EXHIBIT 10.1





 


KAIVAL
BRANDS INNOVATIONS GROUP, INC.

2020 STOCK AND INCENTIVE COMPENSATION PLAN 


AMENDED
AND RESTATED AS OF MAY 23, 2022


 


1.       Purpose
of the Plan.


 


The
purpose of this Plan is to enhance shareholder value by linking the compensation of officers, directors, key employees and consultants
of the Company to increases in the price of Kaival Brands Innovations Group, Inc. common stock and the achievement of other performance
objectives, and to encourage ownership in the Company by key personnel whose long-term employment is considered essential to the Company’s
continued progress and success. The Plan is also intended to assist the Company in the recruitment of new employees and to motivate,
retain and encourage such employees and directors to act in the shareholders’ interest and share in the Company’s success.
In addition, the purpose of this amended and restated Plan is to incorporate the ability to offer Employees options to purchase the Company’s
Shares that qualify as Incentive Stock Options, subject to the approval of the shareholders of the Company.


 


2.       Definitions.


 


As
used herein, the following definitions shall apply:


 


   (a)
“Administrator” means the Board, any Committee or such delegates as shall be administering the Plan in accordance
with Section 4 of the Plan.


 


   (b)
“Affiliate” means any Subsidiary or other entity that is directly or indirectly controlled by the Company or any entity
in which the Company has a significant ownership interest as determined by the Administrator. The Administrator shall, in its sole discretion,
determine which entities are classified as Affiliates and designated as eligible to participate in this Plan.


 


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


 


   (d)
“Award” means a Stock Award, Option, Stock Appreciation Right, Stock Unit, or Other Stock-Based Award granted in accordance
with the terms of the Plan, or any other property (including cash) granted pursuant to the provisions of the Plan.


 


   (e)
“Awardee” means an Employee, Director or Consultant who has been granted an Award under the Plan.


 


   (f)
“Award Agreement” means a Stock Award Agreement, Option Agreement, Stock Appreciation Right Agreement, Restricted
Stock Unit Agreement or Other Stock-Based Award Agreement, which may be in written or electronic format, in such form and with such terms
as may be specified by the Administrator, evidencing the terms and conditions of an individual Award. Each Award Agreement is subject
to the terms and conditions of the Plan. The Award Agreement shall be delivered to the Participant receiving such Award upon, or as promptly
as is reasonably practicable following, the grant of such Award. The effectiveness of an Award shall not be subject to the Award Agreement’s
being signed by the Company and/or the Participant receiving the Award unless specifically so provided in the Award Agreement.


 



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   (g) “Board”
means the Board of Directors of the Company.


 


   (h) “Change
of Control” shall mean, except as otherwise provided in an Award Agreement, one of the following shall have taken place after
the date of this Agreement:


 


(i)
any one person, or group of owners of another corporation who, acting together through a merger, consolidation, purchase, acquisition
of stock or the like (a “Group”), acquires ownership of Shares of the Company that, together with the Shares held by such
person or Group, constitutes more than fifty percent (50%) of the total fair market value or total voting power of the Shares of the
Company (or other voting securities of the Company then outstanding). However, if such person or Group is considered to own more than
fifty percent (50%) of the total fair market value or total voting power of the Shares (or other voting securities of the Company then
outstanding) before this transfer of the Company’s Shares (or other voting securities of the Company then outstanding), the acquisition
of additional Shares (or other voting securities of the Company then outstanding) by the same person or Group shall not be considered
to cause a Change of Control of the Company; or


 


(ii)
any one person or Group acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition
by such person or persons) ownership of Shares (or other voting securities of the Company then outstanding) of the Company possessing
thirty percent (30%) or more of the total voting power of the Shares (or other voting securities then outstanding) of the Company where
such person or Group is not merely acquiring additional control of the Company; or


 


(iii)
a majority of the members of the Company’s Board is replaced during any twelve (12) month period by directors whose appointment
or election is not endorsed by a majority of the members of the Company’s Board prior to the date of the appointment or election
(the “Incumbent Board”), but excluding, for purposes of determining whether a majority of the Incumbent Board has endorsed
any candidate for election to the Board, any individual whose initial assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents
by or on behalf of a person or Group other than the Company’s Board; or


 


(iv)
any one person or Group acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition
by such person or Group) all or substantially all of the assets from the Company that have a total gross fair market value equal to or
more than forty percent (40%) of the total fair market value of all assets of the Company immediately prior to such acquisition or acquisitions.
For this purpose, gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of,
determined without regard to any liabilities associated with such assets. A transfer of assets by the Company will not result in a Change
of Control if the assets are transferred to:


 






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	 	(1)	a stockholder of the Company (immediately before the asset transfer) in exchange for or with respect to its stock;
	 	 	 
	 	(2)	an entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by the Company immediately after the transfer of assets;
	 	 	 
	 	(3)	a person or Group that owns, directly or indirectly, fifty percent (50%) or more of the total value or voting power of all the outstanding stock of the Company; or
	 	 	 
	 	(4)	an entity, at least fifty percent (50%) of the total value or voting power of which is owned directly or indirectly, by a person described in subparagraph (h)(i), above; or




 


(v)
Shareholders of the Company approve a plan of complete liquidation or dissolution of the Company.


 


Notwithstanding
the foregoing, if any payment or distribution event applicable to an Award is subject to the requirements of Section 409A(a)(2)(A) of
the Code, the determination of the occurrence of a Change of Control shall be governed by applicable provisions of Section 409A(a)(2)(A)
of the Code and regulations and rulings issued thereunder for purposes of determining whether such payment or distribution may then occur.


 


   (i)
“Code” means the United States Internal Revenue Code of 1986, as amended, and any successor thereto, the Treasury
Regulations thereunder and other relevant interpretive guidance issued by the Internal Revenue Service or the Treasury Department. Reference
to any specific section of the Code shall be deemed to include such regulations and guidance, as well as any successor provision of the
Code.


 


   (j)
“Committee” means a committee of Directors appointed by the Board in accordance with Section 4 of the Plan or, in
the absence of any such special appointment, the Compensation Committee of the Board. If there is no Compensation Committee, the full
Board shall constitute the Committee.


 


   (k)
“Common Shares” means the Common Stock of the Company, $.001 par value, or any security of the Company issued in substitution,
exchange or lieu thereof.


 


   (l)
“Company” means Kaival Brands Innovations Group, Inc., a Delaware corporation, or, except as utilized in the definition
of Change of Control, its successor.


 


   (m)
“Consultant” means an individual providing services to the Company or any of its Affiliates as an independent contractor,
and includes prospective consultants who have accepted offers of consultancy for the Company or any of its Affiliates, so long as such
person (i) renders bona fide services that are not in connection with the offer and sale of the Company’s securities in a capital-raising
transaction, (ii) does not directly or indirectly promote or maintain a market for the Company’s securities, and (iii) otherwise
qualifies as a consultant under the applicable rules of the SEC for registration of shares of stock on a Form S-8 registration statement.


 


   (n)
“Conversion Award” has the meaning set forth in Section 4(b)(xii) of the Plan.


 


   (o)
“Director” means a member of the Board. Any Director who does not serve as an employee of the Company is referred
to herein as a “Non-employee Director.”


 



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   (p)
“Disability” means (i) “Disability” as defined in any employment, consulting or similar agreement to which
the Participant is a party, or (ii) if there is no such agreement or it does not define “Disability,” (A) permanent and total
disability as determined under the Company’s long-term disability plan applicable to the Participant, or (B) if there is no such
plan applicable to the Participant or the Committee determines otherwise in an applicable Award Agreement, “Disability” shall
mean the Participant 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 which has lasted or can be expected to last for a continuous period of not less
than 12 months, as determined by the Committee. Notwithstanding the above, with respect to an Incentive Stock Option, Disability shall
mean permanent and total disability as defined in Section 22(e)(3) of the Code and, with respect to any Award that constitutes “nonqualified
deferred compensation” within the meaning of Section 409A of the Code, the foregoing definition shall apply for purposes of vesting
of such Award, provided that such Award shall not be settled until the earliest of: (x) the Participant’s “disability”
within the meaning of Section 409A of the Code, (y) the Participant’s “separation from service” within the meaning
of Section 409A of the Code and (z) the date such Award would otherwise be settled pursuant to the terms of the Award Agreement.


