Document:

Exhibit
10.7

 

Amended
and Restated Employment Agreement

 

This Amended and Restated
Employment Agreement (this “Agreement”) is effective as of February 2, 2018 (the “Effective Date”), by
and between Terry Pearce, an individual resident of the State of Utah (“Executive”) and Purple Innovation, Inc., a
Delaware corporation (the “Company”).

 

WHEREAS,
the Company wishes to employ Executive in accordance with the terms of this Agreement.

 

WHEREAS,
Executive wishes to accept employment with the Company according to the terms of this Agreement.

 

NOW,
THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows:

 

1.
Employment. The Company hereby employs Executive, and Executive hereby accepts employment by the Company, upon the terms
and conditions set forth in this Agreement for the period beginning on the Effective Date and ending on the date described in
Section 4(a) (the “Employment Period”).

 

2.
Position and Duties.

 

(a)
During the Employment Period and subject to any applicable terms of the Certificate of Incorporation or Bylaws of the Company,
Executive shall serve as Co-Director of Research and Development of the Company and shall, subject to the direction of the Board
of Directors (“Board”) and the Chief Executive Officer of the Company (“CEO”), participate in the Company’s
technology, research and innovation efforts. In connection therewith, Executive shall work with the Company’s other Co-Director
of Research and Development (if such person has been engaged by the Company) to supervise or assist with the research and development
activities of the Company, subject to the power and authority of the Board and the CEO to expand (with mutual agreement of Executive)
or limit Executive’s duties, responsibilities, functions and authority.

 

(b)
Executive shall report to the CEO and shall diligently perform his duties in good faith in accordance with Section 2(a) above.

 

(c)
Executive shall comply with all lawful rules, policies, procedures, regulations and administrative directions now or hereafter
reasonably established by the Board for employees of the Company.

 

(d)
Notwithstanding the foregoing in this Section 2, Executive’s employment will be subject to the following provisions:

 

(i)
Executive will be free to devote such time as he sees fit in his sole discretion towards educational, welfare, social, religious
and civic organizations and perform services for, and hold director, advisor, management or employment positions with, other companies
and businesses. Without limitation of the foregoing, Company accepts and approves that Executive may serve one or more LDS missions
or, if called, serve in any capacity for the LDS church and related organizations during the Employment period. Executive will
not be required to work a particular number of hours for the Company.

 

     

     

    

 

(ii)
The parties agree that Executive’s inventions, ideas and other intellectual property conceived developed, reduced to practice,
documented or filed with any governmental entity during his employment relating to the business conducted, or known to be proposed
to be conducted, by the Company or its subsidiaries are the consideration provided in exchange for the Salary payments and other
benefits hereunder. Notwithstanding anything herein to the contrary, Executive shall, as a condition to his employment hereunder
and to his right to the receipt of the Salary and other benefits hereunder, enter into a Proprietary Information, Invention Assignment,
and Non-Competition Agreement in substantially the form annexed as Exhibit A hereto setting forth the Executive’s previous
inventions which pre-date the date of such Proprietary Information, Invention Assignment and Non-Competition Agreement.

 

3.
Salary and Benefits.

 

(a)
Salary. During the Employment Period, the Company shall pay Executive base monthly salary at the following annual rates
during the calendar years set forth below:

 

2017:
$300,000

 

2018:
$320,000

 

2019:
$340,000

 

2020:
$360,000

 

2021:
$380,000

 

2022
and thereafter: Minimum $20,000 per year increases.

 

(b)
Bonus. With respect to each calendar year during the Employment Period, Executive may be eligible to receive an annual
or more frequent bonus as determined by the Board in its sole discretion. Any bonus payable hereunder shall be paid no later than
March 15th of the calendar year following the calendar year for which the bonus is earned. In addition, Executive will be entitled
to participate in any equity incentive plan offered to other executives of the Company and adopted by the Board of Directors or
the Compensation Committee of the Board of Directors.

 

(c)
Benefits. During the Employment Period, Executive, for himself and his spouse and dependent children under the age of 26,
will be entitled to all employee benefit plans of the Company or benefits offered by the Company to its employees, including without
limitation all health insurance plans, dental insurance plans, vision insurance plans, disability insurance plans, worker’s
comp plans, unemployment insurance plans, social security or Medicare matching plans, retirement plans (including 401(k)), life
insurance plans and other perquisite plans and programs (collectively, the “Benefit Plans”) for which employees of
Executive’s rank in the Company are generally eligible, in each case consistent with the Company’s then-current practice
as approved by the Board from time to time. Notwithstanding the foregoing, if Executive wishes, an alternative benefit plan (as
a non-limiting example, full coverage (including all subpart and subplans and available optional plans) from and related to Medicare)
may be selected by Executive and the Company will pay the same percentage of those premiums (but a minimum of 75%) as it pays
other executive-level officers in the Company. To the extent that the Company is unable to provide any of the foregoing benefits
to Executive pursuant to the terms of the applicable plans or without incurring unreasonable cost or expense, the Company shall
have the option, in its discretion, in lieu of providing such benefit or benefits to Executive, to provide Executive with a cash
payment or payments reasonably determined by the Board to compensate Executive for the Company’s inability to provide such
benefits to Executive.

 

(d)
Business Expenses. During the Employment Period, the Company shall reimburse Executive for all reasonable business expenses
incurred by Executive in the course of performing Executive’s duties under this Agreement, against presentation by Executive
to the Company of reasonably detailed receipts or records relating thereto.

 

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(e)
Office and Supplies. At all times during the Employment Period, the Company shall maintain and reserve for the exclusive
use of Executive executive-level (no lesser in any way than the office of any other executive officer in the Company) office space
in the same general portion of the company’s general headquarters as the CEO has his/her main office, and there shall be
no limitation of use of such office (without limitation, for example this office can be used for Executive’s work for any
other company or organization). In addition, Company shall at all times supply Executive at Company’s cost with executive-level
office furniture, computers, printers, phones and the like chosen at the sole reasonable discretion of Executive for use in his
office including technology or fashion or decorating or functionality updates, including additional such items for use in his
other offices or home office anywhere in the world, or while traveling whether or not traveling for the company, and there shall
be no limitation of use of such items (without limitation, for example these items can be used for Executive’s work for
any other company or organization).

 

4.
Employment Period.

 

(a)
The Employment Period will begin on the Effective Date and shall continue until December 31, 2021 (the “Initial Employment
Period”), and thereafter will automatically renew for one year terms unless either party gives the other party 30 days’
notice of its election not to renew, or until Executive’s employment hereunder is terminated in accordance with Section
4(b). Any leave of absence in which Executive does not work for the Company for one month or more to serve religious missions
or other not-for-profit activities will not toll the Employment Period and during such leave of absence, Executive will be paid
full Salary payments and benefits hereunder.

 

(b)
The Employment Period and Executive’s employment hereunder (i) will terminate upon Executive’s death or permanent
disability or incapacity, (ii) may be terminated by the Company at any time with or without Cause (as defined in Section 4(f)),
and (iii) may be terminated by Executive at any time with or without Good Reason (as defined in Section 4(g)). (The date
of termination associated with each and all of these reasons for termination is referred to hereafter as the “Termination
Date.”)

 

(c)
If Executive’s employment hereunder is terminated by the Company for Cause or by Executive without Good Reason, then Executive
will be entitled to receive only Executive’s accrued, unpaid Salary, any reimbursements owed for business expenses incurred
on or prior to the Termination Date and any accrued but unpaid benefits due and owing to Executive under any Benefit Plans through
the Termination Date (collectively, the “Accrued Obligations”).

 

(d)
If Executive’s employment hereunder is terminated without Cause by the Company or by Executive with Good Reason during the
Employment Period, then Executive shall receive the Accrued Obligations and, with the understanding that Executive shall not apply
for unemployment compensation chargeable to the Company during the twelve months following the Termination Date, the Company shall
pay Executive a one-time immediate lump sum of 100% of the remaining Salary and benefits that would have been paid from the Termination
Date until the end of the Initial Employment Term or, if the termination occurs following the Initial Employment Term, during
the calendar year in which the Termination Date occurred. Such lump sum shall be paid to Executive no later than March 15th
of the calendar year following the calendar year in which the Termination Date occurred. For purposes of the foregoing (as
well as Section 4(e) below), the amount payable with respect to the remaining benefits that would have been paid over the Employment
Period shall be determined in good faith as the present value of the Company contributions that would have been made during the
remaining Initial Employment Period on Executive’s behalf.

 

(e)
If Executive’s employment hereunder is terminated as a result of Executive’s death, permanent disability or incapacity
during the Employment Period, Executive or Executive’s representatives or beneficiaries shall receive the Accrued Obligations
or if not applicable the equivalent value in cash and the Company shall pay Executive or Executive’s representatives or
beneficiaries a one-time immediate lump sum of 90% of the remaining Salary and benefits that would have been paid over the Initial
Employment Period if Executive had not been terminated or, if the termination occurs following the Initial Employment Term, during
the calendar year in which the Termination Date occurred. The Company’s payment of the amounts due pursuant to this Section
2(e) to any person who the Company reasonably believes is authorized to act on behalf of the Executive’s representatives
or beneficiaries shall be deemed to satisfy the Company’s obligations pursuant to this Section 2(e) in full. The Company
may, should it determine to do so, purchase key man insurance in an amount sufficient to cover the obligation to Executive’s
representatives and beneficiaries who are agreed to be intended third-party beneficiaries to this provision of this Agreement.
The Company’s obligations under this Agreement are not limited to any payment by any insurance company.

 

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(f)
For purposes of the Agreement, “Cause” means Executive’s conviction of or entering a guilty plea to any felony
or any crime involving moral turpitude, fraud, misrepresentation, embezzlement, theft or sexual harassment.

 

(g)
For purposes of this Agreement, “Good Reason” shall mean Executive’s resignation following a Change of Control
as defined in paragraph 7 herein or following the initial occurrence (without Executive’s consent) of any of the following,
provided Executive has provided the Company with written notice setting forth in reasonable detail the grounds for such resignation
within 15 days following such initial occurrence, and provided further the Company has failed to remedy the stated grounds for
such resignation within 30 days following its receipt of such notice: (i) the Company substantially reduces the aggregate value
of Executive’s Salary or the benefits provided to Executive under the Benefit Plans or other benefit obligations; (ii) the
Company requires that Executive be based at a particular location; or (iii) any other action or inaction that constitutes a breach
of this Agreement by the Company. A resignation with Good Reason may occur only within 30 days following the expiration of the
Company’s 30-day cure period described above.

 

5.
Representations and Warranties.

 

(a)
Executive hereby represents and warrants to the Company that upon execution and delivery of this Agreement, this Agreement will
be the valid and binding obligation of Executive, enforceable against Executive in accordance with its terms.

 

(b)
The Company hereby represents and warrants to Executive that upon execution and delivery of this Agreement, this Agreement will
be the valid and binding obligation of the Company, enforceable against the Company in accordance with its terms.

 

6.
Indemnification. With respect to all actions taken relating to the Company by Executive during the Employment Period and
during any previous activity relating to the Company or any future activity relating to the Company (as a non-limiting example
during any future cooperation in a patent infringement suit filed by the Company against a third party), the Company agrees to
fully indemnify, hold harmless and defend Executive and Executive’s estate, heirs, and Affiliates on the same basis as the
officers of the Company, in connection with any claims, liabilities, actions, suits or proceedings to which Executive or his estate,
heirs or Affiliates is, or is threatened to be made, a party, and Executive shall be covered by the Company’s executive
indemnification insurance during all such periods in indemnification to the same extent as the officers of the Company.

 

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7.
Successors and Assigns. This Agreement will bind and inure to the benefit of and be enforceable by Executive and the Company
and their respective heirs, successors and permitted assigns. Neither party may assign any of its rights or assign or delegate
any of its obligations hereunder without the prior written consent of the other party hereto; provided, however, that the Company
may assign this Agreement in connection with any Change of Control provided Executive is first terminated without Cause by the
Company and all termination-associated payments to Executive have been made and all other termination-associated obligations have
been fulfilled by the Company. “Change of Control” means a change in ownership or control of Company following the
Effective Date effected through any of the following transactions: (i) any consolidation or merger of Company with or into any
other entity, or any other corporate reorganization, other than any consolidation, merger or reorganization in which the members
of the Company immediately prior to such transaction, continue to hold at least a majority of the voting power of the surviving
entity in substantially the same proportions (or, if the surviving entity is a wholly owned subsidiary, its parent) immediately
after such transaction; (ii) any transaction or series of related transactions to which the Company is a party in which in excess
of 50% of the Company’s voting power is transferred; or (iii) a sale, lease, exclusive license or other disposition of all
or substantially all of the assets of Company; provided, however, that a Change of Control does not include (x) any transaction
or series of transactions principally for bona fide equity financing purposes in which cash is received by the Company or any
successor or indebtedness of the Company is cancelled or converted or a combination thereof or (y) a change in ownership or control
of the Company effected through any consolidation or merger for the principal purpose of changing the domicile of the Company.
A public offering of the Company’s securities will be deemed to constitute a Change of Control if in excess of 50% of the
Company’s voting power is issued pursuant to such offering.

