Document:

REGISTRANT'S 2008 OMNIBUS INCENTIVE PLAN

 Exhibit 10.1 
  
  
 EDGEWATER TECHNOLOGY, INC. 
 2008 OMNIBUS INCENTIVE PLAN 
  
  

 TABLE OF CONTENTS 
  

			
	  	  	Page
	 1. PURPOSE
	  	1
	 2. DEFINITIONS
	  	1
	 3. ADMINISTRATION OF THE PLAN
	  	6
	 3.1. Board
	  	6
	 3.2. Committee
	  	6
	 3.3. Terms of Awards
	  	7
	 3.4. No Repricing
	  	8
	 3.5. Deferral Arrangement
	  	8
	 3.6. No Liability
	  	9
	 3.7. Share Issuance/Book-Entry
	  	9
	 4. STOCK SUBJECT TO THE PLAN
	  	9
	 4.1. Number of Shares Available for Awards
	  	9
	 4.2. Adjustments in Authorized Shares
	  	9
	 4.3. Share Usage
	  	9
	 5. EFFECTIVE DATE, DURATION AND AMENDMENTS
	  	  10
	 5.1. Effective Date
	  	  10
	 5.2. Term
	  	  10
	 5.3. Amendment and Termination of the Plan
	  	  10
	 6. AWARD ELIGIBILITY AND LIMITATIONS
	  	  10
	 6.1. Service Providers and Other Persons
	  	  10
	 6.2. Successive Awards and Substitute Awards
	  	  10
	 6.3. Limitation on Shares of Stock Subject to Awards and Cash Awards
	  	  11
	 7. AWARD AGREEMENT
	  	  11
	 8. TERMS AND CONDITIONS OF OPTIONS
	  	  12
	 8.1. Option Price
	  	  12
	 8.2. Vesting
	  	  12
	 8.3. Term
	  	  12
	 8.4. Termination of Service
	  	  12
	 8.5. Limitations on Exercise of Option
	  	  13
	 8.6. Method of Exercise
	  	  13
	 8.7. Rights of Holders of Options
	  	  13
	 8.8. Delivery of Stock Certificates
	  	  13
	 8.9. Transferability of Options
	  	  13
	 8.10. Family Transfers
	  	  13
	 8.11. Limitations on Incentive Stock Options
	  	  14
	 8.12. Notice of Disqualifying Disposition
	  	  14
	 9. TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS
	  	  14
	 9.1. Right to Payment and Grant Price
	  	  14
	 9.2. Other Terms
	  	  14
	 9.3. Term
	  	  15

  

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	 9.4. Transferability of SARS
	  	15
	 9.5. Family Transfers
	  	15
	 10. TERMS AND CONDITIONS OF RESTRICTED STOCK AND RESTRICTED STOCK UNITS
	  	15
	 10.1. Grant of Restricted Stock or Restricted Stock Units
	  	15
	 10.2. Restrictions
	  	15
	 10.3. Restricted Stock Certificates
	  	16
	 10.4. Rights of Holders of Restricted Stock
	  	16
	 10.5. Rights of Holders of Restricted Stock Units
	  	16
	 10.5.1. Voting and Dividend Rights
	  	16
	 10.5.2. Creditor’s Rights
	  	17
	 10.6. Termination of Service
	  	17
	 10.7. Purchase of Restricted Stock
	  	17
	 10.8. Delivery of Stock
	  	17
	 11. TERMS AND CONDITIONS OF UNRESTRICTED STOCK AWARDS
	  	17
	 12. FORM OF PAYMENT FOR OPTIONS AND RESTRICTED STOCK
	  	18
	 12.1. General Rule
	  	18
	 12.2. Surrender of Stock
	  	18
	 12.3. Cashless Exercise
	  	18
	 12.4. Other Forms of Payment
	  	18
	 13. TERMS AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS
	  	18
	 13.1. Dividend Equivalent Rights
	  	18
	 13.2. Termination of Service
	  	19
	 14. TERMS AND CONDITIONS OF PERFORMANCE SHARES, PERFORMANCE UNITS, PERFORMANCE AWARDS
	  	
	 AND ANNUAL INCENTIVE AWARDS
	  	19
	 14.1. Grant of Performance Units/Performance Shares
	  	19
	 14.2. Value of Performance Units/Performance Shares
	  	19
	 14.3. Earning of Performance Units/Performance Shares
	  	19
	 14.4. Form and Timing of Payment of Performance Units/Performance Shares
	  	19
	 14.5. Performance Conditions
	  	20
	 14.6. Performance Awards or Annual Incentive Awards Granted to Designated Covered Employees
	  	20
	 14.6.1. Performance Goals Generally
	  	20
	 14.6.2. Timing For Establishing Performance Goals
	  	20
	 14.6.3. Settlement of Awards; Other Terms
	  	20
	 14.6.4. Performance Measures
	  	21
	 14.6.5. Evaluation of Performance
	  	22
	 14.6.6. Adjustment of Performance-Based Compensation
	  	23
	 14.6.7. Administrator Discretion
	  	23
	 14.7. Status of Section Awards Under Code Section 162(m)
	  	23

  

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	 15. PARACHUTE LIMITATIONS
	  	23
	 16. REQUIREMENTS OF LAW
	  	24
	 16.1. General
	  	24
	 16.2. Rule 16b-3
	  	25
	 17. EFFECT OF CHANGES IN CAPITALIZATION
	  	25
	 17.1. Changes in Stock
	  	25
	 17.2. Reorganization in Which the Company Is the Surviving Entity Which does not Constitute a Corporate Transaction
	  	26
	 17.3. Corporate Transaction in which Awards are not Assumed
	  	26
	 17.4. Corporation Transaction in which Awards are Assumed
	  	27
	 17.5. Adjustments
	  	27
	 17.6. No Limitations on Company
	  	28
	 18. GENERAL PROVISIONS
	  	28
	 18.1. Disclaimer of Rights
	  	28
	 18.2. Nonexclusivity of the Plan
	  	28
	 18.3. Withholding Taxes
	  	28
	 18.4. Captions
	  	29
	 18.5. Other Provisions
	  	29
	 18.6. Number and Gender
	  	29
	 18.7. Severability
	  	29
	 18.8. Governing Law
	  	29
	 18.9. Code Section 409A
	  	30

  

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 EDGEWATER TECHNOLOGY, INC. 
 2008 OMNIBUS INCENTIVE PLAN 
 Edgewater Technology, Inc., a Delaware corporation
(the “Company”), sets forth herein the terms of its 2008 Omnibus Incentive Plan (the “Plan”), as follows: 
  

	1.	PURPOSE 

 The Plan is intended to enhance the
Company’s and its Affiliates’ (as defined herein) ability to attract and retain highly qualified officers, directors, key employees, and other persons, and to motivate such persons to serve the Company and its Affiliates and to expend
maximum effort to improve the business results and earnings of the Company, by providing to such persons an opportunity to acquire or increase a direct proprietary interest in the operations and future success of the Company. To this end, the Plan
provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units (or RSUs), unrestricted stock, dividend equivalent rights, and cash awards. Any of these awards may, but need not, be made as performance
incentives to reward attainment of annual or long-term performance goals in accordance with the terms hereof. Stock options granted under the Plan may be non-qualified stock options or incentive stock options, as provided herein, except that stock
options granted to outside directors and any consultants or advisers providing services to the Company or an Affiliate of the Company shall in all cases be non-qualified stock options. 
  

	2.	DEFINITIONS 

 For purposes of interpreting the Plan
and related documents (including Award Agreements), the following definitions shall apply: 
 2.1 “Administrator” means the
Board or, where pursuant to Section 3.2 the Board has delegated its authority to the Committee or one or more directors of the Company, the Committee or such directors. 
 2.2 “Affiliate” means, with respect to any person or entity (such as the Company), any company or other trade or business that controls,
is controlled by or is under common control with such person or entity (such as the Company) within the meaning of Rule 405 of Regulation C under the Securities Act, including, without limitation, any subsidiary of such entity (such as a
Subsidiary). For purposes of granting stock options or stock appreciation rights, an entity may not be considered an Affiliate if it results in noncompliance with Code Section 409A. 
 2.3 “Annual Incentive Award” means an Award made subject to attainment of performance goals (as described in Section 14)
over a performance period of up to one year (the Company’s fiscal year, unless otherwise specified by the Committee). 
 2.4
“Award” means a grant of an Option, Stock Appreciation Right, Restricted Stock, Unrestricted Stock, Restricted Stock Unit, Dividend Equivalent Right, Performance Share, Performance Unit or cash award under the Plan. 

 2.5 “Award Agreement” means the agreement between the Company and a Grantee that
evidences and sets out the terms and conditions of an Award. 
 2.6 “Benefit Arrangement” shall have the meaning set forth
in Section 15 hereof. 
 2.7 “Board” means the Board of Directors of the Company. 
 2.8 “Cause” means, as determined by the Administrator and unless otherwise provided in an applicable agreement with the Company or an
Affiliate of the Company, that a termination of Service shall have taken place as a result of (i) any act of personal dishonesty by a Grantee in connection with his or her responsibilities as a Service Provider and intended to result in
substantial personal enrichment to the Grantee, (ii) the Grantee’s willful act constituting Gross Misconduct and which is injurious to the Company, or (iii) a Grantee’s conviction or plea of a felony which the Administrator
reasonably believes had or will have a material detrimental effect on the Company’s reputation or business. 
 2.9
“Code” means the Internal Revenue Code of 1986, as now in effect or as hereafter amended. 
 2.10
“Committee” means a committee of, and designated from time to time by resolution of, the Board (including the Compensation Committee of the Board of Directors), which shall be constituted as provided in Section 3.2.

 2.11 “Company” means Edgewater Technology, Inc. 
 2.12 “Corporate Transaction” means the occurrence of any of the following: (i) any person or group of persons (as defined in
Section 13(d) and 14(d) of the Exchange Act) together with its Affiliates, excluding employee benefit plans of the Company, is or becomes, directly or indirectly, the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act)
of securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding securities; or (ii) a merger or consolidation of the Company with any other corporation or entity is consummated
regardless of which entity is the survivor, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or being
converted into voting securities of the surviving entity or its parent) at least 50% of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or
(iii) the Company is completely liquidated or all or substantially all of the Company’s assets are sold. 
 2.13 “Covered
Employee” means a Grantee who is a covered employee within the meaning of Section 162(m)(3) of the Code. 
 2.14
“Disability” means the Grantee is unable to perform each of the essential duties of such Grantee’s position by reason of a medically determinable physical or mental impairment which is potentially permanent in character or
which can be expected to last for a continuous period of not less than 12 months; provided, however, that, with respect to rules regarding expiration of an Incentive Stock Option following termination of the 

  

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Grantee’s Service, Disability shall mean the Grantee is unable to engage in any substantial gainful activity by reason of a medically determinable
physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. 
 2.15 “Dividend Equivalent Right” means a right, granted to a Grantee under Section 13 hereof, to receive cash, Stock, other Awards or other property equal in value to dividends paid with
respect to a specified number of shares of Stock, or other periodic payments. 
 2.16 “Effective Date” means June 11,
2008, the date the Plan was approved by the stockholders. 
 2.17 “Exchange Act” means the Securities Exchange Act of 1934,
as now in effect or as hereafter amended. 
 2.18 “Fair Market Value” means the value of a share of Stock, determined as
follows: if on the Grant Date or other determination date the Stock is listed on an established national or regional stock exchange, or is publicly traded on an established securities market, the Fair Market Value of a share of Stock shall be the
closing price of the Stock on such exchange or in such market (if there is more than one such exchange or market the Administrator shall determine the appropriate exchange or market) on the Grant Date or such other determination date (or if there is
no such reported closing price, the Fair Market Value shall be the mean between the highest bid and lowest asked prices or between the high and low sale prices on such trading day) or, if no sale of Stock is reported for such trading day, on the
next preceding day on which any sale shall have been reported. If the Stock is not listed on such an exchange, quoted on such system or traded on such a market, Fair Market Value shall be the value of the Stock as determined by the Administrator by
the reasonable application of a reasonable valuation method in a manner consistent with Code Section 409A. 
 2.19 “Family
Member” means a person who is a spouse, former spouse, child, stepchild, grandchild, parent, stepparent, grandparent, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother, sister, brother-in-law, or
sister-in-law, including adoptive relationships, of the Grantee, any person sharing the Grantee’s household (other than a tenant or employee), a trust in which any one or more of these persons have more than fifty percent of the beneficial
interest, a foundation in which any one or more of these persons (or the Grantee) control the management of assets, and any other entity in which one or more of these persons (or the Grantee) own more than fifty percent of the voting interests.

