Exhibit 10.3


 


TRANS1 INC.


AMENDED AND RESTATED EMPLOYEE STOCK PURCHASE
PLAN


 


(originally adopted July 19, 2007, amended
and restated December 15, 2010,


and subsequently amended and restated
as of May 1, 2013)


 


ARTICLE
1.


 


Purpose,
commencement and history of the plan


 


Section
1.1.          Purpose. The purpose of the Plan is to provide
employees of the Company and its Designated Subsidiaries with an opportunity to purchase Common Stock through accumulated payroll
deductions. The Company’s intention is to have the Plan qualify as an “employee stock purchase plan” under Section
423 of the Code. The provisions of the Plan, accordingly, will be construed so as to extend and limit Plan participation in a uniform
and nondiscriminatory basis consistent with the requirements of Section 423 of the Code.


 


Section 1.2           Commencement
and History.


 


The Plan was adopted by the Company’s
Board of Directors on July 19, 2007 and by the stockholders of the Company on August 29, 2007. The Plan initially became effective
on October 16, 2007, the effective date of the Company’s first Registration Statement filed with the Securities and Exchange
Commission registering the Company’s Common Stock. The Compensation Committee of the Board of Directors serves as the Administrator
of the Plan. The Plan initially authorized the issuance of up to an aggregate of 250,000 shares of Common Stock to Participants
during the term of the Plan subject to increases in available shares on the first day of each fiscal year beginning in 2008, equal
to the lesser of: (i) two percent (2%) of the outstanding shares of Common Stock on the first day of such fiscal year or (ii) an
amount determined by the Administrator.


 


Pursuant to the authority granted the Administrator
under Section 20.1 of the Plan, the Administrator elected to indefinitely suspend operation of the Plan immediately following the
effective date of the Registration Statement such that no offerings were made under the Plan and no shares were issued to Participants
under the Plan during the fiscal years ended December 31, 2007, 2008, 2009, and 2010. In addition, pursuant to the authority granted
the Administrator under Section 13.1 of the Plan, the Administrator elected not to reserve any additional shares for issuance under
the Plan as of the first day of each fiscal year beginning January 1, 2008, 2009, 2010, and 2011.


 


On December 15, 2010, the Administrator
amended and restated the Plan in order to change the discount at which Participants could purchase Common Stock pursuant to the
Plan from five percent (5%) to fifteen percent (15%) and confirm the 500,000 share cap on Common Stock issuable under the Plan.
The Administrator, pursuant to Section 20.1 authorized commencement of offerings under the Plan effective with an initial offering
period effective January 15, 2011. The Administrator, pursuant to Section 13.1, elected not to increase the shares reserved for
issuance under the Plan as of January 1, 2011 but did increase the shares available for issuance under the Plan on January 1, 2012
by 250,000, the maximum additional shares permitted under the Plan.


 




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On May 1, 2013, the Administrator further
amended and restated the Plan in order to add a “look-back” feature such that the Purchase Price under the Plan is
the lesser of eighty-five percent (85%) of the fair market value of the Company’s Common Stock on either the first day or
the last day of each Offering Period effective with the first Offering Period commencing on or following June 1, 2013 and to clarify
the cap on the maximum number of shares of Common Stock available for issuance under the Plan. (Prior to this amendment and restatement,
the Purchase Price was set at eighty-five percent (85%) of the fair market value of the Company’s Common Stock on the last
day of each Offering Period.) As of the May 1, 2013 restatement, the Plan had a total of 398,966 shares available for issuance
after taking into account the shares issued in Fiscal Years ending December 31, 2011 and 2012 and the additional shares reserved
under the Plan on January 1, 2012.


 


ARTICLE
2.


 


Definitions


 


Section
2.1.          “Administrator” means the Board or
any Committee designated by the Board to administer the Plan pursuant to Section 14.


 


Section
2.2.          “Applicable Laws” means the requirements
relating to the administration of equity-based awards under U.S. state corporate laws, U.S. federal and state securities laws,
the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any foreign
country or jurisdiction where options are, or will be, granted under the Plan.


 


Section
2.3.          “Board” means the Board of Directors
of the Company.


