Exhibit 4.4


 


VERIFYME, INC.


 


2020 EQUITY INCENTIVE PLAN


 


Section 1.            Purpose


 


The purpose of the VerifyMe, Inc. 2020 Equity Incentive Plan
(the “Plan”) is to promote stockholder value and the future success of VerifyMe, Inc. (the “Company”)
by providing appropriate retention and performance incentives to the employees and non-employee directors of the Company and its
Affiliates (as defined below), and any other individuals who perform services for the Company or its Affiliates.


 


Section 2.            Definitions


 


2.1         “Affiliate”
means any entity in which the Company has a direct or indirect equity interest of 50 percent or more, any entity included in the
audited consolidated financial statements of the Company and any other entity in which the Company has a substantial ownership
interest and which has been designated as an Affiliate for purposes of the Plan by the Committee in its sole discretion.


 


2.2         “Award”
means any form of incentive or performance award granted under the Plan to a Participant by the Committee pursuant to any terms
and conditions that the Committee may establish and set forth in the applicable Award Agreement. Awards granted under the Plan
may consist of: (a) Options granted pursuant to Section 7; (b) Stock Appreciation Rights granted pursuant to Section 8;
(c) Restricted Stock granted pursuant to Section 9; (d) Restricted Stock Units granted pursuant to Section 9;
and (e) Other Stock-Based Awards granted pursuant to Section 10.


 


2.3         “Award
Agreement” means the written or electronic document(s) evidencing the grant of an Award to a Participant.


 


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


 


2.5         “Change
in Control” means the happening of any of the following:


 


(a)       any
Exchange Act Person becomes the owner, directly or indirectly, of securities of the Company representing more than 50 percent of
the combined voting power of the Company’s then outstanding securities other than by virtue of a merger, consolidation or
similar transaction. Notwithstanding the foregoing, a Change in Control will not be deemed to occur (A) on account of the
acquisition of securities of the Company by an investor, any affiliate thereof or any other Exchange Act Person from the Company
in a transaction or series of related transactions the primary purpose of which is to obtain financing for the Company through
the issuance of equity securities or (B) solely because the level of ownership held by any Exchange Act Person (the “Subject
Person”) exceeds the designated percentage threshold of the outstanding voting securities as a result of a repurchase
or other acquisition of voting securities by the Company reducing the number of shares outstanding, provided that if a Change in
Control would occur (but for the operation of this sentence) as a result of the acquisition of voting securities by the Company,
and after such share acquisition, the Subject Person becomes the owner of any additional voting securities that, assuming the repurchase
or other acquisition had not occurred, increases the percentage of the then outstanding voting securities owned by the Subject
Person over the designated percentage threshold, then a Change in Control will be deemed to occur;


 



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(b)       there
is consummated a merger, consolidation or similar transaction involving (directly or indirectly) the Company and, immediately after
the consummation of such merger, consolidation or similar transaction, the stockholders of the Company immediately prior thereto
do not own, directly or indirectly, either (A) outstanding voting securities representing more than 50 percent of the combined
outstanding voting power of the surviving entity in such merger, consolidation or similar transaction or (B) more than 50 percent
of the combined outstanding voting power of the parent of the surviving entity in such merger, consolidation or similar transaction,
in each case in substantially the same proportions relative to each other as their ownership of the outstanding voting securities
of the Company immediately prior to such transaction;


 


(c)       there
is consummated a sale, lease, exclusive license or other disposition of all or substantially all of the consolidated assets of
the Company and its Affiliates, other than a sale, lease, license or other disposition of all or substantially all of the consolidated
assets of the Company and its Affiliates to an entity, more than 50 percent of the combined voting power of the voting securities
of which are owned by stockholders of the Company in substantially the same proportions relative to each other as their ownership
of the outstanding voting securities of the Company immediately prior to such sale, lease, license or other disposition;


 


(d)       individuals
who, immediately following the Effective Date, are members of the Board (the “Incumbent Board”) cease for any
reason to constitute at least a majority of the members of the Board within any 24-month period; provided, however, that if the
appointment or election (or nomination for election) of any new Board member was approved or recommended by a majority vote of
the members of the Incumbent Board then still in office (other than as a result of any settlement of a proxy or consent solicitation
contest or any action taken to avoid such a contest), such new member will, for purposes of the Plan, be considered as a member
of the Incumbent Board; or


 


(e)       the
complete dissolution or liquidation of the Company.


 


Notwithstanding the foregoing, a “Change in Control”
will not be deemed to have occurred by virtue of the consummation of any transaction or series of integrated transactions immediately
following which the record holders of the capital stock of the Company immediately prior to such transaction or series of transactions
continue to have substantially the same proportionate ownership in an entity which owns all or substantially all of the assets
of the Company immediately following such transaction or series of transactions.


 


In addition, solely with respect to any Award that constitutes
“deferred compensation” subject to Section 409A and that is payable on account of a Change in Control (including any
installments that are accelerated on account of a Change in Control), a Change in Control will occur only if such event also constitutes
a “change in the ownership,” “change in effective control,” or a “change in the ownership of a substantial
portion of assets” of the Company as those terms are defined by Section 1.409A-3(i)(5) of the Treasury Regulations, but only
to the extent necessary to establish a time or form of payment that complies with Section 409A, without altering the definition
of Change in Control for purposes of determining whether a Participant’s rights to such Award become vested or otherwise
unconditional upon the Change in Control.


 


2.6         “Code”
means the Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated and other official guidance issued
thereunder.


 


2.7         “Committee”
means the Compensation Committee of the Board, or any successor committee that the Board may designate to administer the Plan,
provided such Committee consists of two or more individuals. Each member of the Committee must be (a) a “Non-Employee
Director” within the meaning of Rule 16b-3 under the Exchange Act, and (b) a non-employee director meeting the independence
requirements for compensation committee members under the rules and regulations of the Exchange on which the shares of Common Stock
are traded. References to “Committee” include persons to whom the Committee has delegated authority pursuant to Section
3.4.


