Document:

EX-10.2

 Exhibit 10.2 
 LGI HOMES, INC. 
 2013 EQUITY INCENTIVE PLAN 

1. Purpose of the Plan. The purpose of the Plan is to: (i) attract and retain the best available personnel for positions of
substantial responsibility, (ii) provide additional incentive to Employees, Directors and Consultants, and (iii) promote the success of the Company’s business. The Plan permits the grant of Incentive Stock Options, Nonstatutory Stock
Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Units, Performance Shares, and Other Stock-Based Awards. 
 2. Definition. As used in this Plan, the following definitions shall apply: 
 (a) “Administrator” means the Board or any of its Committees that shall be administering the Plan, in accordance with Section 4 of the Plan. 

(b) “Applicable Laws” means the requirements relating to the administration of equity-based awards or
equity compensation plans under U.S. federal and state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any foreign
country or jurisdiction where Awards are, or shall be, granted under the Plan. 
 (c) “Award”
means, individually or collectively, a grant under the Plan of Options, SARs, Restricted Stock, Restricted Stock Units, Performance Units, Performance Shares or Other Stock-Based Awards. 

(d) “Award Agreement” means the written or electronic agreement setting forth the terms and provisions
applicable to each Award granted under the Plan. The Award Agreement is subject to the terms and conditions of the Plan. 
 (e) “Awarded Stock” means the Common Stock subject to an Award. 
 (f) “Board” means the Board of Directors of the Company. 
 (g) “Cause” means as defined in an employment agreement or similar agreement between the Participant and the Company. If no such agreement exists, or if such an agreement exists but cause
is not defined therein, then “cause” means a termination of the Participant’s employment because of: (1) any act or omission that constitutes a material breach by the Participant of any of his obligations under the Plan or Award
Agreement; (2) the Participant’s conviction of, or plea of nolo contendere to, (A) any felony or (B) another crime involving dishonesty or moral turpitude or which could reflect negatively upon the Company or otherwise impair or
impede its operations; (3) the Participant’s engaging in any misconduct, negligence, act of dishonesty, violence or threat of violence (including any violation of federal securities laws) that is injurious to the Company or any of its
subsidiaries or affiliates; (4) the Participant’s material breach of a written policy of the Company or the rules of any governmental or regulatory body applicable to the Company; (5) the Participant’s refusal to follow the
directions of the Board; or (6) any other willful misconduct by the Participant which is materially injurious to the financial condition or business reputation of the Company or any of its subsidiaries or affiliates. Notwithstanding anything to
the contrary, Cause shall be determined in the sole discretion of the Board. 
 (h) “Change in
Control” means, except as otherwise provided in the Award Agreement, the occurrence of any of the following events: 

  
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 (i) Any “person” (as such term is used in Sections 13(d) and 14(d)
of the Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the total voting power represented by the Company’s
then outstanding voting securities; 
 (ii) the sale or disposition by the Company of all or substantially all of
the Company’s assets other than (A) the sale or disposition of all or substantially all of the assets of the Company to a person or persons who beneficially own, directly or indirectly, at least 50% or more of the combined voting power of
the outstanding voting securities of the Company at the time of the sale or (B) pursuant to a spin-off type transaction, directly or indirectly, of such assets to the Company’s stockholders; 

(iii) A change in the composition of the Board occurring within a one-year period as a result of which fewer than a
majority of the directors are Incumbent Directors. “Incumbent Directors” are directors who either (A) are Directors as of the effective date of the Plan, or (B) are elected, or nominated for election, to the Board with the
affirmative votes of at least a majority of the Incumbent Directors at the time of such election or nomination (but shall not include an individual whose election or nomination is in connection with an actual or threatened proxy contest relating to
the election of directors to the Company); or 
 (iv) a merger or consolidation of the Company with any other
corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities
of the surviving entity or its parent) at least 50% of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation. 

(i) “Code” means the Internal Revenue Code of 1986, as amended, and the U.S. Treasury regulations
promulgated thereunder. Any reference to a section of the Code shall be a reference to any successor or amended section of the Code. 
 (j) “Committee” means a committee of Directors or other individuals satisfying Applicable Laws appointed by the Board in accordance with Section 4 of the Plan. 

(k) “Common Stock” means the Common Stock of the Company, or in the case of Performance Units, Restricted
Stock Units, and certain Other Stock-Based Awards, the cash equivalent thereof, as applicable. 
 (l)
“Company” means LGI Homes, Inc., a Delaware corporation, and any successor to LGI Homes, Inc. 

(m) “Consultant” means any person, including an advisor, engaged by the Company or a Parent or Subsidiary
to render services to such entity. 
 (n) “Director” means a member of the Board. 

(o) “Disability” means as defined in an employment agreement or similar agreement between the Participant
and the Company. If no such agreement exists, or if such an agreement exists but disability is not defined therein, then “disability” means total and permanent disability as defined in Section 22(e)(3) of the Code, provided that in
the case of Awards other than Incentive Stock Options, the the term “disability” shall mean that the Participant: (i) is unable to engage in any substantial gainful 

  
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activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve
(12) months; (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving
income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Company; or (iii) is determined by the Social Security Administration to be disabled. Notwithstanding the
foregoing, the Participant shall not be considered to have incurred a “disability” unless he or she furnishes proof of such impairment sufficient to satisfy the Administrator in its sole discretion. 

(p) “Dividend Equivalent” means a credit, made at the sole discretion of the Administrator, to the
account of a Participant in an amount equal to the value of dividends paid on one Share for each Share represented by an Award held by such Participant. Under no circumstances shall the payment of a Dividend Equivalent be made contingent on the
exercise of an Option or Stock Appreciation Right. 
 (q) “Employee” means any person, including
officers and Directors, employed by the Company or any Parent or Subsidiary of the Company. Neither service as a Director nor payment of a director’s fee by the Company shall be sufficient to constitute “employment” by the Company.

 (r) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

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

 (i) If the Common Stock is listed on any established stock exchange or a national market system, including
without limitation the NASDAQ Global Select Market, the NASDAQ Global Market (formerly the NASDAQ National Market) or the NASDAQ Capital Market (formerly the NASDAQ SmallCap Market) of the NASDAQ Stock Market, the Fair Market Value shall be the
closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system for the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable;

 (ii) If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not
reported, the Fair Market Value of a Share of Common Stock shall be the mean between the high bid and low asked prices for the Common Stock for the day of determination, as reported in The Wall Street Journal or such other source as the
Administrator deems reliable; or 
 (iii) In the absence of an established market for the Common Stock, the Fair
Market Value shall be determined in good faith by the Administrator. 
 (iv) Notwithstanding the preceding, for
federal, state, and local income tax reporting purposes and for such other purposes as the Administrator deems appropriate, the Fair Market Value shall be determined by the Administrator in accordance with uniform and nondiscriminatory standards
adopted by it from time to time. 
 (t) “Incentive Stock Option” means an Option intended to
qualify and receive favorable tax treatment as an incentive stock option within the meaning of Section 422 of the Code, as designated in the applicable Award Agreement. 

