Document:

2004 Equity Incentive Plan

 Exhibit 10.2 
  
 FEATHERLITE, INC. 
 2004 EQUITY INCENTIVE PLAN 
  
 SECTION 1.

 DEFINITIONS 
  
 As used herein, the following terms shall have the meanings indicated below: 
  

	(a)	“Affiliates” shall mean a Parent or Subsidiary of the Company. 

  

	(b)	“Committee” shall mean a Committee of two or more directors who shall be appointed by and serve at the pleasure of the Board. If the Company’s securities are
registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended, then, to the extent necessary for compliance with Rule 16b-3, or any successor provision, each of the members of the Committee shall be a “non-employee
director.” Solely for purposes of this Section 1(a), “non-employee director” shall have the same meaning as set forth in Rule 16b-3, or any successor provision, as then in effect, of the General Rules and Regulations under the
Securities Exchange Act of 1934, as amended. 

  

	(c)	The “Company” shall mean Featherlite, Inc., a Minnesota corporation. 

  

	(d)	“Fair Market Value” as of any date shall mean (i) if such stock is listed on the Nasdaq National Market, Nasdaq SmallCap Market, or an established stock exchange,
the price of such stock at the close of the regular trading session of such market or exchange on such date, as reported by The Wall Street Journal or a comparable reporting service, or, if no sale of such stock shall have occurred on such
date, on the next preceding day on which there was a sale of stock; (ii) if such stock is not so listed on the Nasdaq National Market, Nasdaq SmallCap Market, or an established stock exchange, the average of the closing “bid” and
“asked” prices quoted by the OTC Bulletin Board, the National Quotation Bureau, or any comparable reporting service on such date or, if there are no quoted “bid” and “asked” prices on such date, on the next preceding
date for which there are such quotes; or (iii) if such stock is not publicly traded as of such date, the per share value as determined by the Board, or the Committee, in its sole discretion by applying principles of valuation with respect to the
Company’s Common Stock. 

  

	(e)	The “Internal Revenue Code” is the Internal Revenue Code of 1986, as amended from time to time. 

  

	(f)	The “Participant” means (i) an employee of the Company or any Subsidiary to whom an incentive stock option has been granted pursuant to Section 9, (ii) a consultant
or advisor to or director, employee or officer of the Company or any Subsidiary to whom a nonqualified stock option has been granted pursuant to Section 10, or (iii) a consultant or advisor to, or director, employee or officer of the Company or any
Subsidiary to whom a stock award has been granted pursuant to Section 17. 

  

	(g)	“Parent” shall mean any corporation which owns, directly or indirectly in an unbroken chain, fifty percent (50%) or more of the total voting power of the
Company’s outstanding stock. 

  

	(h)	The “Plan” means the Featherlite, Inc. 2004 Equity Incentive Plan, as amended from time to time, including the form of Option and Award Agreements as they may be
modified by the Board from time to time. 

  

	(i)	“Stock” shall mean Common Stock of the Company (subject to adjustment as described in Section 12) reserved for incentive and nonqualified stock options and stock
awards pursuant to this Plan. 

  

	(j)	A “Subsidiary” shall mean any corporation of which fifty percent (50%) or more of the total voting power of outstanding stock is owned, directly or indirectly in an
unbroken chain, by the Company. 

 SECTION 2. 
 PURPOSE 
  
 The
purpose of the Plan is to promote the success of the Company and its Subsidiaries by facilitating the employment and retention of competent personnel and by furnishing incentive to officers, directors, employees, consultants, and advisors upon whose
efforts the success of the Company and its Subsidiaries will depend to a large degree. 
  
 It is the intention of the Company to carry out the Plan through the granting of stock options which will qualify as “incentive stock options” under the provisions of Section 422 of the Internal Revenue
Code, or any successor provision, pursuant to Section 9 of this Plan, through the granting of “nonqualified” stock options pursuant to Section 10 of this Plan, and through the granting of stock awards pursuant to Section 17 of this Plan.
Adoption of this Plan shall be and is expressly subject to the condition of approval by the shareholders of the Company within twelve (12) months before or after the adoption of the Plan by the Board of Directors. 
  
 SECTION 3. 
 EFFECTIVE DATE OF PLAN 
  
 The effective date of the Plan is the date it is adopted by the Board of Directors, subject to approval by the shareholders of the Company as required in Section 2. 
  
 SECTION 4. 
 ADMINISTRATION 
  
 The Plan shall be administered by the Board of Directors of the Company (hereinafter referred to as the “Board”) or by a Committee which may be appointed by the Board from time to time to administer the Plan
(collectively referred to as the “Administrator”). The Administrator shall have all of the powers vested in it under the provisions of the Plan, including but not limited to exclusive authority (where applicable and within the limitations
described herein) to determine, in its sole discretion, whether an incentive stock option, nonqualified stock option or stock award shall be granted, the individuals to whom, and the time or times at which, options and awards shall be granted, the
number of shares subject to each option or award, the option price, and terms and conditions of each option or award. The Administrator shall have full power and authority to administer and interpret the Plan, to make and amend rules, regulations
and guidelines for administering the Plan, to prescribe the form and conditions of the respective stock option and stock award agreements (which may vary from Participant to Participant) evidencing each option or award and to make all other
determinations necessary or advisable for the administration of the Plan. The Administrator’s interpretation of the Plan, and all actions taken and determinations made by the Administrator pursuant to the power vested in it hereunder, shall be
conclusive and binding on all parties concerned. 
  
