Document:

EX-10.3

 Exhibit 10.3 

CORVEL CORPORATION 

RESTATED OMNIBUS INCENTIVE PLAN 

(FORMERLY THE RESTATED 1988 EXECUTIVE STOCK OPTION PLAN) 

AS AMENDED AND RESTATED THROUGH AUGUST 6, 2015 

ARTICLE I. 
 GENERAL

 I. GENERAL PROVISIONS 
 A. The Plan is intended
to promote the interests of the Company and its stockholders by providing a method whereby (i) key employees (including officers and directors) of the Company (or any Parent or Subsidiary) responsible for the management, growth and financial
success of the Company (or any Parent or Subsidiary), (ii) the non-employee members of the Board or the board of directors of any Parent or Subsidiary, and (iii) consultants and advisors who provide valuable services to the Company (or any
Parent or Subsidiary) may be offered various types of equity incentives and rewards intended to encourage such individuals to put forth maximum efforts for the success of the Company’s business and to acquire a proprietary interest, or
otherwise increase their proprietary interest, in the Company, thereby aligning the interests of such persons with the Company’s stockholders. 
 B.
For purposes of the Plan, the following definitions shall be in effect: 
 AFFILIATE: Any entity (i) that, directly or indirectly
through one or more intermediaries, is controlled by the Company or (ii) in which the Company has a significant equity interest, in each case as determined by the Committee. 

AWARD: Any Option, Tandem Right, Limited Right, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit, Performance Award,
Dividend Equivalent, or Other Stock-Based Award granted under the Plan. 
 AWARD AGREEMENT: Any written agreement, contract or other
instrument or document evidencing any Award granted under the Plan. Each Award Agreement shall be subject to the applicable terms and conditions of the Plan and any other terms and conditions (not inconsistent with the Plan) determined by the
Committee. 
 BOARD: The Board of Directors of the Company. 

CHANGE IN CONTROL: A Change in Control shall be deemed to occur in the event that: 

(i) any person or related group of persons (other than the Company or a person that directly or indirectly controls, is controlled by, or is
under common control with, the Company) directly or indirectly acquires beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the
Company’s outstanding securities pursuant to a tender or exchange offer which the Board does not recommend the Company’s stockholders to accept; or 

 (ii) there is a change in the composition of the Board over a period of twelve
(12) consecutive months, such that a majority of the Board members (rounded up to the next whole number) cease, by reason of one or more proxy contests for the election of Board members, to be comprised of individuals who either (a) have
been Board members continuously since the beginning of such period or (b) have been elected or nominated for election as Board members during such period by at least two-thirds of the Board members described in clause (a) who were still in
office at the time such election or nomination was approved by the Board. 
 CODE: The Internal Revenue Code of 1986, as amended. 

COMMON STOCK: The Common Stock issuable under the Plan shall be shares of the Company’s common stock, $0.0001 par value. 

COMMITTEE: The Committee shall be a committee designated by the Board to administer the Plan, which initially shall be the compensation
committee of the Board. The Committee shall be comprised of at least two Directors but not less than such number of Directors as shall be required to permit Awards granted under the Plan to qualify under Rule 16b-3 and Section 162(m) of
the Code, and each member of the Committee shall be a “Non-Employee Director.” 
 COMPANY: The Company shall mean
CorVel Corporation, a Delaware corporation1, or any corporate successor which shall assume the Plan. 

CORPORATE TRANSACTION: A Corporate Transaction shall include any of the following transactions for which the approval of the
Company’s stockholders is obtained: 
 (i) a merger or acquisition in which the Company is not the surviving entity, except for a
transaction the principal purpose of which is to change the state of the Company’s incorporation, 
 (ii) the sale, transfer or other
disposition of all or substantially all of the assets of the Company to any entity other than a parent or subsidiary of the Company, or 

(iii) any reverse merger in which the Company is the surviving entity but in which fifty percent (50%) or more of the Company’s
outstanding voting stock is transferred to holders different from those who held such fifty percent (50%) or greater interest immediately prior to such merger. 

DIRECTOR: A member of the Board, including any Non-Employee Director. 

 

	1 	The Company was previously known as FORTIS Corporation and assumed all of the rights and responsibilities of FORTIS Corporation, a Minnesota corporation (“FORTIS Minnesota”), with respect to the Plan pursuant
to the Agreement and Plan of Merger by and between the Company and FORTIS Minnesota, effective May 16, 1991, under which FORTIS Minnesota changed its state of incorporation from Minnesota to Delaware by merging with and into the Company which
was a wholly owned subsidiary of FORTIS Minnesota. 

  
 2 

 DIVIDEND EQUIVALENT: Any right granted under Section IV of Article IV of the Plan. 

ELIGIBLE PERSON: (i) Any Employee, officer, consultant, or advisor providing services to the Company (or any Parent or Subsidiary),
and (ii) any Director or director of any Parent or Subsidiary who is not an employee of the Company or any Parent or Subsidiary. 

EMPLOYEE: An individual shall be considered to be an Employee for so long as the Company or one or more of its Parent or Subsidiaries
reports his or her earnings on a Form W-2. 
 EXCHANGE ACT: The Securities Exchange Act of 1934, as amended. 

FAIR MARKET VALUE: The Fair Market Value per share of Common Stock on any relevant date shall be determined in accordance with the
following provisions: 
 (i) If the Common Stock is at the time listed on the Nasdaq National Market or the Nasdaq Capital Market, then the
Fair Market Value shall be the closing selling price per share of Common Stock on the date in question, as such price is reported by the National Association of Securities Dealers on the Nasdaq National Market or the Nasdaq Capital Market and
published in The Wall Street Journal. 
 (ii) If the Common Stock is at the time listed on any stock exchange, then the Fair Market Value
shall be the closing selling price per share of Common Stock on the date in question on the stock exchange determined by the Committee to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of
transactions on such exchange and published in The Wall Street Journal. 
 (iii) If the Common Stock is not listed on the Nasdaq National
Market, Nasdaq Capital Market or a national securities exchange, the Fair Market Value shall be the average of the closing bid and ask prices of the Common Stock on that day as reported by the Nasdaq bulletin board or any comparable system on that
day. 
 (iv) If the Common Stock is not traded included in the Nasdaq bulletin board or any comparable system, the Fair Market Value shall be
the average of the closing bid and ask prices on that day as furnished by any member of the National Association of Securities Dealers, Inc. selected from time to time by the Company for that purpose. 

(v) If the date in question is not a trading day, then the Fair Market Value shall be determined based on prices for the trading day prior to
the date in question. 
 HOSTILE TAKE-OVER: A Hostile Take-Over shall be the acquisition, directly or indirectly, by any person or
related group of persons (other than the Company or a person that directly or indirectly controls, is controlled by, or is under common control with, the Company) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of
securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities pursuant to a tender or exchange offer made directly to the Company’s stockholders which the Board does not
recommend such stockholders to accept. 

  
 3 

 NON-EMPLOYEE DIRECTOR. Any Director who is not also an employee of the Company or a Parent
or Subsidiary within the meaning of Rule 16b-3 and is an “outside director” within the meaning of Section 162(m) of the Code. 

NON-STATUTORY OPTION: A Non-Statutory Option shall mean an option not intended to satisfy the requirements of Code Section 422.

 OPTION: A Non-Statutory Option. 

OTHER STOCK-BASED AWARD: Any right granted under Section V of Article IV of the Plan. 

OPTIONEE: Any person to whom an option is granted under the Discretionary Option Grant Program of Article II or the Other Equity Based
Awards Program of Article IV of this Plan. 
 PARENT: A corporation shall be deemed to be a Parent of the Company if it is a
corporation (other than the Company) in an unbroken chain of corporations ending with the Company, provided each such corporation in the unbroken chain (other than the Company) owns, at the time of the determination, stock possessing fifty percent
(50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 

PARTICIPANT: An Eligible Person granted an Award under the Plan. 

PERFORMANCE AWARD: Any right granted under Section III of Article IV of the Plan. 

PERFORMANCE GOAL: Performance Goal shall have the meaning set forth in Section III.A.(i) of Article IV of the Plan. 

PERMANENT DISABILITY: A permanent disability shall have the meaning assigned to it in Code Section 22(e)(3). 

PERSON: Any individual or entity, including a corporation, partnership, limited liability company, association, joint venture or trust.

 PLAN: The CorVel Corporation Restated Omnibus Incentive Plan, which was formerly named the Restated 1988 Executive Stock Option
Plan, as amended and restated. 
 QUALIFIED PERFORMANCE BASED AWARD: A Qualified Performance Based Award shall have the meaning set
forth in Section III.A. of Article IV of the Plan. 
 RESTRICTED STOCK: Any Share granted under Section II of Article IV of the Plan.

 RESTRICTED STOCK UNIT: Any unit granted under Section II of Article IV of the Plan. 

  
 4 

 RULE 16b-3: Rule 16b-3 promulgated by the SEC under the Exchange Act or any successor rule
or regulation. 
 SECURITIES ACT: Securities Act of 1933, as amended. 

SEC: The SEC shall mean the Securities and Exchange Commission. 

SECTION 16(b) INSIDER: An individual shall be considered to be a Section 16(b) Insider on any relevant date under the Plan if such
individual is at the time subject to the short-swing profit restrictions of Section 16(b) of the Exchange Act by reason of his or her affiliation with the Company. 

SERVICE PROVIDER: An individual shall be deemed to be a Service Provider for so long as such individual renders service on a periodic
basis to the Company, its Parent and/or any of its Subsidiaries as an Employee, a non-Employee member of the board of directors or a consultant or independent advisor. 

SHARE OR SHARES: A Share or Shares of Common Stock or such other securities or property as may become subject to Awards pursuant to an
adjustment made pursuant to Section V.C. of Article I of the Plan. 
 STOCK APPRECIATION RIGHT: Any right granted under Section I of
Article IV of the Plan. 
 SUBSIDIARY: A corporation shall be deemed to be a Subsidiary of the Company if it is one of the
corporations (other than the Company) in an unbroken chain of corporations beginning with the Company, provided each such corporation (other than the last corporation in the unbroken chain) owns, at the time of determination, stock possessing fifty
percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. For purposes of all Non-Statutory Option grants, all other Awards granted under Article IV of the Plan, and all
Corporate Transaction provisions of the Plan, the term “Subsidiary” shall also include any partnership, joint venture or other business entity of which the Company owns, directly or indirectly through another entity, more than a fifty
percent (50%) interest in voting power, capital or profits. 
 TANDEM RIGHT: Any tandem stock appreciation right granted under
Section II of Article II of the Plan. 
 C. Stock option grants made to any Participant under the Discretionary Option Grant Program of Article II and
Awards made to any Participant under the Other Equity Based Awards Program of Article IV shall not in any way affect, limit or restrict such individual’s eligibility to participate in any other stock plan or other compensation or benefit plan,
arrangement or practice now or hereafter maintained by the Company or any Parent or Subsidiary. 
 D. Stock option grants or other Awards outstanding under
the Plan shall in no way affect the right of the Company to adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or
assets. 

