EXHIBIT
4.3


 


PEN
Inc.


 


2015
EQUITY INCENTIVE PLAN


 


1.
Purpose of the Plan. The purpose of this Plan is to permit equity compensation for those who provide services to the
Company and to encourage ownership in the Company by key personnel whose long-term service the Company considers essential to
its continued progress and, thereby, encourage recipients to act in the stockholders’ interest and share in the Company’s
success.


 


2.
Definitions. As used herein, the following definitions shall apply:


 


“Act”
shall mean the Securities Act of 1933, as amended.


 


“Administrator”
shall mean the Board, any Committees, or such delegates as shall be administering the Plan in accordance with Section 4 of the
Plan.


 


“Affiliate”
shall mean any entity that is directly or indirectly in control of or controlled by the Company, or any entity in which the Company
has a significant ownership interest as determined by the Administrator.


 


“Applicable
Laws” shall mean the requirements relating to the administration of stock plans under federal and state laws; any stock
exchange or quotation system on which the Company has listed or submitted for quotation the Common Stock to the extent provided
under the terms of the Company’s agreement with such exchange or quotation system.


 


“Award”
shall mean, individually or collectively, a grant under the Plan of an Option or other such Stock Award.


 


“Awardee”
shall mean a Service Provider who has been granted an Award under the Plan.


 


“Award
Agreement” shall mean an Option Agreement or Stock Award Agreement, which may be in written or electronic format, in such
form and with such terms as may be specified by the Administrator, evidencing the terms and conditions of an individual Award.
Each Award Agreement is subject to the terms and conditions of the Plan.


 


“Board”
shall mean the Board of Directors of the Company.


 


“Change
in Control” shall mean any of the following, unless the Administrator provides otherwise:


 


	 	(i)	any
    merger or consolidation in which the Company shall not be the surviving entity (or survives only as a subsidiary of another
    entity whose stockholders did not own all or substantially all of the Common Stock in substantially the same proportions as
    immediately before such transaction);
	 	 	 
	 	(ii)	the
    sale of all or substantially all of the Company’s assets to any other person or entity (other than a wholly-owned subsidiary
    of the Company);
	 	 	 
	 	(iii)	the
    acquisition of beneficial ownership of a controlling interest (including power to vote) in the outstanding shares of Common
    Stock by any person or entity (including a “group” as defined by or under Section 13(d)(3) of the Exchange Act);
	 	 	 
	 	(iv)	the
    dissolution or liquidation of the Company;
	 	 	 
	 	(v)	a
    contested election of Directors, as a result of which or in connection with which the persons who were Directors before such
    election or their nominees cease to constitute a majority of the Board; or
	 	 	 
	 	(vi)	any
    other event specified, at the time an Award is granted or thereafter, by the Board or a Committee.


 




    	 



     

    

 


Notwithstanding
the foregoing, the term “Change in Control” shall not include any underwritten public offering of Shares registered
under the Act.


 


“Code”
shall mean the Internal Revenue Code of 1986, as amended.


 


“Committee”
shall mean a committee of Directors appointed by the Board in accordance with Section 4 of the Plan.


 


“Common
Stock” shall mean the Class A common stock of the Company.


 


“Company”
shall mean PEN Inc., a Delaware corporation, or its successor.


 


“Consultant”
shall mean any natural person, other than an Employee or Director, who performs bona fide services for the Company or an Affiliate
as a consultant or advisor.


 


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


 


“Director”
shall mean a member of the Board.


 


“Disability”
shall mean permanent and total disability as defined in Section 22(e)(3) of the Code.


 


“Employee”
shall mean an employee of the Company or any Affiliate, and may include an Officer or Director. Within the limitations of Applicable
Law, the Administrator shall have the discretion to determine the effect upon an Award and upon an individual’s status as
an Employee in the case of (i) any individual who is classified by the Company or its Affiliate as leased from or otherwise employed
by a third party or as intermittent or temporary, even if any such classification is changed retroactively as a result of an audit,
litigation or otherwise; (ii) any leave of absence approved by the Company or an Affiliate; (iii) any transfer between locations
of employment with the Company or an Affiliate or between the Company and any Affiliate or between any Affiliates; (iv) any change
in the Awardee’s status from an employee to a Consultant or Director; and (v) an employee who, at the request of the Company
or an Affiliate, becomes employed by any partnership, joint venture, or corporation not meeting the requirements of an Affiliate
in which the Company or an Affiliate is a party.


