Exhibit 10.1


 


AGORA DIGITAL HOLDINGS, INC.


2021 EQUITY INCENTIVE PLAN


 


1. Scope of Plan; Definitions.


 


(a) This 2021 Equity Incentive
Plan (the “Plan”) is intended to advance the interests of Agora Digital Holdings, Inc. (the “Company”) and its
Related Corporations by enhancing the ability of the Company to attract and retain qualified employees, consultants, Officers and directors,
by creating incentives and rewards for their contributions to the success of the Company and its Related Corporations. This Plan will
provide to (a) Officers and other employees of the Company and its Related Corporations opportunities to purchase common stock, par value
$0.001 (“Common Stock”) of the Company pursuant to Options granted hereunder which qualify as incentive stock options (“ISOs”)
under Section 422(b) of the Internal Revenue Code of 1986 (the “Code”), (b) directors, Officers, employees and consultants
of the Company and Related Corporations opportunities to purchase Common Stock of the Company pursuant to options granted hereunder which
do not qualify as ISOs (“Non-Qualified Options”); (c) directors, Officers, employees and consultants of the Company and Related
Corporations opportunities to receive shares of Common Stock of the Company which normally are subject to restrictions on sale (“Restricted
Stock”); (d) directors, Officers, employees and consultants of the Company and Related Corporations opportunities to receive grants
of stock appreciation rights (“SARs”); and (e) directors, Officers, employees and consultants of the Company and Related Corporations
opportunities to receive grants of restricted stock units (“RSUs”). ISOs and Non-Qualified Options are referred to hereafter
as “Options.” Options, Restricted Stock, RSUs and SARs are sometimes referred to hereafter collectively as “Stock Rights.”
Any of the Options and/or Stock Rights may in the Board of Directors’ or Compensation Committee’s discretion be issued in
tandem to one or more other Options and/or Stock Rights to the extent permitted by law.


 


(b) For purposes of the Plan,
capitalized words and terms shall have the following meaning:


 


“Board” means the
board of directors of the Company.


 


“Chairman” means
the chairman of the Board.


 


“Change of Control”
means the occurrence of any of the following events: (i) the consummation of the sale or disposition by the Company of all or substantially
all of the Company’s assets in a transaction which requires shareholder approval under applicable state law; or (ii) the consummation
of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the
voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity or its parent) at least 50% of the total voting power represented by the
voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation.


 


“Code” shall have
the meaning given to it in Section 1(a).


 


“Common Stock” shall
have the meaning given to it in Section 1(a).


 


“Company” shall
have the meaning given to it in Section 1(a).


 






     


     


    

 


“Compensation Committee”
means the compensation committee of the Board, if any, which shall consist of two or more members of the Board, each of whom shall be
both an “outside director” within the meaning of Section 162(m) of the Code and a “non-employee director” within
the meaning of Rule 16b-3.  All references in this Plan to the Compensation Committee shall mean the Board when (i) there is no Compensation
Committee or (ii) the Board has retained the power to administer this Plan.


 


“Disability” means
“permanent and total disability” as defined in Section 22(e)(3) of the Code or successor statute.


 


“Disqualifying Disposition”
means any disposition (including any sale) of Common Stock underlying an ISO before the later of (i) two years after the date of employee
was granted the ISO or (ii) one year after the date the employee acquired Common Stock by exercising the ISO.


 


“Exchange Act” shall
mean the Securities Exchange Act of 1934.


 


“Fair Market Value”
shall be determined as of the last Trading Day before the date a Stock Right is granted and shall mean:


 


(1)
the closing price on the principal market if the Common Stock is listed on a national securities exchange or the OTCQB or OTCQX.


 


(2)
if the Company’s shares are not listed on a national securities exchange or the OTCQB or OTCQX, then the closing price if reported
or the average bid and asked price for the Company’s shares as published by OTC Markets Group, Inc.;


 


(3)
if there are no prices available under clauses (1) or (2), then Fair Market Value shall be based upon the average closing bid and asked
price as determined following a polling of all dealers making a market in the Company’s Common Stock; or


 


(4) if
there is no regularly established trading market for the Company’s Common Stock or if the Company’s Common Stock is listed,
quoted or reported under clauses (1) or (2) but it trades sporadically rather than every day, the Fair Market Value shall be established
by the Board or the Compensation Committee taking into consideration all relevant factors including the most recent price at which the
Company’s Common Stock was sold.


 


“ISO” shall have
the meaning given to it in Section 1(a).


 


“Non-Qualified Options”
shall have the meaning given to it in Section 1(a).


