Document:

Exhibit

PLANTRONICS, INC.
TRANSITION AGREEMENT
This Transition Agreement (“Transition Agreement”) is made by and between Richard R. Pickard (“Executive”) and Plantronics, Inc. (the “Company”) collectively referred to as the “Parties,” as of September 6, 2016 (the “Transition Period Commencement Date”):
RECITALS
WHEREAS, Executive is employed by the Company as Vice President, Legal, General Counsel and Secretary pursuant to the terms of an offer letter between Executive and the Company dated May 31, 2001 and an employment agreement between Executive and the Company signed July 6, 2001 and Executive and the Company have entered into a Change of Control Severance Agreement effective as of July 1, 2014 (the “Change of Control Agreement”);
WHEREAS, Executive will be stepping down from his role as Vice President, Legal, General Counsel and Secretary effective October 2, 2016 (the “Transition Date”); 
WHEREAS, the Company desires to have Executive remain employed following the Transition Date to help his successor transition into Executive’s role, to help to manage the antitrust litigation with GN Netcom and to provide additional services to the Company as may be mutually agreed;
WHEREAS, if Executive remains employed with the Company through the Transition Date, then Executive will be entitled to the severance benefits set forth in Section 2 below, subject to Executive executing and not revoking the Supplemental Separation Agreement attached hereto as Exhibit A (the “Supplemental Separation Agreement”), in accordance with the terms below; and
WHEREAS, the Parties, and each of them, wish to set forth the terms of Executive’s continued employment through his separation from the Company and to resolve any and all disputes, claims, complaints, grievances, charges, actions, petitions and demands that Executive may have against the Company as defined herein.
NOW THEREFORE, in consideration of the promises made herein, the Parties hereby agree as follows:
COVENANTS
1.    Transition; Compensation and Benefits During the Transition Period; Compensation and Benefits During the Continuing Employment Period; Termination Date; Employment Status.
(a)    Transition.  From the Transition Period Commencement Date through the Transition Date (the “Transition Period”), the Parties agree that Executive will continue to be employed pursuant to the current terms of his employment, as amended by this Transition Agreement.  Prior to the Transition Date, Executive will continue in his role as Vice President, Legal, General Counsel and Secretary on a full-time basis, continuing to report to Pam Strayer, Senior Vice President and Chief Financial Officer.  Effective as of the Transition Date, Executive will be deemed to have resigned from his position as Vice President, Legal, General Counsel and Secretary and officer of 

the Company, and from any director or officer positions with respect to any subsidiaries of the Company.  Executive agrees to execute any documents as necessary or desirable to effect any such resignations.  Following the Transition Date and through the Actual Termination Date (the “Continuing Employment Period”), Executive shall remain employed by the Company on a part-time basis, engaging in activities relating to the transition of his duties as Vice President, Legal, General Counsel and Secretary to his successor, as well as providing services relating to the GN Netcom antitrust litigation and any other matters that the parties may mutually agree upon, reporting to Pam Strayer, Senior Vice President and Chief Financial Officer.  During the Continuing Employment Period, it is anticipated that Executive will work an approximate 33% work schedule.  Given the nature of a part-time work schedule, the Parties agree to work in good faith to coordinate the time during which Executive will provide services hereunder and the Company acknowledges that Executive will have personal and other obligations outside of his duties and obligations hereunder that may constrain the times during which he will be able to provide services hereunder.
(b)    Indemnification.  During the Transition Period Executive will continue to have rights to indemnification to the maximum extent permitted under the Company’s Articles of Incorporation or Bylaws, pursuant to contract, and applicable law.  During the Continuing Employment Period Executive will continued to have the same rights to indemnification as applied to him during the Transition Period.
(c)    Compensation and Benefits During the Transition Period.
(i)    During the Transition Period, the Company will continue to pay Executive as compensation for his services his current base salary at the annualized rate of $385,800 (the “Current Base Salary”).  The Current Base Salary will be paid in accordance with the Company’s normal payroll practices and be subject to the usual, required withholding.  
(ii)    During the Transition Period and subject to Section 2(c) of this Agreement, Executive will not be eligible to participate in any bonus plan or program sponsored by the Company and it is the Parties expectation that Executive will not be granted any new equity awards during the Transition Period.
(iii)    Following the Transition Period Commencement Date, Executive’s outstanding equity awards will continue to vest during the period Executive provides employment or consulting services to the Company, subject to the terms and conditions of the equity incentive plan and the equity award agreement under which each such equity award was granted.  The Parties acknowledge and agree that there will be no break in Executive’s service to the Company between the Transition Date and the commencement of the Continuing Employment Period.
(iv)    During the Transition Period, Executive will continue to be entitled to participate in the employee benefit plans currently and hereafter maintained by the Company of general applicability to other executive officers of the Company, except with respect to participation in the bonus arrangements and equity program referred to in Section 1(c)(ii) above, subject to the satisfaction of any eligibility requirements.  Executive’s health insurance benefits (including medical, dental and vision) will cease on the last day of October 2016 (or, if earlier, on the last day of the month in which the Actual Termination Date as defined in Section 1(e) below occurs), subject to Executive’s right to continue his health insurance under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”).    During the Transition Period, Executive 

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will continue to be subject to the Company’s Exempt Time Off program as then in effect and will not accrue vacation pursuant to the terms of that program.  The Company reserves the right to cancel or change any benefit plans and programs it offers to its officers or employees at any time.  
(v)    During the Transition Period, Executive will continue to be eligible for the benefits set forth in the Change of Control Agreement upon the terms set forth therein.  Following the Transition Date, Executive will not be entitled to receive any severance or other benefits pursuant to the terms of the Change of Control Agreement.
(d)    Compensation and Benefits During the Continuing Employment Period.
(i)    During the Continuing Employment Period, the Company will pay Executive as compensation for his services a base salary at the annualized rate of $120,000 (the “Continuing Base Salary”).  The Continuing Base Salary will be paid periodically in accordance with the Company’s normal payroll practices and be subject to the usual, required withholding.
(ii)    During the Continuing Employment Period, Executive will not be eligible to participate in any bonus plan or program sponsored by the Company and it is the Parties expectation that Executive will not be granted any new equity awards during the Continuing Employment Period.
(iii)    Executive’s equity awards will continue to vest during the Continuing Employment Period in accordance with the applicable vesting schedule(s) and the terms and conditions of the equity incentive plan and the equity award agreement under which such equity awards were granted.  Upon the Actual Termination Date, Executive’s outstanding equity awards will vest as to the number of shares subject to such awards  that would have otherwise vested through the Actual Termination Date as if the equity awards were vesting on the monthly anniversary of the vesting commencement date applicable to each such award as to a pro-rata number of shares based on the length of the term of the original vesting schedule, less the number of shares subject to such awards that have previously vested pursuant to the awards’ respective original vesting schedules.  Following the Actual Termination Date, and after giving effect to the vesting referenced in this Section 1(d)(iii), any unvested equity awards will terminate.  
By way of example only, if Executive had been granted an award of 4,800 shares of restricted stock on January 1, 2015, which vested as to 1,200 shares on January 1 of 2016, 2017, 2018 and 2019, respectively, then assuming the Actual Termination Date is June 1, 2017, then, subject to the other terms and conditions of this Agreement, the restricted stock award would vest as to an additional 500 shares (that is, the restricted stock award will be considered to have vested as to 100 shares on the first day of each calendar month following the vesting commencement date applicable to such award).
(iv)    During the Continuing Employment Period, Executive will continue to be entitled to participate in the employee benefit plans currently and hereafter maintained by the Company of general applicability to other employees of the Company, subject to the satisfaction of any eligibility requirements, provided that he will not be eligible to participate in any bonus plan or program sponsored by the Company and it is the Parties expectation 

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that Executive will not be granted any new equity awards during the Continuing Employment Period.  Executive understands the Company’s employee benefit plans have minimum hour requirements for eligibility to participate and under their current terms, Executive will not be eligible to participate in the following Company employee benefit plans based on his reduced work schedule during the Continuing Employment Period: medical, dental, vision, health flexible spending account (with respect to additional contributions only), 401(k) Plan (with respect to additional contributions only and beginning January 1, 2017), basic life and basic accidental death and dismemberment insurance coverage.  The Company reserves the right to cancel or change any benefit plans and programs it offers to its officers or employees at any time and the Company is under no obligation to modify its existing employee benefit plans or adopt new employee benefit plans to provide Executive continuing employee benefits coverage.  During the Continuing Employment Period, Executive will continue to be subject to the Company’s Exempt Time Off program as then in effect and will not accrue vacation pursuant to the terms of that program.  
(e)    Termination Date.  Executive’s termination date will occur on a date to be agreed upon between Executive and the Company, or earlier as provided in Section 1(f) (the date of Executive’s actual termination of employment with the Company, the “Actual Termination Date”).
(f)    Employment Status.  Executive is free to terminate his employment at any time prior to the Actual Termination Date, for any reason or for no reason.  Similarly, the Company is free to terminate Executive’s employment at any time prior to the Actual Termination Date, for any reason or for no reason.  
2.    Cash Payments.  If Executive remains employed with the Company through the Transition Date or dies or becomes Disabled prior to the Transition Date, then, subject to Executive (or his personal representative or estate) executing and not revoking the Supplemental Separation Agreement, which must (i) be executed on or following the Transition Date, and (ii) become effective and irrevocable no later than the sixtieth (60th) day following the Transition Date (the “Supplemental Release Deadline”), Executive (or his personal representative or estate) will receive the following:
(a)    A lump sum payment equal to $385,800, which represents twelve (12) months of Executive’s Current Base Salary, less applicable withholdings, payable within ten (10) calendar days following the effective date of the Supplemental Separation Agreement; 
(b)    A lump sum payment equal to $8,280, which represents twelve (12) months of Executive’s automobile allowance, less applicable withholdings, payable within ten (10) calendar days following the effective date of the Supplemental Separation Agreement;
(c)    A lump sum payment, less applicable withholdings, equal to the bonus Executive would have otherwise been eligible to receive under the Company’s 2017 Associate Incentive Plan, assuming he had remained employed with the Company through the bonus payment date and assuming performance goals were achieved at target levels under the Company’s 2017 Associate Incentive Plan (the “2017 Bonus Amount”).  The actual amount of the 2017 Bonus Amount to be paid to Executive will be prorated and will be determined by multiplying (x) the 2017 Bonus Amount by (y) a fraction, the numerator of which is the number of days that have passed since the commencement of the 2017 fiscal year through the Transition Date and the denominator of which is 365. For avoidance of doubt, if Executive remains employed to the Transition Date Executive 

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will have worked for two of the four quarters of the Company’s fiscal year and shall be entitled to half of his target bonus or $96,450 payable at the same time as bonuses are paid to other senior executives of the Company, but in no event (i) prior to the date the Supplemental Separation Agreement becomes effective and irrevocable, and (ii) after the fifteenth day of the third month following the end of the Company’s 2017 taxable year.
(d)    A lump sum payment equal to 150% of: (A) the monthly premium that Executive would be required to pay to continue Executive’s group plan coverage under COBRA at the rates in effect on the date of the Transition Date, multiplied by (B) twelve (12), which payment will be made regardless of whether Executive elects COBRA continuation coverage, less applicable withholdings, payable within ten (10) calendar days following the effective date of the Supplemental Separation Agreement.
(e)    A lump sum payment equal to $11,574, which represents the Company contribution Executive would have been entitled to receive under the Company’s 401(k) Plan, less applicable withholdings, payable within ten (10) calendar days following the effective date of the Supplemental Separation Agreement.
(f)    For these purposes of this Section 2, Executive will be considered to have become “Disabled” if he is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months.  
(g)    If the Supplemental Separation Agreement does not become effective and irrevocable by the Supplemental Release Deadline, Executive will forfeit any right to severance payments or benefits under this Transition Agreement.  In no event will severance payments or benefits be paid or provided until the Supplemental Separation Agreement actually becomes effective and irrevocable. Any severance payments that would have been made to Executive prior to the Supplemental Separation Agreement becoming effective and irrevocable will be paid to Executive no later than the first Company payroll date on or following the Supplemental Release Deadline and the remaining payments will be made as provided in this Transition Agreement.  
(h)    For avoidance of doubt, (A) if Executive resigns from or otherwise voluntarily terminates his employment with the Company for any reason prior to the Transition Date, he will not be entitled to any severance payments pursuant to this Section 2 or otherwise, and (B) Executive’s rights and entitlements to payments under this Section 2 are not conditioned or otherwise subject to Executive providing services to the Company following the Transition Date.
3.    Salary & Other Compensation Acknowledgments.  Executive acknowledges and represents that the Company has paid Executive all salary, wages, bonuses, commissions and any and all other compensation and benefits (in cash, equity or otherwise) due to Executive through the date hereof, except for Executive’s outstanding equity awards as set forth on Exhibit B, which will continue to be governed by their applicable terms (including vesting) following the date hereof.  Executive acknowledges and agrees that he has not and will not accrue any vacation through the Effective Date.  For avoidance of doubt, nothing in this Section 3 is intended to reduce the payments the Company is required to pay Executive as provided under Sections 1 through 2 of this Agreement.  For avoidance of doubt, Executive will be entitled to receive all benefit entitlements vested and non-forfeitable as of the Transition Date, pursuant to written terms of any applicable employee 

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benefit plan sponsored by the Company and to the extent that Executive continues to have account balances in any such plans after the Transition Date, Executive shall be entitled to receive the value of those account balances to be paid or otherwise distributed in accordance with the terms and conditions of such plans and applicable elections made by Executive with respect thereto.
4.    Release of Claims.  Executive hereby fully, forever, irrevocably and unconditionally releases and discharges the Company, its current and former officers, directors, stockholders, corporate affiliates, subsidiaries, insurers, parent companies, successors and assigns, agents and employees (each in their individual and corporate capacities) (hereinafter the “Released Parties”) from any and all claims, charges, complaints, demands, causes of action, liabilities, and expenses (including attorneys’ fees and costs), of every kind and nature that Executive ever had or now has against the Released Parties, including, but not limited to, all employment discrimination claims under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., the Age Discrimination in Employment Act, the Americans With Disabilities Act of 1990, 42 U.S.C. § 12101 et seq., the Rehabilitation Act of 1973, 29 U.S.C. § 701 et seq., Family and Medical Leave Act, 29 U.S.C. § 2601 et seq., the California Fair Employment and Housing Act, Cal. Gov’t Code § 12900 et seq., the California Family Rights Act, Cal. Gov’t Code § 12945.2 and § 19702.3, the California Equal Pay Law, Cal. Labor Code § 1197.5 et seq., the California Unruh Civil Rights Act, Cal. Civil Code § 51 et seq. and the California Family and Medical Leave Law, Cal. Labor Code §§ 233, 7291.16 and 7291.2, all as amended, and all claims arising out of the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq. and the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq., all as amended, and all common law claims including, but not limited to, actions in tort, defamation and breach of contract, including, but not limited to, any claim or damage arising out of Executive’s employment with and/or separation from the Company (including a claim for retaliation) under any common law theory or any federal, state or local statute or ordinance not expressly referenced above, and claims for wrongful discharge, breach of contract, breach of the covenant of good faith and fair dealing, violation of public policy, defamation, fraud, personal injury, and emotional distress; provided, however, that nothing in Transition Agreement prevents Executive from bringing any claims relating to the validity of this Transition Agreement, or from filing, cooperating with, or participating in any proceeding before the EEOC or a state Fair Employment Practices Agency (except that Executive acknowledges that he may not be able to recover any monetary benefits in connection with any such claim, charge or proceeding) or from bringing any rights or claims under the Age Discrimination in Employment Act of 1967 (29 U.S.C. § 621 et seq.) that may arise after the date this Transition Agreement is signed.  The only exceptions to this release are any claim(s) Executive may have for:
(a)    unemployment benefits pursuant to the terms of applicable law (to the extent available to Executive under applicable law);
(b)    workers’ compensation insurance benefits pursuant to Division 4 of the California Labor Code or a comparable and applicable state law, under the terms of any worker’s compensation insurance policy or fund of the Company (for which Executive represents that he has reported all work-related injuries, if any, that Executive has suffered or sustained during his employment with the Company; 

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(c)    continued participation in certain of the Company’s group health benefit plans pursuant to the terms and conditions of the federal law known as “COBRA,” if applicable, and/or any applicable state law counterpart to COBRA; 
(d)    any benefit entitlements vested as of the Actual Termination Date, pursuant to written terms of any applicable employee benefit plan sponsored by the Company;
(e)    indemnification protection under the Company’s Articles of Incorporation or Bylaws, pursuant to contract or applicable law; and
(f)    any claims that, as a matter of applicable law, are not waivable.
5.    Waiver of Unknown Claims.  Executive understands and agrees that the claims released in Section 4 above include not only claims presently known to Executive, but also include all unknown or unanticipated claims, rights, demands, actions, obligations, liabilities, and causes of action of every kind and character that would otherwise come within the scope of the released claims as described in Section 4.  Executive understands that he may hereafter discover facts different from what he now believes to be true, which if known, could have materially affected this Transition Agreement, but Executive nevertheless waives any claims or rights based on different or additional facts.  Executive knowingly and voluntarily waives any and all rights or benefits that he may now have, or in the future may have, under the terms of Section 1542 of the Civil Code of the State of California, which provides as follows:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH A CREDITOR DOES NOT KNOW OF OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.
6.    Confidential Information and Non-Solicitation.  Executive acknowledges and reaffirms his obligation to keep confidential all non-public information concerning the Company that Executive acquired during the course of his employment with the Company, as stated more fully in the Employee Patent, Secrecy and Invention Agreement dated July 6, 2001 (“Confidentiality Agreement”), which remains in full force and effect.  Executive affirms his obligation to keep all Company information confidential and not to disclose it to any third party in the future.  The Confidentiality Agreement is incorporated herein by this reference, and Executive agrees to continue to be bound by the terms of that Confidentiality Agreement.
7.    Acknowledgments and Right to Revoke.  Executive acknowledges that he has been given twenty-one (21) days after receipt of this Transition Agreement to consider this Transition Agreement.  By signing this Transition Agreement, Executive acknowledges that he was offered a period of at least twenty-one (21) days to consider the terms of this Transition Agreement but, to the extent not taken, Executive chooses to waive this consideration period.  If Executive does not accept this Transition Agreement within that time, it will become null and void.  Executive is advised to consult with an attorney prior to executing this Transition Agreement.  Executive represents and agrees that he fully understands his right to discuss all aspects of this Transition Agreement with his private attorney, that he has availed himself of this right, that he has carefully read and fully understands all of the provisions of this Transition Agreement, and that he is voluntarily entering 

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into this Transition Agreement.  Executive understands and agrees that the waiver of rights contained in this Transition Agreement is only an exchange for the consideration specified herein, and that he would not otherwise be entitled to such consideration. Once Executive has signed the Transition Agreement, Executive can revoke his acceptance within seven (7) days by so notifying InaMarie Johnson, Human Resources, 345 Encinal Street, Santa Cruz, California 95060.  Fax number: 831-426-0136. This Transition Agreement will become effective on the eighth day following Executive signing it (the “Effective Date”).  
8.    Non-Disparagement.  Executive understands and agrees that as of the Transition Period Commencement Date he shall not make any false, disparaging or derogatory statements to any media outlet, industry group, financial institution or current or former employee, consultant, client, customer of the Company or other person or entity regarding the Company or any of its directors, officers, employees, agents or representatives or about the Company’s business affairs and financial condition.  The Company agrees as of the Transition Period Commencement Date to refrain from making any disparaging statements about Executive.  Executive understands that the Company’s obligations under this paragraph extend only to the Company’s current executive officers and members of its Board of Directors and only for so long as each officer or member is an employee or director of the Company.
9.    Amendment.  This Transition Agreement shall be binding upon the parties and may not be modified in any manner, except by an instrument in writing of concurrent or subsequent date signed by duly authorized representatives of the Parties.  
10.    Binding Agreement.  This Transition Agreement is binding upon and shall inure to the benefit of the Parties and their respective heirs, executors, administrators, agents, successors and assigns. 
11.    Waiver of Rights.  No delay or omission by the Company in exercising any right under this Transition Agreement shall operate as a waiver of that or any other right.  A waiver or consent given by the Company on any one occasion shall be effective only in that instance and shall not be construed as a bar to or waiver of any right on any other occasion.
12.    Severability.  If any provision in this Transition Agreement is for any reason held to be unenforceable, it shall not affect the enforceability of the remaining provisions and the remaining provisions shall be enforced to the extent permitted by law.
13.    Nature of Agreement.  Executive understands and agrees that this Transition Agreement is not intended, nor should it be construed at any time, to be an admission of liability or wrongdoing on the part of the Company.
14.    Protected Activity Not Prohibited:  Executive understands that nothing in this Agreement or the Confidentiality Agreement shall in any way limit or prohibit Executive from engaging for a lawful purpose in any Protected Activity.  For purposes of this Transition Agreement and the Confidentiality Agreement, “Protected Activity” shall mean filing a charge or complaint, or otherwise communicating, cooperating, or participating with, any state, federal, or other governmental agency, including the Securities and Exchange Commission, the Equal Employment Opportunity Commission, and the National Labor Relations Board.  Notwithstanding any restrictions set forth in this Transition Agreement or the Confidentiality Agreement, Executive 

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understands that he is not required to obtain authorization from the Company prior to disclosing information to, or communicating with, such agencies, nor is Executive obligated to advise the Company as to any such disclosures or communications.  Notwithstanding, in making any such disclosures or communications, Executive agrees to take all reasonable precautions to prevent any unauthorized use or disclosure of any information that may constitute Company confidential information under the Confidentiality Agreement to any parties other than the relevant government agencies.  Executive further understands that “Protected Activity” does not include the disclosure of any Company attorney-client privileged communications, and that any such disclosure without the Company’s written consent shall constitute a material breach of this Transition Agreement and the Confidentiality Agreement. In addition, pursuant to the Defend Trade Secrets Act of 2016, Executive is notified that an individual will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made in confidence to a federal, state, or local government official (directly or indirectly) or to an attorney solely for the purpose of reporting or investigating a suspected violation of law. In addition, an individual will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding, if (and only if) such filing is made under seal. An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order.
15.    Voluntary Assent.  Executive affirms that no other promises or agreements of any kind have been made to or with Executive by any person or entity whatsoever to cause Executive to sign this Transition Agreement, and that Executive fully understands the meaning and intent of this Transition Agreement.  Executive further states and represents that he has carefully read this Transition Agreement, understands the contents herein, freely and voluntarily assents to all of the terms and conditions hereof, and signs his name of his own free act.
16.    Applicable Law.  This Transition Agreement shall be interpreted and construed by the laws of the State of California, without regard to conflict of laws provisions.  
17.    Attorneys’ Fees.  In the event of any dispute concerning this Transition Agreement, the prevailing party will be entitled to recover its attorneys’ fees and costs, in addition to any other relief to which such party may be entitled.
18.    Taxes.  All payments made pursuant to this Agreement will be subject to any applicable tax withholdings.  The Company makes no representations or warranties with respect to the tax consequences of the payments and any other consideration provided to Executive or made on his behalf under the terms of this Agreement.  Executive agrees and understands that he is responsible for payment, if any, of local, state, and/or federal taxes on the payments and any other consideration provided hereunder by the Company and any penalties or assessments thereon.  
19.    Entire Agreement.  This Transition Agreement contains and constitutes the entire understanding and agreement between the Parties with respect to Executive’s severance benefits and the settlement of claims against the Company and cancels all previous oral and written negotiations, agreements and commitments in connection therewith.  Nothing in this Section, 

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however, shall modify, cancel or supersede Executive’s obligations set forth in Section 6 herein or the documents identified in Section 6.
20.    Arbitration.  The Parties agree that any and all disputes arising out of the terms of this Transition Agreement and their interpretation, and any of the matters released, shall be subject to final and binding arbitration before the American Arbitration Association under its National Rules for the Resolution of Employment Disputes in Santa Clara County, California.  THE PARTIES HEREBY AGREE TO WAIVE THEIR RIGHT TO HAVE ANY DISPUTE BETWEEN THEM RESOLVED IN A COURT OF LAW BY A JUDGE OR JURY.  This Section will not prevent either party from seeking preliminary injunctive relief (or any other provisional remedy) under applicable law from any court having jurisdiction over their Parties and the subject matter of their dispute relating to their obligations under this Transition Agreement or under the Confidentiality Agreement before arbitration or while arbitration is pending.

