Exhibit 10.23


 


OLFACTOR
LABORATORIES, INC.


 


LONG–TERM INCENTIVE COMPENSATION PLAN


 


ARTICLE
I


PURPOSE


 


Section
1.1 Purpose. This Long-Term Incentive Compensation Plan (the “Plan”) is established by OlFactor Laboratories,
Inc. (the “Company”), a Delaware corporation, to create incentives which are designed to motivate Participants to
put forth maximum effort toward the success and growth of the Company and to enable the Company to attract and retain experienced
individuals who by their position, ability and diligence are able to make important contributions to the Company’s success
(all capitalized terms have the meanings set forth in Section 2 hereof). Toward these objectives, the Plan provides for the grant
of Options, Restricted Stock Awards, Stock Appreciation Rights (“SARs”), Performance Units and Performance Bonuses
to Eligible Employees and the grant of Nonqualified Stock Options, Restricted Stock Awards, SARs and Performance Units to Eligible
Employees, Consultants, Eligible Directors, and Affiliate Entities subject to the conditions set forth in the Plan.


 


Section
1.2 Establishment. The Plan is effective as of July 15, 2010 and for a period of ten years thereafter. The Plan shall continue
in effect until all matters relating to the payment of Awards and administration of the Plan have been settled.


 


Section
1.3 Shares Subject to the Plan. Subject to the limitations set forth in the Plan, Awards may be made under this Plan for a
total of 300 shares of the Company’s common stock, which have no par value (the “Common Stock”).


 


ARTICLE
II


DEFINITIONS


 


Section
2.1 “Account” means the recordkeeping account established by the Company to which will be credited an Award of
Performance Units to a Participant.


 


Section
2.2 “Affiliated Entity” means the Company’s parent company or any corporation, partnership, limited liability
company or other form of legal entity in which a majority of the partnership or other similar interest thereof is owned or controlled,
directly or indirectly, by the Company or one or more of its Subsidiaries or Affiliated Entities or a combination thereof. For
purposes hereof, the Company, a Subsidiary or an Affiliated Entity shall be deemed to have a majority ownership interest in a
partnership or limited liability company if the Company, such Subsidiary or Affiliated Entity shall be allocated a majority of
partnership or limited liability company gains or losses or shall be or control a managing director or a general partner of such
partnership or limited liability company.


 


Section
2.3 “Award” means, individually or collectively, any Option, Restricted Stock Award, SAR, Performance Unit or
Performance Bonus granted under the Plan to an Eligible Employee by the Board or any Nonqualified Stock Option, Performance Unit
SAR or Restricted Stock Award granted under the Plan to a Consultant or an Eligible Director by the Board pursuant to such terms,
conditions, restrictions, and/or limitations, if any, as the Board may establish by the Award Agreement or otherwise.


 




    	 



    	 



    

 


Section
2.4 “Award Agreement” means any written instrument that establishes the terms, conditions, restrictions, and/or
limitations applicable to an Award in addition to those established by this Plan and by the Board’s exercise of its administrative
powers.


 


Section
2.5 “Board” means the Board of Directors of the Company and, if the Board has appointed a Committee as provided
in Section 3.1, the term “Board” shall include such Committee.


 


Section
2.6 Intentionally deleted


 


Section
2.7 “Code” means the Internal Revenue Code of 1986, as amended. References in the Plan to any section of the Code
shall be deemed to include any amendments or successor provisions to such section and any regulations under such section.


 


Section
2.8 “Committee” means the Committee appointed by the Board as provided in Section 3.1.


 


Section
2.9 “Common Stock” means the common stock of the Company as defined in Section 1.3 herein and after substitution,
such other stock as shall be substituted therefore as provided in Article X.


 


Section
2.10 “Consultant” means any person who is engaged by the Company, a Subsidiary or an Affiliated Entity to render
consulting or advisory services.


 


Section
2.11 “Date of Grant” means the date on which the grant of an Award is authorized by the Board or such later date
as may be specified by the Board in such authorization.


 


Section
2.12 “Disability” means the Participant is unable to continue employment by reason of any 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 12 months. For purposes of this Plan, the determination of Disability shall be made in the sole and absolute discretion
of the Board.


