Document:

Form of Severance Agreement

 Exhibit 10.20 
  

					
	 Employee
	  	Section 2.01 Base Salary
and Bonus Multiplier	  	 Section 2.03 Welfare
 Benefit Period

	 June S. Almenoff, MD, PhD
	  	2.0	  	2 years 
			
	 Paul S. Covington, MD
	  	1.0	  	1 year
			
	 Gail McIntyre
	  	1.0	  	1 year
			
	 Marshall Woodworth
	  	1.0	  	1 year

 SEVERANCE AGREEMENT 
 THIS SEVERANCE AGREEMENT (the “Agreement”), made as of the          day of
                    , 2010 by and between PPD Therapeutics, Inc., a Delaware corporation with its principal place of business in North
Carolina and its subsidiaries and affiliates (collectively, the “Company”) and                      (“Employee”).

 WHEREAS, Employee and the Company entered into an Employment Agreement of even date herewith and, in connection therewith,
the Company desires to provide the severance benefits hereinafter described in the event of a “Change in Control,” as hereinafter defined, of the Company. 
 NOW, THEREFORE, it is agreed as follows: 
 1. Definitions

 1.01 “AFR” means the interest rate determined under Section 1274 of the Code.

 1.02 “Base Amount” shall have the meaning set forth and shall be determined as provided in
Section 280G of the Code. 
 1.03 “Change in Control” means (i) a transaction or
series of related transactions in which a “person” (as such term is used in Sections 13(d) and 14(d)(2) of the Exchange Act) is or becomes 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 securities; (ii) a sale of substantially all of the assets of the Company; or (iii) a liquidation of the Company. 
 1.04 “Code” means the Internal Revenue Code of 1986 as heretofore or hereafter amended, and any successor
code. References in this agreement to specific sections of the Code shall also include any successor sections. 
 1.05 “Constructive Termination” means a termination of Employee’s employment by the Company during the Covered Period initiated by Employee after (i) a material diminution in the duties of Employee,
(ii) a reduction by the Company in Employee’s base salary in effect on the date of the Change in Control, or (iii) a material change in the geographic location at which Employee must perform services for the Company from prior to
the Change in Control. Constructive Termination specifically does not include termination of Employee by reason of death, Disability or retirement at or after age 65. Employee shall give the Company written notice of a Constructive Termination
within thirty (30) days of the existence of facts giving rise to a Constructive Termination, which notice shall provide a brief description of the circumstances which Employee asserts gives rise to a right of Constructive Termination, and the
Company shall have thirty (30) days from receipt of said notice within which to remedy said circumstances. 

 1.06 “Covered Payment” means the amounts and benefits paid
to Employee pursuant to this Agreement, taken together with any amounts or benefits otherwise paid or distributed to Employee by the Company. 
 1.07 “Covered Period” means the time period commencing on the date of and coincident with a Change of Control and ending one year thereafter. 
 1.08 “Disability” shall have the meaning set forth in Section 4.1.b. of the Employment
Agreement. 
 1.09 “Effective Date” means the date on which the Employment Agreement of even
date herewith between the Company and Employee becomes effective pursuant to the terms thereof. 
 1.10
“Excess Parachute Payment” shall have the meaning set forth and shall be determined as provided in Section 280G of the Code. 
 1.11 “Excise Tax” shall mean the tax imposed under Section 4999 of the Code on an Excess Parachute Payment. 
 1.12 “Executive Consultant” shall mean the executive compensation or comparable consultant used from time to
time by the Company in designing its compensation program for executive and senior management employees of the Company; provided, however, that in its sole discretion the Company may at any time designate its independent auditors as its Executive
Consultant for the purpose of performing any calculations required under Section 2.05 of this Agreement. 
 1.13 “Final Determination” means a final determination by a court of competent jurisdiction or a proceeding of the Internal Revenue Service or its successor agency. 
 1.14 “First Period” means the twelve-month period ending on the Termination Date. 
 1.15 “New Payment Date” shall have the meaning set forth in Section 3 hereof. 
 1.16 “Parachute Payments” shall have the meaning set forth and shall be determined as provided in
Section 280G of the Code. 
 1.17 “Payment Cap” means the maximum amount which may be paid
to Employee under the terms of this Agreement without subjecting Employee to the Excise Tax. 

 1.18 “Payment Date” means the date that is the later of
(a) thirty (30) days following the Termination Date or (b) the date immediately following Employee’s execution of a Release and the expiration of any statutory revocations periods applicable to such Release. 
 1.19 “Release” means a general release of any and all claims related to Employee’s employment with the
Company and/or the termination thereof in favor of the Company and/or its parent company, officers, directors, shareholders, employees and/or any other agents or representatives, in a form acceptable to the Company, and that is executed by Employee
within sixty (60) days of the Termination Date, and which Employee does not revoke (if permitted to do so by applicable law). Any such general release shall expressly exclude any claims related to this Agreement, Employee’s rights
hereunder and the enforcement hereof. 
 1.20 “Stock Awards” means Employee’s outstanding
awards of the Company non-qualified stock options or restricted stock as of the Termination Date. 
 1.21
“Termination for Cause” means a determination by the President of the Company or, if this office is vacant, the Chief Executive Officer, acting in good faith but made in her or his sole discretion, that Employee: (i) deliberately
failed to substantially perform Employee’s duties and responsibilities for the Company or engaged in willful misconduct in Employee’s execution thereof; (ii) maliciously engaged in any act or omission that materially injures, or, in
the opinion of the President or the Chief Executive Officer, as the case may be, has the capacity to materially injure, the business or reputation of the Company; (iii) is determined by an independent tribunal, such as the U.S. Equal Employment
Opportunity Commission (EEOC) or a court of law with competent jurisdiction to have engaged in a form of discrimination or harassment prohibited by law (including, without limitation, discrimination or harassment based on race, color, religion, sex,
national origin, age, disability, and/or genetic information); (iv) misappropriated or embezzled material tangible or intangible property of the Company; (v) materially breached the terms of Annex A and/or B of this Agreement while
employed by the Company; and/or (vi) has been convicted of or pleaded guilty or no contest to a felony (not including a violation of the traffic laws), subject, however, to the Company having first provided Employee with written notice of the
occurrence of any of the events in subsections (i) through (vi) above and Employee’s failure to cure or remedy those events which are capable of being cured within thirty (30) days of Employee’s receipt of such written
notice. 
 1.22 “Termination Date” means the date on which Employee’s employment is
terminated such that Employee is entitled to the compensation and benefits provided for in Section 2 of this Agreement. 

