Document:

Exhibit 10.2

 

EDGE THERAPEUTICS, INC.

2010 EQUITY INCENTIVE PLAN

 

Section 1.Purpose; Definitions. The
purposes of the Edge Therapeutics, Inc. 2010 Equity Incentive Plan (the “Plan”) are to: (a) enable
Edge Therapeutics, Inc. (the “Corporation”) and its respective affiliated companies to recruit and
retain highly qualified personnel; (b) provide those employees, directors and consultants of the Corporation with an
incentive for productivity; and (c) provide those personnel with an opportunity to share in the growth and value of the
Corporation.

 

For
purposes of the Plan, the following capitalized words and phrases will be defined as set forth below, unless the context clearly
requires a different meaning:

 

(a)               
“Affiliate” means, with respect to a Person, a Person that directly or indirectly
controls, or is controlled by, or is under common control with such Person.

 

(b)              
“Award” means a grant of Options or Restricted Stock pursuant to the provisions
of the Plan.

 

(c)               
“Award Agreement” means, with respect to any particular Award, the written
document that sets forth the terms of that particular Award.

 

(d)              
“Board” means the Board of Directors of the Corporation, as constituted from
time to time; provided, however, that if the Board appoints a Committee to perform some or all of the Board's administrative functions
hereunder pursuant to Section 2, references in the Plan to the “Board” will be deemed to also refer to that
Committee in connection with matters to be performed by that Committee.

 

(e)               
“Cause” means (i) conviction of, or the entry of a plea of guilty or no contest to, a 
felony or any other crime that causes the Corporation or its Affiliates public disgrace
or disrepute, or adversely affects the Corporation's or its Affiliates' operations or financial performance or the relationship
the Corporation has with its Affiliates; (ii) gross negligence or willful misconduct with respect to the Corporation or any of
its Affiliates, including, without limitation, fraud, embezzlement, theft or proven dishonesty in the course of the subject employment
or engagement with the Corporation or its Affiliates; (iii) alcohol abuse or use of controlled drugs other than in accordance with
a physician's prescription; (iv) refusal, failure or inability to perform any material obligation or fulfill any duty (other than
any duty or obligation of the type described in clause (vi) below) to the Corporation (other than due to a Disability), which failure,
refusal or inability is not cured within 30 days after delivery of notice thereof; (v) material breach of any agreement with or
duty owed to the Corporation or any of its Affiliates; or (vi) any breach of any obligation or duty to the Corporation or any of
its Affiliates (whether arising by statute, common law, contract or otherwise) relating to confidentiality, noncompetition, nonsolicitation
or proprietary rights. Notwithstanding the foregoing, if a Participant and the Corporation (or any of its Affiliates) have entered
into an employment agreement, consulting agreement or other similar agreement that specifically defines “cause,”
then with respect to such Participant, “Cause” shall have the meaning
defined in that employment agreement, consulting agreement or other agreement.

 

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(f)               
 “Change of Control” means, with respect to any entity and except for the sole purpose of changing
domicile: (i) the sale, transfer, assignment or other disposition (including by merger or consolidation, but excluding any sales
by stockholders or other equity holders made as part of an underwritten public offering of the common stock of the entity) by stockholders
of the entity, in one transaction or a series of related transactions, of more than 50% of the voting power represented by the
then outstanding capital stock or other equity interests of the entity to one or more Persons, (ii) the sale of all or substantially
all the assets of the entity (other than a transfer of financial assets made in the ordinary course of business for the purpose
of securitization), or (iii) the liquidation or dissolution of the entity.

 

(g)              
“Code” means the Internal Revenue Code of 1986, as amended from time to time, and any successor
thereto.

 

(h)              
“Committee” means a committee appointed by the Board in accordance with Section 2 of the
Plan.

 

(i)                
“Director” means a member of the Board.

 

(j)                
“Disability” means a condition rendering a Participant Disabled.

 

(k)              
“Disabled” will have the same meaning as set forth in Section 22(e)(3) of the Code.

 

(l)                
“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

(m)            
“Fair Market Value” means, with respect to a Share, as of any date: (i) in the case of any determination
thereof other than in connection with a Change of Control, (x) if the Shares are not publicly traded, the value of such Shares
on that date, as determined by the Board after using a valuation method that complies with regulations for determining fair market
value as promulgated by the Internal Revenue Service; or (y) if the Shares are publicly traded, the last sale price of a Share
on the trading day immediately prior to the date of determination of fair market value or, if no sale is publicly reported on such
trading day, the last sale price of a Share prior to the date of determination of fair market value; and (ii) in the case of any
determination thereof in connection with a Change of Control, the value of a Share attributable to such Shares in the transaction
giving rise to the such Change of Control or, if no such value is so attributable, the value as determined by the Board after using
a valuation method that complies with regulations for determining fair market value as promulgated by the Internal Revenue Service.

 

(n)              
“Incentive Stock Option” means any Option intended to be and designated as an “Incentive
Stock Option” within the meaning of Section 422 of the Code.

 

(o)              
“Non-Employee Director” will have the meaning set forth in Rule 16b-3(b)(3)(i) promulgated by
the Securities and Exchange Commission under the Exchange Act, or any successor definition adopted by the Securities and Exchange
Commission; provided, however, that the Board or the Committee may, to the extent that it deems necessary to comply with Section
162(m) of the Code or regulations thereunder, require that each “Non-Employee Director” also be an “outside director”
as that term is defined in regulations under Section 162(m).

 

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(p)              
“Non-Qualified Stock Option” means any Option that is not an Incentive Stock Option.

 

(q)              
“Option” means any option to purchase Shares (including Restricted Stock, if the Board so determines) granted pursuant to Section 5 hereof.

 

(r)                
“Participant” means an employee, consultant, Director, or other service provider
of or to the Corporation or any of its respective Affiliates to whom an Award is granted.

 

(s)               
“Person” or “Persons” means an individual(s), partnership(s), corporation(s),
limited liability company(ies), trust(s), joint venture(s), unincorporated association(s), or other entity(ies) or association(s).

 

(t)                
“Restricted Stock” means Shares that are subject to restrictions pursuant to
Section 7 hereof.

 

(u)              
“Shares” means shares of the
Corporation's common stock, $0.001 par value per
share, subject to substitution or adjustment as provided in Section 3(c) hereof.

 

(v)              
“Stockholders’ Agreement” means any Stockholders' Agreement, Voting
Agreement, Right of First Refusal and Co-Sale Agreement or other similar agreement to be executed and delivered by a Participant
at the time of any event of an Award or upon the exercise of any Options subject to an Award, as determined by the Board, and in
such form from time to time prescribed by the Board, as amended from time to time.

 

(w)            
“Subsidiary” means, with respect to the Corporation, a subsidiary corporation,
whether now or hereafter existing, as defined in Sections 424(f) and (g) of the Code.

 

Section
2.Administration. The Plan will be administered by the Board; provided, however, that the Board may at any time
appoint a Committee to perform some or all of the Board's administrative functions hereunder; provided further, that the
authority of any Committee appointed pursuant to this Section 2 will be subject to such terms and conditions as the
Board may prescribe and will be coextensive with, and not in lieu of, the authority of the Board hereunder.

 

Subject
to the requirements of the Corporation's Bylaws (as the same may be amended and/or restated from time to time), Certificate of
Incorporation (as the same may be amended and/or restated from time to time) and/or any other agreement that governs the appointment
of Board committees, any Committee established under this Section 2 will be composed of not fewer than 2 members, each of
whom will serve for such period of time as the Board determines; provided, however, that if the Corporation has a class of securities
required to be registered under Section 12 of the Exchange Act, all members of any Committee established pursuant to this Section
2 will be Non-Employee Directors. From time to time the Board may increase the size of the Committee and appoint additional
members thereto, remove members (with or without cause) and appoint new members in substitution therefor, fill vacancies however
caused, or remove all members of the Committee and thereafter directly administer the Plan.

 

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Directors
who are eligible for Awards or have received Awards may vote on any matters affecting the administration of the Plan or the grant
of Awards, except that no such member will act upon the grant of an Award to himself or herself, but any such member may be counted
in determining the existence of a quorum at any meeting of the Board during which action is taken with respect to the grant of
Awards to himself or herself.

 

The
Board will have full authority to grant Awards under this Plan. In particular, subject to the terms of the Plan, the Board will
have the authority:

 

(a)               
to select the Persons to whom Awards may from time to time be granted hereunder (consistent with the eligibility conditions
set forth in Section 4);

 

(b)              
to determine the type of Award to be granted to any Person hereunder;

 

(c)               
to determine the number and type of Shares, if any, to be covered by each Award (consistent with the provisions of Section
3 regarding the maximum number of Shares subject to the Plan);

 

(d)              
to establish the terms and conditions of each Award Agreement;

 

(e)               
to determine whether and under what circumstances an Option may be exercised without a payment of cash under Section
5(d); and

 

(f)               
to require execution of a Stockholders' Agreement which may include, among other things, restrictions on resale of Shares
and/or a requirement to sell Shares in connection with a Change of Control or other similar transactions, and may impose a limitation
on marketability in connection with a public offering of the Corporation's stock.

