ARCTURUS THERAPEUTICS HOLDINGS INC.


AMENDED & RESTATED 2019 OMNIBUS
EQUITY INCENTIVE PLAN


(Originally Effective June 10, 2019;
Amended & Restated April 26, 2020)


 


ARTICLE 1.


EFFECTIVE DATE, OBJECTIVES AND DURATION


 


1.1 Effective Date of the Plan.
The Board of Directors of ARCTURUS THERAPEUTICS HOLDINGS INC., a Delaware corporation (the “Company”), originally adopted
the 2019 OMNIBUS EQUITY INCENTIVE PLAN, as amended to date (the “Plan”) effective as of June 10, 2019. The most
recent amendment and restatement of the Plan was adopted by the Board on April 26, 2020 and shall be effective as of the date of
approval by the Company’s stockholders (the “Effective Date”).


 


1.2 Objectives of the Plan.
The Plan is intended (a) to allow selected employees of and consultants to the Company and its Affiliates to acquire or increase
equity ownership in the Company, thereby strengthening their commitment to the success of the Company and stimulating their efforts
on behalf of the Company, and to assist the Company and its Affiliates in attracting new employees, officers and consultants and
retaining existing employees and consultants, (b) to optimize the profitability and growth of the Company and its Affiliates
through incentives which are consistent with the Company’s goals, (d) to provide Grantees with an incentive for excellence
in individual performance, (e) to promote teamwork among employees, consultants and Non-Employee Directors, and
(f) to attract and retain highly qualified persons to serve as Non-Employee Directors and to promote ownership by
such Non-Employee Directors of a greater proprietary interest in the Company, thereby aligning such Non-Employee Directors’
interests more closely with the interests of the Company’s stockholders.


 


1.3 Duration of the Plan. The
Plan shall commence on the Effective Date and shall remain in effect, subject to the right of the Board to amend or terminate the
Plan at any time pursuant to Article 15 hereof, until the earlier of the tenth anniversary of the Effective Date, or the date all
Shares subject to the Plan shall have been purchased or acquired and the restrictions on all Restricted Shares granted under the
Plan shall have lapsed, according to the Plan’s provisions; provided, however, in no event may an Incentive Stock Option
be granted more than ten years after the earlier of (i) the date of the most recent adoption of the Plan by the Board or (ii) the
Effective Date..


 


ARTICLE 2.


DEFINITIONS


 


Whenever used in the Plan, the following
terms shall have the meanings set forth below:


 


2.1 “Affiliate” means
any corporation or other entity, including but not limited to partnerships, limited liability companies and joint ventures, with
respect to which the Company, directly or indirectly, owns as applicable (a) stock possessing more than fifty percent (50%)
of the total combined voting power of all classes of stock entitled to vote, or more than fifty percent (50%) of the total value
of all shares of all classes of stock of such corporation, or (b) an aggregate of more than fifty percent (50%) of the profits
interest or capital interest of a non-corporate entity.


 


2.2 “Award” means Options
(including non-qualified options and Incentive Stock Options), SARs, Restricted Shares, Performance Units (which may
be paid in cash), Performance Shares, Deferred Stock, Restricted Stock Units, Dividend Equivalents, Bonus Shares or Other Stock-Based
Awards granted under the Plan.


 


2.3 “Award Agreement”
means either (a) a written agreement entered into by the Company and a Grantee setting forth the terms and provisions applicable
to an Award granted under this Plan, or (b) a written statement issued by the Company to a Grantee describing the terms and
provisions of such Award, including any amendment or modification thereof. The Committee may provide for the use of electronic,
internet or other non-paper Award Agreements and the use of electronic, internet or other non-paper means for
the acceptance thereof and actions thereunder by the Grantee.


 


2.4 “Board” means the
Board of Directors of the Company.


 






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2.5 “Bonus Shares” means
Shares that are awarded to a Grantee with or without cost and without restrictions either in recognition of past performance (whether
determined by reference to another employee benefit plan of the Company or otherwise), as an inducement to become an Eligible Person
or, with the consent of the Grantee, as payment in lieu of any cash remuneration otherwise payable to the Grantee.


 


2.6 “Cause” means, except
as otherwise defined in an Award Agreement:


 


(a) the commission of any act by a Grantee
constituting a felony or crime of moral turpitude (or their equivalent in a non-United States jurisdiction);


 


(b) an act of dishonesty, fraud, intentional
misrepresentation, or harassment which, as determined in good faith by the Committee, would: (i) materially adversely affect
the business or the reputation of the Company or any of its Affiliates with their respective current or prospective customers,
suppliers, lenders and/or other third parties with whom such entity does or might do business; or (ii) expose the Company
or any of its Affiliates to a risk of civil or criminal legal damages, liabilities or penalties;


 


(c) any material misconduct in violation
of the Company’s or an Affiliate’s written policies; or


 


(d) willful and deliberate non-performance of
the Grantee’s duties in connection with the business affairs of the Company or its Affiliates;


 


provided, however, that if the
Grantee has a written employment or consulting agreement with the Company or any of its Affiliates or participates in any severance
plan established by the Company that includes a definition of “cause,” Cause shall have the meaning set forth in such
employment or consulting agreement or severance plan.


 


2.7 “CEO” means the
Chief Executive Officer of the Company.


 


2.8 “Change in Control”
shall have the meaning set forth in Section 16.4(e).


 


2.9 “Code” means the
Internal Revenue Code of 1986, as amended from time to time. References to a particular section of the Code include references
to regulations and rulings thereunder and to successor provisions.


 


2.10 “Committee” or
“Incentive Plan Committee” has the meaning set forth in Section 3.1(a).


 


2.11 “Compensation Committee”
means the compensation committee of the Board.


 


2.12 “Common Stock”
means the common stock, $0.001 par value, of the Company.


 


2.13 “Corporate Transaction”
shall have the meaning set forth in Section 4.2(b).


 


2.14 “Deferred Stock”
means a right, granted under Article 10, to receive Shares at the end of a specified deferral period.


 


2.15 “Disability” or
“Disabled” means, unless otherwise defined in an Award Agreement, or as otherwise determined under procedures
established by the Committee for purposes of the Plan:


 


(a) Except as provided in (b) below,
a disability within the meaning of Section 22(e)(3) of the Code; and


 


(b) In the case of any Award that constitutes
deferred compensation within the meaning of Section 409A of the Code, a disability as defined in regulations under Code Section 409A.
For purpose of Code Section 409A, a Grantee will be considered Disabled if:


 


(i) the Grantee is unable to
engage in any substantial gainful activity 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 twelve (12) months, or


 


(ii) the Grantee is, 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 twelve (12) months, receiving income replacement benefits for a period of not less
than three (3) months under an accident and health plan covering employees of the Grantee’s employer.


 


2.16 “Dividend Equivalent”
means a right to receive payments equal to dividends or property, if and when paid or distributed, on a specified number of Shares.


 






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2.17 “Effective Date”
has the meaning set forth in Section 1.1.


 


2.18 “Eligible Person”
means any individual who is an employee (including any officer) of, a non-employee consultant to, or a Non-Employee Director
of, the Company or any Affiliate; provided, however, that solely with respect to the grant of an Incentive Stock Option, an Eligible
Person shall be any employee (including any officer) of the Company or any Subsidiary Corporation. Notwithstanding the foregoing,
an Eligible Person shall also include an individual who is expected to become an employee to, non-employee consultant
of or Non-Employee Director of the Company or any Affiliate within a reasonable period of time after the grant of an
Award (other than an Incentive Stock Option); provided that any Award granted to any such individual shall be automatically terminated
and cancelled without consideration if the individual does not begin performing services for the Company or any Affiliate within
twelve (12) months after the Grant Date. Solely for purposes of Section 5.6(b), current or former employees or non-employee directors
of, or consultants to, of an Acquired Entity who receive Substitute Awards in substitution for Acquired Entity Awards shall be
considered Eligible Persons under this Plan with respect to such Substitute Awards.


 


2.19 “Exchange Act”
means the Securities Exchange Act of 1934, as amended from time to time. References to a particular section of the Exchange Act
include references to successor provisions.


 


2.20 “Exercise Price”
means (a) with respect to an Option, the price at which a Share may be purchased by a Grantee pursuant to such Option or (b) with
respect to an SAR, the price established at the time an SAR is granted pursuant to Article 7, which is used to determine the amount,
if any, of the payment due to a Grantee upon exercise of the SAR.


 


2.21 “Fair Market Value”
of a Share means a price that is based on the opening, closing, actual, high, low, or the arithmetic mean of selling prices of
a Share reported on an established stock exchange which is the principal exchange upon which the Shares are traded on the applicable
date or the preceding trading day. Unless the Committee determines otherwise, if the Shares are traded over the counter at the
time a determination of its Fair Market Value is required to be made hereunder, Fair Market Value shall be deemed to be equal to
the arithmetic mean between the reported high and low or closing bid and asked prices of a Share on the applicable date, or if
no such trades were made that day then the most recent date on which Shares were publicly traded. In the event Shares are not publicly
traded at the time a determination of their value is required to be made hereunder, the determination of their Fair Market Value
shall be made by the Committee in such manner as it deems appropriate provided such manner is consistent with Treasury Regulation Section 1.409A-1(b)(5)(iv)(B).


