Document:

EX-10.3

 Exhibit 10.3 
 AMENDED AND RESTATED 
 BENEFITFOCUS.COM, INC. 

2000 STOCK OPTION PLAN 

 AMENDED AND RESTATED 

BENEFITFOCUS.COM, INC. 
 2000 STOCK OPTION PLAN 
 TABLE OF CONTENTS 

 

							
			
	 ARTICLE 1
	 	DEFINITIONS	  	 	1	  
			
	 ARTICLE 2
	 	THE PLAN	  	 	4	  
	 2.1
	 	 NAME
	  	 	4	  
	 2.2
	 	 PURPOSE
	  	 	4	  
	 2.3
	 	 EFFECTIVE DATE
	  	 	4	  
			
	 ARTICLE 3
	 	PARTICIPANTS	  	 	4	  
			
	 ARTICLE 4
	 	ADMINISTRATION	  	 	4	  
	 4.1
	 	 DUTIES AND POWERS OF THE
COMMITTEE
	  	 	4	  
	 4.2
	 	 INTERPRETATION; RULES
	  	 	5	  
	 4.3
	 	 NO LIABILITY
	  	 	5	  
	 4.4
	 	 MAJORITY RULE
	  	 	5	  
	 4.5
	 	 COMPANY ASSISTANCE
	  	 	5	  
			
	 ARTICLE 5
	 	SHARES OF STOCK SUBJECT TO PLAN	  	 	5	  
	 5.1
	 	 LIMITATIONS
	  	 	5	  
	 5.2
	 	 ANTIDILUTION
	  	 	5	  
			
	 ARTICLE 6
	 	OPTIONS	  	 	6	  
	 6.1
	 	 TYPES OF OPTIONS GRANTED
	  	 	6	  
	 6.2
	 	 OPTION GRANT AND AGREEMENT
	  	 	6	  
	 6.3
	 	 OPTIONEE LIMITATIONS
	  	 	7	  
	 6.4
	 	 $100,000 and Section 162(m) Limitations
	  	 	7	  
	 6.5
	 	 EXERCISE PRICE
	  	 	7	  
	 6.6
	 	 EXERCISE PERIOD
	  	 	7	  
	 6.7
	 	 OPTION EXERCISE
	  	 	7	  
	 6.8
	 	 NONTRANSFERABILITY OF OPTION
	  	 	8	  
	 6.9
	 	 TERMINATION OF EMPLOYMENT OR SERVICE
	  	 	8	  
	 6.10
	 	 EMPLOYMENT RIGHTS
	  	 	9	  
	 6.11
	 	 CERTAIN SUCCESSOR OPTIONS
	  	 	9	  
	 6.12
	 	 EFFECT OF A CORPORATE TRANSACTION
	  	 	9	  
			
	 ARTICLE 7
	 	STOCK CERTIFICATES	  	 	9	  
			
	 ARTICLE 8
	 	TERMINATION AND AMENDMENT	  	 	9	  
	 8.1
	 	 TERMINATION AND AMENDMENT
	  	 	9	  
	 8.2
	 	 EFFECT ON GRANTEE’S RIGHTS
	  	 	10	  
			
	 ARTICLE 9
	 	RELATIONSHIP TO OTHER COMPENSATION PLANS	  	 	10	  
			
	 ARTICLE 10
	 	MISCELLANEOUS	  	 	10	  
	 10.1
	 	 REPLACEMENT OR AMENDED GRANTS
	  	 	10	  
	 10.2
	 	 FORFEITURE FOR COMPETITION
	  	 	10	  
	 10.3
	 	 LEAVE OF ABSENCE
	  	 	10	  
	 10.4
	 	 PLAN BINDING ON SUCCESSORS
	  	 	11	  
	 10.5
	 	 SINGULAR, PLURAL; GENDER
	  	 	11	  
	 10.6
	 	 HEADINGS, ETC., NO PART OF
PLAN
	  	 	11	  
	 10.7
	 	 SECTION 16 COMPLIANCE
	  	 	11	  

  
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	EXHIBIT A	 	TO AMENDED AND RESTATED BENEFITFOCUS.COM, INC. 2000 STOCK OPTION PLAN -FORM OF STOCK OPTION AGREEMENT	  	A-1
		
	SCHEDULE A	  	

  
 ii 

 AMENDED AND RESTATED 

BENEFITFOCUS.COM, INC. 
 2000 STOCK OPTION PLAN 
 This Plan is an amendment and complete restatement
of the Benefitfocus.com, Inc. 2000 Stock Option Plan (the “Original Plan”). 
 ARTICLE 1 

DEFINITIONS 
 As used in this Plan, the following terms have the following meanings unless the context clearly indicates to the contrary: 
 “Board” means the Board of Directors of the Company. 

“Cause” means (i) the commission of an act of fraud, embezzlement, theft or proven dishonesty, or any other illegal
act or practice (whether or not resulting in criminal prosecution or conviction), including theft or destruction of property of the Company, a Parent, or a Subsidiary, or any other act or practice which the Committee shall, in good faith, deem to
have resulted in the recipient’s becoming unbondable under the Company’s, a Parent’s or any Subsidiary’s fidelity bond; (ii) the willful engaging in misconduct which is deemed by the Committee, in good faith, to be
materially injurious to the Company, a Parent or any Subsidiary, monetarily or otherwise, including, but not limited, improperly disclosing trade secrets or other confidential or sensitive business information and data about the Company, a Parent or
any Subsidiaries and competing with the Company, a Parent or any Subsidiaries, or soliciting employees, consultants or customers of the Company, a Parent or any Subsidiaries in violation of law or any employment or other agreement to which the
recipient is a party; (iii) the willful and continued failure or habitual neglect by a person who is an Employee to perform his or her duties with the Company, a Parent or any Subsidiary substantially in accordance with the operating and
personnel policies and procedures of the Company, Parent or the Subsidiary generally applicable to all their employees; or (iv) other disregard of rules or policies of the Company, a Parent or any Subsidiary, or conduct evincing willful or
wanton disregard of the interests of the Company, a Parent or any Subsidiary. For purposes of this Plan, no act or failure to act by the recipient shall be deemed be “willful” unless done or omitted to be done by recipient not in good
faith and without reasonable belief that the recipient’s action or omission was in the best interest of the Company and/or the Subsidiary. Notwithstanding the foregoing, if the recipient has entered into an employment agreement that is binding
as of the date of employment termination, and if such employment agreement defines “Cause,” then the definition of “Cause” in such agreement shall apply to the recipient in this Plan. “Cause” shall be determined by the
Committee based upon information presented by the Company and the Employee and shall be final and binding on all parties hereto. 
 “Code” means the United States Internal Revenue Code of 1986, as amended, including effective date and transition rules (whether or not codified). Any reference herein to a specific
section of the Code shall be deemed to include a reference to any corresponding provision of future law. 

“Committee” means a committee of at least two Directors appointed from time to time by the Board, having the duties and
authority set forth herein in addition to any other authority granted by the Board; provided, however, that with respect to any Options granted to an individual who is also a Section 16 Insider, the Committee shall consist of either the entire
Board of Directors or a committee of at least two Directors (who need not be members of the Committee with respect to Options granted to any other individuals) who are Non-Employee Directors, and all authority and discretion shall be exercised by
such Non-Employee Directors, and references herein to the “Committee” means such Non-Employee Directors insofar as any actions or determinations of the Committee shall relate to or affect Options made to or held by any Section 16
Insider. In selecting the Committee, the Board shall also consider the benefits under Section 162(m) of the Code of having a Committee composed of “outside directors” (as that term is defined in the Code) for certain grants of Options
to highly compensated executives. At any time that the Board shall not have appointed a committee as described above, any reference herein to the Committee means a reference to the Board. 

“Company” means Benefitfocus.com, Inc., a South Carolina corporation. 

 “Corporate Transaction” means any of the following transactions to which
the Company is a party: 
  

	 	(i)	a merger, consolidation, share exchange, combination or other transaction or series of transactions (other than a public offering by the Company for cash of the
Company’s capital stock, debt or other securities) in which securities possessing more than 50% of the total combined voting power of the Company’s outstanding securities are transferred to a person or persons different from the persons
holding those securities immediately prior to such transaction; 

  

	 	(ii)	the sale, transfer or other disposition of all or substantially all of the Company’s assets; 

 

	 	(iii)	the liquidation or dissolution of the Company; or 

  

	 	(iv)	in lieu of subparagraphs (i) through (iii) above, with respect to any Discount Options, any of the transactions which would constitute a change of ownership
or effective control, or a change in the ownership of a substantial portion of the assets, of the Company pursuant to Section 1.409A-3(g)(5) of the Proposed Treasury Regulations, as the same may be modified in any successor or final version of
the Treasury Regulations. 

 “Director” means a member of the Board and any person who is an
advisory or honorary director of the Company if such person is considered a director for the purposes of Section 16 of the Exchange Act, as determined by reference to such Section 16 and to the rules, regulations, judicial decisions, and
interpretative or “no-action” positions with respect thereto of the SEC, as the same may be in effect or set forth from time to time. 
 “Discount Option” means any option the Exercise Price of which is less than the Fair Market Value of the Stock on the date of grant of such option. 

“Employee” means an employee (as defined in Section 3401(c) of the Code and the regulations promulgated thereunder)
of the Company or a Parent or Subsidiary. 
 “Exchange Act” means the Securities Exchange Act of 1934. Any
reference herein to a specific section of the Exchange Act shall be deemed to include a reference to any corresponding provision of future law. 
 “Exercise Price” means the price at which an Optionee may purchase a share of Stock under a Stock Option Agreement. 

