Document:

Power Solutions International, Inc. 2012 Incentive Compensation Plan

 Exhibit 10.3 
 FINAL VERSION 
 Power Solutions International, Inc. 

2012 Incentive Compensation Plan 

 Table of Contents 

 

									
	  	 	  	 	 	  	Page	 
	Section 1. Establishment, Purpose and Duration	  	 	1	  
		 	1.1.	 	 Effective Date and Purpose
	  	 	1	  
		 	1.2.	 	 Duration of the Plan
	  	 	1	  
		
	Section 2. Definitions	  	 	1	  
		 	2.1.	 	 “Acquired Entity”
	  	 	1	  
		 	2.2.	 	 “Acquired Entity Awards”
	  	 	1	  
		 	2.3.	 	 “Annual Incentive Award”
	  	 	1	  
		 	2.4.	 	 “Available Shares”
	  	 	1	  
		 	2.5.	 	 “Award”
	  	 	1	  
		 	2.6.	 	 “Award Agreement”
	  	 	1	  
		 	2.7.	 	 “Beneficiary”
	  	 	2	  
		 	2.8.	 	 “Board”
	  	 	2	  
		 	2.9.	 	 “Bonus Opportunity”
	  	 	2	  
		 	2.10.	 	 “Cause”
	  	 	2	  
		 	2.11.	 	 “Change in Control”
	  	 	2	  
		 	2.12.	 	 “Change in Control Price”
	  	 	3	  
		 	2.13.	 	 “Code”
	  	 	3	  
		 	2.14.	 	 “Committee”
	  	 	3	  
		 	2.15.	 	 “Common Stock”
	  	 	3	  
		 	2.16.	 	 “Company”
	  	 	3	  
		 	2.17.	 	 “Covered Employee”
	  	 	3	  
		 	2.18.	 	 “Current Grant”
	  	 	3	  
		 	2.19.	 	 “Deferral Account”
	  	 	3	  
		 	2.20.	 	 “Deferral Election”
	  	 	3	  
		 	2.21.	 	 “Deferred Compensation Award”
	  	 	3	  
		 	2.22.	 	 “Deferred Stock”
	  	 	3	  
		 	2.23.	 	 “Disability”
	  	 	3	  
		 	2.24.	 	 “Disqualifying Disposition”
	  	 	4	  
		 	2.25.	 	 “Dividend Equivalent”
	  	 	4	  
		 	2.26.	 	 “Effective Date”
	  	 	4	  
		 	2.27.	 	 “Eligible Person”
	  	 	4	  
		 	2.28.	 	 “Employer”
	  	 	4	  
		 	2.29.	 	 “Employment Agreement”
	  	 	4	  
		 	2.30.	 	 “Exchange Act”
	  	 	4	  
		 	2.31.	 	 “Exercise Date”
	  	 	4	  
		 	2.32.	 	 “Fair Market Value”
	  	 	4	  
		 	2.33.	 	 “FICA”
	  	 	5	  
		 	2.34.	 	 “Grant Date”
	  	 	5	  
		 	2.35.	 	 “Grantee”
	  	 	5	  
		 	2.36.	 	 “Immediate Family”
	  	 	5	  
		 	2.37.	 	 “Incentive Stock Option”
	  	 	5	  
		 	2.38.	 	 “including”
	  	 	5	  

  
 i 

									
		 	2.39.	 	 “Non-Qualified Stock Option”
	  	 	5	  
		 	2.40.	 	 “Notice”
	  	 	5	  
		 	2.41.	 	 “100,000 Limit”
	  	 	5	  
		 	2.42.	 	 “Option”
	  	 	5	  
		 	2.43.	 	 “Option Price”
	  	 	5	  
		 	2.44.	 	 “Other Plans”
	  	 	5	  
		 	2.45.	 	 “Performance-Based Exception”
	  	 	5	  
		 	2.46.	 	 “Performance Goal”
	  	 	5	  
		 	2.47.	 	 “Performance Measures”
	  	 	6	  
		 	2.48.	 	 “Performance Period”
	  	 	6	  
		 	2.49.	 	 “Performance Unit”
	  	 	6	  
		 	2.50.	 	 “Permitted Transferee”
	  	 	6	  
		 	2.51.	 	 “Person”
	  	 	6	  
		 	2.52.	 	 “Plan”
	  	 	6	  
		 	2.53.	 	 “Prior Grants”
	  	 	6	  
		 	2.54.	 	 “Restricted Stock”
	  	 	6	  
		 	2.55.	 	 “Restricted Stock Unit” or “RSU”
	  	 	6	  
		 	2.56.	 	 “Restrictions”
	  	 	6	  
		 	2.57.	 	 “RSU Account”
	  	 	6	  
		 	2.58.	 	 “Rule 16b-3”
	  	 	6	  
		 	2.59.	 	 “SEC”
	  	 	7	  
		 	2.60.	 	 “Section 16 Non-Employee Director”
	  	 	7	  
		 	2.61.	 	 “Section 16 Person”
	  	 	7	  
		 	2.62.	 	 “Settlement Date”
	  	 	7	  
		 	2.63.	 	 “Share”
	  	 	7	  
		 	2.64.	 	 “Stock Appreciation Right” or “SAR”
	  	 	7	  
		 	2.65.	 	 “Strike Price”
	  	 	7	  
		 	2.66.	 	 “Subsidiary”
	  	 	7	  
		 	2.67.	 	 “Subsidiary Corporation”
	  	 	7	  
		 	2.68.	 	 “Substitute Award”
	  	 	7	  
		 	2.69.	 	 “Tax Date”
	  	 	7	  
		 	2.70.	 	 “Tendered Restricted Shares”
	  	 	7	  
		 	2.71.	 	 “Term”
	  	 	7	  
		 	2.72.	 	 “Termination of Service”
	  	 	7	  
		 	2.73.	 	 “Total Payments”
	  	 	8	  
		 	2.74.	 	 “Year”
	  	 	8	  
		
	Section 3. Administration	  	 	8	  
		 	3.1.	 	 Committee
	  	 	8	  
		 	3.2.	 	 Powers of the Committee
	  	 	8	  
		
	Section 4. Shares Subject to the Plan and Adjustments	  	 	11	  
		 	4.1.	 	 Number of Shares Available for Grants
	  	 	11	  
		 	4.2.	 	 Adjustments in Authorized Shares and Awards
	  	 	11	  
		 	4.3.	 	 Compliance With Code Section 162(m)
	  	 	12	  
		 	4.4.	 	 Performance Based Exception Under Code Section 162(m)
	  	 	12	  

  
 ii 

									
	Section 5. Eligibility and General Conditions of Awards	  	 	14	  
		 	5.1.	 	 Eligibility
	  	 	14	  
		 	5.2.	 	 Award Agreement
	  	 	14	  
		 	5.3.	 	 General Terms and Termination of Service
	  	 	14	  
		 	5.4.	 	 Non-transferability of Awards
	  	 	16	  
		 	5.5.	 	 Cancellation and Rescission of Awards
	  	 	17	  
		 	5.6.	 	 Substitute Awards
	  	 	17	  
		 	5.7.	 	 Exercise by Non-Grantee
	  	 	17	  
		 	5.8.	 	 No Cash Consideration for Awards
	  	 	17	  
		
	Section 6. Stock Options	  	 	17	  
		 	6.1.	 	 Grant of Options
	  	 	17	  
		 	6.2.	 	 Award Agreement
	  	 	18	  
		 	6.3.	 	 Option Price
	  	 	18	  
		 	6.4.	 	 Vesting
	  	 	18	  
		 	6.5.	 	 Grant of Incentive Stock Options
	  	 	18	  
		 	6.6.	 	 Exercise and Payment
	  	 	20	  
		
	Section 7. Stock Appreciation Rights	  	 	21	  
		 	7.1.	 	 Grant of SARs
	  	 	21	  
		 	7.2.	 	 Award Agreements
	  	 	21	  
		 	7.3.	 	 Strike Price
	  	 	21	  
		 	7.4.	 	 Vesting
	  	 	21	  
		 	7.5.	 	 Exercise and Payment
	  	 	21	  
		 	7.6.	 	 Grant Limitations
	  	 	22	  
		
	Section 8. Restricted Stock	  	 	22	  
		 	8.1.	 	 Grant of Restricted Stock
	  	 	22	  
		 	8.2.	 	 Award Agreement
	  	 	22	  
		 	8.3.	 	 Consideration for Restricted Stock
	  	 	22	  
		 	8.4.	 	 Vesting
	  	 	22	  
		 	8.5.	 	 Effect of Forfeiture
	  	 	23	  
		 	8.6.	 	 Escrow; Legends
	  	 	23	  
		 	8.7.	 	 Stockholder Rights in Restricted Stock
	  	 	23	  
		
	Section 9. Restricted Stock Units	  	 	23	  
		 	9.1.	 	 Grant of Restricted Stock Units
	  	 	23	  
		 	9.2.	 	 Award Agreement
	  	 	23	  
		 	9.3.	 	 Crediting Restricted Stock Units
	  	 	24	  
		
	Section 10. Deferred Stock	  	 	24	  
		 	10.1.	 	 Grant of Deferred Stock
	  	 	24	  
		 	10.2.	 	 Award Agreement
	  	 	24	  
		 	10.3.	 	 Deferred Stock Elections
	  	 	25	  
		 	10.4.	 	 Deferral Account
	  	 	25	  
		
	Section 11. Performance Units	  	 	26	  
		 	11.1.	 	 Grant of Performance Units
	  	 	26	  
		 	11.2.	 	 Value/Performance Goals
	  	 	26	  
		 	11.3.	 	 Earning of Performance Units
	  	 	27	  
		 	11.4.	 	 Adjustment on Change of Position
	  	 	27	  

  
 iii

									
		
	Section 12. Annual Incentive Awards	  	 	27	  
		 	12.1.	 	 Annual Incentive Awards
	  	 	27	  
		 	12.2.	 	 Determination of Amount of Annual Incentive Awards
	  	 	27	  
		 	12.3.	 	 Time of Payment of Annual Incentive Awards
	  	 	28	  
		 	12.4.	 	 Form of Payment of Annual Incentive Awards
	  	 	28	  
		
	Section 13. Dividend Equivalents	  	 	29	  
		
	Section 14. Change in Control	  	 	29	  
		 	14.1.	 	 Acceleration of Vesting
	  	 	29	  
		 	14.2.	 	 Special Treatment in the Event of a Change in Control
	  	 	29	  
		
	Section 15. Amendments and Termination	  	 	30	  
		 	15.1.	 	 Amendment and Termination
	  	 	30	  
		 	15.2.	 	 Previously Granted Awards
	  	 	30	  
		
	Section 16. Beneficiary Designation	  	 	30	  
		
	Section 17. Withholding	  	 	30	  
		 	17.1.	 	 Required Withholding
	  	 	30	  
		 	17.2.	 	 Notification under Code Section 83(b)
	  	 	31	  
		
	Section 18. General Provisions	  	 	31	  
		 	18.1.	 	 Governing Law
	  	 	31	  
		 	18.2.	 	 Severability
	  	 	32	  
		 	18.3.	 	 Successors
	  	 	32	  
		 	18.4.	 	 Requirements of Law
	  	 	32	  
		 	18.5.	 	 Securities Law Compliance
	  	 	32	  
		 	18.6.	 	 Code Section 409A
	  	 	33	  
		 	18.7.	 	 Mitigation of Excise Tax
	  	 	33	  
		 	18.8.	 	 No Rights as a Stockholder
	  	 	34	  
		 	18.9.	 	 Awards Not Taken into Account for Other Benefits
	  	 	34	  
		 	18.10.	 	 Employment Agreement Supersedes Award Agreement
	  	 	34	  
		 	18.11.	 	 Non-Exclusivity of Plan
	  	 	34	  
		 	18.12.	 	 No Trust or Fund Created
	  	 	34	  
		 	18.13.	 	 No Right to Continued Employment or Awards
	  	 	34	  
		 	18.14.	 	 Military Service
	  	 	35	  
		 	18.15.	 	 Construction
	  	 	35	  
		 	18.16.	 	 No Fractional Shares
	  	 	35	  
		 	18.17.	 	 Plan Document Controls
	  	 	35	  

  
 iv 

 Power Solutions International, Inc. 

2012 Incentive Compensation Plan 
 Section 1. 
 Establishment, Purpose and Duration 

1.1. Effective Date and Purpose. Power Solutions International, Inc., a Delaware corporation (the “Company”),
hereby establishes the Power Solutions International, Inc. 2012 Incentive Compensation Plan (the “Plan”). The Plan is intended to assist the Company in attracting and retaining exceptionally qualified employees, consultants and
directors upon whom, in large measure, the sustained progress, growth and profitability of the Company depend. The Plan was approved by the Company’s Board of Directors (the “Board”) on May 30, 2012 (the “Effective
Date”) and is effective as of the Effective Date, subject to approval by the Company’s stockholders. Unless and until approved by the Company stockholders, no shares of Common Stock shall be issued, nor shall any cash payments be made,
under the Plan. 
 1.2. Duration of the Plan. The Plan shall commence on the Effective Date and shall remain in effect,
subject to the right of the Committee to amend or terminate the Plan at any time pursuant to Section 15 hereof, until the earlier to occur of (a) the date all Shares subject to the Plan shall have been purchased or acquired and the
Restrictions on all Restricted Stock granted under the Plan shall have lapsed, according to the Plan’s provisions, and (b) ten (10) years from the Effective Date of the Plan. The termination of the Plan pursuant to this
Section 1.2 shall not adversely affect any Awards outstanding on the date of such termination. 
 Section 2.

