Exhibit 10.1


 





APPTIGO
INTERNATIONAL, INC.


2014
STOCK INCENTIVE PLAN


 


THE 2014 STOCK INCENTIVE
PLAN (the “Plan”) of Apptigo International, Inc., a Nevada corporation, is hereby adopted by its Board of Directors
as of June 19, 2014 (the “Effective Date”).


 


Article
1.


PURPOSES
OF THE PLAN


 


Section 1.01     Purposes.
The purposes of the Plan are (a) to enhance the Company’s ability to attract and retain the services of qualified employees,
officers, directors, consultants and other service providers upon whose judgment, initiative and efforts the successful conduct
and development of the Company’s business largely depends, and (b) to provide additional incentives to such persons or entities
to devote their utmost effort and skill to the advancement and betterment of the Company, by providing them an opportunity to
participate in the ownership of the Company and thereby have an interest in the success and increased value of the Company.


 


Article
2.


DEFINITIONS


 


For purposes of
this Plan, terms not otherwise defined herein shall have the meanings indicated below:


 


Section 2.01     Administrator. “Administrator” means the Board or, if the Board delegates responsibility for any matter
to the Committee or an officer or officers of the Company, the term Administrator shall mean the Committee or the Officer or Officers,
as applicable.


 


Section 2.02      Affiliated Company. “Affiliated Company” means:


 


a)           with respect to Incentive Options, any “parent corporation” or “subsidiary corporation” of the Company,
whether now existing or hereafter created or acquired, as those terms are defined in Sections 424(e) and 424(f) of the Code, respectively;
and


 


b)           with respect to Nonqualified Options, Restricted Stock Units, Stock Appreciation Rights, and Restricted Stock Grants any
entity described in paragraph (a) of this Section 2.02 above, plus any other corporation, limited liability company (“LLC”),
partnership or joint venture, whether now existing or hereafter created or acquired, with respect to which the Company beneficially
owns more than fifty percent (50%) of: (1) the total combined voting power of all outstanding voting securities or (2) the capital
or profits interests of an LLC, partnership or joint venture.


 


Section 2.03     Base Price. “Base Price” means the price per share of Common Stock for purposes of computing the amount
payable to a Participant who holds a Stock Appreciation Right upon exercise thereof.


 


Section 2.04      Board. “Board” means the Board of Directors of the Company.


 


Section 2.05      Change in Control. “Change in Control” means:


 


a)           The acquisition, directly or indirectly, in one transaction or a series of related transactions, by any person or group
(within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended) of the beneficial ownership of securities
of the Company possessing more than fifty percent (50%) of the total combined voting power of all outstanding securities of the
Company;


 






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b)           A merger or consolidation in which the Company is not the surviving entity, except for a transaction in which the holders
of the outstanding voting securities of the Company immediately prior to such merger or consolidation hold as a result of holding
Company securities prior to such transaction, in the aggregate, securities possessing more than fifty percent (50%) of the total
combined voting power of all outstanding voting securities of the surviving entity (or the parent of the surviving entity) immediately
after such merger or consolidation;


 


c)           A reverse merger in which the Company is the surviving entity but in which the holders of the outstanding voting securities
of the Company immediately prior to such merger hold, in the aggregate, securities possessing less than fifty percent (50%) of
the total combined voting power of all outstanding voting securities of the Company or of the acquiring entity immediately after
such merger; or


 


d)           The sale, transfer or other disposition (in one transaction or a series of related transactions) of all or substantially
all of the assets of the Company, except for a transaction in which the holders of the outstanding voting securities of the Company
immediately prior to such transaction(s) receive as a distribution with respect to securities of the Company, in the aggregate,
securities possessing more than fifty percent (50%) of the total combined voting power of all outstanding voting securities of
the acquiring entity immediately after such transaction(s).


 


e)           In addition, a Change in Control will be deemed to have occurred if, at any time during any period of twelve (12) consecutive
months during the term of any Option Agreement, Restricted Stock Unit Agreement or Stock Appreciation Right Agreement under this
Plan, individuals who at the beginning of such period constituted the entire Board do not for any reason constitute a majority
of the Board, unless the election, or the nomination for election by the Company’s stockholders, of each new director was
approved by a vote of at least a majority of the directors then still in office who were directors at the beginning of the period
(but not including any new director whose election or nomination is in connection with an actual or threatened proxy contest relating
to the election of directors of the Company).


 


Notwithstanding the foregoing, a transaction
will not be deemed a Change in Control unless the transaction qualifies as a change in control event within the meaning of Section
409A of the Code.


 


Section 2.06      Code. “Code” means the Internal Revenue Code of 1986, as amended from time to time.


 


Section 2.07      Committee. “Committee” means a committee of two or more members of the Board appointed to administer the
Plan, as set forth in Section 9.01.


 


Section 2.08      Common Stock. “Common Stock” means the Common Stock of the Company, subject to adjustment pursuant to Section
4.02.


 


Section 2.09      Company. “Company” means Apptigo International, Inc., a Nevada corporation, or any entity that is a successor
to the Company. Except where the context otherwise requires, the term “Company” shall include any of
the Company’s present or future parent or subsidiary corporations


 






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Section 2.10      Disability. “Disability” means permanent and total disability as defined in Section 22(e)(3) of the Code.
The Administrator’s determination of a Disability or the absence thereof shall be conclusive and binding on all interested
parties.


 


Section 2.11       Effective Date. “Effective Date” means the date on which the Plan was originally adopted by the Board, as
set forth on the first page hereof.


 


Section 2.12       Exchange Act. “Exchange Act” means the Securities and Exchange Act of 1934, as amended.


