Document:

EX-10.2

 Exhibit 10.2 

QLOGIC CORPORATION 

1998 EMPLOYEE STOCK PURCHASE PLAN 

(Amended and Restated Effective May 22, 2014) 

This 1998 EMPLOYEE STOCK PURCHASE PLAN (the “Plan”) was established by QLOGIC CORPORATION, a Delaware corporation, on
the 9th day of April, 1998 and became effective on the “Effective Date.” The Plan is hereby amended and restated in its entirety as set forth herein, effective May 22, 2014, and
except as otherwise provided by the Administrator, the terms and provisions of the Plan as set forth herein shall apply to each Offering Period that commences after such date. For the terms of any Offering Period that commenced prior to such date,
please see the version of the Plan document in effect for that Offering Period. 
 ARTICLE 1 

PURPOSE OF THE PLAN 

1.1 Purpose. The Company has determined that it is in its best interest to provide incentives to
attract and retain employees and to increase employee morale by providing a program through which employees of the Company, and of such of the Company’s Subsidiaries as the Company’s Board of Directors may from time to time designate (each
a “Designated Subsidiary,” and collectively, “Designated Subsidiaries”) may acquire a proprietary interest in the Company through the purchase of shares of the common stock of the Company (“Company Stock”). The Plan is
hereby established by the Company to permit employees to subscribe for and purchase directly from the Company shares of the Company Stock at a discount from the market price, and to pay the purchase price in installments by payroll deductions. The
Plan is intended to qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code of 1986, as amended from time to time (the “Code”). The provisions of the Plan are to be construed in a manner
consistent with the requirements of Section 423 of the Code. The Plan is not intended to be an employee benefit plan under the Employee Retirement Income Security Act of 1974, and therefore is not required to comply with that Act. 

 ARTICLE 2 

DEFINITIONS 

2.1 Administrator. “Administrator” shall refer to the committee of the Board of Directors
of the Company appointed to administer the Plan, and if no such committee has been appointed, the term Administrator shall mean the Board of Directors.  

2.2 Company. “Company” means QLogic Corporation, a Delaware corporation. 

2.3 Compensation. “Compensation” includes salary, annual bonus/incentive paid in cash,
annual profit sharing, overtime, lead premium, commissions and shift differential, but expressly excludes other forms of compensation such as relocation, housing, car allowances, phone allowances, sign-on bonuses, referral bonuses and non-cash
incentives. 
 2.4 Effective Date. “Effective Date” means November 2, 1998. 

 2.5 Employee. “Employee” means each person currently
employed by the Company or any of its Designated Subsidiaries. 
 2.6 Grant Date. “Grant Date” means
the first day of each Offering Period under the Plan. 
 2.7 Offering Period.
“Offering Period” means the period of approximately twelve (12) consecutive months commencing on each Grant Date as provided in Article 4; provided, however, that the Administrator may declare, as it deems appropriate and in advance
of the applicable Offering Period, a shorter (not to be less than three months) Offering Period or a longer (not to exceed 27 months) Offering Period.  

2.8 5% Owner. “5% Owner” means an Employee who, immediately after the grant of any rights
under the Plan, would own stock (within the meaning of Section 423(b)(3) of the Code) possessing 5% or more of the total combined voting power or value of all classes of stock of the Company, or of any Parent, or of any Subsidiary. For purposes
of this Section, the ownership attribution rules of Section 424(d) of the Code shall apply, and stock which the Employee may purchase under outstanding options shall be treated as stock owned by the Employee. 

2.9 Parent. “Parent” means any corporation (other than the Company) in an unbroken chain
of corporations ending with the Company in which each corporation (other than the Company) owns shares possessing 50% or more of the total combined voting power of all classes of shares in one or more of the other corporations in the chain.

 2.10 Participant. “Participant” means an Employee who has satisfied the
eligibility requirements of Section 3.1 and has become a participant in the Plan in accordance with Section 3.2. 

2.11 Purchase Date. “Purchase Date” means the last day of each Purchase Period. 

2.12 Purchase Period. “Purchase Period” has the meaning given to such term in Article 4. 

2.13 Subsidiary. “Subsidiary” means any corporation (other than the Company) in an
unbroken chain of corporations (beginning with the Company) in which each corporation (other than the last corporation) owns shares possessing 50% or more of the total combined voting power of all classes of shares in one or more of the other
corporations in the chain. 
 ARTICLE 3 

ELIGIBILITY AND PARTICIPATION 

3.1 Eligibility. Each Employee of the Company, or any Designated Subsidiary, whose customary
employment is for more than 20 hours per week and more than five months in a calendar year may become a Participant in the Plan on the Grant Date coincident with or next following the Employee’s satisfaction of the requirements of Section
3.2. 
 3.2 Participation. An Employee who has satisfied the eligibility requirements of Section
3.1 may become a Participant in the Plan upon his completion and delivery to the Administrator of the Company of a stock purchase agreement provided by the Company (the “Stock 

  
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Purchase Agreement”) authorizing payroll deductions. Payroll deductions for a Participant shall commence on the payroll pay date on or after the Grant Date coincident with or next following
the filing of the Participant’s Stock Purchase Agreement and shall remain in effect until revoked by the Participant by the filing of a notice of withdrawal from the Plan under Article 8 or by the filing of a new Stock Purchase Agreement
providing for a change in the Participant’s payroll deduction rate under Section 5.2. 
 3.3 Special
Rules. Under no circumstances shall: 
 a. an option to purchase Company Stock under the Plan be granted to a Participant if the
exercise of such option would cause the Participant to be a 5% Owner; 
 b. an option to purchase Company Stock under the Plan be granted to
a Participant if such option would cause the Participant to have rights to purchase Company Stock under the Plan (and under any other employee stock purchase plan of the Company, any Parent or any Subsidiary which is qualified under Section 423
of the Code) which accrue at a rate which exceeds $25,000 of the fair market value of the Company Stock (determined at the time the right to purchase such Company Stock is granted, before giving effect to any discounted purchase price under any such
plan) for each calendar year in which such right is outstanding at any time, as this rule is applied under Section 423 of the Code and the rules and regulations promulgated thereunder; or 

c. the number of shares of Company Stock either purchasable by a Participant in any Offering Period exceed 10,000 shares or purchasable by a
Participant in any calendar year exceed 3,500 shares, in each case subject to periodic adjustments under Section 10.4, unless the Administrator provides in advance of a particular Offering Period or calendar year that a different individual
share limit shall apply as to that Offering Period or calendar year. 
 For purposes of the foregoing, a right to purchase Company Stock accrues when it
first becomes exercisable during the calendar year. If any amount which exceeds the limits set forth in this Section 3.3 remains in the Participant’s Account after the exercise of the Participant’s option on the Purchase Date, such
amount shall be refunded to the Participant as soon as administratively practicable after such date. 
 ARTICLE 4 

OFFERING AND PURCHASE PERIODS 

4.1 Offering Periods. Unless otherwise specified in advance by the Administrator, each Offering Period hereunder
shall be of approximately twelve (12) months’ duration, and, subject to adjustment pursuant to Section 11.5, a new Offering Period shall commence on each September 1, December 1, March 1 and June 1
(starting with September 1, 2014) such that more than one Offering Period may be in effect at any one time; provided, however, that no Employee may be a Participant in, or hold an outstanding option with respect to, more than one Offering
Period at any one time. In the event that any Purchase Date during an Offering Period coincides with the first day of a Purchase Period and the Fair Market Value (as defined below) of the Company Stock on such Purchase Date is lower than the Fair
Market Value of the Company Stock on the Grant Date of that particular Offering Period, that Offering Period will terminate on such Purchase Date, and each Participant in such terminated Offering Period will be automatically enrolled in the new
Offering Period that 

  
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commences on the Grant Date that occurs concurrently with such Purchase Date (in each case, immediately after giving effect to Section 7.1 for that Purchase Date). In the event that a
Purchase Date during an Offering Period does not coincide with the first day of a Purchase Period and the Fair Market Value of the Company Stock on the first day of the Purchase Period immediately following such Purchase Date is lower than the Fair
Market Value of the Company Stock on the Grant Date of that particular Offering Period, that Offering Period will be deemed to have terminated as of such Purchase Date (after giving effect to Section 7.1 for that Purchase Date) and each
Participant in such terminated Offering Period will be automatically enrolled in the new Offering Period that commences on the Grant Date that immediately follows such Purchase Date. Each option shall become effective on the Grant Date of the
Offering Period with respect to which the option is granted. The term of each option shall be the duration of the related Offering Period and shall end on the final Purchase Date of that Offering Period. Offering Periods shall continue until this
Plan is terminated in accordance with Section 10.5 or 11.1, or, if earlier, until no shares of Company Stock remain available for options pursuant to Section 10.1. 