 

8.
Notices. All notices, demands or other communications to be given or delivered under or by reason of the provisions of
this Agreement shall be in writing and will be deemed to have been given (a) on the date established by the sender as having been
delivered personally, (b) on the date delivered by a private courier with signature by the recipient as established by the sender
by evidence obtained from such courier, or (c) on the date sent by facsimile or email transmission (with acknowledgement by recipient
of complete transmission). Notices, demands or communications to any party hereto will, unless another address is specified in
writing pursuant to this Section 8, be sent to the addresses indicated below.

 

	
        If to Executive:

        Terry V. Pearce

        125 E Watkins Lane

        Alpine, Utah 84004

        Email: terry@onpurple.com
	
        If to the Company:

        Purple Innovation, Inc.

        123 E 200 N

        Alpine, Utah 84004

        Attn: Chief Legal Officer

        Email: casey@onpurple.com

 

9.
Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be valid under
applicable law; but, if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any
applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision
or any other jurisdiction, but except as otherwise set forth in this Agreement, this Agreement will be reformed, construed and
enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

 

10.
Complete Agreement. This Agreement and any documents or agreements referred to herein and all exhibits and schedules referred
to herein or therein embody the complete agreement and understanding between the parties with respect to the subject matter hereof
and supersedes and preempts any prior understandings, agreements or representations by or among the parties, written or oral,
which may have related to the subject matter hereof in any way. Without limiting the generality of the foregoing, this Agreement
amends and restates and supersedes and replaces the Employment Agreement by and between the Executive and WonderGel, LLC dba Purple,
which was effective as of December 31, 2016.

 

11.
Signatures; Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed an original
but all of which together will constitute one and the same instrument. For purposes hereof, a facsimile signature, portable document
format (PDF) signature or signature sent by electronic transmission will be considered an original signature.

 

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12.
Governing Law. All issues and questions concerning the construction, validity, enforcement and interpretation of this Agreement
will be governed by, and construed in accordance with, the internal laws of the State of Utah, without giving effect to any choice
of law or conflict of law rules or provisions (whether of the State of Utah or any other jurisdiction).

 

13.
Survival. The provisions of Sections 6 through 10, 12, 13, and 15 shall survive the
termination of Executive’s employment and the termination of this Agreement for any reason. Upon termination of Executive,
all amounts owing to Executive hereunder shall be paid to Executive within one week of termination of this Agreement or Executive’s
employment hereunder, whichever is earlier.

 

14.
Headings; No Strict Construction. The headings of the paragraphs and sections of this Agreement are inserted for convenience
only and will not be deemed a part of or affect the construction or interpretation of any provision hereof. The language used
in this Agreement will be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule of
strict construction will be applied against any party.

 

15.
Code Section 409A. The parties hereto intend that the payments and benefits provided in this Agreement either will be exempt
from Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), or be provided in a manner that complies
with Section 409A of the Code and any ambiguity herein shall be interpreted so as to be consistent with the intent of this paragraph.
Further, if Executive is a “specified employee” (as such term is defined under Section 409A of the Code) at the time
of a termination of employment and the deferral of the commencement of any payments or benefits otherwise payable hereunder as
a result of such termination of employment is necessary in order to prevent any accelerated recognition of income or additional
tax under Section 409A of the Code, then the Company will defer the commencement of the payment of any such payments or benefits
hereunder (without any reduction in payments or benefits ultimately paid or provided to Executive) until the date that is at least
six (6) months following Executive’s termination of employment with the Company (or the earlier date of Executive’s
death), whereupon the Company will promptly pay Executive a lump-sum amount equal to the cumulative amounts that would have otherwise
been previously paid to Executive under this Agreement during the period in which such payments or benefits were deferred. In
addition, if following the date hereof, the Company or Executive reasonably determines that any amounts or benefits payable under
this Agreement may be subject to Section 409A of the Code, the Company and Executive shall work together to adopt such amendments
to this Agreement or adopt other policies or procedures (including amendments, policies and procedures with retroactive effect),
or take any other commercially reasonable actions necessary or appropriate to (i) exempt the compensation and benefits payable
under this Agreement from Section 409A of the Code and/or (ii) preserve the intended tax treatment of the compensation and benefits
provided with respect to this Agreement or (iii) comply with the requirements of Section 409A of the Code and related Department
of Treasury guidance. Notwithstanding anything contained herein to the contrary, in no event whatsoever shall the Company be liable
for any additional tax, interest or penalty that may be imposed on Executive under Section 409A of the Code, or damages for failing
to comply with Section 409A of the Code.

 

16.
Amendment and Waiver. The provisions of this Agreement may be amended or waived only with the prior written consent of
the Company and Executive, and no course of conduct or failure or delay in enforcing the provisions of this Agreement shall affect
the validity, binding effect or enforceability of this Agreement.

 

17.
Read and Understood. Executive has read this Agreement carefully and understands each of its terms and conditions. Executive
has sought independent legal counsel of Executive’s choice to the extent Executive deemed such advice necessary in connection
with the review and execution of this Agreement.

 

[Signature
Page Follows]

 

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IN
WITNESS WHEREOF, the parties hereto have executed this Employment Agreement as of the date first written above.

 

	 	Company:
	 	 
	 	Purple
    Innovation, Inc.
	 	 	 
	 	By:	/s/
Sam Bernards
	 	 	Sam
    Bernards, CEO
	 	 	 
	 	Executive:
	 	 
	 	/s/ Terry V. Pearce

	 	Terry V. Pearce

 

[Signature Page to Terry Pearce Employment
Agreement]

 

    7

     

    

 

Exhibit
A

 

See
Attached

 

    8

     

    

 

Confidential
Purple Innovation, Inc.

 

Proprietary
Information and Invention Assignment Agreement

 

In
consideration, and as a condition, of my employment with Purple Innovation, Inc. or any of its subsidiaries (collectively, the
“Company”), I agree, effective as of February 2, 2018 (the “Effective Date”),
as follows:

 

1.
Nondisclosure

 

1.1.
Recognition of the Company’s Rights; Nondisclosure. At all times following the Effective Date during my performance
of services (the “Services”) for the Company, whether as an officer, director, manager, employee or
contractor or otherwise (the “Service Period”), and thereafter, I will hold in strictest confidence
and will not disclose, use, lecture upon, or publish any of the Company’s Proprietary Information (defined below), except
as such disclosure, use, or publication may be required in connection with my work for the Company, or unless a director or officer
of the Company expressly authorizes such in writing. I will obtain the Company’s written approval before publishing or submitting
for publication any material (written, verbal, or otherwise) that incorporates any Proprietary Information and/or disparages the
Company. The foregoing restrictions do not apply to any information that (i) is in or enters the public domain, through no wrongdoing
of my own or any third party; or (ii) has been disclosed to me by a third party who is not subject to such restriction and who
has not directly or indirectly received such information through the wrongdoing of any third party; provided, however, that the
limitations of this sentence will not in any way limit any other duties or obligations that I have, or may have in the future,
with respect to the Company in accordance with any other written agreement with the Company or as a result of any express or implied
duty or obligation that I may have as a member, officer, manager, employee, contractor or director of the Company. I hereby assign
to the Company any rights I may have or acquire in such Proprietary Information and recognize that all Proprietary Information
will be the sole property of the Company and its assigns.

 

1.2.
Proprietary Information. The term “Proprietary Information” means any and all confidential and/or
proprietary knowledge, data, or information of the Company. By way of illustration but not limitation, “Proprietary Information”
includes (a) trade secrets, inventions, mask works, ideas, materials, concepts, processes, formulas, source and object codes,
data, programs, other works of authorship, know-how, improvements, discoveries, developments, designs and techniques (hereinafter
collectively referred to as “Inventions”); and (b) information regarding research, development,
products, marketing and selling, business plans, budgets and unpublished financial statements, licenses, prices and costs, suppliers
and customers and the existence of any business discussions, negotiations, or agreements between the Company and any third party;
and (c) information regarding the skills and compensation of the Company’s employees, contractors or other service
providers.

 

1.3.
No Improper Use of Information of Prior Employers and Others. During the Service Period, I will not improperly use or disclose
any confidential information or trade secrets, if any, of any former employer or any other person to whom I have an obligation
of confidentiality, and I will not bring onto the premises of the Company any unpublished documents or any property belonging
to any former employer or any other person to whom I have an obligation of confidentiality unless consented to in writing by that
former employer or person. I will use in the performance of my duties only information that is generally known and used by persons
with training and experience comparable to my own, which is common knowledge in the industry or otherwise legally in the public
domain, or which is otherwise provided or developed by the Company.

 

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1.4.
Third Party Information. I understand, in addition, that the Company has received and in the future will receive from third
parties confidential or proprietary information (“Third Party Information”) subject to a duty on the
Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. During
the term of my Service Period and thereafter, I will hold Third Party Information in the strictest confidence and will not disclose
to anyone (other than the Company personnel who need to know such information in connection with their work for the Company) or
use, except in connection with my work for the Company, Third Party Information unless expressly authorized by a manager or officer
of the Company in writing.

 

2.
Assignment of Inventions

 

2.1.
Proprietary Rights. The term “Proprietary Rights” means all trade secret, patent, copyright,
trademark, mask work, moral rights, know-how and any and all other intellectual property rights throughout the world.

 

2.2.
Excluded Inventions and Excluded Future Inventions. As set forth on Exhibit A attached hereto, inventions, patented
or unpatented, that (i) I made prior to the Effective Date, or (ii) that have been owned prior to the Effective Date in whole
or part by me through EdiZONE, LLC or licensed by EdiZONE, LLC to third parties (clauses (i) and (ii) are collectively, the “Excluded
Inventions“). To preclude any possible uncertainty, I have set forth on Exhibit A attached hereto a complete
list of all Excluded Inventions (and related patents, trademarks and copyrights) relevant to the subject matter of my Services
that I have, alone or jointly with others, conceived, developed, or reduced to practice or caused to be conceived, developed or
reduced to practice prior to the Effective Date, that constitute my property or the property of third parties and that the Company
agrees will be excluded from the scope of this Agreement. That certain Amended and Restated Confidential Assignment and License
Back Agreement executed November 2, 2017 and effective December 27, 2016 governs the rights of the Company and EdiZONE with respect
to the Excluded Inventions.

 

2.3.
Assignment of Inventions. Subject to Section 2.4, I hereby assign and agree to assign in the future (when any
such Inventions or Proprietary Rights are first reduced to practice or first fixed in a tangible medium, as applicable) to the
Company all my right, title, and interest in and to any and all Inventions (and all Proprietary Rights with respect thereto) whether
or not patentable or registrable under copyright or similar statutes, made or conceived or reduced to practice or learned by me,
either alone or jointly with others, during the period of my Service Period with the Company. Inventions (and all Proprietary
Rights with respect thereto) assigned to the Company, or to a third party as directed by the Company pursuant to this Section 2,
are hereinafter referred to as “Company Inventions.” I hereby forever waive and agree not to assert
any and all Proprietary Rights I may have in or with respect to any Company Invention. Notwithstanding the date of this Agreement,
my assignment of rights to the Company as provided in this Agreement is intended to pertain to Inventions and Proprietary Rights
created from my earliest performance of services for, or on behalf of, the Company and continue for so long as I continue providing
services for, or on behalf of, the Company.

 

2.4.
Nonassignable Inventions. I recognize that, in the event of a specifically applicable state law, regulation, rule, or public
policy (“Specific Inventions Law”), this Agreement may not be deemed to require assignment of any invention
that qualifies fully for protection under a Specific Inventions Law by virtue of the fact that any such invention was, for example,
developed entirely on my own time without using the Company’s equipment, supplies, facilities, or trade secrets and neither
related to the Company’s actual or anticipated business, research or development, nor resulted or was derived from work
performed by me directly or indirectly for the Company. In the absence of a Specific Inventions Law, the preceding sentence will
not apply.

 

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2.5.
Obligation to Keep the Company Informed. During my Service Period and for one year after termination of my Service Period
with the Company, I will promptly disclose to the Company fully and in writing all Inventions (and all Proprietary Rights with
respect thereto) authored, conceived, or reduced to practice by me, either alone or jointly with others. In addition, I will promptly
disclose to the Company all patent applications filed by me or on my behalf or in which I am named as an inventor or co-inventor
within one year after termination of Service Period. The Company will keep in confidence and will not use for any purpose or disclose
to third parties without my consent any confidential information disclosed in writing to the Company pursuant to this Section
2.5 of this Agreement relating to my Inventions. I will preserve the confidentiality of any Company Invention (and all Proprietary
Rights with respect thereto) that results from my Services during the Service Period.

 

2.6.
Works for Hire. I acknowledge that all original works of authorship that are made by me (solely or jointly with others)
within the scope of my Services during the Service Period and which are protectable by copyright are “works made for hire,”
pursuant to United States Copyright Act (17 U.S.C., Section 101).

 

2.7.
Enforcement of Proprietary Rights. I will assist the Company in every proper way to obtain, and from time to time enforce,
United States and foreign Proprietary Rights relating to the Company Inventions in any and all countries. To that end I will execute,
verify, and deliver such documents and perform such other acts (including appearances as a witness) as the Company may reasonably
request for use in applying for, obtaining, perfecting, evidencing, sustaining and enforcing such Proprietary Rights and the assignment
thereof. In addition, I will execute, verify and deliver assignments of such Proprietary Rights to the Company or its designee.
My obligation to assist the Company with respect to Proprietary Rights relating to such Company Inventions in any and all countries
will continue beyond the termination of my Service Period, but the Company will compensate me at a reasonable rate after my termination
for the time actually spent by me at the Company’s request on such assistance.

