Document:

Bolt Technology Corporation 2006 Stock Option Plan

 Exhibit 4.3 
  

BOLT TECHNOLOGY CORPORATION 
 2006
STOCK OPTION PLAN 
  

	1.	Purpose. The purpose of the Bolt Technology Corporation 2006 Stock Option Plan (the “Plan”) is to recognize the contributions made by Employees and Directors of
Bolt Technology Corporation (the “Company”) or a Subsidiary and to provide such persons with an additional incentive to use maximum efforts for the future success of the Company and any Subsidiary and to enhance the ability of the Company
or a Subsidiary to attract, retain and motivate individuals upon whom the Company’s sustained growth and financial success depend by providing such persons with an opportunity to acquire or increase their proprietary interest in the Company
through receipt of rights to acquire Common Stock. 

  

	2.	Definitions. As used in the Plan, the following definitions shall apply to the capitalized terms indicated below: 

  
 “Board” or “Board of Directors” means the
Board of Directors of the Company duly elected by the shareholders of the Company. 
  
 “Change of Control” means the earliest to occur of any of the following events: (i) the shareholders of the Company (or the Board of Directors, if shareholder action is not required) approve a
sale or other disposition of all or substantially all of the assets of the Company, other than to a Subsidiary; (ii) the shareholders of the Company (or the Board of Directors, if shareholder action is not required) approve a merger, plan of
reorganization, consolidation or share exchange with any other entity, and immediately following such a transaction the holders of the voting securities of the Company or such surviving entity immediately prior to such transaction hold securities
representing fifty percent (50%) or less of the combined voting power of the voting securities of the Company or such surviving entity immediately after such transaction; or (iii) the date any entity, person or group, within the meaning of
Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, as amended, other than the Company or any of its Subsidiaries or any employee benefit plan (or related trust) sponsored or maintained by the Company or any of its Subsidiaries shall
have become the beneficial owner of, or shall have obtained voting control over, more than fifty percent (50%) of the outstanding Shares of the Company’s Common Stock; provided, however, that as to any award under the Plan that consists of
deferred compensation subject to Section 409A of the Code, the definition of “Change of Control” shall be deemed modified to the extent necessary to comply with Section 409A of the Code. 
  
 “Code” means the Internal Revenue Code of 1986, as amended.

  
 “Committee” means the Board of Directors, or
a committee of the Board of Directors appointed in accordance with Section 3 of the Plan, when acting in connection with the administration of the Plan. 
  

“Common Stock” means the common stock, no par value, of the Company. 
  
 “Company” means Bolt Technology Corporation, a Connecticut corporation. 
  
 “Continuous Service” means that the Optionee’s service
with the Company or a Subsidiary, whether as an Employee or Director, is not interrupted or terminated. The Optionee’s Continuous Service shall not be 

 
deemed to have terminated merely because of a change in the capacity in which the Optionee renders service to the Company or a Subsidiary as an Employee or
Director or a change in the entity for which the Optionee renders such service, provided that there is no interruption or termination of the Optionee’s Continuous Service. For example, a change in status from an Employee of the Company to a
Director will not constitute an interruption of Continuous Service. Notwithstanding the foregoing, an Optionee’s Continuous Service shall be deemed to have terminated with respect to all Incentive Stock Options granted to such Optionee on such
date as such Optionee’s Continuous Service as an Employee terminates. To the extent permitted by law and any leave of absence policy of the Company, the Committee or the chief executive officer of the Company, in that party’s sole
discretion, may determine whether Continuous Service shall be considered interrupted in the case of any leave of absence approved by that party, including sick leave, military leave or any other personal leave; provided, however, an Optionee’s
Continuous Service shall not be deemed to have been terminated because of an approved leave of absence from active service with the Company or a Subsidiary on account of temporary illness, authorized vacation, or granted for reasons of professional
advancement, education, health, or government service, or during military leave for any period that is required by the Uniformed Services Employment and Reemployment Rights Act of 1994, as amended (“USERRA”) (if the Optionee returns to
active service with the Company or a Subsidiary within the period required by USSERA after termination of military leave), or during any period required to be treated as a leave of absence by virtue of any applicable and binding statute (such as the
Family and Medical Leave Act of 1993, as amended), personnel policy, or employment agreement. Whether an authorized leave of absence constitutes termination of Continuous Service hereunder shall be determined by the Committee. 
  
 “Director” means each member of the Board of Directors of
the Company. 
  
 “Disability” means (i) in
the case of an Optionee who receives a Nonqualified Stock Option and whose employment arrangement with the Company or a Subsidiary is subject to the terms of an employment agreement between such Optionee and the Company or Subsidiary, which
employment agreement includes a definition of “Disability,” the meaning set forth in such agreement for “Disability” during the period that agreement remains in effect; and (ii) in all other cases, the term
“Disability” as used in this Plan or any Option Document shall have the meaning set forth in Section 22(e)(3) of the Code. 
  