 2.20 “Grant Date” means, as determined by the Administrator, the latest to occur of (i) the date as of which the
Administrator approves an Award, (ii) the date on which the recipient of an Award first becomes eligible to receive an Award under Section 6 hereof, or (iii) such other date as may be specified by the Administrator. 

2.21 “Grantee” means a person who receives or holds an Award under the Plan. 
  

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 2.22 “Gross Misconduct” means (i) theft or damage of Company property,
(ii) use, possession, sale or distribution of illegal drugs, (iii) being under the influence of alcohol or drugs (except to the extent medically prescribed) while on duty or on Company premises, (iv) involvement in activities
representing conflicts of interest; (v) improper disclosure of confidential information; (vi) conduct endangering, or likely to endanger, the health or safety of another Service Provider, or (vii) falsifying or misrepresenting
information on Company records. 
 2.23 “Incentive Stock Option” means an “incentive stock option” within the
meaning of Section 422 of the Code, or the corresponding provision of any subsequently enacted tax statute, as amended from time to time. 
 2.24 “Non-qualified Stock Option” means an Option that is not an Incentive Stock Option. 
 2.25
“Option” means an option to purchase one or more shares of Stock pursuant to the Plan. 
 2.26 “Option
Price” means the exercise price for each share of Stock subject to an Option. 
 2.27 “Other Agreement” shall have
the meaning set forth in Section 15 hereof. 
 2.28 “Outside Director” means a member of the Board who is not an
officer or employee of the Company. 
 2.29 “Performance Award” means an Award made subject to the attainment of performance
goals (as described in Section 14) over a performance period of up to five (5) years. 
 2.30 “Performance-Based
Compensation” means compensation under an Award that is intended to satisfy the requirements of Code Section 162(m) for certain performance-based compensation paid to Covered Employees. Notwithstanding the foregoing, nothing in this
Plan shall be construed to mean that an Award which does not satisfy the requirements for performance-based compensation under Code Section 162(m) does not constitute performance-based compensation for other purposes, including Code
Section 409A. 
 2.31 “Performance Measures” means measures as described in Section 14 on which the
performance goals are based and which are approved by the Company’s shareholders pursuant to this Plan in order to qualify Awards as Performance-Based Compensation. 
 2.32 “Performance Period” means the period of time during which the performance goals must be met in order to determine the degree of payout and/or vesting with respect to an Award. 
 2.33 “Performance Share” means an Award under Section 14 herein and subject to the terms of this Plan, denominated in
Shares, the value of which at the time it 

  

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is payable is determined as a function of the extent to which corresponding performance criteria have been achieved. 
 2.34 “Performance Unit” means an Award under Section 14 herein and subject to the terms of this Plan, denominated in units,
the value of which at the time it is payable is determined as a function of the extent to which corresponding performance criteria have been achieved. Unless otherwise stated as payable in shares of Stock, each Performance Unit is valued at one
dollar. 
 2.35 “Plan” means this Edgewater Technology, Inc. 2008 Omnibus Incentive Plan. 
 2.36 “Prior Plans” means the Edgewater Technology, Inc. Amended and Restated 2000 Plan and the 2003 Incentive Plan. 
 2.37 “Purchase Price” means the purchase price for each share of Stock pursuant to a grant of Restricted Stock or Unrestricted Stock.

 2.38 “Reporting Person” means a person who is required to file reports under Section 16(a) of the Exchange Act.

 2.39 “Restricted Stock” means shares of Stock, awarded to a Grantee pursuant to Section 10 hereof.

 2.40 “Restricted Stock Unit” or “RSU” means a bookkeeping entry representing the equivalent of one share
of Stock awarded to a Grantee pursuant to Section 10 hereof. 
 2.41 “SAR Exercise Price” means the per share
exercise price of a SAR granted to a Grantee under Section 9 hereof. 
 2.42 “Securities Act” means the
Securities Act of 1933, as now in effect or as hereafter amended. 
 2.43 “Service” means service as a Service Provider to
the Company or an Affiliate of the Company. Unless otherwise stated in the applicable Award Agreement, a Grantee’s change in position or duties shall not result in interrupted or terminated Service, so long as such Grantee continues to be a
Service Provider to the Company or an Affiliate of the Company. Subject to the preceding sentence, whether a termination of Service shall have occurred for purposes of the Plan shall be determined by the Administrator, which determination shall be
final, binding and conclusive. 
 2.44 “Service Provider” means an employee, officer or director of the Company or an
Affiliate of the Company, or a consultant or adviser (who is a natural person) currently providing services to the Company or an Affiliate of the Company. 
 2.45 “Stock” means the common stock, par value $.01 per share, of the Company. 
  

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 2.46 “Stock Appreciation Right” or “SAR” means a right granted to a
Grantee under Section 9 hereof. 
 2.47 “Subsidiary” means any “subsidiary corporation” of the Company
within the meaning of Section 424(f) of the Code. 
 2.48 “Substitute Awards” means Awards granted upon assumption of,
or in substitution for, outstanding awards previously granted by a company or other entity acquired by the Company or any Affiliate of the Company or with which the Company or any Affiliate of the Company combines. 
 2.49 “Ten Percent Stockholder” means an individual who owns more than ten percent (10%) of the total combined voting power of all
classes of outstanding stock of the Company, its parent or any of its Subsidiaries. In determining stock ownership, the attribution rules of Section 424(d) of the Code shall be applied. 
 2.50 “Unrestricted Stock” means an Award pursuant to Section 11 hereof. 
  

	3.	ADMINISTRATION OF THE PLAN 

 3.1. Board

 The Board shall have such powers and authorities related to the administration of the Plan as are consistent with the Company’s
certificate of incorporation and by-laws and applicable law. The Board shall have full power and authority to take all actions and to make all determinations required or provided for under the Plan, any Award or any Award Agreement, and shall have
full power and authority to take all such other actions and make all such other determinations not inconsistent with the specific terms and provisions of the Plan that the Board deems to be necessary or appropriate to the administration of the Plan,
any Award or any Award Agreement. All such actions and determinations shall be by the affirmative vote of a majority of the members of the Board present at a meeting or by unanimous consent of the Board executed in writing in accordance with the
Company’s certificate of incorporation and by-laws and applicable law. The interpretation and construction by the Board of any provision of the Plan, any Award or any Award Agreement shall be final, binding and conclusive. 
 3.2. Committee. 
 The Board from time
to time may delegate to the Committee such powers and authorities related to the administration and implementation of the Plan, as set forth in Section 3.1 above and other applicable provisions, as the Board shall determine, consistent
with the certificate of incorporation and by-laws of the Company and applicable law. 
 (i) Except as provided in Subsection
(ii) and except as the Board may otherwise determine, the Committee, if any, appointed by the Board to administer the Plan shall consist of two or more Outside Directors of the Company who: (a) qualify as “outside directors”
within the meaning of Section 162(m) of the Code and who (b) meet such other requirements as may be established from time to time by 

  

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the Securities and Exchange Commission for plans intended to qualify for exemption under Rule 16b-3 (or its successor) under the Exchange Act and who
(c) comply with the independence requirements of the stock exchange on which the Common Stock is listed. 
 (ii) The
Board may also appoint one or more separate committees of the Board, each composed of one or more directors of the Company who need not be Outside Directors, but one of whom must be the Chief Executive Officer (or functional equivalent), who may
administer the Plan with respect to employees or other Service Providers who are not officers or directors of the Company, may grant Awards under the Plan to such employees or other Service Providers, and may determine all terms of such Awards.

 In the event that the Plan, any Award or any Award Agreement entered into hereunder provides for any action to be taken by or determination to be made by
the Board, such action may be taken or such determination may be made by an Administrator if the power and authority to do so has been delegated to such Administrator by the Board as provided for in this Section. Unless otherwise expressly
determined by the Board, any such action or determination by the Administrator shall be final, binding and conclusive. To the extent permitted by law, the Committee may delegate its authority under the Plan to a member of the Board. 
 3.3. Terms of Awards. 
 Subject to the
other terms and conditions of the Plan or any restrictive delegation of authority by the Board or any Committee, the Administrator shall have full and final authority to: 
 (i) designate Grantees, 
 (ii) determine the type or types of Awards to be made to a Grantee, 
 (iii) determine the
number of shares of Stock to be subject to an Award, 
 (iv) establish the terms and conditions of each Award (including, but
not limited to, the exercise price of any Option, the nature and duration of any restriction or condition (or provision for lapse thereof) relating to the vesting, exercise, transfer, or forfeiture of an Award or the shares of Stock subject thereto,
the treatment of an Award in the event of a change of control, and any terms or conditions that may be necessary to qualify Options as Incentive Stock Options), 
 (v) prescribe the form of each Award Agreement evidencing an Award, and 
 (vi) amend, modify, or supplement the terms of any outstanding Award. Such authority specifically includes the authority, in order to
effectuate the purposes of the Plan but without amending the Plan, to modify Awards to eligible individuals who are foreign nationals or are individuals who are employed outside the United States to recognize differences in local law, tax
policy, or custom. Notwithstanding the foregoing, no amendment, modification or supplement of any 

  

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Award shall, without the consent of the Grantee, impair the Grantee’s rights under such Award. 
 The Company may retain the right in an Award Agreement to cause a forfeiture of the gain realized by a Grantee on account of actions taken by the Grantee
in violation or breach of or in conflict with any employment agreement, non-competition agreement, any agreement prohibiting solicitation of employees or clients of the Company or any Affiliate of the Company thereof or any confidentiality
obligation with respect to the Company or any Affiliate of the Company thereof or otherwise in competition with the Company or any Affiliate of the Company thereof, to the extent specified in such Award Agreement applicable to the Grantee. In
addition, the Company may annul an Award if the Grantee is an employee of the Company or an Affiliate of the Company thereof and is terminated for Cause as defined in the applicable Award Agreement or the Plan, as applicable. 
 Furthermore, if the Company is required to prepare an accounting restatement due to the material noncompliance of the Company, as a result of misconduct,
with any financial reporting requirement under the securities laws, the individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002 and any Grantee who knowingly engaged in the misconduct, was grossly
negligent in engaging in the misconduct, knowingly failed to prevent the misconduct or was grossly negligent in failing to prevent the misconduct, the Administrator has the authority to require, and may require the Grantee, who shall be obligated if
so required, to reimburse the Company for the amount of any payment in settlement of an Award earned or accrued during the twelve-(12)month period following the first public issuance or filing with the United States Securities and Exchange
Commission (whichever first occurred) of the financial document embodying such financial reporting requirement. 
 3.4. No Repricing 

 Notwithstanding anything in this Plan to the contrary, no amendment or modification may be made to an outstanding Option or SAR, including,
without limitation, by replacement of Options or SARs with cash or other award type, that would be treated as a repricing under the rules of the stock exchange on which the Stock is listed, in each case, without the approval of the stockholders of
the Company, provided, that, appropriate adjustments may be made to outstanding Options and SARs pursuant to Section 5.3 or Section 17 and may be made to make changes to achieve compliance with applicable law, including
Internal Revenue Code Section 409A. 
 3.5. Deferral Arrangement. 
 The Administrator may permit or require the deferral of any award payment into a deferred compensation arrangement, subject to such rules and procedures
as it may establish, which may include provisions for the payment or crediting of interest or dividend equivalents, including converting such credits into deferred Stock equivalents. Any such deferrals shall be made in a manner that complies with
Code Section 409A. 
  