 No member of
the Board or the Committee shall be liable for any action taken or determination made in good faith in connection with the administration of the Plan. In the event the Board appoints a Committee as provided hereunder, any action of the Committee
with respect to the administration of the Plan shall be taken pursuant to a majority vote of the Committee members or pursuant to the written resolution of all Committee members. 
  
 SECTION 5. 
 PARTICIPANTS 
  
 The Administrator shall
from time to time, at its discretion and without approval of the shareholders, designate those employees to whom incentive stock options shall be granted pursuant to Section 9 of the Plan; those employees, officers, directors, consultants and
advisors of the Company or of any Subsidiary to whom nonqualified stock options shall be granted pursuant to Section 10 of the Plan; and those employees, officers, directors, consultants and advisors of the Company or any Subsidiary to whom stock
awards shall be granted pursuant to Section 17 of the Plan; provided, however, that consultants or advisors shall not be eligible to receive stock options or stock awards hereunder unless such consultant or advisor renders bona fide services to the
Company or Subsidiary and such services are not in connection with the offer or sale of securities in a capital raising transaction and do not directly or indirectly promote or maintain a market for the Company’s securities. The Administrator
may grant additional incentive stock options, nonqualified stock options and stock awards under this Plan to some or all Participants then holding options or awards or may grant options and awards solely or partially to new Participants. In
designating Participants, the Administrator shall also determine the number of shares to be optioned or awarded to each such Participant. The Administrator may from time to time designate individuals as being ineligible to participate in the Plan.

  

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 SECTION 6. 
 STOCK 
  
 The Stock
to be optioned or awarded under this Plan shall consist of authorized but unissued shares of Stock.
                                        
(            ) shares of Stock shall be reserved and available for stock options and stock awards under the Plan; provided, however, that the total number of shares of Stock reserved
for options and stock awards under this Plan shall be subject to adjustment as provided in Section 12 of the Plan. In the event (i) any portion of an outstanding stock option or stock award under the Plan for any reason expires, (ii) any portion of
an outstanding stock option is terminated prior to the exercise of such option, or (iii) any portion of a stock award is terminated prior to the lapsing of any risks of forfeiture on such stock, the shares of Stock allocable to such portion of the
option or award shall continue to be reserved for stock options and stock awards under the Plan and may be optioned or awarded hereunder. 
  
 SECTION 7. 
 DURATION OF PLAN

  
 Incentive stock options may be granted pursuant to the
Plan from time to time during a period of ten (10) years from the effective date as defined in Section 3. Nonqualified stock options and stock awards may be granted pursuant to the Plan from time to time after the effective date of the Plan and
until the Plan is discontinued or terminated by the Board. Any incentive stock option granted during such ten-year period and any nonqualified stock option or stock award granted prior to the termination of the Plan by the Board shall remain in full
force and effect until the expiration of the option or award as specified in the written stock option or stock award agreement and shall remain subject to the terms and conditions of this Plan. 
  
 SECTION 8. 
 PAYMENT 
  
 Participants may pay for shares upon exercise of stock options granted pursuant to this Plan with cash, personal check, certified check or, if approved by the Administrator in its sole discretion, previously-owned
shares of the Company’s Common Stock valued at such Stock’s then Fair Market Value, or such other form of payment as may be authorized by the Administrator. The Administrator may, in its sole discretion, limit the forms of payment
available to the Participant and may exercise such discretion any time prior to the termination of the option granted to the Participant or upon any exercise of the option by the Participant. “Previously-owned shares” means shares of the
Company’s Common Stock which the Participant has owned for at least six (6) months prior to the exercise of the stock option, or for such other period of time as may be required by generally accepted accounting principles. 
  
 With respect to payment in the form of Common Stock of the Company, the
Administrator may require advance approval or adopt such rules as it deems necessary to assure compliance with Rule 16b-3, or any successor provision, as then in effect, of the General Rules and Regulations under the Securities Exchange Act of 1934,
if applicable. 
  
 SECTION 9. 
 TERMS AND CONDITIONS OF INCENTIVE STOCK OPTIONS 
  
 Each incentive stock option granted pursuant to this Section 9 shall be evidenced by a written stock option agreement (the “Option Agreement”).
The Option Agreement shall be in such form as may be approved from time to time by the Administrator and may vary from Participant to Participant; provided, however, that each Participant and each Option Agreement shall comply with and be subject to
the following terms and conditions: 
  

	 	(a)	Number of Shares and Option Price. The Option Agreement shall state the total number of shares covered by the incentive stock option. To the extent required to qualify the
Option as an incentive stock option under Section 422 of the Internal Revenue Code, or any successor provision, the option price per share shall not be less than one hundred percent (100%) of the Fair Market Value of the Common Stock per share on
the date the Administrator grants the option; provided, however, that if a Participant owns stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of its Parent or any Subsidiary,
the option price per share of an incentive stock option granted to such Participant shall not be less than one hundred ten percent (110%) of the Fair Market Value of the Common Stock per share on the date of the grant of the option. The
Administrator shall have full authority and discretion in establishing the option price and shall be fully protected in so doing. 