 


Section 2.13       Exercise Price. “Exercise Price” means the purchase price per share of Common Stock payable by the Optionee
to the Company upon exercise of an Option.


 


Section 2.14       Fair Market Value. “Fair Market Value” on any given date means the value of one share of Common Stock, determined
as follows:


 


a)           If the Common Stock is then listed or admitted to trading on The NASDAQ Stock Market or another stock exchange which reports
closing sale prices, the Fair Market Value shall be the closing sale price on the date of valuation on The NASDAQ Stock Market
or principal stock exchange on which the Common Stock is then listed or admitted to trading, or, if no closing sale price is quoted
on such day, then the Fair Market Value shall be the closing sale price of the Common Stock on The NASDAQ Stock Market or such
exchange on the next preceding day on which a closing sale price is reported.


 


b)           If the Common Stock is not then listed or admitted to trading on The NASDAQ Stock Market or a stock exchange which reports
closing sale prices, the Fair Market Value shall be the average of the closing bid and asked prices of the Common Stock in the
over-the-counter market on the date of valuation.


 


c)           If neither (a) nor (b) is applicable as of the date of valuation, then the Fair Market Value shall be determined by the
Administrator in good faith using any reasonable method of evaluation in a manner consistent with the valuation principles under
Section 409A of the Code, which determination shall be conclusive and binding on all interested parties.


 


Section 2.15       FINRA Dealer. “FINRA Dealer” means a broker-dealer that is a member of the Financial Industry Regulatory
Authority.


 


Section 2.16       Incentive Option. “Incentive Option” means any Option designated and qualified as an “incentive stock
option” as defined in Section 422 of the Code.


 


Section 2.17       Incentive Option Agreement. “Incentive Option Agreement” means an Option Agreement with respect to an Incentive
Option.


 


Section 2.18      Nonqualified Option. “Nonqualified Option” means any Option that is not an Incentive Option.  To the
extent that any Option designated as an Incentive Option fails in whole or in part to qualify as an Incentive Option, including,
without limitation, for failure to meet the limitations applicable to a 10% Stockholder or because it exceeds the annual limit
provided for in Section 5.07 below, it shall to that extent constitute a Nonqualified Option.


 


Section 2.19       Nonqualified Option Agreement. “Nonqualified Option Agreement” means an Option Agreement with respect to
a Nonqualified Option.


 






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Section 2.20       Officer. “Officer” means any President, Chief Executive Officer, Chief Financial Officer, or Senior or Executive
Vice-President of the Company.


 


Section 2.21       Option. “Option” means any option to purchase Common Stock granted pursuant to this Plan.


 


Section 2.22      Option Agreement. “Option Agreement” means the written agreement entered into between the Company and the
Optionee with respect to an Option granted under this Plan.


 


Section 2.23      Optionee. “Optionee” means any Participant who holds an Option.


 


Section 2.24     Participant. “Participant” means an individual or entity that holds Options, Restricted Stock Units, Stock
Appreciation Rights, or Restricted Shares under this Plan.


 


Section 2.25     Performance Criteria. “Performance Criteria” means one or more of the following as established by the Administrator,
which may be stated as a target percentage or dollar amount, a percentage increase over a base period percentage or dollar amount
or the occurrence of a specific event or events:


 


a)           Revenue;


b)           Gross profit;


c)           Operating income;


d)           Pre-tax income;


e)           Earnings before interest, taxes, depreciation and amortization (“EBITDA”);


f)            Earnings per common share on a fully diluted basis (“EPS”);


g)           Consolidated net income of the Company
divided by the average consolidated common stockholders’ equity (“ROE”);




h) Cash and cash equivalents derived
from either (i) net cash flow from operations, or (ii) net cash flow from operations, financings and investing activities (“Cash
Flow”);


i)            Adjusted operating cash flow return on income;


j)            Cost containment or reduction;


k)           The percentage increase in the market price of the Company’s common stock over a stated period; and


l)            Individual business objectives.


 


Section 2.26      Restricted Shares. “Restricted Shares” means shares issued pursuant to the Stock Issuance Program in Article
8.


 


Section 2.27      Restricted Stock Unit. “Restricted Stock Unit” means a right to receive a share of Common Stock or an amount
equal to the Fair Market Value of one share of Common Stock, or combination thereof, issued pursuant to Article 6, subject to any
restrictions and conditions as are established pursuant to Article 6.


 


Section 2.28      Restricted Stock Unit Agreement. “Restricted Stock Unit Agreement” means the written agreement entered into
between the Company and a Participant evidencing the grant of Restricted Stock Units under the Plan.


 


Section 2.29      Service. “Service” shall mean the provision of services to the Company (or any Parent or Subsidiary) by
a person in the capacity of an employee, a non-employee member of the board of directors or a consultant or independent advisor,
except to the extent otherwise specifically provided in the documents evidencing the option grant.


 






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Section 2.30       Service Provider. “Service Provider” means a consultant or other person or entity the Administrator authorizes
to become a  Participant in the Plan and who provides services to (i) the Company, (ii) an Affiliated Company, or (iii) any
other business venture designated by the Administrator in which the Company or an Affiliated Company has a significant ownership
interest.


 


Section 2.31      Stock Appreciation Right. “Stock Appreciation Right” means a right issued pursuant to Article 7, subject
to any restrictions and conditions as are established pursuant to Article 7 that is designated as a Stock Appreciation Right.


 


Section 2.32      Stock Appreciation Right Agreement. “Stock Appreciation Right Agreement” means the written agreement entered
into between the Company and a Participant evidencing the grant of Stock Appreciation Rights under the Plan.


 


Section 2.33       Stock Issuance Program. “Stock Issuance Program” means the program to issue restricted shares pursuant to
Article 8.