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IN WITNESS WHEREOF, the Parties have executed this Transition Agreement on the respective dates set forth below.
	
			
	Dated: September 6, 2016
	By
	 

	 
	 
	S. Kenneth Kannappan

	 
	 
	Chief Executive Officer

	 
	 
	 

	Dated: September 6, 2016
	By
	 

	 
	 
	Richard R. Pickard, an individual

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

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EXHIBIT A
SUPPLEMENTAL SEPARATION AGREEMENT
This Supplemental Separation Agreement (the “Supplemental Separation Agreement”) is entered into as of _____________________, by and between Plantronics, Inc. (the “Company”) and Richard R. Pickard (“Executive”) (collectively, the “Parties”).  Any terms capitalized and not specifically defined herein shall have the meaning ascribed to them under the Transition Agreement, dated September 6, 2016 (the “Transition Agreement”).
WHEREAS, the Parties wish to resolve any and all disputes, claims, complaints, grievances, charges, actions, petitions, and demands that Executive may have against the Company and any of the Releasees, including, but not limited to, any and all claims arising out of or in any way related to Executive’s employment with and services to the Company, including, but not limited to, from the Effective Date of the Transition Agreement through the Effective Date of this Supplemental Separation Agreement.
NOW, THEREFORE, in consideration of the mutual promises made herein, the Company and Executive hereby agree as follows:
1.    Consideration.  The Company agrees to pay Executive, less applicable withholding, the payments described in Section 2 of the Transition Agreement, pursuant to the terms and conditions thereof.
2.    Acknowledgments and Agreements.  
a.    Executive acknowledges and represents that the Company will have paid all salary, wages, bonuses, commissions and any and all other benefits due to Executive as of the Effective Date of this Supplemental Separation Agreement.  Executive further acknowledges that he has not and will not accrue any vacation as of the Effective Date of this Supplemental Separation Agreement.  For avoidance of doubt, Executive will be entitled to receive all benefit entitlements vested and non-forfeitable as of the Transition Date, pursuant to written terms of any applicable employee benefit plan sponsored by the Company and to the extent that Executive continues to have account balances in any such plans after the Transition Date, Executive shall be entitled to receive the value of those account balances to be paid or otherwise distributed in accordance with the terms and conditions of such plans and applicable elections made by Executive with respect thereto.
b.    Each of Executive’s equity awards shall continue to be governed by the terms and conditions of the applicable Company equity plan under which the award was granted and applicable equity award agreement, as amended by the Transition Agreement (each an “Equity Award Document”, and together, the “Equity Award Documents.”)
3.    Release of Claims.  Executive agrees that the consideration described in Section 1 hereof represents consideration for both (A) Executive’s acknowledgements and agreements under Section 2 and (B) a release and waiver of any and all claims against the Company and any of the Releasees relating to his employment with the Company, including, but not limited to, from the Effective Date of the Transition Agreement through the Effective Date of this Supplemental 

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Separation Agreement, as well as any claims under any local ordinance or state or federal employment law, including laws prohibiting discrimination in employment on the basis of race, sex, age (in particular, any claim under the Age Discrimination in Employment Act), disability, national origin, or religion, as well as any claims for wrongful discharge, breach of contract, attorneys’ fees, costs, or any claims of amounts due for fees, commissions, stock options, expenses, salary, bonuses, profit sharing or fringe benefits.  Executive further acknowledges and agrees that the terms of Sections 4 and 5 of the Transition Agreement shall also apply to this Supplemental Separation Agreement and are hereby incorporated and extended through the Effective Date of this Supplemental Separation Agreement.
4.    Confidential Information and Non-Solicitation.  Executive acknowledges and reaffirms his obligation to keep confidential all non-public information concerning the Company that Executive acquired during the course of his employment with the Company, as stated more fully in the Confidentiality Agreement Executive signed at the beginning of his employment, which remains in full force and effect.  Executive affirms his obligation to keep all Company information confidential and not to disclose it to any third party in the future.  The Confidentiality Agreement is incorporated herein by this reference, and Executive agrees to continue to be bound by the terms of the Confidentiality Agreement.
5.    Return of Company Property.  As part of Executive’s existing and continuing obligation to the Company, Executive agrees that as of the Actual Termination Date, Executive will return to the Company, all Company information, including files, records, computer access codes and instruction manuals, as well as any Company assets or equipment that Executive has in his possession or under his control.  Executive further agrees not to keep any copies of Company information.  Executive confirms that as of the Actual Termination Date he will return to the Company in good working order all keys, files, records (and copies thereof), equipment (including, but not limited to, computer hardware, software and printers, wireless handheld devices, cellular phones and pagers), access or credit cards, Company identification, Company vehicles and any other Company-owned property in Executive’s possession or control and will leave intact all electronic Company documents, including, but not limited to, those that Executive developed or helped to develop during his employment.  Executive further confirms that he has canceled all accounts for his benefit, if any, in the Company’s name, including, but not limited to, credit cards, telephone charge cards, cellular phone and/or pager accounts and computer accounts.  Notwithstanding the foregoing and on the Actual Termination Date, the ownership of Executive’s Company issued laptop computer will be deemed to have transferred from the Company to Executive, provided that (1) Executive shall promptly make the laptop computer available to the Company so that the Company may make a copy of any Company-related materials housed on such laptop, and (2) promptly following the Actual Termination Date, Executive agrees to promptly make the laptop computer available to the Company for the purpose of scrubbing any confidential Company information from such laptop computer.  The fair value the laptop computer will be taxable compensation that the Company will report on Executive’s W-2 and any tax withholding will be taken and subtracted from any payments due to Executive under Section 2 of the Transition Agreement.  For purposes of clarification, the iPhone 6 plus used by Executive as of the Effective Date of the Transition Agreement remains Executive’s personal property.
6.    Acknowledgments and Right to Revoke.  Executive acknowledges that he has been given twenty-one (21) days after receipt of this Supplemental Separation Agreement to consider 

-13-

this Supplemental Separation Agreement and the date of receipt for purposes of the Supplemental Separation Agreement will be the Transition Date.  By signing this Supplemental Separation Agreement, Executive acknowledges that he was offered a period of at least twenty-one (21) days to consider the terms of this Supplemental Separation Agreement but, to the extent not taken, Executive chooses to waive this consideration period.  If Executive does not accept this Supplemental Separation Agreement within that time, it will become null and void.  Executive is advised to consult with an attorney prior to executing this Supplemental Separation Agreement.  Executive represents and agrees that he fully understands his right to discuss all aspects of this Supplemental Separation Agreement with his private attorney, that he has availed herself of this right, that he has carefully read and fully understands all of the provisions of this Supplemental Separation Agreement, and that he is voluntarily entering into this Supplemental Separation Agreement.  Executive understands and agrees that the waiver of rights contained in this Supplemental Separation Agreement is only an exchange for the consideration specified herein, and that he would not otherwise be entitled to such consideration. Once Executive has signed the Supplemental Separation Agreement, Executive can revoke his acceptance within seven (7) days by so notifying InaMarie Johnson, Human Resources, 345 Encinal Street, Santa Cruz, California 95060.  Fax number: 831-426-0136. This Supplemental Separation Agreement will become effective on the eighth day following Executive signing it (the “Effective Date”).
7.    Entire Agreement.  This Supplemental Separation Agreement, the Equity Award Documents, the Transition Agreement and the Confidentiality Agreement, constitute the entire agreement and understanding between the Parties concerning the subject matter of this Supplemental Separation Agreement and all prior and contemporaneous representations, understandings, and agreements concerning the subject matter of this Supplemental Separation Agreement (other than the Confidentiality Agreement) have been superseded by the terms of this Supplemental Separation Agreement.

-14-

IN WITNESS WHEREOF, the Parties have executed this Supplemental Separation Agreement on the respective dates set forth below.

Dated:  _______________    By             
                              [NAME]
[TITLE]
              
        
                Richard R. Pickard, an individual

Dated:  _____________    By             

-15-

	
																											
	PLANTRONICS INC
	 
	 
	 
	PERSONNEL VESTING SUMMARY
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	AS OF 09/06/2016
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	Market Value: $0.0
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	Report Type:   Awards
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	Dividends : Yes
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	Dividend Details : No
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	Status : Active
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	Participant ID is 2411
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	ID
	Type
	Grant
Number
	Grant
Date
	Plan
	Shares
	Price
	Total
Vested
	Total
Unvested
	Vest
Date 1
	Shares
Vesting 1
	Vest
Date 2
	Shares
Vesting 2
	Vest
Date 3
	Shares
Vesting 3
	Vest
Date 4
	Shares
Vesting 4

	2411
	RSA
	8,564
	

	10/19/2005
	2003
	4,000
	

	$
	0.01
	

	4,000
	

	—
	

	11/10/2006
	800
	

	11/10/2007
	800
	

	11/10/2008
	800
	

	11/10/2009
	800
	

	 
	 
	20,178
	

	10/26/2007
	2003
	2,000
	

	$
	0.01
	

	2,000
	

	—
	

	11/10/2008
	500
	

	11/10/2009
	500
	

	11/10/2010
	500
	

	11/10/2011
	500
	

	 
	 
	24,542
	

	10/27/2008
	2003
	2,000
	

	$
	0.01
	

	2,000
	

	—
	

	11/10/2009
	500
	

	11/10/2010
	500
	

	11/10/2011
	500
	

	11/10/2012
	500
	

	 
	 
	27,728
	

	5/7/2010
	2003
	1,000
	

	$
	—
	

	1,000
	

	—
	

	5/10/2011
	250
	

	5/10/2012
	250
	

	5/10/2013
	250
	

	5/10/2014
	250
	

	 
	 
	29,732
	

	11/5/2010
	2003
	7,000
	

	$
	—
	

	7,000
	

	—
	

	11/10/2011
	1,750
	

	11/10/2012
	1,750
	

	11/10/2013
	1,750
	

	11/10/2014
	1,750
	

	 
	 
	30,790
	

	5/6/2011
	2003
	5,000
	

	$
	—
	

	5,000
	

	—
	

	5/6/2012
	1,250
	

	5/6/2013
	1,250
	

	5/6/2014
	1,250
	

	5/6/2015
	1,250
	

	 
	 
	31,809
	

	5/4/2012
	2003
	4,000
	

	$
	—
	

	4,000
	

	—
	

	5/4/2013
	1,000
	

	5/4/2014
	1,000
	

	5/4/2015
	1,000
	

	5/4/2016
	1,000
	

	 
	 
	33,339
	

	5/31/2013
	2003
	5,000
	

	$
	—
	

	5,000
	

	—
	

	5/31/2014
	1,667
	

	5/31/2015
	1,667
	

	5/31/2016
	1,666
	

	 
	 

	 
	 
	34,148
	

	5/2/2014
	2003
	5,500
	

	$
	—
	

	3,667
	

	1,833
	

	5/31/2015
	1,834
	

	5/10/2016
	1,833
	

	5/10/2017
	1,833
	

	 
	 

	 
	 
	35,407
	

	4/29/2015
	2003
	5,500
	

	$
	—
	

	1,834
	

	3,666
	

	5/10/2016
	1,834
	

	5/10/2017
	1,833
	

	5/10/2018
	1,833
	

	 
	 

	 
	 
	36,738
	

	5/6/2016
	2003
	3,000
	

	$
	—
	

	—
	

	3,000
	

	5/10/2017
	1,000
	

	5/10/2018
	1,000
	

	5/10/2019
	1,000
	

	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	TOTALS
	 
	 
	 
	35,501
	

	8,499
	

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

-16-Exhibit 10.1

 

POLAR POWER,
INC.

 

2016 OMNIBUS
INCENTIVE PLAN

 

    	 	 	 

     

    

 

TABLE OF
CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE I	DEFINITIONS	1
	 	 	 
	1.01	409A Award	1
	1.02	Affiliate	1
	1.03	Agreement	1
	1.04	Award	1
	1.05	Board	1
	1.06	Cash Award	1
	1.07	Cause	2
	1.08	Change in Control	2
	1.09	Code	3
	1.10	Committee	3
	1.11	Common Stock	4
	1.12	Company	4
	1.13	Control Change Date	4
	1.14	Corresponding SAR	4
	1.15	Disability	4
	1.16	Dividend Equivalent	4
	1.17	Exchange Act	5
	1.18	Fair Market Value	5
	1.19	Full Value Award	5
	1.20	Incentive Award	5
	1.21	Incumbent Board	5
	1.22	Initial Value	6
	1.23	Named Executive Officer	6
	1.24	Non-409A Award	6
	1.25	Option	6
	1.26	Other Stock-Based Award	6
	1.27	Participant	6
	1.28	Plan	6
	1.29	Person	7
	1.30	Restricted Stock Award	7
	1.31	Restricted Stock Unit	7
	1.32	Retirement	7
	1.33	SAR	7
	1.34	Ten Percent Shareholder	7
	1.35	Termination Date	8
	 	 	 
	ARTICLE II	PURPOSES	8
	 	 	 
	ARTICLE III	TYPES OF AWARDS	8
	 	 	 
	ARTICLE IV	ADMINISTRATION	8
	 	 	 

    	 	i 	 

     

    

 

	4.01	General Administration	8
	4.02	Delegation of Authority	9
	4.03	Indemnification of Committee	10
	 	 	 
	ARTICLE V	ELIGIBILITY	10
	 	 	 
	ARTICLE VI	COMMON STOCK SUBJECT TO PLAN	11
	 	 	 
	6.01	Common Stock Issued	11
	6.02	Aggregate Limit	11
	6.03	Individual Limit	12
	6.04	Share Counting	13
	 	 	 
	ARTICLE VII	OPTIONS	13
	 	 	 
	7.01	Grant	13
	7.02	Option Price	13
	7.03	Maximum Term of Option	13
	7.04	Exercise	14
	7.05	Payment	14
	7.06	Stockholder Rights	14
	7.07	Disposition of Shares	14
	7.08	No Liability of Company	15
	 	 	 
	ARTICLE VIII	SARS	15
	 	 	 
	8.01	Grant	15
	8.02	Maximum Term of SAR	15
	8.03	Exercise	15
	8.04	Settlement	15
	8.05	Stockholder Rights	16
	 	 	 
	ARTICLE IX	RESTRICTED STOCK AWARDS	16
	 	 	 
	9.01	Award	16
	9.02	Payment	16
	9.03	Vesting	16
	9.04	Maximum Restriction Period	17
	9.05	Stockholder Rights	17
	 	 	 
	ARTICLE X	RESTRICTED STOCK UNITS	17
	 	 	 
	10.01	Grant	17
	10.02	Earning the Award	18
	10.03	Maximum Restricted Stock Unit Award Period	18
	10.04	Payment	18
	10.05	Stockholder Rights	18
	 	 	 
	ARTICLE XI	INCENTIVE AWARDS	19
	 	 	 
	11.01	Grant	19
	11.02	Earning the Award	19

 

    	 	ii 	 

     

    

 

	11.03	Maximum Incentive Award Period	19
	11.04	Payment	19
	11.05	Stockholder Rights	20
	 	 	 
	ARTICLE XII	OTHER STOCK-BASED AWARDS	20
	 	 	 
	12.01	Other Stock-Based Awards	20
	12.02	Bonus Stock and Awards in Lieu of Other Obligations	20
	 	 	 
	ARTICLE XIII	DIVIDEND EQUIVALENTS AND CASH AWARDS	21
	 	 	 
	13.01	Dividend Equivalents	21
	13.02	Cash Awards	21
	 	 	 
	ARTICLE XIV	TERMS APPLICABLE TO ALL AWARDS	22
	 	 	 
	14.01	Written Agreement	22
	14.02	Nontransferability	22
	14.03	Transferable Awards	22
	14.04	Participant Status	23
	14.05	Change in Control	24
	14.06	Stand-Alone, Additional, Tandem and Substitute Awards	25
	14.07	Form and Timing of Payment; Deferrals	25
	14.08	Time and Method of Exercise	26
	14.09	Non U. S. Participants	27
	 	 	 
	ARTICLE XV	QUALIFIED PERFORMANCE-BASED COMPENSATION	27
	 	 	 
	15.01	Performance Conditions	27
	15.02	Establishing the Amount of the Award	28
	15.03	Earning the Award	28
	15.04	Performance Awards	29
	 	 	 
	ARTICLE XVI	ADJUSTMENT UPON CHANGE IN COMMON STOCK	29
	 	 	 
	16.01	General Adjustments	29
	16.02	No Adjustments	30
	16.03	Substitute Awards	30
	16.04	Limitation on Adjustments	30
	 	 	 
	ARTICLE XVII	COMPLIANCE WITH LAW AND APPROVAL OF REGULATORY BODIES	31
	 	 	 
	17.01	Compliance	31
	17.02	Postponement of Exercise or Payment	31
	17.03	Forfeiture or Reimbursement	32
	 	 	 
	ARTICLE XVIII	LIMITATION ON BENEFITS	32
	 	 	 
	ARTICLE XIX	GENERAL PROVISIONS	33
	 	 	 
	19.01	Effect on Employment and Service	33
	19.02	Unfunded Plan	33

 

    	 	iii 	 

     

    

 

	19.03	Rules of Construction	33
	19.04	Tax Withholding and Reporting	34
	19.05	Code Section 83(b) Election	34
	19.06	Reservation of Shares	34
	19.07	Governing Law	35
	19.08	Other Actions	35
	19.09	Repurchase of Common Stock	35
	19.10	Other Conditions	35
	19.11	Forfeiture Provisions	36
	19.12	Legends; Payment of Expenses	36
	19.13	Repricing of Awards	36
	19.14	Right of Setoff	37
	19.15	Fractional Shares	37
	19.16	Compensation Recoupment Policy	37
	 	 	 
	ARTICLE XX	CLAIMS PROCEDURES	37
	 	 	 
	20.01	Initial Claim	37
	20.02	Appeal of Claim	38
	20.03	Time to File Suit	38
	 	 	 
	ARTICLE XXI	AMENDMENT	38
	 	 	 
	21.01	Amendment of Plan	38
	21.02	Amendment of Awards	39
	 	 	 
	ARTICLE XXII	SECTION 409A PROVISION	39
	 	 	 
	22.01	Intent of Awards	39
	22.02	409A Awards	39
	22.03	Election Requirements	40
	22.04	Time of Payment	40
	22.05	Acceleration or Deferral	41
	22.06	Distribution Requirements	41
	22.07	Key Employee Rule	41
	22.08	Distributions Upon Vesting	42
	22.09	Scope and Application of this Provision	42
	 	 	 
	ARTICLE XXIII	EFFECTIVE DATE OF PLAN	42
	 	 	 
	ARTICLE XXIV	DURATION OF PLAN	42

 

    	 	iv 	 

     

    

 

ARTICLE I

DEFINITIONS

 

1.01       409A
Award

 

“409A Award”
means an Award that is intended to be subject to Code Section 409A.

 

1.02       Affiliate

 

“Affiliate,”
as it relates to any limitations or requirements with respect to incentive stock options, means any “subsidiary” or
“parent” corporation (as such terms are defined in Code Section 424) of the Company. Affiliate otherwise means any
entity that is part of a controlled group of corporations or is under common control with the Company within the meaning of Code
Sections 1563(a), 414(b) or 414(c), except that, in making any such determination, fifty percent (50%) shall be substituted for
eighty percent (80%) under such Code Sections and the related regulations.

 

1.03       Agreement

 

“Agreement” means
a written or electronic agreement (including any amendment or supplement thereto) between the Company and a Participant specifying
the terms and conditions of an Award granted to such Participant.

 

1.04       Award

 

“Award” means
an Option, SAR, Restricted Stock Award, Restricted Stock Unit, Incentive Award, Other Stock-Based Award, Dividend Equivalent or
Cash Award granted under this Plan.

 

1.05       Board

 

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

 

1.06       Cash
Award

 

“Cash Award”
means an Award stated with reference to a specified dollar amount which, subject to such terms and conditions as may be prescribed
by the Committee, entitles the Participant to receive cash from the Company or an Affiliate.

 

    	 	-1-	 

     

    

 

 

1.07       Cause

 

“Cause” means
“Cause” as such term is defined in any employment or service agreement between the Company or any Affiliate and the
Participant except as otherwise determined by the Committee and set forth in the applicable Agreement. If no such employment or
service agreement exists or if such employment or service agreement does not contain any such definition, except as otherwise determined
by the Committee and set forth in the applicable Agreement, “Cause” means (i) the Participant’s willful and continued
failure to comply with the lawful directives of the Board or any supervisory personnel of the Participant; (ii) any criminal
act or act of dishonesty or willful misconduct by the Participant that has a material adverse effect on the property, operations,
business or reputation of the Company or any Affiliate (willful for purposes of this definition, shall mean done, or omitted to
be done, by the Participant in bad faith and without reasonable belief that the Participant’s action or omission was in the
best interest of the Company or any Affiliate); (iii) the material breach by the Participant of the terms of any confidentiality,
non-competition, non-solicitation or other agreement that the Participant has with the Company or any Affiliate or of any duty
the Participant owes the Company or any Affiliate, (iv) acts by the Participant of willful malfeasance or gross negligence in a
matter of material importance to the Company or any Affiliate, (v) any act of fraud, embezzlement, theft, misappropriation or misuse
by the Participant of the funds or property of the Company or any Affiliate, (vi) any falsification by the Participant of any record
or report in connection with the Participant’s duties and obligations to the Company or any Affiliate, (vii) the Participant’s
sexual harassment of any other employees of the Company or any Affiliate, (viii) the breach by the Participant of any fiduciary
duty against the Company or any Affiliate, (ix) the Participant being indicted for a felony that has a material adverse effect
on the property, operations, business or reputation of the Company or any Affiliate or being convicted of any other felony or plea
of guilty or nolo contendre to any other felony or (x) any other action that may damage the image of the Company’s or an
Affiliate’s business or their or its standing in the industry, including but not limited to the possession, use or sale of
illegal drugs, the abuse of alcohol or prescribed medication, or any other act or omission which the Company or an Affiliate considers
to be a violation of Federal, state or local law or regulations other than a simple traffic violation.

