Exhibit 10.1


 





BIOCRYST PHARMACEUTICALS, INC.


STOCK INCENTIVE PLAN


(AS AMENDED AND RESTATED AS OF MARCH
19, 2020)


 


Article
One

GENERAL PROVISIONS


 


I.                  
PURPOSES OF THE PLAN


 


A.               
This Stock Incentive Plan (the “Plan”), formerly the “BioCryst Pharmaceuticals, Inc. 1991 Stock Option Plan,”
is intended to promote the interests of BioCryst Pharmaceuticals, Inc., a Delaware corporation (the “Company”), by
providing a method whereby (i) employees (including officers and directors) of the Company (or its parent or subsidiary corporations),
(ii) non-employee members of the board of directors of the Company (the “Board”) (or of any parent or subsidiary corporations)
and (iii) consultants and other independent contractors who provide valuable services to the Company (or any parent or subsidiary
corporations) may be offered the opportunity to acquire a proprietary interest, or otherwise increase their proprietary interest,
in the Company as an incentive for them to remain in the service of the Company (or any parent or subsidiary corporations).


 


B.                
For purposes of the Plan, the following provisions shall be applicable in determining the parent and subsidiary corporations of
the Company:


 


(i)       Any
corporation (other than the Company) in an unbroken chain of corporations ending with the Company shall be considered to be a parent
corporation of the Company, provided each such corporation in the unbroken chain (other than the Company) owns, at the time
of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in
one of the other corporations in such chain.


 


(ii)       Each
corporation (other than the Company) in an unbroken chain of corporations beginning with the Company shall be considered to be
a subsidiary of the Company, provided each such corporation (other than the last corporation) in the unbroken chain owns,
at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes
of stock in one of the other corporations in such chain.


 


C.                
The Plan, as amended and restated, was approved and adopted by the Board effective on March 19, 2020 in order to increase
by 8,000,000 the number of shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”),
subject to approval by the Company’s stockholders at the Company’s Annual Meeting of Stockholders on May 12, 2020.


 


II.               
STRUCTURE OF THE PLAN


 


A.               
The Plan shall be divided into three separate equity programs:


 


(i)       the
Discretionary Option Grant Program specified in Article Two, pursuant to which eligible persons may, at the discretion of the Plan
Administrator, be granted options to purchase shares of Common Stock,


 


(ii)       the
Stock Issuance Program specified in Article Three, pursuant to which eligible persons may, at the discretion of the Plan Administrator,
be issued shares of Common Stock directly or through the issuance of restricted stock units (“RSUs”) that provide for
the issuance of shares of Common Stock if the applicable vesting criteria are satisfied, and


 


(iii)       
the Automatic Option Grant Program specified in Article Four, pursuant to which non-employee members of the Board will automatically
receive option grants to purchase shares of Common Stock.


 


B.                
Unless the context clearly indicates otherwise, the provisions of Articles One and Five of the Plan shall apply to all equity programs
under the Plan and shall accordingly govern the interests of all individuals under the Plan.


 


III.            
ADMINISTRATION OF THE PLAN


 


A.              
The Plan shall be administered by the Committee who shall be the Compensation Committee of the Board or, in the absence of a Compensation
Committee, a properly constituted committee or the Board itself (the administrator is referred to herein as the “Committee”
or the “Plan Administrator”). Any power of the Committee may also be exercised by the Board, except to the extent that
the grant or exercise of such authority would cause any Award or transaction to become subject to (or lose an exemption under)
the short-swing profit recovery provisions of Section 16 of the Securities Exchange Act of 1934 or cause an Award designated as
a Performance Award not to qualify for treatment as performance-based compensation under Section 162(m) of the Code. To the extent
that any permitted action taken by the Board conflicts with action taken by the Committee, the Board action shall control. The
Compensation Committee may by resolution authorize one or more officers of the Company to perform any or all things that the Committee
is authorized and empowered to do or perform under the Plan, and for all purposes under this Plan, such officer or officers shall
be treated as the Committee; provided, however, that the resolution so authorizing such officer or officers shall specify the total
number of Awards (if any) such officer or officers may award pursuant to such delegated authority, and any such Award shall be
subject to the form of award agreement theretofore approved by the Compensation Committee. No such officer shall designate himself
or herself as a recipient of any Awards granted under authority delegated to such officer. In addition, the Compensation Committee
may delegate any or all aspects of the day-to-day administration of the Plan to one or more officers or employees of the Company
or any subsidiary or affiliate, and/or to one or more agents.


 



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B.                
Subject to the express provisions of this Plan, the Committee shall be authorized and empowered to do all things that it determines
to be necessary or appropriate in connection with the administration of this Plan, including, without limitation: (i) to prescribe,
amend and rescind rules and regulations relating to this Plan and to define terms not otherwise defined herein; (ii) to determine
which persons are grantees, to which of such grantees, if any, awards shall be granted hereunder and the timing of any such awards;
(iii) to grant awards to grantees and determine the terms and conditions thereof, including the number of shares of Common Stock
subject to awards and the exercise or purchase price of such shares and the circumstances under which awards become exercisable
or vested or are forfeited or expire, which terms may but need not be conditioned upon the passage of time, continued employment,
the satisfaction of performance criteria, the occurrence of certain events (including events which constitute a Change in Control
to the extent permitted hereunder), or other factors; (iv) to establish and verify the extent of satisfaction of any performance
goals or other conditions applicable to the grant, issuance, exercisability, vesting and/or ability to retain any award; (v) to
prescribe and amend the terms of the agreements or other documents evidencing awards made under this Plan (which need not be identical)
and the terms of or form of any document or notice required to be delivered to the Company by grantees under this Plan; (vi) to
determine the extent to which adjustments are required pursuant to Article One; (vii) to interpret and construe this Plan, any
rules and regulations under this Plan and the terms and conditions of any award granted hereunder, and to make exceptions to any
such provisions for the benefit of the Company; (viii) to approve corrections in the documentation or administration of any award;
and (ix) to make all other determinations deemed necessary or advisable for the administration of this Plan.


 


C.     All
decisions, determinations and interpretations by the Committee regarding the Plan, any rules and regulations under the Plan and
the terms and conditions of or operation of any Award granted hereunder, shall be final and binding on all grantees, beneficiaries,
heirs, assigns or other persons holding or claiming rights under the Plan or any Award. The Committee shall consider such factors
as it deems relevant, in its sole and absolute discretion, to making such decisions, determinations and interpretations including,
without limitation, the recommendations or advice of any officer or other employee of the Company and such attorneys, consultants
and accountants as it may select.


 


D.   The
Compensation Committee may delegate all or a portion of their duties hereunder to one or more individuals or committees. Any reference
to the Compensation Committee or the Plan Administrator shall refer to such individual(s) or committee(s) to the extent of such
delegation.


 


 


E.       Administration
of the Automatic Option Grant Program shall be self-executing in accordance with the express terms and conditions of Article Four,
and no Plan Administrator shall exercise any discretionary functions under that program.


 


IV.             
ELIGIBILITY


 


A.               
The persons eligible to participate in the Discretionary Option Grant and Stock Issuance Programs shall be limited to the following:


 


(i)       officers
and other employees of the Company (or its parent or subsidiary corporations);


  


(ii)       individuals
who are consultants or independent advisors and who provide valuable services to the Company (or its parent or subsidiary corporations);
and


 


(iii)       non-employee
members of the Board (or of the board of directors of parent or subsidiary corporations).


 


B.                
Only Board members who are not employees of the Company (or any parent or subsidiary) shall be eligible to receive automatic option
grants pursuant to the Automatic Option Grant Program specified in Article Four.