 


Section
2.4.          “Change in Control” means (i) the
acquisition, directly or indirectly, by any person or group (within the meaning of Section 13(d)(3) of the Exchange Act) of
the beneficial ownership of securities of the Company possessing more than fifty percent (50%) of the total combined voting power
of all outstanding securities of the Company; (ii) 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 in which the Company is incorporated; (iii) a 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 or acquired by a person or persons different
from the persons holding those securities immediately prior to such merger; (iv) the sale, transfer or other disposition of
all or substantially all of the assets of the Company; or (v) a complete liquidation or dissolution of the Company.


 


Section
2.5.          “Code” means the Internal Revenue
Code of 1986, as amended from time to time.


 


Section
2.6.          “Committee” means a committee of
two or more members of the Board appointed to administer the Plan, as set forth in Section 14 hereof.


 


Section
2.7.          “Common Stock” means the common stock
of the Company.


 


Section
2.8.          “Company” means TranS1 Inc., a Delaware
corporation, or any entity that is a successor to the Company.


 




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Section
2.9.          “Compensation” means an Employee’s
base straight time gross earnings, commissions (to the extent such commissions are an integral, recurring part of compensation),
overtime and shift premium, but exclusive of payments for incentive compensation, bonuses and other compensation.


 


Section
2.10.         “Designated Subsidiary” means any Subsidiary
that has been designated by the Administrator from time to time in its sole discretion as eligible to participate in the Plan.


 


Section
2.11.         “Director” means a member of the Board.


 


Section
2.12.         “Eligible Employee” means any individual
who is a common law employee of an Employer and is customarily employed for at least twenty (20) hours per week and more than five
(5) months in any calendar year by the Employer. For purposes of the Plan, the employment relationship will be treated as continuing
intact while the individual is on sick leave or other leave of absence that the Employer approves. Where the period of leave exceeds
ninety (90) days and the individual’s right to reemployment is not guaranteed either by statute or by contract, the employment
relationship will be deemed to have terminated on the ninety-first (91st) day of such leave. The Administrator, in its discretion,
from time to time may, prior to an Offering Date for all options to be granted on such Offering Date, determine (on a uniform and
nondiscriminatory basis) that the definition of Eligible Employee will or will not include an individual if he or she: (i) has
not completed at least two years of service since his or her last hire date (or such lesser period of time as may be determined
by the Administrator in its discretion), (ii) customarily works not more than twenty (20) hours per week (or such lesser period
of time as may be determined by the Administrator in its discretion), (iii) customarily works not more than five (5) months
per calendar year (or such lesser period of time as may be determined by the Administrator in its discretion), (iv) is an
officer or other manager, or (v) is a highly compensated employee under Section 414(q) of the Code.


 


Section
2.13.         “Employer” means any one or all of the
Company and its Designated Subsidiaries.


 


Section
2.14.         “Exchange Act” means the Securities Exchange
Act of 1934, as amended, including the rules and regulations promulgated thereunder.


 


Section
2.15.         “Exercise Date” means the last day of
each Offering Period.


 


Section
2.16.         “Fair Market Value” means, as of any date
and unless the Administrator determines otherwise the value of Common Stock determined as follows:


 


(a)          If
the Common Stock is then listed or admitted to trading on a stock exchange which reports closing sale prices, the Fair Market Value
shall be the closing sale price on the date of valuation on such principal stock exchange on which the Common Stock is then listed
or admitted to trading, or, if no closing sale price is quoted on such day, then the Fair Market Value shall be the closing sale
price of the Common Stock on such exchange on the next preceding day on which a closing sale price is reported;


 


(b)          If
the Common Stock is not then listed or admitted to trading on a stock exchange which reports closing sale prices, the Fair Market
Value shall be the average of the closing bid and asked prices of the Common Stock in the over the counter market on the date of
valuation; or


 




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(c)          If
neither (a) nor (b) is applicable as of the date of valuation, then the Fair Market Value shall be determined by the Administrator
in good faith using any reasonable method of evaluation, which determination shall be conclusive and binding on all interested
parties.


 


Section
2.17.         “Fiscal Year” means the fiscal year of
the Company.