 

1.08       Change
in Control

 

“Change
in Control” means the occurrence of any of the following events except as otherwise determined by the Committee and set forth
in the applicable Agreement:

 

(a)     The accumulation in any number
of related or unrelated transactions by any Person of beneficial ownership (as such term is used in Rule 13d-3 promulgated under
the Exchange Act) of more than fifty percent (50%) of the combined voting power of the Company's voting stock; provided that for
purposes of this subsection (a), a Change in Control will not be deemed to have occurred if the accumulation of more than fifty
percent (50%) of the voting power of the Company's voting stock results from any acquisition of voting stock (i) directly from
the Company that is approved by the Incumbent Board, (ii) by the Company, (iii) by any employee benefit plan (or related trust)
sponsored or maintained by the Company or any Affiliate, or (iv) by any Person pursuant to a merger, consolidation, reorganization
or other transaction (a “Business Combination”) that would not cause a Change in Control under subsections (b), (c)
or (d) below; or

 

(b)     Consummation
                                         of a Business Combination, unless, immediately following that Business Combination, (i)
                                         all or substantially all of the Persons who were the beneficial owners of the voting
                                         stock of the Company immediately prior to that Business Combination beneficially own,
                                         directly or indirectly, more than fifty percent (50%) of the then outstanding shares
                                         of common stock and more than fifty percent (50%) of the combined voting power of the
                                         then outstanding voting stock entitled to vote generally in the election of directors
                                         of the entity resulting from that Business Combination (including, without limitation,
                                         an entity that as a result of that Business Combination owns the Company or all or substantially
                                         all of the Company's assets either directly or through one or more subsidiaries) in substantially
                                         the same proportions relative to each other as their ownership, immediately prior to
                                         that Business Combination, of the voting stock of the Company, or

 

    	 	-2-	 

     

    

 

(c)     A sale or other disposition
of all or substantially all of the assets of the Company, except pursuant to a Business Combination that would not cause a Change
in Control under subsections (b) above or (d) below; or

 

(d)     A complete liquidation or dissolution
of the Company, except pursuant to a Business Combination that would not cause a Change in Control under subsections (b) and (c)
above; or

 

(e)     The acquisition by any Person,
directly or indirectly, of the power to direct or cause the direction of the management and policies of the Company (i) through
the ownership of securities which provide the holder with such power, excluding voting rights attendant with such securities, or
(ii) by contract; provided that a Change in Control will not be deemed to have occurred if such power was acquired (x) directly
from the Company in a transaction approved by the Incumbent Board, (y) by an employee benefit plan (or related trust) sponsored
or maintained by the Company or any Affiliate or (z) by any person pursuant to a Business Combination that would not cause a Change
in Control under subsections (b), (c) or (d) above; or

 

(f)     During any period of two consecutive
years, the Incumbent Board ceases to constitute a majority of the Board.

 

Notwithstanding
the foregoing, a Change in Control shall only be deemed to have occurred with respect to a Participant in connection with the time
or form of payment of the Participant’s 409A Award (or as otherwise required for the 409A Award to be in compliance with
Code Section 409A) if the Change in Control otherwise constitutes a change in the ownership or effective control of the Company,
or in the ownership of a substantial portion of the assets of the Company, within the meaning of Code Section 409A (otherwise,
with respect to vesting of the 409A Award and any other terms of the 409A Award that do not require a Change in Control to comply
with its meaning under Code Section 409A for the 409A Award to be in compliance with Code Section 409A, Change in Control shall
have the same meaning as described above).

 

1.09       Code

 

“Code” means
the Internal Revenue Code of 1986 and any amendments thereto.

 

1.10       Committee

 

“Committee” means
the Compensation Committee of the Board or such other Committee as the Board may appoint from time to time to administer the Plan,
or the Board itself if no Compensation Committee or other appointed Committee exists. If such Compensation Committee or other Committee
exists, if and to the extent deemed necessary by the Board, such Committee shall consist of two or more directors, all of whom
are (i) “non-employee directors” within the meaning of Rule 16b-3 under the Exchange Act, (ii) “outside directors”
within the meaning of Code Section 162(m) and (iii) independent directors under the rules of the principal stock exchange on which
the Company’s securities are then traded.

 

    	 	-3-	 

     

    

 

1.11       Common
Stock

 

“Common Stock”
means the common stock of the Company, no par value per share, or such other class or kind of shares or other securities resulting
from the application of Article XVI, as applicable.

 

1.12       Company

 

“Company” means
Polar Power, Inc., a California corporation, and any successor thereto.

 

1.13       Control
Change Date

 

“Control Change Date”
means the date on which a Change in Control occurs. If a Change in Control occurs on account of a series of transactions, the “Control
Change Date” is the date of the last of such transactions.

 

1.14       Corresponding
SAR

 

“Corresponding SAR”
means a SAR that is granted in relation to a particular Option and that can be exercised only upon the surrender to the Company,
unexercised, of that portion of the Option to which the SAR relates.

 

1.15       Disability

 

“Disability”
means, for purposes of an incentive stock option, a physical, mental or other impairment within the meaning of Code Section 22(e)(3)
and, for all other purposes, any physical or mental condition that would qualify the Participant for a disability under any long-term
disability plan maintained by the Company or any Affiliate that is applicable to such Participant, except as otherwise determined
by the Committee and set forth in the applicable Agreement. Notwithstanding the foregoing, however, to the extent necessary for
any 409A Award to be in compliance with Code Section 409A, Disability, with respect to the time or form of payment of a Participant’s
409A Award (or as otherwise required for the 409A Award to be in compliance with Code Section 409A), means the Participant is Disabled
within the meaning of Code Section 409A.

 

1.16       Dividend
Equivalent

 

“Dividend Equivalent”
means the right, granted under the Plan, to receive cash, shares of Common Stock, other Awards or other property equal in value
to all or a specified portion of dividends paid with respect to a specified number of shares of Common Stock.

 

    	 	-4-	 

     

    

 

1.17       Exchange
Act

 

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

 

1.18       Fair
Market Value

 

“Fair Market Value”
of a share of Common Stock means, on any given date, the fair market value of a share of Common Stock as the Committee, in its
discretion, shall determine; provided, however, that the Committee shall determine Fair Market Value without regard to any restriction
other than a restriction which, by its terms, will never lapse and, if the shares of Common Stock are traded on any national stock
exchange or quotation system, the Fair Market Value of a share of Common Stock shall be the closing price of a share of Common
Stock as reported on such stock exchange or quotation system on such date, or if the shares of Common Stock are not traded on such
stock exchange or quotation system on such date, then on the next preceding day that the shares of Common Stock were traded on
such stock exchange or quotation system, all as reported by such source as the Committee shall select. The Fair Market Value that
the Committee determines shall be final, binding and conclusive on the Company, any Affiliate and each Participant. Fair Market
Value relating to the exercise price, Initial Value, or purchase price of any Non-409A Award that is an Option, SAR or Other Stock-Based
Award in the nature of purchase rights shall conform to the requirements for exempt stock rights under Code Section 409A.

 

1.19       Full
Value Award

 

“Full Value Award”
means an Award other than an Option, SAR or Other Stock-Based Award in the nature of purchase rights.

 

1.20       Incentive
Award

 

“Incentive Award”
means an Award stated with reference to a specified dollar amount or number of shares of Common Stock which, subject to such terms
and conditions as may be prescribed by the Committee, entitles the Participant to receive shares of Common Stock, cash or a combination
thereof from the Company or an Affiliate.

 

1.21       Incumbent
Board

 

“Incumbent Board”
means a Board of Directors at least a majority of whom consist of individuals who either are (a) members of the Company's Board
at the beginning of any period of two consecutive years or (b) members who become members of the Company's Board subsequent to
such time whose election, or nomination for election by the Company's shareholders, was approved by a vote of at least two-thirds
(2/3) of the directors then comprising the Incumbent Board (either by a specific vote or by approval of the proxy statement of
the Company in which that person is named as a nominee for director, without objection to that nomination), but excluding, for
that purpose, any individual whose initial assumption of office occurs as a result of an actual or threatened election contest
(within the meaning of Rule 14a-11 of the Exchange Act) with respect to the election or removal of directors or other actual or
threatened solicitation of proxies or consents by or on behalf of a Person other than the Board of Directors.

 

    	 	-5-	 

     

    

 

1.22       Initial
Value

 

“Initial Value”
means, with respect to a Corresponding SAR, the Option price per share of the related Option and, with respect to a SAR granted
independently of an Option, the amount determined by the Committee on the date of grant which shall not be less than the Fair Market
Value of one share of Common Stock on the date of grant, subject to Sections 14.06 and 16.03 with respect to substitute Awards

 

1.23       Named
Executive Officer

 

“Named Executive Officer”
means a Participant who, as of the last day of a taxable year, is the Chief Executive Officer of the Company (or is acting in such
capacity) or one of the three highest compensated officers of the Company (other than the Chief Executive Officer or the Chief
Financial Officer) or is otherwise one of the group of “covered employees,” as defined in the regulations promulgated
under Code Section 162(m).

 

1.24       Non-409A
Award

 

“Non-409A Award”
means an Award that is not intended to be subject to Code Section 409A.

 

1.25       Option

 

“Option” means
a stock option that entitles the holder to purchase from the Company a stated number of shares of Common Stock at the price set
forth in an Agreement.

 

1.26       Other
Stock-Based Award

 

“Other Stock-Based
Award” means an Award granted to the Participant under Article XII of the Plan.

 

1.27       Participant

 

“Participant”
means an employee of the Company or an Affiliate, a member of the Board or Board of Directors of an Affiliate (whether or not an
employee), a Person who provides services to the Company or an Affiliate and any entity which is a wholly-owned alter ego of such
employee, member of the Board or Board of Directors of an Affiliate or Person who provides services and who satisfies the requirements
of Article V and is selected by the Committee to receive an Award.

 

1.28       Plan

 

“Plan” means
this Polar Power, Inc. 2016 Omnibus Incentive Plan, in its current form and as hereafter amended.

 

    	 	-6-	 

     

    

 

1.29       Person

 

“Person” means
any individual, corporation, partnership, limited liability company, joint venture, incorporated or unincorporated association,
joint-stock company, trust, unincorporated organization or government or other agency or political subdivision thereof or any other
entity of any kind.

 

1.30       Restricted
Stock Award

 

“Restricted Stock Award”
means shares of Common Stock granted to a Participant under Article IX.

 

1.31       Restricted
Stock Unit

 

“Restricted Stock Unit”
means an Award, stated with respect to a specified number of shares of Common Stock, that entitles the Participant to receive one
share of Common Stock (or, as otherwise determined by the Committee and set forth in the applicable Agreement, the equivalent Fair
Market Value of one share of Common Stock in cash) with respect to each Restricted Stock Unit that becomes payable under the terms
and conditions of the Plan and the applicable Agreement.

 

1.32       Retirement

 

“Retirement”
means the termination of Participant’s employment or service with the Company and its Affiliates on or after (i) attaining
age sixty-five (65) or (ii) attaining age fifty-five (55) and accumulating ten (10) years of service, except as otherwise determined
by the Committee and set forth in the applicable Agreement. For this purpose, years of service shall be determined in accordance
with the Company’s written policies as determined by the Committee.

 

1.33       SAR

 

“SAR” means a
stock appreciation right that in accordance with the terms of an Agreement entitles the holder to receive cash or a number of shares
of Common Stock, as determined by the Committee and set forth in the applicable Agreement, based on the increase in the Fair Market
Value of the shares underlying the stock appreciation right during a stated period specified by the Committee over the Initial
Value. References to “SARs” include both Corresponding SARs and SARs granted independently of Options, unless the context
requires otherwise.

 

1.34       Ten
Percent Shareholder

 

“Ten Percent Shareholder”
means any individual who (considering the stock attribution rules described in Code Section 424(d)) owns stock possessing more
than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Affiliate.

 

    	 	-7-	 

     

    

 

1.35       Termination
Date

 

“Termination Date”
means the day on which a Participant’s employment or service with the Company and its Affiliates terminates or is terminated.

 

ARTICLE II

PURPOSES

 

The Plan is intended to
assist the Company and its Affiliates in recruiting and retaining individuals with ability and initiative by enabling such Persons
to participate in the future success of the Company and its Affiliates by aligning their interests with those of the Company and
its stockholders.

 

ARTICLE III

TYPES OF AWARDS

 

The Plan is intended to
permit the grant of Options qualifying under Code Section 422 (“incentive stock options”) and Options not so
qualifying, SARs, Restricted Stock Awards, Restricted Stock Units, Incentive Awards, Other Stock-Based Awards, Dividend Equivalents
and Cash Awards in accordance with the Plan and procedures that may be established by the Committee. No Option that is intended
to be an incentive stock option shall be invalid for failure to qualify as an incentive stock option. The proceeds received by
the Company from the sale of shares of Common Stock pursuant to this Plan may be used for general corporate purposes.

 

ARTICLE IV

ADMINISTRATION

 

4.01       General
Administration

 

The Plan shall be administered
by the Committee. The Committee shall have authority to grant Awards upon such terms (not inconsistent with the provisions of this
Plan) as the Committee may consider appropriate. Such terms may include conditions (in addition to those contained in this Plan)
on the grant, exercisability, transferability, settlement and forfeitability of all or any part of an Award, among other terms.
Notwithstanding any such conditions, the Committee may, in its discretion, accelerate the time at which any Award may be exercised,
become transferable or nonforfeitable or be earned and settled including, without limitation, (i) in the event of the Participant’s
death, Disability, Retirement or involuntary termination of employment or service (including a voluntary termination of employment
or service for good reason) or (ii) in connection with a Change in Control. In addition, the Committee shall have complete authority
to interpret all provisions of this Plan including, without limitation, the discretion to interpret any terms used in the Plan
that are not defined herein; to prescribe the form of Agreements; to adopt, amend and rescind rules and regulations pertaining
to the administration of the Plan; and to make all other determinations necessary or advisable for the administration of this Plan.
The express grant in the Plan of any specific power to the Committee shall not be construed as limiting any power or authority
of the Committee. Any decision made, or action taken, by the Committee in connection with the administration of this Plan shall
be final and conclusive. The members of the Committee shall not be liable for any act done in good faith with respect to this Plan
or any Agreement or Award. Unless otherwise provided by the Bylaws of the Company, by resolution of the Board or applicable law,
a majority of the members of the Committee shall constitute a quorum, and acts of the majority of the members present at any meeting
at which a quorum is present, and any acts approved in writing by all members of the Committee without a meeting, shall be the
acts of the Committee.

 

    	 	-8-	 

     

    

 

4.02       Delegation
of Authority

 

The Committee may act through
subcommittees, in which case the subcommittee shall be subject to and have the authority hereunder applicable to the Committee,
and the acts of the subcommittee shall be deemed to be the acts of the Committee hereunder. Additionally, to the extent applicable
law so permits, the Committee, in its discretion, may delegate to one or more officers of the Company all or part of the Committee’s
authority and duties with respect to Awards to be granted to individuals who are not subject to the reporting and other provisions
of Section 16 of the Exchange Act and who are not members of the Board or the Board of Directors of an Affiliate. The Committee
may revoke or amend the terms of any delegation at any time but such action shall not invalidate any prior actions of the Committee’s
delegate or delegates that were consistent with the terms of the Plan and the Committee’s prior delegation. Notwithstanding
the foregoing, however, if and to the extent deemed necessary by the Board, (a) all Awards granted to any individual who is subject
to the reporting and other provisions of Section 16 of the Exchange Act shall be made by a Committee comprised solely of two or
more directors, all of whom are “non-employee directors” within the meaning of Rule 16b-3 under the Exchange Act, to
the extent necessary to exempt the Award from the short-swing profit rules of Section 16(b) of the Exchange Act and (b) all Awards
granted to an individual who is a Named Executive Officer shall be made by a Committee comprised solely of two or more directors,
all of whom are “outside directors” within the meaning of Code Section 162(m), to the extent necessary to preserve
any deduction under Code Section 162(m). However, (a) any Awards granted to any individual who is subject to the reporting and
other provisions of Section 16 of the Exchange Act shall not fail to be valid if made other than by a committee comprised solely
of two or more directors, all of whom are “non-employee directors” within the meaning of Rule 16(b)-3 under the Exchange
Act, and (b) any Awards granted to an individual who is a Named Executive Officer shall not fail to be valid if made other than
by a committee comprised solely of two or more directors, all of whom are “outside directors” within the meaning of
Code Section 162(m). An Award granted to an individual who is a member of the Committee may be approved by the Committee in accordance
with the applicable Committee charters then in effect and other applicable law except that the Committee member must abstain from
any action with respect to the Committee member’s own Awards.

 

    	 	-9-	 

     

    

 

4.03       Indemnification
of Committee

 

The Company shall bear all
expenses of administering this Plan. The Company shall indemnify and hold harmless each Person who is or shall have been a member
of the Committee acting as administrator of the Plan, or any delegate of such, against and from any cost, liability, loss or expense
that may be imposed upon or reasonably incurred by such Person in connection with or resulting from any action, claim, suit or
proceeding to which such Person may be a party or in which such Person may be involved by reason of any action taken or not taken
under the Plan and against and from any and all amounts paid by such Person in settlement thereof, with the Company’s approval,
or paid by such Person in satisfaction of any judgment in any such action, suit or proceeding against such Person, 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. Notwithstanding the foregoing, the Company shall not indemnify and hold harmless
any such Person if applicable law or the Company’s Certificate of Incorporation or Bylaws prohibit such indemnification.
The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such Persons may
be entitled under the Company’s Certificate of Incorporation or Bylaws, as a matter of law or otherwise, or under any other
power that the Company may have to indemnify such Person or hold him or her harmless. The provisions of the foregoing indemnity
shall survive indefinitely the term of this Plan.

 

ARTICLE V

ELIGIBILITY

 

Any employee of the Company
or an Affiliate (including an entity that becomes an Affiliate after the adoption of this Plan), a member of the Board or the Board
of Directors of an Affiliate (including an entity that becomes an Affiliate after the adoption of the Plan) (whether or not such
Board or Board of Directors member is an employee), any Person who provides services to the Company or an Affiliate (including
an entity that becomes an Affiliate after the adoption of the Plan) and any entity which is a wholly-owned alter ego of such employee,
member of the Board or Board of Directors of an Affiliate or other Person who provides services is eligible to participate in this
Plan if the Committee, in its sole discretion, determines that such Person or entity has contributed significantly or can be expected
to contribute significantly to the profits or growth of the Company or any Affiliate or if it is otherwise in the best interest
of the Company or any Affiliate for such Person or entity to participate in this Plan. With respect to any Board member who is
(i) designated or nominated to serve as a Board member by a stockholder of the Company and (ii) an employee of such stockholder
of the Company, then, at the irrevocable election of the employing stockholder, the Person or entity who shall be eligible to participate
in this Plan on behalf of the service of the respective Board member shall be the employing stockholder (or one of its Affiliates).
To the extent such election is made, the respective Board member shall have no rights hereunder as a Participant with respect to
such Board member’s participation in this Plan. An Award may be granted to a Person or entity who has been offered employment
or service by the Company or an Affiliate and who would otherwise qualify as eligible to receive the Award to the extent that Person
or entity commences employment or service with the Company or an Affiliate, provided that such Person or entity may not receive
any payment or exercise any right relating to the Award, and the grant of the Award will be contingent, until such Person or entity
has commenced employment or service with the Company or an Affiliate.

 

    	 	-10-	 

     

    

 

ARTICLE VI

COMMON STOCK SUBJECT
TO PLAN

 

6.01       Common
Stock Issued

 

Upon the issuance of shares
of Common Stock pursuant to an Award, the Company may deliver to the Participant (or the Participant’s broker if the Participant
so directs) shares of Common Stock from its authorized but unissued Common Stock, treasury shares or reacquired shares, whether
reacquired on the open market or otherwise.

 

6.02       Aggregate
Limit

 

The maximum aggregate number
(the “Maximum Aggregate Number”) of shares of Common Stock which may be subject to Awards under this Plan is
5,000,000 shares of Common Stock.

 

The Maximum Aggregate Number
of shares of Common Stock that may be subject to Awards under the Plan may be subject to Options. To the extent shares of Common
Stock not issued under an Option must be counted against this limit as a condition to satisfying the rules applicable to incentive
stock options, such rule shall apply to the limit on Options granted under the Plan.

 

The Maximum Aggregate Number
of shares of Common Stock that may be subject to Awards under the Plan and the maximum number of shares of Common Stock that may
be subject to Options under the Plan shall, in each instance, be subject to adjustment as provided in Article XVI, provided, however,
that (i) substitute Awards granted under Section 16.03 shall not reduce the Maximum Aggregate Number of shares of Common Stock
that may be subject to Awards under the Plan (to the extent permitted by applicable stock exchange rules) and (ii) available shares
of stock under a stockholder-approved plan of an acquired company (as appropriately adjusted to reflect the transaction) also may
be used for Awards under the Plan and shall not reduce the Maximum Aggregate Number of shares of Common Stock that may be subject
to Awards under the Plan (subject to applicable stock exchange requirements).

