Document:

EXHIBIT 10.5

 Exhibit 10.5 
 EXCLUSIVE OPTION AGREEMENT 
 BETWEEN 

WUHAN FENGXIN AGRICULTURAL AND TECHNOLOGY DEVELOPMENT CO., LTD. 
 AND 
 WANG KAIYING 
 LI HANYING 
 ZHANG XIN 
 WUHAN FENGZE AGRICULTURAL AND TECHNOLOGY DEVELOPMENT CO., LTD. 
 Dec 1st, 2009 
 WUHAN, CHINA 

 EXCLUSIVE OPTION AGREEMENT 
 This Exclusive Option Agreement (the “Agreement”) is entered into as of Dec 1st, 2009 between the following Parties in Wuhan. 
 Party A: 
 Wuhan Fengxin Agricultural and
Technology Development Co., Ltd. 
 Registered Address: Room 1518, Xinhongji Garden, 6 Qiuchang Street Jiangan District, Wuhan, Hubei
Legal 
 Representative: Ms. LI Hanying 
 Party B: 
 1. WANG Kaiying, a citizen of PRC with ID Card number
            , owns 2.07% shares of Wuhan Fengze Agricultural and Technology Development Co., Ltd.; 
 2. LI Hanying, a citizen of PRC with ID Card number             , owns 10% shares of Wuhan Fengze Agricultural and Technology Development Co.,
Ltd.; 
 3. ZHANG Xin, a citizen of PRC with ID Card number             , owns
87.93% shares of Wuhan Fengze Agricultural and Technology Development Co., Ltd.; 
 Party C: Wuhan Fengze Agricultural and Technology
Development Co., Ltd. Registered Address: Wuhan Huangpi District, Luohan Street, Qigang Village. Legal Representative: Ms. LI Hanying 
 In this Agreement, Party A, Party B and Party C are called collectively as the “Parties” and each of them is called as the “Party”. 
 WHEREAS: 
 1. Party A is a Wholly Foreign Owned Enterprise incorporated under the laws of
the People’s Republic of China (the “PRC”); 
 2. Party C is a limited liability company incorporated in Wuhan and with business
license issued by the Wuhan Municipal Administration for Industry and Commerce; 
 3. As of the date of this Agreement Party B are shareholders
of Wuhan Fengze Agricultural and Technology Development Co., Ltd. (hereinafter referred to as “Wuhan Fengze”) and collectively legally hold all of the equity interest of Wuhan Fengze. 
  

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 NOW, THEREFORE, the Parties through mutual negotiations hereby enter into this Agreement according to the
following terms and conditions: 
  

	1.	THE GRANT AND EXERCISE OF PURCHASE OPTION 

  

	 	1.1	Grant: Party B and C hereby grant Party A an irrevocable exclusive purchase option to purchase all or part of the shares of Party C, currently owned by any of Party B;
Party C further hereby grant Party A an irrevocable exclusive purchase option to purchase all or part of the assets and business of Party C, in each case in accordance with Article 1.3 of this contract (the “Option”). The aforesaid
purchase options are irrevocable and shall be exercised only by Party A (or the qualified persons appointed by Party A). The term “person” used herein shall include any entity, corporation, partnership, joint venture and non-corporate
organizations. 

  

	 	1.2	Exercise Procedures: 

 1.2.1
Party A shall notify Parties B and C in writing prior to exercising its option (the “Option Notice” hereinafter). 
 1.2.2 The next day upon receipt of the Option Notice, Parties B and C, together with party A (or the qualified person appointed by Party A), shall promptly compile a whole set of documents (the “Transfer Documents”) to be
submitted to the government bodies for approving the shares or assets and business transfer in connection with the Option exercise so that the shares or assets and business transfer can be transferred, in whole or in part. 
 1.2.3 Upon the completion of the compilation of all the Transfer Documents and the Transfer Documents being confirmed by Party A, Parties B
and C shall promptly and unconditionally obtain, together with Party A (or the qualified person appointed by Party A), all approvals, permissions, registrations, documents and other necessary approvals to effectuate the transfer of the shares and
remaining assets and business of Party C in connection with the Option exercise. 
  

	 	1.3	Exercise Condition: Party A may immediately exercise the option of acquiring the equity interests in or remaining assets and business of Party C whenever Party A
considers it necessary to acquire Party C and it is doable in accordance with PRC laws and regulations. 

  

	2.	PRICE OF ACQUISITION 

  

	 	2.1	Party A and Party B shall enter into relevant agreements regarding the price of acquisition based on the circumstances of the exercise of option.

  

	 	2.2	Party A has the discretion to decide the time and arrangement of the acquisition, provided that the acquisition will not violate any PRC laws or regulations then in
effect. 

  

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	3.	REPRESENTATIONS AND WARRANTIES 

  

	 	3.1	Each party hereto represents to the other Parties that: (1) it has all the necessary rights, powers and authorizations to enter into this Agreement and perform its
duties and obligations hereunder; (2) Party B and warrant, represent and guarantee that this Agreement, the Restructuring Exercise or the Listing shall be in compliance with any and all applicable PRC laws and shall indemnify, defend and hold
harmless Party A and Party C for all fines, penalties, damages or claims sustained by Party A or Party C arising out of Party B’s violation of this section; and (3) the execution or performance of this Agreement shall not violate any
contract or agreement to which it is a party or by which it or its assets are bounded. 