“Fair Market Value” on any date means (i) if the Stock is readily tradable on an established securities market (as
defined in Section 1.897-1(m) of the Treasury Regulations), the closing sales price of the Stock on the trading day immediately preceding such date on the securities exchange having the greatest volume of trading in the Stock during the
thirty-day period preceding the day the value is to be determined or, if such exchange was not open for trading on such date, the next preceding date on which it was open; (ii) if the Stock is not traded on an established securities market (as
defined in Section 1.897-1(m) of the Treasury Regulations), the fair market value as determined in good faith by the Board or the Committee by application of a reasonable valuation method consistently applied and taking into consideration all
available information material to the value of the Company; factors to be considered may include, as applicable, the value of tangible and intangible assets of the Company, the present value of future cash-flows of the Company, the market value of
stock or equity interests in similar corporations which can be readily determined through objective means (such as through trading prices on an established securities market or an amount paid in an arm’s length private transaction), and other
relevant factors such as control premiums or discounts for lack of marketability. For purposes of the foregoing sentence, a valuation prepared in accordance with any of the methods set forth in Section 1.409A-1(b)(5)(iv)(B)(2) of the Proposed
Treasury Regulations, as the same may be modified in any successor or final version of the Treasury Regulations, consistently used, shall be rebuttably presumed to result in a reasonable valuation. This paragraph is intended to comply with the
definition of “fair market value” contained in Section 1.409A-1(b)(5)(iv) of the Proposed Treasury Regulations, as the same may be modified in any successor or final version of the Treasury Regulations, and should be interpreted
consistently therewith. 

  
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 “Grantee” means a person who is an Optionee. 

“Incentive Stock Option” means an option to purchase any stock of the Company, which complies with and is subject to the
terms, limitations and conditions of Section 422 of the Code and any regulations promulgated with respect thereto. 

“Non-Employee Director” shall have the meaning set forth in Rule 16b-3 under the Exchange Act, as the same may be in
effect from time to time, or in any successor rule thereto, shall be determined for all purposes under the Plan according to interpretative or “no-action” positions with respect thereto issued by the SEC. 

“Officer” means a person who constitutes an officer of the Company for the purposes of Section 16 of the Exchange
Act, as determined by reference to such Section 16 and to the rules, regulations, judicial decisions, and interpretative or “no-action” positions with respect to such rule of the SEC, as the same may be in effect or set forth from
time to time. 
 “Option” means an option, whether or not an Incentive Stock Option, to purchase Stock granted
pursuant to the provisions of Article 6 of this Plan. 
 “Optionee” means a person to whom an Option has been
granted under this Plan. 
 “Parent” means any corporation (other than the Company) in an unbroken chain of
corporations ending with the Company if, at the time of the grant (or modification) of the Option, each of the corporations other than the Company owns stock possessing 50 percent or more of the total combined voting power of the classes of stock in
one of the other corporations in such chain. 
 “Permanent and Total Disability” has the same meaning as given
to that term by Code Section 22(e)(3) and any regulations or rulings promulgated thereunder. 
 “Plan”
means the Amended and Restated Benefitfocus.com, Inc. 2000 Stock Option Plan, the terms of which are set forth herein. 

“Proposed Treasury Regulations” means regulations proposed by the United States Department of Treasury pursuant to the
Code. 
 “Purchasable” refers to Stock which may be purchased by an Optionee under the terms of this Plan on or
after a certain date or the happening of a certain event specified in the applicable Stock Option Agreement. 

“Qualified Domestic Relations Order” has the meaning set forth in the Code or in the Employee Retirement Income Security
Act of 1974, or the rules and regulations promulgated under the Code or such Act. 
 “SEC” means the United
States Securities and Exchange Commission. 
 “Section 16 Insider” means any person who is subject to the
provisions of Section 16 of the Exchange Act, as provided in Rule 16a-2 promulgated pursuant to the Exchange Act. 

“Stock” means the common stock, no par value per share, of the Company or, in the event that the outstanding shares of
Stock are hereafter changed into or exchanged for shares of a different class of stock of the Company or some other entity, such other stock; provided, however, that with respect to any Discount Options, such other stock must be common stock and
meet the requirements of Section 1.409A-1(b)(5)(iii) of the Proposed Treasury Regulations, as the same may be modified in any successor or final version of the Treasury Regulations. 

“Stock Option Agreement” means an agreement between the Company and an Optionee under which the Optionee may purchase
Stock under this Plan, a sample form of which is attached hereto as Exhibit A (which form may be varied by the Committee in granting an Option). 

  
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 “Subsidiary” means any corporation (other than the Company) in an unbroken
chain of corporations beginning with the Company if, at the time of the grant (or modification) of the Option, each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50 percent or more of the total
combined voting power of all classes of stock in one of the other corporations in such chain. 
 “Treasury
Regulations” means final regulations issued by the United States Department of Treasury pursuant to the Code. 

ARTICLE 2 

THE PLAN 

2.1 Name. This Plan shall be known as the “Amended and Restated Benefitfocus.com, Inc. 2000 Stock Option Plan.”

 2.2 Purpose. The purpose of the Plan is to advance the interests of the Company, its Subsidiaries and its shareholders
by affording certain Employees, Officers and Directors of the Company and its Subsidiaries, as well as key consultants and advisors to the Company or any Subsidiary, an opportunity to acquire or increase their proprietary interests in the Company.
The objective of the issuance of the Options is to promote the growth and profitability of the Company and its Subsidiaries because the Grantees will be provided with an additional incentive to achieve the Company’s objectives through
participation in its success and growth and by encouraging their continued association with or service to the Company. 
 2.3
Effective Date. The Plan shall become effective on the date of its adoption by the Board; provided, however, that if the Company’s shareholders have not approved the Plan on or prior to the first anniversary of such effective date, then
all options granted under the Plan on or after the Effective Date shall be non-Incentive Stock Options. 
 ARTICLE 3

 PARTICIPANTS 
 The class of persons eligible to participate in the Plan shall consist of all persons whose participation in the Plan the Committee determines to be in the best interests of the Company, which shall
include, but not be limited to, all Officers, Directors and Employees of the Company or any Parent or Subsidiary, as well as key consultants and advisors to the Company or any Parent or Subsidiary; provided, however, that Incentive Stock Options may
only be issued to Employees. 
 ARTICLE 4 
 ADMINISTRATION 
 4.1 Duties and Powers of the Committee. The Plan
shall be administered by the Committee. The Committee shall select one of its members as its Chairman and shall hold its meetings at such times and places as it may determine. The Committee shall keep minutes of its meetings and shall make such
rules and regulations for the conduct of its business as it may deem necessary. The Committee shall have the power to act by unanimous written consent in lieu of a meeting, and to meet telephonically. In administering the Plan, the Committee’s
actions and determinations shall be binding on all interested parties. The Committee shall have the power to grant Options in accordance with the provisions of the Plan. Subject to the provisions of the Plan, the Committee shall have the discretion
and authority to determine those individuals to whom Options will be granted, the number of shares of Stock subject to each Option, such other matters as are specified herein, and any other terms and conditions of a Stock Option Agreement. The
Committee shall also have the discretion and authority to delegate to any Officer its powers to grant Options under the Plan to any person who is an Employee, but not an Officer or Director, of the Company or any Parent or Subsidiary. To the extent
not inconsistent with the provisions of the Plan, the Committee may give a Grantee an election to surrender an Option in exchange for the grant of a new Option, and shall have the authority to amend or modify an outstanding Stock Option Agreement,
or to waive any provision thereof, provided that the Grantee consents to such action. 

  
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 4.2 Interpretation; Rules. Subject to the express provisions of the Plan, the
Committee also shall have complete authority to interpret the Plan, to prescribe, amend, and rescind rules and regulations relating to it, to determine the details and provisions of each Stock Option Agreement, and to make all other determinations
necessary or advisable for the administration of the Plan, including, without limitation, the amending or altering of the Plan and any Options granted under the Plan as may be required to comply with or to conform to any federal, state, or local
laws or regulations. 
 4.3 No Liability. Neither any member of the Board nor any member of the Committee shall be liable
to any person for any act or determination made in good faith with respect to the Plan or any Option granted hereunder. 
 4.4
Majority Rule. A majority of the members of the Committee shall constitute a quorum, and any action taken by a majority at a meeting at which a quorum is present, or any action taken without a meeting evidenced by a writing executed by all
the members of the Committee, shall constitute the action of the Committee. 
 4.5 Company Assistance. The Company shall
supply full and timely information to the Committee on all matters relating to eligible persons, their employment, death, retirement, disability, or other termination of employment, and such other pertinent facts as the Committee may require. The
Company shall furnish the Committee with such clerical and other assistance as is necessary in the performance of its duties. 

ARTICLE 5 

SHARES OF STOCK SUBJECT TO PLAN 
 5.1 Limitations. Subject to any antidilution adjustment pursuant to the provisions of Section 5.2 of this Plan, the maximum number of shares of Stock that may be issued hereunder shall be
4,044,525, including shares that may be issued upon the exercise of options that have already been granted under the Original Plan. The amount of Stock subject to the Plan may be increased from time to time in accordance with Article 8, provided
that the total number of shares of Stock issuable pursuant to Incentive Stock Options may not be increased to more than 3,572,275, including shares that may be issued upon the exercise of Incentive Stock Options that have already been granted under
the Original Plan (other than pursuant to anti-dilution adjustments) or as described above without shareholder approval. Shares subject to an Option may be either authorized and unissued shares or shares issued and later acquired by the Company. The
shares covered by any unexercised portion of an Option that has terminated for any reason (except as set forth in the following paragraph), may again be granted under the Plan, and such shares shall not be considered as having been optioned or
issued in computing the number of shares of Stock remaining available for option hereunder. 
 If Options are issued in respect
of options to acquire stock of any entity acquired, by merger or otherwise, by the Company (or any Subsidiary of the Company), to the extent that such issuance shall not be inconsistent with the terms, limitations and conditions of Code section 422
or Rule 16b3 under the Exchange Act, the aggregate number of shares of Stock for which Options may be granted hereunder shall automatically be increased by the number of shares subject to the Options so issued; provided, however, that the aggregate
number of shares of Stock for which Options may be granted hereunder shall automatically be decreased by the number of shares covered by any unexercised portion of an Option so issued that has terminated for any reason, and the shares subject to any
such unexercised portion may not be optioned to any other person. 
 5.2 Antidilution. 

