocable by the Executive as of
the Award Forfeiture Date, then the vested Options held by the Executive under the Stock Plans shall be forfeited, cancelled and shall otherwise be of no force or effect on the Award Forfeiture Date. 

(d) General. For purposes of this Paragraph 6.2, capitalized terms which are used but not otherwise defined in this
Agreement shall have the definition set forth in the relevant Stock Plan. In addition, to the extent the treatment of the Executive’s Awards described herein is different than the treatment that would otherwise occur pursuant to the existing
terms of the underlying Award Agreements, this Agreement shall be deemed a written amendment of such Award Agreements. 
 6.3 Acknowledgment. The Executive acknowledges that the monies and benefits set forth in this Paragraph 6 constitute additional consideration above and beyond anything to which the Executive
is already entitled, in exchange for Executive’s execution of this Agreement. 

  
 3 

 7. No Disparagement or Encouragement of Claims. The Executive agrees that
Executive will not, nor will he cause anyone else to, make any statement or issue any communication, written or otherwise, that disparages, criticizes or otherwise reflects adversely on or encourages any adverse action against the Company, any
Company Affiliate or any Releasee (as defined in Paragraph 11), to either the press, the media or any other third party, except if testifying truthfully under oath pursuant to any lawful court order or subpoena or otherwise responding to or
providing disclosures required by law. The Company similarly agrees that its officers and directors will not, nor will they cause anyone else to, make any statement or issue any communication, written or otherwise, that disparages, criticizes or
otherwise reflects adversely on or encourages any adverse action against the Executive to either the press, the media or any third party, except if testifying truthfully under oath pursuant to lawful court order or subpoena or otherwise responding
to or providing disclosures required by law. 
 8. Non-Competition, Non-Solicitation and Confidential Information.

 8.1 Confidential Information and Protection of Confidential Information. The Executive
acknowledges that, throughout and as an incident to his employment with the Company, the Executive has become acquainted with and received Confidential Information relating to the Company, including trade secrets, processes, methods of operation,
business models and plans, advertising and marketing plans and strategies, Company records, research techniques and results, academic programs, academic course development, methods of instruction, training programs, computer programs, databases,
software codes, systems and models, marketing, promotional and sales programs, and financial information concerning the business of the Company, which information is not readily available to the public and gives the Company an opportunity to gain an
advantage over competitors who do not know or use this information in the same manner as the Company, and which the Company regards as confidential and proprietary (collectively “Confidential Information”). Such Confidential
Information includes, but is not limited to: (i) information relating to the Company’s past and existing students and vendors and the development of prospective students and vendors, including, but not limited to, specific student service
and product requirements, pricing, arrangements, payment terms, student lists and other similar information; (ii) inventions, designs, methods, discoveries, works of authorship, creations, improvements or ideas developed or otherwise produced,
acquired or used by the Company; (iii) advertising and marketing plans and strategies; (iv) the Company’s proprietary programs, processes or software; (v) the subject matter of any patents, design patents, copyrights, trade
secrets, trademarks, service marks, trade names, trade dress, manuals, operating instructions, training materials, and other industrial property; and (vi) other confidential and proprietary information or documents relating to the Company or
its students or vendors which the Company reasonably regards as being confidential. Confidential Information does not include: (a) information known in general to the Executive’s profession, or that becomes known thereafter, other than by
an unauthorized act of the Executive; (b) information that was lawfully in the Executive’s possession before his employment with the Company; or (c) information obtained lawfully and in good faith from another party after such
disclosure emanating from an original source other than the Company. 

  
 4 

 The Executive acknowledges that the Confidential Information is of incalculable value to
the Company and is the exclusive property of the Company, and that the Company would suffer irreparable damage if any of the Confidential Information is improperly disclosed or used. Accordingly, the Executive will not, at any time during
Executive’s employment with, or after the Executive’s separation from employment with, the Company, reveal, divulge, or make known to any person, firm or corporation any Confidential Information made known to the Executive or of which the
Executive has become aware, regardless of whether developed, prepared, devised, or otherwise created in whole or in part by the efforts of the Executive. The Executive further agrees that he will retain all Confidential Information in trust for the
sole benefit of the Company, and will not divulge or deliver any Confidential Information to any unauthorized person including, without limitation, any other employer of the Executive except as required by the order of any court or similar tribunal
or any other governmental body or agency of appropriate jurisdiction; provided, that the Executive will, to the extent practicable, give the Company prior written notice of any such disclosure and will cooperate with the Company in obtaining
a protective order or such similar protection as the Company may deem appropriate to preserve the confidential nature of such information. The foregoing obligations to maintain the Confidential Information shall not apply to any Confidential
Information that is, or without any action by the Executive becomes, generally available to the public. 
 8.2
Non-Competition. Commencing on the Separation Date and for fifty-two (52) weeks thereafter, the Executive shall not, in any way, directly or indirectly, either for the Executive or any other person or entity, whether paid or
unpaid, accept employment with, own, manage, operate, consult or provide expert services to any person or entity that competes with the Company or any of its subsidiaries in any capacity that involves any responsibilities or activities involving or
relating to any Competing Educational Service, as defined herein. “Competing Educational Service” means any educational service that competes with the educational services provided by the Company and/or any of its subsidiaries,
including, but not limited to, coursework in the areas of visual communication and design technologies; information technology; business studies; culinary arts; and health education, or any education service. The Executive hereby acknowledges that
the following organizations, among others, provide Competing Educational Services, and should the Executive accept employment with, own, manage, operate, consult or provide expert services to any of these organizations within said 52-week period, it
would inevitably require the use and/or disclosure of Confidential Information belonging to the Company and/or its subsidiaries and would provide such organizations with an unfair business advantage over the Company: DeVry, Inc.; Kaplan, Inc.;
Apollo Group Inc.; Education Management LLC; Embanet Corporation; Capella Education Company; ITT Educational Services, Inc.; Corinthian Colleges, Inc.; Laureate Education, Inc.; and Strayer Education, Inc. and each of their respective subsidiaries,
affiliates and successors. The Executive further acknowledges that the Company and/or its subsidiaries provide career-oriented education through physical and web-based virtual campuses throughout the world and, therefore, it is impracticable to
identify a limited, specific geographical scope for this Paragraph 8.2. Nothing herein shall prevent the Executive from owning less than two percent (2%) of the capital stock of a company whose stock is publicly traded and that is engaged in
Competing Educational Services. 

  
 5 

 8.3 Non-Solicitation/Non-Hire. Commencing on the Separation
Date and for eighteen (18) months thereafter, the Executive will not, directly or indirectly, individually or on behalf of any Person (as defined below) (a) hire, solicit, aid or induce any then-current employee of the Company or Company
Affiliates to leave the Company or Company Affiliates to accept employment with or render services for the Executive or such Person, or (b) solicit, aid or induce any then-current student, customer, client, vendor, lender, supplier or sales
representative of the Company or Company Affiliates or similar persons engaged in business with the Company or Company Affiliates to discontinue the relationship or reduce the amount of business done with the Company or Company Affiliates.
“Person” means any individual, a partnership, a corporation, an association, a limited liability company, a joint stock company, a trust, a joint venture, an unincorporated organization, a governmental entity, or any department, agency or
political subdivision thereof, or an accrediting body. 
 8.4 Acknowledgements. The Executive fully
understands the nature and burdens of this Paragraph 8. The Executive acknowledges that the provisions of this Paragraph 8 are fair, reasonable, and not excessively broad, that they are necessary to protect important and legitimate business
interests of the Company, Company Affiliates and each school, and that in light of the Executive’s education, experience, and capabilities, the Executive can honor all parts of this Paragraph 8 without being prevented from earning a fully
adequate livelihood for the Executive and the Executive’s dependents from now throughout any period during which the Executive’s activities are restricted hereunder. The Executive agrees that the covenants in this Paragraph 8 are in
addition to any common law, statutory or contractual obligations of the Executive. 
 8.5 Remedies and
Enforcement. The Executive acknowledges that a breach on his part of the terms of the Restrictive Covenants set forth in this Paragraph 8 will cause irreparable damage to the Company and that monetary damages will not provide an adequate
remedy to the Company. Accordingly, the Executive agrees that the Company will be entitled to enforce the terms herein in court and seek any and all remedies available to it in equity and law, including, but not limited to, injunctive relief,
without the posting of any bond or other security. The parties agree that the prevailing party in any action related to enforcement of such Restrictive Covenants shall be entitled to reimbursement from the non-prevailing party for attorneys fees and
costs incurred related to such action. The Executive further acknowledges and agrees that in the event any of the Restrictive Covenants contained in this Paragraph 8, or any part thereof, hereafter is construed to be illegal, invalid or
unenforceable, the same shall not affect the remainder of such covenant or any other covenants. The Executive and the Company expressly empower a court of competent jurisdiction to modify any Restrictive Covenant in this Paragraph 8 to the extent
necessary to make it legal, valid, and enforceable. 
 9. Indemnity and Cooperation. In the event of a lawsuit or
claim by a third party in which the Executive is sued either jointly or separately for acts arising out of the scope of the Executive’s employment with the Company, the Company agrees to defend the Executive and hold the Executive harmless in
accordance with the Executive’s rights to indemnification under the Company’s certificate of incorporation or bylaws of the Company or any existing Indemnification Agreement between the Executive and the Company. In turn, in the event of
any 

  
 6 

 
pending or threatened legal action against the Company or the Company Affiliates or Releasees relating to events which occurred during the Executive’s employment, the Executive acknowledges
and agrees that he will cooperate to the fullest extent possible in the investigation, preparation, prosecution, or defense of the Company’s or the Company Affiliate’s case, including, but not limited to, the execution of affidavits or
documents or providing of information requested by the Company or the Company’s counsel. Reasonable out-of-pocket expenses related to such assistance will be reimbursed by the Company, if the Company’s written approval is obtained in
advance. In addition, the Executive will be compensated by the Company for his time, at the rate of $100/hour, when requested by the Company to prepare to provide testimony or spend time assisting the Company in any of the foregoing activities or
with such matters. The Executive will not, however, be compensated for the time he spends providing testimony. Nothing in this Paragraph should be construed as suggesting or implying that the Executive should testify in any way other than truthfully
or provide anything other than accurate, truthful information. The Executive further agrees to provide truthful and timely answers to any reasonable questions the Company may have from time to time about the work the Executive performed during his
employment. A failure on the part of the Executive to reasonably cooperate with the Company shall constitute and be treated as a material breach of this Agreement. Any amount paid to the Executive pursuant to this Paragraph 9 for his time shall be
paid promptly, and in any event no later than March 15 of the year following the year in which such services occurred. For purposes of complying with Section 409A, with respect to any reimbursement required to be made pursuant to this
Paragraph 9, (i) the provision of such reimbursements during one calendar year shall not affect the reimbursements made available in a different calendar year, (ii) such reimbursements shall not be subject to liquidation or exchange for
other benefits, and (iii) any reimbursements shall be paid as soon as administratively feasible (or in accordance with the timing prescribed under the applicable Company policy) after the applicable expense is incurred but no later than the
last day of the calendar year following the calendar year in which the applicable expense was incurred. 
 10. Company
Property. The Executive represents, warrants and covenants that the Executive has returned to the Company (or will return to the Company on or before the Separation Date) all Company property in the Executive’s possession or control,
including, without limitation, all telephones, keys, access cards, security badges, credit cards, phone cards, equipment, computer hardware and encryption devices (including, but not limited to, all computers, Blackberry devices, and personal data
assistants), all contents of all such hardware, all passwords and codes needed to obtain access to or operate all or part of any such hardware, all electronic storage devices (including but not limited to all hard drives, disk drives, diskettes,
CDs, CD-ROMs, DVDs, and DVD-ROMs), all contents of all such electronic storage devices, all passwords and codes needed to obtain access to or use all or part of any such electronic storage device, all computer software and programs, financial
information, accounting records, computer printouts, manuals, data, materials, papers, books, files, documents, records, policies, student information and lists, customer information and lists, marketing information, specifications and plans, data
base information and lists, mailing lists, and notes, including but not limited to any property describing or containing any Confidential Information, and the Executive agrees that the Executive will not retain any copies, duplicates, reproductions
or excerpts thereof in any form whatsoever. 

  
 7 

 11. General Release, Discharge of All Claims and Agreement Not to Sue. In
consideration of the payments and benefits referred to in Paragraph 6 from the Company to the Executive as set forth herein and other consideration the receipt and sufficiency of which is hereby acknowledged, the Executive, on behalf of himself, his
dependents, heirs, executors, administrators, assigns and successors, and each of them hereby: 
 (a)
voluntarily, fully and unconditionally releases and forever discharges the Company, the Company Affiliates, and associated organizations, past and present, and each of them, as well as its and their trustees, directors, officers, agents, attorneys,
employees, contractors, insurers, representatives, assigns, and successors, past and present, and each of them, (hereinafter “Releasees”), with respect to and from any and all legally waivable claims, wages, demands, rights, liens,
agreements, contracts, covenants, actions, suits, causes of action, obligations, debts, costs, expenses, attorneys’ fees, damages, judgments, orders, liabilities, complaints, and promises whatsoever, in law or equity, known or unknown,
suspected or unsuspected, and whether or not concealed or hidden (collectively, “Claims”), which he now owns or holds or he has at any time heretofore owned or held or may in the future hold as against any or all said Releasees,
arising on or before the date this Agreement is executed, including, but not limited to, any Claims arising out of or in any way connected with his employment with and/or separation from the Company, any Claims arising under the Sarbanes-Oxley Act
of 2002, Title VII of 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 of 1967, as amended (the “ADEA”), the Americans with Disabilities
Act, the Family and Medical Leave Act of 1993, the Fair Labor Standards Act, the False Claims Act, as amended, the Employee Retirement Income Security Act, as amended, Illinois civil rights laws and regulations, Illinois wage/hour laws and
regulations, or any other federal, state or local law, regulation, ordinance or public policy, and any Claims for severance pay, bonus pay, sick leave, holiday pay, vacation pay, life insurance, health, medical or disability insurance or any other
fringe benefit or the common law of any state relating to employment contracts, wrongful discharge, defamation or any other matter; and 
 (b) agrees not to sue any or all of the Releasees with respect to any matter released or discharged herein, except that the Executive may seek a determination of the validity of the waiver of his rights
under the ADEA. Nothing in this Agreement is intended to reflect any party’s belief that the waiver of the Executive’s claims under the ADEA is invalid or unenforceable, it being the intent of the parties that such claims are waived.

 12. Exclusions from General Release and Discharge. Notwithstanding the above, the Executive does not release
and discharge (a) any right to continue his group health insurance coverage pursuant to applicable law; (b) any vested benefits in any qualified retirement plan; (c) any claim for breach of this Agreement; and (d) any claim that
cannot be released by law, including but not limited to the right to file a charge with or participate in an investigation by the Equal Employment Opportunity Commission (“EEOC”). The Executive does, however, hereby waive any right
to recover any money should the EEOC or any other agency or individual pursue any claims on his behalf. 

  
 8 

 13. Obligations Regarding Section 16 Reporting. The Executive
understands that his Form 4 reporting obligations cease November 1, 2011, and that he has no reporting obligations related to the delayed vesting or forfeiture of his Unvested Awards as provided pursuant to Paragraph 6.2 of this Agreement, as
those transactions will occur after the termination of his Form 4 reporting period has terminated. The Executive agrees that with respect to any Form 4 or Form 5 filing made on his behalf by the Company, regardless of whether it is made with or
without his review, (1) he is fully responsible for such filing and the contents of such Form, and (2) neither the Company nor its Insider Trading Compliance Officer (nor any of its or his designees, representative, agents or legal
counsel) have any responsibility or liability with respect to such filing or the contents of such Form. The Executive understands and agrees that the Company will not undertake to file any additional Forms 4 or 5 or other reports with the Securities
and Exchange Commission on his behalf. The Executive further understands and agrees that all responsibility for Section 16 compliance under the Securities Exchange Act of 1934 is his own and that neither the Company nor the Insider Trading
Compliance Officer (nor any of its or his designees, representatives, agents or legal counsel) will have any responsibility or liability with respect to any failure to file (or delinquent filing of) a Form 4 or 5, any violation of Section 16(a)
of the Securities Exchange Act of 1934 or any “short swing profits” under Section 16(b) of that Act. 
 14.
No Representation. The Executive agrees and acknowledges that in executing this Agreement he does not rely and has not relied on any representation or statement by any of the Releasees or by any of the Releasees’ agents,
representatives or attorneys with regard to the subject matter, basis or effect of this Agreement. 
 15. No
Assignment. The Executive represents that he has not heretofore assigned or transferred, or purported to assign or transfer, to any person or entity, any claim or any portion thereof or interest therein, and the Executive agrees to
indemnify, defend and hold harmless each and all of the Releasees against any and all disputes based on, arising out of, or in connection with any such transfer or assignment, or purported transfer or assignment, of any claims or any portion thereof
or interest therein. 
 16. Severability. If any provision of this Agreement or the application thereof is held
invalid, the invalidity shall not affect other provisions or applications of the Agreement which can be given their intended effect without the invalid provisions or applications and to this end the provisions of this Agreement are declared to be
severable. If, however, a court of competent jurisdiction finds that any release by the Executive in Paragraph 11 above is illegal, void, or unenforceable, the Executive will promptly sign a release, waiver, and/or agreement that is legal and
enforceable to the greatest extent permitted by law. 
 17. No Continuing Relationship. The Executive and the
Company acknowledge that any employment, contractual or other relationship between the Executive and the Company terminated as of the Separation Date and that they have no further employment, contractual or other relationship except as may arise out
of this Agreement. The Executive waives any right or claim to reinstatement as an employee of the Company, and will not seek employment, an independent contractor relationship or any relationship in the future with the Company. 