 


Section
2.18.         “Offering Date means the first day of each Offering
Period.


 


Section
2.19.         “Offering Periods” means the periods of
approximately six months during which an option granted pursuant to the Plan may be exercised, (i) commencing on the first
Trading Day on or after June 1 of each year and terminating on the first Trading Day on or following November 30, approximately
six months later, and (ii) commencing on the first Trading Day on or after December 1 of each year and terminating on
the first Trading Day on or following May 31, approximately six months later. The duration and timing of Offering Periods
may be changed pursuant to Sections 4 and 20.


 


Section
2.20.         “Parent” means a “parent corporation,”
whether now or hereafter existing, as defined in Section 424(e) of the Code.


 


Section
2.21.         “Plan” means this Amended and Restated
TranS1 Inc. Employee Stock Purchase Plan.


 


Section
2.22.         “Purchase Price” for Offering Periods
commencing before June 1, 2013 means an amount equal to eighty-five percent (85%) of the Fair Market Value of a share of Common
Stock on the Exercise Date. The term “Purchase Price” for Offering Periods commencing on or after June 1, 2013
shall mean an amount equal to eighty-five percent (85%) of the Fair Market Value of a share of Common Stock on the Offering Date
or on the Exercise Date, whichever is lower; provided, however, that the Purchase Price may be determined for subsequent Offering
Periods by the Administrator subject to compliance with Section 423 of the Code (or any successor rule or provision or any other
applicable law, regulation or stock exchange rule) or pursuant to Section 20.


 


Section
2.23.         “Subsidiary” means a “subsidiary
corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code.


 


Section
2.24.         “Trading Day” means a day on which the
national stock exchange upon which the Common Stock is listed is open for trading.


 


ARTICLE
3.


 


Eligibility


 


Section
3.1.          Each Employee of the Company or any of its operating
subsidiaries, who, on the Offering Date, is an Eligible Employee may become a participant in the Plan on the Offering Date coincident
with or next following his satisfaction of the requirements of becoming an Eligible Employee.


 


Section
3.2.          Any Eligible Employee on a given Offering Date will
be eligible to participate in the Plan, subject to the requirements of Section 5.


 




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Section
3.3.          Any provisions of the Plan to the contrary notwithstanding,
no Eligible Employee will be granted an option under the Plan (i) to the extent that, immediately after the grant, such Eligible
Employee (or any other person whose stock would be attributed to such Eligible Employee pursuant to Section 424(d) of the
Code) would own capital stock of the Company or any Parent or Subsidiary of the Company and/or hold outstanding options to purchase
such stock possessing five percent (5%) or more of the total combined voting power or value of all classes of the capital stock
of the Company or of any Parent or Subsidiary of the Company, or (ii) to the extent that his or her rights to purchase stock under
all employee stock purchase plans (as defined in Section 423 of the Code) of the Company or any Parent or Subsidiary of the
Company accrues at a rate which exceeds twenty-five thousand dollars ($25,000) worth of stock (determined at the Fair Market Value
of the stock at the time such option is granted) for each calendar year in which such option is outstanding at any time.


 


ARTICLE
4.


 


Offering
Periods


 


Section
4.1.          The Plan will be implemented by consecutive Offering
Periods with a new Offering Period commencing on the first Trading Day on or after June 1 and December 1 each year, or on
such other date as the Administrator will determine; provided, however, that the first Offering Period for which this Plan as amended
and restated is implemented shall commence on the first Trading Day on or after June 1, 2013. The Administrator will have the power
to change the duration of Offering Periods (including the commencement dates thereof) with respect to future offerings without
stockholder approval if such change is announced prior to the scheduled beginning of the first Offering Period to be affected thereafter.


 


ARTICLE
5.


 


Participation


 


Section
5.1.          An Eligible Employee will be entitled to continue to
participate in an Offering Period pursuant to Section 3.1 only if such individual submits a subscription agreement authorizing
payroll deductions in a form determined by the Administrator (which may be similar to the form attached hereto as Exhibit A)
to the Company’s designated plan administrator (i) no earlier than the effective date of the Form S-8 registration statement
with respect to the issuance of Common Stock under this Plan and (ii) no later than five (5) business days following the effective
date of such S-8 registration statement or such other period of time as the Administrator may determine (the “Enrollment
Window”).


