Document:

2007 Equity Incentive Plan

 EXHIBIT 4.1 
 LOOKSMART, LTD. 
 2007 EQUITY INCENTIVE PLAN 
  

	1.	Purposes of the Plan.

 The purpose of this Plan is
to encourage ownership in LookSmart, Ltd., a Delaware corporation (the “Company”), by key personnel whose long-term employment or other service relationship with the Company is considered essential to the Company’s continued
progress and, thereby, encourage recipients to act in the stockholders’ interest and share in the Company’s success. 
  

	2.	Definitions.

 As used herein, the following
definitions shall apply: 
 (a) “Administrator” means the Board, any Committees or such
delegates as shall be administering the Plan in accordance with Section 4 of the Plan. 
 (b) “Affiliate” means any entity that is directly or indirectly controlled by the Company or any entity in which the Company has a significant ownership interest as determined by the Administrator.

 (c) “Applicable Laws” means the requirements relating to the administration of stock
option and stock award plans under U.S. federal and state laws, the Code, any stock exchange or quotation system on which the Company has listed or submitted for quotation the Common Stock to the extent provided under the terms of the Company’s
agreement with such exchange or quotation system and, with respect to Awards subject to the laws of any foreign jurisdiction where Awards are, or will be, granted under the Plan, the laws of such jurisdiction. 
 (d) “Award” means a Cash Award, Stock Award or Option granted in accordance with the terms of the Plan.

 (e) “Awardee” means an Employee, Consultant or Director of the Company or any Affiliate
who has been granted an Award under the Plan. 
 (f) “Award Agreement” means a Cash Award
Agreement, Stock Award Agreement and/or Option Agreement, which may be in written or electronic format, in such form and with such terms and conditions as may be specified by the Administrator, evidencing the terms and conditions of an individual
Award. Each Award Agreement is subject to the terms and conditions of the Plan. 
 (g) “Board” means the Board of Directors of the Company. 

 (h) “Cash Award” means a bonus opportunity awarded under Section 12
pursuant to which an Awardee may become entitled to receive an amount based on the satisfaction of such performance criteria as are specified in the agreement or other documents evidencing the Award (the “Cash Award Agreement”).

 (i) “Code” means the United States Internal Revenue Code of 1986, as amended. 

(j) “Committee” means the compensation committee of the Board or a committee of Directors appointed
by the Board in accordance with Section 4 of the Plan. 
 (k) “Common Stock” means the
common stock of the Company. 
 (l) “Company” means LookSmart, Ltd., a Delaware corporation,
or its successor. 
 (m) “Consultant” means any person engaged by the Company or any Affiliate to render
services to such entity as an advisor or consultant.
 (n) “Conversion Award” has the meaning set forth
in Section 4(b)(xii) of the Plan. 
 (o) “Director” means a member of the Board.

 (p) “Employee” means a regular, active employee of the Company or any Affiliate, including an
Officer and/or Inside Director. Within the limitations of Applicable Law, the Administrator shall have the discretion to determine the effect upon an Award and upon an individual’s status as an Employee in the case of (i) any individual
who is classified by the Company or its Affiliate as leased from or otherwise employed by a third party or as intermittent or temporary, even if any such classification is changed retroactively as a result of an audit, litigation or otherwise,
(ii) any leave of absence approved by the Company or an Affiliate, (iii) any transfer between locations of employment with the Company or an Affiliate or between the Company and any Affiliate or between any Affiliates, (iv) any change
in the Awardee’s status from an Employee to a Consultant or Director, and (v) at the request of the Company or an Affiliate an Employee becomes employed by any partnership, joint venture or corporation not meeting the requirements of an
Affiliate in which the Company or an Affiliate is a party. For purposes of Incentive Stock Options, no leave may exceed ninety days, unless reemployment upon expiration of such leave is guaranteed by statute or contract. If reemployment upon
expiration of a leave of absence approved by the Company is not so guaranteed, on the 181st day of such leave any Incentive Stock Option held by the Awardee shall cease to be treated as an Incentive Stock Option and shall be treated for tax purposes
as a Nonstatutory Stock Option. 
 (q) “Exchange Act” means the Securities Exchange Act of
1934, as amended. 
 (r) “Fair Market Value” of a Share on any given date means 
  

 2 

 i. If the Common Stock is listed on any established stock exchange or a national market
system, including without limitation the Nasdaq Global Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system on the market trading day on
the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 
 ii. If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value of a Share of Common Stock shall be the mean between the high bid and low asked prices for the Common
Stock on the market trading day on the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or 
 iii. In the absence of an established market for the Common Stock, the Fair Market Value shall be determined in good faith through
reasonable application of a reasonable valuation method by the Administrator. 
 (s) “Grant
Date” means, for all purposes, the date on which the Administrator makes the determination granting an Award, or such other date as is determined by the Administrator, provided that in the case of any Incentive Stock Option, the grant
date shall be the later of the date on which the Administrator makes the determination granting such Incentive Stock Option or the date of commencement of the Awardee’s employment relationship with the Company. 
 (t) “Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the
meaning of Section 422 of the Code and the regulations promulgated thereunder. 
 (u) “Inside
Director” means a Director who is an Employee. 
 (v) “Nasdaq” means the Nasdaq Global Market or its
successor.
 (w) “Nonstatutory Stock Option” means an Option not intended to qualify as an
Incentive Stock Option. 
 (x) “Officer” means a person who is an officer of the Company
within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 
 (y) “Option” means a right granted under Section 8 to purchase a number of Shares at such exercise price, at such times, and on such other terms and conditions as are specified in the agreement or
other documents evidencing the Option (the “Option Agreement”). Both Options intended to qualify as Incentive Stock Options and Nonstatutory Stock Options may be granted under the Plan. 
 (z) “Outside Director” means a Director who is not an Employee. 
  

 3 

 (aa) “Participant” means the Awardee or any person (including any
estate) to whom an Award has been assigned or transferred as permitted hereunder. 
 (bb) “Plan” means this LookSmart, Ltd. 2007 Equity Incentive Plan. 
 (cc) “Qualifying Performance Criteria” shall have the meaning set forth in Section 13(b) of the Plan. 
 (dd) “Share” means a share of the Common Stock, as adjusted in accordance with Section 14 of the Plan. 
 (ee) “Stock Appreciation Right” means a right to receive cash and/or shares of Common Stock based on a change in the
Fair Market Value of a specific number of shares of Common Stock between the Grant Date and the exercise date granted under Section 11.
 (ff) “Stock Award” means an award or issuance of Shares, Stock Units, Stock Appreciation Rights or other similar awards made under Section 11 of the Plan, the grant, issuance, retention,
vesting, settlement and/or transferability of which is subject during specified periods of time to such conditions (including continued employment or performance conditions) and terms as are expressed in the agreement or other documents evidencing
the Award (the “Stock Award Agreement”). 
 (gg) “Stock Unit” means a bookkeeping
entry representing an amount equivalent to the Fair Market Value of one Share (or a fraction or multiple of such value), payable in cash, property or Shares. Stock Units represent an unfunded and unsecured obligation of the Company, except as
otherwise provided for by the Administrator. 
 (hh) “Subsidiary” means any company (other than the
Company) in an unbroken chain of companies beginning with the Company, provided each company in the unbroken chain (other than the Company) owns, at the time of determination, stock possessing 50% or more of the total combined voting power of all
classes of stock in one of the other companies in such chain. 
 (ii) “Termination of
Employment” shall mean ceasing to be an Employee, Consultant or Director, as determined in the sole discretion of the Administrator. However, for Incentive Stock Option purposes, Termination of Employment will occur when the Awardee
ceases to be an employee (as determined in accordance with Section 3401(c) of the Code and the regulations promulgated thereunder) of the Company or one of its Subsidiaries. The Administrator shall determine whether any corporate transaction,
such as a sale or spin-off of a division or business unit, or a joint venture, shall be deemed to result in a Termination of Employment. 
 (jj) “Total and Permanent Disability” shall have the meaning set forth in Section 22(e)(3) of the Code. 
  

 4 

	3.	Stock Subject to the Plan.

 (a) Aggregate Limits. Subject to the provisions of Section 14 of the Plan, the maximum aggregate number of Shares that may be optioned and sold under the Plan is 3,700,000 Shares. The Shares may be authorized, but unissued,
or reacquired Common Stock. 
 If an Award expires or is cancelled or forfeited or becomes unexercisable without having been
exercised in full, the unissued Shares which were subject thereto shall become available for future grant or sale under the Plan (unless the Plan has terminated); provided, however, that Shares that have actually been issued under the Plan,
whether upon exercise of an Option or under a Stock Award, shall not be returned to the Plan and shall not become available for future distribution under the Plan, except that if Shares of Common Stock are repurchased by or forfeited to the Company
upon the Awardee’s failure to vest in or otherwise earn the Shares, such Shares shall become available for future grant under the Plan. If an Awardee pays the exercise or purchase price of an Award granted under the Plan through the tender of
Shares, or if Shares are tendered or withheld to satisfy any Company withholding obligations, the number of Shares so tendered or withheld shall not become available for re-issuance thereafter under the Plan. 
 Subject to the provisions of Section 14 of the Plan, the maximum aggregate number of Shares that may be granted under the Plan
subject to Stock Awards having an exercise or purchase price that is less than the Fair Market Value of the Common Stock measured as of the Grant Date of the Stock Award is 925,000 Shares. Stock-settled Stock Appreciation Rights will not be counted
against this limit; provided however that the total number of Shares to which a Stock Appreciation Right applies (rather than the net number issued upon settlement) shall be deducted against the number of Shares set forth in the first paragraph of
Section 3(a) above upon settlement of such Award. 
 (b) Code Section 162(m) Share Limits. Subject
to the provisions of Section 14 of the Plan, the aggregate number of Shares subject to non-cash Awards granted under this Plan during any calendar year to any one Awardee shall not exceed 1,500,000; provided that in connection with his or her
initial service to the Company, an Awardee may be granted Awards to purchase up to an additional 1,500,000 Shares during the year in which such service commences. Notwithstanding anything to the contrary in the Plan, the limitation set forth in this
Section 3(b) shall be subject to adjustment under Section 14(a) of the Plan only to the extent that such adjustment will not affect the status of any Award intended to qualify as “performance based compensation” under Code
Section 162(m). 
  

	4.	Administration of the Plan.

 (a) Procedure.
 i. Multiple Administrative Bodies. The Plan shall be administered by
the Board, a Committee and/or their delegates. 
  

 5 

 ii. Section 162. To the extent that the Administrator determines it
to be desirable to qualify Awards granted hereunder as “performance-based compensation” within the meaning of Section 162(m) of the Code, Awards to “covered employees” within the meaning of Section 162(m) of the Code or
Employees that the Committee determines may be “covered employees” in the future shall be made by a Committee of two or more “outside directors” within the meaning of Section 162(m) of the Code. 
 iii. Rule 16b-3. To the extent desirable to qualify transactions hereunder as exempt under Rule 16b-3
promulgated under the Exchange Act (“Rule 16b-3”), Awards to Officers and Directors shall be made by the entire Board or a Committee of two or more “non-employee directors” within the meaning of Rule 16b-3. 

iv. Other Administration. The Board or a Committee may delegate to an authorized officer or officers of the Company
the power to approve Awards to persons eligible to receive Awards under the Plan who are not (A) subject to Section 16 of the Exchange Act or (B) at the time of such approval, “covered employees” under Section 162(m) of
the Code or (C) any other executive officer. 
 v. Delegation of Authority for the Day-to-Day Administration of
the Plan. Except to the extent prohibited by Applicable Law, the Administrator may delegate to one or more individuals the day-to-day administration of the Plan and any of the functions assigned to it in this Plan. Such delegation may be
revoked at any time. 
 vi. Nasdaq. The Plan will be administered in a manner that complies with any applicable Nasdaq
or stock exchange listing requirements. 
 (b) Powers of the Administrator. Subject to the provisions of the
Plan and, in the case of a Committee or delegates acting as the Administrator, subject to the specific duties delegated to such Committee or delegates, the Administrator shall have the authority, in its discretion: 
 i. to select the Employees, Consultants and Directors of the Company or its Affiliates to whom Awards are to be granted hereunder;

 ii. to determine the number of shares of Common Stock or amount of cash to be covered by each Award granted hereunder;

 iii. to determine the type of Award to be granted to the selected Employees, Consultants and Directors; 
 iii. to approve forms of Award Agreements for use under the Plan; 
  

