Document:

Tessera Technologies, Inc. Third Amended and Restated 2003 Equity Incentive Plan

 Exhibit 4.1 
 TESSERA TECHNOLOGIES, INC. 
 THIRD AMENDED AND RESTATED 2003 EQUITY INCENTIVE PLAN 

1. Purposes of the Plan. The purposes of this Plan are to attract and retain the best available personnel for positions of responsibility, to
provide additional incentive to Employees, Directors and Consultants and to promote the success of the Company’s business. Options granted under the Plan may be Incentive Stock Options or Nonstatutory Stock Options, as determined by the
Administrator at the time of grant. Restricted Stock, Performance Awards, Dividend Equivalents, Deferred Stock, Stock Payments and Stock Appreciation Rights may also be granted under the Plan. 
 2. Definitions. As used herein, the following definitions shall apply: 
 (a) “Administrator” means the Board or any of its Committees as shall be administering the Plan in accordance with
Section 4 hereof. 
 (b) “Applicable Laws” means the requirements relating to the administration of
stock option plans under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any foreign country or jurisdiction
where Awards are granted under the Plan. 
 (c) “Award” shall mean an Option, a Restricted Stock award, a
Performance Award, a Dividend Equivalents award, a Deferred Stock award, a Stock Payment award or a Stock Appreciation Right which may be awarded or granted under the Plan. 
 (d) “Award Agreement” shall mean a written or electronic agreement between the Company and the Holder which shall contain
such terms and conditions with respect to an Award as the Administrator shall determine, consistent with the Plan. 
 (e)
“Board” means the Board of Directors of the Company. 
 (f) “Code” means the Internal
Revenue Code of 1986, as amended, or any successor statute or statutes thereto. Reference to any particular Code section shall include any successor section. 
 (g) “Committee” means a committee of Directors appointed by the Board in accordance with Section 4 hereof.

 (h) “Common Stock” means the Common Stock of the Company. 
 (i) “Company” means Tessera Technologies, Inc., a Delaware corporation. 
 (j) “Consultant” means any consultant or adviser if: (i) the consultant or adviser renders bona fide services
to the Company or any Parent or Subsidiary of the Company; (ii) the services rendered by the consultant or adviser are not in connection with the offer or sale of securities in a capital-raising transaction and do not directly or 

 indirectly promote or maintain a market for the Company’s securities; and (iii) the consultant
or adviser is a natural person who has contracted directly with the Company or any Parent or Subsidiary of the Company to render such services. 
 (k) “Deferred Stock” shall mean Common Stock awarded under Section 9(e) of the Plan. 
 (l) “Director” means a member of the Board of Directors of the Company. 
 (m) “Disability” means total and permanent disability as defined in Section 22(e)(3) of the Code. 
 (n) “Dividend Equivalent” shall mean a right to receive the equivalent value (in cash or Common Stock) of dividends paid on Common Stock, awarded under Section 9(c) of the Plan. 
 (o) “DRO” shall mean a domestic relations order as defined by the Code or Title I of the Employee Retirement Income
Security Act of 1974, as amended, or the rules thereunder. 
 (p) “Employee” means any person, including
executive officers and Directors, employed by the Company or any Parent or Subsidiary of the Company. A Service Provider shall not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers
between locations of the Company or between the Company, its Parent, any Subsidiary, or any successor. For purposes of Incentive Stock Options, no such leave may exceed ninety (90) days, unless reemployment upon expiration of such leave is
guaranteed by statute or contract. If reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed, on the 181st day of such leave any Incentive Stock Option held by the Holder shall cease to be treated as an
Incentive Stock Option and shall be treated for tax purposes as a Nonstatutory Stock Option. Neither service as a Director nor payment of a director’s fee by the Company shall be sufficient to constitute “employment” by the Company.

 (q) “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor statute or
statutes thereto. Reference to any particular Code section shall include any successor section. 
 (r) “Fair Market
Value” means, as of any date, the value of Common Stock determined as follows: 
 (i) If the Common Stock is listed
on any established stock exchange or a national market system, including without limitation the Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock
(or the closing bid, if no sales were reported) as quoted on such exchange or system for the last market trading day prior to the time of determination, as reported in The Wall Street Journal or such other source as the Administrator deems
reliable; 
  

 2 

 (ii) If the Common Stock is regularly quoted by a recognized securities dealer but
selling prices are not reported, its Fair Market Value shall be the mean between the high bid and low asked prices for the Common Stock on the last market trading day prior to the day of determination; or 
 (iii) In the absence of an established market for the Common Stock, the Fair Market Value thereof shall be determined in good faith by the
Administrator. 
 (s) “Full-Value Award” means any Award under which a Holder may be issued shares of Common
Stock without the Holder tendering consideration therefor in the form of Common Stock or cash at least equal to the Fair Market Value at the date of grant of the Common Stock issuable upon exercise or maturity of the Award. 
 (t) “Holder” means the holder of an outstanding Award granted under or issued pursuant to the Plan. 
 (u) “Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the meaning of
Section 422 of the Code. 
 (v) “Non-Employee Director” means a Director who is not an Employee of the
Company. 
 (w) “Nonstatutory Stock Option” means an Option not intended to qualify as an Incentive Stock
Option, or which is designated as an Incentive Stock Option by the Administrator but fails to qualify as an incentive stock option within the meaning of Section 422 of the Code. 
 (x) “Option” means a stock option granted pursuant to the Plan. 
 (y) “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e)
of the Code. 
 (z) “Performance Award” shall mean a cash bonus, stock bonus or other performance or
incentive award that is paid in cash, Common Stock or a combination of both, awarded under Section 9(b) of the Plan. 
 (aa) “Performance Criteria” shall mean the following business criteria with respect to the Company, any Subsidiary or any division or operating unit thereof: (i) net income, (ii) pre-tax income,
(iii) operating income, (iv) cash flow, (v) earnings per share, (vi) return on equity, (vii) return on invested capital or assets, (viii) cost reductions or savings, (ix) funds from operations,
(x) appreciation in the Fair Market Value of a share of Common Stock, (xi) operating profit, (xii) working capital and (xiii) earnings before any one or more of the following items: interest, taxes, depreciation or amortization;
provided that each of the business criteria described in subsections (i) through (xiii) shall be determined in accordance with generally accepted accounting principles (“GAAP”). For each fiscal year of the Company,
the Administrator may provide for objectively determinable adjustments, as determined in accordance with GAAP, to any of the business criteria described in subsections (i) through (xiii) for one or more of the items of 
  

 3 

 gain, loss, profit or expense: (A) determined to be extraordinary or unusual in nature or infrequent
in occurrence, (B) related to the disposal of a segment of a business, (C) related to a change in accounting principles under GAAP, (D) related to discontinued operations that do not qualify as a segment of a business under GAAP, and
(E) attributable to the business operations of any entity acquired by the Company during the fiscal year. 
 (bb)
“Plan” means this Third Amended and Restated 2003 Equity Incentive Plan. 
 (cc) “Public Trading
Date” shall mean the first date upon which Common Stock of the Company is listed (or approved for listing) upon notice of issuance on any securities exchange or designated (or approved for designation) upon notice of issuance as a national
market security on an interdealer quotation system. 
 (dd) “Restricted Stock” means shares of Common Stock
awarded under Section 8 below. 
 (ee) “Rule 16b-3” means that certain Rule 16b-3 under the Exchange
Act, as such Rule may be amended from time to time. 
 (ff) “Section 16(b)” means Section 16(b) of the
Securities Exchange Act of 1934, as amended. 
 (gg) “Section 162(m) Participant” shall mean any key Employee
designated by the Administrator as a key Employee whose compensation for the fiscal year in which the key Employee is so designated or a future fiscal year may be subject to the limit on deductible compensation imposed by Section 162(m) of the
Code. 
 (hh) “Securities Act” means the Securities Act of 1933, as amended, or any successor statute or
statutes thereto. Reference to any particular Securities Act section shall include any successor section. 
 (ii)
“Service Provider” means an Employee, Director or Consultant. 
 (jj) “Share” means a share
of the Common Stock, as adjusted in accordance with Section 13 below. 
 (kk) “Stock Appreciation Right”
shall mean a stock appreciation right granted under Section 10 of the Plan. 
 (ll) “Stock Payment”
shall mean (i) a payment in the form of shares of Common Stock, or (ii) an option or other right to purchase shares of Common Stock, as part of a deferred compensation arrangement, made in lieu of all or any portion of the compensation,
including without limitation, salary, bonuses and commissions, that would otherwise become payable to a Service Provider in cash, awarded under Section 9(d) of the Plan. 
  

 4 

 (mm) “Subsidiary” means a “subsidiary corporation,” whether
now or hereafter existing, as defined in Section 424(f) of the Code. 
 3. Stock Subject to the Plan. Subject to the provisions of
Section 13 of the Plan, the maximum aggregate number of Shares which may be subject to Awards under the Plan is the sum of: (a) 7,488,930 shares, plus (b) with respect to options granted under the Tessera, Inc. 1999 Stock Plan that
are assumed by the Company and expire or are canceled without having been exercised in full, the number of Shares subject to each such option as to which such option was not exercised prior to its expiration or cancellation; provided,
however, that each Share issued under the Plan pursuant to a Full-Value Award shall reduce the number of available Shares by one and one-half (1.5) shares. Shares issued upon exercise of Awards may be authorized but unissued, or
reacquired Common Stock. The Shares may be authorized but unissued, or reacquired Common Stock. 
 If an Award expires or becomes
unexercisable without having been exercised in full, the unpurchased Shares which were subject thereto shall become available for future grant or sale under the Plan (unless the Plan has terminated). If Shares of Restricted Stock are forfeited back
to the Company or repurchased by the Company at a price not greater than their original exercise price and pursuant to the exercise of the Company’s repurchase rights or the forfeiture provisions under the Plan, such Shares shall become
available for future grant under the Plan. To the extent that Shares are delivered pursuant to the exercise of a Stock Appreciation Right, the number of underlying Shares as to which the exercise related shall be counted against the Plan’s
share limits set forth above, as opposed to only counting the Shares actually issued. For example, if a Stock Appreciation Right relates to 100,000 Shares and is exercised at a time when the payment due to the Holder is 50,000 Shares, 100,000 Shares
shall be charged against the Plan’s share limits with respect to such exercise. Notwithstanding the provisions of this Section 3, no Shares may again be optioned, granted or awarded if such action would cause an Incentive Stock Option to
fail to qualify as an Incentive Stock Option under Code Section 422. 
 4. Administration of the Plan. 
 (a) Administrator. Except to the extent otherwise provided below, the Plan shall be administered by the Board or a Committee
appointed by the Board, which Committee shall be constituted to comply with Applicable Laws. If administration is delegated to a Committee, the Committee shall have, in connection with the administration of the Plan, the powers theretofore possessed
by the Board (and references in this Plan to the Board shall thereafter be to the Committee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. Notwithstanding
the foregoing, however, from and after the Public Trading Date, a Committee of the Board shall administer the Plan and the Committee shall consist solely of two or more Non-Employee Directors each of whom is both an “outside director,”
within the meaning of Section 162(m) of the Code, and a “non-employee director” within the meaning of Rule 16b-3, and such Committee shall be otherwise comprised to comply with all Applicable Laws. Within the scope of such authority,
the Board or the Committee may (i) delegate to a committee of one or more members of the Board who are not Non-Employee Directors the authority to grant Awards under the Plan to eligible persons who are either (1) not then “covered

  

 5 

 employees,” within the meaning of Section 162(m) of the Code and are not expected to be
“covered employees” at the time of recognition of income resulting from such award or (2) not persons with respect to whom the Company wishes to comply with Section 162(m) of the Code and/or (ii) delegate to a committee of
one or more members of the Board who are not “non-employee directors,” within the meaning of Rule 16b-3, the authority to grant Awards under the Plan to eligible persons who are not then subject to Section 16 of the Exchange Act. In
its absolute discretion, the Board may at any time and from time to time exercise any and all rights and duties of the Committee under the Plan except with respect to matters which under Rule 16b-3 or Section 162(m) of the Code, or any
regulations or rules issued thereunder, are required to be determined in the sole discretion of the Committee. Notwithstanding the foregoing, the full Board, acting by a majority of its members in office, shall conduct the general administration of
the Plan with respect to Awards granted to Non-Employee Directors. 
 (b) Powers of the Administrator. Subject to the
provisions of the Plan and, in the case of a Committee, the specific duties delegated by the Board to such Committee, and subject to the approval of any relevant authorities, the Administrator shall have the authority in its discretion: 

(i) to determine the Fair Market Value; 
 (ii) to select the Service Providers to whom Awards may from time to time be granted hereunder; 
 (iii) to determine the number of Shares to be covered by each such Award granted hereunder; 
 (iv) to approve forms
of agreement for use under the Plan; 
 (v) to determine the terms and conditions of any Awards granted hereunder. Such terms
and conditions include, but are not limited to, the exercise price, the time or times when Awards may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or
limitation regarding any Award or the Common Stock relating thereto, based in each case on such factors as the Administrator, in its sole discretion, shall determine; 
 (vi) to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans
established for the purpose of qualifying for preferred tax treatment under foreign tax laws; 
 (vii) to allow Holders to
satisfy withholding tax obligations by electing to have the Company withhold from the Shares to be issued upon exercise of an Award that number of Shares having a Fair Market Value equal to the amount required to be withheld. The Fair Market Value
of the Shares to be withheld shall be determined on the date that the amount of tax to be withheld is to be determined. All elections by Holders to have Shares withheld for this purpose 
  

 6 

 shall be made in such form and under such conditions as the Administrator may deem necessary or
advisable; and 
 (viii) to construe and interpret the terms of the Plan and awards granted pursuant to the Plan. 

