Document:

EXHIBIT 10.20

 

 

LOCK-UP AND LEAK OUT AGREEMENT

  

This LOCK-UP
AND LEAK-OUT AGREEMENT (the “Agreement”) is made as of _______________, 2013 (the “Effective Date”)
by and between Safety Quick Lighting & Fans Corp., a Florida corporation, (the “Company”), and the undersigned
holder of common stock (the “Stockholder”) of the Company.

 

WHEREAS,
to ensure the development of an orderly trading market in the Company’s common stock, the Company and the undersigned intend
to enter into this Agreement that provides the circumstances under which the undersigned may sell or otherwise dispose of shares
of the Company’s securities; and

 

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

 

1.    
Twenty-Four Month Prohibition on Sales or Transfers. The Stockholder, including the Stockholder’s Affiliated Entities
(as defined below), hereby agrees that for a period of twenty-four (24) months from the date of this Agreement (the “Lock-Up
Period”), the Stockholder will not offer, sell, contract to sell, pledge, give, donate, transfer or otherwise dispose of,
directly or indirectly, any shares of the common stock of the Company owned or controlled by the Stockholder as of the effective
date of this Lock-Up Agreement (the “Lock-Up Shares”), enter into a transaction which would have the same effect, or
enter into any swap, hedge or other arrangement that transfers, in whole or in part, any of the economic or voting consequences
of ownership of such securities, whether any such aforementioned transaction is to be settled by delivery of the Lock-Up Shares
or such other securities, in cash or otherwise, or publicly disclose the intention to make any such offer, sale, pledge or disposition,
or to enter into any such transaction, swap, hedge or other arrangement (the “Lock-Up Agreement”). As used in this
Agreement “Affiliated Entities” shall mean any legal entity, including any corporation, limited liability company,
partnership, not-for-profit corporation, estate planning vehicle or trust, which is directly or indirectly owned or controlled
by the Stockholder or his or her descendants or spouse, of which such Stockholder or his or her descendants or spouse are beneficial
owners, or which is under joint control or ownership with any other person or entity subject to a lock-up agreement regarding the
Common Stock with terms substantially identical to this Agreement.

 

2.     Restrictions
on Sales; Volume Limitations. Beginning the sooner of: (i) ________ 1, 2014 or (ii) immediately upon the effectiveness
of a registration statement as declared by the U.S. Securities and Exchange Commission, in which shares of the Stockholder's
Common Stock have been registered, the Stockholder shall have the right to effect open market sales of his Common Stock in an
aggregate amount equal to ___ multiplied by the total weekly volume, of the Common Stock (“Sellable
Shares”).

 

If during the Lock-Up Period the
Share Price is less than twenty-five cents ($0.25) per share, the Stockholder shall not have the right to effect
any open market sales of his Common Stock during such times that the Share Price is below twenty-five cents ($0.25) per share.

 

If during the Lock-Up Period the
share price of the Common Stock (“Share Price”) exceeds fifty cents ($0.50) per share, the Stockholder shall have the
right to effect open market sales of his Common Stock in an aggregate amount equal to ___ multiplied by the total
weekly volume in the Common Stock, during such time that the Share Price is above fifty cents ($0.50).

 

If during the Lock-Up Period the
Share price exceeds one dollar ($1.00) per share, the Holder shall have the right to effect open market sales of his Common Stock
in an aggregate amount equal to ___ multiplied by the total weekly volume in the Common Stock, only during that time
the Common Stock is trading above one dollar ($1.00) per share.

    	Safety Quick Lighting and Fans Corp. - Lock-Up/Leak-Out Agreement	Page 1 of 5

    	 

    

If during the Lock-Up Period the Share Price exceeds two dollars
($2.00) per share, there shall be no limitations on the amount of Common Stock that may be sold by the Stockholder, during such
time the Share Price is above two dollars ($2.00).

 

The amount of Sellable Shares that
may be sold pursuant to this Section 2, shall rounded up or down, to the nearest one hundred (100) shares. Sellable Share amounts
equaling less than one hundred (100) shares shall be rounded up to equal one hundred shares.

 

By way of example only, if
the Stockholder’s multiplier is equal to 0.02 when the share price is over twenty-five cents ($0.25) and equal to
or less than fifty cents ($0.50), and the total volume of the Common Stock is five hundred and eight thousand (508,000) shares,
the Stockholder shall apply his multiplier (0.02) to five hundred and eight thousand shares generating a product of 10,160
shares, which would be rounded up to 10,200 shares the Stockholder would be eligible to sell during the following week.

 

Sellable Share amounts are not
cumulative. If the Stockholder waives his rights at any time during the Lock-Up Period, pursuant to this Section 2 (“Waivable
Period”), the calculated Sellable Share amounts for those Waivable Periods shall not be accrued or added to Sellable Shares
amounts in a future period.