  

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	 	(b)	Term and Exercisability of Incentive Stock Option. The term during which any incentive stock option granted under the Plan may be exercised shall be established in each case
by the Administrator. To the extent required to qualify the Option as an incentive stock option under Section 422 of the Internal Revenue Code, or any successor provision, in no event shall any incentive stock option be exercisable during a term of
more than ten (10) years from the date on which it is granted; provided, however, that if a Participant owns stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of its Parent or
any Subsidiary, the incentive stock option granted to such Participant shall be exercisable during a term of not more than five (5) years from the date on which it is granted. The Option Agreement shall state when the incentive stock option becomes
exercisable and shall also state the maximum term during which the option may be exercised. In the event an incentive stock option is exercisable immediately, the manner of exercise of the option in the event it is not exercised in full immediately
shall be specified in the Option Agreement. The Administrator may accelerate the exercise date of any incentive stock option granted hereunder which is not immediately exercisable as of the date of grant. 

  

	 	(c)	Withholding. The Company or its Subsidiary shall be entitled to withhold and deduct from future wages of the Participant all legally required amounts necessary to satisfy any
and all withholding and employment-related taxes attributable to the Participant’s exercise of an incentive stock option or a “disqualifying disposition” of shares acquired through the exercise of an incentive stock option as defined
in Code Section 421(b). In the event the Participant is required under the Option Agreement to pay the Company or Subsidiary, or make arrangements satisfactory to the Company or Subsidiary respecting payment of, such withholding and
employment-related taxes, the Administrator may, in its discretion and pursuant to such rules as it may adopt, permit the Participant to satisfy such obligation, in whole or in part, by delivering shares of the Company’s Common Stock or by
electing to have the Company withhold shares of Common Stock otherwise issuable to the Participant having a Fair Market Value equal to the minimum required tax withholding, based on the minimum statutory withholding rates for federal and state tax
purposes, including payroll taxes, that are applicable to the supplemental income resulting from the exercise of the incentive stock option or disqualifying disposition. In no event may the Company or any Subsidiary withhold shares having a Fair
Market Value in excess of such statutory minimum required tax withholding. The Participant’s election to have shares withheld for this purpose shall be made on or before the date the option is exercised or, if later, the date that the amount of
tax to be withheld is determined under applicable tax law. Such election shall be approved by the Administrator and otherwise comply with such rules as the Administrator may adopt to assure compliance with Rule 16b-3, or any successor provision, as
then in effect, of the General Rules and Regulations under the Securities Exchange Act of 1934, if applicable. 

  

	 	(d)	Other Provisions. The Option Agreement authorized under this Section 9 shall contain such other provisions as the Administrator shall deem advisable. Any such Option
Agreement shall contain such limitations and restrictions upon the exercise of the option as shall be necessary to ensure that such option will be considered an “incentive stock option” as defined in Section 422 of the Internal Revenue
Code or to conform to any change therein. 

  
 SECTION 10. 
 TERMS AND CONDITIONS OF NONQUALIFIED STOCK OPTIONS 
  
 Each nonqualified stock option granted pursuant to this Section 10 shall be
evidenced by a written Option Agreement. The Option Agreement shall be in such form as may be approved from time to time by the Administrator and may vary from Participant to Participant; provided, however, that each Participant and each Option
Agreement shall comply with and be subject to the following terms and conditions: 
  

	 	(a)	Number of Shares and Option Price. The Option Agreement shall state the total number of shares covered by the nonqualified stock option. Unless otherwise determined by the
Administrator, the option price per share shall be one hundred percent (100%) of the Fair Market Value of the Common Stock per share on the date the Administrator grants the option; provided, however, that the option price may not be less than
eighty-five percent (85%) of the Fair Market Value of the Common Stock per share on the date of grant. 

  

	 	(b)	Term and Exercisability of Nonqualified Stock Option. The term during which any nonqualified stock option granted under the Plan may be exercised shall be established in each
case by the Administrator. The Option Agreement shall state when the nonqualified stock option becomes exercisable and shall also state the maximum term during which the option may be exercised. In the event a nonqualified stock option is

  

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 exercisable immediately, the manner of exercise of the option in the event it is not exercised in full
immediately shall be specified in the Option Agreement. The Administrator may accelerate the exercise date of any nonqualified stock option granted hereunder which is not immediately exercisable as of the date of grant. 
  

	 	(c)	Withholding. The Company or its Subsidiary shall be entitled to withhold and deduct from future wages of the Participant all legally required amounts necessary to satisfy any
and all withholding and employment-related taxes attributable to the Participant’s exercise of a nonqualified stock option. In the event the Participant is required under the Option Agreement to pay the Company or Subsidiary, or make
arrangements satisfactory to the Company or Subsidiary respecting payment of, such withholding and employment-related taxes, the Administrator may, in its discretion and pursuant to such rules as it may adopt, permit the Participant to satisfy such
obligation, in whole or in part, by delivering shares of the Company’s Common Stock or by electing to have the Company or Subsidiary withhold shares of Common Stock otherwise issuable to the Participant having a Fair Market Value equal to the
minimum required tax withholding, based on the minimum statutory withholding rates for federal and state tax purposes, including payroll taxes, that are applicable to the supplemental income resulting from the exercise of the nonqualified stock
option. In no event may the Company or any Subsidiary withhold shares having a Fair Market Value in excess of such statutory minimum required tax withholding. The Participant’s election to have shares withheld for this purpose shall be made on
or before the date the option is exercised or, if later, the date that the amount of tax to be withheld is determined under applicable tax law. Such election shall be approved by the Administrator and otherwise comply with such rules as the
Administrator may adopt to assure compliance with Rule 16b-3, or any successor provision, as then in effect, of the General Rules and Regulations under the Securities Exchange Act of 1934, if applicable. 