 


2.22 “Grant Date” means
the date on which an Award is granted or such later date as specified in advance by the Committee.


 


2.23 “Grantee” means
a person who has been granted an Award.


 


2.24 “Incentive Stock Option”
means an Option that is intended to meet the requirements of Section 422 of the Code.


 


2.25 “Including” or
“includes” means “including, without limitation,” or “includes, without limitation,”
respectively.


 


2.26 “Management Committee”
has the meaning set forth in Section 3.1(b).


 


2.27 “Non-Employee Director”
means a member of the Board who is not an employee of the Company or any Affiliate.


 


2.28 “Option” means
an option granted under Article 6 of the Plan.


 


2.29 “Other Stock-Based Award”
means a right, granted under Article 13 hereof, that relates to or is valued by reference to Shares or other Awards relating to
Shares.


 


2.30 “Performance Period”
means, with respect to an Award of Performance Shares or Performance Units, the period of time during which the performance vesting
conditions applicable to such Award must be satisfied.


 


2.31 “Performance Share”
and “Performance Unit” have the respective meanings set forth in Article 9.


 


2.32 “Period of Restriction”
means the period during which Restricted Shares are subject to forfeiture if the conditions specified in the Award Agreement are
not satisfied.


 






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2.33 “Person” means
any individual, sole proprietorship, partnership, joint venture, limited liability company, trust, unincorporated organization,
association, corporation, institution, public benefit corporation, entity or government instrumentality, division, agency, body
or department.


 


2.34 “Restricted Shares”
means Shares, granted under Article 8, that are both subject to forfeiture and are nontransferable if the Grantee does not satisfy
the conditions specified in the Award Agreement applicable to such Shares.


 


2.35 “Restricted Stock Units”
are rights, granted under Article 10, to receive Shares (or cash in lieu thereof) if the Grantee satisfies the conditions specified
in the Award Agreement applicable to such rights.


 


2.36 “Rule 16b-3”
means Rule 16b-3 promulgated by the SEC under the Exchange Act, as amended from time to time, together with any successor
rule.


 


2.37 “SEC” means the
United States Securities and Exchange Commission, or any successor thereto.


 


2.38 “Section 16 Non-Employee Director”
means a member of the Board who satisfies the requirements to qualify as a “non-employee director” under
Rule 16b-3.


 


2.39 “Section 16 Person”
means a person who is subject to potential liability under Section 16(b) of the Exchange Act with respect to transactions
involving equity securities of the Company.


 


2.40 “Separation from Service”
means, with respect to any Award that constitutes deferred compensation within the meaning of Code Section 409A, a “separation
from service” as defined in Treasury Regulation Section 1.409A-1(h). For this purpose, a “separation
from service” is deemed to occur on the date that the Company and the Grantee reasonably anticipate that the level of bona
fide services the Grantee would perform for the Company and/or any Affiliates after that date (whether as an employee, Non-Employee Director
or consultant or independent contractor) would permanently decrease to a level that, based on the facts and circumstances, would
constitute a separation from service; provided that a decrease to a level that is 50% or more of the average level of bona fide
services provided over the prior 36 months shall not be a separation from service, and a decrease to a level that is 20% or less
of the average level of such bona fide services shall be a separation from service. The Committee retains the right and discretion
to specify, and may specify, whether a separation from service occurs with respect to those individuals who are performing services
for the Company or an Affiliate immediately prior to an asset purchase transaction in which the Company or an Affiliate is the
seller and who continue to perform services for the buyer (or an affiliate thereof) immediately following such asset purchase transaction;
provided, such specification is made in accordance with the requirements of Treasury Regulation Section 1.409A-1(h)(4).


 


2.41 “Share” means a
share of Common Stock, and such other securities of the Company, as may be substituted or resubstituted for Shares pursuant to
Section 4.2 hereof.


 


2.42 “Stock Appreciation Right”
or “SAR” means an Award granted under Article 7 of the Plan.


 


2.43 “Subsidiary Corporation”
means a corporation other than the Company in an unbroken chain of corporations beginning with the Company if, at the time of granting
the Option, each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of
the total combined voting power of all classes of stock in one of the other corporations in such chain.


 


2.44 “Surviving Company”
means (a) the surviving corporation in any merger, consolidation or similar transaction, involving the Company (including
the Company if the Company is the surviving corporation), (b) or the direct or indirect parent company of such surviving corporation
or (c) the direct or indirect parent company of the Company following a sale of substantially all of the outstanding stock
of the Company.


 


2.45 “Term” of any Option
or SAR means the period beginning on the Grant Date of an Option or SAR and ending on the date such Option or SAR expires, terminates
or is cancelled. No Option or SAR granted under this Plan shall have a Term exceeding 10 years.


 


2.46 “Termination of Affiliation”
occurs on the first day on which an individual is for any reason no longer performing services for the Company or any Affiliate
in the capacity of an employee of, a non-employee consultant to, or a Non-Employee Director of, the Company
or any Affiliate or with respect to an individual who is an employee of, a non-employee consultant to or a Non-Employee Director
of an Affiliate, the first day on which such entity ceases to be an Affiliate of the Company unless such individual continues to
perform Services for the Company or another Affiliate without interruption after such entity ceases to be an Affiliate. Notwithstanding
the foregoing, if an Award constitutes deferred compensation within the meaning of Code Section 409A, Termination of Affiliation
with respect to such Award shall mean the Grantee’s Separation from Service.


 






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ARTICLE 3.


ADMINISTRATION


 


3.1 Committee.


 


(a) Subject to Article 14, and to Section 3.2,
the Plan shall be administered by a Committee (the “Incentive Plan Committee” or the “Committee”) of directors
of the Company appointed by the Board from time to time. Notwithstanding the foregoing, either the Board or the Compensation Committee
may at any time and in one or more instances reserve administrative powers to itself as the Committee or exercise any of the administrative
powers of the Committee. The number of members of the Committee may from time to time be increased or decreased as the Board or
Compensation Committee deems appropriate. To the extent the Board or Compensation Committee considers it desirable to comply with
Rule 16b-3, the Committee shall consist of two or more directors of the Company, all of whom qualify as Section 16 Non-Employee Directors.


 


(b) The Board or the Compensation Committee
may appoint and delegate to another committee (“Management Committee”), or to the CEO, any or all of the authority
of the Board or the Committee, as applicable, with respect to Awards to Grantees other than Grantees who are executive officers, Non-Employee Directors,
or Section 16 Persons at the time any such delegated authority is exercised.


 


(c) Unless the context requires otherwise,
any references herein to “Committee” include references to the Incentive Plan Committee, the Board or the Compensation
Committee to the extent Incentive Plan Committee, the Board or the Compensation Committee, as applicable, has assumed or exercises
administrative powers itself as the Committee pursuant to subsection (a), and to the Management Committee or the CEO to the extent
either has been delegated authority pursuant to subsection (b), as applicable; provided that (i) for purposes of Awards to Non-Employee Directors,
“Committee” shall include only the full Board, and (ii) for purposes of Awards intended to comply with Rule 16b-3, the
“Committee” shall include only the Incentive Plan Committee or the Compensation Committee.


 


3.2 Powers of Committee. Subject
to and consistent with the provisions of the Plan (including Article 14), the Committee has full and final authority and sole discretion
as follows; provided that any such authority or discretion exercised with respect to a specific Non-Employee Director
shall be approved by the affirmative vote of a majority of the members of the Board, even if not a quorum, but excluding the Non-Employee Director
with respect to whom such authority or discretion is exercised:


 


(a) to determine when, to whom and in
what types and amounts Awards should be granted;


 


(b) to grant Awards to Eligible Persons
in any number and to determine the terms and conditions applicable to each Award (including the number of Shares or the amount
of cash or other property to which an Award will relate, any Exercise Price or purchase price, any limitation or restriction, any
schedule for or performance conditions relating to the earning of the Award or the lapse of limitations, forfeiture restrictions,
restrictions on exercisability or transferability, any performance goals including those relating to the Company and/or an Affiliate
and/or any division thereof and/or an individual, and/or vesting based on the passage of time, based in each case on such considerations
as the Committee shall determine);


 


(c) to determine the benefit payable under
any Performance Unit, Performance Share, Dividend Equivalent, Other Stock-Based Award or Cash Incentive Award and to determine
whether any performance or vesting conditions have been satisfied;


 


(d) to determine whether or not specific
Awards shall be granted in connection with other specific Awards, and if so, whether they shall be exercisable cumulatively with,
or alternatively to, such other specific Awards and all other matters to be determined in connection with an Award;


