Document:

Exhibit 10.1

 

Cryoport, Inc.

2018 Omnibus Equity Incentive Plan

 

(as amended by the First Amendment and the Second
Amendment,

effective April 30, 2021)

 

ARTICLE 1

ESTABLISHMENT, PURPOSE, EFFECTIVE DATE, EXPIRATION DATE

 

1.1            Establishment;
Impact on Prior Plans. Cryoport, Inc. (the “Company”) hereby establishes the “Cryoport, Inc.
2018 Omnibus Equity Incentive Plan” (the “Plan”). The Plan will supersede and replace the Cryoport, Inc.
2015 Omnibus Equity Incentive Plan (the “2015 Plan”) and all other Prior Plans (as defined below). The 2015 Plan and
all other Prior Plans will remain in effect until all awards granted under the 2015 Plan and such Prior Plans have been exercised, forfeited,
cancelled, or have otherwise expired or terminated in accordance with the terms of such awards. No awards will be made pursuant the 2015
Plan or any other Prior Plan on or after the Effective Date (as defined below).

 

1.2            Purpose.
The purpose of the Plan is to promote the interests and long-term success of the Company and its stockholders by providing an incentive
to attract, retain and reward persons performing services to the Company or any of its Affiliates (as defined below) and by motivating
such persons to contribute to the continued growth and profitability of the Company and its Affiliates. The Plan seeks to achieve this
purpose by providing Awards in the form of Options, Stock Appreciation Rights, Restricted Stock Rights, Restricted Stock, Performance
Shares, Performance Share Units, Performance Cash Awards, Stock Grant Awards, and Stock Unit Awards.

 

1.3            Effective
Date. The Plan was adopted by the Company’s Board of Directors on March 28, 2018 and became effective on the date
it is approved by the Company’s stockholders at the Company’s 2018 Annual Meeting (the “Effective Date”).

 

1.4            Expiration
Date. The Plan will expire on, and no Award may be granted under the Plan after, the tenth (10th) anniversary
of the Effective Date. Any Awards that are outstanding on the tenth (10th) anniversary of the Effective Date shall remain
in effect according to the terms of the Plan and the applicable Award Agreement.

 

ARTICLE 2

DEFINITIONS

 

2.1            Definitions.
When a word or phrase appears in this Plan document with the initial letter capitalized, and the word or phrase does not commence a sentence,
the word or phrase will generally be given the meaning ascribed to it in this Section 2.1 unless a clearly different meaning is required
by the context. Except when otherwise indicated by the context, words in the masculine gender when used in this Plan document will include
the feminine gender, the singular includes the plural, and the plural includes the singular. For purposes of this Plan, the following
words and phrases will have the following meanings:

 

(a)            “Affiliate”
means: (i) any member of a “controlled group of corporations” (within the meaning of Section 414(b) of
the Code as modified by Section 415(h) of the Code) that includes the Company as a member of the group; and (ii) any member
of a group of trades or businesses under common control (within the meaning of Section 414(c) of the Code as modified by Section 415(h) of
the Code) that includes the Company as a member of the group. In applying Section 1563(a)(1), (2) and (3) of the Code for
purposes of determining the members of a controlled group of corporations under Section 414(b) of the Code, the language “at
least 50 percent” shall be used instead of “at least 80 percent” each place it appears in Section 1563(a)(1),
(2) and (3) and in applying Treasury Regulation Section 1.414(c)-2 for purposes of determining the members of a group
of trades or businesses (whether or not incorporated) that are under common control for purposes of Section 414(c) of the Code,
the language “at least 50 percent” shall be used instead of “at least 80 percent” each place it appears
in Treasury Regulation Section 1.414(c)-2.

 

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(b)            “Annual
Meeting” means the dates established for the annual meetings of the Company’s stockholders pursuant to the Company’s
Bylaws.

 

(c)            “Award”
means any Option, Stock Appreciation Right, Restricted Stock Right, Restricted Stock, Performance Share, Performance Share Unit, Performance
Cash, Stock Grant Award or Stock Unit Award granted pursuant to the Plan.

 

(d)            “Award
Agreement” means any written agreement, contract, or other instrument or document, including an electronic agreement or document,
evidencing an Award, regardless of whether the Participant’s signature or acknowledgement is required.

 

(e)            “Board”
means the Board of Directors of the Company, as constituted from time to time.

 

(f)            “Cause”
means, for purposes of termination of a Participant’s employment (or service), unless otherwise provided in an Award Agreement
or employment or similar agreement entered by and between the Participant and the Company or an Affiliate, any one of the following: (i) gross
and willful misconduct which results in material injury to the Company or an Affiliate; (ii) engaging in fraudulent conduct with
respect to the Company’s or any of its Affiliates’ business or conduct of a criminal nature that may have an adverse impact
on the Company’s or any of its Affiliates’ standing and reputation; (iii) the material failure or refusal of a Participant
to perform the duties required of the Participant by the Board (or the Participant’s supervisor), which inappropriate failure or
refusal is not cured within thirty (30) days following receipt, by Participant, of written notice from the Board (or the Participant’s
supervisor) specifying the factors or events constituting such failure or refusal; (iv) the use of drugs and/or alcohol in violation
of the Company’s or any Affiliates’ then current policies; or (vi) engaging in conduct that has resulted or could result
in significant reputational harm to the Company or any Affiliate.

 

(g)            “Change
in Control” means, unless otherwise provided in an Award Agreement or employment or similar agreement entered by and between
the Participant and the Company or any Affiliate, any one or more of the following events:

 

(i)            the
date that any one person, or more than one person acting as a group (as determined in accordance with Treasury Regulation Section 1.409A-3(i)(5)),
acquires ownership of stock of the Company that, together with stock held by such person or group, constitutes more than fifty percent
(50%) of the total fair market value or total voting power of the stock of the Company. If any one person or more than one person acting
as a group is considered to own more than fifty percent (50%) of the total fair market value or total voting power of the stock of the
Company, the acquisition of additional stock by the same person or persons will not be considered to be a “Change in Control.”
This clause (i) only applies when there is a transfer of stock of the Company (or issuance of stock of the Company) and stock in
the Company remains outstanding after the transaction;

 

(ii)            as
the result of, or in connection with, any cash tender or exchange offer, merger or other business combination, sale of assets or contested
election, or any combination of the foregoing transactions, less than a majority of the combined voting power of the then outstanding
securities of the Company or any successor corporation or entity entitled to vote generally in the election of the directors of the Company
or such other corporation or entity after such transaction are held in the aggregate by the holders of the Company’s securities
entitled to vote generally in the election of directors of the Company immediately prior to such transaction;

 

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(iii)            during
any period of two (2) consecutive years, individuals who at the beginning of any such period constitute the Board (the “Incumbent
Directors”) cease for any reason to constitute at least a majority thereof, unless the election, or the nomination for election
by the Company’s stockholders, of each director of the Company first elected during such period was approved by a vote of at least
two-thirds of the Incumbent Directors of the Company then still in office who were directors of the Company at the beginning of any such
period; provided, however, that no individual initially elected or nominated as a director of the Company
as a result of an actual or threatened election contest with respect to directors or as a result of any other actual or threatened solicitation
of proxies by or on behalf of any person other than the Board shall be deemed to be an Incumbent Director;

 

(iv)            the
date that any one person, or more than one person acting as a group (as determined in accordance with Treasury Regulation Section 1.409A-3(i)(5)),
acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets
from the Company that have a total gross fair market value equal to or more than forty percent (40%) of the total gross fair market value
of all of the assets of the Company immediately prior to such acquisition or acquisitions. For this purpose, “gross fair market
value” means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to
any liabilities associated with such assets; or

 

(v)            the
date that any person, or more than one person acting as a group (as determined in accordance with Treasury Regulation 1.409A-3(i)(5)),
acquires (or has acquired during the 12-month period ending on the most recent acquisition by such person or persons) ownership of stock
of Company possessing thirty percent (30%) or more of the total voting power of the stock of Company.

 

The transfer of stock or assets
of the Company in connection with a bankruptcy filing by or against the Company under Title 11 of the United States Code will not be considered
to be a “Change in Control” for purposes of this Plan. Additionally, a transaction shall not constitute a “Change in
Control” if its sole purpose is to change the state of the Company’s incorporation or to create a holding company that will
be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction.
Notwithstanding the foregoing, a “Change in Control” will not be deemed to have occurred until (i) any required regulatory
approval, including any final non-appealable regulatory order, has been obtained, and (ii) the transaction that would otherwise constitute
the “Change in Control” closes. Except as otherwise provided in an Award Agreement, a “Change in Control” shall
not occur in the case of an Award that is subject to the requirements of Section 409A of the Code unless such “Change in Control”
constitutes a “change in control event” as defined in Section 409A of the Code.

 

(h)            “Chief
Executive Officer” or “CEO” means the Chief Executive Officer of the Company.

 

(i)            “Code”
means the Internal Revenue Code of 1986, as amended. All references to the Code shall be interpreted to include a reference to any
applicable regulations, rulings or other official guidance promulgated pursuant to such section of the Code.

 

(j)            “Committee”
means the Compensation Committee or any such committee as may be designated by the Board to administer the Plan, the membership of
such committee not being less than two (2) members of the Board. Each Committee member must be: (i) a “non-employee director”
(as defined in Rule 16b-3 under the Exchange Act) if required to meet the conditions of exemption for the Awards under the Plan from
Section 16(b) of the Exchange Act; and (ii) “independent” for purposes of the applicable NASDAQ Listing Rules.

 

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(k)            “Company”
means Cryoport, Inc., or any successor as provided in Section 18.5.

 

(l)            “Consultant”
means a consultant or adviser who provides services to the Company or an Affiliate as an independent contractor and not as an employee;
provided, however, that a Consultant may become Participant this Plan only if he or she: (i) is a natural
person; (ii) provides bona fide services to the Company or an Affiliate; and (iii) provides services that are not in connection
with the offer or sale of the Company’s securities in a capital-raising transaction and do not promote or maintain a market for
the Company’s securities.

 

(m)            “Disability”
means the inability of a Participant to engage in any substantially gainful activity by reason of any medically determinable physical
or mental impairment that can be expected to result in death or which has lasted or can be expected to last for a continuous period of
not less than twelve (12) months. The permanence and degree of impairment shall be supported by medical evidence. In the case of
an Incentive Stock Option, the term “Disability” shall have the meaning ascribed to it in Section 22(e)(3) of the
Code.

 

(n)            “Effective
Date” means the date on which the stockholders of the Company approve the Plan as described in Section 1.3.

 

(o)            “ERISA”
means the Employee Retirement Income Security Act of 1974, as amended. All references to ERISA shall be interpreted to include a reference
to any applicable regulations, rulings or other official guidance promulgated pursuant to such section of ERISA.

