Document:

Agreement dated as of January 22, 2013

 Exhibit 10.20 
 AGREEMENT 
 This Agreement is dated as of January 22, 2013 (the
“Agreement”) by and among
                                         
                                   and Xenonics Holdings, Inc., a Nevada
corporation (the “Company”). 
 RECITALS 

A. Each of and                     
is the holder of a promissory note of the Company in the principal amount of $500,000 (together the “Company Notes”). Each of the Company Notes (as extended) provides that principal is due on January 15, 2013, and each of the Company
Notes is secured by substantially all of the assets of the Company. 
 B. Each of
                     and                      has
agreed to extend the maturity dates of the Company Notes to October 31, 2013 upon the terms and conditions as set forth herein. 
 C. Each of                      and
                     is the holder of a promissory note of the Company in the principal amount of $37,500, which promissory notes shall be repaid at
the Closing. 
 D.             ,
            ,              and              have agreed to lend the
Company an additional $100,000, $100,000, $200,000, and $50,000, respectively, upon the terms and conditions set forth herein. 

AGREEMENT 
 NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties
agree as follows: 

 1.
                     and                     
each agree that, effective as of the Closing, the maturity date of the Company Notes shall be extended from January 15, 2013 to October 31, 2013. The Company Notes shall not be modified in any other respect except that the Company Notes
shall bear interest at the rate of 13% per annum commencing on January 1, 2013, payable quarterly in arrears and shall be prepayable in accordance with the cash flow projection attached as Exhibit A hereto, and shall continue to be secured
by substantially all of the assets of the Company. 
 2. At the Closing,
            ,             ,              and
             each agree to purchase $100,000, $100,000, $200,000 and $50,000, respectively, in principal amount of notes of the Company (the “Additional Notes”). The Additional
Notes shall contain the terms and conditions set forth in the forms attached hereto as Exhibit “A”. Each of the Additional Notes shall provide for a maturity date of October 31, 2013, interest at the rate of 13% per annum,
payable quarterly in arrears and shall be secured by substantially all of the assets of the Company. At the Closing the Company shall repay the promissory notes described in Recital C above. 

3. In consideration for the extension of the maturity date of the Company Notes as provided in Paragraph 1 above, at the Closing the
Company shall issue to each of              and              five (5) year warrants to purchase 200,000 shares of Common
Stock of the Company at an exercise price of $.14 per share (the “Warrants”). In consideration for the loans evidenced by the Additional Notes, the Company shall issue to each of
            ,             ,              and
            , respectively, five (5) year warrants to purchase 100,000, 100,000, 200,000 and 50,000 shares of Common Stock of the Company at an exercise price of $.14 per share (also
“the Warrants”). 
 4. The parties hereby agree that the Additional Notes shall also be secured by substantially all
of the assets of the Company pari passu with the Company Notes. 

  
 2 

 5. The Closing of the transactions contemplated by this Agreement shall take place on
January 22, 2013. At the Closing the Company shall issue the Additional Notes and the Warrants and             ,
            ,              and              shall wire transfer to
the Company $100,000, $100,000, $200,000 and $50,000 respectively. The Company’s wire transfer information is attached as Exhibit B hereto. 
 6. The Company represents to             ,             ,
             and              that the Company has filed all reports, schedules and other documents required to be filed by the
Company under the Securities Exchange Act of 1934, as amended (the “SEC Reports”) for the two years preceding the date hereof on a timely basis, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary in order to make the statement therein, not misleading. 
 7. Each of             ,             ,
             and              severally, but not jointly, represents and warrants to, and covenants and agrees with, the Company
as follows: 
 a. The Warrants and the shares of Common Stock issuable upon exercise of the Warrants are being acquired for his
own account for investment only and not with a view towards the public sale or distribution thereof; 
 b. Each of
            ,             ,              and
             is (i) an “accredited investor” as that term is defined in Rule 501 of the General Rules and Regulations under the 1933 Act by reason of Rule 501(a)(3);
(ii) experienced in making investments and loans of the kind described in this Agreement; (iii) able, by reason of the business and financial experience to protect his own interests in connection with the transactions described in this
Agreement; and(iv) able to afford the entire loss of his investment; 

  
 3 

 c. All subsequent offers and sales of the Warrants and the shares of Common Stock issuable
upon conversion of the Warrants by             ,             ,
             and             , shall be made pursuant to registration under the 1933 Act or pursuant to an exemption from
registration; 
 d.             ,
            ,              and              understand that the
Warrants are being issued in reliance on specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying upon the truth and accuracy of each of
            ,             ,              and
            ’s representations, warranties, agreements, acknowledgements and understandings set forth herein in order to determine the availability of such exemptions; 

e. Each of             ,
            ,              and              has been furnished with
all publicly available materials relating to the business, finances and operations of the Company, has been afforded the opportunity to ask questions of the Company and has received complete and satisfactory answers to such inquiries; and

 f. Each of             ,
            ,              and              agrees that the Warrants
and the shares of Common Stock issuable upon the exercise of the Warrants shall bear substantially the following legend: 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THE SECURITIES
MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SAID ACT.” 

(Signatures on following page) 

  
 4 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the date first above written. 
  

			
	  	 	  
		
	 	 	 
		
	 	 	 
		
	 	 	 
	
	XENONICS HOLDINGS, INC.
		
	By:	 	 
		 	Alan M. Magerman
		 	Title: Chief Executive Officer

  
 5 

 NEITHER THIS WARRANT NOR ANY OF THE SHARES OF COMMON STOCK ISSUED UPON ANY EXERCISE HEREOF HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS, AND NONE OF SUCH SECURITIES MAY BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION
STATEMENT IN EFFECT WITH RESPECT TO THIS WARRANT OR SUCH SHARES, AS APPLICABLE, UNDER SUCH ACT AND APPLICABLE LAWS OR SOME OTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO
THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED. THIS LEGEND SHALL BE ENDORSED UPON ANY WARRANT ISSUED IN EXCHANGE FOR THIS WARRANT. 
 Warrant to Purchase Shares of Common Stock 
 WARRANT TO PURCHASE COMMON STOCK

 OF 

XENONICS HOLDINGS, INC. 
  

			
	Warrant Shares 50,000	  	 Issue Date: January 22, 2013

 This certifies that, for value received,
                     (the “Holder”), or registered assigns, is entitled, subject to the terms set forth below, to purchase from
Xenonics Holdings, Inc., a Nevada corporation (the “Company”), at any time, and from time to time, during the term set forth in Section 1 below, fully paid, validly issued and nonassessable shares of the Company’s $0.001
par value common stock (the “Common Stock”), upon surrender hereof, at the principal office of the Company, with the subscription form attached hereto duly executed, and simultaneous payment therefor in lawful money of the United
States, at the Exercise Price as set forth in Section 2 below. 
 1. Term of Warrant. Subject to the terms and
conditions set forth herein, this Warrant shall be exercisable, in whole or in part, at any time or from time to time, during the term commencing on the date hereof and ending January 21, 2018. 

2. Number of Shares of Common Stock: Exercise Price. 
 (a) During the term of this Warrant, this Warrant may be exercised for the purchase of shares of Common Stock. 
 (b) The number of shares of Common Stock that can be purchased upon the exercise of this Warrant shall be Fifty Thousand (50,000). 
 (c) The Exercise Price at which this Warrant may be exercised shall be $.14 per share. 

 3. Exercise of Warrant. 

(a) The purchase rights represented by this Warrant are exercisable by the Holder in whole or in part, at any time, or from time to time,
during the term hereof as described in Section 1 above, by the surrender of this Warrant and the Notice of Exercise annexed hereto duly completed and executed on behalf of the Holder, at the office of the Company (or such other office or agency
of the Company as it may designate by notice in writing to the Holder at the address of the Holder appearing on the books of the Company), upon payment in cash or by check acceptable to the Company of the purchase price of the shares of Common Stock
to be purchased. 
 (b) This Warrant shall be deemed to have been exercised immediately prior to the close of business on the
date of its surrender for exercise as provided above, and the person entitled to receive the shares of Common Stock issuable upon such exercise shall be treated for all purposes as the holder of record of such shares as of the close of business on
such date. As promptly as practicable on or after such date and in any event within ten (10) days thereafter, the Company at its expense shall issue and deliver to the person or persons entitled to receive the same a certificate or certificates
for the number of shares of Common Stock issuable upon such exercise. In the event that this Warrant is exercised in part, the Company at its expense will execute and deliver a new Warrant of like tenor exercisable for the number of shares of Common
Stock for which this Warrant may then be exercised. 
 (c) All or any portion of the Exercise Price may be paid by surrendering
this Warrant with a Notice of Exercise Form annexed hereto duly executed (a “Cashless Exercise”). In the event of a Cashless Exercise, the Holder shall exchange its Warrant for that number of shares of Common Stock determined by
multiplying the number of shares of Common Stock for which the Holder desires to exercise this Warrant by a fraction, the numerator of which shall be the difference between the then current market price per shares of the Common Stock and the
Exercise Price, and the denominator of which shall be the then current market price per share of Common Stock. For purposes of any computation under this Section 3(c), the then current market price per share of Common Stock at any date shall be
deemed to be the average for the ten consecutive business days immediately prior to the Cashless Exercise of the daily closing prices of the Common Stock on the principal national securities exchange on which the Common Stock is admitted to trading
or listed, or if not then publicly traded, the fair market price of the Common Stock as determined in good faith by the Board of Directors of the Company. 
 4. No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. In lieu of any fractional share to which the Holder
would otherwise be entitled, the Company shall make a cash payment equal to the Exercise Price then in effect multiplied by such fraction. 
 5. Replacement of Warrant. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of any such loss, theft or
destruction, upon delivery of an indemnity agreement reasonably satisfactory in form and substance to the Company or, in the case of mutilation, upon surrender or cancellation of this Warrant, the Company at its expense shall execute and deliver, in
lieu of this Warrant, a new warrant of like tenor representing the right to subscribe for and purchase the shares of Common Stock which may be subscribed for and purchased hereunder. Any such new Warrant executed and delivered shall constitute an
additional contractual obligation of the Company, whether or not this Warrant so lost, stolen, destroyed or mutilated shall be at any time enforceable by anyone. 

  
 2 

 6. Rights of Stockholders. The Holder shall not be entitled to vote or receive
dividends or be deemed the holder of Common Stock or any other securities of the Company that may at any time be issuable on the exercise hereof for any purpose, nor shall anything contained herein be construed to confer upon the Holder, as such,
any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action (whether upon any
recapitalization, issuance of stock, reclassification of stock, change of par value, or change of stock to no par value, consolidation, merger, conveyance, or otherwise) or to receive notice of meetings, or to receive dividends or subscription
rights or otherwise until this Warrant shall have been exercised as provided herein. 
 7. Transfer of Warrant.

 (a) Warrant Register. The Company will maintain a register (the “Warrant Register”) containing the
names and addresses of the Holder or Holders. Any Holder of this Warrant or any portion hereof may change its address as shown on the Warrant Register by written notice to the Company requesting such change. Any notice or written communication
required or permitted to be given to the Holder may be delivered or given by mall to such Holder as shown on the Warrant Register and at the address shown on the Warrant Register. Until this Warrant is transferred on the Warrant Register of the
Company, the Company may treat the Holder as shown on the Warrant Register as the absolute owner of this Warrant for the purpose of any exercise hereof or any distribution to the Holder and for all other purposes, notwithstanding any notice to the
contrary. 
 (b) Warrant Agent. The Company may, by written notice to the Holder, appoint an agent for the purpose of
maintaining the Warrant Register referred to in Section 7(a) above, issuing the Common Stock or other securities then issuable upon the exercise of this Warrant, exchanging this Warrant, replacing this Warrant, or any or all of the foregoing.
Thereafter, any such registration, issuance, exchange, or replacement, as the case may be, shall be made at the office of such agent. 
 (c) Transferability and Nonnegotiability of Warrant. This Warrant may not be transferred or assigned in whole or in part without compliance with all applicable federal and state securities laws by
the transferor and the transferee (including the delivery of investment representation letters and legal opinions reasonably satisfactory to the Company, if such are requested by the Company). Subject to the provisions of this Warrant with respect
to compliance with the Securities Act of 1933, as amended (the “Act”), title to this Warrant may be transferred by endorsement (by the Holder executing the Assignment Form annexed hereto) and delivery in the same manner as a
negotiable instrument transferable by endorsement and delivery. 

  
 3 

 (d) Exchange of Warrant Upon a Transfer. On surrender of this Warrant for exchange,
properly endorsed on the Assignment Form and subject to the provisions of this Warrant with respect to compliance with the Act, the Company at its expense shall issue to or on the order of the Holder a new warrant or warrants to purchase Common
Stock, in substantially the form of this Warrant, in the name of the Holder or as the Holder (on payment by the Holder of any applicable transfer taxes) may direct, for the number of shares issuable upon exercise hereof. In the event of a partial
transfer by a Holder, the Company shall issue to the holders one or more appropriate new warrants. The acceptance of the new warrant by the transferee thereof shall be deemed the acceptance by such transferee of all of the rights and obligations of
a holder of a warrant. 
 (e) Compliance with Securities Laws. All shares of Common Stock issued upon exercise hereof
shall be stamped or imprinted with a legend in substantially the following form (in addition to any legend required by state securities laws): 

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION
THEREOF, AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. SUCH SHARES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS THE SALE OR TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY
REQUIREMENTS OF SAID ACT. 
 Upon the registration, under the Act, of the securities issued upon exercise of the Warrant such legend shall be
removed from the certificate evidencing such securities. 
 8. Registration. 

(a) Piggyback Registration. The Company agrees that, other than a registration statement filed on Form S-8 or to register shares
for selling shareholders to be prepared and filed within one of year of the date hereof, at any time on or before the Expiration Date the Company registers any of its securities under the Act, whether for its own account or on behalf of selling
stockholders, the Company will provide the Holder with at least forty-five (45) days prior written notice of such intention and, upon request from the Holder, will cause the underlying shares issuable under this Warrant designated by the Holder
to be registered under the Act (such event, a “Piggyback Registration”). 
 (b) Piggyback Registration
Procedures. A registration statement referred to in Section 8(a) shall be prepared and processed in accordance with the following terms and conditions: 
 (i) The Holder agrees to cooperate in furnishing promptly to the Company in writing, any information requested by the Company in connection with the preparation, filing and processing of such registration
statement and shall provide the Company with an agreement of indemnification customary in offerings of this nature. 
 (ii) The
Company shall include in the registration statement the shares of Common Stock proposed to be included in the Piggyback Registration subject to the limitations set forth in Section 8(c). 

  
 4 

 (iii) The Company shall prepare and file with the Securities and Exchange Commission (the
“SEC”) such amendments and supplements to such registration statement and the prospectuses used in connections therewith as may be required to comply with the provisions of the Act. 

(iv) The Company shall furnish to the Holder such number of copies of each prospectus, including preliminary prospectuses, in conformity
with the requirements of the Act and such other documents, as the Holder may reasonably request in order to facilitate the public sale or other disposition of the shares owned by it. 

(v) The Company shall provide a transfer agent and registrar for all such Common Stock registered pursuant to this Section 8 not
later than the Effective Date of such registration statement. 
 (vi) The Company shall, in connection with an underwritten
offering, enter into an underwriting agreement on terms customarily contained in underwriting agreements with respect to secondary distributions or combined primary and secondary distributions, as appropriate. 

(vii) The Company shall make available for inspection upon reasonable terms by the Holder, any underwriter participating in any
disposition pursuant to such registration statement, and any attorney, accountant, or other agent retained by such Holder or underwriter, all financial and other records, pertinent corporate documents and properties of the Company, and cause the
Company’s officers, directors and employees to supply all information reasonably requested by any such Holder, underwriter, attorney, accountant or agent in connection with the preparation of such registration statement, provided that as a
condition precedent to such inspection, the Company may require such inspecting party to execute and deliver a confidentiality agreement in a form to be provided by the Company. 

(viii) The Holder shall not (until further notice) effect sales of the shares covered by the registration statement after receipt of
telegraphic or written notice from the Company to suspend sales to permit the Company to correct or update registration statement or prospectus. 
 (c) Limitations. Notwithstanding the foregoing, if a Piggyback Registration is an underwritten offering and the managing underwriter advises the Company in writing that in its opinion the total
amount of securities requested to be included in such registration exceeds the amount of securities which can be sold in such offering, the Company will include in such registration: (i) first, all securities the Company proposes to sell, and
(ii) second, up to such amount of securities requested to be included in such registration by the Holders of the Company, which in the opinion of such managing underwriter can be sold. 

(d) No Net Cash Settlement. Notwithstanding anything to the contrary herein, under no circumstances will the Company be required to
net cash settle the exercise of this Warrant. 

  
 5 

 9. Notices. Whenever the Exercise Price or number of shares purchasable hereunder
shall be adjusted pursuant to Section 11 hereof, the Company shall issue a certificate signed by a duly authorized officer setting forth, in reasonable detail, the event requiring the adjustment, the amount of the adjustment, the method by
which such adjustment was calculated, and the Exercise Price and number of shares purchasable hereunder after giving effect to such adjustment, and shall cause a copy of such certificate to be mailed (by first-class mail, postage prepaid) to the
Holder of this Warrant. 
 10. Waivers and Amendments. 

(a) Any term of this Warrant may be amended or waived only with the written consent of the Company and the Holder. 