  

	 	3.2	Party B and Party C hereto represent to Party A that: With respect to the equity interest held by Party B in Party C, (1) Party B are legally registered
shareholders of Party C and have paid Party C the full amount of their respective portions of Party C’s registered capital required under the PRC laws; (2) except Pledge of Equity Agreement, signed by and between Party B and Party A on Dec
1st, 2009 in Wuhan, neither of Party B has mortgaged or pledged his shares of Party C , nor has either of them granted any security interest or borrow against his shares of Party C in any form; And (3) neither of Party B has sold or will sell
to any third party its equity interests in Party C. 

 With respect to the assets of Wuhan Fengze which may be
transferred to Party A at Party A’s option hereunder, (1) Wuhan Fengze owns all such assets and has not mortgaged or pledged or otherwise encumber such assets; and (2) Wuhan Fengze has not sold or will sell to any third party such assets.

  

	 	3.3	Party C hereto represents to Party A that: (1) it is a limited liability company duly registered and validly existing under the PRC law; and (2) its business
operations are in compliance with applicable laws of the PRC in all material aspects. 

  

	4.	COVENANTS 

 The Parties further agree as
follows: 
  

	 	4.1	Before Party A has acquired all the equity/assets and business of Party C by exercising the purchase option provided hereunder, Party C shall not:

 4.1.1 sell, assign, mortgage or otherwise dispose of, or create any encumbrance on, any of its assets,
operations or any legal or beneficiary interests with respect to its revenues (unless such sale, assignment, mortgage, disposal or encumbrance is relating to its daily operation or has been disclosed to and agreed upon by Party A in writing);

 4.1.2 enter into any transaction which may materially affect its assets, liability, operation, shareholders’ equity or
other legal rights (unless such transaction is relating to its daily operation or has been disclosed to and agreed upon by Party A in writing); and 
  

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 4.1.3 distribute any dividend to its shareholders in any manner. 
  

	 	4.2	Before Party A has acquired all the equity/assets/business of Party C by exercising the purchase option provided hereunder, Party B shall not: 

4.2.1 sell, assign, mortgage or otherwise dispose of, or create any encumbrance on, any of the equity held by them in Party C, except for
the pledge of such shares made according to the Pledge of Equity Agreement, signed by and between Party B, C and Party A on Dec1st, 2009 in Wuhan. 
  

	 	4.3	Before Party A has acquired all the equity/assets/business of Party C by exercising the purchase option provided hereunder, Party B and/or Party C shall not
individually or collectively: 

 4.3.1 Supplement, alter or amend the articles of association of Party C in any
manner to the extent that such supplement, alteration or amendment may have a material effect on Party C’s assets, liability, operation, shareholders’ equity or other legal rights; 
 4.3.2 cause Party C to enter into any transaction to the extent such transaction may have a material effect on Party C’s assets,
liability, operation, shareholders’ equity or other legal rights (unless such transaction is relating to Party C’s daily operation or has been disclosed to and agreed upon by Party A in writing); and 
  

	 	4.4	Party B shall entrust Party A to manage Party C in accordance with Entrusted Management Agreement, signed by and between Party B, C and Party A on Dec 1st, 2009 in
Wuhan. 

  

	 	4.5	Non Competition: 

 When Party A
exercises the Option, each of Party B and Party C irrevocably and unconditionally agree and undertake to Party A that it will not without the prior written consent of Party B:- 
 a. be directly or indirectly engaged or concerned (whether as an employee, agent, independent contractor, consultant, advisor or otherwise)
in the conduct of any business competing with Party A’s Business (the “Business”); 
 b. carry on for his/its own
account either alone or in partnership or be concerned as a director or shareholder in any company engaged in any business competing with the Business; 
  

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 c. assist any person, firm or company with technical advice or assistance in relation to any
business competing with the Business; 
 d. solicit or entice away or attempt to solicit or entice away the custom of any person,
firm, company or organization who shall at any time have been a customer, client, distributor or agent of Party A or in the habit of dealing with Party A; 
 e. solicit or entice away or attempt to solicit or entice away from Party A any person who is an officer, manager or employee of Party A whether or not such person would commit a breach of his contract of
employment by reason of leaving Party A; 
 f. in relation to any trade, business or company, use any name in such a way as to be
capable of or likely to be confused with the name of Party A and shall use all reasonable endeavors to procure that no such name shall be used by any other person, firm or company; 
 g. otherwise be interested, directly or indirectly, in any business competing with the Business. 
  

	5.	ASSIGNMENT OF AGREEMENT 

  

	 	5.1	Party B and Party C shall not transfer their rights and obligations under this Agreement to any third party without the prior written consent of Party A.

  

	 	5.2	Each of Party B and Party C hereby agrees that Party A shall have the right to transfer all of its rights and obligation under this Agreement to any third party
whenever it desires. Any such transfer shall only be subject to a written notice sent to Party B and Party C by Party A, and no any further consent from Party Band Party C will be required. 