 

(p)            “Exchange
Act” means the Securities Exchange Act of 1934, as amended. All references to the Exchange Act shall be interpreted to include
a reference to any applicable regulations, rulings or other official guidance promulgated pursuant to such section of the Exchange Act.

 

(q)            “Fair
Market Value” means the closing price of one share of Stock as reported on the NASDAQ or such other exchange on which the Stock
is then traded on the date such value is determined. If the Stock is not traded on such date, the fair market value is the price on the
first immediately preceding business day on which Stock was so traded.

 

(r)            “Good
Reason” means, for the purposes of termination of a Participant’s employment, unless otherwise provided in an Award Agreement
or employment or similar agreement entered by and between the Participant and the Company or any Affiliate, any of the following: (i) a
material, adverse change in the Participant’s authority, duties or responsibilities (including the assignment of duties materially
inconsistent with the Participant’s position); (ii) a material reduction in the Participant’s base salary; or (iii) the
Company’s decision to permanently relocate a Participant’s residence or the Company’s or an Affiliates’ principal
business office by more than sixty (60) miles from its then current location. However, none of the foregoing events or conditions will
constitute Good Reason unless the Participant provides the Company with written objection to the event or condition within thirty (30)
days following the occurrence thereof, the Company does not reverse or otherwise cure the event or condition within thirty (30) days of
receiving that written objection, and the participant resigns his or her employment within the (30) days following the expiration of that
cure period.

 

(s)            “Grant
Date” means the date the Committee approves the Award or a date in the future on which the Committee determines the Award will
become effective.

 

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(t)            “Incentive
Stock Option” means an Option that is intended to meet the requirements of Section 422 of the Code or any successor provision
thereto.

 

(u)            “Non-Employee
Director” means a member of the Board who, as of the Grant Date, is not an employee.

 

(v)            “Non-Qualified
Stock Option” means an Option that is not intended to be an Incentive Stock Option.

 

(w)            “Option”
means an Award granted pursuant to Article 6 to purchase Stock at a stated price for a specified period of time. An Option may
either be an Incentive Stock Option or a Non-Qualified Stock Option.

 

(x)            “Participant”
means an individual who, as an employee, officer or Non-Employee Director of, or Consultant to, the Company, or any Affiliate, has
been granted an Award under the Plan.

 

(y)            “Performance
Cash Award” means an Award granted pursuant to Article 8 evidencing the right to receive a payment in cash depending on
the satisfaction of one or more Performance Goals for a particular Performance Period as determined by the Committee.

 

(z)            “Performance
Criteria” means the criteria or any combination of criteria, that the Committee selects for purposes of establishing the Performance
Goal or Performance Goals for a Participant during a Performance Period. The Performance Criteria that will be used to establish Performance
Goals may (but need not) include: revenue; revenue growth; earnings (including earnings before interest, taxes, depreciation and amortization);
operating income; operating margin; pre- and after-tax income; cash flow (before and after dividends); cash flow per share (before and
after dividends); net earnings; earnings per share; return on equity; return on capital (including return on total capital or return on
invested capital); cash flow return on investment; return on assets or net assets; economic value added; share price performance; total
stockholder return; improvement in or attainment of expense levels; improvement in or attainment of working capital levels; market penetration;
geographic goals; business expansion goals; development of strategic relationships with customers and/or vendors; and development and
execution on strategic acquisitions. Any of the Performance Criteria may be measured either in absolute terms or as compared to any incremental
increase or as compared to results of a peer group, indices, or any other basket of companies. Financial Performance Criteria may, but
need not, be calculated in accordance with generally accepted accounting principles (“GAAP”) or any successor method
to GAAP, including International Financial Reporting Standards.

 

(aa)     “Performance
Goals” means the goal or goals established in writing by the Committee for a Performance Period based on the Performance Criteria.
Depending on the Performance Criteria used to establish Performance Goals, the Performance Goals may be expressed in terms of overall
Company performance, or the performance of a division, Affiliate, or an individual. The Performance Goals may be stated in terms of absolute
levels or relative to another company or companies or to an index or indices.

 

(bb)     “Performance
Period” means one or more periods of time, which may be of varying and overlapping durations, 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, an Award that vests based on the attainment of Performance Goals.

 

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(cc)     “Performance
Share” means an Award granted pursuant to Article 8 evidencing the right to receive a payment in the form of Stock depending
on the satisfaction of one or more Performance Goals for a particular Performance Period as determined by the Committee.

 

(dd)     “Performance
Share Unit” means an Award granted pursuant to Article 8 evidencing the right to receive a payment in the form of Stock,
cash, or a combination thereof, depending on the satisfaction of one or more Performance Goals for a particular Performance Period as
determined by the Committee.

 

(ee)     “Plan”
means this Cryoport, Inc. 2018 Omnibus Equity Incentive Plan, as amended.

 

(ff)     “Prior
Plan” means the Cryoport, Inc. 2015 Omnibus Equity Incentive Plan, the Cryoport, Inc. 2011 Stock Incentive Plan, and
any other similar plan adopted by the Company at any time in the past, which has not yet lapsed or expired.

 

(gg)     “Restricted
Stock” means Stock granted pursuant to Article 7 that is subject to certain restrictions and to the risk of forfeiture.

 

(hh)     “Restricted
Stock Right” means an Award granted pursuant to Article 7 evidencing the right to receive cash or Stock in the future,
the payment of which is subject to certain restrictions and to the risk of forfeiture.

 

(ii)            “Separation
from Service” is a term that applies only in the context of an Award that the Company concludes is subject to Section 409A
of the Code. In that limited context, “Separation from Service” means either: (i) the termination of a Participant’s
employment with the Company and all Affiliates due to death, retirement or other reasons; or (ii) a permanent reduction in the level
of bona fide services the Participant provides to the Company and all Affiliates to an amount that is twenty percent (20%) or less of
the average level of bona fide services the Participant provided to the Company and all Affiliates in the immediately preceding thirty
six (36) months, with the level of bona fide service calculated in accordance with Treasury Regulation Section 1.409A-1(h)(1)(ii).
Solely for purposes of determining whether a Participant has a “Separation from Service,” a Participant’s employment
relationship is treated as continuing while the Participant is on military leave, sick leave, or other bona fide leave of absence (if
the period of such leave does not exceed six (6) months, or if longer, so long as the Participant’s right to reemployment with
the Company or an Affiliate is provided either by statute or contract). If the Participant’s period of leave exceeds six (6) months
and the Participant’s right to reemployment is not provided either by statute or by contract, the employment relationship is deemed
to terminate on the first day immediately following the expiration of such six (6) month period. Whether a “Separation from
Service” has occurred will be determined based on all of the facts and circumstances and in accordance with regulations issued by
the United States Treasury Department pursuant to Section 409A of the Code.

 

In the case of a Non-Employee
Director, “Separation from Service” means that such individual has ceased to be a member of the Board.

 

(jj)     Specified
Employee” means certain officers and highly compensated employees of the Company as defined in Treasury Regulation Section 1.409A-1(i).
The identification date for determining whether any employee is a “Specified Employee” during any calendar year shall be the
September 1 preceding the commencement of such calendar year.

 

(kk)     “Stock”
means the Common Stock of the Company, $0.001 par value per share.

 

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(ll)     “Stock
Appreciation Right” or “SAR” means an Award granted pursuant to Article 6 evidencing the right to receive
a payment in cash or Stock equal to the excess of the Fair Market Value of one share of Stock on the date the SAR is settled over the
Fair Market Value of one share of Stock on the Grant Date.

 

(mm)     “Stock
Grant Award” means the grant of Stock pursuant to Article 9.

 

(nn)     “Stock
Unit Award” means an Award granted pursuant to Article 9 evidencing the right to receive a payment in the form of cash
or Stock, or a combination thereof.

 

ARTICLE 3

ELIGIBILITY AND PARTICIPATION

 

3.1            General
Eligibility. Awards may be made only to those Participants who are employees, officers, Consultants to, and Non-Employee
Directors of, the Company or an Affiliate on the Grant Date of the Award. Awards may also be granted to prospective employees or non-employee
members of the Board but no portion of any such Award will vest, become exercisable, be issued, or become effective prior to the date
on which such individual begins to provide services to the Company or any Affiliate.

 

3.2            Actual
Participation. Subject to the provisions of the Plan, the Committee may, from time to time, select from among all eligible
individuals, those to whom Awards will be granted and will determine the nature and amount of each Award. No individual shall have any
right to be selected to receive an Award, or having been so selected, to be selected to receive a future Award, except as otherwise provided
by separate agreement, the relevant provisions of which have been approved by the Committee.

 

ARTICLE 4

ADMINISTRATION

 

4.1            Administration
by the Committee. The Committee shall be responsible for the administration of the Plan. The Committee, by majority action thereof,
is authorized to: (a) interpret the Plan; (b) prescribe, amend, and rescind rules and regulations relating to the Plan;
(c) provide for conditions and assurances deemed necessary or advisable to protect the interests of the Company; and (d) make
all other determinations necessary for the administration of the Plan, but only to the extent not contrary to the express provisions of
the Plan.

 

4.2            Authority
of the Committee. The Committee shall have the authority, in its sole discretion, to determine: (a) the Participants who are
entitled to receive Awards under the Plan; (b) the types of Awards; (c) the times when Awards shall be granted; (d) the
number of Awards; (e) the purchase price or exercise price, if any, and the period(s) during which such Awards shall be exercisable
(whether in whole or in part); (f) the restrictions applicable to Awards; (g) the form of each Award Agreement, which need not
be the same for each Participant; (h) the other terms and provisions of any Award, which need not be the same for each Participant, including,
but not limited to, whether and to what extent, and in what circumstances an Award may be settled in cash, Stock, other Awards, or other
property or whether an Award may be cancelled, forfeited, exchanged or surrendered; (i) the schedule for lapse of restrictions or
limitations and accelerations or waivers thereof, based in each case on such considerations as the Committee deems appropriate; (j) whether
to establish, adopt or revise any rules and regulations as it deems necessary or advisable to administer the Plan; (k) whether
to correct any defects and reconcile any inconsistencies in the Plan or any Award Agreement; and (l) establish any provisions, rules,
procedures, regulations or subplans that the Committee deems necessary or appropriate to implement and administer the Plan in foreign
countries for Participants providing services outside of the United States. The Committee shall also have the authority to modify existing
Awards to the extent that such modification is within the power and authority of the Committee as set forth in the Plan. The foregoing
list of powers is not intended to be complete or exclusive and, to the extent not contrary to the express provisions of the Plan, the
Committee shall have such powers, whether or not expressly set forth in this Plan, that it may determine necessary or appropriate to administer
the Plan.