(a) If the outstanding shares of Stock are changed into or exchanged for a different number or kind of shares of Stock of the Company by
reason of a merger, consolidation, reorganization, recapitalization, reclassification, combination or exchange of shares, or stock split or stock dividend (other than an event covered by subsection (c) below), the Committee shall appropriately
adjust (i) the aggregate number and kind of shares of Stock for which Options may be granted hereunder, and (ii) the rights of Optionees (concerning the number of shares subject to Options and the Exercise Price) under outstanding Options
and the rights of the holders of Awards. 

  
 5 

 (b) If any spin-off, spin-out or other distribution of assets materially affects the price
of the Company’s Stock, or if there is any assumption and conversion to the Plan by the Company of an acquired company’s outstanding option grants, then the Committee may, but need not, make any or all of the adjustments specified in
subsections (a)(i) and (a)(ii) above. 
 (c) If the Company shall be a party to any Corporate Transaction in which it does not
survive, the Committee, in its discretion, may, but shall not be required to: 
 (i) notwithstanding other
provisions of this Plan, declare that all Options granted under the Plan shall become exercisable immediately notwithstanding the provisions of the respective Stock Option Agreements regarding exercisability, that all such Options shall terminate 30
days after the Committee gives written notice of the immediate right to exercise all such Options and of the decision to terminate all Options not exercised within such 30-day period; and/or 

(ii) notify all Grantees that all Options granted under the Plan shall be assumed by the successor corporation or
substituted on an equitable basis with options issued by such successor corporation. 
 (d) If the Company is to be liquidated
or dissolved in connection with a Corporate Transaction described in Section 5.2(c), the provisions of such Section shall apply. In all other instances, the adoption of a plan of dissolution or liquidation of the Company shall, notwithstanding
other provisions hereof, cause every Option outstanding under the Plan to terminate to the extent not exercised prior to the adoption of the plan of dissolution or liquidation by the shareholders, provided that, notwithstanding other provisions
hereof, the Committee may declare all Options granted under the Plan to be exercisable at any time on or before the fifth business day following such adoption notwithstanding the provisions of the respective Stock Option Agreements regarding
exercisability. 
 (e) The adjustments described in paragraphs (a) through (d) of this Section 5.2, and the
manner of their application, shall be determined solely by the Committee, and any such adjustment may provide for the elimination of fractional share interests; provided, however, that any adjustment made by the Committee shall be made in a manner
that will not cause an Incentive Stock Option to be other than an Incentive Stock Option under applicable statutory and regulatory provisions. The adjustments required under this Article 5 shall apply to any successors of the Company and shall be
made regardless of the number or type of successive events requiring such adjustments. 
 ARTICLE 6 

OPTIONS 

6.1 Types of Options Granted. The Committee may, under this Plan, grant either Incentive Stock Options or Options which do not
qualify as Incentive Stock Options. Within the limitations provided in this Plan, both types of Options may be granted to the same person at the same time, or at different times, under different terms and conditions, as long as the terms and
conditions of each Option are consistent with the provisions of the Plan. Without limitation of the foregoing, Options may be granted subject to conditions based on the financial performance of the Company or any other factor the Committee deems
relevant. 
 6.2 Option Grant and Agreement. Each Option granted hereunder shall be evidenced by minutes of a meeting or
the written consent of the Committee and by a written Stock Option Agreement executed by the Company and the Optionee. The terms of the Option, including the Option’s duration, time or times of exercise, Exercise Price, whether the Option is
intended to be an Incentive Stock Option, shall be stated in the Stock Option Agreement. No Incentive Stock Option may be granted more than ten years after the earlier to occur of the effective date of the Plan or the date the Plan is approved by
the Company’s shareholders. 
 Separate Stock Option Agreements may be used for Options intended to be Incentive Stock
Options and those not so intended, but any failure to use such separate agreements shall not invalidate, or otherwise adversely affect the Optionee’s interest in, the Options evidenced thereby. 

  
 6 

 6.3 Optionee Limitations. The Committee shall not grant an Incentive Stock Option to
any person who, at the time the Incentive Stock Option is granted: 
 (a) is not an Employee; or 

(b) owns or is considered to own stock possessing at least 10% of the total combined voting power of all classes of stock of the Company
or any of its Parent or Subsidiary corporations; provided, however, that this limitation shall not apply if at the time an Incentive Stock Option is granted the Exercise Price is at least 110% of the Fair Market Value of the Stock subject to such
Option and such Option by its terms would not be exercisable after five years from the date on which the Option is granted. For the purpose of this subsection (b), a person shall be considered to own: (i) the stock owned, directly or
indirectly, by or for his or her brothers and sisters (whether by whole or half blood), spouse, ancestors and lineal descendants; (ii) the stock owned, directly or indirectly, by or for a corporation, partnership, estate, or trust in proportion
to such person’s stock interest, partnership interest or beneficial interest therein; and (iii) the stock which such person may purchase under any outstanding options of the Company or of any Parent or Subsidiary of the Company.

 6.4 $100,000 AND SECTION 162(m) LIMITATIONS. Except
as provided below, the Committee shall not grant an Incentive Stock Option to, or modify the exercise provisions of outstanding Incentive Stock Options held by, any person who, at the time the Incentive Stock Option is granted (or modified), would
thereby receive or hold any Incentive Stock Options of the Company and any Parent or Subsidiary of the Company, such that the aggregate Fair Market Value (determined as of the respective dates of grant or modification of each option) of the stock
with respect to which such Incentive Stock Options are exercisable for the first time during any calendar year is in excess of $100,000 (or such other limit as may be prescribed by the Code from time to time); provided that the foregoing
restriction on modification of outstanding Incentive Stock Options shall not preclude the Committee from modifying an outstanding Incentive Stock Option if, as a result of such modification and with the consent of the Optionee, such Option no longer
constitutes an Incentive Stock Option; and provided that, if the $100,000 limitation (or such other limitation prescribed by the Code) described in this Section 6.4 is exceeded, the Incentive Stock Option, the granting or modification of which
resulted in the exceeding of such limit, shall be treated as an Incentive Stock Option up to the limitation and the excess shall be treated as an Option not qualifying as an Incentive Stock Option. 

6.5 Exercise Price. The Exercise Price of the Stock subject to each Option shall be determined by the Committee. Subject to the
provisions of Section 6.3(b) hereof, the Exercise Price of an Incentive Stock Option shall not be less than the Fair Market Value of the Stock as of the date the Option is granted (or in the case of an Incentive Stock Option that is
subsequently modified, on the date of such modification). 
 6.6 Exercise Period. The period for the exercise of each
Option granted hereunder shall be determined by the Committee, but the Stock Option Agreement with respect to each Option intended to be an Incentive Stock Option shall provide that such Option shall not be exercisable after the expiration of ten
years from the date of grant (or modification) of the Option. In addition, no Incentive Stock Option granted under the Plan shall be exercisable prior to shareholder approval of the Plan. Any Discount Option must be exercised no later than
March 15 of the year following the calendar year in which such option vests. 
 6.7 Option Exercise. 

(a) Unless otherwise provided in the Stock Option Agreement or Section 6.6 of this Plan, an Option may be exercised at any time or
from time to time during the term of the Option as to any or all full shares which have become Purchasable under the provisions of the Option, but not at any time as to fewer than 100 shares unless the remaining shares that have become so
Purchasable are fewer than 100 shares. The Committee shall have the authority to prescribe in any Stock Option Agreement that the Option may be exercised only in accordance with a vesting schedule during the term of the Option. 

(b) An Option shall be exercised by (i) delivery to the Company at its principal office a written notice of exercise with respect to
a specified number of shares of Stock and (ii) payment to the Company at that office of the full amount of the Exercise Price for such number of shares in accordance with Section 6.7(c). If requested by an Optionee, an Option may be
exercised with the involvement of a stockbroker in accordance with the federal margin rules set forth in Regulation T (in which case the certificates representing the underlying shares will be delivered by the Company directly to the stockbroker).

