Exhibit 10.1


 


 


ECO INNOVATION
GROUP, INC.


2022 STOCK
INCENTIVE AND EQUITY COMPENSATION PLAN


 


ARTICLE I

PURPOSE


The purpose of this Eco Innovation
Group, Inc. 2022 Stock Incentive and Compensation Plan (the “Plan”), is to enhance the profitability and value of Eco
Innovation Group, Inc.  (the “Company”) for the benefit of its stockholders by enabling the Company (i) to
offer employees and consultants of the Company and its Affiliates stock based incentives and other equity interests in the Company, thereby
creating a means to raise the level of stock ownership by employees and consultants in order to attract, retain and reward such employees
and consultants and strengthen the mutuality of interests between employees or consultants and the Company’s stockholders and (ii)
to offer equity based awards to non-employee directors thereby attracting, retaining and rewarding such non-employee directors and strengthening
the mutuality of interests between non-employee directors and the Company’s stockholders.


 


ARTICLE II

DEFINITIONS


For purposes of this Plan, the following terms shall
have the following meanings:


 


2.1 “Affiliate”
shall mean, other than the Company, each of the following:  (i) any Subsidiary; (ii) any Parent; (iii) any corporation,
trade or business (including, without limitation, a partnership or limited liability company) which is directly or indirectly controlled
fifty percent (50%) or more (whether by ownership of stock, assets or an equivalent ownership interest or voting interest) by the Company;
and (iv) any other entity, approved by the Committee as an “Affiliate” under the Plan, in which the Company has a material
equity interest.


2.2 “Award”
shall mean any award under this Plan of any Stock Option, Stock Appreciation Right, Restricted Stock or Restricted Stock Units.  All
Awards shall be confirmed by, and subject to the terms of, a written agreement executed by the Company and the Participant.


2.3 “Black-out
Period” means any black-out period imposed by the Company that restricts the purchase and sale of the Company’s securities
by designated persons for a period of time; for greater certainty a “Black-out Period” includes any quarterly or special black-out
period imposed by the Company but excludes any cease trade order imposed against the Company or an Insider.


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


2.5 “Cause”
shall mean, with respect to a Participant’s Termination of Employment or Termination of Consultancy, unless otherwise determined
by the Committee at grant, or, if no rights of the Participant are reduced, thereafter:  (i) in the case where there is
no employment agreement, consulting agreement, change in control agreement or similar agreement in effect between the Company or an Affiliate
and the Participant at the time of the grant of the Award (or where there is such an agreement but it does not define “cause”
(or words of like import)), termination due to a Participant’s dishonesty, fraud, insubordination, willful misconduct, refusal to
perform services (for any reason other than illness or incapacity) or materially unsatisfactory performance of his or her duties for the
Company as determined by the Committee in its sole discretion; or (ii) in the case where there is an employment agreement, consulting
agreement, change in control agreement or similar agreement in effect between the Company or an Affiliate and the Participant at the time
of the grant of the Award that defines “cause” (or words of like import), as defined under such agreement; provided, however,
that with regard to any agreement that conditions “cause” on occurrence of a change in control, such definition of “cause”
shall not apply until a change in control actually takes place and then only with regard to a termination thereafter.  With
respect to a Participant’s Termination of Directorship, Cause shall mean an act or failure to act that constitutes “cause”
for removal of a director under applicable state corporate law.


2.6 “Change in
Control” shall have the meaning set forth in Article X.


 






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2.7 “Code”
shall mean the Internal Revenue Code as amended.  Any reference to any section of the Code shall also be a reference to any
successor provision and any Treasury regulation thereunder.


2.8 “Committee”
shall mean a committee of the Board that may be appointed from time to time by the Board.  To the extent determined appropriate
by the Board, or to the extent required under Rule 16b-3, such committee shall consist of not less than two  non-employee directors,
each of whom shall be a non-employee director as defined in Rule 16b-3.  To the extent that no Committee exists which has the
authority to administer the Plan, the functions of the Committee shall be exercised by the Board.  If for any reason the appointed
Committee does not meet the requirements of Rule 16b-3, such noncompliance with the requirements of Rule 16b-3 shall not affect the validity
of the awards, grants, interpretations or other actions of the Committee.  Notwithstanding the foregoing, with respect to the
application of the Plan to non-employee directors, Committee shall mean the Board.


2.9
“Common Stock” shall mean the Company’s common stock, $0.001 par value per share, of the Company. 


2.10 “Company”
shall mean Eco Innovation Group, Inc., a Nevada corporation.


2.11 “Consultant”
shall mean any advisor or consultant to the Company or an Affiliate who is eligible pursuant to Article V to be granted Awards under
this Plan.


2.1 2“Disability”
shall mean total and permanent disability, as defined in Section 22(e)(3) of the Code.


2.13 “Eligible
Employees” shall mean the employees, non-employee directors or Consultants of the Company and its Affiliates who are eligible
pursuant to Article V to be granted Awards under this Plan.  Notwithstanding the foregoing, with respect to the grant of
Incentive Stock Options, Eligible Employees shall mean the employees of the Company, its Subsidiaries and their Parents who are eligible
pursuant to Article V to be granted Incentive Stock Options under the Plan and shall not mean non-employee directors or Consultants.


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


2.15 “Fair Market
Value” for purposes of this Plan, shall be determined in good faith by the Committee in accordance with the provisions of  Treasury
Regulation 1.409A-1(b)(5)(iv)(A) and shall mean, as of any given date:  (i) if the Common Stock is listed on a national
securities exchange, foreign stock exchange or quoted on the Nasdaq National Market or Nasdaq SmallCap Market, the closing price of the
Common Stock on the trading market for the Common Stock, as selected by the Committee, on the trading date preceding the given date, as
reported by the exchange or Nasdaq, as the case may be, (ii) if the Common Stock is not listed on a national securities exchange, foreign
stock exchange or quoted on the Nasdaq National Market or Nasdaq SmallCap Market, but is traded in the over-the-counter market, the closing
bid price for the Common Stock on such date, as reported by the OTC Markets Group or similar publisher of such quotations; and (iii) if
the fair market value of the Common Stock cannot be determined pursuant to clause (i) or (ii) above, such price as the Committee
shall determine, in good faith, taking into account such facts and circumstances deemed to be material by the Committee to the value of
the Common Stock.  For purposes of the grant of any Award, the applicable date shall be the date on which the Award is granted
or, in the case of a Stock Appreciation Right, the date a notice of exercise is received by the Committee or, if the sale of Common Stock
shall not have been reported or quoted on such date, the first day prior thereto on which the sale of Common Stock was reported or quoted.  If
the Fair Market Value is determined by a closing price on a foreign stock exchange that reports in a currency other than US dollars, the
Fair Market Value shall be converted into US dollars at the most recently published applicable noon exchange rate of the Federal Reserve
Bank of New York at the time of the conversion.


2.16 “Good Reason”
with respect to a Participant’s Termination of Employment or Termination of Consultancy shall mean (i) in the case where there
is no employment agreement, consulting agreement, change in control agreement or similar agreement in effect between the Company or an
Affiliate and the Participant at the time of the grant of the Award (or where there is such an agreement but it does not define “Good
Reason” (or words of like import)), or where “Good Reason” is not otherwise determined by the Committee at grant, or,
if no rights of the Participant are reduced, thereafter, a voluntary termination due to “good reason,” as the Committee, in
its sole discretion, decides to treat as a Good Reason termination, or (ii) in the case where there is an employment agreement, consulting
agreement, change in control agreement or similar agreement in effect between the Company or an Affiliate and the Participant at the time
of the grant of the Award that defines “good reason” (or words of like import), as defined under such agreement; provided,
however, that with regard to any agreement that conditions “good reason” on occurrence of a change in control, such definition
of “good reason” shall not apply until a change in control actually takes place and then only with regard to a termination
thereafter.






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2.17 “Incentive
Stock Option” shall mean any Stock Option awarded under this Plan intended to be and designated as an “Incentive Stock
Option” within the meaning of Section 422 of the Code.


2.18 “Insider”
means an individual who is, on the relevant date, an officer, director or more than ten percent (10%) beneficial owner of any class of
the Company’s equity securities that is registered pursuant to Section 12 of the Exchange Act, all as defined under Section 16 of
the Exchange Act.


2.19 “Limited
Stock Appreciation Right” shall mean an Award of a limited Tandem Stock Appreciation Right or a Non-Tandem Stock Appreciation
Right made pursuant to Section 8.5 of this Plan.


2.20 “Non-Qualified
Stock Option” shall mean any Stock Option awarded under this Plan that is not an Incentive Stock Option.


2.21 “Non-Tandem
Stock Appreciation Right” shall mean a Stock Appreciation Right entitling a Participant to receive an amount in cash or Common
Stock (as determined by the Committee in its sole discretion) equal to the excess of:  (i) the Fair Market Value of a share
of Common Stock as of the date such right is exercised, over (ii) the aggregate exercise price of such right.


