Document:

The Walt Disney Company/Pixar 2004 Equity Incentive Plan

 Exhibit 10.3 
 THE WALT DISNEY COMPANY/PIXAR 
 2004 EQUITY INCENTIVE PLAN 
 (As Amended and Restated Effective May 5, 2006) 

 TABLE OF CONTENTS 
  

					
	 	    	 	  	Page
	SECTION 1 BACKGROUND AND PURPOSE	  	1
			
	 1.1
	    	Background and Effective Date	  	1
	 1.2
	    	Purpose of the Plan	  	1
		
	SECTION 2 DEFINITIONS	  	1
			
	 2.1
	    	“1934 Act”	  	1
	 2.2
	    	“Affiliate”	  	1
	 2.3
	    	“Award”	  	1
	 2.4
	    	“Award Agreement”	  	2
	 2.5
	    	“Board” or “Board of Directors”	  	2
	 2.6
	    	“Code”	  	2
	 2.7
	    	“Committee”	  	2
	 2.8
	    	“Company”	  	2
	 2.9
	    	“Consultant”	  	2
	 2.10
	    	“Director”	  	2
	 2.11
	    	“Disability”	  	2
	 2.12
	    	“Earnings Per Share”	  	2
	 2.13
	    	“Employee”	  	2
	 2.14
	    	“Exchange Program”	  	2
	 2.15
	    	“Exercise Price”	  	2
	 2.16
	    	“Fair Market Value”	  	2
	 2.17
	    	“Fiscal Year”	  	3
	 2.18
	    	“Grant Date”	  	3
	 2.19
	    	“Incentive Stock Option”	  	3
	 2.20
	    	“Nonemployee Director”	  	3
	 2.21
	    	“Nonqualified Stock Option”	  	3
	 2.22
	    	“Option”	  	3
	 2.23
	    	“Participant”	  	3
	 2.24
	    	“Performance Goals”	  	3
	 2.25
	    	“Performance Period”	  	3
	 2.26
	    	“Performance Share”	  	3
	 2.27
	    	“Performance Unit”	  	3
	 2.28
	    	“Period of Restriction”	  	4
	 2.29
	    	“Plan”	  	4
	 2.30
	    	“Profit After Tax”	  	4
	 2.31
	    	“Restricted Stock”	  	4
	 2.32
	    	“Retirement”	  	4
	 2.33
	    	“Return on Equity”	  	4
	 2.34
	    	“Revenue”	  	4
	 2.35
	    	“Rule 16b-3”	  	4
	 2.36
	    	“Section 16 Person”	  	4
	 2.37
	    	“Shares”	  	4
	 2.38
	    	“Stock Appreciation Right” or “SAR”	  	4

  

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 TABLE OF CONTENTS 
 (continued) 
  

					
	 	    	 	  	Page
	 2.39
	    	“Subsidiary”	  	4
	 2.40
	    	“Termination of Service”	  	5
	 2.41
	    	“Total Shareholder Return”	  	5
		
	SECTION 3 ADMINISTRATION	  	5
			
	 3.1
	    	The Committee	  	5
	 3.2
	    	Authority of the Committee	  	5
	 3.3
	    	Delegation by the Committee	  	5
	 3.4
	    	Decisions Binding	  	6
		
	SECTION 4 SHARES SUBJECT TO THE PLAN	  	6
			
	 4.1
	    	Number of Shares	  	6
	 4.2
	    	Lapsed Awards	  	6
	 4.3
	    	Adjustments in Awards and Authorized Shares	  	6
		
	SECTION 5 STOCK OPTIONS	  	6
			
	 5.1
	    	Grant of Options	  	6
	 5.2
	    	Award Agreement	  	7
	 5.3
	    	Exercise Price	  	7
	 5.4
	    	Expiration of Options.	  	7
	 5.5
	    	Exercisability of Options	  	8
	 5.6
	    	Payment	  	8
	 5.7
	    	Restrictions on Share Transferability	  	8
	 5.8
	    	Certain Additional Provisions for Incentive Stock Options	  	8
		
	SECTION 6 STOCK APPRECIATION RIGHTS	  	9
			
	 6.1
	    	Grant of SARs	  	9
	 6.2
	    	SAR Agreement	  	9
	 6.3
	    	Expiration of SARs	  	9
	 6.4
	    	Payment of SAR Amount	  	9
		
	SECTION 7 RESTRICTED STOCK	  	10
			
	 7.1
	    	Grant of Restricted Stock	  	10
	 7.2
	    	Restricted Stock Agreement	  	10
	 7.3
	    	Transferability	  	10
	 7.4
	    	Other Restrictions	  	10
	 7.5
	    	Removal of Restrictions	  	11
	 7.6
	    	Voting Rights	  	11
	 7.7
	    	Dividends and Other Distributions	  	11
	 7.8
	    	Return of Restricted Stock to Company	  	11
		
	SECTION 8 PERFORMANCE UNITS	  	11
			
	 8.1
	    	Grant of Performance Units	  	11
	 8.2
	    	Value of Performance Units	  	11

  

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 TABLE OF CONTENTS 
 (continued) 
  

					
	 	    	 	  	Page
	 8.3
	    	Performance Objectives and Other Terms	  	11
	 8.4
	    	Earning of Performance Units	  	12
	 8.5
	    	Form and Timing of Payment of Performance Units	  	12
	 8.6
	    	Cancellation of Performance Units	  	12
		
	SECTION 9 PERFORMANCE SHARES	  	12
			
	 9.1
	    	Grant of Performance Shares	  	12
	 9.2
	    	Value of Performance Shares	  	13
	 9.3
	    	Performance Share Agreement	  	13
	 9.4
	    	Performance Objectives and Other Terms	  	13
	 9.5
	    	Earning of Performance Shares	  	13
	 9.6
	    	Form and Timing of Payment of Performance Shares	  	13
	 9.7
	    	Cancellation of Performance Shares	  	14
		
	SECTION 10 [INTENTIONALLY OMITTED]	  	14
		
	SECTION 11 MISCELLANEOUS	  	14
			
	 11.1
	    	Deferrals	  	14
	 11.2
	    	No Effect on Employment or Service	  	14
	 11.3
	    	Participation	  	14
	 11.4
	    	Indemnification	  	14
	 11.5
	    	Successors	  	15
	 11.6
	    	Beneficiary Designations	  	15
	 11.7
	    	Limited Transferability of Awards	  	15
	 11.8
	    	No Rights as Shareholder	  	15
		
	SECTION 12 AMENDMENT, TERMINATION, AND DURATION	  	15
			
	 12.1
	    	Amendment, Suspension, or Termination	  	15
	 12.2
	    	Duration of the Plan	  	16
		
	SECTION 13 TAX WITHHOLDING	  	16
			
	 13.1
	    	Withholding Requirements	  	16
	 13.2
	    	Withholding Arrangements	  	16
		
	SECTION 14 LEGAL CONSTRUCTION	  	16
			
	 14.1
	    	Gender and Number	  	16
	 14.2
	    	Severability	  	16
	 14.3
	    	Requirements of Law	  	16
	 14.4
	    	Securities Law Compliance	  	16
	 14.5
	    	Governing Law	  	16
	 14.6
	    	Captions	  	16

  

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 The WALT DISNEY COMPANY/ PIXAR 
 2004 EQUITY INCENTIVE PLAN 
 SECTION 1 
 BACKGROUND AND PURPOSE 
 1.1 Background and
Effective Date. The Plan, formerly known as the Pixar 2004 Equity Incentive Plan, adopted by the Board of Directors of Pixar, a California corporation (“Pixar”), and approved by its shareholders, became effective on August 20,
2004. In connection with the merger (the “Merger”) of Lux Acquisition Corp., a California corporation and wholly owned subsidiary of The Walt Disney Company, with and into Pixar, the Plan was assumed by The Walt Disney Corporation,
effective upon the consummation of the Merger. The Plan has been amended and restated to reflect the exchange ratio in the Merger and certain other Merger-related changes. 
 1.2 Purpose of the Plan. The Plan is intended to attract, motivate, and retain (a) employees of Pixar and its Subsidiaries,
(b) consultants who provide significant services to Pixar and its Subsidiaries, and (c) directors of Pixar who are employees of neither Pixar nor any of its Subsidiaries. The Plan also is designed to encourage stock ownership by
Participants, thereby aligning their interests with those of the Company’s shareholders and to permit the payment of compensation that qualifies as performance-based compensation under Section 162(m) of the Code. 
 SECTION 2 
 DEFINITIONS 
 The following words and phrases shall have the following meanings unless a different meaning is plainly required by the context: 
 2.1 “1934 Act” means the Securities Exchange Act of 1934, as amended. Reference to a specific section of the 1934 Act or regulation
thereunder shall include such section or regulation, any valid regulation promulgated under such section, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation.