  

	 	(d)	Other Provisions. The Option Agreement authorized under this Section 10 shall contain such other provisions as the Administrator shall deem advisable.

  
 SECTION 11. 
 TRANSFER OF OPTIONS 
  
 No incentive stock option shall be transferable, in whole or in part, by the Participant other than by will or by the laws of descent and distribution.
During the Participant’s lifetime, the incentive stock option may be exercised only by the Participant. If the Participant shall attempt any transfer of any incentive stock option granted under the Plan during the Participant’s lifetime,
such transfer shall be void and the incentive stock option, to the extent not fully exercised, shall terminate. 
  
 No nonqualified stock option shall be transferred, except that the Administrator may, in its sole discretion, permit the Participant to transfer any or
all nonqualified stock options to any member of the Participant’s “immediate family” as such term is defined in Rule 16a-1(e) promulgated under the Securities Exchange Act of 1934, or any successor provision, or to one or more trusts
whose beneficiaries are members of such Participant’s “immediate family” or partnerships in which such family members are the only partners; provided, however, that the Participant cannot receive any consideration for the transfer and
such transferred nonqualified stock option shall continue to be subject to the same terms and conditions as were applicable to such nonqualified stock option immediately prior to its transfer. 
  
 SECTION 12. 
 RECAPITALIZATION, SALE, MERGER, EXCHANGE OR LIQUIDATION 
  
 If, following adoption of this Plan, the Company effects an increase or decrease in the number of shares of Common Stock in the form of a subdivision or
consolidation of shares, or the payment of a stock dividend, or effects any other increase or decrease in the number of shares of Common Stock without receipt of consideration by the Company, the number of shares of Option Stock reserved under
Section 6 hereof and the number of shares of Option Stock covered by each outstanding option and stock award, and the price per share thereof, shall be appropriately adjusted by the Board to reflect such change. Additional shares which may be
credited pursuant to such adjustment shall be subject to the same restrictions as are applicable to the shares with respect to which the adjustment relates. 
  

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 Unless otherwise provided in the Option or Award Agreement, in the event of an acquisition of the Company
through the sale of substantially all of the Company’s assets and the consequent discontinuance of its business or through a merger, consolidation, exchange, reorganization, reclassification, extraordinary dividend, divestiture or liquidation
of the Company (collectively referred to as a “transaction”), the Board may provide for one or more of the following: 
  

	 	(a)	the equitable acceleration of the exercisability of any outstanding options and the lapsing of the risks of forfeiture on any stock awards; 

  

	 	(b)	the complete termination of this Plan, the cancellation of outstanding options not exercised prior to a date specified by the Board (which date shall give Participants a reasonable
period of time in which to exercise the options prior to the effectiveness of such transaction), and the cancellation of any stock awards for which the risks of forfeiture have not lapsed; 

  

	 	(c)	that Participants holding outstanding stock options shall receive, with respect to each share of Stock subject to such options, as of the effective date of any such transaction,
cash in an amount equal to the excess of the Fair Market Value of such Stock on the date immediately preceding the effective date of such transaction over the option price per share of such options; provided that the Board may, in lieu of such cash
payment, distribute to such Participants shares of stock of the Company or shares of stock of any corporation succeeding the Company by reason of such transaction, such shares having a value equal to the cash payment herein;

  

	 	(d)	that Participants holding outstanding stock awards shall receive, with respect to each share of Stock subject to such awards, as of the effective date of any such transaction, cash
in an amount equal to the Fair Market Value of such Stock on the date immediately preceding the effective date of such transaction; provided that the Board may, in lieu of such cash payment, distribute to such Participants shares of stock of the
Company or shares of stock of any corporation succeeding the Company by reason of such transaction, such shares having a value equal to the cash payment herein; 

  

	 	(e)	the continuance of the Plan with respect to the exercise of options which were outstanding as of the date of adoption by the Board of such plan for such transaction and provide to
Participants holding such options the right to exercise their respective options as to an equivalent number of shares of stock of the corporation succeeding the Company by reason of such transaction; and 

  

	 	(f)	the continuance of the Plan with respect to stock awards for which the risks of forfeiture have not lapsed as of the date of adoption by the Board of such plan for such transaction
and provide to Participants holding such awards the right to receive an equivalent number of shares of stock of the corporation succeeding the Company by reason of such transaction. 

  
 The Board may restrict the rights of or the applicability of this Section 12 to the extent
necessary to comply with Section 16(b) of the Securities Exchange Act of 1934, the Internal Revenue Code or any other applicable law or regulation. The grant of an option or stock award pursuant to the Plan shall not limit in any way the right or
power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure or to merge, exchange or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business or assets.

  
 SECTION 13. 
 INVESTMENT PURPOSE 
  
 No shares of Common Stock shall be issued pursuant to the Plan unless and until there has been compliance, in the opinion of Company’s counsel, with
all applicable legal requirements, including without limitation, those relating to securities laws and stock exchange listing requirements. As a condition to the issuance of Stock to Participant, the Administrator may require Participant to (i)
represent that the shares of Stock are being acquired for investment and not resale and to make such other representations as the Administrator shall deem necessary or appropriate to qualify the issuance of the shares as exempt from the Securities
Act of 1933 and any other applicable securities laws, and (ii) represent that Participant shall not dispose of the shares of Stock in violation of the Securities Act of 1933 or any other applicable securities laws or any company policies then in
effect. 
  
