Document:

Employment Agreement

 EXHIBIT 10.5 
  
 EMPLOYMENT AGREEMENT 
  
 THIS EMPLOYMENT AGREEMENT (this “Agreement”), is made under seal as of the 8th day of November, 2005 by and between TVI Corporation, or its designee (the “Company”), and Dale E. Kline (“Employee”)(each, a
“Party,” collectively, the “Parties”). 
  
 EXPLANATORY NOTE 
  
 WHEREAS, the Company
and SafteyTech International, Inc. (“STI”), of which Employee is a former employee and/or principal, entered into an Agreement and Plan of Merger, dated November 8, 2005 (the “Merger Agreement”) which provides for the merger
of STI with and into a wholly-owned subsidiary of the Company (the “Transaction”). 
  
 WHEREAS, as a key employee and/or principal of STI, Employee has been provided with open access to highly confidential and valuable information about STI’s business, clients, customers and other matters
which heretofore have been maintained as confidential at considerable expense and have provided a significant competitive advantage. 
  
 WHEREAS, as a condition to the consummation of the Transaction, the Merger Agreement contemplates, among other things, that Employee enter into
this Agreement and that this Agreement be effective upon the closing of the Transaction. 
  
 WHEREAS, the Company’s business is not confined by a geographic area, but is conducted throughout the United States and globally. 
  
 WHEREAS, the Company desires to employ Employee as an employee of the Company, and Employee desires to be employed as
an employee, on the terms and conditions provided in this Agreement. 
  
 NOW, THEREFORE, in consideration of the mutual representations, warranties, covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and
intending to be legally bound hereby, the Parties hereto agree under seal as follows: 
  
 Section 1. Term. The Company will employ Employee, and Employee will serve the Company, as an employee under the terms of this Agreement, for a term of four (4) years, commencing on the date hereof (the “Initial
Term”). Upon expiration of the Initial Term, this Agreement shall automatically renew for successive one-year periods (each a “Subsequent Term”), unless the Company provides written notice of its intent to terminate employee at least
ninety (90) days prior to the end of the Initial Term or a Subsequent Term, as the case may be, in which case this Agreement shall expire at the end of the then current Initial Term or Subsequent Term. Notwithstanding the foregoing,
Employee’s employment hereunder may be earlier terminated as provided in Section 4 or Section 5 hereof. The term of this Agreement, as in effect from time to time in accordance with the foregoing, shall be referred to herein as the
“Term.” The period of time between the commencement and the termination of Employee’s employment hereunder shall be referred to herein as the “Employment Period.” 
  

 EMPLOYMENT AGREEMENT 

 Section 2. Employment. 
  
 (a) Position and Reporting. The Company hereby employs Employee as the President and CEO of the Company’s
affiliate which is the successor via merger to STI (“Post-Merger STI”), for the Employment Period on the terms and conditions set forth in this Agreement. 
  
 (b) Authority and Duties. Employee shall exercise such authority, perform such financial, and executive duties and
functions and discharge such responsibilities as are reasonably associated with Employee’s position as President and CEO of Post-Merger STI, commensurate with the authority vested in Employee’s position, pursuant to this Agreement and
consistent with the direction provided by the President of the Company, or his designee. During the Employment Period, Employee shall devote his full business time, skill and efforts to the business of the Company, and to no other economic endeavor.
Notwithstanding the foregoing, Employee may: (i) make and manage passive personal business investments of his choice (in the case of publicly-held corporations, not to exceed five percent (5%) of the outstanding voting stock) and serve in
any capacity with any civic, educational or charitable organization without seeking or obtaining prior approval by the President of the Company, (ii) continue his ownership and activities as a partner in Kline Tax Consultants, LLC; provided
that, such ownership, activities and service do not materially interfere or conflict in any respect with the performance of his duties hereunder. Additionally, Employee may, with the approval of the President, which shall not be unreasonably
withheld, serve on the boards of directors of other corporations. 
  
 Section 3. Compensation and Benefits. 
  
 (a) Base Salary. During the Employment Period, the Company shall pay to Employee, as compensation for the performance of his duties and obligations under this Agreement, a base salary at the rate of $170,000 per annum, payable in
arrears not less frequently than monthly in accordance with the normal payroll practices of the Company (“Base Salary”). Such Base Salary shall be subject to review by the President each year for possible increase by the Company, but shall
in no event be decreased from its then-existing level during the Employment Period. 
  
 (b) Annual Bonus. During the Employment Period, Employee may have the opportunity to earn incentive compensation in accordance with the Company’s incentive programs which may be established from time to
time by the Board of Directors of the Company (the “Board”) for senior employees of the Company. The payment of any incentive compensation under any such program shall be contingent upon the achievement of certain corporate
and/or individual performance goals established by the Board in its discretion. 
  
 (c) Other Benefits. During the Employment Period, Employee shall be entitled to participate in all of the employee benefit plans, programs and arrangements in effect during the Employment Period that are
generally available to senior employees of the Company, subject to and on a basis similar to the terms, conditions and overall administration of such plans, programs and arrangements. In addition, during the Employment Period, Employee shall be
entitled to fringe benefits and perquisites comparable to those of other senior employees of the Company. In determining eligibility for such benefits based on the period employed by the Company (e.g., vacation), where permitted by applicable
law and the subject benefit plan, prior service with STI will be credited. During the Employment Period, the Company will provide Employee with the use of an automobile comparable to the automobile furnished to him immediately prior to the execution
hereof. 
  
 (d) Business Expenses. During the Employment
Period, the Company shall reimburse Employee for all documented reasonable business expenses actually incurred by Employee in the performance of his duties under this Agreement, in accordance with the Company’s policies. 
  

 EMPLOYMENT AGREEMENT 

 Section 4. Termination of Employment. 
  
 (a) Termination for Cause. The Company may, in its discretion, terminate the Employment Period hereunder, with Cause,
without prior notice. For purposes of this Agreement, the term “Cause” shall mean any one or more of the following: 
  

	 	(i)	Dishonesty, theft, misrepresentation, deceit, or fraud in connection with Employee’s performance of his duties or functions hereunder; 

  

	 	(ii)	Dishonesty, theft, misrepresentation, deceit, or fraud, other than in connection with Employee’s performance of his duties or functions hereunder, provided such actions cause
material harm, or potential material harm, to the Company, including material harm to the reputation or functioning of the Company, or to Employee’s ability to fully perform all duties or functions hereunder; 

  

	 	(iii)	Employee’s negligence, incompetence or insubordination, as determined in the good faith, reasonable discretion of the Company, to perform the duties and functions reasonably
assigned to Employee by the Company, provided however, that if the failure is such as may, in the reasonable opinion of the Company, be of the nature that the Employee was unaware of his failure to perform, the Company shall give notice of
such failure, and the Employee shall have up to fifteen (15) calendar days to remedy the deficiency to the Company’s reasonable satisfaction. In such an event, Cause shall be determined finally by the affirmative vote of a majority of the
entire Board (excluding the Employee, should he then be a member of the Board), acting in good faith and in a manner that is consistent with its fiduciary duties to maximize Company stockholder value, after the Employee has been provided the
opportunity to make a presentation to the Board; 

  

	 	(iv)	at any time prior to or after the execution of this Agreement, Employee’s conviction for, or plea of nolo contendere to, a charge or commission of a felony;

  

	 	(v)	any knowing or intentional material breach of a material representation, warranty or covenant by Employee with respect to the Transaction; 

  

	 	(vi)	any other conduct engaged in by the Employee with the intended purpose of resulting in harm or detriment to the Company including, but not limited to, the diversion of work
opportunity away from the Company, or competing with the Company; or 

  

	 	(vii)	any breach by Employee of the provisions of Sections 6-11 hereof which is either: (A) knowing or willful, or (B) has caused , or can reasonably be expected to cause, the
Company material economic harm; provided however, that if the breach is such as may, in the reasonable opinion of the Company, be of the nature that the Employee was unaware of his breach, Employee shall have thirty (30) days following
written notice from the Company to Employee to fully cure the same. 

  
 (b) Termination Upon Death or Permanent and Total Disability. The Employment Period shall be terminated immediately and automatically upon the death of Employee. The Employment Period may be terminated, at the
option of the Company, if Employee shall be rendered incapable of performing the normal duties and functions of his employment, as determined in the discretion of the Company, and by reason of a Disability (as defined herein). For purposes of this
Agreement, “Disability” shall mean 

  

 EMPLOYMENT AGREEMENT 

 
any mental or physical condition either: (i) defined to be a “disability” for purposes of eligibility to receive long term disability benefits
under the Company’s long term disability insurance policy or contract as may be in effect from time to time for the benefit of employees of the Company, or (ii) that impairs the ability of the Employee to perform the normal duties and
functions of his employment and which can be expected to last, or which has lasted, for a period of six (6) or more consecutive months from the first date of first onset. If the Employment Period is terminated by reason of the Disability of
Employee, the Company shall give thirty (30) days’ advance written notice to that effect to Employee. If the existence of a Disability hereunder is in dispute, it shall be resolved by a mutually-agreed physician. 
  
