EXHIBIT 4.1


SYNTHETIC BIOLOGICS, INC.

2010 STOCK INCENTIVE PLAN

(as amended and restated on May 15, 2015) 


 


ARTICLE I

GENERAL


 








1.1 Purpose 




 


The purpose of the Synthetic Biologics, Inc.
(formerly known as Adeona Pharmaceuticals, Inc.) 2010 Stock Incentive Plan (the “Plan”) is to provide an incentive
for the employees, directors, and consultants to Synthetic Biologics, Inc. (formerly known as Adeona Pharmaceuticals, Inc.) (the
“Company”) and its subsidiaries an incentive (a) to enter into and remain in the service of the Company, (b) to enhance
the long-term performance of the Company, and (c) to acquire a proprietary interest in the success of the Company.


 





1.2 Administration





 


1.2.1 The Plan shall be administered by the
Compensation Committee (the “Committee”) of the board of directors of the Company (the “Board”), which
shall consist of not less than two directors. The members of the Committee shall be appointed by, and serve at the pleasure of,
the Board. To the extent required for transactions under the Plan to qualify for the exemptions available under Rule 16b-3 (“Rule
16b-3”) promulgated under the Securities Exchange Act of 1934 (the “1934 Act”), all actions relating to awards
to persons subject to Section 16 of the 1934 Act shall be taken by the Board unless each person who serves on the Committee is
a “non-employee director” within the meaning of Rule 16b-3 or such actions are taken by a sub-committee of the Committee
(or the Board) comprised solely of “non-employee directors”. To the extent required for compensation realized from
awards under the Plan to be deductible by the Company pursuant to section 162(m) of the Internal Revenue Code of 1986 (the “Code”),
the members of the Committee shall be “outside directors” within the meaning of section 162(m).


 


1.2.2 The Committee shall have the authority
(a) to exercise all of the powers granted to it under the Plan, (b) to construe, interpret and implement the Plan and any Plan
Agreements executed pursuant to Section 2.1, (c) to prescribe, amend and rescind rules and regulations relating to the Plan, including
rules governing its own operations, (d) to make all determinations necessary or advisable in administering the Plan, (e) to correct
any defect, supply any omission and reconcile any inconsistency in the Plan, (f) to amend the Plan to reflect changes in applicable
law, (g) to determine whether, to what extent and under what circumstances awards may be settled or exercised in cash, shares of
the Company’s common stock, par value $.001 (the “Common Stock”), other securities, other awards or other property,
or canceled, forfeited or suspended and the method or methods by which awards may be settled, canceled, forfeited or suspended,
and (h) to determine whether, to what extent and under what circumstances cash, shares of the Common Stock, other securities, other
awards or other property and other amounts payable with respect to an award shall be deferred either automatically or at the election
of the holder thereof or of the Committee.


 


1.2.3 Actions of the Committee shall be taken
by the vote of a majority of its members. Any action may be taken by a written instrument signed by a majority of the Committee
members, and action so taken shall be fully as effective as if it had been taken by a vote at a meeting.


 


1.2.4 The determination of the Committee
on all matters relating to the Plan or any Plan Agreement shall be final, binding and conclusive.


 


1.2.5 No member of the Committee shall be
liable for any action or determination made in good faith with respect to the Plan or any award thereunder.





 


1.2.6 Notwithstanding anything to the contrary
contained herein: (a) until the Board shall appoint the members of the Committee, the Plan shall be administered by the Board;
and (b) the Board may, in its sole discretion, at any time and from time to time, grant awards or resolve to administer the Plan.
In either of the foregoing events, the Board shall have all of the authority and responsibility granted to the Committee herein.


 


1.3 Persons Eligible for Awards 


 


Awards under the Plan may be made to such
directors, officers and other employees of the Company and its subsidiaries (including prospective employees conditioned on their
becoming employees), and to such consultants to the Company and its subsidiaries (collectively, “key persons”) as the
Committee shall in its discretion select.


 


1.4 Types of Awards Under the Plan 


 


Awards may be made under the Plan in the
form of (a) incentive stock options (within the meaning of section 422 of the Code), (b) nonqualified stock options, (c) stock
appreciation rights, (d) restricted stock, (e) restricted stock units and (f) other stock-based awards, all as more fully set forth
in Article II. The term “award” means any of the foregoing. No incentive stock option may be granted to a person who
is not an employee of the Company on the date of grant.


