Document:

Employment Agreement, dated as of January 17, 2011

 Exhibit 10.12 
 EXECUTION VERSION 
 CONFIDENTIAL
EMPLOYMENT AGREEMENT 
 This CONFIDENTIAL EMPLOYMENT AGREEMENT (this “Agreement”) dated as of January 17,
2011 (the “Effective Date”), is made by and between Latrobe Steel Company, a Pennsylvania corporation doing business as Latrobe Specialty Steel Company (the “Company”), and B. Christopher DiSantis, an individual resident of the
State of Ohio (the “Executive”). Collectively, the Company and Executive are referred to in this Agreement as the “Parties.” 
 WHEREAS, the Company engages in the business of manufacturing and distributing high-performance, remelted materials for aerospace, defense, energy, hydrocarbon and other life-critical applications; and

 WHEREAS, the Company wishes to employ Executive as the President and Chief Executive Officer of the Company, and Executive
wishes to be so employed, pursuant to the terms and conditions set forth herein. 
 NOW, THEREFORE, in consideration of the
premises and the mutual covenants contained in this Agreement, the Parties, intending to be legally bound hereby, mutually agree as follows: 
 1. Employment; Board Membership. 
 (a) Title and
Duties. Commencing on the Effective Date, Executive shall be employed as the President and Chief Executive Officer of the Company and shall perform all duties and have all responsibilities and power commensurate with such positions, including
effective supervision and control over, and responsibility for the business and affairs of the Company, and the power and authority to establish, subject to the approval of the Board of Directors of the Company (the “Board”), the strategic
plans and budgets, and to manage the day-to-day operations of the Company, and employ and discharge employees of the Company. Notwithstanding the foregoing, Executive shall have the authority, without Board approval, to hire and discharge any
employees of the Company other than those employees who directly report to Executive. Executive agrees to perform such other duties reasonably assigned or delegated to him by the Board consistent with his position as the President and Chief
Executive Officer. Executive shall report solely and directly to the Board. If elected by the board of directors of Toolrock Holding, Inc., a Delaware corporation (“Toolrock”), or the board of directors of any direct or indirect subsidiary
of Toolrock or the Company, Executive will also serve as the President and Chief Executive Officer of Toolrock or any subsidiaries of Toolrock or the Company, as the case may be. 

(b) Relocation of Company’s Headquarters. During Executive’s employment under this Agreement, Executive
shall work, in conjunction with the Board, to relocate the Company’s headquarters from Latrobe, Pennsylvania to the Pittsburgh, Pennsylvania area (the “Relocated HQ”). Executive and the Board shall work together to determine the
timing, location, staffing and related matters of such relocation. 
 (c) Board Membership. Upon the
earlier of (i) the first filing by the Company or Toolrock of a Form S-1 with the Securities and Exchange Commission, or (ii) April 26, 2011, and continuing for the duration of Executive’s employment under this Agreement, the
Company 

 
shall use commercially reasonable efforts to ensure that Executive is elected to the Board and the board of directors of Toolrock, including nominating Executive during Executive’s
employment under this Agreement for election at the expiration of each of his terms. Executive agrees that if he is so elected, that he shall serve as a member of such boards. Executive will not participate as a director as to any deliberations made
or actions taken by the Board with respect to Executive, or with respect to all rights and obligations of the Company or the Board under this Agreement, it being agreed that the foregoing shall not serve to prevent Executive from participating in
deliberations or actions pertaining to a group of employees, which group includes Executive. Executive will also serve on such boards of directors of subsidiaries of the Company as requested by the Board. 

2. Term. The Company shall employ Executive until Executive’s employment is terminated in accordance with the terms and
conditions of this Agreement, it being understood that Executive will be employed as an at-will employee. As such, Executive’s employment may be terminated by Executive or the Company at any time for any reason or no reason. 

3. Compensation. 
 (a) Base Salary. The Company shall pay Executive an annual base salary (the “Base Salary”) of $425,000. The Board shall review the amount of Executive’s Base Salary in January, 2012,
and periodically thereafter, and may increase (but not decrease) such Base Salary, in its sole discretion. Such adjusted annual salary then shall become Executive’s “Base Salary” for purposes of this Agreement. Such Base Salary and
other compensation shall be payable in accordance with the Company’s normal payroll practices as in effect from time to time, and shall be subject to applicable deductions and withholdings as required by law, and as authorized by Executive.

 (b) Incentive Compensation. During Executive’s employment under this Agreement, Executive shall be
eligible to participate in an annual bonus plan, to be designed and implemented by the Company, whereby Executive will be eligible to receive an annual bonus with a target value of one hundred percent (100%) of the Base Salary then in effect.
For purposes of developing Executive’s 2011 annual bonus plan and determining Executive’s 2011 annual bonus, the Board shall consider Executive’s performance during the last six to eight months of the Company’s 2011 fiscal year.
The Board shall consider the proposed bands, targets and 2011 bonus plan at the Board Compensation Committee’s April, 2011 meeting. 
 (c) Equity. Concurrently with the execution and delivery of this Agreement, Toolrock and the Executive are entering into (i) a Stock Purchase Agreement in the form attached hereto as
Exhibit A (the “SPA”), pursuant to which Executive is purchasing 460,993 shares of common stock of Toolrock for a purchase price of $2.82 per share, in accordance with and subject to the terms and conditions of the SPA, and
(ii) an Incentive Stock Option Agreement in the form attached hereto as Exhibit B (the “Option Agreement”), pursuant to which Executive will have the right and option to purchase 900,000 shares of common stock of Toolrock for a
purchase price of $2.82 per share, in accordance with and subject to the terms and conditions of the Option Agreement. 
 (d) Benefits. During Executive’s employment under this Agreement, Executive shall be entitled to participate in all employee benefit plans or programs, including,

  
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but not limited to, health and welfare and 401(k) plans, generally available to other senior management employees of the Company, to the extent that Executive is eligible to participate under the
terms of each particular plan or program. The Company may eliminate any such benefit or change the terms thereof at any time or from time to time so long as such adjustment is applicable to all management employees of the Company. 

(e) Vacation. During Executive’s employment under this Agreement, Executive shall be entitled to four weeks of
paid vacation leave during each calendar year. All vacation is subject to, and must be taken in accordance with, the Company’s procedures and policies regarding vacation, as established from time to time. 

(f) Vehicle Allowance. During Executive’s employment under this Agreement, the Company shall pay Executive a
monthly automobile allowance in the amount of $1,000, and shall pay for or reimburse Executive for expenses regarding the operation, insurance and routine maintenance of such vehicle, including deductibles, fuel, parking, tolls and car washes
(collectively, the “Vehicle Allowance”). The Company shall also pay Executive an additional amount (the “Additional Payment”) such that, after payment by Executive of all income taxes imposed upon the Vehicle Allowance and the
Additional Payment, Executive retains such portion of the Additional Payment equal to the income tax imposed upon the Vehicle Allowance and the Additional Payment. 

(g) Expense Reimbursement. The Company shall reimburse Executive for all reasonable out-of-pocket business expenses
incurred by Executive in connection with the performance of Executive’s duties and responsibilities under this Agreement, including but not limited to all business expenses associated with Executive’s use of a club described in
Section 3(h), in accordance with, and subject to, Company’s procedures and policies regarding expense reimbursement, as established from time to time. 
 (h) Club Membership. During Executive’s employment under this Agreement, the Company will reimburse Executive for the cost of membership and basic monthly dues for a golf, tennis, social or
similar type of club in the Western Pennsylvania area. Executive shall be responsible for any personal use expenses associated with his use of such club. 
 (i) Young Presidents’ Organization Membership. During Executive’s employment under this Agreement, the Company will reimburse Executive for the cost of membership and basic annual or
monthly dues associated with Executive’s participation in a Young Presidents’ Organization (“YPO”), should Executive elect to join and be selected for membership. The Company also agrees to reimburse Executive for reasonable YPO
membership-related dues and the cost for Executive to attend local meetings and events for YPO. Executive agrees that any other reimbursement of YPO-related costs will be subject to prior approval by the Board. Executive further agrees that any
significant expenditure of time beyond the normal monthly YPO meetings will be subject to prior approval by the Board. 
 (j) Relocation. In accordance with the Company’s procedures and policies as established from time to time, the Company will provide reasonable relocation assistance to Executive.
Notwithstanding the foregoing, the Company agrees that Executive will not be limited in the number of house-hunting trips to Pittsburgh. The Company further agrees that it 

  
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will reimburse Executive for the actual monetary loss incurred by Executive on the sale of Executive’s current residence in Ohio if the net proceeds of such sale are less than the
Executive’s tax basis in such residence (the “Relocation Payment”). Furthermore, the Company shall pay Executive an Additional Payment such that, after payment by Executive of all income taxes imposed upon the Relocation Payment and
the Additional Payment, Executive retains such portion of the Additional Payment equal to the income tax imposed upon the Relocation Payment and the Additional Payment. 

(k) Interest on Late Payments. If the Company fails to timely make any payment to Executive that is required to be
made hereunder, the amount not timely paid shall bear interest after the date it is due hereunder at the rate of ten percent (10%) per annum, until payment is made. 
 4. Disability or Incapacity. 
 (a) If, because of illness or
otherwise, Executive should become disabled from performing his duties hereunder, Executive shall be entitled to a leave of absence from the Company for the duration of any such disability for a period or periods of up to, but not exceeding, one
hundred eighty (180) days in the aggregate in any period of three hundred sixty five (365) consecutive days. During any such leave of absence, Executive’s compensation and status as an employee hereunder shall continue as provided
herein; provided, however, that amounts, if any, payable to Executive under any short term or long term disability plan of the Company will be offset against Executive’s compensation which is payable under this Agreement. 

(b) Executive shall be deemed to be “Permanently Incapacitated” under this Agreement only if and when such
leaves of absence (whether continuous or intermittent) for disability shall have continued for more than one hundred eighty (180) days in the aggregate in any period of three hundred sixty five (365) consecutive days, and thereafter, upon
impartial medical advice which shall have been certified to the Company that the disability is such that it will substantially impair Executive’s ability to perform the essential functions of his job, with or without reasonable accommodation.