 As a further condition to the grant of any stock
option or the issuance of Stock to Participant, Participant agrees to the following: 
  

	 	(a)	In the event the Company advises Participant that it plans an underwritten public offering of its Common Stock in compliance with the Securities Act of 1933, as amended, and the
underwriter(s) seek to impose restrictions under which certain shareholders may not sell or contract to sell or grant any option to buy or otherwise dispose 

  

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 of part or all of their stock purchase rights of the underlying Common Stock, Participant will not, for a
period not to exceed 180 days from the prospectus, sell or contract to sell or grant an option to buy or otherwise dispose of any stock option granted to Participant pursuant to the Plan or any of the underlying shares of Common Stock without the
prior written consent of the underwriter(s) or its representative(s). 
  

	 	(b)	In the event the Company makes any public offering of its securities and determines in its sole discretion that it is necessary to reduce the number of issued but unexercised stock
purchase rights so as to comply with any state’s securities or Blue Sky law limitations with respect thereto, the Board of Directors of the Company shall have the right (i) to accelerate the exercisability of any stock option and the date on
which such option must be exercised, provided that the Company gives Participant prior written notice of such acceleration, and (ii) to cancel any options or portions thereof which Participant does not exercise prior to or contemporaneously with
such public offering. 

  

	 	(c)	In the event of a transaction (as defined in Section 12 of the Plan), Participant will comply with Rule 145 of the Securities Act of 1933 and any other restrictions imposed under
other applicable legal or accounting principles if Participant is an “affiliate” (as defined in such applicable legal and accounting principles) at the time of the transaction, and Participant will execute any documents necessary to ensure
compliance with such rules. 

  
 The Company reserves the right to
place a legend on any stock certificate issued upon the exercise of an option or upon the grant of a stock award pursuant to the Plan to assure compliance with this Section 13. 
  
 SECTION 14. 
 RIGHTS AS A SHAREHOLDER 
  
 A Participant
(or the Participant’s successor or successors) shall have no rights as a shareholder with respect to any shares covered by an incentive stock option or nonqualified stock option until the date of the issuance of a stock certificate evidencing
such shares. No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property), distributions or other rights for which the record date is prior to the date such stock certificate is actually issued
(except as otherwise provided in Section 12 of the Plan). 
  
 SECTION 15. 
 AMENDMENT OF THE PLAN 
  
 The Board may from time to time, insofar as permitted by law, suspend or discontinue the Plan or revise or amend it in any
respect; provided, however, that no such revision or amendment, except as is authorized in Section 12, shall impair the terms and conditions of any stock option or stock award which is outstanding on the date of such revision or amendment to the
material detriment of the Participant without the consent of the Participant. Notwithstanding the foregoing, no such revision or amendment shall (i) increase the number of shares subject to the Plan except as provided in Section 12 hereof, (ii)
change the designation of the class of employees eligible to receive stock options or stock awards, (iii) decrease the price at which options may be granted, or (iv) increase the benefits accruing to Participants under the Plan, without the approval
of the shareholders of the Company if such approval is required for compliance with the requirements of any applicable law or regulation. Furthermore, the Plan may not, without the approval of the shareholders, be amended in any manner that will
cause incentive stock options to fail to meet the requirements of Section 422 of the Internal Revenue Code. 
  
 SECTION 16. 
 NO OBLIGATION TO EXERCISE OPTION 
  
 The granting of a stock option shall impose no obligation upon the
Participant to exercise such option. Further, the granting of a stock option or stock award hereunder shall not impose upon the Company or any Subsidiary any obligation to retain the Participant in its employ for any period. 
  

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 SECTION 17. 
 STOCK AWARDS 
  
 Each stock award granted pursuant to the Plan shall be evidenced by a written stock award agreement (the “Stock Award Agreement”). The Stock Award Agreement shall be in such form as may be approved from time to time by the
Administrator and may vary from Participant to Participant; provided, however, that each Participant and each Stock Award Agreement shall comply with and be subject to the following terms and conditions: 
  

	 	(a)	Number of Shares. The Stock Award Agreement shall state the total number of shares of Stock covered by the stock award. 

  

	 	(b)	Risks of Forfeiture. The Stock Award Agreement shall set forth the risks of forfeiture, if any, which shall apply to the shares of Stock covered by the stock award, and shall
specify the manner in which such risks of forfeiture shall lapse. The Administrator may, in its sole discretion, modify the manner in which such risks of forfeiture shall lapse but only with respect to those shares of Stock which are restricted as
of the effective date of the modification. 

  

	 	(c)	Issuance of Shares. The Company shall cause to be issued a stock certificate representing such shares of Stock in the Participant’s name, and shall deliver such
certificate to the Participant; provided, however, that the Company shall place a legend on such certificate describing the risks of forfeiture and other transfer restrictions set forth in the Participant’s Stock Award Agreement and providing
for the cancellation and return of such certificate if the shares of Stock subject to the stock award are forfeited. 

  

	 	(d)	Rights as Shareholder. If the Participant’s stock award is subject to any risks of forfeiture, this Section 17(d) shall apply. Until such risks of forfeiture have lapsed
or the shares subject to such stock award have been forfeited, the Participant shall be entitled to vote the shares of Stock represented by such stock certificates and shall receive all dividends attributable to such shares, but the Participant
shall not have any other rights as a shareholder with respect to such shares. 