 

3.   Application of
this Agreement to Shares Sold or Otherwise Transferred. So long as such sales or other Transfers are made in compliance
with the requirements of this Agreement, Lock-Up Shares sold in the public market shall thereafter NOT be subject to the
restrictions on sale or other Transfer contained in this Agreement.  Lock-Up Shares sold or otherwise Transferred
in private sales or other Transfers pursuant to an Option shall thereafter Not be subject to the restrictions on sale or
other Transfer contained in this Agreement.

 

4. Short
Sales. The Stockholder may not, directly or indirectly, engage in short sales of the
Company’s common stock (a “short sale against the box”) during the Lock-Up Period. A short sale, as defined in
this Agreement, means any transaction whereby the Stockholder sells shares of the Company’s common stock and satisfies the
settlement thereof by borrowing such shares from a third party.

 

5. Attempted
Transfers. Any attempted or purported sale or other Transfer of any Lock-Up Shares by the Stockholder in violation or contravention
of the terms of this Agreement shall be null and void ab initio. The Company shall instruct its transfer agent to, reject
and refuse to transfer on its books any Lock-Up Shares that may have been attempted to be sold or otherwise Transferred in violation
or contravention of any of the provisions of this Agreement and shall not recognize any person or entity. 

 

6. Broker
and Account Verification. The Stockholder agrees and consents to (i) effect sales of the Lock-Up Shares through a broker approved
by the Company’s board of directors, (ii) the entry of stop transfer instructions with the Company's transfer agent against
the transfer of the Securities held by the undersigned except in compliance with this Lock and Leak-Out Agreement.

 

7. Broker
Authorization. The Stockholder hereby authorizes any and all brokers, for all accounts holding the Stockholder’s Lock-Up
Shares, to provide directly to the Company, immediately upon the Company’s request, a copy of all account statements showing
the Lock-Up Shares and all trading activity in the Lock-Up Shares during the Lock-Up Period.

 

8. Waiver
of Claims. The Stockholder hereby irrevocably waives any and all known or unknown claims and rights, whether direct or indirect,
fixed or contingent, that the Stockholder may now have or that may hereafter arise against the Company or any of its affiliates,
or any of its respective officers, directors, stockholders, employees, agents, attorneys or advisors arising out of the negotiation,
documentation of this Agreement.

 

9. Acknowledgement
of Representation. The Stockholder represents and warrants to the Company that the Stockholder was or had the opportunity to
be represented by legal counsel and other advisors selected by Stockholder in connection with this Agreement. The Stockholder has
reviewed this Agreement with his, her or its legal counsel and other advisors and understands the terms and conditions hereof.

    	Safety Quick Lighting and Fans Corp. - Lock-Up/Leak-Out Agreement	Page 2 of 5

    	 

    

10. Legends on Certificates. All
Lock-Up Shares now or hereafter owned by the Stockholder, except any shares purchased in open market transactions by
Stockholders that are not affiliates (as such term is defined under securities laws) of the Company, shall be subject to the
provisions of this Agreement and the certificates representing such Lock-Up Shares shall bear the following legends:

 

THE SECURITIES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE
SECURITIES LAWS. THEY MAY NOT BE SOLD, ASSIGNED, PLEDGED OR OTHERWISE TRANSFERRED FOR VALUE UNLESS THEY ARE REGISTERED UNDER THE
ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR UNLESS THE CORPORATION RECEIVES AN OPINION OF COUNSEL SATISFACTORY TO IT, OR OTHERWISE
SATISFIES ITSELF, THAT AN EXEMPTION FROM REGISTRATION IS AVAILABLE.

 

THE SALE, ASSIGNMENT, GIFT,
BEQUEST, TRANSFER, DISTRIBUTION, PLEDGE, HYPOTHECATION OR OTHER ENCUMBRANCE OR DISPOSITION OF THE SHARES REPRESENTED BY THIS CERTIFICATE
IS RESTRICTED BY AND MAY BE MADE ONLY IN ACCORDANCE WITH THE TERMS OF A LOCK-UP AGREEMENT, A COPY OF WHICH MAY BE EXAMINED AT THE
OFFICE OF THE CORPORATION.

 

11. Governing
Law; Venue. This Agreement will be governed as to validity, interpretation, construction, effect and in all other respects
by the internal laws of the State of Delaware, without regard to the conflict of laws principles thereof. Each of the Parties:
(i) agrees that any legal suit, action or proceeding arising out of or relating to this Agreement will be instituted exclusively
in the Courts located in the County of Dade, in the State of Florida, or in the United States District Court located in Miami,
Florida, (ii) waives any objection that if may have or hereafter to the venue of any such suit, action or proceeding, and (iii)
irrevocably consents to the jurisdiction of the Courts located in the County of Dade, in the State of Florida, or in the United
States District Court located in Miami, Florida in any such suit, action or proceeding.

 

12. Binding
Effect. This Agreement will be binding upon and inure to the benefit of the Company, its successors and assigns and to the
Stockholder and their respective permitted heirs, personal representatives, successors and assigns.

