Document:

EX-10.4

 Exhibit 10.4 

ONE STOP SYSTEMS, INC. 

2015 STOCK OPTION PLAN 
  

November 6, 2015 
  

 

 TABLE OF CONTENTS 

 

					
	 1.     PURPOSES OF
THE PLAN
	  	 	1	 
	 2.     DEFINITIONS
	  	 	1	 
	 3.     STOCK SUBJECT
TO THE PLAN
	  	 	4	 
	 3.1       Maximum Number of Shares
	  	 	4	 
	 3.2       Issued Shares Only
	  	 	4	 
	 4.     ADMINISTRATION OF
THE PLAN
	  	 	5	 
	 4.1       Plan Administrator.
	  	 	5	 
	 4.2       Powers of the Administrator
	  	 	5	 
	 4.3       Limitation of Liability
	  	 	6	 
	 5.     ELIGIBILITY
	  	 	6	 
	 6.     GENERAL TERMS
AND CONDITIONS OF AWARDS
	  	 	6	 
	 6.1       Type of Awards
	  	 	6	 
	 6.2       Conditions of Award
	  	 	6	 
	 6.3       Acquisitions and Other
Transactions
	  	 	7	 
	 6.4       Option Exchange Programs
	  	 	7	 
	 6.5       Separate Programs
	  	 	7	 
	 6.6       Time of Granting Awards
	  	 	7	 
	 7.     TERMS AND
CONDITIONS OF OPTIONS
	  	 	7	 
	 7.1       Designation of Option
	  	 	7	 
	 7.2       Term of Option
	  	 	7	 
	 7.3       Transferability of Options
	  	 	7	 
	 7.4       Exercise Price
	  	 	8	 
	 7.5       Exercise of Option
	  	 	8	 
	 8.     CONSIDERATION AND
TAXES
	  	 	10	 
	 8.1       Consideration
	  	 	10	 
	 8.2       Taxes
	  	 	10	 
	 9.     CONDITIONS ON
ISSUANCE OF AWARDS OR SHARES
	  	 	11	 
	 10.   ADJUSTMENTS ON
CHANGES IN CAPITALIZATION OR CORPORATE TRANSACTION
	  	 	11	 
	 10.1     Adjustments on Changes in
Capitalization
	  	 	11	 
	 10.2     Termination of Option in Event of Corporate
Transaction
	  	 	12	 
	 10.3     Acceleration of Option in Event of Corporate
Transaction
	  	 	13	 
	 11.   EFFECTIVE DATE
AND TERM OF PLAN
	  	 	13	 
	 12.   AMENDMENT, SUSPENSION,
OR TERMINATION OF THE PLAN
	  	 	13	 
	 13.   RESERVATION OF
SHARES
	  	 	14	 
	 14.   NO EFFECT ON
TERMS OF EMPLOYMENT OR CONSULTING RELATIONSHIP
	  	 	14	 
	 15.   NOT AN ERISA
PLAN OR DEFERRED COMPENSATION PLAN
	  	 	14	 
	 16.   SHAREHOLDER APPROVAL
	  	 	14	 
	 17.   TAX TREATMENT
	  	 	14	 
	 18.   INFORMATION TO
GRANTEE
	  	 	15	 
	 EXHIBIT A: PLAN HISTORY
	  	 	16	 

  

 ONE STOP SYSTEMS, INC. 

2015 STOCK OPTION PLAN 
  

 
  

1.         PURPOSES OF THE
PLAN. The purposes of this Stock Option Plan are to attract and retain the best available personnel; to provide additional incentive to Employees, Directors, and Consultants; and to promote the success of the
Company’s business. Exhibit A lists the dates the Plan and any amendments are adopted and approved.  

2.         DEFINITIONS. As used herein, the following definitions will apply: 

“Administrator” means the Board of Directors or any committee appointed by the Board to administer the Plan.

 “Applicable Laws” means the legal requirements relating to the administration of stock option plans, if
any, under applicable provisions of federal and state securities laws, the corporate laws of the state of the Company’s incorporation, the Code, the rules of any applicable stock exchange or national market system, and the rules of any foreign
jurisdiction applicable to Options granted to residents of that jurisdiction. 
 “Board” means the Board of
Directors of the Company. 
 “Cause” will have the same meaning as such term is expressly defined in the
then-effective written agreement between the Grantee and the Company or a Related Entity with respect to the termination by the Company or a Related Entity of the Grantee’s Continuous Service (unless a different definition is specified in the
Option Agreement). In the absence of such a then-effective written agreement or definition, “Cause” will mean such termination is based on, in the determination of the Administrator, the Grantee’s: (a) refusal or failure to act
in accordance with any specific, lawful direction or order of the Company or Grantee’s employer; (b) performance of any act or failure to perform any act in bad faith and to the material detriment of the Company or Grantee’s employer;
(c) dishonesty, intentional misconduct, or material breach of any agreement with the Company or Grantee’s employer; or (d) commission of embezzlement, misappropriation of trade secrets, or any felony involving dishonesty, breach of
trust, or physical or emotional harm to any person. At least fourteen (14) calendar days prior to the termination of the Grantee’s Continuous Service under (a) above, the Company will provide the Grantee with notice of the
Company’s or such Related Entity’s intent to terminate, the reason therefor, and an opportunity for the Grantee to cure such defects in the Grantee’s service to the Company’s or such Related Entity’s satisfaction. During
this fourteen (14)-day (or longer) period, no Award issued to the Grantee under the Plan may be exercised. 

“Code” means the Internal Revenue Code of 1986, as amended, including the applicable regulations. 

“Common Stock” means the common stock of the Company. 

“Company” means One Stop Systems, Inc., a California corporation. 

 ONE STOP SYSTEMS, INC. 2015
STOCK OPTION PLAN 
  

 
  

 “Consultant” means any person (other than an Employee or a
Director, solely with respect to rendering services in such person’s capacity as a Director) who is engaged by the Company or any Related Entity to render services to the Company or such Related Entity as an independent contractor. 

“Continuous Service” means the provision of services to the Company or a Related Entity in any capacity of
Employee, Director, or Consultant is not interrupted or terminated. Continuous Service will not be considered interrupted in the case of (a) any approved leave of absence; (b) transfers among the Company and any Related Entity, in any
capacity of Employee, Director, or Consultant; (c) transfers to any successor to the Company’s business or assets in any Corporate Transaction or to any Parent, Subsidiary, or similar related entity of such successor, in any capacity of
Employee, Director, or Consultant, to the extent determined by the Administrator; or (d) any change in status as long as the individual remains in the service of the Company or a Related Entity in any capacity of Employee, Director, or
Consultant (except as otherwise provided in the Option Agreement). An approved leave of absence will include sick leave, military leave, or any other authorized personal leave. For purposes of Incentive Stock Options, no such leave may exceed ninety
(90) days, unless reemployment on expiration of such leave is guaranteed by statute or contract. The Administrator may, in its discretion, determine the transfer of a Grantee to an entity that does not qualify as a Related Entity will not
terminate the Grantee’s Continuous Service. 
 “Corporate Transaction” means any of the following
transactions to which the Company is a party: 
 (a)         merger or consolidation
in which the Company is not the surviving entity, except for a transaction the principal purpose of which is to change the state in which the Company is incorporated or to create a holding company that will be owned, directly or indirectly, by the
persons who held the securities immediately before such transaction; 
 (b)        
The sale, transfer, or other disposition of all or substantially all of the assets of the Company (including the capital stock of the Company’s subsidiary corporations) in connection with the complete liquidation or dissolution of the Company;

 (c)         Any reverse merger in which the Company is the surviving entity but
in which securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities are transferred to persons different from those who held such securities immediately before such merger, but
excluding any such transition if the Administrator determines such transaction will not be a Corporate Transaction; or 

(d)         Acquisition by any person or related group of persons (other than the
Company or by a Company-sponsored employee benefit plan) of beneficial ownership (within the meaning of SEC Rule 13d-3 under the Exchange Act, as defined below) of securities possessing more than fifty percent
(50%) of the total combined voting power of the Company’s outstanding securities, but excluding any such transaction if (i) such transaction is a debt or equity financing transaction approved by the Board, (ii) such transaction is a
public offering, or (iii) the Administrator determines such transaction will not be a Corporate Transaction. 

“Director” means a member of the Board or the board of directors of any Related Entity. 

  
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STOCK OPTION PLAN 
  

 
  

 “Disability” means a Grantee would qualify for benefit
payments under the long-term disability policy of the Company or the Related Entity to which the Grantee provides services regardless of whether the Grantee is covered by such policy; provided, however, if no such policy is in effect, Disability
will mean a Grantee is permanently unable to carry out the responsibilities and functions of the position held by the Grantee by reason of any medically determinable physical or mental impairment. A Grantee will not be considered to have incurred a
Disability unless he or she furnishes proof of such impairment sufficient to satisfy the Administrator in its discretion. 

“Employee” means any person, including an Officer or Director, who is an employee of the Company or any
Related Entity. The payment of a director’s fee by the Company or a Related Entity will not be sufficient to constitute “employment” by the Company. 

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

“Fair Market Value” means, as of any date, the value of Common Stock determined as follows: 

(a)         If there exists a public market for the Common Stock, the Fair Market
Value will be determined by the Administrator in accordance with applicable law and in a manner consistent with the requirements of Section 409A of the Code; or 

(b)         In the absence of an established market for the Common Stock of the type
described in (a) above, the Fair Market Value will be determined by the Administrator in good faith and in a manner consistent with Section 260.140.50 of Title 10 of the California Code of Regulations and with the requirements of
Section 409A of the Code. 
 “Grantee” means an Employee, Director, or Consultant who receives an
Option under the Plan. 
 “Incentive Stock Option” means an Option intended to qualify as an incentive
stock option within the meaning of Section 422 of the Code. 
 “Nonqualified Stock Option” means an
Option not intended to qualify as an Incentive Stock Option. 
 “Officer” means a person who is an officer
of the Company or a Related Entity within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 

“Option” means an option to purchase Shares granted under the Plan. 

“Option Agreement” means the written agreement evidencing the grant of an Option executed by the Company and
the Grantee, including any amendments thereto. 
 “Parent” means a “parent corporation,” whether
now or hereafter existing, as defined in Section 424(e) of the Code. 
 “Plan” means this One Stop
Systems, Inc. 2015 Stock Option Plan. 

  
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STOCK OPTION PLAN 
  

 
  

 “Post-Termination Exercise Period” means the applicable
period specified in the Option Agreement commencing on the date of termination of the Grantee’s Continuous Service. The applicable Post-Termination Exercise Period will depend on the reason for the termination of Continuous Service. 

“Registration Date” means the first to occur of: 

(a)         The closing of the first sale to the general public of (i) the Common
Stock or (ii) the same class of securities of a successor corporation (or its Parent) issued in a Corporate Transaction in exchange for or in substitution of the Common Stock, in accordance with a registration statement filed with and declared
effective by the Securities and Exchange Commission under the Securities Act of 1933, as amended; and 

(b)         In the event of a Corporate Transaction, the date of the consummation of
the Corporate Transaction if the same class of securities of the successor corporation (or its Parent) issuable in such Corporate Transaction will have been sold to the general public in accordance with a registration statement filed with and
declared effective by the Securities and Exchange Commission under the Securities Act of 1933, as amended, on or prior to the date of consummation of such Corporate Transaction. 

“Related Entity” means any Parent, any Subsidiary, or any business, corporation, partnership, limited
liability company, or other entity in which the Company, a Parent, or a Subsidiary holds a substantial ownership interest, directly or indirectly. 

“Share” means a share of the Common Stock. 

“Subsidiary” means a subsidiary corporation, whether now or hereafter existing, as defined in
Section 424(f) of the Code. 
 3.         STOCK SUBJECT
TO THE PLAN. 

3.1         Maximum Number of Shares. Subject to the provisions of
Subsection 11.1 below, the maximum aggregate number of Shares that may be issued in connection with all Options (including Incentive Stock Options) is one million five hundred thousand (1,500,000) Shares. The Shares may be authorized but unissued,
or reacquired Common Stock. 
 3.2         Issued Shares Only. Only
Shares actually issued under the Plan in connection with an Option will be counted against the maximum aggregate numbers above. Any Shares (covered by an Option) that are forfeited or canceled, expire, are surrendered, or otherwise become
unexercisable before the Shares have been issued under the Plan will be deemed not to have been issued for purposes of determining the maximum aggregate number of Shares that may be issued under the Plan, and such unissued Shares will become
available for future grant under the Plan. Shares that have been issued under the Plan will not be returned to the Plan and will not become available for future issuance under the Plan. 

  
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 4.         ADMINISTRATION OF
THE PLAN. 
 4.1       Plan
Administrator. With respect to grants of Options to Employees, Directors, or Consultants, the Plan will be administered by (a) the Board or (b) a committee or subcommittee designated by the Board, which committee will be
constituted in such a manner as to satisfy Applicable Laws and will consist of at least two individuals. Once appointed, the Administrator will continue to serve in its designated capacity until otherwise directed by the Board. Any action of the
Administrator with respect to the Plan will be final, conclusive, and binding on all persons, including the Company, any Related Entity, any Grantee, and any other person claiming any rights under the Plan. The express grant of any specific power to
the Administrator, a committee, or an Officer and the taking of any action by such Administrator, a committee, or an Officer will not be construed as limiting any power or authority of the Administrator or the Board.  

4.2       Powers of the Administrator. Subject to Applicable Laws and the
provisions of the Plan (including any other powers given to the Administrator hereunder), and except as otherwise provided by the Board, the Administrator will have the authority, in its sole discretion.  

(a)         To select the Employees, Directors, and Consultants to whom Options may
be granted from time to time hereunder; 
 (b)         To determine whether and to
what extent Options are granted hereunder; 
 (c)         To determine the number
of Shares or the amount of other consideration to be covered by each Option granted hereunder; 

(d)         To approve forms of Option Agreements for use under the Plan; 

(e)         To determine the terms and conditions of any Option granted hereunder;

 (f)         For Grantees in foreign jurisdictions only, to establish different
or additional terms, conditions, rules, or procedures to accommodate the applicable rules or laws of such jurisdictions and to afford Grantees favorable treatment under such rules or laws; provided, however, any such term, condition, rule, or
procedure that is inconsistent with the provisions of the Plan must be approved by the Board; 

(g)         To establish additional terms, conditions, rules, or procedures to
accommodate the terms of any Corporate Transaction, Option exchange program, Option deferral program, or other such program; provided, however, no Option will be subject to any such additional terms, conditions, rules, or procedures that are
inconsistent with the provisions of the Plan; 
 (h)         To amend the terms of
any outstanding Option granted under the Plan; provided, however, any amendment that would adversely affect the Grantee’s rights under an outstanding Option will not be made without the Grantee’s written consent, unless the Administrator
determines the amendment is necessary to comply with any Applicable Law or accounting standard or to avoid adverse accounting treatment; 

  
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 ONE STOP SYSTEMS, INC. 2015
STOCK OPTION PLAN 
  

 
  

 (i)         To define terms not
otherwise defined in the Plan and to construe and interpret the terms of the Plan and Options, including, without limitation, any notice of award or Option Agreement granted under the Plan; 

(j)         To prescribe, amend, and rescind rules and regulations relating to the
Plan and Options that are not inconsistent with the terms of the Plan; and 

(k)         To take such other action, not inconsistent with the terms of the Plan,
as the Administrator deems appropriate.  
 4.3       Limitation of
Liability. Each member of the Administrator, each member of the Board, and any Officer with authority to grant Options or administer the Plan in any way will be entitled to, in good faith, rely or act on any report or other information
furnished to him or her by any Officer, Employee, Director, or Consultant of the Company or any Related Entity, the Company’s accountants, or other professional retained by the Company to assist in the administration of the Plan. No member of
the Administrator or the Board, nor any Officer or Employee of the Company acting on behalf of the Administrator, will be personally liable for any action, determination, or interpretation taken or made in good faith with respect to the Plan, and
all members of the Administrator and the Board, and any Officer or Employee of the Company acting on their behalf, will, to the extent permitted by Applicable Law, be fully indemnified and protected by the Company with respect to any such action,
determination, or interpretation. 
 5.         ELIGIBILITY.
Options other than Incentive Stock Options may be granted to Employees, Directors, and Consultants. Incentive Stock Options may be granted only to Employees of the Company, a Parent, or a Subsidiary. Any Options issued to an Employee, Director,
or Consultant of a Related Entity must comply with the requirements of Section 409A of the Code. An Employee, Director, or Consultant who has been granted an Option may, if otherwise eligible, be granted additional Options. Options may be
granted to such Employees, Directors, or Consultants who are residing in foreign jurisdictions, as the Administrator may determine from time to time. 

6.         GENERAL TERMS AND CONDITIONS
OF AWARDS. 
 6.1       Type of Awards.
The Administrator is authorized under the Plan to award any type of arrangement to an Employee, Director, or Consultant that is not inconsistent with the provisions of the Plan and that by its terms involves or might involve the issuance of an
Option. 
 6.2       Conditions of Award. Subject to the terms of the Plan, the
Administrator will determine the provisions, terms, and conditions of each Option including, but not limited to, the Option vesting schedule, repurchase provisions, rights of first refusal, forfeiture provisions, form of payment (cash, Shares, or
other consideration) on settlement of the Option, payment contingencies, and satisfaction of any performance criteria. The Administrator may impose such restrictions, conditions, and limitations it determines are appropriate as to the timing and
manner of exercise, sale, or transfer of any Options or Shares issued under an Option, including, without limitation, restrictions under an insider trading policy, restrictions with respect to the use of a specific brokerage firm, restrictions
during any period the Administrator determines the prospectus for such Option may not contain all required information, restrictions requested by the underwriter engaged in a public offering of the Company’s securities, and clawback provisions.
To the extent any terms in 

  
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 ONE STOP SYSTEMS, INC. 2015
STOCK OPTION PLAN 
  

 
  

 an Option Agreement (or any other agreement relating to the Option) conflict with the terms
of this Plan, the terms of this Plan will control. 
 6.3       Acquisitions and Other
Transactions. The Administrator may issue Options under the Plan in settlement, assumption, or substitution for outstanding obligations to grant future awards in connection with the Company or a Related Entity acquiring another entity, an
interest in another entity, or an additional interest in a Related Entity whether by merger, stock purchase, asset purchase, or other form of transaction. 

6.4       Option Exchange Programs. The Administrator may establish one or more
programs under the Plan to permit selected Grantees to exchange an Option under the Plan for other types of Options under the Plan on such terms and conditions as determined by the Administrator from time to time. 

6.5       Separate Programs. The Administrator may establish one or more separate
programs under the Plan for the purpose of issuing particular forms of Options to one or more classes of Grantees on such terms and conditions as determined by the Administrator from time to time. 

6.6       Time of Granting Awards. The date of grant of an Option will for all
purposes be the date on which the Administrator makes the determination to grant such Option. Notice of the grant determination will be given to each Employee, Director, or Consultant to whom an Option is so granted within a reasonable time after
the date of such grant. 
 7.         TERMS AND CONDITIONS
OF OPTIONS. 
 7.1      
Designation of Option. An Option will be designated as either an Incentive Stock Option or a Nonqualified Stock Option. However, notwithstanding such designation, to the extent the aggregate Fair Market Value of Shares subject to Options
designated as Incentive Stock Options that become exercisable for the first time by a Grantee during any calendar year (under all plans of the Company or any Parent or Subsidiary) exceeds One Hundred Thousand Dollars ($100,000), such excess Options,
to the extent of the Shares covered thereby in excess of the foregoing limitation, will be treated as Nonqualified Stock Options. For this purpose, Incentive Stock Options will be taken into account in the order in which they were granted, and the
Fair Market Value of the Shares will be determined as of the grant date of the relevant Option. 