  
 5 

 II. STRUCTURE OF THE PLAN 

A. Stock Programs. The Plan shall be divided into two separate components: the Discretionary Option Grant Program specified in Article II and the Other
Equity Based Awards Program specified in Article IV. Under the Discretionary Option Grant Program, Eligible Persons may, at the discretion of the Committee, be granted options to purchase shares of Common Stock in accordance with the provisions of
Article II. Under the Other Equity Based Awards Program, Eligible Persons may be granted, at the discretion of the Committee, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Awards, Dividend Equivalents or Other
Stock-Based Awards in accordance with the provisions of Article IV. 
 B. General Provisions. Unless the context clearly indicates otherwise, the
provisions of Articles I and V shall apply to the Discretionary Option Grant Program, the Other Equity Based Awards Program and any outstanding automatic option grants made prior to August 4, 2011, and shall accordingly govern the interests of
all individuals under the Plan. Effective as of August 4, 2011, no further automatic option grants shall be made hereunder. 
 III. ADMINISTRATION
OF THE PLAN 
 A. The Plan shall be administered by the Committee. Subject to applicable law, the Committee may delegate its responsibilities to others
under such conditions and limitations as it may determine, except that the Committee may not delegate its authority with regard to the making of grants to Section 16(b) Insiders. However, if the grant to a Section 16(b) Insider would not
be exempt under SEC Rule 16b-3 if made by the Committee, such grant may be made by the Board. On the other hand, if the grant of an option is intended to be exempt from Code Section 162(m), it must be made by a committee composed exclusively of
outside directors, as that term is defined in Code Section 162(m). 
 B. Subject to the express provisions of the Plan and applicable law, the
Committee shall have the sole and exclusive authority with respect to the Discretionary Option Grant Program and the Other Equity Based Awards Program: 

(i) to designate Participants and make grants of Awards to any and all Eligible Persons; 

(ii) to determine the type or types of Awards to be granted to each Participant; 

(iii) to determine the number of Shares to be covered by, or the method by which payment or other rights are to be determined in connection
with, each Award; 
 (iv) to determine the terms and conditions of any Award or Award Agreement, consistent with the terms of the Plan; 

(v) to determine whether, to what extent, and under what circumstances Awards may be exercised in cash, Shares, promissory notes (provided,
however, that the par value of any Shares to be issued pursuant to such exercise shall be paid in the form of cash, services rendered, personal property, real property or a combination thereof, and the acceptance of such promissory notes does not
conflict with Section 402 of the Sarbanes-Oxley Act of 2002), other securities, other awards or other property, or cancelled, forfeited or suspended; 

  
 6 

 (vi) to interpret the Plan and any Award Agreement, to prescribe, amend and rescind rules and
regulations relating to it, and to make all other determinations deemed necessary or advisable in administering the Discretionary Option Grant Program and the Other Equity Based Awards Program; 

(vii) to change the terms and conditions or accelerate the vesting of any outstanding Award or Award Agreement granted pursuant to Article II,
and any outstanding Award or Award Agreement granted pursuant to Article IV (except for any Qualified Performance Based Award as defined in Article IV of the Plan to the extent such authority would violate Code Section 162(m)), provided such
action does not, without the consent of the holder, adversely affect the rights and obligations such individual may have under the outstanding grant; and 

(vii) to make any other determination or take any other action that the Committee deems necessary or desirable for the administration of the
Plan. 
 C. Designations, determinations, interpretations and other decisions of the Committee on all matters relating to the Plan and any option grants,
stock issuances or any other Awards made hereunder shall be within the sole discretion of the Committee, may be made at any time, and shall be final, conclusive and binding on all Persons having any interest in the Plan or any options or Awards
granted or shares issued under the Plan. 
 D. To the maximum extent permitted by law, the Company shall indemnify each member of the Committee and any
secondary committee formed pursuant to Section III.A. of this Article I and every other member of the Board, as well as any other employee with duties under the Plan, against all liabilities and expenses (including any amount paid in settlement or
in satisfaction of a judgment) reasonably incurred by the individual in connection with any claims against the individual by reason of the performance of the individual’s duties under the Plan. This indemnity shall not apply, however, if:
(i) it is determined in the action, lawsuit, or proceeding that the individual is guilty of gross negligence or intentional misconduct in the performance of those duties; or (ii) the individual fails to assist the Company in defending
against any such claim. The Company shall have the right to select counsel and to control the prosecution or defense of the suit. The Company shall not be obligated to indemnify any individual for any amount incurred through any settlement or
compromise of any action unless the Company consents in writing to the settlement or compromise. 
 E. Notwithstanding anything to the contrary contained
herein (except as provided in Section III.A. of this Article I), the Board may, at any time and from time to time, without any further action of the Committee, exercise the powers and duties of the Committee under the Plan. 

IV. ELIGIBILITY 
 A. The persons eligible to receive
option grants under the Discretionary Option Grant Program of Article II and Awards under the Other Equity Based Awards Program of Article IV are Eligible Persons selected by the Committee to receive such options and Awards. 

  
 7 

 V. STOCK SUBJECT TO THE PLAN 

A. The Common Stock issuable under the Plan shall be made available either from authorized but unissued shares of Common Stock or from shares of Common Stock
reacquired by the Company on the open market. The aggregate number of shares of Common Stock issuable over the term of this Plan shall not exceed 19,365,500 shares. Such share reserve is subject to adjustment from time to time in accordance with
Section V.C. of this Article I. 
 B. Should an option or other Award granted under this Plan expire or terminate for any reason prior to exercise or
surrender in full, the shares subject to the portion of the option or other Award not so exercised or surrendered shall be available for subsequent option or other Award grants under this Plan. Furthermore, in the event that a portion of shares
subject to a Performance Award (including a Qualified Performance Based Award) does not vest as of the end of an applicable performance period because the applicable performance goals become impossible to meet, such portion of such Performance Award
shall immediately be cancelled as of the end of the applicable performance period and the shares subject to such portion of such Performance Award shall be available for subsequent option or other Award grants under this Plan. In addition, unvested
shares issued under the Plan and subsequently cancelled or repurchased by the Company, at the original option or Award exercise price paid per share, pursuant to the Company’s repurchase rights under the Plan shall be added back to the number
of shares of Common Stock reserved for issuance under the Plan and shall accordingly be available for reissuance through one or more subsequent option or other Award grants under the Plan. However, shares subject to Tandem Rights exercised in
accordance with the provisions of Section II of Article II shall reduce on a share-for-share basis the number of shares of Common Stock available for subsequent option or other Award grants under this Plan. Should the exercise price of an
outstanding option or other Award under the Plan be paid with shares of Common Stock or should shares of Common Stock otherwise issuable under the Plan be withheld by the Company in satisfaction of the withholding taxes incurred in connection with
the exercise of an outstanding option or other Award or the vesting of a stock issuance or other Award under the Plan, then the number of shares of Common Stock available for issuance under the Plan shall be reduced by the gross number of shares for
which the option or other Award is exercised or which vest under the stock issuance or other Award, and not by the net number of shares of Common Stock actually issued to the Participant. If an Award entitles the holder thereof to receive or
purchase Shares, the number of Shares covered by such Award or to which such Award relates shall be counted on the date of grant of such Award against the aggregate number of Shares available for granting Awards under the Plan. For purposes of
determining the number of Shares covered on the date of grant by a Stock Appreciation Right that is to be settled in Shares, the aggregate number of Shares with respect to which the Stock Appreciation Right is to be exercised shall be counted
against the number of Shares available for Awards under the Plan (without regard to the number of actual Shares issued upon settlement). Awards that do not entitle the holder thereof to receive or purchase Shares shall not be counted against the
aggregate number of Shares available for Awards under the Plan. 
 C. In the event any change is made to the Common Stock issuable under the Plan by reason
of any stock dividend, recapitalization, stock split, reverse stock split, combination of shares, exchange of shares, reorganization, merger, consolidation, split-up, spin-off, or other change affecting the outstanding Common Stock as a class
without the Company’s receipt of 

  
 8 

 
consideration, then appropriate adjustments shall be made by the Committee to (i) the aggregate number and/or class of securities (or other property) issuable under the Plan, (ii) the
maximum number and/or class of securities (or other property) for which any one Participant may be granted stock options, stock appreciation rights or other Awards over the term of the Plan, (iii) the number and/or class of securities (or other
property) subject to, and the purchase and/or exercise price per share in effect under, each option, stock appreciation right or other Award outstanding under the Plan, and (iv) the limitations contained in Section V.E. of this Article I, in
order to preclude the dilution or enlargement of benefits thereunder. All adjustments made by the Committee pursuant to this Section V.C. shall be final and binding. 

D. In the event that (i) the Company is the surviving entity in any Corporate Transaction which does not result in the termination of outstanding options
pursuant to the Corporate Transaction provisions of the Plan or (ii) the outstanding options under the Plan are to be assumed in connection with such Corporate Transaction, then each such continuing or assumed option shall, immediately after
such Corporate Transaction, be appropriately adjusted to apply and pertain to the number and class of securities which would have been issuable, in consummation of such Corporate Transaction, to an actual holder of the same number of shares of
Common Stock as are subject to such option immediately prior to such Corporate Transaction. Appropriate adjustments shall also be made to the exercise price payable per share, provided the aggregate option price shall remain the same. In addition,
the number and class of securities which remain issuable under this Plan following the consummation of the Corporate Transaction shall be appropriately adjusted. Adjustments under this section will be made in accordance with Code Section 424
and treasury regulations promulgated thereunder to the extent required, and for purposes of compliance with the provisions of Code Section 409A relating to modification of stock rights, adjustments will be made in accordance with the
requirements Code Section 424 and treasury regulations promulgated thereunder as modified by applicable guidance under Code Section 409A. 
 E.
162(m) Limitation on Awards. From and after January 1, 1994 until June 30, 2006, in no event may any one individual participating in the Plan be granted stock options and/or separately exercisable stock appreciation rights, exceeding
1,600,000 shares of Common Stock in the aggregate over such period, subject to adjustment from time to time in accordance with the provisions of Section V.C. of this Article. From and after approval of the stockholders at the 2006 Annual Meeting of
Stockholders, notwithstanding any other provision of the Plan other than Section V.C. of this Article I, no Participant shall be granted: (i) Options or SARs, the value of which are derived solely from the appreciation in the value of Shares
after the date of grant, with respect to more than 500,000 Shares in the aggregate within any fiscal year of the Company; or (ii) other Qualified Performance Based Awards under Article IV that do not meet the definition contained in clause
(i) above and that could result in such Participant receiving more than $1,500,000 in cash or the equivalent Fair Market Value of Shares determined at the date of grant for each full or partial fiscal year of the Company contained in the
performance period of a particular Qualified Performance Based Award, provided, however, that, if any other Qualified Performance Based Awards are outstanding for such Participant for a given fiscal year, such dollar limitation shall be reduced for
each such given fiscal year by the amount that could be received by the Participant under all such Qualified Performance Based Awards, divided, for each such Qualified Performance Based Award, by the number of full or partial fiscal years of the
Company contained in the performance period of each such outstanding Qualified 

  
 9 

 
Performance Based Award; provided, however, that the limitations set forth in this Section V.E. shall be subject to adjustment under Section V.C. of Article I only to the extent that such
adjustment does not affect the status of any Award intended under Article IV to qualify as “performance based compensation” under Section 162(m) of the Code. 