  
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 (u) “Nonstatutory Stock Option” means an Option that by its
terms does not qualify or is not intended to qualify as an Incentive Stock Option. 
 (v)
“Option” means an option to purchase Common Stock granted pursuant to the Plan. 
 (w)
“Other Stock-Based Awards” means any other awards not specifically described in the Plan that are valued in whole or in part by reference to, or are otherwise based on, Shares and are created by the Administrator pursuant to
Section 12. 
 (x) “Outside Director” means an “outside director” within the
meaning of Section 162(m) of the Code. 
 (y) “Parent” means a “parent
corporation” with respect to the Company, whether now or hereafter existing, as defined in Section 424(e) of the Code. 
 (z) “Participant” means a Service Provider who has been granted an Award under the Plan. 
 (aa) “Performance Goals” means goals which have been established by the Committee in connection with an Award and are based on one or more of the following criteria, as determined by the
Committee in its absolute and sole discretion: net income; cash flow; cash flow on investment; pre-tax or post-tax profit levels or earnings; operating income or earnings; closings; return on investment; earned value added; expense reduction levels;
free cash flow; free cash flow per share; earnings per share; net earnings per share; net earnings from continuing operations; sales growth; sales volume; economic profit; expense reduction; controlled expenses; return on assets; return on net
assets; return on equity; return on capital; return on sales; return on invested capital; organic revenue; growth in managed assets; total shareholder return; stock price; stock price appreciation; EBITA; adjusted EBITA; EBITDA; adjusted EBITDA;
return in excess of cost of capital; profit in excess of cost of capital; net operating profit after tax; operating margin; profit margin; adjusted revenue; revenue; net revenue; operating revenue; net cash provided by operating activities; net cash
provided by operating activities per share; cash conversion percentage; new sales; net new sales; cancellations; gross margin; gross margin percentage; revenue before deferral; regulatory body approval for commercialization of a product;
implementation or completion of critical projects; research; in-licensing; out-licensing; product development; government relations; compliance; mergers; and acquisitions or sales of assets or subsidiaries. 

(bb) “Performance Period” means the time period during which the Performance Goals or performance
objectives must be met. 
 (cc) “Performance Share” means Shares issued pursuant to a
Performance Share Award under Section 10 of the Plan. 
 (dd) “Performance Unit” means,
pursuant to Section 10 of the Plan, an unfunded and unsecured promise to deliver Shares, cash or other securities equal to the value set forth in the Award Agreement. 

(ee) “Period of Restriction” means the period during which the transfer of Shares of Restricted Stock are
subject to restrictions and therefore, the Shares are subject to a substantial risk of forfeiture. Such restrictions may be based on the passage of time, the achievement of Performance Goals or other target levels of performance, or the occurrence
of other events as determined by the Administrator. 

  
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 (ff) “Plan” means this 2013 Equity Incentive Plan. The Plan
was approved by both the Board on and by the Company’s stockholders on August 23, 2013. 
 (gg)
“Restricted Stock” means Shares issued pursuant to a Restricted Stock Award under Section 8 or issued pursuant to the early exercise of an Option. 

(hh) “Restricted Stock Unit” means, pursuant to Sections 4 and 11 of the Plan, an unfunded and unsecured
promise to deliver Shares, cash or other securities equal in value to the Fair Market Value of one Share in the Company on the date of vesting or settlement, or as otherwise set forth in the Award Agreement. 

(ii) “Retirement” means, except as otherwise provided in an Award Agreement or unless the Board otherwise
determines, the later of (i) the date the Participant reaches 55 years of age and (ii) the Participants “separation from service” (as defined by Section 409A of the Code). 

(jj) “Rule 16b-3” means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3, as in effect when discretion is being exercised with respect to the Plan. 
 (kk) “Section 16(b)” means Section 16(b) of the Exchange Act. 
 (ll) “Service Provider” means an Employee, Director or Consultant. 
 (mm) “Share” means a share of Common Stock, as adjusted in accordance with Section 15 of the Plan. 

(nn) “Stock Appreciation Right” or “SAR” means, pursuant to Section 9 of the Plan,
an unfunded and unsecured promise to deliver Shares, cash or other securities equal in value to the difference between the Fair Market Value of a Share as of the date such SAR is exercised/settled and the Fair Market Value of a Share as of the date
such SAR was granted, or as otherwise set forth in the Award Agreement. 
 (oo) “Subsidiary”
means a “subsidiary corporation” with respect to the Company, whether now or hereafter existing, as defined in Section 424(f) of the Code. 
 3. Stock Subject to the Plan. 
 (a) Stock Subject to the
Plan. Subject to the provisions of Section 15 of the Plan, the maximum aggregate number of Shares that may be issued pursuant to all Awards under the Plan is one million five hundred thousand (1,500,000) Shares, all of which may be
subject to Incentive Stock Option treatment. The maximum aggregate number of Shares that may be issued pursuant to all awards under the Plan shall increase annually on the first day of each fiscal year following the adoption of the Plan by the
number of Shares equal to the lesser of (i) three percent (3%) of the total issued and outstanding common shares of the Company on the first day of such fiscal year, (ii) five hundred thousand (500,000) Shares, or (iii) such
lesser amount determined by the Board. Shares shall not be deemed to have been issued pursuant to the Plan with respect to any portion of an Award that is settled in cash. Upon payment in Shares pursuant to the exercise of an Award, the number of
Shares available for issuance under the Plan shall be reduced only by the number of Shares actually issued in such payment. If a Participant pays the exercise price (or purchase price, if applicable) of an Award through the tender of Shares, or if
Shares are 

  
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tendered or withheld to satisfy any withholding obligations of the Company, the number of Shares so tendered or withheld shall again be available for issuance pursuant to future Awards under the
Plan. 
 (b) Lapsed Awards. If any outstanding Award expires or is terminated or canceled without having
been exercised or settled in full, or if Shares acquired pursuant to an Award subject to forfeiture or repurchase are forfeited or repurchased by the Company, the Shares allocable to the terminated portion of the Award or the forfeited or
repurchased Shares shall again be available for grant under the Plan. 
 (c) Share Reserve. The Company,
during the term of the Plan, shall at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. 
 4. Administration of the Plan. 
 (a) Procedure.

 (i) Multiple Administrative Bodies. Different Committees with respect to different groups of Service
Providers may administer the Plan. 
 (ii) Section 162(m). To the extent that the Administrator
determines it to be desirable and necessary to qualify Awards granted under this Plan as “performance-based compensation” within the meaning of Section 162(m) of the Code, the Plan shall be administered by a Committee of two or more
Outside Directors. 
 (iii) Rule 16b-3. If a transaction is intended to be exempt under Rule 16b-3 of the
Exchange Act, it shall be structured to satisfy the requirements for exemption under Rule 16b-3. 
 (iv) Other
Administration. Other than as provided above, the Plan shall be administered by (A) the Board or (B) a Committee constituted to satisfy Applicable Laws. 

(v) Delegation of Authority for
Day-to-Day Administration. Except to the extent prohibited by Applicable Law, the Administrator may delegate to one or more individuals the day-to-day administration
of the Plan and any of the functions assigned to it in this Plan. Such delegation may be revoked at any time. 

