Document:

evc-ex101_14.htm

Exhibit 10.1

EMPLOYMENT AGREEMENT 

This Employment Agreement (the “Agreement”) is effective as of January 1, 2020, by and between Entravision Communications Corporation, a Delaware corporation (together with its successors and assigns permitted under the Agreement, the “Company”), and Walter F. Ulloa (the “Executive”) with reference to the following facts:

WHEREAS, the Company and the Executive previously entered into that certain Employment Agreement effective as of January 1, 2017 (the “Prior Agreement”).

WHEREAS, the Company and the Executive desire to enter into this Agreement to provide for the Executive’s continued employment by the Company, upon the terms and conditions set forth herein.

NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows: 

1.Employment.  The Company hereby agrees to the Executive’s employment, and the Executive hereby accepts such employment and agrees to perform his duties and responsibilities in accordance with the terms and conditions hereinafter set forth. 

(a)Employment Term.  The term of the Executive’s employment under this Agreement shall commence as of January 1, 2020 (the “Effective Date”) and shall continue until December 31, 2022, unless earlier terminated in accordance with Section 4 or Section 5 hereof (such period, or until such later date to which the term of the Executive’s employment under the Agreement shall have been extended, is hereinafter referred to as the “Employment Term”). 

(b)Duties and Responsibilities.  The Executive shall serve as Chairman and Chief Executive Officer of the Company.  During the Employment Term, the Executive shall perform all duties and accept all responsibilities incident to such position or other appropriate duties as may be assigned to him by the Company’s Board of Directors (the “Board”).  Except to attend to those business interests of the Executive set forth on Schedule A attached hereto and incorporated herein by this reference, the Executive shall devote his full productive time and best efforts to the performance of his duties and responsibilities under this Section 1(b).

(c)Base Salary.  For all of the services rendered by the Executive hereunder for the first calendar year commencing on the Effective Date, the Company shall pay the Executive an annual base salary (“Base Salary”) of $ 1,378,912, payable in installments at such times as the Company shall pay its other senior level executives (but in any event no less often than monthly).  The Executive’s Base Salary shall be reviewed at least annually prior to each anniversary of the Effective Date and, in the discretion of the Compensation Committee (“Compensation Committee”) of the Board, the Executive’s Base Salary may be increased.  In reviewing increases in the Executive’s Base Salary, the Compensation Committee shall consider factors including, but not limited to, the market for executives with skills and experience similar to those of the Executive, performance considerations, and the nature and extent of salary increases given to other employees of the Company during the prior year.  In no event shall the Executive’s Base Salary be decreased to an amount less than $1,378,912 per annum.  

 

			
	
 
	
 
	
 

 

(d)Annual Bonus.  In addition to the Base Salary provided for in Section 1(c) above, the Executive shall be eligible to receive an annual bonus (“Annual Bonus”) pursuant to such factors, criteria or annual bonus plan(s) of the Company as determined by the Compensation Committee from time to time.  The Executive’s annual target bonus under such plan(s) shall equal 100% of his Base Salary.  The Compensation Committee shall have the discretion to determine, on either a prospective or retrospective basis, the factors, criteria or annual bonus plan(s), including performance goals which must be met, if any, for such Annual Bonus to be paid to the Executive for each applicable year.  The Annual Bonus will be paid in the year following the annual calendar-year performance period to which it relates, as soon as practicable after the completion of the Company’s year-end audited financial statements. 

(e)Equity Incentive Grants.  The Executive shall be eligible for grants of stock options, restricted stock and other equity incentives pursuant to the Entravision Communications Corporation 2004 Equity Incentive Plan (or any successor plan thereto) on the same terms applicable to the Company’s other executive officers.

(f)Automobile Allowance.  During the Employment Term, the Executive shall be entitled to receive a Two Thousand Dollars ($2,000) monthly automobile allowance, payable monthly in advance, in accordance with the Company’s normal payroll practices, which shall include all costs attendant to the use of the automobile, including, without limitation, liability and property insurance coverage, costs of maintenance and fuel.  Notwithstanding the foregoing, the amount of the monthly automobile allowance shall be reviewed by the Company annually.

(g)Benefit Coverages.  During the Employment Term, the Company shall provide medical and dental coverage for the Executive and the Executive’s dependents at no cost to the Executive (or reimburse Executive for his expenses incurred in connection therewith in accordance with the reimbursement provisions in Section 1(h) below); provided that if the provision of any such coverage under a fully-insured plan would subject the Company to an excise tax, then the foregoing provision shall cease to apply.  During such Employment Term, the Executive shall also be entitled to participate in all employee pension and welfare benefit plans and programs made available to the Company’s senior level executives as a group or to its employees generally, as such plans or programs may be in effect from time to time (the “Benefit Coverages”), including, without limitation, pension, profit sharing, savings and other retirement plans or programs, short-term and long- term disability and life insurance plans, accidental death and dismemberment protection and travel accident insurance.

(h)Reimbursement of Expenses; Time Off; Residence.  The Executive shall be provided with full and prompt reimbursement of expenses related to his employment by the Company (including mobile telephone usage) on a basis no less favorable than that which may be authorized from time to time by the Board, in its sole discretion, for senior level executives as a group.  The Executive will be entitled to discretionary time off in accordance with the policies established by the Company for its employees, as may be amended from time to time; provided, that in the event that the Executive is entitled to receive accrued vacation time in accordance with such policies the Executive will be entitled to receive no less than six (6) weeks per year of accrued vacation time.  The Executive will also be entitled to the paid holidays as set forth in the Company’s policies.  The Executive currently resides in the Westside Los Angeles, California 

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area, and the Company agrees that he shall not be required to relocate his residence from that area without his prior written consent (which may be withheld in his sole discretion), or from any other area to which he may voluntarily move with the Company’s prior written consent, during the Employment Term.

(i)Tax Withholding.  The Company may withhold from any compensation or other benefits payable under this Agreement all federal, state, city or other taxes as shall be required pursuant to any law or governmental regulation or ruling.

2.Indemnification; Insurance.  The Company shall indemnify the Executive to the fullest extent allowed by applicable law pursuant to that certain Indemnification Agreement dated as of August 1, 2000 by and between the Company and the Executive, as the same may be amended from time to time.  The Executive shall be covered by the Company’s directors’ and officers’ liability insurance policy, if any.

3.Proprietary Information; Non-Compete. 

(a)Confidential Information.  The Executive recognizes and acknowledges that by reason of his employment by and service to the Company during and, if applicable, after the Employment Term, he has had and will continue to have access to certain confidential and proprietary information relating to the Company’s business (“Confidential Information”).  The Executive covenants that he will not, unless expressly authorized in writing by the Company, at any time during the course of his employment divulge or disclose any Confidential Information to any person, firm or corporation except in connection with the performance of his duties for the Company and in a manner consistent with the Company’s policies regarding Confidential Information.  The Executive also covenants that at any time after the termination of such employment, directly or indirectly, he will not divulge or disclose any Confidential Information to any person, firm or corporation, unless such information is in the public domain through no fault of the Executive or except when required to do so by law.  All written Confidential Information (including, without limitation, in any computer or other electronic format) which comes into the Executive’s possession during the course of his employment shall remain the property of the Company.  Except as required in the performance of the Executive’s duties for the Company, or unless expressly authorized in writing by the Company, the Executive shall not remove any written Confidential Information from the Company’s premises, except in connection with the performance of his duties for the Company and in a manner consistent with the Company’s policies regarding Confidential Information.  Upon termination of the Executive’s employment, the Executive agrees immediately to return to the Company all written Confidential Information in his possession.

(b)Non-Compete; Non-Solicitation.  Except for those existing business activities set forth on Schedule A attached hereto, the Executive shall not engage in, independently or with others, any business activity of any type or description that is in competition with the Company.  Notwithstanding the foregoing, the Executive may own securities of publicly traded or private companies competitive with the business of the Company so long as such shares do not constitute five percent (5%) or more of the outstanding securities of any such company.  The Executive further agrees that for as long as this Agreement remains in effect and for a period of twelve (12) months after the termination of this Agreement by the 

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Company or by the Executive, in each case for any reason whatsoever or for no reason whatsoever, the Executive will not induce or attempt to induce, directly or indirectly, any person to leave his or her employment with the Company.

4.Termination.  The Employment Term shall terminate upon the occurrence of any one of the following events:

(a)Disability.  The Company may terminate the Employment Term if the Executive is unable substantially to perform his duties and responsibilities hereunder to the full extent required by the Company by reason of his illness, injury or incapacity for six (6) consecutive months, or for more than six (6) months in the aggregate during any period of twelve (12) calendar months.  In the event of such termination, the Executive shall be entitled to receive the Severance Package (as defined in Section 4(d)), which shall be paid as set forth in that Section.  In such event, the Company shall have no further liability or obligation to the Executive for compensation under this Agreement except as provided in this Section 4(a).  The Executive agrees, in the event of a dispute under this Section 4(a), to submit to a physical examination by a licensed physician selected by the Company.  The Company agrees that the Executive shall have the right to have his personal physician present at any examination conducted by the physician selected by the Company.

(b)Death.  The Employment Term shall terminate in the event of the Executive’s death.  In such event, the Company shall pay to the Executive’s executors, legal representatives or administrators, as applicable, the Severance Package (as defined in Section 4(d)), which shall be paid as set forth in that Section; provided, that with respect to the benefit provided in Section 4(d)(iv), the Executive’s estate or designated beneficiaries shall be entitled to any other benefits in accordance with applicable plans and programs of the Company.  In the event of the Executive’s death, the Company shall have no further liability or obligation under this Agreement to the Executive’s executors, legal representatives, administrators, heirs or assigns or any other person claiming under or through him except as provided in this Section 4(b).

(c)Termination by the Company With Cause.  The Company may terminate the Employment Term, at any time, for “Cause”, in which event all payments under this Agreement shall cease, except the Company shall pay to the Executive any amounts earned, accrued or owing but not yet paid pursuant to Section 1 above to the extent previously earned through the Termination Date, which shall be paid on the Termination Date.  For purposes of this Agreement, the Executive’s employment may be terminated for “Cause” (i) immediately if the Executive is convicted of a felony or (ii) following the determination by the Board (without the Executive’s participation) that the Executive has engaged in intentional fraud or intentional misappropriation of Company assets.

(d)Termination by the Company Without Cause.  The Company may terminate the Employment Term, at any time, without Cause.  In the event the Executive is terminated without Cause, subject to Section 8, the Executive shall be entitled to receive:

(i)any amounts earned, accrued or owing but not yet paid pursuant to Section 1 above, which shall be paid on the Termination Date;

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(ii)a cash payment in an amount equal to the greater of: (A) two (2) times the Executive’s then-current Base Salary, or (B) the amount of the Executive’s then-current Base Salary multiplied by a fraction, the numerator of which is the number of months remaining in the Term (with any partial months rounded up to the next highest number), and the denominator of which is 12 (i.e., the total number of months in a calendar year);

(iii)a cash payment in an amount equal to two (2) times the average Annual Bonus received by the Executive for the three (3) years preceding such termination, paid in a lump sum on the sixty-first (61st) day following the Executive’s “separation from service” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”);

(iv)a continuation of all Benefit Coverages for which the Executive is eligible to participate as of the Termination Date in a fashion which is similar to those which the Executive is receiving immediately prior to the Termination Date (or reimbursement of the Executive’s expenses incurred in connection therewith) for a period of two (2) years after such termination without Cause; and

(v)notwithstanding any provision to the contrary in the Entravision Communications Corporation 2004 Equity Incentive Plan (or any agreement entered into thereunder or any successor stock compensation plan or agreement thereunder), (A) immediate vesting of, and the lapse of all restrictions applicable to, all unvested stock options and any other equity incentives that vest solely based on the passage of time granted to the Executive and outstanding immediately prior to the Termination Date; and (B) vesting of any performance based equity incentives awarded to the Executive and outstanding immediately prior to the Termination Date, such vesting to occur in accordance with the terms of their applicable award agreements and plans determined as if the Executive had not terminated employment with the Company.  

