Document:

EX-10.1

 

 

OMI CORPORATION

2006 Incentive Compensation Plan

 

 

TABLE OF CONTENTS

ARTICLE I.

ESTABLISHMENT; PURPOSES; AND DURATION

	

		 

		 

		
Page 
	
	
1.1
		
. 
		
Establishment of the Plan 
		
1 
	
	
1.2
		
. 
		
Purposes of the Plan 
		
1 
	
	
1.3
		
. 
		
Duration of the Plan 
		
1 
	
	 

	
	 

	
	
ARTICLE II.
	
	
DEFINITIONS
	
	
2.1
		
. 
		
“Affiliate” 
		
1 
	
	
2.2
		
. 
		
“Award” 
		
2 
	
	
2.3
		
. 
		
“Award Agreement” 
		
2 
	
	
2.4
		
. 
		
“Beneficial Ownership” 
		
2 
	
	
2.5
		
. 
		
“Board” or “Board of Directors” 
		
2 
	
	
2.6
		
. 
		
“Cash-Based Award” 
		
2 
	
	
2.7
		
. 
		
“Cause” 
		
2 
	
	
2.8
		
. 
		
“Change of Control” 
		
2 
	
	
2.9
		
. 
		
“Code” 
		
3 
	
	
2.10
		
. 
		
“Committee” 
		
3 
	
	
2.11
		
. 
		
“Consultant” 
		
3 
	
	
2.12
		
. 
		
“Director” 
		
3 
	
	
2.13
		
. 
		
“Disability” 
		
3 
	
	
2.14
		
. 
		
“Dividend Equivalents” 
		
3 
	
	
2.15
		
. 
		
“Effective Date” 
		
3 
	
	
2.16
		
. 
		
“Employee” 
		
3 
	
	
2.17
		
. 
		
“Exchange Act” 
		
3 
	
	
2.18
		
. 
		
“Fair Market Value” 
		
3 
	
	
2.19
		
. 
		
“Fiscal Year” 
		
4 
	
	
2.20
		
. 
		
“Freestanding SAR” 
		
4 
	
	
2.21
		
. 
		
“Grant Price” 
		
4 
	
	
2.22
		
. 
		
“Incentive Stock Option” or “ISO” 
		
4 
	
	
2.23
		
. 
		
“Insider” 
		
4 
	
	
2.24
		
. 
		
“Non-Employee Director” 
		
4 
	
	
2.25
		
. 
		
“Nonqualified Stock Option” or “NQSO” 
		
4 
	
	
2.26
		
. 
		
“Notice” 
		
4 
	
	
2.27
		
. 
		
“Option” or “Stock Option” 
		
4 
	
	
2.28
		
. 
		
“Option Price” 
		
4 
	
	
2.29
		
. 
		
“Other Stock-Based Award” 
		
4 
	
	
2.30
		
. 
		
“Participant” 
		
4 
	
	
2.31
		
. 
		
“Performance Period” 
		
4 
	
	
2.32
		
. 
		
“Performance Share” 
		
4 
	

i

	

		 

		 

		
Page 
	
	
2.33
		
. 
		
“Performance Unit” 
		
4 
	
	
2.34
		
. 
		
“Period of Restriction” 
		
4 
	
	
2.35
		
. 
		
“Person” 
		
4 
	
	
2.36
		
. 
		
“Qualified Change of Control” 
		
4 
	
	
2.37
		
. 
		
“Restricted Stock” 
		
4 
	
	
2.38
		
. 
		
“Restricted Stock Unit” 
		
5 
	
	
2.39
		
. 
		
“Retirement” 
		
5 
	
	
2.40
		
. 
		
“Rule 16b-3” 
		
5 
	
	
2.41
		
. 
		
“Securities Act” 
		
5 
	
	
2.42
		
. 
		
“Share” 
		
5 
	
	
2.43
		
. 
		
“Stock Appreciation Right” or “SAR” 
		
5 
	
	
2.44
		
. 
		
“Subsidiary” 
		
5 
	
	
2.45
		
. 
		
“Substitute Awards” 
		
5 
	
	
2.46
		
. 
		
“Tandem SAR” 
		
5 
	
	
2.47
		
. 
		
“Termination” 
		
5 
	
	 

	
	 

	
	
ARTICLE III.
	
	
ADMINISTRATION
	
	
3.1
		
. 
		
General 
		
5 
	
	
3.2
		
. 
		
Committee 
		
6 
	
	
3.3
		
. 
		
Authority of the Committee 
		
6 
	
	
3.4
		
. 
		
Award Agreements 
		
7 
	
	
3.5
		
. 
		
Discretionary Authority; Decisions Binding 
		
7 
	
	
3.6
		
. 
		
Attorneys; Consultants 
		
8 
	
	
3.7
		
. 
		
Delegation of Administration 
		
8 
	
	 

	
	 

	
	
ARTICLE IV.
	
	
SHARES SUBJECT TO THE PLAN
	
	 	 	 	 
	
4.1
		
. 
		
Number of Shares Available for Grants 
		
8 
	
	
4.2
		
. 
		
Adjustments in Authorized Shares 
		
9 
	
	
4.3
		
. 
		
No Limitation on Corporate Actions 
		
9 
	
	 

	
	 

	
	
ARTICLE V.
	
	
ELIGIBILITY AND PARTICIPATION
	
	 	 	 	 
	
5.1
		
. 
		
Eligibility 
		
10 
	
	
5.2
		
. 
		
Actual Participation 
		
10 
	
	 

	
	 

	
	
ARTICLE VI.
	
	
STOCK OPTIONS
	
	
6.1
		
. 
		
Grant of Options 
		
10 
	
	
6.2
		
. 
		
Award Agreement 
		
10 
	
	
6.3
		
. 
		
Option Price 
		
10 
	
	 

	
	
ii
	

	

		 

		 

		
Page 
	
	
6.4
		
. 
		
Duration of Options 
		
10 
	
	
6.5
		
. 
		
Exercise of Options 
		
10 
	
	
6.6
		
. 
		
Payment 
		
11 
	
	
6.7
		
. 
		
Rights as a Shareholder 
		
11 
	
	
6.8
		
. 
		
Termination of Employment or Service 
		
11 
	
	
6.9
		
. 
		
Limitations on Incentive Stock Options 
		
12 
	
	 

	
	 

	
	
ARTICLE VII.
	
	
STOCK APPRECIATION RIGHTS
	
	 	 	 	 
	
7.1
		
. 
		
Grant of SARs 
		
12 
	
	
7.2
		
. 
		
Grant Price 
		
13 
	
	
7.3
		
. 
		
Exercise of Tandem SARs 
		
13 
	
	
7.4
		
. 
		
Exercise of Freestanding SARs 
		
13 
	
	
7.5
		
. 
		
Award Agreement 
		
13 
	
	
7.6
		
. 
		
Term of SARs 
		
13 
	
	
7.7
		
. 
		
Payment of SAR Amount 
		
13 
	
	
7.8
		
. 
		
Rights as a Shareholder 
		
14 
	
	
7.9
		
. 
		
Termination of Employment or Service 
		
14 
	
	 

	
	 

	
	
ARTICLE VIII.
	
	
RESTRICTED STOCK AND RESTRICTED STOCK UNITS
	
	 	 	 	 
	
8.1
		
. 
		
Awards of Restricted Stock and Restricted Stock Units 
		
14 
	
	
8.2
		
. 
		
Award Agreement 
		
14 
	
	
8.3
		
. 
		
Nontransferability of Restricted Stock 
		
14 
	
	
8.4
		
. 
		
Period of Restriction and Other Restrictions 
		
14 
	
	
8.5
		
. 
		
Delivery of Shares, Payment of Restricted Stock Units 
		
15 
	
	
8.6
		
. 
		
Forms of Restricted Stock Awards 
		
15 
	
	
8.7
		
. 
		
Voting Rights 
		
15 
	
	
8.8
		
. 
		
Dividends and Other Distributions 
		
15 
	
	
8.9
		
. 
		
Termination of Employment or Service 
		
16 
	
	
8.10
		
. 
		
Compliance With Section 409A 
		
16 
	
	 

	
	 

	
	
ARTICLE IX.
	
	
PERFORMANCE UNITS, PERFORMANCE SHARES, AND CASH-BASED AWARDS
	
	 	 	 	 
	
9.1
		
. 
		
Grant of Performance Units, Performance Shares and Cash-Based Awards 
		
16 
	
	
9.2
		
. 
		
Value of Performance Units, Performance Shares and Cash-Based Awards 
		
16 
	
	
9.3
		
. 
		
Earning of Performance Units, Performance Shares and Cash-Based Awards 
		
16 
	
	
9.4
		
. 
		
Form and Timing of Payment of Performance Units, Performance Shares and Cash-Based Awards 
		
17 
	
	
9.5
		
. 
		
Rights as a Shareholder 
		
17 
	
	
9.6
		
. 
		
Termination of Employment or Service 
		
17 
	
	
9.7
		
. 
		
Compliance With Section 409A 
		
17 
	

iii

	
ARTICLE X.
	
	
OTHER STOCK-BASED AWARDS
	
	 

	
	

		 

		 

		
Page 
	
	
10.1
		
. 
		
Other Stock-Based Awards 
		
17 
	
	
10.2
		
. 
		
Value of Other Stock-Based Awards 
		
17 
	
	
10.3
		
. 
		
Payment of Other Stock-Based Awards 
		
18 
	
	
10.4
		
. 
		
Termination of Employment or Service 
		
18 
	
	
10.5
		
. 
		
Compliance With Section 409A 
		
18 
	
	 

	
	 

	
	
ARTICLE XI.
	
	
DIVIDEND EQUIVALENTS
	
	
11.1
		
. 
		
Dividend Equivalents  
		
18 
	
	 

	
	 

	
	
ARTICLE XII.
	
	
TRANSFERABILITY OF AWARDS; BENEFICIARY DESIGNATION
	
	
12.1
		
. 
		
Transferability of Incentive Stock Options 
		
19 
	
	
12.2
		
. 
		
All Other Awards 
		
19 
	
	
12.3
		
. 
		
General 
		
19 
	
	 

	
	 

	
	
ARTICLE XIII.
	
	
RIGHTS OF PARTICIPANTS
	
	
13.1
		
. 
		
Rights or Claims 
		
19 
	
	
13.2
		
. 
		
Adoption of the Plan 
		
20 
	
	
13.3
		
. 
		
Vesting 
		
20 
	
	
13.4
		
. 
		
No Effects on Benefits 
		
20 
	
	
13.5
		
. 
		
One or More Types of Awards 
		
20 
	
	 

	
	 

	
	
ARTICLE XIV.
	
	
CHANGE OF CONTROL
	
	
14.1
		
. 
		
Treatment of Outstanding Awards 
		
20 
	
	
14.2
		
. 
		
No Implied Rights; Other Limitations 
		
22 
	
	
14.3
		
. 
		
Termination, Amendment, and Modifications of Change of Control Provisions 
		
22 
	
	
14.4
		
. 
		
Compliance with Section 409A 
		
22 
	
	 

	
	 

	
	
ARTICLE XV.
	
	
AMENDMENT, MODIFICATION, AND TERMINATION
	
	
15.1
		
. 
		
Amendment, Modification, and Termination 
		
23 
	
	
15.2
		
. 
		
Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events 
		
23 
	

iv

	
ARTICLE XVI.
	
	
TAX WITHHOLDING AND OTHER TAX MATTERS
	
	 

	
	

		 

		 

		
Page 
	
	
16.1
		
. 
		
Tax Withholding 
		
24 
	
	
16.2
		
. 
		
Withholding or Tendering Shares 
		
24 
	
	
16.3
		
. 
		
Restrictions 
		
24 
	
	
16.4
		
. 
		
Special ISO Obligations 
		
24 
	
	
16.5
		
. 
		
Section 83(b) Election 
		
24 
	
	
16.6
		
. 
		
No Guarantee of Favorable Tax Treatment 
		
25 
	
	 

	
	 

	
	
ARTICLE XVII.
	
	
LIMITS OF LIABILITY; INDEMNIFICATION
	
	
17.1
		
. 
		
Limits of Liability 
		
25 
	
	
17.2
		
. 
		
Indemnification 
		
25 
	
	 

	
	 

	
	
ARTICLE XVIII.
	
	
SUCCESSORS
	
	
18.1
		
. 
		
General 
		
26 
	
	 

	
	 

	
	
ARTICLE XIX.
	
	
MISCELLANEOUS
	
	
19.1
		
. 
		
Drafting Context 
		
26 
	
	
19.2
		
. 
		
Forfeiture Events 
		
26 
	
	
19.3
		
. 
		
Severability 
		
26 
	
	
19.4
		
. 
		
Transfer, Leave of Absence 
		
26 
	
	
19.5
		
. 
		
Exercise and Payment of Awards 
		
27 
	
	
19.6
		
. 
		
Deferrals 
		
27 
	
	
19.7
		
. 
		
Loans 
		
27 
	
	
19.8
		
. 
		
No Effect on Other Plans 
		
27 
	
	
19.9
		
. 
		
Section 16 of Exchange Act 
		
27 
	
	
19.10
		
. 
		
Requirements of Law; Limitations on Awards 
		
28 
	
	
19.11
		
. 
		
Participants Deemed to Accept Plan 
		
28 
	
	
19.12
		
. 
		
Governing Law 
		
28 
	
	
19.13
		
. 
		
Plan Unfunded 
		
29 
	
	
19.14
		
. 
		
Administration Costs 
		
29 
	
	
19.15
		
. 
		
Uncertificated Shares 
		
29 
	
	
19.16
		
. 
		
No Fractional Shares 
		
29 
	
	
19.17
		
. 
		
Deferred Compensation 
		
29 
	
	
19.18
		
. 
		
Participants Based Outside of the United States 
		
29 
	

v

OMI CORPORATION

2006 INCENTIVE COMPENSATION PLAN

     OMI Corporation, a Marshall Islands corporation (the “Company”), has adopted the OMI Corporation 2006 Incentive Compensation Plan (the “Plan”) for the benefit of
non-employee directors of the Company, officers and eligible employees and consultants of the Company and any Subsidiaries and Affiliates (as each term defined below), as follows:

ARTICLE I

ESTABLISHMENT; PURPOSES; AND DURATION

     1.1. Establishment of the Plan. The Company hereby establishes this incentive compensation plan to
be known as the “OMI Corporation 2006 Incentive Compensation Plan”, as
set forth in this document. The Plan permits the grant of Nonqualified Stock
Options, Incentive Stock Options, Stock Appreciation Rights, Restricted Stock,
Restricted Stock Units, Performance Units, Performance Shares, Cash-Based Awards
and Other Stock-Based Awards. The Plan was adopted by the Board of Directors (as
defined below) on February 16, 2006. The Plan shall become effective upon
approval by the shareholders of the Company, which approval must occur within
the period beginning on such adoption date and ending on April 26, 2007 (the
“Effective Date”). The Plan shall remain in effect as provided in Section
1.3.

     1.2. Purposes of the Plan. The purposes of the Plan are to provide additional incentives to non-employee directors of
the Company and to those officers, employees and consultants of the Company, Subsidiaries and Affiliates whose substantial contributions are essential to the continued growth and success of the business of the Company and the Subsidiaries and
Affiliates, in order to strengthen their commitment to the Company and the Subsidiaries and Affiliates, and to attract and retain competent and dedicated individuals whose efforts will result in the long-term growth and profitability of the Company
and to further align the interests of such non-employee directors, officers, employees and consultants with the interests of the shareholders of the Company. To accomplish such purposes, the Plan provides that the Company may grant Nonqualified
Stock Options, Incentive Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Units, Performance Shares, Cash-Based Awards and Other Stock-Based Awards.

     1.3. Duration of the Plan. The Plan shall commence on the Effective Date, as described in Section 1.1, and shall remain
in effect, subject to the right of the Board of Directors to amend or terminate the Plan at any time pursuant to Article XV, until all Shares subject to it shall have been delivered, and any restrictions on such Shares have lapsed, pursuant to the
Plan’s provisions. However, in no event may an Award be granted under the Plan on or after ten years from the Effective Date.

ARTICLE II

DEFINITIONS

     Whenever used in the Plan, the following terms shall have the meanings set forth below, and when the meaning is intended, the initial letter of the word shall be capitalized:

     2.1. “Affiliate” means any entity other than the Company and any Subsidiary that is affiliated with the
Company through stock or equity ownership or otherwise and is designated as an Affiliate for purposes of the Plan by the Committee; provided, however, that, notwithstanding any
other provisions of the Plan to the contrary, for purposes of NQSOs and SARs, if an individual who otherwise qualifies as an Employee or Non-Employee Director provides services to such an entity and not to the Company or a Subsidiary, such entity
may only be designated an Affiliate if the Company qualifies as a “service recipient,” within the meaning of Code Section 409A, with respect to such individual; provided further that such definition

1

of “service recipient” shall be determined by (a) applying Code Section 1563(a)(1), (2) and (3), for purposes of determining a controlled group of corporations under Code Section 414(b), using the language
“at least 50 percent” instead of “at least 80 percent” each place it appears in Code Section 1563(a)(1), (2) and (3), and by applying Treasury Regulations Section 1.414(c) -2, for purposes of determining trades or businesses
(whether or not incorporated) that are under common control for purposes of Code Section 414(c), using the language “at least 50 percent” instead of “at least 80 percent” each place it appears in Treasury Regulations Section
1.414(c) -2, and (b) where the use of Shares with respect to the grant of an Option or SAR to such an individual is based upon legitimate business criteria, by applying Code Section 1563(a)(1), (2) and (3), for purposes of determining a controlled
group of corporations under Code Section 414(b), using the language “at least 20 percent” instead of “at least 80 percent” at each place it appears in Code Section 1563(a)(1), (2) and (3), and by applying Treasury Regulations
Section 1.414(c) -2, for purposes of determining trades or businesses (whether or not incorporated) that are under common control for purposes of Code Section 414(c), using the language “at least 20 percent” instead of “at least 80
percent” at each place it appears in Treasury Regulations Section 1.414(c) -2.