 6 

 iv. to determine the terms and conditions, not inconsistent with the terms of the
Plan, of any Award granted hereunder. Such terms and conditions include, but are not limited to, the exercise and/or purchase price (if applicable), the time or times when an Award may be exercised (which may or may not be based on performance
criteria), the vesting schedule, any vesting and/or exercisability acceleration or waiver of forfeiture restrictions, the acceptable forms of consideration, the term, and any restriction or limitation regarding any Award or the Shares relating
thereto, based in each case on such factors as the Administrator, in its sole discretion, shall determine and may be established at the time an Award is granted or thereafter; 
 v. to determine whether and under what circumstances an Option may be settled in cash under Section 8(h) instead of Common Stock;

 vi. to correct administrative errors; 
 vii. to construe and interpret the terms of the Plan (including sub-plans and Plan addenda) and Awards granted pursuant to the Plan;

 viii. to adopt rules and procedures relating to the operation and administration of the Plan to accommodate the
specific requirements of local laws and procedures. Without limiting the generality of the foregoing, the Administrator is specifically authorized (A) to adopt the rules and procedures regarding the conversion of local currency, withholding
procedures and handling of stock certificates which vary with local requirements and (B) to adopt sub-plans and Plan addenda as the Administrator deems desirable, to accommodate foreign laws, regulations and practice; 
 ix. to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans
and Plan addenda; 
 x. to modify or amend each Award, including, but not limited to, the acceleration of vesting and/or
exercisability, provided, however, that any such amendment is subject to Section 15 of the Plan and except as set forth in that Section, may not impair any outstanding Award unless agreed to in writing by the Participant; 
 xi. to allow Participants to satisfy withholding tax amounts by electing to have the Company withhold from the Shares to be issued
upon exercise of an Option or vesting of a Stock Award that number of Shares having a Fair Market Value equal to the amount required to be withheld. The Fair Market Value of the Shares to be withheld shall be determined in such manner and on such
date that the Administrator shall determine or, in the absence of provision otherwise, on the date that the amount of tax to be withheld is to be determined. All elections by a Participant to have Shares withheld for this purpose shall be made in
such form and under such conditions as the Administrator may provide; 
  

 7 

 xii. to authorize conversion or substitution under the Plan of any or all stock
options, stock appreciation rights or other stock awards held by service providers of an entity acquired by the Company (the “Conversion Awards”). Any conversion or substitution shall be effective as of the close of the merger,
acquisition or other transaction. The Conversion Awards may be Nonstatutory Stock Options or Incentive Stock Options, as determined by the Administrator, with respect to options granted by the acquired entity; provided, however, that with respect to
the conversion of stock appreciation rights in the acquired entity, the Conversion Awards shall be Nonstatutory Stock Options. Unless otherwise determined by the Administrator at the time of conversion or substitution, all Conversion Awards shall
have the same terms and conditions as Awards generally granted by the Company under the Plan; 
 xiii. to authorize any
person to execute on behalf of the Company any instrument required to effect the grant of an Award previously granted by the Administrator; 
 xiv. to impose such restrictions, conditions or limitations as it determines appropriate as to the timing and manner of any resales by a Participant or other subsequent transfers by the Participant of any Shares
issued as a result of or under an Award, including without limitation, (A) restrictions under an insider trading policy or under any other Company policy relating to Company stock and stock ownership and (B) restrictions as to the use of a
specified brokerage firm for such resales or other transfers; 
 xv. to provide, either at the time an Award is granted
or by subsequent action, that an Award shall contain as a term thereof, a right, either in tandem with the other rights under the Award or as an alternative thereto, of the Participant to receive, without payment to the Company, a number of Shares,
cash or a combination thereof, the amount of which is determined by reference to the value of the Award; and 
 xvi. to
make all other determinations deemed necessary or advisable for administering the Plan and any Award granted hereunder. 
 (c) Effect of Administrator’s Decision. All decisions, determinations and interpretations by the Administrator regarding the Plan, any rules and regulations under the Plan and the terms and conditions of any Award
granted hereunder, shall be final and binding on all Participants and on all other persons. The Administrator shall consider such factors as it deems relevant, in its sole and absolute discretion, to making such decisions, determinations and
interpretations including, without limitation, the recommendations or advice of any officer or other employee of the Company and such attorneys, consultants and accountants as it may select. 
  

 8 

	5.	Eligibility.

 Awards may be granted to Employees,
Consultants and Directors of the Company or any of its Affiliates; provided that Incentive Stock Options may be granted only to Employees of the Company or of a Subsidiary of the Company. 
  

	6.	Term of Plan.

 The Plan shall become effective upon
its approval by the stockholders of the Company. It shall continue in effect for a term of ten (10) years from the later of the date the stockholders of the Company approve the Plan or the date any amendment to add shares to the Plan is
approved by stockholders of the Company, unless terminated earlier under Section 15 of the Plan. 
  

	7.	Term of Award.

 The term of each Award shall be
determined by the Administrator and stated in the Award Agreement. In the case of an Option, the term shall be ten (10) years from the Grant Date or such shorter term as may be provided in the Award Agreement; provided that an Incentive Stock
Option granted to an Employee who on the Grant Date owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Subsidiary shall have a term of no more than five (5) years from the
Grant Date. In the case of a Stock Appreciation Right, the term shall be ten (10) years from the Grant Date or such shorter term as may be provided in the Award Agreement. 
  

	8.	Options.

 The Administrator may grant an Option or
provide for the grant of an Option, either from time to time in the discretion of the Administrator or automatically upon the occurrence of specified events, including, without limitation, the achievement of performance goals, the satisfaction of an
event or condition within the control of the Awardee or within the control of others. 
 (a) Option
Agreement. Each Option Agreement shall contain provisions regarding (i) the number of Shares that may be issued upon exercise of the Option, (ii) the type of Option, (iii) the exercise price of the Shares and the means of
payment for the Shares, (iv) the term of the Option, (v) such terms and conditions on the vesting and/or exercisability of an Option as may be determined from time to time by the Administrator, (vi) restrictions on the transfer of the
Option or the Shares issued upon exercise of the Option and forfeiture provisions on either and (vii) such further terms and conditions, in each case not inconsistent with this Plan as may be determined from time to time by the Administrator.

  

 9 

 (b) Exercise Price. The per share exercise price for the Shares to be
issued pursuant to exercise of an Option shall be determined by the Administrator, subject to the following: 
 i. In the
case of an Incentive Stock Option, the per Share exercise price shall be no less than one hundred percent (100%) of the Fair Market Value per Share on the Grant Date; provided however, that in the case of an Incentive Stock Option granted to an
Employee who on the Grant Date owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Subsidiary, the per Share exercise price shall be no less than one hundred ten percent
(110%) of the Fair Market Value per Share on the Grant Date. 
 ii. In the case of a Nonstatutory Stock Option, the
per Share exercise price shall be no less than one hundred percent (100%) of the Fair Market Value per Share on the Grant Date. 
 iii. Notwithstanding the foregoing, at the Administrator’s discretion, Conversion Awards may be granted in substitution and/or conversion of options of an acquired entity, with a per Share exercise price of less than 100% of the
Fair Market Value per Share on the date of such substitution and/or conversion. 
 (c) No Option (or Stock Appreciation
Right) Repricings. Other than in connection with a change in the Company’s capitalization (as described in Section 14(a) of the Plan), a Repricing (as defined below) is prohibited without stockholder approval. 
 “Repricing” means any of the following or any other action that has the same purpose and effect: (a) lowering the
exercise price of an outstanding Option or, for the avoidance of doubt, Stock Appreciation Right granted under this Plan after it is granted; (b) any other action affecting an outstanding Option or, for the avoidance of doubt, Stock
Appreciation Right granted under this Plan that is treated as a repricing under United States generally accepted accounting principles; (c) canceling an outstanding Option or, for the avoidance of doubt, Stock Appreciation Right granted under
this Plan at a time when its exercise or purchase price exceeds the then fair market value of the stock underlying such outstanding Option or, for the avoidance of doubt, Stock Appreciation Right, in exchange for another Option or, for the avoidance
of doubt, Stock Appreciation Right or a cash payment or other form of Award, unless the cancellation and exchange occurs in connection with a merger, consolidation, sale of substantially all the Company’s assets, acquisition, spin-off,
spin-out, or other similar corporate transaction. 
 (d) Vesting Period and Exercise Dates. Options granted
under this Plan shall vest and/or be exercisable at such time and in such installments during the period prior to the expiration of the Option’s term as determined by the Administrator. The Administrator shall have the right to make the timing
of the ability to exercise any Option granted under this Plan subject to continued employment, the passage of time and/or such performance requirements as deemed appropriate by the Administrator. At any time after the grant of an Option, the
Administrator may reduce or eliminate any restrictions surrounding any Participant’s right to exercise all or part of the Option. 
  

 10 

 (e) Form of Consideration. The Participant may pay the exercise price of
an Option using any of the following forms of consideration, unless the Administrator determines not to permit such form of consideration at any time including at the time of exercise: 
 i. cash; 
 ii. check or wire transfer (denominated in U.S. Dollars); 
 iii. subject to the Company’s discretion to
refuse for any reason and at any time to accept such consideration and subject to any conditions or limitations established by the Administrator, other Shares held by the Participant which have a Fair Market Value on the date of surrender equal
to the aggregate exercise price of the Shares as to which said Option shall be exercised; 
 iv. consideration received
by the Company under a broker-assisted sale and remittance program acceptable to the Administrator; 
 v. reduction in the
amount of any Company liability to the Participant, including any liability attributable to the Participant’s participation in any Company-sponsored deferred compensation program or arrangement; 
 vi. such other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws; or

 vii. any combination of the foregoing methods of payment. 
 (f) Effect of Termination on Options 
 i. Generally. Upon an Awardee’s Termination of Employment, other than upon the Awardee’s death or disability, the Awardee may exercise his or her Option within such period of time as is specified
in the Option Agreement to the extent that the Option is vested and exercisable on the date of Termination of Employment (but in no event later than the expiration of the term of such Option as set forth in the Option Agreement). In the absence of a
specified time in the Option Agreement, the Option (to the extent vested and exercisable) shall remain exercisable for three (3) months following the Awardee’s Termination of Employment. If, on the date of Termination of Employment, the
Awardee is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall revert to the Plan. If, after Termination of Employment, the Awardee does not exercise his or her Option within the time specified
by the Administrator, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
  

 11 

 ii. Disability of Awardee. Unless otherwise provided for by the
Administrator, upon an Awardee’s Termination of Employment as a result of the Awardee’s disability, including Total and Permanent Disability, all outstanding Options granted to such Awardee that were vested and exercisable as of the date
of the Awardee’s Termination of Employment may be exercised by the Awardee until (A) twelve (12) months following Awardee’s Termination of Employment as a result of Awardee’s disability, including Total and Permanent
Disability or (B) the expiration of the term of such Option. If the Participant does not exercise such Option within the time specified, the Option (to the extent not exercised) shall automatically terminate. 
 iii. Death of Awardee. Unless otherwise provided for by the Administrator, upon an Awardee’s Termination of
Employment as a result of the Awardee’s death all outstanding Options granted to such Awardee that were vested and exercisable as of the date of the Awardee’s death, may be exercised until the earlier of (A) twelve (12) months
following the Awardee’s death or (B) the expiration of the term of such Option. Such Option may be exercised, to the extent the Option is vested and exercisable, by the beneficiary designated by the Awardee (as provided in Section 16
of the Plan), the executor or administrator of the Awardee’s estate or, if none, by the person(s) entitled to exercise the Option under the Awardee’s will or the laws of descent or distribution; provided that the Company need not accept
exercise of an Option by such beneficiary, executor or administrator unless the Company has satisfactory evidence of such person’s authority to act as such. If the Option is not so exercised within the time specified, such Option (to the extent
not exercised) shall automatically terminate. 
 iv. Other Terminations of Employment. The Administrator may provide in
the applicable Option Agreement for different treatment of Options upon Termination of Employment of the Awardee than that specified above. 
 v. Extension of Exercise Period. The Administrator shall have full power and authority to extend the period of time for which an Option is to remain exercisable following an Awardee’s Termination of
Employment from the periods set forth in Sections 8(f)(i),(ii) and (iii) above or in the Option Agreement to such greater time as the Board shall deem appropriate, provided that in no event shall such Option be exercisable later than the date
of expiration of the term of such Option as set forth in the Option Agreement. 
 (g) Leave of Absence. The
Administrator shall have the discretion to determine whether and to what extent the vesting of Options shall be tolled during any unpaid leave of absence; provided, however, that in the absence of such determination, vesting of Options shall be
tolled during any leave that is not a leave required to be provided to the Awardee under Applicable Law. In the event of military leave, vesting shall toll during any unpaid portion of such leave, provided that, upon an Awardee’s returning from
military leave (under conditions that would entitle him or her to protection upon such return under the Uniform Services Employment and Reemployment Rights Act), he or she shall be given vesting credit with respect to Options to the same extent as
would have applied had the Awardee continued to provide services to the Company throughout the leave on the same terms as he or she was providing services immediately prior to such leave. 
  

 12 

 (h) Buyout Provisions. Subject to the prohibition on Repricings set forth in
Section 8(c) hereof, the Administrator may at any time offer to buy out for a payment in cash or Shares, an Option or Stock Appreciation Right previously granted, based on such terms and conditions as the Administrator shall establish and
communicate to the Awardee at the time that such offer is made. 
  