 


Section
2.13 “Eligible Employee” means any employee of the Company, a Subsidiary, or an Affiliated Entity as approved
by the Board.


 


Section
2.14 “Eligible Director” means any member of the Board of Directors of the Company, a Subsidiary or an Affiliated
Entity as approved by the Board.


 


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


 


Section
2.16 “Fair Market Value” means (A) during such time as the Common Stock is registered under Section 12 of
the Exchange Act, the closing price of the Common Stock as reported by an established stock exchange or automated quotation
system on the day for which such value is to be determined, or, if no sale of the Common Stock shall have been made on any
such stock exchange or automated quotation system that day, on the next preceding day on which there was a sale of such
Common Stock, or (B) during any such time as the Common Stock is not listed upon an established stock exchange or automated
quotation system, the mean between dealer “bid” and “ask” prices of the Common Stock in the
over-the-counter market on the day for which such value is to be determined, as reported by the National Association of
Securities Dealers, Inc., or (C) during any such time as the Common Stock cannot be valued pursuant to (A) or (B)
above, the fair market value shall be as determined by the Board using the information that is available to it at the
time.


 






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Section
2.17 Intentionally Omitted.


 


Section
2.18 “Nonqualified Stock Option” means an Option which is not an Incentive Stock Option.


 


Section
2.19 “Option” means an Award granted under Article V of the Plan and includes Nonqualified Stock Options to purchase
shares of Common Stock.


 


Section
2.20 “Participant” means an Eligible Employee, an Eligible Consultant or an Eligible Director to whom an Award
has been granted by the Board under the Plan.


 


Section
2.21 “Performance Bonus” means the cash bonus which may be granted to Eligible Employees under Article IX of the
Plan.


 


Section
2.22 “Performance Units” means those monetary units that may be granted to Eligible Employees, Consultants or
Eligible Directors pursuant to Article VIII hereof.


 


Section
2.23 “Plan” means this Long-Term Incentive Compensation Plan.


 


Section
2.24 “Restricted Stock Award” means an Award granted to an Eligible Employee, Consultant or Eligible Director
under Article VI of the Plan.


 


Section
2.25 “Retirement” means the termination of an Eligible Employee’s employment with the Company, a Subsidiary
or an Affiliated Entity on or after attaining age 65.


 


Section
2.26 “SAR” means a stock appreciation right granted to an Eligible Employee, Consultant or Eligible Director under
Article VII of the Plan.


 


Section
2.27 “Subsidiary” shall have the same meaning set forth in Section 424 of the Code.


 


ARTICLE
III


ADMINISTRATION


 


Section
3.1 Administration of the Plan by the Board. The Board shall administer the Plan. The Board may, by resolution, appoint the
Compensation Committee to administer the Plan and delegate its powers described under this Section 3.1 and otherwise under the
Plan for purposes of Awards granted to Eligible Employees and Consultants.


 


Subject
to the provisions of the Plan, the Board shall have exclusive power to:


 


(a)
Select Eligible Employees and Consultants to participate in the Plan.


 


(b)
Determine the time or times when Awards will be made to Eligible Employees or Consultants.


 






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(c)
Determine the form of an Award, whether Nonqualified Stock Option, Restricted Stock or Performance Units subject to
the Award, the amount and all the terms, conditions (including performance requirements), restrictions and/or limitations, if
any, of an Award, including the time and conditions of exercise or vesting, and the terms of any Award Agreement, which may
include the waiver or amendment of prior terms and conditions or acceleration or early vesting or payment of an Award under
certain circumstances determined by the Board.


 


(d)
Determine whether Awards will be granted singly or in combination.


 


(e)
Accelerate the vesting, exercise or payment of an Award or the performance period of an Award.


 


(f)
Determine whether and to what extent a Performance Bonus may be deferred, either automatically or at the election of the
Participant or the Board.


 


(g)
Take any and all other action it deems necessary or advisable for the proper operation or administration of the
Plan.