 


(e) to determine the Term of any Option
or SAR;


 






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(f) to determine the amount, if any, that
a Grantee shall pay for Restricted Shares, whether to permit or require the payment of cash dividends thereon to be deferred and
the terms related thereto, when Restricted Shares (including Restricted Shares acquired upon the exercise of an Option) shall be
forfeited and whether such shares shall be held in escrow;


 


(g) to determine whether, to what extent
and under what circumstances an Award may be settled in, or the exercise price of an Award may be paid in, cash, Shares, other
Awards or other property, or an Award may be accelerated, vested, canceled, forfeited or surrendered or any terms of the Award
may be waived, and to accelerate the exercisability of, and to accelerate or waive any or all of the terms and conditions applicable
to, any Award or any group of Awards for any reason and at any time;


 


(h) to determine with respect to Awards
granted to Eligible Persons whether, to what extent and under what circumstances cash, Shares, other Awards, other property and
other amounts payable with respect to an Award will be deferred, either at the election of the Grantee or automatically pursuant
to the terms of the Award Agreement;


 


(i) to offer to exchange or buy out any
previously granted Award for a payment in cash, Shares or other Award;


 


(j) to construe and interpret the Plan
and to make all determinations, including factual determinations, necessary or advisable for the administration of the Plan;


 


(k) to make, amend, suspend, waive and
rescind rules and regulations relating to the Plan;


 


(l) to appoint such agents as the Committee
may deem necessary or advisable to administer the Plan;


 


(m) to determine the terms and conditions
of all Award Agreements applicable to Eligible Persons (which need not be identical) and, with the consent of the Grantee, to amend
any such Award Agreement at any time, among other things, to permit transfers of such Awards to the extent permitted by the Plan;
provided that the consent of the Grantee shall not be required for any amendment (i) which does not adversely affect the rights
of the Grantee, or (ii) which is necessary or advisable (as determined by the Committee) to carry out the purpose of the Award
as a result of any new applicable law or change in an existing applicable law, or (iii) to the extent the Award Agreement
specifically permits amendment without consent;


 


(n) to cancel, with the consent of the
Grantee, outstanding Awards and to grant new Awards in substitution therefor;


 


(o) to impose such additional terms and
conditions upon the grant, exercise or retention of Awards as the Committee may, before or concurrently with the grant thereof,
deem appropriate, including limiting the percentage of Awards which may from time to time be exercised by a Grantee;


 


(p) to make adjustments in the terms and
conditions of, and the criteria in, Awards in recognition of unusual or nonrecurring events (including events described in Section 4.2)
affecting the Company or an Affiliate or the financial statements of the Company or an Affiliate, or in response to changes in
applicable laws, regulations or accounting principles;


 


(q) to correct any defect or supply any
omission or reconcile any inconsistency, and to construe and interpret the Plan, the rules and regulations, and Award Agreement
or any other instrument entered into or relating to an Award under the Plan; and


 


(r) to take any other action with respect
to any matters relating to the Plan for which it is responsible and to make all other decisions and determinations as may be required
under the terms of the Plan or as the Committee may deem necessary or advisable for the administration of the Plan.


 


Any action of the Committee with respect
to the Plan shall be final, conclusive and binding on all persons, including the Company, its Affiliates, any Grantee, any person
claiming any rights under the Plan from or through any Grantee, and stockholders, except to the extent the Committee may subsequently
modify, or take further action not consistent with, its prior action. If not specified in the Plan, the time at which the Committee
must or may make any determination shall be determined by the Committee, and any such determination may thereafter be modified
by the Committee. The express grant of any specific power to the Committee, and the taking of any action by the Committee, shall
not be construed as limiting any power or authority of the Committee. Subject to Section 3.1(b), the Committee may delegate
to officers of the Company or any Affiliate the authority, subject to such terms as the Committee shall determine, to perform specified
functions under the Plan.


 






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3.3 No Repricings. Notwithstanding
any provision in Section 3.2 to the contrary, the terms of any outstanding Option or SAR may not be amended: (i) to reduce
the Exercise Price of such Option or SAR, (ii) cancel any outstanding Option or SAR in exchange for other Options or SARs with
an Exercise Price that is less than the Exercise Price of the cancelled Option or SAR or for any cash payment (or Shares having
with a Fair Market Value) in an amount that exceeds the excess of the Fair Market Value of the Shares underlying such cancelled
Option or SAR over the aggregate Exercise Price of such Option or SAR or for any other Award, or (iii) take any other action with
respect to an Option or SAR that would be treated as a repricing under the rules and regulations on the principal securities exchange
on which the Shares are traded, in each case without stockholder approval; provided, however, that the restrictions set forth in
this Section 3.3, shall not apply (i) unless the Company has a class of stock that is registered under Section 12
of the Exchange Act or (ii) to any adjustment allowed under to Section 4.2.


 


ARTICLE 4.


SHARES SUBJECT TO THE PLAN


 


4.1 Number of Shares Available
for Grants. Subject to adjustment as provided in Section 4.2 and the share counting provisions in this Section 4.1, and
except as provided in Section 5.6(b), as of the Effective Date, the maximum number of Shares hereby reserved for delivery
pursuant to Awards granted under the Plan shall be 5,750,000 Shares, less one (1) Share for every one (1) Share underlying Awards
granted under the Plan after March 31, 2020 and prior to the Effective Date. Up to a maximum of 5,750,000 Shares may be delivered
pursuant to the exercise of Incentive Stock Options granted hereunder.


 


If any Shares subject to an Award granted
hereunder (other than a Substitute Award granted pursuant to Section 5.6(b)) are forfeited or such Award otherwise terminates
without payment or delivery of all or a portion of such Shares (including on payment in Shares on exercise of a SAR), the Shares
subject to such Award, to the extent of any such forfeiture or termination, shall again be available for grant under the Plan.
In the event that any Shares subject to an Award granted hereunder are withheld or applied as payment (either actually or by attestation)
in connection with the exercise of an Award or the withholding or payment of taxes related thereto (“Returned Shares”),
such Returned Shares will not be treated as having been delivered for purposes of determining the maximum number of Shares available
for grant under the Plan and shall again be treated as available for grant under the Plan.


 


Shares delivered pursuant to the Plan may
be, in whole or in part, authorized and unissued Shares, or treasury Shares, including Shares repurchased by the Company for purposes
of the Plan.


 


4.2 Adjustments in Authorized Shares
and Awards; Corporate Transaction, Liquidation or Dissolution.


 


(a) Adjustment in Authorized Shares
and Awards. In the event that the Committee determines that any dividend or other distribution (whether in the form of cash,
Shares, or other property), recapitalization, forward or reverse stock split, subdivision, consolidation or reduction of capital,
reorganization, merger, consolidation, scheme of arrangement, split-up, spin-off or combination involving the Company
or repurchase or exchange of Shares or other securities of the Company or other rights to purchase Shares or other securities of
the Company, or other similar corporate transaction or event affects the Shares such that any adjustment is determined by the Committee
to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available
under the Plan, then the Committee shall, in such manner as it may deem equitable, adjust any or all of (i) the number and
type of Shares (or other securities or property) with respect to which Awards may be granted, (ii) the number and type of
Shares (or other securities or property) subject to outstanding Awards, (iii) the Exercise Price with respect to any Option
or SAR or, if deemed appropriate, make provision for a cash payment to the holder of an outstanding Award, and (iv) the number
and kind of Shares of outstanding Restricted Shares, or the Shares underlying any other form of Award. Notwithstanding the foregoing,
no such adjustment shall be authorized with respect to any Options or SARs to the extent that such adjustment would cause the Option
or SAR to violate Section 424(a) of the Code or otherwise subject any Grantee to taxation under Section 409A of the Code;
and provided further that the number of Shares subject to any Award denominated in Shares shall always be a whole
number.


 






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(b) Merger, Consolidation or Similar
Corporate Transaction. In the event of a merger or consolidation of the Company with or into another corporation or a sale
of substantially all of the stock of the Company (a “Corporate Transaction”), unless an outstanding Award is assumed
by the Surviving Company or replaced with an equivalent Award granted by the Surviving Company in substitution for such outstanding
Award, the Committee shall cancel any outstanding Awards that are not vested and nonforfeitable as of the consummation of such
Corporate Transaction (unless the Committee accelerates the vesting of any such Awards) and with respect to any vested and nonforfeitable
Awards, the Committee may either (i) allow all Grantees to exercise such Awards of Options and SARs within a reasonable period
prior to the consummation of the Corporate Transaction and cancel any outstanding Options or SARs that remain unexercised upon
consummation of the Corporate Transaction, or (ii) cancel any or all of such outstanding Awards in exchange for a payment
(in cash, or in securities or other property) in an amount equal to the amount that the Grantee would have received (net of the
Exercise Price with respect to any Options or SARs) if such vested Awards were settled or distributed or such vested Options and
SARs were exercised immediately prior to the consummation of the Corporate Transaction. Notwithstanding the foregoing, if an Option
or SAR is not assumed by the Surviving Company or replaced with an equivalent Award issued by the Surviving Company and the Exercise
Price with respect to any outstanding Option or SAR exceeds the Fair Market Value of the Shares immediately prior to the consummation
of the Corporation Transaction, such Awards shall be cancelled without any payment to the Grantee.


