Document:

Form of Employment Agreement with Mr. Meruelo

 Exhibit 10.7 
  
 EXECUTIVE EMPLOYMENT AGREEMENT 
  
 This Executive Employment Agreement (“Agreement”) is made effective as of
                , 2007 (“Effective Date”), by and among Meruelo Maddux Properties, Inc., a Delaware corporation (“Company”), Meruelo Maddux
Properties, L.P. (“Partnership”) and Richard Meruelo (“Executive”) to reaffirm and amend the terms and conditions of employment. 
  
 The parties agree as follows: 
  
 1. Employment. Employer (as defined below) hereby employs Executive, and Executive hereby accepts such employment, upon the terms and conditions
set forth herein. 
  
 2. Duties. 
  
 2.1 Position. Executive is employed on a full-time basis as Chief
Executive Officer, shall report directly to the Board of Directors of the Company (the “Board”), and shall have the duties and responsibilities commensurate with such position as shall be reasonably and in good faith determined from
time to time by the Board, including such duties and responsibilities with respect to the Company, the Partnership and/or a subsidiary of either (collectively, “Employer”). Subject to shareholder approval, Executive shall also serve as the
Chairman of the Board. 
  
 2.2 Duties. Executive shall:
(i) abide by all applicable federal, state and local laws, regulations and ordinances, and (ii) except for vacation and illness periods, devote substantially all of his business time, energy, skill and efforts to the performance of his
duties hereunder in a manner that will faithfully and diligently further the business interests of the Employer; provided, that, notwithstanding the foregoing, Executive may (x) make and manage personal business investments of his choice,
including those described on Schedule A, (y) serve as a director or in any other capacity of any business enterprise, including an enterprise whose activities may involve or relate to the business of the Employer, provided that such
service either is expressly approved by the Board or relates to one or more of the real estate projects or other matters disclosed on the Schedule A attached hereto, and (z) serve in any capacity with any civic, educational,
religious or charitable organization, or any governmental entity or trade association. In addition, during the Term of Employment, subject to the rules and requirements of the charter of the nominating and corporate governance committee of the
Board, the Company shall cause Executive to be nominated as a member of the Board. Executive agrees to serve as a member of the Board. 
  
 3. Term of Employment. The term of Executive’s employment with Employer under this Agreement shall commence on the Effective Date and shall
continue until and including the three-year anniversary of the Effective Date, unless earlier terminated as herein provided (the “Initial Term”). The Initial Term shall be automatically renewed for successive one-year periods (each an
“Extended Term”) unless either party gives notice of non-renewal at least sixty (60) days prior to the end of the Initial Term or any Extended Term. As used herein, “Term of Employment” shall include the Initial Term and any
Extended Term, but the Term of Employment shall end upon any termination of Executive’s employment with Employer as herein provided. 
  
  

 4. Compensation. 
  
 4.1 Base Salary. As compensation for Executive’s performance of Executive’s duties to the Company, Employer
shall pay to Executive a base salary of $450,000 per year (“Base Salary”), payable in accordance with the normal payroll practices of Employer, less all legally required or authorized payroll deductions and tax withholdings. Base Salary
shall be reviewed annually, and may be increased, at the sole discretion of the Board’s compensation committee, in light of the Executive’s performance and the Employer’s financial performance and other economic conditions and
relevant factors. 
  
 4.2 LTIP Units and Other Equity
Awards. 
  
 (a) On or before December 31st of each year
during the Term of Employment, the Employer shall cause to be granted to Executive at least 10,000 long-term incentive plan units (“LTIP Units”) in consideration of services to be performed by Executive for the Partnership in his capacity
as a partner thereof, and such LTIP Units shall be evidenced by, and subject to, the LTIP Unit award agreement attached to this Agreement as Exhibit A and the Company’s 2007 Equity Incentive Plan (a copy of which has been delivered to
Executive), which award agreement shall reference that the LTIP Units are “Safe Harbor Interests” under Internal Revenue Service Notice 2005-43, as provided in the agreement of limited partnership of Meruelo Maddux Properties, L.P. and for
which LTIP Units a Section 83(b) election shall be made timely by Executive showing a zero liquidation value. In addition, as part of the consideration for employment, Executive shall be eligible to receive additional awards of LTIP Units and
other equity awards, subject to the terms and conditions of the Company’s 2007 Equity Incentive Plan (or plan for a subsequent year) and the applicable award agreement. 
  
 (b) Any LTIP Units granted to the Executive during the term of this Agreement shall be deemed to have been granted to the
Executive in consideration of services rendered or to be rendered in Executive’s capacity as a partner of the Partnership. 
  
 (c) The Company and the Partnership shall (and shall cause each subsidiary that is a component Employer to) allocate the services provided by Executive
to each component Employer and compensate Executive from the respective component Employer on a basis proportionate to the services provided by Executive to each component Employer. The provision of services to one component Employer shall satisfy
any time commitment of the Executive to Employer for purposes of determining whether Executive has discharged his obligations to Employer under this or any other employment agreement with Employer. The parties confirm that Employer shall (and
intends to) require that a sufficient amount of services be provided hereunder to the Partnership by Executive in his capacity as a partner of the Partnership to constitute full and adequate consideration for the issuance of LTIP Units to Executive
as provided in the limited partnership agreement governing the Partnership, as may be amended from time to time. 
  
 4.3 Bonus. Executive shall be paid by Company on or before December 31st of each year during the Term of Employment a minimum cash bonus equal
to fifty percent (50%) of Executive’s Base Salary. In addition, at the sole discretion of the Board’s compensation committee, Executive may be paid an additional bonus relating to each calendar year during the Term of Employment, and
such additional bonus, if any, shall be paid on or before March 1st of the following year. 
  

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 5. Customary Fringe Benefits. Executive shall be eligible for all customary and usual fringe
benefits generally available to full-time employees of Employer, subject to the terms and conditions of Employer’s policies and benefit plan documents. Employer reserves the right to change or eliminate the fringe benefits on a prospective
basis, at any time, effective upon notice to Executive. Notwithstanding the standard vacation policy provisions on vacation accrual rates, Executive shall be entitled to earn vacation at the rate of four weeks per year. Furthermore, during the Term
of Employment, Executive shall be entitled to an allowance in the amount of $20,000 per calendar year to cover Executive’s use of an automobile for business purposes. 
  
 6. Business Expenses. Executive shall be reimbursed for all reasonable,
out-of-pocket business expenses incurred in the performance of Executive’s duties on behalf of Employer. To obtain reimbursement, expenses must be submitted promptly with appropriate supporting documentation in accordance with Employer’s
policies. All such expenses shall be reimbursed within the same fiscal year in which they were incurred or within two and one-half (2 1/2) months after the end of such year. 
  
 7. Termination of Employment. Subject to the terms and conditions of this Section 7, either Employer or Executive may terminate Executive’s employment with Employer at any time, with or without Cause
(as defined in Section 7.10), during the Term of Employment. Any termination of Executive’s employment during the Term of Employment shall be communicated by written notice of termination from the terminating party to the other party
(“Notice of Termination”). The Notice of Termination shall indicate the specific provision(s) of this Agreement relied upon in effecting the termination and a written statement of the reason(s) for the termination. In the case of a Notice
of Termination provided by Executive to Employer, such Notice of Termination shall not be effective for a period of sixty (60) days after receipt of such Notice of Termination by Employer. In the case of a Notice of Termination provided by
Employer to Executive, such Notice of Termination shall be effective on the date designated by Employer in the Notice of Termination. In the event Executive’s employment is terminated by either party, for any reason, during the Term of
Employment, Employer shall pay the prorated Base Salary earned as of the date of Executive’s termination of employment and the accrued but unused vacation as of the date of Executive’s termination of employment to Executive upon
Executive’s termination of employment. Except as otherwise provided in this Section 7, Employer shall have no further obligation to make or provide to Executive, and Executive shall have no further right to receive or obtain from Employer,
any payments or benefits in respect of the termination of Executive’s employment with Employer during the Term of Employment. 
  
 7.1 Severance Upon Involuntary Termination without Cause. In the event that Employer causes to occur an involuntary termination without Cause (as
defined in Section 7.10) of Executive’s employment with Employer during the Term of Employment and such involuntary termination qualifies as a “Separation from Service” under Section 409A (as hereinafter defined), Executive
shall be entitled to a “Severance Package” that consists of the following : (a) a single cash lump-sum “Severance Payment” equal to three times the sum of (x) Executive’s annual rate of Base Salary in effect immediately
prior to Executive’s termination of employment, and (y) the greater of (i) the bonus actually paid to Executive for the most recently completed fiscal year, and (ii) the minimum bonus that would have been paid to Executive for
the entire fiscal year in which the termination occurs; (b) Employer’s direct-to-insurer payment of any group health premiums that Executive would otherwise have been required to pay for a period of eighteen (18) months (subject to
Executive’s eligibility for, and proper and timely election of continued group health benefits under the Consolidated Omnibus Budget and Reconciliation Act (“COBRA”)); and (c) immediate vesting of all outstanding LTIP 

  

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Units (which shall, in accordance with the applicable award agreement, remain subject to achieving parity with common units of limited partnership interest
in the Partnership), stock options, restricted stock, and other equity awards granted to Executive under any of Employer’s equity incentive plans; provided, however, that all of the following conditions are first satisfied:
(a) Executive reaffirms Executive’s commitment to comply with all surviving provisions of this Agreement, including Section 9 and Section 10 hereof; and (b) Executive executes a Separation Agreement that includes a general
release in favor of Employer and its parent, and all subsidiary and related entities, and their officers, directors, shareholders, employees and agents to the fullest extent permitted by law, drafted by and in a form reasonably satisfactory to
Employer, and does not revoke the general release within any legally required revocation period, if applicable. All legally required and authorized deductions and tax withholdings shall be made from the Severance Payment, including for wage
garnishments, if applicable, to the extent required or permitted by law. Effective immediately upon termination of employment, Executive shall no longer be eligible to contribute to or to be an active participant in any retirement or benefit plan
covering employees of Employer. All other Employer obligations to Executive shall be automatically terminated and completely extinguished. 
  
