Document:

Form of Stock Option Agreement

 Exhibit 10.1 
 ZHONE TECHNOLOGIES, INC. AMENDED AND RESTATED 
 2001 STOCK INCENTIVE PLAN 
 STOCK OPTION AGREEMENT 
 THIS
AGREEMENT, is made as of the day of ______, 200_, by and between Zhone Technologies, Inc., a Delaware corporation (the “Company”), and the individual named on the Notice of Grant who is employed by, or providing services to,
the Company or one of its affiliates and who is a signatory hereto (the “Optionee”). 
 WHEREAS, the Board of Directors and
stockholders of the Company have duly adopted and approved the Zhone Technologies, Inc. Amended and Restated 2001 Stock Incentive Plan (the “Plan”) in order to provide additional incentive to certain employees, officers, consultants and
directors of the Company and its Subsidiaries; and 
 WHEREAS, the Committee appointed to administer the Plan has determined that it would be
to the advantage and best interest of the Company and its stockholders to grant the Option provided for herein to the Optionee as an inducement to enter into or remain in the service of the Company or its Subsidiaries and as an incentive for
increased efforts during such service, and has advised the Company thereof and instructed the undersigned officers to issue this Option; 
 NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties hereto agree as follows: 
 1.
Grant of Option. 
 1.1 In consideration of the Optionee’s agreement to remain in the employ of the
Company or its Subsidiaries and for other good and valuable consideration, on the date hereof, the Company irrevocably grants to the Optionee the right and option (the “Option”) to purchase all or any part of that number of whole
Shares as is set forth in the Notice of Grant attached hereto upon the terms and conditions set forth in this Agreement and such Notice of Grant. If designated in the Notice of Grant as an Incentive Stock Option, the Option is intended to qualify as
an “incentive stock option” within the meaning of Section 422 of the Code and shall be so construed; provided, however, that nothing in this Agreement shall be interpreted as a representation, guarantee or undertaking on
the part of the Company that the Option is or will be determined to be an incentive stock option within the meaning of Section 422 of the Code. 
 1.2 In consideration of the granting of this Option by the Company, the Optionee agrees to render faithful and efficient services to the Company or a Subsidiary, with such duties and responsibilities as the Company
shall from time to time prescribe, for a period of at least one (1) year (or such shorter period as may be fixed in the Notice of Grant) from the Date of Grant set forth is the Notice of Grant. 

 1.3 This Agreement shall be construed in accordance and consistent with, and subject to,
the provisions of the Plan (the provisions of which are incorporated herein by reference) and, except as otherwise expressly set forth herein, the capitalized terms used in this Agreement shall have the same definitions as set forth in the Plan. In
the event any provision of this Agreement shall conflict with any of the terms in the Plan as constituted on the Date of Grant, the terms of the Plan as constituted on the Date of Grant shall control. 
 2. Purchase Price. 
 The price at which the Optionee shall be entitled to purchase Shares upon the exercise of the Option shall be equal to the Option Price per Share set forth in the Notice of Grant attached hereto. 
 3. Duration of Option. 
 The Option shall be exercisable to the extent and in the manner provided herein for a period of seven (7) years from the Date of Grant (the “Exercise Term”); provided, however, that the Option
may be earlier terminated as provided in Section 6 hereof. Notwithstanding any provision of this Option to the contrary, if designated in the Notice of Grant as an Incentive Stock Option, in no event may this Option be exercised after five
(5) years in the event this Option is granted to a Ten-Percent Stockholder. 
 4. Exercisability of Option. 

4.1 Unless otherwise provided in this Agreement or the Plan, the Option shall become vested and exercisable in accordance with the
Vesting Schedule set forth in the Notice of Grant. Each installment that becomes vested and exercisable shall be cumulative and shall remain exercisable during the remaining period of the Exercise Term, unless sooner exercised or terminated as
herein provided. 
 4.2 Anything contained in this Agreement to the contrary notwithstanding, to the extent the Option is
intended to qualify as an Incentive Stock Option, as set forth in the Notice of Grant, the Option shall not be exercisable as an Incentive Stock Option, and shall be treated as a Nonqualified Stock Option, to the extent that the aggregate Fair
Market Value (determined as of the date of grant of each option) of Shares with respect to which Incentive Stock Options granted under the Plan and “incentive stock options” (within the meaning of Section 422 of the Code) granted
under all other plans of the Company or its Subsidiaries (in either case determined without regard to this Section 4.2) are exercisable by the Optionee for the first time during any calendar year exceeds $100,000. In applying the limitation in
the preceding sentence in the case of multiple option grants, options which were intended to be Incentive Stock Options shall be treated as Nonqualified Stock Options according to the order in which they were granted such that the most recently
granted options are first treated as Nonqualified Stock Options. 
  

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 5. Manner of Exercise and Payment. 
 5.1 Subject to the terms and conditions of this Agreement and the Plan (including without limitation, any alternative method of exercise
and payment), the Option may be exercised by delivery to the Secretary of the Company, at its principal executive office of a written notice signed by the Optionee (or the person or persons then entitled to exercise the Option) complying with the
applicable rules established by the Committee. Such notice shall state that the Optionee is electing to exercise the Option in whole or in part and the number of whole Shares in respect of which the Option is being exercised, provided,
however, that any partial exercise of the Option shall be for not less than five hundred (500) Shares (or the minimum installment, if a smaller number of Shares). If requested by the Committee, the Optionee or such other person or
persons shall (i) deliver this Agreement to the Secretary of the Company who shall endorse thereon a notation of such exercise and (ii) provide satisfactory proof as to the right of such person or persons to exercise the Option.

 5.2 The notice of exercise described in Section 5.1 hereof shall be accompanied by the full purchase price for
the Shares in respect of which the Option is being exercised, in cash, by check, or with the consent of the Committee, (i) by Shares that have been held by the Optionee for at least six (6) months prior to the exercise of the Option, duly
endorsed for transfer to the Company, that have a Fair Market Value on the day preceding the date of exercise equal to the cash amount for which such Shares are substituted or (ii) by Shares issuable to the Optionee upon exercise of the Option,
with a Fair Market Value on the date of delivery equal to the cash amount for which such Shares are substituted, or (iii) by a combination of cash and the transfer of Shares. 
 5.3 Upon receipt of notice of exercise and full payment for the Shares in respect of which the Option is being exercised and all amounts
which under federal, state or local law the Company (or other employer corporation) is required to withhold upon exercise of the Option in accordance with Section 12 hereof, the Company shall, subject to Section 14 of the Plan, take such
action as may be necessary to effect the transfer to the Optionee of the number of Shares as to which such exercise was effective. 
 5.4 The Optionee shall not be deemed to be the owner of any Shares subject to the Option unless and until (i) the Option shall have been exercised pursuant to the terms of this Agreement and the Optionee shall have paid the full
purchase price for the number of Shares in respect of which the Option was exercised and all amounts which under federal, state or local law the Company (or other employer corporation) is required to withhold upon exercise of the Option,
(ii) the Company shall have issued and delivered the Shares to the Optionee, and (iii) the Optionee’s name shall have been entered as a stockholder of record on the books of the Company, whereupon the Optionee shall have full voting,
dividend and other ownership rights with respect to such Shares. 
  

 3 

 6. Termination of Employment. The following provisions apply to the Option upon a
termination or change in the status of the employment of the Optionee: 
 6.1 Disability or Retirement. If the Optionee
suffers a Disability or retires on or after the Optionee’s Normal Retirement Date, (i) the Option or portion thereof which the Optionee was entitled to exercise on the date of the Optionee’s Termination of Employment shall continue to
be exercisable in whole or in part by the Optionee or his or her guardian or legal representative at any time within one (1) year after the Disability Date or date of Termination of Employment by reason of retirement, as the case may be, but in
no event after the expiration of the Exercise Term and (ii) unless otherwise determined by the Committee, the unvested portion of the Option shall terminate on the Disability Date or the date of such Termination of Employment by reason of
retirement. To the extent the Option is an Incentive Stock Option, it shall only qualify as such for a period of three (3) months from the date of the Optionee’s Termination of Employment by reason of Disability or retirement and it shall
be a Nonqualified Stock Option thereafter. 
 6.2 Death. If the Optionee dies while still employed by the Company or
any Subsidiary, the Option shall immediately become vested and exercisable with respect to those Shares that otherwise would have vested during the one-year period following the Optionee’s death and shall be deemed to have become vested and
exercisable on the day preceding the date of the Optionee’s death. The portion of the Option which the Optionee was entitled to exercise on the date of the Optionee’s death (which shall include the portion of the Option that becomes vested
and exercisable pursuant to the preceding sentence) (i) shall continue to be exercisable in whole or in part at any time by the Optionee’s Beneficiary within one (1) year after the Optionee’s death but in no event after the
expiration of the Exercise Term and (ii) unless otherwise determined by the Committee, the unvested portion of the Option shall terminate on the date of such death. If the Optionee dies after his or her Termination of Employment, then the
Option or the portion thereof which the Optionee was entitled to exercise on the date of the Optionee’s death may be exercised by his or her Beneficiary within the period specified in Sections 6.1 or 6.4, as the case may be. In the event of the
Optionee’s death, the Option shall be exercisable, to the extent provided in the Plan and this Agreement, by the legatee or legatees under his will, or by his personal representatives or distributees and such person or persons shall be
substituted for the Optionee each time the Optionee is referred to herein. 
 6.3 Termination for Cause. If the
Optionee’s Termination of Employment arises as a result of a termination for Cause, any unexercised portion of the Option (whether or not vested and exercisable) shall terminate and expire concurrently with the Optionee’s Termination of
Employment, and no rights hereunder may be exercised by the Optionee. 
 6.4
Other Termination of Employment. Upon the Optionee’s 