 


(c) Liquidation or Dissolution
of the Company. In the event of the proposed dissolution or liquidation of the Company, each Award will terminate immediately
prior to the consummation of such proposed action, unless otherwise provided by the Committee. Additionally, the Committee may,
in the exercise of its sole discretion, cause Awards to be vested and non-forfeitable and cause any conditions on any
such Award to lapse, as to all or any part of such Award, including Shares as to which the Award would not otherwise be exercisable
or non-forfeitable and allow all Grantees to exercise such Awards of Options and SARs within a reasonable period prior
to the consummation of such proposed action. Any Awards that remain unexercised upon consummation of such proposed action shall
be cancelled.


 


(d) Deferred Compensation.
Notwithstanding the forgoing provisions of this Section 4.2, if an Award constitutes deferred compensation within the meaning
of Code Section 409A, no payment or settlement of such Award shall be made pursuant to Section 4.2(b) or (c), unless
the Corporate Transaction or the dissolution or liquidation of the Company, as applicable, constitutes a Change in Control.


 


ARTICLE 5.


ELIGIBILITY AND GENERAL CONDITIONS OF
AWARDS


 


5.1 Eligibility. The Committee
may in its discretion grant Awards to any Eligible Person, whether or not he or she has previously received an Award; provided,
however, that all Awards made to Non-Employee Directors shall be determined by the Board in its sole discretion.


 


5.2 Award Agreement. To the
extent not set forth in the Plan, the terms and conditions of each Award shall be set forth in an Award Agreement.


 


5.3 General Terms and Termination
of Affiliation. The Committee may impose on any Award or the exercise or settlement thereof, at the date of grant or, subject
to the provisions of Section 15.2, thereafter, such additional terms and conditions not inconsistent with the provisions of
the Plan as the Committee shall determine, including terms requiring forfeiture, acceleration or pro-rata acceleration
of Awards in the event of a Termination of Affiliation by the Grantee. Except as may be required under the Delaware General Corporation
Law, Awards may be granted for no consideration other than prior and future services. Except as set forth in an Award Agreement
or as otherwise determined by the Committee, (a) all Options and SARs that are not vested and exercisable at the time of a
Grantee’s Termination of Affiliation, and any other Awards that remain subject to a risk of forfeiture or which are not otherwise
vested at the time of the Grantee’s Termination of Affiliation shall be forfeited to the Company and (b) all outstanding
Options and SARs not previously exercised shall expire three months after the Grantee’s Termination of Affiliation.


 


5.4 Nontransferability of Awards.


 


(a) Each Award and each right under any
Award shall be exercisable only by the Grantee during the Grantee’s lifetime, or, if permissible under applicable law, by
the Grantee’s guardian or legal representative or by a transferee receiving such Award pursuant to a qualified domestic relations
order (a “QDRO”) as defined in the Code or Title I of the Employee Retirement Income Security Act of 1974, as amended,
or the rules thereunder.


 






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(b) No Award (prior to the time, if applicable,
Shares are delivered in respect of such Award), and no right under any Award, may be assigned, alienated, pledged, attached, sold
or otherwise transferred or encumbered by a Grantee otherwise than by will or by the laws of descent and distribution (or in the
case of Restricted Shares, to the Company) or pursuant to a QDRO, and any such purported assignment, alienation, pledge, attachment,
sale, transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate; provided that the designation
of a beneficiary to receive benefits in the event of the Grantee’s death shall not constitute an assignment, alienation,
pledge, attachment, sale, transfer or encumbrance.


 


(c) Notwithstanding subsections (a) and
(b) above, to the extent provided in the Award Agreement or as otherwise approved by the Committee, Options (other than Incentive
Stock Options) and Restricted Shares, may be transferred, without consideration, to a Permitted Transferee. For this purpose, a
“Permitted Transferee” in respect of any Grantee means any member of the Immediate Family of such Grantee, any trust
of which all of the primary beneficiaries are such Grantee or members of his or her Immediate Family, or any partnership (including
limited liability companies and similar entities) of which all of the partners or members are such Grantee or members of his or
her Immediate Family; and the “Immediate Family” of a Grantee means the Grantee’s spouse, children, stepchildren,
grandchildren, parents, stepparents, siblings, grandparents, nieces and nephews. Such Option may be exercised by such transferee
in accordance with the terms of the Award Agreement. If so determined by the Committee, a Grantee may, in the manner established
by the Committee, designate a beneficiary or beneficiaries to exercise the rights of the Grantee, and to receive any distribution
with respect to any Award upon the death of the Grantee. A transferee, beneficiary, guardian, legal representative or other person
claiming any rights under the Plan from or through any Grantee shall be subject to and consistent with the provisions of the Plan
and any applicable Award Agreement, except to the extent the Plan and Award Agreement otherwise provide with respect to such persons,
and to any additional restrictions or limitations deemed necessary or appropriate by the Committee.


 


(d) Nothing herein shall be construed
as requiring the Committee to honor a QDRO except to the extent required under applicable law.


 


5.5 Cancellation and Rescission
of Awards. Unless the Award Agreement specifies otherwise, the Committee may cancel, rescind, suspend, withhold, or otherwise
limit or restrict any unexercised Award at any time if the Grantee is not in compliance with all applicable provisions of the Award
Agreement and the Plan or if the Grantee has a Termination of Affiliation.


 


5.6 Stand-Alone, Tandem and Substitute
Awards.


 


(a) Awards granted under the Plan may,
in the discretion of the Committee, be granted either alone or in addition to, in tandem with, or in substitution for, any other
Award granted under the Plan unless such tandem or substitution Award would subject the Grantee to tax penalties imposed under
Section 409A of the Code. If an Award is granted in substitution for another Award or any non-Plan award or benefit,
the Committee shall require the surrender of such other Award or non-Plan award or benefit in consideration for the grant
of the new Award. Awards granted in addition to or in tandem with other Awards or non-Plan awards or benefits may be
granted either at the same time as or at a different time from the grant of such other Awards or non-Plan awards or benefits;
provided, however, that if any SAR is granted in tandem with an Incentive Stock Option, such SAR and Incentive Stock Option must
have the same Grant Date, Term and the Exercise Price of the SAR may not be less than the Exercise Price of the Incentive Stock
Option.


 


(b) The Committee may, in its discretion
and on such terms and conditions as the Committee considers appropriate in the circumstances, grant Awards under the Plan (“Substitute
Awards”) in substitution for stock and stock-based awards (“Acquired Entity Awards”) held by current or former
employees or non-employee directors of, or consultants to, another corporation or entity who become Eligible Persons
as the result of a merger or consolidation of the employing corporation or other entity (the “Acquired Entity”) with
the Company or an Affiliate or the acquisition by the Company or an Affiliate of property or stock of the Acquired Entity immediately
prior to such merger, consolidation or acquisition in order to preserve for the Grantee the economic value of all or a portion
of such Acquired Entity Award at such price as the Committee determines necessary to achieve preservation of economic value. The
limitations in Section 4.1 on the number of Shares reserved or available for grants shall not apply to Substitute Awards granted
under this Section 5.6(b).


 






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5.7 Compliance with Rule 16b-3.
The provisions of this Section 5.7will not apply unless and until the Company has a class of stock that is registered under
Section 12 of the Exchange Act.


 


(a) Six-Month Holding Period
Advice. Unless a Grantee could otherwise dispose of or exercise a derivative security or dispose of Shares delivered under
the Plan without incurring liability under Section 16(b) of the Exchange Act, the Committee may advise or require a Grantee
to comply with the following in order to avoid incurring liability under Section 16(b) of the Exchange Act: (i) at least
six months must elapse from the date of acquisition of a derivative security under the Plan to the date of disposition of the derivative
security (other than upon exercise or conversion) or its underlying equity security, and (ii) Shares granted or awarded under
the Plan other than upon exercise or conversion of a derivative security must be held for at least six months from the date of
grant of an Award.


 


(b) Reformation to Comply with
Exchange Act Rules. To the extent the Committee determines that a grant or other transaction by a Section 16 Person should
comply with applicable provisions of Rule 16b-3 (except for transactions exempted under alternative Exchange Act rules),
the Committee shall take such actions as necessary to make such grant or other transaction so comply, and if any provision of this
Plan or any Award Agreement relating to a given Award does not comply with the requirements of Rule 16b-3 as then applicable
to any such grant or transaction, such provision will be construed or deemed amended, if the Committee so determines, to the extent
necessary to conform to the then applicable requirements of Rule 16b-3.