 

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4.3            Award
Agreement. Each Award shall be evidenced by an Award Agreement that shall specify the type of Award granted and such other provisions
and restrictions applicable to such Award as the Committee, in its discretion, shall determine. Each Award Agreement shall set forth the
extent to which a Participant shall have the right to retain and/or exercise an Award following termination of employment (or service)
and the medium of payment for each Award, including, without limitation, cash, Stock, other Awards, or other property, or any combination
thereof, and may be made in a single payment or transfer, in installments, or any combination thereof, in each case determined in accordance
with rules adopted by the Committee.

 

4.4            Delegation.
As permitted by law and the rules of the NASDAQ or such other exchange on which the Stock is then traded, the Committee may delegate
any authority granted to it pursuant to the Plan; provided, that: (a) any resolution of the Committee authorizing such delegation
to other Company officer(s) must, at a minimum, specify the total number of shares of Stock subject to Awards that such officer(s) may
so award and the vesting schedule applicable to such Awards; and (b) the Committee may not authorize any officer to designate himself
or herself as the recipient of an Award

 

4.5            Decisions
Binding. The Committee shall have the authority to interpret the Plan and subject to the provisions of the Plan, any Award
Agreement, and all decisions and determinations by the Committee with respect to the Plan are final, binding and conclusive on all parties.
No member of the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Award granted
under the Plan.

 

ARTICLE 5

STOCK SUBJECT TO THE PLAN

 

5.1            Number
of Shares. Subject to the adjustments provided in Sections 5.2 and 5.3, the total number of shares of Stock reserved and available
for grant under the Plan is 7,850,000. As provided in Section 1.1, no awards will be made pursuant to any Prior Plan on or after
the Effective Date. The shares to be delivered under the Plan may consist, in whole or in part, of authorized but unissued Stock or shares
purchased on the open market or treasury Stock not reserved for any other purpose.

 

5.2            Share
Counting; Lapsed Awards. The following rules shall apply solely for purposes of determining the total number of shares of
Stock available for grant under the Plan:

 

(a)            The
number of shares of Stock available for grant under this Plan shall be reduced by one (1) share of Stock for each share subject to
Awards granted under the Plan.

 

(b)            If
any Award granted under the Plan, or any award outstanding under any Prior Plan after the Effective Date terminates, expires, or lapses
for any reason, or is settled in cash (in whole or in part) or otherwise does not result in the issuance of all or a portion of the shares
subject to such Award or Prior Plan award, then in each such case, the number of shares of Stock subject to such Award or award under
any Prior Plan shall again be available or added to the shares of Stock available for grant under the Plan on a one-for-one basis.

 

(c)            In
the event that any shares of Stock are tendered or withheld to pay the exercise price of a stock-settled SAR or an Option (for example,
through a broker-assisted “cashless” exercise of an Option) or an option granted under any Prior Plan (or a portion thereof),
then in each such case the shares of Stock so tendered or withheld shall be added to the shares of Stock available for grant under the
Plan on a one-for-one basis.

 

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(d)            In
the event that any shares of Stock are tendered or withheld to satisfy a tax withholding obligation arising in connection with an Award
or an award granted under any Prior Plan, then in each such case the shares of Stock so tendered or withheld shall be added to the shares
of Stock available for grant under the Plan on a one-for-one basis.

 

(e)            If
the provisions of this Section 5.2 are inconsistent with the requirements of Section 422 of the Code, or any regulations promulgated
thereunder, the provisions of such regulations shall control over the provisions of this Section 5.2 but only to this extent that
this Section 5.2 applies to Incentive Stock Options.

 

(f)            The
Committee may adopt such other reasonable rules and procedures as it deems appropriate for determining the number of shares that
are available for grant under the Plan.

 

5.3            Adjustment
in Capitalization. In the event of any change in the outstanding shares of Stock by reason of a Stock dividend or split, recapitalization,
merger, consolidation, combination, exchange of shares, or other similar corporate change, the Committee shall make an adjustment in:
(a) the number and class of shares of Stock which may be delivered under the Plan; (b) the number of shares of Stock set forth
in Sections 5.1, 5.4, and 5.5 and any other similar numeric and share-denominated limit expressed in the Plan; and (c) the number
and class of and or price of shares of Stock subject to each outstanding Award. Notwithstanding anything in the Plan to the contrary,
in the event of such transaction or event, the Committee, in its sole discretion, may provide in substitution for any or all outstanding
Awards such alternative consideration (including cash) as it, in good faith, may determine to be equitable under the circumstances and
may require in connection therewith the surrender of all Awards so replaced. Any adjustments made pursuant to this Section 5.3 shall
be made in a manner consistent with the requirements of Section 409A of the Code and, in the case of Incentive Stock Options, in
a manner consistent with the requirements of Section 424(a) of the Code.

 

5.4            Annual
Limitation on Number of Shares Subject to Awards. Notwithstanding any provision in this Plan to the contrary, and subject to adjustment
as provided in Section 5.3: (a) the maximum number of shares of Stock that may be granted to any one Participant during any
one calendar year with respect to one or more Awards granted under the Plan other than Options or SARs shall be 1,000,000; and (b) the
maximum number of shares of Stock that may be granted to any one Participant during any one calendar year with respect to one or more
Option or SAR Awards granted under the Plan shall also be 1,000,000.

 

5.5            Annual
Limitation on Number of Shares Subject to Non-Employee Director Awards. Notwithstanding any provision in this Plan to the contrary,
and subject to adjustment as provided in Section 5.3, the aggregate grant date fair value (computed as of the date of grant in accordance
with applicable financial accounting rules) of all Awards granted to any Non-Employee Director during any single calendar year, plus the
total cash compensation paid to such director for services rendered for such calendar year as a Non-Employee Director, shall not exceed
$750,000. For the avoidance of doubt, any compensation that is deferred shall be counted toward this limit for the year in which it was
first earned, and not when paid or settled if later and if a Non-Employee Director serves the Company in more than one capacity during
any calendar year, the total compensation limit described in this Section 5.5 shall only apply to the compensation paid for services
performed as a Non-Employee Director.

 

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5.6            Fractional
Shares. No fractional shares of Stock shall be issued pursuant to the Plan. Unless the Committee specifies otherwise in the Award
Agreement or pursuant to any policy adopted by the Committee, cash will be given in lieu of fractional shares. In the event of adjustment
as provided in Section 5.3, the total number of shares of Stock subject to any affected Award shall always be a whole number by rounding
any fractional shares to the nearest whole share.

 

ARTICLE 6

STOCK OPTIONS; STOCK APPRECIATION RIGHTS

 

6.1            Grant
of Options. Subject to the provisions of the Plan, the Committee, at any time and from time to time, may grant Non-Qualified Stock
Options or Incentive Stock Options to such Participants and in such amounts as it shall determine.

 

(a)            Exercise
Price; No Re-pricing. No Option shall be granted at an exercise price that is less than the Fair Market Value of one share of
Stock on the Grant Date. Notwithstanding any other provision of the Plan to the contrary, without the approval of the Company’s
stockholders, an Option may not be amended, modified, or repriced to reduce the exercise price after the Grant Date or surrendered in
consideration of or exchanged for cash, other Awards or a new Option having an exercise price below that of the Option being surrendered
or exchanged, except in connection with an adjustment pursuant to Section 5.3 or, to the extent permitted by Section 409A of
the Code, in connection with a Change in Control of the Company.

 

(b)            Duration
of Options. Each Option shall expire at such time or times as the Committee shall determine as of the Grant Date; provided,
however, that all Options shall lapse and no longer be exercisable no later than ten (10) years from the Grant Date.

 

(c)            Time
and Conditions of Exercise. Options shall be exercisable at such times and be subject to such restrictions and conditions as the
Committee shall in each instance approve, which need not be the same for all Participants. The granting of an Option will impose no obligation
upon the Participant to exercise such Option.

 

(d)            Payment.
As determined by the Committee, the exercise price of an Option shall be paid in full: (i) in cash; (ii) in previously-acquired
Stock (through actual tender or by attestation), valued at its Fair Market Value on the date of exercise; (iii) by any net-issuance
arrangement (including, in the case of a Non-Qualified Stock Option, any broker-assisted “cashless” exercise arrangement);
or (iv) by a combination thereof.

 

6.2            Grant
of Incentive Stock Options. The following additional rules shall apply to Incentive Stock Options granted pursuant to this
Article 6:

 

(a)            Employee
Only. Incentive Stock Options shall be granted only to Participants who are employees.

 

(b)            Exercise
Price. Subject to Section 6.2(f), no Incentive Stock Option shall be granted at an exercise price that is less than the Fair
Market Value of one share of Stock on the Grant Date.

 

(c)            Exercise.
In no event may any Incentive Stock Option be exercisable for more than ten (10) years from the Grant Date.

 

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(d)            Lapse
of Option. An Incentive Stock Option shall lapse in the following circumstances:

 

(i)            The
Incentive Stock Option shall lapse ten (10) years from the Grant Date, unless an earlier time is set forth in the Award Agreement.

 

(ii)            The
Incentive Stock Option shall lapse ninety (90) days following the effective date of the Participant’s termination of employment
for any reason other than the Participant’s death or Disability, unless otherwise provided in the Award Agreement.

 

(iii)            If
the Participant incurs a termination of employment on account of Disability or death before the Option lapses pursuant to paragraph (i) or
(ii) above, the Incentive Stock Option shall lapse, unless it is previously exercised, on the earlier of: (a) the scheduled
expiration date of the Option; or (b) twelve (12) months after the date of the Participant’s termination of employment
on account of Disability or death. Upon the Participant’s Disability or death, any Incentive Stock Options exercisable at the Participant’s
Disability or death may be exercised by the Participant’s legal representative or representatives, by the person or persons entitled
to do so pursuant to the Participant’s last will and testament in the case of death, or, if the Participant fails to make testamentary
disposition of such Incentive Stock Option or dies intestate, by the person or persons entitled to receive the Incentive Stock Option
pursuant to the applicable laws of descent and distribution.

 

(e)            Individual
Dollar Limitation. The aggregate Fair Market Value (determined as of the time an Award is made) of all shares of Stock with respect
to which Incentive Stock Options are first exercisable by a Participant in any calendar year may not exceed $100,000 or such other limitation
as imposed by Section 422(d) of the Code. To the extent that Incentive Stock Options are first exercisable by a Participant
in excess of such limitation, the excess shall be considered Non-Qualified Stock Options.