     2.2. “Award” means, individually or collectively, a grant under the Plan of Nonqualified Stock Options,
Incentive Stock Options, Stock Appreciation Rights, Restricted Stock Awards, Restricted Stock Units, Performance Shares, Performance Units, Cash-Based Awards, and Other Stock-Based Awards.

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

      2.4. “Beneficial Ownership” (including
correlative terms) shall have the meaning given such term in Rule 13d-3 promulgated under the Exchange Act.

      2.5. “Board” or “Board of Directors” means the Board of Directors of the Company.

      2.6. “Cash-Based Award” means an Award granted to a Participant, as described in Article IX.

      2.7. “Cause” shall
have the definition given such term in a Participant’s Award Agreement,
or in the absence of any such definition, as
determined in good faith by the Committee.

      2.8. “Change of Control” means:

	 	(a) 	a “change in control” with respect to the Company that would be required to be reported in response to Item 1(a) of the Company’s current report on Form 8-K, pursuant to Section 13 or 15(d) of the Exchange Act, or equivalent for foreign filers; provided that, without limitation, a “Change of Control” shall be deemed to have occurred at such time as any Person is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of twenty percent (20%) or more of the combined voting power of the then outstanding securities of the Company (other than, in any such event, a sale or other disposition to or for the benefit of any employee benefit plan (or related trust) of the Company or a subsidiary of the Company, or acquisition or offer to acquire, by or on behalf of, the Company or a Subsidiary or any group comprised solely of such entities, of Shares); provided, however, that a “Change of Control” shall not be deemed to have occurred if such a Person files and maintains a Schedule 13G pursuant to Rule 13d-1 under the Exchange Act in connection with its purchase of such securities; provided further, however, that upon the filing of a Schedule 13D pursuant to such rule by such Person in connection with such securities, there shall be deemed to be an immediate “Change of Control”; or
	 	 	 
	 	(b) 	the individuals who constitute the “Incumbent Board” cease for any reason to constitute at least a majority of the Board. The “Incumbent Board” shall mean those individuals who constitute the Board immediately following the Effective Date, or any additional individual who becomes a member of the Board and whose election, or nomination for election, by the
	 	 	 
	 	 	 

 

 

2

	 	 	shareholders of the Company was approved by a vote of at least three-fourths of the members of the Board comprising the Incumbent Board (either by a specific vote or by approval of the proxy statement of the Company in which such individual was named as a nominee for member of the Board without objection to such nomination); provided however, that no individual shall be considered a member of the Incumbent Board if such individual initially assumed office as a result of either an actual or threatened “Election Contest” (as described in Rule 14a-11 promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board (a “Proxy Contest”) including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest.

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

     2.10. “Committee” means the Compensation Committee of the Board of Directors or a subcommittee thereof, or
such other committee designated by the Board to administer the Plan.

     2.11. “Consultant” means an independent contractor who performs services for the Company or a Subsidiary or
Affiliate in a capacity other than as an Employee or Director.

     2.12. “Director” means any individual who is a member of the Board of Directors of the Company.

     2.13. “Disability” means the inability to engage in any substantial gainful occupation to which the relevant individual is suited by education, training or experience, by reason of any medically determinable physical or mental impairment, which condition can be expected to result in death or continues for a continuous period of not less than
twelve (12) months; provided, however, that, for purposes of ISOs, “Disability” shall mean “permanent and total disability” as set forth in Section 22(e)(3)
of the Code.

     2.14. “Dividend Equivalents” means the equivalent value (in cash or Shares) of dividends that would otherwise
be paid on the Shares subject to an Award but that have not been issued or delivered, as described in Article XI.

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

     2.16. “Employee” means
any person designated as an employee of the Company, a Subsidiary and/or an Affiliate
on the payroll records thereof. An Employee shall not include any individual
during any period he or she is classified or treated by the Company, a Subsidiary
or an Affiliate as an independent contractor, a consultant, or any  employee
of an employment, consulting, or temporary agency or any other entity other than
the Company, a Subsidiary and/or an Affiliate without regard to whether such
individual is subsequently determined to have been, or is subsequently  retroactively
reclassified as a common-law employee of the Company, a Subsidiary and/or an
Affiliate during such period. As further provided in Section 19.4, for purposes
of the Plan, upon approval by the Committee, the term Employee may also  include
Employees whose employment with the Company, a Subsidiary or an Affiliate has
been terminated subsequent to being granted an Award under the Plan. For the
avoidance of doubt, a Director who would otherwise be an “Employee” within
 the meaning of this Section.

     2.17. “Exchange Act” means the Securities Exchange Act of 1934, as it may be amended from time to time, including the rules and regulations promulgated thereunder and successor provisions and rules and regulations thereto.

     2.18. “Fair Market Value” means the fair market value of the Shares as determined by the Committee by the
reasonable application of such reasonable valuation method, consistently applied, as the Committee deems appropriate; provided, however, that, with respect to ISOs, for
purposes of Section 6.3 and 6.9(c), such fair market value shall be determined subject to Section 422(c)(7) of the Code; provided further, however, that if the Shares are
readily tradable on an established securities market, Fair Market Value on any date shall be the last sale price reported for the Shares on such market on such date or, if no sale is reported on such date, on the last date preceding such date on
which a sale was reported. In each case, the Committee shall determine Fair Market Value in a manner that satisfies the applicable requirements of Code Section 409A.

3

     2.19. “Fiscal Year” means the calendar year, or such other consecutive twelve-month period as the Committee may select.

     2.20. “Freestanding SAR” means an SAR that is granted independently of any Options, as described in Article VII.

     2.21. “Grant Price” means the price established at the time of grant of an SAR pursuant to Article VII, used
to determine whether there is any payment due upon exercise of the SAR.

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

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

     2.24. “Non-Employee Director” means a Director who is not an Employee.

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

     2.26. “Notice” means notice provided by a Participant to the Company in a manner prescribed by the Committee.

     2.27. “Option” or “Stock Option” means an Incentive Stock Option or a Nonqualified Stock Option, as described in Article VI.

     2.28. “Option Price” means the price at which a Share may be purchased by a Participant pursuant to an Option.

     2.29. “Other Stock-Based Award” means an equity-based or equity-related Award described in Section 10.1,
granted in accordance with the terms and conditions set forth in Article X.

     2.30. “Participant” means any eligible individual as set forth in Article V who holds one or more outstanding Awards.

     2.31. “Performance Period” means the period of time during which the performance goals must be met in order to
determine the degree of payout and/or vesting with respect to, or the amount or entitlement to, an Award.

     2.32. “Performance Share” means an Award of a performance share granted to a Participant, as described in Article IX.

     2.33. “Performance Unit” means an Award of a performance unit granted to a Participant, as described in Article IX.

     2.34. “Period of Restriction” means the period during which Shares of Restricted Stock or Restricted Stock
Units are subject to a substantial risk of forfeiture, and, in the case of Restricted Stock, the transfer of Shares of Restricted Stock is limited in some way, as provided in Article VIII.

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

     2.36. “Qualified Change of Control” means a Change of Control that qualifies as a change in the ownership or
effective control of the Company, or in the ownership of a substantial portion of the assets of the Company, within the meaning of Section 409A(a)(2)(A)(v) of the Code.

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

4

     2.38. “Restricted Stock Unit” means an Award, whose value is equal to a Share, granted to a Participant
pursuant to Article VIII.

     2.39. “Retirement” means Termination of a Participant due to either (a) retirement in accordance with any
employee pension benefit plan maintained by the Company that is intended to satisfy the requirements of Section 401(a) of the Code entitling such Participant to a full pension under such plan or (b) retirement with the consent of the
Committee.

     2.40. “Rule 16b-3” means Rule 16b-3 under the Exchange Act, or any successor rule, as the same may be amended
from time to time.

     2.41. “Securities Act” means the Securities Act of 1933, as it may be amended from time to time, including the
rules and regulations promulgated thereunder and successor provisions and rules and regulations thereto.

     2.42. “Share” means a share of common stock, par value $0.50 per share, of the Company (including any new,
additional or different stock or securities resulting from any change in corporate capitalization as listed in Section 4.2) .

     2.43. “Stock Appreciation Right” or “SAR” means an Award, granted alone (a “Freestanding SAR”) or in connection with a related Option (a “Tandem
SAR”), designated as an SAR, pursuant to the terms of Article VII.

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

     2.45. “Substitute Awards” means Awards granted or Shares issued by the Company in assumption of, or in
substitution or exchange for, options or other awards previously granted, or the right or obligation to grant future options or other awards, by a company acquired by the Company, a Subsidiary and/or an Affiliate or with which the Company, a
Subsidiary and/or an Affiliate combines, or otherwise in connection with any merger, consolidation, acquisition of property or stock, or reorganization involving the Company, a Subsidiary or an Affiliate, including a transaction described in Code
Section 424(a).

     2.46. “Tandem SAR” means a SAR that is granted in connection with a related Option pursuant to Article VII.

     2.47. “Termination” means the time when a Participant ceases the performance of services for the Company, any
Affiliate or Subsidiary, as applicable, for any reason, with or without Cause, including a Termination by resignation, discharge, death, Disability or Retirement, but excluding (a) a Termination where there is a simultaneous reemployment (or
commencement of service) or continuing employment (or service) of a Participant by the Company, Affiliate or any Subsidiary, (b) at the discretion of the Committee, a Termination that results in a temporary severance, and (c) at the discretion of
the Committee, a Termination of an Employee that is immediately followed by the Participant’s service as a Non-Employee Director.

ARTICLE III

ADMINISTRATION

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

5

     3.2. Committee. The members of the Committee shall be appointed from time to time by, and shall serve at the discretion
of, the Board of Directors. The Committee shall consist of not less than two (2) non-employee members of the Board, each of whom satisfies such criteria of independence as the Board may establish and such additional regulatory or listing
requirements as the Board may determine to be applicable or appropriate. Appointment of Committee members shall be effective upon their acceptance of such appointment. Committee members may be removed by the Board at any time either with or without
cause, and such members may resign at any time by delivering notice thereof to the Board. Any vacancy on the Committee, whether due to action of the Board or any other reason, shall be filled by the Board. The Committee shall keep minutes of its
meetings. A majority of the Committee shall constitute a quorum and a majority of a quorum may authorize any action. Any decision reduced to writing and signed by a majority of the members of the Committee shall be fully effective as if it has been
made at a meeting duly held.

     3.3. 
Authority of the Committee. The Committee shall have full discretionary authority to grant,
pursuant to the terms of the Plan, Awards to those individuals who are eligible
to receive Awards under the Plan. Except as limited by law or by the Certificate
of Incorporation or By-Laws of the Company, and subject to the provisions
herein, the Committee shall have full power, in accordance with the other terms
and provisions of the Plan, to:

	
        (a)
    	Select Employees, Non-Employee Directors and
        Consultants who may receive Awards under the Plan and become Participants;
	     	 
	
        (b)
    	 Determine eligibility for participation in
        the Plan and decide all questions concerning eligibility for, and the
        amount of, Awards under the Plan;
	
        
    	 
	
        (c)
    	Determine the sizes and types of Awards;
	
        
    	 
	
        (d)
    	 Determine the terms and conditions of Awards,
        including the Option Prices of Options and the Grant Prices of SARs;
	
        
    	 
	
        (e)
    	 Grant Awards as an alternative to, or as the
        form of payment for grants or rights earned or payable under, other bonus
        or compensation plans, arrangements or policies of the Company or a Subsidiary
        or Affiliate;
	
        
    	 
	
        (f)
    	 Grant Substitute Awards on such terms and
        conditions as the Committee may prescribe, subject to compliance with
        the ISO rules under Code Section 422 and the nonqualified deferred compensation
        rules under Code Section 409A, where applicable;
	
        
    	 
	
        (g)
    	 Make all determinations under the Plan concerning
        Termination of any Participant’s employment or service with the
        Company or a Subsidiary or Affiliate, including whether such Termination
        occurs by reason of Cause, Disability or Retirement or in connection
        with a Change of Control and whether a leave constitutes a Termination;
	
        
    	 
	
        (h)
    	 Construe and interpret the Plan and any agreement
        or instrument entered into under the Plan, including any Award Agreement;
	
        
    	 
	
        (i)
    	 Establish and administer any terms, conditions,
        restrictions, limitations, forfeiture, vesting or exercise schedule,
        and other provisions of or relating to any Award;
	
        
    	 
	
        (j)
    	Establish and administer any performance goals
        in connection with any Awards, including performance criteria and applicable
        Performance Periods, determine the extent to which any performance goals
        and/or other terms and conditions of an Award are attained or are not
        attained;
	
        
    	 
	
      
        (k)
    	Construe any ambiguous provisions, correct
          any defects, supply any omissions and reconcile any inconsistencies
          in the Plan and/or any Award Agreement or any other instrument relating
          to any Awards;

 

6

	
         (l) 
    	Establish, adopt, amend, waive and/or rescind
        rules, regulations, procedures, guidelines, forms and/or instruments
        for the Plan’s operation or administration;
	
        
    	 
	
         (m) 
    	Make all valuation determinations relating
        to Awards and the payment or settlement thereof;
	
        
    	 
	
         (n) 
    	 Grant waivers of terms, conditions, restrictions
        and limitations under the Plan or applicable to any Award, or accelerate
        the vesting or exercisability of any Award;
	
        
    	 
	
         (o) 
    	 Subject to the provisions of Article XV, amend
        or adjust the terms and conditions of any outstanding Award and/or adjust
        the number and/or class of shares of stock subject to any outstanding
        Award;
	
        
    	 
	
         (p) 
    	 At any time and from time to time after the
        granting of an Award, specify such additional terms, conditions and restrictions
        with respect to such Award as may be deemed necessary or appropriate
        to ensure compliance with any and all applicable laws or rules, including
        terms, restrictions and conditions for compliance with applicable securities
        laws or listing rules, methods of withholding or providing for the payment
        of required taxes and restrictions regarding a Participant’s ability
        to exercise Options through a cashless (broker-assisted) exercise;
	
        
    	 
	
         (q) 
    	 Offer to buy out an Award previously granted,
        based on such terms and conditions as the Committee shall establish with
        and communicate to the Participant at the time such offer is made;
	
        
    	 
	
         (r) 
    	 Determine whether, and to what extent and
        under what circumstances Awards may be settled in cash, Shares or other
        property or canceled or suspended; and
	
        
    	 
	
         (s) 
    	 Exercise all such other authorities, take
        all such other actions and make all such other determinations as it deems
        necessary or advisable for the proper operation and/or administration
        of the Plan.

     3.4. Award Agreements. The Committee shall, subject to applicable laws and rules, determine the date an Award is
granted. Each Award shall be evidenced by an Award Agreement; however, two or more Awards granted to a single Participant may be combined in a single Award Agreement. An Award
Agreement shall not be a precondition to the granting of an Award; provided, however, that (a) the Committee may, but need not, require as a condition to any Award
Agreement’s effectiveness, that such Award Agreement be executed on behalf of the Company and/or by the Participant to whom the Award evidenced thereby shall have been granted (including by electronic signature or other electronic indication of
acceptance), and such executed Award Agreement be delivered to the Company, and (b) no person shall have any rights under any Award unless and until the Participant to whom such Award shall have been granted has complied with the applicable terms
and conditions of the Award. The Committee shall prescribe the form of all Award Agreements, and, subject to the terms and conditions of the Plan, shall determine the content of all Award Agreements. Any Award Agreement may be supplemented or
amended in writing from time to time as approved by the Committee; provided that the terms and conditions of any such Award Agreement as supplemented or amended are not
inconsistent with the provisions of the Plan. In the event of any dispute or discrepancy concerning the terms of an Award, the records of the Committee or its designee shall be determinative.

     3.5. Discretionary Authority; Decisions Binding. The Committee shall have full discretionary authority in all matters
related to the discharge of its responsibilities and the exercise of its authority under the Plan. All determinations, decisions, actions and interpretations by the Committee with respect to the Plan and any Award Agreement, and all related orders
and resolutions of the Committee shall be final, conclusive and binding on all Participants, the Company and its shareholders, any Subsidiary or Affiliate and all persons having or claiming to have any right or interest in or under the Plan and/or
any Award Agreement. The Committee shall consider such factors as it deems relevant to making or taking such decisions, determinations, actions and interpretations, including the recommendations or advice of any Director or officer or employee of
the Company, any director, officer or employee of a Subsidiary or Affiliate and such attorneys, consultants and accountants as the Committee may select. A Participant or other holder of an Award may contest a decision or action by the Committee with
respect to such person or Award only on the grounds that such decision or action was arbitrary or capricious or was unlawful, and any review

7

of such decision or action shall be limited to determining whether the Committee’s decision or action was arbitrary or capricious or was unlawful.