 2. Compensation Upon Change of Control. This Agreement shall become effective
on the Effective Date. If during the Covered Period (i) the Company terminates Employee’s employment for reason other than Termination for Cause (and not due to Employee’s death or Disability or retirement at or after age 65) or
(ii) Employee’s employment is terminated by reason of Constructive Termination, then, in either case further conditioned upon Employee executing a Release, Employee shall be entitled to the following compensation and benefits: 

2.01 Base Salary and Bonus. The Company shall pay Employee an amount equal to
             times the sum of Employee’s (i) base salary for the First Period (determined as if Employee was employed for the entire First Period if employed for less than
the First Period) and (ii) the greater of (x) Employee’s target bonus under the Company incentive cash bonus plan in which Employee is eligible to participate immediately prior to the Termination Date or (y) the average of the
cash bonuses received in the First Period and in the twelve-month period immediately preceding the First Period, said amount to be paid on the Payment Date or New Payment Date, as applicable. 
 2.02 Unpaid and Deferred Compensation. The Company shall pay Employee any bonus or deferred compensation that is not
“nonqualified deferred compensation plan” within the meaning of Section 409A of the Code (whether in the form of cash, stock or otherwise) that is accrued but unpaid as of the Termination Date, said sum to be paid on the Payment Date
or New Payment Date, as applicable. 
 2.03 Benefits. For a period of
                 after the Termination Date, the Company shall continue to pay for and provide welfare benefits which Employee was receiving immediately prior to
the Termination Date, including life insurance, health, medical, dental, vision and wellness, accidental death and dismemberment and disability benefits; provided, however, that the Company’s obligations under this clause shall terminate from
the date that Employee first becomes eligible after the Termination Date for similar coverage under another employer’s plan. 
 2.04 Stock Awards. Notwithstanding anything to the contrary in any agreement for Stock Awards, (i) all unvested shares underlying Stock Awards granted more than six months prior to the
Termination Date shall become fully vested as of the Termination Date, and (ii) Employee shall continue to be treated under each award agreement evidencing a Stock Award as if Employee was an employee of the Company until the first to occur of
(x) the third anniversary of the Termination Date, or (y) the expiration of the exercise period provided for therein; provided, however, in the event of Employee’s death or his disability (as disability is defined in the award
agreement) after the Termination Date, the time for exercise after death or such disability prescribed in the award agreement shall apply. The provisions of this Section 2.04 shall also apply to any and all substitute awards for nonqualified
stock options and restricted stock granted to Employee in exchange for Stock Awards to which this section applies. 
 2.05 Limitation on Payments. 
 a. Application of Section 2.05. If a Covered Payment
hereunder would be an Excess Parachute Payment and would thereby subject Employee to the Excise Tax, the provisions of this Section 2.05 shall apply to determine the amounts payable to Employee pursuant to this Agreement. 

 b. Calculation of Benefits. At least fifteen (15) days prior to
the Payment Date or New Payment Date, as applicable, the Company shall notify Employee of the aggregate present value of all amounts and benefits to which Employee would be entitled under this Agreement and any other plan, program or arrangement
with the Company as of the Termination Date, together with the projected maximum payments, determined as of such Date of Termination, that could be paid without Employee being subject to the Excise Tax. 
 c. Imposition of Payment Cap. If (i) the aggregate value of all amounts and benefits to which Employee would be
entitled under this Agreement and any other plan, program or arrangement with the Company exceeds the amount which can be paid to Employee without Employee incurring an Excise Tax and (ii) Employee would receive a greater net after-tax amount
(taking into account all applicable taxes payable by Employee, including an Excise Tax) by applying the limitation contained in this Section 2.05(c), then the amounts otherwise payable to Employee under this Section 2 shall be reduced to
an amount equal to the Payment Cap. If Employee receives reduced payments and benefits hereunder, Employee shall have the right to designate which of the payments and benefits otherwise provided for in this Agreement that Employee will receive in
connection with the application of the Payment Cap. 
 d. Application of Code Section 280G. The
Executive Consultant shall determine whether any part of the Covered Payment will be subject to the Excise Tax and the amount of such Excise Tax. For purposes of such determination, the Executive Consultant shall take into consideration and be
guided by the following: 
 (i) such Covered Payment will be treated as Parachute Payments and all
Parachute Payments in excess of the Base Amount shall be treated as subject to the Excise Tax, unless and except to the extent that in the good faith judgment of the Executive Consultant, the Company has a reasonable basis to conclude that such
Covered Payment, in whole or in part, either do not constitute Parachute Payments or represent reasonable compensation for personal services actually rendered (within the meaning of Section 280G of the Code) in excess of the Base Amount, or
such Parachute Payments are otherwise not subject to the Excise Tax, and 
 (ii) the value of any noncash
benefits or any deferred payment or benefit shall be determined by the Executive Consultant in accordance with the principles of Section 280G of the Code. 
 (e) Applicable Tax Rates. For purposes of determining whether Employee would receive a greater net after-tax benefit
if the amounts payable under this Agreement are reduced in accordance with Section 2.05(c), Employee shall be deemed to pay: 
 (i) federal income taxes at the highest applicable marginal rate of federal income taxation for the calendar year in which the first amounts are to be paid hereunder, and 

 (ii) any applicable state and local income taxes at the highest
applicable marginal rate of taxation for such calendar year; provided, however, that Employee may request that such determination be made based on Employee’s individual tax circumstances, which shall govern such determination so long as
Employee provides to the Executive Consultant such information and documents as the Executive Consultant shall reasonably request to determine such individual circumstances. 
 (f) Adjustments in Respect to Payment Cap. 
 (i) If Employee receives reduced payments and benefits under Section 2.05 or if Section 2.05 is determined
not to be applicable to Employee because the Executive Consultant concludes that Employee is not subject to any Excise Tax, and it is established pursuant to a Final Determination that, notwithstanding the good faith of Employee and the Company in
applying the terms of this Agreement, the aggregate Parachute Payments paid to Employee or for Employee’s benefit are in an amount that would result in Employee being subject to an Excise Tax and Employee would still be subject to the Payment
Cap under the provisions of Section 2.05(c), then the amount in excess of the Payment Cap shall be deemed for all purposes to be a loan to Employee made on the date of the receipt of such excess payment, which Employee shall have an obligation
to repay to the Company on demand, together with interest at the AFR, from the date of the payment hereunder to the date of repayment by Employee. 
 (ii) If Section 2.05 is not applied to reduce Employee’s entitlements under this Section 2 because the Executive Consultant determines that Employee would not receive a greater net
after-tax benefit by applying Section 2.05 and it is established pursuant to a Final Determination that, notwithstanding the good faith of Employee and the Company in applying the terms of this Agreement, Employee would have received a greater
net after-tax benefit by subjecting Employee’s payments and benefits hereunder to the Payment Cap, then the aggregate Parachute Payments paid to Employee or for Employee’s benefit in excess of the Payment Cap shall be deemed for all
purposes a loan to Employee made on the date of receipt of such excess payments, which Employee shall have an obligation to repay to the Company on demand, together with interest at the AFR, from the date of payment hereunder to the date of
repayment by Employee. 
 (iii) If Employee receives reduced payments and benefits by reason of this
Section 2.05 and it is established pursuant to a Final Determination that Employee could have received a greater amount without exceeding the Payment Cap, then the Company shall promptly thereafter pay Employee the aggregate additional amount
which could have been paid without exceeding the Payment Cap, together with interest on such amount at the AFR, from the original payment due date to the date of actual payment by the Company. 
 3. Section 409A. Notwithstanding anything to the contrary in this Agreement, if at the time of Employee’s
termination of employment with the Company (a) the Company has stock which is publicly-traded on an established securities market and (b) Employee is a “specified employee” within the meaning of Section 409A of the Code,
then no payment, compensation, benefit or entitlement payable or provided to the Employee in connection with his employment termination that is determined, in whole or in part, to constitute a payment from a “nonqualified