 

13. Entire
Understanding. This Agreement sets forth the entire agreement and understanding of the parties hereto in respect of the subject
matter hereof and the transactions contemplated hereby and supersedes all prior written and oral agreements, arrangements and understandings
relating to the subject matter hereof.  This Agreement may not be changed orally, but may only be changed by an agreement
in writing signed by the party against whom enforcement of any waiver, change, modification or discharge is sought.

 

14. Remedies.
The parties hereto acknowledge that money damages are not an adequate remedy for violations of this Agreement and that any party
may, in such party’s sole discretion, apply to any court of competent jurisdiction for specific performance or injunctive
relief or such other relief as such court may deem just and proper in order to enforce this Agreement or prevent any violation
hereof and, to the extent permitted by applicable law, each party hereto waives any objection to the imposition of such relief.
All rights, powers and remedies provided under this Agreement or otherwise available in respect hereof, whether at law or in equity,
shall be cumulative and not alternative, and the exercise or beginning of the exercise of any thereof by any party hereto shall
not preclude the simultaneous or later exercise of any other such right, power or remedy by such party.

 

15. Counterparts.
This Agreement may be executed by facsimile and in any number of counterparts, each of which shall be deemed to be an original,
but all of which together shall constitute one and the same instrument. Each counterpart may consist of a number of copies each
signed by less than all, but together signed by all, of the parties hereto.

 

 

 

 

 

 

 

    	Safety Quick Lighting and Fans Corp. - Lock-Up/Leak-Out Agreement	Page 3 of 5

    	 

    

IN
WITNESS WHEREOF, this Agreement has been signed as of the date first above written.

 

 

SAFETY QUICK LIGHTING
& FANS CORP.

 

By: _________________________________      

 

James R. Hills    

President & CEO

 

 

 

 

 

 

 

 

 

 

****************** Investor Signature Page Follows *********************

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	Safety Quick Lighting and Fans Corp. - Lock-Up/Leak-Out Agreement	Page 4 of 5

    	 

    

IN WITNESS WHEREOF, the undersigned have
caused this Lock-Up Leak-Out Agreement to be duly executed by their respective authorized signatories as of the date first indicated
above.

 

	Name of Stockholder:	 	 
	 	 	 
	Number of Shares:	 	 
	 	 	 
	Signature of Authorized Signatory of Stockholder: 	 	 
	 	 	 
	Name of Authorized Signatory: 	 	 
	 	 	 
	Title of Authorized Signatory:  	 	 
	 	 	 
	Telephone Number of Stockholder:  	 	 
	 	 	 
	Email Address of Stockholder:	 	 
	 	 	 
	Facsimile Number of Stockholder:	 	 
	 	 	 
	Address for Notice of Stockholder: 	 	 
	 	 	 
	 	 	 
	 	 	 
	Address for Delivery of Shares for Stockholder	 	 
	(if not same as address for notice):	 	 
	 	 	 

  

STOCKHOLDER’S SPOUSE (if and as
applicable):

 

The undersigned
spouse of the Stockholder has read and hereby approves the foregoing Agreement and agrees to be irrevocably bound by the Agreement
and further agrees that any community property interest shall be similarly bound by the Agreement. I hereby irrevocably appoint
my spouse as my attorney-in-fact with respect to any amendment or exercise of any rights under the Agreement.

 

	Signature:	 	 
	 	 	 
	Name:	 	 
	 	 	 
	Signature of Authorized Signatory of Spouse:	 	 

 

 

 

 

 

 

 

 

 

 

 

 

    	Safety Quick Lighting and Fans Corp. - Lock-Up/Leak-Out Agreement	Page 5 of 5EX-10.1

 Exhibit 10.1 

TRANSDIGM GROUP INCORPORATED 

2014 STOCK OPTION PLAN 

1. Purpose. 
 The
purpose of the Plan is to assist the Company in attracting, retaining, motivating and rewarding certain key employees, officers, directors and consultants of the Company and its Affiliates, and promoting the creation of long-term value for
stockholders of the Company by closely aligning the interests of such individuals with those of such stockholders. The Plan authorizes the award of Options to Eligible Persons to encourage such persons to expend their maximum efforts in the creation
of stockholder value. 
 2. Definitions. 

For purposes of the Plan, the following terms shall be defined as set forth below: 