 “Employee” means any person, including officers, employed by the Company or a Subsidiary. However, service solely as a Director, or
payment of a fee for such service, shall not cause a Director to be considered an “Employee” for purposes of the Plan. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Fair Market Value” means, as of a particular date, the value of the Common Stock determined as follows:
(i) if the Common Stock is traded in a public market, then the Fair Market Value per share shall be, (A) if the Common Stock is listed on a national securities exchange or included in the NASDAQ Stock Market, the last reported sale price
thereof on the relevant date (or if no Shares of Common Stock were traded on such date, the next preceding date on which the Common Stock was traded), or (B) if the Common Stock is not so listed or included, the average of the last reported
“bid” and “asked” prices thereof on the relevant date (or if no Shares of Common Stock were traded on such date, the next preceding date on which the Common Stock was traded) as reported on the OTC Bulletin Board, or the Fair
Market Value per share as determined by any other method adopted by the Committee from time to time as the Committee may deem appropriate or as may be required in order to comply with applicable laws and regulations; and (ii) at any 

  

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time at which the Common Stock is not traded in a public market, then the Fair Market Value per share shall be determined by the Board, acting in good faith,
and such determination shall be final and binding for all purposes of the Plan. 
  
 “Incentive Stock Option” or “ISO” means an Option that is intended to qualify as an “incentive stock option” within the meaning of Section 422 of the Code. 

 
 “Non-Employee Director” means a Director who either
(i) is not a current Employee or officer of the Company or a Subsidiary and does not receive compensation directly or indirectly from the Company or a Subsidiary for services rendered as a consultant or in any capacity other than as a Director,
or (ii) is otherwise considered a “non-employee director” for purposes of Rule 16b-3 promulgated under the Exchange Act. 
  
 “Nonqualified Stock Option” means an Option that is not intended to qualify, or otherwise does not qualify, as an “incentive stock
option” within the meaning of Section 422 of the Code. 
  
 “Option” means either an ISO or a Nonqualified Stock Option granted under the Plan. 
  
 “Option Document” means the document described in Section 7 of the Plan that sets forth the terms and conditions of an Option grant.
Each Option Document shall be subject to the terms and conditions of the Plan. 
  
 “Optionee” means a person to whom an Option has been granted under the Plan, which Option has not been exercised and has not expired or terminated, or if applicable, such other person who holds an
outstanding Option. 
  
 “Option Price” means the
price at which Shares may be purchased upon exercise of an Option determined in accordance with Section 7(b) of the Plan. 
  
 “Securities Act” means the Securities Act of 1933, as amended. 
  
 “Shares” means the shares of Common Stock of the Company that are the subject of Options. 
  
 “Subsidiary” means a corporation that is a subsidiary
corporation with respect to the Company within the meaning of Section 424(f) of the Code. 
  
 “Ten Percent Shareholder” means an Employee who owns (or is deemed to own pursuant to Section 424(d) of the Code) stock possessing
more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of a Subsidiary. 
  

	3.	Administration of the Plan. The Plan shall be administered by the Board; however, the Board may designate a committee composed of two or more Non-Employee Directors to
administer the Plan in its stead. Any such committee so designated by the Board to administer the Plan shall be constituted as necessary to comply with the legal requirements, if any, relating to the administration of the types of options granted
under the Plan imposed by applicable corporate and securities laws, the Code and any stock exchange or national market system upon which the Common Stock is then listed or traded. Notwithstanding anything to the contrary contained in this
Section 3, the Board shall constitute the Committee and administer the Plan with respect to Options granted to Non-Employee Directors. 

  

	 	(a)	Meetings. The Committee may hold meetings at such times and places as it may determine. Acts approved at a meeting by a majority of the members of the Committee or acts
approved in writing by the unanimous consent of the members of the Committee shall be the valid acts of the Committee. 

  

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	 	(b)	Powers of Committee. The Committee shall have the power, subject to the express provisions of the Plan: 

  

	 	(i)	To determine from time to time which of the eligible persons under the Plan shall be granted Options; when and how each Option shall be granted; what type or combinations of types
of Options shall be granted; the provisions of each Option granted, which need not be identical, including any terms of vesting of the Option and the price at which the Option shall be granted; and, the number of Shares subject to the Option.

  

	 	(ii)	To construe and interpret the Plan and Options granted under it, and to establish, amend and revoke rules and regulations for its administration. The Committee in the exercise of
this power, may correct any defect, omission or inconsistency in the Plan or in any Option Document in a manner and to the extent it shall deem necessary or expedient to make the Plan fully effective. 

  

	 	(iii)	Generally, to exercise such other powers and perform such acts as the Committee deems necessary or expedient to promote the best interests of the Company and that are not in
conflict with the provisions of the Plan or any Options. 

  

	 	(iv)	The Committee may delegate to officers or employees of the Company or a Subsidiary the authority, subject to such terms as the Committee may determine, to perform administrative
functions with respect to the Plan and Option Documents. 

  

	 	(c)	Exculpation. No member of the Committee shall be personally liable for monetary damages for any action taken or any failure to take any action in connection with the
administration of the Plan or the granting of Options under the Plan, provided that this Subsection 3(c) shall not apply to: (i) any breach of such member’s duty of loyalty to the Company or its shareholders; (ii) acts or
omissions not in good faith or involving intentional misconduct or a knowing violation of law; (iii) acts or omissions that would result in liability under the circumstances described in the exclusions contained in Section 33-636(b)(4) of
the Connecticut Stock Corporation Act, as amended; and (iv) any transaction from which the member derived an improper personal benefit. 

  

	 	(d)	Indemnification. Service on the Committee shall constitute service as a member of the Board of the Company. Each member of the Committee shall be entitled
without further action on such person’s part to indemnity from the Company to the fullest extent provided by applicable law and the Company’s Certificate of Incorporation and/or Bylaws in connection with or arising out of any action, suit
or proceeding with respect to the administration of the Plan or the granting of Options thereunder in which such person may be involved by reason of such person’s being or having been a member of the Committee, whether or not such person
continues to be a member of the Committee at the time of the action, suit or proceeding. 