 

    	 	-11-	 

     

    

 

6.03       Individual
Limit

 

The maximum number of shares
of Common Stock that may be covered by Options, SARs or Other Stock-Based Awards in the nature of purchase rights granted to any
one Participant during any calendar year shall be 500,000 shares of Common Stock; provided, however, that (i) if
the Options, SARs or Other Stock-Based Awards in the nature of purchase rights are denominated in shares of Common Stock but an
equivalent amount of cash is delivered in lieu of delivery of shares of Common Stock, the foregoing limit shall be applied based
on the methodology used by the Committee to convert the number of shares of Common Stock into cash and (ii) any adjustment in the
number of shares of Common Stock or amount of cash delivered to reflect actual or deemed investment experience shall be disregarded.
For purposes of the foregoing limit, an Option and its corresponding SAR shall be treated as a single Award. For Full Value Awards
that are intended to constitute “qualified performance-based compensation” within the meaning of Code Section 162(m),
no more than 500,000 shares of Common Stock may be subject to any such Full Value Awards granted to any one Participant during
any calendar year (regardless of whether settlement of the Award is to occur prior to, at the time of, or after the time of vesting);
provided, however, that (i) if the Full Value Award is denominated in shares of Common Stock but an equivalent amount
of cash is delivered in lieu of delivery of shares of Common Stock, the foregoing limit shall be applied based on the methodology
used by the Committee to convert the number of shares of Common Stock into cash and (ii) any adjustment in the number of shares
of Common Stock or amount of the cash delivered to reflect actual or deemed investment experience shall be disregarded. For any
Awards that are intended to constitute “qualified performance-based compensation” within the meaning of Code Section
162(m) and are stated with reference to a specified dollar limit, the maximum amount that may be earned and become payable to any
one Participant with respect to any twelve (12)-month performance period shall equal $2,000,000 (pro rated up or down for performance
periods that are greater or lesser than twelve (12) months); provided, however, that (i) if the Award is denominated
in cash but an equivalent amount of shares of Common Stock are delivered in lieu of delivery of cash, the foregoing limit shall
be applied to the cash based on the methodology used by the Committee to convert the cash into shares of Common Stock and (ii)
any adjustment in the number of shares of Common Stock or the amount of cash delivered to reflect actual or deemed investment experience
shall be disregarded. For any Cash Awards that are intended to constitute annual incentive awards, the maximum amount that may
be earned and become payable to any one Participant with respect to any twelve (12)-month period shall equal $5,000,000; provided,
however, that (i) if the Cash Award is denominated in cash but an equivalent amount of shares of Common Stock are delivered
in lieu of delivery of cash, the foregoing limit shall be applied to the cash based on the methodology used by the Committee to
convert the cash into shares of Common Stock and (ii) any adjustment in the number of shares of Common Stock or the amount of cash
delivered to reflect actual or deemed investment experience shall be disregarded. If an Award that a Participant holds is cancelled
or subject to a repricing within the meaning of the regulations under Code Section 162(m) (after shareholder approval as required
herein), the cancelled Award shall continue to be counted against the maximum number of shares of Common Stock for which Awards
may be granted to the Participant in any calendar year as required under Code Section 162(m). The maximum number of shares that
may be granted in any consecutive rolling thirty-six (36)-month period to any Participant shall be subject to adjustment as provided
in Article XVI. In addition to the limits set forth herein, (i) the maximum number of shares of Common Stock that may be covered
by Awards stated with reference to a specific number of shares of Common Stock and granted to any one Participant in connection
with the Participant’s service as a member of the Board during any twelve (12)-month period shall be 500,000 shares of Common
Stock and (ii) for Awards stated with reference to a specific dollar amount, the maximum amount that may be earned and become payable
to any one Participant in connection with the Participant's service as a member of the Board for any consecutive twelve (12)-month
period shall equal $2,000,000 (prorated up or down for periods that are greater or lesser than twelve (12) months), in each case
applied as described above for the other individual limitations.

    	 	-12-	 

     

    

 

6.04       Share
Counting

 

Except as set forth below,
a share of Common Stock subject to any Award under this Plan shall reduce the Maximum Aggregate Number of shares of Common Stock
available for Awards under this Plan, and the maximum number of shares of Common Stock available for Options under this Plan, by
one. Except as otherwise provided herein, (i) any shares of Common Stock subject to an Award granted under this Plan which terminates
by expiration, forfeiture, cancellation or otherwise, which is settled in cash in lieu of Common Stock or which is exchanged, with
the Committee’s permission, for Awards granted under this Plan not involving shares of Common Stock, (ii) shares of Common
Stock not issued or delivered as a result of the net exercise or settlement of an outstanding Award granted under this Plan, (iii)
shares of Common Stock tendered to pay the exercise or purchase price or withholding taxes relating to an outstanding Award granted
under this Plan, (iv) shares of Common Stock repurchased on the open market with the proceeds of the exercise or purchase price
of an Award granted under this Plan, and (v) shares of Common Stock under a stock-settled SAR that are not actually issued in connection
with settlement of the stock-settled SAR, shall all again be available for Awards under the Plan.

 

ARTICLE VII

OPTIONS 

 

7.01       Grant

 

Subject to the eligibility
provisions of Article V, the Committee will designate each individual or entity to whom an Option is to be granted and will specify
the number of shares of Common Stock covered by such grant and whether the Option is an incentive stock option or a nonqualified
stock option. Notwithstanding any other provision of the Plan or any Agreement, the Committee may only grant an incentive stock
option to an individual who is an employee of the Company or an Affiliate. An Option may be granted with or without a Corresponding
SAR.

 

7.02       Option
Price

 

The price per share of Common
Stock purchased on the exercise of an Option shall be determined by the Committee on the date of grant, but shall not be less than
the Fair Market Value of a share of Common Stock on the date the Option is granted, subject to Sections 14.06 and 16.03 with respect
to substitute Awards. However, if at the time of grant of an Option that is intended to be an incentive stock option, the Participant
is a Ten Percent Shareholder, the price per share of Common Stock purchased on the exercise of such Option shall not be less than
one hundred ten percent (110%) of the Fair Market Value of a share of Common Stock on the date the Option is granted.

 

7.03       Maximum
Term of Option

 

The maximum time period in
which an Option may be exercised shall be determined by the Committee on the date of grant, except that no Option shall be exercisable
after the expiration of ten (10) years from the date such Option was granted.

 

    	 	-13-	 

     

    

 

7.04       Exercise

 

Subject to the provisions
of this Plan and the applicable Agreement, an Option may be exercised in whole at any time or in part from time to time at such
times and in compliance with such requirements as the Committee shall determine; provided, however, that incentive stock options
(granted under the Plan and all plans of the Company and its Affiliates) may not be first exercisable in a calendar year for shares
of Common Stock having a Fair Market Value (determined as of the date the Option is granted) exceeding the limit set forth under
Code Section 422(d) (currently $100,000). If the limitation is exceeded, the Options that cause the limitation to be exceeded shall
be treated as nonqualified stock options. An Option granted under this Plan may be exercised with respect to any number of whole
shares less than the full number for which the Option could be exercised. A partial exercise of an Option shall not affect the
right to exercise the Option from time to time in accordance with this Plan and the applicable Agreement with respect to the remaining
shares subject to the Option. The exercise of an Option shall result in the termination of the Corresponding SAR to the extent
of the number of shares with respect to which the Option is exercised.

 

7.05       Payment

 

Subject to rules established
by the Committee and unless otherwise provided in an Agreement, payment of all or part of the Option price shall be made in cash
or cash equivalent acceptable to the Committee. If the Agreement so provides, the Committee, in its discretion and provided applicable
law so permits, may allow a Participant to pay all or part of the Option price (a) by surrendering (actually or by attestation)
shares of Common Stock to the Company that the Participant already owns; (b) by a cashless exercise through a broker; (c) by means
of a “net exercise” procedure by the surrender of shares of Common Stock to which the Participant is otherwise entitled
under the Option; (d) by such other medium of payment as the Committee, in its discretion, shall authorize; or (e) by any combination
of the aforementioned methods of payment. If shares of Common Stock are used to pay all or part of the Option price, the sum of
the cash and cash equivalent and the Fair Market Value (determined as of the day preceding the date of exercise) of the shares
surrendered must not be less than the Option price of the shares for which the Option is being exercised.

 

7.06       Stockholder
Rights

 

No Participant shall have
any rights as a stockholder with respect to shares subject to his or her Option until the date of exercise of such Option and the
issuance of the shares of Common Stock.

 

7.07       Disposition
of Shares

 

A Participant shall notify
the Company of any sale or other disposition of shares of Common Stock acquired pursuant to an Option that was designated an incentive
stock option if such sale or disposition occurs (a) within two (2) years of the grant of an Option or (b) within one (1) year of
the issuance of shares of Common Stock to the Participant (subject to any changes in such time periods as set forth in Code Section
422(a)). Such notice shall be in writing and directed to the Secretary of the Company.

 

    	 	-14-	 

     

    

 

7.08       No
Liability of Company

 

The Company shall not be
liable to any Participant or any other Person if the Internal Revenue Service or any court or other authority having jurisdiction
over such matter determines for any reason that an Option intended to be an incentive stock option and granted hereunder does not
qualify as an incentive stock option.

 

ARTICLE VIII

SARS

 

8.01       Grant

 

Subject to the eligibility
provisions of Article V, the Committee will designate each individual or entity to whom SARs are to be granted and will specify
the number of shares of Common Stock covered by such grant. In addition, no Participant may be granted Corresponding SARs (under
this Plan and all other incentive stock option plans of the Company and its Affiliates) that are related to incentive stock options
which are first exercisable in any calendar year for shares of Common Stock having an aggregate Fair Market Value (determined as
of the date the related Option is granted) that exceeds $100,000.

 

8.02       Maximum
Term of SAR

 

The maximum term of a SAR
shall be determined by the Committee on the date of grant, except that no SAR shall have a term of more than ten (10) years from
the date such SAR was granted. No Corresponding SAR shall be exercisable or continue in existence after the expiration of the Option
to which the Corresponding SAR relates.

 

8.03       Exercise

 

Subject to the provisions
of this Plan and the applicable Agreement, a SAR may be exercised in whole at any time or in part from time to time at such times
and in compliance with such requirements as the Committee shall determine; provided, however, that a SAR may be exercised only
when the Fair Market Value of the Common Stock that is subject to the exercise exceeds the Initial Value of the SAR and a Corresponding
SAR may be exercised only to the extent that the related Option is exercisable. A SAR granted under this Plan may be exercised
with respect to any number of whole shares less than the full number for which the SAR could be exercised. A partial exercise of
a SAR shall not affect the right to exercise the SAR from time to time in accordance with this Plan and the applicable Agreement
with respect to the remaining shares subject to the SAR. The exercise of a Corresponding SAR shall result in the termination of
the related Option to the extent of the number of shares with respect to which the SAR is exercised.

 

8.04       Settlement

 

The amount payable to the
Participant by the Company as a result of the exercise of a SAR shall be settled in cash, by the issuance of shares of Common Stock
or by a combination thereof, as the Committee, in its sole discretion, determines and sets forth in the applicable Agreement. No
fractional share will be deliverable upon the exercise of a SAR but a cash payment will be made in lieu thereof.

 

    	 	-15-	 

     

    

 

8.05       Stockholder
Rights

 

No Participant shall, as
a result of receiving a SAR, have any rights as a stockholder of the Company or any Affiliate until the date that the SAR is exercised
and then only to the extent that the SAR is settled by the issuance of Common Stock.

 

ARTICLE IX

RESTRICTED STOCK AWARDS

 

9.01       Award

 

Subject to the eligibility
provisions of Article V, the Committee will designate each individual or entity to whom a Restricted Stock Award is to be granted,
and will specify the number of shares of Common Stock covered by such grant and the price, if any, to be paid for each share of
Common Stock covered by the grant.

 

9.02       Payment

 

Unless the Agreement provides
otherwise, if the Participant must pay for a Restricted Stock Award, payment of the Award shall be made in cash or cash equivalent
acceptable to the Committee. If the Agreement so provides, the Committee, in its discretion and provided applicable law so permits,
may allow a Participant to pay all or part of the purchase price (i) by surrendering (actually or by attestation) shares of Common
Stock to the Company the Participant already owns and, if necessary to avoid adverse accounting consequences, has held for at least
six months, (ii) by means of a “net exercise procedure” by the surrender of shares of Common Stock to which the Participant
is otherwise entitled under the Restricted Stock Award, (iii) by such other medium of payment as the Committee in its discretion
shall authorize or (iv) by any combination of the foregoing methods of payment. If Common Stock is used to pay all or part of the
purchase price, the sum of cash and cash equivalent and other payments and the Fair Market Value (determined as of the day preceding
the date of purchase) of the Common Stock surrendered must not be less than the purchase price of the Restricted Stock Award. A
Participant’s rights in a Restricted Stock Award may be subject to repurchase upon specified events as determined by the
Committee and set forth in the Agreement.

 

9.03       Vesting

 

The Committee, on the date
of grant of the Restricted Stock Award, shall prescribe that the Restricted Stock Award will become nonforfeitable and transferable
subject to such conditions as are set forth in the Agreement. Notwithstanding any provision herein to the contrary, the Committee,
in its sole discretion, may grant Restricted Stock Awards that are nonforfeitable and transferable immediately upon grant, including
without limitation Restricted Stock Awards granted in payment of earned performance awards or other incentive compensation under
the Plan or any other plans or compensatory arrangements of the Company or any Affiliate. A Restricted Stock Award can only become
nonforfeitable and transferable during the Participant’s lifetime in the hands of the Participant.

 

    	 	-16-	 

     

    

 

9.04       Maximum
Restriction Period

 

To the extent the Participant’s
rights in a Restricted Stock Award are forfeitable and nontransferable for a period of time, the Committee on the date of grant
shall determine the maximum period over which the rights may become nonforfeitable and transferable, except that such period shall
not exceed ten (10) years from the date of grant.

 

9.05       Stockholder
Rights

 

Prior to their forfeiture
(in accordance with the applicable Agreement and while the shares of Common Stock granted pursuant to the Restricted Stock Award
may be forfeited and are nontransferable), a Participant will have all rights of a stockholder with respect to a Restricted Stock
Award, including the right to receive dividends and vote the shares; provided, however, that during such period (a) a Participant
may not sell, transfer, pledge, exchange, hypothecate or otherwise dispose of shares granted pursuant to a Restricted Stock Award,
(b) the Company shall retain custody of any certificates evidencing shares granted pursuant to a Restricted Stock Award and (c)
the Participant will deliver to the Company a stock power, endorsed in blank, with respect to each Restricted Stock Award. In lieu
of retaining custody of the certificates evidencing shares granted pursuant to a Restricted Stock Award, the shares of Common Stock
granted pursuant to the Restricted Stock Award may, in the Committee’s discretion, be held in escrow by the Company or recorded
as outstanding by notation on the stock records of the Company until the Participant’s interest in such shares of Common
Stock vest. Notwithstanding the preceding sentences, but subject to Section 14.07 below, if and to the extent deemed necessary
by the Committee, dividends payable with respect to Restricted Stock Awards may accumulate (without interest) and become payable
in cash or in shares of Common Stock to the Participant at the time, and only to the extent that, the portion of the Restricted
Stock Award to which the dividends relate has become transferable and nonforfeitable. The limitations set forth in the preceding
sentences shall not apply after the shares granted under the Restricted Stock Award are transferable and are no longer forfeitable.

 

ARTICLE X

RESTRICTED STOCK UNITS

 

10.01     Grant

 

Subject to the eligibility
provisions of Article V, the Committee will designate each individual or entity to whom a grant of Restricted Stock Units is to
be made and will specify the number of shares covered by such grant.

 

    	 	-17-	 

     

    

 

10.02     Earning
the Award

 

The Committee, on the date
of grant of the Restricted Stock Units, shall prescribe that the Restricted Stock Units will be earned and become payable subject
to such conditions as are set forth in the Agreement. Notwithstanding any provision herein to the contrary, the Committee, in its
sole discretion, may grant Restricted Stock Units in payment of earned performance awards or other incentive Compensation under
the Plan or any other plans or Compensatory arrangements of the Company or any Affiliate. If and to the extent deemed necessary
by the Committee, Restricted Stock Units granted to Named Executive Officers shall become payable upon the satisfaction of objectively
determinable performance conditions based on the criteria described in Article XV and shall be subject to the other requirements
set forth in Article XV so as to enable such Restricted Stock Units to qualify as “qualified performance-based compensation”
under the regulations promulgated under Code Section 162(m). Notwithstanding any provision herein to the contrary, the Committee,
in its sole discretion, may grant Restricted Stock Units that are earned and payable immediately upon grant.

 

10.03     Maximum
Restricted Stock Unit Award Period

 

The Committee, on the
date of grant, shall determine the maximum period over which Restricted Stock Units may be earned, except that such period shall
not exceed ten (10) years from the date of grant.

 

10.04     Payment

 

The amount payable to the
Participant by the Company when an Award of Restricted Stock Units is earned shall be settled by the issuance of one share of Common
Stock (or, as otherwise determined by the Committee and set forth in the applicable Agreement, the equivalent Fair Market Value
of one share of Common Stock in cash) for each Restricted Stock Unit that is earned. A fractional share of Common Stock shall not
be deliverable when an Award of Restricted Stock Units is earned, but a cash payment will be made in lieu thereof.

 

10.05     Stockholder
Rights

 

No Participant shall, as
a result of receiving a grant of Restricted Stock Units, have any rights as a stockholder until and then only to the extent that
the Restricted Stock Units are earned and settled in shares of Common Stock, nor shall any participant receive Dividend Equivalents
solely as a result of receiving a grant of Restricted Stock Units. However, notwithstanding the foregoing, the Committee, in its
sole discretion, may grant Dividend Equivalents in the Agreement in connection with a grant of Restricted Stock Units. By way of
example and not limitation, such Dividend Equivalents may provide that, for so long as the Participant holds any Restricted Stock
Units, if the Company pays any cash dividends on its Common Stock, then (a) the Company may pay the Participant in cash for each
outstanding Restricted Stock Unit covered by the Agreement as of the record date of such dividend, less any required withholdings,
the per share amount of such dividend or (b) the number of outstanding Restricted Stock Units covered by the Agreement may be increased
by the number of Restricted Stock Units, rounded down to the nearest whole number, equal to (i) the product of the number of the
Participant’s outstanding Restricted Stock Units as of the record date for such dividend multiplied by the per share amount
of the dividend divided by (ii) the Fair Market Value of a share of Common Stock on the payment date of such dividend. In the event
additional Restricted Stock Units are awarded, such Restricted Stock Units shall be subject to the same terms and conditions set
forth in the Plan and the Agreement as the outstanding Restricted Stock Units with respect to which they were granted. Notwithstanding
the preceding sentences, but subject to Section 14.07 below, if and to the extent deemed necessary to the Committee, Dividend Equivalents
payable with respect to Restricted Stock Units may accumulate (without interest) and become payable to the Participant at the time,
and only to the extent that, the portion of the Restricted Stock Units to which the Dividend Equivalents relate has become earned
and payable. The limitations set forth in the preceding sentences shall not apply after the Restricted Stock Units become earned
and payable and shares are issued thereunder.

 

    	 	-18-	 

     

    

 

ARTICLE XI

INCENTIVE AWARDS 

 

11.01     Grant

 

Subject to the eligibility
provisions of Article V, the Committee will designate each individual or entity to whom Incentive Awards are to be granted. All
Incentive Awards shall be determined exclusively by the Committee under the procedures established by the Committee.

 

11.02     Earning
the Award

 

Subject to the Plan, the
Committee, on the date of grant of an Incentive Award, shall specify in the applicable Agreement the terms and conditions which
govern the grant, including, without limitation, whether the Participant to be entitled to payment must be employed or providing
services to the Company or an Affiliate at the time the Incentive Award is to be paid. If and to the extent deemed necessary by
the Committee, Incentive Awards granted to Named Executive Officers shall be earned and become payable upon the satisfaction of
objectively determinable performance conditions based on the criteria described in Article XV and shall be subject to the other
requirements set forth in Article XV so as to enable the Incentive Awards to qualify as “qualified performance-based compensation”
under the regulations promulgated under Code Section 162(m).

 

11.03     Maximum
Incentive Award Period

 

The Committee, at the time
an Incentive Award is made, shall determine the maximum period over which the Incentive Award may be earned, except that such period
shall not exceed ten (10) years from the date of grant.

 

11.04     Payment

 

The amount payable to the
Participant by the Company when an Incentive Award is earned may be settled in cash, by the issuance of shares of Common Stock
or by a combination thereof, as the Committee, in its sole discretion, determines and sets forth in the applicable Agreement. A
fractional share of Common Stock shall not be deliverable when an Incentive Award is earned, but a cash payment will be made in
lieu thereof.

 

    	 	-19-	 

     

    

 

11.05     Stockholder
Rights

 

No Participant shall, as
a result of receiving an Incentive Award, have any rights as a stockholder of the Company or any Affiliate on account of such Incentive
Award, unless and then only to the extent that the Incentive Award is earned and settled in shares of Common Stock.

 

ARTICLE XII

OTHER STOCK-BASED
AWARDS

 

12.01     Other
Stock-Based Awards

 

The Committee is authorized,
subject to limitations under applicable law, to grant to a Participant such other Awards that may be denominated or payable in,
valued in whole or in part by reference to or otherwise based on shares of Common Stock, including, without limitation, convertible
or exchangeable securities, and other rights convertible or exchangeable into shares of Common Stock or the cash value of shares
of Common Stock. The Committee shall determine the terms and conditions of any such Other Stock-Based Awards. Unless the Committee
or the Agreement provides otherwise, Other Stock-Based Awards shall be vested, exercisable or earned and payable upon the date
of grant. Common Stock delivered pursuant to an Other Stock-Based Award in the nature of purchase rights (“Purchase Right
Award”) shall be purchased for such consideration not less than the Fair Market Value of the shares of Common Stock as
of the date the Other Stock-Based Award is granted (subject to Sections 14.06 and 16.03 with respect to substitute Awards), and
may be paid for at such times, by such methods, and in such forms, including, without limitation, cash, shares of Common Stock,
other Awards, notes or other property, as the Committee shall determine. The maximum time period in which an Other Stock-Based
Award in the nature of purchase rights may be exercised shall be determined by the Committee on the date of grant, except that
no Other Stock-Based Award in the nature of purchase rights shall be exercisable after the expiration of ten (10) years from the
date such Other Stock-Based Award was granted.

 

12.02     Bonus
Stock and Awards in Lieu of Other Obligations

 

The Committee also is authorized
(i) to grant to a Participant shares of Common Stock as a bonus, (ii) to grant shares of Common Stock or other Awards in lieu of
other obligations of the Company or any Affiliate to pay cash or to deliver other property under this Plan or under any other plans
or compensatory arrangements of the Company or any Affiliate, (iii) to use available shares of Common Stock as the form of payment
for compensation, grants or rights earned or due under any other compensation plans or arrangements of the Company or an Affiliate,
and (iv) subject to Section 19.13 below, to grant as alternatives to or replacements of Awards granted or outstanding under the
Plan or any other plan or arrangement of the Company or any Affiliate, subject to such terms as shall be determined by the Committee
and the overall limitation on the number of shares of Common Stock that may be issued under the Plan. Notwithstanding any other
provision hereof, shares of Common Stock or other securities delivered to a Participant pursuant to a purchase right granted under
this Plan shall be purchased for consideration, the Fair Market Value of which shall not be less than the Fair Market Value of
such shares of Common Stock or other securities as of the date such purchase right is granted.

 

    	 	-20-	 

     

    

 

ARTICLE XIII

DIVIDEND EQUIVALENTS
AND CASH AWARDS

 

13.01     Dividend
Equivalents

 

The Committee is authorized
to grant Dividend Equivalents to a Participant which may be awarded on a free-standing basis or in connection with another Award.
Subject to Section 14.07 below, the Committee may provide that Dividend Equivalents shall be paid or distributed when accrued or
shall be deemed to have been reinvested in additional shares of Common Stock, other Awards or other investment vehicles, subject
to restrictions on transferability, risk of forfeiture and such other terms as the Committee may specify and set forth in the applicable
Agreement. Notwithstanding the foregoing, no Dividend Equivalents may be awarded in connection with an Option, SAR or Other Stock-Based
Award in the nature of purchase rights.

