Document:

Warrant

 Exhibit 4.8 
 THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND MAY NOT BE SOLD OR OFFERED FOR SALE UNLESS REGISTERED OR QUALIFIED UNDER SAID ACT AND ANY APPLICABLE
STATE SECURITIES LAWS OR UNLESS THE COMPANY RECEIVES AN OPINION IN REASONABLY ACCEPTABLE FORM AND SCOPE TO THE COMPANY OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT REGISTRATION, QUALIFICATION OR OTHER SUCH ACTIONS ARE NOT REQUIRED UNDER
ANY SUCH LAWS OR THAT AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE. THE OFFERING OF THIS WARRANT HAS NOT BEEN REVIEWED OR APPROVED BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION, OR BY ANY STATE’S SECURITIES ADMINISTRATOR. THIS
WARRANT IS ALSO SUBJECT TO CERTAIN ADDITIONAL TRANSFER RESTRICTIONS PROVIDED FOR HEREIN. 
  

			
	 Warrant No.         
	  	Dated: As of July 5, 2006

 WARRANT 
 (A) THIS IS TO CERTIFY THAT, for value received, BHC INTERIM FUNDING II, L.P., a Delaware limited partnership, or its registered assigns (the “Holder”), is entitled to purchase from Akrion, Inc., a
Delaware corporation (the “Company”), at any time on or after the date hereof and before 5:00 p.m. (New York time) on July 5, 2011, Two Hundred Thousand Five Hundred Nineteen (200,519) shares of the Company’s common
stock, $.01 par value per share (the “Common Stock”), as shall be adjusted as set forth in Section (D) below and Section 4.2 hereof (collectively, the “Aggregate Shares”), at a price (the
“Exercise Price”) equal to $7.10 per share (subject to adjustment as set forth in Section 4.2 hereof) payable as provided below. The shares of Common Stock issuable upon exercise of this Warrant shall be the
Company’s Common Stock and are herein called the “Warrant Shares.” 
 (B) This Warrant is the Warrant referred to in
the Loan and Security Agreement (as hereinafter defined) and is issued pursuant to, and entitled to the benefits of, the Loan and Security Agreement, as amended from time to time. Capitalized terms used and not otherwise defined in this Warrant
shall have the meanings assigned to them in the Loan and Security Agreement. 
 (C) Certain terms used in this Warrant are defined in Article
VII. 
 (D) The number of Aggregate Shares that the Holder will be entitled to purchase under this Warrant shall be adjusted as follows:

 (i) (a) In the event that the Holder funds the Second Tranche, the Aggregate Shares shall be increased to include an additional Forty
Thousand One Hundred Four (40,104) shares of Common Stock; and (b) in the event that the Holder funds the Third Tranche, the Aggregate Shares shall be increased to include an additional Twenty-Six Thousand Seven Hundred Thirty-Six
(26,736) shares of Common Stock. 
 (ii) If the Loan is not paid in full within fifteen (15) days after the Maturity Date,
(a) the Aggregate Shares shall be increased to include an additional number of shares of 

 
Common Stock equal to the product of the number of Aggregate Shares as of the Maturity Date multiplied by 5% (five percent), and (b) the Aggregate
Shares shall continue to be increased by an amount equal to the Aggregate Shares as of the Maturity Date multiplied by 1% (one percent) for each month or part thereof, commencing on the day after the Maturity Date, which passes without payment in
full of the Loan. 
 ARTICLE I- EXERCISE OF WARRANT 
 1.1 Method of Exercise. To exercise this Warrant in whole or in part, the Holder shall deliver on any Business Day to the Company at its principal place of business (a) this Warrant, (b) a written
notice in substantially the form of the Subscription Notice attached hereto, of the Holder’s election to exercise this Warrant, which notice shall specify the number of Warrant Shares to be purchased (which shall be a whole number of shares if
for less than all the Warrant Shares then issuable hereunder), and (c) payment of the Exercise Price with respect to such Warrant Shares. Such payment may be made, at the option of the Holder, either (a) by cash, certified or bank
cashier’s check or wire transfer in an amount equal to the product of (i) the Exercise Price times (ii) the number of Warrant Shares as to which this Warrant is being exercised or (b) by a “cashless exercise” of this
Warrant, in which event the Holder shall receive from the Company the number of Warrant Shares computed using the following formula: 
  

					
	 Y
	 	=	 	X (A - B)
		 		 	    A

 where: 
 A= the current Fair Market Value of a share of Common Stock on the Business Day immediately prior to the date of such exercise; 
 B= the Exercise Price; 
 X= the number of Warrant Shares as to which this Warrant is being exercised; and

 Y= the number of Warrant Shares to be issued to the Holder. 
 The Company shall, as promptly as practicable and in any event within seven (7) days after receipt of such notice and payment, execute and deliver or cause to be executed and delivered, in accordance with such
notice, a certificate or certificates representing the Warrant Shares so acquired. The certificate or certificates so delivered shall be in such denominations as may be specified in such notice, and shall be issued in the name of the Holder or such
other name or names as shall be designated in such notice. This Warrant shall be deemed to have been exercised and such certificate or certificates shall be deemed to have been issued, and such HoIder or any other Person so designated to be named
therein shall be deemed for all purposes to have become a holder of record of Warrant Shares, as of the date the aforementioned notice and payment is received by the Company. If this Warrant shall have been exercised only in part, the Company shall,
at the time of delivery of such certificate or certificates, deliver to the Holder a new Warrant evidencing the right to purchase the remaining shares of Common Stock issuable under this Warrant, which new Warrant shall, in all other respects, be
identical to this Warrant. The Company shall pay all expenses, stamp, documentary and similar taxes and other charges payable in connection with the preparation, issuance and delivery of share certificates and new Warrant under this provision.

  

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 1.2 Warrant Shares to Be Fully Paid And Nonassessable. All Warrant Shares issued upon the exercise
of this Warrant shall be validly issued, fully paid and nonassessable, free of any restriction of any kind, except as set forth in this Warrant. 
 1.3 Legend. Each certificate for Warrant Shares issued upon exercise of this Warrant, shall, unless at the time of exercise such shares are registered under the Securities Act, bear a legend substantially in the following form:

 “This security has not been registered under the Securities Act of 1933 and may not be sold or offered for sale unless registered or
qualified under said Act and any applicable state securities laws or unless the Company receives an opinion in reasonably acceptable form and scope to the Company of counsel reasonably satisfactory to the Company that registration, qualification or
other such actions are not required under any such laws or that an exemption from such registration is available. The offering of this security has not been reviewed or approved by the United States Securities and Exchange Commission or by any
state’s securities administrator. This security is also subject to certain additional transfer restrictions provided for in the Warrant the exercise of which resulted in the original issuance of this security, a copy of which restrictions shall
be furnished to the holder hereof by the Company upon written request and without charge.” 
 Any certificate issued at any time in
exchange or substitution for any certificate bearing such legend (except a new certificate issued upon completion of a public offering pursuant to a registration statement under the Securities Act with respect to the shares represented by such
certificate) shall also bear such legend unless, in the opinion of legal counsel selected by the Holder of such certificate (who may be an employee of such Holder) and reasonably acceptable to the Company, the securities represented thereby need no
longer be subject to restrictions on resale under the Securities Act. 
 1.4 Authorization; Capitalization. The Company has duly
reserved, and will keep available for issuance upon exercise of this Warrant, the total number of Warrant Share deliverable from time to time upon exercise of this Warrant in its entirety. In the event that adjustments contained in Section
(D) of this Warrant result in any adjustment of the number of shares of Common Stock issuable upon the exercise of this Warrant causing (i) the total number shares of Common Stock issuable after such action upon exercise of this
Warrant, plus (ii) all shares of Common Stock issued and outstanding, plus (iii) all shares of Common Stock then issuable (y) upon the exercise of all outstanding options and (z) upon the exercise, conversion or exchange of all
other outstanding securities which are exercisable for, convertible into or exchangeable for Common Stock, (the “Fully-Diluted Shares”), to exceed the total number of shares Common Stock then authorized for issuance by the Company,
the Company shall promptly take all corporate action necessary to authorize and reserve a sufficient number of shares Common Stock to cover the exercise of all of this Warrant in full, including, without limitation, obtaining the necessary approvals
of the Board of Directors and, if required, stockholders of the Company and, if required, filing the appropriate amendments to the 

  