 

The
Board will have the authority to adopt, alter and repeal such administrative rules, guidelines and practices governing the Plan
as it, from time to time, deems advisable; to establish the terms of each Award Agreement; to interpret the terms and provisions
of the Plan and any Award issued under the Plan (and any Award Agreement); and to otherwise supervise the administration of the
Plan. The Board may correct any defect, supply any omission or reconcile any inconsistency in the Plan or in any Award in the manner
and to the extent it deems necessary to carry out the intent of the Plan.

 

All
decisions made by the Board pursuant to the provisions of the Plan will be final and binding on all Persons, including the Corporation
and Participants. No Director will be liable for any good faith determination, act or omission in connection with the Plan or any
Award.

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Section 3.Shares Subject to
the Plan.

 

(a)               
Shares Subject to the Plan. The Shares to be subject to Options or Restricted
Stock under the Plan will be authorized and unissued Shares of the Corporation, whether or not previously issued and subsequently
acquired by the Corporation. The maximum number of Shares that may be subject to Options or Restricted Stock under the Plan is
250,000. The Corporation will reserve for the purposes of the Plan, out of its authorized and unissued Shares, such number of Shares.

 

(b)              
Effect of the Expiration or Termination of Awards. If and to the extent that an
Option expires, terminates or is canceled or forfeited for any reason without having been exercised in full, the Shares associated
with that Option will again become available for grant under the Plan. Similarly, if any Restricted Share is canceled, forfeited
or repurchased for any reason, or if any Share is withheld pursuant to Section 9(d) in settlement of a tax withholding obligation
associated with an Award, that Share will again become available for grant under the Plan. If any Share is received in satisfaction
of the exercise price payable upon exercise of an Option, that Share will become available for grant under the Plan.

 

(c)               
Other Adjustment.In the event of any recapitalization, stock split or
combination, stock dividend or other similar event or transaction affecting the Shares, equitable substitutions or adjustments
may be made by the Board, in its sole and absolute discretion, to (i) the aggregate number, type and issuer of the securities reserved
for issuance under the Plan, (ii) the number, type and issuer of Shares subject to outstanding Options, (iii) the exercise price
of outstanding Options, and (iv) the number, type and issuer of Restricted Stock.

 

(d)              
Change of Control. Notwithstanding anything to the contrary set forth in the
Plan, upon or in anticipation of any Change of Control of the Corporation or any of its Affiliates, the Board, as constituted prior
to such Change of Control, may, in its sole and absolute discretion and without the need for the consent of any Participant, take
one or more of the following actions contingent upon the occurrence of that Change of Control: (i) cause any or all outstanding
Options to become vested and immediately exercisable, in whole or in part; (ii) cause any or all outstanding Restricted Stock to
become non-forfeitable, in whole or in part; (iii) cancel any Option in exchange for an option to purchase common stock of any
successor corporation or its parent in a manner consistent with the requirements of Treas. Reg. § 1.424-1 (a)(4)(i) (notwithstanding
the fact that the original Option may never have been intended to satisfy the requirements for treatment as an Incentive Stock
Option); (iv) cancel any Restricted Stock in exchange for restricted shares of the common stock of any successor corporation; (v)
redeem any Restricted Stock for cash and/or other substitute consideration with a value equal to the Fair Market Value of an unrestricted
Share on the date of the Change of Control; or (vi) cancel any Option held by a Participant affected by the Change of Control in
exchange for cash and/or other substitute consideration with a value equal to (A) the number of Shares subject to that Option,
multiplied by (B) the difference, if any, between the Fair Market Value per Share on the date of the Change of Control and the
exercise price of that Option; provided, however, that if the Fair Market Value per Share on the date of the Change of Control
does not exceed the exercise price of any such Option, the Board may cancel that Option without any payment of consideration therefor.

 

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For
purposes of clause (d)(iii) in this Section 3, the exchange of an Option issued under the Plan for an option to purchase
common stock of any successor corporation or its parent shall be permitted only to the extent that the ratio of the exercise price
to the fair market value of the shares subject to the Option immediately after the substitution or assumption is not greater than
the ratio of the exercise price to the Fair Market Value of the Shares subject to the Option immediately before the substitution
or assumption.

 

Section
4.Eligibility. Employees, Directors, consultants, and other individuals who provide services to the Corporation or
its Affiliates are eligible to be granted Awards under the Plan. Persons who are not employees of the Corporation or a
Subsidiary are not eligible to be granted Incentive Stock Options but are eligible to be granted other types of Awards.

 

Section 5.Options. Options granted
under the Plan may be of two types: (i) Incentive Stock Options, or (ii) Non-Qualified Stock Options. Any Option granted
under the Plan will be in such form as the Board may at the time of such grant approve. Without limiting the generality of Section
3(a), any number of the maximum number of Shares provided for in Section 3(a) may be subject to Incentive Stock
Options or Non-Qualified Stock Options, or any combination thereof.

 

The
Award Agreement evidencing any Option will incorporate the following terms and conditions and will contain such additional terms
and conditions, not inconsistent with the terms of the Plan, as the Board deems appropriate in its sole and absolute discretion:

 

(a)               
Option Price. The exercise price per Share purchasable under an Incentive Stock
Option or a Non-Qualified Stock Option will be not less than 100% of the Fair Market Value of the Share on the date of the grant.
However, any Incentive Stock Option granted to any Participant who, at the time the Option is granted, owns more than 10% of the
voting power of all classes of shares of the Corporation or of a Subsidiary will have an exercise price per Share of not less than
110% of Fair Market Value per Share on the date of the grant.

 

(b)              
Option Term. The term of each Option will be fixed by the Board, but no
Incentive Stock Option will be exercisable more than 10 years after the date the Option is granted. However, any Incentive Stock
Option granted to any Participant who, at the time such Option is granted, owns more than 10% of the voting power of all classes
of shares of the Corporation or of a Subsidiary may not have a term of more than 5 years. No Option may be exercised by any Person
after expiration of the term of the Option.

 

(c)               
Exercisability. Options will vest and be exercisable at such time or times and
subject to such terms and conditions as determined by the Board at the time of grant. If the Board provides, in its sole and absolute
discretion, that any Option is exercisable only in installments, the Board may waive such installment exercise provisions at any
time at or after grant, in whole or in part, based on such factors as the Board determines, in its sole and absolute discretion.

 

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(d)              
Method of Exercise. Subject to the exercisability provisions of Section 5(c) and
the termination provisions set forth in Section 6, Options may be exercised in whole or in part at any time and from time
to time during the term of the Option, by the delivery of written notice of exercise by the Participant to the Corporation specifying
the number of Shares to be purchased. Such notice will be accompanied by payment in full of the purchase price, either by cash
or certified or bank check, or such other means as the Board may accept in its sole discretion. As determined by the Board, in
its sole and absolute discretion, at or after grant, payment in full or in part of the exercise price of an Option may be made
in the form of previously acquired Shares based on the Fair Market Value of the Shares on the date the Option is exercised; provided,
however, that, in the case of an Incentive Stock Option, the right to make a payment in the form of previously acquired Shares
may be authorized only at the time the Option is granted.

 

No
Shares will be issued upon exercise of an Option until full payment therefor has been made. A Participant will not have the right
to distributions or dividends or any other rights of a stockholder with respect to Shares subject to the Option until the Participant
has given written notice of exercise, has paid in full for such Shares, and, if requested, has given the representation described
in Section 9(a) hereof.

 

(e)               
Incentive Stock Option Limitations. In the case of an Incentive Stock Option, the
aggregate Fair Market Value (determined as of the time of grant) of the Shares with respect to which Incentive Stock Options are
exercisable for the first time by the Participant during any calendar year under the Plan and/or any other plan of the Corporation
or any Subsidiary will not exceed $100,000. For purposes of applying the foregoing limitation, Incentive Stock Options will be
taken into account in the order granted. To the extent any Option does not meet such limitation, that Option will be treated for
all purposes as a Non-Qualified Stock Option.

 

(f)               
Termination of Service. Unless otherwise specified in the Award Agreement,
Options will be subject to the terms of Section 6 with respect to exercise upon or following termination of employment or
other service.

 

(g)              
Transferability of Options. Except as may otherwise be specifically determined
by the Board with respect to a particular Option, no Option will be transferable by the Participant other than by will or by the
laws of descent and distribution, and all Options will be exercisable, during the Participant's lifetime, only by the Participant
or, in the event of his or her Disability, by his or her personal representative.

 

Section
6.Termination of Service. Unless otherwise specified with respect to a particular Option in the applicable Award
Agreement, all Options will remain exercisable after termination of employment only to the extent specified in this Section
6.

 

(a)              
Termination by Reason of Death.
If a Participant's service with the Corporation or any Affiliate terminates by reason of death, any Option held by such
Participant may thereafter be exercised, to the extent then exercisable or on such accelerated basis as the Board may
determine, at or after grant, by the legal representative of the estate or by the legatee of the Participant under the will
of the Participant, for a period expiring on the earliest to occur of (i) such time as may be specified by the Board at or
after the time of grant, or (ii) if not specified by the Board, then 12 months from the date of death, or (iii) the
expiration of the stated term of such Option.