(b) Powers of the Administrator. Subject to the provisions of the Plan, and in the case of a Committee, subject to
the specific duties delegated by the Board to the Committee, the Administrator shall have the authority, in its discretion to: 
 (i) determine the Fair Market Value of Awards; 
 (ii) select the
Service Providers to whom Awards may be granted under this Plan; 
 (iii) determine the number of Shares to be
covered by each Award granted under this Plan; 
 (iv) approve forms of Award Agreements for use under the Plan;

  
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 (v) determine the terms and conditions, not inconsistent with the terms of
the Plan, of any Award granted under this Plan, including but not limited to, the exercise price, the time or times when Awards may be exercised (which may be based on Performance Goals or other performance criteria), any vesting acceleration or
waiver of forfeiture or repurchase restrictions, and any restriction or limitation regarding any Award or the Shares relating thereto, based in each case on such factors as the Administrator, in its sole discretion, shall determine; 

(vi) construe and interpret the terms of the Plan and Awards granted pursuant to the Plan; 

(vii) prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to
the creation and administration of sub-plans; 
 (viii) amend the terms of any outstanding Award, including the
discretionary authority to extend the post-termination exercise period of Awards and accelerate the satisfaction of any vesting criteria or waiver of forfeiture or repurchase restrictions, provided that any
amendment that would adversely affect the Participant’s rights under an outstanding Award shall not be made without the Participant’s written consent. Notwithstanding the foregoing, an amendment shall not be treated as adversely affecting
the rights of the Participant if the amendment causes an Incentive Stock Option to become a Nonstatutory Stock Option or if the amendment is made to the minimum extent necessary to avoid the adverse tax consequences of Section 409A of the Code;

 (ix) allow Participants to satisfy withholding tax obligations by electing to have the Company withhold from
the Shares or cash to be issued upon exercise or vesting of an Award that number of Shares or cash having a Fair Market Value equal to the minimum amount required to be withheld. The Fair Market Value of any Shares to be withheld shall be determined
on the date that the amount of tax to be withheld is to be determined, and all elections by a Participant to have Shares or cash withheld for this purpose shall be made in such form and under such conditions as the Administrator may deem necessary
or advisable; 
 (x) authorize any person to execute on behalf of the Company any instrument required to effect
the grant of an Award previously granted by the Administrator; 
 (xi) allow a Participant to defer the receipt
of the payment of cash or the delivery of Shares that would otherwise be due to the Participant under an Award; 

(xii) determine whether Awards shall be settled in Shares, cash or in a combination of Shares and cash; 

(xiii) determine whether Awards shall be adjusted for Dividend Equivalents; 

(xiv) create Other Stock-Based Awards for issuance under the Plan; 

(xv) establish a program whereby Service Providers designated by the Administrator can reduce compensation otherwise
payable in cash in exchange for Awards under the Plan; 
 (xvi) impose such restrictions, conditions or
limitations as it determines appropriate as to the timing and manner of any resales by a Participant or other subsequent transfers by the Participant of any Shares issued as a result of or under an Award, including without limitation,
(A)

  
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restrictions under an insider trading policy, and (B) restrictions as to the use of a specified brokerage firm for such resales or other transfers; 

(xvii) establish one or more programs under the Plan to permit selected Participants the opportunity to elect to defer
receipt of consideration upon exercise of an Award, satisfaction of Performance Goals or other performance criteria, or other event that absent the election, would entitle the Participant to payment or receipt of Shares or other consideration under
an Award; and 
 (xviii) make all other determinations that the Administrator deems necessary or advisable for
administering the Plan. 
 The express grant in the Plan of any specific power to the Administrator shall not be construed as limiting any power
or authority of the Administrator. However, the Administrator may not exercise any right or power reserved to the Board. 
 (c) Effect of Administrator’s Decision. The Administrator’s decisions, determinations, actions and interpretations shall be final, conclusive and binding on all persons having an interest
in the Plan. 
 (d) Indemnification. The Company shall defend and indemnify members of the Board, officers
and Employees of the Company or of a Parent or Subsidiary whom authority to act for the Board, the Administrator or the Company is delegated (“Indemnitees”) to the maximum extent permitted by law against (i) all reasonable
expenses, including reasonable attorneys’ fees incurred in connection with the defense of any claim, investigation, action, suit or proceeding, or in connection with any appeal therein (collectively, a “Claim”), to which any of
them is a party by reason of any action taken or failure to act in connection with the Plan, or in connection with any Award granted under the Plan; and (ii) all amounts required to be paid by them in settlement the Claim (provided the
settlement is approved by the Company) or required to be paid by them in satisfaction of a judgment in any Claim. However, no person shall be entitled to indemnification to the extent he is determined in such Claim to be liable for gross negligence,
bad faith or intentional misconduct. In addition, to be entitled to indemnification, the Indemnitee must, within 30 days after written notice of the Claim, offer the Company, in writing, the opportunity, at the Company’s expense, to defend the
Claim. The right to indemnification shall be in addition to all other rights of indemnification available to the Indemnitee. 

5. Eligibility. Nonstatutory Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance
Units, Performance Shares, and Other Stock-Based Awards may be granted to Service Providers. Incentive Stock Options may be granted only to Employees. 
 6. Limitations. 
 (a) $100,000 Limitation for Incentive
Stock Options. Each Option shall be designated in the Award Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option. However, notwithstanding such designation, to the extent that the aggregate Fair Market Value of the Shares
with respect to which Incentive Stock Options are exercisable for the first time by a Participant during any calendar year (under all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such Options shall be treated as Nonstatutory
Stock Options. For purposes of this Section 6(a), Incentive Stock Options shall be taken into account in the order in which they were granted. The Fair Market Value of the Shares shall be determined as of the time the Options with respect to
such Shares are granted. 

  
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 (b) Special Annual Limits. Subject to Section 15 of the Plan,
the maximum number of Shares that may be subject to Options or Stock Appreciation Rights granted to any Service Provider in any calendar year shall equal five hundred thousand (500,000) Shares and contain an exercise price equal to the Fair
Market Value of the Common Stock as of the date of grant. Subject to Section 15 of the Plan, the maximum number of Shares that may be subject to Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units and Other
Stock-Based Awards granted to any Service Provider in any calendar year shall equal three hundred thousand (300,000) Shares. Subject to Section 15 of the Plan, the maximum dollar amount that may be subject to cash awards granted to any
Service Provider in any calendar year shall equal $2,000,000. Notwithstanding the foregoing Share limitations to the contrary, and subject to Section 15 of the Plan, any Award to a Service Provider who is a non-employee Director shall not
exceed the following Share limitations per calander year: (i) 300,000 (for Options and Stock Appreciation Rights) (ii) 100,000 (for Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units and Other
Stock-Based Awards). 
 7. Options. 