  
 7 

 (c) The Exercise Price is to be paid in full in cash upon the exercise of the Option, and
the Company shall not be required to deliver certificates for the shares purchased until such payment has been made; provided, however, that in lieu of cash, in the Company’s sole discretion, all or any portion of the Exercise Price may be paid
by tendering to the Company shares of Stock duly endorsed for transfer and owned by the Optionee, or by authorization to the Company to withhold shares of Stock otherwise issuable upon exercise of the Option, in each case to be credited against the
Exercise Price at the Fair Market Value of such shares on the date of exercise (however, no fractional shares may be so transferred, and the Company shall not be obligated to make any cash payments in consideration of any excess of the aggregate
Fair Market Value of shares transferred over the aggregate Exercise Price); provided further, that the Board may provide in a Stock Option Agreement (or may otherwise determine in its sole discretion at the time of exercise) that, in lieu of cash or
shares, all or a portion of the Exercise Price may be paid by the Optionee’s execution of a recourse note equal to the Exercise Price or relevant portion thereof, subject to compliance with applicable state and federal laws, rules and
regulations. 
 (d) In addition to and at the time of payment of the Exercise Price, the Optionee shall pay to the Company in
cash the full amount of any federal, state, and local income, employment, or other withholding taxes applicable to the taxable income of such Optionee resulting from such exercise; provided, however, that in the discretion of the Committee any Stock
Option Agreement may provide that all or any portion of such tax obligations, together with additional taxes not exceeding the actual additional taxes to be owed by the Optionee as a result of such exercise, may, upon the irrevocable election of the
Optionee, be paid by tendering to the Company whole shares of Stock duly endorsed for transfer and owned by the Optionee, or by authorization to the Company to withhold shares of Stock otherwise issuable upon exercise of the Option, in either case
in that number of shares having a Fair Market Value on the date of exercise equal to the amount of such taxes thereby being paid, and subject to such restrictions as to the approval and timing of any such election as the Committee may from time to
time determine to be necessary or appropriate to satisfy the conditions of the exemption set forth in Rule 16b-3 under the Exchange Act, if such rule is applicable. 
 (e) The holder of an Option shall not have any of the rights of a shareholder with respect to the shares of Stock subject to the Option until such shares have been issued and transferred to the Optionee
upon the exercise of the Option. 
 6.8 Nontransferability of Option. Other than as provided below, no Option shall be
transferable by an Optionee other than by will or the laws of descent and distribution or, in the case of non-Incentive Stock Options, pursuant to a Qualified Domestic Relations Order, and, during the lifetime of an Optionee, Options shall be
exercisable only by such Optionee (or by such Optionee’s guardian or legal representative, should one be appointed). However, in connection with the Optionee’s estate plan, a Non-Incentive Stock Option may be assigned in whole or in part
during Optionee’s lifetime to one or more members of the Optionee’s immediate family (consisting of the Optionee’s spouse and lineal descendants) or to a trust or entity established for the exclusive benefit of one or more such family
members. The assigned portion shall be exercisable only by the person or persons who acquire a proprietary interest in the Option pursuant to such assignment. The terms applicable to the assigned portion shall be the same as those in effect for this
Option immediately prior to such assignment and shall be set forth in such documents issued to the assignee as the Committee may deem appropriate. 
 6.9 Termination of Employment or Service. The Committee shall have the power to specify, with respect to the Options granted to a particular Optionee, the effect upon such Optionee’s right to
exercise an Option of termination of such Optionee’s employment or service under various circumstances, which effect may include immediate or deferred termination of such Optionee’s rights under an Option, or acceleration of the date at
which an Option may be exercised in full; provided, however, that in no event may an Incentive Stock Option be exercised after the expiration of ten years from the date of its grant; and provided further, that the exercise period for any Discount
Option may not be accelerated except as permitted by Section 1.409A-3(h) of the Proposed Treasury Regulations, as the same may be modified in any successor or final version of the Treasury Regulations, and may not be exercised later than the
date as provided in Section 6.6. 

  
 8 

 6.10 Employment Rights. Nothing in the Plan or in any Stock Option Agreement shall
confer on any person any right to continue in the employ of the Company or any Parent or Subsidiary of the Company, or shall interfere in any way with the right of the Company or any Parent or Subsidiary of the Company to terminate such
person’s employment at any time. 
 6.11 Certain Successor Options. To the extent not inconsistent with the terms,
limitations and conditions of Code section 422 and any regulations promulgated with respect thereto, an Option issued in respect of an option held by an Employee to acquire stock of any entity acquired, by merger or otherwise, by the Company (or any
Parent or Subsidiary of the Company) may contain terms that differ from those stated in this Article 6, but solely to the extent necessary to preserve for any such employee the rights and benefits contained in such predecessor option, or to satisfy
the requirements of Code section 424(a). 
 6.12 Effect of a Corporate Transaction. All Options, to the extent
outstanding at the time of a Corporate Transaction but not otherwise fully exercisable, may be accelerated in the discretion of the Committee and in accordance with a stock option agreement such that certain or all Options that were not exercisable
prior to the Corporate Transaction become exercisable, immediately prior to the effective date of the Corporate Transaction, for certain or all shares at the time subject to such Options. 

ARTICLE 7 

STOCK CERTIFICATES 
 The Company shall not be required to issue or deliver any certificate for shares of Stock purchased upon the exercise of any Option granted hereunder or any portion thereof, prior to fulfillment of all of
the following conditions: 
 (a) The admission of such shares to listing on all stock exchanges on which the Stock is then
listed; 
 (b) The completion of any registration or other qualification of such shares which the Committee shall deem necessary
or advisable under any federal or state law or under the rulings or regulations of the SEC or any other governmental regulatory body, or the determination by the Company, with the advice of legal counsel, that exemptions are available from such
registration and qualification; 
 (c) The obtaining of any approval or other clearance from any federal or state governmental
agency or body which the Committee shall determine to be necessary or advisable; and 
 (d) The lapse of such reasonable period
of time following the exercise of the Option as the Board from time to time may establish for reasons of administrative convenience. 
 Stock certificates issued and delivered to Grantees shall bear such restrictive legends as the Company shall deem necessary or advisable pursuant to applicable federal and state securities laws. The
inability of the Company to obtain approval from any regulatory body having authority deemed by the Company to be necessary to the lawful issuance and sale of any Stock pursuant to Options shall relieve the Company of any liability with respect to
the non-issuance or sale of the Stock as to which such approval shall not have been obtained. The Company shall, however, use its best efforts to obtain all such approvals. 
 ARTICLE 8 
 TERMINATION AND AMENDMENT 

8.1 Termination and Amendment. The Board may at any time terminate the Plan; provided, however, that the Board (unless its actions
are approved or ratified by the shareholders of the Company within twelve months of the date that the Board amends the Plan) may not amend the Plan to: 
 Increase the total number of shares of Stock issuable pursuant to Incentive Stock Options under the Plan, except as contemplated in Section 5.2; or 

  
 9 

 Change the class of employees eligible to receive Incentive Stock Options that may
participate in the Plan. 
 8.2 Effect on Grantee’s Rights. No termination, amendment, or modification of the Plan
shall affect adversely a Grantee’s rights under a Stock Option Agreement without the consent of the Grantee or his legal representative. 
 ARTICLE 9 
 RELATIONSHIP TO OTHER COMPENSATION PLANS 

The adoption of the Plan shall not affect any other stock option, incentive, or other compensation plans in effect for the Company or any
of its Subsidiaries, except the Original Plan as set forth herein; nor shall the adoption of the Plan preclude the Company or any Parent or Subsidiary of the Company from establishing any other form of incentive or other compensation plan for
Employees, Officers or Directors of the Company or any Parent or Subsidiary of the Company. 
 ARTICLE 10 

MISCELLANEOUS 
 10.1 Replacement or Amended Grants. At the sole discretion of the Committee, and subject to the terms of the Plan, the Committee may modify outstanding Options or accept the surrender of
outstanding Options and grant new Options in substitution for them, provided that no modification of an Option may be made which would adversely affect a Grantee’s rights under a Stock Option Agreement or result in any tax to such Grtantee
pursuant to Section 409A of the Code without the consent of the Grantee or his legal representative. 
 10.2 Forfeiture
for Competition. If a Grantee provides services to a competitor of the Company, a Parent or any Subsidiaries, whether as an employee, officer, director, independent contractor, consultant, agent, or otherwise, such services being of a nature
that can reasonably be expected to involve the skills and experience used or developed by the Grantee while an Employee, then that Grantee’s rights under any Options outstanding hereunder shall be forfeited and terminated, subject to a
determination to the contrary by the Committee. 
 10.3 Leave of Absence. Unless provided otherwise in a particular Stock
Option Agreement, and except with respect to a Discount Option, the following provisions shall apply upon an Optionee’s commencement of an authorized leave of absence: 
 (a) The exercise schedule in effect for such Option shall be frozen as of the first day of the authorized leave, and the Option shall not become exercisable for any additional installments of shares of
Stock during the period Optionee remains on such leave. 
 (b) Should Optionee resume active Employee status within 60 days
after the start date of the authorized leave, Optionee shall, for purposes of the applicable exercise schedule, receive service credit for the entire period of such leave. If Optionee does not resume active Employee status within such 60-day period,
then no credit shall be given for the entire period of such leave. 
 (c) If the Option is an Incentive Stock Option, then the
following shall also apply: 
 If the leave of absence continues for more than three months, then the Option
shall automatically convert to a Non-Incentive Stock Option under the Federal tax laws upon the expiration of such three-month period, unless the Optionee’s reemployment rights are guaranteed by statute or written agreement. Following any such
conversion of the Option, all subsequent exercises of the Option, whether effected before or after Optionee’s return to active Employee status, shall result in an immediate taxable event, and the Company shall be required to collect from
Optionee the Federal, state and local income and employment withholding taxes applicable to such exercise. 
 (d) In no event
shall the Option become exercisable for any additional shares or otherwise remain outstanding if the Optionee does not resume Employee status prior to the Expiration Date of the option term. 

  
 10 

 10.4 Plan Binding on Successors. The Plan shall be binding upon the successors and
assigns of the Company. 
 10.5 Singular, Plural; Gender. Whenever used in this Plan, nouns in the singular shall include
the plural, and the masculine pronoun shall include the feminine gender. 
 10.6 Headings, etc., No Part of Plan.
Headings of Articles and Sections of this Plan are inserted for convenience and reference; they do not constitute part of the Plan. 
 10.7 Section 16 Compliance. With respect to Section 16 Insiders and “highly-compensated” persons under Section 162(m) of the Code, transactions under this Plan are intended
to comply with all applicable conditions of Rule 16b-3 or its successors under the Exchange Act and with Section 162(m) of the Code. To the extent any provision of the Plan or action by the Committee fails to so comply, it shall be deemed void
to the extent permitted by law and deemed advisable by the Committee. In addition, if necessary to comply with Rule 16b3 with respect to any grant of an Option hereunder, and in addition to any other vesting or holding period specified hereunder or
in an applicable Stock Option Agreement, any Section 16 Insider acquiring an Option shall be required to hold either the Option or the underlying shares of Stock obtained upon exercise of the Option for a minimum of six months. 