 

(f)            Ten
Percent Owners. An Incentive Stock Option may be granted to any individual who, at the Grant Date, owns stock possessing more
than ten percent (10%) of the total combined voting power of all classes of Stock of the Company only if such Option is granted at a price
that is not less than 110% of the Fair Market Value on the Grant Date and the Option is exercisable for no more than five (5) years
from the Grant Date.

 

(g)            Expiration
of Incentive Stock Options. No Award of an Incentive Stock Option may be made pursuant to this Plan after the tenth (10th) anniversary
of the Effective Date.

 

(h)            Right
to Exercise. Except as provided in Section 6.2(d)(iii), during a Participant’s lifetime, an Incentive Stock Option
may be exercised only by the Participant.

 

(i)            Annual
Limitation on Number of Shares Subject to Incentive Stock Options. The maximum number of shares of Stock available for grant under
the Plan as Incentive Stock Options is the same numeric limit set forth in Section 5.1.

 

6.3            Grant
of Stock Appreciation Rights. Subject to the provisions of the Plan, the Committee, at any time and from time to time, may grant
SARs to such Participants and in such amounts as it shall determine. SARs may be granted in connection with the grant of an Option, in
which case the settlement of SARs will result in the surrender of the right to purchase the shares under the Option as to which the SARs
were exercised. When SARs are granted in connection with the grant of an Incentive Stock Option, the SARs shall have such terms and conditions
as shall be required by Section 422 of the Code. SARs may also be granted independently of Options.

 

(a)            Base
Value; No Re-pricing. The base value per share of Stock subject to any SAR shall be equal to the Fair Market Value of one share
of Stock on the Grant Date. Notwithstanding any other provision of the Plan to the contrary, without the approval of the Company’s
stockholders, a SAR may not be amended, modified, or repriced to reduce the base value after the Grant Date or surrendered in consideration
of or exchanged for cash, other Awards or a new SAR having a base value below that of the SAR being surrendered or exchanged, except in
connection with an adjustment pursuant to Section 5.3 or, to the extent permitted by Section 409A of the Code, a Change in Control
of the Company.

 

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(b)            Duration
of Stock Appreciation Rights. Each SAR shall expire at such time or times as the Committee shall determine as of the Grant Date;
provided, however, that all SARs shall lapse no later than ten (10) years from the Grant Date.

 

(c)            Payment.
As determined by the Committee, payment for SARs shall be made in cash, Stock, or a combination thereof at the time specified in the Award
Agreement.

 

ARTICLE 7

RESTRICTED STOCK RIGHTS AND RESTRICTED STOCK

 

7.1            Grant
of Restricted Stock Rights and Restricted Stock. Subject to the provisions of the Plan, the Committee, at any time and from time
to time, may grant Restricted Stock Rights or Restricted Stock to such Participants and in such amounts as it shall determine.

 

7.2            Grant
of Restricted Stock Rights.

 

(a)            Voting
Rights. During the applicable period of restriction, Participants holding Restricted Stock Rights shall have no voting rights
with respect to the shares subject to such Restricted Stock Rights. If the Restricted Stock Rights are settled in shares of Stock, voting
rights will be available only after the issuance of the shares of Stock underlying the Award.

 

(b)            Issuance
and Restrictions. Restricted Stock Rights grant a Participant the right to receive a specified number of shares of Stock, or cash
equal to the Fair Market Value (determined as of a specified date) of a specified number of shares of Stock, subject to such conditions
and/or restrictions as the Committee may impose, which need not be the same for each grant or for each Participant. These restrictions
may lapse separately or in combination at such times, in such circumstances, in such installments, or otherwise, as determined by the
Committee.

 

(c)            Forfeiture.
Except as otherwise provided in an Award Agreement, upon termination of employment (or termination of service) during the applicable period
of restriction, Restricted Stock Rights that are at that time subject to restrictions shall be forfeited.

 

(d)            Form and
Timing of Payment. Payment for any vested Restricted Stock Rights shall be made in the manner and at the time designated by the
Committee in the Award Agreement.

 

7.3            Grant
of Restricted Stock.

 

(a)            Voting
Rights; Dividend Rights. Except as otherwise provided in an Award Agreement, Participants holding Restricted Stock shall have
the right to vote the shares subject to such Restricted Stock as of the Grant Date for the Award. Any shares of Stock or any other property
distributed as a dividend or otherwise with respect to any Award of Restricted Stock as to which the restrictions have not yet lapsed
shall be subject to the same restrictions and risk of forfeiture as the underlying Restricted Stock Award.

 

(b)            Issuance
and Restrictions. Restricted Stock shall be subject to such conditions and/or restrictions, including restrictions on transferability,
as the Committee may impose, which need not be the same for each grant or for each Participant. These restrictions may lapse separately
or in combination at such times, in such circumstances, in such installments, or otherwise, as determined by the Committee.

 

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(c)            Forfeiture.
Except as otherwise provided in an Award Agreement, upon termination of employment (or termination of service) during the applicable period
of restriction, Restricted Stock that is still subject to restrictions shall be forfeited.

 

(d)            Certificates
for Restricted Stock. Restricted Stock granted pursuant to the Plan may be evidenced in such manner as the Committee shall determine.
If certificates representing shares of Restricted Stock are registered in the name of the Participant, the certificates must bear an appropriate
legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock, and the Company may, in its discretion,
retain physical possession of the certificate until such time as all applicable restrictions lapse.

 

ARTICLE 8

PERFORMANCE SHARES, PERFORMANCE SHARE UNITS AND PERFORMANCE CASH AWARDS

 

8.1            Grant
of Performance Shares. Subject to the terms and provisions of the Plan, the Committee, at any time and from time to time, may
grant Performance Shares to such Participants in such amounts as it shall determine. A Performance Share Award grants the Participant
the right to receive a specified number of shares of Stock depending on the satisfaction of any one or more Performance Goals. Performance
may be measured on a specified date or dates or over any period or periods determined by the Committee.

 

8.2            Grant
of Performance Share Units. Subject to the terms and provisions of the Plan, the Committee, at any time and from time to time,
may grant Performance Share Units to such Participants in such amounts as it shall determine. A Performance Share Unit Award grants the
Participant the right to receive a specified number of shares of Stock, cash, or a combination thereof, depending on the satisfaction
of any one or more Performance Goals. Performance may be measured on a specified date or dates or over any period or periods determined
by the Committee.

 

8.3            Grant
of Performance Cash. Subject to the terms and provisions of the Plan, the Committee, at any time and from time to time, may grant
Performance Cash to such Participants in such amounts as it shall determine. A Performance Cash Award grants the Participant the right
to receive an amount of cash depending on the satisfaction of any one or more Performance Goals. Performance may be measured on a specified
date or dates or over any period or periods determined by the Committee.

 

8.4            Performance
Goals. The Performance Goal or Goals applicable to any Performance Share, Performance Share Unit or Performance Cash Award shall
be based on the Performance Criteria selected by the Committee and designated in the Award Agreement. Except as otherwise may be required
by applicable law or regulation, the Committee shall retain the power to adjust the Performance Goals, the level of attainment of the
Performance Goals or otherwise increase or decrease the amount payable with respect to any Award made pursuant to this Article 8.

 

ARTICLE 9

STOCK GRANT AND STOCK UNIT AWARDS

 

9.1            Grant
of Stock. Subject to the provisions of the Plan, Stock Grant Awards may be granted to one or more Participants at any time and
from time to time, upon such terms and condition as shall be determined by the Committee. A Stock Grant Award grants a Participant the
right to receive (or purchase at such price as determined by the Committee) a designated number of shares of Stock free of any vesting
restrictions. The purchase price, if any, for a Stock Grant Award shall be payable in cash or other form of consideration acceptable to
the Committee. A Stock Grant Award may be granted or sold as described in the preceding sentence in respect of past services or other
valid consideration, or in lieu of any cash compensation due to such Participant.

 

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9.2            Grant
of Stock Units. Subject to the provisions of the Plan, Stock Unit Awards may be granted to one or more Participants at any time
and from time to time, upon such terms and conditions as shall be determined by the Committee. A Stock Unit Award grants a Participant
the right to receive a designated number of shares of Stock, or a cash payment equal to the Fair Market Value (determined as of a specified
date) of a designated number of shares of Stock, in the future free of any vesting restrictions. A Stock Unit Award may be granted or
sold as described in the preceding sentence in respect of past services or other valid consideration, or in lieu of any cash compensation
due to such Participant.

 

ARTICLE 10

CHANGE IN CONTROL

 

10.1            Double
Trigger. Except as set forth in Section 10.2, in the event the Company or any Affiliate terminates a Participant’s
employment (or Board service) without Cause, or a Participant resigns his or her employment for Good Reason, in either case, in connection
with or within twenty-four (24) months following a Change in Control, then, any outstanding but unvested Options, SARs, and other Awards
shall become fully exercisable and vested as of the date of the Participant’s termination of employment (or service). With respect
to an Award which the Company concludes is subject to (and not exempt from) the requirements of Section 409A, any actions taken by
the Committee pursuant to this Section 10.1 shall be done in compliance with Section 409A of the Code.

 

10.2            Committee
Discretion. Notwithstanding Section 10.1, the Committee shall have the authority and discretion, to provide, in an Award
Agreement or thereafter, that all or part of outstanding Options, SARs, and other Awards shall become fully exercisable and all or part
of the restrictions on outstanding Awards shall lapse upon the closing a transaction that results in a Change in Control. To the extent
that this provision causes Incentive Stock Options to exceed the dollar limitation set forth in Article 6, the excess Options shall
be deemed to be Non-Qualified Stock Options. In addition, upon, or in anticipation of, a Change in Control, the Committee may: (a) cause
all (or a portion of) outstanding Awards to be cancelled and terminated as of a specified date and give each Participant the right to
exercise such Awards during a period of time as the Committee, in its sole discretion, shall determine; or (b) cause all (or a portion
of) outstanding Awards to be cancelled and terminated as of a specified date in exchange for a payment or right to payment pursuant to
the terms and conditions set forth in the Change in Control transaction documents. With respect to an Award which the Company concludes
is subject to (and not exempt from) the requirements of Section 409A, any actions taken by the Committee pursuant to this Section 10.2
shall be done in compliance with Section 409A of the Code.

 

10.3            Participant
Consent Not Required. Nothing in this Article 10 or any other provision of this Plan is intended to provide any Participant
with any right to consent to or object to any transaction that might result in a Change in Control and each provision of this Plan shall
be interpreted in a manner consistent with this intent. Similarly, nothing in this Article 10 or any other provision of this Plan
is intended to provide any Participant with any right to consent to or object to any action taken by the Committee pursuant to this Article 10.