	9.	Incentive Stock Option Limitations/Terms.

 (a) Eligibility. Only employees (as determined in accordance with Section 3401(c) of the Code and the regulations promulgated thereunder) of the Company or any of its Subsidiaries may be granted Incentive Stock
Options. 
 (b) $100,000 Limitation. Notwithstanding the designation “Incentive Stock Option” in an
Option Agreement, if and to the extent that the aggregate Fair Market Value of the Shares with respect to which Incentive Stock Options are exercisable for the first time by the Awardee during any calendar year (under all plans of the Company and
any of its Subsidiaries) exceeds U.S. $100,000, such Options shall be treated as Nonstatutory Stock Options. For purposes of this Section 9(b), Incentive Stock Options shall be taken into account in the order in which they were granted. The
Fair Market Value of the Shares shall be determined as of the Grant Date. 
 (c) Transferability. An
Incentive Stock Option may not be sold, pledged, assigned, hypothecated, transferred or disposed of in any manner by the Awardee otherwise than by will or the laws of descent and distribution, and, during the lifetime of such Awardee, may only be
exercised by the Awardee. If the terms of an Incentive Stock Option are amended to permit transferability, the Option will be treated for tax purposes as a Nonstatutory Stock Option. The designation of a beneficiary by an Awardee will not constitute
a transfer. 
 (d) Exercise Price. The per Share exercise price of an Incentive Stock Option shall be
determined by the Administrator in accordance with Section 8(b)(i) of the Plan. 
 (e) Other
Terms. Option Agreements evidencing Incentive Stock Options shall contain such other terms and conditions as may be necessary to qualify, to the extent determined desirable by the Administrator, with the applicable provisions of
Section 422 of the Code. 
  

 13 

	10.	Exercise of Option.

 (a)
Procedure for Exercise.  
 i. Any Option granted hereunder shall be exercisable according to the terms of the
Plan and at such times and under such conditions as determined by the Administrator and set forth in the respective Option Agreement. 
 ii. An Option shall be deemed exercised when the Company receives (A) written or electronic notice of exercise (in accordance with the Option Agreement) from the person entitled to exercise the Option;
(B) full payment for the Shares with respect to which the related Option is exercised; and (C) payment of all applicable withholding taxes. 
 iii. An Option may not be exercised for a fraction of a Share. 
 (b) Rights as a
Stockholder. The Company shall issue (or cause to be issued) such Shares as administratively practicable after the Option is exercised. Shares issued upon exercise of an Option shall be issued in the name of the Participant or, if requested by
the Participant, in the name of the Participant and his or her spouse. Unless provided otherwise by the Administrator or pursuant to this Plan, until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a
duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Shares subject to an Option, notwithstanding the exercise of the Option. 
  

	11.	Stock Awards.

 (a) Stock
Award Agreement. Each Stock Award Agreement shall contain provisions regarding (i) the number of Shares subject to such Stock Award or a formula for determining such number, (ii) the purchase price of the Shares, if any, and the
means of payment for the Shares, (iii) the performance criteria (including Qualifying Performance Criteria), if any, and level of achievement versus these criteria that shall determine the number of Shares granted, issued, retainable and/or
vested, (iv) such terms and conditions on the grant, issuance, vesting, settlement and/or forfeiture of the Shares as may be determined from time to time by the Administrator, (v) restrictions on the transferability of the Stock Award and
(vi) such further terms and conditions in each case not inconsistent with this Plan as may be determined from time to time by the Administrator. 
 (b) Restrictions and Performance Criteria. The grant, issuance, retention, vesting and/or settlement of each Stock Award or the Shares subject thereto may be subject to such performance criteria
(including Qualifying Performance Criteria) and level of achievement versus these criteria as the Administrator shall determine, which criteria may be based on financial performance, personal performance evaluations and/or completion of service by
the Awardee. Unless otherwise permitted in compliance with 

  

 14 

 
the requirements of Code Section 162(m) with respect to an Award intended to comply as “performance-based compensation” thereunder, the
Committee shall establish the Qualifying Performance Criteria applicable to, and the formula for calculating the amount payable under, the Award no later than the earlier of (a) the date ninety (90) days after the commencement of the
applicable performance period, or (b) the date on which 25% of the performance period has elapsed, and in any event at a time when the achievement of the applicable Qualifying Performance Criteria remains substantially uncertain. 
 (c) Forfeiture. Unless otherwise provided for by the Administrator, upon the Awardee’s Termination of Employment,
the Stock Award and the Shares subject thereto shall be forfeited, provided that to the extent that the Participant purchased or earned any Shares, the Company shall have a right to repurchase the unvested Shares at such price and on such terms and
conditions as the Administrator determines. 
 (d) Rights as a Stockholder. Unless otherwise provided by the
Administrator in the Award Agreement, the Participant shall have the rights equivalent to those of a stockholder and shall be a stockholder only after Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company) to the Participant. Unless otherwise provided by the Administrator, a Participant holding Stock Units shall not be entitled to receive dividend payments or any credit therefore as if he or she was an actual
stockholder. 
 (e) Stock Appreciation Rights. 
 i. General. Stock Appreciation Rights may be granted either alone, in addition to, or in tandem with other Awards granted under the
Plan. The Board may grant Stock Appreciation Rights to eligible Participants subject to terms and conditions not inconsistent with this Plan and determined by the Board. The specific terms and conditions applicable to the Participant shall be
provided for in the Stock Award Agreement. Stock Appreciation Rights shall be exercisable, in whole or in part, at such times as the Board shall specify in the Stock Award Agreement. 
 ii. Exercise of Stock Appreciation Right. Upon the exercise of a Stock Appreciation Right, in whole or in part, the
Participant shall be entitled to a payment in an amount equal to the excess of the Fair Market Value on the date of exercise of a fixed number of Shares covered by the exercised portion of the Stock Appreciation Right, over the Fair Market Value on
the Grant Date of the Shares covered by the exercised portion of the Stock Appreciation Right (or such other amount calculated with respect to Shares subject to the Award as the Board may determine). The amount due to the Participant upon the
exercise of a Stock Appreciation Right shall be paid in such form of consideration as determined by the Board and may be in cash, Shares or a combination thereof, over the period or periods specified in the Stock Award Agreement. A Stock Award
Agreement may place limits on the amount that may be paid over any specified period or periods upon the exercise of a Stock Appreciation Right, on an aggregate basis or as to any Participant. A Stock Appreciation Right shall be considered exercised
when the Company receives written notice of exercise in accordance with the terms of the Stock Award Agreement from the person entitled to exercise the Stock Appreciation Right. 
  

 15 

 iii. Nonassignability of Stock Appreciation Rights. Except as determined by the
Administrator, no Stock Appreciation Right shall be assignable or otherwise transferable by the Participant except by will or by the laws of descent and distribution. 
  

	12.	Cash Awards. 

 (a) Cash Award. Each Cash
Award shall contain provisions regarding (i) the target and maximum amount payable to the Awardee as a Cash Award, (ii) the performance criteria and level of achievement versus these criteria which shall determine the amount of such
payment, (iii) the period as to which performance shall be measured for establishing the amount of any payment, (iv) the timing of any payment earned by virtue of performance, (v) restrictions on the alienation or transfer of the Cash
Award prior to actual payment, (vi) forfeiture provisions, and (vii) such further terms and conditions, in each case not inconsistent with the Plan, as may be determined from time to time by the Administrator. The maximum amount payable as
a Cash Award may be a multiple of the target amount payable, but the maximum amount payable pursuant to that portion of a Cash Award granted under this Plan for any fiscal year to any Awardee that is intended to satisfy the requirements for
“performance based compensation” under Section 162(m) of the Code shall not exceed U.S. $1,000,000. 
 (b) Performance
Criteria. The Administrator shall establish the performance criteria and level of achievement versus these criteria which shall determine the target and the minimum and maximum amount payable under a Cash Award, which criteria may be based on
financial performance and/or personal performance evaluations. The Committee may specify the percentage of the target Cash Award that is intended to satisfy the requirements for “performance-based compensation” under Section 162(m) of
the Code. Notwithstanding anything to the contrary herein, the performance criteria for any portion of a Cash Award that is intended to satisfy the requirements for “performance-based compensation” under Section 162(m) of the Code
shall be a measure established by the Committee based on one or more Qualifying Performance Criteria selected by the Committee and specified in writing not later than 90 days after the commencement of the period of service to which the
performance goals relates, provided that the outcome is substantially uncertain at that time. 
 (c) Timing and Form of Payment. The
Administrator shall determine the timing of payment of any Cash Award. The Administrator may provide for or, subject to such terms and conditions as the Administrator may specify, may permit an Awardee to elect for the payment of any Cash Award to
be deferred to a specified date or event. The Administrator may specify the form of payment of Cash Awards, which may be cash or other property, or may provide for an Awardee to have the option for his or her Cash Award, or such portion thereof as
the Administrator may specify, to be paid in whole or in part in cash or other property. 
  

 16 

 (d) Termination of Employment. The Administrator shall have the discretion to determine the effect
a Termination of Employment due to (i) disability, (ii) death or (iii) otherwise shall have on any Cash Award. 
  

	13.	Other Provisions Applicable to Awards.

 (a) Non-Transferability of Awards. An Award may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner for value other than by beneficiary designation, will or by the laws of descent or
distribution. Subject to Section 9(c) and the preceding sentence, the Administrator may in its discretion make an Award transferable to an Awardee’s family member or any other person or entity as it deems appropriate. If the Administrator
makes an Award transferable, either at the time of grant or thereafter, such Award shall contain such additional terms and conditions as the Administrator deems appropriate, and any transferee shall be deemed to be bound by such terms upon
acceptance of such transfer. 
 (b) Qualifying Performance Criteria. For purposes of this Plan, the term
“Qualifying Performance Criteria” shall mean the goal(s) (or combined goal(s)) determined by the Committee (in its discretion) to be applicable to an Awardee with respect to an Award. As determined by the Committee, the Qualifying
Performance Criteria applicable to an Award may provide for a targeted level or levels of achievement using one or more of the following measures: (i) cash flow; (ii) earnings per share; (iii) market share; (iv) profit after tax;
(v) profit before tax; (vi) revenue; and (vii) total stockholder return. The Performance Goals may differ from Awardee to Awardee and from Award to Award. Any criteria used may be measured in absolute terms or as compared to another
company or companies. Any criteria used may be measured against the performance of the Company as a whole or a segment of the Company. In establishing Performance Goals, the Committee may exclude one or more non-recurring items from its measurement
of achievement. 
 (c) Certification. Prior to the payment of any compensation under an Award intended to
qualify as “performance-based compensation” under Section 162(m) of the Code, the Committee shall certify the extent to which any Qualifying Performance Criteria and any other material terms under such Award have been satisfied (other
than in cases where such relate solely to the increase in the value of the Common Stock). 
 (d) Discretionary
Adjustments Pursuant to Section 162(m). Notwithstanding satisfaction of any completion of any Qualifying Performance Criteria, to the extent specified at the time of grant of an Award to “covered employees” within the meaning
of Section 162(m) of the Code, the number of Shares, Options or other benefits granted, issued, retainable and/or vested under an Award on account of satisfaction of such Qualifying Performance Criteria may be reduced by the Committee on the
basis of such further considerations as the Committee in its sole discretion shall determine. 
  

 17 

 (e) Compliance with Section 409A. Notwithstanding anything to the
contrary contained herein, to the extent that the Administrator determines that any Award granted under the Plan is subject to Code Section 409A and unless otherwise specified in the applicable Award Agreement, the Award Agreement evidencing
such Award shall incorporate the terms and conditions necessary for such Award to avoid the consequences described in Code Section 409A(a)(1), and to the maximum extent permitted under Applicable Law (and unless otherwise stated in the
applicable Award Agreement), the Plan and the Award Agreements shall be interpreted in a manner that results in their conforming to the requirements of Code Section 409A(a)(2), (3) and (4) and any Department of Treasury or Internal
Revenue Service regulations or other interpretive guidance issued under Section 409A (whenever issued, the “Guidance”). Notwithstanding anything to the contrary in this Plan (and unless the Award Agreement provides otherwise,
with specific reference to this sentence), to the extent that a Participant holding an Award that constitutes “deferred compensation” under Section 409A and the Guidance is a “specified employee” (also as defined
thereunder), no distribution or payment of any amount shall be made before a date that is six (6) months following the date of such Participant’s “separation from service” (as defined in Section 409A and the Guidance) or, if
earlier, the date of the Participant’s death. 
 (f) Deferral of Award Benefits. The Administrator may in its
discretion and upon such terms and conditions as it determines appropriate permit one or more Participants whom it selects to (a) defer compensation payable pursuant to the terms of an Award, or (b) defer compensation arising outside the
terms of this Plan pursuant to a program that provides for deferred payment in satisfaction of such other compensation amounts through the issuance of one or more Awards. Any such deferral arrangement shall be evidenced by an Award Agreement in such
form as the Administrator shall from time to time establish, and no such deferral arrangement shall be a valid and binding obligation unless evidenced by a fully executed Award Agreement, the form of which the Administrator has approved, including
through the Administrator’s establishing a written program (the “Program”) under this Plan to govern the form of Award Agreements participating in such Program. Any such Award Agreement or Program shall specify the treatment of
dividends or dividend equivalent rights (if any) that apply to Awards governed thereby, and shall further provide that any elections governing payment of amounts pursuant to such Program shall be in writing, shall be delivered to the Company or its
agent in a form and manner that complies with Code Section 409A and the Guidance, and shall specify the amount to be distributed in settlement of the deferral arrangement, as well as the time and form of such distribution in a manner that
complies with Code Section 409A and the Guidance. 
  

