Exhibit 10.2


 


RBC 2017 LONG-TERM EQUITY INCENTIVE PLAN


 


As of September 13, 2017 (“Effective
Date”)


 


1    Purpose.


 


This plan shall be
known as the RBC 2017 Long-Term Equity Incentive Plan (the “Plan”). The purpose of the Plan shall be to promote the
long-term growth and profitability of RBC Bearings Incorporated (the “ Company ”) and its Subsidiaries by (i) providing
certain directors, officers and employees of, and certain other individuals who perform services for, or to whom an offer of employment
has been extended by, the Company and its Subsidiaries with incentives to maximize stockholder value and otherwise contribute to
the success of the Company and (ii) enabling the Company to attract, retain and reward the best available persons for positions
of responsibility. Grants (“ Grants ”) of incentive or non-qualified stock options, stock appreciation rights
(“ SAR s”), either alone or in tandem with options, restricted stock, performance awards or any combination
of the foregoing may be made under the Plan. This Plan supercedes any prior plans, and any Grant hereunder supercedes any prior
written agreement pursuant to which such Grant is made.


 


2    Definitions.


 


2.1             “Award
Agreement” means any written agreement between the Company and any person pursuant to which the Company makes any Grant
under the Plan.


 


2.2            “Board
of Directors” and “Board” mean the board of directors of the Company.


 


2.3            “Cause”
means, unless otherwise defined in any Award Agreement, the occurrence of one or more of the following events:


 


2.3.1     conviction
of a felony or any crime or offense lesser than a felony involving the property of the Company or a Subsidiary or commission of
an act involving fraud or dishonesty; or, in the case of any of the foregoing, a plea of nolo contendere with respect thereto;


 


2.3.2     conduct
that has caused demonstrable and serious injury to the Company or a Subsidiary, reputational, monetary or otherwise;


 


2.3.3     willful
refusal to perform or substantial disregard of duties properly assigned, as determined by the Company;


 


2.3.4     willful
misrepresentation or material non-disclosure to the Board;


 


2.3.5     engaging
willfully in misconduct in connection with the performance of any of one’s duties, including, without limitation, the misappropriation
of funds or securing or attempting to secure personally any profit in connection with any transaction entered into on behalf of
the Company or its Subsidiaries or affiliates;


 


2.3.6     willful
breach of duty of loyalty to the Company or, if applicable, a Subsidiary or any other active disloyalty to the Company or, if applicable,
any Subsidiary, including, without limitation, willfully aiding a competitor or, without duplication of clause (vii), improperly
disclosing confidential information;


 


2.3.7     willful
breach of any confidentiality or non-disclosure agreement with the Company or any Subsidiary; or


 


2.3.8     material
violation of any code or standard of behavior generally applicable to employees (or executive employees, in the case of an executive
of the Company or any Subsidiary) of the Company or any Subsidiary.


 






    


     


    

 


2.4           “Change
in Control” means, unless otherwise defined in any Award Agreement,


 


2.4.1     if
any “person” or “group” as those terms are used in Sections 13(d) and 14(d) of the Exchange Act or any successors
thereto, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act or any successor thereto),
directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company’s then
outstanding securities, provided , that the acquisition of additional securities by any person or group that owns 50% or
more of the voting power prior to such acquisition of additional securities shall not be a Change in Control; or


 


2.4.2     during
any twelve-month period, individuals who at the beginning of such period constitute the Board and any new directors whose election
by the Board or nomination for election by the Company’s stockholders was approved by at least a majority of the directors then
still in office who either were directors at the beginning of the period or whose election was previously so approved, cease for
any reason to constitute a majority thereof; or


 


2.4.3     the
stockholders of the Company approve a merger or consolidation of the Company with any other corporation, other than a merger or
consolidation (A) which would result in all or a portion of the voting securities of the Company outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving
entity) more than 50% of the combined voting power of the voting securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation or (B) by which the corporate existence of the Company is not affected and following
which the Company’s chief executive officer and directors retain their positions with the Company (and constitute at least a majority
of the Board) and such merger or consolidation is consummated; or


 


2.4.4     the
stockholders of the Company approve an agreement for the sale or disposition by the Company of all or substantially all the Company’s
assets and such sale or disposition is consummated.


 


2.5            “Code”
means the Internal Revenue Code of 1986, as amended.


 


2.6            “Committee”
means the Compensation Committee of the Board, which shall consist solely of two or more outside directors.


 


2.7            “Common
Stock” means the common stock, par value $0.01 per share, of the Company, and any other shares into which such stock
may be changed by reason of a recapitalization, reorganization, merger, consolidation or any other change in the corporate structure
or capital stock of the Company.