 


Section 2.34      10% Stockholder. “10% Stockholder” means a person who, as of a relevant date, owns or is deemed to own (by
reason of the attribution rules applicable under Section 424(d) of the Code) stock possessing more than 10% of the total combined
voting power of all classes of stock of the Company or of an Affiliated Company.


 


Article
3.


ELIGIBILITY


 


Section 3.01      Incentive Options. Only employees of the Company or of an Affiliated Company (including members of the Board if they
are employees of the Company or of an Affiliated Company) are eligible to receive Incentive Options under the Plan.


 


Section 3.02      Nonqualified Options; Restricted Stock Units, Restricted Shares and Stock Appreciation Rights. Employees of the Company
or of an Affiliated Company, members of the Board (whether or not employed by the Company or an Affiliated Company), and Service
Providers are eligible to receive Nonqualified Options, Restricted Stock Units, Restricted Shares, and Stock Appreciation Rights
under the Plan.


 


Article
4.


PLAN
SHARES


 


Section 4.01      Shares Subject to the Plan.


 


a)           The total number of shares of Common Stock initially reserved and available for issuance under the Plan shall be 4,500,000
shares. Shares of Common Stock under the Plan may consist, in whole or in part, of authorized and unissued shares or treasury shares.


 


b)           For purposes of the limitations set forth in Section 4.01(a) above, in the event that (a) all or any portion of any Options
or Stock Appreciation Rights granted under the Plan can no longer under any circumstances be exercised, (b) any shares of Common
Stock are reacquired by the Company pursuant to an Option Agreement, or (c) all or any portion of any Restricted Stock Units granted
under the Plan are forfeited or can no longer under any circumstances vest, the shares of Common Stock allocable to or covered
by the unexercised or unvested portion of such Options, Stock Appreciation Rights or Restricted Stock Units or the shares of Common
Stock so reacquired shall again be available for grant or issuance under the Plan. The following shares of Common Stock may not
again be made available for issuance as awards under the Plan: (i) shares of Common Stock not issued or delivered as a result of
the net settlement of outstanding Stock Appreciation Rights or Options, (ii) shares of Common Stock used to pay the Exercise Price
related to outstanding Options, (iii) shares of Common Stock used to pay withholding taxes related to outstanding Options, Stock
Appreciation Rights or Restricted Stock Units, or (iv) shares of Common Stock repurchased on the open market with the proceeds
of the Option Exercise Price.


 






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Section 4.02      Changes in Capital Structure. In the event that the outstanding shares of Common Stock are hereafter increased or decreased
or changed into or exchanged for a different number or kind of shares or other securities of the Company by reason of a recapitalization,
stock split, reverse stock split, reclassification, stock dividend, or other change in the capital structure of the Company, then
appropriate adjustments shall be made by the Administrator to the aggregate number and kind of shares subject to this Plan, the
number and kind of shares and the price per share subject to or covered by outstanding Option Agreements, Restricted Stock Unit
Agreements or Stock Appreciation Right Agreements and the limit on the number of shares under Section 3.03, all in order to preserve,
as nearly as practical, but not to increase, the benefits to Participants.


 


Article
5.


OPTIONS


 


Section 5.01      Grant of Stock Options.  The Administrator shall have the right to grant pursuant to this Plan, Options subject
to such terms, restrictions and conditions as the Administrator may determine at the time of grant.  Such conditions may include,
but are not limited to, continued employment or the achievement of specified performance goals or objectives established by the
Administrator with respect to one or more Performance Criteria, which require the Administrator to certify in writing whether and
the extent to which such Performance Criteria were achieved.


 


Section 5.02      Option Agreements. Each Option granted pursuant to this Plan shall be evidenced by an Option Agreement which shall specify
the number of shares subject thereto, vesting provisions relating to such Option, the Exercise Price per share, and whether the
Option is an Incentive Option or Nonqualified Option. As soon as is practical following the grant of an Option, an Option Agreement
shall be duly executed and delivered by or on behalf of the Company to the Optionee to whom such Option was granted.  Each
Option Agreement shall be in such form and contain such additional terms and conditions, not inconsistent with the provisions of
this Plan, as the Administrator shall, from time to time, deem desirable.


 


Section 5.03      Exercise Price. The Exercise Price per share of Common Stock covered by each Option shall be determined by the Administrator,
subject to the following:  (a) the Exercise Price of an Incentive Option shall not be less than 100% of Fair Market Value
on the date the Incentive Option is granted, (b) the Exercise Price of a Nonqualified Option shall not be less than 85% of Fair
Market Value on the date the Nonqualified Option is granted, and (c) if the person to whom an Incentive Option is granted is a
10% Stockholder on the date of grant, the Exercise Price shall not be less than 110% of Fair Market Value on the date the Incentive
Option is granted. However, an Option may be granted with an Exercise Price lower than that set forth in the preceding sentence
if such Option is granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions of
Sections 409A and 424 of the Code.