  
 9 

 18. Voluntary Execution of Agreement and Consultation with Counsel. The
Executive is hereby advised to consult with an attorney prior to executing this Agreement. The Executive represents, warrants and agrees that he has carefully read the Agreement and understands its meaning and has had the opportunity to seek
independent legal advice from an attorney of his choice with respect to the advisability of this Agreement and is signing this Agreement, knowingly, voluntarily and without any coercion or duress. The Executive further acknowledges that he has been
given a period of twenty-one (21) days within which to consider whether to sign this Agreement. The Executive may execute this Agreement at any time within the twenty-one day period and by doing so the Executive waives any right to the
remaining days. 
 19. Revocabilitv of Agreement. The Executive has the right to revoke this Agreement, solely
with respect to his release of claims under the Age Discrimination in Employment Act and the Older Workers Benefit Protection Act, for up to seven (7) days after the Executive signs it. In order to revoke this Agreement, the Executive must sign
and send a written notice of the decision to do so, following the notice provisions set forth in Paragraph 20, below, which must be received no later than the eighth day after the Executive executes the Agreement. If the Executive revokes this
Agreement, the Executive will not be entitled to the consideration from the Company described herein. 
 20.
Notice. All notices, requests, demands and other communications hereunder to either party shall be in writing and shall be delivered, either by hand, by facsimile, by overnight courier or by certified mail, return receipt requested,
duly addressed as indicated below or to such changed address as the party may subsequently designate: 
 To the Company:

 Senior Vice President of Human Resources 
 Career Education Corporation 
 231 N. Martingale Road 

Schaumburg, IL 60173 
 (FAX) 847-585-2641 
 To the Executive: 

Thomas G. Budlong 
 [Address Redacted] 
 21. Governing Law. This Agreement is made and
entered into in the State of Illinois and shall be interpreted, enforced and governed under Illinois law, without regard to its conflict of laws principles. 

  
 10 

 22. Binding Effect. This Agreement shall be binding upon the Executive and
upon the Executive’s dependents, heirs, representatives, executors, administrators, successors and assigns, and shall inure to the benefit of the Company and others released in this Agreement, and to their respective dependents, heirs,
representatives, executors, administrators, successors and assigns. 
 23. No Presumption. This Agreement shall be
construed and interpreted as if all of its language were prepared jointly by the Executive and the Company. No language in this Agreement shall be construed against a party on the ground that such party drafted or proposed that language. 

24. Violation of Agreement. If the Executive or the Company prevails in a legal or equitable action claiming that the other
party has breached this Agreement, the prevailing party shall be entitled to recover from the other party the reasonable attorneys’ fees and costs incurred by the prevailing party in connection with such action. 

25. Execution of Counterparts. This Agreement may be executed in counterparts, but shall be construed as if signed in one
document. 
 26. Entire Agreement. This Agreement constitutes and contains the entire agreement and understanding
concerning the Executive’s employment with and separation from the Company and the other subject matters addressed herein between the parties, and supersedes and replaces all prior negotiations and all agreements proposed or otherwise, whether
written or oral, concerning the subject matters hereof, except for the parties’ agreements relating to indemnification, trade secrets, confidential and proprietary information, copyrights, and the like, if any, which shall remain in force and
effect in accordance with the terms thereof. The Executive represents and agrees that no promises, statements or inducements have been made to him which caused him to sign this Agreement other than those which are expressly stated in this Agreement.
This is an integrated document and may not be altered except by written agreement signed by an officer designated by the Company, and the Executive. 
 I have carefully read the entire Agreement and accept and agree to the provisions it contains and hereby execute it voluntarily and with full understanding of its consequences. 

DO NOT SIGN PRIOR TO OCTOBER 31, 2011 
 Executed this 31st day of October, 2011. 
  

							
		 		 	/s/ Thomas G. Budlong
		 		 	Thomas G. Budlong
			
		 		 	CAREER EDUCATION CORPORATION
				
	 DATED: October 31, 2011
	 		 	By:	 	/s/ Colon S. McLean
		 		 	 Name: Colon S. McLean

		 		 	 Title: SVP HR

  
 11 

 ATTACHMENT A 
  

																													
	 Grant
 Date
	  	Grant Date
Price	 	  	Plan	 	  	# of
Options	 	  	Vested	 	  	Unvested	 	  	Time RSA
Unvested	 	  	Perf RSA
Unvested	 
	 8/31/2007
	  	$	29.70	  	  	 	1998	  	  	 	35,000	  	  	 	35,000	  	  	 	—  	  	  	 	—  	  	  	 	—  	  
	 3/31/2008
	  	$	13.32	  	  	 	1998	  	  	 	39,500	  	  	 	29,625	  	  	 	9,875	  	  	 	—  	  	  	 	—  	  
	 2/25/2009
	  	$	26.15	  	  	 	2008	  	  	 	20,445	  	  	 	10,222	  	  	 	10,223	  	  	 	3,748	  	  	 	9,369	  
	 3/3/2010
	  	$	29.02	  	  	 	2008	  	  	 	22,024	  	  	 	5,506	  	  	 	16,518	  	  	 	—  	  	  	 	16,152	  
	 3/14/2011
	  	$	21.80	  	  	 	2008	  	  	 	23,616	  	  	 	—  	  	  	 	23,616	  	  	 	4,328	  	  	 	7,577	  
	 Total
	  				  				  	 	140,585	  	  	 	80,353	  	  	 	60,232	  	  	 	8,076	  	  	 	33,098	  

  

					
	 Accelerated stock options:
	  	 	60,232	  
	 Total stock options:
	  	 	140,585	  
	 Accelerated restricted stock:
	  	 	41,174	  

  
 122011 Incentive Compensation Plan

 EXHIBIT 10.6 

CAESARSTONE SDOT-YAM LTD. 
 2011 INCENTIVE COMPENSATION PLAN 
 CaesarStone Sdot-Yam Ltd., an Israeli
company (the “Company”), has adopted the CaesarStone Sdot-Yam Ltd. 2011 Incentive Compensation Plan (the “Plan”) for the benefit of non-employee directors of the Company and officers and eligible employees and
consultants of the Company and any Subsidiaries and Affiliates (as each term is defined below), as follows: 
 ARTICLE I.

 ESTABLISHMENT; PURPOSES; AND DURATION 
 1.1. Establishment of the Plan. The Company hereby establishes this incentive compensation plan to be known as the “Caesarstone Sdot-Yam Ltd. 2011 Incentive Compensation Plan,” as set
forth in this document. The Plan permits the grant of Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Units, Performance Shares, Cash-Based Awards and Other Share-Based Awards. Following adoption of
the Plan by the Board of Directors, the Plan shall become effective upon the date on which the Plan is approved by the holders of a majority of the outstanding Shares which are present and voted at a meeting (the “Effective Date”),
which approval must occur within the period ending twelve (12) months after the date the Plan is adopted by the Board. The Plan shall remain in effect as provided in Section 1.3. The effectiveness of any Awards granted prior to such
shareholder approval shall be specifically subject to and conditioned upon, and no Award shall be vested or exercisable until, such shareholder approval. If the Plan is not so approved by the Company’s shareholders or the Company’s initial
public offering of Shares does not occur prior to December 31, 2012, the Plan shall not become effective, and shall terminate immediately, and any Awards previously granted shall thereupon be automatically canceled and deemed to have been null
and void ab initio. 
 1.2. Purposes of the Plan. The purposes of the Plan are to provide additional incentives to
non-employee directors of the Company and to those officers, employees and consultants of the Company, Subsidiaries and Affiliates whose substantial contributions are essential to the continued growth and success of the business of the Company and
the Subsidiaries and Affiliates, in order to strengthen their commitment to the Company and the Subsidiaries and Affiliates, and to attract and retain competent and dedicated individuals whose efforts will result in the long-term growth and
profitability of the Company and to further align the interests of such non-employee directors, officers, employees and consultants with the interests of the shareholders of the Company. To accomplish such purposes, the Plan provides that the
Company may grant Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Units, Performance Shares, Cash-Based Awards and Other Share-Based Awards. 

1.3. Duration of the Plan. The Plan shall commence on the Effective Date, as described in Section 1.1, and shall remain in
effect, subject to the right of the Board of Directors 

 
to amend or terminate the Plan at any time pursuant to Article XV, until all Shares subject to it shall have been delivered, and any restrictions on such Shares have lapsed, pursuant to the
Plan’s provisions. However, in no event may an Award be granted under the Plan on or after ten years from the Effective Date. 
 ARTICLE II. 
 DEFINITIONS 

Certain terms used herein have the definitions given to them in the first instance in which they are used. In addition, for purposes of
the Plan, the following terms are defined as set forth below: 
 2.1. “Affiliate” means any entity other than
the Company and any Subsidiary that is affiliated with the Company through stock or equity ownership or otherwise and is designated as an Affiliate for purposes of the Plan by the Committee. 

2.2. “Applicable Exchange” means the New York Stock Exchange, NASDAQ Stock Market or such other securities exchange as
may at the applicable time be the principal market for the Shares. 
 2.3. “Award” means, individually or
collectively, a grant under the Plan of Stock Options, Stock Appreciation Rights, Restricted Stock Awards, Restricted Stock Units, Performance Shares, Performance Units, Cash-Based Awards, and Other Share-Based Awards. 

2.4. “Award Agreement” means either: (a) a written agreement entered into by the Company and a Participant setting
forth the terms and provisions applicable to an Award granted under the Plan, or (b) a written or electronic statement issued by the Company to a Participant describing the terms and provisions of such Award, including any amendment or
modification thereof. The Committee may provide for the use of electronic, internet or other non-paper Award Agreements, and the use of electronic, internet or other non-paper means for the acceptance thereof and actions thereunder by a Participant.

 2.5. “Beneficial Ownership” (including correlative terms) shall have the meaning given such term in Rule
13d-3 promulgated under the Exchange Act. 
 2.6. “Board” or “Board of Directors” means the
Board of Directors of the Company. 
 2.7. “Cash-Based Award” means an Award, whose value is determined by the
Committee, granted to a Participant, as described in Article IX. 
 2.8. “Cause” shall have the definition given
such term in a Participant’s Award Agreement, or in the absence of any such definition, as determined in good faith by the Committee. 
 2.9. “Change of Control” means the occurrence of any of the following: 

  
 2 

 (a) an acquisition in one transaction or a series of related transactions (other than
directly from the Company or pursuant to Awards granted under the Plan or compensatory options or other similar awards granted by the Company) by any Person of any Voting Securities of the Company, immediately after which such Person has Beneficial
Ownership of fifty percent (50%) or more of the combined voting power of the Company’s then outstanding Voting Securities; provided, however, that in determining whether a Change of Control has occurred pursuant to this
Section 2.9(a), Voting Securities of the Company which are acquired in a Non-Control Acquisition shall not constitute an acquisition that would cause a Change of Control; or 

(b) the consummation of any merger, consolidation, recapitalization or reorganization involving the Company unless: 

(i) the shareholders of the Company, immediately before such merger, consolidation, recapitalization or reorganization,
own, directly or indirectly, immediately following such merger, consolidation, recapitalization or reorganization, more than fifty percent (50%) of the combined voting power of the outstanding Voting Securities of the corporation resulting from
such merger or consolidation or reorganization (the “Company Surviving Corporation”) in substantially the same proportion as their ownership of the Voting Securities of the Company immediately before such merger, consolidation,
recapitalization or reorganization; and 
 (ii) the individuals who were members of the Board immediately prior
to the execution of the agreement providing for such merger, consolidation, recapitalization or reorganization constitute at least a majority of the members of the board of directors of the Company Surviving Corporation, or a corporation
Beneficially Owning, directly or indirectly, a majority of the voting securities of the Company Surviving Corporation, and 
 (iii) no Person, other than (A) the Company, (B) any Related Entity, (C) any employee benefit plan (or any trust forming a part thereof) that, immediately prior to such merger,
consolidation, recapitalization or reorganization, was maintained by the Company, the Company Surviving Corporation, or any Related Entity or (D) any Person who, together with its Affiliates, immediately prior to such merger, consolidation,
recapitalization or reorganization had Beneficial Ownership of fifty percent (50%) or more of the then outstanding Voting Securities of the Company, owns, together with its Affiliates, Beneficial Ownership of fifty percent (50%) or more of
the combined voting power of the Company Surviving Corporation’s then outstanding Voting Securities 
 (a transaction
described in clauses (b)(i) through (b)(iii) above is referred to herein as a “Non-Control Transaction”); or 

(c) any sale, lease, exchange, transfer or other disposition (in one transaction or a series of related transactions) of all or
substantially all of the assets or business of the Company to any Person (other than (A) a transfer or distribution to a Related Entity, or (B) a transfer or distribution to the Company’s shareholders of the stock of a Related Entity
or any other assets). 

  
 3 

 
Notwithstanding the foregoing, a Change of Control shall not be deemed to occur solely because any Person (the “Subject Person”) acquired Beneficial Ownership of fifty percent
(50%) or more of the combined voting power of the then outstanding Voting Securities of the Company as a result of the acquisition of Voting Securities of the Company by the Company which, by reducing the number of Voting Securities of the
Company then outstanding, increases the proportional number of shares Beneficially Owned by the Subject Persons, provided that if a Change of Control would occur (but for the operation of this sentence) as a result of the acquisition of
Voting Securities by the Company and (1) before such share acquisition by the Company the Subject Person becomes the Beneficial Owner of any new or additional Voting Securities of the Company in a related transaction or (2) after such
share acquisition by the Company the Subject Person becomes the Beneficial Owner of any new or additional Voting Securities of the Company which in either case increases the percentage of the then outstanding Voting Securities of the Company
Beneficially Owned by the Subject Person, then a Change of Control shall be deemed to occur. 
 Solely for purposes of this Section 2.9,
(1) “Affiliate” shall mean, with respect to any Person, any other Person that, directly or indirectly, controls, is controlled by, or is under common control with, such Person, and (2) “control” (including
with correlative meanings, the terms “controlling,” “controlled by” and “under common control with”), as applied to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction
of the management and policies of that Person, whether through the ownership of voting securities or by contract or otherwise. Any Relative (for this purpose, “Relative” means a spouse, child, parent, parent of spouse, sibling or
grandchild) of an individual shall be deemed to be an Affiliate of such individual for this purpose. None of the Company or any Person controlled by the Company shall be deemed to be an Affiliate of any holder of Shares. 

2.10. “Committee” means the Compensation Committee of the Board of Directors or a subcommittee thereof, or such other
committee designated by the Board to administer the Plan. 
 2.11. “Company Surviving Corporation” has the
meaning provided in Section 2.9(b)(i). 
 2.12. “Consultant” means an independent contractor who performs
services for the Company or a Subsidiary or Affiliate in a capacity other than as an Employee or Director. 
 2.13.
“Director” means any individual who is a member of the Board of Directors of the Company. 
 2.14.
“Disaffiliation” means a Subsidiary’s or Affiliate’s ceasing to be a Subsidiary or Affiliate for any reason (including as a result of a public offering, or a spin-off or sale by the Company, of the stock of the Subsidiary
or Affiliate) or a sale of a division of the Company or a Subsidiary or Affiliate. 
 2.15. “Dividend
Equivalents” means the equivalent value (in cash or Shares) of dividends that would otherwise be paid on the Shares subject to an Award but that have not been issued or delivered, as described in Article XI. 

2.16. “Effective Date” shall have the meaning ascribed to such term in Section 1.1. 

  
 4 

 2.17. “Employee” means any person designated as an employee of the Company,
a Subsidiary and/or an Affiliate on the payroll records thereof. An Employee shall not include any individual during any period he or she is classified or treated by the Company, a Subsidiary or an Affiliate as an independent contractor, a
consultant, or any employee of an employment, consulting, or temporary agency or any other entity other than the Company, a Subsidiary and/or an Affiliate without regard to whether such individual is subsequently determined to have been, or is
subsequently retroactively reclassified as a common-law employee of the Company, a Subsidiary and/or an Affiliate during such period. As further provided in Section 18.4, for purposes of the Plan, upon approval by the Committee, the term
Employee may also include Employees whose employment with the Company, a Subsidiary or an Affiliate has been terminated subsequent to being granted an Award under the Plan. For the avoidance of doubt, a Director who would otherwise be an
“Employee” within the meaning of this Section 2.17 shall be considered an Employee for purposes of the Plan. 

2.18. “Exchange Act” means the Securities Exchange Act of 1934, as it may be amended from time to time, including the
rules and regulations promulgated thereunder and successor provisions and rules and regulations thereto. 
 2.19. “Fair
Market Value” means, if the Shares are listed on a national securities exchange, as of any given date, the closing price for a Share on such date on the Applicable Exchange, or if Shares were not traded on the Applicable Exchange on such
measurement date, then on the next preceding date on which Shares are traded, all as reported by such source as the Committee may select. If the Shares are not listed on a national securities exchange, Fair Market Value shall be determined by the
Committee in its good faith discretion. 
 2.20. “Fiscal Year” means the calendar year, or such other
consecutive twelve-month period as the Committee may select. 
 2.21. “Freestanding SAR” means an SAR that is
granted independently of any Options, as described in Article VII. 
 2.22. “Good Reason” shall have the
definition given such term in a Participant’s Award Agreement, or in the absence of any such definition, as determined in good faith by the Committee. 
 2.23. “Grant Price” means the price established at the time of grant of an SAR pursuant to Article VII, used to determine whether there is any payment due upon exercise of the SAR.

 2.24. “Insider” means an individual who is, on the relevant date, an officer, director or ten percent
(10%) Beneficial Owner of any class of the Company’s equity securities that is registered pursuant to Section 12 of the Exchange Act, as determined by the Committee in accordance with Section 16 of the Exchange Act. 

2.25. “Non-Control Acquisition” means an acquisition (whether by merger, stock purchase, asset purchase or otherwise) by
(a) an employee benefit plan (or a trust forming a part thereof) maintained by (i) the Company or (ii) any corporation or other Person of which fifty percent (50%) or more of its total value or total voting power of its Voting
Securities or equity interests is owned, directly or indirectly, by the Company (a “Related Entity”); (b) the Company 

  
 5 

 
or any Related Entity; (c) any Person in connection with a Non-Control Transaction; or (d) any Person that owns, together with its Affiliates, Beneficial Ownership of fifty percent
(50%) or more of the outstanding Voting Securities of the Company on the Effective Date. 
 2.26. “Non-Control
Transaction” shall have the meaning provided in Section 2.9(b). 
 2.27. “Non-Employee Director”
means a Director who is not an Employee. 
 2.28. “Notice” means notice provided by a Participant to the Company
in a manner prescribed by the Committee. 
 2.29. “Option” or “Stock Option” means a Stock
Option, as described in Article VI. 
 2.30. “Option Price” means the price at which a Share may be purchased by
a Participant pursuant to an Option. 
 2.31. “Other Share-Based Award” means an equity-based or equity-related
Award described in Section 10.1, granted in accordance with the terms and conditions set forth in Article X. 
 2.32.
“Participant” means any eligible individual as set forth in Article V who holds one or more outstanding Awards. 