 


   (q)
“Disaffiliation” means a Subsidiary’s or Affiliate’s ceasing to be a Subsidiary or Affiliate for any reason
(including, without limitation, as a result of a public offering, or a spin-off or sale by the Company, of the stock of the Subsidiary
or Affiliate) or a sale of a division of the Company and its Affiliates.


 


   (r)
“Employee” means a regular, active employee of the Company or any Affiliate, including an Officer or Director who
is also a regular, active employee of the Company or any Affiliate. The Administrator shall determine whether the Chairman of the Board
qualifies as an “Employee.” For any and all purposes under the Plan, the term “Employee” shall not include a
person hired as a leased employee, Consultant or a person otherwise designated by the Administrator, the Company or an Affiliate at the
time of hire as not eligible to participate in or receive benefits under the Plan or not on the payroll, even if such ineligible person
is subsequently determined to be a common law employee of the Company or an Affiliate or otherwise an employee by any governmental or
judicial authority. Unless otherwise determined by the Administrator in its sole discretion, for purposes of the Plan, an Employee shall
be considered to have terminated employment and to have ceased to be an Employee if his or her employer ceases to be an Affiliate, even
if he or she continues to be employed by such employer.


 


   (s)
“Exchange Act” means the United States Securities Exchange Act of 1934, as amended and any successor thereto.


 


   (t)
“Fair Market Value” means the closing price for the Common Shares reported on a consolidated basis on the primary
national securities exchange on which such Common Shares are traded on the date of measurement, or if the Common Shares were not traded
on such measurement date, then on the next preceding date on which Common Shares were traded, all as reported by such source as the Committee
may select. If the Common Shares are not listed on a national securities exchange, Fair Market Value shall be determined by the Committee
in its good faith discretion, taking into account, to the extent appropriate, the requirements of Section 409A of the Code and bid and
offered prices on any applicable over the counter market.


 


   (u)
“Grant Date” means, with respect to each Award, the date upon which the Award is granted to an Awardee pursuant to
this Plan, which may be a designated future date as of which such Award will be effective, as determined by the Committee.


 






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   (v)
“Incentive Stock Option” means an Option that is identified in the Option Agreement as intended to qualify as an incentive
stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder, and that actually does so qualify.


 


   (w)
“Nonqualified Stock Option” means an Option that is not an Incentive Stock Option.


 


   (x)
“Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and
the rules and regulations promulgated thereunder.


 


   (y)
“Option” means a right granted under Section 8 of the Plan to purchase a number of Shares at such exercise price,
at such times, and on such other terms and conditions as are specified in the agreement or other documents evidencing the Award (the
“Option Agreement”). Both Incentive Stock Options and Nonqualified Stock Options may be granted under the Plan.


 


   (z)
“Other Stock-Based Award” means an Award granted pursuant to Section 12 of the Plan on such terms and conditions as
are specified in the agreement or other documents evidencing the Award (the “Other Stock-Based Award Agreement”).


 


   (aa)
“Participant” means the Awardee or any person (including any estate) to whom an Award has been assigned or transferred
as permitted hereunder.


 


   (bb)
“Performance Criteria” shall have the meaning set forth in Section 13(b) of the Plan.


 


   (cc)
“Plan” means this 2020 Stock and Incentive Compensation Plan, as set forth herein and as hereafter amended from time
to time.


 


   (dd)
“Securities Act” means the United States Securities Act of 1933, as amended.


 


   (ee)
“Share” means a Common Share, as adjusted in accordance with Section 15 of the Plan.


 


   (ff)
“Stock Appreciation Right” means a right granted under Section 10 of the Plan on such terms and conditions as are
specified in the agreement or other documents evidencing the Award (the “Stock Appreciation Right Agreement”).


 


   (gg)
“Stock Award” means an award or issuance of Shares made under Section 11 of the Plan, the grant, issuance, retention,
vesting and/or transferability of which is subject during specified periods of time to such conditions (including, without limitation,
continued employment or performance conditions) and terms as are expressed in the agreement or other documents evidencing the Award (the
“Stock Award Agreement”).


 


   (hh)
“Stock Unit” means a bookkeeping entry representing an amount equivalent to the Fair Market Value of one Share, payable
in cash, property or Shares. Stock Units represent an unfunded and unsecured obligation of the Company, except as otherwise provided
for by the Administrator.


 


   (ii)
“Stock Unit Award” means an award or issuance of Stock Units made under Section 12 of the Plan, the grant, issuance,
retention, vesting and/or transferability of which is subject during specified periods of time to such conditions (including, without
limitation, continued employment or performance conditions) and terms as are expressed in the agreement or other documents evidencing
the Award (the “Stock Unit Award Agreement”).


 



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   (jj)
“Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the
Company, provided each company in the unbroken chain (other than the Company) owns, at the time of determination, stck possessing 50%
or more of the total combined voting power of all classes of stock, in one of the other corporations in such chain.


 


   (kk)
“Termination for Cause” means, unless otherwise provided in an Award Agreement, Termination of Employment on account
of any act of fraud or intentional misrepresentation or embezzlement, misappropriation or conversion of assets of the Company or any
Affiliate, or the intentional and repeated violation of the written policies or procedures of the Company, provided that, for an Employee
who is party to an individual severance or employment agreement defining Cause, “Cause” shall have the meaning set forth
in such agreement except as may be otherwise provided in such agreement. For purposes of this Plan, a Participant’s Termination
of Employment shall be deemed to be a Termination for Cause if, after the Participant’s employment has terminated, facts and circumstances
are discovered that would have justified, in the opinion of the Committee, a Termination for Cause.


 


   (ll)
“Termination of Employment” means, for purposes of this Plan, unless otherwise determined by the Administrator, ceasing
to be an Employee (as determined in accordance with Section 3401(c) of the Code and the regulations promulgated thereunder) of the Company
and any of its Subsidiaries or Affiliates. Unless otherwise determined by the Committee in the terms of an Award Agreement or otherwise,
if a Participant’s employment with the Company and its Affiliates terminates but such Participant continues to provide services
to the Company and its Affiliates in a Non-employee Director capacity, such change in status shall not be deemed a Termination of Employment.
A Participant employed by, or performing services for, a Subsidiary or an Affiliate or a division of the Company and its Affiliates shall
be deemed to incur a Termination of Employment if, as a result of a Disaffiliation, such Subsidiary, Affiliate, or division ceases to
be a Subsidiary, Affiliate or division, as the case may be, and the Participant does not immediately thereafter become an Employee of
(or service provider for), or member of the board of directors of, the Company or another Subsidiary or Affiliate. Temporary absences
from employment because of illness, vacation or leave of absence and transfers among the Company and its Subsidiaries and Affiliates
shall not be considered Terminations of Employment. In addition, Termination of Employment shall mean a “separation from service”
as defined in regulations issued under Code Section 409A whenever necessary to ensure compliance therewith for any payment or settlement
of a benefit conferred under this Plan that is subject to such Code section, and, for such purposes, shall be determined based upon a
reduction in the bona fide level of services performed to a level equal to twenty percent (20%) or less of the average level of services
performed by the Employee during the immediately preceding 36-month period.


 


3.        Stock
Subject to the Plan.


 


   (a)
Aggregate Limit. Subject to the provisions of Section 15(a) of the Plan, the maximum aggregate number of Shares which may be subject
to or delivered under Awards granted under the Plan is 15,000,000 Shares. Shares subject to or delivered under Conversion Awards shall
not reduce the aggregate number of Shares which may be subject to or delivered under Awards granted under this Plan. The Shares issued
under the Plan may be either Shares reacquired by the Company, including Shares purchased in the open market, or authorized but unissued
Shares.