 

2.8.
Further Assurances. If the Company is unable for any reason, after reasonable effort, to secure my signature on any document
needed in connection with the actions specified in the preceding paragraph, I hereby irrevocably designate and appoint the Company
and its duly authorized officers and agents as my agent and attorney in fact, which appointment is coupled with an interest, to
act for and in my behalf to execute, verify, and file any such documents and to do all other lawfully permitted acts to further
the purposes of this Section 2 with the same legal force and effect as if executed by me. I hereby waive, assign and
quitclaim to the Company any and all claims, of any nature whatsoever, which I now or may hereafter have for infringement of any
Proprietary Rights assigned hereunder to the Company.

 

2.9.
Presumption of Ownership. Due to the difficulty of establishing when an Invention (and all Proprietary Rights with respect
thereto) is first conceived or developed, whether it results from access to the Company’s actual or anticipated business
or research or development, or whether it is a direct or indirect result or derivation of any work I perform for the Company,
I hereby acknowledge and agree that ownership of all Inventions (and all Proprietary Rights with respect thereto) conceived, developed,
suggested or reduced to practice by me, alone or jointly with others during my Service Period shall be presumed to belong to the
Company and I shall have the burden of proof to prove otherwise.

 

3.
Records. Unless otherwise directed or requested by the Company, I agree to
keep and maintain adequate and current records (in the form of notes, sketches, drawings and in any other form that may be required
by the Company) of all Proprietary Information developed by me and all Inventions made by me during my Service Period with the
Company, which records will be available to and remain the sole property of the Company at all times.

 

    11

     

    

 

4.
No Conflicts or Solicitation. I acknowledge that during my Service Period
I will have access to and knowledge of Proprietary Information. To protect the Company’s Proprietary Information, I agree
that during the period of my Service Period with the Company I will not, without the Company’s express written consent,
engage in any other business activity that is competitive with the Company, or would otherwise conflict with my obligations to
the Company. I have entered into a Non-Competition and Non-Solicitation Agreement of even date herewith.

 

5.
No Conflicting Obligation. I represent that my performance of all the terms
of this Agreement and my performance of the Services do not and will not breach any non-compete agreement or any agreement to
keep in confidence information acquired by me in confidence or in trust prior to my Service Period with the Company. I have not
entered into, and I agree I will not enter into, any agreement either written or oral in conflict with this Agreement.

 

6.
Return of Company Documents. Upon termination of the Service Period or upon
request by the Company during the course of my Service Period, I will deliver to the Company any and all property, equipment,
drawings, notes, memoranda, specifications, devices, formulas, and documents, together with all copies thereof, and any other
material containing or disclosing any Company Inventions, Third Party Information or Proprietary Information of the Company. I
agree that I will not copy, delete or alter any information contained on my Company computer, cell phone or other electronic storage
and communication device before I return it to the Company. I further agree that any property situated on the Company’s
premises or otherwise owned by the Company, including cloud based and onsite based storage services or devices for and access
of electronic data or media, filing cabinets or other work areas, is subject to inspection by the Company personnel at any time
with or without notice. I further agree that I will not store any of the Company’s information in locations or on electronic
devices which are not accessible by the Company, that I will use only Company provided or approved electronic devices, such as
but not limited to cell phones, tablets, digital photographs and the like, and that the Company has the right to inspect any of
such personal devices which contain such information and to require the deletion or other permanent destruction of the same. Prior
to leaving, I will cooperate with the Company in completing and signing the Company’s termination statement.

 

7.
Legal and Equitable Remedies. Because my services are personal and unique
and because I may have access to and become acquainted with the Company’s Proprietary Information, the Company has the right
to enforce this Agreement and any of its provisions by injunction, specific performance or other equitable relief, without bond
and without prejudice to any other rights and remedies that the Company may have for a breach of this Agreement or an infringement
of its intellectual property rights or other rights.

 

8.
Notices. All notices, payments, demands or
communications required or permitted to be given by any provision of this Agreement shall be in writing and shall be deemed to
be delivered, given and received for all purposes (a) as of the date and time of actual receipt, in the case of notices delivered
personally; (b) one calendar day after deposit with a nationally recognized overnight delivery service; (c) if sent
by email, or other electronic communication processes, upon confirmed receipt by recipient; or (d) five calendar days after
deposit in registered or certified United States mail return receipt requested, as applicable. If not emailed, such notices, payments,
demands or communications shall be delivered personally to the recipient or to an officer of the recipient to whom the same is
directed, or sent by registered or certified United States mail return receipt requested, or by nationally recognized overnight
delivery service, addressed at the addresses specified on the signature page hereto or to such other address as may be specified
from time to time by notice to parties hereto.

 

    12

     

    

 

9.
Notification of New Employer. If the Service
Period ceases for any reason (such as from termination of my employment by myself or the Company), I hereby consent to the notification
of my new employer of my rights and obligations under this Agreement.

 

10.
General Provisions

 

10.1.
Survival and Assignment by the Company. I understand that my obligation under this Agreement will continue in accordance
with its express terms regardless of any changes in title, position, duties, salary, compensation or benefits, or other terms
and conditions of my Services. I further understand that my obligations under this Agreement will continue following the termination
of my Services regardless of the manner of such termination and will be binding upon my heirs, executors, and administrators.
The Company will have the right to assign this Agreement to its affiliates and successors. I expressly consent to be bound by
the provisions of this Agreement for the benefit of the Company or any parent, subsidiary, or affiliate to whom I may be transferred
without the necessity that this Agreement be re-executed at the time of such transfer.

 

10.2.
Severability. In case any provision (or portions thereof) contained in this Agreement will, for any reason, be held invalid,
illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability will not affect the other provisions
of this Agreement, and this Agreement will be construed as if such invalid, illegal, or unenforceable provision had never been
contained herein.

 

10.3.
Governing Law. This Agreement and actions taken hereunder will be governed and construed in accordance with the laws of
the State of Utah, applied without regard to conflict of law principles. I hereby expressly consent to the personal jurisdiction
of the state and federal courts located in Salt Lake City, Utah for any lawsuit filed there against me by the Company arising
from or relating to this Agreement.

 

10.4.
Successors and Assigns. This Agreement will be binding upon my heirs, executors, administrators, and other legal representatives
and will be for the benefit of the Company, its successors, and its assigns.

 

10.5.
Service Period. I acknowledge and agree that my relationship with the Company is governed by the Amended and Restated Employment
Agreement of even date hereof.

 

10.6.
Waiver. No waiver by the Company of any breach of this Agreement will be a waiver of any preceding or succeeding breach.
No waiver by the Company of any right under this Agreement will be construed as a waiver of any other right. The Company will
not be required to give notice to enforce strict adherence to all terms of this Agreement.

 

10.7.
Entire Agreement. The obligations pursuant to Sections 1 and 2 of this Agreement will apply to any time during
which I was previously employed, or am in the future employed, by the Company as a consultant if no other agreement governs nondisclosure
and assignment of inventions during such period. This Agreement and the offer letter of even date herewith is the final, complete
and exclusive agreement of the parties with respect to the subject matter hereof and thereof and supersedes and merges all prior
discussions between us. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement,
will be effective unless in writing and signed by the party to be charged. Any subsequent change or changes in my duties, salary
or compensation will not affect the validity or scope of this Agreement.

 

10.8.
Advice of Counsel. I ACKNOWLEDGE THAT, IN EXECUING THIS AGREEMENT, I HAVE HAD THE OPPORTUNITY TO SEEK THE ADVICE OF INDEPENDENT
LEGAL COUNSEL, AND I HAVE READ AND UNDERSTOOD ALL OF THE TERMS AND PROVISIONS OF THIS AGRREEMENT. THIS AGREEMENT MAY NOT BE CONSTRUED
AGAINST ANY PARTY BY ANY REASON OF THE DRAFTING FOR PREPARATION HEREOF.

 

10.9.
Counterparts. This Agreement may be executed in any number of counterparts, and by the different parties hereto in separate
counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one
and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or other electronic
means (e.g., electronic mail or PDF) shall be effective as delivery of a manually executed counterpart to this Agreement.

 

[signature
page follows]

 

    13

     

    

 

IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of the date set forth below.

 

	Sign: 	
	 	 	Date: 	

Print: Terry Pearce

 

Acknowledged
and agreed:

 

 

	Purple
    Innovation, inc.

    

    By:                                          

    Name: Samuel D. Bernards

    Its: Chief Executive Officer

 

[Signature
page to Proprietary Information and Invention Assignment Agreement]

 

[Signature Page to PIIA]

 

    14Exhibit
10.8

 

PURPLE
INNOVATION, INC.

 

2017
EQUITY INCENTIVE PLAN

 

1.
Purpose. The purpose of the Purple Innovation, Inc. 2017 Equity Incentive Plan is to provide a means through which the
Company and its Affiliates may attract and retain key personnel and to provide a means whereby directors, officers, managers,
employees, consultants and advisors of the Company and its Affiliates can acquire and maintain an equity interest in the Company,
or be paid incentive compensation, which may (but need not) be measured by reference to the value of Common Shares, thereby strengthening
their commitment to the welfare of the Company and its Affiliates and aligning their interests with those of the Company’s
stockholders.

 

2.
Definitions. The following definitions shall be applicable throughout this Plan:

 

(a)
“Affiliate” means (i) any person or entity that directly or indirectly controls, is controlled by or
is under common control with the Company and/or (ii) to the extent provided by the Committee, any person or entity in which the
Company has a significant interest as determined by the Committee in its discretion. The term “control” (including,
with correlative meaning, the terms “controlled by” and “under common control with”), as applied to any
person or entity, means the possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of such person or entity, whether through the ownership of voting or other securities, by contract or otherwise.

 

(b)
“Award” means, individually or collectively, any Incentive Stock Option, Nonqualified Stock Option,
Stock Appreciation Right, Restricted Stock, Restricted Stock Unit, Stock Bonus Award or Performance Compensation Award granted
under this Plan.

 

(c)
“Award Agreement” means an agreement made and delivered in accordance with Section 15(a) of this Plan
evidencing the grant of an Award hereunder.

 

(d)
“Board” means the Board of Directors of the Company.

 

(e)
“Business Day” means any day other than a Saturday, a Sunday or a day on which banking institutions
in New York City are authorized or obligated by federal law or executive order to be closed.

 

(f)  
“Cause” means, in the case of a particular Award, unless the applicable Award Agreement states otherwise,
(i) the Company or an Affiliate having “cause” to terminate a Participant’s employment or service, as defined
in any employment or consulting agreement or similar document or policy between the Participant and the Company or an Affiliate
in effect at the time of such termination or (ii) in the absence of any such employment or consulting agreement, document or policy
(or the absence of any definition of “Cause” contained therein), (A) a continuing material breach or material default
(including, without limitation, any material dereliction of duty) by Participant of any agreement between the Participant and
the Company, except for any such breach or default which is caused by the physical disability of the Participant (as determined
by a neutral physician), or a continuing failure by the Participant to follow the direction of a duly authorized representative
of the Company; (B) gross negligence, willful misfeasance or breach of fiduciary duty to the Company or Affiliate of the Company
by the Participant; (C) the commission by the Participant of an act of fraud, embezzlement or any felony or other crime of dishonesty
in connection with the Participant’s duties to the Company or Affiliate of the Company; or (D) conviction of the Participant
of a felony or any other crime that would materially and adversely affect: (i) the business reputation of the Company or Affiliate
of the Company or (ii) the performance of the Participant’s duties to the Company or an Affiliate of the Company. Any determination
of whether Cause exists shall be made by the Committee in its sole discretion.

 

     

     

    

 

(g)
“Change in Control” shall, in the case of a particular Award, unless the applicable Award Agreement
states otherwise or contains a different definition of “Change in Control,” be deemed to occur upon:

 

(i)
A tender offer (or series of related offers) shall be made and consummated for the ownership of 50% or more of the outstanding
voting securities of the Company, unless as a result of such tender offer more than 50% of the outstanding voting securities of
the surviving or resulting corporation or entity shall be owned in the aggregate by (A) the shareholders of the Company (as of
the time immediately prior to the commencement of such offer), or (B) any employee benefit plan of the Company or its Subsidiaries,
and their Affiliates;

 

(ii)  
The Company shall be merged or consolidated with another corporation, unless as a result of such merger or consolidation more
than 50% of the outstanding voting securities of the surviving or resulting corporation or entity shall be owned in the aggregate
by (A) the shareholders of the Company (as of the time immediately prior to such transaction); provided, that a merger or consolidation
of the Company with another company which is controlled by persons owning more than 50% of the outstanding voting securities of
the Company shall constitute a Change in Control unless the Committee, in its discretion, determine otherwise, or (B) any employee
benefit plan of the Company or its Subsidiaries, and their Affiliates;

 

(iii)
The Company shall sell substantially all of its assets to another entity that is not wholly owned by the Company, unless as a
result of such sale more than 50% of such assets shall be owned in the aggregate by (A) the shareholders of the Company (as of
the time immediately prior to such transaction), or (B) any employee benefit plan of the Company or its Subsidiaries, and their
Affiliates;

 

(iv)
A Person (as defined below) shall acquire 50% or more of the outstanding voting securities of the Company (whether directly,
indirectly, beneficially or of record), unless as a result of such acquisition more than 50% of the outstanding voting
securities of the surviving or resulting corporation or entity shall be owned in the aggregate by (A) the shareholders of the
Company (as of the time immediately prior to the first acquisition of such securities by such Person), or (B) any employee
benefit plan of the Company or its Subsidiaries, and their Affiliates; or

 

(v)
The individuals who, as of the date hereof, constitute the members of the Board (the “Current Board Members”) cease,
by reason of a financing, merger, combination, acquisition, takeover or other non-ordinary course transaction affecting the Company,
to constitute at least a majority of the members of the Board unless such change is approved by the Current Board Members.