Amounts payable and benefits to be received pursuant to subsections (i), (ii), (iii), (iv) and (v) of the preceding sentence of this Section 4(d) will be collectively referred to herein as the “Severance Package.” 

Subject to Section 9, the amount payable under subsection (ii) shall be paid in twelve (12) equal monthly installments, commencing with the first payroll date that occurs coincident with or following the sixty-first (61st) day after the Executive’s “separation from service” within the meaning of Section 409A of the Code.  Subject to Section 9, each subsequent monthly installment shall thereafter be paid on a regularly scheduled payroll date of the Company. 

(e)Constructive Termination Without Cause. 

(i)Constructive Termination Without Cause shall mean a termination of the Executive’s employment at his initiative following the occurrence, without the Executive's written consent, of one or more of the following events: 

	
 
	
(A)
	
a material reduction in the Executive’s then current Base Salary; 

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(B)
	
a material diminution in the Executive’s duties, title, responsibilities, authority as Chairman and Chief Executive Officer or the assignment to the Executive of duties which are materially inconsistent with his duties or which materially impair the Executive’s ability to function in his then current position; and

	
 
	
(C)
	
The relocation of the Company’s principal executive office to a location more than 20 miles from its present location in Santa Monica, California, but only if the Executive is required to change his principal place of employment to such new location.

(ii)In the event of a Constructive Termination Without Cause, subject to Section 8, the Executive shall be entitled to receive the Severance Package as if the Executive had been terminated by the Company without Cause under Section 4(d).  

(iii)The Executive’s employment may be terminated by the Executive by written notice to the Company within ninety (90) days of the initial existence of the event constituting a Constructive Termination Without Cause; provided, however, that the Company shall be given a period of thirty (30) days from the date of receipt of such notice to cure any such event, and if the Company cures such event within such thirty (30) day period, the Executive shall be permitted to revoke his notice of termination.  The date of termination will not be more than 10 days following the end of such cure period.

5.Payments Upon a Change in Control. 

(a)Definitions.  For all purposes of this Section 5, the following terms shall have the meanings specified in this Section 5(a) unless the context clearly otherwise requires: 

(i)“Change in Control” means: 

(A)a merger or acquisition in which the Company is not the surviving entity, except for a transaction the principal purpose of which is to change the state of the Company’s incorporation; 

(B)a stockholder approved sale, transfer or other disposition of all or substantially all of the assets of the Company; 

(C)a transfer of all or substantially all of the Company’s assets pursuant to a partnership or joint venture agreement or similar arrangement where the Company’s resulting interest is less than fifty percent (50%); 

(D)any reverse merger in which the Company is the surviving entity but in which fifty percent (50%) or more of the Company’s outstanding voting stock is transferred to holders different from those who held the stock immediately prior to such merger; 

(E)on or after the date hereof, a change in ownership of the Company through an action or series of transactions, such that any person is or becomes the beneficial owner, directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the securities of the combined voting power of the Company’s outstanding securities; or 

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(F)a majority of the members of the Board are replaced during any twelve (12) month period by directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of such appointment of election. 

(ii)“Termination Date” shall mean the effective date of the Executive’s Termination of Employment. 

(iii)“Termination of Employment” shall mean the termination by the Company of the Executive's actual employment relationship with the Company. 

(iv)“Termination Upon a Change in Control” shall mean that upon or within two (2) years after a Change in Control, there is a Constructive Termination Without Cause, or there is any other Termination of Employment other than (i) as a result of the Executive’s disability, as described in Section 4(a) above, (ii) the Executive’s death, as described in Section 4(b) above, or (ii) with Cause, as described in Section 4(c) above.  

(b)Notice of Termination.  Any Termination Upon a Change in Control shall be communicated by a Notice of Termination to the other party hereto given in accordance with Section 13 below.  For purposes of this Agreement, a “Notice of Termination” means a written notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) briefly summarizes the facts and circumstances deemed to provide a basis for a Termination of Employment and the applicable provision hereof and (iii) if the Termination Date is other than the date of receipt of such notice, specifies the Termination Date (which date shall not be more than fifteen (15) days after the giving of such notice, except that if the termination is a Constructive Termination Without Cause, the date shall be thirty-one (31) days after the giving of such notice). 

(c)Severance Compensation Upon Termination.  In the event of the Executive’s Termination Upon a Change in Control, subject to Section 8, the Executive shall be entitled to receive the Severance Package, except that: 

(i)the payment provided in Section 4(d)(ii) shall be an amount equal to three (3) times the Executive’s then-current Base Salary;

(ii)the payment provided in Section 4(d)(iii) shall be an amount equal to three (3) times the average Annual Bonus received by the Executive for the three (3) years preceding such termination; 

(iii)payment of the amount described in clauses (i) and (ii) shall be made in a lump sum on the sixty-first (61st) day following the Executive’s separation from service (within the meaning of Code Section 409A) from the Company; and 

(iv)the provisions of Section 4(d)(v) shall also apply to all stock options, restricted stock units and any other equity incentives granted to the Executive after the Effective Date.  

In such event, the Company shall have no further liability or obligation to the Executive for compensation under this Agreement except as otherwise specifically provided in this Agreement.  

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A voluntary resignation by the Executive shall not be deemed a breach of this Agreement and shall not affect any rights of the Executive accrued through the date of such resignation.  Notwithstanding the foregoing, if the Change in Control event does not constitute a change in control within the meaning of Code Section 409A, then, any portion of the severance amount described in clause (i) of this Section 5(c) that is subject to Code Section 409A shall be paid in twelve (12) equal monthly installments as provided in Section 4(d). 

6.Non-Exclusivity of Rights.  Nothing in this Agreement shall prevent or limit the Executive’s continuing or future participation in or rights under any benefit, bonus, incentive or other plan or program provided by the Company or any affiliate and for which the Executive may qualify; provided, however, that if the Executive becomes entitled to the payments provided for in this Agreement, the Executive hereby waives his right to receive payments under any severance plan or similar program applicable to all employees of the Company. 

7.Survivorship.  The respective rights and obligations of the parties hereunder shall survive any termination of the Executive's employment to the extent necessary to the intended preservation of such rights and obligations. 

8.Release.  Receipt of the Severance Package pursuant to Sections 4(d), 4(e) or 5(c) shall be in lieu of all other amounts payable by the Company to the Executive and in settlement and complete release of all claims the Executive may have against the Company other than those arising pursuant to payment of the Severance Package.  Notwithstanding any provision in this Agreement to the contrary, the Company shall not have any obligation to pay any amount or provide any benefit, as the case may be, under this Agreement pursuant to Sections 4(d), 4(e) or 5(c), unless the Executive executes, delivers to the Company, and does not revoke (to the extent the Employee is allowed to do so), a general release within fifty-three (53) days of the Executive’s termination of employment with the Company, which shall set forth (i) a release of the Company and its affiliates, in such form as the Company may reasonably request, of all claims against the Company and its affiliates relating to the Executive’s employment and termination thereof, and (ii) an agreement to continue to comply with and be bound by, the provisions of Section 3 hereof.  

9.Payments to Specified Employees.  Notwithstanding any other Section of this Agreement, if the Executive is a “specified employee” as defined in Code Section 409A(a)(2)(b)(i) and Treasury Regulation Section 1.409A-1(i) at the time of the Executive’s separation from service, payments or distributions of property to the Executive provided under this Agreement, to the extent considered amounts deferred under a non-qualified deferred compensation plan (as defined in Code Section 409A), shall be deferred until the six (6) month anniversary of such separation from service to the extent required in order to comply with Code Section 409A and Treasury Regulation Section 1.409A-3(i)(2).  If any payments are required to be delayed pursuant to this Section 9, such payments will be made on the first regularly scheduled payroll date after the six (6) month anniversary of the Executive’s separation from service without interest thereon. 

10.Mitigation.  There shall be no offset against amounts due the Executive under this Agreement on account of any remuneration attributable to any subsequent employment that he may obtain.

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11.Change in Control Excise Tax.  

(a)Notwithstanding anything to the contrary herein, if any portion of any payment or benefit under this Agreement, or under any other agreement with the Executive or plan of the Company or any affiliate (in the aggregate, “Total Payments”) would constitute an “excess parachute payment” and would, but for this Section 11(a), result in the imposition on the Executive of an excise tax under Code Section 4999 (“Excise Tax”), then the Total Payments to be made to the Executive shall either be (i) delivered in full, or (ii) delivered in such amount so that no portion of such Total Payments would be subject to the Excise Tax, whichever of the foregoing results in the receipt by the Executive of the greatest benefit on an after-tax basis (taking into account the applicable federal, state and local income taxes and the Excise Tax).

(b)Within forty (40) days following a separation of service that entitles or may entitle the Executive to the Severance Package or notice by one party to the other of its belief that there is a payment or benefit due the Executive that will result in an excess parachute payment, the Executive and the Company, at the Company’s expense, shall obtain the opinion (which need not be unqualified) of nationally recognized tax counsel (“National Tax Counsel”) selected by the Company’s independent auditors and reasonably acceptable to the Executive (which may be regular outside counsel to the Company), which opinion sets forth (i) the amount of the Base Period Income (as defined below), (ii) the amount and present value of the Total Payments, (iii) the amount and present value of any excess parachute payments determined without regard to any reduction of Total Payments pursuant to Section 11(a) and (iv) the net after-tax proceeds to the Executive, taking into account the tax imposed under Code Section 4999 if (x) the Total Payments were reduced in accordance with Section 11(a) or (y) the Total Payments were not so reduced.  The opinion of National Tax Counsel shall be addressed to the Company and the Executive and shall be binding upon the Company and the Executive.  If such National Tax Counsel opinion determines that Section 11(a)(ii) applies, then the payments and benefits hereunder or any other payments or benefits determined by such counsel to be includable in Total Payments shall be reduced or eliminated so that under the bases of calculations set forth in such opinion there will be no excess parachute payment.  In such event, payments or benefits included in the Total Payments shall be reduced or eliminated by applying the following principles, in order: (1) the payment or benefit with the higher ratio of the parachute payment value to present economic value (determined using reasonable actuarial assumptions) shall be reduced or eliminated before a payment or benefit with a lower ratio; (2) the payment or benefit with the later possible payment date shall be reduced or eliminated before a payment or benefit with an earlier payment date; and (3) cash payments shall be reduced prior to non-cash benefits; provided that if the foregoing order of reduction or elimination would violate Code Section 409A, then the reduction shall be made pro rata among the payments or benefits to be received by the Executive (on the basis of the relative present value of the parachute payments).

(c)For purposes of this Agreement: (A) the terms “excess parachute payment” and “parachute payments” shall have the meanings assigned to them in Code Section 280G and such “parachute payments” shall be valued as provided therein.  Present value for purposes of this Agreement shall be calculated in accordance with Code Section 280G(d)(4); (B) the term “Base Period Income” means an amount equal to the Executive’s “annualized includible compensation for the base period” as defined in Code Section 280G(d)(1); (C) for purposes of 

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the opinion of National Tax Counsel, the value of any noncash benefits or any deferred payment or benefit shall be determined by the Company’s independent auditors in accordance with the principles of Code Sections 280G(d)(3) and (4), which determination shall be evidenced in a certificate of such auditors addressed to the Company and the Executive; and (D) Executive shall be deemed to pay federal income tax and employment taxes at the highest marginal rate of federal income and employment taxation, and state and local income taxes at the highest marginal rate of taxation in the state or locality of Executive’s domicile (determined in both cases in the calendar year in which the separation of service occurs or notice described in Section 11(c) is given, whichever is earlier), net of the maximum reduction in federal income taxes that may be obtained from the deduction of such state and local taxes.

(d)If such National Tax Counsel so requests in connection with the opinion required by this Section 11, the Executive and the Company shall obtain, at the Company’s expense, and the National Tax Counsel may rely on, the advice of a firm of recognized executive compensation consultants as to the reasonableness of any item of compensation to be received by the Executive solely with respect to its status under Code Section 280G.

(e)This Section 11 shall be amended to comply with any amendment or successor provision to Sections 280G or 4999 of the Code.  If such provisions are repealed without successor, then this Section 11 shall be cancelled without further effect.