  

 4 

 
Termination of Employment under circumstances other than those described in Sections 6.1 and 6.2 and for any reason other than a termination for Cause,
(i) the Option or portion thereof which the Optionee was entitled to exercise on the date of the Optionee’s Termination of Employment shall continue to be exercisable in whole or in part at any time by the Optionee within three
(3) months after the Optionee’s Termination of Employment but in no event after the expiration of the Exercise Term and (ii) unless otherwise determined by the Committee, the unvested portion of the Option shall terminate on the date
of such Termination of Employment. 
 7. Effect of Change in Control. 
 Notwithstanding anything contained in this Agreement to the contrary, in the event of a Change in Control, the Option shall continue;
provided, however, that the Committee, in its sole discretion and on such terms and conditions as it deems appropriate, may provide for any or all of the following alternatives (separately or in any combination): 
 (a) for the payment in cash upon the surrender to the Company for cancellation of the Option or portion of the Option to the extent vested
and not yet exercised in an amount equal to the excess, if any, of (1) (A) in the case of a Nonqualified Stock Option, the greater of (i) the Fair Market Value, on the date preceding the date of surrender, of the Shares subject to the
Option or portion thereof surrendered or (ii) the Adjusted Fair Market Value of the Shares subject to the Option or portion thereof surrendered or (B) in the case of an Incentive Stock Option, the Fair Market Value, on the date preceding
the date of surrender, of the Shares subject to the Option or portion thereof surrendered, over (2) the aggregate purchase price for such Shares under the Option or portion thereof surrendered. 
 (b) for the replacement of the Option with other rights or property selected by the Committee in its sole discretion; 
 (c) for the accelerated vesting of all or a portion of the Option; 
 (d) for the assumption of the Option by the successor or survivor corporation, or a parent or subsidiary thereof, or the substitution by
such corporation for the Option of a new option covering the stock of the successor or survivor corporation, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of shares and prices; or 
 (e) for adjustments in the terms and conditions of the Option and/or the number and type of Shares or other securities or property subject
to the Option. 
 In the case of a Change in Control which is also intended to constitute a Pooling Transaction, the Committee
shall take such actions, if any, as are specifically 

  

 5 

 
recommended by an independent accounting firm retained by the Company to the extent reasonably necessary in order to assure that the Pooling Transaction will
qualify as such, including, without limitation (i) deferring the vesting, exercise or payment of the Option, (ii) providing that the payment of the Option shall be made in the form of cash, Shares or securities of a successor or acquirer
of the Company, or a combination of the foregoing, and (iii) providing for the extension of the term of the Option to the extent necessary to accommodate the foregoing, but in no event beyond the Exercise Term. 
 8. Nontransferability. 
 The Option granted hereunder shall not be transferable by the Optionee other than by will or the laws of descent and distribution or, if the Option is a designated as a Nonqualified Stock Option in the Notice of Grant, to a spouse or former
spouse pursuant to a domestic relations order (within the meaning of Rule 16a-12 pomulgated under the Exchange Act (a “Domestic Relations Transfer”). The Option may be exercised during the lifetime of the Optionee only by the Optionee or
his or her guardian or legal representative; provided, however, if the Option is designated as a Nonqualified Stock Option and transferred to a spouse or a former spouse pursuant to a Domestic Relations Transfer, the Option may be
exercised by such spouse or former spouse and provided, further, however, that, if the Option is designated as a Nonqualified Stock Option, the Committee, in its sole discretion, may provide that this Option may be otherwise
transferable and exercisable by a transferee. Following transfer, for purposes of this Agreement, a transferee of an Option shall be deemed to be the Optionee; provided that the Option shall be exercisable by the transferee only to the extent and
for such periods that the Option would have been exercisable if held by the Optionee. The terms of the Option shall be final, binding and conclusive upon the beneficiaries, executors, administrators, heirs and successors of the Optionee. 

9. No Right to Continued Employment. 
 Nothing in this Agreement or the Plan shall be interpreted or construed to confer upon the Optionee any right to continue in the employ of the Company or any Subsidiary, nor shall this Agreement or the Plan interfere
with or restrict in any way the rights of the Company or any Subsidiary, which are hereby expressly reserved, to terminate the Optionee’s employment at any time, with or without Cause. 
 10. Adjustments. 
 In
the event of a Change in Capitalization, the Committee may make appropriate adjustments to the number and class of Shares or other stock or securities subject to the Option and the purchase price for such Shares or other stock or securities.
The Committee’s adjustment shall be made in accordance with the provisions of Section 14 of the Plan and shall be effective and final, binding and conclusive for all purposes of the Plan and this Agreement. 
  

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 11. Effect of a Merger Consolidation or Liquidation. 
 Subject to Section 7 hereof, in the event of (i) the liquidation or dissolution of the Company or (ii) a merger or
consolidation of the Company (a “Transaction”), the Option shall continue in effect in accordance with its terms and the Option shall be treated as provided for in the agreement entered into in connection with the Transaction or, if
not so provided in such agreement, the Optionee shall be entitled to receive in respect of all Shares subject to the Option, upon exercise of the Option, the same number and kind of stock, securities, cash, property or other consideration that each
holder of Shares was entitled to receive in the Transaction in respect of a Share; provided, however, that such stock, securities, cash, property, or other consideration shall remain subject to all of the conditions and restrictions
applicable to the Option prior to such Transaction. 
 12. Withholding of Taxes. 
 At such times as the Optionee recognizes taxable income in connection with the receipt of Shares or cash hereunder (a “Taxable
Event”), the Optionee shall pay to the Company in cash an amount equal to the federal, state and local income taxes and other amounts as may be required by law to be withheld by the Company in connection with the Taxable Event (the
“Withholding Taxes”) prior to the issuance, or release from escrow, of such Shares or the payment of such cash. The Company shall have the right to deduct from any payment of cash to the Optionee an amount equal to the Withholding Taxes in
satisfaction of the obligation to pay Withholding Taxes. In satisfaction of the Withholding Taxes, the Optionee may make a written election (the “Tax Election”), which may be accepted or rejected in the sole discretion of the Committee,
(i) to have withheld a portion of the Shares issuable to him or her upon exercise of the Option, having an aggregate Fair Market Value, on the date preceding the date of such issuance, equal to the minimum Withholding Taxes required to be
withheld or (ii) to deliver Shares that have been held by the Optionee for at least six (6) months, duly endorsed for transfer to the Company, having an aggregate Fair Market Value on the day preceding the date of exercise equal to the
minimum Withholding Taxes required to be withheld. 
 13. Disqualifying Disposition. 
 To the extent that this Option is designated as an Incentive Stock Option in the Notice of Grant and the Optionee disposes of the Shares
acquired upon exercise of this Option within two (2) years following the Date of Grant as specified in the Notice of Grant or within one (1) year following the issuance thereof to the Optionee (a “Disqualifying Disposition”), the
Optionee shall immediately prior to such Disqualifying Disposition notify the Company in writing of the date and terms of such Disqualifying Disposition and provide such other information regarding the Disqualifying Disposition as the Company may
reasonably require. 
  

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 14. Optionee Bound by the Plan. 
 The Optionee hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all the terms and provisions thereof. 

15. Modification of Agreement. 
 This Agreement may be modified, amended, suspended or terminated, and any terms or conditions may be waived, by the Company provided, however, that any such modification, amendment, suspension,
termination or waiver that adversely alters or impairs any rights or obligations under this Option may be made only by a written instrument executed by the parties hereto. 
 16. Severability. 
 Whenever possible, each provision in this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be held by a court of competent jurisdiction to be
prohibited by or invalid or unenforceable under applicable law, then (a) such provision shall be deemed amended to accomplish the objectives of the provision as originally written to the fullest extent permitted by law and (b) all other
provisions of this Agreement shall remain in full force and effect. 
 17. Governing Law. 
 The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Delaware
without giving effect to the conflicts of laws principles thereof. 
 18. Successors in Interest. 
 This Agreement shall inure to the benefit of and be binding upon any successor to the Company. This Agreement shall inure to the benefit
of the Optionee’s legal representatives. All obligations imposed upon the Optionee and all rights granted to the Company under this Agreement shall be final, binding and conclusive upon the Optionee’s heirs, executors, administrators and
successors. 
 19. Resolution of Disputes. 
 Any dispute or disagreement which may arise under, or as a result of, or in any way relate to, the interpretation, construction or
application of this Agreement shall be determined by the Committee. Any determination made hereunder shall be final, binding and conclusive on the Optionee and Company for all purposes. 
  

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 IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Agreement, or caused this
Agreement to be duly executed and delivered in their name and on their behalf, as of the day and year first above written. 
  

			
	 ZHONE TECHNOLOGIES, INC.