2.22 “Parent”
shall mean any parent corporation of the Company within the meaning of Section 424(e) of the Code.


2.23 “Participant”
shall mean the following persons to whom an Award has been made pursuant to this Plan:  Eligible Employees of, and Consultants
to, the Company and its Affiliates and non-employee directors of the Company.


2.24
“Restricted Stock” shall mean an award of shares of Common Stock, which may be registered securities, under the Plan
that is subject to restrictions under Article VII. 


2.25 “Restricted
Stock Units” shall mean an award of units under the Plan that is subject to restrictions under Article VII.


2.26 “Restriction
Period” shall have the meaning set forth in Subsection 7.3(a) with respect to Restricted Stock or Restricted Stock Units, as
applicable, for Eligible Employees.


2.27 “Retirement”
with respect to a Participant’s Termination of Employment or Termination of Consultancy, shall mean a Termination of Employment
or Termination of Consultancy without Cause from the Company by a Participant who has attained (i) at least age eighty (80).  With
respect to a Participant’s Termination of Directorship, Retirement shall mean the failure to stand for reelection or the failure
to be reelected after a Participant has attained age eighty (80).


2.28 “Rule 16b-3”
shall mean Rule 16b-3 under Section 16(b) of the Exchange Act as then in effect or any successor provisions.


2.29 “Specified
Employee” shall mean, with respect to the Company or any of its Subsidiaries, and determined as of the date of an individual’s
separation from service from the Company (1) any officer during the prior twelve (12) month period with annual compensation in excess
of $170,000 (as adjusted from time to time under the Code), (2) a 5-percent owner of the Company’s outstanding equity stock during
the prior twelve (12) month period or (3) a 1-percent owner of the Company’s outstanding equity stock during the prior (12) month
period with annual compensation in excess of $150,000, provided that the Company or any of its Subsidiaries is publicly-traded within
the meaning of Code Section 409A on the date of determination.






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2.30 “Stock Appreciation
Right” shall mean the right pursuant to an Award granted under Article VIII.  A Tandem Stock Appreciation Right
shall mean the right to surrender to the Company all (or a portion) of a Stock Option in exchange for an amount in cash or stock equal
to the excess of (i) the Fair Market Value, on the date such Stock Option (or such portion thereof) is surrendered, of the Common
Stock covered by such Stock Option (or such portion thereof), over (ii) the aggregate exercise price of such Stock Option (or such portion
thereof).  A Non-Tandem Stock Appreciation Right shall mean the right to receive an amount in cash or stock equal to the excess
of (x) the Fair Market Value of a share of Common Stock on the date such right is exercised, over (y) the aggregate exercise
price of such right, other than on surrender of a Stock Option.


2.31 “Stock Option”
or “Option” shall mean any Option to purchase shares of Common Stock granted to Eligible Employees or Consultants pursuant
to Article VI.


2.32 “Subsidiary”
shall mean any corporation that is defined as a subsidiary corporation in Section 424(f) of the Code.


2.33 “Ten Percent
Stockholder” shall mean a person owning Common Stock of the Company possessing more than ten percent (10%) of the total combined
voting power of all classes of stock of the Company, its Subsidiaries and/or its Parents in the manner provided under Section 422
of the Code.


2.34 “Termination
of Consultancy” shall mean, with respect to an individual, that the individual is no longer acting as a Consultant to the Company
or an Affiliate.  In the event an entity shall cease to be an Affiliate, there shall be deemed a Termination of Consultancy
of any individual who is not otherwise a Consultant of the Company or another Affiliate at the time the entity ceases to be an Affiliate.  In
the event that a Consultant becomes an Eligible Employee upon the termination of his consultancy, the Committee, in its sole and absolute
discretion, may determine that no Termination of Consultancy shall be deemed to occur until such time as such Consultant is no longer
a Consultant or an Eligible Employee.


2.35 “Termination
of Directorship” shall mean, with respect to a non-employee director, that the non-employee director has ceased to be a director
of the Company.


2.36 “Termination
of Employment,” except as provided in the next sentence, shall mean (i) a termination of service (for reasons other than
a military or personal leave of absence granted by the Company) of a Participant from the Company and its Affiliates; or (ii) when an
entity which is employing a Participant ceases to be an Affiliate, unless the Participant thereupon becomes employed by the Company or
another Affiliate.  In the event that an Eligible Employee becomes a Consultant upon the termination of his employment, the
Committee, in its sole and absolute discretion, may determine that no Termination of Employment shall be deemed to occur until such time
as such Eligible Employee is no longer an Eligible Employee or a Consultant.  The Committee may otherwise define Termination
of Employment in the Option grant or, if no rights of the Participant are reduced, may otherwise define Termination of Employment thereafter,
including, but not limited to, defining Termination of Employment with regard to entities controlling, under common control with or controlled
by the Company rather than just the Company and its Affiliates and/or entities that provide substantial services to the Company or its
Affiliates to which the Participant has transferred directly from the Company or its Affiliates at the request of the Company.


2.37 “Transfer”
or “Transferred” shall mean anticipate, alienate, attach, sell, assign, pledge, encumber, charge or otherwise transfer.






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ARTICLE III

ADMINISTRATION


3.1
THE COMMITTEE.  The Plan shall be administered and interpreted by the Committee or if no Committee, by the Board of Directors. 


3.2 AWARDS.  The
Committee shall have full authority to:


(a) to select the Eligible
Employees and Consultants to whom Stock Options, Stock Appreciation Rights, Restricted Stock or Restricted Stock Units may from time to
time be granted hereunder;


(b) to determine whether
and to what extent Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units or any combination thereof are to
be granted hereunder to one or more Eligible Employees or Consultants;


(c) to determine, in accordance
with the terms of this Plan, the number of shares of Common Stock to be covered by each Award to an Eligible Employee or Consultant granted
hereunder;


(d) to determine the terms
and conditions, not inconsistent with the terms of this Plan, of any Award granted hereunder to an Eligible Employee or Consultant (including,
but not limited to, the exercise or purchase price (if any), any restriction or limitation, any vesting schedule or acceleration thereof,
or any forfeiture restrictions or waiver thereof, regarding any Stock Option or other Award, and the shares of Common Stock relating thereto,
based on such factors, if any, as the Committee shall determine, in its sole discretion);


(e) to modify, extend
or renew a Stock Option, subject to Article XI hereof, provided, however, that if a Stock Option is modified, extended or renewed
and thereby deemed to be the issuance of a new Stock Option under the Code or the applicable accounting rules, the exercise price of such
Stock Option may continue to be the original exercise price even if less than the Fair Market Value of the Common Stock at the time of
such modification, extension or renewal;


(f) to determine whether
a Stock Option is an Incentive Stock Option or Non-Qualified Stock Option, whether a Stock Appreciation Right is a Tandem Stock Appreciation
Right or Non-Tandem Stock Appreciation Right;


(g) to determine whether
to require an Eligible Employee or Consultant, as a condition of the granting of any Award, to not sell or otherwise dispose of shares
acquired pursuant to the exercise of an Option or as an Award for a period of time as determined by the Committee, in its sole discretion,
following the date of the acquisition of such Option or Award; and


(h) to grant Awards under
the Plan as a conversion from, and replacement of, comparable stock options, stock appreciation rights, restricted stock or restricted
stock units held by employees of another entity who become Eligible Employees of, or Consultants to, the Company or an Affiliate as the
result of a merger or consolidation of the employing entity with the Company or an Affiliate, or as the result of the acquisition by the
Company of property or stock of the employing corporation.  The Company may direct that replacement Awards be granted on such
terms and conditions as the Committee considers appropriate in the circumstances, including, without limitation that Non-Qualified Stock
Options shall be granted in lieu of Incentive Stock Options.


3.3 GUIDELINES.  Subject
to the terms and conditions of the Plan, the Committee shall have the authority to adopt, alter and repeal such administrative rules,
guidelines and practices governing this Plan and perform all acts, including the delegation of its administrative responsibilities, as
it shall, from time to time, deem advisable; to construe and interpret the terms and provisions of this Plan and any Award issued under
this Plan (and any agreements relating thereto); and to otherwise supervise the administration of this Plan.  The Committee
may correct any defect, supply any omission or reconcile any inconsistency in this Plan or in any agreement relating thereto in the manner
and to the extent it shall deem necessary to carry this Plan into effect, but only to the extent any such action would be permitted under
the applicable provisions of Rule 16b-3 (if any).  The Committee may adopt special guidelines and provisions for persons who
are residing in, or subject to the taxes of countries other than the United States to comply with applicable tax and securities laws.  If
or to the extent applicable, this Plan is intended to comply with the applicable requirements of Rule 16b-3 and shall be limited, construed
and interpreted in a manner so as to comply therewith.