 (c) Termination for Good Reason. Employee may terminate his employment
hereunder for “Good Reason.” For purposes of this Agreement, the term “Good Reason” shall mean either: (i) a material diminution during the Term in the Employee’s duties or responsibilities (considered as a whole) as
set forth herein; (ii) a material breach by the Company of the compensation and benefits provision set forth in Section 3 hereof; subject in either event to the Company’s thirty (30) day right to cure after notification from
Employee; or (iii) Employee is required by the Company to relocate to an office or facility on a regular basis that is more than five (5) miles from STI’s present location at 5703 Industry Lane, Frederick, Maryland. 
  
 (d) Termination without Cause. The Company may terminate
Employee’s employment without Cause on thirty (30) days written notice. 
  
 (e) Termination by Employee. Employee may terminate the Employee’s employment for any reason upon one hundred eighty (180) days written notice to the Company. 
  
 Section 5. Consequences of Termination. 
  
 (a) Termination without Cause/ Good Reason. In the event of
termination of Employee’s employment hereunder by the Company without Cause (other than upon death or Disability), or Employee’s termination for Good Reason (subject to the Company’s right to cure as described in Section 4(c)
hereinabove), Employee shall be entitled to the following exit pay and benefits: 
  
 (i) Exit Pay - For a period of the lesser of nine (9) months following termination of employment or the then-remaining Term hereof (the “Severance Period”), Employee shall continue to receive payment of
Employee’s Base Salary as in effect immediately prior to such termination. 
  
 (ii) Benefits Continuation - Employee shall continue all benefits through the date of termination, and not thereafter, except that Employee will be entitled to elect continued medical coverage in accordance with the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”). 
  
 (iii) Earn Out - If such termination was either without Cause or by Employee with Good Reason and occurs (i) on or before June 30, 2006, Employee shall in addition be entitled to his proportionate share of
the Maximum Earnout Payment payable for 2006 and 2007, regardless of whether there is actual excess EBITDA for either year; (ii) on or after July 1, 2006 but before June 30, 2007 Employee shall in addition be entitled to his
proportionate share of the Maximum Earnout Payment payable for 2007 regardless of whether there is actual excess EBITDA for 2007. In either case, the Maximum Earnout Payment shall be due and payable at such time it would otherwise be due and payable
pursuant to Section 1.7 of the Merger Agreement. 
  
 (b)
Other Terminations. In the event of termination of Employee’s employment hereunder for any reason other than those specified in Section 5(a) hereof, including but not limited to Employee’s voluntary termination (other than for
a Good Reason), Employee shall not be entitled to any exit pay, severance pay or other benefits provided hereunder, except as may otherwise be required by law. 
  

 EMPLOYMENT AGREEMENT 

 (c) Accrued Rights. Notwithstanding anything to the contrary in this Section 5, in the event
of termination of Employee’s employment hereunder for any reason, Employee shall be entitled to payment of any unpaid portion of his Base Salary through the effective date of termination, and payment of any accrued but unpaid rights solely in
accordance with the terms of any employee benefit plan or program of the Company. 
  
 Section 6. Confidentiality. 
  
 (a)
Generally. All Confidential and Proprietary Information shall be and remain the sole and exclusive property of the Company, without regard to any involvement Employee may have (or have had) in the conception, development, creation, and/or
modification of same. Employee agrees that he will not at any time during the Term hereof or at any time thereafter (regardless of the reason for termination), in any fashion, form or manner, either directly or indirectly, divulge, disclose or
communicate to any Person, in any manner whatsoever, any Confidential Information and Proprietary Information (as defined herein). For purposes of this Agreement, a “Person” means any legal person, including, without limitation, any
natural person, corporation, partnership, joint venture, association, limited liability company, joint-stock company, business trust, unincorporated organization, governmental entity or any other entity of every nature, kind and description
whatsoever. 
  
 (b) “Confidential and Proprietary
Information” Defined. “Confidential and Proprietary Information” means any and all information or material: (i) disclosed or communicated by either STI or the Company to the Employee; (ii) developed, learned, or
otherwise acquired by Employee and relating, directly or indirectly, to his employment with either STI or the Company; (iii) entrusted to STI or the Company by third parties; and/or (iv) disclosed or communicated to the Employee during his
employment with either STI or the Company by any third party that owes a duty of confidentiality with respect to the information and/or material so disclosed or communicated. Confidential and Proprietary Information includes, but is not limited to,
Inventions (as defined herein), confidential information, trade secrets, copyrighted works (registered, unregistered, and/or common law), product ideas, techniques, processes, formulas, computer software source and/or object code and documentation,
algorithms, system design, architecture, logic, structure, software, mask works, data and/or any other information of any type relating to research, development, marketing, forecasts, sales, profit margins, costs, pricing, non-public financial or
accounting information, lists of actual or potential clients suppliers or partners, and/or personnel data, including without limitation, the salaries, duties, qualifications, performance levels, and terms of compensation of other Company employees,
without regard in any event to whether such information or material is or is not marked as “proprietary” and/or “confidential.” Confidential and Proprietary Information may (but need not) be contained in material such as
drawings, samples, procedures, specifications, reports, studies, analyses, client or supplier lists, budgets, cost or price lists, compilations and/or computer programs, or may be in the nature of unwritten knowledge or know-how, without regard to
whether such knowledge or know-how is protected by the law of trade secrets. 
  
 (c) Exclusions. The provisions of this Section 6 shall not apply to: (i) information that is public knowledge or available to the public other than as a result of disclosure by Employee in breach of
this Section 6; (ii) information disseminated by the Company to third parties in the ordinary course of business; (iii) information lawfully received by Employee from a third party who, based upon inquiry by Employee, is not bound by
a confidential relationship to the Company or any of its Affiliates (as defined herein); or (iv) information disclosed under a requirement of law or as directed by applicable legal authority having jurisdiction over Employee. For purposes of
this Agreement, an “Affiliate” of any Person means any Person, directly or indirectly controlling, controlled by or under common control with 

  

 EMPLOYMENT AGREEMENT 

 
such Person. A Person shall be deemed to have control when such Person possesses the power, directly or indirectly, or has the power to direct or to cause
the direction of, the management and policies of a Person through the ownership of voting securities, by contract or otherwise. 
  
 Section 7. Ownership of Company Documents. All Company Documents (as defined herein) shall be and remain the sole and exclusive property of the Company
without regard to any involvement Employee may have (or have had) in the conception, development, creation, and/or modification of such Company Documents. All Company Documents, materials, and property in Employee’s possession or under his
control shall be returned to the Company as and when requested, excepting only his personal copies of records relating to his compensation (“Personal Documents”). Even if the Company does not so request, Employee shall return all Company
Documents, materials, and property immediately upon the termination of employment without regard to the reason for the termination, and, except for his Personal Documents, will not take with him or give to any third party any Company Documents,
materials, or property or any reproduction thereof upon said termination of employment. “Company Documents” means documents or other media that contain or relate to Confidential and Proprietary Information (as defined herein) or any other
information concerning the business, operations, or plans of either STI or the Company, whether such documents have been prepared by Employee or by others. Company Documents include, but are not limited to, papers, drawings, photographs, charts,
graphs, notebooks, client lists, computer disks, tapes or printouts, sound recordings and other printed, typewritten or handwritten documents. 
  
 Section 8. Inventions; Copyrights; Further Assurances. 
  
 (a) Inventions. Employee is hereby retained in a capacity such that Employee’s responsibilities may include the making of Inventions to the
Company, as Employee is being hired, inter alia, to invent. Employee hereby transfers, assigns, and conveys to Company any and all rights he presently has or may acquire in any and all Inventions conceived, made, developed, or first reduced to
practice or learned by him and/or others during the term of his employment with either STI or the Company which relate to the Restricted Products and Services (as hereinafter defined). This assignment shall include: (i) the right to file and
prosecute patent applications on such Inventions in any and all countries, (ii) the patent applications filed and patents issuing thereon, and (iii) the right to obtain copyright, trademark or trade name protection for any related work
product. Employee shall promptly and fully disclose all such Inventions to the Company conceived, made, developed, or first reduced to practice or learned, either alone or jointly with others, during the term of his employment with either STI or the
Company and assist the Company in obtaining and protecting the rights therein (including patents thereon) in any and all countries (at the Company’s sole cost and expense); provided, however, that said Inventions will be the sole property of
the Company, whether or not patented or registered for copyright, trademark or trade name protection, as the case may be, and which relate, directly or indirectly, to his work for either STI or the Company. Such disclosure shall be made promptly
after each Invention is conceived, made, developed, or first reduced to practice or learned, whichever is earliest in time. “Invention(s)” means any and all discoveries, developments, concepts, designs, ideas, improvements, inventions
and/or works of authorship (including, but not limited to interim work product, modifications, and derivative works), whether or not patentable, copyrightable, or otherwise legally protectable. This includes, but is not limited to, any new product,
method, procedure, process, formulation, algorithm, computer program, software, technique, use, equipment, device, apparatus, system, compound, composition of matter, design or configuration of any kind, and/or any improvement(s) thereon.

