Document:

Exhibit 10.7

 

 

 

Notice of Grant of Director Stock
Option

and

Terms and Conditions of Director
Stock
Option

 

 

 

	Director:	[Name]	Option Number:	[_________]
	 	[Address]	Plan:	2020 Plan
	 	[Address]	ID:	[_________]

 

 

Effective [___________] (the “Award Date”), you (the “Director”)
have been granted a nonqualified stock option (the “Option”) to buy [________] shares1 of Common
Stock of Lantronix, Inc. (the “Corporation”) at a price of $[_______] per share1 (the “Exercise
Price”).

 

The aggregate Exercise Price of the shares subject to the Option is
$[__________].1

 

[The Option will become vested in 12 substantially equal monthly
installments, with one such installment vesting in each of the 12 consecutive calendar months that follows the month in which the Award
Date occurs. Each such installment shall vest on the same day of the applicable month as the Award Date (or, if there is no such date
in the applicable month, on the last day of such month); provided, however, that on the day immediately preceding the date of the first
annual meeting of the Corporation’s stockholders at which one or more members of the Corporation’s Board of Directors are
to be elected that occurs in the year following the year in which the Award Date occurs, the Option, to the extent then outstanding and
unvested, shall fully vest.1, 2]

 

The Option will expire on [_________] (the “Expiration
Date”). 1, 2

 

 

By your signature and the Corporation’s signature below, you
and the Corporation agree that the Option is granted under and governed by the terms and conditions of the Corporation's 2020 Performance
Incentive Plan (the “Plan”) and the Terms and Conditions of Director Stock Option (the “Terms”), which are attached
and incorporated herein by this reference. This Notice of Grant of Director Stock Option, together with the Terms, will be referred to
as your Option Agreement. The Option has been granted to you in addition to, and not in lieu of, any other form of compensation otherwise
payable or to be paid to you. Capitalized terms are defined in the Plan if not defined herein or in the Terms. You acknowledge receipt
of a copy of the Terms, the Plan and the Prospectus for the Plan.

 

 

 

 

 

	___________________________________________________	 	_______________________________
	Lantronix, Inc.	 	Date
	 	 	 
	 	 	 
	___________________________________________________	 	_______________________________
	[Director Name]	 	Date

 

 

 

 

____________________

 

1 Subject to adjustment under Section 7.1 of the Plan.

2 Subject to early termination under Section 5 of the Terms
and Section 7.2 of the Plan.

 

 

 

    	 	1	 

     

    

 

LANTRONIX, INC.

2020 PERFORMANCE INCENTIVE PLAN

TERMS AND CONDITIONS OF DIRECTOR STOCK OPTION

 

		1.	General.

 

These Terms and Conditions of Director Stock Option
(these “Terms”) apply to a particular stock option (the “Option”) if incorporated by reference in
the Notice of Grant of Director Stock Option (the “Grant Notice”) corresponding to that particular grant. The recipient
of the Option identified in the Grant Notice is referred to as the “Director.” The per share exercise price of the
Option as set forth in the Grant Notice is referred to as the “Exercise Price.” The effective date of grant of the
Option as set forth in the Grant Notice is referred to as the “Award Date.” The exercise price and the number of shares
covered by the Option are subject to adjustment under Section 7.1 of the Plan.

 

The Option was granted under and subject to the
Lantronix, Inc. 2020 Performance Incentive Plan (the “Plan”). Capitalized terms are defined in the Plan if not defined
herein. The Option has been granted to the Director in addition to, and not in lieu of, any other form of compensation otherwise payable
or to be paid to the Director. The Grant Notice and these Terms are collectively referred to as the “Option Agreement”
applicable to the Option.

 

		2.	Vesting; Change in Control; Limits on Exercise; Incentive Stock Option Status.

 

The Option shall vest and become exercisable in
percentage installments of the aggregate number of shares subject to the Option as set forth on the Grant Notice. The Option may be exercised
only to the extent the Option is vested and exercisable.