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Company’s certificate of incorporation. Other than the actions described in Section (D) and Section 4.2 hereof this Warrant, the
Company will not take any actions during the term of this Warrant that would result in any adjustment of the number of shares of Common Stock issuable upon exercise of this Warrant if the Fully-Diluted Shares would exceed the total number of shares
of Common Stock then authorized for issuance by the Company. The issuance of the Warrant Shares has been duly and validly authorized and, when issued and sold in accordance with this Warrant, the Warrant Shares will be duly and validly issued, fully
paid and nonassessable. As of the date of issuance of this Warrant (the “Issuance Date”), except as set forth on Schedule 1.4, the Company has issued and there are outstanding (i) no shares of Common Stock, (ii) no
shares of preferred stock, no options or warrants to acquire any shares of capital stock of the Company, and (iii) no other shares of capital stock of the Company or any securities exercisable for, convertible into or exchangeable for shares of
capital stock of the Company or any rights, options or warrants to purchase any shares of capital stock of the Company or any securities exercisable for, convertible into or exchangeable for shares of capital stock of the Company. Neither the
issuance of this Warrant nor the issuance of the Warrant Shares upon exercise of this Warrant violates or conflicts or will violate or conflict with the Company’s Certificate of Incorporation or By Laws or any agreement to which the Company is
a party or any Federal or State law. 
 1.5 No Rights as Stockholder Until Exercise. No Holder of any Warrant shall be entitled to
vote or receive dividends or shall be deemed for any other purpose the holder of the shares of Common Stock or other securities which may at any time be issuable upon the exercise of such Warrant. Nothing contained herein or in any Warrant
certificate shall be construed to confer upon the Holder of any Warrant, as such, any of the rights of a stockholder of the Company, including any right to vote for the election of directors or upon any other matter submitted to stockholders of the
Company at any meeting thereof, to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders, except as otherwise expressly provided herein or therein or until such Warrant has been
exercised in accordance with the provisions hereof and thereof. 
 ARTICLE II - TRANSFER, EXCHANGE AND REPLACEMENT OF WARRANTS

 2.1 Ownership of Warrant. The Company shall deem and treat the Person in whose name this Warrant is registered as the holder and
owner hereof (notwithstanding any notations of ownership or writing hereon made by any Person other than the Company) for all purposes and shall not be affected by any notice to the contrary, until due presentment of this Warrant for registration of
transfer as provided in this Article II. 
 2.2 Transfer of Warrant. The Company agrees to maintain at its principal office the books
for the registration of transfers of the Warrant, and transfer of this Warrant and all rights hereunder shall be registered, in whole or in part, on such books, upon surrender of this Warrant at the Company, together with (i) a written
assignment of this Warrant duly executed by the Holder or its duly authorized agent or attorney, with (if the Holder is a natural Person) signatures guaranteed by a bank or trust company or a broker or dealer registered with the NASD;
provided, however, that (a) Holder may not assign all or any part of this Warrant or the Warrant Shares to a competitor of the Company, and (b) so long as no Event of Default exists, Holder may not assign all or any part of
this Warrant or the Warrant Shares to any Person other than an Affiliate of 

  

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Holder without the Company’s prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed, (ii) funds sufficient
to pay any transfer taxes payable upon such transfer, and (iii) an Investment Representation Letter as described in Section 2.4 hereof executed by the proposed transferee. Upon surrender and, if required, such payment, the Company
shall promptly execute and deliver a new Warrant or Warrants in the name of the assignee or assignees and in the denominations specified in the instrument of assignment and shall issue to the assignor a new Warrant or Warrants evidencing the portion
of this Warrant not so assigned, and this Warrant shall promptly be canceled. The Company shall permit the Holder to inspect the warrant registration books from time to time during normal business hours at the Company. Holder shall pay all fees
(including reasonable attorney’s fees), costs and expenses associated with any transfer of this Warrant requested by Holder. 
 2.3
Division or Combination of Warrant. This Warrant may be divided or combined with other Warrants upon presentment to the Company of this Warrant and of any Warrant or Warrant with which this Warrant is to be combined, together with a written
notice specifying the names and denominations in which the new Warrant or Warrants are to be issued, signed by the holders hereof and thereof or their respective duly authorized agents or attorneys. Subject to compliance with Section 2.2
as to any transfer or assignment which may be involved in the division or combination, the Company shall promptly execute and deliver a new Warrant or Warrant in exchange for the Warrant or Warrant to be divided or combined in accordance with such
notice. 
 2.4 Expenses of Delivery of Warrant. The Company shall pay all reasonable expenses, stamp, documentary and similar taxes
(other than transfer taxes) and other charges payable in connection with the preparation, issuance and delivery of the Warrant. 
 2.5
Representations of Holder. On the date hereof, the Holder shall sign an Investment Representation Letter substantially in the form of Exhibit A attached hereto, as the same may be amended from time to time to correspond to the definition of
“accredited investor” under Regulation D promulgated under the Securities Act (an “Investment Representation Letter”). The Company shall not be required to transfer the Warrant in whole or in part to any Person who does
not execute an Investment Representation Letter. 
 ARTICLE III - CERTAIN RIGHTS 
 3.1 Determination of Fair Market Value. Subject to Section 3.2 hereof, each determination of Fair Market Value shall be made by the Company
in accordance with the definition of the term Fair Market Value set forth in Article VII hereof. Upon each determination of Fair Market Value, the Company shall promptly give written notice thereof to all Holders, setting forth in reasonable detail
(i) the transaction giving rise to the necessity for such determination, (ii) the calculation of such Fair Market Value and (iii) the method and basis of determination thereof (the “Company Determination”). In the
event Fair Market Value is determined with reference to subsection (i)(C) or (ii) of the definition of Fair Market Value, the Company’s Board of Directors shall make such initial determination within fifteen (15) days of the event
giving rise to the necessity for such determination. 
  

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 3.2 Contest and Appraisal Rights. 
 (a) If a Holder owning a majority in interest of the Warrant and/or Warrant Shares (collectively, an “Objecting Holder”) disagrees with
the Company Determination and by notice to the Company given within twenty (20) days after receipt of notice of the Company Determination (an “Appraisal Notice”) elects to dispute the Company Determination, such dispute shall
be resolved as set forth in subsection (b) of this Section 3.2. 
 (b) For a period of ten (10) days after the
Appraisal Notice, the Company and the representative of Objecting Holder (“Representative”) shall negotiate in good faith to resolve their differences as to the determination of Fair Market Value. In the absence of a mutually
satisfactory resolution within such ten (10)-day period, the Company shall within ten (10) days after the last day of such ten (10)-day period engage an investment bank or other qualified appraisal firm reasonably acceptable to the
Representative (the “Appraiser”) to make an independent determination of Fair Market Value (the “Appraiser Determination”). The Appraiser Determination shall be made within sixty (60) days of the engagement of
such Appraiser, shall be evidenced in a written report addressed to the Company and the Objecting Holder, and shall be final and binding on the Company and the Objecting Holder. The costs of the Appraiser Determination shall be borne (i) solely
by the Company if the difference between the Appraiser Determination and the Company Determination is greater than 17.5%, (ii) solely by the Objecting Holder if the difference between the Appraiser Determination and the Company Determination is
less than 17.5% and (iii) equally by the Company and the Objecting Holder if the difference between the Appraiser Determination and the Company Determination is equal to 17.5%. 
 3.3 Financial Statements and Other Information. Promptly upon transmission thereof, the Company will deliver to each Holder copies of any and all
financial statements, proxy statements, notices and other reports as it may send to its shareholders and copies of all registration statements and all reports which it files with the Commission (or any governmental body or agency succeeding to its
functions). 
 ARTICLE IV - REORGANIZATION, RECLASSIFICATION, LIQUIDATION AND 
 ANTI-DILUTION 
 4.1 Reorganization, Reclassification and Liquidation.

 (a) In the case of any reorganization or reclassification of the Common Stock or in the case of any consolidation of the Company with, or
merger of the Company with, another company or corporation, or in the case of any sale, lease or conveyance of all, or substantially all, of the property, assets, business and goodwill of the Company as an entity, or on the occurrence of a Change of
Control, the holder of this Warrant shall thereafter have the right upon exercise to purchase the kind and amount of shares of stock and Other Securities and property receivable upon such reorganization, reclassification, consolidation, merger or
sale by a holder of the number of shares of Common Stock which the holder of this Warrant would have received had all Warrant Shares issuable upon exercise of this Warrant been issued immediately prior to such reorganization, reclassification,
consolidation, merger or sale, at a price equal to the Exercise Price then in effect pertaining to this Warrant (the kind, amount and price of such stock and Other Securities to be subject to adjustment as herein provided). 
  

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 (b) In the event that the Company shall, at any time prior to the expiration of this Warrant and prior to
the exercise thereof, dissolve, liquidate or wind up its affairs, the Company shall give the Holder written notice of such dissolution, liquidation or winding up at least twenty (20) Business Days prior thereto. If the Company does not provide
such notice at least twenty (20) Business Days prior to such dissolution, liquidation or winding up, the Holder shall be entitled, upon the exercise thereof, to receive, in lieu of the Warrant Shares which it would have been entitled to
receive, the same kind and amount of assets as would have been issued, distributed or paid to it upon such Warrant Shares, had it been the holder of record of the shares of Common Stock receivable upon the exercise of this Warrant on the record date
for the determination of those entitled to receive any such liquidating distribution. After any such dissolution, liquidation or winding up which shall result in any distribution in excess of the Exercise Price provided for by this Warrant, the
Holder may at its option exercise the same without making payment of the aggregate Exercise Price and in such case the Company shall upon the distribution to said Holder consider that the aggregate Exercise Price has been paid in full to it and in
making settlement to said Holder, shall deduct from the amount payable to such Holder an amount equal to the aggregate Exercise Price. 
 (c)
In the event that the Company shall, at any time prior to the expiration of this Warrant and prior to the exercise thereof, make a distribution of assets (other than cash) or securities of the Company to its stockholders (the
“Distribution”), the Company shall give the Holder written notice of such Distribution at least twenty (20) Business Days prior thereto. If the Company does not provide such notice at least twenty (20) Business Days prior
to such Distribution, the Holder shall be entitled, upon the exercise thereof, to receive, in addition to the Warrant Shares it is entitled to receive, the same kind and amount of assets or securities as would have been distributed to it in the
Distribution had it been the holder of record of the shares of Common Stock receivable upon exercise of this Warrant on the record date for determination of those entitled to receive the Distribution. 
 4.2 Adjustments. In order to prevent dilution of the rights granted under this Warrant, the Exercise Price hereunder shall be subject to
adjustment from time to time as follows: 
 (a) Adjustment of Exercise Price Upon Issuance of Common Stock or Common Stock Equivalents.
If and whenever the Company issues or sells, or in accordance with Paragraph 4.2(b) below is deemed to have issued or sold, any Common Stock for a consideration per share less than the Exercise Price then in effect at the time of such issue
or sale then forthwith upon such issue or sale, the Exercise Price will be decreased to a price equal to the least consideration per share received by the Company for such additional shares and the number of Warrant Shares shall remain the same.

