Document:

Executive Consulting Agreement with Kenneth J. Hunnicutt

 Exhibit 10.16 
  
 EXECUTIVE CONSULTING AGREEMENT 
  
 THIS EXECUTIVE CONSULTING AGREEMENT (the “Agreement”) is made and entered into as of the
1st day of January, 2005 between KENNETH J. HUNNICUTT, an individual resident of the State of Georgia
(“Consultant”), and ABC BANCORP, a Georgia corporation (the “Company”). 
  
 W I T N E S S E T H: 
  
 WHEREAS, on December 31, 2003, the Company and Consultant amended that certain Amended and Restated Executive Employment Agreement dated as of May
24, 1999 between the Company and Consultant (the “Employment Agreement”) pursuant to the terms and conditions of Amendment No.1 thereto, to which this Agreement is attached as Exhibit A; 
  
 WHEREAS, Consultant has heretofore served as the Company’s
Chairman of the Board and Chief Executive Officer, and Consultant desires to change his role with the Company in order to make himself available to provide consulting services to the Company and facilitate its retention of a new chief executive
officer; 
  
 WHEREAS, simultaneously herewith Consultant
has voluntarily resigned as an executive officer and employee of the Company; and 
  
 WHEREAS, the Company and Consultant each desire to enter into this Agreement to set forth in writing the terms and conditions of Consultant’s relationship with the Company from and after the date hereof;

  
 NOW, THEREFORE, in consideration of the premises and of
the promises and agreements hereinafter set forth, the parties hereto, intending to be legally bound, do hereby agree as follows: 
  
 SECTION 1. Term. The term of this Agreement shall begin on the date hereof (the “Effective Date”) and, unless otherwise
earlier terminated pursuant to Section 3 hereof, shall end on the date of the Company’s annual meeting of shareholders held during calendar year 2007, but in no event later than May 31, 2007 (hereinafter referred to as the
“Term”). 
  
 SECTION 2. Consulting
Services. Consultant hereby agrees to provide such consulting services to the Company during the Term with respect to such matters pertaining to the Company’s business and affairs as may be requested of Consultant from time to time by
the Company’s Board of Directors (the “Board”) or President, provided that Consultant shall not be obligated to consult on any matter that would not be appropriate for an executive-level consultant or a member of senior
management. In this regard, Consultant shall be generally available to provide consulting services to the Board during normal business hours, upon reasonable notice, throughout the Term, it being the intent of the parties that Consultant may provide
such services 

 on or off the Company’s premises, unless it shall be necessary for Consultant to be on-site at a specific Company
location in connection with a specific project (e.g., such as attending management meetings); provided, however, that Consultant may (a) serve as a director or officer of any charitable, religious, civic, educational, or trade
organization, and (b) provide consulting services to any other person or entity that is not engaged in a Competing Business, in each case to the extent that such activities, individually or in the aggregate, do not interfere with the performance of
Consultant’s duties and responsibilities under this Agreement. In performing Consultant’s services hereunder, Consultant shall be an independent contractor and shall not be, or be deemed to be, an employee or agent of the Company. Except
as may be specifically authorized in a writing in advance by the President or the Board of Directors of the Company, Consultant shall have no right or authority to act for or on behalf of the Company or otherwise to enter into any agreements or make
any commitments with third parties binding upon the Company. 
  
 SECTION 3. Early Termination. 
  
 3.1
Right to Terminate. The Term may be terminated prior to its expiration upon the occurrence of any of the following events: 
  
 (a) the mutual written agreement of the parties hereto to terminate the Term; 
  
 (b) the Company’s termination of the Term, upon written notice to Consultant, for “good cause,” which
shall exist (i) if Consultant is convicted of (from which no appeal may be taken), or pleads guilty to, any act of fraud, misappropriation or embezzlement, or any felony, (ii) if Consultant has engaged in conduct or activity materially damaging to
the business of the Company (it being understood, however, that neither conduct nor activity pursuant to Consultant’s exercise of his good faith business judgment nor unintentional physical damage to any property of the Company by Consultant
shall be a ground for such a determination by the Company), or (iii) Consultant breaches the terms of this Agreement and, within ten (10) days following written notice by the Company to Consultant of such breach, the Consultant has failed to cure
such breach; or 
  
 (c) the Consultant’s termination of the
Term, upon written notice to the Company, if the Company breaches the terms of this Agreement and, within ten (10) days following written notice by the Consultant to the Company of such breach, the Company has failed to cure such breach. 

 
 3.2 Consequences of Good Cause Termination and Wrongful
Termination. In the event that the Company terminates the Term for “good cause” pursuant to Section 3.1(b) hereof, then, in addition to other remedies available to the Company at law or in equity, the Company shall have no further
obligation (a) to make any payments to Consultant under Section 4.1 hereof or (b) to provide Consultant with office space or secretarial assistance under Section 4.3 hereof, provided that in such event the Company shall continue to offer
COBRA continuation coverage to Consultant, at Consultant’s expense, for the remainder of the unexpired Term. In the event that the Company terminates Consultant hereunder alleging “good cause” under Section 3.1(b) hereof and it is
subsequently determined pursuant to the arbitration 
  

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 procedure provided for in Section 10.9 hereof that the termination was not for “good cause”, then the Company
shall be obligated to promptly pay Consultant, as liquidated damages and in lieu of all other amounts payable hereunder or damages arising therefrom, (i) a lump-sum amount (retroactive to the date of termination) equal to all remaining unpaid
compensation pursuant to Section 4.1 hereof which would otherwise have been payable to Consultant during the Term had the Agreement not been terminated; and (ii) all of Consultant’s reasonable attorneys’ fees and costs incurred in
connection therewith. In the event that the Consultant terminates the Term in accordance with Section 3.1(c), then, in addition to other remedies available to the Consultant at law or in equity, the Consultant shall have no further obligation (a) to
provide services to the Company pursuant to Section 2 or 5 hereof or (b) to comply with the provisions of Section 6.2 hereof. 
  
 3.3 Consequences of Mutual Early Termination. In the event that the Company and Consultant mutually agree to terminate the Term pursuant to
Section 3.1(a) hereof, the parties’ respective rights and obligations under this Agreement shall terminate unless and except to the extent that the parties expressly agree otherwise at the time of such mutual termination. 
  
 SECTION 4. Compensation and Related Matters. 
  
 4.1 Compensation. During the Term, the Company hereby agrees
to pay to Consultant the sum of $13,333.00 per month, such payments to be made on or before the 1st calendar day of
each month commencing February 1, 2005. The amounts payable under this Section 4.1 shall be paid without deduction for state or federal withholding taxes, social security or other like sums, and, by virtue of being an independent contractor
hereunder, Consultant alone shall be responsible for the payment of all such taxes and sums levied or assessed with respect to the amounts paid to Consultant hereunder. 
  