(a) Term of Option. The term of each Option shall be stated in the Award Agreement. In the case of an Incentive
Stock Option, the term shall be 10 years from the date of grant or such shorter term as may be provided in the Award Agreement. Moreover, in the case of an Incentive Stock Option granted to a Participant who, at the time the Incentive Stock Option
is granted, owns stock representing more than 10% of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Incentive Stock Option shall be five years from the date of grant or such
shorter term as may be provided in the Award Agreement. 
 (b) Option Exercise Price and Consideration.

 (i) Exercise Price. The per Share exercise price for the Shares to be issued pursuant to exercise of an
Option shall be determined by the Administrator, subject to the following: 
 (1) In the case of an Incentive
Stock Option 
 (A) granted to an Employee who, at the time the Incentive Stock Option is granted, owns stock
representing more than 10% of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price shall be no less than 110% of the Fair Market Value per Share on the date of grant.

 (B) granted to any Employee other than an Employee described in paragraph (A) immediately above, the per
Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date of grant. 
 (2)
In the case of a Nonstatutory Stock Option, the per Share exercise price shall be determined by the Administrator, but shall not be less than Fair Market Value per Share on the date of grant. 

(3) Notwithstanding the foregoing, Options may be granted with a per Share exercise price of less than 100% of the Fair
Market Value per Share on the date of grant pursuant to a transaction described in, and in a manner consistent with, Section 424(a) of the Code. 
 (ii) Waiting Period and Exercise Dates. At the time an Option is granted, the Administrator shall fix the period within which the Option may be exercised and shall determine any

  
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conditions that must be satisfied before the Option may be exercised. The Administrator, in its sole discretion, may accelerate the satisfaction of such conditions at any time. 

(c) Form of Consideration. The Administrator shall determine the acceptable form of consideration for exercising an
Option, including the method of payment. In the case of an Incentive Stock Option, the Administrator shall determine the acceptable form of consideration at the time of grant. Such consideration, to the extent permitted by Applicable Laws, may
consist entirely of: 
 (i) cash; 

(ii) check; 
 (iii) other Shares which meet the conditions established by the Administrator to avoid adverse accounting consequences (as determined by the Administrator); 

(iv) consideration received by the Company under a cashless exercise program implemented by the Company in connection with
the Plan; 
 (v) any combination of the foregoing methods of payment; or 

(vi) any other consideration and method of payment for the issuance of Shares permitted by Applicable Laws. 

(d) Exercise of Option. 
 (i) Procedure for Exercise; Rights as a Stockholder. Any Option granted under this Plan shall be exercisable according to the terms of the Plan and at such times and under such conditions as
determined by the Administrator and set forth in the Award Agreement. An Option shall be deemed exercised when the Company receives: (x) written or electronic notice of exercise (in accordance with the Award Agreement) from the person entitled
to exercise the Option, and (y) full payment for the Shares with respect to which the Option is exercised (including provision for any applicable tax withholding). Full payment may consist of any consideration and method of payment authorized
by the Administrator and permitted by the Award Agreement and the Plan. Shares issued upon exercise of an Option shall be issued in the name of the Participant or, if requested by the Participant, in the name of the Participant and his spouse. Until
the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to
the Awarded Stock, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such Shares promptly after the Option is exercised. No adjustment shall be made for a dividend or other right for which the record date is
prior to the date the Shares are issued, except as provided in Section 15 of the Plan or the applicable Award Agreement. Exercising an Option in any manner shall decrease the number of Shares thereafter available for sale under the Option, by
the number of Shares as to which the Option is exercised. 
 (ii) Termination of Relationship as a Service
Provider. If a Participant ceases to be a Service Provider, other than upon the Participant’s death or Disability, the Participant may exercise his Option within such period of time as is specified in the Award Agreement to the extent that
the Option is vested on the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the Option shall remain
exercisable for 30 days following the Participant’s termination after which the Option shall terminate. Unless otherwise provided by the Administrator, if on the date of 

  
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termination the Participant is not vested as to his entire Option, the Shares covered by the unvested portion of the Option shall revert to the Plan. If the Participant does not exercise his
Option as to all of the vested Shares within the time specified by the Award Agreement, the Option shall terminate, and the remaining Shares covered by the Option shall revert to the Plan. 

(iii) Disability of Participant. If a Participant ceases to be a Service Provider as a result of his Disability,
the Participant may exercise his Option, to the extent vested, within the time specified in the Award Agreement (but in no event later than the expiration of the term of the Option as set forth in the Award Agreement). If no time for exercise of the
Option on Disability is specified in the Award Agreement, the Option shall remain exercisable for 12 months following the Participant’s termination for Disability. Unless otherwise provided by the Administrator, on the date of termination for
Disability, the unvested portion of the Option shall revert to the Plan. If after termination for Disability, the Participant does not exercise his Option as to all of the vested Shares within the time specified by the Award Agreement, the Option
shall terminate and the remaining Shares covered by such Option shall revert to the Plan. 
 (iv) Death of
Participant. If a Participant dies while a Service Provider, the Option, to the extent vested, may be exercised within the time specified in the Award Agreement (but in no event may the Option be exercised later than the expiration of the term
of the Option as set forth in the Award Agreement), by the beneficiary designated by the Participant prior to his death; provided that such designation must be acceptable to the Administrator. If no beneficiary has been designated by the
Participant, then the Option may be exercised by the personal representative of the Participant’s estate, or by the persons to whom the Option is transferred pursuant to the Participant’s will or in accordance with the laws of descent and
distribution. If the Award Agreement does not specify a time within which the Option must be exercised following a Participant’s death, it shall be exercisable for 12 months following his death. Unless otherwise provided by the Administrator,
if at the time of death, the Participant is not vested as to his entire Option, the Shares covered by the unvested portion of the Option shall immediately revert to the Plan. If the Option is not exercised as to all of the vested Shares within the
time specified by the Administrator, the Option shall terminate, and the remaining Shares covered by such Option shall revert to the Plan. 
 8. Restricted Stock. 
 (a) Grant of Restricted Stock.
Subject to the terms and provisions of the Plan, the Administrator, at any time and from time to time, may grant Shares of Restricted Stock to Service Providers in such amounts as the Administrator, in its sole discretion, shall determine.

 (b) Restricted Stock Agreement. Each Award of Restricted Stock shall be evidenced by an Award Agreement
that shall specify the Period of Restriction, the number of Shares granted, and such other terms and conditions as the Administrator, in its sole discretion, shall determine. Unless the Administrator determines otherwise, Shares of Restricted Stock
shall be held by the Company as escrow agent until the restrictions on the Shares have lapsed. 
 (c) Removal
of Restrictions. Except as otherwise provided in this Section 8, Shares of Restricted Stock covered by each Award made under the Plan shall be released from escrow as soon as practical after the last day of the Period of Restriction. The
Administrator, in its sole discretion, may accelerate the time at which any restrictions shall lapse or be removed. 
 (d) Voting Rights. During the Period of Restriction, Service Providers holding Shares of Restricted Stock may exercise full voting rights with respect to those Shares, unless the Administrator
determines otherwise. 

  
 11 

 (e) Dividends and Other Distributions. During the Period of
Restriction, Service Providers holding Shares of Restricted Stock shall be entitled to receive all dividends and other distributions paid with respect to such Shares unless otherwise provided in the Award Agreement. If any dividends or distributions
are paid in Shares, the Shares shall be subject to the same restrictions on transferability and forfeitability as the Shares of Restricted Stock with respect to which they were paid. 