  
 11EX-10.4

 Exhibit 10.4 
 BENEFITFOCUS.COM, INC. 
 2012 STOCK PLAN 

1. Purpose. This 2012 Stock Plan (the “Plan”) is intended to provide incentives: 

(a) to employees of Benefitfocus.com, Inc., a South Carolina corporation (the “Company”), or its parent (if any)
or any of its present or future subsidiaries (collectively, “Related Corporations”), by providing them with opportunities to purchase Common Stock (as defined below) of the Company pursuant to options granted hereunder that qualify as
“incentive stock options” (“ISOs”) under Section 422 of the Internal Revenue Code of 1986, as amended, or any successor statute (the “Code”); 

(b) to directors, employees and consultants of the Company and Related Corporations by providing them with opportunities to purchase
Common Stock of the Company pursuant to options granted hereunder that do not qualify as ISOs (Nonstatutory Stock Options, or “NSOs”); 
 (c) to employees and consultants of the Company and Related Corporations by providing them with bonus awards of Common Stock of the Company (“Stock Bonuses”); and 

(d) to employees and consultants of the Company and Related Corporations by providing them with opportunities to make direct purchases of
Common Stock of the Company (“Purchase Rights”); and 
 (e) to employees and consultants of the Company
and Related Corporations by providing them with the right to receive, without payment to the Company, a number of shares of Common Stock, cash, or any combination thereof determined pursuant to a formula specified herein
(“SARs”). 
 Both ISOs and NSOs are referred to hereafter individually as
“Options,” and Options, Stock Bonuses, Purchase Rights and SARs are referred to hereafter collectively as “Stock Rights.” As used herein, the terms “parent” and “subsidiary” mean
“parent corporation” and “subsidiary corporation,” respectively, as those terms are defined in Section 424 of the Code. 
 2. Administration of the Plan. 
 (a) The Plan shall be administered by
(i) the Board of Directors of the Company (the “Board”) or (ii) a committee consisting of directors or other persons appointed by the Board (the “Committee”). The appointment of the members
of, and the delegation of powers to, the Committee by the Board shall be consistent with applicable laws and regulations (including, without limitation, the Code, Rule 16b-3 promulgated under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), or any successor rule thereto (“Rule 16b-3”), and any applicable state law (collectively, the “Applicable Laws”). Once appointed, such Committee shall continue
to serve in its designated capacity until otherwise directed by the Board. From time to time, the Board may increase the size of the Committee and appoint 

 
additional members thereof, remove members (with or without cause) and appoint new members in substitution therefor, fill vacancies, however caused, and remove all members of the Committee and
thereafter directly administer the Plan, all to the extent permitted by the Applicable Laws. 
 (b) Subject to ratification of
the grant or authorization of each Stock Right by the Board (if so required by an Applicable Law), and subject to the terms of the Plan, the Committee, if so appointed, shall have the authority, in its discretion, to: 

(i) determine the employees of the Company and Related Corporations (from among the class of employees eligible under Section 3 to
receive ISOs) to whom ISOs may be granted, and to determine (from among the classes of individuals and entities eligible under Section 3 to receive NSOs, Stock Bonuses, Purchase Rights and SARs) to whom NSOs, Stock Bonuses, Purchase Rights and
SARs may be granted; 
 (ii) determine the time or times at which Options, Stock Bonuses, Purchase Rights or SARs may be
granted (which may be based on performance criteria); 
 (iii) determine the number of shares of Common Stock subject to any
Stock Right granted by the Committee; 
 (iv) determine the option price of shares subject to each Option, which price shall
not be less than the minimum price specified in Section 6 hereof, as appropriate, the purchase price of shares subject to each Purchase Right and the exercise price of each SAR, and to determine the form of consideration to be paid to the
Company for exercise of such Option or purchase of shares with respect to a Purchase Right; 
 (v) determine whether each
Option granted shall be an ISO or NSO; 
 (vi) determine (subject to Section 7) the time or times when each Option shall
become exercisable and the duration of the exercise period; 
 (vii) determine whether restrictions such as repurchase options
are to be imposed on shares subject to Options, Stock Bonuses and Purchase Rights and the nature of such restrictions, if any; 

(viii) approve forms of agreement for use under the Plan; 
 (ix) determine the Fair Market Value (as defined in Section 6(d) below) of a Stock Right or the Common Stock underlying a Stock Right; 

(x) accelerate vesting on any Stock Right or to waive any forfeiture restrictions, or to waive any other limitation or restriction with
respect to a Stock Right; 

  
 2 

 (xi) reduce the exercise price of any Stock Right if the Fair Market Value of the Common
Stock covered by such Stock Right shall have declined since the date the Stock Right was granted; 
 (xii) institute a program
whereby outstanding Options can be surrendered in exchange for Options with a lower exercise price; 
 (xiii) modify or amend
each Stock Right (subject to Section 8(d) of the Plan) including the discretionary authority to extend the post-termination exercisability period of Stock Rights longer than is otherwise provided for by terms of the Plan or the Stock Right;

 (xiv) construe and interpret the Plan and Stock Rights granted hereunder and prescribe and rescind rules and regulations
relating to the Plan; and 
 (xv) make all other determinations necessary or advisable for the administration of the Plan.

 If the Committee determines to issue a NSO, it shall take whatever actions it deems necessary, under Section 422 of the
Code and the regulations promulgated thereunder, to ensure that such Option is not treated as an ISO. The interpretation and construction by the Committee of any provisions of the Plan or of any Stock Right granted under it shall be final unless
otherwise determined by the Board. The Committee may from time to time adopt such rules and regulations for carrying out the Plan as it may deem best. No member of the Board or the Committee shall be liable for any action or determination made in
good faith with respect to the Plan or any Stock Right granted under it. 
 (c) The Committee may select one of its members as
its chairman, and shall hold meetings at such times and places as it may determine. The Committee shall keep minutes of its meetings and shall make such rules and regulations for the conduct of its business as it may deem necessary. The Committee
shall have the power to act by written consent in lieu of a meeting and to meet telephonically. Acts by a majority of the Committee, approved in person at a meeting or in writing, shall be the valid acts of the Committee. All references in this Plan
to the Committee shall mean the Board if no Committee has been appointed. 
 (d) Those provisions of the Plan that make express
reference to Rule 16b-3 shall apply to the Company only at such time as the Company’s Common Stock is registered under the Exchange Act, and then only to such persons as are required to file reports under Section 16(a) of the Exchange Act
(a “Reporting Person”). 
 (e) To the extent that Stock Rights are to be qualified as
“performance-based” compensation within the meaning of Section 162(m) of the Code, the Plan shall be administered by a committee consisting of two or more “outside directors” as determined under Section 162(m) of the
Code. 

  
 3 

 3. Eligible Employees and Others. 

(a) Eligibility. ISOs may be granted to any employee of the Company or any Related Corporation. Those officers of the Company who
are not employees may not be granted ISOs under the Plan. NSOs, Stock Bonuses, Purchase Rights and SARs may be granted to any director, employee or consultant of the Company or any Related Corporation. Granting of any Stock Right to any individual
or entity shall neither entitle that individual or entity to, nor disqualify him or her from, participation in any other grant of Stock Rights. 
 (b) Special Rule for Grant of Stock Rights to Reporting Persons. The selection of a director or an officer who is a Reporting Person (as the terms “director” and “officer” are
defined for purposes of Rule 16b-3) as a recipient of a Stock Right, the timing of the Stock Right grant, the exercise price, if any, of the Stock Right and the number of shares subject to the Stock Right shall be determined either (i) by the
Board or (ii) by a committee of the Board that is composed solely of two or more Non-Employee Directors having full authority to act in the matter. For the purposes of the Plan, a director shall be deemed to be a “Non-Employee
Director” only if such person is defined as such under Rule 16b-3(b)(3), as interpreted from time to time. 
 (c)
Annual Limitation for Employees. To the extent the Company is subject to Section 162(m) of the Code, no employee shall be eligible to be granted Stock Rights covering more than 4,044,525 shares of Common Stock during any calendar year.

 4. Stock. The stock subject to Stock Rights shall be authorized but unissued shares of Common Stock of the Company, no
par value per share, or such shares of the Company’s capital stock into which such class of shares may be converted pursuant to any reorganization, recapitalization, merger, consolidation or the like (the “Common
Stock”), or shares of Common Stock reacquired by the Company in any manner. The aggregate number of shares that may be issued pursuant to the Plan is 4,044,525 shares of Common Stock, less any shares issued or subject to outstanding
Options under the Company’s Amended and Restated 2000 Stock Option Plan (the “2000 Plan”), subject to adjustment as provided herein. Any such shares may be issued as ISOs, NSOs or Stock Bonuses, or to persons or entities making
purchases pursuant to Purchase Rights or exercises pursuant to SARs, so long as the number of shares so issued does not exceed such aggregate number, as adjusted. To the extent that cash in lieu of shares of Common Stock is delivered upon the
exercise of an SAR pursuant to Section 15, the Company shall be deemed, for purposes of applying the limitation on the number of shares, to have issued the greater of the number of shares of Common Stock which it was entitled to issue upon such
exercise or on the exercise of any related Option. If any Option or SAR granted under the Plan or under the 2000 Plan shall expire or terminate for any reason without having been exercised in full or shall cease for any reason to be exercisable in
whole or in part, or if the Company shall reacquire any shares issued pursuant to Stock Rights, the unpurchased shares subject to such Options and SARs and any shares so reacquired by the Company shall again be available for grants of Stock Rights
under the Plan. Shares of Common Stock which are withheld to pay the exercise price of an Option and/or any related withholding obligations shall not be available for issuance under the Plan. 

  
 4 

 5. Granting of Stock Rights. Stock Rights may be granted under the Plan at any time
after the Effective Date, as set forth in Section 16, and prior to 10 years thereafter. The date of grant of a Stock Right under the Plan will be the date specified by the Board or Committee at the time it grants the Stock Right;
provided, however, that such date shall not be prior to the date on which the Board or Committee acts. The Board or Committee shall have the right, with the consent of the optionee, to convert an ISO granted under the Plan to an NSO
pursuant to Section 17. 
 6. Minimum Price; ISO Limitations. 