 

For
purposes of this Section 2(g), ownership of voting securities shall take into account and shall include ownership as determined
by applying the provisions of Rule 13d-3(d)(I)(i) (as in effect on the date hereof) under the Securities Exchange Act of 1934,
as amended (the “Exchange Act”). In addition, for such purposes, “Person” shall have the meaning given
in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof; however, a Person shall not
include (A) the Company or any of its Subsidiaries; (B) a trustee or other fiduciary holding securities under an employee benefit
plan of the Company or any of its Subsidiaries; (C) an underwriter temporarily holding securities pursuant to an offering of such
securities; or (D) a corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportion
as their ownership of stock of the Company.

 

(h)
“Code” means the Internal Revenue Code of 1986, as amended, and any successor thereto. References in
this Plan to any section of the Code shall be deemed to include any regulations or other interpretative guidance issued by any
governmental authority under such section, and any amendments or successor provisions to such section, regulations or guidance.

 

(i)
“Committee” means a committee of at least two people as the Board may appoint to administer this Plan
or, if no such committee has been appointed by the Board, the Board. Unless altered by an action of the Board, the Committee shall
be the Compensation Committee of the Board.

 

(j)
“Common Shares” means the Class A common stock, par value $0.0001 per share, of the Company (and any
stock or other securities into which such common shares may be converted or into which they may be exchanged).

 

(k)
“Company” means Purple Innovation, Inc., a Delaware corporation, together with its successors and assigns.

 

    	 	2	 

     

    

 

(l)
“Current Board Members” has the meaning given such term in the definition of “Change in Control.”

 

(m)
“Date of Grant” means the date on which the granting of an Award is authorized, or such other date as
may be specified in such authorization.

 

(n)
“Disability” means a “permanent and total” disability incurred by a Participant while in
the employ or service of the Company or an Affiliate. For this purpose, a permanent and total disability shall mean that the Participant
is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment
that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months.
The determination of whether a Participant has incurred a permanent and total disability shall be made by a physician designated
by the Committee, whose determination shall be final and binding.

 

(o)
“Effective Date” means the date as of which this Plan is adopted by the Board, subject to Section 3
of this Plan.

 

(p)
“Eligible Director” means a person who is (i) a “non-employee director” within the meaning
of Rule 16b-3 under the Exchange Act, and (ii) an “outside director” within the meaning of Section 162(m) of the Code.

 

(q)
“Eligible Person” means any (i) individual employed by the Company or an Affiliate; provided,
however, that no such employee covered by a collective bargaining agreement shall be an Eligible Person unless and
to the extent that such eligibility is set forth in such collective bargaining agreement or in an agreement or instrument relating
thereto; (ii) director of the Company or an Affiliate; or (iii) consultant or advisor to the Company or an Affiliate, provided
that if the Securities Act applies such persons must be eligible to be offered securities registrable on Form S-8 under the Securities
Act.

 

(r)  
“Exchange Act” has the meaning given such term in the definition of “Change in Control,”
and any reference in this Plan to any section of (or rule promulgated under) the Exchange Act shall be deemed to include any rules,
regulations or other interpretative guidance issued by any governmental authority under such section or rule, and any amendments
or successor provisions to such section, rules, regulations or guidance.

 

(s)
“Exercise Price” has the meaning given such term in Section 7(b) of this Plan.

 

(t)  
“Fair Market Value”, unless otherwise provided by the Committee in accordance with all applicable laws,
rules regulations and standards, means, on a given date, (i) if the Common Shares are listed on a national securities exchange,
the closing sales price on the principal exchange of the Common Shares on such date or, in the absence of reported sales on such
date, the closing sales price on the immediately preceding date on which sales were reported, or (ii) if the Common Shares are
not listed on a national securities exchange, the mean between the bid and offered prices as quoted by any nationally recognized
interdealer quotation system for such date, provided that if the Common Shares are not quoted on an interdealer quotation system
or it is determined that the fair market value is not properly reflected by such quotations, Fair Market Value will be determined
by such other method as the Committee determines in good faith to be reasonable and in compliance with Code Section 409A, if applicable.

 

(u)
“Immediate Family Members” shall have the meaning set forth in Section 15(b) of this Plan.

 

(v)
“Incentive Stock Option” means an Option that is designated by the Committee as an incentive stock option
as described in Section 422 of the Code and otherwise meets the requirements set forth in this Plan.

 

(w)
“Indemnifiable Person” shall have the meaning set forth in Section 4(e) of this Plan.

 

(x)
“Negative Discretion” shall mean the discretion authorized by this Plan to be applied by the Committee
to eliminate or reduce the size of a Performance Compensation Award consistent with Section 162(m) of the Code.

 

    	 	3	 

     

    

 

(y)
“Nonqualified Stock Option” means an Option that is not designated by the Committee as an Incentive
Stock Option.

 

(z)  
“Option” means an Award granted under Section 7 of this Plan.

 

(aa)
“Option Period” has the meaning given such term in Section 7(c) of this Plan.

 

(bb)
“Participant” means an Eligible Person who has been selected by the Committee to participate in
this Plan and to receive an Award pursuant to Section 6 of this Plan.

 

(cc)
“Performance Compensation Award” shall mean any Award designated by the Committee as a Performance
Compensation Award pursuant to Section 11 of this Plan.

 

(dd)
“Performance Criteria” shall mean the criterion or criteria that the Committee shall select for
purposes of establishing the Performance Goal(s) for a Performance Period with respect to any Performance Compensation Award
under this Plan.

 

(ee)
“Performance Formula” shall mean, for a Performance Period, the one or more objective formulae
applied against the relevant Performance Goal to determine, with regard to the Performance Compensation Award of a particular
Participant, whether all, some portion but less than all, or none of the Performance Compensation Award has been earned for
the Performance Period.

 

(ff)
“Performance Goals” shall mean, for a Performance Period, the one or more goals established by the
Committee for the Performance Period based upon the Performance Criteria.

 

(gg)
“Performance Period” shall mean the one or more periods of time, as the Committee may select, over
which the attainment of one or more Performance Goals will be measured for the purpose of determining a Participant’s
right to, and the payment of, a Performance Compensation Award.

 

(hh)
“Permitted Transferee” shall have the meaning set forth in Section 15(b) of this Plan.

 

(ii)  
“Person” has the meaning given such term in the definition of “Change in Control.”

 

(jj)  
“Plan” means this Purple Innovation, Inc. 2017 Equity Incentive Plan, as amended from time to time.

 

(kk)
“Retirement” means the fulfillment of each of the following conditions: (i) the Participant is in
good standing with the Company and/or an Affiliate of the Company as determined by the Committee; (ii) the voluntary
termination by a Participant of such Participant’s employment or service to the Company and/or an Affiliate and (iii)
that at the time of such voluntary termination, the sum of: (A) the Participant’s age (calculated to the nearest month,
with any resulting fraction of a year being calculated as the number of months in the year divided by 12) and (B) the
Participant’s years of employment or service with the Company (calculated to the nearest month, with any resulting
fraction of a year being calculated as the number of months in the year divided by 12) equals at least 62 (provided that, in
any case, the foregoing shall only be applicable if, at the time of such Retirement, the Participant shall be at least 55
years of age and shall have been employed by or served with the Company for no less than five years).

 

(ll)  
“Restricted Period” means the period of time determined by the Committee during which an Award is subject
to restrictions or, as applicable, the period of time within which performance is measured for purposes of determining whether
an Award has been earned.

 

(mm)
“Restricted Stock Unit” means an unfunded and unsecured promise to deliver Common Shares, cash,
other securities or other property, subject to certain restrictions (including, without limitation, a requirement that the
Participant remain continuously employed or provide continuous services for a specified period of time), granted under
Section 9 of this Plan.

 

(nn)
“Restricted Stock” means Common Shares, subject to certain specified restrictions (including,
without limitation, a requirement that the Participant remain continuously employed or provide continuous services for a
specified period of time), granted under Section 9 of this Plan.

 

    	 	4	 

     

    

 

(oo)
“SAR Period” has the meaning given such term in Section 8(c) of this Plan.

 

(pp)
“Securities Act” means the Securities Act of 1933, as amended, and any successor thereto.
Reference in this Plan to any section of the Securities Act shall be deemed to include any rules, regulations or other
official interpretative guidance issued by any governmental authority under such section, and any amendments or successor
provisions to such section, rules, regulations or guidance.

 

(qq)
“Stock Appreciation Right” or “SAR” means
an Award granted under Section 8 of this Plan which meets all of the requirements of Section 1.409A-1(b)(5)(i)(B) of the
Treasury Regulations.

 

(rr)
“Stock Bonus Award” means an Award granted under Section 10 of this Plan.

 

(ss)
“Strike Price” means, except as otherwise provided by the Committee in the case of Substitute
Awards, (i) in the case of a SAR granted in tandem with an Option, the Exercise Price of the related Option, or (ii) in the
case of a SAR granted independent of an Option, the Fair Market Value of Common Shares on the Date of Grant.

 

(tt)
“Subsidiary” means, with respect to any specified Person:

 

(i)   
any corporation, association or other business entity of which more than 50% of the total voting power of shares of voting securities
(without regard to the occurrence of any contingency and after giving effect to any voting agreement or stockholders’ agreement
that effectively transfers voting power) is at the time owned or controlled, directly or indirectly, by that Person or one or
more of the other Subsidiaries of that Person (or a combination thereof); and

 

(ii)  
any partnership or limited liability company (or any comparable foreign entity) (a) the sole general partner or managing member
(or functional equivalent thereof) or the managing general partner of which is such Person or Subsidiary of such Person or (b)
the only general partners or managing members (or functional equivalents thereof) of which are that Person or one or more Subsidiaries
of that Person (or any combination thereof).

 

(uu)
“Substitute Award” has the meaning given such term in Section 5(e).

 

(vv)
“Treasury Regulations” means any regulations, whether proposed, temporary or final, promulgated by the
U.S. Department of Treasury under the Code, and any successor provisions.

 

3.
Effective Date; Duration. The Plan shall be effective upon its approval by the stockholders of the Company, which date
shall be within twelve (12) months before or after the date of the closing of the Agreement and Plan of Merger by and among Global
Partner Acquisition Corp., PRPL Acquistion, LLC, Purple Innovation, LLC, Innohold, LLC and Global Partner Sponsor I LLC (as parent
representative). The expiration date of this Plan, on and after which date no Awards may be granted hereunder, shall be the tenth
anniversary of the date on which the Plan was approved by the stockholders of the Company; provided, however,
that such expiration shall not affect Awards then outstanding, and the terms and conditions of this Plan shall continue to apply
to such Awards.

 

4.
Administration.

 

(a)
The Committee shall administer this Plan. To the extent required to comply with the provisions of Rule 16b-3 promulgated under
the Exchange Act (if the Board is not acting as the Committee under this Plan) or necessary to obtain the exception for performance-based
compensation under Section 162(m) of the Code, as applicable, it is intended that each member of the Committee shall, at the time
he takes any action with respect to an Award under this Plan, be an Eligible Director. However, the fact that a Committee member
shall fail to qualify as an Eligible Director shall not invalidate any Award granted by the Committee that is otherwise validly
granted under this Plan. The acts of a majority of the members present at any meeting at which a quorum is present or acts approved
in writing by a majority of the Committee shall be deemed the acts of the Committee. Whether a quorum is present shall be determined
based on the Committee’s charter as approved by the Board.

 

    	 	5	 

     

    

 

(b)
Subject to the provisions of this Plan and applicable law, the Committee shall have the sole and plenary authority, in addition
to other express powers and authorizations conferred on the Committee by this Plan and its charter, to: (i) designate Participants;
(ii) determine the type or types of Awards to be granted to a Participant; (iii) determine the number of Common Shares to be covered
by, or with respect to which payments, rights, or other matters are to be calculated in connection with, Awards; (iv) determine
the terms and conditions of any Award; (v) determine whether, to what extent, and under what circumstances Awards may be settled
or exercised in cash, Common Shares, other securities, other Awards or other property, or canceled, forfeited, or suspended, and
the method or methods by which Awards may be settled, exercised, canceled, forfeited, or suspended; (vi) determine whether, to
what extent, and under what circumstances the delivery of cash, Common Shares, other securities, other Awards or other property
and other amounts payable with respect to an Award shall be made; (vii) interpret, administer, reconcile any inconsistency in,
settle any controversy regarding, correct any defect in and/or complete any omission in this Plan and any instrument or agreement
relating to, or Award granted under, this Plan; (viii) establish, amend, suspend, or waive any rules and regulations and appoint
such agents as the Committee shall deem appropriate for the proper administration of this Plan; (ix) accelerate the vesting or
exercisability of, payment for or lapse of restrictions on, Awards; (x) to reprice existing Awards or to grant Awards in connection
with or in consideration of the cancellation of an outstanding Award with a higher price; and (xi) make any other determination
and take any other action that the Committee deems necessary or desirable for the administration of this Plan.