 



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2.8            “Common
Stock” means the common stock, par value $0.001 per share, of the Company, and stock of any other class or company into
which such shares may thereafter be changed.


 


2.9            “Company”
means VerifyMe, Inc., a Nevada corporation.


 


2.10          “Disability”
with respect to a Participant, has the meaning assigned to such term under the long-term disability plan maintained by the Company
or an Affiliate in which such Participant is covered at the time the determination is made, and if there is no such plan, means
the permanent inability as a result of accident or sickness to perform any and every duty pertaining to such Participant’s
occupation or employment for which the Participant is suited by reason of the Participant’s previous training, education
and experience; provided that, for Incentive Stock Options, Disability will mean a “permanent and total disability”
as defined by Section 22(e) of the Code; and provided further, that to the extent an Award subject to Section 409A is payable
upon a Participant’s Disability, a Disability will not be deemed to have occurred for such purposes unless the circumstances
would also result in a “disability” within the meaning of Section 409A, unless otherwise provided in the Award Agreement.


 


2.11          “Effective
Date” means the date on which the Plan is approved by the stockholders of the Company.


 


2.12          “Exchange”
means the Nasdaq Stock Market, or such other principal securities market on which the shares of Common Stock are traded.


 


2.13          “Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the regulations and interpretations thereunder.


 


2.14          “Exchange
Act Person” means any natural person, entity or “group” (within the meaning of Section 13(d) or 14(d) of
the Exchange Act), except that “Exchange Act Person” will not include (i) the Company or any Affiliate, (ii) any employee
benefit plan of the Company or any Affiliate or any trustee or other fiduciary holding securities under an employee benefit plan
of the Company or any Affiliate, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities,
(iv) an entity owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company; or (v) any natural person, entity or “group” (within the meaning of Section
13(d) or 14(d) of the Exchange Act) that, as of the Effective Date, is the owner, directly or indirectly, of securities of the
Company representing more than 50 percent of the combined voting power of the Company’s then outstanding securities.


 


2.15          “Fair
Market Value” of a share of Common Stock as of any specific date means the per share closing price reported by the Exchange
on such date, or, if there is no such reported closing price on such date, then the per share closing price reported by the Exchange
on the last previous day on which such closing price was reported, or such other value as determined by the Committee in accordance
with applicable law. The Fair Market Value of any property other than shares of Common Stock means the market value of such property
as determined by the Committee using such methods or procedures as it may establish from time to time.


 



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2.16          “Incentive
Stock Option” means an Option that qualifies as an incentive stock option under Section 422 of the Code.


 


2.17          “Nonqualified
Stock Option” means an Option that does not qualify as an Incentive Stock Option or which is designated a Nonqualified
Stock Option.


 


2.18          “Option”
means a right to purchase shares of Common Stock at a specified exercise price that is granted subject to certain terms and conditions
pursuant to Section 7, and includes both Incentive Stock Options and Nonqualified Stock Options.


 


2.19          “Other
Stock-Based Award” means an Award denominated in shares of Common Stock that is granted subject to certain terms and
conditions pursuant to Section 10.


 


2.20          “Participant”
means an individual who has been granted an Award under the Plan, or in the event of the death of such individual, the individual’s
beneficiary.


 


2.21          “Person”
means any individual, corporation, firm, partnership, joint venture, limited liability company, estate, trust, business association,
organization, or other entity.


 


2.22          “Prior
Plan” means the VerifyMe, Inc. 2017 Equity Incentive Plan.


 


2.23          “Restricted
Period” means the period during which Restricted Stock may not be sold, assigned, transferred, pledged, hypothecated
or otherwise disposed of.


 


2.24          “Restricted
Stock” means an Award of shares of Common Stock that is granted subject to certain terms and conditions pursuant to Section 9.


 


2.25          “Restricted
Stock Unit” means an Award of a right to receive shares of Common Stock (or an equivalent value in cash or other property,
or any combination thereof) that is granted subject to certain terms and conditions pursuant to Section 9.


 


2.26          “Section
409A” means Section 409A of the Code.


 


2.27          “Stock
Appreciation Right” means a right to receive (without payment to the Company) cash, shares of Common Stock or other property,
or any combination thereof, as determined by the Committee, based on the increase in the value of a share of Common Stock over
the per share exercise price, that is granted subject to certain terms and conditions pursuant to Section 8.


 


2.28          “Treasury
Regulations” means the tax regulations promulgated under the Code.


 


Section 3.             Administration


 


3.1          Administration
and Authority. Except as otherwise specified herein, the Plan will be administered solely by the Committee. Subject only to
Section 3.2, the Committee has all the powers vested in it by the terms of the Plan set forth herein, such powers to include exclusive
authority to select the employees and other individuals to be granted Awards under the Plan, to determine the type, size and terms
of the Award to be made to each individual selected, to determine the time when Awards will be granted, to establish performance
objectives, to prescribe the form of Award Agreement and to modify the terms of any Award that has been granted. The Committee
is authorized to interpret the Plan and the Awards granted under the Plan, to establish, amend and rescind any rules and regulations
relating to the Plan, and to make any other determinations that it deems necessary or desirable for the administration of the Plan.
The Committee may correct any defect or supply any omission or reconcile any inconsistency in the Plan or in any Award in the manner
and to the extent the Committee deems necessary or desirable to carry it into effect. Any decision of the Committee in the interpretation
and administration of the Plan, as described herein, will lie within its sole and absolute discretion and will be final, conclusive
and binding on all parties concerned.