4.2 Purchase Periods. Unless otherwise specified by the Administrator in advance of a particular
Offering Period, each Offering Period will consist of four (4) Purchase Periods, and each Purchase Period will be of approximately three (3) months’ duration. Purchase Periods shall commence on each of
September 1, December 1, March 1 and June 1 and shall end on the last day of the immediately following November, February, May and August, respectively and in each case subject to adjustment pursuant to
Section 11.5.  
 ARTICLE 5 

PAYROLL DEDUCTIONS 

5.1 Participant Election. Upon completion of the Stock Purchase Agreement, each Participant shall
designate the amount of payroll deductions to be made from his or her paycheck to purchase Company Stock under the Plan. The amount of payroll deductions shall be designated in whole percentages of Compensation, not to exceed a maximum of 10%, which
maximum percentage may be increased or decreased from time to time in the discretion of the Administrator effective with the Purchase Period next commencing after the date of such increase or decrease, but in no event shall the maximum amount be
increased to an amount in excess of 15% of Compensation. The amount so designated upon the Stock Purchase Agreement shall be effective for the next Purchase Period that commences after the Company’s receipt of such election (subject to any
deadline established by the Administrator for making any such election for that Purchase Period) and, unless otherwise expressly provided by the Administrator, all subsequent Purchase Periods until the Participant is no longer eligible to
participate in the Plan or terminates or alters such Stock Purchase Agreement in accordance with Section 5.2 below. 

5.2 Changes in Election. Any Participant may change any election (increase or decrease the rate of payroll
deductions) under this Section one time during any Purchase Period by completing and delivering to the Administrator a new Stock Purchase Agreement setting forth the desired change at least 15 days prior to the end of the Purchase Period. A
Participant may terminate participation in the Plan at any time prior to the close of an Offering Period as provided in Article 8. A Participant may also terminate payroll deductions and have accumulated deductions for the then current Purchase
Period applied to the purchase of Company Stock as of the Purchase Date for that Purchase Period by completing and delivering to the Administrator a new Stock Purchase Agreement setting forth the desired change. Any change under this Section shall
become effective on the next payroll period (to the extent practical under the Company’s payroll practices) following the delivery of the new Stock Purchase Agreement. 

  
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 5.3 Participant Accounts. The Company shall establish
and maintain a separate account (“Account”) for each Participant. The amount of each Participant’s payroll deductions shall be credited to his Account. No interest will be paid or allowed on amounts credited to a Participant’s
Account. All payroll deductions received by the Company under the Plan are general corporate assets of the Company and may be used by the Company for any corporate purpose. The Company is not obligated to segregate such payroll deductions. 

 ARTICLE 6 

GRANT OF OPTION 

6.1 Option to Purchase Shares. On each Grant Date, each Participant shall be granted an option to
purchase at the price determined under Section 6.2 that number of whole shares of Company Stock that can be purchased or issued by the Company based upon that price with the amounts held in his Account, subject to the limits set forth in
Section 3.3.  
 6.2 Purchase Price. The purchase price for any Purchase Period shall be the
lesser of: 
 a. 85% of the Fair Market Value of Company Stock on the Grant Date for the Offering Period to which such Purchase Period
relates; or 
 b. 85% of the Fair Market Value of Company Stock on the Purchase Date for such Purchase Period. 

6.3 Fair Market Value. “Fair Market Value” shall mean the value of one share of Company Stock,
determined as follows: 
 a. If the Company Stock is then listed or admitted to trading on a national securities exchange, the Fair Market
Value shall be the closing sale price of the Company Stock on the date of valuation on the principal national securities exchange on which the Company Stock is then listed or admitted to trading (and pursuant to Section 11.5, such valuation
date shall always fall on a business day), or, if there is no trading of the Company Stock on such business day, the Fair Market Value shall be the closing sale price of the Company Stock on such principal national securities exchange on the next
preceding day on which there was trading in the Company Stock. 
 b. If the Company Stock is not listed or admitted to trading on a national
securities exchange on the valuation date, the Fair Market Value shall be determined by the Administrator in good faith using any reasonable method of valuation, which determination shall be conclusive and binding on all interested parties. 

  
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 ARTICLE 7 

PURCHASE OF STOCK 

7.1 Exercise of Option. 

a. On each Purchase Date, the Participant will be deemed to exercise the option granted for the applicable Offering Period. Notwithstanding
the above, a Participant may direct the Company not to purchase Company Stock on the Purchase Date in accordance with Section 8.1, in which case any amount in the Participant’s Account shall be refunded to the Participant as provided in
Section 8.1. 
 b. Upon exercise of an option, the Plan shall purchase on behalf of each Participant the maximum number of whole shares
of Company Stock subject to such Participant’s option at the option price determined under Section 6.2 above as can be purchased with the amounts held in each Participant’s Account. Any amounts remaining in a Participant’s
Account as a result of the requirement that no fractional shares may be purchased shall be held in the Participant’s Account and carried forward to the next Purchase Period. 

7.2 Delivery of Company Stock. The time of issuance and delivery of the shares may be postponed for
such period as may be necessary to comply with the registration requirements under the Securities Act of 1933, as amended, the listing requirements of any securities exchange on which the Company Stock may then be listed, or the requirements under
other laws or regulations applicable to the issuance or sale of such shares. 
 ARTICLE 8 

WITHDRAWAL 

8.1 In Service Withdrawals. At any time prior to the final Purchase Date of an Offering Period
(subject to any deadline the Administrator may establish for the relevant Offering Period prior to the Grant Date for such Offering Period), any Participant may withdraw the amounts held in his Account by executing and delivering to the
Administrator a written notice of withdrawal on the form provided by the Company. In such a case, the entire balance of the Participant’s Account shall be paid to the Participant, without interest, as soon as is practicable. Upon such
notification, the Participant shall cease to participate in the Plan for the remainder of the Offering Period in which the notice is given. A reduction in contributions to zero during any Offering Period with an instruction to hold the funds in a
Participant’s Account to purchase shares on the next Purchase Date following such reduction as contemplated by Section 5.2 shall not be deemed a withdrawal. Any Employee who has withdrawn under this Section shall be excluded from
participation in the Plan for the remainder of the Offering Period in which the withdrawal occurred and the next succeeding Offering Period, but may then be reinstated as a Participant thereafter by executing and delivering a new Stock Purchase
Agreement to the Administrator. 
 8.2 Termination of Employment. 

a. In the event that a Participant’s employment with the Company terminates for any reason, the Participant shall cease to participate in
the Plan on the date of termination. As soon as is practical following the date of termination, the entire balance of the Participant’s Account shall 

  
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be paid to the Participant or his beneficiary in cash, without interest. For purposes of the Plan, if a Designated Subsidiary ceases to be a Subsidiary of the Company, each person employed by
that Designated Subsidiary will be deemed to have terminated employment for purposes of the Plan, unless the person continues as an employee of the Company or another Designated Subsidiary. 

b. A Participant may file a written designation of a beneficiary who is to receive any shares of Company Stock purchased under the Plan or any
cash from the Participant’s Account in the event of his or her death subsequent to a Purchase Date, but prior to delivery of such shares or cash. In addition, a Participant may file a written designation of a beneficiary who is to receive any
cash from the Participant’s Account under the Plan in the event of his death prior to a Purchase Date under paragraph (a) above. If a Participant is married and the designated beneficiary is not solely his or her spouse, spousal consent
shall be required for such designation to be effective unless it is established (to the satisfaction of the Administrator or its delegate) that there is no spouse or that the spouse cannot be located. 

c. Any beneficiary designation under paragraph (b) above may be changed by the Participant at any time by written notice. In the event of
the death of a Participant, the Administrator may rely upon the most recent beneficiary designation it has on file as being the appropriate beneficiary. In the event of the death of a Participant where no valid beneficiary designation exists or the
beneficiary has predeceased the Participant, the Administrator shall deliver any cash or shares of Company Stock to the executor or administrator of the estate of the Participant, or if no such executor or administrator has been appointed to the
knowledge of the Administrator, the Administrator, in its sole discretion, may deliver such shares of Company Stock or cash to the spouse or any one or more dependents or relatives of the Participant, or if no spouse, dependent or relative is known
to the Administrator, then to such other person as the Administrator may designate. 
 ARTICLE 9 

PLAN ADMINISTRATION 

9.1 Plan Administration. 

a. Authority to control and manage the operation and administration of the Plan shall be vested in the Board of Directors (the
“Board”) for the Company, or a committee (“Committee”) thereof. Members of the Committee may be appointed from time to time by, and shall serve at the pleasure of, the Board. As used herein, the term “Administrator”
shall mean the Board or, with respect to any matter as to which responsibility has been delegated to the Committee, the term Administrator shall mean the Committee. The initial Administrator of the Plan shall be the Compensation Committee of the
Board of Directors. The Administrator shall have all powers necessary to supervise the administration of the Plan and control its operations. 

b. In addition to any powers and authority conferred on the Administrator elsewhere in the Plan or by law, the Administrator shall have the
following powers and authority: 
 (i) To designate agents to carry out responsibilities relating to the Plan; 

(ii) To administer, interpret, construe and apply this Plan and to answer all questions which may arise or which may be raised under this
Plan by a Participant, his or her beneficiary or any other person whatsoever; 

  
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 (iii) To establish rules and procedures from time to time for the conduct of its business and
for the administration and effectuation of its responsibilities under the Plan; and 
 (iv) To perform or cause to be performed such
further acts as it may deem to be necessary, appropriate, or convenient for the operation of the Plan. 
 c. Any action taken in good faith
by the Administrator in the exercise of authority conferred upon it by this Plan shall be conclusive and binding upon a Participant and his beneficiaries. All discretionary powers conferred upon the Administrator shall be absolute. 

