Document:

EX-10.1

 Exhibit 10.1 
  

FIRST AMERICAN FINANCIAL CORPORATION 

2010 Incentive Compensation Plan 

Amended and Restated 

Effective as of May 9, 2017 

 TABLE OF CONTENTS 
  

							
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	ARTICLE I. ESTABLISHMENT; PURPOSES; AND DURATION	  	 	1	 
	1.1.	  	Establishment of the Plan.	  	 	1	 
	1.2.	  	Purposes of the Plan.	  	 	1	 
	1.3.	  	Duration of the Plan.	  	 	1	 
		
	ARTICLE II. DEFINITIONS	  	 	2	 
	2.1.	  	“Affiliate”	  	 	2	 
	2.2.	  	“Award”	  	 	2	 
	2.3.	  	“Award Agreement”	  	 	2	 
	2.4.	  	“Beneficial Ownership”	  	 	2	 
	2.5.	  	“Board” or “Board of Directors”	  	 	3	 
	2.6.	  	“Cause”	  	 	3	 
	2.7.	  	“Change of Control”	  	 	3	 
	2.8.	  	“Code”	  	 	5	 
	2.9.	  	“Committee”	  	 	5	 
	2.10.	  	“Company Incumbent Board”	  	 	5	 
	2.11.	  	“Company Proxy Contest”	  	 	5	 
	2.12.	  	“Company Surviving Corporation”	  	 	5	 
	2.13.	  	“Covered Employee”	  	 	5	 
	2.14.	  	“Director”	  	 	6	 
	2.15.	  	“Disability”	  	 	6	 
	2.16.	  	“Dividend Equivalents”	  	 	6	 
	2.17.	  	“Effective Date”	  	 	6	 
	2.18.	  	“Employee”	  	 	6	 
	2.19.	  	“Exchange Act”	  	 	6	 
	2.20.	  	“Fair Market Value”	  	 	6	 
	2.21.	  	“Fiscal Year”	  	 	7	 
	2.22.	  	“Freestanding SAR”	  	 	7	 
	2.23.	  	“Grant Price”	  	 	7	 
	2.24.	  	“Incentive Stock Option”	  	 	7	 
	2.25.	  	“Insider”	  	 	7	 
	2.26.	  	“Non-Control Acquisition”	  	 	7	 
	2.27.	  	“Non-Control Transaction”	  	 	7	 
	2.28.	  	“Non-Employee Director”	  	 	7	 
	2.29.	  	“Nonqualified Stock Option”	  	 	7	 
	2.30.	  	“Notice”	  	 	7	 
	2.31.	  	“Option”	  	 	7	 
	2.32.	  	“Option Price”	  	 	8	 
	2.33.	  	“Other Stock-Based Award”	  	 	8	 
	2.34.	  	“Participant”	  	 	8	 
	2.35.	  	“Performance-Based Compensation”	  	 	8	 
	2.36.	  	“Performance Measure”	  	 	8	 
	2.37.	  	“Performance Period”	  	 	8	 
	2.38.	  	“Performance Share”	  	 	8	 

  
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	2.39.	  	“Performance Unit”	  	 	8	 
	2.40.	  	“Period of Restriction”	  	 	8	 
	2.41.	  	“Person”	  	 	8	 
	2.42.	  	“Qualified Change of Control”	  	 	8	 
	2.43.	  	“Related Entity”	  	 	8	 
	2.44.	  	“Restricted Stock”	  	 	9	 
	2.45.	  	“Restricted Stock Unit”	  	 	9	 
	2.46.	  	“Retirement”	  	 	9	 
	2.47.	  	“Rule 16b-3”	  	 	9	 
	2.48.	  	“Securities Act”	  	 	9	 
	2.49.	  	“Share”	  	 	9	 
	2.50.	  	“Stock Appreciation Right”	  	 	9	 
	2.51.	  	“Subject Person”	  	 	9	 
	2.52.	  	“Subsidiary”	  	 	9	 
	2.53.	  	“Substitute Awards”	  	 	9	 
	2.54.	  	“Tandem SAR”	  	 	9	 
	2.55.	  	“Termination”	  	 	9	 
	2.56.	  	“Voting Securities”	  	 	10	 
		
	ARTICLE III. ADMINISTRATION	  	 	10	 
	3.1.	  	General.	  	 	10	 
	3.2.	  	Committee.	  	 	10	 
	3.3.	  	Authority of the Committee.	  	 	10	 
	3.4.	  	Award Agreements.	  	 	12	 
	3.5.	  	Discretionary Authority; Decisions Binding.	  	 	12	 
	3.6.	  	Attorneys; Consultants.	  	 	13	 
	3.7.	  	Delegation of Administration.	  	 	13	 
		
	ARTICLE IV. SHARES SUBJECT TO THE PLAN AND ANNUAL AWARD LIMITS	  	 	13	 
	4.1.	  	Number of Shares Available for Grants.	  	 	13	 
	4.2.	  	Annual Award Limits.	  	 	14	 
	4.3.	  	Adjustments in Authorized Shares.	  	 	15	 
	4.4.	  	No Limitation on Corporate Actions.	  	 	15	 
		
	ARTICLE V. ELIGIBILITY AND PARTICIPATION	  	 	16	 
	5.1.	  	Eligibility.	  	 	16	 
	5.2.	  	Actual Participation.	  	 	16	 
		
	ARTICLE VI. STOCK OPTIONS	  	 	16	 
	6.1.	  	Grant of Options.	  	 	16	 
	6.2.	  	Award Agreement.	  	 	16	 
	6.3.	  	Option Price.	  	 	17	 
	6.4.	  	Duration of Options.	  	 	17	 
	6.5.	  	Exercise of Options.	  	 	17	 
	6.6.	  	Payment.	  	 	17	 

  
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	6.7.	  	Rights as a Shareholder.	  	 	18	 
	6.8.	  	Termination of Employment or Service.	  	 	18	 
	6.9.	  	Limitations on Incentive Stock Options.	  	 	19	 
	6.10.	  	No Repricing.	  	 	19	 
		
	ARTICLE VII. STOCK APPRECIATION RIGHTS	  	 	20	 
	7.1.	  	Grant of SARs.	  	 	20	 
	7.2.	  	Grant Price.	  	 	20	 
	7.3.	  	Exercise of Tandem SARs.	  	 	20	 
	7.4.	  	Exercise of Freestanding SARs.	  	 	20	 
	7.5.	  	Award Agreement.	  	 	21	 
	7.6.	  	Term of SARs.	  	 	21	 
	7.7.	  	Payment of SAR Amount.	  	 	21	 
	7.8.	  	Rights as a Shareholder.	  	 	21	 
	7.9.	  	Termination of Employment or Service.	  	 	21	 
	7.10.	  	No Repricing.	  	 	21	 
		
	ARTICLE VIII. RESTRICTED STOCK AND RESTRICTED STOCK UNITS	  	 	22	 
	8.1.	  	Awards of Restricted Stock and Restricted Stock Units.	  	 	22	 
	8.2.	  	Award Agreement.	  	 	22	 
	8.3.	  	Nontransferability of Restricted Stock.	  	 	22	 
	8.4.	  	Period of Restriction and Other Restrictions.	  	 	22	 
	8.5.	  	Delivery of Shares, Payment of Restricted Stock Units.	  	 	22	 
	8.6.	  	Forms of Restricted Stock Awards.	  	 	23	 
	8.7.	  	Voting Rights.	  	 	23	 
	8.8.	  	Dividends and Other Distributions.	  	 	23	 
	8.9.	  	Termination of Employment or Service.	  	 	23	 
	8.10.	  	Compliance With Code Section 409A.	  	 	24	 
		
	ARTICLE IX. PERFORMANCE UNITS AND PERFORMANCE SHARES	  	 	24	 
	9.1.	  	Grant of Performance Units and Performance Shares.	  	 	24	 
	9.2.	  	Value of Performance Units and Performance Shares.	  	 	24	 
	9.3.	  	Earning of Performance Units and Performance Shares.	  	 	24	 
	9.4.	  	Form and Timing of Payment of Performance Units and Performance Shares.	  	 	25	 
	9.5.	  	Rights as a Shareholder.	  	 	25	 
	9.6.	  	Termination of Employment or Service.	  	 	25	 
	9.7.	  	Compliance With Code Section 409A.	  	 	25	 
		
	ARTICLE X. OTHER STOCK-BASED AWARDS	  	 	25	 
	10.1.	  	Other Stock-Based Awards.	  	 	25	 
	10.2.	  	Value of Other Stock-Based Awards.	  	 	26	 
	10.3.	  	Payment of Other Stock-Based Awards.	  	 	26	 
	10.4.	  	Termination of Employment or Service.	  	 	26	 
	10.5.	  	Compliance With Code Section 409A.	  	 	26	 

  
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	ARTICLE XI. PERFORMANCE MEASURES	  	 	26	 
	11.1.	  	Performance Measures.	  	 	26	 
	11.2.	  	Evaluation of Performance.	  	 	27	 
	11.3.	  	Adjustment of Performance-Based Compensation.	  	 	28	 
	11.4.	  	Committee Discretion.	  	 	28	 
		
	ARTICLE XII. DIVIDEND EQUIVALENTS	  	 	28	 
	12.1.	  	Dividend Equivalents.	  	 	28	 
		
	ARTICLE XIII. TRANSFERABILITY OF AWARDS; BENEFICIARY DESIGNATION	  	 	29	 
	13.1.	  	Transferability of Incentive Stock Options.	  	 	29	 
	13.2.	  	All Other Awards.	  	 	29	 
	13.3.	  	Beneficiary Designation.	  	 	29	 
		
	ARTICLE XIV. RIGHTS OF PARTICIPANTS	  	 	30	 
	14.1.	  	Rights or Claims.	  	 	30	 
	14.2.	  	Adoption of the Plan.	  	 	30	 
	14.3.	  	Vesting.	  	 	30	 
	14.4.	  	No Effects on Benefits.	  	 	31	 
	14.5.	  	One or More Types of Awards.	  	 	31	 
		
	ARTICLE XV. CHANGE OF CONTROL	  	 	31	 
	15.1.	  	Treatment of Outstanding Awards.	  	 	31	 
	15.2.	  	No Implied Rights; Other Limitations.	  	 	33	 
	15.3.	  	Termination, Amendment, and Modifications of Change of Control Provisions.	  	 	33	 
	15.4.	  	Compliance with Code Section 409A.	  	 	33	 
		
	ARTICLE XVI. AMENDMENT, MODIFICATION, AND TERMINATION	  	 	34	 
	16.1.	  	Amendment, Modification, and Termination.	  	 	34	 
	16.2.	  	Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events.	  	 	35	 
		
	ARTICLE XVII. TAX WITHHOLDING AND OTHER TAX MATTERS	  	 	35	 
	17.1.	  	Tax Withholding.	  	 	35	 
	17.2.	  	Withholding or Tendering Shares.	  	 	35	 
	17.3.	  	Restrictions.	  	 	36	 
	17.4.	  	Special ISO Obligations.	  	 	36	 
	17.5.	  	Section 83(b) Election.	  	 	36	 
	17.6.	  	No Guarantee of Favorable Tax Treatment.	  	 	36	 
		
	ARTICLE XVIII. LIMITS OF LIABILITY; INDEMNIFICATION	  	 	37	 
	18.1.	  	Limits of Liability.	  	 	37	 
	18.2.	  	Indemnification.	  	 	37	 
		
	ARTICLE XIX. SUCCESSORS	  	 	38	 

  
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	19.1.	  	General.	  	 	38	 
		
	ARTICLE XX. MISCELLANEOUS	  	 	38	 
	20.1.	  	Drafting Context.	  	 	38	 
	20.2.	  	Forfeiture Events.	  	 	38	 
	20.3.	  	Severability.	  	 	39	 
	20.4.	  	Transfer, Leave of Absence.	  	 	39	 
	20.5.	  	Exercise and Payment of Awards.	  	 	39	 
	20.6.	  	Deferrals.	  	 	39	 
	20.7.	  	Loans.	  	 	40	 
	20.8.	  	No Effect on Other Plans.	  	 	40	 
	20.9.	  	Section 16 of Exchange Act and Code Section 162(m).	  	 	40	 

							
	20.10.	    	Requirements of Law; Limitations on Awards.	  	 	40	 
	20.11.	    	Participants Deemed to Accept Plan.	  	 	41	 
	20.12.	    	Governing Law.	  	 	42	 
	20.13.	    	Plan Unfunded.	  	 	42	 
	20.14.	    	Administration Costs.	  	 	42	 
	20.15.	    	Uncertificated Shares.	  	 	42	 
	20.16.	    	No Fractional Shares.	  	 	42	 
	20.17.	    	Deferred Compensation.	  	 	42	 
	20.18.	    	Employees Based Outside of the United States.	  	 	42	 

  
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 FIRST AMERICAN FINANCIAL CORPORATION 

2010 INCENTIVE COMPENSATION PLAN 

Amended and Restated 

Effective as of May 9, 2017 

First American Financial Corporation, a Delaware corporation (the “Company”), has adopted First American
Financial Corporation 2010 Incentive Compensation Plan (the “Plan”) for the benefit of non-employee directors of the Company and officers and eligible employees of the Company and any
Subsidiaries and Affiliates (as each term defined below), as follows: 
 ARTICLE I. 

ESTABLISHMENT; PURPOSES; AND DURATION 

1.1.  Establishment of the Plan.    The Company hereby establishes this incentive compensation
plan to be known as “First American Financial Corporation 2010 Incentive Compensation Plan”, as set forth in this document. The Plan permits the grant of Nonqualified Stock Options, Incentive Stock Options, Stock Appreciation Rights,
Restricted Stock, Restricted Stock Units, Performance Units, Performance Shares and Other Stock-Based Awards. The Plan was adopted by the Board of Directors (as defined below) on May 28, 2010 and approved by The First American Corporation, as
the Company’s sole shareholder, on May 28, 2010. For purposes of Section 422 of the Code and otherwise, the Plan became effective on May 28, 2010 (the “Effective Date”). The Plan shall remain in effect as
provided in Section 1.3. 
 1.2. Purposes of the Plan.    The purposes of the Plan are to
provide additional incentives to non-employee directors of the Company and to those officers and employees of the Company, Subsidiaries and Affiliates whose substantial contributions are essential to the
continued growth and success of the business of the Company and the Subsidiaries and Affiliates, in order to strengthen their commitment to the Company and the Subsidiaries and Affiliates, and to attract and retain competent and dedicated
individuals whose efforts will result in the long-term growth and profitability of the Company and to further align the interests of such non-employee directors, officers and employees with the interests of
the shareholders of the Company. To accomplish such purposes, the Plan provides that the Company may grant Nonqualified Stock Options, Incentive Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Units,
Performance Shares and Other Stock-Based Awards. 
 1.3. Duration of the Plan.    The Plan shall
commence on the Effective Date, as described in Section 1.1, and shall remain in effect, subject to the right of the Board of Directors to amend or terminate the Plan at any time pursuant to Article XVII, until all Shares subject to it shall
have been delivered, and any restrictions on such Shares have lapsed, pursuant to the Plan’s provisions. However, in no event may an Award be granted under the Plan on or after ten years from the Effective Date. 

  
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 ARTICLE II. 

DEFINITIONS 

Whenever used in the Plan, the following terms shall have the meanings set forth below, and when the meaning is intended, the
initial letter of the word shall be capitalized: 
 2.1.   “Affiliate” means any entity other
than the Company and any Subsidiary that is affiliated with the Company through stock or equity ownership or otherwise and is designated as an Affiliate for purposes of the Plan by the Committee; provided, however, that,
notwithstanding any other provisions of the Plan to the contrary, for purposes of NQSOs and SARs, if an individual who otherwise qualifies as an Employee or Non-Employee Director provides services to such an
entity and not to the Company or a Subsidiary, such entity may only be designated an Affiliate if the Company qualifies as a “service recipient,” within the meaning of Code Section 409A, with respect to such individual; provided
further that such definition of “service recipient” shall be determined by (a) applying Code Section 1563(a)(1), (2) and (3), for purposes of determining a controlled group of corporations under Code Section 414(b), using the
language “at least 50 percent” instead of “at least 80 percent” each place it appears in Code Section 1563(a)(1), (2) and (3), and by applying Treasury Regulations Section 1.414(c)-2, for
purposes of determining trades or businesses (whether or not incorporated) that are under common control for purposes of Code Section 414(c), using the language “at least 50 percent” instead of “at least 80 percent” each place it
appears in Treasury Regulations Section 1.414(c)-2, and (b) where the use of Shares with respect to the grant of an Option or SAR to such an individual is based upon legitimate business criteria, by
applying Code Section 1563(a)(1), (2) and (3), for purposes of determining a controlled group of corporations under Code Section 414(b), using the language “at least 20 percent” instead of “at least 80 percent” at each place it
appears in Code Section 1563(a)(1), (2) and (3), and by applying Treasury Regulations Section 1.414(c)-2, for purposes of determining trades or businesses (whether or not incorporated) that are under common
control for purposes of Code Section 414(c), using the language “at least 20 percent” instead of “at least 80 percent” at each place it appears in Treasury Regulations Section 1.414(c)-2.

 2.2. “Award” means, individually or collectively, a grant under the Plan of Nonqualified Stock Options,
Incentive Stock Options, Stock Appreciation Rights, Restricted Stock Awards, Restricted Stock Units, Performance Shares, Performance Units, and Other Stock-Based Awards. 

2.3.   “Award Agreement” means either: (a) a written agreement setting forth the terms and
provisions applicable to an Award granted under the Plan, or (b) a written or electronic instrument issued by the Company to a Participant describing the terms and provisions of such Award, including any amendment or modification thereof. An
Award Agreement may be in the form of an agreement to be executed by both the Participant and the Company (or an authorized representative of the Company) or certificates, notices or similar instruments as approved by the Committee. The Committee
may provide for the use of electronic, internet or other non-paper Award Agreements, and the use of electronic, internet or other non-paper means for the acknowledgement
thereof, agreement thereto and actions thereunder by a Participant. 
 2.4.   “Beneficial
Ownership” (including correlative terms) shall have the meaning given such term in Rule 13d-3 promulgated under the Exchange Act. 

  
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 2.5.   “Board” or “Board of
Directors” means the Board of Directors of the Company. 
 2.6.   “Cause” shall have the
definition given such term in a Participant’s Award Agreement, or in the absence of any such definition, as determined in good faith by the Committee. 