 

13.02     Cash
Awards

 

The Committee is authorized
to grant to a Participant Cash Awards. The Committee shall determine the terms and conditions of any such Cash Awards. Cash Awards
may be granted as an element of or a supplement to any other Award under the Plan or as a stand-alone Cash Award. The Committee,
on the date of grant of Cash Awards, may prescribe that the Cash Awards will be earned and become payable subject to such conditions
as are set forth in the Agreement. By way of example and not of limitation, the Committee may prescribe that Cash Awards will be
earned and become payable upon (a) the satisfaction of objectively determinable performance conditions based on the criteria described
in Article XV, (b) the Participant’s completion of a specified period of employment or service with the Company or an Affiliate,
(c) the Participant’s death, Disability or Retirement or (d) satisfaction of a combination of any of the foregoing factors.
If and to the extent deemed necessary by the Committee, Cash Awards granted to Named Executive Officers shall become payable upon
the satisfaction of objectively determinable performance conditions based on the criteria described in Article XV and shall be
subject to the other requirements set forth in Article XV so as to enable such Cash Awards to qualify as “qualified performance-based
compensation” under the regulations promulgated under Code Section 162(m). Notwithstanding any provision herein to the contrary,
the Committee, in its sole discretion, may grant Cash Awards in payment of earned performance awards and other incentive compensation
payable under the Plan or any other plans or compensatory arrangements of the Company or any Affiliate. Unless the Committee or
the Agreement provides otherwise, Cash Awards shall be vested and payable upon the date of grant.

 

    	 	-21-	 

     

    

 

ARTICLE XIV

TERMS APPLICABLE TO
ALL AWARDS

 

14.01     Written
Agreement

 

Each Award shall be evidenced
by a written or electronic Agreement (including any amendment or supplement thereto) between the Company and the Participant specifying
the terms and conditions of the Award granted to such Participant. Each Agreement should specify whether the Award is intended
to be a Non-409A Award or a 409A Award.

 

14.02     Nontransferability

 

Except as provided in Section
14.03 below, each Award granted under this Plan shall be nontransferable except by will or by the laws of descent and distribution
or pursuant to the terms of a valid qualified domestic relations order. In the event of any transfer of an Option or Corresponding
SAR (by the Participant or his transferee), the Option and Corresponding SAR that relates to such Option must be transferred to
the same Person or Persons or entity or entities. Except as provided in Section 14.03 below, during the lifetime of the Participant
to whom the Option or SAR is granted, the Option or SAR may be exercised only by the Participant. No right or interest of a Participant
in any Award shall be liable for, or subject to, any lien, obligation, or liability of such Participant or his transferee.

 

14.03     Transferable
Awards

 

Section 14.02 to the contrary
notwithstanding, if the Agreement so provides, an Award that is not an incentive stock option or a Corresponding SAR that relates
to an incentive stock option may be transferred by a Participant to immediate family members or trusts or other entities on behalf
of the Participant and/or immediate family members or for charitable donations. Any such transfer will be permitted only if (a)
the Participant does not receive any consideration for the transfer and (b) the Committee expressly approves the transfer. The
holder of the Award transferred pursuant to this Section shall be bound by the same terms and conditions that governed the Award
during the period that it was held by the Participant; provided, however, that such transferee may not transfer the Award except
by will or the laws of descent and distribution. Unless transferred as provided in Section 9.05, a Restricted Stock Award may not
be transferred prior to becoming non-forfeitable and transferable.

 

    	 	-22-	 

     

    

 

14.04     Participant
Status

 

If the terms of any Award
provide that it may be exercised or paid only during employment or continued service or within a specified period of time after
termination of employment or continued service, the Committee may decide to what extent leaves of absence for governmental or military
service, illness, temporary disability or other reasons shall not be deemed interruptions of continuous employment or service.
For purposes of the Plan, employment and continued service shall be deemed to exist between the Participant and the Company and/or
an Affiliate if, at the time of the determination, the Participant is a director, officer, employee, consultant or advisor of the
Company or an Affiliate. A Participant on military leave, sick leave or other bona fide leave of absence shall continue to be considered
an employee for purposes of the Plan during such leave if the period of leave does not exceed three (3) months, or, if longer,
so long as the individual’s right to re-employment with the Company or any of its Affiliates is guaranteed either by statute
or by contract. If the period of leave exceeds three (3) months, and the individual’s right to re-employment is not guaranteed
by statute or by contract, the employment shall be deemed to be terminated on the first day after the end of such three (3) month
period. Except as may otherwise be expressly provided in an Agreement, Awards granted to a director, officer, employee, consultant
or advisor shall not be affected by any change in the status of the Participant so long as the Participant continues to be a director,
officer, employee, consultant or advisor to the Company or any of its Affiliates (regardless of having changed from one to the
other or having been transferred from one entity to another). The Participant’s employment or continued service shall not
be considered interrupted in the event the Committee, in its discretion, and as specified at or prior to such occurrence, determines
there is no interruption in the case of a spin-off, sale or disposition of the Participant’s employer from the Company or
an Affiliate, except that if the Committee does not otherwise specify such at or such prior to such occurrence, the Participant
will be deemed to have a termination of employment or continuous service to the extent the Affiliate that employs the Participant
is no longer the Company or an entity that qualifies as an Affiliate. The foregoing provisions apply to a 409A Award only to the
extent Code Section 409A does not otherwise treat the Participant as continuing in service or employment or as having a separation
from service at an earlier time.

 

    	 	-23-	 

     

    

 

14.05     Change
in Control

 

Notwithstanding any provision
of any Agreement, in the event of a Change in Control, the Committee in its discretion may (i) declare that some or all outstanding
Options, SARs and Other Stock-Based Awards in the nature of purchase rights previously granted under the Plan, whether or not then
exercisable, shall terminate on the Control Change Date without any payment to the holder of the Options, SARs and Other Stock-Based
Awards in the nature of purchase rights, provided the Committee gives prior written notice to the holders of such termination and
gives such holders the right to exercise their outstanding Options, SARs and Other Stock-Based Awards in the nature of purchase
rights for at least seven (7) days before such date to the extent then exercisable (or to the extent such Options, SARs
or Other Stock-Based Awards in the nature of purchase rights would have become exercisable as of the Control Change Date), (ii)
terminate on the Control Change Date outstanding Restricted Stock Awards, Restricted Stock Units, Incentive Awards, Other Stock-Based
Awards not in the nature of purchase rights and Dividend Equivalents previously granted under the Plan that are not then nonforfeitable
and transferable or earned and payable (and that will not become nonforfeitable and transferable or earned and payable as of the
Control Change Date) without any payment to the holder of the Restricted Stock Award, Restricted Stock Units, Incentive Awards,
Other Stock-Based Awards not in the nature of purchase rights and Dividend Equivalents, other than the return, if any, of the purchase
price of any such Awards, (iii) terminate on the Control Change Date some or all outstanding Options, SARs and Other Stock-Based
Awards in the nature of purchase rights previously granted under the Plan, whether or not then exercisable, in consideration of
payment to the holder of the Options, SARs and Other Stock-Based Awards in the nature of purchase rights, with respect to each
share of Common Stock for which the Options, SARs and Other Stock-Based Awards in the nature of purchase rights are then exercisable
(or that will become exercisable as of the Control Change Date), of the excess, if any, of the Fair Market Value on such date of
the Common Stock subject to such portion of the Options, SARs and Other Stock-Based Awards in the nature of purchase rights over
the purchase price or Initial Value, as applicable (provided that any portion of such Options, SARs and Other Stock-Based Awards
in the nature of purchase rights that are not then exercisable and will not become exercisable on the Control Change Date, and
Options, SARs and Other Stock-Based Awards in the nature of purchase rights with respect to which the Fair Market Value of the
Common Stock subject to the Options, SARs and Other Stock-Based Awards in the nature of purchase rights does not exceed the purchase
price or Initial Value, as applicable, shall be cancelled without any payment therefor), (iv) terminate on the Control Change Date
outstanding Restricted Stock Awards, Restricted Stock Units, Incentive Awards, Other Stock-Based Awards not in the nature of purchase
rights and Divided Equivalents previously granted under the Plan that will become nonforfeitable and transferable or earned and
payable as of the Control Change Date (or that previously became nonforfeitable and transferable or earned and payable but have
not yet been settled as of the Control Change Date) in exchange for a payment equal to the excess of the Fair Market Value of the
shares of Common Stock subject to such Awards, or the amount of cash payable under the Awards, over any unpaid purchase price,
if any, for such Awards (provided that any portion of such Awards that are not then nonforfeitable and transferable or earned and
payable as of the Control Change Date (and that will not become nonforfeitable and transferable or earned and payable as of the
Control Change Date) shall be cancelled without any payment therefor), or (v) take such other actions as the Committee determines
to be reasonable under the circumstances to permit the Participant to realize the value of the outstanding Awards (which Fair Market
Value for purposes of Awards that are not then exercisable, nonforfeitable and transferable or earned and payable as of the Control
Change Date (and that will not become exercisable, nonforfeitable and transferable or earned and payable as of the Control Change
Date) or with respect to which the Fair Market Value of the Common Stock subject to the Awards does not exceed the purchase price
or Initial Value, as applicable, shall be deemed to be zero). The payments described above may be made in any manner the Committee
determines, including in cash, stock or other property. The Committee may take the actions described above with respect to Awards
that are not then exercisable, nonforfeitable and transferable or earned and payable or with respect to which the Fair Market Value
of the Common Stock subject to the Awards does not exceed the purchase price or Initial Value, as applicable, whether or not the
Participant will receive any payments therefor. The Committee in its discretion may take any of the actions described in this Section
14.05 contingent on consummation of the Change in Control and with respect to some or all outstanding Awards, whether or not then
exercisable, nonforfeitable and transferable or earned and payable or on an Award-by-Award basis, which actions need not be uniform
with respect to all outstanding Awards or Participants. However, outstanding Awards shall not be terminated to the extent that
written provision is made for their continuance, assumption or substitution by the Company or a successor employer or its parent
or subsidiary in connection with the Change in Control except as otherwise provided in the applicable Agreement.

 

    	 	-24-	 

     

    

 

14.06     Stand-Alone,
Additional, Tandem and Substitute Awards

 

Subject to Section 19.13
below, Awards granted under the Plan may, in the discretion of the Committee, be granted either alone or in addition to, in tandem
with or in substitution or exchange for, any other Award or any Award granted under another plan of the Company or any Affiliate
or any entity acquired by the Company or any Affiliate or any other right of a Participant to receive payment from the Company
or any Affiliate; provided, however, that a 409A Award may not be granted in tandem with a Non-409A Award. Awards granted in addition
to or in tandem with another Award or Awards may be granted either at the same time as or at a different time from the grant of
such other Award or Awards. Subject to applicable law and the restrictions on 409A Awards and repricings in Section 19.13 below,
the Committee may determine that, in granting a new Award, the in-the-money value or Fair Market Value of any surrendered Award
or Awards or the value of any other right to payment surrendered by the Participant may be applied, or otherwise taken into account
with respect, to any other new Award or Awards.

 

14.07     Form
and Timing of Payment; Deferrals

 

Subject to the terms of the
Plan and any applicable Agreement, payments to be made by the Company or an Affiliate upon the exercise of an Option, SAR or Other
Stock-Based Award in the nature of purchase rights or settlement of any other Award may be made in such form as the Committee may
determine and set forth in the applicable Agreement, including, without limitation, cash, shares of Common Stock, other Awards
or other property and may be made in a single payment or transfer, in installments or on a deferred basis. The settlement of an
Award may be accelerated, and cash paid in lieu of shares of Common Stock in connection with such settlement, in the discretion
of the Committee or upon the occurrence of one or more specified events set forth in the applicable Agreement (and to the extent
permitted by the Plan and Code Section 409A). Subject to the Plan, installment or deferred payments may be required by the Committee
or permitted at the election of the Participant on the terms and conditions established by the Committee. Payments may include,
without limitation, provisions for the payment or crediting of reasonable interest on installments or deferred payments or the
grant or crediting of Dividend Equivalents or other amounts in respect of installment or deferred payments denominated in shares
of Common Stock. In the case of any 409A Award that is vested and no longer subject to a substantial risk of forfeiture (within
the meaning of Code Section 83 and Code Section 409A), such Award may be distributed to the Participant, upon application of the
Participant to the Committee, if the Participant has an unforeseeable emergency within the meaning of Code Section 409A, if determined
by the Committee and set forth in the applicable Agreement. Notwithstanding any other provision of the Plan, however, no dividends
payable with respect to an Award or Dividend Equivalents may be paid in connection with any Awards or Dividend Equivalents that
are to become nonforfeitable and transferable or earned and payable based upon performance conditions unless and until the performance
conditions are satisfied, and, if determined by the Committee and set forth in the applicable Agreement, any such dividends and
Dividend Equivalents will accumulate (without interest) and become payable to the Participant at the time, and only to the extent
that, the applicable Awards or Dividend Equivalents have become non-forfeitable and transferable or earned and payable upon satisfaction
of the relevant performance conditions.

 

    	 	-25-	 

     

    

 

14.08     Time
and Method of Exercise

 

The Committee shall determine
and set forth in the Agreement the time or times at which Awards granted under the Plan may be exercised or settled in whole or
in part and shall set forth in the Agreement the rules regarding the exercise, settlement and/or termination of Awards upon the
Participant’s death, Disability, termination of employment or ceasing to be a director. Unless the Agreement provides otherwise,
an Award may be exercised by delivering notice to the Company’s principal office, to the attention of its Secretary (or the
Secretary’s designee) no less than one (1) business day in advance of the effective date of the proposed exercise. Such notice
shall be accompanied by the applicable Agreement, shall specify the number of shares of Common Stock with respect to which the
Award is being exercised and the effective date of the proposed exercise and shall be signed by the Participant or other person
then having the right to exercise the Award. Such notice may be withdrawn at any time prior to the close of business on the business
day immediately preceding the effective date of the proposed exercise. Unless the Committee otherwise permits through the applicable
Agreement or otherwise, no partial exercise of an Award shall be for an aggregate exercise or purchase price or a base value of
less than One Thousand Dollars ($1,000). Notwithstanding any other provision of the Plan, however, if an Award is to become exercisable,
nonforfeitable and transferable or earned and payable on the completion of a specified period of employment or service with the
Company or any Affiliate, without the achievement of any performance conditions being required, and the Award is not being granted
in lieu of any other cash compensation the Participant is to receive that would be payable over a shorter period of time, then
unless the applicable Agreement provides otherwise, the Award shall become exercisable, non-forfeitable and transferable or earned
and payable with respect to twenty-five percent (25%) of the underlying shares of Common Stock (or any amounts payable thereunder
for Awards denoted in dollars) on each of the first, second, third and fourth anniversaries of the date of grant (subject to acceleration
of vesting, to the extent permitted by the Plan and the Committee, in the event of a Change in Control or the Participant’s
death, Disability, Retirement or involuntary termination of employment or service (including a voluntary termination of employment
or service for good reason). Notwithstanding any provision of the Plan providing for the maximum term of an Award, in the event
any Award would expire prior to exercise, vesting or settlement because trading in shares of Common Stock is prohibited by law
or by any insider trading policy of the Company, the term of the Award shall automatically be extended until thirty (30) days after
the expiration of any such prohibitions to permit the Participant to realize the value of the Award, provided such extension with
respect to the applicable Award (i) is permitted by law, (ii) does not result in a violation of Section 409A with respect to the
Award, (iii) permits any Award that is intended to constitute “qualified performance-based compensation” within the
meaning of Code Section 162(m) to continue to so qualify and (iv) does not otherwise adversely impact the tax consequences of the
Award (such as for incentive stock options and related Awards). An Agreement may provide that the Award will be automatically,
and without any action by the Participant, deemed exercised, by means of a “net exercise” procedure, immediately prior
to the expiration of the Award if the then Fair Market Value of the underlying shares of Common Stock at that time exceeds the
exercise or purchase price or base value of the Award, in order to permit the Participant to realize the value of the Award. With
respect to an Option and its Corresponding SAR, the Agreement may provide which Award will be deemed exercised. If the Agreement
does not so provide, the Option shall be deemed exercised and the Corresponding SAR shall expire unexercised.

 

    	 	-26-	 

     

    

 

14.09     Non
U. S. Participants

 

The Committee may grant Awards
to Participants located outside of the United States of America. Notwithstanding any other provision of the Plan (other than the
limitations of Section 6.02 and Section 19.13) the terms of such Awards shall be as the Committee, in its sole discretion, determines
as appropriate and permitted under the law that applies to any Award granted to Participants located outside of the United States
of America.

 

ARTICLE XV

QUALIFIED PERFORMANCE-BASED
COMPENSATION

 

15.01     Performance
Conditions

 

In accordance with the Plan,
the Committee may prescribe that Awards will become exercisable, nonforfeitable and transferable, and earned and payable, based
on objectively determinable performance conditions. Objectively determinable performance conditions are performance conditions
(i) that are established in writing (a) at the time of grant or (b) no later than the earlier of (x) 90 days after the beginning
of the period of service to which they relate and (y) before the lapse of 25% of the period of service to which they relate; (ii)
that are uncertain of achievement at the time they are established and (iii) the achievement of which is determinable by a third
party with knowledge of the relevant facts. The performance conditions may be stated with respect to (a) revenue, (b) earnings
before interest, taxes, depreciation and amortization (“EBITDA”), (c) cash earnings (earnings before amortization
of intangibles), (d) operating income, (e) pre-or after-tax income, (f) earnings per share, (g) net cash flow, (h) net cash flow
per share, (i) net earnings, (j) return on equity, (k) return on total capital, (l) return on sales, (m) return on net assets employed,
(n) return on assets or net assets, (o) share price performance, (p) total shareholder return, (q) improvement in or attainment
of expense levels, (r) improvement in or attainment of working capital levels, (s) net sales, (t) revenue growth or product revenue
growth, (u) operating income (before or after taxes), (v) pre-or after-tax income (before or after allocation of corporate overhead
and bonus), (w) earnings per share; (x) return on equity, (y) appreciation in and/or maintenance of the price of the shares of
Common, (z) market share, (aa) gross profits, (bb) comparisons with various stock market indices; (cc) reductions in cost, (dd)
cash flow or cash flow per share (before or after dividends), (ee) return on capital (including return on total capital or return
on invested capital), (ff) cash flow return on investments; (gg) improvement in or attainment of expense levels or working capital
levels, (hh) shareholder equity. Any performance goals that are financial metrics may be determined in accordance with United States
Generally Accepted Accounting Principles (“GAAP”) or may be adjusted when established to include or exclude
any items otherwise includable or excludable under GAAP. The business criteria above, may be related to a specific customer or
group of customers or products or geographic region. The form of the performance conditions may be measured on a Company, Affiliate,
product, division, business unit, service line, segment or geographic basis, individually, alternatively or in any combination,
subset or component thereof. Performance goals may include one or more of the foregoing business criteria, either individually,
alternatively or any combination, subset or component. Performance goals may reflect absolute performance or a relative comparison
of the performance to the performance of a peer group or index or other external measure of the selected business criteria. Profits,
earnings and revenues used for any performance condition measurement may exclude any extraordinary or non-recurring items. The
performance conditions may, but need not, be based upon an increase or positive result under the aforementioned business criteria
and could include, for example and not by way of limitation, maintaining the status quo or limiting the economic losses (measured,
in each case, by reference to the specific business criteria). The performance conditions may not include solely the mere continued
employment of the Participant. However, the Award may become exercisable, nonforfeitable and transferable or earned and payable
contingent on the Participant’s continued employment or service, and/or employment or service at the time the Award becomes
exercisable, nonforfeitable and transferable or earned and payable, in addition to the performance conditions described above.
The Committee shall have the sole discretion to select one or more periods of time over which the attainment of one or more of
the foregoing performance conditions will be measured for the purpose of determining a Participant’s right to, and the settlement
of, an Award that will become exercisable, nonforfeitable and transferable or earned and payable based on performance conditions.

 

    	 	-27-	 

     

    

 

15.02     Establishing
the Amount of the Award

 

The amount of the Award that
will become exercisable, nonforfeitable and transferable or earned and payable if the performance conditions are obtained (or an
objective formula for, or method of, computing such amount) also must be established at the time set forth in Section 15.01 above.
Notwithstanding the preceding sentence, the Committee may, in its sole discretion, reduce the amount of the Award that will become
exercisable, nonforfeitable and transferable or earned and payable, as applicable, if the Committee determines that such reduction
is appropriate under the facts and circumstances. In no event shall the Committee have the discretion to increase the amount of
the Award that will become exercisable, nonforfeitable and transferable or earned and payable.

 

15.03     Earning
the Award

 

If the Committee, on the
date of grant, prescribes that an Award shall become exercisable, nonforfeitable and transferable or earned and payable only upon
the attainment of any of the above enumerated performance conditions, the Award shall become exercisable, nonforfeitable and transferable
or earned and payable only to the extent that the Committee certifies in writing that such conditions have been achieved. An Award
will not satisfy the requirements of this Article XV to constitute “qualified performance-based compensation” if the
facts and circumstances indicate the Award will become exercisable, nonforfeitable and transferable or earned and payable regardless
of whether the performance conditions are attained. However, an Award does not fail to meet the requirements of this Article XV
merely because the Award would become exercisable, nonforfeitable and transferable or earned and payable upon the Participant’s
death or Disability or upon a Change in Control, although an Award that actually becomes exercisable, nonforfeitable and transferable
or earned and payable on account of those events prior to the attainment of the performance conditions would not constitute “qualified
performance-based compensation” under Code Section 162(m). In determining if the performance conditions have been achieved,
the Committee may adjust the performance targets in the event of any unbudgeted acquisition, divestiture or other unexpected fundamental
change in the business of the Company, an Affiliate or business unit or in any product that is material taken as a whole as appropriate
to fairly and equitably determine if the Award is to become exercisable, nonforfeitable and transferable or earned and payable
only pursuant to the conditions set forth in the Award. Additionally, in determining if such performance conditions have been achieved,
the Committee also may adjust the performance targets in the event of any (a) unanticipated asset write-downs or impairment charges,
(b) litigation or claim judgments or settlements thereof, (c) changes in tax laws, accounting principles or other laws or provisions
affecting reported results, (d) costs and accruals for reorganization or restructuring programs, or extraordinary, unusual, infrequently
occurring or non-recurring, (e) acquisitions or dispositions or (f) foreign exchange gains or losses. To the extent any such adjustments
would affect Awards, the intent is that they shall be in a form that allows the Award to continue to meet the requirements of Code
Section 162(m) for deductibility and, to the extent required under Code Section 162(m) for “qualified performance-based compensation,”
set forth in the applicable Agreement.

