Document:

Annual Incentive Plan Program Description

 Exhibit 10.5 
 THE HILLSHIRE BRANDS COMPANY 
 ANNUAL INCENTIVE PLAN 

FISCAL YEAR 2013 (FY13) 

Capitalized terms used but not defined are defined in Attachment 1. 
 Purpose 
 The objective of The Hillshire Brands Company Annual Incentive Plan for
Fiscal Year 2013 (the “FY13 AIP”) is to advance the interests of The Hillshire Brands Company (“Hillshire Brands” or the “Company”) by: 
  

	 	a)	Rewarding financial performance of Hillshire Brands that contributes to increased shareholder value; 

 

	 	b)	Measuring the effectiveness of Hillshire Brands operating performance, sales and capital management and marketing investments; 

 

	 	c)	Continuing to provide significant rewards for exceptional performance. 

 Incentive Opportunity & Performance Objectives 
 Attachment 2 shows the FY13
AIP Target and Maximum bonus payout opportunities at the various salary bands. Notwithstanding the bonus opportunity levels set forth in Attachment 2, during FY13, the Committee may, in its sole discretion, adjust the FY13 target payout levels
applicable to certain Participants. 
 The following applies to the FY13 AIP generally: 

 

	 	•	 	 Performance measures are approved by the Committee at the beginning of each fiscal year (“Performance Measures”).

  

	 	•	 	 Specific performance goals within the approved Performance Measures are established at the beginning of the Incentive Plan Year and are contained in
the table below (“Performance Goals”). The Performance Goals have been approved by the Committee. 

  

	 	•	 	 The FY13 Performance Measures are: 

  

	 	•	 	 Earnings Before Interest & Tax (“EBIT”) – 20% of target bonus opportunity 

 

	 	•	 	 Net Sales – 20% of target bonus opportunity 

  

	 	•	 	 Average Working Capital – 20% of target bonus opportunity 

 

	 	•	 	 Market Share Increase – 20% of target bonus opportunity 

 

	 	•	 	 Marketing, Advertising and Promotion (“MAP”) Spend as Percentage of Sales – 20% of target bonus opportunity

  

	 	•	 	 When expressed as a percentage of target bonus opportunity, the weighting of each Performance Measure is the same for each salary band, as may be
applicable during FY13. A summary of FY13 Performance Measures and the corresponding incentive 

  
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opportunities for Participants are shown in Attachment 3, which incentive opportunities are subject to adjustment during FY13 as described above under this section, “Incentive
Opportunity & Performance Objectives.” 

  

	 	•	 	 Maximum payout opportunity is 150% of target bonus opportunity, and threshold payout opportunity is 25% of target bonus opportunity.

 Performance Period 
 All objectives are measured over a one-year performance period, which is the Incentive Plan Year. 

Performance Levels 

Maximum – A high level of performance exceeding targeted performance and requiring “stretch” achievement of the Performance Goal
beyond the Annual Operating Plan (“AOP”) level. 
 Midpoint – Midpoint level of performance equivalent to achievement at
the AOP level. 
 Threshold – Performance that just achieves an acceptable level of results warranting incentive recognition.

 Incentive Award Payout Levels 
 Performance Goals 
  

												
	 Measure
	  	 Weighting
	  	 Threshold

(25%)
	  	 Target
(100%)
	  	Maximum
(150%)
	 Net Sales
	  	20%	  	(1)	  	(1)	  	(1)
	 EBIT
	  	20%	  	(1)	  	(1)	  	(1)
	 Average Working Capital
	  	20%	  	(1)	  	(1)	  	(1)
	 Market Share Increase
	  	20%	  	At least 2 of the 7 Key Brands	  	At least 4 of the 7 Key Brands	  	All of the 7 Key
Brands
	 MAP Spend as a % of Sales
	  	20%	  	(1)	  	(1)	  	(1)

  

	(1)	The specific performance goals for fiscal year 2013 were approved by the Compensation and Employee Benefits Committee of the Company’s Board of Directors and are
contained in the minutes of the meeting at which the Program was approved. 

  
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 Attachment 4 graphically displays the payout curve for all five performance goals applicable to this FY13
AIP. 
 Payout levels for the Market Share Increase and MAP performance measures cannot exceed Target payout (100%) unless EBIT achieves at
least Target payout. 
 Straight-line interpolation is used for calculating results between performance levels. 

Incentive Award Payments 

Incentive award payments are distributed as soon as practicable after the Incentive Plan Year results have been publicly announced and the individual
awards requiring the review and approval of the Committee have been approved by the Committee (usually at the Committee’s August 2013 meeting). Except as otherwise provided in this FY13 AIP, a Participant must be an employee of Hillshire
Brands, or any respective subsidiary thereof, on the last day of FY13 in order to be eligible to receive any incentive award. 

Administrative Provisions 
 The
Committee and the Chief Executive Officer shall administer this FY13 AIP jointly and their decisions are final. The Executive Vice President Human Resources, or anyone serving in the equivalent position, and Chief Financial Officer of the Company
will be responsible for the administrative procedures governing this FY13 AIP, including ensuring the existence of approved Performance Measures and specific performance goals and the presentation to the Committee for its approval at the end of FY13
of the performance results under this FY13 AIP. The following administrative procedures shall govern: 
  

	a)	The Committee will approve individual incentive awards for all corporate officers, those executives in salary band Senior Vice President I and above. For individuals
who participate in the Hillshire Brands Performance-Based Incentive Plan (the “PBIP”), individual incentive awards are coordinated with and subject to the terms, conditions, maximums and limitations of the PBIP (which, for those
individuals, is incorporated into this FY13 AIP by reference), with the AIP incentive award being one factor to be considered by the Committee in exercising its negative discretion to reduce the maximum award under the PBIP. The CEO and his or her
direct reports may approve all other incentive awards. 