 4.2 Out-of-Pocket Expenses. Consultant shall be entitled to receive reimbursement for all reasonable expenses
incurred during the Term in connection with the fulfillment of Consultant’s duties hereunder upon presentation of appropriate vouchers therefor, provided that Consultant has complied with all reasonable policies and procedures relating
to the reimbursement of such expenses as shall, from time to time, be established by the Company for its employees. 
  
 4.3 Office Space and Secretarial Assistance. During the Term, the Company shall provide Consultant with reasonable office space and
secretarial assistance. 
  
 4.4 Acknowledgement of Bylaw
Indemnification. The Company and Consultant acknowledge and agree that nothing herein is intended to modify, diminish or affect Consultant’s right to indemnification in the manner contemplated by the Company’s Bylaws in effect as
of the Effective Date. 
  

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 SECTION 5. Board Position and Other Positions. During the Term, management of the Company
shall nominate Consultant to serve as a director of the Company, and the Board shall recommend that the Company’s shareholders elect Consultant as a director. If so elected, Consultant shall continue to serve as Chairman of the Board (without
any additional compensation therefor except for customary directors’ fees). Simultaneously with the execution of this Agreement, Consultant has resigned as an officer and employee of the Company and as an officer, director, manager, trustee,
agent and employee of each of the Company’s subsidiaries and affiliates. 
  
 SECTION 6. Restrictive Covenants 
  
 6.1 Acknowledgements. Consultant acknowledges that the covenants herein are essential to the negotiated consulting arrangements contemplated hereby, are necessary to protect the goodwill and other value
of the Company and are given by Consultant in consideration of the compensation payable hereunder to Consultant by the Company and that irreparable injury would befall the Company should Consultant breach such covenants. Consultant further
acknowledges that (i) his prior services as an employee of the Company were, and his services hereunder are, of a special, unique and extraordinary character and that his positions with the Company have placed him in a position of confidence and
trust with the key relationships and employees of the Company and have allowed him access to Confidential Information (as hereinafter defined), (ii) the type and periods of restrictions imposed by the covenants in this Section 6 are fair and
reasonable and that such restrictions will not prevent Consultant from earning a livelihood, (iii) Consultant is receiving payments hereunder during the operative term of these covenants in consideration of these covenants, (iv) the Company is
engaged in the business of providing banking and bank-related services; (v) the Company conducts its business activity in and throughout the Area (as hereinafter defined); and (vi) Competing Businesses (as hereinafter defined) are engaged in
businesses like and similar to the business of the Company. 
  
 6.2 Covenants. Having acknowledged the foregoing, Consultant covenants and agrees with the Company that, during the Term and for a period of one (1) year thereafter, he will not, directly or indirectly, (i) disclose or use for
his own benefit or the benefit of any other person, except as may be necessary in the performance of his duties hereunder, any Confidential Information disclosed to the Consultant or of which Consultant became aware by reason of his prior employment
with or service as a consultant to the Company; (ii) solicit or divert or appropriate to any Competing Business, directly or indirectly, on his own behalf or in the service of or on behalf of any Competing Business, or attempt to solicit or divert
or appropriate to any such Competing Business, within the Area, any person or entity who was a customer of the Company at any time during the preceding twelve (12) months of Consultant’s relationship with the Company and with whom Consultant
had contact during such period; (iii) employ or attempt to employ or assist anyone else in employing in any Competing Business in the Area any managerial or key employee of the Company (whether or not such employment is full time or is pursuant to a
written contract with the Company); and (iv) engage in or render any services to or be employed by any Competing Business in the Area in the capacity of officer, managerial or executive employee, director, management consultant or shareholder (other
than as the owner of less than five (5%) percent of the shares of a publicly-owned corporation. 
  

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 6.3 Return of Information. Consultant agrees that, upon the termination of this Agreement
for any reason whatsoever, he will not take with him or retain without written authorization from the Company’s Chairman of the Board or President, and he will promptly deliver to the Company, originals and all copies of all papers, files or
other documents containing any Confidential Information and all other property belonging to the Company and in his possession or under his control. Notwithstanding the immediately preceding sentence, Consultant shall be permitted to retain any
personal memorabilia belonging to him, notes taken by him as a member of the Board, or any committee thereof, and any other such materials which Consultant deems to be of value to him in the event the same may be needed by Consultant in connection
with the defense of any lawsuit, action or proceeding brought against him for any reason whatsoever. 
  
 6.4 Definitions and Construction. For purposes of this Agreement, (i) “Area” means a fifty (50) mile radius of Moultrie, Georgia;
(ii) “Competing Business” means the business of providing banking or bank-related services; and (iii) “Confidential Information” means any and all data and information relating to the business of the Company (whether or not
constituting a trade secret) that is, has been or will be disclosed to the Consultant or of which Consultant became or becomes aware as a consequence of or though his relationship as an employee of or consultant to the Company and that has value to
the Company and is not generally known by its competitors. Confidential Information shall not include any data or information that has been voluntarily disclosed to the public by the Company (except where such public disclosure has been made without
authorization by the Company), that has been independently developed and disclosed by others, or that otherwise enters the public domain through lawful means. Confidential Information includes, without limitation, information relating to the
Company’s financial affairs, processes, services, customers, employees or employees’ compensation, research, development, purchasing, accounting or marketing. The parties hereto agree that all references to the Company in this Section 6
shall include, unless the context otherwise requires, all subsidiaries and controlled affiliates of the Company. 
  
 6.5 Survival of Restrictive Covenants. The covenants and obligations of Consultant under this Section 6 are independent of and separate from
the other provisions hereof and shall survive any earlier termination of the Term in accordance with Section 3.1 hereof, unless the parties expressly agree in writing to the contrary. 
  
 SECTION 7. Representations and Warranties of Consultant. The Consultant represents and warrants that:

  
 (a) this Agreement constitutes the legal, valid and binding
obligation of the Consultant, enforceable against him in accordance with its terms; 
  
 (b) Consultant has no claims or rights against, or interests in, the Company, its subsidiaries or its controlled affiliates, other than (i) those cancelled, exchanged, 
  

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 waived, superseded and replaced by this Agreement, and (ii) Consultant’s rights as a holder of the Company’s
common stock and of options to acquire common stock pursuant to employee stock options granted to the Consultant; and 
  
 (c) Consultant has no right, title, interest or claim in, to or under any Confidential Information or trade secrets of the Company. 
  
 SECTION 8. Waivers. Neither party shall be deemed, as a
consequence of any act, delay, failure, omission, forbearance or other indulgences granted from time to time by such party, or for any other reason, (i) to have waived, or to be estopped from exercising, any of such party’s rights or remedies
under this Agreement, or (ii) to have modified, changed, amended, terminated, rescinded, or superseded any of the terms of this Agreement. 
  