(f) Return of Restricted Stock to Company. On the date set forth in the Award Agreement, the Restricted Stock for
which restrictions have not lapsed shall revert to the Company and again shall become available for grant under the Plan. 
 9.
Stock Appreciation Rights 
 (a) Grant of SARs. Subject to the terms and conditions of the Plan, a
SAR may be granted to Service Providers at any time and from time to time as shall be determined by the Administrator, in its sole discretion. The Administrator shall have complete discretion to determine the number of SARs granted to any Service
Provider. The Administrator, subject to the provisions of the Plan, shall have complete discretion to determine the terms and conditions of SARs granted under the Plan, including the sole discretion to accelerate exercisability at any time.

 (b) SAR Agreement. Each SAR grant shall be evidenced by an Award Agreement that shall specify the
exercise price, the term, the conditions of exercise, and such other terms and conditions as the Administrator, in its sole discretion, shall determine. 
 (c) Expiration of SARs. A SAR granted under the Plan shall expire upon the date determined by the Administrator, in its sole discretion, as set forth in the Award Agreement. Notwithstanding the
foregoing, the rules of Sections 7(d)(ii), 7(d)(iii) and 7(d)(iv) shall also apply to SARs. 
 (d) Payment of
SAR Amount. Upon exercise of a SAR, a Participant shall be entitled to receive payment from the Company in an amount determined by multiplying: 
 (i) The difference between the Fair Market Value of a Share on the date of exercise over the exercise price; times 
 (ii) The number of Shares with respect to which the SAR is exercised. 
 (iii) At the sole discretion of the Administrator, the payment upon the exercise of a SAR may be in cash, in Shares of equivalent value, or in some combination thereof. 

10. Performance Units and Performance Shares. 

(a) Grant of Performance Units and Performance Shares. Subject to the terms and conditions of the Plan, Performance
Units and Performance Shares may be granted to Service Providers at any time and from time to time, as shall be determined by the Administrator in its sole discretion. The Administrator shall have complete discretion in determining the number of
Performance Units and Performance Shares granted to each Service Provider. 
 (b) Value of Performance Units
and Performance Shares. Each Performance Unit shall have an initial value established by the Administrator on or before the date of grant. Each Performance Share shall have an initial value equal to the Fair Market Value of a Share on the date
of grant. 

  
 12 

 (c) Performance Objectives and Other Terms. The Administrator shall
set Performance Goals or other performance objectives in its sole discretion which, depending on the extent to which they are met, shall determine the number or value of Performance Units and Performance Shares that shall be paid out to the
Participant. Each award of Performance Units or Performance Shares shall be evidenced by an Award Agreement that shall specify the Performance Period and such other terms and conditions as the Administrator in its sole discretion shall determine.
The Administrator may set Performance Goals or performance objectives based upon the achievement of Company-wide, divisional, or individual goals (including solely continued service), applicable federal or
state securities laws, or any other basis determined by the Administrator in its sole discretion. 
 (d)
Earning of Performance Units and Performance Shares. After the applicable Performance Period has ended, the holder of Performance Units or Performance Shares shall be entitled to receive a payout of the number of Performance Units or
Performance Shares earned by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding Performance Goals or performance objectives have been achieved. After the grant of Performance Units or
Performance Shares, the Administrator, in its sole discretion, may reduce or waive any performance objectives for the Performance Unit or Performance Share. 
 (e) Form and Timing of Payment of Performance Units and Performance Shares. Payment of earned Performance Units and Performance Shares shall be made after the expiration of the applicable
Performance Period at the time determined by the Administrator. The Administrator, in its sole discretion, may pay earned Performance Units and Performance Shares in the form of cash, in Shares (which have an aggregate Fair Market Value equal to the
value of the earned Performance Units or Performance Shares, as applicable, at the close of the applicable Performance Period) or in a combination of cash and Shares. 

(f) Cancellation of Performance Units or Performance Shares. On the date set forth in the Award Agreement, all
unearned or unvested Performance Units and Performance Shares shall be forfeited to the Company, and again shall be available for grant under the Plan. 
 11. Restricted Stock Units. Restricted Stock Units shall consist of a Restricted Stock, Performance Share or Performance Unit Award that the Administrator, in its sole discretion permits to be paid
out in a lump sum, installments or on a deferred basis, in accordance with rules and procedures established by the Administrator 
 12. Other Stock-Based Awards. Other Stock-Based Awards may be granted either alone, in addition to, or in tandem with, other Awards granted under the Plan and/or cash awards made outside of the
Plan. The Administrator shall have authority to determine the Service Providers to whom and the time or times at which Other Stock-Based Awards shall be made, the amount of such Other Stock-Based Awards, and all other conditions of the Other
Stock-Based Awards, including any dividend or voting rights and whether the Award should be paid in cash. 
 13. Leaves of
Absence. Unless the Administrator provides otherwise, vesting of Awards granted under this Plan shall be suspended during any unpaid leave of absence and shall resume on the date the Participant returns to work on a regular schedule as
determined by the Company; provided, however, that no vesting credit shall be awarded for the time vesting has been suspended during such leave of absence. A Service Provider shall not cease to be an Employee in the case of (i) any leave of
absence approved by the Company or (ii) transfers between locations of the Company or between the Company, its Parent, or any Subsidiary. For purposes of Incentive Stock Options, no leave of absence may exceed 90 days, unless reemployment upon
expiration of such leave is guaranteed by statute or contract. If reemployment upon expiration of a leave of absence approved by the Company is not 

  
 13 

 
guaranteed by statute or contract, then at the end of three months following the expiration of the leave of absence, any Incentive Stock Option held by the Participant shall cease to be treated
as an Incentive Stock Option and shall be treated for tax purposes as a Nonstatutory Stock Option. 
 14. Non-Transferability
of Awards. Unless determined otherwise by the Administrator, an Award may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by shall or by the laws of descent or distribution and may be exercised,
during the lifetime of the Participant, only by the Participant. If the Administrator makes an Award transferable, such Award shall contain such additional terms and conditions as the Administrator deems appropriate. 

15. Adjustments; Dissolution or Liquidation; Change in Control. 

(a) Adjustments. In the event of any change in the outstanding Shares of Common Stock by reason of any stock split,
stock dividend or other non-recurring dividends or distributions, recapitalization, merger, consolidation, spin-off, combination, repurchase or exchange of stock,
reorganization, liquidation, dissolution or other similar corporate transaction that affects the Common Stock, an adjustment shall be made, as the Administrator deems necessary or appropriate, in order to prevent dilution or enlargement of the
benefits or potential benefits intended to be made available under the Plan. Such adjustment may include an adjustment to the number and class of Shares which may be delivered under the Plan, the number, class and price of Shares subject to
outstanding Awards, the number and class of Shares issuable pursuant to Options, and the numerical limits in Sections 3 and 6(b). Notwithstanding the preceding, the number of Shares subject to any Award always shall be a whole number. 