 7.2 Severance Upon Resignation for Good Reason. In the event that Executive resigns from employment with Employer for Good Reason (as defined in
Section 7.10) during the Term of Employment and such resignation qualifies as a “Separation from Service” under Section 409A, Executive shall be entitled to a “Severance Package” that consists of the following : (a) a
single cash lump-sum “Severance Payment” equal to three times the sum of (x) Executive’s annual rate of Base Salary in effect immediately prior to Executive’s termination of employment, and (y) an amount equal to the
bonus actually paid to Executive for the most recently completed fiscal year, (b) Employer’s direct-to-insurer payment of any group health premiums that Executive would otherwise have been required to pay for a period of eighteen
(18) months (subject to Executive’s eligibility for, and proper and timely election of continued group health benefits under COBRA); and (c) immediate vesting of all outstanding LTIP Units (which shall, in accordance with the
applicable award agreement, remain subject to achieving parity with common units of limited partnership interest in the Partnership), stock options, restricted stock, and other equity awards granted to Executive under any of Employer’s equity
incentive plans; provided, however, that all of the following conditions are first satisfied: (a) Executive reaffirms Executive’s commitment to comply with all surviving provisions of this Agreement, including Section 9
and Section 10 hereof; and (b) Executive executes a Separation Agreement that includes a general release in favor of Employer and its parent, and all subsidiary and related entities, and their officers, directors, shareholders, employees
and agents to the fullest extent permitted by law, drafted by and in a form reasonably satisfactory to Employer, and does not revoke the general release within any legally required revocation period, if applicable. Notwithstanding anything to the
contrary in this Section 7.2, in the event that (i) Executive resigns from employment with Employer for Good Reason during the Term of Employment, (ii) such resignation qualifies as a “Separation from Service” under
Section 409A, and (iii) the basis for such resignation is the Company’s providing Executive with notice of non-renewal of this Agreement at any time during the Term of Employment other than during the twelve (12) month period
following the effective date of a Change in Control (as defined in Section 7.10), then the phrase “three times the sum” in this Section 7.2 shall be automatically replaced with the phrase “one times the sum” and
Executive’s Severance Payment shall be calculated accordingly. All legally required and authorized deductions and tax withholdings shall be made from the Severance Payment, including for wage garnishments, if applicable, to the extent required
or permitted by law. Effective immediately upon termination of employment, Executive shall no longer be eligible to contribute to or to be an active participant in any retirement or benefit plan covering employees of Employer. All other Employer
obligations to Executive shall be automatically terminated and completely extinguished. 
  

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 7.3 Excise Tax Gross-Up. To the extent that any payment or distribution of any type to or for
Executive by Employer, or any subsidiary or affiliate of Employer, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (including, without limitation, any accelerated vesting of stock options
or restricted stock granted by Employer) (collectively, the “Total Payments”) is or will be subject to the excise tax (“Excise Tax”) imposed under Section 4999 of the Internal Revenue Code of 1986, as amended (the
“Code”), (or any successor to such Section), Employer shall pay to Executive, at the time Executive pays any Excise Tax with respect to any of such Total Payments (which may be at the time the Employer withholds Excise Tax from any
payments or at the time he files his annual federal income tax return for a year in which Excise Tax is due or payable), an additional amount (a “Gross-Up Payment”) which is, after the imposition of all income, employment, and excise
taxes, equal to the Excise Tax on such Total Payments. The determination of whether any portion of the Total Payments is subject to an Excise Tax and, if so, the amount and time of any Gross-Up Payment pursuant to this Section 7.3 shall be made
by an independent auditor (the “Auditor”) jointly selected by Executive and Employer and paid by the Employer. If Executive and Employer cannot agree on the firm to serve as the Auditor, then each shall select one accounting firm and those
two firms shall jointly select the accounting firm to serve as the Auditor. Unless Executive agrees otherwise in writing, the Auditor shall be a nationally recognized United States public accounting firm that has not during the two years preceding
the date of its selection, acted in any way on behalf of the Employer. The parties shall cooperate with each other in connection with any proceeding or claim relating to the existence or amount of any liability for Excise Tax. All expenses relating
to any such proceeding or claim (including attorneys’ fees and other expenses incurred by Executive in connection therewith) shall be paid by Employer promptly upon demand by Executive, and any such payment shall be subject to a Gross-Up
Payment under this Section 7.3 in the event that Executive is subject to Excise Tax on it. 
  
 7.4 Section 409A Compliance. The parties intend for this Agreement either to satisfy the requirements of Section 409A or to be exempt
from the application of Section 409A, and this Agreement shall be construed and interpreted accordingly. If this Agreement either fails to satisfy the requirements of Section 409A or is not exempt from the application of Section 409A,
then the parties hereby agree to amend or to clarify this Agreement in a timely manner so that this Agreement either satisfies the requirements of Section 409A or is exempt from the application of Section 409A. 
  
 (a) Notwithstanding any provision in this Agreement to the contrary, in the
event that Executive is a “specified employee” (as defined in Section 409A), any Severance Payment, severance benefits or other amounts payable under this Agreement that would be subject to the special rule regarding payments to
“specified employees” under Section 409A(a)(2)(B) of the Code (together, “Specified Employee Payments”) shall not be paid before the expiration of a period of six months following the date of Executive’s termination of
employment (or before the date of Executive’s death, if earlier). The Specified Employee Payments to which Executive would otherwise have been entitled during the six-month period following the date of Executive’s termination of employment
shall be accumulated and paid as soon as administratively practicable following the first date of the seventh month following the date of Executive’s termination of employment. 
  
 (b) To ensure satisfaction the requirements of Section 409A(b)(3) of the Code, assets shall not be set aside, reserved
in a trust or other arrangement, or otherwise restricted for purposes of the payment of amounts payable under this Agreement. 
  

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 (c) Employer hereby informs Executive that the federal, state, local, and/or foreign tax consequences
(including without limitation those tax consequences implicated by Section 409A) of this Agreement are complex and subject to change. Executive acknowledges and understands that Executive should consult with his or her own personal tax or
financial advisor in connection with this Agreement and its tax consequences. Executive understands and agrees that Employer has no obligation and no responsibility to provide Executive with any tax or other legal advice in connection with this
Agreement and its tax consequences. Except as otherwise provided in Section 7.3 of this Agreement, Executive agrees that Executive shall bear sole and exclusive responsibility for any and all adverse federal, state, local, and/or foreign tax
consequences (including without limitation any and all tax liability under Section 409A) of this Agreement, and fully indemnifies and holds Employer harmless therefor. 
  
 7.5 Effect of Death or Disability. In the event that Executive dies or experiences a Disability (as defined in
Section 7.10) during the Term of Employment, Executive shall be entitled to payment of his unpaid prorated Base Salary earned as of the date of Executive’s death or Disability (the “Measurement Date”) and a single cash lump-sum
payment equal to the minimum bonus specified in this Agreement that otherwise would have been payable to Executive for Employer’s fiscal year in which the Measurement Date occurs multiplied by a fraction, the numerator of which is the number of
days that have elapsed between the beginning of the fiscal year in which the Measurement Date occurs and the Measurement Date and the denominator of which is the number of days in the fiscal year in which the Measurement Date occurs. All legally
required and authorized deductions and tax withholdings shall be made from the payments described in the previous sentence, including for wage garnishments, if applicable, to the extent required or permitted by law. Payment under this
Section 7.5 shall be made not more than once, if at all. 
  
 7.6 Effect of a Change in Control. In the event of, and subject to the consummation of, a Change in Control, Employer shall cause to occur the immediate vesting of all outstanding LTIP Units (which shall, in accordance with the
applicable award agreement, remain subject to achieving parity with common units of limited partnership interest in the Partnership), stock options, restricted stock, and other equity awards granted to Executive under any of Employer’s equity
incentive plans. 
  
 7.7 Employment Reference. In the event
Executive’s employment is terminated without Cause, or Executive resigns for Good Reason, Executive and Employer will negotiate in good faith to reach an agreement on a statement reflecting a benign reason for termination or resignation. This
statement will include, at minimum, positions held, date of hire, employment period and confirmation of salary history (if requested by Executive). 
  
 7.8 Ineligibility For Severance. Executive shall not be entitled to any Severance Package under this Agreement, and Section 7.3 shall not
apply to Executive, if at any time during the Term of Employment, either (a) Executive voluntarily resigns or otherwise terminates employment with Employer other than for Good Reason, or (b) Employer involuntarily terminates
Executive’s employment for any reason other than without Cause. Effective immediately upon termination of employment, Executive shall no longer be eligible to contribute to or to be an active participant in any retirement or benefit plan
covering employees of Employer. All other Employer obligations to Executive shall be automatically terminated and completely extinguished. 
  
 7.9 Taxes and Withholdings. The Employer may withhold from any amounts payable under this Agreement, including any benefits or Severance Payment,
such federal, 

  

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state or local taxes as may be required to be withheld pursuant to applicable law or regulations, which amounts shall be deemed to have been paid to
Executive. 
  