  

	 	(e)	Effect of Committee Action. The Committee’s determinations under the Plan (including, without limitation, determinations of the persons to receive Options, the form,
amount and timing of such Options, the terms and provisions of such Options and the Option Documents evidencing same) shall be made in its discretion and need not be uniform and may be made by it selectively among persons who receive, or are
eligible to receive, Options under the Plan, whether or not such persons are similarly situated. All determinations and interpretations made by the Committee shall be final, binding and conclusive on all persons, including without limitation, all
Optionees and persons claiming rights from or through an Optionee. 

  

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	4.	Shares Subject to Plan. Subject to adjustment as provided in Section 9, the number of Shares that may be issued pursuant to Options shall not exceed, in
the aggregate, 500,000 Shares. The Shares shall be issued from authorized and unissued or reacquired Common Stock, including Shares repurchased by the Company. If an Option shall for any reason expire or otherwise terminate without having been
exercised in full for any reason, the Shares for which the Option was not exercised shall revert to, and may again become available for the grant of one or more Options under the Plan. No Options shall be granted under the Plan after June 30,
2016; provided, however, that all Options granted under the Plan prior to such date shall remain in effect until such Options have been exercised or terminated in accordance with the Plan and the terms of such Options. 

  

	5.	Eligibility. 

  

	 	(a)	Eligibility for Grant of Options. Nonqualified Stock Options shall be granted to Non-Employee Directors as set forth in Section 6, and may otherwise be granted to
Non-Employee Directors at the discretion of the Committee. Nonqualified Stock Options and/or ISOs (or a combination thereof) may be granted to Employees of the Company or its Subsidiaries, at the discretion of the Committee.

  

	 	(b)	Ten Percent Shareholders. A Ten Percent Shareholder shall not be granted an ISO unless the exercise price of such Option is at least 110% of the Fair Market Value of the
Common Stock on the date of grant, and the Option is not exercisable after the expiration of five (5) years from the date of grant. 

  

	 	(c)	Committee To Determine. The Committee, in its sole discretion, shall determine all questions of eligibility to receive Options under the Plan. 

  

	6.	Non-Employee Director Grants under the Plan. Notwithstanding any provision of the Plan to the contrary, each Non-Employee Director of the Company who was elected at the
Company’s Annual Meeting of Shareholders held in 2003, 2004 or 2005, shall be granted a Nonqualified Stock Option to purchase 3,000 Shares of Common Stock upon approval of the Plan by the shareholders of the Company. Each Non-Employee Director
of the Company who is elected by the shareholders of the Company at the Company’s Annual Meeting of Shareholders held in 2006 and in each year of election thereafter ending with the year 2015, shall be granted a Nonqualified Stock Option to
purchase 5,000 Shares of Common Stock on the date so elected to the Board. Each Option granted pursuant to this Section 6 shall have an Option Term of five (5) years from the date it is granted and shall be first exercisable as to
twenty-five percent (25%) of the Shares covered under the Option in each of years two through five of its term (each year commencing on the anniversary date of the grant). 

  

	7.	Option Documents and Terms. Each Option granted under the Plan shall be a Nonqualified Stock Option, unless the Option specifically shall be designated at the time of grant
to be an ISO. If any Option designated as an ISO is determined for any reason not to qualify as an incentive stock option within the meaning of Section 422 of the Code, such Option shall be treated as a Nonqualified Stock Option for all
purposes under the provisions of the Plan. Each Option granted pursuant to the Plan shall be evidenced by an Option Document in such form as the Committee shall from time to time approve, which Option Document shall comply with and be subject to the
following terms and conditions and such other terms and conditions as the Committee shall from time to time require that are not inconsistent with the terms of the Plan. 

  

	 	(a)	 Number of Option Shares. Each Option Document shall state the number of Shares to which it pertains. An Optionee may receive more than one Option and
the Options received may include 

  

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Options that are intended to be ISOs and Options that are not intended to be ISOs, but only on the terms, and subject to the conditions and restrictions, of
the Plan. 

  

	 	(b)	Option Price. Each Option Document shall state the Option Price applicable to the Option granted therein. Subject to the provisions of Section 5(b) with respect
to a Ten Percent Shareholder granted an ISO, the exercise price of any Option, whether a Nonqualified Stock Option or an ISO, shall in no event ever be less than 100% of the Fair Market Value of the Shares subject to the Option on the date the
Option is granted as determined by the Committee in accordance with this Section 7(b). Notwithstanding the foregoing, an Option may be granted with an exercise price lower than that set forth in the preceding sentence if such Option is granted
pursuant to an assumption or substitution for another option in a manner satisfying the provisions of Section 424(a) of the Code. 

