Document:

Exhibit 10.17

 

SAEXPLORATION HOLDINGS, INC.

 

2013 Long-Term Incentive Plan

 

(As Adopted Effective June 24, 2013)

 

 

ARTICLE 1. INTRODUCTION.

 

The Plan was adopted by the Board on December
9, 2012, subject to approval by the Company’s stockholders at the Company’s special meeting of stockholders held on
June 21, 2013, to be effective upon consummation of the merger considered at such meeting. The purpose of the Plan is to promote
the long-term success of the Company and the creation of stockholder value by (a) encouraging Employees to focus on long-range
objectives, (b) encouraging the attraction and retention of Employees with exceptional qualifications, and (c) linking Employees
directly to stockholder interests through increased stock ownership. The Plan seeks to achieve these purposes by providing for
Awards in the form of Restricted Shares, Stock Units, Options (which may be ISOs or NSOs), Performance Cash Awards, and SARs.

 

The Plan shall be governed by, and construed
in accordance with, the laws of the State of Delaware (except its choice-of-law provisions).

 

ARTICLE 2. ADMINISTRATION.

 

2.1             
Committee Composition. The Committee shall administer the Plan. Except as otherwise determined by the Board, the
Committee shall consist solely of two or more Non-Employee Directors who are also Outside Directors. The Board shall have discretion
to determine whether or not it intends to comply with the exemption requirements of Rule 16b-3 of the Exchange Act and/or Section
162(m) of the Code. However, if the Board intends to satisfy such exemption requirements, the Committee shall be a committee of
the Board that at all times consists solely of two or more Non-Employee Directors who are also Outside Directors. Within the scope
of such authority, the Board or the Committee may (a) delegate to a committee of one or more members of the Board who are not Outside
Directors the authority to grant Awards to eligible persons who are either (i) not then Covered Employees and are not expected
to be Covered Employees at the time of recognition of income resulting from such Award or (ii) not persons with respect to whom
the Company wishes to comply with Section 162(m) of the Code or (b) delegate to a committee of one or more members of the Board
who are not Non-Employee Directors the authority to grant Awards to eligible persons who are not then subject to Section 16 of
the Exchange Act. Nothing herein shall create an inference that an Award is not validly granted under the Plan in the event Awards
are granted under the Plan by a compensation committee of the Board that does not at all times consist solely of two or more Non-Employee
Directors who are also Outside Directors.

 

2.2             
Committee Responsibilities. The Committee shall: (a) select the Employees who are to receive Awards under the Plan;
(b) determine the type, number, vesting requirements, and other features and conditions of such Awards; (c) interpret the Plan;
(d) make all other decisions relating to the operation of the Plan; and (e) carry out any other duties delegated to it by the Board
under the Plan. The Committee may adopt such rules or guidelines as it deems appropriate to implement the Plan. The Committee’s
determinations under the Plan shall be final and binding on all persons.

 

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2.3             
Non-Executive Officer Grants. The Board may appoint a single Director, an additional committee of Directors and/or
the Company’s Chief Executive Officer to determine Awards for Employees who are not Executive Officers of the Company. The
single Director, the members of the additional committee, and/or the Company’s Chief Executive Officer need not satisfy the
requirements of Section 2.1. Such Director, committee, or the Company’s Chief Executive Officer may grant Awards under the
Plan to such Employees. However, the Committee shall nevertheless prescribe the terms, features, and conditions of such Awards
and the aggregate number of Company shares subject to such Awards. Within the limitations of this Section 2.3, any reference in
the Plan to the Committee shall include any such single Director, additional committee, and/or the Company’s Chief Executive
Officer to whom the Board has delegated the required authority under this Section 2.3.

 

2.4             
Compliance with Section 409A. Awards shall be designed, granted and administered in such a manner that they are either
exempt from the application of, or comply with, the requirements of Section 409A of the Code (“Section 409A”). If the
Committee determines that an Award, payment, distribution, deferral election, transaction, or any other action or arrangement contemplated
by the provisions of the Plan would, if undertaken or implemented, cause a holder to become subject to additional taxes under Section
409A, then unless the Committee specifically provides otherwise, such Award, payment, distribution, deferral election, transaction
or other action or arrangement shall not be given effect to the extent it causes such result and the related provisions of the
Plan and/or Award agreement will be deemed modified or, if necessary, suspended in order to comply with the requirements of Section
409A to the extent determined appropriate by the Committee, in each case without the consent of or notice to the holder. The exercisability
of an Option shall not be extended to the extent that such extension would subject the holder to additional taxes under Section
409A.

 

2.5             
Foreign Awardees. Without amending this Plan, the Committee may grant Awards to eligible persons who are foreign
nationals on such terms and conditions different from those specified in this Plan as may, in the judgment of the Committee, be
necessary or desirable to foster and promote achievement of the purposes of this Plan and, in furtherance of such purposes, the
Committee may make such modifications, amendments, procedures, subplans and the like as may be necessary or advisable to comply
with the provisions of laws and regulations in other countries or jurisdictions in which the Company or its Subsidiaries operate.

 

ARTICLE 3. SHARES AVAILABLE FOR GRANTS.

 

3.1             
Basic Limitation; Sublimit for Aggregate Number of Restricted Shares. Common Shares issued pursuant to the
Plan may be authorized but unissued shares or treasury shares. The aggregate number of Common Shares issued under the Plan shall
not exceed 792,513 Common Shares, subject to Section 3.2. The number of Common Shares that are subject to Awards outstanding at
any time under the Plan shall not exceed the number of Common Shares that then remain available for issuance under the Plan. All
Common Shares available under the Plan may be issued with respect to Options and SARs, including upon the exercise of ISOs. The
aggregate number of Common Shares and Restricted Shares issued to all Participants pursuant to all Awards of Restricted Shares
and Stock Units made under the Plan over its life shall not exceed 396,256 Common Shares, subject to Section 3.2. The limitations
of this Section 3.1 shall be subject to adjustment pursuant to Article 10.

 

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3.2             
Shares Returned to Reserve. If Options, SARs, Restricted Shares, or Stock Units are forfeited or terminate for any
other reason before being exercised or settled, then the Common Shares subject to such Options, SARs, Restricted Shares, or Stock
Units shall again become available for issuance under the Plan and shall not be considered for purposes of determining any limitations
on the issuance of Options, SARs, Restricted Shares, or Stock Units. If Restricted Shares or Common Shares issued upon the exercise
of Options are reacquired by the Company pursuant to a forfeiture provision, then such Common Shares shall again become available
for issuance under the Plan. Performance Cash Awards shall not affect the aggregate number of Common Shares remaining available
for issuance under the Plan.

 

3.3             
Uncertificated Shares. To the extent that the Plan provides for issuance of stock certificates to reflect the issuance
of Common Shares, the issuance may be effected on an un-certificated basis, to the extent not prohibited by applicable law or the
applicable rules of any stock exchange on which the Company’s equity securities are traded.

 

3.4             
Limited Transferability. Awards shall generally be nontransferable except in the case of the Participant’s
death, and the Stock Option Agreement, SAR Agreement, Restricted Stock Agreement, Stock Unit Agreement or Performance Cash Award
Agreement entered into with respect to any Award shall generally provide for such nontransferability. The Committee may, however,
in its discretion, authorize all or a portion of any Award (other than of ISOs) to be granted on terms that permit transfer by
the Participant to (i) the spouse, parents, children, stepchildren, adoptive relationships, sisters, brothers, or grandchildren
of the Participant, (ii) a trust or trusts for the exclusive benefit of the spouse, parents, children, stepchildren, adoptive relationships,
sisters, brothers, or grandchildren of the Participant, or (iii) a partnership or limited liability company in which the spouse,
parents, children, stepchildren, adoptive relationships, sisters, brothers, or grandchildren of the Participant are the only partners
or members, as applicable; provided in each case that (x) there may be no consideration for any such transfer (other than in the
case of Clause (iii), units in the partnership or membership interests in the limited liability company), and (y) the agreement
pursuant to which such Awards are granted must be approved by the Committee, and must expressly provide for transferability in
a manner consistent with this Section 3.4. Following any such transfer, any such Awards shall continue to be subject to the same
terms and conditions as were applicable immediately prior to the transfer. The provisions of the Award with respect to expiration,
termination or vesting shall continue to apply with respect to the original Participant, and the Award shall be exercisable by
the transferee only to the extent and for the periods specified herein with respect to the Participant. The original Participant
will remain subject to withholding taxes upon exercise of any such Awards by the transferee. The Company shall have no obligation
whatsoever to provide notice to any transferee of any matter, including early expiration or termination of an Award.

 

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ARTICLE 4. ELIGIBILITY.

 

4.1             
Incentive Stock Options. Only Employees of the Company, a Parent, or a Subsidiary shall be eligible for the grant
of ISOs. In addition, an Employee who owns more than 10% of the total combined voting power of all classes of outstanding stock
of the Company or of any of its Parents or Subsidiaries shall not be eligible for the grant of an ISO unless the additional requirements
set forth in Section 422(c)(5) of the Code are satisfied.