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3.4 DECISIONS FINAL.  Any
decision, interpretation or other action made or taken in good faith by or at the direction of the Company, the Board, or the Committee
(or any of its members) arising out of or in connection with the Plan shall be within the absolute discretion of all and each of them,
as the case may be, and shall be final, binding and conclusive on the Company and all employees and Participants and their respective
heirs, executors, administrators, successors and assigns.  The Committee shall not be bound to any standards of uniformity or
similarity of action, interpretation or conduct in the discharge of its duties hereunder, regardless of the apparent similarity of the
matters coming before it.


3.5 RELIANCE ON COUNSEL.  The
Company, the Board or the Committee may consult with legal counsel, who may be counsel for the Company or other counsel, with respect
to its obligations or duties hereunder, or with respect to any action or proceeding or any question of law, and shall not be liable with
respect to any action taken or omitted by it in good faith pursuant to the advice of such counsel.


3.6 PROCEDURES.  If
the Committee is appointed, the Board may designate one of the members of the Committee as chairman and the Committee shall hold meetings,
subject to the bylaws of the Company, at such times and places as it shall deem advisable.  A majority of the Committee members
shall constitute a quorum.  All determinations of the Committee shall be made by a majority of its members.  Any decision
or determination reduced to writing and signed by all Committee members in accordance with the bylaws of the Company shall be fully effective
as if it had been made by a vote at a meeting duly called and held.  The Committee shall keep minutes of its meetings and shall
make such rules and regulations for the conduct of its business as it shall deem advisable.


3.7 DESIGNATION OF CONSULTANTS--LIABILITY.


(a) The Committee may
designate employees of the Company and professional advisors to assist the Committee in the administration of the Plan and may grant authority
to employees to execute agreements or other documents on behalf of the Committee.


(b) The Committee may
employ such legal counsel, consultants and agents as it may deem desirable for the administration of the Plan and may rely upon any opinion
received from any such counsel or consultant and any computation received from any such consultant or agent.  Expenses incurred
by the Committee or Board in the engagement of any such counsel, consultant or agent shall be paid by the Company.  The Committee,
its members and any person designated pursuant to paragraph (a) above shall not be liable for any action or determination made in
good faith with respect to the Plan.


(c) To the maximum extent
permitted by applicable law, no officer of the Company or member or former member of the Committee or of the Board shall be liable for
any action or determination made in good faith with respect to the Plan or any Award granted under it.  To the maximum extent
permitted by applicable law and the Certificate of Incorporation and bylaws of the Company and to the extent not covered by insurance,
each employee of the Company and member or former member of the Committee or of the Board shall be indemnified and held harmless by the
Company against any cost or expense (including reasonable fees of counsel reasonably acceptable to the Company) or liability (including
any sum paid in settlement of a claim with the approval of the Company), and advanced amounts necessary to pay the foregoing at the earliest
time and to the fullest extent permitted, arising out of any act or omission to act in connection with the Plan, except to the extent
arising out of such officer’s, member’s or former member’s own fraud or bad faith.  Such indemnification shall
be in addition to any rights of indemnification the employees, officers, directors or members or former officers, directors or members
may have under applicable law or under the Certificate of Incorporation or bylaws of the Company or Affiliate.  Notwithstanding
anything else herein, this indemnification will not apply to the actions or determinations made by an individual with regard to Awards
granted to him or her under this Plan.






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ARTICLE IV

SHARE AND OTHER LIMITATIONS


4.1 SHARES.


(a) GENERAL LIMITATION.  The
aggregate number of shares of Common Stock which may be issued or used for reference purposes under this Plan or with respect to which
other Awards may be granted shall not exceed 75,000,000 shares (subject to any increase or decrease pursuant to Section 4.2) which
may be either authorized and unissued Common Stock or Common Stock held in or acquired for the treasury of the Company.


Subject to adjustment
as provided in Section 4.2, in no event shall more than an aggregate of 25,000,000 shares of Common Stock be issued pursuant to the exercise
of Incentive Stock Options granted under the Plan, including shares issued pursuant to the exercise of Incentive Stock Options that are
the subject of disqualifying dispositions within the meaning of Sections 421, 422 and 423 of the Code.


If any Option or Stock Appreciation Right granted under this
Plan expires, terminates or is canceled for any reason without having been exercised in full or, with respect to Options, the Company
repurchases any Option pursuant to Section 6.3(f), the number of shares of Common Stock underlying the repurchased Option, and/or
the number of shares of Common Stock underlying any unexercised Stock Appreciation Right or Option shall again be available for the purposes
of Awards under the Plan.  If a Tandem Stock Appreciation Right or a Limited Stock Appreciation Right is granted in tandem with
an Option, such grant shall only apply once against the maximum number of shares of Common Stock which may be issued under this Plan.  In
determining the number of shares of Common Stock available for Awards other than Awards of Incentive Stock Options, if Common Stock has
been delivered or exchanged by a Participant as full or partial payment to the Company for the exercise price or for withholding taxes,
in connection with the exercise of a Stock Option or the number shares of Common Stock otherwise deliverable has been reduced for full
or partial payment for the exercise price or for withholding taxes, the number of shares of Common Stock delivered, exchanged or reduced
shall again be available for purposes of Awards under this Plan.


In the event Awards are granted to employees or Consultants
pursuant to Section 3.2(h), the aggregate number of shares of Common Stock available under the Plan for Awards other than Incentive
Stock Options shall be increased by the number of shares of Common Stock which may be issued or used for reference with respect to those
Awards granted pursuant to Section 3.2(h).  The maximum number of shares of Common Stock which may be issued under this
Plan with respect to Incentive Stock Options shall not be increased (subject to any increase or decrease pursuant to Section 4.2).


Notwithstanding anything else contained herein to the contrary,
the Committee shall be prohibited from granting any Award if the aggregate number of shares of Common Stock (i) issued to Insiders
of the Company within any one year period, or (ii) issuable to Insiders at any time, under this Plan and any other security based compensation
arrangement of the Company, could exceed 10% of the Company’s shares of Common Stock issued and outstanding, on a non-diluted basis,
at the time of the grant of the Award.


4.2 CHANGES.


(a) The existence of the
Plan and the Awards granted hereunder shall not affect in any way the right or power of the Board or the stockholders of the Company to
make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s capital structure or its business,
any merger or consolidation of the Company or its Affiliates, any issue of bonds, debentures, preferred or prior preference stock ahead
of or affecting Common Stock, the dissolution or liquidation of the Company or its Affiliates, any sale or transfer of all or part of
its assets or business or any other corporate act or proceeding.


(b) In the event of any
such change in the capital structure or business of the Company by reason of any stock dividend or distribution, stock split or reverse
stock split, recapitalization, reorganization, merger, consolidation, split-up, combination or exchange of shares, distribution with respect
to its outstanding Common Stock or capital stock other than Common Stock, sale or transfer of all or part of its assets or business, reclassification
of its capital stock, or any similar change affecting the Company’s capital structure or business and the Committee determines an
adjustment is appropriate under the Plan, then the aggregate number and kind of shares which thereafter may be issued under this Plan,
the number and kind of shares or other property (including cash) to be issued upon exercise of an outstanding Option or other Awards granted
under this Plan and the purchase price thereof shall be appropriately adjusted consistent with such change in such manner as the Committee
may deem equitable to prevent substantial dilution or enlargement of the rights granted to, or available for, Participants under this
Plan or as otherwise necessary to reflect the change, and any such adjustment determined by the Committee shall be binding and conclusive
on the Company and all Participants and employees and their respective heirs, executors, administrators, successors and assigns.






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(c) Fractional shares
of Common Stock resulting from any adjustment in Options or Awards pursuant to Section 4.2(a) or (b) shall be aggregated until,
and eliminated at, the time of exercise by rounding-down for fractions less than one-half (1/2) and rounding-up for fractions equal to
or greater than one-half (1/2).  No cash settlements shall be made with respect to fractional shares eliminated by rounding.  Notice
of any adjustment shall be given by the Committee to each Participant whose Option or Award has been adjusted and such adjustment (whether
or not such notice is given) shall be effective and binding for all purposes of the Plan.


(d) In the event of a
merger or consolidation in which the Company is not the surviving entity or in the event of any transaction that results in the acquisition
of substantially all of the Company’s outstanding Common Stock by a single person or entity or by a group of persons and/or entities
acting in concert, or in the event of the sale or transfer of all of the Company’s assets (all of the foregoing being referred to
as “Acquisition Events”), then the Committee may, in its sole discretion, terminate all outstanding Options and Stock
Appreciation Rights of Eligible Employees and Consultants, effective as of the date of the Acquisition Event, by delivering notice of
termination to each such Participant at least twenty (20) days prior to the date of consummation of the Acquisition Event; provided,
that during the period from the date on which such notice of termination is delivered to the consummation of the Acquisition Event, each
such Participant shall have the right to exercise in full all of his or her Options and Stock Appreciation Rights that are then outstanding
(without regard to any limitations on exercisability otherwise contained in the Option or Award Agreements) but contingent on occurrence
of the Acquisition Event, and, provided that, if the Acquisition Event does not take place within a specified period after giving such
notice for any reason whatsoever, the notice and exercise shall be null and void.