 

		·	Change in Control. Notwithstanding any other provision to the contrary contained herein or in the Plan, upon the occurrence
of a Change in Control (as defined in Exhibit A hereto), the Option, to the extent then outstanding and unvested, shall accelerate
and become fully vested and exercisable as of (or, as may be necessary to effectuate the purposes of this acceleration, immediately prior
to) the date of the Change in Control.

 

		·	Cumulative Exercisability. To the extent that the Option is vested and exercisable, the Director has the right to exercise
the Option (to the extent not previously exercised), and such right shall continue, until the expiration or earlier termination of the
Option.

 

		·	No Fractional Shares. Fractional share interests shall be disregarded, but may be cumulated.

 

		·	Minimum Exercise. No fewer than 100 shares of Common Stock (subject to adjustment under Section 7.1 of the Plan) may be purchased
at any one time, unless the number purchased is the total number at the time exercisable under the Option.

 

		·	Nonqualified Stock Option. The Option is a nonqualified stock option and is not, and shall not be, an incentive stock option
within the meaning of Section 422 of the Code.

 

		3.	Continuance of Service Required; No Service Commitment.

 

The vesting schedule applicable to the Option requires
continued service through each applicable vesting date as a condition to the vesting of the applicable installment of the Option and the
rights and benefits under this Option Agreement. Service for only a portion of the vesting period, even if a substantial portion, will
not entitle the Director to any proportionate vesting or avoid or mitigate a termination of rights and benefits upon or following a termination
of services as provided in Section 5 below or under the Plan. Nothing contained in this Option Agreement or the Plan constitutes a continued
service commitment by the Corporation or interferes with the right of the Corporation to increase or decrease the compensation of the
Director from the rate in existence at any time.

 

 

 

    	 	2	 

     

    

 

		4.	Method of Exercise of Option.

 

The Option shall be exercisable by the delivery
to the Secretary of the Corporation (or such other person as the Administrator may require pursuant to such administrative exercise procedures
as the Administrator may implement from time to time) of:

 

		·	a written notice stating the number of shares of Common Stock to be purchased pursuant to the Option or by the completion of such
other administrative exercise procedures as the Administrator may require from time to time;

 

		·	payment in full for the Exercise Price of the shares to be purchased in cash, check or by electronic funds transfer to the Corporation;

 

		·	any written statements or agreements required pursuant to Section 8.1 of the Plan; and

 

		·	satisfaction of the tax withholding provisions of Section 8.5 of the Plan.

 

The Administrator also may, but is not required
to, authorize a non-cash payment alternative by one or more of the following methods (subject in each case to compliance with all applicable
laws, rules, regulations and listing requirements and further subject to such rules as the Administrator may adopt as to any such payment
method):

 

		·	notice and third party payment in such manner as may be authorized by the Administrator;

 

		·	in shares of Common Stock already owned by the Director, valued at their fair market value (as determined under the Plan) on the exercise
date;

 

		·	a reduction in the number of shares of Common Stock otherwise deliverable to the Director (valued at their fair market value on the
exercise date, as determined under the Plan) pursuant to the exercise of the Option; or

 

		·	a “cashless exercise” with a third party who provides simultaneous financing for the purposes of (or who otherwise facilitates)
the exercise of the Option.

 

		5.	Early Termination of Option.

 

5.1             
Expiration Date. Subject to earlier termination as provided below in this Section 5, the Option will terminate on the “Expiration
Date” set forth in the Grant Notice (the “Expiration Date”).

 

5.2             
Possible Termination of Option upon Certain Corporate Events. The Option is subject to termination in connection with certain
corporate events as provided in Section 7.2 of the Plan.