(b) No waivers of, or exceptions to, any term, condition or provision of this Warrant, in any one or more instances, shall be deemed to
be, or construed as, a further or continuing waiver of any such term, condition or provision. 
 11. Adjustments. The
Exercise Price and the number of shares purchasable hereunder are subject to adjustment from time to time as follows: 
 (a)
Merger, Sale of Assets, etc. If at any time while this Warrant, or any portion hereof, is outstanding and unexpired there shall be a: (i) reorganization (other than a combination, reclassification, exchange or subdivision of shares
otherwise provided for herein), (ii) merger or consolidation of the Company with or into another corporation in which the Company is not the surviving entity, or a reverse triangular merger in which the Company is the surviving entity but the
shares of the Company’s capital stock outstanding immediately prior to the merger are converted by virtue of the merger into other property, whether in the form of securities, cash or otherwise, or (iii) sale or transfer of the
Company’s properties and assets as, or substantially as, an entirety to any other person, then, as a part of such reorganization, merger, consolidation, sale or transfer, lawful provision shall be made so that the Holder of this Warrant shall
thereafter be entitled to receive upon exercise of this Warrant, during the period specified herein and upon payment of the Exercise Price then in effect, the number of shares of Common Stock or other securities or property of the successor
corporation resulting from such reorganization, merger, consolidation, sale or transfer that a holder of the shares deliverable upon exercise of this Warrant would have been entitled to receive in such reorganization, consolidation, merger, sale or
transfer if this Warrant had been exercised immediately before such reorganization, merger, consolidation, sale or transfer. 

(b) Reclassification, etc. If the Company, at any time while this Warrant, or any portion hereof, remains outstanding and unexpired
by reclassification of securities or otherwise, shall change any of the securities as to which purchase rights under this Warrant exist into the same or a different number of securities of any other class or classes, this Warrant shall thereafter
represent the right to acquire such number and kind of securities as would have been issuable as the result of such change with respect to the securities that were subject to the purchase rights under this Warrant immediately prior to such
reclassification or other change and the Exercise Price therefor shall be appropriately adjusted. 

  
 6 

 (c) Split, Subdivision or Combination of Shares. If the Company at any time while
this Warrant, or any portion hereof, remains outstanding and unexpired shall split, subdivide or combine the securities as to which purchase rights under this Warrant exist, into a different number of securities of the same class, then (i) the
Exercise Price for such securities shall be proportionately decreased in the case of a split or subdivision or proportionately increased in the case of a combination, and (ii) the number of shares issuable hereunder shall be proportionately
increased or decreased, as the case may be, in both cases according to the ratio which the total number of shares of such security to be outstanding immediately after such event bears to the total number of shares of such security outstanding
immediately prior to such event. 
 (d) Certificate as to Adjustments. Upon the occurrence of each adjustment or
readjustment pursuant to this Section 11, the Company at its expense shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to each Holder of this Warrant a certificate setting forth such
adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based. 
 12.
Descriptive Headings and Governing Law. The descriptive headings of the several sections and paragraphs of this Warrant are inserted for convenience only and do not constitute a part of this Warrant. This Warrant shall be construed and
enforced in accordance with, and the rights of the parties shall be governed by, the laws of the State of California without regard to conflicts of law provisions. 
 13. Speculative Value of Warrant. No Net Cash Settlement. It is understood and agreed by the Company and Holder that the Warrant as of the date of issuance has a speculative value and no definitive
value can be expressed. Holder agrees that this Warrant does not provide for a net cash settlement under any circumstances. 

IN WITNESS WHEREOF, XENONICS HOLDINGS, INC. has caused this Warrant to he executed by its officer thereunto duly authorized. 

 

							
	Dated: January 22, 2013	 		 	XENONICS HOLDINGS, INC.
				
		 		 	By:	 	 
		 		 		 	Name: Alan Magerman
		 		 		 	Title: Chairman of the Board

  
 7 

 NOTICE OF EXERCISE 

 

	To:	XENONICS HOLDINGS, INC. 

 (1)
The undersigned hereby elects to purchase [            ] shares of Common Stock of XENONICS HOLDINGS, INC., pursuant to the provisions of the attached Warrant, and tenders herewith
payment of the purchase price for such shares in full. 
 (2) In exercising this Warrant, the undersigned hereby confirms and
acknowledges that the shares of Common Stock to be issued are being acquired solely for the account of the undersigned and not as a nominee for any other party, and for investment, and that the undersigned will not offer, sell or otherwise dispose
of any such shares of Common Stock except under circumstances that will not result in a violation of the Securities Act of 1933, as amended, or any applicable state securities laws. 

(3) Please issue a certificate or certificates representing said shares of Common Stock in the name of the undersigned or in such other
name as is specified below: 
  

	
	 
	 (Name)

 (4) Please issue a new Warrant for the unexercised portion of the attached Warrant in the name of
the undersigned or in such other name as is specified below: 
  

	
	 
	 Name:

Title:

  
 8 

 ASSIGNMENT FORM 
 FOR VALUE RECEIVED, the undersigned registered owner of this Warrant hereby sells, assigns and transfers unto the Assignee named below all of the rights of the undersigned under the within Warrant, with
respect to the number of shares of Common Stock set forth below: 
  

			
	 NAME OF ASSIGNEE
                                         
   
	 	
	 ADDRESS
                                         
                       
	 	
		 	
	 NO. OF SHARES
                                         
           
	 	

 and does hereby irrevocably constitute and appoint
                         Attorney to make such transfer on the books of XENONICS HOLDINGS, INC., maintained for the purpose, with
full power of substitution in the premises. 
 The undersigned also represents that, by assignment hereof, the Assignee
acknowledges that this Warrant and the shares of stock to be issued upon exercise hereof are being acquired for investment and that the Assignee will not offer, sell or otherwise dispose of this Warrant or any shares of stock to be issued upon
exercise hereof except under circumstances which will not result in a violation of the Securities Act of 1933, as amended, or any state securities laws. Further, the Assignee has acknowledged that upon exercise of this Warrant, the Assignee shall,
if requested by the Company, confirm in writing, in a form reasonably satisfactory to the Company, that the shares of stock so purchased are being acquired for investment and not with a view toward distribution or resale. 

 

			
	 Name:
	 	 
	 (Signature must conform in all respects to name of

Holder as specified on the face of the Warrant)

		
	 Dated:
	 	 

  
 9 

 NEITHER THIS WARRANT NOR ANY OF THE SHARES OF COMMON STOCK ISSUED UPON ANY EXERCISE HEREOF HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS, AND NONE OF SUCH SECURITIES MAY BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION
STATEMENT IN EFFECT WITH RESPECT TO THIS WARRANT OR SUCH SHARES, AS APPLICABLE, UNDER SUCH ACT AND APPLICABLE LAWS OR SOME OTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO
THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED. THIS LEGEND SHALL BE ENDORSED UPON ANY WARRANT ISSUED IN EXCHANGE FOR THIS WARRANT. 
 Warrant to Purchase Shares of Common Stock 
 WARRANT TO PURCHASE COMMON STOCK

 OF 

XENONICS HOLDINGS, INC. 
  

			
	 Warrant Shares 200,000
	  	 Issue Date: January 22, 2013

 This certifies that, for value received,
                             (the “Holder”), or registered assigns, is entitled, subject to
the terms set forth below, to purchase from Xenonics Holdings, Inc., a Nevada corporation (the “Company”), at any time, and from time to time, during the term set forth in Section 1 below, fully paid, validly issued and
nonassessable shares of the Company’s $0.001 par value common stock (the “Common Stock”), upon surrender hereof, at the principal office of the Company, with the subscription form attached hereto duly executed, and simultaneous
payment therefor in lawful money of the United States, at the Exercise Price as set forth in Section 2 below. 
 1. Term
of Warrant. Subject to the terms and conditions set forth herein, this Warrant shall be exercisable, in whole or in part, at any time or from time to time, during the term commencing on the date hereof and ending January 21, 2018.

 2. Number of Shares of Common Stock: Exercise Price. 

(a) During the term of this Warrant, this Warrant may be exercised for the purchase of shares of Common Stock. 

(b) The number of shares of Common Stock that can be purchased upon the exercise of this Warrant shall be Two Hundred Thousand (200,000).

 (c) The Exercise Price at which this Warrant may be exercised shall be $.14 per share. 

 3. Exercise of Warrant. 

(a) The purchase rights represented by this Warrant are exercisable by the Holder in whole or in part, at any time, or from time to time,
during the term hereof as described in Section 1 above, by the surrender of this Warrant and the Notice of Exercise annexed hereto duly completed and executed on behalf of the Holder, at the office of the Company (or such other office or agency
of the Company as it may designate by notice in writing to the Holder at the address of the Holder appearing on the books of the Company), upon payment in cash or by check acceptable to the Company of the purchase price of the shares of Common Stock
to be purchased. 
 (b) This Warrant shall be deemed to have been exercised immediately prior to the close of business on the
date of its surrender for exercise as provided above, and the person entitled to receive the shares of Common Stock issuable upon such exercise shall be treated for all purposes as the holder of record of such shares as of the close of business on
such date. As promptly as practicable on or after such date and in any event within ten (10) days thereafter, the Company at its expense shall issue and deliver to the person or persons entitled to receive the same a certificate or certificates
for the number of shares of Common Stock issuable upon such exercise. In the event that this Warrant is exercised in part, the Company at its expense will execute and deliver a new Warrant of like tenor exercisable for the number of shares of Common
Stock for which this Warrant may then be exercised. 
 (c) All or any portion of the Exercise Price may be paid by surrendering
this Warrant with a Notice of Exercise Form annexed hereto duly executed (a “Cashless Exercise”). In the event of a Cashless Exercise, the Holder shall exchange its Warrant for that number of shares of Common Stock determined by
multiplying the number of shares of Common Stock for which the Holder desires to exercise this Warrant by a fraction, the numerator of which shall be the difference between the then current market price per shares of the Common Stock and the
Exercise Price, and the denominator of which shall be the then current market price per share of Common Stock. For purposes of any computation under this Section 3(c), the then current market price per share of Common Stock at any date shall be
deemed to be the average for the ten consecutive business days immediately prior to the Cashless Exercise of the daily closing prices of the Common Stock on the principal national securities exchange on which the Common Stock is admitted to trading
or listed, or if not then publicly traded, the fair market price of the Common Stock as determined in good faith by the Board of Directors of the Company. 
 4. No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. In lieu of any fractional share to which the Holder
would otherwise be entitled, the Company shall make a cash payment equal to the Exercise Price then in effect multiplied by such fraction. 
 5. Replacement of Warrant. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of any such loss, theft or
destruction, upon delivery of an indemnity agreement reasonably satisfactory in form and substance to the Company or, in the case of mutilation, upon surrender or cancellation of this Warrant, the Company at its expense shall execute and deliver, in
lieu of this Warrant, a new warrant of like tenor representing the right to subscribe for and purchase the shares of Common Stock which may be subscribed for and purchased hereunder. Any such new Warrant executed and delivered shall constitute an
additional contractual obligation of the Company, whether or not this Warrant so lost, stolen, destroyed or mutilated shall be at any time enforceable by anyone. 

  
 2 

 6. Rights of Stockholders. The Holder shall not be entitled to vote or receive
dividends or be deemed the holder of Common Stock or any other securities of the Company that may at any time be issuable on the exercise hereof for any purpose, nor shall anything contained herein be construed to confer upon the Holder, as such,
any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action (whether upon any
recapitalization, issuance of stock, reclassification of stock, change of par value, or change of stock to no par value, consolidation, merger, conveyance, or otherwise) or to receive notice of meetings, or to receive dividends or subscription
rights or otherwise until this Warrant shall have been exercised as provided herein. 
 7. Transfer of Warrant.

 (a) Warrant Register. The Company will maintain a register (the “Warrant Register”) containing the
names and addresses of the Holder or Holders. Any Holder of this Warrant or any portion hereof may change its address as shown on the Warrant Register by written notice to the Company requesting such change. Any notice or written communication
required or permitted to be given to the Holder may be delivered or given by mall to such Holder as shown on the Warrant Register and at the address shown on the Warrant Register. Until this Warrant is transferred on the Warrant Register of the
Company, the Company may treat the Holder as shown on the Warrant Register as the absolute owner of this Warrant for the purpose of any exercise hereof or any distribution to the Holder and for all other purposes, notwithstanding any notice to the
contrary. 
 (b) Warrant Agent. The Company may, by written notice to the Holder, appoint an agent for the purpose of
maintaining the Warrant Register referred to in Section 7(a) above, issuing the Common Stock or other securities then issuable upon the exercise of this Warrant, exchanging this Warrant, replacing this Warrant, or any or all of the foregoing.
Thereafter, any such registration, issuance, exchange, or replacement, as the case may be, shall be made at the office of such agent. 
 (c) Transferability and Nonnegotiability of Warrant. This Warrant may not be transferred or assigned in whole or in part without compliance with all applicable federal and state securities laws by
the transferor and the transferee (including the delivery of investment representation letters and legal opinions reasonably satisfactory to the Company, if such are requested by the Company). Subject to the provisions of this Warrant with respect
to compliance with the Securities Act of 1933, as amended (the “Act”), title to this Warrant may be transferred by endorsement (by the Holder executing the Assignment Form annexed hereto) and delivery in the same manner as a
negotiable instrument transferable by endorsement and delivery. 

  
 3 

 (d) Exchange of Warrant Upon a Transfer. On surrender of this Warrant for exchange,
properly endorsed on the Assignment Form and subject to the provisions of this Warrant with respect to compliance with the Act, the Company at its expense shall issue to or on the order of the Holder a new warrant or warrants to purchase Common
Stock, in substantially the form of this Warrant, in the name of the Holder or as the Holder (on payment by the Holder of any applicable transfer taxes) may direct, for the number of shares issuable upon exercise hereof. In the event of a partial
transfer by a Holder, the Company shall issue to the holders one or more appropriate new warrants. The acceptance of the new warrant by the transferee thereof shall be deemed the acceptance by such transferee of all of the rights and obligations of
a holder of a warrant. 
 (e) Compliance with Securities Laws. All shares of Common Stock issued upon exercise hereof
shall be stamped or imprinted with a legend in substantially the following form (in addition to any legend required by state securities laws): 

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION
THEREOF, AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. SUCH SHARES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS THE SALE OR TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY
REQUIREMENTS OF SAID ACT. 
 Upon the registration, under the Act, of the securities issued upon exercise of the Warrant such legend shall be
removed from the certificate evidencing such securities. 
 8. Registration. 

(a) Piggyback Registration. The Company agrees that, other than a registration statement filed on Form S-8 or to register shares
for selling shareholders to be prepared and filed within one of year of the date hereof, at any time on or before the Expiration Date the Company registers any of its securities under the Act, whether for its own account or on behalf of selling
stockholders, the Company will provide the Holder with at least forty-five (45) days prior written notice of such intention and, upon request from the Holder, will cause the underlying shares issuable under this Warrant designated by the Holder
to be registered under the Act (such event, a “Piggyback Registration”). 
 (b) Piggyback Registration
Procedures. A registration statement referred to in Section 8(a) shall be prepared and processed in accordance with the following terms and conditions: 
 (i) The Holder agrees to cooperate in furnishing promptly to the Company in writing, any information requested by the Company in connection with the preparation, filing and processing of such registration
statement and shall provide the Company with an agreement of indemnification customary in offerings of this nature. 
 (ii) The
Company shall include in the registration statement the shares of Common Stock proposed to be included in the Piggyback Registration subject to the limitations set forth in Section 8(c). 

  
 4 

 (iii) The Company shall prepare and file with the Securities and Exchange Commission (the
“SEC”) such amendments and supplements to such registration statement and the prospectuses used in connections therewith as may be required to comply with the provisions of the Act. 

(iv) The Company shall furnish to the Holder such number of copies of each prospectus, including preliminary prospectuses, in conformity
with the requirements of the Act and such other documents, as the Holder may reasonably request in order to facilitate the public sale or other disposition of the shares owned by it. 

(v) The Company shall provide a transfer agent and registrar for all such Common Stock registered pursuant to this Section 8 not
later than the Effective Date of such registration statement. 
 (vi) The Company shall, in connection with an underwritten
offering, enter into an underwriting agreement on terms customarily contained in underwriting agreements with respect to secondary distributions or combined primary and secondary distributions, as appropriate. 

(vii) The Company shall make available for inspection upon reasonable terms by the Holder, any underwriter participating in any
disposition pursuant to such registration statement, and any attorney, accountant, or other agent retained by such Holder or underwriter, all financial and other records, pertinent corporate documents and properties of the Company, and cause the
Company’s officers, directors and employees to supply all information reasonably requested by any such Holder, underwriter, attorney, accountant or agent in connection with the preparation of such registration statement, provided that as a
condition precedent to such inspection, the Company may require such inspecting party to execute and deliver a confidentiality agreement in a form to be provided by the Company. 

(viii) The Holder shall not (until further notice) effect sales of the shares covered by the registration statement after receipt of
telegraphic or written notice from the Company to suspend sales to permit the Company to correct or update registration statement or prospectus. 
 (c) Limitations. Notwithstanding the foregoing, if a Piggyback Registration is an underwritten offering and the managing underwriter advises the Company in writing that in its opinion the total
amount of securities requested to be included in such registration exceeds the amount of securities which can be sold in such offering, the Company will include in such registration: (i) first, all securities the Company proposes to sell, and
(ii) second, up to such amount of securities requested to be included in such registration by the Holders of the Company, which in the opinion of such managing underwriter can be sold. 

(d) No Net Cash Settlement. Notwithstanding anything to the contrary herein, under no circumstances will the Company be required to
net cash settle the exercise of this Warrant. 

  
 5 

 9. Notices. Whenever the Exercise Price or number of shares purchasable hereunder
shall be adjusted pursuant to Section 11 hereof, the Company shall issue a certificate signed by a duly authorized officer setting forth, in reasonable detail, the event requiring the adjustment, the amount of the adjustment, the method by
which such adjustment was calculated, and the Exercise Price and number of shares purchasable hereunder after giving effect to such adjustment, and shall cause a copy of such certificate to be mailed (by first-class mail, postage prepaid) to the
Holder of this Warrant. 
 10. Waivers and Amendments. 

(a) Any term of this Warrant may be amended or waived only with the written consent of the Company and the Holder. 