 Definitions 
 As used in the Plan, in addition to terms elsewhere defined in the Plan, the following terms shall have the meanings set forth below: 

2.1. “Acquired Entity” has the meaning set forth in Section 5.6. 

2.2. “Acquired Entity Awards” has the meaning set forth in Section 5.6. 

2.3. “Annual Incentive Award” means a performance bonus determined under Section 12. 

2.4. “Available Shares” has the meaning set forth in Section 4.1(a). 

2.5. “Award” means any Option (either a Non-Qualified Stock Option or an Incentive Stock Option), Stock Appreciation
Right, Restricted Stock, Restricted Stock Unit, Deferred Stock, Performance Unit, Substitute Award, Share, Dividend Equivalent or Annual Incentive Award. 
 2.6. “Award Agreement” means any written agreement, contract or other instrument or document evidencing any Award granted hereunder between the Company and a Grantee. 

 2.7. “Beneficiary” means the Person designated to receive Plan benefits, if
any, in accordance with Section 16 following a Grantee’s death. 
 2.8. “Board” means the Board of
Directors of the Company. 
 2.9. “Bonus Opportunity” means a Grantee’s threshold, target and maximum
bonus opportunity for a Year; provided that such bonus opportunity shall be either (a) to the extent that the Grantee has entered into an Employment Agreement with the Company, the threshold, target and maximum bonus levels, if any,
specified in such Employment Agreement for such Year based on the Grantee’s base salary in effect on the first day of such Year, or (b) if there is no Employment Agreement in effect between the Company and the Grantee as of the first day
of such Year or if the Employment Agreement does not specify such bonus levels, the percentage of such Grantee’s base salary in effect on the first day of such Year (or such later date as such person is designated as a Grantee) as determined by
the Committee in its sole discretion within the first ninety (90) days of such Year (or before such later date as such person is designated as a Grantee). 
 2.10. “Cause” means, as determined by the Committee, the occurrence of any one of the following: (a) commission of an act of fraud, embezzlement or other act of dishonesty that would
reflect adversely on the integrity, character or reputation of the Company, or that would cause harm to its customer relations, operations or business prospects; (b) breach of a fiduciary duty owed to the Company; (c) violation or
threatening to violate a restrictive covenant agreement, such as a non-compete, non-solicit, or non-disclosure agreement, between an Eligible Person and any Employer; (d) unauthorized disclosure or use of confidential information or trade
secrets; (e) violation of any lawful policies or rules of the Company, including any applicable code of conduct; (f) commission of criminal activity; (g) failure to reasonably cooperate in any investigation or proceeding concerning
the Company; or (h) neglect or misconduct in the performance of the Grantee’s duties and responsibilities, provided that such Grantee did not cure such neglect or misconduct within ten (10) days after the Company gave written
notice of such neglect or misconduct to such Grantee; provided, however, that in the event a Grantee is party to an Employment Agreement that contains a different definition of Cause, the definition of Cause contained in such
Employment Agreement shall be controlling. 
 2.11. “Change in Control” means the occurrence of any one or more
of the following: (a) any corporation, person or other entity (other than the Company, a majority-owned subsidiary of the Company or any of its subsidiaries, or an employee benefit plan (or related trust) sponsored or maintained by the
Company), including a “group” as provided in Section 13(d)(3) of the Exchange Act, becomes the beneficial owner of stock representing more than fifty percent (50%) of the combined voting power of the Company’s then
outstanding securities; (b) (i) consummation of the Company’s merger or consolidation with or into another corporation other than a majority-owned subsidiary of the Company, or the sale or other disposition of at least eighty-five
percent (85%) of the Company’s assets, and (ii) the persons who were the members of the Board prior to such consummation do not represent a majority of the directors of the surviving, resulting or acquiring entity or parent thereof;
(c) the consummation of a plan of liquidation; or (d) within any period of 12 consecutive months, persons who were members of the Board immediately prior to such 12-month period, together with persons who were first elected as directors
(other than as a result of any settlement of a proxy or consent solicitation 

  
 2 

 
contest or any action taken to avoid such a contest) during such 12-month period by or upon the recommendation of persons who were members of the Board immediately prior to such 12-month period
and who constituted a majority of the Board at the time of such election, cease to constitute a majority of the Board. Notwithstanding the foregoing, a Change in Control shall not occur with respect to a Deferred Compensation Award unless such
Change in Control constitutes a “change in control event” within the meaning of Treasury Regulation Section 1.409A-3(i)(5). 
 2.12. “Change in Control Price” has the meaning set forth in Section 14.2. 
 2.13. “Code” means the Internal Revenue Code of 1986 (and any successor thereto), as amended from time to time. References to a particular section of the Code include references to
regulations and rulings promulgated and in effect thereunder and to any successor provisions. 
 2.14.
“Committee” has the meaning set forth in Section 3.1(a). 
 2.15. “Common Stock” means
common stock, par value $.001 per share, of the Company. 
 2.16. “Company” has the meaning set forth in
Section 1.1. 
 2.17. “Covered Employee” means a Grantee who, as of the last day of the fiscal year in
which the value of an Award is includable in income for federal income tax purposes, is one of the group of “covered employees,” within the meaning of Code Section 162(m), with respect to the Company. 

2.18. “Current Grant” has the meaning set forth in Section 6.5(d). 

2.19. “Deferral Account” has the meaning set forth in Section 10.4(a). 

2.20. “Deferral Election” has the meaning set forth in Section 10.3(a). 

2.21. “Deferred Compensation Award” means an Award that is not exempt from Code Section 409A and, thus, could be
subject to adverse tax consequences under Code Section 409A. 
 2.22. “Deferred Stock” means a right,
granted as an Award under Section 10, to receive payment in the form of Shares (or measured by the value of Shares) at the end of a specified deferral period. 
 2.23. “Disability” means a mental or physical illness that entitles a Grantee to receive benefits under the long-term disability plan of an Employer, or if the Grantee is not covered by
such a plan or the Grantee is not an employee of an Employer, a mental or physical illness that renders the Grantee totally and permanently incapable of performing the Grantee’s duties for the Company or a Subsidiary; provided,
however, that the Grantee of a Deferred Compensation Award shall, for purposes thereof, not be considered to have a Disability unless such Disability also constitutes a “disability” within the meaning of Treasury Regulation
Section 1.409A-3(i)(4). Notwithstanding anything to the contrary in this Section 2.23, a Disability shall not qualify under the Plan if it is the result of (i) a willfully self-inflicted injury or willfully self-induced sickness; or
(ii) an injury or disease contracted, suffered or incurred while participating in a criminal offense. 

  
 3 

 2.24. “Disqualifying Disposition” has the meaning set forth in
Section 6.5(f). 
 2.25. “Dividend Equivalent” means any right to receive payments equal to dividends or
property, if and when paid or distributed, on Shares or Restricted Stock Units. 
 2.26. “Effective Date” has
the meaning set forth in Section 1.1. 
 2.27. “Eligible Person” means any (a) employee of an
Employer (including leased employees and co-employees with a professional employer organization), (b) non-employee director of the Company or (c) consultant engaged by an Employer. 

2.28. “Employer” means the Company or any Subsidiary. 

2.29. “Employment Agreement” means an employment agreement, offer letter, consulting agreement or other written
agreement between an Employer and an Eligible Person, which relates to the terms and conditions of such person’s employment or other services for an Employer. 
 2.30. “Exchange Act” means the Securities Exchange Act of 1934 (and any successor thereto), as amended from time to time. References to a particular section of the Exchange Act include
references to rules, regulations and rulings promulgated and in effect thereunder, and to any successors thereto. 
 2.31.
“Exercise Date” means the date the Grantee or other holder of an Award that is subject to exercise delivers notice of such exercise to the Company, accompanied by such payment, attestations, representations and warranties or other
documentation required under the Plan and applicable Award Agreement or as the Committee may otherwise specify. 
 2.32.
“Fair Market Value” means, unless otherwise provided in an Award Agreement, as of any applicable date, (a) the closing (last sale) price for one Share on such date as reported on the market system or securities exchange on
which the Company’s Common Stock is then listed or admitted to trading, or on the last previous day on which a sale was reported if no sale of a Share was reported on such date, or (b) if the foregoing subsection (a) does not apply,
the fair market value of a Share as reasonably determined in good faith by the Board in accordance with Code Section 409A. For purposes of subsection (b), the determination of such Fair Market Value by the Board will be made no less frequently
than every twelve (12) months and will either (x) use one of the safe harbor methodologies permitted under Treasury Regulation Section 1.409A-1(b)(5)(iv)(B)(2) (or such other similar regulation provision as may be provided) or
(y) 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 other equity interests in similar corporations and other entities
engaged in trades or businesses substantially similar to those engaged in by the Company, the value of which can be readily determined through objective means (such as through trading prices or 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 and whether the valuation method is used for other purposes that have a material economic effect on the Company,
its stockholders or its creditors. 

  
 4 

 2.33. “FICA” has the meaning set forth in Section 17.1(a). 

2.34. “Grant Date” means the date on which an Award is granted, which date may be specified in advance by the Committee.

 2.35. “Grantee” means an Eligible Person who has been granted an Award. 

2.36. “Immediate Family” has the meaning set forth in Section 5.4(c). 

2.37. “Incentive Stock Option” means an Option granted under Section 6 that is intended to meet the requirements of
Code Section 422. 
 2.38. “including” or “includes” means “including, but not
limited to,” or “includes, but is not limited to,” respectively. 
 2.39. “Non-Qualified Stock
Option” means an Option granted under Section 6 that is not intended to be an Incentive Stock Option. 
 2.40.
“Notice” has the meaning set forth in Section 6.6(a). 
 2.41. “100,000 Limit” has the
meaning set forth in Section 6.5(d). 
 2.42. “Option” means a right granted as an Award under the Plan to
purchase Shares for the Option Price (as to each such Share), and may be either an Incentive Stock Option or a Non-Qualified Stock Option. 
 2.43. “Option Price” means the price at which a Share may be purchased by a Grantee pursuant to an Option. 
 2.44. “Other Plans” has the meaning set forth in Section 6.5(d). 
 2.45. “Performance-Based Exception” means the performance-based exception from the tax deductibility limitations of Code Section 162(m) contained in Code Section 162(m)(4)(C)
(including, to the extent applicable, the special provision for options and stock appreciation rights thereunder). 
 2.46.
“Performance Goal” means the objective and/or subjective criteria determined by the Committee, the degree of attainment of which will affect (a) in the case of an Award other than an Annual Incentive Award, the amount of the
Award the Grantee is entitled to receive or retain, and (b) in the case of an Annual Incentive Award, the portion of the individual’s Bonus Opportunity potentially payable as an Annual Incentive Award. Performance Goals may contain
threshold, target and maximum levels of achievement and, to the extent the Committee intends an Award (other than an Option or Stock Appreciation Right, but including an Annual Incentive Award) to comply with the Performance-Based Exception, the
Performance Goals shall be chosen from among the Performance Measures set forth in Section 4.4(a). 

  
 5 

 2.47. “Performance Measures” has the meaning set forth in
Section 4.4(a). 
 2.48. “Performance Period” means that period established by the Committee at the time
any Performance Unit is granted or at any time thereafter during which any Performance Goals specified by the Committee with respect to such Award are to be measured. 
 2.49. “Performance Unit” means any grant pursuant to Section 11 of (a) a bonus consisting of cash or other property the amount or value of which, and/or the entitlement to
which, is conditioned upon the attainment of any Performance Goals specified by the Committee, or (b) a unit valued by reference to a designated amount of property other than Shares. 

2.50. “Permitted Transferee” has the meaning set forth in Section 5.4(c). 

2.51. “Person” means any individual, sole proprietorship, corporation, partnership, joint venture, limited liability
company, association, joint-stock company, trust, unincorporated organization, institution, public benefit corporation or other entity or government instrumentality, division, agency, body or department. 

2.52. “Plan” has the meaning set forth in Section 1.1 and also includes any appendices hereto. 

2.53. “Prior Grants” has the meaning set forth in Section 6.5(e). 

2.54. “Restricted Stock” means any Share issued as an Award under the Plan that is subject to Restrictions. 

2.55. “Restricted Stock Unit” or “RSU” means the right granted as an Award under the Plan to receive
Shares, conditioned on the satisfaction of Restrictions imposed by the Committee. 
 2.56. “Restrictions” means
any restriction on a Grantee’s free enjoyment of the Shares or other rights underlying Awards, including (a) a restriction that the Grantee or other holder may not sell, transfer, pledge or assign a Share or right, and (b) such other
restrictions as the Committee may impose in the Award Agreement (including any restriction on the right to vote such Share and the right to receive any dividends). Restrictions may be based upon the passage of time, the satisfaction of performance
criteria and/or the occurrence of one or more events or conditions, and shall lapse separately or in combination upon such conditions and at such time or times, in installments or otherwise, as the Committee shall specify. Awards subject to a
Restriction shall be forfeited if the Restriction does not lapse prior to such date, the occurrence of such event or the satisfaction of such other criteria as the Committee shall determine. 

2.57. “RSU Account” has the meaning set forth in Section 9.3. 

2.58. “Rule 16b-3” means Rule 16b-3 promulgated by the SEC under the Exchange Act, as amended from time to time,
together with any successor rule. 

  
 6 

 2.59. “SEC” means the United States Securities and Exchange Commission, or
any successor thereto. 
 2.60. “Section 16 Non-Employee Director” means a member of the Board who satisfies
the requirements to qualify as a “non-employee director” under Rule 16b-3. 
 2.61. “Section 16
Person” means a person who is subject to potential liability under Section 16(b) of the Exchange Act with respect to transactions involving equity securities of the Company. 