 



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3.2          Non-Employee
Director Awards. In respect of Awards granted to non-employee directors of the Company or its Affiliates, the Board has all
the powers otherwise vested in the Committee by the terms of the Plan set forth herein, including the exclusive authority to select
the non-employee directors to be granted Awards under the Plan, to determine the type, size and terms of the Award to be made to
each non-employee director selected, to modify the terms of any Award that has been granted to a non-employee director, to determine
the time when Awards will be granted to non-employee directors and to prescribe the form of the Award Agreement embodying Awards
made under the Plan to non-employee directors.


 


3.3          Repricing
Prohibited Absent Stockholder Approval. Notwithstanding any provision of the Plan, except for adjustments pursuant to Section 12,
neither the Board nor the Committee may, without the prior approval of the stockholders of the Company, (a) reduce, directly or
indirectly, the per-share exercise price of an outstanding Option or Stock Appreciation Right after it is granted; (b) cancel an
Option or Stock Appreciation Right when the exercise price of the Option or Stock Appreciation Right exceeds the Fair Market Value
of a Share in exchange for cash or another Award (other than in connection with a Change in Control); or (c) take any other action
that is treated as a repricing under United States generally accepted accounting principles or by the rules or regulations of the
Exchange.


 


3.4          Delegation.
The Committee may authorize any one or more of its members or any officer of the Company to execute and deliver documents or to
take any other action on behalf of the Committee with respect to Awards made or to be made to Participants, subject to the requirements
of applicable law, including without limitation, Section 16 of the Exchange Act.


 


3.5          Indemnification.
No member of the Committee and no officer of the Company will be liable for anything done or omitted to be done by him, by any
other member of the Committee or by any officer of the Company in connection with the performance of duties under the Plan, except
for his own willful misconduct or gross negligence, or as expressly provided by applicable law, and the Company will indemnify
each member of the Committee and officer of the Company against any such liability.


 


Section 4.             Participation


 


4.1          Eligible
Individuals. Consistent with the purposes of the Plan, subject to Section 3.2, the Committee will have exclusive power
to select the employees and non-employee directors of the Company and its Affiliates and other individuals performing services
for the Company and its Affiliates who may participate in the Plan and be granted Awards under the Plan.


 


4.2          Condition
to Receipt of Awards. Unless otherwise waived by the Committee, no prospective Participant will have any rights with respect
to an Award unless and until such Participant has executed an Award Agreement evidencing the Award, delivered a fully executed
copy thereof to the Company, and otherwise complied with the applicable terms and conditions of such Award.


 



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Section 5.             Shares
Subject to Plan


 


5.1          Maximum
Number of Shares that May Be Issued.


 


(a)       Available
Shares. Subject to adjustment as provided in Section 12, the maximum number of shares of Common Stock reserved and available
for grant and issuance pursuant to the Plan as of the Effective Date will be (i) 1,069,110, plus (ii) the number of shares of Common
Stock available for issuance under the Prior Plan on the Effective Date. If the Plan is approved by the stockholders of the Company
on the Effective Date, no awards may be granted under the Prior Plan on or after the Effective Date.


 


(b)       Share
Counting. For purposes of counting shares against the maximum number of shares of Common Stock that may be issued under the
Plan as described in Section 5.1(a), on the date of grant, Awards denominated solely in shares of Common Stock (such as Options
and Restricted Stock) and other Awards that may be exercised for, settled in or convertible into shares of Common Stock will be
counted against the Plan reserve on the date of grant of the Award based on the maximum number of shares that may be issued pursuant
to the Award, as determined by the Committee.


 


(c)       Shares
Added Back. Shares of Common Stock related to Awards issued under the Plan or the Prior Plan that are forfeited, canceled,
expired or otherwise terminated without the issuance of shares of Common Stock will be added back and again available for issuance
under the Plan. In addition, shares of Common Stock that are retained or reacquired by the Company to satisfy the exercise price
or purchase price of an Award or to satisfy the tax withholding obligation in connection with an Award, as well as any shares of
Common Stock covered by an Award that is settled in cash, will be added back and again be available for issuance under the Plan.


 


(d)       Source
of Shares. Shares of Common Stock issued pursuant to the Plan may be authorized but unissued shares, treasury shares, reacquired
shares or any combination thereof.


 


(e)       Assumed
or Substituted Awards. Awards granted through the assumption of, or substitution for, outstanding awards previously granted
by a company acquired by the Company or any Affiliate, or with which the Company or any Affiliate combines, will not reduce the
maximum number of shares of Common Stock that may be issued under the Plan as described in Section 5.1(a).


 


(f)       Fractional
Shares. No fractional shares of Common Stock may be issued under the Plan, and unless the Committee determines otherwise, an
amount in cash equal to the Fair Market Value of any fractional share of Common Stock that would otherwise be issuable will be
paid in lieu of such fractional share of Common Stock. The Committee may, in its sole discretion, cancel, terminate, otherwise
eliminate or transfer or pay other securities or other property in lieu of issuing any fractional share of Common Stock.


 


Section 6.             Awards
Under Plan


 


6.1          Types
of Awards. Awards under the Plan may include one or more of the following types: Options, Stock Appreciation Rights, Restricted
Stock, Restricted Stock Units and Other Stock-Based Awards.


 



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6.2          Dividend
Equivalents. Other than with respect to Options or Stock Appreciation Rights, the Committee may choose, at the time of the
grant of an Award or any time thereafter up to the time of the Award’s payment, to include or to exclude as part of such
Award an entitlement to receive cash dividends or dividend equivalents, subject to such terms, conditions, restrictions or limitations,
if any, as the Committee may establish. Dividends and dividend equivalents will be paid in such form and manner (i.e., lump sum
or installments), and at such times as the Committee will determine.