9.2 Limitation on Liability. No Employee of the Company nor member of the Board or Committee shall
be subject to any liability with respect to his or her duties under the Plan unless the person acts fraudulently or in bad faith. To the extent permitted by law, the Company shall indemnify each member of the Board or Committee, and any other
Employee of the Company with duties under the Plan who was or is a party, or is threatened to be made a party, to any threatened, pending or completed proceeding, whether civil, criminal, administrative, or investigative, by reason of the
person’s conduct in the performance of his duties under the Plan. 
 9.3
Sub-Plans. The Administrator has discretion to adopt any rules regarding administration of the Plan to conform to local laws. Without limiting the generality of the foregoing, the Administrator is specifically authorized to
adopt rules and procedures regarding handling of payroll deductions, payment of interest and handling of share certificates which vary according to local requirements. The Administrator has the authority to suspend or limit participation in the Plan
by employees of any particular Subsidiary of the Company for any reason, including administrative or economic reasons. The Administrator may also adopt rules, procedures or sub-plans applicable to particular Subsidiaries or locations, which
sub-plans may be designed to be outside the scope of Section 423 of the Code. 
 9.4
Reliance on Experts Delegation. In making any determination or in taking or not taking any action under the Plan, the Committee or the Board, as the case may be, may obtain and may rely upon the advice
of experts, including professional advisors to the Company. No director, officer or agent of the Company or any Designated Subsidiary shall be liable for any such action or determination taken or made or omitted in good faith. The Administrator may
delegate ministerial, non-discretionary functions to individuals who are officers or employees of the Company or a Designated Subsidiary. 

ARTICLE 10 
 COMPANY
STOCK 
 10.1 Limitations on Purchase of Shares. The maximum number of shares of Company
Stock that shall be made available for sale under the Plan shall be 9,000,000 shares, subject to adjustment under Section 10.4 below. The shares of Company Stock to be sold to Participants under the Plan will be issued by the Company. If the
total number of shares of Company Stock that would otherwise be issuable pursuant to rights granted pursuant to Section 6.1 of the Plan on any Purchase Date exceeds the number of shares then available under the Plan, the Administrator shall
make a pro rata allocation of the shares remaining available in as uniform and equitable manner as is practicable, and the Plan and each Offering Period then in progress shall terminate on such date. In such event, the Administrator shall give
written notice of such reduction of the number of shares to each Participant affected thereby and any unused payroll deductions shall be returned to such Participant.  

  
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 10.2 Voting Company Stock. The Participant will have no
interest or voting right in shares to be purchased under Section 6.1 of the Plan until such shares have been actually delivered to and held of record by the Participant. 

10.3 Registration of Company Stock. Shares to be delivered to a Participant under the Plan will be
registered in the name of the Participant unless designated otherwise by the Participant.  
 10.4
Changes in Capitalization of the Company. Subject to any required action by the stockholders of the Company, the number of shares of Company Stock covered by each right under the Plan which has not yet been exercised and the
number of shares of Company Stock which have been authorized for issuance under the Plan but have not yet been placed under rights or which have been returned to the Plan upon the cancellation of a right, as well as the purchase price per share of
Company Stock covered by each right under the Plan which has not yet been exercised, shall be proportionately adjusted for any increase or decrease in the number of issued shares of Company Stock resulting from a stock split, stock dividend,
spin-off, reorganization, recapitalization, merger, consolidation, exchange of shares or the like. Such adjustment shall be made by the Administrator, whose determination in that respect shall be final, binding and conclusive. Except as expressly
provided herein, no issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of
Company Stock subject to any option granted hereunder. 
 10.5 Merger of Company. In
the event that the Company at any time proposes to merge into, consolidate with or enter into any other reorganization pursuant to which the Company is not the surviving entity (including the sale of substantially all of its assets or a
“reverse” merger in which the Company is the surviving entity), the Plan and each then outstanding option hereunder shall terminate, unless provision is made in writing in connection with such transaction for the continuance of the Plan
and for the assumption of outstanding options theretofore granted, or the substitution for such outstanding options of new options covering the shares of a successor corporation, with appropriate adjustments as to number and kind of shares and
prices, in which event the Plan and the outstanding options theretofore granted or the new options substituted therefor, shall continue in the manner and under the terms so provided. If such provision is not made in such transaction for the
continuance of the Plan and the assumption of the outstanding options theretofore granted or the substitution for such outstanding options of new options covering the shares of a successor corporation, then the Administrator shall cause written
notice of the proposed transaction to be given to the persons holding then-outstanding options not less than 10 days prior to the anticipated effective date of the proposed transaction, and, concurrent with the effective date of the proposed
transaction, such outstanding options shall be exercised automatically in accordance with Section 7.1 as if such effective date were the Purchase Date of each Purchase Period then in progress, unless a Participant withdraws from the Plan as
provided in Section 8.1, and each Offering Period then in effect shall thereupon terminate. The Administrator may provide in each case that the transactions contemplated by this Section 10.5 are contingent upon the consummation of the
proposed merger, consolidation or other reorganization event and provide for the reinstatement of the Plan and outstanding options and the continuation of each Offering Period then in effect in the event that such consummation does not occur.

  
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 ARTICLE 11 

MISCELLANEOUS MATTERS 

11.1 Amendment and Termination. The Plan shall terminate on May 23, 2023. Since future
conditions affecting the Company cannot be anticipated or foreseen, the Company reserves the right to amend, modify, or terminate the Plan at any time. Upon termination of the Plan, all benefits shall become payable immediately. Notwithstanding the
foregoing, no such amendment or termination shall affect rights previously granted, nor may an amendment make any change in any right previously granted which adversely affects the rights of any Participant without the Participant’s consent. In
addition, no amendment may be made without prior approval of the stockholders of the Company if such amendment would: 
 a.
Increase the number of shares of Company Stock that may be issued under the Plan; 
 b. Materially modify the requirements as to eligibility
for participation in the Plan; or 
 c. Materially increase the benefits which accrue to Participants under the Plan. 

11.2 Benefits Not Alienable. Benefits under the Plan may not be assigned or alienated, whether
voluntarily or involuntarily. Any attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw funds in accordance with Article 8. 

11.3 No Enlargement of Employee Rights. This Plan is strictly a voluntary undertaking on the part of
the Company and shall not be deemed to constitute a contract between the Company and any Employee or to be consideration for, or an inducement to, or a condition of, the employment of any Employee. Nothing contained in the Plan shall be deemed to
give the right to any Employee to be retained in the employ of the Company or to interfere with the right of the Company to discharge any Employee at any time.  

11.4 Governing Law. To the extent not preempted by Federal law, all legal questions pertaining to
the Plan shall be determined in accordance with the laws of the State of California. 
 11.5
Non-business Days. When any act under the Plan is required to be performed on a day that falls on a Saturday, Sunday or U.S. federal holiday, that act shall be performed on the next succeeding day which is not a Saturday,
Sunday or U.S. federal holiday. Similarly, no Offering Period or Purchase Period may begin or end on a Saturday, Sunday or U.S. federal holiday, and any such Offering Period or Purchase Period that projects to begin or end on a Saturday, Sunday or
U.S. federal holiday shall instead begin or end, as applicable, on the next succeeding day which is not a Saturday, Sunday or U.S. federal holiday.  

11.6 Compliance With Securities Laws. The Plan, the granting of options under the Plan and the offer, issuance and
delivery of shares of Company Stock are subject to compliance with all applicable federal and state laws, rules and regulations (including but not limited to state and federal securities laws) and to such approvals by any listing, regulatory or
governmental authority as may, in the opinion of counsel for the Company, be necessary or advisable in connection therewith. The 

  
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person acquiring any securities under the Plan will, if requested by the Company and as a condition precedent to the exercise of his or her option, provide such assurances and representations to
the Company as the Administrator may deem necessary or desirable to assure compliance with all applicable legal requirements. 

