Document:

Exhibit 4.8

Confidential

THE OFFER, ISSUANCE AND SALE OF THIS WARRANT AND ANY SECURITIES THAT MAY BE ISSUED UPON EXERCISE THEREOF) HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. THE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES AND OTHER JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION (OTHER THAN PURSUANT TO RULE 144(b)(1), PROVIDED THAT THE COMPANY HAS RECEIVED CUSTOMARY REPRESENTATIONS CERTIFYING AS TO THE AVAILABILITY OF SUCH RULE 144(b)(1)), UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER APPLICABLE LAWS.

 

APRIL 14, 2016

 

__________________________________________________

 

WARRANT TO PURCHASE ORDINARY SHARES

OF

RADA ELECTRONICS INDUSTRIES LTD.

__________________________________________________

 

For VALUE RECEIVED, Legos Advisors Ltd. (together with its successors, transferees and assigns, the "Holder") is entitled to purchase subject to the provisions of this Warrant (this "Warrant") from RADA Electronics Industries Ltd., an Israeli company ("Company"), during the 18 months period following commencing on May 18, 2016 (respectively the "Closing Date" and the "Warrant Term"), at a purchase price per share equal to $0.2350 (as adjusted from time to time pursuant to the terms of this Warrant, the "Exercise Price"), up to 510,638 Ordinary Shares, par value NIS 0.015 per share, of the Company (the "Company Shares") (as adjusted from time to time pursuant to the terms of this Warrant), the shares purchasable upon exercise during the Warrant Term, as adjusted from time to time pursuant to the terms of this Warrant, shall be referred to herein as the "Warrant Shares".

 

1.         Exercise.

 

	 	
1.1.

	
Manner of Exercise. This Warrant may be exercised, at the Holder sole discretion, as follows:

 

	 	
1.1.1.

	
During the Warrant Term, in whole or in part, on one or more trenches during that term, provided that the amount of each trench shall not be in an amount less than US$ 50,000. The Warrant may be exercised by the surrender of this Warrant, together with the Notice of Exercise in the form attached hereto, duly completed and executed by the Holder, at the principal office of the Company or at such other office or agency as the Company may designate, accompanied by payment in full of the aggregate Exercise Price payable in respect of the Warrant Shares purchasable upon such exercise. The Exercise Price may be paid by cash, check, or wire transfer.

Confidential

 

	 	
1.2.

	
Effective Time of Exercise. Each exercise of this Warrant shall be deemed to have been effected immediately prior to the close of business on the day on which this Warrant shall have been surrendered to the Company as provided in Section 1.1 above. At such time, the person(s) in whose name(s) any certificates representing the applicable Warrant Shares shall be issuable upon exercise as provided in Section 1.3 below shall be deemed to have become the holder of record of such Warrant Shares represented by such certificates.

 

	 	
1.3.

	
Delivery to Holder. As soon as practicable after the exercise of this Warrant in whole or in part, and in any event within ten (10) days thereafter, the Company at its expense will cause to be issued in the name of, and delivered to, the Holder, or as such Holder may direct:

 

	 	
1.3.1.

	
a certificate(s) for the number of the applicable Warrant Shares to which such Holder shall be entitled, and

 

	 	
1.3.2.

	
in case such exercise is in part only, a new warrant(s) (dated the date hereof) of like tenor, calling in the aggregate on the face(s) thereof for the number of the applicable Warrant Shares equal to the number of such shares called for on the face of this Warrant minus the number of such shares purchased by the Holder upon such exercise as provided in Sections 1.1.

 

	 	
1.4.

	
Conditional Exercise. In case of an exercise made in connection with a public offering of the Company Shares pursuant to an effective registration statement under the Securities Act or the equivalent actions under the laws of another jurisdiction, or a Liquidity Event (as defined below), such exercise may be made conditional upon the closing of such offering or event.

 

For purposes of this Warrant, the term "Liquidity Event" shall mean: (i) a sale of all or substantially all of the Company's assets; (ii) a sale of all or substantially all of the Company's issued and outstanding shares, such that following the transaction more than fifty percent (50%) of the Company's issued shares are held by persons who, prior to the said transaction, held less than fifty percent (50%) of the Company's issued shares; or (iii) a merger or consolidation of the Company with or into another corporation, such that following the transaction more than fifty percent (50%) of the surviving entity's issued shares are held by persons who, prior to the said transaction, held less than fifty percent (50%) of the Company's issued shares.

 

2.         Adjustments

 

The number and kind of securities purchasable upon the exercise of this Warrant and the applicable Exercise Price shall be subject to adjustment from time to time as follows:

 

	 	
2.1.

	
Stock Splits, Dividends and Combinations. If the outstanding Company Shares shall be subdivided into a greater number of shares or a dividend or other distribution payable in additional shares shall be paid in respect of Common Shares, the applicable Exercise Price in effect immediately prior to such subdivision or at the record date of such dividend shall simultaneously with the effectiveness of such subdivision or immediately after the record date of such dividend be proportionately reduced. If outstanding Company Shares shall be combined into a smaller number of shares, the applicable Exercise Price in effect immediately prior to such combination shall, simultaneously with the effectiveness of such combination be proportionately increased. When any adjustment is required to be made in the applicable Exercise Price, the number of the applicable Warrant Shares purchasable upon the exercise of this Warrant shall be changed to the number determined by dividing (i) an amount equal to the number of shares issuable upon the exercise of this Warrant immediately prior to such adjustment, multiplied by the applicable Exercise Price in effect immediately prior to such adjustment, by (ii) the applicable Exercise Price in effect immediately after such adjustment.

- 2 -

Confidential

 

	 	
2.2.

	
Reclassification, Etc. In case of any reclassification or change of the outstanding securities of the Company or of any reorganization of the Company (or any other corporation the stock or securities of which are at the time receivable upon the exercise of this Warrant) or any similar corporate reorganization on or after the date hereof, then and in each such case the holder of this Warrant, upon the exercise hereof at any time after the consummation of such reclassification, change, reorganization, merger or conveyance, shall be entitled to receive, in lieu of the stock or other securities and property receivable upon the exercise hereof prior to such consummation, the stock or other securities or property to which such holder would have been entitled upon such consummation if such holder had exercised this Warrant immediately prior thereto, all subject to further adjustment as provided in Section 2; and in each such case, the terms of this Section 2 shall be applicable to the shares of stock or other securities properly receivable upon the exercise of this Warrant after such consummation.

