Document:

Form of Employment Agreement for Creighton K. Early

 EXHIBIT 10.21 
  
 FORM OF EMPLOYMENT AGREEMENT FOR 
 CREIGHTON K. EARLY 
  
 This Employment Agreement
(“Agreement”) is made and entered into by and between DPAC Technologies Corp., a California corporation (the “Company”) and Creighton Early, an individual (“Executive”), effective as of the Effective Date as defined in
the Agreement and Plan of Reorganization dated April     , 2005 (“Merger Agreement”) among the Company, Quatech, Inc. and Acquisition Sub, as defined in the Merger Agreement. In consideration of the mutual
covenants and agreements set forth herein, receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  
 ARTICLE I 
 EMPLOYMENT 
  
 The Company hereby employs Executive and Executive accepts employment with the Company upon
the terms and conditions herein set forth. 
  
 1.
Employment. The Company hereby employs Executive, and Executive agrees to serve, as the Chairman of the Board of the Company, reporting to the Board of Directors of the Company, commencing on the Effective Date and thereafter during the term
of this Agreement. In the event the Effective Date does not occur and the Merger Agreement is terminated, this Agreement shall be null and void and of no force or effect whatsoever. Executive agrees to perform such usual and customary duties of such
office as may be delegated to Executive from time to time by the Board of Directors of the Company. Executive agrees to devote substantially Executive’s full business time and attention and best efforts to the affairs of the Company during the
term of this Agreement. 
  
 1.2 Term. The term of
employment of Executive hereunder will be for the period commencing on the date of this Agreement and ending on the earliest of: 
  
 (a) December 31, 2006; 
  
 (b) The date of termination of Executive’s employment in accordance with Article IV of this Agreement; or 
  
 (c) The date of Executive’s death. 
  
 ARTICLE II 
 COMPENSATION 
  
 1.2 Base Salary. Effective on and after the Effective Date and thereafter during the employment of Executive, the Company shall pay Executive a base salary at the rate of $180,000 per year. 
  
 2.2 Auto Allowance. Executive shall receive an automobile allowance of
$750 per month. 
  
 2.3 Annual Incentive Compensation
Program. Executive shall be eligible to participate in any and every annual incentive compensation program of the Company, at a level commensurate with other Company senior executives, as established by the Board of Directors of the Company from
time to time. 
  
 2.4 Reimbursement of Expenses. Executive
shall be entitled to receive prompt reimbursement of all reasonable expenses incurred by Executive in performing services hereunder, including all expenses of travel, mobile phones, business entertainment and living expenses while away from home on
business at the request of, or in the 

 
service of, the Company, provided that such expenses are incurred and accounted for in accordance with the policies and procedures established by the
Company. 
  
 2.5 Benefits. Executive shall be entitled to
participate in or be covered by, as the case may be, all health, insurance, pension, disability insurance, physical exam and other employee plans and benefits established by the Company (collectively referred to herein as the “Benefit
Plans”) on the same terms as are generally applicable to other senior executives of the Company, subject to meeting applicable eligibility requirements. 
  
 2.6 Vacations and Holidays. During Executive’s employment with the Company, Executive shall be entitled to an annual vacation leave at full
pay, such vacation to be four weeks in each year of the term hereof or such greater vacation benefits as may be provided for by the Company’s vacation policies applicable to senior executives, as established by the Board of Directors of the
Company from time to time. Executive shall be entitled to such holidays as are established by the Company for all employees. 
  
 ARTICLE III 
 NON-COMPETITION, CONFIDENTIALITY
AND NONDISCLOSURE 
  
 3.1 Confidentiality Agreement.
Concurrently with the execution of this Agreement, Executive will execute and deliver Company’s standard Employee Assignment of Inventions and Non-Disclosure Agreement, and be bound by the terms thereof. As a condition of Executive’s
employment hereof, Executive agrees that all references to “Company” in the Employee Invention and Non-Disclosure Agreement shall be deemed to include the Company as well as Quatech, Inc. and any other subsidiary, direct or indirect, of
the Company. 
  