 (b) Effect on Subject Shares of Certain Events. For purposes of determining, the adjusted Exercise Price under paragraph
(a) above, the following will be applicable: 
 (i) Issuance of Common Stock Equivalents. If the Company in any manner grants any
Common Stock Equivalent and the lowest price per share for which any one 

  

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share of Common Stock of the Company is issuable upon the exercise of any such Common Stock Equivalent is less than the Exercise Price then in effect, at the
time of the granting of such Common Stock Equivalent, then such shares of Common Stock will be deemed to have been issued and sold by the Company for such price per share (other than pursuant to antidilutive adjustments to the Warrants). For
purposes of this paragraph, the “lowest price per share for which any one share is issuable” will be equal to the sum of the lowest amounts of consideration (if any) received or receivable by the Company with respect to any one share upon
the exercise of the Common Stock Equivalent (whether by conversion, exchange or otherwise) or other similar indication of the price per share as of the time of granting (such as the floor value for stock appreciation rights). No further adjustment
of the Exercise Price will be made upon the actual issue of such shares of Common Stock or upon the exercise of any right under the Common Stock Equivalents. 
 (ii) Change in Option Price or Conversion Rate. If the purchase price provided for in any Common Stock Equivalent, the additional consideration, if any, payable upon the issue, conversion or exchange of any
Common Stock Equivalent, or the rate at which any Common Stock Equivalent is convertible into or exchangeable for shares of Common Stock changes at any time, the Exercise Price in effect at the time of such change will be readjusted to the Exercise
Price which would have been in effect at such time had such Common Stock Equivalent still outstanding provided for such changed purchase price, additional consideration or changed conversation rate, as the case may, be, at the time initially
granted, issued or sold. 
 (iii) Treatment of Expired and Unexercised Common Stock Equivalents. Upon the expiration of any Common
Stock Equivalent or the termination of any right to convert or exchange any Common Stock Equivalent without the exercise of such Common Stock Equivalent, the Exercise Price then in effect will be adjusted to the Exercise Price which would have been
in effect at the time of such expiration or termination had such Common Stock Equivalent, to the extent outstanding immediately prior to such expiration or termination, never been issued. 
 (iv) Calculation of Consideration Received. If any Common Stock or Common Stock Equivalents are issued or sold or deemed to have been issued or
sold for cash, the consideration received therefor will be deemed to be the net amount received by the Company. In case any Common Stock or Common Stock Equivalents are issued or sold for a consideration other than cash, the amount of the
consideration other than cash received by the Company will be the Fair Market Value of such consideration. In case any Common Stock or Common Stock Equivalents are issued to the owners of the non-surviving entity in connection with any merger in
which the Company is the surviving entity, the amount of consideration therefor will be deemed to be the Fair Market Value of such portion of the net assets and business of the non-surviving entity as is attributable to such Common Stock or Common
Stock Equivalents, as the case may be. 
 (v) Integrated Transactions. In case any Common Stock Equivalent (other than Permitted
Stock) is issued in connection with the issue or sale of other securities of the Company, together comprising one integrated transaction in which no specific consideration is allocated to such Common Stock Equivalent by the parties thereto, such
Common Stock Equivalent will be deemed to be valued at the Fair Market Value. 
  

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 (vi) Record Date. If the Company takes a record of the holders of Common Stock for the purpose of
entitling them (A) to receive a dividend or other distribution payable in Common Stock or Common Stock Equivalents or (B) to subscribe for or purchase Stock or Common Stock Equivalents, then such record date will be deemed to be the of the
issue or sale of the Common Stock deemed to have been issued or sold upon the of such dividend or the making of such other distribution or the date of the granting of such right of subscription or purchase, as the case may be. 
 (c) Subdivision or Combination of Common Stock. If the Company at any subdivides (by any stock split, stock dividend, recapitalization or
otherwise) one or more classes of its outstanding Common Stock into a greater number of shares of Common Stock, the Exercise Price in effect immediately prior to such subdivision will be proportionately decreased and the number of Warrant Shares for
which this Warrant is exercisable will be proportionately increased. If the Company at any time combines (by reverse stock split or otherwise) one or more classes of its outstanding shares of Common Stock, the Exercise Price in effect immediately
prior to such combination will be proportionately increased and the number of Warrant Shares for which this Warrant is exercisable will be proportionately decreased. 
 (d) Notices. 
 (i) Within five (5) Business Days of any adjustment of the Exercise Price, the
Company will give written notice thereof to the Holder, setting forth in reasonable detail and certifying the calculation of such adjustment. 
 (ii) The Company will give written notice to the Holder at least twenty (20) days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution upon the Common Stock,
(B) with respect to any pro rata subscription offer to holders of Common Stock or (C) for determining rights to vote with respect to any transaction described in Section 4.1 or 4.2 hereof. 
 (e) Certificate of Adjustment. In each case of an adjustment or readjustment of the Exercise Price for the number of shares of Common Stock or
other securities issuable upon exercise of this Warrant, if this Warrant is then exercisable, the Company, at its expense, shall compute such adjustment or readjustment in accordance with the provisions hereof and prepare a certificate showing such
adjustment or readjustment., and shall mail such certificate, by first class mail, postage prepaid, to each the Holder at the Holder’s address as shown in the Company’s books. The certificate shall set forth such adjustment or
readjustment, shown in details the facts upon which such adjustment or readjustment is based, including a statement of (i) the consideration received or deemed to be received by the Company for any additional shares of Common Stock issued or
sold or deemed to have been issued or sold, (ii) the Exercise Price at the time in effect, (iii) the revised Exercise Price, and (iv) the type and amount, if any, of other property which at the time would be received upon exercise of
Warrant. 
  

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 ARTICLE V - REGISTRATION RIGHTS 
 5.1 Piggyback Registration. 
 (a) If
at any time the Company determines to file a registration statement (including pursuant to the request of any security holder of the Company which has the right to require the Company to file such a registration statement) under the Securities Act
of 1933, as amended (the “1933 Act”), to register an offering of shares of Common Stock, it must give to the Holder written notice of such determination at least thirty (30) days prior to each such filing. If, within fifteen
(15) days after receipt of any such notice, the Holder so requests in writing, the Company must include, subject to the provisions of Section 5.1(b), in such registration statement all of the Holder’s Warrant Shares that such
Holder requests to be so included. All such Warrant Shares, together with any other shares of Common Stock the Holder has the right to require the Company to include in any such registration statement, are sometimes referred to herein as the
“Registrable Securities.” 
 (b) Any Registrable Securities of the Holder that are to be included in a registered public
offering pursuant to this Section 5.1 shall be offered and sold upon such terms as the managing underwriters thereof determine; provided, however, that any such terms must be the same as the terms to which any other holder of Registrable
Securities will be bound and must not be substantially different from the terms pursuant to which the Company and any other security holder selling shares of Common Stock in such offering are selling such shares. The managing underwriters may
condition the Holder’s participation in such a registered public offering upon the Holder’s execution of an underwriting agreement containing customary terms and conditions which would customarily be applicable to selling shareholders. If
the managing underwriters for a registered public offering determine that the number of shares of Common Stock proposed to be sold in such offering would adversely affect the marketing of the shares of Common Stock to be sold by the Company therein
or by the person or persons who exercised their right to require the Company to register such offering under the 1933 Act, then the number of shares of Common Stock to be included in such offering shall be reduced in the following order until the
number of such shares does not exceed the number that the managing underwriters believe can be sold without any such adverse effects: 
 (i)
The shares of Common Stock to be included in such offering for the accounts of persons who do not have any contractual registration rights shall be reduced pro rata among such persons based upon the number of shares of Common Stock beneficially
owned by them until the number of shares to be included for such persons is equal to zero. 
 (ii) The Registrable Securities to be included
in such offering for the accounts of persons whose contractual registration rights are inferior in right of priority to the registration rights of the Holder shall be reduced pro rata among such persons based upon the number of Registrable
Securities beneficially owned by them until the number of Registrable Securities to be included for such persons is equal to zero. 
 (iii)
The Registrable Securities to be included in such offering for the accounts of the Holder and other persons who have equivalent contractual registration rights shall be reduced pro rata among such persons based upon the number of Registrable
Securities beneficially owned by them until the number of Registrable Securities to be included for such persons is equal to zero. 
  