 






    	 



    	 



    

 





1.5 Shares Available for Awards 


 


1.5.1 The total number of shares of the Common
Stock which may be transferred pursuant to awards granted under the Plan shall not exceed 8,000,000. The 8,000,000 shares referred
to in the immediately preceding sentence include 3,000,000 shares of common stock initially included in the Plan when the Plan
was adopted on September 27, 2010, 3,000,000 shares added to the Plan as of September 17, 2013 and 2,000,000 shares added to the
Plan as of May 15, 2015. Such shares may be authorized but unissued shares of the Common Stock or authorized and issued shares
of the Common Stock held in the Company’s treasury or acquired by the Company for the purposes of the Plan. The Committee
may direct that any stock certificate evidencing shares issued pursuant to the Plan shall bear a legend setting forth such restrictions
on transferability as may apply to such shares pursuant to the Plan. If, after the effective date of the Plan, any award is forfeited
or any award otherwise terminates or is cancelled without the delivery of shares of Stock, then the shares covered by such award
or to which such award relates shall again become available for transfer pursuant to awards granted or to be granted under this
Plan. Any shares of Stock delivered by the Company, any shares of Stock with respect to which awards are made by the Company and
any shares of Stock with respect to which the Company becomes obligated to make awards, through the assumption of, or in substitution
for, outstanding awards previously granted by an acquired entity, shall not be counted against the shares available for awards
under this Plan.


 


1.5.2 Upon certain changes in Stock, the
number of shares of Stock available for issuance with respect to awards under the Plan, as set forth in Sections 1.5.1 and 1.5.2,
shall be adjusted pursuant to Section 3.7.1.


 


1.5.3 Except as provided in this Section
1.5 and in Section 2.3.7, there shall be no limit on the number or the value of the shares of Stock that may be subject to awards
to any individual under the Plan.


 


1.6 Definitions of Certain Terms 


 


1.6.1 The “Fair Market Value”
of a share of Stock on any day shall be determined as follows.


 


(a) If the principal market for the Stock
(the “Market”) is a national securities exchange, the last sale price or, if no reported sales take place on the applicable
date, the average of the high bid and low asked price of Stock as reported for such Market on such date or, if no such quotation
is made on such date, on the next preceding day on which there were quotations, provided that such quotations shall have been made
within the ten (10) business days preceding the applicable date;


 


(b) If the Market is the Over the Counter
Bulletin Board or another market, the average of the high bid and low asked price for Stock on the applicable date, or, if no such
quotations shall have been made on such date, on the next preceding day on which there were quotations, provided that such quotations
shall have been made within the ten (10) business days preceding the applicable date; or


 


(c) In the event that neither paragraph (a)
nor (b) shall apply, the Fair Market Value of a share of Stock on any day shall be determined in good faith by the Committee.





 


1.6.2 The term “incentive stock option”
means an option that is intended to qualify for special federal income tax treatment pursuant to sections 421 and 422 of the Code,
as now constituted or subsequently amended, or pursuant to a successor provision of the Code, and which is so designated in the
applicable Plan Agreement. Any option that is not specifically designated as an incentive stock option shall under no circumstances
be considered an incentive stock option. Any option that is not an incentive stock option is referred to herein as a “nonqualified
stock option.”


 


1.6.3 The term “employment” means,
in the case of a grantee of an award under the Plan who is not an employee of the Company, the grantee’s association with
the Company or a subsidiary as a director, consultant or otherwise.


 


1.6.4 A grantee shall be deemed to have a
“termination of employment” upon ceasing to be employed by the Company and all of its subsidiaries or by a corporation
assuming awards in a transaction to which section 424(a) of the Code applies. The Committee may in its discretion determine (a)
whether any leave of absence constitutes a termination of employment for purposes of the Plan, (b) the impact, if any, of any such
leave of absence on awards theretofore made under the Plan, and (c) when a change in a non-employee’s association with the
Company constitutes a termination of employment for purposes of the Plan. The Committee shall have the right to determine whether
the termination of a grantee’s employment is a dismissal for cause and the date of termination in such case, which date the
Committee may retroactively deem to be the date of the action that is cause for dismissal. Such determinations of the Committee
shall be final, binding and conclusive.


 


1.6.5 The term “cause,” when
used in connection with termination of a grantee’s employment, shall have the meaning set forth in any then-effective employment
agreement between the grantee and the Company or a subsidiary thereof. In the absence, of or in addition to, as the case may be,
such an employment agreement provision, “cause” means: (a) conviction of any crime (whether or not involving the Company)
constituting a felony in the jurisdiction involved; (b) engaging in any substantiated act involving moral turpitude; (c) engaging
in any act which, in each case, subjects, or if generally known would subject, the Company to public ridicule or embarrassment;
(d) material violation of the Company’s policies, including, without limitation, those relating to sexual harassment or the
disclosure or misuse of confidential information; (e) serious neglect or misconduct in the performance of the grantee’s duties
for the Company or a subsidiary or willful or repeated failure or refusal to perform such duties; in each case as determined by
the Committee, which determination shall be final, binding and conclusive.