 


“Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended.


 


“Fair
Market Value” shall mean, unless the Administrator determines otherwise, as of any date, the closing price for such Common
Stock as of such date (or if no sales were reported on such date, the closing price on the last preceding day for which a sale
was reported), as reported in such source as the Administrator shall determine.


 


“Grant
Date” shall mean the date upon which an Award is granted to an Awardee pursuant to this Plan.


 


“Incentive
Stock Option” shall mean an Option intended to qualify as an incentive stock option within the meaning of Section 422 of
the Code.


 


“Nonstatutory
Stock Option” shall mean an Option not intended to qualify as an Incentive Stock Option.


 


“Officer”
shall mean a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act.


 


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


 


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


 


“Plan”
shall mean this PEN Inc. 2015 Equity Incentive Plan.


 




    	 



     

    

 


“Qualifying
Performance Criteria” shall have the meaning set forth in Section 14(b) of the Plan.


 


“Related
Corporation” shall mean any parent or subsidiary (as those terms are defined in Section 424(e) and (f) of the Code) of the
Company.


 


“Service
Provider” shall mean an Employee, Officer, Director, or Consultant.


 


“Share”
shall mean a share of Common Stock, as adjusted in accordance with Section 13 of the Plan.


 


“Stock
Award” shall mean an award or issuance of Shares made under Section 11 of the Plan, the grant, issuance, retention, vesting,
and transferability of which is subject during specified periods to such conditions (including continued service or performance
conditions) and terms as are expressed in the agreement or other documents evidencing the Award (the “Stock Award Agreement”).


 


“Ten-Percent
Stockholder” shall mean the owner of stock (as determined under Section 424(d) of the Code) possessing more than 10% of
the total combined voting power of all classes of stock of the Company (or any Related Corporation).


 


“Termination
Date” shall mean the date of a Participant’s Termination of Service, as determined by the Administrator in its sole
discretion.


 


“Termination
of Service” shall mean ceasing to be a Service Provider. However, for Incentive Stock Option purposes, Termination of Service
will occur when the Awardee ceases to be an employee (as determined in accordance with Section 3401(c) of the Code and the regulations
promulgated thereunder) of the Company. The Administrator shall determine whether any corporate transaction, such as a sale or
spin-off of a division or business unit, or a joint venture, shall be deemed to result in a Termination of Service.


 


3.
Stock Subject to the Plan.


 


(a)
Aggregate Limit. The maximum aggregate number of Shares that may be issued under the Plan through Awards is 20,000,000
Shares. The limitations of this Section 3(a) shall be subject to the adjustments set forth in Section 13 of the Plan.


 


(b)
Reduction and Replenishment. Upon payment for Shares pursuant to the exercise of an Award, the number of Shares available
for issuance under the Plan shall be reduced only by the number of Shares actually issued in such payment. If any outstanding
Award expires or is terminated or canceled without having been exercised or settled in full, or if Shares acquired pursuant to
an Award subject to forfeiture or repurchase are forfeited or repurchased by the Company, the Shares allocable to the terminated
portion of such Award or such forfeited or repurchased Shares shall again be available to grant under the Plan. Notwithstanding
the foregoing, the aggregate number of shares of Common Stock that may be issued under the Plan upon the exercise of Incentive
Stock Options shall not be increased for restricted Shares that are forfeited or repurchased. Notwithstanding anything in the
Plan, or any Award Agreement to the contrary, Shares attributable to Awards transferred under any Award transfer program shall
not be again available for grant under the Plan. The Shares subject to the Plan may be either Shares reacquired by the Company,
including Shares purchased in the open market, or authorized but unissued Shares.


 


4.
Administration of the Plan.


 


(a)
Procedure.


 


(i)
Multiple Administrative Bodies. The Plan shall be administered by the Board or one or more Committees, including such delegates
as may be appointed under paragraph (a)(iv) of this Section 4.