  

	b)	Any awards earned under this FY13 AIP will be paid in cash. 

  

	c)	In the Committee’s sole discretion, a new Participant who begins participation during the Incentive Plan Year may be eligible for a pro-rata incentive award from
the date of entry into this FY13 AIP. A new Participant should have been actively employed in a bonus-eligible role for at least one calendar quarter of the Incentive Plan Year in order to receive consideration for a pro-rata incentive award.

  

	d)	In the case of death, Disability or retirement during the Incentive Plan Year, a Participant or the Participant’s estate is eligible for a pro-rata incentive award
based upon the Participant’s period of active service (i.e., coded as active on the payroll system) during the Incentive Plan Year and actual achievement of the Performance Goals. Any such pro-rata award will be distributed at the
same time as awards are distributed to active Participants. 

  
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	e)	A Participant who is involuntarily terminated and who subsequently receives severance pay under a Hillshire Brands severance plan on or after August 1, 2012, is
eligible for a pro-rata incentive award based on active service through the date of the Participant’s termination of employment. The amount of any pro-rata incentive award will be determined based on the amount of time the Participant was
actively employed during the Incentive Plan Year and actual achievement of the Performance Goals. Any such pro-rata award will be distributed at the same time as awards are distributed to active Participants. 

 

	f)	Unless otherwise approved by the Committee or the Chief Executive Officer of Hillshire Brands, as applicable, and subject in any case to subparagraph (g), any
Participant who voluntarily terminates, or who is involuntarily terminated and does not receive severance pay, regardless of the Participant’s eligibility for retirement status, during the Incentive Plan Year will not be entitled to any
incentive award attributable to the Incentive Plan Year. 

  

	g)	In the event that the division, business unit or business segment of Hillshire Brands to which at least 80% of a Participant’s time is dedicated or from which the
Participant is on leave of absence is sold, closed, spun off or otherwise divested and, as a result of such transaction, the Participant’s employment with Hillshire Brands or any of their respective subsidiaries is terminated, as of the closing
date of such transaction the Participant will be entitled to a pro-rata incentive award based on the Participant’s active service through the date of Participant’s termination of employment. The amount of any pro-rata incentive award will
be determined based upon the amount of time the Participant was actively employed during the Incentive Plan Year and actual achievement of the Performance Goals. Any such pro-rata award will be distributed no later than the date the
incentive award is distributed to active Participants. 

  

	h)	Notwithstanding anything contained in this document to the contrary, a Participant may be entitled to receive either an increased or reduced incentive award payment, or
no incentive award payment whatsoever, attributable to the Incentive Plan Year upon the occurrence of any of the following events: 

  

	 	1)	If any Participant engages in any activity contrary or harmful to the interests of the Company, including but not limited to: (1) competing, directly or indirectly
(either as owner, employee or agent), with any of the businesses of the Company, (2) violating any Company policy, (3) soliciting any present or future employees or customers of the Company to terminate such employment or business
relationships(s) with the Company, (4) disclosing or misusing any confidential information regarding the Company, or (5) participating in any activity not approved by the Board which could reasonably be foreseen as contributing to or
resulting in a Change of Control of the Company (as defined in the Hillshire Brands 2012 Long-Term Incentive Stock Plans), then the Participant will not be entitled to any incentive award attributable to the Incentive Plan Year.

  
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	 	2)	This paragraph (h)(2) applies only to those Participants who are “officers” of the Company, as defined in Rule 16a-1(f) under the Securities Exchange Act of
1934 during the Incentive Plan Year and who participate in any Hillshire Brands Executive Management Long-Term Incentive Program (each such Participant, an “Officer Participant”). If an Officer Participant receives an incentive award
payment that was predicated upon the Company achieving certain Performance Measures (the “Original Payout”) and, within two years after the date of such Original Payout, the Company restates its financial statements due to material
noncompliance with the financial reporting requirements under the securities laws (such restated financial statements, the “Restated Financials”), then the amount of the incentive award payment for such Officer Participant shall be
recalculated based on the Restated Financials (such recalculated amount, the “Restated Amount”). If the Original Payout is greater than the Restated Amount, then the Company shall be entitled to recoup from such Officer Participant, and
such Officer Participant shall pay to the Company, in cash, an amount equal to (1) the Original Payout, less (2) the Restated Amount. If the Restated Amount is greater than the Original Payout, then the Company shall pay to the Officer
Participant an amount equal to (i) the Restated Amount, less (ii) the Original Payout. Any such payment or recoupment shall be due and payable within 90 days after the date on which the Company files the Restated Financials with the
Securities and Exchange Commission. If an Officer Participant elected to defer part or all of their Original Payout pursuant to the Hillshire Brands Executive Deferred Compensation Plan, then the Officer Participant’s account under such
Deferred Compensation Plan automatically shall be credited or charged so that the amount deferred in connection with such incentive award payment equals the Restated Amount. No interest will be due to or paid by the Company or the Officer
Participant to the other with respect to any true up payment. Notwithstanding the foregoing, the Committee may determine, in its discretion and based on the circumstances leading to the filing of the Restated Financials, that recoupment or payment
under this paragraph (h)(2) of the Restated Amount is not practical and may elect to forego the application of this paragraph (h)(2). 