 

    	 	-28-	 

     

    

 

15.04     Performance
Awards

 

The purpose of this Article
XV is to permit the grant of Awards that constitute “qualified performance-based compensation” within the meaning of
Code Section 162(m). The Committee may specify that the Award is intended to constitute “qualified performance-based compensation”
by conditioning the right of the Participant to exercise the Award or have it settled, and the timing thereof, upon achievement
or satisfaction of any of the enumerated performance criteria and conditions set forth in this Article XV. Notwithstanding the
foregoing, the Committee may grant an Award that is subject to the achievement or satisfaction of performance conditions that are
not specifically set forth herein to the extent the Committee does not intend for such Award to constitute “qualified performance-based
compensation” within the meaning of Code Section 162(m).

 

ARTICLE XVI

ADJUSTMENT UPON CHANGE
IN COMMON STOCK

 

16.01     General
Adjustments

 

The maximum number of shares
of Common Stock that may be issued pursuant to Awards, the terms of outstanding Awards and the per individual limitations on the
number of shares of Common Stock that may be issued pursuant to Awards shall be adjusted as the Committee shall determine to be
equitably required in the event (a) there occurs a reorganization, recapitalization, stock split, spin-off, split-off, stock dividend,
issuance of stock rights, combination of shares, merger, consolidation or distribution (stock or cash) to stockholders other than
an ordinary cash dividend; (b) the Company engages in a transaction Code Section 424 describes; or (c) there occurs any other transaction
or event which, in the judgment of the Board, necessitates such action. In that respect, the Committee shall make such adjustments
as are necessary in the number or kind of shares of Common Stock or securities which are subject to the Award, the exercise price
or Initial Value of the Award and such other adjustments as are appropriate in the discretion of the Committee. Such adjustments
may provide for the elimination of fractional shares that might otherwise be subject to Awards without any payment therefor. Notwithstanding
the foregoing, the conversion of one or more outstanding shares of preferred stock or convertible debentures that the Company may
issue from time to time into Common Stock shall not in and of itself require any adjustment under this Article XVI. In addition,
the Committee may make such other adjustments to the terms of any Awards to the extent equitable and necessary to prevent an enlargement
or dilution of the Participant’s rights thereunder as a result of any such event or similar transaction. Any determination
made under this Article XVI by the Committee shall be final and conclusive.

 

    	 	-29-	 

     

    

 

16.02     No
Adjustments

 

The issuance by the Company
of stock of any class, or securities convertible into stock of any class, for cash or property, or for labor or services, either
upon direct sale or upon the exercise of rights or warrants to subscribe therefor, or upon conversion of stock or obligations of
the Company convertible into such stock or other securities, shall not affect, and no adjustment by reason thereof shall be made
with respect to, the maximum number of shares that may be issued pursuant to Awards, the per individual limitations on the number
of shares that may be issued pursuant to Awards or the terms of outstanding Awards.

 

16.03     Substitute
Awards

 

The Committee may grant Awards
in substitution for Options, SARs, restricted stock, Restricted Stock Units, Incentive Awards or similar Awards held by an individual
who becomes an employee of the Company or an Affiliate in connection with a transaction described in the first paragraph of Section
16.01. Notwithstanding any provision of the Plan (other than the limitation of Section 6.02), the terms of such substituted Awards
shall be as the Committee, in its discretion, determines is appropriate.

 

16.04     Limitation
on Adjustments

 

Notwithstanding the foregoing,
no adjustment hereunder shall be authorized or made if and to the extent the existence of such authority or action (a) would cause
Awards under the Plan that are intended to qualify as “qualified performance-based compensation” under Code Section
162(m) to otherwise fail to qualify as “qualified performance-based compensation,” (b) would cause the Committee to
be deemed to have the authority to change the targets, within the meaning of Code Section 162(m), under performance goals or relating
to Awards granted to Named Executive Officers and intended to qualify as “qualified performance-based compensation”
under Code Section 162(m), (c) would cause a Non-409A Award to be subject to Code Section 409A, (d) would violate Code Section
409A for a 409A Award, (e) would cause a modification of an incentive stock option under Code Section 424 and loss of treatment
as an incentive stock option or (f) would adversely affect any exemption under Rule 16b-3 of the Exchange Act, unless the Committee
determines that such adjustment is necessary and specifically acknowledges that the adjustment will be made notwithstanding any
such result.

 

    	 	-30-	 

     

    

 

ARTICLE XVII

COMPLIANCE WITH LAW
AND APPROVAL OF REGULATORY BODIES

 

17.01     Compliance

 

No Option or SAR shall be
exercisable, no Restricted Stock Award, Restricted Stock Unit, Incentive Award, Other Stock-Based Award, Dividend Equivalents or
Cash Awards shall be granted or settled, no shares of Common Stock shall be issued, no certificates for shares of Common Stock
shall be delivered and no payment shall be made under this Plan except in compliance with all applicable federal and state laws
and regulations (including, without limitation, withholding tax requirements), any listing agreement to which the Company is a
party and the rules of all domestic stock exchanges on which the Company’s shares may be listed. The Company shall have the
right to rely on an opinion of its counsel as to such compliance. Any stock certificate evidencing shares of Common Stock issued
pursuant to an Award may bear such legends and statements as the Committee may deem advisable to assure compliance with federal
and state laws and regulations and to reflect any other restrictions applicable to such shares as the Committee otherwise deems
appropriate. No Option or SAR shall be exercisable, no Restricted Stock Award, Restricted Stock Unit, Incentive Award, Other Stock-Based
Award, Dividend Equivalents or Cash Awards shall be granted or settled, no shares of Common Stock shall be issued, no certificate
for shares of Common Stock shall be delivered and no payment shall be made under this Plan until the Company has obtained such
consent or approval as the Committee may deem advisable from regulatory bodies having jurisdiction over such matters.

 

17.02     Postponement
of Exercise or Payment

 

The Committee may postpone
any grant, exercise, vesting or payment of an Award for such time as the Committee in its sole discretion may deem necessary in
order to permit the Company (i) to effect, amend or maintain any necessary registration of the Plan or the shares of Common Stock
issuable pursuant to the Award under the securities laws; (ii) to take any action in order to (A) list such shares of Common Stock
or other shares of stock of the Company on a stock exchange if shares of Common Stock or other shares of stock of the Company are
not then listed on such exchange or (B) comply with restrictions or regulations incident to the maintenance of a public market
for its shares of Common Stock or other shares of stock of the Company, including any rules or regulations of any stock exchange
on which the shares of Common Stock or other shares of stock of the Company are listed; (iii) to determine that such shares of
Common Stock in the Plan are exempt from such registration or that no action of the kind referred to in (ii)(B) above needs to
be taken; (iv) to comply with any other applicable law, including without limitation, securities laws; (v) to comply with any legal
or contractual requirements during any such time the Company or any Affiliate is prohibited from doing any of such acts under applicable
law, including without limitation, during the course of an investigation of the Company or any Affiliate, or under any contract,
loan agreement or covenant or other agreement to which the Company or any Affiliate is a party or (vi) to otherwise comply with
any prohibition on such acts or payments during any applicable blackout period; and the Company shall not be obligated by virtue
of any terms and conditions of any Agreement or any provision of the Plan to recognize the grant, exercise, vesting or payment
of an Award or to grant, sell or issue shares of Common Stock or make any such payments in violation of the securities laws or
the laws of any government having jurisdiction thereof or any of the provisions hereof. Any such postponement shall not extend
the term of the Award and neither the Company nor its directors and officers nor the Committee shall have any obligation or liability
to any Participant or to any other person with respect to shares of Common Stock or payments as to which the Award shall lapse
because of such postponement.

 

    	 	-31-	 

     

    

 

Additionally, the Committee
may postpone any grant, exercise vesting or payment of an Award if the Company reasonably believes the Company's or any applicable
Affiliate's deduction with respect to such Award would be limited or eliminated by application of Code Section 162(m) to the extent
permitted by Code Section 409A; provided, however, that such delay will last only until the earliest date at which
the Company reasonably anticipates that the deduction with respect to the Award will not be limited or eliminated by the application
of Code Section 162(m) or the calendar year in which the Participant separates from service.

 

17.03     Forfeiture
or Reimbursement

 

A Participant shall be required
to forfeit any and all rights under Awards or to reimburse the Company for any payment under any Award (with interest as necessary
to avoid imputed interest or original issue discount under the Code or as otherwise required by applicable law) to the extent applicable
law or any applicable claw-back or recoupment policy of the Company or any of its Affiliates requires such forfeiture or reimbursement.

 

ARTICLE XVIII

LIMITATION ON BENEFITS

 

Despite any other provisions
of this Plan to the contrary, if the receipt of any payments or benefits under this Plan would subject a Participant to tax under
Code Section 4999, the Committee may determine whether some amount of payments or benefits would meet the definition of a “Reduced
Amount.” If the Committee determines that there is a Reduced Amount, the total payments or benefits to the Participant under
all Awards must be reduced to such Reduced Amount, but not below zero. It is the intention of the Company and the Participant to
reduce the payments under this Plan only if the aggregate Net After Tax Receipts to the Participant would thereby be increased.
If the Committee determines that the benefits and payments must be reduced to the Reduced Amount, the Company must promptly notify
the Participant of that determination, with a copy of the detailed calculations by the Committee. All determinations of the Committee
under this Article XVIII are final, conclusive and binding upon the Company and the Participant. As result of the uncertainty in
the application of Code Section 4999 at the time of the initial determination by the Committee under this Article XVIII, however,
it is possible that amounts will have been paid under the Plan to or for the benefit of a Participant which should not have been
so paid (“Overpayment”) or that additional amounts which will not have been paid under the Plan to or for the
benefit of a Participant could have been so paid (“Underpayment”), in each case consistent with the calculation
of the Reduced Amount. If the Committee, based either upon the assertion of a deficiency by the Internal Revenue Service against
the Company or the Participant, which the Committee believes has a high probability of success, or controlling precedent or other
substantial authority, determines that an Overpayment has been made, any such Overpayment must be treated for all purposes as a
loan, to the extent permitted by applicable law, which the Participant must repay to the Company together with interest at the
applicable federal rate under Code Section 7872(f)(2); provided, however, that no such loan may be deemed to have
been made and no amount shall be payable by the Participant to the Company if and to the extent such deemed loan and payment would
not either reduce the amount on which the Participant is subject to tax under Code Sections 1, 3101 or 4999 or generate a refund
of such taxes. If the Committee, based upon controlling precedent or other substantial authority, determines that an Underpayment
has occurred, the Committee must promptly notify the Company of the amount of the Underpayment, which then shall be paid promptly
to the Participant but no later than the end of the Participant’s taxable year next following the Participant’s taxable
year in which the determination is made that the Underpayment has occurred. For purposes of this Section, (a) “Net After
Tax Receipt” means the Present Value of a payment under this Plan net of all taxes imposed on Participant with respect
thereto under Code Sections 1, 3101 and 4999, determined by applying the highest marginal rate under Code Section 1 which applies
to the Participant’s taxable income for the applicable taxable year; (b) “Present Value” means the value
determined in accordance with Code Section 280G(d)(4); and (c) “Reduced Amount” means the smallest aggregate
amount of all payments and benefits under this Plan which (i) is less than the sum of all payments and benefits under this Plan
and (ii) results in aggregate Net After Tax Receipts which are equal to or greater than the Net After Tax Receipts which would
result if the aggregate payments and benefits under this Plan were any other amount less than the sum of all payments and benefits
to be made under this Plan.

 

    	 	-32-	 

     

    

 

ARTICLE XIX

GENERAL PROVISIONS

 

19.01     Effect
on Employment and Service

 

Neither the adoption of this
Plan, its operation nor any documents describing or referring to this Plan (or any part thereof), shall confer upon any individual
or entity any right to continue in the employ or service of the Company or an Affiliate or in any way affect any right and power
of the Company or an Affiliate to terminate the employment or service of any individual or entity at any time with or without assigning
a reason therefor.

 

19.02     Unfunded
Plan

 

This Plan, insofar as it
provides for Awards, shall be unfunded, and the Company shall not be required to segregate any assets that may at any time be represented
by Awards under this Plan. Any liability of the Company to any Person with respect to any Award under this Plan shall be based
solely upon any contractual obligations that may be created pursuant to this Plan. No such obligation of the Company shall be deemed
to be secured by any pledge of, or other encumbrance on, any property of the Company.

 

19.03     Rules
of Construction

 

Headings are given to the
articles and sections of this Plan solely as a convenience to facilitate reference. The reference to any statute, regulation or
other provision of law shall be construed to refer to any amendment to or successor of such provision of law.

 

    	 	-33-	 

     

    

 

19.04     Tax
Withholding and Reporting

 

Unless an Agreement provides
otherwise, each Participant shall be responsible for satisfying in cash or cash equivalent any income and employment (including,
without limitation, Social Security and Medicare) tax withholding obligations, if applicable, attributable to participation in
the Plan and the grant, exercise, vesting or payment of Awards granted hereunder (including the making of a Code Section 83(b)
election with respect to an Award). In accordance with procedures that the Committee establishes, the Committee, to the extent
applicable law permits and only to the extent using shares of Common Stock to pay applicable withholdings would not cause adverse
accounting consequences, may allow a Participant to pay any such applicable amounts (a) by surrendering (actually or by attestation)
shares of Common Stock that the Participant already owns; (b) by a cashless exercise, or surrender of shares of Common Stock already
owned, through a broker; (c) by means of a “net exercise” procedure by the surrender of shares of Common Stock to which
the Participant is otherwise entitled under the Award; (d) by such other medium of payment as the Committee, in its discretion,
shall authorize; or (e) by any combination of the aforementioned methods of payment. The Company shall comply with all such reporting
and other requirements relating to the administration of this Plan and the grant, exercise, vesting or payment of any Award hereunder
as applicable law requires.

 

19.05     Code
Section 83(b) Election

 

The Committee must approve
in advance whether a Participant may make an election under Code Section 83(b) with respect to any Award (to include in gross income
in the year of transfer the amounts specified in Code Section 83(b)) or under similar laws may be made. In any case in which a
Participant is permitted to make such an election in connection with an Award, the Participant shall notify the Company of such
election within ten (10) days of filing notice of the election with the Internal Revenue Service or other governmental authority,
in addition to any filing and notification required pursuant to regulations issued under Code Section 83(b) or other applicable
provisions.

 

19.06     Reservation
of Shares

 

The Company, during the term
of this Plan, shall at all time reserve and keep available such number of shares of Common Stock as shall be sufficient to satisfy
the requirements of the Plan. Additionally, the Company, during the term of this Plan, shall use its best efforts to seek to obtain
from appropriate regulatory agencies any requisite authorizations needed in order to issue and to sell such number of shares of
Common Stock as shall be sufficient to satisfy the requirements of the Plan. However, the inability of the Company to obtain from
any such regulatory agency the requisite authorizations the Company’s counsel deems to be necessary for the lawful issuance
and sale of any shares of Common Stock hereunder, or the inability of the Company to confirm to its satisfaction that any issuance
and sale of any shares of Common Stock hereunder will meet applicable legal requirements, shall relieve the Company of any liability
in respect to the failure to issue or to sell such shares of Common Stock as to which such requisite authority shall not have been
obtained.

 

    	 	-34-	 

     

    

 

19.07     Governing
Law

 

This Plan and all Awards
granted hereunder shall be governed by the laws of the State of California, except to the extent federal law applies; provided,
however, that in the event the Company reincorporates in a state other than California, this Plan and the Awards granted hereunder
shall be governed by the laws of such state of reincorporation.

 

19.08     Other
Actions

 

Nothing in the Plan shall
be construed to limit the authority of the Company to exercise its corporate rights and powers, including, by way of illustration
and not by way of limitation, the right to grant Options, SARs, Restricted Stock Awards, Restricted Stock Units, Incentive Awards,
Other Stock-Based Awards or Dividend Equivalents for proper corporate purposes otherwise than under the Plan to any employee or
to any other Person, firm, corporation, association or other entity, or to grant Options, SARs, Restricted Stock Awards, or Restricted
Stock Units, Incentive Awards, Other Stock-Based Awards or Dividend Equivalents to, or assume such Awards of any Person in connection
with, the acquisition, purchase, lease, merger, consolidation, reorganization or otherwise, of all or any part of the business
and assets of any Person, firm, corporation, association or other entity.

 

19.09     Repurchase
of Common Stock

 

Subject to Section 19.13
below, the Company or its designee may have the option and right to purchase any Award or any shares of Common Stock issued pursuant
to any Award in accordance with the terms and conditions set forth in the applicable Agreement. However, shares of Common Stock
repurchased pursuant to an Agreement will still be deemed issued pursuant to the Plan and will not be available for issuance pursuant
to future Awards under the Plan (not counting for this purpose any shares of Common Stock repurchased in connection with the lapse
or forfeiture of any Restricted Stock Award).

 

19.10     Other
Conditions

 

The Committee, in its discretion,
may require the Participant on or before the date of grant, exercise, payment or settlement of an Award to enter into (i) a confidentiality,
non-solicitation, non-competition, non-disparagement or other similar agreement with the Company or any Affiliate, which may become
effective on the date of termination of employment or service of the Participant with the Company or any Affiliate or any other
date the Committee may specify and shall contain such terms and conditions as the Committee shall otherwise specify, (ii) an agreement
to cancel any other employment agreement, service agreement, fringe benefit or compensation arrangement in effect between the Company
or any Affiliate and such Participant and/or (iii) a shareholders' agreement with respect to shares of Common Stock to be issued
pursuant to the Award. If the Participant should fail to enter into any such agreement at the Committee's request, then no Award
shall be granted, exercised, paid or settled and the number of shares of Common Stock that would have been subject to such Award,
if any, shall be added to the remaining shares of Common Stock available under the Plan. In the event the Participant should enter
into any such confidentiality, non-solicitation, non-competition, non-disparagement or other similar agreement with the Company
or any Affiliate, as a condition to the grant, exercise, payment or settlement of the Award, and the Participant subsequently breach
or violate any provision of such agreement, then the Participant shall forfeit any and all further rights under such Award and
the Clawback Requirement shall be triggered.

 

    	 	-35-	 

     

    

 

19.11     Forfeiture
Provisions

 

Notwithstanding any other
provisions of the Plan or any Agreement, all rights to any Award that a Participant has will be immediately discontinued and forfeited,
and the Company shall not have any further obligation hereunder to the Participant with respect to any Award and the Award will
not be exercisable (whether or not previously exercisable) or become vested or payable on and after the time the Participant is
discharged from employment or service with the Company or any Affiliate for Cause.

 

19.12     Legends;
Payment of Expenses

 

The Company may endorse such
legend or legends upon the certificates for shares of Common Stock issued upon the grant or exercise of an Award and may issue
such "stop transfer" instructions to its transfer agent in respect of such shares as it determines, in its sole discretion,
to be necessary or appropriate to (i) prevent a violation of, or to perfect an exemption from, the registration requirements under
the Exchange Act, applicable state securities laws or other requirements, (b) implement the provisions of the Plan or any Agreement
between the Company and the Participant with respect to such shares of Common Stock, (c) permit the Company to determine the occurrence
of a “disqualifying disposition” as described in Code Section 421(b) of the shares of Common Stock transferred upon
the exercise of an incentive stock option granted under the Plan or (d) as may be appropriate to continue an Award’s exemption
or compliance with Code Section 409A. The Company shall pay all issuance taxes with respect to the issuance of shares of Common
Stock upon the grant or exercise of the Award, as well as all fees and expenses incurred by the Company in connection with such
issuance.

 

19.13     Repricing
of Awards

 

Notwithstanding any other
provisions of this Plan, except for adjustments pursuant to Article XVI or to the extent approved by the Company’s stockholders
and consistent with the rules of any stock exchange on which the Company’s securities are traded, this Plan does not permit
(a) any decrease in the exercise or purchase price or base value of any outstanding Awards, (b) the issuance of any replacement
Options, SARs or Other Stock-Based Awards in the nature of purchase rights which shall be deemed to occur if a Participant agrees
to forfeit an existing Option, SAR or Other Stock-Based Award in the nature of purchase rights in exchange for a new Option, SAR
or Other Stock-Based Award in the nature of purchase rights with a lower exercise or purchase price or base value, (c) the Company
to repurchase underwater or out-of-the-money Options, SARs or Other Stock-Based Awards in the nature of purchase rights, which
shall be deemed to be those Options, SARs or Other Stock-Based Awards in the nature of purchase rights with exercise or purchase
prices or base values in excess of the current Fair Market Value of the shares of Common Stock underlying the Option, SAR or Other
Stock-Based Award in the nature of purchase rights, (d) the issuance of any replacement or substitute Awards or the payment of
cash in exchange for, or in substitution of, underwater or out-of-the-money Options, SARs or Other Stock-Based Awards in the nature
of purchase rights, (e) the Company to repurchase any Award if the Award has not become exercisable, vested or payable prior to
the repurchase or (f) any other action that is treated as a repricing under generally accepted accounting principles.

 

    	 	-36-	 

     

    

 

19.14     Right
of Setoff

 

The Company or an Affiliate
may, to the extent permitted by applicable law, deduct from and setoff against any amounts the Company or Affiliate may owe the
Participant from time to time, including amounts payable in connection with any Award, owed as wages, fringe benefits or other
compensation owed to the Participant, such amounts as may be owed by the Participant to the Company or Affiliate, including but
not limited to any amounts owed under the Plan, although the Participant shall remain liable for any part of the Participant’s
obligation not satisfied through such deduction and setoff. By accepting any Award granted hereunder, the Participant agrees to
any deduction or setoff hereunder.

 

19.15     Fractional
Shares

 

No fractional shares of Common
Stock shall be issued or delivered pursuant to the Plan or any Award. The Committee shall determine whether cash, other Awards
or other property shall be issued or paid in lieu of such fractional shares or whether such fractional shares or any rights thereof
shall be forfeited or otherwise eliminated.

 

19.16     Compensation
Recoupment Policy

 

Notwithstanding any other
provision of this Plan or any Agreement to the contrary, any Award received by the Participant and/or shares of Common Stock issued
and/or cash paid hereunder, and/or any amount received with respect to any sale of any such shares of Common Stock, shall be subject
to potential cancellation, recoupment, rescission, payback or other action in accordance with the terms of the Company’s
Compensation Recoupment Policy, as it may be amended from time to time. By acceptance of the Award, the Participant agrees and
consents to the Company’s application, implementation and enforcement of (a) the Compensation Recoupment Policy or any similar
policy established by the Company or any Affiliate that may apply to the Participant and (b) any provision of applicable law relating
to cancellation, rescission, payback or recoupment of compensation, and expressly agrees that the Company may take such actions
as are necessary to effectuate the Compensation Recoupment Policy, any similar policy (as applicable to the Participant) or applicable
law without further consent or action being required by the Participant. To the extent that the terms of this Plan or any Agreement
and the Compensation Recoupment Policy or any similar policy conflict, then the terms of such policy shall prevail.