 






    	 



    	 



    

 


ARTICLE II

AWARDS UNDER THE PLAN 


2.1 Agreements Evidencing Awards 


 


Each award granted under the Plan shall be
evidenced by a written agreement (“Plan Agreement”) which shall contain such provisions as the Committee in its discretion
deems necessary or desirable. Such provisions may include, without limitation, a requirement that the grantee become a party to
a shareholders’ agreement with respect to any shares of Stock acquired pursuant to the award, a requirement that the grantee
acknowledge that such shares are acquired for investment purposes only, and a right of first refusal exercisable by the Company
in the event that the grantee wishes to transfer any such shares. The Committee may grant awards in tandem with or in substitution
for any other award or awards granted under this Plan or any award granted under any other plan of the Company or any subsidiary.
Payments or transfers to be made by the Company or any subsidiary upon the grant, exercise or payment of an award may be made in
such form as the Committee shall determine, including cash, shares of Stock, other securities, other awards or other property and
may be made in a single payment or transfer, in installments or on a deferred basis, in each case in accordance with rules established
by the Committee. By accepting an award pursuant to the Plan, a grantee thereby agrees that the award shall be subject to all of
the terms and provisions of the Plan and the applicable Plan Agreement.


 


2.2 No Rights as a Shareholder 


 





No grantee of an option or stock appreciation
right (or other person having the right to exercise such award) shall have any of the rights of a shareholder of the Company with
respect to shares subject to such award until the issuance of a stock certificate to such person for such shares.


 


2.3 Grant of Stock Options and Stock Appreciation Rights



 


2.3.1 The Committee may grant incentive stock
options and nonqualified stock options (collectively, “options”) to purchase shares of the Common Stock from the Company,
to such key persons, in such amounts and subject to such terms and conditions, as the Committee shall determine in its discretion,
subject to the provisions of the Plan.


 


2.3.2 The Committee may grant stock appreciation
rights to such key persons, in such amounts and subject to such terms and conditions, as the Committee shall determine in its discretion,
subject to the provisions of the Plan. Stock appreciation rights may be granted in connection with all or any part of, or independently
of, any option granted under the Plan. A stock appreciation right granted in connection with a nonqualified stock option may be
granted at or after the time of grant of such option. A stock appreciation right granted in connection with an incentive stock
option may be granted only at the time of grant of such option.


 


2.3.3 The grantee of a stock appreciation
right shall have the right, subject to the terms of the Plan and the applicable Plan Agreement, to receive from the Company an
amount equal to (a) the excess of the Fair Market Value of a share of the Common Stock on the date of exercise of the stock appreciation
right over (b) the exercise price of such right as set forth in the Plan Agreement (or over the option exercise price if the stock
appreciation right is granted in connection with an option), multiplied by (c) the number of shares with respect to which the stock
appreciation right is exercised. Payment upon exercise of a stock appreciation right shall be in cash or in shares of the Common
Stock (valued at their Fair Market Value on the date of exercise of the stock appreciation right) or both, all as the Committee
shall determine in its discretion. Upon the exercise of a stock appreciation right granted in connection with an option, the number
of shares subject to the option shall be correspondingly reduced by the number of shares with respect to which the stock appreciation
right is exercised. Upon the exercise of an option in connection with which a stock appreciation right has been granted, the number
of shares subject to the stock appreciation right shall be correspondingly reduced by the number of shares with respect to which
the option is exercised.


 


2.3.4 Each Plan Agreement with respect to
an option shall set forth the amount (the “option exercise price”) payable by the grantee to the Company upon exercise
of the option evidenced thereby. The option exercise price per share shall be determined by the Committee in its discretion; provided,
however, that the option exercise price of an incentive stock option shall be at least 100% of the Fair Market Value of a share
of the Common Stock on the date the option is granted, and provided further that in no event shall the option exercise price be
less than the par value of a share of the Common Stock.


 


2.3.5 Each Plan Agreement with respect to
an option or stock appreciation right shall set forth the periods during which the award evidenced thereby shall be exercisable,
whether in whole or in part. Such periods shall be determined by the Committee in its discretion; provided, however, that no incentive
stock option (or a stock appreciation right granted in connection with an incentive stock option) shall be exercisable more than
10 years after the date of grant.