  

	i)	Performance results under this FY13 AIP will be measured in accordance with the Definitions in Attachment 1. 

 

	j)	Performance results and Eligible Earnings will be used to determine the incentive award payment. 

 

	k)	Any Participant who is employed as of the end of the Incentive Plan Year shall be entitled to receive an incentive award payment, to the extent that performance goals
are met, regardless of whether the Participant resigns or is terminated between the end of the Incentive Plan Year and the date the incentive awards are distributed. 

 

	l)	Hillshire Brands reserves the right to offset against any incentive award payment owed by Hillshire Brands to a terminating or terminated Participant any amounts to
which Hillshire Brands has a “claim of right.” 

  
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	m)	The terms of the AIP shall be construed and paid in such manner as to satisfy the short-term deferral exception to the application of Section 409A of the Code as
set forth in Subsections (a)(4) and (b)(4) of Treasury Regulations Section 1.409A-1. 

  

	n)	Nothing herein shall be construed as an agreement or commitment to employ any Participant or to employ a Participant for any fixed period of time or constitute a
commitment by Hillshire Brands, or any of its respective subsidiaries, that any Participant will continue to receive an incentive award or will continue as a Participant in this FY13 AIP. 

 

	o)	The Committee reserves the right to amend, modify, interpret or terminate this FY13 AIP or awards to be paid under this FY13 AIP at any time for any reason.
Specifically, an individual’s target bonus opportunity may be modified during FY13 in the Committee’s discretion and the performance criteria may be adjusted by the Committee for extraordinary and similar items that prevent undue and/or
unintended gain or loss; provided that, for any incentive awards under the AIP to individuals participating in the PBIP, any adjustments will be subject to the terms, conditions, maximums and limitations under the PBIP. 

 

	p)	The Committee may delegate certain administrative responsibilities to the Chief Executive Officer except for the following: 

 

	 	1)	Any actions affecting the Chief Executive Officer, and other elected officers of Hillshire Brands, as applicable, 

 

	 	2)	Approval of corporate Performance Goals and certification of performance results relative to such standards following the end of the Incentive Plan Year, and

  

	 	3)	Approval of any substantive changes or amendments to this FY13 AIP. 

  
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 Attachment 1 
 Definitions 
  

	(a)	Average Working Capital is a 13-point average of Core Working Capital as of the period-end for fiscal 2012 Period 12 and the period-end balances for each of the
twelve periods of fiscal 2013. 

  

	(b)	Board means the Hillshire Brands Board of Directors. 

  

	(c)	Brand Dollar Sales means sales dollars as tracked by IRI for Hillshire Brand’s Seven Key Brands sold through the tracked multioutlet channels which include
grocery, drug, Target, K Mart, Wal-Mart, Sam’s Club, BJ’s Club stores, Dollar Stores and military commissaries. 

  

	(d)	Category Dollar Sales means sales dollars as tracked by IRI for Hillshire Brand’s Categories sold through the tracked multioutlet channels. The Categories
are hot dogs, corn dogs, breakfast sausage, frozen protein breakfast, mainstream lunchmeat, smoked sausage and super premium smoked sausage. 

  

	(e)	Committee is the Compensation and Employee Benefits Committee or other committee of the Hillshire Brands Board. 

 

	(f)	Core Working Capital means the Company’s net accounts receivable plus net inventories less accounts payable, excluding intercompany receivable and
intercompany accounts. 

  

	(g)	Disability is as defined under the Hillshire Brands sponsored long-term disability plan in which the Participant is covered. 

 

	(h)	Earnings Before Interest and Taxes (EBIT) means the Company’s Net Income plus (a) net interest expense (the net of interest expense and interest
income); and (b) income tax expense. Net Income is also adjusted to exclude Significant Items and select other charges and gains. 

  

	(i)	Eligible Earnings mean regular salary or wages paid to the Participant from July 1, 2012 through June 29, 2013. It does not include allowances,
reimbursements, commissions, other incentives, severance, lump sums, awards, deferred compensation and compensation attributable to the exercise of stock options or other forms of long-term incentive compensation. 

 

	(j)	Incentive Plan Year is the Company’s fiscal year 2013 starting on July 1, 2012 and ending on June 29, 2013. 

 

	(k)	IRI stands for Information Resources, Inc. which is a market research company which provides clients with consumer, shopper, and retail market intelligence and
analysis focused on the consumer packaged goods industry. 

  
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	(l)	Market Share Increase means Brand Dollar Sales for one of the Seven Key Brands over the Category Dollar Sales for that brand for fiscal year 2013 less Brand
Dollar Sales for one of the Seven Key Brands over the Category Dollar Sales for that brand for fiscal year 2012. This measure is applicable for Hillshire Brands’ Seven Key Brands. 

 

	(m)	Marketing, Advertising and Promotion (MAP) Spend as a Percentage of Sales means the marketing, advertising and promotional expenses for Hillshire Brands
divided by Net Sales. 

  

	(n)	Net Income means a company’s revenues minus all expenses including cost of sales, selling general and administrative costs; exit activity asset and business
disposition costs; debt extinguishment costs; interest; and taxes. 