 

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ARTICLE 11

NON-TRANSFERABILITY

 

11.1            General.
The Committee may, in its sole discretion, determine the right of a Participant to transfer any Award granted under the Plan, provided
that in no event may an Award be transferred for value or consideration. Unless otherwise determined by the Committee and except as provided
in Section 11.2, no Award granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated,
other than by will or by the laws of descent and distribution or pursuant to a domestic relations order (that would otherwise qualify
as a qualified domestic relations order as defined in the Code or Title I of ERISA but for the fact that the order pertains to an Award)
in favor of a spouse or, if applicable, until the termination of any period of restriction or satisfaction of Performance Goals for a
Performance Period, as determined by the Committee.

 

11.2            Beneficiary
Designation. Notwithstanding Section 11.1, if permitted by the Committee, a Participant may designate a beneficiary to exercise
the rights of the Participant and to receive any distribution with respect to any Award upon the Participant’s death, and in the
case of Incentive Stock Options and in accordance with Article 6, upon the Participant’s Disability. Such designation must
be made in a form and substance approved by the Committee and no such designation shall be permitted for Participants providing services
outside of the United States. A beneficiary, legal guardian, legal representative, or other person claiming any rights pursuant to the
Plan is subject to all terms and conditions of the Plan and any Award Agreement applicable to the Participant, except to the extent the
Plan and Award Agreement otherwise provide, and to any additional restrictions deemed necessary or appropriate by the Committee. If no
beneficiary has been designated or survives the Participant, payment shall be made to the person entitled thereto pursuant to the Participant’s
will or the laws of descent and distribution. Subject to the foregoing, a beneficiary designation may be changed or revoked by a Participant
at any time provided the change or revocation is provided to the Committee.

 

ARTICLE 12

COMPANY DISCRETION; EVIDENCE OF OWNERSHIP; CLAWBACK

 

12.1            Employment.
Nothing in the Plan shall interfere with or limit in any way the right of the Company or any Affiliate to terminate any Participant’s
employment or service at any time, nor confer upon any Participant any right to continue in the employ or service of the Company or any
Affiliate.

 

12.2            Participant.
No employee shall have a right to be selected as a Participant, or, having been so selected, to be selected again as a Participant.

 

12.3            No
Rights to Awards. No Participant, employee, or other person shall have any claim to be granted any Award pursuant to the Plan,
and neither the Company nor the Committee is obligated to treat Participants, employees, and other persons uniformly.

 

12.4            Evidence
of Ownership. Notwithstanding anything herein to the contrary, the Company shall not be required to issue or deliver any certificates
evidencing shares of Stock, make any book entry credits, or take any other action to evidence the ownership of shares of Stock pursuant
to the exercise or settlement of any Award, unless and until the Committee has determined, with advice of counsel, that the issuance and
delivery of such certificates, book entry credits, or other evidence of ownership, is in compliance with all applicable laws, regulations
of governmental authorities and, if applicable, the requirements of any exchange or quotation system on which the shares of Stock are
listed, quoted or traded. All Stock certificates, book entry credits, or other evidence of ownership delivered pursuant to the Plan are
subject to any stop-transfer orders and other restrictions as the Committee deems necessary or advisable to comply with Federal, state,
or foreign jurisdiction, securities or other laws, rules and regulations and the rules of any national securities exchange or
automated quotation system on which the Stock is listed, quoted, or traded. The Committee may place legends on any Stock certificate to
reference restrictions applicable to the Stock. In addition to the terms and conditions provided herein, the Board may require that a
Participant make such reasonable covenants, agreements, and representations as the Board, in its discretion, deems advisable in order
to comply with any such laws, regulations, or requirements.

 

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12.5            Clawback.
Notwithstanding any provision of the Plan to the contrary, in an Award Agreement, the Committee shall include provisions calling for the
recapture or clawback of all or any portion of an Award to the extent necessary to comply with Company policy or applicable law in effect
on the date of the Award Agreement, including, but not limited to, the final rules issued by the Securities and Exchange Commission
and the NASDAQ or such other exchange on which the Stock is then traded pursuant to Section 954 of the Dodd-Frank Wall Street Reform
and Consumer Protection Act. The Committee also may include other clawback provisions in the Award Agreement as it determines to be appropriate.
By accepting an Award, each Participant agrees to be bound by, and comply with, the terms of any such recapture or clawback provisions
and with any Company request or demand for recapture or clawback.

 

ARTICLE 13

SUBSTITUTION OF AWARDS

 

Any Award may be granted under
this Plan in substitution for Awards held by any individual who is an employee of another corporation who is about to become an employee
of the Company as the result of a merger, consolidation or reorganization of the corporation with the Company, or the acquisition by the
Company of the assets of the corporation, or the acquisition by the Company of stock of the corporation as the result of which such corporation
becomes an Affiliate or a subsidiary of the Company. The terms and conditions of the Awards so granted may vary from the terms and conditions
set forth in this Plan to such extent as the Committee at the time of granting the Award may deem appropriate to conform, in whole or
in part, to the provisions of the Award in substitution for which they are granted. Any Awards made pursuant to this Article 13 shall
be made in a manner consistent with the requirements of Section 409A of the Code and, in the case of Incentive Stock Options, in
a manner consistent with the requirements of Section 424(a) of the Code.

 

ARTICLE 14

AMENDMENT, MODIFICATION, AND TERMINATION

 

14.1            Amendment,
Modification, Termination. The Committee may at any time, and from time to time, terminate, amend or modify the Plan; provided,
however, that any such action of the Committee shall be subject to approval of the stockholders to the extent required by
law, regulation or any stock exchange rule for any exchange on which shares of Stock are listed. Notwithstanding the above, to the
extent permitted by law, the Board may delegate to the Committee the authority to approve non-substantive amendments to the Plan. Except
as provided in Section 5.3, neither the Board nor the Committee may, without the approval of the stockholders: (a) directly
or indirectly reduce the purchase price, exercise price, or base value of any outstanding Award, including any Option or SAR; (b) increase
the numeric limits set forth in Sections 5.1, 5.4, 5.5 and any other similar numeric limit expressed in the Plan; (c) grant Options
or SARs with an exercise price or base value that is below Fair Market Value on the Grant Date (other than for a substitute award granted
pursuant to Article 13); (d) reprice previously granted Options or SARs or take any other action relative to an Option or SAR
that would be treated as a re-pricing under the rules of the NASDAQ or such other exchange on which the Stock is then traded; (e) cancel
any Option or SAR in exchange for cash or any other Award or in exchange for any Option or SAR with an exercise price and/or base value
that is less than the exercise price and/or base value of the original Option or SAR; (f) extend the exercise period for an Option
or SAR beyond ten (10) years from the Grant Date; (g) expand the types of Awards available for grant under the Plan; or (h) expand
the class of individuals eligible to participate in the Plan.

 

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14.2            Awards
Previously Granted. Except as provided in the next sentence, no amendment, modification, or termination of the Plan or any Award
under the Plan shall in any manner adversely affect any Award previously granted under the Plan without the consent of the holder thereof.
The consent of the holder of an Award is not needed if the change: (a) is necessary or appropriate to conform the Award to, or otherwise
satisfy legal requirements (including without limitation the provisions of Section 409A of the Code); (b) does not adversely
affect in any material way the rights of the holder; or (c) is made pursuant to an adjustment as provided in Section 5.3.

 

ARTICLE 15

TAX WITHHOLDING

 

15.1            Tax
Withholding. The Company shall have the power to withhold, or require a Participant to remit to the Company, up to the maximum
statutory amount necessary, in the applicable jurisdiction, to satisfy any federal, state, and local tax withholding requirements on any
Award under the Plan. To the extent that alternative methods of withholding are available under applicable tax laws, the Committee shall
have the power to choose among such methods.

 

15.2            Form of
Payment. To the extent permissible under applicable tax, securities, and other laws, the Company may, in its sole discretion,
permit the Participant to satisfy a tax withholding requirement by: (a) using already owned shares of Stock; (b) a broker-assisted
 “cashless” transaction; (c) directing the Company to apply shares of Stock to which the Participant is entitled pursuant
to the Award (including, for this purpose, the filing of an election under Section 83(b) of the Code), to satisfy the applicable
withholding amount; or (d) personal check or other cash equivalent acceptable to the Company.

 

15.3            Tax
upon Disposition of Shares Subject to Section 422 Restrictions. In the event that a Participant disposes (whether by sale,
exchange, gift, the use of a qualified domestic relations order (that would otherwise qualify as a qualified domestic relations order
as defined in the Code or Title I of ERISA but for the fact that the order pertains to an Award in favor of a spouse)), of any shares
of Stock of the Company that are deemed to have been purchased by the Participant pursuant to an Incentive Stock Option and that the Participant
acquired within two (2) years of the Grant Date of the related Option or within one (1) year after the acquisition of such shares
of Stock, the Participant will notify the secretary of the Company of such disposition no later than fifteen (15) days following
the date of the disposition. Such notification shall include the date or dates of the disposition, the number of shares of Stock of which
the Participant disposed, and the consideration received, if any, for such shares of Stock. If the Company so requests, the Participant
shall forward to the secretary of the Company any amount requested by the Company for the purpose of satisfying its liability, if any,
to withhold federal, state or local income or earnings tax or any other applicable tax or assessment (plus interest or penalties thereon,
if any, caused by delay in making such payment) incurred by reason of such disposition.

 

ARTICLE 16

INDEMNIFICATION

 

Each person who is or shall
have been a member of the Committee or of the Board shall be indemnified and held harmless by the Company against and from any loss, cost,
liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action,
suit, or proceeding to which he or she may be a party or in which he may be involved by reason of any action taken or failure to act under
the Plan and against and from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid
by him or her in satisfaction of any judgment in any such action, suit, or proceeding against him or her, provided he or she shall give
the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his
or her own behalf. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such
person may be entitled under the Company’s articles of incorporation, bylaws, resolution or agreement, as a matter of law, or otherwise,
or any power that the Company may have to indemnify him or her or hold him harmless.

 

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ARTICLE 17

REQUIREMENTS OF LAW

 

17.1            Requirements
of Law. The granting of Awards and the issuance of shares and/or cash under the Plan shall be subject to all applicable laws,
rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. The Company
shall be under no obligation to register pursuant to the Securities Act of 1933, as amended, any of the shares of Stock paid pursuant
to the Plan. If the shares of Stock paid pursuant to the Plan may in certain circumstances be exempt from registration pursuant to the
Securities Act of 1933, as amended, the Company may restrict the transfer of such shares in such manner as it deems advisable to ensure
the availability of any such exemption. Consistent with Section 4.2, the Committee has the authority to impose different terms and
conditions on Awards granted to Participants providing services outside of the United States in order to accommodate differences in applicable
law, rules, regulations, or customs in a foreign jurisdiction.