 


C.                
The Plan Administrator shall, within the scope of its administrative jurisdiction under the Plan, have full power and authority
to determine (i) whether to grant options in accordance with the Discretionary Option Grant Program or to effect stock issuances
in accordance with the Stock Issuance Program, (ii) which eligible persons are to receive option grants under the Discretionary
Option Grant Program, the time or times when such option grants are to be made, the number of shares to be covered by each such
grant, the status of the granted option as either an incentive stock option (“Incentive Option”) which satisfies the
requirements of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”) or a non-statutory option
not intended to meet such requirements, the time or times when each such option is to become exercisable, the vesting schedule
(if any) applicable to the option shares and the maximum term for which such option is to remain outstanding, and (iii) which eligible
persons are to receive stock issuances under the Stock Issuance Program, the time or times when such issuances are to be made,
the number of shares to be issued to each grantee, the vesting schedule (if any) applicable to the shares and the consideration
for such shares.


 



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V.                
STOCK SUBJECT TO THE PLAN


 


A.               
Shares of the Company’s Common Stock shall be available for issuance under the Plan and shall be drawn from either the Company’s
authorized but unissued shares of Common Stock or from reacquired shares of Common Stock, including shares repurchased by the Company
on the open market. The maximum number of shares of Common Stock which may be issued over the term of the Plan, as amended and
restated, shall not exceed 40,590,000 shares, subject to adjustment from time to time in accordance with the provisions of this
Section V. The total number of shares available under the Plan, as amended and restated, as of March 20, 2020 is 30,018,802. This
amount consists of 19,425,083 shares reserved for awards already issued, 2,593,719 shares of Common Stock available for future
issuance under the Plan, and the increase of 8,000,000 shares of Common Stock authorized by the Board (subject to approval by the
Company’s stockholders at the Annual Meeting of Stockholders on May 12, 2020).


 


B.                
In no event shall the number of shares of Common Stock for which any one individual participating in the Plan may receive options,
separately exercisable stock appreciation rights and direct stock issuances and RSUs exceed 1,500,000 shares of Common Stock in
the aggregate in any calendar year. For purposes of such limitation, however, no stock options granted prior to the date the Common
Stock was first registered under Section 12 of the 1934 Act (the “Section 12(g) Registration Date”) shall be taken
into account.


 


C.                
Should an outstanding option under this Plan expire or terminate for any reason prior to exercise in full, the shares subject to
the portion of the option not so exercised shall be available for subsequent option grant or direct stock issuances or RSUs under
the Plan. Unvested shares issued under the Plan and subsequently repurchased by the Company, at the original issue price paid per
share, pursuant to the Company’s repurchase rights under the Plan, or shares underlying terminated RSUs, shall be added back
to the number of shares of Common Stock reserved for issuance under the Plan and shall accordingly be available for reissuance
through one or more subsequent option grants or direct stock issuances or RSUs under the Plan. However, shares subject to an award
under the Plan may not again be made available for issuance under the Plan if such shares are: (i) shares that were subject to
a stock-settled stock appreciation right and were not issued upon the net settlement or net exercise of such stock appreciation
right, (ii) shares used to pay the exercise price of an option, (iii) shares delivered to or withheld by the Company to pay the
withholding taxes related an award, or (iv) shares repurchased on the open market with the proceeds of an option exercise. Shares
of Common Stock subject to any option surrendered for an appreciation distribution under Section IV of Article Two or Section IV
of Article Four shall not be available for subsequent issuance under the Plan.


 


D.               
In the event any change is made to the Common Stock issuable under the Plan by reason of any stock split, stock dividend, recapitalization,
combination of shares, exchange of shares or other change affecting the outstanding Common Stock as a class without receipt of
consideration, then appropriate adjustments shall be made to (i) the maximum number and/or class of securities issuable under the
Plan, (ii) the maximum number and/or class of securities for which any one individual participating in the Plan may be granted
stock options, separately exercisable stock appreciation rights, and direct stock issuances and RSUs under the Plan from and after
the Section 12(g) Registration Date, (iii) the number and/or class of securities and price per share in effect under each outstanding
option and stock appreciation right under the Plan, (iv) the number and/or class of securities in effect under each outstanding
direct stock issuance and RSU under the Plan, and (v) the number and/or class of securities for which automatic option grants are
subsequently to be made per non-employee Board member under the Automatic Option Grant Program. The purpose of such adjustments
shall be to preclude the enlargement or dilution of rights and benefits under the Plan.


 


E.                
The fair market value per share of Common Stock on any relevant date under the Plan shall be determined in accordance with the
following provisions:


 


(i)       If
the Common Stock is not at the time listed or admitted to trading on any national securities exchange but is traded in the over-the-counter
market, the fair market value shall be the mean between the highest bid and lowest asked prices (or, if such information is available,
the closing selling price) per share of Common Stock on the date in question in the over-the-counter market, as such prices are
reported by the National Association of Securities Dealers through the Nasdaq National Market, the Nasdaq Global Select Market
or any successor system. If there are no reported bid and asked prices (or closing selling price) for the Common Stock on the date
in question, then the mean between the highest bid price and lowest asked price (or the closing selling price) on the last preceding
date for which such quotations exist shall be determinative of fair market value.


 



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(ii)       If
the Common Stock is at the time listed or admitted to trading on any national securities exchange, then the fair market value shall
be the closing selling price per share of Common Stock on the date in question on the securities exchange determined by the Plan
Administrator to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of transactions
on such exchange. If there is no reported sale of Common Stock on the exchange on the date in question, then the fair market value
shall be the closing selling price on the exchange on the last preceding date for which such quotation exists.


 


(iii)       If
the Common Stock is at the time neither listed nor admitted to trading on any securities exchange nor traded in the over-the-counter
market, then the fair market value shall be determined by the Plan Administrator after taking into account such factors as the
Plan Administrator shall deem appropriate.


 


VI.                MINIMUM
VESTING


 


Notwithstanding any other
provision of this Plan to the contrary, in no event shall any award granted pursuant to this Plan vest prior to the twelve (12)-month
anniversary of the date of grant, other than in connection with the grantee’s death or permanent disability or, to the extent
permitted hereunder, in connection with a Change in Control (provided that this limitation shall not apply with respect to up to
five percent (5%) of the shares of Common Stock available for issuance under this Plan following approval of the Plan at the Company’s
Annual Meeting of Stockholders on May 12, 2020). The minimum vesting period set forth in this Section VI may not be waived or superseded
by any provision in an award or other agreement.


 


VII.               MINIMUM
HOLDING PERIOD


 


All shares of Common
Stock issued under this Plan shall be subject to a minimum holding period of twelve (12) months (or, if later, when the requirements
under the Company’s share ownership guidelines are satisfied), provided that nothing in this Section shall prohibit the disposition
of Common Stock in connection with a Change in Control.


 


Article
Two

DISCRETIONARY OPTION GRANT PROGRAM


 


I.                  
TERMS AND CONDITIONS OF OPTIONS


 


Options granted pursuant
to this Article Two shall be authorized by action of the Plan Administrator and may, at the Plan Administrator’s discretion,
be either Incentive Options or non-statutory options. Individuals who are not Employees may only be granted non-statutory options
under this Article Two. Each option granted shall be evidenced by one or more instruments in the form approved by the Plan Administrator.
Each such instrument shall, however, comply with the terms and conditions specified below, and each instrument evidencing an Incentive
Option shall, in addition, be subject to the applicable provisions of Section II of this Article Two.


 


A.               
Option Price.


 


1.                 
The option price per share shall be fixed by the Plan Administrator. In no event, however, shall the option price per share be
less than one hundred percent (100%) of the fair market value per share of Common Stock on the date of the option grant.


 


2.                 
The option price shall become immediately due upon exercise of the option and shall, subject to the provisions of Section IV of
this Article Two and the instrument evidencing the grant, be payable through one of the following methods (or a combination thereof):


 


(i)       full
payment in cash or check drawn to the Company’s order;


 


(ii)       full
payment in shares of Common Stock held by the optionee for the requisite period necessary to avoid a charge to the Company’s
earnings for financial reporting purposes and valued at fair market value on the Exercise Date (as such term is defined below);


 


(iii)       full
payment through a combination of shares of Common Stock held by the optionee for the requisite period necessary to avoid a charge
to the Company’s earnings for financial reporting purposes and valued at fair market value on the Exercise Date and cash
or cash equivalent;


 


(iv)       full
payment through a broker-dealer sale and remittance procedure pursuant to which the optionee (I) shall provide irrevocable written
instructions to a designated brokerage firm to effect the immediate sale of the purchased shares and remit to the Company, out
of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate option price payable for the purchased
shares plus all applicable Federal and State income and employment taxes required to be withheld by the Company in connection with
such purchase and (II) shall provide written directives to the Company to deliver the certificates for the purchased shares directly
to such brokerage firm in order to complete the sale transaction; or


 



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(v)       such
other method as permitted by the Plan Administrator.