  

	(o)	Net Sales means that portion of the Company’s Adjusted Net Sales, as disclosed in the Company’s earnings press releases and filings with the SEC, as
may be further adjusted by the Committee to (i) include or exclude the results of businesses acquired and/or divested during the measurement period, to the extent such results were included or excluded in the Company’s annual operating
plan, (ii) adjust for currency exchange rates used in the Company’s annual operating plan, and/or (iii) prevent undue and/or unintended gain or loss. 

 

	(p)	Participant means an employee in Hillshire Brands in salary bands Manager through Chief Executive Officer. Employees in salary bands Manager through Senior
Manager eligible for a sales incentive plan are excluded from this FY13 AIP. 

  

	(q)	Seven Key Brands include Ball Park Hot Dogs, State Fair Corn Dogs, Jimmy Dean Breakfast Sausage, Jimmy Dean Frozen Breakfast, Hillshire Farm Lunchmeat, Hillshire
Farm Smoked Sausage and Aidell’s Smoked Sausage. 

  

	(r)	Significant Items mean those items that are reported by the Company in its annual report in the table entitled “Impact of Significant Items on Income from
Continuing Operations and Net Income” and that meet the Controller’s criteria for materiality and that are not indicative of our core operating results. Significant items vary each year and may include items such as charges for exit
activities, impairment charges, tax costs and benefits resulting from the disposition of a business, gains or losses on the sale of discontinued operations and changes in tax valuation allowances. 

  
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 Attachment 2 
 THE HILLSHIRE BRANDS COMPANY 
 FY13 ANNUAL INCENTIVE PLAN 

TARGETS AND MAXIMUMS 
  

					
	 Salary

Bands
	  	 Target %
	  	 Maximum %

	 CEO
	  	100.00%	  	150.00%
	 SVPII
	  	  80.00%	  	120.00%
	 SVPI
	  	  70.00%	  	105.00%
	 VPII
	  	  55.00%	  	  82.50%
	 VPI
	  	  55.00%	  	  82.50%
	 DIR
	  	  35.00%	  	  52.50%
	 SMGR
	  	  15.00%	  	  22.50%
	 MGR
	  	  10.00%	  	  15.00%

  
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 Attachment 3 
 HILLSHIRE BRANDS CORPORATION 
 FY13 ANNUAL INCENTIVE PLAN 

PERFORMANCE MEASURES AND WEIGHTINGS 
 Performance Measures as a % of Target Annual Incentive Opportunity 
  

																															
	 Salary Band
	  	Net
Sales
20%	 	EBIT
20%	 	Working
Capital
20%	 	Market
Share
Increase
20%	 	MAP
Spend
as a %
Sales
20%	 	Target
Annual
Incentive
Opportunity
100%
	 Chief Executive Officer
	  	 	 	20	%	 	 	 	20	%	 	 	 	20	%	 	 	 	20	%	 	 	 	20	%	 	 	 	100	%
	 Senior Vice President II
	  	 	 	16	%	 	 	 	16	%	 	 	 	16	%	 	 	 	16	%	 	 	 	16	%	 	 	 	80	%
	 Senior Vice President I
	  	 	 	14	%	 	 	 	14	%	 	 	 	14	%	 	 	 	14	%	 	 	 	14	%	 	 	 	70	%
	 Vice President - II
	  	 	 	11	%	 	 	 	11	%	 	 	 	11	%	 	 	 	11	%	 	 	 	11	%	 	 	 	55	%
	 Vice President - I
	  	 	 	11	%	 	 	 	11	%	 	 	 	11	%	 	 	 	11	%	 	 	 	11	%	 	 	 	55	%
	 Director
	  	 	 	7	%	 	 	 	7	%	 	 	 	7	%	 	 	 	7	%	 	 	 	7	%	 	 	 	35	%
	 Senior Manager
	  	 	 	3	%	 	 	 	3	%	 	 	 	3	%	 	 	 	3	%	 	 	 	3	%	 	 	 	15	%
	 Manager
	  	 	 	2	%	 	 	 	2	%	 	 	 	2	%	 	 	 	2	%	 	 	 	2	%	 	 	 	10	%

  
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 Attachment 4 

 
 

 

  
 11AuthenTec, Inc. 2007 Stock Incentive Plan

 Exhibit 4.1 
 AUTHENTEC, INC. 2007 STOCK INCENTIVE PLAN 
  

	1.	 Establishment, Purpose and Types of Awards 

AUTHENTEC, INC., a Delaware corporation (the “Company”), hereby establishes the AUTHENTEC, INC.
2007 STOCK INCENTIVE PLAN (the “Plan”). The purpose of the Plan is to promote the long-term growth and profitability of the Company by (i) providing key people with incentives to improve stockholder value and to contribute to
the growth and financial success of the Company through their future services, and (ii) enabling the Company to attract, retain and reward the best-available persons. 

The Plan permits the granting of stock options (including incentive stock options qualifying under Code section 422 and
nonstatutory stock options), stock appreciation rights, restricted or unrestricted stock awards, phantom stock, performance awards, other stock-based awards, or any combination of the foregoing. 

 

	2.	 Definitions 

 Under this Plan, except where the context otherwise indicates, the following definitions apply: 
 (a) “Administrator” means the Board or the committee(s) or officer(s) appointed by the Board that have authority to administer the Plan as provided in Section 3 hereof. 