 3.2 No Violation of Other Agreements.
Executive represents that Executive’s performance of all the terms of this Agreement and as an employee of the Company does not and will not breach any agreement to (i) not compete or interfere with the business of a former employer (which term
for purposes of this Section 3.3 shall also include persons, firms, corporations and other entities for which Executive has acted as an independent contractor or consultant), (ii) not solicit employees, customers or vendors of any former employer,
or (iii) keep in confidence proprietary information acquired by Executive in confidence or in trust prior to Executive’s employment with the Company. Executive represents and warrants to and covenants with the Company that Executive will not
bring to the Company any materials or documents of a former employer containing confidential or proprietary information that is not generally available to the public, unless Executive shall have obtained express written authorization from any such
former employer for their possession and use. 
  
 ARTICLE IV

 TERMINATION 
  
 4.1 Definitions. For purposes of this Article IV, the following definitions shall apply to the terms set forth below: 
  
 (a) Cause. “Cause” shall be defined as
follows: 
  
 (i) Executive’s conviction of,
or guilty plea to, any felony (whether or not involving the Company) which constitutes a crime of moral turpitude or which is punishable by imprisonment in a state or federal correctional facility; 
  
 (ii) Actions by Executive during the term of this Agreement
involving willful malfeasance or gross negligence in the performance of Executive’s duties hereunder; 
  
 (iii) Executive’s commission of an act of fraud, whether prior or subsequent to the date hereof, upon the Company; 

 (iv) Executive’s willful failure or refusal to perform Executive’s duties as
required by this Agreement; and 
  
 (v)
Executive’s willful violation of any reasonable rule or regulation of the Board of Directors applicable to all senior executives if such violation is not cured promptly following notice to Executive. 
  
 For purposes of items (i) through (v) above, a conviction or the commission
or omission of any act of Executive described therein shall not be deemed to constitute “Cause” unless a majority of the Board of Directors affirmatively votes to deem it to be material and to constitute “Cause” for purposes
hereof, following five (5) business days’ notice to Executive of a meeting of the Board of Directors and an open discussion and presentation by Executive explaining such conviction, act or omission. 
  
 (b) Good Reason. “Good Reason” shall mean
the relocation of Executive without Executive’s written consent. 
  
 4.2 Termination by Company. The Company may terminate Executive’s employment hereunder immediately for Cause. Subject to the other provisions contained in this Agreement, the Company may terminate this Agreement for any reason
other than Cause upon thirty (30) days’ written notice to Executive. 
  
 4.3 Termination by Executive. Executive may terminate this Agreement and Executive’s employment hereunder upon thirty (30) days’ written notice to the Company. 
  
 4.4 Benefits Received Upon Termination. 
  
 (a) If Executive’s employment is terminated by the
Company for Cause, or if this Agreement is terminated by Executive for any reason under circumstances not constituting Good Reason, then the Company shall pay Executive Executive’s Base Salary through the effective date of such termination plus
credit for any vacation earned but not taken. Thereafter, the Company shall have no further obligations to Executive under this Agreement; provided, however, that the Company will continue to honor any obligations that may have vested or been
accrued and not forfeited on termination pursuant to and under the existing Company Benefit Plans or any other agreements or arrangements applicable to Executive. 
  
 (b) If Executive’s employment is terminated by the Company without Cause or by Executive for Good
Reason the Company shall: 
  
 (i) pay Executive,
within two (2) business days following the date of termination, any unpaid portion of Executive’s Base Salary and Auto Allowance through the date of termination, plus an additional 30 days from the date of termination, in lieu of the required
notification period, plus credit for any vacation earned but not taken; and 
  
 (ii) as severance pay Executive’s Base Salary plus Auto Allowance in effect as of the date of termination, such payments to be made in accordance with the Company’s usual payroll periods for the twelve (12)
months immediately following the termination of employment under this Agreement, subject to withholding in accordance with the Company’s usual payroll practices; and 
  
 (iii) if Executive holds unvested restricted stock or unvested stock options, accelerate the vesting of all
of Executive’s stock or stock options at and from the date of Executive’s termination, so that all restrictions on restricted stock shall lapse immediately and all unvested stock options will vest immediately; and 

 (iv) if Executive holds unexercised stock options on the date of termination, amend the
options to permit all vested options, including those vested as a result of the preceding clause, to be exercised for two years from and after the date of Executive’s termination. 
  