2.33. “Performance Period” means the period of time during which the performance goals must be met in order to determine
the degree of payout and/or vesting with respect to, or the amount or entitlement to, an Award. 
 2.34. “Performance
Share” means an Award of a performance share granted to a Participant, as described in Article IX. 
 2.35.
“Performance Unit” means an Award of a performance unit granted to a Participant, as described in Article IX. 

2.36. “Person” means “person” as such term is used for purposes of Section 13(d) or 14(d) of the Exchange
Act, including any individual, corporation, limited liability company, partnership, trust, unincorporated organization, government or any agency or political subdivision thereof, or any other entity or any group of persons. 

2.37. “Restricted Stock” means an Award granted to a Participant pursuant to Article VIII. 

2.38. “Restricted Stock Unit” means an Award, whose value is equal to a Share, granted to a Participant pursuant to
Article VIII. 
 2.39. “Rule 16b-3” means Rule 16b-3 under the Exchange Act, or any successor rule, as the same
may be amended from time to time. 

  
 6 

 2.40. “Securities Act” means the Securities Act of 1933, as it may be
amended from time to time, including the rules and regulations promulgated thereunder and successor provisions and rules and regulations thereto. 
 2.41. “Share” means an Ordinary Share of the Company (including any new, additional or different stock or securities resulting from any change in corporate capitalization as listed in
Section 4.3). 
 2.42. “Stock Appreciation Right” or “SAR” means an Award, granted alone
(a “Freestanding SAR”) or in connection with a related Option (a “Tandem SAR”), designated as an SAR, pursuant to the terms of Article VII. 
 2.43. “Subject Person” has the meaning provided in Section 2.9. 
 2.44. “Subplan” means additional incentive compensation plans as may be established by the Board within the parameters and in accordance with the overall terms and provisions of the Plan as may
be needed to facilitate local administration of the Plan in any jurisdiction in which the Company, Subsidiary, or Affiliate operate in and to conform the Plan to the legal requirements of any such jurisdiction or to allow for favorable tax treatment
under any applicable provision of tax law. 
 2.45. “Subsidiary” means any present or future corporation which
is or would be a subsidiary of the Company as determined by the Committee. 
 2.46. “Substitute Awards” means
Awards granted or Shares issued by the Company in assumption of, or in substitution or exchange for, options or other awards previously granted, or the right or obligation to grant future options or other awards, by a company acquired by the
Company, a Subsidiary and/or an Affiliate or with which the Company, a Subsidiary and/or an Affiliate combines, or otherwise in connection with any merger, consolidation, acquisition of property or stock, or reorganization involving the Company, a
Subsidiary or an Affiliate. 
 2.47. “Tandem SAR” means an SAR that is granted in connection with a related
Option pursuant to Article VII. 
 2.48. “Termination” means the time when a Participant ceases the performance
of services for the Company, any Affiliate or Subsidiary, as applicable, for any reason, with or without Cause, including a Termination by resignation, discharge, death, Disability or Retirement, but excluding (a) a Termination where there is a
simultaneous reemployment (or commencement of service) or continuing employment (or service) of a Participant by the Company, Affiliate or any Subsidiary, (b) at the discretion of the Committee, a Termination that results in a temporary
severance, and (c) at the discretion of the Committee, a Termination of an Employee that is immediately followed by the Participant’s service as a Non-Employee Director. 

2.49. “Voting Securities” shall mean, with respect to any Person that is a corporation, all outstanding voting securities
of such Person entitled to vote generally in the election of the board of directors of such Person. 

  
 7 

 ARTICLE III. 
 ADMINISTRATION 
 3.1. General. The Committee shall have exclusive
authority to operate, manage and administer the Plan including but not limited to authorizing and administering Subplans all in accordance with its terms and conditions. Notwithstanding the foregoing, in its absolute discretion, the Board may at any
time and from time to time exercise any and all rights, duties and responsibilities of the Committee under the Plan, including establishing procedures to be followed by the Committee, but excluding matters which under any applicable law, regulation
or rule, including any exemptive rule under Section 16 of the Exchange Act (including Rule 16b-3), are required to be determined in the sole discretion of the Committee. If and to the extent that the Committee does not exist or cannot function,
the Board may take any action under the Plan that would otherwise be the responsibility of the Committee, subject to the limitations set forth in the immediately preceding sentence. 

3.2. Committee. The members of the Committee shall be appointed from time to time by, and shall serve at the discretion of, the
Board of Directors. 
 3.3. Authority of the Committee. The Committee shall have full discretionary authority to grant or,
when so restricted by applicable law, recommend the Board to grant, pursuant to the terms of the Plan, Awards to those individuals who are eligible to receive Awards under the Plan. Except as limited by law or by the Articles of Association of the
Company, and subject to the provisions herein, the Committee shall have full power, in accordance with the other terms and provisions of the Plan, to: 
 (a) select Employees, Non-Employee Directors and Consultants who may receive Awards under the Plan and become Participants; 
 (b) determine eligibility for participation in the Plan and decide all questions concerning eligibility for, and the amount of, Awards under the Plan; 

(c) determine the sizes and types of Awards; 
 (d) determine the terms and conditions of Awards, including the Option Prices of Options and the Grant Prices of SARs; 
 (e) grant Awards as an alternative to, or as the form of payment for grants or rights earned or payable under, other bonus or compensation plans, arrangements or policies of the Company or a Subsidiary or
Affiliate; 
 (f) grant Substitute Awards on such terms and conditions as the Committee may prescribe; 

(g) make all determinations under the Plan concerning Termination of any Participant’s employment or service with the Company or a
Subsidiary or Affiliate, including whether such Termination occurs by reason of Cause, Good Reason, disability, retirement or in connection with a Change of Control and whether a leave constitutes a Termination; 

  
 8 

 (h) determine whether a Change of Control shall have occurred; 

(i) construe and interpret the Plan and any agreement or instrument entered into under the Plan, including any Award Agreement;

 (j) establish and administer any terms, conditions, restrictions, limitations, forfeiture, vesting or exercise schedule, and
other provisions of or relating to any Award; 
 (k) establish and administer any performance goals in connection with any
Awards, including performance criteria and applicable Performance Periods, determine the extent to which any performance goals and/or other terms and conditions of an Award are attained or are not attained; 

(l) construe any ambiguous provisions, correct any defects, supply any omissions and reconcile any inconsistencies in the Plan and/or any
Award Agreement or any other instrument relating to any Awards; 
 (m) establish, adopt, amend, waive and/or rescind rules,
regulations, procedures, guidelines, forms and/or instruments for the Plan’s operation or administration; 
 (n) make all
valuation determinations relating to Awards and the payment or settlement thereof; 
 (o) grant waivers of terms, conditions,
restrictions and limitations under the Plan or applicable to any Award, or accelerate the vesting or exercisability of any Award; 
 (p) subject to the provisions of Article XV, amend or adjust the terms and conditions of any outstanding Award and/or adjust the number and/or class of shares of stock subject to any outstanding Award;

 (q) at any time and from time to time after the granting of an Award, specify such additional terms, conditions and
restrictions with respect to such Award as may be deemed necessary or appropriate to ensure compliance with any and all applicable laws or rules, including terms, restrictions and conditions for compliance with applicable securities laws or listing
rules, methods of withholding or providing for the payment of required taxes and restrictions regarding a Participant’s ability to exercise Options through a cashless (broker-assisted) exercise; 

(r) offer to buy out an Award previously granted, based on such terms and conditions as the Committee shall establish with and communicate
to the Participant at the time such offer is made; 
 (s) determine whether, and to what extent and under what circumstances
Awards may be settled in cash, Shares or other property or canceled or suspended; 
 (t) establish any “blackout”
period that the Committee in its sole discretion deems necessary or advisable; and 

  
 9 

 (u) exercise all such other authorities, take all such other actions and make all such other
determinations as it deems necessary or advisable for the proper operation and/or administration of the Plan. 
 3.4. Award
Agreements. The Committee shall, subject to applicable laws and rules, determine the date an Award is granted. Each Award shall be evidenced by an Award Agreement; however, two or more Awards granted to a single Participant may be
combined in a single Award Agreement. An Award Agreement shall not be a precondition to the granting of an Award; provided, however, that (a) the Committee may, but need not, require as a condition to any Award Agreement’s
effectiveness, that such Award Agreement be executed on behalf of the Company and/or by the Participant to whom the Award evidenced thereby shall have been granted (including by electronic signature or other electronic indication of acceptance), and
such executed Award Agreement be delivered to the Company, and (b) no person shall have any rights under any Award unless and until the Participant to whom such Award shall have been granted has complied with the applicable terms and conditions
of the Award. The Committee shall prescribe the form of all Award Agreements, and, subject to the terms and conditions of the Plan, shall determine the content of all Award Agreements. Any Award Agreement may be supplemented or amended in writing
from time to time as approved by the Committee; provided that the terms and conditions of any such Award Agreement as supplemented or amended are not inconsistent with the provisions of the Plan. In the event of any dispute or discrepancy
concerning the terms of an Award, the records of the Committee or its designee shall be determinative. 
 3.5. Discretionary
Authority; Decisions Binding. The Committee shall have full discretionary authority in all matters related to the discharge of its responsibilities and the exercise of its authority under the Plan. All determinations, decisions, actions and
interpretations by the Committee with respect to the Plan and any Award Agreement, and all related orders and resolutions of the Committee shall be final, conclusive and binding on all Participants, the Company and its shareholders, any Subsidiary
or Affiliate and all persons having or claiming to have any right or interest in or under the Plan and/or any Award Agreement. The Committee shall consider such factors as it deems relevant to making or taking such decisions, determinations, actions
and interpretations, including the recommendations or advice of any Director or officer or employee of the Company, any director, officer or employee of a Subsidiary or Affiliate and such attorneys, consultants and accountants as the Committee may
select. A Participant or other holder of an Award may contest a decision or action by the Committee with respect to such person or Award only on the grounds that such decision or action was arbitrary or capricious or was unlawful, and any review of
such decision or action shall be limited to determining whether the Committee’s decision or action was arbitrary or capricious or was unlawful. 
 3.6. Attorneys; Consultants. The Committee may consult with counsel who may be counsel to the Company. The Committee may, with the approval of the Board, employ such other attorneys and/or
consultants, accountants, appraisers, brokers, agents and other persons, any of whom may be an Employee, as the Committee deems necessary or appropriate. The Committee, the Company and its officers and Directors shall be entitled to rely upon the
advice, opinions or valuations of any such persons. The Committee shall not incur any liability for any action taken in good faith in reliance upon the advice of such counsel or other persons. 

  
 10 

 3.7. Delegation of Administration. Except to the extent prohibited by applicable law,
including any applicable exemptive rule under Section 16 of the Exchange Act (including Rule 16b-3), or the applicable rules of a stock exchange, the Committee may, in its discretion, allocate all or any portion of its responsibilities and
powers under this Article III to any one or more of its members and/or delegate all or any part of its responsibilities and powers under this Article III to any person or persons selected by it; provided, however, that the Committee
may not delegate its authority to correct defects, omissions or inconsistencies in the Plan. Any such authority delegated or allocated by the Committee under this Section 3.7 shall be exercised in accordance with the terms and conditions of the
Plan and any rules, regulations or administrative guidelines that may from time to time be established by the Committee, and any such allocation or delegation may be revoked by the Committee at any time. 

ARTICLE IV. 

SHARES SUBJECT TO THE PLAN 
 4.1. Number of Shares Available for Grants. The shares of stock subject to Awards granted under the Plan shall be Shares. Such Shares subject to the Plan may be either authorized and unissued
shares (which will not be subject to preemptive rights) or previously issued shares acquired by the Company or any Subsidiary. Subject to adjustment as provided in Section 4.3, the total number of Shares that may be delivered pursuant to Awards
under the Plan shall be 9,500 Shares. 
 4.2. Rules for Calculating Shares Delivered. If (a) any Shares are subject
to an Option, SAR, or other Award which for any reason expires or is terminated or canceled without having been fully exercised or satisfied, or are subject to any Restricted Stock Award (including any Shares subject to a Participant’s
Restricted Stock Award that are repurchased by the Company at the Participant’s cost), Restricted Stock Unit Award or other Award granted under the Plan which are forfeited, or (b) any Award based on Shares is settled for cash, expires or
otherwise terminates without the issuance of such Shares, the Shares subject to such Award shall, to the extent of any such expiration, termination, cancellation, forfeiture or cash settlement, be available for delivery in connection with future
Awards under the Plan. If the Option Price of any Option and/or tax withholding obligations relating to any Award are satisfied by delivering Shares to the Company (by either actual delivery or by attestation), only the number of Shares issued net
of the Shares delivered or attested to shall be deemed delivered for purposes of the limits set forth in Section 4.1. To the extent any Shares subject to an Award are withheld to satisfy the Option Price (in the case of an Option) and/or the
tax withholding obligations relating to such Award, such Shares shall not be deemed to have been delivered for purposes of the limits set forth in Section 4.1. Upon the exercise of a SAR, only the number of Shares, if any, issued upon such
exercise shall reduce the number of Shares available for delivery under the Plan. Any Shares delivered under the Plan upon exercise or satisfaction of Substitute Awards shall not reduce the Shares available for delivery under the Plan. 

4.3. Adjustment Provisions. In the event of a stock dividend, stock split, reverse stock split, share combination or exchange, or
recapitalization or similar event affecting the capital structure of the Company (each a “Share Change”), or a merger, amalgamation, consolidation, 

  
 11 

 
acquisition of property or shares, separation, spin-off, split-up, other distribution of stock or property (including any extraordinary cash or stock dividend), reorganization, stock rights
offering, liquidation, Disaffiliation, or similar event affecting the Company or any Subsidiary (each, a “Corporate Transaction”), the Committee or the Board shall make such substitutions or adjustments as it deems appropriate and
equitable to (A) the aggregate number, class and kind of Shares or other securities reserved for issuance and delivery under the Plan, (B) the number, class and kind of Shares or other securities subject to outstanding Awards; and
(C) the Option Price, Grant Price or other price of securities subject to outstanding Options, Stock Appreciation Rights and, to the extent applicable, other Awards; provided, however, that the number of Shares subject to any
Award shall always be a whole number. In the case of Corporate Transactions, such adjustments may include, without limitation, (1) the cancellation of outstanding Awards in exchange for payments of cash, property or a combination thereof having
an aggregate value equal to the value of such Awards, as determined by the Committee or the Board in its discretion (it being understood that in the case of a Corporate Transaction with respect to which holders of Shares receive consideration other
than publicly traded equity securities of the ultimate surviving entity, any such determination by the Committee that the value of an Option or Stock Appreciation Right shall for this purpose be deemed to be equal to the excess, if any, of the value
of the consideration being paid for each Share pursuant to such Corporate Transaction over the exercise price of such Option or Stock Appreciation Right shall conclusively be deemed valid); (2) the substitution of other property (including,
without limitation, cash or other securities of the Company and securities of entities other than the Company) for the Shares subject to outstanding Awards; and (3) in connection with any Disaffiliation, arranging for the assumption of Awards,
or replacement of Awards with new awards based on other property or other securities (including other securities of the Company and securities of entities other than the Company), by the affected Subsidiary, Affiliate, or division or by the entity
that controls such Subsidiary, Affiliate, or division following such Disaffiliation (as well as any corresponding adjustments to Awards that remain based upon Company securities). The Committee shall also make appropriate adjustments and
modifications in the terms of any outstanding Awards to reflect, or related to, any such events, adjustments, substitutions or changes. All determinations of the Committee as to adjustments, substitutions and changes, if any, under this
Section 4.3 shall be conclusive and binding on the Participants. 
 4.4. No Limitation on Corporate Actions. The
existence of the Plan and any Awards granted hereunder shall not affect in any way the right or power of the Company, any Subsidiary or any Affiliate to make or authorize any adjustment, recapitalization, reorganization or other change in its
capital structure or business structure, any merger or consolidation, any issuance of debt, preferred or prior preference stock ahead of or affecting the Shares, additional shares of capital stock or other securities or subscription rights thereto,
any dissolution or liquidation, any sale or transfer of all or part of its assets or business or any other corporate act or proceeding. 

  
 12 

 ARTICLE V. 
 ELIGIBILITY AND PARTICIPATION 
 5.1. Eligibility. Employees,
Non-Employee Directors and Consultants shall be eligible to become Participants and receive Awards in accordance with the terms and conditions of the Plan. 
 5.2. Actual Participation. Subject to the provisions of the Plan, the Committee may, from time to time, select Participants from all eligible Employees, Non-Employee Directors and Consultants and
shall determine the nature and amount of each Award. 
 ARTICLE VI. 

STOCK OPTIONS 
 6.1. Grant of Options. Subject to the terms and provisions of the Plan, Options may be granted to Participants in such number, and upon such terms, and at any time and from time to time as shall be
determined by the Committee. The Committee may grant an Option or provide for the grant of an Option, either from time to time in the discretion of the Committee or automatically upon the occurrence of specified events, including the achievement of
performance goals, the satisfaction of an event or condition within the control of the recipient of the Option or within the control of others. The granting of an Option shall take place when the Committee (or its designee) by resolution, written
consent or other appropriate action determines to grant such Option for a particular number of Shares to a particular Participant at a particular Option Price, or such later date as the Committee (or such designee) shall provide in such resolution,
consent or action. 
 6.2. Award Agreement. Each Option grant shall be evidenced by an Award Agreement that shall specify
the Option Price, the maximum duration of the Option, the number of Shares to which the Option pertains, the conditions upon which the Option shall become exercisable and such other provisions as the Committee shall determine, which are not
inconsistent with the terms of the Plan. 
 6.3. Option Price. The Option Price for each Option shall be determined by the
Committee and set forth in the Award Agreement; provided that Substitute Awards or Awards granted in connection with an adjustment provided for in Section 4.3, in the form of stock options, shall have an Option Price per Share that is
intended to maintain the economic value of the Award that was replaced or adjusted, as determined by the Committee. 
 6.4.
Duration of Options. Each Option granted to a Participant shall expire at such time as the Committee shall determine at the time of grant and set forth in the Award Agreement. 