 7.10 Definitions. 
  
 (a) “Cause” shall mean the occurrence during the Term of
Employment of any of the following: (i) indictment for, formal admission to (including a plea of guilty or nolo contendere to), or conviction of a felony, a crime of moral turpitude, dishonesty, breach of trust or unethical business
conduct, or any crime involving Employer, (ii) gross negligence or willful misconduct by Executive in the performance of Executive’s duties which is likely to materially damage Employer’s financial position or reputation;
(iii) willful or knowing unauthorized dissemination by Executive of Confidential Employer Information; (iv) breach of the Non-Competition Agreement executed by Executive in accordance with that certain Contribution Agreement, dated
September 19, 2006 and subsequently amended; (v) repeated failure by Executive to perform Executive’s duties which are reasonably and in good faith requested in writing by the Board and which are not substantially cured by Executive
within ten (10) days following receipt by Executive of such written request; (vi) failure of Executive to perform any lawful directive of the Board communicated to Executive in the form of a written request from the Board and which failure
Executive does not begin to cure within ten (10) days following receipt by Executive of such written request or Executive has not substantially cured within thirty (30) days following receipt by Executive of such written request, or
(vii) material breach of this Agreement by Executive which breach has been communicated to Executive in the form of a written notice from the Board, which material breach Executive does not begin to cure within ten (10) days following
receipt by Executive of such written notice or Executive has not substantially cured within thirty (30) days following receipt by Executive of such written notice. 
  
 (b) “Change in Control” shall have the meaning ascribed to such term in the Company’s 2007 Equity Incentive
Plan, as in effect on the Effective Date. 
  
 (c)
“Disability” shall mean a medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months and which either
(i) renders Executive unable to engage in any substantial gainful activity; or (ii) results in Executive receiving income replacement benefits for a period of not less than three (3) months under any policy of long-term disability
insurance maintained by the Company for the benefit of its employees. 
  
 (d) “Good Reason” shall mean the occurrence during the Term of Employment of any of the following: (i) a material breach of this Agreement by Company which is not cured by Company within 30 days following Company’s
receipt of written notice by Executive to Company describing such alleged breach; (ii) Executive’s Base Salary, minimum bonus, or minimum bonus opportunity is reduced by Company; (iii) a reduction in Executive’s title, a material
reduction in Executive’s duties and/or responsibilities, or the assignment to Executive of any duties materially inconsistent with Executive’s position; (iv) Executive fails to be vested with the title, duties and responsibilities of
Chief Executive Officer and Chairman of the Board of the ultimate parent of Company (or its successor) following a Change in Control to which Company is a party; (v) the failure of Executive to be reelected to the Board or as Chairman of the
Board, (vi) a requirement by Company that Executive, without Executive’s consent, relocate to a location other than the Los Angeles, California metropolitan area; or (vii) Company provides Executive with notice of non-renewal of this
Agreement. 
  
 (e) “Section 409A” means
Section 409A of the Internal Revenue Code of 1986, as amended, and all applicable guidance promulgated thereunder. 
  

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 7.11 Nonduplication of Benefits. Notwithstanding any provision in this Agreement or in any other
Employer benefit plan or compensatory arrangement to the contrary, but at all times subject to Section 7.4, (a) any payments due under either Section 7.1 or Section 7.2 shall be made not more than once, if at all,
(b) payments may be due under either Section 7.1 or Section 7.2, but under no circumstances shall payments be made under both Section 7.1 and Section 7.2, (c) payment shall be made under Section 7.3 if and only if
payments are due under Section 7.1 or Section 7.2, (d) no payments made under this Agreement shall be considered compensation for purposes of any benefit plan or compensatory arrangement of Employer, and (e) Executive shall not
be entitled to severance benefits from Employer other than as contemplated under this Agreement, unless such other severance benefits offset and reduce the benefits due under this Agreement on a dollar-for-dollar basis, but not below zero.

  
 8. No Competition and No Conflict of Interest. Except
as otherwise provided in Section 2.2 of this Agreement (including the matters disclosed on the Schedule A attached hereto), during the Term of Employment, Executive must not engage in any work, paid or unpaid, that creates an actual
conflict of interest with the essential business-related interests of the Employer where such conflict would materially and substantially disrupt operations. Such work shall include, but is not limited to, directly or indirectly competing with the
Employer Business in any way, or acting as an officer, director, employee, consultant, stockholder, volunteer, lender, or agent of any business enterprise of the same nature as, or which is in direct competition with, the Employer Business or any
business in which Employer becomes engaged during the Term of Employment, as may be reasonably determined by the Board. Notwithstanding the foregoing, Executive’s investment in, or ownership of, less than five percent (5%) of the capital
stock of any business entity that competes with or could reasonably be expected to compete with the Employer Business and whose securities are traded on any national securities exchange or registered pursuant to Section 12(g) of the Securities
Exchange Act of 1934, shall not be treated as a breach of this Section 8. For purposes of this Agreement, the term “Employer Business” shall mean the acquisition, development, redevelopment, ownership, operation or financing of
commercial and residential properties in the State of California. 
  
 9. Confidentiality. During the Term of Employment, Executive has been and will continue to be given access to a wide variety of information about the Employer, its affiliates and other related businesses that the Employer considers
“Confidential Employer Information.” As a condition of continued employment, Executive agrees to abide by Employer’s business policies and directives on confidentiality and nondisclosure of “Confidential Employer
Information.” “Confidential Employer Information” shall mean all information applicable to the business of the Employer which confers or may confer a competitive advantage upon the Employer over one who does not possess the
information; and has commercial value in the business of the Employer or any other business in which the Employer engages or is preparing to engage during Executive’s employment with Employer. “Confidential Employer Information”
includes, but is not limited to, information regarding the Employer’s business plans and strategies; contracts and proposals (including leases and proposed leases); artwork, designs, drawings and specifications for development and redevelopment
projects; tenants and customers and prospective tenants and customers; suppliers and other business partners and Employer’s business arrangements and strategies with respect to them; current and future marketing or advertising campaigns;
software programs; codes, formulae or techniques; rent rolls; financial information; personnel information; and all ideas, plans, processes or information related to the current, future and proposed projects or other business of the Employer that
has not been disclosed to the public by an authorized representative of the Employer, acting within 

  

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the scope of his or her authority, whether or not such information would be enforceable as a trade secret of the Employer or enjoined or restrained by a
court or arbitrator as constituting unfair competition. “Confidential Employer information” also includes confidential information of any third party who may disclose such information to the Employer or Executive in the course of the
Employer’s business. 
  
 9.1 Nondisclosure. Executive
acknowledges that Confidential Employer Information constitutes valuable, special and unique assets of the Employer’s business and that the unauthorized disclosure of such information to competitors of the Employer, or to the general public,
will be highly detrimental to the Employer. Executive therefore agrees to hold Confidential Employer Information in strictest confidence. Except as shall occur as and to the extent that Executive performs his duties to Employer, Executive agrees not
to disclose or allow to be disclosed to any individual or entity, other than those individuals or entities authorized by the Employer, any Confidential Employer Information that Executive has or may acquire during Executive’s employment by
Employer (whether or not developed or compiled by Executive and whether or not Executive has been authorized to have access to such Confidential Employer Information). 
  
 9.2 Continuing Obligation. Executive agrees that the agreement not to disclose Confidential Employer Information will
be effective during Executive’s employment and continue even after Executive is no longer employed by Employer. Any obligation not to disclose any portion of any Confidential Employer Information will continue indefinitely unless Executive can
demonstrate that such information (a) has become public knowledge through no fault of Executive; or (b) has been developed independently without any reference to any information obtained during Executive’s employment with Employer; or
(c) must be disclosed in response to a valid order by a court or government agency or is otherwise required by law. 
  
 9.3 Return of Employer Property. On termination of employment with Employer for whatever reason, or at the request of the Employer before
termination, Executive agrees to promptly deliver to Employer all records, files, computer disks, memoranda, documents, lists and other information regarding or containing any Confidential Employer Information, including all copies, reproductions,
summaries or excerpts thereof, then in Executive’s possession or control, whether prepared by Executive or others. Executive also agrees to promptly return, on termination or the Employer’s request, any and all Employer property issued to
Executive, including but not limited to computers, cellular phones, keys and credits cards. Executive further agrees that should Executive discover any Employer property or Confidential Employer Information in Executive’s possession after the
return of such property has been requested, Executive agrees to return it promptly to Employer without retaining copies, summaries or excerpts of any kind. 
  
 9.4 No Violation of Rights of Third Parties. Executive warrants that the performance of all the terms of this Agreement does not and will not
breach any agreement to keep in confidence proprietary information, knowledge or data acquired by Executive prior to Executive’s employment with Employer. Executive agrees not to disclose to Employer, or induce Employer to use, any confidential
or proprietary information or material belonging to any previous employers or others. Executive warrants that Executive is not a party to any other agreement that will interfere with Executive’s full compliance with this Agreement. Executive
further agrees not to enter into any agreement, whether written or oral, in conflict with the provisions of this Agreement while such provisions remain effective. 
  
  

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 10. Interference with Business Relations. 
  
 10.1 Interference with Customers, Suppliers and Other Business
Partners. Executive acknowledges that Employer’s tenant and customer base and leasing and sales strategies for such tenants and customers, its suppliers and purchasing strategies for such suppliers, and its other business arrangements have
been developed through substantial effort and expense, and its nonpublic business information regarding these tenants, customers, suppliers and other business partners is confidential and constitutes trade secrets. In addition, because of
Executive’s position, Executive understands that Employer will be particularly vulnerable to significant harm from Executive’s use such information for purposes other than to further Employer’s business interests. Accordingly,
Executive agrees that during Executive’s employment with Employer, and for a period of twelve (12) months thereafter, Executive will not, either directly or indirectly, separately or in association with others, interfere with, impair,
disrupt or damage Employer’s relationship with any of the tenants, customers, suppliers or other business partners of Employer with whom Executive has had contact, or conducted business, by contacting them for the purpose of inducing or
encouraging any of them to divert or take away business from Employer. 
  