(b) No waivers of, or exceptions to, any term, condition or provision of this Warrant, in any one or more instances, shall be deemed to
be, or construed as, a further or continuing waiver of any such term, condition or provision. 
 11. Adjustments. The
Exercise Price and the number of shares purchasable hereunder are subject to adjustment from time to time as follows: 
 (a)
Merger, Sale of Assets, etc. If at any time while this Warrant, or any portion hereof, is outstanding and unexpired there shall be a: (i) reorganization (other than a combination, reclassification, exchange or subdivision of shares
otherwise provided for herein), (ii) merger or consolidation of the Company with or into another corporation in which the Company is not the surviving entity, or a reverse triangular merger in which the Company is the surviving entity but the
shares of the Company’s capital stock outstanding immediately prior to the merger are converted by virtue of the merger into other property, whether in the form of securities, cash or otherwise, or (iii) sale or transfer of the
Company’s properties and assets as, or substantially as, an entirety to any other person, then, as a part of such reorganization, merger, consolidation, sale or transfer, lawful provision shall be made so that the Holder of this Warrant shall
thereafter be entitled to receive upon exercise of this Warrant, during the period specified herein and upon payment of the Exercise Price then in effect, the number of shares of Common Stock or other securities or property of the successor
corporation resulting from such reorganization, merger, consolidation, sale or transfer that a holder of the shares deliverable upon exercise of this Warrant would have been entitled to receive in such reorganization, consolidation, merger, sale or
transfer if this Warrant had been exercised immediately before such reorganization, merger, consolidation, sale or transfer. 

(b) Reclassification, etc. If the Company, at any time while this Warrant, or any portion hereof, remains outstanding and unexpired
by reclassification of securities or otherwise, shall change any of the securities as to which purchase rights under this Warrant exist into the same or a different number of securities of any other class or classes, this Warrant shall thereafter
represent the right to acquire such number and kind of securities as would have been issuable as the result of such change with respect to the securities that were subject to the purchase rights under this Warrant immediately prior to such
reclassification or other change and the Exercise Price therefor shall be appropriately adjusted. 

  
 6 

 (c) Split, Subdivision or Combination of Shares. If the Company at any time while
this Warrant, or any portion hereof, remains outstanding and unexpired shall split, subdivide or combine the securities as to which purchase rights under this Warrant exist, into a different number of securities of the same class, then (i) the
Exercise Price for such securities shall be proportionately decreased in the case of a split or subdivision or proportionately increased in the case of a combination, and (ii) the number of shares issuable hereunder shall be proportionately
increased or decreased, as the case may be, in both cases according to the ratio which the total number of shares of such security to be outstanding immediately after such event bears to the total number of shares of such security outstanding
immediately prior to such event. 
 (d) Certificate as to Adjustments. Upon the occurrence of each adjustment or
readjustment pursuant to this Section 11, the Company at its expense shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to each Holder of this Warrant a certificate setting forth such
adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based. 
 12.
Descriptive Headings and Governing Law. The descriptive headings of the several sections and paragraphs of this Warrant are inserted for convenience only and do not constitute a part of this Warrant. This Warrant shall be construed and
enforced in accordance with, and the rights of the parties shall be governed by, the laws of the State of California without regard to conflicts of law provisions. 
 13. Speculative Value of Warrant. No Net Cash Settlement. It is understood and agreed by the Company and Holder that the Warrant as of the date of issuance has a speculative value and no definitive
value can be expressed. Holder agrees that this Warrant does not provide for a net cash settlement under any circumstances. 

IN WITNESS WHEREOF, XENONICS HOLDINGS, INC. has caused this Warrant to he executed by its officer thereunto duly authorized. 

 

							
	Dated: January 22, 2013	 		 	XENONICS HOLDINGS, INC.
				
		 		 	By:	 	 
		 		 		 	Name: Alan Magerman
		 		 		 	Title: Chairman of the Board

  
 7 

 NOTICE OF EXERCISE 
 To: XENONICS HOLDINGS, INC. 
 (1) The undersigned hereby elects to purchase
[            ] shares of Common Stock of XENONICS HOLDINGS, INC., pursuant to the provisions of the attached Warrant, and tenders herewith payment of the purchase price for such
shares in full. 
 (2) In exercising this Warrant, the undersigned hereby confirms and acknowledges that the shares of Common
Stock to be issued are being acquired solely for the account of the undersigned and not as a nominee for any other party, and for investment, and that the undersigned will not offer, sell or otherwise dispose of any such shares of Common Stock
except under circumstances that will not result in a violation of the Securities Act of 1933, as amended, or any applicable state securities laws. 
 (3) Please issue a certificate or certificates representing said shares of Common Stock in the name of the undersigned or in such other name as is specified below: 

 

	
	  
	(Name)

 (4) Please issue a new Warrant for the unexercised portion of the attached Warrant in the name of
the undersigned or in such other name as is specified below: 
  

	
	  
	Name:
	Title:

  
 8 

 ASSIGNMENT FORM 
 FOR VALUE RECEIVED, the undersigned registered owner of this Warrant hereby sells, assigns and transfers unto the Assignee named below all of the rights of the undersigned under the within Warrant, with
respect to the number of shares of Common Stock set forth below: 
 NAME OF ASSIGNEE
                                        

 ADDRESS
                                         
                     
  

 
 NO. OF SHARES
                                         
         
 and does hereby irrevocably constitute and appoint
                    Attorney to make such transfer on the books of XENONICS HOLDINGS, INC., maintained for the purpose, with full power of
substitution in the premises. 
 The undersigned also represents that, by assignment hereof, the Assignee acknowledges that this
Warrant and the shares of stock to be issued upon exercise hereof are being acquired for investment and that the Assignee will not offer, sell or otherwise dispose of this Warrant or any shares of stock to be issued upon exercise hereof except under
circumstances which will not result in a violation of the Securities Act of 1933, as amended, or any state securities laws. Further, the Assignee has acknowledged that upon exercise of this Warrant, the Assignee shall, if requested by the Company,
confirm in writing, in a form reasonably satisfactory to the Company, that the shares of stock so purchased are being acquired for investment and not with a view toward distribution or resale. 

 

			
	Name:	 	 
	 (Signature must conform in all respects to name of
 Holder as specified on the face of the Warrant)

		
	Dated:	 	 

  
 9 

 NEITHER THIS WARRANT NOR ANY OF THE SHARES OF COMMON STOCK ISSUED UPON ANY EXERCISE HEREOF HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS, AND NONE OF SUCH SECURITIES MAY BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION
STATEMENT IN EFFECT WITH RESPECT TO THIS WARRANT OR SUCH SHARES, AS APPLICABLE, UNDER SUCH ACT AND APPLICABLE LAWS OR SOME OTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO
THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED. THIS LEGEND SHALL BE ENDORSED UPON ANY WARRANT ISSUED IN EXCHANGE FOR THIS WARRANT. 
 Warrant to Purchase Shares of Common Stock 
 WARRANT TO PURCHASE COMMON STOCK

 OF 

XENONICS HOLDINGS, INC. 
  

			
	 Warrant Shares 300,000
	  	 Issue Date:January 22, 2013

 This certifies that, for value received,
                    (the “Holder”), or registered assigns, is entitled, subject to the terms set forth below, to purchase from
Xenonics Holdings, Inc., a Nevada corporation (the “Company”), at any time, and from time to time, during the term set forth in Section 1 below, fully paid, validly issued and nonassessable shares of the Company’s $0.001
par value common stock (the “Common Stock”), upon surrender hereof, at the principal office of the Company, with the subscription form attached hereto duly executed, and simultaneous payment therefor in lawful money of the United
States, at the Exercise Price as set forth in Section 2 below. 
 1. Term of Warrant. Subject to the terms and
conditions set forth herein, this Warrant shall be exercisable, in whole or in part, at any time or from time to time, during the term commencing on the date hereof and ending January 21, 2018. 

2. Number of Shares of Common Stock: Exercise Price. 
 (a) During the term of this Warrant, this Warrant may be exercised for the purchase of shares of Common Stock. 
 (b) The number of shares of Common Stock that can be purchased upon the exercise of this Warrant shall be Three Hundred Thousand (300,000). 

(c) The Exercise Price at which this Warrant may be exercised shall be $.14 per share. 

	3.	Exercise of Warrant. 

 (a)
The purchase rights represented by this Warrant are exercisable by the Holder in whole or in part, at any time, or from time to time, during the term hereof as described in Section 1 above, by the surrender of this Warrant and the Notice of
Exercise annexed hereto duly completed and executed on behalf of the Holder, at the office of the Company (or such other office or agency of the Company as it may designate by notice in writing to the Holder at the address of the Holder appearing on
the books of the Company), upon payment in cash or by check acceptable to the Company of the purchase price of the shares of Common Stock to be purchased. 
 (b) This Warrant shall be deemed to have been exercised immediately prior to the close of business on the date of its surrender for exercise as provided above, and the person entitled to receive the
shares of Common Stock issuable upon such exercise shall be treated for all purposes as the holder of record of such shares as of the close of business on such date. As promptly as practicable on or after such date and in any event within ten
(10) days thereafter, the Company at its expense shall issue and deliver to the person or persons entitled to receive the same a certificate or certificates for the number of shares of Common Stock issuable upon such exercise. In the event that
this Warrant is exercised in part, the Company at its expense will execute and deliver a new Warrant of like tenor exercisable for the number of shares of Common Stock for which this Warrant may then be exercised. 

(c) All or any portion of the Exercise Price may be paid by surrendering this Warrant with a Notice of Exercise Form annexed hereto duly
executed (a “Cashless Exercise”). In the event of a Cashless Exercise, the Holder shall exchange its Warrant for that number of shares of Common Stock determined by multiplying the number of shares of Common Stock for which the Holder
desires to exercise this Warrant by a fraction, the numerator of which shall be the difference between the then current market price per shares of the Common Stock and the Exercise Price, and the denominator of which shall be the then current market
price per share of Common Stock. For purposes of any computation under this Section 3(c), the then current market price per share of Common Stock at any date shall be deemed to be the average for the ten consecutive business days immediately
prior to the Cashless Exercise of the daily closing prices of the Common Stock on the principal national securities exchange on which the Common Stock is admitted to trading or listed, or if not then publicly traded, the fair market price of the
Common Stock as determined in good faith by the Board of Directors of the Company. 
 4. No Fractional Shares or Scrip.
No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. In lieu of any fractional share to which the Holder would otherwise be entitled, the Company shall make a cash payment equal to the
Exercise Price then in effect multiplied by such fraction. 
 5. Replacement of Warrant. Upon receipt of evidence
reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of any such loss, theft or destruction, upon delivery of an indemnity agreement reasonably satisfactory in form and substance to
the Company or, in the case of mutilation, upon surrender or cancellation of this Warrant, the Company at its expense shall execute and deliver, in lieu of this Warrant, a new warrant of like tenor representing the right to subscribe for and
purchase the shares of Common Stock which may be subscribed for and purchased hereunder. Any such new Warrant executed and delivered shall constitute an additional contractual obligation of the Company, whether or not this Warrant so lost, stolen,
destroyed or mutilated shall be at any time enforceable by anyone. 

  
 2 

 6. Rights of Stockholders. The Holder shall not be entitled to vote or receive
dividends or be deemed the holder of Common Stock or any other securities of the Company that may at any time be issuable on the exercise hereof for any purpose, nor shall anything contained herein be construed to confer upon the Holder, as such,
any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action (whether upon any
recapitalization, issuance of stock, reclassification of stock, change of par value, or change of stock to no par value, consolidation, merger, conveyance, or otherwise) or to receive notice of meetings, or to receive dividends or subscription
rights or otherwise until this Warrant shall have been exercised as provided herein. 
 7. Transfer of Warrant.

 (a) Warrant Register. The Company will maintain a register (the “Warrant Register”) containing the
names and addresses of the Holder or Holders. Any Holder of this Warrant or any portion hereof may change its address as shown on the Warrant Register by written notice to the Company requesting such change. Any notice or written communication
required or permitted to be given to the Holder may be delivered or given by mall to such Holder as shown on the Warrant Register and at the address shown on the Warrant Register. Until this Warrant is transferred on the Warrant Register of the
Company, the Company may treat the Holder as shown on the Warrant Register as the absolute owner of this Warrant for the purpose of any exercise hereof or any distribution to the Holder and for all other purposes, notwithstanding any notice to the
contrary. 
 (b) Warrant Agent. The Company may, by written notice to the Holder, appoint an agent for the purpose of
maintaining the Warrant Register referred to in Section 7(a) above, issuing the Common Stock or other securities then issuable upon the exercise of this Warrant, exchanging this Warrant, replacing this Warrant, or any or all of the foregoing.
Thereafter, any such registration, issuance, exchange, or replacement, as the case may be, shall be made at the office of such agent. 
 (c) Transferability and Nonnegotiability of Warrant. This Warrant may not be transferred or assigned in whole or in part without compliance with all applicable federal and state securities laws by
the transferor and the transferee (including the delivery of investment representation letters and legal opinions reasonably satisfactory to the Company, if such are requested by the Company). Subject to the provisions of this Warrant with respect
to compliance with the Securities Act of 1933, as amended (the “Act”), title to this Warrant may be transferred by endorsement (by the Holder executing the Assignment Form annexed hereto) and delivery in the same manner as a
negotiable instrument transferable by endorsement and delivery. 

  
 3 

 (d) Exchange of Warrant Upon a Transfer. On surrender of this Warrant for exchange,
properly endorsed on the Assignment Form and subject to the provisions of this Warrant with respect to compliance with the Act, the Company at its expense shall issue to or on the order of the Holder a new warrant or warrants to purchase Common
Stock, in substantially the form of this Warrant, in the name of the Holder or as the Holder (on payment by the Holder of any applicable transfer taxes) may direct, for the number of shares issuable upon exercise hereof. In the event of a partial
transfer by a Holder, the Company shall issue to the holders one or more appropriate new warrants. The acceptance of the new warrant by the transferee thereof shall be deemed the acceptance by such transferee of all of the rights and obligations of
a holder of a warrant. 
 (e) Compliance with Securities Laws. All shares of Common Stock issued upon exercise hereof
shall be stamped or imprinted with a legend in substantially the following form (in addition to any legend required by state securities laws): 

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION
THEREOF, AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. SUCH SHARES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS THE SALE OR TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY
REQUIREMENTS OF SAID ACT. 
 Upon the registration, under the Act, of the securities issued upon exercise of the Warrant such legend shall be
removed from the certificate evidencing such securities. 
 8. Registration. 

(a) Piggyback Registration. The Company agrees that, other than a registration statement filed on Form S-8 or to register shares
for selling shareholders to be prepared and filed within one of year of the date hereof, at any time on or before the Expiration Date the Company registers any of its securities under the Act, whether for its own account or on behalf of selling
stockholders, the Company will provide the Holder with at least forty-five (45) days prior written notice of such intention and, upon request from the Holder, will cause the underlying shares issuable under this Warrant designated by the Holder
to be registered under the Act (such event, a “Piggyback Registration”). 
 (b) Piggyback Registration
Procedures. A registration statement referred to in Section 8(a) shall be prepared and processed in accordance with the following terms and conditions: 
 (i) The Holder agrees to cooperate in furnishing promptly to the Company in writing, any information requested by the Company in connection with the preparation, filing and processing of such registration
statement and shall provide the Company with an agreement of indemnification customary in offerings of this nature. 
 (ii) The
Company shall include in the registration statement the shares of Common Stock proposed to be included in the Piggyback Registration subject to the limitations set forth in Section 8(c). 

  
 4 

 (iii) The Company shall prepare and file with the Securities and Exchange Commission (the
“SEC”) such amendments and supplements to such registration statement and the prospectuses used in connections therewith as may be required to comply with the provisions of the Act. 

(iv) The Company shall furnish to the Holder such number of copies of each prospectus, including preliminary prospectuses, in conformity
with the requirements of the Act and such other documents, as the Holder may reasonably request in order to facilitate the public sale or other disposition of the shares owned by it. 

(v) The Company shall provide a transfer agent and registrar for all such Common Stock registered pursuant to this Section 8 not
later than the Effective Date of such registration statement. 
 (vi) The Company shall, in connection with an underwritten
offering, enter into an underwriting agreement on terms customarily contained in underwriting agreements with respect to secondary distributions or combined primary and secondary distributions, as appropriate. 

(vii) The Company shall make available for inspection upon reasonable terms by the Holder, any underwriter participating in any
disposition pursuant to such registration statement, and any attorney, accountant, or other agent retained by such Holder or underwriter, all financial and other records, pertinent corporate documents and properties of the Company, and cause the
Company’s officers, directors and employees to supply all information reasonably requested by any such Holder, underwriter, attorney, accountant or agent in connection with the preparation of such registration statement, provided that as a
condition precedent to such inspection, the Company may require such inspecting party to execute and deliver a confidentiality agreement in a form to be provided by the Company. 

(viii) The Holder shall not (until further notice) effect sales of the shares covered by the registration statement after receipt of
telegraphic or written notice from the Company to suspend sales to permit the Company to correct or update registration statement or prospectus. 
 (c) Limitations. Notwithstanding the foregoing, if a Piggyback Registration is an underwritten offering and the managing underwriter advises the Company in writing that in its opinion the total
amount of securities requested to be included in such registration exceeds the amount of securities which can be sold in such offering, the Company will include in such registration: (i) first, all securities the Company proposes to sell, and
(ii) second, up to such amount of securities requested to be included in such registration by the Holders of the Company, which in the opinion of such managing underwriter can be sold. 

(d) No Net Cash Settlement. Notwithstanding anything to the contrary herein, under no circumstances will the Company be required to
net cash settle the exercise of this Warrant. 

  
 5 

 9. Notices. Whenever the Exercise Price or number of shares purchasable hereunder
shall be adjusted pursuant to Section 11 hereof, the Company shall issue a certificate signed by a duly authorized officer setting forth, in reasonable detail, the event requiring the adjustment, the amount of the adjustment, the method by
which such adjustment was calculated, and the Exercise Price and number of shares purchasable hereunder after giving effect to such adjustment, and shall cause a copy of such certificate to be mailed (by first-class mail, postage prepaid) to the
Holder of this Warrant. 
 10. Waivers and Amendments. 