 


2.3.6 The Committee may in its discretion
include in any Plan Agreement with respect to an option (the “original option”) a provision that an additional option
(the “additional option”) shall be granted to any grantee who, pursuant to Section 2.4.3(b), delivers shares of the
Common Stock in partial or full payment of the exercise price of the original option. The additional option shall be for a number
of shares of the Common Stock equal to the number thus delivered, shall have an exercise price equal to the Fair Market Value of
a share of the Common Stock on the date of exercise of the original option, and shall have an expiration date no later than the
expiration date of the original option. In the event that a Plan Agreement provides for the grant of an additional option, such
Agreement shall also provide that the exercise price of the original option be no less than the Fair Market Value of a share of
Stock on its date of grant, and that any shares that are delivered pursuant to Section 2.4.3(b) in payment of such exercise price
shall have been held for at least six months.


 






    	 



    	 



    

 





2.3.7 To the extent that the aggregate Fair
Market Value (determined as of the time the option is granted) of the stock with respect to which incentive stock options granted
under this Plan and all other plans of the Company and any subsidiary are first exercisable by any employee during any calendar
year shall exceed the maximum limit (currently, $100,000), if any, imposed from time to time under section 422 of the Code, such
options shall be treated as nonqualified stock options.


 


2.3.8 Notwithstanding the provisions of Sections
2.3.4 and 2.3.5, to the extent required under section 422 of the Code, an incentive stock option may not be granted under the Plan
to an individual who, at the time the option is granted, owns stock possessing more than 10% of the total combined voting power
of all classes of stock of his employer corporation or of its parent or subsidiary corporations (as such ownership may be determined
for purposes of section 422(b)(6) of the Code) unless (a) at the time such incentive stock option is granted the option exercise
price is at least 110% of the Fair Market Value of the shares subject thereto and (b) the incentive stock option by its terms is
not exercisable after the expiration of 5 years from the date it is granted.


 


2.4 Exercise of Options and Stock Appreciation Rights



 


Subject to the provisions of this Article
II, each option or stock appreciation right granted under the Plan shall be exercisable as follows:


 


2.4.1 Unless the applicable Plan Agreement
otherwise provides, an option or stock appreciation right may be exercised from time to time as to all or part of the shares as
to which such award is then exercisable (but, in any event, only for whole shares). A stock appreciation right granted in connection
with an option may be exercised at any time when, and to the same extent that, the related option may be exercised. An option or
stock appreciation right shall be exercised by the filing of a written notice with the Company, on such form and in such manner
as the Committee shall prescribe.


 


2.4.2 Any written notice of exercise of an
option shall be accompanied by payment for the shares being purchased. Such payment shall be made: (a) by certified or official
bank check (or the equivalent thereof acceptable to the Company) for the full option exercise price; or (b) unless the applicable
Plan Agreement provides otherwise, by delivery of shares of the Common Stock (which, if acquired pursuant to exercise of a stock
option, were acquired at least six months prior to the option exercise date) and having a Fair Market Value (determined as of the
exercise date) equal to all or part of the option exercise price and a certified or official bank check (or the equivalent thereof
acceptable to the Company) for any remaining portion of the full option exercise price; or (c) at the discretion of the Committee
and to the extent permitted by law, by such other provision as the Committee may from time to time prescribe.


 


2.4.3 Promptly after receiving payment of
the full option exercise price, or after receiving notice of the exercise of a stock appreciation right for which payment will
be made partly or entirely in shares, the Company shall, subject to the provisions of Section 3.3 (relating to certain restrictions),
deliver to the grantee or to such other person as may then have the right to exercise the award, a certificate or certificates
for the shares of the Common Stock for which the award has been exercised. If the method of payment employed upon option exercise
so requires, and if applicable law permits, an optionee may direct the Company to deliver the certificate(s) to the optionee’s
stockbroker.


 


2.5 Termination of Employment; Death 


 


2.5.1 Except to the extent otherwise provided
in Section 2.5.2 or 2.5.3 or in the applicable Plan Agreement, all options and stock appreciation rights not theretofore exercised
shall terminate upon termination of the grantee’s employment for any reason (including death).


 


2.5.2 If a grantee’s employment terminates
for any reason other than death or dismissal for cause, the grantee may exercise any outstanding option or stock appreciation right
on the following terms and conditions: (a) exercise may be made only to the extent that the grantee was entitled to exercise the
award on the date of employment termination; and (b) exercise must occur within 90 days after employment terminates, except that
this 90 day period shall be increased to one year if the termination is by reason of disability, but in no event after the expiration
date of the award as set forth in the Plan Agreement. In the case of an incentive stock option, the term “disability”
for purposes of the preceding sentence shall have the meaning given to it by section 422(c)(6) of the Code.