 


(c) Rule 16b-3 Administration.
Any function relating to a Section 16 Person shall be performed solely by the Committee or the Board if necessary to ensure
compliance with applicable requirements of Rule 16b-3, to the extent the Committee determines that such compliance is
desired. Each member of the Committee or person acting on behalf of the Committee shall be entitled to, in good faith, rely or
act upon any report or other information furnished to him by any officer, manager or other employee of the Company or any Affiliate,
the Company’s independent certified public accountants or any executive compensation consultant or attorney or other professional
retained by the Company to assist in the administration of the Plan.


 


5.8 Deferral of Award Payouts.
The Committee may permit a Grantee to defer, or if and to the extent specified in an Award Agreement require the Grantee to defer,
receipt of the payment of cash or the delivery of Shares that would otherwise be due by virtue of the lapse or waiver of restrictions
with respect to Restricted Stock Units, the satisfaction of any requirements or goals with respect to Performance Units or Performance
Shares, the lapse or waiver of the deferral period for Deferred Stock, or the lapse or waiver of restrictions with respect to Other
Stock-Based Awards or Cash Incentive Awards. If the Committee permits such deferrals, the Committee shall establish rules and procedures
for making such deferral elections and for the payment of such deferrals, which shall conform in form and substance with applicable
regulations promulgated under Section 409A of the Code and Article 16 to ensure that the Grantee is not subjected to tax penalties
under Section 409A of the Code with respect to such deferrals. Except as otherwise provided in an Award Agreement, any payment
or any Shares that are subject to such deferral shall be made or delivered to the Grantee as specified in the Award Agreement or
pursuant to the Grantee’s deferral election.


 


ARTICLE 6.


STOCK OPTIONS


 


6.1 Grant of Options. Subject
to and consistent with the provisions of the Plan, Options may be granted to any Eligible Person in such number, and upon such
terms, and at any time and from time to time as shall be determined by the Committee.


 


6.2 Award Agreement. Each Option
grant shall be evidenced by an Award Agreement that shall specify the Exercise Price, the Term of the Option, the number of Shares
to which the Option pertains, the time or times at which such Option shall be exercisable and such other provisions as the Committee
shall determine.


 


6.3 Option Exercise Price.
The Exercise Price of an Option under this Plan shall be determined in the sole discretion of the Committee but may not be less
than 100% of the Fair Market Value of a Share on the Grant Date (other than in the case of Substitute Awards).


 






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6.4 Grant of Incentive Stock Options.
At the time of the grant of any Option, the Committee may in its discretion designate that such Option shall be made subject to
additional restrictions to permit it to qualify as an Incentive Stock Option. Any Option designated as an Incentive Stock Option:


 


(a) shall be granted only to an employee
of the Company or a Subsidiary Corporation;


 


(b) shall have an Exercise Price of not
less than 100% of the Fair Market Value of a Share on the Grant Date, and, if granted to a person who owns capital stock (including
stock treated as owned under Section 424(d) of the Code) possessing more than 10% of the total combined voting power of all
classes of capital stock of the Company or any Subsidiary Corporation (a “More Than 10% Owner”), have an Exercise Price
not less than 110% of the Fair Market Value of a Share on its Grant Date;


 


(c) shall be for a period of not more
than 10 years (five years if the Grantee is a More Than 10% Owner) from its Grant Date, and shall be subject to earlier termination
as provided herein or in the applicable Award Agreement;


 


(d) shall not have an aggregate Fair Market
Value (as of the Grant Date) of the Shares with respect to which Incentive Stock Options (whether granted under the Plan or any
other stock option plan of the Grantee’s employer or any parent or Subsidiary Corporation (“Other Plans”)) are
exercisable for the first time by such Grantee during any calendar year (“Current Grant”), determined in accordance
with the provisions of Section 422 of the Code, which exceeds $100,000 (the “$100,000 Limit”);


 


(e) shall, if the aggregate Fair Market
Value of the Shares (determined on the Grant Date) with respect to the Current Grant and all Incentive Stock Options previously
granted under the Plan and any Other Plans which are exercisable for the first time during a calendar year (“Prior Grants”)
would exceed the $100,000 Limit, be, as to the portion in excess of the $100,000 Limit, exercisable as a separate option that is
not an Incentive Stock Option at such date or dates as are provided in the Current Grant;


 


(f) shall require the Grantee to notify
the Committee of any disposition of any Shares delivered pursuant to the exercise of the Incentive Stock Option under the circumstances
described in Section 421(b) of the Code (relating to holding periods and certain disqualifying dispositions) (“Disqualifying
Disposition”) within 10 days of such a Disqualifying Disposition;


 


(g) shall by its terms not be assignable
or transferable other than by will or the laws of descent and distribution and may be exercised, during the Grantee’s lifetime,
only by the Grantee; provided, however, that the Grantee may, to the extent provided in the Plan in any manner specified by the
Committee, designate in writing a beneficiary to exercise his or her Incentive Stock Option after the Grantee’s death; and


 


(h) shall, if such Option nevertheless
fails to meet the foregoing requirements, or otherwise fails to meet the requirements of Section 422 of the Code for an Incentive
Stock Option, be treated for all purposes of this Plan, except as otherwise provided in subsections (d) and (e) above, as
an Option that is not an Incentive Stock Option.


 


Notwithstanding the foregoing and Section 3.2,
the Committee may, without the consent of the Grantee, at any time before the exercise of an Option (whether or not an Incentive
Stock Option), take any action necessary to prevent such Option from being treated as an Incentive Stock Option.


 


6.5 Payment of Exercise Price.
Except as otherwise provided in an Award Agreement, Options shall be exercised by the delivery of a written notice of exercise
to the Company, setting forth the number of Shares with respect to which the Option is to be exercised, accompanied by full payment
for the Shares made by any one or more of the following means:


 


(a) cash, personal check or wire transfer;


 


(b) with the approval of the Committee,
delivery of Common Stock owned by the Grantee prior to exercise, valued at Fair Market Value on the date of exercise;


 


(c) with the approval of the Committee,
Shares acquired upon the exercise of such Option, such Shares valued at Fair Market Value on the date of exercise;


 


(d) with the approval of the Committee,
Restricted Shares held by the Grantee prior to the exercise of the Option, valued at Fair Market Value on the date of exercise;
or


 






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(e) subject to applicable law (including
the prohibited loan provisions of Section 402 of the Sarbanes Oxley Act of 2002), through the sale of the Shares acquired
on exercise of the Option through a broker-dealer to whom the Grantee has submitted an irrevocable notice of exercise and irrevocable
instructions to deliver promptly to the Company the amount of sale proceeds sufficient to pay for such Shares, together with, if
requested by the Company, the amount of federal, state, local or foreign withholding taxes payable by Grantee by reason of such
exercise.


 


The Committee may in its discretion specify
that, if any Restricted Shares (“Tendered Restricted Shares”) are used to pay the Exercise Price, (x) all the
Shares acquired on exercise of the Option shall be subject to the same restrictions as the Tendered Restricted Shares, determined
as of the date of exercise of the Option, or (y) a number of Shares acquired on exercise of the Option equal to the number
of Tendered Restricted Shares shall be subject to the same restrictions as the Tendered Restricted Shares, determined as of the
date of exercise of the Option.


 


ARTICLE 7.


STOCK APPRECIATION RIGHTS


 


7.1 Issuance. Subject to and
consistent with the provisions of the Plan, the Committee, at any time and from time to time, may grant SARs to any Eligible Person
either alone or in addition to other Awards granted under the Plan. Such SARs may, but need not, be granted in connection with
a specific Option granted under Article 6. The Committee may impose such conditions or restrictions on the exercise of any SAR
as it shall deem appropriate.


 


7.2 Award Agreements. Each
SAR grant shall be evidenced by an Award Agreement in such form as the Committee may approve and shall contain such terms and conditions
not inconsistent with other provisions of the Plan as shall be determined from time to time by the Committee.


 


7.3 SAR Exercise Price. The
Exercise Price of a SAR shall be determined by the Committee in its sole discretion; provided that the Exercise Price shall not
be less than 100% of the Fair Market Value of a Share on the date of the grant of the SAR (other than in the case of Substitute
Awards).


 


7.4 Exercise and Payment. Upon
the exercise of an SAR, a Grantee shall be entitled to receive payment from the Company in an amount determined by multiplying:


 


(a) The excess of the Fair Market Value
of a Share on the date of exercise over the Exercise Price; by


 


(b) The number of Shares with respect
to which the SAR is exercised.


 


SARs shall be deemed exercised on the date
written notice of exercise in a form acceptable to the Committee is received by the Secretary of the Company. The Company shall
make payment in respect of any SAR within five (5) days of the date the SAR is exercised. Any payment by the Company in respect
of a SAR may be made in cash, Shares, other property, or any combination thereof, as the Committee, in its sole discretion, shall
determine or, to the extent permitted under the terms of the applicable Award Agreement, at the election of the Grantee.


