Document:

2011 Management Incentive Plan

 Exhibit 10.13 

 

									
	  

 

  
	  	 2011 Management Incentive
 Plan (MIP)

	
Effective
 Date: 01/01/2011
	  	 Supersedes:
 2010 Policies
	  	 Policy
 Number: HR.01.11
	  	 Issuer:
 Human Resources
	  	 Page: 
 1
 of 3

 SCOPE 

 

	1.00	This policy applies to regular full-time employees of Forum that have been approved to participate in the MIP by the Chief Executive Officer and Vice President Human
Resources. 

 PURPOSE 
  

	2.00	The purpose of the MIP is to incentivize and reward key employees that have a significant impact on Forum obtaining its overall performance goals.

 POLICY 
 Eligibility 
  

	3.00	Employees eligible to participate in the MIP include key management and sales personnel and other key employees that have been proposed by Division management and
approved by the FET Chief Executive Officer and Vice President Human Resources. 

  

	3.01	Participant must be a full-time regular employee at the time of the bonus payment to be eligible to receive the bonus payout. An eligible employee who completes the MIP
period and is terminated due to a reduction in force or retires in accordance with FET policy before the MIP bonus payment will be eligible to receive the bonus subject to the normal review and approval process. 

 

	3.02	Employees participating in the MIP may not participate in any other annual incentive bonus plans at Forum. Exceptions can be approved by the Chief Executive Officer.

  

	3.03	Employees that become eligible for the MIP during the calendar year will be eligible to participate on a prorated basis, 

 

	3.04	If the MIP Target percent or salary rate for an employee changes during the calendar year due to promotion or demotion, the MIP target level and the salary used to
calculate the MIP will be adjusted for the remainder of the MIP period and calendar year starting on the next payroll cycle following the change. 

									
	  

 

  
	  	 2011 Management Incentive
 Plan (MIP)

	
Effective
 Date: 01/01/2011
	  	 Supersedes:
 2010 Policies
	  	 Policy
 Number: HR.01.11
	  	 Issuer:
 Human Resources
	  	 Page: 
 2
 of 3

  

 Measurement Criteria 

 

	3.05	For 2011, there will be different areas of financial measures utilized for executive officers, other FET employees and for employees at the Division level. The
measurement criteria are set forth on the attached Schedule A 

  

	3.06	The EPS and Operating Income targets are derived from the approved 2011 Financial Plan and are specified in Schedule B. 

 

	3.07	The employee’s target bonus level will be established based on the employee’s position, job responsibilities and discretion of management.

  

	3.08	If the company achieves 100% of plan for a financial measure, then the target bonus will be paid. 

 

	3.09	If actual performance is 125% of plan target or more, an Over-Achievement (OA) level will be awarded and the participant will receive a bonus award at 200% of the
target bonus. If actual performance is greater than 100% but less than 125% of the plan target, the bonus award will be prorated appropriately between 100% and 200% of the target bonus. 

 

	3.10	If actual performance is below 75% of plan no bonus will be earned or awarded. For actual performance between 75% and 100% of plan, the bonus payout will be prorated
appropriately between 0% and 100% of the target bonus. 

  

	3.11	 Participation in the plan will be for the calendar year January through December 2011. YTD base wages for the 2011 year will be used to calculate the
bonus award. The MIP will be measured and paid annually. The earned bonus will be paid in the first quarter of the following year, but no later than March 15th. 

  

	3.12	Target Operating Income and EPS includes MIP expense at the planned level as recorded in the 2011 Plan approved by the Board of Directors. Achievement of minimum or
maximum payout levels will include the expected level of MIP expense in Operating Income and EPS. Certain special, non-recurring gains and losses will be excluded from actual results, as approved by the CEO, e.g. gain or loss on sale
of an asset or operation. 

									
	  

 

  
	  	 2011 Management Incentive
 Plan (MIP)

	
Effective
 Date: 01/01/2011
	  	 Supersedes:
 2010 Policies
	  	 Policy
 Number: HR.01.11
	  	 Issuer:
 Human Resources
	  	 Page: 
 3
 of 3

  

	3.13	In the case of any acquisitions closed during the calendar year, annual MIP targets will be adjusted to include Operating Income and EPS amounts based on estimates for
the calendar year presented to the Board of Directors in approving the acquisition. Actual performance will include Operating Income and EPS amounts pro forma from the beginning of the calendar year for the acquisition. Transaction expenses to
complete the acquisition will not be included. 

 COMPLIANCE 

 

	4.00	Notwithstanding any provisions in the MIP to the contrary, any portion of the payments and benefits provided under the MIP, as well as any other payments and benefits
which the Employee receives pursuant to a Company plan or other arrangement, shall be subject to a clawback to the extent necessary to comply with the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act or any Securities
and Exchange Commission rule. 

 RESPONSIBILITY 

 

	5.00	It is the responsibility of the executive management team and the Human Resources department to administer this policy. It is the responsibility of the controller and
CFO to review and approve the bonus information for accuracy. 

 

 

 Schedule A 
 2011 Management Incentive Plan 
 The 2011 plan will consist of two forms of financial
measures at three operational levels of the organization. The incentive period is for the calendar year. 
 Levels: 

 

	 	•	 	 Corporate– measured on Operating Income for the FET Corporate Plan. This measure will comprise 100% of the formula at the Corporate
level. Executive Officers will have 33.3% measured on pre-tax Earnings Per Share (EPS) and the balance on FET Operating Income. 

  

	 	•	 	 Division/Product Group- measured on Operating Income by Product Groups: Drilling, Subsea, Allied Technologies, and Global Flow
Technologies. This measure will comprise 50% of the formula for participants at the Product Group level and the balance on FET Operating Income. 

 Performance 
  

	 	•	 	 For Operating Income achievement of 100% of Plan targets will produce an award at the target level bonus. For EPS achievement of 2011 target objective
will produce an award at target level bonus. 

  

	 	•	 	 An Entry Level (EL) bonus award will be achieved for performance at greater than 75% of plan. The EL award will be prorated for results between 75% and
100%. The EL award is 0 at 75%. 

  

	 	•	 	 An Overachievement (OA) bonus award will be achieved for performance at 125% of plan. The OA award is 200% of the target bonus. The award will be
prorated for results between 100% and 125%. 

 There are approximately 285 participants in the 2011 MIP. There are an
additional 58 employees that participate in a sales incentive plan within the organization. 