2.62. “Settlement Date” means the payment date for Restricted Stock Units or Deferred Stock, as set forth in
Section 9.3(b) or 10.4(c), as applicable. 
 2.63. “Share” means a share of Common Stock. 

2.64. “Stock Appreciation Right” or “SAR” means a right granted as an Award under the Plan to receive
an amount equal to the number of Shares with respect to which the SAR is exercised, multiplied by the excess of (a) the Fair Market Value (or such lower per-Share price as is set forth in the Award Agreement) of one Share on the Exercise Date
over (b) the Strike Price. 
 2.65. “Strike Price” means the per-Share price used as the baseline measure
for the value of a SAR, as specified in the applicable Award Agreement. 
 2.66. “Subsidiary” means any Person
that directly, or through one (1) or more intermediaries, is controlled by the Company and that would be treated as part of a single controlled group of corporations with the Company under Code Sections 414(b) and 414(c) if the language
“at least 50 percent” is used instead of “at least 80 percent” each place it appears in Code Sections 1563(a)(1), (2), and (3) and Treasury Regulation 1.414(c)-2. 

2.67. “Subsidiary Corporation” has the meaning set forth in Section 6.5. 

2.68. “Substitute Award” has the meaning set forth in Section 5.6. 

2.69. “Tax Date” has the meaning set forth in Section 17.1(a). 

2.70. “Tendered Restricted Shares” has the meaning set forth in Section 6.6(b). 

2.71. “Term” means the period beginning on the Grant Date of an Option or SAR and ending on the date such Option or SAR
expires, terminates or is cancelled. 
 2.72. “Termination of Service” means, 

(a) with respect to awards other than Deferred Compensation Awards, the first day on which (i) an individual is for any reason no
longer providing services to an Employer as an employee, director or consultant or (ii) with respect to an individual who is an employee or consultant to a Subsidiary, such entity ceases to be a Subsidiary of the Company and such individual is
no longer providing services to the Company or another Subsidiary; provided, 

  
 7 

 
however, that the Committee shall have the discretion to determine when a Grantee, who terminates services as an employee, but continues to provide services in the capacity of a consultant
or director immediately following such termination, has incurred a Termination of Service; or 
 (b) with respect to Deferred
Compensation Awards, a “separation from service” within the meaning of Treasury Regulation Section 1.409A-1(h). 

2.73. “Total Payments” has the meaning set forth in Section 18.7. 

2.74. “Year” means a calendar year. 
 Section 3. 
 Administration 

3.1. Committee. 
 (a) Subject to Section 3.2, the Plan shall be administered by the Compensation Committee of the Board or such other committee of the Board as shall be determined by the Board (in any case, the
“Committee”). The members of the Committee shall be appointed by the Board from time to time and may be removed by the Board from time to time. The Committee shall consist of two or more directors of the Company, all of whom
(i) are Section 16 Non-Employee Directors and/or (ii) qualify as “outside directors” within the meaning of Code Section 162(m), as applicable. The number of members of the Committee shall from time to time be increased
or decreased, and shall be subject to such conditions, in each case as the Board deems necessary to permit transactions in Shares pursuant to the Plan to satisfy such conditions of Rule 16b-3 and the Performance-Based Exception as then in effect.

 (b) Subject to Section 4.4(c), the Committee may delegate, to the fullest extent permitted under applicable law, to the
Chief Executive Officer of the Company any or all of the authority of the Committee with respect to the grant of Awards to Grantees, other than Grantees who are executive officers, or are (or are expected to be) Covered Employees and/or are
Section 16 Persons at the time any such delegated authority is exercised. 
 3.2. Powers of the Committee. Subject
to and consistent with the provisions of the Plan, the Committee shall have full power and authority and sole discretion as follows: 
 (a) to determine when, to whom (i.e., what Eligible Persons) and in what types and amounts Awards should be granted; 
 (b) to grant Awards to Eligible Persons in any number, and to determine the terms and conditions applicable to each Award, including (in each case, based on such considerations as the Committee shall
determine) conditions intended to comply with Code Section 409A, the number of Shares or the amount of cash or other property to which an Award will relate, any Option Price or Strike Price, grant price or purchase price, any limitation or
Restriction, any schedule for or performance conditions relating to the earning of the Award or the lapse of limitations, forfeiture restrictions, restrictive covenants, restrictions on exercisability or transferability, any Performance Goals,
including those relating to the Company and/or a Subsidiary and/or any division thereof and/or an individual, and/or vesting based on the passage of time, satisfaction of performance criteria or the occurrence of one or more events or conditions;

  
 8 

 (c) to determine the benefit (including any Bonus Opportunity) payable under any Award and
to determine whether any performance, vesting or transfer conditions, including Performance Measures or Performance Goals, have been satisfied; 
 (d) to determine whether or not specific Awards shall be granted in connection with other specific Awards; 
 (e) to determine the Term of an Award, as applicable; 
 (f) to determine the
amount, if any, that a Grantee shall pay for Restricted Stock, whether to permit or require the payment of cash dividends thereon to be paid and/or deferred, and the terms related thereto, when Restricted Stock (including Restricted Stock acquired
upon the exercise of an Option) shall be forfeited and whether such Shares shall be held in escrow or other custodial arrangement; 
 (g) to determine whether, to what extent and under what circumstances an Award may be settled in, or the exercise price of an Award may be paid in, cash, Shares, other Awards or other property, or an
Award may be accelerated, vested, canceled, forfeited or surrendered or any terms of the Award may be waived, and to accelerate the exercisability of, and to accelerate or waive any or all of the terms and conditions applicable to, any Award or any
group of Awards for any reason and at any time or to extend the period subsequent to the Termination of Service within which an Award may continue to vest and/or be exercised; 
 (h) to determine with respect to Awards granted to Eligible Persons, whether, to what extent and under what circumstances cash, Shares, other Awards, other property and other amounts payable with respect
to an Award will be deferred, either at the election of the Grantee or if and to the extent specified in the Award Agreement automatically or at the election of the Committee (for purposes of limiting loss of deductions pursuant to Code
Section 162(m) or otherwise) and to provide for the payment of interest or other rate of return determined with reference to a predetermined actual investment or independently set interest rate, or with respect to other bases permitted under
Code Section 162(m), Code Section 409A or otherwise, for the period between the date of exercise and the date of payment or settlement of the Award; 
 (i) to determine whether a Grantee has a Disability; 
 (j) to determine whether
and under what circumstances a Grantee has incurred a Termination of Service (e.g., whether Termination of Service was for Cause); 
 (k) to make, amend, suspend, waive and rescind rules and regulations relating to the Plan; 
 (l) without the consent of the Grantee, to make adjustments in the terms and conditions of, and the criteria in, Awards in recognition of unusual or non-recurring events (including events described in
Section 4.2) affecting an Employer or the financial statements of 

  
 9 

 
an Employer, or in response to changes in applicable laws, regulations or accounting principles; provided, however, that in no event shall such adjustment increase the value of an
Award for a person expected to be a Covered Employee for whom the Committee desires to have the Performance-Based Exception apply; 
 (m) to appoint such agents as the Committee may deem necessary or advisable to administer the Plan; 
 (n) to determine the terms and conditions of all Award Agreements applicable to Eligible Persons (which need not be identical) and, with the consent of the Grantee (except as provided in this
Section 3.2(n), and Sections 5.5 and 15.2), to amend any such Award Agreement at any time; provided, however, that the consent of the Grantee shall not be required for any amendment (i) that does not adversely affect the
rights of the Grantee, or (ii) that is necessary or advisable (as determined by the Committee) to carry out the purpose of the Award as a result of any new law or regulation, or a change in an existing law or regulation or interpretation
thereof, or (iii) to the extent the Award Agreement specifically permits amendment without consent; 
 (o) to impose such
additional terms and conditions upon the grant, exercise or retention of Awards as the Committee may, before or concurrently with the grant thereof, deem appropriate, including limiting the percentage of Awards that may from time to time be
exercised by a Grantee and requiring the Grantee to enter into restrictive covenants; 
 (p) to correct any defect, supply any
omission or reconcile any inconsistency, and to construe and interpret the Plan, any rules and regulations adopted hereunder, Award Agreements or any other instrument entered into or relating to an Award under the Plan; and 

(q) to take any other action with respect to any matters relating to the Plan for which it is responsible and to make all other decisions
and determinations, including factual determinations, as may be required under the terms of the Plan or as the Committee may deem necessary or advisable for the administration of the Plan. 

Any action of the Committee with respect to the Plan shall be final, conclusive and binding on all Persons, including the Company,
Subsidiaries, any Grantee, any Eligible Person, any Person claiming any rights under the Plan from or through any Grantee, and stockholders, except to the extent the Committee may subsequently modify, or take further action not consistent with, its
prior action. If not specified in the Plan, the time at which the Committee must or may make any determination shall be determined by the Committee, and any such determination may thereafter be modified by the Committee. The express grant of any
specific power to the Committee, and the taking of any action by the Committee, shall not be construed as limiting any power or authority of the Committee. 
 All determinations of the Committee shall be made by a majority of its members; provided, however, that any determination affecting any Awards made or to be made to a member of the Committee
may, at the Board’s election, be made by the Board. 

  
 10 

 Section 4. 

Shares Subject to the Plan and Adjustments 
 4.1. Number of Shares Available for Grants. 
 (a) Subject to adjustment as
provided in Section 4.2, the aggregate number of Shares that may be delivered under the Plan shall not exceed 830,925 (the “Available Shares”). For purposes of this Section 4.1(a)), each Share delivered pursuant to an
Award shall reduce the Available Shares by one (1) Share; provided, however, that the number of Available Shares shall not be reduced for Substitute Awards or a SAR that, by its terms, from and after its Grant Date is payable only
in cash. If any Shares subject to an Award granted hereunder are forfeited or such Award otherwise terminates without the delivery of such Shares, the Shares subject to such Award, to the extent of any such forfeiture or termination, shall again be
available for grant under the Plan. If any Award is settled in cash, the Shares subject to such Award that are not delivered shall again be available for grants under the Plan. The following Shares may not again be made available for issuance as
Awards under the Plan: (i) Shares not issued or delivered as a result of the net settlement of an outstanding Option or SAR, (ii) Shares used to pay the Option Price or withholding taxes related to an outstanding Award, and
(iii) Shares repurchased on the open market with the proceeds of the Option Price. 
 (b) The Committee shall from time to
time determine the appropriate method for calculating the number of Shares that have been delivered pursuant to the Plan. Shares delivered pursuant to the Plan shall be issued only out of the authorized and issued, but not outstanding, Shares (i.e.,
treasury Shares), including Shares repurchased by the Company for purposes of the Plan. 
 (c) The maximum number of shares of
Common Stock that may be issued under the Plan in this Section 4.1 shall not be affected by (i) the cash payment of dividends or Dividend Equivalents in connection with outstanding Awards; or (ii) any Shares required to satisfy
Substitute Awards. 
 4.2. Adjustments in Authorized Shares and Awards. 

(a) In the event that the Committee determines that any dividend or other distribution (whether in the form of cash, Shares, or other
securities or property), stock split or combination, forward or reverse merger, reorganization, subdivision, consolidation or reduction of capital, recapitalization, consolidation, scheme of arrangement, split-up, spin-off or combination involving
the Company or repurchase or exchange of Shares, issuance of warrants or other rights to purchase Shares or other securities of the Company, or other similar corporate transaction or event affects the Shares such that an adjustment is determined by
the Committee to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the Committee shall, in such manner as it may deem equitable, adjust any or all of:
(i) the number and type of Shares (or other securities or property) with respect to which Awards may be granted, (ii) the number and type of Shares (or other securities or property) subject to outstanding Awards, (iii) Option Price,
Strike Price or other grant or exercise price (as applicable) with respect to any Award or, if deemed appropriate, make provision for a cash payment to the holder of an outstanding Award, (iv) the number and 

  
 11 

 
kind of Shares of outstanding Restricted Stock or relating to any other outstanding Award in connection with which Shares are subject, and (v) the number of Shares with respect to which
Awards may be granted to a Grantee; provided, however, that, in each case, with respect to Awards of Incentive Stock Options intended to continue to qualify as Incentive Stock Options after such adjustment, no such adjustment shall be
authorized to the extent that such adjustment would cause the Incentive Stock Option to fail to continue to qualify under Code Section 424(a); provided, further, that the number of Shares subject to any Award denominated in Shares
shall always be a whole number. 
 (b) Notwithstanding Section 4.2(a), any adjustments made pursuant to Section 4.2(a)
shall be made in such a manner as to ensure that, after such adjustment, Awards continue not to be non-qualified deferred compensation subject to Code Section 409A (or if such Awards are already subject to Code Section 409A, so as not to
give rise to adverse tax consequences thereunder.) 
 4.3. Compliance With Code Section 162(m). 

(a) Section 162(m) Compliance. To the extent the Committee determines that compliance with the Performance-Based Exception is
desirable with respect to an Award, Sections 4.3(b) and 4.4 shall apply. In the event that changes are made to Code Section 162(m) to permit flexibility with respect to any Awards available under the Plan, the Committee may, subject to this
Section 4.3, make any adjustments to such Awards as it deems appropriate. 
 (b) Annual Individual Limitations. No
Grantee may be granted Awards for (i) Options or SARs with respect to a number of Shares and (ii) Restricted Stock, Deferred Stock, Restricted Stock Units or Performance Units (or any other Award other than Options or SARs that is
determined by reference to the value of Shares or appreciation in the value of Shares) with respect to an aggregate number of Shares exceeding 550,000 Shares. If an Award denominated in Shares is cancelled, the Shares subject to the cancelled Award
continue to count against the maximum number of Shares that may be granted to a Grantee. All Shares specified in this Section 4.3(b) shall be adjusted to the extent necessary to reflect adjustments to Shares required by Section 4.2. No
Grantee may be granted a cash Award that would have a maximum payout, during any Year, exceeding $500,000. No Grantee may be granted a cash Award for a Performance Period of more than one (1) Year that would have a maximum payout, during the
Performance Period, that would exceed $500,000. 
 4.4. Performance Based Exception Under Code Section 162(m).