 


“Officers” means
a person who is an executive officer of the Company and is required to file ownership reports under Section 16(a) of the Exchange Act.


 


“Options” shall
have the meaning given to it in Section 1(a).


 






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“Plan” shall have
the meaning given to it in Section 1(a).


 


“Related Corporations”
shall mean a corporation which is a subsidiary corporation with respect to the Company within the meaning of Section 424(f) of the Code.


 


“Restricted Stock”
shall have the meaning contained in Section 1(a).


 


“RSU” shall have
the meaning given to it in Section 1(a).


 


“SAR” shall have
the meaning given to it in Section 1(a).


 


“Securities Act”
means the Securities Act of 1933.


 


“Stock Rights” shall
have the meaning given to it in Section 1(a).


 


“Trading Day” shall
mean a day on which The Nasdaq Stock Market LLC is open for business.


 


This Plan is intended to comply
in all respects with Rule 16b-3 (“Rule 16b-3”) and its successor rules as promulgated under Section 16(b) of the Exchange
Act for participants who are subject to Section 16 of the Exchange Act. To the extent any provision of the Plan or action by the Plan
administrators fails to so comply, it shall be deemed null and void to the extent permitted by law and deemed advisable by the Plan administrators. Provided, however,
such exercise of discretion by the Plan administrators shall not interfere with the contract rights of any grantee. In the event that
any interpretation or construction of the Plan is required, it shall be interpreted and construed in order to ensure, to the maximum extent
permissible by law, that such grantee does not violate the short-swing profit provisions of Section 16(b) of the Exchange Act and that
any exemption available under Rule 16b-3 or other rule is available.


 


2. Administration of the
Plan.


 


(a) The Plan may be administered
by the entire Board or by the Compensation Committee. Once appointed, the Compensation Committee shall continue to serve until otherwise
directed by the Board. A majority of the members of the Compensation Committee shall constitute a quorum, and all determinations of the
Compensation Committee shall be made by the majority of its members present at a meeting. Any determination of the Compensation Committee
under the Plan may be made without notice or meeting of the Compensation Committee by a writing signed by all of the Compensation Committee
members. Subject to ratification of the grant of each Stock Right by the Board (but only if so required by applicable state law), and
subject to the terms of the Plan, the Compensation Committee shall have the authority to (i) determine the employees of the Company and
Related Corporations (from among the class of employees eligible under Section 3 to receive ISOs) to whom ISOs may be granted, and to
determine (from among the class of individuals and entities eligible under Section 3 to receive Non-Qualified Options, Restricted Stock,
RSUs and SARs) to whom Non-Qualified Options, Restricted Stock, RSUs and SARs may be granted; (ii) determine when Stock Rights may be
granted; (iii) determine the exercise prices of Stock Rights other than Restricted Stock and RSUs, which shall not be less than the Fair
Market Value; (iv) determine whether each Option granted shall be an ISO or a Non-Qualified Option; (v) determine when Stock Rights shall
become exercisable, the duration of the exercise period and when each Stock Right shall vest; (vi) determine whether restrictions such
as repurchase options are to be imposed on shares subject to or issued in connection with Stock Rights, and the nature of such restrictions,
if any, and (vii) interpret the Plan and promulgate and rescind rules and regulations relating to it. The interpretation and construction
by the Compensation Committee of any provisions of the Plan or of any Stock Right granted under it shall be final, binding and conclusive
unless otherwise determined by the Board. The Compensation Committee may from time to time adopt such rules and regulations for carrying
out the Plan as it may deem best.


 






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No members of the Compensation
Committee or the Board shall be liable for any action or determination made in good faith with respect to the Plan or any Stock Right
granted under it. No member of the Compensation Committee or the Board shall be liable for any act or omission of any other member of
the Compensation Committee or the Board or for any act or omission on his own part, including but not limited to the exercise of any power
and discretion given to him under the Plan, except those resulting from his own gross negligence or willful misconduct.


 


(b) The Compensation Committee
may select one of its members as its chairman and shall hold meetings at such time and places as it may determine. All references in this
Plan to the Compensation Committee shall mean the Board if no Compensation Committee has been appointed. From time to time the Board may
increase the size of the Compensation Committee and appoint additional members thereof, remove members (with or without cause) and appoint
new members in substitution therefor, fill vacancies however caused or remove all members of the Compensation Committee and thereafter
directly administer the Plan.


