Document:

vemanti_ex109.htm

EXHIBIT 10.9
  
 VEMANTI GROUP, INC.
  
 EQUITY COMMITMENT AGREEMENT
  
 Equity Commitment Agreement (this “Agreement”) is entered into as of March 11, 2022 (the “Execution Date”), by and between Vemanti Group, Inc., a Nevada corporation (the “Company”), and Alpha Sigma Capital Fund LP, a Delaware corporation (the “Investor”).
  
 WHEREAS, the parties desire that, upon the terms and subject to the conditions contained herein, the Investor shall request that the Company issue and sell to the Investor, from time to time as provided herein, in private transactions exempt from the registration requirements of the Securities Act (as defined below) of up to Two Million Dollars ($2,000,000.00) of the common stock of the Company;
  
 NOW, THEREFORE, the parties hereto agree as follows:
  
 ARTICLE I
 CERTAIN DEFINITIONS
  
 Section 1.1 DEFINED TERMS. As used in this Agreement, the following terms shall have the following meanings specified or indicated (such meanings to be equally applicable to both the singular and plural forms of the terms defined):
  
 “Agreement” shall have the meaning specified in the preamble hereof.
  
 “Bankruptcy Law” means Title 11, U.S. Code, or any similar federal or state law for the relief of debtors.
  
 “Claim Notice” shall have the meaning specified in Section 9.3(a).
  
 “Closing” shall mean one of the closings of a purchase and sale of shares of Common Stock pursuant to Section 2.3.
  
 “Closing Certificate” shall mean the closing certificate of the Company in the form of Exhibit A hereto.
  
 “Closing Date” shall mean the date of any Closing hereunder.
  
 “Commitment Period” shall mean the period commencing on the Execution Date, and ending on the earlier of (i) the date on which the Investor shall have purchased Put Shares pursuant to this Agreement equal to the Maximum Commitment Amount, (ii) written notice of termination by the Company to the Investor, or (iii) the date that, pursuant to or within the meaning of any Bankruptcy Law, the Company commences a voluntary case or any Person commences a proceeding against the Company, a Custodian is appointed for the Company or for all or substantially all of its property or the Company makes a general assignment for the benefit of its creditors; provided, however, that the provisions of Articles III, IV, V, VI, IX and the agreements and covenants of the Company and the Investor set forth in Article X shall survive the termination of this Agreement.
  
 	 
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 “Common Stock” shall mean the Company’s common stock, $0.0001 par value per share, and any shares of any other class of common stock whether now or hereafter authorized, having the right to participate in the distribution of dividends (as and when declared) and assets (upon liquidation of the Company).
  
 “Common Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.
  
 “Company” shall have the meaning specified in the preamble to this Agreement.
  
 “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.
  
 “Damages” shall mean any loss, claim, damage, liability, cost and expense (including, without limitation, reasonable attorneys’ fees and disbursements and costs and expenses of expert witnesses and investigation).
  
 “Dispute Period” shall have the meaning specified in Section 9.3(a).
  
 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.
  
 “FINRA” shall mean the Financial Industry Regulatory Authority, Inc.
  
 “Investment Amount” shall mean the Put Shares referenced in the Put Notice multiplied by the Purchase Price.
  
 “Indemnified Party” shall have the meaning specified in Section 9.2.
  
 “Indemnifying Party” shall have the meaning specified in Section 9.2.
  
 “Indemnity Notice” shall have the meaning specified in Section 9.3(e).
  
 “Investor” shall have the meaning specified in the preamble to this Agreement.
  
 “Lien” means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.
  
 “Management Fee” shall mean two percent (2%) of the Purchase Price specified in each Put Notice.
  
 	 
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 “Material Adverse Effect” shall mean any effect on the business, operations, properties, or financial condition of the Company and the Subsidiaries that is material and adverse to the Company and the Subsidiaries and/or any condition, circumstance, or situation that would prohibit or otherwise materially interfere with the ability of the Company to enter into and perform its obligations under any Transaction Document.
  
 “Maximum Commitment Amount” shall mean Two Million Dollars ($2,000,000.00). The Company reserve the right to raise this amount at its discretion.
  
 “Person” shall mean an individual, a corporation, a partnership, an association, a trust or other entity or organization, including a government or political subdivision or an agency or instrumentality thereof.
  
 “Principal Market” shall mean any of the national exchanges (i.e. NYSE, NYSE AMEX, and Nasdaq), or principal quotation systems (i.e. OTCQX, OTCQB, and OTC Pink), or other principal exchange or recognized quotation system which is at the time the principal trading platform or market for the Common Stock.
  
 “Purchase Price” shall mean 90% of the VWAP on such date on which the Purchase Price is calculated in accordance with the terms and conditions of this Agreement.
  
 “Put” shall mean the right of the Investor to require the Company to sell shares of Common Stock, subject to the terms and conditions of this Agreement.
  
 “Put Date” shall mean any Trading Day during the Commitment Period that a Put Notice is deemed delivered pursuant to Section 2.2(b).
  
 “Put Notice” shall mean a written notice, substantially in the form of Exhibit B hereto, delivered from the Investor to the Company setting forth the amount of Put Shares which the Investor requires the Company to issue to the Investor in accordance with the terms and conditions of this Agreement.
  
 “Put Shares” shall mean all shares of Common Stock issued, or that the Company shall be required to issue, per any applicable Put Notice in accordance with the terms and conditions of this Agreement.
  
 “Regulation D” shall mean Regulation D promulgated under the Securities Act.
  
 “Rule 144” shall mean Rule 144 under the Securities Act or any similar provision then in force under the Securities Act.
  
 “SEC” shall mean the United States Securities and Exchange Commission.
  
 	 
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 “SEC Documents” shall have the meaning specified in Section 4.5.
  
 “Securities” means, collectively, the Put Shares, Warrant, and Warrant Shares.
  
 “Securities Act” shall mean the Securities Act of 1933, as amended.
  
 ”Short Sales” shall mean all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act.
  
 “Subsidiary” means any Person the Company wholly-owns or controls, or in which the Company, directly or indirectly, owns a majority of the voting stock or similar voting interest, in each case that would be disclosable pursuant to Item 601(b)(21) of Regulation S-K promulgated under the Securities Act.
  
 “Third Party Claim” shall have the meaning specified in Section 9.3(a).
  
 “Trading Day” shall mean a day on which the Principal Market shall be open for business.
  
 “Transaction Documents” shall mean this Agreement and the Warrant Agreement of even date, and exhibits hereto and thereto.
  
 “Transfer Agent” shall mean VStock Transfer, LLC, located atn18 Lafayette Place, Woodmere, NY 11598, the current transfer agent of the Company, and any successor transfer agent of the Company.
  