2.7.   “Change of Control” means the occurrence of any of the following: 

(a)   an acquisition in one transaction or a series of related transactions (other than
directly from the Company or pursuant to Awards granted under the Plan or compensatory options or other similar awards granted by the Company) by any Person of any Voting Securities of the Company, immediately after which such Person has Beneficial
Ownership of fifty percent (50%) or more of the combined voting power of the Company’s then outstanding Voting Securities; provided, however, that in determining whether a Change of Control has occurred pursuant to this Section
2.7(a), Voting Securities of the Company which are acquired in a Non-Control Acquisition shall not constitute an acquisition that would cause a Change of Control; or 

(b)   any Person acquires in one transaction or a series of related transactions (or has
acquired during the twelve (12)-month period ending on the date of the most recent acquisition by such Person) Beneficial Ownership of Voting Securities of the Company possessing thirty-five percent (35%) or more of the combined voting power of the
Company’s then outstanding Voting Securities; provided, however, that in determining whether a Change of Control has occurred pursuant to this Section 2.7(b), Voting Securities of the Company which are acquired in a Non-Control Acquisition shall not constitute an acquisition that would cause a Change of Control; or 

(c)   the individuals who, immediately prior to the Effective Date, are members of the Board
(the “Company Incumbent Board”) cease for any reason to constitute at least a majority of the members of the Board; provided, however, that if the election, or nomination for election of any new director
was approved by a vote of at least a majority of the Company Incumbent Board, such new director shall, for purposes of the Plan, be considered as a member of the Company Incumbent Board; provided further, however, that no
individual shall be considered a member of the Company Incumbent Board if such individual initially assumed office as a result of either an actual or threatened “Election Contest” (as described in Rule
14a-11 promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board (a “Company Proxy
Contest”) including by reason of any agreement intended to avoid or settle any Election Contest or Company Proxy Contest; or 

(d)   the consummation of any merger, consolidation, recapitalization or reorganization
involving the Company unless: 
 (i)       the shareholders of the
Company, immediately before such merger, consolidation, recapitalization or reorganization, own, directly or indirectly, immediately following such merger, consolidation, recapitalization or reorganization, more than fifty percent (50%) of the
combined voting power of 

  
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the outstanding Voting Securities of the corporation resulting from such merger or consolidation or reorganization (the “Company Surviving Corporation”) in substantially the same
proportion as their ownership of the Voting Securities of the Company immediately before such merger, consolidation, recapitalization or reorganization; and 

(ii)       the individuals who were members of the Company Incumbent Board
immediately prior to the execution of the agreement providing for such merger, consolidation, recapitalization or reorganization constitute at least a majority of the members of the board of directors of the Company Surviving Corporation, or a
corporation Beneficially Owning, directly or indirectly, a majority of the voting securities of the Company Surviving Corporation, and 

(iii)      no Person, other than (A) the Company,
(B) any Related Entity, (C) any employee benefit plan (or any trust forming a part thereof) that, immediately prior to such merger, consolidation, recapitalization or reorganization, was maintained by the Company, the Company Surviving
Corporation, or any Related Entity or (D) any Person who, together with its Affiliates, immediately prior to such merger, consolidation, recapitalization or reorganization had Beneficial Ownership of fifty percent (50%) or more of the then
outstanding Voting Securities of the Company, owns, together with its Affiliates, Beneficial Ownership of fifty percent (50%) or more of the combined voting power of the Company Surviving Corporation’s then outstanding Voting Securities 

(a transaction described in clauses (d)(i) through (d)(iii) above is referred to herein as a
“Non-Control Transaction”); or 

(e)   any approval of any plan or proposal for the liquidation or dissolution of the Company;
or 
 (f)   any sale, lease, exchange, transfer or other disposition (in one transaction or a
series of related transactions) of all or substantially all of the assets or business of the Company to any Person (other than (A) a transfer or distribution to a Related Entity, or (B) a transfer or distribution to the Company’s
shareholders of the stock of a Related Entity or any other assets). 
 Notwithstanding the foregoing, a Change of Control shall not be
deemed to occur solely because any Person (the “Subject Person”) acquired Beneficial Ownership of fifty percent (50%) or more of the combined voting power of the then outstanding Voting Securities of the Company as a result of the
acquisition of Voting Securities of the Company by the Company which, by reducing the number of Voting Securities of the Company then outstanding, increases the proportional number of shares Beneficially Owned by the Subject Persons, provided
that if a Change of Control would occur (but for the operation of this sentence) as a result of the acquisition of Voting Securities by the Company and (1) before such share acquisition by the Company the Subject Person becomes the Beneficial
Owner of any new or additional Voting Securities of the Company in a related transaction or (2) after such share acquisition by the 

  
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Company the Subject Person becomes the Beneficial Owner of any new or additional Voting Securities of the Company which in either case increases the percentage of the then outstanding Voting
Securities of the Company Beneficially Owned by the Subject Person, then a Change of Control shall be deemed to occur. 
 Solely for
purposes of this Section 2.7, (1) “Affiliate” shall mean, with respect to any Person, any other Person that, directly or indirectly, controls, is controlled by, or is under common control with, such Person, and (2)
“control” (including with correlative meanings, the terms “controlling,” “controlled by” and “under common control with”), as applied to any Person, means the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of that Person, whether through the ownership of voting securities or by contract or otherwise. Any Relative (for this purpose, “Relative” means a spouse, child,
parent, parent of spouse, sibling or grandchild) of an individual shall be deemed to be an Affiliate of such individual for this purpose. None of the Company or any Person controlled by the Company shall be deemed to be an Affiliate of any holder of
Shares. 
 For the avoidance of doubt, the formation of the Company as a wholly-owned subsidiary of The First American Corporation, the
consummation of any or all of the transactions contemplated by the Separation and Distribution Agreement between the Company and The First American Corporation, dated as of June 1, 2010 (the “Separation Agreement”) and any changes to
the capital structure of the Company or the ownership of the Voting Securities of the Company made prior to the time of the consummation of the distribution of the Company’s securities to the shareholders of The First American Corporation
pursuant to the terms of the Separation Agreement, will not be considered a Change of Control for purposes of this Plan. 

2.8.  “Code” means the Internal Revenue Code of 1986, as it may be amended from time to time, including
rules and regulations promulgated thereunder and successor provisions and rules and regulations thereto. 
 2.9.
 “Committee” means the Compensation Committee of the Board of Directors or a subcommittee thereof, or such other committee designated by the Board to administer the Plan. 

2.10.          “Company Incumbent Board” shall have the
meaning provided in Section 2.7(c). 
 2.11.          “Company
Proxy Contest” shall have the meaning provided in Section 2.7(c). 

2.12.          “Company Surviving Corporation” has the
meaning provided in Section 2.7(d)(i). 
 2.13.          “Covered
Employee” means any Employee who is or may become a “covered employee,” as defined in Code Section 162(m), and who is designated, either as an individual Employee or a member of a class of Employees, by the Committee within the
shorter of (i) ninety (90) days after the beginning of the Performance Period, or (ii) the first twenty-five percent (25%) of the Performance Period, as a “Covered Employee” under the Plan for such applicable Performance Period.

  
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2.14.            “Director” means any
individual who is a member of the Board of Directors of the Company. 

2.15.            “Disability” means the inability
to engage in any substantial gainful occupation to which the relevant individual is suited by education, training or experience, by reason of any medically determinable physical or mental impairment, which condition can be expected to result in
death or continues for a continuous period of not less than twelve (12) months; provided, however, that, for purposes of ISOs, “Disability” shall mean “permanent and total disability” as set forth in Section
22(e)(3) of the Code. 
 2.16.            “Dividend
Equivalents” means the equivalent value (in cash or Shares) of dividends that would otherwise be paid on the Shares subject to an Award but that have not been issued or delivered, as described in Article XII. 

2.17.            “Effective Date” shall have the
meaning ascribed to such term in Section 1.1. 

2.18.            “Employee” means any person
designated as an employee of the Company, a Subsidiary and/or an Affiliate on the payroll records thereof. An Employee shall not include any individual during any period he or she is classified or treated by the Company, a Subsidiary or an Affiliate
as an independent contractor, a consultant, or any employee of an employment, consulting, or temporary agency or any other entity other than the Company, a Subsidiary and/or an Affiliate without regard to whether such individual is subsequently
determined to have been, or is subsequently retroactively reclassified as a common-law employee of the Company, a Subsidiary and/or an Affiliate during such period. As further provided in Section 20.4,
for purposes of the Plan, upon approval by the Committee, the term Employee may also include Employees whose employment with the Company, a Subsidiary or an Affiliate has been terminated subsequent to being granted an Award under the Plan. For the
avoidance of doubt, a Director who would otherwise be an “Employee” within the meaning of this Section 2.18 shall be considered an Employee for purposes of the Plan. 

2.19.            “Exchange Act” means the
Securities Exchange Act of 1934, as it may be amended from time to time, including the rules and regulations promulgated thereunder and successor provisions and rules and regulations thereto. 

2.20.            “Fair Market Value” means the
fair market value of the Shares as determined by the Committee by the reasonable application of such reasonable valuation method, consistently applied, as the Committee deems appropriate; provided, however, that, with respect to ISOs,
for purposes of Section 6.3 and 6.9(c), such fair market value shall be determined subject to Section 422(c)(7) of the Code; provided further, however, that (a) if the Shares are readily tradable on an established
securities market, Fair Market Value on any date shall be the last sale price reported for the Shares on such market on such date or, if no sale is reported on such date, on the last date preceding such date on which a sale was reported, or
(b) if the Shares are admitted for listing on the New York Stock Exchange or other comparable market, Fair Market Value on any date shall be the last sale price reported for the Shares on such market on such date or, if no sale is reported on
such date, on the last day preceding such date on which 

  
 -6- 

 
a sale was reported. In each case, the Committee shall determine Fair Market Value in a manner that satisfies the applicable requirements of Code Section 409A. 

2.21.            “Fiscal Year” means the calendar
year, or such other consecutive twelve-month period as the Committee may select. 

2.22.            “Freestanding SAR” means a SAR
that is granted independently of any Options, as described in Article VII. 

2.23.            “Grant Price” means the price
established at the time of grant of a SAR pursuant to Article VII, used to determine whether there is any payment due upon exercise of the SAR. 

2.24.            “Incentive Stock Option” or
“ISO” means a right to purchase Shares under the Plan in accordance with the terms and conditions set forth in Article VI and which is designated as an Incentive Stock Option and which is intended to meet the requirements of
Section 422 of the Code. 

2.25.            “Insider” means an individual
who is, on the relevant date, an officer, director or ten percent (10%) Beneficial Owner of any class of the Company’s equity securities that is registered pursuant to Section 12 of the Exchange Act, as determined by the Committee in
accordance with Section 16 of the Exchange Act. 

2.26.            
“Non-Control Acquisition” means an acquisition (whether by merger, stock purchase, asset purchase or otherwise) by (a) an employee benefit plan (or a trust forming a part thereof)
maintained by (i) the Company or (ii) any corporation or other Person of which fifty percent (50%) or more of its total value or total voting power of its Voting Securities or equity interests is owned, directly or indirectly, by the
Company (a “Related Entity”); (b) the Company or any Related Entity; (c) any Person in connection with a Non-Control Transaction; or (d) any Person that owns, together with its
Affiliates, Beneficial Ownership of fifty percent (50%) or more of the outstanding Voting Securities of the Company on the Effective Date. 

2.27.            
“Non-Control Transaction” shall have the meaning provided in Section 2.7(d). 

2.28.            
“Non-Employee Director” means a Director who is not an Employee. 

2.29.             “Nonqualified Stock Option” or
“NQSO” means a right to purchase Shares under the Plan in accordance with the terms and conditions set forth in Article VI and which is not intended to meet the requirements of Section 422 of the Code or otherwise does not meet
such requirements. 
 2.30.            “Notice”
means notice provided by a Participant to the Company in a manner prescribed by the Committee. 

2.31.            “Option” or “Stock
Option” means an Incentive Stock Option or a Nonqualified Stock Option, as described in Article VI. 

  
 -7- 

2.32.            “Option Price” means the price at
which a Share may be purchased by a Participant pursuant to an Option. 

2.33.            “Other Stock-Based Award” means
an equity-based or equity-related Award described in Section 10.1, granted in accordance with the terms and conditions set forth in Article X. 

2.34.            “Participant” means any eligible
individual as set forth in Article V who holds one or more outstanding Awards. 

2.35.            “Performance-Based Compensation”
means compensation under an Award that is intended to satisfy the requirements of Code Section 162(m) for certain performance-based compensation paid to Covered Employees. Notwithstanding the foregoing, nothing in the Plan shall be construed to mean
that an Award which does not satisfy the requirements for performance-based compensation under Code Section 162(m) does not constitute performance-based compensation for other purposes, including Code Section 409A. 

2.36.            “Performance Measure” means
performance criteria or measures as described in Section 11.1 on which the performance goals described in Article XI are based and which are approved by the Company’s shareholders pursuant to the Plan in order to qualify certain Awards as
Performance-Based Compensation in accordance with Article XI. 

2.37.            “Performance Period” means the
period of time during which the performance goals must be met in order to determine the degree of payout and/or vesting with respect to, or the amount or entitlement to, an Award. 

2.38.            “Performance Share” means an
Award of a performance share granted to a Participant, as described in Article IX. 

2.39.            “Performance Unit” means an
Award of a performance unit granted to a Participant, as described in Article IX. 

2.40.            “Period of Restriction” means
the period during which Shares of Restricted Stock or Restricted Stock Units are subject to a substantial risk of forfeiture, and, in the case of Restricted Stock, the transfer of Shares of Restricted Stock is limited in some way, as provided in
Article VIII. 
 2.41.            “Person”
means “person” as such term is used for purposes of Section 13(d) or 14(d) of the Exchange Act, including any individual, corporation, limited liability company, partnership, trust, unincorporated organization, government or any agency or
political subdivision thereof, or any other entity or any group of persons. 

2.42.            “Qualified Change of Control”
means a Change of Control that qualifies as a change in the ownership or effective control of the Company, or in the ownership of a substantial portion of the assets of the Company, within the meaning of Section 409A(a)(2)(A)(v) of the Code. 

2.43.            “Related Entity” has the meaning
provided in Section 2.26. 

  
 -8- 

2.44.            “Restricted Stock” means an Award
granted to a Participant pursuant to Article VIII. 

2.45.            “Restricted Stock Unit” means an
Award, whose value is equal to a Share, granted to a Participant pursuant to Article VIII. 

2.46.            “Retirement” means Termination
of a Participant due to either (a) retirement in accordance with any employee pension benefit plan maintained by the Company that is intended to satisfy the requirements of Section 401(a) of the Code entitling such Participant to a full pension
under such plan or (b) retirement with the consent of the Committee. 

2.47.            “Rule
16b-3” means Rule 16b-3 under the Exchange Act, or any successor rule, as the same may be amended from time to time. 

2.48.            “Securities Act” means the
Securities Act of 1933, as it may be amended from time to time, including the rules and regulations promulgated thereunder and successor provisions and rules and regulations thereto. 

2.49.            “Share” means a share of common
stock, par value $0.00001 per share, of the Company (including any new, additional or different stock or securities resulting from any change in corporate capitalization as listed in Section 4.3). 

2.50.            “Stock Appreciation Right” or
“SAR” means an Award, granted alone (a “Freestanding SAR”) or in connection with a related Option (a “Tandem SAR”), designated as a SAR, pursuant to the terms of Article VII. 

2.51.            “Subject Person” has the meaning
provided in Section 2.7. 

2.52.            “Subsidiary” means any present
or future corporation which is or would be a “subsidiary corporation” of the Company as the term is defined in Section 424(f) of the Code. 

2.53.            “Substitute Awards” means
Awards granted or Shares issued by the Company in assumption of, or in substitution or exchange for, options or other awards previously granted, or the right or obligation to grant future options or other awards, by a company acquired by the
Company, a Subsidiary and/or an Affiliate or with which the Company, a Subsidiary and/or an Affiliate combines, or otherwise in connection with any merger, consolidation, acquisition of property or stock, or reorganization involving the Company, a
Subsidiary or an Affiliate, including a transaction described in Code Section 424(a). 

2.54.            “Tandem SAR” means a SAR that is
granted in connection with a related Option pursuant to Article VII. 

2.55.            “Termination” means the time
when a Participant ceases the performance of services for the Company, any Affiliate or Subsidiary, as applicable, for any reason, with or without Cause, including a Termination by resignation, discharge, death, Disability or Retirement, but
excluding (a) a Termination where there is a simultaneous reemployment or continuing employment of a Participant by the Company, Affiliate or any Subsidiary, (b) at the 

  
 -9- 

 
discretion of the Committee, a Termination that results in a temporary severance, and (c) at the discretion of the Committee, a Termination of an Employee that is immediately followed by the
Participant’s service as a Non-Employee Director. Notwithstanding any other provisions of the Plan or any Award Agreement to the contrary, a Termination shall not be deemed to have occurred for purposes
of any provision the Plan or any Award Agreement providing for payment or distribution with respect to an Award constituting deferred compensation subject to Code Section 409A upon or following a termination of employment unless such termination is
also a “separation from service” within the meaning of Code Section 409A. 

2.56.            “Voting Securities” shall mean,
with respect to any Person that is a corporation, all outstanding voting securities of such Person entitled to vote generally in the election of the board of directors of such Person. 

ARTICLE III. 
 ADMINISTRATION

 3.1.  General.   The Committee shall have exclusive authority to operate, manage and
administer the Plan in accordance with its terms and conditions. Notwithstanding the foregoing, in its absolute discretion, the Board may at any time and from time to time exercise any and all rights, duties and responsibilities of the Committee
under the Plan, including establishing procedures to be followed by the Committee, but excluding matters which under any applicable law, regulation or rule, including any exemptive rule under Section 16 of the Exchange Act (including Rule 16b-3) or Section 162(m) of the Code, are required to be determined in the sole discretion of the Committee. If and to the extent that the Committee does not exist or cannot function, the Board may take any action
under the Plan that would otherwise be the responsibility of the Committee, subject to the limitations set forth in the immediately preceding sentence. Notwithstanding any other provision of the Plan to the contrary, any action or determination
specifically affecting or relating to an Award granted to a Non-Employee Director shall be taken or approved, by the Board or the Committee. 

3.2.  Committee.  The members of the Committee shall be appointed from time to time by, and shall
serve at the discretion of, the Board of Directors. The Committee shall consist of not less than three (3) non-employee members of the Board, each of whom satisfies such criteria of independence as the
Board may establish and such additional regulatory or listing requirements as the Board may determine to be applicable or appropriate. Appointment of Committee members shall be effective upon their acceptance of such appointment. Committee members
may be removed by the Board at any time either with or without cause, and such members may resign at any time by delivering notice thereof to the Board. Any vacancy on the Committee, whether due to action of the Board or any other reason, shall be
filled by the Board. The Committee shall keep minutes of its meetings. A majority of the Committee shall constitute a quorum and a majority of a quorum may authorize any action. 