 SECTION 9. Injunctive Relief. The Consultant acknowledges (i) that any violation of this Agreement will result in irreparable injury to the
Company, (ii) that damages at law would not be reasonable or adequate compensation to the Company for violation of this Agreement, and (iii) that the Company shall be entitled to have the provisions of this Agreement specifically enforced by
preliminary and permanent injunctive relief without the necessity of proving actual damages and without posting bond or other security, as well as to an equitable accounting of all earnings, profits and other benefits arising out of any such
violation. 
  
 SECTION 10. Miscellaneous.

  
 10.1 Binding Effect. This Agreement shall
inure to the benefit of and shall be binding upon Consultant, Consultant’s executor, administrator, heirs, personal representatives and assigns, and upon the Company and its successors and assigns; provided, however, that the
obligations and duties of Consultant may not be assigned or delegated. 
  
 10.2 Governing Law. This Agreement shall be deemed to be made in, and in all respects shall be interpreted, construed and governed by and in accordance with, the laws of the State of Georgia, without giving effect to any
conflicts of laws principles. 
  
 10.3 Invalid
Provisions. The parties herein hereby agree that the agreements, provisions and covenants contained in this Agreement are severable and divisible, that none of such agreements, provisions or covenants depends upon any other provision,
agreement or covenant for its enforceability, and that each such agreement, provision and covenant constitutes an enforceable obligation between the Company and Consultant. Consequently, the parties hereto agree that neither the invalidity nor the
unenforceability of any agreement, provision or covenant of this Agreement shall affect the other agreements, provisions or covenants hereof, and this Agreement shall remain in full force and effect and be construed in all respects as if such
invalid or unenforceable agreement, provision or covenant were omitted. 
  
 10.4 Headings. The section and paragraph headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 
  

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 10.5 Notices. All notices and other communications under this Agreement shall be in writing
and may be given by any of the following methods: (i) personal delivery; (ii) registered or certified mail, postage prepaid, return receipt requested; or (iii) overnight delivery service requiring acknowledgment of receipt. Any such notice or
communication shall be sent to the appropriate party at its address given below (or at such other address for such party as shall be specified by notice given hereunder): 
  
 If to Consultant, addressed to: 
  

Mr. Kenneth J. Hunnicutt 
 766 Georgia
Highway 111 
 Moultrie, Georgia 31768 
  
 If to the Company, addressed to: 
  
 ABC Bancorp 
 24 Second Ave., S.E.

 Moultrie, Georgia 31768 
 Attention: Chief Executive Officer 
  
 All such notices and
communications shall be deemed received (i) upon actual receipt thereof by the addressee, or (ii) upon actual delivery thereof to the appropriate address as evidenced by an acknowledged receipt. 
  
 10.6 Facsimile Signature; Counterparts. This Agreement may be
executed by facsimile signature and in one or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument. 
  
 10.7 Waiver of Breach. The waiver by the Company of a breach of any provision, agreement or covenant of this
Agreement by Consultant shall not operate or be construed as a waiver of any prior or subsequent breach of the same or any other provision, agreement or covenant by Consultant. 
  
 10.8 Amendment. This Agreement may not be amended, modified or supplemented except by written agreement of the
parties hereto. 
  
 10.9 Arbitration. Any
controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be settled by arbitration in Moultrie, Georgia in accordance with the commercial arbitration rules of the American Arbitration Association then in
effect. The decision of the arbitrators shall be final and binding as to any matter submitted to them under this Agreement, and judgment on any award rendered by the arbitrators may be entered in any court having jurisdiction thereof. 
  
 10.10 Entire Agreement; Termination of Employment Agreement.
This Agreement (together with any document or agreement referred to herein) constitutes the full and entire understanding and agreement between the parties with regard to the subject matter hereof and supersedes and replaces all prior agreements
(written or oral) by and between, and all contractual rights of, the Company and Consultant. 
  

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 10.11 Representations and Warranties of the Company. The Company hereby represents and
warrants to the Consultant that: (i) this Agreement has been duly authorized by the Board, executed and delivered by the Company, and constitutes the valid and binding agreement of the Company, enforceable against it in accordance with its terms;
and (ii) the Company has the full power authority to execute, deliver and perform this Agreement and has taken all necessary action to secure all approvals required in connection herewith. 
  
 10.12 Attorneys’ Fees. If there is any legal action,
arbitration or proceeding between Consultant and the Company arising from or based on this Agreement or the interpretation or enforcement of any provisions hereof, then the unsuccessful party to such action, arbitration or proceeding shall pay to
the prevailing party all costs and expenses, including, without limitation, reasonable attorneys’ fees, incurred by such prevailing party in such action, arbitration or proceeding, in any appeal in connection therewith and in any action or
proceeding taken to enforce any judgment or order so obtained by the prevailing party. If such prevailing party recovers a judgment in any such action, arbitration, proceeding or appeal, then such costs, expenses and attorneys’ fees shall be
included in and as a part of such judgment. 
  
 IN WITNESS
WHEREOF, Consultant has executed and delivered this Agreement, and the Company has caused this Agreement to be duly executed and delivered by its officer thereunto duly authorized, all as of the day and year first written above. 
  

			
	 /s/ Kenneth J. Hunnicutt

	KENNETH J. HUNNICUTT
	
	ABC BANCORP
		
	 By:
	 	 /s/ Edwin W. Hortman, Jr.

	 Name:
	 	Edwin W. Hortman, Jr.
	 Title:
	 	President

  
  

 8Pacific Mercantile Bancorp 2004 Stock Incentive Plan

 Exhibit 10.19 
  
 PACIFIC MERCANTILE BANCORP 
  

2004 STOCK INCENTIVE PLAN 
  
 This 2004 STOCK INCENTIVE PLAN (the “Plan”) is hereby established by Pacific Mercantile Bancorp, a California corporation (the
“Company”), and adopted by its Board of Directors as of February 17, 2004 (the “Effective Date”). 
  
 Section 1. Purposes of the Plan 
  
 1.1 Purposes. The purposes of the Plan are (a) to enhance the ability of the Company and its Affiliated Companies to attract and retain the
services of officers, qualified employees and directors of the Company, upon whose judgment, initiative and efforts the successful conduct and development of the Company’s businesses largely depends, and (b) to provide additional incentives to
such persons to devote their utmost effort and skill to the advancement and betterment of the Company, by providing them an opportunity to participate in the ownership of the Company and thereby have an interest in the success and increased value of
the Company that coincides with the financial interests of the Company’s shareholders. 
  
 Section 2. Definitions 
  
 For purposes of this Plan, the following terms shall have the meanings indicated: 
  
 2.1 Acquiring Entity. “Acquiring Entity” means the corporation or other entity that (i) on consummation of a merger or consolidation in which the Company is a party, will be the owner of at least a
majority of the outstanding shares of the Surviving Entity in such merger or consolidation, or (ii) on consummation of a sale of all or substantially all of the Company’s assets will become or be the owner of such assets or of the securities or
other ownership interests representing at least a majority of the voting power of any corporation or other entity that becomes the owner of such assets. 
  