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 (iv) The shares of Common Stock to be included in such offering for the accounts of the Company and
other persons who have demand (provided such demand has been exercised) or other contractual registration rights that are superior to those of the Holder shall be reduced as provided in the arrangements among such parties. 
 If the Holder which has elected to participate in a registered public offering determines that it does not approve of the terms of any such offering
prior to the effectiveness of the related registration statement under the 1933 Act, then the Holder may elect to withdraw therefrom by giving written notice of such withdrawal to the Company and the managing underwriters prior to such
effectiveness. 
 (c) All registration rights granted under this Section 5.1 shall terminate and be of no further force or
effect from and after the fifth anniversary of the effective date under the 1933 Act of the registration statement for the Company’s first registered public offering of shares of Common Stock (the “Initial Offering”). A Holder
shall not be entitled to exercise its registration rights under this Section 5.1 at any time that all Registrable Securities beneficially owned by such Holder may be sold pursuant to Rule 144(k) under the 1933 Act. If at any time the
Warrants are exercisable, in whole or in part, for any securities other than shares of Common Stock, then the provisions of this Section 5.1 shall apply equally to the registration of any offering of that class or series of securities.

 (d) Notwithstanding anything to the contrary set forth herein: 
 (i) The provisions of this Section 5.1 shall not apply to any registration statement that is being filed to register the offering of
(A) securities being offered in the Initial Offering, (B) securities to be issued solely in connection with the acquisition of any entity or business, (C) securities issuable solely pursuant to employee benefit plans (including
pursuant to the exercise of stock options), or (D) securities the offering of which is being registered on a registration form that does not permit the registration of the offering of securities for security holders. 
 (ii) The Company may withdraw any registration statement referred to in this Section 5.1 in accordance with the provisions of the 1933 Act
without thereby incurring any liability to the Holder; provided, however, that the Company shall continue to be subject to requirements of this Section 5.1 for any other registration statement. 
 (e) The Company shall, and hereby does, indemnify and hold harmless, to the fullest extent permitted by law, the Holder of Registerable Shares covered
by such registration statement, its directors, officers, partners, managers and each other Person, if any, who controls such Holder, employees, agents, successors and assigns (each an “Indemnified Person”), against any and all
losses, claims, damages or liabilities, joint or several, and expenses (including fees of counsel and any amounts paid in any settlement), to which such Indemnified Persons may become subject under the 1933 Act, common law or otherwise, insofar as
such losses, claims, damages or liabilities (or actions or proceedings, whether commenced or threatened, in respect 

  

 - 11 - 

 
thereof), or expenses arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in any
registration statement under which Registerable Shares were registered under the 1933 Act or the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading, (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary, final, supplemental or summary prospectus, together with the documents
incorporated by reference therein (as amended or supplemented if the Company shall have filed with the Commission any amendment thereof or supplement thereto), or the omission or alleged omission to state therein a material fact required to be
stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, or (iii) any violation by the Company of any federal or state rule or regulation applicable to
the Company and relating to action required of or inaction by the Company in connection with any such registration. The Company will reimburse Indemnified Persons for any reasonable legal or any other expenses reasonably incurred by any of them in
connection with investigating or defending any such loss, claim, damage, liability, action or proceeding. Notwithstanding the foregoing, the Company shall not be liable to any Indemnified Person to the extent that any such loss, claim, damage,
liability (or action or proceeding, whether commenced or threatened, in respect thereof) or expense arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission made in reliance upon and in
conformity with written information furnished to the Company by or on behalf of any such Indemnified Person, for use in the preparation of the registration statement. 
 (f) If the indemnification provided for in Section 5.1(e) above is unavailable to an indemnified party in respect of any expense, loss, damage or liability referred to therein, then each indemnifying
party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such expense, loss, claim, damage or liability (i) in such proportion as is appropriate to reflect
the relative benefits received by the Company on the one hand and the Holder, on the other from the distribution of the Registrable Securities or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in
such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and of the Holder, on the other in connection with the statements or
omissions which resulted in such expense, loss, damage or liability, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Holder, on the other in connection with the
distribution of the Registrable Securities shall be deemed to be in the same proportion as the total net proceeds received by the Company from the initial sale of the Registrable Securities by the Company to the purchaser bear to the gain realized
by the selling Holder. The relative fault of the Company on the one hand and of the Holder, on the other shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or omission to state
a material fact relates to information supplied by the Company or by the Holder and parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission; provided that the foregoing
contribution agreement shall not inure to the benefit of any indemnified party if indemnification would be unavailable to such indemnified party by reason of the proviso contained in the first sentence of Section 5.1(e), and in no event
shall the obligation of any indemnifying party to contribute under this Section 5.1(f) exceed the amount that such indemnifying party would have been obligated to pay by way of indemnification if the indemnification provided for under
Section 5.1(e) had been available under the circumstance. 
  

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 (g) Notwithstanding the provisions of this Section 5.1(g), no holder of Registrable
Securities shall be required to contribute any amount in excess of the amount by which in the case of any such holder, the net proceeds received by such holder from the sale of Registrable Securities exceeds the amount of any damages that such
holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section 1l(f) of the Securities Act) shall be entitled to
contribution from any Person who was not guilty of such fraudulent misrepresentation. 
 (h) The Holder, for so long as the Holder has the
right to exercise its registration rights hereunder, if requested by the Company or an underwriter of securities of the Company, shall agree not to sell or otherwise transfer or dispose of any Registrable Securities held by the Holder for a
specified period of time (not to exceed 180 days) following the effective date of a registration statement with respect to the Company’s securities. Such agreement shall be in writing in a form satisfactory to the Company and such underwriter.
The Company may impose stop transfer instructions with respect to the Registrable Securities subject to the foregoing restriction until the end of the lock-up period. 
 ARTICLE VI - COVENANTS 
 The Company covenants and agrees that, if Lender has not yet exercised all of
its rights under this Warrant, or this Warrant has not expired, the Company shall perform all of the covenants set forth in Sections 5.1 and 5.15 of the Loan and Security Agreement, regardless of whether the Obligations (as defined in
the Loan and Security Agreement) have been paid in full and satisfied thereunder or if the Loan and Security Agreement has been terminated in accordance with its terms or otherwise. 
 ARTICLE VII - DEFINITIONS 
 The following terms, as used in this Warrant, have
the following meanings. Capitalized terms not otherwise defined shall have the same meanings as set forth in the Loan and Security Agreement: 
 “Affiliate” has the meaning set forth in the Loan and Security Agreement. 
 “Aggregate Shares” has
the meaning set forth in paragraph (A) of this Warrant. 
 “Appraisal Notice” has the meaning set forth in Section
3.2(a). 
 “Appraiser” has the meaning set forth in Section 3.2(b). 
 “Appraiser Determination” has the meaning set forth in Section 3.2(b). 
 “BHC II” means BHC Interim Funding II, L.P., a Delaware limited partnership. 
  

 - 13 - 

 “Business Day” means any day excluding Saturday, Sunday and any day on which banking
institutions located in New York are authorized by law or other governmental action to be closed, unless there shall have been an offering of Common Stock registered under the Securities Act, in which case “Business Day” means (a) if
Common Stock is listed or admitted to trading on a national securities exchange, a day on which the principal national securities exchange on which the Common Stock is listed or admitted to trading is open for business or (b) if Common Stock is
not so listed or admitted to trading, a day on which the New York Stock Exchange is open for business. 
 “Commission” means
the Securities and Exchange Commission or any other Federal agency at the time administering the Securities Act. 
 “Common
Stock” has the meaning set forth in paragraph (A) of this Warrant. 
 “Common Stock Equivalent”” means
any option, warrant, right or similar security exercisable into, exchangeable for, or convertible to Common Stock or, the economic equivalent value of Common Stock. 
 “Company” has the meaning set forth in paragraph (A) of this Warrant.  
 “Company Determination” has the meaning set forth in Section 3.1. 
 “Distribution”
has the meaning set forth in Section 4. l(c). 
 “Exchange Act” means the Securities Exchange Act of 1934, as
amended, and any successor Federal statute, and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time. 
 “Exercise Price” has the meaning set forth in paragraph (A) of this Warrant. 
 “Fair Market Value” of: 
  

	 	(i)	a share of a Common Stock or any Common Stock Equivalent as of any date of determination means: 

 (A) if the Common Stock is traded on an exchange or is quoted on the NASDAQ National Market System, then the average of the closing or
last sale prices, respectively, reported for the 20 trading days ended immediately preceding the determination date; or 
 (B)
if the Common Stock is not traded on an exchange or on the NASDAQ National Market System but is traded in the over-the-counter market, then the mean of the average of the closing bid and asked prices reported for the 20 trading days ended
immediately preceding the determination date; or 
 (C) in all other circumstances, the fair market value per share of the
Common Stock as determined in good faith by the Board of Directors of the Company, or otherwise in accordance with Section 3.1 hereof (subject to Section 3.2 hereof); 
  