 (a) Performance Measures. Subject to Section 4.4(d), unless and until the Committee proposes for stockholder vote
and stockholders approve a change in the general Performance Measures set forth in this Section 4.4(a), for Awards (other than Options and SARs) designed to qualify for the Performance-Based Exception, the objective performance criteria shall
be based upon one or more of the following (each, a “Performance Measure”): 
 (i) Earnings
before any or all of interest, tax, depreciation or amortization (actual and adjusted and either in the aggregate or on a per-Share basis); 
 (ii) Earnings (either in the aggregate or on a per-Share basis); 

  
 12 

 (iii) Net income or loss (either in the aggregate or on a per-Share basis);

 (iv) Operating income; 

(v) Cash flow (either in the aggregate or on a per-Share basis); 

(vi) Free cash flow (either in the aggregate on a per-Share basis); 

(vii) Costs; 
 (viii) Gross or net revenues; 
 (ix) Gross profit; 

(x) Reductions in expense levels; 
 (xi) Operating and maintenance cost management and employee productivity; 
 (xii) Share price or total stockholder return (including growth measures and total stockholder return or attainment by the Shares of a specified value for a specified period of time); 

(xiii) Return on equity; 
 (xiv) Return on average assets or average equity; 
 (xv) Book value
per Share; 
 (xvi) Aggregate product unit and pricing targets; 

(xvii) Strategic business criteria, consisting of one or more objectives based on meeting specified revenue, sales, credit
quality, market share, market penetration, geographic business expansion goals, objectively identified project milestones, production volume levels, cost targets and goals relating to acquisitions or divestitures; 

(xviii) Achievement of objectives relating to employee turnover or other human capital metrics; 

(xix) Results of customer satisfaction surveys or other objective measures of customer experience; and/or 

(xx) Debt ratings, debt leverage and debt service. 
 provided, however, that applicable Performance Measures may be applied on a pre- or post-tax basis; provided, further, that the Committee may, on the Grant Date of an Award
intended to comply with the Performance-Based Exception, and in the case of other Awards, at any time, provide that the formula for such Award may include or exclude items to measure specific objectives, such as losses from discontinued operations,
extraordinary gains or losses, the cumulative effect of accounting changes, acquisitions or divestitures, foreign exchange impacts, non-cash warrant or equity award related charges and any unusual, non-recurring gain or loss. 

  
 13 

 (b) Flexibility in Setting Performance Measures. For Awards intended to comply with
the Performance-Based Exception, the Committee shall set the Performance Goals within the time period prescribed by Code Section 162(m). The Committee shall provide, in terms of an objective formula or standard, the method for computing the
amount of compensation payable to the Grantee if any Performance Goal is obtained. The levels of performance required with respect to Performance Measures may be expressed in absolute or relative levels and may be based upon a set increase, set
positive result, maintenance of the status quo, set decrease or set negative result. Performance Measures may differ for Awards to different Grantees. The Committee shall specify the weighting (which may be the same or different for multiple
objectives) to be given to each performance objective for purposes of determining the final amount payable with respect to any such Award. Any one or more of the Performance Measures may apply to the Grantee, a department, unit, division or function
within the Company or any one or more Subsidiaries, and may apply either alone or relative to the performance of other businesses or individuals (including industry or general market indices). 

(c) Adjustments. The Committee shall have the discretion to adjust the determinations of the degree of attainment of the
pre-established Performance Goals; provided, however, that Awards designed to qualify for the Performance-Based Exception may not (unless the Committee determines to amend the Award so that it no longer qualifies for the
Performance-Based Exception) be adjusted upward (i.e., the Committee shall retain the discretion to adjust such Award only downward). The Committee may not, unless the Committee determines to amend the Award so that it no longer qualifies for
the Performance-Based Exception, delegate any responsibility with respect to Awards intended to qualify for the Performance-Based Exception. All determinations by the Committee as to the achievement of the Performance Measure(s) shall be in writing
prior to payment of the Award. 
 (d) Changes to Performance Measures. In the event that applicable laws, rules or
regulations change to permit Committee discretion to alter the governing Performance Measures without obtaining stockholder approval of such changes, and still qualify for the Performance-Based Exception, the Committee shall have sole discretion to
make such changes without obtaining stockholder approval. 
 Section 5. 

Eligibility and General Conditions of Awards 
 5.1. Eligibility. The Committee may in its discretion grant Awards to any Eligible Person, whether or not he or she has previously received an Award. 

5.2. Award Agreement. To the extent not set forth in the Plan, the terms and conditions of each Award shall be set forth in an
Award Agreement. 
 5.3. General Terms and Termination of Service. Except as provided in an Award Agreement or as
otherwise provided below in this Section 5.3, all Options or SARs that have not been exercised, or any other Awards that remain subject to Restrictions or that are not otherwise 

  
 14 

 
vested or exercisable, at the time of a Termination of Service shall be cancelled and forfeited to the Company. Any Restricted Stock that is forfeited by the Grantee upon Termination of Service
shall be reacquired by the Company, and the Grantee shall sign any document and take any other action required to assign such Shares back to the Company. 
 (a) Options and SARs. Except as otherwise provided in an Award Agreement: 
 (i) If the Grantee incurs a Termination of Service due to his or her death or Disability, the Options or SARs shall become fully vested and exercisable at the time of such Termination of Service, and such
Options or SARs shall remain exercisable for a period of one (1) year from the date of such Termination of Service (but not beyond the original Term). To the extent the Options or SARs are not exercised at the end of such one (1) year
period, the Options or SARs shall be immediately cancelled and forfeited to the Company. 
 (ii) If the Grantee
incurs a Termination of Service by an Employer without Cause, the Options and SARs may thereafter be exercised, to the extent they were vested and exercisable at the time of such Termination of Service, for a period of thirty (30) days from the
date of such Termination of Service (but not beyond the original Term). To the extent the Options or SARs are not exercised at the end of such thirty (30)-day period, the Options or SARs shall be immediately cancelled and forfeited to the Company.
To the extent the Options and SARs are not vested and exercisable on the date of such Termination of Service, they shall be immediately cancelled and forfeited to the Company. 

(iii) If the Grantee incurs or a Termination of Service that is voluntary on the part of the Grantee (and not due to such
Grantee’s death or Disability), the Options and SARs may be exercised, to the extent they were vested and exercisable at the time of such Termination of Service, on a date that is no later than the date of such Termination of Service (but not
beyond the original Term). To the extent the Options or SARs are not exercised by the date of such Termination of Service, the Options or SARs shall be immediately cancelled and forfeited to the Company. To the extent the Options and SARs are not
vested and exercisable on the date of such Termination of Service, they shall be immediately cancelled and forfeited to the Company 
 (iv) If the Grantee incurs a Termination of Service for Cause, all unexercised Options and SARs (whether vested or unvested) shall be immediately canceled and forfeited to the Company. 

(b) Restricted Stock. Except as otherwise provided in an Award Agreement: 

(i) If Termination of Service occurs by reason of the Grantee’s death or Disability, such Grantee’s Restricted
Stock shall become immediately vested and no longer subject to Restrictions. 
 (ii) If Termination of Service
occurs for any reason other than the Grantee’s death or Disability while the Grantee’s Restricted Stock is subject to a Restriction(s), all of such Grantee’s Restricted Stock that is unvested or still subject to Restrictions shall be
forfeited by the Grantee. 

  
 15 

 (c) Dividend Equivalents. If Dividend Equivalents have been credited with respect to
any Award and such Award (in whole or in part) is forfeited, all Dividend Equivalents issued in connection with such forfeited Award (or portion of an Award) shall also be forfeited to the Company. 

(d) Waiver. Notwithstanding anything to the contrary in the Plan, the Committee may in its sole discretion as to all or part of
any Award, at the time the Award is granted or thereafter, (i) determine that Awards shall become exercisable or vested, or Restrictions shall lapse, (ii) determine that Awards shall continue to become exercisable or vested in full or in
installments, or Restrictions shall continue to lapse, after a Termination of Service, (iii) extend the period for exercise of Options or SARs following a Termination of Service (but not beyond the original Term), or (iv) provide that any
Award shall, in whole or in part, not be forfeited upon such Termination of Service. 
 5.4. Non-transferability of
Awards. 
 (a) Each Award and each right under any Award shall be exercisable only by the Grantee during the Grantee’s
lifetime, or, if permissible under applicable law, by the Grantee’s guardian or legal representative. 
 (b) No Award
(prior to the time, if applicable, Shares are delivered in respect of such Award), and no right under any Award, may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a Grantee other than by will or by the
laws of descent and distribution, and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or any Subsidiary; provided, however, that the
designation of a Beneficiary to receive benefits in the event of the Grantee’s death, or a transfer by the Grantee to the Company with respect to Restricted Stock, shall not constitute an assignment, alienation, pledge, attachment, sale,
transfer or encumbrance for purposes of this Section 5.4(b). If so determined by the Committee, a Grantee may, in the manner established by the Committee, designate a Beneficiary or Beneficiaries to exercise the rights of the Grantee, and to
receive any distribution with respect to any Award upon the death of the Grantee. A transferee, Beneficiary, guardian, legal representative or other person claiming any rights under the Plan from or through any Grantee shall be subject to the
provisions of the Plan and any applicable Award Agreement, except to the extent the Plan and Award Agreement otherwise provide with respect to such persons, and to any additional restrictions or limitations deemed necessary or appropriate by the
Committee. 
 (c) Notwithstanding Sections 5.4(a) and 5.4(b) above, to the extent provided in the applicable Award Agreement,
Non-Qualified Stock Options may be transferred, without consideration, to a Permitted Transferee. For this purpose, (i) a “Permitted Transferee” in respect of any Grantee means any member of the Immediate Family of such
Grantee, any trust of which all of the primary beneficiaries are such Grantee or members of his or her Immediate Family, or any partnership, limited liability company, corporation or similar entity of which all of the partners, members or
stockholders are such Grantee or members of his or her Immediate 

  
 16 

 
Family, and (ii) the “Immediate Family” of a Grantee means the Grantee’s spouse, former spouse, children, stepchildren, grandchildren, parents, stepparents, siblings,
grandparents, nieces, nephews, mother-in-law, father-in-law, sons-in-law, daughters-in-law, brothers-in-law, or sisters-in-law, including adoptive relationships. Such Award may be exercised by such Permitted Transferee in accordance with the terms
of such Award. 
 (d) Nothing herein shall be construed as requiring the Committee to honor the order of a domestic relations
court regarding an Award, except to the extent required under applicable law. 
 5.5. Cancellation and Rescission of
Awards. Unless the Award Agreement specifies otherwise, the Committee may cancel, rescind, suspend, withhold or otherwise limit or restrict any unexercised or unsettled Award at any time if the Grantee is not in compliance with all applicable
provisions of the Award Agreement and the Plan, or is in violation of any restrictive covenant or other agreement with an Employer. 
 5.6. Substitute Awards. The Committee may, in its discretion and on such terms and conditions as the Committee considers appropriate under the circumstances, grant Substitute Awards under the Plan.
For purposes of this Section 5.6, “Substitute Award” means an Award granted under the Plan in substitution for stock and stock-based awards (“Acquired Entity Awards”) held by current and former employees or
non-employee directors of, or consultants to, another corporation or entity who become Eligible Persons as the result of a merger, consolidation or combination of the employing corporation or other entity (the “Acquired
Entity”) with the Company or a Subsidiary or the acquisition by the Company or a Subsidiary of property or stock of the Acquired Entity (provided such persons held such awards immediately prior to such merger, consolidation, acquisition or
combination) in order to preserve for the Grantee the economic value of all or a portion of such Acquired Entity Award at such price as the Committee determines necessary to achieve such preservation of economic value. 

5.7. Exercise by Non-Grantee. If any Award is exercised as permitted by the Plan by any Person other than the Grantee, the
exercise notice shall be accompanied by such documentation as may reasonably be required by the Committee, including, without limitation, evidence of authority of such Person or Persons to exercise the Award and, if the Committee so specifies,
evidence satisfactory to the Company that any estate taxes payable with respect to such Shares have been paid or provided for. 

5.8. No Cash Consideration for Awards. Awards may be granted for no cash consideration or for such minimal cash consideration as
may be required by applicable law. 
 Section 6. 

Stock Options 
 6.1. Grant of Options. Subject to and consistent with the provisions of the Plan, Options may be granted to any Eligible Person in such number, and upon such terms, and at any time and from time to
time as shall be determined by the Committee. 

  
 17 

 6.2. Award Agreement. Each Option grant shall be evidenced by an Award Agreement in
such form as the Committee may approve that shall specify the Grant Date, the Option Price, the Term (which shall be ten (10) years from its Grant Date unless the Committee otherwise specifies a shorter period in the Award Agreement), the
number of Shares to which the Option pertains, the time or times at which such Option shall be exercisable and such other provisions (including Restrictions) not inconsistent with the provisions of the Plan as the Committee shall determine.