 


(ii)
Section 162(m). To the extent that the Administrator determines it to be desirable to qualify Awards granted hereunder
as “performance-based compensation” within the meaning of Section 162(m) of the Code, Awards to “covered employees”
within the meaning of Section 162(m) of the Code or Employees that the Committee determines may be “covered employees”
in the future shall be made by a Committee of two or more “outside directors” within the meaning of Section 162(m)
of the Code.


 




    	 



     

    

 


(iii)
Rule 16b-3. To the extent desirable to qualify transactions hereunder as exempt under Rule 16b-3 promulgated under the
Exchange Act (“Rule 16b-3”), Awards to Officers and Directors shall be made in such a manner to satisfy the
requirement for exemption under Rule 16b-3.


 


(iv)
Other Administration. The Board or a Committee may delegate to an authorized Officer or Officers of the Company the power
to approve Awards to persons eligible to receive Awards under the Plan who are not (A) subject to Section 16 of the Exchange Act;
or (B) at the time of such approval, “covered employees” under Section 162(m) of the Code.


 


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


 


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


 


(i)
to select the Service Providers of the Company or its Affiliates to whom Awards are to be granted hereunder;


 


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


 


(iii)
to determine the type of Award to be granted to the selected Service Provider;


 


(iv)
to approve the forms of Award Agreements for use under the Plan;


 


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


 


(vi)
to correct administrative errors;


 


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


 


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


 


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


 


(x)
to modify or amend each Award, including the acceleration of vesting, exercisability, or both; except that any modification
or amendment of an Award is subject to Section 14(b) of the Plan and may not materially impair any outstanding Award unless agreed
to by the Participant;


 




    	 



     

    

 


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


 


(xii)
to authorize conversion or substitution under the Plan of any or all stock options, stock appreciation rights, or other stock
awards held by service providers of an entity acquired by the Company (the “Conversion Awards”). Any conversion
or substitution shall be effective as of the close of the merger or acquisition. The Conversion Awards may be Nonstatutory Stock
Options or Incentive Stock Options, as determined by the Administrator, with respect to options granted by the acquired entity.
Unless otherwise determined by the Administrator at the time of conversion or substitution, all Conversion Awards shall have the
same terms and conditions as Awards generally granted by the Company under the Plan;


 


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


 


(xiv)
to determine whether Awards will be settled in Shares, cash, or in any combination thereof;


 


(xv)
to determine whether to provide for the right to receive dividends or dividend equivalents;


 


(xvi)
to establish a program whereby Service Providers designated by the Administrator can reduce compensation otherwise payable in
cash in exchange for Awards under the Plan;


 


(xvii)
to impose such restrictions, conditions, or limitations as it determines appropriate as to the timing and manner of any resales
by a Participant or other subsequent transfers by the Participant of any Shares issued as a result of or under an Award, including
(A) restrictions under an insider trading policy, and (B) restrictions as to the use of a specified brokerage firm for such resales
or other transfers;


 


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


 


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


 


(c)
Effect of Administrator’s Decision. All decisions, determinations and interpretations by the Administrator regarding
the Plan, any rules and regulations under the Plan and the terms and conditions of any Award granted hereunder, shall be final
and binding on all Participants. The Administrator shall consider such factors as it deems relevant, in its sole and absolute
discretion, to making such decisions, determinations and interpretations, including the recommendations or advice of any officer
or other employee of the Company and such attorneys, consultants and accountants as it may select.


 


5.
Eligibility. Awards may be granted to Service Providers of the Company or any of its Affiliates.


 


6.
Effective Date and Term of the Plan. The Plan shall become effective upon its adoption by the Board. Options and Stock
Awards may be granted immediately thereafter. The Plan shall continue in effect for a term of TEN (10) years from the date of
the Plan’s adoption by the Board unless terminated earlier under Section 14.


 


7.
Term of Award. The term of each Award shall be determined by the Administrator and stated in the Award Agreement. In
the case of an Option, the term shall be TEN (10) years from the Grant Date or such shorter term as may be stated in the Award
Agreement.


 




    	 



     

    

 


8.
Options. The Administrator may grant an Option or provide for the grant of an Option, from time to time in the discretion
of the Administrator or automatically upon the occurrence of specified events, including the achievement of performance goals,
and for the satisfaction of an event or condition within the control of the Awardee or within the control of others.