 






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Section 5.04      Payment of Exercise Price. Payment of the Exercise Price shall be made upon exercise of an Option and may be made, in
the discretion of the Administrator, subject to any legal restrictions, by: (a) cash; (b) check; (c) the surrender of shares of
Common Stock owned by the Optionee (provided that shares acquired pursuant to the exercise of options granted by the Company must
have been held by the Optionee for the requisite period necessary to avoid a charge to the Company’s earnings for financial
reporting purposes), which surrendered shares shall be valued at Fair Market Value as of the date of such exercise; (d) the cancellation
of indebtedness of the Company to the Optionee; (e) the waiver of compensation due or accrued to the Optionee for services
rendered; (f) provided that a public market for the Common Stock exists, a “same day sale” commitment from the Optionee
and a FINRA Dealer whereby the Optionee irrevocably elects to exercise the Option and to sell a portion of the shares so purchased
to pay for the Exercise Price and whereby the FINRA Dealer irrevocably commits upon receipt of such shares to forward the Exercise
Price directly to the Company; (g) provided that a public market for the Common Stock exists, a “margin” commitment
from the Optionee and a FINRA Dealer whereby the Optionee irrevocably elects to exercise the Option and to pledge the shares so
purchased to the FINRA Dealer in a margin account as security for a loan from the FINRA Dealer in the amount of the Exercise Price,
and whereby the FINRA Dealer irrevocably commits upon receipt of such shares to forward the Exercise Price directly to the Company;
or (h) any combination of the foregoing methods of payment or any other consideration or method of payment as shall be permitted
by applicable law.


 


Section 5.05      Term and Termination of Options. The term and provisions for termination of each Option shall be as fixed by the Administrator,
but no Option may be exercisable more than ten (10) years after the date it is granted.  An Incentive Option granted to a
person who is a 10% Stockholder on the date of grant shall not be exercisable more than five (5) years after the date it is granted.


 


Section 5.06      Vesting and Exercise of Options. Each Option shall vest and become exercisable in one or more installments at such time
or times and subject to such conditions, including without limitation the achievement of specified performance goals or objectives
established with respect to one or more Performance Criteria, as shall be determined by the Administrator.


 


Section 5.07      Annual Limit on Incentive Options. To the extent required for “incentive stock option” treatment under Section
422 of the Code, the aggregate Fair Market Value (determined as of the time of grant) of the Common Stock with respect to which
Incentive Options granted under this Plan and any other plan of the Company or any Affiliated Company become exercisable for the
first time by an Optionee during any calendar year shall not exceed $100,000.


 


Section 5.08      Nontransferability of Options. Except as otherwise provided in this Section 5.08, Options shall not be assignable or
transferable except by will, the laws of descent and distribution or to a revocable trust, and during the life of the Optionee,
Options shall be exercisable only by the Optionee. At the discretion of the Administrator and in accordance with rules it establishes
from time to time, Optionees may be permitted to transfer some or all of their Nonqualified Options to one or more “family
members,” which is not a “prohibited transfer for value,” provided that (i) the Optionee (or such Optionee’s
estate or representative) shall remain obligated to satisfy all income or other tax withholding obligations associated with the
exercise of such Nonqualified Option; (ii) the Optionee shall notify the Company in writing that such transfer has occurred and
disclose to the Company the name and address of the “family member” or “family members” and their relationship
to the Optionee, and (iii) such transfer shall be effected pursuant to transfer documents in a form approved by the Administrator.
For purposes of the foregoing, the terms “family members” and “prohibited transfer for value” have the
meaning ascribed to them in the General Instructions to Form S-8 (or any successor form) promulgated under the Securities Act of
1933, as amended.


 






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Section 5.09       Effect of Termination of Employment.


 


a)           The following provisions shall govern the exercise of any Options held by the Optionee at the time of termination of employment,
disability, or death:


 


(1)          Should the Optionee’s employment be terminated for cause, then the Options shall terminate on the date of employment
is terminated.


 


(2)          Should the Optionee’s employment be terminated for disability, then the Optionee shall have a period of six (6) months
following the date of such termination during which to exercise each outstanding Option held by such Optionee at the time of disability.


 


(3)          If the Optionee dies while holding an outstanding Option, then the personal representative of his or her estate or the person
or persons to whom the Option is transferred pursuant to the Optionee’s will or the laws of inheritance shall have six (6)
months following the date of the Optionee’s death to exercise such Option.


 


(4)          Should Optionee’s employment be terminated by reason of his or her own voluntary termination, then the Optionee shall
have a period of thirty (30) days following the date of such voluntary termination during which to exercise each outstanding option
held by such Optionee.


 


(5)          Should Optionee’s employment be terminated by reason other than for cause, disability, death, or Optionee’s
voluntary termination, then the Optionee shall have a period of three (3) months following the date of such termination during
which to exercise each outstanding option held by such Optionee.


 


(6)          Under no circumstances, however, shall any such Option be exercisable after the specified expiration of the option term.


 


(7)          During the applicable post-Service exercise period, the Option may not be exercised in the aggregate for more than the number
of vested shares for which the Option is exercisable on the date of the Optionee’s termination of employment. Upon the expiration
of the applicable exercise period or (if earlier) upon the expiration of the Option term, the Option shall terminate and cease
to be outstanding for any vested shares for which the Option has not been exercised. However, the Option shall, immediately upon
the Optionee’s termination of employment, terminate and cease to be outstanding with respect to any and all Option shares
for which the option is not otherwise at the time exercisable or in which the Optionee is not otherwise at that time vested.


 


b)           The Administrator shall have the discretion, exercisable either at the time an Option is granted or at any time while the
Option remains outstanding, to:


 


(1)          extend the period of time for which the Option is to remain exercisable following Optionee’s termination of employment
or death from the limited period otherwise in effect for that Option to such greater period of time as the Administrator shall
deem appropriate, but in no event beyond the expiration of the Option term; and/or


 


(2)          permit the Option to be exercised, during the applicable post-termination exercise period, not only with respect to the
number of vested shares of Common Stock for which such Option is exercisable at the time of the Optionee’s termination of
employment but also with respect to one or more additional installments in which the Optionee would have vested under the Option
had the Optionee continued employment.