 
deferred compensation plan” within the meaning of Section 409A of the Code shall be paid or provided to Employee before the earlier of (i) Employee’s death or (ii) the
day that is six (6) months plus one (1) day after the termination date (the “New Payment Date”). The aggregate of any payments, compensation, benefits and entitlements that otherwise would have been paid to the Employee
during the period between the termination date and the New Payment Date shall be paid to the Employee in a lump sum on such New Payment Date. Thereafter, any payments, compensation, benefits and entitlements that remain outstanding as of the
day immediately following the New Payment Date shall be paid without delay over the time period originally scheduled, in accordance with the terms of this Agreement. 
 4. Miscellaneous. 
 4.01 Successor-in-Interest.
The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company, to expressly assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be required to perform it if no succession had taken place. 
 4.02 Binding Effect. This Agreement shall inure to the benefit of and be enforceable by Employee’s personal or legal representatives, executives, administrators, successors, heirs,
distributees, devisees and legatees. 
 4.03 Notice. For purposes of this Agreement, notices and all other
communications provided for in the Agreement shall be in writing and shall be given (i) by certified mail, return receipt requested, postage prepaid, (ii) by personal delivery or (iii) by recognized overnight carrier, and shall be
deemed received when actually received. Notices shall be addressed as follows: 
  

					
	 If to the Company:
	  	PPD Therapeutics, Inc.
		  	929 North Front Street
		  	Wilmington, North Carolina 28401
		  	Attention: Chief Executive Officer
			
	 If to Employee:
	  	  
	  	
		  	  
	  	
		  	  
	  	

 Either party hereto may change the notice address by giving notice thereof in the manner provided for herein.

 4.04 Waiver. No waiver by either party hereto at any time of any breach by the other party hereto of,
or compliance with, any provision or condition of this Agreement to be performed by such other party shall be deemed a subsequent waiver of the same or similar provisions or conditions. 

 4.05 Entire Agreement. No agreements or representations, oral or
otherwise, expressed or implied, with respect to the subject matter hereof (i.e., severance benefits provided in the event of a Change in Control) have been made by either party which are not set forth expressly in this agreement, and this
Agreement supersedes and replaces in its entirety all prior agreements and representations, expressed, implied, oral or otherwise, made by the Company to or with Employee with respect to the subject matter hereof; provided, however, that it is
agreed and understood that this Agreement shall be administered consistent with the Employment Agreement, and in the event of any conflict between the two with respect to the subject matter hereof, this Agreement shall control. 
 4.06 Jurisdiction and Venue. The parties agree that the federal or state courts sitting in Wake County, North
Carolina, will have the sole and exclusive jurisdiction to adjudicate any disputes or controversies arising out of or related to this Agreement. Employee consents to personal jurisdiction and venue in either of said courts, and waives any claims or
defenses based on improper venue or jurisdiction. 
 4.07 Governing Law. This Agreement shall be governed
by and interpreted under the laws of the State of North Carolina without giving effect to provisions thereof regarding conflict of laws. 
 4.08 Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. 
 4.09 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an
original but all of which together shall constitute one and the same instrument. 
 4.10 Headings.
Headings used in this Agreement are for convenience only and shall not be used to construe or interpret this Agreement. 
 4.11 Enforcement by Employee. All legal expenses incurred by Employee in the successful enforcement of any of the terms of this Agreement shall be paid by the Company. 
 IN WITNESS WHEREOF, the parties have executed this Severance Agreement effective the date first hereinabove set forth. 
  

									
	PPD THERAPEUTICS, INC.	 		 	EMPLOYEE
				
	By:	 	 	 		 	  

	Name:	 	 	 		 	Name:	 	  

	Title:2010 Stock Plan

 Exhibit 10.21 
 FURIEX PHARMACEUTICALS, INC. 
 2010 STOCK PLAN 

 1. Purpose. This 2010 Stock Plan (the “Plan”) is intended to provide incentives: 
 (a) to employees of Furiex Pharmaceuticals, Inc. (the “Company”), or its parent (if any) or any of its present or future
subsidiaries (collectively, “Related Corporations”), by providing them with opportunities to purchase Common Stock (as defined in Section 4) of the Company pursuant to options granted hereunder that qualify as “incentive stock
options” (“ISOs”) under Section 422 of the Internal Revenue Code of 1986, as amended, or any successor statute (the “Code”); 
 (b) to directors, employees and consultants of the Company and Related Corporations by providing them with opportunities to purchase Common Stock of the Company pursuant to options granted hereunder that
do not qualify as ISOs (Nonstatutory Stock Options, or “NSOs”); 
 (c) to employees and consultants of the Company and
Related Corporations by providing them with a right to receive the appreciation on Common Stock (“Stock Appreciation Rights” or “SARs”); 
 (d) to employees and consultants of the Company and Related Corporations by providing them with restricted stock or bonus awards of Common Stock of the Company (“Stock Bonuses”); and 

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

 
without cause) and appoint new members in substitution therefor, fill vacancies, however caused, and remove all members of the Committee and thereafter directly administer the Plan, all to the
extent permitted by the Applicable Laws. 
 (b) Subject to ratification of the grant or authorization of each Stock Right by the
Board (if so required by an Applicable Law), and subject to the terms of the Plan, the Committee, if so appointed, shall have the authority, in its discretion, to: 
 (i) determine the employees of the Company and Related Corporations (from among the class of employees eligible under Section 3 to receive ISOs) to whom ISOs may be granted, and to determine (from
among the classes of individuals and entities eligible under Section 3 to receive NSOs, Stock Bonuses and Purchase Rights) to whom NSOs, Stock Bonuses and Purchase Rights may be granted; 
 (ii) determine the time or times at which Options, Stock Bonuses or Purchase Rights may be granted (which may be based on performance
criteria); 
 (iii) determine the number of shares of Common Stock subject to any Stock Right granted by the Committee;