(b) “Affiliate” means any entity, whether now or hereafter existing, which controls, is
controlled by, or is under common control with, the Company (including, but not limited to, joint ventures, limited liability companies, and partnerships). For this purpose, “control” shall mean ownership of 50% or more of the total
combined voting power or value of all classes of stock or interests of the entity, or the power to direct the management and policies of the entity, by contract or otherwise. 

(c) “Award” means any stock option, stock appreciation right, stock award, phantom stock
award, performance award, or other stock-based award. 
 (d) “Board” means the
Board of Directors of the Company. 
 (e) “Change in Control” means:
(i) the acquisition (other than from the Company) by any Person, as defined in this Section 2(e), of the beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended) of 50% or
more of (A) the then outstanding shares of the securities of the Company, or (B) the combined voting power of the then outstanding securities of the Company entitled to vote generally in the election of directors (the “Company
Voting Stock”); (ii) the closing of a sale or other conveyance of all or substantially all of the assets of the Company; or (iii) the effective time of any merger, share exchange, consolidation, or other business combination
involving the Company if immediately after such transaction persons who hold a majority of the outstanding voting securities entitled to vote generally in the election of directors of the surviving entity (or the entity owning 100% of such surviving
entity) are not persons who, immediately prior to such 

 
transaction, held the Company Voting Stock; provided, however, that a Change in Control shall not include a public offering of capital stock of the Company; and provided,
further, that for purposes of any Award or subplan that constitutes a “nonqualified deferred compensation plan,” within the meaning of Code section 409A, the Administrator, in its discretion, may specify a different definition of
Change in Control in order to comply with the provisions of Code section 409A. For purposes of this Section 2(e), a “Person” means any individual, entity or group within the meaning of Section 13(d)(3) or 14(d)(2) of the
Securities Exchange Act of 1934, as amended, other than: employee benefit plans sponsored or maintained by the Company and by entities controlled by the Company or an underwriter of the Common Stock in a registered public offering. 

(f) “Code” means the Internal Revenue Code of 1986, as amended, and any regulations
promulgated thereunder. 
 (g) “Common Stock” means shares of common stock of
the Company, par value of one cent ($0.01) per share. 
 (h) “Fair Market Value”
means, with respect to a share of the Company’s Common Stock for any purpose on a particular date, the value determined by the Administrator in good faith. However, if the Common Stock is registered under Section 12(b) or 12(g) of the
Securities Exchange Act of 1934, as amended, and listed for trading on a national exchange or market, “Fair Market Value” means, as applicable, (i) either the closing price or the average of the high and low sale price on the
relevant date, as determined in the Administrator’s discretion, quoted on the New York Stock Exchange, the American Stock Exchange, the Nasdaq Global Select Market, or the Nasdaq Global Market; (ii) the last sale price on the relevant date
quoted on the Nasdaq Capital Market; (iii) the average of the high bid and low asked prices on the relevant date quoted on the Nasdaq OTC Bulletin Board Service or by the National Quotation Bureau, Inc. or a comparable service as determined in
the Administrator’s discretion; or (iv) if the Common Stock is not quoted by any of the above, the average of the closing bid and asked prices on the relevant date furnished by a professional market maker for the Common Stock, or by such
other source, selected by the Administrator. If no public trading of the Common Stock occurs on the relevant date but the shares are so listed, then Fair Market Value shall be determined as of the next preceding date on which trading of the Common
Stock does occur. For all purposes under this Plan, the term “relevant date” as used in this Section 2(h) means either the date as of which Fair Market Value is to be determined or the next preceding date on which public
trading of the Common Stock occurs, as determined in the Administrator’s discretion. 
 (i)
“Grant Agreement” means a written document memorializing the terms and conditions of an Award granted pursuant to the Plan and which shall incorporate the terms of the Plan. 

 

	3.	 Administration 

 (a) Administration of the Plan. The Plan shall be administered by the Board or by such committee or committees as may be appointed by the Board from time to time. To the extent allowed by
applicable state law, the Board by resolution may authorize an officer or officers to grant Awards (other than Stock Awards) to other officers and employees of the Company and its Affiliates, and, to the extent of such authorization, such officer or
officers shall be the Administrator. 

  
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 (b) Powers of the Administrator. The Administrator
shall have all the powers vested in it by the terms of the Plan, such powers to include authority, in its sole and absolute discretion, to grant Awards under the Plan, prescribe Grant Agreements evidencing such Awards and establish programs for
granting Awards. 
 The Administrator shall have full power and authority to take all other
actions necessary to carry out the purpose and intent of the Plan, including, but not limited to, the authority to: (i) determine the eligible persons to whom, and the time or times at which Awards shall be granted; (ii) determine the
types of Awards to be granted; (iii) determine the number of shares to be covered by or used for reference purposes for each Award; (iv) impose such terms, limitations, restrictions and conditions upon any such Award as the Administrator
shall deem appropriate; (v) modify, amend, extend or renew outstanding Awards, or accept the surrender of outstanding Awards and substitute new Awards (provided however, that, except as provided in Section 6 or 7(c) of the Plan, any
modification that would materially adversely affect any outstanding Award shall not be made without the consent of the holder); (vi) accelerate or otherwise change the time in which an Award may be exercised or becomes payable and to waive or
accelerate the lapse, in whole or in part, of any restriction or condition with respect to such Award, including, but not limited to, any restriction or condition with respect to the vesting or exercisability of an Award following termination of any
grantee’s employment or other relationship with the Company; (vii) establish objectives and conditions, if any, for earning Awards and determining whether Awards will be paid with respect to a performance period; and (viii) for any
purpose, including but not limited to, qualifying for preferred tax treatment under foreign tax laws or otherwise complying with the regulatory requirements of local or foreign jurisdictions, to establish, amend, modify, administer or terminate
sub-plans, and prescribe, amend and rescind rules and regulations relating to such sub-plans. 