(a) Any term of this Warrant may be amended or waived only with the written consent of the Company and the Holder. 

(b) No waivers of, or exceptions to, any term, condition or provision of this Warrant, in any one or more instances, shall be deemed to
be, or construed as, a further or continuing waiver of any such term, condition or provision. 
 11. Adjustments. The
Exercise Price and the number of shares purchasable hereunder are subject to adjustment from time to time as follows: 
 (a)
Merger, Sale of Assets, etc. If at any time while this Warrant, or any portion hereof, is outstanding and unexpired there shall be a: (i) reorganization (other than a combination, reclassification, exchange or subdivision of shares
otherwise provided for herein), (ii) merger or consolidation of the Company with or into another corporation in which the Company is not the surviving entity, or a reverse triangular merger in which the Company is the surviving entity but the
shares of the Company’s capital stock outstanding immediately prior to the merger are converted by virtue of the merger into other property, whether in the form of securities, cash or otherwise, or (iii) sale or transfer of the
Company’s properties and assets as, or substantially as, an entirety to any other person, then, as a part of such reorganization, merger, consolidation, sale or transfer, lawful provision shall be made so that the Holder of this Warrant shall
thereafter be entitled to receive upon exercise of this Warrant, during the period specified herein and upon payment of the Exercise Price then in effect, the number of shares of Common Stock or other securities or property of the successor
corporation resulting from such reorganization, merger, consolidation, sale or transfer that a holder of the shares deliverable upon exercise of this Warrant would have been entitled to receive in such reorganization, consolidation, merger, sale or
transfer if this Warrant had been exercised immediately before such reorganization, merger, consolidation, sale or transfer. 

(b) Reclassification, etc. If the Company, at any time while this Warrant, or any portion hereof, remains outstanding and unexpired
by reclassification of securities or otherwise, shall change any of the securities as to which purchase rights under this Warrant exist into the same or a different number of securities of any other class or classes, this Warrant shall thereafter
represent the right to acquire such number and kind of securities as would have been issuable as the result of such change with respect to the securities that were subject to the purchase rights under this Warrant immediately prior to such
reclassification or other change and the Exercise Price therefor shall be appropriately adjusted. 

  
 6 

 (c) Split, Subdivision or Combination of Shares. If the Company at any time while
this Warrant, or any portion hereof, remains outstanding and unexpired shall split, subdivide or combine the securities as to which purchase rights under this Warrant exist, into a different number of securities of the same class, then (i) the
Exercise Price for such securities shall be proportionately decreased in the case of a split or subdivision or proportionately increased in the case of a combination, and (ii) the number of shares issuable hereunder shall be proportionately
increased or decreased, as the case may be, in both cases according to the ratio which the total number of shares of such security to be outstanding immediately after such event bears to the total number of shares of such security outstanding
immediately prior to such event. 
 (d) Certificate as to Adjustments. Upon the occurrence of each adjustment or
readjustment pursuant to this Section 11, the Company at its expense shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to each Holder of this Warrant a certificate setting forth such
adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based. 
 12.
Descriptive Headings and Governing Law. The descriptive headings of the several sections and paragraphs of this Warrant are inserted for convenience only and do not constitute a part of this Warrant. This Warrant shall be construed and
enforced in accordance with, and the rights of the parties shall be governed by, the laws of the State of California without regard to conflicts of law provisions. 
 13. Speculative Value of Warrant. No Net Cash Settlement. It is understood and agreed by the Company and Holder that the Warrant as of the date of issuance has a speculative value and no definitive
value can be expressed. Holder agrees that this Warrant does not provide for a net cash settlement under any circumstances. 

IN WITNESS WHEREOF, XENONICS HOLDINGS, INC. has caused this Warrant to he executed by its officer thereunto duly authorized. 

 

							
	Dated: January 22, 2013	 		 	XENONICS HOLDINGS, INC.
				
		 		 	By:	 	 
		 		 		 	Name: Alan Magerman
		 		 		 	Title: Chairman of the Board

  
 7 

 NOTICE OF EXERCISE 

 

	To:	XENONICS HOLDINGS, INC. 

 (1)
The undersigned hereby elects to purchase [            ] shares of Common Stock of XENONICS HOLDINGS, INC., pursuant to the provisions of the attached Warrant, and tenders herewith
payment of the purchase price for such shares in full. 
 (2) In exercising this Warrant, the undersigned hereby confirms and
acknowledges that the shares of Common Stock to be issued are being acquired solely for the account of the undersigned and not as a nominee for any other party, and for investment, and that the undersigned will not offer, sell or otherwise dispose
of any such shares of Common Stock except under circumstances that will not result in a violation of the Securities Act of 1933, as amended, or any applicable state securities laws. 

(3) Please issue a certificate or certificates representing said shares of Common Stock in the name of the undersigned or in such other
name as is specified below: 
  

	
	  
	   

	(Name)

 (4) Please issue a new Warrant for the unexercised portion of the attached Warrant in the name of
the undersigned or in such other name as is specified below: 
  

	
	  
	   

	 Name:

Title:

  
 8 

 ASSIGNMENT FORM 
 FOR VALUE RECEIVED, the undersigned registered owner of this Warrant hereby sells, assigns and transfers unto the Assignee named below all of the rights of the undersigned under the within Warrant, with
respect to the number of shares of Common Stock set forth below: 
  

			
	NAME OF
ASSIGNEE                                       
                                         
   	 	
	
ADDRESS                       
                                         
                                         
  
	 	
	 	 	
	 NO. OF
SHARES                                        
                                         
             
	 	

 and does hereby irrevocably constitute and
appoint                     Attorney to make such transfer on the books of XENONICS HOLDINGS, INC., maintained for the purpose, with full power of
substitution in the premises. 
 The undersigned also represents that, by assignment hereof, the Assignee acknowledges that this
Warrant and the shares of stock to be issued upon exercise hereof are being acquired for investment and that the Assignee will not offer, sell or otherwise dispose of this Warrant or any shares of stock to be issued upon exercise hereof except under
circumstances which will not result in a violation of the Securities Act of 1933, as amended, or any state securities laws. Further, the Assignee has acknowledged that upon exercise of this Warrant, the Assignee shall, if requested by the Company,
confirm in writing, in a form reasonably satisfactory to the Company, that the shares of stock so purchased are being acquired for investment and not with a view toward distribution or resale. 

 

			
	Name:                             
                                         
                                         
     	 	
	 (Signature must conform in all respects to name of
 Holder as specified on the face of the Warrant)
	 	
		
	Dated:                            
                                         
                                         
      	 	

  
 9 

 NEITHER THIS WARRANT NOR ANY OF THE SHARES OF COMMON STOCK ISSUED UPON ANY EXERCISE HEREOF HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS, AND NONE OF SUCH SECURITIES MAY BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION
STATEMENT IN EFFECT WITH RESPECT TO THIS WARRANT OR SUCH SHARES, AS APPLICABLE, UNDER SUCH ACT AND APPLICABLE LAWS OR SOME OTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO
THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED. THIS LEGEND SHALL BE ENDORSED UPON ANY WARRANT ISSUED IN EXCHANGE FOR THIS WARRANT. 
 Warrant to Purchase Shares of Common Stock 
 WARRANT TO PURCHASE COMMON STOCK

 OF 

XENONICS HOLDINGS, INC. 
  

			
	Warrant Shares 300,000	  	Issue Date: January 22, 2013

 This certifies that, for value received,
            (the “Holder”), or registered assigns, is entitled, subject to the terms set forth below, to purchase from Xenonics Holdings, Inc., a Nevada corporation (the
“Company”), at any time, and from time to time, during the term set forth in Section 1 below, fully paid, validly issued and nonassessable shares of the Company’s $0.001 par value common stock (the “Common
Stock”), upon surrender hereof, at the principal office of the Company, with the subscription form attached hereto duly executed, and simultaneous payment therefor in lawful money of the United States, at the Exercise Price as set forth in
Section 2 below. 
 1. Term of Warrant. Subject to the terms and conditions set forth herein, this Warrant shall be
exercisable, in whole or in part, at any time or from time to time, during the term commencing on the date hereof and ending January 21, 2018. 
 2. Number of Shares of Common Stock: Exercise Price. 
 (a) During the term
of this Warrant, this Warrant may be exercised for the purchase of shares of Common Stock. 
 (b) The number of shares of Common
Stock that can be purchased upon the exercise of this Warrant shall be Three Hundred Thousand (300,000). 
 (c) The Exercise
Price at which this Warrant may be exercised shall be $.14 per share. 

 3. Exercise of Warrant. 

(a) The purchase rights represented by this Warrant are exercisable by the Holder in whole or in part, at any time, or from time to time,
during the term hereof as described in Section 1 above, by the surrender of this Warrant and the Notice of Exercise annexed hereto duly completed and executed on behalf of the Holder, at the office of the Company (or such other office or agency
of the Company as it may designate by notice in writing to the Holder at the address of the Holder appearing on the books of the Company), upon payment in cash or by check acceptable to the Company of the purchase price of the shares of Common Stock
to be purchased. 
 (b) This Warrant shall be deemed to have been exercised immediately prior to the close of business on the
date of its surrender for exercise as provided above, and the person entitled to receive the shares of Common Stock issuable upon such exercise shall be treated for all purposes as the holder of record of such shares as of the close of business on
such date. As promptly as practicable on or after such date and in any event within ten (10) days thereafter, the Company at its expense shall issue and deliver to the person or persons entitled to receive the same a certificate or certificates
for the number of shares of Common Stock issuable upon such exercise. In the event that this Warrant is exercised in part, the Company at its expense will execute and deliver a new Warrant of like tenor exercisable for the number of shares of Common
Stock for which this Warrant may then be exercised. 
 (c) All or any portion of the Exercise Price may be paid by surrendering
this Warrant with a Notice of Exercise Form annexed hereto duly executed (a “Cashless Exercise”). In the event of a Cashless Exercise, the Holder shall exchange its Warrant for that number of shares of Common Stock determined by
multiplying the number of shares of Common Stock for which the Holder desires to exercise this Warrant by a fraction, the numerator of which shall be the difference between the then current market price per shares of the Common Stock and the
Exercise Price, and the denominator of which shall be the then current market price per share of Common Stock. For purposes of any computation under this Section 3(c), the then current market price per share of Common Stock at any date shall be
deemed to be the average for the ten consecutive business days immediately prior to the Cashless Exercise of the daily closing prices of the Common Stock on the principal national securities exchange on which the Common Stock is admitted to trading
or listed, or if not then publicly traded, the fair market price of the Common Stock as determined in good faith by the Board of Directors of the Company. 
 4. No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. In lieu of any fractional share to which the Holder
would otherwise be entitled, the Company shall make a cash payment equal to the Exercise Price then in effect multiplied by such fraction. 
 5. Replacement of Warrant. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of any such loss, theft or
destruction, upon delivery of an indemnity agreement reasonably satisfactory in form and substance to the Company or, in the case of mutilation, upon surrender or cancellation of this Warrant, the Company at its expense shall execute and deliver, in
lieu of this Warrant, a new warrant of like tenor representing the right to subscribe for and purchase the shares of Common Stock which may be subscribed for and purchased hereunder. Any such new Warrant executed and delivered shall constitute an
additional contractual obligation of the Company, whether or not this Warrant so lost, stolen, destroyed or mutilated shall be at any time enforceable by anyone. 

  
 2 

 6. Rights of Stockholders. The Holder shall not be entitled to vote or receive
dividends or be deemed the holder of Common Stock or any other securities of the Company that may at any time be issuable on the exercise hereof for any purpose, nor shall anything contained herein be construed to confer upon the Holder, as such,
any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action (whether upon any
recapitalization, issuance of stock, reclassification of stock, change of par value, or change of stock to no par value, consolidation, merger, conveyance, or otherwise) or to receive notice of meetings, or to receive dividends or subscription
rights or otherwise until this Warrant shall have been exercised as provided herein. 
 7. Transfer of Warrant.

 (a) Warrant Register. The Company will maintain a register (the “Warrant Register”) containing the
names and addresses of the Holder or Holders. Any Holder of this Warrant or any portion hereof may change its address as shown on the Warrant Register by written notice to the Company requesting such change. Any notice or written communication
required or permitted to be given to the Holder may be delivered or given by mall to such Holder as shown on the Warrant Register and at the address shown on the Warrant Register. Until this Warrant is transferred on the Warrant Register of the
Company, the Company may treat the Holder as shown on the Warrant Register as the absolute owner of this Warrant for the purpose of any exercise hereof or any distribution to the Holder and for all other purposes, notwithstanding any notice to the
contrary. 
 (b) Warrant Agent. The Company may, by written notice to the Holder, appoint an agent for the purpose of
maintaining the Warrant Register referred to in Section 7(a) above, issuing the Common Stock or other securities then issuable upon the exercise of this Warrant, exchanging this Warrant, replacing this Warrant, or any or all of the foregoing.
Thereafter, any such registration, issuance, exchange, or replacement, as the case may be, shall be made at the office of such agent. 
 (c) Transferability and Nonnegotiability of Warrant. This Warrant may not be transferred or assigned in whole or in part without compliance with all applicable federal and state securities laws by
the transferor and the transferee (including the delivery of investment representation letters and legal opinions reasonably satisfactory to the Company, if such are requested by the Company). Subject to the provisions of this Warrant with respect
to compliance with the Securities Act of 1933, as amended (the “Act”), title to this Warrant may be transferred by endorsement (by the Holder executing the Assignment Form annexed hereto) and delivery in the same manner as a
negotiable instrument transferable by endorsement and delivery. 

  
 3 

 (d) Exchange of Warrant Upon a Transfer. On surrender of this Warrant for exchange,
properly endorsed on the Assignment Form and subject to the provisions of this Warrant with respect to compliance with the Act, the Company at its expense shall issue to or on the order of the Holder a new warrant or warrants to purchase Common
Stock, in substantially the form of this Warrant, in the name of the Holder or as the Holder (on payment by the Holder of any applicable transfer taxes) may direct, for the number of shares issuable upon exercise hereof. In the event of a partial
transfer by a Holder, the Company shall issue to the holders one or more appropriate new warrants. The acceptance of the new warrant by the transferee thereof shall be deemed the acceptance by such transferee of all of the rights and obligations of
a holder of a warrant. 
 (e) Compliance with Securities Laws. All shares of Common Stock issued upon exercise hereof
shall be stamped or imprinted with a legend in substantially the following form (in addition to any legend required by state securities laws): 

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION
THEREOF, AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. SUCH SHARES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS THE SALE OR TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY
REQUIREMENTS OF SAID ACT. 
 Upon the registration, under the Act, of the securities issued upon exercise of the Warrant such legend shall be
removed from the certificate evidencing such securities. 
 8. Registration. 

(a) Piggyback Registration. The Company agrees that, other than a registration statement filed on Form S-8 or to register shares
for selling shareholders to be prepared and filed within one of year of the date hereof, at any time on or before the Expiration Date the Company registers any of its securities under the Act, whether for its own account or on behalf of selling
stockholders, the Company will provide the Holder with at least forty-five (45) days prior written notice of such intention and, upon request from the Holder, will cause the underlying shares issuable under this Warrant designated by the Holder
to be registered under the Act (such event, a “Piggyback Registration”). 
 (b) Piggyback Registration
Procedures. A registration statement referred to in Section 8(a) shall be prepared and processed in accordance with the following terms and conditions: 
 (i) The Holder agrees to cooperate in furnishing promptly to the Company in writing, any information requested by the Company in connection with the preparation, filing and processing of such registration
statement and shall provide the Company with an agreement of indemnification customary in offerings of this nature. 
 (ii) The
Company shall include in the registration statement the shares of Common Stock proposed to be included in the Piggyback Registration subject to the limitations set forth in Section 8(c). 

  
 4 

 (iii) The Company shall prepare and file with the Securities and Exchange Commission (the
“SEC”) such amendments and supplements to such registration statement and the prospectuses used in connections therewith as may be required to comply with the provisions of the Act. 

(iv) The Company shall furnish to the Holder such number of copies of each prospectus, including preliminary prospectuses, in conformity
with the requirements of the Act and such other documents, as the Holder may reasonably request in order to facilitate the public sale or other disposition of the shares owned by it. 

(v) The Company shall provide a transfer agent and registrar for all such Common Stock registered pursuant to this Section 8 not
later than the Effective Date of such registration statement. 
 (vi) The Company shall, in connection with an underwritten
offering, enter into an underwriting agreement on terms customarily contained in underwriting agreements with respect to secondary distributions or combined primary and secondary distributions, as appropriate. 

(vii) The Company shall make available for inspection upon reasonable terms by the Holder, any underwriter participating in any
disposition pursuant to such registration statement, and any attorney, accountant, or other agent retained by such Holder or underwriter, all financial and other records, pertinent corporate documents and properties of the Company, and cause the
Company’s officers, directors and employees to supply all information reasonably requested by any such Holder, underwriter, attorney, accountant or agent in connection with the preparation of such registration statement, provided that as a
condition precedent to such inspection, the Company may require such inspecting party to execute and deliver a confidentiality agreement in a form to be provided by the Company. 

(viii) The Holder shall not (until further notice) effect sales of the shares covered by the registration statement after receipt of
telegraphic or written notice from the Company to suspend sales to permit the Company to correct or update registration statement or prospectus. 
 (c) Limitations. Notwithstanding the foregoing, if a Piggyback Registration is an underwritten offering and the managing underwriter advises the Company in writing that in its opinion the total
amount of securities requested to be included in such registration exceeds the amount of securities which can be sold in such offering, the Company will include in such registration: (i) first, all securities the Company proposes to sell, and
(ii) second, up to such amount of securities requested to be included in such registration by the Holders of the Company, which in the opinion of such managing underwriter can be sold. 

(d) No Net Cash Settlement. Notwithstanding anything to the contrary herein, under no circumstances will the Company be required to
net cash settle the exercise of this Warrant. 