12.Arbitration; Expenses. 

(a)In the event of any dispute under the provisions of this Agreement, other than a dispute in which the sole relief sought is an equitable remedy such as an injunction, the parties shall be required to have the dispute, controversy or claim settled by arbitration in the City of Los Angeles, California in accordance with the commercial arbitration rules then in effect of the American Arbitration Association, before a panel of three arbitrators, two of whom shall be selected by the Company and the Executive, respectively, and the third of whom shall be selected by the other two arbitrators.  Any award entered by the arbitrators shall be final, binding and non-appealable and judgment may be entered thereon by either party in accordance with applicable law in any court of competent jurisdiction.  This arbitration provision shall be specifically enforceable.  The fees of the American Arbitration Association and the arbitrators and any expenses relating to the conduct of the arbitration (including reasonable attorneys’ fees and expenses) shall be paid as determined by the arbitrators.

(b)In the event of an arbitration or lawsuit by either party to enforce the provisions of this Agreement following a Change in Control, if the Executive prevails on any material issue which is the subject of such arbitration or lawsuit, he shall be entitled to recover from the Company the reasonable costs, expenses and attorneys’ fees he has incurred attributable to such issue. 

13.Notices.  Any notice required to be given hereunder shall be delivered personally, shall be sent by first class mail, postage prepaid, return receipt requested, by overnight courier, or by facsimile, to the respective parties at the addresses given below, which addresses may be changed by the parties by notice conforming to the requirements of this Agreement. 

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If to the Company:
	
Entravision Communications Corporation
Attention: General Counsel 
2425 Olympic Boulevard, Suite 6000 West
Santa Monica, California 90404

	
 
	
 

	
If to the Executive:
	
Walter F. Ulloa 
15304 Sunset Boulevard, Suite 204 
Pacific Palisades, California 90272

 

Any such notice deposited in the mail shall be conclusively deemed delivered to and received by the addressee four (4) days after deposit in the mail, if all of the foregoing conditions of notice shall have been satisfied.  All facsimile communications shall be deemed delivered and received on the date of the facsimile, if (i) the transmittal form showing a successful transmittal is retained by the sender, and (ii) the facsimile communication is followed by mailing a copy thereof to the addressee of the facsimile in accordance with this Section 13.  Any communication sent by overnight courier shall be deemed delivered on the earlier of proof of actual receipt or the first day upon which the overnight courier will guarantee delivery.

14.Contents of Agreement; Amendment and Assignment. 

(a)This Agreement supersedes all prior agreements, including, without limitation, the Prior Agreement, and sets forth the entire understanding between the parties hereto with respect to the subject matter hereof and cannot be changed, modified, extended or terminated except by a written agreement executed by the parties hereto or their respective successors and legal representatives. 

(b)All of the terms and provisions of this Agreement shall be binding upon and inure to the benefit of and be enforceable by the respective heirs, executors, administrators, legal representatives, successors and assigns of the parties hereto, except that the duties and responsibilities of the Executive hereunder are of a personal nature and shall not be assignable or delegable in whole or in part by the Executive. To the extent that Executive was eligible to receive any amounts in respect of Base Salary, Annual Bonus or other compensation under the Prior Agreement that were not received by Executive (other than any Annual Bonus earned with respect to the period ending December 31, 2019 that has not yet been paid), Executive hereby waives the right to receive any such amounts and releases the Company from any obligation to pay any such amounts.

15.Severability.  If any provision of this Agreement or application thereof to anyone or under any circumstances is adjudicated to be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect any other provision or application of this Agreement which can be given effect without the invalid or unenforceable provision or application and shall not invalidate or render unenforceable such provision or application in any other jurisdiction.  If any provision is held void, invalid or unenforceable with respect to particular circumstances, it shall nevertheless remain in full force and effect in all other circumstances. 

16.Remedies Cumulative; No Waiver.  No remedy conferred upon a party by this Agreement is intended to be exclusive of any other remedy, and each and every such remedy shall 

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be cumulative and shall be in addition to any other remedy given hereunder or now or hereafter existing at law or in equity.  No delay or omission by a party in exercising any right, remedy or power hereunder or existing at law or in equity shall be construed as a waiver thereof, and any such right, remedy or power may be exercised by such party from time to time and as often as may be deemed expedient or necessary by such party in its sole discretion. 

17.Beneficiaries; References.  The Executive shall be entitled, to the extent permitted under any applicable law, to select and change a beneficiary or beneficiaries to receive any compensation or benefit payable hereunder following the Executive’s death by giving the Company written notice thereof.  In the event of the Executive’s death or a judicial determination of his incompetence, reference in this Agreement to the Executive shall be deemed, where appropriate, to refer to his beneficiary, estate or other legal representative. 

18.Compliance with Section 409A of the Code.  For purposes of applying the provisions of Section 409A of the Code to this Agreement, each separately identified amount to which the Executive is entitled under this Agreement shall be treated as a separate payment.  In addition, to the extent permissible under Section 409A of the Code, any series of installment payments under this Agreement shall be treated as a right to a series of separate payments.  With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by Section 409A, (i) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, (ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year and (iii) such payments shall be made on or before the last day of Executive’s taxable year following the taxable year in which the expense occurred.  Whenever a payment under this Agreement specifies a payment period with reference to a number of days, the actual date of payment within the specified period shall be within the sole discretion of the Company.

19.Recoupment.  Notwithstanding anything in this Agreement to the contrary, all incentive compensation payments to the Executive hereunder are subject to recoupment by the Company pursuant to the recoupment policy approved by the Board, as it may be amended from time to time or as otherwise may be required by law from time to time hereafter.  

20.Captions.  All section headings and captions used in this Agreement are for convenience only and shall in no way define, limit, extend or interpret the scope of this Agreement or any particular section hereof.

21.Executed Counterparts.  This Agreement may be executed in one or more counterparts, all of which when fully-executed and delivered by all parties hereto and taken together shall constitute a single agreement, binding against each of the parties.  To the maximum extent permitted by law or by any applicable governmental authority, any document may be signed and transmitted by facsimile with the same validity as if it were an ink-signed document.  Each signatory below represents and warrants by his signature that he is duly authorized (on behalf of the respective entity for which such signatory has acted) to execute and deliver this instrument and any other document related to this transaction, thereby fully binding each such respective entity.

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22.Governing Law.  This Agreement shall be governed by and interpreted under the laws of the State of California without giving effect to any conflict of laws provisions. 

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IN WITNESS WHEREOF, the undersigned, intending to be legally bound, have executed this Agreement as of the date first above written. 

		
	
“Company”
	
ENTRAVISION COMMUNICATIONS CORPORATION,
a Delaware corporation

	
 
	
 

	
 
	
 

	
 
	
By: /s/ Mark Boelke

	
 
	
Mark Boelke

	
 
	
General Counsel and Secretary

	
 
	
 

	
 
	
 

	
“Executive”
	
/s/ Walter F. Ulloa

	
 
	
Walter F. UlloaEXHIBIT 4.1

    

  

  

  

  BAY DYNAMICS, INC.

  2016 EQUITY INCENTIVE PLAN

  ADOPTED BY THE BOARD OF DIRECTORS: JUNE 29,
    2016

    APPROVED BY THE STOCKHOLDERS: JUNE 29, 2016

    TERMINATION DATE: JUNE
    28, 2026

  
    
      	1.	
              GENERAL.

            

    

  

  (a)          Successor to and Continuation of Prior Plan. The Plan is intended as the successor to and continuation of the Bay
      Dynamics, Inc. Amended and Restated 2007 Stock Option Plan (the “Prior Plan”). Following the Effective Date, no additional stock
      awards may be granted under the Prior Plan. Any unallocated shares remaining available for issuance pursuant to the exercise of options or issuance or settlement of stock awards not previously granted under the Prior Plan as of 12:01 a.m. Pacific
      Time on the Effective Date (the “Prior Plan’s Available Reserve”) will cease to be available under the Prior Plan at such time and
      will be added to the Share Reserve (as further described in Section 3(a) below) and be then immediately available for issuance pursuant to Stock Awards granted hereunder. In addition, from and after 12:01 a.m. Pacific Time on the Effective Date, all
      outstanding stock awards granted under the Prior Plan will remain subject to the terms of the Prior Plan; provided, however, that any shares subject to
      outstanding stock awards granted under the Prior Plan that (i) expire or terminate for any reason prior to exercise or settlement; (ii) are forfeited, cancelled or otherwise returned to the Company because of the failure to meet a contingency or
      condition required to vest such shares; or (iii) are reacquired, withheld (or not issued) to satisfy a tax withholding obligation in connection with an award or to satisfy the purchase price or exercise price of a stock award (the “Returning Shares”) will immediately be added to the Share Reserve (as further described in Section 3(a) below) as and when such shares
      become Returning Shares, and become available for issuance pursuant to Stock Awards granted hereunder. All Stock Awards granted on or after 12:01 a.m. Pacific Time on the Effective Date will be subject to the terms of this Plan.

  (b)          Eligible Stock Award Recipients. Employees, Directors and Consultants are eligible to receive Stock Awards.

  (c)        Available Stock Awards. The Plan provides for the grant of the following types of Stock Awards: (i) Incentive Stock
      Options, (ii) Nonstatutory Stock Options, (iii) Stock Appreciation Rights, (iv) Restricted Stock Awards, (v) Restricted Stock Unit Awards and (vi) Other Stock Awards.

  (d)          Purpose. The Plan, through the granting of Stock Awards, is intended to help the Company secure and retain the services
      of eligible award recipients, provide incentives for such persons to exert maximum efforts for the success of the Company and any Affiliate and provide a means by which the eligible recipients may benefit from increases in value of the Common Stock.

  
    
      	2.	
              ADMINISTRATION.

            

    

  

  (a)          Administration by Board. The Board will administer the Plan. The Board may delegate administration of the Plan to a
      Committee or Committees, as provided in Section 2(c).

  (b)          Powers of Board. The Board will have the power, subject to, and within the limitations of, the express provisions of
      the Plan:

  

  

  

  

  
    
      

      

    

    
      

    
      

      

    

  

  

  

  (i)          To determine (A) who will be granted Stock Awards; (B) when and how each Stock Award will be granted; (C) what type of Stock Award will be granted; (D) the provisions of each Stock Award (which need not be
      identical), including when a person will be permitted to exercise or otherwise receive cash or Common Stock under the Stock Award; (E) the number of shares of Common Stock subject to a Stock Award; and (F) the Fair Market Value applicable to a Stock
      Award.

  (ii)          To construe and interpret the Plan and Stock Awards granted under it, and to establish, amend and revoke rules and regulations for administration of the Plan and Stock Awards. The Board, in the exercise of these
      powers, may correct any defect, omission or inconsistency in the Plan or in any Stock Award Agreement, in a manner and to the extent it will deem necessary or expedient to make the Plan or Stock Award fully effective.

  (iii)          To settle all controversies regarding the Plan and Stock Awards granted under it.

  (iv)          To accelerate, in whole or in part, the time at which a Stock Award may be exercised or vest (or at which cash or shares of Common Stock may be issued).

  (v)          To suspend or terminate the Plan at any time. Except as otherwise provided in the Plan or a Stock Award Agreement, suspension or termination of the Plan will not impair a Participant’s rights under his or her
      then-outstanding Stock Award without his or her written consent except as provided in subsection (viii) below.

  (vi)          To amend the Plan in any respect the Board deems necessary or advisable, including, without limitation, by adopting amendments relating to Incentive Stock Options and certain nonqualified deferred compensation under
      Section 409A of the Code and/or to make the Plan or Stock Awards granted under the Plan compliant with the requirements for Incentive Stock Options or exempt from or compliant with the requirements for nonqualified deferred compensation under Section
      409A of the Code, subject to the limitations, if any, of applicable law. However, if required by applicable law, and except as provided in Section 9(a) relating to Capitalization Adjustments, the Company will seek stockholder approval of any
      amendment of the Plan that (A) materially increases the number of shares of Common Stock available for issuance under the Plan, (B) materially expands the class of individuals eligible to receive Stock Awards under the Plan, (C) materially increases
      the benefits accruing to Participants under the Plan, (D) materially reduces the price at which shares of Common Stock may be issued or purchased under the Plan, (E) materially extends the term of the Plan, or (F) materially expands the types of
      Stock Awards available for issuance under the Plan. Except as provided in the Plan (including subsection (viii) below) or a Stock Award Agreement, no amendment of the Plan will impair a Participant’s rights under an outstanding Stock Award unless (1)
      the Company requests the consent of the affected Participant, and (2) such Participant consents in writing.