  
 (b) Copyrights. Employee agrees to promptly and fully
disclose to the Company any and all copyrighted (registered, unregistered, or common law) and potentially copyrightable subject matter that Employee conceives, creates, develops, or modifies during the term of his employment by either STI or the
Company and which relates, directly or indirectly, to his work as an employee, including without 

  

 EMPLOYMENT AGREEMENT 

 
limitation, all computer programs, documentation, technical descriptions for products, user’s guides, and/or illustrations, including any contributions
to such subject matter (“Copyright Product”). All Confidential and Proprietary Information which is Copyright Product shall be considered “work made for hire” under the copyright laws of the United States, and the copyright for
any and all Copyright Product shall automatically be and remain the sole and exclusive property of the Company. Furthermore, Employee hereby transfers and assigns to the Company any and all rights he presently possesses or may acquire in any and all
Copyright Product which, for any reason, does not qualify as “work made for hire”. If any Copyright Product embodies or reflects any of preexisting rights, Employee hereby grants to the Company an irrevocable, perpetual, nonexclusive,
worldwide, royalty-free right and license to use, reproduce, display, perform, distribute copies of and prepare derivative works based upon such preexisting rights and to authorize others to do any or all of the foregoing. 
  
 (c) Further Assurances. During and at anytime after employment
by the Company and upon Company request, Employee will execute all papers in a timely manner and do all reasonable acts necessary or desired to apply for, secure, maintain and/or enforce patents, copyrights, trademarks and any other legal rights in
the United States and any foreign countries in any and all Inventions, Confidential and Proprietary Information and Copyright Product and other intangible assets owned by and/or assigned to Company under this Agreement or otherwise. Employee will
execute all papers and do any and all reasonable acts necessary or desired to assign and transfer to Company, or any Person to whom Company is obligated to assign its rights, Employee’s entire right, title, and interest in and to any and all
Inventions, Confidential and Proprietary Information and Copyright Product and other intangible assets. In the event that Company is unable for any reason whatsoever to secure Employee’s signature to any document reasonably necessary or desired
for any of the foregoing purposes (including, but not limited to, renewals, extensions, re-registrations, continuations, divisions or continuations in part), Employee hereby irrevocably designates and appoints the Company and its duly authorized
officers and agents as his agents and attorneys-in-fact to act for and in his behalf and in his stead, but only for the purpose of executing and filing any such document(s) and doing all other lawfully permitted acts to accomplish the foregoing
purposes with the same legal force and effect as if executed by Employee. 
  
 Section 9. Non-Competition. Employee agrees that he shall not during the Employment Period and during the Restricted Period (as herein defined), directly or indirectly, alone or as principal, partner, joint venture, officer,
director, employee, consultant, agent, independent contractor or stockholder, or in any other capacity whatsoever, engage in, consult or assist any other entity in any manner or in any capacity whatsoever, in designing, developing, manufacturing,
installing, servicing, maintaining and/or otherwise marketing powered air purifying respirators equipment, dual air supply units and any other respiratory product for chemical, biological, radiological and nuclear protection, including all
associated accessories, supplies and products; or (b) performing any other business activities which are the same or substantially similar to any business activity provided or performed by the Company at anytime during the Term (the
“Restricted Products and Services”). The foregoing restriction will apply throughout North America, or such other geographical area as a court shall find reasonably necessary to protect the goodwill and business of the Company and its
Affiliates (the “Restricted Territory”). For purposes of this Agreement, the term “Restricted Period” shall mean the period of time following the date of the Employee’s termination equal to the longer of:
(i) twenty-four (24) months; or (ii) forty-eight (48) months less the number months that have elapsed from the date hereof until the date of the Employee’s termination (or if such calculated period is unenforceable by law,
then for such period as shall be enforceable). 
  
 Section 10.
Non-Solicitation of Employees. Employee agrees that he shall not during the Employment Period and during the Restricted Period, directly or indirectly, alone or as principal, partner, joint venturer, officer, director, employee, consultant,
agent, independent contractor or stockholder, or in any other capacity whatsoever: (i) hire, solicit for hire, employ, retain, or enter into any employment, agency, consulting or other similar agreement or arrangement with, any Person (other
than either Employee’s wife or 

  

 EMPLOYMENT AGREEMENT 

 
son) who, within the twenty-four (24) month period prior to the termination of Employee’s employment by the Company, was an employee of STI, the
Company or a Company Affiliate, (ii) induce or attempt to induce such Person to terminate his employment with the Company or any Company Affiliate. It is agreed and understood that, subject to the remaining provisions hereof, following
termination of the Term, Employee shall be permitted to hire, solicit for hire, employ, retain, or enter into any employment, agency, consulting or other similar agreement or arrangement with, either Employee’s wife or son. 
  
 Section 11. Non-Solicitation of Clients or Customers. Employee agrees that he
shall not during the Employment Period and during the Restricted Period, directly or indirectly, alone or as principal, partner, joint venturer, officer, director, employee, consultant, agent, independent contractor or stockholder, or in any other
capacity whatsoever, directly or indirectly, for his own account, or for the account of others, solicit orders for Restricted Products and Services from, or provide Restricted Products and Services to or for, any Person that was a customer or client
of STI, the Company or any Company Affiliate (or which STI, the Company or any Company Affiliate was soliciting to be a customer or client) at anytime during the twenty-four (24) month period preceding the termination of Employee’s
employment. 
  
 Section 12. Breach of Restrictive Covenants; Specific
Enforcement; Passive Investments. 
  
 (a) The restrictions
contained in Sections 6 through 11 hereof, inclusive, are necessary for the protection of the business and goodwill of the Company and its Affiliates and are considered by the Employee to be reasonable for such purposes. It is acknowledged that it
may be impossible to determine the monetary damages incurred by Employee’s violation of this Agreement and that any violation of this Agreement will cause irreparable, immediate and substantial injury to the Company. Accordingly, Employee
agrees that Company will be entitled, in addition to all other rights and remedies which may be available, to an injunction enjoining and restraining Employee and any other involved party from committing a violation of this Agreement and Employee
agrees to the issuance and entry of such injunction. In addition, Company will be entitled to such damages as it can demonstrate it has sustained by reason of the violation of this Agreement by Employee and/or others. With specific regard to the
restrictions contained in Section 9 hereof, in the event a court should find that the Restricted Territory should encompass some geographic territory other than North America despite the Parties agreement that such restriction is necessary for
the protection of the business and goodwill of the Company, the Parties intend that the covenant contained therein shall be construed as a series of separate covenants, one for each city, county, state and country of the Restricted Territory. In
such an event, except for geographic coverage, each such separate covenant shall be deemed identical in terms of the covenant contained therein. 
  
 (b) Notwithstanding the terms of Sections 6 through 11 hereof, inclusive, Employee shall be permitted to be a passive owner of not more than 5% of the
outstanding stock of a corporation which is publicly traded, so long as Employee has no active participation in the business of the corporation. 
  
 (c) All payments otherwise to be made by the Company to the Employee hereunder may be set-off in accordance with the set-off provisions as set forth
in Section 7.5 of the Merger Agreement. 
  
 Section 13. No
Breach of Prior Agreement. The performance of Employee’s duties as an Company employee will not breach any invention, assignment, proprietary information, non-competition, confidentiality, or other agreement or understanding with any former
employer or other Person, and Employee will not use in the performance of his duties any documents or materials of a former employer that are not generally available to the public or have not been legally transferred to Company. Company understands
that situations may arise in the future that may require Company to discuss with his future employers the existence of this Agreement and Employee hereby expressly grants Company permission to do so. 
  

 EMPLOYMENT AGREEMENT 

 Section 14. Notices. For the purposes of this Agreement, notices, demands and all other communications
provided for in this Agreement shall be in writing and shall be deemed to have been duly given when delivered or (unless otherwise specified) mailed by United States certified or registered mail, return receipt requested, postage prepaid, addressed
as follows: 
  
 If to Employee: 
  
 Dale E. Kline 
 4005 Carrick Court 
 Emmitsburg,
Maryland 21727 
  
 With copy to: 
  
 Arent Fox, PLLC 
 1050 Connecticut Avenue, NW 
 Washington, DC
20036 
 Attention: Richard N. Gale, Esq. 
  