ARTICLE II. 

DISCRETIONARY OPTION GRANT PROGRAM 
 I.
TERMS AND CONDITIONS OF OPTIONS 
 A. The Committee shall have sole and exclusive authority (subject to the express provisions of the Plan) to determine
which Eligible Persons are to be granted options under the Discretionary Option Grant Program, the number of shares to be covered by each such option, the status of the granted option as a Non-Statutory Option, the time or times at which such option
is to become exercisable and the maximum term for which the option is to remain outstanding. 
 B. The granted options shall be evidenced by Award
Agreements in such form as the Committee shall from time to time approve. Unless otherwise provided in a particular Award Agreement, the granted options shall comply with the terms and conditions specified below. 

1. Option Price. 
 a. The
option price per share shall be fixed by the Committee, but in no event shall the option price per share be less than the Fair Market Value per share of Common Stock on the date of the option grant except in connection with a merger, acquisition or
other similar consolidation. 
 b. The option price shall become immediately due upon exercise of the option and shall, subject to the loan
provisions of Section I of Article V, be payable in one or more of the alternative forms specified below: 
 i. full payment in cash or
check payable to the Company’s order; or 
 ii. full payment in shares of Common Stock held by the Optionee for the requisite period
necessary to avoid a charge to the Company’s reported earnings and valued at Fair Market Value on the Exercise Date (as such term is defined below); or 

iii. to the extent the option is exercised for vested shares, full payment through a special sale and remittance procedure pursuant to which
the Optionee is to provide irrevocable written instructions (i) to a brokerage firm to effect the immediate sale of the purchased shares and remit to the Company, out of the sale proceeds available on the settlement date, an amount sufficient
to cover the aggregate option price payable for the purchased shares plus all applicable Federal and state income and employment taxes required to be withheld by the Company by reason of such purchase and (ii) to the Company to deliver the
certificates for the purchased shares directly to such brokerage firm in order to complete the sale transaction; or 
 c. If payment of the
exercise price is made by means of the surrender of shares of Common Stock which are subject to certain restrictions, the number of shares of Common Stock issued upon the exercise of the option equal to the number of shares of restricted stock
surrendered shall be subject to the same restrictions as the restricted stock that was surrendered. 

  
 10 

 d. The Exercise Date shall be the date on which written or electronic notice of the option
exercise is delivered to the Company. Except to the extent the sale and remittance procedure specified in clause (iii) of subparagraph b. above is utilized in connection with the option exercise, payment of the option price for the purchased
shares must accompany such notice. 
 2. Term and Exercise of Options. 

a. Each option granted under the Discretionary Option Grant Program shall be exercisable in one or more installments as shall be determined by
the Committee and set forth in the Award Agreement evidencing such option; provided, however, no such option shall have a maximum term in excess of ten (10) years from the date it was granted to the Optionee. 

b. During the lifetime of the Optionee, Non-Statutory Options shall be exercisable only by the Optionee and shall not be assignable or
transferable other than by will, by the laws of descent and distribution following the Optionee’s death, or to any “Family Member” (as such term is defined in the General Instructions to Form S-8 (or any successor to such Instructions
or such Form) under the Securities Act), provided that the Participant may not receive any consideration for such transfer, the Family Member may not make any subsequent transfers other than by will or by the laws of descent and distribution and the
Company receives written notice of such transfer. This assigned portion may only be exercised by the person or persons who acquire a proprietary interest in the option pursuant to the assignment. The terms applicable to the assigned portion shall be
the same as those in effect for the option immediately prior to such assignment and shall be set forth in such documents issued to the assignee as the Committee may deem appropriate. Notwithstanding the foregoing, the Optionee may also designate one
or more persons as the beneficiary or beneficiaries of his or her outstanding Non-Statutory Options under the Plan, and those options shall, in accordance with such designation, automatically be transferred to such beneficiary or beneficiaries upon
the Optionee’s death while holding those options. Such beneficiary or beneficiaries shall take the transferred options subject to all the terms and conditions of the applicable agreement evidencing each such transferred option, including
(without limitation) the limited time period during which the option may be exercised following the Optionee’s death. 
 3.
Termination of Service. 
 a. Should an Optionee cease to be a Service Provider for any reason (including death or Permanent
Disability) other than due to a termination for the reasons set forth in subparagraph (c) below, then such options shall not be exercisable at any time after the EARLIER of (i) the specified expiration date of the option term or
(ii) the expiration of the limited period of time specified by the Committee in the option agreement. Each such option shall, during such period following cessation of Service Provider status, be exercisable only to the extent of the number of
shares (if any) in which the Optionee is vested on the date of such cessation of Service Provider status. 

  
 11 

 b. Any option held by an Optionee under this Article II at the time of his or her death and
exercisable in whole or in part at that time may be subsequently exercised, but only to the extent of the number of shares (if any) in which the Optionee is vested on the date the Optionee ceases to be a Service Provider (less any of those shares
subsequently purchased by the Optionee prior to death), by the personal representative of the Optionee’s estate, by the person or persons to whom the option is transferred pursuant to the Optionee’s will or the laws of inheritance or by
the Optionee’s designated beneficiary or beneficiaries of that option. Any such exercise must occur prior to the EARLIER of (i) the expiration date of the option term or (ii) the first anniversary of the date of the Optionee’s
death. 
 c. If an Optionee’s Service Provider status is terminated for any of the following reasons, then all outstanding options
granted the Optionee under this Article II shall immediately terminate and cease to be exercisable immediately upon such termination: 
 i.
the Optionee’s intentional misconduct or continuing gross neglect of duties which materially and adversely affects the business and operations of the Company or any Parent or Subsidiary employing the Optionee; 

ii. the Optionee’s unauthorized use or disclosure (or attempt thereat) of confidential information or trade secrets of the Company or any
Parent or Subsidiary; or 
 iii. the Optionee’s commission of an act involving embezzlement, theft, fraud, falsification of records,
destruction of property or commission of a crime or other offense involving money or other property of the Company or any Parent or Subsidiary employing the Optionee. 

The reasons for termination of an Optionee as a Service Provider set forth in this subparagraph (c) are not intended to be an exclusive
list of all acts or omissions which the Company may deem to constitute misconduct or other grounds for terminating the Optionee (or any other individual). 

d. The Committee shall have complete discretion, exercisable either at the time the option is granted or at any time while the option remains
outstanding, to permit one or more options held by the Optionee under this Article II to be exercised, during the limited period of exercisability following cessation of Service Provider status, not only with respect to the number of shares in which
the Optionee is vested at the time of such cessation of Service Provider status but also with respect to one or more subsequent installments of purchasable shares in which the Optionee would otherwise have vested had the Optionee continued as a
Service Provider. 
 e. If the option is granted to an individual who is not an Employee of the Company, then the option agreement evidencing
the granted option shall include provisions comparable to those set forth in subparagraphs (a), (b) and (c) above, and may include provisions comparable to subparagraph (d) above, with respect to the Optionee’s termination of
service with the Company or any Parent or Subsidiary. 
 4. Stockholder Rights. An option holder shall have none of the rights of a
stockholder with respect to any shares covered by the option until such individual shall have exercised the option, paid the option price and satisfied all other conditions precedent to the issuance of certificates for the purchased shares. 

  
 12 

 5. Repurchase Rights. The shares of Common Stock acquired upon the exercise of any Article
II option grant may be subject to one or more repurchase rights of the Company in accordance with the following provisions: 
 a. The
Committee shall have the discretion to authorize the issuance of unvested shares of Common Stock under this Article II. Should the Optionee cease Service Provider status while holding such unvested shares, the Company shall have the right to
repurchase any or all of those unvested shares at the option price paid per share. The terms and conditions upon which such repurchase right shall be exercisable (including the period and procedure for exercise and the appropriate vesting schedule
for the purchased shares) shall be established by the Committee and set forth in the instrument evidencing such repurchase right. 
 b. All
of the Company’s outstanding repurchase rights shall automatically terminate, and all shares subject to such terminated rights shall immediately vest in full, upon the occurrence of any Corporate Transaction, except to the extent: (i) any
such repurchase right is expressly assigned to the successor corporation (or parent thereof) in connection with the Corporate Transaction or (ii) such termination is precluded by other limitations imposed by the Committee at the time the
repurchase right is issued. 
 c. The Committee shall have the discretionary authority, exercisable either before or after the
Optionee’s cessation of Service Provider status, to cancel the Company’s outstanding repurchase rights with respect to one or more shares purchased or purchasable by the Optionee under this Article II and thereby accelerate the vesting of
such shares in whole or in part at any time. 
 II. TANDEM RIGHTS AND LIMITED RIGHTS 

A. The Committee shall have full power and authority, exercisable in its sole discretion, to grant selected Optionees tandem stock appreciation rights
(“Tandem Rights”) pertaining to all or part of the shares of Common Stock subject to one or more of their option grants under this Article II. 

B. Tandem Rights may be granted at the same time the underlying option is granted or any time thereafter while the option remains outstanding. The Optionee
may exercise such Tandem Right by surrendering the underlying option in whole or in part to the Company, to the extent such option is at the time exercisable for vested shares of Common Stock. In exchange for the surrendered option, the Optionee
shall receive a distribution from the Company in an amount equal to the excess of (i) the Fair Market Value (on the option surrender date) of the number of shares in which the Optionee is at the time vested under the surrendered option (or
surrendered portion) over (ii) the aggregate option price payable for such vested shares. However, the exercise of the Tandem Right shall be effective only if approved by the Committee. If so approved, the distribution to which the Optionee
shall accordingly become entitled with respect to the surrendered option shall be made in shares of Common Stock valued at Fair Market Value on the option surrender date. 