7.2       Term of Option. The term of each Option will be the term stated in the
Option Agreement; provided, however, the term will be no more than ten (10) years from the date of grant thereof. However, in the case of an Incentive Stock Option granted to a Grantee who, at the time the Option is granted, owns stock
representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Incentive Stock Option will be five (5) years from the date of grant thereof or such shorter term
as may be provided in the Option Agreement. 
 7.3       Transferability of
Options. Nonqualified Stock Options will be transferable by will, by the laws of descent and distribution, to a revocable trust, or (to the extent provided in the Option Agreement) in a manner consistent with Rule 701(b) under the Securities
Act or any successor rule. Incentive Stock Options may not be sold, pledged, assigned, hypothecated, 

  
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 transferred, or disposed of in any manner other than by will or by the laws of descent or
distribution and may be exercised, during the lifetime of the Grantee, only by the Grantee. 

7.4       Exercise Price. The exercise price for an Option will be as follows:

 (a)       In the case of an Incentive Stock Option: 

(i)       If granted to an Employee who at the time of the grant of such
Incentive Stock Option owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the per-Share exercise price will be not less
than one hundred ten percent (110%) of the Fair Market Value per Share on the date of grant; or 

(ii)       If granted to any Employee other than an Employee described in the
preceding paragraph, the per-Share exercise price will be not less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant. 

(b)       In the case of a Nonqualified Stock Option granted to any person, the per-Share exercise price will be not less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant. 

(c)       Notwithstanding the foregoing provisions of this Section 8, in the case of an
Option issued in accordance with Subsection 6.3 above, the exercise price for the Option will be determined in accordance with the principles of Sections 424(a) and 409A of the Code. 

7.5         Exercise of Option. 

(a)       Procedure for Exercise; Rights as a Shareholder. 

(i)       Any Option granted hereunder will be exercisable at such times and
under such conditions as specified in the Option Agreement or later authorized by the Administrator under the terms of the Plan. 

(ii)       An Option will be deemed to be exercised when written notice of such
exercise has been given to the Company in accordance with the terms of the Option Agreement by the person entitled to exercise the Option and full payment for the Shares with respect to which the Option is exercised, subject to the Grantee
satisfying all other terms and conditions in the Plan or the Option Agreement. Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company) of the stock certificate
evidencing such Shares, no right to vote or receive dividends or any other rights as a shareholder will exist with respect to Shares subject to an Option, notwithstanding the exercise of the Option. No adjustment will be made for a dividend or other
right for which the record date falls prior to the date the stock certificate is issued, except as provided in the Option Agreement or in Subsection 10.1 below. 

(b)       Exercise of Option Following Termination of Continuous Service. In the event
of termination of a Grantee’s Continuous Service (but not in the event of a Grantee’s change of status from Employee, Director, or Consultant to any other status of Employee, Director, or 

  
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 Consultant), such Grantee may exercise the Option to the extent the Grantee was entitled to
exercise it at the date of such termination, or to such other extent as may be determined by the Administrator, during the periods set forth below. To the extent the Grantee is not entitled to exercise the Option at the date of termination, or if
the Grantee does not exercise the Option to the extent so entitled within the applicable period, the Option will terminate. 

(i)       The Grantee’s Option Agreement may provide in the event of
termination of the Grantee’s Continuous Service for Cause, the Grantee’s right to exercise the Option will terminate concurrently with the termination of Grantee’s Continuous Service. The Grantee’s Option Agreement may specify a
definition of Cause applicable to such Option (which may or may not be the same as the definition of Cause in Section 2 above). 

(ii)       In the event of termination of a Grantee’s Continuous Service
as a result of the Grantee’s Disability, the Grantee may exercise the Option within six (6) months from the date of such termination or such longer Post-Termination Exercise Period as may be set forth in the Option Agreement or
subsequently approved by the Administrator in accordance with this Plan; provided, however, (A) in no event will the Option be exercisable after the expiration of the term as set forth in the Option Agreement and (B) if such Disability is
not a “disability” as such term is defined in Section 422(e)(3) of the Code, in the case of an Incentive Stock Option, such Incentive Stock Option will automatically convert to a Nonqualified Stock Option after three (3) months
following such termination. 
 (iii)       In the event of a termination of
the Grantee’s Continuous Service as a result of the Grantee’s death, or in the event of the death of the Grantee during the applicable Post-Termination Exercise Period, the Grantee’s estate or a person who acquired the right to
exercise the Option by bequest or inheritance may exercise the Option within six (6) months from the date of the Grantee’s death or such longer Post-Termination Exercise Period as may be set forth in the Option Agreement or subsequently
approved by the Administrator in accordance with this Plan, provided in no event will the Option be exercisable after the expiration of the term as set forth in the Option Agreement. 

(iv)       In the event of termination of a Grantee’s Continuous Service
as a result of the Grantee’s transfer by the Company to an entity that is not a Related Entity or as a result of Grantee’s employer ceasing to be a Related Entity, the Grantee may exercise the Option within thirty (30) days from the
date of such termination or such longer Post-Termination Exercise Period as may be set forth in the Option Agreement or subsequently approved by the Administrator in accordance with this Plan, provided in no event will the Option be exercisable
after the expiration of the term as set forth in the Option Agreement. 

(v)       In the event of termination of a Grantee’s Continuous Service
for any other reason, the Grantee may exercise the Option within thirty (30) days from the date of such termination or such longer Post-Termination Exercise Period as may be set forth in the Option Agreement or subsequently approved by the
Administrator in accordance with this Plan, provided in no event will the Option be exercisable after the expiration of the term as set forth in the Option Agreement. 

  
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 (c)       Change of Status. In the
event of a Grantee’s change of status from Employee, Director, or Consultant to any other status of Employee, Director, or Consultant, the Administrator will determine the extent to which the Option Agreement will continue to be exercisable and
the extent to which the Option will continue to vest. In the event of a Grantee’s change of status from Employee to Consultant, an Employee’s Incentive Stock Option will convert automatically to a Nonqualified Stock Option after three
(3) months following such change of status. 
 8.         CONSIDERATION
AND TAXES. 
 8.1      
Consideration. Subject to Applicable Laws, the consideration to be paid for the Shares to be issued on exercise of an Option, including the method of payment, will be determined by the Administrator (and, in the case of an Incentive Stock
Option, will be determined at the time of grant). In addition to any other types of consideration the Administrator may determine, the Administrator is authorized to accept as consideration for Shares issued under the Plan the following: 

(a)       Cash or check; 

(b)       Surrender of Shares, by delivery of a properly executed form of attestation of
ownership of Shares as the Administrator may require (or directing the Company to withhold Shares otherwise deliverable on exercise of the Option), which have a Fair Market Value on the date of exercise equal to the aggregate exercise price of the
Shares as to which the Option will be exercised; provided, however, no such exercise of the Option will be allowed if the exercise would result in an accounting compensation charge with respect to the Shares used to pay the exercise price, unless
otherwise specifically approved by the Administrator; 
 (c)       If the exercise occurs on
or after the Registration Date, payment through a broker-dealer sale and remittance procedure in accordance with which the Grantee (i) will provide written instructions to a Company-designated brokerage firm to effect the immediate sale of some
or all of the purchased Shares and remit to the Company, out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate exercise price payable for the purchased Shares and (ii) will provide written directives
to the Company to deliver the certificates for the purchased Shares directly to such brokerage firm in order to complete the sale transaction; or 

(d)       Any combination of the foregoing methods of payment. 

8.2       Taxes. No Shares will be delivered under the Plan to any Grantee or
other person until such Grantee or other person has made arrangements acceptable to the Administrator for the satisfaction of any foreign, federal, state, or local income and employment tax withholding obligations, including, without limitation,
obligations incident to the receipt of Shares or the disqualifying disposition of Shares received on exercise of an Incentive Stock Option. On exercise of an Option, the Company will withhold or collect from the Grantee an amount sufficient to
satisfy such tax obligations. If the Administrator allows the surrender or withholding of Shares to satisfy any tax withholding obligations, any such surrender or withholding will be limited to the extent necessary to avoid a minimum statutory
withholding (based on minimum statutory withholding rates for federal and state tax purposes, including payroll taxes) that could be imposed on the transaction, and in any case in which it would not result in an additional accounting compensation
charge to the 

  
 10 

 ONE STOP SYSTEMS, INC. 2015
STOCK OPTION PLAN 
  

 
  

 Company, tax obligations in excess of the minimum statutory withholding amounts as determined
by the Company. 
 9.         CONDITIONS ON ISSUANCE
OF OPTIONS OR SHARES. 

(a)         Notwithstanding any other provision in the Plan or any Option Agreement,
Options will not be granted and Shares will not be issued in accordance with any Option unless the issuance and delivery of such Option or Shares comply with all Applicable Laws and are approved by any regulatory body as may be required, and such
issuance and delivery will be further subject to the approval of counsel for the Company with respect to such compliance. The Company reserves the right to restrict the delivery of Shares pursuant to any Option until all requirements of this section
are satisfied as determined by the Company, in its sole discretion. 
 (b)        
As a condition to the issuance of Shares in accordance with any Option, the Company may require the person receiving such Shares to represent and warrant at the time of such issuance that the Shares are being purchased only for investment and
without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required by any Applicable Law. 

(c)         As a condition to the issuance of Shares in connection with any Option,
the Grantee agrees to comply with any applicable policies or procedures adopted by the Company regarding its stock (including, but not limited to, insider trader restrictions and pre-clearance procedures)
that, in the opinion of counsel for the Company, are necessary or desirable for compliance with any Applicable Law. 

(d)         As a condition to the grant of any Option, the Grantee agrees to forfeit
all Options granted to the Grantee and to repay any gain realized and any benefit obtained from all such Options under the following circumstances: (i) any circumstances requiring a clawback (or required to be covered in a clawback policy)
under any Applicable Law, or (ii) any circumstances set forth in a clawback or similar policy that is approved by the Administrator and applies generally to a class of Employees, Consultants, and/or Directors that includes the Grantee,
including any such policy that may be approved after the date the Option was granted or exercised. The manner of repaying an amount subject to this clawback provision will be set forth in the applicable policy or determined by the Administrator in
its sole discretion. 
 10.         ADJUSTMENTS ON CHANGES
IN CAPITALIZATION OR CORPORATE TRANSACTION. 

10.1         Adjustments on Changes in Capitalization. Subject to any
required action by the shareholders of the Company, the number of Shares that have been authorized for issuance under the Plan but as to which no Options have yet been granted or that have been returned to the Plan, any limits on the maximum number
of Shares that may be issued to any Grantee or as a specific type of Option, the number of Shares covered by each outstanding Option, the exercise price of each such outstanding Option, and any other terms the Administrator determines require
adjustment will be proportionately adjusted for (a) any increase or decrease in the number of issued Shares resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Shares, or similar transaction
affecting the Shares; (b) any other increase or decrease in the number of issued Shares effected without receipt of consideration by the Company; or, (c) as the Administrator may determine in its discretion, any other transaction with
respect to Common Stock to which Section 

  
 11 

 ONE STOP SYSTEMS, INC. 2015
STOCK OPTION PLAN 
  

 
  

 424(a) of the Code applies or a similar transaction; provided, however, conversion of any
convertible securities of the Company will not be deemed to have been “effected without receipt of consideration.” Such adjustment will be made by the Administrator, and its determination will be final, binding, and conclusive. Except as
the Administrator determines, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, will affect, and no adjustment by reason hereof will be made with respect to, the number or price
of Shares subject to an Option. 
 10.2       Termination of Option in Event of
Corporate Transaction. In the event of a Corporate Transaction, all Options will be subject to the agreement governing the Corporate Transaction, which need not treat Options identically and which will treat all Options in accordance with
one or more of the following approaches:  
 (a)       The assumption of the Option
(or portion) by the successor corporation or Parent thereof in connection with the Corporate Transaction. 

(b)       The substitution of the Option (or portion) by the successor corporation or Parent
thereof in connection with the Corporate Transaction, in which case the Option (or portion that has been substituted) will terminate on the consummation of the Corporate Transaction. 

(c)       The Company will provide the Grantee with written notice of the Corporate Transaction
and an exercise period for the Option of not less than ten (10) full days preceding the closing date of the Corporate Transaction, unless (A) a shorter period is required to permit a timely closing of the Corporate Transaction and
(B) such shorter period still offers the Grantee a reasonable opportunity to exercise the Option. Any exercise of the Option during such period will be contingent on the closing of the Corporate Transaction. Any portion of the Option that is
unexercised as of the closing of the Corporate Transaction will be terminated and will cease to be exercisable, subject to the consummation of the Corporate Transaction. 

(d)       The Company or successor, or its Affiliate, will terminate the Option (or portion)
and pay the Grantee an amount equal to the excess of (A) the Fair Market Value of the vested Shares subject to the Option (as of the effective date of the Corporate Transaction) over (B) the aggregate exercise price for such Shares;
provided, however, if the exercise price exceeds the Fair Market Value, the Option may be terminated without any payment. The payment will be made in the same form—that is, cash, securities of the surviving corporation or its Affiliate, or
other property with a Fair Market Value equal to the required amount—that is being paid to the Company’s shareholders in the Corporate Transaction, except as otherwise approved by the Administrator. If any portion of the consideration
received by the Company’s shareholders in accordance with the Corporate Transaction will be paid on a contingent or delayed basis, the Administrator may, subject to Section 409A of the Code, either subject the payment to the same timing
and conditions that apply to the shareholders’ consideration or determine the Fair Market Value of the Shares as of the time of the Corporate Transaction on the basis of the Administrator’s good faith estimate of the present value of the
probable future payment of such consideration. Any termination of the Option and any payment for such Option will be contingent on the consummation of the Corporate Transaction. 

  
 12 

 ONE STOP SYSTEMS, INC. 2015
STOCK OPTION PLAN 
  

 
  

 10.3         Acceleration of Option in Event of
Corporate Transaction.
 (a)       Except as provided otherwise in an individual
Option Agreement, in the event of a Corporate Transaction, each Option that is at the time outstanding under the Plan will automatically become fully vested and exercisable and be released from any restrictions on transfer (other than transfer
restrictions applicable to Options) and repurchase or forfeiture rights, immediately before the specified effective date of the Corporate Transaction, for all of the Shares at the time represented by such Option if the Option is not assumed or
substituted by the successor corporation or the Parent thereof in connection with the Corporate Transaction. For the purposes of accelerating the vesting and the release of restrictions applicable to Options under this Subsection (but not for
purposes of termination of such Options), the Option will be considered substituted if, in connection with the Corporate Transaction, the Option is replaced with a comparable Option with respect to shares of capital stock of the successor
corporation or Parent thereof or is replaced with a cash incentive program of the successor corporation or Parent thereof that preserves the compensation element of such Option existing at the time of the Corporate Transaction and provides for
subsequent payout in accordance with the same vesting schedule applicable to such Option. The determination of Option comparability above will be made by the Administrator, and its determination will be final, binding, and conclusive.  

(b)       The Grantee’s Option Agreement may provide acceleration of vesting or
exercisability of an Option in the event of any Corporate Transaction; provided, however, (i) such acceleration will be conditioned on the definition of a Corporate Transaction in this Plan, which will control over any different definition in
an Option Agreement or employment agreement; (ii) such acceleration will not occur if the Option is either assumed by the successor corporation or Parent thereof or replaced with a comparable Option with respect to shares of the capital stock
of the successor corporation or Parent thereof; and (iii) unless the shareholder approval requirements of Section 280G of the Code and the regulations thereunder are satisfied, such acceleration will be limited so no Grantee receives any
benefit hereunder that constitutes an “excess parachute payment” under Section 280G, as determined by the Company’s accountants in their sole discretion, taking into account the aggregate value of all compensation payments or
benefits to be paid or provided to the Grantee in connection with such Corporate Transaction under any other plan, agreement, or arrangement with the Company. The requirements of this Section may be waived only by the Board. 

11.       EFFECTIVE DATE AND TERM
OF PLAN. The Plan will become effective on the earlier to occur of its adoption by the Board or its approval by the shareholders of the Company, which dates are listed on Exhibit A. It will
continue in effect for a term of ten (10) years unless sooner terminated by the Board. Subject to Section 16 below and Applicable Laws, Options may be granted under the Plan at and after the time it becomes effective.  

12.       AMENDMENT, SUSPENSION, OR TERMINATION
OF THE PLAN. 
 (a)      
The Board may at any time amend, suspend, or terminate the Plan. To the extent necessary to comply with Applicable Laws, the Company will obtain shareholder approval of any Plan amendment in such a manner and to such a degree as required. 

(b)       No Option may be granted during any suspension of the Plan or after termination of the
Plan. 

  
 13 

 ONE STOP SYSTEMS, INC. 2015
STOCK OPTION PLAN 
  

 
  

 (c)       Any amendment, suspension, or
termination of the Plan (including termination of the Plan under Section 11 above) will not affect Options already granted, and such Options will remain in full force and effect as if the Plan had not been amended, suspended, or terminated,
unless (i) mutually agreed otherwise between the Grantee and the Administrator, which agreement must be in writing and signed by the Grantee and the Company; (ii) the Administrator determines the amendment, suspension, or termination is
necessary to comply with any Applicable Law or to avoid adverse accounting treatment; or (iii) the Administrator determines the amendment, suspension, or termination is not reasonably likely to diminish the benefits provided under such Options
or any such diminishment has been or will be reasonably compensated. 
 13.       RESERVATION
OF SHARES. 
 (a)         The
Company, during the term of the Plan, will at all times reserve and keep available such number of Shares as will be sufficient to satisfy the requirements of the Plan. 

(b)         The inability of the Company to obtain authority from any regulatory body
having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, will relieve the Company of any liability in respect of the failure to issue or sell such Shares as
to which such requisite authority will not have been obtained. 
 14.       NO
EFFECT ON TERMS OF EMPLOYMENT OR CONSULTING RELATIONSHIP. The Plan will not confer on any Grantee any
right with respect to the Grantee’s Continuous Service, nor will it interfere in any way with the Grantee’s right or the Company’s right to terminate the Grantee’s Continuous Service at any time, with or without cause, and with
or without notice. 
 15.       NOT AN ERISA
PLAN OR DEFERRED COMPENSATION PLAN. The Plan is not a “Retirement Plan” or “Welfare Plan” under the Employee Retirement Income
Security Act of 1974, as amended. The Plan is not a deferred compensation plan and is not intended to provide for the deferral of compensation under Section 409A of the Code. Except as specifically provided in a retirement or other benefit plan
of the Company or a Related Entity, Options will not be deemed compensation for purposes of computing benefits or contributions under any retirement plan or deferred compensation plan of the Company or a Related Entity and will not affect any
benefits under any other benefit plan of any kind or any benefit plan subsequently instituted under which the availability or amount of benefits is related to level of compensation.  