  

	6.	CONFIDENTIALITY 

 The Parties acknowledge
and confirm that any oral or written materials exchanged by the Parties in connection with this Agreement are confidential. The Parties shall maintain the secrecy and confidentiality of all such materials. Without the written approval by the other
Parties, any Party shall not disclose to any third party any relevant materials, but the following circumstances shall be excluded: 
  

	 	6.1	The materials is known or will be known by the public (except for any materials disclosed to the public by the Party who receives such materials);

  

	 	6.2	The materials are required to be disclosed under the applicable laws or the rules or provisions of stock exchange; or 

  

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	 	6.3	The materials disclosed by each Party to its legal or financial consultant relate to the transaction contemplated under this Agreement, and such legal or financial
consultant shall comply with the confidentiality set forth in this Section. The disclosure of the confidential materials by an employee of any Party shall be deemed disclosure of such materials by such Party, and such Party shall be liable for
breaching the contract. This Article 6 shall survive this Agreement even if this Agreement is invalid, amended, revoked, terminated or unenforceable by any reason. 

  

	7.	BREACH OF CONTRACT 

 Any violation of any
provision hereof, any incomplete or mistaken performance of any obligation provided hereunder, any misrepresentation made hereunder, any material nondisclosure or omission of any material fact, or any failure to perform any covenants provided
hereunder by any Party shall constitute a breach of this Agreement. The breaching Party shall be liable for any such breach pursuant to the applicable laws. 
  

	8.	APPLICABLE LAW AND DISPUTE RESOLUTION 

  

	 	8.1	Applicable Law 

 The execution,
validity, interpretation and performance of this Agreement and the disputes resolution under this Agreement shall be governed by the laws of PRC. 
  

	 	8.2	Dispute Resolution 

 The Parties
shall strive to settle any dispute arising from the interpretation or performance of this Agreement through friendly consultation. In case no settlement can be reached through consultation within thirty (30) days after such dispute is raised,
each an submit such matter to China International Economic and Trade Arbitration Commission South China Sub-Commission in Shenzhen in accordance with its rules. The arbitration shall take place in Shenzhen. The arbitration award shall be final,
conclusive and binding upon both Parties. 
  

	9.	EFFECTIVENESS AND TERMINATION 

  

	 	9.1	This Agreement shall be effective upon the execution hereof by all Parties hereto and shall remain effective thereafter. 

  

	 	9.2	This Agreement may not be terminated without the unanimous consent of all the Parties except that Party A may, by giving a thirty (30) days prior notice to the
other Parties hereto, terminate this Agreement. 

  

	10.	MISCELLANEOUS 

  

	 	10.1	Amendment, Modification and Supplement 

 Any amendment and supplement to this Agreement shall be made by the Parties in writing. The amendment and supplement duly executed by each Party shall be deemed an integral part of this Agreement and shall have the same legal effect as this
Agreement. 
  

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	 	10.2	Entire Agreement 

 The Parties
acknowledge that this Agreement constitutes the entire agreement of the Parties with respect to the subject matters therein and supersedes and replaces all prior or contemporaneous agreements and understandings in oral or written form. 

 

	 	10.3	Severability 

 If any provision
of this Agreement is adjudicated to be invalid or non-enforceable according to relevant PRC laws of the PRC, such a provision shall be deemed invalid only to the extent the PRC laws are applicable in China, and the validity, legality and
enforceability of the other provisions hereof shall not be affected or impaired in any way. The Parties shall, through consultation based on the principal of fairness, replace such invalid, illegal or non-enforceable provision with valid provision
so that any substituted provision may bring the similar economic effects as those intended by the invalid, illegal or non-enforceable provision. 
  

	 	10.4	Headings 

 The headings contained
in this Agreement are for the convenience of reference only and shall not in any other way affect the interpretation, explanation or the meaning of the provisions of this Agreement. 
  

	 	10.5	Language and Copies 

 This
Agreement is written in Chinese and English and both the English version and Chinese version shall have the same effect. This Agreement is executed in four (4) copies for each version; each Party holds one and each original copy has the same
legal effect. 
  

	 	10.6	Successor 

 This Agreement shall
bind and benefit the successor or the transferee of each Party. 
 (REMAINDER OF PAGE INTENTIONALLY LEFT BLANK) 
  
  

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 IN WITNESS THEREFORE, the Parties hereof have caused this Agreement to be executed by their duly authorized
representatives as of the date first written above. 
 PARTY A: 
 Wuhan Fengxin Agricultural and Technology Development Co., Ltd. 
 (seal) 
 Legal Representative/Authorized Representative (Signature): 
 PARTY B: 
 WANG Kaiying (signature): 
 LI Hanying (signature): 
 ZHANG
Xin (signature): 
 PARTY C: 
 Wuhan Fengze Agricultural and Technology Development Co., Ltd. 
 (seal) 
 Legal Representative/Authorized Representative (Signature): 
  