 


For purposes of this
subparagraph 2, the Exercise Date shall be the date on which written notice of the option exercise is delivered to the Company.
Except to the extent the sale and remittance procedure is utilized in connection with the exercise of the option, payment of the
option price for the purchased shares must accompany such notice.


 


B.                
Term and Exercise of Options.


 


Each option granted
under this Article Two shall be exercisable at such time or times, during such period, and for such number of shares as shall be
determined by the Plan Administrator and set forth in the instrument evidencing the option grant. No such option, however, shall
have a maximum term in excess of ten (10) years from the grant date. During the lifetime of the optionee, the option, together
with any stock appreciation rights pertaining to such option, shall be exercisable only by the optionee and shall not be assignable
or transferable by the optionee except for a transfer of the option by will or by the laws of descent and distribution following
the optionee’s death and, for the avoidance of doubt, may not be transferred to a third party for cash or other value. However,
the Plan Administrator shall have the discretion to provide that a non-statutory option may, in connection with the optionee’s
estate plan, be assigned in whole or in part during the optionee’s lifetime either as (i) as a gift to one or more members
of optionee’s immediate family, to a trust in which optionee and/or one or more such family members hold more than fifty
percent (50%) of the beneficial interest or an entity in which more than fifty percent (50%) of the voting interests are owned
by optionee and/or one or more such family members, or (ii) pursuant to a domestic relations order. The assigned portion shall
be exercisable only by the person or persons who acquire a proprietary interest in the option pursuant to such assignment. The
terms applicable to the assigned portion shall be the same as those in effect for this option immediately prior to such assignment
and shall be set forth in such documents issued to the assignee as the Plan Administrator may deem appropriate.


 


C.                
Termination of Service.


 


1.                 
Except to the extent otherwise provided pursuant to Section V of this Article Two or pursuant to an applicable award agreement,
the following provisions shall govern the exercise period applicable to any options held by the optionee at the time of cessation
of Service or death.


 


(i)       Should
the optionee cease to remain in Service for any reason other than death or permanent disability, then the period for which each
outstanding option held by such optionee is to remain exercisable shall be limited to the three (3)-month period following the
date of such cessation of Service. However, should optionee die during the three (3)-month period following his or her cessation
of Service, the personal representative of the optionee’s estate or the person or persons to whom the option is transferred
pursuant to the optionee’s will or in accordance with the laws of descent and distribution shall have a twelve (12)-month
period following the date of the optionee’s death during which to exercise such option.


 


(ii)       In
the event such Service terminates by reason of permanent disability (as defined in Section 22(e)(3) of the Internal Revenue Code),
then the period for which each outstanding option held by the optionee is to remain exercisable shall be limited to the twelve
(12)-month period following the date of such cessation of Service.


 


(iii)       Should
the optionee, after completing five (5) full years of Service, die while in Service, then the exercisability of each of his or
her outstanding options shall automatically accelerate so that each such option shall become fully exercisable with respect to
the total number of shares of Common Stock at the time subject to such option and may be exercised for all or any portion of such
shares. The personal representative of the optionee’s estate or the person or persons to whom the option is transferred pursuant
to the optionee’s will or in accordance with the laws of descent and distribution shall have a twelve (12)-month period following
the date of the optionee’s death during which to exercise such option.


 


(iv)       In
the event such Service terminates by reason of death prior to the optionee obtaining five (5) full years of Service, then the period
for which each outstanding vested option held by the optionee at the time of death shall be exercisable by the optionee’s
estate or the person or persons to whom the option is transferred pursuant to the optionee’s will shall be limited to the
twelve (12)-month period following the date of the optionee’s death.


 


(v)       Under
no circumstances, however, shall any such option be exercisable after the specified expiration date of the option term.


 


(vi)       Each
such option shall, during such limited exercise period, be exercisable for any or all of the shares for which the option is exercisable
on the date of the optionee’s cessation of Service. Upon the expiration of such limited exercise period or (if earlier) upon
the expiration of the option term, the option shall terminate and cease to be exercisable. However, each outstanding option shall
immediately terminate and cease to remain outstanding, at the time of the optionee’s cessation of Service, with respect to
any shares for which the option is not otherwise at that time exercisable or in which the optionee is not otherwise vested.


 



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(vii)       Should
(i) the optionee’s Service be terminated for misconduct (including, but not limited to, any act of dishonesty, willful misconduct,
fraud or embezzlement) or (ii) the optionee make any unauthorized use or disclosure of confidential information or trade secrets
of the Company or its parent or subsidiary corporations, then in any such event all outstanding options held by the optionee under
this Article Two shall terminate immediately and cease to be exercisable.


 


2.                 
The Plan Administrator shall have complete discretion, exercisable either at the time the option is granted or at any time while
the option remains outstanding, to permit one or more options held by the optionee under this Article Two to be exercised, during
the limited period of exercisability provided under subparagraph 1 above, not only with respect to the number of shares for which
each such option is exercisable at the time of the optionee’s cessation of Service but also with respect to one or more subsequent
installments of purchasable shares for which the option would otherwise have become exercisable had such cessation of Service not
occurred.


 


3.                 
For purposes of the foregoing provisions of this Section I.C (and for all other purposes under the Plan):


 


(i)       The
optionee shall be deemed to remain in the Service of the Company for so long as such individual renders services on a periodic
basis to the Company (or any parent or subsidiary corporation) in the capacity of an Employee, a non-employee member of the board
of directors or an independent consultant or advisor, unless the agreement evidencing the applicable option grant specifically
states otherwise.


 


(ii)       The
optionee shall be considered to be an Employee for so long as such individual remains in the employ of the Company or one
or more of its parent or subsidiary corporations, subject to the control and direction of the employer entity not only as to the
work to be performed but also as to the manner and method of performance. 


 


D.               
Stockholder Rights.


 


An optionee shall have
no stockholder rights with respect to any shares covered by the option until such individual shall have exercised the option and
paid the option price for the purchased shares. Without limitation, an optionee shall not have any right to receive dividends with
respect to an unexercised option.


 


E.                
No Repricing.


 


No option or stock
appreciation right may be repriced, regranted through cancellation, including cancellation in exchange for cash or other awards,
or otherwise amended to reduce its option price or exercise price (other than with respect to adjustments made in connection with
a transaction or other change in the Company’s capitalization as permitted under this Plan) without the approval of the stockholders
of the Company.


 


F.               
Repurchase Rights.


 


The shares of Common
Stock acquired upon the exercise of options granted under this Article Two may be subject to repurchase by the Company in accordance
with the following provisions:


 


1.       The
Plan Administrator shall have the discretion to grant options which are exercisable for unvested shares of Common Stock under this
Article Two. Should the optionee cease Service while holding such unvested shares, the Company shall have the right to repurchase
any or all those unvested shares at the option price paid per share. The terms and conditions upon which such repurchase right
shall be exercisable (including the period and procedure for exercise and the appropriate vesting schedule for the purchased shares)
shall be established by the Plan Administrator and set forth in the instrument evidencing such repurchase right.


 


2.       All
of the Company’s outstanding repurchase rights shall automatically terminate, and all shares subject to such terminated rights
shall immediately vest in full, upon the occurrence of any Corporate Transaction under Section III of this Article Two, except
to the extent: (i) any such repurchase right is expressly assigned to the successor corporation (or parent thereof) in connection
with the Corporate Transaction or (ii) such termination is precluded by other limitations imposed by the Plan Administrator at
the time the repurchase right is issued.