 


6.3          Transferability.
An Award and a Participant’s rights and interest under the Award, may not be sold, assigned or transferred, hypothecated
or encumbered in whole or in part either directly or by operation of law or otherwise (except in the event of a Participant’s
death) including, but not by way of limitation, execution, levy, garnishment, attachment, pledge, bankruptcy or in any other manner;
provided, however, that the Committee may allow a Participant to assign or transfer without consideration an Award (other than
an Incentive Stock Option) to one or more members of his immediate family, to a partnership of which the only partners are the
Participant or members of the Participant’s immediate family, or to a trust established by the Participant for the exclusive
benefit of the Participant or one or more members of his immediate family.


 


6.4          Award
Agreement. Unless otherwise determined by the Committee, each Award will be evidenced by an Award Agreement in such form as
the Committee will prescribe from time to time in accordance with the Plan, including a written agreement, contract, certificate
or other instrument or document containing the terms and conditions of an individual Award granted under the Plan which may, in
the discretion of the Company, be transmitted electronically. Each Award and Award Agreement will be subject to the terms and conditions
of the Plan.


 


6.5          Method
of Payment. The Committee may, in its discretion, settle any Award through the payment of cash, the delivery of shares of Common
Stock or other property, or a combination thereof, as the Committee determines or as specified by the Plan or an Award Agreement.
Any Award settlement, including payment deferrals, may be subject to conditions, restrictions and contingencies as the Committee
determines.


 


6.6          Death,
Disability and Termination. The Committee may include in an Award Agreement provisions related to the death, Disability or
termination of employment or service of a Participant, including without limitation the acceleration of the exercisability, vesting
or settlement of, or the lapse of restrictions or deemed satisfaction of performance objectives with respect to, an Award.


 


6.7          Change
in Control. The Committee may include in an Award Agreement provisions related to a Change in Control, including without limitation
the acceleration of the exercisability, vesting or settlement of, or the lapse of restrictions or deemed satisfaction of performance
objectives with respect to, an Award.


 


6.8          Forfeiture
Provisions. The Committee may, in its discretion, provide in an Award Agreement that an Award will be canceled if the Participant,
without the consent of the Company, while employed by or providing services to the Company or any Affiliate or after termination
of such employment or service, violates a non-competition, non-solicitation or non-disclosure covenant or agreement, or otherwise
engages in activity that is in conflict with or adverse to the interest of the Company or any Affiliate, including fraud or conduct
contributing to any financial restatements or irregularities, as determined by the Committee in its sole discretion. Notwithstanding
the foregoing, none of the non-disclosure restrictions in this Section 6.8 or in any Award Agreement will, or will be interpreted
to, impair the Participant from exercising any legally protected whistleblower rights (including under Rule 21F under the Exchange
Act).


 



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6.9          Recoupment
Provisions. Notwithstanding anything in the Plan or in any Award Agreement to the contrary, the Company will be entitled to
the extent required by applicable law (including, without limitation, Section 10D of the Exchange Act and any regulations promulgated
with respect thereto) or Exchange listing requirement, in each case as in effect from time to time, to recoup compensation of whatever
kind paid under the Plan by the Company at any time.


 


6.10          Non-Employee
Director Award Limitation. The aggregate of (a) the grant date fair value for financial reporting purposes of any Awards granted
during any fiscal year to a non-employee director, and (b) the total amount of any cash fees or other property paid to such non-employee
director during the fiscal year, in respect of the director’s service as a member of the Board during such year, may not
exceed $300,000. The independent members of the Board may make exceptions to this limit for a non-executive chair of the Board,
provided that the non-employee director receiving such additional compensation may not participate in the decision to award such
compensation.


 


Section 7.             Options


 


7.1          Grant
of Options. The Committee may grant Awards of Options. The Committee may grant Incentive Stock Options provided the terms of
such grants comply with Section 7.4 and the requirements of Section 422 of the Code. Each Option granted under the Plan will
comply with the following terms and conditions, and with such other terms and conditions as the Committee, in its discretion, may
establish.


 


7.2          Exercise
Price; Expiration Date. Except for Options granted through the assumption of, or substitution for, outstanding awards previously
granted by a company acquired by the Company or any Affiliate, or with which the Company or any Affiliate combines, the exercise
price will be equal to or greater than the Fair Market Value of the shares of Common Stock subject to such Option on the date that
the Option is granted. The Committee in its discretion will establish the expiration date of an Option; provided that in no event
will the expiration date be later than 10 years from the date that the Option is granted. Notwithstanding the foregoing, in the
event that on the expiration date of a Nonqualified Stock Option, (a) the exercise of the Nonqualified Stock Option is prohibited
by applicable law, or (b) shares of Common Stock may not be purchased or sold by certain employees or directors of the Company
due to the “black-out period” under a Company policy or a “lock-up” agreement undertaken in connection
with an issuance of securities by the Company, the Committee may, to the extent permitted by Section 409A, extend the expiration
date of the Nonqualified Stock Option, but not beyond a period of 30 days following the end of the legal prohibition, black-out
period or lock-up agreement period, and provided further that no extension may be made if the exercise price of the Nonqualified
Stock Option is above the Fair Market Value of a share of Common Stock on the initial expiration date.


 


7.3          Exercisability.
The Option will not be exercisable unless the Option has vested, and payment in full of the exercise price for the shares of Common
Stock being acquired thereunder at the time of exercise is made in such form as the Committee may determine in its discretion,
including, but not limited to:


 


(a)       cash;


 


(b)       if
permitted by the Committee, by instructing the Company to withhold a number of shares of Common Stock that would otherwise be issued
having a Fair Market Value equal to the applicable portion of the exercise price being so paid;


 



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(c)       if
permitted by the Committee, by tendering (actually or by attestation) to the Company a number of previously acquired shares of
Common Stock that have been held by the Participant for at least six months (or such short period, if any, determined by the Committee
in consideration of applicable accounting standards) and that have a Fair Market Value equal to the applicable portion of the exercise
price being so paid;


 


(d)       if
permitted by the Committee, by authorizing a third party to sell, on behalf of the Participant, the appropriate number of shares
of Common Stock otherwise issuable to the Participant upon the exercise of the Option and to remit to the Company a sufficient
portion of the sale proceeds to pay the entire exercise price and any tax withholding resulting from such exercise; or


 


(e)       any
combination of the foregoing.