  (vii)          To submit any amendment to the Plan for stockholder approval, including, but not limited to, amendments to the Plan intended to satisfy the requirements of Section 422 of the Code regarding Incentive Stock Options.

  (viii)          To approve forms of Stock Award Agreements for use under the Plan and to amend the terms of any one or more Stock Awards, including, but not limited to, amendments to provide terms more favorable to the Participant
      than previously provided in the Stock Award Agreement, subject to any specified limits in the Plan that are not subject to Board discretion; provided however,
      that a Participant’s rights under any Stock Award will not be impaired by any such amendment unless (A) the Company requests the consent of the affected Participant, and (B) such Participant consents in writing.

  

  

  

  

  
    
      

      

    

    
      

    
      

      

    

  

  

  

  Notwithstanding the foregoing, (1) a Participant’s rights will not be deemed to have been impaired by any such amendment if the
    Board, in its sole discretion, determines that the amendment, taken as a whole, does not materially impair the Participant’s rights, and (2) subject to the limitations of applicable law, if any, the Board may amend the terms of any one or more Stock
    Awards without the affected Participant’s consent (A) to maintain the qualified status of the Stock Award as an Incentive Stock Option under Section 422 of the Code; (B) to change the terms of an Incentive Stock Option, if such change results in
    impairment of the Award solely because it impairs the qualified status of the Award as an Incentive Stock Option under Section 422 of the Code; (C) to clarify the manner of exemption from, or to bring the Stock Award into compliance with, Section 409A
    of the Code; or (D) to comply with other applicable laws.

  (ix)          Generally, to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the best interests of the Company and that are not in conflict with the provisions of the Plan or Stock
      Awards.

  (x)          To adopt such procedures and sub-plans as are necessary or appropriate to permit participation in the Plan by Employees, Directors or Consultants who are foreign nationals or employed outside the United States
      (provided that Board approval will not be necessary for immaterial modifications to the Plan or any Stock Award Agreement that are required for compliance with the laws of the relevant foreign jurisdiction).

  (xi)          To effect, with the consent of any adversely affected Participant, (A) the reduction of the exercise, purchase or strike price of any outstanding Stock Award; (B) the cancellation of any outstanding Stock Award and
      the grant in substitution therefor of (1) a new Stock Award, (2) cash and/or (3) other valuable consideration determined by the Board, in its sole discretion, with any such substituted award (x) covering the same or a different number of shares of
      Common Stock as the cancelled Stock Award and (y) granted under the Plan or another equity or compensatory plan of the Company; or (C) any other action that is treated as a repricing under generally accepted accounting principles.

  (c)          Delegation to Committee. The Board may delegate some or all of the administration of the Plan to a Committee or
      Committees. If administration of the Plan is delegated to a Committee, the Committee will have, in connection with the administration of the Plan, the powers theretofore possessed by the Board that have been delegated to the Committee, including the
      power to delegate to a subcommittee of the Committee any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board will thereafter be to the Committee or subcommittee). Any delegation of
      administrative powers will be reflected in resolutions, not inconsistent with the provisions of the Plan, adopted from time to time by the Board or Committee (as applicable). The Committee may, at any time, abolish the subcommittee and/or revest in
      the Committee any powers delegated to the subcommittee. The Board may retain the authority to concurrently administer the Plan with the Committee and may, at any time, revest in the Board some or all of the powers previously delegated.

  (d)          Delegation to an Officer. The Board may delegate to one or more Officers the authority to do one or both of the
      following: (i) designate Employees who are not Officers to be recipients of Options and SARs (and, to the extent permitted by applicable law, other Stock Awards) and, to the extent permitted by applicable law, the terms of such Stock Awards, and (ii)
      determine the number of shares of Common Stock to be subject to such Stock Awards granted to such Employees; provided, however, that the Board resolutions regarding such delegation will specify the total number of shares of Common Stock that may be
      subject to the Stock Awards granted by such Officer and that such Officer may not grant a Stock Award to himself or herself. Any such Stock Awards will be granted on the form of Stock Award Agreement most recently approved for use by the Committee or
      the Board, unless otherwise provided in the resolutions

  

  

  
    
      

      

    

    
      

    
      

      

    

  

  

  

  approving the delegation authority. The Board may not delegate authority to an Officer who is acting solely in the capacity of
    an Officer (and not also as a Director) to determine the Fair Market Value pursuant to Section 13(u) below.

  (e)          Effect of Board’s Decision. All determinations, interpretations and constructions made by the Board in good faith will
      not be subject to review by any person and will be final, binding and conclusive on all persons.

  (f)          Arbitration. Any dispute or claim concerning any Stock Awards granted (or not granted) or any disputes or claims
      relating to or arising out of the Plan will be fully, finally and exclusively resolved by binding and confidential arbitration conducted pursuant to the rules of Judicial Arbitration and Mediation Services, Inc. in San Francisco, California. The
      Company will pay all arbitration fees. In addition to any other relief, the arbitrator may award to the prevailing party recovery of its attorneys’ fees and costs. By accepting a Stock Award, Participants and the Company waive their respective rights
      to have any such disputes or claims tried by a judge or jury.

  
    
      	3.	
              SHARES SUBJECT TO THE PLAN.

            

    

  

  
    
      	

            	(a)	
              Share Reserve.

            

    

  

  (i)          Subject to Section 9(a) relating to Capitalization Adjustments, the aggregate number of shares of Common Stock that may be issued pursuant to Stock Awards from and after the Effective Date will not exceed (A)
      5,881,121 shares, which number is the sum of (i) the number of shares subject to the Prior Plan’s Available Reserve, which is a total of 1,327,127 shares, and (ii) an additional 4,553,994 new shares; plus (B) the Returning Shares, if any, which
      become available for grant under this Plan from time to time (such aggregate number of shares described in (A) and (B) above, the “Share
        Reserve”).

  (ii)          For clarity, the Share Reserve in this Section 3(a) is a limitation on the number of shares of Common Stock that may be issued pursuant to the Plan. Accordingly, this Section 3(a) does not limit the granting of Stock
      Awards except as provided in Section 7(a).

  (b)          Reversion of Shares to the Share Reserve. If a Stock Award or any portion thereof (i) expires or otherwise terminates
      without all of the shares covered by such Stock Award having been issued or (ii) is settled in cash (i.e., the Participant receives cash rather than
      stock), such expiration, termination or settlement will not reduce (or otherwise offset) the number of shares of Common Stock that may be available for issuance under the Plan. If any shares of Common Stock issued pursuant to a Stock Award are
      forfeited back to or repurchased by the Company because of the failure to meet a contingency or condition required to vest such shares in the Participant, then the shares that are forfeited or repurchased will revert to and again become available for
      issuance under the Plan. Any shares reacquired by the Company in satisfaction of tax withholding obligations on a Stock Award or as consideration for the exercise or purchase price of a Stock Award will again become available for issuance under the
      Plan.

  (c)          Incentive Stock Option Limit. Subject to the Share Reserve and Section 9(a) relating to Capitalization Adjustments, the
      aggregate maximum number of shares of Common Stock that may be issued pursuant to the exercise of Incentive Stock Options will be 26,000,000 shares of Common Stock.

  

  

  
    
      

      

    

    
      

    
      

      

    

  

  

  

  (d)          Source of Shares. The stock issuable under the Plan will be shares of authorized but unissued or reacquired Common
      Stock, including shares repurchased by the Company on the open market or otherwise.

  
    
      	4.	
              ELIGIBILITY.

            

    

  

  (a)          Eligibility for Specific Stock Awards. Incentive Stock Options may be granted only to employees of the Company or a
      “parent corporation” or “subsidiary corporation” thereof (as such terms are defined in Sections 424(e) and 424(f) of the Code). Stock Awards other than Incentive Stock Options may be granted to Employees, Directors and Consultants; provided, however, that Stock Awards may not be granted to Employees, Directors and Consultants who are providing Continuous Service only to any “parent” of
      the Company, as such term is defined in Rule 405, unless (i) the stock underlying such Stock Awards is treated as “service recipient stock” under Section 409A of the Code (for example, because the Stock Awards are granted pursuant to a corporate
      transaction such as a spin off transaction), or (ii) the Company, in consultation with its legal counsel, has determined that such Stock Awards are otherwise exempt from or alternatively comply with the distribution requirements of Section 409A of
      the Code.

  (b)          Ten Percent Stockholders. A Ten Percent Stockholder will not be granted an Incentive Stock Option unless the exercise
      price of such Option is at least 110% of the Fair Market Value on the date of grant and the Option is not exercisable after the expiration of five years from the date of grant.

  (c)          Consultants. A Consultant will not be eligible for the grant of a Stock Award if, at the time of grant, either the
      offer or sale of the Company’s securities to such Consultant is not exempt under Rule 701 because of the nature of the services that the Consultant is providing to the Company, because the Consultant is not a natural person, or because of any other
      provision of Rule 701, unless the Company determines that such grant need not comply with the requirements of Rule 701 and will satisfy another exemption under the Securities Act as well as comply with the securities laws of all other relevant
      jurisdictions.

  
    
      	5.	
              PROVISIONS RELATING TO OPTIONS AND STOCK APPRECIATION RIGHTS.

            

    

  

  Each Option or SAR will be in such form and will contain such terms and conditions as the Board deems
    appropriate. All Options will be separately designated Incentive Stock Options or Nonstatutory Stock Options at the time of grant, and, if certificates are issued, a separate certificate or certificates will be issued for shares of Common Stock
    purchased on exercise of each type of Option. If an Option is not specifically designated as an Incentive Stock Option, or if an Option is designated as an Incentive Stock Option but some portion or all of the Option fails to qualify as an Incentive
    Stock Option under the applicable rules, then the Option (or portion thereof) will be a Nonstatutory Stock Option. The provisions of separate Options or SARs need not be identical; provided, however, that each Stock Award Agreement will conform to (through incorporation of provisions hereof by reference in the applicable Stock Award Agreement or otherwise) the substance of each of the following
    provisions:

  (a)          Term. Subject to the provisions of Section 4(b) regarding Ten Percent Stockholders, no Option or SAR will be
      exercisable after the expiration of ten years from the date of its grant or such shorter period specified in the Stock Award Agreement.

  (b)          Exercise Price. Subject to the provisions of Section 4(b) regarding Ten Percent Stockholders, the exercise or strike
      price of each Option or SAR will be not less than 100% of the Fair Market Value of the Common Stock subject to the Option or SAR on the date the Stock Award is granted.

  

  

  
    
      

      

    

    
      

    
      

      

    

  

  

  

  Notwithstanding the foregoing, an Option or SAR may be granted with an exercise or strike price lower than 100% of the Fair
    Market Value of the Common Stock subject to the Stock Award if such Stock Award is granted pursuant to an assumption of or substitution for another option or stock appreciation right pursuant to a Corporate Transaction and in a manner consistent with
    the provisions of Section 409A of the Code and, if applicable, Section 424(a) of the Code. Each SAR will be denominated in shares of Common Stock equivalents.