 (c) Termination Because of Employee Death or Disability. Should Executive die or become disabled, as
defined under the written insurance policies and procedures that may from time to time be obtained by the Company and its employment policies, the Company, or its insurer, shall pay Executive or the personal representative thereof the amount of
twelve (12) months of Executive’s Base Salary, such payments to be made in accordance with the Company’s usual payroll periods for twelve (12) months following the termination of employment under this Agreement, subject to withholding in
accordance with the Company’s usual payroll practices, in addition to any other compensation under this Agreement. 
  
 4.5 Effect of Termination. Upon any termination of this Agreement, for any reason, Executive shall be deemed to have immediately resigned in all
capacities as an officer of the Company and as an officer or director of all subsidiaries of the Company, if applicable, without the giving of any notice or the taking of any other action; provided, however, that termination under this Agreement
shall not alter any rights of Executive expressly granted under any other written agreement approved and adopted by the Board of Directors of the Company. 
  
 ARTICLE V 
 ASSUMPTION OF OBLIGATIONS BY
SUCCESSOR TO COMPANY 
  
 5.1 Assumption of Obligations. The
Company will require any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company, to assume expressly, absolutely and unconditionally
and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession or assignment had taken place. Any failure of the Company to obtain such agreement prior to the
effectiveness of any such succession or assignment shall be a material breach of this Agreement. As used in this Agreement, “Company” shall mean the Company as herein before defined and any successor or assign to its business and/or assets
as aforesaid which executes and delivers the agreement provided for in this Article V or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of law. 
  
 5.2 Beneficial Interests. This Agreement shall inure to the benefit of
and be enforceable by Executive’s personal and legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If Executive should die while any amounts are still payable to him or her hereunder, all
such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to Executive’s personal representative, devisee, legatee, or other designee or, if there be no such designee, to Executive’s
estate. 
  
 ARTICLE VI 
 GENERAL PROVISIONS 
  
 6.1 Notice. For purposes of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by United States registered mail, return receipt requested, postage prepaid, as follows: 
  
 If to the Company: 
  
 DPAC Technologies Corp. 
 7321 Lincoln Way 
 Garden Grove, California 92841 
 Attention:
                                 
 Facsimile No. (714) 897-1772 

 With a Copy to: 
  
 The Yocca Law Firm, LLP 
 19900 MacArthur Blvd., Suite 650 
 Irvine, California 92612 
 Attention: Nicholas J. Yocca 
 Facsimile No. (949) 253-0870 
  
 If to Executive: 
  
 Creighton Early 

7321 Lincoln Way 
 Garden Grove, California 92841 
 Attention:
                                 
 Facsimile No. (714) 897-1772 
  
 or such other address as either party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt. 
  
 6.2 No Waivers. No provision of this Agreement may be modified, waived
or discharged unless such waiver, modification or discharge is agreed to specifically in a writing signed by Executive and the Company. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any
condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. 
  
 6.3 Governing Law. This Agreement shall be governed by and construed
in accordance with the laws of the State of California. 
  
 6.4
Severability or Partial Invalidity. The invalidity or unenforceability of any provisions of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.

  
 6.5 Counterparts. This Agreement may be executed in one
or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument. 
  
 6.6 Legal Fees and Expenses. Should any party institute any action or proceeding to enforce this Agreement or any provision hereof, or for damages
by reason of any alleged breach of this Agreement or of any provision hereof, or for a declaration of rights hereunder, the prevailing party in any such action or proceeding shall be entitled to receive from the other party all costs and expenses,
including reasonable attorneys’ fees, incurred by the prevailing party in connection with such action or proceeding. 
  
 6.7 Entire Agreement. This Agreement constitutes the entire agreement of the parties and supersedes all prior written or oral and all
contemporaneous oral agreements, understandings and negotiations between the parties with respect to the subject matter hereof. This Agreement is intended by the parties as the final expression of their agreement with respect to such terms as are
included in this Agreement and may not be contradicted by evidence of any prior or contemporaneous agreement. The parties further intend that this Agreement constitutes the complete and exclusive statement of its terms and that no extrinsic evidence
may be introduced in any judicial proceeding involving this Agreement. 
  