 


2.8            “Disability”
means a disability that would entitle an eligible participant to payment of monthly disability payments under any Company disability
plan or as otherwise determined by the Committee; provided that in any instance where a grant to a participant is treated as “deferred
compensation” within the meaning of Section 409A of the Code, “Disability” shall be interpreted consistently
with the meaning of Section 409A of the Code and guidance issued thereunder.


 


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


 


2.10          “Fair
Market Value” of a share of Common Stock of the Company means, as of the date in question, the officially-quoted closing
selling price of the stock (or if no selling price is quoted, the bid price) on the principal securities exchange or market on
which the Common Stock is then listed for trading (including, for this purpose, the New York Stock Exchange or the Nasdaq National
Market) (the “ Market ”) for the applicable trading day or, if the Common Stock is not then listed or quoted
in the Market, the Fair Market Value shall be the fair value of the Common Stock determined in good faith by the Board using any
reasonable method; provided, however, that when shares received upon exercise of an option are immediately sold in the open market,
the net sale price received may be used to determine the Fair Market Value of any shares used to pay the exercise price or applicable
withholding taxes and to compute the withholding taxes.


 


2.11          “Incentive
Stock Option” means an option conforming to the requirements of Section 422 of the Code and/or any successor thereto.


 






    


     


    

 


2.12          “Initial
Public Offering” means an underwritten initial public offering and sale of any shares of Common Stock pursuant to an
effective registration statement under the Securities Act.


 


2.13          “Non-Employee
Director” has the meaning given to such term in Rule 16b-3 under the Exchange Act and/or any successor thereto.


 


2.14          “Non-qualified
Stock Option” means any stock option other than an Incentive Stock Option.


 


2.15          “Other
Securities” mean securities of the Company other than Common Stock, which may include, without limitation, debentures,
unbundled stock units or components thereof, preferred stock, warrants and securities convertible into or exchangeable for Common
Stock or other property.


 


2.16          “Retirement”
means retirement as defined under any Company pension plan or retirement program or termination of one’s employment on retirement
with the approval of the Committee; provided that in any instance where a grant to a participant is treated as “deferred
compensation” within the meaning of Section 409A of the Code, “Retirement” shall be interpreted consistently
with the meaning of Section 409A(a)(2)(A)(i) of the Code and guidance issued thereunder.


 


2.17          “Subsidiary”
means a corporation or other entity of which outstanding shares or ownership interests representing 50% or more of the combined
voting power of such corporation or other entity entitled to elect the management thereof, or such lesser percentage as may be
approved by the Committee, are owned directly or indirectly by the Company.


 


3    Administration.


 


The Plan shall be
administered by the Committee; provided that the Board may, in its discretion, at any time and from time to time, resolve to administer
the Plan, in which case the term “Committee” shall be deemed to mean the Board for all purposes herein. Subject to
the provisions of the Plan, the Committee shall be authorized to (i) select persons to participate in the Plan, (ii) determine
the form and substance of Grants made under the Plan to each participant, and the conditions and restrictions, if any, subject
to which such Grants will be made, (iii) certify that the conditions and restrictions applicable to any Grant have been met, (iv) modify
the terms of Grants made under the Plan in accordance with the provisions of Sections 16 and 17 hereof, (v) interpret the Plan
and Grants made thereunder, (vi) make any adjustments necessary or desirable in connection with Grants made under the Plan to eligible
participants located outside the United States and (vii) adopt, amend, or rescind such rules and regulations, and make such
other determinations, for carrying out the Plan as it may deem appropriate. Decisions of the Committee on all matters relating
to the Plan shall be in the Committee’s sole discretion and shall be conclusive and binding on all parties. The validity,
construction, and effect of the Plan and any rules and regulations relating to the Plan shall be determined in accordance with
applicable federal and state laws and rules and regulations promulgated pursuant thereto. No member of the Committee and no officer
of the Company shall be liable for any action taken or omitted to be taken by such member, 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 such person’s own
willful misconduct or as expressly provided by statute.


 


The expenses of the
Plan shall be borne by the Company. The Company shall not be required to establish any special or separate fund or make any other
segregation of assets to assume the obligations pursuant to any Grant made under the Plan, and rights to any payment in connection
with such Grants shall be no greater than the rights of the Company’s general creditors.


 






    


     


    

 


4    Shares
Available for the Plan.


 


Subject to adjustments
as provided in Section 15, an aggregate of  1,500,000 shares of Common Stock, which represents the number of shares
equal to approximately 6.6% of the number of shares of Common Stock outstanding as of the Effective Date (the “Shares“), may be issued pursuant to the Plan. Such Shares may be in whole or in part authorized and unissued or held by the Company
as treasury shares. Notwithstanding anything contained in this Plan to the contrary, if any Grant under the Plan expires or terminates
unexercised, becomes unexercisable or is forfeited as to any Shares, or is tendered or withheld as to any Shares in payment of
the exercise price of the Grant or taxes payable with respect to the Grant or the vesting or exercise thereof, then such unpurchased,
forfeited, tendered or withheld Shares may not thereafter be available for further Grants under the Plan. The number of shares
that may be used for restricted stock or restricted unit grants under the Plan may not exceed fifty percent (50%) of the total
authorized number of Shares pursuant to the Plan. A restricted stock and stock option grant
to an eligible individual under the Plan for a year cannot exceed 100,000 shares.