 

(c)
The Committee may, by resolution, expressly delegate to a special committee, consisting of one or more directors who may but need
not be officers of the Company, the authority, within specified parameters as to the number and types of Awards, to (i) designate
officers and/or employees of the Company or any of its Affiliates to be recipients of Awards under this Plan, and (ii) to determine
the number of such Awards to be received by any such Participants; provided, however, that such delegation of duties and responsibilities
may not be made with respect to grants of Awards to persons (i) subject to Section 16 of the Exchange Act or (ii) who are, or
who are reasonably expected to be, “covered employees” for purposes of Section 162(m) of the Code. The acts of such
delegates shall be treated as acts of the Committee, and such delegates shall report regularly to the Board and the Committee
regarding the delegated duties and responsibilities and any Awards granted.

 

(d)
Unless otherwise expressly provided in this Plan, all designations, determinations, interpretations, and other decisions under
or with respect to this Plan or any Award or any documents evidencing Awards granted pursuant to this Plan shall be within the
sole discretion of the Committee, may be made at any time and shall be final, conclusive and binding upon all persons or entities,
including, without limitation, the Company, any Affiliate, any Participant, any holder or beneficiary of any Award, and any stockholder
of the Company.

 

(e)
No member of the Board, the Committee, delegate of the Committee or any employee, advisor or agent of the Company or the Board
or the Committee (each such person, an “Indemnifiable Person”) shall be liable for any action taken or omitted
to be taken or any determination made in good faith with respect to this Plan or any Award hereunder. Each Indemnifiable Person
shall be indemnified and held harmless by the Company against and from (and the Company shall pay or reimburse on demand for)
any loss, cost, liability, or expense (including court costs and attorneys’ fees) that may be imposed upon or incurred by
such Indemnifiable Person in connection with or resulting from any action, suit or proceeding to which such Indemnifiable Person
may be a party or in which such Indemnifiable Person may be involved by reason of any action taken or omitted to be taken under
this Plan or any Award Agreement and against and from any and all amounts paid by such Indemnifiable Person with the Company’s
approval, in settlement thereof, or paid by such Indemnifiable Person in satisfaction of any judgment in any such action, suit
or proceeding against such Indemnifiable Person, provided, that the Company shall have the right, at its own expense, to
assume and defend any such action, suit or proceeding and once the Company gives notice of its intent to assume the defense, the
Company shall have sole control over such defense with counsel of the Company’s choice. The foregoing right of indemnification
shall not be available to an Indemnifiable Person to the extent that a final judgment or other final adjudication (in either case
not subject to further appeal) binding upon such Indemnifiable Person determines that the acts or omissions of such Indemnifiable
Person giving rise to the indemnification claim resulted from such Indemnifiable Person’s bad faith, fraud or willful criminal
act or omission or that such right of indemnification is otherwise prohibited by law or by the Company’s Certificate of
Incorporation or Bylaws. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification
to which any such Indemnifiable Person may be entitled under the Company’s Certificate of Incorporation or Bylaws, as a
matter of law, or otherwise, or any other power that the Company may have to indemnify such Indemnifiable Persons or hold them
harmless.

 

    	 	6	 

     

    

 

(f)  
Notwithstanding anything to the contrary contained in this Plan, the Board may, in its sole discretion, at any time and from time
to time, grant Awards and administer this Plan with respect to such Awards. In any such case, the Board shall have all the authority
granted to the Committee under this Plan.

 

5.
Grant of Awards; Shares Subject to this Plan; Limitations.

 

(a)
The Committee may, from time to time, grant Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Stock
Bonus Awards and/or Performance Compensation Awards to one or more Eligible Persons. Subject to Section 12 of this Plan, the Committee
is authorized to deliver under this Plan an aggregate of 4,100,000 Common Shares. Notwithstanding the foregoing, directors of
the Company or an Affiliate who are not employees of the Company or an Affiliate may not be granted Awards denominated in Common
Shares that exceed in the aggregate 820,000 Common Shares; provided, that the foregoing limitation shall not apply to any Award
made pursuant to an election by a director to receive an Award in lieu of all or a portion of the annual and/or committee retainers
and annual meeting fee payable to such director.

 

(b)
Common Shares underlying Awards under this Plan that are forfeited, cancelled, expire unexercised, or are settled in cash shall
be available again for Awards under this Plan at the same ratio at which they were previously granted. Notwithstanding the foregoing,
the following Common Shares shall not be available again for Awards under the Plan: (i) shares tendered or held back upon the
exercise of an Option or settlement of an Award to cover the Exercise Price of an Award; (ii) shares that are used or withheld
to satisfy tax withholding obligations of the Participant; and (iii) shares subject to a Stock Appreciation Right that are not
issued in connection with the stock settlement of the SAR upon exercise thereof.

 

(c)
Awards that do not entitle the holder thereof to receive or purchase Common Shares shall not be counted against the aggregate
number of Common Shares available for Awards under the Plan.

 

(d)
Common Shares delivered by the Company in settlement of Awards may be authorized and unissued shares, shares held in the treasury
of the Company, shares purchased on the open market or by private purchase, or any combination of the foregoing.

 

(e)
Subject to compliance with Section 1.409A-3(f) of the Treasury Regulations, Awards may, in the sole discretion of the Committee,
be granted under this Plan in assumption of, or in substitution for, outstanding awards previously granted by an entity acquired
by the Company or with which the Company combines (“Substitute Awards”). The number of Common Shares underlying
any Substitute Awards shall be counted against the aggregate number of Common Shares available for Awards under this Plan; provided,
however that Common Shares issued under Substitute Awards granted in substitution for awards previously granted by an entity that
is acquired by or merged with the Company or an Affiliate shall not be counted against the aggregate number of Common Shares available
for Awards under the Plan.

 

(f)  
Notwithstanding any provision in the Plan to the contrary (but subject to adjustment as provided in Section 12), the Committee
shall not grant to any one Eligible Person in any one calendar year Awards (i) for more than 10% of the Available Shares in the
aggregate or (ii) payable in cash in an amount exceeding $5,000,000 in the aggregate.

 

6.
Eligibility. Participation shall be limited to Eligible Persons who have entered into an Award Agreement or who have received
written notification from the Committee, or from a person designated by the Committee, that they have been selected to participate
in this Plan.

 

    	 	7	 

     

    

 

7.
Options.

 

(a)
Generally. Each Option granted under this Plan shall be evidenced by an Award Agreement (whether in paper or electronic
medium (including email or the posting on a web site maintained by the Company or a third party under contract with the Company)).
Each Option so granted shall be subject to the conditions set forth in this Section 7, and to such other conditions not inconsistent
with this Plan as may be reflected in the applicable Award Agreement. All Options granted under this Plan shall be Nonqualified
Stock Options unless the applicable Award Agreement expressly states that the Option is intended to be an Incentive Stock Option.
Notwithstanding any designation of an Option, to the extent that the aggregate Fair Market Value of Common Shares with respect
to which Options designated as Incentive Stock Options are exercisable for the first time by any Participant during any calendar
year (under all plans of the Company or any Subsidiary) exceeds $100,000, such excess Options shall be treated as Nonqualified
Stock Options. Incentive Stock Options shall be granted only to Eligible Persons who are employees of the Company and its Affiliates,
and no Incentive Stock Option shall be granted to any Eligible Person who is ineligible to receive an Incentive Stock Option under
the Code. No Option shall be treated as an Incentive Stock Option unless this Plan has been approved by the stockholders of the
Company in a manner intended to comply with the stockholder approval requirements of Section 422(b)(1) of the Code, provided that
any Option intended to be an Incentive Stock Option shall not fail to be effective solely on account of a failure to obtain such
approval, but rather such Option shall be treated as a Nonqualified Stock Option unless and until such approval is obtained. In
the case of an Incentive Stock Option, the terms and conditions of such grant shall be subject to and comply with such rules as
may be prescribed by Section 422 of the Code. If for any reason an Option intended to be an Incentive Stock Option (or any portion
thereof) shall not qualify as an Incentive Stock Option, then, to the extent of such nonqualification, such Option or portion
thereof shall be regarded as a Nonqualified Stock Option appropriately granted under this Plan.

 

(b)
Exercise Price. The exercise price (“Exercise Price”) per Common Share for each Option shall
not be less than 100% of the Fair Market Value of such share determined as of the Date of Grant; provided, however, that
in the case of an Incentive Stock Option granted to an employee who, at the time of the grant of such Option, owns shares representing
more than 10% of the voting power of all classes of shares of the Company or any Affiliate, the Exercise Price per share shall
not be less than 110% of the Fair Market Value per share on the Date of Grant; and, provided further, that notwithstanding
any provision herein to the contrary, the Exercise Price shall not be less than the par value per Common Share.

 

(c)
Vesting and Expiration. Options shall vest and become exercisable in such manner and on such date or dates determined
by the Committee and as set forth in the applicable Award Agreement, and shall expire after such period, not to exceed ten (10)
years from the Date of Grant, as may be determined by the Committee (the “Option Period”); provided,
however, that the Option Period shall not exceed five (5) years from the Date of Grant in the case of an Incentive
Stock Option granted to a Participant who on the Date of Grant owns shares representing more than 10% of the voting power of all
classes of shares of the Company or any Affiliate; and, provided, further, that notwithstanding any
vesting dates set by the Committee, the Committee may, in its sole discretion, accelerate the exercisability of any Option, which
acceleration shall not affect the terms and conditions of such Option other than with respect to exercisability. Unless otherwise
provided by the Committee in an Award Agreement:

 

(i)
an Option shall vest and become exercisable with respect to one-third of the Common Shares subject to such Option on each of the
first three anniversaries of the Date of Grant; provided, however, that the Committee may designate a purchase price below
Fair Market Value on the date of grant if the Option is granted in substitution for a stock option previously granted by an entity
that is acquired by or merged with the Company or an Affiliate;

 

(ii)  
the unvested portion of an Option shall expire upon termination of employment or service of the Participant granted the Option,
and the vested portion of such Option shall remain exercisable for:

 

(A)
one year following termination of employment or service by reason of such Participant’s death or Disability (with the determination
of Disability to be made by the Committee on a case by case basis), but not later than the expiration of the Option Period;

 

(B)
for directors, officers and employees of the Company only, for ninety (90) days following termination of employment or service
by reason of such Participant’s Retirement;

 

(C)
90 calendar days following termination of employment or service for any reason other than such Participant’s death, Disability
or Retirement, and other than such Participant’s termination of employment or service for Cause, but not later than the
expiration of the Option Period; and

 

(iii)
both the unvested and the vested portion of an Option shall immediately expire upon the termination of the Participant’s
employment or service by the Company for Cause.

 

    	 	8	 

     

    

 

Notwithstanding
the foregoing provisions of Section 7(c) and consistent with the requirements of applicable law, the Committee, in its sole discretion,
may extend the post-termination of employment period during which a Participant may exercise vested Options.

 

(d)
Method of Exercise and Form of Payment. No Common Shares shall be delivered pursuant to the exercise of an Option
until payment in full of the Exercise Price therefor is received by the Company and the Participant has paid to the Company an
amount equal to any applicable federal, state, local and/or foreign income and employment taxes withheld. Options that have become
exercisable may be exercised by delivery of written or electronic notice of exercise to the Company in accordance with the terms
of the Award Agreement accompanied by payment of the Exercise Price. The Exercise Price shall be payable (i) in cash, check (subject
to collection), cash equivalent and/or vested Common Shares valued at the Fair Market Value at the time the Option is exercised
(including, pursuant to procedures approved by the Committee, by means of attestation of ownership of a sufficient number of Common
Shares in lieu of actual delivery of such shares to the Company); provided, however, that such Common Shares are
not subject to any pledge or other security interest and; (ii) by such other method as the Committee may permit in accordance
with applicable law, in its sole discretion, including without limitation: (A) in other property having a fair market value (as
determined by the Committee in its discretion) on the date of exercise equal to the Exercise Price or (B) if there is a public
market for the Common Shares at such time, by means of a broker-assisted “cashless exercise” pursuant to which the
Company is delivered a copy of irrevocable instructions to a stockbroker to sell the Common Shares otherwise deliverable upon
the exercise of the Option and to deliver promptly to the Company an amount equal to the Exercise Price or (C) by a “net
exercise” method whereby the Company withholds from the delivery of the Common Shares for which the Option was exercised
that number of Common Shares having a Fair Market Value equal to the aggregate Exercise Price for the Common Shares for which
the Option was exercised. Any fractional Common Shares shall be settled in cash.

 

(e)
Notification upon Disqualifying Disposition of an Incentive Stock Option. Each Participant awarded an Incentive
Stock Option under this Plan shall notify the Company in writing immediately after the date he makes a disqualifying disposition
of any Common Shares acquired pursuant to the exercise of such Incentive Stock Option. A disqualifying disposition is any disposition
(including, without limitation, any sale) of such Common Shares before the later of (A) two years after the Date of Grant of the
Incentive Stock Option or (B) one year after the date of exercise of the Incentive Stock Option. The Company may, if determined
by the Committee and in accordance with procedures established by the Committee, retain possession of any Common Shares acquired
pursuant to the exercise of an Incentive Stock Option as agent for the applicable Participant until the end of the period described
in the preceding sentence.

 

(f)  
Compliance with Laws, etc. Notwithstanding the foregoing, in no event shall a Participant be permitted to exercise
an Option in a manner that the Committee determines would violate the Sarbanes-Oxley Act of 2002, if applicable, or any other
applicable law or the applicable rules and regulations of the Securities and Exchange Commission or the applicable rules and regulations
of any securities exchange or inter-dealer quotation system on which the securities of the Company are listed or traded.