													
	

	  	   
  
	SCHEDULE B  

2011 MIP Plan Targets
	    
   

				
	 	  	2011 Entry Level (EL)
75%	 	  	2011 Plan Target
100%	 	  	2011 Over-
Achievement (OA)
125%	 
	 Forum Energy Technologies
	  				  				  			
	 Operating Income
	  	$	84,075	  	  	$	112,100	  	  	$	140,125	  
	 Earnings Per Share (pre-tax)
	  	$	41	  	  	$	54	  	  	$	68	  
				
	 Drilling & Subsea
	  				  				  			
	 Consolidated (Operating Income)
	  	$	56,027	  	  	$	74,703	  	  	$	93,379	  
	 Drilling (Operating Income)
	  	$	42,392	  	  	$	56,523	  	  	$	70,654	  
	 Subsea (Operating Income)
	  	$	13,635	  	  	$	18,180	  	  	$	22,725	  
				
	 Production & Infrastructure
	  				  				  			
	 Consolidated (Operating Income)
	  	$	37,703	  	  	$	50,270	  	  	$	62,838	  
	 Production Equipment (Operating Income)
	  	$	10,421	  	  	$	13,894	  	  	$	17,368	  
	 Valves (Operating Income)
	  	$	14,430	  	  	$	19,240	  	  	$	24,050	  
	 Pipeline Equipment (Operating Income)
	  	$	1,452	  	  	$	1,936	  	  	$	2,420	  
	 Completion Products (Operating Income)
	  	$	11,400	  	  	$	15,200	  	  	$	19,000	  

																																									
	

	 	 
  

 
	SCHEDULE B
 Forum
Energy Technologies
 2011 MIP Performance Measure Allocation
	  
   

  

					
	 	 	 	 	 	 	 	 	Drilling & Subsea	 	 	Production & Infrastructure	 
	 	 	FET	 	 	Consolidated	 	 	Drilling	 	 	Subsea	 	 	Consolidated	 	 	Production
Equipment	 	 	Valves	 	 	Completion
Products	 	 	Pipeline
Equipment	 
	 	 	Operating Income	 	 	Earnings Per Share	 	 	Operating Income	 	 	Operating Income	 
	 FET Corporate
	 	 	66.7	% 	 	 	33.3	% 	 				 				 				 				 				 				 				 			
											
	 Drilling & Subsea President
	 	 	37.5	% 	 	 	12.5	% 	 	 	50	% 	 				 				 				 				 				 				 			
											
	 Drilling Operations
	 	 	50	% 	 				 				 	 	50	% 	 				 				 				 				 				 			
											
	 Subsea Operations
	 	 	50	% 	 				 				 				 	 	50	% 	 				 				 				 				 			
											
	 Production & Infrastructure President
	 	 	37.5	% 	 	 	12.5	% 	 				 				 				 	 	50	% 	 				 				 				 			
											
	 Production Equipment
	 	 	50	% 	 				 				 				 				 				 	 	50	% 	 				 				 			
											
	 Valves
	 	 	50	% 	 				 				 				 				 				 				 	 	50	% 	 				 			
											
	 Completions Products
	 	 	50	% 	 				 				 				 				 				 				 				 	 	50	% 	 			
											
	 Pipeline Equipment
	 	 	50	% 	 				 				 				 				 				 				 				 				 	 	50	%2010 Stock Incentive Plan

 Exhibit 10.14 
 FORUM ENERGY TECHNOLOGIES, INC. 
 2010 STOCK INCENTIVE PLAN

 I. PURPOSE OF THE PLAN 
 The purpose of the FORUM ENERGY TECHNOLOGIES, INC. 2010 STOCK INCENTIVE PLAN (the “Plan”) is to provide a means through which FORUM ENERGY TECHNOLOGIES, INC., a Delaware
corporation (the “Company”), and its Affiliates may attract able persons to serve as Directors or Consultants or to enter the employ of the Company and its Affiliates and to provide a means whereby those individuals upon whom
the responsibilities of the successful administration and management of the Company and its Affiliates rest, and whose present and potential contributions to the Company and its Affiliates are of importance, can acquire and maintain stock ownership,
thereby strengthening their concern for the welfare of the Company and its Affiliates. A further purpose of the Plan is to provide such individuals with additional incentive and reward opportunities designed to enhance the profitable growth of the
Company and its Affiliates. Accordingly, the Plan provides for granting Incentive Stock Options, options that do not constitute Incentive Stock Options, Restricted Stock Awards, Performance Awards, Phantom Stock Awards, Bonus Stock Awards, or any
combination of the foregoing, as is best suited to the circumstances of the particular employee, Consultant, or Director as provided herein. 
 The Plan as set forth herein constitutes an amendment and restatement of the Prior Plan. Except as provided in the following sentence, the Plan shall supersede and replace in its entirety the Prior Plan.
Notwithstanding any provisions herein to the contrary, each award granted under the Prior Plan prior to the effective date of this amendment and restatement shall be subject to the terms and provisions applicable to such award under the Prior Plan,
as in effect immediately prior to this amendment and restatement. 
 II. DEFINITIONS 

The following definitions shall be applicable throughout the Plan unless specifically modified by any paragraph: 

(a) “Affiliate” means any corporation, partnership, limited liability company or partnership,
association, trust, or other organization which, directly or indirectly, controls, is controlled by, or is under common control with, the Company. For purposes of the preceding sentence, “control” (including, with correlative meanings, the
terms “controlled by” and “under common control with”), as used with respect to any entity or organization, shall mean the possession, directly or indirectly, of the power (i) to vote more than 50% of the securities having
ordinary voting power for the election of directors of the controlled entity or organization or (ii) to direct or cause the direction of the management and policies of the controlled entity or organization, whether through the ownership of
voting securities or by contract or otherwise. 
 (b) “Award” means, individually or
collectively, any Option, Restricted Stock Award, Performance Award, Phantom Stock Award, or Bonus Stock Award. 

 (c) “Board” means the Board of Directors of the
Company. 
 (d) “Bonus Stock Award” means an Award granted under Paragraph XI of the
Plan. 
 (e) “Change in Control” shall have the meaning assigned to such term in Exhibit
A to the Plan. 
 (f) “Code” means the Internal Revenue Code of 1986, as amended.
Reference in the Plan to any section of the Code shall be deemed to include any amendments or successor provisions to such section and any regulations under such section. 

(g) “Committee” means a committee of the Board that is selected by the Board as provided in
Paragraph IV(a). 
 (h) “Common Stock” means the common stock, par value $.01 per share,
of the Company, or any security into which such common stock may be changed by reason of any transaction or event of the type described in Paragraph XII. 
 (i) “Company” means Forum Energy Technologies, Inc., a Delaware corporation. 
 (j) “Consultant” means any person who is not an employee or a Director and who is providing advisory or consulting services to the Company or any Affiliate. 

(k) “Corporate Change” shall have the meaning assigned to such term in Paragraph XII(c) of the
Plan. 
 (l) “Director” means an individual who is a member of the Board. 

(m) An “employee” means any person (including a Director) in an employment relationship with the
Company or any Affiliate. In addition, in connection with the Triton Merger (as such term is defined in that certain Combination Agreement dated July 16, 2010, by and among Forum Oilfield Technologies, Inc., Triton Group Holdings LLC and the
other parties thereto), an individual who holds “Series A Management Units” and/or “Series B Management Units” in Triton Group Holdings LLC shall be considered an “employee” (without regard to whether such individual is
currently providing or formerly provided services to Triton Group Holdings LLC or an affiliate thereof as an employee or in another capacity) for purposes of determining eligibility under the Plan to receive Awards. 

(n) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

(o) “Fair Market Value” means, as of any specified date, the closing price of the Common Stock, if
the Common Stock is listed on a national stock exchange registered under section 6(a) of the Exchange Act, reported on the stock exchange composite tape on that date (or such other reporting service approved by the Committee);

  
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or, if no closing price is reported on that date, on the last preceding date on which such closing price of the Common Stock is so reported. If the Common Stock is traded over the counter at the
time a determination of its fair market value is required to be made hereunder, its fair market value shall be deemed to be equal to the average between the reported high and low or closing bid and asked prices of Common Stock on the most recent
date on which Common Stock was publicly traded. In the event Common Stock is not publicly traded at the time a determination of its value is required to be made hereunder, the determination of its fair market value shall be made by the Committee in
such manner as it deems appropriate and as is consistent with the requirements of section 409A of the Code. 