 If to the Company: 
  
 TVI Corporation 
 7100 Holladay Tyler Road,
Suite 300 
 Glen Dale, Maryland 20769 
 Attention: Richard V. Priddy 
  
 With copy to:

  
 Whiteford, Taylor & Preston L.L.P. 
 7 St. Paul Street 
 Baltimore, Maryland 21202

 Attention: Frank S. Jones, Jr., Esq. 
  
 or to such other address as a party hereto shall designate to the other party by like notice, provided that notice of a change of address shall be effective only upon
receipt thereof. Notice shall be deemed duly given when received by the addressee thereof, provided that any Notice sent by registered or certified mail shall be deemed to have been duly given three (3) days from date of deposit in the United
States mails, unless sooner received. 
  
 Section 15. Waiver of
Breach. Any waiver of any breach of the Agreement shall not be construed to be a continuing waiver or consent to any subsequent breach on the part of either Employee or of the Company. 
  
 Section 16. Assignment. Employee may not assign his rights or delegate his duties
under this Agreement; provided, however, that this Agreement shall inure to the benefit of and be binding upon the heirs, assigns or designees of Employee to the extent of any payments due to Employee hereunder. Notwithstanding anything to the
contrary contained herein, the Company shall be free to assign its rights and delegate its duties under this Agreement, and this Agreement shall inure to the benefit of and be binding upon the successors and assigns of the Company, all as though
such successors and assigns of the Company and their respective successors and assigns were the Company. As used in this Agreement, the term “Company” shall be deemed to refer to any such successor or assign of the Company referred to in
the preceding sentence. 
  

 EMPLOYMENT AGREEMENT 

 Section 17. Withholding of Taxes. All payments required to be made by the Company to Employee under this
Agreement shall be subject to the withholding of such amounts, if any, relating to tax, and other payroll deductions as the Company may reasonably determine it should withhold pursuant to any applicable law or regulation. 
  
 Section 18. Severability. To the extent any provision of this Agreement or
portion thereof shall be invalid or unenforceable, it shall be considered deleted therefrom and the remainder of such provision and of this Agreement shall be unaffected and shall continue in full force and effect. 
  
 Section 19. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument. 
  
 Section 20. Governing Law. This Agreement has been entered into within the State of Maryland and shall be deemed performed therein. This Agreement shall be
construed, interpreted and enforced in accordance with the laws of the State of Maryland, without regard to conflicts of law principles. The Company and Employee hereby agree that any suit, action or proceeding arising out of or based upon any claim
under this Agreement shall be instituted against Employee in state or federal court in Maryland, and Employee and Company waive any objection they may have to the laying of venue of such suit, action or proceeding therein. EACH OF THE PARTIES
HERETO HEREBY VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT EACH MAY HAVE TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT. 
  
 Section 21. Amendments. No provisions of this Agreement may be modified, waived
or discharged unless such waiver, modification or discharge is agreed to in writing signed by Employee and an officer of the Company. No waiver by either Party hereto at any time of any breach by the other party hereto of, or compliance with, any
condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreements or representations, oral or
otherwise, express or implied, with respect to the subject matter hereof have been made by either Party which are not set forth expressly in this Agreement. 
  
 Section 22. No Third Party Beneficiaries. This Agreement shall not confer any rights or remedies upon any Person other than the Parties and their respective
successors and permitted assigns. 
  
 Section 23. Press Releases and
Public Announcements. Employee shall not issue any press release or make any public announcement relating to the subject matter of this Agreement without the prior written approval of the Company. The Company may use Employee’s name,
photograph, likeness, voice, other personal attribute, and biographical and other information in any media during his employment for any business purpose. 
  
 Section 24. Headings; Explanatory Note. The section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the
meaning or interpretation of this Agreement. The explanatory appearing at the beginning of this Agreement are not mere recitals but are an integral part of the agreement embodied hereby. 
  

 EMPLOYMENT AGREEMENT 

 Section 25. Expenses. Each of the Parties will bear its own costs and expenses (including legal fees and
expenses) incurred in connection with this Agreement and the transactions contemplated hereby. Notwithstanding the foregoing, the Parties agree that in the event that a Party is successful in whole or in part in any legal action against the other
Party under this Agreement (including, without limitation, an action to enforce the restrictions contained in Sections 6 through 11 hereof, inclusive), the prevailing Party will be entitled to recover all costs associated with such action, including
reasonable attorneys’ fees, from the other Party. 
  
 Section 26.
Construction. 
  
 (a) Any reference to any federal, state,
local, or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise. Words in the singular shall be held to include the plural and vice versa, and words of one
gender shall be held to include the other genders as the context requires. The terms “hereof,” “herein,” and “herewith” and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement
as a whole (including all of the Schedules and Exhibits hereto) and not to any particular provision of this Agreement. The word “including” and words of similar import when used in this Agreement shall mean “including, without
limitation,” unless otherwise specified. The word “or” shall not be exclusive, and references to a Person are also references to its permitted successors and assigns. 
  
 (b) This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation
against the party drafting or causing any instrument to be drafted. 
  
 Section 27. Entire Agreement. This Agreement constitutes the entire agreement by the Company and Employee with respect to the subject matter hereof and supersedes any and all prior agreements or understandings between Employee
and the Company with respect to the subject matter hereof, whether written or oral. This Agreement may be amended or modified only by a written instrument executed by Employee and the Company. 
  
 Section 28. Survival. The obligations of Sections 5 through 12, inclusive, and
this Section 28 shall survive any termination or expiration of this Agreement. 
  

 EMPLOYMENT AGREEMENT 

 IN WITNESS WHEREOF, the parties have executed this Agreement under seal as of the date first set
forth above. 
  

			
	TVI CORPORATION
		
	By:	 	 /S/ RICHARD V. PRIDDY

	 	 	Richard V. Priddy, President and CEO
	
	EMPLOYEE:
		
	 	 	 /s/ DALE E. KLINE

	 	 	Dale E. KlineLionbridge 2005 Incentive Stock Plan (the "2005 Plan").

 Exhibit 10.1 
  
 LIONBRIDGE TECHNOLOGIES, INC. 
  
 2005 STOCK INCENTIVE PLAN 
  

	1.	 	Purpose 

  
 The purpose of this 2005 Stock Incentive Plan (the “Plan”) of Lionbridge Technologies, Inc., a Delaware corporation (the “Company”),
is to advance the interests of the Company’s stockholders by enhancing the Company’s ability to attract, retain and motivate persons who are expected to make important contributions to the Company and by providing such persons with equity
ownership opportunities and performance-based incentives that are intended to align their interests with those of the Company’s stockholders. Except where the context otherwise requires, the term “Company” shall include any of the
Company’s present or future parent or subsidiary corporations as defined in Sections 424(e) or (f) of the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder (the “Code”) and any other
business venture (including, without limitation, joint venture or limited liability company) in which the Company has a controlling interest, as determined by the Board of Directors of the Company (the “Board”). 
  

	2.	 	Eligibility 

  
 All of the Company’s employees, officers, directors, consultants and advisors are eligible to receive options, stock appreciation rights, restricted
stock, restricted stock units and other stock-based awards (each, an “Award”) under the Plan. Each person who receives an Award under the Plan is deemed a “Participant”. 
  

	3.	 	Administration and Delegation 

  
 (a) Plan Administration and Discretionary Authority. 
  
 (1) The Plan will be administered by the Nominating and Compensation Committee of the Board or such other committee of the Board as may be
designated by the Board to administer the Plan (a “Committee”), which committee shall consist of two or more members of the Board, each of whom is both a “non-employee director” within the meaning of Rule 16b-3 promulgated
under the Exchange Act and an “outside director” within the meaning of such term as contained in applicable regulations interpreting section 162(m) of the Code; provided, however, that with respect to the application of the Plan to Awards
made to non-employee director of the Company, the term “Committee” means the Board. To the extent that no Committee exists that has the authority to administer the Plan, the functions of the Committee shall be exercised by the Board. If
for any reason the appointed Committee does not meet the requirements of Rule 16b-3 or section 162(m) of the Code, such noncompliance with such requirements shall not affect the validity of Awards, grants, interpretations or other actions of the
Committee. 
  