 (c) In calculating the period of three hundred sixty five (365) consecutive days set forth in
Section 4(a) and (b) of this Agreement, that period shall be deemed to begin on the first day of the calendar month during which Executive is first absent on account of the state or condition which leads to his permanent incapacity
hereunder. 
 5. Representations of Executive. Executive represents and warrants that he is not under any obligation,
contractual or otherwise, which would prevent his entry into the employ of the Company or his performance of the terms of this Agreement. Executive will not in violation of any agreement binding on Executive bring or use any confidential information
or trade secrets belonging to any other person or entity while employed by the Company under this Agreement. Executive agrees that he will indemnify and hold the Company harmless against loss, damage, liability or expense arising from any claim
based upon circumstances alleged to be inconsistent with such representation and warranty. Further, breach of Executive’s obligations under this paragraph would constitute a material breach of this Agreement justifying the Company’s
termination of Executive’s employment for Cause (as defined in Section 8(a) below). 

  
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 6. Exclusivity of Employment. Executive shall devote his best efforts to the
performance of his employment under this Agreement. During his employment, Executive shall not, at any time or place, either directly or indirectly, engage in any other employment other than on behalf of the Company unless the Board gives him its
prior written permission. While employed under this Agreement, Executive owes the Company a duty of loyalty, and shall diligently perform his duties and shall devote his entire business skill, and sufficient time and effort to his duties hereunder
to contribute to the continued success of the Company; provided, however, that nothing in this Section 6 will prevent Executive from engaging in incidental additional activities in connection with personal investments and interests and
charitable and community affairs that do not interfere with Executive’s duties under this Agreement. The parties hereby acknowledge that Executive intends to serve as a member of a YPO. The parties hereby agree that, during Executive’s
employment hereunder, Executive shall be permitted to serve in this position and to become a member of the board of directors of one private company and an additional charitable organization, to be selected by Executive, but subject to the
Board’s prior approval, or as authorized by the Board or Co-Chairs of the Board. 
 7. Confidentiality, Intellectual
Property and Non-Competition. Concurrently with the execution and delivery of this Agreement, the Company and the Executive are entering into a Confidentiality, Assignment of Inventions and Non-Competition Agreement in the form attached hereto
as Exhibit C. 
 8. Termination of Employment. Either the Company or Executive shall have the right to terminate
Executive’s employment under this Agreement at any time, with or without notice, it being understood that Executive is an at-will employee. Termination of Executive’s employment shall be as follows: 

(a) Termination By the Company For Cause. The Company may terminate the employment of Executive for Cause under
this Agreement at any time and without notice. As used in this Agreement, “Cause” shall include: (i) the failure of such Executive to perform such duties as are reasonably requested by the Board, which requested duties must be
consistent with the duties of an executive at the same level of the Executive; (ii) the failure by Executive to observe the material policies of the Company and its subsidiaries applicable to Executive and communicated to Executive in writing;
(iii) any act or omission constituting gross negligence or willful misconduct of Executive in the performance of his duties; (iv) the breach of any material provision of this Agreement; (v) any act or omission constituting fraud,
embezzlement, disloyalty or dishonesty against the Company or its subsidiaries; or (vi) Executive’s conviction of, or a plea of nolo contendere to, a felony; provided with respect to parts (i), (ii) and (iv) of this
clause, the Board shall provide Executive with notice of such material violation (which notice shall specifically identify the manner and set forth specific facts, circumstances and examples of which the Board believes that the Executive has failed
to perform his duties, violated this Agreement or failed to observe material policies) and Executive shall willfully fail to cure such breach or nonperformance within a reasonable time period established by the Board of not less than thirty
(30) calendar days after Executive’s receipt of such notice, which period shall be sufficient to provide Executive with a reasonable opportunity to cure such defects. 

  
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 Any such termination shall be without prejudice to any other remedy to which the Company may be entitled
either at law, in equity, or under this Agreement. In the event Executive’s employment under this Agreement is terminated for Cause, Executive shall cease to be an employee after the date of termination and shall have no right to receive
compensation or other benefits after the date of termination; provided, however, that nothing in this Agreement is intended to affect any rights that Executive may have as a shareholder of the Company or to which Executive may be entitled under any
employee benefit plan. 
 (b) Termination Without Cause. Either Executive or the Company may terminate the
employment of Executive under this Agreement without Cause at any time, with or without notice. In the event Executive’s employment under this Agreement is terminated without Cause, Executive shall cease to be an employee after the effective
date of the termination and shall have no right to receive compensation or other benefits after the effective date of the termination, except as otherwise provided by Section 8(g) of this Agreement; provided, however, that nothing in this
Agreement is intended to affect any rights that Executive may have as a shareholder of the Company or to which Executive may be entitled under any employee benefit plan. 

(c) Resignation with Good Reason by Executive. Executive shall have the right to resign his employment under this
Agreement with Good Reason. Any of the following acts or omissions shall constitute grounds for Executive to resign his employment pursuant to this Agreement for “Good Reason”: 

 

	 	(i)	The Company materially diminishes Executive’s duties, authority, responsibility or base salary without performance justification; or 

 

	 	(ii)	The Company materially breaches this Agreement; 

  

	 	(iii)	The principal office at which the Executive performs services on behalf of the Company is relocated to a location more than fifty (50) miles from the Relocated HQ;
or 

  

	 	(iv)	 The Company requires Executive to report directly to a person or persons other than the Board or the Chair or Co-Chairs of the Board; provided,
however, that Good Reason shall not exist if the Company changes such reporting relationship as a result of a Change in Control of the Company arising from an acquisition of the Company or Toolrock by an entity with greater than $1,000,000,000 in
annual revenue (on a consolidated basis together with any affiliates, subsidiaries and parent companies excluding the annual revenue of the Company), which acquisition results in (A) the Company being operated as a division or wholly owned
subsidiary of the acquiring entity or its affiliate(s) and (B) the Executive reporting directly to the Chief Executive Officer of the ultimate parent operating company of the acquiring entity; provided that notwithstanding the foregoing Good
Reason shall exist if prior to the date of any such acquisition, the Company has not relocated to the Relocated HQ and the acquiring entity does not 

  
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permit Executive to relocate to the Relocated HQ. “Change of Control” shall mean the consummation of one of the following events: (x) a merger, consolidation or sale of equity
securities of the Company or Toolrock (other than an initial public offering of the equity securities of the Company or Toolrock) other than one which would result in the voting securities of the Company or Toolrock outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or the parent of such corporation) more than 50% of the total voting power represented by the voting securities of
the Company, Toolrock, the other surviving entity, or a parent of any of the foregoing, as applicable, outstanding immediately after such merger, consolidation or sale of equity securities; or (y) the sale or disposition by the Company or
Toolrock of all or substantially all of their respective assets. 

 Executive shall not have the right to resign
Executive’s employment for Good Reason unless: (a) Executive provides the Company with a written objection to the event or condition that is the basis for Executive’s Good Reason termination within thirty (30) days following the
occurrence thereof; (b) the Company does not reverse or otherwise reasonably cure the event or condition within thirty (30) days of receiving such written objection; and (c) Executive resigns his employment within thirty
(30) days following the expiration of such cure period. In the event Executive resigns his employment under this Agreement for Good Reason, Executive shall cease to be an employee after the effective date of the resignation and shall have no
right to receive compensation or other benefits after the effective date of the resignation, except as otherwise provided by Section 8(g) of this Agreement; provided, however, that nothing in this Agreement is intended to affect any rights that
Executive may have as a shareholder of the Company or to which Executive may be entitled under any employee benefit plan. 
 (d) Termination Upon Death. Executive’s employment under this Agreement shall be immediately terminated without notice by the Company upon the death of Executive. In the event Executive’s
employment under this Agreement is terminated because of Executive’s death, no compensation or other benefits will be due after the date of termination, except as otherwise provided by Section 8(g) of this Agreement; provided, however,
that nothing in this Agreement is intended to affect any rights that Executive may have as a shareholder of the Company, to which Executive may be entitled under any employee benefit plan or under applicable workers’ compensation laws.

 (e) Termination Upon Permanent Incapacity. Executive’s employment under this Agreement shall be
immediately terminated without notice by the Company upon Executive becoming Permanently Incapacitated, as defined in Section 4 of this Agreement. In the event Executive’s employment under this Agreement is terminated because of
Executive’s becoming Permanently Incapacitated, no compensation or other benefits will be due after the date of termination, except as otherwise provided by Section 8(g) of this Agreement; provided, however, that nothing in this Agreement
is intended to affect any rights that Executive may have as a shareholder of the Company, to which Executive may be entitled under any employee benefit plan or under applicable workers’ compensation laws. It is the Company’s intent to
comply with 

  
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the Family and Medical Leave Act, the Americans with Disabilities Act and the Pennsylvania Human Relations Act, if applicable, and nothing in this Agreement should be construed to the contrary.

 (f) Effect of Termination. Upon termination of Executive’s employment for any reason, Executive
shall deliver to the Board his resignation from all offices, directorships and positions with the Company and its affiliates, and shall be deemed to have resigned from all offices and fiduciary positions with any employee benefit plans and shall
provide any written confirmation of such resignation(s) as may be required by any such plan. 
 (g) Separation
Benefits. If (i) the Company terminates Executive’s employment under this Agreement without Cause pursuant to Section 8(b) of this Agreement, (ii) the Executive resigns his employment under this Agreement for Good Reason
pursuant to Section 8(c) of this Agreement, or (iii) the Executive’s employment under this Agreement is terminated by reason of Executive’s death or permanent incapacity under Sections 8(d) or (e), respectively, and contingent
upon Executive (or the estate or representative of Executive in the event of death) first signing a separation agreement and general release of all claims against the Company, its affiliates and representatives, in a form prepared by the Company,
the Company shall: (x) pay a cash lump sum payment equal to two times Executive’s Base Salary then in effect at the date of termination or resignation; (y) pay to Executive a cash lump sum payment equal to the bonus under the bonus
plan in effect at the time of Executive’s termination, pro-rated based on Executive’s actual performance through the month of Executive’s termination or resignation; and (z) if Executive elects continued group health insurance
coverage through the Company pursuant to the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), pay the full amount of the premium for Executive’s COBRA coverage for a period of eighteen (18) months from the COBRA coverage
election date (the “COBRA Coverage Period”), unless or until the Board determines, in its discretion, that providing or paying for such benefits results in a violation of 409A of the Internal Revenue Code of 1986, as amended
(“409A”) or an impermissible discrimination under federal or state tax laws, including but not limited to the Employee Retirement Income Security Act, Public Health Services Act, or any other similar law, or would otherwise result in a
penalty or adverse tax consequences to the Company; provided that in the event that the Board determines that providing or paying for such benefits results in a violation of 409A or an impermissible discrimination under federal or state tax laws,
including but not limited to the Employee Retirement Income Security Act, Public Health Services Act, or any other similar law, or would otherwise result in a penalty or adverse tax consequences to the Company, the Company shall pay a cash lump sum
payment equal to the premium for Executive’s COBRA coverage for the remainder of Executive’s COBRA Coverage Period. The form of the separation agreement and general release will be substantially similar to the form attached as Exhibit
D, although the Company reserves the right to seek revisions to such form to the extent necessary under then applicable law to effectuate the intent of a full general release to the greatest extent permitted by law as set forth in the attached
form. The Company will make all payments due under this Section 8(g) within five (5) days after the last to occur of (A) the Executive’s execution of the separation agreement and general release, and (B) the statutory
revocation period set forth in Section 11 of the separation agreement and general release attached as Exhibit D has expired, as the same may be modified as contemplated by this Section 8(g). If such separation agreement and general
release is not executed by Executive and received by the Company within sixty (60) days following the effective date of termination, or if the Executive 

  
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revokes all or any part of such separation agreement and general release, Executive shall forfeit all right to any separation benefits under this Section 8(g). Except as otherwise provided
by this section, Executive shall have no right to receive compensation or other benefits after the effective date of the termination or resignation; provided, however, that nothing in this Agreement is intended to affect any rights that Executive
may have as a shareholder of the Company or to which Executive may be entitled under any employee benefit plan. 