  (c)          Purchase Price for Options. The purchase price
        of Common Stock acquired pursuant to the exercise of an Option may be paid, to the extent permitted by applicable law and as determined by the Board in its sole discretion, by any combination of the methods of payment set forth below. The Board
        will have the authority to grant Options that do not permit all of the following methods of payment (or otherwise restrict the ability to use certain methods) and to grant Options that require the consent of the Company to use a particular method
        of payment. The permitted methods of payment are as follows:

  (i)          by cash, check, bank draft or money order payable to the Company;

  (ii)          pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board that, prior to the issuance of the stock subject to the Option, results in either the receipt of cash (or check) by the
      Company or the receipt of irrevocable instructions to pay the aggregate exercise price to the Company from the sales proceeds;

  (iii)          by delivery to the Company (either by actual delivery or attestation) of shares of Common Stock;

  (iv)          if an Option is a Nonstatutory Stock Option, by a “net exercise” arrangement pursuant to which the Company will reduce the number of shares of Common Stock issuable upon exercise by the largest whole number of shares
      with a Fair Market Value that does not exceed the aggregate exercise price; provided, however, that the Company will accept a cash or other payment from the Participant to the extent of any remaining balance of the aggregate exercise price not
      satisfied by such reduction in the number of whole shares to be issued. Shares of Common Stock will no longer be subject to an Option and will not be exercisable thereafter to the extent that (A) shares issuable upon exercise are used to pay the
      exercise price pursuant to the “net exercise,” (B) shares are delivered to the Participant as a result of such exercise, and (C) shares are withheld to satisfy tax withholding obligations;

  (v)          according to a deferred payment or similar arrangement with the Optionholder; provided, however, that interest will
      compound at least annually and will be charged at the minimum rate of interest necessary to avoid (A) the imputation of interest income to the Company and compensation income to the Optionholder under any applicable provisions of the Code, and (B)
      the classification of the Option as a liability for financial accounting purposes; or

  (vi)          in any other form of legal consideration that may be acceptable to the Board and specified in the applicable Stock Award Agreement.

  (d)        Exercise and Payment of a SAR. To exercise any outstanding SAR, the Participant must provide written notice of exercise
      to the Company in compliance with the provisions of the Stock Award Agreement evidencing such SAR. The appreciation distribution payable on the exercise of a SAR will be not greater than an amount equal to the excess of (A) the aggregate Fair Market
      Value (on the date of the exercise of the SAR) of a number of shares of Common Stock equal to the number of Common Stock equivalents in which the Participant is vested under such SAR, and with respect to which the Participant is

  

  

  
    
      

      

    

    
      

    
      

      

    

  

  

  

  exercising the SAR on such date, over (B) the aggregate strike price of the number of Common Stock equivalents with respect to
    which the Participant is exercising the SAR on such date. The appreciation distribution may be paid in Common Stock, in cash, in any combination of the two or in any other form of consideration, as determined by the Board and contained in the Stock
    Award Agreement evidencing such SAR.

  (e)          Transferability of Options and SARs. The Board
        may, in its sole discretion, impose such limitations on the transferability of Options and SARs as the Board will determine. In the absence of such a determination by the Board to the contrary, the following restrictions on the transferability of
        Options and SARs will apply:

  (i)          Restrictions on Transfer. An Option or SAR will not be transferable except by will or by the laws of descent and
      distribution (and pursuant to subsections (ii) and (iii) below), and will be exercisable during the lifetime of the Participant only by the Participant. The Board may permit transfer of the Option or SAR in a manner that is not prohibited by
      applicable tax and securities laws. Except as explicitly provided herein, neither an Option nor a SAR may be transferred for consideration.

  (ii)          Domestic Relations Orders. Subject to the approval of the Board or a duly authorized Officer, an Option or SAR may be
      transferred pursuant to the terms of a domestic relations order, official marital settlement agreement or other divorce or separation instrument as permitted by Treasury Regulation 1.421-1(b)(2). If an Option is an Incentive Stock Option, such Option
      may be deemed to be a Nonstatutory Stock Option as a result of such transfer.

  (iii)          Beneficiary Designation. Subject to the approval of the Board or a duly authorized Officer, a Participant may, by
      delivering written notice to the Company, in a form approved by the Company (or the designated broker), designate a third party who, upon the death of the Participant, will thereafter be entitled to exercise the Option or SAR and receive the Common
      Stock or other consideration resulting from such exercise. In the absence of such a designation, upon the death of the Participant, the executor or administrator of the Participant’s estate will be entitled to exercise the Option or SAR and receive
      the Common Stock or other consideration resulting from such exercise. However, the Company may prohibit designation of a beneficiary at any time, including due to any conclusion by the Company that such designation would be inconsistent with the
      provisions of applicable laws.

  (f)          Vesting Generally. The total number of shares
        of Common Stock subject to an Option or SAR may vest and become exercisable in periodic installments that may or may not be equal. The Option or SAR may be subject to such other terms and conditions on the time or times when it may or may not be
        exercised (which may be based on the satisfaction of performance goals or other criteria) as the Board may deem appropriate. The vesting provisions of individual Options or SARs may vary. The provisions of this Section 5(f) are subject to any
        Option or SAR provisions governing the minimum number of shares of Common Stock as to which an Option or SAR may be exercised.

  (g)          Termination of Continuous Service. Except as otherwise provided in the applicable Stock Award Agreement or other
      agreement between the Participant and the Company, if a Participant’s Continuous Service terminates (other than for Cause and other than upon the Participant’s death or Disability), the Participant may exercise his or her Option or SAR (to the extent
      that the Participant was entitled to exercise such Stock Award as of the date of termination of Continuous Service) within the period of time ending on the earlier of (i) the date three months following the termination of the Participant’s Continuous
      Service (or such longer or shorter period specified in the applicable Stock Award Agreement, which period will not be less than 30 days if necessary to comply with applicable laws unless such

  

  

  
    
      

      

    

    
      

    
      

      

    

  

  

  

  termination is for Cause) and (ii) the expiration of the term of the Option or SAR as set forth in the Stock Award Agreement. If,
    after termination of Continuous Service, the Participant does not exercise his or her Option or SAR within the applicable time frame, the Option or SAR (as applicable) will terminate.

  (h)          Extension of Termination Date. Except as otherwise provided in the applicable Stock Award Agreement or other agreement
      between the Participant and the Company, if the exercise of an Option or SAR following the termination of the Participant’s Continuous Service (other than for Cause and other than upon the Participant’s death or Disability) would be prohibited at any
      time solely because the issuance of shares of Common Stock would violate the registration requirements under the Securities Act, then the Option or SAR will terminate on the earlier of (i) the expiration of a total period of time (that need not be
      consecutive) equal to the applicable post termination exercise period after the termination of the Participant’s Continuous Service during which the exercise of the Option or SAR would not be in violation of such registration requirements, or (ii)
      the expiration of the term of the Option or SAR as set forth in the applicable Stock Award Agreement. In addition, unless otherwise provided in a Participant’s Stock Award Agreement, if the sale of any Common Stock received upon exercise of an Option
      or SAR following the termination of the Participant’s Continuous Service (other than for Cause) would violate the Company’s insider trading policy, then the Option or SAR will terminate on the earlier of (i) the expiration of a period of time (that
      need not be consecutive) equal to the applicable post-termination exercise period after the termination of the Participant’s Continuous Service during which the sale of the Common Stock received upon exercise of the Option or SAR would not be in
      violation of the Company’s insider trading policy, or (ii) the expiration of the term of the Option or SAR as set forth in the applicable Stock Award Agreement.

  (i)          Disability of Participant. Except as otherwise provided in the applicable Stock Award Agreement or other agreement
      between the Participant and the Company, if a Participant’s Continuous Service terminates as a result of the Participant’s Disability, the Participant may exercise his or her Option or SAR (to the extent that the Participant was entitled to exercise
      such Option or SAR as of the date of termination of Continuous Service), but only within such period of time ending on the earlier of (i) the date 12 months following such termination of Continuous Service (or such longer or shorter period specified
      in the Stock Award Agreement, which period will not be less than six months if necessary to comply with applicable laws), and (ii) the expiration of the term of the Option or SAR as set forth in the Stock Award Agreement. If, after termination of
      Continuous Service, the Participant does not exercise his or her Option or SAR within the applicable time frame, the Option or SAR (as applicable) will terminate.

  (j)          Death of Participant. Except as otherwise provided in the applicable Stock Award Agreement or other agreement between
      the Participant and the Company, if (i) a Participant’s Continuous Service terminates as a result of the Participant’s death, or (ii) the Participant dies within the period (if any) specified in the Stock Award Agreement for exercisability after the
      termination of the Participant’s Continuous Service (for a reason other than death), then the Option or SAR may be exercised (to the extent the Participant was entitled to exercise such Option or SAR as of the date of death) by the Participant’s
      estate, by a person who acquired the right to exercise the Option or SAR by bequest or inheritance or by a person designated to exercise the Option or SAR upon the Participant’s death, but only within the period ending on the earlier of (i) the date
      18 months following the date of death (or such longer or shorter period specified in the Stock Award Agreement, which period will not be less than six months if necessary to comply with applicable laws), and (ii) the expiration of the term of such
      Option or SAR as set forth in the Stock Award Agreement. If, after the Participant’s death, the Option or SAR is not exercised within the applicable time frame, the Option or SAR (as applicable) will terminate.

  (k)          Termination for Cause. Except as explicitly provided otherwise in a Participant’s Stock Award Agreement or other
      individual written agreement between the Company or any Affiliate and the

  

  

  
    
      

      

    

    
      

    
      

      

    

  

  

  

  Participant, if a Participant’s Continuous Service is terminated for Cause, the Option or SAR will terminate immediately upon
    such Participant’s termination of Continuous Service, and the Participant will be prohibited from exercising his or her Option or SAR from and after the time of such termination of Continuous Service.

  (l)           Non-Exempt Employees. If an Option or SAR is granted to an Employee who is a non-exempt employee for purposes of the
      Fair Labor Standards Act of 1938, as amended, the Option or SAR will not be first exercisable for any shares of Common Stock until at least six months following the date of grant of the Option or SAR (although the Stock Award may vest prior to such
      date). Consistent with the provisions of the Worker Economic Opportunity Act, (i) if such non-exempt Employee dies or suffers a Disability, (ii) upon a Corporate Transaction in which such Option or SAR is not assumed, continued, or substituted, (iii)
      upon a Change in Control, or (iv) upon the Participant’s retirement (as such term may be defined in the Participant’s Stock Award Agreement, in another agreement between the Participant and the Company, or, if no such definition, in accordance with
      the Company's then current employment policies and guidelines), the vested portion of any Options and SARs may be exercised earlier than six months following the date of grant. The foregoing provision is intended to operate so that any income derived
      by a non-exempt employee in connection with the exercise or vesting of an Option or SAR will be exempt from his or her regular rate of pay. To the extent permitted and/or required for compliance with the Worker Economic Opportunity Act to ensure that
      any income derived by a non-exempt employee in connection with the exercise, vesting or issuance of any shares under any other Stock Award will be exempt from the employee’s regular rate of pay, the provisions of this Section 5(l) will apply to all
      Stock Awards and are hereby incorporated by reference into such Stock Award Agreements.

  (m)         Early Exercise of Options. An Option may, but need not, include a provision whereby the Optionholder may elect at any
      time before the Optionholder’s Continuous Service terminates to exercise the Option as to any part or all of the shares of Common Stock subject to the Option prior to the full vesting of the Option. Subject to the “Repurchase Limitation” in Section
      8(l), any unvested shares of Common Stock so purchased may be subject to a repurchase right in favor of the Company or to any other restriction the Board determines to be appropriate. Provided that the “Repurchase Limitation” in Section 8(l) is not
      violated, the Company will not be required to exercise its repurchase right until at least six months (or such longer or shorter period of time required to avoid classification of the Option as a liability for financial accounting purposes) have
      elapsed following exercise of the Option unless the Board otherwise specifically provides in the Option Agreement.

  (n)          Right of Repurchase. Subject to the “Repurchase Limitation” in Section 8(l), the Option or SAR may include a provision
      whereby the Company may elect to repurchase all or any part of the vested shares of Common Stock acquired by the Participant pursuant to the exercise of the Option or SAR.

  (o)          Right of First Refusal. The Option or SAR may include a provision whereby the Company may elect to exercise a right of
      first refusal following receipt of notice from the Participant of the intent to transfer all or any part of the shares of Common Stock received upon the exercise of the Option or SAR. Such right of first refusal will be subject to the “Repurchase
      Limitation” in Section 8(l). Except as expressly provided in this Section 5(o) or in the Stock Award Agreement, such right of first refusal will otherwise comply with any applicable provisions of the bylaws of the Company.