  
 5 

 9. Notices. Whenever the Exercise Price or number of shares purchasable hereunder
shall be adjusted pursuant to Section 11 hereof, the Company shall issue a certificate signed by a duly authorized officer setting forth, in reasonable detail, the event requiring the adjustment, the amount of the adjustment, the method by
which such adjustment was calculated, and the Exercise Price and number of shares purchasable hereunder after giving effect to such adjustment, and shall cause a copy of such certificate to be mailed (by first-class mail, postage prepaid) to the
Holder of this Warrant. 
 10. Waivers and Amendments. 

(a) Any term of this Warrant may be amended or waived only with the written consent of the Company and the Holder. 

(b) No waivers of, or exceptions to, any term, condition or provision of this Warrant, in any one or more instances, shall be deemed to
be, or construed as, a further or continuing waiver of any such term, condition or provision. 
 11. Adjustments. The
Exercise Price and the number of shares purchasable hereunder are subject to adjustment from time to time as follows: 
 (a)
Merger, Sale of Assets, etc. If at any time while this Warrant, or any portion hereof, is outstanding and unexpired there shall be a: (i) reorganization (other than a combination, reclassification, exchange or subdivision of shares
otherwise provided for herein), (ii) merger or consolidation of the Company with or into another corporation in which the Company is not the surviving entity, or a reverse triangular merger in which the Company is the surviving entity but the
shares of the Company’s capital stock outstanding immediately prior to the merger are converted by virtue of the merger into other property, whether in the form of securities, cash or otherwise, or (iii) sale or transfer of the
Company’s properties and assets as, or substantially as, an entirety to any other person, then, as a part of such reorganization, merger, consolidation, sale or transfer, lawful provision shall be made so that the Holder of this Warrant shall
thereafter be entitled to receive upon exercise of this Warrant, during the period specified herein and upon payment of the Exercise Price then in effect, the number of shares of Common Stock or other securities or property of the successor
corporation resulting from such reorganization, merger, consolidation, sale or transfer that a holder of the shares deliverable upon exercise of this Warrant would have been entitled to receive in such reorganization, consolidation, merger, sale or
transfer if this Warrant had been exercised immediately before such reorganization, merger, consolidation, sale or transfer. 

(b) Reclassification, etc. If the Company, at any time while this Warrant, or any portion hereof, remains outstanding and unexpired
by reclassification of securities or otherwise, shall change any of the securities as to which purchase rights under this Warrant exist into the same or a different number of securities of any other class or classes, this Warrant shall thereafter
represent the right to acquire such number and kind of securities as would have been issuable as the result of such change with respect to the securities that were subject to the purchase rights under this Warrant immediately prior to such
reclassification or other change and the Exercise Price therefor shall be appropriately adjusted. 

  
 6 

 (c) Split, Subdivision or Combination of Shares. If the Company at any time while
this Warrant, or any portion hereof, remains outstanding and unexpired shall split, subdivide or combine the securities as to which purchase rights under this Warrant exist, into a different number of securities of the same class, then (i) the
Exercise Price for such securities shall be proportionately decreased in the case of a split or subdivision or proportionately increased in the case of a combination, and (ii) the number of shares issuable hereunder shall be proportionately
increased or decreased, as the case may be, in both cases according to the ratio which the total number of shares of such security to be outstanding immediately after such event bears to the total number of shares of such security outstanding
immediately prior to such event. 
 (d) Certificate as to Adjustments. Upon the occurrence of each adjustment or
readjustment pursuant to this Section 11, the Company at its expense shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to each Holder of this Warrant a certificate setting forth such
adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based. 
 12.
Descriptive Headings and Governing Law. The descriptive headings of the several sections and paragraphs of this Warrant are inserted for convenience only and do not constitute a part of this Warrant. This Warrant shall be construed and
enforced in accordance with, and the rights of the parties shall be governed by, the laws of the State of California without regard to conflicts of law provisions. 
 13. Speculative Value of Warrant. No Net Cash Settlement. It is understood and agreed by the Company and Holder that the Warrant as of the date of issuance has a speculative value and no definitive
value can be expressed. Holder agrees that this Warrant does not provide for a net cash settlement under any circumstances. 

IN WITNESS WHEREOF, XENONICS HOLDINGS, INC. has caused this Warrant to he executed by its officer thereunto duly authorized. 

 

							
		 		 	XENONICS HOLDINGS, INC.
				
	Dated: January 22, 2013	 		 	By:	 	 
		 		 		 	Name: Alan Magerman
		 		 		 	Title: Chairman of the Board

  
 7 

 NOTICE OF EXERCISE 

 

	To:	XENONICS HOLDINGS, INC. 

 (1)
The undersigned hereby elects to purchase [            ] shares of Common Stock of XENONICS HOLDINGS, INC., pursuant to the provisions of the attached Warrant, and tenders herewith
payment of the purchase price for such shares in full. 
 (2) In exercising this Warrant, the undersigned hereby confirms and
acknowledges that the shares of Common Stock to be issued are being acquired solely for the account of the undersigned and not as a nominee for any other party, and for investment, and that the undersigned will not offer, sell or otherwise dispose
of any such shares of Common Stock except under circumstances that will not result in a violation of the Securities Act of 1933, as amended, or any applicable state securities laws. 

(3) Please issue a certificate or certificates representing said shares of Common Stock in the name of the undersigned or in such other
name as is specified below: 
  

	
	  
	   

	(Name)

 (4) Please issue a new Warrant for the unexercised portion of the attached Warrant in the name of
the undersigned or in such other name as is specified below: 
  

	
	  
	   

	 Name:

Title:

  
 8 

 ASSIGNMENT FORM 
 FOR VALUE RECEIVED, the undersigned registered owner of this Warrant hereby sells, assigns and transfers unto the Assignee named below all of the rights of the undersigned under the within Warrant, with
respect to the number of shares of Common Stock set forth below: 
  

					
	NAME OF ASSIGNEE
                                	 		 	
	ADDRESS
                                         
   	 		 	
			
	 	 		 	
	
NO. OF SHARES                    
                    
	 		 	

 and does hereby irrevocably constitute and appoint
                    Attorney to make such transfer on the books of XENONICS HOLDINGS, INC., maintained for the purpose, with full power of
substitution in the premises. 
 The undersigned also represents that, by assignment hereof, the Assignee acknowledges that this
Warrant and the shares of stock to be issued upon exercise hereof are being acquired for investment and that the Assignee will not offer, sell or otherwise dispose of this Warrant or any shares of stock to be issued upon exercise hereof except under
circumstances which will not result in a violation of the Securities Act of 1933, as amended, or any state securities laws. Further, the Assignee has acknowledged that upon exercise of this Warrant, the Assignee shall, if requested by the Company,
confirm in writing, in a form reasonably satisfactory to the Company, that the shares of stock so purchased are being acquired for investment and not with a view toward distribution or resale. 

 

			
	Name:	 	 
	 (Signature must conform in all respects to name of
 Holder as specified on the face of the Warrant)

		
	Dated:	 	 

  
 9 

 Promissory Note 

 

			
	$50,000	  	January 22, 2013

 FOR VALUE RECEIVED, the undersigned, Xenonics Holdings, Inc, (“Maker”) hereby promises to pay
to the order of                     , the principal amount of Fifty Thousand Dollars ($50,000), together with interest thereon. 

Interest shall accrue on the outstanding principal balance of this Note at the rate of 13% per annum, payable quarterly on
June 15, 2013 and September 15, 2013. 
 The entire principal of this Note together with any accrued interest shall be
due and payable on October 31, 2013, subject to prepayment at an earlier time in accordance with Maker’s cash flow projections attached hereto as Exhibit A. In addition to the foregoing, this Note may be voluntarily prepaid from time to
time, in whole or in part, without notice and without premium or penalty. All amounts owing by Maker hereunder shall be secured by substantially all of the assets of the Company. 

If this Note is not paid in accordance with the terms hereof, Maker agrees to pay all costs and expenses of collection when incurred,
including, without limitation, reasonable attorneys’ fees and expenses and court costs. 
 Principal and interest shall be
payable in lawful money of the United States and shall be made at such place as the holder hereof shall have designated to Maker in writing for such purpose. 
 This Note is being delivered and is intended to be performed in the State of California, and shall be governed by and construed and enforced in accordance with the laws of California. 

 

			
	XENONICS HOLDINGS, INC.
		
	 By:
	 	 
		 	Alan P. Magerman, Chairman

 Promissory Note 

 

			
	$100,000	  	January 22, 2013

 FOR VALUE RECEIVED, the undersigned, Xenonics Holdings, Inc. (“Maker”) hereby promises to pay
to the order of                     , the principal amount of One Hundred Thousand Dollars ($100,000), together with interest thereon. 

Interest shall accrue on the outstanding principal balance of this Note at the rate of 13% per annum, payable quarterly on
June 15, 2013 and September 15, 2013. 
 The entire principal of this Note together with any accrued interest shall be
due and payable on October 31, 2013, subject to prepayment at an earlier time in accordance with Maker’s cash flow projections attached hereto as Exhibit A. In addition to the foregoing, this Note may be voluntarily prepaid from time to
time, in whole or in part, without notice and without premium or penalty. All amounts owing by Maker hereunder shall be secured by substantially all of the assets of the Company. 

If this Note is not paid in accordance with the terms hereof, Maker agrees to pay all costs and expenses of collection when incurred,
including, without limitation, reasonable attorneys’ fees and expenses and court costs. 
 Principal and interest shall be
payable in lawful money of the United States and shall be made at such place as the holder hereof shall have designated to Maker in writing for such purpose. 
 This Note is being delivered and is intended to be performed in the State of California, and shall be governed by and construed and enforced in accordance with the laws of California. 

 

			
	XENONICS HOLDINGS, INC.
		
	By:	 	 
		 	Alan P. Magerman, Chairman

 Promissory Note 

 

			
	$100,000	  	January 22, 2013

 FOR VALUE RECEIVED, the undersigned, Xenonics Holdings, Inc. (“Maker”) hereby promises to pay
to the order of                     , the principal amount of One Hundred Thousand Dollars ($100,000), together with interest thereon. 

Interest shall accrue on the outstanding principal balance of this Note at the rate of 13% per annum, payable quarterly on
June 15, 2013 and September 15, 2013. 
 The entire principal of this Note together with any accrued interest shall be
due and payable on October 31, 2013, subject to prepayment at an earlier time in accordance with Maker’s cash flow projections attached hereto as Exhibit A. In addition to the foregoing, this Note may be voluntarily prepaid from time to
time, in whole or in part, without notice and without premium or penalty. All amounts owing by Maker hereunder shall be secured by substantially all of the assets of the Company. 

If this Note is not paid in accordance with the terms hereof, Maker agrees to pay all costs and expenses of collection when incurred,
including, without limitation, reasonable attorneys’ fees and expenses and court costs. 
 Principal and interest shall be
payable in lawful money of the United States and shall be made at such place as the holder hereof shall have designated to Maker in writing for such purpose. 
 This Note is being delivered and is intended to be performed in the State of California, and shall be governed by and construed and enforced in accordance with the laws of California. 

 

			
	XENONICS HOLDINGS, INC.
		
	By	 	 
		 	Alan P. Magerman, Chairman

 Promissory Note 

 

			
	$200,000	  	January 22, 2013

 FOR VALUE RECEIVED, the undersigned, Xenonics Holdings, Inc. (“Maker”) hereby promises to pay
to the order of                     , the principal amount of Two Hundred Thousand Dollars ($200,000), together with interest thereon. 

Interest shall accrue on the outstanding principal balance of this Note at the rate of 13% per annum, payable quarterly on
June 15, 2013 and September 15, 2013. 
 The entire principal of this Note together with any accrued interest shall be
due and payable on October 31, 2013, subject to prepayment at an earlier time in accordance with Maker’s cash flow projections attached hereto as Exhibit A. In addition to the foregoing, this Note may be voluntarily prepaid from time to
time, in whole or in part, without notice and without premium or penalty. All amounts owing by Maker hereunder shall be secured by substantially all of the assets of the Company. 

If this Note is not paid in accordance with the terms hereof, Maker agrees to pay all costs and expenses of collection when incurred,
including, without limitation, reasonable attorneys’ fees and expenses and court costs. 
 Principal and interest shall be
payable in lawful money of the United States and shall be made at such place as the holder hereof shall have designated to Maker in writing for such purpose. 
 This Note is being delivered and is intended to be performed in the State of California, and shall be governed by and construed and enforced in accordance with the laws of California. 

 

			
	XENONICS HOLDINGS, INC.
		
	By:	 	 
		 	Alan P. Magerman, ChairmanEX-10.1.(a)

 Exhibit 10.1(a) 
 JOHNSON CONTROLS, INC. 
 2012 OMNIBUS INCENTIVE PLAN 

1.           Purpose and Effective Date. 

(a)         Purpose. The Johnson Controls, Inc. 2012 Omnibus Incentive Plan has two
complementary purposes: (i) to attract and retain outstanding individuals to serve as officers and employees and (ii) to increase shareholder value. This Plan will provide participants incentives to increase shareholder value by offering
the opportunity to acquire shares of the Company’s common stock, or receive monetary payments, on the potentially favorable terms that this Plan provides. 
 (b)         Effective Date. This Plan will become effective on September 25, 2012 (the “Effective Date”), subject to the approval of the
Company’s shareholders within twelve (12) months of the Effective Date. Awards may be granted under this Plan on and after the Effective Date, provided that any Awards granted prior to the date that the Plan is approved by the
Company’s shareholders shall be conditioned on such shareholder approval. 
 (c)
        Prior Plans. If the Company’s shareholders approve this Plan, then the Johnson Controls, Inc. 2007 Stock Option Plan, the Johnson Controls, Inc. 2001 Restricted Stock Plan, the Johnson
Controls, Inc. Annual Incentive Performance Plan and the Johnson Controls, Inc. Long-Term Incentive Performance Plan (collectively, the “Prior Plans”) will terminate on the date of such shareholder approval, and no new awards will be
granted under the Prior Plans after their termination date; provided that the Prior Plans will continue to govern awards outstanding as of the date of the Prior Plans’ termination and such awards shall continue in force and effect until fully
distributed or terminated pursuant to their terms. 
 2.
          Definitions. Capitalized terms used in this Plan have the meanings given below. Additional defined terms are set forth in other sections of this Plan. 

(a)         “10% Shareholder” means an Eligible Employee who, as of the date an ISO is
granted to such individual, owns more than ten percent (10%) of the total combined voting power of all classes of Stock then issued by the Company or a Subsidiary corporation. 

(b)         “Administrator” means the Committee. In addition, subject to any
limitations imposed by law and any restrictions imposed by the Committee, the Chief Executive Officer of the Company may act as the Administrator with respect to Awards granted (or to be granted) to employees who are not Section 16 Participants
or subject to Code Section 162(m) at the time such authority or responsibility is exercised. 
 (c)
        “Affiliate” means any entity that, directly or through one or more intermediaries, is controlled by, controls, or is under common control with the Company within the meaning of Code Sections
414(b) or (c), provided that, in applying such provisions, the phrase “at least 50 percent” shall be used in place of “at least 80 percent” each place it appears therein. 

(d)         “Affiliated Company” or “Affiliated Companies” shall include any
company or companies controlled by, controlling or under common control with the Company; provided that when determining when a Participant has experienced a separation from service for purposes of the Plan, control shall be determined pursuant to
Code Sections 414(b) or (c), except that the phrase “at least 50 percent” shall be used in place of the phrase “at least 80 percent” in each place it appears in the regulations thereunder. 

 (e)         “Award” means a grant of
Options, Stock Appreciation Rights, Performance Shares, Performance Units, Restricted Stock, Restricted Stock Units, Deferred Stock Rights, Dividend Equivalent Units, an Annual Incentive Award, a Long-Term Incentive Award, or any other type of award
permitted under the Plan. 
 (f)         “Beneficial Ownership” (or
derivatives thereof) shall have the meaning ascribed to such term in Rule 13d-3 of the General Rules and Regulations under the Exchange Act. 
 (g)         “Board” means the Board of Directors of the Company. 
 (h)         “Cause” means (1) if the Participant is subject to an employment agreement with the Company or an Affiliate that contains a definition of
“cause”, such definition, or (2) otherwise, except as otherwise determined by the Administrator and set forth in an Award agreement, any of the following as determined by the Administrator: (A) violation of the provisions of any
employment agreement, non-competition agreement, confidentiality agreement, or similar agreement with the Company or an Affiliate, or the Company’s or an Affiliate’s code of ethics, as then in effect, (B) conduct rising to the level
of gross negligence or willful misconduct in the course of employment with the Company or an Affiliate, (C) commission of an act of dishonesty or disloyalty involving the Company or an Affiliate, (D) violation of any federal, state or
local law in connection with the Participant’s employment or service, or (E) breach of any fiduciary duty to the Company or an Affiliate. 
 (i)         “Change of Control” means the first to occur of the following events: 

(i)         The acquisition by any Person of beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) of 35% or more of either (A) the then-outstanding Shares (the “Outstanding Company Common Stock”) or (B) the combined voting power of the then-outstanding voting
securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that the following acquisitions shall not constitute a Change of Control: (1) any
acquisition directly from the Company, (2) any acquisition by the Company, (3) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Affiliated Company or (4) any acquisition by
any corporation pursuant to a transaction that complies with Sections 2(i)(iii)(A) – 2(i)(iii)(C); 
 (ii)
        Any time at which individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however,
that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board
shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect
to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; 
 (iii)         Consummation of a reorganization, merger, statutory share exchange or consolidation or similar corporate transaction involving the Company or any of
its subsidiaries, a sale or other disposition of all or substantially all of the assets of the Company, or the acquisition of assets or stock of another entity by the Company or any 

  
 2 

 
of its subsidiaries (each, a “Business Combination”), in each case unless, following such Business Combination, (A) all or substantially all of the individuals and entities that
were the beneficial owners of the Outstanding Company Common Stock and the Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the then-outstanding shares of
common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without
limitation, a corporation that, as a result of such transaction, owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership
immediately prior to such Business Combination of the Outstanding Company Common Stock and the Outstanding Company Voting Securities, as the case may be, (B) no Person (excluding any corporation resulting from such Business Combination or any
employee benefit plan (or related trust) of the Company or an Affiliated Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 35% or more of, respectively, the then-outstanding shares of
common stock of the corporation resulting from such Business Combination or the combined voting power of the then-outstanding voting securities of such corporation, except to the extent that such ownership existed prior to the Business Combination,
and (C) at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement or of the action of the
Board providing for such Business Combination; or 
 (iv)
        Approval by the shareholders of the Company of a complete liquidation or dissolution of the Company. 
 Notwithstanding the foregoing, for purposes of an Award (1) that provides for the payment of deferred compensation that is subject to Code Section 409A or (2) with respect to which the
Company permits a deferral election, the definition of Change of Control herein shall be deemed amended to conform to the requirements of Code Section 409A to the extent necessary for the Award and deferral election to comply with Code
Section 409A. 
 (j)         “Code” means the Internal Revenue Code of
1986, as amended. Any reference to a specific provision of the Code includes any successor provision and the regulations promulgated under such provision. 
 (k)         “Commission” means the United States Securities and Exchange Commission or any successor agency. 