 


(c) Stock Rights may be granted
to members of the Board, whether such grants are in their capacity as directors, Officers or consultants. All grants of Stock Rights to
members of the Board shall in all other respects be made in accordance with the provisions of this Plan applicable to other eligible persons.
Members of the Board who are either (i) eligible for Stock Rights pursuant to the Plan or (ii) have been granted Stock Rights may vote
on any matters affecting the administration of the Plan or the grant of any Stock Rights pursuant to the Plan.


 


(d) In addition to such other
rights of indemnification as he or she may have as a member of the Board, and with respect to administration of the Plan and the granting
of Stock Rights under it, each member of the Board and of the Compensation Committee shall be entitled without further act on his part
to indemnification from the Company for all expenses (including advances of litigation expenses, the amount of judgment and the amount
of approved settlements made with a view to the curtailment of costs of litigation) reasonably incurred by him in connection with or arising
out of any action, suit or proceeding, including any appeal thereof, with respect to the administration of the Plan or the granting of
Stock Rights under it in which he may be involved by reason of his being or having been a member of the Board or the Compensation Committee,
whether or not he continues to be such member of the Board or the Compensation Committee at the time of the incurring of such expenses; provided, however,
that such indemnity shall be subject to the limitations contained in any Indemnification Agreement between the Company and the Board member
or Officer. The foregoing right of indemnification shall inure to the benefit of the heirs, executors or administrators of each such member
of the Board or the Compensation Committee and shall be in addition to all other rights to which such member of the Board or the Compensation
Committee would be entitled to as a matter of law, contract or otherwise.


 


(e) The Board may delegate the
powers to grant Stock Rights to Officers to the extent permitted by the laws of the Company’s state of incorporation.


 






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3. Eligible Employees and
Others.  ISOs may be granted to any employee of the Company or any Related Corporation. Those Officers and directors of the Company
who are not employees may not be granted ISOs under the Plan. Subject to compliance with Rule 16b-3 and other applicable securities laws,
Non-Qualified Options, Restricted Stock, RSUs and SARs may be granted to any director (whether or not an employee), Officers, employees
or consultants of the Company or any Related Corporation. The Compensation Committee may take into consideration a recipient’s individual
circumstances in determining whether to grant an ISO, a Non-Qualified Option, Restricted Stock, RSUs or a SAR. Granting of any Stock Right
to any individual or entity shall neither entitle that individual or entity to, nor disqualify him from participation in, any other grant
of Stock Rights.


 


4. Common Stock. The
Common Stock subject to Stock Rights shall be authorized but unissued shares of Common Stock, or shares of Common Stock reacquired by
the Company in any manner, including purchase, forfeiture or otherwise. The aggregate number of shares of Common Stock which may be issued
pursuant to the Plan is 5,000,000, less any Stock Rights previously granted or exercised subject to adjustment as provided in Section
14. Any such shares may be issued under ISOs, Non-Qualified Options, Restricted Stock, RSUs or SARs, so long as the number of shares so
issued does not exceed the limitations in this Section. Subject to adjustment in accordance with Section 14, no more than 5,000,000 shares
of Common Stock may be issued in the aggregate pursuant to the exercise of ISOs. If any Stock Rights granted under the Plan shall expire
or terminate for any reason without having been exercised in full or shall cease for any reason to be exercisable in whole or in part,
or if the Company shall reacquire any unvested shares, the unpurchased shares subject to such Stock Rights and any unvested shares so
reacquired by the Company shall again be available for grants under the Plan. For the avoidance of doubt, in the event that (i) the payment
of the exercise price of any Stock Right, or (ii) the satisfaction of any tax withholding obligations arising from any Stock Right is
made by withholding of shares of Common Stock by the Company, the shares so withheld shall again become available for grants under the
Plan.


 


5. Granting of Stock Rights.


 


(a) The date of grant of a Stock
Right under the Plan will be the date specified by the Board or Compensation Committee at the time it grants the Stock Right; provided, however,
that such date shall not be prior to the date on which the Board or Compensation Committee acts to approve the grant. The Board or Compensation
Committee shall have the right, with the consent of the optionee, to convert an ISO granted under the Plan to a Non-Qualified Option pursuant
to Section 17.


 


(b) The Board or Compensation
Committee shall grant Stock Rights to participants that it, in its sole discretion, selects. Stock Rights shall be granted on such terms
as the Board or Compensation Committee shall determine except that ISOs shall be granted on terms that comply with the Code and regulations
thereunder.