     3.6. Attorneys; Consultants. The Committee may consult with counsel who may be counsel to the Company. The Committee
may, with the approval of the Board, employ such other attorneys and/or consultants, accountants, appraisers, brokers, agents and other persons, any of whom may be an Employee, as the Committee deems necessary or appropriate. The Committee, the
Company and its officers and Directors shall be entitled to rely upon the advice, opinions or valuations of any such persons. The Committee shall not incur any liability for any action taken in good faith in reliance upon the advice of such counsel
or other persons.

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

ARTICLE IV

SHARES SUBJECT TO THE PLAN

     4.1. Number of Shares Available for Grants. The shares of stock subject to Awards granted under the Plan shall be
Shares. Such Shares subject to the Plan may be either authorized and unissued shares (which will not be subject to preemptive rights) or previously issued shares acquired by the Company or any Subsidiary. Subject to adjustment as provided in Section
4.2, the total number of Shares that may be delivered pursuant to Awards under the Plan shall be five million (5,000,000) Shares (the “Share Reserve”). For purposes
of this Section 4.1, (a) each Share delivered pursuant to an Option shall reduce the Share Reserve by one (1) Share; (b) each Share subject to the exercised portion of a SAR (whether the distribution upon exercise is made in cash, Shares or a
combination of cash and Shares) shall reduce the Share Reserve by one (1) Share; (c) each Share delivered pursuant to a Restricted Stock Unit Award, Performance Share Award, Performance Unit Award, or Other Stock-Based Award shall reduce the Share
Reserve by one and one-half (1.5) Shares; (c) each Share delivered pursuant to a Restricted Stock Award without a purchase price, or with a per-share purchase price lower than one hundred percent (100%) of the Fair Market Value of a Share on the
grant date of such Restricted Stock Award, shall reduce the Share Reserve by one and one-half (1.5) Shares; (d) each Share delivered pursuant to a Restricted Stock Award with a per-share purchase price at least equal to one hundred percent (100%) of
the Fair Market Value of a Share on the grant date of such Restricted Stock Award shall reduce the Share Reserve by one (1) Share; and (e) to the extent that a distribution pursuant to an Award is made in cash, the Share Reserve shall be reduced by
the number of Shares subject to the redeemed, paid or exercised portion of such Award. Subject to the immediately preceding sentence and, in the case of ISOs, any limitations applicable thereto under the Code, if any Shares are subject to an Option,
SAR, or other Award which for any reason expires or is terminated or canceled without having been fully exercised or satisfied, or are subject to any Restricted Stock Award (including any Shares subject to a Participant’s Restricted Stock Award
that are repurchased by the Company at the Participant’s cost), Restricted Stock Unit Award or other Award granted under the Plan which are forfeited, the Shares subject to such Award shall, to the extent of any such expiration, termination,
cancellation or forfeiture, be available for delivery in connection with future Awards under the Plan. However, notwithstanding any other provisions of this Section 4.1 to the contrary, (i) Shares withheld or tendered to pay the exercise price or
withholding taxes with respect to an outstanding Award shall not again be made available for issuance

8

pursuant to Awards under the Plan, and (ii) the payment of cash dividends or Dividend Equivalents (whether in cash or Shares) in connection with Awards shall not reduce the Share Reserve. Any Shares delivered under the Plan
upon exercise or satisfaction of Substitute Awards shall not reduce the Shares available for delivery under the Plan; provided, however, that the total number of Shares that
may be delivered pursuant to Incentive Stock Options granted under the Plan shall be equal to the Share Reserve, as adjusted pursuant to this Section 4.1, but without application of the foregoing provisions of this sentence.

     4.2. Adjustments in Authorized Shares. In the event of any corporate event or transaction (including a change in the
Shares or the capitalization of the Company), such as a reclassification, recapitalization, merger, consolidation, reorganization (whether or not such reorganization comes within the definition of such term in Section 368 of the Code), issuance of
warrants or rights, dividend or other distribution (whether in the form of cash, stock or other property), stock split or reverse stock split, spin-off, split-up, combination or exchange of shares, repurchase of shares, or other like change in
corporate structure, partial or complete liquidation of the Company or distribution (other than normal cash dividends) to shareholders of the Company, or any similar corporate event or transaction, the Committee, in its discretion, in order to
prevent dilution or enlargement of Participants’ rights under the Plan, shall substitute or adjust, as applicable, the number, class and kind of securities which may be delivered under Section 4.1; the number, class and kind, and/or price (such
as the Option Price of Options or the Grant Price of SARs) of securities subject to outstanding Awards; and other value determinations applicable to outstanding Awards; provided, however, that the number of Shares subject to any Award shall always be a whole number. The Committee, in its sole discretion, may also make appropriate adjustments and modifications in the terms of any outstanding Awards to reflect or related
to any such events, adjustments, substitutions or changes, including modifications of performance goals and changes in the length of Performance Periods. Any adjustment, substitution or change pursuant to this Section 4.2 made with respect to an
Award intended to be an Incentive Stock Option shall be made only to the extent consistent with such intent, unless the Committee determines otherwise. The Committee shall not make any adjustment pursuant to this Section 4.2 that would cause an
Award that is otherwise exempt from Code Section 409A to become subject to Code Section 409A, or that would cause an Award that is subject to Code Section 409A to fail to satisfy the requirements of Code Section 409A. All determinations of the
Committee as to adjustments or changes, if any, under this Section 4.2 shall be conclusive and binding on the Participants.

     4.3. No Limitation on Corporate Actions. The existence of the Plan and any Awards granted hereunder shall not affect in
any way the right or power of the Company, any Subsidiary or any Affiliate to make or authorize any adjustment, recapitalization, reorganization or other change in its capital structure or business structure, any merger or consolidation, any
issuance of debt, preferred or prior preference stock ahead of or affecting the Shares, additional shares of capital stock or other securities or subscription rights thereto, any dissolution or liquidation, any sale or transfer of all or part of its
assets or business or any other corporate act or proceeding. Further, except as expressly provided herein or by the Committee, (i) the issuance by the Company of Shares or any class of securities convertible into shares of stock of any class, for
cash, property, labor or services, upon direct sale, upon the exercise of rights or warrants to subscribe therefor, or upon conversion of shares or obligations of the Company convertible into such shares or other securities, (ii) the payment of a
dividend in property other than Shares, (iii) the occurrence of any capital change described in Section 4.2 or (iv) the occurrence of any similar transaction, and in any case whether or not for fair value, shall not affect, and no adjustment by
reason thereof shall be made with respect to, the number of Shares subject to Awards theretofore granted or the Option Price, Grant Price or purchase price per share applicable to any Award, unless the Committee shall determine, in its discretion,
that an adjustment is necessary or appropriate.

9

ARTICLE V

ELIGIBILITY AND PARTICIPATION

     5.1. Eligibility. Employees,
Non-Employee Directors and Consultants shall be eligible to become Participants
and receive  Awards in accordance with the terms and conditions of the Plan,
subject to the limitations on the granting of ISOs set forth in Section 6.9(a).

     5.2. Actual Participation. Subject to the provisions of the Plan, the Committee may, from time to time, select
Participants from all eligible Employees, Non-Employee Directors and Consultants and shall determine the nature and amount of each Award.

ARTICLE VI 

STOCK OPTIONS

     6.1. Grant of Options. Subject to the terms and provisions of the Plan, Options may be granted to Participants in such
number, and upon such terms, and at any time and from time to time as shall be determined by the Committee. The Committee may grant an Option or provide for the grant of an Option, either from time to time in the discretion of the Committee or
automatically upon the occurrence of specified events, including the achievement of performance goals, the satisfaction of an event or condition within the control of the recipient of the Option or within the control of others. The granting of an
Option shall take place when the Committee by resolution, written consent or other appropriate action determines to grant such Option for a particular number of Shares to a particular Participant at a particular Option Price.

     6.2. Award Agreement. Each Option grant shall be evidenced by an Award Agreement that shall specify the Option Price,
the maximum duration of the Option, the number of Shares to which the Option pertains, the conditions upon which the Option shall become exercisable and such other provisions as the Committee shall determine, which are not inconsistent with the
terms of the Plan; provided that if an Award Agreement does not contain exercisability criteria, the Option governed by such Award Agreement shall become exercisable in equal
parts on each of the first five (5) anniversaries of the date on which the Option was granted, subject to the other terms and conditions of the Award Agreement and the Plan. The Award Agreement also shall specify whether the Option is intended to be
an ISO or an NQSO. To the extent that any Option does not qualify as an ISO (whether because of its provisions or the time or manner of its exercise or otherwise), such Option, or the portion thereof which does not so qualify, shall constitute a
separate NQSO.

     6.3. Option Price. The Option Price for each Option shall be determined by the Committee and set forth in the Award
Agreement; provided that, subject to Section 6.9(c), the Option Price of an Option shall be not less than one hundred percent (100%) of the Fair Market Value of a Share on the
date the Option is granted; provided further, that Substitute Awards or Awards granted in connection with an adjustment provided for in Section 4.2, in the form of stock
options, shall have an Option Price per Share that is intended to maintain the economic value of the Award that was replaced or adjusted, as determined by the Committee.

     6.4. Duration of Options. Each Option granted to a Participant shall expire at such time as the Committee shall
determine at the time of grant and set forth in the Award Agreement; provided, however, that no Option shall be exercisable later than the tenth (10th) anniversary of its date
of grant, subject to the respective last sentences of Sections 6.5 and 6.9(c) .

     6.5. Exercise of Options. Options shall be exercisable at such times and be subject to such restrictions and conditions
as the Committee shall in each instance determine and set forth in the Award Agreement, which need not be the same for each grant or for each Option or Participant; provided, however, that no Option (unless it is a Substitute Award) may (a) become exercisable until the expiration of a period of at least six (6) months after the grant date of such Option or (b) become exercisable in full prior to three (3) years
from the grant date of such Option, except in the event of the Optionee’s death, Disability or

10

Retirement or a Change of Control, or, with respect to clause (b) immediately preceding, other circumstances specified by the Committee. An Agreement may provide that the period of time over which an Option other than an
ISO may be exercised shall be automatically extended if on the scheduled expiration date of such Option the Optionee’s exercise of such Option would violate applicable securities laws; provided,
however, that during such extended exercise period the Option may only be exercised to the extent the Option was exercisable in accordance with its terms immediately prior to such scheduled expiration date;
provided further, however, that such extended exercise period shall end not later than thirty (30) days after the exercise of such Option first would no longer violate such
laws.

     6.6. Payment. Options shall be exercised by the delivery of a written notice of exercise to the Company, in a form
specified or accepted by the Committee, or by complying with any alternative exercise procedures that may be authorized by the Committee, setting forth the number of Shares with respect to which the Option is to be exercised, accompanied by full
payment for such Shares, which shall include applicable taxes, if any, in accordance with Article XVI. The Option Price upon exercise of any Option shall be payable to the Company in full either: (a) in cash or its equivalent; (b) subject to such
terms, conditions and limitations as the Committee may prescribe, by tendering (either by actual delivery or attestation) unencumbered Shares previously acquired by the Participant exercising such Option having an aggregate Fair Market Value at the
time of exercise equal to the total Option Price, (c) by a combination of (a) and (b); or (d) by any other method approved or accepted by the Committee in its sole discretion, including, if the Committee so determines, a cashless (broker-assisted)
exercise that complies with all applicable laws. Subject to any governing rules or regulations, as soon as practicable after receipt of a written notification of exercise and full payment in accordance with the preceding provisions of this Section
6.6, the Company shall deliver to the Participant exercising an Option, in the Participant’s name, evidence of book entry Shares, or, upon the Participant’s request, Share certificates, in an appropriate amount based upon the number of
Shares purchased under the Option, subject to Section 19.10. Unless otherwise determined by the Committee, all payments under all of the methods described above shall be paid in United States dollars.

     6.7. Rights as a Shareholder. No Participant or other person shall become the beneficial owner of any Shares subject to
an Option, nor have any rights to dividends or other rights of a shareholder with respect to any such Shares, until the Participant has actually received such Shares following exercise of his or her Option in accordance with the provisions of the
Plan and the applicable Award Agreement.

     6.8. Termination of Employment or Service. Except as otherwise provided in the Award Agreement, an Option may be
exercised only to the extent that it is then exercisable, and if at all times during the period beginning with the date of granting of such Option and ending on the date of exercise of such Option the Participant is an Employee or Non-Employee
Director, and shall terminate immediately upon a Termination of the Participant. An Option shall cease to become newly exercisable upon a Termination of the holder thereof. Notwithstanding the immediately foregoing sentences, an Option may be
exercised following Termination as provided below in this Section 6.8, unless otherwise provided in the Award Agreement:

	
        (a)
    
  	

In the event a Participant ceases to be an Employee because of Retirement or ceases to be a Non-Employee Director because of voluntary resignation, the Participant shall have the right to exercise his or her Option, to the extent exercisable as of the date of such Retirement or voluntary resignation, respectively, at any time within one (1) year after Retirement or voluntary resignation, respectively.

	
    
  	 

	
	
        (b)
    
  	
      In the event a Participant ceases to be an Employee or Non-Employee Director due to Disability, the Option
	  held by the Participant may be exercised, to the extent exercisable as of the date of such Termination, at any time within one (1) year after such Termination. 
      

	
     
  	

	  

	
     (c)
    
  	
      In the event a Participant’s employment with or rendering of services as a Consultant to the Company or any
	  Affiliate or Subsidiary or a Participant’s rendering of services as a Non-Employee Director to the Company ceases for reasons other than those described in subsections (a) or (b) immediately above and not due to Termination for 
      

11

	 	
      

	     	
      Cause, his or her Option, to the extent exercisable as of the date of such Termination, may be exercised at any time prior to the first (1st) anniversary of
	  the date of such Termination.

	 	 
	
      (d)
      
    	In the event a Participant dies either while an Employee, Consultant or Non-Employee Director or after Termination under circumstances described in subsections (a), (b) or (c) immediately above within the applicable time period described therein, any Options held by such Participant, to the extent such Options would have been exercisable in accordance with the applicable subsection of this Section 6.8 as of the date of the Participant’s death, may be exercised at any time within one (1) year after the Participant’s death by the Participant’s beneficiary or the executors or administrators of the Participant’s estate or by any person or persons who shall have acquired the Option directly from the Participant by bequest or inheritance, in accordance herewith.

      Notwithstanding the foregoing provisions of this Section 6.8 to the contrary, the Committee may determine in its discretion that an Option may be exercised following any such Termination,
whether or not exercisable at the time of such Termination. Subsections (a), (b), (c) and (d) of this Section 6.8, and the immediately preceding sentence, shall be subject to the condition that in no event may an Option be exercised after a
Participant’s Termination for Cause or after the expiration date of such Option specified in the applicable Award Agreement.

     6.9. Limitations on Incentive Stock Options.

	
      (a)
    	General. No
        ISO shall be granted to any individual otherwise eligible to participate
        in the Plan who is not an Employee of the Company or a Subsidiary on
        the date of granting of such Option. Any ISO granted under the Plan shall
        contain such terms and conditions, consistent with the Plan, as the Committee
        may determine to be necessary to qualify such Option as an “incentive
        stock option” under Section 422 of the Code. Any ISO granted under
        the Plan may be modified by the Committee to disqualify such Option from
        treatment as an “incentive stock option” under Section 422
    of the Code.
	
      
    	 
	
      (b)
    	$100,000
          Per Year Limitation. Notwithstanding
          any intent to grant ISOs, an Option granted under the Plan will not
          be considered an ISO to the extent that it, together with any other “incentive
          stock options” (within the meaning of Section 422 of the Code,
          but without regard to subsection (d) of such Section) under the Plan
          and any other “incentive stock option” plans of the Company,
          any Subsidiary and any “parent corporation” of the Company
          within the meaning of Section 424(e) of the Code, are exercisable for
          the first time by any Participant during any calendar year with respect
          to Shares having an aggregate Fair Market Value in excess of $100,000
          (or such other limit as may be required by the Code) as of the time
          the Option with respect to such Shares is granted. The rule set forth
          in the preceding sentence shall be applied by taking Options into account
    in the order in which they were granted.
	
      
    	 
	
      (c)
    	Options Granted
          to Certain Shareholders. No ISO
          shall be granted to an individual otherwise eligible to participate
          in the Plan who owns (within the meaning of Section 424(d) of the Code),
          at the time the Option is granted, more than ten percent (10%) of the
          total combined voting power of all classes of stock of the Company
          or a Subsidiary or any “parent corporation” of the Company
          within the meaning of Section 424(e) of the Code. This restriction
          does not apply if at the time such ISO is granted the Option Price
          of the ISO is at least 110% of the Fair Market Value of a Share on
          the date such ISO is granted, and the ISO by its terms is not exercisable
    after the expiration of five years from such date of grant.

ARTICLE VII

  STOCK APPRECIATION RIGHTS

     7.1. Grant of SARs. Subject to the terms and conditions of the Plan, SARs may be granted to Participants at any time and
from time to time as shall be determined by the Committee. The Committee may grant an SAR (a) in connection and

12

simultaneously with the grant of an Option (a Tandem SAR) or (b) independent of, and unrelated to, an Option (a Freestanding SAR). The Committee shall have complete discretion in determining the number of Shares to which a
SAR pertains (subject to Article IV) and, consistent with the provisions of the Plan, in determining the terms and conditions pertaining to any SAR.

     7.2. Grant Price. The Grant Price for each SAR shall be determined by the Committee and set forth in the Award
Agreement, subject to the limitations of this Section 7.2. The Grant Price for each Freestanding SAR shall be not less than one hundred percent (100%) of the Fair Market Value of a Share on the date such Freestanding SAR is granted, except in the
case of Substitute Awards or Awards granted in connection with an adjustment provided for in Section 4.2. The Grant Price of a Tandem SAR shall be equal to the Option Price of the related Option.