 


Section
3.2 Administration of Grants to Eligible Directors. The Board shall have the exclusive power to select Eligible Directors
to participate in the Plan and to determine the number of Nonqualified Stock Options, Performance Units, SARs or shares of Restricted
Stock awarded to Eligible Directors selected for participation. If the Board appoints a committee to administer the Plan, it may
delegate to the committee administration of all other aspects of the Awards made to Eligible Directors.


 


Section
3.3 Board to Make Rules and Interpret Plan. The Board in its sole discretion shall have the authority, subject to the provisions
of the Plan, to establish, adopt, or revise such rules and regulations and to make all such determinations relating to the Plan,
as it may deem necessary or advisable for the administration of the Plan. The Board’s interpretation of the Plan or any
Awards and all decisions and determinations by the Board with respect to the Plan shall be final, binding, and conclusive on all
parties.


 


Section
3.4 Section 162(m) Provisions. The Company intends for the Plan and the Awards made there under to qualify for the exception
from Section 162(m) of the Code for “qualified performance based compensation” if it is determined by the Board that
such qualification is necessary for an Award. Accordingly, the Board shall make determinations as to performance targets and all
other applicable provisions of the Plan as necessary in order for the Plan and Awards made there under to satisfy the requirements
of Section 162(m) of the Code.


 


ARTICLE
IV


GRANT
OF AWARDS


 


Section
4.1 Grant of Awards. Awards granted under this Plan shall be subject to the following conditions:


 


(a)
Any shares of Common Stock related to Awards which terminate by expiration, forfeiture, cancellation or otherwise without the
issuance of shares of Common Stock or are exchanged in the Board’s discretion for Awards not involving Common Stock, shall
be available again for grant under the Plan and shall not be counted against the shares authorized under Section 1.3.


 






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(b)
Common Stock delivered by the Company in payment of an Award authorized under Articles V and VI of the Plan may be authorized
and unissued Common Stock or Common Stock held in the treasury of the Company.


 


(c)
The Board shall, in its sole discretion, determine the manner in which fractional shares arising under this Plan shall be
treated.


 


(d)
Separate certificates or a book-entry registration representing Common Stock shall be delivered to a Participant upon the
exercise of any Option.


 


(e)
The Board shall be prohibited from canceling, reissuing or modifying Awards if such action will have the effect of repricing
the Participant’s Award.


 


(f)
Eligible Directors may only be granted Nonqualified Stock Options, Restricted Stock Awards, SARs or Performance Units under
this Plan.


 


(g)
The maximum term of any Award shall be ten years.


 


ARTICLE
V


STOCK
OPTIONS


 


Section
5.1 Grant of Options. The Board may, from time to time, subject to the provisions of the Plan and such other terms and conditions
as it may determine, grant Options to Eligible Employees. These Options may be Nonqualified Stock Options. The Board may also,
subject to the provisions of the Plan and such other terms and conditions as it may determine, grant Nonqualified Stock Options
to Eligible Directors and Consultants. Each grant of an Option shall be evidenced by an Award Agreement executed by the Company
and the Participant, and shall contain such terms and conditions and be in such form as the Board may from time to time approve,
subject to the requirements of Section 5.2.


 


Section
5.2 Conditions of Options. Unless otherwise stated in the Award Agreement the terms of this section 5.2 shall apply. Each
Option so granted shall be subject to the following conditions:


 


(a) Exercise
Price. As limited by Section 5.2(e) below, each Option shall state the exercise price which shall be set by the Board at the Date
of Grant; provided, however, no Option shall be granted at an exercise price which is less than the Fair Market Value of the Common
Stock on the Date of Grant. The Administrator also may authorize payment in accordance with a cashless exercise program under
which, if so instructed by the Participant, Stock may be issued upon a cashless exercise of the option.


 


(b)
Form of Payment. The exercise price of an Option may be paid (i) in cash or by check, bank draft or money order payable to
the order of the Company; (ii) by delivering shares of Common Stock having a Fair Market Value on the date of payment equal
to the amount of the exercise price, but only to the extent such exercise of an Option would not result in an adverse
accounting charge to the Company for financial accounting purposes with respect to the shares used to pay the exercise price
unless otherwise determined by the Board; or (iii) a combination of the foregoing. In addition to the foregoing, the Board
may permit an Option granted under the Plan to be exercised by a broker-dealer acting on behalf of a Participant through
procedures approved by the Board. Notwithstanding the foregoing, the Company may require a Participant to pay all applicable
income and employment taxes, required by law to be withheld, in cash as a precondition to exercising the Participant’s
Option until such time as the Company has registered its stock and has established a relationship with a broker-dealer acting
on the Company’s behalf to sell the stock in the market.