 


3.       The
Plan Administrator shall have the discretionary authority, exercisable either before or after the optionee’s cessation of
Service, to cancel the Company’s outstanding repurchase rights with respect to one or more shares purchased or purchasable
by the optionee under this Discretionary Option Grant Program and thereby accelerate the vesting of such shares in whole or in
part at any time.


 



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II.               
INCENTIVE OPTIONS


 


The terms and conditions
specified below shall be applicable to all Incentive Options granted under this Article Two. Incentive Options may only be granted
to individuals who are Employees of the Company. Options which are specifically designated as “non-statutory” options
when issued under the Plan shall not be subject to such terms and conditions.


 


A.               
Dollar Limitation. The aggregate fair market value (determined as of the respective date or dates of grant) of the
Common Stock for which one or more options granted to any Employee under this Plan (or any other option plan of the Company or
its parent or subsidiary corporations) may for the first time become exercisable as incentive stock options under the Federal tax
laws during any one calendar year shall not exceed the sum of One Hundred Thousand Dollars ($100,000). To the extent the Employee
holds two or more such options which become exercisable for the first time in the same calendar year, the foregoing limitation
on the exercisability of such options as incentive stock options under the Federal tax laws shall be applied on the basis of the
order in which such options are granted. Should the number of shares of Common Stock for which any Incentive Option first becomes
exercisable in any calendar year exceed the applicable One Hundred Thousand Dollar ($100,000) limitation, then that option may
nevertheless be exercised in such calendar year for the excess number of shares as a non-statutory option under the Federal tax
laws.


 


B.                
10% Stockholder. If any individual to whom an Incentive Option is granted is the owner of stock (as determined under
Section 424(d) of the Internal Revenue Code) possessing 10% or more of the total combined voting power of all classes of stock
of the Company or any one of its parent or subsidiary corporations, then the option price per share shall not be less than one
hundred and ten percent (110%) of the fair market value per share of Common Stock on the grant date, and the option term shall
not exceed five (5) years, measured from the grant date. 


 


C.                
Termination of Employment. Any portion of an Incentive Option that remains outstanding (by reason of the optionee
remaining in the Service of the Company, pursuant to the Plan Administrator’s exercise of discretion under Section V of this
Article Two, or otherwise) more than 3 months following the date an optionee ceases to be an Employee of the Company shall thereafter
be exercisable as a non-statutory option under federal tax laws.


 


Except as modified by
the preceding provisions of this Section II, the provisions of Articles One, Two and Five of the Plan shall apply to all Incentive
Options granted hereunder.


 


III.            
CORPORATE TRANSACTIONS/CHANGES IN CONTROL


 


A.               
For purposes of this Section III (and for all other purposes under the Plan), a Corporate Transaction shall be deemed to occur
in the event of:


 


(1)       a
merger or consolidation in which the Company is not the surviving entity, except for a transaction the principal purpose of which
is to change the State of the Company’s incorporation,


 


(2)       the
sale, transfer or other disposition of all or substantially all of the assets of the Company in liquidation or dissolution of the
Company, or


 


(3)       any
reverse merger in which the Company is the surviving entity but in which securities possessing more than fifty percent (50%) of
the total combined voting power of the Company’s outstanding securities are transferred to a person or persons different
from the persons holding those securities immediately prior to such merger.


 


The exercisability of each option outstanding
under this Article Two that was granted before April 3, 2017 shall automatically accelerate so that each such option shall, immediately
prior to the specified effective date for the Corporate Transaction, become fully exercisable with respect to the total number
of shares of Common Stock at the time subject to such option and may be exercised for all or any portion of such shares.


 


B.    Immediately
after the consummation of the Corporate Transaction, all outstanding options under this Article Two shall fully vest, terminate
and cease to be outstanding, except to the extent continued or assumed (as applicable) by the Company or the successor corporation
or its parent company. The Plan Administrator shall have complete discretion to provide, on such terms and conditions as it sees
fit, for a cash payment to be made to any optionee on account of any option terminated in accordance with this paragraph, in an
amount equal to the excess (if any) of (A) the fair market value of the shares subject to the option as of the date of the Corporate
Transaction, over (B) the aggregate exercise price of the option.


 


C.    Each
outstanding option under this Article Two which is assumed in connection with the Corporate Transaction or is otherwise to continue
in effect shall be appropriately adjusted, immediately after such Corporate Transaction, to apply and pertain to the number and
class of securities which would have been issued to the option holder, in consummation of such Corporate Transaction, had such
person exercised the option immediately prior to such Corporate Transaction. Appropriate adjustments shall also be made to the
option price payable per share, provided the aggregate option price payable for such securities shall remain the same. In
addition, the class and number of securities available for issuance under the Plan following the consummation of the Corporate
Transaction shall be appropriately adjusted. Any such options that are so continued or assumed in connection with a Corporate Transaction
shall be treated as follows: if the grantee’s employment is terminated by the Company without Cause or the grantee resigns
due to a Constructive Termination, in either case within the ninety (90) day period preceding or the two (2) year period following
the Corporate Transaction, the exercisability of such option shall automatically accelerate, and the Company’s outstanding
repurchase rights under this Article Two shall immediately terminate; provided, however, that if the Company, the acquiror or successor
refuses to continue (or, as applicable, assume) the option in connection with the Corporate Transaction, the exercisability of
such option under this Article Two shall automatically accelerate, and the Company’s outstanding repurchase rights under
this Article Two shall immediately terminate upon the occurrence of such Corporate Transaction.


 



    	 	7	 



     


    




D.   The
grant of options under this Article Two shall in no way affect the right of the Company to adjust, reclassify, reorganize or otherwise
change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its
business or assets. 


 


E.        In
the event of a Change in Control: (1) options granted under this Article Two prior to May 23, 2016 shall be subject to the provisions
of the Plan as in effect prior to such date, and (2) options granted on or after May 23, 2016 shall be treated as follows: if the
grantee’s employment is terminated by the Company without Cause or the grantee resigns due to a Constructive Termination,
in either case within the ninety (90) day period preceding or the two (2) year period following the Change in Control, the exercisability
of such option shall automatically accelerate, and the Company’s outstanding repurchase rights under this Article Two shall
immediately terminate; provided, however, that if the acquiror or successor refuses to assume the option in connection with the
Change in Control, the exercisability of such option under this Article Two shall automatically accelerate, and the Company’s
outstanding repurchase rights under this Article Two shall immediately terminate upon the occurrence of such Change in Control.
In the event that the acquiror or successor refuses to assume the option in connection with the Change in Control, the Plan Administrator
shall have complete discretion to provide, on such terms and conditions as it sees fit, for a cash payment to be made to any optionee
on account of any option terminated in accordance with this paragraph, in an amount equal to the excess (if any) of (A) the fair
market value of the shares subject to the option as of the date of the Change in Control, over (B) the aggregate exercise price
of the option.


 


F.   For
purposes of this Section III (and for all other purposes under the Plan), a Change in Control shall be deemed to occur in the event:


 


(1)       any
person or related group of persons (other than the Company or a person that directly or indirectly controls, is controlled by,
or is under common control with, the Company) directly or indirectly acquires beneficial ownership (within the meaning of Rule
13d-3 of the 1934 Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s
outstanding securities pursuant to a tender or exchange offer made directly to the Company’s stockholders; or


 


(2)       there
is a change in the composition of the Board over a period of twenty-four (24) consecutive months or less such that a majority of
the Board members (rounded up to the next whole number) ceases, by reason of one or more contested elections for Board membership,
to be comprised of individuals who either (A) have been Board members continuously since the beginning of such period or (B) have
been elected or nominated for election as Board members during such period by at least two-thirds of the Board members described
in clause (A) who were still in office at the time such election or nomination was approved by the Board.


 


G.               
All options accelerated in connection with the Corporate Transaction or Change in Control (either at the time of the Corporate
Transaction or Change in Control or as otherwise provided in this Section III) shall remain fully exercisable until the expiration
or sooner termination of the option term.