  

	 	(c)	Exercise. No Option shall be exercisable during the year ending on the first anniversary date of the granting of the Option. No Option shall be deemed to have been exercised
prior to the receipt by the Company of written notice of such exercise and of payment in full of the Option price for the Shares to be purchased. Each such notice shall specify the number of Shares to be purchased and (unless the Shares are covered
by a then current registration statement or a notification under Regulation A under the Securities Act) shall contain the Optionee’s acknowledgment in form and substance satisfactory to the Company that: (i) such Shares are being purchased
for investment and not for distribution or resale (other than a distribution or resale which, in the opinion of counsel satisfactory to the Company, may be made without violating the registration provisions of the Securities Act); (ii) the
Optionee has been advised and understands that (A) the Shares have not been registered under the Securities Act and are “restricted securities” within the meaning of Rule 144 under the Securities Act and are subject to restrictions on
transfer, and (B) the Company is under no obligation to register the Shares under the Securities Act or to take any action which would make available to the Optionee any exemption from such registration; (iii) such Shares may not be
transferred without compliance with all applicable federal and state securities laws and any other restrictions contained in the Plan and the applicable Option Document; and (iv) an appropriate legend referring to the foregoing restrictions on
transfer and any other restrictions imposed under the Option Documents may be endorsed on the certificates. Notwithstanding the foregoing, if the Company determines that issuance of Shares should be delayed pending (1) registration under
federal or state securities laws, (2) the receipt of an opinion of counsel satisfactory to the Company that an appropriate exemption from such registration is available, (3) the listing or inclusion of the Shares on any securities exchange
or an automated quotation system, or (4) the consent or approval of any governmental regulatory body whose consent or approval is necessary in connection with the issuance of such Shares, the Company may defer exercise of any Option granted
hereunder until any of the events described in this sentence has occurred. 

  

	 	(d)	Medium of Payment. The purchase price of Common Stock acquired pursuant to the exercise of an Option shall be paid, to the extent permitted by applicable law and as
determined by the Committee in its sole discretion, by one or more of the following methods. The Committee shall have authority to grant Options that do not entitle the Optionee to use all methods or that require prior written consent of the Company
to use certain of the methods. The methods of payment of the Option price are: 

  

	 	(i)	cash or check payable in clearinghouse funds to the order of the Company; 

  

	 	(ii)	by delivery to the Company of other Shares of Common Stock which, unless otherwise determined by the Committee, have been held for more than six (6) months;

  

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	 	(iii)	by a “net exercise” arrangement pursuant to which the Company will reduce the number of Shares issued upon exercise by the largest whole number of the Shares with a Fair
Market Value that does not exceed the Option price; provided, however, that the Company shall accept cash or other payment from the Optionee to the extent of any remaining balance of the aggregate Option price not so satisfied,
provided further that the Shares will no longer be outstanding under an Option and will not be exercisable thereafter to the extent so applied or withheld to satisfy tax withholding obligations pursuant to Section 11 below; or

  

	 	(iv)	any other form of legal consideration that may be acceptable to the Committee. 

  

	 	(e)	Vesting. The total number of Shares subject to an Option may vest and therefore become exercisable in periodic installments that may or may not be equal. An Option may be
subject to such other terms and conditions on the time or times when it may be exercised (which may be based on the satisfaction of certain performance criteria) as the Committee may deem appropriate. The vesting provisions of individual Options may
vary. 

  

	 	(f)	Termination of Options. 

  

	 	(i)	No Option shall be exercisable after the first to occur of the following: 

  

	 	(A)	Expiration of the Option term specified in the Option Document, which expiration shall occur no later than (1) ten (10) years from the date of grant, or (2) five
(5) years from the date of grant of an ISO if the Optionee on the date of grant is a Ten Percent Shareholder; 

  

	 	(B)	Unless otherwise set forth in the Option Document, expiration of three (3) months from the date the Optionee’s Continuous Service terminates by reason of the
Optionee’s retirement or Disability; provided however, that if the Optionee dies within such three-month period, any unexercised Option, to the extent to which it was exercisable at the time of his death, shall thereafter be exercisable for a
period not exceeding fifteen (15) months from the date of his death; 

  

	 	(C)	Unless otherwise set forth in the Option Document, expiration of fifteen (15) months from the date Optionee’s Continuous Service terminates due to the Optionee’s
death; 

  

	 	(D)	Unless otherwise set forth in the Option Document or in (E) below with respect to Non-Employee Director Options, upon the termination date of the Optionee’s Continuous
Service in the event that the Optionee’s Continuous Service is terminated for any reason other than death, Disability or retirement; or 

  

	 	(E)	Notwithstanding (B) and (D) above, in the case of Options granted to Non-Employee Directors pursuant to Section 6 above, expiration of a period of thirty
(30) days from the date the Optionee’s Continuous Service terminates; provided however, that if the Non-Employee Director dies within such thirty (30) days, any unexercised Option, to the extent to which it was exercisable at the time
of his death, shall thereafter be exercisable for a period not exceeding fifteen (15) months from the date of his death; or 

  

	 	(F)	The date, if any, set by the Board of Directors or the Committee as an accelerated expiration date in the event of the liquidation or dissolution of the Company or a Change of
Control. 

  

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	 	(ii)	Notwithstanding the foregoing, if an Optionee’s employment terminates by death, Disability or retirement after the first anniversary date of the granting of the Option and
prior to an installment of his Option (other than the first installment) becoming exercisable and if there are no conditions to the next succeeding installment becoming exercisable other than the passage of time, his Option thereupon shall become
exercisable with respect to a number of Shares (in addition to Shares covered by installments theretofore matured) equal to a pro rata portion of the Shares for which it would become exercisable upon the maturity of the next succeeding installment,
such pro rata portion to be based upon the proportion which the number of full months in the period beginning with the maturity date of the next preceding installment and ending with such termination of his employment bears to the total number of
full months in the period beginning with the maturity date of the next preceding installment and ending with the maturity date of the next succeeding installment. 

  

	 	(iii)	Notwithstanding the foregoing, the Committee may extend the period during which all or any portion of an Option may be exercised to a date no later than the Option term specified in
the Option Document pursuant to Subsection 7(f)(i)(A), provided that any change pursuant to this Subsection 7(f)(iii) which would cause an ISO to become a Nonqualified Stock Option may be made only with the consent of the Optionee.