 

4.2             
Other Grants. Employees shall be eligible for the grant of Restricted Shares, Stock Units, NSOs, SARs or Cash Performance
Awards under this Plan. No Employee of an Affiliate will be eligible for the grant of an NSO or SAR if the Company is not an eligible
issuer of service recipient stock with respect to such Employee under Treas. reg. § 1.409A-1(b)(5)(iii)(E). No person
shall be eligible for an Award unless Common Shares that might be transferred in connection with the Award can be registered using
Form S-8 under the Securities Act of 1933, as amended.

 

ARTICLE 5. OPTIONS.

 

5.1             
Stock Option Agreement. Each grant of an Option under the Plan shall be evidenced by a Stock Option Agreement between
the Optionee and the Company. Such Option shall be subject to all applicable terms of the Plan and may be subject to any other
terms that are not inconsistent with the Plan. The Stock Option Agreement shall specify whether the Option is an ISO or an NSO.
The provisions of the various Stock Option Agreements entered into under the Plan need not be identical.

 

5.2             
Number of Shares. Each Stock Option Agreement shall specify the number of Common Shares subject to the Option and
shall provide for the adjustment of such number in accordance with Article 10. The total number of Options granted to any single
Optionee in any single calendar year shall not cover more than 150,000 Common Shares. The limitations set forth in the preceding
sentence shall be subject to adjustment in accordance with Article 10.

 

5.3             
Exercise Price. Each Stock Option Agreement shall specify the Exercise Price, which shall not be less than 100% of
the Fair Market Value of a Common Share on the date of grant. The preceding sentence shall not apply to Options granted pursuant
to an assumption of, or substitution for, another option in a manner that would satisfy the requirements of Section 424(a)
of the Code, whether or not such section is applicable.

 

5.4             
Exercisability and Term. Each Stock Option Agreement shall specify the date or event when all or any installment
of the Option is to become exercisable. The Stock Option Agreement shall also specify the term of the Option; provided that the
term of an ISO shall in no event exceed 10 years from the date of grant. A Stock Option Agreement may provide for accelerated exercisability
in the event of the Optionee’s death, disability, or retirement, or other events and may provide for expiration prior to
the end of its term in the event of the termination of the Optionee’s Service.

 

5.5             
Effect of Change in Control. The Committee may determine, at the time of granting an Option or thereafter, that such
Option shall become exercisable as to all or part of the Common Shares subject to such Option in the event that a Change in Control
occurs with respect to the Company or in the event that the Optionee’s employment is terminated after a Change in Control.
However, in the case of an ISO, the acceleration of exercisability shall not occur without the Optionee’s written consent.
In addition, acceleration of exercisability may be required under Section 10.3.

 

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5.6             
Buyout Provisions. The Committee may at any time (a) offer to buy out for a payment in cash or cash equivalents an
Option previously granted or (b) authorize an Optionee to elect to cash out an Option previously granted, in either case at such
time and based upon such terms and conditions as the Committee shall establish; provided that cash payments shall not exceed the
Fair Market Value less the Exercise Price.

 

ARTICLE 6. PAYMENT FOR OPTION SHARES.

 

6.1             
General Rule. The Exercise Price of Common Shares issued upon exercise of Options shall be payable in full entirely
in cash or cash equivalents at the time when such Common Shares are purchased, except that the Committee at its sole discretion
may accept payment of the Exercise Price in any other form(s) described in this Article 6. However, if the Optionee is an Executive
Officer or Director of the Company, he or she may pay the Exercise Price in a form other than cash or cash equivalents only to
the extent permitted by Section 13(k) of the Exchange Act.

 

6.2             
Surrender of Stock. With the Committee’s consent, provided that the Company has an effective registration statement
on Form S-8 (or its successor) covering the issuance of the Common Shares, all or any part of the Exercise Price may be paid by
surrendering, or attesting to the ownership of, Common Shares that are already owned by the Optionee. Such Common Shares shall
be valued at their Fair Market Value on the date when the new Common Shares are purchased under the Plan.

 

6.3             
Exercise/Sale. With the Committee’s consent, all or any part of the Exercise Price, and any withholding taxes,
may be paid by delivering (on a form prescribed by the Company) an irrevocable direction to a securities broker approved by the
Company to sell all or part of the Common Shares being purchased under the Plan and to deliver all or part of the sales proceeds
to the Company.

 

6.4             
Promissory Note. With the Committee’s consent, all or any part of the Exercise Price and any withholding taxes
may, except in the case of an Executive Officer of the Company, be paid by delivering (on a form prescribed by the Company) a full-recourse
promissory note.

 

6.5             
Other Forms of Payment. With the Committee’s consent, all or any part of the Exercise Price and any withholding
taxes may be paid in any other form that is consistent with applicable laws and rules and regulations.

 

ARTICLE 7. STOCK APPRECIATION RIGHTS.

 

7.1             
SAR Agreement. Each grant of a SAR under the Plan shall be evidenced by a SAR Agreement between the Optionee and
the Company. Such SAR shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent
with the Plan. The provisions of the various SAR Agreements entered into under the Plan need not be identical.

 

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7.2             
Number of Shares. Each SAR Agreement shall specify the number of Common Shares to which the SAR pertains and shall
provide for the adjustment of such number in accordance with Article 10. The total number of SARs granted to any single Participant
in any single calendar year shall not cover more than 20,000 Common Shares.

 

7.3             
Exercise Price. Each SAR Agreement shall specify the Exercise Price, which shall in no event be less than 100% of
the Fair Market Value of a Common Share on the date of grant. The preceding sentence shall not apply to SARs granted pursuant to
an assumption of, or substitution for, another SAR in a manner that would satisfy the requirements of Section 424(a) of the Code
if such section were applicable.

 

7.4             
Exercisability and Term. Each SAR Agreement shall specify the date or event when all or any installment of the SAR
is to become exercisable. The SAR Agreement shall also specify the term of the SAR. A SAR Agreement may provide for accelerated
exercisability in the event of the Optionee’s death, disability, or retirement, or other events and may provide for expiration
prior to the end of its term in the event of the termination of the Optionee’s Service. SARs may be awarded in combination
with Options, and such an Award may provide that the SARs will not be exercisable unless the related Options are forfeited. A SAR
granted in combination with an ISO: (i) must be granted at the same time as the ISO to which it relates; (ii) must be exercisable
only when the current Fair Market Value of Common Shares exceeds the ISO’s exercise price and the ISO is otherwise exercisable;
(iii) may not be transferrable except when and to the extent that the ISO is transferrable under Section 3.4 of the Plan; and (iv)
must have economic and tax consequences upon exercise that are no more favorable than those upon the exercise of the ISO in combination
with which it was granted followed by an immediate sale of the Common Shares that would be received upon such ISO’s exercise.
A SAR granted under the Plan not in combination with an ISO may provide that it will be exercisable only in the event of a Change
in Control.

 

7.5             
Effect of Change in Control. The Committee may determine, at the time of granting a SAR or thereafter, that such
SAR shall become exercisable as to all or part of the Common Shares subject to such SAR in the event that the Company is subject
to a Change in Control or in the event that the Optionee’s employment is terminated after a Change in Control. In addition,
acceleration of exercisability may be required under Section 10.3.

 

7.6             
Exercise of SARs. Upon exercise of a SAR, the Optionee (or any person having the right to exercise the SAR after
his or her death or under Section 3.4 of this Plan) shall receive from the Company: (a) Common Shares; (b) cash;
or (c) a combination of Common Shares and cash, as the Committee shall determine. The amount of cash and/or the Fair Market
Value of Common Shares received upon exercise of SARs shall, in the aggregate, be equal to the amount by which the Fair Market
Value (on the date of surrender) of the Common Shares subject to the SARs exceeds the Exercise Price.

 

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ARTICLE 8. RESTRICTED SHARES.

 

8.1             
Restricted Stock Agreement. Each grant of Restricted Shares under the Plan shall be evidenced by a Restricted Stock
Agreement between the recipient and the Company. Such Restricted Shares shall be subject to all applicable terms of the Plan and
may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Restricted Stock Agreements
entered into under the Plan need not be identical.

 

8.2             
Consideration for Awards. Restricted Shares shall be granted to Participants at no additional cost to them; provided,
however, that the value of the services performed by any Participant receiving Restricted Shares must, in the opinion of the Committee,
equal or exceed the par value of the Restricted Shares to be granted to such Participant.

 

8.3             
Performance and/or Vesting Conditions. Each Award of Restricted Shares may or may not be contingent on the satisfaction
of performance targets, or subject to vesting. Vesting shall occur, in full or in installments, upon satisfaction of the conditions
specified in the Restricted Stock Agreement. The Committee may include as vesting conditions or as conditions for making an Award
of Restricted Shares the requirement that the performance of the Company or a business unit of the Company for a specified period
equal or exceed a target determined in advance by the Committee. The Committee shall determine such performance. If the Award is
intended to satisfy the requirements of Section 162(m) of the Code, such target shall be based on one or more of the criteria set
forth in Appendix A. In no event shall the number of Restricted Shares the award and/or vesting of which is or are subject to performance-based
conditions intended to satisfy the requirements of Section 162(m) of the Code that are granted to any single Participant in a single
calendar year exceed 100,000 Common Shares. The satisfaction of any performance target and/or vesting may be waived in the case
of a Change in Control or the Participant’s death or disability. The Company may retain the certificates representing shares
of Restricted Stock in the Company’s possession until such time as all conditions or restrictions applicable to such shares,
including any conditions or restrictions not constituting a substantial risk of forfeiture under Section 83 of the Code, are satisfied
or have lapsed, and the Participant shall execute in favor of the Company a blank stock power with respect to such shares of Restricted
Stock. Alternatively or additionally, the Company may cause such Restricted Shares to bear an appropriate legend indicating their
nontransferability, forfeitability, and any additional restrictions placed on them.