11.7 Other Company Benefit and Compensation Programs. Payments and other benefits received by an
Employee pursuant to the Plan shall not be deemed a part of the Employee’s compensation for purposes of the determination of benefits under any other employee welfare or benefit plans or arrangements, if any, provided by the Company or any
Subsidiary, except where the Administrator expressly otherwise provides or authorizes in writing. 

  
 11Annex A: 5BARz International, Inc.
2013 Stock Incentive Plan

 

5BARZ
INTERNATIONAL, INC. 2013 STOCK INCENTIVE PLAN

(Adopted May 17, 2013)

 

SECTION
1. PURPOSE

 

The purpose
of the 5BARZ
INTERNATIONAL, INC. 2013 Stock Incentive Plan
(the "Plan") is to enhance
the long-term stockholder value of 5BARZ INTERNATIONAL, INC., a Nevada corporation
(the "Company"), by offering opportunities to selected Persons to participate in the Company's
growth and success, and to encourage them to remain in the service of the Company
or a Related Company (as defined
in Section 2) and to acquire and maintain
stock ownership in the Company.

 

SECTION 2. DEFINITIONS

 

ln the Plan:

 

"Award"
means any Option or Stock Award.

 

"Board" means the Board of Directors of the
Company.

 

"Cause,"
unless otherwise defined in the instrument evidencing the Award or in an employment or services agreement between the Company
or a Related Company and a Participant, means
dishonesty, fraud, misconduct, unauthorized use or disclosure of
confidential information or trade secrets or violation of noncompetition and
confidentiality  agreements, or conviction or confession of
a crime punishable by law (except
minor violations), in each case as determined by the Plan Administrator, and its
determination shall be conclusive and binding.

 

"Code" means
the Internal Revenue Code of 1986,
as amended from time to time.

 

"Committee" shall mean
a committee, or subcommittee, consisting of two or more directors
who shall be appointed by
and serve at the pleasure of the Board. To the extent
necessary for compliance with Rule 16b-3, or any successor provision, each of
the members of the Committee shall be a "non-employee director."
Solely for purposes of this Section l(e),
"non-employee director"
shall have the same meaning as set forth in Rule 16b-3 under the Exchange Act, or
any successor provision, as then
in effect.

 

"Common Stock" or "Stock"
means the common stock, $0.001 par value per share,
of the Company. "Company" means
5BARZ INTERNATIONAL, INC., a Nevada corporation.

"Company Transaction" unless otherwise
defined in the instrument evidencing the Award or in
a written employment or services agreement between a Participant and the Company
or a Related Company
and a Participant, means consummation
of either:

 

(a)             
a merger or consolidation of the
Company with or into any other entity; or

 

(b)              
a sale, lease, exchange
or other transfer in one transaction or a series
of related transactions undertaken with a
common purpose of all or substantially
all the Company's then outstanding securities
or all or substantially all the
Company's assets; provided,
however, that a Company Transaction
shall not include a Related Party Transaction.

 

"Disability,"
unless otherwise defined by the Plan Administrator, means a
mental or physical impairment of a Participant
that is expected to result in
death or that has lasted
or is expected to last for a continuous
period of twelve (12) months or more and that causes a Participant to be unable,
in the opinion of the Company, to
perform his or her duties for the
Company or a Related Company and to be engaged in any substantial gainful activity.

 

"Early Retirement" means Termination
of Service (as defined below) prior to Retirement on terms and conditions approved by
the Plan Administrator.

 

"Exchange
Act" means the Securities Exchange Act of 1934, as amended,
and the rules and regulations of
the Securities and Exchange Commission promulgated thereunder.

"Fair
Market Value" means the per share value of the Common Stock as
established in good faith by the Plan Administrator or, if the Common Stock is: (a) listed on a national stock exchange
(including any tier of The Nasdaq Stock
Market, The New York Stock Exchange or
The American Stock Exchange), the closing
sales price for the Common Stock as reported by that
market for regular session trading for a single
trading day; or (b) quoted on OTC Bulletin Board, OTC
QX or by the Pink OTC Markets Inc., the
closing sales price reported by such service for a single trading day. Ifthere
is no such reported
price for the Common Stock for the
date in question, then such price
on the last preceding date for which
such price exists shall be determinative
of Fair Market Value.

 

"Grant
Date" means the date on which the Plan Administrator completes
the corporate action relating to the
grant of an Award or such later date specified
by the Plan Administrator, and on
which all conditions
precedent to the grant have been satisfied;
provided, however, that conditions
to the exercisability or vesting of Awards
shall not defer the Grant Date.

 

"Incentive
Stock Option" means an Option granted with
the intention, as reflected in the instrument evidencing the Option, that it qualify
as an "incentive stock option" as that
term is defined in Section 422 of the Code.

 

"Nonqualified Stock Option" means
an Option other than an Incentive Stock Option.

 

"Option" means the
right to purchase Common Stock granted under Section 7.

 

"Option Expiration
Date" has the meaning set forth in Section 7.6.

 

"Option Term''
has the meaning set forth in Section 7.3. 

 

"Participant"
means the Person to whom an Award is granted.

 

"Plan"
means the 5BARZ INTERNATIONAL, INC. 2013
Stock Incentive Plan.

 

"Plan Administrator" shall mean the
Board, or one or more Committees appointed
by the Board, as the
case may be.

 

"Person"
means any individual, corporation,
partnership, limited liability company, firm, joint venture,
association, joint-stock company, trust, incorporated,
organization, governmental or regulatory or other entity.

 

"Related Company"
means any entity that, directly or indirectly, is in control of,
or is controlled by, or is under
common control with the Company.

 

"Related Party Transaction"
means (a) a merger or consolidation of the
Company in which the holders of the outstanding
voting securities of the Company immediately prior
to the merger or consolidation hold
at least a majority of the outstanding
voting securities of the Successor Company immediately
after the merger or consolidation; (b) a sale, lease,
exchange or other transfer of the Company's assets to
a majority-owned subsidiary company; (c) a transaction undertaken for the principal purpose
of restructuring the capital of the Company, including
but not limited to, reincorporating
the Company in a different jurisdiction or creating a holding company; or (d) a corporate
dissolution or liquidation.

 

"Retirement"
unless otherwise defined by the Plan
Administrator from time to time for purposes
of the Plan, means Termination of Service on or after the date the individual
reaches "normal retirement age" as that term is defined in Section 41 l(a)(8)
of the Code.

 

"Securities Act" means the Securities Act of 1933,
as amended.

 

"Stock
Award" means an award of shares
of Common Stock or units denominated
in Common Stock granted under Section
9, the rights of ownership of which
may be subject to restrictions prescribed by the Plan Administrator.

 

"Successor
Company" means the surviving company,
the successor company or its parent, as applicable, in connection
with a Company Transaction.

 

“Termination
of Service" means a termination of employment
or service relationship with the Company or a Related Company for any reason, whether
voluntary or involuntary, including death, Disability, Early Retirement or Retirement,
as determined by the Administrator in its sole discretion. Any question
as to whether and when there has been a
Termination of Service for the purposes of an Award and the cause of such Termination
of Service shall be determined by the Plan Administrator and
its determination shall be final. Transfer of a Participant's employment or
service relationship between Related Corporations, or between the Company and any Related Corporation, shall not be considered
a Termination of Service for purposes of
an Award, but unless the Plan Administrator determines otherwise, a
Termination of Service shall be deemed to occur if a Participant's employment or service
relationship is with an entity that has ceased to be a
Related Corporation.

 

"Vesting Commencement Date" means the
Grant Date or such other date selected by the Plan Administrator as
the date from which the Option begins to
vest for purposes of Section 7.4.

 

SECTION 3. ADMINISTRATION

 

3.1   
Plan Administrator

The Plan shall be administered by
the Plan Administrator. ff and so long as the Common Stock is registered under
Section l2(b) or 12(g) of the Exchange Act, the Board shall consider in selecting the members of
any Committee acting as Plan Administrator, with respect to any members of such
Committee(s) subject or likely to become subject to Section 16 of the Exchange
Act, the provisions regarding (a) "outside directors" as
contemplated by Section 162(m) of the Code and (b) "nonemployee
directors" as contemplated by Rule 
16b-3 under the Exchange Act. Notwithstanding the foregoing, the Board may delegate the responsibility for administering
the Plan with respect to designated classes of eligible Persons to different Committees,
subject to such limitations as the Board deems appropriate.
A Committee member shall serve at the pleasure
of the Board for such term as the Board
may determine, subject to removal by the Board at any time. To
the extent consistent with applicable law, the Board may authorize one or more senior
executive officers of the Company to grant Awards to designated classes of eligible Persons, within the limits
specifically prescribed by the Board.