 


Section 5.2.          An
Eligible Employee may participate in the Plan pursuant to Section 3(b) by (i) submitting to the Company’s payroll office
(or its designee), on or before a date prescribed by the Administrator prior to an applicable Offering Date, a properly completed
subscription agreement authorizing payroll deductions in the form provided by the Administrator for such purpose, or (ii) following
an electronic or other enrollment procedure prescribed by the Administrator.


 




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ARTICLE
6.


 


Payroll
Deductions


 


Section
6.1.          At the time a participant enrolls in the Plan pursuant
to Section 5, he or she will elect to have payroll deductions made on each pay day during the Offering Period in an amount
not exceeding ten percent (10%) of the Compensation which he or she receives on each pay day during the Offering Period; provided,
however, that should a pay day occur on an Exercise Date, a participant will have the payroll deductions made on such day applied
to his or her account under the subsequent Offering Period. A participant’s subscription agreement will remain in effect
for successive Offering Periods unless terminated as provided in Section 10 hereof.


 


Section
6.2.          Payroll deductions for a participant will commence on
the first pay day following the Offering Date and will end on the last pay day prior to the Exercise Date of such Offering Period
to which such authorization is applicable, unless sooner terminated by the participant as provided in Section 10 hereof, provided,
however, that for the first Offering Period, payroll deductions will commence on the first pay day on or following the end of the
Enrollment Window.


 


Section
6.3.          All payroll deductions made for a participant will be
credited to his or her account under the Plan and will be withheld in whole percentages only. A participant may not make any additional
payments into such account.


 


Section
6.4.          A participant may discontinue his or her participation
in the Plan as provided in Section 10, or may increase or decrease the rate of his or her payroll deductions during the Offering
Period by (i) properly completing and submitting to the Company’s payroll office (or its designee), on or before a date
prescribed by the Administrator prior to an applicable Exercise Date, a new subscription agreement authorizing the change in payroll
deduction rate in the form provided by the Administrator for such purpose, or (ii) following an electronic or other procedure
prescribed by the Administrator; provided, however, that a participant may only make one payroll deduction change during each Offering
Period. If a participant has not followed such procedures to change the rate of payroll deductions, the rate of his or her payroll
deductions will continue at the originally elected rate throughout the Offering Period and future Offering Periods (unless terminated
as provided in Section 10). The Administrator may, in its sole discretion, limit the nature and/or number of payroll deduction
rate changes that may be made by participants during any Offering Period. Any change in payroll deduction rate made pursuant to
this Section 6.4 will be effective as of the first full payroll period following five (5) business days after the date on
which the change is made by the participant (unless the Administrator, in its sole discretion, elects to process a given change
in payroll deduction rate more quickly).


 


Section
6.5.          Notwithstanding the foregoing, to the extent necessary
to comply with Section 423(b)(8) of the Code and Section 3.3, a participant’s payroll deductions may be decreased
to zero percent (0%) at any time during an Offering Period. Subject to Section 423(b)(8) of the Code and Section 3.3
hereof, payroll deductions will recommence at the rate originally elected by the participant effective as of the beginning of the
first Offering Period in which the employee first participates in the Plan which is scheduled to end in the following calendar
year, unless terminated by the participant as provided in Section 10.


 




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Section
6.6.          At the time the option is exercised, in whole or in
part, or at the time some or all of the Common Stock issued under the Plan is disposed of, the participant must make adequate provision
for the Company’s or Employer’s federal, state, or any other tax liability payable to any authority, national insurance,
social security or other tax withholding obligations, if any, which arise upon the exercise of the option or the disposition of
the Common Stock. At any time, the Company or the Employer may, but will not be obligated to, withhold from the participant’s
compensation the amount necessary for the Company or the Employer to meet applicable withholding obligations, including any withholding
required to make available to the Company or the Employer any tax deductions or benefits attributable to a sale or early disposition
of Common Stock by the Eligible Employee.


 


ARTICLE
7.