 


ARTICLE 8.


RESTRICTED SHARES


 


8.1 Grant of Restricted Shares.
Subject to and consistent with the provisions of the Plan, the Committee, at any time and from time to time, may grant Restricted
Shares to any Eligible Person in such amounts as the Committee shall determine.


 


8.2 Award Agreement. Each grant
of Restricted Shares shall be evidenced by an Award Agreement that shall specify the Period(s) of Restriction, the number of Restricted
Shares granted, and such other provisions as the Committee shall determine. The Committee may impose such conditions and/or restrictions
on any Restricted Shares granted pursuant to the Plan as it may deem advisable, including restrictions based upon the achievement
of specific performance goals, time-based restrictions on vesting following the attainment of the performance goals, and/or restrictions
under applicable securities laws; provided that such conditions and/or restrictions may lapse, if so determined by the Committee,
in the event of the Grantee’s Termination of Affiliation due to death, Disability, or involuntary termination by the Company
or an Affiliate without Cause.


 






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8.3 Consideration for Restricted
Shares. The Committee shall determine the amount, if any, that a Grantee shall pay for Restricted Shares.


 


8.4 Effect of Forfeiture. If
Restricted Shares are forfeited, and if the Grantee was required to pay for such shares or acquired such Restricted Shares upon
the exercise of an Option, the Grantee shall be deemed to have resold such Restricted Shares to the Company at a price equal to
the lesser of (x) the amount paid by the Grantee for such Restricted Shares, or (y) the Fair Market Value of a Share
on the date of such forfeiture. The Company shall pay to the Grantee the deemed sale price as soon as is administratively practical.
Such Restricted Shares shall cease to be outstanding and shall no longer confer on the Grantee thereof any rights as a stockholder
of the Company, from and after the date of the event causing the forfeiture, whether or not the Grantee accepts the Company’s
tender of payment for such Restricted Shares.


 


8.5 Escrow; Legends. The Committee
may provide that the certificates for any Restricted Shares (x) shall be held (together with a stock power executed in blank
by the Grantee) in escrow by the Secretary of the Company until such Restricted Shares become nonforfeitable or are forfeited and/or
(y) shall bear an appropriate legend restricting the transfer of such Restricted Shares under the Plan. If any Restricted
Shares become nonforfeitable, the Company shall cause certificates for such shares to be delivered without such legend.


 


ARTICLE 9.


PERFORMANCE UNITS AND PERFORMANCE SHARES


 


9.1 Grant of Performance Units
and Performance Shares. Subject to and consistent with the provisions of the Plan, Performance Units or Performance Shares
may be granted to any Eligible Person in such amounts and upon such terms, and at any time and from time to time, as shall be determined
by the Committee.


 


9.2 Value/Performance Goals.
The Committee shall set performance goals in its discretion which, depending on the extent to which they are met, will determine
the number or value of Performance Units or Performance Shares that will be paid to the Grantee.


 


(a) Performance Unit. Each
Performance Unit shall have an initial value that is established by the Committee at the time of grant.


 


(b) Performance Share. Each
Performance Share shall have an initial value equal to the Fair Market Value of a Share on the date of grant.


 


9.3 Earning of Performance Units
and Performance Shares. After the applicable Performance Period has ended, the holder of Performance Units or Performance Shares
shall be entitled to payment based on the level of achievement of performance goals set by the Committee. At the discretion of
the Committee, the settlement of Performance Units or Performance Shares may be in cash, Shares of equivalent value, or in some
combination thereof, as set forth in the Award Agreement.


 


If a Grantee is promoted, demoted or transferred
to a different business unit of the Company during a Performance Period, then, to the extent the Committee determines that the
Award, the performance goals, or the Performance Period are no longer appropriate, the Committee may adjust, change, eliminate
or cancel the Award, the performance goals, or the applicable Performance Period, as it deems appropriate in order to make them
appropriate and comparable to the initial Award, the performance goals, or the Performance Period.


 


Subject to Article 11 and Section 18.6,
at the discretion of the Committee, a Grantee may be entitled to receive any dividends or Dividend Equivalents declared with respect
to Shares deliverable in connection with vested Performance Shares which have been earned, but not yet delivered to the Grantee.


 






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ARTICLE 10.


DEFERRED STOCK AND RESTRICTED STOCK UNITS


 


10.1 Grant of Deferred Stock and
Restricted Stock Units. Subject to and consistent with the provisions of the Plan, the Committee, at any time and from time
to time, may grant Deferred Stock and/or Restricted Stock Units to any Eligible Person, in such amount and upon such terms as the
Committee shall determine. Deferred Stock must conform in form and substance with applicable regulations promulgated under Section 409A
of the Code and with Article 16 to ensure that the Grantee is not subjected to tax penalties under Section 409A of the Code
with respect to such Deferred Stock.


 


10.2 Vesting and Delivery.


 


(a) Delivery with Respect to Deferred
Stock. Delivery of Shares subject to a Deferred Stock grant will occur upon expiration of the deferral period or upon the occurrence
of one or more of the distribution events described in Section 409A(a)(2) of the Code as specified by the Committee in the
Grantee’s Award Agreement for the Award of Deferred Stock. An Award of Deferred Stock may be subject to such substantial
risk of forfeiture conditions as the Committee may impose, which conditions may lapse at such times or upon the achievement of
such objectives as the Committee shall determine at the time of grant or thereafter. Unless otherwise determined by the Committee,
to the extent that the Grantee has a Termination of Affiliation while the Deferred Stock remains subject to a substantial risk
of forfeiture, such Deferred Shares shall be forfeited, unless the Committee determines that such substantial risk of forfeiture
shall lapse in the event of the Grantee’s Termination of Affiliation due to death, Disability, or involuntary termination
by the Company or an Affiliate without “cause.”


 


(b) Delivery with Respect to Restricted
Stock Units. Delivery of Shares subject to a grant of Restricted Stock Units shall occur no later than the 15th day
of the third month following the end of the taxable year of the Grantee or the fiscal year of the Company in which the Grantee’s
rights under such Restricted Stock Units are no longer subject to a substantial risk of forfeiture as defined in final regulations
under Section 409A of the Code. Unless otherwise determined by the Committee, to the extent that the Grantee has a Termination
of Affiliation while the Restricted Stock Units remains subject to a substantial risk of forfeiture, such Restricted Stock Units
shall be forfeited, unless the Committee determines that such substantial risk of forfeiture shall lapse in the event of the Grantee’s
Termination of Affiliation due to death, Disability, or involuntary termination by the Company or an Affiliate without “cause.”


 


10.3 Voting and Dividend Equivalent
Rights Attributable to Deferred Stock and Restricted Stock Units. A Grantee awarded Deferred Stock or Restricted Stock Units
will have no voting rights with respect to such Deferred Stock or Restricted Stock Units prior to the delivery of Shares in settlement
of such Deferred Stock and/or Restricted Stock Units. Unless otherwise determined by the Committee, a Grantee will have the rights
to receive Dividend Equivalents in respect of Deferred Stock and/or Restricted Stock Units, which Dividend Equivalents shall be
deemed reinvested in additional Shares of Deferred Stock or Restricted Stock Units, as applicable, which shall remain subject to
the same forfeiture conditions applicable to the Deferred Stock or Restricted Stock Units to which such Dividend Equivalents relate.


 


ARTICLE 11.


DIVIDEND EQUIVALENTS


 


The Committee is authorized to grant Awards
of Dividend Equivalents alone or in conjunction with other Awards. The Committee may provide that Dividend Equivalents shall be
paid or distributed when accrued or shall be deemed to have been reinvested in additional Shares or additional Awards or otherwise
reinvested subject to distribution at the same time and subject to the same conditions as the Award to which it relates; provided,
however, that any Dividend Equivalents granted in conjunction with any Award that is subject to forfeiture conditions shall remain
subject to the same forfeiture conditions applicable to the Award to which such Dividend Equivalents relate and no Dividend Equivalents
shall be granted in conjunction with any Options or SARs. The timing of payment or distribution of Dividend Equivalents must comply
with the requirements of Section 409A of the Code.


 


ARTICLE 12.


BONUS SHARES


 


Subject to the terms of the Plan, the Committee
may grant Bonus Shares to any Eligible Person, in such amount and upon such terms and at any time and from time to time as shall
be determined by the Committee.


 






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ARTICLE 13.


OTHER STOCK-BASED AWARDS


 


The Committee is authorized, subject to
limitations under applicable law, to grant such other Awards that are denominated or payable in, valued in whole or in part by
reference to, or otherwise based on, or related to, Shares, as deemed by the Committee to be consistent with the purposes of the
Plan, including Shares awarded which are not subject to any restrictions or conditions, convertible or exchangeable debt securities
or other rights convertible or exchangeable into Shares, and Awards valued by reference to the value of securities of or the performance
of specified Affiliates. Subject to and consistent with the provisions of the Plan, the Committee shall determine the terms and
conditions of such Awards. Except as provided by the Committee, Shares delivered pursuant to a purchase right granted under this
Article 13 shall be purchased for such consideration, paid for by such methods and in such forms, including cash, Shares, outstanding
Awards or other property, as the Committee shall determine.