(h) Mitigation of Damages. Executive shall not be required to mitigate the amount of any payment or benefit
provided for under this Agreement by seeking employment or otherwise, nor shall any amounts received or hereby provided from employment or otherwise by Executive affect in any manner the obligations of the Company hereunder. 

9. Withholding Taxes. The Company may withhold from any salary and benefits payable under this Agreement all federal, state, local
or other taxes or amounts as shall be required to be withheld pursuant to any law or governmental regulation or ruling. 
 10.
Section 409A Compliance. To the extent applicable, it is intended that this Agreement and any payment made hereunder shall comply with the requirements of Section 409A or an exemption or exclusion therefrom, and any related
regulations or other guidance promulgated with respect to such Section by the U.S. Department of the Treasury or the Internal Revenue Service, including but not limited to the following. 

(a) For purposes of this Agreement, any references to termination of employment or resignation shall mean a
“separation from service” within the meaning of 409A. 
 (b) Each payment made pursuant to
Section 8(g) of this Agreement shall be deemed to be a separate payment for purposes of 409A. 
 11. General.

 (a) Notices. All notices, requests, consents and other communications hereunder will be in writing,
will be addressed to the receiving party’s address set forth below or to such other address as a party may designate by notice hereunder, and will be either (i) delivered by hand, (ii) sent by overnight courier, or (iii) sent by
registered mail, return receipt requested, postage prepaid. All notices, requests, consents and other communications hereunder will be deemed to have been given either (x) if by hand, at the time of the delivery thereof to the receiving party
at the address of such party set forth above, (y) if sent by overnight courier, on the next business day following the day such notice is delivered to the courier service, or (z) if sent by registered mail, on the fifth business day
following the day such mailing is made. 
  

			
	Latrobe Steel Company:	  	 Latrobe Specialty Steel Company
 2626 Ligonier Street
 Latrobe, PA 15650
 Attention: Secretary of the Board

		
	B. Christopher DiSantis:	  	 B. Christopher DiSantis

8059 Long Forest Drive
 Brecksville, OH
44141

  
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 (b) Entire Agreement. This Agreement, along with any attachments or
Exhibits, embodies the entire agreement and understanding between the Parties with respect to the subject matter hereof and supersedes all prior oral or written agreements and understandings relating to the subject matter hereof. No statement,
representation, warranty, covenant or agreement of any kind not expressly set forth in this Agreement will affect, or be used to interpret, change or restrict, the express terms and provisions of this Agreement. 

(c) Modifications and Amendments. The terms and provisions of this Agreement may be modified or amended only by
written agreement executed by the Parties. 
 (d) Waivers and Consents. The terms and provisions of this
Agreement may be waived, or consent for the departure therefrom granted, only by written document executed by the party entitled to the benefits of such terms or provisions. No such waiver or consent will be deemed to be or will constitute a waiver
or consent with respect to any other terms or provisions of this Agreement, whether or not similar. Each such waiver or consent will be effective only in the specific instance and for the purpose for which it was given, and will not constitute a
continuing waiver or consent. 
 (e) Assignment. The Company may assign its rights and obligations
hereunder to any person or entity that succeeds to all or substantially all of the Company’s business or that aspect of the Company’s business in which Executive is principally involved. Executive may not assign his rights and obligations
under this Agreement without the prior written consent of the Company and any such attempted assignment by Executive without the prior written consent of the Company will be void. 

(f) Benefit. All statements, representations, warranties, covenants and agreements in this Agreement will be
binding on the Parties and will inure to the benefit of the respective successors and permitted assigns of each party hereto. Nothing in this Agreement will be construed to create any rights or obligations except between the Company and Executive,
and no person or entity other than the Company will be regarded as a third-party beneficiary of this Agreement. 

(g) Governing Law. This Agreement and the rights and obligations of the Parties hereunder will be construed in
accordance with and governed by the law of the Commonwealth of Pennsylvania, without giving effect to the conflict of law principles thereof. 
 (h) Jurisdiction, Venue and Service of Process. Any legal action or proceeding with respect to this Agreement will be brought in the courts of Pennsylvania or of the United States of America for
the Western District of Pennsylvania. By execution and delivery of this Agreement, each of the Parties accepts for itself and in respect of its property, generally and unconditionally, the exclusive jurisdiction of the aforesaid courts. 

(i) WAIVER OF JURY TRIAL. ANY ACTION, DEMAND, CLAIM OR COUNTERCLAIM ARISING UNDER OR RELATING TO THIS AGREEMENT
WILL BE RESOLVED BY A JUDGE ALONE AND EACH OF THE COMPANY AND EXECUTIVE WAIVE ANY RIGHT TO A JURY TRIAL THEREOF. 
 (j) Severability. The Parties intend this Agreement to be enforced as written. However, if any portion or provision of this Agreement is to any extent declared illegal or

  
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unenforceable by a duly authorized court having jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which
it is so declared illegal or unenforceable, will not be affected thereby, and each portion and provision of this Agreement will be valid and enforceable to the fullest extent permitted by law. 

(k) Headings and Captions. The headings and captions of the paragraphs and sections of this Agreement are for
convenience of reference only and will in no way modify or affect the meaning or construction of any of the terms or provisions hereof. 
 (l) No Waiver of Rights, Powers and Remedies. No failure or delay by a party hereto in exercising any right, power or remedy under this Agreement, and no course of dealing between the Parties, will
operate as a waiver of any such right, power or remedy of the party. No single or partial exercise of any right, power or remedy under this Agreement by a party hereto, nor any abandonment or discontinuance of steps to enforce any such right, power
or remedy, will preclude such party from any other or further exercise thereof or the exercise of any other right, power or remedy hereunder. The election of any remedy by a party hereto will not constitute a waiver of the right of such party to
pursue other available remedies. 
 (m) Counterparts. This Agreement may be executed in two or more
counterparts, and by different Parties on separate counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. 

(n) Interpretation. This Agreement has been fully and freely negotiated by the Parties, shall be considered as
having been drafted jointly by the Parties, and shall be interpreted and construed as if so drafted, without construction in favor of or against any party on account of its or his participation in the drafting hereof. 

(o) Opportunity to Review. Executive hereby acknowledges that he has had adequate opportunity to review this
Agreement and to reflect upon and consider the terms and conditions of this Agreement, and that Executive has had the opportunity to consult with counsel of his own choosing regarding such terms. Executive further acknowledges that he fully
understands the terms of this Agreement and has voluntarily executed this Agreement. 
 (p) Breach of
Agreement by the Company. The Company agrees that if the approvals and filings contemplated by Section 1(b) of the SPA and Section 1(b) of the Option Agreement are not complete by June 30, 2011, the failure shall be deemed to be a
violation of this Agreement. 
 (q) Attorney’s Fees. The Company agrees to pay for the reasonable
attorney’s fees of Executive in connection with the review, negotiation, execution and delivery of the Agreement, the SPA, the Option Agreement and any agreements related thereto. 

[the remainder of this page has been intentionally left blank] 

  
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 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year set
forth above. 
  

									
			
	/s/ Laura DiSantis	 		 	/s/ B. Christopher DiSantis
	Witness	 		 	B. Christopher DiSantis
			
		 		 	LATROBE STEEL COMPANY d/b/a
		 		 	LATROBE SPECIALTY STEEL COMPANY
			
	/s/ Jane Mikulich	 		 	/s/ Dale B. Mikus
	Witness	 		 	By:	 	Dale B. Mikus
		 		 	Title: 	 	Vice President and Chief Financial Officer

  
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 EXHIBIT A 

STOCK PURCHASE AGREEMENT 

 EXHIBIT B 

OPTION AGREEMENT 

 EXHIBIT C 

CONFIDENTIALITY, ASSIGNMENT OF INVENTIONS 
 AND NON-COMPETITION AGREEMENT 

 EXHIBIT D 

FORM OF 

CONFIDENTIAL EMPLOYMENT SEPARATION AGREEMENT AND RELEASE 
 This Confidential Employment Separation Agreement and Release (“the Agreement”) is entered into between _______________________ (“Executive”), and Latrobe Steel Company, a Pennsylvania
corporation doing business as Latrobe Specialty Steel Company (the “Company”). 
 WHEREAS, Executive was employed by
the Company under the terms of an Employment Agreement dated ____________________, 2011 (the “Employment Agreement”); and 
 WHEREAS, in accordance with its terms, the Employment Agreement has been terminated; and 
 WHEREAS, the Company and Executive are entering into this Agreement to resolve all questions of compensation, entitlement to benefits, and any and all other claims, whether known or unknown, which
Executive may have relating to his employment with, and separation from the employment of, the Company; 
 NOW, THEREFORE, in
consideration of the mutual promises set forth below, and intending to be legally bound, Executive and the Company hereby agree as follows: 
 1. Severance Pay. On and after the Effective Date (as hereinafter defined), the Company will provide the Executive with the separation benefits set forth in Section 8(g) of the Employment
Agreement (consisting of              (the “Separation Benefits”)) in full satisfaction of the Company’s obligations under the Employment Agreement. Executive
understands and agrees that Executive has no right or entitlement to the separation benefits unless Executive signs, and does not revoke, this Agreement. 