 - 14 - 

	 	(ii)	a Warrant or Warrant Shares as of any date of determination, means the amount determined in good faith by the Board of Directors of the Company or otherwise in accordance with
Section 3.1 hereof (subject to Section 3.2 hereof); 

 disregarding in each case set forth in (i) and
(ii) above, absence of liquidity or marketability or discount for a minority interest. 
 “Fully Diluted Shares” has
the meaning set forth in Section 1.4. 
 “Holder” has the meaning set forth in paragraph (A) of this
Warrant. 
 “Investment Representation Letter” has the meaning set forth in Section 2.5. 
 “Initial Offering” has the meaning set forth in Section 5.1. 
 “Issuance Date” has the meaning set forth in Section 1.4. 
 “Loan and Security Agreement” means the Loan and Security Agreement, dated as of even date herewith, among the Company, as borrower, and
BHC II, as lender. 
 “Objecting Holder” has the meaning set forth in Section 3.2(a). 
 “Person” means any natural person, corporation, limited liability company, limited partnership, general partnership, joint stock
company, joint venture, association, company, trust, bank trust company, land trust, business trust or other organization, whether or not a legal entity, and any government agency or political subdivision thereof. 
 “Registrable Securities” has the meaning set forth in Section 5.1 (a). 
 “1933 Act” has the meaning set forth in Section 5.1(a). 
 “Warrant” means this Warrant(s) to purchase shares of Common Stock issued by the Company in connection with the Loan and Security
Agreement. 
 “Warrant Shares” has the meaning set forth in paragraph (A) of this Warrant. 
 All references herein to “days” shall mean calendar days unless otherwise specified. 
 ARTICLE VIII - MISCELLANEOUS 
 8.1 Notices. Unless otherwise specifically
provided herein, all notices shall be in writing addressed to the respective party as set forth below and may be personally served, telecopied or sent by overnight courier service or United States mail and shall be deemed to have given: (a) if
delivered in person, when delivered; (b) if delivered by telecopy, on the date of transmission if transmitted on a Business Day before 4:00 p.m. Eastern standard time or, if not, 

  

 - 15 - 

 
on the next succeeding Business Day; (c) if delivered by overnight courier, two (2) days after delivery to such courier properly addressed; or
(d) if by U.S. Mail, four (4) Business Days after depositing in the United States mail, with postage prepaid and properly addressed. 
  

					
	 (i)
	  	If to Company:	  	Akrion, Inc.
		  		  	6330 Hedgewood Drive, #150
		  		  	Allentown, PA 18106
		  		  	Attention: Mr. James Molinaro
		  		  	                 President and CEO
		  		  	Facsimile: (610) 391-1537
		
		  	with a copy for information only, to:
			
		  		  	Cozen O’Connor
		  		  	 1900 Market Street

		  		  	 Philadelphia, PA 19103

		  		  	 Attention: Richard J. Busis, Esq.

		  		  	 Facsimile: 215-701-2456

 (ii) In the case of the Holder, such notices and communications shall be addressed to its address
as shown on the books maintained by the Company, unless the Holder shall notify the Company that notices and communications should be sent to a different address (or telex or facsimile number), in which case such notices and communications shall be
sent to the address (or telex or facsimile number) specified by the Holder. 
 8.2 Waivers; Amendments. No failure or delay of the
Holder in exercising any power or right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any
other or further exercise thereof or the exercise of any other right or power. No notice or demand on the Company in any case shall entitle the Company to any other or future notice or demand in similar or other circumstances. The rights and
remedies of the Holder are cumulative and not exclusive of any rights or remedies which it would otherwise have. The provisions of this Warrant may be amended, modified or waived with (and only with) the prior written consent of the Company and a
majority in interest of the Holders. 
 Any amendment, modification or waiver effected pursuant to and in accordance with the provisions of
this Section 8.2 shall be binding upon the holders of this Warrant upon each future Holder thereof and upon the Company. In the event of any such amendment, modification or waiver, the Company shall give prompt notice thereof to all
Holders of this Warrant and, if appropriate, notation thereof shall be made on all Warrant thereafter surrendered for registration of transfer or exchange. 
 8.3 Governing Law. THIS WARRANT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW). 
  

 - 16 - 

 8.4 Transfer; Covenants to Bind Successor and Assigns. All covenants, stipulations, promises and
agreements in this Warrant made by or on behalf of the Company or the Holder shall bind its successors and assigns, whether so expressed or not. This Warrant and all of the Holder’s rights hereunder, shall be transferable and assignable by the
Holder hereof in whole, or from time to time in part, to any other Person, subject to the restrictions on transferability contained herein and under the applicable securities laws, provided however, that Holder may not assign its rights to a
competitor of the Company and the provisions of this Warrant shall be binding upon the Company and its successors and assigns, provided that the Company may not assign this Warrant, its rights or obligations hereunder without the Holder’s prior
written consent and inure to the benefit of the Holder hereof and its successors and assigns. 
 8.5 Severability. In case any one or
more of the provisions contained in this Warrant shall be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby.
The parties shall endeavor in good faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable
provisions. 
 8.6 Section Headings. The section headings used herein are for convenience of reference only, are not part of this
Warrant and are not to affect the construction of or be taken into consideration in interpreting this Warrant. 
 8.7 Right to Specific
Performance. The Company acknowledges and agrees that in the event of any breach of the covenants and agreements contained in this Warrant, the Holder would be irreparably harmed and could not be made whole only by the award of monetary damages.
Accordingly, the Company agrees that the Holder, in addition to any other remedy to which the Holder may be entitled at law or equity, will be entitled to seek and obtain an award of specific performance of any of such covenants and agreements.

 8.8 Consent to Jurisdiction. THE COMPANY AND HOLDER HEREBY CONSENT TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN
THE COUNTY OF NEW YORK, STATE OF NEW YORK, AND IRREVOCABLY AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS WARRANT, SHALL BE LITIGATED IN SUCH COURTS. THE COMPANY AND HOLDER ACCEPT FOR THEMSELVES AND IN CONNECTION WITH THEIR
PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS AND WAIVE ANY DEFENSE OF FORUM NON CONVENIENS, AND IRREVOCABLY AGREE TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS WARRANT. IF
EITHER THE COMPANY OR HOLDER PRESENTLY IS, OR IN THE FUTURE BECOMES, A NONRESIDENT OF THE STATE OF NEW YORK, THE COMPANY AND HOLDER HEREBY WAIVE PERSONAL SERVICE OF ANY AND ALL PROCESS AND AGREE THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE UPON THE
COMPANY AND HOLDER BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, DIRECTED TO THE COMPANY AND HOLDER, AT THE COMPANY’S OR HOLDER’S ADDRESS AS MOST RECENTLY NOTIFIED BY THE COMPANY OR HOLDER IN WRITING TO THE OTHER AND SERVICE
SO MADE SHALL BE COMPLETE TEN (10) DAYS AFTER THE SAME HAS BEEN POSTED AS AFORESAID. 
  

 - 17 - 

 8.9 Waiver Of Jury Trial. THE COMPANY AND HOLDER HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY
TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS WARRANT. THE COMPANY AND HOLDER ACKNOWLEDGE THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THE WAIVER IN
ENTERING INTO THIS WARRANT AND THAT EACH WILL CONTINUE TO RELY ON THE WAIVER IN THEIR RELATED FUTURE DEALINGS. THE COMPANY AND HOLDER FURTHER WARRANT AND REPRESENT THAT EACH HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT EACH KNOWINGLY
AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. 
 [THIS SPACE HAS BEEN INTENTIONALLY LEFT BLANK]

  

 - 18 - 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be executed in its corporate name by one of
its officers thereunto duly authorized, all as of the day and year first above written. 
  

			
	AKRION, INC.
		
	 By:
	 	 /s/ W. James Whittle

	 Name:
	 	W. James Whittle
	 Title:
	 	Chief Financial Officer

  

			
	 Accepted as of the day and year first above written:

	
	 BHC INTERIM FUNDING II, L.P.

		
	 By:
	 	 BHC Interim Funding Management, L.L.C.,
 its General
Partner

		
	 By:
	 	 BHC Investors II, L.L.C.,
 its Managing
Member

		
	 By:
	 	SHB, L.L.C,

  

			
		
	 By:
	 	 /s/ Steven H. Brooks

	 Name:
	 	Steven H. Brooks
	 Title:
	 	Managing Manager

  

			
	 Address:
	 	BHC Interim Funding II, L.P.
		 	444 Madison Avenue
		 	New York, NY 10022
	 Telephone:
	 	212-753-1991
	 Telecopier:
	 	212-753-7730

 Signature Page to WarrantStock Incentive Plan

 Exhibit 10.1 
 AKRION, INC. 
 STOCK INCENTIVE PLAN 
 1. Purpose. Akrion, Inc., a Delaware corporation (the “Company”), hereby adopts the Akrion, Inc. Stock Incentive Plan (the
“Plan”). The Plan is intended to recognize the contributions made to the Company by employees of the Company or any Affiliate (as hereinafter defined) (including employees who are members of the Board of Directors), non-employee directors
of the Company and certain consultants and advisors of the Company or any Affiliate, to provide such persons with additional incentive to devote themselves to the future success of the Company or an Affiliate, and to improve the ability of the
Company or an Affiliate to attract, retain and motivate persons upon whom the Company’s sustained growth and financial success depend, by providing such persons with an opportunity to acquire or increase their proprietary interest in the
Company through receipt of rights to acquire the Company’s common stock, $.01 par value (the “Common Stock”), and through the transfer or issuance of Common Stock. 
 2. Definitions. Unless the context clearly indicates otherwise, the following terms shall have the following meanings: 
 “Act” shall mean the Securities Act of 1933. 
 “Affiliate” shall mean a parent company or subsidiary of the Company within the meaning of Sections 424(e) and (f) of the
Code. 
 “Award” shall mean a transfer of Common Stock made pursuant to the terms of the Plan. 
 “Award Agreement” shall mean the agreement between the Company and a Grantee with respect to an Award made pursuant to the Plan.