 6.3. Option Price. The purchase price per Share purchasable under an Option shall be determined by the Committee;
provided, however, that such purchase price shall not be less than one hundred percent (100%) of the Fair Market Value of a Share on the Grant Date. Subject to the adjustment allowed in Section 4.2, or as otherwise
permissible under this Section 6.3, neither the Committee nor the Board shall have the authority or discretion to change the Option Price of any outstanding Option. Without the approval of stockholders, neither the Committee nor the Board will
amend or replace previously granted Options or SARs in a transaction that constitutes “repricing,” which for this purpose means any of the following or any action that has the same effect: (a) lowering the exercise price of an Option
or SAR after it is granted; (b) any other action that is treated as a repricing under generally accepted accounting principles; (c) cancelling an Option or SAR at a time when its exercise price exceeds the Fair Market Value of the
underlying Stock, in exchange for another Award, other equity, cash or other property; provided, however, that the foregoing transactions shall not be deemed a repricing if done pursuant to an adjustment authorized under
Section 4.2. 
 6.4. Vesting. Unless otherwise specified in the applicable Award Agreement, Section 5.3(a), or
Section 14, an Option shall become vested and exercisable as follows: 
 (a) the Option shall vest with respect to 20% of
the Shares purchasable under the Option on the first anniversary of the Grant Date; 
 (b) the Option shall vest with respect to
an additional 20% of the Shares purchasable under the Option on the second anniversary of the Grant Date; 
 (c) the Option
shall vest with respect to an additional 20% of the Shares purchasable under the Option on the third anniversary of the Grant Date; 
 (d) the Option shall vest with respect to an additional 20% of the Shares purchasable under the Option on the fourth anniversary of the Grant Date; and 

(e) the Option shall vest with respect to the remaining Shares purchasable under the Option on the fifth anniversary of the Grant Date.

 6.5. Grant of Incentive Stock Options. At the time of the grant of any Option, the Committee may, in its discretion,
designate that such Option shall be made subject to additional restrictions to permit it to qualify as an Incentive Stock Option. Any Option designated as an Incentive Stock Option: 

(a) shall be granted only to an employee of the Company or a Subsidiary Corporation; 

  
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 (b) shall have an Option Price of not less than one hundred percent (100%) of the Fair
Market Value of a Share on the Grant Date, and, if granted to a person who owns capital stock (including stock treated as owned under Code Section 424(d)) possessing more than ten percent (10%) of the total combined voting power of all
classes of capital stock of the Company or any Subsidiary Corporation (a “10% Owner”), have an Option Price not less than one hundred ten percent (110%) of the Fair Market Value of a Share on its Grant Date; 

(c) shall have a Term of not more than ten (10) years (five (5) years if the Grantee is a 10% Owner) from its Grant Date, and
shall be subject to earlier termination as provided herein or in the applicable Award Agreement; 
 (d) shall not have an
aggregate Fair Market Value (as of the Grant Date) of the Shares with respect to which Incentive Stock Options (whether granted under the Plan or any other equity incentive plan of the Grantee’s employer or any parent or Subsidiary Corporation
(“Other Plans”)) are exercisable for the first time by such Grantee during any Year (“Current Grant”), determined in accordance with the provisions of Code Section 422, which exceeds $100,000 (the
“$100,000 Limit”); 
 (e) shall, if the aggregate Fair Market Value of the Shares (determined on the Grant
Date) with respect to the Current Grant and all Incentive Stock Options previously granted under the Plan and any Other Plans that are exercisable for the first time during a Year (“Prior Grants”) would exceed the $100,000 Limit,
be, as to the portion in excess of the $100,000 Limit, exercisable as a separate Non-Qualified Stock Option at such date or dates as are provided in the Current Grant; 
 (f) shall require the Grantee to notify the Committee of any disposition of any Shares delivered pursuant to the exercise of the Incentive Stock Option under the circumstances described in Code
Section 421(b) (relating to holding periods and certain disqualifying dispositions) (“Disqualifying Disposition”), within ten (10) days of such a Disqualifying Disposition; 

(g) shall, by its terms, not be assignable or transferable other than by will or the laws of descent and distribution and may be
exercised, during the Grantee’s lifetime, only by the Grantee; provided, however, that the Grantee may, to the extent provided in the Plan in any manner specified by the Committee, designate in writing a Beneficiary to exercise
his or her Incentive Stock Option after the Grantee’s death; and 
 (h) shall, if such Option nevertheless fails to meet
the foregoing requirements, or otherwise fails to meet the requirements of Code Section 422 for an Incentive Stock Option, be treated for all purposes of the Plan, except as otherwise provided in subsections (d) and (e) above, as a
Non-Qualified Stock Option. 
 For purposes of this Section 6.5, “Subsidiary Corporation” means a corporation other than
the Company in an unbroken chain of corporations beginning with the Company if, at the time of granting the Option, each of the corporations other than the last corporation in the unbroken chain owns stock possessing fifty percent (50%) or more
of the total combined voting power of all classes of stock in one of the other corporations in such chain. Notwithstanding the foregoing 

  
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and Sections 3.2(n) and 15.2, the Committee may, without the consent of the Grantee, at any time before the exercise of an Option (whether or not an Incentive Stock Option), take any action
necessary to prevent such Option from being treated as an Incentive Stock Option. 
 6.6. Exercise and Payment.

 (a) Except as may otherwise be provided by the Committee in an Award Agreement, Options shall be exercised by the delivery of
a written notice (“Notice”) to the Company setting forth the number of whole Shares to be exercised, accompanied by full payment (including any applicable tax withholding) for the Shares made by any one or more of the following
means on the Exercise Date (or such other date as may be permitted in writing by the Secretary of the Company): 

(i) cash, personal check, money order, cashier’s check, or wire transfer; 

(ii) with the approval of the Committee, Shares or Shares of Restricted Stock valued, as determined by the Committee, at
an amount not to exceed the Fair Market Value of a Share on the Exercise Date; or 
 (iii) subject to applicable
law and the Company’s policies, through the sale of the Shares acquired on exercise of the Option through a broker-dealer to whom the Grantee has submitted an irrevocable notice of exercise and irrevocable instructions to deliver promptly to
the Company the amount of sale or loan proceeds sufficient to pay for such Shares, together with, if requested by the Company, the amount of applicable withholding taxes payable by Grantee by reason of such exercise. 

(b) The Committee may, in its discretion, specify that, if any Shares of Restricted Stock (“Tendered Restricted Shares”)
are used to pay the Option Price, (i) all the Shares acquired on exercise of the Option shall be subject to the same Restrictions as the Tendered Restricted Shares, determined as of the Exercise Date, or (ii) a number of Shares acquired on
exercise of the Option equal to the number of Tendered Restricted Shares shall be subject to the same Restrictions as the Tendered Restricted Shares, determined as of the Exercise Date. 

(c) If the Option is exercised as permitted by the Plan by any Person other than the Grantee, the Notice shall be accompanied by
documentation as may reasonably be required by the Company, including evidence of authority of such Person or Persons to exercise the Option. 
 (d) At the time a Grantee exercises an Option or to the extent provided by the Committee in the applicable Award Agreement, in lieu of accepting payment of the Option Price of the Option and delivering
the number of Shares of Common Stock for which the Option is being exercised, the Committee may direct that the Company either (i) pay the Grantee a cash amount, or (ii) issue a lesser number of Shares of Common Stock, in any such case,
having a Fair Market Value on the Exercise Date equal to the amount, if any, by which the aggregate Fair Market Value (or such other amount as may be specified in the applicable Award Agreement, in the case of an exercise occurring concurrent with a
Change in Control) of the Shares of Common Stock as to which the Option is being exercised exceeds the aggregate Option Price for such Shares, based on such terms and conditions as the Committee shall establish. 

  
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 Section 7. 

Stock Appreciation Rights 
 7.1. Grant of SARs. Subject to and consistent with the provisions of the Plan, the Committee, at any time and from time to time, may grant SARs to any Eligible Person on a standalone basis or in
tandem with an Option. The Committee may impose such conditions or restrictions on the exercise of any SAR as it shall deem appropriate. 
 7.2. Award Agreements. Each SAR grant shall be evidenced by an Award Agreement in such form as the Committee may approve, which shall specify the Grant Date, the Strike Price, the Term (which shall
be ten (10) years from its Grant Date unless the Committee otherwise specifies a shorter period in the Award Agreement), the number of Shares to which the SAR pertains, the time or times at which such SAR shall be exercisable and such other
provisions (including Restrictions) not inconsistent with the provisions of the Plan as shall be determined by the Committee. 

7.3. Strike Price. The Strike Price of a SAR shall be determined by the Committee in its sole discretion; provided,
however, that the Strike Price shall not be less than one hundred percent (100%) of the Fair Market Value of a Share on the Grant Date of the SAR. 
 7.4. Vesting. Unless otherwise specified in the applicable Award Agreement, Section 5.3(a), or Section 14, SARs shall become vested and exercisable as follows: 

(a) the SAR shall vest with respect to 20% of the Shares to which the SAR pertains on the first anniversary of the Grant Date; 

(b) the SAR shall vest with respect to an additional 20% of the Shares to which the SAR pertains on the second anniversary of the Grant
Date; 
 (c) the SAR shall vest with respect to an additional 20% of the Shares to which the SAR pertains on the third
anniversary of the Grant Date; 
 (d) the SAR shall vest with respect to an additional 20% of the Shares to which the SAR
pertains on the fourth anniversary of the Grant Date; and 
 (e) the SAR shall vest with respect to the remaining Shares to
which the SAR pertains on the fifth anniversary of the Grant Date. 
 7.5. Exercise and Payment. Except as may otherwise
be provided by the Committee in an Award Agreement, SARs shall be exercised by the delivery of a written notice to the Company, setting forth the number of whole Shares with respect to which the SAR is to be exercised. No payment of a SAR shall be
made unless applicable tax withholding requirements have been satisfied in accordance with Section 17.1 or otherwise. Any payment by the Company in respect of a SAR may be made in cash, Shares, other property, or any combination thereof, as the
Committee, in its sole discretion, shall determine. 

  
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 7.6. Grant Limitations. The Committee may at any time impose any other limitations or
Restrictions upon the exercise of SARs that it deems necessary or desirable in order to achieve desirable tax results for the Grantee or the Company. 
 Section 8. 
 Restricted Stock 

8.1. Grant of Restricted Stock. Subject to and consistent with the provisions of the Plan, the Committee, at any time and from time
to time, may grant Restricted Stock to any Eligible Person in such amounts as the Committee shall determine. 
 8.2. Award
Agreement. Each grant of Restricted Stock shall be evidenced by an Award Agreement that shall specify the Restrictions, the number of Shares subject to the Restricted Stock Award, and such other provisions not inconsistent with the provisions of
the Plan as the Committee shall determine. The Committee may impose such Restrictions on any Award of Restricted Stock as it deems appropriate, including time-based Restrictions, Restrictions based upon the achievement of specific Performance Goals,
Restrictions based on the occurrence of a specified event, Restrictions under applicable laws or pursuant to a regulatory entity with authority over the Company or a Subsidiary, and/or a combination of any of the foregoing. 

8.3. Consideration for Restricted Stock. The Committee shall determine the amount, if any, that a Grantee shall pay for Restricted
Stock. 
 8.4. Vesting. Unless otherwise specified in the applicable Award Agreement, Section 5.3(b), or
Section 14, a Restricted Stock Award shall become vested as follows: 
 (a) 20% of the Shares subject to the Restricted
Stock Award shall vest on the first anniversary of the Grant Date; 
 (b) an additional 20% of the Shares subject to the
Restricted Stock Award shall vest on the second anniversary of the Grant Date; 
 (c) an additional 20% of the Shares subject to
the Restricted Stock Award shall vest on the third anniversary of the Grant Date; 
 (d) an additional 20% of the Shares subject
to the Restricted Stock Award shall vest on the fourth anniversary of the Grant Date; and 
 (e) the remaining Shares subject to
the Restricted Stock Award shall vest on the fifth anniversary of the Grant Date. 
 For purposes of calculating the number of Shares of
Restricted Stock that vest as set forth above, Share amounts shall be rounded to the nearest whole Share amount, unless otherwise specified in the applicable Award Agreement. 