 18 

	14.	Adjustments upon Changes in Capitalization, Dissolution, Merger or Asset Sale.

 (a) Changes in Capitalization. Subject to any required action by the stockholders of the Company, the number of shares of
Common Stock covered by each outstanding Award, the number of shares of Common Stock which have been authorized for issuance under the Plan, but as to which no Awards have yet been granted or which have been returned to the Plan upon cancellation,
forfeiture or expiration of an Award, each of the share limits set forth in Section 3(a) and 3(b), and the price per share of Common Stock covered by each such outstanding Award, shall be proportionately adjusted for any increase or decrease in
the number of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock, or any other increase or decrease in the number of issued shares of Common Stock
effected without receipt of consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall
be made by the Administrator, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock
of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to an Award. 
 (b) Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Administrator
shall notify each Participant as soon as practicable prior to the effective date of such proposed transaction. The Administrator in its discretion may provide for an Awardee to have the right to exercise his or her Award until fifteen (15) days
prior to such transaction as to all of the Common Stock covered thereby, including Shares as to which the Award would not otherwise be exercisable. In addition, the Administrator may provide that any Company repurchase option or forfeiture
applicable to any Shares purchased upon exercise of an Option or covered by a Stock Award shall lapse as to all such Shares, provided the proposed liquidation or dissolution takes place at the time and in the matter contemplated. To the extent it
has not been previously exercised, an Award will terminate immediately prior to the consummation of such proposed action. 
 (c) Merger or Asset Sale. In the event of a merger of the Company with or into another corporation, or the sale of substantially all of the assets of the Company, each outstanding non-cash Award shall be assumed or an
equivalent option or right substituted by the successor corporation or an Affiliate or Subsidiary of the successor corporation. In the event that the successor corporation refuses to assume or substitute for the non-cash Award, the Awardee shall
fully vest in and have the right to exercise the Award as to all of the Shares subject to the Award, including Shares as to which it would not otherwise be vested and exercisable, and any repurchase option or forfeiture applicable to any Shares
purchased upon exercise of an Option or covered by a Stock Award shall lapse as to all such Shares. If a non-cash Award becomes fully vested and exercisable in lieu of assumption or substitution in the event of a merger or sale of assets, the
Administrator shall notify the Awardee in writing or electronically that the Award shall be fully vested and exercisable for a period of fifteen (15) days from the date of such notice, and the Award shall terminate upon the expiration of such
period. For the purposes of this paragraph, the Award shall be considered assumed if, following the 

  

 19 

 
merger or sale of assets, the Option or Award confers the right to purchase or receive, for each Share of Common Sock subject to the Award immediately prior
to the merger or sale of assets, the consideration (whether stock, cash, or other securities or property) received in the merger or sale of assets by holders of Common Stock for each Share held on the effective date of the transaction (and if
holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the merger or sale of assets is not solely common
stock of the successor corporation, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of the Award, for each Share of Common Stock subject to the Award, to be solely
common stock of the successor corporation equal in fair market value to the per share consideration received by holders of Common Stock in the merger or sale of assets. The treatment of Cash Awards in a transaction governed by this
Section 14(c) shall be governed by the applicable Award Agreement. 
  

	15.	Amendment and Termination of the Plan.

 (a) Amendment and Termination. The Administrator may amend, alter or discontinue the Plan or any Award Agreement, but any such amendment shall be subject to approval of the stockholders of the Company in the manner and to
the extent required by Applicable Law. To the extent required to comply with Section 162(m), the Company shall seek re-approval of the Plan from time to time by the stockholders. In addition, without limiting the foregoing, unless approved by
the stockholders of the Company, no such amendment shall be made that would: 
 i. increase the maximum number of Shares
for which Awards may be granted under the Plan, other than an increase pursuant to Section 13 of the Plan; 
 ii. reduce the minimum exercise prices at which Options may be granted under the Plan (as set forth in Section 8(b)); 
 iii. result in a Repricing (as defined in Section 8(c)) of Options or Stock Appreciation Rights; or 
 iv. change the class of persons eligible to receive Awards under the Plan. 
 (b) Effect of Amendment or Termination. No amendment, suspension or termination of the Plan shall impair the rights of any Award, unless mutually agreed otherwise between the Participant and the Administrator, which
agreement must be in writing and signed by the Participant and the Company; provided further that the Administrator may amend an outstanding Award in order to conform it to the Administrator’s intent (in its sole discretion) that such Award not
be subject to Code Section 409A(a)(1). Termination of the Plan shall not affect the Administrator’s ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination.

  

 20 

 (c) Effect of the Plan on Other Arrangements. Neither the adoption of
the Plan by the Board or a Committee nor the submission of the Plan to the stockholders of the Company for approval shall be construed as creating any limitations on the power of the Board or any Committee to adopt such other incentive arrangements
as it or they may deem desirable, including without limitation, the granting of restricted stock or stock options otherwise than under the Plan, and such arrangements may be either generally applicable or applicable only in specific cases. The value
of Awards granted pursuant to the Plan will not be included as compensation, earnings, salaries or other similar terms used when calculating an Awardee’s benefits under any employee benefit plan sponsored by the Company or any Subsidiary except
as such plan otherwise expressly provides. 
  

	16.	Designation of Beneficiary.

 (a) An Awardee may file a written designation of a beneficiary who is to receive the Awardee’s rights pursuant to Awardee’s Award or the Awardee may include his or her Awards in an omnibus beneficiary designation for all
benefits under the Plan. To the extent that Awardee has completed a designation of beneficiary while employed with the Company, such beneficiary designation shall remain in effect with respect to any Award hereunder until changed by the Awardee to
the extent enforceable under Applicable Law. 
 (b) Such designation of beneficiary may be changed by the Awardee at any
time by written notice. In the event of the death of an Awardee and in the absence of a beneficiary validly designated under the Plan who is living at the time of such Awardee’s death, the Company shall allow the executor or administrator of
the estate of the Awardee to exercise the Award, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may allow the spouse or one or more dependents or relatives of the Awardee
to exercise the Award to the extent permissible under Applicable Law or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate. 
  

	17.	No Right to Awards or to Employment.

 No person
shall have any claim or right to be granted an Award and the grant of any Award shall not be construed as giving an Awardee the right to continue in the employ of the Company or its Affiliates. Further, the Company and its Affiliates expressly
reserve the right, at any time, to dismiss any Employee, Consultant or Awardee at any time without liability or any claim under the Plan, except as provided herein or in any Award Agreement entered into hereunder. 
  

	18.	Legal Compliance.

 Shares shall not be issued
pursuant to the exercise of an Option or Stock Award unless the exercise of such Option or Stock Award and the issuance and delivery of such Shares shall comply with Applicable Laws and shall be further subject to the approval of counsel for the
Company with respect to such compliance. 
  

 21 

	19.	Reservation of Shares.

 The Company, during the term
of this Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. 
  

	20.	Notice.

 Any written notice to the Company required
by any provisions of this Plan shall be addressed to the Secretary of the Company and shall be effective when received. 
  

	21.	Governing Law; Interpretation of Plan and Awards.

 (a) This Plan and all determinations made and actions taken pursuant hereto shall be governed by the substantive laws, but not the choice of law rules, of the state of Delaware. 
 (b) In the event that any provision of the Plan or any Award granted under the Plan is declared to be illegal, invalid or otherwise
unenforceable by a court of competent jurisdiction, such provision shall be reformed, if possible, to the extent necessary to render it legal, valid and enforceable, or otherwise deleted, and the remainder of the terms of the Plan and/or Award shall
not be affected except to the extent necessary to reform or delete such illegal, invalid or unenforceable provision. 
 (c) The headings preceding the text of the sections hereof are inserted solely for convenience of reference, and shall not constitute a part of the Plan, nor shall they affect its meaning, construction or effect. 
 (d) The terms of the Plan and any Award shall inure to the benefit of and be binding upon the parties hereto and their respective
permitted heirs, beneficiaries, successors and assigns. 
 (e) All questions arising under the Plan or under any Award
shall be decided by the Administrator in its total and absolute discretion. In the event the Participant believes that a decision by the Administrator with respect to such person was arbitrary or capricious, the Participant may request arbitration
with respect to such decision. The review by the arbitrator shall be limited to determining whether the Administrator’s decision was arbitrary or capricious. This arbitration shall be the sole and exclusive review permitted of the
Administrator’s decision, and the Awardee shall as a condition to the receipt of an Award be deemed to explicitly waive any right to judicial review. 
 (f) Notice of demand for arbitration shall be made in writing to the Administrator within thirty (30) days after the applicable decision by the Administrator. The arbitrator shall be selected from amongst
those members of the Board who are neither Administrators nor Employees. If there are no such members of the Board, the arbitrator shall be selected by the Board. The arbitrator shall be an individual who is an attorney licensed to practice law in
the State of California. Such arbitrator shall be neutral within 

  

 22 

 
the meaning of the Commercial Rules of Dispute Resolution of the American Arbitration Association; provided, however, that the arbitration shall not be
administered by the American Arbitration Association. Any challenge to the neutrality of the arbitrator shall be resolved by the arbitrator whose decision shall be final and conclusive. The arbitration shall be administered and conducted by the
arbitrator pursuant to the Commercial Rules of Dispute Resolution of the American Arbitration Association. The decision of the arbitrator on the issue(s) presented for arbitration shall be final and conclusive and may be enforced in any court of
competent jurisdiction. 
  

	22.	Limitation on Liability.

 The Company and any
Affiliate which is in existence or hereafter comes into existence shall not be liable to a Participant, an Employee, an Awardee or any other persons as to: 
 (a) The Non-Issuance of Shares. The non-issuance or sale of Shares (including under Section 18 above) as to which the Company has been unable, or the Administrator deems it infeasible, to obtain
from any regulatory body having jurisdiction the authority deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any shares hereunder; and 
 (b) Tax Consequences. Any tax consequence realized by any Participant, Employee, Awardee or other person due to the
receipt, vesting, exercise or settlement of any Option or other Award granted hereunder or due to the transfer of any Shares issued hereunder. The Participant is responsible for, and by accepting an Award under the Plan agrees to bear, all taxes of
any nature that are legally imposed upon the Participant in connection with an Award, and the Company does not assume, and will not be liable to any party for, any cost or liability arising in connection with such tax liability legally imposed on
the Participant. In particular, Awards issued under the Plan may be characterized by the Internal Revenue Service (the “IRS”) as “deferred compensation” under the Code resulting in additional taxes, including in some cases
interest and penalties. In the event the IRS determines that an Award constitutes deferred compensation under the Code or challenges any good faith characterization made by the Company or any other party of the tax treatment applicable to an Award,
the Participant will be responsible for the additional taxes, and interest and penalties, if any, that are determined to apply if such challenge succeeds, and the Company will not reimburse the Participant for the amount of any additional taxes,
penalties or interest that result. 
 (c) Forfeiture. The requirement that Participant forfeit an Award, or
the benefits received or to be received under an Award, pursuant to any Applicable Law. 
  

 23 

	23.	Unfunded Plan.

 Insofar as it provides for Awards,
the Plan shall be unfunded. Although bookkeeping accounts may be established with respect to Awardees who are granted Stock Awards under this Plan, any such accounts will be used merely as a bookkeeping convenience. The Company shall not be required
to segregate any assets which may at any time be represented by Awards, nor shall this Plan be construed as providing for such segregation, nor shall the Company nor the Administrator be deemed to be a trustee of stock or cash to be awarded under
the Plan. Any liability of the Company to any Participant with respect to an Award shall be based solely upon any contractual obligations which may be created by the Plan; no such obligation of the Company shall be deemed to be secured by any pledge
or other encumbrance on any property of the Company. Neither the Company nor the Administrator shall be required to give any security or bond for the performance of any obligation which may be created by this Plan. 
  