     7.3. Exercise of Tandem SARs. Tandem SARs may be exercised for all or part of the Shares subject to the related Option
upon the surrender of the right to exercise the equivalent portion of the related Option. A Tandem SAR shall be exercisable only when and to the extent the related Option is exercisable and may be exercised only with respect to the Shares for which
the related Option is then exercisable. A Tandem SAR shall entitle a Participant to elect, in the manner set forth in the Plan and the applicable Award Agreement, in lieu of exercising his or her unexercised related Option for all or a portion of
the Shares for which such Option is then exercisable pursuant to its terms, to surrender such Option to the Company with respect to any or all of such Shares and to receive from the Company in exchange therefor a payment described in Section 7.7. An
Option with respect to which a Participant has elected to exercise a Tandem SAR shall, to the extent of the Shares covered by such exercise, be canceled automatically and surrendered to the Company. Such Option shall thereafter remain exercisable
according to its terms only with respect to the number of Shares as to which it would otherwise be exercisable, less the number of Shares with respect to which such Tandem SAR has been so exercised. Notwithstanding any other provision of the Plan to
the contrary, with respect to a Tandem SAR granted in connection with an ISO: (a) the Tandem SAR will expire no later than the expiration of the related ISO; (b) the value of the payment with respect to the Tandem SAR may not exceed the difference
between the Fair Market Value of the Shares subject to the related ISO at the time the Tandem SAR is exercised and the Option Price of the related ISO; and (c) the Tandem SAR may be exercised only when the Fair Market Value of the Shares subject to
the ISO exceeds the Option Price of the ISO.

     7.4. Exercise of Freestanding SARs. Freestanding SARs may be exercised upon whatever terms and conditions the Committee,
in its sole discretion, in accordance with the Plan, determines and sets forth in the Award Agreement; provided, however, that no SAR (unless it is a Substitute Award) may (a)
become exercisable until the expiration of a period of at least six (6) months after the grant date of such SAR or (b) become exercisable in full prior to three (3) years from the grant date of such SAR, except in the event of the holder’s
death, Disability or Retirement or a Change of Control, or, with respect to clause (b) immediately preceding, other circumstances specified by the Committee.

     7.5. Award Agreement. Each SAR grant shall be evidenced by an Award Agreement that shall specify the number of Shares to
which the SAR pertains, the Grant Price, the term of the SAR, and such other terms and conditions as the Committee shall determine in accordance with the Plan.

     7.6. Term of SARs. The term of a SAR granted under the Plan shall be determined by the Committee, in its sole
discretion; provided, however, that the term of any Tandem SAR shall be the same as the related Option and no SAR shall be exercisable more than ten (10) years after it is
granted, subject to the last sentence of Section 6.5 in the case of a Tandem SAR.

     7.7. Payment of SAR Amount. An election to exercise SARs shall be deemed to have been made on the date of Notice of such
election to the Company. Upon exercise of a SAR, a Participant shall be entitled to receive payment from the Company in an amount determined by multiplying:

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

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

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

     7.8. Rights as a Shareholder. A Participant receiving a SAR shall have the rights of a Shareholder only as to Shares, if
any, actually issued to such Participant upon satisfaction or achievement of the terms and conditions of the Award, and in accordance with the provisions of the Plan and the applicable Award Agreement, and not with respect to Shares to which such
Award relates but which are not actually issued to such Participant.

     7.9. Termination of Employment or Service. Each SAR Award Agreement shall set forth the extent to which the Participant
shall have the right to exercise the SAR following such Participant’s Termination, subject to Section 6.8, as applicable to any Tandem SAR. Such provisions shall be determined in the sole discretion of the Committee, need not be uniform among
all SARs issued pursuant to the Plan, and may reflect distinctions based on the reasons for Termination.

ARTICLE VIII

RESTRICTED STOCK AND RESTRICTED STOCK UNITS

     8.1. Awards of Restricted Stock and Restricted Stock Units. Subject to the terms and provisions of the Plan, the
Committee, at any time and from time to time, may grant Shares of Restricted Stock and/or Restricted Stock Units to Participants in such amounts as the Committee shall determine. Subject to the terms and conditions of this Article VIII and the Award
Agreement, upon delivery of Shares of Restricted Stock to a Participant, or creation of a book entry evidencing a Participant’s ownership of Shares of Restricted Stock, pursuant to Section 8.6, the Participant shall have all of the rights of a
shareholder with respect to such Shares, subject to the terms and restrictions set forth in this Article VIII or the applicable Award Agreement or as determined by the Committee. Restricted Stock Units shall be similar to Restricted Stock, except no
Shares are actually awarded to a Participant who is granted Restricted Stock Units on the date of grant, and such Participant shall have no rights of a shareholder with respect to such Restricted Stock Units.

     8.2. Award Agreement. Each Restricted Stock and/or Restricted Stock Unit Award shall be evidenced by an Award Agreement
that shall specify the Period of Restriction, the number of Shares of Restricted Stock or the number of Restricted Stock Units granted, and such other provisions as the Committee shall determine in accordance with the Plan. Any Restricted Stock
Award must be accepted by the Participant within a period of ninety (90) days (or such shorter period as determined by the Committee at the time of award) after the award date, by executing such Restricted Stock Award Agreement and providing the
Committee or its designee a copy of such executed Award Agreement and payment of the applicable purchase price of such Shares of Restricted Stock, if any, as determined by the Committee.

     8.3. Nontransferability of Restricted Stock. Except as provided in this Article VIII, Shares of Restricted Stock may not
be sold, transferred, pledged, assigned, encumbered, alienated, hypothecated or otherwise disposed of until the end of the applicable Period of Restriction established by the Committee and specified in the Restricted Stock Award
Agreement.

     8.4. Period of Restriction and Other Restrictions. The Period of Restriction shall lapse based on continuing service as
a Non-Employee Director or Consultant or continuing employment with the Company, a Subsidiary or an Affiliate, the achievement of performance goals, the satisfaction of other conditions or restrictions or upon the occurrence of other events, in each
case, as determined by the Committee, at its discretion, and stated in the Award Agreement. The Period of Restriction applicable to any Shares of Restricted Stock or Restricted Stock Units, which do not constitute a Substitute Award, shall not lapse
in full earlier than three (3) years from the date of grant of such Award, or, in the case of any Shares of Restricted Stock or Restricted Stock Units subject to performance-based conditions determining the entitlement to the Award or restricting
the

14

grant size, or the transfer or vesting of the Award, one (1) year from the date of grant, except in the event of the Participant’s death, Disability or Retirement or a Change of Control, or other circumstances
specified by the Committee.

     8.5. Delivery of Shares, Payment of Restricted Stock Units. Subject to Section 19.10, after the last day of the Period
of Restriction applicable to a Participant’s Shares of Restricted Stock, and after all conditions and restrictions applicable to such Shares of Restricted Stock have been satisfied or lapse (including satisfaction of any applicable withholding
tax obligations), pursuant to the applicable Award Agreement, such Shares of Restricted Stock shall become freely transferable by such Participant. After the last day of the Period of Restriction applicable to a Participant’s Restricted Stock
Units, and after all conditions and restrictions applicable to Restricted Stock Units have been satisfied or lapse (including satisfaction of any applicable withholding tax obligations), pursuant to the applicable Award Agreement, such Restricted
Stock Units shall be settled by delivery of Shares, a cash payment determined by reference to the then-current Fair Market Value of Shares or a combination of Shares and such cash payment as the Committee, in its sole discretion, shall determine,
either by the terms of the Award Agreement or otherwise.

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

     8.7. Voting Rights. Unless otherwise determined by the Committee and set forth in a Participant’s Award Agreement,
to the extent permitted or required by law, as determined by the Committee, Participants holding Shares of Restricted Stock may be granted the right to exercise full voting rights with respect to those Shares during the Period of Restriction. A
Participant shall have no voting rights with respect to any Restricted Stock Units.

     8.8. Dividends and Other Distributions. During the Period of Restriction, Participants holding Shares of Restricted
Stock shall be credited with any cash dividends paid with respect to such Shares while they are so held, unless determined otherwise by the Committee and set forth in the Award Agreement. The Committee may apply any restrictions to such dividends
that the Committee deems appropriate. Except as set forth in the Award Agreement, in the event of (a) any adjustment as provided in Section 4.2, or (b) any shares or securities are received as a dividend, or an extraordinary dividend is paid in
cash, on Shares of Restricted Stock, any new or additional Shares or securities or any extraordinary dividends paid in cash received by a recipient of Restricted Stock shall be subject to the same terms and conditions, including the Period of
Restriction, as relate to the original Shares of Restricted Stock.

15

     8.9. Termination of Employment or Service. Except as otherwise provided in this Section 8.9, during the Period of
Restriction, any Restricted Stock Units and/or Shares of Restricted Stock held by a Participant shall be forfeited and revert to the Company (or, if Shares of Restricted Sock were sold to the Participant, the Participant shall be required to resell
such Shares to the Company at cost) upon the Participant’s Termination or the failure to meet or satisfy any applicable performance goals or other terms, conditions and restrictions to the extent set forth in the applicable Award Agreement.
Each applicable Award Agreement shall set forth the extent to which, if any, the Participant shall have the right to retain Restricted Stock Units and/or Shares of Restricted Stock following such Participant’s Termination. Such provisions shall
be determined in the sole discretion of the Committee, shall be included in the applicable Award Agreement, need not be uniform among all such Awards issued pursuant to the Plan, and may reflect distinctions based on the reasons for, or
circumstances of, such Termination.

     8.10. Compliance With Section 409A. Unless the Committee provides otherwise in an Award Agreement, each Restricted Stock
Unit shall be paid in full to the Participant no later than the fifteenth day of the third month after the end of the first calendar year in which the Restricted Stock Unit is no longer subject to a “substantial risk of forfeiture” within
the meaning of Code Section 409A. If the Committee provides in an Award Agreement that a Restricted Stock Unit is intended to be subject to Code Section 409A, the Award Agreement shall include terms that are intended to satisfy the requirements of
Section 409A.

ARTICLE IX

PERFORMANCE UNITS, PERFORMANCE SHARES, AND CASH-BASED AWARDS

     9.1. Grant of Performance Units, Performance Shares and Cash-Based Awards. Subject to the terms of the Plan, Performance
Units, Performance Shares, and/or Cash-Based Awards may be granted to Participants in such amounts and upon such terms, and at any time and from time to time, as shall be determined by the Committee, in accordance with the Plan. A Performance Unit,
Performance Share or Cash-Based Award entitles the Participant who receives such Award to receive Shares or cash upon the attainment of performance goals and/or satisfaction of other terms and conditions determined by the Committee when the Award is
granted and set forth in the Award Agreement. Such entitlements of a Participant with respect to his or her outstanding Performance Unit, Performance Share or Cash-Based Award shall be reflected by a bookkeeping entry in the records of the Company,
unless otherwise provided by the Award Agreement. The terms and conditions of such Awards shall be consistent with the Plan and set forth in the Award Agreement and need not be uniform among all such Awards or all Participants receiving such
Awards.

     9.2. Value of Performance Units, Performance Shares and Cash-Based Awards. Each Performance Unit shall have an initial
value that is established by the Committee at the time of grant. Each Performance Share shall have an initial value equal to the Fair Market Value of a Share on the date of grant. Each Cash-Based Award shall have a value as shall be determined by
the Committee. The Committee shall set performance goals in its discretion which, depending on the extent to which they are met, will determine the number and/or value of Performance Units and Performance Shares and Cash-Based Awards that will be
paid out to the Participant.

     9.3. Earning of Performance Units, Performance Shares and Cash-Based Awards. Subject to the terms of the Plan, after the
applicable Performance Period has ended, the holder of Performance Units, Performance Shares or Cash-Based Awards shall be entitled to receive payment on the number and value of Performance Units, Performance Shares or Cash-Based Awards earned by
the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding performance goals and/or other terms and conditions have been achieved or satisfied. The Committee shall determine the extent to
which any such pre-established performance goals and/or other terms and conditions of a Performance Unit, Performance Share or Cash-Based Award are attained or not attained following conclusion of the applicable Performance Period. The Committee
may, in its discretion, waive any such performance goals and/or other terms and conditions relating to any such Award. No Performance Units, Performance Shares or Cash-Based Awards shall be fully earned prior to one (1) year from

16

the date of grant of any such Award, except in the event of the Participant’s death, Disability or Retirement or a Change of Control, or other circumstances specified by the Committee.

     9.4. Form and Timing of Payment of Performance Units, Performance Shares and Cash-Based Awards. Payment of earned
Performance Units, Performance Shares and Cash-Based Awards shall be as determined by the Committee and as set forth in the Award Agreement. Subject to the terms of the Plan, the Committee, in its sole discretion, may pay earned Performance Units,
Performance Shares and Cash-Based Awards in the form of cash or in Shares (or in a combination thereof) which have an aggregate Fair Market Value equal to the value of the earned Performance Units, Performance Shares or Cash-Based Awards as soon as
practicable after the end of the Performance Period and following the Committee’s determination of actual performance against the performance goals and/or other terms and conditions established by the Committee. Such Shares may be granted
subject to any restrictions imposed by the Committee, including pursuant to Section 19.10. The determination of the Committee with respect to the form of payment of such Awards shall be set forth in the Award Agreement pertaining to the grant of the
Award.

     9.5. Rights as a Shareholder. A Participant receiving a Performance Unit, Performance Share or Cash-Based Award shall
have the rights of a shareholder only as to Shares, if any, actually received by the Participant upon satisfaction or achievement of the terms and conditions of such Award and not with respect to Shares subject to the Award but not actually issued
to such Participant.

     9.6. Termination of Employment or Service. Each Award Agreement shall set forth the extent to which the Participant
shall have the right to retain Performance Units, Performance Shares and/or Cash-Based Award following such Participant’s Termination. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the
applicable Award Agreement, need not be uniform among all such Awards issued pursuant to the Plan, and may reflect distinctions based on the reasons for Termination.

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

ARTICLE X

OTHER STOCK-BASED AWARDS

     10.1. Other Stock-Based Awards. The Committee may grant types of equity-based or equity-related Awards not otherwise
described by the terms of the Plan (including the grant or offer for sale of unrestricted Shares), in such amounts (subject to Article IV) and subject to such terms and conditions, as the Committee shall determine. Such Other Stock-Based Awards may
involve the transfer of actual Shares to Participants, or payment in cash or otherwise of amounts based on the value of Shares and may include Awards designed to comply with or take advantage of the applicable local laws of jurisdictions other than
the United States.

     10.2. Value of Other Stock-Based Awards. Each Other Stock-Based Award shall be expressed in terms of Shares or units
based on Shares, as determined by the Committee. The Committee may establish performance goals in its discretion, and any such performance goals shall be set forth in the applicable Award Agreement. If the Committee exercises its discretion to
establish performance goals, the number and/or value of Other Stock-Based Awards that will be paid out to the Participant will depend on the extent to which such performance goals are met.

17

     10.3. Payment of Other Stock-Based Awards. Payment, if any, with respect to an Other Stock-Based Award shall be made in
accordance with the terms of the Award, as set forth in the Award Agreement, in cash or Shares as the Committee determines. The full vesting or lapse of restrictions and limitations applicable to any Other Stock-Based Award shall not occur more
rapidly than during the three (3) year period immediately following the date of grant of such Award, or, in the case of any Other Stock-Based Award subject to performance-based conditions determining the entitlement to the Award or restricting the
grant size, the transfer of Shares or the vesting of the Award, one (1) year from the date of grant, except in the event of the Participant’s death, Disability or Retirement or a Change of Control, or other circumstances specified by the
Committee.

     10.4. Termination of Employment or Service. The Committee shall determine the extent to which the Participant shall have
the right to receive Other Stock-Based Awards following the Participant’s Termination. Such provisions shall be determined in the sole discretion of the Committee, such provisions may be included in the applicable Award Agreement, but need not
be uniform among all Other Stock-Based Awards issued pursuant to the Plan, and may reflect distinctions based on the reasons for Termination.

     10.5. Compliance With Section 409A. Unless the Committee provides otherwise in an Award Agreement, each Other
Stock-Based Award shall be paid in full to the Participant no later than the fifteenth day of the third month after the end of the first calendar year in which the Other Stock-Based Award is no longer subject to a “substantial risk of
forfeiture” within the meaning of Code Section 409A. If the Committee provides in an Award Agreement that a Cash-Based Award or Other Stock-Based Award is intended to be subject to Code Section 409A, the Award Agreement shall include terms that
are intended to satisfy the requirements of Section 409A.