(e) If an Acquisition
Event occurs, to the extent the Committee does not terminate the outstanding Options and Stock Appreciation Rights pursuant to this Section 4.2(d),
then the provisions of Section 4.2(b) shall apply.


ARTICLE V

ELIGIBILITY


5.1 All employees, non-employee
directors, and Consultants to the Company and its Affiliates are eligible to be granted Non-Qualified Stock Options, Stock Appreciation
Rights, Restricted Stock and Restricted Stock Units, subject to any filing requirements, under this Plan.  All employees of
the Company, its Subsidiaries and its Parents are also eligible to be granted Incentive Stock Options under the Plan.  Eligibility
under this Plan shall be determined by the Committee.


ARTICLE VI

STOCK OPTION GRANTS


6.1 OPTIONS.  Each
Stock Option granted hereunder shall be one of two types: (i) an Incentive Stock Option intended to satisfy the requirements
of Section 422 of the Code or (ii) a Non-Qualified Stock Option.


6.2 GRANTS.  The
Committee shall have the authority to grant to any Eligible Employee, who is not a non-employee director or Consultant, one or more Incentive
Stock Options, Non-Qualified Stock Options, or both types of Stock Options (in each case with or without Stock Appreciation Rights).  The
Committee shall have the authority to grant to any non-employee director or Consultant one or more Non-Qualified Stock Options (with or
without Stock Appreciation Rights).  To the extent that any Stock Option does not qualify as an Incentive Stock Option (whether
because of its provisions or the time or manner of its exercise or otherwise), such Stock Option or the portion thereof which does not
qualify, shall constitute a separate Non-Qualified Stock Option.  Notwithstanding any other provision of this Plan to the contrary
or any provision in an agreement evidencing the grant of a Stock Option to the contrary, any Stock Option granted to an Eligible Employee
of an Affiliate (other than an Affiliate which is a Parent or a Subsidiary) or to any Consultant shall be a Non-Qualified Stock Option.


6.3 TERMS OF OPTIONS.  Options
granted under this Plan shall be subject to the following terms and conditions, shall be subject to Section 3.2 hereof and the other
provisions of this Plan, and shall be in such form and contain such additional terms and conditions, not inconsistent with the terms of
this Plan, as the Committee shall deem desirable:






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(a) OPTION PRICE.  The
option price per share of Common Stock purchasable under either an Incentive Stock Option or Non-Qualified Stock Option shall be determined
by the Committee at the time of grant but shall not be less than 100% of the Fair Market Value of one share of Common Stock at the time
of grant, provided that the exercise price of an Incentive Stock Option granted to an Eligible Employee who is a Ten Percent Shareholder  and
who is not a non-employee director or Consultant shall not be less than 110% of the Fair Market Value of one share of Common Stock at
the time of grant.  Notwithstanding the foregoing, if an Option is modified, extended or renewed and, thereby, deemed to be
the issuance of a new Option under the Code, the exercise price of an Option may continue to be the original exercise price even if less
than the Fair Market Value, or 110% of the Fair Market Value as the case may be, of the Common Stock at the time of such modification,
extension or renewal.


(b) OPTION TERM.  The
term of each Stock Option shall be fixed by the Committee, provided that no Stock Option shall be exercisable more than five (5) years
after the date the Option is granted, and provided further that no Incentive Stock Option granted to a Ten Percent Shareholder
shall be exercisable more than five (5) years after the date the Option is granted.  If any Stock Options are set to expire
during any Black-out Period which would prohibit the option holder from exercising the Stock Option during that Black-out Period, then
in that event the option term shall be extended for an additional ten (10) business days beyond the end of any Black-out Period to
permit the option holder to exercise the Stock Option (the “Black-out Expiration Term”).  The Black-out Expiration
Term is fixed and shall not be subject to the discretion of the Board of Directors or the Committee.


(c) EXERCISABILITY.  Stock
Options shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the Committee at
grant.  If the Committee provides, in its discretion, that any Stock Option is exercisable subject to certain limitations (including,
without limitation, that it is exercisable only in installments or within certain time periods), the Committee may waive such limitations
on the exercisability at any time at or after grant in whole or in part (including, without limitation, that the Committee may waive the
installment exercise provisions or accelerate the time at which Options may be exercised), based on such factors, if any, as the Committee
shall determine, in its sole discretion.


(d) METHOD OF EXERCISE.  Subject
to whatever installment exercise and waiting period provisions apply under subsection (c) above, Stock Options may be exercised in
whole or in part at any time during the Option term, by giving written notice of exercise to the Company specifying the number of shares
of Common Stock to be purchased.  At or after grant, payment in full or in part may be made at the election of the optionee
as follows:  (i) in cash or by check, bank draft or money order payable to the order of the Company; (ii) if the Common
Stock is traded on a national securities exchange, the Nasdaq Stock Market, Inc. or quoted on a national quotation system sponsored by
the National Association of Securities Dealers, through a “cashless exercise” procedure whereby the Participant delivers irrevocable
instructions to a broker to deliver promptly to the Company an amount equal to the purchase price, (iii) in the form of Common Stock owned
by the Participant (and for which the Participant has good title free and clear of any liens and encumbrances) or (iv) in the form of
Restricted Stock; provided, however, that in each case, such payment is equivalent to on the Fair Market Value of the Common Stock on
the payment date as determined by the Committee (without regard to any forfeiture restrictions applicable to such Restricted Stock).  No
shares of Common Stock shall be issued until full payment, (and if payment is by installments all payments have been received), as provided
herein, therefor has been made or provided for.  If payment in full or in part has been made in the form of Restricted Stock,
an equivalent number of shares of Common Stock issued on exercise of the Option shall be subject to the same restrictions and conditions,
during the remainder of the Restriction Period, applicable to the Restricted Stock surrendered therefor.


(e) INCENTIVE STOCK OPTION
LIMITATIONS.  To the extent that the aggregate Fair Market Value (determined as of the time of grant) of the Common Stock with
respect to which Incentive Stock Options are exercisable for the first time by an Eligible Employee during any calendar year under the
Plan and/or any other stock option plan of the Company or any Subsidiary or Parent exceeds $100,000, such Options shall be treated as
Options which are not Incentive Stock Options.


Should the foregoing provision not be necessary in
order for the Stock Options to qualify as Incentive Stock Options, or should any additional provisions be required, the Committee may
amend the Plan accordingly, without the necessity of obtaining the approval of the stockholders of the Company.


 






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(f) BUY OUT AND SETTLEMENT
PROVISIONS.  The Committee may at any time on behalf of the Company offer to buy out an Option previously granted, based on
such terms and conditions as the Committee shall establish and communicate to the Participant at the time that such offer is made.


(g) FORM, MODIFICATION,
EXTENSION AND RENEWAL OF OPTIONS.  Subject to the terms and conditions and within the limitations of the Plan, an Option shall
be evidenced by such form of agreement or grant as is approved by the Committee, and the Committee may modify, extend or renew outstanding
Options granted under the Plan (provided that the rights of a Participant are not reduced without his consent), or accept the surrender
of outstanding Options (up to the extent not theretofore exercised) and authorize the granting of new Options in substitution therefor
(to the extent not theretofore exercised.


(h) DEFERRED DELIVERY
OF COMMON SHARES.  The Committee may in its discretion permit Participants to defer delivery of Common Stock acquired pursuant
to a Participant’s exercise of an Option in accordance with the terms and conditions established by the Committee.


6.4 TERMINATION OF EMPLOYMENT.  The
following rules apply with regard to Options upon the Termination of Employment or Termination of Consultancy of a Participant:


(a) TERMINATION BY REASON
OF DEATH.  If a Participant’s Termination of Employment or Termination of Consultancy is by reason of death, any Stock
Option held by such Participant, unless otherwise determined by the Committee at grant or, if no rights of the Participant’s estate
are reduced, thereafter, may be exercised, to the extent exercisable at the Participant’s death, by the legal representative of
the estate, at any time within a period of one (1) year from the date of such death, but in no event beyond the expiration of the
stated term of such Stock Option.


(b) TERMINATION BY REASON
OF DISABILITY.  If a Participant’s Termination of Employment or Termination of Consultancy is by reason of Disability,
any Stock Option held by such Participant, unless otherwise determined by the Committee at grant or, if no rights of the Participant are
reduced, thereafter, may be exercised, to the extent exercisable at the Participant’s termination, by the Participant (or the legal
representative of the Participant’s estate if the Participant dies after termination) at any time within a period of one (1) year
from the date of such termination, but in no event beyond the expiration of the stated term of such Stock Option.