16.       SHAREHOLDER APPROVAL. Continuance of the
Plan will be subject to approval by the shareholders of the Company within twelve (12) months before or after the date the Plan is adopted. Such shareholder approval will be obtained in the degree and manner required under Applicable Laws. Any
Option that is granted or exercised before shareholder approval is obtained will be rescinded if shareholder approval is not obtained within the time prescribed, and Shares issued on the exercise of any such Option will not be counted in determining
whether shareholder approval is obtained. 
 17.       TAX
TREATMENT. Notwithstanding any other provision of the Plan, although the Administrator will use its best efforts to avoid the imposition of taxation, penalties, and interest under Section 409A of the Code
and other provisions of the Code, the tax treatment of Options under the Plan will not be, and is not, warranted or guaranteed. Although the Company or its agents may provide information regarding tax consequence to Grantees for the convenience of
Grantees 

  
 14 

 ONE STOP SYSTEMS, INC. 2015
STOCK OPTION PLAN 
  

 
  

 and their tax advisors, the Company and its advisors cannot give Grantees tax advice, and no
Grantee may rely on such information or any other information from the Company or its advisors regarding the tax consequences of Options. All Grantees are advised to consult with their own tax consultants in connection with the purchase or
disposition of Shares in accordance with an Option. Neither the Company, the Administrator, the Board, nor any of their agents or designees will be held liable for any taxes, penalties, or other monetary amounts owed by a Grantee, beneficiary, or
other person as a result of any exercise, purchase, or payment under the Plan or the administration of the Plan. For example, the Administrator will in good faith determine the Fair Market Value of its Common Stock in accordance with the
requirements of Section 409A and grant Options at or above such Fair Market Value on the date of grant so the Options are exempt from Section 409A, but there is no guarantee the Internal Revenue Service will agree with the
Administrator’s determination, and if any taxing authority challenges the Fair Market Value determination and finds an Option is subject to Section 409A, the Grantee will not make any claim against the Administrator, the Board, the
Company, or any valuation firm engaged by the Company. 
 18.       INFORMATION
TO GRANTEE. During the term of any Option granted under the Plan, the Company will provide or otherwise make available to each Grantee a copy of such financial statements as it generally provides
to its shareholders, at least annually; provided, however, the foregoing will not apply to the extent the Company complies with Rule 701 of the Securities Act with respect to the Plan; and provided further for purposes of determining compliance, any
registered domestic partner will be considered a “family member,” as that term is defined in Rule 701. 

  
 15 

 EXHIBIT A 

PLAN HISTORY 
  

 
  

November 6, 2015: Board adopts Plan with an initial reserve of one million five hundred thousand (1,500,000) shares. 

November __, 2015: Shareholders approve Plan with an initial reserve of one million five hundred thousand (1,500,000) shares. 

  
 16 

 ONE STOP SYSTEMS, INC. 2015 STOCK OPTION PLAN 

STOCK OPTION AGREEMENT 
  

November __, 2015 
  

 TABLE OF CONTENTS 

 

					
	 A.    NOTICE OF
STOCK OPTION AWARD
	  	 	1	 
	 1.          Grant of
Option
	  	 	1	 
	 2.          Vesting
Schedule
	  	 	1	 
	 3.          Termination of the
Option
	  	 	1	 
	 B.     TERMS AND
CONDITIONS OF OPTION
	  	 	2	 
	 1.          Terms of
Option
	  	 	2	 
	 2.          Exercise of
Option
	  	 	3	 
	 3.          Grantee’s
Representations
	  	 	4	 
	 4.          Method of
Payment
	  	 	4	 
	 5.          Restrictions on
Exercise
	  	 	5	 
	 6.          Terminations,
Leaves, and Changes in Continuous Service
	  	 	5	 
	 7.          Transferability of
Option
	  	 	6	 
	 8.          Company’s Right
of First Refusal
	  	 	6	 
	
9.          
Lock-up Agreement
	  	 	8	 
	 10.       Stop-Transfer Notices and Refusal to
Transfer
	  	 	8	 
	 11.       Clawbacks
	  	 	8	 
	 12.       Tax Consequences
	  	 	9	 
	 13.       Restrictive Legends
	  	 	9	 
	 14.       Notices
	  	 	10	 
	 15.       Electronic Delivery of
Documents
	  	 	10	 
	 16.       Interpretation, Modification, and
Enforcement of Option Agreement
	  	 	10	 
	 17.       No Rights as Shareholder Prior to
Exercise
	  	 	11	 
	 18.       No Rights to Partial Vesting, Future
Awards, or Continuous Service
	  	 	11	 
	 19.       Acknowledgment
	  	 	12	 
	 CONSENT OF SPOUSE OR DOMESTIC PARTNER
	  	 	13	 
	 EXHIBIT A: EXERCISE NOTICE
	  	 	1	 

 ONE STOP SYSTEMS, INC. 2015 STOCK OPTION PLAN 

STOCK OPTION AGREEMENT 
  

 
  

This Stock Option Agreement (the “Option Agreement”) between One Stop Systems, Inc., a California corporation (the
“Company”) and the Grantee named in the Notice of Stock Option Award below (the “Notice”) is effective as of the Date of Award and sets forth the terms and conditions governing the Award Number set forth in the Notice. 

A.         NOTICE OF STOCK OPTION
AWARD. 
 1.         Grant of Option. 

Grantee: ___________________ 

The Company grants to you an option (the “Option”) to purchase the Shares of the Company’s Common Stock at the
Exercise Price as follows: 
  

					
	Award Number	  	
                       
   
	  	
			
	Date of Award	  	
                       
   
	  	
			
	Vesting Commencement Date	  	
                       
   
	  	
			
	Exercise Price per Share	  	
$                       
 
	  	
			
	Total Number of Shares (“Shares”)	  	
                       
   
	  	
			
	Total Exercise Price	  	
$                       
 
	  	
		
	Type of Option (check one)	  	 ☐ Incentive Stock Option

		
		  	 ☐ Nonqualified Stock Option

 2.         Vesting Schedule. The Shares subject to the
Option may be exercised, in whole or in part, after they become vested in accordance with the vesting schedule below, and unvested Shares may not be exercised, except as otherwise set forth in this Option Agreement and the Plan. Subject to the
Grantee’s Continuous Service through the applicable vesting date, the Option will vest in accordance with the following schedule: thirty three and one-third percent (33 1/3 %) of the Shares subject to the
Option will vest twelve (12) months after the Vesting Commencement Date, and 1/12 of the Shares subject to the Option will vest each quarter thereafter. 

3.         Termination of the Option. 

(a)         This Option will terminate on the date that is ten (10) years after
the Date of Award (the “Expiration Date”), unless terminated sooner as set forth below. Notwithstanding any provision of this Option Agreement to the contrary, if the Grantee holds more than ten percent 

 

 STOCK OPTION AGREEMENT 

 
  

 

 (10%) of the voting power of all classes of stock of the Company as of the Date of Award set
forth above, the Expiration Date of any Incentive Stock Option issued to the Grantee will be five (5) years after the Date of Award. 

(b)         If the Grantee’s Continuous Service terminates for any reason, the
Option will terminate, to the extent the Option has not been exercised, on completion of the applicable period set forth below (the “Post-Termination Exercise Period”), except as provided in Section B.6. of this Option Agreement. 

(c)         If the Grantee’s Continuous Service terminates as a result of the
Grantee’s Disability, the Grantee may, to the extent the Option had vested on the date of such termination (the “Termination Date”), exercise the Option for twelve (12) months after the Termination Date. 

(d)        If the Grantee’s Continuous Service terminates as a result of the
Grantee’s death, the Grantee’s successor in interest may, to the extent the Option had vested on the date of the Termination Date, exercise the Option for twelve (12) months after the Termination Date. 

(e)         If the Grantee’s Continuous Service is terminated for Cause, the
Grantee’s right to exercise the Option will terminate on the Termination Date, except as otherwise determined by the Administrator in its sole discretion. 

(f)         If the Grantee’s Continuous Service terminates for any other reason,
the Grantee may, to the extent the Option had vested on the Termination Date, exercise the Option for three (3) months after the Termination Date. 

(g)         Notwithstanding anything in this Section to the contrary, in no event will
the Option be exercised later than the Expiration Date. 
 (h)         To the extent
the Grantee is not entitled to exercise the Option on the Termination Date and to the extent the Grantee does not exercise the Option within the applicable Post-Termination Exercise Period, the Option will terminate. The Grantee will have no right
to exercise any portion of the unvested Shares, except as otherwise determined by the Administrator in its sole discretion. 

B.         TERMS AND CONDITIONS OF
OPTION. 
 1.         Terms of Option. 

(a)         This Option is granted under the One Stop Systems, Inc. 2015 Stock Option
Plan, as amended (the “Plan”), and is subject to the terms and conditions of the Plan and this Option Agreement (including both the Notice and the following Terms and Conditions). Both the Plan and Option Agreement contain important terms
and restrictions covering this Option. The Plan is incorporated into this Option Agreement by reference in its entirety. Unless otherwise defined herein, the terms defined in the Plan will have the same defined meanings in this Option Agreement.

 (b)         If designated in the Notice as an Incentive Stock Option, the Option
is intended to qualify as an Incentive Stock Option as defined in Section 422 of the Code. However, to the extent 

  
 2 

 STOCK OPTION AGREEMENT 

 
  

 

 the Option exceeds the One Hundred Thousand Dollars ($100,000) limit in Section 422,
such excess Option will be treated as a Nonqualified Stock Option. 
 (c)        
The Exercise Price designated in the Notice must not be less than the Fair Market Value on the Date of Award. The Exercise Price is intended to be at least the Fair Market Value on the Date of Award, but if it is subsequently determined the Exercise
Price was less than the actual Fair Market Value on the Date of Award, the parties agree to work in good faith and in compliance with Applicable Laws to adjust the Exercise Price to the extent possible so it is no less than the Fair Market Value on
the Date of Award. 
 (d)         The Fair Market Value has been determined by the
Board of Directors, and the Company believes the valuation is in good faith compliance with the requirements of Section 422 of the Code (so the Option, if designated as an Incentive Stock Option, will qualify as an Incentive Stock Option) and
Section 409A of the Code (so the Option will be exempt from Section 409A). The Grantee understands, however, there is no guarantee the Internal Revenue Service (“IRS”) will agree with the Fair Market Value determination, and it
is possible the IRS could successfully assert the Fair Market Value on the Date of Award is greater than the value determined by the Board of Directors. If the Internal Revenue Service were to succeed in a determination the Fair Market Value on the
Date of Award is greater than the Exercise Price, the Option, if designated as an Incentive Stock Option, would no longer qualify as an Incentive Stock Option, and the Option would no longer be exempt from Section 409A and would likely violate
Section 409A. Any additional taxes, interest, and penalties due would be payable by the Grantee, and the Company has no obligation to reimburse the Grantee for that tax liability. The Grantee assumes all responsibility for such potential tax
liability. 
 2.         Exercise of Option. 

2.1         Right to Exercise. The Option will be exercisable during its term
to the extent it has vested in accordance with the Vesting Schedule set out in the Notice. The Option will be subject to the provisions of Section 10 of the Plan relating to the exercisability or termination of the Option in the event of a
Corporate Transaction. The Option may not be exercised if the issuance of the Shares subject to the Option at the time of such exercise would constitute a violation of any Applicable Laws and any applicable provision of the Plan and Option
Agreement. No partial exercise of the Option may be for less than the lesser of five percent (5%) of the total number of Shares subject to the Option or the remaining number of Shares subject to the Option. In no event will the Company issue
fractional Shares. 
 2.2         Method of Exercise. Any exercise of the
Option will occur at the principal office of the Company. To exercise the Option, the Grantee and, if applicable, Grantee’s spouse must do the following: 

(a)         Complete and sign the Exercise Notice (attached as Exhibit A); 

(b)         Deliver the Exercise Notice and full payment of the Exercise Price (in a
manner authorized by Section B.4. below) either in person, by certified mail, or by any other method approved by the Administrator; and 

  
 3 

 STOCK OPTION AGREEMENT 

 
  

 

 (c)       Make arrangements acceptable to the
Company for satisfaction of any applicable taxes as described in Subsection B.2.4 below. 

2.3       Exercise Date. Any exercise of the Option will be deemed effective on the date
that the Company has received a fully executed Exercise Notice accompanied by the full Exercise Price. The Shares will be considered transferred on such exercise date. 

2.4       Taxes. No Shares will be delivered to the Grantee or other person in accordance
with the exercise of the Option until the Grantee or other person has made arrangements acceptable to the Company for the satisfaction of all applicable income tax, employment tax, and social security tax withholding obligations. On exercise of the
Option, the Company or the Grantee’s employer may offset or withhold (from any amount owed by the Company or the Grantee’s employer to the Grantee) or collect from the Grantee or other person an amount sufficient to satisfy such tax
withholding obligations. In the case of an Incentive Stock Option, the Grantee also agrees, as partial consideration for the designation of the Option as an Incentive Stock Option, to notify the Company in writing within thirty (30) days of any
disposition of any shares acquired by exercise of the Option if such disposition occurs within two (2) years from the Award Date or within one (1) year from the date that the Shares were transferred to the Grantee. If the Company is
required to satisfy any federal, state, or local income or employment tax withholding obligations as a result of such an early disposition, the Grantee agrees to satisfy the amount of such withholding in a manner prescribed by the Company. 

2.5       Certificate. Except as otherwise provided in this Option Agreement or the Plan,
as soon as practicable after the Grantee has satisfied all of the obligations of this Section, the Company will prepare a certificate representing the Shares purchased by the Grantee in the names set forth in the Exercise Notice. If required by the
Option Agreement or any attachments, the Shares will be held in escrow. 
 3.         Grantee’s
Representations. 
 (a)       The Grantee understands neither the Option nor the
Shares exercisable in accordance with the Option have been registered under the Securities Act of 1933, as amended, or any other United States securities laws. 

(b)       The Grantee represents the person who signs the spousal consent for this Option
Agreement, as well as any Exercise Notice, is the Grantee’s spouse or domestic partner. If no one has signed the spousal consent, the Grantee represents the Grantee has no spouse or domestic partner. 

4.         Method of Payment. Payment of the Exercise Price will be made by any of the
following, or a combination thereof, at the election of the Grantee; provided, however, such exercise method does not then violate any Applicable Law: 

(a)       Cash or check; 

(b)       Surrender of Shares, or directing the Company to withhold Shares otherwise deliverable
on exercise of the Option, in a manner acceptable to the Administrator, which have a Fair Market Value on the date of exercise equal to the aggregate Exercise Price of the Shares as to 

  
 4 

 STOCK OPTION AGREEMENT 

 
  

 

 which the Option is being exercised (but only to the extent such use of Shares would not
result in an accounting compensation charge with respect to the Shares used to pay the exercise price); or 

(c)         If the exercise occurs on or after the Registration Date, payment through
any cashless exercise program that may be established by the Company or a Company-designated brokerage firm under the Plan; 

5.         Restrictions on Exercise. The Option may not be exercised until such time as
the Plan has been approved by the shareholders of the Company. If the Grantee is an employee of the Company or a Related Entity and is not exempt from the overtime requirements under either federal or state wage and hour law, Grantee may not
exercise any Shares during the six (6)-month period following the Date of Award, except as authorized by Grantee’s employer in its sole discretion. 

6.         Terminations, Leaves, and Changes in Continuous Service. 

6.1         Changes in Continuous Service. In the event of the Grantee’s
change in status from Employee, Director, or Consultant to any other status as Employee, Director, or Consultant, the Option will remain in effect and will continue to vest, except if the Grantee changes from an Employee to a Consultant or Director
or from an Employee whose customary employment is twenty (20) hours or more per week to an Employee whose customary employment is fewer than twenty (20) hours per week, the Administrator may, in its discretion, cease the vesting of the
Option as of such change in status. An Incentive Stock Option will cease to be treated as an Incentive Stock Option following a change in status to the extent required by the Code. 

6.2         Leaves of Absence. During any leave of absence authorized by the
Grantee’s employer, the Option will remain in effect, and the vesting of the Option will cease after the leave of absence exceeds a period of ninety (90) days, unless continued vesting is required by applicable law. Vesting of the Option
will resume on the Grantee’s termination of the leave of absence and return to service to the Company or a Related Entity. If the Option is an Incentive Stock Option and the leave of absence does not satisfy the applicable provisions of the
Code, the Grantee must exercise the Incentive Stock Option within the time period required by the Code, or the Option will cease to be treated as an Incentive Stock Option. 

6.3         Transfers and Reorganizations. If a transfer of the Grantee or any
spinoff, sale, transaction, or other change in the Grantee’s employer does not interrupt the Grantee’s Continuous Service, the Option will remain in effect and will continue to vest, except to the extent otherwise determined by the
Administrator in its sole discretion. If a transfer of the Grantee or any spinoff, sale, transaction, or other change in the Grantee’s employer results in a termination of the Grantee’s Continuous Service, the Grantee’s Continuous
Service will be deemed terminated on the date of such transfer, transaction, or change, except to the extent otherwise determined by the Administrator in its sole discretion. 

6.4         Disability of Grantee. If the Option is an Incentive Stock Option
and the Grantee’s employment terminates as a result of a Disability that does not qualify as a “disability” under the applicable provisions of the Code, the Grantee must exercise the Incentive Stock Option within the time period
required by the Code, or the Option will cease to be treated as an Incentive Stock Option. 

  
 5 

 STOCK OPTION AGREEMENT 

 
  

 

 6.5         Post-Termination Death
of Grantee. In the event of the Grantee’s death during the Post-Termination Exercise Period, the Grantee’s estate, or a person who acquired the right to exercise the Option by bequest or inheritance, may exercise the Option, but only
to the extent the Grantee could exercise the Option on the Termination Date, within the Post-Termination Exercise Period set forth in the Notice applicable if the Grantee’s Continuous Service had terminated as a result of the Grantee’s
death, except such Post-Termination Exercise Period will commence on the date of death rather than termination. The Option may not be exercised later than the Expiration Date. If the Option is not exercised to the extent so entitled within the time
specified herein, the Option will terminate. 
 7.         Transferability of Option.
The Option, if an Incentive Stock Option, may not be transferred in any manner other than by will or by the laws of descent and distribution and may be exercised during the lifetime of the Grantee only by the Grantee. The Option,
if a Nonqualified Stock Option, may be transferred by will, by the laws of descent and distribution, and to the extent and in the manner authorized by the Administrator, to members of the Grantee’s immediate family (as determined by the
Administrator) or under a domestic relations order. The terms of the Option will be binding on any executors, administrators, heirs, successors, and assigns of the Grantee. 

8.         Company’s Right of First Refusal. Neither the Grantee nor a transferee
(either being sometimes referred to herein as the “Holder”) will sell, pledge, encumber, or otherwise transfer (including transfers by operation of law) any Shares or any right or interest therein without first complying with the
provisions of this Section or obtaining the prior written consent of the Company. 
 (a)      
Transfer Notice. The Holder will provide the Company with written notice (the “Transfer Notice”) stating: 

(i)       The Holder’s bona fide intention to sell or otherwise transfer the Shares; 

(ii)       The name of the proposed transferee; 

(iii)       The number of Shares to be transferred (the “Offered Shares”); and 

(iv)       The bona fide cash price or other consideration for which the Holder proposes to
transfer the Shares, and the terms thereof. 
 (b)       Exercise of Right of First
Refusal. At any time during the forty-five (45) day period after receipt of the Transfer Notice (the “Option Period”), the Company will have the right to purchase (the “Right of First Refusal”) all, but not less than
all, of the Offered Shares at a price determined by Subsection (c) below, which Right of First Refusal will be exercised by written notice (the “First Refusal Exercise Notice”) to the Holder. 

(c)       Payment Terms. The purchase price for the Offered Shares will be the price
stated in the Transfer Notice. In the event the Transfer Notice provides for payment in consideration other than cash, the Company (or its assign(s) as provided in Section B.8(d) below) will have the right to pay for the Offered Shares by the cash
equivalent value of the consideration described in the Transfer Notice as determined by the Administrator in good faith. The Company (or its assign(s)) will pay the purchase price for the Offered Shares to the Holder by cash, check, cancellation of
any 

  
 6 

 STOCK OPTION AGREEMENT 

 
  

 

 indebtedness to the Company, any consideration stated in the Transfer Notice, or a
combination thereof, within fifteen (15) days after delivery of the First Refusal Exercise Notice or in the manner and at the times set forth in the Transfer Notice. On payment for the Offered Shares to the Holder or into escrow for the benefit
of the Holder, the Company (or its assign(s)) will become the legal and beneficial owner of the Offered Shares and all rights and interest therein or related thereto, and the Company will have the right to transfer the Offered Shares to its own name
or its assigns without further action by the Holder. 
 (d)        
Assignment. Whenever the Company has the right to purchase Shares under this Right of First Refusal, the Company may designate or assign one or more employees, officers, directors, or shareholders of the Company or other persons or
organizations to exercise all or a part of the Company’s Right of First Refusal. 