(c) Effect of Administrator’s Decision. All decisions, determinations and interpretations of the Administrator shall be
final and binding on all Holders. 
 (d) Provisions Applicable to Section 162(m) Participants. 
 (i) The Administrator, in its discretion, may determine whether an Award is to qualify as performance-based compensation as described in
Section 162(m)(4)(C) of the Code. 
 (ii) Notwithstanding anything in the Plan to the contrary, the Administrator may
grant any Award to a Section 162(m) Participant, including Restricted Stock the restrictions with respect to which lapse upon the attainment of performance goals which are related to one or more of the Performance Criteria and any performance
or incentive award described in Section 9 that vests or becomes exercisable or payable upon the attainment of performance goals which are related to one or more of the Performance Criteria. 
 (iii) To the extent necessary to comply with the performance-based compensation requirements of Section 162(m)(4)(C) of the Code,
with respect to any Award granted under Sections 8 and 9 which may be granted to one or more Section 162(m) Participants, no later than ninety (90) days following the commencement of any fiscal year in question or any other designated
fiscal period or period of service (or such other time as may be required or permitted by Section 162(m) of the Code), the Administrator shall, in writing, (A) designate one or more Section 162(m) Participants, (B) select the
Performance Criteria applicable to the fiscal year or other designated fiscal period or period of service, (C) establish the various performance targets, in terms of an objective formula or standard, and amounts of such Awards which may be
earned for such fiscal year or other designated fiscal period or period of service, and (D) specify the relationship between Performance Criteria and the performance targets and the amounts of such Awards to be earned by each
Section 162(m) Participant for such fiscal year or other designated fiscal period or period of service. Following the completion of each fiscal year or other designated fiscal period or period of service, the Administrator shall certify in
writing whether the applicable performance targets have been achieved for such fiscal year or other designated fiscal period or period of service. In determining the amount earned by a Section 162(m) Participant, the Administrator shall have
the right to reduce (but not to increase) the amount payable at a given level of performance to take into account additional factors that the Administrator may deem relevant to the assessment of individual or corporate performance for the fiscal
year or other designated fiscal period or period of service. 
  

 7 

 (iv) Furthermore, notwithstanding any other provision of the Plan or any Award, the Plan
and any Award which is granted to a Section 162(m) Participant and is intended to qualify as performance- based compensation as described in Section 162(m)(4)(C) of the Code shall be subject to any additional limitations set forth in
Section 162(m) of the Code (including any amendment to Section 162(m) of the Code) or any regulations or rulings issued thereunder that are requirements for qualification as performance-based compensation as described in
Section 162(m)(4)(C) of the Code. To the extent permitted by applicable law, the Plan and Awards granted or awarded hereunder shall be deemed amended to the extent necessary to conform to such requirements. 
 5. Eligibility. 
 (a)
General Eligibility. Awards may be granted to Service Providers. Incentive Stock Options may be granted only to Employees. Each Non-Employee Director of the Company shall be eligible to be automatically granted Options at the times and in the
manner set forth in Section 11. 
 (b) No Right to Continuing Service. Neither the Plan nor any Award shall confer
upon any Holder any right with respect to continuing the Holder’s relationship as a Service Provider with the Company, nor shall it interfere in any way with his or her right or the Company’s right to terminate such relationship at any
time, with or without cause. 
 (c) Award Limit. No Service Provider shall be granted, in any calendar year, Awards to
purchase more than 1,500,000 Shares. The foregoing limitation shall be adjusted proportionately in connection with any change in the Company’s capitalization as described in Section 13. For purposes of this Section 5(c), if an Option
is canceled in the same calendar year it was granted (other than in connection with a transaction described in Section 13), the canceled Option will be counted against the limit set forth in this Section 5(c). For this purpose, if the
exercise price of an Option is reduced, the transaction shall be treated as a cancellation of the Option and the grant of a new Option. 
 6.
Term of Plan. The Plan shall become effective on the date the Plan is approved by the Company’s stockholders (the “Effective Date”). Unless sooner terminated under Section 15 of the Plan, the Plan shall continue in
effect for a term of ten (10) years after the first to occur of (a) the date the Plan is adopted by the Board or (b) the Effective Date. 
 7. Terms of Options. 
 (a) Limitations on Incentive Stock Options. Each Option
shall be designated in the applicable Award Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option. However, notwithstanding such designation, to the extent that the aggregate Fair Market Value of the Shares with respect to
which Incentive Stock Options are exercisable for the first time by the Holder during any calendar year (under all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such Options shall be treated as Nonstatutory Stock Options. For
purposes of this Section 5(a), Incentive Stock Options shall be taken into account in the order in which they were granted. The Fair Market Value of the Shares shall be determined as of the time the Option with respect to such Shares is
granted. 
  

 8 

 (b) Term of Option. The term of each Option shall be stated in the applicable
Award Agreement; provided, however, that the term of an Option shall be no more than ten (10) years from the date of grant thereof. In the case of an Incentive Stock Option granted to a Holder who, at the time the Option is
granted, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Option shall be five (5) years from the date of grant or such shorter term
as may be provided in the Award Agreement. 
 (c) Option Exercise Price. The per share exercise price for the Shares to
be issued upon exercise of an Option shall be such price as is determined by the Administrator; provided, however, that the per Share exercise price shall be no less than one hundred percent (100%) of the Fair Market Value per
Share on the date of grant, except that a Nonstatutory Stock Option may be granted with a per Share exercise price that is less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant so long as any Shares
delivered in respect of such Option shall be charged against the Plan’s share limits set forth in Section 3 as a Full-Value Award; provided, further, that the per Share exercise price shall be no less than the par value per
Share of the Common Stock, unless otherwise permitted by applicable state law. In the case of an Incentive Stock Option granted to an Employee who, at the time of grant of such Option, owns (or is treated as owning under Code Section 424) stock
representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the exercise price per Share shall be no less than one hundred ten percent (110%) of the Fair Market Value per
Share on the date of grant. 
 (d) Consideration. The consideration to be paid for the Shares to be issued upon
exercise of an Option, including the method of payment, shall be determined by the Administrator (and, in the case of an Incentive Stock Option, shall be determined at the time of grant). Such consideration may consist of (i) cash,
(ii) check, (iii) with the consent of the Administrator, a full recourse promissory note bearing interest (at no less than such rate as is a market rate of interest and which then precludes the imputation of interest under the Code) and
payable upon such terms as may be prescribed by the Administrator, (iv) with the consent of the Administrator, other Shares which (A) in the case of Shares acquired from the Company, have been owned by the Holder for more than six
(6) months, or the requisite period necessary to avoid a charge to the Company’s earnings for financial reporting purposes, on the date of surrender, and (B) have a Fair Market Value on the date of surrender equal to the aggregate
exercise price of the Shares as to which such Option shall be exercised, (v) with the consent of the Administrator, delivery of a notice that the Holder has placed a market sell order with a broker with respect to Shares then issuable upon
exercise of the Options and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction of the Option exercise price, provided that payment of such proceeds is then made to the
Company upon settlement of such sale, or (vi) with the consent of the Administrator, any combination of the foregoing methods of payment. In making its determination as to the type of consideration to accept, the Administrator shall consider if

  

 9 

 acceptance of such consideration may be reasonably expected to benefit the Company. In the case of a
promissory note, the Administrator may also prescribe the form of such note and the security to be given for such note. The Option may not be exercised, however, by delivery of a promissory note or by a loan from the Company when or where such loan
or other extension of credit is prohibited by law, and payment in the manner prescribed by the preceding sentences shall not be permitted to the extent that the Administrator determines that payment in such manner may result in an extension or
maintenance of credit, an arrangement for the extension of credit, or a renewal of an extension of credit in the form of a personal loan to or for any Director or executive officer of the Company that is prohibited by Section 13(k) of the
Exchange Act or other Applicable Law. 
 (e) Exercise of Option. 
 (i) Procedure for Exercise; Rights as a Stockholder. Any Option granted hereunder shall be vested and exercisable according to the
terms hereof at such times and under such conditions as determined by the Administrator and set forth in the Award Agreement. Unless the Administrator provides otherwise, vesting of Options granted hereunder shall be tolled during any unpaid leave
of absence. An Option may not be exercised for a fraction of a Share. 
 An Option shall be deemed exercised when the Company
receives: (A) written or electronic notice of exercise (in accordance with the Award Agreement) from the person entitled to exercise the Option, (B) such representations and documents as the Administrator, in its sole discretion, deems
necessary or advisable to effect compliance with Applicable Laws, (C) upon the exercise of all or a portion of an unvested Option pursuant to Section 8(h), a Restricted Stock purchase agreement in a form determined by the Administrator and
signed by the Holder or other person then entitled to exercise the Option or such portion of the Option; and (D) full payment for the Shares with respect to which the Option is exercised, including payment of any applicable withholding tax.
Full payment may consist of any consideration and method of payment authorized by the Administrator and permitted by the Award Agreement and the Plan. Shares issued upon exercise of an Option shall be issued in the name of the Optionee or, if
requested by the Holder, in the name of the Holder and his or her spouse. Until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or
receive dividends or any other rights as a stockholder shall exist with respect to the Shares, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such Shares promptly after the Option is exercised. No
adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 13 of the Plan. 
 (ii) Termination of Relationship as a Service Provider. If a Holder ceases to be a Service Provider other than by reason of the
Holder’s death or Disability, such Holder may exercise his or her Option within such period of time as is specified in the Award Agreement to the extent that the Option is vested on 
  

 10 

 the date of termination (but in no event later than the expiration of the term of the Option as set forth
in the Award Agreement). In the absence of a specified time in the Award Agreement, the Option shall remain exercisable for three (3) months following the Optionee’s termination. If, on the date of termination, the Holder is not vested as
to his or her entire Option, the Shares covered by the unvested portion of the Option shall revert to the Plan. If, after termination, the Holder does not exercise his or her Option within the time specified by the Administrator, the Option shall
terminate, and the Shares covered by such Option shall revert to the Plan. 
 (iii) Disability of Optionee. If a Holder
ceases to be a Service Provider as a result of the Holder’s Disability, the Holder may exercise his or her Option within such period of time as is specified in the Award Agreement to the extent the Option is vested on the date of termination
(but in no event later than the expiration of the term of such Option as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the Option shall remain exercisable for twelve (12) months following the
Holder’s termination. If, on the date of termination, the Holder is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall revert to the Plan. If, after termination, the Holder does not
exercise his or her Option within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
 (iv) Death of Optionee. If a Holder dies while a Service Provider, the Option may be exercised within such period of time as is specified in the Award Agreement, by the Holder’s estate or by a person who
acquires the right to exercise the Option by bequest or inheritance, to the extent that the Option is vested on the date of death (but in no event later than the expiration of the term of such Option as set forth in the Notice of Grant). In the
absence of a specified time in the Award Agreement, the Option shall remain exercisable for twelve (12) months following the Optionee’s termination. If, at the time of death, the Holder is not vested as to his or her entire Option, the
Shares covered by the unvested portion of the Option shall immediately revert to the Plan. The Option may be exercised by the executor or administrator of the Holder’s estate or, if none, by the person(s) entitled to exercise the Option under
the Holder’s will or the laws of descent or distribution. If the Option is not so exercised within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
 (f) Regulatory Extension. A Holder’s Award Agreement may provide that if the exercise of the Option following the termination
of the Holder’s status as a Service Provider (other than upon the Holder’s death or Disability) would be prohibited at any time solely because the issuance of shares would violate the registration requirements under the Securities Act,
then the Option shall terminate on the earlier of (i) the expiration of the term of the Option set forth in Section 7(b) or (ii) the expiration of a period of thirty (30) days after the termination of the Holder’s status as
a Service Provider during which the exercise of the Option would not be in violation of such registration requirements. 
  

 11 

 (g) Early Exercisability. The Administrator may provide in the terms of a
Holder’s Award Agreement that the Holder may, at any time before the Holder’s status as a Service Provider terminates, exercise the Option in whole or in part prior to the full vesting of the Option; provided, however, that
Shares acquired upon exercise of an Option which has not fully vested may be subject to any repurchase, forfeiture, transfer or other restrictions as the Administrator may determine in its sole discretion. 
 (h) Options in Lieu of Compensation. Options may be granted under the Plan to Employees and Consultants in lieu of cash bonuses
which would otherwise be payable to such Employees and Consultants and to Non-Employee Directors in lieu of directors’ fees which would otherwise be payable to such Non-Employee Directors, pursuant to such policies which may be adopted by the
Administrator from time to time. 
 8. Restricted Stock Awards. 
 (a) Rights to Purchase. Restricted Stock may be issued to Service Providers either alone, in addition to, or in tandem with other
Awards granted under the Plan and/or cash awards made outside of the Plan. After the Administrator determines that it will offer Restricted Stock under the Plan, it shall advise the offeree in writing or electronically of the terms, conditions and
restrictions related to the offer, including the number of Shares that such person shall be entitled to purchase, the price to be paid, if any, and the time within which such person must accept such offer; provided, however, that the
purchase price shall be no less than the par value of the Common Stock to be purchased, unless otherwise permitted by applicable state law. Restricted Stock may also be awarded in consideration for past services actually rendered to the Company for
its benefit. The offer shall be accepted by execution of an Award Agreement in the form determined by the Administrator. 
 (b) Repurchase Option; Forfeiture. Unless the Administrator determines otherwise, the Award Agreement shall grant the Company a repurchase option exercisable upon the voluntary or involuntary termination of the Holder’s service
with the Company for any reason (including death or Disability). If no cash consideration was paid by the Holder upon issuance, a Holder’s rights in unvested Restricted Stock shall be forfeited to the Company, without consideration, upon the
voluntary or involuntary termination of the Holder’s service with the Company for any reason (including death or Disability). The purchase price for Shares repurchased by the Company pursuant to such repurchase right and the rate at which such
repurchase right or forfeiture provisions shall lapse shall be determined by the Administrator in its sole discretion, and shall be set forth in the Award Agreement; provided, however, that, except with respect to shares of Restricted
Stock granted to Section 162(m) Participants, by action taken after the Restricted Stock is issued, the Administrator may, on such terms and conditions as it may determine to be appropriate, remove any or all of the restrictions imposed by the
terms of the Award Agreement. Restricted Stock may not be sold or encumbered until all restrictions are terminated or expire. 
  