 


7.4          Limitations
for Incentive Stock Options. The terms and conditions of any Incentive Stock Options granted hereunder will comply with the
requirements of Section 422 of the Code. Incentive Stock Options may be granted only to employees of the Company or an Affiliate,
provided such Affiliate is also a “parent corporation” of the Company within the meaning of Section 424(e) of the Code
or a “subsidiary corporation” of the Company within the meaning of Section 424(f) of the Code, on the date of grant.
The aggregate Fair Market Value (determined as of the time the Incentive Stock Option is granted) of the shares of Common Stock
with respect to which Incentive Stock Options are exercisable for the first time by any individual during any calendar year (under
all plans of the Company and its Affiliates) may not exceed $100,000, and any Incentive Stock Option or portions thereof which
exceed such limit (according to the order in which they were granted) will be treated as a Nonqualified Stock Option. Incentive
Stock Option may not be transferable by a Participant other than by will or the laws of descent and distribution and may only be
exercisable during the Participant’s lifetime by the Participant. If, at the time an Incentive Stock Option is granted, the
employee recipient owns (after application of the rules contained in Section 424(d) of the Code) shares of Common Stock possessing
more than 10 percent of the total combined voting power of all classes of stock of the Company or its subsidiaries, then: (a) the
exercise price for such Incentive Stock Option will be at least 110 percent of the Fair Market Value of the shares of Common Stock
subject to such Incentive Stock Option on the date of grant; and (b) such Incentive Stock Option will not be exercisable after
the date five years from the date such Incentive Stock Option is granted. The maximum number of shares of Common Stock that may
be issued under the Plan pursuant to Incentive Stock Options may not exceed, in the aggregate, 1,000,000.


 


Section 8.             Stock
Appreciation Rights


 


8.1          Grant
of Stock Appreciation Rights. The Committee may grant Awards of Stock Appreciation Rights. Each Award of Stock Appreciation
Rights granted under the Plan will comply with the following terms and conditions, and with such other terms and conditions as
the Committee, in its discretion, may establish.


 


8.2          Exercise
Price; Expiration Date. Except for Stock Appreciation Rights granted through the assumption of, or substitution for, outstanding
awards previously granted by a company acquired by the Company or any Affiliate, or with which the Company or any Affiliate combines,
the exercise price will be equal to or greater than the Fair Market Value of the shares of Common Stock subject to such Stock Appreciation
Right on the date that the Stock Appreciation Right is granted. The Committee in its discretion will establish the expiration date
of a Stock Appreciation Right; provided that in no event will the expiration date be later than 10 years from the date that the
Stock Appreciation Right is granted. Notwithstanding the foregoing, in the event that on the expiration date of a Stock Appreciation
Right, (a) the exercise of the Stock Appreciation Right is prohibited by applicable law, or (b) shares of Common Stock may not
be purchased or sold by certain employees or directors of the Company due to the “black-out period” under a Company
policy or a “lock-up” agreement undertaken in connection with an issuance of securities by the Company, the Committee
may, to the extent permitted by Section 409A, extend the expiration date of the Stock Appreciation Right, but not beyond a
period of 30 days following the end of the legal prohibition, black-out period or lock-up agreement period, and provided further
that no extension may be made if the exercise price of the Stock Appreciation Right is above the Fair Market Value of a share of
Common Stock on the initial expiration date.


 



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8.3          Exercisability.
Stock Appreciation Rights may not be exercisable unless the Stock Appreciation Rights have vested.


 


8.4          Exercise
and Settlement. An Award of Stock Appreciation Rights entitles the Participant to exercise such Award and to receive from the
Company in exchange therefore, without payment to the Company, that number of shares of Common Stock having an aggregate Fair Market
Value equal to (or, in the discretion of the Committee, less than) the excess of the Fair Market Value of one share of Common Stock,
at the date of such exercise, over the exercise price per share, times the number of shares of Common Stock for which the Award
is being exercised. The Committee will be entitled in its discretion to elect to settle the obligation arising out of the exercise
of a Stock Appreciation Right by the payment of cash or other property, or any combination thereof, as determined by the Committee,
equal to the aggregate Fair Market Value of the shares of Common Stock it would otherwise be obligated to deliver.


 


Section 9.             Restricted
Stock and Restricted Stock Units


 


9.1          Grant
of Restricted Stock and Restricted Stock Units. The Committee may grant Awards of Restricted Stock or Restricted Stock Units.
Each Award of Restricted Stock or Restricted Stock Units under the Plan will comply with the following terms and conditions, and
with such other terms and conditions as the Committee, in its discretion, may establish.


 


9.2          Restricted
Stock Issuance. Shares of Common Stock issued to a Participant in accordance with the Award of Restricted Stock may be issued
in certificate form or through the entry of an uncertificated book position on the records of the Company’s transfer agent
and registrar. The Company may impose appropriate restrictions on the transfer of such shares of Common Stock, which will be evidenced
in the manner permitted by law as determined by the Committee in its discretion, including but not limited to (a) causing
a legend or legends to be placed on any certificates evidencing such Restricted Stock, or (b) causing “stop transfer”
instructions to be issued, as it deems necessary or appropriate.