 






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(c) Exercise
of Options. Unless otherwise stated in the Award Agreement the terms of this Section 5.2(c) shall apply. Options granted under
the Plan shall be exercisable, in whole or in such installments and at such times, and shall expire at such time, as shall be
provided by the Board in the Award Agreement. Exercise of an Option requires (1) written notice to the Secretary of the Company
stating the election to exercise in the form and manner determined by the Board; and (2) payment of the exercise price and all
applicable withholding taxes.


 


(d) Other
Terms and Conditions. Among other conditions that may be imposed by the Board, if deemed appropriate, are those relating to (i)
the period or periods and the conditions of exercisability of any Option; (ii) the minimum periods during which Participants must
be employed by the Company, its Subsidiaries, or an Affiliated Entity, or must hold Options before they may be exercised; (iii)
the minimum periods during which shares acquired upon exercise must be held before sale or transfer shall be permitted; (iv) conditions
under which such Options or shares may be subject to forfeiture; (v) the frequency of exercise or the minimum or maximum number
of shares that may be acquired at any one time; (vi) the achievement by the Company of specified performance criteria; and (vii)
non-compete and protection of business matters.


 


(e) Application
of Funds. The proceeds received by the Company from the sale of Common Stock pursuant to Options will be used for general corporate
purposes.


 


(f) Stockholder
Rights. No Participant shall have a right as a stockholder with respect to any share of Common Stock subject to an Option prior
to purchase of such shares of Common Stock by exercise of the Option.


 


ARTICLE
VI


RESTRICTED
STOCK AWARDS


 


Section
6.1 Grant of Restricted Stock Awards. The Board may, from time to time, subject to the provisions of the Plan and such other
terms and conditions as it may determine, grant a Restricted Stock Award to Eligible Employees, Consultants or Eligible Directors.
Restricted Stock Awards shall be awarded in such number and at such times during the term of the Plan as the Board shall determine.
Each Restricted Stock Award shall be subject to an Award Agreement setting forth the terms of such Restricted Stock Award and
may be evidenced in such manner as the Board deems appropriate, including, without limitation, a book-entry registration or issuance
of a stock certificate or certificates.


 






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Section
6.2 Conditions of Restricted Stock Awards. The grant of a Restricted Stock Award shall be subject to the following:


 


(a)
Restriction Period. Restricted Stock Awards granted to an Eligible Employee shall require the holder to remain in the
employment of the Company, a Subsidiary, or an Affiliated Entity for a prescribed period. Restricted Stock Awards granted to
Consultants or Eligible Directors shall require the holder to provide continued services to the Company for a period of time.
These employment and service requirements are collectively referred to as a “Restriction Period”. The Board or
the Committee, as the case may be, shall determine the Restriction Period or Periods which shall apply to the shares of
Common Stock covered by each Restricted Stock Award or portion thereof. In addition to any time vesting conditions determined
by the Board or the Committee, as the case may be, Restricted Stock Awards may be subject to the achievement by the Company
of specified performance criteria based upon the Company’s achievement of all or any of the operational, financial or
stock performance criteria set forth on Exhibit A annexed hereto, as may from time to time be established by the Board or the
Committee, as the case may be. At the end of the Restriction Period, assuming the fulfillment of any other specified vesting
conditions, the restrictions imposed by the Board or the Committee, as the case may be shall lapse with respect to the shares
of Common Stock covered by the Restricted Stock Award or portion thereof. The Board or the Committee, as the case may be,
may, in its discretion, accelerate the vesting of a Restricted Stock Award in the case of the death, Disability or Retirement
of the Participant who is an Eligible Employee or resignation of a Participant who is a Consultants or an Eligible
Director.