 


H.                
The portion of any Incentive Option accelerated under this Section III in connection with a Corporate Transaction or Change in
Control shall remain exercisable as an incentive stock option under the Federal tax laws only to the extent the dollar limitation
of Section II of this Article Two is not exceeded. To the extent such dollar limitation is exceeded, the accelerated portion of
such option shall be exercisable as a non-statutory option under the Federal tax laws.


 


I.              
For purposes of this Article Two and for purposes of Article Three:


 


1.                 
“Cause” means, unless otherwise provided in the applicable award agreement, the Company’s termination of the
grantee’s employment for any of the following reasons: (i) failure or refusal to comply in any material respect with lawful
policies, standards or regulations of Company; (ii) a violation of a federal or state law or regulation applicable to the business
of the Company; (iii) conviction or plea of no contest to a felony under the laws of the United States or any State; (iv) fraud
or misappropriation of property belonging to the Company or its affiliates; (v) a breach in any material respect of the terms of
any confidentiality, invention assignment or proprietary information agreement with the Company or with a former employer, (vi)
failure to satisfactorily perform the grantee’s duties after having received written notice of such failure and at least
thirty (30) days to cure such failure, or (vii) misconduct or gross negligence in connection with the performance of the grantee’s
duties.


 



    	 	8	 



     


    




2.                 
“Constructive Termination” means, unless otherwise provided in the applicable award agreement, the grantee’s
resignation of employment with the Company within ninety (90) days of the occurrence of any of the following: (i) a material reduction
in the grantee’s responsibilities; (ii) a material reduction in the grantee’s base salary; or (iii) a relocation of
the grantee’s principal office to a location more than 50 miles from the location of the grantee’s existing principal
office.


 


IV.             
STOCK APPRECIATION RIGHTS


 


A.  Provided
and only if the Plan Administrator determines in its discretion to implement the stock appreciation right provisions of this Section
IV, one or more optionees may be granted the right, exercisable upon such terms and conditions as the Plan Administrator may establish,
to surrender all or part of an unexercised option granted under this Article Two in exchange for a distribution from the Company
in an amount equal to the excess of (i) the fair market value (on the option surrender date) of the number of shares in which the
optionee is at the time vested under the surrendered option (or surrendered portion thereof) over (ii) the aggregate option price
payable for such vested shares. The distribution may be made in shares of Common Stock valued at fair market value on the option
surrender date, in cash, or partly in shares and partly in cash, as the Plan Administrator shall determine in its sole discretion.


 


B.   The
shares of Common Stock subject to any option surrendered for an appreciation distribution pursuant to this Section IV shall not
be available for subsequent option grant under the Plan.


 


C.    Stockholder
Rights. A stock appreciation right holder shall have no stockholder rights with respect to any shares covered by the stock
appreciation right until such individual shall have exercised the stock appreciation right and received the acquired shares. Without
limitation, a stock appreciation right holder shall not have any right to receive dividends with respect to a stock appreciation
right.


 


V.                
EXTENSION OF EXERCISE PERIOD


 


The Plan Administrator
shall have full power and authority, exercisable either at the time the option is granted or at any time while the option remains
outstanding, to extend the period of time for which any option granted under this Article Two is to remain exercisable following
the optionee’s cessation of Service or death from the limited period in effect under Section I.C.1 of Article Two to such
greater period of time as the Plan Administrator shall deem appropriate; provided, however, that in no event shall such
option be exercisable after the specified expiration date of the option term.


 


Article
Three

STOCK ISSUANCE PROGRAM


 


I.                  
STOCK ISSUANCE TERMS


 


Shares of Common Stock may be issued under
the Stock Issuance Program through direct and immediate issuances without any intervening option grants. Each such stock issuance
shall be evidenced by a Stock Issuance Agreement which complies with the terms specified below. Shares of Common Stock may also
be issued under the Stock Issuance Program pursuant to restricted stock units (“RSUs”), which are awards granted to
eligible individuals that entitle them to shares of Common Stock (or cash in lieu thereof) in the future following the satisfaction
of vesting conditions imposed by the Plan Administrator.


 


A.               
Vesting Provisions.


 


1.  The
Plan Administrator may issue shares of Common Stock under the Stock Issuance which are to vest in one or more installments over
the grantee's period of Service or upon attainment of specified performance objectives. Alternatively, the Plan Administrator may
issue RSUs under the Stock Issuance Program which shall entitle the recipient to receive a specified number of shares of Common
Stock upon the attainment of one or more Service and/or performance goals established by the Plan Administrator. Upon the attainment
of such Service and/or performance goals, fully-vested shares of Common Stock shall be issued in satisfaction of those RSUs.


 


2.   Any
new, substituted or additional securities or other property (including money paid other than as a regular cash dividend) issued
by reason of any stock dividend, stock split, recapitalization, combination of shares, exchange of shares or other change affecting
the outstanding Common Stock as a class without the Company’s receipt of consideration, shall be issued or set aside with
respect to the shares of unvested Common Stock granted to a grantee or subject to a grantee’s RSUs, subject to (i) the same
vesting requirements applicable to the grantee's unvested shares of Common Stock or RSUs, and (ii) such escrow arrangements as
the Plan Administrator shall deem appropriate.


 



    	 	9	 



     


    




3.    The
grantee shall have full stockholder rights with respect to any shares of Common Stock issued to the grantee under the Stock Issuance
Program, whether or not the grantee's interest in those shares is vested, except that the grantee shall not have dividend rights
with respect to such shares prior to the vesting of such shares. However, the Plan Administrator may provide for a grantee to receive
one or more dividend equivalents with respect to such shares, entitling the grantee to all regular cash dividends payable on such
shares of Common Stock, which amounts shall be (i) subject to the same vesting requirements applicable to the shares of Common
Stock granted hereunder, and (ii) payable upon vesting of the shares to which such dividend equivalents relate.


 


4.  The
grantee shall not have any stockholder rights with respect to any shares of Common Stock subject to an RSU. However, the Plan Administrator
may provide for a grantee to receive one or more dividend equivalents with respect to such shares, entitling the grantee to all
regular cash dividends payable on the shares of Common Stock underlying the RSU, which amounts shall be (i) subject to the same
vesting requirements applicable to the shares of Common Stock underlying the RSU, and (ii) payable upon issuance of the shares
to which such dividend equivalents relate.


 


5.   Should
the grantee cease to remain in Service while holding one or more unvested shares of Common Stock issued under the Stock Issuance
Program or should the performance objectives not be attained with respect to one or more such unvested shares of Common Stock,
then those shares shall be immediately surrendered to the Company for cancellation, and the grantee shall have no further stockholder
rights with respect to those shares. To the extent the surrendered shares were previously issued to the grantee for consideration
paid in cash, the Company shall repay to the grantee the cash consideration paid for the surrendered shares.


 


6. Except
as prohibited by the last sentence of paragraph 1 above, the Plan Administrator may in its discretion waive the surrender and cancellation
of one or more unvested shares of Common Stock which would otherwise occur upon the cessation of the grantee’s Service or
the non-attainment of the performance objectives applicable to those shares. Such waiver shall result in the immediate vesting
of the grantee's interest in the shares of Common Stock as to which the waiver applies. Such waiver may be effected at any time,
whether before or after the grantee's cessation of Service or the attainment or non-attainment of the applicable performance objectives.


 


7.   Outstanding
RSUs under the Stock Issuance Program shall automatically terminate, and no shares of Common Stock shall actually be issued in
satisfaction of those awards, if the Service and/or performance goals established for such awards are not attained. The Plan Administrator,
however, shall, except as prohibited by the last sentence paragraph 1 above, have the discretionary authority to issue shares of
Common Stock in satisfaction of one or more outstanding RSUs as to which the designated Service and/or performance goals are not
attained. Such authority may be exercised at any time, whether before or after the grantee's cessation of Service or the attainment
or non-attainment of the applicable performance objectives.