 “VWAP” shall mean the volume weighted average trading price of the Common Stock on the Principal Market during the thirty (30) Trading Days immediately preceding the respective Put Date.
  
 “Warrant” shall mean that certain common stock purchase warrant for the purchase of shares of the Company’s common stock which shall be issued to Investor on the date of this Agreement, substantially in the form of Exhibit C hereto.
  
 “Warrant Shares” shall mean all of the shares of the Common Stock underlying the Warrant.
  
 ARTICLE II
 PURCHASE AND SALE OF COMMON STOCK
  
 Section 2.1 PUTS. Upon the terms and conditions set forth herein (including, without limitation, the provisions of Article VII), the Investor shall have the right, but not the obligation, to direct the Company, by its delivery to the Company of a Put Notice from time to time, to issue and sell to the Investor Put Shares (i) in a minimum aggregate purchase price of not less than $200,000 per Put Notice and (ii) in a maximum amount up to the Maximum Commitment Amount.
  
 	 
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 Notwithstanding the foregoing, the Investor shall be obligated to deliver to the Investor a Put Notice no later than the tenth Trading Day after the Execution Date.
  
 Section 2.2 MECHANICS.
  
 (a) PUT NOTICE. At any time and from time to time during the Commitment Period, except as provided in this Agreement, the Investor may deliver a Put Notice to the Company, subject to satisfaction of the conditions provided herein. 
  
 (b) DATE OF DELIVERY OF PUT NOTICE. A Put Notice shall be deemed delivered on (i) the Trading Day it is received by email by the Company if such notice is received on or prior to 9:00 a.m. EST or (ii) the immediately succeeding Trading Day if it is received by email after 9:00 a.m. EST on a Trading Day or at any time on a day which is not a Trading Day. 
  
 Section 2.3 CLOSINGS. The Closing of a Put shall occur within one (1) Trading Day following the delivery of a Put Notice in accordance with Section 2.2(b), whereby (i) the Investor shall deliver, by wire transfer of immediately available funds to an account designated by the Company, the Investment Amount minus the applicable Management Fee, and (ii) upon receipt thereof, the Company shall instruct its Transfer Agent to issue and deliver the Put Shares to the Investor. 
  
 ARTICLE III
 REPRESENTATIONS AND WARRANTIES OF INVESTOR
  
 The Investor represents and warrants to the Company that:
  
 Section 3.1 INTENT. The Investor is entering into this Agreement for its own account and the Investor has no present arrangement (whether or not legally binding) at any time to sell the Securities to or through any Person in violation of the Securities Act or any applicable state securities laws; provided, however, that the Investor reserves the right to dispose of the Securities at any time in accordance with federal and state securities laws applicable to such disposition.
  
 Section 3.2 NO LEGAL ADVICE FROM THE COMPANY. The Investor acknowledges that it has had the opportunity to review this Agreement and the transactions contemplated by this Agreement with its own legal counsel and investment and tax advisors. The Investor is relying solely on such counsel and advisors and not on any statements or representations of the Company or any of its representatives or agents for legal, tax or investment advice with respect to this investment, the transactions contemplated by this Agreement or the securities laws of any jurisdiction.
  
 Section 3.3 ACCREDITED INVESTOR. The Investor is an accredited investor as defined in Rule 501(a)(3) of Regulation D, and the Investor has such experience in business and financial matters that it is capable of evaluating the merits and risks of an investment in the Securities. The Investor acknowledges that an investment in the Securities is speculative and involves a high degree of risk.
  
 	 
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 Section 3.4 AUTHORITY. The Investor has the requisite power and authority to enter into and perform its obligations under this Agreement and the other Transaction Documents and to consummate the transactions contemplated hereby and thereby. The execution and delivery of this Agreement and the other Transaction Documents and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action and no further consent or authorization of the Investor is required. Each Transaction Document to which it is a party has been duly executed by the Investor, and when delivered by the Investor in accordance with the terms hereof, will constitute the valid and binding obligation of the Investor enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies or by other equitable principles of general application.
  
 Section 3.5 NOT AN AFFILIATE. The Investor is not an officer, director or “affiliate” (as that term is defined in Rule 405 of the Securities Act) of the Company.
  
 Section 3.6 ORGANIZATION AND STANDING. The Investor is an entity duly incorporated or formed, validly existing and in good standing under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability company or similar power and authority to enter into and to consummate the transactions contemplated by this Agreement and the other Transaction Documents.
  
 Section 3.7 ABSENCE OF CONFLICTS. The execution and delivery of this Agreement and the other Transaction Documents, and the consummation of the transactions contemplated hereby and thereby and compliance with the requirements hereof and thereof, will not (a) violate any law, rule, regulation, order, writ, judgment, injunction, decree or award binding on the Investor, (b) violate any provision of any indenture, instrument or agreement to which the Investor is a party or is subject, or by which the Investor or any of its assets is bound, or conflict with or constitute a material default thereunder, (c) result in the creation or imposition of any lien pursuant to the terms of any such indenture, instrument or agreement, or constitute a breach of any fiduciary duty owed by the Investor to any third party, or (d) require the approval of any third-party (that has not been obtained) pursuant to any material contract, instrument, agreement, relationship or legal obligation to which the Investor is subject or to which any of its assets, operations or management may be subject.
  
 Section 3.8 DISCLOSURE; ACCESS TO INFORMATION. The Investor had an opportunity to review copies of the SEC Documents filed on behalf of the Company and has had access to all publicly available information with respect to the Company.
  
 Section 3.9 MANNER OF SALE. At no time was the Investor presented with or solicited by or through any leaflet, public promotional meeting, television advertisement or any other form of general solicitation or advertising.
  
 	 
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 Section 3.10 RULE 144 INAPPLICABLE. The Investor has been advised that Rule 144, which permits certain limited sales of unregistered securities, is not presently available with respect to the Put Shares and, in any event, requires that the Put Shares be held for a minimum of six (6) months, and in certain cases one (1) year, after they have been purchased and paid for (within the meaning of Rule 144). The Investor further understands and acknowledges that Rule 144 may indefinitely restrict transfer of the Put Shares in the event that the Investor is deemed an “affiliate” of the Company or if “current public information” about the Company (as defined in Rule 144) is not publicly available. 
   
 ARTICLE IV
 REPRESENTATIONS AND WARRANTIES OF THE COMPANY
  
 The Company represents and warrants to the Investor that:
  
 Section 4.1 ORGANIZATION OF THE COMPANY. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could not have or reasonably be expected to result in a Material Adverse Effect and no proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.
  
