Document:

2004 Unit Award Plan

 Exhibit 10.2 
  
 Sound Surgical Technologies LLC 
  
 2004 Unit Award Plan 
  
 Effective September 15, 2004 

 Sound Surgical Technologies LLC 
  
 2004 UNIT AWARD PLAN 
  
 TABLE OF CONTENTS 
  

			
	 	  	Page

	 Section 1. Purpose
	  	1
	 Section 2. Definitions
	  	1
	 Section 3. Administration
	  	4
	 Section 4. Units Subject to the Plan
	  	4
	 Section 5. Eligibility
	  	5
	 Section 6. Unit Options
	  	5
	 Section 7. Restricted Units
	  	7
	 Section 8. Termination of Employment
	  	8
	 Section 9. Transferability of Awards
	  	9
	 Section 10. Change in Control
	  	9
	 Section 11. Amendments and Termination
	  	10
	 Section 12. General Provisions
	  	10
	 Section 13. Term of Plan
	  	11

  
  
  
 Sound Surgical Technologies LLC 
  

 1 

 2004 UNIT AWARD PLAN 
  
 Sound Surgical Technologies, LLC (the “Company”), a Colorado limited liability company, hereby establishes the Sound Surgical
Technologies, LLC Unit Award Plan (the “Plan”), effective as of the Effective Date. 
  
 SECTION 1. PURPOSE. The purposes of the Plan are to encourage employees of the Company and its Affiliates to acquire an ownership interest in the
growth and performance of the Company and to increase their incentive to contribute to the Company’s future success, thus enhancing the value of the Company for the benefit of its members, and enhancing the ability of the Company and its
Affiliates to attract and retain individuals upon whom, in large measure, the progress, growth and profitability of the Company depend. 
  
 SECTION 2. DEFINITIONS. The following terms have the meanings set forth below: 
  
 “Affiliate” means any Person that directly, or through one or more intermediaries, controls, or is controlled by,
or is under common control with, the Company. 
  
 “Award” means any Option or Restricted Unit Award. 
  
 “Award Agreement” means the written agreement or instrument by which every Award is evidenced. 
  
 “Board” means the Management Committee of the Company. 
  

“Code” means the Internal Revenue Code of 1986, as amended from time to time. References to a specific section of the Code shall also refer
to any successor provision, and any regulations promulgated under such section or successor provision. 
  
 “Committee” means the Compensation Committee of the Management Committee. 
  
 “Company” means Sound Surgical Technologies LLC. 
  
 “Effective Date” means the date this Plan is adopted by the Board. 
  
 “Employee” means any employee of the Company or of any Affiliate.

  
 “Exchange Act” means the Securities Exchange Act of
1934. 
  
 “Fair Market Value” means, with respect to a
Unit means the value of a Unit as determined in good faith from time to time by the Committee. 
  

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 “Including” means including without limitation. 
  
 “Mature Units” means Units for which the holder thereof has good
title, free and clear of all restrictions, liens and encumbrances. 
  
 “Option” means any right granted to a Participant under the Plan allowing such Participant to purchase Units at such price or prices and during such period or periods, as the Committee shall determine. 
  
 “Optionee” means any Participant to whom an Option has been granted
under the Plan. 
  
 “Option Price” means the per unit
purchase price of Units subject to an Option. 
  
 “Participant” means an Employee who is selected by the Committee to receive an Award under the Plan. 
  
 “Performance Period” means that period established by the Committee at the time any Award 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. 
  
 “Permitted Transferee” means, in respect of any Participant, any member of the Immediate Family of such Participant, any trust of which all of the primary beneficiaries are such Participant or members of his
or her Immediate Family, or any partnership of which all of the partners are such Participant or members of his or her Immediate Family. The “Immediate Family” of a Participant means the Participant’s spouse, children, stepchildren,
grandchildren, parents, stepparents, siblings, grandparents, nieces and nephews. 
  
 “Person” means any individual, corporation, partnership, limited liability company, association, trust, unincorporated organization, or government or political subdivision thereof. 
  
 “Restricted Unit” means any Unit issued with the restriction that
the holder may not sell, transfer, pledge, or assign such Unit and with such other restrictions as the Committee, in its sole discretion, may impose (including any restriction on the right to vote such Unit and the right to receive any cash
distributions), which restrictions may lapse separately or in combination at such time or times, in installments or otherwise, as the Committee may specify. 
  
 “Restricted Unit Award” means an Award of Restricted Units pursuant to Section 7. 
  
 “Unit” means a unit of membership interest in the Company.

  

 3 

 SECTION 3. ADMINISTRATION. 
  
 (a) General. The Plan is administered by the Committee. A majority of the members of the Committee may determine its
actions and fix the time and place of its meetings. The Committee may appoint agents (who may be Employees) to assist in the administration of the Plan, and may authorize such persons to execute agreements or other documents on its behalf. No member
of the Committee shall be liable for any action or determination made with respect to the Plan or any Award. 
  
 (b) Power and Authority of Committee. The Committee shall have full power and authority, in its sole discretion subject to the provisions of the
Plan, to: 
  
 (i) determine the Employees to whom Awards may from
time to time be granted; 
  
 (ii) determine the type or types of
Award to be granted to each Participant; 
  
 (iii) determine the
number of Units to be covered by each Award, subject to the limitations of Section 4. 
  
 (iv) determine the terms and conditions, not inconsistent with the provisions of the Plan, of any Award; 
  
 (v) determine whether, to what extent and under what circumstances Awards may be settled in Units or other property or canceled or suspended; 

 
 (vi) determine the existence or nonexistence of any fact or status
relevant to Awards or the rights of Participants thereunder, including whether a Termination of Employment occurs by reason of cause, retirement, death or disability; 
  
 (vii) construe and interpret the Plan, any Award Agreement, and any other instrument or agreement entered into under the
Plan; 
  
 (viii) adjust performance criteria or the other terms
and conditions of Awards in recognition of unusual or nonrecurring events affecting the Company or its financial statements or changes in applicable laws, regulations or accounting principles; 
  
 (ix) make such other determinations and waive such requirements as may be
required or permitted under the Plan; 
  
 (x) administer the Plan
and establish such rules and regulations, approve and prescribe such forms, and appoint such agents as it shall deem appropriate for the proper administration of the Plan; 
  
 (xi) correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the manner and to
the extent it shall deem desirable to carry it into effect; 
  

 4 

 (xii) make any other determination and take any other action that the Committee deems necessary or
desirable for administration of the Plan. 
  
 In making such
determinations, the Committee may take into consideration the value of the services rendered by the respective individuals, their present and potential contributions to the success of the Company and its Affiliates and such other factors which the
Committee may deem relevant in accomplishing the purposes of the Plan. The Committee’s determinations under the Plan need not be uniform. The Committee may make such determinations selectively among persons who receive, or are eligible to
receive, Awards (whether or not such persons are similarly situated). Decisions of the Committee shall be final and binding upon all Persons. 
  
 SECTION 4. UNITS SUBJECT TO THE PLAN. 
  
 (a) Aggregate Limit. Subject to adjustment as provided in Section 15(h), a total of 325 Units are reserved for grant pursuant to Awards under the
Plan. Any Units issued hereunder may consist, in whole or in part, of authorized and unissued Units or treasury Units. Units shall be charged against the foregoing limit upon the grant of each Award, but if such Units are thereafter forfeited or
such Award otherwise terminates without the issuance of such Units, the Units so forfeited or related to the terminated portion of such Award shall be restored to the foregoing limit and shall again be available for Awards under the Plan. If Units
are applied to pay the Option Price upon exercise of an Option or to pay federal, state and local taxes upon exercise of an Option or other receipt of payment under an Award, the Units so applied shall be added to the foregoing limit and shall be
available for Awards under the Plan. 
  