3.3.  Authority of the Committee.    The Committee shall have full discretionary
authority to grant, pursuant to the terms of the Plan, Awards to those individuals who are eligible to receive Awards under the Plan. Except as limited by law or by the Articles of Incorporation or Bylaws of the Company, and subject to the
provisions herein, the Committee shall have full power, in accordance with the other terms and provisions of the Plan, to: 

  
 -10- 

  (a)      select Employees and
Non-Employee Directors who may receive Awards under the Plan and become Participants; 

 (b)      determine eligibility for participation in the Plan and decide
all questions concerning eligibility for, and the amount of, Awards under the Plan; 

 (c)      determine the sizes and types of Awards; 

 (d)      determine the terms and conditions of Awards, including the
Option Prices of Options and the Grant Prices of SARs; 
  (e)      grant
Awards as an alternative to, or as the form of payment for grants or rights earned or payable under, other bonus or compensation plans, arrangements or policies of the Company or a Subsidiary or Affiliate; 

 (f)      grant Substitute Awards on such terms and conditions as the
Committee may prescribe, subject to compliance with the ISO rules under Code Section 422 and the nonqualified deferred compensation rules under Code Section 409A, where applicable; 

 (g)      make all determinations under the Plan concerning Termination of
any Participant’s employment or service with the Company or a Subsidiary or Affiliate, including whether such Termination occurs by reason of Cause, Disability or Retirement or in connection with a Change of Control and whether a leave
constitutes a Termination; 
  (h)      construe and interpret the Plan
and any agreement or instrument entered into under the Plan, including any Award Agreement; 

 (i)      establish and administer any terms, conditions, restrictions,
limitations, forfeiture, vesting or exercise schedule, and other provisions of or relating to any Award; 

 (j)      establish and administer any performance goals in connection with
any Awards, including related Performance Measures or performance criteria and applicable Performance Periods, determine the extent to which any performance goals and/or other terms and conditions of an Award are attained or are not attained, and
certify whether, and to what extent, any such performance goals and other material terms applicable to Awards intended to qualify as Performance-Based Compensation were in fact satisfied; 

 (k)      construe any ambiguous provisions, correct any defects, supply
any omissions and reconcile any inconsistencies in the Plan and/or any Award Agreement or any other instrument relating to any Awards; 

 (l)      establish, adopt, amend, waive and/or rescind rules, regulations,
procedures, guidelines, forms and/or instruments for the Plan’s operation or administration; 

 (m)    make all valuation determinations relating to Awards and the payment or
settlement thereof; 

  
 -11- 

  (n)      grant waivers of
terms, conditions, restrictions and limitations under the Plan or applicable to any Award, or accelerate the vesting or exercisability of any Award; 

 (o)      subject to the provisions of Article XVI, amend or adjust the
terms and conditions of any outstanding Award and/or adjust the number and/or class of shares of stock subject to any outstanding Award; 

 (p)      at any time and from time to time after the granting of an Award,
specify such additional terms, conditions and restrictions with respect to such Award as may be deemed necessary or appropriate to ensure compliance with any and all applicable laws or rules, including terms, restrictions and conditions for
compliance with applicable securities laws or listing rules, methods of withholding or providing for the payment of required taxes and restrictions regarding a Participant’s ability to exercise Options through a cashless (broker-assisted)
exercise; 
  (q)      offer to buy out an Award previously granted,
based on such terms and conditions as the Committee shall establish with and communicate to the Participant at the time such offer is made; 

 (r)      determine whether, and to what extent and under what
circumstances Awards may be settled in cash, Shares or other property or canceled or suspended; and 

 (s)      exercise all such other authorities, take all such other actions
and make all such other determinations as it deems necessary or advisable for the proper operation and/or administration of the Plan. 

3.4.  Award Agreements.  The Committee shall, subject to applicable laws and rules, determine the
date an Award is granted. Each Award shall be evidenced by an Award Agreement; however, two or more Awards granted to a single Participant may be combined in a single Award Agreement. An Award Agreement shall not be a precondition to the
granting of an Award; provided, however, that (a) the Committee may, but need not, require as a condition to any Award Agreement’s effectiveness, that such Award Agreement be executed on behalf of the Company and/or by the
Participant to whom the Award evidenced thereby shall have been granted (including by electronic signature or other electronic indication of acceptance), and such executed Award Agreement be delivered to the Company, and (b) no person shall
have any rights under any Award unless and until the Participant to whom such Award shall have been granted has complied with the applicable terms and conditions of the Award. The Committee shall prescribe the form of all Award Agreements, and,
subject to the terms and conditions of the Plan, shall determine the content of all Award Agreements. Any Award Agreement may be supplemented or amended in writing from time to time as approved by the Committee; provided that the terms and
conditions of any such Award Agreement as supplemented or amended are not inconsistent with the provisions of the Plan. In the event of any dispute or discrepancy concerning the terms of an Award, the records of the Committee or its designee shall
be determinative. 
 3.5.  Discretionary Authority; Decisions Binding.    The Committee
shall have full discretionary authority in all matters related to the discharge of its responsibilities and the 

  
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exercise of its authority under the Plan. All determinations, decisions, actions and interpretations by the Committee with respect to the Plan and any Award Agreement, and all related orders and
resolutions of the Committee shall be final, conclusive and binding on all Participants, the Company and its shareholders, any Subsidiary or Affiliate and all persons having or claiming to have any right or interest in or under the Plan and/or any
Award Agreement. The Committee shall consider such factors as it deems relevant to making or taking such decisions, determinations, actions and interpretations, including the recommendations or advice of any Director or officer or employee of the
Company, any director, officer or employee of a Subsidiary or Affiliate and such attorneys, consultants and accountants as the Committee may select. A Participant or other holder of an Award may contest a decision or action by the Committee with
respect to such person or Award only on the grounds that such decision or action was arbitrary or capricious or was unlawful, and any review of such decision or action shall be limited to determining whether the Committee’s decision or action
was arbitrary or capricious or was unlawful. 
 3.6.  Attorneys; Consultants.    The
Committee may consult with counsel who may be counsel to the Company. The Committee may, with the approval of the Board, employ such other attorneys and/or consultants, accountants, appraisers, brokers, agents and other persons, any of whom may be
an Employee, as the Committee deems necessary or appropriate. The Committee, the Company and its officers and Directors shall be entitled to rely upon the advice, opinions or valuations of any such persons. The Committee shall not incur any
liability for any action taken in good faith in reliance upon the advice of such counsel or other persons. 

3.7.  Delegation of Administration.  Except to the extent prohibited by applicable law, including
any applicable exemptive rule under Section 16 of the Exchange Act (including Rule 16b-3) or Section 162(m) of the Code, or the applicable rules of a stock exchange, the Committee may, in its discretion,
allocate all or any portion of its responsibilities and powers under this Article III to any one or more of its members and/or delegate all or any part of its responsibilities and powers under this Article III to any person or persons selected by
it; provided, however, that the Committee may not delegate its authority to correct defects, omissions or inconsistencies in the Plan. Any such authority delegated or allocated by the Committee under this Section 3.7 shall be
exercised in accordance with the terms and conditions of the Plan and any rules, regulations or administrative guidelines that may from time to time be established by the Committee, and any such allocation or delegation may be revoked by the
Committee at any time. 
 ARTICLE IV. 

SHARES SUBJECT TO THE PLAN AND ANNUAL AWARD LIMITS 

4.1.  Number of Shares Available for Grants.  The shares of stock subject to Awards granted under
the Plan shall be Shares. Such Shares subject to the Plan may be either authorized and unissued shares (which will not be subject to preemptive rights) or previously issued shares acquired by the Company or any Subsidiary. Subject to adjustment as
provided in Section 4.3, the total number of Shares that may be delivered pursuant to Awards under the Plan shall be sixteen million (16,000,000) Shares. If (a) any Shares are subject to an Option, SAR, or other Award which for any reason
expires or is terminated or canceled without having been fully exercised, or are subject to any Restricted Stock Award (including any Shares subject to a 

  
 -13- 

 
Participant’s Restricted Stock Award that are repurchased by the Company at the Participant’s cost), Restricted Stock Unit Award or other Award granted under the Plan which are
forfeited, or (b) any Award based on Shares is settled for cash, expires or otherwise terminates without the issuance of such Shares, the Shares subject to any such Award shall, to the extent of any such expiration, termination, cancellation,
forfeiture or cash settlement, be available for delivery in connection with future Awards under the Plan; provided, however, that (i) all Shares covered by a SAR, to the extent that it is exercised, and whether or not Shares are
actually issued to the Participant upon exercise of the SAR and (ii) all Shares withheld by the Company to pay the exercise price of an Option and/or the withholding taxes related an Award shall reduce the total number of Shares available for
delivery under the Plan. Any Shares delivered under the Plan upon exercise or satisfaction of Substitute Awards shall not reduce the Shares available for delivery under the Plan;
provided, however, that the total number of Shares that may be delivered pursuant to Incentive Stock Options granted under the Plan shall be the number of Shares set forth in the first sentence of this Section 4.1, as adjusted
pursuant to this Section 4.1, but without application of the foregoing provisions of this sentence. 

4.2.   Annual Award Limits.   The following limits shall apply to grants of all Awards
under the Plan: 
 (a)      Options:   The maximum
aggregate number of Shares that may be subject to Options granted in any one Fiscal Year to any one Participant shall be five hundred thousand (500,000) Shares. 

(b)      SARs:   The maximum aggregate number of Shares
that may be subject to Stock Appreciation Rights granted in any one Fiscal Year to any one Participant shall be five hundred thousand (500,000) Shares. Any Shares covered by Options which include Tandem SARs granted to one Participant in any Fiscal
Year shall reduce this limit on the number of Shares subject to SARs that can be granted to such Participant in such Fiscal Year. 

(c)      Restricted Stock or Restricted Stock Units:   The
maximum aggregate number of Shares that may be subject to Awards of Restricted Stock or Restricted Stock Units granted in any one Fiscal Year to any one Participant shall be two hundred thousand (200,000) Shares. 

(d)      Performance Shares or Performance Units:  The maximum
aggregate grant with respect to Awards of Performance Shares or Performance Units granted in any one Fiscal Year to any one Participant shall be two hundred thousand (200,000) Shares. 

(e)       Other Stock-Based Awards:  The maximum aggregate
grant with respect to Other Stock-Based Awards made in any one Fiscal Year to any one Participant shall be two hundred thousand (200,000) Shares (or cash amounts based on the value of such number of Shares). 

(f)      Director Awards:  The maximum aggregate dollar value of
equity-based (based on the grant date fair value of equity-based) Awards and cash compensation 

  
 -14- 

 
granted under this Plan or otherwise during any one Fiscal Year to any one Participant who is a Non-Employee Director shall not exceed $500,000. 

To the extent required by Section 162(m) of the Code, Shares subject to Options or SARs which are canceled shall continue to be counted
against the limits set forth in paragraphs (a) and (b) immediately preceding. 
 4.3.  Adjustments in
Authorized Shares.   In the event of any corporate event or transaction (including a change in the Shares or the capitalization of the Company), such as a reclassification, recapitalization, merger, consolidation, reorganization
(whether or not such reorganization comes within the definition of such term in Section 368 of the Code), issuance of warrants or rights, dividend or other distribution (whether in the form of cash, stock or other property), stock split or
reverse stock split, spin-off, split-up, combination or exchange of shares, repurchase of shares, or other like change in corporate structure, partial or complete
liquidation of the Company or distribution (other than ordinary cash dividends) to shareholders of the Company, or any similar corporate event or transaction, the Committee, in order to prevent dilution or enlargement of Participants’ rights
under the Plan, shall substitute or adjust, as applicable, the number, class and kind of securities which may be delivered under Section 4.1; the number, class and kind, and/or price (such as the Option Price of Options or the Grant Price of
SARs) of securities subject to outstanding Awards; the Award limits set forth in Section 4.2; and other value determinations applicable to outstanding Awards; provided, however, that the number of Shares subject to any Award shall
always be a whole number. The Committee shall also make appropriate adjustments and modifications in the terms of any outstanding Awards to reflect or related to any such events, adjustments, substitutions or changes, including modifications of
performance goals and changes in the length of Performance Periods, subject to the requirements of Article XI in the case of Awards intended to qualify as Performance-Based Compensation. Any adjustment, substitution or change pursuant to this
Section 4.3 made with respect to an Award intended to be an Incentive Stock Option shall be made only to the extent consistent with such intent, unless the Committee determines otherwise, and any such adjustment that is made with respect to an
Award that provides for Performance-Based Compensation shall be made consistent with the intent that such Award qualify for the performance-based compensation exception under Section 162(m) of the Code. The Committee shall not make any adjustment
pursuant to this Section 4.3 that would cause an Award that is otherwise exempt from Code Section 409A to become subject to Code Section 409A, or that would cause an Award that is subject to Code Section 409A to fail to satisfy the requirements
of Code Section 409A. All determinations of the Committee as to adjustments or changes, if any, under this Section 4.3 shall be conclusive and binding on the Participants. 

4.4.  No Limitation on Corporate Actions.   The existence of the Plan and any Awards granted
hereunder shall not affect in any way the right or power of the Company, any Subsidiary or any Affiliate to make or authorize any adjustment, recapitalization, reorganization or other change in its capital structure or business structure, any merger
or consolidation, any issuance of debt, preferred or prior preference stock ahead of or affecting the Shares, additional shares of capital stock or other securities or subscription rights thereto, any dissolution or liquidation, any sale or transfer
of all or part of its assets or business or any other corporate act or proceeding. Further, except as expressly provided herein or by the Committee, (i) the issuance by the Company of Shares or any class of securities convertible into shares of
stock of any class, for 

  
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cash, property, labor or services, upon direct sale, upon the exercise of rights or warrants to subscribe therefor, or upon conversion of shares or obligations of the Company convertible into
such shares or other securities, (ii) the payment of an ordinary dividend in cash or property other than Shares, or (iii) the occurrence of any similar transaction, and in any case whether or not for fair value, shall not affect, and no
adjustment by reason thereof shall be made with respect to, the number of Shares subject to Awards theretofore granted or the Option Price, Grant Price or purchase price per share applicable to any Award, unless the Committee shall determine, in its
discretion, that an adjustment is necessary or appropriate. 
 ARTICLE V. 

ELIGIBILITY AND PARTICIPATION 

5.1.  Eligibility.   Employees and Non-Employee
Directors shall be eligible to become Participants and receive Awards in accordance with the terms and conditions of the Plan, subject to the limitations on the granting of ISOs set forth in Section 6.9(a), the granting of SARs set forth in
Section 7.1 and the granting of Performance Units and Performance Shares set forth in Section 9.1. 

5.2.  Actual Participation.   Subject to the provisions of the Plan, the Committee may, from
time to time, select Participants from all eligible Employees and Non-Employee Directors and shall determine the nature and amount of each Award. 

ARTICLE VI. 
 STOCK OPTIONS

 6.1.  Grant of Options.   Subject to the terms and provisions of the Plan, Options
may be granted to Participants in such number, and upon such terms, and at any time and from time to time as shall be determined by the Committee. The Committee may grant an Option or provide for the grant of an Option, either from time to time in
the discretion of the Committee or automatically upon the occurrence of specified events, including the achievement of performance goals, the satisfaction of an event or condition within the control of the recipient of the Option or within the
control of others. The granting of an Option shall take place when the Committee by resolution, written consent or other appropriate action determines to grant such Option for a particular number of Shares to a particular Participant at a particular
Option Price. 
 6.2.  Award Agreement.     Each Option grant shall be evidenced
by an Award Agreement that shall specify the Option Price, the maximum duration of the Option, the number of Shares to which the Option pertains, the conditions upon which the Option shall become exercisable and such other provisions as the
Committee shall determine, which are not inconsistent with the terms of the Plan; provided that if an Award Agreement does not contain exercisability criteria, the Option governed by such Award Agreement shall become exercisable in equal
parts on each of the first five (5) anniversaries of the date on which the Option was granted, subject to the other terms and conditions of the Award Agreement and the Plan. The Award Agreement also shall specify whether the Option is intended
to be an ISO or an NQSO. To the extent that any Option does not qualify as an ISO (whether because of its provisions or the time or manner of its exercise or otherwise), such Option, or the portion thereof which does not so qualify, shall constitute
a separate NQSO. 

  
 -16- 

 6.3.  Option Price.   The Option Price for each
Option shall be determined by the Committee and set forth in the Award Agreement; provided that, subject to Section 6.9(c), the Option Price of an Option shall be not less than one hundred percent (100%) of the Fair Market Value of a Share on
the date the Option is granted; provided further, that Substitute Awards or Awards granted in connection with an adjustment provided for in Section 4.3, in the form of stock options, shall have an Option Price per Share that is
intended to maintain the economic value of the Award that was replaced or adjusted, as determined by the Committee. 

6.4.  Duration of Options.   Each Option granted to a Participant shall expire at such time as
the Committee shall determine at the time of grant and set forth in the Award Agreement; provided, however, that no Option shall be exercisable later than the tenth (10th)
anniversary of its date of grant, subject to the respective last sentences of Sections 6.5 and 6.9(c). 

6.5.  Exercise of Options.   Options shall be exercisable at such times and be subject to such
restrictions and conditions as the Committee shall in each instance determine and set forth in the Award Agreement, which need not be the same for each grant or for each Option or Participant. An Agreement may provide that the period of time over
which an Option other than an ISO may be exercised shall be automatically extended if on the scheduled expiration date of such Option the Optionee’s exercise of such Option would violate applicable securities laws; provided,
however, that during such extended exercise period the Option may only be exercised to the extent the Option was exercisable in accordance with its terms immediately prior to such scheduled expiration date; provided further,
however, that such extended exercise period shall end not later than thirty (30) days after the exercise of such Option first would no longer violate such laws. 

6.6.  Payment.   Options shall be exercised by the delivery of a written notice of exercise to
the Company, in a form specified or accepted by the Committee, or by complying with any alternative exercise procedures that may be authorized by the Committee, setting forth the number of Shares with respect to which the Option is to be exercised,
accompanied by full payment for such Shares, which shall include applicable taxes, if any, in accordance with Article XVII. The Option Price upon exercise of any Option shall be payable to the Company in full either: (a) in cash or its
equivalent; (b) subject to such terms, conditions and limitations as the Committee may prescribe, by tendering (either by actual delivery or attestation) unencumbered Shares previously acquired by the Participant exercising such Option having
an aggregate Fair Market Value at the time of exercise equal to the total Option Price, (c) by a combination of (a) and (b); or (d) by any other method approved or accepted by the Committee in its sole discretion, including, if the
Committee so determines, a cashless (broker-assisted) exercise that complies with all applicable laws and/or by the Company withholding of Shares otherwise deliverable upon exercise of such Option. Subject to any governing rules or regulations, as
soon as practicable after receipt of a written notification of exercise and full payment in accordance with the preceding provisions of this Section 6.6, the Company shall deliver to the Participant exercising an Option, in the
Participant’s name, evidence of book entry Shares, or, upon the Participant’s request, Share certificates, in an appropriate amount based upon the number of Shares purchased under the Option, subject to Section 20.10. Unless otherwise
determined by the Committee, all payments under all of the methods described above shall be paid in United States dollars. 

  
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 6.7.  Rights as a Shareholder.   No Participant
or other person shall become the beneficial owner of any Shares subject to an Option, nor have any rights to dividends or other rights of a shareholder with respect to any such Shares, until the Participant has actually received such Shares
following exercise of his or her Option in accordance with the provisions of the Plan and the applicable Award Agreement. 

6.8.  Termination of Employment or Service.   Except as otherwise provided in the Award
Agreement, an Option may be exercised only to the extent that it is then exercisable, and if at all times during the period beginning with the date of granting of such Option and ending on the date of exercise of such Option the Participant is an
Employee or Non-Employee Director, and shall terminate immediately upon a Termination of the Participant. 

Notwithstanding the immediately foregoing paragraph, an Option may only be exercised following Termination as provided below
in this Section 6.8, unless otherwise provided by the Committee or in the Award Agreement: 

  (a)      In the event a Participant ceases to be an Employee because
of Retirement or ceases to be a Non-Employee Director because of voluntary resignation, the Participant shall have the right to exercise his or her Option, to the extent exercisable as of the date of such
Retirement or voluntary resignation, respectively, at any time within one (1) year after Retirement or voluntary resignation, respectively. 

  (b)      In the event a Participant ceases to be an Employee or Non-Employee Director due to Disability, the Option held by the Participant may be exercised, to the extent exercisable as of the date of such Termination, at any time within one (1) year after such
Termination. 
   (c)      In the event a Participant’s
employment with the Company or any Affiliate or Subsidiary or a Participant’s rendering of services as a Non-Employee Director to the Company ceases for reasons other than those described in subsections
(a) or (b) immediately above and not due to Termination for Cause, his or her Option, to the extent exercisable as of the date of such Termination, may be exercised at any time prior to the first
(1st) anniversary of the date of such Termination. 