  

	 	(g)	Transferability of Options. Unless otherwise determined by the Committee with respect to a Nonqualified Stock Option, no Option granted under the Plan may be
transferred, except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of an Optionee only by the Optionee. Notwithstanding the foregoing, an Optionee may, by delivering written notice to the Company in
form satisfactory to the Company, designate a third party who, in the event of the Optionee’s death, shall thereafter be entitled to exercise the Option. 

  

	 	(h)	Limitation on ISO Grants. To the extent that the aggregate Fair Market Value of the Shares of Common Stock (determined at the time the ISO is granted) with respect to which
Incentive Stock Options are exercisable for the first time by an Optionee during any calendar year under all incentive stock option plans of the Company or its Subsidiaries in which such Optionee has been granted ISOs exceeds $100,000, the Options
or portions thereof that exceed such limit (according to the order in which they were granted) shall be treated as Nonqualified Stock Options, notwithstanding any contrary provision of the applicable Option Document. 

  

	 	(i)	Compliance with Section 409A of the Code. Notwithstanding anything to the contrary set forth herein, any Option shall contain such provisions such that such Option will
comply with the requirements of Section 409A of the Code. Such provisions, if any, shall be determined by the Committee and shall be set forth in the Option Document evidencing such Option. 

  

	 	(j)	Other Provisions. Subject to the provisions of the Plan, the Option Documents shall contain such other provisions including, without limitation, additional restrictions upon
the exercise of the Option or additional limitations upon the term of the Option, as the Committee shall deem advisable. 

  

	 	(k)	Amendment. Subject to the provisions of the Plan, the Committee shall have the right to amend Option Documents issued to an Optionee, subject to the Optionee’s consent
if such amendment is not favorable to the Optionee, except that the consent of the Optionee shall not be required for any amendment made pursuant to Subsection 7(f)(i)(F) or Sections 8 and 9 of the Plan, as applicable.

  

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	8.	Change of Control. Unless otherwise provided in an applicable Option Document, immediately following the consummation of a Change of Control, all outstanding Options shall
terminate and cease to be outstanding, except to the extent assumed by a successor corporation (or parent thereof) or otherwise expressly continued in full force and effect pursuant to the terms of any agreement governing a Change of Control. If
Options terminate and are not assumed in connection with a Change of Control, all holders of such Options shall receive the same consideration that shareholders receive upon such Change of Control to the extent that such Options are vested
immediately prior to such Change of Control reduced by the Option price such Optionee would have had to pay upon the exercise of their respective Options and any applicable withholding taxes. The Committee may provide for full or partial vesting of
any outstanding Option prior to a Change of Control in the applicable Option Document or by unilateral amendment to any such Option Document after the grant of any such Option. 

  

	9.	Adjustments on Changes in Capitalization. The aggregate number of Shares and class of Shares as to which Options may be granted hereunder, the number and class or classes of
Shares covered by each outstanding Option and the Option price thereof shall be proportionately adjusted in the event of a stock dividend, stock split, recapitalization or other change in the number or class of issued and outstanding equity
securities of the Company resulting from a subdivision or consolidation of the Common Stock and/or a recapitalization, reorganization or other capital adjustment (not including the issuance of Common Stock on the conversion or exchange of other
securities of the Company which are convertible into or exchangeable for Common Stock) affecting the Common Stock which is effected without receipt of consideration by the Company. The Committee shall have authority to determine the adjustments to
be made under this Section, and any such determination by the Committee shall be final, binding and conclusive; provided, however, that no adjustment shall be made which will cause an ISO to lose its status as such without the consent
of the Optionee, except in the case of any adjustment that may be deemed to have been made pursuant to a Change of Control under Section 8. 

  

	10.	No Commitment to Retain. The grant of an Option pursuant to the Plan shall not be construed to imply or to constitute evidence of any agreement, express or implied, on the
part of the Company or any Subsidiary to retain the Optionee in the employ or service of the Company or a Subsidiary and/or as a member of the Company’s Board or in any other capacity, or interfere in any way with the right of the Company or a
Subsidiary to terminate the services of an Optionee. 

  

	11.	Withholding of Taxes. Whenever the Company proposes or is required to deliver or transfer Shares in connection with the exercise of an Option, the Company shall have the
right to: (a) require the recipient to remit or otherwise make available to the Company an amount sufficient to satisfy any federal, state and/or local withholding tax requirements prior to the delivery or transfer of any certificate or
certificates for such Shares; or (b) take whatever other action it deems necessary to protect its interests with respect to tax liabilities. The Company’s obligation to make any delivery or transfer of Shares shall be conditioned on the
Optionee’s compliance, to the Company’s satisfaction, with any withholding requirement. With the consent of the Committee, in its sole discretion, an Optionee may satisfy any such withholding obligations by (i) authorizing the Company
to withhold sufficient Shares from the Shares otherwise issuable to Optionee as a result of the exercise of the Option, provided, however, that no Shares are withheld with a value exceeding the minimum amount of tax required to be
withheld by law; or (ii) delivering to the Company other owned and unencumbered Shares of Common Stock. 

  

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	12.	Shareholder Rights. No Optionee shall be deemed to be the holder of, or to have any of the rights of a holder with respect to any Shares subject to an Option unless and until
such Optionee has satisfied all requirements for exercise of the Option pursuant to its terms. 