  

	 	(e)	Withholding Taxes. The Company or its Subsidiary shall be entitled to withhold and deduct from future wages of the Participant all legally required amounts necessary to
satisfy any and all withholding and employment-related taxes attributable to the Participant’s stock award. In the event the Participant is required under the Stock Award Agreement to pay the Company or Subsidiary, or make arrangements
satisfactory to the Company or Subsidiary respecting payment of, such withholding and employment-related taxes, the Administrator may, in its discretion and pursuant to such rules as it may adopt, permit the Participant to satisfy such obligations,
in whole or in part, by delivering shares of Common Stock, including shares of Stock received pursuant to a stock award on which the risks of forfeiture have lapsed. Such shares shall have a Fair Market Value equal to the minimum required tax
withholding, based on the minimum statutory withholding rates for federal and state tax purposes, including payroll taxes, that are applicable to the supplemental income resulting from such stock award. In no event may the Participant deliver shares
having a Fair Market Value in excess of such statutory minimum required tax withholding. The Participant’s election to deliver shares of Common Stock for this purpose shall be made on or before the date that the amount of tax to be withheld is
determined under applicable tax law. Such election shall be approved by the Administrator and otherwise comply with such rules as the Administrator may adopt to assure compliance with Rule 16b-3, or any successor provision, as then in effect, of the
General Rules and Regulations under the Securities Exchange Act of 1934, if applicable. 

  

	 	(f)	Nontransferability. If the Participant’s stock award is subject to any risks of forfeiture, this Section 17(f) shall apply. No such stock award shall be transferable, in
whole or in part, by the Participant, other than by will or by the laws of descent and distribution, prior to the date the risks of forfeiture described in the Stock Award Agreement have lapsed. If the Participant shall attempt any transfer of such
stock award granted under the Plan prior to such date, such transfer shall be void and the stock award shall terminate. 

  

	 	(g)	Other Provisions. The Stock Award Agreement authorized under this Section 17 shall contain such other provisions as the Administrator shall deem advisable.

  

 8Incentive Stock Option Agreement

 Exhibit 10.3 
  
 INCENTIVE STOCK OPTION AGREEMENT 
  
 FEATHERLITE, INC. 
 2004 EQUITY INCENTIVE PLAN 
  
 THIS AGREEMENT,
made effective as of this      day of             , 20    , by and between Featherlite, Inc., a Minnesota corporation (the
“Company”), and
                                        
(“Participant”). 
  
 W I T N E S S E T H: 
  
 WHEREAS, Participant on the date hereof is a key employee or officer of the
Company or one of its Subsidiaries; and 
  
 WHEREAS, the Company
wishes to grant an incentive stock option to Participant to purchase shares of the Company’s Common Stock pursuant to the Company’s 2004 Equity Incentive Plan (the “Plan”); and 
  
 WHEREAS, the Board of Directors has authorized the grant of an incentive
stock option to Participant and has determined that, as of the effective date of this Agreement, the fair market value of the Company’s Common Stock is $             per share;

  
 NOW, THEREFORE, in consideration of the premises and of the
mutual covenants herein contained, the parties hereto agree as follows: 
  
 1. Grant of Option. The Company hereby grants to Participant on the date set forth above (the “Date of Grant”), the right and option (the “Option”) to purchase all or portions of an aggregate of
(            ) shares of Common Stock at a per share price of $             on the terms and conditions set
forth herein, and subject to adjustment pursuant to Section 12 of the Plan. This Option is intended to be an incentive stock option within the meaning of Section 422, or any successor provision, of the Internal Revenue Code of 1986, as amended (the
“Code”), and the regulations thereunder, to the extent permitted under Code Section 422(d). 
  
 2. Duration and Exercisability. 
  
 a. General. The term during which this Option may be exercised shall terminate on the close of business on
                    ,     , except as otherwise provided in Paragraphs 2(b) through 2(d) below. This
Option shall become exercisable according to the following schedule: 
  

			
	 Vesting Date

	 	 Number of Shares

	 	 	 
	 	 	 

  
 Once the Option becomes exercisable to
the extent of one hundred percent (100%) of the aggregate number of shares specified in Paragraph 1, Participant may continue to exercise this Option under the terms and 

 conditions of this Agreement until the termination of the Option as provided herein. If Participant does not purchase
upon an exercise of this Option the full number of shares which Participant is then entitled to purchase, Participant may purchase upon any subsequent exercise prior to this Option’s termination such previously unpurchased shares in addition to
those Participant is otherwise entitled to purchase. 
  
 b.
Termination of Employment (other than Disability or Death). If Participant’s employment with the Company or any Subsidiary is terminated for any reason other than disability or death, this Option shall completely terminate on the
earlier of (i) the close of business on the three-month anniversary date of such termination of employment, and (ii) the expiration date of this Option stated in Paragraph 2(a) above. In such period following the termination of
Participant’s employment, this Option shall be exercisable only to the extent the Option was exercisable on the vesting date immediately preceding such termination of employment, but had not previously been exercised. To the extent this Option
was not exercisable upon such termination of employment, or if Participant does not exercise the Option within the time specified in this Paragraph 2(b), all rights of Participant under this Option shall be forfeited. 
  