 

8.4             
Voting and Dividend Rights. The holders of Restricted Shares awarded under the Plan shall have the same voting, dividend,
and other rights as the Company's other stockholders. Any dividends or other distributions paid on Restricted Shares may, as specified
by the Committee in the applicable Award, be (a) accumulated and paid when such Restricted Shares vest, (b) invested in additional
Restricted Shares, or (c) paid currently to the holder. Any dividends not paid currently shall be subject to the same conditions
and restrictions, including risks of forfeiture, as the Award with which they relate.

 

ARTICLE 9. STOCK UNITS AND PERFORMANCE
CASH AWARDS.

 

9.1             
Stock Unit or Performance Cash Award Agreement. Each grant of Stock Units or of a Performance Cash Award shall be
evidenced by a Stock Unit or Performance Cash Award Agreement between the recipient and the Company. Awards of Stock Units or Performance
Cash Awards shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent
with the Plan. The provisions of the various Stock Unit and Performance Cash Award Agreements entered into under the Plan need
not be identical.

 

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9.2             
Payment for Awards. To the extent that an Award is granted in the form of Stock Units or a Performance Cash Award,
no cash consideration shall be required of the Award recipients.

 

9.3             
Performance and/or Vesting Conditions. Each Award of Stock Units may or may not be contingent on the satisfaction
of performance targets, or subject to vesting. Vesting shall occur, in full or in installments, upon satisfaction of the conditions
specified in the Stock Unit Agreement. Each Performance Cash Award shall be contingent on the satisfaction of a performance target
intended to satisfy the requirements of Section 162(m) of the Code. The Committee may include as vesting conditions or as conditions
for any Award of Stock Units, and shall include as a condition for a Performance Cash Award, the requirement that the performance
of the Company or a business unit of the Company for a specified period equal or exceed a target determined in advance by the Committee.
The Committee shall determine such performance. If the Award is intended to satisfy the requirements of Section 162(m) of the Code,
such target shall be based on one or more of the criteria set forth in Appendix A. In no event shall the number of Stock Units
the award and/or vesting of which is or are subject to performance-based conditions intended to satisfy the requirements of Section
162(m) of the Code that are granted to any single Participant in a single calendar year exceed 20,000 Common Shares. In no event
shall the total amount of all Performance Cash Awards that are intended to satisfy the requirements of Section 162(m) of the Code
that are granted to any single Participant in a single calendar year exceed $1,200,000. The satisfaction of any performance target
and/or vesting condition may be waived in the case of a Change in Control or the Participant’s death or disability.

 

9.4             
Voting and Dividend Rights. The holders of Stock Units shall have no voting rights. Prior to settlement or forfeiture,
any Stock Unit awarded under the Plan may, at the Committee's discretion, carry with it a right to dividend equivalents. Such right
entitles the holder to be credited with an amount equal to the dividends or other distributions paid on an equal number of Common
Shares while the Stock Units are outstanding. As specified by the Committee in the applicable Award, any cash dividend equivalents
may be either (a) paid currently, free of any vesting condition, or (b) accumulated and paid at the same time and in the same form
as the Stock Units to which they relate, but only if such Stock Units become vested.

 

9.5             
Form and Time of Settlement of Stock Units and Performance Cash Awards. Settlement of vested Stock Units may be made
in the form of (a) cash, (b) Common Shares, or (c) any combination of both, as determined by the Committee. The actual number of
Stock Units eligible for settlement may be larger or smaller than the number included in the original Award, based on predetermined
performance factors. Methods of converting Stock Units into cash may include (without limitation) a method based on the average
Fair Market Value of Common Shares over a series of trading days. Vested Stock Units may be settled in a lump sum or in installments,
and the distribution may occur or commence when all vesting conditions applicable to the Stock Units have been satisfied or have
lapsed, or it may be deferred to any later date; provided, however, that the form and timing of payment of Stock Units and Performance
Cash Awards shall satisfy the requirements of Section 409A of the Code in form and operation. The amount of a deferred distribution
may be increased by an interest factor or by dividend equivalents. Until an Award of Stock Units is settled, the number of such
Stock Units shall be subject to adjustment pursuant to Article 10. Performance Cash Awards shall be settled in cash in accordance
with the terms of the applicable Performance Cash Award Agreement.

 

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9.6             
Creditors’ Rights. A holder of Stock Units or of an unpaid Performance Cash Award shall have no rights other
than those of a general creditor of the Company. Stock Units and unpaid Performance Cash Awards represent an unfunded and unsecured
obligation of the Company, subject to the terms and conditions of the applicable Stock Unit or Performance Cash Award Agreement.

 

ARTICLE 10. PROTECTION AGAINST DILUTION.

 

10.1         
Adjustments. In the event of a subdivision of the outstanding Common Shares, a declaration of a dividend payable
in Common Shares, or a combination or consolidation of the outstanding Common Shares (by reclassification or otherwise) into a
lesser number of Common Shares, corresponding adjustments shall automatically be made in each of the following:

 

(a)               
The number of Options, SARs, Restricted Shares, and Stock Units available for future Awards under Article 3;

 

(b)              
The limitations set forth in Sections 5.2, 7.2, 8.3, and 9.3;

 

(c)               
The number of Common Shares covered by each outstanding Option and SAR;

 

(d)              
The Exercise Price under each outstanding Option and SAR;

 

(e)               
The number of Stock Units included in any prior Award that has not yet been settled; and

 

(f)               
The number of Restricted Shares subject to any unvested Award.

 

In the event of a declaration of an extraordinary
dividend payable in a form other than Common Shares in an amount that has a material effect on the price of Common Shares, a recapitalization,
a spin-off, or a similar occurrence, the Committee shall make such adjustments as it, in its sole discretion, deems appropriate
in one or more of the foregoing. Except as provided in this Article 10, a Participant shall have no rights by reason of any issuance
by the Company of stock of any class or securities convertible into stock of any class, any subdivision or consolidation of shares
of stock of any class, the payment of any stock dividend, or any other increase or decrease in the number of shares of stock of
any class.

 

10.2         
Dissolution or Liquidation. To the extent not previously exercised or settled, Options, SARs, Stock Units and Performance
Cash Awards shall terminate immediately before the dissolution or liquidation of the Company.

 

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10.3         
Reorganizations. In the event that the Company is a party to a merger, consolidation, or sale of fifty percent (50%)
of more of the Company’s stock or assets, all outstanding Awards shall be subject to the agreement of merger or consolidation.
Such agreement shall provide for one or more of the following:

 

(a)               
The continuation of such outstanding Awards by the Company (if the Company is the surviving corporation).

 

(b)              
The assumption of such outstanding Awards by the surviving corporation or its parent, provided that the assumption of Options
or SARs shall comply with Section 424(a) of the Code (whether or not the Options are ISOs).

 

(c)               
The substitution by the surviving corporation or its parent of new awards for such outstanding Awards, provided that the
substitution of Options or SARs shall comply with Section 424(a) of the Code (whether or not the Options are ISOs).

 

(d)              
Full exercisability of outstanding Options and SARs and full vesting of the Common Shares subject to such Options and SARs,
followed by the cancellation of such Options and SARs to the extent not exercised before the closing of the merger or consolidation.
The full exercisability of such Options and SARs and full vesting of such Common Shares shall be contingent on the closing of such
merger or consolidation. In this case, the Optionees shall be able to exercise such Options and SARs during a period of not less
than five full business days preceding the closing date of such merger or consolidation, unless (i) a shorter period is required
to permit a timely closing of such merger or consolidation and (ii) such shorter period still offers the Optionees a reasonable
opportunity to exercise such Options and SARs. Any exercise of such Options and SARs during such period shall be contingent on
the closing of such merger or consolidation.

 

(e)               
The cancellation of outstanding Options and SARs and a payment to the Optionees equal to the excess of (i) the Fair Market
Value of the Common Shares subject to such Options and SARs (whether or not such Options and SARs are then exercisable or such
Common Shares are then vested) as of the closing date of such merger or consolidation over (ii) their Exercise Price. Such payment
shall be made in the form of cash, cash equivalents, or securities of the surviving corporation or its parent with a Fair Market
Value equal to the required amount. Such payment may be made in installments and may be deferred until the date or dates when such
Options and SARs would have become exercisable or such Common Shares would have vested. Such payment may be subject to vesting
based on the Optionee’s continuing Service, provided that the vesting schedule shall not be less favorable to the Optionee
than the schedule under which such Options and SARs would have become exercisable or such Common Shares would have vested. If the
Exercise Price of the Common Shares subject to such Options and SARs exceeds the Fair Market Value of such Common Shares, then
such Options and SARs may be cancelled without making a payment to the Optionees. For purposes of this Subsection (e), the Fair
Market Value of any security shall be determined without regard to any vesting conditions that may apply to such security.