 6.8 Assignment. This Agreement and the rights, duties and obligations hereunder may not be assigned or delegated by Executive without the prior written consent of 

 
the Company and any such attempted assignment and delegation shall be void and be of no effect. The Company may assign or delegate its rights, duties and
obligations hereunder to any person or entity; provided that such person or entity assumes the Company’s obligations under this Agreement in accordance with Section 5.1. 
  
 6.9 Indemnification. To the extent permitted by law, applicable statutes and the Articles of Incorporation, Bylaws or
resolutions of the Company in effect from time to time, the Company shall indemnify Executive against liability or loss arising out of Executive’s actual or asserted misfeasance or nonfeasance in the performance of Executive’s duties under
this Agreement or out of any actual or asserted wrongful act against or by the Company including but not limited to judgments, fines, settlements and expenses incurred in the defense of actions, proceedings and appeals therefrom. The Company shall
endeavor to obtain Directors and Officers’ Liability Insurance to indemnify and insure the Company and Executive from and against the aforesaid liabilities, subject to exclusions in the insurance contract. The provisions of this paragraph shall
apply to the estate, executor, administrator, heirs, legatees or devisees of Executive. 
  
 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. 
  

	
	 “Executive”

	
	 
	Creighton Early

  

			
	 “Company”

	
	 DPAC Technologies Corp.

		
	By:QuaTech, Inc. 2001 Equity Incentive Plan

 EXHIBIT 10.22 
  
 QUATECH, INC. 
 2001 Equity Incentive Plan 
  
 Article I – General

  
 1.01. Purpose. 
  
 The purposes of this 2001 Equity Incentive Plan (the “Plan”) are to: (1) closely associate the interests of
management of Quatech, Inc. (the “Company”) with the shareholders by reinforcing the relationship between participants’ rewards and shareholder gains; (2) provide directors and management with an equity ownership in the Company
commensurate with Company performance, as reflected in increased shareholder value; (3) maintain competitive compensation levels; and (4) provide an incentive to management for continuous employment with the Company. 
  
 1.02. Administration. 
  
 (a) The Plan shall he administered by the Board of Directors of the Company and/or a duly appointed committee of the Board
of Directors, each member of which shall be a disinterested person (within the meaning of Rule 16b-3 under the Securities Exchange Act of 1934) (the “Board”), as constituted from time to time. 
  
 (b) The Board shall have the authority, in its sole discretion and from time
to time to: 
  
 (i) designate the individuals
eligible to participate in the Plan; 
  
 (ii)
grant awards provided in the Plan in such form and amount as the Board shall determine; 
  
 (iii) impose such limitations, restrictions and conditions upon any such award as the Board shall deem appropriate; and 
  
 (iv) interpret the Plan, adopt, amend and rescind rules and
regulations relating to the Plan, and make all other determinations and take all other action necessary or advisable for the implementation and administration of the Plan. 
  
 (c) Decisions and determinations of the Board on all matters relating to the Plan shall he in its sole discretion and shall
be conclusive. No member of the Board shall be liable for any action taken or decision made in good faith relating to the Plan or any award thereunder. 
  
 1.03. Eligibility for Participation. 
  
 Participants in the Plan shall he selected by the Board from the directors, executive officers and other key employees of the Company who occupy
responsible positions and who have the capability of making a substantial contribution to the success of the Company. In making this selection and in determining the form and amount of awards, the Board shall consider any factors deemed relevant,
including the individual’s functions, responsibilities, value of services to the Company and past and potential contributions to the Company’s profitability and sound growth. 
  