 


   (b)
Code Section 422 Limits; Limit on Awards to Directors. Subject to the provisions of Section 15(a) of the Plan, the aggregate number
of Shares that may be subject to all Incentive Stock Options granted under the Plan shall not exceed the total aggregate number of Shares
that may be subject to or delivered under Awards under the Plan, as the same may be amended from time to time. Notwithstanding any other
provision of the Plan to the contrary, the aggregate grant date fair value (computed as of the date of grant in accordance with applicable
financial accounting rules) of all Awards granted to any Non-employee Director during any single calendar year shall not exceed 125,000
Shares.


 



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   (c)
Share Counting Rules.


 


(i)
For purposes of this Section 3 of the Plan, Shares subject to Awards that have been canceled, expired, settled in cash, or not issued
or forfeited for any reason (in whole or in part) shall not reduce the aggregate number of Shares which may be subject to or delivered
under Awards granted under this Plan and shall be available for future Awards granted under this Plan.


 


(ii)
Shares subject to Awards that have been retained by the Company in payment or satisfaction of the purchase price of an Award or the tax
withholding obligation of an Awardee, and Shares that have been delivered (either actually or constructively by attestation) to the Company
in payment or satisfaction of the purchase price of an Award or the tax withholding obligation of an Awardee, shall again be available
for grant under the Plan.


 


(iii)
Conversion Awards shall not reduce the Shares authorized for grant under the Plan or the limitations on Awards to a Participant under
subsection (b), above, nor shall Shares subject to a Conversion Award again be available for an Award under the Plan as provided in this
subsection (c).


 


4.        Administration
of the Plan.


 


   (a)
Procedure.


 


(i)
Multiple Administrative Bodies. The Plan shall be administered by the Board, a Committee designated by the Board to so administer
this Plan and/or their respective delegates.


 


(ii)
Rule 16b-3. To the extent desirable to qualify transactions hereunder as exempt under Rule 16b-3 promulgated under the Exchange
Act (“Rule 16b-3”), Awards to Officers and Directors shall be made by the entire Board or a Committee of two or more “non-employee
directors” within the meaning of Rule 16b-3.


 


(iii)
Other Administration. To the extent required by the rules of the principal U.S. national securities exchange on which the Shares
are traded, if applicable, the members of the Committee shall also qualify as “independent directors” as set forth in such
rules. Except to the extent prohibited by Applicable Law, the Board or a Committee may delegate to a Committee of one or more Directors
or to authorized officers of the Company the power to approve Awards to persons eligible to receive Awards under the Plan who are not
subject to Section 16 of the Exchange Act.


 


(iv)
Awards to Directors. The Board shall have the power and authority to grant Awards to Non-employee Directors, including the authority
to determine the number and type of awards to be granted; determine the terms and conditions, not inconsistent with the terms of this
Plan, of any award; and to take any other actions the Board considers appropriate in connection with the administration of the Plan.


 



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(v)
Delegation of Authority for the Day-to-Day Administration of the Plan. Except to the extent prohibited by Applicable Law, the
Administrator may delegate to one or more individuals the day-to-day administration of the Plan and any of the functions assigned to
it in this Plan. Such delegation may be revoked at any time.


 


(b)
Powers of the Administrator. Subject to the provisions of the Plan and, in the case of a Committee or delegates acting as the
Administrator, subject to the specific duties delegated to such Committee or delegates, the Administrator shall have the authority, in
its discretion:


 


(i)
to select the Non-employee Directors, Consultants and Employees of the Company or its Affiliates to whom Awards are to be granted hereunder;


 


(ii)
to determine the number of Common Shares to be covered by each Award granted hereunder;


 


(iii)
to determine the type of Award to be granted to the selected Employees,

Consultants and Non-employee Directors;


 


(iv)
to approve forms of Award Agreements;


 


(v)
to determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder. Such terms and conditions
include, but are not limited to, the exercise and/or purchase price, the time or times when an Award may be exercised (which may or may
not be based on Performance Criteria), the vesting schedule, any vesting and/or exercisability provisions, terms regarding acceleration
of Awards or waiver of forfeiture restrictions, the acceptable forms of consideration for payment for an Award, the term, and any restriction
or limitation regarding any Award or the Shares relating thereto, based in each case on such factors as the Administrator, in its sole
discretion, shall determine and may be established at the time an Award is granted or thereafter;


 


(vi)
to correct administrative errors;


 


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


 


(viii)
to adopt rules and procedures relating to the operation and administration of the Plan to accommodate the specific requirements of local
laws and procedures. Without limiting the generality of the foregoing, the Administrator is specifically authorized (A) to adopt rules
and procedures regarding the conversion of local currency, the shift of tax liability from employer to employee (where legally permitted)
and withholding procedures and handling of stock certificates which vary with local requirements, and (B) to adopt sub-plans and Plan
addenda as the Administrator deems desirable, to accommodate foreign laws, regulations and practice;


 


(ix)
to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans and
Plan addenda;


 


(x)
to modify or amend each Award, including, but not limited to, the acceleration of vesting and/or exercisability, provided, however, that
any such modification or amendment (A) is subject to the minimum vesting provisions under the Plan, if any, and the plan amendment provisions
set forth in Section 16 of the Plan, and (B) may not materially impair any outstanding Award unless agreed to in writing by the Participant,
except that such agreement shall not be required if the Administrator determines in its sole discretion that such modification or amendment
either (Y) is required or advisable in order for the Company, the Plan or the Award to satisfy any Applicable Law or to meet the requirements
of any accounting standard, or (Z) is not reasonably likely to significantly diminish the benefits provided under such Award, or that
adequate compensation has been provided for any such diminishment, except following a Change of Control;


 






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(xi)
to allow or require Participants to satisfy withholding tax amounts by electing to have the Company withhold from the Shares to be issued
upon exercise of a Nonqualified Stock Option or vesting of a Stock Award or Stock Unit Award that number of Shares having a Fair Market
Value equal to the amount required to be withheld. The Fair Market Value of the Shares to be withheld shall be determined in such manner
and on such date that the Administrator shall determine or, in the absence of provision otherwise, on the date that the amount of tax
to be withheld is to be determined. All elections by a Participant to have Shares withheld for this purpose shall be made in such form
and under such conditions as the Administrator may provide;


 


(xii)
to authorize conversion or substitution under the Plan of any or all stock options, stock appreciation rights or other stock awards held
by awardees of an entity acquired by the Company (the “Conversion Awards”). Any conversion or substitution shall be effective
as of the close of the merger or acquisition. The Conversion Awards may be Incentive Stock Options or Nonqualified Stock Options, as
determined by the Administrator, with respect to options granted by the acquired entity;


 


(xiii)
to authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Award previously granted
by the Administrator;


 


(xiv)
to impose such restrictions, conditions or limitations as it determines appropriate as to the timing and manner of any resale by a Participant
or of other subsequent transfers by the Participant of any Shares issued as a result of or under an Award or upon the exercise of an
Award, including, without limitation, (A) restrictions under an insider trading policy, (B) restrictions as to the use of a specified
brokerage firm for such resale or other transfers, and (C) institution of “blackout” periods on exercises of Awards;


 


(xv)
to provide, either at the time an Award is granted or by subsequent action, that an Award shall contain as a term thereof, a right, either
in tandem with the other rights under the Award or as an alternative thereto, of the Participant to receive, without payment to the Company,
a number of Shares, cash or a combination thereof, the amount of which is determined by reference to the value of the Award; and


 


(xvi)
to make all other determinations deemed necessary or advisable for administering the Plan and any Award granted hereunder.


