Document:

Employment Transition & Release Agreement

 Exhibit 10.3 
  
 September 12, 2005 
  
 EMPLOYMENT TRANSITION & RELEASE AGREEMENT 
  
 This Employment Transition and Release Agreement (“Agreement”) by and between Openwave Systems Inc. (the “Company” or
“Openwave”), and Joshua Pace (“Employee”) is made on September 12, 2005, but effective as of September 30, 2005 (the “Effective Date”). 
  
 Factual Recitals 
  
 A. Employee is currently employed by the Company as the Senior Vice President and Chief Financial Officer, and Employee and the Company have mutually
decided to transition Employee’s employment from the Effective Date through December 31, 2006, and then to terminate Employee’s employment with the Company effective at close of business on December 31, 2006; 
  
 B. The Company and Employee have entered into the following agreements
(collectively, the “Pre-existing Agreements”) which were in force and effect just prior to entry into this Agreement: 
  
 Employment Offer Letter Agreement dated February 28, 2005 (“Employment Letter Agreement”). 
  
 Confidential Information and Invention Assignment Agreement (the
“Confidentiality Agreement”) dated April 24, 2003 (“Confidentiality Agreement”); 
  
 Indemnification Agreement by and between the Company and Executive dated August 14, 2002 (“Indemnification Agreement”); and 
  
 Change of Control Severance Agreement dated July 27, 2004 (“Change of
Control Agreement”). 
  
 C. Employee is a potential
beneficiary under the Company’s Executive Severance Policy. 
  
 D. In lieu of the Company’s obligations to make any payments to Employee under the Pre-existing Agreements, the Executive Severance Policy, and any other agreement, plan, program, policy or arrangement, except as otherwise expressly
set forth below, the parties have agreed to the terms set forth in this Agreement. 
  
 NOW THEREFORE, in consideration of the mutual promises made herein, the Company and Employee (collectively referred to as “the Parties”) hereby agree as follows: 
  
 A. Final and ExclusiveAgreement. This Agreement supersedes the
Employment Letter Agreement, the Change of Control Agreement, and all other agreements, plans, programs, policies, and arrangements relating to the terms of Employee’s employment, including the amendment or termination of such terms.
Notwithstanding the foregoing, the Indemnification Agreement and the Confidentiality Agreement shall remain in full force and effect according to their terms. 

 September 12, 2005 
  
 B. Resignation and Transition Period. Employee hereby resigns as the Chief Financial Officer of the Company on
September 30, 2005. From October 1, 2005 through December 31, 2005 (the “Initial Transition Period”), subject to the effectiveness of Employee’s release of all claims in substantially the form attached hereto as Exhibit B (as
described in Section H below) and Employee’s attendance at one or more meetings prior to October 1, 2005 at a time mutually convenient to the Company and Employee in order to address transitional administrative matters, Employee will serve as
an non-officer employee-advisor to the Chief Financial Officer of the Company, with such responsibilities and duties as the Chief Executive Officer or the Chief Financial Officer of the Company shall assign. Employee will be available for up to 40
hours of work per week as needed during normal business hours (defined as 9 AM to 5 PM (Pacific Standard Time) on each Monday through Friday, excluding Company holidays) and when reasonably necessary during non-normal business hours. During the
Initial Transition Period, Employee will continue to earn his full base salary at the rate of $27,500 per month (or $330,000 on an annualized basis, the “Base Salary”), paid semi-monthly in accordance with the Company’s normal payroll
practices. Employee will continue to receive standard company benefits available to employees, including without limitation, health care insurance, vacation accrual, life insurance, and disability insurance. Employee shall also continue to vest in
his stock options and restricted stock during the Initial Transition Period. The Parties agree that set forth at Exhibit A is an accurate summary of Employee’s outstanding options to purchase common stock of the Company and grants of
shares of restricted common stock of the Company (such options and grants, the “Equity Awards”). During the Initial Transition Period, Employee will continue to be eligible to participate in the Company’s Corporate Incentive Plan
(“CIP”) with a target bonus of 60% of his Base Salary. In addition, Employee will be paid that one-time bonus in the amount of one hundred fifty thousand dollars ($150,000.00) described in the Employment Letter Agreement as soon as
administratively reasonable following the Effective Date of this Agreement. Employee will not be eligible to participate in the CIP or other Company bonus program during fiscal year 2006 other than as expressly described herein. 
  