 2.2 “Affiliate” means any corporation or any other entity (including, but not limited to, partnerships and joint
ventures) controlling, controlled by, or under common control with the Company. 
 2.3 “Award” means, individually or
collectively, a grant under the Plan of Incentive Stock Options, Nonqualified Stock Options, SARs, Restricted Stock, Performance Units, or Performance Shares. 

 2.4 “Award Agreement” means the written agreement setting forth the terms and conditions
applicable to each Award granted under the Plan. 
 2.5 “Board” or “Board of Directors” means the Board of
Directors of the Company. 
 2.6 “Code” means the Internal Revenue Code of 1986, as amended. Reference to a specific section
of the Code or regulation thereunder shall include such section or regulation, any valid regulation promulgated under such section, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such
section or regulation. 
 2.7 “Committee” means the committee appointed by the Board (pursuant to Section 3.1) to
administer the Plan. 
 2.8 “Company” means The Walt Disney Company, a Delaware corporation, or any successor thereto.

 2.9 “Consultant” means any consultant, independent contractor, or other person who provides significant services to Pixar
or its Subsidiaries, but who is neither an Employee nor a Director. 
 2.10 “Director” means any individual who is a member
of the Board of Directors of Pixar. 
 2.11 “Disability” means a permanent disability in accordance with a policy or
policies established by the Committee (in its discretion) from time to time. 
 2.12 “Earnings Per Share” means as to any
Performance Period, the Company’s Profit After Tax, divided by a weighted average number of common shares outstanding and dilutive common equivalent shares deemed outstanding, determined in accordance with generally accepted accounting
principles. 
 2.13 “Employee” means any employee of Pixar or its Subsidiaries, whether such employee is so employed at the
time the Plan is adopted or becomes so employed subsequent to the adoption of the Plan. 
 2.14 “Exchange Program” means a
program established by the Committee under which outstanding Awards are amended to provide for a lower Exercise Price or surrendered or cancelled in exchange for (a) Awards with a lower Exercise Price, (b) a different type of Award,
(c) cash, or (d) a combination of (a), (b) and/or (c). 
 2.15 “Exercise Price” means the price at which a
Share may be purchased by a Participant pursuant to the exercise of an Option. 
 2.16 “Fair Market Value” of a share of
Common Stock as of a given date means the average of the highest and lowest of the New York Stock Exchange composite tape market prices at which the shares of Common Stock shall have been sold regular way on the date as of which fair 
  

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 market value is to be determined or, if there shall be no such sale on such date, the next preceding day on which such a
sale shall have occurred. If Common Stock is not listed on the New York Stock Exchange on the date as of which Fair Market Value is to be determined, the Committee shall determine in good faith the Fair Market Value in whatever manner it considers
appropriate. 
 2.17 “Fiscal Year” means the fiscal year of the Company. 
 2.18 “Grant Date” means, with respect to an Award, the date that the Award was granted. The Grant Date of an Award shall not be earlier
than the date the Award is approved by the Committee. 
 2.19 “Incentive Stock Option” means an Option to purchase Shares
that is designated as an Incentive Stock Option and is intended to meet the requirements of Section 422 of the Code. 
 2.20
“Nonemployee Director” means a Director who is not an Employee. 
 2.21 “Nonqualified Stock Option” means
an option to purchase Shares that is not intended to be an Incentive Stock Option. 
 2.22 “Option” means an Incentive Stock
Option or a Nonqualified Stock Option. 
 2.23 “Participant” means an Employee, Consultant, or Nonemployee Director who has
an outstanding Award. 
 2.24 “Performance Goals” means the goal(s) (or combined goal(s)) determined by the Committee (in
its discretion) to be applicable to a Participant with respect to an Award. As determined by the Committee, the Performance Goals applicable to an Award may provide for a targeted level or levels of achievement using one or more of the following
measures: (a) Earnings Per Share, (b) Profit After Tax, (c) Return on Equity, (d) Revenue, and (e) Total Shareholder Return. The Performance Goals may differ from Participant to Participant and from Award to Award. Any
criteria used may be measured, as applicable, (i) in absolute terms, (ii) in relative terms (including, but not limited to, passage of time and/or against another company or companies), (iii) on a per-share basis, (iv) against
the performance of the Company as a whole or of a particular audio/visual product or software product of the Company or any other Company product related to such products, and/or (v) on a pre-tax or after-tax basis. Prior to the determination
date, the Committee shall determine whether any element(s) or item(s) shall be included in or excluded from the calculation of any Performance Goal with respect to any Participants. 
 2.25 “Performance Period” means any Fiscal Year or such longer period as determined by the Committee in its sole discretion. 

2.26 “Performance Share” means an Award granted to a Participant pursuant to Section 9. 
 2.27 “Performance Unit” means an Award granted to a Participant pursuant to Section 8. 
  

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 2.28 “Period of Restriction” means the period during which the transfer of Shares of
Restricted Stock are subject to restrictions and therefore, the Shares are subject to a substantial risk of forfeiture. As provided in Section 7, such restrictions may be based on the passage of time, the achievement of target levels of
performance, or the occurrence of other events as determined by the Committee, in its discretion. 
 2.29 “Plan” means The
Walt Disney Company/Pixar 2004 Equity Incentive Plan, as set forth in this instrument and as hereafter amended from time to time. 
 2.30
“Profit After Tax” means as to any Performance Period, the Company’s income after taxes, determined in accordance with generally accepted accounting principles. 
 2.31 “Restricted Stock” means an Award granted to a Participant pursuant to Section 7. 
 2.32 “Retirement” means, in the case of an Employee or a Nonemployee Director, a Termination of Service occurring in accordance with a
policy or policies established by the Committee (in its discretion) from time to time. With respect to a Consultant, no Termination of Service shall be deemed to be on account of “Retirement.” 
 2.33 “Return on Equity” means as to any Performance Period, the percentage equal to the Company’s Profit After Tax divided by
average shareholder’s equity, determined in accordance with generally accepted accounting principles. 
 2.34 “Revenue”
means as to any Performance Period, the Company’s net revenues generated from third parties, determined in accordance with generally accepted accounting principles. 
 2.35 “Rule 16b-3” means Rule 16b-3 promulgated under the 1934 Act, and any future regulation amending, supplementing or superseding such regulation. 
 2.36 “Section 16 Person” means a person who, with respect to the Shares, is subject to Section 16 of the 1934 Act. 
 2.37 “Shares” means the shares of common stock of the Company. 
 2.38 “Stock Appreciation Right” or “SAR” means an Award, granted alone or in connection with a related Option, that
pursuant to Section 6 is designated as an SAR. 
 2.39 “Subsidiary” means any corporation in an unbroken chain of
corporations beginning with the Company or Pixar, as applicable, as the corporation at the top of the chain, but only if each of the corporations below the Company (other than the last corporation in the unbroken chain) then owns stock possessing
fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 
  