 10.2 Interference with Employer’s Employees. Executive acknowledges that the services provided by Employer’s employees are unique and special, and that Employer’s employees possess trade secrets and Confidential
Employer Information that is protected against misappropriation and unauthorized use. As such, Executive agrees that during, and for a period of twelve (12) months after, Executive’s employment with Employer, Executive will not, either
directly or indirectly, separately or in association with others, interfere with, impair, disrupt or damage Employer’s business by contacting any Employer employees for the purpose of inducing or encouraging them to discontinue their employment
with Employer. 
  
 10.3 Negative Information. During the
Term of Employment and thereafter, Executive shall not disclose confidential or negative non-public information regarding, or take any action materially detrimental to the reputation of Employer or its directors, officers, employees, investors,
shareholders or advisors and any affiliates of any of the foregoing (collectively, the “Employer Affiliates”); provided, however, that nothing contained in this Section 10.3 shall affect any legal obligation of Executive to respond to
mandatory governmental inquiries concerning the Employer Affiliates or to act in accordance with, or to establish, his rights under this Agreement. Employer likewise agrees that no one acting with the actual authority of Employer shall disclose
negative non-public information regarding, or take any action materially detrimental to the reputation of, Executive; provided, however, that nothing contained in this Section 10.3 shall affect any legal obligation of the Employer Affiliates to
respond to mandatory governmental inquiries concerning Executive or to act in accordance with, or to establish, the rights of the Employer Affiliates under this Agreement. 
  
  

 -10- 

 11. Injunctive Relief. Executive acknowledges that Executive’s breach of the covenants
contained in Sections 8 through 10 of this Agreement inclusive (collectively “Covenants”) would cause irreparable injury and continuing harm to Employer for which there will be no adequate remedy at law, and agrees that in the event
of any such breach, Employer seek temporary, preliminary and permanent injunctive relief to the fullest extent allowed by the California Arbitration Act, without the necessity of proving actual damages or posting any bond or other security.

  
 12. Agreement to Arbitrate. 
  
 12.1 Mandatory Arbitration. Any dispute or controversy arising out of
or relating to any interpretation, construction, performance, termination or breach of this Agreement, will be settled by final and binding arbitration by a single arbitrator to be held in Los Angeles County, California, in accordance with the
American Arbitration Association national rules for resolution of employment disputes then in effect, except as provided herein. The arbitrator selected shall have the authority to grant any party all remedies otherwise available by law, including
injunctions, but shall not have the power to grant any remedy that would not be available in a state or federal court. The arbitrator shall have the authority to hear and rule on dispositive motions (such as motions for summary adjudication or
summary judgment). The arbitrator shall have the powers granted by California law and the rules of the American Arbitration Association which conducts the arbitration, except as modified or limited herein. 
  
 12.2 Principles Governing Arbitration. Notwithstanding anything to the
contrary in the rules of the American Arbitration Association, the arbitration shall provide (i) for written discovery and depositions as provided in California Code of Civil Procedure Section 1283.05 and (ii) for a written decision
by the arbitrator that includes the essential findings and conclusions upon which the decision is based which shall be issued no later than thirty (30) days after a dispositive motion is heard and/or an arbitration hearing has completed. Except
in disputes where Executive asserts a claim otherwise under a state or federal statute prohibiting discrimination in employment (“a Statutory Discrimination Claim”), each side shall split equally the fees and administrative costs charged
by the arbitrator and American Arbitration Association. In disputes where Executive asserts a Statutory Discrimination Claim against Employer, Executive shall be required to pay the American Arbitration Association’s filing fee only to the
extent such filing fee does not exceed the fee to file a complaint in state or federal court. Employer shall pay the balance of the arbitrator’s fees and administrative costs. 
  
 12.3 Rules Governing Arbitration. Executive and Employer shall have the same amount of time to file any claim against
any other party as such party would have if such a claim had been filed in state or federal court. In conducting the arbitration, the arbitrator shall follow the rules of evidence of the State of California (including but not limited to all
applicable privileges), and the award of the arbitrator must follow California and/or federal law, as applicable. 
  
 12.4 Selection of Arbitrator. The arbitrator shall be selected by the mutual agreement of the parties. If the parties cannot agree on an
arbitrator, the parties shall alternately strike names from a list provided by the American Arbitration Association until only one name remains. 
  
 12.5 Arbitrator Decision. The decision of the arbitrator will be final, conclusive and binding on the parties to the arbitration. The prevailing
party in the arbitration, as determined by the arbitrator, shall be entitled to recover his or its reasonable attorneys’ fees and costs, including the costs or fees charged by the arbitrator and the American Arbitration 

  

 -11- 

 
Association. In disputes where Executive asserts a Statutory Discrimination Claim, reasonable attorneys’ fees shall be awarded by the arbitrator based
on the same standard as such fees would be awarded if the Statutory Discrimination Claim had been asserted in state or federal court. Judgment may be entered on the arbitrator’s decision in any court having jurisdiction. 
  
 13. General Provisions. 
  
 13.1 Successors and Assigns. The rights and obligations of Employer
under this Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of Employer. The Employer will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) or assignee to
all or substantially all of the business and/or assets of the Employer to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Employer would be required to perform it if no such succession or
assignment had taken place. Executive shall not be entitled to assign any of Executive’s rights or obligations under this Agreement without Employer’s written consent. 
  
 13.2 Legal Protection Clause. The Employer will defend, indemnify and hold harmless the Executive from and against
any claim or legal action taken against Executive as a direct consequence of the discharge of Executive’s duties or obedience to directions of the Employer, in accordance with California Labor Code 2802. Such protection, if applicable, includes
the cost of legal defense and judgment, if any, against Executive. 
  
 13.3 Nonexclusivity of Rights. Except as expressly provided in this Agreement, Executive is not prevented from continuing or future participation in any Employer benefit, bonus, incentive or other plans, programs, policies or
practices provided by Employer subject to the terms and conditions of such plans, programs, or practices. 
  
 13.4 Waiver. Either party’s failure to enforce any provision of this Agreement shall not in any way be construed as a waiver of any such
provision, or prevent that party thereafter from enforcing each and every other provision of this Agreement. 
  
 13.5 Attorneys’ Fees. Each side will bear its own attorneys’ fees in any dispute unless a statutory section at issue, if any, authorizes
the award of attorneys’ fees to the prevailing party, and the arbitrator awards such attorneys’ fees accordingly. 
  
 13.6 Severability. In the event any provision of this Agreement is found to be unenforceable by an arbitrator or court of competent jurisdiction,
such provision shall be deemed modified to the extent necessary to allow enforceability of the provision as so limited, it being intended that the parties shall receive the benefit contemplated herein to the fullest extent permitted by law. If a
deemed modification is not satisfactory in the judgment of such arbitrator or court, the unenforceable provision shall be deemed deleted, and the validity and enforceability of the remaining provisions shall not be affected thereby. 
  
 13.7 Interpretation; Construction. The headings set forth in this
Agreement are for convenience only and shall not be used in interpreting this Agreement. This Agreement has been drafted by legal counsel representing Employer, but Executive has participated in the negotiation of its terms. Furthermore, Executive
acknowledges that Executive has had an opportunity to review and revise the Agreement and have it reviewed by legal counsel, if desired, and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against
the drafting party shall not be employed in the interpretation of this Agreement. 
  

 -12- 

 13.8 Governing Law. This Agreement will be governed by and construed in accordance with the laws
of the State of California. Except as and to the extent that Section 12 does not properly apply, each party consents to the jurisdiction and venue of the state or federal courts in Los Angeles County, California, in any action, suit, or
proceeding arising out of or relating to this Agreement. 
  
 13.9
Notices. Any notice required or permitted by this Agreement shall be in writing and shall be delivered as follows with notice deemed given as indicated: (a) by personal delivery when delivered personally; (b) by overnight courier
upon written verification of receipt; (c) by telecopy or facsimile transmission upon acknowledgment of receipt of electronic transmission; or (d) by certified or registered mail, return receipt requested, upon verification of receipt.
Notice shall be sent to the addresses set forth below, or such other address as either party may specify in writing. 
  
 13.10 Survival. The following provisions shall survive Executive’s employment with Employer to the extent reasonably necessary to fulfill the
parties’ expectations in entering this Agreement: Sections 7 (“Termination of Employment”), 9 (“Confidentiality”), 10 (“Interference with Business Relations”) 11 (“Injunctive Relief”),
12 (“Agreement to Arbitrate”), 13 (“General Provisions”), and 14 (“Entire Agreement”). 
  
 14. Entire Agreement. This Agreement, together with the other agreements and documents governing the benefits described in this Agreement,
constitute the entire agreement among the parties relating to this subject matter hereof and supersedes all prior or simultaneous representations, discussions, negotiations, and agreements, whether written or oral. This Agreement may be amended or
modified only with the written consent of Executive and the Board of Directors of the Company. No oral waiver, amendment or modification will be effective under any circumstances whatsoever. 
  
 THE PARTIES TO THIS AGREEMENT HAVE READ THE FOREGOING AGREEMENT AND FULLY UNDERSTAND EACH AND
EVERY PROVISION CONTAINED HEREIN. WHEREFORE, THE PARTIES HAVE EXECUTED THIS AGREEMENT ON THE DATES SHOWN BELOW. 
  

							
	 	 	 	 	 	 	RICHARD MERUELO
				
	 Dated:
	 	 	 	 	 	 
	 	 	
	 	 	 	

				
	 	 	 	 	 	 	Address: _____________________________
				
	 	 	 	 	 	 	                _____________________________
				
	 	 	 	 	 	 	MERUELO MADDUX PROPERTIES, INC.
				