 


Without limiting the
generality of the foregoing provisions of this Section 4 or the generality of the provisions of Sections 3, 6 or 17 or any other
section of this Plan, the Committee may, at any time or from time to time, and on such terms and conditions (that are consistent
with and not in contravention of the other provisions of this Plan) as the Committee may, in its sole discretion, determine, enter
into agreements (or take other actions with respect to the Grants) for new Grants containing terms (including exercise prices)
more (or less) favorable than the outstanding Grants.


 


5    Participation.


 


Participation in the
Plan shall be limited to those directors (including Non-Employee Directors), officers (including non-employee officers) and employees
of, and other individuals performing services for, or to whom an offer of employment has been extended by, the Company and its
Subsidiaries selected by the Committee (including participants located outside the United States). Nothing in the Plan or in any
Grant thereunder shall confer any right on a participant to continue in the employ as a director or officer of, or in any other
capacity or in the performance of services for, the Company or shall interfere in any way with the right of the Company to terminate
the employment or performance of services or to reduce the compensation or responsibilities of a participant at any time. By accepting
any Grant under the Plan, each participant and each person claiming under or through him or her shall be conclusively deemed to
have indicated his or her acceptance and ratification of, and consent to, any action taken under the Plan by the Company, the Board
or the Committee.


 


Incentive Stock Options
or Non-qualified Stock Options, SARs alone or in tandem with options, restricted stock awards, performance awards or any combination
thereof may be granted to such persons and for such number of Shares as the Committee shall determine (such individuals to whom
Grants are made being sometimes herein called “optionees” or “grantees,” as the case may be). 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 individuals are similarly situated. A Grant of any type made hereunder in any one year to an eligible participant
shall neither guarantee nor preclude a further Grant of that or any other type to such participant in that year or subsequent years.


 


6     Incentive
and Non-qualified Options and SARs.


 


The Committee may
from time to time grant to eligible participants Incentive Stock Options, Non-qualified Stock Options, or any combination thereof;
provided that the Committee may grant Incentive Stock Options only to eligible employees of the Company or its subsidiaries (as
defined for this purpose in Section 424(f) of the Code or any successor thereto). In any one calendar year, the Committee shall
not grant to any one participant options or SARs to purchase or receive the economic equivalent of a number of shares of Common
Stock in excess of 10% of the total number of Shares authorized under the Plan pursuant to Section 4; provided , however,
that the Committee shall be permitted to grant to Dr. Michael J. Hartnett up to 60% of the total number of Shares authorized under
the plan at any time. The options granted shall take such form as the Committee shall determine, subject to the following terms
and conditions.


 


It is the Company’s
intent that Non-qualified Stock Options granted under the Plan not be classified as Incentive Stock Options, that Incentive Stock
Options be consistent with and contain or be deemed to contain all provisions required under Section 422 of the Code or any successor
thereto, that neither any Non-qualified Stock Option nor any Incentive Stock Option be treated as a payment of deferred compensation
for the purposes of Section 409A of the Code and any successor thereto, and that any ambiguities in construction be interpreted
in order to effectuate such intent. If an Incentive Stock Option granted under the Plan does not qualify as such for any reason,
then to the extent of such non-qualification, the stock option represented thereby shall be regarded as a Non-qualified Stock Option
duly granted under the Plan, provided that such stock option otherwise meets the Plan’s requirements for Non-qualified Stock
Options.


 






    


     


    

 


6.1           Price.
The price per Share deliverable upon the exercise of each option (“exercise price”) shall not be less than 100% of
the Fair Market Value of a share of Common Stock as of the date of Grant of the option, and in the case of the Grant of any Incentive
Stock Option to an employee who, at the time of the Grant, owns more than 10% of the total combined voting power of all classes
of stock of the Company or any of its Subsidiaries, the exercise price may not be less than 110% of the Fair Market Value of a
share of Common Stock as of the date of Grant of the option, in each case unless otherwise permitted by Section 422 of the Code
or any successor thereto.


 


6.2            Payment.
Options may be exercised, in whole or in part, upon payment of the exercise price of the Shares to be acquired. Unless otherwise
determined by the Committee, payment shall be made (i) in cash (including check, bank draft, money order or wire transfer of immediately
available funds), (ii) by delivery of outstanding shares of Common Stock with a Fair Market Value on the date of exercise equal
to the aggregate exercise price payable with respect to the options’ exercise, (iii) by simultaneous sale through a broker reasonably
acceptable to the Committee of Shares acquired on exercise, as permitted under Regulation T of the Federal Reserve Board, (iv)
by authorizing the Company to withhold from issuance a number of Shares issuable upon exercise of the options which, when multiplied
by the Fair Market Value of a share of Common Stock on the date of exercise, is equal to the aggregate exercise price payable with
respect to the options so exercised or (v) by any combination of the foregoing.