6.5. Exercise of Options. Options shall be exercisable at such times and be subject to such restrictions and conditions as the
Committee shall in each instance determine and set forth in the Award Agreement, which need not be the same for each grant or for each Option or Participant. An Award Agreement may provide that the period of time over which an Option may be
exercised shall be automatically extended if on the scheduled expiration date of such 

  
 13 

 
Option the Participant’s exercise of such Option would violate an applicable law; provided, however, that during such extended exercise period the Option may only be exercised
to the extent the Option was exercisable in accordance with its terms immediately prior to such scheduled expiration date; provided further, however, that such extended exercise period shall end not later than thirty
(30) days after the exercise of such Option first would no longer violate such law. 
 6.6. Payment. Options shall be
exercised by the delivery of a written notice of exercise to the Company, in a form specified or accepted by the Committee, or by complying with any alternative exercise procedures that may be authorized by the Committee, setting forth the number of
Shares with respect to which the Option is to be exercised, accompanied by full payment for such Shares, which shall include applicable taxes, if any, in accordance with Article XVI. The Option Price upon exercise of any Option shall be payable to
the Company in full by certified or bank check or such other instrument as the Committee may accept. If approved by the Committee, and subject to any such terms, conditions and limitations as the Committee may prescribe and to the extent permitted
by applicable law, payment of the Option Price, in full or in part, may also be made as follows: 
 (a) Payment
may be made in the form of unrestricted and unencumbered Shares (by actual delivery of such Shares or by attestation) already owned by the Participant exercising such Option, or by such Participant and his or her spouse jointly (based on the Fair
Market Value of the Shares on the date the Option is exercised); provided, however, that such already owned Shares must have been either held by the Participant for at least six (6) months at the time of exercise or purchased on
the open market. 
 (b) Payment may be made by delivering a properly executed exercise notice to the Company,
together with a copy of irrevocable instructions to a broker to deliver promptly to the Company the amount of sale or loan proceeds necessary to pay the Option Price, and, if requested, the amount of any federal, state, local or non-United States
withholding taxes. To facilitate the foregoing, the Company may, to the extent permitted by applicable law, enter into agreements for coordinated procedures with one or more brokerage firms. 

(c) Payment may be made by instructing the Committee to withhold a number of Shares otherwise deliverable to the
Participant pursuant to the Option having an aggregate Fair Market Value on the date of exercise equal to the product of: (i) Option Price multiplied by (ii) the number of Shares in respect of which the Option shall have been exercised.

 (d) Payment may be made by any other method approved or accepted by the Committee in its discretion.

 Subject to any governing rules or regulations, as soon as practicable after receipt of a written notification of exercise and
full payment in accordance with the preceding provisions of this Section 6.6 and satisfaction of tax obligations in accordance with Article XVI, the Company shall deliver to the Participant exercising an Option, in the Participant’s name,

  
 14 

 
evidence of book entry Shares, or, upon the Participant’s request, Share certificates, in an appropriate amount based upon the number of Shares purchased under the Option, subject to
Section 18.10. Unless otherwise determined by the Committee, all payments under all of the methods described above shall be paid in United States dollars. 
 6.8. Rights as a Shareholder. No Participant or other person shall become the beneficial owner of any Shares subject to an Option, nor have any rights to dividends or other rights of a shareholder
with respect to any such Shares, until the Participant has actually received such Shares following exercise of his or her Option in accordance with the provisions of the Plan and the applicable Award Agreement. 

6.9. Termination of Employment or Service. Except as otherwise provided in the Award Agreement, an Option may be exercised only to
the extent that it is then exercisable, and if at all times during the period beginning with the date of granting of such Option and ending on the date of exercise of such Option the Participant is an Employee or Non-Employee Director, and shall
terminate 120 days following the Termination of the Participant. An Option shall cease to become exercisable 120 days following a Termination of the holder thereof. Notwithstanding the foregoing provisions of this Section 6.9 to the contrary,
the Committee may determine in its discretion that an Option may be exercised following any such Termination, whether or not exercisable at the time of such Termination; provided, however, that in no event may an Option be exercised
after the expiration date of such Option specified in the applicable Award Agreement, except as determined by the Committee. 

ARTICLE VII. 

STOCK APPRECIATION RIGHTS 
 7.1. Grant of SARs. Subject to the terms and conditions of the Plan, SARs may be granted to Participants at any time and from time to time as shall be determined by the Committee. The Committee may
grant an SAR (a) in connection and simultaneously with the grant of an Option (a Tandem SAR) or (b) independent of, and unrelated to, an Option (a Freestanding SAR). The Committee shall have complete discretion in determining the number of
Shares to which an SAR pertains (subject to Article IV) and, consistent with the provisions of the Plan, in determining the terms and conditions pertaining to any SAR. 
 7.2. Grant Price The Grant Price for each SAR shall be determined by the Committee and set forth in the Award Agreement, subject to the limitations of this Section 7.2. The Grant Price for
each Freestanding SAR shall be not less than one hundred percent (100%) of the Fair Market Value of a Share on the date such Freestanding SAR is granted, except in the case of Substitute Awards or Awards granted in connection with an adjustment
provided for in Section 4.3. The Grant Price of a Tandem SAR shall be equal to the Option Price of the related Option. 

7.3. 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 shall be exercisable only when and to the extent the related Option is exercisable and may be exercised only with respect to the Shares for which the
related Option is then exercisable. A Tandem SAR shall entitle a Participant to elect, in the 

  
 15 

 
manner set forth in the Plan and the applicable Award Agreement, in lieu of exercising his or her unexercised related Option for all or a portion of the Shares for which such Option is then
exercisable pursuant to its terms, to surrender such Option to the Company with respect to any or all of such Shares and to receive from the Company in exchange therefor a payment described in Section 7.7. An Option with respect to which a
Participant has elected to exercise a Tandem SAR shall, to the extent of the Shares covered by such exercise, be canceled automatically and surrendered to the Company. Such Option shall thereafter remain exercisable according to its terms only with
respect to the number of Shares as to which it would otherwise be exercisable, less the number of Shares with respect to which such Tandem SAR has been so exercised. 
 7.4. Exercise of Freestanding SARs. Freestanding SARs may be exercised upon whatever terms and conditions the Committee, in its sole discretion, in accordance with the Plan, determines and sets
forth in the Award Agreement. An Agreement may provide that the period of time over which a Freestanding SAR may be exercised shall be automatically extended if on the scheduled expiration date of such SAR the Participant’s exercise of such SAR
would violate an applicable law; provided, however, that during such extended exercise period the SAR may only be exercised to the extent the SAR was exercisable in accordance with its terms immediately prior to such scheduled
expiration date; provided further, however, that such extended exercise period shall end not later than thirty (30) days after the exercise of such SAR first would no longer violate such law. 

7.5. Award Agreement. Each SAR grant shall be evidenced by an Award Agreement that shall specify the number of Shares to which the
SAR pertains, the Grant Price, the term of the SAR, and such other terms and conditions as the Committee shall determine in accordance with the Plan. 
 7.6. Term of SARs. The term of an SAR granted under the Plan shall be determined by the Committee, in its sole discretion; provided, however, that the term of any Tandem SAR shall be
the same as the related Option. 
 7.7. Payment of SAR Amount. An election to exercise SARs shall be deemed to have been
made on the date of Notice of such election to the Company. Upon exercise of an SAR, a Participant shall be entitled to receive payment from the Company in an amount determined by multiplying: 

(a) The excess of the Fair Market Value of a Share on the date of exercise over the Grant Price of the SAR; by 

(b) The number of Shares with respect to which the SAR is exercised. 
 Notwithstanding the foregoing provisions of this Section 7.7 to the contrary, the Committee may establish and set forth in the applicable Award Agreement a maximum amount per Share that will be
payable upon the exercise of an SAR. At the discretion of the Committee, such payment upon exercise of an SAR shall be in cash, in Shares of equivalent Fair Market Value, or in some combination thereof. 

7.8. Rights as a Shareholder. A Participant receiving an SAR shall have the rights of a Shareholder only as to Shares, if any,
actually issued to such Participant upon satisfaction or 

  
 16 

 
achievement of the terms and conditions of the Award, and in accordance with the provisions of the Plan and the applicable Award Agreement, and not with respect to Shares to which such Award
relates but which are not actually issued to such Participant. 
 7.9. Termination of Employment or Service. Each SAR
Award Agreement shall set forth the extent to which the Participant shall have the right to exercise the SAR following such Participant’s Termination, if at all; provided, however, that in no event may a SAR be exercised after the
expiration date of such SAR specified in the applicable Award Agreement, except as provided in the last sentence of Section 6.5 (in the case of Tandem SARs) or in the last sentence of Section 7.4 (in the case of Freestanding SARs). Such
provisions shall be determined in the sole discretion of the Committee, need not be uniform among all SARs issued pursuant to the Plan, and may reflect distinctions based on the reasons for Termination. 

ARTICLE VIII. 

RESTRICTED STOCK AND RESTRICTED STOCK UNITS 
 8.1. Awards of Restricted Stock and Restricted Stock Units. 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
and/or Restricted Stock Units to Participants in such amounts as the Committee shall determine. Subject to the terms and conditions of this Article VIII and the Award Agreement, upon delivery of Shares of Restricted Stock to a Participant, or
creation of a book entry evidencing a Participant’s ownership of Shares of Restricted Stock, pursuant to Section 8.6, the Participant shall have all of the rights of a shareholder with respect to such Shares, subject to the terms and
restrictions set forth in this Article VIII or the applicable Award Agreement or as determined by the Committee. Restricted Stock Units shall be similar to Restricted Stock, except no Shares are actually awarded to a Participant who is granted
Restricted Stock Units on the date of grant, and such Participant shall have no rights of a shareholder with respect to such Restricted Stock Units. 
 8.2. Award Agreement. Each Restricted Stock and/or Restricted Stock Unit Award shall be evidenced by an Award Agreement that shall specify the Period of Restriction, the number of Shares of
Restricted Stock or the number of Restricted Stock Units granted, and such other provisions as the Committee shall determine in accordance with the Plan. Any Restricted Stock Award must be accepted by the Participant within a period of ninety
(90) days (or such shorter period as determined by the Committee at the time of award) after the award date, by executing such Restricted Stock Award Agreement and providing the Committee or its designee a copy of such executed Award Agreement
and payment of the applicable purchase price of such Shares of Restricted Stock, if any, as determined by the Committee. 
 8.3.
Nontransferability of Restricted Stock. Except as provided in this Article VIII, Shares of Restricted Stock may not be sold, transferred, pledged, assigned, encumbered, alienated, hypothecated or otherwise disposed of until the end of the
applicable Period of Restriction established by the Committee and specified in the Restricted Stock Award Agreement. 

  
 17 

 8.4. Period of Restriction and Other Restrictions. The Period of Restriction shall
lapse based on continuing service as a Non-Employee Director or Consultant or continuing employment with the Company, a Subsidiary or an Affiliate, the achievement of performance goals, the satisfaction of other conditions or restrictions or upon
the occurrence of other events, in each case, as determined by the Committee, at its discretion, and stated in the Award Agreement. 
 8.5. Delivery of Shares, Payment of Restricted Stock Units. Subject to Section 18.10, after the last day of the Period of Restriction applicable to a Participant’s Shares of Restricted
Stock, and after all conditions and restrictions applicable to such Shares of Restricted Stock have been satisfied or lapse (including satisfaction of any applicable withholding tax obligations), pursuant to the applicable Award Agreement, such
Shares of Restricted Stock shall become freely transferable by such Participant. After the last day of the Period of Restriction applicable to a Participant’s Restricted Stock Units, and after all conditions and restrictions applicable to
Restricted Stock Units have been satisfied or lapse (including satisfaction of any applicable withholding tax obligations), pursuant to the applicable Award Agreement, such Restricted Stock Units shall be settled by delivery of Shares, a cash
payment determined by reference to the then-current Fair Market Value of Shares or a combination of Shares and such cash payment as the Committee, in its sole discretion, shall determine, either by the terms of the Award Agreement or otherwise.

 8.6. Forms of Restricted Stock Awards. Each Participant who receives an Award of Shares of Restricted Stock shall be
issued a stock certificate or certificates evidencing the Shares covered by such Award registered in the name of such Participant, which certificate or certificates may contain an appropriate legend. The Committee may require a Participant who
receives a certificate or certificates evidencing a Restricted Stock Award to immediately deposit such certificate or certificates, together with a stock power or other appropriate instrument of transfer, endorsed in blank by the Participant, with
signatures guaranteed in accordance with the Exchange Act if required by the Committee, with the Secretary of the Company or an escrow holder as provided in the immediately following sentence. The Secretary of the Company or such escrow holder as
the Committee may appoint shall retain physical custody of each certificate representing a Restricted Stock Award until the Period of Restriction and any other restrictions imposed by the Committee or under the Award Agreement with respect to the
Shares evidenced by such certificate expire or shall have been removed. The foregoing to the contrary notwithstanding, the Committee may, in its discretion, provide that a Participant’s ownership of Shares of Restricted Stock prior to the lapse
of the Period of Restriction or any other applicable restrictions shall, in lieu of such certificates, be evidenced by a “book entry” (i.e., a computerized or manual entry) in the records of the Company or its designated agent in
the name of the Participant who has received such Award. Such records of the Company or such agent shall, absent manifest error, be binding on all Participants who receive Restricted Stock Awards evidenced in such manner. The holding of Shares of
Restricted Stock by the Company or such an escrow holder, or the use of book entries to evidence the ownership of Shares of Restricted Stock, in accordance with this Section 8.6, shall not affect the rights of Participants as owners of the
Shares of Restricted Stock awarded to them, nor affect the restrictions applicable to such shares under the Award Agreement or the Plan, including the Period of Restriction. 

  
 18 

 8.7. Voting Rights. Unless otherwise determined by the Committee and set forth in a
Participant’s Award Agreement, to the extent permitted or required by law, as determined by the Committee, Participants holding Shares of Restricted Stock may be granted the right to exercise full voting rights with respect to those Shares
during the Period of Restriction. A Participant shall have no voting rights with respect to any Restricted Stock Units. 
 8.8.
Dividends and Other Distributions. During the Period of Restriction, Participants holding Shares of Restricted Stock shall be credited with any cash dividends paid with respect to such Shares while they are so held, unless determined
otherwise by the Committee and set forth in the Award Agreement. The Committee may apply any restrictions to such dividends that the Committee deems appropriate. Except as set forth in the Award Agreement, in the event of (a) any adjustment as
provided in Section 4.3, or (b) any shares or securities are received as a dividend, or an extraordinary dividend is paid in cash, on Shares of Restricted Stock, any new or additional Shares or securities or any extraordinary dividends
paid in cash received by a recipient of Restricted Stock shall be subject to the same terms and conditions, including the Period of Restriction, as relate to the original Shares of Restricted Stock. 

8.9. Termination of Employment or Service. Except as otherwise provided in this Section 8.9, during the Period of Restriction,
any Restricted Stock Units and/or Shares of Restricted Stock held by a Participant shall be forfeited and revert to the Company (or, if Shares of Restricted Sock were sold to the Participant, the Participant shall be required to resell such Shares
to the Company at cost) upon the Participant’s Termination or the failure to meet or satisfy any applicable performance goals or other terms, conditions and restrictions to the extent set forth in the applicable Award Agreement. Each applicable
Award Agreement shall set forth the extent to which, if any, the Participant shall have the right to retain Restricted Stock Units and/or Shares of Restricted Stock following such Participant’s Termination. Such provisions shall be determined
in the sole discretion of the Committee, shall be included in the applicable Award Agreement, need not be uniform among all such Awards issued pursuant to the Plan, and may reflect distinctions based on the reasons for, or circumstances of, such
Termination. 
 ARTICLE IX. 
 PERFORMANCE UNITS, PERFORMANCE SHARES, AND CASH-BASED AWARDS 
 9.1. Grant
of Performance Units, Performance Shares and Cash-Based Awards. Subject to the terms of the Plan, Performance Units, Performance Shares, and/or Cash-Based Awards may be granted to Participants in such amounts and upon such terms, and at any time
and from time to time, as shall be determined by the Committee, in accordance with the Plan. A Performance Unit, Performance Share or Cash-Based Award entitles the Participant who receives such Award to receive Shares or cash upon the attainment of
applicable performance goals for the applicable Performance Period, and/or satisfaction of other terms and conditions, in each case determined by the Committee, and which may be set forth in the Award Agreement. Such entitlements of a Participant
with respect to his or her outstanding Performance Unit, Performance Share or Cash-Based Award shall be reflected by a bookkeeping entry in the records of the Company, unless otherwise provided by the Award Agreement. The terms and conditions of
such Awards shall be consistent with the Plan and set forth in the Award 

  
 19 

 
Agreement and need not be uniform among all such Awards or all Participants receiving such Awards. 
 9.2. Earned Performance Shares, Performance Units and Cash-Based Awards. Performance Shares, Performance Units and Cash-Based Awards shall become earned, in whole or in part, based upon the
attainment of performance goals specified by the Committee and/or the occurrence of any event or events and/or satisfaction of such terms and conditions, including a Change of Control, as the Committee shall determine, either at or after the Grant
Date. The Committee shall determine the extent to which any applicable performance goals and/or other terms and conditions of a Performance Unit, Performance Share or Cash-Based Award are attained or not attained following conclusion of the
applicable Performance Period. The Committee may, in its discretion, waive any such performance goals and/or other terms and conditions relating to any such Award. 
 9.3. Form and Timing of Payment of Performance Units, Performance Shares and Cash-Based Awards. Payment of earned Performance Units, Performance Shares and Cash-Based Awards shall be as determined
by the Committee and as set forth in the Award Agreement. Subject to the terms of the Plan, the Committee, in its sole discretion, may pay earned Performance Units, Performance Shares and Cash-Based Awards in the form of cash or in Shares (or in a
combination thereof) which have an aggregate Fair Market Value equal to the value of the earned Performance Units, Performance Shares or Cash-Based Awards following conclusion of the Performance Period and the Committee’s determination of
attainment of applicable performance goals and/or other terms and conditions in accordance with Section 9.2. Such Shares may be granted subject to any restrictions that may be imposed by the Committee, including a Period of Restriction or
mandatory deferral. The determination of the Committee with respect to the form of payment of such Awards shall be set forth in the Award Agreement pertaining to the grant of the Award. 