	 Dated:
	 	 	 	 By:
	 	 
	 	 	
	 	 	 	

				
	 	 	 	 	 	 	JOHN CHARLES MADDUX
				
	 	 	 	 	 	 	President and Chief Operating Officer

  
  

 -13- 

							
	 	 	 	 	 	 	MERUELO MADDUX PROPERTIES, L.P.
				
	 	 	 	 	 	 	 By: Meruelo Maddux Properties, Inc.,
 its sole general partner

				
	 Dated:
	 	 	 	 By:
	 	 
	 	 	
	 	 	 	

				
	 	 	 	 	 	 	John Charles Maddux
				
	 	 	 	 	 	 	President and Chief Operating Officer

  
  

 -14-1996 Stock Option Plan, as amended and restated

 Exhibit 10.3 
 TIBCO SOFTWARE INC. 
 1996 STOCK OPTION PLAN 
 (as amended and restated on December 20, 2006) 
 1. Purposes of the Plan. The purposes of this 1996 Stock Option Plan are: 
  

	 	•	 	 to attract and retain the best available personnel for positions of substantial responsibility, 

  

	 	•	 	 to provide additional incentive to Employees and Consultants, and 

  

	 	•	 	 to promote the success of the Company’s business. 

 Options granted under the Plan may be Incentive Stock Options or Nonstatutory Stock Options, as determined by the Administrator at the time of grant. In addition, the Plan provides for the grant of Rights to all
Eligible Employees to participate in a salary deferral Employee Stock Purchase Program intended to qualify as a plan under Section 423 of the Code and for the grant of Stock Awards. 
 2. Definitions. As used herein, the following definitions shall apply: 
 (a) “Administrator” means the Compensation Committee that shall be administering the Plan, in accordance with Section 4 of the Plan.

 (b) “Applicable Laws” means the requirements relating to the administration of stock option plans under U. S. state
corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any foreign country or jurisdiction where Options are, or will be,
granted under the Plan. 
 (c) “Board” means the Board of Directors of the Company. 
 (d) “Code” means the Internal Revenue Code of 1986, as amended. 
 (e) “Common Stock” means the common stock of the Company. 
 (f) “Company” means TIBCO Software Inc., a Delaware corporation, and for purposes of the Employee Stock Purchase Program shall also include any Designated Subsidiary of the Company. 

 (g) “Compensation” shall mean all base straight time gross earnings and commissions, but
exclusive of payments for overtime, shift premium, incentive compensation, incentive payments, bonuses and other compensation. 
 (h)
“Compensation Committee” means a compensation committee appointed by the Board in accordance with Section 4 of the Plan. 
 (i) “Consultant” means any person, including an advisor, engaged by the Company or a Parent or Subsidiary to render services to such entity. 
 (j) “Designated Subsidiary” shall mean any Subsidiary which has been designated by the Compensation Committee from time to time in its sole discretion as eligible to participate in the Employee Stock
Purchase Program. 
 (k) “Director” means a member of the Board. 
 (l) “Disability” means total and permanent disability as defined in Section 22(e)(3) of the Code. 
 (m) “Discretionary Options” means Incentive Stock Options and Nonstatutory Stock Options. 
 (n) “Eligible Employee” shall mean any individual who is an employee of the Company for tax purposes whose customary employment with the
Company is at least twenty (20) hours per week and more than five (5) months in any calendar year. For purposes of the Employee Stock Purchase Program, the employment relationship shall be treated as continuing intact while the individual
is on sick leave or other leave of absence approved by the Company. Where the period of leave exceeds 90 days and the individual’s right to reemployment is not guaranteed either by statute or by contract, the employment relationship shall be
deemed to have terminated on the 91st day of such leave. 
 (o) “Employee” means any person, including Officers and
Directors, employed by the Company or any Parent or Subsidiary of the Company. A Service Provider shall not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the
Company or between the Company, its Parent, any Subsidiary, or any successor. For purposes of Incentive Stock Options, no such 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 Optionee shall cease to be treated as an Incentive Stock Option and shall be
treated for tax purposes as a Nonstatutory Stock Option. Neither service as a Director nor payment of a director’s fee by the Company shall be sufficient to constitute “employment” by the Company. 
 Notwithstanding the foregoing, for purposes of the Employee Stock Purchase Program, “Employee” shall mean Eligible Employee. 
  

 2 

 (p) “Employee Stock Purchase Program” means the wage deferral program to purchase Common
Stock, intended to qualify under Section 423 of the Code, as set forth in Section 11 of the Plan. 
 (q) “Enrollment
Date” shall mean the first Trading Day of each Offering Period. 
 (r) “Exchange Act” means the Securities Exchange
Act of 1934, as amended. 
 (s) “Exercise Date” shall mean the last Trading Day of each Offering Period. 
 (t) “Fair Market Value” means, as of any date, the value of Common Stock determined as follows: 
 (i) If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq National Market
or The Nasdaq SmallCap Market of The Nasdaq Stock 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 date 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 date of determination,
as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 
 (iii) In the absence of an
established market for the Common Stock, the Fair Market Value shall be determined in good faith by the Administrator; or 
 (iv) For
purposes of the Enrollment Date of the first Offering Period under the Employee Stock Purchase Program, the Fair Market Value shall be the initial price to the public as set forth in the final prospectus included within the registration statement on
Form S-1 filed with the Securities and Exchange Commission for the initial public offering of the Company’s Common Stock (the “Registration Statement”). 
 (u) “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. 

(v) “Nonstatutory Stock Option” means an Option not intended to qualify as an Incentive Stock Option. 
 (w) “Notice of Grant” means a written or electronic notice evidencing certain terms and conditions of an individual Option grant. The
Notice of Grant is part of the Option Agreement. 
  

 3 

 (x) “Offering Periods” shall mean the periods of approximately six (6) months
during which an option granted pursuant to the Employee Stock Purchase Program may be exercised, commencing on the first Trading Day on or after February 1 and August 1 of each year and terminating on the last Trading Day in the periods
ending six months later. The duration and timing of Offering Periods may be changed pursuant to the Employee Stock Purchase Program. 
 (y)
“Offering Date” means the first day of each Offering Period of the Employee Stock Purchase Program. 
 (z)
“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. 
 (aa) “Option” means a stock option granted pursuant to the Plan. 
 (bb) “Option Agreement” means an agreement between the Company and an Optionee evidencing the terms and conditions of an individual
Option grant. The Option Agreement is subject to the terms and conditions of the Plan. 
 (cc) “Optioned Stock” means
the Common Stock subject to an Option. 
 (dd) “Optionee” means the holder of an outstanding Option or Stock Award.

 (ee) “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in
Section 424(e) of the Code. 
 (ff) “Plan” means this 1996 Stock Option Plan. 
 (gg) “Program” means the Employee Stock Purchase Program. 
 (hh) “Purchase Price” shall mean 85% of the Fair Market Value of a share of Common Stock on the Enrollment Date or on the Exercise Date, whichever is lower; provided however, that the Purchase Price
may be adjusted by the Compensation Committee pursuant to Section 14. 
 (ii) “Right” means the right to purchase
Shares pursuant to the Employee Stock Purchase Program. 
 (jj) “Rule 16b-3” means Rule 16b-3 of the Exchange Act or any
successor to Rule 16b-3, as in effect when discretion is being exercised with respect to the Plan. 
 (kk) “Section 16(b)”
means Section 16(b) of the Exchange Act. 
 (ll) “Service Provider” means an Employee or Consultant. 
  

 4 

 (mm) “Share” means a share of the Common Stock, as adjusted in accordance with
Section 13 of the Plan. 
 (nn) “Stock Award” means shares of Common Stock acquired pursuant to a grant of a Stock
Award under Section 12 below. 
 (oo) “Subsidiary” means a “subsidiary corporation”, whether now or hereafter
existing, as defined in Section 424(f) of the Code. 
 (pp) “Trading Day” shall mean a day on which national stock
exchanges and the Nasdaq System are open for trading. 
 3. Stock Subject to the Plan. Subject to the provisions
of Section 14 of the Plan, the maximum aggregate number of Shares which may be optioned and sold under the Plan is 83,322,497 Shares, plus 4,500,000 Shares (the “First Additional Shares”) approved by the Stockholders on April 11,
2002, plus an annual increase to be added on the first day of each fiscal year (beginning in 2002) equal to the lesser of (i) 60,000,000 Shares, (ii) 5% of the Company’s outstanding Shares on such date or (iii) a lesser amount
determined by the Board. The Shares may be authorized, but unissued, or reacquired Common Stock. The First Additional Shares may only be granted under the Employee Stock Purchase Program and may not be granted as Discretionary Options. 

If an Option expires or becomes unexercisable without having been exercised in full, or is surrendered pursuant to an option exchange program, the
unpurchased 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, upon exercise of an
Option, shall not be returned to the Plan and shall not become available for future distribution under the Plan, except that if unvested Shares are repurchased by the Company at their original purchase price or if unvested Shares subject to a Stock
Award are forfeited, such shares shall become available for future grant under the Plan. 
 4.
Administration of the Plan. 
 (a) Procedure. 
 (i) Multiple Administrative Bodies. The Plan may be administered by different Compensation Committees with respect to different groups of Service
Providers. 
 (ii) Section 162(m). To the extent that the Administrator determines it to be desirable to qualify Options granted
hereunder as “performance-based compensation” within the meaning of Section 162(m) of the Code, the Plan shall be administered by a Compensation 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, the transactions contemplated hereunder shall be structured to satisfy the requirements for exemption under Rule 16b-3. 
  