  
 13 

 C. If the surrender of an option is rejected by the Committee, then the Optionee shall retain whatever rights the
Optionee had under the surrendered option (or surrendered portion) on the option surrender date and may exercise such rights at any time prior to the last day on which the option is otherwise exercisable in accordance with the terms of the
instrument evidencing such option, but in no event may such rights be exercised more than ten (10) years after the date of the option grant. 
 D.
Prior to July 1, 2006, one or more Section 16(b) Insiders may, in the Committee’s sole discretion, be granted limited stock appreciation rights (“Limited Rights”)2 in
conjunction with their outstanding options under this Article II. Such Limited Rights shall provide that upon the occurrence of a Hostile Take-Over, each outstanding option with such a Limited Right shall automatically be cancelled, to the extent
such option is at the time exercisable for fully-vested shares of Common Stock. The Optionee shall in return be entitled to a cash distribution from the Company in an amount equal to the excess of (i) the Take-Over Price of the vested shares of
Common Stock at the time subject to the cancelled option (or cancelled portion of such option) over (ii) the aggregate exercise price payable for such shares. The cash distribution payable upon such cancellation shall be made within five
(5) days following the consummation of the Hostile Take-Over. The Committee shall pre-approve, at the time the limited right is granted, the subsequent exercise of that right in accordance with the terms of this Section II.D. Accordingly, no
further approval of the Committee or the Board shall be required at the time of the actual option cancellation and cash distribution. The balance of the option (if any) shall continue to remain outstanding and exercisable in accordance with the
terms and conditions of the instrument evidencing such option. 
 III. CORPORATE TRANSACTION 

A. Upon the occurrence of a Corporate Transaction, the exercisability of each option outstanding under this Article II shall be automatically accelerated so
that each such option shall, immediately prior to the specified effective date for the Corporate Transaction, become fully exercisable with respect to the total number of shares of Common Stock at the time subject to such option, whether or not
vested, and may be exercised for all or any portion of such shares. However, an outstanding option under this Article II shall NOT be so accelerated if and to the extent: (i) such option is, in connection with the Corporate Transaction, either
to be assumed by the successor corporation or parent thereof or to be replaced with a comparable option to purchase shares of the capital stock of the successor corporation or parent thereof, or (ii) such option is to be replaced with a cash
incentive program of the successor corporation which preserves the spread existing at the time of the Corporate Transaction on any shares for which the option is not otherwise at that time exercisable and provides for subsequent payout in accordance
with the same exercise/vesting schedule applicable to those option shares, or (iii) the acceleration of such option is subject to other applicable limitations imposed by the Committee at the time of grant. The determination of comparability
under clause (i) above shall be made by the Committee, and its determination shall be final and binding. 
  

	2 	Options granted to Section 16(b) Insiders prior to the effective date of the June 15, 1992 Restatement contain a different form of Limited Right. Such right will provide each Section 16(b) Insider with a
thirty (30)-day election period, following the successful completion of a hostile tender offer for fifty percent (50%) or more of the Company’s outstanding voting securities, to surrender the underlying option for a cash distribution from
the Company in an amount per share of Common Stock in which the Section 16(b) Insider is at the time vested under the surrendered option equal to the excess of the highest price per share paid in effecting such tender offer over the exercise
price payable per share under the surrendered option. 

  
 14 

 B. The Committee shall have the discretion, exercisable at any time, to provide (upon such terms and conditions
as it may deem appropriate) for either the automatic acceleration of one or more assumed or replaced options which do not accelerate in connection with the Corporate Transaction or for the automatic vesting of any cash incentive programs implemented
in replacement of such options, in the event the Optionee’s employment should subsequently terminate within a designated period following the effective date of such Corporate Transaction. 

C. Upon the consummation of the Corporate Transaction, all outstanding options under this Article II shall, to the extent not previously exercised or assumed
by the successor corporation or its parent company, terminate and cease to be outstanding. 
 ARTICLE III. 

[RESERVED] 
 ARTICLE IV.

 OTHER EQUITY BASED AWARDS PROGRAM 

Subject to any limitations contained in the Plan, the Committee shall have sole and exclusive authority (subject to the express provisions of
the Plan) to determine which Eligible Persons are to be granted Awards under the Other Equity Based Awards Program, and the terms and conditions of any such Awards. Such Awards shall be evidenced by Award Agreements in such form as the Committee
shall from time to time approve. 
 I. STOCK APPRECIATION RIGHTS. 

The Committee is authorized to grant free-standing Stock Appreciation Rights to Eligible Persons subject to the terms of the Plan and any
applicable Award Agreement. Each such Stock Appreciation Right granted under the Plan shall confer on the holder upon exercise the right to receive a number of Shares equal to the excess of (a) the Fair Market Value of one Share on the date of
exercise (or, if the Committee shall so determine, at any time during a specified period before or after the date of exercise) over (b) the grant price of the Stock Appreciation Right as determined by the Committee, which grant price shall not
be less than 100% of the Fair Market Value of one Share on the date of grant of the Stock Appreciation Right. Subject to the terms of the Plan, the grant price, term, methods of exercise, dates of exercise and any other terms and conditions
(including conditions or restrictions on the exercise thereof) of any Stock Appreciation Right shall be as determined by the Committee. 
 II. RESTRICTED
STOCK AND RESTRICTED STOCK UNITS 
 A. The Committee is hereby authorized to grant Restricted Stock and Restricted Stock Units to Eligible Persons with
the following terms and conditions and with such additional terms and conditions not inconsistent with the provisions of the Plan as the Committee shall determine: 

  
 15 

 (i) Restrictions. Shares of Restricted Stock and Restricted Stock Units shall be subject
to such restrictions as the Committee may impose (including, without limitation, a restriction on or prohibition against the right to receive any dividend or other right or property with respect thereto), which restrictions may lapse separately or
in combination at such time or times, in such installments or otherwise as the Committee may deem appropriate. 
 (ii) Stock
Certificates. Any Restricted Stock granted under the Plan shall be evidenced by the issuance of a stock certificate or certificates, which shall be held by the Company. Such certificate or certificates shall be registered in the name of the
Participant and shall bear an appropriate legend referring to the applicable Award Agreement and possible forfeiture of such shares of Restricted Stock. 

(iii) Forfeiture. Except as otherwise determined by the Committee, upon a Participant’s termination of employment (as determined
under criteria established by the Committee) during the applicable restriction period, all applicable Shares of Restricted Stock and Restricted Stock Units at such time subject to restriction shall be forfeited and reacquired by the Company;
provided, however, that the Committee may, when it finds that a waiver would be in the best interest of the Company, waive in whole or in part any or all remaining restrictions with respect to Shares of Restricted Stock or Restricted
Stock Units. 
 III. PERFORMANCE AWARDS 
 A. The
Committee is hereby authorized to grant Performance Awards to Eligible Persons subject to the terms of the Plan. A Performance Award granted under the Plan (a) may be denominated or payable in cash, Shares (including, without limitation,
Restricted Stock and Restricted Stock Units), other securities, other Awards or other property and (b) shall confer on the holder thereof the right to receive payments, in whole or in part, upon the achievement of such performance goals during
such performance periods as the Committee shall establish. Subject to the terms of the Plan, the performance goals to be achieved during any performance period, the length of any performance period, the amount of any Performance Award granted, the
amount of any payment or transfer to be made pursuant to any Performance Award and any other terms and conditions of any Performance Award shall be determined by the Committee. From time to time, the Committee may designate a Performance Award
granted hereunder as an award of “qualified performance-based compensation” within the meaning of Section 162(m) of the Code (a “Qualified Performance Based Award”), and such awards shall comply with the following
requirements. 
 (i) Performance Goals; Timing of Designations. Qualified Performance Based Awards shall, to the extent required by
Section 162(m), be conditioned solely on the achievement of one or more objective performance goals, and such performance goals shall be established by the Committee within the time period prescribed by, and shall otherwise comply with the
requirements of, Section 162(m) (“Performance Goals”). The Committee shall, not later than 90 days after the beginning of each performance period, (A) designate all Participants for such performance period, and
(B) establish the objective Performance Goals for each Participant for that performance period on the basis of one or more of the business criteria set forth in (ii) below. 

  
 16 

 (ii) Business Criteria. Unless and until the Committee proposes for stockholder approval
and the Company’s stockholders approve a change in the general business criteria set forth in this section, the attainment of which may determine the amount and/or vesting with respect to Qualified Performance Based Awards, the business
criteria to be used for purposes of establishing Performance Goals for Qualified Performance Based Awards shall be selected from the following alternatives. Performance goals may be based upon based upon one or more of the following business
criteria, either individually, alternatively or in any combination, applied on a corporate, subsidiary or business unit basis: revenue, cash flow, gross profit, earnings before interest and taxes, earnings before interest, taxes, depreciation and
amortization and net earnings, earnings per share, margins (including one or more of gross, operating and net income margins), returns (including one or more of return on assets, equity, investment, capital and revenue and total stockholder return),
stock price, economic value added, working capital, market share, cost reductions, workforce satisfaction and diversity goals, employee retention, customer satisfaction, completion of key projects and strategic plan development and implementation.
Such Performance Goals may reflect absolute entity or business unit performance or a relative comparison to the performance of a peer group of entities or other external measure of the selected performance criteria. Pursuant to rules and conditions
adopted by the Committee on or before the 90th day of the applicable performance period for which Performance Goals are established, the Committee may appropriately adjust any evaluation of performance under such goals to exclude the effect of
certain events, including any of the following events: asset write-downs; litigation or claim judgments or settlements; changes in tax law, accounting principles or other such laws or provisions affecting reported results; severance, contract
termination and other costs related to exiting certain business activities; and gains or losses from the disposition of businesses or assets or from the early extinguishment of debt. 

(iii) Payment of Qualified Performance Based Awards. Unless another specified payment date or schedule of payment dates is provided in
the applicable Award Agreement, Qualified Performance Based Awards shall be paid within 2  1⁄2 months after the end of the calendar year in which the
applicable performance condition ends. The Committee shall certify in writing that Performance Goals have been met prior to payment of the Qualified Performance Based Awards to the extent required by Section 162(m). The Committee may, in its
discretion, reduce the amount of a payout otherwise to be made in connection with a Qualified Performance Based Award, but may not exercise discretion to increase such amount. 

(iv) Certain Events. If a Participant dies or becomes permanently and totally disabled before the end of a performance period or after
the performance period and before a Qualified Performance Based Award is paid, the Committee may, in its discretion, determine that the Participant shall be paid a pro rated portion of the award that the Participant would have received but for such
death or disability. 
 (v) Stockholder Approval of Plan. No Qualified Performance Based Award shall be granted more than five years
after the date of the 2015 Annual Stockholders Meeting unless the stockholders have re-approved the Plan to the extent required by Section 162(m) of the Code. 

(vi) Interpretation. The provisions in this Section III of Article IV, and all of the other terms and conditions of the Plan as it
applies to any Qualified Performance Based Award, shall be interpreted in such a fashion as to qualify all compensation paid thereunder as “qualified performance-based compensation” within the meaning of Section 162(m) of the Code.

  
 17 

 IV. DIVIDEND EQUIVALENTS 

The Committee is authorized to grant Dividend Equivalents to Eligible Persons under which the Participant shall be entitled to receive payments
(in cash, Shares, other securities, other Awards or other property as determined in the discretion of the Committee) equivalent to the amount of cash dividends paid by the Company to holders of Shares with respect to a number of Shares determined by
the Committee. Subject to the terms of the Plan, such Dividend Equivalents may have such terms and conditions as the Committee shall determine. 
 V.
OTHER STOCK-BASED AWARDS 
 The Committee is authorized to grant to Eligible Persons, subject to the terms of the Plan, such other Awards
that are denominated or payable in, valued in whole or in part by reference to, or otherwise based on or related to, Shares (including, without limitation, securities convertible into Shares), as are deemed by the Committee to be consistent with the
purpose of the Plan. Shares or other securities delivered pursuant to a purchase right granted under this Section V shall be purchased for such consideration, which may be paid by such method or methods and in such form or forms (including,
without limitation, cash, Shares, promissory notes, promissory notes (provided, however, that the par value of any Shares to be issued pursuant to such exercise shall be paid in the form of cash, services rendered, personal property,
real property or a combination thereof and the acceptance such promissory notes does not conflict with Section 402 of the Sarbanes-Oxley Act of 2002), other securities, other Awards or other property or any combination thereof, as the Committee
shall determine, the value of which consideration, as established by the Committee, shall not be less than 100% of the Fair Market Value of such Shares or other securities as of the date such purchase right is granted. 