 Section 4.2 AUTHORITY. The Company has the requisite corporate power and authority to enter into and perform its obligations under the Transaction Documents. The execution and delivery of this Agreement and the other Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate action and no further consent or authorization of the Company or its Board of Directors or stockholders is required. Each of this Agreement and the other Transaction Documents has been duly executed and delivered by the Company and constitutes a valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies or by other equitable principles of general application.
  
 Section 4.3 CAPITALIZATION. Except as set forth in the SEC Documents, the Company has not issued any capital stock since its most recently filed periodic report under the Exchange Act, other than pursuant to the exercise of employee stock options under the Company’s stock option plans, the issuance of shares of Common Stock to employees pursuant to the Company’s employee stock purchase plans and pursuant to the conversion and/or exercise of Common Stock Equivalents outstanding as of the date of the most recently filed periodic report under the Exchange Act. No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents. Except as set forth in the SEC Documents and except as a result of the purchase and sale of the Securities, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents. The issuance and sale of the Securities will not obligate the Company to issue shares of Common Stock or other securities to any Person (other than the Investor) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities. There are no stockholders agreements, voting agreements or other similar agreements with respect to the Company’s capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s stockholders.
  
 	 
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 Section 4.4 LISTING AND MAINTENANCE REQUIREMENTS. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act nor has the Company received any notification that the SEC is contemplating terminating such registration. The Company has not, in the twelve (12) months preceding the date hereof, received notice from the Principal Market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing or maintenance requirements of such Principal Market. The Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements.
  
 Section 4.5 SEC DOCUMENTS; DISCLOSURE. The Company has filed all reports, schedules, forms, statements and other documents required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the one (1) year preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the “SEC Documents”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Documents prior to the expiration of any such extension. As of their respective dates, the SEC Documents complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and other federal laws, rules and regulations applicable to such SEC Documents, and none of the SEC Documents when filed contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The financial statements of the Company included in the SEC Documents comply as to form and substance in all material respects with applicable accounting requirements and the published rules and regulations of the SEC or other applicable rules and regulations with respect thereto. Such financial statements have been prepared in accordance with generally accepted accounting principles applied on a consistent basis during the periods involved (except (a) as may be otherwise indicated in such financial statements or the notes thereto or (b) in the case of unaudited interim statements, to the extent they may not include footnotes or may be condensed or summary statements) and fairly present in all material respects the financial position of the Company as of the dates thereof and the results of operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments). Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company confirms that neither it nor any other Person acting on its behalf has provided the Investor or its agents or counsel with any information that it believes constitutes or might constitute material, non-public information. The Company understands and confirms that the Investor will rely on the foregoing representation in effecting transactions in securities of the Company.
  
 	 
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 Section 4.6 VALID ISSUANCES. The Securities are duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid, and non-assessable, free and clear of all Liens other than pursuant to applicable federal and state securities laws.
  
 Section 4.7 NO CONFLICTS. The execution, delivery and performance of this Agreement and the other Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby, including, without limitation, the issuance of the Put Shares, Warrant, and the Warrant Shares, do not and will not: (a) result in a violation of the Company’s or any Subsidiary’s certificate or articles of incorporation, by-laws or other organizational or charter documents, (b) conflict with, or constitute a material default (or an event that with notice or lapse of time or both would become a material default) under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture, instrument or any “lock-up” or similar provision of any underwriting or similar agreement to which the Company or any Subsidiary is a party, or (c) result in a violation of any federal, state or local law, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations) applicable to the Company or any Subsidiary or by which any property or asset of the Company or any Subsidiary is bound or affected (except for such conflicts, defaults, terminations, amendments, accelerations, cancellations and violations as would not, individually or in the aggregate, have a Material Adverse Effect) nor is the Company otherwise in violation of, conflict with or in default under any of the foregoing. The business of the Company is not being conducted in violation of any law, ordinance or regulation of any governmental entity, except for possible violations that either singly or in the aggregate do not and will not have a Material Adverse Effect. The Company is not required under federal, state or local law, rule or regulation to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental agency in order for it to execute, deliver or perform any of its obligations under this Agreement or the other Transaction Documents (other than any SEC, FINRA or state securities filings that may be required to be made by the Company subsequent to any Closing or any registration statement that may be filed pursuant hereto); provided that, for purposes of the representation made in this sentence, the Company is assuming and relying upon the accuracy of the relevant representations and agreements of Investor herein.
  
 	 
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 Section 4.8 NO MATERIAL ADVERSE CHANGE. No event has occurred that would have a Material Adverse Effect on the Company that has not been disclosed in subsequent SEC Documents.
   
 Section 4.9 LITIGATION AND OTHER PROCEEDINGS. Except as disclosed in the SEC Documents, there are no actions, suits, investigations, inquiries or proceedings pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties, nor has the Company received any written or oral notice of any such action, suit, proceeding, inquiry or investigation, which would have a Material Adverse Effect. No judgment, order, writ, injunction or decree or award has been issued by or, to the knowledge of the Company, requested of any court, arbitrator or governmental agency which would have a Material Adverse Effect. There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the SEC involving the Company, any Subsidiary or any current or former director or officer of the Company or any Subsidiary.
  
 Section 4.10 REGISTRATION RIGHTS. Except as set forth in the SEC Documents, no Person has any right to cause the Company to effect the registration under the Securities Act of any securities of the Company or any Subsidiary.
  
 Section 4.11 NO SOLICITATION; NO BROKERS. The Company has taken no action which would give rise to any claim by any person for brokerage commissions, transaction fees or similar payments relating to this Agreement or the transactions contemplated hereby. The Company acknowledges and agrees that neither the Investor nor its employee(s), member(s), beneficial owner(s), or partner(s), in their capacities of such position with respect to the Investor, solicited the Company to enter into this Agreement and consummate the transactions described in this Agreement.
  
 ARTICLE V
 COVENANTS OF INVESTOR
  
  Section 5.1 COMPLIANCE WITH LAW; TRADING IN SECURITIES. The Investor’s trading activities with respect to shares of Common Stock will be in compliance with all applicable state and federal securities laws and regulations and the rules and regulations of FINRA and the Principal Market.
  
 Section 5.2 SHORT SALES AND CONFIDENTIALITY. Neither the Investor, nor any affiliate of the Investor acting on its behalf or pursuant to any understanding with it, will execute any Short Sales during the period from the date hereof to the end of the Commitment Period. For the purposes hereof, and in accordance with Regulation SHO, the sale after delivery of a Put Notice of such number of shares of Common Stock reasonably expected to be purchased under a Put Notice shall not be deemed a Short Sale. The Investor shall, until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company in accordance with the terms of this Agreement, maintain the confidentiality of the existence and terms of this transaction and the information included in the Transaction Documents.
  