 8EXHIBIT 10.6

 Exhibit 10.6 
 TIANLI AGRITECH, INC. 
 2010 SHARE INCENTIVE PLAN

 1. Purpose and Effective Date. 
 (a) The purpose of the Tianli Agritech, Inc. 2010 Share Incentive Plan (the “Plan”) is to further the long term
stability and financial success of Tianli Agritech, Inc. (the “Company”) by attracting and retaining personnel, including employees, non-employee directors, and consultants, through the use of stock incentives. It is believed that
ownership of Company stock will stimulate the efforts of those employees upon whose judgment, interest and efforts the Company is and will be largely dependent for the successful conduct of its business. 
 (b) The Plan was adopted by the Board of Directors and the shareholders of the Company on
            ,         ,              (the “Effective Date”). 
 2. Definitions. 
 (a) Act. The Securities Exchange Act of 1934, as amended. 
 (b) Affiliate. The meaning assigned to the term “affiliate” under Rule 12b-2 of the Act. 
 (c) Applicable Withholding Taxes. The aggregate amount of federal, state and local income and payroll taxes that the Company is required to withhold (based on the minimum applicable statutory withholding rates) in connection
with any exercise of an Option or the award, lapse of restrictions or payment with respect to Restricted Stock. 
 (d) Award. The award of an Option or Restricted Stock under the Plan. 
 (e) Beneficiary. The person or persons entitled to receive a benefit pursuant to an Award upon the death of a Participant. 
 (f) Board. The Board of Directors of the Company. 
 (g) Cause. Dishonesty, fraud, misconduct, gross incompetence, gross negligence, breach of a material fiduciary duty, material breach of an agreement with the Company, unauthorized use or disclosure of confidential information or
trade secrets, or conviction or confession of a crime punishable by law (except minor violations), in each case as determined by the Committee, which determination shall be binding. Notwithstanding the foregoing, if “Cause” is defined in
an employment agreement between a Participant and the Company, “Cause” shall have the meaning assigned to it in such agreement. 
 (h) Change of Control. 
 (i) The acquisition by any
unrelated person of beneficial ownership (as that term is used for purposes of the Act) of 50% or more of the then outstanding common shares of the Company or the combined voting power of the then outstanding voting securities of the Company
entitled to vote generally in the election of directors. The term “unrelated person” means any person other than (x) the Company and its subsidiaries, (y) an employee benefit plan or related trust sponsored by the Company or its
subsidiaries, and (z) a person who acquires stock of the Company pursuant to an agreement with the Company that is approved by the Board in advance of the acquisition. For purposes of this subsection, a “person” means an individual,
entity or group, as that term is used for purposes of the Act; 
 (ii) Any tender or exchange offer, merger or
other business combination, sale of assets or any combination of the foregoing transactions, and the Company is not the surviving corporation; and 
 (iii) A liquidation of the Company. 
 (i) Code. The
Internal Revenue Code of 1986, as amended. 
 (j) Committee. The Compensation Committee of the Board.

 (k) Company. Tianli Agritech, Inc. 

 (l) Company Stock. The common shares of the Company. In the
event of a change in the capital structure of the Company (as provided in Section 12 below), the shares resulting from such a change shall be deemed to be Company Stock within the meaning of the Plan. 
 (m) Consultant. A person rendering services to the Company who is not an “employee” for purposes of
employment tax withholding under the Code. 
 (n) Corporate Change. A consolidation, merger,
dissolution or liquidation of the Company, or a sale or distribution of assets or stock (other than in the ordinary course of business) of the Company; provided that, unless the Committee determines otherwise, a Corporate Change shall only be
considered to have occurred with respect to Participants whose business unit is affected by the Corporate Change. 
 (o) Date of Grant. The date as of which an Award is made by the Committee. 
 (p) Disability or Disabled. As to an Incentive Stock Option, a Disability within the meaning of Code Section 22(e)(3). As to all other Incentive Awards, the Committee shall determine whether a Disability exists and such
determination shall be conclusive. 
 (q) Fair Market Value. 
 (i) If Company Stock is traded on a national securities exchange, the average of the highest and lowest registered sales
prices of Company Stock on such exchange; 
 (ii) If Company Stock is traded in the over-the-counter market, the
average between the closing bid and asked prices as reported by the NASDAQ Stock Market; or 
 (iii) If shares of
Company Stock are not publicly traded, the Fair Market Value shall be determined by the Committee using any reasonable method in good faith. 
 Fair Market Value shall be determined as of the applicable date specified in the Plan or, if there are no trades on such date, the value shall be determined as of the last preceding day on which Company Stock is traded. 
 (r) Incentive Stock Option. An Option intended to meet the requirements of, and qualify for favorable Federal
income tax treatment under, Code Section 422. 
 (s) Nonstatutory Stock Option. An Option that
does not meet the requirements of Code Section 422, or that is otherwise not intended to be an Incentive Stock Option and is so designated. 
 (t) Option. A right to purchase Company Stock granted under the Plan, at a price determined in accordance with the Plan. 
 (u) Participant. Any individual who receives an Award under the Plan. 
 (v) Restricted Stock. Company Stock awarded upon the terms and subject to the restrictions set forth in
Section 7 below. 
 (w) Rule 16b-3. Rule 16b-3 of the Act, including any corresponding
subsequent rule or any amendments to Rule 16b-3 enacted after the effective date of the Plan. 
 (x) 10%
Shareholder. A person who owns, directly or indirectly, stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or an Affiliate. Indirect ownership of stock shall be determined in accordance with
Code Section 424(d). 
 3. General. Awards of Options and Restricted Stock may be granted under the Plan.
Options granted under the Plan may be Incentive Stock Options or Nonstatutory Stock Options. 
 4. Stock. Subject to
Section 12 of the Plan, there shall be reserved for issuance under the Plan a total of 1,012,500 unissued shares of Company Stock. Shares allocable to Options granted under the Plan that expire or otherwise terminate unexercised and shares that
are forfeited pursuant to restrictions on Restricted Stock awarded under the Plan may again be subjected to an Award under this Plan. For purposes of determining the number of shares that are available for Awards under the Plan, such number shall,
if permissible under Rule 16b-3, include the number of shares surrendered by a Participant or retained by the Company (a) in connection with the exercise of an Option or (b) in payment of Applicable Withholding Taxes. 
  