 

	 	
2.3.

	
Other Transactions. In the event that the Company shall issue shares to its shareholders as a result of a split-off, spin-off or the like, then the Company shall only complete such issuance or other action if, as part thereof, allowance is made to protect the economic interest of the Holder either by increasing the number of the applicable Warrant Shares or by procuring that the Holder shall be entitled, on economically proportionate terms, to acquire additional shares of the spun-off or split-off entities. Upon each adjustment in the number or kind of Warrant Shares purchasable hereunder, the applicable Exercise Price shall be proportionately increased or decreased, as the case may be, in a manner that is the inverse of the manner in which the number of the applicable Warrant Shares purchasable hereunder shall be adjusted.

 

	 	
2.4.

	
Notice of Adjustments. Whenever the applicable Exercise Price or the number of the applicable Warrant Shares purchasable hereunder shall be adjusted pursuant to this Section 2, the Company shall prepare a certificate signed by an executive officer of the Company setting forth, in reasonable detail, the event requiring the adjustment, the amount of the adjustment, the method by which such adjustment was calculated, the applicable Exercise Price and the number of the applicable Warrant Shares purchasable hereunder after giving effect to such adjustment, and shall cause copies of such certificate to be delivered to the Holder.

 

3.         Investment Representations.

 

	 	
3.1.

	
The Holder is knowledgeable, sophisticated and experienced in making, and is qualified to make, decisions with respect to investments in securities representing an investment decision like that involved in the purchase of this Warrant and the Warrant Shares (the "Purchased Securities"), without limitation of the representations and warranties included herein and in the Purchase Agreement.

- 3 -

Confidential

 

	 	
3.2.

	
The Holder is acquiring the Purchased Securities in the ordinary course of its business and for its own account for investment only and with no present intention of distributing any of such Purchased Securities and does not have any current arrangement or understanding with any other persons regarding the distribution of such securities (this representation and warranty not limiting the Holder's right to sell or distribute in compliance with the Securities Act and the rules and regulations thereunder); nothing contained herein shall be deemed a representation or warranty by the Holder to hold the Purchased Securities for any period of time;

 

	 	
3.3.

	
The Holder will not, directly or indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit any offers to buy, purchase or otherwise acquire or take a pledge of) any of the Purchased Securities, nor will the Holder engage in any short sale that results in a disposition of any of the Purchased Securities by the Holder, except in compliance with the Securities Act and the rules and regulations thereunder and any applicable state securities laws; and

 

	 	
3.4.

	
The Holder is either an "accredited investor" within the meaning of Rule 501(a) promulgated under the Securities Act or is not a "US Person" within the meaning of Rule 902(k) under the Securities Act. Neither such inquiries nor any other due diligence investigation conducted by the Holder shall modify, limit or otherwise affect the Holder's right to rely on the Company's representations and warranties contained herein or in the Purchase Agreement.

 

	 	
3.5.

	
The Holder understands that its investment in the Purchased Securities involves a significant degree of risk, including a risk of total loss of Holder's investment. The Holder understands that no representation is being made as to the future value or market price of the Company Shares. The Holder has the knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of an investment in the Purchased Securities and has the ability to bear the economic risks of an investment in the Purchased Securities.

 

	 	
3.6.

	
The Holder understands that, until all of the applicable provisions of Section 3.7 hereof are satisfied, any certificates representing the Purchased Securities will bear a restrictive legend in substantially the following form:

 

"THE OFFER, ISSUANCE AND SALE OF THE SECURITIES EVIDENCED BY THIS CERTIFICATE (AND ANY SECURITIES THAT MAY BE ISSUED UPON EXERCISE OF THE SECURITIES EVIDENCED BY THIS CERTIFICATE) HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. THE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES AND OTHER JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION (OTHER THAN PURSUANT TO RULE 144(b)(1), PROVIDED THAT THE COMPANY HAS RECEIVED CUSTOMARY REPRESENTATIONS CERTIFYING AS TO THE AVAILABILITY OF SUCH RULE 144(kb(1)), UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER APPLICABLE LAWS."

 

- 4 -

Confidential

 

	 	
3.7.

	
Promptly following Rule 144(b)(1) becoming available, the Company shall (A) deliver to the transfer agent for the Company Shares (the "Transfer Agent") irrevocable instructions that the Transfer Agent shall reissue a certificate representing the applicable Warrant Shares without legends upon receipt by such Transfer Agent of: (a) the legended certificates for such Warrant Shares; and (b) either (1) a customary written representation by the Holder that Rule 144(b)(1) applies to the applicable Warrant Shares represented thereby or (2) a written statement by the Company that the Holder may sell the applicable Warrant Shares represented thereby in accordance with the Plan of Distribution contained in a registration statement that was declared effective under the Securities Act (the date on which the Transfer Agent receives all of the items listed in clauses (a), and (b) above, the "Legend Removal Date"), and (B) if required by the Transfer Agent, cause its counsel to deliver to the Transfer Agent one or more opinions to the effect that the removal of such legends in such circumstances may be effected under the Securities Act. From and after the Legend Removal Date, upon the Holder's written request, the Company shall promptly cause certificates evidencing the Holder's Warrant Shares referred to in such written request to be replaced with certificates which do not bear such restrictive legends, and Warrant Shares subsequently issued upon due exercise of the Warrants shall not bear such restrictive legends, provided the provisions of clauses (a) and (b) above, as applicable, are satisfied with respect to such Warrant Shares.

 

	
4.

	
Exemption from Registration. The Holder understands that the Purchased Securities are being offered and sold to it in reliance upon specific exemptions from the registration requirements of the Securities Act, the rules and regulations thereunder and state securities laws and that the Company is relying upon the truth and accuracy of, and the Holder's compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Holder set forth herein in order to determine the availability of such exemptions and the eligibility of the Holder to acquire the Purchased Securities.