 






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(c) A SAR entitles the holder
to receive, as designated by the Board or Compensation Committee, cash or shares of Common Stock, value equal to (or otherwise based on)
the excess of: (a) the Fair Market Value of a specified number of shares of Common Stock at the time of exercise over (b) an exercise
price established by the Board or Compensation Committee. The exercise price of each SAR granted under this Plan shall be established
by the Compensation Committee or shall be determined by a method established by the Board or Compensation Committee at the time the SAR
is granted, provided the exercise price shall not be less than 100% of the Fair Market Value of a share of Common Stock on the date of
the grant of the SAR, or such higher price as is established by the Board or Compensation Committee. A SAR shall be exercisable in accordance
with such terms and conditions and during such periods as may be established by the Board or Compensation Committee. Shares of Common
Stock delivered pursuant to the exercise of a SAR shall be subject to such conditions, restrictions and contingencies as the Board or
Compensation Committee may establish in the applicable SAR agreement or document, if any. The Board or Compensation Committee, in its
discretion, may impose such conditions, restrictions and contingencies with respect to shares of Common Stock acquired pursuant to the
exercise of each SAR as the Board or Compensation Committee determines to be desirable. A SAR under the Plan shall be subject to such
terms and conditions, not inconsistent with the Plan, as the Board or Compensation Committee shall, in its discretion, prescribe. The
terms and conditions of any SAR to any grantee shall be reflected in such form of agreement as is determined by the Board or Compensation
Committee. A copy of such document, if any, shall be provided to the grantee, and the Board or Compensation Committee may condition the
granting of the SAR on the grantee executing such agreement.


 


(d) An RSU gives the grantee
the right to receive a number of shares of the Company’s Common Stock on applicable vesting or other dates. Delivery of the RSUs
may be deferred beyond vesting as determined by the Board or Compensation Committee. RSUs shall be evidenced by an RSU agreement in the
form determined by the Board or Compensation Committee. With respect to an RSU, which becomes non-forfeitable due to the lapse of
time, the Compensation Committee shall prescribe in the RSU agreement the vesting period. With respect to the granting of the RSU, which
becomes non-forfeitable due to the satisfaction of certain pre-established performance-based objectives imposed by the Board or Compensation
Committee, the measurement date of whether such performance-based objectives have been satisfied shall be a date no earlier than the first
anniversary of the date of the RSU. A recipient who is granted an RSU shall possess no incidents of ownership with respect to such underlying
Common Stock, although the RSU agreement may provide for payments in lieu of dividends to such grantee.


 


(e) Notwithstanding any provision
of this Plan, the Board or Compensation Committee may impose conditions and restrictions on any grant of Stock Rights including forfeiture
of vested Options, cancellation of Common Stock acquired in connection with any Stock Right and forfeiture of profits.


 


(f) The Options and SARs shall
not be exercisable for a period of more than 10 years from the date of grant.  


 


6. Sale of Shares.
The shares underlying Stock Rights granted to any Officer, director or a beneficial owner of 10% or more of the Company’s securities
registered under Section 12 of the Exchange Act shall not be sold, assigned or transferred by the grantee until at least six months elapse
from the date of the grant thereof.


 






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7. ISO Minimum Option Price
and Other Limitations.


 


(a) The exercise price per share
relating to all Options granted under the Plan shall not be less than the Fair Market Value per share of Common Stock on the last trading
day prior to the date of such grant. For purposes of determining the exercise price, the date of the grant shall be the later of (i) the
date of approval by the Board or Compensation Committee or the Board, or (ii) for ISOs, the date the recipient becomes an employee of
the Company. In the case of an ISO to be granted to an employee owning Common Stock which represents more than 10% of the total combined
voting power of all classes of stock of the Company or any Related Corporation, the price per share shall not be less than 110% of the
Fair Market Value per share of Common Stock on the date of grant and such ISO shall not be exercisable after the expiration of five years
from the date of grant.


 


(b) In no event shall the aggregate
Fair Market Value (determined at the time an ISO is granted) of Common Stock for which ISOs granted to any employee are exercisable for
the first time by such employee during any calendar year (under all stock option plans of the Company and any Related Corporation) exceed
$100,000.  


 


8. Duration of Stock Rights.
Subject to earlier termination as provided in Sections 5, 9, 10 and 11, each Option and SAR shall expire on the date specified in the
original instrument granting such Stock Right (except with respect to any part of an ISO that is converted into a Non-Qualified Option
pursuant to Section 17), provided, however, that such instrument must comply with Section 422 of the Code with
regard to ISOs and Rule 16b-3 with regard to all Stock Rights granted pursuant to the Plan to Officers, directors and 10% shareholders
of the Company.