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 2.40 “Termination of Service” means (a) in the case of an Employee, a cessation of
the employee-employer relationship between the Employee and the Company or an Affiliate for any reason, including, but not by way of limitation, a termination by resignation, discharge, death, Disability, Retirement, or the disaffiliation of an
Affiliate, but excluding any such termination where there is a simultaneous reemployment by the Company or an Affiliate; (b) in the case of a Consultant, a cessation of the service relationship between the Consultant and the Company or an
Affiliate for any reason, including, but not by way of limitation, a termination by resignation, discharge, death, Disability, or the disaffiliation of an Affiliate, but excluding any such termination where there is a simultaneous re-engagement of
the consultant by the Company or an Affiliate; and (c) in the case of a Nonemployee Director, a cessation of the Director’s service on the Board for any reason, including, but not by way of limitation, a termination by resignation, death,
Disability, Retirement or non-reelection to the Board. 
 2.41 “Total Shareholder Return” means as to any Performance
Period, the total return (change in share price plus reinvestment of any dividends) of a Share. 
 SECTION 3 
 ADMINISTRATION 
 3.1 The Committee. The
Plan shall be administered by the Committee (and/or the Board, as determined by the Board). The Committee shall consist of not less than two (2) Directors who shall be appointed from time to time by, and shall serve at the pleasure of, the
Board of Directors. Unless determined otherwise by the Board, the Committee shall be comprised solely of Directors who are (a) “outside directors” under Section 162(m) of the Code, and (b) “non-employee directors”
under Rule 16b-3. 
 3.2 Authority of the Committee. It shall be the duty of the Committee to administer the Plan in accordance with
the Plan’s provisions. The Committee shall have all powers and discretion necessary or appropriate to administer the Plan and to control its operation, including, but not limited to, the power to (a) determine which Employees, Consultants
and Directors shall be granted Awards, (b) prescribe the terms and conditions of the Awards, (c) interpret the Plan and the Awards, (d) adopt such procedures and subplans as are necessary or appropriate to permit participation in the
Plan by Employees, Consultants and Directors who are foreign nationals or employed outside of the United States, (e) implement an Exchange Program, (f) adopt rules for the administration, interpretation and application of the Plan as are
consistent therewith, and (g) interpret, amend or revoke any such rules. 
 3.3 Delegation by the Committee. The Committee, in
its sole discretion and on such terms and conditions as it may provide, may delegate all or any part of its authority and powers under the Plan to one or more Directors or officers of the Company. Notwithstanding the foregoing, with respect to
Awards that are intended to qualify as performance-based compensation under Section 162(m) of the Code, the Committee may not delegate its authority and powers with respect to such Awards if such delegation would cause the Awards to fail to so
qualify (unless determined otherwise by the Board). 
  

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 3.4 Decisions Binding. All determinations and decisions made by the Committee, the Board, and any
delegate of the Committee pursuant to the provisions of the Plan shall be final, conclusive, and binding on all persons, and shall be given the maximum deference permitted by law. 
 SECTION 4 
 SHARES SUBJECT TO THE PLAN 
 4.1 Number of Shares. Subject to adjustment as provided in Section 4.3, the total number of Shares available for issuance under the Plan as
of the closing of the Merger shall equal the sum of (a) 23,859,591, and (b) any Shares (not to exceed 48,300,000) that otherwise would have been returned to the 1995 Stock Plan and 1995 Director Option Plan as of August 20, 2004, on
account of the expiration, cancellation or forfeiture of awards granted thereunder. In addition, on each January 1 (beginning January 1, 2005 and ending January 1, 2014) the number of Shares available under the Plan shall be increased
by an amount equal to the lesser of (i) the product of 3% of the outstanding Shares on the immediately preceding date and the percentage of the Company’s outstanding stock into which Pixar stock was converted as of the effective time of
the Merger, and (ii) an amount determined by the Board. No more than 36,800,000 of the Shares available under the Plan may be issued pursuant to Awards that are Incentive Stock Options. Shares granted under the Plan may be either authorized but
unissued Shares or treasury Shares. 
 4.2 Lapsed Awards. If an Award is settled in cash, or is cancelled, terminates, expires, or
lapses for any reason, any Shares subject to such Award again shall be available to be the subject of an Award, except as determined by the Committee. 
 4.3 Adjustments in Awards and Authorized Shares. In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, stock split,
reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the Company, or other change in the corporate structure of the Company affecting the Shares such
that an adjustment is determined by the Committee (in its sole discretion) to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the Committee shall, in
such manner as it may deem equitable, adjust the number and class of Shares that may be issued under the Plan, the number and class of Shares that may be added annually to the Shares reserved under the Plan, the number, class, and price of Shares
subject to outstanding Awards, and the numerical limits of Sections 4.1, 5.1, 6.1, 7.1, 8.1, 9.1 and 10.1. Notwithstanding the preceding, the number of Shares subject to any Award always shall be a whole number. 
 SECTION 5 
 STOCK OPTIONS 
 5.1 Grant of Options. Subject to the terms and provisions of the Plan, Options may be granted to Employees, Directors and Consultants at any time
and from time to time as determined by the Committee in its sole discretion. The Committee, in its sole discretion, shall determine the number of Shares subject to each Option, provided that during any Fiscal Year, no Participant shall 

 

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 be granted Options (and/or other Awards) covering more than a total of 13,800,000 Shares. Subject to Section 12.2,
the Committee may grant Incentive Stock Options, Nonqualified Stock Options, or a combination thereof. 
 5.2 Award Agreement. Each
Option shall be evidenced by an Award Agreement that shall specify the Exercise Price, the expiration date of the Option, the number of Shares covered by the Option, any conditions to exercise the Option, and such other terms and conditions as the
Committee, in its discretion, shall determine. The Award Agreement shall also specify whether the Option is intended to be an Incentive Stock Option or a Nonqualified Stock Option. 
 5.3 Exercise Price. Subject to the provisions of this Section 5.3, the Exercise Price for each Option shall be determined by the Committee in
its sole discretion. 
 5.3.1 Nonqualified Stock Options. The Exercise Price of each Nonqualified Stock option shall be determined by
the Committee in its discretion but shall be not less than one hundred percent (100%) of the Fair Market Value of a Share on the Grant Date. 
 5.3.2 Incentive Stock Options. In the case of an Incentive Stock Option, the Exercise Price shall be not less than one hundred percent (100%) of the Fair Market Value of a Share on the Grant Date; provided, however, that if on
the Grant Date, the Employee (together with persons whose stock ownership is attributed to the Employee pursuant to Section 424(d) of the Code) owns stock possessing more than 10% of the total combined voting power of all classes of stock of
the Company or any of its Subsidiaries, the Exercise Price shall be not less than one hundred and ten percent (110%) of the Fair Market Value of a Share on the Grant Date. 
 5.3.3 Substitute Options. Notwithstanding the provisions of Section 5.3.2, in the event that the Company or an Affiliate consummates a
transaction described in Section 424(a) of the Code (e.g., the acquisition of property or stock from an unrelated corporation), persons who become Employees, Nonemployee Directors or Consultants on account of such transaction may be granted
Options in substitution for options granted by their former employer. If such substitute Options are granted, the Committee, in its sole discretion and consistent with Section 424(a) of the Code, may determine that such substitute Options shall
have an exercise price less than one hundred percent (100%) of the Fair Market Value of the Shares on the Grant Date. 
 5.4
Expiration of Options. 
 5.4.1 Expiration Dates. Each Option shall terminate no later than the first to occur of the following
events: 
 (a) The date for termination of the Option set forth in the written Award Agreement; or 
 (b) The expiration of ten (10) years from the Grant Date. 
 5.4.2 Death of Participant. Notwithstanding Section 5.4.1, if a Participant dies prior to the expiration of his or her Options, the Committee, in its discretion, may provide that his or her Options shall
be exercisable for up to three (3) years after the date of death. 
  

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 5.4.3 Committee Discretion. Subject to the ten and thirteen-year limits of Sections 5.4.1 and
5.4.2, the Committee, in its sole discretion, (a) shall provide in each Award Agreement when each Option expires and becomes unexercisable, and (b) may, after an Option is granted, extend the maximum term of the Option (subject to
Section 5.8.4 regarding Incentive Stock Options). 
 5.5 Exercisability of Options. Options granted under the Plan shall be
exercisable at such times and be subject to such restrictions and conditions as the Committee shall determine in its sole discretion. After an Option is granted, the Committee, in its sole discretion, may accelerate the exercisability of the Option.