 2. Release. Executive hereby releases the Company, its subsidiaries, parents,
predecessors, successors, affiliates, and assigns, and the partners, shareholders, directors, officers, employees, trustees, and agents of the foregoing (hereinafter also referred to collectively as the “Released Parties”), from any and
all rights and claims that arose prior to Executive’s signing of this Agreement and that involve or in any way relate to Executive’s employment with the Company or the termination of such employment, except with respect to rights of
Executive set forth in the Employment Agreement which survive the termination of the Employment Agreement. The rights and claims that Executive hereby releases include, but are not limited to, any and all rights and claims for negligence, emotional
distress, invasion of privacy, defamation, breach of fiduciary duty, wrongful or unjust discharge and breach of contract or promise, express or implied; and any and all claims for violation of Title VII of the Civil Rights Act of 1964, the Equal
Rights Act, the Americans with Disabilities Act, the Age Discrimination in Employment Act, the Genetic Information Nondiscrimination Act, the Family and Medical Leave Act, the Employee Retirement Income Security Act, the Worker Adjustment and
Retraining Notification Act, the Fair Labor Standards Act, the Pennsylvania Wage Payment and Collection Law, the Pennsylvania Minimum Wage Act, the Pennsylvania Human Relations Act, and any other federal, state, or local statute or regulation; and
all rights and claims under any other federal, state or local statute, regulation, or common law theory, except claims that cannot legally be waived. 
 3. Exclusions From Claims Released. This Agreement is not intended to release, and should not be interpreted as releasing, any right or claim that Executive is legally prohibited from releasing.
Notwithstanding anything contained herein to the contrary, this Agreement does not apply to any rights as a shareholder of the Company, any agreement or transaction entered into after the date of this Agreement, any actions or omissions of any
Released Party after the date of 

  
 2 

 
this Agreement, any rights Executive may be entitled to under any employee benefit plan, or any failure by the Company to fulfill its obligations to Employee pursuant to Section 8(g) of the
Employment Agreement. The Company advises Executive to seek independent legal counsel if Executive seeks clarification on the interpretation or scope of this release. 
 4. Covenant Not to Sue. Except as otherwise prohibited by the Age Discrimination in Employment Act or applicable law, Executive agrees never to file a lawsuit, demand, action or claim, and promises
not to otherwise assert any claims that are released in Paragraph 2 of this Agreement. Executive agrees that he will not accept any monetary relief or recovery from any claims that are released in Paragraph 2 of this Agreement. Executive hereby
represents that he has not filed, initiated or caused to be filed any lawsuit, complaint, claim or charge with respect to any claims that are released in Paragraph 2 of this Agreement, nor has any lawsuit, complaint, claim or charge been initiated
or filed on his behalf. This covenant not to sue, however, is not intended to preclude, and should not be interpreted as precluding, Executive from filing a lawsuit to enforce the terms of this Agreement. 

5. Non-Disparagement. Executive agrees that he will not directly or indirectly disparage the Released Parties or their products or
services. The Company agrees that it will not directly or indirectly disparage Executive. 
 6. Involvement in Legal
Proceedings. Executive agrees to cooperate with and assist the Company in its defense or prosecution of claims or charges relating to events, acts, or omissions occurring during Executive’s employment relationship with the Company.
Executive’s agreement to cooperate and assist shall include, but not be limited to, providing truthful information and/or truthful testimony at the Company’s reasonable request. Executive agrees to not voluntarily assist any party opposing
the Company in any present, potential or future legal 

  
 3 

 
proceedings by or against the Company. Executive further agrees to not provide information to a party opposing the Company in any present, potential or future legal proceedings by or against the
Company, except pursuant to and to the extent required by subpoena or order of court. 
 7. Confidentiality. Executive
will keep the details of this Agreement in strict confidence, and will not reveal those details to anyone except members of his immediate family, his attorney, and his financial advisor, except pursuant to subpoena or order of court, or except with
the express prior written consent of the Company’s Board of Directors. 
 8. Advice to Consult with Attorney. The
Company hereby advises Executive that he should consult with an attorney before signing this Agreement. 
 9.
Non-Admission. By offering or entering into this Agreement, the Company in no way admits that it has treated Executive in any way unlawfully, discriminatorily, wrongly or unfairly. 

10. Period to Consider Agreement. Executive hereby acknowledges that he received this Confidential Employment Separation Agreement
and Release on __________________. Executive shall have a period of 21 days after his receipt of this Agreement, within which to review, consider, and sign the Agreement. Any changes discussed or made to this Agreement after it is presented to
Executive for consideration does not restart the 21-day period. The Agreement should be signed and returned to _____________________ at the offices of the Company, __________________________, PA _____, by no later than _______________ or otherwise
this offer shall be null and void. 
 11. Revocation Period and Effective Date. Executive shall have a period of seven
days following his signing of this Agreement, within which to change his mind and revoke this Agreement. If Executive wishes to revoke this Agreement after signing the Agreement, he must 

  
 4 

 
provide written notice of that revocation to ___________________, at the address set forth above, within seven days after signing the Agreement. This Agreement shall become effective and
enforceable after the expiration of seven days after Executive has signed the Agreement, provided that Executive has not revoked the Agreement during that seven-day period. The Effective Date of this Agreement shall be the eighth day after Executive
has signed the Agreement, provided that Executive has not previously revoked the Agreement. 
 12. Knowing and Voluntary
Agreement. Executive hereby represents that he has had an opportunity to review and discuss the terms and meaning of this Agreement with his legal counsel, that he understands the terms and meaning of the Agreement, and that he is entering into
the Agreement freely and voluntarily. 
 13. No Amendment. This Agreement shall be binding upon and inure to the benefit
of each of the Company and Executive and each of their respective agents, assigns, heirs, executors, successors and administrators, and may not be abandoned, supplemented, amended, changed or modified in any manner, orally or otherwise, except by an
instrument in writing of concurrent or subsequent date signed by the parties hereto. 
 14. Severability. If any
provision of this Agreement or any application of this Agreement is held to be invalid by a court of competent jurisdiction, the invalidity of that provision or application shall not affect the validity or enforceability of any other provision or
application of this Agreement. 
 15. Captions. The captions set forth in this Agreement have been included for
convenience only, and are not intended and should not be used as a guide to interpretation of this Agreement. 

  
 5 

 16. Choice of Law. This Agreement shall be governed by, and shall be interpreted in
accordance with, the internal law, and not the law of conflicts, of the Commonwealth of Pennsylvania. 
 17. Assignment.
The Company and Released Parties have the right to assign this Agreement, but Executive does not. This Agreement inures to the benefit of the successors and assigns of the Company, which are intended third party beneficiaries of this Agreement.

 18. Entire Agreement. This Agreement is not intended to supersede and does not supersede any confidentiality,
non-solicitation or non-competition agreement between the Company and Employee. This Agreement otherwise represents the entire agreement between Executive and the Company with respect to the subject matter hereof. The Released Parties have made no
written or oral representations, promises or agreements with Executive other than those contained herein. 
 IN WITNESS WHEREOF,
and intending to be legally bound, the parties have executed this Confidential Employment Separation Agreement and Release on the dates indicated below. 

  
 6Toolrock Holding, Inc. 2006 Employee, Director and Consultant Stock Plan

 Exhibit 10.13 
 TOOLROCK HOLDING, INC. 
 2006 EMPLOYEE, DIRECTOR AND CONSULTANT STOCK
PLAN 
  

	1.	DEFINITIONS. 

Unless otherwise specified or unless the context otherwise requires, the following terms, as used in this Toolrock Holding, Inc.
2006 Employee, Director and Consultant Stock Plan, have the following meanings: 
 Administrator means the Board of
Directors, unless it has delegated power to act on its behalf to the Committee, in which case the Administrator means the Committee. 
 Affiliate means a corporation which, for purposes of Section 424 of the Code, is a parent or subsidiary of the Company, direct or indirect. 

Agreement means an agreement between the Company and a Participant delivered pursuant to the Plan, in such form as the
Administrator shall approve. 
 Board of Directors means the Board of Directors of the Company. 

Code means the United States Internal Revenue Code of 1986, as amended. 

Committee means the committee of the Board of Directors to which the Board of Directors has delegated power to act under or
pursuant to the provisions of the Plan. 
 Common Stock means shares of the Company’s Common Stock, $0.01 par value
per share. 
 Company means Toolrock Holding, Inc., a Delaware corporation. 

Disability or Disabled means permanent and total disability as defined in Section 22(e)(3) of the Code. 

Employee means any employee of the Company or of an Affiliate (including, without limitation, an employee who is also serving as an
officer or director of the Company or of an Affiliate), designated by the Administrator to be eligible to be granted one or more Stock Rights under the Plan. 
 Fair Market Value of a Share of Common Stock means: 
 (1) If the Common
Stock is listed on a national securities exchange or traded in the over-the-counter market and sales prices are regularly reported for the 

 
Common Stock, the closing or last price of the Common Stock on the composite tape or other comparable reporting system on the applicable date or, if such date is not a trading day, the last
trading day immediately prior to such date; 
 (2) If the Common Stock is not traded on a national securities exchange but is
traded on the over-the-counter market, if sales prices are not regularly reported for the Common Stock for the trading day referred to in clause (1), and if bid and asked prices for the Common Stock are regularly reported, the mean between the
bid and the asked price for the Common Stock at the close of trading in the over-the-counter market on the applicable date or, if such date is not a trading day, the last trading day immediately prior to such date; and 

(3) If the Common Stock is neither listed on a national securities exchange nor traded in the over-the-counter market, such value as the
Administrator, in good faith, shall determine. 
 ISO means an option meant to qualify as an incentive stock option under
Section 422 of the Code. 
 Non-Qualified Option means an option which is not intended to qualify as an ISO.

 Option means an ISO or Non-Qualified Option granted under the Plan. 

Participant means an Employee, director or consultant of the Company or an Affiliate to whom one or more Stock Rights are granted
under the Plan. As used herein, “Participant” shall include “Participant’s Survivors” where the context requires. 
 Plan means this Toolrock Holding, Inc. 2006 Employee, Director and Consultant Stock Plan. 
 Shares means shares of the Common Stock as to which Stock Rights have been or may be granted under the Plan or any shares of capital stock into which the Shares are changed or for which they are
exchanged within the provisions of Paragraph 3 of the Plan. The Shares issued under the Plan may be authorized and unissued shares or shares held by the Company in its treasury, or both. 