 1.04. Aggregate Limitation on Awards; Stock Subject to Plan. 
  
 Shares of stock which may be issued under the Plan shall be authorized and unissued or treasury shares of Common Stock of
the Company (“Common Stock”). The 

 
maximum number of shares of Common Stock which may be issued under the Plan may not exceed ten percent (1 0%) of the total shares of Common Stock issued and
outstanding at the date hereof, subject to adjustment upon occurrence of any of the events indicated in Subsection 4.01. The Board has currently set aside a total of One Hundred Twenty Eight Thousand, Four Hundred Eighty Eight (128,488)
shares that may be issued under the Plan. The shares to be delivered under the Plan may consist, in whole or in part, of authorized but unissued Common Stock or issued stock reacquired and held as treasury stock not reserved for any other purpose.
In the event any shares of Common Stock that are subject to an option which, for any reason, expires or is terminated unexercised as to such shares, or any shares of Common Stock subject to an option are reacquired by the Company pursuant to the
Plan, such shares again shall become available for issuance under the Plan. 
  
 1.05. Effective Date of Plan. 
  
 The Plan shall become
effective on January 1,2001, and shall terminate on the tenth (10th) anniversary of the effective date (“Termination Date”). 
  
 Article II – Incentive Stock Options 
  
 2.01. Award of Incentive Stock Options. 
  
 The Board may, from time to time and subject to the provisions of the Plan and such other terms and conditions as the Board may prescribe, grant to any
participant in the Plan one or more “incentive stock options” (intended to qualify as such under the provisions of Section 422 of the Internal Revenue Code of 1986, as amended (“Incentive Stock Options”) to purchase for cash or
shares the number of shares of Common Stock allotted by the Board. The date the Incentive Stock Option is granted shall mean the date selected by the Board as of which the Board allots a specific number of shares to a participant pursuant to the
Plan. 
  
 2.02. Incentive Stock Option Agreements. 
  
 The grant of an Incentive Stock Option shall be evidenced by a written
Incentive Stock Option Agreement, executed by the Company and the holder of an Incentive Stock Option (the “Grantee”), stating the number of shares of Common Stock subject to the Incentive Stock Option evidenced thereby (“Option
Shares”), and in such form as the Board may from time to time determine. 
  
 2.03. Incentive Stock Option Price. 
  
 The purchase
price per share of Common Stock deliverable upon the exercise of an Incentive Stock Option shall be 100% of the fair market value of a share of Common Stock on the date the Incentive Stock Option is granted, taking into account the minority nature
of the Option Shares and the restrictions thereon; provided, however, that in the case of an Option granted to a participant who, at the time such Option is granted, owns Common Stock of the Company or any subsidiary corporation of the Company
possessing more than 10 percent of the total combined voting power of all classes of stock of the Company or of any subsidiary corporation, the purchase price for each share of Common Stock shall be such amount as the Board shall, in its best
judgment, determine to be not less than 110 percent of the fair market value per share at the date the Option is granted. 
  
 2.04. Installment Exercise. 
  
 Subject to such further limitations as are provided herein, the Option shall become exercisable immediately upon the grant thereof, the Grantee having the
right hereunder to purchase from the Company any or all of the granted Option Shares upon exercise of the Option. 

 2.05. Maximum Amount of Incentive Stock Option Grant. 
  
 The aggregate fair market value (determined on the date the option is granted) of Common Stock of which incentive stock
options are first exercisable by any individual in a particular calendar year shall not exceed $100,000. 
  
 2.06. Termination of Option. 
  
 (a) The Option and all rights hereunder with respect thereto, to the extent such rights shall not have been exercised, shall terminate and become null and void after the expiration of ten (10) years from the Date of Grant (the “Option
Term”); provided, however, that in the case of an Option granted to a participant who, at the time such Option is granted, owns Common Stock of the Company or any subsidiary corporation of the Company possessing more than 10 percent of the
total combined voting power of all classes of stock of the Company or of any subsidiary corporation, the Option Term shall be five (5) years from the Date of Grant. 
  
 (b) If the Grantee ceases to be an employee of the Company by reason of “termination for cause,” as defined in
Grantee’s Incentive Stock Option agreement, the Option, to the extent not previously exercised, shall terminate and become null and void immediately upon such termination of the Grantee’s employment. 
  
 (c) If the Grantee ceases to be an employee of the Company by reason of death
or disability within the meaning of Section 22(e)(3) of the Code, the Option, to the extent unexercised by the Grantee, may be exercised by the Grantee (or the Grantee’s legal representative) at any time prior to the expiration of one (1) year
from the date on which the Grantee’s employment terminated, but in no event later than the Option Term. 
  