  

	13.	Interpretation. The Plan is intended to enable transactions under the Plan with respect to directors and officers (within the meaning of Section 16(a) under the Exchange
Act) to satisfy the conditions of said Rule 16b-3 under the Exchange Act or its successors; to the extent that any provision of the Plan would cause a conflict with such conditions or would cause the administration of the Plan as provided in
Section 3 to fail to satisfy the conditions of said Rule 16b-3, such provision shall be deemed null and void to the extent permitted by applicable law. This Section shall not be applicable if no class of the Company’s equity
securities is then registered pursuant to Section 12 of the Exchange Act. 

  

	14.	Amendment or Termination of the Plan. The Board may amend, suspend or terminate the Plan, but no such amendment or termination shall be made which would adversely affect any
outstanding Options without the written consent of the affected Optionees. In addition, to the extent necessary to comply with Section 422 of the Code, Section 16b-3 under the Exchange Act or any other applicable law or regulation,
including the requirements of any stock exchange or national market system upon which the Common Stock is then listed, the Corporation shall obtain shareholder approval of any Plan amendment or termination. 

  

	15.	Term of Plan and Effective Date. 

  

	 	 (a)
	 Term of Plan. Unless sooner terminated by the Board pursuant to Section 14, the Plan shall automatically
terminate on the day before the tenth (10th) anniversary of the date the Plan is adopted by the Board; provided
however, that all applicable provisions with respect to Options granted prior to such termination shall remain in effect until all the outstanding Options have been exercised or expired. 

  

	 	(b)	Effective Date. The Plan is effective as of September 28, 2006, the date on which the Plan was approved by the Board of Directors. The Plan is conditioned on the
approval of the shareholders of the Company within twelve (12) months after the date the Plan was so adopted by the Board. No Options shall be granted under the Plan until the Plan is duly approved by the shareholders of the Company.

  

	16.	Choice of Law. The law of the State of Connecticut shall apply to all matters relating to the construction, validity and interpretation of the Plan and the Options granted
under the Plan, without regard to such state’s conflict of laws principles. 

  

 10Unisys Corporation Supplemental Executive Retirement Income Plan

 Exhibit 10.16 
 UNISYS CORPORATION 
 SUPPLEMENTAL EXECUTIVE RETIREMENT INCOME PLAN 
 AS AMENDED AND RESTATED 
 EFFECTIVE JANUARY 1,
2005 
 PREAMBLE 
 The
Unisys Corporation Supplemental Executive Retirement Income Plan, as amended and restated (the “Supplemental Plan”), was adopted by Unisys Corporation (the “Company”) to provide for the payment of supplemental pension benefits to
certain employees who retire under the terms of the Unisys Pension Plan (the “Company Plan”). Capitalized terms which are used and not otherwise defined in this Supplemental Plan have the same definition assigned to them in the Company
Plan. 
 The Supplemental Plan was originally adopted by Burroughs Corporation, effective January 1, 1976, and prior to April 1,
1988, was known as the Burroughs Corporation Supplemental Executive Retirement Income Plan (the “Burroughs Plan”). The Burroughs Plan provided for the payment of supplemental pension benefits to employees of the Company who participated in
the Burroughs Employees’ Retirement Income Plan. Prior to April 1, 1988, the Company also maintained the Sperry Excess Benefit Plan (the “Sperry Plan”) which provided for the payment of supplemental pension benefits to employees
of the Company who participated in Part A of the Sperry Retirement Program. (The Burroughs Plan and Sperry Plan will be collectively referred to hereinafter as the “Prior Plan(s).”) Effective April 1, 1988, supplemental pension
benefits will be provided to employees who participate in the Unisys Pension Plan pursuant to the terms of the Supplemental Plan. 
 The
provisions of Part IV of the Supplemental Plan (effective from April 1, 1988 through May 31, 1988) have been amended and restated effective June 1, 1988 and later amended and restated effective January 1, 2005 and Part IV was
renamed the Unisys Corporation Elected Officers’ Pension Plan. The provisions of that Plan are set forth in a separate plan document. 
 This document is an amendment and restatement of the Supplemental Plan, effective as of January 1, 2005, and includes all amendments to the Plan made through December 31, 2006. Effective after December 31, 2006, the
Supplemental Plan is frozen and no additional benefits shall be accrued hereunder. 
 Purpose 
 The Supplemental Plan (which consolidates the provisions of Parts I and II of the Burroughs Plan) provides for the payment of pension benefits that would have been paid
under the Company Plan but for the benefit limitations imposed by the Internal Revenue Code (the 
  

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 “Code”). The Supplemental Plan also provides for the payment of pension benefits that would have been paid
under the Company Plan if deferred salary, bonuses and commissions had been included in the calculation of the employee’s Compensation. 
 Effective
Date 
 The Supplemental Plan, as amended and restated, herein is effective January 1, 2005, except as otherwise required by law or provided herein.
Effective after December 31, 2006, the Supplemental Plan is frozen and no additional benefits shall be accrued hereunder. 
 Any former
Employee who has retired or terminated employment before April 1, 1988 shall receive no additional rights as a result of this amended and restated Supplemental Plan, but shall have a right to benefits, if any, determined in accordance with the
terms of the Prior Plan in effect on the date of retirement or other termination of employment. 
 ARTICLE I - SUPPLEMENTAL BENEFITS 
 1.1 Eligibility 
 (a) Each Employee who is a
Participant in the Company Plan and whose pension benefits payable under the Company Plan are limited by the compensation or benefit limitations set forth in Sections 401(a)(17) or 415 of the Code shall be eligible for the benefits described in
Section 1.2(a)(1) hereunder. 
 (b) Each Employee who is a Participant in the Company Plan and who has elected to defer base pay, bonus
and commissions shall be eligible for the benefits described in Section 1.2(a)(2) hereunder. 
 (c) An Employee who terminates employment
prior to earning a vested right in an accrued benefit under the Company Plan will not be eligible to receive the benefits provided hereunder. 
 (d) Notwithstanding any provision in this Plan to the contrary, an Employee who is hired or rehired on or after January 1, 2007 shall not become a Participant in the Plan (or resume participation in the Plan). 
 1.2 Calculation of Supplemental Pension Benefit 
 (a)
Subject to subsections (b) and (e), an eligible Employee or the Employee’s Beneficiary, if applicable, shall be entitled to receive a supplemental pension benefit equal to the pension benefit that would have been paid to the Employee or
Beneficiary under the terms of the Company Plan, calculated as if: 
  