 

5.         Transfer

 

	 	
5.1.

	
Subject to the restrictions on transfer provided herein and subject to Sections 3.6 and 3.7, this Warrant shall be transferable, in whole or in part, at the discretion of the Holder and the Company shall transfer this Warrant, in whole or in part, from time to time upon the books to be maintained by the Company for that purpose, upon surrender thereof for transfer accompanied by appropriate instructions for transfer and such other documents as may be reasonably required by the Company, including, if required by the Company, an opinion of its counsel to the effect that such transfer is exempt from the registration requirements of the Securities Act, to establish that such transfer is being made in accordance with the terms hereof, and a new Warrant(s) shall be issued to the transferee(s) and the surrendered Warrant shall be canceled by the Company.

 

	 	
5.2.

	
The Company will maintain a register containing the names and addresses of the Holder(s) of this Warrant. Until any transfer of this Warrant is made in the warrant register, the Company may treat the Holder of this Warrant as the absolute owner hereof for all purposes. Any Holder may change such Holder's address as shown on the warrant register by written notice to the Company requesting such change.

- 5 -

Confidential

 

	
6.

	
No Impairment. The Company will not, by amendment of its charter documents or through any reorganization, recapitalization, transfer of assets, consolidation, merger, dissolution, sale of assets, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder, or impair the economic interest of the Holder, but will at all times in good faith assist in the carrying out of all the provisions hereof and in taking of all such actions and making all such adjustments as may be necessary or appropriate in order to protect the rights and the economic interests of the Holder against impairment.

 

	
7.

	
Termination. This Warrant and the right to purchase securities upon exercise hereof shall terminate on 5:00 P.M. Eastern Time 18 months after the Closing Date.

 

	
8.

	
Notices of Certain Transactions. In case:

 

	 	
8.1.

	
the Company shall take a record of the holders of its Company Shares (or other shares or securities at the time deliverable upon the exercise of this Warrant) for the purpose of entitling or enabling them to receive any dividend or other distribution, or to receive any right to subscribe for or purchase any shares of any class or any other securities, or to receive any other right, to subscribe for or purchase any shares of any class or any other securities, or to receive any other right, or

 

	 	
8.2.

	
of any capital reorganization of the Company, any reclassification of the share capital of the Company, any Liquidity Event, or

 

	 	
8.3.

	
of the voluntary or involuntary dissolution, liquidation or winding-up of the Company, or

 

	 	
8.4.

	
of a public offering of the Company Shares pursuant to an effective registration statement under the Securities Act or the equivalent actions under the laws of another jurisdiction, 

 

then, and in each such case, the Company will deliver to the Holder a notice specifying, as the case may be, (i) the date on which a record is to be taken for the purpose of such dividend, distribution or right, and stating the amount and character of such dividend, distribution or right, or (ii) the estimated effective date on which such reorganization, reclassification, Liquidity Event, dissolution, liquidation or winding up is to take place, and the time, if any is to be fixed, as of which the holders of record of Company Shares (or such other shares or securities at the time deliverable upon such reorganization, reclassification, Liquidity Event, dissolution, liquidation or winding up) are to be determined. Such notice shall be delivered ten (10) days prior to the record date or estimated effective date for the event specified in such notice.

 

	
9.

	
Reservation of Shares. The Company will at all times reserve and keep available, solely for the issuance and delivery upon the exercise of this Warrant, such Warrant Shares and other shares, securities and property, as from time to time shall be issuable upon the exercise of this Warrant.

 

	
10.

	
Replacement of Warrants. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and (in the case of loss, theft or destruction) upon delivery of an indemnity agreement reasonably satisfactory to the Company, or (in the case of mutilation) upon surrender and cancellation of this Warrant, the Company will issue, in lieu thereof, a new Warrant of like tenor, dated as of the date hereof.

- 6 -

Confidential

 

This Warrant is exchangeable, without expense, at the option of the Holder, upon presentation and surrender hereof to the Company or at the office of its stock transfer agent, if any, for other warrants of different denominations entitling the holders thereof to purchase in the aggregate the same number of the applicable Warrant Shares purchasable hereunder.

 

	
11.

	
Notices. Any notice required or permitted by this Warrant shall be in writing and shall be deemed sufficient upon receipt, when delivered personally or by courier, overnight delivery service or confirmed facsimile, or forty-eight (48) hours after being deposited in the regular mail as certified or registered mail (airmail if sent internationally) with postage prepaid, addressed (a) if to the Holder, to the address of the Holder most recently furnished in writing to the Company and (b) if to the Company, to the address set forth below or subsequently modified by written notice to the Holder.

 

	 	
11.1.

	
If to Holder:                       to the address set forth on the signature page

 

If to Company:

 

RADA Electronics Industries Ltd.

7 Giborei Israel St.. Netanya 4250407, Israel

Attention: Chief Executive Officer

Telephone No.: (972)-(9)- 892111

Facsimile No.: (972)-(9)- 8855885

Email: Zvika.alon@rada.com

 

Each of the above addressees may change its address for purposes of this Section by giving to the other addressees notice of such new address in conformance with this paragraph.

 

	
12.

	
No Rights as Shareholder. The Holder shall not have any rights as a shareholder of the Company with regard to the applicable Warrant Shares prior to the exercise of this Warrant, and then with respect to such Warrant Shares purchasable upon such exercise.

 

	
13.

	
No Fractional Interest. No fractional shares will be issued in connection with any exercise hereunder, but in lieu of such fractional shares which would otherwise be issuable the number of shares shall rounded to the nearest whole number.

 

	
14.

	
Entire Agreement. This Warrant constitutes the entire agreement between the parties hereto with regard to the subject matters hereof, and supercedes any prior communications, agreements and/or understandings between the parties hereto with regard to the subject matters hereof.

 

	
15.

	
Amendment or Waiver. This Warrant may be amended only by a written instrument signed by the Company and the Holder. Any term of this Warrant may be waived only by an instrument in writing signed by the party against which enforcement of the waiver is sought.

 

	
16.

	
Successors. All the covenants and provisions hereof by or for the benefit of the Holder shall bind and inure to the benefit of its respective successors and assigns hereunder.