 

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(b)              
Termination by Reason of Disability. If a Participant's service with the
Corporation or any Affiliate terminates by reason of Disability, any Option held by such Participant may thereafter be exercised
by the Participant or his or her personal representative, to the extent it was exercisable at the time of termination, or on such
accelerated basis as the Board may determine at or after grant, for a period expiring on the earliest to occur of (i) such time
as may be specified by the Board at or after the time of grant, or (ii) if not specified by the Board, then 12 months from the
date of termination of service, or (iii) the expiration of the stated term of such Option.

 

(c)               
Cause. If a Participant's service with the Corporation or any Affiliate is
terminated for Cause: (i) any Option not already exercised will be immediately and automatically forfeited as of the date of such
termination, and (ii) any Shares for which the Corporation has not yet delivered share certificates will be immediately and automatically
forfeited and the Corporation will refund to the Participant the Option exercise price paid for such Shares, if any.

 

(d)              
Other Termination. If a Participant's service with the Corporation or any Affiliate
terminates for any reason other than death, Disability or Cause, then, except as otherwise provided in the applicable Award Agreement,
any Option held by such Participant may thereafter be exercised by the Participant, to the extent it was exercisable at the time
of such termination, or on such accelerated basis as the Board may determine at or after grant, for a period expiring on the earliest
to occur of (i) such time as may be specified by the Board at or after the time of grant, or (ii) if not specified by the Board,
then 90 days from the date of termination of service, or (iii) the expiration of the stated term of such Option.

 

Section 7.Restricted Stock.

 

(a)               
Issuance. Restricted Stock may be issued either alone or in conjunction with
other Awards. The Board will determine the time or times within which Restricted Stock may be subject to forfeiture, and all other
conditions of such Awards.

 

(b)              
Awards and Certificates. The Award Agreement evidencing the grant of any
Restricted Stock will contain such terms and conditions, not inconsistent with the terms of the Plan, as the Board deems appropriate
in its sole and absolute discretion. The prospective recipient of an Award of Restricted Stock will not have any rights with respect
to such Award, unless and until such recipient has delivered to the Corporation an executed Award Agreement and has otherwise complied
with the applicable terms and conditions of such Award. The purchase price for Restricted Stock may, but need not, be zero.

 

A share
certificate will be issued in connection with each Award of Restricted Stock. Such certificate will be registered in the name of
the Participant receiving the Award, and will bear the following legend and/or any other legend required by (i) this Plan, the
Award Agreement, a Stockholders' Agreement, or any other agreement governing the issuance of such Award of Restricted Stock, or
(ii) by applicable law:

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THE SECURITIES REPRESENTED
BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE PLEDGED, HYPOTHECATED, SOLD OR TRANSFERRED
IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR AN OPINION
OF COUNSEL SATISFACTORY TO THE CORPORATION THAT SUCH PLEDGE, HYPOTHECATION, SALE OR TRANSFER IS EXEMPT THEREFROM UNDER THE SECURITIES
ACT AND APPLICABLE STATE SECURITIES LAWS.

 

THE SECURITIES REPRESENTED
BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER, REPURCHASE RIGHTS, AND/OR FORFEITURE CONDITIONS AS SET FORTH
IN THE EDGE THERAPEUTICS, INC. 2010 EQUITY INCENTIVE PLAN, A RESTRICTED STOCK AWARD AGREEMENT, AND/OR A STOCKHOLDERS' (OR SIMILAR)
AGREEMENT(S), COPIES OF WHICH ARE ON FILE AT THE PRINCIPAL OFFICE OF THE CORPORATION AND WILL BE FURNISHED UPON REQUEST TO THE
HOLDER OF RECORD OF THE SHARES REPRESENTED BY THIS CERTIFICATE.

 

Share
certificates evidencing Restricted Stock will be held in custody by the Corporation or in escrow by an escrow agent until the restrictions
thereon have lapsed. As a condition to any Restricted Stock Award, the Participant may be required to deliver to the Corporation
a stock power, endorsed in blank, relating to the Shares covered by such Award.

 

(c)               
Restrictions and
Conditions. The Restricted Stock awarded pursuant to this Section 7 will be subject to the following restrictions
and conditions, and any other restrictions and conditions set forth in the Award Agreement:

 

(i)                
During a period commencing with the date of an Award of
Restricted Stock and ending at such time or times as specified by the Board (the “Restriction Period ”),
the Participant will not be permitted to sell, transfer, pledge, assign or otherwise encumber Restricted Stock awarded under the
Plan. The Board may condition the lapse of restrictions on Restricted Stock upon the continued employment or service of the recipient,
the attainment of specified individual or corporate performance goals, or such other factors as the Board may determine, in its
sole and absolute discretion.

 

(ii)               Except
as provided in this Paragraph (ii) or Section 7(c)(i), once the Participant has been issued a certificate or
certificates for Restricted Stock, the Participant will have, with respect to the Restricted Stock, all of the rights of a
stockholder of the Corporation, including the right to vote the Shares, and the right to receive any cash distributions or
dividends. Any distributions or dividends paid in the form of securities with respect to Restricted Stock will be subject to
the same terms and conditions as the Restricted Stock with respect to which they were paid, including, without limitation,
the same Restriction Period.

 

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(iii)            
Subject to the applicable provisions of the Award Agreement, if a
Participant's service with the Corporation and its Affiliates terminates prior to the expiration of the Restriction Period, all
of that Participant's Restricted Stock which then remain subject to forfeiture will then be forfeited automatically.

 

(iv)            
If and when the Restriction Period expires without a prior
forfeiture of the Restricted Stock subject to such Restriction Period (or if and when the restrictions applicable to Restricted
Stock lapse pursuant to Section 3(d) hereof), the certificates for such Shares will be replaced with new certificates, without
the restrictive legends described in Section 7(b) hereof applicable to such lapsed restrictions, and such new certificates
will be promptly delivered to the Participant, the Participant's representative (if the Participant has suffered a Disability),
or the Participant's estate or heir (if the Participant has died).

 

Section 8.Amendments and Termination.
The Board may amend, alter or

 

discontinue the Plan at
any time, but except as otherwise provided in Section 3(d) of the Plan, no amendment, alteration or discontinuation will
be made which (i) would impair the rights of a Participant with respect to an Award, without that Participant's consent, or (ii)
would (a) increase the total number of Shares reserved for the purposes of the Plan (except as otherwise provided in Section
3(c) hereof), or (b) change the Persons or class of Persons eligible to receive Awards, without the approval by the stockholders
of the Corporation within 365 days of the date on which such amendment is adopted by the Board in a manner consistent with Section
1.422-5 of the Treasury Regulations.

 

Section 9.General Provisions.

 

(a)               
The Board may require each Participant to represent to and agree with the
Corporation in writing that the Participant is acquiring securities of the Corporation for investment purposes and without a view
to distribution thereof and as to such other matters as the Board believes are appropriate. The certificate evidencing any Award
and any securities issued pursuant thereto may include any legend which the Board deems appropriate to reflect any restrictions
on transfer and compliance with applicable securities laws.

 

(b)              
All certificates for Shares or other securities delivered under the Plan will be
subject to such share-transfer orders and other restrictions as the Board may deem advisable under the rules, regulations, and
other requirements of the Securities Act of 1933, as amended, the Exchange Act, any stock exchange upon which the Shares are then
listed, and any other applicable federal or state securities laws, and the Board may cause a legend or legends to be put on any
such certificates to make appropriate reference to such restrictions.

 

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(c)               
Nothing contained in the Plan will 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.

 

(d)              
Neither the adoption of the Plan nor the execution of any document in connection
with the Plan will (i) confer upon any employee of the Corporation or an Affiliate any right to continued employment or engagement
with the Corporation or such Affiliate, or (ii) interfere in any way with the right of the Corporation or such Affiliate to terminate
the employment of any of its employees at any time.

 

(e)               
No later than the date as of which an amount first becomes includible in the gross
income of the Participant for federal income tax purposes with respect to any Award under the Plan, the Participant will pay to
the Corporation, or make arrangements satisfactory to the Board regarding the payment of, any federal, state or local taxes of
any kind required by law to be withheld with respect to such amount. Unless otherwise determined by the Board, the minimum required
withholding obligations may be settled with Shares, including, without limitation, Shares that are part of the Award that gives
rise to the withholding requirement. However, any required withholding obligations may not be settled with Shares of Restricted
Stock awarded under this Plan. The obligations of the Corporation under the Plan will be conditioned on such payment or arrangements
and the Corporation will, to the extent permitted by law, have the right to deduct any such Social Security contribution and taxes
from any payment of any kind otherwise due to the Participant.

 

Section
10. Effective Date of Plan. Subject to the approval of the Plan by the Corporation's stockholders within 12 months of the
Plan's adoption by the Board, the Plan will become effective on the date that it is adopted by the Board.