 






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Section 5.10      Rights as a Stockholder. An Optionee or permitted transferee of an Option shall have no rights or privileges as a stockholder
with respect to any shares covered by an Option until such Option has been duly exercised and certificates representing shares
purchased upon such exercise have been issued to such person.


 


Article
6.


RESTRICTED
STOCK UNITS


 


Section 6.01      Grants of Restricted Stock Units. The Administrator shall have the right to grant pursuant to this Plan Restricted
Stock Units subject to such terms, restrictions and conditions as the Administrator may determine at the time of grant.  Such
conditions may include, but are not limited to, continued employment or the achievement of specified performance goals or objectives
established by the Administrator with respect to one or more Performance Criteria, which require the Administrator to certify
in writing whether and the extent to which such Performance Criteria were achieved.


 


Section 6.02      Restricted Stock Unit Agreements. A Participant shall have no rights with respect to the Restricted Stock Units covered
by a Restricted Stock Unit Agreement until the Participant has executed and delivered to the Company the applicable Restricted
Stock Unit Agreement. Each Restricted Stock Unit Agreement shall be in such form, and shall set forth such other terms, conditions
and restrictions of the Restricted Stock Unit Agreement, not inconsistent with the provisions of this Plan, as the Administrator
shall, from time to time, deem desirable. Each such Restricted Stock Unit Agreement may be different from each other Restricted
Stock Unit Agreement.


 


Section 6.03     Vesting of Restricted Stock Units. The Restricted Stock Unit Agreement shall specify the date or dates, the performance
goals, if any, established by the Administrator with respect to one or more Performance Criteria that must be achieved, and any
other conditions on which the Restricted Stock Units may vest.


 


Section 6.04      Form and Timing of Settlement. Settlement in respect of vested Restricted Stock Units will be automatic upon vesting
thereof.  Payment in respect thereof will be made no later than thirty (30) days thereafter and may, in the discretion of
the Administrator, be in cash, shares of Common Stock of equivalent Fair Market Value as of the date of exercise, or a combination
of both, except as specifically provided in the Restricted Stock Unit Agreement.


 


Section 6.05      Rights as a Stockholder. Holders of Restricted Stock Units shall have no rights or privileges as a stockholder with
respect to any shares of Common Stock covered thereby unless and until they become owners of shares of Common Stock following settlement
in respect of such Restricted Stock Units, in whole or in part, in shares of Common Stock pursuant to their respective Restricted
Stock Unit Agreements and the terms and conditions of the Plan.


 


Section 6.06      Restrictions. Restricted Stock Units may not be sold, pledged or otherwise encumbered or disposed of and shall not be
assignable or transferable except by will, the laws of descent and distribution or pursuant to a domestic relations order entered
by a court in settlement of marital property rights, except as specifically provided in the Restricted Stock Unit Agreement or
as authorized by the Administrator.


 


Article
7.


STOCK
APPRECIATION RIGHTS


 


Section 7.01      Grants of Stock Appreciation Rights. The Administrator shall have the right to grant pursuant to this Plan, Stock Appreciation
Rights subject to such terms, restrictions and conditions as the Administrator may determine at the time of grant. Such conditions
may include, but are not limited to, continued employment or the achievement of specified performance goals or objectives established
by the Administrator with respect to one or more Performance Criteria, which require the Administrator to certify in writing whether
and the extent to which such Performance Criteria were achieved.


 






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Section 7.02      Stock Appreciation Right Agreements. A Participant shall have no rights with respect to the Stock Appreciation Rights
covered by a Stock Appreciation Right Agreement until the Participant has executed and delivered to the Company the applicable
Stock Appreciation Right Agreement. Each Stock Appreciation Right Agreement shall be in such form, and shall set forth the Base
Price and such other terms, conditions and restrictions of the Stock Appreciation Right Agreement, not inconsistent with the provisions
of this Plan, as the Administrator shall, from time to time, deem desirable. Each such Stock Appreciation Right Agreement may be
different from each other Stock Appreciation Right Agreement.


 


Section 7.03       Base Price. The Base Price per share of Common Stock covered by each Stock Appreciation Right shall be determined by
the Administrator and will be not less than 100% of Fair Market Value on the date the Stock Appreciation Right is granted.  However,
a Stock Appreciation Right may be granted with a Base Price lower than that set forth in the preceding sentence if such Stock Appreciation
Right is granted pursuant to an assumption or substitution for another stock appreciation right in a manner satisfying the provisions
of Section 409A of the Code.


 


Section 7.04       Term and Termination of Stock Appreciation Rights. The term and provisions for termination of each Stock Appreciation
Right shall be as fixed by the Administrator, but no Stock Appreciation Right may be exercisable more than ten (10) years after
the date it is granted.


 


Section 7.05       Vesting and Exercise of Stock Appreciation Rights. Each Stock Appreciation Right shall vest and become exercisable in
one or more installments at such time or times and subject to such conditions, including without limitation the achievement of
specified performance goals or objectives established with respect to one or more Performance Criteria, as shall be determined
by the Administrator.


 


Section 7.06       Amount, Form and Timing of Settlement. Upon exercise of a Stock Appreciation Right, the Participant who holds such Stock
Appreciation Right will be entitled to receive payment from the Company in an amount equal to the product of (a) the difference
between the Fair Market Value of a share of Common Stock on the date of exercise over the Base Price per share of Common Stock
covered by such Stock Appreciation Right and (b) the number of shares of Common Stock with respect to which such Stock Appreciation
Right is being exercised. Payment in respect thereof will be made no later than thirty (30) days after such exercise, provided
that such payment will be made in a manner such that no amount of compensation will be treated as deferred under Treasury Regulation
Section 1.409A-1(b)(5)(i)(D).  Such payment may, in the discretion of the Administrator, be in cash, shares of Common Stock
of equivalent Fair Market Value as of the date of exercise, or a combination of both, except as specifically provided in the Stock
Appreciation Right Agreement.