 (iv) determine the option price of shares subject to each Option, which price shall not be less than the minimum price
specified in Section 6 hereof, as appropriate, and the purchase price of shares subject to each Purchase Right and to determine the form of consideration to be paid to the Company for exercise of such Option or purchase of shares with respect
to a Purchase Right; 
 (v) determine whether each Option granted shall be an ISO or NSO; 
 (vi) determine (subject to Section 7) the time or times when each Option shall become exercisable and the duration of the exercise
period; 
 (vii) determine whether restrictions such as repurchase options are to be imposed on shares subject to Options,
Stock Bonuses and Purchase Rights and the nature of such restrictions, if any; 
 (viii) approve forms of agreement for use
under the Plan; 
 (ix) determine the fair market value of a Stock Right or the Common Stock underlying a Stock Right;

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

 2 

 (xi) reduce the exercise price of any Stock Right if the fair market value of the Common
Stock covered by such Stock Right shall have declined since the date the Stock Right was granted; 
 (xii) modify or amend each
Stock Right (subject to Section 8(d) of the Plan) including the discretionary authority to extend the post-termination exercisability period of Stock Rights longer than is otherwise provided for by terms of the Plan or the Stock Right;

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

 If the Committee determines to issue a NSO, it shall take whatever actions it deems necessary, under Section 422 of the
Code and the regulations promulgated thereunder, to ensure that such Option is not treated as an ISO. The interpretation and construction by the Committee of any provisions of the Plan or of any Stock Right granted under it shall be final unless
otherwise determined by the Board. The Committee may from time to time adopt such rules and regulations for carrying out the Plan as it may deem best. No member of the Board or the Committee shall be liable for any action or determination made in
good faith with respect to the Plan or any Stock Right granted under it. 
 (c) The Committee may select one of its members as
its chairman, and shall hold meetings at such times and places as it may determine. Acts by a majority of the Committee, approved in person at a meeting or in writing, shall be the valid acts of the Committee. All references in this Plan to the
Committee shall mean the Board if no Committee has been appointed. From time to time the Board may increase the size of the Committee and appoint additional members thereof, remove members (with or without cause) and appoint new members in
substitution therefor, fill vacancies however caused, or remove all members thereof and thereafter directly administer the Plan. 
 (d) Those provisions of the Plan that make express reference to Rule 16b-3 shall apply to the Company only at such time as the Company’s Common Stock is registered under the Exchange Act, and then only to such persons as are required
to file reports under Section 16(a) of the Exchange Act (a “Reporting Person”). 
 (e) To the extent that Stock
Rights are to be qualified as “performance-based” compensation within the meaning of Section 162(m) of the Code, the Plan shall be administered by a committee consisting of two or more “outside directors” as determined under
Section 162(m) of the Code. 
  

 3 

 3. Eligible Employees and Others. 
 (a) Eligibility. ISOs may be granted to any employee of the Company or any Related Corporation. Those officers of the Company who are
not employees may not be granted ISOs under the Plan. NSOs, Stock Bonuses and Purchase Rights may be granted to any director, employee or consultant of the Company or any Related Corporation. Granting of any Stock Right to any individual or entity
shall neither entitle that individual or entity to, nor disqualify him or her from, participation in any other grant of Stock Rights. 
 (b) Special Rule for Grant of Stock Rights to Reporting Persons. The selection of a director or an officer who is a Reporting Person (as the terms “director” and “officer” are defined for purposes of Rule 16b-3)
as a recipient of a Stock Right, the timing of the Stock Right grant, the exercise price, if any, of the Stock Right and the number of shares subject to the Stock Right shall be determined either (i) by the Board, or (ii) by a committee of
the Board that is composed solely of two or more Non-Employee Directors having full authority to act in the matter. For the purposes of the Plan, a director shall be deemed to be a “Non-Employee Director” only if such person is defined as
such under Rule 16b-3(b)(3), as interpreted from time to time. 
 4. Stock. The stock subject to Stock Rights shall be
authorized but unissued shares of Common Stock of the Company, par value $0.001 per share, or such shares of the Company’s capital stock into which such class of shares may be converted pursuant to any reorganization, recapitalization, merger,
consolidation or the like (the “Common Stock”), or shares of Common Stock reacquired by the Company in any manner. The aggregate number of shares that may be issued pursuant to the Plan is
[                    ] shares of Common Stock, subject to adjustment as provided herein. [18% of outstanding shares of Common Stock
immediately after the spin-off of the Company from its parent, Pharmaceutical Product Development, Inc.] Any such shares may be issued as ISOs, NSOs or Stock Bonuses, or to persons or entities making purchases pursuant to Purchase Rights, so long as
the number of shares so issued does not exceed such aggregate number, as adjusted. 
  

	 	(a)	If any Option granted under the Plan shall expire or terminate for any reason without having been exercised in full or shall cease for any reason to be exercisable in
whole or in part, or if the Company shall reacquire any shares issued pursuant to Stock Rights, the unpurchased shares subject to such Options and any shares so reacquired by the Company shall again be available for grants of Stock Rights under the
Plan. 

  

	 	(b)	In the event any Stock Option or other Award granted under the Plan is exercised through the tendering of shares of Common Stock (either actually or through
attestation), or in the event tax withholding obligations are satisfied by tendering or withholding shares of Common Stock, any shares of Common Stock so tendered or withheld shall not again be available for Awards under the Plan.

  

	 	(c)	The aggregate number of shares of Common Stock awarded to any Participant pursuant to Stock Options and/or Stock Appreciation Rights intended to be
“performance-based compensation” within the meaning of Section 162(m) of the Code shall not exceed [            ] shares in any three-year period.

  

 4 

	 	(d)	Shares of Common Stock available for awards under the stockholder-approved plan of a company acquired by the Company (as adjusted, to the extent appropriate, using the
exchange ratio or other adjustment or valuation ratio or formula used in such acquisition) may be used for Awards under the Plan to individuals who were not Eligible Participants prior to such acquisition and shall not count against the limit on the
aggregate number of shares of Common Stock which are authorized for issuance under the Plan. 

  

	 	(e)	Shares of Common Stock reacquired by the Company on the open market or otherwise using cash proceeds from exercise of Stock Options shall not be available for Awards
under the Plan. 

 5. Granting of Stock Rights. Stock Rights may be granted under the Plan at any time
after the Effective Date, as set forth in Section 17, and prior to ten years thereafter. The date of grant of a Stock Right under the Plan will be the date specified by the Board or Committee at the time it grants the Stock Right; provided,
however, that such date shall not be prior to the date on which the Board or Committee acts. The Board or Committee shall have the right, with the consent of the optionee, to convert an ISO granted under the Plan to an NSO pursuant to
Section 18. 
 6. Minimum Price; ISO Limitations. 
 (a) The price per share specified in the agreement relating to each NSO, Stock Bonus or Purchase Right granted under the Plan shall be
established by the Board or Committee, taking into account any noncash consideration to be received by the Company from the recipient of Stock Rights. 
 (b) The price per share specified in the agreement relating to each Option granted under the Plan shall not be less than the fair market value per share of Common Stock on the date of such grant. In the
case of an ISO to be granted to an employee owning stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or any Related Corporation, the price per share specified in the agreement relating to such
ISO shall not be less than 110% of the fair market value per share of Common Stock on the date of the grant. 
 (c) To the
extent that the aggregate fair market value (determined at the time an ISO is granted) of Common Stock for which ISOs granted to any employee are exercisable for the first time by such employee during any calendar year (under all stock option plans
of the Company and any Related Corporation) exceeds $100,000, or such higher value as permitted under Code Section 422 at the time of determination, such Options will be treated as NSOs, provided that this Section shall have no force or effect
to the extent that its inclusion in the Plan is not necessary for Options issued as ISOs to qualify as ISOs pursuant to Section 422 of the Code. The rule of this Section 6(c) shall be applied by taking Options in the order in which they
were granted. 
  