(c) TERMINATION BY REASON
OF RETIREMENT.  If a Participant’s Termination of Employment or Termination of Consultancy is by reason of Retirement,
any Non-Qualified  Stock Option held by such Participant, unless otherwise determined by the Committee at grant, or, if no rights
of the Participant are reduced, thereafter, shall be fully vested and may thereafter be exercised by the Participant at any time within
a period of one (1) year from the date of such termination, but in no event beyond the expiration of the stated term of such Non-Qualified
Stock Option; provided, however, that, if the Participant dies within such exercise period, any unexercised Non-Qualified Stock Option
held by such Participant shall thereafter be exercisable, to the extent to which it was exercisable at the time of death, for a period
of one (1) year (or such other period as the Committee may specify at grant or, if no rights of the Participant’s estate are
reduced, thereafter) from the date of such death, but in no event beyond the expiration of the stated term of such Non-Qualified Stock
Option.  Any Incentive Stock Option may be exercised as provided in Section 6.4(f) below.


(d) INVOLUNTARY TERMINATION
WITHOUT CAUSE OR TERMINATION FOR GOOD REASON.  If a Participant’s Termination of Employment or Termination of Consultancy
is by involuntary termination without Cause or for Good Reason, any Stock Option held by such Participant, unless otherwise determined
by the Committee at grant or, if no rights of the Participant are reduced, thereafter, may be exercised, to the extent exercisable at
termination, by the Participant at any time within a period of ninety (90) days from the date of such termination, but in no event
beyond the expiration of the stated term of such Stock Option.


(e) TERMINATION WITHOUT
GOOD REASON.  If a Participant’s Termination of Employment or Termination of Consultancy is voluntary but without Good
Reason and occurs prior to, or more than ninety (90) days after, the occurrence of an event which would be grounds for Termination
of Employment or Termination of Consultancy by the Company for Cause (without regard to any notice or cure period requirements), any Stock
Option held by such Participant, unless otherwise determined by the Committee at grant or, if no rights of the Participant are reduced,
thereafter, may be exercised, to the extent exercisable at termination, by the Participant at any time within a period of thirty (30) days
from the date of such termination, but in no event beyond the expiration of the stated term of such Stock Option.






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(f) OTHER TERMINATION.  Unless
otherwise determined by the Committee at grant or, if no rights of the Participant are reduced, thereafter, if a Participant’s Termination
of Employment or Termination of Consultancy is for any reason other than death, Disability, Retirement, Good Reason, involuntary termination
without Cause or voluntary termination as provided in subsection (e) above or due to Retirement in the case of Incentive Stock Options,
any Stock Option held by such Participant shall thereupon terminate and expire as of the date of termination, provided that (unless the
Committee determines a different period upon grant or, if no rights of the Participant are reduced, thereafter) in the event the termination
is for Cause or is a voluntary termination without Good Reason within ninety (90) days after occurrence of an event which would be
grounds for Termination of Employment or Termination of Consultancy by the Company for Cause (without regard to any notice or cure period
requirement), any Stock Option held by the Participant at the time of occurrence of the event which would be grounds for Termination of
Employment or Termination of Consultancy by the Company for Cause shall be deemed to have terminated and expired upon occurrence of the
event which would be grounds for Termination of Employment or Termination of Consultancy by the Company for Cause.


ARTICLE VII

STOCK AWARDS


7.1 STOCK AWARDS.  Shares
of Restricted Stock or Restricted Stock Units may be issued to Eligible Employees or Consultants either alone or in addition to other
Awards granted under the Plan.  The Committee shall determine the eligible persons to whom, and the time or times at which,
grants of Restricted Stock or Restricted Stock Units will be made, the number of shares to be awarded, the price (if any) to be paid by
the recipient (subject to Section 7.2), the time or times within which such Awards may be subject to forfeiture, the vesting schedule
and rights to acceleration thereof, and all other terms and conditions of the Awards.


7.2 AWARDS AND CERTIFICATES.  The
prospective Participant selected to receive an Award of Restricted Stock or Restricted Stock Units shall not have any rights with respect
to such Award, unless and until such Participant has delivered a fully executed copy of the applicable agreement evidencing the Award
(the “Stock Award Agreement” or “Restricted Stock Award Agreement,” as applicable) to the Company
and has otherwise complied with the applicable terms and conditions of such Award.  Further, such Award shall be subject to
the following conditions:


(a) PURCHASE PRICE.  The
purchase price of Restricted Stock shall be fixed by the Committee.


(b) ACCEPTANCE.  Awards
of Restricted Stock or Restricted Stock Units must be accepted within a period of sixty (60) days (or such shorter period as the
Committee may specify at grant) after the Award date, by executing a Stock Award Agreement or Restricted Stock Unit Award Agreement (as
applicable) and by paying whatever price (if any) the Committee has designated thereunder.


(c) LEGEND.  If
the Company should issue to a Plan Participant restricted shares of common stock, the Company may place an appropriate restrictive legend
on the Shares so issued.


(d) CUSTODY.  The
Committee may require that any stock certificates evidencing restricted shares be held in custody by the Company until the restrictions
thereon shall have lapsed, and that, as a condition of any Award of Restricted Stock, the Participant shall have delivered a duly signed
stock power, endorsed in blank, relating to the Common Stock covered by such Award.  The Committee shall maintain a bookkeeping
ledger account that reflects the number of Restricted Stock Units credited under the Plan for the benefit of a Participant.


7.3 RESTRICTIONS AND CONDITIONS
ON RESTRICTED STOCK AWARDS.  The shares of Restricted Stock awarded pursuant to this Plan shall be subject to Article IX
and the following restrictions and conditions:






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(a) RESTRICTION PERIOD;
VESTING AND ACCELERATION OF VESTING.  The Participant shall not be permitted to Transfer shares of Restricted Stock awarded
under this Plan during a period set by the Committee (the “Restriction Period”) commencing with the date of such Award,
as set forth in the Stock Award Agreement and such agreement shall set forth a vesting schedule and any events which would accelerate
vesting of the shares of Restricted Stock.  Within these limits, based on service, or other criteria determined by the Committee,
the Committee may provide for the lapse of such restrictions in installments in whole or in part, or may accelerate the vesting of all
or any part of any Award of Restricted Stock.


(b) RIGHTS AS STOCKHOLDER.  Except
as provided in this subsection (b) and subsection (a) above and as otherwise determined by the Committee, the Participant shall
have, with respect to the shares of Restricted Stock, all of the rights of a holder of shares of Common Stock of the Company including,
without limitation, the right to receive any dividends, the right to vote such shares and, subject to and conditioned upon the full vesting
of shares of Restricted Stock, the right to tender such shares.  Notwithstanding the foregoing, the payment of dividends shall
be deferred until, and conditioned upon, the expiration of the applicable Restriction Period, unless the Committee, in its sole discretion,
specifies otherwise at the time of the Award.


(c) LAPSE OF RESTRICTIONS.  If
and when the Restriction Period expires without a prior forfeiture of the Restricted Stock subject to such Restriction Period, the certificates
for such shares shall be delivered to the Participant.  All legends shall be removed from said certificates at the time of delivery
to the Participant except as otherwise required by applicable law.


(d) TERMINATION OF EMPLOYMENT
OR TERMINATION OF CONSULTANCY FOR RESTRICTED STOCK.  Subject to the applicable provisions of the Stock Award Agreement and this
Plan, upon a Participant’s Termination of Employment or Termination of Consultancy for any reason during the relevant Restriction
Period, all Restricted Stock still subject to restriction will be forfeited in accordance with the terms and conditions established by
the Committee at grant or thereafter.


7.4 RESTRICTIONS AND CONDITIONS
ON RESTRICTED STOCK UNIT AWARDS.  Restricted Stock Units awarded pursuant to this Plan shall be subject to Article IX and
the following restrictions and conditions:


(a) RESTRICTED STOCK UNIT
AWARD.  A Restricted Stock Unit Award shall be similar in nature to a Restricted Stock Award except that no Shares are actually
issued or transferred to the Participant until a later date specified in the applicable Award Agreement.  Each Restricted Stock
Unit shall have a value equal to the Fair Market Value of a Share.


(b) RESTRICTED STOCK UNIT
AWARD AGREEMENT.  Each Restricted Stock Unit Award shall be evidenced by an Award Agreement that contains any substantial risk
of forfeiture, transferability restrictions, form and time of payment provisions and other provisions not inconsistent with the Plan as
the Committee may specify.


(c) DIVIDEND EQUIVALENTS.  An
Award Agreement for a Restricted Stock Unit Award may specify that the Participant shall be entitled to the payment of dividends under
the Award.  Notwithstanding the foregoing, the payment of dividends shall be deferred until, and conditioned upon, the expiration
of the applicable Restriction Period, unless the Committee, in its sole discretion, specifies otherwise at the time of the Award.


(d) FORM OF PAYMENT UNDER
RESTRICTED STOCK UNIT AWARD.  Payment under a Restricted Stock Unit Award shall be made in either cash or Shares, or any combination
thereof, as specified in the applicable Award Agreement.