 From January 1, 2006 through December 31, 2006, (the “Subsequent
Transition Period”), Employee will serve as a part-time employee, with such responsibilities as the Chief Financial Officer of the Company shall reasonably assign. Employee will be available for up to 40 hours per month as may be reasonably
requested by the Company. During the Subsequent Transition Period, Employee will continue to earn his Base Salary plus an incentive bonus equal to 60% of his Base Salary regardless of actual Company performance paid semi-monthly in accordance with
the Company’s normal payroll practices (or a total of $22,000 per semi-monthly payroll period). Employee will receive those standard company benefits available to similarly situated part-time employees of the Company and understands that he is
not likely to be eligible for group health coverage; provided, however, that Employee will not earn or accrue any additional vacation time or floating holiday time for calendar year 2006. In the event that Employee is not eligible for group health
coverage, the Company shall, at Company’s expense, provide Employee and his eligible dependents with medical, dental and vision insurance benefit coverage in accordance with the requirements of the Consolidated Omnibus Budget Reconciliation Act
of 1985 (“COBRA Coverage”), providing Employee timely executes and delivers all necessary COBRA Coverage election documentation which will be sent to Employee promptly after the commencement of the Subsequent Transition
Period. Such Company-paid COBRA Coverage shall continue until the earlier of (1) the Subsequent Transition Period and (2) the time that Employee is no longer eligible for COBRA Coverage. Thereafter, if Employee wishes to continue COBRA Coverage and
is eligible to do so, Employee will be required to pay all requisite premiums for such continued coverage. Nothing in this Agreement shall be intended to affect Employee’s rights to COBRA Coverage or any other law establishing Employee’s
rights to health care continuation coverage. Employee shall also continue to vest in his Equity Awards during the Subsequent Transition Period. 
  

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 September 12, 2005 
  
 Any references in this Agreement to the “Transition Period” shall refer to both the Initial Transition Period and
the Subsequent Transition Period. 
  
 C. Final Date of
Employment; Exit Interview. Employee’s employment with the Company will end at 5 PM (Pacific Standard Time) on December 31, 2006 (“Final Date of Employment”). On or immediately prior to Employee’s Final Date of Employment,
Employee agrees to execute an effective release of claims substantially in the form attached as Exhibit C (as further described in Section H below) and the Company will pay Employee all salary, wages, bonuses, accrued but unused vacation and
floating holidays, if any, commissions and any and all other cash compensation due to Employee through and including the Final Date of Employment. Employee agrees to schedule and attend an exit interview with the Company’s human resources
department on or prior to December 31, 2006. Employee also agrees to return all Company equipment, and all other Company property in his possession or control at or prior to the exit interview, or in any event, if for any reason no such interview
takes place, on or before the Final Date of Employment. 
  
 D.
Separation Compensation. Employee’s employment during the Transition Period will continue to be on an at-will basis. If at any time during the Transition Period, Employee terminates his employment for any reason or if his employment is
terminated by the Company for “Cause” (as defined below), Employee’s Equity Awards will immediately cease vesting and, upon payment of any accrued but unpaid Base Salary and paid time off, Employee will have no further rights to any
payments or benefits from the Company, other than pursuant to the Indemnification Agreement or as otherwise required under applicable law. If, prior to the Final Date of Employment, Employee’s employment is terminated by the Company without
Cause (such termination date, the “Separation Date”), and subject to Employee’s execution of an effective release of claims substantially in the form attached as Exhibit C and continued compliance with all of the restrictive
covenants set forth or referred to in Section F below and Exhibit D hereto, the Company will provide Employee with the following: 
  
 1. From the Separation Date through December 31, 2006 (the “Severance Period”), the Company will continue to pay Employee his Base Salary in
semi-monthly payments, subject to withholding for customary payroll and income taxes. 
  
 2. During the Severance Period, the Company shall, at Company’s expense, provide Employee and his eligible dependents with medical, dental and vision insurance benefit coverage in accordance with the requirements
of the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA Coverage”), providing Employee timely executes and delivers all necessary COBRA Coverage election documentation which will be sent to Employee promptly
after Employee’s Separation Date. Thereafter, if Employee wishes to continue COBRA Coverage, Employee will be required to pay all requisite premiums for such continued coverage. 
  
 3. The vesting of Employee’s unvested Equity Awards shall be accelerated such that, as of the Separation Date, Employee
will be vested in that number of shares subject to the Equity Awards as he would have been had his employment with the Company continued until December 31, 2006. Employee shall have the time period set forth in the applicable stock option agreement
and plan, to exercise any stock options that are vested as of the Separation Date. Employee acknowledges that generally options issued by the Company expire within ninety (90) days or three (3) months after termination of employment, which in
Employee’s case shall be within ninety (90) days or three (3) months after the Separation Date. Upon their expiration, such options may no longer be exercised and automatically become void and of no further force or effect. 
  

 3 

 September 12, 2005 
  
 If Employee shall fail to comply in all material respects with any of the restrictive covenants set forth in or referred to
in Section F below and Exhibit D hereto, and if such failure shall continue for a period of 10 days following written notice to Employee from the Company of such failure, the Company shall be permitted, along with all other remedies available
to the Company to correct or compensate for such a violation, to immediately cease making any further payments under this Section D, to immediately cease providing any further benefits under this Section D and to confirm that all Equity Awards shall
immediately expire (with any unvested shares of the Company’s common stock subject to such Equity Awards to be returned to the Company), and to require Employee to return to the Company any amounts or benefits previously provided to him
pursuant to this Section D (other than payments pursuant to the Indemnification Agreement or repayments prohibited under applicable law). 
  
 For the purposes of this Agreement, “Cause” shall mean (i) either (A) any material act of negligence or misconduct in the performance of
Employee’s duties to the Company, including any violation of his obligations under Section F of, or Exhibit D to, this Agreement or (B) materially unsatisfactory performance of his duties, in each case after prior written notice
specifying such act or performance has been provided to the Company to Employee, Employee has had a reasonable opportunity (of no more than 10 days) to cure if such act or performance is reasonably capable of being cured, and such act or performance
has not been cured; (ii) a material and willful violation of any federal or state law which if made public would materially injure the business or reputation of the Company; (iii) willful failure or refusal to act in accordance in all material
respects with any specific lawful direction or order of the Company or stated written policy of the Company; (iv) commission of any act of fraud with respect to the Company; or (v) conviction of a felony or a crime involving moral turpitude causing
material harm to the standing and reputation of the Company. 
  