 


In the event a grantee
elects to pay the exercise price payable with respect to an option pursuant to clause (ii) above, (A) only a whole number of share(s)
of Common Stock (and not fractional shares of Common Stock) may be tendered in payment, (B) such grantee must present evidence
acceptable to the Company that he or she has owned any such shares of Common Stock tendered in payment of the exercise price (and
that such tendered shares of Common Stock have not been subject to any substantial risk of forfeiture) for at least six months
prior to the date of exercise, and (C) Common Stock must be delivered to the Company. Delivery for this purpose may, at the election
of the grantee, be made either by (A) physical delivery of the certificate(s) for all such shares of Common Stock tendered in payment
of the price, accompanied by duly executed instruments of transfer in a form acceptable to the Company, or (B) direction to the
grantee’s broker to transfer, by book entry, of such shares of Common Stock from a brokerage account of the grantee to a
brokerage account specified by the Company. When payment of the exercise price is made by delivery of Common Stock, the difference,
if any, between the aggregate exercise price payable with respect to the option being exercised and the Fair Market Value of the
shares of Common Stock tendered in payment (plus any applicable taxes) shall be paid in cash. No grantee may tender shares of Common
Stock having a Fair Market Value exceeding the aggregate exercise price payable with respect to the option being exercised (plus
any applicable taxes).


 


In the event a grantee
elects to pay the exercise price payable with respect to an option pursuant to clause (iv) above, only a whole number of Shares
(and not fractional Shares) may be withheld in payment. When payment of the exercise price is made by withholding of Shares, the
difference, if any, between the aggregate exercise price payable with respect to the option being exercised and the Fair Market
Value of the Shares withheld in payment (plus any applicable taxes) shall be paid in cash. No grantee may authorize the withholding
of Shares having a Fair Market Value exceeding the aggregate exercise price payable with respect to the option being exercised
(plus any applicable taxes). Any withheld Shares shall no longer be issuable under such option.


 


6.3             Terms
of Options; Vesting. The term during which each option may be exercised shall be determined by the Committee, but if required
by the Code and except as otherwise provided herein, no option shall be exercisable in whole or in part more than seven years from
the date it is granted, and no Incentive Stock Option granted to an employee who at the time of the Grant owns more than 10% of
the total combined voting power of all classes of stock of the Company or any of its Subsidiaries shall be exercisable more than
five years from the date it is granted. All rights to purchase Shares pursuant to an option shall, unless sooner terminated, expire
at the date designated by the Committee. The Committee shall determine the date on which each option shall become exercisable and
may provide that an option shall become exercisable in installments. The Shares constituting each installment may be purchased
in whole or in part at any time after such installment becomes exercisable, subject to such minimum exercise requirements as may
be designated by the Committee. Prior to the exercise of an option and delivery of the Shares represented thereby, the optionee
shall have no rights as a stockholder with respect to any Shares covered by such outstanding option (including any dividend or
voting rights).


 






    


     


    

 


6.4            Limitations
on Grants. If required by the Code, the aggregate Fair Market Value (determined as of the Grant date) of Shares for which an
Incentive Stock Option is exercisable for the first time during any calendar year under all equity incentive plans of the Company
and its Subsidiaries (as defined in Section 422 of the Code or any successor thereto) may not exceed $100,000.


 


6.5            Termination;
Forfeiture.


 


6.5.1     Death
or Disability. Unless otherwise provided in any Award Agreement, if a participant ceases to be a director, officer or employee
of, or to perform other services for, the Company and any Subsidiary due to death or Disability, (A) all of the participant’s
options and SARs that were exercisable on the date of death or Disability shall remain exercisable for, and shall otherwise terminate
at the end of, a period of one year after the date of death or Disability, but in no event after the expiration date of the options
and SARs and (B) all of the participant’s options and SARs that were not exercisable on the date of death or Disability
shall be forfeited immediately upon such death or Disability; provided, however, that the Committee may determine to additionally
vest such options and SARs, in whole or in part, in its discretion. Notwithstanding the foregoing, if the Disability giving rise
to the termination of employment is not within the meaning of Section 22(e)(3) of the Code or any successor thereto, Incentive
Stock Options not exercised by such participant within one year after the date of termination of employment will cease to qualify
as Incentive Stock Options and will be treated as Non-qualified Stock Options under the Plan if required to be so treated under
the Code.