(e) TIME OF PAYMENT UNDER
RESTRICTED STOCK UNIT AWARD.  A Participant’s payment under a Restricted Stock Unit Award shall be made at such time as
specified in the applicable Award Agreement.  The Award Agreement shall specify that the payment will be made (1) by a date
that is no later than the date that is two and one-half (2 1/2) months after the end of the fiscal year in which the Restricted Stock
Unit Award payment is no longer subject to a substantial risk of forfeiture or (2) at a time that is permissible under Section 409A.






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(f) NO RIGHTS AS SHAREHOLDER.  Each
recipient of a Restricted Stock Unit Award shall have no rights of a shareholder with respect to any Shares underlying such Restricted
Stock Units until such date as the underlying Shares are issued.


(g) TERMINATION OF EMPLOYMENT
OR TERMINATION OF CONSULTANCY FOR RESTRICTED STOCK UNITS.  Subject to the applicable provisions of the Restricted Stock Unit
Award Agreement and this Plan, upon a Participant’s Termination of Employment or Termination of Consultancy for any reason during
the relevant Restriction Period, all Restricted Stock Units still subject to restriction will be forfeited in accordance with the terms
and conditions established by the Committee at grant or thereafter.


ARTICLE VIII

STOCK APPRECIATION RIGHTS


8.1 TANDEM STOCK APPRECIATION
RIGHTS.  Stock Appreciation Rights may be granted in conjunction with all or part of any Stock Option (a “Reference
Stock Option”) granted under this Plan (“Tandem Stock Appreciation Rights”).  In the case of a
Non-Qualified Stock Option, such rights may be granted either at or after the time of the grant of such Reference Stock Option.  In
the case of an Incentive Stock Option, such rights may be granted only at the time of the grant of such Reference Stock Option.


8.2 TERMS AND CONDITIONS
OF TANDEM STOCK APPRECIATION RIGHTS.  Tandem Stock Appreciation Rights shall be subject to such terms and conditions, not inconsistent
with the provisions of this Plan, as shall be determined from time to time by the Committee, including Article IX and the following:


(a) TERM.  A
Tandem Stock Appreciation Right or applicable portion thereof granted with respect to a Reference Stock Option shall terminate and no
longer be exercisable upon the termination or exercise of the Reference Stock Option, except that, unless otherwise determined by the
Committee, in its sole discretion, at the time of grant, a Tandem Stock Appreciation Right granted with respect to less than the full
number of shares covered by the Reference Stock Option shall not be reduced until and then only to the extent the exercise or termination
of the Reference Stock Option causes the number of shares covered by the Tandem Stock Appreciation Right to exceed the number of shares
remaining available and unexercised under the Reference Stock Option.


(b) EXERCISABILITY.  Tandem
Stock Appreciation Rights shall be exercisable only at such time or times and to the extent that the Reference Stock Options to which
they relate shall be exercisable in accordance with the provisions of Article VI and this Article VIII.


(c) METHOD OF EXERCISE.  A
Tandem Stock Appreciation Right may be exercised by an optionee by surrendering the applicable portion of the Reference Stock Option.  Upon
such exercise and surrender, the Participant shall be entitled to receive an amount determined in the manner prescribed in this Section 8.2.  Stock
Options which have been so surrendered, in whole or in part, shall no longer be exercisable to the extent the related Tandem Stock Appreciation
Rights have been exercised.


(d) PAYMENT.  Upon
the exercise of a Tandem Stock Appreciation Right a Participant shall be entitled to receive up to, but no more than, an amount in cash
and/or Common Stock (as chosen by the Committee in its sole discretion) equal in value to the excess of the Fair Market Value of one share
of Common Stock over the option price per share specified in the Reference Stock Option multiplied by the number of shares in respect
of which the Tandem Stock Appreciation Right shall have been exercised, with the Committee having the right to determine the form of payment.  If
the Committee elects to pay such amount to a Participant in Common Stock, such Common Stock shall be valued at Fair Market Value on the
day of exercise of the Tandem Stock Appreciation Right.


(e) DEEMED EXERCISE OF
REFERENCE STOCK OPTION.  Upon the exercise of a Tandem Stock Appreciation Right, the Reference Stock Option or part thereof
to which such Stock Appreciation Right is related shall be deemed to have been exercised for the purpose of the limitation set forth in
Article IV of the Plan on the number of shares of Common Stock to be issued under the Plan.






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8.3 NON-TANDEM STOCK APPRECIATION
RIGHTS.  Non-Tandem Stock Appreciation Rights may also be granted without reference to any Stock Options granted under this
Plan.


8.4 TERMS AND CONDITIONS
OF NON-TANDEM STOCK APPRECIATION RIGHTS.  Non-Tandem Stock Appreciation Rights shall be subject to such terms and conditions,
not inconsistent with the provisions of this Plan, as shall be determined from time to time by the Committee, including Article IX
and the following:


(a) TERM.  The
term of each Non-Tandem Stock Appreciation Right shall be fixed by the Committee, but shall not be greater than ten (10) years after
the date the right is granted.


(b) EXERCISABILITY.  Non-Tandem
Stock Appreciation Rights shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by
the Committee at grant.  If the Committee provides, in its discretion, that any such right is exercisable subject to certain
limitations (including, without limitation, that it is exercisable only in installments or within certain time periods), the Committee
may waive such limitation on the exercisability at any time at or after grant in whole or in part (including, without limitation, that
the Committee may waive the installment exercise provisions or accelerate the time at which rights may be exercised), based on such factors,
if any, as the Committee shall determine, in its sole discretion.


(c)
METHOD OF EXERCISE.  Subject to whatever installment exercise and waiting period provisions apply under subsection (b) above,
Non-Tandem Stock Appreciation Rights may be exercised in whole or in part at any time during the option term, by giving written notice
of exercise to the Company specifying the number of Non-Tandem Stock Appreciation Rights to be exercised. 


(d) PAYMENT.  Upon
the exercise of a Non-Tandem Stock Appreciation Right a Participant shall be entitled to receive, for each right exercised, up to, but
no more than, an amount in cash and/or Common Stock (as chosen by the Committee in its sole discretion) equal in value to the excess of
the Fair Market Value of one share of Common Stock on the date the right is exercised over the Fair Market Value of one (1) share
of Common Stock on the date the right was awarded to the Participant.  If the Committee elects to pay such amount to a Participant
in Common Stock, such Common Stock shall be valued at Fair Market Value as the day of exercise of the Non-Tandem Stock Appreciation Right.


8.5 LIMITED STOCK APPRECIATION
RIGHTS.  The Committee may, in its sole discretion, grant Tandem and Non-Tandem Stock Appreciation Rights either as a general
Stock Appreciation Right or as a Limited Stock Appreciation Right.  Limited Stock Appreciation Rights may be exercised only
upon a Change in Control (to the extent provided in an Award agreement granting such Limited Stock Appreciation Rights) or the occurrence
of such other event as the Committee may, in its sole discretion, designate at the time of grant or thereafter.  Upon the exercise
of Limited Stock Appreciation Rights, except as otherwise provided in an Award agreement, the Participant shall receive in cash or Common
Stock, as determined by the Committee, an amount equal to the amount (1) set forth in Section 8.2(d) with respect to Tandem
Stock Appreciation Rights or (2) set forth in Section 8.4(d) with respect to Non-Tandem Stock Appreciation Rights.


8.6 TERMINATION OF EMPLOYMENT
OR TERMINATION OF CONSULTANCY.  The following rules apply with regard to Stock Appreciation Rights upon the Termination of Employment
or Termination of Consultancy of a Participant:


(a) TERMINATION BY DEATH.  If
a Participant’s Termination of Employment or Termination of Consultancy is by reason of death, any Stock Appreciation Right held
by such Participant, unless otherwise determined by the Committee at grant or if no rights of the Participant’s estate are reduced,
thereafter, may be exercised, to the extent exercisable at the Participant’s death, by the legal representative of the estate, at
any time within a period of one (1) year from the date of such death or until the expiration of the stated term of such Stock Appreciation
Right, whichever period is the shorter.


(b) TERMINATION BY REASON
OF DISABILITY.  If a Participant’s Termination of Employment or Termination of Consultancy is by reason of Disability,
any Stock Appreciation Right held by such participant, unless otherwise determined by the Committee at grant or, if no rights of the Participant
are reduced, thereafter, may be exercised, to the extent exercisable at the Participant’s termination, by the Participant (or the
legal representative of the Participant’s estate if the Participant dies after termination) at any time within a period of one (1) year
from the date of such termination or until the expiration of the stated term of such Stock Appreciation Right, whichever period is the
shorter.






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(c) TERMINATION BY REASON
OF RETIREMENT.  If a Participant’s Termination of Employment or Termination of Consultancy is by reason of Retirement,
any Stock Appreciation Right held by such Participant, unless otherwise determined by the Committee at grant or, if no rights of the Participant
are reduced, thereafter, shall be fully vested and may thereafter be exercised by the Participant at any time within a period of one (1) year
from the date of such termination or until the expiration of the stated term of such right, whichever period is the shorter; provided,
however, that, if the Participant dies within such one (1) year period, any unexercised Non-Tandem Stock Appreciation Right held
by such Participant shall thereafter be exercisable, to the extent to which it was exercisable at the time of death, for a period of one
(1) year (or such other period as the Committee may specify at grant or if no rights of the Participant are reduced, thereafter)
from the date of such death or until the expiration of the stated term of such right, whichever period is the shorter.