 


Section 7.07       Rights as a Stockholder. Holders of Stock Appreciation Rights shall have no rights or privileges as a stockholder with
respect to any shares of Common Stock covered thereby unless and until they become owners of shares of Common Stock following settlement
in respect of such Stock Appreciation Rights, in whole or in part, in shares of Common Stock pursuant to their respective Stock
Appreciation Right Agreements and the terms and conditions of the Plan.


 


Section 7.08       Restrictions. Stock Appreciation Rights may not be sold, pledged or otherwise encumbered or disposed of and shall not
be assignable or transferable except by will, the laws of descent and distribution or pursuant to a domestic relations order entered
by a court in settlement of marital property rights, except as specifically provided in the Stock Appreciation Right Agreement
or as authorized by the Administrator.


 






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Article
8.


STOCK ISSUANCE PROGRAM


 


Section 8.01       Stock Issuance Terms. Shares of Common Stock may be issued under the Stock Issuance Program through direct and immediate
issuances of Restricted Shares without any intervening option grants. Each such stock grant shall be evidenced by a Stock Issuance
Agreement which complies with the terms specified below.


 


Section 8.02       Cost of Shares.  Grants of Restricted Shares under the Stock Issuance Program shall be made at such cost as the
Administrator shall determine and may be issued for no monetary consideration, subject to applicable state law.


 


Section 8.03        Vesting Provisions.


 


a)           Restricted Shares issued under the Stock Issuance Program may, in the discretion of the Administrator, be fully and immediately
vested upon issuance or may vest in one or more installments over the Participant’s period of Service or upon attainment
of specified performance objectives.


 


b)           Any new, substituted or additional securities or other property (including money paid other than as a regular cash dividend)
which the Participant may have the right to receive with respect to the Participant’s unvested Restricted Shares by reason
of any stock dividend, stock split, recapitalization, combination of shares, exchange of shares or other change affecting the outstanding
Common Stock as a class without the Company’s receipt of consideration shall be issued subject to (i) the same vesting requirements
applicable to the Participant’s unvested Restricted Shares and (ii) such escrow arrangements as the Administrator shall deem
appropriate.


 


c)           Unless specified otherwise in the Stock Issuance Agreement, the Participant shall have full shareholder rights with respect
to any Restricted Shares issued to the Participant under the Stock Issuance Program, whether or not the Participant’s interest
in those shares is vested, and accordingly, the Participant shall have the right to vote such shares and to receive any regular
cash dividends paid on such shares.


 


d)           Should the Participant cease to remain in Service while holding one or more unvested Restricted Shares issued under the
Stock Issuance Program or should the performance objectives not be attained with respect to one or more such unvested Restricted
shares, then those shares shall be immediately surrendered to the Company for cancellation, and the Participant shall have no further
shareholder rights with respect to those shares. To the extent the surrendered shares were previously issued to the Participant
for consideration paid in cash or cash equivalent (including the Participant’s purchase-money indebtedness), the Company
shall repay to the Participant the cash consideration paid for the surrendered shares and shall cancel the unpaid principal balance
of any outstanding purchase-money note of the Participant attributable to such surrendered shares.


 


e)           The Administrator may in its discretion waive the surrender and cancellation of one or more unvested Restricted Shares (or
other assets attributable thereto) which would otherwise occur upon the non-completion of the vesting schedule applicable to such
shares. Such waiver shall result in the immediate vesting of the Participant’s interest in the Restricted Shares as to which
the waiver applies. Such waiver may be effected at any time, whether before or after the Participant’s cessation of Service
or the attainment or non-attainment of the applicable performance objectives.


 






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Section 8.04        Non-transferability. Restricted Shares granted under the Stock Issuance Program shall not be transferable until the
shares are vested.


 


Section 8.05        Share Escrow/Legends. Unvested Restricted Shares may, in the Administrator’s discretion, be held in escrow by
the Company until the Participant’s interest in such shares vests or may be issued directly to the Participant with restrictive
legends on the certificates evidencing those unvested shares.


 


Article
9.


ADMINISTRATION
OF THE PLAN


 


Section 9.01       Administrator. Authority to control and manage the operation and administration of the Plan shall be vested in the Board,
which may delegate such responsibilities in whole or in part to a committee consisting of two (2) or more members of the Board
(the “Committee”), each of whom shall meet the independence requirements under the then applicable rules, regulations
or listing requirements adopted by The NASDAQ Stock Market or the principal exchange on which the Company’s shares of Common
Stock are then listed or admitted to trading.  Members of the Committee may be appointed from time to time by, and shall serve
at the pleasure of, the Board. The Board may limit the composition of the Committee to those persons necessary to comply with the
requirements of Section 162(m) of the Code and Section 16 of the Exchange Act. In addition, the Board may authorize one or more
Officers of the Company (i) to designate the persons to be recipients of rights or options awarded pursuant to this Plan, and (ii)
to determine the number of rights or options to be received by such person; provided that the Board shall designate the maximum
number of rights or options such Officer or Officers may award, and further provided that the Board may not authorize an officer
to designate himself or herself as a recipient of the rights or options. As used herein, the term “Administrator” means
the Board or, with respect to any matter as to which responsibility has been delegated to the Committee or one or more Officers,
the term Administrator shall mean the Committee or such Officer or Officers.