 c. Disability. If Participant’s employment terminates
because of disability (as defined in Code Section 22(e), or any successor provision), this Option shall terminate on the earlier of (i) the close of business on the twelve-month anniversary date of the such termination of employment, and (ii)
the expiration date of this Option stated in Paragraph 2(a) above. In such period following the termination of Participant’s employment, this Option shall be exercisable only to the extent the Option was exercisable on the vesting date
immediately preceding such termination of employment, but had not previously been exercised. To the extent this Option was not exercisable upon such termination of employment, or if Participant does not exercise the Option within the time specified
in this Paragraph 2(c), all rights of Participant under this Option shall be forfeited. 
  
 d. Death. In the event of Participant’s death, this Option shall terminate on the earlier of (i) the close of business on the twelve-month anniversary date of the date of Participant’s
death, and (ii) the expiration date of this Option stated in Paragraph 2(a) above. In such period following Participant’s death, this Option shall be exercisable by the person or persons to whom Participant’s rights under this Option shall
have passed by Participant’s will or by the laws of descent and distribution only to the extent the Option was exercisable on the vesting date immediately preceding the date of Participant’s death. To the extent this Option was not
exercisable upon the date of Participant’s death, or if such person or persons do not exercise this Option within the time specified in this Paragraph 2(d), all rights under this Option shall be forfeited. 
  
 3. Manner of Exercise. 
  
 a. General. The Option may be exercised only by Participant
(or other proper party in the event of death or incapacity), subject to the conditions of the Plan and subject to such other administrative rules as the Board may deem advisable, by delivering within the Option Period written notice of exercise to
the Company at its principal office. The notice shall state the number of shares as to which the Option is being exercised and shall be accompanied by payment in full of the Option price for all shares designated in the notice. The exercise of the
Option shall be deemed effective upon receipt of such notice by the Company and upon payment that complies with the terms of the Plan and this Agreement. The Option may be exercised with respect to any number or all of the shares as to which it can
then be exercised and, if partially exercised, may be so exercised as to the unexercised shares any number of times during the Option period as provided herein. 
  

 2 

 b. Form of Payment. Subject to approval by the Administrator, payment of the option price
by Participant shall be in the form of cash, personal check, certified check or previously acquired shares of Common Stock of the Company, or any combination thereof. Any stock so tendered as part of such payment shall be valued at its Fair Market
Value as provided in the Plan. For purposes of this Agreement, “previously acquired shares of Common Stock” shall include shares of Common Stock that are already owned by Participant at the time of exercise. 
  
 c. Stock Transfer Records. As soon as practicable after the
effective exercise of all or any part of the Option, Participant shall be recorded on the stock transfer books of the Company as the owner of the shares purchased, and the Company shall deliver to Participant one or more duly issued stock
certificates evidencing such ownership. All requisite original issue or transfer documentary stamp taxes shall be paid by the Company. 
  
 4. Miscellaneous. 
  
 a. Employment; Rights as Shareholder. This Agreement shall not confer on Participant any right with respect to continuance of employment by
the Company or any of its Subsidiaries, nor will it interfere in any way with the right of the Company to terminate such employment. Participant shall have no rights as a shareholder with respect to shares subject to this Option until such shares
have been issued to Participant upon exercise of this Option. No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property), distributions or other rights for which the record date is prior to
the date such shares are issued, except as provided in Section 12 of the Plan. 
  
 b. Securities Law Compliance. The exercise of all or any parts of this Option shall only be effective at such time as counsel to the Company shall have determined that the issuance and delivery of Common
Stock pursuant to such exercise will not violate any state or federal securities or other laws. Participant may be required by the Company, as a condition of the effectiveness of any exercise of this Option, to agree in writing that all Common Stock
to be acquired pursuant to such exercise shall be held, until such time that such Common Stock is registered and freely tradable under applicable state and federal securities laws, for Participant’s own account without a view to any further
distribution thereof, that the certificates for such shares shall bear an appropriate legend to that effect and that such shares will be not transferred or disposed of except in compliance with applicable state and federal securities laws.

  
 c. Mergers, Recapitalizations, Stock Splits,
Etc. Pursuant and subject to Section 12 of the Plan, certain changes in the number or character of the Common Stock of the Company (through sale, merger, consolidation, exchange, reorganization, divestiture (including a spin-off),
liquidation, recapitalization, stock split, stock dividend or otherwise) shall result in an adjustment, reduction or enlargement, as appropriate, in Participant’s rights with respect to any unexercised portion of the Option (i.e.,
Participant shall have such “anti-dilution” rights under the Option with respect to such events, but shall not have “preemptive” rights). 
  
 d. Shares Reserved. The Company shall at all times during the option period reserve and keep available such number of shares as will be
sufficient to satisfy the requirements of this Agreement. 
  
 e.
Withholding Taxes on Disqualifying Disposition. In the event of a disqualifying disposition of the shares acquired through the exercise of this Option, Participant hereby agrees to inform the Company of such disposition. Upon notice of
a disqualifying disposition, the 
  