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(f)               
The cancellation of outstanding Stock Units and a payment to the Participants equal to the Fair Market Value of the Common
Shares subject to such Stock Units (whether or not such Stock Units are then vested) as of the closing date of such merger or consolidation.
Such payment shall be made in the form of cash, cash equivalents, or securities of the surviving corporation or its parent with
a Fair Market Value equal to the required amount. Such payment may be made in installments and may be deferred until the date or
dates when such Stock Units would have vested. Such payment may be subject to vesting based on the Participant’s continuing
Service, provided that the vesting schedule shall not be less favorable to the Participant than the schedule under which such Stock
Units would have vested. For purposes of this Subsection (f), the Fair Market Value of any security shall be determined without
regard to any vesting conditions that may apply to such security.

 

(g)              
Full vesting of the Common Shares subject to Restricted Stock Agreements. The full vesting of the Restricted Shares shall
be contingent on the closing of such merger or consolidation.

 

The provisions of this Section 10.3, as well as the provisions
of Sections 8.3 and 9.3 and of any Stock Option Agreement, SAR Agreement, Restricted Stock Agreement, or Stock Unit Agreement providing
for exercisability, transfer or accelerated vesting of any Option, SAR, Restricted Shares, or Stock Units shall be inapplicable
to an Award granted within six months before the occurrence of a merger, acquisition, or other Change in Control if the holder
of such Option, SAR, Restricted Shares, or Stock Units is subject to the reporting requirements of Section 16(a) of the Exchange
Act and no exception from liability under Section 16(b) of the Exchange Act is available to such holder.

 

ARTICLE 11. AWARDS UNDER OTHER PLANS.

 

The Company may grant awards under other
plans or programs. Such awards may be settled in the form of Common Shares issued under this Plan. Such Common Shares shall be
treated for all purposes under the Plan like Common Shares issued in settlement of Stock Units and shall, when issued, reduce the
number of Common Shares available under Article 3.

 

ARTICLE 12. LIMITATION ON RIGHTS.

 

12.1         
Retention Rights. Neither the Plan nor any Award granted under the Plan shall be deemed to give any individual a
right to remain an Employee or otherwise in the Company’s service. The Company and its Parents, Subsidiaries and Affiliates
reserve the right to terminate the Service of any Participant at any time, with or without cause, subject to applicable laws, the
Company’s certificate of incorporation and by-laws, and a written employment agreement (if any).

 

12.2         
Stockholder Rights. Except as the Committee may provide in the applicable Award Agreement, a Participant shall have
no dividend rights, voting rights, or other rights as a stockholder with respect to any Common Shares covered by his or her Award
prior to the time when a stock certificate for such Common Shares is issued or ownership of such Common Shares is noted on the
transfer records of the Company or, if applicable, the time when he or she becomes entitled to receive such Common Shares by filing
any required notice of exercise and paying any required Exercise Price. No adjustment shall be made for cash dividends or other
rights for which the record date is prior to such time, except as expressly provided in the Plan or Award.

 

    	11

    	 

    

12.3         
Regulatory Requirements. Any other provision of the Plan notwithstanding, the obligation of the Company to issue
Common Shares under the Plan shall be subject to all applicable laws, rules and regulations, and such approval by any regulatory
body as may be required. The Company reserves the right to restrict, in whole or in part, the delivery of Common Shares pursuant
to any Award prior to the satisfaction of all legal requirements relating to the issuance of such Common Shares, to their registration,
qualification, or listing, or to an exemption from registration, qualification, or listing.

 

12.4         
No Fractional Shares. No fractional shares shall be issued or delivered pursuant to the Plan. The Committee shall
determine whether cash or other property shall be issued or paid in lieu of fractional shares or whether such fractional shares
or any rights thereto shall be forfeited or otherwise eliminated.

 

12.5         
Clawback. Notwithstanding any other provisions in this Plan, any Award which is subject to recovery under any law,
government regulation or stock exchange listing requirement, will be subject to such deductions and clawback as may be required
to be made pursuant to such law, government regulation or stock exchange listing requirement (or any policy adopted by the Company
pursuant to any such law, government regulation or stock exchange listing requirement).

 

12.6         
Investment Representations; Company Policy. The Committee may require each person acquiring shares of Common Stock
pursuant to a Stock Option or other award under the Plan to represent to and agree with the Company in writing that the Participant
is acquiring the shares for investment without a view to distribution thereof. Each person acquiring shares of Common Stock pursuant
to a Stock Option or other award under the Plan shall be required to abide by all policies of the Company in effect at the time
of such acquisition and thereafter with respect to the ownership and trading of the Company’s securities.

 

12.7         
Non-Registered Stock. The shares of Common Stock to be distributed under this Plan have not been, as of the date
the Plan was adopted by the Board, registered under the Securities Act of 1933, as amended, or any applicable state or foreign
securities laws and the Company has no obligation to any Participant to register the Common Shares or to assist the Participant
in obtaining an exemption from the various registration requirements, or to list the Common Shares on a national securities exchange
or any other trading or quotation system.

 

 

ARTICLE 13. WITHHOLDING TAXES.

 

13.1         
General. To the extent required by applicable federal, state, local, or foreign law, a Participant or his or her
successor shall make arrangements satisfactory to the Company for the satisfaction of any withholding tax obligations that arise
in connection with the Plan. The Company shall not be required to issue any Common Shares or make any cash payment under the Plan
until such obligations are satisfied.

 

    	12

    	 

    

13.2         
Share Withholding. To the extent that applicable law subjects a Participant to tax withholding obligations, the Committee
may, in its discretion, permit such Participant to satisfy all or part of such obligations by having the Company withhold all or
a portion of any Common Shares that otherwise would be issued to him or her or by surrendering all or a portion of any Common Shares
that he or she previously acquired. Such Common Shares shall be valued at their Fair Market Value on the date when they are withheld
or surrendered. This Section 13.2 shall apply only to the minimum extent required by applicable tax laws.

 

ARTICLE 14. FUTURE OF THE PLAN.

 

14.1         
Term of the Plan. The Plan, as set forth herein, shall become effective on the date on which it is approved by the
Company’s stockholders at the special meeting of the Company’s stockholders to be held prior to June 24, 2013, provided
that it is adopted by the Board before or concurrently with such special meeting. The Plan shall remain in effect until the date
when the Plan is terminated under Section 14.2; provided, however, that no ISO may be granted under the Plan after the date that
is 10 years after the date when the Plan was approved by the Company’s stockholders, whichever occurs first.

 

14.2         
Amendment or Termination. The Board may, at any time and for any reason, amend or terminate the Plan. No Awards shall
be granted under the Plan after the termination thereof. The termination of the Plan, or any amendment thereof, shall not affect
any Award previously granted under the Plan.

 

14.3         
Stockholder Approval. An amendment of the Plan shall be subject to the approval of the Company’s stockholders
only to the extent required by applicable laws and rules and regulations. Among such applicable laws and rules and regulations,
Section 162(m) of the Code requires that the Company’s stockholders reapprove the list of available performance criteria
set forth in Appendix A not later than the first meeting of stockholders that occurs in the fifth year following the year in which
the Company’s stockholders previously approved such criteria.

 

ARTICLE 15. DEFINITIONS.

 

15.1         
“Affiliate” means any entity other than the Company, a Parent, or a Subsidiary, if the Company and/or
one or more Parents and/or one or more Subsidiaries own, in the aggregate, not less than 50% of such entity.

 

15.2         
“Award” means any award of an Option, a SAR, a Restricted Share, a Performance Cash Award, or a Stock
Unit under the Plan.

 

15.3         
“Board” means the Company’s Board of Directors, as constituted from time to time.