 

ARTICLE XX

CLAIMS PROCEDURES

 

20.01     Initial
Claim

 

If a Participant has exercised
an Option or SAR or if shares of Restricted Stock have become vested or Restricted Stock Units, Incentive Awards, Other Stock-Based
Awards or Dividend Equivalents have become payable, and the Participant has not received the benefits to which the Participant
believes he or she is entitled under such Award, then the Participant must submit a written claim for such benefits to the Committee
within ninety (90) days of the date the Participant tried to exercise the Option or SAR, the date the Participant contends the
Restricted Stock vested or the date the Participant contends the Restricted Stock Units, Incentive Awards, or Other Stock-Based
Awards of Dividend Equivalents became payable or the claim will be forever barred.

 

    	 	-37-	 

     

    

 

20.02     Appeal
of Claim

 

If a claim of a Participant
is wholly or partially denied, the Participant or his duly authorized representative may appeal the denial of the claim to the
Committee. Such appeal must be made at any time within thirty (30) days after the Participant receives written notice from the
Company of the denial of the claim. In connection therewith, the Participant or his duly authorized representative may request
a review of the denied claim, may review pertinent documents and may submit issues and comments in writing. Upon receipt of an
appeal, the Committee shall make a decision with respect to the appeal and, not later than sixty (60) days after receipt of such
request for review, shall furnish the Participant with the decision on review in writing, including the specific reasons for the
decision written in a manner calculated to be understood by the Participant, as well as specific references to the pertinent provisions
of the Plan upon which the decision is based.

 

20.03     Time
to File Suit

 

The Committee has the discretionary
and final authority under the Plan to determine the validity of a claim. Accordingly, any decision the Committee makes on a Participant’s
appeal will be administratively final. If a Participant disagrees with the Committee’s final decision, the Participant may
sue, but only after the claim on appeal has been denied. Any lawsuit must be filed within ninety (90) days of receipt of the Committee’s
final written denial of the Participant’s claim or the claim will be forever barred.

 

ARTICLE XXI

AMENDMENT

 

21.01     Amendment
of Plan

 

The Board may amend or terminate
this Plan at any time; provided, however, that no amendment to the Plan may materially adversely impair the rights of a Participant
with respect to outstanding Awards without the Participant’s consent. In addition, an amendment will be contingent on approval
of the Company’s stockholders, to the extent required by law or any tax or regulatory requirement applicable to the Plan
or by the rules of any stock exchange on which the Company’s securities are traded or if the amendment would (i) increase
the benefits accruing to Participants under the Plan, including without limitation, any amendment to the Plan or any Agreement
to permit a repricing of any outstanding Awards under Section 19.13, (ii) increase the aggregate number of shares of Common Stock
that may be issued under the Plan, (iii) modify the requirements as to eligibility for participation in the Plan, or (iv) change
the performance conditions set forth in Article XV of the Plan for Awards that intended to constitute “qualified performance-based
compensation” within the meaning of Code Section 162(m). Additionally, to the extent the Board deems necessary to continue
to comply with the performance-based exception to the deduction limits of Code Section 162(m), the Board will resubmit the material
terms of the performance conditions set forth in Article XV to the Company’s stockholders for approval no later than the
first stockholder meeting that occurs in the fifth (5th) year following the year in which the stockholders previously
approved the performance objectives. Notwithstanding any other provision of the Plan, any termination of the Plan shall comply
with the requirements of Code Section 409A with regard to any 409A Awards.

 

    	 	-38-	 

     

    

 

21.02     Amendment
of Awards

 

The Committee may amend any
outstanding Awards to the extent it deems appropriate; provided, however, that no amendment to an outstanding Award may adversely
impair the rights of a Participant without the Participant’s consent.

 

ARTICLE XXII

SECTION 409A PROVISION

 

22.01     Intent
of Awards

 

It is intended that Awards
that are granted under the Plan shall be exempt from treatment as “deferred compensation” subject to Code Section 409A
unless otherwise specified by the Committee. Towards that end, all Awards under the Plan are intended to contain such terms as
will qualify the Awards for an exemption from Code Section 409A unless otherwise specified by the Committee. The terms of the Plan
and all Awards granted hereunder shall be construed consistent with the foregoing intent. Notwithstanding any other provision hereof,
the Committee may amend any outstanding Award without Participant’s consent if, as determined by the Committee, in its sole
discretion, such amendment is required either to (a) confirm exemption under Code Section 409A, (b) comply with Code Section 409A
or (c) prevent the Participant from being subject to any tax or penalty under Code Section 409A. Notwithstanding the foregoing,
however, neither the Company nor any of its Affiliates nor the Committee shall be liable to a Participant or any other Person if
an Award that is subject to Code Section 409A or the Participant or any other Person is otherwise subject to any additional tax,
interest or penalty under Code Section 409A. Each Participant is solely responsible for the payment of any tax liability (including
any taxes, penalties and interest that may arise under Code Section 409A) that may result from an Award.

 

22.02     409A
Awards

 

The Committee may grant Awards
under the Plan that are intended to be 409A Awards that comply with Code Section 409A. The terms of such 409A Award, including
any authority by the Company and the rights of the Participant with respect to such 409A Award, will be subject to such rules and
limitations and shall be interpreted in a manner as to comply with Code Section 409A.

 

    	 	-39-	 

     

    

 

22.03     Election
Requirements

 

If a Participant is permitted
to elect to defer an Award or any payment under an Award, such election shall be made in accordance with the requirements of Code
Section 409A. Each initial deferral election (an “Initial Deferral Election”) must be received by the Committee
prior to the following dates or will have no effect whatsoever:

 

		(a)	Except as otherwise provided below, the September 30 immediately preceding the year in which the
compensation is earned;

 

		(b)	With respect to any annual or long-term incentive pay which qualifies as “performance-based
compensation” within the meaning of Code Section 409A, by the date six (6) months prior to the end of the performance measurement
period applicable to such incentive pay provided such additional requirements set forth in Code Section 409A are met;

 

		(c)	With respect to “fiscal year compensation” as defined under Code Section 409A, by the
last day of the Company’s fiscal year immediately preceding the year in which the fiscal year compensation is earned; or

 

		(d)	With respect to mid-year Awards or other legally binding rights to a payment of compensation in
a subsequent year that is subject to a forfeiture condition requiring the Participant’s continued service for a period of
at least twelve (12) months, on or before the thirtieth (30th) day following the grant of such Award, provided that
the election is made at least twelve (12) months in advance of the earliest date at which the forfeiture condition could lapse.

 

The Committee may, in its
sole discretion, permit Participants to submit additional deferral elections in order to delay, but not to accelerate, a payment,
or to change the form of payment of an amount of deferred compensation (a “Subsequent Deferral Election”), if,
and only if, the following conditions are satisfied: (a) the Subsequent Deferral Election must not take effect until twelve (12)
months after the date on which it is made, (b) in the case of a payment other than a payment attributable to the Participant’s
death, disability or an unforeseeable emergency (all within the meaning of Code Section 409A) the Subsequent Deferral Election
further defers the payment for a period of not less than five (5) years from the date such payment would otherwise have been made
and (c) the Subsequent Deferral Election is received by the Committee at least twelve (12) months prior to the date the payment
would otherwise have been made. In addition, Participants may be further permitted to revise the form of payment they have elected,
or the number of installments elected, provided that such revisions comply with the requirements of a Subsequent Deferral Election.

 

22.04     Time
of Payment

 

The time and form of payment
of a 409A Award shall be as set forth in an applicable Agreement. A 409A Award may only be paid in connection with a separation
from service, a fixed time, death, disability, Change in Control or an unforeseeable emergency within the meaning of Code Section
409A. The time of distribution of the 409A Award must be fixed by reference to the specified payment event. Notwithstanding the
foregoing, if the time of distribution of the 409A Award is not set forth in the applicable Agreement, then the time of distribution
of the 409A Award shall be within two and one-half months of the end of the later of the calendar year or the fiscal year of the
Company or Affiliate that employs the Participant in which the 409A Award becomes vested and no longer subject to a substantial
risk of forfeiture within the meaning of Code Section 409A. For purposes of Code Section 409A, each installment payment
will be treated as the entitlement to a single payment.

 

    	 	-40-	 

     

    

 

22.05     Acceleration
or Deferral

 

The Company shall have no
authority to accelerate or delay or change the form of any distributions relating to 409A Awards except as permitted under Code
Section 409A.

 

22.06     Distribution
Requirements

 

Any distribution of a 409A
Award triggered by a Participant’s termination of employment shall be made only at the time that the Participant has had
a separation from service within the meaning of Code Section 409A. A separation from service shall occur where it is reasonably
anticipated that no further services will be performed after that date or that the level of bona fide services the Participant
will perform after that date (whether as an employee or independent contractor of the Company or an Affiliate) will permanently
decrease to less than fifty percent (50%) of the average level of bona fide services performed over the immediately preceding thirty-six
(36) month period. A Participant shall be considered to have continued employment and to not have a
separation from service while on a leave of absence if the leave does not exceed six (6) consecutive months (twenty-nine (29) months
for a disability leave of absence) or, if longer, so long as the Participant retains a right to reemployment with the Company or
Affiliate under an applicable statute or by contract. For this purpose, a “disability leave of absence” is an absence
due to any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last
for a continuous period of not less than six (6) months, where such impairment causes the Participant to be unable to perform the
duties of Participant’s position of employment or a substantially similar position of employment. Continued services solely
as a director of the Company or an Affiliate shall not prevent a separation from service from occurring by an employee as permitted
by Code Section 409A.

 

22.07     Key
Employee Rule

 

Notwithstanding any other
provision of the Plan, any distribution of a 409A Award that would be made upon a separation from service within six (6) months
following the separation from service of a “specified employee” as defined under Code Section 409A and as determined
under procedures adopted by the Board or its delegate shall instead occur on the first day of the seventh month following the separation
from service (or upon the Participant’s death, if earlier) to the extent required by Code Section 409A. In the case of installments,
this delay shall not affect the timing of any installment otherwise payable after the requisite delay period.

 

    	 	-41-	 

     

    

 

22.08     Distributions
Upon Vesting

 

In the case of any Award
providing for a distribution upon the lapse of a substantial risk of forfeiture, if the timing of such distribution is not otherwise
specified in the Plan or the applicable Agreement, the distribution shall be made not later than two and one-half (21⁄2) months
after the calendar year in which the risk of forfeiture lapsed.

 

22.09     Scope
and Application of this Provision

 

For purposes of this Article
XXII, references to a term or event (including any authority or right of the Company or a Participant) being “permitted”
under Code Section 409A means that the term or event will not cause the Participant to be deemed to be in constructive receipt
of compensation relating to the 409A Award prior to the distribution of cash, shares of Common Stock or other property or to be
liable for payment of interest or a tax penalty under Code Section 409A.

 

ARTICLE XXIII

EFFECTIVE DATE OF
PLAN

 

The Plan is effective on
the date of its adoption by the Board, contingent on the approval of the Plan by the Company’s stockholders within twelve
(12) months after such date. Awards, other than Restricted Stock or outright grants of shares on Common Stock, may be granted under
this Plan on and after the effective date, provided that no Award shall become exercisable, vested, earned or payable unless the
Company’s stockholders approve the Plan within twelve (12) months after the Board’s adoption of the Plan. Restricted
Stock and outright grants of shares of Common Stock may only be granted after the Company’s stockholders approve the Plan.

 

ARTICLE XXIV

DURATION OF PLAN

 

No Award may be granted under
this Plan on and after ten (10) years following the effective date of the Plan. Awards granted before that date shall remain valid
in accordance with their terms.

 

    	 	-42-	 

     

    

 

POLAR POWER, INC.

2016 OMNIBUS INCENTIVE PLAN

 

Incentive Stock Option Agreement

 

No. of shares subject to

Incentive Stock Option: __________

 

THIS INCENTIVE STOCK
OPTION AGREEMENT (this “Agreement”) dated as of the ___ day of _____, _______, between Polar Power, Inc., a
Delaware corporation (the “Company”), and ____________________ (the “Participant”), is made
pursuant and subject to the provisions of the Company’s 2016 Omnibus Incentive Plan (the “Plan”), a copy
of which is attached hereto. All terms used herein that are defined in the Plan have the same meaning given them in the Plan.

 

1.             Grant
of Option. Pursuant to the Plan, the Company, on __________, _____ (the “Date of Grant”), granted to the
Participant, subject to the terms and conditions of the Plan and subject further to the terms and conditions set forth herein,
the right and option to purchase from the Company all or any part of an aggregate of ________ shares of the Common Stock of the
Company, at the price of $______ per share (which is not less than the Fair Market Value of a share of Common Stock on the Date
of Grant). In the case of a Ten Percent Shareholder, the price per share shall not be less than 110 percent of the Fair Market
Value of a share of Common Stock of the Company on the Date of Grant. This Option is intended to be treated as an “Incentive
Stock Option” under Code Section 422, but only to the extent the aggregate Fair Market Value (determined as of the Date of
Grant) of the shares for which the Option (and all other options of the Participant that are intended to be Incentive Stock Options
whether granted under the Plan or any other plan of the Company or any of its Affiliates) becomes exercisable for the first time
in any calendar year does not exceed One Hundred Thousand Dollars ($100,000). The Company makes no representation (other than the
above expression of intent) or warranty whatsoever to the Participant as to the tax consequences of the grant or exercise of the
Option or the disposition of the shares acquired hereunder. In the event that the Option awarded under this Agreement does not
qualify for special tax treatment as an Incentive Stock Option, the Option may be exercisable as a Nonqualified Stock Option. The
Company shall not be liable to the Participant if the Option or any portion thereof does not qualify as an Incentive Stock Option.

 

2.             Terms
and Conditions. This Option is subject to the following terms and conditions:

 

(a)           Expiration
Date. This Option shall expire at 11:59 p.m. on ________, ______ (the “Expiration Date”) or such earlier
time as set forth in Sections 3, 4, 5 or 6 of this Agreement. In no event shall the Expiration Date be later than 10 years from
the Date of Grant.

 

(b)           Vesting
of Option.

 

(i)          In
General. Except as otherwise provided below, this Option shall become exercisable with respect to ______ percent (____%) of
the shares of Common Stock subject to the Option (rounded to the nearest whole share) on each of the _____, ____ and ______ anniversaries
of the Date of Grant and with respect to the remaining shares of Common Stock subject to the Option on the _____ anniversary of
the Date of Grant, provided the Participant has been continuously employed by the Company or an Affiliate from the Date of Grant
until such time. Once this Option has become exercisable, it shall continue to be exercisable until the earlier of the termination
of the Participant’s rights hereunder pursuant to Sections 3, 4, 5 or 6 of this Agreement or the Expiration Date. A partial
exercise of this Option shall not affect the Participant’s right to exercise this Option with respect to the remaining shares
of Common Stock, subject to the conditions of the Plan and this Agreement.

 

    	 	1	 

     

    

 

(ii)         Change
in Control. Notwithstanding the foregoing, in the event a Change in Control occurs and no provision is made for the
continuance, assumption or substitution of the Option by the Company or its successor in connection with a Change in Control, then,
the Option shall become exercisable in full, to the extent not exercisable previously, on the earlier of the Control Change Date
or the date the Option is to be terminated in connection with the Change in Control, provided the Participant has remained continuously
employed by the Company or any Affiliate from the Date of Grant until such time.

 

(iii)        Death
or Disability. Notwithstanding the foregoing, this Option also shall become exercisable in full, to the extent not then
previously exercisable, in the event the Participant’s employment with the Company and its Affiliates is terminated as a
result of the Participant’s death or Disability. The Committee, in its sole discretion, shall determine whether the
Participant has a Disability for purposes of this Agreement.

 

(iv)        Termination
without Cause. Notwithstanding the foregoing, this Option also shall
become exercisable in full, to the extent not then previously exercisable, in the event the Participant’s employment with
the Company and its Affiliates is terminated by the Company or any Affiliate involuntarily and without Cause.

 

(c)          Method
of Exercise and Payment for Shares. This Option shall be exercised by delivering written notice of exercise, along with the
Option price for the portion of the Option being exercised and all applicable tax withholdings, to the attention of the Company’s
Secretary at the Company’s address specified in Section 10 below. The exercise date shall be the date of delivery. The Participant
shall pay the Option price and all applicable tax withholdings in cash or cash equivalent acceptable to the Committee. However,
the Committee in its discretion may, but is not required to, allow the Participant to pay the Option price and tax withholdings
(i) by surrendering shares of Common Stock the Participant already owns, (ii) by a cashless exercise through a broker, (iii) by
means of a “net settlement” procedure, (iv) by such other medium of payment as the Committee shall authorize or (v)
by any combination of the allowable methods of payment set forth herein.

 

(d)          Transferability.
Except as provided herein, this Option is nontransferable and, during the Participant’s lifetime, only the Participant may
exercise this Option. Notwithstanding the foregoing, this Option may be transferred by will or the laws of descent and distribution.

 

    	 	2	 

     

    

 

3.             Exercise
in the Event of Death or Disability. This Option shall be exercisable for all or part of the number of shares of Common Stock
that the Participant is entitled to purchase pursuant to Section 2(b) as of the date the Participant ceases to be employed by the
Company and its Affiliates as a result of the Participant’s death or Disability prior to the Expiration Date and the termination
of the Participant’s rights under Sections 4 or 5 of this Agreement. In that event, this Option may be exercised by the Participant,
the Participant’s estate, or the person or persons to whom the Participant’s rights under this Option shall pass by
will or the laws of descent and distribution, for the remainder of the period preceding the Expiration Date or within twelve (12)
months after the date the Participant ceases to be employed by the Company and its Affiliates as a result of the Participant’s
death or Disability, whichever period is shorter.

 

4.             Exercise
After Retirement. This Option shall be exercisable for all or part of the number of shares of Common Stock that the Participant
is entitled to purchase pursuant to Section 2(b) as of the date the Participant ceases to be employed by the Company and its Affiliates
as a result of the Participant’s Retirement prior to the Expiration Date and the termination of the Participant’s rights
under Sections 3, 5 or 6 of this Agreement. In that event, the Participant may exercise this Option for the remainder of the period
preceding the Expiration Date or until the date that is twelve (12) months after the date the Participant ceases to be employed
by the Company and its Affiliates due to Retirement, whichever period is shorter.

 

5.             Exercise
After Termination of Employment. This Option shall be exercisable for all or part of the number of shares of Common Stock that
the Participant is entitled to purchase pursuant to Section 2(b) as of the date the Participant ceases to be employed by the Company
and its Affiliates, if the Participant ceases to be employed by the Company and its Affiliates other than as a result of the Participant’s
death, Disability or Retirement and other than as the result of the termination of employment by the Company or an Affiliate for
Cause prior to the Expiration Date and the termination of the Participant’s rights under Sections 3 or 5 of this Agreement.
In that event, the Participant may exercise this Option for the remainder of the period preceding the Expiration Date or until
the date that is ninety (90) days after the date Participant ceases to be employed by the Company and its Affiliates, whichever
period is shorter.

 

6.             Termination
of Employment for Cause. Notwithstanding any other provision of this Agreement, all rights hereunder will be immediately discontinued
and forfeited, and the Company shall not have any further obligation hereunder to the Participant, and the Option will not be exercisable
for any number of shares of Common Stock (even if the Option previously became exercisable), on and after the time the Participant
is discharged from employment with the Company and its Affiliates by the Company or an Affiliate for Cause.

 

7.             Agreement
to Terms of the Plan and Agreement. The Participant has received a copy of the Plan, has read and understands the terms of
the Plan and this Agreement, and agrees to be bound by their terms and conditions.

 

8.             Tax
Consequences. The Participant acknowledges (i) that there may be adverse tax consequences upon acquisition or disposition of
the shares of Common Stock received upon exercise of this Option and (ii) that Participant should consult a tax adviser prior to
such acquisition or disposition. The Participant is solely responsible for determining the tax consequences of the Option and for
satisfying the Participant’s tax obligations with respect to the Option (including, but not limited to, any income or excise
tax as resulting from the application of Code Section 409A), and the Company shall not be liable if this Award is subject to Code
Section 409A. If the Participant disposes of the Option shares within two years of the grant of the Option or within one year after
the Option shares are transferred to the Participant, whichever is later (“Disqualifying Disposition”), the Participant
shall notify the Company of the Disqualifying Disposition. If, due to the Disqualifying Disposition, gain attributable to the exercise
of the Option becomes includible in the Participant’s gross income for Federal income tax purposes with respect to the Option,
the Participant shall pay to the Company, or make arrangements satisfactory to the Company regarding the payment of, any Federal,
state and local taxes of any kind required by law to be withheld or paid with respect to that amount. If permitted by the Company,
tax withholding or payment obligations may be settled with Common Stock of the company, including Common Stock that is part of
the Option that gives rise to the withholding requirement. The obligations of the Company under the Plan and pursuant to this Agreement
shall be conditioned upon that payment or arrangements with the Company and the Company shall, to the extent permitted by law,
have the right to deduct any such taxes from any payment of any kind otherwise due to the Participant from the Company or any Affiliate.

 

    	 	3	 

     

    

 

9.             Fractional
Shares. Fractional shares shall not be issuable hereunder, and when any provision hereof may entitle the Participant to a fractional
share such fractional share shall be disregarded.

 

10.           Change
in Capital Structure. The terms of this Option shall be adjusted in accordance with the terms and conditions of the Plan as
the Committee determines is equitably required in the event the Company effects one or more stock dividends, stock splits, subdivisions
or consolidations of shares or other similar changes in capitalization.

 

11.           Notice.
Any notice or other communication given pursuant to this Agreement, or in any way with respect to this Option, shall be in writing
and shall be personally delivered or mailed by United States registered or certified mail, postage prepaid, return receipt requested,
to the following addresses:

 

	If to the Company:	Polar Power, Inc.	 
	 	249 E. Gardena Boulevard	 
	 	Gardena, CA 90248	 
	 	Attention: Secretary	 
	 	 	 
	If to the Participant:	 	 
	 	 	 
	 	 	 

 

12.           Shareholder
Rights. The Participant shall not have any rights as a shareholder with respect to shares of Common Stock subject to this Option
until the issuance of the shares of the Common Stock upon exercise of the Option.

 

13.           No
Right to Continued Employment. Neither the Plan, the granting of this Option nor any other action taken pursuant to the Plan
or this Option constitutes or is evidence of any agreement or understanding, expressed or implied, that the Company or any Affiliate
shall retain the Participant as an employee for any period of time or at any particular rate of compensation.

 

    	 	4	 

     

    

 

14.           Binding
Effect. Subject to the limitations stated above and in the Plan, this Agreement shall be binding upon and inure to the benefit
of the legatees, distributees, and personal representatives of the Participant and the successors of the Company.

 

15.           Conflicts.
In the event of any conflict between the provisions of the Plan and the provisions of this Agreement, the provisions of the Plan
shall govern. All references herein to the Plan shall mean the Plan as in effect on the date hereof.

 

16.           Counterparts.
This Agreement may be executed in a number of counterparts, each of which shall be deemed an original, but all of which together
shall constitute one in the same instrument.

 

17.           Miscellaneous.
The parties agree to execute such further instruments and take such further actions as may be necessary to carry out the intent
of the Plan and this Agreement. This Agreement and the Plan shall constitute the entire agreement of the parties with respect to
the subject matter hereof.