 

5.3             
Termination of Option upon a Termination of Director’s Services. Subject to earlier termination on the Expiration Date
of the Option or pursuant to Section 5.2 above, if the Director ceases to be a member of the Board for any reason (the last day that the
Director provides services as a director is referred to as the Director’s “Severance Date”), (a) the Director
will have until the date that is 2 years after his or her Severance Date to exercise the Option (or portion thereof) to the extent that
it was vested on the Severance Date, (b) the Option, to the extent not vested on the Severance Date, shall terminate on the Severance
Date, and (c) the Option, to the extent exercisable for the 2-year period following the Severance Date and not exercised during such period,
shall terminate at the close of business on the last day of the 2-year period.

 

 

 

    	 	3	 

     

    

 

		6.	Non-Transferability.

 

The Option and any other rights of the Director
under this Option Agreement or the Plan are nontransferable and exercisable only by the Director, except as set forth in Section 5.7 of
the Plan.

 

		7.	Notices.

 

Any notice to be given under the terms of this
Option Agreement shall be in writing and addressed to the Corporation at its principal office to the attention of the Secretary, and to
the Director at the address last reflected on the Corporation’s payroll records, or at such other address as either party may hereafter
designate in writing to the other. Any such notice shall be delivered in person or shall be enclosed in a properly sealed envelope addressed
as aforesaid, registered or certified, and deposited (postage and registry or certification fee prepaid) in a post office or branch post
office regularly maintained by the United States Government. Any such notice shall be given only when received, but if the Director is
no longer a member of the Board, shall be deemed to have been duly given five business days after the date mailed in accordance with the
foregoing provisions of this Section 7.

 

		8.	Plan.

 

The Option and all rights of the Director under
this Option Agreement are subject to the terms and conditions of the Plan, incorporated herein by this reference. The Director agrees
to be bound by the terms of the Plan and this Option Agreement. The Director acknowledges having read and understanding the Plan, the
Prospectus for the Plan, and this Option Agreement. Unless otherwise expressly provided in other sections of this Option Agreement, provisions
of the Plan that confer discretionary authority on the Board or the Administrator do not and shall not be deemed to create any rights
in the Director unless such rights are expressly set forth herein or are otherwise in the sole discretion of the Board or the Administrator
so conferred by appropriate action of the Board or the Administrator under the Plan after the date hereof.

 

		9.	Entire Agreement.

 

This Option Agreement and the Plan together constitute
the entire agreement and supersede all prior understandings and agreements, written or oral, of the parties hereto with respect to the
subject matter hereof. The Plan and this Option Agreement may be amended pursuant to Section 8.6 of the Plan. Such amendment must
be in writing and signed by the Corporation. The Corporation may, however, unilaterally waive any provision hereof in writing to the extent
such waiver does not adversely affect the interests of the Director hereunder, but no such waiver shall operate as or be construed to
be a subsequent waiver of the same provision or a waiver of any other provision hereof.

 

		10.	Governing Law.

 

This Option Agreement (including the Notice) shall
be governed by and construed and enforced in accordance with the laws of the State of Delaware without regard to conflict of law principles
thereunder. The Director does not have to accept the Option. If the Director does not agree to the terms of the Award, the Director should
promptly return this Option Agreement to the Corporation’s Stock Plan Administrator indicating that the Director does not wish to
accept the Option, and the Option will be cancelled.

 

		11.	Effect of this Agreement.

 

Subject to the Corporation’s right to terminate
the Option pursuant to Section 7.2 of the Plan, this Option Agreement shall be assumed by, be binding upon and inure to the benefit of
any successor or successors to the Corporation.

 

 

 

    	 	4	 

     

    

 

		12.	Counterparts; Electronic Signature.

 

This Option Agreement may be signed and/or transmitted
in one or more counterparts by facsimile, e-mail of a .PDF, .TIF, .GIF, .JPG or similar attachment or using electronic signature technology
(e.g., via DocuSign or similar electronic signature technology), all of which will be considered one and the same agreement and will become
effective when one or more counterparts have been signed by each of the parties hereto and delivered to the other parties, it being understood
that all parties need not sign the same counterpart, and that any such signed electronic record shall be valid and as effective to bind
the party so signing as a paper copy bearing such party’s hand-written signature. To the extent a party signs this Option Agreement
using electronic signature technology, by clicking “sign,” “accept,” or similar acknowledgement of acceptance,
such party is signing this Option Agreement electronically, and electronic signatures appearing on Option Agreement (or entered as to
this Option Agreement using electronic signature technology) shall be treated, for purposes of validity, enforceability and admissibility,
the same as hand-written signatures.