 (b) Individual Annual
Limits. The maximum number of Units with respect to which Options and Restricted Units may be granted during a calendar year to any Participant is forty (40). 
  
 SECTION 5. ELIGIBILITY. The Committee, acting alone, may grant Awards to any Employee (excluding any member of the
Committee). Awards to any member of the Committee shall require the prior written approval of the Board. An Employee may be granted more than one Award, but only on the terms and subject to the restrictions hereinafter set forth. 
  
 SECTION 6. UNIT OPTIONS. 
  
 (a) Issuance. The Committee may grant Options to Participants either
alone or in addition to other Awards granted under the Plan. 
  

 5 

 (b) Award Agreements. Each Option shall be evidenced by an Award Agreement in such form as the
Committee may from time to time approve. Any Option shall also be subject to the following terms and conditions and to such additional terms and conditions, not inconsistent with the provisions of the Plan, as the Committee shall deem desirable.

  
 (i) Date of Granting of Options. The date of grant of
all Options shall be the date designated by the Committee as the date of grant, provided that in no event shall the date of grant be earlier than the date on which the Committee approves the grant. 
  
 (ii) Option Price. The Option Price per Unit shall be the fair market
value of a Unit as determined by the Committee on the date of the grant of the Option. 
  
 (iii) Option Period. The term of each Option shall be fixed by the Committee in its sole discretion and set forth in the Award Agreement. 
  
 (iv) Vesting; Exercisability. Options shall vest and be exercisable either in full or in installments at such time or
times as determined by the Committee at or subsequent to grant, and set forth in the Award Agreement; provided that the Committee may in its sole discretion subsequent to grant waive any restriction on the exercise of an Option. 
  
 (v) Method of Exercise. An Option shall be exercised by the delivery
to the Company (or an agent of the Company) during the period in which such Option is exercisable of (x) written notice of exercise in a form acceptable to the Committee for a specific number of Units subject to the Option and (y) payment in full of
the Option Price of such specific number of Units. Payment for the Units with respect to which an Option is exercised may be made by any one or more of the following means: 
  
 (a) cash, negotiable personal check or electronic funds transfer; or 
  
 (b) the Committee in its sole discretion may permit payment through tender of
Mature Units, valued at their Fair Market Value (as determined by the Committee) on the date of exercise; provided that the Committee may impose whatever restrictions it deems necessary or desirable with respect to such method of payment.

  
 (vi) Form of Settlement. In its sole discretion, the
Committee may provide, at the time of grant, that the Units to be issued upon an Option’s exercise shall be in the form of Restricted Units or other similar securities, or may reserve the right so to provide after the time of grant. 

 
 (vii) Discretionary Unit Withholding. ***[Note this is something we
would only want to offer after we were relatively cash rich. It would allow employee to exercise without payment of withholding taxes in cash, but the Company would then have to make the required tax payments. ] The Committee, in its sole
discretion, 
  

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may provide that when taxes are to be withheld in connection with the exercise of an Option by delivering Units in payment of the exercise price or upon the
lapse of restrictions on Restricted Units received upon the exercise of an Option (the date on which such exercise occurs or such restrictions lapse hereinafter referred to as the “Tax Date”), the Optionee may elect to make payment for the
withholding of federal, state and local taxes, including Social Security and Medicare (“FICA”) taxes, up to the Optionee’s marginal tax rate, by one or both of the following methods: 
  
 (a) delivering part or all of the payment in previously-owned Mature Units
(which shall be valued at their Fair Market Value on the Tax Date); 
  
 (b) requesting the Company to withhold from those Units that would otherwise be received upon exercise of the Option, or upon the lapse of restrictions on Restricted Units, a number of Units having a Fair Market Value on the Tax Date equal
to the amount to be withheld. 
  
 The Committee in its sole discretion may provide
that the amount of tax withholding to be satisfied by withholding Units from the Option exercise shall be the minimum amount of taxes, including FICA taxes, required to be withheld under federal, state and local law, or shall be the entire amount of
taxes, including FICA taxes, required to be paid by Optionee under federal, state and local law. An election by an Optionee under this subsection is irrevocable. Any fractional unit amount and any additional withholding not paid by the withholding
or surrender of Units must be paid in cash. If no timely election is made, cash must be delivered to satisfy all tax withholding requirements. 
  
 SECTION 7. RESTRICTED UNITS. 
  
 (a) Issuance. The Committee may issue Restricted Unit Awards to Participants, for no cash consideration or for such minimum consideration as may be
required by applicable law, either alone or in addition to other Awards granted under the Plan. 
  
 (b) Registration. Any Restricted Units may be evidenced in such manner as the Committee in its sole discretion shall deem appropriate, including
book-entry registration or issuance of a certificate or certificates. In the event any certificate is issued in respect of Restricted Units awarded under the Plan, such certificate shall be registered in the name of the Participant, shall bear an
appropriate legend referring to the terms, conditions, and restrictions applicable to such Award, and shall be held in escrow by the Company. The Participant shall execute a power or powers assigning the Restricted Units back to the Company, which
powers shall be held in escrow by the Company and used only in the event of the forfeiture of any of the Restricted Units. 
  

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 (c) Forfeiture. Except as otherwise determined by the Committee, no Restricted Units shall become
free of restrictions prior to the date of the first anniversary of the grant of the Restricted Units. Unrestricted Units, evidenced in such manner as the Committee shall deem appropriate, shall be issued to the Participant promptly upon lapse of the
period of forfeiture, as determined or modified by the Committee. 
  
 (d) Unit Withholding. The Committee, in its sole discretion, may provide that a Participant who recognizes income under the federal income tax by reason of the lapsing of restrictions on Restricted Units may elect Unit withholding
pursuant to Section 6(b)(vi). 
  
 SECTION 8. TERMINATION OF
EMPLOYMENT. Except as otherwise provided in this Section, all Awards not vested shall terminate upon a Participant’s Termination of Employment. For purposes of this Section, a Participant’s Termination of Employment occurs on the last
day on which the Participant performs services as an Employee or, if earlier, on the date on which an Affiliate which employs the Participant ceases to be an Affiliate (unless the Participant continues to be employed by the Company or another
Affiliate). 
  
 (a) Options. Except as otherwise provided
in this Section, upon a Participant’s Termination of Employment, all Options not vested and exercisable immediately before such Termination of Employment shall terminate and no Option may be exercised after such Termination of Employment.

  
 (i) If Termination of Employment occurs for a reason other
than retirement, death, or disability, Options which were vested and exercisable immediately before such Termination of Employment shall remain exercisable for a period of 120 days following such Termination of Employment and shall then terminate.

  
 (ii) If Termination of Employment occurs by reason of
retirement, death or disability, Options which were vested and exercisable immediately before such Termination of Employment shall remain exercisable for a period of one year following such Termination of Employment and shall then terminate.

  
 (b) Restricted Units. Except as otherwise provided in
this Section, upon a Participant’s Termination of Employment, all Restricted Units still subject to restrictions shall be forfeited by the Participant (and the Participant shall sign any document and take any other action required to assign
such Units back to the Company) and reacquired by the Company. 
  

 8 

 (c) Waiver by Committee. Notwithstanding the foregoing provisions of this Section, the Committee may, in its sole
discretion, as to all or part of any Award as to any Participant, at the time the Award is granted or thereafter, determine that Awards shall become exercisable or vested upon a Termination of Employment, determine that Awards shall continue to
become exercisable or vested in full or in installments after Termination of Employment, and extend the period for exercise of Options following Termination of Employment by an additional year. 
  