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 5. Eligibility. 
 (a) Any employee of, non-employee director of, or Consultant to the Company or its affiliates, who, in the judgment of the
Committee, has contributed or can be expected to contribute to the profits or growth of the Company is eligible to become a Participant. The Committee shall have the power and complete discretion, as provided in Section 14, to select eligible
Participants and to determine for each Participant the terms, conditions and nature of the Award and the number of shares to be allocated as part of the Award; provided, however, that any award made to a member of the Committee must be approved by
the Board. The Committee is expressly authorized to make an Award to a Participant conditioned on the surrender for cancellation of an existing Award. 
 (b) The grant of an Award shall not obligate the Company to pay an employee any particular amount of remuneration, to continue the employment of the employee after the grant or to make further grants to
the employee at any time thereafter. 
 (c) Non-employee directors and Consultants shall not be eligible to
receive the Award of an Incentive Stock Option. 
 6. Stock Options. 
 (a) Whenever the Committee deems it appropriate to grant Options, notice shall be given to the Participant stating the number
of shares for which Options are granted, the Option price per share, whether the options are Incentive Stock Options or Nonstatutory Stock Options, and the conditions to which the grant and exercise of the Options are subject. This notice, when duly
accepted in writing by the Participant, shall become a stock option agreement between the Company and the Participant. 
 (b) The Committee shall establish the exercise price of Options. The exercise price of an Incentive Stock Option shall be not less than 100% of the Fair Market Value of such shares on the Date of Grant, provided that if the Participant is a
10% Shareholder, the exercise price of an Incentive Stock Option shall be not less than 110% of the Fair Market Value of such shares on the Date of Grant. The exercise price of a Nonstatutory Stock Option Award shall not be less than 100% of the
Fair Market Value of the shares of Company Stock covered by the Option on the Date of Grant. 
 (c) Options may
be exercised in whole or in part at such times as may be specified by the Committee in the Participant’s stock option agreement. The Committee may impose such vesting conditions and other requirements as the Committee deems appropriate, and the
Committee may include such provisions regarding a Change of Control or Corporate Change as the Committee deems appropriate. 
 (d) The Committee shall establish the term of each Option in the Participant’s stock option agreement. The term of an Incentive Stock Option shall not be longer than ten years from the Date of Grant,
except that an Incentive Stock Option granted to a 10% Shareholder may not have a term in excess of five years. No option may be exercised after the expiration of its term or, except as set forth in the Participant’s stock option agreement,
after the termination of the Participant’s employment. The Committee shall set forth in the Participant’s stock option agreement when, and under what circumstances, an Option may be exercised after termination of the Participant’s
employment or period of service; provided that no Incentive Stock Option may be exercised after (i) three months from the Participant’s termination of employment with the Company for reasons other than Disability or death, or (ii) one
year from the Participant’s termination of employment on account of Disability or death. The Committee may, in its sole discretion, amend a previously granted Incentive Stock Option to provide for more liberal exercise provisions, provided
however that if the Incentive Stock Option as amended no longer meets the requirements of Code Section 422, and, as a result the Option no longer qualifies for favorable federal income tax treatment under Code Section 422, the amendment
shall not become effective without the written consent of the Participant. 
 (e) An Incentive Stock Option, by
its terms, shall be exercisable in any calendar year only to the extent that the aggregate Fair Market Value (determined at the Date of Grant) of Company Stock with respect to which Incentive Stock Options are exercisable by the Participant for the
first time during the calendar year does not exceed $100,000 (the “Limitation Amount”). Incentive Stock Options granted under the Plan and all other plans of the Company and any parent or Subsidiary of the Company shall be aggregated for
purposes of determining whether the Limitation Amount has been exceeded. The Board may impose such conditions as it deems appropriate on an Incentive Stock option to ensure that the foregoing requirement is met. If Incentive Stock Options that first
become exercisable in a calendar year exceed the Limitation Amount, the excess Options will be treated as Nonstatutory Stock Options to the extent permitted by law. 
  

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 (f) If a Participant dies and if the Participant’s stock option
agreement provides that part or all of the Option may be exercised after the Participant’s death, then such portion may be exercised by the personal representative of the Participant’s estate during the time period specified in the stock
option agreement. 
 (g) If a Participant’s employment or services is terminated by the Company for Cause,
the Participant’s Options shall terminate as of the date of the misconduct. 
 7. Restricted Stock Awards.