  
    
      	6.	
              PROVISIONS OF STOCK AWARDS OTHER THAN OPTIONS AND SARS.

            

    

  

  (a)          Restricted Stock Awards. Each Restricted Stock Award Agreement will be in such form and will contain such terms and
      conditions as the Board deems appropriate. To the extent consistent with

  

  

  
    
      

      

    

    
      

    
      

      

    

  

  

  

  the Company’s bylaws, at the Board’s election, shares of Common Stock underlying a Restricted Stock Award may be (i) held in book
    entry form subject to the Company’s instructions until any restrictions relating to the Restricted Stock Award lapse; or (ii) evidenced by a certificate, which certificate will be held in such form and manner as determined by the Board. The terms and
    conditions of Restricted Stock Award Agreements may change from time to time, and the terms and conditions of separate Restricted Stock Award Agreements need not be identical. Each Restricted Stock Award Agreement will conform to (through incorporation
    of the provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions:

  (i)          Consideration. A Restricted Stock Award may be awarded in consideration for (A) cash, check, bank draft or money order
      payable to the Company, (B) past services to the Company or an Affiliate, or (C) any other form of legal consideration (including future services) that may be acceptable to the Board, in its sole discretion, and permissible under applicable law.

  (ii)          Vesting. Subject to the “Repurchase Limitation” in Section 8(l), shares of Common Stock awarded under the Restricted
      Stock Award Agreement may be subject to forfeiture to the Company in accordance with a vesting schedule to be determined by the Board.

  (iii)          Termination of Participant’s Continuous Service. If a Participant’s Continuous Service terminates, the Company may
      receive through a forfeiture condition or a repurchase right, any or all of the shares of Common Stock held by the Participant as of the date of termination of Continuous Service under the terms of the Restricted Stock Award Agreement.

  (iv)          Transferability. Rights to acquire shares of Common Stock under the Restricted Stock Award Agreement will be
      transferable by the Participant only upon such terms and conditions as are set forth in the Restricted Stock Award Agreement, as the Board will determine in its sole discretion, so long as Common Stock awarded under the Restricted Stock Award
      Agreement remains subject to the terms of the Restricted Stock Award Agreement.

  (v)          Dividends. A Restricted Stock Award Agreement may provide that any dividends paid on Restricted Stock will be subject
      to the same vesting and forfeiture restrictions as apply to the shares subject to the Restricted Stock Award to which they relate.

  (b)          Restricted Stock Unit Awards. Each Restricted Stock Unit Award Agreement will be in such form and will contain such
      terms and conditions as the Board deems appropriate. The terms and conditions of Restricted Stock Unit Award Agreements may change from time to time, and the terms and conditions of separate Restricted Stock Unit Award Agreements need not be
      identical. Each Restricted Stock Unit Award Agreement will conform to (through incorporation of the provisions hereof by reference in the Agreement or otherwise) the substance of each of the following provisions:

  (i)          Consideration. At the time of grant of a Restricted Stock Unit Award, the Board will determine the consideration, if
      any, to be paid by the Participant upon delivery of each share of Common Stock subject to the Restricted Stock Unit Award. The consideration to be paid (if any) by the Participant for each share of Common Stock subject to a Restricted Stock Unit
      Award may be paid in any form of legal consideration that may be acceptable to the Board, in its sole discretion, and permissible under applicable law.

  

  

  
    
      

      

    

    
      

    
      

      

    

  

  

  

  (ii)          Vesting. At the time of the grant of a Restricted Stock Unit Award, the Board may impose such restrictions on or
      conditions to the vesting of the Restricted Stock Unit Award as it, in its sole discretion, deems appropriate.

  (iii)          Payment. A Restricted Stock Unit Award may be settled by the delivery of shares of Common Stock, their cash equivalent,
      any combination thereof or in any other form of consideration, as determined by the Board and contained in the Restricted Stock Unit Award Agreement.

  (iv)          Additional Restrictions. At the time of the grant of a Restricted Stock Unit Award, the Board, as it deems appropriate,
      may impose such restrictions or conditions that delay the delivery of the shares of Common Stock (or their cash equivalent) subject to a Restricted Stock Unit Award to a time after the vesting of such Restricted Stock Unit Award.

  (v)          Dividend Equivalents. Dividend equivalents may be credited in respect of shares of Common Stock covered by a Restricted
      Stock Unit Award, as determined by the Board and contained in the Restricted Stock Unit Award Agreement. At the sole discretion of the Board, such dividend equivalents may be converted into additional shares of Common Stock covered by the Restricted
      Stock Unit Award in such manner as determined by the Board. Any additional shares covered by the Restricted Stock Unit Award credited by reason of such dividend equivalents will be subject to all of the same terms and conditions of the underlying
      Restricted Stock Unit Award Agreement to which they relate.

  (vi)          Termination of Participant’s Continuous Service. Except as otherwise provided in the applicable Restricted Stock Unit
      Award Agreement, such portion of the Restricted Stock Unit Award that has not vested will be forfeited upon the Participant’s termination of Continuous Service.

  (vii)          Compliance with Section 409A of the Code. Notwithstanding anything to the contrary set forth herein, any Restricted
      Stock Unit Award granted under the Plan that is not exempt from the requirements of Section 409A of the Code shall contain such provisions so that such Restricted Stock Unit Award will comply with the requirements of Section 409A of the Code. Such
      restrictions, if any, shall be determined by the Board and contained in the Restricted Stock Unit Award Agreement evidencing such Restricted Stock Unit Award. For example, such restrictions may include, without limitation, a requirement that any
      Common Stock that is to be issued in a year following the year in which the Restricted Stock Unit Award vests must be issued in accordance with a fixed pre-determined schedule.

  (c)          Other Stock Awards. Other forms of Stock Awards valued in whole or in part by reference to, or otherwise based on,
      Common Stock, including the appreciation in value thereof (e.g., options or stock rights with an exercise price or strike price less than 100% of the Fair Market Value of the Common Stock at the time of grant) may be granted either alone or in
      addition to Stock Awards provided for under Section 5 and the preceding provisions of this Section 6. Subject to the provisions of the Plan, the Board will have sole and complete authority to determine the persons to whom and the time or times at
      which such Other Stock Awards will be granted, the number of shares of Common Stock (or the cash equivalent thereof) to be granted pursuant to such Other Stock Awards and all other terms and conditions of such Other Stock Awards.

  7.          COVENANTS OF THE COMPANY.

  (a)          Availability of Shares. The Company will keep available at all times the number of shares of Common Stock reasonably
      required to satisfy then-outstanding Stock Awards.

  

  

  
    
      

      

    

    
      

    
      

      

    

  

  

  

  (b)          Securities Law Compliance. The Company will seek to obtain from each regulatory commission or agency having
      jurisdiction over the Plan such authority as may be required to grant Stock Awards and to issue and sell shares of Common Stock upon exercise of the Stock Awards; provided, however, that this undertaking will not require the Company to register under the Securities Act the Plan, any Stock Award or any Common Stock issued or issuable pursuant to any such Stock Award. If, after reasonable
      efforts and at a reasonable cost, the Company is unable to obtain from any such regulatory commission or agency the authority that counsel for the Company deems necessary for the lawful issuance and sale of Common Stock under the Plan, the Company
      will be relieved from any liability for failure to issue and sell Common Stock upon exercise of such Stock Awards unless and until such authority is obtained. A Participant will not be eligible for the grant of a Stock Award or the subsequent
      issuance of cash or Common Stock pursuant to the Stock Award if such grant or issuance would be in violation of any applicable securities law.

  (c)          No Obligation to Notify or Minimize Taxes. The Company will have no duty or obligation to any Participant to advise
      such holder as to the time or manner of exercising such Stock Award. Furthermore, the Company will have no duty or obligation to warn or otherwise advise such holder of a pending termination or expiration of a Stock Award or a possible period in
      which the Stock Award may not be exercised. The Company has no duty or obligation to minimize the tax consequences of a Stock Award to the holder of such Stock Award.

  8.          MISCELLANEOUS.

  (a)          Use of Proceeds from Sales of Common Stock. Proceeds from the sale of shares of Common Stock pursuant to Stock Awards
      will constitute general funds of the Company.

  (b)         Corporate Action Constituting Grant of Stock Awards. Corporate action constituting a grant by the Company of a Stock
      Award to any Participant will be deemed completed as of the date of such corporate action, unless otherwise determined by the Board, regardless of when the instrument, certificate, or letter evidencing the Stock Award is communicated to, or actually
      received or accepted by, the Participant. In the event that the corporate records (e.g., Board consents, resolutions or minutes) documenting the corporate action constituting the grant contain terms (e.g., exercise price, vesting schedule or number
      of shares) that are inconsistent with those in the Stock Award Agreement as a result of a clerical error in the papering of the Stock Award Agreement, the corporate records will control and the Participant will have no legally binding right to the
      incorrect term in the Stock Award Agreement.

  (c)          Stockholder Rights. No Participant will be deemed to be the holder of, or to have any of the rights of a holder with
      respect to, any shares of Common Stock subject to a Stock Award unless and until (i) such Participant has satisfied all requirements for exercise of, or the issuance of shares of Common Stock under, the Stock Award pursuant to its terms, and (ii) the
      issuance of the Common Stock subject to the Stock Award has been entered into the books and records of the Company.

  (d)          No Employment or Other Service Rights. Nothing in the Plan, any Stock Award Agreement or any other instrument executed
      thereunder or in connection with any Stock Award granted pursuant thereto will confer upon any Participant any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the Stock Award was granted or will affect the
      right of the Company or an Affiliate to terminate (i) the employment of an Employee with or without notice and with or without cause, (ii) the service of a Consultant pursuant to the terms of such Consultant’s agreement with the Company or an
      Affiliate, or (iii) the service of a Director pursuant to the bylaws of the Company or an

  

  

  
    
      

      

    

    
      

    
      

      

    

  

  

  

  Affiliate, and any applicable provisions of the corporate law of the state in which the Company or the Affiliate is incorporated,
    as the case may be.

  (e)          Change in Time Commitment. In the event a Participant’s regular level of time commitment in the performance of his or
      her services for the Company and any Affiliates is reduced (for example, and without limitation, if the Participant is an Employee of the Company and the Employee has a change in status from a full-time Employee to a part-time Employee) after the
      date of grant of any Stock Award to the Participant, the Board has the right in its sole discretion to (x) make a corresponding reduction in the number of shares subject to any portion of such Stock Award that is scheduled to vest or become payable
      after the date of such change in time commitment, and (y) in lieu of or in combination with such a reduction, extend the vesting or payment schedule applicable to such Stock Award. In the event of any such reduction, the Participant will have no
      right with respect to any portion of the Stock Award that is so reduced or extended.

  (f)            Incentive Stock Option Limitations. To the extent that the aggregate Fair Market Value (determined at the time of
      grant) of Common Stock with respect to which Incentive Stock Options are exercisable for the first time by any Optionholder during any calendar year (under all plans of the Company and any Affiliates) exceeds $100,000 (or such other limit established
      in the Code) or otherwise does not comply with the rules governing Incentive Stock Options, the Options or portions thereof that exceed such limit (according to the order in which they were granted) or otherwise do not comply with such rules will be
      treated as Nonstatutory Stock Options, notwithstanding any contrary provision of the applicable Option Agreement(s).

  (g)         Investment Assurances. The Company may require a Participant, as a condition of exercising or acquiring Common Stock
      under any Stock Award, (i) to give written assurances satisfactory to the Company as to the Participant’s knowledge and experience in financial and business matters and/or to employ a purchaser representative reasonably satisfactory to the Company
      who is knowledgeable and experienced in financial and business matters and that he or she is capable of evaluating, alone or together with the purchaser representative, the merits and risks of exercising the Stock Award; and (ii) to give written
      assurances satisfactory to the Company stating that the Participant is acquiring Common Stock subject to the Stock Award for the Participant’s own account and not with any present intention of selling or otherwise distributing the Common Stock. The
      foregoing requirements, and any assurances given pursuant to such requirements, will be inoperative if (A) the issuance of the shares upon the exercise or acquisition of Common Stock under the Stock Award has been registered under a then currently
      effective registration statement under the Securities Act, or (B) as to any particular requirement, a determination is made by counsel for the Company that such requirement need not be met in the circumstances under the then applicable securities
      laws. The Company may, upon advice of counsel to the Company, place legends on stock certificates issued under the Plan as such counsel deems necessary or appropriate in order to comply with applicable securities laws, including, but not limited to,
      legends restricting the transfer of the Common Stock.