 


(b) Restrictions.
The holder of a Restricted Stock Award may not sell, transfer, pledge, exchange, hypothecate, or otherwise dispose of the shares
of Common Stock represented by the Restricted Stock Award during the applicable Restriction Period. The Board shall impose such
other restrictions and conditions on any shares of Common Stock covered by a Restricted Stock Award as it may deem advisable including,
without limitation, restrictions under applicable Federal or state securities laws, and may legend the certificates representing
Restricted Stock to give appropriate notice of such restrictions.


 


(c) Rights
as Stockholders. During any Restriction Period, the Board may, in its discretion, grant to the holder of a Restricted Stock Award
all or any of the rights of a stockholder with respect to the shares, including, but not by way of limitation, the right to vote
such shares and to receive dividends. If any dividends or other distributions are paid in shares of Common Stock, all such shares
shall be subject to the same restrictions on transferability as the shares of Restricted Stock with respect to which they were
paid.


 


ARTICLE
VII 


STOCK
APPRECIATION RIGHTS


 


Section
7.1 Grant of SARs. The Board may from time to time, in its sole discretion, subject to the provisions of the Plan and subject
to other terms and conditions as the Board may determine, grant a SAR to any Eligible Employee, Consultant or Eligible Director.
SARs may be granted in tandem with an Option, in which event, the Participant has the right to elect to exercise either the SAR
or the Option. Upon the Participant’s election to exercise one of these Awards, the other tandem Award is automatically
terminated. SARs may also be granted as an independent Award separate from an Option. Each grant of a SAR shall be evidenced by
an Award Agreement executed by the Company and the Participant and shall contain such terms and conditions and be in such form
as the Board may from time to time approve, subject to the requirements of the Plan. The exercise price of the SAR shall not be
less than the Fair Market Value of a share of Common Stock on the Date of Grant of the SAR.


 






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Section
7.2 Exercise and Payment. SARs granted under the Plan shall be exercisable in Agreement. Exercise of a SAR shall be by
written notice to the Secretary of the Company. The amount payable with respect to each SAR shall be equal in value to the
excess, if any, of the Fair Market Value of a share of Common Stock on the exercise date over the exercise price of the SAR.
Payment of amounts attributable to a SAR shall be made in shares of Common Stock.


 


ARTICLE
VIII


PERFORMANCE
UNITS


 


Section
8.1 Grant of Awards. The Board may, from time to time, subject to the provisions of the Plan and such other terms and conditions
as it may determine, grant Performance Units to Eligible Employees, Consultants and Eligible Directors. Each Award of Performance
Units shall be evidenced by an Award Agreement executed by the Company and the Participant, and shall contain such terms and conditions
and be in such form as the Board may from time to time approve, subject to the requirements of Section 8.2.


 


Section
8.2 Conditions of Awards. Each Award of Performance Units shall be subject to the following conditions:


 


(a) Establishment
of Award Terms. Each Award shall state the target, maximum and minimum value of each Performance Unit payable upon the achievement
of performance goals.


 


(b) Achievement
of Performance Goals. The Board shall establish performance targets for each Award for a period of no less than a year based upon
certain performance criteria established by the Board. The Board may use some or all of the operational, financial or performance
criteria listed in Exhibit A attached or establish such other criteria as it deems appropriate. The Board shall also establish
such other terms and conditions as it deems appropriate to such Award. The Award may be paid out in cash or Common Stock as determined
in the sole discretion of the Board.


 


ARTICLE
IX


PERFORMANCE BONUS


 


Section
9.1 Grant of Performance Bonus. The Board may from time to time, subject to the provisions of the Plan and such other terms
and conditions as the Board may determine, grant a Performance Bonus to certain Eligible Employees selected for participation.
The Board will determine the amount that may be earned as a Performance Bonus in any period of one year or more upon the achievement
of a performance target established by the Board. The Board shall select the applicable performance target(s) for each period
in which a Performance Bonus is awarded. The performance target shall be based upon all or some of the operational, financial
or performance criteria more specifically listed in Exhibit A attached.