 5 

 (d) If, at the time a Stock Right is granted under the Plan, the Company’s Common Stock
is publicly traded, “fair market value” shall be determined as of the last business day for which the prices or quotes discussed in this sentence are available prior to the time such a Stock Right is granted and shall mean: 
 (i) if the Common Stock is then traded on a national securities exchange, the closing sale price for the Common Stock (or the closing bid,
if no sales were reported as quoted on such exchange or market); or 
 (ii) the closing bid price or average of bid prices last
quoted on that date by an established quotation service, if the Common Stock is not reported on a national securities exchange. 
 However, if the Common Stock is not publicly traded at the time a Stock Right is granted under the Plan, “fair market value” shall be deemed to be the fair value of the Common Stock as determined by the Board or Committee after
taking into consideration all factors that it deems appropriate. 
 7. Option Duration. Subject to earlier termination as
provided in Sections 10 and 11, each Option shall expire on the date specified by the Board or Committee, but not more than: 
 (a) ten (10) years from the date of grant in the case of NSOs; 
 (b) ten (10) years from the date of grant
in the case of ISOs generally; and 
 (c) five (5) years from the date of grant in the case of ISOs granted to an employee
owning stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or any Related Corporation. 
 Subject to earlier termination as provided in Sections 10 and 11, the term of each ISO shall be the term set forth in the original instrument granting such ISO, except with respect to any part of such ISO
that is converted into an NSO pursuant to Section 18. 
 8. Exercise of Options. Subject to the provisions of
Section 10 through Section 13 of the Plan, each Option granted under the Plan shall be exercisable as follows: 
 (a)
the Option shall either be fully exercisable on the date of grant or shall become exercisable thereafter in such installments as the Board or Committee may specify; 
 (b) once an installment becomes exercisable it shall remain exercisable until expiration or termination of the Option, unless otherwise specified by the Board or Committee; 
  

 6 

 (c) each Option or installment may be exercised at any time or from time to time, in whole
or in part, for up to the total number of shares with respect to which it is then exercisable; and 
 (d) the Board or Committee
shall have the right to accelerate the date of exercise of any installment of any Option, provided that the Board or Committee shall not accelerate the exercise date of any installment of any ISO granted to any employee (and not previously converted
into an NSO pursuant to Section 18) without the prior consent of such employee if such acceleration would violate the annual vesting limitation contained in Section 422 of the Code, as described in Section 6(c). 
 9. Stock Appreciation Rights. Each SAR agreement shall be in such form and shall contain such terms and conditions as the Board or
Committee shall deem appropriate. SARs may be granted as stand-alone Stock Rights or in tandem with other Stock Rights. The terms and conditions of SAR agreements may change from time to time, and the terms and conditions of separate SAR agreements
need not be identical; provided, however, that each SAR agreement shall conform to (through incorporation of the provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions: 
 (a) Term. No SAR shall be exercisable after the expiration of ten (10) years from the date of its grant or such shorter
period specified in the SAR agreement. 
 (b) Strike Price. Each SAR will be denominated in shares of Common Stock
equivalents. The strike price of each SAR shall not be less than one hundred percent (100%) of the fair market value of the Common Stock equivalents subject to the SAR on the date of grant. 
 (c) Calculation of Appreciation. The appreciation distribution payable on the exercise of a SAR will be not greater than an
amount equal to the excess of (A) the aggregate fair market value (on the date of the exercise of the SAR) of a number of shares of Common Stock equal to the number of shares of Common Stock equivalents in which the participant is vested under
such SAR, and with respect to which the participant is exercising the SAR on such date, over (B) the strike price. 
 (d)
Vesting. At the time of the grant of a SAR, the Board or Committee may impose such restrictions or conditions to the vesting of such SAR as it, in its sole discretion, deems appropriate. 
 (e) Exercise. To exercise any outstanding SAR, the participant must provide written notice of exercise to the Company in
compliance with the provisions of the SAR agreement evidencing such SAR. 
 (f) Payment. The appreciation
distribution in respect of a SAR may be paid in Common Stock, in cash, in any combination of the two or in any other form of consideration, as determined by the Board or Committee and set forth in the SAR agreement evidencing SAR. 
  

 7 

 (g) Termination of Continuous Service. In the event that a participant’s
continuous service terminates (other than For Cause, as defined in Section 10), the participant may exercise his or her SAR (to the extent that the participant was entitled to exercise such SAR as of the date of termination of continuous
service) but only within such period of time ending on the earlier of (A) the date three (3) months following the termination of the participant’s continuous service (or such longer or shorter period specified in the SAR agreement),
or (B) the expiration of the term of the SAR as set forth in the SAR agreement. If, after termination of continuous service, the participant does not exercise his or her SAR within the time specified herein or in the SAR agreement (as
applicable), the SAR shall terminate. 
 (h) Compliance with Section 409A of the Code. Notwithstanding anything
to the contrary set forth herein, any SARs granted under the Plan that are not exempt from the requirements of Section 409A of the Code shall incorporate terms and conditions necessary to avoid the consequences described in
Section 409A(a)(1) of the Code. Such restrictions, if any, shall be determined by the Board and contained in the SAR agreement evidencing such SAR. 
 10. Termination of Employment or Affiliation. If a grantee ceases to be employed by the Company and all Related Corporations other than by reason of death or disability as defined in
Section 11, or by reason of a termination “For Cause” as defined in this Section 10, unless otherwise specified in Section 9 (in the case of SARs)or in the instrument granting such Stock Right, the grantee shall have the
continued right to exercise any Stock Right held by him or her, to the extent of the number of shares with respect to which he or she could have exercised it on the date of termination until the date set forth in the Stock Right; provided, however,
in the event the grantee exercises any ISO after the date that is three months following the date of termination of employment, such ISO will automatically be converted into an NSO subject to the terms of the Plan. Employment shall be considered as
continuing uninterrupted during any bona fide leave of absence (such as those attributable to illness, military obligations or governmental service) provided that the period of such leave does not exceed ninety (90) days or, if longer, any
period during which such grantee’s right to reemployment with the Company is guaranteed by statute or by contract. A bona fide leave of absence with the written approval of the Company shall not be considered an interruption of employment under
the Plan, provided that such written approval contractually obligates the Company or any Related Corporation to continue the employment of the grantee after the approved period of absence; provided that the foregoing approval requirement shall not
apply to a leave of absence guaranteed by statute or contract. ISOs granted under the Plan shall not be affected by any change of employment within or among the Company and Related Corporations, so long as the optionee continues to be an employee of
the Company or any Related Corporation. 
 For purposes of this Plan, a change in status from employee to a consultant, or from
a consultant to employee, will not constitute a termination of employment, provided that a change in status from an employee to consultant may cause an ISO to become an NSO under the Code. In the event of a termination “For Cause,” the
right of a grantee to exercise a Stock Right shall terminate as of the date of termination. For purposes of this Plan, “For Cause” shall mean the termination of a grantee’s status as an employee, a director or consultant (as
applicable) for any of the following reasons, as determined by the Committee; provided, that, with respect to an