(e)         Holder’s Right to Transfer. If the Company (or its assign(s))
does not elect to exercise the Right of First Refusal within the Option Period or such earlier time in which the Company (or its assign(s)) notifies the Holder it will not exercise the Right of First Refusal, then the Holder may transfer the Shares
on the terms and conditions stated in the Transfer Notice, provided the transfer is made within one hundred twenty (120) days of the expiration of the Option Period, the transfer complies with all Applicable Laws, and the transferee agrees in
writing such Shares will be held subject to the provisions of this Option Agreement. No transfer of the Offered Shares following such one hundred twenty (120) day period and no transfer in accordance with terms that are different than the terms
stated in the Transfer Notice (including the name of the proposed transferee) will be permitted without a new written Transfer Notice prepared and submitted in accordance with the requirements of this Right of First Refusal. 

(f)         Exception for Certain Family Transfers. Anything to the contrary in
this Section B.8 notwithstanding, the transfer of any or all of the Shares during the Grantee’s lifetime or on the Grantee’s death by will or intestacy to the Grantee’s Immediate Family or a trust for the benefit of the Grantee or the
Grantee’s Immediate Family will be exempt from the provisions of this Right of First Refusal (a “Permitted Transfer”). In a Permitted Transfer, the transferee will receive and hold the Shares so transferred subject to the provisions
of this Option Agreement, and there will be no further transfer of such Shares except in accordance with the terms of this Option Agreement. “Immediate Family” as used herein will mean spouse, domestic partner (as determined by the
Administrator), child, lineal descendant or antecedent, father, mother, brother, or sister, and the lineal descendants of such individuals. 

(g)         Termination of Right of First Refusal. The provisions of this Right
of First Refusal will terminate as to all Shares on the Registration Date. 

(h)         Additional Shares or Substituted Securities. In the event of any
transaction described in Section 10 of the Plan, any new, substituted, or additional securities or other property that by reason of any such transaction is distributed with respect to the Shares will be immediately subject to the Right of First
Refusal, but only to the extent the Shares are at the time covered by such right. 

(i)         Corporate Transaction. Immediately prior to the consummation of a
Corporate Transaction, the Right of First Refusal will automatically lapse in its entirety, except to the extent this Option Agreement is assumed by the successor corporation (or its Parent) in connection with such Corporate Transaction, in which
case the Right of First Refusal will apply to the new capital 

  
 7 

 STOCK OPTION AGREEMENT 

 
  

 

 stock or other property received in exchange for the Shares in consummation of the Corporate
Transaction, but only to the extent the Shares are at the time covered by such right. 
 9.    
    Lock-up Agreement. The Grantee, if requested by the Company and lead underwriter of any public offering of the Common Stock or other securities of the Company (the
“Lead Underwriter”), hereby irrevocably agrees not to sell, contract to sell, grant any option to purchase, transfer the economic risk of ownership in, make any short sale of, pledge, or otherwise transfer or dispose of any interest in any
Common Stock or any securities convertible into or exchangeable or exercisable for, or any other rights to purchase or acquire, Common Stock (except Common Stock included in such public offering or acquired on the public market after such offering
or as authorized in writing by the Company and the Lead Underwriter) during the period following the effective date of a registration statement of the Company filed under the Securities Act of 1933, as amended, as the Lead Underwriter will specify,
which will not exceed one hundred eighty (180) days (plus any additional period as may be reasonably requested by the Company or Lead Underwriter to accommodate regulatory restrictions on (a) the publication or other distribution of
research reports and (b) analyst recommendations and opinions, including, but not limited to, the restrictions contained in NASD Rule 2711(f)(4) or NYSE Rule 472(f)(4), or any successor provisions or amendments thereto). The Grantee further
agrees the Company may impose stop-transfer instructions with respect to such Common Stock until the end of such period. The Grantee agrees to sign such documents as may be requested by the Lead Underwriter to effect the foregoing and, if requested
by the Company or Lead Underwriter, to provide such information as may be required by the Company or Lead Underwriter in connection with the completion of the public offering. The Company and Grantee acknowledge each Lead Underwriter of a public
offering of the Company’s stock, during the period of such offering and for the 180-day period thereafter, is an intended beneficiary of this Section. 

10.         Stop-Transfer Notices and Refusal to Transfer. 

10.1       Stop-Transfer Notices. To ensure compliance with the restrictions on transfer
set forth in this Option Agreement or the Plan, the Company may issue appropriate stop-transfer instructions to its transfer agent, if any, and if the Company transfers its own securities, it may make appropriate notations to the same effect in its
own records. 
 10.2       Refusal to Transfer. The Company will not be required
(a) to transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions of this Option Agreement or (b) to treat as owner of such Shares or to accord the right to vote or pay dividends to
any purchaser or other transferee to whom such Shares have been so transferred. 
 11.
        Clawbacks. Grantee irrevocably agrees this Option is conditioned on Grantee’s obligation to repay any amount received or benefit obtained from the Option (including proceeds from the
sale of the Shares or amounts received on the termination of the Option pursuant to a Corporate Transaction) under the following circumstances: (a) any circumstances requiring a clawback (or required to be covered in a clawback policy) under
any Applicable Law; or (b) any circumstances set forth in a clawback or similar policy that is approved by the Administrator and applies generally to a class of Employees, Consultants, or Directors that includes the Grantee, including any such
policy that may be approved after the date the Option is granted or exercised. The manner of repaying an amount subject to this clawback provision will be set forth in the applicable policy or determined by the Administrator in its sole discretion.

  
 8 

 STOCK OPTION AGREEMENT 

 
  

 

 12.      Tax Consequences. Set forth below is a
brief summary, as of the date of this Option Agreement, of some of the federal tax consequences of exercise of the Option and disposition of the Shares. This summary is necessarily incomplete, and the tax laws and regulations are subject to change.
The Grantee should consult the Grantee’s own tax adviser before exercising the option or disposing of the Shares. The Company and its advisors cannot give Grantee tax advice, and the Grantee may not rely on the information in this Section or
any other information from the Company or its advisors regarding the tax consequences of Awards. 
 (a)
      Exercise of Incentive Stock Option. If the Option qualifies as an Incentive Stock Option, there will be no regular federal income tax liability on the exercise of the Option, although the excess, if any, of
the Fair Market Value of the Shares on the date of exercise over the Exercise Price will be treated as income for purposes of the alternative minimum tax for federal tax purposes and may subject the Grantee to the alternative minimum tax in the year
of exercise. The option will lose its Incentive Stock Option treatment if it is exercised later than (i) the date that is three (3) months after termination of the Grantee’s employment with the Company or (ii) in the event of
Disability, the date that is one (1) year after termination of employment. In the event of the Grantee’s death, the option would be eligible for Incentive Stock Option treatment only if the Grantee dies while employed by the Company or
within the three (3) month period after the Grantee’s employment terminates. 
 (b)    
  Exercise of Nonqualified Stock Option. On exercise of a Nonqualified Stock Option, the Grantee will be treated as having received compensation income (taxable at ordinary income tax rates) equal to the excess, if any, of the Fair
Market Value of the Shares on the date of exercise over the Exercise Price. If the Grantee is an Employee or a former Employee, the Company will be required to withhold from the Grantee’s compensation or collect from the Grantee and pay to the
applicable taxing authorities an amount in cash equal to a percentage of this compensation income at the time of exercise and may refuse to honor the exercise and refuse to deliver Shares if such withholding amounts are not delivered at the time of
exercise. 
 (c)       Disposition of Shares. In the case of a Nonqualified Stock
Option, if Shares are held for more than one (1) year, any gain realized on disposition of the Shares will be treated as long-term capital gain for federal income tax purposes. In the case of an Incentive Stock Option, if Shares transferred in
accordance with the Option are held for more than one (1) year after receipt of the Shares and are disposed of more than two (2) years after the Date of Award, any gain realized on disposition of the Shares will also be treated as
long-term capital gain for federal income tax purposes. If Shares purchased under an Incentive Stock Option are disposed of before the expiration of such one (1) year or two (2) year periods, any gain realized on such disposition will be
treated as compensation income (taxable at ordinary income rates) to the extent of the difference between the Exercise Price and the lesser of (i) the Fair Market Value of the Shares on the date of exercise or (ii) the sale price of the
Shares. Any additional gain will be treated as capital gain for federal income tax purposes. 

13.      Restrictive Legends. On exercise of the Option, the Grantee understands and agrees the
Company will cause the legends set forth below, or legends substantially equivalent thereto, to be placed on any certificate(s) evidencing ownership of the Shares, together with any other legends that may be required by the Company or by state or
federal securities laws: 

  
 9 

 STOCK OPTION AGREEMENT 

 
  

 

 (a)      Securities Law Restrictions:

 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) OR ANY
STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, OR OTHERWISE TRANSFERRED, PLEDGED, OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN THE OPINION OF COUNSEL SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE,
TRANSFER, PLEDGE, OR HYPOTHECATION IS IN COMPLIANCE THEREWITH. 
 (b)      Option Agreement
Restrictions: 
 THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND A RIGHT
OF FIRST REFUSAL HELD BY THE ISSUER OR ITS ASSIGNEE(S), AS SET FORTH IN THE OPTION AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. SUCH TRANSFER
RESTRICTIONS AND RIGHT OF FIRST REFUSAL ARE BINDING ON TRANSFEREES OF THESE SHARES. 

(c)      Removal of Legend. If, in the opinion of the Company and its counsel (in their
sole discretion), any of the legends on a certificate representing the Shares is no longer required, the Grantee will be entitled to exchange such certificate for a new certificate representing the Shares without such legend. 

14.      Notices. Any notice required or permitted hereunder will be given in writing and will be
deemed effectively given on personal delivery, on deposit in the United States mail by certified mail (if the parties are within the United States), or on deposit for delivery by a mail courier service, with postage and fees prepaid, addressed as
follows: (a) to the Company at the then-current address of the Company’s headquarters, or (b) to the Grantee or any subsequent Holder at the last address on record with the Company. Grantee and any subsequent Holder will be obligated
to notify the Company in writing of any change in address. 
 15.      Electronic Delivery of
Documents. Grantee consents to electronic delivery of any documents relating to this Option and the Plan, any documents required to be delivered to the Company’s shareholders or option holders, and any disclosures required by Applicable
Laws. This consent may be withdrawn at any time on written notice to the Company. 

16.      Interpretation, Modification, and Enforcement of Option Agreement. 

16.1      Entire Agreement, Choice of Law. The Plan and Option Agreement constitute the
entire agreement with respect to this Option and supersede all prior or contemporaneous agreements and representations of the Company and Grantee with respect to this Option (including, but not limited to, any prior notices or option agreements with
the same Award Number and any references to this Option in an offer letter or employment agreement). The Plan and Option Agreement are to be construed in accordance with and governed by the internal laws of the State of California, without giving
effect to any choice-of-law rule that would cause the application of the laws of any other jurisdiction. 

  
 10 

 STOCK OPTION AGREEMENT 

 
  

 

 16.2        Assignment, Binding
Effect. The Company may assign any of its rights under the Option Agreement to single or multiple assignees, and the Plan and Option Agreement will be binding on and will inure to the benefit of the successors, heirs, executors, administrators,
permitted transferees, and permitted assigns of the parties. 

16.3        Captions, Decisions of Administrator. The captions used in the Plan
and Option Agreement are inserted for convenience and will not be deemed a part of the agreement for construction or interpretation. The parties agree to accept as final and binding all decisions and interpretations of the Administrator on any
issues arising under the Plan or this Option. 
 16.4        Modification,
Waiver, No Third Party Rights. The Option Agreement may not be modified adversely to the Grantee’s interest except in a writing signed by the Company and Grantee, unless the Administrator determines the amendment is necessary to comply with
any Applicable Law or to avoid adverse accounting treatment. The Option will be subject to any modifications to the Plan that are made in accordance with the terms of the Plan. No waiver of any right in the Option Agreement will be effective unless
in writing. Nothing in the Plan and Option Agreement (except as expressly provided therein) is intended to confer any rights or remedies on any persons other than the parties. 

16.5        Enforceability. Should any provision of the Plan or Option
Agreement be determined by a court of law to be illegal or unenforceable, such provision will be enforced to the fullest extent allowed by law and the other provisions will nevertheless remain effective and will remain enforceable. 

16.6        Further Assurances. The parties agree to execute such further
instruments and to take such further action as may be reasonably necessary to carry out the purposes and intent of the Plan and Option Agreement. 

17.       No Rights as Shareholder Prior to Exercise. Until the stock certificate
evidencing such Shares is issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a shareholder will exist with
respect to the Shares, notwithstanding the exercise of the Option. No adjustment will be made for a dividend or other right for which the record date is prior to the date the stock certificate is issued, except as provided in Subsection 10.1 of the
Plan. The Grantee will enjoy rights as a shareholder until such time as the Grantee disposes of the Shares or the Company (or its assign(s)) exercises the Right of First Refusal. 

18.       No Rights to Partial Vesting, Future Awards, or Continuous Service. The Grantee
acknowledges and agrees as follows: 
 (a)      The Grantee’s right to any Shares subject
to the Option will vest, if at all, only as set forth in the vesting schedule in the Notice, and Grantee will not have any rights at all with respect to Shares before they have vested, except as otherwise provided in this Option Agreement. If
Grantee’s Continuous Service is terminated, with or without cause, prior to any vesting date or event, Grantee will not be entitled to any vesting of any portion of the Shares that would have vested on the vesting date or event, except as
otherwise provided in this Option Agreement. 

  
 11 

 STOCK OPTION AGREEMENT 

 
  

 

 (b)         Nothing in the Option
Agreement or the Plan (including, but not limited to, the Administrator’s past history of granting Awards under the Plan) will confer on the Grantee any right with respect to future awards. 

(c)         Except as otherwise provided in a written agreement signed by an
authorized officer of the Company (or any Related Entity for which Grantee is providing services), both the Grantee and Company have the right to terminate Grantee’s Continuous Service at will, with or without cause, and at any time, with or
without notice, and nothing in the Option Agreement or the Plan will confer on the Grantee any right with respect to the continuation of Grantee’s Continuous Service. 

19.      Acknowledgment. By signing this Option Agreement, the Grantee acknowledges the Grantee
has received a copy of the Plan and this Option Agreement, represents the Grantee has reviewed the Plan and this Option Agreement in their entirety, acknowledges the Grantee has had an opportunity to obtain the advice of counsel before executing
this Option Agreement, and accepts the Option subject to all of the terms and provisions of the Plan and this Option Agreement. This Option Agreement may be executed in two or more counterparts, each of which will be deemed an original and all of
which together will constitute one instrument. 
 The Grantee represents the Grantee is a bona fide resident of the state of
                            . 

 

							
	 Offered by:
	 		 	 COMPANY

			
	
Date:                    
	 		 	 One Stop Systems, Inc.,

		 		 	 a California corporation

				
		 		 	 By:
	 	  

		 		 		 	 Stephen D. Cooper, President and Chief Executive Officer

			
		 		 	 Address: 2235 Enterprise Street, Suite 110

		 		 	                Escondido, California
92029

  

							
	 Accepted by:
	 		 	 GRANTEE

			
	
Date:                    
	 		 	 Signature:
                                         
           

			
		 		 	 Printed Name:
                                         
    

				
		 		 	 Address:
	 	
                       
                               

		 		 		 	
                       
                               

  
  

  
 12 

 CONSENT OF SPOUSE OR DOMESTIC PARTNER 

 
  

 
  

 I,
                        , spouse or domestic partner of the Grantee, have read and hereby approve the Option Agreement. In
consideration of the Company’s granting my spouse or domestic partner the Option, I hereby agree any community property or similar interest I may have in the Shares will be bound irrevocably by the Option Agreement and Plan. I hereby appoint my
spouse or domestic partner as my attorney-in-fact with respect to any amendment or exercise of any rights regarding the Option. 

 

			
	 Date:
                            
	  	 Signature:
                                         
                                         
  

		
		  	 Printed Name:
                                         
                                    

  
 13 

 EXHIBIT A 

ONE STOP SYSTEMS, INC. 2015 STOCK OPTION PLAN 

EXERCISE NOTICE 
  

 
  

USE THIS FORM WHEN YOU EXERCISE SHARES 

(SEE SUBSECTION B.2.2 IN THE OPTION AGREEMENT) 

To One Stop Systems, Inc.: 

I hereby elect to exercise my option to purchase shares of Common Stock under the One Stop Systems, Inc. 2015 Stock Option
Plan, as amended (the “Plan”), and in accordance with the Stock Option Agreement for Award Number                      dated
                     (the “Option Agreement”), as follows: 

 

					
	 Total Number of Shares Purchased (“Shares”):
	  	
                       
                     
	  	
			
	 Exercise Price per Share:
	  	
$                       
                   
	  	
			
	 Total Purchase Price (“Purchase Price”):
	  	
$                       
                   
	  	

 1.      Method of Exercise. The Purchase Price must be paid by one or more of the
methods set forth in Section B.4 of the Option Agreement. I select the following method(s) of
payment:                         
                                        
                                         
                                         
                                        

2.      Name on Certificate. The Certificate(s) for the Shares will be issued in my name as written at the end of
the Option Agreement or, with the approval of the Company, in the following names: 

                          
                                         
                                         
                                         
             
 3.      Terms of
Exercise. This exercise of the Option is subject to the terms and conditions of this Exercise Notice as well as the terms and conditions of the Plan and Option Agreement, both of which are incorporated into this Exercise Notice by
reference in their entirety. Unless otherwise defined herein, the terms defined in the Plan and Option Agreement will have the same defined meanings in this Exercise Notice. I acknowledge I am acquiring the Shares subject to all of the terms and
restrictions in the Option Agreement, including, but not limited to, the Right of First Refusal and the Lock-up Agreement, and the Shares will be printed with the legends set forth in Section B.13 of the
Option Agreement. 
 4.      Taxes. I understand I may suffer adverse tax consequences as a
result of my purchase or disposition of the Shares. Some of the tax consequences are summarized in Section B.12 of the Option Agreement. The Company advises me to consult with my own tax consultants in connection with the purchase or disposition of
the Shares, and I have done so to the extent I consider advisable. I am not relying on the Company for any tax advice. 

  
 1 

 EXERCISE NOTICE 

 
  

 

 5.         Risk of Investment. I am
aware my purchase of the Shares is a speculative investment that has limited liquidity and may be completely lost. I am willing and able to take the risk of a complete loss of my investment. 

6.         Investment Representations. I understand the Shares have not been registered
under the Securities Act of 1933 in reliance on a specific exemption therefrom and the exemption depends on, among other things, the bona fide nature of my investment representations below. On the basis of this understanding, I make the following
representations to the Company, and the Company will rely on these representations unless the Shares have been registered under the Securities Act at the time of exercise: 

(a)      I am aware of the Company’s business affairs and financial condition and have
acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the Shares. 

(b)      I am acquiring and will hold the Shares for investment for my own account only and not
with a view to, or for resale in connection with, any “distribution” of the Shares within the meaning of the Securities Act. 

(c)      I understand the Shares must be held indefinitely unless they are subsequently
registered under the Securities Act or unless I obtain an opinion of counsel satisfactory to the Company that registration is not required. I further understand the Company is under no obligation to register the Shares. 

(d)      I understand the Shares, which were acquired in a nonpublic offering, are considered
“restricted securities” under the Securities Act, and the Securities and Exchange Commission has adopted Rules 144 and 701 under the Securities Act, which permit limited public resale of “restricted securities” subject to the
satisfaction of certain conditions. These conditions may include, but are not limited to, the following: certain current public information about the Company is available, the sale occur after a particular holding period, the sale be made through an
unsolicited broker’s transaction, the amount of securities being sold during any three (3)-month period not exceed specific limits, and certain forms published by the Securities and Exchange Commission have been timely filed. I understand these
conditions have not been satisfied and the Company is under no obligation to satisfy these conditions. 