 SECTION 9. TRANSFERABILITY OF AWARDS. 
  
 (a) No Award shall be transferable by the Participant otherwise than upon
death by will or under the applicable laws of descent and distribution; except that a Participant may, by written instrument in a manner specified by the Committee in the Award Agreement or thereafter, designate in writing a beneficiary to exercise
an Option after the death of the Participant. 
  
 (b) Following
the transfer of an Option to a Permitted Transferee, the Permitted Transferee shall have all of the rights and obligations of the Participant to whom the Option was granted and such Participant shall not retain any rights with respect to the
transferred Option, except that (i) the payment of any tax attributable to the exercise of the Option shall remain the obligation of the Participant, and (ii) the period during which the Option shall become exercisable or remain exercisable under
shall depend on the employment status of the original Participant. 
  
 (c) If for any reason an Option is exercised by a person other than the original Participant, the person exercising or receiving payment or distribution under such Award shall, as a condition to such exercise or receipt, supply the
Committee with such evidence as the Committee may reasonably require to establish the identity of such person and such person’s right to exercise or receive payment or distribution under such Award. 
  
 (d) No Award shall be assigned, negotiated or pledged in any way (whether by
operation of law or otherwise) except as permitted by Section 9(a), and no Award shall be subject to execution, attachment or similar process. 
  
 SECTION 10. CHANGE IN CONTROL. 
  
 (a) In order to maintain the Participants’ rights in the event of any Change in Control of the Company, as hereinafter defined, the Committee, as
constituted before such Change in Control, may, in its sole discretion, as to any Award, either at the time an Award is made or any time thereafter, take any one or more of the following actions: (i) provide for the acceleration of any time periods
relating to the exercise or realization of any such Award so that such Award may be exercised or realized in full on or before a date fixed by the Committee; (ii) provide for the purchase of any such Award with or without the Participant’s
consent for an amount of cash equal to the amount that could have been attained upon the exercise of such Award or realization of the Participant’s rights had such Award been currently 

  

 9 

 
exercisable or payable or exercisable or payable during a stipulated period prior to the Change of Control; (iii) make such adjustment to any such Award then
outstanding as the Committee deems appropriate to reflect such Change in Control; or (iv) cause any such Award then outstanding to be assumed, or new rights substituted therefor, by the acquiring or surviving corporation after such Change in
Control. The Committee may, in its discretion, include such further provisions and limitations respecting a Change in Control in any Award Agreement as it may deem equitable and in the best interests of the Company. 
  
 (b) A “Change in Control” shall be deemed to have occurred if:

  
 (i) any person or group shall have become after the Effective
Date, the beneficial owner, directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding voting securities; or 
  
 (ii) the members of the Company shall have approved a merger, consolidation
or dissolution of the Company, or a sale, lease, exchange or disposition of all or substantially all of the Company’s assets, if persons who were the beneficial owners of the combined voting power of the Company’s voting securities
immediately before any such merger, consolidation, dissolution, sale, lease, exchange or disposition do not immediately thereafter beneficially own, directly or indirectly, in substantially the same proportions, more than 50% of the combined voting
power of the entity resulting from any such transaction. 
  
 SECTION 11. AMENDMENTS AND TERMINATION. The Board may amend, alter or discontinue the Plan, but no amendment, alteration, or discontinuation shall be made that would impair the rights of a Participant under an Award theretofore
granted without the Participant’s consent except as required to comply with securities, tax or other laws. 
  
 The Committee may amend the terms of any Award theretofore granted, prospectively or retroactively, but no such amendment shall adversely affect the
rights of any Participant without the Participant’s consent, except as required to comply with securities, tax or other laws. 
  
 SECTION 12. GENERAL PROVISIONS. 
  
 (a) The term of each Award shall be for such period of months or years from the date of its grant as may be determined by the Committee. 
  
 (b) No Employee or Participant shall have any claim to be granted any Award
under the Plan and there is no obligation for uniformity of treatment of Employees or Participants under the Plan. 
  

 10 

 (c) The prospective recipient of any Award under the Plan shall not, with respect to such Award, be
deemed to have become a Participant, or to have any rights with respect to such Award, until and unless the Committee shall have executed an Award Agreement evidencing the Award and delivered a fully executed copy thereof to the Participant.

  
 (d) Nothing contained in the Plan or in any Award Agreement
shall confer upon any Participant any right with respect to continuance of employment by the Company or its Affiliates, nor interfere in any way with the right of the Company or its Affiliates to terminate the Participant’s employment or change
the Participant’s compensation at any time. 
  
 (e) Any
certificates for Units delivered under the Plan pursuant to any Award shall be subject to such restrictions as the Committee may deem advisable under any applicable Federal or state securities laws, rules and regulations, and the Committee may cause
a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. 
  
 (f) Receipt of an Option or other Award shall not entitle any Participant (or Permitted Transferee) to any rights as a member of the Company unless and
until such Option has been exercised or such other Award shall have been paid and the Units purchased or paid thereunder shall have been issued; provided, however, that the recipient of a Restricted Units Award shall be entitled to all rights of a
member of the Company upon issuance of such Restricted Units pursuant to Section 7(b) except to the extent otherwise provided in the restrictions or other provisions of the Award Agreement pursuant to which such Restricted Unit Award is made.

  
 (g) Except as otherwise required in any applicable Award
Agreement or by the terms of the Plan, recipients of Awards under the Plan shall not be required to make any payment or provide consideration other than the rendering of services. 
  
 (h) In the event of any merger, reorganization, consolidation, recapitalization, stock dividend, stock split, spin-off or
other change in corporate structure affecting the Units, such adjustment shall be made in the aggregate number and class of Units which may be delivered under the Plan, in the number, class and option price of Units subject to outstanding Options
granted under the Plan, and in the value of, or number or class of Units subject to, Awards granted under the Plan as may be determined to be appropriate by the Committee, in its sole discretion, provided that the number of Units subject to any
Award shall always be a whole number. The grant of Awards shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes in its capital or business structure or to merge or to
consolidate or to dissolve, liquidate, or sell or transfer all or any part of its business or assets. 
  
 (i) The Company is authorized to withhold from any Award granted under the Plan or any other amount owing from the Company to the Participant (whether or
not for payment of compensation) the amount of withholding taxes due with respect to 

  

 11 

 
an Award or payment hereunder and to take such other action as may be necessary in the opinion of the Company to satisfy all obligations for the payment of
such taxes. The Company, in its sole discretion, may accept the delivery of Units by a Participant in payment for the withholding of federal, state and local taxes up to the Participant’s marginal tax rates. 
  
 (j) 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 Colorado. 
  
 (k) If any provision of this Plan is or becomes or is deemed invalid, illegal or unenforceable in any jurisdiction, 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 construed or deemed amended without, in the determination of the Committee, materially
altering the intent of the Plan, it shall be stricken and the remainder of the Plan shall remain in full force and effect. 
  
 (l) All obligations of the Company under the Plan shall be binding on any successor to the Company. 
  
 (m) The adoption of this Plan shall not amend or terminate any outstanding
option or warrant and the aggregate number of Units available hereunder shall not be increased or reduced by any such outstanding options or warrants. 
  
 SECTION 13. TERM OF PLAN. The initial term of this Plan shall be ten years. The Board reserves the right to terminate and/or extend the Plan at any
time. 
  
 Adopted by the Management Committee of the Company on September 15,
2004. 
  