 


(c)
Effect of Administrator’s Decision. All questions arising under the Plan or under any Award shall be decided by the Administrator
in its total and absolute discretion. All decisions, determinations and interpretations by the Administrator regarding the Plan, any
rules and regulations under the Plan and the terms and conditions of any Award granted hereunder, shall be final and binding on all Participants.
The Administrator shall consider such factors as it deems relevant, in its sole and absolute discretion, to making such decisions, determinations
and interpretations, including, without limitation, the recommendations or advice of any officer or other employee of the Company and
such attorneys, consultants and accountants as it may select.


 



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(d)
Indemnity. To the extent allowable under Applicable Law, each member of the Committee or of the Board and any person to whom the
Committee has delegated any of its authority under the Plan shall be indemnified and held harmless by the Company from any loss, cost,
liability, or expense that may be imposed upon or reasonably incurred by such person in connection with or resulting from any claim,
action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action or failure
to act pursuant to the Plan, and against and from any and all amounts paid by him or her in satisfaction of judgment in such action,
suit, or proceeding against him or her; provided he or she gives the Company an opportunity, at its own expense, to handle and defend
the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of indemnification shall not
be exclusive of any other rights of indemnification to which such persons may be entitled pursuant to the Company’s Articles of
Incorporation or By-laws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless.


 


5.       Eligibility.


 


Awards
may be granted only to Directors, Employees and Consultants of the Company or any of its Affiliates; provided, however, that Incentive
Stock Options may be granted only to Employees of the Company and its Subsidiaries (within the meaning of Section 424(f) of the Code).


 


6.       Term
of Plan.


 


The
Plan shall become effective upon its approval by shareholders of the Company. It shall continue in effect from the date the Plan is approved
by the shareholders of the Company (the “Effective Date”) until terminated under Section 16 of the Plan.


 


7.       Term
of Award.


 


Subject
to the provisions of the Plan, the term of each Award shall be determined by the Administrator and stated in the Award Agreement and
may extend beyond the termination of the Plan. In the case of an Option or a Stock Appreciation Right, the term shall be ten (10) years
from the Grant Date or such shorter term as may be provided in the Award Agreement. Notwithstanding the foregoing, the term of Awards
other than Awards that are structured to qualify as Incentive Stock Options under Section 9 shall be extended automatically if the Award
would expire at a time when trading in Common Shares is prohibited by law or the Company’s insider trading policy to the 30th
day after the expiration of the prohibition.


 


8.       Options.


 


The
Administrator may grant an Option or provide for the grant of an Option, either from time to time in the discretion of the Administrator
or automatically upon the occurrence of specified events, including, without limitation, the achievement of performance goals.


 


(a)
Option Agreement. Each Option Agreement shall contain provisions regarding (i) the number of Shares that may be issued upon exercise
of the Option, (ii) the type of Option, (iii) the exercise price of the Option and the means of payment of such exercise price, (iv)
the term of the Option, (v) such terms and conditions regarding the vesting and/or exercisability of an Option as may be determined from
time to time by the Administrator, (vi) restrictions on the transfer of the Option and forfeiture provisions, and (vii) such further
terms and conditions, in each case not inconsistent with this Plan, as may be determined from time to time by the Administrator.


 



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(b)
Exercise Price. The per share exercise price for the Shares to be issued upon exercise of an Option shall be determined by the
Administrator, except that the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the Grant Date,
except with respect to Conversion Awards.


 


(c)
No Option Repricings. Subject to Section 15(a) of the Plan, the exercise price of an Option may not be reduced without shareholder
approval, nor may outstanding Options be cancelled in exchange for cash, other Awards or Options with an exercise price that is less
than the exercise price of the original Option without shareholder approval.


 


(d)
No Reload Grants. Options shall not be granted under the Plan in consideration for and shall not be conditioned upon the delivery
of Shares to the Company in payment of the exercise price and/or tax withholding obligation under any other employee stock option.


 


(e)
Vesting Period and Exercise Dates. Options granted under this Plan shall vest and/or be exercisable at such time and in such installments
during the period prior to the expiration of the Option’s term as determined by the Administrator and as specified in the Option
Agreement. The Administrator shall have the right to make the timing of the ability to exercise any Option granted under this Plan subject
to continued active employment, the passage of time and/or such performance requirements as deemed appropriate by the Administrator.
At any time after the grant of an Option, the Administrator may reduce or eliminate any restrictions surrounding any Participant’s
right to exercise all or part of the Option.


 


(f)
Form of Consideration. The Administrator shall determine the acceptable form of consideration for exercising an Option, including
the method of payment, either through the terms of the Option Agreement or at the time of exercise of an Option. Acceptable forms of
consideration may include:


 


(i)
cash;


 


(ii)
check or wire transfer (denominated in U.S. Dollars);


 


(iii)
subject to any conditions or limitations established by the Administrator, other Shares which were held for a period of more than six
(6) months on the date of surrender and which have a Fair Market Value on the date of surrender equal to or greater than the aggregate
exercise price of the Shares as to which said Option shall be exercised (it being agreed that the excess of the Fair Market Value over
the aggregate exercise price, if any, shall be refunded to the Awardee in cash);


 


(iv)
subject to any conditions or limitations established by the Administrator, the Company withholding Shares otherwise issuable upon exercise
of an Option;


 


(v)
consideration received by the Company under a broker-assisted sale and remittance program acceptable to the Administrator and in compliance
with Applicable Law;


 


(vi)
such other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Law; or


 


(vii)
any combination of the foregoing methods of payment.


 






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(g)
Procedure for Exercise; Rights as a Shareholder.


 


(i)
Any Option granted hereunder shall be exercisable according to the terms of the Plan and at such times and under such conditions as determined
by the Administrator and set forth in the applicable Option Agreement.


 


(ii)
An Option shall be deemed exercised when (A) the Company receives (1) written or electronic notice of exercise (in accordance with the
Option Agreement or procedures established by the Administrator) from the person entitled to exercise the Option and (2) full payment
for the Shares with respect to which the related Option is exercised, and (B) with respect to Nonqualified Stock Options, provisions
acceptable to the Administrator have been made for payment of all applicable withholding taxes.


 


(iii)
Unless provided otherwise by the Administrator or pursuant to this Plan, until the Shares are issued (as evidenced by the appropriate
entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any
other rights as a shareholder shall exist with respect to the Shares subject to an Option, notwithstanding the exercise of the Option.


 


(iv)
The Company shall issue (or cause to be issued) such Shares as soon as administratively practicable after the Option is exercised. An
Option may not be exercised for a fraction of a Share.


 


9.       Incentive
Stock Option Limitations/Terms.


 


(a)
Eligibility. Only Employees (who qualify as employees under Section 3401(c) of the Code and the regulations promulgated thereunder)
of the Company or any of its Subsidiaries may be granted Incentive Stock Options. No Incentive Stock Option shall be granted to any such
Employee who as of the Grant Date owns stock possessing more than 10% of the total combined voting power of the Company unless at the
time such Option is granted the Option exercise price is at least 110% of the Fair Market Value of the Shares subject to the Option on
the Grant Date and such Option by its terms is not exercisable after the expiration of 5 years from the Grant Date.


 


(b)
$100,000 Limitation. Notwithstanding the designation “Incentive Stock Option” in an Option Agreement, if and to the
extent that the aggregate Fair Market Value of the Shares with respect to which Incentive Stock Options are exercisable for the first
time by the Awardee during any calendar year (under all plans of the Company and any of its Subsidiaries) exceeds U.S. $100,000, such
Options shall be treated as Nonqualified Stock Options. For purposes of this Section 9(b) of the Plan, Incentive Stock Options shall
be taken into account in the order in which they were granted. The Fair Market Value of the Shares shall be determined as of the Grant
Date.


 


(c)
Transferability. The Option Agreement must provide that an Incentive Stock Option is not transferable by the Awardee otherwise
than by will or the laws of descent and distribution, and, during the lifetime of such Awardee, must not be exercisable by any other
person. If the terms of an Incentive Stock Option are amended to permit transferability, the Option will be treated for tax purposes
as a Nonqualified Stock Option.