ARTICLE XI

DIVIDEND EQUIVALENTS

     11.1. Dividend Equivalents . Unless otherwise provided by the Committee, no adjustment shall be made in the Shares issuable or taken into account under Awards on account of cash dividends that may be paid or other rights
that may be issued to the holders of Shares prior to issuance of such Shares under such Award. The Committee may grant Dividend Equivalents based on the dividends declared on Shares that are subject to any Award, including any Award the payment or
settlement of which is deferred pursuant to Section 19.6. Dividend Equivalents may be credited as of the dividend payment dates, during the period between the date the Award is granted and the date the Award becomes payable or terminates or expires.
Dividend Equivalents may be subject to any limitations and/or restrictions determined by the Committee. Dividend Equivalents shall be converted to cash or additional Shares by such formula and at such time, and shall be paid at such times, as may be
determined by the Committee. Unless the Award Agreement provides otherwise, Dividend Equivalents shall be paid to the Participant at least annually, not later than the fifteenth day of the third month following the end of the calendar year in which
the Dividend Equivalents are credited (or, if later, the fifteenth day of the third month following the end of the calendar year in which the Dividend Equivalents are no longer subject to a substantial risk of forfeiture within the meaning of Code
Section 409A). Any Dividend Equivalents that are accumulated and paid after the date specified in the preceding sentence shall be explicitly set forth in a separate arrangement that provides for the payment of the dividend equivalents at a time and
in a manner that satisfies the requirements of Code Section 409A. No Dividend Equivalents shall relate to Shares underlying an Option or SAR unless such Dividend Equivalent rights are explicitly set forth as a separate arrangement and do not cause
any such Option or SAR to be subject to Code Section 409A.

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ARTICLE XII

TRANSFERABILITY OF AWARDS; BENEFICIARY DESIGNATION

     12.1. Transferability of Incentive Stock Options. No ISO or Tandem SAR granted in connection with an ISO may be sold,
transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution or in accordance with Section 12.3. Further, all ISOs and Tandem SARs granted in connection with ISOs granted to a
Participant shall be exercisable during his or her lifetime only by such Participant.

     12.2. All Other Awards. Except as otherwise provided in Section 8.5 or Section 12.3 or a Participant’s Award
Agreement or otherwise determined at any time by the Committee, no Award granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution;
provided that the Committee may permit further transferability, on a general or a specific basis, and may impose conditions and limitations on any permitted transferability, subject to Section 12.1 and any applicable Period of Restriction; provided
further, however, that no Award may be transferred for value or other consideration without first obtaining approval thereof by the shareholders of the Company. Further, except as otherwise provided in a Participant’s Award Agreement or
otherwise determined at any time by the Committee, or unless the Committee decides to permit further transferability, subject to Section 12.1 and any applicable Period of Restriction, all Awards granted to a Participant under the Plan, and all
rights with respect to such Awards, shall be exercisable or available during his or her lifetime only by or to such Participant. With respect to those Awards, if any, that are permitted to be transferred to another individual, references in the Plan
to exercise or payment related to such Awards by or to the Participant shall be deemed to include, as determined by the Committee, the Participant’s permitted transferee. In the event any Award is exercised by or otherwise paid to the
executors, administrators, heirs or distributees of the estate of a deceased Participant, or such a Participant’s beneficiary, or the transferee of an Award, in any such case, pursuant to the terms and conditions of the Plan and the applicable
Agreement and in accordance with such terms and conditions as may be specified from time to time by the Committee, the Company shall be under no obligation to issue Shares thereunder unless and until the Company is satisfied, as determined in the
discretion of the Committee, that the person or persons exercising such Award, or to receive such payment, are the duly appointed legal representative of the deceased Participant’s estate or the proper legatees or distributees thereof or the
named beneficiary of such Participant, or the valid transferee of such Award, as applicable. Any purported assignment, transfer or encumbrance of an Award that does not comply with this Section 12.2 shall be void and unenforceable against the
Company.

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

ARTICLE XIII

RIGHTS OF PARTICIPANTS

     13.1. Rights or Claims. No individual shall have any rights or claims under the Plan except in accordance with the
provisions of the Plan and any applicable Award Agreement. The grant of an Award under the Plan shall not confer any rights upon the Participant holding such Award other than such terms, and subject to such conditions, as are specified in the Plan
as being applicable to such type of Award, or to all Awards, or as are expressly set forth in the Award Agreement evidencing such Award. Without limiting the generality of the foregoing, nothing contained in the Plan or in any Award Agreement shall
be deemed to:

19

	 	
(a)      		
Give any Employee or Non-Employee Director the right to be retained in the service of the Company, an Affiliate and/or a Subsidiary, whether in any particular position, at any particular rate of compensation, for any
particular period of time or otherwise;	
	 
	 	
(b)      		
Restrict in any way the right of the Company, an Affiliate and/or a Subsidiary to terminate, change or modify any Employee’s employment or any Non-Employee Director’s service as a Director at any time with or
without Cause;	
	 
	 	
(c)      		
Confer on any Consultant any right of continued relationship with the Company, an Affiliate and/or a Subsidiary, or alter any relationship between them, including any right of the Company or an Affiliate or Subsidiary to
terminate, change or modify its relationship with a Consultant;	
	 
	 	
(d)      		
Give any Employee, Non-Employee Director or Consultant the right to receive any bonus, whether payable in cash or in Shares, or in any combination thereof, from the Company, an Affiliate and/or a Subsidiary, nor be
construed as limiting in any way the right of the Company, an Affiliate and/or a Subsidiary to determine, in its sole discretion, whether or not it shall pay any Employee, Non-Employee Director or Consultant bonuses, and, if so paid, the amount
thereof and the manner of such payment; or	
	 
	 	
(e)      		
Give any Participant any rights whatsoever with respect to an Award except as specifically provided in the Plan and the Award Agreement.	

     13.2. Adoption of the Plan. The adoption of the Plan shall not be deemed to give any Employee, Non-Employee Director or
Consultant or any other individual any right to be selected as a Participant or to be granted an Award, or, having been so selected, to be selected to receive a future Award.

     13.3. Vesting. Notwithstanding any other provision of the Plan, a Participant’s right or entitlement to exercise or
otherwise vest in any Award not exercisable or vested at the time of grant shall only result from continued services as a Non-Employee Director or Consultant or continued employment, as the case may be, with the Company or any Subsidiary or
Affiliate, or satisfaction of any other performance goals or other conditions or restrictions applicable, by its terms, to such Award.

     13.4. No Effects on Benefits. Payments and other compensation received by a Participant under an Award are not part of
such Participant’s normal or expected compensation or salary for any purpose, including calculating termination, indemnity, severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension or retirement
benefits or similar payments under any laws, plans, contracts, arrangements or otherwise. No claim or entitlement to compensation or damages arises from the termination of the Plan or diminution in value of any Award or Shares purchased or otherwise
received under the Plan.

     13.5. One or More Types of Awards. A particular type of Award may be granted to a Participant either alone or in
addition to other Awards under the Plan.

ARTICLE XIV

CHANGE OF CONTROL

     14.1. Treatment of Outstanding Awards. In the event of a Change of Control, unless otherwise specifically prohibited by
any applicable laws, rules or regulations or otherwise provided in any applicable Award Agreement, as in effect prior to the occurrence of the Change of Control, specifically with respect to a Change of Control:

	
    (a)	Immediately prior
        to the occurrence of such Change of Control, any and all Options, SARs
        and Other Stock-Based Awards (if applicable) which are outstanding shall
        immediately become fully exercisable as to all Shares covered thereby,
        notwithstanding anything to the contrary in the Plan or the Award Agreement,
        and, in the event of a Participant’s Termination (including termination
    of employment or services with any successor of the Company, a Subsidiary

20

	          
    	or an Affiliate) under any circumstances during
        the one year period following the Change of Control, all Options, SARs
        and Other Stock-Based Awards (if applicable) held by such Participant
        (or such Participant’s beneficiary or transferee) shall remain exercisable
        at least until the first anniversary of such Termination or the expiration
    of the term of such Option, SAR or Other Stock-Based Award, if earlier.
	      
    	 
	      
    (b)	Immediately prior to the occurrence of such
        Change of Control, any restrictions, performance goals or other conditions
        applicable to Restricted Stock Units, Shares of Restricted Stock and
        Other Stock-Based Awards previously awarded to Participants shall be
        immediately canceled or deemed achieved, the Period of Restriction applicable
        thereto shall immediately terminate, and all restrictions on transfer,
        sale, assignment, pledge or other disposition applicable to any such
        Shares of Restricted Stock shall immediately lapse, notwithstanding anything
    to the contrary in the Plan or the Award Agreement.
	      
    	 
	      
    (c)	Immediately prior to the occurrence of such
        Change of Control, all Awards which are outstanding shall immediately
    become fully vested and nonforfeitable.
	      
    	 
	      
    (d)	The target payment opportunities attainable
        under any outstanding Awards of Performance Units, Performance Shares,
        Cash-Based Awards and other Awards shall be deemed to have been fully
        earned for the entire Performance Period(s) immediately prior to the
        effective date of the Change of Control, unless actual performance exceeds
        the target, in which case actual performance shall be used. There shall
        be paid out to each Participant holding such an Award denominated in
        Shares, not later than five (5) days prior to the effective date of the
        Change of Control, a pro rata number of Shares (or the equivalent Fair
        Market Value thereof, as determined by the Committee, in cash) based
        upon an assumed achievement of all relevant targeted performance goals,
        unless actual performance exceeds the target, in which case actual performance
        shall be used, and upon the length of time within the Performance Period
        which has elapsed prior to the Change of Control. Awards denominated
        in cash shall be paid pro rata to
        applicable Participants in cash within thirty (30) days following the
        effective date of the Change of Control, with the pro-ration determined
        as a function of the length of time within the Performance Period which
        has elapsed prior to the Change of Control, and based on an assumed achievement
        of all relevant targeted performance goals, unless actual performance
    exceeds the target, in which case actual performance shall be used.
	      
    	 
	      
    (e)	Any Award the payment or settlement of which
        was deferred under Section 19.6 or otherwise shall be paid or distributed
        immediately prior to the Change of Control, except as otherwise provided
    by the Committee in accordance with Section 14.1(f) .
	      
    	 
	      
    (f)	In its discretion, and on such terms and conditions
        as it deems appropriate, the Committee may provide, either by the terms
        of the Award Agreement applicable to any Award or by resolution adopted
        prior to the occurrence of the Change of Control, that any outstanding
        Award shall be adjusted by substituting for each Share subject to such
        Award immediately prior to the transaction resulting in the Change of
        Control the consideration (whether stock or other securities of the surviving
        corporation or any successor corporation to the Company, or a parent
        or subsidiary thereof, or that may be issuable by another corporation
        that is a party to the transaction resulting in the Change of Control)
        received in such transaction by holders of Shares for each Share held
        on the closing or effective date of such transaction, in which event
        the aggregate Option Price or Grant Price, as applicable, of the Award
        shall remain the same; provided,
        however, that if such consideration
        received in such transaction is not solely stock of a successor, surviving
        or other corporation, the Committee may provide for the consideration
        to be received upon exercise or payment of an Award, for each Share subject
        to such Award, to be solely stock or other securities of the successor,
        surviving or other corporation, as applicable, equal in fair market value,
        as determined by the Committee, to the per-Share consideration received
    by holders of Shares in such transaction.

21

	
      (g)
    	In its discretion, and on such terms and conditions
        as it deems appropriate, the Committee may provide, either by the terms
        of the Award Agreement applicable to any Award or by resolution adopted
        prior to the occurrence of the Change of Control, that any outstanding
        Award (or portion thereof) shall be converted into a right to receive
        cash, on or as soon as practicable following the closing date or expiration
        date of the transaction resulting in the Change of Control in an amount
        equal to the highest value of the consideration to be received in connection
        with such transaction for one Share, or, if higher, the highest Fair
        Market Value of a Share during the thirty (30) consecutive business days
        immediately prior to the closing date or expiration date of such transaction,
        less the per-Share Option Price, Grant Price or outstanding unpaid purchase
        price, as applicable to the Award, multiplied by the number of Shares
    subject to such Award, or the applicable portion thereof.
	
    	 
	
      (h)
    	The Committee may, in its discretion, provide
        that an Award can or cannot be exercised after, or will otherwise terminate
    or not terminate as of, a Change of Control.

     14.2. No Implied Rights; Other Limitations. No Participant shall have any right to prevent the consummation of any of
the acts described in Section 4.2 or 14.1 affecting the number of Shares available to, or other entitlement of, such Participant under the Plan or such Participant’s Award. Any actions or determinations of the Committee under this Article XVI
need not be uniform as to all outstanding Awards, nor treat all Participants identically. Notwithstanding the adjustments described in Section 14.1, in no event may any Option or SAR be exercised after ten (10) years from the date it was originally
granted, and any changes to ISOs pursuant to this Article XIV shall, unless the Committee determines otherwise, only be effective to the extent such adjustments or changes do not cause a “modification” (within the meaning of Section
424(h)(3) of the Code) of such ISOs or adversely affect the tax status of such ISOs.

     14.3. Termination, Amendment, and Modifications of Change of Control Provisions. Notwithstanding any other provision of
the Plan (but subject to the limitations of Section 14.1(h), the last sentence of Section 15.1 and Section 15.2) or any Award Agreement provision, the provisions of this Article XIV may not be terminated, amended, or modified on or after the date of
a Change of Control to materially impair any Participant’s Award theretofore granted and then outstanding under the Plan without the prior written consent of such Participant.

     14.4. Compliance with Section 409A. Notwithstanding any other provisions of the Plan or any Award Agreement to the
contrary, if a Change of Control that is not a Qualified Change of Control occurs, and payment or distribution of an Award constituting deferred compensation subject to Section 409A of the Code would otherwise be made or commence on the date of such
Change of Control (pursuant to the Plan, the Award Agreement or otherwise), (a) the vesting of such Award shall accelerate in accordance with the Plan and the Award Agreement, (b) such payment or distribution shall not be made or commence prior to
the earliest date on which Code Section 409A permits such payment or distribution to be made or commence without additional taxes or penalties under Section 409A, and (c) in the event any such payment or distribution is deferred in accordance with
the immediately preceding clause (b), such payment or distribution that would have been made prior to the deferred payment or commencement date, but for Code Section 409A, shall be paid or distributed on such earliest payment or commencement date,
together, if determined by the Committee, with interest at the rate established by the Committee. The Committee shall not extend the period to exercise an Option or Stock Appreciation Right to the extent that such extension would cause the Option or
Stock Appreciation Right to become subject to Code Section 409A. Additionally, the Committee shall not take any action pursuant to this Article XIV that would cause an Award that is otherwise exempt from Code Section 409A to become subject to Code
Section 409A, or that would cause an Award that is subject to Code Section 409A to fail to satisfy the requirements of Code Section 409A.

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ARTICLE XV

AMENDMENT, MODIFICATION, AND TERMINATION

     15.1. Amendment, Modification, and Termination. The Board may, at any time and with or without prior notice, amend,
alter, suspend, or terminate the Plan, and the Committee may, to the extent permitted by the Plan, amend the terms of any Award theretofore granted, including any Award Agreement, in each case, retroactively or prospectively; provided, however, that no such amendment, alteration, suspension, or termination of the Plan shall be made which, without first obtaining approval of the shareholders of the Company (where such
approval is necessary to satisfy (i) the then-applicable requirements of Rule 16b-3, (ii) any requirements under the Code relating to ISOs, or (iii) any applicable law, regulation or rule (including the applicable regulations and rules of the SEC
and any national securities exchange)), would:

	 	
(a)      		
Except as is provided in Section 4.2, increase the maximum
number of Shares which may be sold or awarded under the Plan;	
	 
	 	
(b)      		
Except as is provided in Section 4.2, decrease the minimum Option Price or Grant Price requirements of Sections 6.3 and 7.2, respectively;	
	 
	 	
(c)      		
Change the class of persons eligible to receive Awards under the Plan;	
	 
	 	
(d)      		
Extend the duration of the Plan or the period during which Options or SARs may be exercised under Section 6.4 or 7.6, as applicable; or	
	 
	 	
(e)      		
Otherwise require shareholder approval to comply with any applicable law, regulation or rule (including the applicable regulations and rules of the SEC and any national securities exchange).	

     In addition, (A) no such amendment, alteration, suspension or termination of the Plan or any Award theretofore granted, including any Award Agreement, shall be made which would materially
impair the previously accrued rights of a Participant under any outstanding Award without the written consent of such Participant, provided, however, that the Board may amend
or alter the Plan and the Committee may amend or alter any Award, including any Agreement, either retroactively or prospectively, without the consent of the applicable Participant, (x) so as to preserve or come within any exemptions from liability
under Section 16(b) of the Exchange Act, pursuant to the rules and releases promulgated by the SEC (including Rule 16b-3), or (y) if the Board or the Committee determines in its discretion that such amendment or alteration either (I) is required or
advisable for the Company, the Plan or the Award to satisfy, comply with or meet the requirements of any law, regulation, rule or accounting standard or (II) is not reasonably likely to significantly diminish the benefits provided under such Award,
or that such diminishment has been or will be adequately compensated, and (B) except as is provided in Section 4.2, but notwithstanding any other provisions of the Plan, neither the Board nor the Committee may take any action: (1) to amend the terms
of an outstanding Option or SAR to reduce the Option Price or Grant Price thereof, cancel an Option or SAR and replace it with a new Option or SAR with a lower Option Price or Grant Price, or that has an economic effect that is the same as any such
reduction or cancellation; (2) to cancel an outstanding Option or SAR having an Option Price or Grant Price above the then-current Fair Market Value of the Shares in exchange for the grant of another type of Award or (3) to amend the minimum
exercisability or vesting provisions of Sections 6.5, 7.4, 8.4, 9.3 and 10.3 to shorten or decrease such provisions, without, in each such case, first obtaining approval of the shareholders of the Company of such action.