(d) INVOLUNTARY TERMINATION
WITHOUT CAUSE OR TERMINATION FOR GOOD REASON.  If a Participant’s Termination of Employment or Termination of Consultancy
is by involuntary termination without Cause or for Good Reason, any Stock Appreciation Right held by such participant, unless otherwise
determined by the Committee at grant or if no rights of the participant are reduced, thereafter, may be exercised, to the extent exercisable
at termination, by the Participant at any time within a period of ninety (90) days from the date of such termination or until the
expiration of the stated term of such right, whichever period is shorter.


(e) TERMINATION WITHOUT
GOOD REASON.  If a Participant’s Termination of Employment or Termination of Consultancy is voluntary but without Good
Reason and occurs prior to, or more than ninety (90) days after, the occurrence of an event which would be grounds for Termination
of Employment or Termination of Consultancy by the Company for Cause (without regard to any notice or cure period requirements), any Stock
Appreciation Right held by such Participant, unless greater or lesser exercise rights are provided by the Committee at the time of grant
or, if no rights of the participant are reduced, thereafter, may be exercised, to the extent exercisable at termination, by the Participant
at any time within a period of thirty (30) days from the date of such termination, but in no event beyond the expiration of the stated
term of such Stock Appreciation Right.


(f) OTHER TERMINATION.  Unless
otherwise determined by the Committee at grant, or, if no rights of the Participant are reduced thereafter, if a Participant’s Termination
of Employment or Termination of Consultancy is for any reason other than death, Disability, Retirement, Good Reason, involuntary termination
without Cause or voluntary termination as provided in subsection (e) above, any Stock Appreciation Right held by such Participant
shall thereupon terminate or expire as of the date of termination, provided, that (unless the Committee determines a different period
upon grant, or, if no rights of the Participant are reduced, thereafter) in the event the termination is for Cause or is a voluntary termination
as provided in subsection (e) above, within ninety (90) days after occurrence of an event which would be grounds for Termination
of Employment or Termination of Consultancy by the Company for Cause (without regard to any notice or cure period requirement), any Stock
Appreciation Right held by the Participant at the time of the occurrence of the event which would be grounds for Termination of Employment
or Termination of Consultancy by the Company for Cause shall be deemed to have terminated and expired upon occurrence of the event which
would be grounds for Termination of Employment or Termination of Consultancy by the Company for Cause.


 






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ARTICLE IX

NON-TRANSFERABILITY


Except as provided in the last sentence of this Article IX,
no Stock Option or Stock Appreciation Right granted to an Employee or Consultant shall be Transferable by the Participant otherwise than
by will or by the laws of descent and distribution.  All Stock Options and all Stock Appreciation Rights granted to an Employee
or Consultant shall be exercisable, during the Participant’s lifetime, only by the Participant.  Tandem Stock Appreciation
Rights shall be Transferable, to the extent permitted above, only with the underlying Stock Option.  Shares of Restricted Stock
or Restricted Stock Units under Article VII may not be Transferred prior to the date on which shares are issued, or, if later, the
date on which any applicable restriction lapses.  No Award shall, except as otherwise specifically provided by law or herein,
be Transferable in any manner, and any attempt to Transfer any such Award shall be void, and no such Award shall in any manner be liable
for or subject to the debts, contracts, liabilities, engagements or torts of any person who shall be entitled to such Award, nor shall
it be subject to attachment or legal process for or against such person.  All Stock Options granted to non-employee directors
shall be Transferable solely to such non-employee director’s principal employer (other than the Company or an Affiliate) at the
time of grant if the terms of such non-employee director’s employment so require.  Notwithstanding the foregoing, the
Committee may determine at the time of grant or thereafter, that a Non-Qualified Stock Option that is otherwise not transferable pursuant
to this Article IX is transferable in whole or part and in such circumstances, and under such conditions, as specified by the Committee.


 


ARTICLE X

CHANGE IN CONTROL PROVISIONS


10.1 BENEFITS.  In
the event of a Change in Control of the Company (as defined below), except as otherwise provided by the Committee upon the grant of an
Award, each Participant shall have the following benefits:


(a) Unless otherwise provided
in the applicable award agreement, all outstanding Options and the related Tandem Stock Appreciation Rights and Non-Tandem Stock Appreciation
Rights of such Participant granted prior to the Change in Control shall be fully vested and immediately exercisable in their entirety.  The
Committee, in its sole discretion, may provide for the purchase of any such Stock Options by the Company for an amount of cash equal to
the excess of the Change in Control Price (as defined below) of the shares of Common Stock covered by such Stock Options, over the aggregate
exercise price of such Stock Options.  For purposes of this Section 10.1, “Change in Control Price”
shall mean the higher of (i) the highest price per share of Common Stock paid in any transaction related to a Change in Control of
the Company, or (ii) the highest Fair Market Value per share of Common Stock at any time during the sixty (60) day period preceding
a Change in Control.


(b) Unless otherwise provided
in the applicable award agreement, the restrictions to which any shares of Restricted Stock or Restricted Stock Units of such Participant
granted prior to the Change in Control are subject shall lapse as if the applicable Restriction Period had ended upon such Change in Control.


(c) Notwithstanding anything
else herein, the Committee may, in its sole discretion, provide for accelerated vesting of an Award upon a Termination of Employment during
the Pre-Change in Control Period.  Unless otherwise determined by the Committee, the “Pre-Change in Control Period”
shall mean the one hundred eighty (180) day period prior to a Change in Control.


10.2 CHANGE IN CONTROL.  A
“Change in Control” shall be deemed to have occurred:


(a) upon any “person”
as such term is used in Sections 13(d) and 14(d) of the Exchange Act (other than the Company, any trustee or other fiduciary holding
securities under any employee benefit plan of the Company, or any company owned, directly or indirectly, by the stockholders of the Company
in substantially the same proportions as their ownership of Common Stock of the Company, becoming the owner (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly, of securities of the Company representing forty percent (40%) or more of the combined
voting power of the Company’s then outstanding securities (including, without limitation, securities owned at the time of any increase
in ownership);


(b) during any period
of two consecutive years, individuals who at the beginning of such period constitute the Board of Directors, and any new director (other
than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in paragraph (a),
(c), or (d) of this section) or a director whose initial assumption of office occurs as a result of either an actual or threatened
election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual or threatened
solicitation of proxies or consents by or on behalf of a person other than the Board of Directors of the Company whose election by the
Board of Directors or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the
directors then still in office who either were directors at the beginning of the two-year period or whose election or nomination for election
was previously so approved, cease for any reason to constitute at least a majority of the Board of Directors;






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(c)
upon the 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) more than fifty percent (50%) of the combined voting power of the voting
securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; provided, however, that
a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no person (other than
those covered by the exceptions in (a) above) acquires more than forty percent (40%) of the combined voting power of the Company’s
then outstanding securities shall not constitute a Change in Control of the Company; or 


(d) upon the stockholder’s
of the Company approval of a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of
all or substantially all of the Company’s assets other than the sale of all or substantially all of the assets of the Company to
a person or persons who beneficially own, directly or indirectly, at least fifty percent (50%) or more of the combined voting power of
the outstanding voting securities of the Company at the time of the sale.


ARTICLE XI

TERMINATION OR AMENDMENT OF THE PLAN


11.1 TERMINATION OR AMENDMENT.  Notwithstanding
any other provision of this Plan, the Board may at any time, and from time to time, amend, in whole or in part, any or all of the provisions
of the Plan, or suspend or terminate it entirely, retroactively or otherwise, without stockholder approval.  By way of example
and without limiting the generality of the foregoing, the Board of Directors reserves the right, without stockholder approval, to (i) make
amendments of a clerical nature that clarify language or understanding of the terms of the Plan, (ii) amend the vesting provisions of
a Stock Option or the Plan, (iii) amend the provisions with respect to termination or death of a Participant, including but not limited
to the length of time to exercise a Stock Option upon termination or death, (iv) add a deferred or restricted share unit or any other
provision which results in Participants receiving Common Stock while no cash consideration is received by the Company; (v) change
the method of calculating a minimum exercise price per Common Stock for Stock Options under Section 6.3 of the Plan; and (vi) adjust
accordingly the number of shares of Common Stock available under the Plan, the Common Stock subject to any Award and the exercise price
of the Common Stock subject to Stock Options as a result of the events described in Section 4.2(b) of the Plan.  Notwithstanding
the foregoing:


(a) unless otherwise required
by law or specifically provided herein, the rights of a Participant with respect to Awards granted prior to such amendment, suspension
or termination, may not be impaired without the consent of such Participant; and


(b) stockholder approval
shall be required, only if and to the extent required by the rules of a stock exchange on which the Company’s Common Stock is listed
for trading, the applicable provisions of Rule 16b-3 or, if and to the extent required, under the applicable provisions of Section 422
of the Code, for an amendment which would (i) except as permitted in Section 4.1(a), increase the aggregate number of shares
of Common Stock that may be issued under this Plan; (ii) change the classification of employees, Consultants, directors and non-employee
directors eligible to receive Awards under this Plan; (iii) decrease the minimum option price of any Stock Option; (iv) extend the maximum
option period under Section 6.3; (v) change any rights under the Plan with regard to non-employee directors; or (vi) require
stockholder approval in order for the Plan to continue to comply with the applicable provisions, if any, of Rule 16b-3, any applicable
state law, or, with regard to Incentive Stock Options, Section 422 of the Code.