 


Section
9.2 Payment of Performance Bonus. In order for any Participant to be entitled to payment of a Performance Bonus, the applicable
performance target(s) established by the Board must first be obtained or exceeded. Payment of a Performance Bonus shall be made
within 60 days of the Board’s certification that the performance target(s) has been achieved unless the Participant has
previously elected to defer payment pursuant to a nonqualified deferred compensation plan adopted by the Company. Payment of a
Performance Bonus may be made in either cash or Common Stock as determined in the sole discretion of the Board.


 






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ARTICLE
X


STOCK
ADJUSTMENTS


 


In
the event that the shares of Common Stock, as constituted on the effective date of the Plan, shall be changed into or exchanged
for a different number or kind of shares of stock or other securities of the Company or of another corporation (whether by reason
of merger, consolidation, recapitalization, reclassification, stock split, spin-off, combination of shares or otherwise), or if
the number of such shares of Common Stock shall be increased through the payment of a stock dividend, or a dividend on the shares
of Common Stock, or if rights or warrants to purchase securities of the Company shall be issued to holders of all outstanding
Common Stock, then there shall be substituted for or added to each share available under and subject to the Plan, and each share
theretofore appropriated under the Plan, the number and kind of shares of stock or other securities into which each outstanding
share of Common Stock shall be so changed or for which each such share shall be exchanged or to which each such share shall be
entitled, as the case may be, on a fair and equivalent basis in accordance with the applicable provisions of Section 424 of the
Code; provided, however, with respect to Options, in no such event will such adjustment result in a modification of any Option
as defined in Section 424(h) of the Code. In the event there shall be any other change in the number or kind of the outstanding
shares of Common Stock, or any stock or other securities into which the Common Stock shall have been changed or for which it shall
have been exchanged, then if the Board shall, in its sole discretion, determine that such change equitably requires an adjustment
in the shares available under and subject to the Plan, or in any Award, theretofore granted, such adjustments shall be made in
accordance with such determination, except that no adjustment of the number of shares of Common Stock available under the Plan
or to which any Award relates that would otherwise be required shall be made unless and until such adjustment either by itself
or with other adjustments not previously made would require an increase or decrease of at least 1% in the number of shares of
Common Stock available under the Plan or to which any Award relates immediately prior to the making of such adjustment (the “Minimum
Adjustment”). Any adjustment representing a change of less than such minimum amount shall be carried forward and made as
soon as such adjustment together with other adjustments required by this Article X and not previously made would result in a Minimum
Adjustment. Notwithstanding the foregoing, any adjustment required by this Article X which otherwise would not result in a Minimum
Adjustment shall be made with respect to shares of Common Stock relating to any Award immediately prior to exercise, payment or
settlement of such Award.


 


ARTICLE
XI


GENERAL


 


Section
11.1 Amendment or Termination of Plan. The Board may alter, suspend or terminate the Plan at any time provided, however, that
it may not, without stockholder approval, adopt any amendment which would (i) allow for the grant of incentive stock options pursuant
to the Plan.


 






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Section
11.2 Termination of Employment; Termination of Service. Unless otherwise stated in the Award Agreement, if an Eligible
Employee’s employment with the Company, a Subsidiary or an Affiliated Entity terminates as a result of death,
Disability or Retirement, the Eligible Employee (or personal representative in the case of death) shall be entitled to
purchase all or any part of the shares subject to any vested Options and SAR’s for a period of up to two year from such
date of termination, the unvested portion of any Award shall be forfeited unless otherwise accelerated pursuant to the terms
of the Award Agreement or by the Board. If an Eligible Employee’s employment terminates for any other reason, the
Eligible Employee shall be entitled to purchase all or any part of the shares subject to any vested Options and SAR’s
for a period of up to one year from such date of termination, the unvested portion of any Award shall be forfeited unless
otherwise accelerated pursuant to the terms of the Award Agreement or by the Board. In no event shall any Options and
SAR’s be exercisable past their expiration date. The Board may, in its sole discretion, accelerate the vesting of
unvested Options and SAR’s in the event of termination of employment of any Participant.


 


In
the event a Consultant ceases to provide services to the Company or an Eligible Director terminates service as a director of the
Company, the unvested portion of any Award shall be forfeited unless otherwise accelerated pursuant to the terms of the Award
Agreement or by the Board. The Consultant or Eligible Director’s Nonqualified Stock Options and SAR’s which are otherwise
vested and exercisable on his date of termination of service shall continue to be exercisable from such date of termination for
a period of up to one year.