 

		13.	Section Headings.

 

The section headings of this Option Agreement are
for convenience of reference only and shall not be deemed to alter or affect any provision hereof.

 

		14.	Clawback Policy.

 

The Option is subject to the terms of the Corporation’s
recoupment, clawback or similar policy as it may be in effect from time to time, as well as any similar provisions of applicable law,
any of which could in certain circumstances require forfeiture of the Option and repayment or forfeiture of any shares of Common Stock
or other cash or property received with respect to the Option (including any value received from a disposition of the shares acquired
upon exercise of the Option).

 

		15.	No Advice Regarding Grant. 

 

The Director is hereby advised to consult with
his or her own tax, legal and/or investment advisors with respect to any advice the Director may determine is needed or appropriate with
respect to the Option (including, without limitation, to determine the foreign, state, local, estate and/or gift tax consequences with
respect to the Option and any shares that may be acquired upon exercise of the Option). Neither the Corporation nor any of its officers,
directors, affiliates or advisors makes any representation (except for the terms and conditions expressly set forth in this Option Agreement)
or recommendation with respect to the Option. Except for the withholding rights contemplated by Section 4 above and Section 8.5 of the
Plan, the Director is solely responsible for any and all tax liability that may arise with respect to the Option and any shares that may
be acquired upon exercise of the Option.

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	5	 

     

    

 

EXHIBIT A

 

“Change in Control” means the
occurrence of any of the following events:

 

(i)       A change
in the ownership of the Corporation which occurs on the date that any one person, or more than one person acting as a group,
(“Person”) acquires ownership of the stock of the Corporation that, together with the stock held by such Person, constitutes
more than 50% of the total voting power of the stock of the Corporation; provided, however, that for purposes of this subsection (i),
the acquisition of additional stock by any one Person, who is considered to own more than 50% of the total voting power of the stock of
the Corporation will not be considered a Change in Control; or

 

(ii)       A change
in the effective control of the Corporation which occurs on the date that a majority of members of the Board is replaced during any twelve
(12) month period by directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date
of the appointment or election. For purposes of this clause (ii), if any Person is considered to effectively control the Corporation,
the acquisition of additional control of the Corporation by the same Person will not be considered a Change in Control; or

 

(iii)       A
change in the ownership of a substantial portion of the Corporation’s assets which occurs on the date that any Person acquires (or
has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person or persons) assets from
the Corporation that have a total gross fair market value equal to or more than 50% of the total gross fair market value of all of the
assets of the Corporation immediately prior to such acquisition or acquisitions; provided, however, that for purposes of this subsection
(iii), the following will not constitute a change in the ownership of a substantial portion of the Corporation’s assets: (A) a transfer
to an entity that is controlled by the Corporation’s stockholders immediately after the transfer, or (B) a transfer of assets by
the Corporation to: (1) a stockholder of the Corporation (immediately before the asset transfer) in exchange for or with respect to the
Corporation’s stock, (2) an entity, 50% or more of the total value or voting power of which is owned, directly or indirectly, by
the Corporation, (3) a Person, that owns, directly or indirectly, 50% or more of the total value or voting power of all the outstanding
stock of the Corporation, or (4) an entity, at least 50% of the total value or voting power of which is owned, directly or indirectly,
by a Person described in this subsection (iii)(B)(3). For purposes of this subsection (iii), gross fair market value means the value of
the assets of the Corporation, or the value of the assets being disposed of, determined without regard to any liabilities associated with
such assets.