(a) The price per share specified in the agreement relating to each NSO, Stock Bonus, Purchase Right or SAR granted under the Plan shall
be established by the Board or Committee, taking into account any noncash consideration to be received by the Company from the recipient of Stock Rights. 
 (b) The price per share specified in the agreement relating to each ISO granted under the Plan shall not be less than the Fair Market Value per share of such Common Stock on the date of such grant. In the
case of an ISO to be granted to an employee owning stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or any Related Corporation, the price per share specified in the agreement relating to such
ISO shall not be less than 110% of the Fair Market Value per share of such Common Stock on the date of the grant. 
 (c) To the
extent that the aggregate Fair Market Value (determined at the time an ISO is granted) of Common Stock for which ISOs granted to any employee are exercisable for the first time by such employee during any calendar year (under all stock option plans
of the Company and any Related Corporation) exceeds $100,000; or such higher value as permitted under Code Section 422 at the time of determination, such Options will be treated as NSOs, provided that this Section shall have no force or effect
to the extent that its inclusion in the Plan is not necessary for Options issued as ISOs to qualify as ISOs pursuant to Section 422 of the Code. The rule of this Section 6(c) shall be applied by taking Options in the order in which they
were granted. 
 (d) “Fair Market Value” on any date means (i) if the Common Stock is readily
tradable on an established securities market (as defined in Section 1.897-1(m) of the final regulations issued by the United States Treasury pursuant to the Code (the “Treasury Regulations”), the closing sales price of
the Common Stock on the trading day immediately preceding such date on the securities exchange having the greatest volume of trading in the Common Stock during the thirty-day period preceding the day the value is to be determined or, if such
exchange was not open for trading on such date, the next preceding date on which it was open; (ii) if the Common Stock is not traded on an established securities market (as defined in Section 1.897-1(m) of the Treasury Regulations), the
fair market value as determined in good faith by the Board of the Committee by application of a reasonable valuation method consistently applied and taking into consideration all available information material to the value of the company; factors to
be considered may include, as applicable, the value of tangible and intangible assets of the Company, the present value of future cash-flows of the Company, the 

  
 5 

 
market value of stock or equity interests in similar corporations which can be readily determined through objective means (such as through trading prices on an established securities market or an
amount paid in an arm’s length private transaction), and other relevant factors such as control premiums or discounts for lack of marketability. For purposes of the foregoing sentence, a valuation prepared in accordance with any of the methods
set forth in Section 1.409A-1(b)(5)(iv)(B)(2) of the Treasury Regulations, consistently used, shall rebuttably be presumed to result in a reasonable valuation. This paragraph is intended to comply with the definition of “fair market
value” contained in Section 1.409A-1(b)(5)(iv) of the Treasury Regulations, and should be interpreted consistently therewith. 
 7. Option Duration. Subject to earlier termination as provided in Sections 9 and 10, each Option shall expire on the date specified by the Board or Committee, but not more than: 

(a) 10 years from the date of grant in the case of NSOs; 
 (b) 10 years from the date of grant in the case of ISOs generally; and 
 (c) five
years from the date of grant in the case of ISOs granted to an employee owning stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or any Related Corporation. 

Subject to earlier termination as provided in Sections 9 and 10, the term of each ISO shall be the term set forth in the original
instrument granting such ISO, except with respect to any part of such ISO that is converted into an NSO pursuant to Section 17. 
 8. Exercise of Options. Subject to the provisions of Section 9 through Section 12 of the Plan, each Option granted under the Plan shall be exercisable as follows: 

(a) the Option shall either be fully exercisable on the date of grant or shall become exercisable thereafter in such installments as the
Board or Committee may specify; 
 (b) once an installment becomes exercisable it shall remain exercisable until expiration or
termination of the Option, unless otherwise specified by the Board or Committee; 
 (c) each Option or installment may be
exercised at any time or from time to time, in whole or in part, for up to the total number of shares with respect to which it is then exercisable; and 
 (d) the Board or Committee shall have the right to accelerate the date of exercise of any installment of any Option, provided that the Board or Committee shall not accelerate the exercise date of any
installment of any ISO granted to any employee (and not previously converted into an NSO pursuant to Section 17) without the prior consent of such employee if such acceleration would violate the annual vesting limitation contained in
Section 422 of the Code, as described in Section 6(c). 

  
 6 

 Notwithstanding anything to the contrary in this Agreement, any Option
with an exercise price less than the Fair Market Value of Common Stock on the date of grant of such Option must be exercised no later than March 15th of the year following the calendar year in which the Option vests. 

9. Termination of Employment. If a grantee ceases to be employed by the Company and all Related Corporations other than by reason
of death or disability as defined in Section 10, unless otherwise specified in the instrument granting such Stock Right, the grantee shall have the continued right to exercise any Stock Right held by him or her, to the extent of the number of
shares with respect to which he or she could have exercised it on the date of termination until the Stock Right’s specified expiration date; provided, however, in the event the grantee exercises any ISO after the date that is
three months following the date of termination of employment, such ISO will automatically be converted into an NSO subject to the terms of the Plan. Employment shall be considered as continuing uninterrupted during any bona fide leave of absence
(such as those attributable to illness, military obligations or governmental service) provided that the period of such leave does not exceed 90 days or, if longer, any period during which such grantee’s right to reemployment with the Company is
guaranteed by statute or by contract. A bona fide leave of absence with the written approval of the Company shall not be considered an interruption of employment under the Plan, provided that such written approval contractually
obligates the Company or any Related Corporation to continue the employment of the grantee after the approved period of absence; and provided that the foregoing approval requirement shall not apply to a leave of absence guaranteed by
statute or contract. ISOs granted under the Plan shall not be affected by any change of employment within or among the Company and Related Corporations, so long as the optionee continues to be an employee of the Company or any Related Corporation.

 For purposes of this Plan, a change in status from employee to a consultant, or from a consultant to employee, will not
constitute a termination of employment, provided that a change in status from an employee to consultant may cause an ISO to become an NSO under the Code. 
 NOTHING IN THE PLAN SHALL BE DEEMED TO GIVE ANY GRANTEE OF ANY STOCK RIGHT THE RIGHT TO BE RETAINED IN EMPLOYMENT OR OTHER SERVICE BY THE COMPANY OR ANY RELATED CORPORATION FOR ANY PERIOD OF TIME OR TO
AFFECT THE AT-WILL NATURE OF ANY EMPLOYEE’S EMPLOYMENT. 
 10. Death; Disability. 

(a) If a grantee ceases to be employed by the Company and all Related Corporations by reason of death, or if a grantee dies within three
months of the date his or her employment or other affiliation with the Company has been terminated, any Stock Right held by him or her may be exercised to the extent of the number of shares with respect to which he or she could have exercised said
Stock Right on the date of death, by his or her estate, personal representative or beneficiary who has acquired the Stock Right by will or by the laws of descent and distribution (the “Successor Grantee”), unless otherwise
specified in the instrument granting such Stock Right, prior to the earlier of (i) one year after the date of termination or (ii) the Stock Right’s specified expiration date; provided, however, that a Successor Grantee
shall be entitled 

  
 7 

 
to ISO treatment under Section 421 of the Code only if the deceased optionee would have been entitled to like treatment had he or she exercised such Option on the date of his or her death;
and provided further in the event the Successor Grantee exercises an ISO after the date that is one year following the date of termination by reason of death, such ISO will automatically be converted into a NSO subject to the terms of
the Plan. 
 (b) If a grantee ceases to be employed by the Company and all Related Corporations by reason of disability, he or
she shall continue to have the right to exercise any Stock Right held by him or her on the date of termination until, unless otherwise specified in the instrument granting such Stock Right, the earlier of (i) one year after the date of
termination or (ii) the Stock Right’s specified expiration date; provided, however, in the event the grantee exercises an ISO after the date that is one year following the date of termination by reason of disability, such ISO
will automatically be converted into a NSO subject to the terms of the Plan. For the purposes of the Plan, the term “disability” shall mean “permanent and total disability” as defined in Section 22(e)(3) of the Code.

 (c) The provisions of subsections (a) and (b) of this Section 10 regarding the exercise period of a Stock
Right may be waived, extended or further limited, in the discretion of the Board or Committee, in an instrument granting a Stock Right that is not an ISO. 
 11. Transferability and Assignability of Stock Rights. 
 (a) Unless
approved by the Committee, no ISO granted under this Plan shall be assignable or otherwise transferable by the optionee except by will or by the laws of descent and distribution. An ISO may be exercised during the lifetime of the optionee only by
the optionee. 
 (b) Unless approved by the Committee, no NSO, Purchase Right or SAR may be transferable by the grantee except
(i) to the grantee’s family members or (ii) by will or by the laws of descent and distribution or pursuant to a qualified domestic relations order as defined in the Code or Title I of the Employee Retirement Income Security Act, or
the rules thereunder. For purposes of the Plan, a grantee’s “family members” shall be deemed to consist of his or her spouse, parents, children, grandparents, grandchildren and any trusts created for the benefit of such individuals. A
family member to whom any such Stock Right has been transferred pursuant to this Section 11(b) shall be hereinafter referred to as a “Permitted Transferee”. A Stock Right shall be transferred to a Permitted Transferee in
accordance with the foregoing provisions, and subject to all the provisions of the Stock Right Agreement and this Plan, by the execution by the grantee and the transferee of an assignment in writing in such form approved by the Board or the
Committee. The Company shall not be required to recognize the rights of a Permitted Transferee until such time as it receives a copy of the assignment from the grantee. 
 12. Terms and Conditions of Stock Rights. Stock Rights shall be evidenced by instruments (which need not be identical) in such forms as the Board or Committee may from time to time approve. Such
instruments shall conform to the terms and conditions set forth in Sections 6 through 11 and Section 15 hereof and may contain such other provisions as the Board or Committee deems advisable that are not inconsistent with the Plan, including
restrictions (or 

  
 8 

 
other conditions deemed by the Board or Committee to be in the best interests of the Company) applicable to the exercise of Options or to shares of Common Stock issuable upon exercise of Options.
In granting any NSO, the Board or Committee may specify that such NSO shall be subject to the restrictions set forth herein with respect to ISOs, or to such other termination and cancellation provisions as the Board or Committee may determine. The
Board or Committee may from time to time confer authority and responsibility on one or more of its own members and/or one or more officers of the Company to execute and deliver such instruments. The proper officers of the Company are authorized and
directed to take any and all action necessary or advisable from time to time to carry out the terms of such instruments. 
 13.
Adjustments. Upon the occurrence of any of the following events, the rights of a recipient of a Stock Right granted hereunder shall be adjusted as hereinafter provided, unless otherwise provided in the written agreement between the recipient
and the Company relating to such Stock Right. 
 (a) If the shares of Common Stock shall be subdivided or combined into a
greater or smaller number of shares or if the Company shall issue shares of Common Stock as a stock dividend on its outstanding Common Stock, the number of shares of Common Stock deliverable upon the exercise of outstanding Stock Rights shall be
appropriately increased or decreased proportionately, and appropriate adjustments shall be made in the purchase price (if any) per share to reflect such subdivision, combination or stock dividend. 