 E
No Further Salary or Other Payments. Employee agrees that the Company has paid all salary, wages, bonuses, commissions and any and all other cash compensation as well as any and all employee benefits due to Employee through the date of
execution of this Agreement. Employee further acknowledges and agrees that the payments and benefits provided under this Agreement are in lieu of any severance payments or benefits that are or may become due and payable under the Executive Severance
Benefit Policy, the Employment Letter Agreement or any other agreement or understanding, whether oral or written, with the Company. Any portion of the Equity Awards that cannot become vested under the terms of this Agreement shall be cancelled as of
the Effective Date and the shares of the Company’s Common Stock subject to such Equity Awards shall be returned to the Company immediately thereon. 
  
 F. Competitive Activities; Confidentiality Agreement. As a Senior Vice President and Chief Financial Officer of the Company, Employee acknowledges
and agrees that he has acquired knowledge of sensitive, material and non-public information relating to product development road maps, marketing plans, competitive plans and pricing strategies, trade secrets, and other confidential information of
the Company (the “Confidential Information”). Employee acknowledges that the Confidential Information possessed by him could be disclosed or used to the material detriment of the Company were Employee to directly or indirectly be engaged
in any business in Competition (as defined in Exhibit D) with the Company or its affiliates. Employee represents and warrants that all at times prior to the date on which he executes this Agreement, he has been in material compliance with all
of his obligations under the Confidentiality Agreement. Employee understands that the terms of the Confidentiality Agreement, including the non-solicitation provisions thereof, shall continue in full force and effect following both the Effective
Date and the Final Date of Employment, such that the Company shall continue to possess all remedies available to it, whether at law or in equity, in order to enforce Employee’s compliance with such agreement. As a condition to being entitled to
any of the benefits described in Sections B and D above, Employee agrees that during the Transition Period and, if applicable, the Severance Period, he will remain in full compliance with all of his obligations under the Confidentiality Agreement
and all of his obligations as set forth on Exhibit D to this Agreement. 
  

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 September 12, 2005 
  
 G. Expense Reports. The Company agrees that it will pay all expenses incurred by Employee as part of his employment
in accordance with the provisions of the Company’s travel and expense reimbursement policy. Employee agrees that, with respect to expenses incurred prior to the Effective Date, he shall submit all expense reports to the Company on or prior to
October 31, 2005, and, with respect to all expenses incurred after the Effective Date, he shall submit all expenses on a regular basis in accordance with the Company’s applicable policies, but in no event later than December 7, 2006 for
expenses incurred prior to December 1, 2006 and no later than the Final Date of Employment for expenses incurred in December 2006. 
  
 H. Release of Claims by Employee. Employee agrees that the consideration described in Sections B and D above represents consideration in addition
to that to which Employee would have been entitled under the circumstances, and shall serve as consideration for settlement of all outstanding obligations owed to Employee by the Company through the Effective Date. Notwithstanding the foregoing
sentence, the Company shall not be relieved of any continuing obligations under the Indemnification Agreement for acts, occurrences and omissions of Employee through the Final Date of Employment. Employee agrees that in exchange for the payments and
other consideration Employee is entitled to receive pursuant to Sections B and D above, Employee shall execute a release of claims in substantially the form attached hereto as Exhibit B on or prior to the Effective Date, and in substantially
the form attached hereto as Exhibit C not earlier than the Separation Date and not later than December 31, 2006 (these Exhibits together, the “Waivers”). The Parties agree that the effectiveness of both Waivers is a condition
precedent to the Company’s obligation to make the payments and provide the benefits under Sections B and D of this Agreement and that if Employee fails to provide the Company with an effective Waiver when required pursuant to the terms hereof,
the Company shall be entitled to immediately cease making any further payments to Employee under the Agreement, to immediately cease providing any benefits to Employee under this Agreement and to confirm that all Equity Awards shall immediately
expire (with any unvested shares of the common stock of the Company subject to such Equity Awards being returned to the Company), and to require Employee to return to the Company any amounts or benefits previously provided to him under this
Agreement (other than payments pursuant to the Indemnification Agreement or repayments prohibited under applicable law); provided, however, that with respect to any Waiver to be executed in connection with Employee’s Final Date of Employment,
Employee may cure such failure by delivering such Waiver to the Company within 3 days of the date that he is notified in writing by the Company of such failure. 
  