 (d) If the Grantee ceases to be an employee of the Company for any reason, except death, disability within the meaning of Section 22(e)(3) of the Code or
“termination for cause,” as defined in paragraph 2.06(b) above, the Option, to the extent unexercised and exercisable by the Grantee on the date on which the Grantee ceased to be an employee, may be exercised by the Grantee within ninety
(90) days after the date on which the Grantee’s employment terminated, but in any event no later than the Option Term. 
  
 (e) Upon a termination of the Grantee’s director status or employment for any or no reason other than by death, the Option Shares then owned by
Grantee, to the extent the Option was previously exercised by Grantee, shall be subject to a right of repurchase by the Company at the fair market value of such shares as of the repurchase date, as determined by the Company’s Board in good
faith in its discretion. To exercise this repurchase right, the Company shall give Grantee when notice of its intent to so exercise within sixty (60) days of the date of termination of employment, and the closing of the repurchase shall occur within
sixty (60) days of the date of termination of employment. 
  
 Article III – Exercise of Options 
  

	3.01.	Exercise Generally. 

  
 Options granted under the Plan shall be exercisable at such times and be subject to such restrictions and conditions, including vesting rights and
schedules, as the Board shall in each instance approve, which need not be the same for all participants. 
  
 3.02. Notice of Exercise. 
  
 The
Grantee may exercise the Option with respect to all or any part of the number of Option Shares then exercisable hereunder by giving the Secretary of the Company written notice of intent to exercise. The notice of exercise shall specify the number of
Option Shares as to which the Option is to be exercised and the date of 

 
exercise thereof, which date shall he at least five days after the giving of such notice unless an earlier time shall have been mutually agreed upon.

  
 3.03. Closing of Exercise. 
  
 Full payment (in US. dollars) by the Grantee of the option price for the
Option Shares purchased shall be made on or before the exercise date specified in the notice of exercise in cash, or, with the prior written consent of the Board, in whole or in part through the surrender of previously acquired shares of Common
Stock at their fair market value on the exercise date. 
  
 On the
exercise date specified in the Grantee’s notice or as soon thereafter as is practicable, the Company shall cause to be delivered to the Grantee, a certificate or certificates for the Option Shares then being purchased (out of theretofore
unissued Common Stock or reacquired Common Stock, as the Company may elect) upon full payment for such Option Shares. The obligation of the Company to deliver Common Stock shall, however, be subject to the condition that if at any time the Board
shall determine in its discretion that the listing, registration or qualification of the Option or the Option Shares upon any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory body, is
necessary or desirable as a condition of, or in connection with, the Option or the issuance or purchase of Common Stock thereunder, the Option may not be exercised in whole or in part unless such listing, registration, qualification, consent or
approval shall have been effected or obtained free of any conditions not acceptable to the Board. 
  
 The Company may endorse such legend or legends upon the certificates for shares of Common Stock issued upon exercise of an Option granted hereunder and
may issue such “stop transfer” instructions to its transfer agent in respect of such shares as, in its discretion, it determines to he necessary or appropriate to (i) prevent a violation of, or to perfect an exemption from, the
registration requirements of the Securities Act of 1933, (ii) implement the provisions of the Plan and any agreement between the Company and the Optionee with respect to such shares, or (iii) permit the Company to determine the occurrence of a
disqualifying disposition, within the meaning of Section 421(b) of the Code, of shares transferred upon exercise of an incentive stock option granted under the Plan. 
  
 3.04. Termination for Failure to Close Exercise. 
  

If the Grantee fails to pay for any of the Option Shares specified in such notice or fails to accept delivery thereof, the Grantee’s right to
purchase such Option Shares may be terminated by the Company. The date specified in the Grantee’s notice as the date of exercise shall be deemed the date of exercise of the Option, provided that payment in full for the Option Shares to be
purchased upon such exercise shall have been received by such date. 
  