 	 
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 ARTICLE VI
 COVENANTS OF THE COMPANY
  
 Section 6.1 FILING OF CURRENT REPORT. The Company agrees that it shall file a Current Report on Form 8-K, including the Transaction Documents as exhibits thereto, with the SEC within the time required by the Exchange Act, relating to the transactions contemplated by, and describing the material terms and conditions of, the Transaction Documents (the “Current Report”). The Company shall permit the Investor to review and comment upon the final pre-filing draft version of the Current Report at least one (1) Trading Day prior to its filing with the SEC, and the Company shall give reasonable consideration to all such comments. The Investor shall use its reasonable best efforts to comment upon the final pre-filing draft version of the Current Report within one (1) Trading Day from the date the Investor receives it from the Company. 
  
  ARTICLE VII
 CONDITIONS TO DELIVERY OF
 PUT NOTICES AND CONDITIONS TO CLOSING
  
 Section 7.1 CONDITIONS PRECEDENT TO THE OBLIGATION OF THE COMPANY TO ISSUE AND SELL PUT SHARES. In addition to the other provisions of this Agreement, the obligation of the Company to issue and sell the Put Shares to the Investor is subject to the satisfaction of each of the conditions set forth below:
  
 (a) ACCURACY OF INVESTOR’S REPRESENTATIONS AND WARRANTIES. The representations and warranties of the Investor shall be true and correct in all respects as of the date of this Agreement and as of the date of each Closing as though made at each such time.
  
 (b) PERFORMANCE BY INVESTOR. Investor shall have performed, satisfied and complied in all respects with all covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Investor at or prior to such Closing.
  
 (c) AUTHORIZED SHARES. The Company shall not issue any Put Shares or any Warrant Shares, and the Investor shall not have the right to receive any such Shares, if the issuance of such Put Shares and/or Warrant Shares would exceed the aggregate number of shares of Common Stock which the Company is authorized to issue.
  
 (d) MINIMUM PRICING. Notwithstanding anything contained herein to the contrary, the Company shall not be obligated to issue and sell the Investor Put Shares if the VWAP with respect to a Put Notice is less than $0.01 per share.
  
 Section 7.2 CONDITIONS PRECEDENT TO THE RIGHT OF INVESTOR TO PURCHASE PUT SHARES. The right of the Investor hereunder to purchase Put Shares is subject to the satisfaction of each of the following conditions:
  
 (a) ACCURACY OF THE COMPANY’S REPRESENTATIONS AND WARRANTIES. The representations and warranties of the Company shall be true and correct in all material respects as of the date of this Agreement and as of the date of each Closing (except for representations and warranties specifically made as of a particular date).
  
 	 
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 (b) PERFORMANCE BY THE COMPANY. The Company shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Company.
  
 (c) NO INJUNCTION. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or adopted by any court or governmental authority of competent jurisdiction that prohibits or directly and materially adversely affects any of the transactions contemplated by the Transaction Documents, and no proceeding shall have been commenced that may have the effect of prohibiting or materially adversely affecting any of the transactions contemplated by the Transaction Documents.
  
 (d) ADVERSE CHANGES. Since the date of filing of the Company’s most recent SEC Document, no event that had or is reasonably likely to have a Material Adverse Effect has occurred.
  
 (e) NO SUSPENSION OF TRADING IN OR DELISTING OF COMMON STOCK. The trading of the Common Stock shall not have been suspended by the SEC, the Principal Market or FINRA, or otherwise halted for any reason, and the Common Stock shall have been approved for listing or quotation on and shall not have been delisted from the Principal Market. In the event of a suspension, delisting, or halting for any reason, of the trading of the Common Stock, as contemplated by this Section 7.2(e), the Investor shall have the right to return to the Company any remaining amount of Put Shares associated with such Put, and the Purchase Price with respect to such Put shall be reduced accordingly.
  
 (f) OFFICER’S CERTIFICATE. On the date of delivery of each Put Notice, the Investor shall have received the Closing Certificate executed by an executive officer of the Company and to the effect that all the conditions to such Closing shall have been satisfied as of the date of each such certificate.
  
 (g) SEC DOCUMENTS. All reports, schedules, registrations, forms, statements, information and other documents required to have been filed by the Company with the SEC pursuant to the reporting requirements of the Exchange Act shall have been filed with the SEC within the applicable time periods prescribed for such filings under the Exchange Act.
  
 (h) BANKRUPTCY. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for relief under any bankruptcy law or any law for the relief of debtors shall not be instituted by or against the Company or any subsidiary of the Company (the “Bankruptcy Proceedings”), and the Company shall have no knowledge of any event more likely than not to have the effect of causing Bankruptcy Proceedings to arise. In the event of Bankruptcy Proceedings as contemplated by this Section 7.2(h), the Investor shall have the right to return to the Company any remaining amount of Put Shares associated with such Put, and the Purchase Price and Investment Amount with respect to such Put shall be reduced accordingly.
  
 	 
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 ARTICLE VIII
 LEGENDS
  
 Section 8.1 RESTRICTIVE STOCK LEGEND. The Investor agrees and acknowledges that a restrictive stock legend shall be placed on the share certificates representing the Put Shares.
  
 Section 8.2 INVESTOR’S COMPLIANCE. Nothing in this Article VIII shall affect in any way the Investor’s obligations hereunder to comply with all applicable securities laws upon the sale of the Common Stock.
  
 ARTICLE IX
 NOTICES; INDEMNIFICATION
  
 Section 9.1 NOTICES. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (a) personally served, (b) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (c) delivered by reputable air courier service with charges prepaid, or (d) transmitted by hand delivery, telegram, or email as a PDF, addressed as set forth below or to such other address as such party shall have specified most recently by written notice given in accordance herewith. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (i) upon hand delivery or delivery by email at the address designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (ii) on the second business day following the date of mailing by express courier service or on the fifth business day after deposited in the mail, in each case, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.
  
 The addresses for such communications shall be:
  
 If to the Company:
  
 Vemanti Group, Inc.
 7545 Irvine Center Dr., Ste 200
 Irvine, CA 92618
 E-mail: ____________
  
 If to the Investor:
  
 Alpha Sigma Capital Fund, LP
 1216 Hermosa Avenue, Suite A
 Hermosa Beach, CA 90254
 E-mail: evilliani@aplhasigma.fund
  
 	 
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 Either party hereto may from time to time change its address or email for notices under this Section 9.1 by giving at least ten (10) days’ prior written notice of such changed address to the other party hereto.
  