 3 

 Company may take such action as it deems appropriate to insure that, if necessary to comply with all applicable federal
or state income tax laws or regulations, all applicable federal and state payroll, income or other taxes are withheld from any amounts payable by the Company to Participant. If the Company is unable to withhold such federal and state taxes, for
whatever reason, Participant hereby agrees to pay to the Company an amount equal to the amount the Company would otherwise be required to withhold under federal or state law. Participant may, subject to the approval and discretion of the Board or
such administrative rules it may deem advisable, elect to have all or a portion of such tax withholding obligations satisfied by delivering shares of the Company’s Common Stock or by electing to have the Company withhold shares of Common Stock
otherwise issuable to Participant. Such shares shall have a Fair Market Value equal to the minimum required tax withholding, based on the minimum statutory withholding rates for federal and state tax purposes, including payroll taxes, that are
applicable to the supplemental income resulting from the disqualifying disposition of the shares acquired through the exercise of this Option. In no event may the Company withhold shares having a Fair Market Value in excess of such statutory minimum
required tax withholding. 
  
 f. Nontransferability.
During the lifetime of Participant, the accrued Option shall be exercisable only by Participant or by the Participant’s guardian or other legal representative, and shall not be assignable or transferable by Participant, in whole or in part,
other than by will or by the laws of descent and distribution. 
  
 g. 2004 Equity Incentive Plan. The Option evidenced by this Agreement is granted pursuant to the Plan, a copy of which Plan has been made available to Participant and is hereby incorporated into this Agreement. This Agreement
is subject to and in all respects limited and conditioned as provided in the Plan. The Plan governs this Option and, in the event of any questions as to the construction of this Agreement or in the event of a conflict between the Plan and this
Agreement, the Plan shall govern, except as the Plan otherwise provides. 
  
 h. Lockup Period Limitation. Participant agrees that in the event the Company advises Participant that it plans an underwritten public offering of its Common Stock in compliance with the Securities Act
of 1933, as amended, and that the underwriter(s) seek to impose restrictions under which certain shareholders may not sell or contract to sell or grant any option to buy or otherwise dispose of part or all of their stock purchase rights of the
underlying Common Stock, Participant hereby agrees that for a period not to exceed 180 days from the prospectus, Participant will not sell or contract to sell or grant an option to buy or otherwise dispose of this option or any of the underlying
shares of Common Stock without the prior written consent of the underwriter(s) or its representative(s). 
  
 i. Blue Sky Limitation. Notwithstanding anything in this Agreement to the contrary, in the event the Company makes any public offering of
its securities and determines in its sole discretion that it is necessary to reduce the number of issued but unexercised stock purchase rights so as to comply with any state securities or Blue Sky law limitations with respect thereto, the Board of
Directors of the Company shall have the right (i) to accelerate the exercisability of this Option and the date on which this Option must be exercised, provided that the Company gives Participant 15 days’ prior written notice of such
acceleration, and (ii) to cancel any portion of this Option or any other option granted to Participant pursuant to the Plan which is not exercised prior to or contemporaneously with such public offering. Notice shall be deemed given when delivered
personally or when deposited in the United States mail, first class postage prepaid and addressed to Participant at the address of Participant on file with the Company. 
  

 4 

 j. Accounting Compliance. Participant agrees that, if a merger, reorganization, liquidation
or other “transaction” as defined in Section 12 of the Plan occurs and Participant is an “affiliate” of the Company or any Subsidiary (as defined in applicable legal and accounting principles) at the time of such transaction,
Participant will comply with all requirements of Rule 145 of the Securities Act of 1933, as amended, and the requirements of such other legal or accounting principles, and will execute any documents necessary to ensure such compliance. 

 
 k. Stock Legend. The Board may require that the certificates
for any shares of Common Stock purchased by Participant (or, in the case of death, Participant’s successors) shall bear an appropriate legend to reflect the restrictions of Paragraph 4(b) and Paragraphs 4(h) through 4(j) of this Agreement.

  
 l. Scope of Agreement. This Agreement shall bind
and inure to the benefit of the Company and its successors and assigns and Participant and any successor or successors of Participant permitted by Paragraph 2 or Paragraph 4(f) above. 
  
 m. Arbitration. Any dispute arising out of or relating to this Agreement or the alleged breach of it, or the
making of this Agreement, including claims of fraud in the inducement, shall be discussed between the disputing parties in a good faith effort to arrive at a mutual settlement of any such controversy. If, notwithstanding, such dispute cannot be
resolved, such dispute shall be settled by binding arbitration. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The arbitrator shall be a retired state or federal judge or an attorney who
has practiced securities or business litigation for at least 10 years. If the parties cannot agree on an arbitrator within 20 days, any party may request that the chief judge of the District Court for Hennepin County, Minnesota, select an
arbitrator. Arbitration will be conducted pursuant to the provisions of this Agreement, and the commercial arbitration rules of the American Arbitration Association, unless such rules are inconsistent with the provisions of this Agreement. Limited
civil discovery shall be permitted for the production of documents and taking of depositions. Unresolved discovery disputes may be brought to the attention of the arbitrator who may dispose of such dispute. The arbitrator shall have the authority to
award any remedy or relief that a court of this state could order or grant; provided, however, that punitive or exemplary damages shall not be awarded. The arbitrator may award to the prevailing party, if any, as determined by the arbitrator, all of
its costs and fees, including the arbitrator’s fees, administrative fees, travel expenses, out-of-pocket expenses and reasonable attorneys’ fees. Unless otherwise agreed by the parties, the place of any arbitration proceedings shall be
Hennepin County, Minnesota. 
  
 IN WITNESS WHEREOF, the parties
hereto have caused this Agreement to be executed on the day and year first above written. 
  

			
	 FEATHERLITE, INC.

		
	 By:
	 	  

	 Its:
	 	  

	
	  

	 Participant

  

 5

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