 


All
other benefits under this plan that have not been earned or performance goals that have not been reached on the date that employment
has been terminated or services terminated, for whatever reason shall terminate on the date the employment or services with the
Company is terminated.


 


Section
11.3 Limited Transferability – Options. The Board may, in its discretion, authorize all or a portion of the Nonqualified
Stock Options granted under this Plan to be on terms which permit transfer by the Participant to (i) the ex-spouse of the Participant
pursuant to the terms of a domestic relations order, (ii) the spouse, children, grandchildren, or siblings of the Participant
(“Immediate Family Members”), (iii) a trust or trusts for the exclusive benefit of such Immediate Family Members,
or (iv) a partnership or limited liability company in which such Immediate Family Members are the only partners or members. In
addition, there may be no consideration for any such transfer. The Award Agreement pursuant to which such Nonqualified Stock Options
are granted expressly provide for transferability in a manner consistent with this paragraph. Subsequent transfers of transferred
Nonqualified Stock Options shall be prohibited except as set forth below in this Section 11.3. Following transfer, any such Nonqualified
Stock Options shall continue to be subject to the same terms and conditions as were applicable immediately prior to transfer,
provided that for purposes of Section 11.2 hereof the term “Participant” shall be deemed to refer to the transferee.
The events of termination of employment of Section 11.2 hereof shall continue to be applied with respect to the original Participant,
following which the Nonqualified Stock Options shall be exercisable by the transferee only to the extent, and for the periods
specified in Section 11.2 hereof. No transfer pursuant to this Section 11.3 shall be effective to bind the Company unless the
Company shall have been furnished with written notice of such transfer together with such other documents regarding the transfer
as the Board shall request. With the exception of a transfer in compliance with the foregoing provisions of this Section 11.3,
all other types of Awards authorized under this Plan shall be transferable only by will or the laws of descent and distribution;
however, no such transfer shall be effective to bind the Company unless the Board has been furnished with written notice of such
transfer and an authenticated copy of the will and/or such other evidence as the Board may deem necessary to establish the validity
of the transfer and the acceptance by the transferee of the terms and conditions of such Award.


 






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Section
11.4 Withholding Taxes. Unless otherwise paid by the Participant, the Company, its Subsidiaries or any of its Affiliated Entities
shall be entitled to deduct from any payment under the Plan, regardless of the form of such payment, the amount of all applicable
income and employment taxes required by law to be withheld with respect to such payment or may require the Participant to pay
to it such tax prior to and as a condition of the making of such payment. In accordance with any applicable administrative guidelines
it establishes, the Board may allow a Participant to pay the amount of taxes required by law to be withheld from an Award by (i)
directing the Company to withhold from any payment of the Award a number of shares of Common Stock having a Fair Market Value
on the date of payment equal to the amount of the required withholding taxes or (ii) delivering to the Company previously owned
shares of Common Stock having a Fair Market Value on the date of payment equal to the amount of the required withholding taxes.
However, any payment made by the Participant pursuant to either of the foregoing clauses (i) or (ii) shall not be permitted if
it would result in an adverse accounting charge with respect to such shares used to pay such taxes unless otherwise approved by
the Board.


 


Section
11.5 Intentionally deleted.


 


Section
11.6 Amendments to Awards. Subject to the limitations of Article IV, such as the prohibition on repricing of Options, the
Board may at any time unilaterally amend the terms of any Award Agreement, whether or not presently exercisable or vested, to
the extent it deems appropriate. However, amendments which are adverse to the Participant shall require the Participant’s
consent.


 


Section
11.7 Registration; Regulatory Approval. Following adoption of the Amended and Restated Plan by the Board, the Board, in its
sole discretion, may determine to file with the Securities and Exchange Commission and keep continuously effective, a Registration
Statement on Form S-8 with respect to shares of Common Stock subject to Awards hereunder. Notwithstanding anything contained in
this Plan to the contrary, the Company shall have no obligation to issue shares of Common Stock under this Plan prior to the obtaining
of any approval from, or satisfaction of any waiting period or other condition imposed by, any governmental agency which the Board
shall, in its sole discretion, determine to be necessary or advisable.