 


9.3          Vesting
Conditions. The vesting of an Award of Restricted Stock or Restricted Stock Units may be conditioned upon the attainment of
specific performance objectives as the Committee may determine, including but not limited to such performance objectives described
in Section 11.2.


 


9.4          Stockholder
Rights. Unless otherwise determined by the Committee in its discretion, prior to the expiration of the Restricted Period, a
Participant to whom an Award of Restricted Stock has been made will have ownership of such shares of Common Stock, including the
right to vote the same and to receive dividends or other distributions made or paid with respect to such shares of Common Stock,
subject, however, to the restrictions and limitations imposed thereon pursuant to the Plan or Award Agreement.


 



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Section 10.         Other
Stock-Based Awards


 


10.1       Grant
of Other Stock-Based Awards. The Committee may grant Other Stock-Based Awards. Each Other Stock-Based Award granted under the
Plan will comply with the following terms and conditions, and with such other terms and conditions as the Committee, in its discretion,
may establish.


 


10.2       Vesting
Conditions. The vesting of Other Stock-Based Awards may be conditioned upon the attainment of specific performance objectives
as the Committee may determine, including but not limited to such performance objectives described in Section 11.2.


 


10.3       Settlement.
The Committee will be entitled in its discretion to settle the obligation under an Other Stock-Based Award by the payment of cash,
shares of Common Stock or other property, or any combination thereof.


 


Section 11.          Performance
Awards


 


11.1       Grant
of Performance Awards. The Committee may grant Awards of Restricted Stock, Restricted Stock Units or Other Stock-Based Awards
as “Performance Awards,” with the vesting or payment of such Awards based on the achievement of specified performance
objectives.


 


11.2       Performance
Objectives.


 


(a)       Amounts
earned under Performance Awards will be based upon the attainment of performance objectives established by the Committee. Such
performance objectives may vary by Participant and by Award, and may be based upon the attainment of specific or per-share amounts
of, or changes in, one or more, or a combination of two or more, of the following: (i) earnings including operating income, economic
income, economic net income, earnings before or after taxes, earnings before or after interest, depreciation, amortization, or
extraordinary or special items or book value per share (which may exclude nonrecurring items); (ii) pre-tax income or after-tax
income; (iii) earnings per common share (basic or diluted); (iv) operating profit; (v) revenue, revenue growth or rate of
revenue growth; (vi) return on assets (gross or net), return on investment, return on capital, or return on equity; (vii) returns
on sales or revenues; (viii) operating expenses; (ix) stock price appreciation; (x) cash flow, free cash flow, cash flow return
on investment (discounted or otherwise), net cash provided by operations, or cash flow in excess of cost of capital; (xi) implementation
or completion of critical projects or processes; (xii) economic value created; (xiii) cumulative earnings per share growth;
(xiv) operating margin or profit margin; (xv) common stock price or total stockholder return; (xvi) cost targets, reductions
and savings, productivity and efficiencies; (xvii) strategic business criteria, consisting of one or more objectives based on meeting
specified market penetration, geographic business expansion, customer satisfaction, employee satisfaction, human resources management,
supervision of litigation, information technology, and goals relating to acquisitions, divestitures, joint ventures and similar
transactions, and budget comparisons; (xviii) personal professional objectives, including any of the foregoing performance goals,
the implementation of policies and plans, the negotiation of transactions, the development of long-term business goals, formation
of joint ventures, research or development collaborations, and the completion of other corporate transactions; (xix) such other
performance objectives determined by the Committee in its sole discretion; and (xx) any combination of any of the foregoing. The
Committee may provide that, in measuring the achievement of the performance objectives, an Award may include or exclude items such
as realized investment gains and losses, extraordinary, unusual, non-recurring or infrequently recurring items, asset write-downs,
effects of force majeure events (such as a pandemic), accounting changes, currency fluctuations, acquisitions, divestitures, reserve-strengthening
and other non-operating items.


 



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(b)       Where
applicable, the performance goals may be expressed in terms of attaining a specified level of the particular criteria or the attainment
of a percentage increase or decrease in the particular criteria, and may be applied to one or more of the Company or an Affiliate,
or a division or strategic business unit of the Company or an Affiliate, or may be applied to the performance of the Company relative
to a market index, a group of other companies or a combination thereof, or other pre-established target or designated comparison
group, all as determined by the Committee. The performance goals may include a threshold level of performance below which no payment
will be made (or no vesting will occur), levels of performance at which specified payments will be made (or specified vesting will
occur), and a maximum level of performance above which no additional payment will be made (or at which full vesting will occur).


 


Section 12.          Dilution
and Other Adjustments


 


12.1       Adjustment
for Corporate Transaction or Change in Corporate Capitalization. In the event of any change in the outstanding shares of Common
Stock of the Company by reason of any corporate transaction or change in corporate capitalization such as a stock split, reverse
stock split, stock dividend, split-up, split-off, spin-off, recapitalization, merger, consolidation, rights offering, reorganization,
combination, consolidation, subdivision or exchange of shares, a sale by the Company of all or part of its assets, any distribution
to stockholders other than a normal cash dividend, partial or complete liquidation of the Company or other extraordinary or unusual
event, the Committee or Board, as applicable, will make such adjustment in (a) the class and maximum number of shares of Common
Stock that may be delivered under the Plan as described in Section 5.1, (b) the class, number and exercise price of outstanding
Options and Stock Appreciation Rights, and (c) the class and number of shares subject to any other Awards granted under the
Plan (provided that the number of shares of any class subject to Awards will always be a whole number) and the terms of such Awards
(including, without limitation, any applicable performance goals), as may be determined to be appropriate by the Committee or Board,
as applicable, and such adjustments will be final, conclusive and binding for all purposes of the Plan.