 


Section 9.02       Powers of the Administrator. In addition to any other powers or authority conferred upon the Administrator elsewhere
in this Plan or by law, the Administrator shall have full power and authority:  (a) to determine the persons to whom,
and the time or times at which, Incentive Options, Nonqualified Options, Restricted Stock Units, Stock Appreciation Rights, or
Restricted Shares shall be granted, the number of shares to be represented by each Option Agreement or covered by each Restricted
Stock Unit Agreement or Stock Appreciation Right Agreement, and the Exercise Price of such Options and the Base Price of such Stock
Appreciation Rights; (b) to interpret the Plan; (c) to create, amend or rescind rules and regulations relating to the
Plan; (d) to determine the terms, conditions and restrictions contained in, and the form of, Option Agreements, Restricted
Stock Unit Agreements, Stock Appreciation Right Agreements, and Stock Issuance Agreement; (e) to determine the identity or
capacity of any persons who may be entitled to exercise a Participant’s rights under any Option Agreement, Restricted Stock
Unit Agreement, Stock Appreciation Right Agreement, or Stock Issuance Agreement under the Plan; (f) to correct any defect
or supply any omission or reconcile any inconsistency in the Plan or in any Option Agreement, Restricted Stock Unit Agreement,
Stock Appreciation Right Agreement, or Stock Issuance Agreement; (g) to accelerate the vesting of any Option, Restricted Stock
Unit, Stock Appreciation Right, or Restricted Shares; (h) to extend the expiration date of any Option Agreement, Stock
Appreciation Right Agreement, or Stock Issuance Agreement; (i) subject to Section 9.03, to amend outstanding Option Agreements,
Restricted Stock Unit Agreements, Stock Appreciation Right Agreements, or Stock Issuance Agreements to provide for, among other
things, any change or modification which the Administrator could have included in the original agreement or in furtherance of the
powers provided for herein; and (j) to make all other determinations necessary or advisable for the administration of this
Plan, but only to the extent not contrary to the express provisions of this Plan.  Any action, decision, interpretation or
determination made in good faith by the Administrator in the exercise of its authority conferred upon it under this Plan shall
be final and binding on the Company and all Participants.  Notwithstanding any term or provision in this Plan, the Administrator
shall not have the power or authority, by amendment or otherwise to extend the expiration date of an Option or Stock Appreciation
Right beyond the tenth (10th) anniversary of the date such Option or Stock Appreciation Right was granted.


 






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Section 9.03        Repricing Prohibited. Subject to Section 4.02, and except in connection with a corporate transaction involving the Company
(including, without limitation, any stock dividend, stock split, extraordinary cash dividend, recapitalization, reorganization,
merger, consolidation, split-up, spin-off, combination, or exchange of shares), neither the Committee nor the Board shall amend
the terms of outstanding awards to reduce the Exercise Price of outstanding Options or the Base Price of outstanding Stock Appreciation
Rights or cancel outstanding Options, Stock Appreciation Rights, or Restricted Shares in exchange for cash, other awards or Options
with an Exercise Price that is less than the Exercise Price of the original Options or Stock Appreciation Rights with a Base Price
that is less than the Base Price of the original Stock Appreciation Rights, without approval of the Company’s stockholders,
evidenced by a majority of votes cast at a meeting duly called and held or by written consent of shareholders holding a majority
of the voting control of the Company.


 


Section 9.0        Limitation
on Liability.  No employee of the Company or member of the Board or Committee shall be subject to any liability with
respect to duties under the Plan unless the person acts fraudulently or in bad faith.  To the extent permitted by law, the
Company shall indemnify each member of the Board or Committee, and any employee of the Company with duties under the Plan, who
was or is a party, or is threatened to be made a party, to any threatened, pending or completed proceeding, whether civil, criminal,
administrative or investigative, by reason of such person’s conduct in the performance of duties under the Plan.


 


Article
10.


CHANGE IN CONTROL


 


Section 10.01    Options and Stock Appreciation Rights. Vesting of all outstanding Options, Stock or Appreciation Rights shall accelerate
automatically effective as of immediately prior to the consummation of the Change in Control. In connection with such acceleration,
the Administrator in its discretion may provide, in connection with the Change in Control transaction, for the purchase or exchange
of each Option or Stock Appreciation Right for an amount of cash or other property having a value equal to (i) with respect to
each Option, the amount (or “spread”) by which, (x) the value of the cash or other property that the Optionee would
have received pursuant to the Change in Control transaction in exchange for the shares issuable upon exercise of the Option had
the Option been exercised immediately prior to the Change in Control, exceeds (y) the Exercise Price of the Option, and (ii) with
respect to each Stock Appreciation Right, the value of the cash or other property that the Participant would have received had
the Stock Appreciation Right been exercised immediately prior to the Change in Control. The Administrator shall have the discretion
to provide in each Option Agreement and Stock Appreciation Right Agreement other terms and conditions that relate to vesting of
such Option or Stock Appreciation Right in the event of a Change in Control. The aforementioned terms and conditions may vary in
each Option Agreement and Stock Appreciation Right Agreement, and may be different from and have precedence over the provisions
set forth in this Section 10.01.


 






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Section 10.02    Restricted Stock Units and Restricted Shares. All Restricted Stock Units and unvested Restricted Shares shall vest in
full effective as of immediately prior to the consummation of the Change in Control. Except as otherwise provided in the specific
Restricted Stock Unit Agreement or the Stock Issuance Agreement, in connection with such acceleration, the Administrator in its
discretion may provide, in connection with the Change in Control transaction, for the purchase or exchange of each Restricted Stock
Unit or Restricted Share for an amount of cash or other property having a value equal to the value of the cash or other property
that the Participant would have received had the Restricted Stock Unit or Restricted Share vested immediately prior to the Change
in Control. The Administrator shall have the discretion to provide in each Restricted Stock Unit Agreement and Stock Issuance Agreement
other terms and conditions that relate to vesting of such Restricted Stock Units and Restricted Shares in the event of a Change
in Control. The aforementioned terms and conditions may vary in each Restricted Stock Unit Agreement and Stock Issuance Agreement,
and may be different from and have precedence over the provisions set forth in this Section 10.02.