 12 

 (c) Other Provisions. The Award Agreement shall contain such other terms,
provisions and conditions not inconsistent with the Plan as may be determined by the Administrator in its sole discretion. 
 (d) Rights as a Stockholder. Once Restricted Stock is issued, the Holder shall have rights equivalent to those of a stockholder and shall be a stockholder when his or her purchase is entered upon the records of the duly authorized
transfer agent of the Company. No adjustment shall be made for a dividend or other right for which the record date is prior to the date the Restricted Stock is issued, except as provided in Section 13 of the Plan. 
 9. Performance Awards, Dividend Equivalents, Deferred Stock and Stock Payments. 
 (a) Eligibility. One or more Performance Awards, Dividend Equivalents, awards of Deferred Stock and/or Stock Payments may be
granted to any Service Provider whom the Administrator determines should receive such an Award. 
 (b) Performance
Awards. 
 (i) Any Service Provider selected by the Administrator may be granted one or more Performance Awards. The value
of such Performance Awards may be linked to any one or more of the Performance Criteria or other specific performance criteria determined appropriate by the Administrator, in each case on a specified date or dates or over any period or periods
determined by the Administrator. In making such determinations, the Administrator shall consider (among such other factors as it deems relevant in light of the specific type of award) the contributions, responsibilities and other compensation of the
particular Service Provider. 
 (ii) Without limiting Section 9(b)(i), the Administrator may grant Performance Awards to
any 162(m) Participant in the form of a cash bonus payable upon the attainment of objective performance goals which are established by the Administrator and relate to one or more of the Performance Criteria, in each case on a specified date or dates
or over any period or periods determined by the Administrator. Any such bonuses paid to 162(m) Participants shall be based upon objectively determinable bonus formulas established in accordance with the provisions of Section 4(d). Unless
otherwise specified by the Administrator at the time of grant, the Performance Criteria with respect to a Performance Award payable to a 162(m) Participant shall be determined on the basis of generally accepted accounting principles. 
 (c) Dividend Equivalents. 
 (i) Any Service Provider selected by the Administrator may be granted Dividend Equivalents based on the dividends declared on Common Stock, to be credited as of dividend payment dates, during the period between the
date a Stock Appreciation Right, Deferred Stock or Performance Award is granted, and the date such Stock Appreciation Right, Deferred Stock or Performance Award is 
  

 13 

 exercised, vests or expires, as determined by the Administrator. Such Dividend Equivalents shall be
converted to cash or additional shares of Common Stock by such formula and at such time and subject to such limitations as may be determined by the Administrator. 
 (ii) Any Holder of an Option who is a Service Provider selected by the Administrator may be granted Dividend Equivalents based on the
dividends declared on Common Stock, to be credited as of dividend payment dates, during the period between the date an Option is granted, and the date such Option is exercised, vests or expires, as determined by the Administrator. Such Dividend
Equivalents shall be converted to cash or additional shares of Common Stock by such formula and at such time and subject to such limitations as may be determined by the Administrator. 
 (iii) Dividend Equivalents granted with respect to Options intended to be qualified performance-based compensation for purposes of
Section 162(m) of the Code shall be payable, with respect to pre-exercise periods, regardless of whether such Option is subsequently exercised. 
 (d) Stock Payments. Any Service Provider selected by the Administrator may receive Stock Payments in the manner determined from time to time by the Administrator. The number of shares shall be determined by the
Administrator and may be based upon the Performance Criteria or other specific performance criteria determined appropriate by the Administrator, determined on the date such Stock Payment is made or on any date thereafter. 
 (e) Deferred Stock. Any Service Provider selected by the Administrator may be granted an award of Deferred Stock in the manner
determined from time to time by the Administrator. The number of shares of Deferred Stock shall be determined by the Administrator and may be linked to the Performance Criteria or other specific performance criteria determined to be appropriate by
the Administrator, in each case on a specified date or dates or over any period or periods determined by the Administrator. Common Stock underlying a Deferred Stock award will not be issued until the Deferred Stock award has vested, pursuant to a
vesting schedule or performance criteria set by the Administrator. Unless otherwise provided by the Administrator, a Holder of Deferred Stock shall have no rights as a Company stockholder with respect to such Deferred Stock until such time as the
Award has vested and the Common Stock underlying the Award has been issued. 
 (f) Term. The term of a Performance
Award, Dividend Equivalent, award of Deferred Stock and/or Stock Payment shall be set by the Administrator in its discretion. 
 (g) Exercise or Purchase Price. The Administrator may establish the exercise or purchase price of a Performance Award, shares of Deferred Stock or shares received as a Stock Payment; provided, however, that such price
shall not be less than the par value of a share of Common Stock, unless otherwise permitted by applicable state law. 
  

 14 

 (h) Exercise Upon Termination of Relationship as a Service Provider. A Performance
Award, Dividend Equivalent, award of Deferred Stock and/or Stock Payment is exercisable or payable only while the Holder is a Service Provider, as applicable; provided, however, that the Administrator in its sole and absolute
discretion may provide that the Performance Award, Dividend Equivalent, award of Deferred Stock and/or Stock Payment may be exercised or paid subsequent to a termination of the Holder’s relationship as a Service Provider following a
“change of control or ownership” (within the meaning of Section 1.162-27(e)(2)(v) or any successor regulation thereto) of the Company; provided, further, that except with respect to Performance Awards granted to
Section 162(m) Participants, the Administrator in its sole and absolute discretion may provide that Performance Awards may be exercised or paid following a termination of the Holder’s relationship as a Service Provider without cause, or
following a change in control of the Company, or because of the Holder’s retirement, death or Disability, or otherwise. 
 (i) Form of Payment. Payment of the amount determined under Section 9(b) or 9(c) above shall be in cash, in Common Stock or a combination of both, as determined by the Administrator. To the extent any payment under this
Section 9 is effected in Common Stock, it shall be made subject to satisfaction of all provisions of Section 16. 
 10. Stock
Appreciation Rights. 
 (a) Grant of Stock Appreciation Rights. A Stock Appreciation Right may be granted to any
Service Provider selected by the Administrator. A Stock Appreciation Right may be granted (i) in connection and simultaneously with the grant of an Option, (ii) with respect to a previously granted Option, or (iii) independent of an
Option. A Stock Appreciation Right shall be subject to such terms and conditions not inconsistent with the Plan as the Administrator shall impose and shall be evidenced by an Award Agreement. 
 (b) Coupled Stock Appreciation Rights. 
 (i) A Coupled Stock Appreciation Right (“CSAR”) shall be related to a particular Option and shall be exercisable only
when and to the extent the related Option is exercisable. 
 (ii) A CSAR may be granted to the Holder for no more than the
number of shares subject to the simultaneously or previously granted Option to which it is coupled. 
 (iii) A CSAR shall
entitle the Holder (or other person entitled to exercise the Option pursuant to the Plan) to surrender to the Company unexercised a portion of the Option to which the CSAR relates (to the extent then exercisable pursuant to its terms) and to receive
from the Company in exchange therefor an amount determined by multiplying the difference obtained by subtracting the Option exercise price from the Fair Market Value of a share of Common Stock on the date of exercise of the CSAR by the number of
shares of Common Stock with respect to which the CSAR shall have been exercised, subject to any limitations the Administrator may impose. 
  

 15 

 (c) Independent Stock Appreciation Rights. 
 (i) An Independent Stock Appreciation Right (“ISAR”) shall be unrelated to any Option and shall have a term set by the
Administrator; provided, that the term of an ISAR shall be no more than ten (10) years. An ISAR shall be exercisable in such installments as the Administrator may determine. An ISAR shall cover such number of shares of Common Stock as
the Administrator may determine. The exercise price per share of Common Stock subject to each ISAR shall be set by the Administrator; provided, that the per share exercise price of an ISAR shall be no less than one hundred percent
(100%) of the Fair Market Value per Share on the date of grant of such ISAR, except that an ISAR may be granted with a per share exercise price that is less than one hundred percent (100%) of the Fair Market Value per Share on the date of
grant so long as any Shares delivered in respect of such ISAR shall be charged against the Plan’s share limits set forth in Section 3 as a Full-Value Award; provided, further, that the per share exercise price of an ISAR
shall be no less than the par value per share of the Common Stock, unless otherwise permitted by applicable state law. An ISAR is exercisable only while the Holder is a Service Provider; provided that the Administrator may determine that the
ISAR may be exercised subsequent to termination of the Holder’s relationship as a Service Provider without cause, or following a change in control of the Company, or because of the Holder’s retirement, death or Disability, or otherwise.

 (ii) An ISAR shall entitle the Holder (or other person entitled to exercise the ISAR pursuant to the Plan) to exercise all
or a specified portion of the ISAR (to the extent then exercisable pursuant to its terms) and to receive from the Company an amount determined by multiplying the difference obtained by subtracting the exercise price per share of the ISAR from the
Fair Market Value of a share of Common Stock on the date of exercise of the ISAR by the number of shares of Common Stock with respect to which the ISAR shall have been exercised, subject to any limitations the Administrator may impose. 

(d) Payment and Limitations on Exercise. 
 (i) Payment of the amounts determined under Section 9(b)(iii) and 9(c)(ii) above shall be in cash, in Common Stock (based on its Fair
Market Value as of the date the Stock Appreciation Right is exercised) or a combination of both, as determined by the Administrator. To the extent such payment is effected in Common Stock it shall be made subject to satisfaction of all provisions of
Section 16. 
 (ii) Holders of Stock Appreciation Rights may be required to comply with any timing or other restrictions
with respect to the settlement or exercise of a Stock Appreciation Right, including a window-period limitation, as may be imposed in the discretion of the Administrator. 
  

 16 

 11. Automatic Awards to Non-Employee Directors. 
 (a) During the term of the Plan, a person who is initially elected or appointed to the Board after the Effective Date and who is a
Non-Employee Director at the time of such initial election or appointment automatically shall be granted 10,000 shares of Restricted Stock (subject to adjustment as provided in Section 13) on the date of such initial election or appointment (an
“Initial Restricted Stock Award”). In addition, during the term of the Plan, each Non-Employee Director automatically shall be granted (i) an Option to purchase 3,000 shares of Common Stock (subject to adjustment as provided in
Section 13) (a “Subsequent Option”), and (ii) 3,000 shares of Restricted Stock (subject to adjustment as provided in Section 13) (a “Subsequent Restricted Stock Award”), on the date of each annual
meeting of stockholders following the Effective Date; provided, however, that a person who is initially elected to the Board after the Effective Date at an annual meeting of stockholders and who is a Non-Employee Director at the time
of such initial election shall receive only an Initial Restricted Stock Award on the date of such election and shall not receive a Subsequent Option or a Subsequent Restricted Stock Award until the date of the next annual meeting of stockholders
following such initial election. Members of the Board who are employees of the Company who subsequently retire from the Company and remain on the Board will not receive an Initial Restricted Stock Award pursuant to the first sentence above, but to
the extent that they are otherwise eligible, will receive, after retirement from employment with the Company, Subsequent Options and Subsequent Restricted Stock Awards as described in the preceding sentence. 
 (b) The exercise price per share of the shares subject to each Subsequent Option granted to a Non-Employee Director shall equal one
hundred percent (100%) of the Fair Market Value per Share on the date of grant. The purchase price per share of the shares subject to each Initial Restricted Stock Award and each Subsequent Restricted Stock Award shall equal the par value per
share of the Common Stock. 
 (c) Except as otherwise provided in this Section 11, Initial Restricted Stock Awards and
Subsequent Restricted Stock Awards granted to Non-Employee Directors pursuant to this Section 11 shall be subject to the terms and conditions of Section 8. Initial Restricted Stock Awards and Subsequent Restricted Stock Awards shall be
subject to a repurchase option in favor of the Company upon the voluntary or involuntary termination of the Non-Employee Director’s service with the Company for any reason (including death or Disability). The repurchase price shall be equal to
the original purchase price per share for such Award. Initial Restricted Stock Awards granted to Non-Employee Directors shall be released from the Company’s repurchase option over four (4) years, with twenty-five percent (25%) of the
shares subject to each Restricted Stock Award being released from the Company’s repurchase option on the one year anniversary of the date of issuance and the remaining shares being released from the Company’s repurchase option in twelve
(12) equal quarterly installments thereafter, unless otherwise determined by the Administrator. Subsequent Restricted Stock Awards granted to Non-Employee Directors shall be released from the Company’s repurchase option in four
(4) equal quarterly installments over a 12-month period following the date of the Award, unless otherwise determined by the Administrator. 
  