 5 

 (iv) Other Administration. Other than as provided above, the Plan shall be administered by the
Compensation Committee, which shall be constituted to satisfy Applicable Laws. 
 (b) Powers of the Administrator.
Subject to the provisions of the Plan the Administrator shall have the authority, in its discretion: 
 (i) to determine the Fair Market
Value; 
 (ii) to select the Service Providers to whom Options and Stock Awards may be granted hereunder; 
 (iii) to determine the number of shares of Common Stock to be covered by each Option and Stock Award granted hereunder; 
 (iv) to approve forms of agreement for use under the Plan; 
 (v) to determine the terms and conditions, not inconsistent with the terms of the Plan, of any Option and Stock Award granted hereunder. Such terms and conditions include, but are not limited to, the exercise price,
the time or times when Options may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any Option, Stock Award or the shares of Common
Stock relating thereto, based in each case on such factors as the Administrator, in its sole discretion, shall determine; 
 (vi) to
construe and interpret the terms of the Plan and awards granted pursuant to the Plan; 
 (vii) to reduce the exercise price of any Option to
the then current Fair Market Value if the Fair Market Value of the Common Stock covered by such Option has declined since the date the Option was granted; 
 (viii) to provide for the early exercise of Options for the purchase of unvested Shares, subject to such terms and conditions as the Administrator may determine; 
 (ix) to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for
the purpose of qualifying for preferred tax treatment under foreign tax laws; 
 (x) to modify or amend each Option and Stock Award (subject
to Section 16(c) of the Plan), including the discretionary authority to extend the post-termination exercisability period of Options longer than is otherwise provided for in the Plan; 
 (xi) to allow Optionees to satisfy withholding tax obligations by electing to have the Company withhold from the Shares to be issued upon exercise of an
Option or upon the 

  

 6 

 
vesting or earlier tax recognition 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 on the date that the amount of tax to be withheld is to be determined. All elections by an Optionee to have Shares withheld for this purpose shall be made in such form and under such
conditions as the Administrator may deem necessary or advisable; 
 (xii) to authorize any person to execute on behalf of the Company any
instrument required to effect the grant of an Option or Stock Award previously granted by the Administrator; 
 (xiii) to make all other
determinations deemed necessary or advisable for administering the Plan; 
 (xv) with respect to the Employee Stock Purchase Program, to
construe, interpret and apply the terms of the Employee Stock Purchase Program, to determine eligibility and to adjudicate all disputed claims filed under the Employee Stock Purchase Program. Every finding, decision and determination made by the
Compensation Committee shall, to the full extent permitted by law, be final and binding upon all parties. 
 (c)
Effect of Administrator’s Decision. The Administrator’s decisions, determinations and interpretations shall be final and binding on all Optionees and any other holders of Options and Stock Awards. 
 5. Eligibility. 
 (a) Discretionary
Stock Options and Stock Awards. Nonstatutory Stock Options and Stock Awards may be granted to Service Providers. Incentive Stock Options may be granted only to Employees. 
 (b) Employee Stock Purchase Program. Any Eligible Employee who shall be employed by the Company on or prior to an Offering Date shall be eligible
to participate in the Offering Period to which such Offering Date relates, subject to the limitations imposed by Section 423(b) of the Code. 
 6. Limitations. 
 (a) Each Option shall be designated in the Option Agreement as either an Incentive Stock Option or a
Nonstatutory Stock Option. However, notwithstanding such designation, 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 Optionee during any
calendar year (under all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such Options shall be treated as Nonstatutory Stock Options. For purposes of this Section 6(a), 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 time the Option with respect to such Shares is granted. 
  

 7 

 (b) Neither the Plan nor any Option shall confer upon an Optionee any right with respect to continuing
the Optionee’s relationship as a Service Provider with the Company, nor shall they interfere in any way with the Optionee’s right or the Company’s right to terminate such relationship at any time, with or without cause. 
 (c) The following limitations shall apply to grants of Options: 
 (i) No Service Provider shall be granted, in any fiscal year of the Company, Options to purchase more than 2,250,000 Shares. 
 (ii) In connection with his or her initial service, a Service Provider may be granted Options to purchase up to an additional 2,250,000 Shares which shall not count against the limit set forth in subsection
(i) above. 
 (iii) The foregoing limitations shall be adjusted proportionately in connection with any change in the Company’s
capitalization as described in Section 14. 
 (iv) If an Option is cancelled in the same fiscal year of the Company in which it was
granted (other than in connection with a transaction described in Section 14), the cancelled Option will be counted against the limits set forth in subsections (i) and (ii) above. For this purpose, if the exercise price of an Option
is reduced, the transaction will be treated as a cancellation of the Option and the grant of a new Option. 
 7.
Term of Plan. The Plan shall continue in effect for a term of ten (10) years from the date of obtaining stockholder approval of the Plan in May, 1999, unless terminated earlier under Section 16 of the Plan. 
 8. Term of Option. The term of each Option shall be stated in the Option Agreement. In the case of an Incentive Stock Option, the term shall be
ten (10) years from the date of grant or such shorter term as may be provided in the Option Agreement. Moreover, in the case of an Incentive Stock Option granted to an Optionee who, at the time the Incentive Stock Option is granted, owns stock
representing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Incentive Stock Option shall be five (5) years from the date of grant or such
shorter term as may be provided in the Option Agreement. 
 9. Option Exercise Price and Consideration. 
 (a) 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 
 A. granted to an Employee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the voting
power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price shall be no less than 110% of the Fair Market Value per Share on the date of grant. 
  

 8 

 B. granted to any Employee other than an Employee described in paragraph (A) immediately above, the
per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date of grant. 
 (ii) In the case of a
Nonstatutory Stock Option, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date of grant. 
 (iii) Notwithstanding the foregoing, Options may be granted with a per Share exercise price of less than 100% of the Fair Market Value per Share on the date of grant pursuant to a merger or other corporate transaction. 
 (b) Waiting Period and Exercise Dates. At the time an Option is granted, the Administrator shall fix the period within which the Option may be
exercised and shall determine any conditions which must be satisfied before the Option may be exercised. 
 (c) Form of Consideration.
The Administrator shall determine the acceptable form of consideration for exercising an Option, including the method of payment. In the case of an Incentive Stock Option, the Administrator shall determine the acceptable form of consideration at the
time of grant. Such consideration may consist entirely of: 
 (i) cash; 
 (ii) check; 
 (iii) promissory note;

 (iv) other Shares which (A) in the case of Shares acquired upon exercise of an option, have been owned by the Optionee for more than
six months on the date of surrender, and (B) 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; 
 (v) consideration received by the Company under a cashless exercise program implemented by the Company in connection with the Plan; 
 (vi) any combination of the foregoing methods of payment; or 
 (vii) such other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws. 
  

 9 

 10. Exercise of Option. 
 (a) Procedure for Exercise; Rights as a Shareholder. 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 Option Agreement. Unless the Administrator provides otherwise, vesting of Options granted hereunder shall be tolled during any unpaid leave of
absence. An Option may not be exercised for a fraction of a Share. 
 An Option shall be deemed exercised when the Company receives:
(i) written or electronic notice of exercise (in accordance with the Option Agreement) from the person entitled to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is exercised. Full payment may
consist of any consideration and method of payment authorized by the Administrator and permitted by the Option Agreement and the Plan. Shares issued upon exercise of an Option shall be issued in the name of the Optionee or, if requested by the
Optionee, in the name of the Optionee and his or her spouse. 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 shareholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such Shares promptly after the Option is exercised. No adjustment will
be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 14 of the Plan. 
 Exercising an Option in any manner shall decrease the number of Shares thereafter available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised.

 (b) Termination of Relationship as a Service Provider. If an Optionee ceases to be a Service Provider, other than upon the
Optionee’s death or Disability, the Optionee 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 on the date of termination (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 shall remain exercisable for three (3) months following the Optionee’s termination. In the
case of an Incentive Stock Option, such period of time for exercise shall not exceed three (3) months from the date of termination. If, on the date of termination, the Optionee 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, the Optionee 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. 
 Notwithstanding the above, in the event of an Optionee’s change in status from Consultant to Employee or
Employee to Consultant, an Optionee’s status as a Service Provider shall not automatically terminate solely as a result of such change in status. However, in such event, an Incentive Stock Option held by the Optionee shall cease to be treated
as an Incentive Stock Option and shall be treated for tax purposes as a Nonstatutory Stock Option three months and one day following such change of status. 
  

 10 

 (c) Disability of Optionee. If an Optionee ceases to be a Service Provider as a result of the
Optionee’s Disability, the Optionee may exercise his or her Option within such period of time as is specified in the Option Agreement to the extent the Option is vested on the date of termination (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 shall remain exercisable for twelve (12) months following the Optionee’s termination. If, on the date of
termination, the Optionee 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, the Optionee does not exercise his or her Option within the time
specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
 (d)
Death of Optionee. If an Optionee dies while a Service Provider, the Option may be exercised within such period of time as is specified in the Option Agreement (but in no event later than the expiration of the term of such Option as
set forth in the Notice of Grant), by the Optionee’s estate or by a person who acquires the right to exercise the Option by bequest or inheritance, but only to the extent that the Option is vested on the date of death. In the absence of a
specified time in the Option Agreement, the Option shall remain exercisable for twelve (12) months following the Optionee’s termination. If, at the time of death, the Optionee is not vested as to his or her entire Option, the Shares
covered by the unvested portion of the Option shall immediately revert to the Plan. The Option may be exercised by the executor or administrator of the Optionee’s estate or, if none, by the person(s) entitled to exercise the Option under the
Optionee’s will or the laws of descent or distribution. If the Option is not so exercised within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
 (e) Buyout Provisions. The Administrator may at any time offer to buy out for a payment in cash or Shares an Option previously granted based on
such terms and conditions as the Administrator shall establish and communicate to the Optionee at the time that such offer is made. 
 11.
Employee Stock Purchase Program. 
 (a) Eligibility. 
 (i) Any Employee who shall be employed by the Company on a given Enrollment Date shall be eligible to participate in the Program. 
 (ii) Any provisions of the Program to the contrary notwithstanding, no Employee shall be granted an option under the Program (i) to the extent
that, immediately after the grant, such Employee (or any other person whose stock would be attributed to such Employee pursuant to Section 424(d) of the Code) would own capital stock of the Company and/or hold outstanding options to purchase
such stock possessing five percent (5%) or more of the total combined voting power or value of all classes of the capital stock of the Company or of any Subsidiary, or (ii) to the extent that his or her rights to purchase stock under all
employee stock 