(e)      I agree not to sell or otherwise dispose of the Shares except in compliance with Rule
144 under the Securities Act and any other applicable rule under the Securities Act, the Securities Exchange Act of 1934, or any other Applicable Law, and in compliance with any applicable policies or procedures adopted by the Company (including,
but not limited to, insider trader restrictions and pre-clearance procedures) that, in the opinion of counsel for the Company, are necessary or desirable for compliance with any Applicable Law. 

7.         Exercise Date. The effective date of this exercise will be as set forth in
Subsection B.2.3 of the Option Agreement. 
 8.         Acknowledgment. By signing
this Exercise Notice, I acknowledge I have received, read, and understood this Exercise Notice, the Plan, and the Option Agreement and agree to be bound by 

  
 2 

 EXERCISE NOTICE 

 
  

 

 their terms. This Exercise Notice may be executed in two or more counterparts, each of which
will be deemed an original and all of which together will constitute one instrument. 
  

							
	 Submitted by:
	 		 	 GRANTEE

			
	
Date:                      
  
	 		 	 Signature:
                                         
                 

			
		 		 	 Printed Name:
                                         
          

			
		 		 	 Address:
                                         
                   

		 		 	
                       
                                         
            

			
	 Accepted by:
	 		 	 COMPANY

			
	 Date:
                        
	 		 	 One Stop Systems, Inc.,

		 		 	 a California corporation

				
		 		 	 By:
	 	
                       
                                         
                

		 		 		 	 Stephen D. Cooper, President and Chief Executive Officer

			
		 		 	 Address: 2235 Enterprise Street, Suite 110

		 		 	                Escondido, California
92029

  
 3 

 CONSENT OF SPOUSE OR DOMESTIC PARTNER 

 
  

 
  

 I,
                                        ,
spouse or domestic partner of the Grantee, have read and hereby approve the foregoing Exercise Notice. In consideration of the Company’s granting my spouse or domestic partner the right to purchase the Shares as set forth in the Exercise
Notice, I agree any community property or similar interest I may have in the Shares will be bound irrevocably by the Exercise Notice, the Option Agreement, and the Plan. I hereby appoint my spouse or domestic partner as my attorney-in-fact with respect to any amendment or exercise of any rights with respect to the Option. 
  

			
	 Date:
                            
	  	 Signature:
                                         
                                         
  

		
		  	 Printed Name:
                                         
                                    

  
 4EX-10.5

 Exhibit 10.5 
  

 
  

2017 EQUITY INCENTIVE PLAN 

OF 
 ONE STOP SYSTEMS,
INC. 
  
  

 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
			
	 1.
	 	GENERAL	  	 	1	 
			
	 2.
	 	DEFINITIONS	  	 	1	 
			
	 3.
	 	ADMINISTRATION	  	 	7	 
			
	 4.
	 	SHARES SUBJECT TO THE PLAN; OVERALL LIMITATION	  	 	10	 
			
	 5.
	 	ELIGIBILITY	  	 	11	 
			
	 6.
	 	OPTION AGREEMENT PROVISIONS	  	 	11	 
			
	 7.
	 	PROVISIONS OF STOCK AWARDS OTHER THAN OPTIONS	  	 	14	 
			
	 8.
	 	PERFORMANCE-BASED AWARDS	  	 	16	 
			
	 9.
	 	COVENANTS OF THE COMPANY	  	 	17	 
			
	 10.
	 	USE OF PROCEEDS	  	 	17	 
			
	 11.
	 	ADJUSTMENTS UPON CHANGE IN COMMON STOCK	  	 	17	 
			
	 12.
	 	ADJUSTMENTS UPON CHANGE IN CONTROL	  	 	17	 
			
	 13.
	 	ACCELERATION OF EXERCISABILITY AND VESTING	  	 	18	 
			
	 14.
	 	DISSOLUTION OR LIQUIDATION	  	 	18	 
			
	 15.
	 	MISCELLANEOUS	  	 	18	 
			
	 16.
	 	AMENDMENT OF THE PLAN	  	 	20	 
			
	 17.
	 	TERMINATION OR SUSPENSION OF THE PLAN	  	 	20	 
			
	 18.
	 	EFFECTIVE DATE OF PLAN	  	 	21	 
			
	 19.
	 	NON-EXCLUSIVITY OF THE PLAN	  	 	21	 
			
	 20.
	 	LIABILITY OF THE COMPANY	  	 	21	 
			
	 21.
	 	CHOICE OF LAW	  	 	21	 

  
 i 

 ONE STOP SYSTEMS, INC. 

2017 EQUITY INCENTIVE PLAN 

TERMINATION DATE: OCTOBER 9, 2027 

 

	1.	GENERAL.  

 (a)
Purposes. The purposes of the Plan are as follows: 
 (i) To provide additional incentive for selected Employees,
Directors and Consultants to further the growth, development and financial success of the Company by providing a means by which such persons can personally benefit through the ownership of capital stock of the Company; and 

(ii) To enable the Company to secure and retain key Employees, Directors and Consultants considered important to the long-term success of the
Company by offering such persons an opportunity to own capital stock of the Company. 
 (b) Eligible Stock Award
Recipients. The persons eligible to receive Stock Awards under the Plan are the Employees, Directors and Consultants of the Company and its Affiliates. 

(c) Available Stock Awards. The following Stock Awards are available under the Plan: (i) Incentive Stock
Options; (ii) Nonstatutory Stock Options; (iii) Restricted Stock awards, (iv) Restricted Stock Units; (v) Stock Bonus awards; and (vi) Performance-Based Awards. 

 

	2.	DEFINITIONS. 

 (a)
“Administrator” means the entity that conducts the general administration of the Plan as provided herein. The term “Administrator” shall refer to the Board unless the Board has delegated administration to a Committee as
provided in Article 3. 
 (b) “Affiliate” means: 

(i) with respect to Incentive Stock Options, any “parent corporation” or “subsidiary corporation” of the Company, whether
now existing or hereafter created or acquired, as those terms are defined in Sections 424(e) and 424(f) of the Code, respectively; and 

(ii) with respect to Stock Awards other than Incentive Stock Options, any entity described in paragraph (a) of this Section 2(b),
plus any other corporation, limited liability company, partnership or joint venture, whether now existing or hereafter created or acquired, with respect to which the Company beneficially owns more than fifty percent (50%) of: (1) the total
combined voting power of all outstanding voting securities or (2) the capital or profits interests of a limited liability company, partnership or joint venture. 

(c) “Award Shares” means the shares of Common Stock of the Company issued or issuable pursuant to a Stock Award,
including Option Shares issued or issuable pursuant to an Option. 

 (d) “Board” means the Board of Directors of the Company. 

(e) “Change in Control” shall mean: 

(i) The direct or indirect sale or transfer, in a single transaction or a series of related transactions, by the stockholders of the Company
of voting securities, in which the holders of the outstanding voting securities of the Company immediately prior to such transaction or series of transactions hold, as a result of holding Company securities prior to such transaction, in the
aggregate, securities possessing less than fifty percent (50%) of the total combined voting power all outstanding voting securities of the Company or of the acquiring entity immediately after such transaction or series of related transactions; 

(ii) A merger or consolidation in which the Company is not the surviving entity, except for a transaction in which the holders of the
outstanding voting securities of the Company immediately prior to such merger or consolidation hold as a result of holding Company securities prior to such transaction, in the aggregate, securities possessing more than fifty percent (50%) of the
total combined voting power of all outstanding voting securities of the surviving entity (or the parent of the surviving entity) immediately after such merger or consolidation; 

(iii) A reverse merger in which the Company is the surviving entity but in which the holders of the outstanding voting securities of the
Company immediately prior to such merger hold as a result of holding Company securities prior to such transaction, in the aggregate, securities possessing less than fifty percent (50%) of the total combined voting power of all outstanding voting
securities of the Company or of the acquiring entity immediately after such merger; 
 (iv) The sale, transfer or other disposition (in one
transaction or a series of related transactions) of all or substantially all of the assets of the Company, except for a transaction in which the holders of the outstanding voting securities of the Company immediately prior to such transaction(s)
receive as a distribution with respect to securities of the Company, in the aggregate, securities possessing more than fifty percent (50%) of the total combined voting power of all outstanding voting securities of the acquiring entity immediately
after such transaction(s); or 
 (v) Any time individuals who, on the date this Plan is adopted by the Board, are members of the Board (the
“Incumbent Board”) cease for any reason to constitute at least a majority of the members of the Board; provided, however, that if the appointment or election (or nomination for election) of any new Board member was approved or
recommended by a majority vote of the members of the Incumbent Board then still in office, such new member shall, for purposes of this Plan, be considered as a member of the Incumbent Board. 

(f) “Code” means the Internal Revenue Code of 1986, as amended. 

(g) “Committee” means a committee appointed by the Board in accordance with Section 3(c). 

(h) “Common Stock” means the shares of common stock of the Company. 

  
 2 

 (i) “Company” means One Stop Systems, Inc., a Delaware
corporation. 
 (j) “Consultant” means any consultant or adviser if: 

(a) The consultant or adviser renders bona fide services to the Company or any Affiliate; 

(b) The services rendered by the consultant or adviser are not in connection with the offer or sale of securities in a capital-raising
transaction and do not directly or indirectly promote or maintain a market for the Company’s securities; and 
 (i) The consultant or
adviser is a natural person who has contracted directly with the Company or any Affiliate to render such services. 
 (k)
“Covered Employee” means an Employee who is, or is likely to become, a “covered employee” within the meaning of Section 162(m)(3) of the Code. 

(l) “Director” means a member of the Board. 

(m) “Disability” means total and permanent disability as defined in Section 22(e)(3) of the Code and as
interpreted by the Administrator in each case. 
 (n) “Effective Date” shall have the meaning given in
Section 18 herein. 
 (o) “Employee” means a regular employee of the Company or an Affiliate, including an
Officer or Director, who is treated as an employee in the personnel records of the Company or an Affiliate, but not individuals who are classified by the Company or an Affiliate as: (i) leased from or otherwise employed by a third party,
(ii) independent contractors, or (iii) intermittent or temporary workers. The Company’s or an Affiliate’s classification of an individual as an “Employee” (or as not an “Employee”) for purposes of this Plan
shall not be altered retroactively even if that classification is changed retroactively for another purpose as a result of an audit, litigation or otherwise. Neither service as a Director nor receipt of a director’s fee shall be sufficient to
make a Director an “Employee.” 
 (p) “Exchange Act” means the Securities Exchange Act of 1934, as amended
from time to time. 
 (q) “Fair Market Value” means, as of any date, the value of the Common Stock of the Company
determined as follows: 
 (i) If the Common Stock is then listed or admitted to trading on a Nasdaq market system or a stock exchange which
reports closing sale prices, the Fair Market Value shall be the closing sale price on the date of valuation on such Nasdaq market system or principal stock exchange on which the Common Stock is then listed or admitted to trading, or, if no closing
sale price is quoted on such day, then the Fair Market Value shall be the closing sale price of the Common Stock on such Nasdaq market system or such exchange on the next preceding day for which a closing sale price is reported; 

  
 3 

 (ii) If the Common Stock is not then listed or admitted to trading on a Nasdaq market system or a
stock exchange which reports closing sale prices, the Fair Market Value shall be the average of the closing bid and asked prices of the Common Stock in the
over-the-counter market on the date of valuation; or 

(iii) If neither (i) nor (ii) is applicable as of the date of valuation, then the Fair Market Value shall be determined by the
Administrator in good faith using any reasonable method of valuation, which determination shall be conclusive and binding on all interested parties. 

(r) “Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the meaning of
Section 422 of the Code and the regulations promulgated thereunder. 
 (s)
“Non-Employee Director” means a member of the Board who qualifies as a “Non-Employee Director” as defined in Rule 16b-3(b)(3) of the Exchange Act, or any successor rule. 
 (t) “Nonstatutory Stock
Option” means an Option not intended to qualify as an Incentive Stock Option. 
 (u)
“Officer” means any person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 

(v) “Option” means a stock option granted pursuant to the Plan. 

(w) “Option Agreement” means a written or electronic agreement between the Company and an Optionee evidencing the
terms and conditions of an individual Option grant. Each Option Agreement shall be subject to the terms and conditions of the Plan and any rules and regulations adopted by the Administrator and incorporated therein. 

(x) “Optionee” means the Participant to whom an Option is granted or, if applicable, such other person who holds an
outstanding Option. 
 (y) “Option Shares” means the shares of Common Stock of the Company issued or issuable
pursuant to the exercise of an Option. 
 (z) “Outside Director” means a Director who either (i) is not a
current employee of the Company or an “affiliated corporation” (within the meaning of Treasury Regulations promulgated under Section 162(m) of the Code), is not a former employee of the Company or an “affiliated corporation”
who receives compensation for prior services (other than benefits under a tax-qualified retirement plan) during the taxable year, has not been an officer of the Company or an “affiliated
corporation”, and does not receive remuneration from the Company or an “affiliated corporation,” either directly or indirectly, in any capacity other than as a Director or (ii) is otherwise considered an “outside
director” for purposes of Section 162(m) of the Code. 

  
 4 

 (aa) “Participant” means an Optionee or any other person to whom a Stock
Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Stock Award. 
 (bb)
“Performance-Based Award” means a Stock Award granted to selected Covered Employees pursuant to Article 7, but which is subject to the terms and conditions set forth in Article 8. 

(cc) “Performance Criteria” means the criteria that the Administrator selects for purposes of establishing the
Performance Goal or Performance Goals for a Participant for a Performance Period. The Performance Criteria that will be used to establish Performance Goals are limited to the following: net earnings (either before or after interest, taxes,
depreciation and amortization), sales or revenue, net income (either before or after taxes), operating earnings, cash flow (including, but not limited to, operating cash flow and free cash flow), return on net assets, return on stockholders’
equity, return on sales, gross or net profit margin, working capital, earnings per share and price per share of Common Stock, the achievement of certain milestones, customer retention rates, licensing, partnership or other strategic transactions,
obtaining a specified level of financing for the Company, as determined by the Administrator, including the issuance of securities, or the achievement of one or more corporate, divisional or individual scientific or inventive measures. Any of the
criteria identified above may be measured either in absolute terms or as compared to any incremental increase or as compared to results of a peer group. The Administrator shall, within the time prescribed by Section 162(m) of the Code, define
in an objective fashion the manner of calculating the Performance Criteria it selects to use for such Performance Period for such Participant. 

(dd) “Performance Goals” means, for a Performance Period, the goals established in writing by the Administrator for
the Performance Period based upon the Performance Criteria. Depending on the Performance Criteria used to establish such Performance Goals, the Performance Goals may be expressed in terms of overall Company performance or the performance of a
Subsidiary, division or other operational unit, or an individual. The Administrator, in its discretion, may, within the time prescribed by Section 162(m) of the Code, adjust or modify the calculation of Performance Goals for such Performance
Period in order to prevent the dilution or enlargement of the rights of Participants (i) in the event of, or in anticipation of, any unusual or extraordinary corporate item, transaction, event, or development, or (ii) in recognition of, or
in anticipation of, any other unusual or nonrecurring events affecting the Company, or the financial statements of the Company, or in response to, or in anticipation of, changes in applicable laws, regulations, accounting principles, or business
conditions. 
 (ee) “Performance Period” means the one or more periods of time, which may be of varying and
overlapping durations, as the Administrator may select, over which the attainment of one or more Performance Goals will be measured for the purpose of determining a Participant’s right to, and the payment of, a Performance-Based Award. 

(ff) “Plan” means this 2017 Equity Incentive Plan. 

  
 5 

 (gg) “Qualified Performance-Based Compensation” means any compensation
that is intended to qualify as “qualified performance-based compensation” as described in Section 162(m)(4)(C) of the Code 

(hh) “Restricted Stock” means Common Stock awarded to a Participant pursuant to Section 7(b) that is subject to
certain restrictions and may be subject to risk of forfeiture or repurchase. 
 (ii) “Restricted Stock Award
Agreement” means a written or electronic agreement between the Company and a Participant evidencing the terms and conditions of a Restricted Stock award. Each Restricted Stock Award Agreement shall be subject to the terms and conditions of
the Plan and any rules and regulations adopted by the Administrator and incorporated therein. 
 (jj) “Restricted Stock
Unit” means a right to receive a share of Common Stock during specified time periods granted pursuant to Section 7(c). 

(kk) “Securities Act” means the Securities Act of 1933, as amended. 

(ll) “Stock Award” means any right granted under the Plan, including an Option, a right to
acquire Restricted Stock, a Restricted Stock Unit, a Stock Bonus or a Performance-Based Award. 
 (mm) “Stock Award
Agreement” means any written or electronic agreement, including an Option Agreement, Stock Bonus Agreement, or Restricted Stock Award Agreement, between the Company and a holder of a Stock Award evidencing the terms and conditions of
an individual Stock Award grant. Each Stock Award Agreement shall be subject to the terms and conditions of the Plan and any additional rules and regulations adopted by the Administrator and incorporated therein. 

(nn) “Stock Bonus” means a payment in the form of shares of Common Stock, or as part of any bonus,
deferred compensation or other arrangement, made in lieu of all or any portion of the compensation, granted pursuant to Section 7(a). 

(oo) “Stock Bonus Agreement” means a written or electronic agreement between the Company and a Participant evidencing
the terms and conditions of a Stock Bonus. Each Stock Bonus Agreement shall be subject to the terms and conditions of the Plan and any rules and regulations adopted by the Administrator and incorporated therein. 

(pp) “Ten Percent Stockholder” means a person who owns (or is deemed to own pursuant to Section 424(d) of the
Code) stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of any of its Affiliates. 

(qq) “Termination of Service” means: 

(i) With respect to Stock Awards granted to a Participant in his or her capacity as an Employee, the time when the employer-employee
relationship between the 

  
 6 

 
Participant and the Company (or an Affiliate) is terminated for any reason, including, without limitation a termination by resignation, discharge, death or retirement; 

(ii) With respect to Stock Awards granted to a Participant in his or her capacity as a Director, the time when the Participant ceases to be a
Director for any reason, including without limitation a cessation by resignation, removal, failure to be reelected, death or retirement, but excluding cessations where there is a simultaneous or continuing employment of the former Director by the
Company (or an Affiliate) and the Administrator expressly deems such cessation not to be a Termination of Service; 
 (iii) With respect to
Stock Awards granted to a Participant in his or her capacity as a Consultant, the time when the contractual relationship between the Participant and the Company (or an Affiliate) is terminated for any reason; and 

(iv) With respect to Stock Awards granted to a Participant in his or her capacity as an Employee, Director or Consultant of an Affiliate, when
such entity ceases to qualify as an Affiliate under this Plan, unless earlier terminated as set forth above. 
 Notwithstanding anything to
the contrary herein set forth, a change in status from an Employee to a Consultant or from a Consultant to an Employee shall not constitute a Termination of Service for the purposes hereof, if and to the extent so determined by the Administrator.
The Administrator, in its sole and absolute discretion, shall determine the effect of all other matters and issues relating to a Termination of Service. 
  

	3.	ADMINISTRATION. 

 (a)
Administration by Board. The Plan shall be administered by the Administrator unless and until the Board delegates administration to a Committee or an Officer, as provided in Section 3(c) below. 