 17 

 (d) Except as otherwise provided in this Section 11, Subsequent Options granted to
Non-Employee Directors pursuant to this Section 11 shall be subject to the terms and conditions of Section 7. Subsequent Options granted to Non-Employee Directors shall vest and become exercisable in equal monthly installments over a
12-month period following the date of grant, unless otherwise determined by the Administrator. Subject to Sections 7(e)(ii), (iii) and (iv), the term of each Option granted to a Non-Employee Director shall be ten (10) years from the date
the Subsequent Option is granted. 
 12. Non-Transferability of Awards. 
 (a) No Award under the Plan may be sold, pledged, assigned hypothecated, transferred, or disposed of in any manner other than by will or
the laws of descent and distribution or, subject to the consent of the Administrator, pursuant to a DRO, unless and until such Award has been exercised, or the Shares underlying such Award have been issued, and all restrictions applicable to such
shares have lapsed. 
 (b) During the lifetime of the Holder, only he or she may exercise an Award (or any portion thereof)
granted to him or her under the Plan, unless it has been disposed of with the consent of the Administrator pursuant to a DRO. After the death of the Holder, any exercisable portion of an Award may, prior to the time when such portion becomes
unexercisable under the Plan or the applicable award Agreement, be exercised by his or her personal representative or by any person empowered to do so under the deceased Holder’s will or under the then applicable laws of descent and
distribution. 
 13. Adjustments Upon Changes in Capitalization, Merger or Asset Sale. 
 (a) Subject to Section 13(e), in the event that the Administrator determines that any dividend or other distribution (whether in the
form of cash, Common Stock, other securities, or other property), recapitalization, reclassification, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, liquidation, dissolution, or
sale, transfer, exchange or other disposition of all or substantially all of the assets of the Company, or exchange of Common Stock or other securities of the Company, issuance of warrants or other rights to purchase Common Stock or other securities
of the Company, or other similar corporate transaction or event, in the Administrator’s sole discretion, affects the Common Stock such that an adjustment is determined by the Administrator to be appropriate in order to prevent dilution or
enlargement of the benefits or potential benefits intended by the Company to be made available under the Plan or with respect to any Award, then the Administrator shall, in such manner as it may deem equitable, adjust any or all of: 
 (i) the number and kind of shares of Common Stock (or other securities or property) with respect to which Awards may be granted or awarded
(including, but not limited to, adjustments of the limitations in Section 3 on the 
  

 18 

 maximum number and kind of shares which may be issued and adjustments of the maximum number of Shares
that may be purchased by any Holder in any calendar year pursuant to Section 5(c)); 
 (ii) the number and kind of shares
of Common Stock (or other securities or property) subject to outstanding Awards; and 
 (iii) the grant or exercise price with
respect to any Award. 
 (b) Subject to Sections 13(d) and (e), in the event of any transaction or event described in
Section 13(a), the Administrator, in its sole discretion, and on such terms and conditions as it deems appropriate, either by the terms of the Award or by action taken prior to the occurrence of such transaction or event and either
automatically or upon the Holder’s request, is hereby authorized to take any one or more of the following actions whenever the Administrator determines that such action is appropriate in order to prevent dilution or enlargement of the benefits
or potential benefits intended by the Company to be made available under the Plan or with respect to any Award granted or issued under the Plan or to facilitate such transaction or event: 
 (i) To provide for either the purchase of any such Award for an amount of cash equal to the amount that could have been obtained upon the
exercise of such Award or realization of the Holder’s rights had such Award been currently exercisable or payable or fully vested or the replacement of such Award with other rights or property selected by the Administrator in its sole
discretion; 
 (ii) To provide that such Award shall be exercisable as to all shares covered thereby, notwithstanding anything
to the contrary in the Plan or the provisions of such Award; 
 (iii) To provide that such Award be assumed by the successor
or survivor corporation, or a parent or subsidiary thereof, or shall be substituted for by similar options, rights or awards covering the stock of the successor or survivor corporation, or a parent or subsidiary thereof, with appropriate adjustments
as to the number and kind of shares and prices; 
 (iv) To make adjustments in the number and type of shares of Common Stock
(or other securities or property) subject to outstanding Awards, and/or in the terms and conditions of (including the grant or exercise price), and the criteria included in, outstanding Awards or Awards which may be granted in the future; and

 (v) To provide that immediately upon the consummation of such event, such Award shall not be exercisable and shall
terminate; provided that for a specified period of time prior to such event, such Award shall be exercisable as to all Shares covered thereby, and the restrictions imposed under an Award Agreement upon some or all Shares may be terminated.

  

 19 

 (c) Subject to Section 3, the Administrator may, in its sole discretion, include
such further provisions and limitations in any Award Agreement or certificate, as it may deem equitable and in the best interests of the Company. 
 (d) In the event of a merger or consolidation of the Company with or into another corporation or any other entity or the exchange of substantially all of the outstanding stock of the Company for shares of another
entity or other property in which, after either transaction the prior stockholders of the Company own less than fifty percent (50%) of the voting shares of the continuing or surviving entity, or in the event of the sale of all or substantially
all of the assets of the Company, (either event, a “Change of Control”), then each outstanding Option shall be assumed or an equivalent option or right substituted by the successor corporation or a Parent or Subsidiary of the
successor corporation. In the event that the successor corporation or a Parent or a Subsidiary of the successor corporation refuses to assume or substitute for each outstanding Option, the Holders shall fully vest in and have the right to exercise
each outstanding Option as to all of the Shares covered thereby, including Shares as to which would not otherwise be vested or exercisable. If an Option becomes fully vested and exercisable in lieu of assumption or substitution in the event of a
Change of Control, the Administrator shall notify all Holders that all outstanding Options shall be fully exercisable for a period of at least fifteen (15) days prior to the closing of the Change of Control, and any Options that are not
exercised within such period shall terminate immediately prior to the Change of Control. For the purposes of this paragraph, all outstanding Options shall be considered assumed if, following the consummation of the Change of Control, the Option
confers the right to purchase or receive, for each Share subject to the Option immediately prior to the consummation of the Change of Control, the consideration (whether stock, cash, or other securities property) received in the Change of Control by
holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type chosen by the holders of a majority of the outstanding Shares); provided, however,
that if such consideration received in the Change of Control is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received
upon the exercise of the Option, for each Share subject to the Option, to be solely common stock of the successor corporation or its Parent or Subsidiary equal in fair market value to the per share consideration received by holders of Common Stock
in the Change of Control. 
 (e) With respect to Awards which are granted to Section 162(m) Participants and are intended
to qualify as performance-based compensation under Section 162(m)(4)(C), no adjustment or action described in this Section 13 or in any other provision of the Plan shall be authorized to the extent that such adjustment or action would
cause such Award to fail to so qualify under Section 162(m)(4)(C), or any successor provisions thereto. No adjustment or action described in this Section 13 or in any other provision of the Plan shall be authorized to the extent that such
adjustment or action would cause the Plan to violate Section 422(b)(1) of the Code. Furthermore, no such adjustment or action shall be authorized to the extent such adjustment or action would result in short-swing profits liability under
Section 16 or violate the exemptive conditions of Rule 16b-3 unless the Administrator determines that the Award is not to comply with such exemptive conditions. 
  

 20 

 14. Time of Granting Options and Stock Purchase Rights. The date of grant of an Award shall, for
all purposes, be the date on which the Administrator makes the determination granting such Option or Stock Purchase Right, or such other date as is determined by the Administrator. Notice of the determination shall be given to each Service Provider
to whom an Award is so granted within a reasonable time after the date of such grant. 
 15. Amendment and Termination of the Plan.

 (a) Amendment and Termination. The Board may at any time amend, alter, suspend or terminate the Plan. 
 (b) Stockholder Approval; Prohibition on Repricing Without Stockholder Approval. The Board shall obtain stockholder approval of any
Plan amendment to the extent necessary and desirable to comply with Section 422 of the Code or Applicable Laws. In addition, notwithstanding any provision in this Plan to the contrary, absent approval of the stockholders of the Company, no
Award may be amended to reduce the per share exercise price of the Shares subject to such Award below the per Share exercise price as of the date the Award is granted and, except as permitted by Article 13, no Award may be granted in exchange for,
or in connection with, the cancellation or surrender of an Award having a higher per share exercise price. 
 (c) Effect of
Amendment or Termination. No amendment alteration, suspension or termination of the Plan shall impair the rights of any Holder, unless mutually agreed otherwise between the Holder and the Administrator, which agreement must be in writing and
signed by the Holder and the Company. Termination of the Plan shall not affect the Administrator’s ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination.

 16. Conditions Upon Issuance of Shares. 
 (a) Legal Compliance. Shares shall not be issued pursuant to the exercise of an Award unless the exercise of such Award and the
issuance and delivery of such Shares shall comply with Applicable Laws and shall be further subject to the approval of counsel for the Company with respect to such compliance. 
 (b) Investment Representations. As a condition to the exercise of an Award, the Administrator may require the person exercising
such Award to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a
representation is required. 
 17. Tax Withholding. The Company shall be entitled to require payment in cash or deduction from other
compensation payable to each Holder of any sums required by federal, state or local tax law to be withheld with respect to the issuance, vesting, exercise or payment of any Award. The Administrator may in its discretion and in satisfaction of the
foregoing 
  

 21 

 requirement allow such Holder to elect to have the Company withhold shares of Common Stock otherwise issuable under such
Award (or allow the return of shares of Common Stock) having a Fair Market Value equal to the sums required to be withheld. Notwithstanding any other provision of the Plan, the number of shares of Common Stock which may be withheld with respect to
the issuance, vesting, exercise or payment of any Award (or which may be repurchased from the Holder of such Award within six (6) months after such shares of Common Stock were acquired by the Holder from the Company) in order to satisfy the
Holder’s federal and state income and payroll tax liabilities with respect to the issuance, vesting, exercise or payment of the Award shall be limited to the number of shares which have a Fair Market Value on the date of withholding or
repurchase equal to the aggregate amount of such liabilities based on the minimum statutory withholding rates for federal and state tax income and payroll tax purposes that are applicable to such supplemental taxable income. 
 18. Loans. The Administrator may, in its discretion, extend one or more loans to Service Providers in connection with the exercise or receipt of
an Award granted or awarded under the Plan. The terms and conditions of any such loan shall be set by the Administrator. Notwithstanding the foregoing, no loan shall be made under this Section to the extent such loan shall result in an extension or
maintenance of credit, an arrangement for the extension of credit, or a renewal of an extension of credit in the form of a personal loan to or for any Director or executive officer of the Company that is prohibited by Section 13(k) of the
Exchange Act or other Applicable Law. In the event that the Administrator determines in its discretion that any loan under this Section may be or will become prohibited by Section 13(k) of the Exchange Act or other Applicable Law, the
Administrator may provide that such loan shall be immediately due and payable in full and may take any other action in connection with such loan as the Administrator determines in its discretion to be necessary or appropriate for the repayment,
cancellation or extinguishment of such loan. 
 19. Section 16. Notwithstanding any other provision of the Plan, the Plan, and
any Award granted or awarded to any individual who is then subject to Section 16 of the Exchange Act, shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including
any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule. To the extent permitted by Applicable Law, the Plan and Awards granted or awarded hereunder shall be deemed amended to the extent
necessary to conform to such applicable exemptive rule. 
 20. Inability to Obtain Authority. The inability of the Company to obtain
authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the
failure to issue or sell such Shares as to which such requisite authority shall not have been obtained. 
 21. Reservation of Shares.
The Company, during the term of this Plan, shall at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. 
 22. Stockholder Approval. The Plan shall be subject to approval by the stockholders of the Company within twelve (12) months after the date
the Plan is adopted. Such stockholder 
  

 22 

 approval shall be obtained in the degree and manner required under Applicable Laws. In addition, if the Board determines
that Awards which may be granted to Section 162(m) Participants should continue to be eligible to qualify as performance-based compensation under Section 162(m)(4)(C) of the Code, the Performance Criteria must be disclosed to and approved
by the Company’s stockholders no later than the first stockholder meeting that occurs in the fifth year following the year in which the Company’s stockholders previously approved the Performance Criteria. 
 23. Governing Law. The validity and enforceability of this Plan shall be governed by and construed in accordance with the laws of the State of
Delaware without regard to otherwise governing principles of conflicts of law. 
 24. Section 409A. To the extent that the
Committee determines that any Award granted under the Plan is subject to Section 409A of the Code, the Award Agreement evidencing such Award shall incorporate the terms and conditions required by Section 409A of the Code. To the extent
applicable, the Plan and Award Agreements shall be interpreted in accordance with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such
regulations or other guidance that may be issued after the Effective Date. Notwithstanding any provision of the Plan to the contrary, in the event that following the Effective Date the Committee determines that any Award may be subject to
Section 409A of the Code and related Department of Treasury guidance (including such Department of Treasury guidance as may be issued after the Effective Date), the Committee may adopt such amendments to the Plan and the applicable Award
Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Committee determines are necessary or appropriate to (a) exempt the Award from
Section 409A of the Code and/or preserve the intended tax treatment of the benefits provided with respect to the Award, or (b) comply with the requirements of Section 409A of the Code and related Department of Treasury guidance.