 

For purposes of this definition of Change in Control,
persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase
or acquisition of stock, or similar business transaction with the Corporation. Notwithstanding the foregoing, a transaction shall not
be deemed a Change in Control unless the transaction qualifies as a change in the ownership of the Corporation, change in the effective
control of the Corporation or a change in the ownership of a substantial portion of the Corporation’s assets, each within the meaning
of Section 409A of the Code and any proposed or final Treasury Regulations and Internal Revenue Service guidance that has been promulgated
or may be promulgated thereunder from time to time.

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	6Exhibit 10.8

 

 

 

Notice of Grant of Restricted
Stock Unit Award

and

Terms and Conditions of Restricted Stock Unit Award

 

 

 

	Participant:	[Name]	Award Number:	[_________]
	 	[Address]	Plan:	2020 Plan
	 	[Address]	ID:	[_________]

 

 

Effective [___________] (the “Award Date”), you (the “Participant”)
have been granted an award (the “Award”) of [________]1 restricted stock units with respect to
the Common Stock of Lantronix, Inc. (the “Corporation”).

 

[The Award will become vested as to 25% of the total number
of restricted stock units subject to the Award on each of the first, second, third and fourth anniversaries of the Award Date.1,
2]

 

 

By your signature and the Corporation’s signature below, you
and the Corporation agree that the Award is granted under and governed by the terms and conditions of the Corporation's 2020 Performance
Incentive Plan (the “Plan”) and the Terms and Conditions of Restricted Stock Unit Award (the “Terms”), which
are attached and incorporated herein by this reference. This Notice of Grant of Restricted Stock Unit Award, together with the Terms,
will be referred to as your Award Agreement. The Award has been granted to you in addition to, and not in lieu of, any other form of
compensation otherwise payable or to be paid to you. Capitalized terms are defined in the Plan if not defined herein or in the Terms.
You acknowledge receipt of a copy of the Terms, the Plan and the Prospectus for the Plan.

 

 

	___________________________________________________	 	_______________________________
	Lantronix, Inc.	 	Date
	 	 	 
	 	 	 
	___________________________________________________	 	_______________________________
	[Participant Name]	 	Date

 

 

 

____________________

 

1 Subject to adjustment under Section 7.1 of the Plan.

2 Subject to early termination under Section 5 of the Terms
and Section 7.2 of the Plan.

 

 

 

    	 	1	 

     

    

 

LANTRONIX, INC.

2020 PERFORMANCE INCENTIVE PLAN

 

TERMS AND CONDITIONS OF RESTRICTED STOCK UNIT
AWARD

 

1.     
General. These Terms and Conditions of Restricted Stock Unit Award (these “Terms”) apply to a particular
grant of restricted stock units (the “Award”) under the Lantronix, Inc. 2020 Performance Incentive Plan (the “Plan”)
if incorporated by reference in the Notice of Grant of Restricted Stock Unit Award (the “Notice”) corresponding to
that particular award. Capitalized terms used in these Terms are used as defined in the Notice or, if not defined in the Notice, as defined
in the Plan.

 

The
Award has been granted to the Participant in addition to, and not in lieu of, any other form of compensation otherwise payable or to be
paid to the Participant. The Notice and these Terms are collectively referred to as the “Award Agreement”
applicable to the Award.

 

As
used in this Award Agreement, the term “stock unit” means a non-voting unit of measurement which is deemed for bookkeeping
purposes to be equivalent to one outstanding share of the Corporation’s Common Stock (subject to adjustment as provided in Section
7.1 of the Plan) solely for purposes of the Plan and this Award Agreement. The Stock Units shall be used solely as a device for the determination
of the payment to eventually be made to the Participant if such Stock Units vest pursuant to this Award Agreement. The Stock Units shall
not be treated as property or as a trust fund of any kind.