(a) “Affiliate” means, with respect to any entity, any other entity that, directly or indirectly through one or more
intermediaries, controls, is controlled by or is under common control with, such entity. 
 (b) “Applicable Laws” means
the requirements related to or implicated by the administration or the Plan under applicable state corporate law, federal and statute securities laws, the Code, any stock exchange or quotation system on which the shares of Stock are listed or quoted
and the applicable laws of any foreign country or jurisdiction where Options are granted under the Plan. 
 (c) “Board”
means the Board of Directors of the Company. 
 (d) “Cause” means, in the absence of any employment agreement between a
Participant and the Employer otherwise defining Cause, (i) acts of personal dishonesty, gross negligence or willful misconduct on the part of a Participant in the course of his or her employment or services; (ii) a Participant’s
engagement in conduct that results, or could be reasonably expected to result, in material injury to the reputation or business of the Company or its Affiliates; (iii) misappropriation by a Participant of the assets or business opportunities of
the Company or its Affiliates; (iv) embezzlement or fraud committed by a Participant, at his or her direction, or with his or her personal knowledge; (v) a Participant’s conviction by a court of competent jurisdiction of, or pleading
“guilty” or “no contest” to, (x) a felony, or (y) any other criminal charge (other than minor traffic violations) that has, or could be reasonably expected to have, an adverse impact on the performance of the
Participant’s duties to the Company or its Affiliates; or (vi) failure by a Participant to follow the lawful directions of a superior officer or the Board. If there is an employment agreement between a Participant and the Employer defining
Cause, “Cause” shall have the meaning provided in such agreement. Unless an applicable employment agreement otherwise provides, the Committee, in its absolute discretion, will determine the effect of all matters on questions relating to
whether a Participant has been discharged for Cause. 
 (e) “Change in Control” means: 

(i) A change in ownership or control of the Company effected through a transaction or series of transactions (other than
an offering of Stock to the general public through a registration statement filed with the Securities and Exchange Commission) whereby any “person” or related “group” of “persons” (as such terms are used in Sections
13(d) and 14(d)(2) of the Exchange Act) (other than the Company or any of its Affiliates, or an employee benefit plan maintained by the Company or any of its Affiliates) directly or indirectly acquires beneficial ownership (within the meaning of
Rule 13d-3 under the Exchange Act) of securities of the Company possessing more than fifty percent (50%) of the total combined voting power of the Company’s securities outstanding immediately after such acquisition; 

(ii) Individuals who, as of the Effective Date, constitute the Board (the “Incumbent Board”), cease for
any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s stockholders, was approved by a vote
of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent 

 
Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or
removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a person other than the Board; or 

(iii) the sale or disposition, in one or a series of related transactions, of all or substantially all of the assets of
the Company to any “person” or “group” (as such terms are defined in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) other than the Company’s Affiliates. 

(f) “Code” means the Internal Revenue Code of 1986, as amended from time to time, including regulations thereunder and
successor provisions and regulations thereto. 
 (g) “Committee” means the Board or such other committee appointed by
the Board consisting of two or more individuals. 
 (h) “Company” means TransDigm Group Incorporated, a Delaware
corporation. 
 (i) “Disability” means, in the absence of any employment agreement between a Participant and the
Employer otherwise defining Disability, the permanent and total disability of a person within the meaning of Section 22(e)(3) of the Code. If there is an employment agreement between a Participant and the Employer defining Disability,
“Disability” has the meaning provided in such agreement. 
 (j) “Disqualifying Disposition” means any
disposition (including any sale) of Stock acquired by exercise of an Incentive Stock Option made within the period that is (i) two years after the date the Participant was granted the Incentive Stock Option or (ii) one year after the date
the Participant acquired Stock by exercising the Incentive Stock Option. 
 (k) “Effective Date” shall mean the date
this Plan is adopted by the Board of Directors. 
 (l) “Eligible Person” means (i) each employee of the Company or
of any of its Affiliates, including each such person who may also be a director of the Company and/or its Affiliates; (ii) each non-employee director of the Company and/or its Affiliates; (iii) each other person who provides substantial
consulting or advisory services to the Company and/or its Affiliates and who is designated as eligible by the Committee; and (iv) any person who has been offered employment by the Company or its Affiliates; provided, that such prospective
employee may not receive any payment or exercise any right relating to an Option until such person has commenced employment with the Company or its Affiliates. An employee on an approved leave of absence may be considered as still in the employ of
the Company or its Affiliates for purposes of eligibility for participation in the Plan. 
 (m) “Employer” means either
the Company or an Affiliate of the Company that the Participant (determined without regard to any transfer of an Option) is principally employed by or provides services to, as applicable. 

(n) “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, including rules thereunder
and successor provisions and rules thereto. 
 (o) “Expiration Date” means the date upon which the term of an Option
expires, as determined under Section 5(b). 
 (p) “Fair Market Value” means (i) if the Stock is listed on a
national securities exchange, the closing price reported on the primary exchange with which the Stock is listed and traded on the date of grant, or if there is no such sale on that date, then on the last preceding date on which such a sale was
reported, or (ii) if the Stock is not listed on any national securities exchange but is listed on the Nasdaq National Market System, the last sale price reported on the date of grant, or, if there is no such sale on that date then on the last
preceding date on which such a sale was reported. If the Stock is not listed on a national securities exchange or the Nasdaq National Market System, the Fair Market Value means the amount determined by the Board in good faith to be the fair
market value per share of Stock, on a fully diluted basis. 

 (q) “Incentive Stock Option” means an Option intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder. 

(r) “Nonqualified Stock Option” means an Option not intended to qualify as an Incentive Stock Option. 

(s) “Option” means a conditional right, granted to a Participant under Section 5, to purchase Stock at a specified
price during specified time periods. Options under the Plan may be Incentive Stock Options or Nonqualified Stock Options. 