 


6.5.2     Retirement.
Unless otherwise provided in any Award Agreement, if a participant ceases to be a director, officer or employee of, or to perform
other services for, the Company and any Subsidiary upon the occurrence of his or her Retirement, (A) all of the participant’s
options and SARs that were exercisable on the date of Retirement shall remain exercisable for, and shall otherwise terminate at
the end of, a period of 90 days after the date of Retirement, but in no event after the expiration date of the options or SARs;
provided that the participant does not engage in Competition during such 90-day period unless he or she receives written consent
to do so from the Board or the Committee, and (B) all of the participant’s options and SARs that were not exercisable
on the date of Retirement shall be forfeited immediately upon such Retirement; provided, however, that such options and SARs, may
become fully vested and exercisable in the discretion of the Committee. Notwithstanding the foregoing, Incentive Stock Options
not exercised by such participant within 90 days after Retirement will cease to qualify as Incentive Stock Options and will be
treated as Non-qualified Stock Options under the Plan if required to be so treated under the Code.


 


6.5.3     Discharge
for Cause. Unless determined by the Committee, if a participant ceases to be a director, officer or employee of, or to perform
other services for, the Company or a Subsidiary due to Cause, or if a participant does not become a director, officer or employee
of, or does not begin performing other services for, the Company or a Subsidiary for any reason, all of the participant’s
options and SARs shall expire and be forfeited immediately upon such cessation or non-commencement, whether or not then exercisable.


 


6.5.4     Other
Termination. Unless determined by the Committee, if a participant ceases to be a director, officer or employee of, or to otherwise
perform services for, the Company or a Subsidiary for any reason other than death, Disability, Retirement or Cause, (A) all
of the participant’s options and SARs that were exercisable on the date of such cessation shall remain exercisable for, and
shall otherwise terminate at the end of, a period of 90 days after the date of such cessation, but in no event after the expiration
date of the options or SARs; provided that the participant does not engage in Competition during such 90-day period unless he or
she receives written consent to do so from the Board or the Committee, and (B) all of the participant’s options and
SARs that were not exercisable on the date of such cessation shall be forfeited immediately upon such cessation.


 


7    Stock
Appreciation Rights.


 


Provided that the
Company’s stock is traded on an established securities market, the Committee shall have the authority to grant SARs under
this Plan, subject to such terms and conditions specified in this paragraph 7 and any additional terms and conditions as the Committee
may specify.


 






    


     


    

 


No SAR may be issued
unless (a) the exercise price of the SAR may never be less than the Fair Market Value of the underlying Shares on the date of grant
and (b) the SAR does not include any feature for the deferral of compensation income other than the deferral of recognition of
income until the exercise of the SAR.


 


No SAR may be exercised
unless the Fair Market Value of a share of Common Stock of the Company on the date of exercise exceeds the exercise price of the
SAR. Prior to the exercise of the SAR and delivery of the Shares represented thereby, the participant shall have no rights as a
stockholder with respect to Shares covered by such outstanding SAR (including any dividend or voting rights).


 


Upon the exercise
of an SAR, the participant shall be entitled to a distribution in an amount equal to the difference between the Fair Market Value
of a share of Common Stock on the date of exercise and the exercise price of the SAR, multiplied by the number of Shares as to
which the SAR is exercised. Such distribution shall be made in Shares having a Fair Market Value equal to such amount.


 


All SARs will be exercised
automatically on the last day prior to the expiration date of the SAR so long as the Fair Market Value of a share of Common Stock
on that date exceeds the exercise price of the SAR or any related option, as applicable.


 


The provisions of
Subsections 6(c) shall apply to all SARs except to the extent that the Award Agreement pursuant to which such Grant is made expressly
provides otherwise.


 


It is the Company’s
intent that no SAR shall be treated as a payment of deferred compensation for purposes of Section 409A of the Code and that any
ambiguities in construction be interpreted in order to effectuate such intent.


 


8    Restricted
Stock.


 


The Committee may
at any time and from time to time grant Shares of restricted stock under the Plan to such participants and in such amounts as it
determines. Each Grant of restricted stock shall specify the applicable restrictions on such Shares, the duration of such restrictions,
and the time or times at which such restrictions shall lapse with respect to all or a specified number of Shares that are part
of the Grant.


 


The participant will
be required to pay the Company the aggregate par value of any Shares of restricted stock (or such larger amount as the Board may
determine to constitute capital under Section 154 of the Delaware General Corporation Law, as amended, or any successor thereto)
within 15 days of the date of Grant, unless such Shares of restricted stock are treasury shares. Unless otherwise determined by
the Committee, certificates representing Shares of restricted stock granted under the Plan will be held in escrow by the Company
on the participant’s behalf during any period of restriction thereon and will bear an appropriate legend specifying the applicable
restrictions thereon, and the participant will be required to execute a blank stock power therefor. Except as otherwise provided
by the Committee, during such period of restriction the participant shall have all of the rights of a holder of Common Stock, including
but not limited to the rights to receive dividends and to vote, and any stock or other securities received as a distribution with
respect to such participant’s restricted stock shall be subject to the same restrictions as then in effect for the restricted
stock.