  

 23Digital Optics Corporation Omnibus Stock Option and Award Plan

 Exhibit 4.2 
 DIGITAL OPTICS CORPORATION 
 OMNIBUS STOCK OPTION AND AWARD PLAN 
 ARTICLE I. PREAMBLE 
 1.1 The Digital
Optics Corporation Omnibus Stock Option and Award Plan is intended to secure for the Corporation, its Subsidiaries and its shareholders the benefits arising from ownership of the Corporation’s Common Stock by the employees of the Corporation
and its Subsidiaries and by the directors of the Corporation, all of whom are and will be responsible for the Corporation’s future growth. The Plan is designed to help attract and retain for the Corporation and its Subsidiaries personnel of
superior ability for positions of exceptional responsibility, to reward employees and directors for past services and to motivate such individuals through added incentives to further contribute to the success of the Corporation. With respect to
persons subject to Section 16 of the Act, transactions under this Plan are intended to satisfy the requirements of Rule 16b-3 of the Act. 
 1.2 Awards under the Plan may be made to Eligible Participants in the form of (i) Incentive Stock Options (to Eligible Employees only); (ii) Nonqualified Stock Options; (iii) Restricted Stock; (iv) Stock Awards;
(v) Performance Shares; or (vi) any combination of the foregoing. 
 1.3 The Plan shall be effective February 1, 2001 (the
“Effective Date”), subject to approval by the shareholders of the Corporation to the extent necessary to satisfy the requirements of the Code, any stock exchange upon which the Common Stock may be listed, or other applicable federal or
state law. 
 ARTICLE II. DEFINITIONS 
 Except where the context otherwise indicates, the following definitions apply: 
 2.1 “Acceleration
Event” means the occurrence of a Change of Control or a Corporate Reorganization. 
 2.2 “Award” means an award granted to a
Participant in accordance with the provisions of the Plan, including, but not limited to, Stock Options, Restricted Stock, Stock Awards, Performance Shares, or any combination of the foregoing. 
 2.3 “Award Agreement” means the separate written agreement evidencing each Award granted to a Participant under the Plan. 
 2.4 “Board of Directors” means the Board of Directors of the Corporation. 
 2.5 “Cause” shall be limited to the following events: (i) drug abuse by Participant; (ii) alcohol abuse by Participant if it
interferes with the efficient conduct of business by Participant; (iii) theft, embezzlement or other similar act by Participant of any tangible or intangible asset of the Corporation or any customer, supplier or investor of the Corporation or
any customer, supplier or investor of the Corporation; (iv) commission of any other criminal act by Participant (whether or not Participant is prosecuted and convicted) if such act causes or is 

 likely to cause damage to the business of the Corporation; (v) a material breach by Participant of or the contesting
by Participant of the validity of the terms of any written agreement between the Corporation and Participant, or any written policy of the Corporation known by and applicable to all its employees, but a mere mistake in business judgment shall not
constitute cause unless it is part of a continuing pattern of bad judgment that has caused actual damage to the Corporation or its business, and (vi) willful failure by Participant to follow the instructions of the Board of Directors or an
officer for other supervisory employee of the Corporation to give instructions to Participant, to the extent such instructions are reasonably related to the business of the Corporation, are given in good faith to promote the interest of the
Corporation, would not require Participant to commit any illegal act and are not given to provide the Corporation with cause for terminating Participant. 
 2.6 “Change of Control” means if, after the class of stock then subject to this Plan becomes publicly traded, the direct or indirect beneficial ownership (within the meaning of Section 13(d) of the
Securities Exchange Act of 1934, as amended, and Regulation 13D thereunder) of fifty percent (50%) or more of the class of securities then subject to this Plan is acquired or becomes held by any person or group of persons (within the meaning of
Section 13(d)(3) of the Securities Exchange Act of 1934, as amended) or the sale, mortgage, lease or other transfer in one or more transactions not in the ordinary course of the Corporation’s business of assets or earning power
constituting more than fifty percent (50%) of the assets or earning power of the Corporation and its subsidiaries (taken as a whole) to any such person or group of persons. For the purposes of this Plan, the class of stock then subject to this
Plan shall be deemed to be “publicly traded” if such stock is listed or admitted to unlisted trading privileges on a national securities exchange or as to which sales or bid and offer quotations are reported in the automated system
(“NASDAQ”) operated by the National Association of Securities Dealers. 
 2.7 “Code” means the Internal Revenue Code of
1986, as now in effect or as hereafter amended. (All citations to sections of the Code are to such sections as they may from time to time be amended or renumbered.) 
 2.8 “Committee” means a committee of the Board of Directors established for the administration of the Plan pursuant to Article III and consisting of two or more Directors. To the extent necessary to comply
with Rule 16b-3 under the Exchange Act, the Committee shall consist solely of two or more Non-Employee Directors. The Committee members may also be appointed for such limited purposes as may be provided by the Board of Directors. 
 2.9 “Common Stock” means the common stock of the Corporation to be issued pursuant to the Plan. 
 2.10 “Corporate Reorganization” means the happening of any one (1) of the following: 
 (a) The dissolution or liquidation of the Corporation; 
 (b) A reorganization, merger or consolidation of the Corporation as a result of which the outstanding securities of the class then subject
to this Plan is changed into or exchanged for cash or property or securities not of the Corporation’s issue; 
  

 2 

 (c) The sale of all or substantially all of the assets of the Corporation to another
corporation, person or business entity; 
 (d) The acquisition of stock representing more than eighty percent (80%) of
the voting power of the Corporation’s stock outstanding; or 
 (e) When, during any period of 24 consecutive months
during the existence of the Plan, the individuals who, at the beginning of such period, constitute the Board of Directors (the “Incumbent Directors”) cease for any reason other than death to constitute at least a majority thereof;
provided, however, that a director who was not a director at the beginning of such 24 month period shall be deemed to have satisfied such 24 month requirement, and be an Incumbent Director, if such director was elected by, or on the recommendation
of or with the approval of, at least two-thirds of the directors who then qualified as Incumbent Directors either actually, because they were directors at the beginning of such 24 month period, or by prior operation of this Section 2.10(d).

 2.11 “Corporation” means Digital Optics Corporation, a North Carolina corporation, and its successors and assigns. The term
“Corporation” shall include any corporation which is a member of a controlled group of corporations (as defined in Section 414(b) of the Code, as modified by Section 415(h) of the Code) which includes the Corporation; any trade
or business (whether or not incorporated) which is under common control (as defined in Section 414(c) of the Code, as modified by Section 415(h) of the Code) with the Corporation; any organization (whether or not incorporated) which is a
member of an affiliated service group (as defined in Section 414(m) of the Code) which includes the Corporation; and any other entity required to be aggregated with the Corporation pursuant to regulations under Section 414(o) of the Code.
With respect to all purposes of the Plan, including, but not limited to, the establishment, amendment, termination, operation and administration of the Plan, Digital Optics Corporation shall be authorized to act on behalf of all other entities
included within the definition of “Corporation.” 
 2.12 “Director” means a member of the Board of Directors. 

2.13 “Disability” means disability as determined under procedures established by the Committee or in any Award, as set forth in a
Participant’s Award Agreement. 
 2.14 “Effective Date” shall be the date set forth in Section 1.3 of the Plan.

 2.15 “Eligible Employee” means an Eligible Participant who is an employee of the Corporation or any Subsidiary. 
 2.16 “Eligible Person” means any employee of the Corporation or any Subsidiary or any Director, as well as any other person whose participation
the Committee determines is in the best interest of the Corporation, subject to limitations as may be provided by the Code, the Exchange Act or the Committee. 
 2.17 “Exchange Act” means the Securities Exchange Act of 1934, as now in effect or as hereafter amended. 
  

 3 

 2.18 “Fair Market Value” means, as of a given date and for so long as shares of the Common
Stock are listed on a national securities exchange or reported on The Nasdaq Stock Market as a Nasdaq National Market security, the mean between the high and low sales prices for the Common Stock on such date, or, if no such shares were sold on such
date, the most recent date on which shares of such Common Stock were sold, as reported in The Wall Street Journal. If the Common Stock is not listed on a national securities exchange or reported on The Nasdaq Stock Market as a Nasdaq National Market
security, Fair Market Value shall mean the average of the closing bid and asked prices for such stock in the over-the-counter market as reported by The Nasdaq Stock Market. If the Common Stock is not listed on a national securities exchange or
reported on The Nasdaq Stock Market as a Nasdaq National Market security, or the over-the-counter market, Fair Market Value shall be the fair value thereof determined in good faith by the Committee. 
 2.19 “Grant Date” means, as to any Award, the latest of: 
 (a) the date on which the Committee authorizes the grant of the Award; or 
 (b) the date the Participant receiving the Award becomes an employee or a director of the Corporation or its Subsidiaries, to the extent
employment status is a condition of the grant or a requirement of the Code or the Exchange Act; or 
 (c) such other date
(later than the dates described in (a) and (b) above) as the Committee may designate and as set forth in the Participant’s Award Agreement. 
 2.20 “Incentive Stock Option” means a Stock Option that meets the requirements of Section 422 of the Code and is granted under Article IV of the Plan and designated as an Incentive Stock Option in a
Participant’s Award Agreement. 
 2.21 “Initial Public Offering” means the filing with a regulatory agency in preparation of
registering the Common Stock under the Securities Act of 1933. 
 2.22 “Mature Shares” means shares of Common Stock that have been
held by the Optionee for at least six (6) months following the exercise of a Stock Option or other acquisition of Common Stock. 
 2.23
“Non-Employee Director” shall have the meaning set forth in Rule 16b-3 under the Exchange Act. 
 2.24 “Nonqualified Stock
Option” means a Stock Option that does not meet the requirements of Section 422 of the Code and is granted under Article V of the Plan, or, even if meeting the requirements of Section 422 of the Code, is not intended to be an
Incentive Stock Option and is not so designated in the Participant’s Award Agreement. 
 2.25 “Option Period” means the period
during which a Stock Option may be exercised from time to time, as established by the Committee and set forth in the Award Agreement for each Participant who is granted a Stock Option. 
  

 4 

 2.26 “Option Price” means the purchase price for a share of Common Stock subject to purchase
pursuant to a Stock Option, as established by the Committee and set forth in the Award Agreement for each Participant who is granted a Stock Option. 
 2.27 “Participant” means an Eligible Participant to whom an Award has been granted and who has entered into an Award Agreement evidencing the Award. 
 2.28 “Performance Objectives” shall have the meaning set forth in Article IX of the Plan. 
 2.29 “Performance Period” shall have the meaning set forth in Article IX of the Plan. 
 2.30 “Performance Share” means an Award under Article IX of the Plan of a unit valued by reference to the Common Stock, the payout of which is
subject to achievement of such Performance Objectives, measured during one or more Performance Periods, as the Committee, in its sole discretion, shall establish at the time of such Award and set forth in a Participant’s Award Agreement.

 2.31 “Plan” means the Digital Optics Corporation Omnibus Stock Option and Award Plan, as amended from time to time. 

2.32 “Restricted Stock” means an Award under Article VII of the Plan of shares of Common Stock that are at the time of the Award subject to
restrictions or limitations as to the Participant’s ability to sell, transfer, pledge or assign such shares, which restrictions or limitations may lapse separately or in combination at such time or times, in installments or otherwise, as the
Committee, in its sole discretion, shall determine at the time of such Award and set forth in a Participant’s Award Agreement. 
 2.33
“Restriction Period” means the period commencing on the Grant Date with respect to such shares of Restricted Stock and ending on such date as the Committee, in its sole discretion, shall establish and set forth in a Participant’s
Award Agreement. 
 2.34 “Retirement” means retirement as determined under procedures established by the Committee or in any Award,
as set forth in a Participant’s Award Agreement. 
 2.35 “Stock Award” means an Award of shares of Common Stock under Article
VIII of the Plan. 
 2.36 “Stock Option” means an Award under Article IV or Article V of the Plan of an option to purchase Common
Stock. A Stock Option may be either an Incentive Stock Option or a Nonqualified Stock Option. 
 2.37 “Subsidiary” means a
subsidiary corporation of the Corporation as that term is defined in Code section 424(f). “Subsidiaries” means more than one Subsidiary. 
 2.38 “Termination of Service” means (i) in the case of an Eligible Participants, the discontinuance of employment of such Participant with the Corporation or its Subsidiaries for any reason other than a transfer to another
member of the group consisting of the Corporation 
  

 5 

 and its Subsidiaries; (ii) in the case of a Director who is not an employee of the Corporation or any Subsidiary,
the date such Participant ceases to serve as a Director; and (iii) in the case of all other individuals, the date such Participant ceases to perform services for the Corporation or a Subsidiary. The determination of whether a Participant has
discontinued service shall be made by the Committee in its sole discretion. In determining whether a Termination of Service has occurred, the Committee may provide that service as a consultant or service with a business enterprise in which the
Corporation has a significant ownership interest shall be treated as employment with the Corporation. The Committee shall have the discretion, exercisable either at the time the Award is granted or at the time the Participant terminates employment,
to establish as a provision applicable to the exercise of one or more Awards that during the limited period of exercisability following Termination of Service, the Award may be exercised not only with respect to the number of shares of Stock for
which it is exercisable at the time of the Termination of Service but also with respect to one or more subsequent installments for which the Award would have become exercisable had the Termination of Service not occurred. 
 ARTICLE III. ADMINISTRATION 
 3.1 The
Plan shall be administered by the Committee. Except as otherwise required by Rule 16b-3 under the Exchange Act, the Committee, in its discretion, may delegate to one or more of its members such of its powers as it deems appropriate. The Committee
also may limit the power of any member to the extent necessary to comply with Rule 16b-3 under the Exchange Act or any other law, rule or regulation. The Board of Directors may serve as the Committee, if by the terms of the Plan all members of the
Board of Directors are otherwise eligible to serve on the Committee. 
 3.2 The Committee shall meet at such times and places as it
determines. The Committee shall at all times operate and be governed, and Committee meetings shall be conducted and action taken, in accordance with the provisions of the Corporation’s bylaws or resolutions or policies adopted by the Board of
Directors from time to time regarding the operation of committees of the Corporation. 
 3.3 Except as set forth in Section 3.15
regarding grants of Awards by the Board of Directors, the Committee shall have sole authority in its absolute discretion: (i) to construe and interpret the Plan and Award Agreements; (ii) to define the terms used herein and in the Award
Agreements; (iii) to prescribe, amend, and rescind rules and regulations relating to the Plan and all Award Agreements; (iv) to determine the Eligible Individuals to whom Awards shall be granted or made available; (v) to determine the
time or times when all Awards shall be granted; (vi) to determine the price or prices at which Stock Options shall be granted; (vii) to determine the Option Period for each Stock Option and the Performance Period for each grant of
Performance Shares; (viii) to determine the number of shares to be subject to each Award; (ix) to determine the rate at which Awards may vest or otherwise become available; (x) to determine the rate at which Stock Options may be
exercised within the Option Period; (xi) to establish any Performance Objectives or other criteria that would affect in any way a Participant’s right to obtain or forfeit shares of Common Stock under the Plan; (xii) to interpret any
shareholder or stock restriction agreement insofar as it affects a Participant’s rights and obligations under the Plan; (xiii) to determine if a Participant has had a Termination of Service; (xiv) to determine if an Acceleration Event
has occurred; (xv) and to make any other determinations necessary or 
  