Stock-Based Award means a grant by the Company under the Plan of an equity award or an equity based award which is not an Option or
a Stock Grant. 
 Stock Grant means a grant by the Company of Shares under the Plan. 

Stock Right means a right to Shares, or the value of Shares, of the Company granted pursuant to the Plan — an ISO, a
Non-Qualified Option, a Stock Grant or a Stock-Based Award. 

  
 2 

 Survivor means a deceased Participant’s legal representatives and/or any person
or persons who acquired the Participant’s rights to a Stock Right by will or by the laws of descent and distribution. 
  

	2.	PURPOSES OF THE PLAN. 

 The Plan is intended to encourage ownership of Shares by Employees and directors of and certain consultants to the Company in order to attract and retain such people, to induce them to work for the
benefit of the Company or of an Affiliate and to provide additional incentive for them to promote the success of the Company or of an Affiliate. The Plan provides for the granting of ISOs, Non-Qualified Options, Stock Grants and Stock-Based Awards.

  

	3.	SHARES SUBJECT TO THE PLAN. 

 a. The number of Shares which may be issued from time to time pursuant to this Plan shall be 1,657,895, or the equivalent of such number of Shares after the Administrator, in its sole discretion, has
interpreted the effect of any stock split, stock dividend, combination, recapitalization or similar transaction in accordance with Paragraph 23 of the Plan. If an Option ceases to be “outstanding”, in whole or in part, or if the Company
shall reacquire any Shares issued pursuant to a Stock Grant, the Shares which were subject to such Option and any Shares so reacquired by the Company shall be available for the granting of other Stock Rights under the Plan. Any Option shall be
treated as “outstanding” until such Option is exercised in full, or terminates or expires under the provisions of the Plan, or by agreement of the parties to the pertinent Option Agreement. 

b. If an Option ceases to be “outstanding”, in whole or in part (other than by exercise), or if the Company shall reacquire (at
not more than its original issuance price) any Shares issued pursuant to a Stock Grant or Stock-Based Award, or if any Stock Right expires or is forfeited, cancelled, or otherwise terminated or results in any Shares not being issued, the unissued
Shares which were subject to such Stock Right shall again be available for issuance from time to time pursuant to this Plan. Notwithstanding the foregoing, if a Stock Right is exercised, in whole or in part, by tender of Shares or if the
Company’s tax withholding obligation is satisfied by withholding Shares, the number of Shares deemed to have been issued under the Plan for purposes of the limitation set forth in Paragraph 3(a) above shall be the number of Shares that were
subject to the Stock Right or portion thereof, and not the net number of Shares actually issued. 
  

	4.	ADMINISTRATION OF THE PLAN. 

 The Administrator of the Plan will be the Board of Directors, except to the extent the Board of Directors delegates its authority to the Committee, in which case the Committee shall be the Administrator.
Subject to the provisions of the Plan, the Administrator is authorized to: 

  
 3 

 a. Interpret the provisions of the Plan or of any Stock Rights and to make all rules and
determinations which it deems necessary or advisable for the administration of the Plan; 
 b. Determine which Employees,
directors and consultants shall be granted Stock Rights; 
 c. Determine the number of Shares for which a Stock Right or Stock
Rights shall be granted; 
 d. Specify the terms and conditions upon which a Stock Right or Stock Rights may be granted; and

 e. Make changes to any outstanding Stock Right, including, without limitation, to reduce or increase the exercise price or
purchase price, accelerate the vesting schedule or extend the expiration date, provided that no such change shall impair the rights of a Participant under any grant previously made without such Participant’s consent; 

f. Buy out for a payment in cash or Shares, a Stock Right previously granted and/or cancel any such Stock Right and grant in substitution
therefor other Stock Rights, covering the same or a different number of Shares and having an exercise price or purchase price per share which may be lower or higher than the exercise price or purchase price of the cancelled Stock Right, based on
such terms and conditions as the Administrator shall establish and the Participant shall accept; and 
 g. Adopt any sub-plans
applicable to residents of any specified jurisdiction as it deems necessary or appropriate in order to comply with or take advantage of any tax or other laws applicable to the Company or to Plan Participants or to otherwise facilitate the
administration of the Plan, which sub-plans may include additional restrictions or conditions applicable to Stock Rights or Shares issued (or issuable) pursuant to a Stock Right. 
 provided, however, that all such interpretations, rules, determinations, terms and conditions shall be made and prescribed in the context of preserving the tax status under Section 422
of the Code of those Options which are designated as ISOs. Subject to the foregoing, the interpretation and construction by the Administrator of any provisions of the Plan or of any Stock Right granted under it shall be final, unless otherwise
determined by the Board of Directors, if the Administrator is the Committee. In addition, if the Administrator is the Committee, the Board of Directors may take any action under the Plan that would otherwise be the responsibility of the Committee.

 To the extent permitted under applicable law, the Board of Directors or the Committee may allocate all or any portion of its
responsibilities and powers to any one or more of its members and may delegate all or any portion of its responsibilities and powers to any other person selected by it. Any such allocation or delegation may be revoked by the Board of Directors or
the Committee at any time. 

  
 4 

	5.	ELIGIBILITY FOR PARTICIPATION. 

 The Administrator will, in its sole discretion, name the Participants in the Plan, provided, however, that each Participant must be an Employee, director or consultant of the Company or of an Affiliate at
the time a Stock Right is granted. Notwithstanding the foregoing, the Administrator may authorize the grant of a Stock Right to a person not then an Employee, director or consultant of the Company or of an Affiliate; provided, however, that the
actual grant of such Stock Right shall be conditioned upon such person becoming eligible to become a Participant at or prior to the time of the execution of the Agreement evidencing such Stock Right. ISOs may be granted only to Employees.
Non-Qualified Options, Stock Grants and Stock-Based Awards may be granted to any Employee, director or consultant of the Company or an Affiliate. The granting of any Stock Right to any individual shall neither entitle that individual to, nor
disqualify him or her from, participation in any other grant of Stock Rights. 
  

	6.	TERMS AND CONDITIONS OF OPTIONS. 

 Each Option shall be set forth in writing in an Option Agreement, duly executed by the Company and, to the extent required by law or requested by the Company, by the Participant. The Administrator may
provide that Options be granted subject to such terms and conditions, consistent with the terms and conditions specifically required under this Plan, as the Administrator may deem appropriate including, without limitation, subsequent approval by the
shareholders of the Company of this Plan or any amendments thereto. The Option Agreements shall be subject to at least the following terms and conditions: 
 a. Non-Qualified Options: Each Option intended to be a Non-Qualified Option shall be subject to the terms and conditions which the Administrator determines to be appropriate and in the best
interest of the Company, subject to the following minimum standards for any such Non-Qualified Option: 
  

	 	i.	Option Price: Each Option Agreement shall state the option price (per share) of the Shares covered by each Option, which option price shall be determined by the
Administrator but shall not be less than the par value per share of Common Stock; 

  

	 	ii.	Number of Shares: Each Option Agreement shall state the number of Shares to which it pertains; 

 

	 	iii.	Option Periods: Each Option Agreement shall state the date or dates on which it first is exercisable and the date after which it may no longer be exercised, and
may provide that the Option rights accrue or become exercisable in installments over a period of months or years, or upon the occurrence of certain conditions or the attainment of stated goals or events; and 

  
 5 

	 	iv.	Option Conditions: Exercise of any Option may be conditioned upon the Participant’s execution of a Share purchase agreement in form satisfactory to the
Administrator providing for certain protections for the Company and its other shareholders, including requirements that: 

  

	 	A.	The Participant’s or the Participant’s Survivors’ right to sell or transfer the Shares may be restricted; and 

 

	 	B.	The Participant or the Participant’s Survivors may be required to execute letters of investment intent and must also acknowledge that the Shares will bear legends
noting any applicable restrictions. 

 b. ISOs: Each Option intended to be an ISO shall be issued only to
an Employee and be subject to the following terms and conditions, with such additional restrictions or changes as the Administrator determines are appropriate but not in conflict with Section 422 of the Code and relevant regulations and rulings
of the Internal Revenue Service: 
  

	 	i.	Minimum standards: The ISO shall meet the minimum standards required of Non-Qualified Options, as described in Paragraph 6(a) above, except clause
(a) thereunder. 

  

	 	ii.	Option Price: Immediately before the ISO is granted, if the Participant owns, directly or by reason of the applicable attribution rules in Section 424(d) of
the Code: 

  

	 	A.	10% or less of the total combined voting power of all classes of stock of the Company or an Affiliate, the Option price per share of the Shares covered by each
ISO shall not be less than 100% of the Fair Market Value per share of the Shares on the date of the grant of the Option; or 

  

	 	B.	More than 10% of the total combined voting power of all classes of stock of the Company or an Affiliate, the Option price per share of the Shares covered by each ISO
shall not be less than 110% of the said Fair Market Value on the date of grant. 

  

	 	iii.	Term of Option: For Participants who own: 

  

	 	A.	10% or less of the total combined voting power of all classes of stock of the Company or an Affiliate, each ISO shall terminate not more than ten years from the
date of the grant or at such earlier time as the Option Agreement may provide; or 

  

	 	B.	 More than 10% of the total combined voting power of all classes of stock of the Company or an Affiliate, each ISO shall terminate not

  
 6 

	 	 
more than five years from the date of the grant or at such earlier time as the Option Agreement may provide. 

 

	 	iv.	Limitation on Yearly Exercise: The Option Agreements shall restrict the amount of ISOs which may become exercisable in any calendar year (under this or any other
ISO plan of the Company or an Affiliate) so that the aggregate Fair Market Value (determined at the time each ISO is granted) of the stock with respect to which ISOs are exercisable for the first time by the Participant in any calendar year does not
exceed $100,000. 