 5.6 Payment. Options shall be exercised by the Participant giving notice and following such procedures as the Company (or its
designee) may specify from time to time. Exercise of an Option also requires that the Participant make arrangements satisfactory to the Company for full payment of the Exercise Price for the Shares. All exercise notices shall be given in the form
and manner specified by the Company from time to time. The Exercise Price shall be payable to the Company in full in cash or its equivalent. The Committee, in its sole discretion, also may permit exercise (a) by tendering previously acquired
Shares having an aggregate Fair Market Value at the time of exercise equal to the total Exercise Price, or (b) by any other means which the Committee, in its sole discretion, determines to both provide legal consideration for the Shares, and to
be consistent with the purposes of the Plan. Any Shares tendered in payment of the Exercise Price of an Option must have been owned by the Participant (or any beneficiary) for at least six (6) months prior to the date of exercise, unless
determined otherwise by Committee (in its sole discretion). As soon as practicable after receipt of a notification of exercise satisfactory to the Company and full payment for the Shares purchased, the Company shall deliver to the Participant (or
the Participant’s designated broker), Share certificates (which may be in book entry form) representing such Shares. 
 5.7
Restrictions on Share Transferability. The Committee may impose such restrictions on any Shares acquired pursuant to the exercise of an Option as it may deem advisable, including, but not limited to, restrictions related to applicable federal
securities laws, the requirements of any national securities exchange or system upon which Shares are then listed or traded, or any blue sky or state securities laws. 
 5.8 Certain Additional Provisions for Incentive Stock Options. 
 5.8.1 Exercisability. The
aggregate Fair Market Value (determined on the Grant Date(s)) of the Shares with respect to which Incentive Stock Options are exercisable for the first time by any Employee during any calendar year (under all plans of the Company and its
Subsidiaries) shall not exceed $100,000. 
 5.8.2 Termination of Service. No Incentive Stock Option may be exercised more than three
(3) months after the Participant’s Termination of Service for any reason other than Disability or death, unless (a) the Participant dies during such three-month period, and/or (b) the Award Agreement or the Committee permits
later exercise (in which case the Option instead may be deemed to be a Nonqualified Stock Option). No Incentive Stock Option may be exercised more than 
  

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 one (1) year after the Participant’s Termination of Service on account of Disability, unless (a) the
Participant dies during such one-year period, and/or (b) the Award Agreement or the Committee permit later exercise (in which case the option instead may be deemed to be a Nonqualified Stock Option). 
 5.8.3 Employees Only. Incentive Stock Options may be granted only to persons who are Employees on the Grant Date. 
 5.8.4 Expiration. No Incentive Stock Option may be exercised after the expiration of ten (10) years from the Grant Date; provided, however,
that if the Option is granted to an Employee who, together with persons whose stock ownership is attributed to the Employee pursuant to Section 424(d) of the Code, owns stock possessing more than 10% of the total combined voting power of all
classes of the stock of the Company or any of its Subsidiaries, the Option may not be exercised after the expiration of five (5) years from the Grant Date. 
 SECTION 6 
 STOCK APPRECIATION RIGHTS 
 6.1 Grant of SARs. Subject to the terms and conditions of the Plan, SARs may be granted to Employees, Directors and Consultants at any time and
from time to time as shall be determined by the Committee, in its sole discretion. 
 6.1.1 Number of Shares. The Committee shall have
complete discretion to determine the number of SARs granted to any Participant, provided that during any Fiscal Year, no Participant shall be granted SARs (and/or other Awards) covering more than a total of 13,800,000 Shares. 
 6.1.2 Exercise Price and Other Terms. The Committee, subject to the provisions of the Plan, shall have complete discretion to determine the terms
and conditions of SARs granted under the Plan. The Exercise Price of each SAR shall be determined by the Committee in its discretion but shall not be less than one hundred percent (100%) of the Fair Market Value of a Share on the Grant Date.

 6.2 SAR Agreement. Each SAR grant shall be evidenced by an Award Agreement that shall specify the exercise price, the term of the
SAR, the conditions of exercise, and such other terms and conditions as the Committee, in its sole discretion, shall determine. 
 6.3
Expiration of SARs. An SAR granted under the Plan shall expire upon the date determined by the Committee, in its sole discretion, and set forth in the Award Agreement. Notwithstanding the foregoing, the rules of Section 5.4 also shall
apply to SARs. 
 6.4 Payment of SAR Amount. Upon exercise of an SAR, a Participant shall be entitled to receive payment from the
Company in an amount determined by multiplying: 
 (a) The difference between the Fair Market Value of a Share on the date of exercise over
the exercise price; times 
  

 -9- 

 (b) The number of Shares with respect to which the SAR is exercised. At the discretion of the Committee,
the payment upon SAR exercise may be in cash, in Shares of equivalent value, or in some combination thereof. 
 SECTION 7 
 RESTRICTED STOCK 
 7.1 Grant of Restricted
Stock. Subject to the terms and provisions of the Plan, the Committee, at any time and from time to time, may grant Shares of Restricted Stock to Employees, Directors and Consultants as the Committee, in its sole discretion, shall determine. The
Committee, in its sole discretion, shall determine the number of Shares to be granted to each Participant, provided that during any Fiscal Year, no Participant shall receive more than a total of 13,800,000 Shares of Restricted Stock (and/or other
Awards). 
 7.2 Restricted Stock Agreement. Each Award of Restricted Stock shall be evidenced by an Award Agreement that shall specify
the Period of Restriction, the number of Shares granted, and such other terms and conditions as the Committee, in its sole discretion, shall determine. Unless the Committee determines otherwise, Shares of Restricted Stock shall be held by the
Company as escrow agent until the restrictions on such Shares have lapsed. 
 7.3 Transferability. Except as provided in this
Section 7, Shares of Restricted Stock may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until the end of the applicable Period of Restriction. 
 7.4 Other Restrictions. The Committee, in its sole discretion, may impose such other restrictions on Shares of Restricted Stock as it may deem
advisable or appropriate, in accordance with this Section 7.4. 
 7.4.1 General Restrictions. The Committee may set restrictions
based upon continued employment or service with the Company and its Affiliates, the achievement of specific performance objectives (Company-wide, departmental, or individual), applicable federal or state securities laws, or any other basis
determined by the Committee in its discretion. 
 7.4.2 Section 162(m) Performance Restrictions. For purposes of qualifying
grants of Restricted Stock as “performance-based compensation” under Section 162(m) of the Code, the Committee, in its discretion, may set restrictions based upon the achievement of Performance Goals. The Performance Goals shall be
set by the Committee on or before the latest date permissible to enable the Restricted Stock to qualify as “performance-based compensation” under Section 162(m) of the Code. In granting Restricted Stock which is intended to qualify
under Section 162(m) of the Code, the Committee shall follow any procedures determined by it from time to time to be necessary or appropriate to ensure qualification of the Restricted Stock under Section 162(m) of the Code (e.g., in
determining the Performance Goals). 
  