 6 

 advisable for the administration of the Plan and to do everything necessary or appropriate to administer the Plan. The
Committee’s determinations under this Article III need not be uniform and may be made by the Committee selectively among the persons who receive, or are eligible to receive, Awards under the Plan, whether or not such persons are similarly
situated. The records of the Corporation as to a Participant’s employment (or other provision of services), Termination of Service, leave of absence, compensation and related information shall be conclusive on all persons unless determined by
the Committee to be incorrect. All acts, determinations and decisions of the Committee made or taken pursuant to the Plan or with respect to any questions arising in connection with the administration and interpretation of the Plan or any Award
Agreement, including the severability of any and all of the provisions thereof; shall be conclusive, final and binding upon all Participants, Eligible Participants and their beneficiaries. No member of the Committee or member of the Board of
Directors shall be liable for any action or determination made in good faith with respect to the Plan or to any option granted thereunder. 
 3.4 The Committee may adopt such rules, regulations and procedures of general application for the administration of this Plan, as it deems appropriate. 
 3.5 Without limiting the provisions of this Article III, and subject to the provisions of Article X, the Committee is authorized to take such action as it determines to be necessary or advisable, and fair and
equitable to Participants and to the Corporation, with respect to an outstanding Award in the event of an Acceleration Event as described in Article X or other similar event. Such action may include, but shall not be limited to, establishing,
amending or waiving the form, terms, conditions and duration of an Award and the related Award Agreement, so as to provide for earlier, later, extended or additional times for exercise or payments, differing methods for calculating payments,
alternate forms and amounts of payment, an accelerated release of restrictions or other modifications. The Committee may take such actions pursuant to this Section 3.5 by adopting rules and regulations of general applicability to all
Participants or to certain categories of Participants, by including, amending or waiving terms and conditions in an Award and the related Award Agreement, or by taking action with respect to individual Participants from time to time. 
 3.6 Subject to the provisions of Section 3.11, the aggregate number of shares of Common Stock which may be issued pursuant to Awards under the Plan
shall not exceed the aggregate sum of (i) 1,199,550 shares of Common Stock, including 599,550 shares of Common Stock issuable but never made available under an Award under the Corporation’s Equity Compensation Plan (the “Prior
Plan”), and (ii) any shares of Common Stock which remain reserved for Awards under the Prior Plan but which may not be issued thereunder as a result of the termination or cancellation of an Award. 
 (a) All shares of Common stock under this Section 3.6 shall be made available from authorized and unissued shares of the
Corporation. 
 (b) For all purposes under the Plan, each Performance Share awarded shall be counted as one share of Common
Stock subject to an Award. 
 (c) If, for any reason, any shares of Common Stock (including shares of Common Stock subject to
Performance Shares) that have been awarded or are subject to 
  

 7 

 issuance or purchase pursuant to Awards outstanding under the Plan are not delivered or purchased, or are
reacquired by the Corporation, for any reason, including but not limited to a forfeiture of Restricted Stock or failure to earn Performance Shares or the termination, expiration or cancellation of a Stock Option, or any other termination of an Award
without payment being made in the form of shares of Common Stock (whether or not Restricted Stock), such shares of Common Stock shall not be charged against the aggregate number of shares of Common Stock available for Award under the Plan and shall
again be available for Awards under the Plan. In no event, however, may Common Stock that is surrendered or withheld to pay the exercise price of a Stock Option or to satisfy tax withholding requirements be available for future grants under the
Plan. 
 (d) The foregoing subsections (b) and (c) of this Section 3.6 shall be subject to any limitations
provided by the Code or by Rule 16b-3 under the Exchange Act or by any other applicable law, rule or regulation. 
 3.7 Each Award granted
under the Plan shall be evidenced by a written Award Agreement, which shall be subject to and shall incorporate (by reference or otherwise) the applicable terms and conditions of the Plan and shall include any other terms and conditions (not
inconsistent with the Plan) required by the Committee. In addition, the Committee shall require each recipient of an Award to execute a joinder to any shareholder or stock restriction agreement prior to final grant of the Award, which shall make
such recipient a shareholder party to such shareholder or stock restriction agreement and the shares of Common Stock or Option awarded subject to the restrictions therein. 
 3.8 The Corporation shall not be required to issue or deliver any certificates for shares of Common Stock under the Plan prior to: 
 (a) any required approval of the Plan by the shareholders of the Corporation; and 
 (b) the completion of any registration or qualification of such shares of Common Stock under any federal or state law, or any ruling or
regulation of any governmental body that the Corporation shall, in its sole discretion, determine to be necessary or advisable. 
 3.9 The
Committee may require any Participant acquiring shares of Common Stock pursuant to any Award under the Plan to represent to and agree with the Corporation in writing that such person is acquiring the shares of Common Stock for investment purposes
and without a view to resale or distribution thereof. Shares of Common Stock issued and delivered under the Plan shall also be subject to such stop-transfer orders and other restrictions as the Committee may deem advisable under the rules,
regulations and other requirements of the Securities and Exchange Commission, any stock exchange upon which the Common Stock is then listed and any applicable federal or state laws, and the Committee may cause a legend or legends to be placed on the
certificate or certificates representing any such shares to make appropriate reference to any such restrictions. In making such determination, the Committee may rely upon an opinion of counsel for the Corporation. 
  

 8 

 3.10 Except as otherwise expressly provided in the Plan or in an Award Agreement with respect to an
Award, no Participant shall have any right as a shareholder of the Corporation with respect to any shares of Common Stock subject to such Participant’s Award except to the extent that, and until, one or more certificates representing such
shares of Common Stock shall have been delivered to the Participant. No shares shall be required to be issued, and no certificates shall be required to be delivered, under the Plan unless and until all of the terms and conditions applicable to such
Award shall have, in the sole discretion of the Committee, been satisfied in full and any restrictions shall have lapsed in full, and unless and until all of the requirements of law and of all regulatory bodies having jurisdiction over the offer and
sale, or issuance and delivery, of the shares shall have been fully complied with. 
 3.11 The total amount of shares with respect to which
Awards may be granted under the Plan and the rights, terms and conditions of outstanding Awards and Award Agreements (both as to the number of shares subject to the outstanding Awards and the Option Price(s) or other purchase price(s) of such
shares, as applicable) shall be appropriately adjusted for any increase or decrease in the number of outstanding shares of Common Stock of the Corporation resulting from payment of a stock dividend on the Common Stock, a stock split or subdivision
or combination of shares of the Common Stock, a Corporate Reorganization, a reorganization or reclassification of the Common Stock, or any other change in the structure of shares of the Common Stock (including without limitation changing the class
of Common Stock that may be subject to an Award and which have not been issued or transferred under an outstanding Award), The foregoing adjustments and the manner of application of the foregoing provisions shall be determined by the Committee in
its sole discretion. Any such adjustment may provide for the elimination of any fractional shares that might otherwise become subject to an Award. All adjustments made as the result of the foregoing in respect of each Incentive Stock Option shall be
made so that such Incentive Stock Option shall continue to be an Incentive Stock Option, as defined in Section 422 of the Code. 
 3.12
In addition to such other rights of indemnification as they may have as directors or as members of the Committee, the members of the Committee shall be indemnified by the Corporation against reasonable expenses, including attorney’s fees,
actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in
connection with the Plan or any Award granted thereunder, and against all amounts paid by them in settlement thereof, provided such settlement is approved by independent legal counsel selected by the Corporation, or paid by them in satisfaction of a
judgment or settlement in any such action, suit or proceeding, except as to matters as to which the Committee member has been negligent or engaged in misconduct in the performance of his duties; provided, that within sixty (60) days after
institution of any such action, suit or proceeding, a Committee member shall in writing offer the Corporation the opportunity, at its own expense, to handle and defend the same. 
 3.13 The Committee shall be authorized to make adjustments in any performance based criterion or in the other terms and conditions of outstanding Awards
in recognition of unusual or nonrecurring events affecting the Corporation (or any Subsidiary, if applicable) or its financial statements or changes in applicable laws, regulations or accounting principles. The Committee may correct any defect,
supply any omission or reconcile any inconsistency in the 
  

 9 

 Plan or any Award Agreement in the manner and to the extent it shall deem necessary or desirable to reflect any such
adjustment. In the event the Corporation (or any Subsidiary, if applicable) shall assume outstanding employee benefit awards or the right or obligation to make future such awards in connection with the acquisition of another corporation or business
entity, the Committee may, in its sole discretion, make such adjustments in the terms of outstanding Awards under the Plan as it shall deem appropriate. 
 3.14 Subject to the express provisions of the Plan, the Committee shall have full power and authority to determine whether, to what extent and under what circumstances any outstanding Award shall be terminated,
canceled, forfeited or suspended. Notwithstanding the foregoing or any other provision of the Plan or an Award Agreement, all Awards to any Participant that are subject to any restriction or have not been earned or exercised in full by the
Participant shall be terminated and canceled if the Participant is terminated for Cause, as defined in section 2.4 herein. 
 3.15 In
addition to, and not in limitation of, the right of the Committee to grant Awards to Eligible Participants under this Plan, the full Board of Directors may from time to time grant Awards to Eligible Participants pursuant to the terms and conditions
of this Plan, subject to the requirements of the Code, Rule 16b-3 under the Exchange Act or any other applicable law, rule or regulation. In connection with any such grants, the Board of Directors shall have all of the power and authority of the
Committee to determine the Eligible Participants to whom such Awards shall be granted and the other terms and conditions of such Awards. 
 3.16 The Committee may specify that any shares of Common Stock acquired pursuant to an Award may be subject to the Corporation’s right to repurchase such shares, or a right of first refusal, and the Committee may require that the
Corporation consent to any transfer of such shares. The Committee, in its sole discretion, may specify the repurchase price of the shares in the Award Agreement. In no event may any shares of Common Stock acquired pursuant to an Award be transferred
or otherwise sold, except to the estate of the Participant, before such shares are Mature Shares. 
 3.17 In the event that the Corporation
has an Initial Public Offering, no participant may offer, sell, contract to sell, pledge, hypothocate, grant any option to purchase, or make any short sale of, or otherwise dispose of any shares of Common Stock or any rights to acquire such shares
of Common Stock for a period of time as may be established by the underwriter for such Initial Public Offering; provided, however, that such period of time shall not exceed one hundred eighty (180) days from the effective date of the
registration statement filed in connection with such Initial Public Offering. 
 3.18 Notwithstanding the provisions of Section 3.3
hereof, the Committee shall not make any Award to any person who has not signed agreements with the Committee, in the form then in use by the Corporation, with regard to confidentiality, noncompetition, noninterference and investors. 
  

 10 

 ARTICLE IV. INCENTIVE STOCK OPTIONS 
 4.1 The Committee, in its sole discretion, may from time to time on or after the Effective Date grant Incentive Stock Options to Eligible Participants,
subject to the provisions of this Article IV and Articles III and VI and subject to the following conditions: 
 (a) Incentive
Stock Options shall be granted only to Eligible Participants, each of whom may be granted one or more of such Incentive Stock Options at such time. or times determined by the Committee; provided, however, that Incentive Stock Options shall be
granted only to an Eligible Participants who, at the time of the Grant Date, does not own stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Corporation. 
 (b) The Option Price per share of Common Stock for an Incentive Stock Option shall be set in the Award Agreement, but shall not be less
than one hundred percent (100%) of the Fair Market Value of the Common Stock at the Grant Date. 
 (c) An Incentive Stock
Option may be exercised in full or in part from lime to time within ten (10) years from the Grant Date, or such shorter period as may be specified by the Committee as the Option Period and set forth in the Award Agreement; provided, however,
that, in any event, the Incentive Stock Option shall lapse and cease to be exercisable upon a Termination of Service or within such period following a Termination of Service as shall have been determined by the Committee and set forth in the related
Award Agreement; and provided, further, that such period following a Termination of Service shall not exceed three (3) months unless employment shall have terminated: 
 (i) as a result of Disability, in which event such period shall not exceed one year after the date of Disability; or 
 (ii) as a result of death, or if death shall have occurred following a Termination of Service (other than as a result of Disability) and
during the period that the Incentive Stock Option was still exercisable, in which event such period may not exceed one year after the date of death; and 
 provided, further, that such period following a Termination of Service shall in no event extend beyond the original Option Period of the Incentive Stock Option. 
 (d) The aggregate Fair Market Value of the shares of Common Stock with respect to which any incentive stock options (whether under this
Plan or any other plan established by the Corporation) are first exercisable during any calendar year by any Eligible Participants shall not exceed one hundred thousand dollars ($100,000), determined based on the Fair Market Value(s) of such shares
as of their respective grant dates; provided, however, that to the extent permitted under Section 422 of the Code: 
 (i)
if the aggregate Fair Market Values of the shares of Common Stock with respect to which incentive stock options are first exercisable during any calendar year (whether such Incentive Stock Options are granted under this 
  

 11 

 Plan or any other plan established by the Corporation) exceeds one hundred thousand dollars ($100,000),
such excess shall be treated as a Nonqualified Stock Option; 
 (ii) if a Participant’s employment is terminated by
reason of death, Disability or Retirement and the portion of any incentive stock option that is otherwise exercisable during the post-termination period applied without regard to the one hundred thousand dollar ($100,000) limitation contained in
Section 422 of the Code is greater than the portion of such option that is immediately exercisable as an Incentive Stock Option during such post-termination period under Section 422, such excess shall be treated as a Nonqualified Stock
Option; and 
 (iii) if the exercise of an Incentive Stock Option is accelerated by reason of a Change of Control, any portion
of such Award that is not exercisable as an incentive stock option by reason of the one hundred thousand dollar ($100,000) limitation contained in Section 422 of the Code shall be treated as a Nonqualified Stock Option. 
 (e) No Incentive Stock Options may be granted more than ten (10) years from the Effective Date. 
 (f) The Award Agreement for each Incentive Stock Option shall provide that the Participant shall notify the Corporation if such
Participant sells or otherwise transfers any shares of Common Stock acquired upon exercise of the Incentive Stock Option within two (2) years of the Grant Date of such Incentive Stock Option or within one (1) year of the date such shares
were acquired upon the exercise of such Incentive Stock Option. 
 4.2 Subject to the limitations of Section 3.6, the maximum number of
shares of Common Stock subject to Incentive Stock Option Awards shall be the maximum number of shares available for Awards under the Plan. 
 4.3 The Committee may provide for any other terms and conditions which it determines should be imposed for an Incentive Stock Option to qualify under Section 422 of the Code, as well as any other terms and conditions not inconsistent
with this Article IV or Articles III or VI, as determined in its sole discretion and set forth in the Award Agreement for such Incentive Stock Option. 
 4.4 Each provision of this Article IV and of each Incentive Stock Option granted hereunder shall be construed in accordance with the provisions of Section 422 of the Code, and any provision hereof that cannot be
so construed shall be disregarded. 
 4.5 If the Award Agreement so provides, the Committee may require that all or part of the shares of
Common Stock to be issued upon the exercise of an Incentive Stock Option shall take the form of Restricted Stock, which shall be valued on the date of exercise, as determined by the Committee, on the basis of the Fair Market Value of such Restricted
Stock determined without regard to the deferral limitations and/or forfeiture restrictions involved. 
  