 


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


 


(b)
Exercise Price. The per share exercise price for the Shares to be issued pursuant to exercise of an Option shall be determined
by the Administrator, subject to the following:


 


(i)
In the case of an Incentive Stock Option, the per Share exercise price shall be no less than 100% of the Fair Market Value
per Share on the Grant Date. Notwithstanding the foregoing, if any Incentive Stock Option is granted to a Ten-Percent Stockholder,
then the exercise price shall not be less than 110% of the Fair Market Value of a share of Common Stock on the Grant Date.


 


(ii)
In the case of a Nonstatutory Stock Option, the per Share exercise price shall be no less than 100% of the Fair Market Value per
Share on the Grant Date. The per Share exercise price may also vary according to a predetermined formula; so long as, on the Grant
Date, the exercise price never falls below 100% of the Fair Market Value per Share.


 


(iii)
Notwithstanding the foregoing, at the Administrator’s discretion, Conversion Awards may be granted in substitution or conversion
of options of an acquired entity, with a per Share exercise price of less than 100% of the Fair Market Value per Share on the
date of such substitution or conversion.


 


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


 


(d)
Form of Consideration. The Administrator shall determine the acceptable form of consideration for exercising an Option,
including the method of payment, either through the terms of the Option Agreement or at the time of exercise of an Option. The
consideration, determined by the Administrator (or pursuant to authority expressly delegated by the Board, a Committee, or other
person), and in the form and amount required by applicable law, shall be actually received before issuing any Shares pursuant
to the Plan; which consideration shall have a value, as determined by the Board, not less than the par value of such Shares. Acceptable
forms of consideration may include:


 


(i)
cash;


 


(ii)
check or wire transfer;


 


(iii)
subject to any conditions or limitations established by the Administrator, other Shares that have a Fair Market Value on the date
of surrender or attestation that does not exceed the aggregate exercise price of the Shares as to which said Option shall be exercised;


 


(iv)
consideration received by the Company under a broker-assisted sale and remittance program acceptable to the Administrator to the
extent that this procedure would not violate Section 402 of the Sarbanes-Oxley Act of 2002, as amended;


 


(v)
cashless exercise, subject to any conditions or limitations established by the Administrator;


 


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


 


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


 




    	 



     

    

 


9.
Incentive Stock Option Limitations.


 


(a)
Eligibility. Only employees (as determined in accordance with Section 3401(c) of the Code and the regulations promulgated
thereunder) of the Company may be granted Incentive Stock Options.


 


(b)
$100,000 Limitation. Notwithstanding the designation “Incentive Stock Option” in an Option Agreement, if the
aggregate Fair Market Value of the Shares with respect to which Incentive Stock Options are exercisable for the first time by
the Awardee during any calendar year (under all plans of the Company) exceeds $100,000, then the portion of such Options that
exceeds $100,000 shall be treated as Nonstatutory Stock Options. An Incentive Stock Option is considered to be first exercisable
during a calendar year if the Incentive Stock Option will become exercisable at any time during the year, assuming that any condition
on the Awardee’s ability to exercise the Incentive Stock Option related to the performance of services is satisfied. If
the Awardee’s ability to exercise the Incentive Stock Option in the year is subject to an acceleration provision, then the
Incentive Stock Option is considered first exercisable in the calendar year in which the acceleration provision is triggered.
For purposes of this Section 9(b), Incentive Stock Options shall be taken into account in the order in which they were granted.
However, because an acceleration provision is not taken into account before the trigger occurs, an Incentive Stock Option that
becomes exercisable for the first time during a calendar year by operation of such provision does not affect the application of
the $100,000 limitation with respect to any Incentive Stock Option (or portion thereof) exercised before such acceleration. The
Fair Market Value of the Shares shall be determined as of the Grant Date.


 


(c)
Leave of Absence. For purposes of Incentive Stock Options, no leave of absence may exceed three months, unless the right
to reemployment upon expiration of such leave is provided by statute or contract. If the period of leave exceeds three months
and the Awardee’s right to reemployment is not provided by statute or contract, the Awardee’s employment with the
Company shall be deemed to terminate on the first day immediately following such three-month period, and any Incentive Stock Option
granted to the Awardee shall cease to be treated as an Incentive Stock Option and shall terminate upon the expiration of the three-month
period starting on the date the employment relationship is deemed terminated.