 

Section 11.Term of
Plan. The Plan will continue in effect until terminated in accordance with Section 8 hereof; provided, however,
that no Incentive Stock Option will be granted hereunder on or after the 10th anniversary of the date of stockholder approval
of the Plan (or, if the stockholders approve an amendment that increases the number of Shares subject to the Plan, the 10th
anniversary of the date of such approval); provided further, that Incentive Stock Options granted prior to such 10th
anniversary may extend beyond such date.

 

Section 12.Invalid Provisions. In
the event that any provision of this Plan is found to be invalid or otherwise unenforceable under any applicable law, such
invalidity or unenforceability will not be construed as rendering any other provisions contained herein as invalid or
unenforceable, and all such other provisions will be given full force and effect to the same extent as though the invalid or
unenforceable provision was not contained herein.

 

Section
13. Governing Law. The Plan and all Awards granted hereunder will be governed by and construed in accordance with the laws
and judicial decisions of the State of Delaware, without regard to the application of the principles of conflicts of laws of Delaware
or any other jurisdiction.

 

    	11

    	 

    

Section
14. Board Action. Notwithstanding anything to the contrary set forth in the Plan, any and all actions of the Board or Committee,
as the case may be, taken under or in connection with the Plan and any agreements, instruments, documents, certificates or other
writings entered into, executed, granted, issued and/or delivered pursuant to the terms hereof, will be subject to and limited
by any and all votes, consents, approvals, waivers or other actions of all or certain stockholders of the Corporation or other
Persons required by:

 

(a)               
the Corporation's Certificate of Incorporation (as the same may be amended
and/or restated from time to time);

 

(b)              
the Corporation's Bylaws (as the same may be amended and/or restated from time
to time); and

 

(c)               
any other agreement, instrument, document or writing now or hereafter existing,
between or among the Corporation and its stockholders or other Persons (as the same may be amended from time to time).

 

Section
15. Notices. Any notice to be given to the Corporation pursuant to the provisions of the Plan shall be given by registered
or certified mail, postage prepaid, and, addressed, if to the Corporation to its principal executive office to the attention of
its President or Chief Executive Officer (or such other Person as the Corporation may designate in writing from time to time),
and, if to a Participant, to the address given beneath his or her signature on his or her Award Agreement, or at such other address
as such Participant may hereafter designate in writing to the Corporation. Any such notice shall be deemed given or delivered 3
days after the date of mailing.

 

ADOPTION
AND APPROVAL OF PLAN

 

Date Plan adopted by Board: May 11, 2010 Date

 

Plan approved by Stockholders: May 11, 2010

 

 

 

 

    	12Exhibit 10.4

 

 

 

 

 

 

EDGE THERAPEUTICS, INC. 

2014 EQUITY INCENTIVE PLAN

 

 

 

 

 

 

 

Adopted by the Board of Directors
August 27, 2014

 

Approved by the Shareholders November 3, 2014

 

 

 

    	 

    	 

    

 

 

EDGE THERAPEUTICS, INC.

 

2014 EQUITY INCENTIVE PLAN

 

Section 1.               
Purpose of the Plan. The purpose of the Edge Therapeutics, Inc. 2014 Equity Incentive Plan (the “Plan”)
is to assist the Company and its Subsidiaries in attracting and retaining valued Employees, Consultants and Non-Employee Directors
by offering them a greater stake in the Company’s success and a closer identity with it, and to encourage ownership of the
Company’s stock by such Employees, Consultants and Non-Employee Directors.

 

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

 

2.1.           
“Award” means the grant of Restricted Stock, Options, SARs, Restricted Stock Units or Other Awards under
the Plan.

 

2.2.           
“Award Agreement” means the written agreement, instrument or document evidencing an Award.

 

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

 

2.4.           
“Cause” means,

 

(a)               
if the applicable Participant is party to an effective employment, consulting, severance or similar agreement with the Company
or a Subsidiary, and such term is defined therein, “Cause” shall have the meaning provided in such agreement;

 

(b)              
if the applicable Participant is not a party to an effective employment, consulting, severance or similar agreement or if
no definition of “Cause” is set forth in the applicable employment, consulting, severance or similar agreement, “Cause”
shall have the meaning provided in the applicable Award Agreement;

 

(c)               
if neither (a) nor (b) applies, then “Cause” shall mean, as determined by the Committee in its sole discretion,
(i) the Participant’s willful misconduct or gross negligence in connection with the performance of the Participant’s
duties for the Company or its Subsidiaries; (ii) the Participant’s conviction of, or a plea of guilty or nolo contendere
to, a felony or a crime involving fraud or moral turpitude; (iii) the Participant’s engaging in any business that directly
or indirectly competes with the Company or its Subsidiaries; or (iv) disclosure of trade secrets, customer lists or confidential
information of the Company or its Subsidiaries to a competitor or an unauthorized person.

 

2.5.           
“Change in Control” means, unless otherwise provided in an Award Agreement:

 

(a)               
the acquisition in one or more transactions (whether by purchase, merger or otherwise) by any “Person” (as such
term is used for purposes of Section 13(d) or Section 14(d) of the Exchange Act, but excluding, for this purpose, (i) the Company
or its Subsidiaries, (ii) any employee benefit plan of the Company or its Subsidiaries, (iii) an entity owned, directly or indirectly,
by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company) of “Beneficial
Ownership” (within the meaning of Rule 13d-3 under the Exchange Act) of more than fifty percent (50%) of the combined voting
power of the Company’s then outstanding voting securities (the “Voting Securities”);

 

(b)              
a change in the composition of the Board such that the individuals who as of any date constitute the Board (the “Incumbent
Board”) cease to constitute a majority of the Board at any time during the 24-month period immediately following such
date; provided, however, that if the election, or nomination for election by the Company’s shareholders, of any new director
was approved by a vote of at least a majority of the Incumbent Board, such new director shall be considered as a member of the
Incumbent Board, and provided further that any reductions in the size of the Board that are instituted voluntarily by the Incumbent
Board shall not constitute a Change in Control, and after any such reduction the “Incumbent Board” shall mean the Board
as so reduced;

 

(c)               
a complete liquidation or dissolution of the Company; or

 

(d)              
the sale of all or substantially all of the Company’s and its Subsidiaries’ assets (determined on a consolidated
basis), other than to a Person described in clauses (i), (ii) or (iii) of Section 2.5(a) above.

    	2

    	 

    

 

2.6.           
 “Code” means the Internal Revenue Code of 1986, as amended.

 

2.7.           
“Common Stock” means the common stock of the Company, par value $0.01 per share.

 

2.8.           
“Company” means Edge Therapeutics, Inc., a Delaware corporation, or any successor corporation.

 

2.9.           
“Committee” means the Compensation Committee of the Board, provided that the Committee shall at all times
have at least two members, each of whom shall be a “non-employee director” as defined in Rule 16b-3 under the Exchange
Act, an “outside director” as defined in Section 162(m) of the Code and the regulations issued thereunder and an “independent
director” under the rules of any applicable stock exchange.

 

2.10.       
“Consultant” means a natural person who provides bona fide services to the Company or its Subsidiaries
other than in connection with the offer or sale of securities in a capital-raising transaction and is not engaged in activities
that directly or indirectly promote or maintain a market for the Company’s securities.

 

2.11.       
 “Disability” means, unless otherwise provided in an Award Agreement, that the Participant is unable
to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be
expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months.

 

2.12.       
“Effective Date” means the date that the Plan is approved by the shareholders of the Company.

 

2.13.       
“Employee” means an officer or other employee of the Company or a Subsidiary, including a director who
is such an employee.

 

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

 

2.15.       
“Fair Market Value” means, on any given date (i) if the shares of Common Stock are then listed on a national
securities exchange, including the Nasdaq Global Select Market (“NASDAQ”), the closing sales price per share of Common
Stock on the exchange for such date, or if no sale was made on such date on the exchange, on the last preceding day on which a
sale occurred; (ii) if shares of Common Stock are not then listed on a national securities exchange but are then quoted on another
stock quotation system, the closing price for the shares of Common Stock as quoted on such quotation system on such date, or if
no sale was made on such date on such quotation system, on the last preceding day on which a sale was made; or (iii) if (i) and
(ii) do not apply, such value as the Committee in its discretion may in good faith determine in accordance with Section 409A of
the Code and the regulations thereunder (and, with respect to Incentive Stock Options, in accordance with Section 422 of the Code
and the regulations thereunder).

 

2.16.       
“Incentive Stock Option” means an Option or portion thereof intended to meet the requirements of an incentive
stock option as defined in Section 422 of the Code and designated as an Incentive Stock Option.

 

2.17.       
“Non-Employee Director” means a member of the Board who is not an Employee.

 

2.18.       
“Non-Qualified Option” means an Option or portion thereof not intended to be an Incentive Stock Option.

 

2.19.       
“Option” means a right granted under Section 6.1 of the Plan to purchase a specified number of shares
of Common Stock at a specified price. An Option may be an Incentive Stock Option or a Non-Qualified Option; provided, however,
that unless otherwise explicitly stated in an Award Agreement, each Option shall be a Non-Qualified Stock Option.

 

2.20.       
“Participant” means any Employee, Non-Employee Director or Consultant who receives an Award.