ARTICLE V. 

MISCELLANEOUS 
 I. LOANS OR GUARANTEE OF
LOANS 
 The Committee may assist a Participant (including any officer or director) in the exercise of one or more outstanding options
under the Discretionary Option Grant Program or one or more outstanding Awards under the Other Equity Based Awards Program by (a) authorizing the extension of a full-recourse interest-bearing loan to such Optionee from the Company,
(b) permitting the Participant to pay the exercise price or other purchase price with respect to such Award in installments over a period of years or (c) authorizing a guarantee by the Company of a third-party loan to the Participant, but
in each case only to the extent any such action does not conflict with Section 402 of the Sarbanes-Oxley Act of 2002. The terms of any loan, installment method of payment or guarantee (including the interest rate and terms of repayment) shall
be established by the Committee in its sole discretion. The maximum credit available to the Participant shall not exceed the sum of (i) the aggregate exercise price of the option shares (less the par value) or the aggregate purchase price for
the Award plus (ii) any Federal and state income and employment tax liability incurred by the Participant in connection with the exercise of the option or Award. 

  
 18 

 II. TAX WITHHOLDING 

A. The Company’s obligation to deliver shares or cash upon the exercise or surrender of stock options or any Awards granted under the Plan shall be
subject to the satisfaction by the Participant of all applicable Federal, state and local income and employment tax withholding requirements. 
 B. The
Committee may, in its discretion and upon such terms and conditions as it may deem appropriate (including the applicable safe-harbor provisions of SEC Rule 16b-3 or any successor rule or regulation) provide any or all holders of outstanding option
grants under the Plan (other than grants made to non-Employees) with the election to surrender previously acquired shares of Common Stock or have shares withheld in satisfaction of the tax withholding obligations. To the extent necessary to avoid
adverse accounting treatment, the number of shares that may be withheld for this purpose shall not exceed the minimum number needed to satisfy the applicable income and employment tax withholding rules. If Common Stock is used to satisfy the
Company’s tax withholding obligations, the stock shall be valued at its Fair Market Value when the tax withholding is required to be made. 
 III.
EXTENSION OF EXERCISE PERIOD 
 The Committee shall have full power and authority to extend the period of time for which any option
granted under the Discretionary Option Grant Program is to remain exercisable following the Optionee’s termination of service from the period set forth in the option agreement to such greater period of time as the Committee shall deem
appropriate; provided, however, that in no event shall such extension exceed the limitations set forth by applicable law and regulations under Code Section 409A; and provided further, that in no event shall such option be exercisable after the
specified expiration date of the option term. 
 IV. AMENDMENT OF THE PLAN 

The Board shall have the complete and exclusive authority to amend, modify, suspend, discontinue or terminate the Plan; provided, however, that
if and to the extent required by Code Section 409A and applicable guidance thereunder, such authority will not include the authority to terminate deferred compensation arrangements in violation of Code Section 409A; and provided further,
that no amendment or modification shall, without the consent of the holders, adversely affect rights and obligations with respect to any stock options, stock appreciation rights, or other Awards at the time outstanding under the Plan. In addition,
certain amendments, including increasing the number of shares issuable under the Plan or modifying the requirements for eligibility, will require stockholder approval pursuant to applicable laws or regulations. 

V. EFFECTIVE DATE AND TERM OF PLAN 
 A. The Plan was
initially adopted by the Board and approved by the Company’s sole stockholder on August 1, 1988. 

  
 19 

 B. The Board and sole stockholder amended and restated the Plan effective May 15, 1991 to (i) increase
the number of shares issuable pursuant to the Plan, (ii) conform the provisions of the Plan to the SEC rules under Section 16 of the Exchange Act applicable to certain transactions effected under the Plan by Section 16(b) Insiders and
(iii) provide for the ability to grant incentive stock options. 
 C. The Plan was further restated on June 15, 1992 (the “1992
Restatement”) to (i) increase the number of shares of Common Stock authorized for issuance under the Plan by an additional 400,000 shares, (ii) bring the Plan into compliance with revisions to SEC Rule 16b-3 which became effective on
September 1, 1993 and would exempt certain officer and director transactions under the Plan from the short-swing liability provisions of the federal securities laws and (iii) effect certain technical revisions to the provisions of the Plan
to facilitate plan administration and interpretation. The 1992 Restatement was approved by the Company’s stockholders at the 1992 Annual Meeting. 
 D.
The Plan was further restated and amended by the Board in June 1993 (the “1993 Restatement”) to add the Automatic Option Grant Program. The 1993 Restatement was approved by the Company’s stockholders at the 1993 Annual Meeting. 

E. On May 4, 1994, the Board approved an amendment and restatement of the Plan (the “1994 Restatement”) to (i) increase the aggregate
number of shares issuable over the term thereof by 400,000 shares to a total of 2,670,000 shares and (ii) impose a limitation of 1,600,000 shares on the maximum number of shares of Common Stock for which any one participant may be granted stock
options and separately exercisable stock appreciation rights over the remaining term of the Plan. The 1994 Restatement was approved by the Company’s stockholders at the 1994 Annual Meeting. 

F. On June 21, 1996, the Board approved an amendment and restatement of the Plan (the “1996 Restatement”) to (i) increase the aggregate
number of shares issuable over the term thereof by 400,000 shares to 3,070,000 shares, and (ii) extend the expiration date of the Plan to June 30, 2006. The 1996 Restatement was approved by the Company’s stockholders at the 1996
Annual Meeting. 
 G. In June 1997, the Board further amended and restated the Plan (the “1997 Restatement”) to effect the following revisions:
(i) increase the number of shares of Common Stock reserved for issuance over the term of the Plan by an additional 400,000 shares to 3,470,000 shares, (ii) render the non-Employee Board members eligible to receive option grants under the
Discretionary Option Grant Program, (iii) allow unvested shares issued under the Plan and subsequently repurchased by the Company at the option exercise price paid per share to be reissued under the Plan, (iv) remove certain restrictions
on the eligibility of non-Employee Board members to serve as members of the Committee and (v) effect a series of additional changes to the provisions of the Plan in order to take advantage of certain amendments to SEC Rule 16b-3. The 1997
Restatement was approved by the Company’s stockholders at the 1997 Annual Meeting. 

  
 20 

 H. In February 1999, the Board further amended and restated the Plan to permit optionees under the Discretionary
Option Grant and Automatic Option Programs of the Plan to designate a beneficiary or beneficiaries to whom their options may be transferred upon their death. 

I. On May 10, 2001, the Board further amended and restated the Plan (the “2001 Restatement”) to (i) effect certain technical revisions to
the provisions of the Plan in order to facilitate the administration and interpretation of the Plan, (ii) clarify the group of employees who are eligible to participate in the Plan and (iii) increase the number of shares of Common Stock
reserved for issuance over the term of the Plan by an additional 500,000 shares to 3,970,000 shares. The 2001 Restatement was approved by the Company’s stockholders at the 2001 Annual Meeting. 

J. On June 27, 2006, the Board further amended and restated the Plan (the “2006 Restatement”) to (i) address changes in applicable law and
accounting principles, (ii) permit the Committee to make awards of free-standing stock appreciation rights, restricted stock, restricted stock units, performance awards, dividend equivalents, and Other Stock-Based Awards under the Plan, subject
to such terms and conditions as determined by the Committee, (iii) extend the term of the Plan until June 30, 2016, (iv) rename the Plan and (v) increase the number of shares of Common Stock reserved for issuance over the term of
the Plan by an additional 500,000 shares to 6,455,000 shares. The 2006 Restatement was approved by the Company’s stockholders approval at the 2006 Annual Meeting. 

K. All share numbers in the 2006 Restatement reflect (i) the two-for-one split of the Common Stock effected on June 14, 1999 and (ii) the
three-for-two split of the Common Stock effected on August 31, 2001, and all share numbers in the 2008 Restatement (defined below) reflect the 3-for-2 split of the Common Stock effected on December 8, 2006, all of which were effected in
the form of a stock dividend. 
 L. On May 6, 2008, the Board further amended and restated the Plan (the “2008 Restatement”) to reduce the
number of shares of common stock underlying options to be granted under the automatic option grant program from 11,250 to 7,500 shares for initial automatic option grants to be awarded to a director upon first joining the Board and from 4,500
to 3,000 shares for annual automatic option grants to be awarded to directors on the date of each annual meeting of stockholders. The 2008 Restatement was approved by the Company’s stockholders at the 2008 Annual Meeting. 

M. On June 8, 2010, the Board further amended and restated the Plan to provide that in the event that a portion of shares subject to a Performance Award
(including a Qualified Performance Based Award) does not vest as of the end of an applicable performance period because the applicable performance goals become impossible to meet, such portion of such Performance Award shall immediately be cancelled
as of the end of the applicable performance period and the shares subject to such portion of such Performance Award shall be available for subsequent option or other Award grants under this Plan. 

N. On June 21, 2011, the Board further amended and restated the Plan (the “2011 Restatement”), subject to approval of the Company’s
stockholders, to (i) eliminate future automatic option grants, (ii) to make members of the Committee eligible to receive Awards 

  
 21 

 
under the Discretionary Option Grant Program and the Other Equity Based Awards Program and (iii) to reapprove the material terms of the performance goals under the Plan for purposes of
Section 162(m) of the Code. The 2011 Restatement was approved by the Company’s stockholders at the 2011 Annual Meeting. 
 O. On June 19,
2015, the Board further amended and restated the Plan (the “2015 Restatement”), subject to approval of the Company’s stockholders, to (i) extend the Plan’s term to June 30, 2026 and (ii) to reapprove the material
terms of the performance goals under the Plan for purposes of Section 162(m) of the Code. The 2015 Restatement was approved by the Company’s stockholders at the 2015 Annual Meeting. 