  
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 8.5. Effect of Forfeiture. If Restricted Stock is forfeited, and if the Grantee was
required to pay for such Shares of Restricted Stock or acquired such Shares upon the exercise of an Option, the Grantee shall be deemed to have resold such Restricted Stock to the Company at a price equal to the lesser of (a) the amount paid by
the Grantee for such Restricted Stock or the Option Price, as applicable, and (b) the Fair Market Value of a Share on the date of such forfeiture. The Company shall pay to the Grantee the deemed sale price as soon as administratively practical.
Such Restricted Stock shall cease to be outstanding and shall no longer confer on the Grantee thereof any rights as a stockholder of the Company, from and after the date of the event causing the forfeiture, whether or not the Grantee accepts the
Company’s tender of payment for such Restricted Stock. 
 8.6. Escrow; Legends. The Committee may provide that the
certificates for any Restricted Stock (a) shall be held (together with a stock power executed in blank by the Grantee) in escrow by the Secretary of the Company until such Restricted Stock becomes non-forfeitable or vested and transferable, or
is forfeited and/or (b) shall bear an appropriate legend restricting the transfer of such Restricted Stock under the Plan. If any Restricted Stock becomes non-forfeitable or vested and transferable, the Company shall cause certificates for such
Shares to be delivered without such legend or shall cause a release of restrictions on a book entry account maintained by the Company’s transfer agent. 
 8.7. Stockholder Rights in Restricted Stock. Restricted Stock, whether held by a Grantee or in escrow or other custodial arrangement by the Secretary of the Company, shall confer on the Grantee all
rights of a stockholder of the Company, except as otherwise provided in the Plan or Award Agreement. At the time of a grant of Restricted Stock, the Committee may require the payment of cash dividends thereon to be deferred and, if the Committee so
determines, reinvested in additional Shares of Restricted Stock. Stock dividends and deferred cash dividends issued with respect to Restricted Stock shall be subject to the same Restrictions and other terms (including forfeiture) as apply to the
Shares of Restricted Stock with respect to which such dividends are issued. The Committee may, in its discretion, provide for payment of interest on deferred cash dividends. 
 Section 9. 
 Restricted Stock Units 

9.1. Grant of Restricted Stock Units. Subject to and consistent with the provisions of the Plan and applicable requirements of
Code Sections 409A(a)(2), (3) and (4), the Committee, at any time and from time to time, may grant Restricted Stock Units to any Eligible Person, in such amount and upon such terms as the Committee shall determine. A Grantee shall have no
stockholder voting rights with respect to Restricted Stock Units. 
 9.2. Award Agreement. Each grant of Restricted Stock
Units shall be evidenced by an Award Agreement that shall specify the Restrictions, the number of Shares subject to the Restricted Stock Units granted, and such other provisions not inconsistent with the Plan or Code Section 409A as the
Committee shall determine. The Committee may impose such Restrictions on Restricted Stock Units as it deems appropriate, including time-based Restrictions, Restrictions based on the achievement of specific Performance Goals, Restrictions based on
the occurrence of a specified event, or restrictions under securities laws or pursuant to a regulatory entity with authority over the Company or a Subsidiary, and/or a combination of any of the foregoing. 

  
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 9.3. Crediting Restricted Stock Units. The Company shall establish an account
(“RSU Account”) on its books for each Eligible Person who receives a grant of Restricted Stock Units. Restricted Stock Units shall be credited to the Grantee’s RSU Account as of the Grant Date of such Restricted Stock Units.
RSU Accounts shall be maintained for recordkeeping purposes only, and the Company shall not be obligated to segregate or set aside assets representing securities or other amounts credited to RSU Accounts. The obligation to make distributions of
securities or other amounts credited to RSU Accounts shall be an unfunded, unsecured obligation of the Company. 
 (a)
Crediting of Dividend Equivalents. Except as otherwise provided in an Award Agreement, whenever dividends are paid or distributions made with respect to Shares, Dividend Equivalents shall be credited to RSU Accounts on all Restricted Stock
Units credited thereto as of the record date for such dividend or distribution. Such Dividend Equivalents shall be credited to the RSU Account in the form of additional Restricted Stock Units in a number determined by dividing the aggregate value of
such Dividend Equivalents by the Fair Market Value of a Share on the payment date of such dividend or distribution. 
 (b)
Settlement of RSU Accounts. The Company shall settle an RSU Account by delivering to the holder thereof (which may be the Grantee or his or her Beneficiary, as applicable) a number of Shares equal to the whole number of Shares underlying the
Restricted Stock Units then credited to the Grantee’s RSU Account (or a specified portion in the event of any partial settlement); provided, however, that any fractional Shares underlying Restricted Stock Units remaining in
the RSU Account on the Settlement Date shall either be forfeited or distributed in cash in an amount equal to the Fair Market Value of a Share as of the Settlement Date multiplied by the remaining fractional Restricted Stock Unit, as determined by
the Committee. Unless otherwise provided in an Award Agreement, the Settlement Date for all Restricted Stock Units credited to a Grantee’s RSU Account shall be as soon as administratively practical following when Restrictions applicable to
an Award of Restricted Stock Units have lapsed, but in no event shall such Settlement Date be later than March 15 of the Year following the Year in which the Restrictions applicable to an Award of Restricted Stock Units have lapsed. Unless
otherwise provided in an Award Agreement, in the event of a Grantee’s Termination of Service prior to the lapse of such Restrictions, such Grantee’s Restricted Stock Units shall be immediately cancelled and forfeited to the Company.

 Section 10. 
 Deferred Stock 
 10.1. Grant of Deferred Stock. Subject to and
consistent with the provisions of the Plan and applicable requirements of Code Sections 409A(a)(2), (3), and (4), the Committee, at any time and from time to time, may grant Deferred Stock to any Eligible Person in such number, and upon such terms,
as the Committee, at any time and from time to time, shall determine (including, to the extent allowed by the Committee, grants at the election of a Grantee to convert Shares to be acquired upon lapse of Restrictions on Restricted Stock or
Restricted Stock Units into such Deferred Stock). A Grantee shall have no voting rights in Deferred Stock. 
 10.2. Award
Agreement. Each grant of Deferred Stock shall be evidenced by an Award Agreement that shall specify the number of Shares underlying the Deferred Stock subject to an Award, the Settlement Date such Shares of Deferred Stock shall be settled and
such other provisions as the Committee shall determine that are in accordance with the Plan and Code Section 409A. 

  
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 10.3. Deferred Stock Elections. 

(a) Making of Deferral Elections. If and to the extent permitted by the Committee, an Eligible Person may elect (a
“Deferral Election”) at such times and in accordance with rules and procedures adopted by the Committee (which shall comport with Code Section 409A), to receive all or any portion of his salary, bonus and/or cash retainer (in
the case of a director) (including any cash or Share Award, other than Options or SARs) either in the form of a number of shares of Deferred Stock equal to the quotient of the amount of salary, bonus and/or cash retainer or other permissible Award
to be paid in the form of Deferred Stock divided by the Fair Market Value of a Share on the date such salary, bonus, cash retainer or other such Award would otherwise be paid in cash or distributed in Shares or pursuant to such other terms and
conditions as the Committee may determine. The Grant Date for an Award of Deferred Stock made pursuant to a Deferral Election shall be the date the deferrable amount subject to a Deferral Election would otherwise have been paid to the Grantee in
cash or Shares. 
 (b) Timing of Deferral Elections. An initial Deferral Election must be filed with the Company
(pursuant to procedures established by the Committee) no later than December 31 of the Year preceding the Year in which the amounts subject to the Deferral Election would otherwise be earned, subject to such restrictions and advance filing
requirements as the Company may impose. A Deferral Election shall be irrevocable as of the filing deadline, unless the Company has specified an earlier time at which it shall be irrevocable. Each Deferral Election shall remain in effect with respect
to subsequently earned amounts unless the Eligible Person revokes or changes such Deferral Election. Any such revocation or change shall have prospective application only and must be made at a time at which a subsequent Deferral Election is
permitted. 
 (c) Subsequent Deferral Elections. A Deferral Election (other than an initial Deferral Election) made with
respect to a Deferred Compensation Award must meet the timing requirements for a subsequent deferral election as specified in Treasury Regulation Section 1.409A-2(b). 
 10.4. Deferral Account. 
 (a) Establishment of Deferral Accounts. The
Company shall establish an account (“Deferral Account”) on its books for each Eligible Person who receives a grant of Deferred Stock or makes a Deferral Election. Deferred Stock shall be credited to the Grantee’s Deferral
Account as of the Grant Date of such Deferred Stock. Deferral Accounts shall be maintained for recordkeeping purposes only, and the Company shall not be obligated to segregate or set aside assets representing securities or other amounts credited to
Deferral Accounts. The obligation to make distributions of securities or other amounts credited to Deferral Accounts shall be an unfunded, unsecured obligation of the Company. 

  
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 (b) Crediting of Dividend Equivalents. Except as otherwise provided in an Award
Agreement, whenever dividends are paid or distributions made with respect to Shares, Dividend Equivalents shall be credited to Deferral Accounts on all Deferred Stock credited thereto as of the record date for such dividend or distribution. Such
Dividend Equivalents shall be credited to the Deferral Account in the form of additional Deferred Stock in a number determined by dividing the aggregate value of such Dividend Equivalents by the Fair Market Value of a Share at the payment date of
such dividend or distribution. 
 (c) Settlement of Deferral Accounts. The Company shall settle a Deferral Account by
delivering to the holder thereof (which may be the Grantee or his or her Beneficiary, as applicable) a number of Shares equal to the whole number of Shares of Deferred Stock then credited to the Grantee’s Deferral Account (or a specified
portion in the event of any partial settlement); provided, however, that any fractional Shares of Deferred Stock remaining in the Deferral Account on the Settlement Date shall either be forfeited or distributed in cash in an
amount equal to the Fair Market Value of a Share as of the Settlement Date multiplied by the remaining fractional Share, as determined by the Committee. The Settlement Date for all Deferred Stock credited in a Grantee’s Deferral Account shall
be determined in accordance with Code Section 409A and shall be specified in the applicable Award Agreement or Deferral Election. The Settlement Date for Deferred Stock, as may be permitted by the Committee in its discretion and as specified in
the Award Agreement or Deferral Election, is limited to one or more of the following events: (i) a specified date within the meaning of Treasury Regulation Section 1.409A-3(i)(1), (ii) a Change in Control, (iii) the
Grantee’s “separation from service” as provided in Treasury Regulation Section 1.409A-1(h), (iv) the Grantee’s death, (v) the Grantee’s Disability, or (vi) an “unforeseeable emergency” of the
Grantee as provided in Treasury Regulation Section 1.409A-3(i)(3). 
 Section 11. 

Performance Units 
 11.1. Grant of Performance Units. Subject to and consistent with the provisions of the Plan, Performance Units may be granted to any Eligible Person in such number and upon such terms, and at any
time and from time to time, as shall be determined by the Committee. Performance Units shall be evidenced by an Award Agreement in such form as the Committee may approve, which shall contain such terms and conditions not inconsistent with the
provisions of the Plan as shall be determined by the Committee. 
 11.2. Value/Performance Goals. The Committee shall set
Performance Goals in its discretion which, depending on the extent to which they are met during a Performance Period, will determine the number or value of Performance Units that will be paid to the Grantee at the end of the Performance Period. Each
Performance Unit shall have an initial value that is established by the Committee at the time of grant. The Performance Goals for Awards of Performance Units may be set by the Committee at threshold, target and maximum performance levels with the
number or value of the Performance Units payable directly correlated to the degree of attainment of the various performance levels during the Performance Period. Unless otherwise provided in an Award Agreement, no payment shall be made with respect
to a Performance Unit Award if the threshold performance level is not satisfied. If Performance Goals are attained between the threshold and target performance levels or between the target and 

  
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maximum performance levels, the number or value of Performance Units under such Award shall be determined by linear interpolation, unless otherwise provided in an Award Agreement. With respect to
Covered Employees and to the extent the Committee deems it appropriate to comply with the Performance-Based Exception under Code Section 162(m), the Committee shall provide, in terms of an objective formula or standard, the method for computing
the amount of compensation payable to the Grantee if the applicable Performance Goal is obtained and any Performance Goal shall be set by the Committee within the time period prescribed by Code Section 162(m). 

11.3. Earning of Performance Units. Except as provided in Section 13, after the applicable Performance Period has ended, the
holder of Performance Units shall be entitled to payment based on the level of achievement of Performance Goals set by the Committee and as described in Section 11.2. If the Performance Unit is intended to comply with the Performance-Based
Exception, the Committee shall certify the level of achievement of the Performance Goals in writing before the Award is settled. At the discretion of the Committee, the Award Agreement may specify that an Award of Performance Units is payable in
cash, Shares, Restricted Stock or Restricted Stock Units. 
 11.4. Adjustment on Change of Position. If a Grantee is
promoted, demoted or transferred to a different business unit of the Company during a Performance Period, then, to the extent the Committee determines that the Award, the Performance Goals or the Performance Period are no longer appropriate, the
Committee may adjust, change, eliminate or cancel the Award, the Performance Goals or the applicable Performance Period, as it deems appropriate in order to make them appropriate and comparable to the initial Award, the Performance Goals or the
Performance Period. 
 Section 12. 
 Annual Incentive Awards 
 12.1. Annual Incentive Awards. Subject to
and consistent with the provisions of the Plan, Annual Incentive Awards may be granted to any Eligible Person in accordance with the provisions of this Section 12. The Committee shall designate the individuals eligible to be granted an Annual
Incentive Award for a Year. In the case of an Annual Incentive Award intended to qualify for the Performance-Based Exception, such designation shall occur within the first ninety (90) days of such Year. The Committee may designate an Eligible
Person as eligible for a full Year or for a period of less than a full Year. The opportunity to be granted an Annual Incentive Award shall be evidenced by an Award Agreement or in such form as the Committee may approve, which shall specify the
individual’s Bonus Opportunity, the Performance Goals, and such other terms not inconsistent with the Plan as the Committee shall determine. 
 12.2. Determination of Amount of Annual Incentive Awards. 
 (a) Aggregate
Maximum. The Committee may establish guidelines as to the maximum aggregate amount of Annual Incentive Awards payable for any Year. 