 Section 9.2 INDEMNIFICATION. Each party (an “Indemnifying Party”) agrees to indemnify and hold harmless the other party along with its officers, directors, employees, and authorized agents, and each Person or entity, if any, who controls such party within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (an “Indemnified Party”) from and against any Damages, joint or several, and any action in respect thereof to which the Indemnified Party becomes subject to, resulting from, arising out of or relating to (i) any misrepresentation, breach of warranty or nonfulfillment of or failure to perform any covenant or agreement on the part of the Indemnifying Party contained in the Transaction Documents, (ii) any untrue statement or alleged untrue statement of a material fact contained in the Transaction Documents, or (iii) any violation or alleged violation by the Indemnifying Party of the Securities Act, the Exchange Act, any state securities law or any rule or regulation under the Securities Act, the Exchange Act or any state securities law, as such Damages are incurred, except to the extent such Damages result primarily from the Indemnified Party’s failure to perform any covenant or agreement contained in this Agreement or the Indemnified Party’s negligence, recklessness or bad faith in performing its obligations under this Agreement.
  
 Section 9.3 METHOD OF ASSERTING INDEMNIFICATION CLAIMS. All claims for indemnification by any Indemnified Party under Section 9.2 shall be asserted and resolved as follows:
  
 (a) In the event any claim or demand in respect of which an Indemnified Party might seek indemnity under Section 9.2 is asserted against or sought to be collected from such Indemnified Party by a Person other than a party hereto or an affiliate thereof (a “Third Party Claim”), the Indemnified Party shall deliver a written notification, enclosing a copy of all papers served, if any, and specifying the nature of and basis for such Third Party Claim and for the Indemnified Party’s claim for indemnification that is being asserted under any provision of Section 9.2 against an Indemnifying Party, together with the amount or, if not then reasonably ascertainable, the estimated amount, determined in good faith, of such Third Party Claim (a “Claim Notice”) with reasonable promptness to the Indemnifying Party. If the Indemnified Party fails to provide the Claim Notice with reasonable promptness after the Indemnified Party receives notice of such Third Party Claim, the Indemnifying Party shall not be obligated to indemnify the Indemnified Party with respect to such Third Party Claim to the extent that the Indemnifying Party’s ability to defend has been prejudiced by such failure of the Indemnified Party. The Indemnifying Party shall notify the Indemnified Party as soon as practicable within the period ending thirty (30) calendar days following receipt by the Indemnifying Party of either a Claim Notice or an Indemnity Notice (as defined below) (the “Dispute Period”) whether the Indemnifying Party disputes its liability or the amount of its liability to the Indemnified Party under Section 9.2 and whether the Indemnifying Party desires, at its sole cost and expense, to defend the Indemnified Party against such Third Party Claim.
  
 	 
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 (i) If the Indemnifying Party notifies the Indemnified Party within the Dispute Period that the Indemnifying Party desires to defend the Indemnified Party with respect to the Third Party Claim pursuant to this Section 9.3(a), then the Indemnifying Party shall have the right to defend, with counsel reasonably satisfactory to the Indemnified Party, at the sole cost and expense of the Indemnifying Party, such Third Party Claim by all appropriate proceedings, which proceedings shall be vigorously and diligently prosecuted by the Indemnifying Party to a final conclusion or will be settled at the discretion of the Indemnifying Party (but only with the consent of the Indemnified Party in the case of any settlement that provides for any relief other than the payment of monetary damages or that provides for the payment of monetary damages as to which the Indemnified Party shall not be indemnified in full pursuant to Section 9.2). The Indemnifying Party shall have full control of such defense and proceedings, including any compromise or settlement thereof; provided, however, that the Indemnified Party may, at the sole cost and expense of the Indemnified Party, at any time prior to the Indemnifying Party’s delivery of the notice referred to in the first sentence of this clause (i), file any motion, answer or other pleadings or take any other action that the Indemnified Party reasonably believes to be necessary or appropriate to protect its interests; and provided, further, that if requested by the Indemnifying Party, the Indemnified Party will, at the sole cost and expense of the Indemnifying Party, provide reasonable cooperation to the Indemnifying Party in contesting any Third Party Claim that the Indemnifying Party elects to contest. The Indemnified Party may participate in, but not control, any defense or settlement of any Third Party Claim controlled by the Indemnifying Party pursuant to this clause (i), and except as provided in the preceding sentence, the Indemnified Party shall bear its own costs and expenses with respect to such participation. Notwithstanding the foregoing, the Indemnified Party may takeover the control of the defense or settlement of a Third Party Claim at any time if it irrevocably waives its right to indemnity under Section 9.2 with respect to such Third Party Claim.
  
 (ii) If the Indemnifying Party fails to notify the Indemnified Party within the Dispute Period that the Indemnifying Party desires to defend the Third Party Claim pursuant to Section 9.3(a), or if the Indemnifying Party gives such notice but fails to prosecute vigorously and diligently or settle the Third Party Claim, or if the Indemnifying Party fails to give any notice whatsoever within the Dispute Period, then the Indemnified Party shall have the right to defend, at the sole cost and expense of the Indemnifying Party, the Third Party Claim by all appropriate proceedings, which proceedings shall be prosecuted by the Indemnified Party in a reasonable manner and in good faith or will be settled at the discretion of the Indemnified Party(with the consent of the Indemnifying Party, which consent will not be unreasonably withheld). The Indemnified Party will have full control of such defense and proceedings, including any compromise or settlement thereof; provided, however, that if requested by the Indemnified Party, the Indemnifying Party will, at the sole cost and expense of the Indemnifying Party, provide reasonable cooperation to the Indemnified Party and its counsel in contesting any Third Party Claim which the Indemnified Party is contesting. Notwithstanding the foregoing provisions of this clause (ii), if the Indemnifying Party has notified the Indemnified Party within the Dispute Period that the Indemnifying Party disputes its liability or the amount of its liability hereunder to the Indemnified Party with respect to such Third Party Claim and if such dispute is resolved in favor of the Indemnifying Party in the manner provided in clause (iii) below, the Indemnifying Party will not be required to bear the costs and expenses of the Indemnified Party’s defense pursuant to this clause (ii) or of the Indemnifying Party’s participation therein at the Indemnified Party’s request, and the Indemnified Party shall reimburse the Indemnifying Party in full for all reasonable costs and expenses incurred by the Indemnifying Party in connection with such litigation. The Indemnifying Party may participate in, but not control, any defense or settlement controlled by the Indemnified Party pursuant to this clause (ii), and the Indemnifying Party shall bear its own costs and expenses with respect to such participation.
  