 2.2 Administrator. “Administrator” means the Board or, if the Board delegates responsibility for any matter to the Committee, the term
Administrator shall mean the Committee. 
  
 2.3 Affiliated
Company. “Affiliated Company” means any “parent corporation” or “subsidiary corporation” of the Company, whether now existing or hereafter created or acquired, as those terms are defined in Sections 424(e) and
424(f) of the Code, respectively. 
  
 2.4 Board.
“Board” means the Board of Directors of the Company. 
  
 2.5 Change in Control. “Change in Control” means: 
  
 (a) The acquisition, directly or indirectly, in one transaction or a series of related transactions, by any person or group (within the meaning of Section 13(d)(3) of the Exchange Act) of the beneficial ownership of
securities of the Company possessing more than fifty percent (50%) of the total combined voting power of all outstanding securities of the Company; 
  
 (b) A merger or consolidation in which the Company is not the Surviving Entity, except for a transaction in which the Persons who,
immediately prior to such merger or consolidation, were the holders of the outstanding voting securities of the Company, as a result of their ownership thereof, become the holders (in the aggregate) of securities possessing more than fifty percent
(50%) of the total combined voting power of all outstanding voting securities of the Surviving Entity or the Acquiring Entity (as the case may be) in such merger or consolidation immediately after consummation thereof; 

 (c) A reverse merger in which the Company is the Surviving Entity, but in which the
holders of the Company’s outstanding voting securities immediately prior to such merger will hold, in the aggregate, immediately after consummation of such merger, securities possessing less than fifty percent (50%) of the total combined voting
power of all outstanding voting securities of the Company or its Acquiring Entity, if any, in such merger; 
  
 (d) The sale, transfer or other disposition (in one transaction or a series of related transactions) of all or substantially all of the
assets of the Company, except for a transaction in which the Company will receive, in exchange for the sale of such assets, securities possessing more than fifty percent (50%) of the total combined voting power of all outstanding voting securities
of the Acquiring Entity in such transaction(s); or 
  
 (e) The approval by the Shareholders of the Company of a plan or proposal for the liquidation or dissolution of the Company. 
  
 2.6 Code. “Code” means the Internal Revenue Code of 1986, as amended from time to time. 
  
 2.7 Committee. “Committee” means a committee of two or more
members of the Board appointed to administer the Plan, as set forth in Section 7.1 hereof. 
  
 2.8 Common Stock. “Common Stock” means the Common Stock of the Company, subject to adjustment pursuant to Section 4.2 hereof. 
  
 2.9 Covered Employee. “Covered Employee” means the chief executive officer of the Company (or the
individual acting in such capacity) and the four (4) other individuals that are the highest compensated officers of the Company for the relevant taxable year for whom total compensation is required to be reported to shareholders under the Exchange
Act. 
  
 2.10 Disability. “Disability” means
permanent and total disability as defined in Section 22(e)(3) of the Code. The Administrator’s determination of a Disability or the absence thereof shall be conclusive and binding on all interested parties. 
  
 2.11 Effective Date. “Effective Date” means the date on
which the Plan is adopted by the Board, as set forth on the first page hereof. 
  
 2.12 Exchange Act. “Exchange Act” means the Securities and Exchange Act of 1934, as amended. 
  
 2.13 Exercise Price. “Exercise Price” means the purchase price per share of Common Stock payable upon exercise of an Option. 

 
 2.14 Fair Market Value. “Fair Market Value” on any given
date means the value of one share of Common Stock, determined as follows: 
  
 (a) If the Common Stock is then listed or admitted to trading on a Nasdaq market system or a stock exchange which reports closing sale prices, the Fair Market Value shall be the closing sale price on the date of
valuation on such Nasdaq market system or principal stock exchange on which the Common Stock is then listed or admitted to trading, or, if no closing sale price is quoted on such day, then the Fair Market Value shall be the closing sale price of the
Common Stock on such Nasdaq market system or such exchange on the next preceding day for which a closing sale price is reported. 
  
 (b) If the Common Stock is not then listed or admitted to trading on a Nasdaq market system or a stock exchange which reports closing sale
prices, the Fair Market Value shall be the average of the closing bid and asked prices of the Common Stock in the over-the-counter market on the date of valuation. 
  

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 (c) If neither (a) nor (b) is applicable as of the date of valuation, then the Fair
Market Value shall be determined by the Administrator in good faith using any reasonable method of evaluation, which determination shall be conclusive and binding on all interested parties. 
  
 2.15 Incentive Option. “Incentive Option” means any Option
designated and qualified as an “incentive stock option” as defined in Section 422 of the Code. 
  
 2.16 Incentive Option Agreement. “Incentive Option Agreement” means an Option Agreement with respect to an Incentive Option. 

 
 2.17 Involuntary Termination. “Involuntary Termination”
means the termination of a Participant’s Continuous Service by reason of: 
  
 (a) Optionee’s involuntary dismissal or discharge by the Company or, following consummation of a Change in Control, by the Successor Entity or Acquiring Entity (or any subsidiary thereof employing the
Participant) for reasons other than Misconduct, or 
  
 (b) Optionee’s voluntary resignation following (i) a change in Participant’s position with the Company (or parent or any subsidiary thereof) or, following a Change in Control, with the Successor or Acquiring Entity (as the case
may be) or any subsidiary thereof, which materially reduces Participant’s duties and responsibilities or the level of management to which Participant reports, (ii) a reduction in Participant’s level of compensation (including base salary,
fringe benefits and target bonus under any performance based bonus or incentive programs) by more than ten percent (10%), or (iii) a relocation of Participant’s principal place of employment by more than thirty (30) miles, provided and only if
such change, reduction or relocation is effected without Participant’s written consent. 
  
 2.18 Misconduct. Misconduct” of a Participant means (A) the commission of any act of fraud, embezzlement or dishonesty by Participant which materially and adversely affects the business or reputation of
the Company or any Affiliated Company or, following a Change in Control of the Company, of any Successor Entity or Acquiring Entity (as the case may be) in the Change in Control, or any Affiliated Company thereof, (B) any unauthorized use or
disclosure by Participant of confidential information or trade secrets of the Company or any Affiliated Company or, following a Change in Control of the Company, of any Successor Entity or Acquiring Entity (as the case may be) in the Change in
Control, or any Affiliated Company thereof, (C) the continued refusal or omission by Participant to perform any material duties required of him or her if such duties are consistent with duties customary for the position held by such Participant with
the Company or any Affiliated Company or, following a Change in Control of the Company, of any Successor Entity or Acquiring Entity (as the case may be) in the Change in Control, or any Affiliated Company thereof, (D) any material act or omission by
a Participant involving malfeasance or gross negligence in the performance of Participant’s duties to, or material deviation from any of the policies or directives of, the Company or any Affiliated Company or, following a Change in Control, of
the Successor Entity or Acquiring Entity (as the case may be) in the Change in Control or any Affiliated Company thereof, (E) conduct on the part of Participant which constitutes the breach of any statutory or common law duty of loyalty to the
Company or any Affiliated Company or, following a Change in Control, to the Successor or Entity or Acquiring Entity (as the case may be), or any Affiliated Company thereof, or (F) any illegal act by Participant which materially and adversely affects
the business or reputation of the Company or any Affiliated Company, or following a Change in Control, of the Successor Entity or Acquiring Entity in the Change of Control or any Affiliated Company thereof, or the conviction of Participant as a
felon. 
  