 


ARTICLE 14.


NON-EMPLOYEE DIRECTOR AWARDS


 


Subject to the terms of the Plan, the Board
may grant Awards to any Non-Employee Director, in such amount and upon such terms and at any time and from time to time
as shall be determined by the full Board in its sole discretion. Except as otherwise provided in Section 5.6(b), a Non-Employee Director
may not be granted Awards for cash or Shares that together with any awards made outside of the Plan have a Fair Market Value (determined
as of the date of grant) in excess of $500,000 in a single calendar year.


 


ARTICLE 15.


AMENDMENT, MODIFICATION, AND TERMINATION


 


15.1 Amendment, Modification, and
Termination. Subject to Section 15.2, the Board may, at any time and from time to time, alter, amend, suspend, discontinue
or terminate the Plan in whole or in part without the approval of the Company’s stockholders, except that (a) any amendment
or alteration shall be subject to the approval of the Company’s stockholders if such stockholder approval is required by
any federal or state law or regulation or the rules of any stock exchange or automated quotation system on which the Shares may
then be listed or quoted, and (b) the Board may otherwise, in its discretion, determine to submit other such amendments or
alterations to stockholders for approval.


 


15.2 Awards Previously Granted.
Except as otherwise specifically permitted in the Plan or an Award Agreement, no termination, amendment, or modification of the
Plan shall adversely affect in any material way any Award previously granted under the Plan, without the written consent of the
Grantee of such Award.


 


ARTICLE 16.


COMPLIANCE WITH CODE SECTION 409A


 


16.1 Awards Subject to Code Section 409A.
The provisions of this Article 16 shall apply to any Award or portion thereof that is or becomes deferred compensation subject
to Code Section 409A (a “409A Award”), notwithstanding any provision to the contrary contained in the Plan or
the Award Agreement applicable to such Award.


 


16.2 Deferral and/or Distribution
Elections. Except as otherwise permitted or required by Code Section 409A, the following rules shall apply to any deferral
and/or elections as to the form or timing of distributions (each, an “Election”) that may be permitted or required
by the Committee with respect to a 409A Award:


 


(a) Any Election must be in writing and
specify the amount being deferred, and the time and form of distribution (i.e., lump sum or installments) as permitted by this
Plan. An Election may but need not specify whether payment will be made in cash, Shares or other property.


 






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(b) Any Election shall become irrevocable
as of the deadline specified by the Committee, which shall not be later than December 31 of the year preceding the year in
which services relating to the Award commence; provided, however, that if the Award qualifies as “performance-based compensation”
for purposes of Code Section 409A and is based on services performed over a period of at least twelve (12) months, then
the deadline may be no later than six (6) months prior to the end of such Performance Period.


 


(c) Unless otherwise provided by the Committee,
an Election shall continue in effect until a written election to revoke or change such Election is received by the Committee, prior
to the last day for making an Election for the subsequent year.


 


16.3 Subsequent Elections.
Except as otherwise permitted or required by Code Section 409A, any 409A Award which permits a subsequent Election to further
defer the distribution or change the form of distribution shall comply with the following requirements:


 


(a) No subsequent Election may take effect
until at least twelve (12) months after the date on which the subsequent Election is made;


 


(b) Each subsequent Election related to
a distribution upon separation from service, a specified time, or a Change in Control must result in a delay of the distribution
for a period of not less than five (5) years from the date such distribution would otherwise have been made; and


 


(c) No subsequent Election related to
a distribution to be made at a specified time or pursuant to a fixed schedule shall be made less than twelve (12) months prior
to the date the first scheduled payment would otherwise be made.


 


16.4 Distributions Pursuant to
Deferral Elections. Except as otherwise permitted or required by Code Section 409A, no distribution in settlement of a
409A Award may commence earlier than:


 


(a) Separation from Service;


 


(b) The date the Participant becomes Disabled
(as defined in Section 2.15(b);


 


(c) The Participant’s death;


 


(d) A specified time (or pursuant to a
fixed schedule) that is either (i) specified by the Committee upon the grant of the Award and set forth in the Award Agreement
or (ii) specified by the Grantee in an Election complying with the requirements of Section 16.2 and/or 16.3, as applicable;
or


 


(e) A change in ownership of the Company
or a substantial portion of its assets within the meaning of Treasury Regulation Section 1.409A-3(i)(5)(v) or (vii) or
a change in effective control of the Company within the meaning of Treasury Regulation Section 1.409A-3(i)(5)(vi) (a
“Change in Control”).


 


16.5 Six Month Delay. Notwithstanding
anything herein or in any Award Agreement or Election to the contrary, to the extent that distribution of a 409A Award is triggered
by a Grantee’s Separation from Service, if the Grantee is then a “specified employee” (as defined in Treasury
Regulation Section 1.409A-1(i)), no distribution may be made before the date which is six (6) months after
such Grantee’s Separation from Service, or, if earlier, the date of the Grantee’s death.


 


16.6 Death or Disability. Unless
the Award Agreement otherwise provides, if a Grantee dies or becomes Disabled before complete distribution of amounts payable upon
settlement of a 409A Award, such undistributed amounts, to the extent vested, shall be distributed as provided in the Participants
Election. If the Participant has made no Election with respect to distributions upon death or Disability, all such distributions
shall be paid in a lump sum within 90 days following the date of the Participant’s death or Disability.


 


16.7 No Acceleration of Distributions.
This Plan does not permit the acceleration of the time or schedule of any distribution under a 409A Award, except as provided by
Code Section 409A and/or applicable regulations or rulings issued thereunder.


 






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ARTICLE 17.


WITHHOLDING


 


17.1 Required Withholding.


 


(a) The Committee in its sole discretion
may provide that when taxes are to be withheld in connection with the exercise of an Option or SAR, or upon the lapse of restrictions
on Restricted Shares, or upon the transfer of Shares, or upon payment of any other benefit or right under this Plan (the date on
which such exercise occurs or such restrictions lapse or such payment of any other benefit or right occurs hereinafter referred
to as the “Tax Date”), the Grantee may elect to make payment for the withholding of federal, state and local taxes,
including Social Security and Medicare (“FICA”) taxes by one or a combination of the following methods:


 


(i) payment of an amount in
cash equal to the amount to be withheld (including cash obtained through the sale of the Shares acquired on exercise of an Option
or SAR, upon the lapse of restrictions on Restricted Shares, or upon the transfer of Shares, through a broker-dealer to whom the
Grantee has submitted an irrevocable instructions to deliver promptly to the Company, the amount to be withheld);


 


(ii) delivering part or all
of the amount to be withheld in the form of Common Stock valued at its Fair Market Value on the Tax Date;


 


(iii) requesting the Company
to withhold from those Shares that would otherwise be received upon exercise of the Option or SAR, upon the lapse of restrictions
on Restricted Stock, or upon the transfer of Shares, a number of Shares having a Fair Market Value on the Tax Date equal to the
amount to be withheld; or


 


(iv) withholding from any compensation
otherwise due to the Grantee.


 


The Committee in its sole discretion
may provide that the maximum amount of tax withholding upon exercise of an Option or SARs, upon the lapse of restrictions on Restricted
Shares, or upon the transfer of Shares, to be satisfied by withholding Shares upon exercise of such Option or SAR, upon the lapse
of restrictions on Restricted Shares, or upon the transfer of Shares, pursuant to clause (iii) above shall not exceed the
minimum amount of taxes, including FICA taxes, required to be withheld under federal, state and local law. An election by Grantee
under this subsection is irrevocable. Any fractional share amount and any additional withholding not paid by the withholding or
surrender of Shares must be paid in cash. If no timely election is made, the Grantee must deliver cash to satisfy all tax withholding
requirements.


 


(b) Any Grantee who makes a Disqualifying
Disposition (as defined in Section 6.4(f)) or an election under Section 83(b) of the Code shall remit to the Company
an amount sufficient to satisfy all resulting tax withholding requirements in the same manner as set forth in subsection (a).


 


17.2 Notification under Code Section 83(b).
If the Grantee, in connection with the exercise of any Option, or the grant of Restricted Shares, makes the election permitted
under Section 83(b) of the Code to include in such Grantee’s gross income in the year of transfer the amounts specified
in Section 83(b) of the Code, then such Grantee shall notify the Company of such election within 10 days of filing the notice
of the election with the Internal Revenue Service, in addition to any filing and notification required pursuant to regulations
issued under Section 83(b) of the Code. The Committee may, in connection with the grant of an Award or at any time thereafter,
prohibit a Grantee from making the election described above.


 


ARTICLE 18.