  

 11 

 
purchase plans of the Company and its subsidiaries accrues at a rate which exceeds Five Thousand Dollars ($5,000) worth of stock (determined at the fair
market value of the shares at the time such option is granted) for each calendar year in which such option is outstanding at any time. 
 (b)
Offering Periods. The Program shall be implemented by consecutive Offering Periods with a new Offering Period commencing on the first Trading Day on or after February 1 and August 1 each year, or on such other date as the
Compensation Committee shall determine, and continuing thereafter until terminated in accordance with Section 16 hereof. The Compensation Committee shall have the power to change the duration of Offering Periods (including the commencement
dates thereof) with respect to future offerings if such change is announced prior to the scheduled beginning of the first Offering Period to be affected thereafter. 
 (c) Participation. 
 (i) An Employee may become a participant in the Program by completing a
subscription agreement authorizing payroll deductions in the form provided by the Administrator for such purpose and filing it with the Company’s payroll office prior to the applicable Enrollment Date. 
 (ii) Payroll deductions for a participant shall commence on the first payroll following the Enrollment Date and shall end on the last payroll in the
Offering Period to which such authorization is applicable, unless sooner terminated by the participant as provided herein. 
 (d) Payroll
Deductions. 
 (i) At the time a participant files his or her subscription agreement, he or she shall elect to have payroll deductions
made on each pay day during the Offering Period in an amount from one percent (1%) to ten percent (10%) of the Compensation which he or she receives on each pay day during the Offering Period. 
 (ii) All payroll deductions made for a participant shall be credited to his or her account under the Program and shall be withheld in whole percentages
only. A participant may not make any additional payments into such account. 
 (iii) A participant may discontinue his or her participation
in the Program as provided herein, or may increase or decrease the rate of his or her payroll deductions during the Offering Period by completing or filing with the Company a new subscription agreement authorizing a change in payroll deduction rate.
The Compensation Committee may, in its discretion, limit the number of participation rate changes during any Offering Period. The change in rate shall be effective with the first full payroll period following five (5) business days after the
Company’s receipt of the new subscription agreement unless the Company elects to process a given change in participation more quickly. A participant’s subscription agreement shall remain in effect for successive Offering Periods unless
terminated as provided herein. 
  

 12 

 (iv) Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of the
Code and Section 11(a)(ii) hereof, a participant’s payroll deductions may be decreased to zero percent (0%) at any time during an Offering Period. Payroll deductions shall recommence at the rate provided in such participant’s
subscription agreement at the beginning of the first Offering Period which is scheduled to end in the following calendar year, unless terminated by the participant as provided herein. 
 (v) At the time the option is exercised, in whole or in part, or at the time some or all of the Company’s Common Stock issued under the Program is
disposed of, the participant must make adequate provision for the Company’s federal, state, or other tax withholding obligations, if any, which arise upon the exercise of the option or the disposition of the Common Stock. At any time, the
Company may, but shall not be obligated to, withhold from the participant’s compensation the amount necessary for the Company to meet applicable withholding obligations, including any withholding required to make available to the Company any
tax deductions or benefits attributable to sale or early disposition of Common Stock by the Employee. 
 (e) Grant of Right. On the
Enrollment Date of each Offering Period, each Employee participating in such Offering Period shall be granted an option to purchase on the Exercise Date during such Offering Period (at the applicable Purchase Price) up to a number of shares of the
Company’s Common Stock determined by dividing such Employee’s payroll deductions accumulated prior to such Exercise Date and retained in the Participant’s account as of the Exercise Date by the applicable Purchase Price; provided that
in no event shall an Employee be permitted to purchase during each Offering Period more than 3,000 shares of the Company’s Common Stock (subject to any adjustment pursuant to Section 14), and provided further that such purchase shall be
subject to the limitations set forth herein. The Compensation Committee may, for future Offering Periods, increase or decrease, in its absolute discretion, the maximum number of shares of the Company’s Common Stock an Employee may purchase
during each Offering Period. Exercise of the option shall occur as provided herein, unless the participant has withdrawn as provided herein. The option shall expire on the last day of the Offering Period. 
 (f) Exercise of Right. 
 (i) Unless a
participant withdraws from the Program as provided herein, his or her option for the purchase of shares shall be exercised automatically on the Exercise Date, and the maximum number of full shares subject to option shall be purchased for such
participant at the applicable Purchase Price with the accumulated payroll deductions in his or her account. No fractional shares shall be purchased; any payroll deductions accumulated in a participant’s account which are not sufficient to
purchase a full share shall be returned to the participant. Any other monies left over in a participant’s account after the Exercise Date shall be returned to the participant. During a participant’s lifetime, a participant’s option to
purchase shares hereunder is exercisable only by him or her. 
 (ii) If the Compensation Committee determines that, on a given Exercise
Date, the number of shares with respect to which options are to be exercised may exceed (i) the 

  

 13 

 
number of shares of Common Stock that were available for sale under the Plan on the Enrollment Date of the applicable Offering Period, or (ii) the
number of shares available for sale under the Plan on such Exercise Date, the Compensation Committee may in its sole discretion provide that the Company shall make a pro rata allocation of the shares of Common Stock available for purchase on such
Enrollment Date or Exercise Date, as applicable, in as uniform a manner as shall be practicable and as it shall determine in its sole discretion to be equitable among all participants exercising options to purchase Common Stock on such Exercise
Date. The Company may make a pro rata allocation of the shares available on the Enrollment Date of any applicable Offering Period pursuant to the preceding sentence, notwithstanding any authorization of additional shares for issuance under the
Program by the Company’s shareholders subsequent to such Enrollment Date. 
 (g) Delivery. As promptly as practicable after each
Exercise Date on which a purchase of shares occurs, the Company shall either (i) arrange the delivery to each participant, as appropriate, of a certificate representing the shares purchased upon exercise of his or her option, or
(ii) establish some other means for each participant to receive ownership of the shares, such as electronically notifying the participant of the addition of shares to his or her brokerage account. 
 (h) Withdrawal. 
 (i) A participant
may withdraw all but not less than all the payroll deductions credited to his or her account and not yet used to exercise his or her Right under the Program at any time by giving written notice to the Company in the form provided by the
Administrator for such purpose. For withdrawal to take effect during the current Offering Period, written notice must be received by the Company at least seven days (or such lesser period as is determined by the Administrator) prior to the last day
of the current Offering Period. All of the participant’s payroll deductions credited to his or her account shall be paid to such participant promptly after receipt of notice of withdrawal and such participant’s Right for the Offering
Period shall be automatically terminated, and no further payroll deductions for the purchase of shares shall be made for such Offering Period. If a participant withdraws from an Offering Period, payroll deductions shall not resume at the beginning
of the succeeding Offering Period unless the participant delivers to the Company a new subscription agreement. 
 (ii) A participant’s
withdrawal from an Offering Period shall not have any effect upon his or her eligibility to participate in other provisions of the Plan, any similar program which may hereafter be adopted by the Company or in succeeding Offering Periods which
commence after the termination of the Offering Period from which the participant withdraws. 
 (i) Termination of Employment. Upon a
participant’s ceasing to be an Employee, for any reason, he or she shall be deemed to have elected to withdraw from the Program and the payroll deductions credited to such participant’s account during the Offering Period but not yet used
to exercise the Right shall be returned to such participant or, in the case of his or her death, to the person or persons entitled thereto under Section 11(k) hereof, and such participant’s Right shall be automatically terminated. The
preceding sentence notwithstanding, a participant who receives payment in lieu of notice of termination of employment shall be treated as continuing to be an Employee for the participant’s customary number of hours per week of employment during
the period in which the participant is subject to such payment in lieu of notice. 
  

 14 

 (j) Interest. No interest shall accrue on the payroll deductions of a participant in the Program.

 (k) Designation of Beneficiary. 
 (i) A participant may file a written designation of a beneficiary who is to receive any shares and cash, if any, from the participant’s account under the Program in the event of such participant’s death
subsequent to an Exercise Date on which the Right is exercised but prior to delivery to such participant of such shares and cash. In addition, a participant may file a written designation of a beneficiary who is to receive any cash from the
participant’s account under the Program in the event of such participant’s death prior to exercise of the Right. If a participant is married and the designated beneficiary is not the spouse, spousal consent shall be required for such
designation to be effective. 
 (ii) Such designation of beneficiary may be changed by the participant at any time by written notice. In the
event of the death of a participant and in the absence of a beneficiary validly designated under the Program who is living at the time of such participant’s death, the Company shall deliver such shares and/or cash to the executor or
administrator of the estate of the participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such shares and/or cash to the spouse or to any one or more
dependents or relatives of the participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate. 
 (l) Transferability. Neither payroll deductions credited to a participant’s account nor any rights with regard to the exercise of a Right or to receive shares under the Program may be assigned,
transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution or as provided herein) by the participant. Any such attempt at assignment, transfer, pledge or other disposition shall be without
effect, except that the Company may treat such act as an election to withdraw funds from an Offering Period in accordance with subsection 11(h) hereof. 
 (m) Use of Funds. All payroll deductions received or held by the Company under the Program may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such payroll
deductions. 
 (n) Reports. Individual accounts shall be maintained for each participant in the Program. Statements of account shall
be given to participating Employees at least annually, which statements shall set forth the amounts of payroll deductions, the Purchase Price, the number of shares purchased and the remaining cash balance, if any. 
  