The Administrator shall have full power and authority, in its sole and absolute discretion, to
administer, construe and interpret the Plan, Grant Agreements and all other documents relevant to the Plan and Awards issued thereunder, to establish, amend, rescind and interpret such rules, regulations, agreements, guidelines and instruments for
the administration of the Plan and for the conduct of its business as the Administrator deems necessary or advisable, and to correct any defect, supply any omission or reconcile any inconsistency in the Plan or in any Award in the manner and to the
extent the Administrator shall deem it desirable to carry it into effect. 
 (c) Non-Uniform
Determinations. The Administrator’s determinations under the Plan (including without limitation, determinations of the persons to receive Awards, the form, amount and timing of such Awards, the terms and provisions of such Awards and the
Grant Agreements evidencing such Awards) need not be uniform and may be made by the Administrator selectively among persons who receive, or are eligible to receive, Awards under the Plan, whether or not such persons are similarly situated.

 (d) Limited Liability. To the maximum extent permitted by law, no member of the
Administrator shall be liable for any action taken or decision made in good faith relating to the Plan or any Award thereunder. 

  
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 (e) Indemnification. To the maximum extent permitted
by law and by the Company’s charter and by-laws, the members of the Administrator shall be indemnified by the Company in respect of all their activities under the Plan. 

(f) Effect of Administrator’s Decision. All actions taken and decisions and determinations
made by the Administrator on all matters relating to the Plan pursuant to the powers vested in it hereunder shall be in the Administrator’s sole and absolute discretion and shall be conclusive and binding on all parties concerned, including the
Company, its stockholders, any participants in the Plan and any other employee, consultant, or director of the Company, and their respective successors in interest. 
  

	4.	 Shares Available for the Plan; Maximum Awards 

Subject to adjustments as provided in Section 7(c) of the Plan, the shares of Common Stock that may be issued with
respect to Awards granted under the Plan shall not exceed the number of shares of Common Stock equal to ten percent (10%) of the sum of (i) the total number of issued and outstanding shares of Common Stock immediately following the closing
of the Company’s initial public offering (the “IPO”), (ii) the number of shares of Common Stock issuable upon exercise of warrants outstanding immediately following the effectiveness of the proposed reverse stock split to
occur immediately prior to the closing of the IPO (the “Effective Date”), and (iii) the number of shares of Common Stock issuable upon the exercise of options outstanding as of the Effective Date; provided,
however, that no more than an aggregate of 3,524,348 shares of Common Stock may be issued pursuant to incentive stock options intended to qualify under Code section 422. The Company shall reserve such number of shares for Awards under the
Plan, subject to adjustments as provided in Section 7(c) of the Plan. If any Award, or portion of an Award, under the Plan expires or terminates unexercised, becomes unexercisable, is settled in cash without delivery of shares of Common Stock,
or is forfeited or otherwise terminated, surrendered or canceled as to any shares, or if any shares of Common Stock are repurchased by or surrendered to the Company in connection with any Award (whether or not such surrendered shares were acquired
pursuant to any Award), or if any shares are withheld by the Company, the shares subject to such Award and the repurchased, surrendered and withheld shares shall thereafter be available for further Awards under the Plan; provided, however, that any
such shares that are surrendered to or repurchased or withheld by the Company in connection with any Award or that are otherwise forfeited after issuance shall not be available for purchase pursuant to incentive stock options intended to qualify
under Code section 422. 
 Subject to adjustments as provided in Section 7(c) of the Plan, the maximum
number of shares of Common Stock subject to Awards of any combination that may be granted during any one fiscal year of the Company to any one individual under this Plan shall be limited to 500,000 shares. Such per-individual limit shall not be
adjusted to effect a restoration of shares of Common Stock with respect to which the related Award is terminated, surrendered or canceled. 
  

	5.	 Participation 

 Participation in the Plan shall be open to all employees, officers, and directors of, and other individuals providing bona fide services to or for, the Company, or of any Affiliate of the Company, as may
be selected by the Administrator from time to time. The Administrator may also grant Awards to individuals in connection with hiring, retention or otherwise, prior to the date the individual first performs services for the Company or an Affiliate,
provided that such Awards shall not become vested or exercisable, and no shares shall be issued to such individual, prior to the date the individual first commences performance of such services. 