 	 
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 (iii) If the Indemnifying Party notifies the Indemnified Party that it does not dispute its liability or the amount of its liability to the Indemnified Party with respect to the Third Party Claim under Section 9.2 or fails to notify the Indemnified Party within the Dispute Period whether the Indemnifying Party disputes its liability or the amount of its liability to the Indemnified Party with respect to such Third Party Claim, the amount of Damages specified in the Claim Notice shall be conclusively deemed a liability of the Indemnifying Party under Section 9.2 and the Indemnifying Party shall pay the amount of such Damages to the Indemnified Party on demand. If the Indemnifying Party has timely disputed its liability or the amount of its liability with respect to such claim, the Indemnifying Party and the Indemnified Party shall proceed in good faith to negotiate a resolution of such dispute; provided, however, that if the dispute is not resolved within thirty (30) days after the Claim Notice, the Indemnifying Party shall be entitled to institute such legal action as it deems appropriate.
  
 (b) In the event any Indemnified Party should have a claim under Section 9.2 against the Indemnifying Party that does not involve a Third Party Claim, the Indemnified Party shall deliver a written notification of a claim for indemnity under Section 9.2 specifying the nature of and basis for such claim, together with the amount or, if not then reasonably ascertainable, the estimated amount, determined in good faith, of such claim (an “Indemnity Notice”) with reasonable promptness to the Indemnifying Party. The failure by any Indemnified Party to give the Indemnity Notice shall not impair such party’s rights hereunder except to the extent that the Indemnifying Party demonstrates that it has been irreparably prejudiced thereby. If the Indemnifying Party notifies the Indemnified Party that it does not dispute the claim or the amount of the claim described in such Indemnity Notice or fails to notify the Indemnified Party within the Dispute Period whether the Indemnifying Party disputes the claim or the amount of the claim described in such Indemnity Notice, the amount of Damages specified in the Indemnity Notice will be conclusively deemed a liability of the Indemnifying Party under Section 9.2 and the Indemnifying Party shall pay the amount of such Damages to the Indemnified Party on demand. If the Indemnifying Party has timely disputed its liability or the amount of its liability with respect to such claim, the Indemnifying Party and the Indemnified Party shall proceed in good faith to negotiate a resolution of such dispute; provided, however, that if the dispute is not resolved within thirty (30) days after the Claim Notice, the Indemnifying Party shall be entitled to institute such legal action as it deems appropriate. 
  
 (c) The Indemnifying Party agrees to pay the Indemnified Party, promptly as such expenses are incurred and are due and payable, for any reasonable legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim.
  
 (d) The indemnity provisions contained herein shall be in addition to (i) any cause of action or similar rights of the Indemnified Party against the Indemnifying Party or others, and (ii) any liabilities the Indemnifying Party may be subject to.
  
 	 
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 ARTICLE X
 MISCELLANEOUS
  
 Section 10.1 GOVERNING LAW; JURISDICTION. This Agreement shall be governed by and interpreted in accordance with the laws of the State of California without regard to the principles of conflicts of law. Each of the Company and the Investor hereby submits to the exclusive jurisdiction of the United States federal located in Irvine, California and state courts located in Orange County, California, with respect to any dispute arising under the Transaction Documents or the transactions contemplated thereby.
  
 Section 10.2 ASSIGNMENT. This Agreement shall be binding upon and inure to the benefit of the Company and the Investor and their respective successors. Neither this Agreement nor any rights of the Investor or the Company hereunder may be assigned by either party to any other Person.
  
 Section 10.3 NO THIRD PARTY BENEFICIARIES. This Agreement is intended for the benefit of the Company and the Investor and their respective successors, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as set forth in Section 9.3.
  
 Section 10.4 TERMINATION. The Company may terminate this Agreement at any time by written notice to the Investor. In addition, this Agreement shall automatically terminate at the end of the Commitment Period. Notwithstanding anything in this Agreement to the contrary, the provisions of Articles III, IV, VI, IX of this Agreement and the agreements and covenants of the Company and the Investor set forth in Article X of this Agreement shall survive the termination of this Agreement.
  
 Section 10.5 ENTIRE AGREEMENT. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the Company and the Investor with respect to the matters covered herein and therein and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.
  
 Section 10.6 FEES AND EXPENSES. Each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all Transfer Agent fees (including, without limitation, any fees required for same-day processing of any instruction letter delivered by the Company), stamp taxes and other taxes and duties levied in connection with the delivery of any Securities to the Investor.
  
 	 
	17
	

	 

  
 Section 10.7 COUNTERPARTS. This Agreement may be executed in multiple counterparts, each of which may be executed by less than all of the parties and shall be deemed to be an original instrument which shall be enforceable against the parties actually executing such counterparts and all of which together shall constitute one and the same instrument. This Agreement may be delivered to the other parties hereto by email of a copy of this Agreement bearing the signature of the parties so delivering this Agreement.
   
 Section 10.8 SEVERABILITY. In the event that any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision; provided that such severability shall be ineffective if it materially changes the economic benefit of this Agreement to any party.
  
 Section 10.9 FURTHER ASSURANCES. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.
  
 Section 10.10 NO STRICT CONSTRUCTION. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.
  
 Section 10.11 EQUITABLE RELIEF. The Company recognizes that in the event that it fails to perform, observe, or discharge any or all of its obligations under this Agreement, any remedy at law may prove to be inadequate relief to the Investor. The Company therefore agrees that the Investor shall be entitled to temporary and permanent injunctive relief in any such case without the necessity of proving actual damages.
  
 Section 10.12 TITLE AND SUBTITLES. The titles and subtitles used in this Agreement are used for the convenience of reference and are not to be considered in construing or interpreting this Agreement.
  
 Section 10.13 AMENDMENTS; WAIVERS. No provision of this Agreement may be amended other than by a written instrument signed by both parties hereto and no provision of this Agreement may be waived other than in a written instrument signed by the party against whom enforcement of such waiver is sought. No failure or delay in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege.
  
 Section 10.14 PUBLICITY. The Company and the Investor shall consult with each other in issuing any press releases or otherwise making public statements with respect to the transactions contemplated hereby and no party shall issue any such press release or otherwise make any such public statement, other than as required by law, without the prior written consent of the other parties, which consent shall not be unreasonably withheld or delayed, except that no prior consent shall be required if such disclosure is required by law, in which such case the disclosing party shall provide the other party with prior notice of such public statement. The Investor acknowledges that this Agreement and all or part of the Transaction Documents may be deemed to be “material contracts,” as that term is defined by Item 601(b)(10) of Regulation S-K, and that the Company may therefore be required to file such documents as exhibits to reports or registration statements filed under the Securities Act or the Exchange Act. The Investor further agrees that the status of such documents and materials as material contracts shall be determined solely by the Company, in consultation with its counsel.
  