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 3.6. No Liability. 
 No Administrator shall be liable for any action or determination made in good faith with respect to the Plan or any Award or Award Agreement. 
 3.7. Share Issuance/Book-Entry 
 Notwithstanding any provision of this Plan to the contrary, the issuance of the Stock under the Plan may be evidenced in such a manner as the Administrator, in its discretion, deems appropriate, including, without limitation, book-entry
registration or issuance of one or more Stock certificates. 
  

	4.	STOCK SUBJECT TO THE PLAN 

 4.1. Number of Shares
Available for Awards 
 Subject to adjustment as provided in Section 17 hereof, the number of shares of Stock available for
issuance under the Plan shall be equal to one million five hundred thousand (1,500,000), all of which may be granted as Incentive Stock Options, increased by shares of Stock covered by awards granted under a Prior Plan that are available for grant
as of the Effective Date or become available after the Effective Date for grant pursuant to Section 4.3. Stock issued or to be issued under the Plan shall be authorized but unissued shares; or, to the extent permitted by applicable law,
issued shares that have been reacquired by the Company. 
 4.2. Adjustments in Authorized Shares 
 The Administrator shall have the right to substitute or assume Awards in connection with mergers, reorganizations, separations, or other transactions to
which Section 424(a) of the Code applies. The number of shares of Stock reserved pursuant to Section 4 shall be increased by the corresponding number of Awards assumed and, in the case of a substitution, by the net increase in the
number of shares of Stock subject to Awards before and after the substitution. 
 4.3. Share Usage 
 Shares covered by an Award shall be counted as used as of the Grant Date. Any shares of Stock that are subject to Awards of Options shall be counted
against the limit set forth in Section 4.1 as one (1) share for every one (1) share subject to an Award of Options. With respect to SARs, the number of shares subject to an award of SARs will be counted against the aggregate number of
shares available for issuance under the Plan regardless of the number of shares actually issued to settle the SAR upon exercise. Any shares that are subject to Awards other than Options or Stock Appreciation Rights shall be counted against the limit
set forth in Section 4.1 as 1.63 shares for every one (1) share granted. If any shares covered by an Award granted under the Plan or a Prior Plan are not purchased or are forfeited or expire, or if an Award otherwise terminates
without delivery of any Stock subject thereto or is settled in cash in lieu of shares, then the number of shares of Stock counted against the aggregate number of shares available under the Plan with respect to such Award shall, to the extent of any
such forfeiture, termination or expiration, again be available for 

  

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making Awards under the Plan in the same amount as such shares were counted against the limit set forth in Section 4.1, provided that any shares
covered by an Award granted under a Prior Plan will again be available for making Awards under the Plan in the same amount as such shares were counted against the limits set forth in the applicable Prior Plan. The number of shares of Stock available
for issuance under the Plan shall not be increased by (i) any shares of Stock tendered or withheld or Award surrendered in connection with the purchase of shares of Stock upon exercise of an Option as described in Section 12.2, or
(ii) any shares of Stock deducted or delivered from an Award payment in connection with the Company’s tax withholding obligations as described in Section 18.3. 
  

	5.	EFFECTIVE DATE, DURATION AND AMENDMENTS 

 5.1.
Effective Date. 
 The Plan shall be effective as of the Effective Date. Following the Effective Date no awards will be made under the
Prior Plans. 
 5.2. Term. 
 The Plan shall terminate automatically ten (10) years after the Effective Date and may be terminated on any earlier date as provided in Section 5.3. 
 5.3. Amendment and Termination of the Plan 
 The Board may, at any time and from time to time, amend, suspend, or terminate the Plan as to any shares of Stock as to which Awards have not been made. An amendment shall be contingent on approval of the Company’s stockholders to the
extent stated by the Board, required by applicable law or required by applicable stock exchange listing requirements. No Awards shall be made after termination of the Plan. No amendment, suspension, or termination of the Plan shall, without the
consent of the Grantee, impair rights or obligations under any Award theretofore awarded under the Plan. 
  

	6.	AWARD ELIGIBILITY AND LIMITATIONS 

 6.1. Service
Providers and Other Persons 
 Subject to this Section 6, Awards may be made under the Plan to: (i) any Service Provider
to the Company or of any Affiliate of the Company, including any Service Provider who is an officer or director of the Company, or of any Affiliate of the Company, as the Administrator shall determine and designate from time to time and
(ii) any other individual whose participation in the Plan is determined to be in the best interests of the Company by the Administrator. 
 6.2. Successive Awards and Substitute Awards. 
 An eligible person may receive more than one Award, subject to such
restrictions as are provided herein. Notwithstanding Sections 8.1 and 9.1, the Option Price of an Option or the grant price of a SAR that is a Substitute Award may be less than 100% of the Fair Market Value of a share of Common Stock
on the original date of grant; provided, that, the 

  

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Option Price or grant price is determined in accordance with the principles of Code Section 424 and the regulations thereunder. 
 6.3. Limitation on Shares of Stock Subject to Awards and Cash Awards. 
 During any time when the Company has a class of equity security registered under Section 12 of the Exchange Act: 
 (i) the maximum number of shares of Stock subject to Options or SARs that can be awarded under the Plan to any person eligible for an
Award under Section 6 hereof is one hundred thousand (100,000) per twelve-month period; provided, however, the maximum number of shares of Stock subject to Options or SARs that can be awarded under the Plan to any person eligible
for an Award under Section 6 in the year that the person is first employed by the Company is two hundred thousand (200,000); 
 (ii) the maximum number of shares that can be awarded under the Plan, other than pursuant to an Option or SARs, to any person eligible for an Award under Section 6 hereof is fifty thousand
(50,000) per twelve-month period; provided, however, the maximum number of shares of Stock subject to Awards other than Options or SARs that can be awarded under the Plan to any person eligible for an Award under Section 6 in the year that
the person is first employed by the Company is one hundred thousand (100,000); and 
 (iii) the maximum amount that may be
earned as an Annual Incentive Award or other cash Award in any 12 month period by any person eligible for an Award shall be one million dollars ($1,000,000) and the maximum amount that may be earned as a Performance Award or other cash Award in
respect of a performance period by any person eligible for an Award shall be two million dollars ($2,000,000). 
 The preceding limitations
in this Section 6.3 are subject to adjustment as provided in Section 17 hereof. 
  

	7.	AWARD AGREEMENT 

 Each Award granted pursuant to the
Plan shall be evidenced by an Award Agreement, in such form or forms as the Administrator shall from time to time determine. Award Agreements granted from time to time or at the same time need not contain similar provisions but shall be consistent
with the terms of the Plan. Each Award Agreement evidencing an Award of Options shall specify whether such Options are intended to be Non-qualified Stock Options or Incentive Stock Options, and in the absence of such specification such options shall
be deemed Non-qualified Stock Options. 
  

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	8.	TERMS AND CONDITIONS OF OPTIONS 

 8.1. Option
Price 
 The Option Price of each Option shall be fixed by the Administrator and stated in the Award Agreement evidencing such Option.
Except in the case of Substitute Awards, the Option Price of each Option shall be at least the Fair Market Value on the Grant Date of a share of Stock; provided, however, that in the event that a Grantee is a Ten Percent Stockholder,
the Option Price of an Option granted to such Grantee that is intended to be an Incentive Stock Option shall be not less than 110 percent of the Fair Market Value of a share of Stock on the Grant Date. In no case shall the Option Price of any Option
be less than the par value of a share of Stock. 
 8.2. Vesting. 
 Subject to Sections 8.3 and 17.3 hereof, each Option granted under the Plan shall become exercisable at such times and under such conditions as
shall be determined by the Administrator and stated in the Award Agreement. For purposes of this Section 8.2, fractional numbers of shares of Stock subject to an Option shall be rounded down to the next nearest whole number. 

8.3. Term. 
 Each Option granted
under the Plan shall terminate, and all rights to purchase shares of Stock thereunder shall cease, upon the expiration of ten years from the date such Option is granted, or under such circumstances and on such date prior thereto as is set forth in
the Plan or as may be fixed by the Administrator and stated in the Award Agreement relating to such Option; provided, however, that in the event that the Grantee is a Ten Percent Stockholder, an Option granted to such Grantee that is
intended to be an Incentive Stock Option shall not be exercisable after the expiration of five years from its Grant Date. If on the day preceding the date on which a Grantee’s Options would otherwise terminate, the Fair Market Value of shares
of Stock underlying a Grantee’s Options is greater than the Option Price of such Options, the Company shall, prior to the termination of such Options and without any action being taken on the part of the Grantee, consider such Options to have
been exercised by the Grantee. The Company shall deduct from the shares of Stock deliverable to the Grantee upon such exercise the number of shares of Stock necessary to satisfy payment of the Option Price and all withholding obligations.

 8.4. Termination of Service. 
 Each Award Agreement shall set forth the extent to which the Grantee shall have the right to exercise the Option following termination of the Grantee’s Service. Such provisions shall be determined in the sole discretion of the
Administrator, need not be uniform among all Options issued pursuant to the Plan, and may reflect distinctions based on the reasons for termination of Service. 
  

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 8.5. Limitations on Exercise of Option. 
 Notwithstanding any other provision of the Plan, in no event may any Option be exercised, in whole or in part, prior to the date the Plan is approved by
the stockholders of the Company as provided herein or after the occurrence of an event referred to in Section 17 hereof which results in termination of the Option. 
 8.6. Method of Exercise. 
 Subject to
the terms of Article 12 and Section 18.3, an Option that is exercisable may be exercised by the Grantee’s delivery to the Company of notice of exercise on any business day, at the Company’s principal office, on the form
specified by the Company. Such notice shall specify the number of shares of Stock with respect to which the Option is being exercised and shall be accompanied by payment in full of the Option Price of the shares for which the Option is being
exercised plus the amount (if any) of federal and/or other taxes which the Company may, in its judgment, be required to withhold with respect to an Award. 
 8.7. Rights of Holders of Options 
 Unless otherwise stated in the applicable Award Agreement, an
individual holding or exercising an Option shall have none of the rights of a stockholder (for example, the right to receive cash or dividend payments or distributions attributable to the subject shares of Stock or to direct the voting of the
subject shares of Stock ) until the shares of Stock covered thereby are fully paid and issued to him or her. Except as provided in Section 17 hereof, no adjustment shall be made for dividends, distributions or other rights for which the
record date is prior to the date of such issuance. 
 8.8. Delivery of Stock Certificates. 
 Promptly after the exercise of an Option by a Grantee and the payment in full of the Option Price, such Grantee shall be entitled to the issuance of a
stock certificate or certificates or, as provided in Section 3.7, a book entry registration evidencing his or her ownership of the shares of Stock subject to the Option. 
 8.9. Transferability of Options 
 Except as provided in Section 8.10, during the lifetime of a Grantee, only the Grantee (or, in the event of legal incapacity or incompetency, the Grantee’s guardian or legal representative) may exercise an Option. Except as
provided in Section 8.10, no Option shall be assignable or transferable by the Grantee to whom it is granted, other than by will or the laws of descent and distribution. 
 8.10. Family Transfers. 
 If
authorized in the applicable Award Agreement, a Grantee may transfer, not for value, all or part of an Option which is not an Incentive Stock Option to any Family Member. For the purpose of this Section 8.10, a “not for value”
transfer is a transfer which is (i) a gift, (ii) a transfer under a domestic relations order in settlement of marital property rights; or (iii) a transfer to an entity in which more than fifty percent of the voting 

  

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interests are owned by Family Members (or the Grantee). Following a transfer under this Section 8.10, any such Option shall continue to be
subject to the same terms and conditions as were applicable immediately prior to transfer. Subsequent transfers of transferred Options are prohibited except to Family Members of the original Grantee in accordance with this Section 8.10
or by will or the laws of descent and distribution. The events of termination of Service of Section 8.4 hereof shall continue to be applied with respect to the original Grantee, following which the Option shall be exercisable by the
transferee only to the extent, and for the periods specified, in Section 8.4. 
 8.11. Limitations on Incentive Stock Options.