 

	
17.

	
Governing Law; Jurisdiction. This Warrant shall be governed by and construed in accordance with the laws of the State of Israel, without giving effect to principles of conflicts of law. The parties hereby submit any dispute arising under or in relation to this Warrant to the exclusive jurisdiction of the competent court for the District of Tel Aviv-Jaffa.

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Confidential

 

	
18.

	
Headings. The headings in this Warrant are for purposes of reference only and shall not limit or otherwise affect the meaning of any provision of this Warrant.

 

	
19.

	
Counterparts. This Warrant may be executed in one or more counterparts, all of which shall be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other party, it being understood that all parties need not sign the same counterpart and that signatures may be provided by facsimile transmission.

 

- Signature page follows -

 

- 8 -

Confidential

 

This WARRANT TO PURCHASE ORDINARY SHARES OF RADA ELECTRONICS INDUSTRIES LTD. is executed as of the date first set forth above.

 

	 	
RADA ELECTRONICS INDUSTRIES LTD.

	 
	 	 	 	 
	
 

	
By: 

	/s/ Zvi Alon                            /s/ Shiri Lazarovich	 
	 	 	Name: Zvi Alon                      Shiri Lazarovich	 
	 	 	Title: CEO                                CFO	 

 

	
Acknowledged and Agreed to: 

 

LEGOS ADVISORS LTD.

 

By:                                                                                        

Name:

Title:

 

	
Address:

 

	
Telephone No:

	
Facsimile No.:

 

- 9 -

Confidential

 

NOTICE OF EXERCISE

 

	
To: RADA Electronics Industries Ltd.

	
Date: [_______ __, 201_]

 

The undersigned, pursuant to the provisions set forth in the attached WARRANT TO PURCHASE ORDINARY SHARES OF RADA ELECTRONICS INDUSTRIES LTD. hereby irrevocably elects to:

 

☐ purchase                       Company Shares covered by such Warrant and herewith makes payment of $                , representing the full purchase price for such shares at the price per share provided for in such Warrant (as adjusted from time to time pursuant to the terms of this Warrant), or

 

Please issue a certificate representing the Warrant Shares in the name of the undersigned or as otherwise indicated below, and if the number of Warrant Shares shall not be all the Warrant Shares purchasable upon exercise of the Warrant, that a new Warrant for the balance of the Warrant Shares purchasable upon exercise of this Warrant be registered in the name of the undersigned or as otherwise indicated below and delivered to the address stated below:

 

Name:

Address:

ID or Social Security No.:

 

______________________                                                                                                 _________________________

(Date)                                                                                                                                            (Print Name)

                                                                                                                                                     _________________________

                                                                                                                                                       (Signature)

 

- 10 -ChoiceOne Financial Services, Inc. - 10-K

EXHIBIT 10.3

 

CHOICEONE FINANCIAL SERVICES, INC.

AMENDED AND RESTATED EXECUTIVE STOCK INCENTIVE PLAN

 

SECTION 1

 

Establishment of Plan; Purpose of Plan

 

 1.1 
       Establishment of Plan.  The Company hereby establishes the AMENDED AND RESTATED EXECUTIVE
STOCK INCENTIVE PLAN (the “Plan”) for its corporate and Subsidiary officers and other key employees. The Plan permits
the grant and award of Stock Options, Stock Appreciation Rights and Stock Awards.

 

 1.2 
       Purpose of Plan.  The purpose of the Plan is to provide officers and key management
employees of the Company and its Subsidiaries with an increased incentive to make significant and extraordinary contributions to
the long-term performance and growth of the Company and its Subsidiaries, to join the interests of officers and key employees with
the interests of the Company’s shareholders through the opportunity for increased stock ownership and to attract and retain officers
and key employees of exceptional abilities. The Plan is further intended to provide flexibility to the Company in structuring long-term
incentive compensation to best promote the foregoing objectives.

 

SECTION 2

 

Definitions

 

 The following words have the following meanings unless a different meaning is plainly required by the
context:

 

 2.1 
       “Act” means the Securities Exchange Act of 1934, as amended.

 

 2.2 
        “Board” means the Board of Directors of the Company.

 

 2.3 
        “Change in Control,” unless otherwise defined in an Incentive Award agreement, means an occurrence
of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A issued under the Act.
Without limiting the inclusiveness of the definition in the preceding sentence, a Change in Control of the Company shall be deemed
to have occurred as of the first day that any one or more of the following conditions is satisfied: (a) any Person is or becomes
the “beneficial owner” (as defined in Rule 13d-3 under the Act), directly or indirectly, of securities of the Company
representing 25% or more of the combined voting power of the Company’s then outstanding securities; (b) the failure at any time
of the Continuing Directors to constitute at least a majority of the Board; or (c) any of the following occur: (i) any merger or
consolidation of the Company, other than a merger or consolidation in which the voting securities of the Company immediately prior
to the merger or consolidation continue to represent (either by remaining outstanding or being converted into securities of the
surviving entity) 60% or more of the combined voting power of the Company or surviving entity immediately after the merger or consolidation with another entity;
(ii) any sale, exchange, lease, mortgage, pledge, transfer or other disposition (in a single transaction or a series of related
transactions) of assets or earning power aggregating more than 50% of the assets or earning power of the Company on a consolidated
basis; (iii) any complete liquidation or dissolution of the Company; (iv) any reorganization, reverse stock split or recapitalization
of the Company which would result in a Change in Control as otherwise defined in this Plan; or (v) any transaction or series of
related transactions having, directly or indirectly, the same effect as any of the foregoing.

 

     

     

    

 

 2.4 
       “Code” means the Internal Revenue Code of 1986, as amended.

 

 2.5 
       “Committee” means the Personnel and Benefits Committee of the Board or such other committee
as the Board shall designate to administer the Plan. The Committee shall consist of at least two members of the Board and all of
its members shall be “non-employee directors” as defined in Rule 16b-3 issued under the Act.

 

 2.6 
       “Common Stock” means the Common Stock of the Company.

 

 2.7 
       “Company” means ChoiceOne Financial Services, Inc., a Michigan corporation, and its successors
and assigns.