(b) If the Company is to be consolidated with or acquired by another entity in a merger, sale of all or substantially all of the
Company’s assets or otherwise (an “Acquisition”), unless otherwise provided by the Board or Committee, in its sole discretion, the Board or Committee or the board of directors of any entity assuming the obligations of
the Company hereunder (the “Successor Board”) shall, as to outstanding Stock Rights, make appropriate provision for the continuation of such Stock Rights by either assumption of such Stock Rights or by substitution of such
Stock Rights with an equivalent award. For Stock Rights that are so assumed or substituted, in the event of a termination of grantee’s employment or consulting relationship by the Company or its successor other than For Cause (as defined below)
or by grantee for Good Reason (as defined below) within 60 days prior to and 180 days after an Acquisition, all Stock Rights held by such grantee shall become vested and immediately and fully exercisable and all forfeiture restrictions shall be
waived. If the Board, the Committee, or the Successor Board does not make appropriate provisions for the continuation of such Stock Rights by either assumption or substitution, unless otherwise provided by the Board or Committee in its sole
discretion, Stock Rights shall become vested and fully and immediately exercisable and all forfeiture restrictions shall be waived and all Stock Rights not exercised at the time of the closing of such Acquisition shall terminate notwithstanding
anything to the contrary in Section 9 hereof. 
 For purposes of this Plan, “For Cause” shall mean
the termination of a grantee’s status as an employee, a director or consultant (as applicable) for any of the following reasons, as determined by the Committee in its sole discretion; provided, that, with respect to an employee that is party to
an agreement with the Company where a termination for cause is defined in such agreement, the definition in such agreement shall govern the determination under this Section 13: 

  
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(i) a grantee who is a consultant and who commits a material breach of any consulting, noncompetition, confidentiality or similar agreement with the Company or a subsidiary, as determined under
such agreement; (ii) a grantee who is an employee or a consultant and who is convicted (including a trial, plea of guilty or plea of nolo contendere) for committing an act of fraud, embezzlement, theft, or other act constituting a felony;
(iii) a grantee who is an employee or a consultant and who willfully engages in gross misconduct or willfully violates a Company or a subsidiary policy in any material respect; or (iv) a grantee who is a Company employee and who commits a
material breach of any noncompetition, confidentiality or similar agreement with the Company or a subsidiary, as determined under such agreement. 
 For purposes of this Plan, a termination for “Good Reason” shall mean the resignation of an employee within 30 days after the following actions: (i) without the express
written consent of employee, the Company assigns duties which are materially inconsistent with employee’s position, duties and status; (ii) any action by the Company which results in a material diminution in the position, duties or status
of employee or any transfer or proposed transfer of employee for any extended period to a location more than 35 miles away from such employees’ principal place of employment, except for a transfer or proposed transfer for strategic
reallocations of the personnel reporting to employee; or (iii) the Company reduces the base annual salary of employee, as the same may hereafter be increased from time to time. 

(c) In the event of a transaction, including without limitation, a recapitalization or reorganization of the Company (other than a
transaction described in subsection (b) above) pursuant to which securities of the Company or of another corporation are issued with respect to the outstanding shares of Common Stock, an optionee or grantee upon exercising an a Stock Right
shall be entitled to receive for the purchase price paid upon such exercise the securities he or she would have received if he or she had exercised the Stock Right immediately prior to such recapitalization or reorganization. 

(d) In the event of the proposed dissolution or liquidation of the Company, each Stock Right will terminate immediately prior to the
consummation of such proposed action or at such other time and subject to such other conditions as shall be determined by the Board or Committee. 
 (e) Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason
thereof shall be made with respect to, the number or price of shares subject to Stock Right. No adjustments shall be made for dividends paid in cash or in property other than Common Stock of the Company. 

(f) No fractional shares shall be issued under the Plan and any optionee who would otherwise be entitled to receive a fraction of a share
upon exercise of a Stock Right shall receive from the Company cash in lieu of such fractional shares in an amount equal to the Fair Market Value of such fractional shares, as determined in the sole discretion of the Board or Committee. 

  
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 (g) Upon the happening of any of the foregoing events described in subsections (a),
(b) or (c) above, the class and aggregate number of shares set forth in Section 4 hereof that are subject to Stock Rights that previously have been or subsequently may be granted under the Plan shall also be appropriately adjusted to
reflect the events described. The Board or Committee or the Successor Board shall determine the specific adjustments to be made under this Section 13 and, subject to Section 2, its determination shall be conclusive. 

14. Means of Exercising Stock Rights. 
 (a) Except as otherwise provided in this Plan or the instrument evidencing the Stock Right, a Stock Right (or any part or installment thereof) shall be exercised by giving written notice to the Company at
its principal office address to the attention of its President. Such notice shall identify the Stock Right being exercised and specify the number of shares as to which such Stock Right is being exercised, accompanied by full payment of the exercise
price therefor, if any, payable as follows (a) in United States dollars in cash or by check, (b) at the discretion of the Board or Committee, by delivery of the grantee’s personal recourse note bearing interest payable not less than
annually at a market rate that is no less than 100% of the lowest applicable Federal rate, as defined in Section 1274(d) of the Code, (c) at the discretion of the Board or Committee, through the surrender of shares of Common Stock then
issuable upon exercise of the Stock Right having a Fair Market Value on the date of exercise equal to the aggregate exercise price of the Stock Right and/or any related withholding tax obligations, (d) at the discretion of the Board or the
Committee, through the delivery of already-owned shares of Common Stock having a Fair Market Value on the date of exercise equal to the aggregate exercise price of the Stock Right and/or any related withholding tax obligations, (e) at the
discretion of the Board or Committee, delivery of a notice that the grantee has placed a market sell order with a broker with respect to shares of Common Stock then issuable upon exercise of the Stock Right and that the broker has been directed to
pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction of the Stock Right exercise price, provided that payment of such proceeds is then made to the Company upon settlement of the sale, or (f) at the discretion
of the Board or Committee, by any combination of (a), (b, (c), (d) or (e), or such other consideration and method of payment for the issuance of shares to the extent permitted by applicable law or the Plan. If the Board or Committee exercises
its discretion to permit payment of the exercise price of an ISO by means of the methods set forth in clauses (b), (c), (d), (e) or (f) of the preceding sentence, the term of exercise shall be evidenced by the terms set forth in the
written agreement evidencing the grant of the Stock Right. The shares of Common Stock delivered by a grantee pursuant to clause (d) above must have been held by grantee for a period of not less than one year prior to the exercise of the Stock
Right, unless otherwise determined by the Board or the Committee. The holder of a Stock Right shall not have the rights of a stockholder with respect to the shares covered by the Stock Right until the date of issuance of a stock certificate for such
shares. Except as expressly provided above in Section 13 with respect to changes in capitalization and stock dividends, no adjustment shall be made for dividends or similar rights for which the record date is before the date such stock
certificate is issued. 
 (b) The Company shall not be required to issue or deliver any certificate for shares of Common Stock
issued upon the exercise of any Stock Right granted hereunder or any portion thereof, prior to fulfillment of all of the following conditions: 

  
 11 

 (i) the admission of such shares to listing on all stock exchanges on which the Common
Stock is listed, if any; 
 (ii) the completion of any registration or other qualification of such shares which the Board or
Committee shall deem necessary or advisable under any federal or state law or under the rulings or regulations of the United States Securities and Exchange Commission (the “SEC”) or any other governmental regulatory body, or
the determination by the Company, with the advice of legal counsel, that exemptions are available from such registration and qualification; 
 (iii) the obtaining of any approval or other clearance from any federal or state governmental agency or body which the Board or Committee shall determine to be necessary or advisable; and 

(iv) the lapse of such reasonable period of time following the exercise of the Option as the Board or Committee from time to time may
establish for reasons of administrative convenience. 
 Stock certificates issued and delivered to grantees shall bear such
restrictive legends as the Company shall deem necessary or advisable pursuant to applicable federal and state securities laws. The inability of the Company to obtain approval from any regulatory body having authority deemed by the Company to be
necessary to the lawful issuance and sale of any Common Stock pursuant to Stock Rights shall relieve the Company of any liability whit respect to the non-issuance or sale of the Common Stock as to which such approval shall not have been obtained.
The Company shall, however, use its commercially reasonable efforts to obtain all such approvals. 
 15. Stock Appreciation
Rights. An SAR may be granted (a) with respect to any Option granted under this Plan, either concurrently with the grant of such Option or at such later time as determined by the Committee (as to all or any portion of the shares of Common
Stock subject to the Option), or (b) alone, without reference to any related Option. Each SAR granted by the Committee under this Plan shall be subject to the following terms and conditions. Each SAR granted to any participant shall relate to
such number of shares of Common Stock as shall be determined by the Committee, subject to adjustment as provided in Section 13. In the case of an SAR granted with respect to an Option, the number of shares of Common Stock to which the SAR
pertains shall be reduced in the same proportion that the holder of the Option exercises the related Option. The exercise price of an SAR will be determined by the Committee, in its discretion, at the date of grant but may not be less than 100% of
the Fair Market Value of the shares of Common Stock subject thereto on the date of grant. Subject to the right of the Committee to deliver cash in lieu of shares of Common Stock (which, as it pertains to officers and directors of the Company, shall
comply with all requirements of the Exchange Act), the number of shares of Common Stock which shall be issuable upon the exercise of an SAR shall be determined by dividing: 