  

	7.	TERMS AND CONDITIONS OF STOCK GRANTS AND STOCK-BASED AWARDS. 

 a. Each offer of a Stock Grant to a Participant shall state the date prior to which the Stock Grant must be accepted by the Participant, and the principal terms of each Stock Grant shall be set forth in
an Agreement, duly executed by the Company and, to the extent required by law or requested by the Company, by the Participant. Such Agreement shall be in a form approved by the Administrator and shall contain terms and conditions which the
Administrator determines to be appropriate and in the best interest of the Company, subject to the following minimum standards: 
  

	 	i.	Such Agreement shall state the purchase price (per share), if any, of the Shares covered by each Stock Grant, which purchase price shall be determined by the
Administrator but shall not be less than the minimum consideration required by the Delaware General Corporation Law on the date of the grant of the Stock Grant; 

 

	 	ii.	Such Agreement shall state the number of Shares to which the Stock Grant pertains; and 

 

	 	iii.	Such Agreement shall include the terms of any right of the Company to restrict or reacquire the Shares subject to the Stock Grant, including the time and events upon
which such reacquisition rights shall accrue and the purchase price therefor, if any. 

 b. The Administrator
shall have the right to grant Stock-Based Awards based upon the Common Stock having such terms and conditions as the Board may determine, including, without limitation, the grant of Shares based upon certain conditions, the grant of securities
convertible into Shares and the grant of stock appreciation rights, phantom stock awards or stock units. The principal terms of each Stock-Based Award shall be set forth in an Agreement, duly executed by the Company and, to the extent required by
law or requested by the Company, by the Participant. Such Agreement shall be in a form approved by the Administrator and shall contain terms and conditions which the Administrator determines to be appropriate and in the best interest of the Company.

  
 7 

	8.	EXERCISE OF OPTIONS AND ISSUE OF SHARES. 

 An Option (or any part or installment thereof) shall be exercised by giving written notice to the Company or its designee, together with provision for payment of the full purchase price in accordance with
this Paragraph for the Shares as to which the Option is being exercised, and upon compliance with any other condition(s) set forth in the Option Agreement. Such notice shall be signed by the person exercising the Option, shall state the number of
Shares with respect to which the Option is being exercised and shall contain any representation required by the Plan or the Option Agreement. Payment of the purchase price for the Shares as to which such Option is being exercised shall be made
(a) in United States dollars in cash or by check, or (b) at the discretion of the Administrator, through delivery of shares of Common Stock having a Fair Market Value equal as of the date of the exercise to the cash exercise price of the
Option and held for at least six months, or (c) at the discretion of the Administrator, by having the Company retain from the Shares otherwise issuable upon exercise of the Option, a number of Shares having a Fair Market Value equal as of the
date of exercise to the exercise price of the Option, or (d) at the discretion of the Administrator, by delivery of the grantee’s personal recourse note bearing interest payable not less than annually at no less than 100% of the applicable
Federal rate, as defined in Section 1274(d) of the Code, or (e) at the discretion of the Administrator, in accordance with a cashless exercise program established with a securities brokerage firm, and approved by the Administrator, or
(f) at the discretion of the Administrator, by any combination of (a), (b), (c), (d) and (e) above or (g) at the discretion of the Administrator, payment of such other lawful consideration as the Administrator may determine.
Notwithstanding the foregoing, the Administrator shall accept only such payment on exercise of an ISO as is permitted by Section 422 of the Code. 
 The Company shall then reasonably promptly deliver the Shares as to which such Option was exercised to the Participant (or to the Participant’s Survivors, as the case may be). In determining what
constitutes “reasonably promptly,” it is expressly understood that the issuance and delivery of the Shares may be delayed by the Company in order to comply with any law or regulation (including, without limitation, state securities or
“blue sky” laws) which requires the Company to take any action with respect to the Shares prior to their issuance. The Shares shall, upon delivery, be fully paid, non-assessable Shares. 

The Administrator shall have the right to accelerate the date of exercise of any installment of any Option; provided that the
Administrator shall not accelerate the exercise date of any installment of any Option granted to an Employee as an ISO (and not previously converted into a Non-Qualified Option pursuant to Paragraph 26) if such acceleration would violate the annual
vesting limitation contained in Section 422(d) of the Code, as described in Paragraph 6(b)(iv). 
 The Administrator may,
in its discretion, amend any term or condition of an outstanding Option provided (i) such term or condition as amended is permitted by the Plan, (ii) any such amendment shall be made only with the consent of the Participant to whom the
Option was granted, or in the event of the death of the Participant, the Participant’s Survivors, if the amendment is adverse to the Participant, and (iii) any such amendment of any Option shall be

  
 8 

 
made only after the Administrator determines whether such amendment would constitute a “modification” of any Option which is an ISO (as that term is defined in Section 424(h) of
the Code) or would cause any adverse tax consequences for the holder of such Option including, but not limited to, pursuant to Section 409A of the Code. 
  

	9.	ACCEPTANCE OF STOCK GRANT AND ISSUE OF SHARES. 

 A Stock Grant or Stock-Based Award (or any part or installment thereof) shall be accepted by executing the applicable Agreement and delivering it to the Company or its designee, together with provision
for payment of the full purchase price, if any, in accordance with this Paragraph for the Shares as to which such Stock Grant or Stock-Based Award is being accepted, and upon compliance with any other conditions set forth in the applicable
Agreement. Payment of the purchase price for the Shares as to which such Stock Grant or Stock-Based Award is being accepted shall be made (a) in United States dollars in cash or by check, or (b) at the discretion of the Administrator,
through delivery of shares of Common Stock held for at least six months and having a Fair Market Value equal as of the date of acceptance of the Stock Grant or Stock Based-Award to the purchase price of the Stock Grant or Stock-Based Award, or
(c) at the discretion of the Administrator, by delivery of the grantee’s personal recourse note bearing interest payable not less than annually at no less than 100% of the applicable Federal rate, as defined in Section 1274(d) of the
Code, or (d) at the discretion of the Administrator, by any combination of (a), (b) and (c) above; or (e) at the discretion of the Administrator, payment of such other lawful consideration as the Administrator may determine.

 The Company shall then, if required by the applicable Agreement, reasonably promptly deliver the Shares as to which such
Stock Grant or Stock-Based Award was accepted to the Participant (or to the Participant’s Survivors, as the case may be), subject to any escrow provision set forth in the applicable Agreement. In determining what constitutes “reasonably
promptly,” it is expressly understood that the issuance and delivery of the Shares may be delayed by the Company in order to comply with any law or regulation (including, without limitation, state securities or “blue sky” laws) which
requires the Company to take any action with respect to the Shares prior to their issuance. 
 The Administrator may, in its
discretion, amend any term or condition of an outstanding Stock Grant, Stock-Based Award or applicable Agreement provided (i) such term or condition as amended is permitted by the Plan, and (ii) any such amendment shall be made only with
the consent of the Participant to whom the Stock Grant or Stock-Based Award was made, if the amendment is adverse to the Participant. 
  

	10.	RIGHTS AS A SHAREHOLDER. 

 No Participant to whom a Stock Right has been granted shall have rights as a shareholder with respect to any Shares covered by such Stock Right, except after due exercise of the Option or acceptance of
the Stock Grant or as set forth in the applicable Agreement, and tender of the full purchase price, if any, for the Shares being purchased pursuant to such exercise or 

  
 9 

 
acceptance and registration of the Shares in the Company’s share register in the name of the Participant. 
  

	11.	ASSIGNABILITY AND TRANSFERABILITY OF STOCK RIGHTS. 

 By its terms, a Stock Right granted to a Participant shall not be transferable by the Participant other than (i) by will or by the laws of descent and distribution, or (ii) as approved by the
Administrator in its discretion and set forth in the applicable Agreement. Notwithstanding the foregoing, an ISO transferred except in compliance with clause (i) above shall no longer qualify as an ISO. The designation of a beneficiary of a
Stock Right by a Participant, with the prior approval of the Administrator and in such form as the Administrator shall prescribe, shall not be deemed a transfer prohibited by this Paragraph. Except as provided above, a Stock Right shall only be
exercisable or may only be accepted, during the Participant’s lifetime, by such Participant (or by his or her legal representative) and shall not be assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) and
shall not be subject to execution, attachment or similar process. Any attempted transfer, assignment, pledge, hypothecation or other disposition of any Stock Right or of any rights granted thereunder contrary to the provisions of this Plan, or the
levy of any attachment or similar process upon a Stock Right, shall be null and void. 
  

	12.	EFFECT ON OPTIONS OF TERMINATION OF SERVICE OTHER THAN “FOR CAUSE” OR DEATH OR DISABILITY. 

Except as otherwise provided in a Participant’s Option Agreement, in the event of a termination of service (whether as an employee,
director or consultant) with the Company or an Affiliate before the Participant has exercised an Option, the following rules apply: 
 a. A Participant who ceases to be an employee, director or consultant of the Company or of an Affiliate (for any reason other than termination “for cause”, Disability, or death for which events
there are special rules in Paragraphs 13, 14, and 15, respectively), may exercise any Option granted to him or her to the extent that the Option is exercisable on the date of such termination of service, but only within such term as the
Administrator has designated in a Participant’s Option Agreement. 
 b. Except as provided in Subparagraph (c) below,
or Paragraph 14 or 15, in no event may an Option intended to be an ISO, be exercised later than three months after the Participant’s termination of employment. 
 c. The provisions of this Paragraph, and not the provisions of Paragraph 14 or 15, shall apply to a Participant who subsequently becomes Disabled or dies after the termination of employment, director
status or consultancy, provided, however, in the case of a Participant’s Disability or death within three months after the termination of employment, director status or consultancy, the Participant or the Participant’s Survivors may
exercise the Option within one 

  
 10 

 
year after the date of the Participant’s termination of service, but in no event after the date of expiration of the term of the Option. 

d. Notwithstanding anything herein to the contrary, if subsequent to a Participant’s termination of employment, termination of
director status or termination of consultancy, but prior to the exercise of an Option, the Board of Directors determines that, either prior or subsequent to the Participant’s termination, the Participant engaged in conduct which would
constitute “cause”, then such Participant shall forthwith cease to have any right to exercise any Option. 
 e. A
Participant to whom an Option has been granted under the Plan who is absent from the Company or an Affiliate because of temporary disability (any disability other than a Disability as defined in Paragraph 1 hereof), or who is on leave of absence for
any purpose, shall not, during the period of any such absence, be deemed, by virtue of such absence alone, to have terminated such Participant’s employment, director status or consultancy with the Company or with an Affiliate, except as the
Administrator may otherwise expressly provide. 
 f. Except as required by law or as set forth in a Participant’s Option
Agreement, Options granted under the Plan shall not be affected by any change of a Participant’s status within or among the Company and any Affiliates, so long as the Participant continues to be an employee, director or consultant of the
Company or any Affiliate. 
  