 


9. Exercise of Options
and SARs; Vesting of Stock Rights. Subject to the provisions of Sections 9 through 13, each Option and SAR granted under the Plan
shall be exercisable as follows:


 


(a) The Options and SARs shall
either be fully vested and exercisable from the date of grant or shall vest and become exercisable in such installments as the Board or
Compensation Committee may specify.


 


(b) Once an installment becomes
exercisable it shall remain exercisable until expiration or termination of the Option and SAR, unless otherwise specified by the Board
or Compensation Committee.


 


(c) Each Option and SAR or installment,
once it becomes exercisable, may be exercised at any time or from time to time, in whole or in part, for up to the total number of shares
with respect to which it is then exercisable.


 


(d) The Board or Compensation
Committee shall have the right to accelerate the vesting date of any installment of any Stock Right; provided that the
Board or Compensation Committee shall not accelerate the exercise date of any installment of any Option granted to any employee as an
ISO (and not previously converted into a Non-Qualified Option pursuant to Section 17) if such acceleration would violate the annual exercisability
limitation contained in Section 422(d) of the Code as described in Section 7(b).


 






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10. Termination of Employment.
Subject to any greater restrictions or limitations as may be imposed by the Board or Compensation Committee or by a written agreement,
if an optionee ceases to be employed by the Company and all Related Corporations other than by reason of death or Disability, no further
installments of his Options shall vest or become exercisable, and his Options shall terminate as provided for in the grant or on the day
12  months after the day of the termination of his employment (except three months for ISOs), whichever is earlier, but in no event
later than on their specified expiration dates. Employment shall be considered as continuing uninterrupted during any bona fide leave
of absence (such as those attributable to illness, military obligations or governmental service) provided that the period of such leave
does not exceed 90 days or, if longer, any period during which such optionee’s right to re-employment is guaranteed by statute.
A leave of absence with the written approval of the Board shall not be considered an interruption of employment under the Plan, provided
that such written approval contractually obligates the Company or any Related Corporation to continue the employment of the optionee after
the approved period of absence. ISOs granted under the Plan shall not be affected by any change of employment within or among the Company
and Related Corporations so long as the optionee continues to be an employee of the Company or any Related Corporation.


 


11. Death; Disability.
Unless otherwise determined by the Board or Compensation Committee or by a written agreement:


 


(a) If the holder of an Option
or SAR ceases to be employed by the Company and all Related Corporations by reason of his death, any Options or SARs held by the optionee
may be exercised to the extent he could have exercised it on the date of his death, by his estate, personal representative or beneficiary
who has acquired the Options or SARs by will or by the laws of descent and distribution, at any time prior to the earlier of: (i) the
Options’ or SARs’ specified expiration date or (ii) one year (except three months for an ISO) from the date of death.


 


(b) If the holder of an Option
or SAR ceases to be employed by the Company and all Related Corporations, or a director or Director Advisor can no longer perform his
duties, by reason of his Disability, any Options or SARs held by the optionee may be exercised to the extent he could have exercised it
on the date of termination due to Disability until the earlier of (i) the Options’ or SARs’ specified expiration date or (ii)
one year from the date of the termination.


 


12. Assignment, Transfer
or Sale.


 


(a) No ISO granted under this
Plan shall be assignable or transferable by the grantee except by will or by the laws of descent and distribution, and during the lifetime
of the grantee, each ISO shall be exercisable only by him, his guardian or legal representative.


 


(b) Except for ISOs, all Stock
Rights are transferable subject to compliance with applicable securities laws and Section 6 of this Plan.


 


13. Terms and Conditions
of Stock Rights. Stock Rights shall be evidenced by instruments (which need not be identical) in such forms as the Board or Compensation
Committee may from time to time approve. Such instruments shall conform to the terms and conditions set forth in Sections 5 through 12
hereof and may contain such other provisions as the Board or Compensation Committee deems advisable which are not inconsistent with the
Plan. In granting any Stock Rights, the Board or Compensation Committee may specify that Stock Rights shall be subject to the restrictions
set forth herein with respect to ISOs, or to such other termination and cancellation provisions as the Board or Compensation Committee
may determine. The Board or Compensation Committee may from time to time confer authority and responsibility on one or more of its own
members and/or one or more Officers of the Company to execute and deliver such instruments. The proper Officers of the Company are authorized
and directed to take any and all action necessary or advisable from time to time to carry out the terms of such instruments.


 






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14. Adjustments Upon Certain
Events.