  
 12 

 (a) the number of shares of Common Stock as to which the SAR is exercised multiplied by the
amount of the appreciation in such shares (for this purpose, the “appreciation” shall be the amount by which the Fair Market Value of the shares of Common Stock subject to the SAR on the exercise date exceeds (1) in the case of an SAR
related to an Option, the exercise price of the shares of Common Stock under the Option or (2) in the case of an SAR granted alone, without reference to a related Option, an amount which shall be determined by the Committee at the time of
grant, subject to adjustment under Section 13); by 
 (b) the Fair Market Value of a share of Common Stock on the exercise
date. 
 In lieu of issuing shares of Common Stock upon the exercise of a SAR, the Committee may elect to pay the holder of the SAR cash equal
to the Fair Market Value on the exercise date of any or all of the shares which would otherwise be issuable. No fractional shares of Common Stock shall be issued upon the exercise of an SAR; instead, the holder of the SAR shall be entitled to
receive a cash adjustment equal to the same fraction of the Fair Market Value of a share of Common Stock on the exercise date or to purchase the portion necessary to make a whole share at its Fair Market Value on the date of exercise. The exercise
of an SAR related to an Option shall be permitted only to the extent that the Option is exercisable under Section 8 on the date of surrender. Any ISO surrendered pursuant to the provisions of this Section 15 shall be deemed to have been
converted into a NSO immediately prior to such surrender. 
 16. Term and Amendment of Plan. This Plan was adopted by the
Board in December 2011 (the “Effective Date”), subject (with respect to the validation of ISOs granted under the Plan) to approval of the Plan by the stockholders of the Company. The Plan will be approved by the stockholders
of the Company within one year of the Effective Date. The Plan shall expire 10 years after the Effective Date (except as to Stock Rights outstanding on that date). Subject to the provisions of Section 5 above, Stock Rights may be granted under
the Plan prior to the date of stockholder approval of the Plan. The Board may terminate or amend the Plan in any respect at any time, subject to any approvals required under Applicable Laws or any securities exchange listing requirements; except
that without the approval of the stockholders obtained within 12 months before or after the Board adopts a resolution authorizing any of the following actions: 
 (a) the total number of shares that may be issued under the Plan may not be increased (except by adjustment pursuant to Section 13); 

(b) the provisions of Section 3 regarding eligibility for grants of ISOs may not be modified; 

(c) the provisions of Section 6(b) regarding the exercise price at which shares may be offered pursuant to ISOs may not be modified
(except by adjustment pursuant to Section 13); and 
 (d) the expiration date of the Plan may not be extended. 

  
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 Except as provided in Section 13(b) and the fifth sentence of this Section 16, in
no event may action of the Board or stockholders adversely alter or impair the rights of a grantee, without his or her consent, under any Stock Right previously granted. 
 17. Conversion of ISOs into NSOs; Termination of ISOs. The Board or Committee, with the consent of any optionee, may in its discretion take such actions as may be necessary to convert an
optionee’s ISOs (or any installments or portions of installments thereof) that have not been exercised on the date of conversion into NSOs at any time prior to the expiration of such ISOs. These actions may include, but not be limited to,
accelerating the exercisability, extending the exercise period or reducing the exercise price of the appropriate installments of optionee’s Options. At the time of such conversion, the Board or Committee (with the consent of the optionee) may
impose these conditions on the exercise of the resulting NSOs as the Board or Committee in its discretion may determine, provided that the conditions shall not be inconsistent with the Plan. Nothing in the Plan shall be deemed to give any optionee
the right to have such optionee’s ISOs converted into NSOs, and no conversion shall occur until and unless the Board or Committee takes appropriate action. The Board or Committee, with the consent of the optionee, may also terminate any portion
of any ISO that has not been exercised at the time of termination. 
 18. Governmental Regulation. The Company’s
obligation to sell and deliver shares of the Common Stock under the Plan is subject to the approval of any governmental authority required in connection with the authorization, issuance or sale of such shares. 

19. Withholding of Additional Income Taxes. 
 (a) Upon the exercise of an NSO or SAR, the grant of a Stock Bonus or Purchase Right for less than the Fair Market Value of the Common Stock, the making of a Disqualifying Disposition (as defined in
Section 20), or the vesting of restricted Common Stock acquired on the exercise of a Stock Right hereunder, the Company, in accordance with Section 3402(a) of the Code and any applicable state statute or regulation, may require the
optionee, Stock Bonus or SAR recipient or purchaser to pay to the Company additional withholding taxes in respect of the amount that is considered compensation includable in such person’s gross income. With respect to (a) the exercise of
an Option, (b) the grant of a Stock Bonus, (c) the grant of a Purchase Right of Common Stock for less than its Fair Market Value, (d) the vesting of restricted Common Stock acquired by exercising a Stock Right, or (e) the
exercise of an SAR, the Committee in its discretion may condition such event on the payment by the optionee, Stock Bonus recipient or purchaser of any such additional withholding taxes. 

(b) At the sole and absolute discretion of the Committee, the holder of Stock Rights may pay all or any part of the total estimated
federal and state income tax liability arising out of the exercise or receipt of such Stock Rights, the making of a Disqualifying Disposition, or the vesting of restricted Common Stock acquired on the exercise of a Stock Right hereunder (each of the
foregoing, a “Tax Event”) by tendering already-owned shares of Common Stock or (except in the case of a Disqualifying Disposition) by directing the Company to withhold shares of Common Stock otherwise to be transferred to the
holder of such Stock Rights as a result of the exercise or receipt thereof in an amount equal to the estimated federal and state income tax 

  
 14 

 
liability arising out of such event, provided that no more shares may be withheld than are necessary to satisfy the holder’s actual minimum withholding obligation with respect to the
exercise of Stock Rights. In such event, the holder of Stock Rights must, however, notify the Committee of his or her desire to pay all or any part of the total estimated federal and state income tax liability arising out of a Tax Event by tendering
already-owned shares of Common Stock or having shares of Common Stock withheld prior to the date that the amount of federal or state income tax to be withheld is to be determined. For purposes of this Section 19(b), shares of Common Stock shall
be valued at their Fair Market Value on the date that the amount of the tax withholdings is to be determined. 
 20. Notice
to Company of Disqualifying Disposition. Each employee who receives an ISO must agree to notify the Company in writing immediately after the employee makes a Disqualifying Disposition (as defined below) of any Common Stock acquired pursuant to
the exercise of an ISO. A “Disqualifying Disposition” is any disposition (including any sale) of such Common Stock before either (a) two years after the date the employee was granted the ISO, or (b) one year after
the date the employee acquired Common Stock by exercising the ISO. If the employee has died before such stock is sold, these holding period requirements do not apply and no Disqualifying Disposition can occur thereafter. 

21. Electronic Delivery. The Board may, in its sole discretion, decide to deliver any documents related to any Stock Rights
granted under the Plan through an online or electronic system established and maintained by the Company or another third party designated by the Company or to request a recipient’s consent to participate in the Plan by electronic means. Each
recipient of securities hereunder consents to receive such documents by electronic delivery and agrees to participate in the Plan through an online or electronic system established and maintained by the Company or another third party designated by
the Company, and such consent shall remain in effect throughout recipient’s term of employment or service with the Company and thereafter until withdrawn in writing by recipient. 

22. Data Privacy. The Board may, in its sole discretion, decide to collect, use and transfer, in electronic or other form,
personal data as described in this Plan or any Stock Right for the exclusive purpose of implementing, administering and managing participation in the Plan. Each recipient of securities hereunder acknowledges that the Company holds certain personal
information about the recipient, including, but not limited to, name, home address and telephone number, date of birth, social security number or other identification number, salary, nationality, job title, details of all Stock Rights awarded,
cancelled, exercised, vested or unvested, for the purpose of implementing, administering and managing the Plan (the “Data”). Each recipient of securities hereunder further acknowledges that Data may be transferred to any
third parties assisting in the implementation, administration and management of the Plan and that these third parties may be located in jurisdictions that may have different data privacy laws and protections, and recipient authorizes such third
parties to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing the Plan, including any requisite transfer of such Data as may be required to a broker or other
third party with whom the recipient or the Company may elect to deposit any shares of Common Stock acquired upon any Stock Right. 

  
 15 

 23. Governing Law; Construction. The validity and construction of the Plan and the
instruments evidencing Stock Rights shall be governed by the laws of the State of South Carolina. In construing this Plan, the singular shall include the plural and the masculine gender shall include the feminine and neuter, unless the context
otherwise requires. 
 24. Lock-up Agreement. Each recipient of securities hereunder agrees, in connection with the first
registration with the United States Securities and Exchange Commission under the Securities Act of 1933, as amended, of the public sale of the Company’s Common Stock, not to sell, make any short sale of, loan, grant any option for the purchase
of or otherwise dispose of any securities of the Company (other than those included in the registration) without the prior written consent of the Company or such underwriters, as the case may be, for such period of time (not to exceed 180 days) from
the effective date of such registration as the Company or the underwriters, as the case may be, shall specify. Each such recipient agrees that the Company may instruct its transfer agent to place stop-transfer notations in its records to enforce
this Section 22. Each such recipient agrees to execute a form of agreement reflecting the foregoing restrictions as requested by the underwriters managing such offering. 

  
 16

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