 

3.2   
Administration and Interpretation by Plan Administrator

Except for the terms and conditions explicitly
set forth in this Plan, the Plan Administrator
shall have exclusive authority, in its discretion, to determine all matters
relating to Awards under the Plan, including
the selection of individuals to be granted Awards,
the type of Awards, the number of shares
of Common Stock subject to an Award, all terms,
conditions, restrictions and limitations, if any, of an Award
and the terms of any instrument that evidences
the Award. The Plan Administrator
shall also have exclusive authority to interpret the Plan and the terms of any instrument evidencing the Award and may from
time to time adopt and change rules
and regulations of general application for the Plan's administration.
The Plan Administrator's interpretation of the Plan and
its rules and regulations, and all actions taken and determinations made by the Plan Administrator pursuant
to the Plan, shall be conclusive and binding
on all parties involved or affected. The Plan Administrator may delegate ministerial
duties to such of the Company's officers as
it so determines.

 

 

 

 

SECTION 4.
STOCK SUBJECT TO THE PLAN

 

4.1   
Authorized Number of Shares

 

Subject to adjustment from time to
time as provided in Section 12.1, a maximum of twenty
million (20,000,000) shares of Common
Stock shall be available for issuance under the Plan. Shares issued under the Plan shall be drawn
from authorized and unissued shares of Common Stock or shares of Common Stock
now held or subsequently acquired by the Company.

 

4.2   
Reuse of Shares

Any shares
of Common Stock that have been made subject
to an Award that cease to be subject to
the Award (other than by reason of
exercise or settlement of the Award to the extent it is
exercised for or settled in shares) shall
again be available for issuance in connection with future grants of Awards under
the Plan. In the event shares of Common Stock
issued under the Plan are
reacquired by the Company
pursuant to any forfeiture provision,
right of repurchase or right of first refusal,
such shares shall again be available for
the purposes of the Plan; provided, however, that the maximum number of shares
that may be issued upon the exercise of Incentive Stock Options shall equal the share
number stated in Section 4.1, subject to
adjustment from time to time as provided in Section 12.1.

 

SECTION 5. ELIGIBILITY

An Award may be granted
to eligible Persons, including any
officer, director or employee of the Company, or a Related Company, that the Plan Administrator
from time to time selects. If an Award is
granted to any consultant, advisor or independent
contractor who provides services to the
Company or any Related Company,
the services rendered must be bona fide
services that (i) are not in connection
with the offer and/or
sale of any of the Company's securities
in a capital-raising transaction, and
(ii) do not directly or indirectly promote
or maintain a market for any
of the Company's securities.

 

SECTION 6. AWARDS

 

		6.1	Form and Grant of Awards

The Plan Administrator shall
have the authority, in its sole discretion, to determine the type or types
of Awards to be granted under the Plan. Awards may be granted singly or in combination.

 

		6.2	Settlement of Awards

The
Company may settle Awards through the delivery of shares
of Common Stock, the granting
of replacement Awards or any combination
thereof as the Plan Administrator shall
determine. Any Award settlement, including payment deferrals, may be subject to such
conditions, restrictions and
contingencies as the Plan Administrator shall determine. The Plan Administrator may
permit or require the deferral of
any Award payment, subject to such rules
and procedures as it may establish, which
may include provisions for the payment
or crediting of interest, or dividend
equivalents, including converting such credits into deferred stock equivalents.

 

		6.3	Acquired Company Awards

Notwithstanding anything in the Plan
to the contrary, the Plan Administrator may grant Awards under the Plan in substitution
for awards issued under other plans, or assume under the Plan awards issued under other
plans, if the other plans are or
were plans of other acquired entities, or
the parent of such acquired entity ("Acquired Entities") and the new Award is substituted, or
the old award is assumed, by reason of a merger, consolidation, acquisition of
property or stock, reorganization or liquidation (the "Acquisition Transaction").
In the event that a written agreement pursuant to which the Acquisition Transaction is completed is approved by the Board
and said agreement sets forth the terms and conditions of the substitution for or assumption
of outstanding awards of the Acquired Entity, said terms and conditions shall be deemed
to be the action of the Plan Administrator without any further action
by the Plan Administrator, except as may
be required for compliance with Rule l6b-3 under the Exchange Act, and the
Persons holding such awards shall be deemed to be Participants.

 

 

SECTION 7. AWARDS OF OPTIONS

 

7.1   
Grant
of Options

The Plan Administrator shall have the
authority, in its sole discretion, to grant Options designated as
Incentive Stock Options or as Nonqualified Stock Options.

 

		7.2	Option Exercise Price

 

The
exercise price for shares purchased under an Option shall be as determined by
the Plan Administrator, but shall not be less
than the minimum exercise price required by Section 8.3 with respect to Incentive
Stock Options.

 

7.3   
Term of Options

Subject to earlier
termination in accordance with the terms of the
Plan and the instrument evidencing the Option, the maximum term of an Option (the "Option Term") shall
be as established for that Option by
the Plan Administrator, or if not so established, shall be ten (10) years from the
Grant Date. For Incentive Stock Options, the Option Term shall be as specified
in Section 8.4.

		7.4	Exercise of Options

The Plan Administrator
shall establish and set forth in each instrument that evidences an Option the time at
which, or the installments in which, the Option shall vest and become exercisable,
any of which provisions may be waived or
modified by the Plan Administrator at any time. If not so established in the instrument
evidencing the Option, the Option shall vest and become exercisable according to the
following schedule, which may be waived or modified by the Plan Administrator at
any time:

 

	Period of Participant's Continuous Employment or Service With the Company or Its Related Companies From the Vesting Commencement Date	 	Portion of Total Option That Is Vested and Exercisable
	After 1 year	 	 33%
	Each additional one-month period of continuous employment or service completed
thereafter	 	 1/36"' of the remaining 75%
	After 3 years	 	100%

 

     

     

    

 

			The Plan Administrator, in its sole discretion,
may adjust the vesting schedule of an Option
held by a Participant who works
less than "full time"
as that term is defined by the
Plan Administrator or who takes
a Company approved leave of absence.

 

			To the extent an Option has
vested and become exercisable, the Option may be exercised in whole or, from time to
time, in part by delivery to the Company of a written
stock option exercise agreement or notice, in a form and in
accordance with procedures established by the Plan Administrator, setting forth the
number of shares with respect to which the Option is being exercised, the restrictions
imposed on the shares purchased under such exercise agreement, if
any, and such representations and agreements as may be required by the Plan Administrator, accompanied by payment in full
as described in Section 7.5. An Option may
be exercised only for whole shares and may not be exercised for less than a
reasonable number of shares at any one time,
as determined by the Plan Administrator.

 

		7.5	Payment of Exercise Price

			The exercise price for shares purchased under an Option shall be paid in full to the Company
by delivery of consideration equal to the product of
the Option exercise price and the
number of shares purchased. Such consideration must be paid before the Company will issue the shares
being purchased and must be in a form or a combination of forms acceptable
to the Plan Administrator for that purchase,
which forms may include:

 

		(a)	cash;

 

		(b)	check;

 

		(c)	tendering (either actually or, if the Common Stock
is registered under Section 12(b) or 12(g)
of the Exchange Act, by
attestation) shares of Common Stock
already owned by a Participant for at
least six (6) months (or any shorter period necessary to avoid
a charge to the Company 's earnings for financial reporting purposes) that
on the day prior to the exercise date have a Fair Market Value equal to the aggregate
exercise price of the shares being purchased under the Option;

 

		(d)	if the Common Stock is registered under Section 12(b) or 12(g)
of the Exchange Act, delivery of a properly executed exercise notice, together with
irrevocable instructions to a brokerage firm designated by the Company to deliver promptly to the Company the aggregate amount
of sale or loan proceeds to pay the Option
exercise price and any withholding tax obligations that may arise in connection with the exercise,
all in accordance with the regulations of the Federal Reserve Board; or

 

		(e)	such other consideration as the Plan Administrator may permit.

 

			In addition, to assist a Participant (including a
Participant who is an officer or a director
of the Company) in acquiring shares of Common
Stock pursuant to an Award granted under the Plan,
the Plan Administrator, in its sole discretion, may authorize, either at the Grant
Date or at any time before the acquisition
of Common Stock pursuant to the Award, (i) the payment by a Participant of
the purchase price of the Common Stock by a full-recourse promissory note or
(ii) the guarantee by the Company of a full-recourse
loan obtained by a Participant from a third party. Subject to the foregoing, the Plan Administrator shall
in its sole discretion specify the terms of any loans or
loan guarantees, including the interest rate and terms of
and security for repayment.

 

7.6        
Post-Termination Exercises

			The Plan Administrator shall establish and set forth
in each instrument that evidences an Option
whether the Option shall continue to be exercisable, and the terms
and conditions of such exercise, if a Participant ceases
to be employed by, or to
provide services to, the Company or
a Related Company, which provisions
may be waived or modified by the Plan Administrator at any time. If not
so established in the instrument evidencing the
Option, the Option shall be exercisable according to the following terms and
conditions, which may be waived or modified by the Plan Administrator at any time:

 

		(a)	Any portion
of an Option that is
not vested and exercisable
on the date of a Participant's Termination
of Service shall expire on such date.