I. Section 409A. Notwithstanding any provision of this Agreement to the contrary, if, at the time of Employee’s termination of employment
with the Company, he is a “specified employee” as defined in Section 409A of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), and one or more of the payments or benefits received or to be received by Employee
pursuant to this Agreement would constitute deferred compensation subject to Section 409A, no such payment or benefit will be provided under this Agreement until the earliest of (A) the date which is six (6) months after his “separation from
service” for any reason, other than death or “disability” (as such terms are used in Section 409A(a)(2) of the Code), (B) the date of his death or “disability” (as such term is used in Section 409A(a)(2)(C) of the Code) or
(C) the effective date of a “change in the ownership or effective control” of the Company (as such term is used in Section 409A(a)(2)(A)(v) of the Code). The provisions of this Section I shall only apply to the extent required to avoid
Employee’s incurrence of any penalty tax or interest under Section 409A of the Code or any regulations or Treasury guidance promulgated thereunder. In addition, if any provision of this Agreement would cause Employee to incur any penalty tax or
interest under Section 409A of the Code or any regulations or Treasury guidance promulgated thereunder, the Company may reform such provision to maintain to the maximum extent practicable the original intent of the applicable provision without
violating the provisions of Section 409A of the Code. 
  

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 September 12, 2005 
  
 J. No Pending or Future Lawsuits. Employee represents that he has no lawsuits, claims, or actions pending in his
name, or on behalf of any other person or entity, against the Company or any other Released Party (as defined in Exhibit B). Employee also represents that he does not intend to bring any claims on his own behalf or on behalf of any other
person or entity against the Company or any other Released Party. 
  
 K. Non-Disparagement and Cooperation. Employee agrees that he will refrain from making any derogatory, disparaging and/or detrimental statements to any other person or third parties about the Company or any of the Released Parties,
including but not limited to the Company’s directors, officers, employees, products and services. Employee also agrees that he will not act in any manner that might interfere with the business or disparage the reputation of the Company. The
Company agrees to direct each of the current members of the Company’s Board of Directors and each current named executive officer to refrain from making any derogatory, disparaging and/or detrimental statements to any other person or third
parties about the Employee and not to act in any manner that might disparage the reputation of the Employee. Employee agrees that he will not counsel or assist any attorneys or their clients in the presentation or prosecution of any disputes,
differences, grievances, claims, charges, or complaints by any third party against the Company and/or any other Released Party or any future officer, director, employee, agent, representative, shareholder or attorney of the Company, unless under a
subpoena or other court order to do so. Each Party agrees to offer reasonable assistance to the other Party in connection with any claims, investigations, arbitration, or litigation that may arise, when such assistance is reasonably requested. Any
assistance so provided shall be at the requestor’s expense (unless allocation of expense is otherwise allocated under the Indemnification Agreement or other relevant written agreement). Notwithstanding the foregoing provisions of this Section
K, each of Employee, the Company and any of the Released Parties shall be permitted to accurately and honestly respond to or cooperate with any valid governmental, judicial or regulatory (including, without limitation, the Securities and Exchange
Commission or Nasdaq) order, inquiry or request. 
  
 L. No
Admission of Liability. No action taken by the Parties hereto, or either of them, either previously or in connection with this Agreement shall be deemed or construed to be (a) an admission of the truth or falsity of any claims heretofore made or
(b) an acknowledgment or admission by either Party of any fault or liability whatsoever to the other Party or to any third party. 
  
 M. Costs. The Parties shall each bear their own costs, expert fees, attorneys’ fees and other fees incurred in connection with this Agreement.

  
 N. Arbitration. The parties hereto agree that, to the
extent permitted by law, any dispute or controversy arising out of, relating to, or in connection with this Agreement, or the interpretation, validity, construction, performance, breach, or termination thereof shall be settled by arbitration to be
held in Santa Clara County, California, in accordance with the National Rules for the Resolution of Employment Disputes then in effect of the American Arbitration Association (the “Rules”). The arbitrator may grant injunctions or other
relief in such dispute or controversy. The decision of the arbitrator shall be final, conclusive and binding on the parties to the arbitration. Judgment may be entered on the arbitrator’s decision in any court having jurisdiction. The
arbitrator shall apply California law to the merits of any claim or dispute, without reference to the rules of conflict of law. The arbitration proceedings shall be governed by federal arbitration law and by the Rules, without reference to state
arbitration law. The parties hereto hereby expressly consent to the personal jurisdiction of the state and federal courts located in California for any action or proceeding arising from or relating to this 
  

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 September 12, 2005 
  
 Agreement and/or relating to any arbitration in which the parties are participants. The parties shall equally share the costs and expenses
of such arbitration. Each party shall pay for such party’s own costs of representation at the arbitration and any related costs and expenses incurred in the preparation for or presentation of such party’s arguments at the arbitration or in
the enforcement of any decision of the arbitrator. 
  
 O.
Authority. The Company represents and warrants that the undersigned has the authority to act on behalf of the Company and to bind the Company and all who may claim through it to the terms and conditions of this Agreement. Employee represents
and warrants that he has the capacity to act on his own behalf and on behalf of all who might claim through his to bind them to the terms and conditions of this Agreement. Employee warrants and represents that there are no liens or claims of lien or
assignments in law or equity or otherwise of or against any of the claims or causes of action released herein. 
  
 P. No Representations. Each Party represents that it has had the opportunity to consult with an attorney, and has carefully read and understands
the scope and effect of the provisions of this Agreement. Neither Party has relied upon any representations or statements made by the other Party hereto which are not specifically set forth in this Agreement. 
  