     15.2. Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events. The Board or the Committee may
make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events (including the events described in Section 4.2) affecting the Company or the financial statements of the Company
or of changes in applicable laws, regulations, or accounting principles, whenever the Committee determines that such adjustments are appropriate in order to prevent unintended dilution or enlargement of the benefits or potential benefits intended to
be made available under the Plan. Any such adjustment with respect to an Award intended to be an ISO shall be made only to the extent consistent with such intent, unless the Board or the Committee determines otherwise. Additionally,

23

neither the Board nor the Committee shall not make any adjustment pursuant to this Article XV that would cause an Award that is otherwise exempt from Code Section 409A to become subject to Code Section 409A, or that would
cause an Award that is subject to Code Section 409A to fail to satisfy the requirements of Code Section 409A. The determination of the Committee as to the foregoing adjustments, if any, shall be conclusive and binding on Participants under the
Plan.

ARTICLE XVI

TAX WITHHOLDING AND OTHER TAX MATTERS

     16.1. Tax Withholding. The Company and/or any Subsidiary or Affiliate are authorized to withhold from any Award granted
or payment due under the Plan the amount of all Federal, state, local and non-United States taxes due in respect of such Award or payment and take any such other action as may be necessary or appropriate, as determined by the Committee, to satisfy
all obligations for the payment of such taxes. The recipient of any payment or distribution under the Plan shall make arrangements satisfactory to the Company, as determined in the Committee’s discretion, for the satisfaction of any tax
obligations that arise by reason of any such payment or distribution. The Company shall not be required to make any payment or distribution under or relating to the Plan or any Award until such obligations are satisfied or such arrangements are
made, as determined by the Committee in its discretion.

     16.2. Withholding or Tendering Shares. Without limiting the generality of Section 16.1, the Committee may in its
discretion permit a Participant to satisfy or arrange to satisfy, in whole or in part, the tax obligations incident to an Award by: (a) electing to have the Company withhold Shares or other property otherwise deliverable to such Participant pursuant
to his or her Award (provided, however, that the amount of any Shares so withheld shall not exceed the amount necessary to satisfy required Federal, state, local and non-United
States withholding obligations using the minimum statutory withholding rates for Federal, state, local and/or non-U.S. tax purposes, including payroll taxes, that are applicable to supplemental taxable income) and/or (b) tendering to the Company
Shares owned by such Participant (or by such Participant and his or her spouse jointly) and purchased or held for the requisite period of time as may be required to avoid the Company’s or the Affiliates’ or Subsidiaries’ incurring an
adverse accounting charge, based, in each case, on the Fair Market Value of the Shares on the payment date as determined by the Committee. All such elections shall be irrevocable, made in writing, signed by the Participant, and shall be subject to
any restrictions or limitations that the Committee, in its sole discretion, deems appropriate.

     16.3. Restrictions. The satisfaction of tax obligations pursuant to this Article XVI shall be subject to such
restrictions as the Committee may impose, including any restrictions required by applicable law or the rules and regulations of the SEC, and shall be construed consistent with an intent to comply with any such applicable laws, rule and
regulations.

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

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

24

     16.6. No Guarantee of Favorable Tax Treatment. Although the Company intends to administer the Plan so that Awards will
be exempt from, or will comply with, the requirements of Code Section 409A, the Company does not warrant that any Award under the Plan will qualify for favorable tax treatment under Code Section 409A or any other provision of federal, state, local,
or non-United States law. The Company shall not be liable to any Participant for any tax, interest, or penalties the Participant might owe as a result of the grant, holding, vesting, exercise, or payment of any Award under the Plan.

ARTICLE XVII

LIMITS OF LIABILITY; INDEMNIFICATION

     17.1. Limits of Liability.

	 	 (a)      	Any liability of the Company or a Subsidiary or Affiliate to any Participant with respect to any Award shall be based solely upon contractual obligations created by the Plan and the Award Agreement.
	 
	 	 (b)      	None of the Company, any Subsidiary, any Affiliate, any member of the Board or the Committee or any other person participating in any determination of any question under the Plan, or in the interpretation, administration or application of the Plan, shall have any liability, in the absence of bad faith, to any party for any action taken or not taken in connection with the Plan, except as may expressly be provided by statute.
	 
	 	 (c)      	Each member of the Committee, while serving as such, shall be considered to be acting in his or her capacity as a director of the Company. Members of the Board of Directors and members of the Committee acting under the Plan shall be fully protected in relying in good faith upon the advice of counsel and shall incur no liability except for gross negligence or willful misconduct in the performance of their duties.
	 
	 	 (d)      	The Company shall not be liable to a Participant or any other person as to: (i) the non-issuance of Shares as to which the Company has been unable to obtain from any regulatory body having relevant jurisdiction the authority deemed by the Committee or the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, and (ii) any tax consequence expected, but not realized, by any Participant or other person due to the receipt, exercise or settlement of any Option or other Award.
	 

     17.2. Indemnification. Subject to the requirements of Marshall Islands law, each individual who is or shall have been a
member of the Committee or of the Board, or an officer of the Company to whom authority was delegated in accordance with Article III, shall be indemnified and held harmless by the Company against and from any loss, cost, liability, or expense that
may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to
act under the Plan and against and from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such action, suit, or proceeding against him or her,
provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her
own behalf, unless such loss, cost, liability, or expense is a result of the individual’s own willful misconduct or except as provided by statute. The foregoing right of indemnification shall not be exclusive of any other rights of
indemnification to which such individual may be entitled under the Company’s Certificate of Incorporation or By-Laws, as a matter of law, or otherwise, or any power that the Company may have to indemnify or hold harmless such
individual.

25

ARTICLE XVIII 

SUCCESSORS

     18.1. General. All obligations of the Company under the Plan with respect to Awards granted hereunder shall be binding
on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company.

ARTICLE XIX 

MISCELLANEOUS

     19.1. Drafting Context. Except where otherwise indicated by the context, any masculine term used herein also shall
include the feminine; the plural shall include the singular and the singular shall include the plural. The words “Article,” “Section,” and “paragraph” herein shall refer to provisions of the Plan, unless expressly
indicated otherwise. The words “include,” “includes,” and “including” herein shall be deemed to be followed by “without limitation” whether or not they are in fact followed by such words or words of similar
import, unless the context otherwise requires.

     19.2. Forfeiture Events.

		(a)       		Notwithstanding any provision of the Plan to
        the contrary, the Committee shall have the authority to determine (and
        may so provide in any Agreement) that a Participant’s (including
        his or her estate’s, beneficiary’s or transferee’s) rights
        (including the right to exercise any Option or SAR), payments and benefits
        with respect to any Award shall be subject to reduction, cancellation,
        forfeiture or recoupment in the event of the Participant’s Termination
        for Cause or due to voluntary resignation; serious misconduct; violation
        of the Company’s or a Subsidiary’s or Affiliate’s policies;
        breach of fiduciary duty; unauthorized disclosure of any trade secret
        or confidential information of the Company or a Subsidiary or Affiliate;
        breach of applicable noncompetition, nonsolicitation, confidentiality
        or other restrictive covenants; or other conduct or activity that is
        in competition with the business of the Company or any Subsidiary or
        Affiliate, or otherwise detrimental to the business, reputation or interests
        of the Company and/or any Subsidiary or Affiliate; or upon the occurrence
        of certain events specified in the applicable Award Agreement (in any
        such case, whether or not the Participant is then an Employee, Non-Employee
        Director or Consultant). The determination of whether a Participant’s
        conduct, activities or circumstances are described in the immediately
        preceding sentence shall be made by the Committee in its good faith discretion,
        and pending any such determination, the Committee shall have the authority
        to suspend the exercise, payment, delivery or settlement of all or any
        portion of such Participant’s outstanding Awards pending an investigation
    of the matter.
		 	 
		(b)       		If the Company is required to prepare an accounting
        restatement due to the material noncompliance of the Company, as a result
        of misconduct, with any financial reporting requirement under the securities
        laws, if the Participant knowingly or grossly negligently engaged in
        the misconduct, or knowingly or grossly negligently failed to prevent
        the misconduct, or if the Participant is one of the individuals subject
        to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of
        2002, the Participant shall reimburse the Company the amount of any payment
        in settlement of an Award earned or accrued during the twelve- (12-)
        month period following the first public issuance or filing with the SEC
        (whichever just occurred) of the financial document embodying such financial
    reporting requirement.

     19.3. Severability. In the event any provision of the Plan shall be held illegal or invalid for any reason, the
illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

     19.4. Transfer, Leave of Absence. For purposes of the Plan, a transfer of an Employee from the Company to an Affiliate
or Subsidiary (or, for purposes of any ISO granted under the Plan, only a Subsidiary), or vice versa, or from one Affiliate or

26

Subsidiary to another (or in the case of an ISO, only from one Subsidiary to another), and a leave of absence, duly authorized in writing by the Company or a Subsidiary or Affiliate, shall not be deemed a Termination of the
Employee for purposes of the Plan or with respect to any Award (in the case of ISOs, to the extent permitted by the Code). The Committee shall have the discretion to determine the effects upon any Award, upon an individual’s status as an
Employee, Non-Employee Director or Consultant for purposes of the Plan (including whether a Participant shall be deemed to have experienced a Termination or other change in status) and upon the exercisability, vesting, termination or expiration of
any Award in the case of: (a) any Participant who is employed by an entity that ceases to be an Affiliate or Subsidiary (whether due to a spin-off or otherwise), (b) any transfer of a Participant between locations of employment with the Company, an
Affiliate, and/or Subsidiary or between the Company, an Affiliate or Subsidiary or between Affiliates or Subsidiaries, (c) any leave of absence of a Participant, (d) any change in a Participant’s status from an Employee to a Consultant or a
Non-Employee Director, or vice versa; and (e) upon approval by the Committee, any Employee who experiences a Termination but becomes employed by a partnership, joint venture, corporation or other entity not meeting the requirements of an Affiliate
or Subsidiary, subject, in each case, to the requirements of Code Section 422 applicable to any ISOs and Code Section 409A applicable to any Options and SARs.

     19.5. Exercise and Payment of Awards. An Award shall be deemed exercised or claimed when the Secretary of the Company or
any other Company official or other person designated by the Committee for such purpose receives appropriate written notice from a Participant, in form acceptable to the Committee, together with payment of the applicable Option Price, Grant Price or
other purchase price, if any, and compliance with Article XVI, in accordance with the Plan and such Participant’s Award Agreement.

     19.6. Deferrals. To the extent provided in the Award Agreement, the Committee may permit or require a Participant to
defer such Participant’s receipt of the payment of cash or the delivery of Shares that would otherwise be due to such Participant by virtue of the lapse or waiver of the Period of Restriction or other restrictions with respect to Restricted
Stock or the payment or satisfaction of Restricted Stock Units, Performance Units, Performance Shares, Cash-Based Awards or Other Stock-Based Awards. If any such deferral election is required or permitted, (a) such deferral shall represent an
unfunded and unsecured obligation of the Company and shall not confer the rights of a shareholder unless and until Shares are issued thereunder; (b) the number of Shares subject to such deferral shall, until settlement thereof, be subject to
adjustment pursuant to Section 4.2; and (c) the Committee shall establish rules and procedures for such deferrals and payment or settlement thereof, which may be in cash, Shares or any combination thereof, and such deferrals may be governed by the
terms and conditions of any deferred compensation plan of the Company or Affiliate specified by the Committee for such purpose. Notwithstanding any provisions of the Plan to the contrary, in no event shall any deferral under this Section 19.6 be
permitted if the Committee determines that such deferral would result in the imposition of additional tax under Code Section 409A of the Code.

     19.7. Loans. The Company may, in the discretion of the Committee, extend one or more loans to Participants in connection
with the exercise or receipt of an Award granted to any such Participant; provided, however, that the Company shall not extend loans to any Participant if prohibited by law or
the rules of any stock exchange or quotation system on which the Company’s securities are listed. The terms and conditions of any such loan shall be established by the Committee.

     19.8. No Effect on Other Plans. Neither the adoption of the Plan nor anything contained herein shall affect any other
compensation or incentive plans or arrangements of the Company or any Subsidiary or Affiliate, or prevent or limit the right of the Company or any Subsidiary or Affiliate to establish any other forms of incentives or compensation for their
directors, officers, eligible employees or consultants or grant or assume options or other rights otherwise than under the Plan.

     19.9. Section 16 of Exchange Act. Unless otherwise stated in the Award Agreement, notwithstanding any other provision of
the Plan, any Award granted to an Insider shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including Rule 16b-3) that are requirements for the application of such
exemptive rule, and the Plan and the Award Agreement shall be deemed amended to the extent necessary to conform to such limitations.

27

     19.10. Requirements of Law; Limitations on Awards.

		(a)       		The granting of Awards and the issuance of
        Shares under the Plan shall be subject to all applicable laws, rules,
        and regulations, and to such approvals by any governmental agencies or
    national securities exchanges as may be required.
		 	 
		(b)       		If at any time the Committee shall determine,
        in its discretion, that the listing, registration and/or qualification
        of Shares upon any securities exchange or under any state, Federal or
        non-United States law, or the consent or approval of any governmental
        regulatory body, is necessary or desirable as a condition of, or in connection
        with, the sale or purchase of Shares hereunder, the Company shall have
        no obligation to allow the grant, exercise or payment of any Award, or
        to issue or deliver evidence of title for Shares issued under the Plan,
        in whole or in part, unless and until such listing, registration, qualification,
        consent and/or approval shall have been effected or obtained, or otherwise
    provided for, free of any conditions not acceptable to the Committee.
		 	 
		(c)       		 If at any time counsel to the Company
        shall be of the opinion that any sale or delivery of Shares pursuant
        to an Award is or may be in the circumstances unlawful or result in the
        imposition of excise taxes on the Company or any Subsidiary or Affiliate
        under the statutes, rules or regulations of any applicable jurisdiction,
        the Company shall have no obligation to make such sale or delivery, or
        to make any application or to effect or to maintain any qualification
        or registration under the Securities Act, or otherwise with respect to
        Shares or Awards and the right to exercise or payment of any Option or
        Award shall be suspended until, in the opinion of such counsel, such
        sale or delivery shall be lawful or will not result in the imposition
    of excise taxes on the Company or any Subsidiary or Affiliate.
		 	 
		(d)       		Upon termination of any period of suspension
        under this Section 19.10, any Award affected by such suspension which
        shall not then have expired or terminated shall be reinstated as to all
        Shares available before such suspension and as to the Shares which would
        otherwise have become available during the period of such suspension,
    but no suspension shall extend the term of any Award.
		 	 
		(e)       		The Committee may require each person receiving
        Shares in connection with any Award under the Plan to represent and agree
        with the Company in writing that such person is acquiring such Shares
        for investment without a view to the distribution thereof, and/or provide
        such other representations and agreements as the Committee may prescribe.
        The Committee, in its absolute discretion, may impose such restrictions
        on the ownership and transferability of the Shares purchasable or otherwise
        receivable by any person under any Award as it deems appropriate. Any
        such restrictions shall be set forth in the applicable Award Agreement,
        and the certificates evidencing such shares may include any legend that
        the Committee deems appropriate to reflect any such restrictions.

		 	 
		(f)       		An Award and any Shares received upon the exercise
        or payment of an Award shall be subject to such other transfer and/or
        ownership restrictions and/or legending requirements as the Committee
        may establish in its discretion and may be referred to on the certificates
        evidencing such Shares, including restrictions under applicable Federal
        securities laws, under the requirements of any stock exchange or market
        upon which such Shares are then listed and/or traded, and under any blue
    sky or state securities laws applicable to such Shares.

     19.11. Participants Deemed to Accept Plan. By accepting any benefit under the Plan, each Participant and each person
claiming under or through any such Participant shall be conclusively deemed to have indicated their acceptance and ratification of, and consent to, all of the terms and conditions of the Plan and any action taken under the Plan by the Board, the
Committee or the Company, in any case in accordance with the terms and conditions of the Plan.

     19.12. Governing Law. Except as to matters concerning the issuance of Shares or other matters of corporate governance,
which shall be determined, and related Plan and Award provisions shall be construed, under the laws of the Marshall Islands, the Plan and each Award Agreement shall be governed by the laws of the State of New York, excluding any conflicts or choice
of law rule or principle that might otherwise refer construction or interpretation of the Plan to the substantive law of another

28

jurisdiction. Unless otherwise provided in the Award Agreement, Participants are deemed to submit to the exclusive jurisdiction and venue of the federal or state courts of the State of New York, to resolve any and all
issues that may arise out of or relate to the Plan or any related Award Agreement.

     19.13. Plan Unfunded. The Plan shall be unfunded. The Company shall not be required to establish any special or separate
fund or to make any other segregation of assets to assure the issuance of Shares or the payment of cash upon exercise or payment of any Award. Proceeds from the sale of Shares pursuant to Options or other Awards granted under the Plan shall
constitute general funds of the Company.

     19.14. Administration Costs. The Company shall bear all costs and expenses incurred in administering the Plan, including
expenses of issuing Shares pursuant to any Options or other Awards granted hereunder.

     19.15. Uncertificated Shares. To the extent that the Plan provides for issuance of certificates to reflect the transfer
of Shares, the transfer of such Shares may nevertheless be effected on a noncertificated basis, to the extent not prohibited by applicable law or the rules of any stock exchange.

     19.16. No Fractional Shares. An Option or other Award shall not be exercisable with respect to a fractional Share or the
lesser of fifty (50) shares or the full number of Shares then subject to the Option or other Award. No fractional Shares shall be issued upon the exercise or payment of an Option or other Award.