 

		(b)	Any portion
of an Option that is vested and exercisable
on the date of a Participant's Termination of Service shall expire
on the earliest to occur of:

 

		(i)	if the
Participant' s Termination of Service occurs for reasons other than
Cause, Retirement or Early Retirement,
Disability or death, the date which is
three (3) months after such Termination of
Service;

 

(ii)    
if the Participant 's Termination of Service occurs by reason of
Retirement or Early Retirement,

Disability or death, the one-year
anniversary of such Termination of Service;
and

 

		(iii)	the last day of the Option Term (the "Option
Expiration Date").

 

Notwithstanding the foregoing, if a Participant dies after
his or her Termination of Service
but while an Option is otherwise exercisable, the portion of the
Option that is vested and exercisable on such Termination of Service shall expire
upon the earlier to occur of (y) the Option Expiration Date
and (z) the one-year anniversary of the date of death,
unless the Plan Administrator determines otherwise.

 

Also notwithstanding the foregoing, in case a
Participant' s Termination of Service occurs for Cause,
all Options granted to a Participant shall automatically expire
upon first notification to the
Participant of such termination,
unless the Plan Administrator determines
otherwise. lf a Participant's employment
or service relationship with
the Company is suspended pending an investigation of whether a Participant
shall be terminated for Cause, all a Participant's rights
under any Option shall likewise be
suspended during the period
of investigation. If any facts that would
constitute termination for Cause are discovered
after a Participant's Termination of Service, any
Option then held by a Participant may be immediately terminated
by the Plan Administrator, in its sole
discretion.

 

		(c)	A Participant's transfer
of employment or service relationship
between or among the Company and any Related Company, or a change in status from an
employee to a consultant, advisor or independent contractor or a change in status from
a consultant, advisor or independent contractor to an employee,
shall not be considered a Termination
of Service for purposes of this
Section 7.

 

		(d)	The effect
of a Company-approved leave of absence on the
application of this Section 7 shall be determined by the Plan Administrator, in its
sole discretion.

 

SECTION 8. INCENTIVE
STOCK OPTION LIMITATIONS

 

Notwithstanding any other
provisions of the Plan, and to the extent
required by Section 422 of the Code, Incentive
Stock Options shall be subject to the following additional terms and conditions:

     

     

    

		8.1	Dollar Limitation

To the extent the
aggregate Fair Market Value (determined as of
the Grant Date) of Common Stock with respect to which a Participant's Incentive Stock
Options become exercisable for the first time during any calendar year (under
the Plan and all other stock option plans of the Company) exceeds $100,000, such
portion in excess of $100,000 shall be treated as a Nonqualified Stock Option.
In the event a Participant holds two or more such Options that become exercisable for
the first time in the same calendar year, such limitation shall be applied on the basis
of the order in which such Options are granted.

 

		8.2	Eligible Employees

Individuals who are
not employees of the Company or one of its parent companies or subsidiary companies may not be
granted Incentive Stock Options.

 

		8.3	Exercise Price

The exercise price of an
Incentive Stock Option shall be
at least one hundred percent (100%) of
the Fair Market Value of the Common Stock on the
Grant Date, and in the case of an Incentive Stock Option granted to a Participant who
owns more than ten percent ( 10%) of the total combined
voting power of all classes of
the stock of the Company or of
its parent or subsidiary companies (a
"Ten Percent Stockholder"), shall
not be less than one hundred and ten percent (110%) of the Fair Market
Value of the Common Stock on the Grant Date.
The determination of more than ten percent (10%) ownership shall be made
in accordance with Section 422 of the Code.

 

		8.4	Option Term

Subject
to earlier termination in accordance with the terms of the Plan and the instrument
evidencing the Option, the Option Term of an Incentive Stock Option shall not exceed ten
(10) years, and in the case of an Incentive
Stock Option granted to a Ten Percent Stockholder, shall not exceed five (5)
years.

 

		8.5	Exercisability

An Option designated
as an Incentive Stock Option shall cease to qualify for favorable tax treatment as
an Incentive Stock Option to the extent
it is exercised (if permitted by the terms of the Option):

 

		(a)	more than
three (3) months after the date
of a Participant's Termination of Service, if
termination was for reasons other than death or disability;

 

		(b)	more than one (1) year after the
date of a Participant's Termination
of Service, if termination was by reason
of disability; or

 

		(c)	after a Participant has been on leave of absence
for more than ninety (90) days, unless a Participant's reemployment rights
are guaranteed by statute or contract.

 

		8.6	Taxation of Incentive Stock Options

In order to obtain
certain tax benefits afforded to Incentive Stock Options under Section 422 of the Code,
a Participant must hold the shares acquired upon the exercise of an Incentive Stock
Option for two (2) years after the Grant Date and one (1) year after the date of
exercise.

A
Participant may be subject to the alternative
minimum tax at the time of exercise of an Incentive Stock Option. A
Participant shall give the Company prompt written notice of any disposition of
shares acquired on the exercise of an Incentive Stock Option prior to
the expiration of such holding periods.

 

		8.7	Promissory Notes

The
amount of any promissory note delivered pursuant to Section 7.5
herein in connection with an Incentive Stock Option shall bear interest at a rate specified
by the Plan Administrator, but in no case less than the rate required to avoid imputation of interest (taking into account any
exceptions to the imputed interest rules) for federal income tax purposes.

 

8.8 Code
Definitions

For
the purposes of this Section 8, "parent
corporation," "subsidiary corporation"
and "disability" shall have
the meanings attributed to those terms for purposes of Section 422 of the Code.

 

 

SECTION 9. STOCK AWARDS

 

9.1 Grant of Stock
Awards

The Plan Administrator is authorized to
make Awards of shares of Common Stock or Awards
denominated in units of Common Stock on such terms and conditions and subject to such
repurchase or forfeiture restrictions, if any (which may be based on continuous service
with the Company or the achievement of performance goals related to profits,
profit growth, profit-related  return ratios, cash flow or total stockholder return,
where such goals may be stated in absolute terms or relative to comparison companies),
as the Plan Administrator shall determine,
in its sole discretion, which terms, conditions and restrictions shall be set forth
in the instrument evidencing the Award. The terms, conditions and restrictions that
the Plan Administrator  shall have the power to determine shall include, without limitation,
the manner in which shares subject to Stock Awards are held during the
periods they are subject to restrictions and the circumstances under which repurchase or forfeiture of the Stock
Award shall occur by reason of a
Participant's Termination  of Service.

 

9.2 Issuance of Shares

Upon the satisfaction
of any terms, conditions and restrictions prescribed in respect to a Stock
Award, or upon a Participant's release
from any terms, conditions and restrictions of a Stock
Award, as determined by the Plan Administrator, the Company shall release, as
soon as practicable, to a Participant or, in the case of a Participant's death,
to the personal representative of a Participant's estate or as
the appropriate court directs, the appropriate number of shares of Common Stock.

 

9.3 Waiver of
Restrictions

Notwithstanding
any other provision s of the Plan,
the Plan Administrator may, in its sole
discretion, waive the repurchase or forfeiture period and any other terms,
conditions or restrictions on any Stock Award under such circumstances and
subject to such terms and conditions as the Plan Administrator shall deem appropriate.

 

SECTION 10. WITHHOLDING

 

The Company
may require a Participant to pay to
the Company the amount of any taxes that
the Company is required by applicable federal,
state, local or foreign law to withhold with
respect to the grant, vesting or exercise of an Award.
The Company shall not be required
to grant or issue any securities under
the Plan until such obligations are satisfied.

 

The Plan Administrator
may permit or require a Participant to satisfy all or part of his or her tax withholding obligations by (a) paying cash to the
Company, (b) having the Company withhold from any cash amounts otherwise due or to
become due from the Company to a Participant, or (c) having the Company withhold a
number of shares of Common Stock that would otherwise be issued to a Participant (or
become vested, as applicable) having a
value equal to the tax withholding obligations (up to the
employer's minimum required tax withholding rate), or

(d) surrendering
a number of shares of Common Stock a Participant already owns having a value equal to
the tax withholding obligations (up to the employer's minimum  required tax withholding
rate to the extent a Participant has owned the surrendered shares for less
than six (6) months if such a limitation is necessary
to avoid a charge to the Company for financial reporting purposes).

 

SECTION
11. TRANSFERABILITY

 

Neither an Award nor any interest
therein may be assigned, pledged or transferred by a
Participant or made subject to attachment
or similar proceedings otherwise than by will or
by the applicable laws of descent and distribution,
and, during a Participant's lifetime, such Awards may be
exercised only by a Participant. Notwithstanding the foregoing, and to the
extent permitted by Section 422 of the Code, the Plan Administrator, in its sole discretion
may permit a Participant to assign or transfer
an Award
or may permit a Participant to designate a beneficiary who may exercise the
Award or receive payment under the Award after a Participant' s
death; provided, however, that an
Award so assigned or transferred shall
be subject to all the terms and conditions
of the Plan and those contained in the instrument evidencing the Award.