 

8.
Stock Appreciation Rights.

 

(a)
Generally. Each SAR granted under this Plan shall be evidenced by an Award Agreement (whether in paper or electronic medium
(including email or the posting on a web site maintained by the Company or a third party under contract with the Company)). Each
SAR so granted shall be subject to the conditions set forth in this Section 8, and to such other conditions not inconsistent with
this Plan as may be reflected in the applicable Award Agreement. Any Option granted under this Plan may include tandem SARs (i.e.,
SARs granted in conjunction with an Award of Options under this Plan). The Committee also may award SARs to Eligible Persons independent
of any Option.

 

(b)
Exercise Price. The Exercise Price per Common Share for each Option granted in connection with a SAR shall not be
less than 100% of the Fair Market Value of such share determined as of the Date of Grant; provided, however, that the Committee
may designate a purchase price below Fair Market Value on the date of grant if the SAR is granted in substitution for an appreciation
right previously granted by an entity that is acquired by or merged with the Company or an Affiliate.

 

    	 	9	 

     

    

 

(c)
Vesting and Expiration. A SAR granted in connection with an Option shall become exercisable and shall expire according
to the same vesting schedule and expiration provisions as the corresponding Option. A SAR granted independent of an Option shall
vest and become exercisable and shall expire in such manner and on such date or dates determined by the Committee and shall expire
after such period, not to exceed ten years, as may be determined by the Committee (the “SAR Period”);
provided, however, that notwithstanding any vesting dates set by the Committee, the Committee may, in its sole discretion,
accelerate the exercisability of any SAR, which acceleration shall not affect the terms and conditions of such SAR other than
with respect to exercisability. Unless otherwise provided by the Committee in an Award Agreement:

 

(i)
a SAR shall vest and become exercisable with respect to one-third of the Common Shares subject to such SAR on each of the first
three anniversaries of the Date of Grant;

 

(ii)
the unvested portion of a SAR shall expire upon termination of employment or service of the Participant granted the SAR, and
the vested portion of such SAR shall remain exercisable for:

 

(A)
one year following termination of employment or service by reason of such Participant’s death or Disability (with the determination
of Disability to be made by the Committee on a case by case basis), but not later than the expiration of the SAR Period;

 

(B)
for directors, officers and employees of the Company only, for the remainder of the SAR Period following termination of employment
or service by reason of such Participant’s Retirement;

 

(C)
90 calendar days following termination of employment or service for any reason other than such Participant’s death, Disability
or Retirement, and other than such Participant’s termination of employment or service for Cause, but not later than the
expiration of the SAR Period; and

 

(iii)
both the unvested and the vested portion of a SAR shall expire immediately upon the termination of the Participant’s employment
or service by the Company for Cause.

 

(d)
Method of Exercise. SARs that have become exercisable may be exercised by delivery of written or electronic notice
of exercise to the Company in accordance with the terms of the Award, specifying the number of SARs to be exercised and the date
on which such SARs were awarded. Notwithstanding the foregoing, if on the last day of the Option Period (or in the case of a SAR
independent of an Option, the SAR Period), the Fair Market Value exceeds the Strike Price, the Participant has not exercised the
SAR or the corresponding Option (if applicable), and neither the SAR nor the corresponding Option (if applicable) has expired,
such SAR shall be deemed to have been exercised by the Participant on such last day and the Company shall make the appropriate
payment therefor.

 

(e)
Payment. Upon the exercise of a SAR, the Company shall pay to the Participant an amount equal to the number of Common
Shares subject to the SAR that are being exercised multiplied by the excess, if any, of the Fair Market Value of one Common Share
on the exercise date over the Strike Price, less an amount equal to any applicable federal, state, local and non-U.S. income and
employment taxes withheld. The Company shall pay such amount in cash, in Common Shares valued at Fair Market Value, or any combination
thereof, as determined by the Committee. Any fractional Common Share shall be settled in cash.

 

9.
Restricted Stock and Restricted Stock Units.

 

(a)
Generally. Each grant of Restricted Stock and Restricted Stock Units shall be evidenced by an Award Agreement (whether
in paper or electronic medium (including email or the posting on a web site maintained by the Company or a third party under contract
with the Company)). Each such grant shall be subject to the conditions set forth in this Section 9, and to such other conditions
not inconsistent with this Plan as may be reflected in the applicable Award Agreement. Restricted Stock and Restricted Stock Units
shall be subject to such restrictions on transferability and other restrictions as the Committee may impose (including, for example,
limitations on the right to vote Restricted Stock or the right to receive dividends on the Restricted Stock). These restrictions
may lapse separately or in combination at such times, under such circumstances, in such installments, upon the satisfaction of
Performance Goals or otherwise, as the Committee determines at the time of the grant of an Award or thereafter. Except as otherwise
provided in an Award Agreement, a Participant shall have none of the rights of a stockholder with respect to Restricted Stock
Units until such time as Common Shares are paid in settlement of such Awards.

 

    	 	10	 

     

    

 

(b)
Restricted Accounts; Escrow or Similar Arrangement. Unless otherwise determined by the Committee, upon the grant
of Restricted Stock, a book entry in a restricted account shall be established in the Participant’s name at the Company’s
transfer agent and, if the Committee determines that the Restricted Stock shall be held by the Company or in escrow rather than
held in such restricted account pending the release of the applicable restrictions, the Committee may require the Participant
to additionally execute and deliver to the Company (i) an escrow agreement satisfactory to the Committee, if applicable, and (ii)
the appropriate share power (endorsed in blank) with respect to the Restricted Stock covered by such agreement. If a Participant
shall fail to execute an agreement evidencing an Award of Restricted Stock and, if applicable, an escrow agreement and blank share
power within the amount of time specified by the Committee, the Award shall be null and void ab initio. Subject to the
restrictions set forth in this Section 9 and the applicable Award Agreement, the Participant generally shall have the rights and
privileges of a stockholder as to such Restricted Stock, including without limitation the right to vote such Restricted Stock
and the right to receive dividends, if applicable. To the extent shares of Restricted Stock are forfeited, any share certificates
issued to the Participant evidencing such shares shall be returned to the Company, and all rights of the Participant to such shares
and as a stockholder with respect thereto shall terminate without further obligation on the part of the Company.

 

(c)
Vesting; Acceleration of Lapse of Restrictions. Unless otherwise provided by the Committee in an Award Agreement:
(i) the Restricted Period shall lapse with respect to one-third of the Restricted Stock and Restricted Stock Units on each of
the first three anniversaries of the Date of Grant; and (ii) the unvested portion of Restricted Stock and Restricted Stock Units
shall terminate and be forfeited upon the termination of employment or service of the Participant granted the applicable Award.

 

(d)
Delivery of Restricted Stock and Settlement of Restricted Stock Units. (i) Upon the expiration of the Restricted
Period with respect to any shares of Restricted Stock, the restrictions set forth in the applicable Award Agreement shall be of
no further force or effect with respect to such shares, except as set forth in the applicable Award Agreement. If an escrow arrangement
is used, upon such expiration, the Company shall deliver to the Participant, or his beneficiary, without charge, the share certificate
evidencing the shares of Restricted Stock that have not then been forfeited and with respect to which the Restricted Period has
expired (rounded down to the nearest full share). Dividends, if any, that may have been withheld by the Committee and attributable
to any particular share of Restricted Stock shall be distributed to the Participant in cash or, at the sole discretion of the
Committee, in shares of Common Stock having a Fair Market Value equal to the amount of such dividends, upon the release of restrictions
on such shares of Restricted Stock and, if such shares of Restricted Stock are forfeited, the Participant shall have no right
to such dividends (except as otherwise set forth by the Committee in the applicable Award Agreement).

 

(ii)  
Unless otherwise provided by the Committee in an Award Agreement, upon the expiration of the Restricted Period with respect to
any outstanding Restricted Stock Units and no later than the 75th day of the calendar year following the calendar year
in which such expiration occurs, the Company shall deliver to the Participant, or his beneficiary, without charge, one Common
Share for each such outstanding Restricted Stock Unit; provided, however, that the Committee may, in its sole
discretion and subject to the requirements of Section 409A of the Code, elect to (i) pay cash or part cash and part Common Share
in lieu of delivering only Common Shares in respect of such Restricted Stock Units or (ii) defer the delivery of Common Shares
(or cash or part Common Shares and part cash, as the case may be) beyond the 75th day of the calendar year following
the calendar year in which the expiration of the Restricted Period occurs if such delivery would result in a violation of applicable
law until such time as is no longer the case. If a cash payment is made in lieu of delivering Common Shares, the amount of such
payment shall be equal to the Fair Market Value of the Common Shares as of the date on which the Restricted Period lapsed with
respect to such Restricted Stock Units, less an amount equal to any applicable federal, state, local and non-U.S. income and employment
taxes withheld. Notwithstanding anything contained herein to the contrary, the Committee in an Award Agreement may, in a manner
consistent with the applicable requirements of Section 409A of the Code, enable a Participant to elect to defer the date on which
settlement of the Restricted Stock Units shall occur.

 

    	 	11	 

     

    

 

10.
Stock Bonus Awards. The Committee may issue unrestricted Common Shares, or other Awards denominated in Common Shares, under
this Plan to Eligible Persons, either alone or in tandem with other awards, in such amounts as the Committee shall from time to
time in its sole discretion determine. Each Stock Bonus Award granted under this Plan shall be evidenced by an Award Agreement
(whether in paper or electronic medium (including email or the posting on a web site maintained by the Company or a third party
under contract with the Company)). Each Stock Bonus Award so granted shall be subject to such conditions not inconsistent with
this Plan as may be reflected in the applicable Award Agreement.

 

11.
Performance Compensation Awards.

 

(a)
Generally. The provisions of the Plan are intended to enable Options and Stock Appreciation Rights granted hereunder to
certain Eligible Persons to qualify for an exemption under Section 162(m) of the Code. The Committee shall have the authority,
at the time of grant of any Award described in Sections 7 through 10 of this Plan, to designate such Award as a Performance Compensation
Award intended to qualify as “performance-based compensation” under Section 162(m) of the Code. The Committee shall
have the authority to make an award of a cash bonus to any Participant and designate such Award as a Performance Compensation
Award intended to qualify as “performance-based compensation” under Section 162(m) of the Code.

 

(b)
Discretion of Committee with Respect to Performance Compensation Awards. With regard to a particular Performance
Period, the Committee shall have sole discretion to select the length of such Performance Period, the type(s) of Performance Compensation
Awards to be issued, the Performance Criteria that will be used to establish the Performance Goal(s), the kind(s) and/or level(s)
of the Performance Goals(s) that is (are) to apply and the Performance Formula. Within the first 90 calendar days of a Performance
Period (or, if longer or shorter, within the maximum period allowed under Section 162(m) of the Code, if applicable), the Committee
shall, with regard to the Performance Compensation Awards to be issued for such Performance Period, exercise its discretion with
respect to each of the matters enumerated in the immediately preceding sentence and record the same in writing.

 

(c)
Performance Criteria. The Performance Criteria that will be used to establish the Performance Goal(s) shall be based
on the attainment of specific levels of performance of the Company and/or one or more Affiliates, divisions or operational units,
or any combination of the foregoing, as determined by the Committee, which criteria may be based on one or more of the following
business criteria: (i) revenue; (ii) sales; (iii) profit (net profit, gross profit, operating profit, economic profit, profit
margins or other corporate profit measures); (iv) earnings (EBIT, EBITDA, earnings per share, or other corporate earnings measures);
(v) net income (before or after taxes, operating income or other income measures); (vi) cash (cash flow, cash generation or other
cash measures); (vii) stock price or performance; (viii) total stockholder return (stock price appreciation plus reinvested dividends
divided by beginning share price); (ix) economic value added; (x) return measures (including, but not limited to, return on assets,
capital, equity, investments or sales, and cash flow return on assets, capital, equity, or sales); (xi) market share; (xii) improvements
in capital structure; (xiii) expenses (expense management, expense ratio, expense efficiency ratios or other expense measures);
(xiv) business expansion or consolidation (acquisitions and divestitures); (xv) internal rate of return or increase in net present
value; (xvi) working capital targets relating to inventory and/or accounts receivable; (xvii) inventory management; (xviii) service
or product delivery or quality; (xix) customer satisfaction; (xx) employee retention; (xxi) safety standards; (xxii) productivity
measures; (xxiii) cost reduction measures; and/or (xxiv) strategic plan development and implementation. Any one or more of the
Performance Criteria adopted by the Committee may be used on an absolute or relative basis to measure the performance of the Company
and/or one or more Affiliates as a whole or any business unit(s) of the Company and/or one or more Affiliates or any combination
thereof, as the Committee may deem appropriate, or any of the above Performance Criteria may be compared to the performance of
a selected group of comparison companies, or a published or special index that the Committee, in its sole discretion, deems appropriate,
or as compared to various stock market indices. The Committee also has the authority to provide for accelerated vesting of any
Award based on the achievement of Performance Goals pursuant to the Performance Criteria specified in this paragraph. To the extent
required under Section 162(m) of the Code, the Committee shall, within the first 90 calendar days of a Performance Period (or,
if longer or shorter, within the maximum period allowed under Section 162(m) of the Code), define in an objective fashion the
manner of calculating the Performance Criteria it selects to use for such Performance Period and thereafter promptly communicate
such Performance Criteria to the Participant.