 






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(d)
Exercise Price. The per Share exercise price of an Incentive Stock Option shall in no event be inconsistent with the requirements
for qualification of the Incentive Stock Option under Section 422 of the Code.


 


(e)
Other Terms. Option Agreements evidencing Incentive Stock Options shall contain such other terms and conditions as may be necessary
to qualify, to the extent determined desirable by the Administrator, with the applicable provisions of Section 422 of the Code. If any
such terms and conditions, as of the Grant Date or any later date, do not so comply, the Option will be treated thereafter for tax purposes
as a Nonqualified Stock Option.


 


10.     Stock
Appreciation Rights.


 


A
“Stock Appreciation Right” or “SAR” is a right that entitles the Awardee to receive, in cash or Shares (as determined
by the Administrator), value equal to or otherwise based on the excess of (i) the Fair Market Value of a specified number of Shares at
the time of exercise over (ii) the aggregate exercise price of the right, as established by the Administrator on the Grant Date. All
Stock Appreciation Rights under the Plan shall be granted subject to the same terms and conditions applicable to Options as set forth
in Section 8 of the Plan. Stock Appreciation Rights may be granted to Awardees either alone (“freestanding”) or in addition
to or in tandem with other Awards granted under the Plan and may, but need not, relate to a specific Option granted under Section 8 of
the Plan. However, any Stock Appreciation Right granted in tandem with an Option may be granted at the same time such Option is granted
or at any time thereafter before exercise or expiration of such Option, and shall be based on the Fair Market Value of one Share on the
Grant Date or, if applicable, on the Grant Date of the Option with respect to a Stock Appreciation Right granted in exchange for or in
tandem with, but subsequent to, the Option (subject to the requirements of Section 409A of the Code). Subject to the provisions of Section
8 of the Plan, the Administrator may impose such other conditions or restrictions on any Stock Appreciation Right as it shall deem appropriate.


 


11.     Stock
Awards.


 


(a)
Stock Award Agreement. Each Stock Award Agreement shall contain provisions regarding (i) the number of Shares subject to such
Stock Award or a formula for determining such number, (ii) the purchase price of the Shares, if any, and the means of payment for the
Shares, (iii) the Performance Criteria, if any, and level of achievement versus these criteria that shall determine the number of Shares
granted, issued, retainable and/or vested, (iv) such terms and conditions on the grant, issuance, vesting and/or forfeiture of the Shares
as may be determined from time to time by the Administrator, (v) restrictions on the transferability of the Stock Award, and (vi) such
further terms and conditions, in each case not inconsistent with this Plan, as may be determined from time to time by the Administrator.
The Committee may, in its sole discretion, waive the vesting restrictions and any other conditions set forth in any Award Agreement under
such terms and conditions as the Committee shall deem appropriate.


 


(b)
Restrictions and Performance Criteria. The grant, issuance, retention and/or vesting of Stock Awards issued to Employees may be
subject to such Performance Criteria and level of achievement versus these criteria as the Administrator shall determine, which criteria
may be based on financial performance, the occurrence of a specified corporate event, personal performance evaluations and/or completion
of service by the Awardee. Awards with vesting conditions that are based upon Performance Criteria and level of achievement versus such
criteria are referred to as “Performance Stock Awards” and Awards with vesting conditions that are based upon continued employment
or the passage of time are referred to as “Restricted Stock Awards.”


 



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(c)
Rights as a Shareholder. Unless otherwise provided for by the Administrator, the Participant shall have the rights equivalent
to those of a shareholder and shall be a shareholder only after Shares are issued (as evidenced by the appropriate entry on the books
of the Company or of a duly authorized transfer agent of the Company) to the Participant. Any certificate issued in respect of a Restricted
Stock Award shall be registered in the name of the applicable Participant and shall bear an appropriate legend referring to the terms,
conditions, and restrictions applicable to such Award. The Committee may require that the certificates evidencing such Shares be held
in custody by the Company until the restrictions thereon shall have lapsed and that, as a condition of any Award of Restricted Stock,
the applicable Participant shall have delivered a stock power, endorsed in blank, relating to the Common Shares covered by such Award.
The Participant shall not be permitted to sell, assign, transfer, pledge or otherwise encumber a Stock Award.


 


12.     Stock
Unit Awards and Other Stock-Based Awards.


 


(a)
Stock Unit Awards. Each Stock Unit Award Agreement shall contain provisions regarding (i) the number of Shares subject to such
Stock Unit Award or a formula for determining such number, (ii) the Performance Criteria, if any, and level of achievement versus these
criteria that shall determine the number of Shares granted, issued, and/or vested, (iii) such terms and conditions on the grant, issuance,
vesting and/or forfeiture of the Shares as may be determined from time to time by the Administrator, (iv) restrictions on the transferability
of the Stock Unit Award, and (v) such further terms and conditions, in each case not inconsistent with this Plan, as may be determined
from time to time by the Administrator. The Committee may, in its sole discretion, waive the vesting restrictions and any other conditions
set forth in any Award Agreement under such terms and conditions as the Committee shall deem appropriate.


 


(b)
Restrictions and Performance Criteria. The grant, issuance, retention and/or vesting of Stock Unit Awards issued to Employees
may be subject to such Performance Criteria and level of achievement versus these criteria as the Administrator shall determine, which
criteria may be based on financial performance, the occurrence of a specified corporate event, personal performance evaluations and/or
completion of service by the Awardee. Awards with vesting conditions that are based upon Performance Criteria and level of achievement
versus such criteria are referred to as “Performance Stock Unit Awards” and Awards with vesting conditions that are based
upon continued employment or the passage of time are referred to as “Restricted Stock Unit Awards.”


 


(c)
Rights as a Shareholder. Unless otherwise provided for by the Administrator, the Participant shall have the rights equivalent
to those of a shareholder and shall be a shareholder only after Shares are issued (as evidenced by the appropriate entry on the books
of the Company or of a duly authorized transfer agent of the Company) to the Participant. 


 


(d)
Other Stock-Based Award. An “Other Stock-Based Award” means any other type of equity-based or equity-related Award
not otherwise described by the terms of this Plan (including the grant or offer for sale of unrestricted Shares), as well as any cash-based
bonus based on the attainment of Performance Criteria as described in Section 13(b), in such amount and subject to such terms and conditions
as the Administrator shall determine. Such Awards may involve the transfer of actual Shares to Participants, or payment in cash or otherwise
of amounts based on the value of Shares or pursuant to attainment of a performance goal. Each Other Stock-Based Award will be evidenced
by an Award Agreement containing such terms and conditions as may be determined by the Administrator.


 






    14


     


    

  


(e)
Value of Other Stock-Based Awards. Each Other Stock-Based Award shall be expressed in terms of Shares or units based on Shares
or a target amount of cash, as determined by the Administrator. The Administrator may establish Performance Criteria in its discretion.
If the Administrator exercises its discretion to establish Performance Criteria, the number and/or value of Other Stock-Based Awards
that will be paid out to the Participant will depend on the extent to which the performance goals are met.


 


(f)
Payment of Other Stock-Based Awards. Payment, if any, with respect to Other Stock-Based Awards shall be made in accordance with
the terms of the Award, in cash or Shares as the Administrator determines.


 


13.     Other
Provisions Applicable to Awards.


 


(a)
Non-Transferability of Awards. Unless determined otherwise by the Administrator, an Award may not be sold, pledged, assigned,
hypothecated, transferred or disposed of in any manner other than by beneficiary designation, will or by the laws of descent or distribution,
including but not limited to any attempted assignment or transfer in connection with the settlement of marital property or other rights
incident to a divorce or dissolution, and any such attempted sale, assignment or transfer shall be of no effect prior to the date an
Award is vested and settled. The Administrator may only make an Award transferable to an Awardee’s family member or any other person
or entity provided the Awardee does not receive consideration for such transfer. If the Administrator makes an Award transferable, either
as of the Grant Date or thereafter, such Award shall contain such additional terms and conditions as the Administrator deems appropriate,
and any transferee shall be deemed to be bound by such terms upon acceptance of such transfer.