(p) “Incentive Stock Option” means an incentive stock option within the meaning of section 422 of
the Code. 
 (q) “Option” means an Award granted under Paragraph VII of the Plan and
includes both Incentive Stock Options to purchase Common Stock and Options that do not constitute Incentive Stock Options to purchase Common Stock. 
 (r) “Option Agreement” means a written agreement between the Company and a Participant with respect to an Option. 

(s) “Participant” means an employee, Consultant, or Director who has been granted an Award.

 (t) “Performance Award” means an Award granted under Paragraph IX of the Plan.

 (u) “Performance Award Agreement” means a written agreement between the Company and a
Participant with respect to a Performance Award. 
 (v) “Performance Measure” means one
or more performance measures established by the Committee that are based on (i) the price of a share of Common Stock, (ii) the Company’s earnings per share, (iii) the Company’s market share or the market share of a business
unit of the Company designated by the Committee, (iv) the Company’s sales or the sales of a business unit of the Company designated by the Committee, (v) operating income or operating income margin of the Company or a business unit of
the Company, (vi) the net income or net income margin (before or after taxes) of the Company or any business unit of the Company designated by the Committee, (vii) the cash flow or return on investment of the Company or any business unit
of the Company designated by the Committee, (viii) the earnings or earnings margin before or after interest, taxes, depreciation, and/or amortization of the Company or any business unit of the Company designated by the Committee, (ix) the
economic value added, (x) the return on capital, assets, or stockholders’ equity achieved by the Company, (xi) the total stockholders’ return achieved by the Company, or (xii) any combination of the foregoing. The
performance measures described in the preceding sentence may be absolute, relative to one or more other companies, relative to one or more indexes, or measured by reference to the Company alone or the Company together with one or more

  
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of its Affiliates. In addition, performance measures may be subject to adjustment by the Committee for changes in accounting principles, to satisfy regulatory requirements and other specified
significant extraordinary items or events. 
 (w) “Phantom Stock Award” means an Award
granted under Paragraph X of the Plan. 
 (x) “Phantom Stock Award Agreement” means a
written agreement between the Company and a Participant with respect to a Phantom Stock Award. 
 (y)
“Plan” means the Forum Energy Technologies, Inc. 2010 Stock Incentive Plan, as amended from time to time. 
 (z) “Prior Plan” means the Forum Oilfield Technologies, Inc. 2005 Stock Incentive Plan, as amended and in effect immediately prior to the effective date of the Plan. 

(aa) “Restricted Stock Agreement” means a written agreement between the Company and a Participant
with respect to a Restricted Stock Award. 
 (bb) “Restricted Stock Award” means an Award
granted under Paragraph VIII of the Plan. 
 (cc) “Rule 16b-3” means Securities Exchange
Commission Rule 16b-3 promulgated under the Exchange Act, as such may be amended from time to time, and any successor rule, regulation, or statute fulfilling the same or a similar function. 

(dd) “Stock Appreciation Right” means a right to acquire, upon exercise of the right, Common Stock
and/or, in the sole discretion of the Committee, cash having an aggregate value equal to the then excess of the Fair Market Value of the shares with respect to which the right is exercised over the exercise price therefor. The Committee shall retain
final authority to determine whether a Participant shall be permitted, and to approve an election by a Participant, to receive cash in full or partial settlement of a Stock Appreciation Right. 

III. EFFECTIVE DATE AND DURATION OF THE PLAN 
 The Plan shall become effective upon the date of its adoption by the Board, provided the Plan is approved by the stockholders of the Company within 12 months thereafter. Notwithstanding any provision in
the Plan to the contrary, no Option shall be exercisable, no Restricted Stock Award or Bonus Stock Award shall be granted, and no Performance Award or Phantom Stock Award shall vest or become satisfiable prior to such stockholder approval. No
further Awards may be granted under the Plan after 10 years from the date the Plan is adopted by the Board. The Plan shall remain in effect until all Options granted under the Plan have been satisfied or expired, all Restricted Stock Awards granted
under the Plan have vested or been forfeited, and all Performance Awards, Phantom Stock Awards, and Bonus Stock Awards have been satisfied or expired. 

  
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 IV. ADMINISTRATION 

(a) Composition of Committee. The Plan shall be administered by a committee of, and appointed by, the
Board. In the absence of the Board’s appointment of a committee to administer the Plan, the Board shall serve as the Committee. Notwithstanding the foregoing, from and after the date upon which the Company becomes a “publicly held
corporation” (as defined in section 162(m) of the Code and applicable interpretative authority thereunder), the Plan shall be administered by a committee of, and appointed by, the Board that shall be comprised solely of two or more outside
Directors (within the meaning of the term “outside directors” as used in section 162(m) of the Code and applicable interpretive authority thereunder and within the meaning of the term “Non-Employee Director” as defined in Rule
16b-3). 
 (b) Powers. Subject to the express provisions of the Plan, the Committee shall have
authority, in its discretion, to determine which employees, Consultants, or Directors shall receive an Award, the time or times when such Award shall be made, the type of Award that shall be made, the number of shares to be subject to each Option,
Restricted Stock Award, or Bonus Stock Award, and the number of shares to be subject to or the value of each Performance Award or Phantom Stock Award. In making such determinations, the Committee shall take into account the nature of the services
rendered by the respective employees, Consultants, or Directors, their present and potential contribution to the Company’s success, and such other factors as the Committee in its sole discretion shall deem relevant. 

(c) Additional Powers. The Committee shall have such additional powers as are delegated to it by the other
provisions of the Plan. Subject to the express provisions of the Plan, this shall include the power to construe the Plan and the respective agreements executed hereunder, to prescribe rules and regulations relating to the Plan, to determine the
terms, restrictions, and provisions of the agreement relating to each Award, including such terms, restrictions, and provisions as shall be requisite in the judgment of the Committee to cause designated Options to qualify as Incentive Stock Options,
and to make all other determinations necessary or advisable for administering the Plan. The Committee may correct any defect or supply any omission or reconcile any inconsistency in the Plan or in any agreement relating to an Award in the manner and
to the extent the Committee shall deem expedient to carry the Plan or any such agreement into effect. All determinations and decisions made by the Committee on the matters referred to in this Paragraph IV and in construing the provisions of the Plan
shall be conclusive. 
 (d) Delegation of Authority by the Committee. Notwithstanding the preceding
provisions of this Paragraph IV or any other provision of the Plan to the contrary, subject to the constraints of applicable law, the Committee may from time to time, in its sole discretion, delegate to the Chief Executive Officer of the Company the
administration (or interpretation of any provision) of the Plan, and the right to grant Awards under the Plan, insofar as such administration (and interpretation) and power to grant Awards relates to any person who is not subject to section 16 of
the Exchange Act (including any successor section to the same or similar effect). Any such delegation may be effective only so long as the Chief Executive Officer of the Company is a Director,