 

    	 	12	 

     

    

 

(d)
Modification of Performance Goal(s). In the event that applicable tax and/or securities laws change to permit Committee
discretion to alter the governing Performance Criteria without obtaining stockholder approval of such alterations, the Committee
shall have sole discretion to make such alterations without obtaining stockholder approval. For purposes of clarity and without
limiting the Committee’s authority set forth above, at the time it establishes Performance Criteria to be used with any
Performance Compensation Award, the Committee may specify one or more events requiring an adjustment to the calculation of the
Performance Goal, including but not limited to: (i) asset write-downs; (ii) litigation or claim judgments or settlements; (iii)
the effect of changes in tax laws, accounting principles, or other laws or regulatory rules affecting reported results; (iv) any
reorganization and restructuring programs; (v) acquisitions or divestitures; (vi) any other specific items that are unusual in
nature or infrequently occurring, or objectively determinable category thereof; (viii) foreign exchange gains and losses; and
(ix) a change in the Company’s fiscal year. The Committee may reserve discretion to make or not make one or more adjustments
as specified in a Performance Compensation Award, but only to the extent that such discretion is Negative Discretion.

 

(e)
Payment of Performance Compensation Awards.

 

(i)
Condition to Receipt of Payment. Unless otherwise provided in the applicable Award Agreement, a Participant must be employed
by, or in service to, the Company on the last day of a Performance Period to be eligible for payment in respect of a Performance
Compensation Award for such Performance Period.

 

(ii)  
Limitation. A Participant shall be eligible to receive payment in respect of a Performance Compensation Award only
to the extent that: (A) the Performance Goals for such period are achieved; and (B) all or some of the portion of such Participant’s
Performance Compensation Award has been earned for the Performance Period based on the application of the Performance Formula
to such achieved Performance Goals.

 

(iii)
Certification. Following the completion of a Performance Period, the Committee shall review and certify in writing
whether, and to what extent, the Performance Goals for the Performance Period have been achieved and, if so, calculate and certify
in writing that amount of the Performance Compensation Awards earned for the period based upon the Performance Formula. The Committee
shall then determine the amount of each Participant’s Performance Compensation Award actually payable for the Performance
Period and, in so doing, may apply Negative Discretion.

 

(iv) Use
of Negative Discretion. In determining the actual amount of an individual Participant’s Performance
Compensation Award for a Performance Period, the Committee may reduce or eliminate the amount of the Performance Compensation
Award earned under the Performance Formula in the Performance Period through the use of Negative Discretion if, in its sole
judgment, such reduction or elimination is appropriate. The Committee shall not have the discretion, except as is otherwise
provided in this Plan, to (A) grant or provide payment in respect of Performance Compensation Awards for a Performance Period
if the Performance Goals for such Performance Period have not been attained; or (B) increase a Performance Compensation Award
above the applicable limitations set forth in Section 5 of this Plan.

 

(f)  
Timing of Award Payments. Performance Compensation Awards granted for a Performance Period shall be paid to Participants
as soon as administratively practicable following completion of the certifications required by this Section 11, but in no event
later than two-and-one-half months following the end of the fiscal year during which the Performance Period is completed in order
to comply with the short-term deferral rules under Section 1.409A-1(b)(4) of the Treasury Regulations. Notwithstanding the foregoing,
payment of a Performance Compensation Award may be delayed, as permitted by Section 1.409A-2(b)(7)(i) of the Treasury Regulations,
to the extent that the Company reasonably anticipates that if such payment were made as scheduled, the Company’s tax deduction
with respect to such payment would not be permitted due to the application of Section 162(m) of the Code.

 

    	 	13	 

     

    

 

12. Changes
in Capital Structure and Similar Events. In the event of (a) any dividend or other distribution (whether in the form of
cash, Common Shares, other securities or other property), recapitalization, stock split, reverse stock split,
reorganization, merger, amalgamation, consolidation, split-up, split-off, combination, repurchase or exchange of Common
Shares or other securities of the Company, issuance of warrants or other rights to acquire Common Shares or other securities
of the Company, or other similar corporate transaction or event (including, without limitation, a Change in Control) that
affects the Common Shares, or (b) unusual or nonrecurring events (including, without limitation, a Change in Control)
affecting the Company, any Affiliate, or the financial statements of the Company or any Affiliate, or changes in applicable
rules, rulings, regulations or other requirements of any governmental body or securities exchange or inter-dealer quotation
system, accounting principles or law, such that in either case an adjustment is determined by the Committee in its sole
discretion to be necessary or appropriate in order to prevent dilution or enlargement of rights, then the Committee shall
make any such adjustments that are equitable, including without limitation any or all of the following:

 

(i)
adjusting any or all of (A) the number of Common Shares or other securities of the Company (or number and kind of other securities
or other property) that may be delivered in respect of Awards or with respect to which Awards may be granted under this Plan (including,
without limitation, adjusting any or all of the limitations under Section 5 of this Plan) and (B) the terms of any outstanding
Award, including, without limitation, (1) the number of Common Shares or other securities of the Company (or number and kind of
other securities or other property) subject to outstanding Awards or to which outstanding Awards relate, (2) the Exercise Price
or Strike Price with respect to any Award or (3) any applicable performance measures (including, without limitation, Performance
Criteria and Performance Goals);

 

(ii)  
subject to the requirements of Section 409A of the Code, providing for a substitution or assumption of Awards, accelerating the
exercisability of, lapse of restrictions on, or termination of, Awards or providing for a period of time for exercise prior to
the occurrence of such event; and

 

(iii)
subject to the requirements of Section 409A of the Code, canceling any one or more outstanding Awards and causing to be paid to
the holders thereof, in cash, Common Shares, other securities or other property, or any combination thereof, the value of such
Awards, if any, as determined by the Committee (which if applicable may be based upon the price per Common Share received or to
be received by other stockholders of the Company in such event), including without limitation, in the case of an outstanding Option
or SAR, a cash payment in an amount equal to the excess, if any, of the Fair Market Value (as of a date specified by the Committee)
of the Common Shares subject to such Option or SAR over the aggregate Exercise Price or Strike Price of such Option or SAR, respectively
(it being understood that, in such event, any Option or SAR having a per share Exercise Price or Strike Price equal to, or in
excess of, the Fair Market Value of a Common Share subject thereto may be canceled and terminated without any payment or consideration
therefor); provided, however, that in the case of any “equity restructuring” (within the meaning
of the Financial Accounting Standards Board Statement of Financial Accounting Standards No. 123 (revised 2004) or ASC Topic 718,
or any successor thereto), the Committee shall make an equitable or proportionate adjustment to outstanding Awards to reflect
such equity restructuring. Any adjustment in Incentive Stock Options under this Section 12 (other than any cancellation of Incentive
Stock Options) shall be made only to the extent not constituting a “modification” within the meaning of Section 424(h)(3)
of the Code, and any adjustments under this Section 12 shall be made in a manner that does not adversely affect the exemption
provided pursuant to Rule 16b-3 under the Exchange Act. The Company shall give each Participant notice of an adjustment hereunder
and, upon notice, such adjustment shall be conclusive and binding for all purposes.

 

13.
Effect of Change in Control. Except to the extent otherwise provided in an Award Agreement, in the event of a Change in
Control, notwithstanding any provision of this Plan to the contrary, with respect to all or any portion of a particular
outstanding Award or Awards:

 

(a)
all of the then outstanding Options and SARs shall immediately vest and become immediately exercisable as of a time prior to the
Change in Control;

 

(b)
the Restricted Period shall expire as of a time prior to the Change in Control (including without limitation a waiver of any applicable
Performance Goals);

 

(c)
Performance Periods in effect on the date the Change in Control occurs shall end on such date, and the Committee shall (i) determine
the extent to which Performance Goals with respect to each such Performance Period have been met based upon such audited or unaudited
financial information or other information then available as it deems relevant and (ii) cause the Participant to receive partial
or full payment of Awards for each such Performance Period based upon the Committee’s determination of the degree of attainment
of the Performance Goals, or assuming that the applicable “target” levels of performance have been attained or on
such other basis determined by the Committee.

 

    	 	14	 

     

    

 

To
the extent practicable, any actions taken by the Committee under the immediately preceding clauses (a) through (c) shall occur
in a manner and at a time which allows affected Participants the ability to participate in the Change in Control transactions
with respect to the Common Shares subject to their Awards.

 

14.
Amendments and Termination.

 

(a) Amendment
and Termination of this Plan. The Board may amend, alter, suspend, discontinue, or terminate this Plan or any portion
thereof at any time; provided, that (i) no amendment to the definition of Eligible Person in Section 2(q), Section
5(b), Section 11(c) or Section 14(b) (to the extent required by the proviso in such Section 14(b)) shall be made without
stockholder approval and (ii) no such amendment, alteration, suspension, discontinuation or termination shall be made without
stockholder approval if such approval is necessary to comply with any tax or regulatory requirement applicable to this Plan
(including, without limitation, as necessary to comply with any rules or requirements of any national securities exchange or
inter-dealer quotation system on which the Common Shares may be listed or quoted or to prevent the Company from being denied
a tax deduction under Section 162(m) of the Code); and, provided, further, that any such
amendment, alteration, suspension, discontinuance or termination that would materially and adversely affect the rights of any
Participant or any holder or beneficiary of any Award theretofore granted shall not to that extent be effective without the
prior written consent of the affected Participant, holder or beneficiary.

 

(b)
Amendment of Award Agreements. The Committee may, to the extent consistent with the terms of any applicable Award
Agreement, waive any conditions or rights under, amend any terms of, or alter, suspend, discontinue, cancel or terminate, any
Award theretofore granted or the associated Award Agreement, prospectively or retroactively; provided, however, that any
such waiver, amendment, alteration, suspension, discontinuance, cancellation or termination that would materially and adversely
affect the rights of any Participant with respect to any Award theretofore granted shall not to that extent be effective without
the consent of the affected Participant.

 

15.
General.

 

(a) Award
Agreements. Each Award under this Plan shall be evidenced by an Award Agreement, which shall be delivered to the
Participant (whether in paper or electronic medium (including email or the posting on a web site maintained by the Company or
a third party under contract with the Company)) and shall specify the terms and conditions of the Award and any rules
applicable thereto, including without limitation, the effect on such Award of the death, Disability or termination
of employment or service of a Participant, or of such other events as may be determined by the Committee. The Company’s
failure to specify any term of any Award in any particular Award Agreement shall not invalidate such term, provided such
terms was duly adopted by the Board or the Committee.

 

(b)
Nontransferability; Trading Restrictions.

 

(i)
Each Award shall be exercisable only by a Participant during the Participant’s lifetime, or, if permissible under applicable
law, by the Participant’s legal guardian or representative. No Award may be assigned, alienated, pledged, attached, sold
or otherwise transferred or encumbered by a Participant other than by will or by the laws of descent and distribution and any
such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against
the Company or an Affiliate; provided that the designation of a beneficiary shall not constitute an assignment, alienation, pledge,
attachment, sale, transfer or encumbrance.

 

(ii)  
Notwithstanding the foregoing, the Committee may, in its sole discretion, permit Awards (other than Incentive Stock Options) to
be transferred by a Participant, with or without consideration, subject to such rules as the Committee may adopt consistent with
any applicable Award Agreement to preserve the purposes of this Plan, to: (A) any person who is a “family member”
of the Participant, as such term is used in the instructions to Form S-8 under the Securities Act (collectively, the “Immediate
Family Members”); (B) a trust solely for the benefit of the Participant and his or her Immediate Family Members; or
(C) a partnership or limited liability company whose only partners or stockholders are the Participant and his or her Immediate
Family Members; or (D) any other transferee as may be approved either (I) by the Board or the Committee in its sole discretion,
or (II) as provided in the applicable Award Agreement (each transferee described in clauses (A), (B), (C) and (D) above is hereinafter
referred to as a “Permitted Transferee”); provided, that the Participant gives the Committee advance
written notice describing the terms and conditions of the proposed transfer and the Committee notifies the Participant in writing
that such a transfer would comply with the requirements of this Plan.

 

    	 	15	 

     

    

 

(iii)
The terms of any Award transferred in accordance with subparagraph (ii) above shall apply to the Permitted Transferee and any
reference in this Plan, or in any applicable Award Agreement, to a Participant shall be deemed to refer to the Permitted Transferee,
except that (A) Permitted Transferees shall not be entitled to transfer any Award, other than by will or the laws of descent and
distribution; (B) Permitted Transferees shall not be entitled to exercise any transferred Option unless there shall be in effect
a registration statement on an appropriate form covering the Common Shares to be acquired pursuant to the exercise of such Option
if the Committee determines, consistent with any applicable Award Agreement, that such a registration statement is necessary or
appropriate; (C) the Committee or the Company shall not be required to provide any notice to a Permitted Transferee, whether or
not such notice is or would otherwise have been required to be given to the Participant under this Plan or otherwise; and (D)
the consequences of the termination of the Participant’s employment by, or services to, the Company or an Affiliate under
the terms of this Plan and the applicable Award Agreement shall continue to be applied with respect to the Participant, including,
without limitation, that an Option shall be exercisable by the Permitted Transferee only to the extent, and for the periods, specified
in this Plan and the applicable Award Agreement.

 

(iv)
The Committee shall have the right, either on an Award-by-Award basis or as a matter of policy for all Awards or one or more classes
of Awards, to condition the delivery of vested Common Shares received in connection with such Award on the Participant’s
agreement to such restrictions as the Committee may determine.