9.4. Rights as a Shareholder. A Participant receiving a Performance Unit, Performance Share or Cash-Based Award shall have the
rights of a shareholder only as to Shares, if any, actually received by the Participant upon satisfaction or achievement of the terms and conditions of such Award and not with respect to Shares subject to the Award but not actually issued to such
Participant. 
 9.5. Termination of Employment or Service. Each Award Agreement shall set forth the extent to which the
Participant shall have the right to retain Performance Units, Performance Shares and/or Cash-Based Award following such Participant’s Termination. Such provisions shall be determined in the sole discretion of the Committee, shall be included in
the applicable Award Agreement, need not be uniform among all such Awards issued pursuant to the Plan, and may reflect distinctions based on the reasons for Termination. 
 ARTICLE X. 
 OTHER SHARE-BASED AWARDS 

10.1. Other Share-Based Awards. The Committee may grant types of equity-based or equity-related Awards not otherwise described by
the terms of the Plan (including the grant or 

  
 20 

 
offer for sale of unrestricted Shares), in such amounts (subject to Article IV) and subject to such terms and conditions, as the Committee shall determine. Such Other Share-Based Awards may
involve the transfer of actual Shares to Participants, or payment in cash or otherwise of amounts based on the value of Shares and may include Awards designed to comply with or take advantage of the applicable local laws of jurisdictions in which
the Participants are located. 
 10.2. Value of Other Share-Based Awards. Each Other Share-Based Award shall be expressed
in terms of Shares or units based on Shares, as determined by the Committee. The Committee may establish performance goals in its discretion, and any such performance goals shall be set forth in the applicable Award Agreement. If the Committee
exercises its discretion to establish performance goals, the number and/or value of Other Share-Based Awards that will be paid out to the Participant will depend on the extent to which such performance goals are met. 

10.3. Payment of Other Share-Based Awards. Payment, if any, with respect to an Other Share-Based Award shall be made in accordance
with the terms of the Award, as set forth in the Award Agreement, in cash or Shares as the Committee determines. 
 10.4.
Termination of Employment or Service. The Committee shall determine the extent to which the Participant shall have the right to receive Other Share-Based Awards following the Participant’s Termination, if at all. Such provisions shall be
determined in the sole discretion of the Committee, such provisions may be included in the applicable Award Agreement, but need not be uniform among all Other Share-Based Awards issued pursuant to the Plan, and may reflect distinctions based on the
reasons for Termination. 
 ARTICLE XI. 
 DIVIDEND EQUIVALENTS 
 11.1. Dividend Equivalents. Unless otherwise
provided by the Committee, no adjustment shall be made in the Shares issuable or taken into account under Awards on account of cash dividends that may be paid or other rights that may be issued to the holders of Shares prior to issuance of such
Shares under such Award. The Committee may grant Dividend Equivalents based on the dividends declared on Shares that are subject to any Award, including any Award the payment or settlement of which is deferred pursuant to Section 18.6. Dividend
Equivalents may be credited as of the dividend payment dates, during the period between the date the Award is granted and the date the Award becomes payable or terminates or expires. Dividend Equivalents may be subject to any limitations and/or
restrictions determined by the Committee. Dividend Equivalents shall be converted to cash or additional Shares by such formula and at such time, and shall be paid at such times, as may be determined by the Committee. 

  
 21 

 ARTICLE XII. 
 TRANSFERABILITY OF AWARDS; BENEFICIARY DESIGNATION 
 12.1.
Transferability of Awards. Except as otherwise provided in Section 8.5 or Section 12.2 or a Participant’s Award Agreement or otherwise determined at any time by the Committee, no Award granted under the Plan may be sold,
transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution; provided that the Committee may permit further transferability, on a general or a specific basis, and may
impose conditions and limitations on any permitted transferability, subject to any applicable Period of Restriction. Further, except as otherwise provided in a Participant’s Award Agreement or otherwise determined at any time by the Committee,
or unless the Committee decides to permit further transferability, subject any applicable Period of Restriction, all Awards granted to a Participant under the Plan, and all rights with respect to such Awards, shall be exercisable or available during
his or her lifetime only by or to such Participant. With respect to those Awards, if any, that are permitted to be transferred to another individual, references in the Plan to exercise or payment related to such Awards by or to the Participant shall
be deemed to include, as determined by the Committee, the Participant’s permitted transferee. In the event any Award is exercised by or otherwise paid to the executors, administrators, heirs or distributees of the estate of a deceased
Participant, or such a Participant’s beneficiary, or the transferee of an Award, in any such case, pursuant to the terms and conditions of the Plan and the applicable Agreement and in accordance with such terms and conditions as may be
specified from time to time by the Committee, the Company shall be under no obligation to issue Shares thereunder unless and until the Company is satisfied, as determined in the discretion of the Committee, that the person or persons exercising such
Award, or to receive such payment, are the duly appointed legal representative of the deceased Participant’s estate or the proper legatees or distributees thereof or the named beneficiary of such Participant, or the valid transferee of such
Award, as applicable. Any purported assignment, transfer or encumbrance of an Award that does not comply with this Section 12.1 shall be void and unenforceable against the Company. 

12.2. Beneficiary Designation. Each Participant may, from time to time, name any beneficiary or beneficiaries who shall be
permitted to exercise his or her Option or SAR or to whom any benefit under the Plan is to be paid in case of the Participant’s death before he or she fully exercises his or her Option or SAR or receives any or all of such benefit. Each such
designation shall revoke all prior designations by the same Participant, shall be in a form prescribed by the Company, and will be effective only when filed by the Participant in writing with the Company during the Participant’s lifetime. In
the absence of any such beneficiary designation, a Participant’s unexercised Option or SAR, or amounts due but remaining unpaid to such Participant, at the Participant’s death, shall be exercised or paid as designated by the Participant by
will or by the laws of descent and distribution. 

  
 22 

 ARTICLE XIII. 
 RIGHTS OF PARTICIPANTS 
 13.1. Rights or Claims. No person shall have
any rights or claims under the Plan except in accordance with the provisions of the Plan and any applicable Award Agreement. The liability of the Company and any Subsidiary or Affiliate under the Plan is limited to the obligations expressly set
forth in the Plan, and no term or provision of the Plan may be construed to impose any further or additional duties, obligations, or costs on the Company, any Subsidiary or any Affiliate thereof or the Board or the Committee not expressly set forth
in the Plan. The grant of an Award under the Plan shall not confer any rights upon the Participant holding such Award other than such terms, and subject to such conditions, as are specified in the Plan as being applicable to such type of Award, or
to all Awards, or as are expressly set forth in the Award Agreement evidencing such Award. Without limiting the generality of the foregoing, neither the existence of the Plan nor anything contained in the Plan or in any Award Agreement shall be
deemed to: 
  

	 	(a)	Give any Employee or Non-Employee Director the right to be retained in the service of the Company, an Affiliate and/or a Subsidiary, whether in any particular position,
at any particular rate of compensation, for any particular period of time or otherwise; 

  

	 	(b)	Restrict in any way the right of the Company, an Affiliate and/or a Subsidiary to terminate, change or modify any Employee’s employment or any Non-Employee
Director’s service as a Director at any time with or without Cause; 

  

	 	(c)	Confer on any Consultant any right of continued relationship with the Company, an Affiliate and/or a Subsidiary, or alter any relationship between them, including any
right of the Company or an Affiliate or Subsidiary to terminate, change or modify its relationship with a Consultant; 

  

	 	(d)	Constitute a contract of employment or service between the Company or any Affiliate or Subsidiary and any Employee, Non-Employee Director or Consultant, nor shall it
constitute a right to remain in the employ or service of the Company or any Affiliate or Subsidiary; 

  

	 	(e)	Give any Employee, Non-Employee Director or Consultant the right to receive any bonus, whether payable in cash or in Shares, or in any combination thereof, from the
Company, an Affiliate and/or a Subsidiary, nor be construed as limiting in any way the right of the Company, an Affiliate and/or a Subsidiary to determine, in its sole discretion, whether or not it shall pay any Employee, Non-Employee Director or
Consultant bonuses, and, if so paid, the amount thereof and the manner of such payment; or 

  

	 	(f)	Give any Participant any rights whatsoever with respect to an Award except as specifically provided in the Plan and the Award Agreement. 

13.2. Adoption of the Plan. The adoption of the Plan shall not be deemed to give any Employee, Non-Employee Director or Consultant
or any other individual any right to be selected 

  
 23 

 
as a Participant or to be granted an Award, or, having been so selected, to be selected to receive a future Award. 
 13.3. Vesting. Notwithstanding any other provision of the Plan, a Participant’s right or entitlement to exercise or otherwise vest in any Award not exercisable or vested at the time of grant
shall only result from continued services as a Non-Employee Director or Consultant or continued employment, as the case may be, with the Company or any Subsidiary or Affiliate, or satisfaction of any other performance goals or other conditions or
restrictions applicable, by its terms, to such Award, except, in each such case, as the Committee may, in its discretion, expressly determine otherwise. 
 13.4. No Effects on Benefits. Payments and other compensation received by a Participant under an Award are not part of such Participant’s normal or expected compensation or salary for any
purpose, including calculating termination, indemnity, severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments under any laws, plans, contracts, arrangements or
otherwise. No claim or entitlement to compensation or damages arises from the termination of the Plan or diminution in value of any Award or Shares purchased or otherwise received under the Plan. 

13.5. One or More Types of Awards. A particular type of Award may be granted to a Participant either alone or in addition to other
Awards under the Plan. 
 ARTICLE XIV. 
 CHANGE OF CONTROL 
 14.1. Treatment of Outstanding Awards. In the
event of a Change of Control, unless otherwise specifically prohibited by any applicable laws, rules or regulations or otherwise provided in any applicable Award Agreement, as in effect prior to the occurrence of the Change of Control, specifically
with respect to a Change of Control: 
 (a) In its discretion, and on such terms and conditions as it deems appropriate, the
Committee may provide, either by the terms of the Award Agreement or by resolution adopted prior to the occurrence of such Change of Control, that any Options, SARs and Other Share-Based Awards (if applicable) which are outstanding shall become
exercisable as determined by the Committee, notwithstanding anything to the contrary in the Award Agreement. 
 (b) In its
discretion, and on such terms and conditions as it deems appropriate, the Committee may provide, either by the terms of the Award Agreement or by resolution adopted prior to the occurrence of such Change of Control, that restrictions, performance
goals or other conditions applicable to Restricted Stock Units, Shares of Restricted Stock and Other Share-Based Awards previously awarded to Participants shall be canceled or deemed achieved, the Period of Restriction applicable thereto shall
terminate, and restrictions on transfer, sale, assignment, pledge or other disposition applicable to any such Shares of Restricted Stock shall lapse, in each case, to the extent provided by the Committee, notwithstanding anything to the contrary in
the Award Agreement. 

  
 24 

 (c) In its discretion, and on such terms and conditions as it deems appropriate, the
Committee may provide, either by the terms of the Award Agreement or by resolution adopted prior to the occurrence of such Change of Control, that any Awards which are outstanding shall, in whole or in part, immediately become vested and
nonforfeitable. 
 (d) In its discretion, and on such terms and conditions as it deems appropriate, the Committee may provide,
either by the terms of the Award Agreement or by resolution adopted prior to the occurrence of such Change of Control, that the target payment opportunities attainable under any outstanding Awards of Performance Units, Performance Shares, Cash-Based
Awards and other Awards shall be deemed to have been fully or partially earned for any Performance Period(s), as determined by the Committee, immediately prior to the effective date of the Change of Control. 

(e) In its discretion, and on such terms and conditions as it deems appropriate, the Committee may provide, either by the terms of the
Award Agreement applicable to any Award or by resolution adopted prior to the occurrence of such Change of Control, that any Award the payment or settlement of which was deferred under Section 18.6 or otherwise may be paid or distributed
immediately prior to the Change of Control, except as otherwise provided by the Committee in accordance with Section 16.1(f). 
 (f) In its discretion, and on such terms and conditions as it deems appropriate, the Committee may provide, either by the terms of the Award Agreement applicable to any Award or by resolution adopted
prior to the occurrence of the Change of Control, that any outstanding Award shall be adjusted by substituting for each Share subject to such Award immediately prior to the transaction resulting in the Change of Control the consideration (whether
stock or other securities of the surviving corporation or any successor corporation to the Company, or a parent or subsidiary thereof, or that may be issuable by another corporation that is a party to the transaction resulting in the Change of
Control) received in such transaction by holders of Shares for each Share held on the closing or effective date of such transaction, in which event the aggregate Option Price or Grant Price, as applicable, of the Award shall remain the same;
provided, however, that if such consideration received in such transaction is not solely stock of a successor, surviving or other corporation, the Committee may provide for the consideration to be received upon exercise or payment of
an Award, for each Share subject to such Award, to be solely stock or other securities of the successor, surviving or other corporation, as applicable, equal in fair market value, as determined by the Committee, to the per-Share consideration
received by holders of Shares in such transaction. 
 (g) In its discretion, and on such terms and conditions as it deems
appropriate, the Committee may provide, either by the terms of the Award Agreement applicable to any Award or by resolution adopted prior to the occurrence of the Change of Control, that any outstanding Award (or portion thereof) shall be converted
into a right to receive cash, on or as soon as practicable following the closing date or expiration date of the transaction resulting in the Change of Control in an amount equal to the highest value of the consideration to be received in connection
with such transaction for one Share, or, if higher, the highest Fair Market Value of a Share during the thirty (30) consecutive business days immediately prior to the closing date or expiration date of such transaction, less the per-Share
Option Price, Grant Price or outstanding 

  
 25 

 
unpaid purchase price, as applicable to the Award, multiplied by the number of Shares subject to such Award, or the applicable portion thereof. 

(h) The Committee may, in its discretion, provide that an Award can or cannot be exercised after, or will otherwise terminate or not
terminate as of, a Change of Control. 
 14.2. No Implied Rights; Other Limitations. No Participant shall have any right
to prevent the consummation of any of the acts described in Section 4.3 or 14.1 affecting the number of Shares available to, or other entitlement of, such Participant under the Plan or such Participant’s Award. Any actions or
determinations of the Committee under this Article XVI need not be uniform as to all outstanding Awards, nor treat all Participants identically. 
 ARTICLE XV. 
 AMENDMENT, MODIFICATION, AND TERMINATION 

15.1. Amendment, Modification, and Termination. The Board may, at any time and with or without prior notice, amend, alter, suspend,
or terminate the Plan, and the Committee may, to the extent permitted by the Plan, amend the terms of any Award theretofore granted, including any Award Agreement, in each case, retroactively or prospectively; provided, however, that
no such amendment, alteration, suspension, or termination of the Plan shall be made, without first obtaining approval of the shareholders of the Company (where such approval is necessary to satisfy any applicable law, regulation or rule (including
the applicable regulations and rules of the SEC and any national securities exchange)), which would: 
 (a)
except as is provided in Section 4.3, increase the maximum number of Shares which may be sold or awarded under the Plan; 
 (b) except as is provided in Section 4.3, decrease the minimum Option Price or Grant Price requirements of Section 7.2, respectively; 

(c) change the class of persons eligible to receive Awards under the Plan; 

(d) extend the duration of the Plan or the period during which Options or SARs may be exercised under Section 6.4 or
7.6, as applicable; or 
 (e) otherwise require shareholder approval to comply with any applicable law,
regulation or rule (including the applicable regulations and rules of the SEC and any national securities exchange). 
 In addition, no such
amendment, alteration, suspension or termination of the Plan or any Award theretofore granted, including any Award Agreement, shall be made which would materially impair the previously accrued rights of a Participant under any outstanding Award
without the written consent of such Participant, provided, however, that the Board may amend or alter the Plan and the Committee may amend or alter any Award, including any Agreement, either retroactively or prospectively, without the
consent of the applicable Participant, (x) so as to preserve or come within any exemptions from liability under Section 16(b) of the Exchange Act, 

  
 26 

 
pursuant to the rules and releases promulgated by the SEC (including Rule 16b-3), or (y) if the Board or the Committee determines in its discretion that such amendment or alteration either
(I) is required or advisable for the Company, the Plan or the Award to satisfy, comply with or meet the requirements of any law, regulation, rule or accounting standard or (II) is not reasonably likely to significantly diminish the benefits
provided under such Award, or that such diminishment has been or will be adequately compensated. 
 ARTICLE XVI. 

TAX WITHHOLDING AND OTHER TAX MATTERS 
 16.1. Tax Withholding. The Company and/or any Subsidiary or Affiliate are authorized to withhold from any Award granted or payment due under the Plan the amount of all taxes due in respect of such
Award or payment and take any such other action as may be necessary or appropriate, as determined by the Committee, to satisfy all obligations for the payment of such taxes. No later than the date as of which an amount first becomes includible in
the gross income or wages of a Participant for tax purposes with respect to any Award, such Participant shall pay to the Company, or make arrangements satisfactory to the Committee regarding the payment of, any taxes or social security (or similar)
contributions of any kind required by law to be withheld with respect to such amount. The obligations of the Company under the Plan shall be conditional on such payment or satisfactory arrangements (as determined by the Committee in its discretion),
and the Company and the Subsidiaries and Affiliates shall, to the extent permitted by law, have the right to deduct any such taxes from any payment otherwise due to such Participant, whether or not under the Plan. 

16.2. Withholding or Tendering Shares. Without limiting the generality of Section 16.1, the Committee may in its discretion
permit a Participant to satisfy or arrange to satisfy, in whole or in part, the tax obligations incident to an Award by: (a) electing to have the Company withhold Shares or other property otherwise deliverable to such Participant pursuant to
his or her Award (provided, however, that the amount of any Shares so withheld shall not exceed the amount necessary to satisfy required withholding obligations using the minimum statutory withholding rates for tax purposes, including
payroll taxes, that are applicable to supplemental taxable income) and/or (b) tendering to the Company Shares owned by such Participant (or by such Participant and his or her spouse jointly) and purchased or held for the requisite period of
time as may be required to avoid the Company’s or the Affiliates’ or Subsidiaries’ incurring an adverse accounting charge, based, in each case, on the Fair Market Value of the Shares on the payment date as determined by the Committee.
All such elections shall be irrevocable, made in writing, signed by the Participant, and shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate. The Committee may establish such procedures
as it deems appropriate, including making irrevocable elections, for settlement of withholding obligations with Shares or otherwise. 
 16.3. Restrictions. The satisfaction of tax obligations pursuant to this Article XVI shall be subject to such restrictions as the Committee may impose, including any restrictions required by
applicable law or the rules and regulations of the SEC, and shall be construed consistent with an intent to comply with any such applicable laws, rule and regulations. 