	13.	EFFECT ON OPTIONS OF TERMINATION OF SERVICE “FOR CAUSE”. 

 Except as otherwise provided in a Participant’s Option Agreement, the following rules apply if the Participant’s service (whether as an employee, director or consultant) with the Company or an
Affiliate is terminated “for cause” prior to the time that all his or her outstanding Options have been exercised: 

a. All outstanding and unexercised Options as of the time the Participant is notified his or her service is terminated “for
cause” will immediately be forfeited. 
 b. For purposes of this Plan, “cause” shall include (and is not limited
to) dishonesty with respect to the Company or any Affiliate, insubordination, substantial malfeasance or non-feasance of duty, unauthorized disclosure of confidential information, breach by the Participant of any provision of any employment,
consulting, advisory, nondisclosure, non-competition or similar agreement between the Participant and the Company, and conduct substantially prejudicial to the business of the Company or any Affiliate. The determination of the Administrator as to
the existence of “cause” will be conclusive on the Participant and the Company. 
 c. “Cause” is not limited
to events which have occurred prior to a Participant’s termination of service, nor is it necessary that the Administrator’s finding of “cause” occur prior to termination. If the Administrator determines, subsequent to a
Participant’s termination of service but prior to the exercise of an Option, that either prior or subsequent to the Participant’s 

  
 11 

 
termination the Participant engaged in conduct which would constitute “cause”, then the right to exercise any Option is forfeited. 

d. Any provision in an agreement between the Participant and the Company or an Affiliate, which contains a conflicting definition of
“cause” for termination and which is in effect at the time of such termination, shall supersede the definition in this Plan with respect to that Participant. 
  

	14.	EFFECT ON OPTIONS OF TERMINATION OF SERVICE FOR DISABILITY. 

 Except as otherwise provided in a Participant’s Option Agreement: 
 a. A
Participant who ceases to be an employee, director or consultant of the Company or of an Affiliate by reason of Disability may exercise any Option granted to such Participant: 

 

	 	i.	To the extent that the Option has become exercisable but has not been exercised on the date of Disability; and 

 

	 	ii.	In the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion through the date of Disability of any additional vesting rights that
would have accrued on the next vesting date had the Participant not become Disabled. The proration shall be based upon the number of days accrued in the current vesting period prior to the date of Disability. 

b. A Disabled Participant may exercise such rights only within the period ending one year after the date of the Participant’s
Disability, notwithstanding that the Participant might have been able to exercise the Option as to some or all of the Shares on a later date if the Participant had not become Disabled and had continued to be an employee, director or consultant or,
if earlier, within the originally prescribed term of the Option. 
 c. The Administrator shall make the determination both of
whether Disability has occurred and the date of its occurrence (unless a procedure for such determination is set forth in another agreement between the Company and such Participant, in which case such procedure shall be used for such determination).
If requested, the Participant shall be examined by a physician selected or approved by the Administrator, the cost of which examination shall be paid for by the Company. 

 

	15.	EFFECT ON OPTIONS OF DEATH WHILE AN EMPLOYEE, DIRECTOR OR CONSULTANT. 

Except as otherwise provided in a Participant’s Option Agreement: 

  
 12 

 a. In the event of the death of a Participant while the Participant is an employee, director
or consultant of the Company or of an Affiliate, such Option may be exercised by the Participant’s Survivors: 
  

	 	i.	To the extent that the Option has become exercisable but has not been exercised on the date of death; and 

 

	 	ii.	In the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion through the date of death of any additional vesting rights that
would have accrued on the next vesting date had the Participant not died. The proration shall be based upon the number of days accrued in the current vesting period prior to the Participant’s date of death. 

b. If the Participant’s Survivors wish to exercise the Option, they must take all necessary steps to exercise the Option within one
year after the date of death of such Participant, notwithstanding that the decedent might have been able to exercise the Option as to some or all of the Shares on a later date if he or she had not died and had continued to be an employee, director
or consultant or, if earlier, within the originally prescribed term of the Option. 
  

	16.	EFFECT OF TERMINATION OF SERVICE ON STOCK GRANTS. 

 In the event of a termination of service (whether as an employee, director or consultant) with the Company or an Affiliate for any reason before the Participant has accepted a Stock Grant, such offer
shall terminate. 
 For purposes of this Paragraph 16 and Paragraph 17 below, a Participant to whom a Stock Grant has been
offered and accepted under the Plan who is absent from the Company or an Affiliate because of temporary disability (any disability other than a Disability as defined in Paragraph 1 hereof), or who is on leave of absence for any purpose, shall not,
during the period of any such absence, be deemed, by virtue of such absence alone, to have terminated such Participant’s employment, director status or consultancy with the Company or with an Affiliate, except as the Administrator may otherwise
expressly provide. 
 In addition, for purposes of this Paragraph 16 and Paragraph 17 below, any change of employment or other
service within or among the Company and any Affiliates shall not be treated as a termination of employment, director status or consultancy so long as the Participant continues to be an employee, director or consultant of the Company or any
Affiliate. 
  

	17.	EFFECT ON STOCK GRANTS OF TERMINATION OF SERVICE OTHER THAN “FOR CAUSE” OR DEATH OR DISABILITY. 

Except as otherwise provided in a Participant’s Stock Grant Agreement, in the event of a termination of service (whether as an
employee, director or consultant), other than termination “for cause,” Disability, or death for which events there are special rules in Paragraphs 18, 19, and 

  
 13 

 
20, respectively, before all Company rights of repurchase shall have lapsed, then the Company shall have the right to repurchase that number of Shares subject to a Stock Grant as to which the
Company’s repurchase rights have not lapsed. 
  

	18.	EFFECT ON STOCK GRANTS OF TERMINATION OF SERVICE “FOR CAUSE”. 

Except as otherwise provided in a Participant’s Stock Grant Agreement, the following rules apply if the Participant’s service
(whether as an employee, director or consultant) with the Company or an Affiliate is terminated “for cause”: 
 a. All
Shares subject to any Stock Grant shall be immediately subject to repurchase by the Company at the original purchase price, if any, thereof. 
 b. For purposes of this Plan, “cause” shall include (and is not limited to) dishonesty with respect to the employer, insubordination, substantial malfeasance or non-feasance of duty,
unauthorized disclosure of confidential information, breach by the Participant of any provision of any employment, consulting, advisory, nondisclosure, non-competition or similar agreement between the Participant and the Company, and conduct
substantially prejudicial to the business of the Company or any Affiliate. The determination of the Administrator as to the existence of “cause” will be conclusive on the Participant and the Company. 

c. “Cause” is not limited to events which have occurred prior to a Participant’s termination of service, nor is it
necessary that the Administrator’s finding of “cause” occur prior to termination. If the Administrator determines, subsequent to a Participant’s termination of service, that either prior or subsequent to the Participant’s
termination the Participant engaged in conduct which would constitute “cause,” then the Company’s right to repurchase all of such Participant’s Shares shall apply. 

d. Any provision in an agreement between the Participant and the Company or an Affiliate, which contains a conflicting definition of
“cause” for termination and which is in effect at the time of such termination, shall supersede the definition in this Plan with respect to that Participant. 
  

	19.	EFFECT ON STOCK GRANTS OF TERMINATION OF SERVICE FOR DISABILITY. 

 Except as otherwise provided in a Participant’s Stock Grant Agreement, the following rules apply if a Participant ceases to be an employee, director or consultant of the Company or of an Affiliate by
reason of Disability: to the extent the forfeiture provisions or the Company’s rights of repurchase have not lapsed on the date of Disability, they shall be exercisable; provided, however, that in the event such forfeiture provisions or rights
of repurchase lapse periodically, such provisions or rights shall lapse to the extent of a pro rata portion of the Shares subject to 

  
 14 

 
such Stock Grant through the date of Disability as would have lapsed had the Participant not become Disabled. The proration shall be based upon the number of days accrued prior to the date of
Disability. 
 The Administrator shall make the determination both of whether Disability has occurred and the date of its
occurrence (unless a procedure for such determination is set forth in another agreement between the Company and such Participant, in which case such procedure shall be used for such determination). If requested, the Participant shall be examined by
a physician selected or approved by the Administrator, the cost of which examination shall be paid for by the Company. 
  

	20.	EFFECT ON STOCK GRANTS OF DEATH WHILE AN EMPLOYEE, DIRECTOR OR CONSULTANT. 

Except as otherwise provided in a Participant’s Stock Grant Agreement, the following rules apply in the event of the death of a
Participant while the Participant is an employee, director or consultant of the Company or of an Affiliate: to the extent the forfeiture provisions or the Company’s rights of repurchase have not lapsed on the date of death, they shall be
exercisable; provided, however, that in the event such forfeiture provisions or rights of repurchase lapse periodically, such provisions or rights shall lapse to the extent of a pro rata portion of the Shares subject to such Stock Grant through the
date of death as would have lapsed had the Participant not died. The proration shall be based upon the number of days accrued prior to the Participant’s death. 
  

	21.	PURCHASE FOR INVESTMENT. 

 Unless the offering and sale of the Shares to be issued upon the particular exercise or acceptance of a Stock Right shall have been effectively registered under the Securities Act of 1933, as now in force
or hereafter amended (the “1933 Act”), the Company shall be under no obligation to issue the Shares covered by such exercise unless and until the following conditions have been fulfilled: 

a. The person(s) who exercise(s) or accept(s) such Stock Right shall warrant to the Company, prior to the receipt of such Shares, that
such person(s) are acquiring such Shares for their own respective accounts, for investment, and not with a view to, or for sale in connection with, the distribution of any such Shares, in which event the person(s) acquiring such Shares shall be
bound by the provisions of the following legend which shall be endorsed upon the certificate(s) evidencing their Shares issued pursuant to such exercise or such grant: 
 “The shares represented by this certificate have been taken for investment and they may not be sold or otherwise transferred by any person, including a pledgee, unless (1) either (a) a
Registration Statement with respect to such shares shall be effective under the Securities Act of 1933, as amended, or (b) the Company shall have received an opinion of counsel satisfactory to it that an exemption from

  
 15 

 
registration under such Act is then available, and (2) there shall have been compliance with all applicable state securities laws.” 

b. At the discretion of the Administrator, the Company shall have received an opinion of its counsel that the Shares may be issued upon
such particular exercise or acceptance in compliance with the 1933 Act without registration thereunder. 
  