(b) Powers of the Administrator. The Administrator shall have the power, except as otherwise provided herein: 

(i) To determine from time to time (A) which of the persons eligible under the Plan shall be granted Stock Awards; (B) when and how
the Stock Awards shall be granted; (C) what type or combination of types of Stock Awards will be granted; (D) the terms and conditions of each Stock Award granted (which need not be identical), including, without limitation, the
transferability or repurchase of such Stock Awards or Award Shares issuable thereunder, as applicable, and the circumstances under which Stock Awards become exercisable or vested or are forfeited or expire, which terms may but need not be
conditioned upon the passage of time, continued employment, the satisfaction of performance criteria, the occurrence of certain events, or other factors; and (E) the number of Award Shares subject to a Stock Award that shall be granted to a
Participant. 
 (ii) To construe and interpret the Plan and Stock Awards granted under it, and to make exceptions to any such provisions in
good faith and for the benefit of the Company, and to establish, amend and revoke rules and regulations for the Plan’s administration. The Administrator, in the exercise of its power, may correct any defect, omission or inconsistency in

  
 7 

 
the Plan or in any Stock Award Agreement in a manner and to the extent it shall deem necessary or expedient to make the Plan fully effective. 

(iii) To settle all controversies regarding the Plan and Stock Awards granted under it. 

(iv) To accelerate the time at which a Stock Award may first be exercised or the time during which a Stock Award or any part thereof will vest
in accordance with the Plan, notwithstanding the provisions in the Stock Award stating the time at which it may first be exercised or the time during which it will vest. 

(v) To suspend or terminate the Plan at any time. Suspension or termination of the Plan shall not impair rights and obligations under any
Stock Award granted while the Plan is in effect except with the written consent of the affected Participant. 
 (vi) To submit any amendment
to the Plan for stockholder approval. 
 (vii) To amend the Plan in any respect the Administrator deems necessary or advisable to provide
Participants with the maximum benefits provided or to be provided under the provisions of the Code and the regulations promulgated thereunder relating to Incentive Stock Options or to bring the Plan or Incentive Stock Options granted under it into
compliance therewith. 
 (viii) To amend the terms of any one or more Stock Awards, including, but not limited to, amendments to provide
terms more favorable than previously provided in the Stock Award Agreement, subject to any specified limits in the Plan that are not subject to Administrator discretion; provided, however, that the rights under any Stock Award shall not be
impaired by any such amendment unless (a) the Company requests the consent of the affected Participant, and (b) such Participant consents in writing. Notwithstanding the foregoing, subject to the limitations of applicable law, if any, and
without the affected Participant’s consent, the Administrator may amend the terms of any one or more Stock Awards if necessary to maintain the qualified status of the Stock Award as an Incentive Stock Option or to bring the Stock Award into
compliance with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder. 

(ix) To amend the Plan as provided in Section 16. 

(x) To prescribe and amend the terms of the agreements or other documents evidencing Stock Awards made under this Plan (which need not be
identical). 
 (xi) To place such restrictions on the sale or other disposition of Award Shares as may be deemed appropriate by the
Administrator. 
 (xii) To determine whether, and the extent to which, adjustments are required pursuant to Section 11. 

(xiii) Generally, to exercise such powers and to perform such acts as the Administrator deems necessary or expedient to promote the best
interests of the Company. 

  
 8 

 (c) Delegation to a Committee. 

(i) General. The Board may delegate administration of the Plan to a committee of the Board composed of not fewer than two
(2) members (the “Committee”). If administration is delegated to a Committee, the Committee shall have, in connection with the administration of the Plan, the powers theretofore possessed by the Board (and references in the
Plan to the Administrator shall thereafter be deemed to be references to the Committee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. The Board may abolish
the Committee at any time and revest in the Board the administration of the Plan. Appointment of Committee members shall be effective upon acceptance of appointment. In its sole discretion, the Board may at any time and from time to time exercise
any and all rights and duties of the Administrator under the Plan except with respect to matters which under Rule 16b-3 under the Exchange Act or Section 162(m) of the Code, or any regulations or rules
issued thereunder, are required to be determined in the sole discretion of the Committee. Committee members may resign at any time by delivering written notice to the Board. Vacancies in the Committee may only be filled by the Board. 

(ii) Section 162(m) and Rule 16b-3 Compliance. In the discretion of the Board, the
Committee may consist solely of two or more Outside Directors, in accordance with Section 162(m) of the Code, and/or solely of two or more Non-Employee Directors, in accordance with Rule 16b-3 of the Exchange Act. In addition, the Board or the Committee, in its discretion, may (1) delegate to a committee of one or more members of the Board who need not be Outside Directors the authority to
grant Stock Awards to eligible persons who are either (a) not then Covered Employees and are not expected to be Covered Employees at the time of recognition of income resulting from such Stock Award, or (b) not persons with respect to whom
the Company wishes to comply with Section 162(m) of the Code, and/or (2) delegate to a committee of one or more members of the Board who need not be Non-Employee Directors the authority to grant
Stock Awards to eligible persons who are not then subject to Section 16 of the Exchange Act. 
 (d) Delegation to an
Officer. The board may delegate to one or more Officers of the Company the authority to do one or both of the following: (i) designate Officers and Employees of the Company or any of its Affiliates to be recipients of Stock Awards
and (ii) determine the number of shares of Common Stock to be subject to such Stock Awards granted to such Officers and Employees of the Company; provided, however, that the Board resolutions regarding such delegation shall specify the
total number of shares of Common Stock that may be subject to the Stock Awards granted by such Officer and that such Officer may not grant a Stock Award to himself or herself. Notwithstanding anything to the contrary in this Section 3(d),
the Board may not delegate to an Officer authority to determine the Fair Market Value of the Common Stock. 
 (e) Effect of
Change in Status. The Administrator shall have the absolute discretion to determine the effect upon a Stock Award, and upon an individual’s status as an Employee, Consultant or Director under the Plan, including whether a
Participant shall be deemed to have experienced a Termination of Service or other change in status, and upon the vesting, expiration or forfeiture of a Stock Award or Award Shares issuable in respect thereof, in the case of (i) a Termination of
Service for cause, (ii) any leave of absence approved by the Company or an Affiliate, (iii) any transfer between the Company and any Affiliate or between any Affiliates, (iii) 

  
 9 

 
any change in the Participant’s status from an Employee to a Consultant or member of the Administrator of Directors, or vice versa, and (v) any Employee who becomes employed by any
partnership, joint venture, corporation or other entity not meeting the requirements of an Affiliate. 
 (f) Determinations of
the Administrator. All decisions, determinations and interpretations by the Administrator regarding this Plan shall be final and binding on all Participants or other persons claiming rights under the Plan or any Stock Award. The
Administrator shall consider such factors as it deems relevant to making such decisions, determinations and interpretations including, without limitation, the recommendations or advice of any Director, Officer or Employee of the Company and such
attorneys, consultants and accountants as it may select. A Participant or other holder of a Stock Award may contest a decision or action by the Administrator with respect to such person or Stock 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 Administrator’s decision or action was arbitrary or capricious or was unlawful. 

(g) Arbitration. Any dispute or claim concerning any Stock Awards granted (or not granted) pursuant to the Plan or
any disputes or claims relating to or arising out of the Plan shall be fully, finally and exclusively resolved by binding and confidential arbitration conducted pursuant to the rules of Judicial Arbitration and Mediation Services, Inc.
(“JAMS”) in the County of San Diego, California. In addition to any other relief, the arbitrator may award to the prevailing party recovery of its attorneys’ fees and costs. By accepting a Stock Award, Participants and the
Company waive their respective rights to have any such disputes or claims tried by a judge or jury. 
  

	4.	SHARES SUBJECT TO THE PLAN; OVERALL LIMITATION. 

(a) Shares Subject to the Plan. Subject to the provisions of Section 11 relating to adjustments upon changes
in stock, the Award Shares that may be issued pursuant to Stock Awards shall not exceed in the aggregate One Million Five Hundred Thousand (1,500,000) shares of the Company’s Common Stock. Of such amount, One Million Five Hundred Thousand
(1,500,000) Award Shares may be issued pursuant to Incentive Stock Options. In the event that (a) all or any portion of any Stock Award granted or offered under the Plan can no longer under any circumstances be exercised or otherwise become
vested, or (b) any Award Shares are reacquired by the Company which were initially the subject of a Stock Award Agreement, the Award Shares allocable to the unexercised or unvested portion of such Stock Award, or the Award Shares so reacquired,
shall again be available for grant or issuance under the Plan. 
 (b) Individual Participant Limitations.
Notwithstanding any provision in the Plan to the contrary, and subject to Article 11 below, the maximum number of shares of Common Stock with respect to one or more Stock Awards that may be granted to any one Participant during any calendar year
shall be Five Hundred Thousand (500,000). 

  
 10 

	5.	ELIGIBILITY. 

 (a)
General. Incentive Stock Options may be granted only to Employees; all other Stock Awards may be granted only to Employees, Directors and Consultants. In the event a Participant is both an Employee and a Director, or a
Participant is both a Director and a Consultant, the Stock Award Agreement shall specify the capacity in which the Participant is granted the Stock Award; provided, however, if the Stock Award Agreement is silent as to such capacity, the
Stock Award shall be deemed to be granted to the Participant as an Employee or as a Consultant, as applicable. 
 (b) Ten
Percent Stockholders. A Ten Percent Stockholder shall not be granted an Incentive Stock Option unless the exercise price of such Option is at least one hundred ten percent (110%) of the Fair Market Value of the Common Stock at the
date of grant and the Option is not exercisable after the expiration of five (5) years from the date of grant. 
  

	6.	OPTION AGREEMENT PROVISIONS. 

Each Option shall be granted pursuant to a written Option Agreement, signed by an Officer of the Company and by the Optionee, which shall be in
such form and shall contain such terms and conditions as the Administrator shall deem appropriate. The provisions of separate Option Agreements need not be identical, but each Option Agreement shall include (through incorporation of the provisions
hereof by reference in the Option Agreement or otherwise) the substance of each of the following provisions (except to the extent that any such provision indicates it is permissible rather than mandatory): 

(a) Term. No Incentive Stock Option shall be exercisable after the expiration of ten (10) years from the date
of its grant or such shorter period specified in the Option Agreement; provided, however, that an Incentive Stock Option granted to a Ten Percent Stockholder shall be subject to the provisions of Section 5(b). 

(b) Exercise Price of an Option. Subject to the provisions of Section 5(b) regarding Incentive Stock Options
granted to Ten Percent Stockholders, the exercise price of each Incentive Stock Option shall be not less than the Fair Market Value of the Common Stock subject to the Option on the date the Option is granted. The Administrator shall determine the
exercise price of each Nonstatutory Stock Option. Notwithstanding the foregoing, an Incentive Stock Option may be granted with an exercise price lower than one hundred percent (100%) of the Fair Market Value of the Common Stock subject to the Option
if such Incentive Stock Option is granted pursuant to an assumption of or substitution for another option in a manner consistent with the provisions of Section 424(a) of the Code. 

(c) Consideration. The purchase price of Common Stock acquired pursuant to the exercise of an Option shall be
paid, to the extent permitted by applicable law and as determined by the Administrator in its sole discretion, by any combination of the methods of payment set forth below. The Administrator shall have the authority to grant Options that do not
permit all of the following methods of payment (or otherwise restrict the ability to use certain methods) and to grant Options that require the consent of the Company to utilize a particular method of payment. The methods of payment permitted by
this Section 6(c) are: 

  
 11 

 (i) by cash or check; 

(ii) pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Administrator that, prior to the issuance of
Common Stock, results in either the receipt of cash (or check) by the Company or the receipt of irrevocable instructions to pay the aggregate exercise price to the Company from the sales proceeds; 

(iii) by delivery to the Company (either by actual delivery or attestation) of shares of Common Stock; 

(iv) by a “net exercise” arrangement pursuant to which the Company will reduce the number of shares of Common Stock issued upon
exercise by the largest whole number of shares with a Fair Market Value that does not exceed the aggregate exercise price; provided, however, that the Company shall accept a cash or other payment from the Participant to the extent of any
remaining balance of the aggregate exercise price not satisfied by such reduction in the number of whole shares to be issued; provided, further, however, that shares of Common Stock will no longer be outstanding under an Option and
will not be exercisable thereafter to the extent that (A) shares are used to pay the exercise price pursuant to the “net exercise,” (B) shares are delivered to the Participant as a result of such exercise, and (C) shares are
withheld to satisfy tax withholding obligations; or 
 (v) in any other form of legal consideration that may be acceptable to the
Administrator. 
 (d) Transferability. The following restrictions on the transferability of Options shall apply: 

(i) Restrictions on Transfer. An Option shall not be transferable except by will or by the laws of descent and
distribution and shall be exercisable during the lifetime of the Optionee only by the Optionee; provided, however, that the Administrator may, in its sole discretion, permit transfer of the Option to a revocable trust. Notwithstanding the foregoing,
however, an Incentive Stock Option shall not be transferable other than by will or the laws of descent and distribution, and shall be exercisable only by the Optionee during the Optionee’s lifetime, except as otherwise permitted by the
Administrator and by Sections 421, 422 and 424 of the Code and the regulations and other guidance thereunder. 
 (ii) Domestic
Relations Orders. Notwithstanding the foregoing, an Option may be transferred pursuant to a domestic relations order; provided, however, that if an Option is an Incentive Stock Option, such Option shall be deemed to be a
Nonstatutory Stock Option as a result of such transfer. 
 (iii) Beneficiary Designation. Notwithstanding the
foregoing, the Optionee may, by delivering written notice to the Company, in a form provided by or otherwise satisfactory to the Company, designate a third party who, in the event of the death of the Optionee, shall thereafter be the beneficiary of
an Option with the right to exercise the Option and receive the Common Stock or other consideration resulting from an Option exercise. In the absence of such a designation, the executor or administrator of the Optionee’s estate shall be

  
 12 

 
entitled to exercise the Option and receive the Common Stock or other consideration resulting from an Option exercise. 

(e) Vesting. Each Option shall vest and become exercisable in one or more installments, at such time or times and subject
to such conditions, including without limitation the achievement of specified performance goals or objectives established with respect to one or more performance criteria, as shall be determined by the Administrator. 

(f) Termination of Service. In the event of the Termination of Service of an Optionee for any reason (other than for
“Cause,” as defined in an Option Agreement, or upon the Optionee’s death or Disability), the Optionee may exercise his or her Option, but only within such period of time as is set forth in the Option Agreement (and in no event later
than the expiration of the term of such Option as set forth in the Option Agreement). In the case of an Incentive Stock Option, such exercise period provided in the Option Agreement shall not exceed three (3) months from the date of
termination. 
 (g) Disability of Optionee. In the event of a Termination of Service of an Optionee as a
result of the Optionee’s Disability, the Optionee may exercise his or her Option within the period specified in the Option Agreement (in no event to exceed twelve (12) months from the date of such termination in the case of an Incentive
Stock Option), and only to the extent that the Optionee was entitled to exercise the Option at the date of such termination (but in no event later than the expiration of the term of such Option as set forth in the Option Agreement). 

(h) Death of Optionee. In the event that (i) an Optionee’s Termination of Service occurs as a
result of the Optionee’s death, or (ii) an Optionee dies within the period (if any) specified in the Option Agreement after the Optionee’s Termination of Service for a reason other than death, then, notwithstanding Section 6(f)
above, the Option may be exercised (to the extent the Optionee was entitled to exercise such Option as of the date of death) by the Optionee’s estate, by a person who acquired the right to exercise the Option by bequest or inheritance or by a
person designated to exercise the option upon the Optionee’s death, but only within the period ending on the earlier of (i) the date that is twelve (12) months after the date of Termination of Service, or (ii) the expiration of
the term of such Option as set forth in the Option Agreement. 
 (i) Termination for Cause. In the
event of the Termination of Service of an Optionee for Cause, except as otherwise determined by the Administrator in the specific situation, all Options granted to such Optionee shall expire as set forth in the Option Agreement. 

(j) Extension of Termination Date. An Optionee’s Option Agreement may provide that if the exercise of the Option
following an Optionee’s Termination of Service (other than for Cause or upon the Optionee’s death or Disability) would be prohibited at any time solely because the issuance of shares of Common Stock would violate the registration
requirements under the Securities Act, then the Option shall terminate on the earlier of (i) the expiration of a period of three (3) months after the termination of the Optionee’s Continuous Service during which the exercise of the
Option would not be in violation of such registration requirements, or (ii) the expiration of the term of the Option as set forth in the Option Agreement. 

  
 13 

 (k) Non-Exempt Employees. Unless
otherwise determined by the Administrator of Directors, no Option granted to an Employee that is a non-exempt employee for purposes of the Fair Labor Standards Act of 1938, as amended, shall be first
exercisable for any shares of Common Stock until at least six months following the date of grant of the Option. The foregoing provision is intended to operate so that any income derived by a non-exempt
employee in connection with the exercise or vesting of an Option will be exempt from his or her regular rate of pay. 
 (l)
Early Exercise. The Option may, but need not, include a provision whereby the Optionee may elect at any time prior to a Termination of Service to exercise the Option as to any part or all of the Option Shares prior to the full vesting
of the Option. Any unvested Option Shares so purchased may be subject to an unvested share repurchase option in favor of the Company or to any other restriction the Administrator determines to be appropriate. 

 

	7.	PROVISIONS OF STOCK AWARDS OTHER THAN OPTIONS. 

(a) Stock Bonus Awards. Stock Bonus awards shall be made pursuant to Stock Bonus Agreements in such form and
containing such terms and conditions as the Administrator shall deem appropriate. The terms and conditions of Stock Bonus Agreements may change from time to time, and the terms and conditions of separate Stock Bonus Agreements need not be identical,
but each Stock Bonus Agreement shall include (through incorporation of provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions (except to the extent that any such provision indicates it is
permissible rather than mandatory): 
 (i) Consideration. A Stock Bonus may be awarded in consideration for past
services actually rendered to the Company or an Affiliate for its benefit, provided that the Participant remains eligible to receive Stock Awards hereunder at the time of the award. 

(ii) Vesting. Award Shares issued pursuant to a Stock Bonus Agreement may, but need not, be subject to a share repurchase
option in favor of the Company in accordance with a vesting schedule to be determined by the Administrator. 
 (iii) Termination of
Service. In the event of a Termination of Service, the Company may reacquire any or all of the Award Shares held by the Participant which have or have not vested as of the date of termination under the terms of the Stock Bonus
Agreement. 
 (iv) Transferability. Unless otherwise determined by the Administrator, rights to acquire Award Shares
under the Stock Bonus Agreement shall not be transferable except by will or by the laws of descent and distribution, or, to the extent permitted by the Administrator, to a revocable trust. 

(b) Restricted Stock Awards. Each Restricted Stock award shall be made pursuant to a Restricted
Stock Award Agreement in such form and containing such terms and conditions as the Administrator shall deem appropriate. The terms and conditions of the Restricted Stock Award Agreements may change from time to time, and the terms and conditions of
separate Restricted Stock Award Agreements need not be identical, but each Restricted Stock Award Agreement shall include (through incorporation of provisions hereof by reference in the 

  
 14 

 
agreement or otherwise) the substance of each of the following provisions (except to the extent that any such provision indicates it is permissible rather than mandatory): 

(i) Purchase Price. The purchase price under each Restricted Stock Award Agreement shall be such amount as the
Administrator shall determine and designate in such Restricted Stock Award Agreement, including no consideration or such minimum consideration as may be required by applicable law. 

(ii) Consideration. The purchase price of Common Stock acquired pursuant to the Restricted Stock Award Agreement, if any,
shall be paid either: (a) in cash at the time of purchase; (b) at the discretion of the Administrator, according to a deferred payment or other similar arrangement with the Participant; or (c) in any other form of legal consideration
that may be acceptable to the Administrator in its discretion. 
 (iii) Vesting. Award Shares acquired under the
Restricted Stock Award Agreement may, but need not, be subject to a share repurchase option in favor of the Company in accordance with a vesting schedule to be determined by the Administrator. 

(iv) Termination of Service. In the event of a Participant’s Termination of Service, the Company may repurchase or
otherwise reacquire any or all of the Award Shares held by the Participant which have or have not vested as of the date of termination under the terms of the Restricted Stock Award Agreement. 