  
 27 

 16.4. No Guarantee of Favorable Tax Treatment. The Company does not warrant that any
Award under the Plan will qualify for favorable tax treatment under any provision of any applicable law. The Company shall not be liable to any Participant for any tax, interest, or penalties the Participant might owe as a result of the grant,
holding, vesting, exercise, or payment of any Award under the Plan. 
 ARTICLE XVII. 

LIMITS OF LIABILITY; INDEMNIFICATION 
 17.1. Limits of Liability. 
 (a) Any liability of the Company or a
Subsidiary or Affiliate to any Participant with respect to any Award shall be based solely upon contractual obligations created by the Plan and the Award Agreement. 
 (b) None of the Company, any Subsidiary, any Affiliate, any member of the Board or the Committee or any other person participating in any determination of any question under the Plan, or in the
interpretation, administration or application of the Plan, shall have any liability, in the absence of bad faith, to any party for any action taken or not taken in connection with the Plan, except as may expressly be provided by statute. 

(c) Each member of the Committee, while serving as such, shall be considered to be acting in his or her capacity as a director of the
Company. Members of the Board of Directors and members of the Committee acting under the Plan shall be fully protected in relying in good faith upon the advice of counsel and shall incur no liability except for gross negligence or willful misconduct
in the performance of their duties. 
 (d) The Company shall not be liable to a Participant or any other person as to:
(i) the non-issuance of Shares as to which the Company has been unable to obtain from any regulatory body having relevant jurisdiction the authority deemed by the Committee or the Company’s counsel to be necessary to the lawful issuance
and sale of any Shares hereunder, and (ii) any tax consequence expected, but not realized, by any Participant or other person due to the receipt, exercise or settlement of any Option or other Award. 

17.2. Indemnification. Subject to the requirements of applicable law, each individual who is or shall have been a member of the
Committee or of the Board, or an officer of the Company to whom authority was delegated in accordance with Article III, 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, action, 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, unless such loss, cost, liability, or expense is a
result of the individual’s own willful 

  
 28 

 
misconduct or except as provided by statute. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such individual may be entitled under
the Company’s Articles of Association, as a matter of law, or otherwise, or any power that the Company may have to indemnify or hold harmless such individual. 
 ARTICLE XVIII. 
 MISCELLANEOUS 

18.1. Drafting Context. 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. The words “Article,” “Section,” and “paragraph” herein shall refer to provisions of the Plan, unless expressly indicated
otherwise. The words “include,” “includes,” and “including” herein shall be deemed to be followed by “without limitation” whether or not they are in fact followed by such words or words of similar import,
unless the context otherwise requires. The headings and captions appearing herein are inserted only as a matter of convenience. They do not define, limit, construe, or describe the scope or intent of the provisions of the Plan. 

18.2. Forfeiture Events. 
 (a) Notwithstanding any provision of the Plan to the contrary, the Committee shall have the authority to determine (and may so provide in any Agreement) that a Participant’s (including his or her
estate’s, beneficiary’s or transferee’s) rights (including the right to exercise any Option or SAR), payments and benefits with respect to any Award shall be subject to reduction, cancellation, forfeiture or recoupment in the event of
the Participant’s Termination for Cause or due to voluntary resignation; serious misconduct; violation of the Company’s or a Subsidiary’s or Affiliate’s policies; breach of fiduciary duty; unauthorized disclosure of any trade
secret or confidential information of the Company or a Subsidiary or Affiliate; breach of applicable noncompetition, nonsolicitation, confidentiality or other restrictive covenants; or other conduct or activity that is in competition with the
business of the Company or any Subsidiary or Affiliate, or otherwise detrimental to the business, reputation or interests of the Company and/or any Subsidiary or Affiliate; or upon the occurrence of certain events specified in the applicable Award
Agreement (in any such case, whether or not the Participant is then an Employee, Non-Employee Director or Consultant). The determination of whether a Participant’s conduct, activities or circumstances are described in the immediately preceding
sentence shall be made by the Committee in its discretion, and pending any such determination, the Committee shall have the authority to suspend the exercise, payment, delivery or settlement of all or any portion of such Participant’s
outstanding Awards pending an investigation of the matter. 
 (b) If the Company is required to prepare an accounting restatement
(x) due to the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement under the securities laws, the individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley
Act of 2002 and any Participant who knowingly engaged in such misconduct, was grossly negligent in engaging in such misconduct, knowingly failed to prevent such misconduct or was grossly negligent in failing to prevent such misconduct,

  
 29 

 
shall reimburse the Company the amount of any payment in settlement of an Award earned or accrued during the twelve- (12-) month period following the public issuance or Exchange Act filing
(whichever first occurred) of the financial document that contained such material noncompliance, and (y) the Committee may in its discretion provide that if the amount earned under any Participant’s Award is reduced by such restatement,
such Participant shall reimburse the Company the amount of any such reduction previously paid in settlement of such Award. 

18.3. Severability. In the event any provision of the Plan shall be held illegal or invalid for any reason, the 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. 
 18.4. Transfer, Leave of Absence. The Committee shall have the discretion to determine the effects upon any Award, upon an individual’s status as an Employee, Non-Employee Director or
Consultant for purposes of the Plan (including whether a Participant shall be deemed to have experienced a Termination or other change in status) and upon the exercisability, vesting, termination or expiration of any Award in the case of:
(a) any Participant who is employed by an entity that ceases to be an Affiliate or Subsidiary (whether due to a spin-off or otherwise), (b) any transfer of a Participant between locations of employment with the Company, an Affiliate,
and/or Subsidiary or between the Company, an Affiliate or Subsidiary or between Affiliates or Subsidiaries, (c) any leave of absence of a Participant, (d) any change in a Participant’s status from an Employee to a Consultant or a
Non-Employee Director, or vice versa, (e) any increase or decrease in the scope of engagement of a Participant; and (f) upon approval by the Committee, any Employee who experiences a Termination but becomes employed by a partnership, joint
venture, corporation or other entity not meeting the requirements of an Affiliate or Subsidiary. 
 18.5. Exercise and Payment
of Awards. An Award shall be deemed exercised or claimed when the Secretary of the Company or any other Company official or other person designated by the Committee for such purpose receives appropriate written notice from a Participant, in form
acceptable to the Committee, together with payment of the applicable Option Price, Grant Price or other purchase price, if any, and compliance with Article XVI, in accordance with the Plan and such Participant’s Award Agreement. 

18.6. Deferrals. Subject to applicable law, the Committee may from time to time establish procedures pursuant to which a
Participant may defer on an elective or mandatory basis receipt of all or a portion of the cash or Shares subject to an Award on such terms and conditions as the Committee shall determine, including those of any deferred compensation plan of the
Company or any Subsidiary or Affiliate specified by the Committee for such purpose. 
 18.7. Loans. The Company may, in
the discretion of the Committee, extend one or more loans to Participants in connection with the exercise or receipt of an Award granted to any such Participant; provided, however, that the Company shall not extend loans to any
Participant if prohibited by law or the rules of any stock exchange or quotation system on which the Company’s securities are listed. The terms and conditions of any such loan shall be established by the Committee. 

  
 30 

 18.8. No Effect on Other Plans. Neither the adoption of the Plan nor anything
contained herein shall affect any other compensation or incentive plans or arrangements of the Company or any Subsidiary or Affiliate, or prevent or limit the right of the Company or any Subsidiary or Affiliate to establish any other forms of
incentives or compensation for their directors, officers, eligible employees or consultants or grant or assume options or other rights otherwise than under the Plan. 
 18.9. Section 16 of Exchange Act. The provisions and operation of the Plan are intended to ensure that no transaction under the Plan is subject to (and not exempt from) the short-swing profit
recovery rules of Section 16(b) of the Exchange Act. Unless otherwise stated in the Award Agreement, notwithstanding any other provision of the Plan, any Award granted to an Insider shall be subject to any additional limitations set forth in
any applicable exemptive rule under Section 16 of the Exchange Act (including Rule 16b-3) that are requirements for the application of such exemptive rule, and the Plan and the Award Agreement shall be deemed amended to the extent necessary to
conform to such limitations. 
 18.10. Requirements of Law; Limitations on Awards. 

(a) 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. 
 (b) If at any time the
Committee shall determine, in its discretion, that the listing, registration and/or qualification of Shares upon any securities exchange or under any law, or the consent or approval of any governmental regulatory body, is necessary or desirable as a
condition of, or in connection with, the sale or purchase of Shares hereunder, the Company shall have no obligation to allow the grant, exercise or payment of any Award, or to issue or deliver evidence of title for Shares issued under the Plan, in
whole or in part, unless and until such listing, registration, qualification, consent and/or approval shall have been effected or obtained, or otherwise provided for, free of any conditions not acceptable to the Committee. 

(c) If at any time counsel to the Company shall be of the opinion that any sale or delivery of Shares pursuant to an Award is or may be in
the circumstances unlawful or result in the imposition of excise taxes on the Company or any Subsidiary or Affiliate under the statutes, rules or regulations of any applicable jurisdiction, the Company shall have no obligation to make such sale or
delivery, or to make any application or to effect or to maintain any qualification or registration under the Securities Act, or otherwise with respect to Shares or Awards and the right to exercise or payment of any Option or Award shall be suspended
until, in the opinion of such counsel, such sale or delivery shall be lawful or will not result in the imposition of excise taxes on the Company or any Subsidiary or Affiliate. 
 (d) Upon termination of any period of suspension under this Section 18.10, any Award affected by such suspension which shall not then have expired or terminated shall be reinstated as to all Shares
available before such suspension and as to the Shares which would otherwise have become available during the period of such suspension, but no suspension shall extend the term of any Award. 

  
 31 

 (e) The Committee may require each person receiving Shares in connection with any Award
under the Plan to represent and agree with the Company in writing that such person is acquiring such Shares for investment without a view to the distribution thereof, and/or provide such other representations and agreements as the Committee may
prescribe. The Committee, in its absolute discretion, may impose such restrictions on the ownership and transferability of the Shares purchasable or otherwise receivable by any person under any Award as it deems appropriate. Any such restrictions
shall be set forth in the applicable Award Agreement, and the certificates evidencing such shares may include any legend that the Committee deems appropriate to reflect any such restrictions. 

(f) An Award and any Shares received upon the exercise or payment of an Award shall be subject to such other transfer and/or ownership
restrictions and/or legending requirements as the Committee may establish in its discretion and may be referred to on the certificates evidencing such Shares, including restrictions under applicable securities laws, under the requirements of any
stock exchange or market upon which such Shares are then listed and/or traded, and under any blue sky or state securities laws applicable to such Shares. 
 18.11. Participants Deemed to Accept Plan. By accepting any benefit under the Plan, each Participant and each person claiming under or through any such Participant shall be conclusively deemed to
have indicated their acceptance and ratification of, and consent to, all of the terms and conditions of the Plan and any action taken under the Plan by the Board, the Committee or the Company, in any case in accordance with the terms and conditions
of the Plan. 
 18.12. Governing Law. The Plan and, except as provided below or in an applicable subplan, each Award
Agreement to a Participant shall be governed by the laws of the State of Israel, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of the Plan to the substantive law of another
jurisdiction. Unless otherwise provided in the Award Agreement, Participants are deemed to submit to the exclusive jurisdiction and venue of the courts in Tel-Aviv, Israel, to resolve any and all issues that may arise out of or relate to the Plan or
any related Award Agreement. 
 18.13. Plan Unfunded. The Plan shall be unfunded. The Company shall not be required to
establish any special or separate fund or to make any other segregation of assets to assure the issuance of Shares or the payment of cash upon exercise or payment of any Award. Proceeds from the sale of Shares pursuant to Options or other Awards
granted under the Plan shall constitute general funds of the Company. 
 18.14. Administration Costs. The Company shall
bear all costs and expenses incurred in administering the Plan, including expenses of issuing Shares pursuant to any Options or other Awards granted hereunder. 
 18.15. Uncertificated Shares. To the extent that the Plan provides for issuance of certificates to reflect the transfer of Shares, the transfer of such Shares may nevertheless be effected on a
noncertificated basis, to the extent not prohibited by applicable law or the rules of any stock exchange. 

  
 32 

 18.16. No Fractional Shares. An Option or other Award shall not be exercisable with
respect to a fractional Share or the lesser of fifty (50) shares or the full number of Shares then subject to the Option or other Award. No fractional Shares shall be issued upon the exercise or payment of an Option or other Award and any such
fractions shall be rounded to the nearest whole number. 
 18.17. Data Protection. By participating in the Plan, each
Participant consents to the collection, processing, transmission and storage by the Company or any Subsidiary or Affiliate, in any form whatsoever, of any data of a professional or personal nature which is necessary for the purposes of administering
the Plan. The Company may share such information with any Subsidiary or Affiliate, any trustee, its registrars, brokers, other third-party administrator or any person who obtains control of the Company or any Subsidiary or Affiliate or any division
respectively thereof. 
 18.18. Right of Offset. The Company and the Subsidiaries and Affiliates shall have the right to
offset against the obligations to make payment or issue any Shares to any Participant under the Plan, any outstanding amounts (including travel and entertainment advance balances, loans, tax withholding amounts paid by the employer or amounts
repayable to the Company or any Subsidiary or Affiliate pursuant to tax equalization, housing, automobile or other employee programs) such Participant then owes to the Company or any Subsidiary or Affiliate and any amounts the Committee otherwise
deems appropriate pursuant to any tax equalization policy or agreement. 
 18.19. Participants. Notwithstanding any
provision of the Plan to the contrary, in order to comply with the laws or practices of countries in which the Company, any Affiliate, and/or any Subsidiary operates or has Employees, Non-Employee Directors or Consultants, the Committee, in its sole
discretion, shall have the power and authority to: 
  

	 	(a)	Determine which Affiliates and Subsidiaries shall be covered by the Plan; 

  

	 	(b)	Determine which Employees, Non-Employee Directors and/or Consultants are eligible to participate in the Plan; 

 

	 	(c)	Grant Awards (including substitutes for Awards), and modify the terms and conditions of any Awards, on such terms and conditions as the Committee determines necessary
or appropriate to permit participation in the Plan by individuals otherwise eligible to so participate, or otherwise to comply with applicable laws or conform to applicable requirements or practices of the applicable jurisdictions;

  

	 	(d)	Establish subplans and adopt or modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable. Any subplans and
modifications to Plan terms and procedures established under this Section 18.19 by the Committee shall be attached to the Plan as appendices; and 

  

	 	(e)	Take any action, before or after an Award is made, that the Committee, in its discretion, deems advisable to obtain approval or comply with any necessary local
government regulatory exemptions or approvals. 

  
 33 

 Notwithstanding the above, the Committee may not take any actions hereunder, and no Awards shall be granted,
that would violate any applicable law. 
 * * * 

  
 34 

 APPENDIX A — ISRAEL  

TO THE  
 CAESARSTONE SDOT-YAM LTD.  
 2011 INCENTIVE COMPENSATION PLAN
 
  

	1.	GENERAL 

  

	1.1.	This appendix (the: “Appendix”) shall apply only to Israeli Participants (as defined below). The provisions specified hereunder shall form an integral
part of the CaesarStone Sdot-Yam Ltd. 2011 Incentive Compensation Plan (hereinafter: the “Plan”, the “Company”), which applies to the issuance of Awards to employees, directors, consultants and service provides of
the Company or its Affiliates. 

  

	1.2.	This Appendix is effective with respect to Awards granted as of 30 days from the date it was submitted with the ITA and shall comply with Section 102 (as defined
below). 

  

	1.3.	This Appendix is to be read as a continuation of the Plan and only modifies Awards granted to Israeli Participants (as defined below) so that they comply with the
requirements set by the Israeli law in general, and in particular with the provisions of Section 102 (as specified herein), as may be amended or replaced from time to time. For the avoidance of doubt, this Appendix does not add to or modify the
Plan in respect of any other category of Participants. 

  

	1.4.	The Plan and this Appendix are complimentary to each other and shall be deemed as one. Subject to section 1.3 above, in any case of contradiction, whether explicit or
implied, between any definitions and/or provisions of this Appendix and the Plan, the provisions set out in this Appendix shall prevail. 

  

	1.5.	Any capitalized terms not specifically defined in this Appendix shall be construed according to the interpretation given to it in the Plan. 

 

	2.	DEFINITIONS 

  

	2.1.	“Affiliate” means any “employing company” within the meaning of Section 102(a) of the Ordinance. 

 

	2.2.	“Approved 102 Award” means an Award granted pursuant to Section 102(b) of the Ordinance and held in trust by a Trustee for the benefit of the
Israeli Participant. 

  

	2.3.	 “Award” notwithstanding Section 2.3 of the Plan, for the purpose of this Appendix, Award means an Award to purchase one or more
Shares of the Company or Stock 

  
 35 

	 	
Appreciation Rights, Restricted Stock Awards, Restricted Stock Units, Performance Shares, Performance Units, Cash-Based Awards, and Other Stock-Based Awards. 

 

	2.4.	“Capital Gain Award (CGA)” means an Approved 102 Award elected and designated by the Company to qualify under the capital gain tax treatment in
accordance with the provisions of Section 102(b)(2) of the Ordinance. 

  

	2.5.	“Controlling Shareholder” shall have the meaning ascribed to it in Section 102 of the Ordinance. 

 

	2.6.	“Employee” means an Israeli Participant who is employed by the Company or its Affiliates, including an individual who is serving as a director or an
office holder, but excluding any Controlling Shareholder. 

  

	2.7.	“Israeli Participant” means a person who is a resident of the state of Israel or who is deemed to be a resident of the state of Israel for Israeli tax
purposes, and receives or holds an Award under the Plan and this Appendix. 

  

	2.8.	“ITA” means the Israeli Tax Authorities. 

  

	2.9.	“Ordinary Income Award (OIA)” means an Approved 102 Award elected and designated by the Company to qualify under the ordinary income tax treatment in
accordance with the provisions of Section 102(b)(1) of the Ordinance. 

  

	2.10.	“102 Award” means any Award granted to Employees pursuant to Section 102 of the Ordinance. 