 12 

 ARTICLE V. NONQUALIFIED STOCK OPTIONS 
 5.1 The Committee, in its sole discretion, may from time to time on or after the Effective Date grant Nonqualified Stock Options to Eligible
Participants, subject to the provisions of this Article V and Articles III and VI and subject to the following conditions: 
 (a) Nonqualified Stock Options may be granted to any Eligible Participants, each of whom may be granted one or more of such Nonqualified Stock Options, at such time or times as may be determined by the Committee. 
 (b) The Option Price per share of Common Stock for a Nonqualified Stock Option shall be set in the Award Agreement and may be less than or
greater than one hundred percent (100%) of the Fair Market Value of the Common Stock at the Grant Date. 
 (c) A
Nonqualified Stock Option may be exercised in full or in part from time to time within the Option Period specified by the Committee and set forth in the Award Agreement; provided, however, that, in any event, the Nonqualified Stock Option shall
lapse and cease to be exercisable three (3) months following a Termination of Service, or within such period following a Termination of Service as shall have been determined by the Committee and set forth in the related Award Agreement.

 5.2 The Committee may provide for any other terms and conditions for a Nonqualified Stock Option not inconsistent with this Article V or
Articles III or VI, as determined in its sole discretion and set forth in the Award Agreement for such Nonqualified Stock Option. 
 ARTICLE VI. INCIDENTS OF STOCK OPTIONS 
 6.1 Each Stock Option shall be granted subject to such terms and conditions, if
any, not inconsistent with this Plan, as shall be determined by the Committee and set forth in the related Award Agreement, including any provisions which may be advisable to comply with applicable laws, regulations or rulings of any governmental
authority. 
 6.2 Unless otherwise provided in an Award Agreement, a Stock Option may be exercised only by (i) Participant’s
completion, execution and delivery to the Corporation of a notice of exercise and, if required by the Corporation, an “investment letter” as supplied by the Corporation (and confirming Participant’s representations and warranties in
the Award Agreement), including the representation that Participant is acquiring the Shares for investment only and not with a view to the resale or other distribution thereof, and (ii) the payment to the Corporation, of an amount equal to the
Option Price multiplied by the number of Shares being purchased as specified in Participant’s notice of exercise. Participant’s notice of exercise shall be given pursuant to Section 6.4 or in the manner specified in the Award
Agreement. Notwithstanding anything to the contrary in this Agreement, a Stock Option may be exercised only if compliance with all applicable federal and state securities laws can be effected. 
 6.3 Except as hereinafter described, a Stock Option shall not be transferable by the Participant other than by will or by the laws of descent and
distribution, and shall be exercisable 
  

 13 

 during the lifetime of the Participant only by the Participant or the Participant’s guardian or legal
representative. In the event of the death of a Participant, any unexercised Stock Options may be exercised to the extent otherwise provided herein or in such Participant’s Award Agreement by the executor or personal representative of such
Participant’s estate or by any person who acquired the right to exercise such Stock Options by bequest under the Participant’s will or by inheritance. 
 6.4 Shares of Common Stock purchased upon exercise of a Stock Option shall be paid for in such amounts, at such times and upon such terms as shall be determined by the Committee, subject to limitations set forth in
the Stock Option Award Agreement. The Committee may, in its sole discretion, permit the exercise of a Stock Option by payment in full of the Option price of said shares, and such payment shall be made at the time of the exercise of the Option
(i) in cash or by check payable to the order of the Corporation, (ii) if authorized by the Committee, by delivery of Mature Shares, and including, if the Optionee elects, Option Shares in an amount necessary to provide for any income tax
withholding (the amount to be withheld shall not exceed the statutory minimum Federal and State income and employment tax liability arising from the Option exercise transaction), (iii) if authorized by the Committee or if specified in the Stock
Option Agreement pursuant to which the Option is being exercised, by a full-recourse promissory note made by the Optionee in favor of the Corporation, upon the terms and conditions determined by the Committee and secured by the Option Shares issued
upon exercise and by the assets of the Optionee, complying with applicable law (including, without limitation, state corporate and federal margin requirements), or any combination thereof. Furthermore, if the Corporation has an Initial Public
Offering and is thereafter listed on a national securities exchange, the Committee may permit an Optionee to pay the exercise price by irrevocably authorizing a third party to sell shares of the Common Stock (or a sufficient portion of the shares)
acquired upon exercise of the Option, and remit to the Corporation a sufficient portion of the sale proceeds to pay the entire exercise price and any withholding resulting from such exercise. As soon as practicable after said notice and the Option
price have been received by the Corporation, the Corporation shall deliver to the Optionee a stock certificate registered in the Optionee’s name representing the Option Shares. Shares of Common Stock previously held by the Participant and
surrendered in payment of the Option Price of a Stock Option shall be valued for such purpose at the Fair Market Value thereof on the date the Stock Option is exercised. 
 6.5 No cash dividends shall be paid on shares of Common Stock subject to unexercised Stock Options. The Committee may provide, however, that a Participant to whom a Stock Option has been granted which is exercisable
in whole or in part at a future time for shares of Common Stock shall be entitled to receive an amount per share equal in value to the cash dividends, if any, paid per share on issued and outstanding Common Stock, as of the dividend record dates
occurring during the period between the date of the grant and the time each such share of Common Stock is delivered pursuant to exercise of such Stock Option. Such amounts (herein called “dividend equivalents”) may, in the discretion of
the Committee, be: 
 (a) paid in cash or Common Stock either from time to time prior to, or at the time of the delivery of
such Common Stock, or upon expiration of the Stock Option if it shall not have been fully exercised; or 
  

 14 

 (b) converted into contingently credited shares of Common Stock, with respect to which
dividend equivalents may accrue, in such manner, at such value, and deliverable at such time or times, as may be determined by the Committee. 
 Such Common
Stock, whether delivered or contingently credited, shall be charged against the limitations set forth in Section 3.6. 
 6.6 The
Committee may permit the voluntary surrender of all or a portion of any Stock Option granted under the Plan to be conditioned upon the granting to the Participant of a new Stock Option for the same or a different number of shares of Common Stock as
the Stock Option surrendered, or may require such voluntary surrender as a condition precedent to a grant of a new Stock Option to such Participant. Subject to the provisions of the Plan, such new Stock Option shall be exercisable at such Option
Price, during such Option Period and on such other terms and conditions as are specified by the Committee at the time the new Stock Option is granted. Upon surrender, the Stock Options surrendered shall be canceled and the shares of Common Stock
previously subject to them shall be available for the grant of other Stock Options. 
 6.7 The Committee may at any time offer to purchase a
Participant’s outstanding Stock Option for a payment equal to the value of such Stock Option payable in cash, shares of Common Stock or Restricted Stock or other property upon surrender of the Participant’s Stock Option, based on such
terms and conditions as the Committee shall establish and communicate to the Participant at the time that such offer is made. 
 6.8 The
Committee shall have the discretion, exercisable either at the time the Award is granted or at the time the Participant discontinues employment, to establish as a provision applicable to the exercise of one or more Stock Options that, during a
limited period of exercisability following a Termination of Service, the Stock Option may be exercised not only with respect to the number of shares of Common Stock for which it is exercisable at the time of the Termination of Service but also with
respect to one or more subsequent installments for which the Stock Option would have become exercisable had the Termination of Service not occurred. 
 ARTICLE VII. RESTRICTED STOCK 
 7.1 The Committee, in its sole discretion, may from time to time on or after the Effective
Date award shares of Restricted Stock to Eligible Participants as a reward for past service and an incentive for the performance of future services that will contribute materially to the successful operation of the Corporation and its Subsidiaries,
subject to the terms and conditions set forth in this Article VII. 
 7.2 The Committee shall determine the terms and conditions of any Award
of Restricted Stock, which shall be set forth in the related Award Agreement, including without limitation: 
 (a) the
purchase price, if any, to be paid for such Restricted Stock, which may be zero, subject to such minimum consideration as may be required by applicable law; 
  

 15 

 (b) the duration of the Restriction Period or Restriction Periods with respect to such
Restricted Stock and whether any events may accelerate or delay the end of such Restriction Period(s); 
 (c) the
circumstances upon which the restrictions or limitations shall lapse, and whether such restrictions or limitations shall lapse as to all shares of Restricted Stock at the end of the Restriction Period or as to a portion of the shares of Restricted
Stock in installments during the Restriction Period by means of one or more vesting schedules; 
 (d) whether such Restricted
Stock is subject to repurchase by the Corporation or to a right of first refusal at a predetermined price or if the Restricted Stock may be forfeited entirely under certain conditions; 
 (e) whether any Performance Objectives may apply to a Restriction Period to shorten or lengthen such period; and 
 (f) whether dividends and other distributions with respect to such Restricted Stock are to be paid currently to the Participant or
withheld by the Corporation for the account of the Participant. 
 7.3 Awards of Restricted Stock must be accepted within a period of sixty
(60) days after the Grant Date (or such shorter or longer period as the Committee may specify at the Grant Date) by executing an Award Agreement with respect to such Restricted Stock and tendering the purchase price, if any. A prospective
recipient of an Award of Restricted Stock shall not have any rights with respect to such Award, unless such recipient has executed an Award Agreement with respect to such Restricted Stock, has delivered a fully executed copy thereof to the Committee
and has otherwise complied with the applicable terms and conditions of such Award. 
 7.4 In the sole discretion of the Committee and as set
forth in the Award Agreement for an Award of Restricted Stock, all shares of Restricted Stock held by a Participant and still subject to restrictions shall be forfeited by the Participant upon the Participant’s Termination of Service and shall
be reacquired, cancelled and retired by the Corporation. Notwithstanding the foregoing, unless otherwise provided in an Award Agreement with respect to an Award of Restricted Stock, in the event of the death, Disability or Retirement of a
Participant during the Restriction Period, or in other cases of special circumstances (including hardship or other special circumstances of a Participant whose employment is involuntarily terminated), the Committee may elect to waive in whole or in
part any remaining restrictions with respect to all or any part of such Participant’s Restricted Stock, if it finds that a waiver would be appropriate. 
 7.5 Except as otherwise provided in this Article VII, no shares of Restricted Stock received by a Participant shall be sold, exchanged, transferred, pledged, hypothecated or otherwise disposed of during the
Restriction Period. 
 7.6 Upon an Award of Restricted Stock to a Participant, a certificate or certificates representing the shares of such
Restricted Stock will be issued to and registered in the name of the Participant. Unless otherwise determined by the Committee, such certificate or certificates will be held in custody by the Corporation until (i) the Restriction Period expires
and the restrictions or limitations lapse, in which case one or more certificates representing such shares 
  

 16 

 of Restricted Stock that do not bear a restrictive legend (other than any legend as required under applicable federal or
state securities laws) shall be delivered to the Participant, or (ii) a prior forfeiture by the Participant of the shares of Restricted Stock subject to such Restriction Period, in which case the Corporation shall cause such certificate or
certificates to be cancelled and the shares represented thereby to be retired, all as set forth in the Participant’s Award Agreement. It shall be a condition of an Award of Restricted Stock that the Participant deliver to the Corporation a
stock power endorsed in blank relating to the shares of Restricted Stock to be held in custody by the Corporation. 
 7.7 Except as provided
in this Article VII or in the related Award Agreement, a Participant receiving an Award of shares of Restricted Stock Award shall have, with respect to such shares, all rights of a shareholder of the Corporation, including the right to vote the
shares and the right to receive any distributions, unless and until such shares are otherwise forfeited by such Participant; provided, however, the Committee may require that any cash dividends with respect to such shares of Restricted Stock be
automatically reinvested in additional shares of Restricted Stock subject to the same restrictions as the underlying Award, or may require that cash dividends and other distributions on Restricted Stock be withheld by the Corporation or its
Subsidiaries for the account of the Participant. The Committee shall determine whether interest shall be paid on amounts withheld, the rate of any such interest, and the other terms applicable to such withheld amounts. 
 ARTICLE VIII. STOCK AWARDS 
 8.1 The
Committee, in its sole discretion, may from time to time on or after the Effective Date grant Stock Awards to Eligible Participants in payment of compensation that has been earned or as compensation to be earned, including without limitation
compensation awarded or earned concurrently with or prior to the grant of the Stock Award, subject to the terms and conditions set forth in this Article VIII. 
 8.2 For the purposes of this Plan, in determining the value of a Stock Award, all shares of Common Stock subject to such Stock Award shall be valued at not less than one hundred percent (100%) of the Fair Market
Value of such shares of Common Stock on the Grant Date of such Stock Award, regardless of when such shares of Common Stock are issued and certificates representing such shares are delivered to the Participant. 
 8.3 Unless otherwise determined by the Committee and set forth in the related Award Agreement, shares of Common Stock subject to a Stock Award will be
issued, and one or more certificates representing such shares will be delivered, to the Participant as soon as practicable following the Grant Date of such Stock Award. Upon the issuance of such shares and the delivery of one or more certificates
representing such shares to the Participant, such Participant shall be and become a shareholder of the Corporation fully entitled to receive dividends, to vote and to exercise all other rights of a shareholder of the Corporation. Notwithstanding any
other provision of this Plan, unless the Committee expressly provides otherwise with respect to a Stock Award, as set forth in the related Award Agreement, no Stock Award shall be deemed to be an outstanding Award for purposes of the Plan.