 2.19 NASD Dealer. “NASD Dealer” means
a broker-dealer that is a member of the National Association of Securities Dealers, Inc. 
  
 2.20 Non-Employee Director. “Non-employee Director” shall mean a director of the Company who is neither an employee nor an executive officer of the Company. 
  

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 2.21 Nonqualified Option. “Nonqualified Option” means any Option that is not an
Incentive Option. To the extent that any Option designated as an Incentive Option fails in whole or in part to qualify as an Incentive Option, including, without limitation, for failure to meet the limitations applicable to a 10% Shareholder or
because it exceeds the annual limit provided for in Section 5.6 below, it shall to that extent constitute a Nonqualified Option. 
  
 2.22 Nonqualified Option Agreement. “Nonqualified Option Agreement” means an Option Agreement with respect to a Nonqualified Option.

  
 2.23 Option. “Option” means any option to
purchase Common Stock granted pursuant to the Plan. 
  
 2.24
Option Agreement. “Option Agreement” means the written agreement entered into between the Company and the Optionee with respect to an Option granted under the Plan. 
  
 2.25 Optionee. “Optionee” means a Participant who holds an Option. 
  
 2.26 Participant. “Participant” means a Person who holds an
Option or Restricted Stock under the Plan. 
  
 2.27 Person.
“Person” means any natural person, any corporation, limited liability company, general or limited partnership, trust, estate or unincorporated association or other entity. 
  
 2.28 Purchase Price. “Purchase Price” means the purchase price per share of Restricted Stock. 

 
 2.29 Restricted Stock. “Restricted Stock” means shares of
Common Stock issued pursuant to Section 6 hereof, subject to any restrictions and conditions as are established pursuant to such Section 6. 
  
 2.30 Stock Purchase Agreement. “Stock Purchase Agreement” means the written agreement entered into between the Company and a Participant
with respect to the purchase of Restricted Stock under the Plan. 
  
 2.31 Substitute Options. “Substitute Options” means options to purchase Common Stock to be issued by the Successor Entity or Acquiring Entity (as the case may be) in a Change of Control transaction, on terms approved by the
Administrator, in exchange for the cancellation or surrender, on consummation of the Change in Control, of Options granted under this Plan and held by employees of the Company or any Subsidiary. 
  
 2.32 Substitute Restricted Stock. “Substitute Restricted
Stock” means restricted stock to be issued by the Successor Entity or Acquiring Entity (as the case may be) in a Change of Control transaction, on terms approved by the Administrator, in exchange for the cancellation or surrender, on
consummation of the Change in Control, of Restricted Stock issued this Plan and held by employees of the Company or any Subsidiary. 
  
 2.33 10% Shareholder. “10% Shareholder” means a Person who, as of a relevant date, owns or is deemed to own (by reason of the attribution
rules applicable under Section 424(d) of the Code) stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or of an Affiliated Company. 
  
 Section 3. Eligibility 
  
 3.1 Incentive Options. Only employees of the Company or of an Affiliated Company (including officers of the Company
and members of the Board if they are employees of the Company or of an Affiliated Company) are eligible to receive Incentive Options under the Plan. 
  
 3.2 Nonqualified Options and Restricted Stock. Employees of the Company or of an Affiliated Company, officers of the Company and members of the
Board (whether or not employed by the Company or an Affiliated Company), are eligible to receive Nonqualified Options or acquire Restricted Stock under the Plan. 
  

 4 

 3.3 Section 162(m) Limitation. Subject to the provisions of Section 4.2, no employee of the
Company or of an Affiliated Company shall be eligible to be granted Options covering more than 100,000 shares of Common Stock during any calendar year. 
  
 3.4 Restrictions. Notwithstanding Sections 3.1 and 3.2 above or any other provision of this Plan to the contrary, no director or officer of the
Company or any Affiliated Company shall be eligible to receive an Option or acquire Restricted Stock, or any right to receive the same, pursuant to this Plan unless and until this Plan has been approved by a majority of the shares present and
entitled to vote at a meeting of the Company’s shareholders. 
  
 Section 4. Plan Shares 
  
 4.1 Shares
Subject to the Plan. A total of 400,000 shares of Common Stock may be issued under the Plan, subject to adjustment as to the number and kind of shares pursuant to Section 4.2 hereof. For purposes of this limitation, in the event that (a) all or
any portion of any Option or Restricted Stock granted or offered under the Plan can no longer under any circumstances be exercised or purchased, or (b) any shares of Common Stock are reacquired by the Company which were initially the subject of an
Incentive Option Agreement, Nonqualified Option Agreement or Stock Purchase Agreement, the shares of Common Stock allocable to the unexercised portion of such Option or such Stock Purchase Agreement, or the shares so reacquired, shall again be
available for grant or issuance under the Plan. 
  
 4.2 Changes
in Capital Structure. In the event that the outstanding shares of Common Stock are hereafter increased or decreased or changed into or exchanged for a different number or kind of shares or other securities of the Company by reason of a
recapitalization, stock split, reverse stock split, combination of shares, reclassification, stock dividend, or other similar change in the capital structure of the Company, then appropriate adjustments shall be made by the Administrator to the
aggregate number and kind of shares issuable thereafter under this Plan, the number and kind of shares and the price per share subject to outstanding Option Agreements and Stock Purchase Agreements and the limit on the number of shares under Section
3.3 above, all in order to preserve, as nearly as practical, but not to increase, the benefits to Participants. 
  
 Section 5. Options 
  
 5.1 Option Agreement. Each Option granted pursuant to this Plan shall be evidenced by an Option Agreement that shall specify the number of shares
subject thereto, the Exercise Price per share, and whether the Option is an Incentive Option or Nonqualified Option. As soon as is practical following the grant of an Option, an Option Agreement shall be duly executed and delivered by or on behalf
of the Company to the Optionee to whom such Option was granted. Each Option Agreement shall be in such form and contain such additional terms and conditions, not inconsistent with the provisions of this Plan, as the Administrator shall, from time to
time, deem desirable, including, without limitation, the imposition of any rights of first refusal and resale obligations upon any shares of Common Stock acquired pursuant to an Option Agreement. Each Option Agreement may be different from each
other Option Agreement. 
  