 [Signature Page Follows]
  
 	 
	18
	

	 

  
  
 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed by their respective officers thereunto duly authorized as of the day and year first above written.
  
 	  
	 THE COMPANY:
	  

	  
	  
	  

	 	 VEMANTI GROUP, INC.
	
	 	 	 	 
		By:	/s/ Tan Tran	
	  
	 Name: 
	Tan Tran	 
	 	Title: 	Chief Executive Officer	 
	 	 	 	 
	  
	 INVESTOR:
	  

	  
	  
	  

	  
	 ALPHA SIGMA CAPITAL
	  

	  
	  
	  
	  

	  
	 By: 
	 /s/ Enzo Villani
	  

	  
	 Name:
	 Enzo Villani
	  

	  
	 Title: 
	 Managing Partner
	  

   
 	 
	19
	

	 

  
 EXHIBIT A
  
 FORM OF OFFICER’S CERTIFICATE
 OF VEMANTI GROUP, INC.
  
 Pursuant to Section 7.2(f) of that certain standby equity commitment agreement, dated March __, 2022 (the “Agreement”), by and between Vemanti Group, Inc. (the “Company”) and Alpha Sigma Capital ___ (the “Investor”), the undersigned, in his capacity as Chief Executive Officer of the Company, and not in his individual capacity, hereby certifies, as of the date hereof (such date, the “Condition Satisfaction Date”), the following:
  
 1. The representations and warranties of the Company are true and correct in all material respects as of the Condition Satisfaction Date as though made on the Condition Satisfaction Date (except for representations and warranties specifically made as of a particular date) with respect to all periods, and as to all events and circumstances occurring or existing to and including the Condition Satisfaction Date, except for any conditions which have temporarily caused any representations or warranties of the Company set forth in the Agreement to be incorrect and which have been corrected with no continuing impairment to the Company or the Investor; and
  
 2. All of the conditions precedent to the obligation of the Investor to purchase Put Shares set forth in the Agreement, including but not limited to Section 7.2 of the Agreement, have been satisfied as of the Condition Satisfaction Date.
  
 Capitalized terms used herein shall have the meanings set forth in the Agreement unless otherwise defined herein.
  
 IN WITNESS WHEREOF, the undersigned has hereunto affixed his hand as of the ________, 2022.
  
 	 	 VEMANTI GROUP, INC.
	
	 	 	 	 
		By:	/s/	
	  
	 Name:
		 
	 	Title:		 

  
 	 
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 EXHIBIT B
  
 FORM OF PUT NOTICE
  
 TO: VEMANTI GROUP, INC.
 DATE: ____________________
  
 We refer to the equity commitment agreement, dated March __, 2021 (the “Agreement”), entered into by and between Alpha Sigma Capital ___ and you. Capitalized terms defined in the Agreement shall, unless otherwise defined herein, have the same meaning when used herein.
  
 This letter shall constitute a Put Notice, requiring you to offer and sell us Put Shares pursuant to the Agreement. The per Share Purchase Price is $___, which is based on the VWAP of $___ for the 30 days prior to the date of this Put Notice. 
  
 	 	ALPHA SIGMA CAPITAL	
	 	 	 	 
		By:	 	
	  
	 Name: 
		 
	 	Title: 		 

  
 	 
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 EXHIBIT C
  
 See Warrant Agreement
  
 	 
	22Exhibit
4.7

 

MUSCLE
MAKER, INC.

 

2021
Equity Incentive Plan

 

1.
Purpose. The purpose of the Muscle Maker, Inc. 2021 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 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 repeated 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 or omission involving
fraud, embezzlement, misappropriation or dishonesty in connection with the Participant’s duties to the Company or Affiliate of
the Company or that is otherwise likely to be injurious to the business or reputation of the Company or its Affiliates; or (D) the Participant’s
conviction of, indictment for, or pleading guilty or nolo contendere to, any (x) felony or (y) other crime involving fraud or
moral turpitude. 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. If the timing of
payments provided under an Award Agreement is based on or triggered by a Change in Control then, to extent necessary to avoid violating
Section 409A, a Change in Control must also constitute a Change in Control Event as defined under Section 409A.

 

(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 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 Muscle Maker Inc., a Nevada corporation, together with its successors and assigns.

 

(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, in the case of a particular Award, unless the applicable Award Agreement states otherwise,
(i) “Disability” as defined in any employment or consulting agreement or similar document or policy in effect between the
Participant and the Company or an Affiliate or (ii) in the absence of any such employment or consulting agreement, document or policy
(or the absence of any definition of “Disability” contained therein), the inability of the Participant to perform the essential
functions of the Participant’s job by reason of a physical or mental infirmity, for a period of three (3) consecutive months or
for an aggregate of six (6) months in any twelve (12) consecutive month period. 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 Section 409A.

 

(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.

 

(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 Muscle Maker, Inc. 2021 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.

 

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

 

(pp)
“Section 409A” means Section 409A of the Code (together with all Treasury Regulations, guidance, compliance
programs, and other interpretative authority thereunder.

 

(qq)
“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.

 

(rr)
“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.

 

    	 

    	 

    

 

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

 

(tt)
“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.

 

(uu)
“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).

 

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

 

(ww)
“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 on , 2021, the date on which it is approved by the stockholders of the Company,
which date shall be within twelve (12) months before or after the date of the Plan’s adoption by the Board. The expiration date
of this Plan, on and after which date no Awards may be granted hereunder, shall be , 2031, 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.

 

(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; and (x) 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.

 

(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. No more than five percent (5%) of the aggregate number
of Common Shares available for issuance pursuant to Section 5(b) hereof may be granted pursuant to Awards that are eligible to vest prior
to the first anniversary of the Date of Grant. No Participant shall be eligible to receive or accrue dividends or dividend equivalent
rights with respect to the Common Shares subject to an unvested Award, including without limitation, an Award of Stock Appreciation Rights
or Restricted Stock Units.

 

(b)
Subject to Section 12 of this Plan, the Committee is authorized to deliver under this Plan an aggregate of 1,500,000 Common Shares.

 

(c)
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; (iii) shares subject to a Stock Appreciation Right that are not issued in connection with the stock settlement of
the SAR upon exercise thereof; and (iv) shares purchased in the open market using proceeds received upon the exercise of an Option.

 

    	 

    	 

    

 

(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.

 

(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 50% of the Available Shares in the aggregate or
(ii) payable in cash in an amount exceeding $10,000,000 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.
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)
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), or, with respect to an Incentive Stock Option, three (3) months following
such termination, but not later than the expiration of the Option Period;

 

(B)
for directors, officers and employees of the Company only, for six (6) months following termination of employment or service by reason
of such Participant’s Retirement, or, with respect to an Incentive Stock Option, three (3) months following such termination, but
not later than the expiration of the Option Period;

 

(C)
ninety (90) 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

 

(ii)
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.