	
	
	 / Douglas D. Foote /
  

	Secretary

  

 12Form of 2005 Stock Incentive Plan

 Exhibit 10.3 
  
 SOUND SURGICAL TECHNOLOGIES INC. 
 2005 STOCK INCENTIVE PLAN 
  
 This is the 2005 Stock Incentive Plan of Sound Surgical Technologies Inc., a Delaware corporation, 
 dated December 15, 2004 and to
become effective January 1, 2005. 
  
 1. Purposes of the Plan. The purposes
of this Plan are: 
  
 (a) to attract and retain the best
available personnel for positions of substantial responsibility, 
  
 (b) to provide additional incentive to selected key Employees, Consultants and Directors, and 
  
 (c) to promote the success of the Company’s business. 
  
 2. Definitions. For the purposes of this Plan, the following terms will have the following meanings: 
  
 (a) “Administrator” means the Board or any of its Committees that administer the Plan, in accordance with
Section 4. 
  
 (b) “Applicable Laws” means the
legal requirements relating to the administration of and issuance of securities under stock incentive plans, including, without limitation, the requirements of state corporations law, federal and state securities law, federal and state tax law, and
the requirements of any stock exchange or quotation system upon which the Shares may then be listed or quoted. For all purposes of this Plan, references to statutes and regulations shall be deemed to include any successor statutes and regulations,
to the extent reasonably appropriate as determined by the Administrator. 
  
 (c) “Board” means the Board of Directors of the Company. 
  
 (d) “Cause” shall have the meaning set forth in a Grantee’s employment or consulting agreement with the Company (if any), or if not
defined therein, shall mean (i) acts or omissions by the Grantee which constitute intentional material misconduct or a knowing violation of a material policy of the Company or any of its subsidiaries, (ii) the Grantee personally receiving a benefit
in money, property or services from the Company or any of its subsidiaries or from another person dealing with the Company or any of its subsidiaries, in material violation of applicable law or Company policy, (iii) an act of fraud, conversion,
misappropriation, or embezzlement by the Grantee or his conviction of, or entering a guilty plea or plea of no contest with respect to, a felony, or the equivalent thereof (other than DUI), or (iv) any material misuse or improper disclosure of
confidential or proprietary information of the Company. 
  
 (e)
“Code” means the Internal Revenue Code of 1986, as amended. For all purposes of this Plan, references to Code sections shall be deemed to include any successor Code sections, to the extent reasonably appropriate as determined by the
Administrator. 
  
 (f) “Committee” means a
Committee appointed by the Board in accordance with Section 4. 
  
 (g) “Common Stock” means the common stock, $0.0001 par value per share, of the Company. 
  
 (h) “Company” means Sound Surgical Technologies Inc., a Delaware corporation. 
  
 (i) “Consultant” means any natural person, including an
advisor, engaged by the Company or a Parent or Subsidiary to render bona fide services and who is compensated for such services, provided that the term “Consultant” does not include (i) Employees, (ii) Directors who are paid only a
director’s fee by the Company or who are not compensated by the Company for their services as Directors or (iii) any person who provides services in connection with the offer or sale of securities in a capital-raising transaction, or who
directly or indirectly promotes or maintains a market for the securities of the Company. 

 (j) “Continuous Status as an Employee, Director or Consultant” means that the
employment, director or consulting relationship is not interrupted or terminated by the Company, any Parent or Subsidiary, or by the Employee, Director or Consultant. Continuous Status as an Employee, Director or Consultant will not be considered
interrupted in the case of: (i) any leave of absence approved by the Board or required by Applicable Law, including sick leave, military leave, or any other personal leave, provided, that for purposes of Incentive Stock Options, any such
leave may not exceed 90 days, unless reemployment upon the expiration of such leave is guaranteed by contract (including certain Company policies) or statute; (ii) transfers between locations of the Company or between the Company, its Parent, its
Subsidiaries or its successor, or (iii) in the case of a Nonqualified Stock Option or Stock Award, the ceasing of a person to be an Employee while such person remains a Director or Consultant, the ceasing of a person to be a Director while such
person remains an Employee or Consultant, or the ceasing of a person to be a Consultant while such person remains an Employee or Director. 
  
 (k) “Director” means a member of the Board. 
  
 (l) “Disability” means total and permanent disability as defined in Section 22(e)(3) of the Code. 
  
 (m) “Employee” means any person, including Officers and
Directors employed as a common law employee by the Company or any Parent or Subsidiary of the Company. Neither service as a Director nor payment of a director’s fee by the Company will be sufficient, in and of itself, to constitute
“employment” by the Company. 
  
 (n) “Exchange
Act” means the Securities Exchange Act of 1934, as amended. 
  
 (o) “Fair Market Value” means, as of any date, the value of Common Stock determined as follows: 
  

	 	(i)	If the Common Stock is listed on any established stock exchange or a national market system, including without limitation, the National Market System of Nasdaq, the Fair Market
Value of a Share of Common Stock will be (A) the closing sales price for such stock (or the closing bid, if no sales are reported) as quoted on that system or exchange (or the system or exchange with the greatest volume of trading in Common Stock)
on the last market trading day prior to the day of determination, or (B) any sales price for such stock (or the closing bid, if no sales are reported) as quoted on that system or exchange (or the system or exchange with the greatest volume of
trading in Common Stock) on the day of determination, as the Administrator may select, as reported in the Wall Street Journal or any other source the Administrator considers reliable. 

  

	 	(ii)	If the Common Stock is quoted on the Nasdaq System (but not on the Nasdaq National Market System) or is regularly quoted by recognized securities dealers but selling prices are not
reported, the Fair Market Value of a Share of Common Stock will be the mean between the high bid and low asked prices for the Common Stock on (A) the last market trading day prior to the day of determination, or (B) the day of determination, as the
Administrator may select, as reported in the Wall Street Journal or any other source the Administrator considers reliable. 

	 	(iii)	If the Common Stock is not traded as set forth above, the Fair Market Value will be determined in good faith by the Administrator with reference to the earnings history, book value
and prospects of the Company in light of market conditions generally, and any other factors the Administrator considers appropriate, such determination by the Administrator to be final, conclusive and binding. 

  
 (p) “Family Member” means any child, stepchild, grandchild,
parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, any person sharing the Grantee’s
household (other than a tenant or employee), a trust in which these persons (or the Grantee) control the management of assets, and any other entity in which these persons (or the Grantee) own more than fifty percent of the voting interests.

  
 (q) “Grant Notice” shall mean a written
notice evidencing certain terms and conditions of an individual Option grant. The Grant Notice is part of the Option Agreement. 
  
 (r) “Grantee” shall mean (i) any Optionee or (ii) any Employee, Consultant or Director to whom a Stock Award has been granted pursuant to
this Plan. 
  
 (s) “Incentive Stock Option” means
an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder. 
  
 (t) “Nasdaq” means the National Association of Securities Dealers, Ltd. Automated Quotation System. 
  
 (u) “Nonqualified Stock Option” means an Option not intended
to qualify as an Incentive Stock Option. 
  
 (v)
“Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 
  
 (w) “Option” means a stock option granted under this Plan. 
  
 (x) “Option Agreement” means a written agreement between the
Company and an Optionee evidencing the terms and conditions of an individual Option grant. Each Option Agreement is subject to the terms and conditions of this Plan. 
  
 (y) “Option Exchange Program” means a program in which outstanding Options are surrendered in exchange for
Options with a lower exercise price. 
  
 (z) “Optioned
Stock” means the Common Stock subject to an Option. 
  