 

 2.8 
       “Consensual Severance” means the voluntary termination of all employment by the Participant
with the Company or any of its Subsidiaries that the Committee determines to be in the best interests of the Company.

 

 2.9 
       “Continuing Directors” means the individuals constituting the Board as of the date this Plan
was adopted and any subsequent directors, if appointed or nominated by at least a majority of the Continuing Directors in office
at the time of the nomination or appointment, but specifically excluding any individual whose initial assumption of office occurs
as a result of either an actual or threatened solicitation in opposition to any Continuing Director subject to Rule 14a-12(c) of
Regulation 14A issued under the Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person
other than the Board.

 

 2.10 
     “Employee Benefit Plan” means any plan or program established by the Company or a Subsidiary
for the compensation or benefit of employees of the Company or any of its Subsidiaries.

 

 2.11 
     “Incentive Award” means the award or grant of a Stock Option, Stock Appreciation Right or
Stock Award to a Participant pursuant to the Plan.

 

2.12       “Market
Value” of any security on any given date means: (a) if the security is listed for trading on The Nasdaq Stock Market or
one or more national securities exchanges, the last reported sales price on the date in question, or if the security shall
not have been traded on the principal exchange on the applicable date, the last reported sales price on the first day before
that date on which such security was so traded; (b) if the security is not so listed for trading but is traded in the
over-the-counter market, the mean of highest bid and lowest asked prices for the security on the date in question, or if
there are no bid and asked prices for the security on that date, the mean of the highest bid and lowest asked prices on the
first day before that date on which such prices existed; or (c) if neither (a) nor (b) is applicable, the value as determined
by any means considered fair and reasonable by the Committee, which determination shall be final and binding on all
parties.

 

    2 

     

    

 

 2.13 
     “Participant” means a corporate officer or any key employee of the Company or its Subsidiaries
who is granted an Incentive Award under the Plan.

 

 2.14 
     “Person” has the same meaning as set forth in Sections 13(d) and 14(d)(2) of the Act.

 

 2.15 
     “Plan Year” means the 12-month period beginning January 1 of each year, except that the Plan
Year for purposes of the year in which the Plan becomes effective shall be that period between the effective date of the Plan and
December 31 of such year.

 

 2.16 
     “Retirement” means the voluntary termination of all employment by the Participant after the
Participant has attained 55 years of age and completed six years of service with the Company or any of its Subsidiaries or
as otherwise may be set forth in the Incentive Award agreement or other grant document with respect to a Participant and a particular
Incentive Award.

 

 2.17 
     “Stock Appreciation Right” means any right granted to a Participant pursuant to Section 6
of the Plan.

 

 2.18 
     “Stock Award” means an award of Common Stock awarded to a Participant pursuant to Section
7 of the Plan.

 

 2.19 
     “Stock Option” means the right to purchase Common Stock at a stated price for a specified
period of time. For purposes of the Plan, a Stock Option may be either an incentive stock option within the meaning of Section
422(b) of the Code or a nonqualified stock option.

 

 2.20 
     “Subsidiary” means any corporation or other entity of which 50% or more of the outstanding
voting stock or voting ownership interest is directly or indirectly owned or controlled by the Company or by one or more Subsidiaries
of the Company.

 

    3 

     

    

 

SECTION 3

 

Administration

 

 3.1 
        Power and Authority.  The Committee shall administer the Plan. The Committee may delegate
record keeping, calculation, payment and other ministerial administrative functions to individuals designated by the Committee,
who may be employees of the Company and its Subsidiaries. Except as limited in this Plan, the Committee shall have all of the express
and implied powers and duties set forth in this Plan, shall have full power and authority to interpret the provisions of the Plan
and Incentive Awards granted under the Plan and shall have full power and authority to supervise the administration of the Plan
and Incentive Awards granted under the Plan and to make all other determinations considered necessary or advisable for the administration
of the Plan. All determinations, interpretations and selections made by the Committee regarding the Plan shall be final and conclusive.
The Committee shall hold its meetings at such times and places as it deems advisable. Action may be taken by a written instrument
signed by a majority of the members of the Committee and any action so taken shall be fully as effective as if it had been taken
at a meeting duly called and held. The Committee shall make such rules and regulations for the conduct of its business as it deems
advisable.

 

 3.2 
        Grants or Awards to Participants.  In accordance with and subject to the provisions
of the Plan, the Committee shall have the authority to determine all provisions of Incentive Awards as the Committee may deem necessary
or desirable and as are consistent with the terms of the Plan, including, without limitation, the following: (a) the persons who
shall be selected as Participants; (b) the nature and extent of the Incentive Awards to be made to each Participant (including
the number of shares of Common Stock to be subject to each Incentive Award, any exercise price, the manner in which an Incentive
Award will vest or become exercisable and the form of payment for the Incentive Award); (c) the time or times when Incentive Awards
will be granted; (d) the duration of each Incentive Award; and (e) the restrictions and other conditions to which payment or vesting
of Incentive Awards may be subject.

 

 3.3 
        Amendments or Modifications of Awards.  The Committee shall have the authority to
amend or modify the terms of any outstanding Incentive Award in any manner, provided that the amended or modified terms are not
prohibited by the Plan as then in effect, including, without limitation, the authority to: (a) modify the number of shares or other
terms and conditions of an Incentive Award; (b) extend the term of an Incentive Award; (c) accelerate the exercisability or vesting
or otherwise terminate any restrictions relating to an Incentive Award; (d) accept the surrender of any outstanding Incentive Award;
and (e) to the extent not previously exercised or vested, authorize the grant of new Incentive Awards in substitution for surrendered
Incentive Awards.

 

3.4 
        Indemnification of Committee Members.  Neither any member or
former member of the Committee nor any individual to whom authority is or has been delegated shall be personally responsible
or liable for any act or omission in connection with the performance of powers or duties or the exercise of discretion or
judgment in the administration and implementation of the Plan. Each person who is or shall have been a member of the
Committee shall be indemnified and held harmless by the Company from and against any cost, liability or expense imposed or
incurred in connection with such person’s or the Committee’s taking or failing to take any action under the Plan.
Each such person shall be justified in relying on information furnished in connection with the Plan’s administration by
any appropriate person or persons.