 (2) The Committee shall have
authority to grant Awards and to adopt, amend and repeal such administrative rules, guidelines and practices relating to the Plan as it shall deem advisable. Without limiting the generality of the preceding sentence, the Committee shall have the
exclusive right to: (i) interpret the Plan and the Award Agreements executed hereunder; (ii) decide all questions concerning eligibility for, and the amount of, Awards granted under the Plan; (iii) construe any ambiguous provision of
the Plan or any Award Agreement; (iv) prescribe the form of Award Agreements; (v) correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award Agreement; (vi) issue 

 
administrative guidelines as an aid to administering the Plan and make changes in such guidelines as the Committee from time to time deems proper;
(vii) make regulations for carrying out the Plan and make changes in such regulations as the Committee from time to time deems proper; (viii) determine whether Awards should be granted singly or in combination; (ix) to the extent
permitted under the Plan, grant waivers of Plan terms, conditions, restrictions and limitations; (x) subject to the terms of the Plan, accelerate the exercise, vesting or payment of an Award when such action or actions would be in the best
interests of the Company; (xi) require Participants to hold a stated number or percentage of shares of Common Stock acquired pursuant to an Award for a stated period; and (xii) take any and all other actions the Committee deems necessary
or advisable for the proper operation or administration of the Plan. The Committee shall have authority in its sole discretion with respect to all matters related to the discharge of its responsibilities and the exercise of its authority under the
Plan, including without limitation its construction of the terms of the Plan and its determination of eligibility for participation in, and the terms of Awards granted under, the Plan. The decisions of the Committee and its actions with respect to
the Plan shall be final, conclusive and binding on all persons having or claiming to have any right or interest in or under the Plan, including without limitation Participants and their respective permitted transferees, estates, beneficiaries and
legal representatives. No director or person acting pursuant to the authority delegated by the Committee shall be liable for any action or determination relating to or under the Plan made in good faith. In the case of an Award intended to be
eligible for the performance-based compensation exemption under section 162(m) of the Code, the Committee shall exercise its discretion consistent with qualifying the Award for such exemption. 
  
 (b) Delegation. To the extent permitted by applicable law, the
Committee may delegate to one or more directors and/or officers of the Company the power to grant Awards to employees or officers of the Company or any of its present or future subsidiary corporations and to exercise such other powers under the Plan
as the Committee may determine, provided that the Committee shall fix the terms of the Awards to be granted by such officers (including the exercise price of such Awards, which may include a formula by which the exercise price will be determined)
and the maximum number of shares subject to Awards that the officers may grant; provided further, however, that no officer shall be authorized to grant Awards to any “executive officer” of the Company (as defined by Rule 3b-7 under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) or to any “officer” of the Company (as defined by Rule 16a-1 under the Exchange Act). 
  

	4.	 	Stock Available for Awards 

  
 (a) Number of Shares. Subject to adjustment under Section 10, Awards may be made under the Plan for up to 4,000,000 shares of common stock,
$0.01 par value per share, of the Company (the “Common Stock”). If any Award expires or is terminated, surrendered or canceled without having been fully exercised or is forfeited in whole or in part (including as the result of shares of
Common Stock subject to such Award being repurchased by the Company at the original issuance price pursuant to a contractual repurchase right) or results in any Common Stock not being issued, the unused Common Stock covered by such Award shall again
be available for the grant of Awards under the Plan. For purposes of counting the number of shares available for the grant of Awards under the Plan, (i) shares of Common Stock covered by independent SARs shall be counted against the number of
shares available for the grant of Awards under the Plan; provided, however, that independent SARs that may be settled in cash only shall not be so counted; (ii) if any Award (A) expires or is terminated, surrendered or canceled without
having been fully exercised or is forfeited in whole or in part (including as the result of shares of Common Stock subject to such Award being repurchased by the Company at the original issuance price pursuant to a contractual repurchase right) or
(B) results in any Common Stock not being issued (including as a 

 
result of an independent SAR that was settleable either in cash or in stock actually being settled in cash), the unused Common Stock covered by such Award
shall again be available for the grant of Awards under the Plan; provided, however, in the case of Incentive Stock Options (as hereinafter defined), the foregoing shall be subject to any limitations under the Code; and (iii) shares of Common
Stock tendered to the Company by a Participant to (A) purchase shares of Common Stock upon the exercise of an Award or (B) satisfy tax withholding obligations (including shares retained from the Award creating the tax obligation) shall not
be added back to the number of shares available for the future grant of Awards under the Plan. However, in the case of Incentive Stock Options (as hereinafter defined), the foregoing provisions shall be subject to any limitations under the Code.
Shares issued under the Plan may consist in whole or in part of authorized but unissued shares or treasury shares. 
  
 (b) Sub-limits. Subject to adjustment under Section 10, the following sub-limits on the number of shares subject to Awards shall apply:

  
 (1) Section 162(m) Per-Participant
Limit. The maximum number of shares of Common Stock with respect to which Awards may be granted to any Participant under the Plan shall be 600,000 per calendar year and the maximum number of shares of Common Stock that may be subject to
Awards other than Options and SARs granted under the Plan to any one Participant per calendar year is 300,000. The maximum number of shares of Common Stock that may be subject to a Performance Award that provides for a performance period longer than
one calendar year shall be based upon the foregoing annual maximum limits multiplied by the number of full calendar years in the performance period. For purposes of the foregoing limit, the combination of an Option in tandem with an SAR (as each is
hereafter defined) shall be treated as a single Award. The per-Participant limit described in this Section 4(b)(1) shall be construed and applied consistently with Section 162(m) of the Code or any successor provision thereto, and the
regulations thereunder (“Section 162(m)”). 
  
 (2) Limit on Awards other than Options and SARS. The maximum number of shares with respect to which Awards of Restricted Stock, Restricted Stock Units or Other Stock Unit Awards payable in the form of Common Stock other than Options
and SARs, or which do not condition vesting upon the achievement of specified performance goals pursuant to Section 11(i), is 1,500,000. 
  

	5.	 	Stock Options 

  
 (a) General. The Committee may grant options to purchase Common Stock (each, an “Option”) and determine the number of shares of Common
Stock to be covered by each Option, the exercise price of each Option and the conditions and limitations applicable to the exercise of each Option, including conditions relating to applicable federal or state securities laws, as it considers
necessary or advisable. An Option which is not intended to be an Incentive Stock Option (as hereinafter defined) shall be designated a “Nonstatutory Stock Option”. 
  
 (b) Incentive Stock Options. An Option that the Committee intends to be an “incentive stock option” as
defined in Section 422 of the Code (an “Incentive Stock Option”) shall only be granted to employees of Lionbridge Technologies, Inc., any of Lionbridge Technologies, Inc.’s present or future parent or subsidiary corporations as
defined in Sections 424(e) or (f) of the Code, and any other entities the employees of which are eligible to receive Incentive Stock Options under the Code, and shall be subject to and shall be construed consistently with the requirements of
Section 422 of the Code. The Company shall have no liability to a Participant, or any other party, if an Option (or any part thereof) that is intended to be an Incentive Stock Option is not an Incentive Stock Option or for any action taken by
the Committee pursuant to Section 11(f), including without limitation the conversion of an Incentive Stock Option to a Nonstatutory Stock Option. 

 (c) Exercise Price. The Committee shall establish the exercise price of each Option and specify
such exercise price in the applicable option agreement provided, however, that the exercise price of such Option shall not be less than 100% than the fair market value of the Common Stock on the date of grant. 
  
 (d) Duration of Options. Each Option shall be exercisable at such
times and subject to such terms and conditions as the Committee may specify in the applicable option agreement. However, no option will remain exercisable for a period greater than ten years from the date of grant and no option will become
exercisable in whole or in part in less than one year unless: 
  
 (1) the Option was granted as an inducement to an individual becoming an employee of the Company or in connection with the individual’s promotion to a more senior position within the Company (as determined in the
discretion of the Committee); provided, however that no more than 7.5% of the total number of shares authorized under the Plan may be so issued in the aggregate during the term of the Plan; or 
  
 (2) the Option was granted in lieu of a previously earned
cash award. 
  
 (e) Exercise of Option. Options may be
exercised by delivery to the Company of a written notice of exercise signed by the proper person or by any other form of notice (including electronic notice) approved by the Committee together with payment in full as specified in Section 5(f)
for the number of shares for which the Option is exercised. Shares of Common Stock subject to the Option will be delivered by the Company following exercise either as soon as practicable or, subject to such conditions as the Committee shall specify,
on a deferred basis (with the Company’s obligation to be evidenced by an instrument providing for future delivery of the deferred shares at the time or times specified by the Committee). 
  
 (f) Payment Upon Exercise. Common Stock purchased upon the exercise of
an Option granted under the Plan shall be paid for as follows: 
  
 (1) in cash or by check, payable to the order of the Company; 
  
 (2) except as the Board may otherwise provide in an option agreement, by (i) delivery of an irrevocable and unconditional undertaking
by a creditworthy broker to deliver promptly to the Company sufficient funds to pay the exercise price and any required tax withholding or (ii) delivery by the Participant to the Company of a copy of irrevocable and unconditional instructions
to a creditworthy broker to deliver promptly to the Company cash or a check sufficient to pay the exercise price and any required tax withholding; 
  
 (3) when the Common Stock is registered under the Securities Exchange Act of 1934 (the “Exchange Act”), by delivery of shares of
Common Stock owned by the Participant valued at their fair market value as determined by (or in a manner approved by) the Committee (“Fair Market Value”), provided (i) such method of payment is then permitted under applicable law,
(ii) such Common Stock, if acquired directly from the Company, was owned by the Participant for such minimum period of time, if any, as may be established by the Committee in its discretion and (iii) such Common Stock is not subject to any
repurchase, forfeiture, unfulfilled vesting or other similar requirements; 
  
 (4) to the extent permitted by applicable law including, without limitation, Section 402 of the Sarbanes-Oxley Act and the rules thereunder, and by the Board, by (i) delivery of a promissory note of the
Participant to the Company on terms determined by the Committee, or (ii) payment of such other lawful consideration as the Board may determine; or 
  
 (5) by any combination of the above permitted forms of payment. 