 

2.     
Vesting; Continuance of Employment or Service Required; No Employment or Service Commitment. Subject to Section 6 below,
the Stock Units subject to the Award shall vest and become nonforfeitable in accordance with the Vesting Schedule set forth in the Notice.
The Vesting Schedule requires continued employment or service through each applicable vesting date as a condition to the vesting of the
applicable installment of the Award and the rights and benefits under this Award Agreement. Employment or service for only a portion of
the vesting period, even if a substantial portion, will not entitle the Participant to any proportionate vesting or avoid or mitigate
a termination of rights and benefits upon or following a termination of employment or services as provided in Section 6 below.

 

Nothing contained in this Award Agreement (including
the Notice) or the Plan constitutes an employment or service commitment by the Corporation or any of its Subsidiaries, affects the Participant’s
status as an employee at will who is subject to termination without cause, confers upon the Participant any right to remain employed by
or in service to the Corporation or any of its Subsidiaries, interferes in any way with the right of the Corporation or any of its Subsidiaries
at any time to terminate such employment or services, or affects the right of the Corporation or any of its Subsidiaries to increase or
decrease the Participant’s other compensation or benefits. Nothing in this Award Agreement (including the Notice), however, is intended
to adversely affect any independent contractual right of the Participant without his or her consent thereto.

 

3.     
Dividend and Voting Rights.

 

(a)  
Limitations on Rights Associated with Units. The Participant shall have no rights as a stockholder of the Corporation,
no dividend rights (except as expressly provided in Section 3(b) with respect to dividend equivalent rights) and no voting rights, with
respect to the Stock Units and any shares of Common Stock underlying or issuable in respect of such Stock Units until such shares of Common
Stock are actually issued to and held of record by the Participant. No adjustments will be made for dividends or other rights of a holder
for which the record date is prior to the date of issuance of such shares.

 

(b)  
Dividend Equivalent Rights Distributions. As of any date that the Corporation pays a cash dividend on its Common
Stock, the Corporation shall credit the Participant with an additional number of Stock Units equal to (i) the per share cash dividend
paid by the Corporation on its Common Stock on such date, multiplied by (ii) the total number of Stock Units (including any dividend equivalents
previously credited hereunder) (with such total number adjusted pursuant to Section 7.1 of the Plan) subject to the Award as of the related
dividend payment record date, divided by (iii) the fair market value of a share of Common Stock on the date of payment of such dividend.
Any Stock Units credited pursuant to the foregoing provisions of this Section 3(b) shall be subject to the same vesting, payment and other
terms, conditions and restrictions as the original Stock Units to which they relate. No crediting of Stock Units shall be made pursuant
to this Section 3(b) with respect to any Stock Units which, as of such record date, have either been paid pursuant to Section 5 or terminated
pursuant to Section 6.

 

 

    	 	2	 

     

    

 

4.     
Restrictions on Transfer. Neither the Award, nor any interest therein or amount or shares payable in respect thereof
may be sold, assigned, transferred, pledged or otherwise disposed of, alienated or encumbered, either voluntarily or involuntarily, except
as set forth in Section 5.6 of the Plan.

 

5.     
Timing and Manner of Payment of Stock Units. On or as soon as administratively practical following each vesting of
the applicable portion of the total Award pursuant to this Award Agreement or Section 7.2 of the Plan (and
in all events not later than two and one-half months after the applicable vesting date), the Corporation shall deliver to the Participant
a number of shares of Common Stock (either by delivering one or more certificates for such
shares or by entering such shares in book entry form, as determined by the Corporation in its discretion) equal to the number
of Stock Units subject to this Award that vest on the applicable vesting date, unless such Stock Units terminate prior to the given vesting
date pursuant to Section 6. Fractional share interests may, in the Corporation’s discretion, be disregarded or settled in cash.
The Corporation’s obligation to deliver shares of Common Stock or otherwise make
payment with respect to vested Stock Units is subject to the condition precedent that the Participant or other person entitled under
the Plan to receive any shares with respect to the vested Stock Units deliver to the Corporation any representations or other documents
or assurances required pursuant to Section 8.1 of the Plan. The Participant shall have no further rights with respect to any
Stock Units that are paid or that terminate pursuant to Section 6.