(v) Transferability. Unless otherwise determined by the Administrator, rights to acquire Award Shares under the
Restricted Stock Award Agreement shall not be transferable except by will, by the laws of descent and distribution, or, to the extent permitted by the Administrator, to a revocable trust. 

(c) Restricted Stock Units. The Administrator is authorized to make Awards of Restricted Stock Units to any
Participant selected by the Administrator in such amounts and subject to such terms and conditions as determined by the Administrator. At the time of grant, the Administrator shall specify the date or dates on which the Restricted Stock Units shall
become fully vested and nonforfeitable, and may specify such conditions to vesting as it deems appropriate. Alternatively, Restricted Stock Units may become fully vested and nonforfeitable pursuant to the satisfaction of one or more Performance
Goals or other specific performance goals as the Administrator determines to be appropriate at the time of the grant of the Restricted Stock Units or thereafter, in each case on a specified date or dates or over any period or periods determined by
the Administrator. At the time of grant, the Administrator shall specify the maturity date applicable to each grant of Restricted Stock Units which shall be no earlier than the vesting date or dates of the Award and may be determined at the election
of the Participant to whom the Award is granted. On the maturity date, the Company shall transfer to the Participant one unrestricted, fully transferable share of Stock for each Restricted Stock Unit that is vested and scheduled to be distributed on
such date and not previously forfeited. The Administrator shall specify the purchase price, if any, to be paid by the Participant to the Company for such shares of Stock. All Restricted Stock Unit awards shall be subject to such additional terms and
conditions as determined by the Administrator and shall be evidenced by a written Stock Award Agreement. 

  
 15 

	8.	PERFORMANCE-BASED AWARDS. 

(a) Purpose. The purpose of this Article 8 is to provide the Administrator the ability to qualify Stock Awards
other than Options as Qualified Performance-Based Compensation. If the Administrator, in its discretion, decides to grant a Performance-Based Award to a Covered Employee, the provisions of this Article 8 shall control over any contrary provision
contained in Article 7; provided, however, that the Administrator may in its discretion grant Stock Awards to Covered Employees that are based on Performance Criteria or Performance Goals but that do not satisfy the requirements of this
Article 8. 
 (b) Applicability. This Article 8 shall apply only to those Covered Employees selected by the
Administrator to receive Performance-Based Awards. The designation of a Covered Employee as a Participant for a Performance Period shall not in any manner entitle the Participant to receive an Award for the period. Moreover, designation of a Covered
Employee as a Participant for a particular Performance Period shall not require designation of such Covered Employee as a Participant in any subsequent Performance Period and designation of one Covered Employee as a Participant shall not require
designation of any other Covered Employees as a Participant in such period or in any other period. 
 (c) Procedures with
Respect to Performance-Based Awards. To the extent necessary to comply with the Qualified Performance-Based Compensation requirements of Section 162(m)(4)(C) of the Code, with respect to any Award granted under Article 7 which
may be granted to one or more Covered Employees, no later than ninety (90) days following the commencement of any fiscal year in question or any other designated fiscal period or period of service (or such other time as may be required or
permitted by Section 162(m) of the Code), the Administrator shall, in writing, (a) designate one or more Covered Employees, (b) select the Performance Criteria applicable to the Performance Period, (c) establish the Performance
Goals, and amounts of such Awards, as applicable, which may be earned for such Performance Period, and (d) specify the relationship between Performance Criteria and the Performance Goals and the amounts of such Awards, as applicable, to be
earned by each Covered Employee for such Performance Period. Following the completion of each Performance Period, the Administrator shall certify in writing whether the applicable Performance Goals have been achieved for such Performance Period. In
determining the amount earned by a Covered Employee, the Administrator shall have the right to reduce or eliminate (but not to increase) the amount payable at a given level of performance to take into account additional factors that the
Administrator may deem relevant to the assessment of individual or corporate performance for the Performance Period. 
 (d)
Payment of Performance-Based Awards. Unless otherwise provided in the applicable Stock Award Agreement, a Participant must be employed by the Company or a Parent or Subsidiary on the day a Performance-Based Award for such
Performance Period is paid to the Participant. Furthermore, a Participant shall be eligible to receive payment pursuant to a Performance-Based Award for a Performance Period only if the Performance Goals for such period are achieved. 

(e) Additional Limitations. Notwithstanding any other provision of the Plan, any Award which is granted to a
Covered Employee and is intended to constitute Qualified 

  
 16 

 
Performance-Based Compensation shall be subject to any additional limitations set forth in Section 162(m) of the Code (including any amendment to Section 162(m) of the Code) or any
regulations or rulings issued thereunder that are requirements for qualification as qualified performance-based compensation as described in Section 162(m)(4)(C) of the Code, and the Plan shall be deemed amended to the extent necessary to
conform to such requirements. 
  

	9.	COVENANTS OF THE COMPANY. 

(a) Availability of Shares. During the terms of the Stock Awards, the Company shall keep available at all times the
number of shares of Common Stock required to satisfy such Stock Awards. 
 (b) Compliance with Laws and Regulations.
This Plan, the grant and exercise of Stock Awards thereunder, and the obligation of the Company to sell, issue or deliver Award Shares under such Stock Awards, shall be subject to all applicable federal, state and local laws, rules and regulations
and to such approvals by any governmental or regulatory agency as may be required. The Company shall not be required to register in a Participant’s name or deliver any Award Shares prior to the completion of any registration or qualification of
such Shares under any federal, state or local law or any ruling or regulation of any government body which the Administrator shall determine to be necessary or advisable. To the extent the Company is unable to or the Administrator deems it
infeasible to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary or advisable for the lawful issuance and sale of any Award Shares hereunder, the Company shall be
relieved of any liability with respect to the failure to issue or sell such Award Shares as to which such requisite authority shall not have been obtained. No Option shall be exercisable and no Award Shares shall be issued and/or transferable under
any other Stock Award unless a registration statement with respect to the Award Shares underlying such Stock Award is effective and current or the Company has determined that such registration is unnecessary. 

 

	10.	USE OF PROCEEDS. 

Proceeds from the sale of Award Shares shall constitute general funds of the Company and shall be used for general operating capital of the
Company. 
  

	11.	ADJUSTMENTS UPON CHANGE IN COMMON STOCK. 

If any change is made in the Common Stock subject to the Plan or subject to any Stock Award without the receipt of consideration by the Company
(through merger, consolidation, reorganization, recapitalization, reclassification, stock dividend, dividend in property other than cash, stock split, reverse stock split, liquidating dividend, exchange of shares, change in corporate structure or
other distribution of the Company’s equity securities), the Plan and all outstanding Stock Awards will be appropriately adjusted in the class and maximum number of shares subject to the Plan and the class and number of shares and price per
share of Common Stock subject to outstanding Stock Awards. Such adjustment shall be made by the Administrator, the determination of which shall be final, binding and conclusive. 

 

	12.	ADJUSTMENTS UPON CHANGE IN CONTROL. 

  
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 (a) The Administrator shall have the discretion to provide in each Stock Award Agreement
the terms and conditions that relate to (i) vesting of such Stock Award in the event of a Change in Control, and (ii) assumption of such Stock Award Agreements or issuance of comparable securities under an incentive program in the event of
a Change in Control. The aforementioned terms and conditions may vary in each Stock Award Agreement. 
 (b) If the terms of an
outstanding Option Agreement provide for accelerated vesting in the event of a Change in Control, or to the extent that an Option is vested and not yet exercised, the Administrator in its discretion may provide, in connection with the Change in
Control transaction, for the purchase or exchange of each Option for an amount of cash or other property having a value equal to the difference (or “spread”) between: (x) the value of the cash or other property that the Optionee would
have received pursuant to the Change in Control transaction in exchange for the vested Option Shares issuable upon exercise of the Option had the Option been exercised immediately prior to the Change in Control, and (y) the aggregate exercise
price of the vested Option Shares. If in such case the aggregate exercise price of the vested Option Shares is greater than or equal to the value of the cash or other property that the Optionee would have received pursuant to the Change in Control
transaction in exchange for the vested Option Shares had the Option been exercised immediately prior to the Change in Control, then the Option shall be cancelled and Optionee shall receive no payment for such Option Shares. Upon such purchase,
exchange or cancellation, the Option shall be terminated and Optionee shall have no further rights with respect to such Option. 

(c) Outstanding Options shall terminate and cease to be exercisable upon consummation of a Change in Control except to the extent that
the Options are assumed by the successor entity (or parent thereof) pursuant to the terms of the Change in Control transaction. 
 13.
ACCELERATION OF EXERCISABILITY AND VESTING. 

The Administrator shall have the power to accelerate the time at which any or all Stock Awards may first be exercised or the time during which
any or all Stock Awards or any part thereof will vest in accordance with the Plan, notwithstanding the provisions in any Stock Award stating the time at which it may first be exercised or the time during which it will vest. By approval of the Plan,
the Company’s stockholders consent to any such accelerations in the Administrator’s sole discretion. 
  

	14.	DISSOLUTION OR LIQUIDATION. 

In the event of a dissolution or liquidation of the Company, then all outstanding Stock Awards shall terminate immediately prior to such event.

  

	15.	MISCELLANEOUS. 

 (a)
Stockholder Rights. Neither a Participant nor any person to whom a Stock Award is transferred shall be deemed to be the holder of, or to have any of the rights of a holder with respect to, any Award Shares unless and until such
person has satisfied all requirements for exercise of the Stock Award pursuant to its terms and the Company has duly issued a stock certificate for such Award Shares. 

  
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 (b) No Employment or Other Service Rights. Nothing in the Plan or any
Stock Award Agreement shall confer upon any Participant any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the Stock Award was granted or shall affect the right of the Company or an Affiliate to
terminate (i) the employment of an Employee with or without notice and with or without Cause; (ii) the service of a Consultant pursuant to the terms of such Consultant’s agreement with the Company or an Affiliate; or (iii) the
service of a Director pursuant to the Bylaws or Certificate of Incorporation of the Company or an Affiliate, and any applicable provisions of the corporate law of the state in which the Company or the Affiliate is incorporated, as the case may be.

 (c) Incentive Stock Option $100,000 Limitation. To the extent that the aggregate Fair Market Value
(determined at the time of grant) of Common Stock with respect to which Incentive Stock Options are exercisable for the first time by any Optionee during any calendar year (under all plans of the Company and any Affiliates) exceeds One Hundred
Thousand Dollars ($100,000), the Options or portions thereof that exceed such limit (according to the order in which they were granted) shall be treated as Nonstatutory Stock Options, notwithstanding any contrary provision of the applicable Option
Agreement(s). 
 (d) Withholding Obligations. The Company may, in its sole discretion, satisfy any federal,
state or local tax withholding obligation relating to a Stock Award by any of the following means (in addition to the Company’s right to withhold from any compensation paid to the Participant by the Company) or by a combination of such means:
(i) causing the Participant to tender a cash payment; (ii) withholding shares of Common Stock from the shares of Common Stock issued or otherwise issuable to the Participant in connection with the Stock Award, provided that no shares of
Common Stock are withheld with a value exceeding the minimum amount of tax required to be withheld by law (or such lower amount as may be necessary to avoid classification of the Stock Award as a liability); or (iii) by such other method as may
be set forth in the Stock Award Agreement. 
 (e) Compliance with Section 409A of the
Code. To the extent applicable, the Plan and Stock Award Agreements shall be interpreted in accordance with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder,
including without limitation any such regulations or other guidance that may be issued or amended after the Effective Date (as defined in Section 18 below). Notwithstanding any provision of the Plan or Stock Award to the contrary, in the event
that following the Effective Date the Administrator determines that any Stock Award may be subject to Section 409A of the Code and related Department of Treasury guidance (including such Department of Treasury guidance as may be issued after
the Effective Date), the Administrator may adopt such amendments to the Plan and the applicable Stock Award Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other
actions, that the Administrator determines are necessary or appropriate to (i) exempt the Stock Award from Section 409A of the Code and/or preserve the intended tax treatment of the benefits provided with respect to the Stock Award; or
(ii) comply with the requirements of Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued
or amended after the Effective Date. 

  
 19 

	16.	AMENDMENT OF THE PLAN. 

(a) In General. The Administrator at any time, and from time to time, may amend the Plan. However, no amendment shall be
effective unless approved by the stockholders of the Company within twelve (12) months before or after the adoption of the amendment where the amendment will: 

(i) Increase the number of shares reserved for Stock Awards under the Plan, except as provided in Section 11 relating to adjustments upon
changes in Common Stock; 
 (ii) Modify the requirements as to eligibility for participation in the Plan (to the extent such modification
requires stockholder approval in order for the Plan to satisfy the requirements of Section 422 of the Code); or 
 (iii) Modify the
Plan in any other way if such modification requires stockholder approval in order for the Plan to satisfy the requirements of Section 422 of the Code. 

(b) Amendment to Maximize Benefits. It is expressly contemplated that the Administrator may amend the Plan in any
respect the Administrator deems necessary or advisable to provide Participants with the maximum benefits provided or to be provided under the provisions of the Code and the regulations promulgated thereunder relating to Incentive Stock Options
and/or to bring the Plan and/or Incentive Stock Options granted under the Plan into compliance therewith. 
 (c) No
Impairment. The rights and obligations under any Stock Award granted before any amendment of the Plan shall not be altered or impaired by such amendment unless the Company requests the consent of the person to whom the Stock Award was
granted and such person consents in writing; provided, however, that notwithstanding anything to the contrary in this Section 16 or elsewhere in this Plan, no such consent shall be required with respect to any amendment or
alteration if the Administrator determines in its sole discretion that such amendment or alteration either (i) is required or advisable in order for the Company, the Plan or the Stock Award to satisfy or conform to any law or regulation or to
meet the requirements of any accounting standard, or (ii) is not reasonably likely to significantly diminish the benefits provided under such Award, or that any such diminishment has been adequately compensated. 

17. TERMINATION OR SUSPENSION OF THE
PLAN. 
 (a) Termination or Suspension. The Board may suspend or terminate the
Plan at any time. Unless sooner terminated, the Plan shall terminate on October 9, 2027 (which shall be within ten (10) years from the date the Plan is adopted by the Board or approved by the stockholders of the Company, whichever is
earlier), and no Stock Awards may be granted under the Plan while the Plan is suspended or after it is terminated, but Stock Awards and Stock Award Agreements then outstanding shall continue in effect in accordance with their respective terms. 

(b) No Impairment. Rights and obligations under any Stock Award granted while the Plan is in effect shall not be altered
or impaired by suspension or termination of the Plan, except as otherwise provided herein or with the consent of the person to whom the Stock Award was granted. 

  
 20 

	18.	EFFECTIVE DATE OF PLAN. 

The Plan became effective on October 10, 2017, which is the date that the Plan was originally adopted by the Board (the “Effective
Date”). 
  

	19.	NON-EXCLUSIVITY OF THE PLAN

 Neither the adoption of this Plan by the Board nor the submission of this Plan to the stockholders of the Company for
approval shall be construed as creating any limitations on the power of the Board to adopt such other incentive arrangements as either may deem desirable, including, without limitation, the granting of stock options or restricted stock otherwise
than under this Plan, and such arrangements may be either generally applicable or applicable only in specific cases. 
  

	20.	LIABILITY OF THE COMPANY. 

The Company and the members of the Board shall not be liable to a Participant or any other persons as to: (a) the non-issuance or non-transfer, or any delay of issuance or transfer, of any Award Shares which results from the inability of the Company to comply with, or to obtain, or from
any delay in obtaining from any regulatory body having jurisdiction, all requisite authority to issue or transfer Award Shares if counsel for the Company deems such authority reasonably necessary for lawful issuance or transfer of any such shares
and, in furtherance thereof, appropriate legends may be placed on the stock certificates evidencing Award Shares to reflect such transfer restrictions; and (b) 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 Stock Award granted hereunder. 
  

	21.	CHOICE OF LAW. 

The laws of the State of Delaware shall govern all questions concerning the construction, validity and interpretation of this Plan, without
regard to such state’s conflict of laws rules. 

  
 21 

 ATTACHMENT I 

OPTION AGREEMENT 

 STOCK OPTION AGREEMENT 

(INCENTIVE STOCK OPTION OR NONSTATUTORY STOCK
OPTION) 
 ONE STOP SYSTEMS, INC. 2017
EQUITY INCENTIVE PLAN 
 Effective as of October 10, 2017 

Pursuant to the Stock Option Grant Notice (“Grant Notice”) and this Option Agreement (“Option Agreement”),
One Stop Systems, Inc., a Delaware corporation (the “Company”) has granted to Optionee an option under its 2017 Equity Incentive Plan (the “Plan”), to purchase the number of shares of the Company’s Common Stock
indicated in Optionee’s Grant Notice, at the exercise price indicated in such Grant Notice. This Option Agreement is incorporated by reference into and made a part of the Grant Notice. Whenever capitalized terms are used in this Option
Agreement, they shall have the meaning specified (i) in the Plan, (ii) in the relevant Grant Notice, or (iii) below, unless the context clearly indicates to the contrary. 

The details of the Option granted to Optionee are as follows: 

1. Term of Option. Subject to the maximum time limitations in Sections 5(b) and 6(a) of the Plan, the term of the
Option shall be the period commencing on the Date of Grant and ending on the Expiration Date (as defined in the Grant Notice), unless terminated earlier as provided herein or in the Plan. 

2. Exercise Price. The Exercise Price of the Option granted hereby shall be as provided in the Grant Notice. 

3. Exercise of Option. 

(a) The Grant Notice sets forth the rate at which the Option Shares shall become subject to purchase (“vest”) by Optionee.

 (b) In the event of a Change in Control of the Company, except as otherwise may be provided in the Plan or Grant Notice, the vesting of
the Option shall not accelerate, and the Option shall terminate if not exercised (to the extent then vested and exercisable) at or prior to such Change in Control. 

(c) Optionee shall exercise the Option, to the extent exercisable, in whole or in part, by sending written notice to the Company on a Notice
of Exercise in the form attached to the Grant Notice of his or her intention to purchase Option Shares hereunder, together with a check in the amount of the full purchase price of the Option Shares to be purchased, or such other form of payment as
permitted by the Grant Notice. Except as otherwise consented to by the Company, Optionee shall not exercise the Option at any one time with respect to less than five percent (5%) of the total Option Shares set forth in the Grant Notice unless
Optionee exercises all of the Option then vested and exercisable. 

 (d) If the Option is an Incentive Stock Option, by Optionee’s exercise of the Option,
Optionee agrees that he or she will notify the Company in writing within fifteen (15) days after the date of any disposition of any of the shares of the Common Stock issued upon exercise of the Option that occurs within two (2) years after
the date of the Date of Grant or within one (1) year after such shares of Common Stock are transferred upon exercise of the Option. 

(e) Optionee agrees to complete and execute any additional documents which the Company reasonably requests that Optionee complete in order to
comply with applicable federal, state and local securities laws, rules and regulations. 
 (f) Subject to the Company’s compliance with
all applicable laws, rules and regulations relating to the issuance of such Option Shares and Optionee’s compliance with all the terms and conditions of the Grant Notice, this Option Agreement, and the Plan, the Company shall promptly deliver
the Option Shares to Optionee. 
 (g) Except as otherwise provided herein or in the Plan, the Option may be exercised during the lifetime of
Optionee only by Optionee. 
 (h) In the event that Optionee is an Employee eligible for overtime compensation under the Fair Labor
Standards Act of 1938, as amended (i.e., a “Non-Exempt Employee”), Optionee may not exercise his or her Option until the later of (i) the date that he or she shall have completed
at least six (6) months of service to the Company measured from the Date of Grant specified in Optionee’s Grant Notice, or (ii) the date set forth in the Grant Notice for when the Option is first exercisable. 