 15 

 (o) Amendment or Termination of the Program. 
 (i) The Compensation Committee may at any time and for any reason terminate or amend the Program. Except as provided herein, no such termination can
affect options previously granted, provided that an Offering Period may be terminated by the Compensation Committee on any Exercise Date if the Compensation Committee determines that the termination of the Offering Period or the Program is in the
best interests of the Company and its shareholders. Except as otherwise provided herein, no amendment may make any change in any option theretofore granted which adversely affects the rights of any participant. To the extent necessary to comply with
Section 423 of the Code (or any successor rule or provision or any other applicable law, regulation or stock exchange rule), the Company shall obtain shareholder approval in such a manner and to such a degree as required. 
 (ii) Without shareholder consent and without regard to whether any participant rights may be considered to have been “adversely affected,” the
Compensation Committee shall be entitled to change the Offering Periods, limit the frequency and/or number of changes in the amount withheld during an Offering Period, establish the exchange ratio applicable to amounts withheld in a currency other
than U.S. dollars, permit payroll withholding in excess of the amount designated by a participant in order to adjust for delays or mistakes in the Company’s processing of properly completed withholding elections, establish reasonable waiting
and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each participant properly correspond with amounts withheld from the participant’s Compensation, and
establish such other limitations or procedures as the Compensation Committee determines in its sole discretion advisable which are consistent with the Program. 
 (iii) In the event the Compensation Committee determines that the ongoing operation of the Program may result in unfavorable financial accounting consequences, the Compensation Committee may, in its discretion and, to
the extent necessary or desirable, modify or amend the Program to reduce or eliminate such accounting consequence including, but not limited to: 
 A. altering the Purchase Price for any Offering Period including an Offering Period underway at the time of the change in Purchase Price; 
 B. shortening any Offering Period so that Offering Period ends on a new Exercise Date, including an Offering Period underway at the time of the Compensation Committee action; and 
 C. allocating shares. 
 Such modifications or amendments
shall not require stockholder approval or the consent of any Plan or Program participants. 
  

 16 

 (p) Notices. All notices or other communications by a participant to the Company under or in
connection with the Program shall be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof. 
 12. Stock Awards. Stock Awards shall be subject to the terms, conditions, and restrictions determined by the Administrator at the time the stock
is awarded. The Administrator may require the recipient to sign a Stock Award Agreement as a condition of the award. The certificates representing the shares of Stock awarded shall bear such legends as shall be determined by the Administrator.

 13. Non-Transferability of Options, Stock Awards and Rights. Unless determined otherwise by the Administrator, an Option,
Stock Award or Right may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Optionee, only by the
Optionee. The Administrator may, in a manner established by the Administrator, provide for the transfer, without payment of consideration, of an Option or Stock Award by the Optionee to any member of the Optionee’s immediate family or to a
trust or partnership whose beneficiaries are members of the Optionee’s immediate family. In such a case, the Option shall be exercisable only by such transferee. Following transfer, any such Options and Stock Awards shall continue to be subject
to the same terms and conditions as were applicable immediately prior to the transfer. For purposes of this Section 13, an Optionee’s “immediate family” shall mean the Optionee’s spouse, lineal descendants, father, mother,
brothers and sisters. 
 14. Adjustments Upon Changes in Capitalization, Dissolution, Merger or Asset Sale.

 (a) Changes in Capitalization. Subject to any required action by the shareholders of the Company, the number of shares of Common
Stock covered by each outstanding Option, Stock Award and Right, the number of shares of Common Stock which have been authorized for issuance under the Plan but as to which no Options, Stock Awards or Rights have yet been granted or which have been
returned to the Plan upon cancellation or expiration of an Option, Stock Award or Right, as well as the price per share of Common Stock covered by each such outstanding Option, Stock Award or Right, the 60,000,000 share number in the automatic
replenishment formula of Section 3 and the 3,000 share Offering Period share purchase limit in Section 11 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 Compensation Committee, 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 Option, Stock Award or Right. 
  

 17 

 (b) Dissolution or Liquidation. 
 (i) Discretionary Options and Stock Awards. In the event of the proposed dissolution or liquidation of the Company, the Administrator shall notify
each Optionee as soon as practicable prior to the effective date of such proposed transaction. The Administrator in its discretion may provide for an Optionee to have the right to exercise his or her Option until ten (10) days prior to such
transaction as to all of the Optioned Stock covered thereby, including Shares as to which the Option would not otherwise be vested or 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 dissolution or liquidation takes place at the time and in the manner contemplated. To the extent it has not been
previously exercised, an Option will terminate immediately prior to the consummation of such proposed action. 
 (ii) Employee Stock
Purchase Program. In the event of the proposed dissolution or liquidation of the Company, the Offering Period then in progress shall be shortened by setting a new Exercise Date (the “New Exercise Date”), and shall terminate immediately
prior to the consummation of such proposed dissolution or liquidation, unless provided otherwise by the Administrator. The New Exercise Date shall be before the date of the Company’s proposed dissolution or liquidation. The Administrator shall
notify each participant in writing, at least ten (10) business days prior to the New Exercise Date, that the Exercise Date for the participant’s Right has been changed to the New Exercise Date and that the participant’s Right shall be
exercised automatically on the New Exercise Date, unless prior to such date the participant has withdrawn from the Offering Period as provided in Section 11 hereof. 
 (c) Merger or Asset Sale. 
 (i) Discretionary Options. 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 Option shall be assumed or an equivalent option substituted by the successor corporation or a Parent or Subsidiary of the successor
corporation. In the event that the successor corporation refuses to assume or substitute for the Option, the Optionee shall fully vest in and have the right to exercise the Option as to all of the Optioned Stock, including Shares as to which it
would not otherwise be vested or exercisable. If an Option 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 Optionee in writing or
electronically that the Option shall be fully vested and exercisable for a period of fifteen (15) days from the date of such notice, and the Option shall terminate upon the expiration of such period. For the purposes of this paragraph, the
Option shall be considered assumed if, following the merger or sale of assets, the option confers the right to purchase or receive, for each Share of Optioned Stock subject to the Option immediately prior to the merger or sale of assets, the
consideration (whether stock, cash, or other securities or property) received in the merger 

  

 18 

 
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
or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of the Option, for each Share of Optioned Stock subject to the Option, to be solely common stock of
the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the merger or sale of assets. 
 (ii) Employee Stock Purchase Program. In the event of a proposed sale of all or substantially all of the assets of the Company, or the merger of the Company with or into another corporation, each outstanding
Right shall be assumed or an equivalent option substituted by the successor corporation or a Parent or Subsidiary of the successor corporation. In the event that the successor corporation refuses to assume or substitute for the option, any Offering
Periods then in progress shall be shortened by setting a new Exercise Date (the “New Exercise Date”) and any Offering Periods then in progress shall end on the New Exercise Date. The New Exercise Date shall be before the date of the
Company’s proposed sale or merger. The Compensation Committee shall notify each participant in writing, at least ten (10) business days prior to the New Exercise Date, that the Exercise Date for the participant’s Right has been
changed to the New Exercise Date and that the participant’s Right shall be exercised automatically on the New Exercise Date, unless prior to such date the participant has withdrawn from the Offering Period as provided in Section 11 hereof.

 (iii) Stock Awards. 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 Stock Award shall be assumed or an equivalent award substituted by the successor corporation or a Parent or Subsidiary of the successor corporation. In the event that the successor corporation refuses to
assume or substitute for the Stock Award, the Optionee shall fully vest in the Stock Award, including Shares as to which it would not otherwise be vested. For the purposes of this paragraph, the Stock Award shall be considered assumed if, following
the merger or sale of assets, the Stock Award confers the right to receive, for each Share subject to the Stock 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 or its Parent, the Administrator may, with the consent of the successor
corporation, provide for the consideration to be received, for each Share subject to the Stock Award, to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders
of Common Stock in the merger or sale of assets. 
 15. Option and Stock Award Date of Grant. The date of grant of an Option or Stock
Award shall be, for all purposes, the date on which the Administrator makes the determination granting such Option or Stock Award, or such other later date as is determined by the Administrator. Notice of the determination shall be provided to each
Optionee within a reasonable time after the date of such grant. 
  

 19 

 16. Amendment and Termination of the Plan. 
 (a) Amendment and Termination. The Compensation Committee may at any time amend, alter, suspend or terminate the Plan. 
 (b) Shareholder Approval. The Company shall obtain shareholder approval of any Plan amendment to the extent necessary and desirable to comply with
Applicable Laws. 
 (c) Effect of Amendment or Termination. No amendment, alteration, suspension or termination of
the Plan shall impair the rights of any Optionee, unless mutually agreed otherwise between the Optionee and the Administrator, which agreement must be in writing and signed by the Optionee and the Company. Termination of the Plan shall not affect
the Administrator’s ability to exercise the powers granted to it hereunder with respect to Options and Stock Awards granted under the Plan prior to the date of such termination. 
 17. Conditions Upon Issuance of Shares. 
 (a) Legal Compliance. Shares shall not be issued pursuant to the exercise of an Option or the vesting of a Stock Award unless the exercise of such Option or vesting of such 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. 
 (b) Investment Representations. As a condition to the exercise of an Option, the Company may require the person exercising such Option to represent and warrant at the time of any such exercise that the Shares
are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required. 
 18. Inability to Obtain Authority. The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority
is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority
shall not have been obtained. 
 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. Shareholder
Approval. The Plan shall be subject to approval by the shareholders of the Company within twelve (12) months after the date the Plan is adopted. Such shareholder approval shall be obtained in the manner and to the degree required under
Applicable Laws. 
  

 20

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