 5.2 Exercise Price. The
Exercise Price per share of Common Stock covered by each Option shall be determined by the Administrator, subject to the following: (a) the Exercise Price of an Incentive Option and any Nonqualified Option shall not be less than 100% of Fair Market
Value on the date that Option is granted, and (b) notwithstanding the foregoing, if the Person to whom an Incentive Option is granted is a 10% Shareholder on the date of grant, the Exercise Price shall not be less than 110% of Fair Market Value on
the date the Option is granted. However, an Option may be granted with an exercise price lower than that set forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution for another option in a manner
satisfying the provisions of Section 424 of the Code. 
  
 5.3
Payment of Exercise Price. Payment of the Exercise Price shall be made upon exercise of an Option and may be made, in the discretion of the Administrator, subject to any legal restrictions, by: (a) cash; (b) check; (c) the surrender of shares
of Common Stock acquired pursuant to the exercise of an Option (provided that shares acquired pursuant to the exercise of options granted by the Company must have been held by the Optionee for the requisite period necessary to avoid a charge to the
Company’s earnings for financial reporting purposes), which surrendered shares shall be valued at Fair Market Value as of the date of such exercise; (d) the cancellation of 

  

 5 

 
indebtedness of the Company to the Optionee; (e) the waiver of compensation due or accrued to the Optionee for services rendered; (f) a “same day
sale” commitment from the Optionee and an NASD Dealer whereby the Optionee irrevocably elects to exercise the Option and to sell a portion of the shares so purchased to pay for the Exercise Price and whereby the NASD Dealer irrevocably commits
upon receipt of such shares to forward the Exercise Price directly to the Company; (g) a “margin” commitment from the Optionee and an NASD Dealer whereby the Optionee irrevocably elects to exercise the Option and to pledge the shares so
purchased to the NASD Dealer in a margin account as security for a loan from the NASD Dealer in the amount of the Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt of such shares to forward the Exercise Price directly to
the Company; or (g) any combination of the foregoing methods of payment or any other consideration or method of payment as shall be permitted by applicable law. 
  

5.4 Term and Termination of Options. The term and provisions for termination of each Option shall be as fixed by the Administrator, but no
Option may be exercisable more than ten (10) years after the date it is granted. An Incentive Option granted to a person who is a 10% Shareholder on the date of grant shall not be exercisable more than five (5) years after the date it is granted.

  
 5.5 Vesting and Exercise of Options. Each Option shall
vest and become exercisable in one or more installments at such time or times and subject to such conditions, including without limitation the achievement of specified performance goals or objectives, as shall be determined by the Administrator.

  
 5.6 Annual Limit on Incentive Options. To the extent
required for “incentive stock option” treatment under Section 422 of the Code, the aggregate Fair Market Value (determined as of the time of grant) of the Common Stock, with respect to which Incentive Options granted under this Plan and
any other plan of the Company or any Affiliated Company become exercisable for the first time by an Optionee during any calendar year, shall not exceed $100,000. 
  
 5.7 Nontransferability of Options. Except as otherwise provided by the Administrator in an Option Agreement and as
permissible under applicable law, no Option shall be assignable or transferable except by will or the laws of descent and distribution, and during the life of the Optionee shall be exercisable only by such Optionee. 
  
 5.8 No Rights as Shareholder Prior to Exercise. An Optionee or
permitted transferee of an Option shall have no rights or privileges as a shareholder with respect to any shares covered by an Option until such Option has been duly exercised and certificates representing shares purchased upon such exercise have
been issued to such person. 
  
 5.9 Unvested Shares. The
Administrator shall have the discretion to grant Options which are exercisable for unvested shares of Common Stock. Should the Optionee cease being an employee, an officer or a director of the Company while owning such unvested shares, the Company
shall have the right to repurchase, at the exercise price paid per share, any or all of those unvested shares. The terms upon which such repurchase right shall be exercisable (including the period and procedure for exercise and the appropriate
vesting schedule for the purchased shares) shall be established by the Administrator and set forth in the document evidencing such repurchase right. 
  
 Section 6. Restricted Stock 
  
 6.1 Issuance and Sale of Restricted Stock. The Administrator shall have the right to issue, at a Purchase Price determined by the Administrator
(provided that such Purchase Price shall not be less than Fair Market Value), shares of Common Stock subject to such terms, restrictions and conditions as the Administrator may determine at the time of grant (“Restricted Stock”). Such
conditions may include, but are not limited to, continued employment or the achievement of specified performance goals or objectives. 
  
 6.2 Restricted Stock Purchase Agreements. A Participant shall have no rights with respect to the shares of Restricted Stock covered by a Stock
Purchase Agreement until the Participant has paid the full Purchase Price to the Company in the manner set forth in Section 6.3 hereof and has executed and delivered to the Company the Stock Purchase Agreement. Each Stock Purchase Agreement shall be
in such form, and shall set forth the 

  

 6 

 
Purchase Price and such other terms, conditions and restrictions of the Restricted Stock, not inconsistent with the provisions of this Plan, as the
Administrator shall, from time to time, deem desirable. Each Stock Purchase Agreement may be different from each other Stock Purchase Agreement. 
  
 6.3 Payment of Purchase Price. Subject to any legal restrictions, payment of the Purchase Price may be made, in the discretion of the
Administrator, by: (a) cash; (b) check; (c) the surrender of shares of Common Stock owned by the Participant that have been held by the Participant for the requisite period necessary to avoid a charge to the Company’s earnings for financial
reporting purposes, which surrendered shares shall be valued at Fair Market Value as of the date of such acceptance; (d) the cancellation of indebtedness owed by the Company to the Participant; (e) the waiver of compensation due or accrued to the
Participant for services rendered; or (f) any combination of the foregoing methods of payment or any other consideration or method of payment as shall be permitted by applicable corporate law. 
  
 6.4 Rights as a Shareholder. Upon complying with the provisions of
Section 6.2 hereof, a Participant shall have the rights of a shareholder with respect to the Restricted Stock purchased pursuant to a Stock Purchase Agreement, including voting and dividend rights, subject to the terms, restrictions and conditions
as are set forth in such Stock Purchase Agreement. Unless the Administrator shall determine otherwise, certificates evidencing shares of Restricted Stock shall remain in the possession of the Company until such shares have vested in accordance with
the terms of the Stock Purchase Agreement. 
  
 6.5
Restrictions. Shares of Restricted Stock may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of except as specifically provided in the Stock Purchase Agreement. In the event of termination of a
Participant’s employment or service as a director of the Company for any reason whatsoever (including death or disability), the Stock Purchase Agreement may provide, in the discretion of the Administrator, that the Company shall have the right,
exercisable at the discretion of the Administrator, to repurchase, at the original Purchase Price, any shares of Restricted Stock which have not vested as of the date of termination. 
  