 


Grant
of Option


 


Section
7.1.          On the Offering Date of each Offering Period, each Eligible
Employee participating in such Offering Period will be granted an option to purchase on each Exercise Date during such Offering
Period (at the applicable Purchase Price) up to a number of shares of Common Stock determined by dividing such Eligible Employee’s
payroll deductions accumulated prior to such Exercise Date and retained in the Eligible Employee’s account as of the Exercise
Date by the applicable Purchase Price; provided that in no event will an Eligible Employee be permitted to purchase during each
Offering Period more than 10,000 shares of the Common Stock (subject to any adjustment pursuant to Section 19), and provided
further that such purchase will be subject to the limitations set forth in Sections 3.3 and 13. The Eligible Employee may
accept the grant of such option with respect to the first Offering Period by submitting a properly completed subscription agreement
in accordance with the requirements of Section 5.1 on or before the last day of the Enrollment Window, and (ii) with
respect to any future Offering Period under the Plan, by electing to participate in the Plan in accordance with the requirements
of Section 5.2. The Administrator may, for future Offering Periods, increase or decrease, in its absolute discretion, the
maximum number of shares of Common Stock that an Eligible Employee may purchase during each Offering Period of an Offering Period.
Exercise of the option will occur as provided in Section 8, unless the participant has withdrawn pursuant to Section 10.
The option will expire on the last day of the Offering Period.


 


ARTICLE
8.


 


Exercise
of Option


 


Section
8.1.          Unless a participant withdraws from the Plan as provided
in Section 10, his or her option for the purchase of shares of Common Stock will be exercised automatically on the Exercise
Date, and the maximum number of full shares subject to option will be purchased for such participant at the applicable Purchase
Price with the accumulated payroll deductions in his or her account. No fractional shares of Common Stock will be purchased; any
payroll deductions accumulated in a participant’s account which are not sufficient to purchase a full share will be retained
in the participant’s account for the subsequent Offering Period, subject to earlier withdrawal by the participant as provided
in Section 10. Any other funds left over in a participant’s account after the Exercise Date will be returned to the
participant. During a participant’s lifetime, a participant’s option to purchase shares hereunder is exercisable only
by him or her.


 




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Section
8.2.          If the Administrator determines that, on a given Exercise
Date, the number of shares of Common Stock with respect to which options are to be exercised may exceed the number of shares of
Common Stock available for sale under the Plan on such Exercise Date, the Administrator may in its sole discretion provide that
the Company will make a pro rata allocation of the shares of Common Stock available for purchase on such Exercise Date, in as uniform
a manner as will be practicable and as it will determine in its sole discretion to be equitable among all participants exercising
options to purchase Common Stock on such Exercise Date, and continue all Offering Periods then in effect or terminate all Offering
Periods then in effect pursuant to Section 20. The Company may make a pro rata allocation of the shares available on the Offering
Date of any applicable Offering Period pursuant to the preceding sentence, notwithstanding any authorization of additional shares
for issuance under the Plan by the Company’s stockholders subsequent to such Offering Date.


 


ARTICLE
9.


 


Delivery


 


Section
9.1.          As soon as reasonably practicable after each Exercise
Date on which a purchase of shares of Common Stock occurs, the Company will arrange the delivery to each participant the shares
purchased upon exercise of his or her option in a form determined by the Administrator (in its sole discretion) and pursuant to
rules established by the Administrator. The Company may permit or require that shares be deposited directly with a broker designated
by the Company or to a designated agent of the Company, and the Company may utilize electronic or automated methods of share transfer.
The Company may require that shares be retained with such broker or agent for a designated period of time and/or may establish
other procedures to permit tracking of disqualifying dispositions of such shares. No participant will have any voting, dividend,
or other stockholder rights with respect to shares of Common Stock subject to any option granted under the Plan until such shares
have been purchased and delivered to the participant as provided in this Section 9.1.


 


ARTICLE
10.