 

17.2            Governing
Law. The Plan and all agreements into which the Company and any Participant enter pursuant to the Plan shall be construed in accordance
with and governed by the laws of the State of Nevada. The Plan is an unfunded performance-based bonus plan for a select group of management
or highly compensated employees and is not intended to be subject to ERISA.

 

17.3            Section 409A
of the Code.

 

(a)            General
Compliance. Some of the Awards that may be granted pursuant to the Plan (including, but not necessarily limited to, Restricted
Stock Rights Awards, Performance Share Awards, Performance Share Unit Awards, Performance Cash Awards and Stock Unit Awards) may be considered
to be “non-qualified deferred compensation” subject to Section 409A of the Code. If an Award is subject to Section 409A
of the Code, the Company intends (but cannot and does not guarantee) that the Award Agreement and this Plan comply fully with and meet
all of the requirements of Section 409A of the Code or an exception thereto. In such cases, the Award Agreement shall include such
provisions, in addition to the provisions of this Plan, as may be necessary to assure compliance with Section 409A of the Code or
an exception thereto. An Award subject to Section 409A of the Code also shall be administered in compliance with the provisions of
Section 409A of the Code as well as applicable guidance issued by the Internal Revenue Service and the Department of Treasury. To
the extent necessary to comply with Section 409A of the Code, any Award that is subject to Section 409A of the Code may be modified,
replaced or terminated in the discretion of the Committee. Notwithstanding any provision of this Plan or any Award Agreement to the contrary,
in the event that the Committee determines that any Award is or may become subject to Section 409A of the Code, the Company may adopt
such amendments to the Plan and the related Award Agreements, without the consent of the Participant, or adopt other policies and procedures
(including amendments, policies and procedures with retroactive effective dates), or take any other action that the Committee determines
to be necessary or appropriate to either comply with Section 409A of the Code or to exclude or exempt the Plan or any Award from
the requirements of Section 409A of the Code.

 

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(b)            Delay
for Specified Employees. If, at the time of a Participant’s Separation from Service, the Company has any Stock which is
publicly traded on an established securities market or otherwise, and if the Participant is considered to be a Specified Employee, to
the extent any payment for any Award is subject to the requirements of Section 409A of the Code and is payable upon the Participant’s
Separation from Service, and only to the extent necessary in order to avoid the imposition of adverse tax consequences under Section 409A
of the Code, such payment shall not commence prior to the first business day following the date which is six (6) months after the
Participant’s Separation from Service (or if earlier than the end of the six (6) month period, the date of the Participant’s
death). Any amounts that would have been distributed during such six (6) month period will be distributed on the day following the
expiration of the six (6) month period.

 

(c)            Prohibition
on Acceleration or Deferral. Under no circumstances may the time or schedule of any payment for any Award that is subject to the
requirements of Section 409A of the Code be accelerated or subject to further deferral except as otherwise permitted or required
pursuant to regulations and other guidance issued pursuant to Section 409A of the Code. If the Company fails to make any payment
pursuant to the payment provisions applicable to an Award that is subject to Section 409A of the Code, either intentionally or unintentionally,
within the time period specified in such provisions, but the payment is made within the same calendar year, such payment will be treated
as made within the time period specified in the provisions. In addition, in the event of a dispute with respect to any payment, such payment
may be delayed in accordance with the regulations and other guidance issued pursuant to Section 409A of the Code.

 

17.4            Securities
Law Compliance. With respect to any Participant who is, on the relevant date, obligated to file reports pursuant to Section 16
of the Exchange Act, transactions pursuant to this Plan are intended to comply with all applicable conditions of Rule 16b-3 or its
successors pursuant to the Exchange Act. Notwithstanding any other provision of the Plan, the Committee may impose such conditions on
the exercise of any Award as may be required to satisfy the requirements of Rule 16b-3 or its successors pursuant to the Exchange
Act. To the extent any provision of the Plan or action by the Committee fails to so comply, it shall be void to the extent permitted by
law and voidable as deemed advisable by the Committee.

 

17.5            Other
Restrictions. The Committee shall impose such restrictions on any Awards under the Plan as it may deem advisable, including without
limitation, restrictions under applicable federal securities law, under the requirements of any stock exchange upon which the Stock is
then listed and under any blue sky or state securities laws applicable to such Awards.

 

ARTICLE 18

GENERAL PROVISIONS

 

18.1            Dividend
Equivalents. Subject to the provisions of the Plan and any Award Agreement, the Committee, at any time and from time to time,
may with respect to Awards other than Options or SARs, grant amounts equivalent to cash, stock or other property dividends (“Dividend
Equivalents”) with respect to the number of shares of Stock covered by an Award. The Committee may, in the Award Agreement,
provide that the Dividend Equivalents, if any, shall be deemed to have been reinvested in additional shares of Stock or otherwise reinvested.
Notwithstanding the foregoing, Dividend Equivalents credited in connection with an unvested Award shall be subject to restrictions and
risk of forfeiture to the same extent as the underlying Award, and shall not be paid to the Participant unless and until the underlying
Award vests and is paid.

 

18.2            Funding.
The Company shall not be required to segregate any of its assets to ensure the payment of any Award under the Plan. Neither the Participant
nor any other persons shall have any interest in any fund or in any specific asset or assets of the Company or any other entity by reason
of any Award, except to the extent expressly provided hereunder. The interests of each Participant and former Participant hereunder are
unsecured and shall be subject to the claims of general creditors of the Company.

 

    19

     

    

 

18.3            No
Stockholders Rights. No Award gives the Participant any of the rights of a stockholder of the Company unless and until shares
of Stock are in fact issued to such person in connection with such Award.

 

18.4            Titles
and Headings. The titles and headings of the Articles in the Plan are for convenience of reference only and, in the event of any
conflict, the text of the Plan, rather than such titles or headings, shall control.

 

18.5            Successors
and Assigns. The Plan shall be binding upon and inure to the benefit of the successors and permitted assigns of the Company, including
without limitation, whether by way of merger, consolidation, operation of law, assignment, purchase, or other acquisition of substantially
all of the assets or business of the Company, and any and all such successors and assigns shall absolutely and unconditionally assume
all of the Company’s obligations under the Plan.

 

18.6            Survival
of Provisions. The rights, remedies, agreements, obligations and covenants contained in or made pursuant to this Plan,
any agreement and any notices or agreements made in connection with this Plan shall survive the execution and delivery of such notices
and agreements and the delivery and receipt of such shares of Stock if required by Section 12.4, shall remain in full force and effect.

 

    20Exhibit
10.1

 

Execution
Version

 

April
29, 2021

 

ION
Acquisition Corp 3 Ltd.

89 Medinat Hayehudim Street

Herzliya 4676672, Israel

 

		Re:	Initial
                                            Public Offering

 

Ladies
and Gentlemen:

 

This
letter (this “Letter Agreement”) is being delivered to you in accordance with the Underwriting Agreement (the
“Underwriting Agreement”) entered into by and among ION Acquisition Corp 3 Ltd., a Cayman Islands exempted
company (the “Company”), and Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC, as the representatives
(the “Representatives”) of the several underwriters named therein (the “Underwriters”),
relating to an underwritten initial public offering (the “Public Offering”), of up to 25,300,000 of the Company’s
Class A ordinary shares (including up to 3,300,000 shares that may be purchased to cover over-allotments, if any)(the “Shares”),
par value $0.0001 per share. The Shares will be sold in the Public Offering pursuant to a registration statement on Form S-1 and prospectus
(the “Prospectus”) filed by the Company with the U.S. Securities and Exchange Commission (the “Commission”)
and the Company has applied to have the Shares listed on the New York Stock Exchange. Certain capitalized terms used herein are defined
in paragraph 11 hereof.

 

In
order to induce the Company and the Underwriters to enter into the Underwriting Agreement and to proceed with the Public Offering and
for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each of ION Holdings 3, LP (the
“Sponsor”), acting by its sole general partner, ION Acquisition Corp GP Ltd., a company incorporated in the
State of Israel, and the undersigned individuals, each of whom is a member of the Company’s board of directors and/or management
team (each of the undersigned individuals, an “Insider” and collectively, the “Insiders”),
hereby agrees with the Company as follows:

 

		1.	The
                                            Sponsor and each Insider agrees that if the Company seeks shareholder approval of a proposed
                                            Business Combination, then in connection with such proposed Business Combination, it, he
                                            or she shall (i) vote any Ordinary Shares (as defined below) owned by it, him or her
                                            in favor of any proposed Business Combination and (ii) not redeem any Ordinary Shares owned
                                            by it, him or her in connection with such shareholder approval. If the Company seeks to consummate
                                            a proposed Business Combination by engaging in a tender offer, the Sponsor and each Insider
                                            agrees that it, he or she will not sell or tender any Ordinary Shares owned by it, him or
                                            her in connection therewith.

 

		2.	The
                                            Sponsor and each Insider hereby agrees that in the event that the Company fails to consummate
                                            a Business Combination within 24 months from the closing of the Public Offering, or such
                                            later period approved by the Company’s shareholders in accordance with the Company’s
                                            amended and restated memorandum and articles of association (as it may be amended from time
                                            to time, the “Charter”), the Sponsor and each Insider shall take
                                            all reasonable steps to cause the Company to (i) cease all operations except for the purpose
                                            of winding up, (ii) as promptly as reasonably possible but not more than ten (10) business
                                            days thereafter, redeem 100% of the Class A Ordinary Shares sold in the Public Offering (the
                                            “Offering Shares”), at a per-share price, payable in cash, equal
                                            to the aggregate amount then on deposit in the Trust Account (as defined below), including
                                            interest earned on the funds held in the Trust Account (less taxes payable and up to $100,000
                                            of interest to pay dissolution expenses), divided by the number of then outstanding Offering
                                            Shares, which redemption (the “Redemption”) will completely extinguish
                                            all Public Shareholders’ (as defined below) rights as shareholders (including the right
                                            to receive further liquidating distributions, if any), and (iii) as promptly as reasonably
                                            possible following such redemption, subject to the approval of the Company’s remaining
                                            shareholders and the Company’s board of directors, liquidate and dissolve (the “Liquidation”),
                                            subject in each case to the Company’s obligations under Cayman Islands law to provide
                                            for claims of creditors and in all cases subject to the other requirements of applicable
                                            law. The Sponsor and each Insider agrees to not propose any amendment to the Charter (A)
                                            to modify the substance or timing of the Company’s obligation to allow redemption in
                                            connection with the Company’s initial Business Combination or to redeem 100% of the
                                            Offering Shares if the Company does not complete a Business Combination within the required
                                            time period set forth in the Charter or (B) with respect to any other material provisions
                                            relating to shareholders’ rights or pre-initial Business Combination activity, unless
                                            the Company provides its Public Shareholders with the opportunity to redeem their Offering
                                            Shares upon approval of any such amendment at a per-share price, payable in cash, equal to
                                            the aggregate amount then on deposit in the Trust Account, including interest earned on the
                                            funds held in the Trust Account and not previously released to the Company to pay its taxes,
                                            divided by the number of then outstanding Offering Shares.