 

6.     
Effect of Termination of Employment or Service. The Participant’s Stock Units shall terminate to the extent such
units have not become vested prior to the first date the Participant is no longer employed by or in service as a director or consultant
to the Corporation or one of its Subsidiaries, regardless of the reason for the termination of the Participant’s employment or service
with the Corporation or a Subsidiary, whether with or without cause, voluntarily or involuntarily (the last day that the Participant is
employed by or provides services as a director or consultant to the Corporation or a Subsidiary is referred to as the Participant’s
“Severance Date”). If any unvested Stock Units are terminated hereunder, such Stock Units shall automatically terminate
and be cancelled as of the applicable Severance Date without payment of any consideration by the Corporation and without any other action
by the Participant, or the Participant’s beneficiary or personal representative, as the case may be.

 

7.     
Adjustments Upon Specified Events. Upon the occurrence of certain events relating to the Corporation’s stock contemplated
by Section 7.1 of the Plan, the Administrator shall make adjustments in accordance with such section in the number of Stock Units then
outstanding and the number and kind of securities that may be issued in respect of the Award. No such adjustment shall be made with respect
to any cash dividend for which dividend equivalents are credited pursuant to Section 3(b).

 

8.     
Tax Withholding. Subject to Section 8.1 of the Plan, upon any distribution of shares of Common Stock in respect of the
Stock Units, the Corporation shall automatically reduce the number of shares to be delivered by (or otherwise reacquire) the appropriate
number of whole shares, valued at their then fair market value,
to satisfy any withholding obligations of the Corporation or its Subsidiaries with respect to such distribution of shares. In the event
that the Corporation cannot legally satisfy such withholding obligations by such reduction of shares, or in the event of a cash payment
or any other withholding event in respect of the Stock Units, the Corporation (or a Subsidiary) shall be entitled to require a cash payment
by or on behalf of the Participant and/or to deduct from other compensation payable to the Participant any sums required by federal, state
or local tax law to be withheld with respect to such distribution or payment.

 

9.     
Notices. Any notice to be given under the terms of this Award Agreement shall be in writing and addressed to the Corporation
at its principal office to the attention of the Secretary, and to the Participant at the Participant’s last address reflected on
the Corporation’s records, or at such other address as either party may hereafter designate in writing to the other. Any such notice
shall be given only when received, but if the Participant is no longer an employee of or in service to the Corporation, shall be deemed
to have been duly given by the Corporation when enclosed in a properly sealed envelope addressed as aforesaid, registered or certified,
and deposited (postage and registry or certification fee prepaid) in a post office or branch post office regularly maintained by the United
States Government.

 

10. 
Plan. The Award and all rights of the Participant under this Award Agreement are subject to the terms and conditions
of the provisions of the Plan, incorporated herein by reference. The Participant agrees to be bound by the terms of the Plan and this
Award Agreement (including the Notice). The Participant acknowledges having read and understanding the Plan, the Prospectus for the Plan,
and this Award Agreement (including the Notice). Unless otherwise expressly provided in other sections of this Award Agreement, provisions
of the Plan that confer discretionary authority on the Board or the Administrator do not (and shall not be deemed to) create any rights
in the Participant unless such rights are expressly set forth herein or are otherwise in the sole discretion of the Board or the Administrator
so conferred by appropriate action of the Board or the Administrator under the Plan after the date hereof.