 

15.4         
“Change in Control” shall mean the occurrence of one or more of the following events:

 

    	13

    	 

    

(a)               
Change in Board Composition. Individuals who constitute the members of the Board as of the date hereof (the “Incumbent
Directors”), cease for any reason to constitute at least a majority of members of the Board; provided that any individual
becoming a director of the Company subsequent to the date hereof shall be considered an Incumbent Director if such individual’s
appointment, election or nomination was approved by a vote of at least 50% of the Incumbent Directors; provided further that any
such individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the
election of members of the Board or other actual or threatened solicitation of proxies or contests by or on behalf of a “person”
(within the meaning of Sections 13(d) and 14(d) of the Exchange Act) other than the Board, including by reason of agreement intended
to avoid or settle any such actual or threatened contest or solicitation, shall not be considered an Incumbent Director;

 

(b)              
Business Combination. Consummation of (i) a reorganization, merger, consolidation, share exchange or other business combination
involving the Company or any of its subsidiaries or the disposition of all or substantially all the assets of the Company, whether
in one or a series of related transactions, or (ii) the acquisition of assets or stock of another entity by the Company (either,
a “Business Combination”), excluding, however, any Business Combination pursuant to which: (A) individuals who were
the “beneficial owners” (as such term is defined in Rule 13d-3 under the Exchange Act), respectively, of the then outstanding
shares of common stock of the Company (the “Outstanding Stock”) and the combined voting power of the then outstanding
securities entitled to vote generally in the election of directors of the Company (the “Outstanding Company Voting Securities”)
immediately prior to such Business Combination beneficially own, upon consummation of such Business Combination, directly or indirectly,
more than 50% of the then outstanding shares of common stock (or similar securities or interests in the case of an entity other
than a corporation) and more than 50% of the combined voting power of the then outstanding securities (or interests) entitled to
vote generally in the election of directors (or in the selection of any other similar governing body in the case of an entity other
than a corporation) of the Surviving Corporation (as defined below) in substantially the same proportions as their ownership of
the Outstanding Stock and Outstanding Company Voting Securities, immediately prior to the consummation of such Business Combination
(that is, excluding any outstanding voting securities of the Surviving Corporation that such beneficial owners hold immediately
following the consummation of the Business Combination as a result of their ownership prior to such consummation of voting securities
of any company or other entity involved in or forming part of such Business Combination other than the Company); (B) no person
(other than the Company, any subsidiary of the Company, any employee benefit plan of the Company or any of its subsidiaries or
any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any subsidiary of the Company)
or group (as such term is defined in Rule 13d-3 under the Exchange Act) becomes the beneficial owner of 50% or more of either (x)
the then outstanding shares of common stock (or similar securities or interests in the case of an entity other than a corporation)
of the Surviving Corporation, or (y) the combined voting power of the then outstanding securities (or interests) entitled to vote
generally in the election of directors (or in the selection of any other similar governing body in the case of an entity other
than a corporation); and (C) individuals who were Incumbent Directors at the time of the execution of the initial agreement or
of the action of the Board providing for such Business Combination constitute at least a majority of the members of the board of
directors (or of any similar governing body in the case of an entity other than a corporation) of the Surviving Corporation; where
for purposes of this subsection (b), the term “Surviving Corporation” means the entity resulting from a Business Combination
or, if such entity is a direct or indirect subsidiary of another entity, the entity that is the ultimate parent of the entity resulting
from such Business Combination;

 

    	14

    	 

    

(c)               
Stock Acquisition. Any person (other than the Company, any subsidiary of the Company, any employee benefit plan of the Company
or any of its subsidiaries or any trustee or other fiduciary holding securities under an employee benefit plan of the Company or
any subsidiary of the Company) or group becomes the beneficial owner of 50% or more of either (x) the Outstanding Stock or (y)
the Outstanding Company Voting Securities; provided, however, that for purposes of this subsection (c) no Change of Control shall
be deemed to have occurred as a result of any acquisition directly from the Company; or

 

(d)              
Liquidation. Approval by the stockholders of the Company of a complete liquidation or dissolution of the Company (or, if
no such approval is required, the consummation of such a liquidation or dissolution).

 

A transaction shall not constitute a Change
in Control if its sole purpose is to change the state of the Company’s incorporation or to create a holding company that
will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such
transaction.

 

15.5         
“Code” means the Internal Revenue Code of 1986, as amended.

 

15.6         
“Committee” means the a committee of the Board, as further described in Article 2.

 

15.7         
“Common Share” means one share of the common stock of the Company.

 

15.8         
“Company” means SAExploration Holdings, Inc., a Delaware corporation.

 

15.9         
 “Covered Employee” means an Employee who is a "covered employee" within the meaning of
Section 162(m)(3) of the Code or any successor to such statute and regulation.

 

15.10     
“Director” means a member of the Company’s Board.

 

15.11     
 “Employee” means a common-law employee of the Company, a Parent, a Subsidiary, or an Affiliate.

 

15.12     
“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

15.13     
“Executive Officer” means an officer of the Company who is considered an executive officer under Section
16 of the Exchange Act.

 

    	15

    	 

    

15.14     
“Exercise Price,” in the case of an Option, means the amount for which one Common Share may be purchased
upon exercise of such Option, as specified in the applicable Stock Option Agreement. “Exercise Price,” in the case
of a SAR, means an amount, as specified in the applicable SAR Agreement, which is subtracted from the Fair Market Value of one
Common Share in determining the amount payable upon exercise of such SAR.

 

15.15     
“Fair Market Value” means the price at which Common Shares were last sold in the principal U.S. market
for Common Shares on the applicable date or, if the applicable date was not a trading day, on the last trading day prior to the
applicable date. If Common Shares are no longer traded on a public U.S. Securities market, Fair Market Value shall be determined
by the Committee in good faith on such basis as it deems appropriate. The Committee’s determination shall be conclusive and
binding on all persons.

 

15.16     
 “ISO” means an incentive stock option described in Section 422(b) of the Code.

 

15.17     
"Non-Employee Director" means a Director who is a "non-employee director" within the meaning
of Rule 16b-3 of the Exchange Act or any successor to such regulation.

 

15.18     
“NSO” means a stock option not described in Sections 422 or 423 of the Code.

 

15.19     
“Option” means an ISO or NSO granted under the Plan and entitling the holder to purchase Common Shares.

 

15.20     
“Optionee” means an individual or estate holding an Option or SAR.

 

15.21     
“Outside Director” means a Director who is an "outside director" within the meaning of
Section 162(m) of the Code and Treasury Regulations Section 1.162-27(e)(3) or any successor to such statute and regulation.

 

15.22     
“Parent” means any corporation (other than the Company) in an unbroken chain of corporations ending with
the Company, if each of the corporations other than the Company owns stock possessing 50% or more of the total combined voting
power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a Parent
on a date after the adoption of the Plan shall be considered a Parent commencing as of such date.

 

15.23     
“Participant” means an individual or estate holding an Award.

 

15.24     
“Performance Cash Award” means an Award of an amount of cash under the Plan, subject to the provisions
of Article 9.

 

15.25     
“Performance Cash Award Agreement” means the agreement between the Company and the recipient of a Performance
Cash Award that contains the terms, conditions and restrictions pertaining to such Performance Cash Award.

 

15.26     
“Plan” means this SAExploration Holdings, Inc. 2013 Long-Term Incentive Plan, as amended from time to
time.

 

15.27     
“Restricted Share” means a Common Share awarded under the Plan.

 

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15.28     
“Restricted Stock Agreement” means the agreement between the Company and the recipient of a Restricted
Share that contains the terms, conditions, and restrictions pertaining to such Restricted Share.

 

15.29     
“SAR” means a stock appreciation right granted under the Plan.

 

15.30     
“SAR Agreement” means the agreement between the Company and an Optionee that contains the terms, conditions,
and restrictions pertaining to his or her SAR.

 

15.31     
“Service” means service as an Employee, provided that the Committee may, in determining a Participant’s
satisfaction of any vesting or similar requirement, in its discretion as it may choose to exercise from time to time with respect
to any Participant or Participants, aggregate with an Employee’s service as an employee his or her service as an independent
contractor (including as a Company director).

 

15.32     
“Stock Option Agreement” means the agreement between the Company and an Optionee that contains the terms,
conditions, and restrictions pertaining to his or her Option.

 

15.33     
“Stock Unit” means a bookkeeping entry representing the equivalent of one Common Share, as awarded under
the Plan, and representing the right, upon the satisfaction of certain conditions, to receive a Common Share, or cash equal to
the value of a Common Share.

 

15.34     
“Stock Unit Agreement” means the agreement between the Company and the recipient of a Stock Unit that
contains the terms, conditions, and restrictions pertaining to such Stock Unit.

 

15.35     
“Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning
with the Company, if each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or
more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that
attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such
date.

 

ARTICLE 16. EXECUTION.

 

To record the adoption of the Plan effective
June 24, 2013, the Company has caused its duly authorized officer to execute this document in the name of the Company.

 

SAEXPLORATION HOLDINGS, INC.

 

By: /s/ Brent Whiteley 

Name: Brent Whiteley

Title:  Secretary

 

    	17

    	 

    

 

 

APPENDIX A

 

Performance Criteria for Restricted Shares, Stock Units,

and Performance Cash Awards

 

 

 

The Committee may establish award and/or
vesting targets derived from all or any of the following criteria, in any combination, when it makes Awards of Restricted Shares,
Stock Units, or Performance Cash Awards on the basis of performance:

 

		(a)	Revenue (or any sub-component thereof);

 

		(b)	Revenue growth;

 

		(c)	Operating costs;

 

		(d)	Operating margin as a percentage of revenue;

 

		(e)	Earnings before interest, taxes, depreciation, and amortization;

 

		(f)	Earnings before income taxes;

 

		(g)	Net operating profit after taxes;

 

		(h)	Net income;

 

		(i)	Net income as a percentage of revenue;

 

		(j)	Free cash flow;

 

		(k)	Earnings per Common Share;

 

		(l)	Net operating profit after taxes per Common Share;

 

		(m)	Free cash flow per Common Share;

 

		(n)	Return on net assets employed before interest and taxes;

 

		(o)	Return on equity, investment, invested capital, net capital employed, assets, or net assets;

 

		(p)	Total stockholder return or relative total stockholder return (as compared with a peer group of the Company);

 

		(q)	Safety performance metrics, including relative to industry standards; or

 

		(r)	Strategic team goals.