    	3

    	 

    

 

2.21.       
“Performance Goals” means any goals established by the Committee in its sole discretion, the attainment
of which is substantially uncertain at the time such goals are established. Performance Goals may be described in terms of Company-wide
objectives or objectives that are related to the performance of the individual Participant or the Subsidiary, division, department
or function within the Company or Subsidiary in which the Participant is employed. Performance Goals may be measured on an absolute
or relative basis. Relative performance may be measured by a group of peer companies or by a financial market index. To the extent
that the Award is intended to constitute “qualified performance-based compensation” within the meaning of Code Section
162(m), then such Award shall be based on the achievement of one or more of the following performance goals: specified levels of
or increases in return on capital, equity or assets; earnings measures/ratios (on a gross, net, pre-tax or post-tax basis), including
diluted earnings per share, total earnings, operating earnings, earnings growth, earnings before interest and taxes (EBIT) and
earnings before interest, taxes, depreciation and amortization (EBITDA); net economic profit (which is operating earnings minus
a charge to capital); net income; operating income; sales; sales growth; gross margin; direct margin; share price (including but
not limited to growth measures and total shareholder return); operating profit; per period or cumulative cash flow (including but
not limited to operating cash flow and free cash flow) or cash flow return on investment (which equals net cash flow divided by
total capital); inventory turns; financial return ratios; market share; balance sheet measurements such as receivable turnover;
improvement in or attainment of expense levels; improvement in or attainment of working capital levels; debt reduction; strategic
innovation, including but not limited to entering into, substantially completing, or receiving payments under, relating to, or
deriving from a joint development agreement, licensing agreement, or similar agreement; customer or employee satisfaction; individual
objectives; operating efficiency; regulatory body approvals for commercialization of products; implementation or completion of
critical projects or related milestones (including, without limitation, milestones such as clinical trial enrollment targets, commencement
of phases of clinical trials and completion of phases of clinical trials); partnering or similar transactions; and any combination
of any of the foregoing criteria. If the Committee determines that a change in the business, operations, corporate structure or
capital structure of the Company or its Subsidiaries, or the manner in which it conducts its business, or other events or circumstances
render the Performance Goals unsuitable, the Committee may modify such Performance Goals or the related minimum acceptable level
of achievement, in whole or in part, as the Committee deems appropriate and equitable (but, with respect to any Award that is intended
to constitute “qualifying performance-based compensation” (within the meaning of Code Section 162(m)),only to the extent
permitted by Code Section 162(m)).

 

2.22.       
“Performance Period” means the period selected by the Committee during which the performance of the Company,
any Subsidiary, any department of the Company or any Subsidiary, or any individual is measured for the purpose of determining the
extent to which a Performance Goal has been achieved.

 

2.23.       
“Restricted Stock” means Common Stock awarded by the Committee under Section 6.3 of the Plan.

 

2.24.       
“Restricted Stock Unit” means the right granted under Section 6.4 of the Plan to receive, on the date of settlement,
an amount equal to the Fair Market Value of one share of Common Stock. An Award of Restricted Stock Units may be settled in cash,
shares of Common Stock or any combination of the foregoing.

 

2.25.       
“Restriction Period” means the period during which Restricted Stock and Restricted Stock Units are subject
to forfeiture.

 

2.26.       
“SAR” means a stock appreciation right awarded by the Committee under Section 6.2 of the Plan.

 

2.27.       
“Securities Act” means the Securities Act of 1933, as amended.

 

2.28.       
“Subsidiary” means any corporation, partnership, joint venture or other business entity of which 50%
or more of the outstanding voting power is beneficially owned, directly or indirectly, by the Company.

 

2.29.       
“Ten Percent Shareholder” means a person who on any given date owns, either directly or indirectly (taking
into account the attribution rules contained in Section 424(d) of the Code), stock possessing more than 10% of the total combined
voting power of all classes of stock of the Company or a Subsidiary.

 

Section 3.               
Eligibility. Any Employee, Non-Employee Director or Consultant shall be eligible to be selected to receive an Award
under the Plan; provided, however, that only persons who are Employees may be granted Options which are intended to qualify as
Incentive Stock Options.

    	4

    	 

    

 

Section 4.               
Administration and Implementation of the Plan.

 

4.1.           
The Plan and all Award Agreements shall be administered by the Committee. Any action of the Committee in administering the
Plan and an Award Agreement shall be final, conclusive and binding on all persons, including the Company, its Subsidiaries, Participants,
persons claiming rights from or through Participants and shareholders of the Company.
No member of the Committee (or any person to whom the Committee has delegated authority to act under the Plan) shall be
personally liable for any action, determination, or interpretation taken or made in good faith by the Committee (or such person)
with respect to the Plan or any Awards granted hereunder, and all members of the Committee (and such persons) shall be fully indemnified
and protected by the Company in respect of any such action, determination or interpretation to the fullest extent permitted by
law.

 

4.2.           
Subject to the provisions of the Plan, the Committee shall have full and final authority in its discretion to (i) select
the Employees, Non-Employee Directors and Consultants who will receive Awards pursuant to the Plan; (ii) determine the type or
types of Awards to be granted to each Participant; (iii) determine the number of shares of Common Stock to which an Award will
relate, the terms and conditions of any Award granted under the Plan (including, but not limited to, restrictions as to vesting,
transferability or forfeiture, exercisability or settlement of an Award and waivers or accelerations thereof, and waivers of or
modifications to Performance Goals relating to an Award, based in each case on such considerations as the Committee shall determine)
and all other matters to be determined in connection with an Award; (iv) determine the exercise price or purchase price (if any)
of an Award; (v) determine whether, to what extent, and under what circumstances an Award may be cancelled, forfeited, or surrendered;
(vi) determine whether, and to certify that, Performance Goals to which an Award is subject are satisfied; (vii) correct any defect
or supply any omission or reconcile any inconsistency in the Plan, and adopt, amend and rescind such rules, regulations, guidelines,
forms of agreements and instruments relating to the Plan as it may deem necessary or advisable; (viii) construe and interpret the
Plan; and (ix) make all other determinations as it may deem necessary or advisable for the administration of the Plan; provided,
however, that the Committee shall be prohibited from effecting a repricing of any outstanding Award without shareholder approval.

 

4.3.           
To the extent permitted by applicable law, the Committee may delegate some or all of its authority with respect to the Plan
and Awards to any executive officer of the Company or any other person or persons designated by the Committee, in each case, acting
individually or as a committee, provided that the Committee may not delegate its authority hereunder to any person to make Awards
to (a) Employees who are (i) “officers” as defined in Rule 16a-1(f) under the Exchange Act, (ii) “covered employees”
within the meaning of Section 162(m) of the Code or (iii) officers or other Employees who are delegated authority by the Committee
pursuant to this Section or (b) members of the Board. Any delegation hereunder shall be subject to the restrictions and limits
that the Committee specifies at the time of such delegation or thereafter. The Committee may at any time rescind the authority
delegated to any person pursuant to this Section. Any action undertaken by any such person or persons in accordance with the Committee’s
delegation of authority pursuant to this Section shall have the same force and effect as if undertaken directly by the Committee.

 

Section 5.               
Shares of Common Stock Subject to the Plan.

 

5.1.           
Subject to adjustment as provided in Section 8 hereof, the total number of shares of Common Stock available for Awards under
the Plan as of the Effective Date shall be 2,500,000 (the “Plan Limit”); provided, however, that on January 1, 2015
and each January 1st thereafter prior to the termination of the Plan, the Plan Limit shall be increased by the lesser
of (x) 4% of the number of shares of Common Stock outstanding as of the immediately preceding December 31st and (y)
such lesser number as the Board may determine in its discretion. Up to 2,000,000 shares available for Awards under the Plan may
be issued pursuant to Incentive Stock Options, and no more than 1,250,000 shares may be awarded to any Participant in any one calendar
year. For purposes of determining the number of shares available for Awards under the Plan, each stock-settled SAR shall count
against the Plan Limit based on the number of shares underlying the exercised portion of such SAR rather than the number of shares
issued in settlement of such SAR. Any shares tendered, with the Committee’s approval, by a Participant in payment of an exercise
price for an Award or the tax liability with respect to an Award, including shares withheld from any such Award, shall not be available
for future Awards hereunder. Common Stock awarded under the Plan may be reserved or made available from the Company’s authorized
and unissued Common Stock or from Common Stock reacquired and held in the Company’s treasury. Any shares of Common Stock
issued by the Company through the assumption or substitution of outstanding grants from an acquired company shall not reduce the
shares of Common Stock available for Awards under the Plan.

 

5.2.           
If any shares subject to an Award under the Plan are forfeited or such Award otherwise terminates or is settled for any
reason whatsoever without an actual distribution of shares to the Participant, any shares counted against the number of shares
available for issuance pursuant to the Plan with respect to such Award shall, to the extent of any such forfeiture, settlement,
or termination, again be available for Awards under the Plan; provided, however, that the Committee may adopt procedures for the
counting of shares relating to any Award to ensure appropriate counting, avoid double counting, provide for adjustments in any
case in which the number of shares actually distributed differs from the number of shares previously counted in connection with
such Award, and if necessary, to comply with applicable law or regulations.