 





2.5.3 If a grantee dies while employed by
the Company or any subsidiary, or after employment termination but during the period in which the grantee’s awards are exercisable
pursuant to Section 2.5.2, any outstanding option or stock appreciation right shall be exercisable on the following terms and conditions:
(a) exercise may be made only to the extent that the grantee was entitled to exercise the award on the date of death; and (b) exercise
must occur by the earlier of the first anniversary of the grantee’s death or the expiration date of the award. Any such exercise
of an award following a grantee’s death shall be made only by the grantee’s executor or administrator, unless the grantee’s
will specifically disposes of such award, in which case such exercise shall be made only by the recipient of such specific disposition.
If a grantee’s personal representative or the recipient of a specific disposition under the grantee’s will shall be
entitled to exercise any award pursuant to the preceding sentence, such representative or recipient shall be bound by all the terms
and conditions of the Plan and the applicable Plan Agreement which would have applied to the grantee including, without limitation,
the provisions of Sections 3.3 and 3.7 hereof.


 






    	 



    	 



    




 


2.6 Grant of Restricted Stock 


 


2.6.1 The Committee may grant restricted
shares of Stock to such key persons, in such amounts, and subject to such terms and conditions as the Committee shall determine
in its discretion, subject to the provisions of the Plan. Restricted stock awards may be made independently of or in connection
with any other award under the Plan. A grantee of a restricted stock award shall have no rights with respect to such award unless
such grantee accepts the award within such period as the Committee shall specify by executing a Plan Agreement in such form as
the Committee shall determine and, if the Committee shall so require, makes payment to the Company by certified or official bank
check (or the equivalent thereof acceptable to the Company) in such amount as the Committee may determine.


 


2.6.2 Promptly after a grantee accepts a
restricted stock award, the Company shall issue in the grantee’s name a certificate or certificates for the shares of the
Common Stock covered by the award. Upon the issuance of such certificate(s), the grantee shall have the rights of a shareholder
with respect to the restricted stock, subject to the nontransferability restrictions and Company repurchase rights described in
Sections 2.6.4 and 2.6.5 and to such other restrictions and conditions as the Committee in its discretion may include in the applicable
Plan Agreement.


 


2.6.3 Unless the Committee shall otherwise
determine, any certificate issued evidencing shares of restricted stock shall remain in the possession of the Company until such
shares are free of any restrictions specified in the applicable Plan Agreement.


 


2.6.4 Shares of restricted stock may not
be sold, assigned, transferred, pledged or otherwise encumbered or disposed of except as specifically provided in this Plan or
the applicable Plan Agreement. The Committee at the time of grant shall specify the date or dates (which may depend upon or be
related to the attainment of performance goals and other conditions) on which the nontransferability of the restricted stock shall
lapse. Unless the applicable Plan Agreement provides otherwise, additional shares of Stock or other property distributed to the
grantee in respect of shares of restricted stock, as dividends or otherwise, shall be subject to the same restrictions applicable
to such restricted stock.


 


2.6.5 During the 120 days following termination
of the grantee’s employment for any reason, the Company shall have the right to require the return of any shares to which
restrictions on transferability apply, in exchange for which the Company shall repay to the grantee (or the grantee’s estate)
any amount paid by the grantee for such shares.


 


2.7 Grant of Restricted Stock Units 


 


2.7.1 The Committee may grant awards of restricted
stock units to such key persons, in such amounts, and subject to such terms and conditions as the Committee shall determine in
its discretion, subject to the provisions of the Plan. Restricted stock units may be awarded independently of or in connection
with any other award under the Plan.


 





2.7.2 At the time of grant, the Committee
shall specify the date or dates on which the restricted stock units shall become fully vested and nonforfeitable, and may specify
such conditions to vesting as it deems appropriate. In the event of the termination of the grantee’s employment by the Company
and its subsidiaries for any reason, restricted stock units that have not become nonforfeitable shall be forfeited and cancelled.
The Committee at any time may accelerate vesting dates and otherwise waive or amend any conditions of an award of restricted stock
units.


 


2.7.3 At the time of grant, the Committee
shall specify the maturity date applicable to each grant of restricted stock units, which may be determined at the election of
the grantee. Such date may be later than the vesting date or dates of the award. On the maturity date, the Company shall transfer
to the grantee one unrestricted, fully transferable share of the Common Stock for each restricted stock unit scheduled to be paid
out on such date and not previously forfeited. The Committee shall specify the purchase price, if any, to be paid by the grantee
to the Company for such shares of the Common Stock.


 


2.8 Other Stock-Based Awards 


 


The Committee may grant other types of stock-based
awards (including the grant of unrestricted shares) to such key persons, in such amounts and subject to such terms and conditions,
as the Committee shall in its discretion determine, subject to the provisions of the Plan. Such awards may entail the transfer
of actual shares of the Common Stock to Plan participants, or payment in cash or otherwise of amounts based on the value of shares
of the Common Stock.