 


(b)
Performance Criteria. For purposes of this Plan, the term “Performance Criteria” shall mean any one or more criteria
based on financial performance, the occurrence of a specified corporate event (such as an acquisition or merger), personal performance
evaluations and/or completion of service, either individually, alternatively or in any combination, applied, as applicable, to either
the Company as a whole or to a Subsidiary, business unit, Affiliate or business segment, either individually, alternatively or in any
combination, and measured either annually or cumulatively over a period of years, on an absolute basis or relative to a pre-established
target, to previous years’ results or to a designated comparison group, in each case as specified by the Committee in the Award
or by duly adopted resolution. The Administrator may establish specific performance targets (including thresholds and whether to exclude
certain extraordinary, non-recurring, or similar items) and Award amounts, subject to the right of the Administrator to exercise discretion
to adjust payment amounts, either up or down, following the conclusion of the performance period on the basis of such further considerations
as the Administrator in its sole discretion shall determine. Extraordinary, non-recurring items that may be the basis of adjustment include,
but are not limited to, acquisitions or divestitures, restructurings, discontinued operations, extraordinary items, and other unusual
or non-recurring charges, an event either not directly related to the operations of the Company, Subsidiary, division, business segment
or business unit or not within the reasonable control of management, the cumulative effects of tax or accounting changes in accordance
with U.S. generally accepted accounting principles, and foreign exchange gains or losses.


 


(c)
Termination of Employment or Board Membership. The Administrator shall determine as of the Grant Date (subject to modification
subsequent to the Grant Date) the effect a termination from membership on the Board by a Non-employee Director for any reason or a Termination
of Employment due to Disability, death, or otherwise (including Termination for Cause) shall have on any Award. Unless otherwise provided
in the Award Agreement:


 






    15


     


    

 


(i)
Upon termination from membership on the Board by a Non-employee Director for any reason other than Disability or death, any Option or
SAR held by such Director that (1) has not vested and is not exercisable as of the effective date of such termination from membership
on the Board shall be subject to immediate cancellation and forfeiture, or (2) is vested and exercisable as of the effective date of
such termination shall remain exercisable for one year thereafter, or the remaining term of the Option or SAR, if less. Any unvested
Stock Award, Stock Unit Award or Other Stock Based Award held by a Non-employee Director at the time of termination from membership on
the Board for a reason other than Disability or death shall be immediately cancelled and forfeited.


 


(ii)
Termination from membership on the Board by a Non-employee Director due to Disability or death shall result in full vesting of any outstanding
Options or SARs and vesting of a prorated portion of any Stock Award, Stock Unit Award or Other Stock Based Award based upon the full
months of the applicable performance period, vesting period or other period of restriction elapsed as of the end of the month in which
the termination from membership on the Board by a Non-employee Director due to Disability or death occurs over the total number of months
in such period. Any Options or SARs that vest upon Disability or death shall remain exercisable for one year thereafter, or the remaining
term of the Option or SAR, if less. In the case of any Stock Award, Stock Unit Award or Other Stock Based Award that vests on the basis
of attainment of Performance Criteria, the pro-rata vested amount shall be based upon the target award.


 


(iii)
Upon Termination of Employment due to Disability or death, any Option or SAR held by an Employee shall, if not already fully vested,
become fully vested and exercisable as of the effective date of such Termination of Employment and shall remain exercisable for one year
after such Termination of Employment due to Disability or death, or, in either case, the remaining term of the Option or SAR, if less.
Termination of Employment due to Disability or death shall result in vesting of a prorated portion of any Stock Award, Stock Unit Award
or Other Stock Based Award based upon the full months of the applicable performance period, vesting period or other period of restriction
elapsed as of the end of the month in which the Termination of Employment due to Disability or death occurs over the total number of
months in such period. In the case of any Stock Award, Stock Unit Award or Other Stock Based Award that vests on the basis of attainment
of Performance Criteria, the pro-rata vested amount shall be based upon the target award.


 


(iv)
Any other Termination of Employment shall result in immediate cancellation and forfeiture of all outstanding Awards that have not vested
as of the effective date of such Termination of Employment, and any vested and exercisable Options and SARs held at the time of such
Termination of Employment shall remain exercisable for ninety (90) days thereafter, or the remaining term of the Option or SAR, if less.
Notwithstanding the foregoing, all outstanding and unexercised Options and SARs shall be immediately cancelled in the event of a Termination
for Cause.


 


14.     Dividends and Dividend Equivalents.


 


Awards
other than Options and Stock Appreciation Rights may provide the Awardee with the right to receive dividend payments or dividend equivalent
payments on the Shares subject to the Award, whether or not such Award is vested. Notwithstanding the foregoing, dividends or dividend
equivalents shall not be paid with respect to Stock Awards, Stock Unit Awards or Other Stock-Based Awards that vest based on the achievement
of performance goals prior to the date the performance goals are satisfied and the Award is earned, and then shall be payable only with
respect to the number of Shares or Stock Units actually earned under the Award. Such payments may be made in cash, Shares or Stock Units
or may be credited as cash or Stock Units to an Awardee’s account and later settled in cash or Shares or a combination thereof,
as determined by the Administrator. Such payments and credits may be subject to such conditions and contingencies as the Administrator
may establish.


 






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15.     Adjustments
upon Changes in Capitalization, Organic Change or Change of Control.


 


(a)
Adjustment Clause. In the event of (i) a stock dividend, extraordinary cash dividend, stock split, reverse stock split, share
combination, or recapitalization or similar event affecting the capital structure of the Company (each, a “Share Change”),
or (ii) a merger, consolidation, acquisition of property or shares, separation, spin-off, reorganization, stock rights offering, liquidation,
Disaffiliation, or similar event affecting the Company or any of its Subsidiaries (each, an “Organic Change”), the Administrator
or the Board shall make such substitutions or adjustments as it deems appropriate and equitable to (i) the Share limitations set forth
in Section 3 of the Plan, (ii) the number and kind of Shares covered by each outstanding Award, and (iii) the price per Share subject
to each such outstanding Award. In the case of Organic Changes, such adjustments may include, without limitation, (x) the cancellation
of outstanding Awards in exchange for payments of cash, property or a combination thereof having an aggregate value equal to the value
of such Awards, as determined by the Administrator or the Board in its sole discretion (it being understood that in the case of an Organic
Change with respect to which shareholders receive consideration other than publicly traded equity securities of the ultimate surviving
entity, any such determination by the Administrator that the value of an Option or Stock Appreciation Right shall for this purpose be
deemed to equal the excess, if any, of the value of the consideration being paid for each Share pursuant to such Organic Change over
the exercise price of such Option or Stock Appreciation Right shall conclusively be deemed valid); (y) the substitution of other property
(including, without limitation, cash or other securities of the Company and securities of entities other than the Company) for the Shares
subject to outstanding Awards; and (z) in connection with any Disaffiliation, arranging for the assumption of Awards, or replacement
of Awards with new awards based on other property or other securities (including, without limitation, other securities of the Company
and securities of entities other than the Company), by the affected Subsidiary, Affiliate, or division or by the entity that controls
such Subsidiary, Affiliate, or division following such Disaffiliation (as well as any corresponding adjustments to Awards that remain
based upon Company securities). The Committee may adjust in its sole discretion the Performance Criteria applicable to any Awards to
reflect any Share Change and any Organic Change and any unusual or non-recurring events and other extraordinary items, impact of charges
for restructurings, discontinued operations, and the cumulative effects of accounting or tax changes, each as defined by generally accepted
accounting principles or as identified in the Company’s financial statements, notes to the financial statements, management’s
discussion and analysis or the Company’s other SEC filings. Any adjustment under this Section 15(a) need not be the same for all
Participants.