  

 8 

 
employee that is party to an agreement with the Company where a termination for cause is defined in such agreement, the definition in such agreement shall govern the determination under this
Section 10: 
 (i) A grantee who is a consultant and who commits a material breach of any consulting, noncompetition,
confidentiality or similar agreement with the Company or a subsidiary, as determined under such agreement; 
 (ii) A grantee who
is an employee or a consultant and who is convicted (including a trial, plea of guilty or plea of nolo contendere) for committing an act of fraud, embezzlement, theft, or other act constituting a felony; 
 (iii) A grantee who is an employee or a consultant and who willfully engages in gross misconduct or willfully violates a Company or a
subsidiary policy which is materially and demonstrably injurious to the Company and/or a subsidiary after a written demand to cease such misconduct or violation has been delivered by the Committee to the grantee that specifically identifies the
manner in which the Committee believes that the grantee has violated this Paragraph (iii), and the grantee fails to cease such misconduct or violation and remedy any injury suffered by the Company or the subsidiary as a result thereof within thirty
(30) calendar days after receiving such notice, unless the Board determines that a shorter period of time is reasonable under the circumstances, provided, however, that no act or failure to act, on the grantee’s part shall be considered
“willful” unless done, or omitted to be done, by the grantee not in good faith and without reasonable belief that the grantee’s action or omission was in the best interest of the Company or the subsidiary; or 
 (iv) A grantee who is a Company or Related Corporation employee and who commits a material breach of any noncompetition, confidentiality or
similar agreement with the Company or a Related Corporation, as determined under such agreement. 
 NOTHING IN THE PLAN SHALL BE
DEEMED TO GIVE ANY GRANTEE OF ANY STOCK RIGHT THE RIGHT TO BE RETAINED IN EMPLOYMENT OR OTHER SERVICE BY THE COMPANY OR ANY RELATED CORPORATION FOR ANY PERIOD OF TIME OR TO AFFECT THE AT-WILL NATURE OF ANY EMPLOYEE’S EMPLOYMENT. 
 11. Death; Disability. 
 (a) If a grantee ceases to be employed by or otherwise affiliated with the Company and all Related Corporations by reason of death, or if a grantee dies within three (3) months of the date his or her
employment or other affiliation with the Company has been terminated, any Stock Right held by him or her may be exercised to the extent of the number of shares with respect to which he or she could have exercised said Stock Right on the date of
death, by his or her estate, personal representative or beneficiary who has acquired the Stock Right by will or by the laws of descent and distribution (the “Successor Grantee”), unless otherwise specified in the instrument granting such
Stock Right, prior to the earlier of (i) one (1) year after the date of termination or (ii) the Stock Right’s specified expiration date, provided,

  

 9 

 
however, that a Successor Grantee shall be entitled to ISO treatment under Section 421 of the Code only if the deceased optionee would have been entitled to like treatment had he or she
exercised such Option on the date of his or her death provided, however, in the event the Successor Grantee exercises an ISO after the date that is one (1) year following the date of termination by reason of death, such ISO will automatically
be converted into a NSO subject to the terms of the Plan. 
 (b) If a grantee ceases to be employed by or otherwise affiliated
with the Company and all Related Corporations by reason of disability, he or she shall continue to have the right to exercise any Stock Right held by him or her on the date of termination until unless otherwise specified in the instrument granting
such Stock Right, the earlier of (i) one (1) year after the date of termination or (ii) the Stock Right’s specified expiration date, provided, however, in the event the grantee exercises an ISO after the date that is one
(1) year following the date of termination by reason of disability, such ISO will automatically be converted into a NSO subject to the terms of the Plan. For the purposes of the Plan, the term “disability” shall mean “permanent
and total disability” as defined in Section 22(e)(3) of the Code. 
 (c) The provisions of subsections (a) and
(b) of this Section 11 regarding the exercise period of a Stock Right may be waived, extended or further limited, in the discretion of the Board or Committee, in an instrument granting a Stock Right that is not an ISO. 
 12. Transferability and Assignability of Stock Rights. 
 (a) No ISO granted under this Plan shall be assignable or otherwise transferable by the optionee except by will or by the laws of descent and distribution. An ISO may be exercised during the lifetime of
the optionee only by the optionee. 
 (b) Any vested NSO or Purchase Right may be transferable by the grantee to the
grantee’s family members by will or by the laws of descent and distribution. For purposes of the Plan, a grantee’s “family members” shall be deemed to consist of his or her spouse, parents, children, grandparents, grandchildren
and any trusts created for the benefit of such individuals. A family member to whom any such Stock Right has been transferred pursuant to this Section 12(b) shall be hereinafter referred to as a “Permitted Transferee”. A Stock Right
shall be transferred to a Permitted Transferee in accordance with the foregoing provisions, and subject to all the provisions of the Stock Right Agreement and this Plan, by the execution by the grantee and the transferee of an assignment in writing
in such form approved by the Board or the Committee. The Company shall not be required to recognize the rights of a Permitted Transferee until such time as it receives a copy of the assignment from the grantee. 
 13. Terms and Conditions of Stock Rights. Stock Rights shall be evidenced by instruments (which need not be identical) in such forms
as the Board or Committee may from time to time approve. Such instruments shall conform to the terms and conditions set forth in Sections 6 through 12 hereof and may contain such other provisions as the Board or Committee deems advisable that are
not inconsistent with the Plan, including restrictions (or other conditions deemed by the Board or Committee to be in the best interests of the Company) applicable to the

  