 


Withdrawal


 


Section
10.1.          A participant may withdraw all but not less than all
of the payroll deductions credited to his or her account and not yet used to exercise his or her option under the Plan at any time
by (i) submitting to the Company’s payroll office (or its designee) a written notice of withdrawal in the form prescribed
by the Administrator for such purpose, or (ii) following an electronic or other withdrawal procedure prescribed by the Administrator.
All of the participant’s payroll deductions credited to his or her account will be paid to such participant promptly after
receipt of notice of withdrawal and such participant’s option for the Offering Period will be automatically terminated, and
no further payroll deductions for the purchase of shares will be made for such Offering Period. If a participant withdraws from
an Offering Period, payroll deductions will not resume at the beginning of the succeeding Offering Period, unless the participant
re-enrolls in the Plan in accordance with the provisions of Section 5.


 


Section
10.2.          A participant’s withdrawal from an Offering Period
will not have any effect upon his or her eligibility to participate in any similar plan which may hereafter be adopted by the Company
or in succeeding Offering Periods which commence after the termination of the Offering Period from which the participant withdraws.


 




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ARTICLE
11.


 


Termination
of Employment


 


Section
11.1.          Upon a participant’s ceasing to be an Eligible
Employee, for any reason, he or she will be deemed to have elected to withdraw from the Plan and the payroll deductions credited
to such participant’s account during the Offering Period but not yet used to purchase shares of Common Stock under the Plan
will be returned to such participant or, in the case of his or her death, to the person or persons entitled thereto under Section 15,
and such participant’s option will be automatically terminated.


 


ARTICLE
12.


 


Interest


 


Section
12.1.          No interest will accrue on the payroll deductions of
a participant in the Plan.


 


ARTICLE
13.


 


Stock


 


Section
13.1.          Subject to adjustment upon changes in capitalization
of the Company as provided in Section 19 hereof, the maximum number of shares of Common Stock which will be made available
for sale under the Plan will be 250,000 shares, plus an annual increase to be added on the first day of each Fiscal Year beginning
with the 2011 Fiscal Year, equal to the least of (i) two percent (2%) of the outstanding shares of Common Stock on such date or
(ii) an amount determined by the Administrator; provided, however, that the maximum number of shares of Common Stock available
for issuance under the Plan (including the initial amount and any annual adjustments) shall not exceed 500,000 shares.


 


Section
13.2.          Until the shares are issued (as evidenced by the appropriate
entry on the books of the Company or of a duly authorized transfer agent of the Company), a participant will only have the rights
of an unsecured creditor with respect to such shares, and no right to vote or receive dividends or any other rights as a stockholder
will exist with respect to such shares.


 


Section
13.3.          Shares of Common Stock to be delivered to a participant
under the Plan will be registered in the name of the participant or in the name of the participant and his or her spouse.


 


ARTICLE
14.


 


Administration


 


Section
14.1.          The Plan will be administered by the Board or a Committee
appointed by the Board, which Committee will be constituted to comply with Applicable Laws. The Administrator will have full and
exclusive discretionary authority to construe, interpret and apply the terms of the Plan, to determine eligibility and to adjudicate
all disputed claims filed under the Plan. Every finding, decision and determination made by the Administrator will, to the full
extent permitted by law, be final and binding upon all parties. Notwithstanding any provision to the contrary in this Plan, the
Administrator may adopt rules or procedures relating to the operation and administration of the Plan to accommodate the specific
requirements of local laws and procedures for jurisdictions outside of the United States. Without limiting the generality of the
foregoing, the Administrator is specifically authorized to adopt rules and procedures regarding eligibility to participate, the
definition of Compensation, handling of payroll deductions, making of contributions to the Plan (including, without limitation,
in forms other than payroll deductions), establishment of bank or trust accounts to hold payroll deductions, payment of interest,
conversion of local currency, obligations to pay payroll tax, determination of beneficiary designation requirements, withholding
procedures and handling of stock certificates which vary with local requirements.


 




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ARTICLE
15.


 


Designation
of Beneficiary


 


Section
15.1.          A participant may file a designation of a beneficiary
who is to receive any shares of Common Stock and cash, if any, from the participant’s account under the Plan in the event
of such participant’s death subsequent to an Exercise Date on which the option is exercised but prior to delivery to such
participant of such shares and cash. In addition, a participant may file a designation of a beneficiary who is to receive any cash
from the participant’s account under the Plan in the event of such participant’s death prior to exercise of the option.
If a participant is married and the designated beneficiary is not the spouse, spousal consent will be required for such designation
to be effective.