 (g) Substitute Options. In connection with a merger or consolidation of an entity with the Company
or the acquisition by the Company of property or stock of an entity, the Committee may grant Options in substitution for any options or other stock or stock-based awards granted by such entity or an affiliate thereof. Substitute Options may be
granted on such terms as the Committee deems appropriate in the circumstances, notwithstanding any limitations on Options contained in the other sections of this Section 5 or in Section 2. Substitute Options shall not count against the
overall share limit set forth in Section 4(a), except as may be required by reason of Section 422 and related provisions of the Code. 
  
 (h) No Reload Rights. No Option granted under the Plan shall contain any provision entitling the optionee to the automatic grant of additional
Options in connection with any exercise of the original Option. 
  
 (i) Limitation on Repricing. Unless such action is approved by the Company’s stockholders: (1) no outstanding Option granted under the Plan may be amended to provide an exercise price per share that is lower than the
then-current exercise price per share of such outstanding Option (other than adjustments pursuant to Section 10) and (2) the Committee may not cancel any outstanding option (whether or not granted under the Plan) and grant in substitution
therefore new Awards under the Plan covering the same or a different number of shares of Common Stock and having an exercise price per share lower than the then-current exercise price per share of the cancelled option. 
  

	6.	 	Director Awards. 

  
 (a) Initial Grant. Upon the commencement of service on the Board by any individual who is not then an employee of the Company or any subsidiary of
the Company, and who does not beneficially hold, directly or indirectly, more than 1% of the outstanding shares of the Company’s equity securities, the Company shall grant to such person a Nonstatutory Stock Option to purchase 20,000 shares of
Common Stock (subject to adjustment under Section 10). 
  
 (b) Annual Grant. On the date of each annual meeting of stockholders of the Company (or on June 30 of any calendar year, if the annual meeting of stockholders has not occurred by such date), the Company shall grant to each
member of the Board of Directors of the Company who is both serving as a director of the Company immediately prior to and immediately following such annual meeting and who is not then an employee of the Company or any of its subsidiaries and who
does not beneficially hold, directly or indirectly, more than 1% of the outstanding shares of the Company’s equity securities, a Nonstatutory Stock Option to purchase 10,000 shares of Common Stock (subject to adjustment under Section 10);
provided, however, that a director shall not be eligible to receive an option grant under this Section 6(b) until such director has served on the Board for at least six months. 
  
 (c) Terms of Director Options. Options granted under this Section 6 shall (i) have an exercise price equal
to the closing sale price (for the primary trading session) of the Common Stock on The Nasdaq Stock Market or the national securities exchange on which the Common Stock is then traded on the trading date immediately prior to the date of grant (and
if the Common Stock is not then traded on The Nasdaq Stock Market or a national securities exchange, the fair market value of the Common Stock on such date as determined by the Committee), (ii) vest in at the rate of 25% on the first
anniversary of the date of grant, and 12.5% on each six month anniversary of the date of grant thereafter, provided that the individual is serving on the Committee on such date (or in the case of an option granted under Section 6(b), if
earlier, on the date which is one business day prior to date of the Company’s next annual meeting), provided that no additional vesting shall take place after the Participant ceases to serve as a director and further provided that the Committee
may provide for accelerated 

 
vesting in the case of death or disability, (iii) expire on the earlier of 10 years from the date of grant or 60 days following cessation of service on
the Committee and (iv) contain such other terms and conditions as the Committee shall determine, including but not limited to, provisions for accelerated vesting upon a change of control of the Company. 
  
 (d) Committee Discretion. The Committee retains the specific authority
to from time to time increase or decrease the number of shares subject to options granted under this Section 6 or to grant other award forms as permitted under the Plan, subject to the provisions, subject to the provisions of
Section 4(b)(3). 
  

	7.	 	Stock Appreciation Rights. 

  
 (a) General. A Stock Appreciation Right, or SAR, is an Award entitling the holder, upon exercise, to receive an amount in Common Stock or cash or a
combination thereof (such form to be determined by the Committee) determined by reference to appreciation, from and after the date of grant, in the fair market value of a share of Common Stock. No SAR will become exercisable in whole or in part in
less than one year. The date as of which such appreciation or other measure is determined shall be the exercise date. 
  
 (b) Grants. Stock Appreciation Rights may be granted in tandem with, or independently of, Options granted under the Plan. 
  
 (1) Tandem Awards. When Stock Appreciation Rights are
expressly granted in tandem with Options, (i) the Stock Appreciation Right will be exercisable only at such time or times, and to the extent, that the related Option is exercisable (except to the extent designated by the Committee in connection
with a Reorganization Event) and will be exercisable in accordance with the procedure required for exercise of the related Option; (ii) the Stock Appreciation Right will terminate and no longer be exercisable upon the termination or exercise of
the related Option, except to the extent designated by the Committee in connection with a Reorganization Event and except that a Stock Appreciation Right granted with respect to less than the full number of shares covered by an Option will not be
reduced until the number of shares as to which the related Option has been exercised or has terminated exceeds the number of shares not covered by the Stock Appreciation Right; (iii) the Option will terminate and no longer be exercisable upon
the exercise of the related Stock Appreciation Right; and (iv) the Stock Appreciation Right will be transferable only with the related Option. 
  
 (2) Independent SARs. A Stock Appreciation Right not expressly granted in tandem with an Option will become exercisable at such
time or times, and on such conditions, as the Committee may specify in the SAR Award. 
  
 (c) Exercise. Stock Appreciation Rights may be exercised by delivery to the Company of a written notice of exercise signed by the proper person or by any other form of notice (including electronic notice)
approved by the Committee, together with any other documents required by the Committee. 
  

	8.	 	Restricted Stock; Restricted Stock Units. 

  
 (a) General. The Committee may grant Awards entitling recipients to acquire shares of Common Stock (“Restricted Stock”), subject to the
right of the Company to repurchase all or part of such shares at their issue price or other stated or formula price (or to require forfeiture of such shares if issued at no cost) from the recipient in the event that conditions specified by the
Committee in the applicable Award are not satisfied prior to 

 
the end of the applicable restriction period or periods established by the Committee for such Award. Instead of granting Awards for Restricted Stock, the
Committee may grant Awards entitling the recipient to receive shares of Common Stock to be delivered at the time such shares of Common Stock vest (“Restricted Stock Units”) (Restricted Stock and Restricted Stock Units are each referred to
herein as a “Restricted Stock Award”). 
  
 (b) Terms
and Conditions. The Committee shall determine the terms and conditions of a Restricted Stock Award, including the conditions for repurchase (or forfeiture) and the issue price, if any. 
  
 (c) Limitations on Vesting. 
  
 (1) Restricted Stock Awards that vest based on the passage
of time alone shall be zero percent vested prior to the first anniversary of the date of grant, no more than 33- 1/3% vested prior to the second anniversary of the date of grant, and no more than 66- 2/3% vested
prior to the third anniversary of the date of grant. Restricted Stock Awards that vest upon the passage of time and provide for accelerated vesting based on performance shall not vest prior to the first anniversary of the date of grant. This
subsection (c)(1) shall not apply to (A) Awards granted pursuant to Section 11(i), provided that such Awards shall not vest prior to the first anniversary of the date of grant, (B) Awards granted through the assumption of, or in
substitution for, outstanding awards previously granted to individuals who became employees of the Company as a result of a merger, consolidation, acquisition or other corporate transaction involving the Company, (C) Awards granted as an
inducement to employment with the Company or in connection with an individual’s promotion to a more senior position within the Company (as determined in the discretion of the Committee), provided, however that no more than 7.5% of the total
number of shares authorized under the Plan may be so issued in the aggregate during the term of the Plan and provided further, that such Awards shall not vest prior to the first anniversary of the date of grant, or (D) Awards granted in lieu of
a previously earned cash award. 
  