(l)         “Committee” means the Compensation Committee of the Board (or a successor
committee with the same or similar authority), or such other committee of the Board designated by the Board to administer the Plan and composed of no fewer than two directors, each of whom is a “non-employee director” within the meaning of
Rule 16b-3 and an “outside director” within the meaning of Code Section 162(m)(4)(C); provided that if no such committee shall be in existence at any time, the functions of the Committee shall be carried out by the Board. 

(m)         “Company” means Johnson Controls, Inc., a Wisconsin corporation, or any
successor thereto. 

  
 3 

 (n)         “Deferred Compensation Plan”
means the Johnson Controls, Inc. Executive Deferred Compensation Plan, as from time to time amended and in effect. 
 (o)
        “Deferred Stock Right” means the right to receive Stock or Restricted Stock at some future time. 
 (p)         “Director” means a member of the Board, and “Non-Employee Director” means a Director who is not also an officer or an employee of
the Company or an Affiliate. 
 (q)         “Disability” means, except as
otherwise determined by the Administrator and set forth in an Award agreement: (i) with respect to an ISO, the meaning given in Code Section 22(e)(3), and (ii) with respect to all other Awards, the inability to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of at least twelve (12) months, as determined by the
Administrator. The Administrator shall make the determination of Disability and may request such evidence of disability as it reasonably determines. 
 (r)         “Dividend Equivalent Unit” means the right to receive a payment, in cash or property, equal to the cash dividends or other distributions paid
with respect to a Share. 
 (s)         “Eligible Employee” means any officer
or other employee of the Company or of any Affiliate, or any individual that the Company or an Affiliate has engaged to become an officer or employee. 
 (t)         “Exchange Act” means the Securities Exchange Act of 1934, as amended. Any reference to a specific provision of the Exchange Act includes any
successor provision and the regulations and rules promulgated under such provision. 
 (u)
        “Excluded Items” means any gains or losses from the sale of assets outside the ordinary course of business; any gains or losses from discontinued operations; any extraordinary gains or
losses; the effects of accounting changes; any unusual, nonrecurring, transition, one-time or similar items or charges; the diluted impact of goodwill on acquisitions; and any other items specified by the Administrator; provided that, for Awards
intended to qualify as performance-based compensation under Code Section 162(m), the Administrator shall specify the Excluded Items in writing at the time the Award is made unless, after application of the Excluded Items, the amount payable
under the Award is reduced. 
 (v)         “Fair Market Value” means, per
Share on a particular date: (i) the closing price on such date on the New York Stock Exchange or, if no sales of Stock occur on the date in question, on the last preceding date on which there was a sale on such market; (ii) if the Shares
are not listed on the New York Stock Exchange, but are traded on another national securities exchange or in an over-the-counter market, the last sales price (or, if there is no last sales price reported, the average of the last bid and asked prices)
for the Shares on the particular date, or on the last preceding date on which there was a sale of Shares on that exchange or market; or (iii) if the Shares are neither listed on a national securities exchange nor traded in an over-the-counter
market, the price determined by the Administrator. The Administrator also shall establish the Fair Market Value of any other property. If an actual sale of a Share occurs on the market, then the Company may consider the sale price to be the Fair
Market Value of such Share. 

  
 4 

 (w)         “Incentive Award” means the
right to receive a cash payment to the extent Performance Goals are achieved, and shall include “Annual Incentive Awards” as described in Section 10 and “Long-Term Incentive Awards” as described in Section 11.

 (x)         “Incentive Stock Option” or “ISO” mean an Option that
meets the requirements of Code Section 422. 
 (y)         “Option” means
the right to purchase Shares at a stated price for a specified period of time. 
 (z)
        “Participant” means an individual selected by the Administrator to receive an Award. 
 (aa)       “Performance Awards” means a Performance Share and Performance Unit, and any Award of Restricted Stock, Restricted Stock Units or Deferred Stock Rights
the payment or vesting of which is contingent on the attainment of one or more Performance Goals. 
 (bb)
      “Performance Goals” means the following categories (in all cases after taking into account any Excluded Items, as applicable), including in each case any measure based on such category: 

 

	 	(i)	Basic earnings per common share for the Company on a consolidated basis. 

  

	 	(ii)	Diluted earnings per common share for the Company on a consolidated basis. 

 

	 	(iii)	Total shareholder return. 

  

	 	(iv)	Fair Market Value of Shares. 

  

	 	(v)	Net sales. 

  

	 	(vi)	Cost of sales. 

  

	 	(vii)	Gross profit. 

  

	 	(viii)	Selling, general and administrative expenses. 

  

	 	(ix)	Operating income. 

  

	 	(x)	Segment income. 

  

	 	(xi)	Earnings before interest and the provision for income taxes (EBIT). 

  

	 	(xii)	Earnings before interest, the provision for income taxes, depreciation, and amortization (EBITDA). 

 

	 	(xiii)	Net income. 

  

	 	(xiv)	Accounts receivable. 

  
 5 

	 	(xv)	Inventories. 

  

	 	(xvi)	Trade working capital. 

  

	 	(xvii)	Return on equity. 

  

	 	(xviii)	Return on assets. 

  

	 	(xix)	Return on invested capital. 

  

	 	(xx)	Return on sales. 

  

	 	(xxi)	Economic value added, or other measure of profitability that considers the cost of capital employed. 

 

	 	(xxii)	Free cash flow. 

  

	 	(xxiii)	Net cash provided by operating activities. 

  

	 	(xxiv)	Net increase (decrease) in cash and cash equivalents. 

  

	 	(xxv)	Customer satisfaction, which may include customer backlog and/or relationships. 

 

	 	(xxvi)	Market share. 

  

	 	(xxvii)	Quality. 

  

	 	(xxviii)	Safety. 

  

	 	(xxix)	Realization or creation of innovation projects or products. 

  

	 	(xxx)	Employee engagement. 

  

	 	(xxxi)	Employee and/or supplier diversity improvement. 

  

	 	(xxxii)	Sustainability measures, such as reduction in greenhouse gases. 

  

	 	(xxxiii)	Completion of integration of acquired businesses and/or strategic activities. 

 

	 	(xxxiv)	Development, completion and implementation of succession planning. 

 The Performance Goals described in items (v) through (xxxiv) may be measured (A) for the Company on a consolidated basis, (B) for any one or more Affiliates or divisions of the Company
and/or (C) for any other business unit or units of the Company or an Affiliate as defined by the Administrator at the time of selection. 

In addition, the Administrator may designate other categories, including categories involving individual performance and subjective targets, not listed
above (A) with respect to Awards that are not intended to qualify as performance-based compensation within the meaning of Code Section 162(m) or (B) to the extent that the application of such categories results in a reduction of the
maximum amount otherwise payable under the Award. 

  
 6 

 Where applicable, the Performance Goals may be expressed, without limitation, in terms of attaining a
specified level of the particular criterion or the attainment of an increase or decrease (expressed as absolute numbers, averages and/or percentages) in the particular criterion or achievement in relation to a peer group or other index. The
Performance Goals may include a threshold level of performance below which no payment will be made (or no vesting will occur), levels of performance at which specified payments will be paid (or specified vesting will occur), and a maximum level of
performance above which no additional payment will be made (or at which full vesting will occur). 
 (cc)
      “Performance Shares” means the right to receive Shares (including Restricted Stock) to the extent Performance Goals are achieved. 
 (dd)       “Performance Unit” means the right to receive a payment valued in relation to a unit that has a designated dollar value or the value of which is equal to
the Fair Market Value of one or more Shares, to the extent Performance Goals are achieved. 
 (ee)
      “Person” means any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act). 
 (ff)        “Plan” means this Johnson Controls, Inc. 2012 Omnibus Incentive Plan, as may be amended from time to time. 

(gg)       “Restriction Period” means the length of time established relative to an Award during
which the Participant cannot sell, assign, transfer, pledge or otherwise encumber the Stock or Stock Units subject to such Award and at the end of which the Participant obtains an unrestricted right to such Stock or Stock Units. 

(hh)       “Restricted Stock” means a Share that is subject to a risk of forfeiture or a
Restriction Period, or both a risk of forfeiture and a Restriction Period. 
 (ii)
        “Restricted Stock Unit” means the right to receive a payment equal to the Fair Market Value of one Share that is subject to a risk of forfeiture or restrictions on transfer, or both a risk of
forfeiture and restrictions on transfer. 
 (jj)         “Retirement” means,
except as otherwise determined by the Administrator and set forth in an Award agreement, termination of employment from the Company and its Affiliates (for other than Cause) on a date the Participant is then eligible to receive immediate early or
normal retirement benefits under the provisions of any of the Company’s or its Affiliate’s defined benefit pension plans, or if the Participant is not covered under any such plan, on or after attainment of age fifty-five (55) and
completion of ten (10) years of continuous service with the Company and its Affiliates or on or after attainment of age sixty-five (65) and completion of five (5) years of continuous service with the Company and its Affiliates.

 (kk)       “Rule 16b-3” means Rule 16b-3 promulgated by the Commission under the
Exchange Act, or any successor rule or regulation thereto. 
 (ll)
        “Section 16 Participants” means Participants who are subject to the provisions of Section 16 of the Exchange Act. 

  
 7 

 (mm)     “Share” means a share of Stock. 

(nn)       “Stock” means the Common Stock of the Company. 

(oo)       “Stock Appreciation Right” or “SAR” means the right to receive a payment
equal to the appreciation of the Fair Market Value of a Share during a specified period of time. 
 (pp)
      “Stock Unit” means a right to receive a payment equal to the Fair Market Value of one Share. 
 (qq)       “Subsidiary” means any corporation, limited liability company or other limited liability entity in an unbroken chain of entities beginning with the
Company if each of the entities (other than the last entity in the chain) owns the stock or equity interest possessing more than fifty percent (50%) of the total combined voting power of all classes of stock or other equity interests in one of
the other entities in the chain. 
 (rr)        “Unrestricted Shares” means Shares
issued under the Plan that are not subject to either a risk of forfeiture or a Restriction Period. 
 3.
          Administration. 
 (a)
        Administration. The Administrator shall administer this Plan. In addition to the authority specifically granted to the Administrator in this Plan, the Administrator has full discretionary
authority to administer this Plan and all Awards, including but not limited to the authority to: (i) interpret the provisions of this Plan and any Award agreement; (ii) prescribe, amend and rescind rules and regulations relating to this
Plan; (iii) correct any defect, supply any omission, or reconcile any inconsistency in this Plan, any Award or agreement covering an Award in the manner and to the extent it deems desirable to carry this Plan or such Award into effect; and
(iv) make all other determinations necessary or advisable for the administration of this Plan. All Administrator determinations shall be made in the sole discretion of the Administrator and are final and binding on all interested parties.

 Notwithstanding the above statement or any other provision of the Plan, the Committee shall have no discretion to increase
the amount, once established, of compensation payable under an Award that is intended to be performance-based compensation under Code Section 162(m), although the Committee may decrease the amount of compensation a Participant may earn under
such an Award. 
 (b) Delegation to Other Committees or Officers. To the extent applicable law permits, the Board may
delegate to another committee of the Board or to one or more officers of the Company, or the Committee may delegate to one or more officers of the Company, any or all of their respective authority and responsibility as an Administrator of the Plan;
provided that no such delegation is permitted with respect to Stock-based Awards made to Section 16 Participants or Awards made to Participants subject to Code Section 162(m) at the time any such delegated authority or responsibility is
exercised unless the delegation is to another committee of the Board consisting entirely of directors who are “non-employee directors” within the meaning of Rule 16b-3 and “outside directors” within the meaning of Code
Section 162(m)(4)(C). If the Board or the Committee has made such a delegation, then all references to the Administrator in this Plan include such other committee or one or more officers to the extent of such delegation. 

  
 8 

 (c)          Indemnification. The
Company will indemnify and hold harmless each member of the Board and the Committee, and each officer or member of any other committee to whom a delegation under Section 3(b) has been made, as to any acts or omissions with respect to this
Plan or any Award to the maximum extent that the law and the Company’s articles of incorporation and by-laws permit. 

4.           Eligibility. The Administrator (to the extent of its authority) may
designate any of the following as a Participant from time to time: any officer or other employee of the Company or its Affiliates or any individual that the Company or an Affiliate has engaged to become an officer or employee. The
Administrator’s designation of a Participant in any year will not require the Administrator to designate such person to receive an Award in any other year. No individual shall have any right to be granted an Award, even if an Award was granted
to such individual at any prior time, or if a similarly-situated individual is or was granted an Award under similar circumstances. 
 5.           Types of Awards. Subject to the terms of this Plan, the Administrator may grant any type of Award to any Participant it selects, but
only employees of the Company or a Subsidiary may receive grants of Incentive Stock Options. Awards may be granted alone or in addition to, in tandem with, or (subject to the prohibition on repricing set forth in Section 16(e)) in substitution
for any other Award (or any other award granted under another plan of the Company or any Affiliate). 
 6.
          Shares Reserved under this Plan. 
 (a)
        Plan Reserve. Subject to adjustment as provided in Section 18, an aggregate of thirty-six million, eight hundred thousand (36,800,000) Shares are reserved
for issuance under this Plan. The Shares reserved for issuance may be either authorized and unissued Shares or Shares reacquired at any time and now or hereafter held as treasury stock. The aggregate number of Shares reserved under this
Section 6(a) shall be depleted by one Share for each Share subject to an Option or SAR (that will be settled in Shares), and the aggregate number of Shares reserved under this Section 6(a) shall be depleted by 2.65 Shares for each Share
subject to an Award other than an Option or SAR. For purposes of determining the aggregate number of Shares reserved for issuance under this Plan, any fractional Share shall be rounded to the next highest full Share. 

(b)         Incentive Stock Option Award Limits. Subject to adjustment as provided in
Section 18, the Company may issue an aggregate of three million (3,000,000) Shares upon the exercise of Incentive Stock Options. 
 (c)         Replenishment of Shares Under this Plan. If (i) an Award lapses, expires, terminates or is cancelled without the issuance of Shares under
the Award (whether due currently or on a deferred basis), (ii) it is determined during or at the conclusion of the term of an Award that all or some portion of the Shares with respect to which the Award was granted will not be issuable on the
basis that the conditions for such issuance will not be satisfied, (iii) Shares are forfeited under an Award or (iv) Shares are issued under any Award and the Company subsequently reacquires them pursuant to rights reserved upon the
issuance of the Shares, then such Shares shall be recredited to the Plan’s reserve (in the same number as they depleted the reserve) and may again be used for new Awards under this Plan, but Shares recredited to the Plan’s reserve pursuant
to clause (iv) may not be issued pursuant to Incentive Stock Options. Notwithstanding the foregoing, in no event shall the following Shares be recredited to the Plan’s reserve: Shares tendered in payment of the exercise price of an Option;
Shares withheld to satisfy federal, state or local tax withholding obligations; and Shares purchased by the Company using proceeds from Option exercises. 

  
 9 

 (d)         Addition of Shares from Prior
Plans. After the termination date of the Prior Plans, if any Shares subject to awards granted under the Prior Plans would again become available for new grants under the terms of such plans if such plans were still in effect (taking into account
such plan’s provisions concerning termination or expiration, if any), then those Shares will be available for the purpose of granting Awards under this Plan, thereby increasing the number of Shares available for issuance under this Plan as
determined under Section 6(a). Any such Shares will not be available for future awards under the terms of the Prior Plans. 

(e)         Participant Limitations. Subject to adjustment as provided in Section 18,
no Participant may be granted Awards that could result in such Participant: 
 (i)
      receiving Options for, and/or Stock Appreciation Rights with respect to, more than two million (2,000,000) Shares during any fiscal year of the Company; 

(ii)       receiving Awards of Restricted Stock (including any dividends paid thereon)
and/or Restricted Stock Units (including any associated Dividend Equivalent Units) and/or Deferred Stock Rights (including any associated Dividend Equivalent Units) relating to more than five hundred thousand (500,000) Shares during any fiscal
year of the Company; 
 (iii)       receiving Awards of Performance Shares, and/or
Awards of Performance Units the value of which is based on the Fair Market Value of Shares, for more than one million (1,000,000) Shares during any fiscal year of the Company; 

(iv)       receiving Awards of Performance Units the value of which is not based on the Fair
Market Value of Shares that would pay more than six million dollars ($6,000,000) during any fiscal year of the Company; 
 (v)       receiving other Stock-based Awards pursuant to Section 13 relating to more than five hundred thousand (500,000) Shares during any fiscal year of the
Company; 
 (vi)       receiving an Annual Incentive Award in any fiscal year of
the Company that would pay more than six million dollars ($6,000,000); or 
 (vii)
      receiving a Long-Term Incentive Award in any fiscal year of the Company that would pay more than six million dollars ($6,000,000). 
 In all cases, determinations under this Section 6(e) should be made in a manner that is consistent with the exemption for performance-based compensation that Code Section 162(m) provides.