 


(d)
Transferability. The Option Agreement must provide that an Incentive Stock Option cannot be transferable by the Awardee
otherwise than by will or the laws of descent and distribution, and, during the lifetime of such Awardee, must not be exercisable
by any other person. Notwithstanding the foregoing, the Administrator, in its sole discretion, may allow the Awardee to transfer
his or her Incentive Stock Option to a trust where under Section 671 of the Code and other Applicable Law, the Awardee is considered
the sole beneficial owner of the Option while it is held in the trust. If the terms of an Incentive Stock Option are amended to
permit transferability, the Option will be treated for tax purposes as a Nonstatutory Stock Option.


 


(e)
Exercise Price. The per Share exercise price of an Incentive Stock Option shall be determined by the Administrator in accordance
with Section 8(b)(i) of the Plan.


 


(f)
Ten-Percent Stockholder. If any Incentive Stock Option is granted to a Ten-Percent Stockholder, then the Option term shall
not exceed FIVE (5) years measured from the date of grant of such Option.


 


(g)
Other Terms. Option Agreements evidencing Incentive Stock Options shall contain such other terms and conditions as may
be necessary to qualify as Incentive Stock Options, to the extent determined desirable by the Administrator, under the applicable
provisions of Section 422 of the Code.


 




    	 



     

    

 


10.
Exercise of Option.


 


(a)
Procedure for Exercise; Rights as a Stockholder.


 


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


 


(ii)
An Option shall be deemed exercised when the Company receives (A) written or electronic notice of exercise (in accordance with
the Award Agreement) from the person entitled to exercise the Option; (B) full payment for the Shares with respect to which the
related Option is exercised; and (C) with respect to Nonstatutory Stock Options, payment of all applicable withholding taxes.


 


(iii)
Shares issued upon exercise of an Option shall be issued in the name of the Participant or, if requested by the Participant, in
the name of the Participant and his or her spouse. Unless provided otherwise by the Administrator or pursuant to this Plan, until
the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent
of the Company), no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Shares
subject to an Option, notwithstanding the exercise of the Option.


 


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


 


(b)
Effect of Termination of Service on Options.


 


(i)
Generally. Unless otherwise provided for by the Administrator, if a Participant ceases to be a Service Provider, other
than upon the Participant’s death or Disability, the Participant may exercise his or her Option within such period as is
specified in the Award Agreement to the extent that the Option is vested on the Termination Date (but in no event later than the
expiration of the term of such Option as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement,
the vested portion of the Option will remain exercisable for THREE (3) months following the Participant’s Termination Date.
Unless otherwise provided by the Administrator, if on the Termination Date the Participant is not vested as to his or her entire
Option, the Shares covered by the unvested portion of the Option will automatically revert to the Plan. If after the Termination
of Service the Participant does not exercise his or her Option within the time specified by the Administrator, the Option will
automatically terminate, and the Shares covered by such Option will revert to the Plan.


 


(ii)
Disability of Awardee. Unless otherwise provided for by the Administrator, if a Participant ceases to be a Service Provider
as a result of the Participant’s Disability, the Participant may exercise his or her Option within such period as is specified
in the Award Agreement to the extent the Option is vested on the Termination Date (but in no event later than the expiration of
the term of such Option as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the Option
will remain exercisable for twelve months following the Participant’s Termination Date. Unless otherwise provided by the
Administrator, if at the time of Disability the Participant is not vested as to his or her entire Option, the Shares covered by
the unvested portion of the Option will automatically revert to the Plan. If the Option is not so exercised within the time specified
herein, the Option will terminate, and the Shares covered by such Option will automatically revert to the Plan.