(b) Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the
Administrator shall notify each Participant as soon as practical prior to the effective date of the proposed transaction. The Administrator, in its sole discretion, may provide for a Participant to have the right to exercise his Award, to the extent
applicable, until 10 days prior to the transaction as to all of the Awarded Stock covered thereby, including Shares as to which the Award would not otherwise be exercisable. In addition, the Administrator may provide that any Company repurchase
option or forfeiture rights applicable to any Award shall lapse 100%, and that any Award vesting shall accelerate 100%, provided the proposed dissolution or liquidation takes place at the time and in the manner contemplated. To the extent it has not
been previously exercised or vested, an Award shall terminate immediately prior to the consummation of such proposed action. 
 (c) Change in Control. This Section 15(c) shall apply except to the extent otherwise provided in the Award Agreement. 

(i) Stock Options and SARs. In the event of a Change in Control, the Participant shall fully vest in and have the
right to exercise each outstanding Option and SAR as to all of the Awarded Stock, including Shares as to which it would not otherwise be vested or exercisable. The Administrator shall notify the Participant in writing or electronically that the
Option or SAR shall be exercisable, to the extent vested, for a period of up to 15 days from the date of such notice, and the Option or SAR shall terminate upon the expiration of such period. 

(ii) Restricted Stock, Performance Shares, Performance Units, Restricted Stock Units and Other Stock-Based Awards.
In the event of a Change in Control, the Participant shall fully vest in each outstanding Award of Restricted Stock, Restricted Stock Unit, Performance Share, Performance Unit, and Other Stock-Based
Award, including as to Shares or Units that would not otherwise be vested, all applicable restrictions shall lapse, and all performance objectives and other vesting criteria shall be deemed achieved at targeted levels. 

  
 14 

 16. Date of Grant. The date of grant of an Award shall be, for all purposes, the date
on which the Administrator makes the determination granting such Award, or a later date as is determined by the Administrator. Notice of the determination shall be provided to each Participant within a reasonable time after the date of such grant.

 17. Board and Stockholder Approval; Term of Plan. The Board and the Company’s stockholders approved the Plan on
August 23, 2013, to be effective immediately prior to the effectiveness of the Company’s Form S-1 Registration Statement. From its effectiveness, the Plan shall continue in effect for a term of ten years unless terminated earlier under
Section 18 of the Plan. 
 18. Amendment and Termination of the Plan. 

(a) Amendment and Termination. The Board may at any time amend, alter, suspend or terminate the Plan. 

(b) Stockholder Approval. The Company shall obtain stockholder approval of any Plan amendment to the extent
necessary to comply with Applicable Laws. 
 (c) Effect of Amendment or Termination. No amendment,
alteration, suspension, or termination of the Plan shall materially or adversely impair the rights of any Participant, unless otherwise mutually agreed upon by the Participant and the Administrator, which agreement must be in writing and signed by
the Participant and the Company. Termination of the Plan shall not affect the Administrator’s ability to exercise the powers granted to it under this Plan with respect to Awards granted under the Plan prior to the date of termination.

 19. Conditions upon issuance of shares. 

(a) Legal Compliance. Shares shall not be issued pursuant to the exercise of an Award unless the exercise of the
Award and the issuance and delivery of such Shares shall comply with Applicable Laws and shall be further subject to the approval of counsel for the Company with respect to such compliance. 

(b) Investment Representations. As a condition to the exercise or receipt of an Award, the Company may require the
person exercising or receiving the Award to represent and warrant at the time of any such exercise or receipt that the Shares are being purchased only for investment and without any present intention to sell or distribute the Shares if, in the
opinion of counsel for the Company, such a representation is required. 
 (c) Taxes. No Shares shall be
delivered under the Plan to any Participant or other person until the Participant or other person has made arrangements acceptable to the Administrator for the satisfaction of any non-U.S., U.S.-federal, U.S.-state, or local income and employment tax withholding obligations, including, without limitation, obligations incident to the receipt of Shares. Upon
exercise or vesting of an Award, the Company shall withhold or collect from the Participant an amount sufficient to satisfy such tax obligations, including, but not limited to, by surrender of the whole number of Shares covered by the Award
sufficient to satisfy the minimum applicable tax withholding obligations incident to the exercise or vesting of an Award. 
 20.
Severability. Notwithstanding any contrary provision of the Plan or an Award to the contrary, if any one or more of the provisions (or any part thereof) of this Plan or the Awards shall be held invalid, illegal, or unenforceable in any
respect, such provision shall be modified so as to make it valid, 

  
 15 

 
legal, and enforceable, and the validity, legality, and enforceability of the remaining provisions (or any part thereof) of the Plan or Award, as applicable, shall not in any way be affected or
impaired thereby. 
 21. Inability to Obtain Authority. The inability of the Company to obtain authority from any
regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or
sell such Shares as to which such requisite authority shall not have been obtained. 
 22. No Rights to Awards. No
eligible Service Provider or other person shall have any claim to be granted any Award pursuant to the Plan, and neither the Company nor the Administrator shall be obligated to treat Participants or any other person uniformly. 

23. No Stockholder Rights. Except as otherwise provided in an Award Agreement, a Participant shall have none of the rights of a
stockholder with respect to Shares covered by an Award until the Participant becomes the record owner of the Shares. 
 24.
Fractional Shares. No fractional Shares shall be issued and the Administrator shall determine, in its sole discretion, whether cash shall be given in lieu of fractional Shares or whether such fractional Shares shall be eliminated by rounding
up or down as appropriate. 
 25. Governing Law. The Plan, all Award Agreements, and all related matters, shall be
governed by the laws of the State of Texas, without regard to choice of law principles that direct the application of the laws of another state. 
 26. No Effect on Terms of Employment or Consulting Relationship. The Plan shall not confer upon any Participant any right as a Service Provider, nor shall it interfere in any way with his right or
the right of the Company or a Parent or Subsidiary to terminate the Participant’s service at any time, with or without cause, and with or without notice. 
 27. Unfunded Obligation. This Section 27 shall only apply to Awards that are not settled in Shares. Participants shall have the status of general unsecured creditors of the Company. Any
amounts payable to Participants pursuant to the Plan shall be unfunded and unsecured obligations for all purposes, including, without limitation, Title I of the Employee Retirement Income Security Act of 1974, as amended. Neither the Company nor any
Parent or Subsidiary shall be required to segregate any monies from its general funds, or to create any trusts, or establish any special accounts with respect to such obligations. The Company shall retain at all times beneficial ownership of any
investments, including trust investments, which the Company may make to fulfill its payment obligations under this Plan. Any investments or the creation or maintenance of any trust for any Participant account shall not create or constitute a trust
or fiduciary relationship between the Administrator, the Company or any Parent or Subsidiary and Participant, or otherwise create any vested or beneficial interest in any Participant or the Participant’s creditors in any assets of the Company
or Parent or Subsidiary. The Participants shall have no claim against the Company or any Parent or Subsidiary for any changes in the value of any assets that may be invested or reinvested by the Company with respect to the Plan. 