 

    4 

     

    

 

SECTION 4

 

Shares Subject to the Plan

 

 4.1 
       Number of Shares.  Subject to adjustment as provided in Section 4.2 of the Plan, the
total number of shares of Common Stock available for Incentive Awards under the Plan shall be (a) for the initial Plan Year, 5%
of the total number of shares of Common Stock outstanding at the time the Plan becomes effective; plus (b) in each subsequent Plan
Year, an additional number of shares of Common Stock not to exceed 2% of the number of shares of Common Stock outstanding as reported
in the Company’s Annual Report on Form 10-K for the fiscal year ending immediately before such Plan Year such that at the beginning
of each Plan Year after the initial Plan Year there shall be available, in addition to any amount of shares remaining from the
5% authorization for the initial Plan Year, a minimum number of shares equal to 2% of the number of shares of Common Stock outstanding;
plus (c) there shall be carried forward and available for Incentive Awards under the Plan all of the following (subject to adjustment
as provided in Section 4.2): (i) shares subject to Incentive Awards that are canceled, surrendered, modified, exchanged for substitute
Incentive Awards or expire or terminate prior to the exercise or vesting of the Incentive Award in full; (ii) with respect to any
succeeding Plan Year, any unused portion of the amount set forth in subsection (a) above; and (iii) shares that are surrendered
to the Company in connection with the exercise or vesting of an Incentive Award, whether previously owned or otherwise subject
to such Incentive Award. Such shares shall be authorized and may be either unissued or treasury shares.

 

 4.2 
       Adjustments.

 

(a)       Stock Dividends and Distributions.  If the number of shares of Common Stock
outstanding changes by reason of a stock dividend, stock split, recapitalization or other general distribution of Common Stock
or other securities to holders of Common Stock, the number and kind of securities subject to Incentive Awards and reserved for
issuance under the Plan, together with applicable exercise prices, as well as the number of shares available for issuance under
the Plan, shall be adjusted appropriately. No fractional shares shall be issued pursuant to the Plan and any fractional shares
resulting from such adjustments shall be eliminated from the respective Incentive Awards.

 

    5 

     

    

 

(b)    
  Other Actions Affecting Common Stock.  If there occurs, other than as described in the preceding
subsection, any merger, business combination, recapitalization, reclassification, subdivision or combination approved by the
Board that would result in the Persons who were shareholders of the Company immediately prior to the effective time of any
such transaction owning or holding, in lieu of or in addition to shares of Common Stock, other securities, money and/or
property (or the right to receive other securities, money and/or property) immediately after the effective time of such
transaction, then the outstanding Incentive Awards and reserves for Incentive Awards under this Plan shall be adjusted in
such manner and at such time as shall be equitable under the circumstances. It is intended that in the event of any such
transaction, Incentive Awards under this Plan shall entitle the holder of each Incentive Award to receive (upon exercise in
the case of Stock Options), in lieu of or in addition to shares of Common Stock, any other securities, money and/or property
receivable upon consummation of any such transaction by holders of Common Stock with respect to each share of Common Stock
outstanding immediately prior to the effective time of such transaction; upon any such adjustment, holders of Incentive
Awards under this Plan shall have only the right to receive in lieu of or in addition to shares of Common Stock such other
securities, money and/or other property as provided by the adjustment. If the agreement, resolution or other document
approved by the Board to effect any such transaction provides for the adjustment of Incentive Awards under the Plan in
connection with such transaction, then the adjustment provisions contained in such agreement, resolution or other document
shall be final and conclusive.

 

SECTION 5

 

Stock Options

 

 5.1 
        Grant.  A Participant may be granted one or more Stock Options under the Plan. The
Committee, in its discretion, may provide in the initial grant of a Stock Option for the subsequent automatic grant of additional
Stock Options for the number of shares that are subject to the initial Stock Option and surrendered to the Company in connection
with the exercise of the initial or any subsequently granted Stock Option. Stock Options shall be subject to such terms and conditions,
consistent with the other provisions of the Plan, as may be determined by the Committee in its sole discretion. The Committee may
vary, among Participants and among Stock Options granted to the same Participant, any and all of the terms and conditions of the
Stock Options granted under the Plan. The Committee shall have complete discretion in determining the number of Stock Options granted
to each Participant. The Committee may designate whether or not a Stock Option is to be considered an incentive stock option as
defined in Section 422(b) of the Code; provided, that the number of shares of Common Stock that may be designated as subject
to incentive stock options for any given Participant shall be limited to that number of shares that become exercisable for the
first time by the Participant during any Plan Year (under all plans of the Company and its Subsidiaries) and have an aggregate
Market Value less than or equal to $100,000 (or such other amount as may be set forth in the Code) and all shares subject to an
Incentive Award that have a Market Value in excess of such aggregate amount shall automatically be subject to Stock Options that
are not incentive stock options.

 

    6 

     

    

 

5.2 
        Stock Option Agreements.  Stock Options shall be evidenced by stock option agreements
containing such terms and conditions, consistent with the provisions of the Plan, as the Committee shall from time to time determine.
To the extent not covered by the stock option agreement, the terms and conditions of this Section 5 shall govern.

 

 5.3 
        Stock Option Price.  The per share Stock Option price shall be determined by the Committee,
but shall be a price that is equal to or higher than the par value of the Company’s Common Stock; provided that the per
share Stock Option price for any shares designated as incentive stock options shall be equal to or greater than 100% of the Market
Value on the date of grant.

 

 5.4 
        Medium and Time of Payment.  The exercise price for each share purchased pursuant
to a Stock Option granted under the Plan shall be payable in cash or, if the Committee consents, in shares of Common Stock (including
Common Stock to be received upon a simultaneous exercise) or other consideration substantially equivalent to cash. The time and
terms of payment may be amended with the consent of a Participant before or after exercise of a Stock Option. The Committee may
from time to time authorize payment of all or a portion of the Stock Option price in the form of a promissory note or other deferred
payment installments according to such terms as the Committee may approve. The Board may restrict or suspend the power of the Committee
to permit such loans and may require that adequate security be provided.