  
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and the Committee may revoke such delegation at any time. The Committee may put any conditions and restrictions on the powers that may be exercised by the Chief Executive Officer of the Company
upon such delegation as the Committee determines in its sole discretion. In the event of any conflict in a determination or interpretation under the Plan as between the Committee and the Chief Executive Officer of the Company, the determination or
interpretation, as applicable, of the Committee shall be conclusive. 
 V. SHARES SUBJECT TO THE PLAN; AWARD LIMITS;

 GRANT OF AWARDS 
 (a) Shares Subject to the Plan and Award Limits. Subject to adjustment in the same manner as provided in Paragraph XII with respect to shares of Common Stock subject to Options then
outstanding, the aggregate maximum number of shares of Common Stock that may be issued under the Plan, and the aggregate maximum number of shares of Common Stock that may be issued under the Plan through Incentive Stock Options, shall not exceed
400,000 shares (inclusive of the shares subject to outstanding awards granted under the Prior Plan and the shares that remain available for issuance under the Prior Plan immediately prior to the effective date of this amendment and restatement).
Shares shall be deemed to have been issued under the Plan only to the extent actually issued and delivered pursuant to an Award. To the extent that an Award lapses or the rights of its holder terminate, any shares of Common Stock subject to such
Award shall again be available for the grant of an Award under the Plan. In addition, shares issued under the Plan and forfeited back to the Plan, shares surrendered in payment of the exercise price or purchase price of an Award, and shares withheld
for payment of applicable employment taxes and/or withholding obligations associated with an Award shall again be available for the grant of an Award under the Plan. Notwithstanding any provision in the Plan to the contrary, (i) the maximum
number of shares of Common Stock that may be subject to Awards denominated in shares of Common Stock granted to any one individual during the term of the Plan may not exceed 50% of the aggregate maximum number of shares of Common Stock that may be
issued under the Plan (as adjusted from time to time in accordance with the provisions of the Plan) and (ii) the maximum amount of compensation that may be paid under all Performance Awards denominated in cash (including the Fair Market Value
of any shares of Common Stock paid in satisfaction of such Performance Awards) granted to any one individual during any calendar year may not exceed $20,000,000, and any payment due with respect to a Performance Award shall be paid no later than 10
years after the date of grant of such Performance Award. From and after the date upon which the Company becomes a “publicly held corporation” (as defined in section 162(m) of the Code and applicable interpretative authority thereunder),
the limitations set forth in clauses (i) and (ii) of the preceding sentence shall be applied in a manner that will permit Awards that are intended to provide “performance-based” compensation for purposes of section 162(m) of the
Code to satisfy the requirements of such section, including, without limitation, counting against such maximum number of shares, to the extent required under section 162(m) of the Code and applicable interpretive authority thereunder, any shares
subject to Awards granted to employees that are canceled or repriced. 

  
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 (b) Grant of Awards. The Committee may from time to time grant
Awards to one or more employees, Consultants, or Directors determined by it to be eligible for participation in the Plan in accordance with the terms of the Plan. 

(c) Stock Offered. Subject to the limitations set forth in Paragraph V(a), the stock to be offered pursuant
to the grant of an Award may be authorized but unissued Common Stock or Common Stock previously issued and outstanding and reacquired by the Company. Any of such shares which remain unissued and which are not subject to outstanding Awards at the
termination of the Plan shall cease to be subject to the Plan but, until termination of the Plan, the Company shall at all times make available a sufficient number of shares to meet the requirements of the Plan. The shares of the Company’s
stock to be issued pursuant to any Award may be represented by physical stock certificates or may be uncertificated. Notwithstanding references in the Plan to certificates, the Company may deliver uncertificated shares of Common Stock in connection
with any Award. 
 VI. ELIGIBILITY 
 Awards may be granted only to persons who, at the time of grant, are employees, Consultants, or Directors. An Award may be granted on more than one occasion to the same person, and, subject to the
limitations set forth in the Plan, such Award may include an Incentive Stock Option, an Option that is not an Incentive Stock Option, a Restricted Stock Award, a Performance Award, a Phantom Stock Award, a Bonus Stock Award, or any combination
thereof. 
 VII. STOCK OPTIONS 
 (a) Option Period. The term of each Option shall be as specified by the Committee at the date of grant, but in no event shall an Option be exercisable after the expiration of 10 years from
the date of grant. 
 (b) Limitations on Exercise of Option. An Option shall be exercisable in
whole or in such installments and at such times as determined by the Committee. 
 (c) Special Limitations
on Incentive Stock Options. An Incentive Stock Option may be granted only to an individual who is employed by the Company or any parent or subsidiary corporation (as defined in section 424 of the Code) of the Company at the time the Option
is granted. To the extent that the aggregate fair market value (determined at the time the respective Incentive Stock Option is granted) of stock with respect to which Incentive Stock Options are exercisable for the first time by an individual
during any calendar year under all incentive stock option plans of the Company and its parent and subsidiary corporations exceeds $100,000, such Incentive Stock Options shall be treated as Options which do not constitute Incentive Stock Options. The
Committee shall determine, in accordance with applicable provisions of the Code, Treasury regulations, and other administrative pronouncements, which of a Participant’s Incentive Stock Options will not constitute Incentive Stock Options because
of such limitation and shall notify the Participant of such determination as soon as 

  
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practicable after such determination. No Incentive Stock Option shall be granted to an individual if, at the time the Option is granted, such individual owns stock possessing more than 10% of the
total combined voting power of all classes of stock of the Company or of its parent or subsidiary corporation, within the meaning of section 422(b)(6) of the Code, unless (i) at the time such Option is granted, the option price is at least 110%
of the Fair Market Value of the Common Stock subject to the Option and (ii) such Option by its terms is not exercisable after the expiration of five years from the date of grant. Except as otherwise provided in sections 421 or 422 of the Code,
an Incentive Stock Option shall not be transferable otherwise than by will or the laws of descent and distribution and shall be exercisable during the Participant’s lifetime only by such Participant or the Participant’s guardian or legal
representative. 
 (d) Option Agreement. Each Option shall be evidenced by an Option Agreement in
such form and containing such provisions not inconsistent with the provisions of the Plan as the Committee from time to time shall approve, including, without limitation, provisions to qualify an Option as an Incentive Stock Option under section 422
of the Code. Each Option Agreement shall specify the effect of termination of (i) employment, (ii) the consulting or advisory relationship or (iii) membership on the Board, as applicable, or a Change in Control on the exercisability
of the Option. An Option Agreement may provide for the payment of the option price, in whole or in part, by the delivery of a number of shares of Common Stock (plus cash if necessary) having a Fair Market Value equal to such option price. Moreover,
an Option Agreement may provide for a “cashless exercise” of the Option by establishing procedures satisfactory to the Committee with respect thereto. Further, an Option Agreement may provide, on such terms and conditions as the Committee
in its sole discretion may prescribe, for the grant of a Stock Appreciation Right in connection with the grant of an Option and, in such case, the exercise of the Stock Appreciation Right shall result in the surrender of the right to purchase a
number of shares under the Option equal to the number of shares with respect to which the Stock Appreciation Right is exercised (and vice versa). In the case of any Stock Appreciation Right that is granted in connection with an Incentive Stock
Option, such right shall be exercisable only when the Fair Market Value of the Common Stock exceeds the exercise price specified therefor in the Option or the portion thereof to be surrendered. The terms and conditions of the respective Option
Agreements need not be identical. Subject to the consent of the Participant, the Committee may, in its sole discretion, amend an outstanding Option Agreement from time to time in any manner that is not inconsistent with the provisions of the Plan
(including, without limitation, an amendment that accelerates the time at which the Option, or a portion thereof, may be exercisable). 
 (e) Option Price and Payment. The price at which a share of Common Stock may be purchased upon exercise of an Option shall be determined by the Committee but, subject to adjustment as
provided in Paragraph XII, such purchase price shall not be less than the Fair Market Value of a share of Common Stock on the date such Option is granted. The Option or portion thereof may be exercised by delivery of an irrevocable notice of
exercise to the Company, as specified by the Committee. The purchase price of the Option or portion thereof shall be paid in full in the manner prescribed by the Committee. Separate stock certificates shall be issued by the Company