 


Unless otherwise provided
in any Award Agreement, at such time as a participant ceases to be a director, officer or employee of, or to otherwise perform
services for, the Company and its Subsidiaries due to death, Disability or Retirement during any period of restriction, all Shares
of restricted stock granted to such participant on which the restrictions have not lapsed shall be immediately forfeited to the
Company. At such time as a participant ceases to be, or in the event a participant does not become, a director, officer or employee
of, or otherwise perform services for, the Company or its Subsidiaries for any other reason, all Shares of restricted stock granted
to such participant on which the restrictions have not lapsed shall be immediately forfeited to the Company. The provisions of
Subsections 6(c) and (e) shall apply to Restricted Stock except to the extent that the Award Agreement in relation thereto expressly
provides otherwise.


 






    


     


    

 


It is the Company’s
intent that Restricted Stock shall not be treated as a payment of deferred compensation for purposes of Section 409A of the Code
and that any ambiguities in construction be interpreted in order to effectuate such intent.


 


9    Performance
Awards.


 


Performance awards
may be granted to participants at any time and from time to time as determined by the Committee. The Committee shall have complete
discretion in determining the size and composition of performance awards granted to a participant. The period over which performance
is to be measured (a “performance cycle”) shall commence on the date specified by the Committee and shall end on the
last day of a fiscal year specified by the Committee. A performance award shall be paid no later than the fifteenth day of the
third month following the completion of a performance cycle (or following the elapsed portion of the performance cycle, in the
circumstances described in the last paragraph of this Section 9). Performance awards may include (i) specific dollar-value
target awards (ii) performance units, the value of each such unit being determined by the Committee at the time of issuance,
and/or (iii) performance Shares, the value of each such Share being equal to the Fair Market Value of a share of Common Stock.
In any one calendar year, the Committee shall not grant to any one participant performance awards in excess of 10% of the total
number of Shares authorized under the Plan pursuant to Section 4; provided , however, that the Committee shall be permitted
to grant to Dr. Michael J. Hartnett up to 60% of the total number of Shares authorized under the plan at any time.


 


The value of each
performance award may be fixed or it may be permitted to fluctuate based on a performance factor (e.g., return on equity) selected
by the Committee. It is the Company’s intent that no performance award be treated as the payment of deferred compensation
for purposes of Section 409A of the Code and that any ambiguities in construction be interpreted in order to effectuate such intent.


 


The Committee shall
establish performance goals and objectives for each performance cycle on the basis of such criteria and objectives as the Committee
may select from time to time, including, without limitation, the performance of the participant, the Company, one or more of its
Subsidiaries or divisions or any combination of the foregoing. During any performance cycle, the Committee shall have the authority
to adjust the performance goals and objectives for such cycle for such reasons as it deems equitable.


 


The Committee shall
determine the portion of each performance award that is earned by a participant on the basis of the Company’s performance
over the performance cycle in relation to the performance goals for such cycle. The earned portion of a performance award may be
paid out in Shares, cash, Other Securities, or any combination thereof, as the Committee may determine.


 


A participant must
be a director, officer or employee of, or otherwise perform services for, the Company or its Subsidiaries at the end of the performance
cycle in order to be entitled to payment of a performance award issued in respect of such cycle; provided, however, that except
as otherwise determined by the Committee, if a participant ceases to be a director, officer or employee of, or to otherwise perform
services for, the Company and its Subsidiaries upon his or her death, Retirement, or Disability prior to the end of the performance
cycle, the Committee may provide in a Grant that the participant may earn a proportionate portion of the performance award based
upon the elapsed portion of the performance cycle and the Company’s performance over that portion of such cycle.


 


10    Withholding
Taxes.


 


10.1          Participant
Election. Unless otherwise determined by the Committee, a participant may elect to deliver shares of Common Stock (or have
the Company withhold shares acquired upon exercise of an option or SAR or deliverable upon grant or vesting of restricted stock,
as the case may be) to satisfy, in whole or in part, the amount the Company is required to withhold for taxes in connection with
the exercise of an option or SAR or the delivery of restricted stock upon grant or vesting, as the case may be. Such election must
be made on or before the date the amount of tax to be withheld is determined. Once made, the election shall be irrevocable. The
fair market value of the shares to be withheld or delivered will be the Fair Market Value as of the date the amount of tax to be
withheld is determined. In the event a participant elects to deliver or have the Company withhold shares of Common Stock pursuant
to this Section 10(a), such delivery or withholding must be made subject to the conditions and pursuant to the procedures set forth
in Section 6(b) with respect to the delivery or withholding of Common Stock in payment of the exercise price of options.