 (aa) “Optionee” means an Employee, Consultant or Director who holds an outstanding Option. 
  
 (bb) “Parent” means a “parent corporation” with respect to the Company, whether now or later existing, as defined in Section
424(e) of the Code. 

 (cc) “Plan” means the Company’s 2005 Stock Option Plan as set forth herein.

  
 (dd) “Section” means, except as otherwise
specified, a section of this Plan. 
  
 (ee)
“Share” means a share of the Common Stock, as adjusted in accordance with Section 15. 
  
 (ff) “Stock Award” shall mean a grant or sale by the Company of a specified number of Shares upon terms and conditions determined by the
Administrator. 
  
 (gg) “Subsidiary” means (i) a
“subsidiary corporation” with respect to the Company, whether now or later existing, as defined in Section 424(f) of the Code, or (ii) a limited liability company, whether now or later existing, which would be a “subsidiary
corporation” with respect to the Company under Section 424(f) of the Code if it were a corporation. 
  
 3. Stock Subject to the Plan. The Shares may be authorized but unissued Shares of Common Stock, except as otherwise provided in this Section 3 below. Subject to the provisions of Section 15 of the Plan, the
maximum aggregate number of Shares which may be issued under the Plan will be Shares of Common Stock, plus an annual increase on the first day of each fiscal year during the term of the Plan, with the first such increase occurring on January 1,
2006, in each case in an amount equal to the lesser of (i) 500,000 Shares, (ii) 10% of the outstanding Shares on the last day of the immediately preceding year, or (iii) an amount determined by the Board. The limitations of this Section 3 shall be
subject to adjustment pursuant to Section 15. The number of Shares that are subject to Options or other rights outstanding at any time under the Plan shall not exceed the number of Shares which then remain available for issuance under the Plan. The
Company, during the term of the Plan, shall at all times reserve and keep available sufficient Shares to satisfy the requirements of the Plan. 
  
 If an Option expires or becomes unexercisable without having been exercised in full, or is surrendered pursuant to an Option Exchange Program, or if a
Stock Award shall be cancelled or surrendered or expire for any reason without having been received in full, the Shares that were not purchased or received or that were cancelled will become available for future grant or sale under the Plan (unless
the Plan has terminated). If the Company repurchases Shares which were issued pursuant to the exercise of an Option or grant of a Stock Award, however, those repurchased Shares will not be available for future grant under the Plan. 
  
 4. Administration of the Plan. 
  
 (a) Procedure. 
  

	 	(i)	Composition of the Administrator. Unless the Board expressly resolves to the contrary, the Plan will be administered only by a Committee, which will then consist solely of
persons appointed by the Board, each of whom will be “independent directors” within the meaning of Rule 10A-3 promulgated under the Exchange Act and “outside directors” within the meaning of Section 162(m) of the Code; provided,
however, the failure of the Committee to be composed solely of individuals who are both “independent directors” and “outside directors” shall not render ineffective or void any awards or grants made by, or other actions taken by,
such Committee. 

  

	 	(ii)	Multiple Administrative Bodies. The Plan may be administered by different bodies with respect to Directors, Officers who are not Directors, and Employees and Consultants who
are neither Directors nor Officers. 

 (b) Powers of the Administrator. Subject to the provisions of the Plan, and in the case of a
Committee, subject to the specific duties delegated by the Board to that Committee, the Administrator will have the authority, in its discretion: 
  

	 	(i)	to determine the Fair Market Value of the Common Stock, in accordance with Section 2(o); 

  

	 	(ii)	to select the Consultants, Employees or Directors to whom Options or Stock Awards may be granted; 

  

	 	(iii)	to determine whether and to what extent Options or Stock Awards are granted, and whether Options are intended as Incentive Stock Options or Nonqualified Stock Options;

  

	 	(iv)	to determine the number of Shares to be covered by each Option or Stock Award granted; 

  

	 	(v)	to approve forms of Grant Notices, Option Agreements and agreements governing Stock Awards; 

  

	 	(vi)	to determine the terms and conditions, not inconsistent with the terms of this Plan, of any grant of Options or Stock Awards, including, but not limited to, (A) the Options’
exercise price, (B) the time or times when Options may be exercised or Stock Awards will be vested, which may be based on performance criteria or other reasonable conditions such as Continuous Status as an Employee, Director or Consultant, (C) any
vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any Option, Optioned Stock or Stock Award, based in each case on factors that the Administrator determines in its sole discretion, including but
not limited to a requirement subjecting the Optioned Stock or Shares to (1) certain restrictions on transfer (including without limitation a prohibition on transfer for a specified period of time and/or a right of first refusal in favor of
the Company), and (2) a right of repurchase in favor of the Company upon termination of the Grantee’s Continuous Status as an Employee, Director or Consultant; 

  

	 	(vii)	to reduce the exercise price of any Option to the Fair Market Value at the time of the reduction, if the Fair Market Value of the Common Stock covered by that Option has declined
since the date it was granted; 

  

	 	(viii)	to accelerate the vesting or exercisability of an Option or Stock Award; 

  

	 	(ix)	to determine the terms and restrictions applicable to Options or Stock Awards; 

	 	(x)	to modify or amend each Option or Stock Award, subject to Section 17(c); 

  

	 	(xi)	to authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Option previously granted by the Administrator;

  

	 	(xii)	to institute an Option Exchange Program; 

  

	 	(xiii)	to construe and interpret the terms of this Plan; 

  

	 	(xiv)	to prescribe, amend, and rescind rules and regulations relating to the administration of this Plan; and 

  

	 	(xv)	to make all other determinations it considers necessary or advisable for administering this Plan. 

  
 (c) Effect of Administrator’s Decision. The Administrator’s decisions, determinations and interpretations
will be final and binding on all holders of Options or Stock Awards. The Administrator shall not be required to exercise its authority or discretion on a uniform or nondiscriminatory basis. 
  
 5. Eligibility. Options granted under this Plan may be Incentive Stock Options or
Nonqualified Stock Options, as determined by the Administrator at the time of grant. Nonqualified Stock Options and Stock Awards may be granted to Employees, Consultants and Directors. Incentive Stock Options may be granted only to Employees;
provided, however, that Incentive Stock Options shall not be granted to Employees of a Subsidiary that is a limited liability company unless such limited liability company is wholly-owned by the Company or by a Subsidiary that is a corporation. If
otherwise eligible, an Employee, Consultant or Director who has been granted an Option or a Stock Award may be granted additional Options or Stock Awards. 
  
 6. Limitations on Grants of Incentive Stock Options. Each Option will be designated in the Grant Notice as either an Incentive Stock Option or a Nonqualified Stock
Option. However, notwithstanding such designations, if the Shares subject to an Optionee’s Incentive Stock Options (granted under all plans of the Company or any Parent or Subsidiary), which become exercisable for the first time during any
calendar year, have a Fair Market Value in excess of $100,000, the Options accounting for this excess will be treated as Nonqualified Stock Options. Furthermore, if an Option is designated as an Incentive Stock Option but the recipient is not
eligible to receive an Incentive Stock Option or the option terms or exercise otherwise disqualify such Option for treatment as an Incentive Stock Option, such Option shall be treated for all purposes as a Nonqualified Stock Option. For purposes of
this Section 6, Incentive Stock Options will be taken into account in the order in which they were granted, and the Fair Market Value of the Shares will be determined as of the time of grant. 
  