 An Option shall constitute an Incentive Stock Option only (i) if the Grantee of such Option is an employee of the Company or any
Subsidiary of the Company; (ii) to the extent specifically provided in the related Award Agreement; and (iii) to the extent that the aggregate Fair Market Value (determined at the time the Option is granted) of the shares of Stock with
respect to which all Incentive Stock Options held by such Grantee become exercisable for the first time during any calendar year (under the Plan and all other plans of the Grantee’s employer and its Affiliates) does not exceed $100,000. This
limitation shall be applied by taking Options into account in the order in which they were granted. 
 8.12. Notice of Disqualifying
Disposition 
 If any Grantee shall make any disposition of shares of Stock issued pursuant to the exercise of an Incentive Stock Option
under the circumstances described in Code Section 421(b) (relating to certain disqualifying dispositions), such Grantee shall notify the Company of such disposition within ten (10) days thereof. 
  

	9.	TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS 

 9.1. Right to Payment and Grant Price. 
 A SAR shall confer on the Grantee to whom it is granted a right to receive, upon
exercise thereof, the excess of (A) the Fair Market Value of one share of Stock on the date of exercise over (B) the grant price of the SAR as determined by the Administrator. The Award Agreement for a SAR shall specify the grant price of
the SAR, which shall be at least the Fair Market Value of a share of Stock on the date of grant. SARs may be granted in conjunction with all or part of an Option granted under the Plan or at any subsequent time during the term of such Option, in
conjunction with all or part of any other Award or without regard to any Option or other Award; provided that a SAR that is granted subsequent to the Grant Date of a related Option must have a SAR Price that is no less than the Fair Market Value of
one share of Stock on the SAR Grant Date. 
 9.2. Other Terms. 
 The Administrator shall determine at the date of grant or thereafter, the time or times at which and the circumstances under which a SAR may be exercised
in whole or in part (including based on achievement of performance goals and/or future service requirements), the time or times at which SARs shall cease to be or become exercisable following termination of Service or upon other conditions, the
method of exercise, method 

  

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of settlement, form of consideration payable in settlement, method by or forms in which Stock will be delivered or deemed to be delivered to Grantees,
whether or not a SAR shall be in tandem or in combination with any other Award, and any other terms and conditions of any SAR. 
 9.3.
Term. 
 Each SAR granted under the Plan shall terminate, and all rights thereunder shall cease, upon the expiration of ten years from the
date such SAR is granted, or under such circumstances and on such date prior thereto as is set forth in the Plan or as may be fixed by the Administrator and stated in the Award Agreement relating to such SAR. 
 9.4. Transferability of SARS 
 Except
as provided in Section 9.5, during the lifetime of a Grantee, only the Grantee (or, in the event of legal incapacity or incompetency, the Grantee’s guardian or legal representative) may exercise a SAR. Except as provided in
Section 9.5, no SAR shall be assignable or transferable by the Grantee to whom it is granted, other than by will or the laws of descent and distribution. 
 9.5. Family Transfers. 
 If authorized in the applicable Award Agreement, a Grantee may transfer, not
for value, all or part of a SAR to any Family Member. For the purpose of this Section 9.5, a “not for value” transfer is a transfer which is (i) a gift, (ii) a transfer under a domestic relations order in settlement
of marital property rights; or (iii) a transfer to an entity in which more than fifty percent of the voting interests are owned by Family Members (or the Grantee). Following a transfer under this Section 9.5, any such SAR shall
continue to be subject to the same terms and conditions as were applicable immediately prior to transfer. Subsequent transfers of transferred SARs are prohibited except to Family Members of the original Grantee in accordance with this
Section 9.5 or by will or the laws of descent and distribution. 
  

	10.	TERMS AND CONDITIONS OF RESTRICTED STOCK and Restricted stock units 

 10.1. Grant of Restricted Stock or Restricted Stock Units. 
 Awards of Restricted Stock or Restricted
Stock Units may be made for no consideration (other than par value of the shares which is deemed paid by Services already rendered). 
 10.2. Restrictions. 
 At the time a grant of Restricted Stock or Restricted Stock Units is made, the Administrator may, in
its sole discretion, establish a period of time (a “restricted period”) applicable to such Restricted Stock or Restricted Stock Units. Each Award of Restricted 

  

 - 15 - 

 
Stock or Restricted Stock Units may be subject to a different restricted period. The Administrator may, in its sole discretion, at the time a grant of
Restricted Stock or Restricted Stock Units is made, prescribe restrictions in addition to or other than the expiration of the restricted period, including the satisfaction of corporate or individual performance objectives, which may be applicable to
all or any portion of the Restricted Stock or Restricted Stock Units as described in Article 14. Neither Restricted Stock nor Restricted Stock Units may be sold, transferred, assigned, pledged or otherwise encumbered or disposed of during the
restricted period or prior to the satisfaction of any other restrictions prescribed by the Administrator with respect to such Restricted Stock or Restricted Stock Units. 
 10.3. Restricted Stock Certificates. 
 The Company shall issue, in the name of each Grantee to whom
Restricted Stock has been granted, stock certificates representing the total number of shares of Restricted Stock granted to the Grantee, as soon as reasonably practicable after the Grant Date. The Administrator may provide in an Award Agreement
that either (i) the Secretary of the Company shall hold such certificates for the Grantee’s benefit until such time as the Restricted Stock is forfeited to the Company or the restrictions lapse, or (ii) such certificates shall be
delivered to the Grantee, provided, however, that such certificates shall bear a legend or legends that comply with the applicable securities laws and regulations and makes appropriate reference to the restrictions imposed under the
Plan and the Award Agreement. In the alternative, as provided in Section 3.7, the Company may make a book entry registration evidencing a Grantee’s ownership of shares of Restricted Stock. 
 10.4. Rights of Holders of Restricted Stock. 
 Unless the Administrator otherwise provides in an Award Agreement, holders of Restricted Stock shall have the right to vote such Stock and the right to receive any dividends declared or paid with respect to such Stock. The Administrator may
provide that any dividends paid on Restricted Stock must be reinvested in shares of Stock, which may or may not be subject to the same vesting conditions and restrictions applicable to such Restricted Stock. All distributions, if any, received by a
Grantee with respect to Restricted Stock as a result of any stock split, stock dividend, combination of shares, or other similar transaction shall be subject to the restrictions applicable to the original Grant. 
 10.5. Rights of Holders of Restricted Stock Units. 
 10.5.1. Voting and Dividend Rights. 
 Holders of Restricted Stock Units shall have no rights as
stockholders of the Company. The Administrator may provide in an Award Agreement evidencing a grant of Restricted Stock Units that the holder of such Restricted Stock Units shall be entitled to receive, upon the Company’s payment of a cash
dividend on its outstanding Stock, a cash payment for each Restricted Stock Unit held equal to the per-share dividend paid on the Stock. Such Award Agreement may also provide that such cash payment will be deemed reinvested in additional Restricted
Stock Units at a price per unit equal to the Fair Market Value of a share of Stock on the date that such dividend is paid. 
  

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 10.5.2. Creditor’s Rights. 
 A holder of Restricted Stock Units shall have no rights other than those of a general creditor of the Company. Restricted Stock Units represent an
unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Award Agreement. 
 10.6.
Termination of Service. 
 Unless the Administrator otherwise provides in an Award Agreement or in writing after the Award Agreement is
issued, upon the termination of a Grantee’s Service, any Restricted Stock or Restricted Stock Units held by such Grantee that have not vested, or with respect to which all applicable restrictions and conditions have not lapsed, shall
immediately be deemed forfeited. Upon forfeiture of Restricted Stock or Restricted Stock Units, the Grantee shall have no further rights with respect to such Award, including but not limited to any right to vote Restricted Stock or any right to
receive dividends with respect to shares of Restricted Stock or Restricted Stock Units. 
 10.7. Purchase of Restricted Stock.

 The Grantee shall be required, to the extent required by applicable law, to purchase the Restricted Stock from the Company at a
Purchase Price equal to the greater of (i) the aggregate par value of the shares of Stock represented by such Restricted Stock or (ii) the Purchase Price, if any, specified in the Award Agreement relating to such Restricted Stock. The
Purchase Price shall be payable in a form described in Section 12 or, in the discretion of the Administrator, in consideration for past or future Services rendered to the Company or an Affiliate of the Company. 
 10.8. Delivery of Stock. 
 Upon the
expiration or termination of any restricted period and the satisfaction of any other conditions prescribed by the Administrator, the restrictions applicable to shares of Restricted Stock or Restricted Stock Units settled in Stock shall lapse, and,
unless otherwise provided in the Award Agreement, a stock certificate for such shares shall be delivered, free of all such restrictions, to the Grantee or the Grantee’s beneficiary or estate, as the case may be. Neither the Grantee, nor the
Grantee’s beneficiary or estate, shall have any further rights with regard to a Restricted Stock Unit once the share of Stock represented by the Restricted Stock Unit has been delivered. 
  

	11.	TERMS AND CONDITIONS OF UNRESTRICTED STOCK AWARDS 

 The Administrator may, in its sole discretion, grant (or sell at par value or such other higher purchase price determined by the Administrator) an Unrestricted Stock Award to any Grantee pursuant to which such Grantee may receive shares of
Stock free of any restrictions (“Unrestricted Stock”) under the Plan. Unrestricted Stock Awards may be granted or sold as described in the preceding sentence in respect of past services and other valid consideration, or in lieu of, or in
addition to, any cash compensation due to such Grantee. 
  

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	12.	FORM OF PAYMENT FOR OPTIONS AND RESTRICTED STOCK 

 12.1. General Rule. 
 Payment of the Option Price for the shares purchased pursuant to the exercise of an Option or the
Purchase Price for Restricted Stock shall be made in cash or in cash equivalents acceptable to the Company. 
 12.2. Surrender of Stock.

 To the extent the Award Agreement so provides, payment of the Option Price for shares purchased pursuant to the exercise of an Option
or the Purchase Price for Restricted Stock may be made all or in part through the tender or attestation to the Company of shares of Stock, which shall be valued, for purposes of determining the extent to which the Option Price or Purchase Price has
been paid thereby, at their Fair Market Value on the date of exercise or surrender. 
 12.3. Cashless Exercise. 
 With respect to an Option only (and not with respect to Restricted Stock), to the extent permitted by law and to the extent the Award Agreement so
provides, payment of the Option Price for shares purchased pursuant to the exercise of an Option may be made all or in part by delivery (on a form acceptable to the Administrator) of an irrevocable direction to a licensed securities broker
acceptable to the Company to sell shares of Stock and to deliver all or part of the sales proceeds to the Company in payment of the Option Price and any withholding taxes described in Section 18.3. 
 12.4. Other Forms of Payment. 
 To the
extent the Award Agreement so provides, payment of the Option Price for shares purchased pursuant to exercise of an Option or the Purchase Price for Restricted Stock may be made in any other form that is consistent with applicable laws, regulations
and rules, including, without limitation, Service. 
  

	13.	TERMS AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS 

 13.1. Dividend Equivalent Rights. 
 A Dividend Equivalent Right is an Award entitling the recipient to receive credits based
on cash distributions that would have been paid on the shares of Stock specified in the Dividend Equivalent Right (or other award to which it relates) if such shares had been issued to and held by the recipient. A Dividend Equivalent Right may be
granted hereunder to any Grantee. The terms and conditions of Dividend Equivalent Rights shall be specified in the grant. Dividend equivalents credited to the holder of a Dividend Equivalent Right may be paid currently or may be deemed to be
reinvested in additional shares of Stock, which may thereafter accrue additional equivalents. Any such reinvestment shall be at Fair Market Value on the date of reinvestment. Dividend Equivalent Rights may be settled in cash or Stock or a
combination thereof, in a single installment or installments, all determined in the sole discretion of the Administrator. A 

  

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Dividend Equivalent Right granted as a component of another Award may provide that such Dividend Equivalent Right shall be settled upon exercise, settlement,
or payment of, or lapse of restrictions on, such other award, and that such Dividend Equivalent Right shall expire or be forfeited or annulled under the same conditions as such other award. A Dividend Equivalent Right granted as a component of
another Award may also contain terms and conditions different from such other award. 
 13.2. Termination of Service. 
 Except as may otherwise be provided by the Administrator either in the Award Agreement or in writing after the Award Agreement is issued, a Grantee’s
rights in all Dividend Equivalent Rights or interest equivalents shall automatically terminate upon the Grantee’s termination of Service for any reason. 
  