 

 5.5 
        Stock Options Granted to Ten Percent Shareholders.  No Stock Option granted to any
Participant who at the time of such grant owns, together with stock attributed to such Participant under Section 424(d) of the
Code, more than 10% of the total combined voting power of all classes of stock of the Company or any of its Subsidiaries may be
designated as an incentive stock option, unless such Stock Option provides an exercise price equal to at least 110% of the Market
Value of the Common Stock and the exercise of the Stock Option after the expiration of five years from the date of grant of the
Stock Option is prohibited by its terms.

 

5.6          Limits
on Exercisability.  Except as provided in Section 5.5, Stock Options shall be exercisable for such periods, not
to exceed 10 years from the date of grant, as may be fixed by the Committee. At the time of the exercise of a Stock Option, the
holder of the Stock Option, if requested by the Committee, must represent to the Company that the shares are being acquired for
investment and not with a view to the distribution thereof. The Committee may in its discretion require a Participant to continue
the Participant’s service with the Company and its Subsidiaries for a certain length of time prior to a Stock Option becoming
exercisable and may eliminate such delayed vesting provisions.

 

    7 

     

    

 

5.7 
        Restrictions on Transferability.

 

(a)       General.  Unless the Committee otherwise consents (before or after the option
grant) or unless the stock option agreement or grant provides otherwise; (i) no incentive stock options granted under the Plan
may be sold, exchanged, transferred, pledged, assigned or otherwise alienated or hypothecated except by will or the laws of descent
and distribution; and (ii) all Stock Options that are not incentive stock options may be transferred, provided, that as
a condition to any such transfer the transferee must execute a written agreement permitting the Company to withhold from the shares
subject to the Stock Option a number of shares having a Market Value at least equal to the amount of any federal, state or local
withholding or other taxes associated with or resulting from the exercise of the Stock Option. All provisions of a Stock Option
that are determined with reference to the Participant, including without limitation those that refer to the Participant’s employment
with the Company or its Subsidiaries, shall continue to be determined with reference to the Participant after any transfer of a
Stock Option.

 

(b)       Other Restrictions.  The Committee may impose other restrictions on any
shares of Common Stock acquired pursuant to the exercise of a Stock Option under the Plan as the Committee deems advisable, including,
without limitation, restrictions under applicable federal or state securities laws.

 

 5.8 
        Termination of Employment.

 

(a) General.  If a Participant is no longer employed by the Company or its Subsidiary for any reason
other than the Participant’s Consensual Severance, Retirement, death, disability or termination for cause, the Participant may
exercise his or her Stock Options in accordance with their terms for a period of three months after such termination of employment
unless the terms of the applicable stock option agreement or grant provide otherwise, but only to the extent the Participant was
entitled to exercise the Stock Options on the date of termination. For purposes of the Plan: (i) a transfer of an employee from
the Company to any Subsidiary; (ii) a leave of absence, duly authorized in writing by the Company, for military service or for
any other purpose approved by the Company if the period of such leave does not exceed 90 days; and (iii) a leave of absence in
excess of 90 days, duly authorized in writing by the Company, provided the employee’s right to reemployment is guaranteed either
by statute, contract or written policy of the Company shall not be deemed a termination of employment. For purposes of the Plan,
termination of employment shall be considered to occur on the date on which the employee is no longer obligated to perform services
for the Company or any of its Subsidiaries and the employee’s right to reemployment is not guaranteed either by statute, contract
or written policy of the Company, regardless of whether the employee continues to receive compensation from the Company or any
of its Subsidiaries after such date.

 

(b) Consensual
Severance.  If a Participant ceases to be employed by the Company or one of its Subsidiaries due to Consensual
Severance, the Committee may, in its sole discretion, permit the Participant to exercise his or her Stock Options in
accordance with their terms and to the extent that the Participant was entitled to exercise the Stock Options on the date of
termination for a period of time after such termination of employment as may be determined by the Committee, provided, that
such period may not extend beyond the earlier of three years after the date of termination or the dates on which such Stock
Options expire by their terms.

 

    8 

     

    

 

(c) Retirement.  If a Participant ceases to be employed by the Company or one of its Subsidiaries due
to Retirement, the Participant may exercise his or her Stock Options in accordance with their terms for a period of three years
after such termination of employment unless such Stock Options earlier expire by their terms, but only to the extent that the Participant
was entitled to exercise the Stock Options on the date of termination.

 

(d) Disability.  If a Participant ceases to be employed by the Company or one of its Subsidiaries due
to the Participant’s disability, he or she may exercise his or her Stock Options in accordance with their terms for one year after
he or she ceases to be employed unless such Stock Options earlier expire by their terms, but only to the extent that the Participant
was entitled to exercise the Stock Options on the date of such termination.

 

(e) Death.  If a Participant dies either while an employee or otherwise during a time when the Participant
could have exercised a Stock Option, the Stock Options issued to such Participant shall be exercisable in accordance with
their terms by the personal representative of such Participant or other successor to the interest of the Participant for a period
of one year after such Participant’s death to the extent that the Participant was entitled to exercise the Stock Options on the
date of death but not beyond the original term of the Stock Options.

 

(f)  Termination for Cause.  If a Participant’s employment is terminated for cause, the Participant
shall have no further right to exercise any Stock Options previously granted him or her.

 

SECTION 6

 

Stock Appreciation Rights

 

6.1          Grant.  A
Participant may be granted one or more Stock Appreciation Rights under the Plan and such Stock Appreciation Rights shall be subject
to such terms and conditions, consistent with the other provisions of the Plan, as shall be determined by the Committee in its
sole discretion. A Stock Appreciation Right may relate to a particular Stock Option and may be granted simultaneously with or
subsequent to the Stock Option to which it relates. Stock Appreciation Rights shall be subject to the same restrictions and conditions
as Stock Options under subsections 5.6, 5.7 and 5.8 of the Plan. To the extent granted in tandem with a Stock Option, the exercise
of a Stock Appreciation Right shall, in exchange for the right to exercise a related Stock Option, entitle a Participant to an
amount equal to the appreciation in value of the shares covered by the related Stock Option surrendered. Such appreciation in
value shall be equal to the excess of the Market Value of such shares at the time of the exercise of the Stock Appreciation Right
over the option price of such shares.