  

 17 

 ARTICLE IX. PERFORMANCE SHARES 
 9.1 The Committee, in its sole discretion, may from time to time on or after the Effective Date award Performance Shares to Eligible Participants as an
incentive for the performance of future services that will contribute materially to the successful operation of the Corporation and its Subsidiaries, subject to the terms and conditions set forth in this Article IX. 
 9.2 The Committee shall determine the terms and conditions of any Award of Performance Shares, which shall be set forth in the related Award Agreement,
including without limitation: 
 (a) the purchase price, if any, to be paid for such Performance Shares, which may be zero,
subject to such minimum consideration as may be required by applicable law; 
 (b) the Performance Period and/or Performance
Objectives applicable to such Awards; 
 (c) the number of Performance Shares that shall be paid to the Participant if the
applicable Performance Objectives are exceeded or met in whole or in part; and 
 (d) the form of settlement of a Performance
Share. 
 9.3 At any date, each Performance Share shall have a value equal to the Fair Market Value of a share of Common Stock. 

9.4 Performance Periods may overlap, and Participants may participate simultaneously with respect to Performance Shares for which different
Performance Periods are prescribed. 
 9.5 Performance Objectives may vary from Participant to Participant and between Awards and shall be
based upon such performance criteria or combination of factors as the Committee may deem appropriate, including, but not limited to, minimum earnings per share or return on equity. If during the course of a Performance Period there shall occur
significant events that the Committee expects to have a substantial effect on the applicable Performance Objectives during such period, the Committee may revise such Performance Objectives. 
 9.6 In the sole discretion of the Committee and as set forth in the Award Agreement for an Award of Performance Shares, all Performance Shares held by a
Participant and not earned shall be forfeited by the Participant upon the Participant’s Termination of Service. Notwithstanding the foregoing, unless otherwise provided in an Award Agreement with respect to an Award of Performance Shares, in
the event of the death, Disability or Retirement of a Participant during the applicable Performance Period, or in other cases of special circumstances (including hardship or other special circumstances of a Participant whose employment is
involuntarily terminated), the Committee may determine to make a payment in settlement of such Performance Shares at the end of the Performance Period, based upon the extent to which the Performance Objectives were satisfied at the end of such
period and pro rated for the portion of the Performance Period during which the Participant was employed by the Corporation or a 
  

 18 

 Subsidiary; provided, however, that the Committee may provide for an earlier payment in settlement of such Performance
Shares in such amount and under such terms and conditions as the Committee deems appropriate or desirable. 
 9.7 The settlement of a
Performance Share shall be made in cash, whole shares of Common Stock or a combination thereof and shall be made as soon as practicable after the end of the applicable Performance Period. Notwithstanding the foregoing, the Committee in its sole
discretion may allow a Participant to defer payment in settlement of Performance Shares on terms and conditions approved by the Committee and set forth in the related Award Agreement entered into in advance of the time of receipt or constructive
receipt of payment by the Participant. 
 9.8 Performance Shares shall not be transferable by the Participant. The Committee shall have the
authority to place additional restrictions on the Performance Shares including, but not limited to, restrictions on transfer of any shares of Common Stock that are delivered to a Participant in settlement of any Performance Shares. 
 ARTICLE X. ACCELERATION EVENTS 
 10.1
Unless otherwise provided in the Award Agreement with respect to a particular Award, upon the occurrence of an Acceleration Event all then outstanding Stock Options that are not fully vested and exercisable shall not become fully vested and
exercisable solely on account of the Acceleration Event. 
 10.2 Unless otherwise provided in any Award Agreement, upon the occurrence of an
Acceleration Event, the restrictions applicable to Awards of Restricted Stock or Stock Awards shall immediately lapse, in which case the Corporation shall remove all restrictive legends applicable to the certificates for such shares of Common Stock,
and deliver such certificates to the Participants in whose names they are registered. 
 10.3 Unless otherwise provided in any Award
Agreement or determined otherwise by the Committee, upon the occurrence of an Acceleration Event, the value-of all outstanding Stock Options, Restricted Stock and Stock Awards, in each case to the extent vested, shall be determined by the Committee
in its sole discretion and shall be cashed out on the basis of the “Change of Control Price” less any purchase price or exercise price under the Award. For the purposes of this Agreement, the “Change of Control Price” means the
price per share of any Change of Control or Corporate Reorganization, as determined in the sole discretion of the Committee. 
 10.4 The
committee may in its discretion include in any Award Agreement any other Acceleration Events as the Committee deems appropriate in its sole discretion. 
 ARTICLE XI. AMENDMENT AND TERMINATION 
 11.1 Subject to the provisions of Section 11.2, the
Board of Directors, upon recommendation of the Committee or otherwise, at any time and from time to time may amend or terminate the Plan as may be necessary or desirable to implement or discontinue the Plan or 
  

 19 

 any provision hereof. To the extent required by the Exchange Act or the Code, however, no amendment, without approval by
the Corporation’s shareholders, shall: 
 (a) materially alter the group of persons eligible to participate in the Plan;

 (b) except as provided in Section 3.6, increase the maximum number of shares of Common Stock that are available for
Awards under the Plan; 
 (c) extend the period during which Incentive Stock Option Awards may be granted beyond
January 31, 2011 (ten years from the Effective Date); or 
 (d) alter the class of individuals eligible to receive an
Incentive Stock Option or increase the limit or the value of shares of Common Stock for which an Eligible Participant may be granted an Incentive Stock Option. 
 (e) limit or restrict the powers of the Committee with respect to the administration of this Plan; 
 (f) materially increase the benefits accruing to Participants under this Plan; 
 (g) materially modify the requirements as to eligibility for participation in this Plan; or 
 (h) change any of the provisions of this Article X. 
 11.2 No amendment to or discontinuance of the Plan or any provision thereof by the Board of Directors or the shareholders of the Corporation shall, without the written consent of the Participant, adversely affect (in
the sole discretion of the Committee) any Award theretofore granted to such Participant under this Plan; provided, however, that the Committee retains the right and power to: 
 (a) annul any Award if the Participant is terminated for Cause as defined in section 2.4 herein; 
 (b) convert any outstanding Incentive Stock Option to a Nonqualified Stock Option; and 
 (c) provide for the forfeiture of shares of Common Stock or other gain under an Award as determined by the Committee for competing against
the Corporation. 
 11.3 If a Change of Control has occurred, no amendment or termination shall impair the rights of any person with respect
to an outstanding Award, as provided in Article X. 
 ARTICLE XII. MISCELLANEOUS PROVISIONS 
 12.1 Nothing in the Plan or any Award granted hereunder shall confer upon any Participant any right to continue in the employ of the Corporation or its
Subsidiaries or to serve as a Director or shall interfere in any way with the right of the Corporation or its Subsidiaries or 
  

 20 

 the shareholders of the Corporation, as applicable, to terminate the service of a Participant or to release or remove a
Director at any time. Unless specifically provided otherwise, no Award granted under the Plan shall be deemed salary or compensation for the purpose of computing benefits under any employee benefit plan or other arrangement of the Corporation or its
Subsidiaries for the benefit of their respective employees. No Participant shall have any claim to an Award until it is actually granted under the Plan and an Award Agreement has been executed and delivered to the Corporation. To the extent that any
person acquires a right to receive payments from the Corporation under the Plan, such right shall, except as otherwise provided by the Committee, be no greater than the right of an unsecured general creditor of the Corporation. All payments to be
made hereunder shall be paid from the general funds of the Corporation, and no special or separate fund shall be established and no segregation of assets shall be made to assure payment of such amounts, except as provided in Article VII with respect
to Restricted Stock and except as otherwise provided by the Committee. 
 12.2 The Plan and the grant of Awards shall be subject to all
applicable federal and state laws, rules, and regulations and to such approvals by any government or regulatory agency as may be required. Any provision herein relating to compliance with Rule 16b-3 under the Exchange Act shall not be applicable
with respect to participation in the Plan by Participants who are not subject to Section 16 of the Exchange Act. 
 12.3 The terms of
the Plan shall be binding upon the Corporation, its successors and assigns. 
 12.4 In the event that, at any time or from time to time, any
Shares are transferred to any party (other than the Corporation) pursuant to the provisions of Section 12.1 hereof or otherwise, the transferee shall take such Shares pursuant to all of the provisions, conditions and obligations of the Plan and
the Award Agreement (including, without limitation, the obligations to sell and transfer, and to offer to sell and transfer, such Shares), and, as a condition precedent to the transfer of such Shares, the transferee shall agree in writing, for and
on behalf of such transferee and such transferee’s successors and assigns, to be bound by all provisions of this Plan and the Award Agreement. 
 12.5 Neither a Stock Option nor any other type of equity-based compensation provided for hereunder shall be transferable. In addition to the transfer restriction contained herein, additional transfer restrictions shall apply to the extent
required by federal or state securities laws. If any Participant makes such a transfer in violation hereof, any obligation hereunder of the Corporation to such Participant shall terminate immediately. 
 12.6 This Plan and all actions taken hereunder shall be governed by the laws of the State of North Carolina. 
 12.7 Each Participant exercising an Award hereunder agrees to give the Committee prompt written notice of any election made by such Participant under
Section 83(b) of the Code, or any similar provision thereof. Any and all notices made pursuant to this Plan shall be in writing, and sent by hand delivery or by certified or registered mail (return receipt requested and first-class postage
prepaid), in the case of the Corporation, to its principal executive offices to the attention of the President, and, in the case of Participant, to Participant’s address as shown on the Corporation’s records. 
  

 21 

 12.8 If any provision of this Plan or an Award Agreement is or becomes or is deemed invalid, illegal or
unenforceable in any jurisdiction, or would disqualify the Plan or any Award Agreement under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to applicable laws, or if it cannot be construed
or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award Agreement, it shall be stricken, and the remainder of the Plan or the Award Agreement shall remain in full force and effect.

 12.9 The grant of an Award pursuant to this Plan shall not affect in any way the right or power of the Corporation or any of its
Subsidiaries to make adjustments, reclassification, reorganizations, or changes of its capital or business structure, or to merge or consolidate, or to dissolve, liquidate or sell, or to transfer all or part of its business or assets. 
 12.10 The Plan is not subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”) or qualified under
Section 401(a) of the Code. 
 12.11 If a Participant is required to pay to the Corporation an amount with respect to income and
employment tax withholding obligations in connection with (i) the exercise of a Nonqualified Stock Option, (ii) certain dispositions of Common Stock acquired upon the exercise of an Incentive Stock Option, or (iii) the receipt of
Common Stock pursuant to any other Award, then the issuance of Common Stock to such Participant shall not be made (or the transfer of shares by such Participant shall not be required to be effected, as applicable) unless such withholding tax or
other withholding liabilities shall have been satisfied in a manner acceptable to the Corporation. The Committee, in its sole discretion and subject to such rules as it may adopt, may permit the Participant to satisfy such obligation, in whole or in
part, by making an irrevocable election that a portion of the total Fair Market Value of the shares of Common Stock be paid in the form of cash in lieu of the issuance of Common Stock and that such cash payment be applied to the satisfaction of the
withholding obligations. The amount to be withheld shall not exceed the statutory minimum federal and state income and employment tax liability arising from the transfer of the Common Stock to the Participant. Notwithstanding any other provision of
the Plan, any election under this Section 12.10 is required to satisfy the applicable requirements of Rule 16b-3 under the Exchange Act. 
  

 22 

 Option Plan Amendment 
 July 2003 
 The Digital Optics Corporation Omnibus Stock Option and Award Plan
(the “Option Plan”) is hereby amended as follows: 
 By deleting the first paragraph of Section 3.6 of the Plan
and inserting, in lieu thereof, the following: 
 “Subject to the provisions of Section 3.11, the aggregate number
of shares of Common Stock which may be issued pursuant to Awards under the Plan shall not exceed the sum of (i) One Million Twenty-One Thousand Two Hundred and Thirty-One (1,021,231) shares and (ii) any shares of Common Stock which
remain reserved for Awards under the Digital Optics Corporation Equity Compensation Plan but which may not be issued thereunder as a result of the termination or cancellation of an Award after July 18, 2003.” 
  

 23

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]