 

	2.11.	“3(i) Award” means an Award granted pursuant to Section 3(i) of the Ordinance to any person who is a Non- Employee. 

 

	2.12.	“Israeli Award Agreement” notwithstanding Section 2.4 of the Plan, for the purpose of this Appendix, Israeli Award Agreement shall mean a written
agreement entered into and signed by the Company and an Israeli Participant that sets out the terms and conditions of an Award. 

  

	2.13.	“Non-Employee” means an Israeli Participant who is a consultant, adviser, service provider, Controlling Shareholder or any other person who is not an
Employee. 

  

	2.14.	“Ordinance” means the Israeli Income Tax Ordinance [New Version] 1961 as now in effect or as hereafter amended. 

 

	2.15.	“Ordinary Share” means an ordinary share of, par value NIS 0.01 of the Company. 

 

	2.16.	“Section 102” means section 102 of the Ordinance, the Income Tax Rules (Tax Relief for Issuance of Shares to Employees), 2003, and any other rules,
regulations,, orders or procedures promulgated thereunder as now in effect or as hereafter amended. 

  
 36 

	2.17.	“Trustee” means any person appointed by the Company to serve as a trustee and approved by the ITA, all in accordance with the provisions of
Section 102(a) of the Ordinance. 

  

	2.18.	“Unapproved 102 Award” means an Award granted pursuant to Section 102(c) of the Ordinance and not held in trust by a Trustee.

  

	3.	ISSUANCE OF AWARDS 

  

	3.1.	Notwithstanding Article V of the Plan and in addition thereto, any Israeli Participants eligible for participation in the Plan and this Appendix as Israeli Participants
shall include any Employee and/or Non-Employee of the Company or of any of the Company’s Affiliates; provided, however, that (i) Employees may only be granted 102 Awards; and (ii) Non-Employees and/or Controlling
Shareholders may only be granted 3(i) Awards. 

  

	3.2.	The Company may designate Awards granted to Employees pursuant to Section 102 as Unapproved 102 Awards or Approved 102 Awards. 

 

	3.3.	The grant of Approved 102 Awards shall be made under this Appendix, and shall be conditioned upon the approval of this Appendix by the ITA. 

 

	3.4.	Approved 102 Awards may either be classified as Capital Gain Awards (“CGAs”) or Ordinary Income Awards (“OIAs”).

  

	3.5.	No Approved 102 Awards may be granted under this Appendix to any eligible Employee, unless and until, the Company’s election of the type of Approved 102 Awards as
CGA or OIA granted to Employees (the “Election”), is appropriately filed with the ITA. Such Election shall become effective beginning the first date of grant of an Approved 102 Award under this Appendix and shall remain in effect
until the end of the year following the year during which the Company first granted Approved 102 Awards. The Election shall obligate the Company to grant only the type of Approved 102 Award it has elected, and shall apply to all Israeli
Participants who were granted Approved 102 Awards during the period indicated herein, all in accordance with the provisions of Section 102(g) of the Ordinance. For the avoidance of doubt, such Election shall not prevent the Company from
granting Unapproved 102 Awards simultaneously. 

  

	3.6.	All Approved 102 Awards must be held in trust by a Trustee, as described in Section 4 below. 

 

	3.7.	For the avoidance of doubt, the designation of Unapproved 102 Awards and Approved 102 Awards shall be subject to the terms and conditions set forth in Section 102.

  
 37 

	4.	TRUSTEE 

  

	4.1.	The terms and conditions applicable to the trust relating to Section 102 shall be set forth in an agreement signed by the Company and the Trustee (the
“Trust Agreement”). 

  

	4.2.	Approved 102 Awards which shall be granted under this Appendix and/or any Ordinary Shares allocated or issued upon exercise or vesting of such Approved 102 Awards
and/or other shares received subsequently following any realization of rights, including without limitation bonus shares, shall be allocated or issued to the Trustee and held for the benefit of the Employee for such period of time as required by
Section 102 (the “Holding Period”). In case the requirements for Approved 102 Awards are not met, then the Approved 102 Awards shall be regarded as Unapproved 102 Awards, all in accordance with the provisions of
Section 102. 

  

	4.3.	Notwithstanding anything to the contrary, the Trustee shall not release any Ordinary Shares allocated or issued upon exercise or vesting of Approved 102 Awards prior to
the full payment of the Employee’s tax liabilities, if any, arising from Approved 102 Awards which were granted to him/her and/or any Ordinary Shares allocated or issued upon exercise or vesting of such Awards. 

 

	4.4.	With respect to any Approved 102 Award, subject to the provisions of Section 102, an Israeli Participant shall not sell or release from trust any Share received
upon the exercise or vesting of an Approved 102 Award and/or any share received subsequently following any realization of rights, including without limitation, bonus shares, until the lapse of the Holding Period required under Section 102.
Notwithstanding the above, if any such sale or release occurs during the Holding Period, the sanctions under Section 102 shall apply to and shall be borne solely by such Israeli Participant. 

 

	4.5.	Upon receipt of any Approved 102 Award, the Employee will sign an undertaking to release the Trustee from any liability in respect of any action or decision duly taken
and bona fide executed in relation with this Appendix, or any Approved 102 Award or Ordinary Share granted to him thereunder. 

  

	5.	THE AWARDS 

Notwithstanding anything to the contrary in the Plan and in addition thereto, the terms and conditions upon which the Awards shall be
issued and exercised or vest, as applicable, shall be as specified in the Israeli Award Agreement to be executed pursuant to the Plan and to this Appendix. Each Israeli Award Agreement shall be subject to Section 102 or Section 3(i) of the
Ordinance, as applicable, and shall state, inter alia, the number of Ordinary Shares to which the Award relates, the type of Award granted thereunder (whether a CGA, OIA, Unapproved 102 Award or a 3(i) Award), and any applicable vesting provisions
and exercise price that may be payable. 
  

	6.	FAIR MARKET VALUE 

  
 38 

 Without derogating from Section 2.19 of the Plan and solely for the purpose of
determining the tax liability pursuant to Section 102(b)(3) of the Ordinance, if at the date of grant of any CGA, the Company’s Shares are listed on any established stock exchange or a national market system or if the Company’s Shares
will be registered for trading within ninety (90) days following the date of grant of the CGAs, the fair market value of the Ordinary Shares at the date of grant shall be determined in accordance with the average value of the Company’s
Shares on the thirty (30) trading days preceding the date of grant or on the thirty (30) trading days following the date of registration for trading, as the case may be. 
 7. EXERCISE OF AWARDS THAT ARE OPTIONS TO PURCHASE ORDINARY SHARES 
 Awards
that represent options to purchase Ordinary Shares shall be exercised by the Israeli Participant by giving a written or electronic notice to the Company and/or to any third party designated by the Company (the “Representative”), in
such form and method as may be determined by the Company and, when applicable, by the Trustee, in accordance with the requirements of Section 102, which exercise shall be effective upon receipt of such notice by the Company and/or the
Representative and the payment of the exercise price for the number of Ordinary Shares with respect to which the Award is being exercised, at the Company’s or the Representative’s principal office. The notice shall specify the number of
Ordinary Shares with respect to which the Award is being exercised. 
  

	8.	ASSIGNABILITY AND SALE OF AWARDS 

  

	8.1.	Notwithstanding any other provision of the Plan, no Award or any right with respect thereto, or purchasable hereunder, whether fully paid or not, shall be assignable,
transferable or given as collateral or any right with respect to them given to any third party whatsoever, and during the lifetime of the Israeli Participant each and all of such Israeli Participant’s rights with respect to an Award shall
belong only to the Israeli Participant. 

 Any such action made directly or indirectly, for an immediate validation
or for a future one, shall be void. 
  

	8.2.	As long as Awards or Ordinary Shares purchased or issued hereunder are held by the Trustee on behalf of the Israeli Participant, all rights of the Israeli Participant
over the Awards and/or Ordinary Shares are personal, can not be transferred, assigned, pledged or mortgaged, other than by will or laws of descent and distribution, provided that the transferee thereof shall be subject to the provisions of
Section 102 as would have been applicable to the deceased Participant were he or she to have survived. 

  
 39 

	9.	INTEGRATION OF SECTION 102 AND TAX ASSESSING OFFICER’S PERMIT 

  

	9.1.	With regards to Approved 102 Awards, the provisions of the Plan and/or the Appendix and/or the Israeli Award Agreement shall be subject to the provisions of
Section 102 and the Tax Assessing Officer’s permit and/or any pre-rulings obtained by the ITA, and the said provisions, permit and/or pre-rulings shall be deemed an integral part of the Plan and of the Appendix and of the Israeli Award
Agreement. 

  

	9.2.	Any provision of Section 102 and/or the said permit and/or pre-rulings which is necessary in order to receive and/or to keep any tax benefit pursuant to
Section 102, which is not expressly specified in the Plan or the Appendix or the Israeli Award Agreement, shall be considered binding upon the Company and the Israeli Participants. 

 

	10.	DIVIDEND 

Notwithstanding anything to the contrary in the Plan and solely for the purpose of Awards granted under this Appendix, with respect to
all Ordinary Shares (but excluding, for avoidance of any doubt, any unexercised Awards) allocated or issued upon the exercise or vesting of Awards purchased or received, as applicable, by the Israeli Participant and held by the Israeli Participant
or by the Trustee, as the case may be, the Israeli Participant shall be entitled to receive dividends, if any, in accordance with the quantity of such Shares, subject to the provisions of the Company’s Articles of Association (and all
amendments thereto) and subject to any applicable taxation on distribution of dividends, and when applicable subject to the provisions of Section 102. 
  

	11.	TAX CONSEQUENCES 

  

	11.1.	Notwithstanding anything to the contrary in Article XVI of the Plan and solely for the purpose of Awards granted under this Appendix, any tax consequences arising from
the grant, exercise or vesting of any Award, from the payment for Ordinary Shares covered thereby or from any other event or act (of the Company, and/or its Affiliates, and the Trustee or the Israeli Participant), hereunder, shall be borne solely by
the Israeli Participant. The Company and/or its Affiliates, and/or the Trustee shall withhold taxes according to the requirements under the applicable laws, rules, and regulations, including withholding taxes at source. Furthermore, the Israeli
Participant shall agree to indemnify the Company and/or its Affiliates and/or the Trustee and hold them harmless against and from any and all liability for any such tax or interest or penalty thereon, including without limitation, liabilities
relating to the necessity to withhold, or to have withheld, any such tax from any payment made to the Israeli Participant. 

  

	11.2.	The Company and/or, when applicable, the Trustee shall not be required to release any share certificate to a Israeli Participant until all required payments have been
fully made. 

  
 40 

	11.3.	With respect to Unapproved 102 Award, if the Israeli Participant ceases to be employed by the Company or any Affiliate, the Israeli Participant shall extend to the
Company and/or its Affiliate a security or guarantee for the payment of tax due at the time of sale of Shares, all in accordance with the provisions of Section 102 and the rules, regulation or orders promulgated thereunder.

  

	12.	ISRAELI PARTICIPANT’S UNDERTAKINGS 

 By receiving Awards under the Plan and this Appendix, the Israeli Participant (1) agrees and acknowledges that he or she have received and read the Plan, the Appendix and the Israeli Award Agreement;
(2) undertakes to comply with all the provisions set forth in: Section 102 (including provisions regarding the applicable Tax Track that the Company has selected) or Section 3(i), as applicable, the Plan, the Appendix, the Israeli
Award Agreement and the Trust Agreement; and (3) if the Awards are granted under Section 102, the Israeli Participant undertakes, subject to the provisions of Section 102, not to sell or release the Shares from trust before the end of
the Holding Period. 
  

	13.	TERM OF PLAN AND APPENDIX 

Notwithstanding anything to the contrary in Article XV of the Plan and in addition thereto, the Company shall obtain all approvals for
the adoption of this Appendix or for any amendment to this Appendix as are necessary to comply with (i) any applicable law, including without limitation U.S. securities laws and the securities laws of any other jurisdiction applicable to Awards
granted to Israeli Participant under this Appendix, (ii) any national securities exchange on which the Shares are traded, and (iii) any applicable rules and regulations promulgated by the U.S. Securities and Exchange Commission.

  

	14.	GOVERNING LAW & JURISDICTION 

 This Appendix shall be governed by and construed and enforced in accordance with the laws of the State of Israel applicable to contracts made and to be performed therein, without giving effect to the
principles of conflict of laws. The competent courts in Tel Aviv shall have sole jurisdiction in any matters pertaining to this Appendix. 
 * * * 

  
 41 

 APPENDIX B — UNITED STATES  

TO THE  
 CAESARSTONE SDOT-YAM LTD.  
 2011 INCENTIVE COMPENSATION PLAN
 
  

	1.	SPECIAL PROVISIONS FOR U.S. TAXPAYERS 

  

	1.1.	This Appendix (this “Appendix”) to the CaesarStone Sdot-Yam Ltd. 2011 Incentive Compensation Plan (the “Plan”) was adopted by the
Board on [DATE] pursuant to Section 18.19 of the Plan. This Appendix shall become effective on the Effective Date. 

  

	1.2.	The provisions specified hereunder apply only to persons who are subject to U.S. federal income tax (any such person, a “U.S. Taxpayer”).

  

	1.3.	This Appendix is to be read as a continuation of the Plan and only applies with respect to Options and other Awards granted under the Plan to U.S. Taxpayers. The
purpose of this Appendix is to establish certain rules and limitations applicable to Options and other Awards that may be granted or issued under the Plan to U.S. Taxpayers from time to time, in compliance with applicable tax, securities and other
applicable laws currently in force. For the avoidance of doubt, this Appendix does not add to or modify the Plan in respect of any other category of Israeli Participants (as defined in Appendix A to the Plan). 

 

	1.4.	The Plan and this Appendix are complimentary to each other and shall be deemed as one. Subject to section 1.3 above, in any case of contradiction, whether explicit or
implied, between any definitions and/or provisions of this Appendix and the Plan, the provisions set out in this Appendix shall prevail. 

  

	2.	DEFINITIONS 

 Capitalized
terms not otherwise defined herein shall have the meaning assigned to them in the Plan. The following additional definitions will apply to grants made pursuant to this Appendix, provided, however, that to the extent that such
definitions are provided for in the Plan and this Appendix, the definitions in this Appendix shall apply to Awards granted to U.S. Taxpayers: 

	2.1.	“Code” means the United States Internal Revenue Code of 1986, as it may be amended from time to time, including rules and regulations promulgated
thereunder and successor provisions and rules and regulations thereto. 

  

	2.2.	“Fair Market Value” has the meaning assigned to such term in the Plan; provided, however, that, with respect to ISOs, for purposes of
Section 6.3 of the Plan and Sections 3.4 and 3.5 of this Appendix, such fair market value shall be determined subject to Section 422(c)(7) of the Code, and, in any case, the Committee shall determine Fair Market Value in a manner that
satisfies the applicable requirements of Code Section 409A. 

  

	2.3.	“Incentive Stock Option” or “ISO” means a right to purchase Shares under the Plan in accordance with the terms and conditions set
forth in Article VI of the Plan and which is designated as an Incentive Stock Option and which is intended to meet the requirements of Section 422 of the Code. 

 

	2.4.	“Nonqualified Stock Option” or “NQSO” means a right to purchase Shares under the Plan in accordance with the terms and conditions set
forth in Article VI of the Plan and which is not intended to meet the requirements of Section 422 of the Code or otherwise does not meet such requirements. 

 

	2.5.	“Subsidiary” means any present or future corporation which is or would be a “subsidiary corporation” of the Company as the term is defined in
Section 424(f) of the Code. 

  

	3.	INCENTIVE STOCK OPTIONS 

  

	3.1.	Any Substitute Awards granted under the Plan shall be subject to compliance with the ISO rules under Code Section 422 and the nonqualified deferred compensation
rules under Code Section 409A, where applicable. 

  

	3.2.	The provisions of Section 4.2 of the Plan shall, in the case of ISOs, be subject to any limitations applicable thereto under the Code. 

 

	3.3.	The total number of Shares that may be delivered pursuant to Incentive Stock Options granted under the Plan shall be the number of Shares set forth in Section 4.1
of the Plan, as adjusted pursuant to Section 4.2 of the Plan, but without application of the last sentence of such section. 

  

	3.4.	The Committee shall determine any adjustment, substitution or change pursuant to Section 4.3 of the Plan after taking into account, among other things, to the
extent applicable, the provisions of the Code applicable to Incentive Stock Options and the provisions of Section 409A of the Code. 

  

	3.5.	 Each Award Agreement shall specify whether an Option is intended to be a ISO or an NQSO. To the extent that any Option granted to a U.S. Taxpayer does
not qualify as an ISO (whether because of its provisions or the time or manner of its exercise or 

  
 43 

	 	
otherwise), such Option, or the portion thereof which does not so qualify, shall constitute a separate NQSO. 

 

	3.6.	 No ISO shall be exercisable later than the tenth (10th) anniversary of its date of grant. 

 

	3.7.	The last sentence of Section 6.5 shall not apply to ISOs. 

  

	3.8.	The right to make a payment of the Option Price of an Incentive Stock Option in the form of already owned Shares, under Section 6.6(a) of the Plan, may be
authorized only as of the grant date of such Incentive Stock Option. 

  

	3.9.	No ISO shall be granted to any individual otherwise eligible to participate in the Plan who is not an Employee of the Company or a Subsidiary on the date of granting of
such Option. Any ISO granted under the Plan shall contain such terms and conditions, consistent with the Plan, as the Committee may determine to be necessary to qualify such Option as an “incentive stock option” under Section 422 of
the Code. Any ISO granted under the Plan may be modified by the Committee to disqualify such Option from treatment as an “incentive stock option” under Section 422 of the Code 

 

	3.9	Notwithstanding any intent to grant ISOs, an Option granted under the Plan will not be considered an ISO to the extent that it, together with any other “incentive
stock options” (within the meaning of Section 422 of the Code, but without regard to subsection (d) of such Section) under the Plan and any other “incentive stock option” plans of the Company, any Subsidiary and any
“parent corporation” of the Company within the meaning of Section 424(e) of the Code, are exercisable for the first time by any Participant during any calendar year with respect to Shares having an aggregate Fair Market Value in
excess of $100,000 (or such other limit as may be required by the Code) as of the time the Option with respect to such Shares is granted. The rule set forth in the preceding sentence shall be applied by taking Options into account in the order in
which they were granted. 