  (d)      In the event a Participant dies either while an Employee or
Non-Employee Director or after Termination under circumstances described in subsections (a), (b) or (c) immediately above within the applicable time period described therein, any Options held by such
Participant, to the extent such Options would have been exercisable in accordance with the applicable subsection of this Section 6.8 as of the date of the Participant’s death, may be exercised at any time within one (1) year after the
Participant’s death by the Participant’s beneficiary or the executors or administrators of the Participant’s estate or by any person or persons who shall have acquired the Option directly from the Participant by bequest or
inheritance, in accordance herewith. 
 Notwithstanding the foregoing provisions of this Section 6.8 to the contrary, the Committee may
determine in its discretion that an Option may be exercised following any such Termination, whether or not exercisable at the time of such Termination. Subsections (a), (b), (c) and (d) of 

  
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this Section 6.8, and the immediately preceding sentence, shall be subject to the condition that, except as otherwise provided by the Committee, no Option may be exercised after a
Participant’s Termination for Cause or after the expiration date of such Option specified in the applicable Award Agreement. 

6.9.   Limitations on Incentive Stock Options. 

(a)      General.   No ISO shall be granted to any
individual otherwise eligible to participate in the Plan who is not an Employee of the Company or a Subsidiary on the date of granting of such Option. Any ISO granted under the Plan shall contain such terms and conditions, consistent with the Plan,
as the Committee may determine to be necessary to qualify such Option as an “incentive stock option” under Section 422 of the Code. Any ISO granted under the Plan may be modified by the Committee to disqualify such Option from
treatment as an “incentive stock option” under Section 422 of the Code. 

(b)      $100,000 Per Year Limitation.   Notwithstanding
any intent to grant ISOs, an Option granted under the Plan will not be considered an ISO to the extent that it, together with any other “incentive stock options” (within the meaning of Section 422 of the Code, but without regard to
subsection (d) of such Section) under the Plan and any other “incentive stock option” plans of the Company, any Subsidiary and any “parent corporation” of the Company within the meaning of Section 424(e) of the Code,
are exercisable for the first time by any Participant during any calendar year with respect to Shares having an aggregate Fair Market Value in excess of $100,000 (or such other limit as may be required by the Code) as of the time the Option with
respect to such Shares is granted. The rule set forth in the preceding sentence shall be applied by taking Options into account in the order in which they were granted. 

(c)      Options Granted to Certain Shareholders. No ISO shall be granted
to an individual otherwise eligible to participate in the Plan who owns (within the meaning of Section 424(d) of the Code), at the time the Option is granted, more than ten percent (10%) of the total combined voting power of all classes of stock of
the Company or a Subsidiary or any “parent corporation” of the Company within the meaning of Section 424(e) of the Code. This restriction does not apply if at the time such ISO is granted the Option Price of the ISO is at least 110% of the
Fair Market Value of a Share on the date such ISO is granted, and the ISO by its terms is not exercisable after the expiration of five years from such date of grant. 

6.10.            No Repricing.  Notwithstanding
anything in the Plan to the contrary, no Option may be repriced, regranted through cancellation, or otherwise amended to reduce the Option Price applicable thereto (other than with respect to adjustments described in Section 4.3) without the
approval of the Company’s shareholders to the extent required by the listing requirements of any national securities exchange on which the Company’s securities are then actively traded. 

  
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 ARTICLE VII. 

STOCK APPRECIATION RIGHTS 

7.1.  Grant of SARs.   Subject to the terms and conditions of the Plan, SARs may be granted to
Participants other than Non-Employee Directors at any time and from time to time as shall be determined by the Committee. The Committee may grant a SAR (a) in connection and simultaneously with the grant
of an Option (a Tandem SAR) or (b) independent of, and unrelated to, an Option (a Freestanding SAR). The Committee shall have complete discretion in determining the number of Shares to which a SAR pertains (subject to Article IV) and,
consistent with the provisions of the Plan, in determining the terms and conditions pertaining to any SAR. The terms and conditions of SARs shall be consistent with the Plan and set forth in the Award Agreement and need not be uniform among all SARs
or all Participants receiving such SARs. 
 7.2.  Grant Price.   The Grant Price for each
SAR shall be determined by the Committee and set forth in the Award Agreement, subject to the limitations of this Section 7.2. The Grant Price for each Freestanding SAR shall be not less than one hundred percent (100%) of the Fair Market Value
of a Share on the date such Freestanding SAR is granted, except in the case of Substitute Awards or Awards granted in connection with an adjustment provided for in Section 4.3. The Grant Price of a Tandem SAR shall be equal to the Option Price
of the related Option. 
 7.3.  Exercise of Tandem SARs.   Tandem SARs may be exercised for
all or part of the Shares subject to the related Option upon the surrender of the right to exercise the equivalent portion of the related Option. A Tandem SAR shall be exercisable only when and to the extent the related Option is exercisable and may
be exercised only with respect to the Shares for which the related Option is then exercisable. A Tandem SAR shall entitle a Participant to elect, in the manner set forth in the Plan and the applicable Award Agreement, in lieu of exercising his or
her unexercised related Option for all or a portion of the Shares for which such Option is then exercisable pursuant to its terms, to surrender such Option to the Company with respect to any or all of such Shares and to receive from the Company in
exchange therefor a payment described in Section 7.7. An Option with respect to which a Participant has elected to exercise a Tandem SAR shall, to the extent of the Shares covered by such exercise, be canceled automatically and surrendered to
the Company. Such Option shall thereafter remain exercisable according to its terms only with respect to the number of Shares as to which it would otherwise be exercisable, less the number of Shares with respect to which such Tandem SAR has been so
exercised. Notwithstanding any other provision of the Plan to the contrary, with respect to a Tandem SAR granted in connection with an ISO: (a) the Tandem SAR will expire no later than the expiration of the related ISO; (b) the value of
the payment with respect to the Tandem SAR may not exceed the difference between the Fair Market Value of the Shares subject to the related ISO at the time the Tandem SAR is exercised and the Option Price of the related ISO; and (c) the Tandem
SAR may be exercised only when the Fair Market Value of the Shares subject to the ISO exceeds the Option Price of the ISO. 

7.4.  Exercise of Freestanding SARs.   Freestanding SARs may be exercised upon whatever terms
and conditions the Committee, in its sole discretion, in accordance with the Plan, determines and sets forth in the Award Agreement. 

  
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 7.5.   Award Agreement.   Each SAR grant
shall be evidenced by an Award Agreement that shall specify the number of Shares to which the SAR pertains, the Grant Price, the term of the SAR, and such other terms and conditions as the Committee shall determine in accordance with the Plan. 

7.6.   Term of SARs.   The term of a SAR granted under the Plan shall be determined by
the Committee, in its sole discretion; provided, however, that the term of any Tandem SAR shall be the same as the related Option and no SAR shall be exercisable more than ten (10) years after it is granted, subject to the last
sentence of Section 6.5 in the case of a Tandem SAR. 
 7.7.   Payment of SAR
Amount.   An election to exercise SARs shall be deemed to have been made on the date of Notice of such election to the Company. Upon exercise of a SAR, a Participant shall be entitled to receive payment from the Company in an
amount determined by multiplying: 
 (a)      The excess of the Fair Market
Value of a Share on the date of exercise over the Grant Price of the SAR; by 

(b)      The number of Shares with respect to which the SAR is exercised. 

Notwithstanding the foregoing provisions of this Section 7.7 to the contrary, the Committee may establish and set forth in the applicable
Award Agreement a maximum amount per Share that will be payable upon the exercise of a SAR. At the discretion of the Committee, such payment upon exercise of a SAR shall be in cash, in Shares of equivalent Fair Market Value, or in some combination
thereof. 
 7.8.   Rights as a Shareholder.   A Participant receiving a SAR shall have
the rights of a Shareholder only as to Shares, if any, actually issued to such Participant upon satisfaction or achievement of the terms and conditions of the Award, and in accordance with the provisions of the Plan and the applicable Award
Agreement, and not with respect to Shares to which such Award relates but which are not actually issued to such Participant. 

7.9.   Termination of Employment or Service.   Each SAR Award Agreement shall set forth
the extent to which the Participant shall have the right to exercise the SAR following such Participant’s Termination, subject to Section 6.8, as applicable to any Tandem SAR. Such provisions shall be determined in the sole discretion of
the Committee, need not be uniform among all SARs issued pursuant to the Plan, and may reflect distinctions based on the reasons for Termination. 

7.10.           No Repricing.   Notwithstanding
anything in the Plan to the contrary, no SAR may be repriced, regranted through cancellation, or otherwise amended to reduce the Grant Price applicable thereto (other than with respect to adjustments described in Section 4.3) without the
approval of the Company’s shareholders to the extent required by the listing requirements of any national securities exchange on which the Company’s securities are then actively traded. 

  
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 ARTICLE VIII. 

RESTRICTED STOCK AND RESTRICTED STOCK UNITS 

8.1. Awards of Restricted Stock and Restricted Stock Units.  Subject to the terms and provisions of the Plan,
the Committee, at any time and from time to time, may grant Shares of Restricted Stock and/or Restricted Stock Units to Participants in such amounts as the Committee shall determine. Subject to the terms and conditions of this Article VIII and the
Award Agreement, upon delivery of Shares of Restricted Stock to a Participant, or creation of a book entry evidencing a Participant’s ownership of Shares of Restricted Stock, pursuant to Section 8.6, the Participant shall have all of the
rights of a shareholder with respect to such Shares, subject to the terms and restrictions set forth in this Article VIII or the applicable Award Agreement or as determined by the Committee. Restricted Stock Units shall be similar to Restricted
Stock, except no Shares are actually awarded to a Participant who is granted Restricted Stock Units on the date of grant, and such Participant shall have no rights of a shareholder with respect to such Restricted Stock Units. 

8.2. Award Agreement.   Each Restricted Stock and/or Restricted Stock Unit Award shall be evidenced by
an Award Agreement that shall specify the Period of Restriction, the number of Shares of Restricted Stock or the number of Restricted Stock Units granted, and such other provisions as the Committee shall determine in accordance with the Plan. 

8.3. Nontransferability of Restricted Stock.   Except as provided in this Article VIII, Shares of
Restricted Stock may not be sold, transferred, pledged, assigned, encumbered, alienated, hypothecated or otherwise disposed of until the end of the applicable Period of Restriction established by the Committee and specified in the Restricted Stock
Award Agreement. 
 8.4. Period of Restriction and Other Restrictions.   The Period of Restriction
shall lapse based on continuing service as a Non-Employee Director or continuing employment with the Company, a Subsidiary or an Affiliate, the achievement of performance goals, the satisfaction of other
conditions or restrictions or upon the occurrence of other events, in each case, as determined by the Committee, at its discretion, and stated in the Award Agreement. 

8.5. Delivery of Shares, Payment of Restricted Stock Units.   Subject to Section 20.10, after the
last day of the Period of Restriction applicable to a Participant’s Shares of Restricted Stock, and after all conditions and restrictions applicable to such Shares of Restricted Stock have been satisfied or lapse (including satisfaction of any
applicable withholding tax obligations), pursuant to the applicable Award Agreement, such Shares of Restricted Stock shall become freely transferable by such Participant. After the last day of the Period of Restriction applicable to a
Participant’s Restricted Stock Units, and after all conditions and restrictions applicable to Restricted Stock Units have been satisfied or lapse (including satisfaction of any applicable withholding tax obligations), pursuant to the applicable
Award Agreement, such Restricted Stock Units shall be settled by delivery of Shares, a cash payment determined by reference to the then-current Fair Market Value of Shares or a combination of Shares and such cash payment as the Committee, in its
sole discretion, shall determine, either by the terms of the Award Agreement or otherwise. 

  
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 8.6. Forms of Restricted Stock Awards.    Each
Participant who receives an Award of Shares of Restricted Stock shall be issued a stock certificate or certificates evidencing the Shares covered by such Award registered in the name of such Participant, which certificate or certificates may contain
an appropriate legend. The Committee may require a Participant who receives a certificate or certificates evidencing a Restricted Stock Award to immediately deposit such certificate or certificates, together with a stock power or other appropriate
instrument of transfer, endorsed in blank by the Participant, with signatures guaranteed in accordance with the Exchange Act if required by the Committee, with the Secretary of the Company or an escrow holder as provided in the immediately following
sentence. The Secretary of the Company or such escrow holder as the Committee may appoint shall retain physical custody of each certificate representing a Restricted Stock Award until the Period of Restriction and any other restrictions imposed by
the Committee or under the Award Agreement with respect to the Shares evidenced by such certificate expire or shall have been removed. The foregoing to the contrary notwithstanding, the Committee may, in its discretion, provide that a
Participant’s ownership of Shares of Restricted Stock prior to the lapse of the Period of Restriction or any other applicable restrictions shall, in lieu of such certificates, be evidenced by a “book entry” (i.e., a
computerized or manual entry) in the records of the Company or its designated agent in the name of the Participant who has received such Award. Such records of the Company or such agent shall, absent manifest error, be binding on all Participants
who receive Restricted Stock Awards evidenced in such manner. The holding of Shares of Restricted Stock by the Company or such an escrow holder, or the use of book entries to evidence the ownership of Shares of Restricted Stock, in accordance with
this Section 8.6, shall not affect the rights of Participants as owners of the Shares of Restricted Stock awarded to them, nor affect the restrictions applicable to such shares under the Award Agreement or the Plan, including the Period of
Restriction. 
 8.7. Voting Rights.    Unless otherwise determined by the Committee and set forth
in a Participant’s Award Agreement, to the extent permitted or required by law, as determined by the Committee, Participants holding Shares of Restricted Stock may be granted the right to exercise full voting rights with respect to those Shares
during the Period of Restriction. A Participant shall have no voting rights with respect to any Restricted Stock Units. 

8.8. Dividends and Other Distributions.   During the Period of Restriction, Participants holding Shares
of Restricted Stock shall be credited with any cash dividends paid with respect to such Shares while they are so held, unless determined otherwise by the Committee and set forth in the Award Agreement. The Committee may apply any restrictions to
such dividends that the Committee deems appropriate. Except as set forth in the Award Agreement, in the event of (a) any adjustment as provided in Section 4.3, or (b) any shares or securities are received as a dividend, or an
extraordinary dividend is paid in cash, on Shares of Restricted Stock, any new or additional Shares or securities or any extraordinary dividends paid in cash received by a recipient of Restricted Stock shall be subject to the same terms and
conditions, including the Period of Restriction, as relate to the original Shares of Restricted Stock. 
 8.9.
Termination of Employment or Service.   Except as otherwise provided in this Section 8.9, during the Period of Restriction, any Restricted Stock Units and/or Shares of Restricted Stock held by a Participant shall be
forfeited and revert to the Company (or, if Shares of Restricted Sock were sold to the Participant, the Participant shall be required to resell such Shares to the Company at cost) upon the Participant’s Termination or the failure to meet or

  
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satisfy any applicable performance goals or other terms, conditions and restrictions to the extent set forth in the applicable Award Agreement. Each applicable Award Agreement shall set forth the
extent to which, if any, the Participant shall have the right to retain Restricted Stock Units and/or Shares of Restricted Stock following such Participant’s Termination. Such provisions shall be determined in the sole discretion of the
Committee, shall be included in the applicable Award Agreement, need not be uniform among all such Awards issued pursuant to the Plan, and may reflect distinctions based on the reasons for, or circumstances of, such Termination. 

8.10.            Compliance With Code Section
409A.    Unless the Committee provides otherwise in an Award Agreement, each Restricted Stock Unit shall be paid in full to the Participant no later than the fifteenth day of the third month after the end of the first
calendar year in which the Restricted Stock Unit is no longer subject to a “substantial risk of forfeiture” within the meaning of Code Section 409A. If the Committee provides in an Award Agreement that a Restricted Stock Unit is intended
to be subject to Code Section 409A, the Award Agreement shall include terms that are intended to satisfy the requirements of Code Section 409A. 

ARTICLE IX. 
 PERFORMANCE UNITS
AND PERFORMANCE SHARES 
 9.1. Grant of Performance Units and Performance Shares. Subject to the terms of the
Plan, Performance Units and/or Performance Shares may be granted to Participants other than Non-Employee Directors in such amounts and upon such terms, and at any time and from time to time, as shall be
determined by the Committee, in accordance with the Plan. A Performance Unit or Performance Share entitles the Participant who receives such Award to receive Shares or cash upon the attainment of performance goals and/or satisfaction of other terms
and conditions determined by the Committee when the Award is granted and set forth in the Award Agreement. Such entitlements of a Participant with respect to his or her outstanding Performance Unit or Performance Share shall be reflected by a
bookkeeping entry in the records of the Company, unless otherwise provided by the Award Agreement. The terms and conditions of such Awards shall be consistent with the Plan and set forth in the Award Agreement and need not be uniform among all such
Awards or all Participants receiving such Awards. 
 9.2. Value of Performance Units and Performance
Shares.    Each Performance Unit shall have an initial value that is established by the Committee at the time of grant. Each Performance Share shall have an initial value equal to the Fair Market Value of a Share on the date
of grant. The Committee shall set performance goals in its discretion which, depending on the extent to which they are met, will determine the number and/or value of Performance Units and Performance Shares that will be paid out to the Participant.

 9.3. Earning of Performance Units and Performance Shares.   Subject to the terms of the Plan, after
the applicable Performance Period has ended, the holder of Performance Units or Performance Shares shall be entitled to receive payment on the number and value of Performance Units or Performance Shares earned by the Participant over the Performance
Period, to be determined as a function of the extent to which the corresponding performance goals and/or other terms and conditions have been achieved or satisfied. The Committee shall determine the extent to which any such pre-established performance goals and/or other terms and 

  
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conditions of a Performance Unit or Performance Share are attained or not attained following conclusion of the applicable Performance Period. The Committee may, in its discretion, waive any such
performance goals and/or other terms and conditions relating to any such Award not intended to qualify as Performance-Based Compensation. 

9.4. Form and Timing of Payment of Performance Units and Performance Shares. Payment of earned Performance Units and
Performance Shares shall be as determined by the Committee and as set forth in the Award Agreement. Subject to the terms of the Plan, the Committee, in its sole discretion, may pay earned Performance Units and Performance Shares in the form of cash
or in Shares (or in a combination thereof) which have an aggregate Fair Market Value equal to the value of the earned Performance Units or Performance Shares as soon as practicable after the end of the Performance Period and following the
Committee’s determination of actual performance against the performance goals and/or other terms and conditions established by the Committee. Such Shares may be granted subject to any restrictions imposed by the Committee, including pursuant to
Section 20.10. The determination of the Committee with respect to the form of payment of such Awards shall be set forth in the Award Agreement pertaining to the grant of the Award. 

9.5. Rights as a Shareholder.     A Participant receiving a Performance Unit or Performance
Share shall have the rights of a shareholder only as to Shares, if any, actually received by the Participant upon satisfaction or achievement of the terms and conditions of such Award and not with respect to Shares subject to the Award but not
actually issued to such Participant. 
 9.6. Termination of Employment or Service.   Each Award
Agreement shall set forth the extent to which the Participant shall have the right to retain Performance Units and/or Performance Shares following such Participant’s Termination. Such provisions shall be determined in the sole discretion of the
Committee, shall be included in the applicable Award Agreement, need not be uniform among all such Awards issued pursuant to the Plan, and may reflect distinctions based on the reasons for Termination. 