 6.6 Vesting of Restricted Stock. Subject to Section 6.5 above, the Stock Purchase Agreement shall specify the date or
dates, or the performance goals or objectives which must be achieved, and any other conditions on which the Restricted Stock may vest. 
  
 6.8 Dividends. If payment for shares of Restricted Stock is made by promissory note, any cash dividends paid with respect to the Restricted Stock
may be applied, in the discretion of the Administrator, to the repayment of such note. 
  
 Section 7. Administration of the Plan 
  
 7.1 Administrator. Authority to control and manage the operation and administration of the Plan shall be vested in the Board, which may delegate such responsibilities in whole or in part to a committee
consisting of two (2) or more members of the Board who are Non-Employee Directors of the Company (the “Committee”). Members of the Committee may be appointed from time to time by, and shall serve at the pleasure of, the Board. The Board
may limit the composition of the Committee to those persons necessary to comply with the requirements of Section 162(m) of the Code and Section 16 of the Exchange Act. As used herein, the term “Administrator” means the Board or, with
respect to any matter as to which responsibility has been delegated to the Committee, the term Administrator shall mean the Committee. 
  
 7.2 Powers of the Administrator. In addition to any other powers or authority conferred upon the Administrator elsewhere in the Plan or by law, the
Administrator shall have full power and authority: (a) to determine the Persons to whom, and the time or times at which, Incentive Options or Nonqualified Options or rights to purchase Restricted Stock shall be granted, the number of shares to be
represented by each Option and the number of shares of Restricted Stock to be offered, and the consideration to be received by the Company upon the exercise of such Options or sale of such Restricted Stock; (b) to interpret the Plan; (c) to create,
amend or rescind rules and regulations relating to the Plan; (d) to determine the terms, conditions and restrictions contained in, and the form of, Option Agreements and Stock Purchase Agreements; (e) to determine the identity or capacity of any
Persons who may be entitled to exercise a Participant’s rights under any Option or Stock Purchase Agreement under the Plan; (f) to correct any defect or supply any omission or reconcile any inconsistency in the Plan or in any Option Agreement

  

 7 

 
or Stock Purchase Agreement; (g) to accelerate the vesting of any Option or release or waive any repurchase rights of the Company with respect to or
restrictions on Restricted Stock; (h) to extend the exercise date of any Option or acceptance date of any Restricted Stock; (i) to provide for rights of first refusal and/or repurchase rights; (j) to amend outstanding Option Agreements and Stock
Purchase Agreements to provide for, among other things, any change or modification which the Administrator could have included in the original Agreement or in furtherance of the powers provided for herein; and (k) to make all other determinations
necessary or advisable for the administration of the Plan, but only to the extent not contrary to the express provisions of the Plan. Any action, decision, interpretation or determination made in good faith by the Administrator in the exercise of
its authority conferred upon it under the Plan shall be final and binding on the Company and all Participants. 
  
 7.3 Limitation on Liability. No employee of the Company or member of the Board or Committee shall be subject to any liability with respect to
duties under the Plan unless that Person acts fraudulently or in bad faith. To the extent permitted by law, the Company shall indemnify each member of the Board or Committee, and any employee of the Company with duties under the Plan, who was or is
a party, or is threatened to be made a party, to any threatened, pending or completed proceeding, whether civil, criminal, administrative or investigative, by reason of such Person’s conduct in the performance of duties under the Plan.

  
 Section 8. Change in Control 
  
 8.1 Change in Control. In order to preserve a Participant’s
rights in the event of a Change in Control of the Company: 
  
 (a) Acceleration of Vesting and Lapse of Restrictions. Except as otherwise provide in Paragraph 8.1(b) below, if a Change of Control is consummated, Options that would not otherwise have become vested
immediately prior to consummation of such Change in Control shall become fully vested, and any restrictions on Restricted Stock that would not otherwise have lapsed immediately prior to such Change in Control shall lapse, in each case effective
immediately prior to consummation of that Change in Control. 
  
 (b) Exception to Acceleration Provisions. Notwithstanding Paragraph 8.1(a) above, but subject to Paragraph 8.1(e) below, Options held by employees of the Company or any Subsidiary that have not previously
become vested shall not become vested, and restrictions on Restricted Stock held by employees of the Company or any Subsidiary as to which the restrictions have not previously lapsed shall not lapse, by reason of the consummation of a Change in
Control if, pursuant to the terms of the definitive agreement providing for consummation of the Change in Control transaction, the Surviving or Acquiring Entity (as the case may be) in such Change in Control transaction, (i) assumes, or agrees to
and does issue to such employees Substitute Options for, such outstanding Options, and (ii) agrees to and does issue Substitute Restricted Stock in exchange for the cancellation and surrender of the Restricted Stock held by employees of the Company
or any Subsidiary, or (iii) agrees to and does issue, on terms and conditions approved by the Administrator, other incentives in exchange for the Options and Restricted Stock held by employees of the Company or any Subsidiary under a new incentive
program (“New Incentives”) that the Administrator, in its sole discretion, determines are of a value that is comparable to the value of the Options and Restricted Stock being exchanged therefor by employees of the Company or any
Subsidiary. The foregoing exception shall not, however, apply to Options or Restricted Stock held by any Non-Employee Directors. 
  
 (c) Special Vesting Provisions On Assumption or Substitution of Options or Restricted Stock. In the event that the Surviving or
Acquiring Entity (as the case may be) in any Change in Control transaction assumes, or issues Substitute Options or New Incentives for, the outstanding Options and Substitute Restricted Stock or New Incentives for the outstanding Restricted Stock,
held by employees of the Company, on terms approved by the Administrator, as provided in Paragraph 8.1(b) above, then, the terms governing the vesting of any assumed Options shall be modified to provide, and the terms governing any Substitute
Options or Substitute Restricted Stock or New Incentives (as the case may be) shall provide, that any unvested assumed or Substitute Options (as the case may be) held by a Participant shall immediately become fully vested and exercisable, and any
restrictions on any Substitute Restricted Stock held by a Participant shall immediately lapse, if there occurs an Involuntary Termination of the Continuous Service of such Participant, in connection with, or on or within twelve (12) months of, the
consummation of the Change in Control. Any such accelerated vesting of Options or Substitute Options or lapse of restrictions on Restricted Stock or Substitute Restricted Stock, or of New Incentives (as the case 

  

 8 

 
may be), due to an Involuntary Termination of the Continuous Service of a Participant, as provided for in this Paragraph 8.1(c), shall be deemed to have
occurred on the day immediately prior to the date of such Involuntary Termination of Continuous Service. 
  