  (h)          Withholding Obligations. Unless prohibited by the terms of a Stock Award Agreement, the Company may, in its sole
      discretion, satisfy any federal, state or local tax withholding obligation relating to a Stock Award by any of the following means or by a combination of such means: (i) causing the Participant to tender a cash payment; (ii) withholding shares of
      Common Stock from the shares of Common Stock issued or otherwise issuable to the Participant in connection with the Stock Award; provided, however, that
      no shares of Common Stock are withheld with a value exceeding the minimum amount of tax required to be withheld by law (or such lesser amount as may be necessary to avoid classification of the Stock Award as a liability for financial accounting
      purposes); (iii) withholding cash from a Stock Award

  

  

  
    
      

      

    

    
      

    
      

      

    

  

  

  

  settled in cash; (iv) withholding payment from any amounts otherwise payable to the Participant; or (v) by such other method as
    may be set forth in the Stock Award Agreement.

  (i)          Electronic Delivery. Any reference herein to a “written” agreement or document will include any agreement or document
      delivered electronically or posted on the Company’s intranet (or other shared electronic medium controlled by the Company to which the Participant has access).

  (j)            Deferrals. To the extent permitted by applicable law, the Board, in its sole discretion, may determine that the
      delivery of Common Stock or the payment of cash, upon the exercise, vesting or settlement of all or a portion of any Stock Award may be deferred and may establish programs and procedures for deferral elections to be made by Participants. Deferrals by
      Participants will be made in accordance with Section 409A of the Code. Consistent with Section 409A of the Code, the Board may provide for distributions while a Participant is still an employee or otherwise providing services to the Company. The
      Board is authorized to make deferrals of Stock Awards and determine when, and in what annual percentages, Participants may receive payments, including lump sum payments, following the Participant’s termination of Continuous Service, and implement
      such other terms and conditions consistent with the provisions of the Plan and in accordance with applicable law.

  (k)        Compliance with Section 409A of the Code. To the extent that the Board determines that any Stock Award granted
      hereunder is subject to Section 409A of the Code, the Stock Award Agreement evidencing such Stock Award shall incorporate the terms and conditions necessary to avoid the consequences specified in Section 409A(a)(1) of the Code. To the extent
      applicable, the Plan and Stock Award Agreements shall be interpreted in accordance with Section 409A of the Code.

  (l)           Repurchase Limitation. The terms of any repurchase right will be specified in the Stock Award Agreement. The repurchase
      price for vested shares of Common Stock will be the Fair Market Value of the shares of Common Stock on the date of repurchase. The repurchase price for unvested shares of Common Stock will be the lower of (i) the Fair Market Value of the shares of
      Common Stock on the date of repurchase or (ii) their original purchase price. However, the Company will not exercise its repurchase right until at least six months (or such longer or shorter period of time necessary to avoid classification of the
      Stock Award as a liability for financial accounting purposes) have elapsed following delivery of shares of Common Stock subject to the Stock Award, unless otherwise specifically provided by the Board.

  9.          ADJUSTMENTS UPON CHANGES IN COMMON STOCK; OTHER CORPORATE EVENTS.

  (a)          Capitalization Adjustments. In the event of a Capitalization Adjustment, the Board will appropriately and
      proportionately adjust: (i) the class(es) and maximum number of securities subject to the Plan pursuant to Section 3(a), (ii) the class(es) and maximum number of securities that may be issued pursuant to the exercise of Incentive Stock Options
      pursuant to Section 3(c), and (iii) the class(es) and number of securities and price per share of stock subject to outstanding Stock Awards. The Board will make such adjustments, and its determination will be final, binding and conclusive.

  (b)          Dissolution. Except as otherwise provided in the Stock Award Agreement, in the event of a Dissolution of the Company,
      all outstanding Stock Awards (other than Stock Awards consisting of vested and outstanding shares of Common Stock not subject to a forfeiture condition or the Company’s right of repurchase) will terminate immediately prior to the completion of such
      Dissolution, and the shares of Common Stock subject to the Company’s repurchase rights or subject to a forfeiture condition may be repurchased or reacquired by the Company notwithstanding the fact that the holder of such Stock Award is providing
      Continuous Service, provided, however, that the Board may, in its sole discretion, cause some or

  

  

  
    
      

      

    

    
      

    
      

      

    

  

  

  

  all Stock Awards to become fully vested, exercisable and/or no longer subject to repurchase or forfeiture (to the extent such
    Stock Awards have not previously expired or terminated) before the Dissolution is completed but contingent on its completion.

  (c)          Transactions. The following provisions will
        apply to Stock Awards in the event of a Transaction unless otherwise provided in the Stock Award Agreement or any other written agreement between the Company or any Affiliate and the Participant or unless otherwise expressly provided by the Board
        at the time of grant of a Stock Award. In the event of a Transaction, then, notwithstanding any other provision of the Plan, the Board may take one or more of the following actions with respect to Stock Awards, contingent upon the closing or
        completion of the Transaction:

  (i)          arrange for the surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s parent company) to assume or continue the Stock Award or to substitute a similar stock award for the Stock
      Award (including, but not limited to, an award to acquire the same consideration paid to the stockholders of the Company pursuant to the Transaction);

  (ii)          arrange for the assignment of any reacquisition or repurchase rights held by the Company in respect of Common Stock issued pursuant to the Stock Award to the surviving corporation or acquiring corporation (or the
      surviving or acquiring corporation’s parent company);

  (iii)          accelerate the vesting, in whole or in part, of the Stock Award (and, if applicable, the time at which the Stock Award may be exercised) to a date prior to the effective time of such Transaction as the Board
      determines (or, if the Board does not determine such a date, to the date that is five days prior to the effective date of the Transaction), with such Stock Award terminating if not exercised (if applicable) at or prior to the effective time of the
      Transaction; provided, however, that the Board may require Participants to complete and deliver to the Company a notice of exercise before the effective date of a Transaction, which exercise is contingent upon the effectiveness of such Transaction;

  (iv)          arrange for the lapse, in whole or in part, of any reacquisition or repurchase rights held by the Company with respect to the Stock Award;

  (v)          cancel or arrange for the cancellation of the Stock Award, to the extent not vested or not exercised prior to the effective time of the Transaction, in exchange for such cash consideration or no consideration as the
      Board, in its sole discretion, may consider appropriate; and

  (vi)          make a payment, in such form as may be determined by the Board equal to the excess, if any, of (A) the value of the property the Participant would have received upon the exercise of the Stock Award immediately prior
      to the effective time of the Transaction, over (B) any exercise price payable by such holder in connection with such exercise. For clarity, this payment may be zero ($0) if the value of the property is equal to or less than the exercise price.
      Payments under this provision may be delayed to the same extent that payment of consideration to the holders of the Company’s Common Stock in connection with the Transaction is delayed as a result of escrows, earn outs, holdbacks or any other
      contingencies.

  The Board need not take the same action or actions with respect to all Stock Awards or portions thereof or with respect to all
    Participants. The Board may take different actions with respect to the vested and unvested portions of a Stock Award.

  (d)          Change in Control. A Stock Award may be subject to additional acceleration of vesting and exercisability upon or after
      a Change in Control as may be provided in the Stock Award Agreement for

  

  

  
    
      

      

    

    
      

    
      

      

    

  

  

  

  such Stock Award or as may be provided in any other written agreement between the Company or any Affiliate and the Participant,
    but in the absence of such provision, no such acceleration will occur.

  
    
      	10.	
              PLAN TERM; EARLIER TERMINATION OR SUSPENSION OF THE PLAN.

            

    

  

  (a)          Plan Term. The Board may suspend or terminate the Plan at any time. Unless terminated sooner by the Board, the Plan
      will automatically terminate on the day before the tenth anniversary of the earlier of (i) the date the Plan is adopted by the Board, or (ii) the date the Plan is approved by the stockholders of the Company. No Stock Awards may be granted under the
      Plan while the Plan is suspended or after it is terminated.

  (b)          No Impairment of Rights. Suspension or termination of the Plan will not impair rights and obligations under any Stock
      Award granted while the Plan is in effect except with the written consent of the affected Participant or as otherwise permitted in the Plan.

  
    
      	11.	
              EFFECTIVE DATE OF PLAN.

            

    

  

  This Plan will become effective on the Effective Date.

  
    
      	12.	
              CHOICE OF LAW.

            

    

  

  The laws of the State of Delaware will govern all questions concerning the construction, validity and
    interpretation of this Plan, without regard to that state’s conflict of laws rules.

  13.          DEFINITIONS. As used in the Plan, the following definitions will apply to the capitalized terms indicated below:

  (a)          “Affiliate” means, at the time of determination, any “parent” or “majority-owned subsidiary” of the
      Company, as such terms are defined in Rule 405. The Board will have the authority to determine the time or times at which “parent” or “majority-owned subsidiary” status is determined within the foregoing definition.

  (b)          “Board” means the Board of Directors of the Company.

  (c)          “Capitalization Adjustment” means any change that is made in, or other events that occur with
      respect to, the Common Stock subject to the Plan or subject to any Stock Award after the Effective Date without the receipt of consideration by the Company through merger, consolidation, reorganization, recapitalization, reincorporation, stock
      dividend, dividend in property other than cash, large nonrecurring cash dividend, stock split, reverse stock split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure, or any similar equity restructuring
      transaction, as that term is used in Statement of Financial Accounting Standards Board Accounting Standards Codification Topic 718 (or any successor thereto). Notwithstanding the foregoing, the conversion of any convertible securities of the Company
      will not be treated as a Capitalization Adjustment.

  (d)          “Cause” will have the meaning ascribed to such term in any written agreement between the Participant
      and the Company defining such term and, in the absence of such agreement, such term means, with respect to a Participant, the occurrence of any of the following events: (i) such Participant’s commission of any felony or any crime involving fraud,
      dishonesty or moral turpitude under the laws of the United States or any state thereof; (ii) such Participant’s attempted commission of, or participation in, a fraud or act of dishonesty against the Company; (iii) such Participant’s intentional,
      material violation of

  

  

  
    
      

      

    

    
      

    
      

      

    

  

  

  

  any contract or agreement between the Participant and the Company or of any statutory duty owed to the Company; (iv) such
    Participant’s unauthorized use or disclosure of the Company’s confidential information or trade secrets; or (v) such Participant’s gross misconduct. The determination that a termination of the Participant’s Continuous Service is either for Cause or
    without Cause will be made by the Company, in its sole discretion. Any determination by the Company that the Continuous Service of a Participant was terminated with or without Cause for the purposes of outstanding Stock Awards held by such Participant
    will have no effect upon any determination of the rights or obligations of the Company or such Participant for any other purpose.