 24Employment Agreement

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (this “Agreement”) is entered into
as of June 29, 2007 by and between Basin Water, Inc., a Delaware corporation (the “Company”), and Scott B. Hamilton (“Executive”), and shall be effective as of July 30, 2007 or such later date mutually
agreed by the parties when Executive is able to commence full-time employment with the Company, but not later than August 15, 2007 (such date, the “Effective Date”). 
 WHEREAS, the Company desires to employ Executive, and Executive desires to be employed by the Company, on the terms and subject to the conditions set
forth herein. 
 NOW, THEREFORE, in consideration of the mutual promises herein contained, the parties agree as follows: 
 1. Definitions. As used in this Agreement, the following terms shall have the following meanings: 
 (a) Board. “Board” means the Board of Directors of the Company. 
 (b) Bonus. “Bonus” means an amount equal to the greater of (i) Executive’s target annual bonus for the fiscal year in
which the date of termination occurs, or (ii) the bonus awarded to Executive for the fiscal year prior to the date of termination. If any portion of the bonuses awarded to Executive consisted of securities or other property, the fair market
value thereof shall be determined in good faith by the Board. 
 (c) Cause. “Cause” means any of the following:

 (i) the commission of an act of fraud or embezzlement by Executive involving the Company or any successor or affiliate thereof or
Executive’s commission of any other act of dishonesty that has a material adverse impact on the Company or any successor or affiliate thereof; 
 (ii) a conviction of, or plea of “guilty” or “no contest” to, a felony by Executive or any other crime involving moral turpitude (it being understood that violation of the motor vehicle code does
not constitute such a crime); 
 (iii) any unauthorized use or disclosure by Executive of confidential information or trade secrets of the
Company or any successor or affiliate thereof; 
 (iv) Executive’s gross negligence, insubordination or material violation of any duty
of loyalty to the Company or any successor or affiliate thereof or any other material misconduct on the part of Executive; 
 (v)
Executive’s ongoing and repeated failure or refusal to perform or neglect of Executive’s duties as required by this Agreement, which failure, refusal or neglect continues for fifteen (15) days following Executive’s receipt of
written notice from the Company’s President and Chief Operating Officer (the “President”) or the Board stating with specificity the nature of such failure, refusal or neglect; or 

 (vi) Executive’s breach of any material provision of this Agreement; 
 provided, however, that prior to the determination that “Cause” under clause (i), (iii), (iv), (v) or (vi) of this Section 1(c)
has occurred, the Company shall (w) provide to Executive in writing, in reasonable detail, the reasons for the determination that such “Cause” exists, (x) other than with respect to clause (v) above which specifies the
applicable period of time for Executive to remedy his breach, afford Executive a reasonable opportunity to remedy any such breach, if such breach is capable of being remedied, and (y) provide Executive an opportunity to be heard prior to the
final decision to terminate the Executive’s employment hereunder for such “Cause”; provided, further, that prior to the determination that “Cause” under clause (vi) of this Section 1(c) has occurred as a result of
an alleged breach by Executive of Section 3 of this Agreement, the period provided to Executive to remedy such breach pursuant to clause (x) above shall be at least ninety (90) days. The Company shall make any decision that
“Cause” exists in good faith. Any act, or failure to act, based upon (A) authority given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for the Company or any successor or affiliate, or
(B) any applicable California rules of professional conduct which provide that Executive’s legal responsibilities as General Counsel or ethical responsibilities as a lawyer prohibited such act or failure to act, shall be conclusively
presumed to be done, or omitted to be done, in good faith and in the best interests of the Company or any successor or affiliate thereof. 
 The foregoing definition shall not in any way preclude or restrict the right of the Company or any successor or affiliate thereof to discharge or dismiss Executive for any other acts or omissions, but such other acts or omissions shall not
be deemed, for purposes of this Agreement, to constitute grounds for termination for Cause. 
 (d) Change in Control. “Change
in Control” means and includes each of the following: 
 (i) the acquisition, directly or indirectly, by any “person” or
“group” (as those terms are defined in Sections 3(a)(9), 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules thereunder) of “beneficial ownership” (as determined
pursuant to Rule 13d-3 under the Exchange Act) of securities entitled to vote generally in the election of directors (“voting securities”) of the Company that represent fifty percent (50%) or more of the combined voting
power of the Company’s then outstanding voting securities, other than: 
 (A) an acquisition by a trustee or other
fiduciary holding securities under any employee benefit plan (or related trust) sponsored or maintained by the Company or any person controlled by the Company or by any employee benefit plan (or related trust) sponsored or maintained by the Company
or any person controlled by the Company, 
 (B) an acquisition of voting securities by the Company or a corporation owned,
directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the stock of the Company, or 
  

 2 

 (C) an acquisition of voting securities pursuant to a transaction described in
subsection (iii) below that would not be a Change in Control under subsection (iii). 
 Notwithstanding the foregoing, the following
event shall not constitute an “acquisition” by any person or group for purposes of this Section 1(d): an acquisition of the Company’s securities by the Company which causes the Company’s voting securities beneficially owned
by a person or group to represent fifty percent (50%) or more of the combined voting power of the Company’s then outstanding voting securities; or 
 (ii) during any period of two (2) consecutive years, individuals who, at the beginning of such period, constitute the Board together with any new director(s) (other than a director designated by a person who
shall have entered into an agreement with the Company to effect a transaction described in clauses (i) or (iii) of this Section 1(d)) whose election by the Board or nomination for election by the Company’s stockholders was
approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the two (2) year period or whose election or nomination for election was previously so approved, cease for
any reason to constitute a majority thereof; or 
 (iii) the consummation by the Company (whether directly involving the Company or
indirectly involving the Company through one or more intermediaries) of (x) a merger, consolidation, reorganization, or business combination or (y) a sale or other disposition of all or substantially all of the Company’s assets or
(z) the acquisition of assets or stock of another entity, in each case other than a transaction: 
 (A) which results in
the Company’s voting securities outstanding immediately before the transaction continuing to represent (either by remaining outstanding or by being converted into voting securities of the Company or the person that, as a result of the
transaction, controls, directly or indirectly, the Company or owns, directly or indirectly, all or substantially all of the Company’s assets or otherwise succeeds to the business of the Company (the Company or such person, the
“Successor Entity”)), directly or indirectly, at least a majority of the combined voting power of the Successor Entity’s outstanding voting securities immediately after the transaction, and 
 (B) after which no person or group beneficially owns voting securities representing fifty percent (50%) or more of the combined
voting power of the Successor Entity; provided, however, that no person or group shall be treated for purposes of this clause (B) as beneficially owning fifty percent (50%) or more of combined voting power of the Successor
Entity solely as a result of the voting power held in the Company prior to the consummation of the transaction; or 
  

 3 

 (iv) the Company’s stockholders approve a liquidation or dissolution of the Company. 
 (e) Code. “Code” means the Internal Revenue Code of 1986, as amended from time to time, and the Treasury Regulations and other
interpretive guidance issued thereunder. 
 (f) Excise Tax. “Excise Tax” means the excise tax imposed by
Section 4999 of the Code, together with any interest or penalties imposed with respect to such excise tax. 
 (g) Good Reason.
“Good Reason” means Executive’s voluntary resignation following any one or more of the following that is effected without Executive’s written consent: 
 (i) the relocation of the office of Executive more than fifty (50) miles from the Primary Work Locations or the Company’s requiring Executive
to relocate his residence outside of the Chicago, Illinois metropolitan area; 
 (ii) a material reduction in the nature or scope of
Executive’s responsibilities, or the assignment to Executive of duties that are materially inconsistent with Executive’s position (in each case as compared to Executive’s responsibilities, duties or position on the Effective Date)
(provided that the fact that the Company becomes a subsidiary of an acquirer or a division of an acquirer shall not in and of itself by considered a material reduction or change to Executive’s responsibilities, duties or position); 

(iii) a reduction in Executive’s Base Salary (as defined herein) or target bonus as an employee of the Company, other than pursuant to a
Company-wide reduction of base salaries and target bonuses for employees of the Company generally, provided that such reduction is no greater in proportion to the reduction in Base Salary and target bonus for the Company’s other senior
executives; 
 (iv) the Company’s failure to continue in effect compensation and benefit plans that provide Executive with benefits
that are no less favorable on an aggregate basis, both in terms of the amount of benefits provided and the level of Executive’s participation relative to other participants, to the benefits provided to Executive under the Company’s
compensation and benefit plans and practices on the Effective Date; 
 (v) any failure by the Company to obtain the assumption of this
Agreement by any successor or assign of the Company as contemplated by Section 11(b); 
 (vi) any change in Executive’s reporting
relationship such that Executive no longer reports to the person designated in accordance with Section 3; or 
 (vii) the
Company’s breach of any material provision of this Agreement. 
 Executive shall provide to the Company in writing, in reasonable
detail, notice of the breach, event or condition described in this paragraph (g) within sixty (60) days of the initial occurrence of such breach or event or existence of such condition. Upon such notice, the Company shall have a period of
thirty (30) days during which it may remedy the breach, event or condition, if such breach, event or condition is capable of being remedied. 
  

 4 

 (h) Payment. “Payment” means any payment or distribution in the nature of
compensation (within the meaning of Section 280G(b)(2) of the Code) to or for the benefit of the Executive, whether paid or payable pursuant to this Agreement or otherwise. 
 (i) Permanent Disability. Executive’s “Permanent Disability” shall be deemed to have occurred if Executive shall become
physically or mentally incapacitated or disabled or otherwise unable fully to discharge his duties hereunder for a period of ninety (90) consecutive calendar days or for one hundred twenty (120) calendar days in any one hundred eighty
(180) calendar-day period. The existence of Executive’s Permanent Disability shall be determined by the Company on the advice of a physician chosen by the Company and the Company reserves the right to have the Executive examined by a
physician chosen by the Company at the Company’s expense. 
 (j) Stock Awards. “Stock Awards” means all stock
options, restricted stock and such other awards granted pursuant to the Company’s stock option and equity incentive award plans or agreements and any shares of stock issued upon exercise thereof. 
 2. Term of Agreement. Executive’s employment under this Agreement shall commence on the Effective Date and continue until the third
anniversary of the Effective Date (the “Employment Term”). 
 3. Services to Be Rendered. 
 (a) Duties and Responsibilities. Executive shall serve as General Counsel of the Company and shall perform such duties as are typical for that
position in public companies of similar size and industry. In the performance of such duties, Executive shall report directly to the President and shall be subject to the direction of the President and the Board and to such limits upon
Executive’s authority as the President or the Board may from time to time impose. Executive hereby consents to serve as an officer and/or director of the Company or any subsidiary or affiliate thereof without any additional salary or
compensation, if so requested by the President or the Board. Executive shall be employed by the Company on a full time basis. Executive’s primary place of work shall be the Company’s facility in Rancho Cucamonga, California, or such other
location as may be designated by the President from time to time (such locations referred to herein as the “Primary Work Locations”). The Company shall not require or expect the Executive to relocate his residence from the Chicago,
Illinois metropolitan area as part of his job responsibilities. Executive understands and agrees that he may be required to travel and perform services for the Company at such other places within or outside the United States as the President may
direct from time to time, however, Executive’s primary place of work shall remain the Primary Work Locations. Executive shall be subject to and comply with the policies and procedures generally applicable to senior executives of the Company to
the extent the same are not inconsistent with any term of this Agreement. 
 (b) Exclusive Services. Executive shall at all times
faithfully, industriously and to the best of his ability, experience and talent perform to the satisfaction of the President 

  

 5 

 
and the Board all of the duties that may be assigned to Executive hereunder and shall devote substantially all of his business time and efforts to the
performance of such duties. Subject to the terms of Section 6, this shall not preclude Executive from devoting time to personal and family investments or serving on community and civic boards, or participating in industry associations, provided
such activities do not materially interfere with his duties to the Company, as determined in good faith by the President and the Board. Executive agrees that he will not join any boards, other than community and civic boards (which do not materially
interfere with his duties to the Company), without the prior approval of the President or the Board. 
 4. Compensation and Benefits.
The Company shall pay or provide, as the case may be, to the Executive the compensation and other benefits and rights set forth in this Section 4, commencing as of the Effective Date: 
 (a) Base Salary. The Company shall pay to Executive a base salary of $175,000 per year (the “Base Salary”), payable in accordance
with the Company’s usual pay practices (and in any event no less frequently than monthly). Executive’s Base Salary shall be subject to review annually by and at the sole discretion of the Compensation Committee of the Board based on the
Company’s performance, Executive’s performance and taking into account the recommendation of the President. Such adjusted annual base salary shall then become Executive’s “Base Salary” for purposes of this Agreement.

 (b) Bonus. Executive shall be eligible to receive a bonus based on achievement of annual targeted revenue and net income, as
established by the Compensation Committee of the Board each fiscal year. If actual performance is less than 80% of target, no bonus will be earned or paid. If actual performance is 80% or more of target, then Executive shall earn and be paid a bonus
as a percentage of Base Salary as follows: 
  

																
	 % of target achieved
	  	80	%	 	90	%	 	100	%	 	110	%	 	120	%+
	 % of Base Salary as bonus
	  	15	%	 	30	%	 	50	%	 	60	%	 	75	%

 All interim percentages will be calculated on straight-line, pro rata basis. For this purpose, revenue and net
income shall be defined to exclude contribution from any future acquisitions, initiatives or other joint ventures of the Company, unless specifically included by the Compensation Committee of the Board, in advance and in writing. 
 In the event that the performance targets are not achieved, the Compensation Committee of the Board in its sole discretion may elect to pay a discretionary bonus of up
to 25% of Base Salary based on other factors not related to achievement of the performance targets. 
  

 6 

 (c) Benefits. Executive shall be entitled to participate in benefits under the Company’s
benefit plans and arrangements, including, without limitation, any employee benefit plan or arrangement made available in the future by the Company to its senior executives, subject to and on a basis consistent with the terms, conditions and overall
administration of such plans and arrangements. The Company shall have the right to amend or delete any such benefit plan or arrangement made available by the Company to its senior executives and not otherwise specifically provided for herein. The
Company shall provide Executive long-term disability insurance at its cost in an amount equal to 70% of Base Salary up to a maximum benefit of $12,500 per month (total benefit to be provided through a combination of “group” program offered
to all employees and supplemental individual disability policy for Executive). 
 (d) Expenses. The Company shall reimburse Executive
for reasonable out-of-pocket expenses incurred in connection with the performance of his duties hereunder, subject to (i) such policies as the Company may from time to time establish, and (ii) Executive furnishing the Company with evidence
in the form of receipts satisfactory to the Company substantiating the claimed expenditures. Additionally, the Company shall reimburse Executive for the following: 
 (i) Out-of-pocket expenses relating to state and territory bar and\or registration dues and fees necessary to remain on the roles of all jurisdictions in which Executive is currently a member and required to become a
member of the bar; 
 (ii) Out-of-pocket expenses relating to all costs for necessary continuing legal education required to maintain
membership in good standing in all jurisdictions in which Executive is currently a member and required to become a member of the bar and\or to register; 
 (iii) Out-of-pocket expenses not to exceed an aggregate of $3,500 per year relating to membership in the American Bar Association, the Association of Corporation Counsel, and two other legal associations; and

 (iv) Reasonable expenses of living in Rancho Cucamonga, California and for the cost of one round trip coach airfare between Chicago,
Illinois and Rancho Cucamonga, California (or the nearest airport) each week. 
 (e) Paid Time Off. Executive shall be entitled to
such periods of paid time off (“PTO”) each year as provided under the Company’s PTO policy and as otherwise provided for senior executive officers, but in no event shall Executive be entitled to less than three (3) weeks
of PTO. 
 (f) Equity Plans. 
 (i) Executive shall be entitled to participate in any equity-based, incentive or other employee benefit plan that is generally available to senior executive officers, as distinguished from general management, of the Company. Except as
otherwise provided in this Agreement, Executive’s participation in and benefits under any such plan shall be on the terms and subject to the conditions specified in the governing document of the particular plan. 
  