P. All share numbers in the 2015 Restatement reflect the two-for-one split of the Common Stock effected on June 26, 2013, which was effected in the form
of a stock dividend. 
 Q. The provisions of the various restatements of the Plan apply only to stock options, stock appreciation rights, and other Awards
granted under the Plan from and after the respective effective dates of such Restatements. All stock options and stock appreciation rights issued and outstanding under the Plan immediately prior to such effective dates of the restatements of the
Plan shall continue to be governed by the terms and conditions of the Plan (and the instrument evidencing each such option or stock appreciation right) as in effect on the date each such option or stock appreciation was previously granted, and
nothing in the restatements of the Plan shall be deemed to affect or otherwise modify the rights or obligations of the holders of such options or stock appreciation rights with respect to the acquisition of shares of Common Stock thereunder or the
exercise of their outstanding stock appreciation rights. 
 R. The sale and remittance procedure authorized for the exercise of outstanding options shall be
available for all options granted under the Plan from and after November 6, 1991 and for all Non-Statutory Options outstanding on such date. 
 S.
Subject to Section IV of Article V, the Plan shall in all events terminate upon the EARLIEST of (i) June 30, 2026, (ii) the date on which all shares available for issuance under the Plan shall have been issued or cancelled pursuant to
the exercise or surrender of stock options, stock appreciation rights or other Awards under the Plan, (iii) the termination of all outstanding Awards in connection with a Corporate Transaction or (iv) termination by the Board. If the date
of termination is determined under clause (i) above, then any stock options, stock appreciation rights or other Awards at the time outstanding under the Plan shall continue to have force and effect in accordance with the provisions of the
instruments evidencing such grants. 
 VI. MISCELLANEOUS MATTERS 

A. Any cash proceeds received by the Company from the issuance of shares hereunder shall be used for any corporate purpose. 

B. The implementation of the Plan, the granting of any stock option or other Award , and the issuance of Common Stock or other Award hereunder, shall be
subject to the Company’s procurement of all approvals and permits required by regulatory authorities having jurisdiction over the Plan, and the stock options and other Awards granted under it and the Common Stock issued pursuant to it. The
inability of the Company to obtain the requisite approvals shall relieve the Company of any liability with respect to the non-issuance or sale of the Common Stock as to which such approvals shall not have been obtained. The Company, however, shall
attempt to obtain all requisite approvals. 

  
 22 

 C. No shares of Common Stock or other property shall be issued or delivered under the Plan unless and until there
shall have been compliance with all applicable requirements of Federal and state securities laws, including the filing and effectiveness of the Form S-8 registration statement for the shares of Common Stock issuable under the Plan, and all
applicable listing requirements of any stock exchange (or the Nasdaq National Market, if applicable) on which Common Stock is then listed for trading. No shares of Common Stock or other property shall be issued or delivered under the Plan if doing
so would violate any internal policies of the Company. 
 D. Neither the action of the Company in establishing the Plan, nor any action taken by the Board
or the Committee hereunder, nor any provision of the Plan itself shall be construed so as to grant any individual the right to remain in the employ or service of the Company or any Parent or Subsidiary for any period of specific duration, and the
Company (or any Parent or Subsidiary retaining the services of such individual) may terminate such individual’s employment or service at any time and for any reason, with or without cause. 

E. Nothing contained in the Plan shall be construed to limit the authority of the Company to exercise its corporate rights and powers, including (without
limitation) the right of the Company (a) to grant options for corporate purposes otherwise than under this Plan to any Eligible Person or other Person, firm or company or association or (b) to grant options to, or assume the option of, any
Person in connection with the acquisition (by purchase, lease, merger, consolidation or otherwise) of the business and assets (in whole or in part) of any Person, firm, company or association. 

F. No Participant will have rights under an Award granted to such Participant unless and until an Award Agreement shall have been duly executed on behalf of
the Company and, if requested by the Company, signed by the Participant. In the event that any provision of an Award Agreement conflicts with or is inconsistent in any respect with the terms of the Plan as set forth herein or subsequently amended,
the terms of the Plan shall control. 
 G. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a
fiduciary relationship between the Company or any Parent or Subsidiary and an Eligible Person or any other Person. To the extent that any Person acquires a right to receive payments from the Company or any Parent or Subsidiary pursuant to an Award,
such right shall be no greater than the right of any unsecured general creditor of the Company or any Affiliate. 
 H. The Plan is intended to comply in all
respects with Rule 16b-3 or any successor provision, as in effect from time to time, and in all events the Plan shall be construed in accordance with the requirements of Rule 16b-3. If any Plan provision does not comply with
Rule 16b-3 as hereafter amended or interpreted, the provision shall be deemed inoperative. The Board, in its absolute discretion, may bifurcate the Plan so as to restrict, limit or condition the use of any provision of the Plan with respect to
persons who are officers or directors subject to Section 16 of the Exchange Act without so restricting, limiting or conditioning the Plan 

  
 23 

 
with respect to other Eligible Persons. With respect to Options and Stock Appreciation Rights, the Company intends to have the Plan administered in accordance with the requirements for the award
of “qualified performance-based compensation” within the meaning of Section 162(m) of the Code. 
 I. No compensation or benefit awarded to
or realized by any Participant under the Plan shall be included for the purpose of computing such Participant’s compensation under any compensation-based retirement, disability, or similar plan of the Company unless required by law or otherwise
provided by such other plan. 
 J. Except with respect to Shares of Restricted Stock as to which the Participant has been granted the right to vote, neither
a Participant nor the Participant’s legal representative shall be, or have any of the rights and privileges of, a stockholder of the Company with respect to any Shares issuable to such Participant upon the exercise or payment of any Award, in
whole or in part, unless and until such Shares have been issued in the name of such Participant or such Participant’s legal representative without restrictions thereto. 

K. No Award and no right under any such Award shall be assignable or transferable by a Participant other than by will or the laws of descent and distribution
following the Participant’s death; provided, however, that at any time such Participant holds a Non-Statutory Option, such Participant may transfer such Option to any “Family Member” (as such term is defined in the General
Instructions to Form S-8 (or any successor to such Instructions or such Form) under the Securities Act), provided that the Participant may not receive any consideration for such transfer, the Family Member may not make any subsequent transfers other
than by will or by the laws of descent and distribution and the Company receives written notice of such transfer. The assigned portion may only be exercised by the person or persons who acquire a proprietary interest in the Award pursuant to the
assignment. The terms applicable to the assigned portion shall be the same as those in effect for the Award immediately prior to such assignment and shall be set forth in such documents issued to the assignee as the Committee may deem appropriate.
Notwithstanding the foregoing, the Participant may also designate one or more persons as the beneficiary or beneficiaries of his or her outstanding Awards under the Plan, and those Awards shall, in accordance with such designation, automatically be
transferred to such beneficiary or beneficiaries upon the Participant’s death while holding those Awards. Such beneficiary or beneficiaries shall take the transferred Awards subject to all the terms and conditions of the applicable agreement
evidencing each such transferred Award. 
 L. The validity, construction and effect of the Plan or any Award, and any rules and regulations relating to the
Plan or any Award, shall be determined in accordance with the internal laws, and not the law of conflicts, of the State of Delaware. 
 M. If any provision
of the Plan or any Award is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction or would disqualify the Plan or any Award 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 so construed or deemed amended without, in the determination of the Committee, materially altering the purpose or intent of the Plan or the Award, such provision shall be stricken as to such
jurisdiction or Award, and the remainder of the Plan or any such Award shall remain in full force and effect. 

  
 24 

 N. No fractional Shares shall be issued or delivered pursuant to the Plan or any Award, and the Committee shall
determine whether cash shall be paid in lieu of any fractional Shares or whether such fractional Shares or any rights thereto shall be canceled, terminated or otherwise eliminated. 

O. Headings are given to the Sections and subsections of the Plan solely as a convenience to facilitate reference. Such headings shall not be deemed in any
way material or relevant to the construction or interpretation of the Plan or any provision thereof. 

  
 25EX-10.4

 Exhibit 10.4 

CORVEL CORPORATION 

1991 EMPLOYEE STOCK PURCHASE PLAN 

AS AMENDED AND RESTATED ON AUGUST 5, 2010 

I. PURPOSE 
 The CorVel Corporation 1991
Employee Stock Purchase Plan, as amended and restated on August 5, 2010 (the “Plan”), is intended to provide eligible employees of the Company and one or more of its Corporate Affiliates with the opportunity to acquire a proprietary
interest in the Company through participation in a plan designed to qualify as an employee stock purchase plan under Section 423 of the Internal Revenue Code (the “Code”). 

II. DEFINITIONS 
 For purposes of
administration of the Plan, the following terms shall have the meanings indicated: 
 “BASE SALARY” means the regular base earnings
paid to a Participant by one or more Participating Companies during such individual’s period of participation in the Plan, plus (i) one hundred percent (100%) of the commissions paid to such individual during each purchase period in
which he or she participates in the Plan and (iii) any salary deferral contributions made by such Participant to any Code Section 401(k) Plan of the Company or any Company Affiliate during such period. There shall be excluded from the
calculation of Base Salary (i) all overtime payments, bonuses, profit-sharing distributions and other incentive-type payments and (ii) all contributions (other than Code Section 401(k) contributions) made by the Company or its
Corporate Affiliates for such individual’s benefit under any employee benefit or welfare plan now or hereafter established. 

“BOARD” means the Board of Directors of the Company. 

“COMPANY” means CorVel Corporation, a Delaware corporation1, and any corporate
successor to all or substantially all of the assets or voting stock of the Company that shall by appropriate action adopt the Plan. 

“CORPORATE AFFILIATE” means any company that is either the parent corporation or a subsidiary corporation of the Company (as
determined in accordance with Section 424 of the Code), including any parent or subsidiary corporation that becomes such after the Effective Date. 

 

	1 	The Company was previously known as FORTIS Corporation and assumed all of the rights and responsibilities of FORTIS Corporation, a Minnesota corporation (“FORTIS Minnesota”), with respect to the Plan pursuant
to the Agreement and Plan of Merger by and between the Company and FORTIS Minnesota, effective May 16, 1991, under which FORTIS Minnesota changed its state of incorporation from Minnesota to Delaware by merging with and into the Company, which
was a wholly owned subsidiary of FORTIS Minnesota. 

 “EFFECTIVE DATE” means October 1, 1991; provided, however, that any Corporate
Affiliate that becomes a Participating Company in the Plan after October 1, 1991, shall designate a subsequent Effective Date with respect to its employee-Participants. 

“ELIGIBLE EMPLOYEE” means any person who is regularly engaged, for a period of more than twenty (20) hours per week and more
than five (5) months per calendar year, in the rendition of personal services to the Company or any other Participating Company for earnings considered wages under Section 3121(a) of the Code. A person shall not continue to be an Eligible
Employee because of the payment of compensation following termination of employment whether as part of a severance agreement with the Company or otherwise. 

“FAIR MARKET VALUE” per share of Stock on any relevant date shall be determined in accordance with the following provisions: 

(a) If the Stock is at the time listed on the Nasdaq National Market or the Nasdaq Capital Market, then the Fair Market Value shall be the
closing selling price per share of Stock on the date in question, as such price is reported by the National Association of Securities Dealers on the Nasdaq National Market or the Nasdaq Capital Market and published in The Wall Street Journal. 

(b) If the Stock is at the time listed on any stock exchange, then the Fair Market Value shall be the closing selling price per share of Stock
on the date in question on the stock exchange determined by the Plan Administrator to be the primary market for the Stock, as such price is officially quoted in the composite tape of transactions on such exchange and published in The Wall Street
Journal. 
 (c) If the Stock is not listed on the Nasdaq National Market, Nasdaq Capital Market or a national securities exchange, the Fair
Market Value shall be the average of the closing bid and ask prices of the Stock on that day as reported by the Nasdaq bulletin board or any comparable system on that day. 