    	5

    	 

    

 

Section 6.               
Awards. Awards may be granted on the terms and conditions set forth in this Section 6. In addition, the Committee
may impose on any Award or the settlement or exercise thereof, at the date of grant or thereafter, such additional terms and conditions,
not inconsistent with the provisions of the Plan, as the Committee shall determine, including without limitation terms requiring
forfeiture of Awards in the event of the termination of employment or other relationship with the Company or any Subsidiary by
the Participant; provided, however, that the Committee shall retain full power to accelerate or waive any such additional term
or condition as it may have previously imposed (provided that, in any case, any such action is permitted under Code Section 409A).
The right of a Participant to exercise or receive a grant or settlement of any Award, and the timing thereof, may be subject to
such Performance Goals as may be determined by the Committee. Each Award, and the terms and conditions applicable thereto, shall
be evidenced by an Award Agreement.

 

6.1.           
Options. Options give a Participant the right to purchase a specified number of shares of Common Stock from the Company
for a specified time period at a fixed exercise price, as provided in the applicable Award Agreement. Options may be either Incentive
Stock Options or Non-Qualified Stock Options; provided that Incentive Stock Options may not be granted to Non-Employee Directors
or Consultants. The grant of Options shall be subject to the following terms and conditions:

 

(a)               
Exercise Price. The price per share at which Common Stock may be purchased upon exercise of an Option shall be determined
by the Committee and specified in the Award Agreement, but shall be not less than the Fair Market Value of a share of Common Stock
on the date of grant (or 110% of the Fair Market Value of a share of Common Stock on the date of grant in the case of an Incentive
Stock Option granted to a Ten Percent Shareholder).

 

(b)              
Term of Options. The term of an Option shall be specified in the Award Agreement, but shall in no event be greater
than ten years from the grant date (or five years from the grant date in the case of an Incentive Stock Option granted to a Ten
Percent Shareholder).

 

(c)               
Exercise of Option. Each Award Agreement with respect to an Option shall specify the time or times at which an Option
may be exercised in whole or in part and the terms and conditions applicable thereto, including (i) a vesting schedule which may
be based upon the passage of time, attainment of Performance Goals or a combination thereof, (ii) whether the exercise price for
an Option shall be paid in cash, with shares of Common Stock, with any combination of cash and shares of Common Stock, or with
other legal consideration that the Committee may deem appropriate, (iii) the methods of payment, which may include payment through
cashless and net exercise arrangements, to the extent permitted by applicable law and (iv) the methods by which, or the time or
times at which, Common Stock will be delivered or deemed to be delivered to Participants upon the exercise of such Option. Payment
of the exercise price shall in all events be made within three days after the date of exercise of an Option. With respect to any
Participant who is subject to Section 16 of the Exchange Act, such Participant may direct the Company to reduce the number of Shares
that would otherwise be deliverable upon the exercise of his or her Option having a Fair Market Value on the date of exercise equal
to the exercise price of the portion of the Option then being exercised.

 

(d)              
Termination of Employment or Other Service. Unless otherwise provided in an Award Agreement, upon a Participant’s
termination of employment or other service with the Company and its Subsidiaries, the unvested portion of such Participant’s
Options shall cease to vest and shall be forfeited and the vested portion of such Participant’s Options shall remain exercisable
by the Participant or the Participant’s beneficiary or legal representative, as the case may be, for a period of (i) 30 days
in the event of a termination by the Company or a Subsidiary without Cause, (ii) 180 days in the event of a termination due to
death or Disability and (iii) 30 days in the event of the Participant’s voluntary termination; provided, however, that in
no event shall any Option be exercisable after its stated term has expired. All of a Participant’s Options, whether or not
vested, shall be forfeited immediately upon such Participant’s termination by the Company or a Subsidiary for Cause.

 

(e)               
Incentive Stock Options. Each Participant awarded an Incentive Stock Option under the Plan shall notify the Company
in writing immediately after the date he or she makes a “disqualifying disposition” (as defined in Section 421(b) of
the Code) of any shares of Common Stock acquired pursuant to the exercise of such Incentive Stock Option. The Company may, if determined
by the Committee and in accordance with procedures established by it, retain possession of any shares acquired pursuant to the
exercise of an Incentive Stock Option as agent for the applicable Participant until the end of any period during which a disqualifying
disposition could occur, subject to complying with any instructions from such Participant as to the sale of such shares. The aggregate
Fair Market Value, determined as of the date of grant, for Awards granted under the Plan (or any other stock option plan required
to be taken into account under Section 422(d) of the Code) that are intended to be Incentive Stock Options which are first exercisable
by the Participant during any calendar year shall not exceed $100,000. To the extent an Award purporting to be an Incentive Stock
Option exceeds the limitation in the previous sentence, the portion of the Award in excess of such limit shall be a Non-Qualified
Option.  

    	6

    	 

    

 

6.2.           
Stock Appreciation Rights. An SAR shall confer on the Participant a right to receive, upon exercise thereof, the
excess of (i) the Fair Market Value of one share of Common Stock on the date of exercise over (ii) the grant price of the SAR as
determined by the Committee, but which may never be less than the Fair Market Value of one share of Common Stock on the date of
grant. The grant of SARs shall be subject to the following terms and conditions:

 

(a)               
General. Each Award Agreement with respect to an SAR shall specify the number of SARs granted, the grant price of
the SAR, the time or times at which an SAR may be exercised in whole or in part (including vesting upon the passage of time, the
attainment of Performance Goals, or a combination thereof), the method of exercise, method of settlement (in cash, Common Stock
or a combination thereof), method by which Common Stock will be delivered or deemed to be delivered to Participants (if applicable)
and any other terms and conditions of any SAR.

 

(b)              
Termination of Employment or Other Service. Unless otherwise provided in an Award Agreement, upon a
Participant’s termination of employment or other service with the Company and its Subsidiaries, the unvested portion of such
Participant’s SARs shall cease to vest and shall be forfeited and the vested portion of such Participant’s SARs shall
remain exercisable by the Participant or the Participant’s beneficiary or legal representative, as the case may be, for a
period of (i) 30 days in the event of a termination by the Company or a Subsidiary without Cause, (ii) 180 days in the event of
a termination due to death or Disability and (iii) 30 days in the event of the Participant’s voluntary termination; provided,
however, that in no event shall any SAR be exercisable after its stated term has expired. All of a Participant’s SARs, whether
or not vested, shall be forfeited immediately upon such Participant’s termination by the Company or a Subsidiary for Cause.

 

(c)               
Term. The term of an SAR shall be specified in the Award Agreement, but shall in no event be greater than ten years.

 

6.3.           
Restricted Stock. An Award of Restricted Stock is a grant by the Company of a specified number of shares of Common
Stock to the Participant, which shares are subject to forfeiture upon the happening of specified events during the Restriction
Period. Such an Award shall be subject to the following terms and conditions:

 

(a)               
General. Each Award Agreement with respect to Restricted Stock shall specify the duration of the Restriction Period
and/or each installment thereof, the conditions under which the Restricted Stock may be forfeited to the Company, and the amount,
if any, the Participant must pay to receive the Restricted Stock. Such restrictions may include a vesting schedule based upon the
passage of time, the attainment of Performance Goals or a combination thereof.

 

(b)              
Transferability. During the Restriction Period, the transferability of Restricted Stock shall be prohibited or restricted
in the manner and to the extent prescribed in the applicable Award Agreement. Such restrictions may include, without limitation,
rights of repurchase or first refusal in the Company or provisions subjecting the Restricted Stock to a continuing substantial
risk of forfeiture in the hands of any transferee.

 

(c)               
Shareholder Rights. Unless otherwise provided in the applicable Award Agreement, during the Restriction Period the
Participant shall have all the rights of a shareholder with respect to Restricted Stock, including, without limitation, the right
to receive dividends thereon (whether in cash or shares of Common Stock) and to vote such shares of Restricted Stock; provided,
however, that dividends shall be subject to the same restrictions as the underlying Restricted Stock (unless otherwise provided
by the Committee in the Award Agreement) and cash dividends shall be held by the Company in its general assets and released to
the Participant only upon the vesting of the underlying Restricted Stock (unless otherwise provided by the Committee in the Award
Agreement).

 

(d)              
Termination of Employment or Other Service. Unless otherwise provided in the applicable Award Agreement,
upon a Participant’s termination of employment or other service with the Company and its Subsidiaries for any reason, the
unvested portion of each Award of Restricted Stock held by such Participant shall be forfeited with no compensation due the Participant.

 

(e)               
Additional Matters. Upon the Award of Restricted Stock, the Committee may direct the number of shares of Common Stock
subject to such Award be issued to the Participant or placed in a restricted stock account (including an electronic account) with
the transfer agent and in either case designating the Participant as the registered owner. The certificate(s), if any, representing
such shares shall be physically or electronically legended, as applicable, as to sale, transfer, assignment, pledge or other encumbrances
during the Restriction Period and, if issued to the Participant, returned to the Company to be held in escrow during the Restriction
Period. In all cases, the Participant shall sign a stock power endorsed in blank to the Company to be held in escrow during the
Restriction Period.