9.7. Compliance With Code Section 409A.   Unless the Committee provides otherwise in an Award
Agreement, each Performance Unit and/or Performance Share that is considered deferred compensation subject to the requirements of Code Section 409A shall be paid in full to the Participant no later than the fifteenth day of the third month after the
end of the first calendar year in which such Award is no longer subject to a “substantial risk of forfeiture” within the meaning of Code Section 409A. If the Committee provides in an Award Agreement that a Performance Share or Performance
Unit is intended to be subject to Code Section 409A, the Award Agreement shall include terms that are intended to satisfy the requirements of Code Section 409A. 

ARTICLE X. 
 OTHER STOCK-BASED
AWARDS 
 10.1.            Other Stock-Based
Awards.   The Committee may grant types of equity-based or equity-related Awards not otherwise described by the terms of the Plan (including the grant or offer for sale of unrestricted Shares), in such amounts (subject to Article
IV) and subject 

  
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to such terms and conditions, as the Committee shall determine. Such Other Stock-Based Awards may involve the transfer of actual Shares to Participants, or payment in cash or otherwise of amounts
based on the value of Shares and may include Awards designed to comply with or take advantage of the applicable local laws of jurisdictions other than the United States. The terms and conditions of such Awards shall be consistent with the Plan and
set forth in the Award Agreement and need not be uniform among all such Awards or all Participants receiving such Awards. 

10.2.            Value of Other Stock-Based
Awards.   Each Other Stock-Based Award shall be expressed in terms of Shares or units based on Shares, as determined by the Committee. The Committee may establish performance goals in its discretion, and any such performance goals
shall be set forth in the applicable Award Agreement. If the Committee exercises its discretion to establish performance goals, the number and/or value of Other Stock-Based Awards that will be paid out to the Participant will depend on the extent to
which such performance goals are met. 

10.3.            Payment of Other Stock-Based
Awards.   Payment, if any, with respect to an Other Stock-Based Award shall be made in accordance with the terms of the Award, as set forth in the Award Agreement, in cash or Shares as the Committee determines. 

10.4.            Termination of Employment or
Service.   The Committee shall determine the extent to which the Participant shall have the right to receive Other Stock-Based Awards following the Participant’s Termination. Such provisions shall be determined in the sole
discretion of the Committee, such provisions may be included in the applicable Award Agreement, but need not be uniform among all Other Stock-Based Awards issued pursuant to the Plan, and may reflect distinctions based on the reasons for
Termination. 
 10.5.            Compliance With Code Section
409A.    Unless the Committee provides otherwise in an Award Agreement, each Other Stock-Based Award that is considered deferred compensation subject to the requirements of Code Section 409A shall be paid in full to the
Participant no later than the fifteenth day of the third month after the end of the first calendar year in which the Other Stock-Based Award is no longer subject to a “substantial risk of forfeiture” within the meaning of Code Section
409A. If the Committee provides in an Award Agreement that an Other Stock-Based Award is intended to be subject to Code Section 409A, the Award Agreement shall include terms that are intended to satisfy the requirements of Code Section 409A. 

ARTICLE XI. 
 PERFORMANCE
MEASURES 
 11.1.            Performance
Measures.  The objective performance goals upon which the granting, payment and/or vesting of Awards to Covered Employees that are intended to qualify as Performance-Based Compensation may occur shall be based on any one or more of the
following Performance Measures selected by the Committee: 

(a)        Earnings per share; 

(b)        Net earnings or net income (before or after taxes); 

  
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 (c)      Net sales or revenue; 

(d)      Net operating profit; 

(e)      Return measures (including return on assets, capital, invested capital,
equity, sales or revenue); 
 (f)      Cash flow (including operating cash
flow, free cash flow, cash flow return on equity and cash flow return on investment); 

(g)      Earnings before or after interest, taxes, depreciation and/or
amortization; 
 (h)      Gross or operating margins; 

(i)       Productivity ratios; 

(j)       Revenue growth; 

(k)      Expenses; 

(l)       Margins; 

(m)     Operating efficiency; 

(n)      Customer satisfaction; 

(o)      Working capital; 

(p)      Market share; 

(q)      Share price (including growth measures, market capitalization, total
shareholder return and return relative to market indices); and 
 (r)       Economic
value added or EVA (net operating profit after tax minus capital multiplied by the cost of capital). 
 Such performance goals shall be
established by the Committee within the time period prescribed by, and shall otherwise comply with the requirements of, Code Section 162(m)(4)(C), or any successor provision thereto, and the regulations thereunder, for performance-based
compensation, and may be set forth in the applicable Award Agreement. Any Performance Measures may be used to measure the performance of the Company, its Affiliates, and/or Subsidiaries as a whole or any business unit of the Company, its Affiliates,
and/or Subsidiaries or any combination thereof, as the Committee may deem appropriate, or any of the above Performance Measures as compared to the performance of a group of comparator companies, or published or special index that the Committee, in
its sole discretion, deems appropriate, or the Company may select Performance Measure (g) above as compared to various stock market indices. 

11.2.          Evaluation of
Performance.   Notwithstanding any other provision of the Plan, payment or vesting of any such Award that is intended to qualify as Performance-Based Compensation shall not be made until the Committee certifies in writing that the
applicable performance goals and any other material terms of such Award were in fact satisfied, except as otherwise provided in Section 11.3. The Committee may provide in any such Award that any evaluation of performance may include or exclude
any of the following events that occurs during a Performance Period: (a) asset write-downs, (b) litigation or claim judgments or settlements, (c) 

  
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the effect of changes in tax laws, accounting principles, or other laws or provisions affecting reported results, (d) any reorganization and restructuring programs, (e) extraordinary,
unusual and/or nonrecurring items of gain or loss, (f) acquisitions or divestitures, and (g) foreign exchange gains and losses. To the extent such inclusions or exclusions affect Awards to Covered Employees, they shall be prescribed in a
form that meets the requirements of Code Section 162(m) for deductibility. 

11.3.          Adjustment of Performance-Based
Compensation.    Notwithstanding any provision of the Plan to the contrary, with respect to any Award that is intended to qualify as Performance-Based Compensation, (a) the Committee may adjust downwards, but not
upwards, any amount payable, or other benefits granted, issued, retained and/or vested pursuant to such an Award on account of satisfaction of the applicable performance goals on the basis of such further considerations as the Committee in its
discretion shall determine, and (b) the Committee may not waive the achievement of the applicable performance goals, except in the case of the Participant’s death or Disability, or a Change of Control. 

11.4.          Committee Discretion.    In the
event that applicable tax and/or securities laws change to permit Committee discretion to alter the governing Performance Measures without obtaining shareholder approval of such changes, the Committee shall have sole discretion to make such changes
without obtaining shareholder approval. In addition, in the event that the Committee determines that it is advisable to grant Awards that shall not qualify as Performance-Based Compensation, the Committee may make such grants without satisfying the
requirements of Code Section 162(m) and base vesting of such Awards on performance measures other than those set forth in Section 11.1 and establish terms and conditions that do not satisfy all of the specific requirements set forth in this
Article XI. 
 ARTICLE XII. 

DIVIDEND EQUIVALENTS 

12.1.          Dividend Equivalents.    Unless
otherwise provided by the Committee, no adjustment shall be made in the Shares issuable or taken into account under Awards on account of cash dividends that may be paid or other rights that may be issued to the holders of Shares prior to issuance of
such Shares under such Award. The Committee may grant Dividend Equivalents based on the dividends declared on Shares that are subject to any Award, including any Award the payment or settlement of which is deferred pursuant to Section 20.6.
Dividend Equivalents may be credited as of the dividend payment dates, during the period between the date the Award is granted and the date the Award becomes payable or terminates or expires. Dividend Equivalents may be subject to any limitations
and/or restrictions determined by the Committee. Dividend Equivalents shall be converted to cash or additional Shares by such formula and at such time, and shall be paid at such times, as may be determined by the Committee. Unless the Award
Agreement provides otherwise, Dividend Equivalents that are considered deferred compensation subject to the requirements of Code Section 409A shall be paid to the Participant at least annually, not later than the fifteenth day of the third month
following the end of the calendar year in which the Dividend Equivalents are credited (or, if later, the fifteenth day of the third month following the end of the calendar year in which the Dividend Equivalents are no longer subject to a substantial
risk of forfeiture within the meaning of Code Section 409A). Any Dividend Equivalents that are accumulated and paid after the date 

  
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specified in the preceding sentence shall be explicitly set forth in a separate arrangement that provides for the payment of the dividend equivalents at a time and in a manner that satisfies the
requirements of Code Section 409A. No Dividend Equivalents shall relate to Shares underlying an Option or SAR unless such Dividend Equivalent rights are explicitly set forth as a separate arrangement and do not cause any such Option or SAR to
be subject to Code Section 409A. 
 ARTICLE XIII. 

TRANSFERABILITY OF AWARDS; BENEFICIARY DESIGNATION 

13.1.          Transferability of Incentive Stock
Options.    No ISO or Tandem SAR granted in connection with an ISO may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution or in
accordance with Section 13.3. Further, all ISOs and Tandem SARs granted in connection with ISOs granted to a Participant shall be exercisable during his or her lifetime only by such Participant. 

13.2.          All Other Awards.  Except as otherwise
provided in Section 8.5 or Section 13.3 or a Participant’s Award Agreement or otherwise determined at any time by the Committee, no Award granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated, other than by will or by the laws of descent and distribution; provided that the Committee may permit further transferability, on a general or a specific basis, and may impose conditions and limitations on any permitted
transferability, subject to Section 13.1 and any applicable Period of Restriction. Further, except as otherwise provided in a Participant’s Award Agreement or otherwise determined at any time by the Committee, or unless the Committee
decides to permit further transferability, subject to Section 13.1 and any applicable Period of Restriction, all Awards granted to a Participant under the Plan, and all rights with respect to such Awards, shall be exercisable or available
during his or her lifetime only by or to such Participant. With respect to those Awards, if any, that are permitted to be transferred to another individual, references in the Plan to exercise or payment related to such Awards by or to the
Participant shall be deemed to include, as determined by the Committee, the Participant’s permitted transferee. In the event any Award is exercised by or otherwise paid to the executors, administrators, heirs or distributees of the estate of a
deceased Participant, or such a Participant’s beneficiary, or the transferee of an Award, in any such case, pursuant to the terms and conditions of the Plan and the applicable Agreement and in accordance with such terms and conditions as may be
specified from time to time by the Committee, the Company shall be under no obligation to issue Shares thereunder unless and until the Company is satisfied, as determined in the discretion of the Committee, that the person or persons exercising such
Award, or to receive such payment, are the duly appointed legal representative of the deceased Participant’s estate or the proper legatees or distributees thereof or the named beneficiary of such Participant, or the valid transferee of such
Award, as applicable. Any purported assignment, transfer or encumbrance of an Award that does not comply with this Section 13.2 shall be void and unenforceable against the Company. 

13.3.          Beneficiary Designation.  Each Participant
may, from time to time, name any beneficiary or beneficiaries who shall be permitted to exercise his or her Option or SAR or to whom any benefit under the Plan is to be paid in case of the Participant’s death before he or she fully exercises
his or her Option or SAR or receives any or all of such benefit. Each such 

  
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designation shall revoke all prior designations by the same Participant, shall be in a form prescribed by the Company, and will be effective only when filed by the Participant in writing with the
Company during the Participant’s lifetime. In the absence of any such beneficiary designation, a Participant’s unexercised Option or SAR, or amounts due but remaining unpaid to such Participant, at the Participant’s death, shall be
exercised or paid as designated by the Participant by will or by the laws of descent and distribution. 
 ARTICLE XIV. 

RIGHTS OF PARTICIPANTS 

14.1.          Rights or Claims.  No individual shall have
any rights or claims under the Plan except in accordance with the provisions of the Plan and any applicable Award Agreement. The grant of an Award under the Plan shall not confer any rights upon the Participant holding such Award other than such
terms, and subject to such conditions, as are specified in the Plan as being applicable to such type of Award, or to all Awards, or as are expressly set forth in the Award Agreement evidencing such Award. Without limiting the generality of the
foregoing, nothing contained in the Plan or in any Award Agreement shall be deemed to: 
  

	 	(a)	 Give any Employee or Non-Employee Director the right to be retained in
the service of the Company, an Affiliate and/or a Subsidiary, whether in any particular position, at any particular rate of compensation, for any particular period of time or otherwise; 

 

	 	(b)	 Restrict in any way the right of the Company, an Affiliate and/or a Subsidiary to terminate, change or modify
any Employee’s employment or any Non-Employee Director’s service as a Director at any time with or without Cause; 

 

	 	(c)	 Give any Employee or Non-Employee Director the right to receive any
bonus, whether payable in cash or in Shares, or in any combination thereof, from the Company, an Affiliate and/or a Subsidiary, nor be construed as limiting in any way the right of the Company, an Affiliate and/or a Subsidiary to determine, in its
sole discretion, whether or not it shall pay any Employee or Non-Employee Director bonuses, and, if so paid, the amount thereof and the manner of such payment; or 

 

	 	(d)	 Give any Participant any rights whatsoever with respect to an Award except as specifically provided in the
Plan and the Award Agreement. 

14.2.          Adoption of the Plan. The adoption of the Plan shall
not be deemed to give any Employee or Non-Employee Director or any other individual any right to be selected as a Participant or to be granted an Award, or, having been so selected, to be selected to receive a
future Award. 
 14.3.          Vesting.  Notwithstanding
any other provision of the Plan, a Participant’s right or entitlement to exercise or otherwise vest in any Award not exercisable or vested at the time of grant shall only result from continued services as a
Non-Employee Director or continued employment with the Company or any Subsidiary or Affiliate, or satisfaction of any other performance goals or other conditions or restrictions applicable, by its terms, to
such Award 

  
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 14.4.          No Effects on
Benefits.  Payments and other compensation received by a Participant under an Award are not part of such Participant’s normal or expected compensation or salary for any purpose, including calculating termination, indemnity,
severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments under any laws, plans, contracts, arrangements or otherwise. No claim or entitlement to compensation or
damages arises from the termination of the Plan or diminution in value of any Award or Shares purchased or otherwise received under the Plan. 

14.5.          One or More Types of Awards.  A particular
type of Award may be granted to a Participant either alone or in addition to other Awards under the Plan. 
 ARTICLE XV. 

CHANGE OF CONTROL 

15.1.          Treatment of Outstanding Awards.  In the
event of a Change of Control, unless otherwise specifically prohibited by any applicable laws, rules or regulations or otherwise provided in any applicable Award Agreement, as in effect prior to the occurrence of the Change of Control, specifically
with respect to a Change of Control: 
 (a)       Immediately prior to
the occurrence of such Change of Control, any and all Options, SARs and Other Stock-Based Awards (if applicable) which are outstanding shall immediately become fully exercisable as to all Shares covered thereby, notwithstanding anything to the
contrary in the Plan or the Award Agreement, and, in the event of a Participant’s Termination (including termination of employment or services with any successor of the Company, a Subsidiary or an Affiliate) under any circumstances during the
one year period following the Change of Control, all Options, SARs and Other Stock-Based Awards (if applicable) held by such Participant (or such Participant’s beneficiary or transferee) shall remain exercisable at least until the first
anniversary of such Termination or the expiration of the term of such Option, SAR or Other Stock-Based Award, if earlier. 

(b)       Immediately prior to the occurrence of such Change of Control,
any restrictions, performance goals or other conditions applicable to Restricted Stock Units, Shares of Restricted Stock and Other Stock-Based Awards previously awarded to Participants shall be immediately canceled or deemed achieved, the Period of
Restriction applicable thereto shall immediately terminate, and all restrictions on transfer, sale, assignment, pledge or other disposition applicable to any such Shares of Restricted Stock shall immediately lapse, notwithstanding anything to the
contrary in the Plan or the Award Agreement. 
 (c)       Immediately
prior to the occurrence of such Change of Control, all Awards which are outstanding shall immediately become fully vested and nonforfeitable. 

(d)       The target payment opportunities attainable under any outstanding
Awards of Performance Units, Performance Shares and other Awards shall be deemed to have been fully earned for the entire Performance Period(s) immediately prior to the effective date of the Change of Control, unless actual performance exceeds the
target, in which 

  
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case actual performance shall be used. There shall be paid out to each Participant holding such an Award denominated in Shares, not later than five (5) days prior to the effective date of
the Change of Control, a pro rata number of Shares (or the equivalent Fair Market Value thereof, as determined by the Committee, in cash) based upon an assumed achievement of all relevant targeted performance goals, unless actual performance
exceeds the target, in which case actual performance shall be used, and upon the length of time within the Performance Period which has elapsed prior to the Change of Control. Awards denominated in cash shall be paid pro rata to applicable
Participants in cash within thirty (30) days following the effective date of the Change of Control, with the pro-ration determined as a function of the length of time within the Performance Period
which has elapsed prior to the Change of Control, and based on an assumed achievement of all relevant targeted performance goals, unless actual performance exceeds the target, in which case actual performance shall be used. 

(e)       Subject to Section 15.4, any Award the payment or settlement
of which was deferred under Section 20.6 or otherwise shall be paid or distributed immediately prior to the Change of Control, except as otherwise provided by the Committee in accordance with Section 15.1(f). 

(f)        In its discretion, and on such terms and conditions as it
deems appropriate, the Committee may provide, either by the terms of the Award Agreement applicable to any Award or by resolution adopted prior to the occurrence of the Change of Control, that any outstanding Award shall be adjusted by substituting
for each Share subject to such Award immediately prior to the transaction resulting in the Change of Control the consideration (whether stock or other securities of the surviving corporation or any successor corporation to the Company, or a parent
or subsidiary thereof, or that may be issuable by another corporation that is a party to the transaction resulting in the Change of Control) received in such transaction by holders of Shares for each Share held on the closing or effective date of
such transaction, in which event the aggregate Option Price or Grant Price, as applicable, of the Award shall remain the same; provided, however, that if such consideration received in such transaction is not solely stock of a
successor, surviving or other corporation, the Committee may provide for the consideration to be received upon exercise or payment of an Award, for each Share subject to such Award, to be solely stock or other securities of the successor, surviving
or other corporation, as applicable, equal in fair market value, as determined by the Committee, to the per-Share consideration received by holders of Shares in such transaction. 

(g)       In its discretion, and on such terms and conditions as it deems
appropriate, the Committee may provide, either by the terms of the Award Agreement applicable to any Award or by resolution adopted prior to the occurrence of the Change of Control, that any outstanding Award (or portion thereof) shall be converted
into a right to receive cash, on or as soon as practicable following the closing date or expiration date of the transaction resulting in the Change of Control in an amount equal to the highest value of the consideration to be received in connection
with such transaction for one Share, or, if higher, the highest Fair Market Value of a Share during the thirty (30) consecutive business days immediately prior to the closing date or expiration date of such transaction, less the per-Share Option Price, Grant Price or outstanding unpaid purchase price, as 

  
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applicable to the Award, multiplied by the number of Shares subject to such Award, or the applicable portion thereof. 

(h)       The Committee may, in its discretion, provide that an Award can
or cannot be exercised after, or will otherwise terminate or not terminate as of, a Change of Control. 