 


II.               
CORPORATE TRANSACTION/CHANGE IN CONTROL


 


A.  All
of the Company’s outstanding repurchase rights under the Stock Issuance Program shall terminate automatically, and all the
shares of Common Stock subject to those terminated rights shall immediately vest in full, in the event of any Corporate Transaction,
except to the extent (i) those repurchase rights are to be assigned to the successor corporation (or parent thereof) in connection
with the such Corporate Transaction, or (ii) such accelerated vesting is precluded by other limitations imposed in the Stock Issuance
Agreement, unless the Plan Administrator determines to waive such limitations.


 


B.    Each
award which is assigned in connection with (or is otherwise to continue in effect after) a Corporate Transaction shall be appropriately
adjusted such that it shall apply and pertain to the number and class of securities issued to the grantee in consummation of the
Corporate Transaction with respect to the shares granted to grantee under this Article Three.


 


C.   In
the event of a Change in Control: (1) shares of restricted stock and RSUs granted under this Article Three prior to May 23, 2016
shall be subject to the provisions of the Plan as in effect prior to such date, and (2) shares of restricted stock and RSUs granted
on or after May 23, 2016 shall be treated as follows: if the grantee’s employment is terminated by the Company without Cause
or the grantee resigns due to a Constructive Termination, in either case within the ninety (90) day period preceding or the two
(2) year period following the Change in Control, the vesting of such restricted stock and RSUs shall automatically accelerate (and
all of the shares of Common Stock subject to such RSUs shall be issued to grantees), and the Company’s outstanding repurchase
rights under this Article Three shall immediately terminate; provided, however, that if the acquiror or successor refuses to assume
the shares of restricted stock or RSUs or substitute an award of equivalent value (as determined by the Committee in its discretion)
in connection with the Change in Control, the vesting of such restricted stock or RSUs under this Article Three shall automatically
accelerate (and all of the shares of Common Stock subject to such RSUs shall be issued to grantees). To the extent any shares of
restricted stock or RSUs vest in whole or in part based on the achievement of performance criteria, the amount that shall vest
in accordance with the proviso to clause (2) of the immediately-preceding sentence shall vest based on the higher of actual performance
goal attainment through the date of the Change in Control or a prorated amount using target performance and based on the time elapsed
in the performance period as of the date of the Change in Control. 


 



    	 	10	 



     


    




III.            
STOCKHOLDER RIGHTS


 


A.       Individuals
who are granted shares of Common Stock pursuant to this Article Three shall be the owners of such shares for all purposes while
holding such Common Stock, and may exercise full voting rights with respect to those shares at all times while held by the individuals.
Individuals who have been granted RSUs shall have no voting rights with respect to Common Stock underlying RSUs unless and until
such Common Stock is reflected as issued and outstanding shares on the Company’s stock ledger.


 


B.       Individuals
who are granted shares of Common Stock pursuant to this Article Three shall not have dividend rights with respect to such shares
prior to the vesting of such shares. However, the Plan Administrator may provide for a grantee to receive one or more dividend
equivalents with respect to such shares, entitling the grantee to all regular cash dividends payable on such shares of Common Stock,
which amounts shall be (i) subject to the same vesting requirements applicable to the shares of Common Stock granted hereunder,
and (ii) payable upon vesting of the shares to which such dividend equivalents relate.


 


IV.             
SHARE ESCROW / LEGENDS


 


Unvested shares may,
in the Plan Administrator's discretion, be held in escrow by the Company until the grantee's interest in such shares vests or may
be issued directly to the grantee with restrictive legends on the certificates evidencing those unvested shares.


 


Article
Four

AUTOMATIC OPTION GRANT PROGRAM


 


I.                  
ELIGIBILITY


 


The individuals eligible
to receive automatic option grants pursuant to the provisions of this Article Four shall be (i) those individuals who, after the
effective date of this amendment and restatement, first become non-employee Board members, whether through appointment by the Board,
election by the Company’s stockholders, or by continuing to serve as a Board member after ceasing to be employed by the Company,
and (ii) those individuals already serving as non-employee Board members on the effective date of this amendment and restatement.
As used herein, a “non-employee” Board member is any Board member who is not employed by the Company on the date in
question.


 


II.               
TERMS AND CONDITIONS OF AUTOMATIC OPTION GRANTS


 


A.               
Grants. Option grants shall be made under this Article Four as follows:


 


1.                 
Each individual who first becomes a non-employee Board member on or after the effective date of this amendment and restatement
shall automatically be granted at such time a non-statutory stock option under the terms and conditions of this Article Four, to
purchase a number shares of Common Stock equal to the product of (i) 80,000, and (ii) a fraction, the numerator of which is the
number of months (rounded to the nearest whole number) remaining between the date such Board member first became a non-employee
Board member and the Company’s next scheduled Annual Stockholders Meeting, and the denominator of which is 12.


 


2.                 
Immediately following each Annual Stockholders Meeting of the Company, each individual who is then serving as a non-employee Board
member (except for those individuals first elected to serve as non-employee Board members at such meeting), shall automatically
be granted a non-statutory stock option under this Article Four to acquire 40,000 shares of Common Stock.


 


B.              
  Exercise Price. The exercise price per share of each automatic option grant made under this Article Four shall
be equal to one hundred percent (100%) of the fair market value per share of Common Stock on the automatic grant date.


 


C.          
        Payment. The exercise price shall be through one of the following methods (or
a combination thereof):


 


(1)       payment
in cash or check made payable to the Company’s order; or


 



    	 	11	 



     


    




(2)       full
payment in shares of Common Stock held for the requisite period necessary to avoid a charge to the Company’s reported earnings
and valued at fair market value on the Exercise Date (as such term is defined below); or


 


 


(3)       full
payment in a combination of shares of Common Stock held for the requisite period necessary to avoid a charge to the Company’s
reported earnings and valued at fair market value on the Exercise Date and cash or check payable to the Company’s order;
or


 


(4)       full
payment through a sale and remittance procedure pursuant to which the non-employee Board member (I) shall provide irrevocable written
instructions to a designated brokerage firm to effect the immediate sale of the purchased shares and remit to the Company, out
of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate exercise price payable for the purchased
shares and shall (II) concurrently provide written directives to the Company to deliver the certificates for the purchased shares
directly to such brokerage firm in order to complete the sale transaction; or


 


(5)       such
other method as permitted by the Plan Administrator.


 


For purposes of this
subparagraph C, the Exercise Date shall be the date on which written notice of the option exercise is delivered to the Company.
Except to the extent the sale and remittance procedure specified above is utilized for the exercise of the option, payment of the
option price for the purchased shares must accompany the exercise notice.


 


D.               
Option Term. Each automatic grant under this Article Four shall have a term of ten (10) years measured from the automatic
grant date.


 


E.              
   Exercisability.


 


1.                 
Subject to the proviso in Section VI of Article One, each initial automatic grant made pursuant to Section II.A.1 of this Article
Four shall vest and become exercisable in 36 equal monthly installments over a 3-year period measured from the grant date.


 


2.                 
Subject to the proviso in Section VI of Article One, each 40,000 share automatic grant made pursuant to Section II.A.2 of this
Article Four shall vest and become exercisable for the option shares on the twelve (12)-month anniversary of the automatic grant
date.


 


F.                 
Non-Transferability. During the lifetime of the optionee, each automatic option grant, together with the limited
stock appreciation right pertaining to such option, shall be exercisable only by the optionee, except to the extent such option
or the limited stock appreciation right is assigned or transferred (i) by will or by the laws of descent and distribution following
the optionee’s death, or (ii) during optionee’s lifetime either (A) as a gift in connection with the optionee’s
estate plan to one or more members of optionee’s immediate family, to a trust in which optionee and/or one or more such family
members hold more than fifty percent (50%) of the beneficial interest or to an entity in which more than fifty percent (50%) of
the voting interests are owned by optionee and/or one or more such family members, or (B) pursuant to a domestic relations order.
The portion of any option assigned or transferred during optionee’s lifetime shall be exercisable only by the person or persons
who acquire a proprietary interest in the option pursuant to such assignment. The terms applicable to the assigned portion shall
be the same as those in effect for this option immediately prior to such assignment and shall be set forth in such documents issued
to the assignee as the Plan Administrator may deem appropriate.