		
	 By:   
	 	  
		 	 Name:_________________________________

		 	 Title:__________________________________

		
		 	  
		 	 Name of Optionee: [INSERT NAME]

  

 92002 LONG-TERM INCENTIVE PLAN

 EXHIBIT 10.4 
 SCANSOURCE, INC. 
 2002 LONG-TERM INCENTIVE PLAN 

 TABLE OF CONTENTS 
  

			
	ARTICLE 1 PURPOSE	  	1
		
	 1.1 GENERAL.
	  	1
		
	ARTICLE 2 EFFECTIVE DATE	  	1
		
	 2.1 EFFECTIVE DATE.
	  	1
		
	ARTICLE 3 DEFINITIONS	  	1
		
	 3.1 DEFINITIONS
	  	1
		
	ARTICLE 4 ADMINISTRATION	  	5
		
	 4.1. COMMITTEE
	  	5
		
	 4.2 ACTION AND INTERPRETATIONS BY THE COMMITTEE
	  	5
		
	 4.3 AUTHORITY OF COMMITTEE
	  	5
		
	 4.4. AWARD CERTIFICATES
	  	6
		
	 ARTICLE 5 SHARES SUBJECT TO THE PLAN
	  	6
		
	 5.1. NUMBER OF SHARES
	  	6
		
	 5.2. LAPSED AWARDS
	  	7
		
	 5.3. STOCK DISTRIBUTED
	  	7
		
	 5.4. LIMITATION ON AWARDS
	  	7
		
	 ARTICLE 6 ELIGIBILITY
	  	7
		
	 6.1. GENERAL
	  	7
		
	 ARTICLE 7 STOCK OPTIONS
	  	7
		
	 7.1. GENERAL
	  	7
		
	 7.2. INCENTIVE STOCK OPTIONS
	  	8
		
	 ARTICLE 8 STOCK APPRECIATION RIGHTS
	  	9
		
	 8.1. GRANT OF STOCK APPRECIATION RIGHTS
	  	9
		
	 ARTICLE 9 PERFORMANCE AWARDS
	  	9
		
	 9.1. GRANT OF PERFORMANCE AWARDS
	  	9
		
	 9.2. PERFORMANCE GOALS
	  	9
		
	 9.3. RIGHT TO PAYMENT
	  	9
		
	 9.4. OTHER TERMS
	  	9
		
	 ARTICLE 10 RESTRICTED STOCK AWARDS
	  	10
		
	 10.1. GRANT OF RESTRICTED STOCK
	  	10
		
	 10.2. ISSUANCE AND RESTRICTIONS
	  	10
		
	 10.3. FORFEITURE
	  	10
		
	 10.4. CERTIFICATES FOR RESTRICTED STOCK
	  	10
		
	 ARTICLE 11 DIVIDEND EQUIVALENTS
	  	10
		
	 11.1 GRANT OF DIVIDEND EQUIVALENTS
	  	10
		
	 ARTICLE 12 STOCK OR OTHER STOCK-BASED AWARDS
	  	10
		
	 12.1. GRANT OF STOCK OR OTHER STOCK-BASED AWARDS
	  	10
		
	 ARTICLE 13 PROVISIONS APPLICABLE TO AWARDS
	  	11
		
	 13.1. STAND-ALONE, TANDEM, AND SUBSTITUTE AWARDS
	  	11
		
	 13.2. TERM OF AWARD
	  	11
		
	 13.3. FORM OF PAYMENT FOR AWARDS
	  	11

			
	 13.4. LIMITS ON TRANSFER
	  	11
		
	 13.5 BENEFICIARIES
	  	11
		
	 13.6. STOCK CERTIFICATES
	  	11
		
	 13.7 ACCELERATION UPON DEATH, DISABILITY OR RETIREMENT
	  	11
		
	 13.8. ACCELERATION UPON A CHANGE IN CONTROL
	  	12
		
	 13.9. ACCELERATION FOR OTHER REASONS
	  	12
		
	 13.10 EFFECT OF ACCELERATION
	  	12
		
	 13.11. QUALIFIED PERFORMANCE-BASED AWARDS
	  	12
		
	 13.12. TERMINATION OF EMPLOYMENT
	  	13
		
	 ARTICLE 14 CHANGES IN CAPITAL STRUCTURE
	  	13
		
	 14.1. GENERAL
	  	13
		
	 ARTICLE 15 AMENDMENT, MODIFICATION AND TERMINATION
	  	14
		
	 15.1. AMENDMENT, MODIFICATION AND TERMINATION
	  	14
		
	 15.2. AWARDS PREVIOUSLY GRANTED
	  	14
		
	 ARTICLE 16 GENERAL PROVISIONS
	  	14
		
	 16.1. NO RIGHTS TO AWARDS; NON-UNIFORM DETERMINATIONS
	  	14
		
	 16.2. NO SHAREHOLDER RIGHTS
	  	14
		
	 16.3. WITHHOLDING
	  	14
		
	 16.4. NO RIGHT TO CONTINUED SERVICE
	  	15
		
	 16.5. UNFUNDED STATUS OF AWARDS
	  	15
		
	 16.6. INDEMNIFICATION
	  	15
		
	 16.7. RELATIONSHIP TO OTHER BENEFITS
	  	15
		
	 16.8. EXPENSES
	  	15
		
	 16.9. TITLES AND HEADINGS
	  	15
		
	 16.10. GENDER AND NUMBER
	  	15
		
	 16.11. FRACTIONAL SHARES
	  	15
		
	 16.12. GOVERNMENT AND OTHER REGULATIONS
	  	15
		
	 16.13. GOVERNING LAW
	  	16
		
	 16.14 ADDITIONAL PROVISIONS
	  	16
		
	 16.15. NO LIMITATIONS ON RIGHTS OF COMPANY
	  	16

 SCANSOURCE, INC. 
 2002 LONG-TERM INCENTIVE PLAN 
 ARTICLE 1 
 PURPOSE 
 1.1 GENERAL. The
purpose of the ScanSource, Inc. 2002 Long-Term Incentive Plan (the “Plan”) is to promote the success, and enhance the value, of ScanSource, Inc. (the “Company”), by linking the personal interests of employees,
officers, consultants and advisors of the Company or any Affiliate (as defined below) to those of Company shareholders and by providing such persons with an incentive for outstanding performance. The Plan is further intended to provide flexibility
to the Company in its ability to motivate, attract, and retain the services of employees, officers, consultants and advisors upon whose judgment, interest, and special effort the successful conduct of the Company’s operation is largely
dependent. Accordingly, the Plan permits the grant of incentive awards from time to time to selected employees, officers, consultants and advisors. 
 ARTICLE 2 
 EFFECTIVE DATE 
 2.1 EFFECTIVE DATE. The Plan shall be effective as of the date it is approved by both the Board and the shareholders of the Company. 
 ARTICLE 3 
 DEFINITIONS 
 3.1 DEFINITIONS. When a word or phrase appears in this Plan with the initial letter capitalized, and the word or phrase does not commence a
sentence, the word or phrase shall generally be given the meaning ascribed to it in this Section or in Section 1.1 unless a clearly different meaning is required by the context. The following words and phrases shall have the following meanings:

 (a) “Affiliate” means (i) any Subsidiary or Parent, or (ii) an entity that directly or through one or
more intermediaries controls, is controlled by or is under common control with, the Company, as determined by the Committee. 
 (b) “Award” means any Option, Stock Appreciation Right, Restricted Stock Award, Performance Award, Dividend Equivalent Award, or Other Stock-Based Award, or any other right or interest relating to Stock or cash, granted to a
Participant under the Plan. 
 (c) “Award Certificate” means a written document, in such form as the Committee
prescribes from time to time, setting forth the terms and conditions of an Award. 
 (d) “Board” means the Board of
Directors of the Company. 
 (e) “Cause” as a reason for a Participant’s termination of employment shall have
the meaning assigned such term in the employment agreement, if any, between such Participant and the Company or an affiliated company, provided, however that if there is no such employment agreement in which such term is defined, “Cause”
shall mean any of the following acts by the Participant, as determined by the Board: gross neglect of duty, prolonged absence from duty without the consent of the Company, intentionally engaging in any activity that is in conflict with or adverse to
the business or other interests of the Company, or willful misconduct, misfeasance or malfeasance of duty which is reasonably determined to be detrimental to the Company. 

 (f) “Change in Control” means and includes the occurrence of any one of the
following events: 
 (i) individuals who, on the Effective Date, constitute the Board of Directors of the Company (the
“Incumbent Directors”) cease for any reason to constitute at least a majority of such Board, provided that any person becoming a director after the Effective Date and whose election or nomination for election was approved by a vote of at
least a majority of the Incumbent Directors then on the Board shall be an Incumbent Director; provided, however, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest
with respect to the election or removal of directors (“Election Contest”) or other actual or threatened solicitation of proxies or consents by or on behalf of any “person” (such term for purposes of this definition being as
defined in Section 3(a)(9) of the Exchange Act and as used in Section 13(d)(3) and 14(d)(2) of the Exchange Act) other than the Board (“Proxy Contest”), including by reason of any agreement intended to avoid or settle any
Election Contest or Proxy Contest, shall be deemed an Incumbent Director; or 
 (ii) any person is or becomes a
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of either (A) 35% or more of the then-outstanding shares of common stock of the Company (“Company Common Stock”) or
(B) securities of the Company representing 35% or more of the combined voting power of the Company’s then outstanding securities eligible to vote for the election of directors (the “Company Voting Securities”); provided, however,
that for purposes of this subsection (ii), the following acquisitions shall not constitute a Change in Control: (w) an acquisition directly from the Company, (x) an acquisition by the Company or a Subsidiary of the Company, (y) an
acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary of the Company, or (z) an acquisition pursuant to a Non-Qualifying Transaction (as defined in subsection (iii) below); or

 (iii) the consummation of a reorganization, merger, consolidation, statutory share exchange or similar form of corporate
transaction involving the Company or a Subsidiary (a “Reorganization”), or the sale or other disposition of all or substantially all of the Company’s assets (a “Sale”) or the acquisition of assets or stock of another
corporation (an “Acquisition”), unless immediately following such Reorganization, Sale or Acquisition: (A) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the outstanding
Company Common Stock and outstanding Company Voting Securities immediately prior to such Reorganization, Sale or Acquisition beneficially own, directly or indirectly, more than 55% of, respectively, the then outstanding shares of common stock and
the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Reorganization, Sale or Acquisition (including, without
limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the Company’s assets or stock either directly or through one or more subsidiaries, the “Surviving Corporation”) in
substantially the same proportions as their ownership, immediately prior to such Reorganization, Sale or Acquisition, of the outstanding Company Common Stock and the outstanding Company Voting Securities, as the case may be, and (B) no person
(other than (x) the Company or any Subsidiary of the Company, (y) the Surviving Corporation or its ultimate parent corporation, or (z) any employee benefit plan (or related trust) sponsored or maintained by any of the foregoing is the
beneficial owner, directly or indirectly, of 35% or more of the total common stock or 35% or more of the total voting power of the outstanding voting securities eligible to elect directors of the Surviving Corporation, and (C) at least a
majority of the members of the board of directors of the Surviving Corporation were Incumbent Directors at the time of the Board’s approval of the execution of the initial agreement providing for such 
  