 


(iii)
Death of Awardee. Unless otherwise provided for by the Administrator, if a Participant dies while a Service Provider, the
Option may be exercised following the Participant’s death within such period as is specified in the Award Agreement to the
extent that the Option is vested on the date of death (but in no event may the Option be exercised later than the expiration of
the term of such Option as set forth in the Award Agreement), by the Participant’s designated beneficiary, so long as such
beneficiary has been designated before the Participant’s death in a form acceptable to the Administrator. If no such beneficiary
has been designated by the Participant, then such Option may be exercised by the personal representative of the Participant’s
estate or by the person or persons to whom the Option is transferred pursuant to the Participant’s will or in accordance
with the laws of descent and distribution. In the absence of a specified time in the Award Agreement, the Option will remain exercisable
for TWELVE (12) months following Participant’s death. Unless otherwise provided by the Administrator, if at the time of
death Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will
revert to the Plan. If the Option is not so exercised within the time specified herein, the Option will terminate, and the Shares
covered by such Option will revert to the Plan.


 






    	 



     

    

 


11.
Stock Awards.


 


(a)
Stock Award Agreement. Each Stock Award Agreement shall contain provisions regarding (i) the number of Shares subject to
such Stock Award or a formula for determining such number; (ii) the purchase price, if any, of the Shares, and the means of payment
for the Shares; (iii) the performance criteria, if any, and level of achievement versus these criteria that shall determine the
number of Shares granted, issued, retained, or vested, as applicable; (iv) such terms and conditions on the grant, issuance, vesting,
or forfeiture of the Shares, as applicable, as may be determined from time to time by the Administrator; (v) restrictions on the
transferability of the Stock Award; and (vi) such further terms and conditions in each case not inconsistent with this Plan as
may be determined from time to time by the Administrator.


 


(b)
Restrictions and Performance Criteria. The grant, issuance, retention, and vesting of each Stock Award may be subject to
such performance criteria and level of achievement versus these criteria as the Administrator shall determine, which criteria
may be based on financial performance, personal performance evaluations, or completion of service by the Awardee.


 


Notwithstanding
anything to the contrary herein, the performance criteria for any Stock Award that is intended to satisfy the requirements for
“performance-based compensation” under Section 162(m) of the Code shall be established by the Administrator based
on one or more Qualifying Performance Criteria selected by the Administrator and specified in writing.


 


(c)
Forfeiture. Unless otherwise provided for by the Administrator, upon the Awardee’s Termination of Service, the unvested
Stock Award and the Shares subject thereto shall be forfeited, except if the Participant purchased any Shares pursuant to such
Stock Award, the Company shall have a right to repurchase the unvested portion of such Shares at the original price paid by the
Participant.


 


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


 


12.
Other Provisions Applicable to Awards.


 


(a)
Non-Transferability of Awards. Unless determined otherwise by the Administrator, an Award may not be sold, pledged, assigned,
hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent and distribution, and may
be exercised, during the lifetime of the Participant, only by the Participant. If the Administrator makes an Award transferable,
either at the time of grant or thereafter, such Award shall contain such additional terms and conditions as the Administrator
deems appropriate, and any transferee shall be bound by such terms upon acceptance of such transfer.


 


(b)
Qualifying Performance Criteria. For purposes of this Plan, the term “Qualifying Performance Criteria”
shall mean any one or more of the following performance criteria, applied to either the Company as a whole or to a business unit,
Affiliate, or business segment, either individually, alternatively, or in any combination, and measured either annually or cumulatively
over a period of years, on an absolute basis or relative to a pre-established target, to previous years’ results or to a
designated comparison group, in each case as specified in the Award by the Committee: (i) cash flow, (ii) earnings (including
gross margin, earnings before interest and taxes, earnings before taxes, and net earnings), (iii) earnings per share, (iv) growth
in earnings or earnings per share, (v) stock price, (vi) return on equity or average stockholders’ equity, (vii) total stockholder
return, (viii) return on capital, (ix) return on assets or net assets, (x) return on investment, (xi) revenue, (xii) income or
net income, (xiii) operating income or net operating income, (xiv) operating profit or net operating profit, (xv) operating margin,
(xvi) return on operating revenue, (xvii) market share, (xviii) contract awards or backlog, (xix) overhead or other expense reduction,
(xx) growth in stockholder value relative to the moving average of the S&P 500 Index or a peer group index, (xxi) credit rating,
(xxii) strategic plan development and implementation, (xxiii) improvement in workforce diversity, (xxiv) EBITDA, and (xxv) any
other similar criteria.