15.2.          No Implied Rights; Other Limitations.  No
Participant shall have any right to prevent the consummation of any of the acts described in Section 4.3 or 15.1 affecting the number of Shares available to, or other entitlement of, such Participant under the Plan or such Participant’s
Award. Any actions or determinations of the Committee under this Article XV need not be uniform as to all outstanding Awards, nor treat all Participants identically. Notwithstanding the adjustments described in Section 15.1, in no event may any
Option or SAR be exercised after ten (10) years from the date it was originally granted, and any changes to ISOs pursuant to this Article XV shall, unless the Committee determines otherwise, only be effective to the extent such adjustments or
changes do not cause a “modification” (within the meaning of Section 424(h)(3) of the Code) of such ISOs or adversely affect the tax status of such ISOs. 

15.3.          Termination, Amendment, and Modifications of Change of
Control   Provisions.  Notwithstanding any other provision of the Plan (but subject to the limitations of Section 15.1(g), the last sentence of Section 16.1 and Section 16.2) or any Award Agreement provision,
the provisions of this Article XV may not be terminated, amended, or modified on or after the date of a Change of Control to materially impair any Participant’s Award theretofore granted and then outstanding under the Plan without the prior
written consent of such Participant. 
 15.4.          Compliance with
Code Section 409A.    Notwithstanding any other provisions of the Plan or any Award Agreement to the contrary, if a Change of Control that is not a Qualified Change of Control occurs, and payment or distribution of an Award
constituting deferred compensation subject to Code Section 409A would otherwise be made or commence on the date of such Change of Control (pursuant to the Plan, the Award Agreement or otherwise), (a) the vesting of such Award shall accelerate in
accordance with the Plan and the Award Agreement, (b) such payment or distribution shall not be made or commence prior to the earliest date on which Code Section 409A permits such payment or distribution to be made or commence without
additional taxes or penalties under Code Section 409A, and (c) in the event any such payment or distribution is deferred in accordance with the immediately preceding clause (b), such payment or distribution that would have been made prior to
the deferred payment or commencement date, but for Code Section 409A, shall be paid or distributed on such earliest payment or commencement date, together, if determined by the Committee, with interest at the rate established by the Committee. The
Committee shall not extend the period to exercise an Option or Stock Appreciation Right to the extent that such extension would cause the Option or Stock Appreciation Right to become subject to Code Section 409A. Additionally, the Committee shall
not take any action pursuant to this Article XV that would cause an Award that is otherwise exempt from Code Section 409A to become subject to Code Section 409A, or that would cause an Award that is subject to Code Section 409A to fail to satisfy
the requirements of Code Section 409A. 

  
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 ARTICLE XVI. 

AMENDMENT, MODIFICATION, AND TERMINATION 

16.1.          Amendment, Modification, and Termination. The
Board may, at any time and with or without prior notice, amend, alter, suspend, or terminate the Plan, and the Committee may, to the extent permitted by the Plan, amend the terms of any Award theretofore granted, including any Award Agreement, in
each case, retroactively or prospectively; provided, however, that no such amendment, alteration, suspension, or termination of the Plan shall be made which, without first obtaining approval of the shareholders of the Company (where
such approval is necessary to satisfy (i) the then-applicable requirements of Rule 16b-3, (ii) any requirements under the Code relating to ISOs or for exemption from Section 162(m) of the Code, or
(iii) any applicable law, regulation or rule (including the applicable regulations and rules of the SEC and any national securities exchange)), would: 

(a)       except as is provided in Section 4.3, increase the maximum
number of Shares which may be sold or awarded under the Plan or increase the maximum limitations set forth in Section 4.2; 

(b)       except as is provided in Section 4.3, decrease the minimum
Option Price or Grant Price requirements of Sections 6.3 and 7.2, respectively; 

(c)       change the class of persons eligible to receive Awards under the
Plan; 
 (d)       change the Performance Measures set forth in
Section 11.1; 
 (e)       extend the duration of the Plan or the
period during which Options or SARs may be exercised under Section 6.4 or 7.6, as applicable; or 

(f)        otherwise require shareholder approval to comply with any
applicable law, regulation or rule (including the applicable regulations and rules of the SEC and any national securities exchange). 
 In
addition, (A) no such amendment, alteration, suspension or termination of the Plan or any Award theretofore granted, including any Award Agreement, shall be made which would materially impair the previously accrued rights of a Participant under
any outstanding Award without the written consent of such Participant, provided, however, that the Board may amend or alter the Plan and the Committee may amend or alter any Award, including any Agreement, either retroactively or
prospectively, without the consent of the applicable Participant, (x) so as to preserve or come within any exemptions from liability under Section 16(b) of the Exchange Act, pursuant to the rules and releases promulgated by the SEC (including
Rule 16b-3), and/or so that any Award that is intended to qualify as Performance-Based Compensation shall qualify for the performance-based compensation exception under Code Section 162(m) (or any successor
provision), or (y) if the Board or the Committee determines in its discretion that such amendment or alteration either (I) is required or advisable for the Company, the Plan or the Award to satisfy, comply with or meet the requirements of
any law, regulation, rule or accounting standard or (II) is not reasonably likely to significantly diminish the benefits provided under such Award, or that such diminishment has been or will be adequately compensated, and (B) except as is
provided in Section 4.3, but notwithstanding any other provisions of the Plan, neither the Board nor the 

  
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Committee may take any action (1) to amend the terms of an outstanding Option or SAR to reduce the Option Price or Grant Price thereof, cancel an Option or SAR and replace it with a new
Option or SAR with a lower Option Price or Grant Price, or that has an economic effect that is the same as any such reduction or cancellation; or (2) to cancel an outstanding Option or SAR having an Option Price or Grant Price above the
then-current Fair Market Value of the Shares in exchange for the grant of another type of Award, without, in each such case, first obtaining approval of the shareholders of the Company of such action. 

16.2.    Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring
Events.  The Board or the Committee may make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events (including the events described in Section 4.3)
affecting the Company or the financial statements of the Company or of changes in applicable laws, regulations, or accounting principles, whenever the Committee determines that such adjustments are appropriate in order to prevent unintended dilution
or enlargement of the benefits or potential benefits intended to be made available under the Plan. Any such adjustment with respect to an Award intended to be an ISO shall be made only to the extent consistent with such intent, unless the Board or
the Committee determines otherwise, and any such adjustment that is made with respect to an Award that is intended to qualify as Performance-Based Compensation shall be made consistent with the intent that such Award qualify for the
performance-based compensation exception under Code Section 162(m) (or any successor provision). Additionally, neither the Board nor the Committee shall not make any adjustment pursuant to this Article XVI that would cause an Award that is otherwise
exempt from Code Section 409A to become subject to Code Section 409A, or that would cause an Award that is subject to Code Section 409A to fail to satisfy the requirements of Code Section 409A. The determination of the Committee as to the foregoing
adjustments, if any, shall be conclusive and binding on Participants under the Plan. 
 ARTICLE XVII. 

TAX WITHHOLDING AND OTHER TAX MATTERS 

17.1.          Tax Withholding.   The Company and/or
any Subsidiary or Affiliate are authorized to withhold from any Award granted or payment due under the Plan the amount of all Federal, state, local and non-United States taxes due in respect of such Award or
payment and take any such other action as may be necessary or appropriate, as determined by the Committee, to satisfy all obligations for the payment of such taxes. The recipient of any payment or distribution under the Plan shall make arrangements
satisfactory to the Company, as determined in the Committee’s discretion, for the satisfaction of any tax obligations that arise by reason of any such payment or distribution. The Company shall not be required to make any payment or
distribution under or relating to the Plan or any Award until such obligations are satisfied or such arrangements are made, as determined by the Committee in its discretion. 

17.2.          Withholding or Tendering
Shares.   Without limiting the generality of Section 17.1, the Committee may in its discretion permit a Participant to satisfy or arrange to satisfy, in whole or in part, the tax obligations incident to an Award by:
(a) electing to have the Company withhold Shares or other property otherwise deliverable to such Participant pursuant to his or her Award and/or (b) tendering to the Company Shares owned by such Participant (or by such Participant and his
or her spouse jointly) and purchased or held for the requisite period of time as may be required to avoid the Company’s or the Affiliates’ or Subsidiaries’ incurring an 

  
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adverse accounting charge, based, in each case, on the Fair Market Value of the Shares on the payment date as determined by the Committee. All such elections shall be irrevocable, made in
writing, signed by the Participant, and shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate. For avoidance of doubt, the amount of any Shares so withheld under (a) may exceed the
amount necessary to satisfy the minimum required Federal, state, local and non-United States withholding obligations. 

17.3.          Restrictions.  The satisfaction of tax
obligations pursuant to this Article XVII shall be subject to such restrictions as the Committee may impose, including any restrictions required by applicable law or the rules and regulations of the SEC, and shall be construed consistent with an
intent to comply with any such applicable laws, rule and regulations. 

17.4.          Special ISO Obligations.  The Committee may
require a Participant to give prompt written notice to the Company concerning any disposition of Shares received upon the exercise of an ISO within: (i) two (2) years from the date of granting such ISO to such Participant or (ii) one (1)
year from the transfer of such Shares to such Participant or (iii) such other period as the Committee may from time to time determine. The Committee may direct that a Participant with respect to an ISO undertake in the applicable Award
Agreement to give such written notice described in the preceding sentence, at such time and containing such information as the Committee may prescribe, and/or that the certificates evidencing Shares acquired by exercise of an ISO refer to such
requirement to give such notice.  
 17.5.          Section
83(b) Election.  If a Participant makes an election under Section 83(b) of the Code to be taxed with respect to an Award as of the date of transfer of Shares rather than as of the date or dates upon which the Participant would
otherwise be taxable under Section 83(a) of the Code, such Participant shall deliver a copy of such election to the Company immediately after filing such election with the Internal Revenue Service. Neither the Company nor any Subsidiary or Affiliate
shall have any liability or responsibility relating to or arising out of the filing or not filing of any such election or any defects in its construction. 

17.6.          No Guarantee of Favorable Tax
Treatment.  Although the Company intends to administer the Plan so that Awards will be exempt from, or will comply with, the requirements of Code Section 409A, the Company does not warrant that any Award under the Plan will qualify for
favorable tax treatment under Code Section 409A or any other provision of federal, state, local, or non-United States law. The Company shall not be liable to any Participant for any tax, interest, or penalties
the Participant might owe as a result of the grant, holding, vesting, exercise, or payment of any Award under the Plan. 

  
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 ARTICLE XVIII. 

LIMITS OF LIABILITY; INDEMNIFICATION 

18.1.          Limits of Liability. 

(a)       Any liability of the Company or a Subsidiary or Affiliate to any
Participant with respect to any Award shall be based solely upon contractual obligations created by the Plan and the Award Agreement. 

(b)       None of the Company, any Subsidiary, any Affiliate, any member of
the Board or the Committee or any other person participating in any determination of any question under the Plan, or in the interpretation, administration or application of the Plan, shall have any liability, in the absence of bad faith, to any
party for any action taken or not taken in connection with the Plan, except as may expressly be provided by statute. 

(c)       Each member of the Committee, while serving as such, shall be
considered to be acting in his or her capacity as a director of the Company. Members of the Board of Directors and members of the Committee acting under the Plan shall be fully protected in relying in good faith upon the advice of counsel and shall
incur no liability except for gross negligence or willful misconduct in the performance of their duties. 

(d)       The Company shall not be liable to a Participant or any other
person as to: (i) the non-issuance of Shares as to which the Company has been unable to obtain from any regulatory body having relevant jurisdiction the authority deemed by the Committee or the
Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, and (ii) any tax consequence expected, but not realized, by any Participant or other person due to the receipt, exercise or settlement of any Option
or other Award. 
 18.2.          Indemnification. Subject to the
requirements of Delaware law, each individual who is or shall have been a member of the Committee or of the Board, or an officer of the Company to whom authority was delegated in accordance with Article III, shall be indemnified and held harmless by
the Company against and from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in
which he or she may be involved by reason of any action taken or failure to act under the Plan and against and from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction
of any judgment in any such action, suit, or proceeding against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his
or her own behalf, unless such loss, cost, liability, or expense is a result of the individual’s own willful misconduct or except as provided by statute. The foregoing right of indemnification shall not be exclusive of any other rights of
indemnification to which such individual may be entitled under the Company’s Articles of Incorporation or Bylaws, as a matter of law, or otherwise, or any power that the Company may have to indemnify or hold harmless such individual. 

  
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 ARTICLE XIX. 

SUCCESSORS 

19.1.            General.   All obligations
of the Company under the Plan with respect to Awards granted hereunder shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of
all or substantially all of the business and/or assets of the Company. 
 ARTICLE XX. 

MISCELLANEOUS 

20.1.            Drafting Context.   Except
where otherwise indicated by the context, any masculine term used herein also shall include the feminine; the plural shall include the singular and the singular shall include the plural. The words “Article,” “Section,” and
“paragraph” herein shall refer to provisions of the Plan, unless expressly indicated otherwise. The words “include,” “includes,” and “including” herein shall be deemed to be followed by “without
limitation” whether or not they are in fact followed by such words or words of similar import, unless the context otherwise requires. 

20.2.            Forfeiture Events. 

 (a)         Notwithstanding any provision of the Plan to
the contrary, the Committee shall have the authority to determine (and may so provide in any Agreement) that a Participant’s (including his or her estate’s, beneficiary’s or transferee’s) rights (including the right to exercise
any Option or SAR), payments and benefits with respect to any Award shall be subject to reduction, cancellation, forfeiture or recoupment in the event of the Participant’s Termination for Cause or due to voluntary resignation; serious
misconduct; violation of the Company’s or a Subsidiary’s or Affiliate’s policies; breach of fiduciary duty; unauthorized disclosure of any trade secret or confidential information of the Company or a Subsidiary or Affiliate; breach of
applicable noncompetition, nonsolicitation, confidentiality or other restrictive covenants; or other conduct or activity that is in competition with the business of the Company or any Subsidiary or Affiliate, or otherwise detrimental to the
business, reputation or interests of the Company and/or any Subsidiary or Affiliate; or upon the occurrence of certain events specified in the applicable Award Agreement (in any such case, whether or not the Participant is then an Employee or Non-Employee Director). The determination of whether a Participant’s conduct, activities or circumstances are described in the immediately preceding sentence shall be made by the Committee in its good faith
discretion, and pending any such determination, the Committee shall have the authority to suspend the exercise, payment, delivery or settlement of all or any portion of such Participant’s outstanding Awards pending an investigation of the
matter. 
  (b)         If the Company is required to
prepare an accounting restatement due to the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement under the securities laws, if the Participant knowingly or grossly negligently engaged in the
misconduct, or knowingly or grossly negligently failed to prevent the misconduct, or if the Participant is one of the individuals subject to automatic 

  
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forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002, the Participant shall reimburse the Company the amount of any payment in settlement of an Award earned or accrued during the
twelve- (12-) month period following the first public issuance or filing with the SEC (whichever just occurred) of the financial document embodying such financial reporting requirement. 

20.3.            Severability.  In the event any provision of the
Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 

20.4.            Transfer, Leave of Absence.  For
purposes of the Plan, a transfer of an Employee from the Company to an Affiliate or Subsidiary (or, for purposes of any ISO granted under the Plan, only a Subsidiary), or vice versa, or from one Affiliate or Subsidiary to another (or in the case of
an ISO, only from one Subsidiary to another), and a leave of absence, duly authorized in writing by the Company or a Subsidiary or Affiliate, shall not be deemed a Termination of the Employee for purposes of the Plan or with respect to any Award (in
the case of ISOs, to the extent permitted by the Code). The Committee shall have the discretion to determine the effects upon any Award, upon an individual’s status as an Employee or Non-Employee Director
for purposes of the Plan (including whether a Participant shall be deemed to have experienced a Termination or other change in status) and upon the exercisability, vesting, termination or expiration of any Award in the case of: (a) any
Participant who is employed by an entity that ceases to be an Affiliate or Subsidiary (whether due to a spin-off or otherwise), (b) any transfer of a Participant between locations of employment with the
Company, an Affiliate, and/or Subsidiary or between the Company, an Affiliate or Subsidiary or between Affiliates or Subsidiaries, (c) any leave of absence of a Participant, (d) any change in a Participant’s status from an Employee to
a Non-Employee Director, or vice versa; and (e) upon approval by the Committee, any Employee who experiences a Termination but becomes employed by a partnership, joint venture, corporation or other entity
not meeting the requirements of an Affiliate or Subsidiary, subject, in each case, to the requirements of Code Section 422 applicable to any ISOs and Code Section 409A applicable to any Options and SARs. 

20.5.            Exercise and Payment of
Awards.  An Award shall be deemed exercised or claimed when the Secretary of the Company or any other Company official or other person designated by the Committee for such purpose receives appropriate written notice from a Participant,
in form acceptable to the Committee, together with payment of the applicable Option Price, Grant Price or other purchase price, if any, and compliance with Article XVII, in accordance with the Plan and such Participant’s Award Agreement.

20.6.            Deferrals.     
 To the extent provided in the Award Agreement, the Committee may permit or require a Participant to defer such Participant’s receipt of the payment of cash or the delivery of Shares that would otherwise be due to such Participant by virtue
of the lapse or waiver of the Period of Restriction or other restrictions with respect to Restricted Stock or the payment or satisfaction of Restricted Stock Units, Performance Units, Performance Shares, or Other Stock-Based Awards. If any such
deferral election is required or permitted, (a) such deferral shall represent an unfunded and unsecured obligation of the Company and shall not confer the rights of a shareholder unless and until Shares are issued thereunder; (b) the
number of 

  
 -39- 

 
Shares subject to such deferral shall, until settlement thereof, be subject to adjustment pursuant to Section 4.3; and (c) the Committee shall establish rules and procedures for such
deferrals and payment or settlement thereof, which may be in cash, Shares or any combination thereof, and such deferrals may be governed by the terms and conditions of any deferred compensation plan of the Company or Affiliate specified by the
Committee for such purpose. Notwithstanding any provisions of the Plan to the contrary, in no event shall any deferral under this Section 20.6 be permitted if the Committee determines that such deferral would result in the imposition of
additional tax under Code Section 409A. 

20.7.            Loans.  The Company may, in the
discretion of the Committee, extend one or more loans to Participants in connection with the exercise or receipt of an Award granted to any such Participant; provided, however, that the Company shall not extend loans to any Participant
if prohibited by law or the rules of any stock exchange or quotation system on which the Company’s securities are listed. The terms and conditions of any such loan shall be established by the Committee. 

20.8.            No Effect on Other
Plans.   Neither the adoption of the Plan nor anything contained herein shall affect any other compensation or incentive plans or arrangements of the Company or any Subsidiary or Affiliate, or prevent or limit the right of the
Company or any Subsidiary or Affiliate to establish any other forms of incentives or compensation for their directors, officers or eligible employees or grant or assume options or other rights otherwise than under the Plan. 

20.9.            Section 16 of Exchange Act and Code Section
162(m).  Unless otherwise stated in the Award Agreement, notwithstanding any other provision of the Plan, any Award granted to an Insider shall be subject to any additional limitations set forth in any applicable exemptive rule under
Section 16 of the Exchange Act (including Rule 16b-3) that are requirements for the application of such exemptive rule, and the Plan and the Award Agreement shall be deemed amended to the extent necessary
to conform to such limitations. Furthermore, notwithstanding any other provision of the Plan or an Award Agreement, any Award to a Covered Employee that is intended to qualify as Performance-Based Compensation shall be subject to any applicable
limitations set forth in Code Section 162(m) or any regulations or rulings issued thereunder (including any amendment to the foregoing) that are requirements for qualification as “other performance-based compensation” as described in Code
Section 162(m)(4)(C), and the Plan and the Award Agreement shall be deemed amended to the extent necessary to conform to such requirements and no action of the Committee that would cause such Award not to so qualify shall be effective. 