	14.	TERMS AND CONDITIONS OF PERFORMANCE SHARES, PERFORMANCE UNITS, PERFORMANCE AWARDS AND ANNUAL INCENTIVE AWARDS 

 14.1. Grant of Performance Units/Performance Shares. 
 Subject to the terms and provisions of this Plan, the Administrator, at any time and from time to time, may grant Performance Units and/or Performance Shares to Participants in such amounts and upon such terms as the
Committee shall determine. 
 14.2. Value of Performance Units/Performance Shares. 
 Each Performance Unit shall have an initial value that is established by the Administrator at the time of grant. The Administrator shall set performance
goals in its discretion which, depending on the extent to which they are met, will determine the value and/or number of Performance Units/Performance Shares that will be paid out to the Participant. 
 14.3. Earning of Performance Units/Performance Shares.
 Subject to the terms of this Plan, after the applicable Performance Period has ended, the holder of Performance Units/Performance Shares shall be entitled to receive payout on the value and number of Performance
Units/Performance Shares earned by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding performance goals have been achieved. 
 14.4. Form and Timing of Payment of Performance Units/Performance Shares. 
 Payment of earned Performance Units/Performance Shares shall be as determined by the Administrator and as evidenced in the Award Agreement. Subject to the
terms of this Plan, the Administrator, in its sole discretion, may pay earned Performance Units/Performance Shares in the form of cash or in shares (or in a combination thereof) equal to the value of the earned Performance Units/Performance Shares
at the close of the applicable Performance Period, or as soon as practicable after the end of the Performance 

  

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Period. Any Shares may be granted subject to any restrictions deemed appropriate by the Committee. The determination of the Committee with respect to the
form of payout of such Awards shall be set forth in the Award Agreement pertaining to the grant of the Award. 
 14.5. Performance
Conditions. 
 The right of a Grantee to exercise or receive a grant or settlement of any Award, and the timing thereof, may be subject to
such performance conditions as may be specified by the Administrator. The Administrator may use such business criteria and other measures of performance as it may deem appropriate in establishing any performance conditions. If and to the extent
required under Code Section 162(m), any power or authority relating to an Award intended to qualify under Code Section 162(m), shall be exercised by the Committee. 
 14.6. Performance Awards or Annual Incentive Awards Granted to Designated Covered Employees. 
 If and to the extent that the Administrator determines that an Award to be granted to a Grantee who is designated by the Committee as likely to be a
Covered Employee should qualify as “performance-based compensation” for purposes of Code Section 162(m), the grant, exercise and/or settlement of such Award shall be contingent upon achievement of pre-established performance goals and
other terms set forth in this Section 14.6. 
 14.6.1. Performance Goals Generally. 
 The performance goals for such Awards shall consist of one or more business criteria and a targeted level or levels of performance with respect to each of
such criteria, as specified by the Committee consistent with this Section 14.6. Performance goals shall be objective and shall otherwise meet the requirements of Code Section 162(m) and regulations thereunder including the
requirement that the level or levels of performance targeted by the Committee result in the achievement of performance goals being “substantially uncertain.” The Committee may determine that such Awards shall be granted, exercised and/or
settled upon achievement of any one performance goal or that two or more of the performance goals must be achieved as a condition to grant, exercise and/or settlement of such Awards. Performance goals may differ for Awards granted to any one Grantee
or to different Grantees. 
 14.6.2. Timing For Establishing Performance Goals. 
 Performance goals shall be established not later than the earlier of (i) 90 days after the beginning of any performance period applicable to such
Awards and (ii) the day on which 25% of any performance period applicable to such Awards has expired, or at such other date as may be required or permitted for “performance-based compensation” under Code Section 162(m).

 14.6.3. Settlement of Awards; Other Terms. 
 Settlement of such Awards shall be in cash, Stock, other Awards or other property, in the discretion of the Committee. The Committee may, in its discretion, reduce 

  

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the amount of a settlement otherwise to be made in connection with such Awards. The Committee shall specify the circumstances in which such Performance or
Annual Incentive Awards shall be paid or forfeited in the event of termination of Service by the Grantee prior to the end of a performance period or settlement of Awards. 
 14.6.4. Performance Measures.
 The performance goals upon which the payment or vesting of an Award to
a Covered Employee that is intended to qualify as Performance-Based Compensation shall be limited to the following Performance Measures: 
  

	 	(a)	net earnings; 

  

	 	(b)	operating earnings; 

  

	 	(c)	pretax earnings; 

  

	 	(d)	earnings (or loss) per share; 

  

	 	(e)	share price, including growth measures and total stockholder return and appreciation in and/or maintenance of the price of the shares of Stock or any publicly traded securities of
the Company; 

  

	 	(f)	earnings (or losses), including earnings or losses before taxes, earnings (or losses) before interest and taxes, earnings (or losses) before interest, taxes and depreciation,
earnings (or losses) before interest, taxes, depreciation and amortization, or earnings (or losses) before interest, taxes, depreciation, amortization and stock-based compensation, and other similar adjustments to earnings (or losses);

  

	 	(g)	sales or revenue, or sales or revenue growth, whether in general, by type of product or service, or by type of customer; 

  

	 	(h)	net income (or loss) before or after taxes and before or after allocation of corporate overhead and bonus; 

  

	 	(i)	operating income (or loss) before or after taxes; 

  

	 	(j)	gross, cash or operating margins; 

  

	 	(k)	gross profits; 

  

	 	(l)	return measures, including return on assets or net assets, capital (including total capital or invested capital), investment, equity, sales or net sales, or revenue;

  

	 	(m)	cash flow, including operating cash flow, free cash flow, cash flow return on equity, cash flow return on investment, and cash flow per share (before or after dividends);

  

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	 	(n)	economic value added models or equivalent metrics; 

  

	 	(o)	productivity ratios; 

  

	 	(p)	expense targets; 

  

	 	(q)	market share; 

  

	 	(r)	financial ratio targets or financial ratios as provided in credit agreements of the Company and its subsidiaries; 

  

	 	(s)	working capital targets; 

  

	 	(t)	year-end cash; 

  

	 	(u)	reductions in cost; 

  

	 	(v)	improvement in or attainment of expense levels or working capital levels; 

  

	 	(w)	shareholder equity; 

  

	 	(x)	implementation, completion or attainment of measurable objectives with respect to research, development, products or projects, recruiting and maintaining personnel, and strategic
and operational initiatives; 

  

	 	(y)	completion of acquisitions of business or companies; 

  

	 	(z)	completion of divestitures and asset sales; and 

  

	 	(aa)	any combination of any of the foregoing business criteria. 

 Any Performance Measure(s) may be used to measure the performance of the Company, Subsidiary, and/or Affiliate of the Company as a whole or any business unit of the Company, Subsidiary, and/or Affiliate of the Company or any combination
thereof, as the Committee may deem appropriate, or any of the above Performance Measures as compared to the performance of a group of comparator companies, or published or special index that the Committee, in its sole discretion, deems appropriate,
or the Company may select Performance Measure (f) above as compared to various stock market indices. The Committee also has the authority to provide for accelerated vesting of any Award based on the achievement of performance goals pursuant to
the Performance Measures specified in this Section 14. 
 14.6.5. Evaluation of Performance.
 The Committee may provide in any such Award that any evaluation of performance may include or exclude any of the following events that occur during a
Performance Period: (a) asset write-downs; (b) litigation or claim judgments or settlements; (c) the effect of changes in tax laws, accounting principles, or other laws or provisions 

  

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affecting reported results; (d) any reorganization and restructuring programs; (e) extraordinary nonrecurring items as described in Accounting
Principles Board Opinion No. 30 and/or in management’s discussion and analysis of financial condition and results of operations appearing in the Company’s annual report to shareholders for the applicable year; (f) acquisitions or
divestitures; and (g) foreign exchange gains and losses. To the extent such inclusions or exclusions affect Awards to Covered Employees, they shall be prescribed in a form that meets the requirements of Code Section 162(m) for
deductibility. 
 14.6.6. Adjustment of Performance-Based Compensation.
 Awards that are intended to qualify as Performance-Based Compensation may not be adjusted upward. The Administrator shall retain the discretion to adjust
such Awards downward, either on a formula or discretionary basis, or any combination as the Committee determines. 
 14.6.7. Administrator
Discretion.
 In the event that applicable tax and/or securities laws change to permit Administrator discretion to alter the governing
Performance Measures without obtaining shareholder approval of such changes, the Administrator shall have sole discretion to make such changes without obtaining shareholder approval provided the exercise of such discretion does not violate Code
Section 409A. In addition, in the event that the Committee determines that it is advisable to grant Awards that shall not qualify as Performance-Based Compensation, the Committee may make such grants without satisfying the requirements of Code
Section 162(m) and base vesting on Performance Measures other than those set forth in Section 14.6.4. 
 14.7. Status of
Section Awards Under Code Section 162(m). 
 It is the intent of the Company that Awards under Section 14.6 hereof
granted to persons who are designated by the Committee as likely to be Covered Employees within the meaning of Code Section 162(m) and regulations thereunder shall, if so designated by the Committee, constitute “qualified performance-based
compensation” within the meaning of Code Section 162(m) and regulations thereunder. Accordingly, the terms of Section 14.6, including the definitions of Covered Employee and other terms used therein, shall be interpreted in a
manner consistent with Code Section 162(m) and regulations thereunder. The foregoing notwithstanding, because the Committee cannot determine with certainty whether a given Grantee will be a Covered Employee with respect to a fiscal year that
has not yet been completed, the term Covered Employee as used herein shall mean only a person designated by the Committee, at the time of grant of an Award, as likely to be a Covered Employee with respect to that fiscal year. If any provision of the
Plan or any agreement relating to such Awards does not comply or is inconsistent with the requirements of Code Section 162(m) or regulations thereunder, such provision shall be construed or deemed amended to the extent necessary to conform to
such requirements. 
  

	15.	PARACHUTE LIMITATIONS 

 Notwithstanding any other
provision of this Plan or of any other agreement, contract, or understanding heretofore or hereafter entered into by a Grantee with the Company or any 

  

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Affiliate of the Company, except an agreement, contract, or understanding that expressly addresses Section 280G or Section 4999 of the Code (an
“Other Agreement”), and notwithstanding any formal or informal plan or other arrangement for the direct or indirect provision of compensation to the Grantee (including groups or classes of Grantees or beneficiaries of which the Grantee is
a member), whether or not such compensation is deferred, is in cash, or is in the form of a benefit to or for the Grantee (a “Benefit Arrangement”), if the Grantee is a “disqualified individual,” as defined in
Section 280G(c) of the Code, any Option, Restricted Stock, Restricted Stock Unit, Performance Share or Performance Unit held by that Grantee and any right to receive any payment or other benefit under this Plan shall not become exercisable or
vested (i) to the extent that such right to exercise, vesting, payment, or benefit, taking into account all other rights, payments, or benefits to or for the Grantee under this Plan, all Other Agreements, and all Benefit Arrangements, would
cause any payment or benefit to the Grantee under this Plan to be considered a “parachute payment” within the meaning of Section 280G(b)(2) of the Code as then in effect (a “Parachute Payment”) and (ii) if, as a
result of receiving a Parachute Payment, the aggregate after-tax amounts received by the Grantee from the Company under this Plan, all Other Agreements, and all Benefit Arrangements would be less than the maximum after-tax amount that could be
received by the Grantee without causing any such payment or benefit to be considered a Parachute Payment. In the event that the receipt of any such right to exercise, vesting, payment, or benefit under this Plan, in conjunction with all other
rights, payments, or benefits to or for the Grantee under any Other Agreement or any Benefit Arrangement would cause the Grantee to be considered to have received a Parachute Payment under this Plan that would have the effect of decreasing the
after-tax amount received by the Grantee as described in clause (ii) of the preceding sentence, then the Grantee shall have the right, in the Grantee’s sole discretion, to designate those rights, payments, or benefits under this Plan, any
Other Agreements, and any Benefit Arrangements that should be reduced or eliminated so as to avoid having the payment or benefit to the Grantee under this Plan be deemed to be a Parachute Payment; provided, however, that in order to comply with Code
Section 409A, the reduction or elimination will be performed in the order in which each dollar of value subject to an award reduces the Parachute Payment to the greatest extent. 
  