 7 

 In particular, Executive shall be eligible to participate in the Company’s 2007 option plan program adopted by the
Compensation Committee. Pursuant to the 2007 option plan program, Executive shall be eligible to receive, subject to the Company’s satisfactory financial performance, options to purchase up to that number of the Company’s common stock
equal to (A) 50% of Executive’s Base Salary set forth in Section 4(a) divided by (B) the fair market value of the Company’s common stock on the date of grant. It is agreed that for 2007, Executive will be eligible for an
option grant based on the entire year’s Base Salary, rather than a pro rated Base Salary. 
 (ii) On the Effective Date, Executive
shall be granted a restricted stock award of 25,000 shares of the Company’s common stock (the “Restricted Stock”) under the Company’s 2006 Equity Incentive Award Plan (the “2006 Plan”). Any unvested shares
of Restricted Stock will be subject to forfeiture in the event Executive’s employment with or service to the Company terminates prior to the vesting of the shares in accordance with the terms of this Agreement. The restrictions on such
Restricted Stock shall lapse in three (3) equal annual installments commencing on the first anniversary of the Effective Date, subject to Executive’s continued employment or service with the Company on each such date. Subject to Sections
4(g) and 5, such Restricted Stock shall be subject to the terms and conditions of the 2006 Plan and the restricted stock award agreement pursuant to which such Restricted Stock is granted to the extent such provisions are not less favorable to
Executive than the applicable provisions of this Agreement. 
 (iii) On the Effective Date, Executive shall be granted an option (the
“Time Vesting Option”) to purchase 25,000 shares of the Company’s common stock at an exercise price equal to the fair market value of the Company’s common stock on such date, as determined under the 2006 Plan. Such Time
Vesting Option shall vest and become exercisable over a three year period, with one-third of the shares subject to such Time Vesting Option vesting on each of the first, second and third anniversaries of the Effective Date, for so long as the
Executive continues to provide services to the Company. 
 (iv) On the Effective Date, Executive shall be granted options to purchase 45,000
shares of the Company’s common stock at an exercise price equal to the fair market value of the Company’s common stock on such date, as determined under the 2006 Plan. Such options shall vest and become exercisable as follows:
(A) 6,667 shares subject to such option shall be vested and exercisable on the date that the closing price of the Company’s common stock on Nasdaq (or such other stock exchange or national market system on which the Company’s common
stock is then traded) equals or exceeds $15.25 per share for a period of at least 45 continuous days within the three-year period from the Effective Date; (B) 6,667 shares subject to such option shall be vested and exercisable on the date that
the closing price of the Company’s common stock on Nasdaq (or such other stock exchange or national market system on which the Company’s common stock is then traded) equals or exceeds $19 per share for a period of at least 45 continuous
days within the three-year period from the Effective Date; and (C) 31,666 shares subject to such option shall be vested and exercisable on the date that the closing price of the Company’s common stock on Nasdaq (or such other stock
exchange or national market system on which the Company’s common stock is then traded) equals or exceeds $24.00 per share for a period of at least 45 continuous days within the four-year period from the Effective Date, in each case so long as
Executive continues to provide services to the Company during such period. 
  

 8 

 (g) Accelerated Vesting of Stock Awards. 
 (i) In the event of a Change in Control, the vesting and/or exercisability of one hundred percent (100%) of Executive’s outstanding Stock
Awards shall be automatically accelerated immediately prior to the Change in Control. 
 (ii) If Executive’s employment is terminated
by the Company without Cause or by Executive for Good Reason, in each case within twenty-four (24) months following a Change in Control, the vesting and/or exercisability of one hundred percent (100%) of Executive’s outstanding Stock
Awards shall be automatically accelerated as of the date of termination. 
 (iii) If Executive’s employment is terminated by the
Company without Cause or by Executive for Good Reason, the vesting and/or exercisability of one hundred percent (100%) of Executive’s outstanding Stock Awards shall be automatically accelerated as of the date of termination (provided that
the vesting and/or exercisability of any Stock Awards the vesting of which is performance-based (including those Stock Awards granted pursuant to Section 4(f)(iv)) shall not be accelerated pursuant to this clause (iii)). 
 (iv) The vesting pursuant to clauses (i), (ii) and (iii) of this Section 4(g) shall be cumulative. The foregoing provisions are hereby
deemed to be a part of each Stock Award and to supersede any less favorable provision in any agreement or plan regarding such Stock Award. 
 5. Termination and Severance. Executive shall be entitled to receive benefits upon termination of employment only as set forth in this Section 5: 
 (a) At-Will Employment; Termination. The Company and Executive acknowledge that Executive’s employment is and shall continue to be at-will, as defined under applicable law, and that Executive’s
employment with the Company may be terminated by either party at any time for any or no reason, with or without notice. If Executive’s employment terminates for any reason, Executive shall not be entitled to any payments, benefits, damages,
award or compensation other than as provided in this Agreement. Executive’s employment under this Agreement shall be terminated immediately on the death of Executive. Upon Executive’s employment termination for any reason, the Employer
shall pay to Executive (or to the Executive’s representative or estate, in the event of his death or Permanent Disability), within ten (10) days after the date of termination, an amount equal to the sum of (i) Executive’s Base
Salary accrued through the date of termination, (ii) any bonus earned and approved by the Compensation Committee as of the date of termination under the Company’s bonus program, but not yet paid to Executive, (iii) any amounts payable
under any of the employee benefit plans of the Company in accordance with the terms of such plans, (iv) any accrued but unpaid vacation, in accordance with the terms of the Company’s vacation plan, and (v) any unreimbursed expenses
incurred by Executive under Section 4(d). Such payments, rights and benefits described in clauses (i) through (v) of this Section 5(a) are collectively referred to hereinafter as the “Accrued Obligations.”

  

 9 

 (b) Termination without Cause or for Good Reason. 
 (i) Termination Apart From Change in Control. If Executive’s employment is terminated by the Company without Cause or by Executive for Good
Reason prior to a Change in Control or more than twenty-four (24) months following a Change in Control, Executive shall be entitled to receive, in lieu of any severance benefits to which Executive may otherwise be entitled under any severance
plan or program of the Company, the benefits provided below: 
 (A) the Company shall pay to Executive the Accrued
Obligations in accordance with Section 5(a); 
 (B) subject to Executive’s continued compliance with the provisions
of Section 6, Executive shall be entitled to receive severance pay in an amount equal to the sum of: 
 (1) Executive’s base salary as in effect immediately prior to the date of
termination for the twelve (12) month period following the date of termination, payable in a lump sum as soon as administratively practicable following the effective date of Executive’s Release (as defined below) but in any event no later
than two and one-half (2  1/2) months following the date of termination; plus 
 (2) an amount equal to Executive’s Bonus for the year in which the date of
termination occurs, prorated for the period of Executive’s service during the year in which the date of termination occurs, payable in a lump sum as soon as administratively practicable following the effective date of Executive’s Release
but in any event no later than two and one-half (2  1/2) months following the date of termination;

 (C) subject to Executive’s continued compliance with the provisions of Section 6, for the period
beginning on the date of termination and ending on the date which is twelve (12) full months following the date of termination (or, if earlier, the date on which Executive accepts employment with another employer that provides comparable
benefits in terms of cost and scope of coverage), the Company shall pay for and provide Executive and his dependents with healthcare benefits which are substantially the same as the benefits provided to Executive immediately prior to the date of
termination, including, if necessary, paying the costs associated with continuation coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”); and 
 (D) subject to Executive’s continued compliance with the provisions of Section 6, during the twelve (12) months following
the date of termination, Executive shall be entitled to executive-level outplacement services at the Company’s expense, not to exceed $15,000. Such services shall be provided by a firm selected by Executive from a list compiled by the Company.

  

 10 

 (ii) Termination In Connection With Change in Control. If Executive’s employment is
terminated by the Company without Cause or by Executive for Good Reason within twenty-four (24) months following a Change in Control, Executive shall be entitled to receive, in lieu of any severance benefits to which Executive may otherwise be
entitled under any severance plan or program of the Company, the benefits provided below: 
 (A) the Company shall pay to
Executive the Accrued Obligations in accordance with Section 5(a); 
 (B) subject to Executive’s continued
compliance with the provisions of Section 6, Executive shall be entitled to receive severance pay in an amount equal to the sum of: 
 (1) Executive’s Base Salary as in effect immediately prior to date of
termination for a period equal to twelve (12) months, payable in a lump sum as soon as administratively practicable following the effective date of Executive’s Release but in any event no later than two and one-half (2  1/2) months following the date of termination; plus 
 (2) an amount equal to Executive’s Bonus for the year in which the date of
termination occurs, payable in a lump sum as soon as administratively practicable following the effective date of Executive’s Release but in any event no later than two and one-half (2  1/2) months following the date of termination; 
 (C) subject to Executive’s continued compliance with the provisions of Section 6, for the period beginning on the date of termination and ending on the date which is twelve (12) full months following
the date of termination (or, if earlier, the date on which Executive accepts employment with another employer that provides comparable benefits in terms of cost and scope of coverage), the Company shall pay for and provide Executive and his
dependents with healthcare benefits which are substantially the same as the benefits provided to Executive immediately prior to the date of termination, including, if necessary, paying the costs associated with continuation coverage pursuant to
COBRA; and 
 (D) subject to Executive’s continued compliance with the provisions of Section 6, during the twelve
(12) months following the date of termination, Executive shall be entitled to executive-level outplacement services at the Company’s expense, not to exceed $15,000. Such services shall be provided by a firm selected by Executive from a
list compiled by the Company. 
 The payments and benefits provided for in this Section 5(b)(ii) shall only be payable in the event
Executive’s employment is terminated by the Company without Cause or by Executive for Good Reason within twenty-four (24) months following a Change in Control. If Executive’s employment is terminated by the Company without Cause or by
Executive for Good 

  

 11 

 
Reason prior to a Change in Control or more than twenty-four (24) months following a Change in Control, then Executive shall receive the payments and
benefits described in Section 5(b)(i) and shall not be eligible to receive any of the payments and benefits described in this Section 5(b)(ii). 
 (c) Termination for Cause or Permanent Disability, Voluntary Resignation Without Good Reason or Death. If Executive’s employment is terminated by the Company for Cause or as a result of Executive’s
Permanent Disability, by Executive without Good Reason or as a result of Executive’s death, or if the Employment Term expires and is not renewed by the Company, the Company shall not have any other or further obligations to Executive under this
Agreement (including any financial obligations) except that Executive shall be entitled to receive the Accrued Obligations in accordance with Section 5(a). In addition, if Executive’s employment is terminated by the Company for Cause or as
a result of Executive’s Permanent Disability, by Executive without Good Reason or as a result of Executive’s death, or if the Employment Term expires and is not renewed by the Company, all vesting of Executive’s unvested Stock Awards
previously granted to him by the Company shall cease and none of such unvested Stock Awards shall be exercisable following the date of such termination. The foregoing shall be in addition to, and not in lieu of, any and all other rights and remedies
which may be available to the Company under the circumstances, whether at law or in equity. 
 (d) Release. As a condition to the
Executive’s receipt of any post-termination benefits described in this Agreement, Executive shall execute a Release (the “Release”) in the form attached hereto and incorporated herein as Exhibit A or Exhibit B, as
applicable. Such Release shall specifically relate to all of Executive’s rights and claims in existence at the time of such execution, including any claims related to Executive’s employment by the Company and his termination of employment,
and shall exclude any continuing obligations the Company may have to Executive following the date of termination under this Agreement, any other agreement providing for obligations to survive Executive’s termination of employment or any claims
for benefits under the Company’s “employee benefit plans” (as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)). It is understood that, as specified in the
applicable Release, Executive has a certain number of calendar days to consider whether to execute such Release, and Executive may revoke such Release within seven (7) calendar days after execution. In the event Executive does not execute or
revokes such Release within sixty (60) days following the date of termination, no benefits shall be payable under this Agreement. 
 (e)
Delay of Payments. If at the time of Executive’s termination of employment with the Company Executive is a “specified employee” as defined in Section 409A of the Code, as determined by the Company in accordance with
Section 409A of the Code, and the deferral of the commencement of any payments or benefits otherwise payable hereunder as a result of such termination of employment is necessary in order to prevent any accelerated or additional tax under
Section 409A of the Code, then the Company will defer the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to Executive) until the date that
is at least six (6) months following Executive’s termination of employment with the Company (or the earliest date as is permitted under Section 409A of the Code). 
 (f) Exclusive Remedy. Except as otherwise expressly required by law (e.g., 