 “Board of Directors” or “Board” shall mean the Board of Directors of the Company. 
 “Change of Control” shall have the meaning as set forth in Section 10 of the Plan. 
 “Code” shall mean the Internal Revenue Code of 1986, as amended. 
 “Committee” shall have the meaning set forth in Section 3 of the Plan. 
 “Common Stock” shall have the meaning set forth in Section 1 of the Plan. 
 “Company” shall have the meaning set forth in Section 1 of the Plan. 

 “Employee” shall mean an employee of the Company or an Affiliate. 

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
 “Fair Market Value” shall have the meaning set forth in Subsection 8(b) of the Plan. 
 “Grantee” shall mean a person to whom an Award has been granted pursuant to the Plan. 
 “ISO” shall mean an Option granted under the Plan which is intended to qualify as an “incentive stock option” within
the meaning of Section 422(b) of the Code. 
 “Non-Employee Director” shall mean a member of the Board of
Directors of the Company who is both a “non-employee” of the Company within the meaning of Rule 16b-3 and an “outside director” within the meaning of Section 162(m) of the Code. 
 “Non-qualified Stock Option” shall mean an Option granted under the Plan which is not intended to qualify, or otherwise does not
qualify, as an “incentive stock option” within the meaning of Section 422(b) of the Code. 
 “Option”
shall mean either an ISO or a Non-qualified Stock Option granted under the Plan. 
 “Optionee” shall mean a person
to whom an Option has been granted under the Plan, which Option has not been exercised and has not expired or terminated. 
 “Option Document” shall mean the document described in Section 8 of the Plan which sets forth the terms and conditions of each grant of Options under the Plan. 
 “Option Price” shall mean the price at which Shares may be purchased upon exercise of an Option, as calculated pursuant to
Subsection 8(b) of the Plan. 
 “Rule 16b-3” shall mean Rule 16b-3 promulgated under the Exchange Act. 

“Section 16 Person” shall mean any person who is an “officer” or “director” within the meaning of Rule
16a-1(f) promulgated under the Exchange Act or any successor rule. 
 “Shares” shall mean the shares of Common Stock
of the Company which are the subject of Options or granted as Awards under the Plan. 
 3. Administration of the Plan. 
 (a) Committee. The Board of Directors may administer the Plan itself or may designate a committee or committees composed of two or
more of members of the Board of 

  

 2 

 
Directors. At the discretion of the Board of Directors, a separate committee may be designated consisting of two or more Non-Employee Directors to operate
and administer the Plan with respect to only Section 16 Persons or such other persons as deemed appropriate by the Board of Directors, while appointing another committee or itself to administer the Plan with respect to all other persons
eligible to participate in the Plan. Any such committee or committees designated by the Board of Directors, and the Board of Directors itself in its administrative capacity with respect to the Plan, is referred to as the “Committee.”

 (b) Meetings. The Committee shall hold meetings at such times and places as it may determine, shall keep minutes of
its meetings, and shall adopt, amend and revoke such rules or procedures as it may deem proper; provided, however, that it may take action only upon the agreement of a majority of the whole Committee. Any action which the Committee shall take
through a written instrument signed by a majority of its members shall be as effective as though it had been taken at a meeting duly called and held. 
 (c) Indemnification. Service on the Committee shall constitute service as a member of the Board of Directors of the Company. Each member of the Committee shall be entitled, without further action on his or her
part, to indemnity from the Company and limitation of liability to the fullest extent provided by applicable law and by the Company’s Certificate of Incorporation and/or By-laws in connection with or arising out of any action, suit or
proceeding with respect to the administration of the Plan or the granting of Options thereunder in which he or she may be involved by reason of his or her being or having been a member of the Committee, whether or not he or she continues to be such
member of the Committee at the time of the action, suit or proceeding. 
 (d) Interpretation. The Committee shall have
the power and authority to interpret the Plan and to adopt rules and regulations for its administration that are not inconsistent with the express terms of the Plan. Any such actions by the Committee shall be final, binding and conclusive on all
parties in interest. 
 4. Grants and Awards under the Plan. Under the Plan, the Committee may, in its discretion, grant Options in
the form of Non-qualified Stock Options and ISOs, Awards of Common Stock or a combination thereof. 
 5. Eligibility. All Employees,
members of the Board of Directors and consultants and advisors to the Company or any Affiliate shall be eligible to receive Options and Awards hereunder. The Committee, in its sole discretion, shall determine whether an individual is qualified to
receive an Option or Award hereunder. 
 6. Shares Subject to Plan. The aggregate maximum number of Shares for which Options or Awards
may be granted pursuant to the Plan is 15,000,000. The number of Shares which may be issued under the Plan shall be further subject to adjustment in accordance with Section 11. The Shares shall be issued from authorized and unissued Common
Stock or Common Stock held in or hereafter acquired for the treasury of the Company. If an Option terminates or expires without having been fully exercised for any reason or if Shares subject to an Award have been conveyed back to the Company
pursuant to the terms of an Award Agreement, the Shares for which the Option was not exercised or the Shares that were conveyed 

  

 3 

 
back to the Company may again be the subject of one or more Options or Awards granted pursuant to the Plan. 
 7. Term of the Plan. This Plan shall become effective upon its adoption by the Board, and Options and Awards may be issued upon such adoption and
from time to time thereafter; provided, however, that the Plan shall be submitted to the holders of the Common Stock for their approval at the next annual meeting of shareholders, or prior thereto at a special meeting of shareholders expressly
called for such purpose; and provided further, that the approval of the Company’s stockholders shall be obtained within 12 months of the date of adoption of the Plan. If the Plan is not approved by the requisite vote of the stockholders
entitled to vote at a duly called stockholders’ meeting at which a quorum representing a majority of all voting stock is present in person or by proxy, then this Plan and all Options and Awards then outstanding under it shall forthwith
automatically terminate and be of no force or effect. The Plan shall expire no later than May 10, 2015, unless sooner terminated by the Board. 
 8. Option Documents and Terms. Each Option granted under the Plan shall be a Non-qualified Stock Option unless the Option shall be specifically designated at the time of grant to be an ISO for federal income tax purposes. If any
Option designated an ISO is determined for any reason not to qualify as an incentive stock option within the meaning of Section 422 of the Code, such Option shall be treated as a Non-qualified Stock Option for all purposes under the provisions
of the Plan. Options granted pursuant to the Plan shall be evidenced by the Option Documents in such form as the Committee shall from time to time approve, which Option Documents shall comply with and be subject to the following terms and conditions
and such other terms and conditions as the Committee shall from time to time require which are not inconsistent with the terms of the Plan. 
 (a) Number of Option Shares. Each Option Document shall state the number of Shares to which it pertains. An Optionee may receive more than one Option, which may include Options which are intended to be ISOs and
Options which are not intended to be ISOs, on the terms and subject to the conditions and restrictions of the Plan. The maximum number of Shares for which Options may be granted to any single Optionee in any calendar year shall be 6,000,000, subject
to adjustment as provided in Section 11. 
 (b) Option Price. Each Option Document shall state the Option Price
which, for a Non-qualified Stock Option, may be less than, equal to, or greater than the Fair Market Value of the Shares on the date the Option is granted and, for an ISO, shall be at least 100% of the Fair Market Value of the Shares on the date the
Option is granted as determined by the Committee in accordance with this Subsection 8(b); provided, however, that if an ISO is granted to an Optionee who then owns, directly or by attribution under Section 424(d) of the Code, shares possessing
more than ten percent of the total combined voting power of all classes of stock of the Company or an Affiliate, then the Option Price shall be at least 110% of the Fair Market Value of the Shares on the date the Option is granted. If the Common
Stock is traded in a public market, then the Fair Market Value per share shall be, if the Common Stock is listed on a national securities exchange or included in the Nasdaq System, the last reported sale price thereof for the “Valuation
Date” (as hereinafter defined), or, if the Common Stock is not so listed or included, the mean between the last reported “bid” and “asked” prices thereof on the 

  