 




    	 



     

    

 


(c)
Certification. Before payment of any compensation under an Award intended to qualify as “performance-based compensation”
under Section 162(m) of the Code, the Committee shall certify the extent to which any Qualifying Performance Criteria and any
other material terms under such Award have been satisfied (other than in cases where such relate solely to the increase in the
value of the Common Stock).


 


(d)
Discretionary Adjustments Pursuant to Section 162(m). Notwithstanding satisfaction or completion of any Qualifying Performance
Criteria, to the extent specified at the time of grant of an Award to “covered employees” within the meaning of Section
162(m) of the Code, the number of Shares, Options or other benefits granted, issued, retained, or vested under an Award on account
of satisfaction of such Qualifying Performance Criteria may be reduced by the Committee on the basis of such further considerations
as the Committee in its sole discretion shall determine.


 


(e)
Section 409A. Notwithstanding anything in the Plan to the contrary, it is the Company’s intent that all Awards granted
under this Plan comply with Section 409A of the Code, and each Award shall be interpreted in a manner consistent with that intention.


 


13.
Adjustments upon Changes in Capitalization, Dissolution, Merger or Asset Sale.


 


(a)
Changes in Capitalization. 


 


(i)
The limitations set forth in Section 3, the number and kind of Shares covered by each outstanding Award, and the price per Share
(but not the total price) subject to each outstanding Award shall be proportionally adjusted to prevent dilution or enlargement
of rights under the Plan for any change in the outstanding Common Stock subject to the Plan, or subject to any Award, resulting
from any stock splits, combination or exchange of Shares, consolidation, spin-off or recapitalization of Shares or any capital
adjustment or transaction similar to the foregoing or any distribution to holders of Common Stock other than regular cash dividends.


 


(ii)
The Administrator shall make such adjustment in such manner as it deems equitable and appropriate, subject to compliance with
Applicable Laws. Any determination, substitution or adjustment made by the Administrator under this Section shall be conclusive
and binding on all persons. The conversion of any convertible securities of the Company shall not be treated as a transaction
requiring any adjustment under this Section. Except as expressly stated in this Section 13, no issuance by the Company of shares
of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason
thereof shall be made with respect to, the number or price of Shares subject to an Award.


 


(b)
Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Administrator shall
notify each Participant as soon as practicable before the effective date of such proposed transaction. The Administrator in its
discretion may provide for an Option to be fully vested and exercisable until ten days before such proposed transaction. In addition,
the Administrator may provide that any restrictions on any Award shall lapse before the proposed transaction, if the proposed
dissolution or liquidation takes place at the time and in the manner contemplated. To the extent it has not been previously exercised,
an Award will terminate immediately before the consummation of such proposed transaction.


 


(c)
Change in Control. If there is a Change in Control of the Company, as determined by the Board or a Committee, the Board
or Committee, or board of directors of any surviving entity or acquiring entity may, in its discretion, (i) provide for the assumption,
continuation or substitution (including an award to acquire substantially the same type of consideration paid to the stockholders
in the transaction in which the Change in Control occurs) of, or adjustment to, all or any part of the Awards; (ii) accelerate
the vesting of all or any part of the Options and SARs and terminate any restrictions on all or any part of the Stock Awards or
Cash Awards; (iii) provide for the cancellation of all or any part of the Awards for a cash payment to the Participants; and (iv)
provide for the cancellation of all or any part of the Awards as of the closing of the Change in Control; so long as, with respect
to clause (iv) the Participants are notified that they must exercise or redeem their Awards (including, at the discretion of the
Board or Committee, any unvested portion of such Award) at or before the closing of the Change in Control.


 




    	 



     

    

 


14.
Amendment and Termination of the Plan.


 


(a)
Amendment and Termination. The Administrator may amend, alter, or discontinue the Plan or any Award Agreement. Termination
of the Plan shall not affect the Administrator’s ability to exercise the powers granted to it hereunder with respect to
Awards granted under the Plan before the date of such termination.