  
 - 8 -

 
for those shares acquired pursuant to the exercise of an Incentive Stock Option and for those shares acquired pursuant to the exercise of any Option that does not constitute an Incentive Stock
Option. 
 (f) Restrictions on Repricing of Options. Except as provided in Paragraph XII, the
Committee may not, without approval of the stockholders of the Company, amend any outstanding Option Agreement to lower the option price (or cancel and replace any outstanding Option Agreement with Option Agreements having a lower option price).

 (g) Stockholder Rights and Privileges. The Participant shall be entitled to all the privileges
and rights of a stockholder only with respect to such shares of Common Stock as have been purchased under the Option and for which certificates of stock have been registered in the Participant’s name. 

(h) Options and Rights in Substitution for Options Granted by Other Employers. Options and Stock
Appreciation Rights may be granted under the Plan from time to time in substitution for options and such rights held by individuals providing services to corporations or other entities who become employees, Consultants, or Directors as a result of a
merger or consolidation or other business transaction with the Company or any Affiliate. 
 VIII. RESTRICTED STOCK AWARDS

 (a) Forfeiture Restrictions to be Established by the Committee. Shares of Common Stock that
are the subject of a Restricted Stock Award shall be subject to restrictions on disposition by the Participant and an obligation of the Participant to forfeit and surrender the shares to the Company under certain circumstances (the
“Forfeiture Restrictions”). The Forfeiture Restrictions shall be determined by the Committee in its sole discretion, and the Committee may provide that the Forfeiture Restrictions shall lapse upon (i) the attainment of
one or more Performance Measures, (ii) the Participant’s continued employment with the Company or its Affiliate or continued service as a Consultant or Director for a specified period of time, (iii) the occurrence of any event or the
satisfaction of any other condition specified by the Committee in its sole discretion (including, without limitation, a Change in Control), or (iv) a combination of any of the foregoing. Each Restricted Stock Award may have different Forfeiture
Restrictions, in the discretion of the Committee. 
 (b) Other Terms and Conditions. Unless
provided otherwise in a Restricted Stock Agreement, the Participant shall have the right to receive dividends with respect to Common Stock subject to a Restricted Stock Award, to vote Common Stock subject thereto, and to enjoy all other stockholder
rights, except that (i) the Participant shall not be entitled to delivery of the stock certificate until the Forfeiture Restrictions have expired, (ii) the Company shall retain custody of the stock until the Forfeiture Restrictions have
expired, (iii) the Participant may not sell, transfer, pledge, exchange, hypothecate, or otherwise dispose of the stock until the Forfeiture Restrictions have expired, (iv) a breach of the terms and conditions established by the Committee
pursuant 

  
 - 9 -

 
to the Restricted Stock Agreement shall cause a forfeiture of the Restricted Stock Award, and (v) with respect to the payment of any dividend with respect to shares of Common Stock subject
to a Restricted Stock Award directly to the Participant, each such dividend shall be paid no later than the end of the calendar year in which the dividends are paid to stockholders of such class of shares or, if later, the fifteenth day of the third
month following the date the dividends are paid to stockholders of such class of shares. At the time of such Award, the Committee may, in its sole discretion, prescribe additional terms, conditions, or restrictions relating to Restricted Stock
Awards, including, but not limited to, rules pertaining to the termination of employment or service as a Consultant or Director (by retirement, disability, death, or otherwise) of a Participant prior to expiration of the Forfeitures Restrictions.
Such additional terms, conditions, or restrictions shall be set forth in a Restricted Stock Agreement made in conjunction with the Award. 
 (c) Payment for Restricted Stock. The Committee shall determine the amount and form of any payment for Common Stock received pursuant to a Restricted Stock Award, provided that in the
absence of such a determination, a Participant shall not be required to make any payment for Common Stock received pursuant to a Restricted Stock Award, except to the extent otherwise required by law. 

(d) Committee’s Discretion to Accelerate Vesting of Restricted Stock Awards. The Committee may, in its
discretion and as of a date determined by the Committee, fully vest any or all Common Stock awarded to a Participant pursuant to a Restricted Stock Award and, upon such vesting, all Forfeiture Restrictions applicable to such Restricted Stock Award
shall terminate as of such date. Any action by the Committee pursuant to this Subparagraph may vary among individual Participants and may vary among the Restricted Stock Awards held by any individual Participant. Notwithstanding the preceding
provisions of this Subparagraph, except in connection with a Corporate Change or Change in Control, the Committee may not take any action described in this Subparagraph with respect to a Restricted Stock Award that has been granted to a
“covered employee” (within the meaning of Treasury regulation section 1.162-27(c)(2)) if such Award has been designed to meet the exception for performance-based compensation under section 162(m) of the Code. 

(e) Restricted Stock Agreements. At the time any Award is made under this Paragraph VIII, the Company and
the Participant shall enter into a Restricted Stock Agreement setting forth each of the matters contemplated hereby and such other matters as the Committee may determine to be appropriate. The terms and provisions of the respective Restricted Stock
Agreements need not be identical. Subject to the consent of the Participant, the Committee may, in its sole discretion, amend an outstanding Restricted Stock Agreement from time to time in any manner that is not inconsistent with the provisions of
the Plan. 
 IX. PERFORMANCE AWARDS 

(a) Performance Period. The Committee shall establish, with respect to and at the time of each Performance
Award, the number of shares of Common Stock subject to, or the maximum value of, the Performance Award and the performance period over which the performance applicable to the Performance Award shall be measured. 

  
 - 10 -

 (b) Performance Measures. A Performance Award shall be awarded
to a Participant contingent upon future performance of the Company or any Affiliate, division, or department thereof under a Performance Measure during the performance period. From and after the date upon which the Company becomes a “publicly
held corporation” (as defined in section 162(m) of the Code and applicable interpretative authority thereunder), the Committee shall establish the Performance Measures applicable to such performance either (i) prior to the beginning of the
performance period or (ii) within 90 days after the beginning of the performance period if the outcome of the performance targets is substantially uncertain at the time such targets are established, but not later than the date that 25% of the
performance period has elapsed. The Committee, in its sole discretion, may provide for an adjustable Performance Award value based upon the level of achievement of Performance Measures. 