28. Section 409A. It is the intention of the Company that no Award shall be “deferred compensation” subject to
Section 409A of the Code, unless and to the extent that the Administrator specifically determines otherwise, and the Plan and the terms and conditions of all Awards shall be interpreted accordingly. The following rules shall apply to Awards
intended to be subject to Section 409A of the Code (“409A Awards”): 

  
 16 

 (a) Any distribution of a 409A Award following a separation from service
that would be subject to Section 409A(a)(2)(A)(i) of the Code as a distribution following a separation from service of a “specified employee” (as defined under Section 409A(a)(2)(B)(i) of the Code) shall occur no earlier than the
expiration of the six-month period following such separation from service. 
 (b) In the case of a 409A Award providing for distribution or settlement upon vesting or lapse of a risk of forfeiture, if the time of such distribution or settlement is not otherwise specified in the
Plan or Award Agreement or other governing document, the distribution or settlement shall be made no later than March 15 of the calendar year following the calendar year in which such 409A Award vested or the risk of forfeiture lapsed.

 (c) In the case of any distribution of any other 409A Award, if the timing of such distribution is not
otherwise specified in the Plan or Award Agreement or other governing document, the distribution shall be made not later than the end of the calendar year during which the settlement of the 409A Award is specified to occur. 

29. Construction. Headings in this Plan are included for convenience and shall not be considered in the interpretation of the
Plan. References to sections are to Sections of this Plan unless otherwise indicated. Pronouns shall be construed to include the masculine, feminine, neutral, singular or plural as the identity of the antecedent may require. This Plan shall be
construed according to its fair meaning and shall not be strictly construed against the Company. 
 30. Compensation
Recoupment. All compensation and Awards payable or paid under the Plan and any sub-plans shall be subject to the Company’s ability to recover incentive-based compensation from executive officers, as is required by the provisions of the
Dodd-Frank Wall Street Reform and Consumer Protection Act, any regulations or rules promulgated thereunder, or any other “clawback” provision required by applicable law or the listing standards of any applicable stock exchange or
national market system. 
 *     *     *    
*     * 

  
 17EX-10.3

 EXHIBIT 10.3 
 LGI HOMES, INC. 
 ANNUAL BONUS PLAN 

ARTICLE 1 

ESTABLISHMENT AND PURPOSE 
 1.1 Purpose. LGI Homes, Inc., a Delaware corporation (the “Company”) hereby establishes this Annual Bonus Plan (the “Plan”) as a sub-plan to the
Company’s Equity Incentive Plan. The Plan is intended to increase stockholder value and the success of the Company by motivating key executives to perform to the best of their abilities and to achieve the objectives set forth by the
Compensation Committee of the Board of Directors (the “Committee”). The Plan and any payouts hereunder are intended to qualify as performance-based compensation under Section 162(m) of the Code. 

1.2 Sub-Plan to the Equity Incentive Plan. In accordance with Article 4 of the Equity Incentive Plan, the Plan shall be a sub-plan
thereunder and is therefore subject to all the terms of the Equity Incentive Plan. 
 1.3 Effective Date. The Plan was
adopted by the Board on August 23, 2013, to be effective immediately prior to the effectiveness of the Company’s Form S-1 Registration Statement. 
 ARTICLE 2 
 DEFINITIONS 

Except as otherwise defined under the Equity Incentive Plan, the following terms shall have the following meanings (unless the context
clearly requires a different meaning): 
 2.1 “Actual Award” means the actual award (if any) payable to
a Participant for the Performance Period. The Actual Award is determined by the Payout Formula for the Performance Period, subject to the Committee’s authority under Section 3.5 to reduce the award otherwise determined by the Payout
Formula. 
 2.2 “Base Salary” means as to any Performance Period, 100% of the Participant’s salary
he or she earned for the applicable Performance Period. Such Base Salary shall be determined prior to any deductions for taxes or benefits and prior to any deferrals of compensation pursuant to a Company-sponsored employee benefit plan. 

2.3 “Board” means the Board of Directors of the Company. 

2.4 “Code” means the Internal Revenue Code of 1986, as amended. 

2.5 “Committee” means a committee selected by the Board to administer the Plan (or a subcommittee thereof)
composed of not less than two directors, each of whom is an 

  
 1 

 
“outside director” (within the meaning of Section 162(m) of the Code). If a Committee member shall fail to qualify as an “outside director” when administering the Plan
with respect to a Target Award, such failure shall not invalidate any such Target Award granted by the Committee if such Target Award is otherwise validly granted. 
 2.6 “Company” means LGI Homes, Inc., a Delaware corporation, and its successors. 
 2.7 “Determination Date” means as to any Performance Period, the later of (i) the first day of the Performance Period, or (ii) the latest date possible which will not
jeopardize the qualification of the payment as performance-based compensation under Section 162(m) of the Code. 
 2.8
“Effective Date” means immediately prior to the effectiveness of the Company’s Form S-1 Registration Statement. 
 2.9 “Equity Incentive Plan” means the LGI Homes, Inc. 2013 Equity Incentive Plan. The Plan shall be a sub-plan to the Equity Incentive Plan. 

2.10 “Maximum Award” means as to any Participant for any Performance Period, two million dollars ($2,000,000.00).
The Maximum Award is the maximum amount which may be paid to a Participant for any Performance Period. 
 2.11
“Participant” means as to any Performance Period, an officer or other employee of the Company who has been selected by the Committee to participate in the Plan for the applicable Performance Period. 

2.12 “Payout Formula” means as to any Performance Period, the formula or payout matrix established by the
Committee pursuant to Section 3.4, in order to determine the Actual Awards (if any) to be paid to Participants. The formula or matrix may differ from Participant to Participant. 

2.13 “Performance Goal” means as defined in the Equity Incentive Plan. 

2.14 “Performance Period” means any calendar year beginning on or after January 1, 2013, except that
for the partial year that includes the Effective Date, the Performance Period shall be the stub year. 
 2.15
“Plan” means this Annual Bonus Plan, a sub-plan to the Equity Incentive Plan. 
 2.16 “Target
Award” means the target award payable under the Plan to a Participant for the Performance Period, expressed as a percentage of his or her Base Salary or an amount, as determined by the Committee in accordance with Section 3.3.

  
 2 

 ARTICLE 3 
 SELECTION OF PARTICIPANTS AND DETERMINATION OF AWARDS 
 3.1 Selection of
Participants. On or prior to the Determination Date, the Committee, in its sole discretion, shall select the employees of the Company who shall be Participants for the Performance Period. In selecting Participants, the Committee shall
choose employees who are likely to have a significant impact on the performance of the Company. Participation in the Plan is in the sole discretion of the Committee and on a Performance Period by Performance Period basis. Accordingly, an
employee who is a Participant for a given Performance Period in no way is guaranteed or assured of being selected as a Participant for any subsequent Performance Period. 
 3.2 Determination of Performance Goals. On or prior to the Determination Date, the Committee, in its sole discretion, shall establish the Performance Goals for each Participant for the Performance
Period. Such Performance Goals shall be set forth in writing. 
 3.3 Determination of Target Awards. On or prior to the
Determination Date, the Committee shall establish a Target Award for each Participant. Each Participant’s Target Award shall be determined by the Committee in its sole discretion, and each Target Award shall be set forth in writing. 