 


12.2       Adjustment
for Merger or Consolidation. In the event of any merger, consolidation or similar transaction as a result of which the holders
of shares of Common Stock receive consideration consisting exclusively of securities of the surviving entity (or the parent of
the surviving entity) in such transaction, the Committee or Board, as applicable, will, to the extent deemed appropriate by the
Committee or Board, as applicable, adjust each Award outstanding on the date of such merger, consolidation or similar transaction
so that it pertains and applies to the securities which a holder of the number of shares of Common Stock subject to such Award
would have received in such merger, consolidation or similar transaction.


 


12.3       Assumption
or Substitution of Awards. In the event of a dissolution or liquidation of the Company; a sale of all or substantially all
of the Company’s assets (on a consolidated basis); or a merger, consolidation or similar transaction involving the Company
in which the holders of shares of Common Stock receive securities and/or other property, including cash, other than shares of the
surviving entity in such transaction (or the parent of such surviving entity), the Committee or Board, as applicable, will, to
the extent deemed appropriate by the Committee or Board, as applicable, have the power to provide for the exchange of each Award
(whether or not then exercisable or vested) for an Award with respect to: (a) some or all of the property which a holder of
the number of shares of Common Stock subject to such Award would have received in such transaction; or (b) securities of the
acquirer or surviving entity (or parent of such acquirer or surviving entity) and, incident thereto, make an equitable adjustment
as determined by the Committee or Board, as applicable, in the exercise price of the Award, or the number of shares or amount of
property subject to the Award or provide for a payment (in cash or other property) to the Participant to whom such Award was granted
in partial consideration for the exchange of the Award. In addition, the Committee will, to the extent deemed appropriate by the
Committee or Board, as applicable, have the power to cancel, effective immediately prior to the occurrence of such event, each
Award (whether or not then exercisable or vested), and, in full consideration of such cancellation, pay to the Participant to whom
such Award was granted an amount in cash, for each share of Common Stock subject to such Award, equal to the value, as determined
by the Committee or Board, as applicable, of such Award, provided that with respect to any outstanding Option or Stock Appreciation
Right such value will be equal to the excess of (i) the value, as determined by the Committee or Board, as applicable, of
the property (including cash) received by the holder of shares of Common Stock as a result of such event, over (ii) the exercise
price of such Option or Stock Appreciation Right, provided further that the value of any outstanding Option or Stock Appreciation
Right will be zero where the exercise price of such Option or Stock Appreciation Right is greater than the value, as determined
by the Committee or Board, as applicable, of the property (including cash) received by the holder of shares of Common Stock as
a result of such event; and that no change to the original timing of payment will be made to the extent it would violate Section 409A.


 



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Section 13.          Amendment
and Termination


 


13.1       Amendment.
The Plan may be amended in whole or in part at any time and from time to time by the Board, and the terms of any outstanding Award
under the Plan may be amended from time to time by the Committee or Board, as applicable, in its discretion in any manner that
it deems necessary or appropriate; provided however, that no amendment may be made without stockholder approval if such amendment
would:


 


(a)       increase
the number of shares available for grant specified in Section 5.1(a) (other than pursuant to Section 12);


 


(b)       change
the class of persons eligible to receive Incentive Stock Options;


 


(c)       decrease
the minimum Option exercise price set forth in Section 7.2 or the minimum Stock Appreciation Rights exercise price set forth
in Section 8.2 (in each case, other than changes made pursuant to Section 12);


 


(d)       amend
or repeal the prohibition against repricing or exchange set forth in Section 3.3; or


 


(e)       require
stockholder approval under applicable law, regulation, rule or Exchange listing requirement.


 


No such amendment may adversely affect in a material manner
any right of a Participant under an Award without his written consent. Any stockholder approval requirement under the Plan will
be met if such approval is obtained in accordance with applicable law. Notwithstanding the foregoing, any amendment to the Plan
or any outstanding Award under the Plan will be made in a manner as to ensure that an Award intended to be exempt from Section
409A will continue to be exempt from Section 409A and that an Award intended to comply with Section 409A will continue to
comply with Section 409A.


 


13.2       Termination.
The Plan may be suspended in whole or in part at any time and from time to time by the Board. The Plan will terminate upon the
adoption of a resolution of the Board terminating the Plan. No Award may be granted under the Plan after the date that is 10 years
from the date the Plan was last approved and adopted by the stockholders of the Company. No termination of the Plan will materially
alter or impair any of the rights or obligations of any person, without his consent, under any Award theretofore granted under
the Plan.


 



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Section 14.         Miscellaneous


 


14.1       Loans.
No loans from the Company or any Affiliate to a Participant will be permitted in connection with the Plan.


 


14.2       Reservation
of Rights of Company. No employee or other person will have any claim or right to be granted an Award under the Plan. Neither
the Plan nor any action taken hereunder will be construed as giving any employee or other person any right to continue to be employed
by or perform services for the Company or any Affiliate, and the right to terminate the employment of or performance of services
by any Participant at any time and for any reason is specifically reserved.


 


14.3       Non-Uniform
Treatment. Determinations made by the Committee under the Plan need not be uniform and may be made selectively among eligible
individuals under the Plan, whether or not such eligible individuals are similarly situated.


 


14.4       General
Conditions of Awards. No Participant or other person will have any right with respect to the Plan, the shares of Common Stock
reserved for issuance under the Plan or in any Award, contingent or otherwise, until written evidence of the Award has been delivered
to the recipient and all the terms, conditions and provisions of the Plan and the Award applicable to such recipient (and each
person claiming under or through him) have been met.