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 Reorganization, Sale or Acquisition (any Reorganization, Sale or Acquisition which satisfies all of the
criteria specified in (A), (B) and (C) above shall be deemed to be a “Non-Qualifying Transaction”); or 
 (iv) approval by the shareholders of the Company of a complete liquidation or dissolution of the Company. 
 (g)
“Code” means the Internal Revenue Code of 1986, as amended from time to time. 
 (h) “Committee” means the
committee of the Board described in Article 4. 
 (i) “Company” means ScanSource, Inc., a South Carolina
corporation. 
 (j) “Continuous Status as a Participant” means the absence of any interruption or termination of
service as an employee, officer, consultant or advisor of the Company, as applicable. Continuous Status as a Participant shall continue to the extent provided in a written severance or employment agreement during any period for which severance
compensation payments are made to an employee, officer, consultant or advisor and shall not be considered interrupted in the case of any leave of absence authorized in writing by the Company prior to its commencement. 
 (k) “Covered Employee” means a covered employee as defined in Code Section 162(m)(3). 
 (l) “Disability” or “Disabled” shall mean any illness or other physical or mental condition of a Participant that
renders the Participant incapable of performing his customary and usual duties for the Company, or any medically determinable illness or other physical or mental condition resulting from a bodily injury, disease or mental disorder which, in the
judgment of the Committee, is permanent and continuous in nature. The Committee may require such medical or other evidence as it deems necessary to judge the nature and permanency of the Participant’s condition. Notwithstanding the above, with
respect to an Incentive Stock Option, Disability shall mean Permanent and Total Disability as defined in Section 22(e)(3) of the Code. 
 (m) “Dividend Equivalent” means a right granted to a Participant under Article 11. 
 (n) “Effective Date” has the meaning assigned such term in Section 2.1. 
 (o) “Eligible
Participant” means an employee, officer, consultant or advisor of the Company or any Affiliate. 
 (p)
“Exchange” means the Nasdaq National Market or any national securities exchange on which the Stock may from time to time be listed or traded. 
 (q) “Fair Market Value”, on any date, means (i) if the Stock is listed on a securities exchange or is traded over the Nasdaq National Market, the closing sales price on such exchange or over such system
on such date or, in the absence of reported sales on such date, the closing sales price on the immediately preceding date on which sales were reported, or (ii) if the Stock is not listed on a securities exchange or traded over the Nasdaq
National Market, the mean between the bid and offered prices as quoted by Nasdaq for such date, provided that if it is determined that the fair market value is not properly reflected by such Nasdaq quotations, Fair Market Value will be determined by
such other method as the Committee determines in good faith to be reasonable. 
 (r) “Good Reason” has the meaning
assigned such term in the employment agreement, if any, between a Participant and the Company or an Affiliate, provided, however that if there is no such 
  

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 employment agreement in which such term is defined, and unless otherwise defined in the applicable Award
Certificate, “Good Reason” shall mean any of the following acts by the Company or an Affiliate after the occurrence of a Change in Control, without the consent of the Participant (in each case, other than an isolated, insubstantial and
inadvertent action not taken in bad faith and which is remedied by the Company or the Affiliate promptly after receipt of notice thereof given by the Participant): (i) the assignment to the Participant of duties materially inconsistent with, or
a material diminution in, the Participant’s position, authority, duties or responsibilities as in effect on the date of the Change in Control, (ii) a reduction by the Company or an Affiliate in the Participant’s base salary as in
effect on the date of the Change in Control, (iii) the Company or an Affiliate requiring the Participant, without his or her consent, to be based at any office or location more than 35 miles from the location at which the Participant was
stationed immediately prior to the Change in Control, or (iv) the material breach by the Company or an Affiliate of any employment agreement between the Participant and the Company or an Affiliate. 
 (s) “Grant Date” means the date an Award is made by the Committee. 
 (t) “Incentive Stock Option” means an Option that is intended to meet the requirements of Section 422 of the Code or any
successor provision thereto. 
 (u) “Non-Qualified Stock Option” means an Option that is not an Incentive Stock
Option. 
 (v) “Option” means a right granted to a Participant under Article 7 of the Plan to purchase Stock at a
specified price during specified time periods. An Option may be either an Incentive Stock Option or a Non-Qualified Stock Option. 
 (w) “Other Stock-Based Award” means a right, granted to a Participant under Article 12, that relates to or is valued by reference to Stock or other Awards relating to Stock. 
 (x) “Parent” means a corporation which owns or beneficially owns a majority of the outstanding voting stock or voting power of
the Company. Notwithstanding the above, with respect to an Incentive Stock Option, Parent shall have the meaning set forth in Section 424(e) of the Code. 
 (y) “Participant” means a person who, as an employee, officer, consultant or advisor of the Company or any Affiliate, has been
granted an Award under the Plan; provided that in the case of the death of a Participant, the term “Participant” refers to a beneficiary designated pursuant to Section 13.5 or the legal guardian or other legal representative acting in
a fiduciary capacity on behalf of the Participant under applicable state law and court supervision. 
 (z) “Performance
Award” means Performance Shares or Performance Units granted pursuant to Article 9. 
 (aa) “Performance Share”
means any right granted to a Participant under Article 9 to a unit to be valued by reference to a designated number of Shares to be paid upon achievement of such performance goals as the Committee establishes with regard to such Performance Share.

 (bb) “Performance Unit” means a right granted to a Participant under Article 9 to a cash award, or unit valued by
reference to a designated amount of cash or property other than Shares, to be paid to the Participant upon achievement of such performance goals as the Committee establishes with regard to such Performance Unit. 
 (cc) “Plan” means the ScanSource, Inc. 2002 Long-Term Incentive Plan, as amended from time to time. 
  

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 (dd) “Qualified Performance-Based Award” means (i) a Performance Award,
Restricted Stock Award, Other Stock-Based Award or cash incentive award that is intended to qualify for the Section 162(m) Exemption and is made subject to performance goals based on Qualified Performance Criteria as set forth in
Section 13.11, or (ii) an Option or SAR having an exercise price equal to or greater than the Fair Market Value of the underlying Stock as of the Grant Date. 
 (ee) “Qualified Performance Criteria” means one or more of the performance criteria listed in Section 13.11(b) upon which
performance goals for certain Qualified Performance-Based Awards may be established by the Committee. 
 (ff) “Restricted
Stock Award” means Stock granted to a Participant under Article 10 that is subject to certain restrictions and to risk of forfeiture. 
 (gg) “Retirement” means a Participant’s termination of employment with the Company or an Affiliate with the Committee’s approval after attaining any normal or early retirement age specified in any
pension, profit sharing or other retirement program sponsored by the Company, or, in the event of the inapplicability thereof with respect to the Participant in question, as determined by the Committee in its reasonable judgment. 
 (hh) “Section 162(m) Exemption” means the exemption from the limitation on deductibility imposed by Section 162(m) of the
Code that is set forth in Section 162(m)(4)(C) of the Code or any successor provision thereto. 
 (ii) “Shares”
means shares of the Company’s Stock. If there has been an adjustment or substitution pursuant to Section 14.1, the term “Shares” shall also include any shares of stock or other securities that are substituted for Shares or into
which Shares are adjusted pursuant to Section 14.1. 
 (jj) “Stock” means the no par value common stock of the
Company and such other securities of the Company as may be substituted for Stock pursuant to Article 14. 
 (kk) “Stock
Appreciation Right” or “SAR” means a right granted to a Participant under Article 8 to receive a payment equal to the difference between the Fair Market Value of a Share as of the date of exercise of the SAR over the grant price of
the SAR, all as determined pursuant to Article 8. 
 (ll) “Subsidiary” means any corporation, limited liability
company, partnership or other entity of which a majority of the outstanding voting stock or voting power is beneficially owned directly or indirectly by the Company. Notwithstanding the above, with respect to an Incentive Stock Option, Subsidiary
shall have the meaning set forth in Section 424(f) of the Code. 
 (mm) “1933 Act” means the Securities Act of
1933, as amended from time to time. 
 (nn) “1934 Act” means the Securities Exchange Act of 1934, as amended from
time to time. 
 ARTICLE 4 
 ADMINISTRATION 
 4.1. COMMITTEE. The Plan shall be administered by a Committee appointed by the Board (which
Committee shall consist of at least two directors) or, at the discretion of the Board from time to time, the Plan may be administered by the Board. It is intended that at least two of the directors appointed to serve on the Committee shall be
“non-employee directors” (within the meaning of Rule 16b-3 promulgated under 
  