 


Section
15.2.          Such designation of beneficiary may be changed by the
participant at any time by notice in a form determined by the Administrator. In the event of the death of a participant and in
the absence of a beneficiary validly designated under the Plan who is living at the time of such participant’s death, the
Company will deliver such shares and/or cash to the executor or administrator of the estate of the participant, or if no such executor
or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such shares
and/or cash to the spouse or to any one or more dependents or relatives of the participant, or if no spouse, dependent or relative
is known to the Company, then to such other person as the Company may designate.


 


Section
15.3.          All beneficiary designations will be in such form and
manner as the Administrator may designate from time to time.


 


ARTICLE
16.


 


Transferability


 


Section
16.1.          Neither payroll deductions credited to a participant’s
account nor any rights with regard to the exercise of an option or to receive shares of Common Stock under the Plan may be assigned,
transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution or as provided
in Section 15 hereof) by the participant. Any such attempt at assignment, transfer, pledge or other disposition will be without
effect, except that the Company may treat such act as an election to withdraw funds from an Offering Period in accordance with
Section 10 hereof.


 




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ARTICLE
17.


 


Use
of Funds


 


Section
17.1.          The Company may use all payroll deductions received
or held by it under the Plan for any corporate purpose, and the Company will not be obligated to segregate such payroll deductions.
Until shares of Common Stock are issued, participants will only have the rights of an unsecured creditor with respect to such shares.


 


ARTICLE
18.


 


Reports


 


Section
18.1.          Individual accounts will be maintained for each participant
in the Plan. Statements of account will be given to participating Eligible Employees at least annually, which statements will set
forth the amounts of payroll deductions, the Purchase Price, the number of shares of Common Stock purchased and the remaining cash
balance, if any.


 


ARTICLE
19.


 


Adjustments,
Dissolution, Liquidation,


Merger
or Change in Control


 


Section
19.1.          In the event that any dividend or other distribution
(whether in the form of cash, Common Stock, other securities, or other property), recapitalization, stock split, reverse stock
split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Common Stock or other
securities of the Company, or other change in the corporate structure of the Company affecting the Common Stock such that an adjustment
is determined by the Administrator (in its sole discretion) to be appropriate in order to prevent dilution or enlargement of the
benefits or potential benefits intended to be made available under the Plan, then the Administrator will, in such manner as it
may deem equitable, adjust the number and class of Common Stock which may be delivered under the Plan, the Purchase Price per share
and the number of shares of Common Stock covered by each option under the Plan which has not yet been exercised, and the numerical
limits of Sections 7 and 13.


 


Section
19.2.          In the event of the proposed dissolution or liquidation
of the Company, any Offering Period then in progress will be shortened by setting a new Exercise Date (the “New Exercise
Date”), and will terminate immediately prior to the consummation of such proposed dissolution or liquidation, unless provided
otherwise by the Administrator. The New Exercise Date will be before the date of the Company’s proposed dissolution or liquidation.
The Administrator will notify each participant in writing, at least ten (10) business days prior to the New Exercise Date, that
the Exercise Date for the participant’s option has been changed to the New Exercise Date and that the participant’s
option will be exercised automatically on the New Exercise Date, unless prior to such date the participant has withdrawn from the
Offering Period as provided in Section 10 hereof.


 




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Section
19.3.          In the event of a Change in Control, each outstanding
option will be assumed or an equivalent option substituted by the successor corporation or a Parent or Subsidiary of the successor
corporation. In the event that the successor corporation refuses to assume or substitute for the option, the Offering Period with
respect to which such option relates will be shortened by setting a New Exercise Date and will end on the New Exercise Date. The
New Exercise Date will occur before the date of the Company’s proposed Change in Control. The Administrator will notify each
participant in writing prior to the New Exercise Date, that the Exercise Date for the participant’s option has been changed
to the New Exercise Date and that the participant’s option will be exercised automatically on the New Exercise Date, unless
prior to such date the participant has withdrawn from the Offering Period as provided in Section 10 hereof.