	16.	REQUIREMENTS OF LAW 

 16.1. General.

 The Company shall not be required to sell or issue any shares of Stock under any Award if the sale or issuance of such shares would
constitute a violation by the Grantee, any other individual exercising an Option, or the Company of any provision of any law or regulation of any governmental authority, including without limitation any federal or state securities laws or
regulations. If at any time the Company shall determine, in its discretion, that the listing, registration or qualification of any shares subject to an Award upon any securities exchange or under any governmental regulatory body is necessary or
desirable as a condition of, or in connection with, the issuance or purchase of shares hereunder, no shares of Stock may be issued or sold to the Grantee or any other individual exercising an Option pursuant to such Award unless such listing,
registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Company, and any delay caused thereby shall in no way affect the date of termination of the Award. 

  

 - 24 - 

 
Without limiting the generality of the foregoing, in connection with the Securities Act, upon the exercise of any Option or any SAR that may be settled in
shares of Stock or the delivery of any shares of Stock underlying an Award, unless a registration statement under such Act is in effect with respect to the shares of Stock covered by such Award, the Company shall not be required to sell or issue
such shares unless the Administrator has received evidence satisfactory to it that the Grantee or any other individual exercising an Option may acquire such shares pursuant to an exemption from registration under the Securities Act. Any
determination in this connection by the Administrator shall be final, binding, and conclusive. The Company may, but shall in no event be obligated to, register any securities covered hereby pursuant to the Securities Act. The Company shall not be
obligated to take any affirmative action in order to cause the exercise of an Option or a SAR or the issuance of shares of Stock pursuant to the Plan to comply with any law or regulation of any governmental authority. As to any jurisdiction that
expressly imposes the requirement that an Option (or SAR that may be settled in shares of Stock) shall not be exercisable until the shares of Stock covered by such Option (or SAR) are registered or are exempt from registration, the exercise of such
Option (or SAR) under circumstances in which the laws of such jurisdiction apply shall be deemed conditioned upon the effectiveness of such registration or the availability of such an exemption. 
 16.2. Rule 16b-3. 
 During any time
when the Company has a class of equity security registered under Section 12 of the Exchange Act, it is the intent of the Company that Awards pursuant to the Plan and the exercise of Options and SARs granted hereunder will qualify for the
exemption provided by Rule 16b-3 under the Exchange Act. To the extent that any provision of the Plan or action by the Administrator does not comply with applicable requirements of Rule 16b-3, it shall be deemed inoperative to the extent permitted
by law and deemed advisable by the Administrator, and shall not affect the validity of the Plan. In the event that Rule 16b-3 is revised or replaced, the Administrator may exercise its discretion to modify this Plan in any respect necessary to
satisfy the requirements of, or to take advantage of any features of, the revised exemption or its replacement. 
  

	17.	EFFECT OF CHANGES IN CAPITALIZATION 

 17.1.
Changes in Stock. 
 If the number of outstanding shares of Stock is increased or decreased or the shares of Stock are changed into or
exchanged for a different number or kind of shares or other securities of the Company on account of any recapitalization, reclassification, stock split, reverse split, combination of shares, exchange of shares, stock dividend or other distribution
payable in capital stock, or other increase or decrease in such shares effected without receipt of consideration by the Company occurring after the Effective Date, the number and kinds of shares for which grants of Options and other Awards may be
made under the Plan, including, without limitation, the limits set forth in Section 6.3, shall be adjusted proportionately and accordingly by the Company. In addition, the number and kind of shares for which Awards are outstanding shall
be adjusted proportionately and accordingly so that the proportionate interest of the Grantee immediately following such event shall, to the extent practicable, be the same as immediately before such event. Any such adjustment in outstanding Options
or SARs shall not change the aggregate Option Price or SAR Exercise Price payable with 

  

 - 25 - 

 
respect to shares that are subject to the unexercised portion of an outstanding Option or SAR, as applicable, but shall include a corresponding proportionate
adjustment in the Option Price or SAR Exercise Price per share. The conversion of any convertible securities of the Company shall not be treated as an increase in shares effected without receipt of consideration. Notwithstanding the foregoing, in
the event of any distribution to the Company’s stockholders of securities of any other entity or other assets (including an extraordinary dividend but excluding a non-extraordinary dividend of the Company) without receipt of consideration by
the Company, the Company shall, in such manner as the Company deems appropriate, adjust (i) the number and kind of shares subject to outstanding Awards and/or (ii) the exercise price of outstanding Options and Stock Appreciation Rights to
reflect such distribution. 
 17.2. Reorganization in Which the Company Is the Surviving Entity Which does not Constitute a Corporate
Transaction. 
 Subject to Section 17.3 hereof, if the Company shall be the surviving entity in any reorganization, merger, or
consolidation of the Company with one or more other entities which does not constitute a Corporate Transaction, any Option or SAR theretofore granted pursuant to the Plan shall pertain to and apply to the securities to which a holder of the number
of shares of Stock subject to such Option or SAR would have been entitled immediately following such reorganization, merger, or consolidation, with a corresponding proportionate adjustment of the Option Price or SAR Exercise Price per share so that
the aggregate Option Price or SAR Exercise Price thereafter shall be the same as the aggregate Option Price or SAR Exercise Price of the shares remaining subject to the Option or SAR immediately prior to such reorganization, merger, or
consolidation. Subject to any contrary language in an Award Agreement evidencing an Award, any restrictions applicable to such Award shall apply as well to any replacement shares received by the Grantee as a result of the reorganization, merger or
consolidation. In the event of a transaction described in this Section 17.2, Restricted Stock Units shall be adjusted so as to apply to the securities that a holder of the number of shares of Stock subject to the Restricted Stock Units would
have been entitled to receive immediately following such transaction. 
 17.3. Corporate Transaction in which Awards are not Assumed. 

 Upon the occurrence of a Corporate Transaction in which outstanding Options, SARs, Restricted Stock Units and Restricted Stock are not
being assumed or continued: 
 (i) all outstanding shares of Restricted Stock shall be deemed to have vested, and all
Restricted Stock Units shall be deemed to have vested and the shares of Stock subject thereto shall be delivered, immediately prior to the occurrence of such Corporate Transaction, and 
 (ii) either of the following two actions shall be taken: 
 (A) fifteen days prior to the scheduled consummation of a Corporate Transaction, all Options and SARs outstanding hereunder shall become
immediately exercisable and shall remain exercisable for a period of fifteen days, or 
  

 - 26 - 

 (B) the Administrator may elect, in its sole discretion, to cancel any outstanding Awards
of Options, Restricted Stock, Restricted Stock Units, and/or SARs and pay or deliver, or cause to be paid or delivered, to the holder thereof an amount in cash or securities having a value (as determined by the Administrator acting in good faith),
in the case of Restricted Stock or Restricted Stock Units, equal to the formula or fixed price per share paid to holders of shares of Stock and, in the case of Options or SARs, equal to the product of the number of shares of Stock subject to the
Option or SAR (the “Award Shares”) multiplied by the amount, if any, by which (I) the formula or fixed price per share paid to holders of shares of Stock pursuant to such transaction exceeds (II) the Option Price or SAR Exercise Price
applicable to such Award Shares. 
 With respect to the Company’s establishment of an exercise window, (i) any exercise of an
Option or SAR during such fifteen-day period shall be conditioned upon the consummation of the event and shall be effective only immediately before the consummation of the event, and (ii) upon consummation of any Corporate Transaction, the Plan
and all outstanding but unexercised Options and SARs shall terminate. The Administrator shall send notice of an event that will result in such a termination to all individuals who hold Options and SARs not later than the time at which the Company
gives notice thereof to its stockholders. 
 17.4. Corporation Transaction in which Awards are Assumed. 
 The Plan, Options, SARs, Restricted Stock Units and Restricted Stock theretofore granted shall continue in the manner and under the terms so provided in
the event of any Corporate Transaction to the extent that provision is made in writing in connection with such Corporate Transaction for the assumption or continuation of the Options, SARs, Restricted Stock Units and Restricted Stock theretofore
granted, or for the substitution for such Options, SARs, Restricted Stock Units and Restricted Stock for new common stock options and stock appreciation rights and new common stock units and restricted stock relating to the stock of a successor
entity, or a parent or subsidiary thereof, with appropriate adjustments as to the number of shares (disregarding any consideration that is not common stock) and option and stock appreciation right exercise prices. 
 17.5. Adjustments 
 Adjustments under
this Section 17 related to shares of Stock or securities of the Company shall be made by the Administrator, whose determination in that respect shall be final, binding and conclusive. No fractional shares or other securities shall be
issued pursuant to any such adjustment, and any fractions resulting from any such adjustment shall be eliminated in each case by rounding downward to the nearest whole share. The Administrator shall determine the effect of a Corporate Transaction
upon Awards other than Options, SARs, Restricted Stock Units and Restricted Stock, and such effect shall be set forth in the appropriate Award Agreement. The Administrator may provide in the Award Agreements at the time of grant, or any time
thereafter with the consent of the Grantee, for different provisions to apply to an Award in place of those described in Sections 17.1, 17.2, 17.3 and 17.4. This Section 17 does not limit the Company’s
ability to provide for 

  

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alternative treatment of Awards outstanding under the Plan in the event of change of control events that are not Corporate Transactions. 
 17.6. No Limitations on Company 
 The
making of Awards pursuant to the Plan shall not affect or limit in any way the right or power of the Company to make adjustments, reclassifications, reorganizations, or changes of its capital or business structure or to merge, consolidate, dissolve,
or liquidate, or to sell or transfer all or any part of its business or assets. 
  

	18.	GENERAL PROVISIONS 

 18.1. Disclaimer of Rights

 No provision in the Plan or in any Award or Award Agreement shall be construed to confer upon any individual the right to remain in the
employ or service of the Company or any Affiliate of the Company, or to interfere in any way with any contractual or other right or authority of the Company either to increase or decrease the compensation or other payments to any individual at any
time, or to terminate any employment or other relationship between any individual and the Company. In addition, notwithstanding anything contained in the Plan to the contrary, unless otherwise stated in the applicable Award Agreement, no Award
granted under the Plan shall be affected by any change of duties or position of the Grantee, so long as such Grantee continues to be a director, officer, consultant or employee of the Company or an Affiliate of the Company. The obligation of the
Company to pay any benefits pursuant to this Plan shall be interpreted as a contractual obligation to pay only those amounts described herein, in the manner and under the conditions prescribed herein. The Plan shall in no way be interpreted to
require the Company to transfer any amounts to a third party trustee or otherwise hold any amounts in trust or escrow for payment to any Grantee or beneficiary under the terms of the Plan. 
 18.2. Nonexclusivity of the Plan 
 Neither the adoption of the Plan nor the submission of the Plan to the stockholders of the Company for approval shall be construed as creating any limitations upon the right and authority of the Administrator to adopt such other incentive
compensation arrangements (which arrangements may be applicable either generally to a class or classes of individuals or specifically to a particular individual or particular individuals) as the Administrator in its discretion determines desirable,
including, without limitation, the granting of stock options otherwise than under the Plan. 
 18.3. Withholding Taxes 
 The Company or an Affiliate of the Company, as the case may be, shall have the right to deduct from payments of any kind otherwise due to a Grantee any
federal, state, or local taxes of any kind required by law to be withheld with respect to the vesting of or other lapse of restrictions applicable to an Award or upon the issuance of any shares of Stock upon the exercise of an Option or pursuant to
an Award. At the time of such vesting, lapse, or exercise, the Grantee shall pay to the Company or such Affiliate, as the case may be, any amount that the Company or such Affiliate may reasonably determine to be necessary to 