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 the 1934 Act) and “outside directors” (within the meaning of Code Section 162(m) and the regulations
thereunder) and that any such members of the Committee who do not so qualify shall abstain from participating in any decision to make or administer Awards that are made to Eligible Participants who at the time of consideration for such Award are, or
who are anticipated to be become, either (i) Covered Employees or (ii) persons subject to the short-swing profit rules of Section 16 of the 1934 Act. However, the mere fact that a Committee member shall fail to qualify under either of
the foregoing requirements or shall fail to abstain from such action shall not invalidate any Award made by the Committee which Award is otherwise validly made under the Plan. The members of the Committee shall be appointed by, and may be changed at
any time and from time to time in the discretion of, the Board. The Board may reserve to itself any or all of the authority and responsibility of the Committee under the Plan or may act as administrator of the Plan for any and all purposes. To the
extent the Board has reserved any authority and responsibility or during any time that the Board is acting as administrator of the Plan, it shall have all the powers of the Committee hereunder, and any reference herein to the Committee (other than
in this Section 4.1) shall include the Board. To the extent any action of the Board under the Plan conflicts with actions taken by the Committee, the actions of the Board shall control. 
 4.2 ACTION AND INTERPRETATIONS BY THE COMMITTEE. For purposes of administering the Plan, the Committee may from time to time adopt rules,
regulations, guidelines and procedures for carrying out the provisions and purposes of the Plan and make such other determinations, not inconsistent with the Plan, as the Committee may deem appropriate. The Committee’s interpretation of the
Plan, any Awards granted under the Plan, any Award Certificate and all decisions and determinations by the Committee with respect to the Plan are final, binding, and conclusive on all parties. Each member of the Committee is entitled to, in good
faith, rely or act upon any report or other information furnished to that member by any officer or other employee of the Company or any Affiliate, the Company’s or an Affiliate’s independent certified public accountants, Company counsel or
any executive compensation consultant or other professional retained by the Company to assist in the administration of the Plan. 
 4.3
AUTHORITY OF COMMITTEE. Except as provided below, the Committee has the exclusive power, authority and discretion to: 
 (a) Grant Awards; 
 (b) Designate Participants; 
 (c) Determine the type or types of Awards to be granted to each Participant; 
 (d) Determine the number of Awards to be granted and the number of Shares or dollar amount to which an Award will relate; 
 (e) Determine the terms and conditions of any Award granted under the Plan, including but not limited to, the exercise price, grant price,
or purchase price, any restrictions or limitations on the Award, any schedule for lapse of forfeiture restrictions or restrictions on the exercisability of an Award, and accelerations or waivers thereof, based in each case on such considerations as
the Committee in its sole discretion determines; 
 (f) Accelerate the vesting, exercisability or lapse of restrictions of any
outstanding Award, in accordance with Article 13, based in each case on such considerations as the Committee in its sole discretion determines; 
 (g) Determine whether, to what extent, and under what circumstances an Award may be settled in, or the exercise price of an Award may be paid in, cash, Stock, other Awards, or other property, or an Award may be
canceled, forfeited, or surrendered; 
  

 6 

 (h) Prescribe the form of each Award Certificate, which need not be identical for each
Participant; 
 (i) Decide all other matters that must be determined in connection with an Award; 
 (j) Establish, adopt or revise any rules, regulations, guidelines or procedures as it may deem necessary or advisable to administer the
Plan; 
 (k) Make all other decisions and determinations that may be required under the Plan or as the Committee deems
necessary or advisable to administer the Plan; 
 (l) Amend the Plan or any Award Certificate as provided herein; and

 (m) Adopt such modifications, procedures, and subplans as may be necessary or desirable to comply with provisions of the
laws of non-U.S. jurisdictions in which the Company or any Affiliate may operate, in order to assure the viability of the benefits of Awards granted to participants located in such other jurisdictions and to meet the objectives of the Plan.

 Not withstanding the above, the Board or the Committee may expressly delegate to a special committee consisting of one or more directors
who are also officers of the Company some or all of the Committee’s authority under subsections (a) through (i) above, except that no delegation of its duties and responsibilities may be made to officers of the Company with respect to
Awards to Eligible Participants who are, or who are anticipated to be become, either (i) Covered Employees or (ii) persons subject to the short-swing profit rules of Section 16 of the 1934 Act. The acts of such delegates shall be
treated hereunder as acts of the Committee and such delegates shall report to the Committee regarding the delegated duties and responsibilities. 
 4.4. AWARD CERTIFICATES. Each Award shall be evidenced by an Award Certificate. Each Award Certificate shall include such provisions, not inconsistent with the Plan, as may be specified by the Committee. 
 ARTICLE 5 
 SHARES SUBJECT TO THE
PLAN 
 5.1. NUMBER OF SHARES. Subject to adjustment as provided in Section 14.1, the aggregate number of Shares reserved and
available for Awards or which may be used to provide a basis of measurement for or to determine the value of an Award (such as with a Stock Appreciation Right or Performance Award) shall be 800,000. Not more than 20% of such aggregate number of
Shares may be granted as Awards of Restricted Stock, Performance Shares or unrestricted Stock. To the extent that Awards of Restricted Stock and Performance Shares exceed 10% of the Shares authorized under the Plan, such Awards in excess of 10%
shall either (i) be subject to a minimum vesting period of three years, or one year if the vesting is based on performance criteria other than continued employment, or (ii) be granted solely in exchange for foregone salary, bonus or other
compensation. To the extent that awards of unrestricted Stock (together with Awards of Restricted Stock or Performance Shares) exceed 10% of the Shares authorized under the Plan, such unrestricted Shares may be granted only in exchange for foregone
salary, bonus or other compensation. 
 5.2. LAPSED AWARDS. 
 (a) To the extent that an Award is canceled, terminates, expires, is forfeited or lapses for any reason, any Shares subject to the Award
will again be available for the grant of Awards under the Plan and Shares subject to Awards settled in cash will be available for the grant of Awards under the Plan. 
  

 7 

 (b) If the exercise price of an Option is satisfied by delivering Shares to the Company
(by either actual delivery or attestation), only the numbers of Shares issued in excess of the delivery or attestation shall be considered for purposes of determining the maximum number of Shares available for delivery pursuant to Awards under the
Plan, other than Incentive Stock Options. 
 5.3. STOCK DISTRIBUTED. Any Stock distributed pursuant to an Award may consist, in whole
or in part, of authorized and unissued Stock, treasury Stock or Stock purchased on the open market. 
 5.4. LIMITATION ON AWARDS.
Notwithstanding any provision in the Plan to the contrary (but subject to adjustment as provided in Section 14.1), the maximum number of Shares with respect to one or more Options and/or SARs that may be granted during any one calendar year
under the Plan to any one Participant shall be 50,000. The maximum fair market value (measured as of the Grant Date) of any Awards other than Options and SARs that may be received by any one Participant (less any consideration paid by the
Participant for such Award) during any one calendar year under the Plan shall be $3,000,000. 
 ARTICLE 6 
 ELIGIBILITY 
 6.1. GENERAL.
Awards may be granted only to Eligible Participants; except that Incentive Stock Options may not be granted to Eligible Participants who are not employees of the Company or a Parent or Subsidiary as defined in Section 424(e) and (f) of the
Code. 
 ARTICLE 7 
 STOCK OPTIONS 
 7.1. GENERAL. The Committee is authorized to grant Options to Participants on the following terms and
conditions: 
 (a) EXERCISE PRICE. The exercise price per Share under an Option shall be determined by the Committee,
provided that the exercise price for any Option shall not be less than the Fair Market Value as of the Grant Date. 
 (b)
TIME AND CONDITIONS OF EXERCISE. The Committee shall determine the time or times at which an Option may be exercised in whole or in part, subject to Section 7.1(d). The Committee shall also determine the performance or other conditions,
if any, that must be satisfied before all or part of an Option may be exercised or vested. Subject to Section 13.9, the Committee may waive any exercise or vesting provisions at any time in whole or in part based upon factors as the Committee
may determine in its sole discretion so that the Option becomes exercisable or vested at an earlier date. The Committee may permit an arrangement whereby receipt of Stock upon exercise of an Option is delayed until a specified future date.

 (c) PAYMENT. The Committee shall determine the methods by which the exercise price of an Option may be paid, the
form of payment, including, without limitation, cash, Shares, or other property (including “cashless exercise” arrangements), and the methods by which Shares shall be delivered or deemed to be delivered to Participants; provided, however,
that if Shares are used to pay the exercise price of an Option, such Shares must have been held by the Participant for at least six months. 
 (d) EXERCISE TERM. In no event may any Option be exercisable for more than ten years from the Grant Date. 
  

 8 

 7.2. INCENTIVE STOCK OPTIONS. The terms of any Incentive Stock Options granted under the Plan must
comply with the following additional rules: 
 a) LAPSE OF OPTION. An Incentive Stock Option shall lapse upon the
earliest of the following circumstances; provided, however, that the Committee may, prior to the lapse of the Incentive Stock Option under the circumstances described in subsections (3), (4), (5) and (6) below, provide in writing that the
Option will extend until a later date, but if an Option is so extended and is exercised after the dates specified in subsections (3) and (4) below, it will automatically become a Non-Qualified Stock Option: 
 (1) The expiration date set forth in the Award Certificate. 
 (2) The tenth anniversary of the Grant Date. 
 (3) Three months after termination of the Participant’s Continuous Status as a Participant for any reason other than the Participant’s Disability, death or termination for Cause. 
 (4) One year after the termination of the Participant’s Continuous Status as a Participant by reason of the Participant’s
Disability. 
 (5) One year after the termination of the Participant’s death if the Participant dies while employed, or
during the three-month period described in paragraph (3) or during the one-year period described in paragraph (4) and before the Option otherwise lapses. 
 (6) The date of the termination of the Participant’s Continuous Status as a Participant if such termination is for Cause. 

Unless the exercisability of the Incentive Stock Option is accelerated as provided in Article 13, if a Participant exercises an Option
after termination of employment, the Option may be exercised only with respect to the Shares that were otherwise vested on the Participant’s termination of employment. Upon the Participant’s death, any exercisable Incentive Stock Options
may be exercised by the Participant’s beneficiary, determined in accordance with Section 13.5. 
 (b) INDIVIDUAL
DOLLAR LIMITATION. The aggregate Fair Market Value (determined as of the Grant Date) of all Shares with respect to which Incentive Stock Options are first exercisable by a Participant in any calendar year may not exceed $100,000.00. 