  

 12 

 
COBRA) or as specifically provided herein, all of the Executive’s rights to salary, severance, benefits, bonuses and other amounts hereunder (if any)
accruing after the termination of Executive’s employment shall cease upon such termination. In the event of a termination of Executive’s employment with the Company, the Executive’s sole remedy shall be to receive the payments and
benefits described in this Section 5. In addition, Executive acknowledges and agrees that he is not entitled to any reimbursement by the Company for any taxes payable by Executive as a result of the payments and benefits received by Executive
pursuant to this Section 4, including, without limitation, any excise tax imposed by Section 4999 of the Code. 
 (g) No
Mitigation. Executive shall not be required to mitigate the amount of any payment provided for in this Section 5 by seeking other employment or otherwise, nor shall the amount of any payment or benefit provided for in this Section 5 be
reduced by any compensation earned by Executive as the result of employment by another employer or self-employment or by retirement benefits; provided, however, that loans, advances (other than salary advances) or other amounts owed by
Executive to the Company under a written agreement may be offset by the Company against amounts payable to Executive under this Section 5; provided, further, that, as provided in Section 5(b), Executive’s right to
continued healthcare benefits following his termination of employment will terminate on the date on which he accepts employment with another employer that provides comparable benefits in terms of cost and scope of coverage. 
 (h) Return of the Company’s Property. If Executive’s employment is terminated for any reason, the Company shall have the right, at its
option, to require Executive to vacate his offices prior to or on the effective date of termination and to cease all activities on the Company’s behalf. Upon the termination of his employment in any manner, as a condition to the
Executive’s receipt of any post-termination benefits described in this Agreement, Executive shall immediately surrender to the Company all lists, books and records of, or in connection with, the Company’s business, and all other property
belonging to the Company, it being distinctly understood that all such lists, books and records, and other documents, are the property of the Company. Executive shall deliver to the Company a signed statement certifying compliance with this
Section 5(h) prior to the receipt of any post-termination benefits described in this Agreement. 
 6. Certain Covenants.

 (a) Noncompetition. Except as may otherwise be approved by the President and the Board, during the term of Executive’s
employment, Executive shall not have any ownership interest (of record or beneficial) in, or have any interest as an employee, salesman, consultant, officer or director in, or otherwise aid or assist in any manner, any firm, corporation,
partnership, proprietorship or other business that engages in any county, city or part thereof in the United States and/or any foreign country in a business which competes directly or indirectly (as determined by the President and the Board) with
the Company’s business in such county, city or part thereof, so long as the Company, or any successor in interest of the Company to the business and goodwill of the Company, remains engaged in such business in such county, city or part thereof
or continues to solicit customers or potential customers therein; provided, however, that Executive may own, directly or indirectly, solely as an investment, securities of any entity which are traded on any national securities exchange
if 

  

 13 

 
Executive (x) is not a controlling person of, or a member of a group which controls, such entity; or (y) does not, directly or indirectly, own one
percent (1%) or more of any class of securities of any such entity. 
 (b) Confidentiality. Executive hereby agrees that, other
than as Executive determines in good faith is necessary or appropriate in the discharge of his duties hereunder, during the term of this Agreement and thereafter, he shall not, directly or indirectly, disclose or make available to any person, firm,
corporation, association or other entity for any reason or purpose whatsoever, any Confidential Information (as defined below). Executive further agrees that, upon termination of his employment with the Company, all Confidential Information in his
possession that is in written or other tangible form (together with all copies or duplicates thereof, including computer files) shall be returned to the Company and shall not be retained by Executive or furnished to any third party, in any form
except as provided herein; provided, however, that, this Section 6(b) shall not apply to Confidential Information that (i) was publicly known at the time of disclosure to Executive, (ii) becomes publicly known or
available thereafter other than by any means in violation of this Agreement or any other duty owed to the Company by Executive, (iii) is lawfully disclosed to Executive by a third party, (iv) is required to be disclosed by law or by any
court, arbitrator, mediator or administrative or legislative body (including any committee thereof) with actual or apparent jurisdiction to order Executive to disclose or make accessible any information, or (v) is related to any litigation,
arbitration or mediation between the parties, including, but not limited to, the enforcement of this Agreement. As used in this Agreement, the term “Confidential Information” means: confidential information disclosed to Executive or
known by Executive as a consequence of or through Executive’s relationship with the Company about the customers, employees, business methods, public relations methods, organization, procedures or finances, including, without limitation,
information of or relating to customer lists, product lists, product road maps, technology specifications or other information related to the products and services of the Company and its affiliates. Nothing herein shall limit in any way any
obligation Executive may have relating to Confidential Information under any other agreement with or promise to the Company. 
 (c)
Solicitation of Employees. Executive shall not during the term of Executive’s employment and for the applicable severance period for which Executive receives severance benefits following any termination hereof pursuant to
Section 5(b) above (regardless of whether Executive receives such severance benefits in a lump sum payment) (the “Restricted Period”), directly or indirectly, solicit or encourage to leave the employment of the Company or any
of its affiliates, any employee of the Company or any of its affiliates. 
 (d) Solicitation of Prospective Customers. Executive shall
not during the Restricted Period, directly or indirectly, solicit the business of any person or entity that is a Prospective Customer (as defined below) or a customer or client of the Company. As used herein, “Prospective Customer”
shall mean any person or entity whose business is being actively sought or in any way solicited, or known by Executive to be a person or entity whose business is the subject of possible solicitation by the Company. Executive expressly acknowledges
that the length of time involved in soliciting and obtaining the business of new customers can be as long as two (2) years. 
  

 14 

 (e) Assignment of Inventions. 
 (i) Inventions. Executive will promptly disclose in writing to the Company complete information concerning each and every invention, discovery,
improvement, device, design, apparatus, practice, process, software or computer program, method or product, whether or not patentable or copyrightable, made, developed, perfected, devised, conceived or first reduced to practice by Executive, either
solely or in collaboration with others, during Executive’s employment under this Agreement, whether or not during regular working hours, relating either directly or indirectly to the business, products or practices of the Company (hereinafter
referred to as the “Inventions”). Executive, to the extent that he has the legal right to do so, hereby acknowledges that any and all of the Inventions are the property of the Company and hereby assigns and agrees to assign to the
property of the Company any and all of Executive’s right, title and interest in and to any and all of the Inventions without further payment (it being agreed that any costs of effectuating such assignment shall be paid by the Company).

 (ii) Future Inventions. As to any future Inventions made by the Executive which relate solely to the business, products or
practices of the Company and which are first conceived or reduced to practice during the term of Executive’s employment with the Company, but which are claimed for any reason to belong to an entity or person other than the Company, the
Executive will promptly disclose the same in writing to the Company and shall not disclose the same to others if the Company, within twenty (20) days thereafter, shall claim ownership of such Inventions under the terms of this Agreement.

 (iii) Limitations. Pursuant to Section 2870 of the California Labor Code, the provisions of this Section 6(e) shall not
apply to any Invention meeting the following conditions (an “Excluded Invention”): 
 (A) such Invention was
developed entirely on the Executive’s own time; and 
 (B) such Invention was made without the use of any Company
equipment, supplies, facilities or trade secret information; and 
 (C) such Invention does not relate (x) directly to
the business of the Company, or (y) to the Company’s actual or demonstrably anticipated research or development; and 
 (D) such Invention does not result from any work performed by Executive for the Company. 
 (f) Rights and Remedies Upon
Breach. If Executive breaches or threatens to commit a breach of any of the provisions of this Section 6 (the “Restrictive Covenants”), the Company shall have the following rights and remedies, each of which rights and
remedies shall be independent of the other and severally enforceable, and all of which rights and remedies shall be in addition to, and not in lieu of, any other rights and remedies available to the Company under law or in equity: 
 (i) Specific Performance. The right and remedy to have the Restrictive Covenants specifically enforced by any court having equity jurisdiction,
all without the need to post a bond or any other security or to prove any amount of actual damage or that money damages would not provide an adequate remedy, it being acknowledged and agreed that any such breach or threatened breach will cause
irreparable injury to the Company and that money damages will not provide adequate remedy to the Company; and 
  

 15 

 (ii) Cessation of Payments, Accounting and Indemnification. The right and remedy to cease all
payments to Executive under Section 5(b) and to require Executive (i) to account for and pay over to the Company all compensation, profits, monies, accruals, increments or other benefits derived or received by Executive or any associated
party deriving such benefits as a result of any such breach of the Restrictive Covenants; and (ii) to indemnify the Company against any other losses, damages (including special and consequential damages), costs and expenses, including actual
attorneys’ fees and court costs, which may be incurred by them and which result from or arise out of any such breach or threatened breach of the Restrictive Covenants. 
 (g) Severability of Covenants/Blue Pencilling. If any court determines that any of the Restrictive Covenants, or any part thereof, is invalid or
unenforceable, the remainder of the Restrictive Covenants shall not thereby be affected and shall be given full effect, without regard to the invalid portions. If any court determines that any of the Restrictive Covenants, or any part thereof, are
unenforceable because of the duration of such provision or the area covered thereby, such court shall have the power to reduce the duration or area of such provision and, in its reduced form, such provision shall then be enforceable and shall be
enforced. Executive hereby waives any and all right to attack the validity of the Restrictive Covenants on the grounds of the breadth of their geographic scope or the length of their term. 
 (h) Enforceability in Jurisdictions. The Company and Executive intend to and do hereby confer jurisdiction to enforce the Restrictive Covenants
upon the courts of any jurisdiction within the geographical scope of such covenants. If the courts of any one or more of such jurisdictions hold the Restrictive Covenants wholly unenforceable by reason of the breadth of such scope or otherwise, it
is the intention of the Company and Executive that such determination not bar or in any way affect the right of the Company to the relief provided above in the courts of any other jurisdiction within the geographical scope of such covenants, as to
breaches of such covenants in such other respective jurisdictions, such covenants as they relate to each jurisdiction being, for this purpose, severable into diverse and independent covenants. 
 (i) Definitions. For purposes of this Section 6, the term “Company” means not only Basin Water, Inc., but also any company,
partnership or entity which, directly or indirectly, controls, is controlled by or is under common control with Basin Water, Inc. 
 7.
Parachute Payments. 
 (a) Best Pay Provision. Anything in this Agreement to the contrary notwithstanding, in the event it shall
be determined that any Payment under this Agreement would, when combined with all other Payments Executive receives from the Company or any 

  

 16 

 
successor or parent or subsidiary thereof, but for this Section 7 be subject to the Excise Tax, then such Payments shall be either (a) the full
amount of such Payments or (b) such lesser amount (with cash payments being reduced before stock option compensation) as would result in no portion of the Payments being subject to the Excise Tax, whichever of the foregoing amounts, taking into
account the applicable federal, state and local employment taxes, income taxes and the Excise Tax, results in Executive’s receipt, on an after-tax basis, of the greater amount of the Payments notwithstanding that all or some portion of the
Payments may be subject to the Excise Tax. 
 (b) Determinations. All determinations required to be made under this Section 7,
including whether and to what extent the Payments shall be reduced and the assumptions to be utilized in arriving at such determination, shall be made by the certified public accounting firm used by the Company immediately prior to the Change in
Control or, if such firm declines to serve, such other nationally recognized certified public accounting firm as may be designated by the Executive (the “Accounting Firm”). The Accounting Firm shall provide detailed supporting
calculations both to the Company and the Executive at such time as is requested by the Company. All fees and expenses of the Accounting Firm shall be borne solely by the Company. Any determination by the Accounting Firm shall be binding upon the
Company and the Executive. For purposes of making the calculations required by this Section 7, the Accounting Firm may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good-faith
interpretations concerning the application of Sections 280G and 4999 of the Code. 
 8. Insurance. The Company shall have the right to
take out life, health, accident, “key-man” or other insurance covering Executive, in the name of the Company and at the Company’s expense in any amount deemed appropriate by the Company. Executive shall assist the Company in obtaining
such insurance, including, without limitation, submitting to any required examinations and providing information and data required by insurance companies. Executive shall have no interest in any such policies obtained by the Company. 
 9. Arbitration. Any dispute, claim or controversy based on, arising out of or relating to Executive’s employment or this Agreement shall be
settled by final and binding arbitration in San Diego County, California, before a single neutral arbitrator in accordance with the National Rules for the Resolution of Employment Disputes (the “Rules”) of the American Arbitration
Association, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction. Arbitration may be compelled pursuant to the California Arbitration Act (Code of Civil Procedure §§ 1280 et seq.). If
the parties are unable to agree upon an arbitrator, one shall be appointed by the AAA in accordance with its Rules. Each party shall pay the fees of its own attorneys, the expenses of its witnesses and all other expenses connected with presenting
its case; however, Executive and the Company agree that, to the extent permitted by law, the arbitrator may, in his discretion, award reasonable attorneys’ fees to the prevailing party. Other costs of the arbitration, including the cost
of any record or transcripts of the arbitration, AAA’s administrative fees, the fee of the arbitrator, and all other fees and costs, shall be borne by the Company. This Section 9 is intended to be the exclusive method for resolving any and
all claims by the parties against each other for payment of damages under this Agreement or relating to Executive’s employment; provided, however, that neither this Agreement nor the submission to arbitration shall limit the parties’ right
to seek provisional relief, including without limitation 

  

 17 

 
injunctive relief, in any court of competent jurisdiction pursuant to California Code of Civil Procedure § 1281.8 or any similar statute of an
applicable jurisdiction. Seeking any such relief shall not be deemed to be a waiver of such party’s right to compel arbitration. Both Executive and the Company expressly waive their right to a jury trial. 
 10. General Relationship. Executive shall be considered an employee of the Company within the meaning of all federal, state and local laws and
regulations including, but not limited to, laws and regulations governing unemployment insurance, workers’ compensation, industrial accident, labor and taxes. 
  