 

    9 

     

    

 

 6.2 
         Exercise; Payment.  To the extent granted in tandem with a Stock Option, Stock
Appreciation Rights may be exercised only when a related Stock Option could be exercised and only when the Market Value of the
stock subject to the Stock Option exceeds the exercise price of the Stock Option. The Committee shall have discretion to determine
the form of payment made upon the exercise of a Stock Appreciation Right, which may take the form of shares of Common Stock.

 

SECTION 7

 

Stock Awards

 

 7.1 
        Grant.  A Participant may be granted one or more Stock Awards under the Plan. Stock
Awards shall be subject to such terms and conditions, consistent with the other provisions of the Plan, as may be determined by
the Committee in its sole discretion.

 

 7.2 
         Rights as a Shareholder.  A Participant shall have all voting, dividend, liquidation
and other rights with respect to shares of Common Stock issued to the Participant as a Stock Award under this Section 7 upon the
Participant becoming the holder of record of the Common Stock granted pursuant to such Stock Awards; provided, that the
Committee may impose such restrictions on the assignment or transfer of Common Stock awarded pursuant to a Stock Award as it deems
appropriate and may require the Participant to continue in the employ of the Company or a Subsidiary for a specified period of
time after the award.

 

SECTION 8

 

Change in Control

 

Without in any way limiting the Committee’s discretion, the Committee may include in any Incentive
Award provisions for acceleration of any vesting or other similar requirements or for the elimination of any restrictions upon
Incentive Awards upon a Change in Control of the Company. The Committee also may include provisions for Participants to receive
cash in lieu of outstanding Stock Options upon a Change in Control of the Company.

 

SECTION 9

 

General Provisions

 

9.1           No
Rights to Awards.  No Participant or other person shall have any claim to be granted any Incentive Award under the
Plan and there is no obligation of uniformity of treatment of Participants or holders or beneficiaries of Incentive Awards under
the Plan. The terms and conditions of Incentive Awards of the same type and the determination of the Committee to grant a waiver
or modification of any Incentive Award and the terms and conditions thereof need not be the same with respect to each Participant
or among awards to the same Participant.

 

    10 

     

    

 

 9.2 
        Withholding.  The Company or a Subsidiary shall be entitled to (a) withhold and deduct
from future wages of a Participant (or from other amounts that may be due and owing to a Participant from the Company or a Subsidiary),
or make other arrangements for the collection of, all amounts necessary to satisfy any and all federal, state and local withholding
and employment-related tax requirements attributable to an Incentive Award or any action related to an Incentive Award, including,
without limitation, the grant, exercise or vesting of, or payment of dividends with respect to, an Incentive Award or a disqualifying
disposition of Common Stock received upon exercise of an incentive stock option; or (b) require a Participant promptly to remit
the amount of such withholding to the Company before taking any action with respect to an Incentive Award. Unless the Committee
determines otherwise, withholding may be satisfied by withholding Common Stock to be received upon exercise or by delivery to the
Company of previously owned Common Stock. The Company may establish such rules and procedures concerning timing of any withholding
election as it deems appropriate.

 

 9.3 
        Compliance With Laws; Listing and Registration of Shares.  All Incentive Awards
granted under the Plan (and all issuances of Common Stock or other securities under the Plan) shall be subject to all applicable
laws, rules and regulations and to the requirement that if at any time the Committee shall determine, in its discretion, that the
listing, registration or qualification of the shares covered thereby upon any securities exchange or under any state or federal
law, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition of, or in connection
with, the grant of such Incentive Award or the issue or purchase of shares thereunder, such Incentive Award may not be exercised
in whole or in part, or the restrictions on such Incentive Award shall not lapse, unless and until such listing, registration,
qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Committee.

 

 9.4 
        No Limit on Other Compensation Arrangements.  Nothing contained in the Plan shall
prevent the Company or any Subsidiary from adopting or continuing in effect other or additional compensation arrangements, including
the grant of stock options and other stock-based awards and such arrangements may be either generally applicable or applicable
only in specific cases.

 

 9.5 
        No Right to Employment.  The grant of an Incentive Award shall not be construed as
giving a Participant the right to be retained in the employ of the Company or any Subsidiary. The Company or any Subsidiary may
at any time dismiss a Participant from employment, free from any liability or any claim under the Plan, unless otherwise expressly
provided in the Plan or in any written agreement with a Participant.

 

 9.6 
        Suspension of Rights under Incentive Awards.  The Company, by written notice to a
Participant, may suspend a Participant’s and any transferee’s rights under any Incentive Award for a period not to exceed 30 days
while the termination for cause of that Participant’s employment with the Company and its Subsidiaries is under consideration.

 

    11 

     

    

 

9.7 
        Governing Law.  The validity, construction and effect of the Plan and any rules and
regulations relating to the Plan shall be determined in accordance with the laws of the State of Michigan and applicable federal
law.

 

 9.8 
        Severability.  If any provision of the Plan shall be held illegal or invalid for any
reason, the illegality or invalidity shall not affect the remaining provisions of the Plan and the Plan shall be construed and
enforced as if the illegal or invalid provision had not been included.

 

 9.9 
        Change of Name.  The Plan shall be automatically amended to reflect any change in
the name of the Company.

 

SECTION 10

 

Termination and Amendment

 

The Board may terminate the Plan at any time, or may from time to time amend the Plan as it deems proper
and in the best interests of the Company, provided that no such amendment may impair any outstanding Incentive Award without the
consent of the Participant, except according to the terms of the Plan or the Incentive Award. No termination, amendment or modification
of the Plan shall become effective with respect to any Incentive Award previously granted under the Plan without the prior written
consent of the Participant holding such Incentive Award unless such amendment or modification operates solely to the benefit of
the Participant.

 

SECTION 11

 

Effective Date and Duration of the Plan

 

This Plan shall take effect April 27, 2000, subject to approval by the shareholders. No Incentive Award
shall be granted under the Plan after April 26, 2010.

 

    12

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