 (a) Whenever the Committee deems it appropriate to grant a Restricted Stock Award, notice shall be given to
the Participant stating the number of shares of Restricted Stock for which the Award is granted and the terms and conditions to which the Award is subject. This notice, when accepted in writing by the Participant, shall become an Award agreement
between the Company and the Participant. Certificates representing the shares shall be issued in the name of the Participant, subject to the restrictions imposed by the Plan and the Committee. A Restricted Stock Award may be made by the Committee in
its discretion without cash consideration. 
 (b) The Committee may place such restrictions on the
transferability and vesting of Restricted Stock as the Committee deems appropriate, including restrictions relating to continued employment and financial performance goals. Without limiting the foregoing, the Committee may provide performance or
Change of Control or Corporate Change acceleration parameters under which all, or a portion, of the Restricted Stock will vest on the Company’s achievement of established performance objectives. Restricted Stock may not be sold, assigned,
transferred, disposed of, pledged, hypothecated or otherwise encumbered until the restrictions on such shares shall have lapsed or shall have been removed pursuant to subsection (c) below. 
 (c) The Committee may provide in a Restricted Stock Award, or subsequently, that the restrictions will lapse if a Change of
Control or Corporate Change occurs. The Committee may at any time, in its sole discretion, accelerate the time at which any or all restrictions will lapse or may remove restrictions on Restricted Stock as it deems appropriate. 
 (d) A Participant shall hold shares of Restricted Stock subject to the restrictions set forth in the Award agreement and in
the Plan. In other respects, the Participant shall have all the rights of a shareholder with respect to the shares of Restricted Stock, including, but not limited to, the right to vote such shares and the right to receive all cash dividends and
other distributions paid thereon. Certificates representing Restricted Stock shall bear a legend referring to the restrictions set forth in the Plan and the Participant’s Award agreement. If stock dividends are declared on Restricted Stock,
such stock dividends or other distributions shall be subject to the same restrictions as the underlying shares of Restricted Stock. 
 8. Method of Exercise of Options. 
 (a) Options may be exercised by giving written notice
of the exercise to the Company, stating the number of shares the Participant has elected to purchase under the Option. Such notice shall be effective only if accompanied by the exercise price in full in cash; provided that, if the terms of an Option
so permit, the Participant may (i) deliver Company Stock that the Participant has owned for at least six months (valued at Fair Market Value on the date of exercise), or (ii) exercise any applicable net exercise provision contained
therein. Unless otherwise specifically provided in the Option, any payment of the exercise price paid by delivery of Company Stock acquired directly or indirectly from the Company shall be paid only with shares of Company Stock that have been held
by the Participant for more than six months (or such longer or shorter period of time required to avoid a charge to earnings for financial accounting purposes). 
 (b) Notwithstanding anything herein to the contrary, Awards shall always be granted and exercised in such a manner as to
conform to the provisions of Rule 16b-3. 
 9. Applicable Withholding Taxes. Each Participant shall agree, as a
condition of receiving an Award, to pay to the Company, or make arrangements satisfactory to the Company regarding the payment of, all Applicable Withholding Taxes with respect to the Award. Until the Applicable Withholding Taxes have been paid or
arrangements satisfactory to the Company have been made, no stock certificates (or, in the case of Restricted Stock, no stock certificates free of a restrictive legend) shall be issued to the Participant. As an alternative to making a cash

  

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payment to the Company to satisfy Applicable Withholding Tax obligations, the Committee may establish procedures permitting the Participant to elect to (a) deliver shares of already owned
Company Stock (subject to such restrictions as the Committee may establish, including a requirement that any shares of Company Stock so delivered shall have been held by the Participant for not less than six months) or (b) have the Company
retain that number of shares of Company Stock that would satisfy all or a specified portion of the Applicable Withholding Taxes. Any such election shall be made only in accordance with procedures established by the Committee and in accordance with
Rule 16b-3. 
 10. Nontransferability of Awards. 
 (a) In general, Awards, by their terms, shall not be transferable by the Participant except by will or by the laws of descent
and distribution or except as described below. Options shall be exercisable, during the Participant’s lifetime, only by the Participant or by his guardian or legal representative. 
 (b) Notwithstanding the provisions of (a) and subject to federal and state securities laws, the Committee may grant
Nonstatutory Stock Options that permit a Participant to transfer the Options to one or more immediate family members, to a trust for the benefit of immediate family members, or to a partnership, limited liability company, or other entity the only
partners, members, or interest-holders of which are among the Participant’s immediate family members. Consideration may not be paid for the transfer of Options. The transferee of an Option shall be subject to all conditions applicable to the
Option prior to its transfer. The agreement granting the Option shall set forth the transfer conditions and restrictions. The Committee may impose on any transferable Option and on stock issued upon the exercise of an Option such limitations and
conditions as the Committee deems appropriate. 
 11. Termination, Modification, Change. If not sooner terminated by
the Board, this Plan shall terminate at the close of business on the tenth anniversary of the Effective Date. No Awards shall be made under the Plan after its termination. The Board may terminate the Plan or may amend the Plan in such respects as it
shall deem advisable; provided that, if and to the extent required by Rule 16b-3, no change shall be made that increases the total number of shares of Company Stock reserved for issuance pursuant to Awards granted under the Plan (except pursuant to
Section 12), expands the class of persons eligible to receive Awards, or materially increases the benefits accruing to Participants under the Plan, unless such change is authorized by the shareholders of the Company. Notwithstanding the
foregoing, the Board may unilaterally amend the Plan and Awards as it deems appropriate to ensure compliance with Rule 16b-3 and to cause Incentive Stock Options to meet the requirements of the Code and regulations thereunder. Except as provided in
the preceding sentence, a termination or amendment of the Plan shall not, without the consent of the Participant, adversely affect a Participant’s rights under an Award previously granted to him. 
 12. Change in Capital Structure. 
 (a) In the event of a stock dividend, stock split or combination of shares, spin-off, reclassification, recapitalization, merger or other change in the Company’s capital stock (including, but not
limited to, the creation or issuance to shareholders generally of rights, options or warrants for the purchase of common shares or preferred stock of the Company), the number and kind of shares of stock or securities of the Company to be issued
under the Plan (under outstanding Awards and Awards to be granted in the future), the exercise price of options, and other relevant provisions shall be appropriately adjusted by the Committee, whose determination shall be binding on all persons. If
the adjustment would produce fractional shares with respect to any Award, the Committee may adjust appropriately the number of shares covered by the Award so as to eliminate the fractional shares. 
 (b) In the event the Company distributes to its shareholders a dividend, or sells or causes to be sold to a
person other than the Company or a Subsidiary shares of stock in any corporation (a “Spinoff Company”) which, immediately before the distribution or sale, was a majority owned Subsidiary of the Company, the Committee shall have the power,
in its sole discretion, to make such adjustments as the Committee deems appropriate. The Committee may make adjustments in the number and kind of shares or other securities to be issued under the Plan (under outstanding Awards and Awards to be
granted in the future), the exercise price of Options, and other relevant provisions, and, without limiting the foregoing, may substitute securities of a Spinoff Company for securities of the Company. The Committee shall make such adjustments as it
determines to be appropriate, considering the economic effect of the distribution or sale on the interests of the Company’s shareholders and the Participants in the businesses operated by the Spinoff Company, and subject to the proviso that any
such adjustments or new options shall not be made or