(c) Awards Criteria. In determining the value of Performance Awards, the Committee shall take into account a
Participant’s responsibility level, performance, potential, other Awards, and such other considerations as it deems appropriate. The Committee, in its sole discretion, may provide for a reduction in the value of a Participant’s Performance
Award during the performance period. 
 (d) Payment. Following the end of the performance period,
the holder of a Performance Award shall be entitled to receive payment of an amount not exceeding the number of shares of Common Stock subject to, or the maximum value of, the Performance Award, based on the achievement of the Performance Measures
for such performance period, as determined and certified in writing by the Committee. Payment of a Performance Award may be made in cash, Common Stock, or a combination thereof, as determined by the Committee. Payment shall be made in a lump sum or
in installments as prescribed by the Committee. If a Performance Award covering shares of Common Stock is to be paid in cash, such payment shall be based on the Fair Market Value of the Common Stock on the payment date or such other date as may be
specified by the Committee in the Performance Award Agreement. A Participant shall not be entitled to the privileges and rights of a stockholder with respect to a Performance Award covering shares of Common Stock until payment has been determined by
the Committee and such shares have been delivered to the Participant. 
 (e) Termination of Award.
A Performance Award shall terminate if the Participant does not remain continuously in the employ of the Company and its Affiliates or does not continue to perform services as a Consultant or a Director for the Company and its Affiliates at all
times during the applicable performance period through the payment date, except as may be determined by the Committee (including, without limitation, a termination of employment or services on or after a Change in Control). 

(f) Performance Award Agreements. At the time any Award is made under this Paragraph IX, the Company and the
Participant shall enter into a Performance Award Agreement setting forth each of the matters contemplated hereby and such additional matters as the Committee may determine to be appropriate. The terms and provisions of the respective Performance
Award Agreements need not be identical. 

  
 - 11 -

 X. PHANTOM STOCK AWARDS 

(a) Phantom Stock Awards. Phantom Stock Awards are rights to receive shares of Common Stock (or the Fair
Market Value thereof), or rights to receive an amount equal to any appreciation or increase in the Fair Market Value of Common Stock over a specified period of time, which vest over a period of time as established by the Committee, without
satisfaction of any performance criteria or objectives. The Committee may, in its discretion, require payment or other conditions of the Participant respecting any Phantom Stock Award. A Phantom Stock Award may include, without limitation, a Stock
Appreciation Right that is granted independently of an Option; provided, however, that the exercise price per share of Common Stock subject to the Stock Appreciation Right shall be (i) determined by the Committee but, subject to adjustment as
provided in Paragraph XII, such exercise price shall not be less than the Fair Market Value of a share of Common Stock on the date such Stock Appreciation Right is granted, and (ii) subject to the restrictions on repricings described in
Paragraph VII(f) in the same manner as applies to Options. 
 (b) Award Period. The Committee shall
establish, with respect to and at the time of each Phantom Stock Award, a period over which the Award shall vest with respect to the Participant. 
 (c) Awards Criteria. In determining the value of Phantom Stock Awards, the Committee shall take into account a Participant’s responsibility level, performance, potential, other Awards,
and such other considerations as it deems appropriate. 
 (d) Payment. Following the end of the
vesting period for a Phantom Stock Award (or at such other time as the applicable Phantom Stock Award Agreement may provide), the holder of a Phantom Stock Award shall be entitled to receive payment of an amount, not exceeding the maximum value of
the Phantom Stock Award, based on the then vested value of the Award. Payment of a Phantom Stock Award may be made in cash, Common Stock, or a combination thereof as determined by the Committee. Payment shall be made in a lump sum or in installments
as prescribed by the Committee. Any payment to be made in cash shall be based on the Fair Market Value of the Common Stock on the payment date or such other date as may be specified by the Committee in the Phantom Stock Award Agreement. Cash
dividend equivalents may be paid during or after the vesting period with respect to a Phantom Stock Award, as determined by the Committee. A Participant shall not be entitled to the privileges and rights of a stockholder with respect to a Phantom
Stock Award until the shares of Common Stock have been delivered to the Participant. 
 (e) Termination of
Award. A Phantom Stock Award shall terminate if the Participant does not remain continuously in the employ of the Company and its Affiliates or does not continue to perform services as a Consultant or a Director for the Company and its
Affiliates at all times during the applicable vesting period, except as may be otherwise determined by the Committee (including, without limitation, a termination of employment or services on or after a Change in Control). 

  
 - 12 -

 (f) Phantom Stock Award Agreements. At the time any Award is
made under this Paragraph X, the Company and the Participant shall enter into a Phantom Stock Award Agreement setting forth each of the matters contemplated hereby and such additional matters as the Committee may determine to be appropriate. The
terms and provisions of the respective Phantom Stock Award Agreements need not be identical. 
 XI. BONUS STOCK AWARDS

 Each Bonus Stock Award granted to a Participant shall constitute a transfer of unrestricted shares of Common Stock on
such terms and conditions as the Committee shall determine. Bonus Stock Awards shall be made in shares of Common Stock and need not be subject to performance criteria or objectives or to forfeiture. The purchase price, if any, for shares of Common
Stock issued in connection with a Bonus Stock Award shall be determined by the Committee in its sole discretion. 
 XII.
RECAPITALIZATION OR REORGANIZATION 
 (a) No Effect on Right or Power. The existence of the
Plan and the Awards granted hereunder shall not affect in any way the right or power of the Board or the stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization, or other change in the Company’s or any
Affiliate’s capital structure or its business, any merger or consolidation of the Company or any Affiliate, any issue of debt or equity securities ahead of or affecting Common Stock or the rights thereof, the dissolution or liquidation of the
Company or any Affiliate, any sale, lease, exchange, or other disposition of all or any part of its assets or business, or any other corporate act or proceeding. 

(b) Subdivision or Consolidation of Shares; Stock Dividends. The shares with respect to which Awards may be
granted are shares of Common Stock as presently constituted, but if, and whenever, prior to the expiration of an Award theretofore granted, the Company shall effect a subdivision or consolidation of shares of Common Stock or the payment of a stock
dividend on Common Stock without receipt of consideration by the Company, the number of shares of Common Stock with respect to which such Award may thereafter be exercised or satisfied, as applicable, (i) in the event of an increase in the
number of outstanding shares, shall be proportionately increased, and the purchase price per share shall be proportionately reduced, and (ii) in the event of a reduction in the number of outstanding shares, shall be proportionately reduced, and
the purchase price per share shall be proportionately increased. Any fractional share resulting from such adjustment shall be rounded up to the next whole share. 