 


ARTICLE III

MISCELLANEOUS 


3.1 Amendment of the Plan; Modification of Awards



 


3.1.1 The Board may from time to time suspend,
discontinue, revise or amend the Plan in any respect whatsoever, except that no such amendment shall materially impair any rights
or materially increase any obligations under any award theretofore made under the Plan without the consent of the grantee (or,
after the grantee’s death, the person having the right to exercise the award). For purposes of this Section 3.1, any action
of the Board or the Committee that alters or affects the tax treatment of any award shall not be considered to materially impair
any rights of any grantee.


 






    	 



    	 



    

 


3.1.2 Stockholder approval of any amendment
shall be obtained to the extent necessary to comply with section 422 of the Code (relating to incentive stock options) or other
applicable law or regulation.


 


3.1.3 The Committee may amend any outstanding
Plan Agreement, including, without limitation, by amendment which would accelerate the time or times at which the award becomes
unrestricted or may be exercised, or waive or amend any goals, restrictions or conditions set forth in the Agreement. However,
any such amendment (other than an amendment pursuant to Section 3.7.2, relating to change in control) that materially impairs the
rights or materially increases the obligations of a grantee under an outstanding award shall be made only with the consent of the
grantee (or, upon the grantee’s death, the person having the right to exercise the award).


 


3.2 Tax Withholding 


 


3.2.1 As a condition to the receipt of any
shares of the Common Stock pursuant to any award or the lifting of restrictions on any award, or in connection with any other event
that gives rise to a federal or other governmental tax withholding obligation on the part of the Company relating to an award (including,
without limitation, FICA tax), the Company shall be entitled to require that the grantee remit to the Company an amount sufficient
in the opinion of the Company to satisfy such withholding obligation.


 


3.2.2 If the event giving rise to the withholding
obligation is a transfer of shares of the Common Stock, then, unless otherwise specified in the applicable Plan Agreement, the
grantee may satisfy the withholding obligation imposed under Section 3.2.1 by electing to have the Company withhold shares of the
Common Stock having a Fair Market Value equal to the amount of tax to be withheld. For this purpose, Fair Market Value shall be
determined as of the date on which the amount of tax to be withheld is determined (and any fractional share amount shall be settled
in cash).


 


3.3 Restrictions 


 





3.3.1 If the Committee shall at any time
determine that any consent (as hereinafter defined) is necessary or desirable as a condition of, or in connection with, the granting
of any award under the Plan, the issuance or purchase of shares or other rights thereunder, or the taking of any other action thereunder
(each such action being hereinafter referred to as a “plan action”), then such plan action shall not be taken, in whole
or in part, unless and until such consent shall have been effected or obtained to the full satisfaction of the Committee.


 


3.3.2 The term “consent” as used
herein with respect to any plan action means (a) any and all listings, registrations or qualifications in respect thereof upon
any securities exchange or under any federal, state or local law, rule or regulation, (b) any and all written agreements and representations
by the grantee with respect to the disposition of shares, or with respect to any other matter, which the Committee shall deem necessary
or desirable to comply with the terms of any such listing, registration or qualification or to obtain an exemption from the requirement
that any such listing, qualification or registration be made and (c) any and all consents, clearances and approvals in respect
of a plan action by any governmental or other regulatory bodies.


 


3.4 Non-assignability 


 


Except to the extent otherwise provided in
the applicable Plan Agreement, no award or right granted to any person under the Plan shall be assignable or transferable other
than by will or by the laws of descent and distribution, and all such awards and rights shall be exercisable during the life of
the grantee only by the grantee or the grantee’s legal representative.


 


3.5 Notification of Election Under Code Section 83(b)


 


If any grantee shall, in connection with
the acquisition of shares of the Common Stock under the Plan, make the election permitted under section 83(b) of the Code (that
is, an election to include in gross income in the year of transfer the amounts specified in section 83(b)), such grantee shall
notify the Company of such election within 10 days of filing notice of the election with the Internal Revenue Service, in addition
to any filing and notification required pursuant to regulations issued under the authority of Code section 83(b).


 


3.6 Notification Upon Disqualifying Disposition 


 


If any grantee shall make any disposition
of shares of the Common Stock issued pursuant to the exercise of an incentive stock option under the circumstances described in
section 421(b) of the Code (relating to certain disqualifying dispositions), such grantee shall notify the Company of such disposition
within 10 days thereof.