 Article IV – Miscellaneous 
  

	4.01.	Adjustment of and Changes in Stock of the Company. 

  
 In the event of a reorganization, recapitalization, change of shares, stock split, spin-off, stock dividend, reclassification, subdivision or combination
of shares, merger, consolidation, rights offering, or any other change in the corporate structure or shares of capital stock of the Company, the Board shall make such adjustment as it deems appropriate in the number and kind of shares of Common
Stock subject to the Option or in the option price such that each Option shall thereafter be exercisable for such securities, cash and or other property as would have been received in respect of the shares of Common Stock subject to such Option had
such Option been exercised in full immediately prior to such change, and such an adjustment shall be made successively each time any such change shall occur; provided, however, that no such adjustment shall give the Grantee any additional 

 
benefits under the Option, and no adjustment shall be made which would render any Option granted hereunder other than “incentive stock option” for
purposes of Section 422 of the Internal Revenue Code. 
  
 4.02. Fair Market Value.

  
 As used herein, “fair market value” of a share of
Common Stock shall be determined by the Board in good faith at its discretion. 
  
 4.03. No Rights of Stockholders. 
  
 Neither the Grantee
nor any personal representative shall be, or shall have any of the rights and privileges of, a stockholder of the Company with respect to any shares of Common Stock purchasable or issuable upon the exercise of the Option, in whole or in part, prior
to the date of exercise of the Option. 
  
 4.04. Non-Transferability of Option.

  
 During the Grantee’s lifetime, the Option hereunder
shall be exercisable only by the Grantee or any guardian or legal representative of the Grantee, and the Option shall not be transferable except, in case of the death of the Grantee, by will or the laws of descent and distribution, nor shall the
Option be subject to attachment, execution or other similar process. In the event of (a) any attempt by the Grantee to alienate, assign, pledge, hypothecate or otherwise dispose of the Option, except as provided for herein, or (b) the levy of any
attachment, execution or similar process upon the rights or interest hereby conferred, the Company may terminate the Option by notice to the Grantee and it shall thereupon become null and void. 
  
 4.05. Notice. 
  
 Any notice to the Company provided for in this instrument shall be addressed to it in case of its Secretary at its executive
offices at 662 Wolf Ledges Parkway, Akron, OH 44311, and any notice to the Grantee shall be addressed to the Grantee at the current address shown on the payroll records of the Employer. Any notice shall be deemed to be duly given if and when
properly addressed and posted by registered or certified mail, postage prepaid. 
  
 4.06. Termination or Suspension of the Plan. 
  
 The
Board of Directors may at any time and for any or no reason suspend or terminate the Plan. The Plan, unless sooner terminated by action of the Board of Directors, shall terminate at the close of business on the Termination Date. An Option may not be
granted while the Plan is suspended or after it is terminated. Options granted while the Plan is in effect shall not be altered or impaired by suspension or termination of the Plan, except upon the consent of the person to whom the Option is
granted. The power of the Board to construe and administer any Options granted prior to the termination or suspension of the Plan shall continue after such termination or such suspension. 
  
 4.07. Amendment of Plan. 
  
 The Plan may be amended by the Board at any time (i) if the Board determines, in its sole discretion, that amendment is necessary or advisable in the
light of any addition to or change in the Internal Revenue Code of 1986 or in the regulations issued thereunder, or any federal or state securities law or other law or regulation, which change occurs after the Date of Grant and by its terms applies
to the Option; or (ii) other than in the circumstances described in clause (i), with the consent of the Grantee, provided that, notwithstanding anything to the contrary herein, no amendment shall be made, without the approval of the shareholders of
the Company, that will (i) increase the total number of shares reserved for Options under the Plan (other than an increase resulting from an adjustment provided for in Section 4.01), 

 
(ii) reduce the exercise price of any Option granted hereunder below the price required by Section 2.03, (iii) modify the provisions of the Plan relating to
eligibility, or (iv) materially increase the benefits accruing to participants under the Plan. The rights and obligations under any Option granted before amendment of the Plan or any unexercised portion of such Option shall not be adversely affected
by amendment of the Plan or the Option without the consent of the holder of the Option. 
  
 4.08. Governing Law. 
  
 The validity, construction,
interpretation and effect of this instrument shall exclusively be governed by and determined in accordance with the law of the State of Ohio, except to the extent preempted by federal law, which shall to the extent govern.

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