  

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granted, respectively, that would result in subjecting the Plan to variable plan accounting treatment. The Committee’s determination shall be binding on all persons. If the adjustment would
produce fractional shares with respect to any Award, the Committee may adjust appropriately the number of shares covered by the Award so as to eliminate the fractional shares. 
 (c) To the extent required to avoid a charge to earnings for financial accounting purposes, adjustments made by the Committee
pursuant to this Section 12 to outstanding Awards shall be made so that both (i) the aggregate intrinsic value of an Award immediately after the adjustment is not greater than or less than the Award’s aggregate intrinsic value before
the adjustment and (ii) the ratio of the exercise price per share to the market value per share is not reduced. 
 (d) Notwithstanding anything in the Plan to the contrary, the Committee may take the foregoing actions without the consent of any Participant, and the Committee’s determination shall be conclusive and binding on all persons for all
purposes. The Committee shall make its determinations consistent with Rule 16b-3 and the applicable provisions of the Code. 
 13. Change of Control. In the event of a Change of Control or Corporate Change, the Committee may take such actions with respect to Awards as the Committee deems appropriate. These actions may include, but shall not be limited
to, the following: 
 (a) At the time the Award is made, provide for the acceleration of the vesting schedule
relating to the exercise or realization of the Award so that the Award may be exercised or realized in full on or before a date initially fixed by the Committee; 
 (b) Provide for the purchase or settlement of any such Award by the Company for any amount of cash equal to the amount which
could have been obtained upon the exercise of such Award or realization of a Participant’s rights had such Award been currently exercisable or payable; 
 (c) Make adjustments to Awards then outstanding as the Committee deems appropriate to reflect such Change of Control or
Corporate Change; provided, however, that to the extent required to avoid a charge to earnings for financial accounting purposes, such adjustments shall be made so that both (i) the aggregate intrinsic value of an Award immediately after the
adjustment is not greater than or less than the Award’s aggregate intrinsic value before the Award and (ii) the ratio of the exercise price per share to the market value per share is not reduced; or 
 (d) Cause any such Award then outstanding to be assumed, or new rights substituted therefore, by the acquiring or surviving
legal entity in such Change of Control or Corporate Change. 
 14. Administration of the Plan. 
 (a) The Plan shall be administered by the Committee, who shall be appointed by the Board. The Board may designate the
Compensation Committee of the Board, or a subcommittee of the Compensation Committee, to be the Committee for purposes of the Plan. If and to the extent required by Rule 16b-3, all members of the Committee shall be “Non-Employee Directors”
as that term is defined in Rule 16b-3, and the Committee shall be comprised solely of two or more “outside directors” as that term is defined for purposes of Code section 162(m). If any member of the Committee fails to qualify as an
“outside director” or (to the extent required by Rule 16b-3) a “Non-Employee Director,” such person shall immediately cease to be a member of the Committee and shall not take part in future Committee deliberations. The Board of
Directors may from time to time may appoint members of the Committee and fill vacancies, however caused, in the Committee. 
 (b) The Committee shall have the authority to impose such limitations or conditions upon an Award as the Committee deems appropriate to achieve the objectives of the Award and the Plan. Without limiting
the foregoing and in addition to the powers set forth elsewhere in the Plan, the Committee shall have the power and complete discretion to determine (i) which eligible persons shall receive an Award and the nature of the Award, (ii) the
number of shares of Company Stock to be covered by each Award, (iii) whether Options shall be Incentive Stock options or Nonstatutory Stock Options, (iv) the Fair Market Value of Company Stock, (v) the time or times when an Award
shall be granted, (vi) whether an Award shall become vested over a period of time, according to a performance-based vesting schedule or otherwise, and when it shall be fully vested, (vii) the terms and conditions under which restrictions
imposed upon an Award shall lapse, (viii) whether a Change of Control or Corporate Change exists, (ix) the terms of