(c) Recapitalizations and Corporate Changes. If the Company recapitalizes, reclassifies its capital stock,
or otherwise changes its capital structure (a “recapitalization”), the number and class of shares of Common Stock or other property covered by an Award theretofore granted and the purchase price of Common Stock or

  
 - 13 -

 
other consideration subject to such Award shall be adjusted so that such Award shall thereafter cover the number and class of shares of stock and securities to which the Participant would have
been entitled pursuant to the terms of the recapitalization if, immediately prior to the recapitalization, the Participant had been the holder of record of the number of shares of Common Stock then covered by such Award. If (i) the Company
shall not be the surviving entity in any merger, consolidation or reorganization (or survives only as a subsidiary of an entity), (ii) the Company sells, leases, or exchanges or agrees to sell, lease, or exchange all or substantially all of its
assets to any other person or entity, (iii) the Company is to be dissolved and liquidated, (iv) any person or entity, including a “group” as contemplated by section 13(d)(3) of the Exchange Act, acquires or gains ownership or
control (including, without limitation, the power to vote) of more than 50% of the outstanding shares of the Company’s voting stock (based upon voting power), or (v) as a result of or in connection with a contested election of Directors,
the persons who were Directors of the Company before such election shall cease to constitute a majority of the Board (each such event is referred to herein as a “Corporate Change”), no later than (x) 10 days after the
approval by the stockholders of the Company of such merger, consolidation, reorganization, sale, lease, or exchange of assets or dissolution and liquidation or such election of Directors or (y) 30 days after a Corporate Change of the type
described in clause (iv), the Committee, acting in its sole discretion without the consent or approval of any Participant, shall effect one or more of the following alternatives in an equitable and appropriate manner to prevent dilution or
enlargement of the benefits or potential benefits intended to be made available under the Plan, which alternatives may vary among individual Participants and which may vary among Options or Stock Appreciation Rights held by any individual
Participant: (1) accelerate the time at which Options or Stock Appreciation Rights then outstanding may be exercised so that such Awards may be exercised in full for a limited period of time on or before a specified date (before or after such
Corporate Change) fixed by the Committee, after which specified date all such unexercised Awards and all rights of Participants thereunder shall terminate, (2) require the mandatory surrender to the Company by all or selected Participants of
some or all of the outstanding Options or Stock Appreciation Rights held by such Participants (irrespective of whether such Awards are then exercisable under the provisions of the Plan) as of a date, before or after such Corporate Change, specified
by the Committee, in which event the Committee shall thereupon cancel such Awards and the Company shall pay (or cause to be paid) to each Participant an amount of cash per share equal to the excess, if any, of the amount calculated in Subparagraph
(d) below (the “Change of Control Value”) of the shares subject to such Awards over the exercise price(s) under such Awards for such shares, or (3) make such adjustments to Options or Stock Appreciation Rights then
outstanding as the Committee deems appropriate to reflect such Corporate Change and to prevent the dilution or enlargement of rights (provided, however, that the Committee may determine in its sole discretion that no adjustment is necessary to such
Awards then outstanding), including, without limitation, adjusting such an Award to provide that the number and class of shares of Common Stock covered by such Award shall be adjusted so that such Award shall thereafter cover securities of the
surviving or acquiring corporation or other property (including, without limitation, cash) as determined by the Committee in its sole discretion. 

  
 - 14 -

 (d) Change of Control Value. For the purposes of clause
(2) in Subparagraph (c) above, the “Change of Control Value” shall equal the amount determined in the following clause (i), (ii) or (iii), whichever is applicable: (i) the per share price offered to
stockholders of the Company in any such merger, consolidation, reorganization, sale of assets or dissolution and liquidation transaction, (ii) the price per share offered to stockholders of the Company in any tender offer or exchange offer
whereby a Corporate Change takes place, or (iii) if such Corporate Change occurs other than pursuant to a tender or exchange offer, the fair market value per share of the shares into which such Options or Stock Appreciation Rights being
surrendered are exercisable, as determined by the Committee as of the date determined by the Committee to be the date of cancellation and surrender of such Awards. In the event that the consideration offered to stockholders of the Company in any
transaction described in this Subparagraph (d) or Subparagraph (c) above consists of anything other than cash, the Committee shall determine the fair cash equivalent of the portion of the consideration offered which is other than cash.

 (e) Other Changes in the Common Stock. In the event of changes in the outstanding Common Stock
by reason of recapitalizations, reorganizations, mergers, consolidations, combinations, split-ups, split-offs, spin-offs, exchanges, or other relevant changes in capitalization or distributions (other than ordinary dividends) to the holders of
Common Stock occurring after the date of the grant of any Award and not otherwise provided for by this Paragraph XII, such Award and any agreement evidencing such Award shall be subject to adjustment by the Committee at its sole discretion as to the
number and price of shares of Common Stock or other consideration subject to such Award in an equitable and appropriate manner to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under such Award.
In the event of any such change in the outstanding Common Stock or distribution to the holders of Common Stock, or upon the occurrence of any other event described in this Paragraph XII, the aggregate maximum number of shares available under the
Plan, the aggregate maximum number of shares that may be issued under the Plan through Incentive Stock Options, and the maximum number of shares that may be subject to Awards granted to any one individual shall be appropriately adjusted to the
extent, if any, determined by the Committee, whose determination shall be conclusive. 
 (f) Stockholder
Action. Any adjustment provided for in the above Subparagraphs shall be subject to any required stockholder action. 
 (g) No Adjustments Unless Otherwise Provided. Except as hereinbefore expressly provided, the issuance by the Company of shares of stock of any class or securities convertible into shares of
stock of any class, for 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,
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 of Common Stock subject to Awards theretofore granted or the purchase price per share, if
applicable. 

  
 - 15 -

 XIII. AMENDMENT AND TERMINATION OF THE PLAN 

The Board in its discretion may terminate the Plan at any time with respect to any shares of Common Stock for which Awards have not
theretofore been granted. The Board shall have the right to alter or amend the Plan or any part thereof from time to time; provided that no change in the Plan may be made that would materially impair the rights of a Participant with respect to an
Award theretofore granted without the consent of the Participant, and provided, further, that the Board may not, without approval of the stockholders of the Company,(a) amend the Plan to increase the aggregate maximum number of shares that may be
issued under the Plan, increase the aggregate maximum number of shares that may be issued under the Plan through Incentive Stock Options, or change the class of individuals eligible to receive Awards under the Plan, or (b) amend or delete
Paragraph VII(f). 
 XIV. MISCELLANEOUS 

(a) No Right To An Award. Neither the adoption of the Plan nor any action of the Board or of the Committee
shall be deemed to give any individual any right to be granted an Award, or any other rights hereunder except as may be evidenced by an Award agreement duly executed on behalf of the Company, and then only to the extent and on the terms and
conditions expressly set forth therein. 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 funds or assets to assure the performance of its obligations under
any Award. 
 (b) No Employment/Membership Rights Conferred. Nothing contained in the Plan shall
(i) confer upon any employee or Consultant any right with respect to continuation of employment or of a consulting or advisory relationship with the Company or any Affiliate or (ii) interfere in any way with the right of the Company or any
Affiliate to terminate his or her employment or consulting or advisory relationship at any time. Nothing contained in the Plan shall confer upon any Director any right with respect to continuation of membership on the Board. 