 Q. Severability. The Parties intend that the covenants, agreements,
representations and warranties (collectively “Covenants”) contained in the provisions of this Agreement (including the Exhibits hereto) shall be deemed to be a series of separate Covenants. If, in any proceeding, a court or arbitrator
shall refuse to enforce all of the separate Covenants deemed included in the provisions of this Agreement, then such unenforceable Covenants shall be deemed eliminated from the provisions of this Agreement for the purpose of such proceeding to the
extent necessary to permit the remaining separate Covenants to be enforced in such proceeding. If any one or more of the Covenants contained in this Agreement is for any reason held to be excessively broad as to duration, geographical scope,
activity, subject, or for any other reason, the Parties request that will be construed by limiting it and reducing it, so as to be enforceable to the extent compatible with the applicable law as it then appears in order to carry out the intent of
the Parties to the greatest possible extent. If any provision of this Agreement is for any reason not described in the preceding sentence held to be unenforceable, it will be construed and interpreted in such a fashion so as to be enforceable to the
extent compatible with the applicable law as it then appears in order to carry out the intent of the Parties to the greatest possible extent. 
  
 R. Entire Agreement. This Agreement represents the entire agreement and understanding between the Company and Employee concerning Employee’s
separation from the Company, and supersedes and replaces any and all prior agreements and understandings concerning Employee’s relationship with the Company and his compensation from the Company, with the exception of the Indemnification
Agreement, Confidentiality Agreement and any agreements documenting the terms of an outstanding stock option or restricted stock award granted to Employee by the Company. The Parties understand and agree that this Agreement will be null and void and
the Company will have no further obligations to Employee hereunder if Employee does not enter into a valid and binding release in substantially the form attached hereto as Exhibit B on or before September 30, 2005. 
  
 S. No Oral Modification. This Agreement may only be amended in a
writing signed by Employee and the Chief Administrative Officer or other authorized officer of the Company. 
  
 T. Governing Law. This Agreement shall be governed by the internal laws of the State of California. 
  

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 September 12, 2005 
  
  
 U. Counterparts. This Agreement may be
executed in counterparts, and each counterpart shall have the same force and effect as an original and shall constitute an effective, binding agreement on the part of each of the undersigned. 
  
 V. Voluntary Execution of Agreement. This Agreement is executed
voluntarily by each Party and without any duress or undue influence on the part of the other Party or any third person, with the intent by each Party to enjoy that Party’s benefits and discharge that Party’s obligations as set forth under
this Agreement, and further, on the part of Employee, with the full intent of releasing all Claims for himself and on behalf of Employee’s Affiliates. The Parties acknowledge that: 
  
 1. They have read this Agreement; 
  

2. They have been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of their own choice or that they have
voluntarily declined to seek such counsel; 
  
 3. They understand
the terms and consequences of this Agreement and of the releases it contains; 
  
 4. They are fully aware of the legal and binding effect of this Agreement. 
  
 IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below. 
  

					
	 	 	 Employee:

		
	 Dated: September 12, 2005
	 	 /s/ Joshua Pace

	 	 	 Joshua Pace

		
	 	 	 OPENWAVE SYSTEMS INC.

			
	 Dated: September 12, 2005
	 	 By:
	 	 /s/ David Peterschmidt

	 	 	 Name:
	 	 David Peterschmidt

	 	 	 Title:
	 	 Chief Executive Officer

  

 8LSI Industries Inc. Nonqualified Deferred Compensation Plan

 EXHIBIT 10.8 
  
 LSI INDUSTRIES INC. 
 NONQUALIFIED DEFERRED COMPENSATION PLAN 
  
 PREAMBLE 
  
 LSI
Industries Inc. and each Employer hereby amend and restate the Plan effective as of April 27, 2004 as set forth herein. The Plan was originally effective as of September 15, 1996. The Plan was amended and restated as of July 1, 1998. The Plan was
also amended and restated as of July 1, 2002. This Plan is an unfunded deferred compensation arrangement for a select group of management or highly compensated employees who are rendering service to an Employer. 
  
 ARTICLE I. DEFINITIONS 
  

	1.1	“Beneficiary” shall mean the person or persons entitled to receive the distributions, if any, payable under the Plan upon or after a Participant’s death, to
such person or persons as such Participant’s Beneficiary. Each Participant may designate a Beneficiary by filing the proper form with the Committee. A Participant may designate one or more contingent Beneficiaries to receive any distributions
after the death of a prior Beneficiary. A designation shall be effective upon said filing, provided that it is so filed during such Participant’s lifetime, and may be changed from time to time by the Participant. 

  

	1.2	“Committee” shall mean the Compensation Committee of the Board of Directors of LSI Industries Inc. which is responsible for the administration of this Plan in
accordance with the provisions of the Plan as set forth in this document. 

  

	1.3	“Compensation” shall mean the total amount of earnings (including bonuses) paid by an Employer to an Executive or which would otherwise be paid but for a deferral
election hereunder or a salary reduction election under any Section 401(k) or 125 plan. 

  

	1.4	“Deferred Compensation Account” shall mean the account to be established by an Employer as a book reserve to reflect the amounts deferred by a Participant, the
amounts credited by the Employer, and the earnings adjustment under Article VI. A Participant’s Deferred Compensation Account shall be reduced by distributions under Section 6.2, Article VII and Article VIII. 