  

	3.10	No ISO shall be granted to an individual otherwise eligible to participate in the Plan who owns (within the meaning of Section 424(d) of the Code), at the time the
Option is granted, more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or a Subsidiary or any “parent corporation” of the Company within the meaning of Section 424(e) of the Code.
This restriction does not apply if at the time such ISO is granted the Option Price of the ISO is at least 110% of the Fair Market Value of a Share on the date such ISO is granted, and the ISO by its terms is not exercisable

  

	3.11	No ISO shall be granted to an individual otherwise eligible to participate in the Plan who owns (within the meaning of Section 424(d) of the Code), at the time the
Option is granted, more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or a Subsidiary or any “parent corporation” of the Company within the meaning of Section 424(e) of the Code.
This restriction does not apply if at the time such ISO is granted the Option Price of the ISO is at least 110% of the Fair Market Value of a Share on the date such ISO is granted, and the ISO by its terms is not exercisable after the expiration of
five years from such date of grant. 

  
 44 

	3.12	No Option shall be granted pursuant to this Appendix unless the Option Price of such Option shall be not less than one hundred percent (100%) of the Fair Market
Value of a Share on the Grant Date of such Option 

  

	3.13	Notwithstanding any other provision of the Plan to the contrary, with respect to a Tandem SAR granted in connection with an ISO: (i) the Tandem SAR will expire no
later than the expiration of the related ISO; (ii) the value of the payment with respect to the Tandem SAR may not exceed the difference between the Fair Market Value of the Shares subject to the related ISO at the time the Tandem SAR is
exercised and the Option Price of the related ISO; and (iii) the Tandem SAR may be exercised only when the Fair Market Value of the Shares subject to the ISO exceeds the Option Price of the ISO. 

 

	3.14	No ISO or Tandem SAR granted in connection with an ISO may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the
laws of descent and distribution or in accordance with Section 12.2 of the Plan. Further, all ISOs and Tandem SARs granted in connection with ISOs granted to a Participant shall be exercisable during his or her lifetime only by such
Participant. 

  

	3.10.	The Committee may require a Participant to give prompt written notice to the Company concerning any disposition of Shares received upon the exercise of an ISO within:
(i) two (2) years from the date of granting such ISO to such Participant or (ii) one (1) year from the transfer of such Shares to such Participant or (iii) such other period as the Committee may from time to time determine.
The Committee may direct that a Participant with respect to an ISO undertake in the applicable Award Agreement to give such written notice described in the preceding sentence, at such time and containing such information as the Committee may
prescribe, and/or that the certificates evidencing Shares acquired by exercise of an ISO refer to such requirement to give such notice. 

  

	4.	DEFERRED COMPENSATION 

  

	4.1	It is the intention of the Company that no Award shall be deferred compensation subject to Code Section 409A unless and to the extent that the Committee
specifically determines otherwise as provided in section 4.2 of this Appendix, and the Plan and the terms and conditions of all Awards shall be interpreted and administered accordingly. 

 

	4.2	The terms and conditions governing any Awards that the Committee determines will be subject to Section 409A of the Code, including any rules for payment, including
elective or mandatory deferral of the payment or delivery of cash or Shares pursuant thereto, and any rules regarding treatment of such Awards in the event of a Change of Control, shall be set forth in the applicable Award Agreement and shall be
intended to comply in all respects with Section 409A of the Code, and the Plan and the terms and conditions of such Awards shall be interpreted and administered accordingly. 

  
 45 

	4.3	The Committee shall not extend the period to exercise an Option or Stock Appreciation Right to the extent that such extension would cause the Option or Stock
Appreciation Right to become subject to Code Section 409A. 

  

	4.4	Unless the Committee provides otherwise in an Award Agreement, each Restricted Stock Unit, Performance Unit, Performance Share, Cash-Based Award and/or Other
Stock-Based Award shall be paid in full to the Participant no later than the fifteenth day of the third month after the end of the first calendar year in which such Award is no longer subject to a “substantial risk of forfeiture” within
the meaning of Code Section 409A. If the Committee provides in an Award Agreement that a Restricted Stock Unit, Performance Unit, Performance Share, Cash-Based Award or Other Stock-Based Award is intended to be subject to Code
Section 409A, the Award Agreement shall include terms that are intended to comply in all respects with Code Section 409A. 

  

	4.5	No Dividend Equivalents shall relate to Shares underlying an Option or SAR unless such Dividend Equivalent rights are explicitly set forth as a separate arrangement and
do not cause any such Option or SAR to be subject to Code Section 409A. 

  

	4.6	Notwithstanding any other provision of the Plan or an Award Agreement to the contrary, no event or condition shall constitute a Change of Control with respect to an
Award to the extent that, if it were, a 20% additional income tax would be imposed under Section 409A of the Code on the Participant who holds such Award; provided that, in such a case, the event or condition shall continue to constitute
a Change of Control to the maximum extent possible (for example, if applicable, in respect of vesting without an acceleration of payment of such an Award) without causing the imposition of such 20% tax. 

 

	4.7	Although the Company intends to administer the Plan so that Awards will be exempt from, or will comply with, the requirements of Code Section 409A, the Company
does not warrant that any Award under the Plan will qualify for favorable tax treatment under Code Section 409A. 

  

	5.	SECTION 83(B) ELECTION 

If a Participant makes an election under Section 83(b) of the Code to be taxed with respect to an Award as of the date of transfer
of Shares rather than as of the date or dates upon which the Participant would otherwise be taxable under Section 83(a) of the Code, such Participant shall deliver a copy of such election to the Company prior to filing such election with the
United States Internal Revenue Service. Neither the Company nor any Subsidiary or Affiliate shall have any liability or responsibility relating to or arising out of the filing or not filing of any such election or any defects in its construction.

  

	6.	GOVERNING LAW AND JURISDICTION 

 This Appendix shall be governed by and construed and enforced in accordance with the laws of the State of Israel applicable to contracts made and to be performed therein, without giving effect to the
principles of conflict of laws. Unless otherwise provided in the Award Agreement, Participants are deemed to submit to the exclusive jurisdiction and venue of the courts in Tel-Aviv, Israel, to resolve any and all issues that may arise out of or
relate to this Appendix or any related Award Agreement. 

*        *        * 

  
 46 

 APPENDIX C — AUSTRALIA 

TO THE 
 CAESARSTONE SDOT-YAM LTD 
 2011 INCENTIVE COMPENSATION PLAN

  

	1.	GENERAL 

  

	1.1	This appendix (Appendix) applies only to Australian Participants who are residents of Australia for tax purposes. The provisions of this Appendix shall form part
of the CaesarStone Sdot-Yam Ltd 2011 Incentive Compensation Plan (Plan). 

  

	1.2	This Appendix is effective with respect to Awards granted as of [insert]. 

 

	1.3	This Appendix is to be read as a continuation of the Plan and only modifies Awards granted to Australian Participants so that they comply with the requirements set by
Australian law, as may be amended from time to time. For the avoidance of doubt, this Appendix does not add to or modify the Plan in respect of any other category of Participant. 

 

	1.4	The Plan and this Appendix are complimentary to each other and shall be deemed as one. Subject to section 1.3 above, in any case of contradiction, whether explicit or
implied, between any definitions and/or provisions of this Appendix and the Plan, the provisions set out in this Appendix shall prevail. 

  

	1.5	Any capitalized terms not specifically defined in this Appendix shall have the meaning given to that term in the Plan, provided however as specified in section 1.4
above, that to the extent that such definitions are provided for in the Plan and this Appendix, the definitions in this Appendix shall apply. 

  

	2.	DEFINITIONS 

  

	 	(a)	Approved Stock Exchange means any stock exchange on which the Company is listed; 

 

	 	(b)	Australian Company means Caesarstone Australia Pty Ltd; 

  

	 	(c)	Australian Participants means a person who holds on Option under the Plan and this Appendix; 

 

	 	(d)	Average Trading Price is the average price at which shares have traded on an Approved Stock Exchange on a volume weighted average price basis;

	 	(e)	Company means CaesarStone Sdot-Yam Ltd; 

  

	 	(f)	Certificate means, with respect to an Option, a certificate issued under the Rules in the form approved by the Committee from time to time;

  

	 	(g)	Date of Grant means, with respect to an Option, the date on which the Committee grants the Option to an Eligible Employee; 

 

	 	(h)	Eligible Employee means an Employee whom the Committee determines is to be issued Options under the Plan; 

 

	 	(i)	Exercise Conditions means the conditions (if any) that must be fulfilled before an option can be exercised; 

 

	 	(j)	Exercise Date means the date on which a Notice of Exercise is provided to the Company; 

 

	 	(k)	Exercise Period means the period beginning on the day after the Vesting Date and ending 7 years after the Date of Grant, or such other period as the Committee
may determine; 

  

	 	(l)	Exercise Price means the amount payable by the holder of an Option to exercise the Option; 

 

	 	(m)	Legal Personal Representative means the executor of the will or an administrator of the estate of a deceased person, the trustee of the estate of a person under
a legal disability or a person who holds an enduring power of attorney granted by another person; 

  

	 	(n)	Notice of Exercise means a duly completed and executed notice of exercise of an Option by a Participant, in the form approved by the Committee from time to time;

  

	 	(o)	Participant means a person who holds Options issued under the Plan and this Appendix and includes, if a Participant dies or becomes subject to a legal
disability, the Legal Personal Representative of the Participant; 

  

	 	(p)	Redundancy means the termination or cessation of a Participant’s employment or office with the Australian Company as a result of redundancy, as determined
by the Committee; 

  

	 	(q)	Rules means the rules governing the operation of the Plan set out in the Plan and this Appendix, as amended from time to time; 

 

	 	(r)	Special Circumstance means with respect to a Participant: 

  

	 	(i)	Total and Permanent Disablement; 

  

	 	(ii)	the death of the Participant; 

  

	 	(iii)	Redundancy of the Participant; and 

  
 48 

	 	(iv)	any other circumstances as the Committee may at any time determine (whether in relation to the Participant, a class of Participants, particular circumstances or a class
of circumstances) and whether before or after the Date of Grant; 

  

	 	(s)	Statement means a statement in the approved form and containing the information required in section 392-5 of Schedule 1 of the Tax Administration Act;

  

	 	(t)	Tax includes any tax (direct or indirect), levy, impost, GST, deduction, charge, rate, contribution, duty or withholding which is assessed (or deemed to be
assessed), levied, imposed or made by any government or any governmental, semi-governmental or judicial entity or authority together with any interest, penalty, fine, charge, fee or other amount assessed (or deemed to be assessed), levied, imposed
or made on or in respect of any or all of the foregoing; 

  

	 	(u)	Tax Administration Act means the Taxation Administration Act 1953 (Cth); 

 

	 	(v)	Trading Price is the price at which shares have traded on an Approved Stock Exchange; 

 

	 	(w)	Total and Permanent Disablement means the termination or cessation of a Participant’s employment with the Australian Company as a result of total and
permanent disablement, as determined by the Committee; 

  

	 	(x)	Trading Day means a day on which the relevant Approved Stock Exchange operates for trading; 

 

	 	(y)	Vesting Date means the earliest of: 

  

	 	(i)	the date on which the Options vest is accordance with the terms of this Plan and Appendix; and 

 

	 	(ii)	the seventh anniversary of the Date of Grant of the Options. 

  

	3.	PRINCIPAL CONDITIONS 

 No Options may be
issued to a person under the Plan unless the person remains an Employee as at the Date of Grant, or the Committee determines otherwise. 
  

	4.	ISSUE OF OPTIONS 

  

	4.1	Subject to these Rules, the Committee may from time to time determine that the Company will issue Options to an Eligible Employee. 

 

	4.2	The number of Options the subject of an issue to an Eligible Employee is as determined by the Committee. 

 

	4.3	The Exercise Price in respect of an Option is as determined by the Committee. 

 

	4.4	On the issue of an Option to an Eligible Employee, the Eligible Employee becomes a Participant and is bound by these Rules. 

  
 49 

	4.5	The Company, must give a Participant one or more Certificates stating: 

  

	 	(a)	the number of Options issued to the Participant; 

  

	 	(b)	the Exercise Price of those Options; 

  

	 	(c)	the last possible Exercise Date of those Options 

  

	 	(d)	the Date of Grant of those Options; 

  

	 	(e)	the Exercise Conditions (if any) attaching to the Options; and 

  

	 	(f)	any other specific terms and conditions applicable. 

  

	5.	VESTING OF OPTIONS 

  

	5.1	The vesting of any Options held by the Participant is subject to the Vesting Conditions set out in the Plan and this Appendix and the following conditions:

  

	 	(a)	the Participant must have been an Employee of the Australian Company or the Company or any of the Company’s other subsidiaries at all times between the Date of
Grant and the Vesting Date (inclusive); 

  

	 	(b)	where an Employee is granted Options from time to time, each grant of Options represents a separate bundle of Options (Option Bundle). Options will vest in
accordance with the following formula, unless the Committee otherwise determines: 

  

	 	(i)	25% of any Option Bundle, 12 months after the Date of Grant; 

  

	 	(ii)	a further 25% of any Option Bundle, 24 months after the Date of Grant; 

  

	 	(iii)	a further 25% of any Option Bundle, 36 months after the Date of Grant; 

  

	 	(iv)	a further 25% of any Option Bundle, 48 months after the Date of Grant. 

 For the avoidance of doubt, each Option Bundle is to be treated separately for the purposes of determining the number of Options that will vest from time to time; 

 

	 	(c)	Subject to the condition in clause 5.1(b), Options will vest only where the Average Trading Price of shares is 10% or more above the Exercise Price for the previous 5
Trading Days; 

  

	 	(d)	Subject to the conditions in clauses 5.1(b), if a Participant ceases to be an Employee of the Australian Company, Options will vest only where the Trading Price at any
time on the date the Participant ceases to be an Employee is higher than the Exercise Price. 

  

	 	(e)	any other conditions included in the Certificate; and 

  

	 	(f)	any other conditions imposed by the Committee in its absolute discretion, 

 (together the Vesting Conditions). 

  
 50 

	5.2	The Committee may, at its discretion, by notice to the Participant amend or waive the Vesting Conditions attaching to Options in whole or in part at any time and in any
particular case including due to a Special Circumstance. 

  

	6.	EXERCISE OF OPTIONS 

  

	6.1	An Option may be exercised at any time during the Exercise Period for that Option. 

 

	6.2	Subject to these Rules, Options which have not lapsed may be exercised by the Participant giving to the Company: 

 

	 	(a)	a Notice of Exercise signed by the Participant; 

  

	 	(b)	the Certificate for those Options; and 

  

	 	(c)	a cheque payable to the Company (or another form of payment acceptable to the Board) in the amount of the product of the number of Options then being exercised by the
Participant and the Exercise Price. 

  

	6.3	Subject to these Rules, on the exercise of an Option the Company must: 

  

	 	(a)	procure the transfer of a Share; or 

  

	 	(b)	issue and allot a Share, 

 to the
Participant. The Company may, as a condition to the issue or transfer of any Share to the Participant, require the Participant to accede to a shareholders agreement or other arrangement applying to Shareholders (if applicable). 

 

	6.4	The Company is not obliged to issue Shares on exercise of Options until: 

  

	 	(a)	any cheque received in payment of the Exercise Price has been honoured on presentation; or 

 

	 	(b)	any electronic funds transfer in payment of the Exercise Price has deposited cleared funds in the Company’s bank account. 

 

	6.5	Upon a Participant submitting a Notice of Exercise in respect of part of an Option Bundle, the Company must issue a Certificate stating the remaining number of Options
held by the Participant. 

  

	6.6	Unless otherwise provided in a Notice of Exercise, Shares issued on the exercise of Options rank equally with all existing Shares on and from the date of issue in
respect of all rights issues, bonus share issues and dividends which have a record date for determining entitlements on or after the date of issue of those Shares. 

 

	7.	LAPSE OF OPTIONS 

  

	7.1	Unless otherwise specified in the Certificate or determined otherwise by the Committee, an Option which has vested with the Participant lapses on the earlier of:

  

	 	(a)	the last day of the Exercise Period; 

  
 51 

	 	(b)	a determination of the Committee that the Option should lapse because the Participant, in the Committee’s opinion: 

 

	 	(i)	has been dismissed or removed from office for a reason which entitles the Australian Company to dismiss the Participant without notice; 

 

	 	(ii)	has committed an act of fraud, defalcation or gross misconduct in relation to the affairs of the Australian Company (whether or not charged with an offence); or

  

	 	(iii)	has done an act which brings the Company, the Australian Company or any other subsidiary of the Company into disrepute; and 

 

	 	(c)	the date determined by the Committee (which in no event will be more than six months) after the date of termination of employment of the Participant (other than due to
the occurrence of a Special Circumstance). 

  

	7.2	If a Participant fails for any reason to exercise all the Options registered in the Participant’s name before the occurrence of a circumstance set out in Rule 7.1,
those Options that the Participant would have been entitled to exercise and that have not been exercised lapse and all rights of a Participant under the Plan in respect of those Options cease. 

 

	8.	ADMINISTRATION OF THE PLAN 

  

	8.1	The company is not responsible for any Tax which may become payable by a Participant in connection with the issue of Shares pursuant to an exercise of Options or
another dealing by a Participant with the Options or Shares. 

  

	8.2	Issue of Tax Statement 

  

	 	(a)	The Company will if required by the Tax Administration Act, give a Participant a Statement in respect of their participation in the Plan. 

 

	 	(b)	The Company will provide the Statement by 14 July of the following income year or such other date as specified in the Tax Administration Act.

  

	9.	RIGHTS OF PARTICIPANTS 

  

	9.1	These Rules: 

  

	 	(a)	do not confer on an Employee the right to receive Options; 

  

	 	(b)	do not confer on a Participant the right to continue as an Employee; 

  

	 	(c)	do not affect any rights which the Company or the Australian Company may have to terminate the employment of a Participant; and 

 

	 	(d)	may not be used to increase damages in an action brought against the Company or a Subsidiary in respect of that termination. 

 

	9.2	Voting at general meetings 

Participants do not solely in their capacity as Participants, have any right to attend or vote at general meetings of the Company.

  
 52

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00200-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00200-of-00352.parquet"}]]