  
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 (b) Establishment of Performance Goals and Bonus Opportunities. For any Annual
Incentive Award granted, the Committee shall establish Performance Goals for the Year (which may be the same or different for some or all Eligible Persons) and shall establish the threshold, target and maximum Bonus Opportunity for each Grantee for
the attainment of specified threshold, target and maximum Performance Goals. In the case of an Annual Incentive Award intended to qualify for the Performance-Based Exception, such designation shall occur within the first ninety (90) days of the
Year. Performance Goals and Bonus Opportunities may be weighted for different factors and measures as the Committee shall determine, and as provided under Section 4.4. 
 (c) Committee Certification and Determination of Amount of Annual Incentive Award. The Committee shall determine and certify in writing the degree of attainment of Performance Goals as soon as
administratively practicable after the end of each Year but not later than sixty (60) days after the end of such Year. The Committee shall determine an individual’s maximum Annual Incentive Award based on the level of attainment of the
Performance Goals (as certified by the Committee) and the individual’s Bonus Opportunity. The Committee may adjust the pre-established Performance Goals with respect to an Annual Incentive Award, as provided in Section 4.4. The
determination of the Committee to reduce (or not pay) an individual’s Annual Incentive Award for a Year shall not affect the maximum Annual Incentive Award payable to any other individual. No Annual Incentive Award intended to qualify for the
Performance-Based Exception shall be payable to an individual unless at least the threshold Performance Goal is attained. 
 (d)
Termination of Service. If a Grantee has a Termination of Service during the Year, the Committee may, in its absolute discretion and under such rules as the Committee may from time to time prescribe, authorize the payment of an Annual
Incentive Award to such Grantee in accordance with the foregoing provisions of this Section 12.2 and, in the absence of such determination by the Committee, the Grantee shall receive no Annual Incentive Award for such Year; provided,
however, that, to extent that an Annual Incentive Award is intended to comply with the Performance-Based Exception, the payment of such Award shall be determined based upon actual performance at the end of the Year and any payment of such
Award shall be paid in accordance with Section 12.3, unless otherwise provided in the applicable Award Agreement in a manner compliant with Code Section 162(m). 
 12.3. Time of Payment of Annual Incentive Awards. Annual Incentive Awards shall be paid as soon as administratively practicable after the Committee determines the amount of the Award payable under
Section 12 but not later than the March 15 after the end of the Year for which the Annual Incentive Award relates. Annual Incentive Awards are intended to be exempt from Code Section 409A under the short-term deferral rule.
Notwithstanding the foregoing, at the time of grant of an Annual Incentive Award, the Award Agreement may provide for a payment date that is intended to comply with Code Section 409A without causing additional taxation to the Grantee.

 12.4. Form of Payment of Annual Incentive Awards. An individual’s Annual Incentive Award for a Year shall be paid
in cash, Shares, Restricted Stock, Options or any other form of an Award, or any combination thereof, as provided in the Award Agreement or in such form as the Committee may approve. 

  
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 Section 13. 

Dividend Equivalents 
 The Committee is authorized to grant Awards of Dividend Equivalents alone or in conjunction with other Awards (other than Options and SARs), on such terms and conditions as the Committee shall determine
in accordance with the Plan and Code Section 409A. Unless otherwise provided in the Award Agreement or in Section 9 or Section 10, Dividend Equivalents shall be paid immediately when accrued and, in no event, later than March 15
of the Year following the Year in which such Dividend Equivalents accrue. Unless otherwise provided in the Award Agreement or in Section 9 or Section 10, if the Grantee incurs a Termination of Service prior to the date such Dividend
Equivalents accrue, the Grantee’s right to such Dividend Equivalents shall be immediately forfeited. Notwithstanding the foregoing, no Dividend Equivalents may be paid with respect to unvested Performance Units. 

Section 14. 
 Change in Control 
 14.1. Acceleration of Vesting. Unless otherwise
provided in the applicable Award Agreement, upon the occurrence of (a) an event satisfying the Section 2.11 definition of “Change in Control” with respect to a particular Award, and (b) a Grantee’s involuntary
Termination of Service (other than due to Cause) that occurs during the two (2)-year period immediately following such Change in Control event, such Award shall become vested, all Restrictions shall lapse and all Performance Goals shall be deemed to
be met, as applicable; provided, however, that no payment of an Award shall be accelerated to the extent such payment would cause such Award to be subject to the adverse tax consequences under Code Section 409A. The Committee may,
in its discretion, include such further provisions and limitations with respect to a Change in Control in any Award Agreement as it may deem desirable. 
 14.2. Special Treatment in the Event of a Change in Control. In order to maintain the Grantee’s rights upon the occurrence of any event satisfying the Section 2.11 definition of
“Change in Control” with respect to an Award, the Committee, as constituted before such event, may, in its sole discretion, as to any such Award, either at the time the Award is made hereunder or any time thereafter: (a) make such
adjustment to any such Award then outstanding as the Committee deems appropriate to reflect such Change in Control; and/or (b) cause any such Award then outstanding to be assumed, or new rights substituted therefor, by the acquiring or
surviving entity after such Change in Control. Additionally, in the event of any Change in Control with respect to Options and SARs, the Committee, as constituted before such Change in Control, may, in its sole discretion (except as may be otherwise
provided in the Award Agreement): (x) cancel any outstanding unexercised Options or SARs (whether or not vested) that have an Option Price or Strike Price (as applicable) that is greater than the Change in Control Price (defined below); or
(y) cancel any outstanding unexercised Options or SARs (whether or not vested) that have an Option Price or Strike Price (as applicable) that is less than or equal to the Change in Control Price in exchange for a cash payment of an amount equal
to (A) the difference between the Change in Control Price and the Option Price or Strike Price (as applicable), multiplied by (B) the total number of Shares underlying such Option or SAR that are vested and exercisable at the time of the
Change in Control. The Committee may, in its discretion, include such further provisions and limitations in any Award Agreement as it may deem desirable. The “Change in Control Price” means the lower of (X) the per-Share Fair
Market Value as of the date of the Change in Control, and (Y) the price paid per Share as part of the transaction which constitutes the Change in Control. 

  
 29 

 Section 15. 

Amendments and Termination 
 15.1. Amendment and Termination. 
 (a) Subject to Section 15.2, the
Board may at any time amend, alter, suspend, discontinue or terminate the Plan in whole or in part without the approval of the Company’s stockholders; provided that (i) any amendment shall be subject to the approval of the
Company’s stockholders if such approval is required by any federal or state law or regulation or any securities exchange or automated quotation system on which the Shares may then be listed or quoted and (ii) no Plan amendment or
termination shall accelerate the timing of any payments that constitute non-qualified deferred compensation under Code Section 409A so as to result in adverse tax consequences under Code Section 409A. 

(b) Subject to Section 15.2, the Committee may amend the terms of any Award Agreement, prospectively or retroactively, in accordance
with the terms of the Plan. 
 15.2. Previously Granted Awards. Except as otherwise specifically provided in the Plan
(including Sections 3.2(k), 3.2(n), 5.5, 15.1 and this Section 15.2) or an Award Agreement, no termination, amendment or modification of the Plan shall adversely affect in any material respect any Award previously granted under the Plan or an
Award Agreement without the written consent of the Grantee of such Award. Notwithstanding the foregoing, the Board or the Committee (as applicable) shall have the authority to amend the Plan and outstanding Awards to the extent necessary or
advisable to account for changes in applicable law, regulations, rules or other written guidance without a Grantee’s consent. 
 Section 16. 
 Beneficiary Designation 

Each Grantee under the Plan may, from time to time, name any Beneficiary or Beneficiaries (who may be named contingently or successfully)
to whom any benefit under the Plan is to be paid in case of his or her death before he or she receives any or all of such benefit. Each such designation shall revoke all prior designations by the same Grantee, shall be in a form prescribed by the
Company, and will be effective only when filed by the Grantee in writing with the Company during the Grantee’s lifetime. In the absence of any such designation, the Grantee’s estate shall be the Grantee’s Beneficiary. 

Section 17. 
 Withholding 
 17.1. Required Withholding. 

(a) The Committee in its sole discretion may provide that when taxes are to be withheld in connection with the exercise of an Option or a
SAR, upon the lapse of Restrictions 

  
 30 

 
on an Award or upon payment of any benefit or right under the Plan (the Exercise Date, the date such Restrictions lapse or such payment of any other benefit or right occurs hereinafter referred
to as the “Tax Date”), the Grantee may be required or may be permitted to elect to make payment for the withholding of federal, state and local taxes, including Social Security and Medicare (“FICA”) taxes, by one or
a combination of the following methods: 
 (i) payment of an amount in cash equal to the amount to be withheld;

 (ii) requesting the Company to withhold from those Shares that would otherwise be received upon exercise of an
Option or a SAR, upon the lapse of Restrictions on, or upon settlement of, any other Award, a number of Shares having a Fair Market Value on the Tax Date equal to the amount to be withheld; or 

(iii) withholding from any compensation otherwise due to the Grantee. 

The Committee, in its sole discretion, may provide that the maximum amount of tax withholding upon exercise of an Option or a SAR or in
connection with the settlement of any other Award to be satisfied by withholding Shares pursuant to Section 17.1(a)(iii) above shall not exceed the minimum amount of taxes, including FICA taxes, required to be withheld under federal, state and
local law. An election by Grantee under this Section 17.1(a) is irrevocable. Any fractional share amount and any additional withholding not paid by the withholding or surrender of Shares shall be paid in cash. If no timely election is made, the
Grantee must deliver cash to satisfy all tax withholding requirements, unless otherwise provided in the Award Agreement. 
 (b)
Any Grantee who makes a Disqualifying Disposition (as defined in Section 6.5(f)) or an election under Code Section 83(b) shall remit to the Company an amount sufficient to satisfy all resulting tax withholding requirements in the same
manner as set forth in Section 17.1(a). 
 (c) No Award shall be settled, whether in cash or in Shares, unless the
applicable tax withholding requirements have been met to the satisfaction of the Committee. 
 17.2. Notification under Code
Section 83(b). If the Grantee, in connection with the exercise of any Option, or the grant of Restricted Stock, makes the election permitted under Code Section 83(b) to include in such Grantee’s gross income in the year of transfer the
amounts specified in Code Section 83(b), then such Grantee shall notify the Company of such election within ten (10) days of filing the notice of the election with the Internal Revenue Service, in addition to any filing and notification
required pursuant to regulations issued under Code Section 83(b). The Committee may, in connection with the grant of an Award or at any time thereafter, prohibit a Grantee from making the election described above. 

Section 18. 
 General Provisions 
 18.1. Governing Law. The validity, construction
and effect of the Plan and any rules and regulations relating to the Plan shall be determined in accordance with the laws of the State of Delaware (regardless of its conflict of laws principles) and applicable federal laws, and without reference to
any rules of construction regarding the party responsible for the drafting hereof. Venue shall be in, and jurisdiction of, the State or Federal Court (as may be appropriate) nearest to the Company’s then headquarters. 

  
 31 

 18.2. Severability. If any provision of the Plan or any Award Agreement is or becomes
or is deemed to be invalid, illegal or unenforceable in any jurisdiction, or as to any Person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended
to conform to applicable laws, or if it cannot be so construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, it shall be stricken and the remainder of the Plan and any such
Award shall remain in full force and effect. 
 18.3. Successors. All obligations of the Company under the Plan with
respect to Awards granted hereunder shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the
business and/or assets of the Company. 
 18.4. Requirements of Law. The granting of Awards and the delivery of Shares
under the Plan shall be subject to all applicable laws, rules and regulations, and to such approvals by any governmental agencies or national securities exchanges or markets as may be required. Notwithstanding any provision of the Plan or any Award
Agreement, Grantees shall not be entitled to exercise, or receive benefits under, any Award, and the Company (or any Subsidiary) shall not be obligated to deliver any Shares or deliver benefits to a Grantee, if such exercise or delivery would
constitute a violation by the Grantee, the Company or a Subsidiary of any applicable law or regulation. 
 18.5. Securities
Law Compliance. If the Committee deems it necessary to comply with any applicable securities law, or the requirements of any securities exchange or market upon which Shares may be listed, the Committee may impose any restriction on Awards or
Shares acquired pursuant to Awards under the Plan as it may deem advisable. All evidence of Share ownership delivered pursuant to any Award or the exercise thereof shall be subject to such stop transfer orders and other restrictions as the Committee
may deem advisable under the rules, regulations or other requirements of the SEC, any securities exchange or market upon which Shares are then listed, and any applicable securities law. If so requested by the Company, the Grantee shall make a
written representation and warranty to the Company that he or she will not sell or offer to sell any Shares unless a registration statement shall be in effect with respect to such Shares under the Securities Act of 1933, as amended, and any
applicable state securities law or unless he or she shall have furnished to the Company an opinion of counsel, in form and substance satisfactory to the Company, that such registration is not required. 

If the Committee determines that the exercise or non-forfeitability of, or delivery of benefits pursuant to, any Award would violate any
applicable provision of securities laws or the listing requirements of any national securities exchange or national market system on which any of the Company’s equity securities are listed, then the Committee may postpone any such exercise,
non-forfeitability or delivery to comply with all such provisions at the earliest practicable date. 