 7. Limit on Annual Grants to Individuals. No Optionee may receive grants, during any
fiscal year of the Company or portion thereof, of Options which, in the aggregate, cover more than 200,000 Shares, subject to adjustment as provided in Section 15. If an Option expires or terminates for any reason without having been exercised in
full, the unpurchased shares subject to that expired or terminated Option will continue to count against the maximum numbers of shares for which Options may be granted to an Optionee during any fiscal year of the Company or portion thereof.

  
 8. Term of the Plan. Subject to Section 21, the amendments and
restatements to this Plan will become effective upon the earlier to occur of its adoption by the Board or its approval by the shareholders of the Company as described in Section 21. It will continue in effect through December 9, 2014, ten years from
the date of its initial adoption, unless terminated earlier under Section 17. Unless otherwise provided in this Plan, its termination will not affect the validity of any Option or Stock Award outstanding at the date of termination, which shall
continue to be governed by the terms of this Plan as though it remained in effect. 

 9. Term of Option. The term of each Option will be stated in the Option Agreement; provided,
however, that in no event may the term be more than ten years from the date of grant. In addition, in the case of an Incentive Stock Option granted to an Optionee who, at the time the Incentive Stock Option is granted, owns stock representing
more than ten percent of the voting power of all classes of capital stock of the Company or any Parent or Subsidiary, the term of the Incentive Stock Option will be five years from the date of grant or any shorter term specified in the Option
Agreement. 
  
 10. Option Exercise Price and Consideration. 
  
 (a) Exercise Price of Incentive Stock Options. The exercise price for
Shares to be issued pursuant to exercise of an Incentive Stock Option will be determined by the Administrator provided that the per Share exercise price will be no less than 100% of the Fair Market Value per Share on the date of grant; provided,
further that in the case of an Incentive Stock Option granted to an Employee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent of the voting power of all classes of capital stock of the Company or
any Parent or Subsidiary, the per Share exercise price will be no less than 110% of the Fair Market Value per Share on the date of grant. 
  
 (b) Exercise Price of Nonqualified Stock Options. In the case of a Nonqualified Stock Option, the exercise price for Shares to be issued pursuant
to the exercise of any such Option will be determined by the Administrator. 
  
 (c) Waiting Period and Exercise Dates. At the time an Option is granted, the Administrator will fix the period within which the Option may be exercised and will determine any conditions which must be satisfied
before the Option may be exercised. Exercise of an Option may be conditioned upon performance criteria or other reasonable conditions such as Continuous Status as an Employee, Director or Consultant. 
  
 (d) Form of Consideration. The Administrator will determine the
acceptable form of consideration for exercising an Option, including the method of payment. Such consideration may consist partially or entirely of: 
  

	 	(i)	cash; 

  

	 	(ii)	to the extent permitted by Applicable Law, a promissory note made by the Optionee in favor of the Company; 

  

	 	(iii)	other Shares which have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which an Option will be exercised;

  

	 	(iv)	delivery of a properly executed exercise notice together with any other documentation as the Administrator and the Optionee’s broker, if applicable, require to effect an
exercise of the Option and delivery to the Company of the sale or loan proceeds required to pay the exercise price; or 

  

	 	(v)	any other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws. 

 11. Exercise of Option. 
  

(a) Procedure for Exercise; Rights as a Shareholder. Any Option granted hereunder will be exercisable according to the terms of the Plan and at
times and under conditions determined by the Administrator and set forth in the Option Agreement; provided, however, that an Option may not be exercised for a fraction of a Share. 
  
 An Option will be deemed exercised when the Company receives: (i) written
notice of exercise (in accordance with the Option Agreement) from the person entitled to exercise the Option, (ii) full payment for the Shares with respect to which the Option is exercised, and (iii) all representations, indemnifications and
documents reasonably requested by the Administrator. Full payment may consist of any consideration and method of payment authorized by the Administrator and permitted by the Option Agreement and this Plan. Shares issued upon exercise of an Option
will be issued in the name of the Optionee or, if requested by the Optionee, in the name of the Optionee and his or her spouse. Until the stock certificate evidencing such Shares is issued (as evidenced by the appropriate entry on the books of the
Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a shareholder will exist with respect to the Optioned Stock, notwithstanding the exercise of the Option. Subject to the
provisions of Sections 14, 18, and 19, the Company will issue (or cause to be issued) such stock certificate promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the
date the stock certificate is issued, except as provided in Section 15 of the Plan. Notwithstanding the foregoing, the Administrator in its discretion may require the Company to retain possession of any certificate evidencing Shares of Common Stock
acquired upon exercise of an Option, if those Shares remain subject to repurchase under the provisions of the Option Agreement or any other agreement between the Company and the Optionee, or if those Shares are collateral for a loan or obligation
due to the Company. 
  
 Exercising an Option in any manner will
decrease the number of Shares thereafter available, both for purposes of this Plan and for sale under the Option, by the number of Shares as to which the Option is exercised. 
  
 (b) Termination of Employment or Consulting Relationship or Directorship. If an Optionee holds exercisable Options on
the date his or her Continuous Status as an Employee, Director or Consultant terminates (other than because of termination due to Cause, death or Disability), the Optionee may exercise the Options that were vested and exercisable as of the date of
termination for a period of 90 days following such termination (or such other period as is set forth in the Option Agreement or determined by the Administrator). If the Optionee is not entitled to exercise his or her entire Option at the date of
such termination, the Shares covered by the unexercisable portion of the Option will revert to the Plan, unless otherwise set forth in the Option Agreement or determined by the Administrator. The Administrator may determine in its sole discretion
that such unexercisable portion of the Option will become exercisable at such times and on such terms as the Administrator may determine in its sole discretion. If the Optionee does not exercise an Option within the time specified above after
termination, that Option will expire, and the Shares covered by it will revert to the Plan, unless otherwise set forth in the Option Agreement or determined by the Administrator. 
  
 (c) Disability of Optionee. If an Optionee holds exercisable Options on the date his or her Continuous Status as an
Employee, Director or Consultant terminates because of Disability, the Optionee may exercise the Options that were vested and exercisable as of the date of termination for a period of 12 months following such termination (or such other period as is
set forth in the Option Agreement or determined by the Administrator). If the Optionee is not entitled to exercise his or her entire Option at the date of such termination, the Shares covered by the unexercisable portion of the Option will revert to
the Plan, unless otherwise set forth in the Option Agreement or determined by the Administrator. The Administrator may determine in its sole discretion that such unexercisable portion of the Option will become exercisable at such times and on such
terms as the Administrator may determine in its sole discretion. If the Optionee does not exercise an Option within the time specified above after termination, that Option will expire, and the Shares covered by it will revert to the Plan, unless
otherwise set forth in the Option Agreement or determined by the Administrator. 

 (d) Death of Optionee. If an Optionee holds exercisable Options on the date his or her death, the
Optionee’s estate or a person who acquired the right to exercise the Option by bequest or inheritance may exercise the Options that were vested and exercisable as of the date of death for a period of 12 months following the date of death (or
such other period as is set forth in the Option Agreement or determined by the Administrator). If the Optionee is not entitled to exercise his or her entire Option at the date of death, the Shares covered by the unexercisable portion of the Option
will revert to the Plan, unless otherwise set forth in the Option Agreement or determined by the Administrator. The Administrator may determine in its sole discretion that such unexercisable portion of the Option will become exercisable at such
times and on such terms as the Administrator may determine in its sole discretion. If the Optionee’s estate or a person who acquired the right to exercise the Option by bequest or inheritance does not exercise an Option within the time
specified above after termination, that Option will expire, and the Shares covered by it will revert to the Plan, unless otherwise set forth in the Option Agreement or determined by the Administrator. 
  