 

    	 

    	 

    

To the extent not inconsistent with Section 162(m)
of the Code, the Committee shall adjust the results under any performance criteria to exclude any of the following events, or any
similar that occurs during a performance measurement period: (a) asset write-downs; (b) litigation, claims, judgments
or settlements; (c) the effect of changes in tax law, accounting principles or periods, or other such laws or provisions affecting
reported results; (d) accruals for reorganization and restructuring programs; (e) fluctuations in foreign exchange rates;
and (f) any extraordinary, unusual, or nonrecurring items.CEO EmploymentAgreement

EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT is made and entered into as of the Execution Date set forth on the signature page hereof, by and between Quantum Fuel Systems Technologies Worldwide, Inc.  (the “Company”) and Brian Olson (the “Employee”).
NOW, THEREFORE, in consideration of Employee’s employment and in consideration of the mutual covenants and promises contained in this Agreement, the parties agree as follows:
1.Employment
The Company hereby employs Employee on a full time basis as Chief Executive Officer and President, commencing effective as of the Execution Date and Employee hereby accepts such employment, upon the terms and conditions of this Agreement. 
2.    Term
This Agreement starts on the Execution Date and shall thereafter continue for three years, unless sooner terminated pursuant to the termination provisions as provided in Section 7 below (the “Initial Term”).  In addition, this Agreement shall automatically renew for a period of one year (each, a “Renewal Term”) unless either party gives written notice to the other party at least one hundred eighty days prior to the end of the Initial Term or the then applicable Renewal Term stating that this Agreement will not be renewed.  The Initial Term and each Renewal Term are hereinafter referred to as the “Term.”
3.    Duties, Reporting
Employee shall report to the Board of Directors of the Company.  Employee shall undertake and render all such duties and services consistent with Employee’s title as may from time to time be reasonably assigned to him by the Board of Directors, which shall include the duties and responsibilities listed in Schedule A hereto. Employee will devote his full business time and best efforts to the performance of his duties to the Company and will not engage in any other business, profession or occupation for compensation or otherwise that would conflict with or interfere with the rendition of such services directly or indirectly; provided that Employee shall not be precluded from accepting or continuing appointment to any corporate board of directors or  board of directors or trustees of any charitable or civic organizations, subject, in each case, to the Company’s Corporate Governance Guidelines; provided in each case, and in the aggregate, that such activities do not conflict or interfere with the performance of his duties to the Company.  Employee will (1) perform no Company related services outside the Company except by written consent of the Board of Directors, and (2) once a year disclose all outside activities at the Fiscal Year end Board of Director’s Meeting.” 
4.    Compensation
For services rendered by Employee under this Agreement, the Company agrees to pay Employee and Employee agrees to accept an annual base salary in the amount set forth on the signature page hereof, less all amounts required by law to be withheld, deducted or collected, payable 

in accordance with the Company’s payroll policies, as such policies may be changed from time to time.  The base salary can be increased at any time by the Board at its discretion.  Any bonus provisions set out in Schedule B – Supplemental Compensation and Benefits Arrangements may be modified by the Company in its discretion from time to time.  Employee shall be entitled to such other compensation as may be set forth in Schedule B – Supplemental Compensation and Benefits Arrangements.
5.    Benefits
The Company shall make available to Employee, during the Term of employment, employee benefits (such as vacation and insurance) made generally available by the Company to its employees (“Standard Benefits”), provided that Employee qualifies for such benefits, plus, if applicable, any other or different benefits set forth in Schedule B – Supplemental Compensation and Benefits Arrangements.  Company reserves the right to amend, halt or add to the existing benefits program with 60-day notice to Employee.
6.    Expenses
The Company shall pay or reimburse Employee for reasonable out-of-pocket expenses incurred by employee in connection with the performance of the services provided under this Agreement including, without limitation, membership fees for professional organizations related to the Employee’s position, upon presentation of appropriate documentation and in compliance with the Company’s expense policies in place from time to time.
7.    Termination of Employment
Employee’s employment may terminate as set out below, in which event Employee’s compensation and benefits shall terminate except as otherwise provided below.  The Company has the right to terminate Employee’s employment at any time, with or without Cause or advance notice, as further detailed in this Section:
(a)    By Company Without Cause; By Employee for Good Reason
If Company terminates Employee’s employment when neither Cause nor permanent disability exists or the Employee terminates his employment for “Good Reason,” then Company shall continue to pay to Employee, Employee’s then-current base monthly salary as provided in Section 4 and provide the Standard Benefits pursuant to Section 5, excluding short term and long term disability and life insurance, but not any other compensation or supplemental benefits provided pursuant to Schedule B – Supplemental Compensation and Benefits Arrangements, for a period equal to the Notice Period (as hereinafter defined), on regular payroll days subject to normal payroll deductions, subject, however to the Employee complying with the provisions of this Agreement during such Notice Period, including without limitation the provisions of Sections 8 (Confidentiality), 9 (Return Of Confidential Records), 10 (Assignment Of Inventions), and 11 (Non-Solicitation and Noncompetition).  The “Notice Period” provided in this Agreement shall be a period equal to:

		
	(i)
	in the event the termination of employment occurs within 12 months of a Change in Control, or termination by the Employee for Good Reason within 12 months of a Change in Control, the “Notice Period” shall be twenty-four (24) months, regardless of age or length of service; or

		
	(ii)
	in the event the termination of employment occurs between the Execution Date and June 1, 2014, the “Notice Period” shall be eighteen (18) months, regardless of age or length of service; or

		
	(iii)
	in all other cases, the “Notice Period” shall be twelve (12) months, regardless of age or length of service. 

For the purpose of this section:
“Change in Control” means (i) a change in ownership or control of the Company effected through a merger, consolidation or acquisition by any person or related group of persons (other than an acquisition by the Company or by a Company-sponsored employee benefit plan or by a person or persons that directly or indirectly controls, is controlled by, or is under common control with, the Company) of beneficial ownership (within the meaning of Rule 13d-3 of the Securities Exchange Act of 1934) of securities possessing more than fifty percent (50%) of the total combined voting power of the outstanding securities of the Company, or (ii) the sale or other disposition of all or substantially all of the assets of the Company.
“Good Reason,” applicable solely to Change in Control, means the occurrence of any of the following events or conditions, unless Employee has expressly consented to such event or condition in writing:
		
	(i)
	a reduction in the Employee’s base salary;

		
	(ii)
	a material change in Employee’s title, duties and/or responsibilities; or

		
	(iii)
	the Company’s material breach of this Agreement.

provided, however, Employee shall not have Good Reason for termination  unless (A) Employee gives the Company written notice of termination for Good Reason within thirty days following the event or condition giving rise to Good Reason occurs, (B) the Company does not correct the event or occurrence giving rise to Good Reason within thirty days following its receipt of written notice from Employee and (C) Employee actually resigns within thirty days following the expiration of the thirty day cure period.
The Notice Period provided herein is intended to be inclusive of all other notice of termination or severance entitlements to which the Employee may be entitled.  The Employee acknowledges and agrees that such notice period constitutes a greater right and/or benefit than any statutory notice, termination pay and/or severance pay to which the Employee would otherwise be entitled to receive with respect to termination of employment.

As a condition precedent to Employee’s receiving any payments and benefits pursuant to the Notice Periods described above, Company and Employee shall enter into a release in a form acceptable to Company and Employee whereby Employee and Company shall release all claims against the other party.
(b)    By Company for Cause
Company may terminate Employee’s employment for Cause.  Cause shall mean:
		
	(i)
	Employee’s intentional and continuous failure to carry out the material responsibilities as expected and directed by the Board reasonably requested or directed by the or Board of Director (other than during the period of disability), which failure has continued for a period of at least thirty days after Employee’s receipt of a written notice signed by the Board of Directors describing the failure and the actions needed to be performed by Employee in order to correct such failure (e.g. Schedule A).

		
	(ii)
	Employee’s material and intentional breach of Section 8 of this Agreement;

		
	(iii)
	Willful misconduct or gross negligence in connection the performance of Employee’s duties hereunder;

		
	(iv)
	Any conduct on the part of Employee which constitutes a willful breach of any statutory or common law duty of loyalty to Company;

		
	(v)
	Employee’s being convicted of a felony (other than a traffic violation); and

		
	(vi)
	Employee’s dishonesty, misappropriation or fraud (other than good faith expense account disputes) with regard to Company or its assets.