  

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incentive programs, performance criteria and other factors relevant to the issuance of Incentive Stock or the lapse of restrictions on Restricted Stock or Options, (x) when Options may be
exercised, (xi) whether to approve a Participant’s election with respect to Applicable Withholding Taxes, (xii) conditions relating to the length of time before disposition of Company Stock received in connection with an Award is
permitted, (xiii) notice provisions relating to the sale of Company Stock acquired under the Plan, and (xiv) any additional requirements relating to Awards that the Committee deems appropriate. Notwithstanding the foregoing, no
“tandem stock options” (where two stock options are issued together and the exercise of one option affects the right to exercise the other option) may be issued in connection with Incentive Stock Options. 
 (c) The Committee shall have the power to amend the terms of previously granted Awards so long as the terms as amended are
consistent with the terms of the Plan and, where applicable, consistent with the qualification of an option as an Incentive Stock Option. The consent of the Participant must be obtained with respect to any amendment that would adversely affect the
Participant’s rights under the Award, except that such consent shall not be required if such amendment is for the purpose of complying with Rule 16b-3 or any requirement of the Code applicable to the Award. 
 (d) The Committee may adopt rules and regulations for carrying out the Plan. The Committee shall have the express
discretionary authority to construe and interpret the Plan and the Award agreements, to resolve any ambiguities, to define any terms, and to make any other determinations required by the Plan or an Award agreement. The interpretation and
construction of any provisions of the Plan or an Award agreement by the Committee shall be final and conclusive. The Committee may consult with counsel, who may be counsel to the Company, and shall not incur any liability for any action taken in
good faith in reliance upon the advice of counsel. 
 (e) A majority of the members of the Committee shall
constitute a quorum, and all actions of the Committee shall be taken by a majority of the members present. Any action may be taken by a written instrument signed by all of the members, and any action so taken shall be fully effective as if it had
been taken at a meeting. 
 15. Issuance of Company Stock. The Company shall not be required to issue or deliver any
certificate for shares of Company Stock before (i) the admission of such shares to listing on any stock exchange on which Company Stock may then be listed, (ii) receipt of any required registration or other qualification of such shares
under any state or federal securities law or regulation that the Company’s counsel shall determine is necessary or advisable, and (iii) the Company shall have been advised by counsel that all applicable legal requirements have been
complied with. The Company may place on a certificate representing Company Stock any legend required to reflect restrictions pursuant to the Plan, and any legend deemed necessary by the Company’s counsel to comply with federal or state
securities laws. The Company may require a customary written indication of a Participant’s investment intent. Until a Participant has been issued a certificate for the shares of Company Stock acquired, the Participant shall possess no
shareholder rights with respect to the shares. 
 16. Rights Under the Plan. Title to and beneficial ownership of
all benefits described in the Plan shall at all times remain with the Company. Participation in the Plan and the right to receive payments under the Plan shall not give a Participant any proprietary interest in the Company or any Affiliate or any of
their assets. No trust fund shall be created in connection with the Plan, and there shall be no required funding of amounts that may become payable under the Plan. A Participant shall, for all purposes, be a general creditor of the Company. The
interest of a Participant in the Plan cannot be assigned, anticipated, sold, encumbered or pledged and shall not be subject to the claims of his creditors. 
 17. Beneficiary. A Participant may designate, on a form provided by the Committee, one or more beneficiaries to receive any payments under Awards of Restricted Stock or Incentive Stock after
the Participant’s death. If a Participant makes no valid designation, or if the designated beneficiary fails to survive the Participant or otherwise fails to receive the benefits, the Participant’s beneficiary shall be the first of the
following persons who survives the Participant: (a) the Participant’s surviving spouse, (b) the Participant’s surviving descendants, per stirpes, or (c) the personal representative of the Participant’s
estate. 
 18. Notice. All notices and other communications required or permitted to be given under this Plan shall
be in writing and shall be deemed to have been duly given if delivered personally or mailed first class, postage prepaid, as follows: (a) if to the Company—at its principal business address to the attention of the Secretary; (b) if to
any Participant—at the last address of the Participant known to the sender at the time the notice or other communication is sent. 
  

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 19. Interpretation. The terms of this Plan and Awards granted pursuant to the
Plan are subject to all present and future regulations and rulings of the Secretary of the Treasury relating to the qualification of Incentive Stock Options under the Code or compliance with Code section 162(m), to the extent applicable, and they
are subject to all present and future rulings of the Securities and Exchange Commission with respect to Rule 16b-3. If any provision of the Plan or an Award conflicts with any such regulation or ruling, to the extent applicable, the Committee shall
cause the Plan to be amended, and shall modify the Award, so as to comply, or if for any reason amendments cannot be made, that provision of the Plan and/or the Award shall be void and of no effect. 
  

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