  

	1.5	“Effective Date” shall mean April 27, 2004 for purposes of this amendment and restatement. 

  

	1.6	“Employer” shall mean LSI Industries Inc., any affiliate of LSI Industries Inc. (whether or not incorporated) which has adopted the Plan with the consent of LSI
Industries Inc., or any successor or assignee of any of them. 

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	1.7	“Executive” shall mean any employee designated by the Committee (in conjunction with senior management of LSI Industries Inc.) as a member of the select group of
management or highly compensated employees eligible for participation in this Plan. 

  

	1.8	“Participant” shall mean any Executive who has a right to a benefit under the Plan and a person who was such at the time of his death or termination of service and
who retains, or whose Beneficiary retains, a benefit under the Plan which has not been distributed. 

  

	1.9	“Plan” shall mean the LSI Industries Inc. Nonqualified Deferred Compensation Plan as described in this instrument, amended and restated effective July 1, 2002, and,
as may be amended thereafter. 

  

	1.10	“Plan Year” shall mean the 12-consecutive month period beginning on July 1. 

  
 ARTICLE II. PARTICIPANT’S ELECTION TO DEFER 
  

	2.1	Each Executive may elect to have up to 100% of his Compensation (in whole percentages) for a Plan Year deferred and credited with earnings in accordance with the terms and
conditions of the Plan. The Committee may allow separate elections with respect to regular earnings and bonuses. 

  

	2.2	An Executive desiring to exercise an election under Paragraph 2.1 shall notify the Committee of his deferral election. Such notice must be in writing, on a form provided by the
Committee, and delivered to the Committee by such date as the Committee shall specify, but in all events before the first day of the Plan Year to which such election is to apply. 

  

	2.3	A deferral election shall be effective with respect to the entire Plan Year to which it relates and may not be modified or terminated for that Plan Year; provided, however, in the
Plan year beginning July 1, 2002, Participants may increase their deferral election during a two week period designated by the Committee. 

  

	2.4	The Compensation otherwise payable to the Executive during the Plan Year shall be reduced pursuant to the Executive’s election under this Article II. Such amounts shall be
credited to the Executive’s Deferred Compensation Account. 

  
 ARTICLE III. EMPLOYER MAKE-UP ALLOCATIONS 
  

	3.1	 If, by reason of an election under Article II, a Participant receives a smaller allocation of Employer contributions and/or forfeitures under the LSI Industries
Inc. Retirement Plan for a plan year of that plan than he would have received had no such election been made, then there shall be credited to the Participant’s Deferred Compensation Account an amount equal to the amount which bears the same
relationship to the amounts deferred under Article II and credited to the Participant’s Deferred Compensation Account during the Plan Year as the Participant’s allocations (of Employer contributions and/or forfeitures) under the LSI
Industries Inc. Retirement Plan bear to the Participant’s 

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compensation taken into account under that plan. Such amount shall be credited to the Participant’s Deferred Compensation Account at such time as the
Committee shall determine. 

  

	3.2	(a) If, by reason of the application of the compensation limitation imposed by Section 401(a)(17) of the Internal Revenue Code of 1986 (or any corresponding successor provision),
including any provision in the LSI Industries Inc. Retirement Plan providing such limitation, a Participant receives a smaller allocation of Employer contributions and/or forfeitures under the LSI Industries Inc. Retirement Plan for any plan year of
that plan than he would have received had no such limitation been in effect, then there shall be credited to his Deferred Compensation Account the amount determined under (b) below. Such amount shall be credited to the Participant’s Deferred
Compensation Account at such time as the Committee shall determine. 

  
 (b) The amount hereunder shall be equal to the amount which is the same percentage of the Participant’s compensation (as defined in the LSI Industries Inc. Retirement Plan) in excess of the compensation
limitation referred to in (a) above as the percentage allocated under the LSI Industries Inc. Retirement Plan on compensation in excess of the Social Security taxable wage base (but not in excess of the limitation referred to in (a) above).

  
 ARTICLE IV. LSI INCENTIVE ALLOCATIONS 

 

	4.1	Subject to Paragraph 4.2, each Participant shall be eligible for an Employer incentive allocation for a Plan Year, to be determined in accordance with Paragraph 4.3, if he satisfies
both of the following requirements: 

  

	 	(a)	The Participant must have elected to make Compensation deferrals under the Plan for the Plan Year of the LSI incentive allocation, the immediately preceding Plan Year and/or the
second preceding Plan Year; and 

  

	 	(b)	The Participant must be employed by an Employer at the time the Committee determines that the Performance Goal (defined below) was satisfied for the Plan Year.

  

	4.2	The Employer shall make an incentive allocation determined under Paragraph 4.3 below only if the Performance Goal (defined below) is met for the Plan Year as determined in the sole
discretion of the Committee. 

  

	 	(a)	“Performance Goal” shall mean a Return on Beginning Shareholders’ Equity as determined in the sole discretion of the Committee each year based on the annual operating
plan for the relevant fiscal year. 

  

	4.3	If the Performance Goal (defined above) is met for a Plan Year, those Participants eligible for an Employer incentive allocation under Paragraph 4.1 above shall receive such an
allocation determined by the Committee as follows: 

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	 	(a)	The Committee shall determine the number of LSI Common Shares deemed to have been acquired during the Plan Year and each of the two immediately preceding Plan Years with the
Compensation deferrals for such years. 