Upon termination of employment for Cause, Company shall pay Employee’s base salary, accrued vacation and all other benefits required under established labor laws through the effective date of termination.
(c)    By Employee
Employee may terminate Employee’s employment at any time by giving 30 days’ advance written notice of termination, provided that Company may accelerate the termination date by giving written notice of the acceleration.  Upon termination of employment by Employee, Company shall pay Employee’s base salary, accrued vacation and all other benefits required under established labor laws through the effective date of termination.  
(d)    Death
Employee’s employment shall terminate automatically upon Employee’s death.
(e)    Permanent Disability

In the event that Employee is unable to perform the essential functions of Employee's employment-related duties (after reasonable accommodation) for a continuous period of one-hundred and twenty (120) days or more because of one or more mental or physical illnesses and/or disabilities, and if the mental or physical illnesses and/or disabilities of Employee that have prevented him from performing the essential functions of his employment-related duties are, in the opinion of the Board of Directors acting reasonably, likely to continue, Employee's employment may be terminated by the Company upon payment to Employee of (i) Employee's base salary, accrued vacation and benefits to the date of termination and (ii) any termination and severance pay required by statute; provided, however, that Employee will be entitled to receive benefits under the Company's long term disability policy throughout the period of incapacity following termination of employment, conditional upon Employee meeting all conditions contained in the applicable insurance policy.
8.    Confidentiality
Employee agrees not to directly or indirectly, use, or disclose or make available for use to anyone other than the Company, its affiliates, or their agents, any Confidential Information (as defined below) known to Employee as a result of his relationship with the Company, except as required in Employee’s performance of services for the Company or as authorized in writing by the Manager.  “Confidential Information” means, but is not limited to, all designs, software, hardware, firmware, manuals, drawings, trade secrets, calculations, formulas, protocols, procedures, methods, algorithms, research, specifications, current or prospective customer lists, supplier lists, costs, marketing materials, business and financial records, pricing or sales policies, development plans, marketing strategies, and all other information belonging to the Company, or its affiliates or that the Company or its affiliates have from its customers or suppliers and do not have the right to disclose, related to the business or prospective business of the Company or its affiliates.  Confidential Information does not include information that is (i) generally or readily available to the public; (ii) publicly known or becomes publicly known through no fault of Employee; or (iii) received from a third party without violation of a nondisclosure obligation and without obligation of confidentiality.
When used in relation to a party to this Agreement, “affiliate” shall mean any corporation or entity that (i) is controlled, either directly or indirectly, by the party; (ii) is under common control, either directly or indirectly, with the party; or (iii) controls the party. “Control” means the ability to vote greater than fifty percent (50%) of the outstanding voting securities in or otherwise direct the management of a corporation or entity.

9.    Return of Confidential Records
All forms of information and all physical property made or compiled by Employee prior to or during the Term of employment pursuant to this Agreement containing or relating in any way to Confidential Information shall be the Company’s exclusive property.  All such materials and any copies thereof shall be held by Employee in trust solely for the benefit of the Company and shall be delivered to the Company upon termination of Employee’s employment with the Company, or at any other time upon the Company’s request.

10.    Assignment of Inventions
(a)    The Company’s Exclusive Property
All of Employee’s interest, rights, and claim of ownership in any and all Confidential Information, inventions, discoveries, improvements, suggestions, proposals, and ideas (collectively, “Inventions,” whether patentable or not) Employee has made or shall make during the period of Employee’s employment with the Company, whether made solely by Employee or jointly with others, and whether or not made during working hours, which relate or are applicable, directly or indirectly, to any phase of the Company’s business or its relationships with its customers or suppliers, including, but not limited to, the Company’s actual or anticipated research or development or the actual or anticipated research or development of the Company’s customers or suppliers to which the Company has access, shall, as between the Employee and the Company, be the exclusive property of the Company, its successors, assignees or nominees.
(b)    Disclosure and Assistance
Employee will disclose Inventions to the Company promptly and in writing.  When requested, and at the Company’s expense, Employee will assist the Company or its designee in efforts to protect such Inventions, including, without limitation, by taking any of the following actions:  (i) making patent application(s) on any Invention specified by the Company in such jurisdictions as determined by the Company; (ii) executing documents of assignment to the Company or its designee of all Employee’s right, title and interest in and to any Invention, any patent applications relating thereto, and any patents granted thereon; and (iii) from time to time, at the request of the Company, executing all instruments and rendering all such assistance as may reasonably be required in order to protect the rights of the Company or its designee and to vest in the Company or its designee all rights to any Invention, patent application and patents.
(c)    Company’s Discretion
Employee understands and agrees that Company or its designee will determine, in its sole and absolute discretion, whether and to what extent applications will be filed for patents on any Invention which is the exclusive property of the Company and whether any such application will be abandoned prior to issuance of a patent.
(d)    Prior Inventions
Employee has attached as Schedule C – Prior Inventions a list of all Inventions, patent applications and patents made or conceived by him prior to the Effective Date, which are subject to prior agreements or which Employee desires to exclude from this Agreement.  If no such list is attached, Employee hereby represents and warrants that there are no such Inventions, patent applications or patents.
11.    Non-Solicitation and Non-Competition Covenants

Employee acknowledges that by virtue of his position, Employee will gain information about Company’s confidential business plans, marketing plans and other strategic Confidential Information that would cause harm to the Company’s business in any market in which Company conducts business if it were to become available to the public.
Employee further acknowledges that in the course of employment, Employee will develop business relationships with Company’s customers and prospective customers and, whether or not business relationships with specific customers and prospective customers are developed, Employee will be a prominent representative in the eyes of customers and prospective customers in any market in which Company conducts business.
Finally, Employee acknowledges that Employee will work closely with a team of other senior executives and manage or have substantial interaction with other employees who are key to Company’ business operation and that the maintenance of the relationship with this group of employees is essential to the ongoing business.
In acknowledgement of Company’s legitimate interest in protecting Confidential Information, customers, prospective customers and employees, Employee agrees to the following:
a)    for a period of 12 months from the date employment is terminated for any reason Employee agrees not to directly or indirectly solicit Competing Business from any Protected Customer; and
b)    for a period of 12 months from the date employment is terminated for any reason Employee agrees not to directly or indirectly solicit Competing Business from any Prospect; and
c)    for a period of 12 months from the date employment is terminated for any reason Employee will not (individually or together with any other organization or person) attempt to influence any “Protected Employee” to terminate his or her employment with Company.
For the purposes of this Section:
“Competing Business” means a business that competes with the business of Company and that is involved in the design, development, sale, marketing, manufacture or assembly  of products that compete with the products and/or services offered for sale by the Company. 
 “Protected Customer” means any customer of the Company  within 24 months of the end of employment.
“Prospect” means any organization or person from whom Company solicited business within 24 months of the end of employment.
 “Company” means Company or any of its affiliates. 
“Protected Employee” means any employee who Employee directly or indirectly managed or with whom Employee had substantial contact, in both cases within 24 months of the end of employment.

Employee agrees that the restrictions listed above are separate and distinct.  If one or more of the restrictions is found to be unenforceable by a court, Employee agrees that the remaining restrictions may survive and be enforced.
EMPLOYEE ACKNOWLEDGES THAT THE COVENANTS SET FORTH IN THIS AGREEMENT IN SECTIONS 8 (CONFIDENTIALITY), 9 (RETURN OF CONFIDENTIAL RECORDS), 10 (ASSIGNMENT OF INVENTIONS), 11 (NON-SOLICITATION)  DO NOT IMPOSE UNREASONABLE RESTRICTIONS OR WORK A HARDSHIP ON EMPLOYEE, ARE ESSENTIAL TO THE WILLINGNESS OF COMPANY TO HIRE, TRAIN AND EXPOSE EMPLOYEE TO COMPANY’S CONFIDENTIAL INFORMATION, ARE NECESSARY AND FUNDAMENTAL TO THE PROTECTION OF COMPANY’S BUSINESS, AND ARE REASONABLE AS TO SCOPE, DURATION, AND TERRITORY.  
12.    No Conflicting Agreements
Employee represents and warrants to the Company that (i) the performance of the obligations under this Agreement will not breach any agreement to keep in confidence proprietary information acquired by Employee in confidence or in trust prior to the date of this Agreement; (ii) Employee has not brought and will not bring to the Company or use in the performance of his responsibilities at the Company any proprietary information or trade secret information belonging to any previous employer or other third party, unless Employee has obtained written authorization to do so and delivered such authorization to the Company; and (iii) Employee is not a party to, and will not enter into during the Term of this Agreement, any agreement, either written or oral, that conflicts with this Agreement or limits Employee’s ability to carry out his obligations under this Agreement.  Employee agrees to indemnify Company and to hold it harmless against any third party claims arising out of any breach of the above representations and covenants.
13.    Additional Covenants
Employee acknowledges that his employment shall be subject to additional policies, procedures, and agreements adopted by the Company from time to time, including but not limited to the Company’s Code of Business Conduct and Insider Trading Policy.  Employee agrees to acknowledge and/or sign such policies, procedures, and/or agreements as may be required by the Company from time to time.  In the event that the terms of any further policies, procedures, or agreements adopted by the Company address matters already addressed, either wholly or partially, within this Agreement, those provisions which afford the Company the greatest protection or benefit shall be deemed to be the governing provisions.  The parties expressly confirm that this section 13 shall not apply to any policy, procedure or agreement subsequently adopted by the Company which would have the effect of amending or altering the terms of this Agreement in a manner adverse to Employee unless expressly agreed to by the Employee in writing or as may be otherwise required by applicable law.
14.    Remedies
(a)    Equitable Relief