 4 

 
Valuation Date, as reported on Nasdaq or, if not so reported, as reported by the National Daily Quotation Bureau, Inc. or as reported in a customary
financial reporting service, as applicable and as the Committee determines. If the Common Stock is not traded in a public market, Fair Market Value shall be determined in good faith by the Committee. For purposes of the determination of Fair Market
Value under this Section 8(b), the “Valuation Date” shall be the immediately preceding business day unless the transaction with respect to which Fair Market Value is being determined occurs following the closing of the exchange, the
Nasdaq System, Nasdaq or the financial reporting service, as applicable, in which case the Valuation Date shall be the date on which the transaction occurs. 
 (c) Exercise. An Option may be exercised in whole or in part to the extent then exercisable under the terms of the relevant Option
Document and this Plan, provided that no Option shall be deemed to have been exercised prior to the receipt by the Company of written notice of such exercise and (unless arrangements satisfactory to the Company have been made for payment through a
broker in accordance with procedures permitted by Regulation P of the Federal Reserve Board) of payment in full of the Option Price for the Shares to be purchased. Each such notice shall specify the number of Shares to be purchased and shall (unless
the Shares are covered by a then current registration statement or a Notification under Regulation A under the Act), contain the Optionee’s acknowledgment in form and substance satisfactory to the Company that (i) such Shares are being
purchased for investment and not for distribution or resale (other than a distribution or resale which, in the opinion of counsel satisfactory to the Company, may be made without violating the registration provisions of the Act), (ii) the
Optionee has been advised and understands that (A) the Shares have not been registered under the Act and are “restricted securities” within the meaning of Rule 144 under the Act and are subject to restrictions on transfer and
(B) the Company is under no obligation to register the Shares under the Act or to take any action which would make available to the Optionee any exemption from such registration, (iii) such Shares may not be transferred without compliance
with all applicable federal and state securities laws, and (iv) an appropriate legend referring to the foregoing restrictions on transfer and any other restrictions imposed under the Option Documents may be endorsed on the certificates.
Notwithstanding the foregoing, if the Company determines that issuance of Shares should be delayed pending (1) registration under federal or state securities laws, (2) the receipt of an opinion of counsel satisfactory to the Company that
an appropriate exemption from such registration is available, (3) the listing or inclusion of the Shares on any securities exchange or an automated quotation system or (4) the consent or approval of any governmental regulatory body whose
consent or approval is necessary in connection with the issuance of such Shares, the Company may defer exercise of any Option granted hereunder until any of the events described in this sentence has occurred. 
 (d) Medium of Payment. Subject to the terms of the applicable Option Document, an Optionee shall pay for Shares (i) in cash,
(ii) by certified or cashier’s check payable to the order of the Company, or (iii) by such other mode of payment as the Committee may approve, including payment through a broker in accordance with procedures permitted by Regulation T
of the Federal Reserve Board. Furthermore, payment may be made in whole or in part in shares of the Company’s Common Stock held by the Optionee. If payment is made in whole or in part in shares of the Company’s Common Stock, then the
Optionee shall deliver to the Company certificates registered in the name of such Optionee representing the shares owned 

  

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by such Optionee, free of all liens, claims and encumbrances of every kind and having an aggregate Fair Market Value on the date of delivery that is at least
as great as the Option Price of the Shares (or relevant portion thereof) with respect to which such Option is to be exercised by the payment in shares of Common Stock, endorsed in blank or accompanied by stock powers duly endorsed in blank by the
Optionee. In the event that certificates for shares of Common Stock delivered to the Company represent a number of shares in excess of the number of shares required to make payment for the Option Price of the Shares (or relevant portion thereof)
with respect to which such Option is to be exercised by payment in shares of Common Stock, the stock certificate or certificates issued to the Optionee shall represent (i) the Shares in respect of which payment is made, and (ii) such
excess number of shares. Notwithstanding the foregoing, the Committee may impose from time to time such limitations and prohibitions on the use of shares of the Common Stock to exercise an Option as it deems appropriate. 
 (e) Duration of Options. 
 (i) Each Option and all rights thereunder shall expire and the Option shall no longer be exercisable on a date not later than 10 years from the date on which the Option was granted. Options shall expire and cease to
be exercisable on such earlier date as the Committee may determine at the time of grant, and Options also shall be subject to termination before their expiration date as provided in the Plan or in the applicable Option Document. 
 (ii) In the case of an ISO, if the Optionee on the date of grant owns, directly or by attribution under Section 424(d) of the Code,
shares possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of an Affiliate, then the Option Document applicable thereto shall specify an expiration date that is (or is not later
than) the fifth anniversary of the date of grant. 
 (iii) The Board of Directors may set an accelerated expiration date in
the event of a Change of Control or in the event of the liquidation or dissolution of the Company. 
 (f) Transfers. No
Option granted under the Plan may be transferred, except by will or by the laws of descent and distribution except as otherwise set forth in the Option Document or to the extent that the Committee otherwise determines. An Optionee may transfer any
Non-qualified Stock Option to such Optionee’s family members, entities for the benefit of such family members and such other persons as the Committee may determine; provided that the Optionee receives no consideration for the transfer and the
transferred Non-qualified Stock Option shall continue to be subject to the same terms and conditions as were applicable to the Non-qualified Stock Option immediately before the transfer. Except as otherwise set forth above, Options are not
transferable. 
 (g) Limitation on ISO Grants. To the extent that the aggregate fair market value of the shares of
Common Stock (determined at the time the ISO is granted) with respect to which ISOs under all incentive stock option plans of the Company or its Affiliates are exercisable for the first time by the Optionee during any calendar year exceeds $100,000,
such ISOs shall, to the extent of such excess, be treated as Non-qualified Stock Options. 
  

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 (h) Other Provisions. Subject to the provisions of the Plan, the Option Documents
may contain such other provisions including, without limitation, additional restrictions upon the exercise of the Option or additional limitations upon the term of the Option as the Committee shall deem advisable. 
 (i) Amendment. Subject to the provisions of the Plan, the Committee shall have the right to amend any Option Document issued to an
Optionee, subject to the Optionee’s consent if such amendment is not favorable to the Optionee, or if such amendment has the effect of changing an ISO to a Non-Qualified Stock Option, except that the consent of the Optionee shall not be
required for any amendment made pursuant to Subsection 8(e)(iii) or Section 10 of the Plan, as applicable. 
 9. Terms and Conditions
of Awards. Awards granted pursuant to the Plan shall be evidenced by written Award Agreements in such form as the Committee shall from time to time approve, which Award Agreements shall comply with and be subject to the following terms and
conditions and such other terms and conditions which the Committee may from time to time require which are not inconsistent with the terms of the Plan. 
 (a) Number of Shares. Each Award Agreement shall state the number of Shares of Common Stock to which it pertains. 
 (b) Grant. Stock certificates evidencing Shares granted pursuant to an Award shall be issued in the sole name of the Grantee. Notwithstanding the foregoing, as a precondition to a grant, the Company may require
an acknowledgment by the Grantee as required with respect to Options under Subsection 8(c). 
 (c) Conditions. The
Committee shall specify in an Award Agreement the restrictions, if any, to which an Award is subject, including but not limited to the performance goals that must be achieved to have the restrictions removed from the Award, the restriction periods
applicable to each Award and whether such Awards are subject to a vesting schedule. The Committee may specify in an Award Agreement any conditions under which the Grantee of that Award shall be required to convey to the Company the Shares covered by
the Award. Upon the occurrence of any such specified condition, the Grantee shall forthwith surrender and deliver to the Company the certificates evidencing such Shares as well as completely executed instruments of conveyance. The Committee, in its
discretion, may provide that certificates for Shares transferred pursuant to an Award be held in escrow by the Company or an officer of the Company until such time as each and every condition has lapsed and that the Grantee be required, as a
condition of the Award, to deliver to such escrow agent or Company officer stock powers covering the Award Shares duly endorsed by the Grantee. Unless otherwise provided in the Award Agreement, distributions made on Shares held in escrow will be
deposited in escrow, to be distributed to the party becoming entitled to the Shares on which the distribution was made. Stock certificates evidencing Shares subject to conditions shall bear a legend to the effect that the Common Stock evidenced
thereby is subject to repurchase or conveyance to the Company in accordance with an Award made under the Plan and that the Shares may not be sold or otherwise transferred. 
  

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 (d) Lapse of Conditions. Upon termination, or lapse of each and every forfeiture
condition, if any, the Company shall cause certificates without the legend referring to the Company’s above-described rights (but with any other legends that may be appropriate) evidencing the Shares covered by the Award to be issued to the
Grantee upon the Grantee’s surrender of the legended certificates held by him or her to the Company. 
 (e) Rights as
Stockholder. Upon payment of the purchase price, if any, for Shares covered by an Award and compliance with the acknowledgment requirement of Subsection 9(b), the Grantee shall have all of the rights of a stockholder with respect to the Shares
covered thereby, including the right to vote the Shares and receive all dividends and other distributions paid or made with respect thereto, except to the extent otherwise provided by the Committee or in the Award Agreement. 
 (f) Amendment. Subject to the provisions of the Plan, the Committee shall have the right to amend any Award Agreement issued to a
Grantee, subject to the Grantee’s consent if such amendment is not favorable to the Grantee, except that the consent of the Grantee shall not be required for any amendment made pursuant to Section 10 of the Plan. 
 10. Change of Control. 
 (a) Definition. A “Change of Control” shall be deemed to have occurred upon the earliest to occur of the following events: 
 (i) any “person” as such term is used in Sections 13(d) and 14(d) of the Exchange Act other than the Company, any subsidiary of the Company, any “person” (as hereinabove defined) acting on behalf
of the Company as underwriter pursuant to an offering who is temporarily holding securities in connection with such offering, any trustee or other fiduciary holding securities under an employee benefit plan of the Company, or any “person”
(as hereinabove defined) who, on the date the Plan is effective, shall have been the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) of or have voting control over shares of capital stock of the Company possessing more
than 25% of the combined voting power of the Company’s then outstanding securities, is or becomes the “beneficial owner” (as hereinabove defined), directly or indirectly, of securities of the Company representing 50% or more of the
combined voting power of the Company’s then outstanding securities; 
 (ii) the stockholders of the Company approve a
merger or consolidation of the Company with any other corporation or other legal entity, other than (A) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately
after such merger or consolidation or (B) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no “person” (as hereinabove defined) other than a “person” who, on
the date the Plan is effective, shall have been the “beneficial owner” (as hereinabove defined) of or have voting control over shares of capital stock of the Company possessing more than 25% of the combined voting power of the 

  

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Company’s then outstanding securities acquires more than 50% of the combined voting power of the Company’s then outstanding securities; 