 -10- 

 7.4.3 Legend on Certificates. The Committee, in its discretion, may legend the certificates
representing Restricted Stock to give appropriate notice of such restrictions. 
 7.5 Removal of Restrictions. Except as otherwise
provided in this Section 7, Shares of Restricted Stock covered by each Restricted Stock grant made under the Plan shall be released from escrow as soon as practicable after the last day of the Period of Restriction. The Committee, in its
discretion, may accelerate the time at which any restrictions shall lapse or be removed. After the restrictions have lapsed, the Participant shall be entitled to have any legend or legends under Section 7.4.3 removed from his or her Share
certificate and the Shares shall be freely transferable by the Participant. The Committee (in its discretion) may establish procedures regarding the release of Shares from escrow and the removal of legends, as necessary or appropriate to minimize
administrative burdens on the Company 
 7.6 Voting Rights. During the Period of Restriction, Participants holding Shares of
Restricted Stock granted hereunder may exercise full voting rights with respect to those Shares, unless the Committee determines otherwise. 
 7.7 Dividends and Other Distributions. During the Period of Restriction, Participants holding Shares of Restricted Stock shall be entitled to receive all dividends and other distributions paid with respect to such Shares unless
otherwise provided in the Award Agreement. Any such dividends or distribution shall be subject to the same restrictions on transferability and forfeitability as the Shares of Restricted Stock with respect to which they were paid, unless otherwise
provided in the Award Agreement. 
 7.8 Return of Restricted Stock to Company. On the date set forth in the Award Agreement, the
Restricted Stock for which restrictions have not lapsed shall revert to the Company and again shall become available for grant under the Plan. 
 SECTION 8 
 PERFORMANCE UNITS 
 8.1 Grant of Performance Units. Performance Units may be granted to Employees, Directors and Consultants at any time and from time to time, as shall be determined by the Committee, in its sole discretion. The Committee shall have
complete discretion in determining the number of Performance Units granted to each Participant provided that during any Fiscal Year, no Participant shall receive Performance Units having an initial value greater than $3,000,000. 
 8.2 Value of Performance Units. Each Performance Unit shall have an initial value that is established by the Committee on or before the Grant
Date. 
 8.3 Performance Objectives and Other Terms. The Committee, in its discretion, shall set performance objectives or other
vesting criteria which, depending on the extent to which they are met, will determine the number or value of Performance Units that will be paid out to the Participants. Each Award of Performance Units shall be evidenced by an Award Agreement that
shall specify the Performance Period, and such other terms and conditions as the Committee, in its sole discretion, shall determine. 
  

 -11- 

 8.3.1 General Performance Objectives or Vesting Criteria. The Committee may set performance
objectives or vesting criteria based upon the achievement of Company-wide, departmental, or individual goals, applicable federal or state securities laws, or any other basis determined by the Committee in its discretion (for example, but not by way
of limitation, continuous service as an Employee, Director or Consultant). 
 8.3.2 Section 162(m) Performance Objectives. For
purposes of qualifying grants of Performance Units as “performance-based compensation” under Section 162(m) of the Code, the Committee, in its discretion, may determine that the performance objectives applicable to Performance Units
shall be based on the achievement of Performance Goals. The Performance Goals shall be set by the Committee on or before the latest date permissible to enable the Performance Units to qualify as “performance-based compensation” under
Section 162(m) of the Code. In granting Performance Units that are intended to qualify under Section 162(m) of the Code, the Committee shall follow any procedures determined by it from time to time to be necessary or appropriate to ensure
qualification of the Performance Units under Section 162(m) of the Code (e.g., in determining the Performance Goals). 
 8.4 Earning
of Performance Units. After the applicable Performance Period has ended, the holder of Performance Units shall be entitled to receive a payout of the number of Performance Units earned by the Participant over the Performance Period, to be
determined as a function of the extent to which the corresponding performance objectives have been achieved. After the grant of a Performance Unit, the Committee, in its sole discretion, may reduce or waive any performance objectives for such
Performance Unit. 
 8.5 Form and Timing of Payment of Performance Units. Payment of earned Performance Units shall be made as soon as
practicable after the expiration of the applicable Performance Period. The Committee, in its sole discretion, may pay earned Performance Units in the form of cash, in Shares (which have an aggregate Fair Market Value equal to the value of the earned
Performance Units at the close of the applicable Performance Period) or in a combination thereof. 
 8.6 Cancellation of Performance
Units. On the date set forth in the Award Agreement, all unearned or unvested Performance Units shall be forfeited to the Company, and again shall be available for grant under the Plan. 
 SECTION 9 
 PERFORMANCE SHARES 
 9.1 Grant of Performance Shares. Performance Shares may be granted to Employees, Directors and Consultants at any time and from time to time, as
shall be determined by the Committee, in its sole discretion. The Committee shall have complete discretion in determining the number of Performance Shares granted to each Participant, provided that during any Fiscal Year, no Participant shall be
granted more than a total of 13,800,000 Performance Shares (and/or other Awards). 
  

 -12- 

 9.2 Value of Performance Shares. Each Performance Share shall have an initial value equal to the
Fair Market Value of a Share on the Grant Date. 
 9.3 Performance Share Agreement. Each Award of Performance Shares shall be
evidenced by an Award Agreement that shall specify any vesting conditions, the number of Performance Shares granted, and such other terms and conditions as the Committee, in its sole discretion, shall determine. 
 9.4 Performance Objectives and Other Terms. The Committee, in its discretion, shall set performance objectives or other vesting criteria which,
depending on the extent to which they are met, will determine the number or value of Performance Shares that will be paid out to the Participants. Each Award of Performance Shares shall be evidenced by an Award Agreement that shall specify the
Performance Period, and such other terms and conditions as the Committee, in its sole discretion, shall determine. 
 9.4.1 General
Performance Objectives or Vesting Criteria. The Committee may set performance objectives or vesting criteria based upon the achievement of Company-wide, departmental, or individual goals, applicable federal or state securities laws, or any other
basis determined by the Committee in its discretion (for example, but not by way of limitation, continuous service as an Employee, Director or Consultant). 
 9.4.2 Section 162(m) Performance Objectives. For purposes of qualifying grants of Performance Shares as “performance-based compensation” under Section 162(m) of the Code, the Committee, in
its discretion, may determine that the performance objectives applicable to Performance Shares shall be based on the achievement of Performance Goals. The Performance Goals shall be set by the Committee on or before the latest date permissible to
enable the Performance Shares to qualify as “performance-based compensation” under Section 162(m) of the Code. In granting Performance Shares that are intended to qualify under Section 162(m) of the Code, the Committee shall
follow any procedures determined by it from time to time to be necessary or appropriate to ensure qualification of the Performance Shares under Section 162(m) of the Code (e.g., in determining the Performance Goals). 
 9.5 Earning of Performance Shares. After the applicable Performance Period has ended, the holder of Performance Shares shall be entitled to
receive a payout of the number of Performance Shares earned by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding performance objectives have been achieved. After the grant of a
Performance Share, the Committee, in its sole discretion, may reduce or waive any performance objectives for such Performance Share. 
 9.6
Form and Timing of Payment of Performance Shares. Payment of vested Performance Shares shall be made as soon as practicable after vesting (subject to any deferral permitted under Section 11.1). The Committee, in its sole discretion, may
pay Performance Shares in the form of cash, in Shares or in a combination thereof. 
  

 -13- 

 9.7 Cancellation of Performance Shares. On the date set forth in the Award Agreement, all unvested
Performance Shares shall be forfeited to the Company, and except as otherwise determined by the Committee, again shall be available for grant under the Plan. 
 SECTION 10 
 [INTENTIONALLY OMITTED] 
 SECTION 11 
 MISCELLANEOUS 
 11.1 Deferrals. The Committee, in its sole discretion, may permit a Participant to defer receipt of the payment of cash or the delivery of Shares
that would otherwise be due to such Participant under an Award. Any such deferral elections shall be subject to such rules and procedures as shall be determined by the Committee in its sole discretion. 
 11.2 No Effect on Employment or Service. Nothing in the Plan shall interfere with or limit in any way the right of the Company to terminate any
Participant’s employment or service at any time, with or without cause. For purposes of the Plan, transfer of employment of a Participant between the Company and any one of its Subsidiaries (or between its Subsidiaries) shall not be deemed a
Termination of Service. Employment with the Company and its Subsidiaries is on an at-will basis only. 
 11.3 Participation. No
Employee, Director or Consultant shall have the right to be selected to receive an Award under this Plan, or, having been so selected, to be selected to receive a future Award. 
 11.4 Indemnification. Each person who is or shall have been a member of the Committee, or of the Board, shall be indemnified and held harmless by
the Company against and from (a) any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party
or in which he or she may be involved by reason of any action taken or failure to act under the Plan or any Award Agreement, and (b) from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by
him or her in satisfaction of any judgment in any such claim, action, suit, or proceeding against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to
handle and defend it on his or her own behalf. 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 Articles of Incorporation or Bylaws,
by contract, as a matter of law, or otherwise, or under any power that the Company may have to indemnify them or hold them harmless. 
  