(t) “Option Agreement” means a written agreement between the Company and a Participant evidencing the terms and
conditions of an individual Option grant. 
 (u) “Participant” means an Eligible Person who has been granted an Option
under the Plan, or if applicable, such other person or entity who holds an Option. 
 (v) “Plan” means this TransDigm
Group Incorporated 2014 Stock Incentive Plan. 
 (w) “Qualified Member” means a member of the Committee who is a
“Non-Employee Director” within the meaning of Rule 16b-3 and an “outside director” within the meaning of Regulation 1.162-27(c) under Code Section 162(m). 

(x) “Securities Act” means the Securities Act of 1933, as amended from time to time, including rules thereunder and
successor provisions and rules thereto. 
 (y) “Stock” means the Company’s common stock, $0.01 par value, and such
other securities as may be substituted for Stock pursuant to Section 8. 
 3. Administration. 

(a) Authority of the Committee. Except as otherwise provided below, the Plan shall be administered by the Committee. The Committee
has full and final authority, in each case subject to and consistent with the provisions of the Plan, to (i) select Eligible Persons to become Participants; (ii) grant Options; (iii) determine the type, number of shares of Stock
subject to, and other terms and conditions of, and all other matters relating to, Options; (iv) prescribe Option agreements (which need not be identical for each Participant) and rules and regulations for the administration of the Plan;
(v) construe and interpret the Plan and Option agreements and correct defects, supply omissions, or reconcile inconsistencies therein; and (vi) make all other decisions and determinations as the Committee may deem necessary or advisable
for the administration of the Plan. The foregoing notwithstanding, the Board shall perform the functions of the Committee for purposes of granting Options under the Plan to non-employee directors. In any case in which the Board is performing a
function of the Committee under the Plan, each reference to the Committee herein shall be deemed to refer to the Board, except where the context otherwise requires. Any action of the Committee shall be final, conclusive and binding on all persons,
including, without limitation, the Company, its Affiliates, Eligible Persons, Participants and beneficiaries of Participants. 

(b) Manner of Exercise of Committee Authority. At any time that a member of the Committee is not a Qualified Member,
(i) any action of the Committee relating to an Option intended by the Committee to qualify as “performance-based compensation” within the meaning of Section 162(m) of the Code and regulations thereunder may be taken by a
subcommittee, designated by the Committee or the Board, composed solely of two or more Qualified Members; and (ii) any action relating to an Option granted or to be granted to a Participant who is then subject to Section 16 of the Exchange
Act in respect of the Company may be taken either by such a subcommittee or by the Committee but with each such member who is not a Qualified Member abstaining or recusing himself or herself from such action; provided, that upon such abstention or
recusal, the Committee remains composed of two or more Qualified Members. Such action, authorized by such a subcommittee or by the Committee upon the abstention or recusal of such non-Qualified Member(s), shall be the action of the Committee for
purposes of the Plan. The express grant of any specific power to the Committee, and the taking of any action by the Committee, shall not be construed as limiting any power or authority of the Committee. 

 (c) Delegation. The Committee may delegate to officers or employees of the Company or
any of its Affiliates, or committees thereof, the authority, subject to such terms as the Committee shall determine, to perform such functions, including but not limited to administrative functions, as the Committee may determine appropriate. The
Committee may appoint agents to assist it in administering the Plan. Notwithstanding the foregoing or any other provision of the Plan to the contrary, any Option granted under the Plan to (i) any person who is an “insider” within the
meaning of Section 16 of the Exchange Act or (ii) any person or entity who is not an employee of the Company or any of its Affiliates shall be expressly approved by the Committee. 

(d) Section 409A. The Committee shall take into account compliance with Section 409A of the Code in connection with any
grant of an Option under the Plan, to the extent applicable. 
 4. Shares Available Under the Plan. 

(a) Number of Shares Available for Delivery. Subject to adjustment as provided in Section 8, the total number of shares of
Stock reserved and available for delivery in connection with Options under the Plan is 5,000,000. Shares of Stock delivered under the Plan shall consist of authorized and unissued shares or previously issued shares of Stock reacquired by the Company
on the open market or by private purchase. 
 (b) Share Counting Rules. The Committee may adopt reasonable counting procedures to
ensure appropriate counting, avoid double counting (as, for example, in the case of tandem or substitute awards) and make adjustments if the number of shares of Stock actually delivered differs from the number of shares previously counted in
connection with an Option. To the extent that an Option expires or is canceled, forfeited, settled in cash or otherwise terminated without a delivery to the Participant of the full number of shares to which the Option related, the undelivered shares
will again be available for grant. 
 (c) 162(m) Limitation. Subject to the provisions of Section 8, no Employee shall be
eligible to be granted Options covering more than 1,500,000 shares of Stock during any calendar year. This subsection (c) shall not apply until the earliest date required by Section 162(m) of the Code and the rules and regulations
promulgated thereunder. 
 5. Options. 