 10 

 
exercise of Options or to shares of Common Stock issuable upon exercise of Options. In granting any NSO, the Board or Committee may specify that such NSO shall be subject to the restrictions set
forth herein with respect to ISOs, or to such other termination and cancellation provisions as the Board or Committee may determine. The Board or Committee may from time to time confer authority and responsibility on one or more of its own members
and/or one or more officers of the Company to execute and deliver such instruments. The proper officers of the Company are authorized and directed to take any and all action necessary or advisable from time to time to carry out the terms of such
instruments. 
 14. Adjustments. Upon the occurrence of any of the following events, the rights of a recipient of a Stock
Right granted hereunder shall be adjusted as hereinafter provided, unless otherwise provided in the written agreement between the recipient and the Company relating to such Stock Right. 
 (a) If the shares of Common Stock shall be subdivided or combined into a greater or smaller number of shares or if the Company shall issue
shares of Common Stock as a stock dividend on its outstanding Common Stock, the number of shares of Common Stock deliverable upon the exercise of outstanding Stock Rights shall be appropriately increased or decreased proportionately, and appropriate
adjustments shall be made in the purchase price (if any) per share to reflect such subdivision, combination or stock dividend. 
 (b) If the Company is to be consolidated with or acquired by another entity in a merger, sale of all or substantially all of the Company’s assets or otherwise (an “Acquisition”), unless otherwise provided by the Board or
Committee, in its sole discretion, the Board or Committee or the board of directors of any entity assuming the obligations of the Company hereunder (the “Successor Board”) shall, as to outstanding Stock Rights, make appropriate provision
for the continuation of such Stock Rights by either assumption of such Stock Rights or by substitution of such Stock Rights with an equivalent award. For Stock Rights that are so assumed or substituted, in the event of a termination of
grantee’s employment or consulting relationship by the Company or its successor other than For Cause or by grantee for Good Reason (as defined below) within sixty (60) days prior to and one hundred and eighty (180) days after an
Acquisition, all Stock Rights held by such grantee shall become vested and immediately and fully exercisable and all forfeiture restrictions shall be waived. If the Board, the Committee, or the Successor Board does not make appropriate provisions
for the continuation of such Stock Rights by either assumption or substitution, unless otherwise provided by the Board or Committee in its sole discretion, Stock Rights shall become vested and fully and immediately exercisable and all forfeiture
restrictions shall be waived and all Stock Rights not exercised at the time of the closing of such Acquisition shall terminate notwithstanding anything to the contrary in Section 10 hereof. For purposes of this Plan, a termination for
“Good Reason” shall mean the resignation of an employee within thirty (30) days after the following actions: (i) without the express written consent of employee, the Company assigns duties which are materially inconsistent with
employee’s position, duties and status; (ii) any action by the Company which results in a material diminution in the position, duties or status of employee or any transfer or proposed transfer of employee for any extended period to a
location more than fifty (50) miles away from such employees’ principal place of employment, except for a transfer or proposed transfer for strategic reallocations of the personnel reporting to employee; or (iii) the Company reduces
the base annual salary of employee, as then in effect. 
  

 11 

 (c) In the event of a transaction, including without limitation, a recapitalization or
reorganization of the Company (other than a transaction described in subsection (b) above) pursuant to which securities of the Company are exchanged for other securities, an optionee or grantee upon exercising an a Stock Rights shall be
entitled to receive for the purchase price paid upon such exercise the securities he or she would have received if he or she had exercised the Stock Right immediately prior to such recapitalization or reorganization. 
 (d) In the event of a spin-off from the Company or other non-cash dividend on the outstanding shares of Common Stock, the Company will make
appropriate equitable adjustments to the exercise price of all outstanding Options and SAR’s, and to the number of shares underlying such awards. 
 (e) In the event of the proposed dissolution or liquidation of the Company, each Stock Right will terminate immediately prior to the consummation of such proposed action or at such other time and subject
to such other conditions as shall be determined by the Board or Committee. 
 (f) Except as expressly provided herein, no
issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares subject to Stock
Right. No adjustments shall be made for dividends paid in cash or in property other than Common Stock of the Company, nor shall cash dividends or dividend equivalents accrue or be paid in respect of unexercised Options or unvested Stock Rights
hereunder. 
 (g) No fractional shares shall be issued under the Plan and any optionee who would otherwise be entitled to
receive a fraction of a share upon exercise of a Stock Right shall receive from the Company cash in lieu of such fractional shares in an amount equal to the fair market value of such fractional shares, as determined in the sole discretion of the
Board or Committee. 
 (h) Upon the happening of any of the foregoing events described in subsections (a), (b) or
(c) above, the class and aggregate number of shares set forth in Section 4 hereof that are subject to Stock Rights that previously have been or subsequently may be granted under the Plan shall also be appropriately adjusted to reflect the
events described. The Board or Committee or the Successor Board shall determine the specific adjustments to be made under this Section 14 and, subject to Section 2, its determination shall be conclusive. 
 15. Means of Exercising Stock Rights. Except as otherwise provided in this Plan or the instrument evidencing the Stock Right, a Stock
Right (or any part or installment thereof) shall be exercised by giving written notice to the Company at its principal office address to the attention of its President. Such notice shall identify the Stock Right being exercised and specify

  

 12 

 
the number of shares as to which such Stock Right is being exercised, accompanied by full payment of the exercise price therefor, if any, payable as follows (a) in United States dollars in
cash or by check, (b) at the discretion of the Board or Committee, through the delivery of already-owned shares of Common Stock having a fair market value equal as of the date of the exercise to the cash exercise price of the Stock Right and,
in the case of such already-owned shares of Common Stock, having been owned by the participant for more than six (6) months from the date of surrender, (c) at the discretion of the Board or Committee, by delivery of the grantee’s
personal recourse note bearing interest payable not less than annually at a market rate that is no less than 100% of the lowest applicable Federal rate, as defined in Section 1274(d) of the Code, (d) at the discretion of the Board or
Committee, through the surrender of shares of Common Stock then issuable upon exercise of the Stock Right having a fair market value on the date of exercise equal to the aggregate price of the Stock Right, (e) at the discretion of the Board of
Committee, delivery of a notice that the grantee has placed a market sell order with a broker with respect to shares of Common Stock then issuable upon exercise of the Stock Right and that the broker has been directed to pay a sufficient portion of
the net proceeds of the sale to the Company in satisfaction of the Stock Right Exercise Price, provided that payment of such proceeds is then made to the Company upon settlement of the sale, or (f) at the discretion of the Board or Committee,
by any combination of (a), (b), (c), (d) and (e) or such other consideration and method of payment for the issuance of shares to the extent permitted by applicable law or the Plan. If the Board or Committee exercises its discretion to
permit payment of the exercise price of an ISO by means of the methods set forth in clauses (b), (c) (d), (e) or (f) of the preceding sentence, such discretion shall be exercised in writing at the time of the grant of the ISO in
question and such exercise shall also be governed by any terms set forth in the written agreement evidencing the grant of the Stock Right. The holder of a Stock Right shall not have the rights of a stockholder with respect to the shares covered by
the Stock Right until the date of issuance of a stock certificate for such shares. Except as expressly provided above in Section 14 with respect to changes in capitalization and stock dividends, no adjustment shall be made for dividends or
similar rights for which the record date is before the date such stock certificate is issued. 
 16. Surrender of Stock
Rights for Cash or Stock. The Board or Committee may, in its sole and absolute discretion and subject to such terms and conditions as it deems appropriate, accept the surrender by an optionee or grantee of a Stock Right granted to him under the
Plan and authorize payment in consideration therefor of an amount equal to the difference between the purchase price payable for the shares of Common Stock under the instrument granting the Option and the fair market value of the shares subject to
the Stock Right (determined as of the date of such surrender of the Stock Right). Such payment shall be made in shares of Common Stock valued at fair market value on the date of such surrender, or in cash, or partly in such shares of Common Stock
and partly in cash as the Board or Committee shall determine. The surrender shall be permitted only if the Board or Committee determines that such surrender is consistent with the purpose set forth in Section 1, and only to the extent that the
Stock Right is exercisable under Section 8 on the date of surrender. In no event shall an optionee or grantee surrender his or her Stock Right under this Section if the fair market value of the shares on the date of such surrender is less than
the purchase price payable for the shares of Common Stock subject to the Stock Right. Any ISO surrendered pursuant to the provisions of this Section 16 shall be deemed to have been converted into a NSO immediately prior to such surrender.