(c) The Committee may
amend the terms of any Award theretofore granted, prospectively or retroactively, but, subject to Article IV above or as otherwise
specifically provided herein, no such amendment or other action by the Committee shall impair the rights of any holder without the holder’s
consent.






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ARTICLE XII

UNFUNDED PLAN


This Plan is intended to constitute an “unfunded”
plan for incentive compensation.  With respect to any payments as to which a Participant has a fixed and vested interest but
which are not yet made to a Participant by the Company, nothing contained herein shall give any such Participant any rights that are greater
than those of a general creditor of the Company.


ARTICLE XIII

GENERAL PROVISIONS


13.1 LEGEND.  The
Committee may require each person receiving shares pursuant to an Award under the Plan to represent to and agree with the Company in writing
that the Participant is acquiring the shares without a view to distribution thereof.  In addition to any legend required by
this Plan, the certificates for such shares may include any legend which the Committee deems appropriate to reflect any restrictions on
Transfer.  All certificates for shares of Common Stock delivered under the Plan shall be subject to such stock transfer orders
and other restrictions as the Committee may deem advisable under the rules, regulations and other requirements of the Securities and Exchange
Commission, any stock exchange upon which the Common Stock is then listed or any national securities association system upon whose system
the Common Stock is then quoted, any applicable federal or state securities law, and any applicable corporate law, and the Committee may
cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.


13.2 OTHER PLANS.  Nothing
contained in this Plan shall prevent the Board from adopting other or additional compensation arrangements, subject to stockholder approval
if such approval is required; and such arrangements may be either generally applicable or applicable only in specific cases.


13.3 NO RIGHT TO EMPLOYMENT/DIRECTORSHIP.  Neither
this Plan nor the grant of any Award hereunder shall give any Participant or other employee any right with respect to continuance of employment
by the Company or any Affiliate, nor shall there be a limitation in any way on the right of the Company or any Affiliate by which an employee
is employed to terminate his employment at any time.  Neither this Plan nor the grant of any Award hereunder shall impose any
obligations on the Company to retain any Participant as a director nor shall it impose on the part of any Participant any obligation to
remain as a director of the Company.


13.4 WITHHOLDING OF TAXES.  The
Company shall have the right to deduct from any payment to be made to a Participant, or to otherwise require, prior to the issuance or
delivery of any shares of Common Stock or the payment of any cash hereunder, payment by the Participant of, any Federal, state or local
taxes required by law to be withheld.  Upon the vesting of Restricted Stock Units or Restricted Stock, or upon making an election
under Code Section 83(b), a Participant shall pay all required withholding to the Company.  The Committee may permit any
such withholding obligation with regard to any Participant to be satisfied by reducing the number of shares of Common Stock otherwise
deliverable or by delivering shares of Common Stock already owned.  Any fraction of a share of Common Stock required to satisfy
such tax obligations shall be disregarded and the amount due shall be paid instead in cash by the Participant.


13.5 LISTING AND OTHER
CONDITIONS.  If at any time counsel to the Company shall be of the opinion that any sale or delivery of shares of Common Stock
pursuant to an Award is or may in the circumstances be unlawful or result in the imposition of excise taxes on the Company under the statutes,
rules or regulations of any applicable jurisdiction, the Company shall have no obligation to make such sale or delivery, or to make any
application or to effect or to maintain any qualification or registration under the Securities Act of 1933, as amended, or otherwise with
respect to shares of Common Stock or Awards, and the right to exercise any Option shall be suspended until, in the opinion of said counsel,
such sale or delivery shall be lawful or will not result in the imposition of excise taxes on the Company.


13.6 GOVERNING LAW.  This
Plan shall be governed and construed in accordance with the laws of the state of incorporation of the Company (regardless of the law that
might otherwise govern under applicable principles of conflict of laws).






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13.7 CONSTRUCTION.  Wherever
any words are used in this Plan in the masculine gender they shall be construed as though they were also used in the feminine gender in
all cases where they would so apply, and wherever any words are used herein in the singular form they shall be construed as though they
were also used in the plural form in all cases where they would so apply.  To the extent applicable, the Plan shall be limited,
construed and interpreted in a manner so as to comply with the applicable requirements of Rule 16b-3; however, noncompliance with Rule
16b-3 shall have no impact on the effectiveness of a Stock Option granted under the Plan.


13.8 OTHER BENEFITS.  No
Award payment under this Plan shall be deemed compensation for purposes of computing benefits under any retirement plan of the Company
or its subsidiaries nor affect any benefits under any other benefit plan now or subsequently in effect under which the availability or
amount of benefits is related to the level of compensation.


13.9 COSTS.  The
Company shall bear all expenses included in administering this Plan, including expenses of issuing Common Stock pursuant to any Awards
hereunder.


13.10 NO RIGHT TO SAME
BENEFITS.  The provisions of Awards need not be the same with respect to each Participant, and such Awards to individual Participants
need not be the same in subsequent years.


13.11 DEATH/DISABILITY.  The
Committee may in its discretion require the transferee of a Participant to supply it with written notice of the Participant’s death
or Disability and to supply it with a copy of the will (in the case of the Participant’s death) or such other evidence as the Committee
deems necessary to establish the validity of the transfer of an Award.  The Committee may also require the agreement of the
transferee to be bound by all of the terms and conditions of the Plan.


13.12 SECTION 16(b) OF
THE EXCHANGE ACT.  All elections and transactions under the Plan by persons subject to Section 16 of the Exchange Act involving
shares of Common Stock are intended to comply with any applicable condition under Rule 16b-3.  The Committee may establish and
adopt written administrative guidelines, designed to facilitate compliance with Section 16(b) of the Exchange Act, as it may deem
necessary or proper for the administration and operation of the Plan and the transaction of business thereunder.


13.13 CODE SECTION 409A
COMPLIANCE.  Notwithstanding any other provision of this Plan to the contrary, all Awards under this Plan that are subject to
Code Section 409A shall be designed and administered in a manner that does not result in the imposition of tax or penalties under Code
Section 409A.  Accordingly, Awards under this Plan that are subject to Code Section 409A shall comply with the following requirements,
as applicable.


(a)
DISTRIBUTION TO SPECIFIED EMPLOYEES UPON SEPARATION FROM SERVICE.  To the extent that payment under an Award which is subject
to Code Section 409A is due to a Specified Employee on account of the Specified Employee’s Separation from Service from the Company
or its Affiliate or Subsidiary, such payment shall be delayed until the first day of the seventh (7th)
month following such Separation from Service (or as soon as practicable thereafter).  The Committee, in its discretion, may
provide in the Award document for the payment of interest at a rate set by the Committee for such six-month period.  In the
event that a payment under an Award is exempt from Code Section 409A, payment shall be made to a Specified Employee without any such six-month
delay.


(b) NO ACCELERATION OF
PAYMENT.  To the extent that an Award is subject to Code Section 409A, payment under such Award shall not be accelerated from
the date(s) specified in the Award documents as of the date of grant.


(c)
SUBSEQUENT DELAY IN PAYMENT.  To the extent that an Award is subject to Code Section 409A, payment under such Award shall not
be deferred beyond the dates specified in the Award document as of the date of grant, unless the Committee or Participant, as the case
may be, makes the decision to delay payment at least one year prior to the scheduled payment date, and payment is delayed at least five
(5) years. 






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13.14 SEVERABILITY OF
PROVISIONS.  If any provision of the Plan shall be held invalid or unenforceable, such invalidity or unenforceability shall
not affect any other provisions hereof, and the Plan shall be construed and enforced as if such provisions had not been included.


13.15 HEADINGS AND CAPTIONS.  The
headings and captions herein are provided for reference and convenience only, shall not be considered part of the Plan, and shall not
be employed in the construction of the Plan.


ARTICLE XIV

TERM OF PLAN


No Award shall be granted pursuant to the Plan on
or after the tenth anniversary of the earlier of the date the Plan is adopted or the date of stockholder approval, but Awards granted
prior to such tenth anniversary may extend beyond that date.


 


 


 


 



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