 7.           Options. Subject to the terms of this Plan, the
Administrator will determine all terms and conditions of each Option, including but not limited to: 
 (a)
        Whether the Option is an Incentive Stock Option or a “nonqualified stock option” which does not meet the requirements of Code Section 422; 

  
 10 

 (b)         The number of Shares subject to the
Option; 
 (c)         The date of grant, which may not be prior to the date of the
Administrator’s approval of the grant; 
 (d)         The exercise price, which may
not be less than the Fair Market Value of the Shares subject to the Option as determined on the date of grant; provided that an Incentive Stock Option granted to a 10% Shareholder must have an exercise price at least equal to 110% of the Fair Market
Value of the Shares subject to the Option as determined on the date of grant; 
 (e)
        The terms and conditions of exercise, including the manner and form of payment of the exercise price; provided that if the aggregate Fair Market Value of the Shares subject to all ISOs granted to a
Participant (as determined on the date of grant of each such Option) that become exercisable during a calendar year exceeds the dollar limitation set forth in Code Section 422(d), then such ISOs shall be treated as nonqualified stock options to
the extent such limitation is exceeded; and 
 (f)         The term; provided that each
Option must terminate no later than ten (10) years after the date of grant and each Incentive Stock Option granted to a 10% Shareholder must terminate no later than five (5) years after the date of grant. 

In all other respects, the terms of any Incentive Stock Option should comply with the provisions of Code Section 422 except to the
extent the Administrator determines otherwise. If an Option that is intended to be an Incentive Stock Option fails to meet the requirements thereof, the Option shall automatically be treated as a nonqualified stock option to the extent of such
failure. 
 8.           Stock Appreciation Rights. Subject to the
terms of this Plan, the Administrator will determine all terms and conditions of each SAR, including but not limited to: 
 (a)
        Whether the SAR is granted independently of an Option or relates to an Option; 

(b)         The number of Shares to which the SAR relates; 

(c)         The date of grant, which may not be prior to the date of the Administrator’s
approval of the grant; 
 (d)         The grant price, provided that the grant price
shall not be less than the Fair Market Value of the Shares subject to the SAR as determined on the date of grant; 
 (e)
        The terms and conditions of exercise or maturity; 
 (f)
        The term, provided that each SAR must terminate no later than ten (10) years after the date of grant; and 
 (g)         Whether the SAR will be settled in cash, Shares or a combination thereof. 
 If an SAR is granted in relation to an Option, then, unless otherwise determined by the Administrator, the SAR shall be exercisable or shall mature at the same time or times, on the same conditions and to
the extent and in the proportion, that the related Option is exercisable and may be exercised or mature for all or part of the Shares subject to the related 

  
 11 

 
Option. Upon exercise of any number of SARs, the number of Shares subject to the related Option shall be reduced accordingly and such Option may not be exercised with respect to that number of
Shares. The exercise of any number of Options that relate to an SAR shall likewise result in an equivalent reduction in the number of Shares covered by the related SAR. 
 9.           Performance and Stock Awards. Subject to the terms of this Plan, the Administrator will determine all terms and conditions of each
award of Restricted Stock, Restricted Stock Units, Deferred Stock Rights, Performance Shares or Performance Units, including but not limited to: 
 (a)         The number of Shares and/or units to which such Award relates; 
 (b)         Whether, as a condition for the Participant to realize all or a portion of the benefit provided under the Award, one or more Performance Goals must be
achieved during such period as the Administrator specifies; 
 (c)         The
Restriction Period with respect to Restricted Stock or Restricted Stock Units and the period of deferral for Deferred Stock Rights; 
 (d)         The performance period for Performance Awards; 
 (e)         With respect to Performance Units, whether to measure the value of each unit in relation to a designated dollar value or the Fair Market Value of one or
more Shares; and 
 (f)         With respect to Restricted Stock Units and Performance
Units, whether to settle such Awards in cash, in Shares, or a combination thereof. 
 Except as otherwise provided in the Plan,
at such time as all restrictions applicable to an Award of Restricted Stock, Deferred Stock Rights or Restricted Stock Units are met and the Restriction Period expires, ownership of the Stock subject to such restrictions shall be transferred to the
Participant free of all restrictions except those that may be imposed by applicable law; provided that if Restricted Stock Units are paid in cash, then the payment shall be made to the Participant after all applicable restrictions lapse and the
Restriction Period expires. 
 10.          Annual Incentive Awards. Subject
to the terms of this Plan, the Administrator will determine all terms and conditions of an Annual Incentive Award, including but not limited to the Performance Goals, performance period, the potential amount payable, and the timing of payment,
subject to the following: (a) the Administrator must require that payment of all or any portion of the amount subject to the Annual Incentive Award is contingent on the achievement of one or more Performance Goals during the period the
Administrator specifies, although the Administrator may specify that all or a portion of the Performance Goals subject to an Award are deemed achieved upon a Participant’s death, Disability or (for Awards not intended to qualify as
performance-based compensation within the meaning of Code Section 162(m)) Retirement, or such other circumstances as the Administrator may specify; and (b) the performance period must relate to a period of one fiscal year of the Company
except that, if the Award is made in the year this Plan becomes effective, at the time of commencement of employment with the Company or on the occasion of a promotion, then the Award may relate to a period shorter than one fiscal year. 

  
 12 

 11.          Long-Term Incentive Awards.
Subject to the terms of this Plan, the Administrator will determine all terms and conditions of a Long-Term Incentive Award, including but not limited to the Performance Goals, performance period, the potential amount payable, and the timing of
payment, subject to the following: (a) the Administrator must require that payment of all or any portion of the amount subject to the Long-Term Incentive Award is contingent on the achievement of one or more Performance Goals during the period
the Administrator specifies, although the Administrator may specify that all or a portion of the Performance Goals subject to an Award are deemed achieved upon a Participant’s death, Disability or (for Awards not intended to qualify as
performance-based compensation within the meaning of Code Section 162(m)) Retirement, or such other circumstances as the Administrator may specify; and (b) the performance period must relate to a period of more than one fiscal year of the
Company. 
 12.          Dividend Equivalent Units. Subject to the terms of
this Plan, the Administrator will determine all terms and conditions of each award of Dividend Equivalent Units, including but not limited to whether: (a) such Award will be granted in tandem with another Award; (b) payment of the Award be
made currently or credited to an account for the Participant that provides for the deferral of such amounts until a stated time; provided that Dividend Equivalent Units that relate to Performance Awards that are contingent on the achievement of a
Performance Goal at the time the cash dividend or other distribution is paid with respect to a Share shall also be contingent on the achievement of such Performance Goal and shall not be paid until such Performance Goal is achieved; and (c) the
Award will be settled in cash or Shares; provided that Dividend Equivalent Units may be granted only in connection with a “full-value Award.” For this purpose, a “full-value Award” includes Restricted Stock, Restricted Stock
Units, Performance Shares, Performance Units (valued in relation to a Share), Deferred Stock Rights and any other similar Award under which the value of the Award is measured as the full value of a Share, rather than the increase in the value of a
Share. 
 13.          Other Stock-Based Awards. Subject to the terms of
this Plan, the Administrator may grant to Participants other types of Awards, which shall be denominated or payable in, valued in whole or in part by reference to, or otherwise based on, Shares, either alone or in addition to or in conjunction with
other Awards, and payable in Stock or cash. Without limitation, such Award may include the issuance of Unrestricted Shares (which may be awarded in lieu of cash compensation to which a Participant is otherwise entitled, in exchange for cancellation
of a compensation right, as a bonus, upon the attainment of Performance Goals or otherwise) or rights to acquire Stock from the Company. The Administrator shall determine all terms and conditions of the Award, including but not limited to, the time
or times at which such Awards shall be made, and the number of Shares to be granted pursuant to such Awards or to which such Award shall relate; provided that any Award that provides for purchase rights shall be priced at 100% of Fair Market Value
on the date of grant of the Award; and provided further that the date of grant cannot be prior to the date the Administrator takes action to approve the Award. 
 14.          Effect of Termination on Awards. The Administrator shall have the discretion to determine, at the time an Award is made to a
Participant or any time thereafter, the effect of the Participant’s termination of employment or service with the Company and its Affiliates on the Award. 

  
 13 

 15.          Transferability. 

 (a)           Restrictions on Transfer. No Award (other than
Unrestricted Shares), and no right under any such Award, shall be assignable, alienable, saleable, or transferable by a Participant otherwise than by will or by the laws of descent and distribution, unless and to the extent the Administrator allows
a Participant to: (i) designate in writing a beneficiary to exercise the Award after the Participant’s death; or (ii) transfer an Award. 
 (b)           Restrictions on Exercisability. Each Award, and each right under any Award, shall be exercisable during the lifetime of the
Participant only by such individual or, if permissible under applicable law, by such individual’s guardian or legal representative. 
 16.          Termination and Amendment of Plan; Amendment, Modification or Cancellation of Awards. 

(a)           Term of Plan. Unless the Board or Committee earlier terminates
this Plan pursuant to Section 16(b), this Plan will terminate on the date all Shares reserved for issuance have been issued. If the term of this Plan extends beyond ten (10) years from the Effective Date, no Incentive Stock Options may be
granted after such time unless the shareholders of the Company have approved an extension of this Plan for such purpose. 
 (b)
          Termination and Amendment. The Board or the Committee may amend, alter, suspend, discontinue or terminate this Plan at any time, subject to the following limitations: 

(i)         the Board must approve any amendment of this Plan to the extent the
Company determines such approval is required by: (A) prior action of the Board, (B) applicable corporate law, or (C) any other applicable law; 
 (ii)        shareholders must approve any amendment of this Plan to the extent the Company determines such approval is required by: (A) Section 16 of the
Exchange Act, (B) the Code, (C) the listing requirements of any principal securities exchange or market on which the Shares are then traded, or (D) any other applicable law; and 

(iii)       shareholders must approve any of the following Plan amendments: (A) an
amendment to materially increase any number of Shares specified in Section 6(a) or 6(b) or the limits set forth in Section 6(e) (except as permitted by Section 18), (B) an amendment to materially expand the group of individuals
that may become Participants, or (C) an amendment that would diminish the protections afforded by Section 16(e). 

(c)           Amendment, Modification, Cancellation and Disgorgement of Awards.

 (i)         Subject to the requirements of the Plan, including the
limitations of Section 16(e), the Administrator may modify, amend or cancel any Award or waive any restrictions or conditions applicable to any Award or the exercise of the Award, provided that any modification or amendment that materially
diminishes the rights of the Participant, or the cancellation of the Award, shall be effective only if agreed to by the Participant or any other person(s) as may then have an interest in the Award, but the Administrator need not obtain Participant
(or other interested party) consent for the modification, amendment or cancellation of an Award pursuant to the provisions of Section 18 or as follows: (A) to the extent the Administrator deems such action necessary to comply with any
applicable law or the listing requirements of any principal securities exchange or market on which the Shares are then traded; (B) to the extent the Administrator deems necessary to preserve favorable accounting or tax treatment of any

  
 14 

 
Award for the Company; or (C) to the extent the Administrator determines that such action does not materially and adversely affect the value of an Award or that such action is in the best
interest of the affected Participant or any other person(s) as may then have an interest in the Award. Notwithstanding the foregoing, unless determined otherwise by the Administrator, any such amendment shall be made in a manner that will enable an
Award intended to be exempt from Code Section 409A to continue to be so exempt, or to enable an Award intended to comply with Code Section 409A to continue to so comply. 

(ii)         Any Awards granted pursuant to this Plan, and any Stock issued or
cash paid pursuant to an Award, shall be subject to (A) any recoupment, clawback, equity holding, stock ownership or similar policies adopted by the Company from time to time and (B) any recoupment, clawback, equity holding, stock
ownership or similar requirements made applicable by law, regulation or listing standards to the Company from time to time. 
 (iii)         Unless the Award agreement specifies otherwise, the Administrator may cancel any Award at any time if the Participant is not in compliance with all
applicable provisions of the Award agreement and the Plan. 
 (d)
          Survival of Authority and Awards. Notwithstanding the foregoing, the authority of the Board and the Administrator under this Section 16 and to otherwise administer the Plan will
extend beyond the date of this Plan’s termination. In addition, termination of this Plan will not affect the rights of Participants with respect to Awards previously granted to them, and all unexpired Awards will continue in force and effect
after termination of this Plan except as they may lapse or be terminated by their own terms and conditions. 
 (e)
          Repricing and Backdating Prohibited. Notwithstanding anything in this Plan to the contrary, and except for the adjustments provided in Section 18, neither the Administrator nor
any other person may (i) amend the terms of outstanding Options or SARs to reduce the exercise price of such outstanding Options or SARs; (ii) cancel outstanding Options or SARs in exchange for Options or SARs with an exercise price that
is less than the exercise price of the original Options or SARs; or (iii) cancel outstanding Options or SARs with an exercise price above the current Share price in exchange for cash or other securities. In addition, the Administrator may not
make a grant of an Option or SAR with a grant date that is effective prior to the date the Administrator takes action to approve such Award. 
 (f)           Foreign Participation. To assure the viability of Awards granted to Participants employed or residing in foreign countries, the
Administrator may provide for such special terms as it may consider necessary or appropriate to accommodate differences in local law, tax policy or custom. Moreover, the Administrator may approve such supplements to, or amendments, restatements or
alternative versions of, this Plan as it determines is necessary or appropriate for such purposes. Any such amendment, restatement or alternative versions that the Administrator approves for purposes of using this Plan in a foreign country will not
affect the terms of this Plan for any other country. In addition, all such supplements, amendments, restatements or alternative versions must comply with the provisions of Section 16(b). 
 In addition, if an Award is held by a Participant who is employed or residing in a foreign country and the amount payable or Shares issuable under such Award would be taxable to the Participant under Code
Section 457A in the year such Award is no longer subject to a substantial risk of forfeiture, then the amount payable or Shares issuable under such Award 

  
 15 

 
shall be paid or issued to the Participant as soon as practicable after such substantial risk of forfeiture lapses (or, for Awards that are not considered nonqualified deferred compensation
subject to Code Section 409A, no later than the end of the short-term deferral period permitted by Code Section 457A) notwithstanding anything in this Plan or the Award agreement to contrary. 

(g)           Code Section 409A. The provisions of Code Section 409A
are incorporated herein by reference to the extent necessary for any Award that is subject to Code Section 409A to comply therewith. 
 17.          Taxes. 
 (a)
          Withholding. In the event the Company or an Affiliate of the Company is required to withhold any Federal, state or local taxes or other amounts in respect of any income recognized by
a Participant as a result of the grant, vesting, payment or settlement of an Award or disposition of any Shares acquired under an Award, the Company may deduct (or require an Affiliate to deduct) from any payments of any kind otherwise due the
Participant cash, or with the consent of the Committee, Shares otherwise deliverable or vesting under an Award, to satisfy such tax obligations. Alternatively, the Company may require such Participant to pay to the Company, in cash, promptly on
demand, or make other arrangements satisfactory to the Company regarding the payment to the Company of the aggregate amount of any such taxes and other amounts. If Shares are deliverable upon exercise or payment of an Award, the Committee may permit
a Participant to satisfy all or a portion of the Federal, state and local withholding tax obligations arising in connection with such Award by electing to (a) have the Company withhold Shares otherwise issuable under the Award, (b) tender
back Shares received in connection with such Award or (c) deliver other previously owned Shares; provided that the amount to be withheld may not exceed the total minimum federal, state and local tax withholding obligations associated with the
transaction to the extent needed for the Company to avoid an accounting charge. If an election is provided, the election must be made on or before the date as of which the amount of tax to be withheld is determined and otherwise as the Committee
requires. In any case, the Company may defer making payment or delivery under any Award if any such tax may be pending unless and until indemnified to its satisfaction. 
 (b)           No Guarantee of Tax Treatment. Notwithstanding any provisions of the Plan, the Company does not guarantee to any Participant or any
other Person with an interest in an Award that (i) any Award intended to be exempt from Code Section 409A shall be so exempt, (ii) any Award intended to comply with Code Section 409A or Code Section 422 shall so comply,
(iii) any Award shall otherwise receive a specific tax treatment under any other applicable tax law, nor in any such case will the Company or any Affiliate indemnify, defend or hold harmless any individual with respect to the tax consequences
of any Award. 
 (c)           Participant Responsibilities. If a
Participant shall dispose of Stock acquired through exercise of an ISO within either (i) two (2) years after the date the Option is granted or (ii) one (1) year after the date the Option is exercised (i.e., in a disqualifying
disposition), such Participant shall notify the Company within seven (7) days of the date of such disqualifying disposition. In addition, if a Participant elects, under Code Section 83, to be taxed at the time an Award of Restricted Stock
(or other property subject to such Code section) is made, rather than at the time the Award vests, such Participant shall notify the Company within seven (7) days of the date the Participant makes such an election. 

  
 16 

 18.          Adjustment Provisions; Change
of Control. 
 (a)           Adjustment of Shares. If: (i) the
Company shall at any time be involved in a merger or other transaction in which the Shares are changed or exchanged; (ii) the Company shall subdivide or combine the Shares or the Company shall declare a dividend payable in Shares, other
securities or other property; (iii) the Company shall effect a cash dividend the amount of which, on a per Share basis, exceeds ten percent (10%) of the Fair Market Value of a Share at the time the dividend is declared, or the Company
shall effect any other dividend or other distribution on the Shares in the form of cash, or a repurchase of Shares, that the Board determines by resolution is special or extraordinary in nature or that is in connection with a transaction that the
Company characterizes publicly as a recapitalization or reorganization involving the Shares; or (iv) any other event shall occur, which, in the case of this clause (iv), in the judgment of the Board or Committee necessitates an adjustment to
prevent dilution or enlargement of the benefits or potential benefits intended to be made available under this Plan, then the Administrator shall, in such manner as it may deem equitable to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under this Plan, adjust as applicable: (A) the number and type of Shares subject to this Plan (including the number and type of Shares described in Section 6) and which may after the event
be made the subject of Awards; (B) the number and type of Shares subject to outstanding Awards; (C) the grant, purchase, or exercise price with respect to any Award; and (D) to the extent such discretion does not cause an Award that
is intended to qualify as performance-based compensation under Code Section 162(m) to lose its status as such, the Performance Goals of an Award. In any such case, the Administrator may also (or in lieu of the foregoing) make provision for a
cash payment to the holder of an outstanding Award in exchange for the cancellation of all or a portion of the Award (without the consent of the holder of an Award) in an amount determined by the Administrator effective at such time as the
Administrator specifies (which may be the time such transaction or event is effective). However, in each case, with respect to Awards of Incentive Stock Options, no such adjustment may be authorized to the extent that such authority would cause this
Plan to violate Code Section 422(b). Further, the number of Shares subject to any Award payable or denominated in Shares must always be a whole number. In any event, previously granted Options or SARs are subject only to such adjustments as are
necessary to maintain the relative proportionate interest the Options and SARs represented immediately prior to any such event and to preserve, without exceeding, the value of such Options or SARs. 