 


3.7 Adjustment Upon Changes in Stock 


 


3.7.1 Shares Available for Grants.
In the event of any change in the number of shares of Stock outstanding by reason of any stock dividend or split, reverse stock
split, recapitalization, merger, consolidation, combination or exchange of shares or similar corporate change, the maximum number
of shares of the Common Stock with respect to which the Committee may grant awards under Article II hereof, as described in Section
1.5.1, and the individual annual limit described in Section 1.5.2, shall be appropriately adjusted by the Committee. In the event
of any change in the number of shares of the Common Stock outstanding by reason of any other event or transaction, the Committee
may, but need not, make such adjustments in the number and class of shares of the Common Stock with respect to which awards: (i)
may be granted under Article II hereof and (ii) granted to any one employee of the Company or a subsidiary during any one calendar
year, in each case as the Committee may deem appropriate, unless such adjustment would cause any award that would otherwise qualify
as performance based compensation with respect to a “162(m) covered employee” (as defined in Section 162 of the Code),
to cease to so qualify.


 






    	 



    	 



    

 


3.7.2 Outstanding Restricted Stock and
Restricted Stock Units. Unless the Committee in its absolute discretion otherwise determines, any securities or other property
(including dividends paid in cash) received by a grantee with respect to a share of restricted stock, the issue date with respect
to which occurs prior to such event, but which has not vested as of the date of such event, as a result of any dividend, stock
split, reverse stock split, recapitalization, merger, consolidation, combination, exchange of shares or otherwise will not vest
until such share of restricted stock vests, and shall be promptly deposited with the Company or otherwise treated as was the certificate
for the underlying share of restricted stock, pursuant to Section 2.6.3 hereof.


 


The Committee may, in its absolute discretion,
adjust any grant of shares of restricted stock, the issue date with respect to which has not occurred as of the date of the occurrence
of any of the following events, or any grant of restricted stock units, to reflect any dividend, stock split, reverse stock split,
recapitalization, merger, consolidation, combination, exchange of shares or similar corporate change as the Committee may deem
appropriate to prevent the enlargement or dilution of rights of grantees.


 


3.7.3 Outstanding Options and Stock Appreciation
Rights — Increase or Decrease in Issued Shares Without Consideration. Subject to any required action by the
stockholders of the Company, in the event of any increase or decrease in the number of issued shares of Stock resulting from a
subdivision or consolidation of shares of Stock or the payment of a stock dividend (but only on the shares of Stock), or any other
increase or decrease in the number of such shares effected without receipt of consideration by the Company, the Committee shall
proportionally adjust the number of shares of the Common Stock subject to each outstanding option and stock appreciation right,
and the exercise price-per-share of the Common Stock of each such option and stock appreciation right.


 


3.7.4 Outstanding Options and Stock Appreciation
Rights — Certain Mergers. Subject to any required action by the stockholders of the Company, in the event that
the Company shall be the surviving corporation in any merger or consolidation (except a merger or consolidation as a result of
which the holders of shares of Stock receive securities of another corporation), each option and stock appreciation right outstanding
on the date of such merger or consolidation shall pertain to and apply to the securities which a holder of the number of shares
of the Common Stock subject to such option or stock appreciation right would have received in such merger or consolidation.


 


3.7.5 Outstanding Options and Stock Appreciation
Rights — Certain Other Transactions. In the event of (i) a dissolution or liquidation of the Company, (ii)
a sale of all or substantially all of the Company’s assets, (iii) a merger or consolidation involving the Company in which
the Company is not the surviving corporation or (iv) a merger or consolidation involving the Company in which the Company is the
surviving corporation but the holders of shares of the Common Stock receive securities of another corporation and/or other property,
including cash, the Committee shall, in its absolute discretion, have the power to:


 


	 	(i)	cancel, effective immediately prior to the occurrence of such event, each option and stock appreciation right outstanding immediately prior to such event (whether or not then exercisable), and, in full consideration of such cancellation, pay to the grantee to whom such option or stock appreciation right was granted an amount in cash, for each share of the Common Stock subject to such option or stock appreciation right, respectively, equal to the excess of (x) the value, as determined by the Committee in its absolute discretion, of the property (including cash) received by the holder of a share of the Common Stock as a result of such event over (y) the exercise price of such option or stock appreciation right; 


  


	 	(ii)	cancel, effective immediately prior to the occurrence of such event, each option and stock appreciation right outstanding immediately prior to such event (whether or not then exercisable), and, in full consideration of such cancellation, pay to the grantee to whom such option or stock appreciation right was granted, for each share of the Common Stock subject to such option or stock appreciation right, respectively, the property (including cash) received by the holder of a share of the Common Stock as a result of such event; or 


  


	 	(iii)	provide for the exchange of each option and stock appreciation right outstanding immediately prior to such event (whether or not then exercisable) for an option on or stock appreciation right with respect to, as appropriate, some or all of the property which a holder of the number of shares of the Common Stock subject to such option or stock appreciation right would have received and, incident thereto, make an equitable adjustment as determined by the Committee in its absolute discretion in the exercise price of the option or stock appreciation right, or the number of shares or amount of property subject to the option or stock appreciation right or, if appropriate, provide for a cash payment to the grantee to whom such option or stock appreciation right was granted in partial consideration for the exchange of the option or stock appreciation right.