 (2) Notwithstanding any other provision of this Plan, the Committee may, in its discretion, either at the time a Restricted Stock Award is made or at any time thereafter, waive its right to repurchase shares of Common Stock (or waive the
forfeiture thereof) or remove or modify any part or all of the restrictions applicable to the Restricted Stock Award, provided that the Committee may only exercise such rights in extraordinary circumstances which shall include, without limitation,
death or disability of the Participant; a merger, consolidation, sale, reorganization, recapitalization, or change in control of the Company; or any other nonrecurring significant event affecting the Company, a Participant or the Plan. 

 
 (d) Stock Certificates. Any stock certificates issued in respect of
a Restricted Stock Award shall be registered in the name of the Participant and, unless otherwise determined by the Committee, deposited by the Participant, together with a stock power endorsed in blank, with the Company (or its designee). At the
expiration of the applicable restriction periods, the Company (or such designee) shall deliver the certificates no longer subject to such restrictions to the Participant or if the Participant has died, to the beneficiary designated, in a manner
determined by the Committee, by a Participant to receive amounts due or exercise rights of the Participant in the event of the Participant’s death (the “Designated Beneficiary”). In the absence of an effective designation by a
Participant, “Designated Beneficiary” shall mean the Participant’s estate. 
  

	9.	 	Other Stock-Based Awards. 

  
 Subject to the vesting limitations and exceptions applicable to Restricted Stock Awards under Section 8(c) hereof, other Awards of shares of Common
Stock, and other Awards that are valued in whole or in part by 

 
reference to, or are otherwise based on, shares of Common Stock or other property, may be granted hereunder to Participants (“Other Stock Unit
Awards”), including without limitation Awards entitling recipients to receive shares of Common Stock to be delivered in the future. Such Other Stock Unit Awards shall also be available as a form of payment in the settlement of other Awards
granted under the Plan or as payment in lieu of compensation to which a Participant is otherwise entitled and in such event, such Other Stock Unit Awards may vest prior to the one year anniversary of grant date. Subject to the vesting limitations
and exceptions applicable to Restricted Stock Awards under Section 8(c), other Stock Unit Awards may be paid in shares of Common Stock or cash, as the Committee shall determine. Subject to the provisions of the Plan, the Committee shall determine
the conditions of each Other Stock Unit Award, including any purchase price applicable thereto. 
  

	10.	 	Adjustments for Changes in Common Stock and Certain Other Events. 

  
 (a) Changes in Capitalization. In the event of any stock split, reverse stock split, stock dividend, recapitalization, combination of shares,
reclassification of shares, spin-off or other similar change in capitalization or event, or any distribution to holders of Common Stock other than an ordinary cash dividend, (i) the number and class of securities available under this Plan,
(ii) the sub-limits set forth in Section 4(b), (iii) the number and class of securities and exercise price per share of each outstanding Option and each Option issuable under Section 6, (iv) the share- and per-share
provisions of each Stock Appreciation Right, (v) the repurchase price per share subject to each outstanding Restricted Stock Award and (vi) the share- and per-share-related provisions of each outstanding Other Stock Unit Award, shall be
appropriately adjusted by the Company (or substituted Awards may be made, if applicable) to the extent determined by the Committee. 
  
 (b) Reorganization Events. 
  
 (1) Definition. A “Reorganization Event” shall mean: (a) any merger or consolidation of the Company with or into
another entity as a result of which all of the Common Stock of the Company is converted into or exchanged for the right to receive cash, securities or other property or is cancelled, (b) any exchange of all of the Common Stock of the Company
for cash, securities or other property pursuant to a share exchange transaction or (c) any liquidation or dissolution of the Company. 
  
 (2) Consequences of a Reorganization Event on Awards Other than Restricted Stock Awards. In connection with a Reorganization Event,
the Committee shall take any one or more of the following actions as to all or any outstanding Awards on such terms as the Committee determines: (i) provide that Awards shall be assumed, or substantially equivalent Awards shall be substituted,
by the acquiring or succeeding corporation (or an affiliate thereof), (ii) upon written notice to a Participant, provide that the Participant’s unexercised Options or other unexercised Awards shall become exercisable in full and will
terminate immediately prior to the consummation of such Reorganization Event unless exercised by the Participant within a specified period following the date of such notice, (iii) provide that outstanding Awards shall become realizable or
deliverable, or restrictions applicable to an Award shall lapse, in whole or in part prior to or upon such Reorganization Event, (iv) in the event of a Reorganization Event under the terms of which holders of Common Stock will receive upon
consummation thereof a cash payment for each share surrendered in the Reorganization Event (the “Acquisition Price”), make or provide for a cash payment to a Participant equal to (A) the Acquisition Price times the number of shares of
Common Stock subject to the Participant’s Options or other Awards (to the extent the exercise price does not exceed the Acquisition Price) minus (B) the aggregate exercise price of all such outstanding Options or other Awards, in exchange
for the termination of such Options or other Awards, (v) provide that, in connection with a liquidation or dissolution of the Company, Awards shall convert into the right to receive liquidation proceeds (if applicable, net of the exercise price
thereof) and (vi) any combination of the foregoing. 

 For purposes of clause (i) above, an Option shall be considered assumed if, following consummation
of the Reorganization Event, the Option confers the right to purchase, for each share of Common Stock subject to the Option immediately prior to the consummation of the Reorganization Event, the consideration (whether cash, securities or other
property) received as a result of the Reorganization Event by holders of Common Stock for each share of Common Stock held immediately prior to the consummation of the Reorganization Event (and if holders were offered a choice of consideration, the
type of consideration chosen by the holders of a majority of the outstanding shares of Common Stock); provided, however, that if the consideration received as a result of the Reorganization Event is not solely common stock of the acquiring or
succeeding corporation (or an affiliate thereof), the Company may, with the consent of the acquiring or succeeding corporation, provide for the consideration to be received upon the exercise of Options to consist solely of common stock of the
acquiring or succeeding corporation (or an affiliate thereof) equivalent in value (as determined by the Committee) to the per share consideration received by holders of outstanding shares of Common Stock as a result of the Reorganization Event.

  
 To the extent all or any portion of an Option becomes
exercisable solely as a result of clause (ii) above, the Committee may provide that upon exercise of such Option the Participant shall receive shares subject to a right of repurchase by the Company or its successor at the Option exercise price;
such repurchase right (x) shall lapse at the same rate as the Option would have become exercisable under its terms and (y) shall not apply to any shares subject to the Option that were exercisable under its terms without regard to clause
(ii) above. 
  
 (3) Consequences of a
Reorganization Event on Restricted Stock Awards. Upon the occurrence of a Reorganization Event other than a liquidation or dissolution of the Company, the repurchase and other rights of the Company under each outstanding Restricted Stock Award
shall inure to the benefit of the Company’s successor and shall apply to the cash, securities or other property which the Common Stock was converted into or exchanged for pursuant to such Reorganization Event in the same manner and to the same
extent as they applied to the Common Stock subject to such Restricted Stock Award. Upon the occurrence of a Reorganization Event involving the liquidation or dissolution of the Company, except to the extent specifically provided to the contrary in
the instrument evidencing any Restricted Stock Award or any other agreement between a Participant and the Company, all restrictions and conditions on all Restricted Stock Awards then outstanding shall automatically be deemed terminated or satisfied.

  

	11.	 	General Provisions Applicable to Awards 

  
 (a) Transferability of Awards. Awards shall not be sold, assigned, transferred, pledged or otherwise encumbered by the person to whom they are
granted, either voluntarily or by operation of law, except by will or the laws of descent and distribution or, other than in the case of an Incentive Stock Option, pursuant to a qualified domestic relations order, and, during the life of the
Participant, shall be exercisable only by the Participant; provided, however, that the Committee may permit or provide in an Award for the gratuitous transfer of the Award by the Participant to or for the benefit of any immediate family member,
family trust or family partnership established solely for the benefit of the Participant and/or an immediate family member thereof if, with respect to such proposed transferee, the Company would be eligible to use a Form S-8 for the registration of
the sale of the Common Stock subject to such Award under the Securities Act of 1933, as amended; provided, further, that the Company shall not be required to recognize any such transfer until such time as the Participant and such permitted
transferee shall, as a condition to such transfer, deliver to the Company a written instrument in form and substance satisfactory to the Company confirming that such transferee shall be bound by all of the terms and conditions of the Award.
References to a Participant, to the extent relevant in the context, shall include references to authorized transferees. 

 (b) Documentation. Each Award shall be evidenced in such form (written, electronic or otherwise)
as the Committee shall determine. Each Award may contain terms and conditions in addition to those set forth in the Plan. 
  
 (c) Committee Discretion. Except as otherwise provided by the Plan, each Award may be made alone or in addition or in relation to any other Award.
The terms of each Award need not be identical, and the Committee need not treat Participants uniformly. 
  
 (d) Termination of Status. The Committee shall determine the effect on an Award of the disability, death, retirement, authorized leave of absence
or other change in the employment or other status of a Participant and the extent to which, and the period during which, the Participant, or the Participant’s legal representative, conservator, guardian or Designated Beneficiary, may exercise
rights under the Award. 
  