 

18.           Section
409A. Notwithstanding any of the provisions of this Agreement, it is intended that the Option be exempt from Section
409A of the Code. Notwithstanding the preceding, neither the Company nor any Affiliate shall be liable to the Participant or any
other person if the Internal Revenue Service or any court or other authority have any jurisdiction over such matter determines
for any reason that the Option is subject to taxes, penalties or interest as a result of failing to be exempt from, or comply with,
Section 409A of the Code.

 

19.           Governing
Law. This Agreement shall be governed by the laws of the State of Delaware, except to the extent federal law applies.

 

IN WITNESS WHEREOF,
the Company has caused this Agreement to be signed by a duly authorized officer, and the Participant has affixed his signature
hereto.

 

	 	COMPANY:
	 	 
	 	POLAR POWER, INC.
	 	 
	 	By:	 
	 	Name: 	                               
	 	Title:	 
	 	 
	 	PARTICIPANT:
	 	 
	 	 
	 	[Participant’s Name]

 

    	 	5	 

     

    

 

POLAR POWER, INC.

2016 OMNIBUS INCENTIVE PLAN

 

Nonqualified Stock Option Agreement

 

No. of shares subject to

Nonqualified Stock Option: __________

 

THIS NONQUALIFIED STOCK
OPTION AGREEMENT (this “Agreement”) dated as of the ___ day of _____, _______, between Polar Power, Inc., a
Delaware corporation (the “Company”), and ____________________ (the “Participant”), is made
pursuant and subject to the provisions of the Company’s 2016 Omnibus Incentive Plan (the “Plan”), a copy
of which is attached hereto. All terms used herein that are defined in the Plan have the same meaning given them in the Plan.

 

1.             Grant
of Option. Pursuant to the Plan, the Company, on __________, _____ (the “Date of Grant”), granted to the
Participant, subject to the terms and conditions of the Plan and subject further to the terms and conditions set forth herein,
the right and option to purchase from the Company all or any part of an aggregate of ________ shares of the Common Stock of the
Company, at the price of $______ per share (which is not less than the Fair Market Value of a share of Common Stock on the Date
of Grant). This Option is intended to be treated as a nonqualified stock option, which is not subject to Code Section 422. This
Option is exercisable as hereinafter provided.

 

2.             Terms
and Conditions. This Option is subject to the following terms and conditions:

 

(a)           Expiration
Date. This Option shall expire at 11:59 p.m. on ________, ______ (the “Expiration Date”) or such earlier
time as set forth in Sections 3, 4, 5 or 6 of this Agreement. In no event shall the Expiration Date be later than 10 years from
the Date of Grant.

 

(b)           Vesting
of Option.

 

(i)          In
General. Except as otherwise provided below, this Option shall become exercisable with respect to ______ percent (____%) of
the shares of Common Stock subject to the Option (rounded to the nearest whole share) on each of the _____, ____ and ______ anniversaries
of the Date of Grant and with respect to the remaining shares of Common Stock subject to the Option on the _____ anniversary of
the Date of Grant, provided the Participant has been continuously employed by, or providing services to, the Company or an Affiliate
from the Date of Grant until such time. Once this Option has become exercisable, it shall continue to be exercisable until the
earlier of the termination of the Participant’s rights hereunder pursuant to Sections 3, 4, 5 or 6 of this Agreement or the
Expiration Date. A partial exercise of this Option shall not affect the Participant’s right to exercise this Option with
respect to the remaining shares of Common Stock, subject to the conditions of the Plan and this Agreement.

 

     

     

    

 

(ii)         Change
in Control. Notwithstanding the foregoing, in the event a Change in Control occurs and no provision is made for the
continuance, assumption or substitution of the Option by the Company or its successor in connection with a Change in Control, then,
the Option shall become exercisable in full, to the extent not exercisable previously, on the earlier of the Control Change Date
or the date the Option is to be terminated in connection with the Change in Control, provided the Participant has remained continuously
employed by, or providing service to, the Company or any Affiliate from the Date of Grant until such time.

 

(iii)        Death
or Disability. Notwithstanding the foregoing, this Option also shall become exercisable in full, to the extent not then
previously exercisable, in the event the Participant’s employment or service with the Company and its Affiliates is terminated
as a result of the Participant’s death or Disability. The Committee, in its sole discretion, shall determine whether
the Participant has a Disability for purposes of this Agreement.

 

(iv)        Termination
without Cause. Notwithstanding the foregoing, this Option also shall
become exercisable in full, to the extent not then previously exercisable, in the event the Participant’s employment or service
with the Company and its Affiliates is terminated by the Company or any Affiliate involuntarily and without Cause.

 

(c)           Method
of Exercise and Payment for Shares. This Option shall be exercised by delivering written notice of exercise, along with the
Option price for the portion of the Option being exercised and all applicable tax withholdings, to the attention of the Company’s
Secretary at the Company’s address specified in Section 10 below. The exercise date shall be the date of delivery. The Participant
shall pay the Option price and all applicable tax withholdings in cash or cash equivalent acceptable to the Committee. However,
the Committee in its discretion may, but is not required to, allow the Participant to pay the Option price and tax withholdings
(i) by surrendering shares of Common Stock the Participant already owns, (ii) by a cashless exercise through a broker, (iii) by
means of a “net settlement” procedure, (iv) by such other medium of payment as the Committee shall authorize or (v)
by any combination of the allowable methods of payment set forth herein.

 

(d)           Transferability.
Except as provided herein, this Option is nontransferable and, during the Participant’s lifetime, only the Participant may
exercise this Option. Notwithstanding the foregoing, this Option may be transferred by will or the laws of descent and distribution,
and during the Participant’s lifetime, may be transferred by the Participant to immediate family members or trusts or other
entities on behalf of the Participant and/or immediate family members or for charitable donations. Any such transfer will be permitted
only if (i) the Participant does not receive any consideration for the transfer and (ii) the Committee expressly approves the transfer.
Any transferee to whom this Option is transferred shall be bound by the same terms and conditions that governed this Option during
the time it was held by the Participant (which terms and conditions shall still be read from the perspective of the Participant);
provided, however, that the transferee may not transfer this Option except by will or the laws of descent and distribution. Any
such transfer shall be evidenced by an appropriate written document that the Participant executes and the Participant shall deliver
a copy thereof to the Committee on or prior to the effective date of the transfer. No right or interest of the Participant or any
transferee in this Option shall be liable for, or subject to, any lien, obligation or liability of the Participant or any transferee.

 

    	 	2	 

     

    

 

3.             Exercise
in the Event of Death or Disability. This Option shall be exercisable for all or part of the number of shares of Common Stock
that the Participant is entitled to purchase pursuant to Section 2(b) as of the date the Participant ceases to be employed by or
provide services to the Company and its Affiliates as a result of the Participant’s death or Disability prior to the Expiration
Date and the termination of the Participant’s rights under Sections 4, 5 or 6 of this Agreement. In that event, this Option
may be exercised by the Participant, the Participant’s estate, or the person or persons to whom the Participant’s rights
under this Option shall pass by will or the laws of descent and distribution, for the remainder of the period preceding the Expiration
Date or within twelve (12) months after the date the Participant ceases to be employed by or provide services to the Company and
its Affiliates as a result of the Participant’s death or Disability, whichever period is shorter.

 

4.             Exercise
After Retirement. This Option shall be exercisable for all or part of the number of shares of Common Stock that the Participant
is entitled to purchase pursuant to Section 2(b) as of the date the Participant ceases to be employed by, or provide services to,
the Company and its Affiliates as a result of the Participant’s Retirement prior to the Expiration Date and the termination
of the Participant’s rights under Sections 3, 5 or 6 of this Agreement. In that event, the Participant may exercise this
Option for the remainder of the period preceding the Expiration Date or until the date that is twelve (12) months after the date
the Participant ceases to be employed by, or provide services to, the Company and its Affiliates due to Retirement, whichever period
is shorter.

 

5.             Exercise
After Termination of Employment or Service. This Option shall be exercisable for all or part of the number of shares of Common
Stock that the Participant is entitled to purchase pursuant to Section 2(b) as of the date the Participant ceases to be employed
by, or provide services to, the Company and its Affiliates, if the Participant ceases to be employed by, or provide services to,
the Company and its Affiliates other than as a result of the Participant’s death, Disability or Retirement and other than
as the result of termination of service or employment by the Company or any Affiliate for Cause prior to the Expiration Date and
the termination of the Participant’s rights under Sections 3, 4 or 6 of this Agreement. In that event, the Participant
may exercise this Option for the remainder of the period preceding the Expiration Date or until the date that is ninety (90) days
after the date Participant ceases to be employed by, or provide services to, the Company and its Affiliates, whichever period is
shorter.

 

6.             Termination
of Employment or Service for Cause. Notwithstanding any other provision of this Agreement, all rights hereunder will be immediately
discontinued and forfeited, and the Company shall not have any further obligation hereunder to the Participant, and the Option
will not be exercisable for any number of shares of Common Stock (even if the Option previously became exercisable), on and after
the time the Participant is discharged from employment or service with the Company and its Affiliates by the Company or an Affiliate
for Cause.

 

    	 	3	 

     

    

 

7.             Agreement
to Terms of the Plan and Agreement. The Participant has received a copy of the Plan, has read and understands the terms of
the Plan and this Agreement, and agrees to be bound by their terms and conditions.

 

8.             Tax
Consequences. The Participant acknowledges (i) that there may be adverse tax consequences upon acquisition or disposition of
the shares of Common Stock received upon exercise of this Option and (ii) that Participant should consult a tax adviser prior to
such acquisition or disposition. The Participant is solely responsible for determining the tax consequences of the Option and for
satisfying the Participant’s tax obligations with respect to the Option (including, but not limited to, any income or excise
tax as resulting from the application of Code Section 409A), and the Company shall not be liable if this Award is subject to Code
Section 409A.

 

9.             Fractional
Shares. Fractional shares shall not be issuable hereunder, and when any provision hereof may entitle the Participant to a fractional
share such fractional share shall be disregarded.

 

10.           Change
in Capital Structure. The terms of this Option shall be adjusted in accordance with the terms and conditions of the Plan as
the Committee determines is equitably required in the event the Company effects one or more stock dividends, stock splits, subdivisions
or consolidations of shares or other similar changes in capitalization.

 

11.           Notice.
Any notice or other communication given pursuant to this Agreement, or in any way with respect to this Option, shall be in writing
and shall be personally delivered or mailed by United States registered or certified mail, postage prepaid, return receipt requested,
to the following addresses:

 

	If to the Company:	Polar Power, Inc.	 
	 	249 E. Gardena Boulevard	 
	 	Gardena, CA 90248	 
	 	Attention: Secretary	 
	 	 	 
	If to the Participant:	 	 
	 	 	 
	 	 	 

 

12.           Shareholder
Rights. The Participant shall not have any rights as a shareholder with respect to shares of Common Stock subject to this Option
until the issuance of the shares of the Common Stock upon exercise of the Option.

 

13.           No
Right to Continued Employment or Service. Neither the Plan, the granting of this Option nor any other action taken pursuant
to the Plan or this Option constitutes or is evidence of any agreement or understanding, expressed or implied, that the Company
or any Affiliate shall retain the Participant as an employee or other service provider for any period of time or at any particular
rate of compensation.

 

    	 	4	 

     

    

 

14.           Binding
Effect. Subject to the limitations stated above and in the Plan, this Agreement shall be binding upon and inure to the benefit
of the legatees, distributees, and personal representatives of the Participant and the successors of the Company.

 

15.           Conflicts.
In the event of any conflict between the provisions of the Plan and the provisions of this Agreement, the provisions of the Plan
shall govern. All references herein to the Plan shall mean the Plan as in effect on the date hereof.

 

16.           Counterparts.
This Agreement may be executed in a number of counterparts, each of which shall be deemed an original, but all of which together
shall constitute one in the same instrument.

 

17.           Miscellaneous.
The parties agree to execute such further instruments and take such further actions as may be necessary to carry out the intent
of the Plan and this Agreement. This Agreement and the Plan shall constitute the entire agreement of the parties with respect to
the subject matter hereof.

 

18.           Section
409A. Notwithstanding any of the provisions of this Agreement, it is intended that the Option be exempt from Section
409A of the Code. Notwithstanding the preceding, neither the Company nor any Affiliate shall be liable to the Participant or any
other person if the Internal Revenue Service or any court or other authority have any jurisdiction over such matter determines
for any reason that the Option is subject to taxes, penalties or interest as a result of failing to be exempt from, or comply with,
Section 409A of the Code.

 

19.           Governing
Law. This Agreement shall be governed by the laws of the State of Delaware, except to the extent federal law applies.

 

IN WITNESS WHEREOF,
the Company has caused this Agreement to be signed by a duly authorized officer, and the Participant has affixed his signature
hereto.

 

	 	COMPANY:
	 	 
	 	POLAR POWER, INC.
	 	 
	 	By:	 
	 	Name: 	                         
	 	Title:	 
	 	 
	 	PARTICIPANT:
	 	 
	 	 
	 	[Participant’s Name]

 

    	 	5	 

     

    

 

POLAR POWER, INC. 

2016 OMNIBUS INCENTIVE PLAN

 

Restricted Stock Agreement

 

No. of shares subject to

Restricted Stock Agreement: __________

 

THIS RESTRICTED STOCK
AGREEMENT (this “Agreement”) dated as of the ___ day of _____, _______, between Polar Power, Inc., a Delaware
corporation (the “Company”), and ____________________ (the “Participant”), is made pursuant
and subject to the provisions of the Company’s 2016 Omnibus Incentive Plan (the “Plan”), a copy of which
is attached hereto. All terms used herein that are defined in the Plan have the same meaning given them in the Plan.

 

1.             Grant
of Shares. Pursuant to the Plan, the Company, on __________, _____ (the “Date of Grant”), granted to the
Participant, subject to the terms and conditions of the Plan and subject further to the terms and conditions set forth herein,
________ shares of the Common Stock of the Company (the “Shares”). The Shares shall be nontransferable and forfeitable
until the time they vest and become nonforfeitable as described herein. The Shares will vest and become nonforfeitable as hereinafter
provided.

 

2.             Terms
and Conditions. The Shares are subject to the following terms and conditions:

 

(a)           Vesting
of Shares.

 

(i)          In
General. Except as otherwise provided below, _____ percent (__%) of the Shares (rounded down to the nearest whole number of
Shares) will become vested and nonforfeitable on each of the ____, _____ and ______ anniversaries of the Date of Grant and the
remaining Shares will become vested and nonforfeitable on the ______ anniversary of the Date of Grant, provided the Participant
has been continuously employed by, or providing services to, the Company or an Affiliate from the Date of Grant until such time.

 

(ii)         Change
in Control. Notwithstanding the foregoing, in the event a Change in Control occurs and no provision is made for the
continuance, assumption or substitution of the Shares by the Company or its successor in connection with a Change in Control, then,
the Shares shall fully vest and become nonforfeitable as of the Change in Control provided the Participant has been continuously
employed by, or providing services to, the Company or any Affiliate from the Date of Grant until such time.

 

(iii)        Death
or Disability. Notwithstanding the foregoing, the Shares shall fully vest and become nonforfeitable,
to the extent not then previously vested, in the event the Participant’s employment or service with the Company and its Affiliates
is terminated as a result of the Participant’s death or Disability. The Committee, in its sole discretion, shall determine
whether the Participant has a Disability for purposes of this Agreement.

 

     

     

    

 

(iv)         Termination
without Cause. Notwithstanding the foregoing, the Shares also shall
fully vest and become nonforfeitable, to the extent not then previously
vested, in the event the Participant’s employment or service with the Company and its Affiliates is terminated by the Company
and its Affiliates involuntarily and without Cause.

 

(b)           Transferability.
Except as provided herein, the Shares are nontransferable while such Shares remain forfeitable, other than by will or the laws
of descent and distribution, and during the Participant’s lifetime, may be transferred by the Participant to immediate family
members or trusts or other entities on behalf of the Participant and/or immediate family members or for charitable donations. Any
such transfer will be permitted only if (i) the Participant does not receive any consideration for the transfer and (ii) the Committee
expressly approves the transfer. Any transferee to whom the Shares are transferred shall be bound by the same terms and conditions
that governed the Shares during the time it was held by the Participant (which terms and conditions shall still be read from the
perspective of the Participant); provided, however, that the transferee may not transfer the Shares except by will or the laws
of descent and distribution. Any such transfer shall be evidenced by an appropriate written document that the Participant executes
and the Participant shall deliver a copy thereof to the Committee on or prior to the effective date of the transfer. No right or
interest of the Participant or any transferee in the Shares shall be liable for, or subject to, any lien, obligation or liability
of the Participant or any transferee.

 

3.             Forfeiture
of the Shares.

 

(a)          The
Shares will become vested and nonforfeitable, if at all, no later than __________. The Shares that are not vested and nonforfeitable
by such time will be forfeited automatically at the close of business on that date or, if earlier, at the time the Shares may no
longer become vested and nonforfeitable under any circumstances.

 

(b)          Shares
that are not vested and nonforfeitable pursuant to Section 2(a) as of the date of termination of the Participant’s employment
by, or service with, the Company and its Affiliates will be forfeited automatically at the close of business on that date (or,
if earlier, in connection with the termination of the Participant’s employment by, or service with, the Company and its Affiliates
for Cause).

 

(c)          In
no event may the Shares become vested and nonforfeitable, in whole or in part, after forfeiture pursuant to Sections 3(a) or (b)
above.

 

4.             Agreement
to Terms of the Plan and Agreement. The Participant has received a copy of the Plan, has read and understands the terms of
the Plan and this Agreement, and agrees to be bound by their terms and conditions.

 

5.             Withholding
of Taxes. The Company’s obligation to deliver the Shares upon vesting is subject to the Participant’s satisfaction
of any applicable federal, state and local income and employment tax and withholding requirements in a manner and form satisfactory
to the Company. The Company, to the extent applicable law permits, may allow the Participant to pay such withholding amounts (i)
by surrendering (actually or by attestation) shares of Common Stock that the Participant already owns (but only for the minimum
required withholding), (ii) by a cashless exercise through a broker, (iii) by means of a “net exercise” procedure or
(iv) by such other medium of payment as the Company in its discretion shall authorize.

 

    	 	2	 

     

    

 

6.             Tax
Consequences. The Participant acknowledges (i) that there may be adverse tax consequences upon acquisition or disposition of
the Shares and (ii) that Participant should consult a tax adviser prior to such acquisition or disposition. The Participant is
solely responsible for determining the tax consequences of the Shares and for satisfying the Participant’s tax obligations
with respect to the Shares (including, but not limited to, any income or excise tax as resulting from the application of Code Section
409A), and the Company shall not be liable if this Award is subject to Code Section 409A.

 

7.             Fractional
Shares. Fractional shares shall not be issuable hereunder, and when any provision hereof may entitle the Participant to a fractional
share such fractional share shall be disregarded.

 

8.             Change
in Capital Structure. The terms of this Agreement shall be adjusted in accordance with the terms and conditions of the Plan
as the Committee determines is equitably required in the event the Company effects one or more stock dividends, stock splits, subdivisions
or consolidations of shares or other similar changes in capitalization.

 

9.             Notice.
Any notice or other communication given pursuant to this Agreement, or in any way with respect to this Agreement, shall be in writing
and shall be personally delivered or mailed by United States registered or certified mail, postage prepaid, return receipt requested,
to the following addresses:

 

	If to the Company:	Polar Power, Inc.	 
	 	249 E. Gardena Boulevard	 
	 	Gardena, CA 90248	 
	 	Attention:  Secretary	 
	 	 	 
	If to the Participant:	 	 
	 	 	 
	 	 	 

 

10.           Shareholder
Rights. While the Shares may be forfeited and are nontransferable, a Participant will have all rights of a stockholder with
respect to the Shares, including the right to receive dividends and vote the shares; provided, however, that during such period
(a) a Participant may not sell, transfer, pledge, exchange, hypothecate or otherwise dispose of the Shares, (b) the Company shall
retain custody of any certificates evidencing the Shares and (c) the Participant will deliver to the Company a stock power, endorsed
in blank, with respect to this Agreement. In lieu of retaining custody of the certificates evidencing Shares granted pursuant to
this Agreement, the shares of Common Stock granted pursuant to this Agreement may, in the Company’s discretion, be held in
escrow by the Company or recorded as outstanding by notation on the stock records of the Company until the Participant’s
interest in such Shares vest. Notwithstanding the preceding sentences, dividends payable with respect to the Shares shall accumulate
(without interest) and become payable in cash or in shares of Common Stock to the Participant at the time, and only to the extent
that, the portion of the Shares to which the dividends relate has become transferable and nonforfeitable. The limitations set forth
in the preceding sentences shall not apply after the Shares are transferable and are no longer forfeitable.

 

    	 	3	 

     

    

 

11.           No
Right to Continued Employment or Service. Neither the Plan, the granting of the Shares nor any other action taken pursuant
to the Plan or this Agreement constitutes or is evidence of any agreement or understanding, expressed or implied, that the Company
or any Affiliate shall retain the Participant as an employee or other service provider for any period of time or at any particular
rate of compensation.

 

12.           Binding
Effect. Subject to the limitations stated above and in the Plan, this Agreement shall be binding upon and inure to the benefit
of the legatees, distributees, and personal representatives of the Participant and the successors of the Company.

 

13.           Conflicts.
In the event of any conflict between the provisions of the Plan and the provisions of this Agreement, the provisions of the Plan
shall govern. All references herein to the Plan shall mean the Plan as in effect on the date hereof.

 

14.           Counterparts.
This Agreement may be executed in a number of counterparts, each of which shall be deemed an original, but all of which together
shall constitute one in the same instrument.

 

15.           Miscellaneous.
The parties agree to execute such further instruments and take such further actions as may be necessary to carry out the intent
of the Plan and this Agreement. This Agreement and the Plan shall constitute the entire agreement of the parties with respect to
the subject matter hereof.

 

16.           Section
409A. Notwithstanding any of the provisions of this Agreement, it is intended that this Agreement be exempt from Section
409A of the Code. Notwithstanding the preceding, neither the Company nor any Affiliate shall be liable to the Participant or any
other person if the Internal Revenue Service or any court or other authority have any jurisdiction over such matter determines
for any reason that this Agreement is subject to taxes, penalties or interest as a result of failing to be exempt from, or comply
with, Section 409A of the Code.

 

17.           Governing
Law. This Agreement shall be governed by the laws of the State of Delaware, except to the extent federal law applies.

 

    	 	4	 

     

    

 

IN WITNESS WHEREOF,
the Company has caused this Agreement to be signed by a duly authorized officer, and the Participant has affixed his signature
hereto.

 

	 	COMPANY:
	 	 
	 	POLAR POWER, INC.
	 	 
	 	By:	 
	 	Name: 	                      
	 	Title:	 
	 	 
	 	PARTICIPANT:
	 	 
	 	 
	 	[Participant’s Name]

 

    	 	5

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