 


Section
11.8 Right to Continued Employment. Participation in the Plan shall not give any Eligible Employee any right to remain in
the employ of the Company, any Subsidiary, or any Affiliated Entity. The Company or, in the case of employment with a Subsidiary
or an Affiliated Entity, the Subsidiary or Affiliated Entity reserves the right to terminate any Eligible Employee at any time.
Further, the adoption of this Plan shall not be deemed to give any Eligible Employee or any other individual any right to be selected
as a Participant or to be granted an Award.


 


Section
11.9 Reliance on Reports. Each member of the Board and each member of the Compensation Committee shall be fully justified
in relying or acting in good faith upon any report made by the independent public accountants of the Company and its Subsidiaries
and upon any other information furnished in connection with the Plan by any person or persons other than himself or herself. In
no event shall any person who is or shall have been a member of the Board be liable for any determination made or other action
taken or any omission to act in reliance upon any such report or information or for any action taken, including the furnishing
of information, or failure to act, if in good faith.


 






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Section
11.10 Construction. Masculine pronouns and other words of masculine gender shall refer to both men and women. The titles and
headings of the sections in the Plan are for the convenience of reference only, and in the event of any conflict, the text of
the Plan, rather than such titles or headings, shall control.


 


Section
11.11 Governing Law. The Plan shall be governed by and construed in accordance with the laws of the State of Delaware except
as superseded by applicable Federal law.


 


Section
11.12 Other Laws. The Board may refuse to issue or transfer any shares of Common Stock or other consideration under an Award
if, acting in its sole discretion, it determines that the issuance or transfer of such shares or such other consideration might
violate any applicable law or regulation or entitle the Company to recover the same under Section 16(b) of the Exchange Act, and
any payment tendered to the Company by a Participant, other holder or beneficiary in connection with the exercise of such Award
shall be promptly refunded to the relevant Participant, holder or beneficiary.


 


Section
11.13 No Trust or Fund Created. Neither the Plan nor an Award shall create or be construed to create a trust or separate fund
of any kind or a fiduciary relationship between the Company and a Participant or any other person. To the extent that a Participant
acquires the right to receive payments from the Company pursuant to an Award, such right shall be no greater than the right of
any general unsecured creditor of the Company.


 


Section
11.14 Conformance to Section 409A of the Code. To the extent that the Committee determines that any Award granted under the
Plan is subject to Section 409A of the Code, the Award Agreement evidencing such Award shall incorporate the terms and conditions
required by Section 409A of the Code. To the extent applicable, the Plan and Award Agreements shall be interpreted in accordance
with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder, including
without limitation any such regulations or other guidance that may be issued after the Effective Date. Notwithstanding any provision
of the Plan to the contrary, in the event that the Committee determines that any Award may be subject to Section 409A of the Code
and related Department of Treasury guidance, the Committee may adopt such amendments to the Plan and the applicable Award Agreement
or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other
actions, that the Committee determines are necessary or appropriate to (i) exempt the Award from Section 409A of the Code or (ii)
comply with the requirements of Section 409A of the Code and related Department of Treasury guidance.


 






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EXHIBIT
A


 


Incentive
Stock Option Plan


Performance
Criteria


 


Operational
Criteria may include:


 


Reserve
additions/replacements


 


Finding
& development costs


 


Production
volume


 


Production
Costs


 


Financial
Criteria may include:


 


Earnings(net
income, earnings before interest, taxes, depreciation and amortization (“EBITDA”)


 


Earnings
per share:


 


Cash flow


 


Operating
income


 


General
and Administrative Expenses


 


Debt to
equity ratio


 


Debt to
cash flow


 


Debt to
EBITDA


 


EBITDA to
Interest


 


Return on
Assets


 


Return on
Equity


 


Return on
Invested Capital


 


Profit returns/margins


 


Midstream
margins


 


Stock
Performance Criteria:


 


Stock price
appreciation


 


Total stockholder
return


 


Relative
stock price performance