20.10.          Requirements of Law; Limitations on Awards. 

  (a)        The granting of Awards and the issuance of
Shares under the Plan shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 

  (b)        If at any time the Committee shall determine,
in its discretion, that the listing, registration and/or qualification of Shares upon any securities exchange or under any state, Federal or non-United States law, or the consent or approval of any

  
 -40- 

 
governmental regulatory body, is necessary or desirable as a condition of, or in connection with, the sale or purchase of Shares hereunder, the Company shall have no obligation to allow the
grant, exercise or payment of any Award, or to issue or deliver evidence of title for Shares issued under the Plan, in whole or in part, unless and until such listing, registration, qualification, consent and/or approval shall have been effected or
obtained, or otherwise provided for, free of any conditions not acceptable to the Committee. 

  (c)        If at any time counsel to the Company shall be
of the opinion that any sale or delivery of Shares pursuant to an Award is or may be in the circumstances unlawful or result in the imposition of excise taxes on the Company or any Subsidiary or Affiliate under the statutes, rules or regulations of
any applicable jurisdiction, the Company shall have no obligation to make such sale or delivery, or to make any application or to effect or to maintain any qualification or registration under the Securities Act, or otherwise with respect to Shares
or Awards and the right to exercise or payment of any Option or Award shall be suspended until, in the opinion of such counsel, such sale or delivery shall be lawful or will not result in the imposition of excise taxes on the Company or any
Subsidiary or Affiliate. 
   (d)        Upon termination
of any period of suspension under this Section 20.10, any Award affected by such suspension which shall not then have expired or terminated shall be reinstated as to all Shares available before such suspension and as to the Shares which would
otherwise have become available during the period of such suspension, but no suspension shall extend the term of any Award. 

  (e)        The Committee may require each person receiving
Shares in connection with any Award under the Plan to represent and agree with the Company in writing that such person is acquiring such Shares for investment without a view to the distribution thereof, and/or provide such other representations and
agreements as the Committee may prescribe. The Committee, in its absolute discretion, may impose such restrictions on the ownership and transferability of the Shares purchasable or otherwise receivable by any person under any Award as it deems
appropriate. Any such restrictions shall be set forth in the applicable Award Agreement, and the certificates evidencing such shares may include any legend that the Committee deems appropriate to reflect any such restrictions. 

  (f)        An Award and any Shares received upon the
exercise or payment of an Award shall be subject to such other transfer and/or ownership restrictions and/or legending requirements as the Committee may establish in its discretion and may be referred to on the certificates evidencing such Shares,
including restrictions under applicable Federal securities laws, under the requirements of any stock exchange or market upon which such Shares are then listed and/or traded, and under any blue sky or state securities laws applicable to such Shares.

 20.11.          Participants Deemed to Accept
Plan.  By accepting any benefit under the Plan, each Participant and each person claiming under or through any such Participant shall be conclusively deemed to have indicated their acceptance and ratification of, and consent to, all of

  
 -41- 

 
the terms and conditions of the Plan and any action taken under the Plan by the Board, the Committee or the Company, in any case in accordance with the terms and conditions of the Plan. 

20.12.          Governing Law.      The
Plan and all Award Agreements and other agreements hereunder shall be construed in accordance with and governed by the laws of the state of Delaware, without giving effect to the choice of law principles thereof, except to the extent superseded by
applicable United States federal law. Unless otherwise provided in the Agreement, Participants are deemed to submit to the exclusive jurisdiction and venue of the federal or state courts of Delaware, to resolve any and all issues that may arise out
of or relate to the Plan or any related Award Agreement. 

20.13.          Plan Unfunded.    The Plan shall
be unfunded. The Company shall not be required to establish any special or separate fund or to make any other segregation of assets to assure the issuance of Shares or the payment of cash upon exercise or payment of any Award. Proceeds from the sale
of Shares pursuant to Options or other Awards granted under the Plan shall constitute general funds of the Company. 

20.14.          Administration Costs.    The
Company shall bear all costs and expenses incurred in administering the Plan, including expenses of issuing Shares pursuant to any Options or other Awards granted hereunder. 

20.15.          Uncertificated Shares. To the extent that the Plan
provides for issuance of certificates to reflect the transfer of Shares, the transfer of such Shares may nevertheless be effected on a noncertificated basis, to the extent not prohibited by applicable law or the rules of any stock exchange. 

20.16.          No Fractional Shares. An Option or other Award shall
not be exercisable with respect to a fractional Share or the lesser of fifty (50) shares or the full number of Shares then subject to the Option or other Award. No fractional Shares shall be issued upon the exercise or payment of an Option or
other Award. 
 20.17.          Deferred Compensation. If any Award
would be considered deferred compensation as defined under Code Section 409A and would fail to meet the requirements of Code Section 409A, then such Award shall be null and void; provided, however, that the Committee may permit
deferrals of compensation pursuant to the terms of a Participant’s Award Agreement, a separate plan, or a subplan which (in each case) meets the requirements of Code Section 409A. Additionally, to the extent any Award is subject to Code Section
409A, notwithstanding any provision herein to the contrary, the Plan does not permit the acceleration of the time or schedule of any distribution related to such Award, except as permitted by Code Section 409A. 

20.18.          Employees Based Outside of the United
States.    Notwithstanding any provision of the Plan to the contrary, in order to comply with the laws or practices of countries other than the United States in which the Company, any Affiliate, and/or any Subsidiary operates
or has Employees or Non-Employee Directors, the Committee, in its sole discretion, shall have the power and authority to: 
  

	 	(a)	Determine which Affiliates and Subsidiaries shall be covered by the Plan; 

  
 -42- 

	 	(b)	 Determine which Employees and/or Non-Employee Directors outside the
United States are eligible to participate in the Plan; 

  

	 	(c)	 Grant Awards (including substitutes for Awards), and modify the terms and conditions of any Awards, on such
terms and conditions as the Committee determines necessary or appropriate to permit participation in the Plan by individuals otherwise eligible to so participate who are non-United States nationals or employed
outside the United States, or otherwise to comply with applicable non-United States laws or conform to applicable requirements or practices of jurisdictions outside the United States; 

 

	 	(d)	 Establish subplans and adopt or modify exercise procedures and other terms and procedures, to the extent such
actions may be necessary or advisable. Any subplans and modifications to Plan terms and procedures established under this Section 20.18 by the Committee shall be attached to the Plan as appendices; and 

 

	 	(e)	 Take any action, before or after an Award is made, that the Committee, in its discretion, deems advisable to
obtain approval or comply with any necessary local government regulatory exemptions or approvals. 

Notwithstanding the above, the Committee may not take any actions hereunder, and no Awards shall be granted, that would
violate any applicable law. 

*                       
     *                            * 

  
 -43-Exhibit

CANCER GENETICS, INC.

EMPLOYMENT AGREEMENT

This Employment Agreement (this "Agreement") is entered into as of the date of the last signature hereto ("Effective Date"), by and between Cancer Genetics, Inc., a Delaware corporation with its corporate headquarters at 201 Route 17 North, 2nd Floor, Rutherford, NJ 07070 (the "Company"), and Dr. Rita Shaknovich, ("Employee").

In consideration of the mutual covenants and conditions set forth herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows:

		
	1.
	Employment.    The Company hereby employs Employee in the capacity of the Chief Medical Officer (“CMO”) and Chair of the Clinical Advisory Board of the Company, reporting directly to the President and Chief Executive Officer of the Company (the "CEO"). Employee accepts such employment and agrees to perform such roles and provide such management and other services for the Company as are customary to such office and such additional responsibilities, consistent with the position as the Company's Chief Medical Officer and Chair of the Clinical Advisory Board, as may be assigned from time to time by the CEO.  Medical directors, both employees and consultants, will report to Employee and Employee will share the responsibility of managing the activity, workflow and quality of the clinical laboratory directors and their teams, and will be responsible for designing and implementing a plan for strategic unified clinical laboratory oversight and portfolio development. 

		
	2.
	Term.    The employment hereunder shall be for a period commencing on May 28,  2017 (the "Commencement Date") and ending on the two (2)-year anniversary of the Commencement Date (the "Initial Term"), unless earlier terminated as provided in Section 4 or 5. This Agreement shall be automatically renewed for successive one (1)-year periods thereafter, commencing upon the expiration of the Initial Term, unless earlier terminated as provided in Section 4 or 5. Employee's employment following the Commencement Date will be on a full-time business basis requiring the devotion of substantially all of Employee’s productive business time for the efficient and successful operation of the business of the Company.

		
	3.
	Compensation and Benefits.

		
	3.1
	Cash Compensation.

(a)    For the performance of Employee's duties hereunder following the Commencement Date, the Company shall pay Employee an annual salary in the amount of three hundred and sixteen thousand dollars ($316,000.00) (“Base Compensation”).  The Base Compensation shall be paid in installments every two weeks over twenty-six (26) pay periods per year, based on and in accordance with Company's regular payroll procedures.

		
	3.2
	Bonus Plan.

(a)    Employee shall be entitled to participation in the performance bonus compensation plan further defined in Section 3.2(b). Additional detail of the performance bonus compensation plan will be provided in written detail to Employee once the performance bonus compensation plan is adopted 

Page 1 of 13

by the Board, which will occur within a reasonable time after the Commencement Date. Any bonus or incentive compensation paid to Employee shall be in addition to Base Compensation.
 
(b)    Employee shall be eligible annually for a performance-based bonus of up to twenty percent (20%) of Base Compensation, or sixty-three thousand and two hundred dollars ($63,200.00). The amount of the bonus shall be determined by the Board and the Company CEO, based on their reasonable assessments of Employee's performance and the Company's performance against appropriate goals established annually by the Board or the Compensation Committee of the Board after consultation with the Employee, prior to the beginning of the period of time from which the performance of the Employee would be evaluated and measured for such bonus. If all such goals are achieved for a given period, the amount of the bonus will be up to twenty percent (20%) of Base Compensation for that period. Employee's bonus, as earned, shall be payable at the later of (i) the end of the first fiscal quarter of the company following the end of the period for which the bonus was earned, or (ii) upon the issuance of the independent auditors' report for the period ending when the bonus was earned.  The first bonus period shall be for the period commencing on the Commencement Date and ending at the last day of the Company's fiscal year in which the Commencement Date occurs, unless the Board reasonably determines that results in a stub bonus period (defined as a period of three (3) months or less) that is so short as to be impractical (in which event the first bonus period shall be said stub bonus period plus the next full Company fiscal year after the Company fiscal year in which the Commencement Date occurs). Thereafter, the bonus plan period shall be the Company fiscal year.

3.3    Stock Options and Restricted Stock Grant.

(a)    From time to time the Company may grant to employee under the Company's Stock Option Plan (or its successor stock plan) to purchase shares of the Company's common stock at a stated exercise price per share.

(b)    Effective on the Commencement Date, the Company shall grant to Employee a stock option under the 2011 Stock Option Plan (the "Plan") to purchase fifty thousand (50,000) shares of Common Stock, with the exercise price of the stock options fixed under the Plan as of the Commencement Date, with the option to be treated as an incentive stock option to the greatest extent permitted by law and a non-qualified stock option as to the balance, vesting in equal installments over a forty-eight (48)-month period beginning on  the Commencement Date (the "Stock Options").  In the event of a Change of Control as defined in section 4 hereof, the Stock Options shall become subject to accelerated vesting conditions. 

3.4    Benefits. Employee and Employee’s dependents shall be entitled to such medical/dental, disability and life insurance coverage and such 401(k) plan and other retirement plan participation, vacation, sick leave and holiday benefits, if any, and any other benefits as are made available either to Company's other senior executives or to the Company's personnel generally, whichever is greater, all in accordance with the Company's benefits program in effect from time to time. The Employee is responsible for paying the employee's portion of the benefit costs consistent with other similarly situated employees of the Company. The medical/dental, disability and life benefits provided to Employee under this Section 3.4 shall continue until, and shall terminate, six (6) months after a Termination Event pursuant to Section 4 or Section 5 hereof, except to the extent that Employee receives comparable benefits at a future employer during the six (6) months after the Termination Event, in which case the pertinent benefits from the Company shall end upon Employee's enrollment in the future employer's benefit plan.

Page 2 of 13

		
	3.5
	Reimbursement of Expenses. Employee shall be entitled to be reimbursed for all reasonable expenses including the cost of travel for business; home office operation; business meals and entertainment, incurred by Employee in performing her tasks, duties and responsibilities under Section 2 or otherwise in connection with and reasonably related to the furtherance of the Company's business. Employee shall submit expense reports and receipts documenting the expenses incurred in accordance with Company policy, and will comply with using the Company's electronic travel and expense software and travel planning systems.

		
	3.6
	Mobile Device & Phones. The Company shall provide a mobile phone that is compliant with the company policy and is HIPAA compliant. The Employee is welcome to use Employee’s own device or phone, but it must be registered with the Information Technology department and must follow the Company's "BYOD" (Bring Your Own Device) policies, including but not limited to setting up of passwords, backups of information and compliance with email and communication policies.

3.7    Moving Expenses. Intentionally Omitted.

		
	4.
	Change of Control.

4.1    In the event of a termination of Employee's employment hereunder by the Company  without Cause or by Employee with Good Reason, within twelve (12) months following a Change of Control, the Company will promptly pay Employee, in lieu of the amounts required under Section 5.2(b) and in addition to the amounts required under Sections 3.4, 3.5 and 5.2(a), a severance amount, payable in a lump sum immediately upon the later of such termination of employment or Employee's execution of a Release in the form attached as Exhibit A (which the Company shall execute contemporaneously), equal to twelve (12) months base compensation, plus an amount equal to the prior year bonus.

4.2    In the event of a termination of Employee's employment hereunder by the Company with Cause or by Employee without Good Reason, within twelve (12) months following a Change of Control, the Company will promptly pay Employee, in lieu of the amounts required under Section 5.2(b) and in addition to the amounts required under Sections 3.4, 3.5 and 5.2(a), a severance amount, payable in a lump sum immediately upon the later of such termination of employment or Employee's execution of a Release in the form attached as Exhibit A (which the Company shall execute contemporaneously), equal to six (6) months base compensation, plus an amount equal to the prior year bonus.

4.3    As used herein, a "Change of Control" of the Company shall mean any of the following:

(i) the acquisition by any person(s) (individual, entity or affiliated or unaffiliated group) in one or a series of transactions (including, without limitation, issuance of shares by the Company or through merger of the Company with another entity) of direct or indirect record or beneficial ownership of 50% or more of the voting power with respect to matters put to the vote of the shareholders of the Company and, for this purpose, the terms "person" and "beneficial ownership" shall have the meanings provided in Section 13(d) or 14(d) of the Securities Exchange Act of 1934 or related rules promulgated by the Securities and Exchange Commission; 

(ii) the commencement of or public announcement of an intention to make a tender or exchange offer for more than 50% of the then outstanding Shares of the common stock of the Company; 

Page 3 of 13

(iii) a sale of all or substantially all of the assets of the Company; or 

(iv) the Board, in its sole and absolute discretion, determines that there has been a sufficient change in the stock ownership of the Company to constitute a change in control of the Company. Notwithstanding the foregoing, the following acquisitions shall not constitute a "Change of Control": (1) any capital raised by the Company (not used for a redemption of outstanding shares); (2) the closing of any transaction that in good faith may be reasonably characterized as an acquisition of another entity by the Company rather than the other way around; or (3) any acquisition of the Company or its shares by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company.

		
	5.
	Termination

5.1    Termination Events. The employment hereunder will terminate upon the occurrence of any of the following events ("the Termination Event"):

(a)     Employee dies; or

(b)     The Company, by written notice to Employee or her personal representative, discharges Employee due to the inability to continue to perform the duties previously assigned to Employee hereunder prior to such injury, illness or disability for a continuous period exceeding 90 consecutive days or 180 out of 360 days by reason of injury, physical or mental illness or other disability, which condition has been certified by a physician reasonably acceptable to the Company; provided, however, that prior to discharging Employee due to such disability, the Company shall give a written statement of findings to Employee or her personal representative setting forth specifically the nature of the disability and the resulting performance  failures, and Employee shall have a period of thirty (30) days thereafter to respond in writing to the Company's findings, whereupon the Company shall conduct a reasonable and fair hearing with the Employee and any supporting witnesses and evidence for the Employee to reach a final determination; or

(c)     Employee is discharged by the Company for "Cause".  As  used  in  this Agreement, the term "Cause" shall mean:

		
	(i)
	Employee's final and unappealed conviction of (or pleading guilty or "nolo contendere" to) any felony or a major misdemeanor involving dishonesty or moral turpitude; provided, however, that prior to discharging Employee for Cause, the Company shall give a written statement of findings to Employee setting forth specifically the grounds on which Cause is based, and Employee shall have a period often (10) days thereafter to respond in writing to the Company's findings; or

		
	(ii)
	The Employee's (1) unreasonable  failure to perform her duties, as determined by the Board of Directors, or (2) substantial and material breach of, or default under, this Agreement or the Proprietary Information and Invention Assignment Agreement (as defined herein), (3) The unreasonable failure of the Company, as determined by the Board of Directors, to meet reasonable benchmarks that are in control of the Employee, as may be agreed to from time to time by the 

Page 4 of 13

Employee and the Board of Directors. In the case of any of the conditions set forth in this Section 5.1(c)(ii), the Employee shall be given written notice of the intent of the Board of Directors to terminate the Employee's employment under this paragraph, and shall be permitted thirty (30) days from receipt of such written notice to promptly cure any such breach or default to the reasonable satisfaction of the Board.

(d)      Employee is discharged by Company other than in accordance with Section 5.l(a)(c) (a termination "without Cause"), which the Company may do at any time, with at least thirty (30) days advance written notice, subject to the full performance of the obligations of the Company to the Employee pursuant to Section 4 or Section 5.2, as the case may be; or

(e)    Employee voluntarily terminates her employment due to "Good Reason", which shall mean (i) a material default by the Company in the performance of any of its obligations hereunder, which default remains uncured by the Company for a period of thirty (30) days following receipt of written notice thereof to the Company from Employee; (ii) a material diminution of the roles, responsibilities or duties and/or the position, title or authority of Employee hereunder; or (iii) a requirement that Employee report to any person(s) other than the CEO; or

(f) Employee voluntarily terminates her employment without Good Reason, which Employee may do at any time with at least thirty (30) days advance notice.

		
	5.2
	Effects of Termination.

(a)    Upon termination of Employee's employment hereunder for any reason, the Company will promptly pay Employee all Base Compensation owed to Employee and all bonuses earned, as previously defined in writing by the Company, and unpaid through the date of termination, which shall be the last day that Employee performs her duties for the Company (including, without limitation, salary and employee expenses reimbursements). Employee shall be paid for any performance bonus plan then in effect on a pro rata basis for that period of time during the fiscal year in which termination occurs, but such amount, if any shall only be paid at a commensurate time as other employees are paid their bonus amounts.

(b)    Unless Section 4 applies (in which case Section 4, and not this Section 5.2(b), will be followed), and in addition to the amounts required under Sections 3.4, 3.5 and 5.2(a):

(i)    Upon termination of Employee's employment under Sections 5.l(a), Company shall continue to pay the  Base Compensation to the estate of the Employee for a period of ninety (90) days after such death.