  

 - 28 - 

 
satisfy such withholding obligation. Subject to the prior approval of the Company or such Affiliate, which may be withheld by the Company or such Affiliate,
as the case may be, in its sole discretion, the Grantee may elect to satisfy such obligations, in whole or in part, (i) by causing the Company or such Affiliate to withhold shares of Stock otherwise issuable to the Grantee or (ii) by
delivering to the Company or such Affiliate shares of Stock already owned by the Grantee. The shares of Stock so delivered or withheld shall have an aggregate Fair Market Value equal to such withholding obligations. The Fair Market Value of the
shares of Stock used to satisfy such withholding obligation shall be determined by the Company or such Affiliate as of the date that the amount of tax to be withheld is to be determined. A Grantee who has made an election pursuant to this
Section 18.3 may satisfy his or her withholding obligation only with shares of Stock that are not subject to any repurchase, forfeiture, unfulfilled vesting, or other similar requirements. The maximum number of shares of Stock that may
be withheld from any Award to satisfy any federal, state or local tax withholding requirements upon the exercise, vesting, lapse of restrictions applicable to such Award or payment of shares pursuant to such Award, as applicable, cannot exceed such
number of shares having a Fair Market Value equal to the minimum statutory amount required by the Company to be withheld and paid to any such federal, state or local taxing authority with respect to such exercise, vesting, lapse of restrictions or
payment of shares. 
 18.4. Captions 
 The use of captions in this Plan or any Award Agreement is for the convenience of reference only and shall not affect the meaning of any provision of the Plan or such Award Agreement. 
 18.5. Other Provisions 
 Each Award
granted under the Plan may contain such other terms and conditions not inconsistent with the Plan as may be determined by the Administrator, in its sole discretion. 
 18.6. Number and Gender 
 With respect to words used in this Plan, the singular form shall include the
plural form, the masculine gender shall include the feminine gender, etc., as the context requires. 
 18.7. Severability 

If any provision of the Plan or any Award Agreement shall be determined to be illegal or unenforceable by any court of law in any jurisdiction, the
remaining provisions hereof and thereof shall be severable and enforceable in accordance with their terms, and all provisions shall remain enforceable in any other jurisdiction. 
 18.8. Governing Law 
 The validity and
construction of this Plan and the instruments evidencing the Awards hereunder shall be governed by the laws of the State of Delaware, other than any conflicts or choice of law rule or principle that might otherwise refer construction or
interpretation of this Plan and the instruments evidencing the Awards granted hereunder to the substantive laws of any other jurisdiction. 
  

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 18.9. Code Section 409A 
 The Administrator intends to comply with Code Section 409A of the Code, or an exemption to Code Section 409A, with regard to Awards hereunder
that constitute nonqualified deferred compensation within the meaning of Code Section 409A. To the extent that the Administrator determines that a Grantee would be subject to the additional 20% tax imposed on certain nonqualified deferred
compensation plans pursuant to Code Section 409A as a result of any provision of any Award granted under this Plan, such provision shall be deemed amended to the minimum extent necessary to avoid application of such additional tax. The nature
of any such amendment shall be determined by the Administrator. 
 *    *    * 
  

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 To record adoption of the Plan by the Board and Compensation Committee as of April 7, 2008, and
approval of the Plan by the stockholders on June 11, 2008, the Company has caused its authorized officer to execute the Plan. 
  

			
	EDGEWATER TECHNOLOGY, INC.
		
	By:	 	/s/ Kevin R. Rhodes
	Title:	 	Chief Financial Officer (Duly Authorized Officer)

  

 - 31 -REGISTRANT'S 2008 EMPLOYEE STOCK PURCHASE PLAN

 Exhibit 10.1 
 EDGEWATER TECHNOLOGY, INC. 
 2008 EMPLOYEE STOCK PURCHASE PLAN 
 ARTICLE I. INTRODUCTION 
 Sec.
1.01 Statement of Purpose. The purpose of the Edgewater Technology, Inc. Employee Stock Purchase Plan is to provide eligible employees of the Company and its subsidiaries, who wish to become stockholders, an opportunity to purchase common
stock of the Company. The Board of Directors of the Company believes that employee participation in stock ownership will be to the mutual benefit of the employees and the Company. 
 Sec. 1.02 Internal Revenue Code Considerations. The Plan is intended to constitute an “employee stock purchase plan” within the
meaning of section 423 of the Internal Revenue Code of 1986, as amended. The Plan shall be submitted to the Company’s stockholders for approval within 12 months after the Plan is adopted by the Board of Directors. 
 Sec. 1.03 ERISA Considerations. The Plan is not intended and shall not be construed as constituting an “employee benefit plan,”
within the meaning of section 3(3) of the Employee Retirement Income Security Act of 1974, as amended. 
 ARTICLE II. DEFINITIONS

 Sec. 2.01 “Board of Directors” means the board of directors of the Company or a committee of the board of
directors authorized to act on its behalf. 
 Sec. 2.02 “Code” means the Internal Revenue Code of 1986, as amended,
and any successor statute of similar nature. References to specific sections of the Code shall be taken to be references to corresponding sections of any successor statute. 
 Sec. 2.03 “Committee” means the committee appointed by the Board of Directors to administer the Plan, as provided in
Section 6.03 hereof. 
 Sec. 2.04 “Company” means Edgewater Technology, Inc., a Delaware corporation.

 Sec. 2.05 “Effective Date” means October 1, 2008. 
 Sec. 2.06 “Election Date” means each January 1 and July 1 or such other dates as the Committee shall specify.

 Sec. 2.07 “Eligible Employee” means each person employed as an employee of an Employer who is not deemed for
purposes of section 423(b)(3) of the Code to own stock possessing five percent or more of the total combined voting power or value of all classes of stock of the Company or any Subsidiary. 
  

 A-1 

 Sec. 2.08 “Employer” means the Company and each Subsidiary. 
 Sec. 2.09 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and as the same may hereafter be amended.

 Sec. 2.10 “Market Value” means the last price for the Stock as reported on the Nasdaq National Market for the date
of reference. If there was no such price reported for the date of reference, “Market Value” means the “Market Value” as of the date next preceding the date of reference for which such price was reported. 
 Sec. 2.11 “Participant” means each Eligible Employee who elects to participate in the Plan. 
 Sec. 2.12 “Plan” means the Edgewater Technology, Inc. 2008 Employee Stock Purchase Plan, as the same is set forth herein and as
the same may hereafter be amended. 
 Sec. 2.13 “Purchase Agreement” means the instrument prescribed by the Committee
pursuant to which an Eligible Employee may enroll as a Participant and subscribe for the purchase of shares of Stock on the terms and conditions offered by the Company. The Purchase Agreement also is intended to evidence the Company’s offer of
an option to the Eligible Employee to purchase Stock on the terms and conditions set forth therein and herein. 
 Sec. 2.14
“Purchase Date” means January 1, 2009 and the last day of each Purchase Period ending thereafter. 
 Sec. 2.15
“Purchase Period” means, beginning October 1, 2008, each calendar quarter or other period specified by the Board of Directors during which the Participant’s stock purchase is funded through payroll deduction
accumulations. 
 Sec. 2.16 “Stock” means the common stock of the Company. 
 Sec. 2.17 “Subsidiary” means any present or future corporation (i) which constitutes a “subsidiary corporation” of
the Company as that term is defined in section 424 of the Code, and (ii) is designated as a participating entity in the Plan by the Committee. Unless the Committee specifically designates otherwise, a Canadian or other foreign subsidiary shall
not be considered a Subsidiary for purposes of the Plan, and employees of such a subsidiary shall not be Eligible Employees. 
 ARTICLE
III. ADMISSION TO PARTICIPATION 
 Sec. 3.01 Initial Participation. Any Eligible Employee may elect to be participate in
the Plan and may become a Participant by executing and filing with the Committee a Purchase Agreement at such time in advance of the effective date of the election as the Committee shall prescribe. An Eligible Employee’s initial election to
participate in the Plan may be made at any time after he or she first becomes eligible to participate in the Plan and shall be effective as soon as practicable after the Eligible Employee submits the necessary documentation to the Committee. After
an Eligible Employee has first become a Participant in the Plan, subsequent 

  

 A-2 

 
elections to participate in the Plan shall be made pursuant to Section 3.03. A Participant’s Purchase Agreement shall remain in effect until
modified or canceled in accordance with the further terms of this Plan, as hereinafter set forth. 
 Sec. 3.02 Discontinuance of
Participation. A Participant may voluntarily cease his or her participation in the Plan and stop payroll deductions at any time by filing a notice of cessation of participation on such form and at such time in advance of the effective date
as the Committee shall prescribe. Notwithstanding anything in the Plan to the contrary, if a Participant ceases to be an Eligible Employee, his or her participation automatically shall cease and no further purchase of Stock shall be made for such
Participant hereunder. 
 Sec. 3.03 Readmission to Participation. Any Eligible Employee who has previously been a Participant,
who has discontinued participation (whether by cessation of eligibility or otherwise), and who wishes to be reinstated as a Participant may again become a Participant by executing and filing with the Committee a new Purchase Agreement. Reinstatement
to Participant status shall be effective as of any Election Date, provided the Participant files such new Purchase Agreement with the Committee at such time in advance of such Election Date as the Committee shall prescribe. 
 ARTICLE IV. STOCK PURCHASE AND RESALE 
 Sec. 4.01 Reservation of Shares. There shall be 500,000 shares of Stock reserved for issuance under the Plan, plus any shares of Stock that were authorized for issuance under the Company’s prior Employee Stock Purchase
Plan (which terminates after the end of the purchase period ending September 30, 2008) and were not issued under that Plan, subject to adjustment in accordance with the antidilution provisions hereinafter set forth. Except as provided in
Section 5.02 hereof, the aggregate number of shares of Stock that may be purchased under the Plan shall not exceed the number of shares of Stock reserved for the Plan. 
 Sec. 4.02 Limitation on Shares Available. 
 (a) Subject to the limitations of Section 4.04, the maximum number of shares of Stock that may be purchased for each Participant on a Purchase Date is the lesser of (a) the number of whole and fractional
shares of Stock that can be purchased by applying the full balance of the Participant’s withheld funds to the purchase of shares of Stock at the Purchase Price, or (b) the Participant’s proportionate part of the maximum number of
shares of Stock available under the Plan, as stated in Section 5.01. 
 (b) Notwithstanding the foregoing, if any person entitled to
purchase shares pursuant to any offering under the Plan would be deemed for purposes of section 423(b)(3) of the Code to own stock (including any number of shares of Stock that such person would be entitled to purchase under the Plan) possessing
five percent or more of the total combined voting power or value of all classes of stock of Company, the maximum number of shares of Stock that such person shall be entitled to purchase pursuant to the Plan shall be reduced to that number which,
when added to the number of shares of stock that such person is deemed to own (excluding any number of shares of Stock that such person would be entitled to purchase under the Plan), is one 

  