 

     

     

    

 

		3.	The
                                            Sponsor and each Insider acknowledges that it, he or she has no right, title, interest or
                                            claim of any kind in or to any monies held in the Trust Account or any other asset of the
                                            Company as a result of any liquidation of the Company with respect to the Founder Shares
                                            or the Private Placement Shares held by it, him or her. The Sponsor and each Insider hereby
                                            further waives, with respect to any Ordinary Shares held by it, him or her, if any, any redemption
                                            rights it, he or she may have in connection with (a) the consummation of a Business Combination,
                                            including, without limitation, any such rights available in the context of a shareholder
                                            vote to approve such Business Combination, or (b) a shareholder vote to approve an amendment
                                            to the Charter (A) to modify the substance or timing of the Company’s obligation to
                                            allow redemption in connection with the Company’s initial Business Combination or to
                                            redeem 100% of the Offering Shares if the Company has not consummated a Business Combination
                                            within the time period set forth in the Charter or (B) with respect to any other material
                                            provisions relating to shareholders’ rights or pre-initial Business Combination activity
                                            or in the context of a tender offer made by the Company to purchase Offering Shares (although
                                            the Sponsor, the Insiders and their respective affiliates shall be entitled to redemption
                                            and liquidation rights with respect to any Offering Shares it or they hold if the Company
                                            fails to consummate a Business Combination within the time period set forth in the Charter).

 

		4.	During
                                            the period commencing on the effective date of the Underwriting Agreement and ending 180
                                            days after such date, the Sponsor and each Insider shall not, without the prior written consent
                                            of the Representatives, (i) sell, offer to sell, contract or agree to sell, hypothecate,
                                            pledge, grant any option to purchase or otherwise dispose of or agree to dispose of, directly
                                            or indirectly, or establish or increase a put equivalent position or liquidate or decrease
                                            a call equivalent position within the meaning of Section 16 of the Securities Exchange Act
                                            of 1934, as amended (the “Exchange Act”), and the rules and regulations
                                            of the Commission promulgated thereunder, with respect to, any Ordinary Shares (including,
                                            but not limited to, Founder Shares), units, warrants or any securities convertible into,
                                            or exercisable, or exchangeable for, Ordinary Shares owned by it, him or her, (ii) enter
                                            into any swap or other arrangement that transfers to another, in whole or in part, any of
                                            the economic consequences of ownership of any Ordinary Shares (including, but not limited
                                            to, Founder Shares), units, warrants or any securities convertible into, or exercisable,
                                            or exchangeable for, Ordinary Shares owned by it, him or her, whether any such transaction
                                            is to be settled by delivery of such securities, in cash or otherwise, or (iii) publicly
                                            announce any intention to effect any transaction specified in clause (i) or (ii). The provisions
                                            of this paragraph will not apply to any transfer permitted under paragraph 7(c) hereof or
                                            if the release or waiver is effected solely to permit a transfer not for consideration and
                                            the transferee has agreed in writing to be bound by the same terms described in this Letter
                                            Agreement to the extent and for the duration that such terms remain in effect at the time
                                            of the transfer.

 

		5.	In
                                            the event of the liquidation of the Trust Account upon the failure of the Company to consummate
                                            its initial Business Combination within the time period set forth in the Charter, the Sponsor
                                            (the “Indemnitor”) agrees to indemnify and hold harmless the Company
                                            against any and all loss, liability, claim, damage and expense whatsoever (including, but
                                            not limited to, any and all legal or other expenses reasonably incurred in investigating,
                                            preparing or defending against any litigation, whether pending or threatened) to which the
                                            Company may become subject as a result of any claim by (i) any third party (other than the
                                            Company’s independent registered public accounting firm) for services rendered or products
                                            sold to the Company or (ii) any prospective target business with which the Company has entered
                                            into a written letter of intent, confidentiality or other similar agreement or Business Combination
                                            agreement (a “Target”); provided, however, that such
                                            indemnification of the Company by the Indemnitor (x) shall apply only to the extent necessary
                                            to ensure that such claims by a third party or a Target do not reduce the amount of funds
                                            in the Trust Account to below the lesser of (i) $10.00 per Offering Share and (ii) the actual
                                            amount per Offering Share held in the Trust Account as of the date of the liquidation of
                                            the Trust Account, if less than $10.00 per Offering Share is then held in the Trust Account
                                            due to reductions in the value of the trust assets, less taxes payable, (y) shall not apply
                                            to any claims by a third party (other than the Company’s independent registered public
                                            accounting firm) or a Target which executed a waiver of any and all rights to the monies
                                            held in the Trust Account (whether or not such waiver is enforceable) and (z) shall not apply
                                            to any claims under the Company’s indemnity of the Underwriters against certain liabilities,
                                            including liabilities under the Securities Act of 1933, as amended. The Indemnitor shall
                                            have the right to defend against any such claim with counsel of its choice reasonably satisfactory
                                            to the Company if, within 15 days following written receipt of notice of the claim to the
                                            Indemnitor, the Indemnitor notifies the Company in writing that it shall undertake such defense.

 

    2

     

    

 

		6.	To
                                            the extent that the Underwriters do not exercise their over-allotment option to purchase
                                            up to an additional 3,300,000 Shares within 45 days from the date of the Prospectus (and
                                            as further described in the Prospectus), (x) the Sponsor agrees to forfeit, at no cost, a
                                            number of Founder Shares in the aggregate equal to 825,000 multiplied by a fraction, (i)
                                            the numerator of which is 3,300,000 minus the number of Shares purchased by the Underwriters
                                            upon the exercise of their overallotment option, and (ii) the denominator of which is 3,300,000.
                                            The forfeiture will be adjusted to the extent that the over-allotment option is not exercised
                                            in full by the Underwriters so that the Founder Shares will represent an aggregate of 20.0%
                                            of the Company’s issued and outstanding Ordinary Shares after the Public Offering (not
                                            including the Private Placement Shares (as defined below)). The Initial Shareholders further
                                            agree that to the extent that the size of the Public Offering is increased or decreased,
                                            the Company will effect a share repurchase or share capitalization, as applicable, immediately
                                            prior to the consummation of the Public Offering in such amount as to maintain the ownership
                                            of the Initial Shareholders prior to the Public Offering at 20.0% of its issued and outstanding
                                            Ordinary Shares upon the consummation of the Public Offering. In connection with such increase
                                            or decrease in the size of the Public Offering, then (A) the references to 3,300,000 in the
                                            numerator and denominator of the formula in the first sentence of this paragraph shall be
                                            changed to a number equal to 15% of the number of Offering Shares issued in the Public Offering
                                            and (B) the references to 825,000 in the formula set forth in the first sentence of this
                                            paragraph shall be adjusted to, respectively, such number of Founder Shares that the Sponsor
                                            would have to return to the Company in order for the Sponsor and its permitted transferees
                                            to hold an aggregate of 20.0% of the Company’s issued and outstanding Ordinary Shares
                                            after the Public Offering (not including Class A Ordinary Shares or Private Placement Shares).

 

		7.	The
                                            Sponsor and each Insider hereby agrees and acknowledges that: (i) the Underwriters and the
                                            Company would be irreparably injured in the event of a breach by such Sponsor or an Insider
                                            of its, his or her obligations under paragraphs 1, 2, 3, 4, 5, 7(a), 7(b), and 9 as applicable,
                                            of this Letter Agreement, (ii) monetary damages may not be an adequate remedy for such breach
                                            and (iii) the non-breaching party shall be entitled to seek injunctive relief, in addition
                                            to any other remedy that such party may have in law or in equity, in the event of such breach.

 

		8.	(a)
                                            The Sponsor and each Insider agrees that it, he or she shall not Transfer any Founder Shares
                                            (or any Class A Ordinary Shares issuable upon conversion thereof), except to permitted transferees
                                            as described herein, until the earlier of (A) one year after the completion of the Company’s
                                            initial Business Combination, and (B) subsequent to our initial Business Combination, (x)
                                            if the closing price of the Class A Ordinary Shares equals or exceeds $12.00 per share (as
                                            adjusted for share sub-divisions, share capitalizations, reorganizations, recapitalizations
                                            and the like) for any 20 trading days within any 30- trading day period commencing at least
                                            150 days after the Company’s initial Business Combination, and (y) the date on which
                                            the Company completes a liquidation, merger, share exchange or other similar transaction
                                            that results in all of the Company’s shareholders having the right to exchange their
                                            Class A Ordinary Shares for cash, securities or other property (the “Founder
                                            Shares Lock-up Period”).

 

(b)
The Sponsor and each Insider agrees that it, he or she shall not Transfer any Private Placement Shares, until 30 days after the completion
of a Business Combination (the “Private Placement Shares Lock-up Period”, together with the Founder Shares
Lock-up Period, the “Lock-up Periods”).

 

(c)
Notwithstanding the provisions set forth in paragraphs 7(a) and (b), Transfers of the Founder Shares and Private Placement Shares that
are held by the Sponsor or any Insider or any of their permitted transferees (that have complied with this paragraph 7(c)), are permitted
(i) to the Company’s officers or directors, any affiliate or family member of any of the Company’s officers or directors,
any members or partners of the Sponsor or their affiliates, any affiliates of the Sponsor, or any employees of such affiliates; (ii)
in the case of an individual, by gift to a member of such individual’s immediate family or to a trust, the beneficiary of which
is a member of such individual’s immediate family, an affiliate of such individual or to a charitable organization; (iii) in the
case of an individual, by virtue of laws of descent and distribution upon death of such individual; (iv) in the case of an individual,
pursuant to a qualified domestic relations order; (v) by private sales or transfers made in connection with any forward purchase agreement
or similar arrangement or in connection with the consummation of an initial Business Combination at prices no greater than the price
at which the securities were originally purchased; (vi) in the event of the Company’s liquidation prior to the completion of an
initial Business Combination; (vii) by virtue of the laws of the Cayman Islands or the Sponsor’s exempted limited partnership agreement
upon termination and winding-up of the Sponsor; or (viii) in the event of the Company’s liquidation, merger, share exchange or
other similar transaction which results in all of the Company’s shareholders having the right to exchange their Class A Ordinary
Shares for cash, securities or other property subsequent to the Company’s completion of an initial Business Combination; provided,
however, that in the case of clauses (i) through (v) or (vii), these permitted transferees must enter into a written agreement with the
Company agreeing to be bound by the transfer restrictions herein and the other restrictions contained in this Agreement (including provisions
relating to voting, the Trust Account, redemptions and liquidating distributions); and, provided, further, that for the avoidance of
doubt, no Private Placement Shares shall be entitled to participate in the Redemption or liquidating distributions from the Trust Account.