 

 

 

    	 	3	 

     

    

 

11. 
Entire Agreement. This Award Agreement (including the Notice) and the Plan together constitute the entire agreement
and supersede all prior understandings and agreements, written or oral, of the parties hereto with respect to the subject matter hereof.
The Plan and this Award Agreement (including the Notice) may be amended pursuant to Section 8.6 of the Plan. Such amendment must
be in writing and signed by the Corporation. The Corporation may, however, unilaterally waive any provision hereof in writing to the extent
such waiver does not adversely affect the interests of the Participant hereunder, but no such waiver shall operate as or be construed
to be a subsequent waiver of the same provision or a waiver of any other provision hereof.

 

12. 
Limitation on Participant’s Rights. Participation in the Plan confers no rights or interests other than as herein
provided. This Award Agreement (including the Notice) creates only a contractual obligation on the part of the Corporation as to amounts
payable and shall not be construed as creating a trust. Neither the Plan nor any underlying program, in and of itself, has any assets.
The Participant shall have only the rights of a general unsecured creditor of the Corporation with respect to amounts credited and benefits
payable, if any, with respect to the Stock Units, and rights no greater than the right to receive the Common Stock as a general unsecured
creditor with respect to Stock Units, as and when payable hereunder.

 

13. 
Counterparts; Electronic Signature. This Award Agreement may be signed and/or transmitted in one or more counterparts
by facsimile, e-mail of a .PDF, .TIF, .GIF, .JPG or similar attachment or using electronic signature technology (e.g., via DocuSign or
similar electronic signature technology), all of which will be considered one and the same agreement and will become effective when one
or more counterparts have been signed by each of the parties hereto and delivered to the other parties, it being understood that all parties
need not sign the same counterpart, and that any such signed electronic record shall be valid and as effective to bind the party so signing
as a paper copy bearing such party’s hand-written signature. To the extent a party signs this Award Agreement using electronic signature
technology, by clicking “sign,” “accept,” or similar acknowledgement of acceptance, such party is signing this
Award Agreement electronically, and electronic signatures appearing on this Award Agreement (or entered as to this Award Agreement using
electronic signature technology) shall be treated, for purposes of validity, enforceability and admissibility, the same as hand-written
signatures.

 

14. 
Section Headings. The section headings of this Award Agreement are for convenience of reference only and shall not be
deemed to alter or affect any provision hereof.

 

15. 
Governing Law. This Award Agreement (including the Notice) shall be governed by and construed and enforced in accordance
with the laws of the State of Delaware without regard to conflict of law principles thereunder. The Participant does not have to accept
the Award, and it is not a condition of employment that the Participant accept the Award. If the Participant does not agree to the terms
of the Award, the Participant should promptly return this Award Agreement to the Corporation’s Stock Plan Administrator indicating
that the Participant does not wish to accept the Award, and the Stock Units will be cancelled.

 

16. 
Construction. It is intended that the terms of the Award will not result in the imposition of any tax liability pursuant
to Section 409A of the Code. This Award Agreement (including the Notice) shall be construed and interpreted consistent with that intent.

 

17. 
Clawback Policy. The Stock Units are subject to the terms of the Corporation’s recoupment, clawback or similar
policy as it may be in effect from time to time, as well as any similar provisions of applicable law, any of which could in certain circumstances
require repayment or forfeiture of the Stock Units or any shares of Common Stock or other cash or property received with respect to the
Stock Units (including any value received from a disposition of the shares acquired upon payment of the Stock Units).

 

18. 
No Advice Regarding Grant. The Participant is hereby advised to consult with his or her own tax, legal and/or investment
advisors with respect to any advice the Participant may determine is needed or appropriate with respect to the Stock Units (including,
without limitation, to determine the foreign, state, local, estate and/or gift tax consequences with respect to the Award). Neither the
Corporation nor any of its officers, directors, affiliates or advisors makes any representation (except for the terms and conditions expressly
set forth in this Award Agreement, including the Notice) or recommendation with respect to the Award. Except for the withholding rights
set forth in Section 8 above, the Participant is solely responsible for any and all tax liability that may arise with respect to the Award.

 

* * *

 

 

 

    	 	4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00332-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00332-of-00352.parquet"}]]