(d) If the Stock is not traded included in the Nasdaq bulletin board or any comparable system, the Fair Market Value shall be the of the
closing bid and ask prices on that day as furnished by any member of the National Association of Securities Dealers, Inc. selected from time to time by the Company for that purpose. 

(e) If the date in question is not a trading day, then the Fair Market Value shall be determined based on prices for the trading day prior to
the date in question. 
 “PARTICIPANT” means any Eligible Employee of a Participating Company who is actively participating in the
Plan. 
 “PARTICIPATING COMPANY” means the Company and such Corporate Affiliate or Affiliates as may be authorized from time to
time by the Board to extend the benefits of the Plan to their Eligible Employees. The Participating Companies in the Plan are listed in attached Schedule A. 

  
 2 

 “PERMANENT DISABILITY OR PERMANENTLY DISABLED” shall mean the inability of the
Participant to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment expected to result in death or to be of continuous duration of twelve months or more. 

“STOCK” means shares of the common stock of the Company, par value $.0001 per share. 

III. ADMINISTRATION 
 (a) The Plan shall
be administered by a committee (the “Committee”) consisting of one or more Board members appointed by the Board. Members of the Committee shall serve for such period of time as the Board may determine and shall be subject to removal by the
Board at any time. 
 (b) The Committee is hereby designated as the Plan Administrator and shall have full authority to administer the Plan,
including authority to interpret and construe any provision of the Plan and to adopt such rules and procedures for administering the Plan as it may deem necessary in order to comply with the requirements of Section 423 of the Code. Decisions of
the Plan Administrator shall be final and binding on all parties who have an interest in the Plan. 
 (c) To the maximum extent permitted by
law, the Company shall indemnify each member of the Committee and every other member of the Board, as well as any other employee with duties under the Plan, against all liabilities and expenses (including any amount paid in settlement or in
satisfaction of a judgment) reasonably incurred by the individual in connection with any claims against the individual by reason of the performance of the individual’s duties under the Plan. This indemnity shall not apply, however, if
(i) it is in the action, lawsuit, or proceeding that the individual is guilty of gross negligence or intentional misconduct in the performance of those duties; or (ii) the individual fails to assist the Company in defending against any
such claim. The Company shall have the right to select counsel and to control the prosecution or defense of the suit. The Company shall not be obligated to indemnify any individual for any amount incurred through any settlement or compromise of any
action unless the Company consents in writing to the settlement or compromise. 
 IV. PURCHASE PERIODS 

(a) Stock shall be offered for purchase under the Plan through a series of successive purchase periods until such time as (i) the maximum
number of shares of Stock available for issuance under the Plan shall have been issued pursuant to purchase rights granted under the Plan or (ii) the Plan shall have been sooner terminated in accordance with Article IX. 

(b) Each purchase period shall have a duration of six (6) months. Purchase periods shall commence on the first day of April and October.

 (c) The Participant shall be granted a separate purchase right for each purchase period in which he or she participates. The purchase
right shall be granted on the first business day of the purchase period and shall be automatically exercised on the last business day of the purchase period. 

  
 3 

 (d) Under no circumstances shall any shares of Stock be issued hereunder, until such time as the
Company shall have complied with all applicable requirements of the Securities Act of 1933, as amended, all applicable listing requirements of any securities exchange on which the Stock is listed and all other applicable requirements established by
law or regulation. 
 (e) The acquisition of Stock through participation in the Plan for any purchase period shall neither limit nor require
the acquisition of Stock by the Participant in any subsequent purchase period. 
 V. ELIGIBILITY AND PARTICIPATION 

(a) Each individual who is an Eligible Employee of a Participating Company on the first day of any purchase period may begin participation in
the Plan on the first day of any purchase period following the commencement of his or her employment with the Company or any other Participating Company. 

(b) In order to participate in the Plan for a particular purchase period, an Eligible Employee must complete the enrollment forms prescribed
by the Plan Administrator (including a stock purchase agreement and a payroll deduction authorization) and file such forms with the Plan Administrator (or its designee) during the specified enrollment period for that purchase period. 

(c) The payroll deduction authorized by a Participant for purposes of acquiring Stock under the Plan may be any multiple of $10.00, up to a
dollar maximum not in excess of 20% of the Base Salary paid to the Participant during the purchase period. The deduction rate so authorized shall continue in effect for the entire purchase period, unless the Participant shall, prior to the end of
the purchase period for which the purchase right is in effect, change the rate by filing the appropriate form with the Plan Administrator (or its designee). The changed rate shall become effective as soon as practicable following the filing of such
form. Payroll deductions, however, will automatically cease upon the termination of the Participant’s purchase right in accordance with Section VII(d) or (e) below. 

VI. STOCK SUBJECT TO PLAN 
 (a) The Stock
purchasable by Participants under the Plan shall, solely in the Board’s discretion, be made available from either authorized but unissued Stock or from reacquired Stock, including shares of Stock purchased on the open market. The total number
of shares that may be issued under the Plan shall not exceed 2,850,000 shares (subject to adjustment under subparagraph (b) below). If any outstanding purchase right is terminated for any reason prior to its exercise, the shares allocable to
the purchase right may again become subject to purchase under the Plan. 

  
 4 

 (b) In the event any change is made to the Stock purchasable under the Plan by reason of any
stock dividend, recapitalization, stock split, reverse stock split, combination of shares, recapitalization or other change affecting the outstanding Stock as a class without the Company’s receipt of consideration, appropriate adjustments shall
be made by the Plan Administrator to (i) the class and maximum number of shares issuable over the term of the Plan, (ii) the class and maximum number of shares purchasable per Participant under any one purchase right, and (iii) the
class and number of shares and the price per share in effect under each purchase right at the time outstanding under the Plan. 
 VII. PURCHASE RIGHTS

 Each Eligible Employee who participates in the Plan for a particular purchase period shall have the right to purchase Stock upon the
terms and conditions set forth below and shall execute a purchase agreement embodying such terms and conditions and such other provisions (not inconsistent with the Plan) as the Plan Administrator may deem advisable. 

(a) Purchase Price. The purchase price per share of Stock shall be 95% of the Fair Market Value of a share of Stock on the date the
purchase right is exercised. 
 (b) Number of Purchasable Shares. 

(i) The number of shares of Stock purchasable by a Participant upon the exercise of an outstanding purchase right shall be the number of whole
shares obtained by dividing the amount collected from the Participant through payroll deductions during the purchase period for which such purchase right is outstanding, by the purchase price per share in effect for that purchase period. However,
the maximum number of shares purchasable by any Participant during any one purchase period shall not exceed 1,000 shares (subject to adjustment under Section VI(b)). However, the Plan Administrator shall have the discretionary authority,
exercisable prior to the start of any purchase period under the Plan, to increase or decrease the limitations to be in for the number of shares of Stock purchasable per Participant during that purchase period. 

(ii) Under no circumstances shall purchase rights be granted the Plan to any Eligible Employee if such individual would, after the grant, own
(within the meaning of Code Section 424(d)), or hold outstanding options or other rights to purchase, stock possessing 5% or more of the total combined voting power or value of all classes of stock of the Company or any Corporate Affiliate. For
this purpose an Eligible Employee’s ownership interest shall be determined in accordance with Code Section 424(d), which rules are as follows: 

i. The Eligible Employee is treated as owning any stock owned, directly or indirectly, by: 

(1) Brothers and sisters (whether by whole or half-blood); 

(2) Spouse; and 
 (3) Lineal
descendants and/or ancestors. 

  
 5 

 ii. Stock owned, directly or indirectly, by a corporation, partnership, estate,
or trust is treated as owned proportionately by or for its stockholders, partners, or beneficiaries. 
 iii. Stock that can
be acquired by the exercise of an option is treated as being owned by the Eligible Employee for purposes of determining the number of shares owned by the Eligible Employee, but not for purposes of determining the total number of shares of Stock
outstanding. Options are taken into account for this purpose whether or not they are currently exercisable. 
 (c) Payment. Payment
for the Stock purchased under the Plan shall be effected through the Participant’s authorized payroll deductions. Such deductions shall begin on the first pay day coincident with or immediately following the commencement date of the purchase
period and shall terminate with the pay day ending with or immediately prior to the last business day of such purchase period. The amounts so collected shall be credited to the Participant’s individual account under the Plan, but no interest
shall be paid on the balance from time to time outstanding in the account. The collected amounts shall not be required to be held in any segregated account or trust fund and may be commingled with the Company’s general assets and used for any
corporate purpose. 
 (d) Termination of Purchase Rights. 

(i) A Participant may terminate his or her outstanding purchase right under the Plan by filing the prescribed notification form with the Plan
Administrator (or its designee) at least two business days before the last business day of any purchase period. No further payroll deductions shall be collected from the Participant with respect to such purchase right, and the Participant shall have
the following election with respect to any payroll deductions made by such individual with respect to such purchase right: (A) have the Company refund those payroll deductions or (B) have such payroll deductions held for the purchase of
shares at the end of the purchase period. If no such election is made, then such payroll deductions shall automatically be refunded at the end of such purchase period. Immediately following the refund or purchase of shares, the purchase right shall
terminate. 
 (ii) The request for termination shall be irrevocable with respect to the particular purchase right to which it pertains, and
the Participant may not subsequently rejoin the purchase period covered by such right. 
 (e) Termination of Service. 

(i) Except as set forth in Paragraph VII(e)(ii) below, if a Participant ceases to be an Eligible Employee while his or her purchase right
remains outstanding, then such purchase right shall immediately terminate, and all sums previously collected from the Participant during the purchase period in which such termination occurs shall be refunded (without interest) to the Participant.

  
 6 

 (ii) Should the Participant die or become Permanently Disabled or should the Participant cease
active employment by reason of a leave of absence taken in accordance with the Company’s leave of absence policy, then the Participant (or the person or persons to whom the rights of the deceased Participant under the Plan are transferred by
will or by the laws of descent and distribution) shall have the election, exercisable up until the end of the purchase period in which the Participant dies or becomes Permanently Disabled or in which the leave of absence commences, to
(i) withdraw all the funds credited to the Participant’s account at the time of his or her cessation of employment or at the commencement of such leave or (ii) have such funds held for the purchase of shares at the end of such
purchase period. If no such election is made, then such funds shall automatically be held for the purchase of shares at the end of such purchase period. In no event, however, shall any further payroll deductions added to the Participant’s
account following his or her cessation of employment or the commencement of such leave. Upon the Participant’s return to active employment of twenty (20) hours a week (x) within ninety (90) days following the commencement of such
leave or (y) prior to the expiration of any longer period for which such Participant’s right to reemployment with the Company is guaranteed by statute or contract, his or her payroll deductions under the Plan shall automatically resume at
the rate in effect at the time the leave began, unless the Participant withdraws from the Plan prior to his or her return. An individual who returns to active employment following a leave of absence that exceeds in duration the applicable
(x) or (y) time period will no longer be an Eligible Employee for purposes of subsequent participation in the Plan, will receive a refund (without interest) of the payroll deductions that the Participant made during that purchase period
with respect to such purchase right not previously exercised, and must accordingly re-enroll in the Plan (by making a timely filing of the prescribed enrollment forms) on or before the first day of the new purchase period once he or she qualifies as
an Eligible Employee. 
 (f) Stock Purchase. The Stock subject to the purchase right of each Participant (other than Participants
whose payroll deductions have been refunded in accordance with Section VII(d) or (e) above) shall be automatically purchased on the Participant’s behalf on the last business day of the purchase period. The purchase shall be effected by
applying the amount credited to each Participant’s account on the last business day of the purchase period to the purchase of whole shares of Stock (subject to the limitations on the maximum number of purchasable shares set forth in Section
VII(b)) at the purchase price in effect for such purchase period. Any amount remaining in the Participant’s account after such application shall be refunded. 