 






    


     


    

 


10.2          Company
Requirement. The Company may require, as a condition to any Grant or exercise under the Plan or to the delivery of certificates
for Shares issued hereunder, that the grantee make provision for the payment to the Company, either pursuant to Section 10(a) or
this Section 10(b), of federal, state or local taxes of any kind required by law to be withheld with respect to any Grant or delivery
of Shares. The Company, to the extent permitted or required by law, shall have the right to deduct from any payment of any kind
(including salary or bonus) otherwise due to a grantee, an amount equal to any federal, state or local taxes of any kind required
by law to be withheld with respect to any grant or delivery of Shares under the Plan.


 


11  Written
Agreement.


 


Each employee to whom a Grant is made under
the Plan shall enter into an Award Agreement with the Company that shall contain such provisions consistent with the provisions
of the Plan, as may be approved by the Committee. If there is a Change in Control of the Company the Committee may, in its discretion,
provide a provision in participant’s Award Agreement for the vesting of a participant’s Grant under the Plan if the
participant ceases to be a director, officer employee or individual performing services for the Company because his or her relationship
with the Company is terminated without Cause following a Change in Control, with such vesting to occur on the date of termination.


 


12  Transferability.


 


Unless the Committee
determines otherwise, no option, SAR, performance award or restricted stock granted under the Plan shall be transferable by a participant
other than by will or the laws of descent and distribution; provided that, in the case of Shares of restricted stock granted under
the Plan, such Shares of restricted stock shall be freely transferable following the time at which such restrictions shall have
lapsed with respect to such Shares. Unless the Committee determines otherwise, an option, SAR or performance award may be exercised
only by the optionee or grantee thereof; by his or her executor or administrator, the executor or administrator of the estate of
any of the foregoing, or any person to whom the option, SAR or performance award is transferred by will or the laws of descent
and distribution; or by his or her guardian or legal representative; or the guardian or legal representative of any of the foregoing;
provided that Incentive Stock Options may be exercised by any guardian or legal representative only if permitted by the Code and
any regulations thereunder. All provisions of this Plan and any Award Agreement referred to in Section 11 shall in any event continue
to apply to any option, SAR, performance award or restricted stock granted under the Plan and transferred as permitted by this
Section 12, and any transferee of any such option, SAR, performance award or restricted stock shall be bound by all provisions
of this Plan and any agreement referred to in Section 11 as and to the same extent as the applicable original grantee.


 


13  Listing,
Registration and Qualification.


 


If the Committee determines
that the listing, registration or qualification upon any securities exchange or under any law of Shares subject to any option,
SAR, performance award or restricted stock Grant is necessary or desirable as a condition of, or in connection with, the granting
of same or the issue or purchase of Shares thereunder, no such option or SAR may be exercised in whole or in part, no such performance
award may be paid out, and no Shares may be issued, unless such listing, registration or qualification is effected free of any
conditions not acceptable to the Committee.


 


14  Transfer
of Employee.


 


The transfer of an
employee from the Company to a Subsidiary, from a Subsidiary to the Company, or from one Subsidiary to another shall not be considered
a termination of employment; nor shall it be considered a termination of employment if an employee is placed on military or sick
leave or such other leave of absence which is considered by the Committee as continuing intact the employment relationship.


 






    


     


    

 


15  Adjustments.


 


In the event of a
reorganization, recapitalization, spin-off or other extraordinary distribution, stock split, stock dividend, combination of shares,
merger, consolidation, distribution of assets, spin-off or other extraordinary distribution, or any other change in the corporate
structure or shares of the Company, the Committee shall make such adjustment as it deems appropriate in the number and kind of
Shares or other property available for issuance under the Plan (including, without limitation, the total number of Shares available
for issuance under the Plan pursuant to Section 4), in the number and kind of options, SARs, Shares or other property covered by
Grants previously made under the Plan, and in the exercise price of outstanding options and SARs. Any such adjustment shall be
final, conclusive and binding for all purposes of the Plan. In the event of any merger, consolidation or other reorganization in
which the Company is not the surviving or continuing corporation or in which a Change in Control is to occur, all of the Company’s
obligations regarding options, SARs, performance awards, and restricted stock that were granted hereunder and that are outstanding
on the date of such event shall, on such terms as may be approved by the Committee prior to such event, be (a) assumed by the surviving
or continuing corporation; or (b) canceled in exchange for cash, securities of the acquiror or other property; provided that, in
the case of clause (b), (i) such merger, consolidation, other reorganization or Change in Control constitutes a “change in
ownership or control” of the Company or a “change in the ownership of a substantial portion” of the Company’s
assets within the meaning of Section 409A(a)(2)(A)(v) of the Code and the guidance issued thereunder or (ii) the payment of cash,
securities or other property is not treated as a payment of “deferred compensation” under Section 409A of the Code.