  
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	6.	 Awards 

 The Administrator, in its sole discretion, establishes the terms of all Awards granted under the Plan. Awards may be granted individually or in tandem with other types of Awards, concurrently with or with
respect to outstanding Awards. All Awards are subject to the terms and conditions provided in the Grant Agreement. The Administrator may permit or require a recipient of an Award to defer such individual’s receipt of the payment of cash or the
delivery of Common Stock that would otherwise be due to such individual by virtue of the issuance of, exercise of, payment of, or lapse or waiver of restrictions respecting, any Award. If any such payment deferral is required or permitted, the
Administrator shall, in its sole discretion, establish rules and procedures for such payment deferrals. 
 (a) Stock Options. The Administrator may from time to time grant to eligible participants Awards of incentive stock options as that term is defined in Code section 422 or nonstatutory stock
options; provided, however, that Awards of incentive stock options shall be limited to employees of the Company or of any current or hereafter existing “parent corporation” or “subsidiary corporation,”
as defined in Code sections 424(e) and (f), respectively, of the Company and any other individuals who are eligible to receive incentive stock options under the provisions of Code section 422. Options must have an exercise price at least equal
to Fair Market Value as of the date of grant. No stock option shall be an incentive stock option unless so designated by the Administrator at the time of grant or in the Grant Agreement evidencing such stock option. 

(b) Stock Appreciation Rights. The Administrator may from time to time grant to eligible
participants Awards of Stock Appreciation Rights (“SAR”). A SAR entitles the grantee to receive, subject to the provisions of the Plan and the Grant Agreement, a payment having an aggregate value equal to the product of (i) the
excess of (A) the Fair Market Value on the exercise date of one share of Common Stock over (B) the base price per share specified in the Grant Agreement, times (ii) the number of shares specified by the SAR, or portion thereof, which
is exercised. The base price per share specified in the Grant Agreement shall not be less than the lower of the Fair Market Value on the grant date or the exercise price of any tandem stock option Award to which the SAR is related. Payment by the
Company of the amount receivable upon any exercise of an SAR may be made by the delivery of Common Stock or cash, or any combination of Common Stock and cash, as determined in the sole discretion of the Administrator. If upon settlement of the
exercise of an SAR a grantee is to receive a portion of such payment in shares of Common Stock, the number of shares shall be determined by dividing such portion by the Fair Market Value of a share of Common Stock on the exercise date. No fractional
shares shall be used for such payment and the Administrator shall determine whether cash shall be given in lieu of such fractional shares or whether such fractional shares shall be eliminated. 

(c) Stock Awards. The Administrator may from time to time grant restricted or unrestricted stock
Awards to eligible participants in such amounts, on such terms and conditions, and for such consideration, including no consideration or such minimum consideration as may be required by law, as it shall determine. A stock Award may be paid in Common
Stock, in cash, or in a combination of Common Stock and cash, as determined in the sole discretion of the Administrator. 

  
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 (d) Phantom Stock. The Administrator may from time to
time grant Awards to eligible participants denominated in stock-equivalent units (“phantom stock”) in such amounts and on such terms and conditions as it shall determine. Phantom stock units granted to a participant shall be
credited to a bookkeeping reserve account solely for accounting purposes and shall not require a segregation of any of the Company’s assets. An Award of phantom stock may be settled in Common Stock, in cash, or in a combination of Common Stock
and cash, as determined in the sole discretion of the Administrator. Except as otherwise provided in the applicable Grant Agreement, the grantee shall not have the rights of a stockholder with respect to any shares of Common Stock represented by a
phantom stock unit solely as a result of the grant of a phantom stock unit to the grantee. 

(e) Performance Awards. The Administrator may, in its discretion, grant performance awards which
become payable on account of attainment of one or more performance goals established by the Administrator. Performance awards may be paid by the delivery of Common Stock or cash, or any combination of Common Stock and cash, as determined in the sole
discretion of the Administrator. Performance goals established by the Administrator may be based on the Company’s or an Affiliate’s operating income or one or more other business criteria selected by the Administrator that apply to an
individual or group of individuals, a business unit, or the Company or an Affiliate as a whole, over such performance period as the Administrator may designate. 

(f) Other Stock-Based Awards. The Administrator may from time to time grant other stock-based
awards to eligible participants in such amounts, on such terms and conditions, and for such consideration, including no consideration or such minimum consideration as may be required by law, as it shall determine. Other stock-based awards may be
denominated in cash, in Common Stock or other securities, in stock-equivalent units, in stock appreciation units, in securities or debentures convertible into Common Stock, or in any combination of the foregoing and may be paid in Common Stock or
other securities, in cash, or in a combination of Common Stock or other securities and cash, all as determined in the sole discretion of the Administrator. 
  

	7.	 Miscellaneous 

 (a) Withholding of Taxes. Grantees and holders of Awards shall pay to the Company or its Affiliate, or make provision satisfactory to the Administrator for payment of, any taxes required to be
withheld in respect of Awards under the Plan no later than the date of the event creating the tax liability. The Company or its Affiliate may, to the extent permitted by law, deduct any such tax obligations from any payment of any kind otherwise due
to the grantee or holder of an Award. In the event that payment to the Company or its Affiliate of such tax obligations is made in shares of Common Stock, such shares shall be valued at Fair Market Value on the applicable date for such purposes and
shall not exceed in amount the minimum statutory tax withholding obligation. 
 (b)
Transferability. Except as otherwise determined by the Administrator, and in any event in the case of an incentive stock option or a stock appreciation right granted with respect to an incentive stock option, no Award granted under the Plan
shall be transferable by a grantee otherwise than by will or the laws of descent and distribution. Unless otherwise determined by the Administrator in accord with the provisions of the immediately preceding sentence, an Award may be exercised during
the lifetime of the grantee, only by the grantee or, during the period the grantee is under a legal disability, by the grantee’s guardian or legal representative. 