(ii)    Upon termination of Employee's employment under Section 5.l(b), the Company shall pay Employee, commencing immediately upon such termination of employment, monthly (or biweekly at the Company's discretion) amounts equal to the then applicable Base Compensation, excluding bonus, for a period of six (6) months after termination.

(c)    Upon termination of Employee's employment under Section 5.l(d) or 5.1(e), the Company shall pay Employee, commencing immediately upon the later of such termination of employment or Employee's execution of a Release (which the Company shall execute 

Page 5 of 13

contemporaneously) in the form attached as Exhibit A, monthly (or biweekly at the Company's discretion) amounts equal to the then applicable Base Compensation, excluding bonus, for a period of one (1) months after termination for every four (4) months of service, for a minimum payment of six (6) months’ Base Compensation and a maximum of twelve (12) months’ Base Compensation.

(d)    Upon termination of Employee's employment hereunder pursuant to Sections 5.l(b), 5.l(c), 5.l(d) or 5.1(f), Employee agrees as follows:

(i)    Any amounts paid according to above Section 4 or Section 5, following a termination event as described therein, are paid to Employee only for so long as Employee does not provide services to any commercial firm, corporation or other business enterprise which is involved in the business of development, marketing or providing a diagnostic service offering proprietary DNA probe or microarray or next generation sequencing to cancer researchers or physician practitioners or biotech and pharma companies that serve the cancer markets and categories in direct competition with the Company (“Competitive Engagements”).  Employee agrees not to engage in Competitive Engagements for a period of six (6) months after the date of termination.  Nothing in this Section 5.2(d) shall prevent Employee from accepting employment engagements, after the date of termination of her employment with the Company, with non-commercial entities including but not limited to research and academic institutions.

(ii)    Employee shall notify the Company in the event that she accepts a Competitive Engagement following six (6) months after her date of termination with the Company and she is still receiving payments according to above Sections 4 or 5.  In such instance, Employee agrees and acknowledges that she will no longer be entitled to receive such payments from the Company.

(iii)    The terms of the Cancer Genetics, Inc. Confidentiality, Proprietary Information and Inventions Agreement shall remain in effect for the time periods specified in this Agreement.

(iv)    Employee will not knowingly, directly and actively solicit any individual to leave the Company's then full-time employ, for any reason, to join or be employed by any employer that then employs Employee as an employee, director, consultant or advisor.

(v)    Employee will not knowingly, directly and actively induce any provider, agent, customer, supplier, distributor, or licensee of the Company to cease doing business with the Company or to breach its agreement with the Company.

(e)    Employee acknowledges that monetary damages may not be sufficient to compensate the Company for any economic loss, which may be incurred by reason of breach of the restrictive covenants set forth in Section 5.2(d). Accordingly, in the event of any such breach, the Company shall, in addition to any remedies available to the Company at law, be entitled to seek equitable relief in the form of an injunction, precluding Employee from continuing to engage in such breach.

Page 6 of 13

(f)    If any restriction set forth in Section 5.2(d) is held to be unreasonable, then Employee and the Company agree, and hereby submit, to the reduction and limitation of such prohibition to such area or period as shall be deemed reasonable.

(g)    Except as required by law, Employee agrees not to make to any person, including but not limited to customers of the Company, any statement that disparages  the  Company  or which reflects negatively upon the Company, including but not limited to statements regarding the Company's financial condition, its officers, directors, shareholders, employees and affiliates. The Company agrees not to make to any person, including but not limited to customers of the Company, any statement that disparages Employee or which reflects negatively upon Employee, including but not limited to statements regarding her financial condition, qualifications and professional competence.

		
	6.
	Conflicts of Interest

6.1    Duty to Disclose. Employee will provide the CEO and Board with a report on the existence of any actual conflicts of interest. In connection with any actual conflicts of interests, Employee will confidentially disclose the existence of any conflicts of interests, including her financial interest and the minimum about of facts necessary to assess the conflict of interest, to the CEO and Board or to any special committees with Board delegated powers considering the proposed transaction or arrangement. If the Board or committee has reasonable cause to believe that Employee has failed to disclose any actual conflict of interest, it shall inform Employee of the basis for such belief and afford Employee an opportunity to explain the alleged failure to disclose.

6.2    Determining Whether a Conflict of Interest Exists. After disclosure of the financial interest and  the  minimum about of facts necessary to assess the conflict of Interest, and  after any discussion with the Employee, Employee shall excuse him/herself from the Board or committee meeting while the determination of whether a conflict of interest exists is discussed and voted upon. The remaining Board or committee members shall determine whether a conflict of interest exists. Notwithstanding the foregoing, however, prior approval of the Board of Directors shall not be required if the transaction falls below a de minimis threshold established by the Board.

6.3    Addressing Conflict. If the Board determines that Employee has an actual conflict of interest, the Company and Employee shall employ good faith actions to resolve the conflict of interest.

7.     General Provisions.

7.1    Assignment. Neither party may assign or delegate any of her or its rights or obligations under this Agreement without the prior written consent of the other party.

7.2    Entire Agreement. This Agreement contains the entire agreement between the parties with respect to the subject matter hereof and supersedes any and all prior written and verbal agreements between the parties.

7.3    Modifications. This Agreement may be changed or modified only by an agreement in writing signed by both parties hereto.

7.4    Successors and Assigns. The provisions of this Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and permitted assigns and Employee and 

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Employee's legal representatives, heirs, legatees, distributees, assigns and transferees by operation of law, whether or not any such person shall have become a party to this Agreement and have agreed in writing to join and be bound by the terms and conditions hereof.

7.5    Governing Law. This Agreement shall be governed by, construed and enforced in accordance with, the laws of the State of New Jersey, and venue and jurisdiction for any disputes hereunder shall be heard in any court of competent jurisdiction in New Jersey for all purposes.

7.6    Severability. If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force and effect.

7.7    Further Assurances. The parties will execute such further instruments and take such further actions as may be reasonably necessary to carry out the intent of this Agreement.

7.8    Notices. Any notices or other communications required or permitted hereunder shall be in writing and shall be deemed received by the recipient when delivered personally or, if  mailed, five (5) days after the date of deposit in the United States mail, certified or registered, postage prepaid and addressed, in the case of the Company, to the address set forth above, attention CEO, and in the case of Employee, to the address shown for Employee on the signature page hereof, or to such other address as either party may later specify by at least ten (10) days advance written notice delivered to the other party in accordance herewith.

7.9    No Waiver. The failure of either party to enforce any provision of this Agreement shall not be construed as a waiver of that provision,  nor prevent that party thereafter from enforcing that provision of any other provision of this Agreement.

7.10    Legal Fees and Expenses. In the event of any disputes under this Agreement, each party shall be responsible for their own legal fees and expenses which it may incur in resolving such dispute, unless otherwise provided by applicable law or a court of competent jurisdiction.

7.11    Counterparts. This Agreement may be executed by exchange of facsimile signature pages and/or in counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

7.12    Insurance on Employee. The Company shall be entitled to obtain and maintain, at the Company's expense, key person life insurance on the life of the Employee, naming the Company as the beneficiary of such policy. Employee agrees to cooperate with the Company and take all reasonable actions necessary to obtain such insurance, such as taking usual and customary physical examinations and providing true and accurate personal, health related information for any application at no cost to Employee.

7.13    Proprietary Information and Invention Assignment Agreement. The terms of the proprietary information and invention assignment agreement to be signed by Employee on the Commencement Date (the "Proprietary Information and Invention Assignment Agreement") are incorporated herein by reference. If there is any conflict between the terms of the Proprietary Information and Invention Assignment Agreement and the terms of this Agreement, the terms of this Agreement shall prevail.

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7.14    409A Compliance.   All payments under this Agreement are intended to comply with or be exempt from the requirements of Section 409A of the Code and regulations promulgated thereunder (“Section 409A”).  As used in this Agreement, the “Code” means the Internal Revenue Code of 1986, as amended.  To the extent permitted under applicable regulations and/or other guidance of general applicability issued pursuant to Section 409A, the Company reserves the right to modify this Agreement to conform with any or all relevant provisions regarding compensation and/or benefits so that such compensation and benefits are exempt from the provisions of 409A and/or otherwise comply with such provisions so as to avoid the tax consequences set forth in Section 409A and to assure that no payment or benefit shall be subject to an “additional tax” under Section 409A.  To the extent that any provision in this Agreement is ambiguous as to its compliance with Section 409A, or to the extent any provision in this Agreement must be modified to comply with Section 409A, such provision shall be read in such a manner so that no payment due to the Employee shall be subject to an “additional tax” within the meaning of Section 409A(a)(1)(B) of the Code.  If necessary to comply with the restriction in Section 409A(a)(2)(B) of the Code concerning payments to “specified employees,” any payment on account of the Employee’s separation from service that would otherwise be due hereunder within six (6) months after such separation shall be delayed until the first business day of the seventh month following the Termination Date and the first such payment shall include the cumulative amount of any payments (without interest) that would have been paid prior to such date if not for such restriction.  Each payment in a series of payments hereunder shall be deemed to be a separate payment for purposes of Section 409A. In no event may the Employee, directly or indirectly, designate the calendar year of payment. All reimbursements provided under this Agreement shall be made or provided in accordance with the requirements of Section 409A, including, where applicable, the requirement that (i) any reimbursement is for expenses incurred during the Employee’s lifetime (or during a shorter period of time specified in this Agreement), (ii) the amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year, (iii) the reimbursement of an eligible expense will be made on or before the last day of the calendar year following the year in which the expense is incurred, and (iv) the right to reimbursement is not subject to liquidation or exchange for another benefit.  Notwithstanding anything contained herein to the contrary, the Employee shall not be considered to have terminated employment with the Company for purposes of Section 5 unless the Employee would be considered to have incurred a “termination of employment” from the Company within the meaning of Treasury Regulation §1.409A-1(h)(1)(ii).  In no event whatsoever shall the Company be liable for any additional tax, interest or penalty that may be imposed on the Employee by Section 409A or damages for failing to comply with Section 409A.

[Signature Page to Follow]

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IN WITNESS WHEREOF, the Company and Employee have executed this Agreement, effective as of the day and year of the last signature below.

CANCER GENETICS, INC.

By:     /s/ Panna Sharma        

Date:     05/10/2017                
Name:  Panna Sharma
Title:    CEO & President

EMPLOYEE

/s/ Dr. Rita Shaknovich        
Dr. Rita Shaknovich

Date:     05/11/2017            

Address:

                

                

                

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EXHIBIT A

RELEASE

1. In exchange for the good and valuable consideration set forth in the Employment Agreement between the parties, the undersigned individual ("Releasor"), on her own behalf and on behalf of her heirs, beneficiaries and assigns, hereby releases and forever discharges Cancer Genetics, Inc. and its subsidiaries and all of their respective officers and directors, employees, agents, attorney, successors and assigns (collectively, "Company Group"), both individually and in their official capacities, from any and all liability, claims, demands, actions and causes of action of any type (collectively, ''Claims") which Releasor has had in the past, now has, or might now have, through the date of the Releasor’s execution of this Release, in any way resulting from, arising out of or connected with her employment by Cancer Genetics, Inc. and its subsidiaries (collectively, "Company") or its termination or pursuant to any federal, state or local employment law, regulation or other requirement (including without limitation, and such as each may be amended from time to time, the Title VII of the Civil Rights Act of 1964,; the Civil Rights Act of 1991, the Equal Pay Act, the Age Discrimination in Employment Act (“ADEA”), the Americans with Disabilities Act, ERISA (excluding COBRA), the Fair Credit Reporting Act, OSHA, the Genetic Information Nondiscrimination Act, the Family Medical Leave Act, the Fair Labor Standards Act, the Sarbanes Oxley Act of 2002, the False Claims Act, the New Jersey Law Against Discrimination, the Conscientious Employee Protection Act, the New Jersey Family Leave Act, the New Jersey False Claims Act). “Claims” also means any and all actions, charges, controversies, demands, causes of action, suits, rights, and/or claims whatsoever for debts, sums of money, wages, salary, severance pay, commissions, fees, bonuses, unvested stock options, vacation pay, sick pay, fees and costs, attorney’s fees, losses, penalties, damages, including damages for pain and suffering and emotional harm, arising, directly or indirectly, out of any promise, agreement, offer letter, contract, understanding, common law, tort, statutes, and/or regulations. 

2. Excluded from the scope of this Release is (i) any claim or right of Releasor under any policy or policies of directors and officers liability insurance maintained by the Company as in effect from time to time; and (ii) any right of or for indemnification or contribution pursuant to contract and/or the Articles of Incorporation or By-Laws (or other charter documents) of the Company that Releasor has or hereafter may acquire if any claim is asserted or proceedings are brought against Releasor including, without limitation, if by any governmental or regulatory agency, or by any customer, creditor, employee or shareholder of the Company, or by any self-regulatory organization, stock exchange or the like, arising out of or related or allegedly related to the undersigned individual being or having been an officer or employee of the Company or to any of her actions, inactions or activities as an officer or employee of the Company; (iii) any rights or claims that may arise after the date Releaser signs this Agreement; (iv) any claim for workers’ compensation benefits (but it does apply to, waive and affect claims of discrimination and/or retaliation on the basis of having made a workers’ compensation claim); (v) claims for unemployment benefits; (vi) any other claims or rights that by law cannot be waived in a private agreement between an employer and employee; or (vii) Releasor’s rights to any vested benefits to which she is entitled under the terms of the applicable employee benefit plan (the “Excluded Claims”).

3.    This Agreement is not intended to, and shall not, in any way prohibit, limit or otherwise interfere with:

(a)    Releasor’s protected rights under federal, state or local employment discrimination laws (including, without limitation, the ADEA and Title VII) to communicate or file a charge with, 

or participate in an investigation or proceeding conducted by, the Equal Employment Opportunity Commission (“EEOC”) or similar federal, state or local government body or agency charged with enforcing employment discrimination laws. Therefore, nothing herein shall prohibit, interfere with or limit Releasor from filing a charge with, communicating with or participating in any manner in an investigation, hearing or proceeding conducted by, the EEOC or similar federal, state or local agency. However, Releasor shall not be entitled to any relief or recovery (whether monetary or otherwise), and Releasor hereby waives any and all rights to relief or recovery, under, or by virtue of, any such filing of a charge with, or investigation, hearing or proceeding conducted by, the EEOC or any other similar federal, state or local government agency relating to any claim that has been released herein;

(b) Releasor’s protected right to test in any court, under the Older Workers Benefit Protection Act, or like statute or regulation, the validity of the waiver of rights under ADEA in this Agreement;

(c) Releasor’s right to enforce the terms of this Agreement and to exercise her rights relating to any other Excluded Claims; or

(d)  Releasor’s protected rights under federal, state or local law to without notice to the Company: (i) communicate or file a charge with a government regulator; (ii) participate in an investigation or proceeding conducted by a government regulator; or (iii) receive an award paid by a government regulator for providing information.

    4. Releasor represents and warrants that she has no charges, lawsuits, or actions pending in hers name against any of the Company Group relating to any claim that has been released in this Agreement. Releasor also represents and warrants that she has not assigned or transferred to any third party any right or claim against any of the Company Group that she has released herein. Except with respect to the Excluded Claims, Releasor covenants and agrees that she will not report, institute or file a charge, lawsuit or action (or encourage, solicit, or voluntarily assist or participate in, the reporting, instituting, filing or prosecution of a charge, lawsuit or action by a third party) against any of the Company Group with respect to any claim that has been released herein.

5.    Releasor agrees, at the Company’s request, to reasonably cooperate, by providing truthful information, documents and testimony, in any Company investigation, litigation, arbitration, or regulatory proceeding regarding events that occurred during Releasor’s employment with the Company. This may include, for example, making herself reasonably available to consult with the Company’s counsel, providing truthful information and documents, and to appear to give truthful testimony. The Company will, to the extent permitted by applicable law and court rules, reimburse Releasor for reasonable out-of-pocket expenses and actual lost wages that she incurs in providing any requested cooperation, so long as she provides advance written notice to the Company of her request for reimbursement and provides satisfactory documentation of the expenses and actual lost wages. Nothing in this section is intended to, and shall not, preclude or limit Releasor’s protected rights described in the Excluded Claims.

6.    Releasor confirms that has returned to the Company any and all Company documents, materials and information (whether in hardcopy, on electronic media or otherwise) related to Company business and/or containing any non-public information concerning the Company, as well as all equipment, keys, access cards, credit cards, computers, computer hardware and software, electronic devices and any other Company property in her possession, custody or control. Releasor also represents and warrants that she has not retained copies of any Company documents, materials or information (whether in hardcopy, on electronic media or otherwise). Releasor also agrees that 

she will disclose to the Company all passwords necessary or desirable to enable the Company to access all information which she has password-protected on any of its computer equipment or on its computer network or system.

7.    The undersigned individual further acknowledges that she has been advised by this writing that: (a) her waiver and release in this Release does not apply to any rights or claims that may arise after the execution date of this Release; (b) that she is encouraged by Company and has the right to consult with an attorney prior to executing this Release; (c) she has been provided with up to twenty-one (21) to review and consider this Release ; (d) she has seven (7) days following her execution and delivery of this Release to revoke this Agreement by so notifying the Company in writing (c/o the CEO); and (e) this Release shall not be effective until the date upon which the seven (7) day revocation period has expired unexercised (the "Effective Date"), which shall be the eighth day after this Release is executed by the undersigned individual. 

8.    The Company hereby releases and forever discharges the Releasor and her heirs, beneficiaries and representatives and assigns, both individually and in their official capacities, from any and all Claims (defined above) which it has had in the past, now has, or might now have, through the date of its execution and delivery of this Release, in any way resulting from, arising out of, or connected with Releasor’s employment with the Company or separation therefrom. Company agrees not to take any action that is designed, specifically as to you or with respect to a class of similarly situated employees, to reduce or abrogate, or may reasonably be expected to result in an abridgement or elimination of, any rights of indemnification or contribution available to Releasor, as described above, or under any such policy or policies of directors and officers liability insurance, unless any such abridgement or elimination of rights also is generally applicable to all then-current officers and employees of the Company. Notwithstanding the foregoing, nothing herein shall constitute a release by Company against Releasor for fraud, theft, or illegal acts or omissions.

9.    This Release does not constitute an admission by the Company or by the undersigned individual of any wrongful action or violation of any federal, state, or local statute, or common law rights, including those relating to the provisions of any law or statute concerning employment actions, or of any other possible or claimed violation of law or rights. This Release is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein, and it supersedes any other such promises, warranties or representations. This Release may not be modified or amended except in a writing signed by both the undersigned individual and a duly authorized officer of the Company. 

10.    This Release will bind the heirs, personal representatives, successors and assigns of both the undersigned individual and the Company, and inure to the benefit of both the undersigned individual and the Company and their respective heirs, successors and assigns. If any provision of this Release is determined to be invalid or unenforceable, in whole or in part, this determination will not affect any other provision of this Release and the provision in question will be modified by the court so as to be rendered enforceable. This Agreement will be deemed to have been entered into and will be construed and enforced in accordance with the laws of the state of New Jersey as applied to contracts made and to be performed entirely within New Jersey.

Cancer Genetics, Inc.                                                 Employee

By: ______________________________         ____________________________
Name/Title:         Name: Dr. Rita Shaknovich

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