Employee acknowledges that a breach of this Agreement by Employee may cause Company irreparable harm, for which monetary damages may not be adequate compensation.  Employee therefore agrees that the Company shall have the right, in addition to any other rights which the Company may have, to enjoin Employee by appropriate proceedings for an injunction, without the necessity of posting a bond, from engaging in any act or omission with respect to any breach of this Agreement by Employee or to obtain other equitable relief with respect to any breach of this Agreement by Employee.  Employee further agrees that all restrictions imposed upon Employee under this Agreement during and after the Term of this Agreement are reasonable and valid, and Employee waives any defenses to the strict enforcement thereof.
(b)    Other Remedies
In the event of any breach by Company or Employee of any of the provisions of this Agreement, in addition to the remedies set forth in this Agreement, the other party shall be entitled to pursue any other remedies available in law or equity.
15.    Further Agreements
Employee shall, at the request of the Company, execute and deliver to the Company such agreements related to the confidentiality of the Company’s technology and other proprietary rights or assigning to the Company any inventions developed by Employee for the Company or using Company resources, as the Company may reasonably request from time to time.
16.    General
(a)    Governing Law - Arbitration
This Agreement shall be governed by, construed and enforced in accordance with the laws of the State of California, excluding choice of law provisions.  Any dispute or controversy arising under, out of, in connection with or in relation to this Agreement shall be finally determined and settled by arbitration in Los Angeles, California, in accordance with the rules and procedures of the American Arbitration Association and judgment upon the award may be entered in any court having jurisdiction thereof.  If any arbitration or other proceeding is brought for the enforcement of this Agreement, or because of an alleged dispute, breach, default or misrepresentation in connection with any of the provisions of this Agreement, the successful or prevailing party shall be entitled to recover reasonable attorneys’ fees and other costs incurred in that action or proceeding, in addition to any other relief that may be granted.
(b)    Notices
Any notice required or permitted to be given under this Agreement shall be sufficient if in writing, and personally delivered, or mailed by registered or certified mail, return receipt requested, to a party at the address or number set forth for the party below, or to such other address as may be designated from time to time by written notice; the notice shall be deemed given on the date of personal delivery or the date set forth on the return receipt.

(c)    Amendments and Waivers
This Agreement may not be amended or otherwise modified, except in a writing executed by both parties.  No provision of this Agreement may be waived except in a writing executed by the party waiving such provision, and no waiver of breach shall constitute a subsequent waiver of the same or another breach.
(d)    Benefit and Assignment
This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns.  Neither this Agreement nor the rights or duties of either party may be assigned by either party without the prior written consent of the other party, except that in the discretion of the Company the Company may assign, temporarily or permanently and without Employee’s consent, its rights and obligations under this Agreement to a successor of the Company.
(e)    Entire Agreement
This Agreement and all other agreements and exhibits referenced herein constitute the entire understanding and agreement among the parties, supersede any and all prior agreements, arrangements and understandings with respect to the subject matter of this Agreement and there are no other agreements, understandings, restrictions, representations or warranties among the parties with respect to the subject matter of this Agreement other than those set forth or provided for herein.  The Parties acknowledge that they have reviewed and entered into this Agreement voluntarily and without coercion, duress or other outside influence.  
(f)    Severability
If any provision of this Agreement shall be held invalid, illegal or unenforceable in any jurisdiction for any reason, including, without limitation, the duration of any restrictive covenant, its scope or the extent of the activities prohibited or required by it, then, to the full extent permitted by law (a) all other provisions hereof shall remain in full force and effect in such jurisdiction and shall be liberally construed in order to carry out the intent of the parties hereto as nearly as may be possible; (b) such invalidity, illegality or unenforceability shall not affect the validity, legality or enforceability of any other provision hereof; and (c) the parties will request that any court having jurisdiction reform such provision to the extent necessary for such provision to be enforceable under applicable law.
(g)    Survival of Undertakings
The provisions of Sections 7(a), 8, 9, 10, 11 and 14, any post-termination covenants contained in Schedule A – Supplemental Compensation and Benefits Arrangements, and this Section 16 shall survive the termination of Employee’s employment with the Company irrespective of the reasons therefor.  Employee acknowledges and agrees that the restrictions imposed upon Employee by Sections 8, 9, 10 and 11, and the purpose of such restrictions are reasonable and are designed to protect the Confidential Information and the continued 

success of the Company without unduly restricting Employee’s future employment by others. 
(h)    Section 409A Compliance
It is intended that this Agreement and its administration be in compliance with section 409A of the Code, including, but not limited to, any future amendments to section 409A, and any other Internal Revenue Service or other governmental rulings or interpretations (“IRS Guidance”) issued pursuant to section 409A so as not to subject the Employee to payment of interest or any additional tax under section 409A. In furtherance thereof, if payment or provision of any amount or benefit hereunder that is subject to section 409A at the time specified herein would subject such amount or benefit to any additional tax under such section, the payment or provision of such amount or benefit shall be postponed to the earliest commencement date on which the payment or provision of such amount or benefit could be made without incurring such additional tax. In addition, to the extent that any IRS Guidance issued under section 409A would result in Employee being subject to the payment of interest or any additional tax under section 409A, the parties agree to amend this Agreement in order to avoid the imposition of any such interest or additional tax under section 409A, which amendment shall have the minimum economic effect necessary and be reasonably determined in good faith by the Company and Employee.
(i)    Counsel
BY EXECUTING THIS AGREEMENT, EMPLOYEE ACKNOWLEDGES HE HAS CAREFULLY READ THE TERMS OF THIS AGREEMENT AND HAS HAD THE OPPORTUNITY TO BE ADVISED BY LEGAL COUNSEL OF HIS CHOICE.    

    
	
		
	Execution Date:
	June 24, 2013

	Employee:
	Brian Olson

	Position:
	Chief Executive Officer

	Annual Salary:
	$400,000

    
	
			
	COMPANY:
	Quantum Fuel Systems Technologies Worldwide, Inc.

	 
	By:  
	/s/ Bradley Timon

	
			
	EMPLOYEE:
	

	 
	

	/s/ W. Brian Olson

	 
	Name:
	W. Brian Olson

	 
	Address:
	25242 Arctic Ocean Drive, Lake Forest, CA 92630

                

 
Schedule A – Duties and Responsibilities
 

 It is the responsibility of the Chief Executive Officer, inter alia, to: 

		
	(a)
	develop, facilitate, and manage strategic planning within the company leadership with the goal to establish proposals for consideration by the Board.

		
	(b)
	manage the business and affairs of the Company within the guidelines established by the Board and report to the Board of Directors; 

		
	(c)
	recommend to the Board strategic directions for the Company’s business, and when approved by the Board, implement the corresponding strategic, business and operational plans; 

		
	(d)
	direct and monitor the activities of the Company in a manner such that agreed upon targets are met and such that the assets of the Company are safeguarded and optimized in the best interests of all the shareholders; 

		
	(e)
	develop and implement operational policies to guide the Company within the limits prescribed by the Company’s By-Laws and the framework of the strategic directions adopted by the Board; 

		
	(f)
	develop and recommend top-level organizational structure and staffing to the Board and direct the implementation of the Board’s decisions in this regard; 

		
	(g)
	develop and seek the Board’s concurrence for plans for management development and succession in all key positions and then implement such plans; 

		
	(h)
	manage and oversee the required interfaces between the Company and its shareholders, the investment community, media, governments and their agencies, employees and the general public; 

		
	(i)
	meet regularly and as required with the Chairman and other Board members to ensure that they are provided in a timely manner with all information and access to management necessary to permit the Board to fulfill its statutory and other obligations; and

		
	(j)
	direct the activities of the General Counsel and Corporate Secretary; and 

		
	(k)
	ensure that the work carried out by the Company and its subsidiaries is performed safely, and is of a quality which complies with the Company’s health and safety, and quality management policies and procedures. 

This list is not inclusive.  Any additional duties will not be inconsistent with the employee’s position.

Schedule B – Supplemental Compensation and Benefits

Bonus Entitlements:

Employee will be eligible to participate in the Company bonus program.  Employee’s annual bonus eligibility will be up to 100% of base salary.  Bonus criteria will be set annually by Company and the terms of the bonus plan, including the percentages set out above, may be modified by Company at its discretion.

Other Supplemental Benefits: 

RESTRICTED STOCK AND EMPLOYEE STOCK OPTIONS:  Employee will be eligible for rewards under the company Stock Option Plan as is and may be determined by the board of Directors from time to time

ADDITIONAL BENEFITS.  It is the intent of Quantum’s Board of Directors to provide for the CEO/President position additional executive benefits to be entirely paid for at company expense. These benefits are in recognition of the effort, focus and energy necessary to carry the responsibilities of this position to greater future success.  These additional executive benefits would currently include (1) a company paid term life insurance policy with a face value of $ 1,000,000 to be paid to the executives beneficiaries should a death of this individual occur, and (2) a long term disability policy to protect against any future disability to this same executive. It is the intent of the Board of Directors of Quantum to have these be a company paid benefit, with a gross up amount of compensation paid to this individual to cover any incidental tax that may be rendered upon them for receipt of these benefits.

Four (4) weeks of paid vacation each calendar year, pro rated on a daily basis for any period of the Term which is less than a full calendar year.
A car allowance of one thousand ($1,000) per month;
    

Schedule C – Prior Inventions

None

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