 -14- 

 11.5 Successors. All obligations of the Company under the Plan, with respect to Awards granted
hereunder, shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business or assets of the
Company. 
 11.6 Beneficiary Designations. If permitted by the Committee, a Participant under the Plan may name a beneficiary or
beneficiaries to whom any vested but unpaid Award shall be paid in the event of the Participant’s death. Each such designation shall revoke all prior designations by the Participant and shall be effective only if given in a form and manner
acceptable to the Committee. In the absence of any such designation, any vested benefits remaining unpaid at the Participant’s death shall be paid to the Participant’s estate and, subject to the terms of the Plan and of the applicable
Award Agreement, any unexercised vested Award may be exercised by the administrator or executor of the Participant’s estate. 
 11.7
Limited Transferability of Awards. No Award granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will, by the laws of descent and distribution, or to the limited extent
provided in Section 11.6. All rights with respect to an Award granted to a Participant shall be available during his or her lifetime only to the Participant. Notwithstanding the foregoing, a Participant may, if the Committee (in its discretion)
so permits, transfer an Award to an individual or entity other than the Company. Any such transfer shall be made in accordance with such procedures as the Committee may specify from time to time. 
 11.8 No Rights as Shareholder. Except to the limited extent provided in Sections 7.6, no Participant (nor any beneficiary) shall have any of the
rights or privileges of a shareholder of the Company with respect to any Shares issuable pursuant to an Award (or exercise thereof), unless and until certificates representing such Shares shall have been issued, recorded on the records of the
Company or its transfer agents or registrars, and delivered to the Participant (or beneficiary). 
 SECTION 12 
 AMENDMENT, TERMINATION, AND DURATION 
 12.1
Amendment, Suspension, or Termination. The Board, in its sole discretion, may amend, suspend or terminate the Plan, or any part thereof, at any time and for any reason. The amendment, suspension, or termination of the Plan shall not, without
the consent of the Participant, alter or impair any rights or obligations under any Award theretofore granted to such Participant. Notwithstanding anything to the contrary in the Plan, the Company reserves the right, but not the obligation, to
revise the Plan and any Awards as it deems necessary or advisable, in its sole discretion and without the consent of the Participant, to comply with Section 409A of the Code or to otherwise avoid imposition of any additional tax or income
recognition under Section 409A of the Code. No Award may be granted during any period of suspension or after termination of the Plan. 
  

 -15- 

 12.2 Duration of the Plan. The Plan became effective August 20, 2004, and subject to
Section 12.1 (regarding the Board’s right to amend or terminate the Plan), shall remain in effect thereafter. However, without further shareholder approval, no Incentive Stock Option may be granted under the Plan following the Merger.

 SECTION 13 
 TAX WITHHOLDING

 13.1 Withholding Requirements. Prior to the delivery of any Shares or cash pursuant to an Award (or exercise thereof), the Company
shall have the power and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy federal, state, and local taxes (including the Participant’s FICA obligation) required to be withheld
with respect to such Award (or exercise thereof). 
 13.2 Withholding Arrangements. The Committee, in its sole discretion and pursuant
to such procedures as it may specify from time to time, may permit a Participant to satisfy such tax withholding obligation, in whole or in part by (a) electing to have the Company withhold otherwise deliverable Shares, or (b) delivering
to the Company already-owned Shares having a Fair Market Value equal to the minimum amount required to be withheld. 
 SECTION 14 

LEGAL CONSTRUCTION 
 14.1 Gender and
Number. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine; the plural shall include the singular and the singular shall include the plural. 
 14.2 Severability. In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not
affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 
 14.3 Requirements of Law. The granting of Awards and the issuance of Shares under the Plan shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities
exchanges as may be required. 
 14.4 Securities Law Compliance. With respect to Section 16 Persons, transactions under this Plan
are intended to qualify for the exemption provided by Rule 16b-3. To the extent any provision of the Plan, Award Agreement or action by the Committee fails to so comply, it shall be deemed null and void, to the extent permitted by law and deemed
advisable or appropriate by the Committee. 
 14.5 Governing Law. The Plan and all Award Agreements shall be construed in accordance
with and governed by the laws of the State of Delaware (with the exception of its conflict of laws provisions). 
 14.6 Captions.
Captions are provided herein for convenience only, and shall not serve as a basis for interpretation or construction of the Plan. 
  

 -16-Consulting Agreement

 Exhibit 10.1 
 CONSULTING AGREEMENT 
 This Consulting Agreement (“Agreement”) is executed as of the date shown on the
signature page (“Effective Date”), by and between Financial Leadership Group, LLC, a California limited liability company (“FLG”), and the entity identified on the signature page (“Client”). 
 RECITALS 
 WHEREAS,
FLG is in the business of providing certain financial services; 
 WHEREAS, Client wishes to retain FLG to provide and FLG wishes to provide such services to
Client on the terms set forth herein; 
 NOW, THEREFORE, in consideration of the mutual covenants set forth herein, the
parties hereto agree as follows: 
  

	1.	Services. 

  

	 	A.	Commencing on the Effective Date, FLG will perform those services (the “Services”) described in Exhibit A attached hereto. Such services shall be performed by the member
of FLG identified in Exhibit A (the “FLG Member”). 

  

	 	B.	Client acknowledges and agrees that FLG’s success in performing the Services hereunder may depend upon the participation, cooperation and support of Client’s most senior
management. 

  

	 	C.	The Services provided by FLG and FLG Member hereunder shall not constitute an audit, attestation, review, compilation, or any other type of financial statement reporting engagement
(historical or prospective) that is subject to the rules of the California Board of Accountancy, the AICPA or other similar state or national licensing or professional bodies. Client agrees that any such services, if required, will be performed
separately by its independent public accountants. 

  

	 	D.	During the term of this Agreement, Client shall not hire or retain the FLG Member as an employee, consultant or independent contractor except pursuant to this Agreement.

  

	2.	Compensation; Payment; Deposit; Expenses. 

  

	 	A.	As compensation for Services rendered by FLG hereunder, Client shall pay FLG the amounts set forth in Exhibit A for Services performed by FLG hereunder (the “Fees”). The
Fees shall be net of any and all taxes, withholdings, duties, customs or other reductions imposed by any and all authorities, including ad valorem, sales or similar taxes, but excluding US income taxes based upon FLG’s or FLG Member’s net
taxable income. 

  

	 	B.	As additional compensation to FLG, Client will pay FLG the incentive bonus or warrants or options, if any, set forth in Exhibit A. 

  

	 	C.	Client shall pay FLG all amounts owed to FLG under this Agreement upon Client’s receipt of invoice. Any invoices more than thirty (30) days overdue will accrue a late
payment fee at the rate of one and 50/100 percent (1.5%) per month. FLG shall be entitled to recover all costs and expenses (including, without limitation, attorneys’ fees) incurred by it in collecting any amounts overdue under this
Agreement. 

  

	 	D.	Client hereby pays to FLG a deposit as set forth on Exhibit A (the “Deposit”) for Client’s future payment obligations to FLG under this agreement, against which FLG
shall charge amounts owed to FLG under this Agreement. Upon termination of this Agreement, all amounts then owing to FLG under this Agreement shall be charged against the Deposit and the balance thereof, if any, shall be refunded to Client.

  

	 	E.	Within five (5) days of Client’s receipt of an expense report from the FLG Member performing Services hereunder, Client shall immediately reimburse the FLG Member directly
for reasonable travel and out-of-pocket business expenses detailed in such expense report. 