 (d) Net Exercise Provisions. If the terms of an outstanding Option Agreement provide for accelerated vesting, or the Administrator
elects to accelerate any outstanding Options in the event of the consummation of a Change in Control, or to the extent that an Option is vested and not yet exercised, the Administrator in its discretion may provide, in connection with the Change in
Control transaction, for the purchase or cancellation and exchange of any or all of such Options for an amount of cash or other property having a value equal to the difference (or “spread”) between: (i) the value of the cash or other
property that the Participant would have received pursuant to the Change in Control transaction in exchange for the shares issuable upon exercise of the Option had the Option been exercised immediately prior to the Change in Control, and (ii) the
Exercise Price of the Option. 
  
 (e)
Discretionary Authority of the Committee. Notwithstanding anything to the contrary that may be contained elsewhere in this Section 8, including in Paragraph 8.1(b), the Administrator shall have the power and authority, in its sole discretion,
to accelerate the vesting of any or all of the Options and/or the lapse of the restrictions on any or all of the Restricted Stock even if the Surviving or Acquiring Entity in a Change in Control transaction agrees to assume the Options outstanding
under this Plan, or issue Substitute Options or Restricted Stock or New Incentives for the then outstanding Options or Restricted Stock, as contemplated in Paragraph 8.1(b) above. Additionally, the terms and conditions relating to the vesting of
Options and the lapse of restrictions on Restricted Stock in the event of the consummation of a Change in Control may vary from Option Agreement to Option Agreement and from Restricted Stock Purchase Agreement to Restricted Stock Purchase Agreement,
as the Administrator, in its discretion, deems appropriate. For example, the Administrator, in its discretion, may provide for full acceleration of vesting of Options or of the lapse of restrictions on Restricted Stock in certain Option Agreements
or certain Restricted Stock Purchase Agreements and not in others. 
  
 (f) Termination of Options on Consummation of Change in Control. Notwithstanding any provision to the contrary that may be contained in this Plan or in any Option Agreement for Options granted under this Plan,
all outstanding Options that have not been exercised or deemed exercised at or before the consummation of a Change of Control transaction shall terminate and cease to be exercisable upon consummation of such Change in Control except to the extent
that the Options are assumed by the Surviving or Acquiring Entity pursuant to the terms of the Change in Control transaction. 
  
 (g) Notice of Change in Control. If the Company enters into a definitive agreement that provides for the consummation of a Change
in Control of the Company, the Administrator shall cause written notice of such proposed Change in Control transaction to be given to Participants not less than fifteen (15) days prior to the anticipated effective date of the proposed Change in
Control transaction; provided, however, that any delay in giving or any failure to give such notice shall not affect the validity of nor shall it entitle any Participant to obtain a delay or postponement in the consummation of the
Change in Control transaction. 
  
 8.2 Effect of Abandonment of
Change in Control Transaction. Notwithstanding anything to the contrary that may be contained in this Section 8 or elsewhere in this Plan, if an acceleration of the vesting of any Options or the lapse of restrictions on any Restricted Stock
occurs is deemed to have occurred immediately prior to the consummation of a Change in Control, pursuant to Paragraph 8.1(a) above or any other provision of this Plan, but the Change in Control transaction is terminated or abandoned, for any reason
whatsoever, before consummation thereof, then such acceleration of vesting and lapse of restrictions shall be deemed to have not occurred and the vesting schedule for this Option and the schedule for lapse of restrictions on Restricted Stock, as in
effect prior to such acceleration, shall be reinstated. 
  
 Section 9. Amendment and Termination of The Plan 
  
 9.1 Amendments. The Board may from time to time alter, amend, suspend or terminate the Plan in such respects as the Board may deem advisable. No such alteration, amendment, suspension or termination shall be made which shall
substantially affect or impair the rights of any Participant under an outstanding Option Agreement or Stock Purchase Agreement without such Participant’s consent. The Board may alter or amend the Plan to comply 

  

 9 

 
with requirements under the Code relating to Incentive Options or other types of options which give Optionees more favorable tax treatment than that
applicable to Options granted under this Plan as of the date of its adoption. Upon any such alteration or amendment, any outstanding Option granted hereunder may, if the Administrator so determines and if permitted by applicable law, be subject to
the more favorable tax treatment afforded to an Optionee pursuant to such terms and conditions. 
  
 9.2 Plan Termination. Unless the Plan shall theretofore have been terminated, the Plan shall terminate on the tenth (10th) anniversary of the
Effective Date and no Options or Restricted Stock may be granted under the Plan thereafter, but Option Agreements and Stock Purchase Agreements then outstanding shall continue in full force and effect in accordance with their respective terms.

  
 Section 10. Tax Withholding 
  
 10.1 Withholding. The Company shall have the power to withhold, or
require a Participant to remit to the Company, an amount sufficient to satisfy any applicable Federal, state, and local tax withholding requirements with respect to any Options exercised or Restricted Stock issued under the Plan. To the extent
permissible under applicable tax, securities and other laws, the Administrator may, in its sole discretion and upon such terms and conditions as it may deem appropriate, permit a Participant to satisfy his or her obligation to pay any such tax, in
whole or in part, up to an amount determined on the basis of the highest marginal tax rate applicable to such Participant, by (a) directing the Company to apply shares of Common Stock to which the Participant is entitled as a result of the exercise
of an Option or as a result of the purchase of or lapse of restrictions on Restricted Stock or (b) delivering to the Company shares of Common Stock owned by the Participant. The shares of Common Stock so applied or delivered in satisfaction of the
Participant’s tax withholding obligation shall be valued at their Fair Market Value as of the date of measurement of the amount of income subject to withholding. 
  
 Section 11. Miscellaneous 
  
 11.1 Benefits Not Alienable. Except as otherwise provided above in this Plan, benefits under the Plan may not be
assigned or alienated, whether voluntarily or involuntarily. Any unauthorized attempt at assignment, transfer, pledge or other disposition shall be without effect. 
  
 11.2 No Enlargement of Employee Rights. This Plan is strictly a voluntary undertaking on the part of the Company and
shall not be deemed to constitute a contract between the Company and any Participant or to be consideration for, or an inducement to, or a condition of, the employment of any Participant. Nothing contained in the Plan shall be deemed to give to any
Participant a right to be retained as an employee of the Company or any Affiliated Company or to interfere with the right of the Company or any Affiliated Company to discharge any Participant at any time. 
  
 11.3 Application of Funds. The proceeds received by the Company from
the sale of Common Stock pursuant to Option Agreements and Stock Purchase Agreements, except as may otherwise be provided herein, will be used for general corporate purposes. 
  
 11.4 Annual Reports. While any Option remains outstanding, the Company will furnish to each Participant that is the
holder of an Option, or any permitted assignee thereof, who does not otherwise receive such materials, copies of all reports, proxy statements and other communications that the Company distributes generally to its shareholders. 
  

 10

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