(iii) the stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition
by the Company of all or substantially all of the Company’s assets (or any transaction having a similar effect); or 
 (iv) a “change of control” as may hereinafter be defined by the Board of Directors for the express purposes of this Plan has occurred. 
 (b) Effect of Change of Control. In the event of a Change of Control, the Committee may take whatever action, if any, it deems necessary or desirable in its sole discretion with respect to the outstanding
Options and Awards. Such action may include, without limiting the generality of the foregoing, (i) providing for the automatic acceleration of vesting and exercisability of the Options and/or the lapse of restrictions on Awards; (ii) after
giving Optionees an opportunity to exercise their Options, terminating any or all unexercised Options at such time or times as the Committee may determine; (iii) requiring that Optionees and Grantees surrender their Options and Awards in
exchange for a payment by the Company equal to the amount by which the Fair Market Value at that time of the Shares subject to the Options (to the extent the Options are then vested) or Awards exceeds the Option Price for the Shares and the purchase
price, if any, for the Shares granted pursuant to an Award; and/or (iv) any combination of the foregoing actions and/or such alternative or additional actions as the Committee may specify. Any such action shall take place as of the date of the
Change of Control or such other date as the Committee may specify. 
 (c) Limitations. Notwithstanding the foregoing,
no acceleration of vesting or exercisability, cancellation, lapse of restrictions, termination or payment shall occur with respect to any Option or Award if the Board of Directors (as constituted prior to the Change in Control date) reasonably
determines in good faith, prior to the Change in Control, that all outstanding Options and/or Awards shall be assumed and honored, or new rights substituted therefor, by the party acquiring control of the Company; provided, however, that any such
honored, assumed and/or substituted Options and/or Awards must provide the Optionee and/or Grantee with rights and benefits (including, but not limited to, substantially equivalent economic value, exercise and vesting provisions, and similar or
better methods of exercise and payment) substantially equivalent to or better than the rights and benefits under the Optionee’s and/or Grantee’s outstanding Options and/or Awards prior to the transaction constituting the Change of Control.

 11. Adjustments on Changes in Capitalization. 
 (a) If a dividend shall be declared upon the Common Stock payable in shares of Common Stock or if a stock split is declared with respect
to the Common Stock, the number of shares of Common Stock then subject to any Option outstanding under the Plan and the number of Shares reserved for the grant of Options and Awards pursuant to the Plan but not yet subject to an Option or Award
shall be adjusted by adding to each such Share the number of shares which would be distributable in respect thereof if such Shares had been outstanding on the date fixed for determining the shareholders of the Company entitled to receive such stock
dividend or stock split. In the event that the outstanding shares of Common Stock shall be 

  

 9 

 
changed into or exchanged for a different number or kind of shares of stock or other securities of the Company or of another corporation, whether through
reorganization, recapitalization, reverse or forward stock split, combination of shares, merger, consolidation or otherwise, there shall be substituted for each share of Common Stock subject to any such Option and for each share of Common Stock
reserved for the grant of Options and Awards pursuant to the Plan but not yet subject to an Option or Award, the number and kind of shares of stock or other securities into which each outstanding share of Common Stock shall have been so changed or
for which each such share shall have been exchanged. In the event there shall be any change, other than as specified above in this Section 11, in the number or kind of outstanding shares of Common Stock or of any stock or other securities into
which such Common Stock shall have been changed or for which it shall have been exchanged, then if the Committee shall in its sole discretion determine that such change equitably requires an adjustment in the number or kind of Shares theretofore
reserved for the grant of Options pursuant to the Plan but not yet subject to an Option or Award and of the Shares then subject to Options, such adjustment shall be made by the Committee and shall be effective and binding for all purposes of the
Plan and of each Option and Award outstanding thereunder. In the case of any such substitution or adjustment as provided for in this Section 11, the Option Price for each share of Common Stock or other security which shall have been substituted
for each share of Common Stock covered by an outstanding Option shall be adjusted appropriately to reflect such substitution or adjustment. 
 (b) Any adjustment under this Section 11 in the number of Shares subject to Options shall apply proportionately to only the unexercised portion of any Option granted hereunder. If fractions of a Share would
result from any such adjustment, the adjustment shall be revised to the next lower whole number of Shares. 
 (c) The
Committee shall have authority to determine the adjustments to be made under this Section, and any such determination by the Committee shall be final, binding and conclusive. 
 12. Effect of Termination of Employment. 
 (a) In the event of termination of an Optionee or Grantee’s employment or service with the Company and Affiliates or status as a director by reason of such Optionee or Grantee’s death or disability, any
outstanding Option or Award held by such Optionee or Grantee shall, notwithstanding the extent to which such Option or Award was exercisable prior to termination of employment, immediately become exercisable as to the total number of Shares
purchasable thereunder. In the event of termination of an Optionee or Grantee’s employment or service with the Company and Affiliates or status as a director by reason of such Optionee or Grantee’s retirement with the consent of the Board
or in accordance with an applicable tax-qualified retirement plan, any outstanding Option or Award held by such Optionee or Grantee shall be exercisable only to the extent to which such Option or Award was exercisable immediately prior to
retirement. Any such Option or Award that is exercisable under this Section 12 shall remain so exercisable at any time prior to its expiration date or, if earlier, the first anniversary of termination of the Optionee or Grantee’s
employment or service with the Company and Affiliates or status as a director. 
  

 10 

 (b) In the event of termination of an Optionee’s or Grantee’s employment or
service with the Company or status as a director for any reason other than death, disability, or retirement with the consent of the Board or in accordance with an applicable tax-qualified retirement plan, any outstanding Option or Award held by such
Optionee or Grantee shall be exercisable only to the extent such Option or Award was exercisable immediately before such termination and shall remain so exercisable for a period ending on the earlier of the expiration date of the Option or Award and
a date 90 days after the termination of employment or service with the Company or status as director. Transfer of employment between the Company and an Affiliate or between one Affiliate and another shall not constitute termination of employment.

 (c) Notwithstanding anything to the contrary contained in the Plan or an Option Document, an ISO shall be treated as a
Non-qualified Stock Option to the extent such ISO is exercised at any time after the expiration of the time period permitted under the Code for the exercise of an ISO. 
 13. Amendment of the Plan. The Board of Directors may amend the Plan from time to time in such manner as it may deem advisable. Nevertheless, the Board of Directors of the Company may not change the class of
individuals eligible to receive an ISO or increase the maximum number of Shares as to which Options may be granted without obtaining approval, within twelve months before or after such action, by the stockholders of the Company in the manner
required by applicable state law. Notwithstanding anything herein to the contrary, the Committee may, at its sole discretion, amend the Plan and any outstanding Option or Award to (a) eliminate any provision it determines is no longer required
to comply with Rule 16b-3 as a result of revisions to Rule 16b-3 which are generally effective after the date the Plan is effective or (b) provide the holder of the Option or Award an exemption from potential liability under Section 16(b)
of the Exchange Act and the rules and regulations thereunder. 
 14. No Commitment to Retain. The grant of an Option or Award pursuant
to the Plan shall not be construed to imply or to constitute evidence of any agreement, express or implied, on the part of the Company or any Affiliate to retain the Optionee or Grantee as an employee, consultant or advisor of the Company or any
Affiliate, as a member of the Board of Directors or in any other capacity. 
 15. Withholding of Taxes. In connection with any event
relating to an Option or Award, the Company shall have the right to (a) require the recipient to remit or otherwise make available to the Company an amount sufficient to satisfy any federal, state and/or local withholding tax requirements prior
to the delivery or transfer of any certificate or certificates for such Shares or (b) take whatever other action it deems necessary to protect its interests with respect to tax liabilities. The Company’s obligations under the Plan shall be
conditioned on the Optionee’s or Grantee’s compliance, to the Company’s satisfaction, with any withholding requirement. 
 16.
Compliance with Section 162(m). This Plan is intended to comply with Section 162(m) of the Code with respect to qualified performance-based Awards that may be awarded by the Committee to eligible participants. For this purpose, an
Award shall constitute qualified performance-based compensation to the extent that it is granted by the Committee on account of the attainment of one or more preestablished, objective performance goals established by the 

  

 11 

 
Committee, the material terms of which are disclosed to the stockholders of the Company and satisfaction of such performance goals are certified by the
Committee. 
 17. Parachute Payments. Notwithstanding anything herein to the contrary, if the right to receive or benefit from any
grant of an Option or an Award, either alone or together with payments that an Optionee or Grantee has the right to receive from the Company, would constitute a “parachute payment” under Section 280G of the Code, all such payments may
be reduced, in the discretion of the Committee, to the largest amount that will avoid an excise tax to the Optionee or Grantee under Section 280G of the Code. 
 18. Interpretation. The Plan is intended to enable transactions under the Plan with respect to directors to satisfy the conditions of Rule 16b-3; to the extent that any provision of the Plan would cause a
conflict with such conditions or would cause the administration of the Plan as provided in Section 3 to fail to satisfy the conditions of Rule 16b-3, such provision shall be deemed null and void to the extent permitted by applicable law.

 19. Governing Law. The granting of Options and Awards and the issuance of Shares under the Plan shall be subject to all applicable
laws and regulations and to such approvals by any governmental agency or national securities exchanges as may be required. To the extent not pre-empted by federal law, the Plan and all Option Documents and Award Agreements hereunder shall be
construed in accordance with and governed by the laws of Pennsylvania. 
  

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