 


(a) Subject to any required
action by the shareholders of the Company, the number of shares of Common Stock covered by each outstanding Stock Right, and the number
of shares of Common Stock which have been authorized for issuance under the Plan but as to which no Stock Rights have yet been granted
or which have been returned to the Plan upon cancellation or expiration of a Stock Right, as well as the price per share of Common Stock
(or cash, as applicable) covered by each such outstanding Option or SAR, shall be proportionately adjusted for any increases or decrease
in the number of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassification
of Common Stock, or any other increase or decrease in the number of issued shares of Common Stock effected without receipt of consideration
by the Company; provided, however, that conversion of any convertible securities of the Company or the voluntary
cancellation whether by virtue of a cashless exercise of a derivative security of the Company or otherwise shall not be deemed to have
been “effected without receipt of consideration.”  Such adjustment shall be made by the Board or Compensation Committee,
whose determination in that respect shall be final, binding and conclusive.  Except as expressly provided herein, 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 of Common Stock subject to a Stock Right. No adjustments
shall be made for dividends or other distributions paid in cash or in property other than securities of the Company.


 


(b) In the event of the proposed
dissolution or liquidation of the Company, the Board or Compensation Committee shall notify each participant as soon as practicable prior
to the effective date of such proposed transaction.  To the extent it has not been previously exercised, a Stock Right will terminate
immediately prior to the consummation of such proposed action.


 


(c) In the event of a merger
of the Company with or into another corporation, or a Change of Control, each outstanding Stock Right shall be assumed (as defined below)
or an equivalent option or right 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 Stock Rights, the participants shall fully vest in
and have the right to exercise their Stock Rights as to which it would not otherwise be vested or exercisable.  If a Stock Right
becomes fully vested and exercisable in lieu of assumption or substitution in the event of a merger or sale of assets, the Board or Compensation
Committee shall notify the participant in writing or electronically that the Stock Right shall be fully vested and exercisable for a period
of at least 15 days from the date of such notice, and any Options or SARs shall terminate one minute prior to the closing of the merger
or sale of assets.   


 






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For the purposes of this Section
14(c), the Stock Right shall be considered “assumed” if, following the merger or Change of Control, the option or right confers
the right to purchase or receive, for each share of Common Stock subject to the Stock Right immediately prior to the merger or Change
of Control, the consideration (whether stock, cash, or other securities or property) received in the merger or Change of Control by holders
of Common Stock for each share held on the effective date of the transaction (and if holders were offered a choice of consideration, the
type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that
if such consideration received in the merger or Change of Control is not solely common stock of the successor corporation or its parent,
the Board or Compensation Committee may, with the consent of the successor corporation, provide for the consideration to be received upon
the exercise of the Stock Right, for each share of Common Stock subject to the Stock Right, to be solely common stock of the successor
corporation or its parent equal in Fair Market Value to the per share consideration received by holders of Common Stock in the merger
or Change of Control.


 


(d) Notwithstanding the foregoing,
any adjustments made pursuant to Section 14(a), (b) or (c) with respect to ISOs shall be made only after the Board or Compensation Committee,
after consulting with counsel for the Company, determines whether such adjustments would constitute a “modification” of such
ISOs (as that term is defined in Section 424(h) of the Code) or would cause any adverse tax consequences for the holders of such ISOs.
 If the Board or Compensation Committee determines that such adjustments made with respect to ISOs would constitute a modification
of such ISOs it may refrain from making such adjustments.


 


(e) No fractional shares shall
be issued under the Plan and the optionee shall receive from the Company cash in lieu of such fractional shares.


 


15. Means of Exercising
Stock Rights.


 


(a) An Option or SAR (or any
part or installment thereof) shall be exercised by giving written notice to the Company at its principal office address. Such notice shall
identify the Stock Right being exercised and specify the number of shares as to which such Stock Right is being exercised, accompanied
by full payment of the exercise price therefor (to the extent it is exercisable in cash) either (i) in United States dollars by check
or wire transfer; or (ii) at the discretion of the Board or Compensation Committee, through delivery of shares of Common Stock having
a Fair Market Value equal as of the date of the exercise to the cash exercise price of the Stock Right or such other formula as may be
approved by the Board or Compensation Committee; or (iii) at the discretion of the Board or Compensation Committee, by any combination
of (i) and (ii) above. If the Board or Compensation Committee exercises its discretion to permit payment of the exercise price of an ISO
by means of the methods set forth in clauses (ii) or (iii) of the preceding sentence, such discretion need not be exercised in writing
at the time of the grant of the Stock Right in question. The holder of a Stock Right shall not have the rights of a shareholder with respect
to the shares covered by his Stock Right until the date of issuance of a stock certificate to him for such shares. Except as expressly
provided above in Section 14 with respect to changes in capitalization and stock dividends, no adjustment shall be made for dividends
or similar rights for which the record date is before the date such stock certificate is issued.