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 (1) the Company Plan were administered without regard to the compensation and benefit limitations imposed
under Sections 401(a)(17) or 415 of the Code; and 
 (2) any deferred compensation under an arrangement approved by the Board not included in
the Company Plan had been included in the Employee’s Compensation in the month in which the Employee would have received the bonus or variable compensation amount or salary (but for the Employee’s election to defer). 
 (b) The supplemental pension benefit calculated under Subsection (a) shall be reduced by any benefit payable under the Company Plan, calculated as if
such benefit is payable in the same form as the benefit payable under the Supplemental Plan. The calculation will be made by utilizing methods and assumptions that the Committee deems to be reasonable. 
 (c) For purposes of Subsection (a)(2), the subsequent receipt of any deferred annual bonus amount or salary included in the Employee’s benefit
accrual under the Company Plan shall not be considered for purposes of benefit calculation hereunder. 
 (d) The supplemental pension benefit
calculated under Subsection (a) shall exclude any amount of a Participant’s accrued benefit payable under the Company Plan attributable to the 2000 Additional Benefit, the 2001 Additional Benefit and the 2002 Additional Benefit described
in Appendix I of the Company Plan. 
 (e) Notwithstanding any provision in this Plan to the contrary, a Participant shall not accrue any
additional service, benefits or cash balance pay credits after December 31, 2006, nor shall any compensation earned by a Participant after December 31, 2006 be considered in calculating a Participant’s benefit, provided, however, that
a Participant shall continue to earn interest credits and service for vesting and for determining eligibility for early retirement benefits and subsidies. 
 ARTICLE II - GENERAL PROVISIONS OF THE SUPPLEMENTAL PLAN 
 2.1 Survivor Benefits 
 The pre-retirement surviving spouse benefit provisions under the Company Plan shall also apply under this Supplemental Plan. 
 2.2 Vesting Benefits 
 Any benefit payable under this Supplemental
Plan shall be vested in the same manner and percentage as benefits accrued under the Company Plan. 
  

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 2.3 Forfeiture of Benefits 
 Any benefit payable under this Supplemental Plan shall be forfeitable in the event it is found by the Committee that a retired member hereunder, either during or following termination of employment with the Company, willfully engaged in any
activity which is determined by the Committee to be materially adverse or detrimental to the interests of the Company, including any activity which might reasonably be considered by the Committee to be of a nature warranting dismissal of an employee
for cause. If the Committee so finds, it may suspend benefits to such retired member and, after furnishing notice to the retired member, may terminate benefits under this Supplemental Plan. The Committee will consider in its deliberation relative to
this provision any explanation or justification submitted to it in writing by the retired member within 60 days following the giving of such notice. 
 Except as heretofore provided for in this Section 2.3, the acceptance by a retired member of any benefit under this Supplemental Plan shall constitute an agreement with the provisions of this Supplemental Plan and a representation that
he or she is not engaged or employed in any activity serving as a basis for suspension or forfeiture of benefits hereunder. The Committee may require each retired member eligible for a benefit under this Supplemental Plan to acknowledge in writing
prior to payment of such benefit that he or she will accept payment of benefits under this Supplemental Plan only if there is no basis for such suspension or forfeiture. 
 2.4 Administration 
 This Supplemental Plan shall be administered by the committee or such other person or persons (or
his or their delegate(s)) (the “Committee”) appointed by the Board of Directors to administer the Company Plan. The Committee shall administer this Supplemental Plan in a manner consistent with the administration of the Company Plan,
except that this Supplemental Plan shall be administered as an unfunded plan which is not intended to meet the qualification requirements of Section 401 of the Internal Revenue Code. The Committee’s decision in all matters involving the
interpretation and application of this Supplemental Plan shall be final. 
 2.5 Payment of Benefits 
 Payment of vested benefits under this Supplemental Plan shall be made as provided below: 
 (a) The Participant’s Retirement Accumulation Account shall be payable in a lump sum upon the Participant’s separation from service. 
 (b) The Participant’s Residual Annuity shall be payable at the later of the Participant’s separation from service or his or her attainment of
age 55 as a life annuity, if the Participant is single, or as a reduced (actuarial equivalent) joint and 50% survivor annuity, if the Participant is married. Such reduction shall be consistent with the factors applicable under the Company Plan.
Other forms of annuity payments may be permitted if allowed under Section 409A of the Internal Revenue Code and regulations issued thereunder. All payments commence on the first day of the month coincident with or next following attainment of
eligibility. 
  