3.4 Determination of Payout Formula. On or prior to the Determination Date, the Committee, in its sole discretion, shall establish
a Payout Formula for purposes of determining the Actual Award (if any) payable to each Participant. Each Payout Formula shall (i) be in writing, (ii) be based on a comparison of actual performance to the Performance
Goals, (iii) provide for the payment of a Participant’s Target Award if the Performance Goals for the Performance Period are achieved, and (iv) provide for an Actual Award greater than or less than the Participant’s Target
Award, depending upon the extent to which actual performance exceeds or falls below the Performance Goals. Notwithstanding the preceding, no Participant’s Actual Award under the Plan may exceed the Maximum Award. 

3.5 Determination of Actual Awards. As soon as administratively practicable after the end of each Performance Period, the
Committee shall certify in writing the extent to which the Performance Goals applicable to each Participant for the Performance Period were achieved or exceeded. The Actual Award for each Participant shall be determined by applying the Payout
Formula to the level of actual performance which has been certified by the Committee. Notwithstanding any contrary provision of the Plan: (i) the Committee, in its sole discretion, may eliminate or reduce the Actual Award payable to any
Participant that would otherwise be payable under the Payout Formula; and (ii) if a Participant’s employment with the Company is terminated by the Company for a reason other than Cause prior to the date the Actual Award for the Performance
Period is paid, the Committee shall reduce his or her Actual Award proportionately based on the date of termination (and subject to further reduction or elimination under clause (i) of this sentence). 

  
 3 

 ARTICLE 4 
 PAYMENT OF AWARDS 
 4.1 Right to Receive Payment. Each Actual Award
that may become payable under the Plan shall be paid solely from the general assets of the Company. Nothing in the Plan shall be construed to create a trust or security interest, or to establish or evidence any Participant’s claim of any right
other than as an unfunded, unsecured general creditor with respect to any payment to which he or she may be entitled. 
 4.2
Timing of Payment. Payment of each Actual Award shall be made within ten (10) days from conclusion of the audit related to the applicable Performance Period; provided, however, that payment of an Actual Award shall be made no
later than March 15 of the calendar year following the calendar year in which such Actual Award vested or the risk of forfeiture lapsed. Notwithstanding the foregoing, no payment of an Actual Award shall be made prior to the Committee’s
certification set forth in Section 3.5 of the Plan. 
 4.3 Form of Payment. Actual Awards shall be paid in cash (or
its equivalent) in a single lump sum. However, the Committee, in its sole discretion, may declare any Actual Award, in whole or in part, payable in the form of a stock bonus granted under the Equity Incentive Plan or successor equity incentive plan.
The number of shares granted shall be determined by dividing the cash amount of the Actual Award by the Fair Market Value of a share of Company common stock on the date that the cash payment otherwise would have been made. For this purpose, the term
Fair Market Value shall be as defined in the Equity Incentive Plan or successor equity incentive plan. 
 4.4 Payment in the
Event of Death. If a Participant dies prior to the payment of an Actual Award earned by him or her for a Performance Period, the Actual Award shall be paid to the Participant’s beneficiary. If a Participant fails to designate a beneficiary
or if each person designated as a beneficiary predeceases the Participant or dies prior to distribution of the Participant’s benefits, then the Committee shall direct the distribution of such benefits to the Participant’s estate.

 ARTICLE 5 
 ADMINISTRATION 
 5.1 Committee is the Administrator. The Plan shall
be administered by the Committee. 
 5.2 Committee Authority. The Committee shall have all discretion and authority
necessary or appropriate to administer the Plan and to interpret the provisions of the Plan, consistent with the qualification of the Plan as performance-based compensation under Section 162(m) of the Code. Any determination, decision or
action of the Committee in connection with the construction, interpretation, administration or application of the Plan shall be final, conclusive, and binding upon all persons, and shall be given the maximum deference permitted by law. 

  
 4 

 5.3 Tax Withholding. The Company shall withhold all applicable taxes from any
payment, including any non-U.S., federal, state, and local taxes. In the case of payment in the form of a stock bonus pursuant to Section 4.3, the granting and vesting of such stock bonus shall be subject to Section 19(c) (Conditions Upon
Issuance of Shares – Taxes) of the Equity Incentive Plan, or such comparable provisions of any successor plan regarding the withholding of taxes. 
 ARTICLE 6 
 GENERAL PROVISIONS 

6.1 Nonassignability. A Participant shall have no right to assign or transfer any interest under the Plan. 

6.2 No Effect on Employment; Coordination with Employment Agreements. The establishment and subsequent operation of the Plan,
including eligibility as a Participant, shall not be construed as conferring any legal or other rights upon any Participant for the continuation of his or her employment for any Performance Period or any other period. Employment with the Company is
on an at-will basis only. Except as may be provided in an employment contract with the Participant, the Company expressly reserves the right, which may be exercised at any time during a Performance Period, to terminate any individual’s
employment without cause and without regard to the effect such termination might have upon the Participant’s receipt of an Actual Award under the Plan. In the event of any inconsistency between the terms of the Plan and the terms of any
employment agreement between the Company and the Participant (whether now in effect or later adopted or amended), the terms of the Plan shall prevail; further, whether and to the extent any inconsistency exists shall be interpreted in the sole
discretion of the Committee. 
 6.3 Section 409A of the Code. The Plan, including any future amendments thereto
which do not expressly amend this Section 6.3, is designed, and shall be administered and operated, in the good faith determination of the Board or the Committee, to comply with, or be exempt from, Section 409A of the Code. Although the
Company intends to administer the Plan so that it complies with the requirements of Section 409A of the Code, the Company does not warrant that any Actual Award under the Plan will in fact comply with Section 409A or qualify for favorable
tax treatment under any other provision of federal, state, local or foreign law. The Company shall not be liable to any Participant for any tax, interest or penalties the Participant might owe as a result of its participation in the Plan.

 6.4 Savings Clause. The Plan is intended to comply in all respects with applicable laws and regulations. In case any
one or more of the provisions of the Plan shall be held invalid, illegal or unenforceable in any respect under applicable law or regulation, the validity, legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby and the invalid, illegal or unenforceable provision shall be deemed null and 

  
 5 

 
void; provided, however, to the extent permissible by law, any provision which could be deemed null and void shall first be construed, interpreted or revised retroactively to permit the Plan to
be construed in compliance with all applicable laws so as to foster the intent of the Plan. 
 6.5 Non-Alienation of
Benefits. Except to the extent set forth herein as to the rights of the estates or beneficiaries of employees to receive payments, Actual Awards under the Plan are non-assignable and non-transferable and are not subject to
anticipation, adjustment, alienation, encumbrance, garnishment, attachment or levy of any kind. 
 ARTICLE 7

 AMENDMENT AND TERMINATION 
 The Board or a duly authorized committee thereof may amend or terminate the Plan at any time and for any reason. 
 *     *     *     *     * 

  
 6

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