ADDITIONAL PROVISIONS


 


18.1 Successors. Subject to
Section 4.2(b), all obligations of the Company under the Plan with respect to Awards granted hereunder shall be binding on
any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation,
or otherwise of all or substantially all of the business and/or assets of the Company.


 


18.2 Severability. If any part
of the Plan is declared by any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity shall
not invalidate any other part of the Plan. Any Section or part of a Section so declared to be unlawful or invalid shall, if possible,
be construed in a manner which will give effect to the terms of such Section or part of a Section to the fullest extent possible
while remaining lawful and valid.


 






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18.3 Requirements of Law. The
granting of Awards and the delivery of Shares under the Plan shall be subject to all applicable laws, rules, and regulations, and
to such approvals by any governmental agencies or national securities exchanges as may be required. Notwithstanding any provision
of the Plan or any Award, Grantees shall not be entitled to exercise, or receive benefits under, any Award, and the Company (and
any Affiliate) shall not be obligated to deliver any Shares or deliver benefits to a Grantee, if such exercise or delivery would
constitute a violation by the Grantee or the Company of any applicable law or regulation.


 


18.4 Securities Law Compliance.


 


(a) If the Committee deems it necessary
to comply with any applicable securities law, or the requirements of any stock exchange upon which Shares may be listed, the Committee
may impose any restriction on Awards or Shares acquired pursuant to Awards under the Plan as it may deem advisable. In addition,
if requested by the Company and any underwriter engaged by the Company, Shares acquired pursuant to Awards may not be sold or otherwise
transferred or disposed of for such period following the effective date of any registration statement of the Company filed under
the Securities Act as the Company or such underwriter shall specify reasonably and in good faith, not to exceed 180 days in the
case of the Company’s initial public offering or 90 days in the case of any other public offering. All certificates for Shares
delivered under the Plan pursuant to any Award or the exercise thereof shall be subject to such stop transfer orders and other
restrictions as the Committee may deem advisable under the rules, regulations and other requirements of the SEC, any stock exchange
upon which Shares are then listed, any applicable securities law, and the Committee may cause a legend or legends to be put on
any such certificates to make appropriate reference to such restrictions. If so requested by the Company, the Grantee shall make
a written representation to the Company that he or she will not sell or offer to sell any Shares unless a registration statement
shall be in effect with respect to such Shares under the Securities Act of 1933, as amended, and any applicable state securities
law or unless he or she shall have furnished to the Company, in form and substance satisfactory to the Company, that such registration
is not required.


 


(b) If the Committee determines that the
exercise or nonforfeitability of, or delivery of benefits pursuant to, any Award would violate any applicable provision of securities
laws or the listing requirements of any national securities exchange or national market system on which are listed any of the Company’s
equity securities, then the Committee may postpone any such exercise, nonforfeitability or delivery, as applicable, but the Company
shall use all reasonable efforts to cause such exercise, nonforfeitability or delivery to comply with all such provisions at the
earliest practicable date.


 


18.5 Forfeiture Events. Notwithstanding
any provisions herein to the contrary, the Committee shall have the authority to determine (and may so provide in any Award Agreement)
that a Grantee’s (including his or her estate’s, beneficiary’s or transferee’s) rights (including the right
to exercise any Option or SAR), payments and benefits with respect to any Award shall be subject to reduction, cancellation, forfeiture
or recoupment (to the extent permitted by applicable law) in the event of the Participant’s termination for Cause; serious
misconduct; violation of the Company’s or an Affiliate’s policies; breach of fiduciary duty; unauthorized disclosure
of any trade secret or confidential information of the Company or an Affiliate; breach of applicable noncompetition, nonsolicitation,
confidentiality or other restrictive covenants; or other conduct or activity that is in competition with the business of the Company
or an Affiliate, or otherwise detrimental to the business, reputation or interests of the Company and/or an Affiliate; or upon
the occurrence of certain events specified in the applicable Award Agreement (in any such case, whether or not the Grantee is then
an Employee or Non-Employee Director). The determination of whether a Grantee’s conduct, activities or circumstances
are described in the immediately preceding sentence shall be made by the Committee in its discretion, and pending any such determination,
the Committee shall have the authority to suspend the exercise, payment, delivery or settlement of all or any portion of such Grantee’s
outstanding Awards pending any investigation of the matter.


 


18.6 No Rights as a Stockholder.
No Grantee shall have any rights as a stockholder of the Company with respect to the Shares (other than Restricted Shares) which
may be deliverable upon exercise or payment of such Award until such Shares have been delivered to him or her. Restricted Shares,
whether held by a Grantee or in escrow by the Secretary of the Company, shall confer on the Grantee all rights of a stockholder
of the Company, except as otherwise provided in the Plan or Award Agreement. At the time of a grant of Restricted Shares, the Committee
may require the payment of cash dividends thereon to be deferred and, if the Committee so determines, reinvested in additional
Restricted Shares. Stock dividends and deferred cash dividends issued with respect to Restricted Shares shall be subject to the
same restrictions and other terms as apply to the Restricted Shares with respect to which such dividends are issued. The Committee
may in its discretion provide for payment of interest on deferred cash dividends.


 






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18.7 Nature of Payments. Unless
otherwise specified in the Award Agreement, Awards shall be special incentive payments to the Grantee and shall not be taken into
account in computing the amount of salary or compensation of the Grantee for purposes of determining any pension, retirement, death
or other benefit under (a) any pension, retirement, profit sharing, bonus, insurance or other employee benefit plan of the
Company or any Affiliate, except as such plan shall otherwise expressly provide, or (b) any agreement between (i) the
Company or any Affiliate and (ii) the Grantee, except as such agreement shall otherwise expressly provide.


 


18.8 Non-Exclusivity of Plan.
Neither the adoption of the Plan by the Board nor its submission to the stockholders of the Company for approval shall be construed
as creating any limitations on the power of the Board to adopt such other compensatory arrangements for employees or Non-Employee Directors
as it may deem desirable.


 


18.9 Governing Law. The Plan,
and all agreements hereunder, shall be construed in accordance with and governed by the laws of the State of Delaware, other than
its laws respecting choice or conflicts of law rule or principles that might otherwise refer construction or interpretation of
the Plan to the substantive law of another jurisdiction. Unless otherwise provided in the Award Agreement, Participants are deemed
to submit to the exclusive jurisdiction and venue of the federal or state courts of the State of Delaware, to resolve any and all
issues that may arise out of or relate to the Plan or any related Award Agreement.


 


18.10 Unfunded Status of Awards;
Creation of Trusts. The Plan is intended to constitute an “unfunded” plan for incentive and deferred compensation.
With respect to any payments not yet made to a Grantee pursuant to an Award, nothing contained in the Plan or any Award Agreement
shall give any such Grantee any rights that are greater than those of a general creditor of the Company; provided, however, that
the Committee may authorize the creation of trusts or make other arrangements to meet the Company’s obligations under the
Plan to deliver cash, Shares or other property pursuant to any Award which trusts or other arrangements shall be consistent with
the “unfunded” status of the Plan unless the Committee otherwise determines.


 


18.11 Affiliation. Nothing
in the Plan or an Award Agreement shall interfere with or limit in any way the right of the Company or any Affiliate to terminate
any Grantee’s employment or consulting contract at any time, nor confer upon any Grantee the right to continue in the employ
of or as an officer of or as a consultant to or Non-Employee Director of the Company or any Affiliate.


 


18.12 Participation. No employee
or officer shall have the right to be selected to receive an Award under this Plan or, having been so selected, to be selected
to receive a future Award.


 


18.13 Military Service. Awards
shall be administered in accordance with Section 414(u) of the Code and the Uniformed Services Employment and Reemployment
Rights Act of 1994.


 


18.14 Construction. The following
rules of construction will apply to the Plan: (a) the word “or” is disjunctive but not necessarily exclusive,
and (b) words in the singular include the plural, words in the plural include the singular, and words in the neuter gender
include the masculine and feminine genders and words in the masculine or feminine gender include the other neuter genders.


 


18.15 Headings. The headings
of articles and sections are included solely for convenience of reference, and if there is any conflict between such headings and
the text of this Plan, the text shall control.


 


18.16 Obligations. Unless otherwise
specified in the Award Agreement, the obligation to deliver, pay or transfer any amount of money or other property pursuant to
Awards under this Plan shall be the sole obligation of a Grantee’s employer; provided that the obligation to deliver or transfer
any Shares pursuant to Awards under this Plan shall be the sole obligation of the Company.


 


18.17 No Right to Continue as Director.
Nothing in the Plan or any Award Agreement shall confer upon any Non-Employee Director the right to continue to serve
as a director of the Company.


 


18.18 Stockholder Approval.
All Incentive Stock Options granted on or after the Effective Date and prior to the date the Company’s stockholders approve
the Plan are expressly conditioned upon and subject to approval of the Plan by the Company’s stockholders.


 


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