 





3.7.6 Outstanding Options and Stock Appreciation
Rights — Other Changes. In the event of any change in the capitalization of the Company or a corporate change
other than those specifically referred to in Sections 3.7.3, 3.7.4 or 3.7.5 hereof, the Committee may, in its absolute discretion,
make such adjustments in the number and class of shares subject to options and stock appreciation rights outstanding on the date
on which such change occurs and in the per-share exercise price of each such option and stock appreciation right as the Committee
may consider appropriate to prevent dilution or enlargement of rights. In addition, if and to the extent the Committee determines
it is appropriate, the Committee may elect to cancel each option and stock appreciation right outstanding immediately prior to
such event (whether or not then exercisable), and, in full consideration of such cancellation, pay to the grantee to whom such
option or stock appreciation right was granted an amount in cash, for each share of the Common Stock subject to such option or
stock appreciation right, respectively, equal to the excess of (i) the Fair Market Value of the Common Stock on the date of such
cancellation over (ii) the exercise price of such option or stock appreciation right.


 






    	 



    	 



    

 


3.7.7 No Other Rights. Except as expressly
provided in the Plan, no grantee shall have any rights by reason of any subdivision or consolidation of shares of stock of any
class, the payment of any dividend, any increase or decrease in the number of shares of stock of any class or any dissolution,
liquidation, merger or consolidation of the Company or any other corporation. Except as expressly provided in the Plan, 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 of shares of the Common Stock subject to an award or
the exercise price of any option or stock appreciation right. Except as otherwise provided in Section 3.7, no adjustment shall
be made for dividends, distributions or other rights (whether ordinary or extraordinary, and whether in cash, securities or other
property) for which the record date is prior to the date such stock certificate is issued.


 


3.8 Right of Discharge Reserved 


 


Nothing in the Plan or in any Plan Agreement
shall confer upon any grantee the right to continue in the employ of the Company or affect any right which the Company may have
to terminate such employment.


 


3.9 Nature of Payments 


 


3.9.1 Any and all grants of awards and issuances
of shares of the Common Stock under the Plan shall be in consideration of services performed for the Company by the grantee.


 


3.9.2 All such grants and issuances shall
constitute a special incentive payment to the grantee and shall not be taken into account in computing the amount of salary or
compensation of the grantee for the purpose of determining any benefits under any pension, retirement, profit-sharing, bonus, life
insurance or other benefit plan of the Company or under any agreement between the Company and the grantee, unless such plan or
agreement specifically provides otherwise.


 


3.10 Non-Uniform Determinations 


 


The Committee’s determinations under
the Plan need not be uniform and may be made by it selectively among persons who receive, or are eligible to receive, awards under
the Plan (whether or not such persons are similarly situated). Without limiting the generality of the foregoing, the Committee
shall be entitled, among other things, to make non-uniform and selective determinations, and to enter into non-uniform and selective
Plan agreements, as to (a) the persons to receive awards under the Plan, (b) the terms and provisions of awards under the Plan,
and (c) the treatment of leaves of absence pursuant to Section 1.6.4.


 


3.11 Other Payments or Awards 


 


Nothing contained in the Plan shall be deemed
in any way to limit or restrict the Company from making any award or payment to any person under any other plan, arrangement or
understanding, whether now existing or hereafter in effect.


 


3.12 Section Headings 


 


The section headings contained herein are
for the purpose of convenience only and are not intended to define or limit the contents of the sections.


 


3.13 Effective Date and Term of Plan 


 





3.13.1 The Plan was adopted by the Board
on September 27, 2010, subject to approval by the Company’s stockholders. The Plan was amended on May 15, 2015, subject to
approval by the Company’s stockholders to increase the number of shares of the Common Stock which may be transferred pursuant
to awards granted under the Plan by 2,000,000 to 8,000,000. All awards under the Plan prior to such stockholder approval are subject
in their entirety to such approval. If such approval is not obtained prior to the first anniversary of the date of adoption of
the Plan, the Plan and all awards thereunder shall terminate on that date.


 


3.13.2 Unless sooner terminated by the Board,
the Plan will terminate on the close of business on September 27, 2020, ten years from the original effective date. All awards
made under the Plan prior to its termination shall remain in effect until such awards have been satisfied or terminated in accordance
with the terms and provisions of the Plan and the applicable Plan Agreements.


 


3.14 Governing Law 


 


All rights and obligations under the Plan
shall be construed and interpreted in accordance with the laws of the State of Nevada, without giving effect to principles of conflict
of laws.