4. Exercise Prior to Vesting (“Early Exercise”). If expressly permitted by the Grant Notice and subject
to the provisions of this Option Agreement, Optionee may, at any time that is both (i) prior to a Termination of Service; and (ii) prior to the Expiration Date, elect to exercise all or part of the Option, including the nonvested portion
of the Option; provided, however, that: 
 (a) a partial exercise of the Option shall be deemed to cover first any vested Option
Shares and then the earliest vesting installment(s) of unvested Option Shares; 
 (b) any Option Shares so purchased from installments which
have not vested as of the date of exercise shall be subject to a purchase option in favor of the Company, pursuant to an Early Exercise Stock Purchase Agreement in form satisfactory to the Company; 

(c) Optionee shall enter into the Early Exercise Stock Purchase Agreement with a vesting schedule that will result in the same vesting as if
no early exercise had occurred; and 
 (d) as provided in the Plan, if the Option is an Incentive Stock Option, to the extent that the
aggregate Fair Market Value (determined at the time of grant) of Common Stock with respect to which the Option plus all other Incentive Stock Options held by Optionee are exercisable for the first time during any calendar year (under all plans of
the Company and its Affiliates) exceeds One Hundred Thousand Dollars ($100,000), the Options or portions thereof 

  
 2 

 
that exceed such limit (according to the order in which they were granted) shall be treated as Nonstatutory Stock Options. 

5. Option Not Transferable. The Option granted hereunder shall not be transferable in any manner other than as
provided in Section 6(d) of the Plan. More particularly (but without limiting the foregoing), the Option may not be assigned, transferred (except as expressly provided in the Plan), pledged or hypothecated in any way, shall not be assignable by
operation of law and shall not be subject to execution, attachment or similar process. Any attempted assignment, transfer, pledge, hypothecation or other disposition of the Option contrary to the provisions hereof, or the levy of any execution,
attachment or similar process upon the Option, shall be null and void and without effect. 
 6. Termination of Option. 

(a) To the extent not previously exercised, the Option shall terminate on the Expiration Date; provided, however, that except as
otherwise provided in this Section 6, the Option may not be exercised more than sixty (60) days after the Termination of Service of Optionee for any reason (other than for Cause, as defined below, or upon Optionee’s
death or Disability). Within such sixty (60)-day period, except as may otherwise be specifically provided in this Option Agreement or any other agreement between Optionee and the Company which has been approved by the Board, Optionee may
exercise the Option only to the extent the same was exercisable on the date of such termination and said right to exercise shall terminate at the end of such period. 

(b) In the event of the Termination of Service of Optionee as a result of Optionee’s Disability, the Option shall be exercisable for a
period of six (6) months from the date of such termination, but in no event later than the Expiration Date and only to the extent that the Option was exercisable on the date of such termination. 

(c) In the event of the Termination of Service of Optionee as a result of Optionee’s death, the Option shall be exercisable by
Optionee’s estate (or by the person who acquires the right to exercise the Option by will or by the laws of descent and distribution) for a period of twelve (12) months from the date of such termination, but in no event later than the
Expiration Date and only to the extent that Optionee was entitled to exercise the Option on the date of death. 
 (d) In the event of the
Termination of Service of Optionee for Cause (as defined below), unless otherwise determined by the Board, (A) the Option shall expire as of the date of the first occurrence giving rise to such termination or upon the Expiration Date, whichever
is earlier; (B) Optionee shall have no rights with respect to any unexercised portion of the Option; and (C) any Option Shares issued in respect of the exercise of the Option on or after the date of the first act and/or event constituting
Cause shall have occurred shall be deemed to have been issued in respect of an expired option, and shall thereupon be deemed null and void ab initio, and Optionee shall have no claims to, or rights in, any such Option Shares.
“Cause” means with respect to Optionee, the occurrence of any of the following events, as reasonably determined by the Board in each case: (i) Optionee’s commission of any felony or any crime

  
 3 

 
involving fraud, dishonesty or moral turpitude under the laws of the United States or any state thereof; (ii) Optionee’s commission, or attempted commission, of, or participation in, a
fraud or act of dishonesty against the Company or any Affiliate, or any of their respective employees, officers or directors; (iii) Optionee’s intentional, material violation of any contract or agreement between the Optionee and the
Company or any Affiliate or of any statutory duty owed to the Company or any Affiliate; (iv) Optionee’s unauthorized use or disclosure of the Company’s or an Affiliate’s material confidential information or trade secrets;
(v) Optionee’s gross misconduct in connection with Optionee’s service to the Company or an Affiliate; or (vi) Optionee’s failure to promptly return all documents and other tangible items belonging to the Company or its
Affiliates in the Participant’s possession or control, including all complete or partial copies, recordings, abstracts, notes or reproductions of any kind made from or about such documents or information contained therein, upon a Termination of
Service for any reason. “Cause” shall not require that a civil judgment or criminal conviction have been entered against, or guilty plea shall have been made by, Optionee regarding any of the matters referred to in clauses (i) through
(vi). Accordingly, the Board shall be entitled to determine “Cause” based on the its good faith belief. If the Optionee is criminally charged with a felony or similar offense, that shall be a sufficient, but not a necessary, basis for such
a belief. Unless otherwise specifically provided in the Grant Notice, the foregoing definition of “Cause” shall apply for all purposes relating to the Option, notwithstanding any employment or other agreement by and between Optionee and
the Company or any Affiliate thereof that defines a termination on account of “Cause” (or a term having similar meaning). 
 (e)
Notwithstanding the foregoing, the Option is subject to earlier termination upon a Change in Control, as provided in Section 3(b) above and in Section 11 of the Plan, or upon the dissolution of the Company. If the Option will terminate in
connection with a Change in Control, the Company shall provide written notice to Optionee of a proposed transaction constituting a Change in Control, not less than ten (10) days prior to the anticipated effective date of the proposed
transaction. 
 (f) Notwithstanding anything herein to the contrary, no portion of any Option which is not exercisable by Optionee upon the
Termination of Service of such Optionee shall thereafter become exercisable, regardless of the reason for such termination, except as may otherwise be specifically provided in this Option Agreement or any other agreement between Optionee and the
Company which has been approved by the Board. 
 7. No Right to Continued Service. The Option does not confer
upon Optionee any right to continue as an Employee or Director of, or Consultant to, the Company or an Affiliate, nor does it limit in any way the right of the Company or an Affiliate to terminate Optionee’s employment or other relationship
with the Company or an Affiliate, at any time, with or without Cause. 
 8. Notice of Tax Election. If Optionee
makes any tax election relating to the treatment of the Option Shares under the Internal Revenue Code of 1986, as amended, Optionee shall promptly notify the Company of such election. 

9. Acknowledgments of Optionee. Optionee acknowledges and agrees that: 

  
 4 

 (a) Although the Company has made a good faith attempt to qualify the Option as an incentive
stock option within the meaning of Sections 421, 422 and 424 of the Code (if the Grant Notice provides that the Option is an Incentive Stock Option), the Company does not warrant that the Option granted herein constitutes an “incentive stock
option” within the meaning of such sections, or that the transfer of Option Shares will be treated for federal income tax purposes as specified in Section 421 of the Code. 

(b) Optionee shall notify the Company in writing within fifteen (15) days of each disposition (including a sale, exchange, gift or a
transfer of legal title) of the Option Shares made within two years after the issuance of such Option Shares. 
 (c) If the Grant Notice
provides that the Option is an Incentive Stock Option, Optionee understands that if, among other things, he or she disposes of any Option Shares granted within two years of the granting of the Option to him or her or within one year of the issuance
of such shares to him or her, then such Option Shares will not qualify for the beneficial treatment which Optionee might otherwise receive under Sections 421 and 422 of the Code. 

(d) Optionee and his or her transferees shall have no rights as a shareholder with respect to any Option Shares until the date of the issuance
of a stock certificate evidencing such Option Shares. No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions or other rights for which the record date is prior to the
date such stock certificate is issued, except as provided in Section 10 of the Plan. 
 (e) Certificates representing Option Shares
acquired pursuant to the exercise of Incentive Stock Options shall be imprinted with the following legend: 
 THE SHARES EVIDENCED BY THIS
CERTIFICATE WERE ISSUED BY THE CORPORATION TO THE REGISTERED HOLDER UPON EXERCISE OF AN INCENTIVE STOCK OPTION AS DEFINED IN SECTION 422 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (“ISO”). IN ORDER TO OBTAIN THE PREFERENTIAL TAX
TREATMENT AFFORDED TO ISOs, THE SHARES SHOULD NOT BE TRANSFERRED PRIOR TO THE LATER OF (A) TWO YEARS AFTER THE DATE OF GRANT OF SUCH ISO, OR (B) ONE YEAR AFTER THE DATE OF EXERCISE OF SUCH ISO. SHOULD THE REGISTERED HOLDER ELECT TO
TRANSFER ANY OF THE SHARES PRIOR TO SUCH DATE AND FOREGO ISO TAX TREATMENT, THE TRANSFER AGENT FOR THE SHARES SHALL NOTIFY THE CORPORATION IMMEDIATELY. THE REGISTERED HOLDER SHALL HOLD ALL SHARES PURCHASED UNDER THE INCENTIVE STOCK OPTION IN THE
REGISTERED HOLDER’S NAME (AND NOT IN THE NAME OF ANY NOMINEE) PRIOR TO THIS DATE OR UNTIL TRANSFERRED AS DESCRIBED ABOVE. 

  
 5 

 10. Withholding Obligations. Whenever Option Shares are to be issued
under the Option Agreement, the Company shall have the right to require Optionee to remit to the Company an amount sufficient to satisfy federal, state and local withholding tax requirements prior to issuance and/or delivery of any certificate or
certificates for such Option Shares. 
 11. No Obligation to Notify. The Company shall have no duty or obligation to
Optionee to advise Optionee as to the time or manner of exercising the Option. Furthermore, except as specifically set forth herein or in the Plan, the Company shall have no duty or obligation to warn or otherwise advise Optionee of a pending
termination or expiration of the Option or a possible period in which the Option may not be exercised. The Company has no duty or obligation to minimize the tax consequences of the Option granted to Optionee. 

12. Miscellaneous. 

(a) This Option Agreement shall bind and inure to the benefit of the parties’ heirs, legal representatives, successors and permitted
assigns. 
 (b) This Option Agreement, the Grant Notice and the Plan, constitute the entire agreement between the parties pertaining to the
subject matter contained herein and they supersede all prior and contemporaneous agreements, representations and understandings of the parties. No supplement, modification or amendment of this Option Agreement shall be binding unless executed in
writing by all of the parties. No waiver of any of the provisions of this Option Agreement shall be deemed or shall constitute a waiver of any other provisions, whether or not similar, nor shall any waiver constitute a continuing waiver. No waiver
shall be binding unless executed in writing by the party making the waiver. In the event there exists any conflict or discrepancy between any of the terms in the Plan and this Option Agreement, the terms of the Plan shall be controlling. A copy of
the Plan has been delivered to Optionee and also may be inspected by Optionee at the principal office of the Company. 
 (c) Should any
portion of the Plan, the Grant Notice or this Option Agreement be declared invalid and unenforceable, then such portion shall be deemed to be severable from this Option Agreement and shall not affect the remainder hereof. 

(d) All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (i) upon personal delivery to
the party to be notified; (ii) three (3) days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (iii) one (1) day after deposit with a nationally recognized overnight courier, specifying
next day delivery, with written verification of receipt. All communications shall be sent to the Company at its principal executive office, and to Optionee at the address set forth in the Company’s records, or at such other address as the
Company or Optionee may designate by ten (10) days advance written notice to the other party hereto. 
 (e) This Option Agreement shall
be construed according to the laws of the State of Delaware. 

  
 6 

 ATTACHMENT II 

2017 EQUITY INCENTIVE PLAN 

 ONE STOP SYSTEMS, INC. 

STOCK OPTION GRANT NOTICE 

2017 EQUITY INCENTIVE PLAN 

FOR GOOD AND VALUABLE CONSIDERATION, One Stop Systems, Inc. (the “Company”), hereby grants to the Optionee named below, a stock
option (the “Option”) to purchase any part or all of the specified number of shares of its Common Stock (“Option Shares”), upon the terms and subject to the conditions set forth in this Stock Option
Grant Notice (the “Grant Notice”), at the specified purchase price per share without commission or other charge. The Option is granted pursuant to the Company’s 2017 Equity Incentive Plan (the
“Plan”) and the Stock Option Agreement (the “Option Agreement”), promulgated under the Plan and in effect as of the date of this Grant Notice. 

 

			
	Optionee:	  	  

	Date of Grant:	  	  

	Vesting Commencement Date:	  	  

	Number of Option Shares :	  	  

	Exercise Price (Per Share):	  	  

	Total Exercise Price:	  	  

	Expiration Date:	  	 Ten years after Date of Grant

 1. Type of
Grant:                     ☐ Incentive Stock Option1
            ☐ Nonstatutory Stock Option 
 2. Exercise Schedule:
              ☐ Same as Vesting Schedule         ☐ Early Exercise Permitted 

3. Vesting Schedule: Except as otherwise provided in the Option Agreement, the number of Option Shares that are vested (disregarding any
resulting fractional share) as of any date shall be determined as follows: (i) no Option Shares will be vested prior to the Vesting Commencement Date; (ii) on the Vesting Commencement Date and on each monthly anniversary of the Vesting
Commencement Date, 1/36th of the Option Shares shall vest; provided, however, that there has not been a Termination of Service as of each such date. In no event will the Option become exercisable for any additional Option Shares after a Termination
of Service. 
 Notwithstanding the foregoing, in the event of a Change in Control (as defined in Section 2 of the Plan): 

(a) The right to exercise this Option shall accelerate automatically and vest in full (notwithstanding the provisions of Section 3 above)
effective as of immediately prior to the consummation of the Change in Control unless this Option is to be assumed by the acquiring or successor entity (or parent thereof) or a new option or New Incentives (as defined below) are to be issued in
exchange therefor, as provided in subsection (b) below. 
 (b) The vesting of this Option shall not accelerate if and to the extent
that: (i) this Option (including the unvested portion thereof) is to be assumed by the acquiring or successor entity (or parent thereof) or a new option of comparable value is to be issued in exchange therefor pursuant to the terms of the
Change in Control transaction, or (ii) this Option (including the unvested portion thereof) is to be replaced by the acquiring or successor entity (or parent thereof) with other incentives of comparable value under a new incentive program
(“New Incentives”) containing such terms and provisions as the Company’s Board of Directors in its discretion may consider equitable. If this Option is assumed, or if a new option of comparable value is issued in
exchange therefor, then this Option or the new option shall be appropriately adjusted, concurrently with the Change in Control, to apply to the number and class of securities or other property that the Optionee would have received pursuant to the
Change in Control transaction in exchange for the Shares issuable upon exercise of this Option had this Option been exercised immediately prior to the Change in Control, and appropriate adjustment also shall be made to the Exercise Price such that
the aggregate Exercise Price of this Option or the new option shall remain the same as nearly as practicable. 
  

	1 	If this is an Incentive Stock Option, it (plus other outstanding Incentive Stock Options) cannot be first exercisable for more than $100,000 in value (measured by exercise price) in any calendar year. Any excess
over $100,000 is a Nonstatutory Stock Option. 

 (c) If the provisions of subsection (b) above apply, then this Option, the new option or the
New Incentives shall continue to vest as provided above for the remainder of the term of this Option in accordance with the provisions of the Option Agreement. However, in the event of an Involuntary Termination (as defined below) of Optionee’s
service with the Company or the acquiring or successor entity (or parent thereof) within twelve (12) months following such Change in Control, then vesting of this Option, the new option or the New Incentives shall accelerate in full
automatically effective upon such Involuntary Termination. 
 “Involuntary Termination” shall mean a Termination of Service
by reason Optionee’s involuntary dismissal or discharge by the Company, or by the acquiring or successor entity (or parent or any subsidiary thereof employing the Optionee) for reasons other than Misconduct (as defined below). 

“Misconduct” shall mean (A) the commission of any act of fraud, embezzlement or dishonesty by Optionee which affects the
business of the Company, the acquiring or successor entity (or parent or any subsidiary thereof), (B) any unauthorized use or disclosure by Optionee of confidential information or trade secrets of the Company, the acquiring or successor entity (or
parent or any subsidiary thereof), (C) conduct on the part of Optionee which constitutes the breach of any statutory or common law duty of loyalty to the Company, the acquiring or successor entity (or parent or any subsidiary thereof), or
(D) any illegal act by Optionee which materially and adversely affects the business of the Company, the acquiring or successor entity (or parent or any subsidiary thereof), or any felony committed by Optionee, as evidenced by conviction or plea
of nolo contendre thereof. The provisions of this paragraph shall not limit the grounds for the dismissal or discharge of Optionee or any other individual in the service of the Company, the acquiring or successor entity (or parent or any
subsidiary thereof). 
 4. Payment:             By one or a combination of the following
items (described in the Plan): 
   ☐ By cash or check 

  ☐ By net exercise, if the Company has established procedures for net exercise 

5. Additional Terms/Acknowledgements: The undersigned Optionee acknowledges receipt of, and understands and agrees to, this Stock Option Grant
Notice, the Option Agreement, and the Plan. 
 [signature page follows] 

 Further, by their signatures below, the Company and the Optionee agree that the Option is governed by this Grant
Notice and by the provisions of the Plan and Option Agreement, both of which are attached to and made a part of this Grant Notice. Optionee acknowledges receipt of copies of the Plan and the Option Agreement, represents that the Optionee has read
and is familiar with their provisions, and hereby accepts the Option subject to all of their terms and conditions. Optionee further acknowledges that, as of the Date of Grant, this Grant Notice, the Option Agreement and the Plan set forth the entire
understanding between Optionee and the Company regarding the acquisition of stock in the Company and supersede all prior oral and written agreements on that subject, with the exception of options previously granted under the Plan. 

 

									
	 ONE STOP SYSTEMS, INC.
	 		 	 OPTIONEE: 

				
	By:	 	  
	 		 	  

		 		 		 		 	Signature
					
	Date:	 	  
	 		 	Date:	 	  

 Attachments: (I) Option Agreement; (II) 2017 Equity Incentive Plan; and (III) Notice of Exercise 

 ATTACHMENT III 

NOTICE OF EXERCISE 

ONE STOP SYSTEMS, INC. 

2235 Enterprise Street, Suite #110 
 Escondido, CA 92029 

Date of Exercise:
                         

Ladies and Gentlemen: 
 This constitutes notice
under my stock option that I elect to purchase the number of shares for the price set forth below. 
  

					
	Type of option (check one):	  	Incentive ☐  	  	Nonstatutory ☐
			
	Stock option dated:	  		  	
			
	Number of shares as to which option is exercised:	  	                          	  	                              
			
	Certificates to be issued in name of:	  	                          	  	                              
			
	Total exercise price:	  	$                        	  	$                            
			
	Cash or check payment delivered herewith:	  	$                        	  	$                            

 By this exercise, I agree (i) to provide such additional documents as you may require pursuant to the
terms of the 2017 Equity Incentive Plan, (ii) to provide for the payment by me to you (in the manner designated by you) of your withholding obligation, if any, relating to the exercise of this option, and (iii) if this exercise relates to
an incentive stock option, to notify you in writing within fifteen (15) days after the date of any disposition of any of the shares of Common Stock (the “Shares”) issued upon exercise of this option that occurs within two
(2) years after the date of grant of this option or within one (1) year after such shares of Common Stock are issued upon exercise of this option. 

I acknowledge that all certificates representing any of the Shares subject to the provisions of the Option shall have endorsed thereon
appropriate legends reflecting restrictions pursuant to the Option Agreement, the Company’s Certificate of Incorporation, Bylaws and/or applicable securities laws. 

 

	
	Very truly yours,

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