	22.	DISSOLUTION OR LIQUIDATION OF THE COMPANY. 

 Upon the dissolution or liquidation of the Company, all Options granted under this Plan which as of such date shall not have been exercised and all Stock Grants and Stock-Based Awards which have not been
accepted will terminate and become null and void; provided, however, that if the rights of a Participant or a Participant’s Survivors have not otherwise terminated and expired, the Participant or the Participant’s Survivors will have the
right immediately prior to such dissolution or liquidation to exercise or accept any Stock Right to the extent that the Stock Right is exercisable or subject to acceptance as of the date immediately prior to such dissolution or liquidation. Upon the
dissolution or liquidation of the Company, any outstanding Stock-Based Awards shall immediately terminate unless otherwise determined by the Administrator or specifically provided in the applicable Agreement. 

 

	23.	ADJUSTMENTS. 

 Upon
the occurrence of any of the following events, a Participant’s rights with respect to any Stock Right granted to him or her hereunder shall be adjusted as hereinafter provided, unless otherwise specifically provided in a Participant’s
Agreement: 
 a. Stock Dividends and Stock Splits. If (i) the shares of Common Stock shall be subdivided or combined
into a greater or smaller number of shares or if the Company shall issue any shares of Common Stock as a stock dividend on its outstanding Common Stock, or (ii) additional shares or new or different shares or other securities of the Company or
other non-cash assets are distributed with respect to such shares of Common Stock, the number of shares of Common Stock deliverable upon the exercise of an Option or acceptance of a Stock Grant shall be appropriately increased or decreased
proportionately, and appropriate adjustments shall be made including, in the purchase price per share, to reflect such events. The number of Shares subject to the limitations in Paragraph 3 and 4 shall also be proportionately adjusted upon the
occurrence of such events. 
 b. Corporate Transactions. If the Company is to be consolidated with or acquired by another
entity in a merger, sale of all or substantially all of the Company’s assets other than a transaction to merely change the state of incorporation (a “Corporate Transaction”), the Administrator or the board of directors of any entity
assuming the obligations of the Company hereunder (the “Successor Board”), shall, as to outstanding Options, either (i) make appropriate provision for the continuation of such Options by substituting on an equitable basis for the
Shares then subject to such Options either the consideration payable with respect to the 

  
 16 

 
outstanding shares of Common Stock in connection with the Corporate Transaction or securities of any successor or acquiring entity; or (ii) upon written notice to the Participants, provide
that all Options must be exercised (either to the extent then exercisable or, at the discretion of the Administrator, all Options being made fully exercisable for purposes of this Subparagraph), within a specified number of days of the date of such
notice, at the end of which period the Options shall terminate; or (iii) terminate all Options in exchange for a cash payment equal to the excess of the Fair Market Value of the Shares subject to such Options (either to the extent then
exercisable or, at the discretion of the Administrator, all Options being made fully exercisable for purposes of this Subparagraph) over the exercise price thereof. 
 With respect to outstanding Stock Grants, the Administrator or the Successor Board, shall either (i) make appropriate provisions for the continuation of such Stock Grants on the same terms and
conditions by substituting on an equitable basis for the Shares then subject to such Stock Grants either the consideration payable with respect to the outstanding Shares of Common Stock in connection with the Corporate Transaction or securities of
any successor or acquiring entity; or (ii) terminate all Stock Grants in exchange for a cash payment equal to the excess of the Fair Market Value of the Shares subject to such Stock Grants over the purchase price thereof, if any. In addition,
in the event of a Corporate Transaction, the Administrator may waive any or all Company forfeiture or repurchase rights with respect to outstanding Stock Grants. 
 c. Recapitalization or Reorganization. In the event of a recapitalization or reorganization of the Company other than a Corporate Transaction pursuant to which securities of the Company or of
another corporation are issued with respect to the outstanding shares of Common Stock, a Participant upon exercising an Option or accepting a Stock Grant after the recapitalization or reorganization shall be entitled to receive for the purchase
price paid upon such exercise or acceptance the number of replacement securities which would have been received if such Option had been exercised or Stock Grant accepted prior to such recapitalization or reorganization. 

d. Adjustments to Stock-Based Awards. Upon the happening of any of the events described in Subparagraphs a, b or c above, any
outstanding Stock-Based Award shall be appropriately adjusted to reflect the events described in such Subparagraphs. The Administrator shall determine the specific adjustments to be made under this Paragraph 23 and, subject to Paragraph 4, its
determination shall be conclusive. 
 e. Modification of ISOs. Notwithstanding the foregoing, any adjustments made
pursuant to Subparagraph a, b or c above with respect to ISOs shall be made only after the Administrator determines whether such adjustments would constitute a “modification” of such ISOs (as that term is defined in Section 424(h) of
the Code) or would cause any adverse tax consequences for the holders of such ISOs. If the Administrator determines that such adjustments made with respect to ISOs would constitute a modification of such ISOs, it may refrain from making such
adjustments, unless the holder of an ISO specifically requests in writing that such adjustment be made and such writing indicates that the holder has full knowledge of the consequences of such “modification” on his or her income tax
treatment with respect to the ISO. 

  
 17 

	24.	ISSUANCES OF SECURITIES. 

 Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason
thereof shall be made with respect to, the number or price of shares subject to Stock Rights. Except as expressly provided herein, no adjustments shall be made for dividends paid in cash or in property (including without limitation, securities) of
the Company prior to any issuance of Shares pursuant to a Stock Right. 
  

	25.	FRACTIONAL SHARES. 

No fractional shares shall be issued under the Plan and the person exercising a Stock Right shall receive from the Company cash in lieu of
such fractional shares equal to the Fair Market Value thereof. 
  

	26.	CONVERSION OF ISOs INTO NON-QUALIFIED OPTIONS; TERMINATION OF ISOs. 

 The Administrator, at the written request of any Participant, may in its discretion take such actions as may be necessary to convert such Participant’s ISOs (or any portions thereof) that have not
been exercised on the date of conversion into Non-Qualified Options at any time prior to the expiration of such ISOs, regardless of whether the Participant is an employee of the Company or an Affiliate at the time of such conversion. At the time of
such conversion, the Administrator (with the consent of the Participant) may impose such conditions on the exercise of the resulting Non-Qualified Options as the Administrator in its discretion may determine, provided that such conditions shall not
be inconsistent with this Plan. Nothing in the Plan shall be deemed to give any Participant the right to have such Participant’s ISOs converted into Non-Qualified Options, and no such conversion shall occur until and unless the Administrator
takes appropriate action. The Administrator, with the consent of the Participant, may also terminate any portion of any ISO that has not been exercised at the time of such conversion. 

 

	27.	WITHHOLDING. 

 In
the event that any federal, state, or local income taxes, employment taxes, Federal Insurance Contributions Act (“F.I.C.A.”) withholdings or other amounts are required by applicable law or governmental regulation to be withheld from the
Participant’s salary, wages or other remuneration in connection with the exercise or acceptance of a Stock Right, in connection with a Disqualifying Disposition (as defined in Paragraph 28), upon the lapsing of any forfeiture provision or right
of repurchase, or for any other reason as required by applicable law, the Company may withhold from the Participant’s compensation, if any, or may require that the Participant advance in cash to the Company, or to any Affiliate of the Company
which employs or employed the Participant, the statutory minimum amount of such withholdings unless a 

  
 18 

 
different withholding arrangement, including the use of shares of the Company’s Common Stock or a promissory note, is authorized by the Administrator (and permitted by law). For purposes
hereof, the fair market value of the shares withheld for purposes of payroll withholding shall be determined in the manner provided in Paragraph 1 above, as of the most recent practicable date prior to the date of exercise. If the fair market value
of the shares withheld is less than the amount of payroll withholdings required, the Participant may be required to advance the difference in cash to the Company or the Affiliate employer. The Administrator in its discretion may condition the
exercise of an Option for less than the then Fair Market Value on the Participant’s payment of such additional withholding. 
  

	28.	NOTICE TO COMPANY OF DISQUALIFYING DISPOSITION. 

 Each Employee who receives an ISO must agree to notify the Company in writing immediately after the Employee makes a Disqualifying Disposition of any shares acquired pursuant to the exercise of an ISO. A
Disqualifying Disposition is defined in Section 424(c) of the Code and includes any disposition (including any sale or gift) of such shares before the later of (a) two years after the date the Employee was granted the ISO, or (b) one
year after the date the Employee acquired Shares by exercising the ISO, except as otherwise provided in Section 424(c) of the Code. If the Employee has died before such stock is sold, these holding period requirements do not apply and no
Disqualifying Disposition can occur thereafter. 
  

	29.	TERMINATION OF THE PLAN. 

 The Plan will terminate on December 7, 2016, the date which is ten years from the earlier of the date of its adoption by the Board of Directors and the date of its approval by the
shareholders. The Plan may be terminated at an earlier date by vote of the shareholders or the Board of Directors of the Company; provided, however, that any such earlier termination shall not affect any Agreements executed prior to the effective
date of such termination. 
  

	30.	AMENDMENT OF THE PLAN AND AGREEMENTS. 

 The Plan may be amended by the shareholders of the Company. The Plan may also be amended by the Administrator, including, without limitation, to the extent necessary to qualify any or all outstanding
Stock Rights granted under the Plan or Stock Rights to be granted under the Plan for favorable federal income tax treatment (including deferral of taxation upon exercise) as may be afforded incentive stock options under Section 422 of the Code,
and to the extent necessary to qualify the shares issuable upon exercise or acceptance of any outstanding Stock Rights granted, or Stock Rights to be granted, under the Plan for listing on any national securities exchange or quotation in any
national automated quotation system of securities dealers. Any amendment approved by the Administrator which the Administrator determines is of a scope that requires shareholder approval shall be subject to obtaining such shareholder approval. Any
modification or amendment of the Plan shall not, without the consent of a Participant, adversely affect his or her rights under a Stock Right previously granted to him or her. With the consent of

  
 19 

 
the Participant affected, the Administrator may amend outstanding Agreements in a manner which may be adverse to the Participant but which is not inconsistent with the Plan. In the discretion of
the Administrator, outstanding Agreements may be amended by the Administrator in a manner which is not adverse to the Participant. 
  

	31.	EMPLOYMENT OR OTHER RELATIONSHIP. 

 Nothing in this Plan or any Agreement shall be deemed to prevent the Company or an Affiliate from terminating the employment, consultancy or director status of a Participant, nor to prevent a Participant
from terminating his or her own employment, consultancy or director status or to give any Participant a right to be retained in employment or other service by the Company or any Affiliate for any period of time. 

 

	32.	GOVERNING LAW. 

This Plan shall be construed and enforced in accordance with the law of the State of Delaware. 

Adopted by the Board of Directors on December 7, 2006. 
 Adopted by the stockholders on December 7, 2006. 

  
 20

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