 






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(b) Each notice of exercise
shall, unless the shares of Common Stock are covered by a then current registration statement under the Securities Act, contain the holder’s
acknowledgment in form and substance satisfactory to the Company that (i) such shares are being purchased for investment and not for distribution
or resale (other than a distribution or resale which, in the opinion of counsel satisfactory to the Company, may be made without violating
the registration provisions of the Securities Act), (ii) the holder has been advised and understands that (1) the shares have not been
registered under the Securities Act and are “restricted securities” within the meaning of Rule 144 under the Securities Act
and are subject to restrictions on transfer and (2) the Company is under no obligation to register the shares under the Securities Act
or to take any action which would make available to the holder any exemption from such registration, and (iii) such shares may not be
transferred without compliance with all applicable federal and state securities laws. Notwithstanding the above, should the Company be
advised by counsel that issuance of shares should be delayed pending registration under federal or state securities laws or the receipt
of an opinion that an appropriate exemption therefrom is available, the Company may defer exercise of any Stock Right granted hereunder
until either such event has occurred.


 


16. Term, Termination and
Amendment.  


 


(a) This Plan was adopted by
the Board.  This Plan may be approved by the Company’s shareholders, which approval is required for ISOs.


 


(b) The Board may terminate
the Plan at any time.  Unless sooner terminated, the Plan shall terminate on September 6, 2031 or 10 years from the date the Board
adopts the Plan.  No Stock Rights may be granted under the Plan once the Plan is terminated.  Termination of the Plan shall
not impair rights and obligations under any Stock Right granted while the Plan is in effect, except with the written consent of the grantee.


 


(c) The Board at any time, and
from time to time, may amend the Plan.  Provided, however, except as provided in Section 14 relating to adjustments
in Common Stock, no amendment shall be effective unless approved by the shareholders of the Company to the extent (i) shareholder approval
is necessary to satisfy the requirements of Section 422 of the Code or (ii) required by the rules of the principal national securities
exchange or trading market upon which the Company’s Common Stock trades. Rights under any Stock Rights granted before amendment
of the Plan shall not be impaired by any amendment of the Plan, except with the written consent of the grantee.


 


(d) The Board at any time, and
from time to time, may amend the terms of any one or more Stock Rights; provided, however, that the rights under
the Stock Right shall not be impaired by any such amendment, except with the written consent of the grantee.


 


17. Conversion of ISOs
into Non-Qualified Options; Termination of ISOs. The Board or Compensation Committee, at the written request of any optionee, may
in its discretion take such actions as may be necessary to convert such optionee’s ISOs (or any installments or portions of installments
thereof) that have not been exercised on the date of conversion into Non-Qualified Options at any time prior to the expiration of such
ISOs, regardless of whether the optionee is an employee of the Company or a Related Corporation at the time of such conversion.  Provided, however,
the Board or Compensation Committee shall not reprice the Options or extend the exercise period or reduce the exercise price of the appropriate
installments of such Options without the approval of the Company’s shareholders. At the time of such conversion, the Board or Compensation
Committee (with the consent of the optionee) may impose such conditions on the exercise of the resulting Non-Qualified Options as the
Board or Compensation Committee in its discretion may determine, provided that such conditions shall not be inconsistent with this Plan.
Nothing in the Plan shall be deemed to give any optionee the right to have such optionee’s ISOs converted into Non-Qualified Options,
and no such conversion shall occur until and unless the Board or Compensation Committee takes appropriate action. The Compensation Committee,
with the consent of the optionee, may also terminate any portion of any ISO that has not been exercised at the time of such termination.


 






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18. Application of Funds.
The proceeds received by the Company from the sale of shares pursuant to Options or SARS (if cash settled) granted under the Plan shall
be used for general corporate purposes.


 


19. Governmental Regulations.
The Company’s obligation to sell and deliver shares of the Common Stock under this Plan is subject to the approval of any governmental
authority required in connection with the authorization, issuance or sale of such shares.


 


20. Withholding of Additional
Income Taxes. In connection with the granting, exercise or vesting of a Stock Right or the making of a Disqualifying Disposition the
Company, in accordance with Section 3402(a) of the Code, may require the optionee to pay additional withholding taxes in respect of the
amount that is considered compensation includable in such person’s gross income.