 


(b)
Change of Control. In the event of a Change of Control, unless otherwise determined by the Administrator as of the Grant Date
of a particular Award (or subsequent to the Grant Date), the following acceleration, exercisability and valuation provisions shall apply:


 


(i)
On the date that such Change of Control occurs, any or all Options and Stock Appreciation Rights awarded under this Plan not previously
exercisable and vested shall, if not assumed, or substituted with a new award, by the successor to the Company, become fully exercisable
and vested, and if the successor to the Company assumes such Options or Stock Appreciation Rights or substitutes other awards for such
Awards, such Awards (or their substitutes) shall become fully exercisable and vested if the Participant’s employment is terminated
(other than a Termination for Cause) within two years following the Change of Control.


 






    17


     


    

 


(ii)
Except as may be provided in an individual severance or employment agreement (or severance plan) to which an Awardee is a party, in the
event of an Awardee’s Termination of Employment within two years after a Change of Control for any reason other than because of
the Awardee’s death, Disability or Termination for Cause, each Option and Stock Appreciation Right held by the Awardee (or a transferee)
that is vested following such Termination of Employment shall remain exercisable until the earlier of the third anniversary of such Termination
of Employment (or any later date until which it would remain exercisable under such circumstances by its terms) or the expiration of
its original term. In the event of an Awardee’s Termination of Employment more than two years after a Change of Control, or within
two years after a Change of Control because of the Awardee’s death, Disability or Termination for Cause, the provisions of Section
13(c) of the Plan shall govern (as applicable).


 


(iii)
On the date that such Change of Control occurs, the restrictions and conditions applicable to any or all Stock Awards, Stock Unit Awards
and Other Stock-Based Awards that are not assumed, or substituted with a new award, by the successor to the Company shall lapse and such
Awards shall be fully vested. Unless otherwise provided in an Award Agreement at the Grant Date, upon the occurrence of a Change of Control
without assumption or substitution of the Awards by the successor, any performance-based Award shall be deemed fully earned at the target
amount as of the date on which the Change of Control occurs. All Stock Awards, Stock Unit Awards and Other Stock-Based Awards shall be
settled or paid within thirty (30) days of vesting hereunder. Notwithstanding the foregoing, if the Change of Control would not qualify
as a permissible date of distribution under Section 409A(a)(2)(A) of the Code, and the regulations thereunder, the Awardee shall be entitled
to receive the Award from the Company on the date that would have applied absent this provision. If the successor to the Company does
assume (or substitute with a new award) any Stock Awards, Stock Unit Awards and Other Stock-Based Awards, all such Awards shall become
fully vested if the Participant’s employment is terminated (other than a Termination for Cause) within two years following the
Change of Control, and any performance-based Award shall be deemed fully earned at the target amount effective as of such Termination
of Employment.


 


(iv)
The Committee, in its discretion, may determine that, upon the occurrence of a Change of Control of the Company, each Option and Stock
Appreciation Right outstanding shall terminate within a specified number of days after notice to the Participant, and/or that each Participant
shall receive, with respect to each Share subject to such Option or Stock Appreciation Right, an amount equal to the excess of the Fair
Market Value of such Share immediately prior to the occurrence of such Change of Control over the exercise price per Share of such Option
and/or Stock Appreciation Right; such amount to be payable in cash, in one or more kinds of stock or property (including the stock or
property, if any, payable in the transaction) or in a combination thereof, as the Committee, in its discretion, shall determine, and
if there is no excess value, the Committee may, in its discretion, cancel such Awards.


 






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(v)
An Option, Stock Appreciation Right, Stock Award, Stock Unit Award or Other Stock-Based Award shall be considered assumed or substituted
for if following the Change of Control the Award confers the right to purchase or receive, for each Share subject to the Option, Stock
Appreciation Right, Stock Award, Stock Unit Award or Other Stock-Based Award immediately prior to the Change of Control, the consideration
(whether stock, cash or other securities or property) received in the transaction constituting a Change of Control by holders of Shares
for each Share held on the effective date of such transaction (and if holders were offered a choice of consideration, the type of consideration
chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the transaction
constituting a Change of Control is not solely common stock of the successor company, the Committee may, with the consent of the successor
company, provide that the consideration to be received upon the exercise or vesting of an Option, Stock Appreciation Right, Stock Award,
Stock Unit Award or Other Stock-Based Award, for each Share subject thereto, will be solely common stock of the successor company with
a fair market value substantially equal to the per Share consideration received by holders of Shares in the transaction constituting
a Change of Control. The determination of whether fair market value is substantially equal shall be made by the Committee in its sole
discretion and its determination shall be conclusive and binding.


 


(c)
Section 409A. Notwithstanding the foregoing: (i) any adjustments made pursuant to Section 14(a) of the Plan to Awards that are
considered “deferred compensation” within the meaning of Section 409A of the Code shall be made in compliance with the requirements
of Section 409A of the Code; (ii) any adjustments made pursuant to Section 15(a) of the Plan to Awards that are not considered “deferred
compensation” subject to Section 409A of the Code shall be made in such a manner as to ensure that, after such adjustment, the
Awards either continue not to be subject to Section 409A of the Code or comply with the requirements of Section 409A of the Code; (iii)
the Administrator shall not have the authority to make any adjustments pursuant to Section 15(a) of the Plan to the extent that the existence
of such authority would cause an Award that is not intended to be subject to Section 409A of the Code to be subject thereto; and (iv)
if any Award is subject to Section 409A of the Code, Section 15(b) of the Plan shall be applicable only to the extent specifically provided
in the Award Agreement and permitted pursuant to Section 24 of the Plan in order to ensure that such Award complies with Code Section
409A.


 


16.     Amendment
and Termination of the Plan.


 


(a)
Amendment and Termination. The Administrator may amend, alter or discontinue the Plan or any Award Agreement, but any such amendment
shall be subject to approval of the shareholders of the Company to the extent required by Applicable Law. In addition, unless approved
by the Board (and the shareholders of the Company to the extent required by Applicable Law) and subject to Section 16(b), no such amendment
shall be made that would:


 


(i)
increase the maximum aggregate number of Shares which may be subject to Awards granted under the Plan;


 


(ii)
reduce the minimum exercise price for Options or Stock Appreciation Rights granted under the Plan; or


 


(iii)
reduce the exercise price of outstanding Options or Stock Appreciation Rights, as prohibited by Section 8(c) without shareholder approval.


 


(b)
Effect of Amendment or Termination. No amendment, suspension or termination of the Plan shall impair the rights of any Participant
with respect to an outstanding Award, unless mutually agreed otherwise between the Participant and the Administrator, which agreement
must be in writing and signed by the Participant and the Company, except that no such agreement shall be required if the Administrator
determines in its sole discretion that such amendment either (i) is required or advisable in order for the Company, the Plan or the Award
to satisfy any Applicable Law or to meet the requirements of any accounting standard, or (ii) is not reasonably likely to significantly
diminish the benefits provided under such Award, or that any such diminishment has been adequately compensated, except that this exception
shall not apply following a Change of Control. Termination of the Plan shall not affect the Administrator’s ability to exercise
the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination.


 






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(c)
Effect of the Plan on Other Arrangements. Neither the adoption of the Plan by the Board or a Committee nor the submission of the
Plan to the shareholders of the Company for approval, if required, shall be construed as creating any limitations on the power of the
Board or any Committee to adopt such other incentive arrangements as it or they may deem desirable, including without limitation, the
granting of restricted shares or restricted share units or stock options otherwise than under the Plan, and such arrangements may be
either generally applicable or applicable only in specific cases.


 


17.     Designation
of Beneficiary.


 


(a)
An Awardee may file a written designation of a beneficiary who is to receive the Awardee’s rights pursuant to Awardee’s Awards
or the Awardee may include his or her Awards in an omnibus beneficiary designation for all benefits under the Plan. To the extent that
Awardee has completed a designation of beneficiary while employed with the Company or an Affiliate, such beneficiary designation shall
remain in effect with respect to any Award hereunder until changed by the Awardee to the extent enforceable under Applicable Law.