 


(b)
Participant Consent. No amendment, suspension, or termination of the Plan shall materially impair the rights of any Award,
unless agreed otherwise between the Participant and the Administrator


 


(c)
Effect of the Plan on Other Arrangements. Neither the adoption of the Plan by the Board or a Committee nor the submission
of the Plan to the stockholders of the Company for approval shall be construed as creating any limitations on the power of the
Board or any Committee to adopt such other incentive arrangements as it or they may deem desirable, including the granting of
restricted stock or stock options otherwise than under the Plan, and such arrangements may be either generally applicable or applicable
only in specific cases.


 


15.
Designation of Beneficiary.


 


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


 


(b)
The Awardee may change such designation of beneficiary at any time by written notice. If an Awardee dies and no beneficiary is
validly designated under the Plan who is living at the time of such Awardee’s death, the Company shall allow the executor
or administrator of the estate of the Awardee to exercise the Award, or if no such executor or administrator has been appointed
(to the knowledge of the Company), the Company, in its discretion, may allow the spouse or one or more dependents or relatives
of the Awardee to exercise the Award to the extent permissible under Applicable Law.


 


16.
No Right to Awards or to Service. No person shall have any claim or right to be granted an Award and the grant of any
Award shall not be construed as giving an Awardee the right to continue in the service of the Company or its Affiliates. 


 


17.
Preemptive Rights. No Shares will be issued under the Plan in violation of any preemptive rights held by any stockholder
of the Company.


 


18.
Legal Compliance. No Share will be issued pursuant to an Award under the Plan unless the issuance and delivery of such
Share, as well as the exercise of such Award, if applicable, will comply with Applicable Laws. Issuance of Shares under the Plan
shall be subject to the approval of counsel for the Company with respect to such compliance. Notwithstanding anything in the Plan
to the contrary, the Plan is intended to comply with the requirements of Section 409A of the Code and shall be interpreted in
a manner consistent with that intention.


 


19.
Inability to Obtain Authority. To the extent the Company is unable to or the Administrator deems that it is not feasible
to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to
be necessary to the lawful issuance and sale of any Shares hereunder, the Company shall be relieved of any liability with respect
to the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained.


 


20.
Reservation of Shares. The Company, during the term of this Plan, will at all times reserve and keep available such
number of Shares as shall be sufficient to satisfy the requirements of the Plan.


 


21.
Notice. Any written notice to the Company required by any provisions of this Plan shall be addressed to the Secretary
of the Company and shall be effective when received.


 




    	 



     

    

 


22.
Governing Law; Interpretation of Plan and Awards.


 


(a)
This Plan and all determinations made and actions taken pursuant hereto shall be governed by the substantive laws, but not the
choice of law rules, of the State of Arizona.


 


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


 


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


 


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


 


(e)
All questions arising under the Plan or under any Award shall be decided by the Administrator in its total and absolute discretion.
If the Participant believes that a decision by the Administrator with respect to such person was arbitrary or capricious, the
Participant may request arbitration with respect to such decision. The review by the arbitrator shall be limited to determining
whether the Administrator’s decision was arbitrary or capricious. This arbitration shall be the sole and exclusive review
permitted of the Administrator’s decision, and the Awardee shall as a condition to the receipt of an Award be deemed to
waive explicitly any right to judicial review.


 


23.
Limitation on Liability. The Company and any Affiliate or Related Corporation that is in existence or hereafter comes
into existence shall not be liable to a Participant, an Employee, an Awardee, or any other persons as to:


 


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


 


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


 


24.
Unfunded Plan. Insofar as it provides for Awards, the Plan shall be unfunded. Although bookkeeping accounts may be
established with respect to Awardees who are granted Stock Awards under this Plan, any such accounts will be used merely as a
bookkeeping convenience. The Company shall not be required to segregate any assets that may at any time be represented by Awards,
nor shall this Plan be construed as providing for such segregation, nor shall the Company or the Administrator be deemed a trustee
of stock or cash to be awarded under the Plan. Any liability of the Company to any Participant with respect to an Award shall
be based solely upon any contractual obligations that may be created by the Plan; no such obligation of the Company shall be deemed
secured by any pledge or other encumbrance on any property of the Company. Neither the Company nor the Administrator shall be
required to give any security or bond for the performance of any obligation that may be created by this Plan.


 


Adopted
11.30.15