     19.17. Deferred Compensation. If any Award would be considered deferred compensation as defined under Code Section 409A
and would fail to meet the requirements of Code Section 409A, then such Award shall be null and void; provided, however, that the Committee may permit deferrals of compensation
pursuant to the terms of a Participant’s Award Agreement, a separate plan, or a subplan which (in each case) meets the requirements of Code Section 409A. Additionally, to the extent any Award is subject to Code Section 409A, notwithstanding any
provision herein to the contrary, the Plan does not permit the acceleration of the time or schedule of any distribution related to such Award, except as permitted by Code Section 409A.

     19.18. Participants Based Outside of the United States. Notwithstanding any provision of the Plan to the contrary, in
order to comply with the laws or practices of countries other than the United States in which the Company, any Affiliate, and/or any Subsidiary operates or has Employees, Non-Employee Directors or Consultants, the Committee, in its sole discretion,
shall have the power and authority to:

	 	
(a)      		
Determine which Affiliates and Subsidiaries shall be covered by the Plan;	
	 
	 	
(b)      		
Determine which Employees, Non-Employee Directors and/or Consultants outside the United States are eligible to participate in the Plan;	
	 
	 	
(c)      		
Grant Awards (including substitutes for Awards), and modify the terms and conditions of any Awards, on such terms and conditions as the Committee determines necessary or appropriate to permit participation in the Plan by
individuals otherwise eligible to so participate who are non-United States nationals or employed outside the United States, or otherwise to comply with applicable non-United States laws or conform to applicable requirements or practices of
jurisdictions outside the United States;	
	 
	 	
(d)      		
Establish subplans and adopt or modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable. Any subplans and modifications to Plan terms and procedures established
under this Section 19.18 by the Committee shall be attached to the Plan as appendices; and	
	 
	 	
(e)      		
Take any action, before or after an Award is made, that the Committee, in its discretion, deems advisable to obtain approval or comply with any necessary local government regulatory exemptions or approvals.	
	 

29

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

* * *
 

 

30exv4w35

 

Exhibit 4.35

Stock
Subscription Agreement

Biokeys
Pharmaceuticals, Inc.

9948 Hibert Street, Suite 100

San Diego, CA 92131

This
letter represents an agreement between the undersigned (the
“Investor”) and Biokeys
Pharmaceuticals, Inc., a Delaware corporation (the “Company”), related to the Investor’s offer to
purchase shares of the Company’s Common Stock, par value $0.001
per share (“Common
Stock”).

1.
Subscription. Subject to the terms and conditions hereof, the Investor hereby
irrevocably subscribes for and agrees to purchase shares of Common
Stock (the “Subscription ”)
as follows:

	 	 	 	 	 	 	 
	 

	 	Investor’s name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	(Exact name as it should appear
on the stock certificate.)
	 	 
	 
	 	 	 	 	 	 
	 	 	Price per share of
Common Stock (the “Purchase Price”): Forty Cents ($0.40)	 	 
	 
	 	 	 	 	 	 
	 

	 	Number of shares of Common Stock:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Total Purchase Price:	 	 	 	 
	 

	 	 	 	 	 	 

In consideration of the issuance of the number of shares of Common Stock listed above (the
“Shares”), the Investor tenders herewith a wire transfer to the account of the Company
transmitted pursuant to the wire instructions attached hereto as
Exhibit A in the aggregate amount
of the Total Purchase Price listed above.

2.
Acceptance of Subscription. The Investor understands and agrees that this Subscription
is made subject to the unconditional right of the Company to reject this Subscription, in whole or
in part, in its sole and absolute discretion. This Agreement shall become effective upon
acceptance by the Company (the “Acceptance Date”). Any interest earned on funds sent to the
Company pursuant to Section 1 hereof will be for the account of the Company if the Subscription
is accepted. This Subscription is made subject to the terms and conditions set forth below.

3.
Representations and Warranties of the Investor.

(a) Exempt
Transaction; Unregistered Shares. The Investor understands that the
Shares are being offered and sold under one or more exemptions from registration provided
for under the Securities Act of 1933, as amended (the
“Securities Act”), and that the
Company’s reliance upon such exemptions is predicated, in part, upon the Investor’s
representations and warranties set forth in this Agreement. The Investor acknowledges that it
is purchasing the Shares without being offered or furnished any offering literature or
prospectus. The Investor understands that neither the United States Securities and Exchange
Commission, nor any governmental agency charged with the administration of the securities
laws of any state nor any other governmental agency has passed upon or reviewed the merits

 

 

or qualifications of, or recommended or approved the offer and sale of the Shares pursuant to
the terms of this Agreement.

(b) Investment Intent; Accreditation; Authority. The Investor is acquiring the
Shares for investment for the Investor’s own account, not as nominee or agent, for
investment and not with a view to, or for resale in connection with, any distribution or public
offering thereof within the meaning of the Securities Act. The Investor is an “accredited
investor” within the meaning of the Securities Act. The Investor has the full right, power,
authority and capacity to enter into and perform this Agreement, the
terms of this Agreement
constitute valid and binding obligations of the Investor enforceable in accordance with their
terms, except as the same may be limited by equitable principles and by bankruptcy,
insolvency, moratorium, and other laws of general application affecting the enforcement of
creditors’ rights.

(c) Knowledge and Experience. The Investor (i) has such knowledge and
experience in financial and business matters as to be capable of evaluating the merits and
risks of the Investor’s prospective investment in the Shares; (ii) has the ability to bear the
economic risks of the Investor’s prospective investment; (iii) has been furnished with and has
had access to such information as the Investor has considered necessary to make a
determination as to the purchase of the Shares together with such additional information as is
necessary to verify the accuracy of the information supplied; and (iv) has had all questions
which have been asked by Investor satisfactorily answered by the Company.

(d) Restricted Securities. The Investor understands that the Shares are “restricted
securities” as such term is defined in Rule 144 of Regulation D promulgated under the
Securities Act (“Rule 144”) and must be held indefinitely unless they are subsequently
registered under applicable state and federal Securities laws or an exemption from such registration is available. The Investor understands that he, she or it may resell the Shares pursuant
to Rule 144 only after the satisfaction of certain requirements, including the requirement that
the Shares be held for at least one year prior to resale.

(e) No Obligation to Register Shares. The Investor further acknowledges and
understands that, except as provided in Section 7 of this Agreement, the Company is under
no obligation to register the Shares. The Investor understands that the certificate evidencing
the Shares will be imprinted with a legend which prohibits the transfer of the Shares unless
they are registered or such registration is not required in the opinion of counsel for the
Company.

(I) Investor Questionnaire. The Investor agrees to complete, execute and deliver to
the Company with this executed Agreement a copy of the Investor Suitability Questionnaire
attached hereto as Exhibit B, the terms of which are incorporated herein.

(g) Foreign Investor Representation. If the Investor is not a “U.S. person” (as such
term is defined in Rule 902(k) of Regulation S promulgated under the Securities Act), such
Investor hereby represents that it has satisfied itself as to the full observance of the laws of
its jurisdiction in connection with any invitation to subscribe for the Shares or any use of this
Agreement, including (i) the legal requirements within its jurisdiction for the purchase of the

 

 

Shares, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any
governmental or other consents that may need to be obtained, and (iv) the income tax and
other tax consequences, if any, that may be relevant to the purchase, holding, redemption,
sale or transfer of the Shares. Such Investor’s subscription and payment for, and its
continued beneficial ownership of the Shares, will not violate any applicable securities or
other laws of its jurisdiction.

(h) Domicile. The Investor is a bona fide resident and domiciliary (not a temporary
or transient resident) of the state indicated on Exhibit B hereto and he, she or it has no
present intention of becoming a resident of any other state or jurisdiction.

(i) No Need for Liquidity. The Investor’s aggregate holding of securities that are
“restricted securities” or otherwise not readily marketable is not excessive in view of the
Investor’s net worth and financial circumstances and the purchase of the Shares will not
cause such commitment to become excessive.

(j) Independent Advice. The Investor understands that the Company urges the
Investor to seek independent advice from professional advisors relating to the suitability for
the Investor of an investment in the Company in view of the Investor’s overall financial
needs and with respect to legal and tax implications of such an investment.

4.
Reliance. The Investor understands that the Company may rely on the foregoing representations and warranties in determining whether to accept this Subscription. If for any
reason any representations and warranties are no longer true and accurate prior to the Acceptance
Date, the Investor will give the Company prompt written notice of the inaccuracy. By signing
below, the Investor represents that the Investor has read and confirmed the truth and accuracy of
each of the foregoing representations and warranties.

5.
Indemnification. The Investor agrees to indemnify and hold harmless the Company and
each of its directors, officers, agents and affiliates from and against any and all loss,
damage or liability due to or arising out of a breach of any representation, warranty or covenant of the
undersigned contained in this Agreement.

6. Restrictive Legends and Stop-Transfer Orders.

     (a) Legend. The stock certificate representing the Shares shall bear the following
legend or similar legend (as well as any legends required by applicable state and federal
corporate and securities laws):

THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”)
AND MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND
UNTIL REGISTERED UNDER THE ACT OR, IN THE OPINION OF
COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE
ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR
TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE THEREWITH.

 

 

     (b) Removal of Legend and Transfer Restrictions. Any legend endorsed on a
certificate pursuant to this Section 6 and the stop transfer instructions with respect to such
legended Shares shall be removed, and the Company shall issue a certificate without such
legend to the holder of such Shares if such Shares are registered under the Securities Act, and
a prospectus meeting the requirements of Section 10 of the Securities Act is available or if
such holder satisfies the requirements of Rule 144(k) or if such holder provides the Company
with an opinion of counsel for such holder of the Securities, reasonably satisfactory to the
Company, to the effect that a sale, transfer or assignment of such Shares may be made
without registration.

7. Registration Rights.

     (a)
Piggy-back Rights. If (but without any obligation to do so) the Company
proposes to register any of shares of Common Stock in connection with
any offering of shares of Common Stock solely for cash pursuant to a registration statement under the
Securities Act, other than a registration solely in connection with a transaction under
Rule 145 promulgated under the Securities Act (a
“Public Offering”), the Company shall
promptly give the Investor written notice of such registration, at least 10 business days
prior to the filing of any registration statement under the Securities Act. Upon the written request
of the Investor given within 5 business days after delivery of such written notice by the
Company, the Company shall, subject to the provisions of Section 7(b) below, use its best
efforts to cause to be registered under the Securities Act all of the Shares that the Investor
has requested to be registered.

     (b) Underwriting. If the registration statement under which the Company gives
notice under this Section 7 is for an underwritten Public Offering, the Company shall so
advise the Investor. The right of the Investor to registration pursuant to Section 7(a) above
shall be conditioned upon the Investor’s participation in such underwriting and the inclusion
of the Shares in the underwriting to the extent provided herein. The Investor shall (together
with the Company and any other holders of Company securities distributing their securities
through such underwriting) enter into an underwriting agreement in customary form with the
underwriter or underwriters selected for underwriting by the Company. Notwithstanding any
other provision of this Section 7, if the underwriter determines that marketing factors
require a limitation of the number of shares to be underwritten, the underwriter may exclude some or
all of the Shares from such registration and underwriting.

     (c) Furnish Information. It shall be a condition to the Company’s obligations to
take any action under this Section 7 that the Investor shall
furnish to the Company such information regarding itself, the Shares, and the intended method of disposition of such
securities as shall be required to effect the registration of their Shares. In that
connection, each selling Investor shall be required to represent to
the Company that all such information which is given is both complete and accurate in all material respects when made.

     (d) Delay of Registration. The Investor shall have no right to obtain or seek an
injunction restraining or otherwise delaying any such registration as the result of any
controversy that might arise with respect to the interpretation or implementation of this
Section 7.

 

 

     (e)
Termination of Registration Rights. The Company shall have no obligation to
register the Shares pursuant to this Section 7 with respect to any request or requests made by
any Investor on or after that date which is one year after the Acceptance Date.

8. Price Protection.

     (a)
Sales of Common Stock. If at any time after the Acceptance Date and before the
date that is one year after the Acceptance Date, the Company issues or sells any shares of its
Common Stock (other than Excluded Shares (as that term is defined
below)) for a
consideration per share (the “Dilutive Price”) less than the Purchase Price, then the
Company will issue to the Investor a number of shares, if positive, of Common Stock
determined by the following formula:

	 	 	 	 	 	 	 
	 	 	 	 	X = (A / B) – (C + D)
	 

	 	Where:
	 	X =
	 	the number of shares of Common Stock to be issued to the
Investor, rounded to the nearest whole number;
	 

	 	 	 	A =
	 	the Total Purchase Price;
	 

	 	 	 	B =
	 	the Dilutive Price;
	 

	 	 	 	C =
	 	the number of Shares held by the Investor; and
	 

	 	 	 	D =
	 	the number of shares of Common Stock issued to the Investor
pursuant to this Section 8(a) prior to the date of such
determination.

Notwithstanding the foregoing, in no event will the Company be obligated to issue to the
Investor a number of shares of Common Stock pursuant to this Section 8( a) in excess of the
number determined by the following formula:

	 	 	 	 	 	 	 
	 	 	 	 	X = (A / B) – C
	 

	 	Where:
	 	X =
	 	the number of shares of Common Stock to be issued to the
Investor, rounded to the nearest whole number;
	 

	 	 	 	A =
	 	the Total Purchase Price;
	 

	 	 	 	B =
	 	Twenty Cents ($0.20); and
	 

	 	 	 	C =
	 	the number of Shares held by the Investor.

For
purposes of this Agreement, the term “Excluded
Shares” means: (i) shares of Common
Stock issuable or issued after the Acceptance Date to officers, employees, consultants or
directors of the Company directly or pursuant to a stock purchase, stock option, restricted
stock or other written compensation plan or agreement approved by the Board of Directors of
the Company (the “Board”); (ii) shares of Common Stock issued or issuable after the

 

 

Acceptance Date, primarily for non-equity
financing purposes and as approved by the Board,
to financial institutions or lessors in connection with commercial credit arrangements,
equipment financings or similar transactions or to vendors of goods or services or customers;
(iii) shares of Common Stock issuable upon (a) exercise of outstanding warrants, options,
notes or other rights to acquire securities of the Company, (b) conversion of outstanding
shares of the Company’s Preferred Stock, par value $0.01 per share or (c) exchange of
outstanding promissory notes issued by the Company; (iv) capital stock or warrants or
options to purchase capital stock issued in connection with bona fide acquisitions, mergers or
similar transactions, the terms of which are approved by the Board; or (v) shares of Common
Stock issued or issuable by way of dividend or other distribution on Excluded Shares.

     (b)
Change of Control. If a Change of Control (as that term is defined below) is
consummated prior to the date that is one year after the Acceptance Date pursuant to which
the Investor, by virtue of its ownership of the Shares, is entitled to receive, either out of
the assets and funds of the Company available for the distribution to the holders of Common
Stock or from the acquiring entity or person, aggregate consideration
(the “Acquisition
Consideration”) with a value less than the product of (x) the number of Shares held by the
Investor immediately prior to the Change of Control and (y) the Purchase Price, then the
Company will issue to the Investor, immediately prior to the consummation of the Change of
Control, a number of shares, if positive, of Common Stock determined by the following
formula:

	 	 	 	 	 	 	 
	 	 	 	 	X	=	(A/B*C) - (C + D)
	 
	 

	 	Where:
	 	X
	=	the number of shares of Common Stock to be issued to the
Investor, rounded to the nearest whole number;
	 
	 

	 	 	 	A
	=	the Total Purchase Price;
	 
	 

	 	 	 	B
	=	the Acquisition Consideration;
	 
	 

	 	 	 	C
	=	the number of Shares held by the Investor; and
	 
	 

	 	 	 	D
	=	the number of shares of Common
Stock issued to the Investor
pursuant to Section 8(a)

For
purposes of this Agreement, the term “Change of Control” means (i) a sale or
disposition of all or substantially all of the assets of the Company, and (ii) a merger or
consolidation of the Company with or into any other corporation or corporations or other
entity, or any other corporate reorganization, or any transfer of beneficial ownership (within
the meaning of Rule 13d-3 promulgated by the Securities and Exchange Commission under
the Securities Exchange Act of 1934, as amended), directly or indirectly, of the outstanding
shares of capital stock of the Company, in a single transaction or a series of related
transactions where the shareholders of the Company immediately prior to such transaction or
series of related transactions do not retain at least fifty percent
(50%) of the voting power in
the Company or any successor or acquiring entity (as applicable).

 

 

9. Miscellaneous.

     (a) Governing Law. This Agreement, all acts and transactions pursuant hereto and
the rights and obligations of the parties hereto shall be governed, construed and interpreted in
accordance with the laws of the state of California, without giving effect to principles of
conflicts of law.

     (b)
Jurisdiction and Venue. Any legal action or other legal proceeding relating to
this Agreement or the enforcement of any provision of this Agreement shall be brought or
otherwise commenced in any state or federal court located in the county of San Diego,
California. Each party to this Agreement: (i) expressly and irrevocably consents and submits
to the jurisdiction of each state and federal court located in the county of San Diego,
California and each appellate court located in the state of California, in connection with any
such legal proceeding; (ii) agrees that each state and federal court located in the county of
San Diego, California shall be deemed to be a convenient forum; and (iii) agrees not to
assert, by way of motion, as a defense or otherwise, in any such legal proceeding commenced
in any state or federal court located in the county of San Diego, California any claim that
such party is not subject personally to the jurisdiction of such court, that such legal
proceeding has been brought in an inconvenient forum, that the venue of such proceeding is
improper or that this Agreement or the subject matter of this
Agreement may not be enforced in or by such court.