 A-3 

 
less than such five percent. Any amounts withheld from a Participant’s compensation that cannot be applied to the purchase of Stock by reason of the
foregoing limitation shall be returned to the Participant as soon as practicable. 
 Sec. 4.03 Purchase Price of Shares. The
Purchase Price per share of the Stock sold to Participants pursuant to any offering hereunder shall be the lower of (i) 85% of the Market Value per share on the first day of the Purchase Period or (ii) 85% of the Market Value per share on
the Purchase Date. Notwithstanding the foregoing, the Board of Directors may determine that the Purchase Price shall be the Market Value, or a percentage of the Market Value on either of such dates or the lower of such dates, so long as such
percentage shall not be lower than 85% of such Market Value. 
 Sec. 4.04 Exercise of Purchase Privilege. 
 (a) Each Participant shall be granted an option to purchase shares of Stock as of the first day of each Purchase Period at the Purchase Price specified in
Section 4.03. The option shall continue in effect through the Purchase Date for the Purchase Period. Subject to the provisions of Section 4.02 above and Sections 4.04(b) and 4.04(d) below, on each Purchase Date, the Participant shall be
automatically deemed to have exercised his or her option to purchase shares of Stock on the Purchase Date, unless he or she notifies the Committee, in such manner and at such time in advance of the Purchase Date as the Committee shall prescribe, of
his or her desire not to make such purchase. 
 (b) The maximum number of shares which a Participant may purchase during a Purchase Period is
4,000 shares, adjusted as described in Section 5.02 and subject to Section 4.04(d) below, or such other number as the Committee establishes before the beginning of the Purchase Period. 
 (c) There shall be purchased for the Participant on such Purchase Date at the Purchase Price for such Purchase Period the largest number of whole and
fractional shares of Stock as can be purchased with the amounts withheld from the Participant’s compensation during the Purchase Period. Each such purchase shall be deemed to have occurred on the Purchase Date occurring at the close of the
Purchase Period for which the purchase was made. 
 (d) Notwithstanding the foregoing, a Participant may not purchase shares of Stock having
an aggregate Market Value of more than $25,000, determined at the beginning of each Purchase Period, for any calendar year in which one or more such offerings are outstanding at any time, and a Participant may not purchase a share of Stock under any
offering after the expiration of the Purchase Period for such offering. 
 Sec. 4.05 Payroll Deductions. Each Participant shall
authorize payroll deductions from his or her compensation for the purpose of funding the purchase of Stock pursuant to his or her Purchase Agreement. In the Purchase Agreement, each Participant shall authorize an after-tax payroll deduction from
each payment of his compensation during a Purchase Period, of an amount not less than $10 per paycheck ($20 for any Participant on a monthly payroll period) and not more than 10% of such Participant’s compensation. A Participant may change the
deduction to any permissible level effective as of any Election Date. Such change shall be made by the 

  

 A-4 

 
Participant’s filing with the Committee a notice in such form and at such time in advance of the date on which such change is to be effective as the
Committee shall prescribe. 
 Sec. 4.06 Payment for Stock. The Purchase Price for all shares of Stock purchased by a
Participant under the Plan shall be paid out of the Participant’s authorized payroll deductions. All funds received or held by the Company under the Plan are general assets of the Company, free of any trust or other restriction, and may be used
for any corporate purpose. 
 Sec. 4.07 Share Ownership; Issuance of Certificates. 
 (a) The shares of Stock purchased by a Participant on a Purchase Date shall, for all purposes, be deemed to have been issued or sold at the close of
business on such Purchase Date. Prior to that time, none of the rights or privileges of a stockholder of the Company shall inure to the Participant with respect to such shares of Stock. All the shares of Stock purchased under the Plan shall be
delivered by the Company in a manner as determined by the Committee. 
 (b) The Committee, in its sole discretion, may determine that the
shares of Stock shall be delivered by the Company by (i) issuing and delivering to the Participant a certificate for the number of shares of Stock purchased by such Participant on a Purchase Date or during a calendar year or other period
determined by the Committee, (ii) issuing and delivering a certificate or certificates for the number of shares of Stock purchased by all Participants on a Purchase Date or during a calendar year or other period determined by the Committee to a
firm which is a member of the National Association of Securities Dealers, as selected by the Committee from time to time, which shares shall be maintained by such firm in separate brokerage accounts of each Participant, or (iii) issuing and
delivering a certificate or certificates for the number of shares of Stock purchased by all Participants on a Purchase Date or during the calendar year or other period determined by the Committee to a bank or trust company or affiliate thereof, as
selected by the Committee from time to time, which shares may be held by such bank or trust company or affiliate in “street name”, but with separate accounts maintained by such entity for each Participant reflecting such Participant’s
whole share interests in the Stock. Each certificate or account, as the case may be, may be in the name of the Participant or, if he or she designates on the Participant’s Purchase Agreement, in the Participant’s name jointly with the
Participant’s spouse, with right of survivorship. A Participant who is a resident of a jurisdiction that does not recognize such joint tenancy may have a certificate or account in the Participant’s name as tenant in common with the
Participant’s spouse, without right of survivorship. Such designation may be changed by filing notice thereof. 
 (c) In addition to any
restrictions or limitations on the resale of Stock purchased under the Plan set forth in Section 4.08 hereof or otherwise hereunder, the Committee, in its sole discretion, may impose such restrictions or limitations, as it shall determine, on
the resale of Stock, the issuance of individual stock certificates or withdrawal from any stockholder accounts established for a Participant pursuant to the terms hereof. 
 (d) Any dividends payable with respect to whole or fractional shares of Stock credited to a stockholder account of a Participant established pursuant to Section 4.07(b) hereof will be reinvested in shares of
Stock and credited to such Participant’s account. Such 

  

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reinvestment shall be made based on the Market Value of the Stock at the date of the reinvestment, with no discount from Market Value. 
 Sec. 4.08 Withdrawal of Shares or Resale of Stock. 
 (a) The Participant may request a withdrawal of those shares or order the sale of those shares at any time by making a request in such form and at such time as the Committee shall prescribe. 
 (b) In the event a Participant terminates his or her employment with all Employers or otherwise ceases to be an Eligible Employee, he or she shall
receive a distribution of his or her shares of Stock held in any stockholder account established pursuant to Section 4.07(b), he or she may elect to have such shares of Stock sold in accordance with such procedures as the Committee shall
prescribe. 
 (c) If a Participant is to receive a withdrawal or distribution of shares of Stock, the withdrawal or distribution shall be
paid in whole shares of Stock, with fractional shares paid in cash. 
 ARTICLE V. SPECIAL ADJUSTMENTS 
 Sec. 5.01 Shares Unavailable. If, on any Purchase Date, the aggregate funds available for the purchase of Stock would purchase a number of
shares in excess of the number of shares of Stock then available for purchase under the Plan, the following events shall occur: 
 (a) The
number of shares of Stock that would otherwise be purchased by each Participant shall be proportionately reduced on the Purchase Date in order to eliminate such excess; and 
 (b) The Plan shall automatically terminate immediately after the Purchase Date as of which the supply of available shares is exhausted. 
 Sec. 5.02 Anti-Dilution Provisions. The aggregate number of shares of Stock reserved for purchase under the Plan, as hereinabove provided,
and the calculation of the Purchase Price per share may be appropriately adjusted to reflect any increase or decrease in the number of issued shares of Stock resulting from a subdivision or consolidation of shares or other capital adjustment, or the
payment of a stock dividend, or other increase or decrease in such shares, if effected without receipt of consideration by the Company. Any such adjustment shall be made by the Committee acting with the consent of, and subject to the approval of,
the Board of Directors. 
 Sec. 5.03 Effect of Certain Transactions. Subject to any required action by the
stockholders, if the Company shall be the surviving or resulting corporation in any merger or consolidation, any offering hereunder shall pertain to and apply to the shares of stock of the Company. However, in the event of a dissolution or
liquidation of the Company, or of a merger or consolidation in which the Company is not the surviving or resulting corporation, [the Plan 

  

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and any offering hereunder shall terminate upon the effective date of such dissolution, liquidation, merger or consolidation,] and the balance of any
amounts withheld from the Participant’s compensation, which had not by such time been applied to the purchase of stock shall be returned to the Participant. 
 ARTICLE VI. MISCELLANEOUS 
 Sec. 6.01 Non-Alienation. The right to purchase shares of
Stock under the Plan is personal to the Participant, is exercisable only by the Participant during the Participant’s lifetime except as hereinafter set forth, and may not be assigned or otherwise transferred by the Participant. Notwithstanding
the foregoing, there shall be delivered to the executor, administrator or other personal representative of a deceased Participant such shares of Stock and such residual amounts as may remain to the Participant’s credit from amounts withheld
from the Participant’s compensation as of the Purchase Date occurring at the close of the period in which the Participant’s death occurs, including shares of Stock purchased as of that date or prior thereto with moneys withheld from the
Participant’s compensation. 
 Sec. 6.02 Administrative Costs. The Company shall pay all administrative expenses
associated with the operation of the Plan. 
 Sec. 6.03 The Committee. The Board of Directors shall appoint a Committee, which
shall have the authority and power to administer the Plan and to make, adopt, construe, and enforce rules and regulations not inconsistent with the provisions of the Plan. The Committee shall adopt and prescribe the contents of all forms required in
connection with the administration of the Plan, including, but not limited to, the Purchase Agreement, payroll withholding authorizations, withdrawal documents, and all other notices required hereunder. The Committee shall have the fullest
discretion permissible under law in the discharge of its duties. The Committee’s interpretations and decisions in respect of the Plan, the rules and regulations pursuant to which it is operated, and the rights of Participants hereunder shall be
final and conclusive. 
 Sec. 6.04 Withholding of Taxes. All acquisitions of Stock under the Plan shall be subject to
applicable federal, state and local tax withholding requirements if the Internal Revenue Service or other taxing authority requires such withholding. The Company may require that Participants pay to the Company (or make other arrangements
satisfactory to the Company for the payment of) the amount of any federal, state or local taxes that the Company is required to withhold with respect to the purchase of Stock or the sale of Stock acquired under the Plan, or the Company may deduct
from the Participant’s wages or other compensation the amount of any withholding taxes dues with respect to the purchase of Stock or the sale of Stock acquired under the Plan. 
 Sec. 6.05 Amendment of the Plan. The Board of Directors (or its delegate) may amend or terminate the Plan at any time; provided, however,
that the Board of Directors (or its delegate) shall not amend the Plan without stockholder approval if such approval is required by section 423 of the Code. 
  

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 Sec. 6.06 Expiration and Termination of the Plan. The Plan shall continue in effect for 10
years from the Effective Date, unless terminated prior thereto pursuant to the provisions of the Plan or pursuant to action by the Board of Directors, which shall have the right to terminate the Plan at any time without prior notice to any
Participant and without liability to any Participant. Upon the expiration or termination of the Plan, the balance, if any, then standing to the credit of each Participant from amounts withheld from the Participant’s compensation which had not,
by such time, been applied to the purchase of Stock shall be refunded to the Participant. 
 Sec. 6.07 Repurchase of Stock. The
Company shall not be required to purchase or repurchase from any Participant any of the shares of Stock that the Participant acquired under the Plan. 
 Sec. 6.08 Notice. A Purchase Agreement and any notice that a Participant files pursuant to the Plan shall be on the form prescribed by the Committee and shall be effective only when received by the
Committee. Delivery of such forms may he made by hand or by certified mail, sent postage prepaid, to Edgewater Technology, 20 Harvard Mill Square, Wakefield, MA 01880-3260, Attention: Employee Stock Purchase Plan Administrator. Delivery by any other
mechanism shall be deemed effective at the option and discretion of the Committee. 
 Sec. 6.09 Government Regulation. The
Company’s obligation to sell and to deliver the Stock under the Plan is at all times subject to all approvals of any governmental authority required in connection with the authorization, issuance, sale or delivery of such Stock. 
 Sec. 6.10 Headings, Captions, Gender. The headings and captions herein are for convenience of reference only and shall not be considered as
part of the text. The masculine shall include the feminine, and vice versa. 
 Sec. 6.11 Severability of Provisions, Prevailing
Law. The provisions of the Plan shall be deemed severable. In the event any such provision is determined to be unlawful or unenforceable by a court of competent jurisdiction or by reason of a change in an applicable statute, the Plan shall
continue to exist as though such provision had never been included therein (or, in the case of a change in an applicable statute, had been deleted as of the date of such change). The Plan shall be governed by the laws of the State of Delaware to the
extent such laws are not in conflict with, or superseded by, federal law. 
 To record adoption of the Plan by the Board and Compensation
Committee as of April 7, 2008, and approval of the Plan by the stockholders on June 11, 2008, the Company has caused its authorized officer to execute the Plan. 
  

			
	EDGEWATER TECHNOLOGY, INC.
		
	By:	 	/s/ Kevin R. Rhodes
	Title:	 	Chief Financial Officer (Duly Authorized Officer)

  

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