 


(b)
Such designation of beneficiary may be changed by the Awardee at any time by written notice. In the event of the death of an Awardee
and in the absence of a beneficiary validly designated under the Plan who is living at the time of such Awardee’s death, the Company
shall allow the legal representative of the Awardee’s estate to exercise the Award.


 


18.     No
Right to Awards or to Employment.


 


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


 


19.     Legal
Compliance.


 


Shares
shall not be issued pursuant to an Option, Stock Appreciation Right, Stock Award, Stock Unit Award or Other Stock-Based Award unless
such Option, Stock Appreciation Right, Stock Award or Other Stock-Based Award and the issuance and delivery of such Shares shall comply
with Applicable Law and shall be further subject to the approval of counsel for the Company with respect to such compliance. Unless the
Awards and Shares covered by this Plan have been registered under the Securities Act or the Company has determined that such registration
is unnecessary, each person receiving an Award and/or Shares pursuant to any Award may be required by the Company to give a representation
in writing that such person is acquiring such Shares for his or her own account for investment and not with a view to, or for sale in
connection with, the distribution of any part thereof.


 






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20.     Inability
to Obtain Authority. 


To
the extent the Company is unable to or the Administrator deems it unfeasible to obtain authority from any regulatory body having jurisdiction,
which authority is deemed by the Company’s counsel to be advisable or necessary to the lawful issuance and sale of any Shares hereunder,
the Company shall be relieved of any liability with respect to the failure to issue or sell such Shares as to which such requisite authority
shall not have been obtained.


 


21.     Reservation
of Shares.


 


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


 


22.     Notice.


 


Any
written notice to the Company required by any provisions of this Plan shall be addressed to the Secretary of the Company and shall be
effective when received. Any notice to a Participant hereunder shall be addressed to the last address of record with the Company and
shall be effective when sent via first class mail, courier service, or electronic mail to such last address of record.


 


23.     Governing
Law; Interpretation of Plan and Awards.


 


(a)
This Plan and all determinations made and actions taken pursuant hereto shall be governed by the substantive laws, but not the choice
of law rules, of the state of Delaware, except as to matters governed by U.S. federal law.


 


(b)
In the event that any provision of the Plan or any Award granted under the Plan is declared to be illegal, invalid or otherwise unenforceable
by a court of competent jurisdiction, such provision shall be reformed, if possible, to the extent necessary to render it legal, valid
and enforceable, or otherwise deleted, and the remainder of the terms of the Plan and/or Award shall not be affected except to the extent
necessary to reform or delete such illegal, invalid or unenforceable provision.


 


(c)
The headings preceding the text of each section hereof are inserted solely for convenience of reference, and shall not constitute a part
of the Plan, nor shall they affect its meaning, construction or effect.


 


(d)
The terms of the Plan and any Award shall inure to the benefit of and be binding upon the parties hereto and their respective permitted
heirs, beneficiaries, successors and assigns.


 


24.     Section
409A.


 


It
is the intention of the Company that no Award shall be “deferred compensation” subject to Section 409A of the Code, unless
and to the extent that the Administrator specifically determines otherwise, and the Plan and the terms and conditions of all Awards shall
be interpreted accordingly. The terms and conditions governing any Awards that the Administrator determines will be subject to Section
409A of the Code, including any rules for elective or mandatory deferral of the delivery of cash or Shares pursuant thereto and any rules
regarding treatment of such Awards in the event of a Change of Control, shall be set forth in the applicable Award Agreement, deferral
election forms and procedures, and rules established by the Administrator, and shall comply in all respects with Section 409A of the
Code. The following rules will apply to Awards intended to be subject to Section 409A of the Code (“409A Awards”):


 






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(a)
If a Participant is permitted to elect to defer an Award or any payment under an Award, such election will be permitted only at times
in compliance with Code Section 409A.


 


(b)
The Company shall have no authority to accelerate distributions relating to 409A Awards in excess of the authority permitted under Section
409A.


 


(c)
Any distribution of a 409A Award following a Termination of Employment that would be subject to Code Section 409A(a)(2)(A)(i) as a distribution
following a separation from service of a “specified employee” as defined under Code Section 409A(a)(2)(B)(i), shall occur
no earlier than the expiration of the six-month period following such Termination of Employment.


 


(d)
In the case of any distribution of a 409A Award, if the timing of such distribution is not otherwise specified in the Plan or an Award
Agreement or other governing document, the distribution shall be made not later than the end of the calendar year during which the settlement
of the 409A Award is specified to occur.


 


(e)
In the case of an Award providing for distribution or settlement upon vesting or the lapse of a risk of forfeiture, if the time of such
distribution or settlement is not otherwise specified in the Plan or an Award Agreement or other governing document, the distribution
or settlement shall be made not later than March 15 of the year following the year in which the Award vested or the risk of forfeiture
lapsed.


 


(f)
Notwithstanding anything herein to the contrary, neither the Company nor the Administrator makes any representation or guarantee that
the Plan or its administration shall comply with Code Section 409A, and in no event shall the Company or the Administrator be liable
for the payment of, or any gross up payment in connection with, any taxes or penalties owed by the Participant pursuant to Code Section
409A.


 


25.     Limitation
on Liability.


 


The
Company and any Affiliate which is in existence or hereafter comes into existence shall not be liable to a Participant, an Employee,
an Awardee or any other persons as to:


 


(a)
The Non-Issuance of Shares. The non-issuance or sale of Shares as to which the Company has been unable to obtain from any regulatory
body having jurisdiction the authority deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any shares
hereunder; and


 


(b)
Tax or Exchange Control Consequences. Any tax consequence expected, but not realized, or any exchange control obligation owed,
by any Participant, Employee, Awardee or other person due to the receipt, exercise or settlement of any Option or other Award granted
hereunder.


 


26.     Unfunded
Plan.


 


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


 






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27.     Foreign
Employees and Consultants.


 


Awards
may be granted hereunder to Employees and Consultants who are foreign nationals, who are located outside the United States or who are
not compensated from a payroll maintained in the United States, or who are otherwise subject to (or could cause the Company to be subject
to) legal or regulatory provisions of countries or jurisdictions outside the United States, on such terms and conditions different from
those specified in the Plan as may, in the judgment of the Administrator, be necessary or desirable to foster and promote achievement
of the purposes of the Plan, and, in furtherance of such purposes, the Administrator may make such modifications, amendments, procedures,
or subplans as may be necessary or advisable to comply with such legal or regulatory provisions.


 







28.     Tax
Withholding.


 


Each
Participant shall pay to the Company, or make arrangements satisfactory to the Company regarding the payment of, any federal, state,
local or foreign taxes of any kind required by law to be withheld with respect to any Award under the Plan no later than the date as
of which any amount under such Award first becomes includible in the gross income of the Participant for any tax purposes with respect
to which the Company has a tax withholding obligation. Unless otherwise determined by the Company, withholding obligations may be settled
with Shares, including Shares that are part of the Award that gives rise to the withholding requirement; provided, however, that not
more than the maximum statutory withholding requirement may be settled with Shares that are part of the Award. The obligations of the
Company under the Plan shall be conditional on such payment or arrangements, and the Company and its Affiliates shall, to the extent
permitted by law, have the right to deduct any such taxes from any vested Shares or any other payment due to the Participant at that
time or at any future time. The Administrator may establish such procedures as it deems appropriate, including making irrevocable elections,
for the settlement of withholding obligations with Shares.


 


29.
    Cancellation of Award; Forfeiture of Gain.


 


Notwithstanding
anything to the contrary contained herein, an Award Agreement may provide that the Award will be cancelled and the Participant will forfeit
the Shares or cash received or payable on the vesting or exercise of the Award, and that the amount of any proceeds of the sale or gain
realized on the vesting or exercise of the Award must be repaid to the Company, under such conditions as may be required by Applicable
Law or established by the Committee in its sole discretion.