  

	3.	Relationship of the Parties. 

  

	 	A.	FLG’s relationship with Client will be that of an independent contractor and nothing in this Agreement and none of the Services performed pursuant to this Agreement shall be
construed to create a partnership, joint venture, or employer-employee relationship. FLG is not the agent of Client and is not authorized to make any presentation, contract, or commitment on behalf of Client unless specifically requested or
authorized to do so by Client in writing. FLG agrees that all taxes payable as a result of compensation payable to FLG hereunder shall be FLG’s sole liability. FLG shall defend, indemnify and hold harmless Client, Client’s officers,
directors, employees and agents, and the administrators of Client’s benefit plans from and against any claims, liabilities or expenses relating to such taxes or compensation. 

  

	4.	Term and Termination. 

  

	 	A.	The term of this Agreement shall be for the period set forth in Exhibit A. 

  

	 	B.	Either party may terminate this Agreement upon thirty (30) days’ advance written notice to the other party. 

  

	 	C.	Either party may terminate this Agreement immediately upon a material breach of this Agreement by the other party and a failure by the other party to cure such breach within ten
(10) days of written notice thereof by the non-breaching party to the breaching party. 

  

	 	D.	FLG shall have the right to terminate this Agreement immediately without advance written notice (i) if Client is engaged in, or requests that FLG or the FLG Member undertake or
ignore any illegal or unethical activity, or (ii) upon the death or disability of the FLG Member. 

  

	5.	IRS Circular 230 Disclosure: 

 To ensure compliance with
requirements imposed by the IRS effective June 20, 2005, we hereby inform you that any tax advice offered during the course of providing, or arising out of, the Services rendered pursuant to this Agreement, unless expressly stated otherwise, is
not intended or written to be used, and cannot be used, for the purpose of: (i) avoiding tax-related penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any tax-related matter(s) said
tax advice address(es). 
  

	6.	DISCLAIMERS AND LIMITATION OF LIABILITY. 

 ALL SERVICES TO
BE PROVIDED BY FLG AND FLG MEMBER (FOR PURPOSES OF THIS PARAGRAPH 6, COLLECTIVELY “FLG”) HEREUNDER ARE PROVIDED “AS IS” WITHOUT ANY WARRANTY WHATSOEVER. CLIENT RECOGNIZES THAT THE “AS IS” CLAUSE OF THIS AGREEMENT IS AN
IMPORTANT 
  

					
	Initial: Client          FLG         	  	Page 1 of 5	  	

 CONSULTING AGREEMENT 
 PART OF THE BASIS OF THIS AGREEMENT, WITHOUT WHICH FLG WOULD NOT HAVE AGREED TO ENTER INTO THIS AGREEMENT. FLG EXPRESSLY DISCLAIMS ALL OTHER WARRANTIES, TERMS OR CONDITIONS, WHETHER EXPRESS, IMPLIED, OR STATUTORY,
REGARDING THE PROFESSIONAL SERVICES, INCLUDING ANY, WARRANTIES OF MERCHANTABILITY, TITLE, FITNESS FOR A PARTICULAR PURPOSE AND INFRINGEMENT. NO REPRESENTATION OR OTHER AFFIRMATION OF FACT, REGARDING THE SERVICES PROVIDED HEREUNDER SHALL BE DEEMED A
WARRANTY FOR ANY PURPOSE OR GIVE RISE TO ANY LIABILITY OF FLG WHATSOEVER. 
 IN NO EVENT SHALL FLG BE LIABLE FOR ANY INCIDENTAL, INDIRECT,
EXEMPLARY, SPECIAL, PUNITIVE OR CONSEQUENTIAL DAMAGES, UNDER ANY CIRCUMSTANCES, INCLUDING, BUT NOT LIMITED TO: LOST PROFITS; REVENUE OR SAVINGS; OR THE LOSS OF USE OF ANY DATA, EVEN IF CLIENT OR FLG HAVE BEEN ADVISED OF, KNEW, OR SHOULD HAVE KNOWN,
OF THE POSSIBILITY THEREOF. NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE CONTRARY, FLG’S AGGREGATE CUMULATIVE LIABILITY HEREUNDER, WHETHER IN CONTRACT, TORT, NEGLIGENCE, MISREPRESENTATION, STRICT LIABILITY OR OTHERWISE, SHALL NOT EXCEED AN
AMOUNT EQUAL TO TOTAL FEES PAYABLE BY CLIENT UNDER SECTION 2(A) OF THIS AGREEMENT. CLIENT ACKNOWLEDGES THAT THE COMPENSATION PAID BY IT UNDER THIS AGREEMENT REFLECTS THE ALLOCATION OF RISK SET FORTH IN THIS AGREEMENT AND THAT FLG WOULD NOT ENTER
INTO THIS AGREEMENT WITHOUT THESE LIMITATIONS ON ITS LIABILITY. 
 As a condition for recovery of any amount by Client against FLG, Client
shall give FLG written notice of the alleged basis for liability within ninety (90) days of discovering the circumstances giving rise thereto, in order that FLG will have the opportunity to investigate in a timely manner and, where possible,
correct or rectify the alleged basis for liability; provided that the failure of Client to give such notice will only affect the rights of Client to the extent that FLG is actually prejudiced by such failure. Notwithstanding anything herein to the
contrary, Client must assert any claim against FLG within the earlier of three (3) months after discovery or sixty (60) days after the termination of this Agreement. 
  

	7.	Indemnification. 

  

	 	A.	FLG and FLG Member acting in relation to any of the affairs of Client shall, to the fullest extent permitted by law, as now or hereafter in effect, be indemnified and held harmless,
and such right to indemnification shall continue to apply to FLG and FLG Member following the term of this Agreement out of the assets and profits of the Company from and against all actions, costs, charges, losses, damages, liabilities and expenses
which FLG or FLG Member, or FLG’s or FLG Member’s heirs, executors or administrators, shall or may incur or sustain by or by reason for any act done, concurred in or omitted in or about the execution of FLG’s or FLG Member’s duty
or services performed on behalf of Client; and Client shall indemnify FLG and FLG member for attorney’s fees, costs and expenses in connection with litigation related to the foregoing on the same basis as such advancement would be available to
the Client’s officers and directors, PROVIDED THAT Client shall not be obligated to make payments to any person (i) in connection with a proceeding (or part thereof) initiated by such person unless such proceeding (or part thereof) was
authorized or consented to by the Board or (ii) in respect of any gross negligence or willful misconduct which may attach to any such persons. 

  

	 	B.	FLG and FLG Member shall have no liability to Client relating to the performance of its duties under this agreement except in the event of FLG’s or FLG Member’s gross
negligence or willful misconduct. 

  

	 	C.	FLG and FLG Member agree to waive any claim or right of action FLG or FLG Member might have whether individually or by or in the right of Client, against any director, secretary and
other officers of Client and the liquidator or trustees (if any) acting in relation to any of the affairs of Client and every one of them on account of any action taken by such director, officer, liquidator or trustee or the failure of such
director, officer, liquidator or trustee to take any action in the performance of his duties with or for Client; PROVIDED THAT such waiver shall not extend to any matter in respect of any gross negligence or willful misconduct which may attach to
any such persons. 

  

	7.	Representations and Warranties. 

  

	 	A.	Each party represents and warrants to the other that it is authorized to enter into this Agreement and can fulfill all of its obligations hereunder. 

  

	 	B.	FLG and FLG Member warrant that they shall perform the Services diligently, with due care, and in accordance with prevailing industry standards for comparable engagement and the
requirements of this Agreement. FLG and FLG Member warrant that FLG Member has sufficient professional experience to perform the Services in a timely and competent manner. 

  

	 	C.	Client represents and warrants that it has and will maintain a policy or policies of insurance with reputable insurance companies providing the officers and directors of the Company
with coverage for losses from wrongful acts. 