 

SECTION
12. ADJUSTMENTS

 

		12.1Adjustment	of Shares

In
the event, at any time or from time to time, a stock dividend, stock split, spin-off, combination or exchange of shares,
recapitalization, merger, consolidation,
distribution to stockholders other than a normal cash dividend, or other change in
the Company's corporate or capital structure results in (a) the outstanding
shares of Common Stock, or any securities exchanged therefor or received in their place,
being exchanged for a different number or kind of securities of the Company or of
any other company or (b) new, different or additional securities of the Company or of any other company being received by the holders
of shares of Common Stock of the Company, then the Plan Administrator shall
make proportional adjustments in (i) the maximum number and kind of securities subject
to the Plan and issuable as Incentive Stock Options as set forth
in Section 4 and (ii) the number and
kind of securities that are subject to any
outstanding Award and the per share price of such securities, without any change in
the aggregate price to be paid therefor. The determination by the Plan Administrator as to the
terms of any of the foregoing adjustments shall be conclusive and binding. Notwithstanding
the foregoing, a dissolution or liquidation of the Company or a Company Transaction shall not be
governed by this Section 12.l but shall be governed by Sections 12.2
and 12.3, respectively.

 

		12.2	Dissolution or Liquidation

To the extent not
previously exercised or settled, and unless otherwise determined by the Plan Administrator in its sole discretion,
Options and Stock Awards denominated in units shall terminate immediately prior to the dissolution or liquidation of the Company.
To the extent a forfeiture provision or repurchase right applicable to an Award has
not been waived by the Plan Administrator, the Award shall be forfeited immediately
prior to the consummation of the dissolution or liquidation.

 

		12.3	Company Transaction

		12.3.1	Options

In the event of a
Company Transaction, except as otherwise provided
in the instrument evidencing an Option or in a written employment or services
agreement between a Participant and the Company or a Related Company, the following
shall apply:

 

		(a)	Except as provided
in subsection (b) below, each outstanding
Option shall be assumed or an
equivalent option or right substituted by the Successor Company.

 

		(b)	lf in the event of
a Company Transaction the Successor Company refuses to assume or substitute for
an Option, then each such outstanding Option shall become fully vested and exercisable
with respect to one hundred percent (100%) of the unvested portion of the Option.
Jn such case, the Plan Administrator shall notify a
Participant in writing or electronically that one hundred percent (100%) of the
unvested portion of the Option specified above shall be fully vested and exercisable for a specified time period. At the expiration
of the time period, the Option shall terminate, provided that the Company Transaction
is consummated.

 

		(c)	For the purposes of this
Section 12.3, the Option shall be considered assumed or substituted for if following the Company Transaction the option or right
confers the right to purchase or receive,
for each share of Common Stock subject to the Option
immediately prior to the Company
Transaction, the consideration (whether stock, cash, or other securities
or property) received in the Company
Transaction by holders of Common Stock for each
share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration
chosen by the holders of a majority of
the outstanding shares); provided, however, that if
such consideration received in the Company Transaction is not solely common stock of
the Successor Company, the Plan Administrator may, with the consent of the Successor Company, provide for the consideration to
be received upon the exercise of the Option, for each share of Common Stock subject thereto, to be solely common stock of
the Successor Company substantially equal in fair
market value to the per share consideration received by holders of Common Stock in
the Company Transaction. The determination of such substantial equality of value of consideration shall be made by the Plan
Administrator and its determination shall be
conclusive and binding.

 

		(d)	All Options shall terminate
and cease to remain outstanding immediately following the
Company Transaction, except to the extent assumed
by the Successor Company.

 

12.3.2 Stock Awards

In the
event of a Company Transaction, except as otherwise
provided in the instrument evidencing
the Award or
in a written employment or services
agreement between a Participant and the
Company or a Related Company, the vesting of shares subject to Stock Awards shall
accelerate, and the forfeiture provisions
to which such shares are subject shall lapse, if and
to the same extent that the vesting of
outstanding Options accelerates in connection with the Company Transaction.
If unvested Options are to be assumed or
substituted by a Successor Company without acceleration upon the occurrence
of a Company Transaction, the repurchase or forfeiture provisions to
which such Stock Awards are
subject shall continue with respect
to shares of the Successor Company that
may be issued in exchange for such shares.

 

12.4 Further Adjustment
of Awards

Subject to Sections 12.2
and 12.3, the Plan Administrator shall have the
discretion, exercisable at any time
before a sale, merger,
consolidation, reorganization, liquidation, dissolution
or change of control of the Company, as defined by
the Plan Administrator, to take such
further action as it determines to be necessary
or advisable with respect to Awards. Such
authorized action may include (but shall
not be limited to) establishing, amending or waiving the type,
terms, conditions or duration of, or restrictions on,
Awards so as to provide for earlier,
later, extended or additional time for exercise, lifting
restrictions and other modifications, and the Plan
Administrator may take such actions with respect to all Participants,
to certain categories of Participants or
only to individual Participants. The Plan Administrator may take
such action before or after granting Awards to which the
action relates and before or after
any public announcement with respect to such sale, merger, consolidation, reorganization,
liquidation, dissolution or change of
control that is
the reason for such action.

 

12.5 Limitations

The grant of Awards shall in
no way affect the Company's right
to adjust, reclassify, reorganize or otherwise
change its capital or business structure
or to merge, consolidate, dissolve,
liquidate or sell or transfer all or any
part of its business or assets.

 

12.6
Fractional Shares

Inthe
event of any adjustment in the number
of shares covered by any Award,
each such Award shall cover only the number of full shares resulting from such
adjustment.

 

SECTION 13. (Intentionally
Deleted)

SECTION
14. MARKET STANDOFF

In the event of an underwritten public offering
by the Company of its equity securities pursuant
to an effective registration statement filed under the Securities Act,
including the Company's initial public offering, no Person may sell, make any short sale of,
loan, hypothecate,  pledge,
grant any option for the purchase of, or otherwise dispose of or
transfer for value or
otherwise agree to engage in any of the foregoing transactions with respect
to any shares issued pursuant to an Award granted under the Plan without the prior written consent of the Company or its underwriters.
Such limitations shall be in effect for such period of time as may be requested by the
Company or such underwriters
; provided, however,
that in no event shall such period exceed one hundred and eighty (180) days.

In the event
the Company makes any public offering of its securities and determines in its sole discretion that
it is necessary to reduce the number of
issued but unexercised stock purchase rights so as to comply with any state's securities
or Blue Sky Jaw limitations with respect thereto, the Board shall have the right in
its sole discretion (i) to accelerate
the exercisability of any Option and the date on which such Option must be exercised,
provided that the Company gives the Participant prior written notice of such acceleration,
and (ii) to cancel any Options or portions thereof which Participant does not exercise
prior to or contemporaneously
with such public offering.

 

In the
event of any stock split, stock dividend, recapitalization, combination of shares, exchange
of shares or other change affecting the Company's outstanding shares of Common Stock effected as a class
without the Company's receipt of consideration, any new, substituted or additional securities
distributed with respect to the purchased shares shall be immediately subject to the provisions
of this Section 14, to the same extent
the purchased shares are at such time covered by such provisions.

 

In order
to enforce the limitations of this Section 14, the Company may impose stop-transfer
instructions with respect to the purchased shares until the end of the applicable standoff
period.

 

SECTION 15.AMENDMENT
AND TERMINATION

 

		15.1	Amendment, Suspension
or Termination of Plan

The
Board may amend, suspend or terminate the
Plan or any portion of the Plan at any time and in such respects as
it shall deem advisable; provided, however,
that to the extent required for compliance with Section 422 of the Code
or any applicable law or regulation, stockholder approval shall be required for any amendment that would:

 

		(a)	increase the total number of shares of Common Stock
available for issuance under the Plan;
(b) modify the class of employees eligible to
receive Options; or (c) otherwise require stockholder approval
under any applicable law or regulation. Any amendment made to the Plan that
would constitute a "modification" to Incentive Stock Options outstanding on the
date of such amendment shall not, without the consent
of a Participant, be applicable to such outstanding Incentive
Stock Options but shall have prospective
effect only.

 

		15.2	Term of Plan

The Plan shall
have no fixed expiration date; provided, however, that no Incentive Stock Options
may be granted more than ten (10) years after the later of
(a) the adoption by the Board of the Plan and (b) the adoption
by the Board of any amendment to
the Plan that constitutes the adoption of
a new plan for purposes of Section
422 of the Code.