(c) TEN PERCENT OWNERS. No Incentive Stock Option shall be granted to any individual who, at the Grant Date, owns stock
possessing more than ten percent of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary unless the exercise price per share of such Option is at least 110% of the Fair Market Value per Share at the
Grant Date and the Option expires no later than five years after the Grant Date. 
 (d) EXPIRATION OF AUTHORITY TO GRANT
INCENTIVE STOCK OPTIONS. No Incentive Stock Option may be granted pursuant to the Plan after the day immediately prior to the tenth anniversary of the Effective Date. 
 (e) RIGHT TO EXERCISE. During a Participant’s lifetime, an Incentive Stock Option may be exercised only by the Participant or,
in the case of the Participant’s Disability, by the Participant’s guardian or legal representative. 
  

 9 

 (f) ELIGIBLE GRANTEES. The Committee may not grant an Incentive Stock Option to a
person who is not at the Grant Date an employee of the Company or a Parent or Subsidiary. 
 ARTICLE 8 
 STOCK APPRECIATION RIGHTS 
 8.1.
GRANT OF STOCK APPRECIATION RIGHTS. The Committee is authorized to grant Stock Appreciation Rights to Participants on the following terms and conditions: 
 (a) RIGHT TO PAYMENT. Upon the exercise of a Stock Appreciation Right, the Participant to whom it is granted has the right to
receive the excess, if any, of: 
 (1) The Fair Market Value of one Share on the date of exercise; over 
 (2) The grant price of the Stock Appreciation Right as determined by the Committee, which shall not be less than the Fair Market Value of
one Share on the Grant Date in the case of any Stock Appreciation Right related to an Incentive Stock Option. 
 (b) OTHER
TERMS. All awards of Stock Appreciation Rights shall be evidenced by an Award Certificate. The terms, methods of exercise, methods of settlement, form of consideration payable in settlement, and any other terms and conditions of any Stock
Appreciation Right shall be determined by the Committee at the time of the grant of the Award and shall be reflected in the Award Certificate. 
 ARTICLE 9 
 PERFORMANCE AWARDS 
 9.1. GRANT OF PERFORMANCE AWARDS. The Committee is authorized to grant Performance Shares or Performance Units to Participants on such terms and conditions as may be selected by the Committee. The Committee
shall have the complete discretion to determine the number of Performance Shares or Performance Units granted to each Participant, subject to Section 5.4, and to designate the provisions of such Performance Awards as provided in
Section 4.3. 
 9.2. PERFORMANCE GOALS. The Committee may establish performance goals for Performance Awards which may be based
on any one or more of the Qualified Performance Criteria listed in Section 13.11(b) or any other criteria selected by the Committee. Such performance goals may be described in terms of Company-wide objectives or in terms of objectives that
relate to the performance of an Affiliate or a division, region, department or function within the Company or an Affiliate. If the Committee determines that a change in the business, operations, corporate structure or capital structure of the
Company or the manner in which the Company or an Affiliate conducts its business, or other events or circumstances render performance goals to be unsuitable, the Committee may modify such performance goals in whole or in part, as the Committee deems
appropriate. If a Participant is promoted, demoted or transferred to a different business unit or function during a performance period, the Committee may determine that the performance goals or performance period are no longer appropriate and may
(i) adjust, change or eliminate the performance goals or the applicable performance period as it deems appropriate to make such goals and period comparable to the initial goals and period, or (ii) make a cash payment to the participant in
amount determined by the Committee. The foregoing two sentences shall not apply with respect to a Performance Award that is intended to be a Qualified Performance-Based Award. 
 9.3. RIGHT TO PAYMENT. The grant of a Performance Share to a Participant will entitle the Participant to receive at a specified later time a
specified number of Shares, or the equivalent cash value, if 
  

 10 

 the performance goals established by the Committee are achieved and the other terms and conditions thereof are satisfied.
The grant of a Performance Unit to a Participant will entitle the Participant to receive at a specified later time a specified dollar value in cash or property other than Shares, variable under conditions specified in the Award, if the performance
goals in the Award are achieved and the other terms and conditions thereof are satisfied. The Committee shall set performance goals and other terms or conditions to payment of the Performance Awards in its discretion which, depending on the extent
to which they are met, will determine the number and value of the Performance Award that will be paid to the Participant. 
 9.4. OTHER
TERMS. Performance Awards may be payable in cash, Stock, or other property, and have such other terms and conditions as determined by the Committee and reflected in the Award Certificate. For purposes of determining the number of Shares to be
used in payment of a Performance Award denominated in cash but payable in whole or in part in Shares or Restricted Stock, the number of Shares to be so paid will be determined by dividing the cash value of the Award to be so paid by the Fair Market
Value of a Share on the date of determination of the amount of the Award by the Committee, or, if the Committee so directs, the date immediately preceding the date the Award is paid. 
 ARTICLE 10 
 RESTRICTED STOCK AWARDS 
 10.1. GRANT OF RESTRICTED STOCK. The Committee is authorized to make Awards of Restricted Stock to Participants in such amounts and subject to
such terms and conditions as may be selected by the Committee. 
 10.2. ISSUANCE AND RESTRICTIONS. Restricted Stock shall be subject
to such restrictions on transferability and other restrictions as the Committee may impose (including, without limitation, limitations on the right to vote Restricted Stock or the right to receive dividends on the Restricted Stock). These
restrictions may lapse separately or in combination at such times, under such circumstances, in such installments, upon the satisfaction of performance goals or otherwise, as the Committee determines at the time of the grant of the Award or
thereafter, subject to Section 13.9. Except as otherwise provided in an Award Certificate, the Participant shall have all of the rights of a shareholder with respect to the Restricted Stock. 
 10.3. FORFEITURE. Except as otherwise determined by the Committee at the time of the grant of the Award or thereafter, upon termination of
Continuous Status as a Participant during the applicable restriction period or upon failure to satisfy a performance goal during the applicable restriction period, Restricted Stock that is at that time subject to restrictions shall be forfeited;
provided, however, that the Committee may provide in any Award Certificate that restrictions or forfeiture conditions relating to Restricted Stock will be waived in whole or in part in the event of terminations resulting from specified causes, and
the Committee may in other cases waive in whole or in part restrictions or forfeiture conditions relating to Restricted Stock. 
 10.4.
CERTIFICATES FOR RESTRICTED STOCK. An Award of Restricted Stock shall be evidenced by an Award Certificate setting forth the terms, conditions, and restrictions applicable to shares of Restricted Stock. Shares of Restricted Stock shall be
delivered to the Participant at the time of grant either by book-entry registration or by delivering to the Participant, or a custodian or escrow agent (including, without limitation, the Company or one or more of its employees) designated by the
Committee, a stock certificate or certificates registered in the name of the Participant. If physical certificates representing shares of Restricted Stock are registered in the name of the Participant, such certificates must bear an appropriate
legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock. 
  

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 ARTICLE 11 
 DIVIDEND EQUIVALENTS 
 11.1 GRANT OF DIVIDEND EQUIVALENTS. The Committee is authorized to
grant Dividend Equivalents to Participants subject to such terms and conditions as may be selected by the Committee. Dividend Equivalents shall entitle the Participant to receive payments equal to dividends with respect to all or a portion of the
number of Shares subject to an Award, as determined by the Committee. The Committee may provide that Dividend Equivalents be paid or distributed when accrued or be deemed to have been reinvested in additional Shares, or otherwise reinvested.

 ARTICLE 12 
 STOCK OR
OTHER STOCK-BASED AWARDS 
 12.1. GRANT OF STOCK OR OTHER STOCK-BASED AWARDS. The Committee is authorized, subject to limitations
under applicable law, to grant to Participants such other Awards that are payable in, valued in whole or in part by reference to, or otherwise based on or related to Shares, as deemed by the Committee to be consistent with the purposes of the Plan,
including without limitation Shares awarded purely as a “bonus” and not subject to any restrictions or conditions, convertible or exchangeable debt securities, other rights convertible or exchangeable into Shares, and Awards valued by
reference to book value of Shares or the value of securities of or the performance of specified Parents or Subsidiaries. The Committee shall determine the terms and conditions of such Awards. 
 ARTICLE 13 
 PROVISIONS APPLICABLE TO AWARDS 
 13.1. STAND-ALONE, TANDEM, AND SUBSTITUTE AWARDS. Awards granted under the Plan may, in the discretion of the Committee, be granted either alone
or in addition to, in tandem with, or in substitution for, any other Award granted under the Plan. If an Award is granted in substitution for another Award, the Committee may require the surrender of such other Award in consideration of the grant of
the new Award. Awards granted in addition to or in tandem with other Awards may be granted either at the same time as or at a different time from the grant of such other Awards. 
 13.2. TERM OF AWARD. The term of each Award shall be for the period as determined by the Committee, provided that in no event shall the term of
any Incentive Stock Option or a Stock Appreciation Right granted in tandem with the Incentive Stock Option exceed a period of ten years from its Grant Date (or, if Section 7.2(c) applies, five years from its Grant Date). 
 13.3. FORM OF PAYMENT FOR AWARDS. Subject to the terms of the Plan and any applicable law or Award Certificate, payments or transfers to be made
by the Company or an Affiliate on the grant or exercise of an Award may be made in such form as the Committee determines at or after the Grant Date, including without limitation, cash, Stock, other Awards, or other property, or any combination, and
may be made in a single payment or transfer, in installments, or on a deferred basis, in each case determined in accordance with rules adopted by, and at the discretion of, the Committee. 
 13.4. LIMITS ON TRANSFER. No right or interest of a Participant in any unexercised or restricted Award may be pledged, encumbered, or hypothecated
to or in favor of any party other than the Company or an Affiliate, or shall be subject to any lien, obligation, or liability of such Participant to any other party other than the Company or an Affiliate. No unexercised or restricted Award shall be
assignable or transferable by a Participant other than by will or the laws of descent and distribution or, except in the case of an Incentive Stock Option, pursuant to a domestic relations order that would satisfy Section 414(p)(1)(A) of the
Code if such Section applied to an Award under the Plan; provided, however, that the Committee may (but need not) permit other transfers where the Committee concludes that such transferability (i) does not result in accelerated taxation,
(ii) does not cause any Option intended to be an Incentive Stock Option to fail to be described in Code Section 422(b), and (iii) is otherwise appropriate and desirable, taking into account any factors deemed relevant, including
without limitation, state or federal tax or securities laws applicable to transferable Awards. 
  