 


14.5       Rights
as a Stockholder. Unless otherwise determined by the Committee in its discretion, a Participant holding Options, Stock Appreciation
Rights, Restricted Stock Units or Other Stock-Based Awards will have no rights as a stockholder with respect to any shares of Common
Stock (or as a holder with respect to other securities), if any, issuable pursuant to any such Award until the date of the issuance
of a stock certificate to him or the entry on his behalf of an uncertificated book position on the records of the Company’s
transfer agent and registrar for such shares of Common Stock or other instrument of ownership, if any. Except as provided in Section 12,
no adjustment will be made for dividends, distributions or other rights (whether ordinary or extraordinary, and whether in cash,
securities, other property or other forms of consideration, or any combination thereof) for which the record date is prior to the
date such book entry is made or a stock certificate or other instrument of ownership, if any, is issued.


 


14.6       Compliance
with Applicable Laws. No shares of Common Stock or other property may be issued or paid hereunder with respect to any Award
unless counsel for the Company is satisfied that such issuance will be in compliance with applicable federal, state, local and
foreign legal, securities exchange and other applicable requirements. The Company will be under no obligation to effect the registration
pursuant to the Securities Act of 1933, as amended, of any shares of Common Stock to be issued hereunder or to effect similar compliance
under any state or local laws.


 


14.7       Withholding
of Taxes. The Company and its Affiliates will have the authority and right to deduct or withhold from any payment made under
the Plan, or require a Participant to remit to the Company or Affiliate, the federal, state or local income or other taxes required
by law to be withheld with respect to the exercise, lapse of restriction, settlement, payment or other taxable event of any Award
under the Plan. It will be a condition to the obligation of the Company to issue shares of Common Stock or other property, or any
combination thereof, upon exercise, settlement or payment of any Award under the Plan, that the Participant remit to the Company,
upon its demand, such amount as may be requested by the Company for the purpose of satisfying any liability to withhold federal,
state or local income or other taxes. If the amount requested is not paid, the Company may refuse to issue or pay shares of Common
Stock or other property, or any combination thereof. The Committee may, in its discretion, permit an eligible Participant to elect
to pay a portion or all of the amount requested by the Company for such taxes with respect to such Award, at such time and in such
manner as the Committee deems to be appropriate, including, but not limited to, by authorizing the Company to withhold, or agreeing
to surrender to the Company on or about the date such tax liability is determinable, shares of Common Stock or other property,
or any combination thereof that would otherwise be distributed, or have been distributed, as the case may be, pursuant to such
Award to such person, having a Fair Market Value equal to the minimum amount required to be withheld, or if permitted by the Company,
up to such greater amount that will not trigger adverse accounting consequences and is permitted under applicable tax withholding
rules.


 



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14.8         Unfunded
Nature of Plan. The Plan will be unfunded. The Company will not be required to establish any special or separate fund or to
make any other segregation of assets to assure the payment of any Award under the Plan, and the rights to the payment of Awards
will be no greater than the rights of the Company’s general creditors.


 


14.9         Consent. By accepting any Award or other benefit under the Plan, each Participant and each person
claiming under or through him will be conclusively deemed to have indicated his acceptance and ratification of, and consent
to, any action taken under the Plan by the Company, the Board or the Committee.


 


14.10       No
Warranty of Tax Effect. Although the Company may structure an Award to qualify for favorable federal, state, local or foreign
tax treatment, or to avoid adverse tax treatment, no person connected with the Plan in any capacity, including, but not limited
to, the Company and its directors, officers, agents and employees, makes any representation, commitment or guarantee that any intended
tax treatment will be applicable with respect to any Award under the Plan, or that such tax treatment will apply to or be available
to a Participant or his or her beneficiary. Furthermore, the existence of an Award will not affect the right or power of the Company
or its stockholders to take any corporate action, regardless of the potential effect of such action on the tax treatment of an
Award under the Plan.


 


14.11       Interpretation.
Unless the context indicates otherwise, references to “Sections” in the Plan refer to Sections of the Plan. Headings
of Sections herein are inserted only for convenience of reference and are not to be considered in the construction of the Plan.
In the Plan, the use of the masculine pronoun will include the feminine and the use of the singular will include the plural, as
appropriate.


 


14.12       Severability.
If any provision of the Plan is held unlawful or otherwise invalid or unenforceable in whole or in part by a court of competent
jurisdiction, such provision will be deemed limited to the extent that such court of competent jurisdiction deems it lawful,
valid or enforceable and as so limited will remain in full force and effect, and will not affect any other provision of the
Plan or part thereof, each of which will remain in full force and effect.


 


14.13       Choice
of Law. The validity, construction, interpretation, administration and effect of the Plan, and of its rules and regulations,
and rights relating to the Plan and to Awards granted under the Plan, will be governed by the substantive laws, but not the choice
of law rules, of the State of Nevada.


 



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14.14       Section
409A. Awards granted under the Plan are intended to qualify for an exception from or comply with Section 409A, and the Plan
and Award Agreements will be administered, construed and interpreted in accordance with such intent. Notwithstanding the foregoing,
the Company makes no representation that Awards qualify for an exception from or comply with Section 409A and in no event will
the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by a Participant
on account of non-compliance with Section 409A. Notwithstanding anything in the Plan or any Award Agreement to the contrary, if
a Participant is a “specified employee” (within the meaning of Section 409A(2)(B)) as of the date of such Participant’s
separation from service (as determined pursuant to Section 409A), then to the extent any Award payable to such Participant on account
of such separation from service would be considered nonqualified deferred compensation under Section 409A, such payment or benefit
will be paid or provided in a lump sum upon the earlier of the first day of the seventh month following such separation from service
and the date of the Participant’s death. Unless the Committee determines otherwise, any provision of the Plan that would
cause the grant of an Award or the payment, settlement or deferral thereof to fail exception from or compliance with Section 409A
may be amended to qualify for exception from or comply with Section 409A, which may be made on a retroactive basis, in accordance
with Section 409A.


 


*         *         *         *         *


 


 


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