  
 In
making that determination, the Committee shall consider only Compensation deferrals for a Plan Year up to 40% of the Participant’s Compensation. 
  

	 	(b)	The Committee shall determine the percentages applicable to each eligible Participant for the current Plan Year and for each of the two preceding Plan Years from the following:

  

							
	 	  	Return on Average Shareholders’ Equity

	 	  	 At least Performance Goal
 but less than Performance
 Goal plus 0.5%

	 	 At least Performance
 Goal plus 0.5% but less
 than Performance Goal
 plus 1.0%

	 	 Performance Goal
 plus 1.0% or more

	Corporate Officers and Top Executives	  	20%	 	25%	 	30%
				
	All Other Employees	  	10%	 	12.5%	 	15%

  
 The Participant’s
status (as a “corporate officer” or “top executive”) as determined by the Committee at the end of the Plan Year in which he makes his Compensation deferrals will determine the level of Employer allocations under this Paragraph
attributable to such Compensation deferrals for that Plan Year. 
  

	 	(c)	The applicable percentages determined for a Participant for the Plan Year and the two immediately preceding Plan Years shall be applied against the number of LSI Common Shares
determined for the respective Plan Years (under (a) above). The resulting number shall be rounded to the nearest whole share. 

  

	 	(d)	The Committee shall determine the value of the number of LSI Common Shares (determined under (c) above) as of such date as it deems appropriate. That amount shall be credited to the
Participant’s Deferred Compensation Account at such time as the Committee shall determine. 

  
 ARTICLE V. PARTICIPANT’S INTEREST 
  
 No Participant or his designated Beneficiary shall acquire any property interest in his Deferred Compensation Account or any other assets of the Employer,
their rights being limited to receiving from the Employer a deferred payment as set forth in this Plan, and these rights are conditioned upon continued compliance with the terms and conditions of this Plan. To the extent that any Participant or
Beneficiary acquires a right to receive benefits under this Plan, such right shall be no greater than the right of any unsecured general creditor of the Employer. 

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 ARTICLE VI. CREDITING OF EARNINGS 
  

	6.1	General. There shall be credited to the Deferred Compensation Account of each Participant an additional amount of earnings (or losses) determined under this Article VI.

  

	6.2	Investment of Compensation Deferrals in LSI Common Shares. All Compensation deferrals for a Plan Year shall be credited with earnings (or losses) as though invested primarily
in LSI Common Shares. Participants who, prior to the amendment and restatement, had amounts attributable to their Deferred Compensation Account credited with earnings or losses based on any investment election other than the LSI Common Shares
investment election shall receive a cash distribution before July 1, 1998 equal to such value of all accounts subject to such other investment elections under the Plan as it then existed. 

  

	6.3	Employer Allocations. Employer allocations under Article III and Article IV shall be credited with earnings (or losses) as if it were invested primarily in LSI Common Shares.
The Participant shall have no right to elect that alternative investments be used. 

  

	6.4	Determination of Rate of Return. The Committee shall determine the rate of return throughout each Plan Year quarter or other period for the investment in LSI Common Shares
and any other investment required to maintain the liquidity of the Plan. 

  

	6.5	Investment Adjustment. For each Plan Year quarter or other period, the Participant’s Deferred Compensation Account shall be increased or decreased as if it had earned
the rate of return corresponding to the amount determined by the Committee under Paragraph 6.5. Such increase or decrease shall be based on the balance in the Deferred Compensation Account throughout the Plan Year quarter or other period and shall
be credited at such time as the Committee in its sole discretion shall determine. 

  
 ARTICLE VII. PLAN BENEFITS 
  

	7.1	(a) A Participant’s rights to that portion of his Deferred Compensation Account attributable to his Compensation deferrals under Article II (as adjusted for earnings and
losses) shall be nonforfeitable at all times. 

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 6
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 (b) A Participant shall have a vested interest in that portion of his Deferred Compensation Account
attributable to Employer allocations under Article III and Article IV (as adjusted for earnings and losses) determined in accordance with the following schedule: 
  

			
	 YEARS OF VESTED SERVICE

	  	PERCENTAGE

	 Less than two
	  	0
	 Two but less than three
	  	20
	 Three but less than four
	  	40
	 Four but less than five
	  	60
	 Five but less than six
	  	80
	 Six or more
	  	100

  
 For purposes of this
Paragraph, “Years of Vested Service” shall be determined in accordance with the provisions of the LSI Industries Inc. Retirement Plan. 
  
 (c) Notwithstanding Paragraph 7.1(b) above, Employer allocations under Article III and Article IV (as adjusted for earnings and losses) shall become fully
vested upon the Participant’s retirement after age 62 and completion of at least three (3) years of service, disability or death. 
  
 (d) Notwithstanding any provision to the contrary, Employer allocations under Article III and Article IV (as adjusted for earnings and losses) shall be
forfeited if the Participant commits any dishonest act or violates any noncompete or nonsolicitation agreement (as the Committee in its sole discretion shall determine). 
  