 

		15.3	Consent of Participant

The suspension,
amendment or termination of the Plan or
a portion thereof or the amendment of an outstanding Award shall not, without
a Participant's consent, materially adversely affect any rights under any Award
theretofore granted to a Participant
under the Plan. Any change or adjustment to an outstanding
Incentive Stock Option shall not,
without the consent of a Participant,
be made in a manner so as to
constitute a "modification" that would cause such
Incentive Stock Option to fail to continue to qualify as an Incentive Stock Option.
Notwithstanding the foregoing, any adjustments made pursuant to Sections
12.l through 12.3 shall not be subject
to these restrictions.

 

SECTION 16.GENERAL

 

		16.1	Evidence of Awards

Awards granted under the Plan shall
be evidenced by a written instrument that shall contain such terms,
conditions, limitations and restrictions as the Plan Administrator shall deem
advisable and that are not inconsistent with the Plan.

 

		16.2	No Individual Rights

Nothing in the Plan
or any Award granted under the Plan shall be
deemed to constitute an employment contract
or confer or be deemed to confer on any Participant any right to continue in the employ
of, or to continue any other relationship with
the Company or any Related Company
or limit in any way the right of the Company or any Related
Company to terminate a Participant
's employment or other relationship
at any time, with or
without Cause.

		16.3	Issuance of Shares

Notwithstanding any
other provision of the Plan, the Company shall have no obligation to issue or deliver
any shares of Common Stock under the Plan or make any
other distribution of benefits under the Plan unless,
in the opinion of the Company's counsel, such issuance, delivery or distribution would comply with all applicable laws (including,
without limitation, the requirements of the Securities Act), and the applicable requirements
of any securities exchange or similar entity.

 

The Company shall be under
no obligation to any Participant to register for offering or
resale or to qualify for exemption
under federal, state and/or other securities laws any shares of
Common Stock, security or interest
in a security paid or issued under, or created by,
the Plan, or to continue in effect any such registrations or qualifications if made.

 

To the extent the Plan
or any instrument evidencing an Award provides for issuance of
stock certificates to reflect the issuance of shares
of Common Stock, the issuance may be effected on a
noncertificated basis, to the extent not
prohibited by applicable law or
the applicable rules of any stock
exchange. As a condition to
the exercise of an Option or any
other receipt of Common Stock pursuant to an Award under the Plan, the Company may
require (a) a Participant to represent
and warrant at the time of any such exercise or receipt that such shares
are being purchased or received only for a Participant's own account and without
any present intention to sell or distribute such shares and (b) such other action or
agreement by a Participant as may from time to time be necessary to comply with the
federal, state and/or other securities laws.
At the option of the Company, a stop-transfer
order against any such shares may be placed on the official stock books and records of the
Company, and a legend indicating that such shares may not be pledged, sold or
otherwise transferred, unless an opinion of counsel is provided
(concurred in by counsel for the Company) stating
that such transfer is not in violation
of any applicable law or regulation, may
be stamped on stock certificates to ensure exemption from registration. The Plan Administrator may also
require a Participant to execute and deliver to the Company a purchase agreement
or such other agreement as may be in use by the Company at such time that describes certain terms and conditions applicable to
the shares.

 

		16.4	No Rights as a Stockholder

A Participant (or the Participant's successor
or successors) shall have no rights as a stockholder with respect to any shares of Common Stock covered by an Option or Stock
Award until the date of the issuance
of a stock certificate evidencing such  hares.
No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property),
distributions or other rights for which the record date is prior to
the date such stock certificate is actually
issued (except as otherwise provided in Section 14 of the Plan).

 

16.5 Compliance With Laws and Regulations

Notwithstanding anything
in the Plan to the contrary, the Plan Administrator, in
its sole discretion, may bifurcate the Plan so as to restrict, limit or condition
the use of any provision of the Plan to Participants who are officers or directors
subject to Section 16 of the Exchange Act without so restricting, limiting or conditioning the Plan with respect to other Participants.
Additionally, in interpreting and applying the provisions of
the Plan, any Option granted as an
Incentive Stock Option pursuant to the
Plan shall, to the extent permitted
by law, be construed as an

"incentive stock
option" within the
meaning of Section 422 of the Code.

 

		16.6	Participants in Other Countries

The Plan Administrator shall have
the authority to adopt such modifications, procedures and subplans as may be
necessary or desirable to comply with provisions of the laws of other countries in which
the Company or any Related Company
may operate to assure the viability
of the benefits from Awards granted to Participants employed in such countries and to meet the objectives of
the Plan.

 

		16.7	Trust or Fund

The Plan is intended to constitute an
"unfunded" plan. Nothing contained herein shall require the Company
to segregate any monies or other property, or
shares of Common Stock, or to create any trusts,
or to make any special deposits for
any immediate or deferred amounts payable to any Participant,
and no Participant shall have any
rights that are greater than those of a general
unsecured creditor of the Company.

 

16.8 Severability

If any
provision of the Plan or any Award
is determined to be invalid, illegal or
unenforceable in any jurisdiction , or as to any Person,
or would disqualify the Plan or
any Award under any law deemed applicable by
the Plan Administrator, 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
Plan Administrator's determination,
materially altering the

intent of the Plan or
the Award, such provision shall be stricken as to such jurisdiction, Person or Award,
and the remainder of the Plan and any such Award shall remain in full force and effect.

 

		16.9	Choice of Law

The
Plan and all determinations made and
actions taken pursuant hereto, to the extent not
otherwise governed by the laws of
the United States, shall be governed
by the laws of the State of Nevada without giving
effect to principles of conflicts of law.

 

		16.10	Appendix Provisions

Participants who are residents of the
State of California shall be subject to
the additional terms and conditions set forth
in Appendix A to the Plan, attached hereto,
until such time as the Common Stock
becomes a "listed" security under the Securities Act.

 

 

SECTION
17. EFFECTIVE DATE

 

The "effective date" is
the date on which the Plan
is adopted by the
Board. If the stockholders
of the Company do not approve the Plan
within twelve (12) months after the Board's adoption of the
Plan, any Incentive Stock Options
granted under the Plan will be treated as
Nonqualified Stock Options.

     

     

    

APPENDIX A TO THE

5BARZ INTERNATIONAL, lNC.2013
STOCK INCENTIVE PLAN

(For
California Residents Only)

 

This
Appendix to the 5BARZ INTERNATIONA L, INC. 2013 Stock Incentive Plan (the "Plan")
shall have application only to Participants who are residents of the State of California.
Capitalized terms contained
herein shall have the same meanings given
to them in the Plan, unless otherwise provided in this Appendix. Notwithstanding
any provision contained in the Plan to the contrary and to the extent required by applicable law, the following terms and conditions
shall apply to all Awards granted to residents of the State of California, until
such time as the Common Stock becomes a "listed security" under the Securities Act:

 

1.
Options shall have a term of not more than
ten years from the Grant Date.

 

		2.	Awards shall
be nontransferable other than by will or the laws of descent and distribution.
Notwithstanding the foregoing, and to the extent permitted by Section 422 of the Code,
the Plan Administrator, in its discretion,
may permit transfer of an Award to a revocable
trust or as otherwise permitted by
Rule 701 of the Securities Act.

 

3. 
Unless employment or
services are terminated for Cause, the right to
exercise an Option in the event of Termination of Service, to the extent that
the Participant is otherwise entitled to exercise an Option
on the date of Termination of Service,
shall be (a) at least six months from the date of a Participant's
Termination of Service if termination was
caused by death or Disability, and (b) at least 30
days from the date of a Participant's Termination of Service if
termination of employment was caused by other than death or Disability, (c)
but in no event later than the Option
Expiration Date.

 

4. 
No Award may be granted to a
resident of California more than ten years after the earlier
of the date of adoption of the Plan
and the date the Plan is approved by the stockholders.

 

5. 
Stockholders of the Company must approve the Plan by
the later of (a) within  12 months
before or after the Plan is adopted by the Board and (b)
prior to or within  12 months of the grant of
an Option under the Plan to a resident of the State of California, except that
stockholders must approve the Plan prior to issuance of any securities under the Plan (other than Options) distributed or sold
to Participants who are residents of the State of California. Any Option exercised by a California resident or shares
issued under an Award to a California
resident shall be rescinded if stockholder approval is not obtained
in the foregoing manner. Shares subject to such Awards shall not be counted in
determining whether such approval is obtained.

 

6. 
To the extent required by applicable law,
the Company shall provide annual financial statements of the Company to each California
resident holding an outstanding Award under the Plan. Such financial statements need not be audited and need not be issued to key
persons whose duties at the Company assure them access to
equivalent information.

     

     

    

5BARZ INTERNATIONAL,
INC.2013 STOCK INCENTIVE PLAN

ADOPTION AND
AMENDMENTS/ADJUSTMENTS SUMMARY PAGE

 

	 Date of Board Action	 	Action 	 	 Section/Effect of Amendment	 	 Stockholder Approval
	 May 17, 2013	 	 Initial Plan Adoption	 	 	 	 None

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