 18 

 11. Miscellaneous. 
 (a) Modification; Prior Claims. This Agreement sets forth the entire understanding of the parties with respect to the subject matter hereof, supersedes all existing agreements between them concerning such
subject matter, and may be modified only by a written instrument duly executed by each party. 
 (b) Assignment; Assumption by
Successor. The rights of the Company under this Agreement may, without the consent of Executive, be assigned by the Company, in its sole and unfettered discretion, to any person, firm, corporation or other business entity which at any time,
whether by purchase, merger or otherwise, directly or indirectly, acquires all or substantially all of the assets or business of the Company. The Company will require any successor (whether direct or indirect, by purchase, merger or otherwise) to
all or substantially all of the business or assets of the Company expressly to assume and to agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken
place; provided, however, that no such assumption shall relieve the Company of its obligations hereunder. As used in this Agreement, the “Company” shall mean the Company as hereinbefore defined and any successor to its
business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law or otherwise. 
 (c)
Survival. The covenants, agreements, representations and warranties contained in or made in Sections 1, 5, 6, 7, 9 and 11 of this Agreement shall survive any termination of Executive’s employment. 
 (d) Third-Party Beneficiaries. This Agreement does not create, and shall not be construed as creating, any rights enforceable by any person not a
party to this Agreement. 
 (e) Waiver. The failure of either party hereto at any time to enforce performance by the other party of
any provision of this Agreement shall in no way affect such party’s rights thereafter to enforce the same, nor shall the waiver by either party of any breach of any provision hereof be deemed to be a waiver by such party of any other breach of
the same or any other provision hereof. 
 (f) Section Headings. The headings of the several sections in this Agreement are inserted
solely for the convenience of the parties and are not a part of and are not intended to govern, limit or aid in the construction of any term or provision hereof. 
 (g) Notices. All notices, requests and other communications hereunder shall be in writing and shall be delivered by courier or other means of personal service (including by means of a nationally recognized
courier service or professional messenger service), or sent by telex or telecopy or mailed first class, postage prepaid, by certified mail, return receipt requested, in all cases, addressed to: 
  

 19 

 If to the Company or the Board: 
 Basin Water, Inc. 
 8731 Prestige Court

 Rancho Cucamonga, CA 91730 
 Attention: Chairman of the Compensation Committee 
 If to Executive: 
 Scott B. Hamilton 
 4054 Hampton Avenue

 Western Springs, IL 60558 
 All notices,
requests and other communications shall be deemed given on the date of actual receipt or delivery as evidenced by written receipt, acknowledgement or other evidence of actual receipt or delivery to the address. In case of service by telecopy, a copy
of such notice shall be personally delivered or sent by registered or certified mail, in the manner set forth above, within three business days thereafter. Any party hereto may from time to time by notice in writing served as set forth above
designate a different address or a different or additional person to which all such notices or communications thereafter are to be given. 
 (h) Severability. All Sections, clauses and covenants contained in this Agreement are severable, and in the event any of them shall be held to be invalid by any court, this Agreement shall be interpreted as if such invalid Sections,
clauses or covenants were not contained herein. 
 (i) Governing Law and Venue. This Agreement is to be governed by and construed in
accordance with the laws of the State of California applicable to contracts made and to be performed wholly within such State, and without regard to the conflicts of laws principles thereof. Except as provided in Sections 6 and 9, any suit
brought hereon shall be brought in the state or federal courts sitting in San Diego, California, the parties hereto hereby waiving any claim or defense that such forum is not convenient or proper. Each party hereby agrees that any such court shall
have in personam jurisdiction over it and consents to service of process in any manner authorized by California law. 
 (j)
Non-transferability of Interest. None of the rights of Executive to receive any form of compensation payable pursuant to this Agreement shall be assignable or transferable except through a testamentary disposition or by the laws of descent
and distribution upon the death of Executive. Any attempted assignment, transfer, conveyance, or other disposition (other than as aforesaid) of any interest in the rights of Executive to receive any form of compensation to be made by the Company
pursuant to this Agreement shall be void. 
 (k) Gender. Where the context so requires, the use of the masculine gender shall include
the feminine and/or neuter genders and the singular shall include the plural, and vice versa, and the word “person” shall include any corporation, firm, partnership or other form of association. 
  

 20 

 (l) Counterparts. This Agreement may be executed in one or more counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the same Agreement. 
 (m) Construction. The language in all
parts of this Agreement shall in all cases be construed simply, according to its fair meaning, and not strictly for or against any of the parties hereto. Without limitation, there shall be no presumption against any party on the ground that such
party was responsible for drafting this Agreement or any part thereof. 
 (n) Withholding and other Deductions. All compensation
payable to Executive hereunder shall be subject to such deductions as the Company is from time to time required to make pursuant to law, governmental regulation or order. 
 (o) Insurance; Indemnification. During the Employment Term and through at least the fifth anniversary of the Executive’s termination of employment from the Company, the Company agrees to maintain the
Executive as an insured party on all directors’ and officers’ insurance maintained by the Company for the benefit of its directors and officers on at least the same basis as all other covered individuals and to indemnify the Executive to
the maximum extent permitted under applicable law. 
 (p) Section 409A of the Code. This Agreement shall be interpreted,
construed and administered in a manner that satisfies the requirements of Section 409A of the Code. Notwithstanding any provision of this Agreement to the contrary, the Company may adopt such amendments to this Agreement or adopt other policies
and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Company determines are necessary to comply with the requirements of Section 409A of the Code. 
 (Signature Page Follows) 
  

 21 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth above.

  

			
	BASIN WATER, INC.
		
	By:	 	 /s/ Michael M. Stark

	Name:	 	Michael M. Stark
	Title:	 	President and Chief Operating Officer
	
	 /s/ Scott B. Hamilton

	Scott B. Hamilton

  

 [SIGNATURE PAGE TO EMPLOYMENT AGREEMENT] 

 EXHIBIT A 
 RELEASE 
 (INDIVIDUAL TERMINATION)

 Certain capitalized terms used in this Release are defined in the Employment Agreement (the “Agreement”) which I have
executed and of which this Release is a part. 
 I hereby confirm my obligations under Section 6 of the Agreement. 
 I acknowledge that I have read and understand Section 1542 of the California Civil Code which reads as follows: “A general release does not
extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.” I hereby
expressly waive and relinquish all rights and benefits under that section and any law of any jurisdiction of similar effect with respect to my release of any claims I may have against the Company. 
 Except as otherwise set forth in this Release, I hereby release, acquit and forever discharge the Company, its parents and subsidiaries, and their
officers, directors, agents, servants, employees, shareholders, successors, assigns and affiliates, of and from any and all claims, liabilities, demands, causes of action, costs, expenses, attorneys fees, damages, indemnities and obligations of
every kind and nature, in law, equity, or otherwise, known and unknown, suspected and unsuspected, disclosed and undisclosed (other than any claim for indemnification I may have as a result of any third party action against me based on my employment
with the Company), arising out of or in any way related to agreements, events, acts or conduct at any time prior to the date I execute this Release, including, but not limited to: all such claims and demands directly or indirectly arising out of or
in any way connected with my employment with the Company or the termination of that employment, including but not limited to, claims of intentional and negligent infliction of emotional distress, any and all tort claims for personal injury, claims
or demands related to salary, bonuses, commissions, stock, stock options, or any other ownership interests in the Company, vacation pay, fringe benefits, expense reimbursements, severance pay, or any other form of disputed compensation; claims
pursuant to any federal, state or local law or cause of action including, but not limited to, the federal Civil Rights Act of 1964, as amended; the federal Age Discrimination in Employment Act of 1967, as amended (“ADEA”); the
federal Employee Retirement Income Security Act of 1974, as amended (“ERISA”), other than claims for benefits under the Company’s “employee benefit plans” (as defined in Section 3(3) of ERISA); the federal
Americans with Disabilities Act of 1990; the California Fair Employment and Housing Act, as amended; tort law; contract law; statutory law; common law; wrongful discharge; discrimination; fraud; defamation; emotional distress; and breach of the
implied covenant of good faith and fair dealing; provided, however, that nothing in this paragraph shall be construed in any way to release the Company from its obligation to indemnify me pursuant to the Company’s indemnification
obligation pursuant to agreement or applicable law. 
  

 1 

 I acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have under ADEA.
I also acknowledge that the consideration given under the Agreement for the waiver and release in the preceding paragraph hereof is in addition to anything of value to which I was already entitled. I further acknowledge that I have been advised by
this writing, as required by the ADEA, that: (A) my waiver and release do not apply to any rights or claims that may arise on or after the date I execute this Release; (B) I have the right to consult with an attorney prior to executing
this Release; (C) I have twenty-one (21) days to consider this Release (although I may choose to voluntarily execute this Release earlier); (D) I have seven (7) days following the execution of this Release by the parties to
revoke the Release; and (E) this Release shall not be effective until the date upon which the revocation period has expired, which shall be the eighth day after this Release is executed by me. 
  

			
	 SCOTT B. HAMILTON

	
	  

		
	 Date:
	 	  

  

 2 

 EXHIBIT B 
 RELEASE 
 (GROUP TERMINATION) 
 Certain capitalized terms used in this Release are defined in the Employment Agreement (the “Agreement”) which I have executed and of
which this Release is a part. 
 I hereby confirm my obligations under Section 6 of the Agreement. 
 I acknowledge that I have read and understand Section 1542 of the California Civil Code which reads as follows: “A general release does not
extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.” I hereby
expressly waive and relinquish all rights and benefits under that section and any law of any jurisdiction of similar effect with respect to my release of any claims I may have against the Company. 
 Except as otherwise set forth in this Release, I hereby release, acquit and forever discharge the Company, its parents and subsidiaries, and their
officers, directors, agents, servants, employees, shareholders, successors, assigns and affiliates, of and from any and all claims, liabilities, demands, causes of action, costs, expenses, attorneys fees, damages, indemnities and obligations of
every kind and nature, in law, equity, or otherwise, known and unknown, suspected and unsuspected, disclosed and undisclosed (other than any claim for indemnification I may have as a result of any third party action against me based on my employment
with the Company), arising out of or in any way related to agreements, events, acts or conduct at any time prior to the date I execute this Release, including, but not limited to: all such claims and demands directly or indirectly arising out of or
in any way connected with my employment with the Company or the termination of that employment, including but not limited to, claims of intentional and negligent infliction of emotional distress, any and all tort claims for personal injury, claims
or demands related to salary, bonuses, commissions, stock, stock options, or any other ownership interests in the Company, vacation pay, fringe benefits, expense reimbursements, severance pay, or any other form of disputed compensation; claims
pursuant to any federal, state or local law or cause of action including, but not limited to, the federal Civil Rights Act of 1964, as amended; the federal Age Discrimination in Employment Act of 1967, as amended (“ADEA”); the
federal Employee Retirement Income Security Act of 1974, as amended (“ERISA”), other than claims for benefits under the Company’s “employee benefit plans” (as defined in Section 3(3) of ERISA); the federal
Americans with Disabilities Act of 1990; the California Fair Employment and Housing Act, as amended; tort law; contract law; statutory law; common law; wrongful discharge; discrimination; fraud; defamation; emotional distress; and breach of the
implied covenant of good faith and fair dealing; provided, however, that nothing in this paragraph shall be construed in any way to release the Company from its obligation to indemnify me pursuant to the Company’s indemnification
obligation pursuant to agreement or applicable law. 

 I acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have under ADEA.
I also acknowledge that the consideration given under the Agreement for the waiver and release in the preceding paragraph hereof is in addition to anything of value to which I was already entitled. I further acknowledge that I have been advised by
this writing, as required by the ADEA, that: (A) my waiver and release do not apply to any rights or claims that may arise on or after the date I execute this Release; (B) I have the right to consult with an attorney prior to executing
this Release; (C) I have forty-five (45) days to consider this Release (although I may choose to voluntarily execute this Release earlier); (D) I have seven (7) days following the execution of this Release by the parties to
revoke the Release; (E) this Release shall not be effective until the date upon which the revocation period has expired, which shall be the eighth day after this Release is executed by me; and (F) I have received with this Release a
detailed list of the job titles and ages of all employees who were terminated in this group termination and the ages of all employees of the Company in the same job classification or organizational unit who were not terminated. 
  

			
	SCOTT B. HAMILTON
	
	  

		
	Date:	 	  

  

 2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00126-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00126-of-00352.parquet"}]]