(g) Proration of Purchase Rights. Should the total number of shares of Stock that are to be purchased pursuant to outstanding purchase
rights on any particular date exceed the number of shares then available for issuance under the Plan, the Plan Administrator shall make a pro-rata allocation of the available shares on a uniform and nondiscriminatory basis, and any amounts credited
to the accounts of Participants shall, to the extent not applied to the purchase of Stock, be refunded to the Participants. 
 (h) Rights
as Stockholder. A Participant shall have no rights as a stockholder of the Company with respect to shares covered by his or her outstanding purchase right under the Plan until the shares are actually purchased on the Participant’s behalf in
accordance with Section VII(f). No adjustments shall be made for dividends, distributions or other rights for which the record date is prior to the date of such purchase. 

  
 7 

 (i) Assignability. No purchase right granted under the Plan shall be assignable or
transferable by the Participant other than by will or by the laws of descent and distribution following the Participant’s death, and during the Participant’s lifetime the purchase right shall be exercisable only by the Participant. 

(j) Notice of Disqualifying Disposition. A Participant must notify the Company if the Participant disposes of stock acquired pursuant
to the Plan prior to the expiration of the holding periods required to qualify for long-term capital gains treatment on the sale proceeds. 

(k) Merger or Liquidation of Company. In the event the Company or its stockholders enter into an agreement to dispose of all or
substantially all of the assets or outstanding capital stock of the Company by means of a sale, merger, reorganization or similar transaction (other than a reorganization effected primarily to change the State in which the Company is incorporated)
or in the event the Company is liquidated (a “Change in Control”), each outstanding purchase right shall automatically be exercised, immediately prior to the effective date of any Change in Control, by applying the payroll deductions of
each Participant for the purchase period in which such Change in Control occurs to the purchase of whole shares of Stock at a purchase price per share equal to eighty-five percent (85%) of the lower of (i) the Fair Market Value per share
of Stock on the first day of the purchase period in which such Change in Control occurs or (ii) the Fair Market Value per share of Stock immediately prior to the effective date of such Change in Control. However, the applicable limitation on
the number of shares of Stock purchasable per Participant shall continue to apply to any such purchase. Any amount not applied to the purchase of Stock by reason of the Section VII(b) limitation on the maximum number of purchasable shares shall be
refunded. The Company shall use its best efforts to provide at least ten (10) days’ prior written notice of the occurrence of any Change in Control, and Participants shall, following the receipt of such notice, have the right to terminate
their outstanding purchase rights prior to the effective date of the Change in Control. 
 VIII. ACCRUAL LIMITATIONS 

(a) No Participant shall be entitled to accrue rights to acquire Stock pursuant to any purchase right outstanding under the Plan if and to the
extent such accrual, when aggregated with (i) rights to acquire Stock accrued under other purchase rights granted to the Participant under this Plan and (ii) similar rights accrued by the Participant under other employee stock purchase
plans (within the meaning of Code Section 423) of the Company or its Corporate Affiliates, would otherwise permit such Participant to purchase more than $25,000 worth of Stock of the Company or any Corporate Affiliate (determined on the basis
of the Fair Market Value of such stock on the date or dates such rights are granted to the Participant) for each calendar year such rights are at any time outstanding. 

(b) For purposes of applying the accrual limitations of Section VIII(a), the right to acquire Stock pursuant to each purchase right granted
under the Plan shall accrue as follows: 

  
 8 

 (i) The right to acquire Stock under each such purchase right shall accrue when the purchase
right first becomes exercisable on the last business day of the purchase period for which such right is granted. 
 (ii) To the extent the
Participant’s purchase right does not, by reason of the Section VIII(a) limitations, accrue on the last business day of the particular purchase period for which such right is granted, then the payroll deductions that the Participant made during
that purchase period with respect to such purchase right shall be refunded. 
 (c) In the event there is any conflict between the provisions
of this Article VIII and one or more provisions of the Plan or any instrument issued thereunder, the provisions of this Article VIII shall be controlling. 

IX. AMENDMENT AND TERMINATION 
 The Board
may from time to time alter, amend, suspend or discontinue the Plan to become effective immediately following the close of a purchase period; provided, however, the Plan may be amended or terminated immediately upon Board action, if and to the
extent necessary to assure that the Company will not recognize, for financial reporting purposes, any compensation expense in connection with the shares of Stock offered for purchase under the Plan, should the financial accounting rules applicable
to the Plan at the Effective Date be subsequently revised so as to require the Company to recognize compensation expense in the absence of such amendment or termination. The Board may not, without the approval of the Company’s stockholders,
increase the number of shares issuable under the Plan (provided, however, the Plan Administrator shall have the authority to effect adjustments pursuant to Section VI(b) without stockholder approval). 

X. GENERAL PROVISIONS 
 (a) Effective
Date. The Plan became effective on the Effective Date. On June 15, 1992, the Board approved a restatement of the Plan, to be effective as of October 1, 1992. The restatement was approved by the Company’s stockholders at the 1992
Annual Meeting. On May 4, 1994, the Board approved an amendment to the Plan to increase the aggregate number of shares issuable over the term thereof from 100,000 to 150,000 shares. The amendment was approved by the Company’s stockholders
at the 1994 Annual Meeting. In June 1997, the Board approved another amendment to the Plan to increase the aggregate number of shares issuable over the term thereof from 150,000 to 250,000 shares. The amendment was approved by the Company’s
stockholders at the 1997 Annual Meeting. 
 On June 14, 1999, the Company effected a 2-for-1 stock split in the form of a 100 percent
stock dividend distributed to stockholders of record as of May 31, 1999. On May 20, 2001, the Board approved amendments to the Plan to (i) effect certain technical revisions to the provisions of the Plan in order to facilitate the
administration and interpretation of the Plan, (ii) modify the type of amendments to the Plan which require stockholder approval and (iii) extend the termination date of the Plan by ten years to September 30, 2011. The amendments were
approved by the Company’s stockholders at the 2001 Annual Meeting. On August 31, 2001, the Company effected a 3-for-2 stock split in the form of a 50 percent stock dividend distributed to stockholders of record as of August 17, 2001.

  
 9 

 On August 4, 2005, the Board approved amendments to the Plan to (i) avoid compensation
expense charges under Statement of Financial Accounting Standards No. 123 (revised 2004), Accounting for Stock-Based Compensation and (ii) increase the aggregate number of shares issuable over the term of the Plan from 750,000 to
950,000 shares. The amendments were approved by the Company’s stockholders at the 2005 Annual Meeting. On December 8, 2006, the Company effected a 3-for-2 stock split in the form of a 50 percent stock dividend distributed to stockholders
of record as of November 20, 2006. 
 On May 14, 2010, the Board approved amendments to the Plan to (i) remove the
requirement for stockholder approval for modifying eligibility requirements and (ii) extend the termination date of the Plan by ten years from September 30, 2011 to September 30, 2021. The amendments were approved by the
Company’s stockholders at the 2010 Annual Meeting on August 5, 2010, after which the Board approved amendments to the Plan to (i) modify the eligibility requirements to remove the exclusion for Highly Compensated Employees and
(ii) modify the annual statement requirements, all in order to conform to recent changes in law. On June 26, 2013, the Company effected a 2-for-1 stock split in the form of a 100 percent stock dividend distributed to stockholders of record
as of June 12, 2013. All share numbers reflect the stock splits effected by the Company. 
 (b) Termination. The Plan shall
terminate upon the EARLIEST of (i) September 30, 2021, (ii) the date on which all shares available for issuance under the Plan shall have been sold pursuant to purchase rights exercised under the Plan, (iii) the date on which all
purchase rights are exercised in connection with a Change in Control or (iv) termination by the Board. No further purchase rights shall be granted or exercised, and no further payroll deductions shall be collected under the Plan following such
termination. 
 (c) Costs. All costs and expenses incurred in the administration of the Plan shall be paid by the Company; however,
each Plan Participant shall bear all costs and expenses incurred by such individual in the sale or other disposition of any shares purchased under the Plan. 

(d) No Employment Rights. Neither the action of the Company in establishing the Plan, nor any action taken under the Plan by the Board
or the Plan Administrator, nor any provision of the Plan itself shall be construed so as to grant any person the right to remain in the employ of the Company or any of its Corporate Affiliates for any period of specific duration, and such
person’s employment may be terminated at any time, with or without cause. 
 (e) Governing Law. The provisions of the Plan shall
be governed by the laws of the State of California. 

  
 10 

 (f) Annual Statements. To the extent required, the Company shall provide a statement
containing the information required by Code Section 6039(a) to Participants no later than January 31st of the calendar year following prior to the calendar year in which they purchase Stock pursuant to the Plan. This notice shall contain
the following items of information: 
 (i) The name, address, and employer identification number of the corporation transferring the Stock;

 (ii) The name, address, and identifying number of the Participant to whom the share or shares of Stock were transferred; 

(iii) The name and address of the corporation the stock of which is the subject of the option (if other than the corporation transferring the
stock); 
 (iv) The date the option was granted; 

(v) The date the shares were transferred to the person exercising the option; 

(vi) The fair market value of the Stock on the date the option was granted; 

(vii) The fair market value of the Stock at the time the option was exercised; 

(viii) The actual exercise price paid per share of Stock; 

(ix) The exercise price per share of Stock determined as if the option were exercised on the date the option was granted; 

(x) The date the option was exercised; 

(xi) The number of shares of Stock transferred pursuant to the option; 

(xii) The type of option under which the transferred shares were acquired; 

(xiii) The date the legal title of the shares of Stock were transferred by the Participant, if applicable; 

(xiv) The number of shares of Stock to which legal title was transferred by the Participant, if applicable; and 

(xv) The total cost of all the shares. 

  
 11 

 SCHEDULE A 

PARTICIPATING COMPANIES 
 CorVel Corporation, a
Delaware corporation 
 CorVel Healthcare Corporation, a California corporation 

CorVel Enterprise Comp, Inc., a Delaware corporation 

  
 12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00251-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00251-of-00352.parquet"}]]