    	7

    	 

    

 

6.4.           
Restricted Stock Units. Restricted Stock Units are solely a device for the measurement and determination of the amounts
to be paid to a Participant under the Plan. Restricted Stock Units do not constitute Common Stock and shall not be treated as (or
as giving rise to) property or as a trust fund of any kind; provided, however, that the Company may establish a bookkeeping reserve
to meet its obligations hereunder or a trust or other funding vehicle that would not cause the Plan to be deemed to be funded for
tax purposes or for purposes of Title I of the Employee Retirement Income Security Act of 1974, as amended. The right of any Participant
in respect of an Award of Restricted Stock Units shall be no greater than the right of any unsecured general creditor of the Company.
 The grant of Restricted Stock Units shall be subject to the following terms and conditions:

 

(a)               
Restriction Period. Each Award Agreement with respect to Restricted Stock Units shall specify the duration of the
Restriction Period, if any, and/or each installment thereof and the conditions under which such Award may be forfeited to the Company.
Such restrictions may include a vesting schedule based upon the passage of time, the attainment of Performance Goals or a combination
thereof.

 

(b)              
Termination of Employment or Other Service. Unless otherwise provided in the applicable Award Agreement, upon
a Participant’s termination of employment or other service with the Company and its Subsidiaries for any reason, the unvested
portion of each Award of Restricted Stock Units credited to such Participant shall be forfeited with no compensation due the Participant.

 

(c)               
Settlement. Unless otherwise provided in an Award Agreement (i) an Award of Restricted Stock Units shall be settled
in shares of Common Stock, provided that any fractional Restricted Stock Units shall be settled in cash and (ii) subject to the
Participant’s continued employment or other service with the Company or a Subsidiary from the date of grant through the expiration
of the Restriction Period (or applicable portion thereof), the vested portion of an Award of Restricted Stock Units shall be settled
within 30 days after the expiration of the Restriction Period (or applicable portion thereof).

 

(d)              
Shareholder Rights. Nothing contained in the Plan shall be construed to give any Participant rights as a shareholder
with respect to an Award of Restricted Stock Units (including, without limitation, any voting, dividend or derivative or other
similar rights). Notwithstanding the foregoing, the Committee may provide in an Award Agreement that amounts equal to any dividends
declared during the Restriction Period on the shares of Common Stock represented by an Award of Restricted Stock Units will be
credited to the Participant’s account and deemed to be reinvested in additional Restricted Stock Units, such additional Restricted
Stock Units to be subject to the same forfeiture restrictions and settlement date as the Restricted Stock Units to which they relate.

 

6.5.           
Other Stock-Based Awards. The Committee is authorized, subject to limitations under applicable law, to grant to Participants
any type of Award (in addition to those Awards provided in Sections 6.1, 6.2, 6.3 or 6.4 hereof) that is payable in, or valued
in whole or in part by reference to, shares of Common Stock, and that is deemed by the Committee to be consistent with the purposes
of the Plan, including, without limitation, dividend equivalents, performance shares and performance units (“Other Awards”).

 

Section 7.               
Change in Control.

 

7.1.           
General. Notwithstanding any provision in the Plan to the contrary, upon the occurrence of a Change in Control, the
Committee, in its discretion, may accelerate the vesting and, if applicable, exercisability of all outstanding Awards such that
all outstanding Awards are fully vested and, if applicable, exercisable (effective immediately prior to such Change in Control)
and may determine whether all applicable Performance Goals have been achieved and the applicable level of performance.

    	8

    	 

    

 

7.2.           
Options and SARs. Notwithstanding any provision in the Plan to the contrary, upon the occurrence of a Change in Control,
the Committee, in its discretion, may take one or more of the following actions with respect to Options and SARs that are outstanding
as of such Change in Control: (a) cancel any outstanding Options or SARs in exchange for a cash payment in an amount equal to the
excess, if any, of the Fair Market Value of the Common Stock underlying the unexercised portion of the Option or SAR as of the
date of the Change in Control over the exercise price or grant price, as the case may be, of such portion, provided that any Option
or SAR with an exercise price or grant price, as the case may be, that equals or exceeds the Fair Market Value of the Common Stock
on the date of such Change in Control shall be cancelled with no payment due the Participant; (b) terminate any Option or SAR,
effectively immediately prior to the Change in Control, provided that the Company provides the Participant an opportunity to exercise
such Award within a specified period following the Participant’s receipt of a written notice of such Change in Control and
the Company’s intention to terminate such Awards, effective immediately prior to such Change in Control; (c) terminate any
Options or SARs, the Performance Goals of which have not been satisfied as of the Change in Control, (d) require the successor
or acquiring company (or its parents or subsidiaries), following a Change in Control, to assume any outstanding Option or SAR and
to substitute such Option or SAR with awards involving the common equity securities of such company on terms and conditions necessary
to preserve the rights of Participants with respect to such Options or SARs or (e) take such other actions as the Committee believes
may be appropriate.

 

7.3.           
Restricted Stock, Restricted Stock Units and Other Awards. With respect to Restricted Stock, Restricted Stock Units
or Other Awards, the Committee generally may (a) provide in an Award that, upon the occurrence of a Change in Control, any vested
Restricted Stock, Restricted Stock Units and Other Awards shall become immediately vested and/or payable, provided that if such
Awards constitute “non-qualified deferred compensation” (within the meaning of Code Section 409A) such Change in Control
satisfies the requirements of Treasury Regulation Section 1.409A-3(i)(5)(v), (vi) or (vii); (b) with respect to any Restricted
Stock, Restricted Stock Units or Other Awards that do not constitute “non-qualified deferred compensation,” elect to
settle such Restricted Stock, Restricted Stock Units and Other Awards upon a Change in Control, (c) terminate any Restricted Stock,
Restricted Stock Units or Other Awards if the applicable Performance Goals were not satisfied as of the Change in Control, (d)
require the successor or acquiring company (or its parents or subsidiaries), following a Change in Control, to assume such Restricted
Stock, Restricted Stock Units and Other Awards or to substitute such Awards with awards involving the equity securities of the
acquiring or successor company on terms and conditions so as to preserve the rights of participants, or (e) to the extent permitted
by Code Section 409A, take such other actions as the Committee believes may be appropriate (including terminating such Awards for
a cash payment equal to the fair market value of the underlying shares).

 

The judgment of the Committee with respect
to any matter referred to in this Section 7 shall be conclusive and binding upon each Participant without the need for any amendment
to the Plan.

 

Section 8.               
Adjustments upon Changes in Capitalization.

 

8.1.           
In order to prevent dilution or enlargement of the rights of Participants under the Plan as a result of any stock dividend,
recapitalization, forward stock split or reverse stock split, reorganization, division, merger, consolidation, spin-off, combination,
repurchase or share exchange, extraordinary or unusual cash distribution or other similar corporate transaction or event that affects
the Common Stock, the Committee shall adjust (i) the number and kind of shares of Common Stock which may thereafter be issued in
connection with Awards, (ii) the number and kind of shares of Common Stock issuable in respect of outstanding Awards, (iii) the
aggregate number and kind of shares of Common Stock available under the Plan (including any of the specific limitations under Section
5 hereof), and (iv) the exercise or grant price relating to any Award. Any such adjustment shall be made in an equitable manner
which reflects the effect of such transaction or event. It is provided, however, that in the case of any such transaction or event,
the Committee may make any additional adjustments to the items in (i) through (iv) above which it deems appropriate in the circumstances,
or make provision for a cash payment with respect to any outstanding Award; and it is provided, further, that no adjustment shall
be made under this Section that would cause the Plan to violate Section 422 of the Code with respect to Incentive Stock Options
or that would adversely affect the status of any Award that is “performance-based compensation” under Section 162(m)
of the Code.

    	9

    	 

    

 

8.2.           
In addition, the Committee is authorized to make adjustments in the terms and conditions of, and the criteria included in,
Awards, including any Performance Goals, in recognition of unusual or nonrecurring events (including, without limitation, events
described in Section 8.1) affecting the Company or any Subsidiary, or in response to changes in applicable laws, regulations, or
accounting principles. Notwithstanding the foregoing, all adjustments shall be made in accordance with Section 409A of the Code
and the regulations thereunder to the extent applicable, and with respect to any Award that is “performance-based compensation”
under Section 162(m) of the Code, in accordance with Section 162(m) of the Code.

 

Section 9.               
Termination and Amendment.

 

9.1.           
Changes to the Plan and Awards. The Board may amend, alter, suspend, discontinue, or terminate the Plan without the
consent of the Company’s shareholders or Participants, except that any such amendment, alteration, suspension, discontinuation,
or termination shall be subject to the approval of the Company’s shareholders if (i) such action would increase the number
of shares subject to the Plan, (ii) such action would decrease the price at which Awards may be granted, or (iii) such shareholder
approval is required by any applicable federal, state or foreign law or regulation or the rules of any stock exchange or automated
quotation system on which the Common Stock may then be listed or quoted, and the Board may otherwise, in its discretion, determine
to submit such other changes to the Plan to the Company’s shareholders for approval; provided, however, that except as provided
in Section 18, without the consent of an affected Participant, no amendment, alteration, suspension, discontinuation, or termination
of the Plan may materially and adversely affect the rights of such Participant under any outstanding Award unless such modification
is necessary to ensure a deduction under Section 162(m) of the Code or to avoid the additional tax described in Section 409A of
the Code.