Without limitation, in the event of any reorganization, merger, consolidation, combination or other similar corporate transaction or
event, whether or not constituting a Change of Control (other than any such transaction in which the Company is the continuing corporation and in which the outstanding Stock is not being converted into or exchanged for different securities, cash or
other property, or any combination thereof), the Administrator may substitute, on an equitable basis as the Administrator determines, for each Share then subject to an Award and the Shares subject to this Plan (if the Plan will continue in effect),
the number and kind of shares of stock, other securities, cash or other property to which holders of Stock are or will be entitled in respect of each Share pursuant to the transaction. 

Notwithstanding the foregoing, in the case of a stock dividend (other than a stock dividend declared in lieu of an ordinary cash
dividend) or subdivision or combination of the Shares (including a reverse stock split), if no action is taken by the Administrator, adjustments contemplated by this subsection that are proportionate shall nevertheless automatically be made as of
the date of such stock dividend or subdivision or combination of the Shares. 

  
 17 

 (b)           Issuance or
Assumption. Notwithstanding any other provision of this Plan, and without affecting the number of Shares otherwise reserved or available under this Plan, in connection with any merger, consolidation, acquisition of property or stock, or
reorganization, the Administrator may authorize the issuance or assumption of awards under this Plan upon such terms and conditions as it may deem appropriate, subject to the listing requirements of any principal securities exchange or market on
which the Shares are then traded. 
 (c)           Change of Control.
If the Participant has in effect an employment, retention, change of control, severance or similar agreement with the Company or any Affiliate that discusses the effect of a Change of Control on the Participant’s Awards, then such agreement
shall control. In all other cases, unless provided otherwise in an Award agreement or by the Administrator prior to the date of the Change of Control, in the event of a Change of Control: 

(i)         If the purchaser, successor or surviving corporation (or parent
thereof) (the “Survivor”) so agrees, some or all outstanding Awards shall be assumed, or replaced with the same type of award with similar terms and conditions, by the Survivor in the Change of Control transaction. If applicable, each
Award which is assumed by the Survivor shall be appropriately adjusted, immediately after such Change of Control, to apply to the number and class of securities which would have been issuable to the Participant upon the consummation of such Change
of Control had the Award been exercised, vested or earned immediately prior to such Change of Control, and other appropriate adjustments in the terms and conditions of the Award shall be made. 

(ii)         To the extent the Survivor in the Change of Control transaction does
not agree to assume the Awards or issue replacement awards as provided in clause (i), then immediately prior to the date of the Change of Control: 
 (A)         Each Option or SAR that is then held by a Participant who is employed by or in the service of the Company or an Affiliate shall become immediately and
fully vested, and, unless otherwise determined by the Board or Committee, all Options and SARs shall be cancelled on the date of the Change of Control in exchange for a cash payment equal to the excess of the Change of Control price of the Shares
covered by the Option or SAR that is so cancelled over the purchase or grant price of such Shares under the Award. 
 (B)         Restricted Stock, Restricted Stock Units and Deferred Stock Rights (that are not Performance Awards) that are not then vested shall vest. 

(C)         All Performance Awards and Annual and Long-Term Incentive Awards that
are earned but not yet paid shall be paid upon the Change of Control, and all Performance Awards and Annual and Long-Term Incentive Awards for which the performance period has not expired shall be cancelled in exchange for a cash payment to be made
within thirty (30) days after the Change of Control equal to the product of (1) the target value payable to the Participant under his Award and (2) a fraction, the numerator of which is the number of days after the first day of the
performance period on which the Change of Control occurs and the denominator of which is the number of days in the performance period. 
 (D)         All Dividend Equivalent Units that are not vested shall vest and be paid in cash, and all other Awards that are not vested shall vest and if an amount
is payable under such vested Award, such amount shall be paid in cash based on the value of the Award. 

  
 18 

 (iii)         In the event that
(1) the Survivor terminates the Participant’s employment or service without cause (as defined in the agreement relating to the Award or, if not defined therein, as defined by the Administrator) or (2) if the Participant has in effect
an employment, retention, change of control, severance or similar agreement with the Company or any Affiliate that contemplates the termination of his or her employment or service for good reason, and the Participant terminates his or her employment
or service for good reason (as defined in such agreement), in the case of either (1) or (2) within twenty-four (24) months following a Change of Control, then the following provisions shall apply to any assumed Awards or replacement
awards described in paragraph (i) and any Awards not cancelled in connection with the Change of Control pursuant to paragraph (ii): 
 (A)         Effective upon the date of the Participant’s termination of employment or service, all outstanding Awards or replacement awards automatically shall
vest (assuming for any Award the vesting of which is subject to Performance Goals, that such goals had been met at the target level); and 
 (B)         With respect to Options or Stock Appreciation Rights, at the election of the Participant, such Awards or replacement awards shall be cancelled as of the
date of such termination in exchange for a payment in cash and/or Shares (which may include shares or other securities of the Survivor) equal to the excess of the Fair Market Value of the Shares on the date of such termination covered by the portion
of the Option or Stock Appreciation Right that has not been exercised over the exercise or grant price of such Shares under the Award; and 
 (C)         With respect to Restricted Stock, Restricted Stock Units or Deferred Stock Rights, at the election of the Participant, such Awards or replacement awards
shall be cancelled as of the date of such termination in exchange for a payment in cash and/or Shares (which may include shares or other securities of the Survivor) equal to the Fair Market Value of a Share on the date of such termination; and

 (D)         With respect to Performance Awards and Annual and
Long-Term Incentive Awards that are earned but not yet paid, such Awards or replacement awards shall be paid upon the termination of employment or service, and with respect to Performance Awards and Annual and Long-Term Incentive Awards for which
the performance period has not expired, such Awards shall be cancelled in exchange for a cash payment to be made within thirty (30) days after the date of termination equal to the product of (1) the target value payable to the Participant
under his Award and (2) a fraction, the numerator of which is the number of days after the first day of the performance period on which the termination occurs and the denominator of which is the number of days in the performance period; and

 (E)         With respect to other Awards, such Awards or replacement
awards shall be cancelled as of the date of such termination in exchange for a payment in cash in an amount equal to the value of the Award. 

  
 19 

 Notwithstanding anything to the contrary in the foregoing, the Participant has a deferral
election in effect with respect to any amount payable under this Section 18(c), such amount shall be deferred pursuant to such election and shall not be paid in a lump sum as provided herein; provided that, with respect to amounts payable to a
Participant (or the Participant’s beneficiary or estate) who is entitled to a payment hereunder because the Participant’s employment terminated as a result of death or Disability, or payable to a Participant who has met the requirements
for Retirement (without regard to whether the Participant has terminated employment), no payment shall be made unless the Change of Control also constitutes a change of control within the meaning of Code Section 409A. 

If the value of an Award is based on the Fair Market Value of a Share, Fair Market Value shall be deemed to mean the per share Change of
Control price. The Administrator shall determine the per share Change of Control price paid or deemed paid in the Change of Control transaction. 
 (d)           Application of Limits on Payments. Except as otherwise expressly provided in any agreement between a Participant and the Company or
an Affiliate, if the receipt of any payment by a Participant under the circumstances described above would result in the payment by the Participant of any excise tax provided for in Section 280G and Section 4999 of the Code, then the
amount of such payment shall be reduced to the extent required to prevent the imposition of such excise tax. 
 19.
         Miscellaneous. 
 (a)
          Other Terms and Conditions. The grant of any Award may also be subject to other provisions (whether or not applicable to the Award granted to any other Participant) as the
Administrator determines appropriate, including, without limitation, provisions for: 
 (i)
        the payment of the purchase price of Options by delivery of cash or other Shares or other securities of the Company (including by attestation) having a then Fair Market Value equal to the purchase
price of such Shares, or by delivery (including by fax) to the Company or its designated agent of an executed irrevocable option exercise form together with irrevocable instructions to a broker-dealer to sell or margin a sufficient portion of the
Shares and deliver the sale or margin loan proceeds directly to the Company to pay for the exercise price; 

(ii)        one or more means to enable Participants to defer the delivery of Shares or
recognition of taxable income relating to Awards or cash payments derived from the Awards on such terms and conditions as the Administrator determines, including, by way of example, the form and manner of the deferral election, the treatment of
dividends paid on the Shares during the deferral period or a means for providing a return to a Participant on amounts deferred, and the permitted distribution dates or events (provided that no such deferral means may result in an increase in the
number of Shares issuable under this Plan); 
 (iii)       restrictions on resale
or other disposition of Shares; and 
 (iv)        compliance with federal or
state securities laws and stock exchange requirements. 

  
 20 

 (b)           Employment and
Service. The issuance of an Award shall not confer upon a Participant any right with respect to continued employment or service with the Company or any Affiliate. Unless determined otherwise by the Administrator, for purposes of the Plan and all
Awards, the following rules shall apply: 
 (i)         a Participant who
transfers employment between the Company and its Affiliates, or between Affiliates, will not be considered to have terminated employment; and 
 (ii)         a Participant employed by an Affiliate will be considered to have terminated employment when such entity ceases to be an Affiliate. 

Notwithstanding the foregoing, for purposes of an Award that is subject to Code Section 409A, if a Participant’s termination
of employment or service triggers the payment of compensation under such Award, then the Participant will be deemed to have terminated employment or service upon his or her “separation from service” within the meaning of Code
Section 409A. Notwithstanding any other provision in this Plan or an Award to the contrary, if any Participant is a “specified employee” within the meaning of Code Section 409A as of the date of his or her “separation from
service” within the meaning of Code Section 409A, then, to the extent required by Code Section 409A, any payment made to the Participant on account of such separation from service shall not be made before a date that is six months
after the date of the separation from service. 
 (c)           No
Fractional Shares. No fractional Shares or other securities may be issued or delivered pursuant to this Plan, and the Administrator may determine whether cash, other securities or other property will be paid or transferred in lieu of any
fractional Shares or other securities, or whether such fractional Shares or other securities or any rights to fractional Shares or other securities will be canceled, terminated or otherwise eliminated. 

(d)           Offset. The Company shall have the right to offset, from any
amount payable or stock deliverable hereunder, any amount that the Participant owes to the Company or any Affiliate without the consent of the Participant or any individual with a right to the Participant’s Award. 

(e)           Unfunded Plan. This Plan is unfunded and does not create, and
should not be construed to create, a trust or separate fund with respect to this Plan’s benefits. This Plan does not establish any fiduciary relationship between the Company and any Participant or other person. To the extent any person holds
any rights by virtue of an Award granted under this Plan, such rights are no greater than the rights of the Company’s general unsecured creditors. Income recognized by a Participant pursuant to an Award shall not be included in the
determination of benefits under any employee pension benefit plan (as such term is defined in Section 3(2) of the Employee Retirement Income Security Act of 1974, as amended) or group insurance or other benefit plans applicable to the
Participant which are maintained by the Company or any Affiliate, except as may be provided under the terms of such plans or determined by resolution of the Board. 
 (f)           Requirements of Law and Securities Exchange. The granting of Awards and the issuance of Shares in connection with an Award are
subject to all applicable laws, rules and regulations and to such approvals by any governmental agencies or national securities exchanges as may be required. Notwithstanding any other provision of this Plan or any Award agreement, the Company has no
liability to deliver any Shares under this Plan or make any 

  
 21 

 
payment unless such delivery or payment would comply with all applicable laws and the applicable requirements of any securities exchange or similar entity, and unless and until the Participant
has taken all actions required by the Company in connection therewith. The Company may impose such restrictions on any Shares issued under the Plan as the Company determines necessary or desirable to comply with all applicable laws, rules and
regulations or the requirements of any national securities exchange. 
 (g)
          Restrictive Legends; Representations. All Shares delivered (whether in certificated or book entry form) pursuant to any Award or the exercise thereof shall bear such legends or be
subject to such stop transfer orders as the Administrator may deem advisable under the Plan or under applicable laws, rules or regulations or the requirements of any national securities exchange. The Administrator may require each Participant or
other Person who acquires Shares under the Plan by means of an Award to represent to the Company in writing that such Participant or other Person is acquiring the Shares without a view to the distribution thereof. 

(h)           Governing Law. This Plan, and all Awards hereunder, and all
determinations made and actions taken pursuant to this Plan, shall be governed by the internal laws of the State of Wisconsin (without reference to conflict of law principles thereof) and construed in accordance therewith, to the extent not
otherwise governed by the laws of the United States or as otherwise provided hereinafter. Notwithstanding anything to the contrary herein, if any individual (other than the Company) brings a claim involving the Company or an Affiliate, regardless of
the basis of the claim (including but not limited to claims relating to wrongful discharge, Title VII discrimination, the Participant’s employment or service with the Company or its Affiliates or the termination thereof, benefits under this
Plan or other matters), such claim shall be settled by final binding arbitration in accordance with the rules of the American Arbitration Association (“AAA”) and the following provisions, and judgment upon the award rendered by the
arbitrator may be entered in any court having jurisdiction thereof. 
 (i)
        Initiation of Action. Arbitration must be initiated by serving or mailing a written notice of the complaint to the other party. Normally, such written notice should be provided to the other
party within one year (365 days) after the day the complaining party first knew or should have known of the events giving rise to the complaint. However, this time frame may be extended if the applicable statute of limitation provides for a longer
period of time. If the complaint is not properly submitted within the appropriate time frame, all rights and claims that the complaining party has or may have against the other party shall be waived and void. Any notice sent to the Company shall be
delivered to: 
 Office of General Counsel 

Johnson Controls, Inc. 
 5757 North Green Bay Avenue 
 P.O. Box 591 

Milwaukee, WI 53201-0591 
 The notice must identify and describe the nature of all complaints asserted and the facts upon which such complaints are based. Notice will be deemed given according to the date of any postmark or the
date of time of any personal delivery. 
 (ii)       Compliance with Personnel
Policies. Before proceeding to arbitration on a complaint, the claimant must initiate and participate in any complaint resolution 

  
 22 

 
procedure identified in the personnel policies of the Company or an Affiliate, as applicable. If the claimant has not initiated the complaint resolution procedure before initiating arbitration on
a complaint, the initiation of the arbitration shall be deemed to begin the complaint resolution procedure. No arbitration hearing shall be held on a complaint until any complaint resolution procedure of the Company or an Affiliate, as applicable,
has been completed. 
 (iii)     Rules of Arbitration. All arbitration will be
conducted by a single arbitrator according to the Employment Dispute Arbitration Rules of the AAA. The arbitrator will have authority to award any remedy or relief that a court of competent jurisdiction could order or grant including, without
limitation, specific performance of any obligation created under the award or policy, the awarding of punitive damages, the issuance of any injunction, costs and attorney’s fees to the extent permitted by law, or the imposition of sanctions for
abuse of the arbitration process. The arbitrator’s award must be rendered in a writing that sets forth the essential findings and conclusions on which the arbitrator’s award is based. 

(iv) Representation and Costs. Each party may be represented in the arbitration by an attorney or other
representative selected by the party. The Company or Affiliate shall be responsible for its own costs, the AAA filing fee and all other fees, costs and expenses of the arbitrator and AAA for administering the arbitration. The claimant shall be
responsible for his attorney’s or representative’s fees, if any. However, if any party prevails on a statutory claim which allows the prevailing party costs and/or attorneys’ fees, the arbitrator may award costs and reasonable
attorneys’ fees as provided by such statute. 
 (v) Discovery; Location; Rules of Evidence. Discovery
will be allowed to the same extent afforded under the Federal Rules of Civil Procedure. Arbitration will be held at a location selected by the Company. AAA rules notwithstanding, the admissibility of evidence offered at the arbitration shall be
determined by the arbitrator who shall be the judge of its materiality and relevance. Legal rules of evidence will not be controlling, and the standard for admissibility of evidence will generally be whether it is the type of information that
responsible people rely upon in making important decisions. 
 (vi) Confidentiality. The existence,
content or results of any arbitration may not be disclosed by a party or arbitrator without the prior written consent of both parties. Witnesses who are not a party to the arbitration shall be excluded from the hearing except to testify. 

(i)           Construction. Whenever any words are used herein in the masculine,
they shall be construed as though they were used in the feminine in all cases where they would so apply; and wherever any words are used in the singular or plural, they shall be construed as though they were used in the plural or singular, as the
case may be, in all cases where they would so apply. Titles of sections are for general information only, and this Plan is not to be construed with reference to such titles. 
 (j)           Severability. If any provision of this Plan or any Award agreement or any Award (a) is or becomes or is deemed to be invalid,
illegal or unenforceable in any jurisdiction, or as to any person or Award, or (b) would disqualify this Plan, any Award agreement or any Award under any law the Administrator deems applicable, then such provision should be construed or deemed
amended to conform to applicable laws, or if it cannot be so construed or deemed 

  
 23 

 
amended without, in the determination of the Administrator, materially altering the intent of this Plan, Award agreement or Award, then such provision should be stricken as to such jurisdiction,
person or Award, and the remainder of this Plan, such Award agreement and such Award will remain in full force and effect. 

  
 24

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00211-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00211-of-00352.parquet"}]]