(a) General. Options may be granted to Eligible Persons in such form and having such terms and conditions as the Committee shall
deem appropriate; provided, however, that Incentive Stock Options may only be granted to Eligible Persons who are employed by the Employer and in accordance with Section 5(h). The provisions of separate Options shall be set forth in an Option
Agreement, which agreements need not be identical. 
 (b) Term. The term of each Option shall be set by the Committee at the time
of grant; provided, however, that no Option granted hereunder shall be exercisable after the expiration of ten (10) years from the date it was granted. 

(c) Exercise Price. The exercise price per share of Stock for each Option shall be set by the Committee at the time of grant but
shall not be less than the Fair Market Value of a share of Stock on the date of grant. 
 (d) Payment for Stock. Payment for
shares of Stock acquired pursuant to Options granted hereunder shall be made in full, upon exercise of the Options and paid, to the extent permitted by applicable statutes and regulations: (a) in immediately available funds in United States
dollars, or by certified or bank cashier’s check at the time the option is exercised; (ii) by surrender to the Company of shares of Stock that (A) have been held by the Participant for at least six-months (or such longer or shorter
period of time required to avoid a charge to earnings for financial accounting purposes), or (B) were acquired from a person other than the Company (i.e., a stock-for-stock exchange); (iii) a “cashless” exercise program
established with a broker selected by the Company; or (iv) at the discretion of the Committee, (A) by reduction in the number of shares of Common Stock otherwise deliverable upon 

 
exercise of such Option with a Fair Market Value equal to the aggregate Option Exercise Price at the time of exercise or (B) in any other form of legal consideration that may be acceptable
to the Committee; or (v) by any combination of the foregoing methods. Anything herein to the contrary notwithstanding, the Company shall not directly or indirectly extend or maintain credit, or arrange for the extension of credit, in the form
of a personal loan to or for any director or executive officer of the Company through the Plan in violation of Section 402 of the Sarbanes-Oxley Act of 2002 (“Section 402 of SOX”), and to the extent that any form of payment
would, in the opinion of the Company’s counsel, result in a violation of Section 402 of SOX, such form of payment shall not be available. 

(e) Vesting. Options shall vest and become exercisable in such manner, on such date or dates, or upon the achievement of
performance or other conditions, in each case, as may be determined by the Committee and set forth in the Option Agreement; provided, however, that notwithstanding any such vesting dates, the Committee may in its sole discretion accelerate the
vesting of any Option, which acceleration shall not affect the terms and conditions of any such Option other than with respect to vesting. Unless otherwise specifically determined by the Committee, the vesting of an Option shall occur only while the
Participant is employed or rendering services to the Employer, and all vesting shall cease upon a Participant’s termination of employment or services with the Employer for any reason. If an Option is exercisable in installments, such
installments or portions thereof that become exercisable shall remain exercisable until the Option expires. 
 (f) Transferability of
Options. An Incentive Stock Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Participant only by the Participant. Nonqualified Stock Options may be
transferable to the extent provided in the Option Agreement or otherwise determined by the Committee. 
 (g) Termination of
Employment or Service. Except as may otherwise be provided by the Committee in the Option Agreement or otherwise: 

(i) If prior to the Expiration Date, a Participant’s employment or service, as applicable, with the Employer
terminates for any reason other than (A) by the Employer for Cause, or (B) by reason of the Participant’s death or Disability, (1) all vesting with respect to the Options shall cease, (2) any unvested Options shall expire as
of the date of such termination, and (3) any vested Options shall remain exercisable until the earlier of the Expiration Date or the date that is six (6) months after the date of such termination. 

(ii) If prior to the Expiration Date, a Participant’s employment or service, as applicable, with the Employer
terminates by reason of such Participant’s death or Disability, (A) all vesting with respect to the Options shall cease, (B) any unvested Options shall expire as of the date of such termination, and (C) any vested Options shall
expire on the earlier of the Expiration Date or the date that is twelve (12) months after the date of such termination due to death or Disability of the Participant. In the event of a Participant’s death, the Options shall remain
exercisable by the person or persons to whom a Participant’s rights under the Options pass by will or the applicable laws of descent and distribution until its expiration, but only to the extent the Options were vested by such Participant at
the time of such termination due to death. 
 (iii) If prior to the Expiration Date, a Participant’s employment or
service, as applicable, with the Employer is terminated by the Employer for Cause, all Options (whether or not vested) shall immediately expire as of the date of such termination. 

(h) Special Provisions Applicable to Incentive Stock Options. 

(i) No Incentive Stock Option may be granted to any Participant who, at the time the option is granted, owns directly, or
indirectly within the meaning of Section 424(d) of the Code, stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of any parent or subsidiary thereof, unless such Option
(A) has an exercise price of at least one hundred ten percent (110%) of the Fair Market Value on the date of the grant of such Option; and (B) cannot be exercised more than five (5) years after the date it is granted. 