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 13.5 BENEFICIARIES. Notwithstanding Section 13.4, a Participant may, in the manner determined
by the Committee, designate a beneficiary to exercise the rights of the Participant and to receive any distribution with respect to any Award upon the Participant’s death. A beneficiary, legal guardian, legal representative, or other person
claiming any rights under the Plan is subject to all terms and conditions of the Plan and any Award Certificate applicable to the Participant, except to the extent the Plan and Award Certificate otherwise provide, and to any additional restrictions
deemed necessary or appropriate by the Committee. If no beneficiary has been designated or survives the Participant, payment shall be made to the Participant’s estate. Subject to the foregoing, a beneficiary designation may be changed or
revoked by a Participant at any time provided the change or revocation is filed with the Committee. 
 13.6. STOCK CERTIFICATES. All
Stock issuable under the Plan is subject to any stop-transfer orders and other restrictions as the Committee deems necessary or advisable to comply with federal or state securities laws, rules and regulations and the rules of any national securities
exchange or automated quotation system on which the Stock is listed, quoted, or traded. The Committee may place legends on any Stock certificate or issue instructions to the transfer agent to reference restrictions applicable to the Stock.

 13.7 ACCELERATION UPON DEATH, DISABILITY OR RETIREMENT. Notwithstanding any other provision in the Plan or any Participant’s
Award Certificate to the contrary, upon the Participant’s death or Disability during his Continuous Status as a Participant, or upon the Participant’s Retirement, all of such Participant’s outstanding Options, Stock Appreciation
Rights, and other Awards in the nature of rights that may be exercised shall become fully exercisable and all restrictions on the Participant’s outstanding Awards shall lapse. Any Option or Stock Appreciation Rights Awards shall thereafter
continue or lapse in accordance with the other provisions of the Plan and the Award Certificate. To the extent that this provision causes Incentive Stock Options to exceed the dollar limitation set forth in Section 7.2(b), the excess Options
shall be deemed to be Non-Qualified Stock Options. 
 13.8. ACCELERATION UPON A CHANGE IN CONTROL. Except as otherwise provided in the
Award Certificate, all of a Participant’s outstanding Options and other Awards in the nature of rights that may be exercised shall become fully exercisable and all restrictions on the Participant’s outstanding Awards shall lapse if the
Participant’s employment is terminated without Cause or the Participant resigns for Good Reason within 12 months after the effective date of a Change in Control. Any Option or Stock Appreciation Rights Awards shall thereafter continue or lapse
in accordance with the other provisions of the Plan and the Award Certificate. 
 13.9. ACCELERATION FOR OTHER REASONS. Regardless of
whether an event has occurred as described in Section 13.7 or 13.8 above, the Committee may in its sole discretion at any time determine that, upon the termination of service of a Participant for any reason, or the occurrence of a Change in
Control, all or a portion of such Participant’s Options and other Awards in the nature of rights that may be exercised shall become fully or partially exercisable, and/ or that all or a part of the restrictions on all or a portion of the
Participant’s outstanding Awards shall lapse, in each case, as of such date as the Committee may, in its sole discretion, declare. The Committee may in its sole discretion at any time accelerate the vesting of Awards for any other reason,
unless the aggregate number of Shares with respect to which such acceleration occurs exceeds 5% of the total number of Shares authorized for issuance under Section 5.1 of the Plan. The Committee may discriminate among Participants and among
Awards granted to a Participant in exercising its discretion pursuant to this Section 13.9. 
 13.10 EFFECT OF ACCELERATION. If
an Award is accelerated under Section 13.8 or Section 13.9, the Committee may, in its sole discretion, provide (i) that the Award will expire after a designated period of time after such acceleration to the extent not then exercised,
(ii) that the Award will be settled in cash rather than Stock, (iii) that the Award will be assumed by another party to a transaction giving rise to 
  

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 the acceleration or otherwise be equitably converted or substituted in connection with such transaction, (iv) that
the Award may be settled by payment in cash or cash equivalents equal to the excess of the Fair Market Value of the underlying Stock, as of a specified date associated with the transaction, over the exercise price of the Award, or (v) any
combination of the foregoing. The Committee’s determination need not be uniform and may be different for different Participants whether or not such Participants are similarly situated. To the extent that such acceleration causes Incentive Stock
Options to exceed the dollar limitation set forth in Section 7.2(b), the excess Options shall be deemed to be Non-Qualified Stock Options. 
 13.11. QUALIFIED PERFORMANCE-BASED AWARDS. 
 (a) The provisions of the Plan are intended to ensure that all
Options and Stock Appreciation Rights granted hereunder to any Covered Employee qualify for the Section 162(m) Exemption. 
 (b) When granting any Performance Award, Restricted Stock Award, Other Stock-Based Award (other than Options or SARs), or any cash incentive award, the Committee may designate such Award as a Qualified Performance-Based Award, based upon a
determination that the recipient is or may be a Covered Employee with respect to such Award, and the Committee wishes such Award to qualify for the Section 162(m) Exemption. If an Award is so designated, the Committee shall establish
performance goals for such Award within the time period prescribed by Section 162(m) of the Code based on one or more of the following Qualified Performance Criteria, which may be expressed in terms of Company-wide objectives or in terms of
objectives that relate to the performance of an Affiliate or a division, region, department or function within the Company or an Affiliate: (1) earnings per share, (2) EBITDA (earnings before interest, taxes, depreciation and
amortization), (3) EBIT (earnings before interest and taxes), (4) economic profit, (5) cash flow, (6) sales growth, (7) net profit before tax, (8) gross profit, (9) operating income or profit, (10) return on
equity, (11) return on assets, (12) return on capital, (13) changes in working capital, or (14) shareholder return. 
 (c) Each Qualified Performance-Based Award (other than an Option or SAR) shall be earned, vested and payable (as applicable) only upon the achievement of performance goals established by the Committee based upon one
or more of the Qualified Performance Criteria, together with the satisfaction of any other conditions, such as continued employment, as the Committee may determine to be appropriate; provided, however, that the Committee may provide, either in
connection with the grant thereof or by amendment thereafter, that achievement of such performance goals will be waived upon the death or Disability of the Participant, or upon termination of the Participant’s employment without Cause or for
Good Reason within 12 months after the effective date of a Change in Control. 
 (d) Any payment of a Qualified
Performance-Based Award granted with performance goals shall be conditioned on the written certification of the Committee in each case that the performance goals and any other material conditions were satisfied. Except as specifically provided in
subsection (c), no Qualified Performance-Based Award may be amended, nor may the Committee exercise any discretionary authority it may otherwise have under the Plan with respect to a Qualified Performance-Based Award under the Plan, in any manner to
waive the achievement of the applicable performance goal based on Qualified Performance Criteria or to increase the amount payable pursuant thereto or the value thereof, or otherwise in a manner that would cause the Qualified Performance-Based Award
to cease to qualify for the Section 162(m) Exemption. 
 (e) Section 5.4 sets forth the maximum number of Shares or
dollar value that may be granted in any one-year period to a Participant in designated forms of Qualified Performance-Based Awards. 
 13.12.
TERMINATION OF EMPLOYMENT. Whether military, government or other service or other leave of absence shall constitute a termination of employment shall be determined in each case by the 
  