  
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 (c) Adjustments for Corporate Transactions and Other
Events. 
  

	 	(i)	 Stock Dividend, Stock Split and Reverse Stock Split. In the event of a stock dividend of, or stock split or reverse stock split affecting,
the Common Stock, (A) the maximum number of shares of such Common Stock as to which Awards may be granted under this Plan and the maximum number of shares with respect to which Awards may be granted during any one fiscal year of the Company to
any individual, as provided in Section 4 of the Plan, and (B) the number of shares covered by and the exercise price and other terms of outstanding Awards, shall, without further action of the Board, be adjusted to reflect such event. The
Administrator shall round up fractional shares and round fractional cents that arise with respect to outstanding Awards as a result of the stock dividend, stock split or reverse stock split. 

 

	 	(ii)	 Non-Change in Control Transactions. Except with respect to the transactions set forth in Section 7(c)(i), in the event of any change
affecting the Common Stock, the Company or its capitalization, by reason of a spin-off, split-up, dividend, recapitalization, merger, consolidation or share exchange, other than any such change that is part of a transaction resulting in a Change in
Control of the Company, the Administrator, in its discretion and without the consent of the holders of the Awards, shall make (A) appropriate adjustments to the maximum number and kind of shares reserved for issuance or with respect to which
Awards may be granted under the Plan, in the aggregate and with respect to any individual during any one fiscal year of the Company, as provided in Section 4 of the Plan; and (B) may make any other adjustments in outstanding Awards,
including but not limited to modifying the number, kind and price of securities subject to Awards. 

  

	 	(iii)	 Change in Control Transactions. In the event of any transaction resulting in a Change in Control of the Company, outstanding stock options
and other Awards that are payable in or convertible into Common Stock under this Plan will terminate upon the effective time of such Change in Control unless provision is made in connection with the transaction for the continuation or assumption of
such Awards by, or for the substitution of the equivalent awards of, the surviving or successor entity or a parent thereof. In the event of such termination, (A) the outstanding stock options and other Awards that will terminate upon the
effective time of the Change in Control shall become fully vested immediately before the effective time of the Change in Control, and (B) the holders of stock options and other Awards under the Plan will be permitted, immediately before the

  
 7 

	 	 
Change in Control, to exercise or convert all portions of such stock options or other Awards under the Plan that are then exercisable or convertible or which become exercisable or convertible
upon or prior to the effective time of the Change in Control. 

  

	 	(iv)	 Unusual or Nonrecurring Events. The Administrator is authorized to make, in its discretion and without the consent of holders of Awards,
adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events affecting the Company, or the financial statements of the Company or any Affiliate, or of changes in applicable laws,
regulations, or accounting principles, whenever the Administrator determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan.

 (d) Substitution of Awards in Mergers and Acquisitions. Awards may
be granted under the Plan from time to time in substitution for awards held by employees, officers, consultants or directors of entities who become or are about to become employees, officers, consultants or directors of the Company or an Affiliate
as the result of a merger or consolidation of the employing entity with the Company or an Affiliate, or the acquisition by the Company or an Affiliate of the assets or stock of the employing entity. The terms and conditions of any substitute Awards
so granted may vary from the terms and conditions set forth herein to the extent that the Administrator deems appropriate at the time of grant to conform the substitute Awards to the provisions of the awards for which they are substituted.

 (e) Termination, Amendment and Modification of the Plan. The Board may terminate,
amend or modify the Plan or any portion thereof at any time. Except as otherwise determined by the Board, termination of the Plan shall not affect the Administrator’s ability to exercise the powers granted to it hereunder with respect to Awards
granted under the Plan prior to the date of such termination. 
 (f) Non-Guarantee of
Employment or Service. Nothing in the Plan or in any Grant Agreement thereunder shall confer any right on an individual to continue in the service of the Company or shall interfere in any way with the right of the Company to terminate such
service at any time with or without cause or notice and whether or not such termination results in (i) the failure of any Award to vest; (ii) the forfeiture of any unvested or vested portion of any Award; and/or (iii) any other
adverse effect on the individual’s interests under the Plan. 
 (g) No Trust or Fund
Created. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company and a grantee or any other person. To the extent that any grantee or other person
acquires a right to receive payments from the Company pursuant to an Award, such right shall be no greater than the right of any unsecured general creditor of the Company. 

  
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 (h) Governing Law. The validity, construction and
effect of the Plan, of Grant Agreements entered into pursuant to the Plan, and of any rules, regulations, determinations or decisions made by the Administrator relating to the Plan or such Grant Agreements, and the rights of any and all persons
having or claiming to have any interest therein or thereunder, shall be determined exclusively in accordance with applicable federal laws and the laws of the State of Delaware, without regard to its conflict of laws principles. 

(i) Effective Date; Termination Date. The Plan is effective as of the date on which the Plan is
adopted by the Board, subject to approval of the stockholders within twelve months before or after such date. No Award shall be granted under the Plan after the close of business on the day immediately preceding the tenth anniversary of the
effective date of the Plan, or if earlier, the tenth anniversary of the date this Plan is approved by the stockholders. Subject to other applicable provisions of the Plan, all Awards made under the Plan prior to such termination of the Plan shall
remain in effect until such Awards have been satisfied or terminated in accordance with the Plan and the terms of such Awards. 

  
 9

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