 


Article
11.


AMENDMENT AND TERMINATION OF THE PLAN


 


Section 11.01    Amendments. The Board may from time to time alter, amend, suspend or terminate this Plan in such respects as the Board
may deem advisable. No such alteration, amendment, suspension or termination shall be made which shall substantially affect or
impair the rights of any Participant under an outstanding Option Agreement, Restricted Stock Unit Agreement, Stock Appreciation
Right Agreement, or Stock Issuance Agreement without such Participant’s consent. The Board may alter or amend the Plan to
comply with requirements under the Code relating to Incentive Options or other types of options which give Optionees more favorable
tax treatment than that applicable to Options granted under this Plan as of the date of its adoption. Upon any such alteration
or amendment, any outstanding Option granted hereunder may, if the Administrator so determines and if permitted by applicable law,
be subject to the more favorable tax treatment afforded to an Optionee pursuant to such terms and conditions.


 


Section 11.02    Plan Termination. Unless this Plan shall theretofore have been terminated, the Plan shall terminate on the tenth (10th)
anniversary of the Effective Date and no Options, Restricted Stock Units, Stock Appreciation Rights, or Restricted Shares may be
granted under the Plan thereafter, but Option Agreements, Restricted Stock Unit Agreements, Stock Appreciation Right Agreements,
and Stock Issuance Agreements then outstanding shall continue in effect in accordance with their respective terms.


 


Article
12.


TAXES


 


Section 12.01    Withholding. The Company shall have the power to withhold, or require a Participant to remit to the Company, an amount
sufficient to satisfy any applicable Federal, state, and local tax withholding requirements with respect to any Options, Restricted
Stock Units, Stock Appreciation Rights, or Restricted Shares. To the extent permissible under applicable tax, securities and other
laws, the Administrator may, in its sole discretion and upon such terms and conditions as it may deem appropriate, permit a Participant
to satisfy his or her obligation to pay any such tax, in whole or in part, up to an amount determined on the basis of the highest
marginal tax rate applicable to such Participant, by (a) directing the Company to apply shares of Common Stock to which the Participant
is entitled as a result of the exercise of an Option or Stock Appreciation Right or vesting of a Restricted Stock Unit or Restricted
Share, or (b) delivering to the Company shares of Common Stock owned by the Participant. The shares of Common Stock so applied
or delivered in satisfaction of the Participant’s tax withholding obligation shall be valued at their Fair Market Value as
of the date of measurement of the amount of income subject to withholding.


 






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Section 12.02    Compliance with Section 409A of the Code. Options, Restricted Stock Units, Stock Appreciation Rights, and Restricted
Shares will be designed and operated in such a manner that they are either exempt from the application of, or comply with, the
requirements of Section 409A of the Code such that the grant, payment, settlement or deferral will not be subject to the additional
tax or interest applicable under Section 409A of the Code, except as otherwise determined in the sole discretion of the Administrator.
The Plan and each Option Agreement, Restricted Stock Unit Agreement, Stock Appreciation Right Agreement, and Stock Issuance Agreement
is intended to meet the requirements of Section 409A of the Code and will be construed and interpreted in accordance with such
intent, except as otherwise determined in the sole discretion of the Administrator. To the extent that an Option, Restricted Stock
Unit, Stock Appreciation Right, or Restricted Share, or grant, payment, settlement or deferral thereof is subject to Section 409A
of the Code such Option, Restricted Stock Unit, Stock Appreciation Right, or Restricted Share will be granted, paid, settled or
deferred in a manner that will meet the requirements of Section 409A of the Code, such that the grant, payment, settlement or deferral
thereof will not be subject to the additional tax or interest applicable under Section 409A of the Code.


 


Article
13.


MISCELLANEOUS


 


Section 13.01    Shareholder
Approval of the Plan. The Plan shall be approved by a majority of the outstanding securities entitled to vote by the later
of (i) within twelve (12) months before or after the date the Plan is adopted, or (2) prior to or within twelve (12) months of
the granting of any Incentive Options or Nonqualified Options, or the issuance of any Restricted Stock Units, Stock Appreciation
Rights, or Restricted Shares. If any Incentive Options or Nonqualified Options is exercised, or any Restricted Stock Units, Stock
Appreciation Rights, or Restricted Shares is issued before security holder approval is obtained shall be rescinded if security
holder approval is not obtained in the manner described in the preceding sentence.


 


Section 13.02    Benefits
Not Alienable. Other than as provided above, benefits under this Plan may not be assigned or alienated, whether voluntarily
or involuntarily. Any unauthorized attempt at assignment, transfer, pledge or other disposition shall be without effect.


 


Section 13.03    No
Enlargement of Employee Rights. This Plan is strictly a voluntary undertaking on the part of the Company and shall not be
deemed to constitute a contract between the Company and any Participant to be consideration for, or an inducement to, or a condition
of, the employment of any Participant. Nothing contained in the Plan shall be deemed to give the right to any Participant to be
retained as an employee of the Company or any Affiliated Company or to interfere with the right of the Company or any Affiliated
Company to discharge any Participant at any time.


 


Section 13.04    Application
of Funds. The proceeds received by the Company from the sale of Common Stock pursuant to Option Agreements, except as otherwise
provided herein, will be used for general corporate purposes.


 


 


[Shareholder approval of the Plan was obtained on June 23,
2014]


 






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