 


ARTICLE
20.


 


Amendment
or Termination


 


Section
20.1.          The Administrator, in its sole discretion, may amend,
suspend, or terminate the Plan, or any part thereof, at any time and for any reason. If the Plan is terminated, the Administrator,
in its discretion, may elect to terminate the outstanding Offering Period either immediately or upon completion of the purchase
of shares of Common Stock on the next Exercise Date (which may be sooner than originally scheduled, if determined by the Administrator
in its discretion), or may elect to permit the Offering Period to expire in accordance with its terms (and subject to any adjustment
pursuant to Section 19). If the Offering Period is terminated prior to expiration, all amounts then credited to participants’
accounts which have not been used to purchase shares of Common Stock will be returned to the participants (without interest thereon,
except as otherwise required under local laws) as soon as administratively practicable.


 


Section
20.2.          Without stockholder consent and without limiting Section 20.1,
the Administrator will be entitled to change the Offering Periods, limit the frequency and/or number of changes in the amount withheld
during an Offering Period, establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars, permit
payroll withholding in excess of the amount designated by a participant in order to adjust for delays or mistakes in the Company’s
processing of properly completed withholding elections, establish reasonable waiting and adjustment periods and/or accounting and
crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each participant properly correspond
with amounts withheld from the participant’s Compensation, and establish such other limitations or procedures as the Administrator
determines in its sole discretion advisable which are consistent with the Plan.


 


Section
20.3.          In the event the Administrator determines that the
ongoing operation of the Plan may result in unfavorable financial accounting consequences, the Administrator may, in its discretion
and, to the extent necessary or desirable, modify, amend or terminate the Plan to reduce or eliminate such accounting consequence
including, but not limited to:


 


(a)          amending
the Plan to conform with the safe harbor definition under FASB Accounting Standards Codification (ASC) Topic 718 (formerly Statement
of Financial Accounting Standards (SFAS) No.123(R)), including with respect to an Offering Period underway at the time;


 


(b)          altering
the Purchase Price for any Offering Period including an Offering Period underway at the time of the change in Purchase Price;


 


(c)          shortening
any Offering Period so that Offering Period ends on a New Exercise Date, including an Offering Period underway at the time of the
Board action;


 




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(d)          reducing
the maximum percentage of Compensation a participant may elect to set aside as payroll deductions; and


 


(e)          reducing
the maximum number of Shares a participant may purchase during any Offering Period.


 


Such modifications or amendments will not
require stockholder approval or the consent of any Plan participants.


 


ARTICLE
21.


 


Notices


 


Section
21.1.          All notices or other communications by a participant
to the Company under or in connection with the Plan will be deemed to have been duly given when received in the form and manner
specified by the Company at the location, or by the person, designated by the Company for the receipt thereof


 


ARTICLE
22.


 


Conditions
Upon on Issuance of Shares


 


Section
22.1.          Shares of Common Stock will not be issued with respect
to an option unless the exercise of such option and the issuance and delivery of such shares pursuant thereto will comply with
all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of 1933, as amended, the
Exchange Act, the rules and regulations promulgated thereunder, and the requirements of any stock exchange upon which the shares
may then be listed, and will be further subject to the approval of counsel for the Company with respect to such compliance.


 


Section
22.2.          As a condition to the exercise of an option, the Company
may require the person exercising such option to represent and warrant at the time of any such exercise that the shares are being
purchased only for investment and without any present intention to sell or distribute such shares if, in the opinion of counsel
for the Company, such a representation is required by any of the aforementioned applicable provisions of law.


 


ARTICLE
23.


 


Term
of Plan


 


Section
23.1.          The Plan will become effective upon the earlier to
occur of its adoption by the Board or its approval by the stockholders of the Company. It will continue in effect for a term of
twenty (20) years, unless sooner terminated under Section 20.


 




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ARTICLE
24.


 


Stockholder
Approval


 


Section
24.1.          The Plan will be subject to approval by the stockholders
of the Company within twelve (12) months after the date the Plan is adopted by the Board. Such stockholder approval will be obtained
in the manner and to the degree required under Applicable Laws.


 




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