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 (c) Notwithstanding the foregoing, distributions upon a Participant’s separation from service may
not be made earlier than six months following the date of the Participant’s separation from service, if a committee, composed of the Chief Financial Officer of the Company and the Company’s head of worldwide Human Resources, determines
that such Participant is a Key Employee as provided in Section 409A of the Internal Revenue Code and regulations issued thereunder. Any benefit accrued and vested as of December 31, 2004 is exempt from the six-month delay. 
 2.6 Employees’ Rights 
 An employee’s rights, or the rights
of an employee’s beneficiary, under this Supplemental Plan, except as to eligibility for a vested benefit and except as specifically altered by the terms of this Supplemental Plan shall be the same as such person’s rights under the Company
Plan, except that such person shall not be entitled to the payment of any benefits under this Plan from the trust established under the Company Plan. Benefits under this Supplemental Plan shall be payable from the general assets of the Company.

 2.7 Amendments and Discontinuance 
 The Company expects
to continue this Supplemental Plan indefinitely, but reserves the right to amend or discontinue it if, in its sole judgment, such a change is deemed necessary or desirable. However, if the Company should amend or discontinue this Supplemental Plan,
the Company shall be liable for any benefits accrued under this Supplemental Plan as of the date of such action. Any change to the Plan which adversely affects a Participant’s or Beneficiary’s rights to benefits and/or the amount, form and
manner in which benefits are accrued, vested and/or paid shall not affect the Participant’s or Beneficiary’s benefits accrued up to the date of the change. Changes which adversely affect the Participant’s or Beneficiary’s rights
under the Plan may only take effect on the adoption date of the change and on a going forward basis. Notwithstanding the foregoing, no Participant consent is necessary if any modification, amendment, suspension or termination of the Supplemental
Plan is necessary to comply with the requirements of Code section 409A. 
 2.8 Claims Procedure 
 (a) Claims. Any person or entity claiming a benefit, requesting an interpretation or ruling under the Plan (hereinafter referred to as
“claimant”), or requesting information under the Plan shall present the request in writing to the Committee, which shall respond in writing or electronically. The notice advising of the denial shall be furnished to the claimant within
ninety (90) days of receipt of the benefit claim by the Committee, unless special circumstances require an extension of time to process the claim. If an extension is required, the Committee shall provide notice of the extension prior to the
termination of the ninety (90) day period. In no event may the extension exceed a total of one hundred eighty (180) days from the date of the original receipt of the claim. 
  

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 (b) Denial of Claim. 
 If the claim or request is denied, the written or electronic notice of denial shall state: 
  

	 	•	 	 The reason(s) for denial; 

  

	 	•	 	 Reference to the specific Plan provisions on which the denial is based; 

  

	 	•	 	 A description of any additional material or information required and an explanation of why it is necessary; and 

  

	 	•	 	 An explanation of the Plan’s claims review procedures and the time limits applicable to such procedures, including the right to bring a civil action under
section 502(a) of ERISA. 

 (c) Review of Claim. Any claimant whose claim or request is denied or who has not
received a response within sixty (60) days may request a review by notice given in writing or electronic form to the Committee. Such request must be made within sixty (60) days after receipt by the claimant of the written or electronic
notice of denial, or in the event the claimant has not received a response, sixty (60) days after receipt by the Committee of the claimant’s claim or request. The claim or request shall be reviewed by the Committee which may, but shall not
be required to, grant the claimant a hearing. On review, the claimant may have representation, examine pertinent documents, and submit issues and comments in writing. 
 (d) Final Decision. The decision on review shall normally be made within sixty (60) days after the Committee’s receipt of claimant’s claim or request. If an extension of time is required for a
hearing or other special circumstances, the claimant shall be notified and the time limit shall be one hundred twenty (120) days. The decision shall be in writing or in electronic form and shall: 
  

	 	•	 	 state the specific reason(s) for the denial; 

  

	 	•	 	 reference the relevant Plan provisions; 

  

	 	•	 	 state that the claimant is entitled to receive, upon request and free of charge, and have reasonable access to and copies of all documents, records and other
information relevant to the claim for benefits; and 

  

	 	•	 	 state that the claimant may bring an action under section 502(a) of ERISA. 

 All decisions on review shall be final and bind all parties concerned. 
 2.9 Benefit Offsets for Overpayments. If a
Participant or Beneficiary receives benefits hereunder for any period in excess of the amount of benefits to which he was entitled under the terms of the applicable terms of the Plan, such overpayment shall be offset against current or future
benefit payments, as applicable, until such time as the overpayment is entirely recouped by the Plan as determined by the Committee in its sole discretion. 
  

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 2.10 Withholding. All federal, state and local income, employment or other taxes required to be withheld in
connection with a benefit payment under the Supplemental Plan shall be the sole responsibility of the Employee. To the extent not otherwise paid for by Employee, the Company shall have the right to deduct from any wages or other compensation payable
to the Employee or any payment made pursuant to this Supplemental Plan any such taxes, as the Committee may determine in its sole discretion. 
 IN WITNESS
WHEREOF, and as evidence of the adoption of the Plan as amended and restated herein, Unisys Corporation has caused this instrument to be executed by its duly authorized representatives. 
  

			
	UNISYS CORPORATION:
		
	By:	 	 /s/ Patricia A. Bradford

		 	Patricia A. Bradford
	
	Dated: December 22, 2006
		
	By:	 	 /s/ Janet Brutschea Haugen

		 	Janet Brutschea Haugen
	
	Dated: December 27, 2006

  

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