 


Without limitation
of the foregoing, in connection with any transaction described in the last sentence of the preceding paragraph, the Committee may,
in its discretion, (i) cancel any or all outstanding options under the Plan in consideration for payment to the holders thereof
of an amount equal to the portion of the consideration that would have been payable to such holders pursuant to such transaction
if their options had been fully exercised immediately prior to such transaction, less the aggregate exercise price that would have
been payable therefor, or (ii) if the amount that would have been payable to the option holders pursuant to such transaction if
their options had been fully exercised immediately prior thereto would be equal to or less than the aggregate exercise price that
would have been payable therefor, cancel any or all such options for no consideration or payment of any kind. Payment of any amount
payable pursuant to the preceding sentence may be made in cash or, in the event that the consideration to be received in such transaction
includes securities or other property, in cash, securities of the acquiror or other property in the Committee’s discretion.


 


16  Amendment
and Termination of the Plan.


 


Except as otherwise
provided in an Award Agreement, the Board of Directors, without approval of the stockholders, may amend or terminate the Plan,
except that no amendment shall become effective without prior approval of the stockholders of the Company if stockholder approval
would be required by applicable law or regulations, including if required for continued compliance with the performance-based compensation
exception of Section 162(m) of the Code or any successor thereto, under the provisions of Section 409A of the Code or any
successor thereto, under the provisions of Section 422 of the Code or any successor thereto, or by any listing requirement of the
principal stock exchange on which the Common Stock is then listed.


 


17  Amendment
or Substitution of Grants under the Plan.


 


The terms of any outstanding Grant under the Plan may be amended
from time to time by the Committee in its discretion in any manner that it deems appropriate including, but not limited to, acceleration
of the date of exercise of any Grant and/or payments thereunder or of the date of lapse of restrictions on Shares (but, in the
case of a Grant that is or would be treated as “deferred compensation” for purposes of Section 409A of the Code, only
to the extent permitted by guidance issued under Section 409A of the Code); provided that, except as otherwise provided in Section
16 or in an Award Agreement, no such amendment shall adversely affect in a material manner any right of a participant under the
Grant without his or her written consent, and further provided that the Committee shall not reduce the exercise price of any options
or SARs awarded under the Plan. The Committee may, in its discretion, permit holders of Grants under the Plan to surrender outstanding
Grants in order to exercise or realize rights under other Grants, or in exchange for new Grants, or require holders of Grants to
surrender outstanding Grants as a condition precedent to the receipt of new Grants under the Plan, but only if such surrender,
exercise, realization, exchange or Grant (a) is not treated as a payment of, and does not cause a Grant to be treated as, deferred
compensation for the purposes of Section 409A of the Code or (b) is permitted under guidance issued pursuant to Section 409A of
the Code. Notwithstanding anything contained in this Section 17 to the contrary, no surrender, exercise, realization, exchange
or Grant in substitution for, assumption of, or as an alternative to or replacement of, an existing Grant pursuant to this Section
17 shall be effected or implemented by the Company, including but not limited to a cash buy back of an out of the money stock option,
in order to reduce or change the exercise price of any outstanding options or SARs awarded under the Plan or otherwise implement
a re-pricing of any outstanding options or SARs awarded under the Plan including by means of buy back, cancellation and re-grant.


 






    


     


    

 


18  Commencement
Date; Termination Date.


 


The date of commencement
of the Plan shall be September 13, 2017, subject to approval by the shareholders of the Company.


 


Unless previously
terminated upon the adoption of a resolution of the Board terminating the Plan, the Plan shall terminate at the close of business
on September 13, 2027. Subject to the provisions of an Award Agreement, which may be more restrictive, no termination of the Plan
shall materially and adversely affect any of the rights or obligations of any person, without his or her written consent, under
any Grant of options or other incentives theretofore granted under the Plan.


 


19  Severability.


 


Whenever possible,
each provision of the Plan shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision
of the Plan is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent
of such prohibition or invalidity, without invalidating the remainder of the Plan.


 


20  Governing
Law.


 


The Plan shall be
governed by the corporate laws of the State of Delaware, without giving effect to any choice of law provisions that might otherwise
refer construction or interpretation of the Plan to the substantive law of another jurisdiction.


 


21  Compliance
Amendments.


 


Except as otherwise
provided in an Award Agreement, notwithstanding any of the foregoing provisions of the Plan, and in addition to the powers of amendment
set forth in Sections 16 and 17 hereof, the provisions hereof and the provisions of any award made hereunder may be amended unilaterally
by the Company from time to time to the extent necessary (and only to the extent necessary) to prevent the implementation, application
or existence (as the case may be) of any such provision from (i) requiring the inclusion of any compensation deferred pursuant
to the provisions of the Plan (or an award thereunder) in a participant’s gross income pursuant to Section 409A of the Code, and
the regulations issued thereunder from time to time and/or (ii) inadvertently causing any award hereunder to be treated as providing
for the deferral of compensation pursuant to such Code section and regulations.