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

     (d) Notices. All notices and other communications hereunder shall be in writing and
shall be given (and shall be deemed to have been duly given upon receipt) by delivery in
person or facsimile transmission (received at the facsimile machine to which it is transmitted
prior to 5:00 p.m., local time, on a business day in the state of California, for the party to
which it is sent), by courier or express delivery service or by registered or certified mail
(postage prepaid, return receipt requested) to the respective parties at the following addresses
(or at such other address for a party as shall be specified in a notice given in accordance with
this Section):

	 	 	 	 	 
	 

	 	if to the Company:
	 	Biokeys Pharmaceuticals, Inc.
	 

	 	 	 	9948 Hibert Street, Suite 100
	 

	 	 	 	San Diego, CA 92131
	 

	 	 	 	Attention: Nicholas J. Virca
	 

	 	 	 	Facsimile: (858) 271-9678

 

 

	 	 	 	 	 
	 

	 	with a copy to (not to constitute notice):
	 	Bingham McCutchen LLP
	 

	 	 	 	3 Embarcadero Center
	 

	 	 	 	San Francisco, CA 94111-4067
	 

	 	 	 	Attention: Francis W. Sarena
	 

	 	 	 	Facsimile: (415) 393-2286
	 
	 	 	 	 
	 

	 	if to the Investor:
	 	To the address set forth in Exhibit B hereto.

     (e)
Modifications and Amendments. The terms and provisions of this Agreement
may be modified or amended only by written agreement executed by the parties hereto.

     (f)
Waivers and Consents. The terms and provisions of this Agreement may be
waived, or consent for the departure therefrom granted, only by written document executed
by the party entitled to the benefits of such terms or provisions. No such waiver or consent
shall be deemed to be or shall constitute a waiver or consent with respect to any other terms
or provisions of this Agreement, whether or not similar. Each such waiver or consent shall
be effective only in the specific instance and for the purpose for which it was given, and
shall not constitute a continuing waiver or consent.

     (g)
Assignment. This Agreement may not be transferred or assigned without the
prior written consent of the Company and any such transfer or
assignment shall be made only
in accordance with applicable laws and any such consent.

     (h)
Severability. In the event that any court of competent jurisdiction shall
determine that any provision, or any portion thereof, contained in
this Agreement shall be
unenforceable in any respect, then such provision shall be deemed limited to the extent that
such court deems it enforceable, and as so limited shall remain in full force and effect. In
the event that such court shall deem any such provision, or portion thereof, wholly
unenforceable, the remaining provisions of this Agreement shall nevertheless remain in full
force and effect.

     (I) Interpretation. The parties hereto acknowledge and agree that: (i) each party
and such party’s counsel has reviewed the terms and provisions of this Agreement; (ii) the
rule of construction to the effect that any ambiguities are resolved against the drafting
party shall not be employed in the interpretation of this Agreement; and (iii) the terms and
provisions of this Agreement shall be construed fairly as to the parties hereto and not in
favor of or against any party, regardless of which party was generally responsible for the
preparation of this Agreement. Whenever used herein, the singular number shall include the
plural, the plural shall include the singular, the use of any gender shall include all
persons.

     (j) Headings and Captions. The headings and captions of the various subdivisions
of this Agreement are for convenience of reference only and shall in no way modify, or affect
the meaning or construction of any of the terms or provisions hereof.

     (k)
No Waiver of Rights, Powers and Remedies. No failure or delay by a party
hereto in exercising any right, power or remedy under this Agreement, and no course of

 

 

dealing between the parties hereto, shall operate as a waiver of any such right, power or
remedy of the party. No single or partial exercise of any right, power or remedy under this
Agreement by a party hereto, nor any abandonment or discontinuance of steps to enforce any
such right, power or remedy, shall preclude such party from any other or further exercise
thereof or the exercise of any other right, power or remedy hereunder. The election of any
remedy by a party hereto shall not constitute a waiver of the right of such party to pursue
other available remedies. No notice to or demand on a party not expressly required under
this Agreement shall entitle the party receiving such notice or demand to any other or further
notice or demand in similar or other circumstances or constitute a waiver of the rights of the
party giving such notice or demand to any other or further action in any circumstances
without such notice or demand.

     (l)
Survival of Representations and Warranties. All representations and
warranties made by the parties hereto in this Agreement or in any other agreement, certificate
or instrument provided for or contemplated hereby, shall survive (i) the execution and
delivery hereof, (ii) any investigations made by or on behalf of the parties and (iii) the
closing of the transaction contemplated hereby.

     (m)
Expenses. Each of the parties hereto shall pay its own fees and expenses
(including the fees of any attorneys, accountants, appraisers or others engaged by such party)
in connection with this Agreement and the transactions contemplated hereby whether or not
the transactions contemplated hereby are consummated.

     (n)
Counterparts. This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and
the same instrument.

     IN WITNESS WHEREOF, the undersigned has executed this Agreement this ___day of ___, 2003.

	 	 	 	 	 	 	 
	 

	 	Investor:	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	(signature)	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	(please print)	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	(if applicable)	 	 

Biokeys
Pharmaceuticals, Inc. hereby accepts the foregoing Subscription
subject to the terms
and conditions hereof as of ______  ___, 2003

Biokeys
Pharmaceuticals, Inc.

	 	 	 	 	 
	By:

	 	 	 	 
	 

	 	 	 	 
	 

	 	Nicholas J. Virca, Chief Executive Officer	 	 

 

 

Exhibit
A

Wire
Instructions

The
following information is provided to
assist you in routing wire transfers TO the account
of Biokeys Pharmaceuticals, Inc. at Silicon Valley Bank in the most expeditious manner.

For all
incoming foreign currency wires, please contact Silicon Valley
Bank’s International
Department at (408) 654-7774 for settlement instructions.

DOMESTIC WIRE TRANSFER:

Instruct
the paying financial institution or the payor to route all domestic wire transfers via
FEDWIRE to the following ABA number:

	 	 	 	 	 	 	 
	 

	 	TO:
	 	SIL VLY BK SJ
	 	 
	 
	 	 	 	 	 	 
	 

	 	ROUTING & TRANSIT #:
	 	121140399 	 	 
	 
	 	 	 	 	 	 
	 

	 	FOR CREDIT OF:
	 	Biokeys, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	CREDIT ACCOUNT #:
	 	3300340922 	 	 
	 
	 	 	 	 	 	 
	 

	 	BY ORDER OF:
	 	[NAME OF SENDER]	 	 

INTERNATIONAL WIRE TRANSFER:

Instruct the paying financial institution to advise their U.S. correspondent to pay as follows:

	 	 	 	 	 	 	 
	 

	 	PAY TO:
	 	FC — SILICON VALLEY BANK
	 	 
	 

	 	 	 	3003 TASMAN DRIVE	 	 
	 

	 	 	 	SANTA CLARA, CA 95054, USA	 	 
	 
	 	 	 	 	 	 
	 

	 	ROUTING & TRANSIT #:
	 	\\FW121140399	 	 
	 
	 	 	 	 	 	 
	 

	 	SWIFT CODE:
	 	SVBKUS6S	 	 
	 
	 	 	 	 	 	 
	 

	 	FOR CREDIT OF:
	 	Biokeys, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	FINAL CREDIT ACCOUNT #:
	 	FNC — 3300340922	 	 
	 
	 	 	 	 	 	 
	 

	 	BY ORDER OF:
	 	[NAME OF SENDER]	 	 

IMPORTANT!!!!

Wire
instructions MUST designate the FULL TEN DIGIT ACCOUNT NUMBER listed
above. Wires received by Silicon Valley Bank with INCOMPLETE or
INVALID ACCOUNT
NUMBERS may be delayed and could possibly require return to the sending bank due to new
regulations.

 

 

Exhibit
B

Investor Suitability Questionnaire

Biokeys Pharmaceuticals, Inc. (the “Company”)

(All information will be treated confidentially)

I.          INDIVIDUAL INVESTORS ONLY

Personal Information

			
	Name:	 	
 

(Exact name as it should appear on stock certificate.)

			
	Residence Address:	 	
 

 

 

			
	Home Telephone Number:	 	
 

			
	Fax Telephone Number	 	
 

			
	Email Address:	 	
 

			
	Social Security Number:	 	
 

Delivery Information (Applicable only if different than residence.)

			
	Name of Institution or Destination:	 	
 

			
	Contact Name:	 	
 

			
	Delivery Address:	 	
 

 

 

			
	Account Reference (if applicable):	 	
 

			
	Contact Telephone Number:	 	
 

			
	Contact Fax Telephone Number:	 	
 

			
	Contact Email Address:	 	
 

 

 

Employment Information

			
	Occupation:	 	
 

			
	Number of Years:	 	
 

			
	Present Employer:	 	
 

			
	Position/Title:	 	
 

			
	Business Address:	 	
 

			
	Business Telephone:	 	
 

Resident Information

Set forth in the space provided below the state(s)/country(ies) in which
you have maintained your principal residence during the past three
years and the date during which
you resided in each state/country.

	 	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 

Are you registered to vote in, or do you have a driver’s license issued by, or do you maintain a
residence in any other state? If yes, in which state(s)?

	 	 	 	 	 
	 

	 	Yes                     
	 	No                     

Income

Do you
reasonably expect either your own income from all sources during the current
year to exceed $200,000 or the joint income of you and your spouse (if
married) from all sources during the current year to exceed $300,000?

	 	 	 	 	 
	 

	 	Yes                     
	 	No                     

			
	          If not, please specify the amount:	 	
 

What percentage of your income as shown above is anticipated to be derived
form sources other than salary?

	 	 	 	 	 
	 
	 	 	 	 
	 	 	 

2

 

	 	 	Was either your yearly income from all sources during each of the last two years
in excess of $200,000 or was the joint income of you and your spouse (if married) from
all sources during each of such years in excess of $300,000?

	 	 	 	 	 
	 

	 	Yes                     
	 	No                     
	 
	 	 	 	 
	 

	 	If no, please specify the amount for:	 	 

			
	          Last Year:	 	
 

			
	          Year Before Last:	 	
 

	F.	 	Net Worth
	 
	 	 	Will your net worth* as of the date you purchase securities of the
Company, together with the net worth of your spouse, be in excess of $1,000,000?

	 	 	 	 	 
	 

	 	Yes                     
	 	No                     

			
	          If not, please specify amount:	 	
 

* As used in this questionnaire the term “net worth” means the amount by
which total assets exceed total liabilities. In computing net worth for purposes of this Item 5,
you should value your principal residence at cost, including cost of improvements, or
at that value recently appraised by an institutional lender making a secured loan or otherwise by a
certified appraiser, net of encumbrances.

	G.	 	Education
	 
	 	 	Please describe your educational background and degrees obtained, if any.
	 
	 	 	 

 
	 
	 	 	 

	H.	 	Affiliation
	 
	 	 	If you have any pre-existing personal or business relationship with the Company or any
of its officers, directors or controlling persons, please describe the nature and duration
of such relationship.
	 
	 	 	 

 
	 
	 	 	 

	 
	 	 	 

3

 

	I.	 	Business and Financial Experience
	 
	 	 	Please describe in reasonable detail the nature and extent of your business,
financial and investment experience which you believe give you the capacity to evaluate the
merits and risks of the proposed investment and the capacity to protect your interests.

	 	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 

	 	 	Are you purchasing the securities offered for your own account and for investment
purposes only?

	 	 	 	 	 
	 

	 	Yes                     
	 	No                     
	 
	 	 	 	 
	 	 	If no, please state for whom you are investing and/or the reason for investing.

	 	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 

4

 

11.     ENTITY INVESTORS ONLY

Entity Name and Contact Information

			
	Name:	 	
 

(Exact name as it should appear on stock certificate.)

			
	Name of Institution or Destination:	 	
 

(Include if different from stock certificate.)

			
	Address:	 	
 

 

 

			
	Account Reference (if applicable):	 	
 

			
	Tax Identification Number (if applicable):	 	
 

			
	Contact Name:	 	
 

			
	Contact Telephone Number:	 	
 

			
	Contact Fax Number:	 	
 

			
	Contact Email Address:	 	
 

General Information

			
	Under the laws of what jurisdiction was the Investor formed?	 	
 

Was the Investor formed for the purpose of investing in the securities being offered?

	 	 	 	 	 
	 

	 	Yes                     
	 	No                     

Set forth in the space provided below the (i) state(s), if any, in the United
States in which you maintained your principal office during the past two years and the
dates during which you maintained your office in each state, (ii) the state(s), if any, in
which you are incorporated or otherwise organized, and (iii) the state(s), if
any, in which you still pay income taxes:

 

 

 

5

 

	C.	 	Accredited Investor Information
	 
	 	 	Is the Investor a national bank or a banking institution organized under the laws of
any state or any territory of the United States or the District of Columbia?

	 	 	 	 	 
	 

	 	Yes                     
	 	No                     

	 	 	Is the Investor a savings and loan association, building and loan association, cooperative
bank, homestead association, or similar institution, which is supervised and examined
by any state or federal authority having supervision over such institution?

	 	 	 	 	 
	 

	 	Yes                     
	 	No                     

	 	 	Is the Investor a broker or dealer registered pursuant to Section 15 of the Securities
Exchange Act of 1934?

	 	 	 	 	 
	 

	 	Yes                     
	 	No                     

	 	 	Is the Investor a company (i) whose primary and predominant business is underwriting
insurance and subject to the supervision by a regulatory agency under the laws of any state or
territory, or (ii) registered as an investment company under the Investment Company Act of 1940,
or (iii) a Small Business Investment Company licensed by the U.S. Small Business Administration?

	 	 	 	 	 
	 

	 	Yes                     
	 	No                     

	 	 	Is the Investor a “business development company” within the meaning of the Investment Company
Act of 1940 or the Investment Advisers Act of 1940?

	 	 	 	 	 
	 

	 	Yes                     
	 	No                     

	 	 	Is the Investor an employee benefit plan under the Employee Retirement Income Security Act of
1974 (a “Plan") with assets in excess of $5,000,000?

	 	 	 	 	 
	 

	 	Yes                     
	 	No                     

If the Investor is such a Plan, but if the Plan’s total assets do not
exceed $5,000,000, are investment decisions for the Plan made by a bank, savings and
loan association, insurance company or registered investment adviser acting as
fiduciary? (If yes, please specify the name of the fiduciary.)

	 	 	 	 	 
	 

	 	Yes                     
	 	No                     

			
	                    Name of Fiduciary:	 	
 

If the Investor is a self-directed Plan, but if the Plan’s total assets do not exceed
$5,000,000, are investment decisions made solely by persons or entities that can answer yes
to one or more of the questions under paragraphs (b) - (e) of Item 1,
or (c) - (k) under this Item 2? (If yes, please specify the applicable Item and

6

 

Paragraph.)

	 	 	 	 	 
	 

	 	Yes                     
	 	No                     
	 
	 	 	 	 
	 	 	Item and Paragraph:                                        

Is the Investor (A)(i) a tax exempt organization which is qualified under
Section 501(c)(3) of the Internal Revenue Code of 1986 as amended, or (ii) a corporation, or (iii) a
Massachusetts or similar business trust, or (iv) a partnership, not formed for the specific purpose
of acquiring the securities offered, and (B) which has assets in excess of
$5,000,000?

	 	 	 	 	 
	 

	 	Yes                     
	 	No                     

Is the Investor a trust, with total assets in excess of $5,000,000, not formed for the
specific purpose of acquiring the securities offered, whose purchase is directed by a person who
has such knowledge and experience in financial and business matters that he is capable
of evaluating the merits and risks of the prospective investment?

	 	 	 	 	 
	 

	 	Yes                     
	 	No                     

If yes, please attach a memorandum describing such person’s educational background,
professional memberships or licenses, current employment, principal business and
professional activities during the last five years, and experience as an investor in
securities. Include any additional information evidencing that such person has
sufficient knowledge and experience in financial matters that such person would be capable
of evaluating the merits and risks of investing in the securities being
offered.

Is the Investor an entity in which all of the equity owners are persons who are either
(i) entities described in paragraphs (c) through (j)above; (ii) persons
whose net worth, or joint net worth with their spouses, exceeds $1,000,000; (iii) persons whose
income without regard to that of their spouses exceeded $200,000, or whose joint income
with their spouses exceeded $300,000, in each of the last two years and who
reasonably expect such person income to exceed $200,000 or such joint income to exceed $300,000 this
year; or (iv) persons who are brokers or dealers registered pursuant to Section 15 of
the Securities Exchange Act of 1934?

	 	 	 	 	 
	 

	 	Yes                     
	 	No                     

If an equity owner is an entity described in paragraphs
(h) or (j) under this Item 3, please provide the
information required by such paragraph.

7

 

          The above information has been requested by the Company and will be used
solely to confirm that the Company is complying with certain securities regulations. In
furnishing the above information, the undersigned acknowledges that the Company will be relying
thereon in assessing the requirements of the Securities Act of 1933, as amended, and other
applicable securities laws.

          The information contained in this questionnaire is true and
complete, and the undersigned understands that the Company and its counsel
will rely on such information for the purpose of
complying with all applicable securities laws, as discussed above. The
undersigned agrees to notify the Company promptly of any change
in the foregoing information which may occur prior to any
purchase by the undersigned of stock from the Company.

Date:                                                             

Individual
Investor:

			
	By:	 	
 

(signature)

			
	Name:	 	
 

(please print)

Entity
Investor:

			
	By:	 	
 

(signature)

			
	Name:	 	
 

(please print)

			
	Title:	 	
 

(please print)

8

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