 (e) Termination for Cause. If an Optionee’s Continuous Status as
an Employee, Director or Consultant is terminated for Cause, then all Options (including any vested Options) held by Optionee shall immediately be terminated and cancelled. 
  
 (f) Disqualifying Dispositions of Incentive Stock Options. If Common Stock acquired upon exercise of any Incentive
Stock Option is disposed of in a disposition that, under Section 422 of the Code, disqualifies the holder from the application of Section 421(a) of the Code, the holder of the Common Stock immediately before the disposition will comply with any
requirements imposed by the Company in order to enable the Company to secure the related income tax deduction to which it is entitled in such event. 
  
 12. Non-Transferability of Options. 
  
 (a) No Transfer. An Option may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the
laws of descent or distribution and may be exercised, during the lifetime of the Optionee, only by the Optionee. Notwithstanding the foregoing, to the extent that the Administrator so authorizes at the time a Nonqualified Stock Option is granted or
amended, (i) such Option may be assigned pursuant to a qualified domestic relations order as defined by the Code, and exercised by the spouse or former spouse of the Optionee who obtained such Option pursuant to such qualified domestic relations
order, or (ii) such Option may be assigned, in whole or in part, during the Optionee’s lifetime to one or more Family Members of the Optionee. Rights under the assigned portion may be exercised by the Family Member(s) who acquire a proprietary
interest in such Option pursuant to the assignment. The terms applicable to the assigned portion shall be the same as those in effect for the Option immediately before such assignment and shall be set forth in such documents issued to the assignee
as the Administrator deems appropriate. 
  
 (b) Designation of
Beneficiary. An Optionee may file a written designation of a beneficiary who is to receive any Options that remain unexercised in the event of the Optionee’s death. If a participant is married and the designated beneficiary is not the
spouse, spousal consent will be required for the designation to be effective. The Optionee may change such designation of beneficiary at any time by written notice to the Administrator, subject to the above spousal consent requirement. 

 
 (c) Effect of No Designation. If an Optionee dies and there is no
beneficiary validly designated and living at the time of the Optionee’s death, the Company will deliver such Optionee’s Options to the executor or administrator of his or her estate, or if no such executor or administrator has been
appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such Options to the spouse or to any one or more dependents or relatives of the Optionee, or if no spouse, dependent or relative is known to the Company, then
to such other person as the Company may designate. 
  
 (d)
Death of Spouse or Dissolution of Marriage. If an Optionee designates his or her spouse as beneficiary, that designation will be deemed automatically revoked if the Optionee’s marriage is later dissolved. Similarly, any designation of a
beneficiary will be deemed automatically revoked upon the death 

 of the beneficiary if the beneficiary predeceases the Optionee. Without limiting the generality of the preceding
sentence, the interest in Options of a spouse of an Optionee who has predeceased the Optionee or (except as provided in Section 12(a) regarding qualified domestic relations orders) whose marriage has been dissolved will automatically pass to the
Optionee, and will not be transferable by such former spouse in any manner, including but not limited to such former spouse’s will, nor will any such interest pass under the laws of intestate succession. 
  
 13. Stock Awards. 
  
 (a) Grant. Subject to the express provisions and limitations of the Plan, the Administrator, in its sole and absolute
discretion, may grant Stock Awards to Employees, Consultants or Directors for a number of shares of Common Stock on such terms and conditions and to such Employees, Consultants or Directors as it deems advisable and specifies in the respective
grants. Subject to the limitations and restrictions set forth in the Plan, an Employee, Consultant or Director who has been granted an Option or Stock Award may, if otherwise eligible, be granted additional Options or Stock Awards if the
Administrator shall so determine. 
  
 (b) Restrictions. The
Administrator, in its sole and absolute discretion, may impose restrictions in connection with any Stock Award, including without limitation, (i) imposing a restricted period during which all or a portion of the Common Stock subject to the Stock
Award may not be sold, assigned, transferred, pledged or otherwise encumbered (the “Restricted Period”), (ii) providing for a vesting schedule with respect to such Common Stock such that if a Grantee ceases to be an Employee, Consultant or
Director during the Restricted Period, some or all of the shares of Common Stock subject to the Stock Award shall be immediately forfeited and returned to the Company. The Administrator may, at any time, reduce or terminate the Restricted Period.
Each certificate issued in respect of shares of Common Stock pursuant to a Stock Award which is subject to restrictions shall be registered in the name of the Grantee, shall be deposited by the Grantee with the Company together with a stock power
endorsed in blank and shall bear an appropriate legend summarizing the restrictions imposed with respect to such shares of Common Stock. 
  
 (c) Rights As Shareholder. Subject to the terms of any agreement governing a Stock Award, the Grantee of a Stock Award shall have all the rights of
a shareholder with respect to the Common Stock issued pursuant to a Stock Award, including the right to vote such Shares; provided, however, that dividends or distributions paid with respect to any such Shares which have not vested shall be
deposited with the Company and shall be subject to forfeiture until the underlying Shares have vested unless otherwise provided by the Administrator in its sole discretion. A Grantee shall not be entitled to interest with respect to the dividends or
distributions so deposited. 
  
 14. Withholding Taxes. The Company will
have the right to take whatever steps the Administrator deems necessary or appropriate to comply with all applicable federal, state, local, and employment tax withholding requirements, and the Company’s obligations to deliver Shares upon the
exercise of an Option or in connection with a Stock Award will be conditioned upon compliance with all such withholding tax requirements. Without limiting the generality of the foregoing, upon the exercise of an Option, the Company will have the
right to withhold taxes from any other compensation or other amounts which it may owe to the Optionee, or to require the Optionee to pay to the Company the amount of any taxes which the Company may be required to withhold with respect to the Shares
issued on such exercise. Without limiting the generality of the foregoing, the Administrator in its discretion may authorize the Grantee to satisfy all or part of any withholding tax liability by (a) having the Company withhold from the Shares which
would otherwise be issued in connection with a Stock Award or on the exercise of an Option that number of Shares having a Fair Market Value, as of the date the withholding tax liability arises, equal to or less than the amount of the withholding tax
liability, or (b) by delivering to the Company previously-owned and unencumbered Shares of the Common Stock having a Fair Market Value, as of the date the withholding tax liability arises, equal to or less than the amount of the withholding tax
liability. 

 15. Adjustments Upon Changes in Capitalization, Dissolution, Merger or Asset Sale. 
  
 (a) Changes in Capitalization. Subject to any required action by the
shareholders of the Company, if the outstanding shares of Common Stock are increased, decreased, changed into or exchanged for a different number or kind of shares or securities of the Company or a successor entity, or for other property (including
without limitation, cash), through reorganization, recapitalization, reclassification, stock combination, stock dividend, stock split, reverse stock split, spin off or other similar transaction, an appropriate and proportionate adjustment will be
made in the maximum number and kind of shares as to which Options and Stock Awards may be granted under this Plan. A corresponding adjustment changing the number or kind of shares allocated to Stock Awards or unexercised Options which have been
granted prior to any such change will likewise be made. Any such adjustment in the outstanding Options will be made without change in the aggregate purchase price applicable to the unexercised portion of the Options but with a corresponding
adjustment in the price for each share or other unit of any security covered by the Option. Such adjustment will be made by the Administrator, whose determination in that respect will be final, binding, and conclusive. 
  
 Where an adjustment under this Section 15(a) is made to an Incentive Stock
Option, the adjustment will be made in a manner which will not be considered a “modification” under the provisions of subsection 424(h)(3) of the Code. 
  