 


G.        
       Cessation of Board Service.


 


1.                 
Should the optionee cease to serve as a Board member for any reason while holding one or more automatic option grants under this
Article Four, then such optionee shall have the remainder of the ten (10) year term of each such option in which to exercise each
such option for any or all of the shares of Common Stock for which the option is exercisable at the time of such cessation of Board
service. Each such option shall immediately terminate and cease to be outstanding, at the time of such cessation of Board service,
with respect to any shares for which the option is not otherwise at that time exercisable. Upon the expiration of the ten (10)-year
option term, the automatic grant shall terminate and cease to be outstanding in its entirety. Upon the death of the optionee, whether
before or after cessation of Board service, any option held by optionee at the time of optionee’s death may be exercised,
for any or all of the shares of Common Stock for which the option was exercisable at the time of cessation of Board service by
the optionee and which have not been theretofore exercised by the optionee, by the personal representative of the optionee’s
estate or by the person or persons to whom the option is transferred pursuant to the optionee’s will or in accordance with
the laws of descent and distribution. Any such exercise must occur during the reminder of the ten (10) year term of such option. 


 


H.               
Stockholder Rights. The holder of an automatic option grant under this Article Four shall have none of the rights
of a stockholder with respect to any shares subject to such option until such individual shall have exercised the option and paid
the exercise price for the purchased shares. Without limitation, an optionee shall not have any right to receive dividends with
respect to an unexercised option.


 



    	 	12	 



     


    




III.            
CORPORATE TRANSACTIONS/CHANGES IN CONTROL


 


A. In the event
of a Corporate Transaction, (1) the exercisability of each option outstanding under this Article Four granted prior to April 3,
2017 shall automatically accelerate so that each such option shall, immediately prior to the specified effective date for the Corporate
Transaction, become fully exercisable with respect to the total number of shares of Common Stock at the time subject to such option
and may be exercised for all or any portion of such shares, and (2) each option granted under this Article Four thereafter shall
be subject to the same rules specified in Article Two, Section III.


 


B.  Immediately
after the consummation of the Corporate Transaction, all outstanding options under this Article Four shall terminate and cease
to be outstanding, except to the extent assumed by the successor corporation or its parent company. If so provided by the terms
of the Corporate Transaction, the optionee shall receive a cash payment on account of any option terminated in accordance with
this paragraph, in an amount equal to the excess (if any) of (A) the fair market value of the shares subject to the option as valued
pursuant to the Corporate Transaction over (B) the aggregate exercise price of the option.


 


C.    Each
outstanding option under this Article Four which is assumed in connection with the Corporate Transaction or is otherwise to continue
in effect shall be appropriately adjusted, immediately after such Corporate Transaction, to apply and pertain to the number and
class of securities which would have been issued to the option holder, in consummation of such Corporate Transaction, had such
person exercised the option immediately prior to such Corporate Transaction. Appropriate adjustments shall also be made to the
option price payable per share, provided the aggregate option price payable for such securities shall remain the same. Such
option shall be subject to the same rules specified in Article Two, Section III.


 


D.  In
connection with any Change in Control, (1) the exercisability of each option grant made prior to April 3, 2017 and outstanding
at the time under this Article Four shall automatically accelerate so that each such option shall, immediately prior to the specified
effective date for the Change in Control, become fully exercisable with respect to the total number of shares of Common Stock at
the time subject to such option and may be exercised for all or any portion of such shares, and (2) each option granted under this
Article Four thereafter shall be subject to the same rules specified in Article Two, Section III.


 


E.  The
automatic grant of options under this Article Four shall in no way affect the right of the Company to adjust, reclassify, reorganize
or otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or
any part of its business or assets.


 


IV.             
STOCK APPRECIATION RIGHTS


 


A.  With
respect to options granted under the Automatic Option Grant Program prior to March 7, 2006:


 


1.                 
Upon the occurrence of a Hostile Take-Over, the optionee shall have a thirty (30)-day period in which to surrender to the Company
each option held by him or her under this Article Four. The optionee shall in return be entitled to a cash distribution from the
Company in an amount equal to the excess of (i) the Take-Over Price of the shares of Common Stock at the time subject to each surrendered
option (whether or not the option is then exercisable for those shares) over (ii) the aggregate exercise price payable for such
shares. The cash distribution shall be made within five (5) days following the date the option is surrendered to the Company, and
neither the approval of the Plan Administrator nor the consent of the Board shall be required in connection with the option surrender
and cash distribution. Any unsurrendered portion of the option shall continue to remain outstanding and become exercisable in accordance
with the terms of the instrument evidencing such grant. This limited stock appreciation right shall in all events terminate upon
the expiration or sooner termination of the option term and may not be assigned or transferred by the optionee.


 


2.                 
For purposes of Article Four, the following definitions shall be in effect:


 


(i)       A
Hostile Take-Over shall be deemed to occur in the event any person or related group of persons (other than the Company or
a person that directly or indirectly controls, is controlled by, or is under common control with, the Company) directly or indirectly
acquires beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act, as amended) of securities possessing more than
fifty percent (50%) of the total combined voting power of the Company’s outstanding securities pursuant to a tender or exchange
offer made directly to the Company’s stockholders which the Board does not recommend such stockholders to accept.


 


(ii)       The
Take-Over Price per share shall be deemed to be equal to the fair market value per share on the option surrender date.


 



    	 	13	 



     


    




B.           
     With respect to each option granted under the Automatic Option Grant Program on and after March 7, 2006,
each optionee shall have the right to surrender all or part of the option (to the extent not then exercised) in exchange for a
distribution from the Company in an amount equal to the excess of (i) the fair market value (on the option surrender date) of the
number of shares in which the optionee is at the time vested under the surrendered option (or surrendered portion thereof) over
(ii) the aggregate option price payable for such vested shares. The distribution shall be made in shares of Common Stock valued
at fair market value on the option surrender date.


 


C.            
      The shares of Common Stock subject to any option surrendered for an appreciation distribution pursuant
to this Section IV shall not be available for subsequent option grant under the Plan.


 


Article
Five

SECTION 162(M) PERFORMANCE GOALS


 


I.                  
GENERAL


 


The Plan Administrator
may establish performance criteria and level of achievement versus such criteria that shall determine the number of shares of Common
Stock or RSUs to be granted, retained, vested, issued or issuable under or in settlement of or the amount payable pursuant to an
award hereunder, which criteria may be based on Qualifying Performance Criteria (as defined below) or other standards of financial
performance and/or personal performance evaluations. In addition, the Plan Administrator may specify that an award or a portion
of an award is intended to satisfy the requirements for “performance-based compensation” under Section 162(m) of the
Code, provided that the performance criteria for such award or portion of an award that is intended by the Plan Administrator to
satisfy the requirements for “performance-based compensation” under Section 162(m) of the Code shall be a measure based
on one or more Qualifying Performance Criteria selected by the Committee and specified at the time the award is granted. The Committee
shall certify the extent to which any Qualifying Performance Criteria have been satisfied, and the amount payable as a result thereof,
prior to payment, settlement or vesting of any award that is intended to satisfy the requirements for “performance-based
compensation” under Section 162(m) of the Code. Notwithstanding satisfaction of any performance goals, the number of shares
of Common Stock issued under or the amount paid under an award may, to the extent specified in the applicable award agreement,
be reduced by the Committee on the basis of such further considerations as the Committee in its sole discretion shall determine.
The Committee may not delegate its duties under this Article Five to any other person with respect to any award that is intended
to satisfy the requirements for “performance-based compensation” under Section 162(m) of the Code.