 

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 federal, state, local and/or foreign income and employment taxes required to be 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.

 

(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)
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 six (6) months following termination of employment or service by reason
of such Participant’s Retirement, but not later than the expiration of the SAR Period;

 

(C)
ninety (90) 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

 

(ii)
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 federal, state, local and non-U.S. income and employment taxes required to be
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, that holders
of Restricted Stock may not vote or 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.

 

(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. No Participant shall have voting rights with respect to any Awards of Restricted
Stock. A Participant holding Restricted Stock granted hereunder shall not have the right to receive dividends on the Restricted Stock
during the Restriction Period. 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, 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).

 

(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, 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, 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 expiration of the Restricted Period 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 federal, state, local and non-U.S. income and employment taxes required to be withheld.

 

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.

 

(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. The Committee is authorized at any time during
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), or at any time thereafter to the extent the exercise of such authority at such time would not cause the
Performance Compensation Awards granted to any Participant for such Performance Period to fail to qualify as “performance-based
compensation” under Section 162(m) of the Code, in its sole discretion, to adjust or modify the calculation of a Performance Goal
for such Performance Period, based on and in order to appropriately reflect the following events: (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) extraordinary nonrecurring items as described in
Accounting Principles Board Opinion No. 30 (or any successor pronouncement thereto) and/or in management’s discussion and analysis
of financial condition and results of operations appearing in the Company’s annual report to stockholders for the applicable year;
(vi) acquisitions or divestitures; (vii) any other specific unusual or nonrecurring events, or objectively determinable category thereof;
(viii) foreign exchange gains and losses; and (ix) a change in the Company’s fiscal year.

 

    	 

    	 

    

 

(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.

 

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, 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). All adjustments shall be made in good faith compliance with Section 409A.

 

    	 

    	 

    

 

13.
Effect of Change in Control. Upon the occurrence of a Change in Control, unless otherwise specifically prohibited under applicable
laws or by the rules and regulations of any governing governmental agencies or national securities exchanges, or unless the Committee
shall specify otherwise in the Award Agreement, the Committee is authorized (but not obligated) to make any of the following adjustments
(or any combination thereof) in the terms and conditions of outstanding Awards: (a) continuation or assumption of such outstanding Awards
under the Plan by the Company (if it is the surviving company or corporation) or by the surviving company or corporation or its parent;
(b) substitution by the surviving company or corporation or its parent of equity, equity-based and/or cash awards with substantially
the same terms for outstanding Awards (excluding the security deliverable upon settlement of the Awards), including, in the case of Options,
substitution by the surviving company or corporation or its parent of restricted stock or other equity, which may be subject to substantially
the same vesting and/or forfeiture terms as such Options, in an amount equal to the intrinsic value of such Options; (c) accelerated
exercisability, vesting and/or lapse of restrictions under outstanding Awards immediately prior to the occurrence of such event; (d)
upon written notice, provide that any outstanding Awards must be exercised, to the extent then exercisable, during a reasonable period
of time immediately prior to the scheduled consummation of the event or such other period as determined by the Committee (contingent
upon the consummation of the event), and at the end of such period, such Awards shall terminate to the extent not so exercised within
the relevant period; and (e) cancellation of all or any portion of outstanding Awards for fair value (in the form of cash, Common Shares,
other property or any combination thereof) as determined in the sole discretion of the Committee and which value may be zero; provided,
that, in the case of Options and Stock Appreciation Rights or similar Awards, (x) such fair value may equal the excess, if any,
of the value of the consideration to be paid in the Change in Control transaction to holders of the same number of Common Shares subject
to such Awards (or, if no such consideration is paid, the Fair Market Value of the Common Shares subject to such outstanding Awards or
portion thereof being canceled) over the aggregate Exercise Price or Strike Price, as applicable, with respect to such Awards or the
portion thereof being canceled (or if no such excess, zero), and (y) to the extent that the Options, Stock Appreciation Rights or similar
Awards are not then vested, such excess may be paid in restricted stock or other equity, which may be subject to substantially the same
vesting and/or forfeiture terms as such Options, Stock Appreciation Rights or similar awards, in an amount equal to the intrinsic value
of such Options, Stock Appreciation Rights or similar 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.

 

(c)
Prohibition on Repricing. Subject to Section 5, the Committee shall not, without the approval of the stockholders of the
Company (i) reduce the exercise price, or cancel and reissue options so as to in effect reduce the exercise price or (ii) change the
manner of determining the exercise price so that the exercise price is less than the fair market value per share of Common Stock.

 

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.

 

(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 minimum required statutory withholding liability).

 

    	 

    	 

    

 

(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.

 

(f)
Designation and Change of Beneficiary. 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.

 

    	 

    	 

    

 

(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, 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.

 

(o)
Governing Law. The Plan shall be governed by and construed in accordance with the internal laws of the State of Nevada,
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. The Plan and all Awards granted under this Plan shall be administered, interpreted, and construed in a manner consistent
with Section 409A to the extent necessary to avoid the imposition of additional taxes under Section 409A(a)(1)(B) of the Code. In no
event shall the Company or any of its Affiliates be liable for any additional tax, interest or penalties that may be imposed on a Participant
under Section 409A or any damages for failing to comply with Section 409A. Notwithstanding any contrary provision in the Plan or Award
Agreement, any payment(s) of nonqualified deferred compensation (within the meaning of Section 409A) that are otherwise required to be
made under the Plan to a “specified employee” (within the meaning of Section 1.409A-1(i) of the Treasury Regulations) as
a result of his or her separation from service (other than a payment that is not subject to Section 409A) shall be delayed for the first
six months following such separation from service (or, if earlier, until the date of death of the specified employee) and shall instead
be paid (in a manner set forth in the Award Agreement) on the day that immediately follows the end of such six-month period or as soon
as administratively practicable thereafter. Any remaining payments of nonqualified deferred compensation shall be paid without delay
and at the time or times such payments are otherwise scheduled to be made. A termination of employment or service shall not be deemed
to have occurred for purposes of any provision of the Plan or any Award Agreement providing for the payment of any amounts or benefits
that are considered nonqualified deferred compensation under Section 409A upon or following a termination of employment or service, unless
such termination is also a “separation from service” within the meaning of Section 409A and the payment thereof prior to
a “separation from service” would violate Section 409A. For purposes of any such provision of the Plan or any Award Agreement
relating to any such payments or benefits, references to a “termination,” “termination of employment,” “termination
of service,” or like terms shall mean “separation from service.”

 

(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.

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