 (b) Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, to the extent
that an Option had not been previously exercised or a Stock Award had not previously vested, it will terminate immediately prior to the consummation of such proposed dissolution or liquidation. In such instance, the Administrator may, in the
exercise of its sole discretion, declare that any Stock Award shall become vested or any Option will terminate as of a date fixed by the Administrator and give each Optionee the right to exercise his or her Option as to all or any part of the
Optioned Stock, including Shares as to which the Option would not otherwise be exercisable. 
  
 (c) Corporate Transaction. Upon the occurrence of a merger, reorganization or sale of substantially all of the assets of the Company, the Administrator, may, in its sole discretion, do one or more of the
following: (i) shorten the period during which Options are exercisable (provided they remain exercisable for at least 30 days after the date notice of such shortening is given to the Optionees); (ii) accelerate any vesting schedule to which an
Option or Stock Award is subject; (iii) arrange to have the surviving or successor entity or any parent entity thereof assume the Stock Awards and the Options or grant replacement options with appropriate adjustments in the option prices and
adjustments in the number and kind of securities issuable upon exercise or adjustments so that the Options or their replacements represent the right to purchase the shares of stock, securities or other property (including cash) as may be issuable or
payable as a result of such transaction with respect to or in exchange for the number of Shares of Common Stock purchasable and receivable upon exercise of the Options had such exercise occurred in full prior to such transaction; or (iv) cancel
Options or Stock Awards upon payment to the Optionees or Grantees in cash, with respect to each Option or Stock Award to the extent then exercisable or vested (including, if applicable, any Options or Stock Awards as to which the vesting schedule
has been accelerated as contemplated in clause (ii) above), of an amount that is the equivalent of the excess of the Fair Market Value of the Common Stock (at the effective time of the merger, reorganization, sale or other event) over (in the case
of Options) the exercise price of the Option. The Administrator may also provide for one or more of the foregoing alternatives in any particular Option Agreement or agreement governing a Stock Award. In the event that a nonnegotiated merger or
acquisition of the Company occurs and the Company then maintains a change in control plan (“Change in Control Plan”) that contains provisions which are triggered on such a nonnegotiated change of control, the provisions of the Change in
Control Plan shall govern as to Options and Stock Awards the exercisability, vesting, assumption, or cancellation for cash payment of Options or Stock Awards granted under this Plan; provided, however, that in the event of a conflict between the
terms and provisions of a Change in Control Plan and this Plan, the plan which provides the greater benefit to the Optionees or Grantees shall control; and further provided, that if it is unclear if one plan is more beneficial to the Optionees or
Grantees than the other, then in such instance the Administrator shall make a good faith judgment as to whether the Change in Control Plan or this Plan is more beneficial to the Optionees or Grantees and such determination shall be binding on all
Optionees or Grantees. 

 16. Date of Grant. The date of grant of an Option or Stock Award will be, for all purposes, the date as of which
the Administrator makes the determination granting such Option or Stock Award, or any other, later date determined by the Administrator and specified in the Option Agreement. Notice of the determination will be provided to each Grantee within a
reasonable time after the date of grant. 
  
 17. Amendment and Termination of
the Plan. 
  
 (a) Amendment and Termination. The Board
may at any time amend, alter or suspend or terminate the Plan. 
  
 (b) Stockholder Approval. The Company will obtain stockholder approval of any Plan amendment that increases the number of Shares for which Options or Stock Awards may be granted, or to the extent necessary and desirable to comply
with Section 422 of the Code (or any successor statute) or other Applicable Laws, or the requirements of any exchange or quotation system on which the Common Stock is listed or quoted. Such shareholder approval, if required, will be obtained in such
a manner and to such a degree as is required by the Applicable Law or requirement. 
  
 (c) Effect of Amendment or Termination. No amendment, alteration, suspension or termination of the Plan, including the amendments and restatement effected hereby, will impair the rights of a Grantee, unless
mutually agreed otherwise between the Grantee and the Administrator. Any such agreement must be in writing and signed by the Grantee and the Company. 
  
 18. Conditions Upon Issuance of Shares. 
  
 (a) Legal Compliance. Shares will not be issued in connection with a Stock Award or pursuant to the exercise of an Option unless the exercise of
such Option and the issuance and delivery of such Shares will comply with all Applicable Laws, and will be further subject to the approval of counsel for the Company with respect to such compliance. Any securities delivered under the Plan will be
subject to such restrictions, and the person acquiring such securities will, if requested by the Company, provide such assurances and representations to the Company as the Company may deem necessary or desirable to assure compliance with all
Applicable Laws. To the extent permitted by Applicable Laws, the Plan and Options and Stock Awards granted hereunder will be deemed amended to the extent necessary to conform to such laws, rules and regulations. 
  
 (b) Investment Representation. As a condition to the exercise of an
Option or grant of a Stock Award, the Company may require the person exercising such Option or receiving such Stock Award to represent and warrant at the time of any such exercise or receipt that the Shares are being acquired only for investment and
without any present intention to sell, transfer, or distribute such Shares. 
  
 19. Liability of Company. 
  
 (a) Inability to
Obtain Authority. If the Company cannot, by the exercise of commercially reasonable efforts, obtain authority from any regulatory body having jurisdiction for the sale of any Shares under this Plan, and such authority is deemed by the
Company’s counsel to be necessary to the lawful issuance of those Shares, the Company will be relieved of any liability for failing to issue or sell those Shares. 
  
 (b) Grants Exceeding Allotted Shares. If the Optioned Stock covered by an Option or Shares subject to a Stock Award
exceed, as of the date of grant, the number of Shares which may be issued under the Plan without additional shareholder approval, that Option or Stock Award will be contingent with respect to such excess Shares, unless and until shareholder approval
of an amendment sufficiently increasing the number of Shares subject to this Plan is timely obtained in accordance with Section 17(b). 

 (c) Rights of Participants and Beneficiaries. The Company will pay all amounts payable under this
Plan only to the Grantee, or beneficiaries entitled thereto pursuant to this Plan. The Company will not be liable for the debts, contracts, or engagements of any Grantee or his or her beneficiaries, and rights to cash payments under this Plan may
not be taken in execution by attachment or garnishment, or by any other legal or equitable proceeding while in the hands of the Company. 
  
 20. Reservation of Shares. The Company will at all times reserve and keep available for issuance a number of Shares sufficient to satisfy this Plan’s
requirements during its term. 
  
 21. Stockholder Approval. The amendments
and restatement of this Plan will be subject to approval by the stockholders of the Company within 12 months before or after the date of its adoption. Such stockholder approval will be obtained in the manner and to the degree required under
Applicable Laws. 
  
 22. Legending Stock Certificates. In order to enforce
any restrictions imposed upon Common Stock issued in connection with a Stock Award or upon exercise of an Option granted under this Plan or to which such Common Stock may be subject, the Administrator may cause a legend or legends to be placed on
any certificates representing such Common Stock, which legend or legends will make appropriate reference to such restrictions, including, but not limited to, a restriction against sale of such Common Stock for any period of time as may be required
by Applicable Laws. Additionally, and not by way of limitation, the Administrator may impose such restrictions on any Common Stock issued pursuant to the Plan as it may deem advisable. 
  
 23. No Employment Rights. Neither this Plan nor any Option or Stock Award will confer upon a Grantee any right with respect to
continuing the Grantee’s employment or consulting relationship with the Company, or continuing service as a Director, nor will they interfere in any way with the Grantee’s right or the Company’s right to terminate such employment or
consulting relationship or directorship at any time, with or without cause. 
  
 24. Governing Law. The Plan will be governed by, and construed in accordance with the laws of the State of Delaware without giving effect to conflicts of law principles.

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