  

 13 

 17. Term and Amendment of Plan. This Plan was adopted by the Board and sole
stockholder of the Company on February 19, 2010 (the “Effective Date”). The Plan shall expire ten (10) years after the Effective Date (except as to Stock Rights outstanding on that date). The Board may terminate or amend the Plan
in any respect at any time, except that without the approval of the stockholders obtained within twelve (12) months before or after the Board adopts a resolution authorizing any of the following actions: 
 (a) the total number of shares that may be issued under the Plan may not be increased (except by adjustment pursuant to Section 14);

 (b) the provisions of Section 3 regarding eligibility for grants of ISOs may not be modified; 
 (c) the provisions of Section 6(b) regarding the exercise price at which shares may be offered pursuant to Options may not be modified
(except by adjustment pursuant to Section 14); 
 (d) the expiration date of the Plan may not be extended; and 

(e) except as provided in Section 13, the Company may not amend an Option or SAR awarded under the Plan to reduce its price per
share, cancel and regrant new Options or SARs with lower prices per share than the original prices per share of the cancelled Options or SAR’s, or cancel any Options or SARs in exchange for cash or the grant replacement Awards having the effect
of a reprising without approval by the Company’s shareholders. 
 Except as provided in Section 14(b) and this
Section 17, in no event may action of the Board or stockholders adversely alter or impair the rights of a grantee, without his or her consent, under any Stock Right previously granted. 
 18. Conversion of ISOs into NSOs; Termination of ISOs. The Board or Committee, with the consent of any optionee, may in its
discretion take such actions as may be necessary to convert an optionee’s ISOs (or any installments or portions of installments thereof) that have not been exercised on the date of conversion into NSOs at any time prior to the expiration of
such ISOs. These actions may include, but not be limited to, accelerating the exercisability, extending the exercise period or reducing the exercise price of the appropriate installments of optionee’s Options. At the time of such conversion,
the Board or Committee (with the consent of the optionee) may impose these conditions on the exercise of the resulting NSOs as the Board or Committee in its discretion may determine, provided that the conditions shall not be inconsistent with the
Plan. Nothing in the Plan shall be deemed to give any optionee the right to have such optionee’s ISOs converted into NSOs, and no conversion shall occur until and unless the Board or Committee takes appropriate action. The Board or Committee,
with the consent of the optionee, may also terminate any portion of any ISO that has not been exercised at the time of termination. 
  

 14 

 19. Governmental Regulation. The Company’s obligation to sell and deliver shares
of the Common Stock under the Plan is subject to the approval of any governmental authority required in connection with the authorization, issuance or sale of such shares. 
 20. Withholding of Additional Income Taxes. 
 (a) Upon the exercise of an NSO, or the grant of a Stock Bonus or Purchase Right for less than the fair market value of the Common Stock, the making of a Disqualifying Disposition (as defined in
Section 21), the vesting of restricted Common Stock acquired on the exercise of a Stock Right hereunder or the surrender of an Option pursuant to Section 16, the Company, in accordance with Section 3402(a) of the Code and any
applicable state statute or regulation, may require the optionee, Stock Bonus recipient or purchaser to pay to the Company additional withholding taxes in respect of the amount that is considered compensation includable in such person’s gross
income. With respect to (a) the exercise of an Option, (b) the grant of a Stock Bonus, (c) the grant of a Purchase Right of Common Stock for less than its fair market value, (d) the vesting of restricted Common Stock acquired by
exercising a Stock Right, or (e) the acceptance of a surrender of an Option, the Committee in its discretion may condition such event on the payment by the optionee, Stock Bonus recipient or purchaser of any such additional withholding taxes.

 (b) At the sole and absolute discretion of the Committee, the holder of Stock Rights may pay all or any part of the total
estimated federal and state income tax liability arising out of the exercise or receipt of such Stock Rights, the making of a Disqualifying Disposition, or the vesting of restricted Common Stock acquired on the exercise of a Stock Right hereunder
(each of the foregoing, a “Tax Event”) by tendering already-owned shares of Common Stock or (except in the case of a Disqualifying Disposition) by directing the Company to withhold shares of Common Stock otherwise to be transferred to the
holder of such Stock Rights as a result of the exercise or receipt thereof in an amount equal to the estimated federal and state income tax liability arising out of such event, provided that no more shares may be withheld than are necessary to
satisfy the holder’s actual minimum withholding obligation with respect to the exercise of Stock Rights. In such event, the holder of Stock Rights must, however, notify the Committee of his or her desire to pay all or any part of the total
estimated federal and state income tax liability arising out of a Tax Event by tendering already-owned shares of Common Stock or having shares of Common Stock withheld prior to the date that the amount of federal or state income tax to be withheld
is to be determined. For purposes of this Section 20(b), shares of Common Stock shall be valued at their fair market value on the date that the amount of the tax withholdings is to be determined. 
 21. Notice to Company of Disqualifying Disposition. Each employee who receives an ISO must agree to notify the Company in writing
immediately after the employee makes a Disqualifying Disposition (as defined below) of any Common Stock acquired pursuant to the exercise of an ISO. A “Disqualifying Disposition” is any disposition (including any sale) of such Common Stock
before either (a) two (2) years after the date the employee was granted the ISO, or (b) one (1) year after the date the employee acquired Common Stock by exercising the ISO. If the employee has died before such Common Stock is
sold, these holding period requirements do not apply and no Disqualifying Disposition can occur thereafter. 
  

 15 

 22. Governing Law; Construction. The validity and construction of the Plan and the
instruments evidencing Stock Rights shall be governed by the laws of the State of Delaware. In construing this Plan, the singular shall include the plural and the masculine gender shall include the feminine and neuter, unless the context otherwise
requires. 
  

 16

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