 


III.            
QUALIFYING PERFORMANCE CRITERIA


 


For purposes of this
Plan, the term “Qualifying Performance Criteria” shall mean any one or more of the following performance criteria,
either individually, alternatively or in any combination, applied to either the Company as a whole or to a business unit or subsidiary,
either individually, alternatively or in any combination, and measured either quarterly, annually or cumulatively over a period
of years, on an absolute basis or relative to a pre-established target, to previous years’ results or to a designated comparison
group, in each case as specified by the Committee: (i) revenue growth; (ii) earnings before interest, taxes, depreciation and amortization;
(iii) earnings before interest, taxes and amortization; (iv) operating income; (v) pre- or after-tax income; (vi) cash flow; (vii)
cash flow per share; (viii) net income; (ix) earnings per share; (x) return on equity; (xi) return on invested capital; (xii) return
on assets; (xiii) economic value added (or an equivalent metric); (xiv) share price performance; (xv) total shareholder return;
(xvi) improvement in or attainment of expense levels; (xvii) improvement in or attainment of working capital levels; (xviii) debt
reduction; (xix) progress for advancing drug discovery and/or drug development programs; or (xx) implementation, completion or
attainment of measurable objectives with respect to research, development, manufacturing, commercialization, products or projects,
or production volume levels. To the extent consistent with Section 162(m) of the Code, the Committee (A) shall appropriately adjust
any evaluation of performance under a Qualifying Performance Criteria to eliminate the effects of charges for restructurings, discontinued
operations, extraordinary items and all items of gain, loss or expense determined to be extraordinary or unusual in nature or related
to the acquisition or disposal of a segment of a business or related to a change in accounting principle all as determined in accordance
with standards established by opinion No. 30 of the Accounting Principles Board (APB Opinion No. 30) or other applicable or successor
accounting provisions, as well as the cumulative effect of accounting changes, in each case as determined in accordance with generally
accepted accounting principles or identified in the Company’s financial statements or notes to the financial statements,
and (B) may appropriately adjust any evaluation of performance under a Qualifying Performance Criteria to exclude any of the following
events that occurs during a performance period: (i) asset write-downs, (ii) litigation, claims, judgments or settlements, (iii)
the effect of changes in tax law or other such laws or provisions affecting reported results, (iv) the adverse effect of work stoppages
or slowdowns, (v) accruals for reorganization and restructuring programs and (vi) accruals of any amounts for payment under this
Plan or any other compensation arrangement maintained by the Company.


   






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Article
Six

MISCELLANEOUS


 


I.                  
AMENDMENT OF THE PLAN


 


The Board shall have
complete and exclusive power and authority to amend or modify the Plan in any or all respects whatsoever. However, no such amendment
or modification shall, without the consent of the holders, adversely affect rights and obligations with respect to options at the
time outstanding under the Plan. In addition, certain amendments may require stockholder approval pursuant to applicable laws or
regulations.


 


II.               
TAX WITHHOLDING


 


A.             
The Company’s obligation to deliver shares or cash upon the exercise of stock options or stock appreciation rights or upon
the grant or vesting of direct stock issuances or RSUs under the Plan shall be subject to the satisfaction of all applicable Federal,
State and local income and employment tax withholding requirements.


 


B.               
  The Plan Administrator may, in its discretion and upon such terms and conditions as it may deem appropriate, provide any
or all holders of outstanding options or stock issuances under the Plan (other than the automatic option grants under Article Four)
with the election to have the Company withhold, from the shares of Common Stock otherwise issuable upon the exercise or vesting
of such awards, a whole number of such shares with an aggregate fair market value equal to the minimum amount necessary (or, if
determined by the Plan Administrator in its discretion and to the extent adverse accounting treatment does not result, at the maximum
applicable individual statutory tax rates) to satisfy the Federal, State and local income and employment tax withholdings (the
“Taxes”) incurred in connection with the acquisition or vesting of such shares. In lieu of such direct withholding,
one or more grantees may also be granted the right to deliver whole shares of Common Stock to the Company in satisfaction of such
Taxes. Any withheld or delivered shares shall be valued at their fair market value on the applicable determination date for such
Taxes.


 


III.            
EFFECTIVE DATE AND TERM OF PLAN


 


A.  The
Plan, as amended and restated, shall be effective on the date specified in the Board of Directors resolution adopting the Plan.
Except as provided below, each option issued and outstanding under the Plan immediately prior to such effective date shall continue
to be governed solely by the terms and conditions of the agreement evidencing such grant, and nothing in this restatement of the
Plan shall be deemed to affect or otherwise modify the rights or obligations of the holders of such options with respect to their
acquisition of shares of Common Stock thereunder. The Plan Administrator shall, however, have full power and authority, under such
circumstances as the Plan Administrator may deem appropriate (but in accordance with Section I of this Article Five), to extend
one or more features of this amendment and restatement to any options outstanding on the effective date.


 


B.    Unless
sooner terminated in accordance with the other provisions of this Plan, the Plan shall terminate upon the earlier of (i)
ten years following the date this amendment and restatement of the Plan is approved by the Board or (ii) the date on which all
shares available for issuance under the Plan shall have been issued or cancelled pursuant to the exercise, surrender or cash-out
of the options granted hereunder. If the date of termination is determined under clause (i) above, then any options or stock issuances
outstanding on such date shall continue to have force and effect in accordance with the provisions of the agreements evidencing
those awards.


 


C.   Options
may be granted with respect to a number of shares of Common Stock in excess of the number of shares at the time available for issuance
under the Plan, provided each granted option is not to become exercisable, in whole or in part, at any time prior to stockholder
approval of an amendment authorizing a sufficient increase in the number of shares issuable under the Plan. 


 


IV.             
USE OF PROCEEDS


 


Any cash proceeds received
by the Company from the sale of shares pursuant to options or stock issuances granted under the Plan shall be used for general
corporate purposes.


 


V.                
REGULATORY APPROVALS


 


A.            
    The implementation of the Plan, the granting of any option hereunder, and the issuance of stock (i) upon the
exercise or surrender of any option or (ii) under the Stock Issuance Program shall be subject to the procurement by the Company
of all approvals and permits required by regulatory authorities having jurisdiction over the Plan, the options granted under it
and the stock issued pursuant to it.


 



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B.            
     No shares of Common Stock or other assets shall be issued or delivered under the Plan unless and until
there shall have been compliance with all applicable requirements of Federal and state securities laws, including (to the extent
required) the filing and effectiveness of the Form S-8 registration statement for the shares of Common Stock issuable under the
Plan, and all applicable listing requirements of any stock exchange (or the Nasdaq National Market, the Nasdaq Global Select Market
or any successor system, if applicable) on which Common Stock is then trading.


 


VI.             
NO EMPLOYMENT/SERVICE RIGHTS


 


Neither the action of
the Company in establishing or restating the Plan, nor any action taken by the Plan Administrator hereunder, nor any provision
of the Plan shall be construed so as to grant any individual the right to remain in the employ or service of the Company (or any
parent or subsidiary corporation) for any period of specific duration, and the Company (or any parent or subsidiary corporation
retaining the services of such individual) may terminate such individual’s employment or service at any time and for any
reason, with or without cause.


 


VII.          
MISCELLANEOUS PROVISIONS


 


A.   Except
to the extent otherwise expressly provided in the Plan, the right to acquire Common Stock or other awards under the Plan may not
be assigned, encumbered or otherwise transferred by any grantee.


 


B.  Awards
issued under the Plan shall be subject to any clawback policy of the Company as in effect from time-to-time.


 


C. The provisions
of the Plan relating to the exercise of options and the issuance and/or vesting of shares shall be governed by the laws of the
State of Delaware without resort to that state’s conflict-of-laws provisions, as such laws are applied to contracts entered
into and performed in such State.


 


D.   The
Plan is intended to be an unfunded plan. Grantees are and shall at all times be general creditors of the Company with respect to
their awards. If the Committee or the Company chooses to set aside funds in a trust or otherwise for the payment of awards under
the Plan, such funds shall at all times be subject to the claims of the creditors of the Company in the event of its bankruptcy
or insolvency.


 


 


 


 


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