  
 32 

 18.6. Code Section 409A. To the extent applicable and notwithstanding any other
provision of the Plan, the Plan and Award Agreements hereunder shall be administered, operated and interpreted in accordance with Code Section 409A, including any regulations or other guidance that may be issued after the date on which the
Board approves the Plan; provided, however, that, in the event that the Committee determines that any amounts payable hereunder may be taxable to a Grantee under Code Section 409A prior to the payment and/or delivery to such
Grantee of such amount, the Company may (a) adopt such amendments to the Plan and related Award, and appropriate policies and procedures, including amendments and policies with retroactive effect, that the Committee determines necessary or
appropriate to preserve the intended tax treatment of the benefits provided by the Plan and Awards hereunder, and/or (b) take such other actions as the Committee determines necessary or appropriate to comply with or exempt the Plan and/or
Awards from the requirements of Code Section 409A. The Company and its Subsidiaries make no guarantees to any Person regarding the tax treatment of Awards or payments made under the Plan, and, notwithstanding the above provisions and any
agreement or understanding to the contrary, if any Award, payments or other amounts due to a Grantee (or his or her beneficiaries, as applicable) results in, or causes in any manner, the application of any adverse tax consequence under Code
Section 409A or otherwise to be imposed, then the Grantee (or his or her Beneficiaries, as applicable) shall be solely liable for the payment of, and the Company and its Subsidiaries shall have no obligation or liability to pay or reimburse
(either directly or otherwise) the Grantee (or his or her Beneficiaries, as applicable) for, any such adverse tax consequences. In the case of any Deferred Compensation Award (in addition to Deferred Stock), the provisions of Section 10.4
relating to permitted times of settlement shall apply to such Award. If any Deferred Compensation Award is payable to a “specified employee” (within the meaning of Treasury Regulation Section 1.409A-1(i)), then such payment, to the
extent payable due to the Grantee’s Termination of Service and not otherwise exempt from Code Section 409A, shall not be paid before the date that is six (6) months after the date of such Termination of Service (or, if earlier, such
Grantee’s death). 
 18.7. Mitigation of Excise Tax. Subject to the last sentence of this Section 18.7, if any
payment or right accruing to a Grantee under the Plan (without the application of this Section 18.7), either alone or together with other payments or rights accruing to the Grantee from an Employer (“Total Payments”), would
constitute a “parachute payment” (as defined in Code Section 280G), such payment or right shall be reduced to the largest amount or greatest right that will result in no portion of the amount payable or right accruing under the Plan
being subject to an excise tax under Code Section 4999 or being disallowed as a deduction under Code Section 280G. The determination of whether any reduction in the rights or payments under the Plan is to apply shall be made by the
Committee in good faith after consultation with the Grantee, and such determination shall be conclusive and binding on the Grantee. The Grantee shall cooperate in good faith with the Committee in making such determination and providing the necessary
information for this purpose. Unless otherwise provided in an Award Agreement or in an Employment Agreement, the foregoing provisions of this Section 18.7 shall apply with respect to any person only if, after reduction for any applicable
federal excise tax imposed by Code Section 4999 and federal income tax imposed by the Code, the Total Payments accruing to such person would be less than the amount of the Total Payments as reduced, if applicable, under the foregoing provisions
of the Plan and after reduction for only federal income taxes. 

  
 33 

 18.8. No Rights as a Stockholder. No Grantee shall have any rights as a stockholder
of the Company with respect to the Shares (except as provided in Section 8.7 with respect to Restricted Stock) that may be deliverable upon exercise or payment of such Award until such Shares have been delivered to him or her. 

18.9. Awards Not Taken into Account for Other Benefits. Awards shall be special incentive payments to the Grantee and shall not be
taken into account in computing the amount of salary or compensation of the Grantee for purposes of determining any pension, retirement, death or other benefit under (a) any pension, retirement, profit-sharing, bonus, insurance or other
employee benefit plan of an Employer, except as such plan shall otherwise expressly provide, or (b) any Employment Agreement between an Employer and the Grantee, except as such Employment Agreement shall otherwise expressly provide. 

18.10. Employment Agreement Supersedes Award Agreement. In the event a Grantee is a party to an Employment Agreement with the
Company or a Subsidiary that provides for vesting or extended exercisability of equity compensation Awards on terms more favorable to the Grantee than the Grantee’s Award Agreement or this Plan, the Employment Agreement shall be controlling;
provided, however, that (a) if the Grantee is a Section 16 Person, any terms in the Employment Agreement requiring approval of the Board, its compensation committee, or the Company’s stockholders in order for an
exemption from Section 16(b) of the Exchange Act to be available shall have been approved by the Board, its compensation committee, or the stockholders, as applicable, and (b) the Employment Agreement shall not be controlling to the extent
the Grantee and Grantee’s Employer agree it shall not be controlling, and (c) an Employment Agreement or modification to an Employment Agreement shall be deemed to modify the terms of any pre-existing Award only if the terms of the
Employment Agreement expressly so provide. 
 18.11. Non-Exclusivity of Plan. Neither the adoption of the Plan by the
Board nor its submission to the stockholders of the Company for approval shall be construed as creating any limitations on the power of the Board to adopt such other compensatory arrangements for employees as it may deem desirable. 

18.12. No Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of
any kind or a fiduciary relationship between the Company or any Subsidiary and a Grantee or any other Person. To the extent that any Person acquires a right to receive payments from the Company or any Subsidiary pursuant to an Award, such right
shall be no greater than the right of any unsecured general creditor of the Company or any Subsidiary. 
 18.13. No Right to
Continued Employment or Awards. No employee shall have the right to be selected to receive an Award under this Plan or, having been so selected, to be selected to receive a future Award. The grant of an Award shall not be construed as giving a
Grantee the right to be retained in the employ of the Company or any Subsidiary or to be retained as a director of or consultant to the Company or any Subsidiary. Further, the Company or a Subsidiary may at any time terminate the employment of a
Grantee free from any liability, or any claim under the Plan, unless otherwise expressly provided in the Plan, any Award Agreement or an Employment Agreement, as applicable. 

  
 34 

 18.14. Military Service. Awards shall be administered in accordance with Code
Section 414(u) and the Uniformed Services Employment and Reemployment Rights Act of 1994. 
 18.15. Construction.
The following rules of construction will apply to the Plan: (a) the word “or” is disjunctive but not necessarily exclusive and (b) words in the singular include the plural, words in the plural include the singular, and words in
the neuter gender include the masculine and feminine genders and words in the masculine or feminine genders include the neuter gender. The headings of sections and subsections are included solely for convenience of reference, and if there is any
conflict between such headings and the text of this Plan, the text shall control. All references to Sections herein are intended to be references to sections of the Plan, unless otherwise indicated. 

18.16. No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the Plan or any Award, and the
Committee shall determine whether cash, other securities, or other property shall be paid or transferred in lieu of any fractional Shares, or whether such fractional Shares or any rights thereto shall be canceled, terminated or otherwise eliminated.

 18.17. Plan Document Controls. This Plan and each Award Agreement constitute the entire agreement with respect to the
subject matter hereof and thereof; provided, however, that in the event of any inconsistency between the Plan and such Award Agreement, the terms and conditions of the Plan shall control. 

  
 35EX-10.2

 Exhibit 10.2 

Addendum to Manufacturing Agreement 
 Contract No.: AB20110927 
 This first Addendum to the Manufacturing Agreement (as hereinafter
defined) (“Addendum”) effective as of 16 January 2012 (“Effective Date”), is made by and between Aruba Networks Inc. (“Aruba”) and SerComm Corporation (“SerComm”) (each a “Party”,
collectively, the “Parties”). 
 WHEREAS, Aruba and SerComm entered into that certain Manufacturing Agreement dated 1 November
2008 (“Manufacturing Agreement”), and 
 WHEREAS, SerNet (Suzhou) Technologies Corporation (“SerNet”), a wholly owned
subsidiary of SerComm, manufactures and sells Products to SerComm. Pursuant to the Manufacturing Agreement, SerComm sells the Products to Aruba, and then Aruba exports the Products to Aruba Technology (China) Co. Ltd. (hereinafter “Aruba
China”), a wholly owned subsidiary of Aruba, and 
 WHEREAS, for reasons of business efficiency, the parties have agreed that certain
Products which need to be examined and/or repaired (“RMA Product”) shall now be returned directly from Aruba China to SerNet for examination and repair, and 
 WHEREAS, the Parties have agreed to submit the attached Four-Party Transaction Agreement to the appropriate Chinese customs authorities on the Effective Date and thereafter a revised Four-Party
Transaction Agreement on each anniversary of the Effective Date to facilitate the shipment of the RMA Product, and 
 WHEREAS, subject to the
terms and conditions of the Manufacturing Agreement, Aruba and SerComm wish to set forth in this Addendum certain variations to the RMA process in respect of such RMA Product as specified hereunder. 

NOW, THEREFORE, in consideration of the premises and obligations contained herein, it is hereby agreed as follows: 

 

	 	A.	Unless otherwise defined herein, capitalized terms used in this Addendum shall have the same meaning as set forth in the Manufacturing Agreement.

  

	 	B.	This Addendum shall be entirely subject to the terms and conditions of the Manufacturing Agreement, except where expressly varied herein. Except as so varied, the
Manufacturing Agreement remains in full force and effect according to its terms. 

	 	C.	The Four Party Transaction Agreement attached hereto is intended to facilitate the shipment of the RMA Product through the appropriate Chinese customs authorities only
and is entirely subject to the terms and conditions of this Addendum. In the event of any conflict the terms of this Addendum shall prevail. 

  

	 	D.	Special Terms: 

  

	 	1.	The Parties agree that the RMA Products as set out in the Four Party Transaction Agreement (as may be updated from time to time) will be returned for examination or
repair subject to this Addendum. 

  

	 	2.	The Parties agree that the RMA Product shall be repaired or replaced in accordance with the provisions of the Manufacturing Agreement. 

 

	 	3.	The Parties agree that the Place of Delivery is:26 XINGHAI STREET, SUZHOU INDUSTRIAL PARK JIANGSU, CHINA. 

 

	 	4.	The Parties agree that the quality requirements in respect of such RMA Product shall be those set forth in the Manufacturing Agreement. 

 

	 	5.	Subject always to compliance with applicable laws and export regulations, the Parties agree that Aruba China shall deliver the RMA Product to the Place of Delivery as
designated by SerNet and following examination and repair of the Product, Sernet shall return such RMA Product to the place of delivery notified by Aruba China. Any repair fees (if applicable) shall be paid by Aruba to Sercomm, and following such
payment, Sercomm shall remit the repair fee directly to SerNet. 

  

	 	6.	Except as provided herein, all other terms and conditions of the Manufacturing Agreement shall remain in full force and effect. 

IN WITNESS WHEREOF, the Parties have executed this Addendum as of the Effective Date. 

							
	ARUBA NETWORKS INC.	  	SerComm CORPORATION
				
	By:	 	 /s/ Alexa King
	  	By:	  	 /s/ Charles Chu

				
	Name:	 	 Alexa King
	  	Name:	  	 Charles Chu

				
	Title:	 	 General Counsel
	  	Title:	  	 Sales VP

				
	Date:	 	 2/13/2012
	  	Date:	  	 2012.01.20

				
		 	 Aruba Networks, Inc
 1344
Crossman Ave.
 Sunnyvale, CA 94089
	  		  	

 

 
 Four-Party Transaction Agreement 

合同编号/Contract No.:AB20110927 

签订日期/Effective Date:2012.01.16 

合同签订人/Parties of the Agreement 

甲方/Party
A:中怡(苏州)科技有限公司/SerNet (Suzhou) Technologies Corporation 
 乙方/Party B:中磊電子股份有限公司/SerComm Corporation 

丙方/Party C:安移通網路科技(中國)
有限公司 / Aruba Networks Technology (China) Co., Ltd. 
 丁方/Party
D: Aruba Networks INC. 
 合同内容/Content of the Agreement 

四方经友好协商,达成一致协议如下/Per
 amicable negotiation, the Parties hereby agree as follows: 

	 	 1.
	 出货品名/Product
Name:无线网络访问接入点 / wireless access point 

 (海关编码/Custom No.:8517629900) 

	 	 2.
	 数量/Quantity:3000SETS 

	 	 3.
	 单价/Price:US$80.653 

	 	 4.
	 维修费用/Repair Fee:
依约定之费用/As agreed by the Parties. 

	 	 5.
	 .四方关系/Relationship of the Parties:

丁方向海外企业乙方购买由甲方以进料加工方式生产的产品,甲方负责加工生产并销售给乙方,后由丁方向乙方购买。由于市场需求,由丁方出口至其中国关联企业丙方进行销售,
 现因质量问题需退回甲方进行检测及维修。/Party D purchases from Party B the Product manufactured by Party A with material consigned.
Party A shall be responsible for the manufacture and sale of the completed Product to Party B and then Party D will purchase such Product from Party B. Based on market requirements, Party D will export such Product to its affiliate company in China,
Party C. Now due to quality issues, such Product shall be returned to Party A for examination and repair. 

	 	 6.
	 退运地址/Place of
Delivery:中国江苏省苏州工业园新海街26号 

 / 26 XINGHAI STREET,SUZHOU INDUSTRIAL PARK JIANGSU, CHINA 

	 	 7.
	 质量要求/Quality
Requirement:依约定之标准/As agreed by the Parties. 

	 	 8.
	
退运方式/Delivery:丙方将质量有问题产品自行交货到甲方指定地点,于检修完成后,甲方将检修后产品直接送交至丙方指定地點。维修费用由丁方支付给乙方,乙方再支付给甲方;相关手续由四方进行协商后依法处理。/Party
 C shall deliver such defective Product to the place designated by Party A and then after completing the examination and repair, Party A shall directly deliver such Product to the place designated by Party C. Repair fees shall be paid by Party D to
Party A and then Party B shall pay Party A. The related process will be negotiated by the Parties in accordance with applicable laws. 

  
 

 

甲方:中怡(苏州)科技有限公司
Party A:SerNet (Suzhou) Technologies Corporation 签章/ Signature: [Company chop of SerNet (Suzhou) Technologies Corporation] 乙方:中磊電子股份有限公司
Party B: SerComm Corporation 签章/Signature: [Company chop of SerComm Corporation] 丙方:安移通網路科技(中國) 有限公司 Party C: Aruba
Networks Technology (China) Co., Ltd. 签章/Signature: /s/ Alexa KingParty D: Aruba Networks INC. 签章/Signature: /s/ Alexa King Aruba Networks, Inc. Alexa King 1344 Crossman Ave. General Counsel Sunnyvale, CA
94089 本合同一式四份,由四方各持一份备查。 This Agreement will be executed in four counterparts, each of which will be kept by each party for
reference.

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