  (e)          “Change in Control” means the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events:

  (i)          any Exchange Act Person becomes the Owner, directly or indirectly, of securities of the Company representing more than 50% of the combined voting power of the Company’s then outstanding securities other than by
      virtue of a merger, consolidation or similar transaction. Notwithstanding the foregoing, a Change in Control will not be deemed to occur (A) on account of the acquisition of securities of the Company directly from the Company, (B) on account of the
      acquisition of securities of the Company by an investor, any affiliate thereof or any other Exchange Act Person that acquires the Company’s securities in a transaction or series of related transactions the primary purpose of which is to obtain
      financing for the Company through the issuance of equity securities or (C) solely because the level of Ownership held by any Exchange Act Person (the “Subject Person”) exceeds the designated percentage threshold of the outstanding voting securities as a result of a repurchase or other acquisition of voting securities by the Company reducing the number of shares outstanding,
      provided that if a Change in Control would occur (but for the operation of this sentence) as a result of the acquisition of voting securities by the Company, and after such share acquisition, the Subject Person becomes the Owner of any additional
      voting securities that, assuming the repurchase or other acquisition had not occurred, increases the percentage of the then outstanding voting securities Owned by the Subject Person over the designated percentage threshold, then a Change in Control
      will be deemed to occur;

  (ii)          there is consummated a merger, consolidation or similar transaction involving (directly or indirectly) the Company and, immediately after the consummation of such merger, consolidation or similar transaction, the
      stockholders of the Company immediately prior thereto do not Own, directly or indirectly, either (A) outstanding voting securities representing more than 50% of the combined outstanding voting power of the surviving Entity in such merger,
      consolidation or similar transaction or (B) more than 50% of the combined outstanding voting power of the parent of the surviving Entity in such merger, consolidation or similar transaction, in each case in substantially the same proportions as their
      Ownership of the outstanding voting securities of the Company immediately prior to such transaction;

  (iii)          there is consummated a sale, lease, exclusive license or other disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries, other than a sale, lease, license or other
      disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries to an Entity, more than 50% of the combined voting power of the voting securities of which are Owned by stockholders of the Company in
      substantially the same proportions as their Ownership of the outstanding voting securities of the Company immediately prior to such sale, lease, license or other disposition; or

  (iv)          individuals who, on the date the Plan is adopted by the Board, are members of the Board (the “Incumbent
        Board”) cease for any reason to constitute at least a majority of the members of the

  

  

  
    
      

      

    

    
      

    
      

      

    

  

  

  

  Board; provided, however, that
    if the appointment or election (or nomination for election) of any new Board member was approved or recommended by a majority vote of the members of the Incumbent Board then still in office, such new member will, for purposes of this Plan, be
    considered as a member of the Incumbent Board.

  Notwithstanding the foregoing definition or any other provision of this Plan, (A) the term Change in Control will not include a
    sale of assets, merger or other transaction effected exclusively for the purpose of changing the domicile of the Company, and (B) the definition of Change in Control (or any analogous term) in an individual written agreement between the Company or any
    Affiliate and the Participant will supersede the foregoing definition with respect to Stock Awards subject to such agreement; provided, however, that
    if no definition of Change in Control or any analogous term is set forth in such an individual written agreement, the foregoing definition will apply.

  (f)          “Code” means the Internal Revenue Code of 1986, as amended, including any applicable regulations and
      guidance thereunder.

  (g)          “Committee” means a committee of one or more Directors to whom authority has been delegated by the
      Board in accordance with Section 2(c).

  (h)          “Common Stock” means the common stock of the Company.

  (i)          “Company” means Bay Dynamics, Inc., a Delaware corporation.

  (j)          “Consultant” means any person or Entity, including an advisor, who is (i) engaged by the Company or
      an Affiliate to render consulting or advisory services and is compensated for such services, or (ii) serving as a member of the board of directors of an Affiliate and is compensated for such services. However, service solely as a Director, or payment
      of a fee for such service, will not cause a Director to be considered a “Consultant” for purposes of the Plan.

  (k)          “Continuous Service” means that the Participant’s service with the Company or an Affiliate, whether
      as an Employee, Director or Consultant, is not interrupted or terminated. A change in the capacity in which the Participant renders service to the Company or an Affiliate as an Employee, Director or Consultant or a change in the Entity for which the
      Participant renders such service, provided that there is no interruption or termination of the Participant’s service with the Company or an Affiliate, will not terminate a Participant’s Continuous Service; provided, however, that if the Entity for which a Participant is rendering services ceases to qualify as an Affiliate, as determined by the Board in its sole discretion, such
      Participant’s Continuous Service will be considered to have terminated on the date such Entity ceases to qualify as an Affiliate. For example, a change in status from an Employee of the Company to a Consultant of an Affiliate or to a Director will
      not constitute an interruption of Continuous Service. To the extent permitted by law, the Board or the chief executive officer of the Company, in that party’s sole discretion, may determine whether Continuous Service will be considered interrupted in
      the case of (i) any leave of absence approved by the Board or chief executive officer, including sick leave, military leave or any other personal leave, or (ii) transfers between the Company, an Affiliate, or their successors. Notwithstanding the
      foregoing, a leave of absence will be treated as Continuous Service for purposes of vesting in a Stock Award only to such extent as may be provided in the Company’s leave of absence policy, in the written terms of any leave of absence agreement or
      policy applicable to the Participant, or as otherwise required by law.

  (l)          “Corporate Transaction” means the consummation, in a single transaction or in a series of related
      transactions, of any one or more of the following events:

  

  

  

  

  
    
      

      

    

    
      

    
      

      

    

  

  

  

  (i)          a sale or other disposition of all or substantially all, as determined by the Board in its sole discretion, of the consolidated assets of the Company and its Subsidiaries;

  (ii)          a sale or other disposition of more than 50% of the outstanding securities of the Company;

  (iii)          a merger, consolidation or similar transaction following which the Company is not the surviving corporation; or

  (iv)          a merger, consolidation or similar transaction following which the Company is the surviving corporation but the shares of Common Stock outstanding immediately preceding the merger, consolidation or similar
      transaction are converted or exchanged by virtue of the merger, consolidation or similar transaction into other property, whether in the form of securities, cash or otherwise.

  (m)          “Director” means a member of the Board.

  (n)          “Disability” means, with respect to a Participant, the inability of such Participant to engage in
      any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or that has lasted or can be expected to last for a continuous period of not less than 12 months as
      provided in Sections 22(e)(3) and 409A(a)(2)(c)(i) of the Code, and will be determined by the Board on the basis of such medical evidence as the Board deems warranted under the circumstances.

  (o)          “Dissolution” means when the Company, after having executed a certificate of dissolution with the
      State of Delaware, has completely wound up its affairs. Conversion of the Company into a limited liability company will not be considered a “Dissolution” for purposes of the Plan.

  (p)           “Effective Date” means the effective date of this Plan, which is the earlier of (i) the date that
      this Plan is first approved by the Company’s stockholders, and (ii) the date this Plan is adopted by the Board.

  (q)         “Employee” means any person employed by the Company or an Affiliate. However, service solely as a
      Director, or payment of a fee for such services, will not cause a Director to be considered an “Employee” for purposes of the Plan.

  (r)            “Entity” means a corporation, partnership, limited liability company or other entity.

  (s)            “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations
      promulgated thereunder.

  (t)          “Exchange Act Person” means any natural person, Entity or “group” (within the meaning of Section
      13(d) or 14(d) of the Exchange Act), except that “Exchange Act Person” will not include (i) the Company or any Subsidiary of the Company, (ii) any employee benefit plan of the Company or any Subsidiary of the Company or any trustee or other fiduciary
      holding securities under an employee benefit plan of the Company or any Subsidiary of the Company, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, (iv) an Entity Owned, directly or indirectly, by the
      stockholders of the Company in substantially the same proportions as their Ownership of stock of the Company; or (v) any natural person, Entity or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act) that, as of the Effective
      Date, is the Owner, directly or indirectly, of securities of the Company representing more than 50% of the combined voting power of the Company’s then outstanding securities.

  

  

  

  

  
    
      

      

    

    
      

    
      

      

    

  

  

  

  (u)          “Fair Market Value” means, as of any date, the value of the Common Stock determined by the Board in
      compliance with Section 409A of the Code or, in the case of an Incentive Stock Option, in compliance with Section 422 of the Code.

  (v)           “Incentive Stock Option” means an option granted pursuant to Section 5 of the Plan that is intended
      to be, and that qualifies as, an “incentive stock option” within the meaning of Section 422 of the Code.

  (w)          “Nonstatutory Stock Option” means any option granted pursuant to Section 5 of the Plan that does not
      qualify as an Incentive Stock Option.

  (x)           “Officer” means any person designated by the Company as an officer.

  (y)           “Option” means an Incentive Stock Option or a Nonstatutory Stock Option to purchase shares of Common
      Stock granted pursuant to the Plan.

  (z)          “Option Agreement” means a written agreement between the Company and an Optionholder evidencing the
      terms and conditions of an Option grant. Each Option Agreement will be subject to the terms and conditions of the Plan.

  (aa)         “Optionholder” means a person to whom an Option is granted pursuant to the Plan or, if applicable,
      such other person who holds an outstanding Option.

  (bb)         “Other Stock Award” means an award based in whole or in part by reference to the Common Stock which
      is granted pursuant to the terms and conditions of Section 6(c).

  (cc)         “Other Stock Award Agreement” means a written agreement between the Company and a holder of an Other
      Stock Award evidencing the terms and conditions of an Other Stock Award grant. Each Other Stock Award Agreement will be subject to the terms and conditions of the Plan.

  (dd)        “Own,” “Owned,” “Owner,” “Ownership” A person or Entity will be deemed to “Own,” to have “Owned,” to be the “Owner” of, or to have acquired “Ownership” of securities if such person or Entity, directly or indirectly, through any contract,
      arrangement, understanding, relationship or otherwise, has or shares voting power, which includes the power to vote or to direct the voting, with respect to such securities.

  (ee)          “Participant” means a person to whom a Stock Award is granted pursuant to the Plan or, if
      applicable, such other person who holds an outstanding Stock Award.

  (ff)          “Plan” means this Bay Dynamics, Inc. 2016 Equity Incentive Plan.

  (gg)         “Restricted Stock Award” means an award of shares of Common Stock which is granted pursuant to the
      terms and conditions of Section 6(a).

  (hh)        “Restricted Stock Award Agreement” means a written agreement between the Company and a holder of a
      Restricted Stock Award evidencing the terms and conditions of a Restricted Stock Award grant. Each Restricted Stock Award Agreement will be subject to the terms and conditions of the Plan.

  (ii)           “Restricted Stock Unit Award” means a right to receive shares of Common Stock which is granted
      pursuant to the terms and conditions of Section 6(b).

  

  

  

  

  
    
      

      

    

    
      

    
      

      

    

  

  

  

   (jj)          “Restricted Stock Unit Award Agreement” means a written agreement between the Company and a holder of a Restricted
      Stock Unit Award evidencing the terms and conditions of a Restricted Stock Unit Award grant. Each Restricted Stock Unit Award Agreement will be subject to the terms and conditions of the Plan.

  (kk)         “Rule 405” means Rule 405 promulgated under the Securities Act.

  (ll)           “Rule 701” means Rule 701 promulgated under the Securities Act.

  (mm)      “Securities Act” means the Securities Act of 1933, as amended.

  (nn)         “Stock Appreciation Right” or “SAR” means a right to receive the appreciation on Common Stock that is granted pursuant to the terms and conditions of Section 5.

  (oo)         “Stock Appreciation Right Agreement” means a written agreement between the Company and a holder of a
      Stock Appreciation Right evidencing the terms and conditions of a Stock Appreciation Right grant. Each Stock Appreciation Right Agreement will be subject to the terms and conditions of the Plan.

  (pp)        “Stock Award” means any right to receive Common Stock granted under the Plan, including an Incentive
      Stock Option, a Nonstatutory Stock Option, a Restricted Stock Award, a Restricted Stock Unit Award, a Stock Appreciation Right or any Other Stock Award.

  (qq)         “Stock Award Agreement” means a written agreement between the Company and a Participant evidencing
      the terms and conditions of a Stock Award grant. Each Stock Award Agreement will be subject to the terms and conditions of the Plan.

  (rr)          “Subsidiary” means, with respect to the Company, (i) any corporation of which more than 50% of the
      outstanding capital stock having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective of whether, at the time, stock of any other class or classes of such corporation will have or might have voting
      power by reason of the happening of any contingency) is at the time, directly or indirectly, Owned by the Company, and (ii) any partnership, limited liability company or other entity in which the Company has a direct or indirect interest (whether in
      the form of voting or participation in profits or capital contribution) of more than 50%.

  (ss)          “Ten Percent Stockholder” means a person who Owns (or is deemed to Own pursuant to Section 424(d) of
      the Code) stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or any Affiliate.

  (tt)          “Transaction” means a Corporate Transaction or a Change in Control.

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