 (ii) To the extent the aggregate Fair Market Value (determined as of the
date of grant) of Stock for which Incentive Stock Options are exercisable for the first time by any Participant during any calendar year (under all plans of the Company and its Affiliates) exceeds $100,000, such excess Incentive Stock Options shall
be treated as Nonqualified Stock Options. 
 (iii) Each Participant who receives an Incentive Stock Option must agree to
notify the Company in writing immediately after the Participant makes a Disqualifying Disposition of any Stock acquired pursuant to the exercise of an Incentive Stock Option. 

6. Adjustment for Recapitalization, Merger, etc. 

(a) Capitalization Adjustments. The aggregate number of shares of Stock that may be granted or purchased pursuant to Options
granted hereunder, the number of shares that may be granted or purchased pursuant to Options in any calendar year, the number of shares of Stock covered by each outstanding Option, and the price per share thereof in each such Option shall be
equitably and proportionally adjusted or substituted, as determined by the Committee, as to the number, price or kind of a share of Stock or other consideration subject to such Options (i) in the event of changes in the outstanding Stock or in
the capital structure of the Company by reason of stock dividends, stock splits, reverse stock splits, recapitalizations, reorganizations, mergers, consolidations, combinations, exchanges, or other relevant changes in capitalization occurring after
the date of grant of any such Option; or (ii) in the event of any change in applicable laws or any change in circumstances that results in or would result in any substantial dilution or enlargement of the rights granted to, or available for,
Participants in the Plan. 
 (b) Corporate Events. Notwithstanding the foregoing, except as may otherwise be provided in an
Option agreement, in the event of (i) a merger or consolidation involving the Company in which the Company is not the surviving corporation; (ii) a merger or consolidation involving the Company in which the Company is the surviving
corporation but the holders of shares of Stock receive securities of another corporation and/or other property, including cash; (iii) a Change in Control; or (iv) the reorganization or liquidation of the Company (each, a “Corporate
Event”), in lieu of providing the adjustment set forth in subsection (a) above, the Committee may, in its discretion, “cash-out” vested and/or unvested Options by providing that such vested and/or unvested Options shall be
cancelled as of the consummation of such Corporate Event, and that holders of Options will receive a payment in respect of cancellation of their Options based on the amount of the per share consideration being paid for the Stock in connection with
such Corporate Event, less, in the case of Options and other Options subject to exercise, the applicable exercise price; provided, however, that holders of “performance vested” Options shall only be entitled to consideration in respect of
cancellation of such Options to the extent that applicable performance criteria are achieved prior to or as a result of such Corporate Event, and shall not otherwise be entitled to payment in consideration of cancelled unvested Options. Payments to
holders pursuant to the preceding sentence shall be made in cash, or, in the sole discretion of the Committee, in such other consideration necessary for a holder of an Option to receive property, cash or securities as such holder would have been
entitled to receive upon the occurrence of the transaction if the holder had been, immediately prior to such transaction, the holder of the number of shares of Stock covered by the Option at such time. 

(c) Fractional Shares. Any such adjustment may provide for the elimination of any fractional share that might otherwise become
subject to an Option. 
 7. Use of Proceeds. 

The proceeds received from the sale of Stock pursuant to the Plan shall be used for general corporate purposes. 

 

 8. Rights and Privileges as a Stockholder. 

Except as otherwise specifically provided in the Plan, no person shall be entitled to the rights and privileges of stock ownership in respect
of shares of Stock that are subject to Options hereunder until such shares have been issued to that person. 
 9. Employment or
Service Rights. 
 No individual shall have any claim or right to be granted an Option under the Plan or, having been selected for the
grant of an Option, to be selected for a grant of any other Option. Neither the Plan nor any action taken hereunder shall be construed as giving any individual any right to be retained in the employ or service of the Company or an Affiliate of the
Company. 
 10. Compliance with Laws. 

The obligation of the Company to deliver Stock upon vesting and/or exercise of any Option shall be subject to all applicable laws, rules, and
regulations, and to such approvals by governmental agencies as may be required. Notwithstanding any terms or conditions of any Option to the contrary, the Company shall be under no obligation to offer to sell or to sell and shall be prohibited from
offering to sell or selling any shares of Stock pursuant to an Option unless such shares have been properly registered for sale pursuant to the Securities Act with the Securities and Exchange Commission or unless the Company has received an opinion
of counsel, satisfactory to the Company, that such shares may be offered or sold without such registration pursuant to an available exemption therefrom and the terms and conditions of such exemption have been fully complied with. The Company shall
be under no obligation to register for sale or resale under the Securities Act any of the shares of Stock to be offered or sold under the Plan or any shares of Stock issued upon exercise or settlement of Options. If the shares of Stock offered for
sale or sold under the Plan are offered or sold pursuant to an exemption from registration under the Securities Act, the Company may restrict the transfer of such shares and may legend the Stock certificates representing such shares in such manner
as it deems advisable to ensure the availability of any such exemption. 
 11. Withholding Obligations. 