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 Committee at its discretion, and any determination by the Committee shall be final and conclusive. A Participant’s
Continuous Status as a Participant shall not be deemed to terminate (i) in a circumstance in which a Participant transfers from the Company to an Affiliate, transfers from an Affiliate to the Company, or transfers from one Affiliate to another
Affiliate, or (ii) in the discretion of the Committee as specified at or prior to such occurrence, in the case of a spin-off, sale or disposition of the Participant’s employer from the Company or any Affiliate. To the extent that this
provision causes Incentive Stock Options to extend beyond three months from the date a Participant is deemed to be an employee of the Company, a Parent or Subsidiary for purposes of Sections 424(e) and 424(f) of the Code, the Options held by such
Participant shall be deemed to be Non-Qualified 
 ARTICLE 14 
 CHANGES IN CAPITAL STRUCTURE 
 14.1. GENERAL. In the event of a corporate
event or transaction involving the Company (including, without limitation, any stock dividend, stock split, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination or exchange of shares),
the authorization limits under Section 5.1 and 5.4 shall be adjusted proportionately, and the Committee may adjust Awards to preserve the benefits or potential benefits of the Awards. Action by the Committee may include: (i) adjustment of
the number and kind of shares which may be delivered under the Plan; (ii) adjustment of the number and kind of shares subject to outstanding Awards; (iii) adjustment of the exercise price of outstanding Awards or the measure to be used to
determine the amount of the benefit payable on an Award; and (iv) any other adjustments that the Committee determines to be equitable. In addition, the Committee may, in its sole discretion, provide (i) that Awards will be settled in cash
rather than Stock, (ii) that Awards will become immediately vested and exercisable and will expire after a designated period of time to the extent not then exercised, (iii) that Awards will be assumed by another party to a transaction or
otherwise be equitably converted or substituted in connection with such transaction, (iv) that outstanding Awards may be settled by payment in cash or cash equivalents equal to the excess of the Fair Market Value of the underlying Stock, as of
a specified date associated with the transaction, over the exercise price of the Award, or (v) any combination of the foregoing. The Committee’s determination need not be uniform and may be different for different Participants whether or
not such Participants are similarly situated. Without limiting the foregoing, in the event of a subdivision of the outstanding Stock (stock-split), a declaration of a dividend payable in Shares, or a combination or consolidation of the outstanding
Stock into a lesser number of Shares, the authorization limits under Section 5.1 and 5.4 shall automatically be adjusted proportionately, and the Shares then subject to each Award shall automatically be adjusted proportionately without any
change in the aggregate purchase price therefor. 
 ARTICLE 15 
 AMENDMENT, MODIFICATION AND TERMINATION 
 15.1. AMENDMENT, MODIFICATION AND
TERMINATION. The Board or the Committee may, at any time and from time to time, amend, modify or terminate the Plan without shareholder approval; provided, however, that if an amendment to the Plan would, in the reasonable opinion of the Board
or the Committee, either (i) materially increase the benefits accruing to Participants, (ii) materially increase the number of Shares issuable under the Plan, (iii) materially modify the requirements for eligibility, or
(iv) otherwise constitute a material amendment requiring shareholder approval under applicable laws, policies or regulations, then such amendment shall be subject to shareholder approval; and provided, further, that the Board or Committee may
condition any other amendment or modification on the approval of shareholders of the Company for any reason, including by reason of such approval being necessary or deemed advisable to (i) permit Awards made hereunder to be exempt from
liability under Section 16(b) of the 1934 Act, (ii) to comply with the listing or other requirements of an Exchange, or (iii) to satisfy any other tax, securities or other applicable laws, policies or regulations. 
 15.2. AWARDS PREVIOUSLY GRANTED. At any time and from time to time, the Committee may 
  

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 amend, modify or terminate any outstanding Award without approval of the Participant; provided, however: 
 (a) Subject to the terms of the applicable Award Certificate, such amendment, modification or termination shall not, without the
Participant’s consent, reduce or diminish the value of such Award determined as if the Award had been exercised, vested, cashed in or otherwise settled on the date of such amendment or termination (with the per-share value of an Option or Stock
Appreciation Right for this purpose being calculated as the excess, if any, of the Fair Market Value as of the date of such amendment or termination over the exercise or base price of such Award); 
 (b) The original term of any Option may not be extended without the prior approval of the shareholders of the Company; 
 (c) Except as otherwise provided in Article 14, the exercise price of any Option may not be reduced, directly or indirectly, without the
prior approval of the shareholders of the Company; and 
 (d) No termination, amendment, or modification of the Plan shall
adversely affect any Award previously granted under the Plan, without the written consent of the Participant affected thereby. 
 ARTICLE
16 
 GENERAL PROVISIONS 
 16.1. NO RIGHTS TO AWARDS; NON-UNIFORM DETERMINATIONS. No Participant or any Eligible Participant shall have any claim to be granted any Award under the Plan. Neither the Company, its Affiliates nor the Committee is obligated to
treat Participants or Eligible Participants uniformly, and determinations made under the Plan may be made by the Committee selectively among Eligible Participants who receive, or are eligible to receive, Awards (whether or not such Eligible
Participants are similarly situated). 
 16.2. NO SHAREHOLDER RIGHTS. No Award gives a Participant any of the rights of a shareholder
of the Company unless and until Shares are in fact issued to such person in connection with such Award. 
 16.3. WITHHOLDING. The
Company or any Affiliate shall have the authority and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy federal, state, and local taxes (including the Participant’s FICA
obligation) required by law to be withheld with respect to any exercise, lapse of restriction or other taxable event arising as a result of the Plan. If Shares are surrendered to the Company to satisfy withholding obligations in excess of the
minimum withholding obligation, such Shares must have been held by the Participant as fully vested shares for at least six months. With respect to withholding required upon any taxable event under the Plan, the Committee may, at the time the Award
is granted or thereafter, require or permit that any such withholding requirement be satisfied, in whole or in part, by withholding from the Award Shares having a Fair Market Value on the date of withholding equal to the minimum amount (and not any
greater amount) required to be withheld for tax purposes, all in accordance with such procedures as the Committee establishes. 
 16.4. NO
RIGHT TO CONTINUED SERVICE. Nothing in the Plan, any Award Certificate or any other document or statement made with respect to the Plan, shall interfere with or limit in any way the right of the Company or any Affiliate to terminate any
Participant’s employment or status as an officer, consultant or advisor at any time, nor confer upon any Participant any right to continue as an employee, officer, consultant or advisor of the Company or any Affiliate, whether for the duration
of a Participant’s Award or otherwise. 
  

 16 

 16.5. UNFUNDED STATUS OF AWARDS. The Plan is intended to be an “unfunded” plan for
incentive and deferred compensation. With respect to any payments not yet made to a Participant pursuant to an Award, nothing contained in the Plan or any Award Certificate shall give the Participant any rights that are greater than those of a
general creditor of the Company or any Affiliate. 
 16.6. INDEMNIFICATION. To the extent allowable under applicable law, each member
of the Committee shall be indemnified and held harmless by the Company from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by such member in connection with or resulting from any claim, action, suit, or
proceeding to which such member may be a party or in which he may be involved by reason of any action or failure to act under the Plan and against and from any and all amounts paid by such member in satisfaction of judgment in such action, suit, or
proceeding against him provided he gives the Company an opportunity, at its own expense, to handle and defend the same before he undertakes to handle and defend it on his own behalf. The foregoing right of indemnification shall not be exclusive of
any other rights of indemnification to which such persons may be entitled under the Company’s Certificate of Incorporation or Bylaws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them
harmless. 
 16.7. RELATIONSHIP TO OTHER BENEFITS. No payment under the Plan shall be taken into account in determining any benefits
under any pension, retirement, savings, profit sharing, group insurance, welfare or benefit plan of the Company or any Affiliate unless provided otherwise in such other plan. 
 16.8. EXPENSES. The expenses of administering the Plan shall be borne by the Company and its Affiliates. 
 16.9. TITLES AND HEADINGS. The titles and headings of the Sections in the Plan are for convenience of reference only, and in the event of any
conflict, the text of the Plan, rather than such titles or headings, shall control. 
 16.10. GENDER AND NUMBER. Except where
otherwise indicated by the context, any masculine term used herein also shall include the feminine; the plural shall include the singular and the singular shall include the plural. 
 16.11. FRACTIONAL SHARES. No fractional Shares shall be issued and the Committee shall determine, in its discretion, whether cash shall be given
in lieu of fractional Shares or whether such fractional Shares shall be eliminated by rounding up. 
 16.12. GOVERNMENT AND OTHER
REGULATIONS. 
 (a) Notwithstanding any other provision of the Plan, no Participant who acquires Shares pursuant to the
Plan may, during any period of time that such Participant is an affiliate of the Company (within the meaning of the rules and regulations of the Securities and Exchange Commission under the 1933 Act), sell such Shares, unless such offer and sale is
made (i) pursuant to an effective registration statement under the 1933 Act, which is current and includes the Shares to be sold, or (ii) pursuant to an appropriate exemption from the registration requirement of the 1933 Act, such as that
set forth in Rule 144 promulgated under the 1933 Act. 
 (b) Notwithstanding any other provision of the Plan, if at any time
the Committee shall determine that the registration, listing or qualification of the Shares covered by an Award upon any Exchange or under any foreign, federal, state or local law or practice, or the consent or approval of any governmental
regulatory body, is necessary or desirable as a condition of, or in connection with, the granting of such Award or the purchase or receipt of Shares thereunder, no Shares may be 
  

 17 

 purchased, delivered or received pursuant to such Award unless and until such registration, listing,
qualification, consent or approval shall have been effected or obtained free of any condition not acceptable to the Committee. Any Participant receiving or purchasing Shares pursuant to an Award shall make such representations and agreements and
furnish such information as the Committee may request to assure compliance with the foregoing or any other applicable legal requirements. The Company shall not be required to issue or deliver any certificate or certificates for Shares under the Plan
prior to the Committee’s determination that all related requirements have been fulfilled. The Company shall in no event be obligated to register any securities pursuant to the 1933 Act or applicable state or foreign law or to take any other
action in order to cause the issuance and delivery of such certificates to comply with any such law, regulation or requirement. 
 16.13.
GOVERNING LAW. To the extent not governed by federal law, the Plan and all Award Certificates shall be construed in accordance with and governed by the laws of the State of South Carolina. 
 16.14 ADDITIONAL PROVISIONS. Each Award Certificate may contain such other terms and conditions as the Committee may determine; provided that such
other terms and conditions are not inconsistent with the provisions of the Plan. 
 16.15. NO LIMITATIONS ON RIGHTS OF COMPANY. The
grant of any Award shall not in any way affect the right or power of the Company to make adjustments, reclassification or changes in its capital or business structure or to merge, consolidate, dissolve, liquidate, sell or transfer all or any part of
its business or assets. The Plan shall not restrict the authority of the Company, for proper corporate purposes, to draft or assume Awards, other than under the Plan, to or with respect to any person. If the Committee so directs, the Company may
issue or transfer Shares to an Affiliate, for such lawful consideration as the Committee may specify, upon the condition or understanding that the Affiliate will transfer such Shares to a Participant in accordance with the terms of an Award granted
to such Participant and specified by the Committee pursuant to the provisions of the Plan. 
 The foregoing is hereby acknowledged as being
the ScanSource, Inc. 2002 Long-Term Incentive Plan as adopted by the Company’s shareholders on December 5, 2002 and as amended by the Company’s shareholders on December 1, 2005. 
  

 18

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