	7.2	(a) At the time an Executive makes his first deferral election under Article II, he shall also elect to have the amounts represented by his Deferred Compensation Account paid in one
of the following two forms commencing as soon as administratively feasible upon termination of his service with all Employers: 

  

	 	(1)	single lump sum payment, or 

  

	 	(2)	approximately equal annual installments to last not more than 10 years. 

  
 If installment payments are in effect, the Participant’s Deferred Compensation Account shall continue to be credited with earnings (or losses) under
Article VI until payment of the final installment. 
  
 (b) A
Participant may change the election referred to in (a) above. Payment shall be made in accordance with any such changed election only if the Participant terminates service with all Employers at least one year following the date of the election.
Otherwise, the payment shall be made in accordance with the election (if any) in effect immediately prior to the changed election. 

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 7
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 (c) If a Participant has no election concerning the form of benefit payment under this Paragraph 7.2
in effect at the time he terminates service with all Employers, payment shall be made in a single lump sum payment. 
  
 (d) Elections shall be made in writing, on a form provided by the Committee, and shall be made in accordance with the rules established by the Committee.

  

	7.3	Distribution of Benefits. Participants shall receive benefit payments in the form of cash. Any expenses attributable to such payment may be deducted from the
Participant’s Deferred Compensation Account. 

  

	7.4	Hardship Distribution. Subject to the approval of the Committee, a Participant may withdraw all or a portion of his Deferred Compensation Account in the event of a hardship
in cash. A hardship distribution shall only be made in the event of an unforeseeable emergency that would result in severe financial hardship to the Participant if hardship distributions were not permitted. Withdrawals of amounts because of an
unforeseeable emergency shall only be permitted to the extent reasonably needed to satisfy the emergency need. An unforeseeable emergency is defined as severe financial hardship to the Participant resulting from a sudden and unexpected illness or
accident of the Participant or a dependant of the Participant, loss of the Participant’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the
Participant. An unforeseeable emergency shall also include the death of the Participant. The circumstances that will constitute an unforeseeable emergency will depend upon the facts of each case, but, in any case, payment may not be made to the
extent such hardship is or may be received (1) through reimbursement or compensation by insurance or otherwise or (2) by cessation of deferrals under the Plan. 

  

	7.5	Other Distributions. Subject to the approval of the Committee, a Participant may withdraw all or a portion of his Deferred Compensation Account in cash in the event a written
request is made nine (9) months in advance of such withdrawal. 

  
 ARTICLE VIII. DEATH 
  
 Upon the death of a Participant prior to commencement of payment under Article VII, the amounts represented by the Participant’s Deferred Compensation Account, increased by any amounts due to be credited but not yet credited under
Article II, Article III or Article IV shall be payable to the Participant’s Beneficiary as soon as administratively feasible in the form of distribution elected by the Participant pursuant to Paragraph 7.2(a). If the Participant has already
commenced receiving the amounts represented by the Participant’s Deferred Compensation Account in the installment payment form, the installment payments shall continue to be paid to the Participant’s Beneficiary. The Beneficiary shall
receive any benefit payments in the form of cash. The Beneficiary shall be eligible to request a Hardship Withdrawal pursuant to Paragraph 7.4, or otherwise shall be able to request a change to a final single lump sum withdrawal provided that a
written request is made twelve (12) months in advance of such withdrawal. 

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 ARTICLE IX. NON-ASSIGNABLE/NON-ATTACHMENT 
  
 Except as required by law, no right of the Participant or designated
Beneficiary to receive payments under this Plan shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge, or hypothecation or to execution, attachment, levy or similar process or assignment by
operation of law and any attempt, voluntary or involuntary, to effect any such action shall be null and void and of no effect. An Employer may not assign its obligations hereunder. 
  
 ARTICLE X. CONSTRUCTION 
  
 This Plan shall be construed under the laws of the State of Ohio. Article headings are for convenience only and shall not be
considered as part of the terms and provisions of the Plan. The Committee shall have full power and authority to interpret, construe and administer this Plan. 
  

ARTICLE XI. AMENDMENT OR TERMINATION OF PLAN 
  
 The Plan may be terminated at any time or amended in whole or in part from time to time by LSI Industries Inc. provided that no such termination or
amendment may directly or indirectly reduce a Participant’s Deferred Compensation Account (other than through a distribution thereof to the Participant (or his Beneficiary in the event of his death)); and any such amendment shall be binding on
each Employer, Participant and designated Beneficiary. 
  
 ARTICLE XII. MISCELLANEOUS 
  

	12.1	Neither this Plan, nor any action of LSI Industries Inc., an Employer or the Committee, nor any election to defer Compensation hereunder shall be held or construed to confer on any
person any legal right to be continued as an employee of LSI Industries Inc. or any Employer. 

  

	12.2	LSI Industries Inc. and the Participant’s Employer shall have the right to deduct from all payments and amounts credited hereunder any taxes required by law to be withheld with
respect to any benefits under this Plan. 

  
 IN
WITNESS WHEREOF, LSI Industries Inc. and each Employer, with the consent of LSI Industries Inc., have caused this amended and restated Plan to be executed as of this 27th day of April, 2004. 
  

			
	LSI INDUSTRIES, INC.
		
	By:	 	 /s/    Ronald S. Stowell

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