  

	8.	Miscellaneous. 

  

	 	A.	Any notice required or permitted to be given by either party hereto under this Agreement shall be in writing and shall be personally delivered or sent by a reputable courier mail
service (e.g., Federal Express) or by facsimile confirmed by reputable courier mail service, to the other party as set forth in this Section 9(A). Notices will be deemed effective two (2) days after deposit with a reputable courier service
or upon confirmation of receipt by the recipient from such courier service or the same day if sent by facsimile and confirmed as set forth above. 

     Notice to FLG shall be directed to: 
 Jeffrey S. Kuhn 
 Managing Principal 
 Financial Leadership Group, LLC 
 PO Box 556 
 Ross, CA 94957-0556 
 Tel: 415-454-5506 
 Fax: 415-456-1191 
 E-mail: jeff@flgllc.com 
 Notice to Client shall be directed to: the person, address, telephone numbers and email address shown below Client’s signature on the signature page. 
  

	 	B.	This Agreement will be governed by and construed in accordance with the laws of California without giving effect to any choice of law principles that would require the application
of the laws of a different jurisdiction. 

  

	 	C.	Any claim, dispute, or controversy of whatever nature arising out of or relating to this Agreement (including any other agreement(s) contemplated hereunder), including, without
limitation, any action or claim based on tort, contract, or statute (including any claims of breach or violation of statutory or common law protections from 

  

					
	Initial: Client          FLG         	  	Page 2 of 5	  	

 CONSULTING AGREEMENT 
 discrimination, harassment and hostile working environment), or concerning the interpretation, effect, termination, validity, performance and/or breach of this Agreement (“Claim”), shall be resolved by final
and binding arbitration before a single arbitrator (“Arbitrator”) selected from and administered by the San Francisco office of JAMS (the “Administrator”) in accordance with its then existing commercial arbitration rules and
procedures. The arbitration shall be held in San Mateo County, California. The Arbitrator shall, within fifteen (15) calendar days after the conclusion of the Arbitration hearing, issue a written award and statement of decision describing the
essential findings and conclusions on which the award is based, including the calculation of any damages awarded. The Arbitrator also shall be authorized to grant any temporary, preliminary or permanent equitable remedy or relief he or she deems
just and equitable and within the scope of this Agreement, including, without limitation, an injunction or order for specific performance. Each party shall bear its own attorney’s fees, costs, and disbursements arising out of the arbitration,
and of the fees and costs of the Administrator and the Arbitrator; provided, however, the Arbitrator shall be authorized to determine whether a party is the prevailing party, and if so, to award to that prevailing party reimbursement for its
reasonable attorneys’ fees, costs and disbursements, and/or the fees and costs of the Administrator and the Arbitrator. The Arbitrator’s award may be enforced in any court of competent jurisdiction. Notwithstanding the foregoing, nothing
in this Section 9(c) will restrict either party from applying to any court of competent jurisdiction for injunctive relief. 
  

	 	D.	Neither party may assign its rights or delegate its obligations hereunder, either in whole or in part, whether by operation of law or otherwise, without the prior written consent of
the other party; provided, however, that FLG may assign its rights and delegate its obligations hereunder to any affiliate of FLG. The rights and liabilities of the parties under this Agreement will bind and inure to the benefit of the parties’
respective successors and permitted assigns. 

  

	 	E.	If any provision of this Agreement, or the application thereof, shall for any reason and to any extent be invalid or unenforceable, the remainder of this Agreement and application
of such provision to other persons or circumstances shall be interpreted so as best to reasonably effect the intent of the parties. The parties further agree to replace such void or unenforceable provision of this Agreement with a valid and
enforceable provision which will achieve, to the extent possible, the economic, business and other purposes of the void or unenforceable provision. 

  

	 	F.	This Agreement, the Exhibits, and any executed Non-Disclosure Agreements specified therein and thus incorporated by reference, constitute the entire understanding and agreement of
the parties with respect to the subject matter hereof and thereof and supersede all prior and contemporaneous agreements or understandings, express or implied, written or oral, between the parties with respect hereto and thereto. The express terms
hereof control and supersede any course of performance or usage of the trade inconsistent with any of the terms hereof. 

  

	 	G.	Any term or provision of this Agreement may be amended, and the observance of any term of this Agreement may be waived, only by a writing signed by the parties. The waiver by a
party of any breach hereof for default in payment of any amount due hereunder or default in the performance hereof shall not be deemed to constitute a waiver of any other default or succeeding breach or default. 

  

	 	H.	If and to the extent that a party’s performance of any of its obligations pursuant to this Agreement is prevented, hindered or delayed by fire, flood, earthquake, elements of
nature or acts of God, acts of war, terrorism, riots, civil disorders, rebellions or revolutions, or any other similar cause beyond the reasonable control of such party (each, a “Force Majeure Event”), and such non-performance, hindrance
or delay could not have been prevented by reasonable precautions of the non-performing party, then the non-performing, hindered or delayed party shall be excused for such non-performance, hindrance or delay, as applicable, of those obligations
affected by the Force Majeure Event for as long as such Force Majeure Event continues and such party continues to use its best efforts to recommence performance whenever and to whatever extent possible without delay, including through the use of
alternate sources, workaround plans or other means. 

  

	 	I.	This Agreement may be executed in any number of counterparts and by the parties on separate counterparts, each of which when executed and delivered shall constitute an original, but
all the counterparts together constitute one and the same instrument. 

  

	 	J.	This Agreement may be executed by facsimile signatures (including electronic versions of this document in Adobe Acrobat form which contain scanned signatures) by any party hereto
and such signatures shall be deemed binding for all purposes hereof, without delivery of an original signature being thereafter required. 

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	Initial: Client          FLG         	  	Page 3 of 5	  	

 CONSULTING AGREEMENT 
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date. 
  

							
	CLIENT:	    	FLG:
		
	 Peak International, Ltd.
 a Bermuda limited
liability company
	    	 Financial Leadership Group, LLC,
 a
California limited liability company

				
	By:	 	 Dean Personne
	    	By:	 	 Jeffrey S. Kuhn

				
	Signed:	 	 /s/ Dean Personne
	    	Signed:	 	 /s/ Jeffrey S. Kuhn

				
	Title:	 	President and Chief Executive Officer	    	Title:	 	Managing Principal
				
	Address:	 	38507 Cherry Street, Unit G	    		 	
			
		 	Newark, CA 94560	    	Effective Date: May 1, 2006
				
	Tel:	 	  
	    		 	
				
	Fax:	 	  
	    		 	
				
	Email:	 	  
	    		 	

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	Initial: Client          FLG         	  	Page 4 of 5	  	

 CONSULTING AGREEMENT 
 EXHIBIT A 
  

	1.	Description of Services: Services typical of a Chief Financial Officer of a NASDAQ-listed company, to be performed at Client’s headquarters in Hong Kong, in Shenzhen,
PRC, and other Client facilities or other locations as may be reasonably required. 

  

	2.	FLG Member: John T. Supan. 

  

	3.	Fees: US$20,833 per month. 

  

	4.	Additional Bonus Compensation: Discretionary at the sole determination of the Client. 

  

	5.	Additional Costs to be borne by Client: Residency in Hong Kong, transportation and out-of-pocket expenses as follows: 

  

	 	a.	Round trip business class travel as necessary. Air transportation of less than five hour’s duration is to be economy class. 

  

	 	b.	Out-of-town hotel accommodations and ground transportation commensurate with Client’s travel policy for executive officers. 

  

	 	c.	One bedroom, furnished, full service apartment at Gateway Apartments in Hong Kong including a one time amount of US$1,000 to compensate for meals, transport and similar expenses.

  

	 	d.	If an apartment at Gateway Apartments in Hong Kong is not available, hotel accommodations and reasonable meal, transport and similar expenses at the rate of US$350 per calendar day
until an apartment at Gateway Apartments becomes available. 

  

	6.	Term: Three months, renewable in one month increments by Client upon 30 days’ notice to and acceptance by FLG Member. 

  

	7.	Non-Disclosure Agreement: 

  

	 	a.	Confidentiality Agreement dated April 24, 2006. 

  

					
	Initial: Client          FLG         	  	Page 5 of 5

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