 

    3

     

    

 

		9.	The
                                            Sponsor and each Insider represents and warrants that it, he or she has never been suspended
                                            or expelled from membership in any securities or commodities exchange or association or had
                                            a securities or commodities license or registration denied, suspended or revoked. Each Insider’s
                                            biographical information furnished to the Company (including any such information included
                                            in the Prospectus) is true and accurate in all respects and does not omit any material information
                                            with respect to the Insider’s background. The Sponsor and each Insider’s questionnaire
                                            furnished to the Company is true and accurate in all respects. The Sponsor and each Insider
                                            represents and warrants that: it, he or she is not subject to or a respondent in any legal
                                            action for, any injunction, cease-and-desist order or order or stipulation to desist or refrain
                                            from any act or practice relating to the offering of securities in any jurisdiction; it,
                                            he or she has never been convicted of, or pleaded guilty to, any crime (i) involving fraud,
                                            (ii) relating to any financial transaction or handling of funds of another person, or (iii)
                                            pertaining to any dealings in any securities and it, he or she is not currently a defendant
                                            in any such criminal proceeding.

 

		10.	Except
                                            as disclosed in the Prospectus, neither the Sponsor nor any officer or director of the Company,
                                            nor any affiliate of the Sponsor or any officer, or director of the Company, shall receive
                                            from the Company any finder’s fee, reimbursement, consulting fee, non-cash payments,
                                            monies in respect of any repayment of a loan or other compensation prior to, or in connection
                                            with any services rendered in order to effectuate, the consummation of the Company’s
                                            initial Business Combination (regardless of the type of transaction that it is), other than
                                            the following, none of which will be made from the proceeds held in the Trust Account prior
                                            to the completion of the initial Business Combination: repayment of a loan and advances up
                                            to an aggregate of $300,000 made to the Company by the Sponsor; payment to the Sponsor for
                                            certain office space, utilities and administrative and support services as may be reasonably
                                            required by the Company for a total of $10,000 per month; reimbursement for any out-of-pocket
                                            expenses related to identifying, investigating, negotiating and completing an initial Business
                                            Combination, and repayment of loans, if any, and on such terms as to be determined by the
                                            Company from time to time, made by the Sponsor or an affiliate of the Sponsor or any of the
                                            Company’s officers or directors to finance transaction costs in connection with an
                                            intended initial Business Combination, provided, that, if the Company does not consummate
                                            an initial Business Combination, a portion of the working capital held outside the Trust
                                            Account may be used by the Company to repay such loaned amounts so long as no proceeds from
                                            the Trust Account are used for such repayment. Up to $1,500,000 of such loans may be convertible
                                            into private placement shares of the post-business combination entity at a price of $10.00
                                            per share at the option of the lender. Such shares would be identical to the Private Placement
                                            Shares, including as to exercise price, exercisability and exercise period.

 

		11.	The
                                            Sponsor and each Insider has full right and power, without violating any agreement to which
                                            it is bound (including, without limitation, any non-competition or non-solicitation agreement
                                            with any employer or former employer), to enter into this Letter Agreement and, as applicable,
                                            to serve as an officer and/or director on the board of directors of the Company and hereby
                                            consents to being named in the Prospectus as an officer and/or director of the Company.

 

		12.	As
                                            used herein, (i) “Business Combination” shall mean a merger, share
                                            exchange, asset acquisition, share purchase, reorganization or similar business combination,
                                            involving the Company and one or more businesses; (ii) “Ordinary Shares”
                                            shall mean the Class A Ordinary Shares and Class B ordinary shares, par value $0.0001 per
                                            share (the “Class B Ordinary Shares”); (iii) “Founder
                                            Shares” shall mean the 6,325,000 Class B Ordinary Shares issued and outstanding
                                            (up to 825,000 of which are subject to complete or partial forfeiture if the over-allotment
                                            option is not exercised by the Underwriters); (iv) “Initial Shareholders”
                                            shall mean the Sponsor and any Insider that holds Founder Shares; (v) “Private
                                            Placement Shares” shall mean the 690,000 shares (or 756,000 shares if the over-allotment
                                            option is exercised in full) that the Sponsor has agreed to purchase for an aggregate purchase
                                            price of $6,900,000 (or $7,560,000 if the over-allotment option is exercised in full) or
                                            $10.00 per share, in a private placement that shall occur simultaneously with the consummation
                                            of the Public Offering; (vi) “Public Shareholders” shall mean the
                                            holders of securities issued in the Public Offering; (vii) “Trust Account”
                                            shall mean the trust fund into which a portion of the net proceeds of the Public Offering
                                            and the sale of the Private Placement Shares shall be deposited; and (viii) “Transfer”
                                            shall mean the (a) sale of, offer to sell, contract or agreement to sell, hypothecate, pledge,
                                            grant of any option to purchase or otherwise dispose of or agreement to dispose of, directly
                                            or indirectly, or establishment or increase of a put equivalent position or liquidation with
                                            respect to or decrease of a call equivalent position within the meaning of Section 16 of
                                            the Exchange Act, and the rules and regulations of the Commission promulgated thereunder
                                            with respect to, any security, (b) entry into any swap or other arrangement that transfers
                                            to another, in whole or in part, any of the economic consequences of ownership of any security,
                                            whether any such transaction is to be settled by delivery of such securities, in cash or
                                            otherwise, or (c) public announcement of any intention to effect any transaction specified
                                            in clause (a) or (b).

 

    4

     

    

 

		13.	The
                                            Company will maintain an insurance policy or policies providing directors’ and officers’
                                            liability insurance, and each director shall be covered by such policy or policies, in accordance
                                            with its or their terms, to the maximum extent of the coverage available for any of the Company’s
                                            directors or officers.

  

		14.	This
                                            Letter Agreement constitutes the entire agreement and understanding of the parties hereto
                                            in respect of the subject matter hereof and supersedes all prior understandings, agreements,
                                            or representations by or among the parties hereto, written or oral, to the extent they relate
                                            in any way to the subject matter hereof or the transactions contemplated hereby. This Letter
                                            Agreement may not be changed, amended, modified or waived (other than to correct a typographical
                                            error) as to any particular provision, except by a written instrument executed by all parties
                                            hereto.

 

		15.	No
                                            party hereto may assign either this Letter Agreement or any of its rights, interests, or
                                            obligations hereunder without the prior written consent of the other parties. Any purported
                                            assignment in violation of this paragraph shall be void and ineffectual and shall not operate
                                            to transfer or assign any interest or title to the purported assignee. This Letter Agreement
                                            shall be binding on the Sponsor and each Insider and their respective successors, heirs and
                                            assigns and permitted transferees.

 

		16.	Nothing
                                            in this Letter Agreement shall be construed to confer upon, or give to, any person or corporation
                                            other than the parties hereto any right, remedy or claim under or by reason of this Letter
                                            Agreement or of any covenant, condition, stipulation, promise or agreement hereof. All covenants,
                                            conditions, stipulations, promises and agreements contained in this Letter Agreement shall
                                            be for the sole and exclusive benefit of the parties hereto and their successors, heirs,
                                            personal representatives and assigns and permitted transferees; provided, however,
                                            that the Underwriters shall benefit from the provisions set forth in paragraphs 3 and 7,
                                            which such paragraphs shall not be amended or modified without the written consent of the
                                            Representatives.

 

		17.	This
                                            Letter Agreement may be executed in any number of original or facsimile counterparts and
                                            each of such counterparts shall for all purposes be deemed to be an original, and all such
                                            counterparts shall together constitute but one and the same instrument.

 

		18.	This
                                            Letter Agreement shall be deemed severable, and the invalidity or unenforceability of any
                                            term or provision hereof shall not affect the validity or enforceability of this Letter Agreement
                                            or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable
                                            term or provision, the parties hereto intend that there shall be added as a part of this
                                            Letter Agreement a provision as similar in terms to such invalid or unenforceable provision
                                            as may be possible and be valid and enforceable.

 

		19.	This
                                            Letter Agreement shall be governed by and construed and enforced in accordance with the laws
                                            of the State of New York. The parties hereto (i) all agree that any action, proceeding, claim
                                            or dispute arising out of, or relating in any way to, this Letter Agreement shall be brought
                                            and enforced in the courts of New York City, in the State of New York, and irrevocably submit
                                            to such jurisdiction and venue, which jurisdiction and venue shall be exclusive and (ii)
                                            waive any objection to such exclusive jurisdiction and venue or that such courts represent
                                            an inconvenient forum.

 

		20.	Any
                                            notice, consent or request to be given in connection with any of the terms or provisions
                                            of this Letter Agreement shall be in writing and shall be sent by express mail or similar
                                            private courier service, by certified mail (return receipt requested), by hand delivery or
                                            facsimile transmission.

 

		21.	This
                                            Letter Agreement shall terminate on the earlier of (i) the expiration of the Lock-up Periods
                                            or (ii) the liquidation of the Company; provided, however, that this Letter Agreement shall
                                            earlier terminate in the event that the Public Offering is not consummated and closed by
                                            December 31, 2021; provided further that paragraph 4 of this Letter Agreement shall survive
                                            such liquidation.

 

[Signature
Page Follows]

 

    5

     

    

 

	 	Sincerely,
	 	ION HOLDINGS 3, LP
	 	By its General Partner ION ACQUISITION CORP GP LTD.
	 	 	 	 
	 	By:	/s/ Anthony Reich
	 	 	Name: 	Anthony Reich
	 	 	Title:	Authorized Signatory

 

	 	/s/
                                            Jonathan Kolber

    

	 	Name: Jonathan Kolber
	 	 
	 	/s/
                                            Gilad Shany

    

	 	Name: Gilad Shany
	 	 
	 	/s/
                                            Avrom Gilbert

    

	 	Name: Avrom Gilbert
	 	 
	 	/s/
                                            Anthony Reich

    

	 	Name: Anthony Reich
	 	 
	 	/s/
                                            Ofer Katz

    

	 	Name: Ofer Katz
	 	 
	 	/s/
                                            Tzipi Ozer-Armon

    

	 	Name: Tzipi Ozer-Armon

 

	Acknowledged and Agreed:	 
	ION Acquisition Corp 3 Ltd.	 
	 	 	 	 
	By:	/s/ Anthony Reich	 
		Name: 	Anthony Reich	 
		Title:	Chief Financial Officer	 

 

Signature
Page to Letter Agreement

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