 (e) Withholding. Each
Participant shall pay to the Company, or make provision satisfactory to the Company for payment of, any taxes required by law to be withheld in connection with an Award to such Participant. Except as the Committee may otherwise provide in an Award,
for so long as the Common Stock is registered under the Exchange Act, Participants may satisfy such tax obligations in whole or in part by delivery of shares of Common Stock, including shares retained from the Award creating the tax obligation,
valued at their Fair Market Value; provided, however, except as otherwise provided by the Committee, that the total tax withholding where stock is being used to satisfy such tax obligations cannot exceed the Company’s minimum statutory
withholding obligations (based on minimum statutory withholding rates for federal and state tax purposes, including payroll taxes, that are applicable to such supplemental taxable income). Shares surrendered to satisfy tax withholding requirements
cannot be subject to any repurchase, forfeiture, unfulfilled vesting or other similar requirements. The Company may, to the extent permitted by law, deduct any such tax obligations from any payment of any kind otherwise due to a Participant.

  
 (f) Amendment of Award. The Committee may amend, modify
or terminate any outstanding Award, including but not limited to, substituting therefor another Award of the same or a different type, changing the date of exercise or realization, and converting an Incentive Stock Option to a Nonstatutory Stock
Option, provided that the Participant’s consent to such action shall be required unless the Committee determines that the action, taking into account any related action, would not materially and adversely affect the Participant. 
  
 (g) Conditions on Delivery of Stock. The Company will not be obligated
to deliver any shares of Common Stock pursuant to the Plan or to remove restrictions from shares previously delivered under the Plan until (i) all conditions of the Award have been met or removed to the satisfaction of the Company, (ii) in
the opinion of the Company’s counsel, all other legal matters in connection with the issuance and delivery of such shares have been satisfied, including any applicable securities laws and any applicable stock exchange or stock market rules and
regulations, and (iii) the Participant has executed and delivered to the Company such representations or agreements as the Company may consider appropriate to satisfy the requirements of any applicable laws, rules or regulations. 
  
 (h) Acceleration. Except as otherwise provided in Sections 5, 8 or 9,
the Committee may at any time provide that any Award shall become immediately exercisable in full or in part, free of some or all restrictions or conditions, or otherwise realizable in full or in part, as the case may be. 
  
 (i) Performance Conditions. 
  
 (1) This Section 11(i) shall be administered by a
Committee approved by the Committee, all of the members of which are “outside directors” as defined by Section 162(m) (the “Section 162(m) Committee”). 

 (2) Notwithstanding any other provision of the Plan, if the Section 162(m) Committee
determines, at the time a Restricted Stock Award or Other Stock Unit Award is granted to a Participant, that such Participant is, or may be as of the end of the tax year in which the Company would claim a tax deduction in connection with such Award,
a Covered Employee (as defined in Section 162(m)), then the Section 162(m) Committee may provide that this Section 11(i) is applicable to such Award. 
  
 (3) If a Restricted Stock Award or Other Stock Unit Award is subject to this Section 11(i), then the
lapsing of restrictions thereon and the distribution of cash or Shares pursuant thereto, as applicable, shall be subject to the achievement of one or more objective performance goals established by the Section 162(m) Committee, which shall be
based on the relative or absolute attainment of specified levels of one or any combination of the following: (a) earnings per share, (b) return on average equity with respect to a pre-determined peer group, (c) earnings,
(d) earnings growth, (e) revenues, (f) expenses, (g) stock price, (h) achievement of post-acquisition cost reductions and operating synergies, (i) regulatory compliance, (j) improvement of financial ratings,
(k) achievement of balance sheet objectives, (l) total shareholder return, and may be absolute in their terms or measured against or in relationship to other companies comparably, similarly or otherwise situated. Such performance goals may
be adjusted to exclude any one or more of (i) extraordinary items, (ii) gains or losses on the dispositions of discontinued operations, (iii) the cumulative effects of changes in accounting principles, (iv) the writedown of any
asset, (v) charges for restructuring and rationalization programs and (vi) fluctuations in foreign currency exchange rates. Such performance goals: (i) may vary by Participant and may be different for different Awards; (ii) may
be particular to a Participant or the department, branch, line of business, subsidiary or other unit in which the Participant works and may cover such period as may be specified by the Section 162(m) Committee; and (iii) shall be set by
the Section 162(m) Committee within the time period prescribed by, and shall otherwise comply with the requirements of, Section 162(m). 
  
 (4) Notwithstanding any provision of the Plan, with respect to any Restricted Stock Award or Other Stock Unit Award that is subject to
this Section 11(i), the Section 162(m) Committee may adjust downwards, but not upwards, the cash or number of Shares payable pursuant to such Award, and the Section 162(m) Committee may not waive the achievement of the applicable
performance goals except in the case of the death or disability of the Participant. 
  
 (5) The Section 162(m) Committee shall have the power to impose such other restrictions on Awards subject to this Section 11(i)
as it may deem necessary or appropriate to ensure that such Awards satisfy all requirements for “performance-based compensation” within the meaning of Section 162(m)(4)(C) of the Code, or any successor provision thereto. 

 

	12.	 	Miscellaneous 

  
 (a) No Right To Employment or Other Status. No person shall have any claim or right to be granted an Award, and the grant of an Award shall not be
construed as giving a Participant the right to continued employment or any other relationship with the Company. The Company expressly reserves the right at any time to dismiss or otherwise terminate its relationship with a Participant free from any
liability or claim under the Plan, except as expressly provided in the applicable Award. 
  
 (b) No Rights As Stockholder. Subject to the provisions of the applicable Award, no Participant or Designated Beneficiary shall have any rights as a stockholder with respect to any shares of Common Stock to be
distributed with respect to an Award until becoming the record holder of such shares. Notwithstanding the foregoing, in the event the Company effects a split of the Common Stock by means of a stock dividend and the 

 
exercise price of and the number of shares subject to such Option are adjusted as of the date of the distribution of the dividend (rather than as of the
record date for such dividend), then an optionee who exercises an Option between the record date and the distribution date for such stock dividend shall be entitled to receive, on the distribution date, the stock dividend with respect to the shares
of Common Stock acquired upon such Option exercise, notwithstanding the fact that such shares were not outstanding as of the close of business on the record date for such stock dividend. 
  
 (c) Effective Date and Term of Plan. The Plan shall become effective on the date on which it is adopted by the
Committee, but no Award may be granted unless and until the Plan has been approved by the Company’s stockholders. No Awards shall be granted under the Plan after the completion of 10 years from the earlier of (i) the date on which the Plan
was adopted by the Committee or (ii) the date the Plan was approved by the Company’s stockholders, but Awards previously granted may extend beyond that date. 
  
 (d) Amendment of Plan. The Committee may amend, suspend or terminate the Plan or any portion thereof at any time;
provided that (i) to the extent required by Section 162(m), no Award granted to a Participant that is intended to comply with Section 162(m) after the date of such amendment shall become exercisable, realizable or vested, as
applicable to such Award, unless and until such amendment shall have been approved by the Company’s stockholders if required by Section 162(m) (including the vote required under Section 162(m)); (ii) no amendment that would
require stockholder approval under the rules of the NASDAQ may be made effective unless and until such amendment shall have been approved by the Company’s stockholders; and (iii) if the NASDAQ amends its corporate governance rules so that
such rules no longer require stockholder approval of “material revisions” to equity compensation plans, then, from and after the effective date of such amendment to the NASDAQ rules, no amendment to the Plan (A) materially increasing
the number of shares authorized under the Plan (other than pursuant to Section 10), (B) expanding the types of Awards that may be granted under the Plan, or (C) materially expanding the class of participants eligible to participate in
the Plan shall be effective unless stockholder approval is obtained. In addition, if at any time the approval of the Company’s stockholders is required as to any other modification or amendment under Section 422 of the Code or any
successor provision with respect to Incentive Stock Options, the Committee may not effect such modification or amendment without such approval. 
  
 (e) Provisions for Foreign Participants. The Committee may modify Awards or Options granted to Participants who are foreign nationals or employed
outside the United States or establish subplans or procedures under the Plan to recognize differences in laws, rules, regulations or customs of such foreign jurisdictions with respect to tax, securities, currency, employee benefit or other matters.

  
 (f) Compliance With Code Section 409A. No Award
shall provide for deferral of compensation that does not comply with Section 409A of the Code, unless the Committee, at the time of grant, specifically provides that the Award is not intended to comply with Section 409A of the Code.

  
 (g) Governing Law. The provisions of the Plan and all
Awards made hereunder shall be governed by and interpreted in accordance with the laws of the State of Delaware, excluding choice-of-law principles of the law of such state that would require the application of the laws of a jurisdiction other than
such state.

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