 

9.2.           
The Committee may waive any conditions or rights under, or amend, alter, suspend, discontinue, or terminate, any Award theretofore
granted and any Award Agreement relating thereto; provided, however, that except as provided in Section 18, without the consent
of an affected Participant, no such amendment, alteration, suspension, discontinuation, or termination of any Award may materially
and adversely affect the rights of such Participant under such Award unless such modification is necessary to ensure a deduction
under Section 162(m) of the Code or to avoid the additional tax described in Section 409A of the Code.

 

9.3.           
Notwithstanding anything in this Section 9 to the contrary, any Performance Goal applicable to an Award shall not be deemed
a fixed contractual term, but shall remain subject to adjustment by the Committee, in its discretion at any time in view of the
Committee’s assessment of the Company’s strategy, performance of comparable companies, and other circumstances, except
to the extent that any such adjustment to a performance condition would adversely affect the status of an Award intended to satisfy
the “qualified performance-based compensation” exception under Section 162(m) of the Code and the regulations thereunder.

 

9.4.           
Notwithstanding anything in the Plan or an Award Agreement to the contrary, no Award may be repriced, replaced or regranted
through cancellation without the approval of the shareholders of the Company, provided that nothing herein shall prevent the Committee
from taking any action provided for in Section 8.

 

Section 10.           
No Right to Award, Employment or Service. No Participant shall have any claim to be granted any Award under the Plan,
and there is no obligation that the terms of Awards be uniform or consistent among Participants. Neither the Plan nor any action
taken hereunder shall be construed as giving any Participant any right to be retained in the employ or service of the Company or
any Subsidiary. For purposes of this Plan, a transfer of employment or service between the Company and its Subsidiaries shall not
be deemed a termination of employment or service; provided, however, that individuals employed by, or otherwise providing services
to, an entity that ceases to be a Subsidiary shall be deemed to have incurred a termination of employment or service, as the case
may be, as of the date such entity ceases to be a Subsidiary unless such individual becomes an employee of, or service provider
to, the Company or another Subsidiary as of the date of such cessation.

 

Section 11.           
Taxes. Each Participant must make appropriate arrangement for the payment of any taxes relating to an Award granted
hereunder. The Company or any Subsidiary is authorized to withhold from any payment relating to an Award under the Plan, including
from a distribution of Common Stock or any payroll or other payment to a Participant, amounts of withholding and other taxes due
in connection with any transaction involving an Award, and to take such other action as the Committee may deem advisable to enable
the Company and Participants to satisfy obligations for the payment of withholding taxes and other tax obligations relating to
any Award. This authority shall include the ability to withhold or receive Common Stock or other property and to make cash payments
in respect thereof in satisfaction of a Participant’s tax obligations. Withholding of taxes in the form of shares of Common
Stock with respect to an Award shall not occur at a rate that exceeds the minimum required statutory federal and state withholding
rates.

    	10

    	 

    

 

Section 12.           
Limits on Transferability; Beneficiaries. No Award or other right or interest of a Participant under the Plan shall
be pledged, encumbered, or hypothecated to, or in favor of, or subject to any lien, obligation, or liability of such Participant
to, any party, other than the Company or any Subsidiary, or assigned or transferred by such Participant otherwise than by will
or the laws of descent and distribution, and such Awards and rights shall be exercisable during the lifetime of the Participant
only by the Participant or his or her guardian or legal representative. Notwithstanding the foregoing, the Committee may, in its
discretion, provide that Options, SARs and Restricted Stock be transferable, without consideration, to immediate family members
(i.e., children, grandchildren or spouse), to trusts for the benefit of such immediate family members and to partnerships in which
such family members are the only partners (any vesting conditions shall be unaffected by such transfer). The Committee may attach
to such transferability feature such terms and conditions as it deems advisable. In addition, a Participant may, in the manner
established by the Committee, designate a beneficiary (which may be a person or a trust) to exercise the rights of the Participant,
and to receive any distribution, with respect to any Award upon the death of the Participant. A beneficiary, guardian, legal representative
or other person claiming any rights under the Plan from or through any Participant shall be subject to all terms and conditions
of the Plan and any Award Agreement applicable to such Participant, except as otherwise determined by the Committee, and to any
additional restrictions deemed necessary or appropriate by the Committee.

 

Section 13.           
Foreign Nationals. Without amending the Plan, Awards may be granted to Employees, Consultants and Non-Employee Directors
who are foreign nationals or are employed or providing services outside the United States or both, on such terms and conditions
different from those specified in the Plan as may, in the judgment of the Committee, be necessary or desirable to further the purpose
of the Plan. Moreover, the Committee may approve such supplements to, or amendments, restatements or alternative versions of, the
Plan as it may consider necessary or appropriate for such purposes without thereby affecting the terms of the Plan as in effect
for any other purpose, provided that no such supplements, amendments, restatements or alternative versions shall include any provisions
that are inconsistent with the terms of the Plan, as then in effect, unless the Plan could have been amended to eliminate such
inconsistency without further approval by the stockholders of the Company.

 

Section 14.           
Securities Law Requirements.

 

14.1.       
No shares of Common Stock may be issued hereunder if the Company shall at any time determine that to do so would (i) violate
the listing requirements of an applicable securities exchange, or adversely affect the registration or qualification of the Company’s
Common Stock under any state or federal law, or (ii) require the consent or approval of any regulatory body or the satisfaction
of withholding tax or other withholding liabilities. In any of the events referred to in clause (i) or clause (ii) above, the issuance
of such shares shall be suspended and shall not be effective unless and until such withholding, listing, registration, qualifications
or approval shall have been effected or obtained free of any conditions not acceptable to the Company in its sole discretion, notwithstanding
any termination of any Award or any portion of any Award during the period when issuance has been suspended.

 

14.2.       
The Committee may require, as a condition to the issuance of shares hereunder, representations, warranties and agreements
to the effect that such shares are being purchased or acquired by the Participant for investment only and without any present intention
to sell or otherwise distribute such shares and that the Participant will not dispose of such shares in transactions which, in
the opinion of counsel to the Company, would violate the registration provisions of the Securities Act, and the rules and regulations
thereunder.

 

Section 15.           
Termination. Unless earlier terminated, the Plan shall terminate on the earlier of the 10-year anniversary of the
Effective Date or the 10-year anniversary of the date the Plan was approved by the Board, and no Awards under the Plan shall thereafter
be granted.

 

Section 16.           
Fractional Shares. The Company will not be required to issue any fractional shares of Common Stock pursuant to the
Plan. The Committee may provide for the elimination of fractions and settlement of such fractional shares of Common Stock in cash.

    	11

    	 

    

 

Section 17.           
Discretion. In exercising, or declining to exercise, any grant of authority or discretion hereunder, the Committee
may consider or ignore such factors or circumstances and may accord such weight to such factors and circumstances as the Committee
alone and in its sole judgment deems appropriate and without regard to the effect such exercise, or declining to exercise such
grant of authority or discretion, would have upon the affected Participant, any other Participant, any Employee, the Company,
any Subsidiary, any affiliate, any shareholder or any other person.

 

Section 18.           
Code Section 409A. The Plan and all Awards are intended to comply with, or be exempt from, Code Section 409A and
all regulations, guidance, compliance programs and other interpretative authority thereunder, and shall be interpreted in a manner
consistent therewith. Notwithstanding anything contained herein to the contrary, in the event any Award is subject to Code Section 409A,
the Committee may, in its sole discretion and without a Participant’s prior consent, amend the Plan and/or Award, adopt policies
and procedures, or take any other actions as deemed appropriate by the Committee to (i) exempt the Plan and/or any Award from
the application of Code Section 409A, (ii) preserve the intended tax treatment of any such Award or (iii) comply
with the requirements of Code Section 409A. Notwithstanding anything contained in the Plan or in an Award Agreement to the
contrary, neither the Company, any member of the Committee nor any Subsidiary shall have any liability or obligation to any Participant
or any other person for taxes, interest, penalties or fines (including any of the foregoing resulting from the failure of any Award
granted hereunder to comply with, or be exempt from, Code Section 409A).

 

Section 19.           
Governing Law. The validity and construction of the Plan and any Award Agreements entered into thereunder shall be
construed and enforced in accordance with the laws of the State of Delaware, but without giving effect to the conflict of laws
principles thereof.

 

Section 20.           
Recoupment. Any Award granted pursuant to the Plan shall be subject to mandatory repayment by the Participant to
the Company pursuant to the terms of any Company “clawback” or recoupment policy directly applicable to the Plan and
(i) set forth in the Participant’s Award Agreement or (ii) required by law to be applicable to the Participant.

 

Section 21.           
Effective Date. The Plan shall become effective upon the Effective Date, and no Award shall become exercisable, realizable
or vested prior to the Effective Date.

 

 

    	12

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