(c) Other Laws; Withholding. The Company shall not be obligated to issue any Common Stock pursuant to any
Award granted under the Plan at any time when the shares covered by such Award have not been registered under the Securities Act of 1933, as amended, and such other state and federal laws, rules, and regulations as the Company or the Committee deems
applicable and, in the opinion of legal counsel for the Company, there is no exemption from the registration requirements of such laws, rules, and regulations available for the issuance and sale of such shares. No fractional shares of Common Stock
shall be delivered, nor shall any cash in lieu of fractional shares be paid. The Company shall have the right to deduct in connection with all Awards any taxes required by law to be withheld and to require any payments required to enable it to
satisfy its withholding obligations. 
 (d) No Restriction on Corporate Action. Nothing contained
in the Plan shall be construed to prevent the Company or any Affiliate from taking any action which is deemed by the Company or such Affiliate to be appropriate or in its best interest, 

  
 - 16 -

 
whether or not such action would have an adverse effect on the Plan or any Award made under the Plan. No Participant, beneficiary or other person shall have any claim against the Company or any
Affiliate as a result of any such action. 
 (e) Restrictions on Transfer. An Award (other than an
Incentive Stock Option, which shall be subject to the transfer restrictions set forth in Paragraph VII(c)) shall not be transferable otherwise than (i) by will or the laws of descent and distribution, (ii) pursuant to a qualified domestic
relations order as defined by the Code or Title I of the Employee Retirement Income Security Act of 1974, as amended, or the rules thereunder, or (iii) with the consent of the Committee. 

(f) Delayed Payment Restriction. Notwithstanding any provision in the Plan or an Award agreement to the
contrary, if any payment or benefit provided for under an Award would be subject to additional taxes and interest under section 409A of the Code if the Participant’s receipt of such payment or benefit is not delayed in accordance with the
requirements of section 409A(a)(2)(B)(i) of the Code, then such payment or benefit shall not be provided to the Participant (or the Participant’s estate, if applicable) until the earlier of (i) the date of the Participant’s death or
(ii) the date that is six months after the date of the Participant’s separation from service with the Company. 
 (g) Governing Law. The Plan shall be governed by, and construed in accordance with, the laws of the State of Delaware, without regard to conflicts of laws principles thereof. 

  
 - 17 -

 EXHIBIT A 
 FORUM ENERGY TECHNOLOGIES, INC. 
 2010 STOCK INCENTIVE PLAN

 Except as otherwise provided in an Award agreement, the definitions set forth in this Exhibit A shall also apply in the
case of any provision of the Plan or any Award agreement that includes the term “Change in Control:” 

Acquiring Person means any individual, entity or group (within the meaning of section 13(d)(3) or 14(d)(2) of the Exchange Act)
other than the Initial Stockholders. 
 Change in Control means, as applicable: 

(i) Prior to the common stock of the Company becoming Public Stock (including any transaction pursuant to which the common stock of the
Company first becomes Public Stock), a “Change in Control” of the Company means, in one transaction or a series of related transactions, (A) a Corporate Transaction or a sale of capital stock of the Company by stockholders of the
Company (other than in connection with an Initial Public Offering) with the result immediately after such Corporate Transaction or sale that a single Acquiring Person, together with its affiliates, owns, directly or indirectly, either a greater
number of shares of common stock of the Company (calculated on a fully-diluted basis assuming that all shares of capital stock of the Company that are convertible into common stock of the Company at the then applicable conversion ratio are so
converted) than the Initial Stockholders then own or, in the context of a Corporate Transaction in which the Company is not the surviving entity, more voting stock generally entitled to elect directors of such surviving entity (or in the case of a
triangular merger, of the parent entity of such surviving entity) than the Initial Stockholders then own, or (B) the Company sells, leases or exchanges all or substantially all of its assets to any Acquiring Person or the dissolution or
liquidation of the Company other than, in either case, pursuant to a transaction that complies with clause (ii)(c)(1) of this definition. 
 (ii) After the common stock of the Company becomes Public Stock, a “Change in Control” of the Company means: 

(a) The acquisition by any Acquiring Person of beneficial ownership (within the meaning of Rule 13d-3 promulgated under
the Exchange Act) of fifty percent (50%) or more of either (1) the then outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (2) the combined voting power of the then
outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection (a) any
acquisition by any Acquiring Person pursuant to a transaction which complies with clause (ii)(c)(1) of this definition shall not constitute a Change in Control; or 

(b) Individuals, who, immediately following the time when the common stock of the Company becomes Public Stock, constitute
the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the time when the common stock of the
Company becomes Public Stock whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors 

  
 A-1

 EXHIBIT A 

FORUM ENERGY TECHNOLOGIES, INC. 
 2010 STOCK INCENTIVE PLAN 
  

 
then comprising the Incumbent Board shall be considered for purposes of this definition as though such individual was a member of the Incumbent Board, but excluding, for these purposes, any such
individual whose initial assumption of office as a director occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or
on behalf of an Acquiring Person other than the Board; or 
 (c) The consummation of a Corporate Transaction
unless, following such Corporate Transaction, (1) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities
immediately prior to such Corporate Transaction beneficially own, directly or indirectly, more than fifty percent (50%) of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors, as the case may be, of the Company (if it be the ultimate parent entity following such Corporate Transaction) or the corporation resulting from such Corporate Transaction (or the
ultimate parent entity which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries), and (2) at least a majority of the members of the board
of directors of the ultimate parent entity resulting from such Corporate Transaction were members of the Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Corporate Transaction. For
purposes of the foregoing sentence, only (A) shares of common stock and voting securities of the Company, assuming the Company is the ultimate parent entity following such Corporate Transaction, held by a beneficial owner immediately prior to
such Corporate Transaction and any additional shares of common stock and voting securities of the Company issuable to such beneficial owner in connection with such Corporate Transaction in respect of the shares of common stock and voting securities
of the Company held by such beneficial owner immediately prior to such Corporate Transaction, or (B) shares of common stock and voting securities of the ultimate parent entity following such Corporate Transaction, assuming the Company is not
the ultimate parent entity following such Corporate Transaction, issuable to a beneficial owner in respect of the shares of common stock and voting securities of the Company held by such beneficial owner immediately prior to such Corporate
Transaction, in either case shall be included in determining whether or not the fifty percent (50%) ownership test in this subsection (c) has been satisfied. 
 Corporate Transaction means a reorganization, merger or consolidation of the Company, any of its subsidiaries or sale, lease or other disposition of all or substantially all of the assets of the
Company and its subsidiaries, taken as a whole (other than to an entity wholly owned, directly or indirectly, by the Company) or the liquidation or dissolution of the Company. 
 Exchange Act means the Securities Exchange Act of 1934, as amended. 

  
 A-2

 EXHIBIT A 

FORUM ENERGY TECHNOLOGIES, INC. 
 2010 STOCK INCENTIVE PLAN 
  

 Initial Public Offering means the initial underwritten public offering and sale
of Common Stock on a firm commitment basis after which the Common Stock is listed for trading on a national securities exchange registered under section 6(a) of the Exchange Act. 

Initial Stockholders means the stockholders of the Company as of the date of the Stockholders Agreement and their respective
affiliates and Persons who are permitted transferees in accordance with Section 2.2 of the Stockholders Agreement. 

Person means any natural person, limited liability company, corporation, limited partnership, general partnership, joint stock
company, joint venture, association, company, trust, bank trust company, land trust, business trust, or other organization, whether or not a legal entity, and any government or agency or political subdivision thereof. 

Public Stock means shares of capital stock (including depositary receipts or depositary shares related to common stock or similar
ordinary shares) of any Person that are registered under section 12 of the Exchange Act and listed for trading on a national securities exchange registered under section 6(a) of the Exchange Act. 

Stockholders Agreement means that certain Stockholders’ Agreement dated as of
                        , among the Company and certain of its stockholders, as the same may be amended or restated from
time to time. 

  
 A-3

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