 

(c)
Tax Withholding.

 

(i)
A Participant shall be required to pay to the Company or any Affiliate, or the Company or any Affiliate shall have the right and
is hereby authorized to withhold, from any cash, Common Shares, other securities or other property deliverable under any Award
or from any compensation or other amounts owing to a Participant, the amount (in cash, Common Shares, other securities or other
property) of any required withholding taxes in respect of an Award, its exercise, or any payment or transfer under an Award or
under this Plan and to take such other action as may be necessary in the opinion of the Committee or the Company to satisfy all
obligations for the payment of such withholding and taxes. In addition, the Committee, in its discretion, may make arrangements
mutually agreeable with a Participant who is not an employee of the Company or an Affiliate to facilitate the payment of applicable
income and self-employment taxes.

 

(ii)  
Without limiting the generality of clause (i) above, the Committee may, in its sole discretion, permit a Participant to satisfy,
in whole or in part, the foregoing withholding liability by (A) the delivery of Common Shares (which are not subject to any pledge
or other security interest) owned by the Participant having a fair market value equal to such withholding liability or (B) having
the Company withhold from the number of Common Shares otherwise issuable or deliverable pursuant to the exercise or settlement
of the Award a number of shares with a fair market value equal to such withholding liability (but no more than the maximum individual
statutory rate for the applicable tax jurisdiction).

 

(d)
No Claim to Awards; No Rights to Continued Employment; Waiver. No employee of the Company or an Affiliate, or other
person, shall have any claim or right to be granted an Award under this Plan or, having been selected for the grant of an Award,
to be selected for a grant of any other Award. There is no obligation for uniformity of treatment of Participants or holders or
beneficiaries of Awards. The terms and conditions of Awards and the Committee’s determinations and interpretations with
respect thereto need not be the same with respect to each Participant and may be made selectively among Participants, whether
or not such Participants are similarly situated. Neither this 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 an Affiliate, nor shall it be construed as
giving any Participant any rights to continued service on the Board. The Company or any of its Affiliates may at any time dismiss
a Participant from employment or discontinue any consulting relationship, free from any liability or any claim under this Plan,
unless otherwise expressly provided in this Plan or any Award Agreement. By accepting an Award under this Plan, a Participant
shall thereby be deemed to have waived any claim to continued exercise or vesting of an Award or to damages or severance entitlement
related to non-continuation of the Award beyond the period provided under this Plan or any Award Agreement, notwithstanding any
provision to the contrary in any written employment contract or other agreement between the Company and its Affiliates and the
Participant, whether any such agreement is executed before, on or after the Date of Grant.

 

(e)
International Participants. With respect to Participants who reside or work outside of the United States of America
and who are not (and who are not expected to be) “covered employees” within the meaning of Section 162(m) of the Code,
the Committee may in its sole discretion amend the terms of this Plan or outstanding Awards (or establish a sub-plan) with respect
to such Participants in order to conform such terms with the requirements of local law or to obtain more favorable tax or other
treatment for such Participants, the Company or its Affiliates.

 

    	 	16	 

     

    

 

(f)  
Designation and Change of Beneficiary. Unless otherwise provided by the Committee in an Award Agreement, each Participant
may file with the Committee a written designation of one or more persons as the beneficiary(ies) who shall be entitled to receive
the amounts payable with respect to an Award, if any, due under this Plan upon his or her death. A Participant may, from time
to time, revoke or change his or her beneficiary designation without the consent of any prior beneficiary by filing a new designation
with the Committee. The last such designation filed with the Committee shall be controlling; provided, however,
that no designation, or change or revocation thereof, shall be effective unless received by the Committee prior to the Participant’s
death, and in no event shall it be effective as of a date prior to such receipt. If no beneficiary designation is filed by a Participant,
the beneficiary shall be deemed to be his or her spouse or, if the Participant is unmarried at the time of death, his or her estate.
Upon the occurrence of a Participant’s divorce (as evidenced by a final order or decree of divorce), any spousal designation
previously given by such Participant shall automatically terminate.

 

(g)
Termination of Employment/Service. Unless determined otherwise by the Committee at any point following such event:
(i) neither a temporary absence from employment or service due to illness, vacation or leave of absence nor a transfer from employment
or service with the Company to employment or service with an Affiliate (or vice-versa) shall be considered a termination of employment
or service with the Company or an Affiliate; and (ii) if a Participant’s employment with the Company and its Affiliates
terminates, but such Participant continues to provide services to the Company and its Affiliates in a non-employee capacity (or
vice-versa), such change in status shall not be considered a termination of employment with the Company or an Affiliate for purposes
of this Plan unless the Committee, in its discretion, determines otherwise.

 

(h)
No Rights as a Stockholder. Except as otherwise specifically provided in this Plan or any Award Agreement, no person
shall be entitled to the privileges of ownership in respect of Common Shares that are subject to Awards hereunder until such shares
have been issued or delivered to that person.

 

(i)
Government and Other Regulations.

 

(i)
The obligation of the Company to settle Awards in Common Shares or other consideration shall be subject to all applicable laws,
rules, and regulations, and to such approvals by governmental agencies as may be required. Notwithstanding any terms or conditions
of any Award to the contrary, the Company shall be under no obligation to offer to sell or to sell, and shall be prohibited from
offering to sell or selling, any Common Shares pursuant to an Award unless such shares have been properly registered for sale
pursuant to the Securities Act with the Securities and Exchange Commission or unless the Company has received an opinion of counsel,
satisfactory to the Company, that such shares may be offered or sold without such registration pursuant to an available exemption
therefrom and the terms and conditions of such exemption have been fully complied with. The Company shall be under no obligation
to register for sale under the Securities Act any of the Common Shares to be offered or sold under this Plan. The Committee shall
have the authority to provide that all certificates for Common Shares or other securities of the Company or any Affiliate delivered
under this Plan shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under
this Plan, the applicable Award Agreement, the federal securities laws, or the rules, regulations and other requirements of the
Securities and Exchange Commission, any securities exchange or inter-dealer quotation system upon which such shares or other securities
are then listed or quoted and any other applicable federal, state, local or non-U.S. laws, and, without limiting the generality
of Section 9 of this Plan, the Committee may cause a legend or legends to be put on any such certificates to make appropriate
reference to such restrictions. Notwithstanding any provision in this Plan to the contrary, the Committee reserves the right to
add any additional terms or provisions to any Award granted under this Plan that it in its sole discretion deems necessary or
advisable in order that such Award complies with the legal requirements of any governmental entity to whose jurisdiction the Award
is subject.

 

    	 	17	 

     

    

 

(ii)  
The Committee may cancel an Award or any portion thereof if it determines, in its sole discretion, that legal or contractual restrictions
and/or blockage and/or other market considerations would make the Company’s acquisition of Common Shares from the public
markets, the Company’s issuance of Common Shares to the Participant, the Participant’s acquisition of Common Shares
from the Company and/or the Participant’s sale of Common Shares to the public markets, illegal, impracticable or inadvisable.
If the Committee determines to cancel all or any portion of an Award in accordance with the foregoing, unless doing so would violate
Section 409A of the Code, the Company shall pay to the Participant an amount equal to the excess of (A) the aggregate Fair Market
Value of the Common Shares subject to such Award or portion thereof canceled (determined as of the applicable exercise date, or
the date that the shares would have been vested or delivered, as applicable), over (B) the aggregate Exercise Price or Strike
Price (in the case of an Option or SAR, respectively) or any amount payable as a condition of delivery of Common Shares (in the
case of any other Award). Such amount shall be delivered to the Participant as soon as practicable following the cancellation
of such Award or portion thereof. The Committee shall have the discretion to consider and take action to mitigate the tax consequence
to the Participant in cancelling an Award in accordance with this clause.

 

(j)
Payments to Persons Other Than Participants. If the Committee shall find that any person to whom any amount is payable
under this Plan is unable to care for his affairs because of illness or accident, or is a minor, or has died, then any payment
due to such person or his estate (unless a prior claim therefor has been made by a duly appointed legal representative) may, if
the Committee so directs the Company, be paid to his spouse, child, relative, an institution maintaining or having custody of
such person, or any other person deemed by the Committee to be a proper recipient on behalf of such person otherwise entitled
to payment. Any such payment shall be a complete discharge of the liability of the Committee and the Company therefor.

 

(k)
Nonexclusivity of this Plan. Neither the adoption of this Plan by the Board nor the submission of this Plan to the
stockholders of the Company for approval shall be construed as creating any limitations on the power of the Board to adopt such
other incentive arrangements as it may deem desirable, including, without limitation, the granting of stock options or other equity-based
awards otherwise than under this Plan, and such arrangements may be either applicable generally or only in specific cases.

 

(l)
No Trust or Fund Created. Neither this Plan nor any Award shall create or be construed to create a trust or separate
fund of any kind or a fiduciary relationship between the Company or any Affiliate, on the one hand, and a Participant or other
person or entity, on the other hand. No provision of this Plan or any Award shall require the Company, for the purpose of satisfying
any obligations under this Plan, to purchase assets or place any assets in a trust or other entity to which contributions are
made or otherwise to segregate any assets, nor shall the Company maintain separate bank accounts, books, records or other evidence
of the existence of a segregated or separately maintained or administered fund for such purposes. Participants shall have no rights
under this Plan other than as general unsecured creditors of the Company, except that insofar as they may have become entitled
to payment of additional compensation by performance of services, they shall have the same rights as other employees under general
law.

 

(m)
Reliance on Reports. Each member of the Committee and each member of the Board shall be fully justified in acting
or failing to act, as the case may be, and shall not be liable for having so acted or failed to act in good faith, in reliance
upon any report made by the independent public accountant of the Company and/or its Affiliates and/or any other information furnished
in connection with this Plan by any agent of the Company or the Committee or the Board, other than himself.

 

(n)
Relationship to Other Benefits. No payment under this Plan shall be taken into account in determining any benefits
under any pension, retirement, profit sharing, group insurance or other benefit plan of the Company except as otherwise specifically
provided in such other plan.

 

    	 	18	 

     

    

 

(o)
Governing Law. The Plan shall be governed by and construed in accordance with the internal laws of the State of
Delaware, without giving effect to the conflict of laws provisions.

 

(p)
Severability. If any provision of this Plan or any Award or Award Agreement is or becomes or is deemed to be invalid,
illegal, or unenforceable in any jurisdiction or as to any person or entity or Award, or would disqualify this Plan or any Award
under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to the applicable
laws in the manner that most closely reflects the original intent of the Award or the Plan, or if it cannot be construed or deemed
amended without, in the determination of the Committee, materially altering the intent of this Plan or the Award, such provision
shall be construed or deemed stricken as to such jurisdiction, person or entity or Award and the remainder of this Plan and any
such Award shall remain in full force and effect.

 

(q)
Obligations Binding on Successors. The obligations of the Company under this Plan shall be binding upon any successor
corporation or organization resulting from the merger, amalgamation, consolidation or other reorganization of the Company, or
upon any successor corporation or organization succeeding to substantially all of the assets and business of the Company.

 

(r)  
Code Section 162(m) Approval. If so determined by the Committee, the provisions of this Plan regarding Performance
Compensation Awards shall be disclosed and reapproved by stockholders no later than the first stockholder meeting that occurs
in the fifth year following the year in which stockholders previously approved such provisions, in each case in order for certain
Awards granted after such time to be exempt from the deduction limitations of Section 162(m) of the Code. Nothing in this clause,
however, shall affect the validity of Awards granted after such time if such stockholder approval has not been obtained.

 

(s)
Expenses; Gender; Titles and Headings. The expenses of administering this Plan shall be borne by the Company and
its Affiliates. Masculine pronouns and other words of masculine gender shall refer to both men and women. The titles and headings
of the sections in this Plan are for convenience of reference only, and in the event of any conflict, the text of this Plan, rather
than such titles or headings shall control.

 

(t)  
Other Agreements. Notwithstanding the above, the Committee may require, as a condition to the grant of and/or the
receipt of Common Shares under an Award, that the Participant execute lock-up, stockholder or other agreements, as it may determine
in its sole and absolute discretion.

 

(u)
Section 409A. The Plan and all Awards granted hereunder are intended to comply with, or otherwise be exempt from,
the requirements of Section 409A of the Code. The Plan and all Awards granted under this Plan shall be administered, interpreted,
and construed in a manner consistent with Section 409A of the Code to the extent necessary to avoid the imposition of additional
taxes under Section 409A(a)(1)(B) of the Code. Notwithstanding anything in this Plan to the contrary, in no event shall the Committee
exercise its discretion to accelerate the payment or settlement of an Award where such payment or settlement constitutes deferred
compensation within the meaning of Section 409A of the Code unless, and solely to the extent that, such accelerated payment or
settlement is permissible under Section 1.409A-3(j)(4) of the Treasury Regulations. If a Participant is a “specified employee”
(within the meaning of Section 1.409A-1(i) of the Treasury Regulations) at any time during the twelve (12)-month period ending
on the date of his termination of employment, and any Award hereunder subject to the requirements of Section 409A of the Code
is to be satisfied on account of the Participant’s termination of employment, satisfaction of such Award shall be suspended
until the date that is six (6) months after the date of such termination of employment.

 

(v)
Payments. Participants shall be required to pay, to the extent required by applicable law, any amounts required
to receive Common Shares under any Award made under this Plan.

 

 

19

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