As a condition to the vesting and/or exercise of any Option, the Committee may require that a Participant satisfy, through deduction or
withholding from any payment of any kind otherwise due to the Participant, or through such other arrangements as are satisfactory to the Committee, the minimum amount of all Federal, state and local income and other taxes of any kind required or
permitted to be withheld in connection with such vesting and/or exercise. The Committee, in its discretion, may permit shares of Stock to be used to satisfy tax withholding requirements and such shares shall be valued at their Fair Market Value as
of the settlement date of the Option; provided, however, that the aggregate Fair Market Value of the number of shares of Stock that may be used to satisfy tax withholding requirements may not exceed the minimum statutory required
withholding amount with respect to such Option. 
 13. Amendment of the Plan or Options. 

(a) Amendment of Plan. The Board at any time, and from time to time, may amend the Plan; provided, however, that, except as
contemplated by Section 6,,no amendment shall be effective unless approved by the stockholders of the Company to the extent stockholder approval is necessary to satisfy any Applicable Laws. At the time of such amendment, the Board shall
determine, upon advice of counsel, whether such amendment will be contingent on stockholder approval. 
 (b) Amendment of
Options. The Committee, at any time, and from time to time, may amend the terms of any one or more Option awards; provided, however, that the rights under any Option shall not be impaired by any such amendment unless the Participant consents in
writing. 
 14. Termination or Suspension of the Plan. 

The Board may suspend or terminate the Plan at any time. Unless sooner terminated, the Plan shall terminate on the day before the tenth (10th) anniversary of the Effective Date. No Options may be granted under the Plan while the Plan is suspended or after it is terminated. 

 15. Effective Date of the Plan. 

The Plan is effective as of the date of adoption by the Board of Directors. 

16. Miscellaneous. 

(a) Participants Outside of the United States. The Committee may modify the terms of any Option under the Plan made to or held by a
Participant who is then a resident or primarily employed outside of the United States in any manner deemed by the Committee to be necessary or appropriate in order that such Option shall conform to laws, regulations and customs of the country in
which the Participant is then a resident or primarily employed, or so that the value and other benefits of the Option to the Participant, as affected by foreign tax laws and other restrictions applicable as a result of the Participant’s
residence or employment abroad, shall be comparable to the value of such Option to a Participant who is a resident or primarily employed in the United States. An Option may be modified under this Section 17(a) in a manner that is inconsistent
with the express terms of the Plan, so long as such modifications will not contravene any applicable law or regulation or result in actual liability under Section 16(b) of the Exchange Act for the Participant whose Option is modified. 

(b) No Liability of Committee Members. No member of the Committee shall be personally liable by reason of any contract or other
instrument executed by such member or on his or her behalf in his or her capacity as a member of the Committee nor for any mistake of judgment made in good faith, and the Company shall indemnify and hold harmless each member of the Committee and
each other employee, officer or director of the Company to whom any duty or power relating to the administration or interpretation of the Plan may be allocated or delegated, against any cost or expense (including counsel fees) or liability
(including any sum paid in settlement of a claim) arising out of any act or omission to act in connection with the Plan unless arising out of such person’s own fraud or willful bad faith; provided, however, that approval of the
Board shall be required for the payment of any amount in settlement of a claim against any such person. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under
the Company’s certificate or articles of incorporation or by-laws, each as may be amended from time to time, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless. 

(c) Payments Following Accidents or Illness. If the Committee finds that any person to whom any amount is payable under the Plan is
unable to care for his or her affairs because of illness or accident, or is a minor, or has died, then any payment due to such person or his or her estate (unless a prior claim therefor has been made by a duly appointed legal representative) may, if
the Committee so directs the Company, be paid to his or her spouse, child, relative, an institution maintaining or having custody of such person, or any other person deemed by the Committee to be a proper recipient on behalf of such person otherwise
entitled to payment. Any such payment shall be a complete discharge of the liability of the Committee and the Company therefor. 

(d) Governing Law. The Plan shall be governed by and construed in accordance with the internal laws of the State of Delaware
without reference to the principles of conflicts of laws thereof. 
 (e) Funding. No provision of the Plan shall require the
Company, for the purpose of satisfying any obligations under the Plan, to purchase assets or place any assets in a trust or other entity to which contributions are made or otherwise to segregate any assets, nor shall the Company maintain separate
bank accounts, books, records or other evidence of the existence of a segregated or separately maintained or administered fund for such purposes. Participants shall have no rights under the Plan other than as unsecured general creditors of the
Company, except that insofar as they may have become entitled to payment of additional compensation by performance of services, they shall have the same rights as other employees under general law. 

(f) Reliance on Reports. Each member of the Committee and each member of the Board shall be fully justified in relying, acting or
failing to act, and shall not be liable for having so relied, acted or failed to act in good faith, upon any report made by the independent public accountant of the Company and its Affiliates and upon any other information furnished in connection
with the Plan by any person or persons other than such member. 

 (g) Titles and Headings. The titles and headings of the sections in the Plan are for
convenience of reference only, and in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control. 

(h) Clawback. Notwithstanding any other provisions in the Plan, Options will be subject to such deduction and clawback recovery as may
be required by Applicable Laws.

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