 


To the extent that the Company is required to
withhold taxes for federal income tax purposes as provided above, if any optionee may elect to satisfy such withholding requirement by
(i) paying the amount of the required withholding tax to the Company; (ii) delivering to the Company shares of its Common Stock (including
shares of Restricted Stock) previously owned by the optionee; or (iii) having the Company retain a portion of the shares covered by an
Option exercise. The number of shares to be delivered to or withheld by the Company times the Fair Market Value of such shares or such
other formula as may be approved by the Board or Compensation Committee pursuant to the Plan shall equal the cash required to be withheld.


 


21. Notice to the Company
of Disqualifying Disposition. Each employee who receives an ISO must agree to notify the Company in writing immediately after the
employee makes a Disqualifying Disposition of any Common Stock acquired pursuant to the exercise of an ISO. If the employee has died before
such stock is sold, the holding periods requirements of the Disqualifying Disposition do not apply and no Disqualifying Disposition can
occur thereafter.


 


22. Continued Employment.
The grant of a Stock Right pursuant to the Plan shall not be construed to imply or to constitute evidence of any agreement, express or
implied, on the part of the Company or any Related Corporation to retain the grantee in the employ of the Company or a Related Corporation,
as a member of the Company’s Board or in any other capacity, whichever the case may be.


 


23. Governing Law; Construction.
The validity and construction of the Plan and the instruments evidencing Stock Rights shall be governed by the laws of the Company’s
state of incorporation. In construing this Plan, the singular shall include the plural and the masculine gender shall include the feminine
and neuter, unless the context otherwise requires.


 






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24. (a) Forfeiture of Stock
Rights Granted to Employees or Consultants. Notwithstanding any other provision of this Plan, and unless otherwise provided for in
a Stock Rights Agreement, all vested or unvested Stock Rights granted to employees or consultants shall be immediately forfeited at the
discretion of the Board if any of the following events occur:


 


(1) Termination of the relationship
with the grantee for cause including, but not limited to, fraud, theft, dishonesty and violation of Company policy;


 


(2) Purchasing or selling
securities of the Company in violation of the Company’s insider trading guidelines then in effect;


 


(3) Breaching any duty of
confidentiality including that required by the Company’s insider trading guidelines then in effect;


 


(4) Competing with the Company;


 


(5) Being unavailable for
consultation after leaving the Company’s employment if such availability is a condition of any agreement between the Company and
the grantee;


 


(6) Recruitment of Company
personnel after termination of employment, whether such termination is voluntary or for cause;


 


(7) Failure to assign any
invention or technology to the Company if such assignment is a condition of employment or any other agreements between the Company and
the grantee; or


 


(8) A finding by the Board
that the grantee has acted disloyally and/or against the interests of the Company.


 


(b) Forfeiture of Stock Rights
Granted to Directors.  Notwithstanding any other provision of this Plan, and unless otherwise provided for in a Stock Rights
Agreement, all vested or unvested Stock Rights granted to directors shall be immediately forfeited at the discretion of the Board if any
of the following events occur:


 


(1) Purchasing or selling
securities of the Company in violation of the Company’s insider trading guidelines then in effect;


 


(2) Breaching any duty of
confidentiality including that required by the Company’s insider trading guidelines then in effect;


 


(3) Competing with the Company;


 


(4) Recruitment of Company
personnel after ceasing to be a director;


or


 


(5) A finding by the Board
that the grantee has acted disloyally and/or against the interests of the Company.


 


The Company may impose other
forfeiture restrictions which are more or less restrictive and require a return of profits from the sale of Common Stock as part of said
forfeiture provisions if such forfeiture provisions and/or return of provisions are contained in a Stock Rights Agreement.


 


(c) Profits on the Sale of
Certain Shares; Redemption.  If any of the events specified in Section 24(a) or (b) of the Plan occur within one year from the
date the grantee last performed services for the Company in the capacity for which the Stock Rights were granted (the  “Termination
Date”) (or such longer period required by any written agreement), all profits earned from the sale of the Company’s securities,
including the sale of shares of Common Stock underlying the Stock Rights, during the two-year period commencing one year prior to the
Termination Date shall be forfeited and immediately paid by the grantee to the Company.  Further, in such event, the Company may
at its option redeem shares of Common Stock acquired upon exercise of the Stock Right by payment of the exercise price to the grantee.
 To the extent that another written agreement with the Company extends the events in Section 24(a) or (b) beyond one year following
the Termination Date, the two-year period shall be extended by an equal number of days.  The Company’s rights under this Section
24(c) do not lapse one year form the Termination Date but are contract rights subject to any appropriate statutory limitation period.


 


 


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