Document:

Exhibit 10.2

 

Execution Version

 

AMENDED AND RESTATED VOTING AGREEMENT

 

This Amended and
Restated Voting Agreement (this “Agreement”), dated as of June 6, 2021 and effective as of May 9,
2021, is entered into by and among Bonanza Creek Energy, Inc., a Delaware corporation (“Parent”),
Extraction Oil & Gas, Inc., a Delaware corporation (the “Company”), and Kimmeridge Energy
Management Company, LLC, a Delaware limited liability company (“Stockholder”). Parent, the Company and
Stockholder are each sometimes referred to herein individually as a “Party” and collectively as the
“Parties.”

 

WHEREAS the Company, Parent,
and Merger Sub, have entered into an Agreement and Plan of Merger (as the same may be amended from time to time, the “Merger
Agreement”), providing for, among other things, the merger (the “Merger”) of Merger Sub and the
Company pursuant to the terms and conditions of the Merger Agreement;

 

WHEREAS, concurrently with
the execution and delivery of this Agreement, (i) the Company, Parent, and Merger Sub, are entering into an Amendment No. 1
(the “Amendment”), dated as of the date hereof, to the Merger Agreement, and (ii) Parent, Raptor Condor
Merger Sub 1, Inc., a Delaware corporation and a wholly owned Subsidiary of Parent (“Merger Sub 1”), Raptor
Condor Merger Sub 2, LLC, a Delaware limited liability company and a wholly owned Subsidiary of Parent, Crestone Peak Resources LP, a
Delaware limited partnership, CPPIB Crestone Peak Resources America Inc., a Delaware corporation (“CPPIB Crestone Peak”),
Crestone Peak Resources Management LP, a Delaware limited partnership and the Company, are entering into an Agreement and Plan of Merger
(as the same may be amended from time to time, the “Condor Merger Agreement”), providing for, among other things,
the merger of Merger Sub 1 and Condor pursuant to the terms and conditions of the Condor Merger Agreement;

 

WHEREAS the Company, Parent,
and Merger Sub, have previously entered into that certain Voting Agreement dated as of May 9, 2021 (the “Previous Agreement”)
and desire to amend and restate the Previous Agreement in order to induce Parent to enter into the Amendment;

 

WHEREAS, Stockholder is willing
to make certain representations, warranties, covenants, and agreements as set forth in this Agreement with respect to the 9,799,080 shares
of common stock, par value $0.01 per share, of the Company (“Company Common Stock”) Beneficially Owned (as defined
below) by Stockholder (the “Original Shares” and, together with any additional shares of Company Common Stock
pursuant to Section 6 hereof, the “Shares”); and

 

WHEREAS, as a condition to
their willingness to enter into the Amendment, Parent and the Company have required that Stockholder, and Stockholder has agreed to, execute
and deliver this Agreement.

 

NOW, THEREFORE, in consideration
of the foregoing and the respective representations, warranties, covenants, and agreements set forth below and for other good and valuable
consideration, the receipt, sufficiency, and adequacy of which are hereby acknowledged, the Parties hereto, intending to be legally bound,
do hereby agree as follows:

 

    

    

    

 

	1.	Definitions.

 

For purposes of this Agreement,
capitalized terms used and not otherwise defined herein shall have the respective meanings ascribed to such terms in the Merger Agreement.
When used in this Agreement, the following terms in all of their tenses, cases, and correlative forms shall have the meanings assigned
to them in this Section 1.

 

(a)            “Affiliate”
means with respect to any Person, any other Person directly or indirectly, controlling, controlled by, or under common control with, such
Person, through one or more intermediaries or otherwise; provided, however, that solely for purposes of this Agreement, notwithstanding
anything to the contrary set forth herein, neither the Company nor any of its Subsidiaries shall be deemed to be a Subsidiary or Affiliate
of Stockholder; provided, further, that, for the avoidance of doubt, any member of Stockholder shall be deemed an Affiliate Stockholder;
and provided, further, that an Affiliate of Stockholder shall include any investment fund, vehicle or holding company of which Stockholder
or an affiliate thereof serves as the general partner, managing member or discretionary manager or advisor.

 

(b)            “Beneficially
Own” or “Beneficial Ownership” has the meaning assigned to such term in Rule 13d-3 under
the Exchange Act, and a Person’s beneficial ownership of securities shall be calculated in accordance with the provisions of such
rule (in each case, irrespective of whether or not such rule is actually applicable in such circumstance). For the avoidance
of doubt, “Beneficially Own” and “Beneficial Ownership” shall also include record
ownership of securities.

 

(c)            “Beneficial
Owner” shall mean the Person who Beneficially Owns the referenced securities.

 

	2.	Representations of Stockholder. Stockholder represents and warrants to
Parent that:

 

(a)            Ownership
of Shares. Stockholder (i) is the Beneficial Owner of all of the Original Shares free and clear of any proxy, voting restriction,
adverse claim, or other Encumbrances, other than those created by this Agreement or under applicable federal or state securities laws;
and (ii) has the sole voting power over all of the Original Shares. Except as expressly provided by this Agreement, there are no
options, warrants, or other rights, agreements, arrangements, or commitments of any character to which Stockholder is a party relating
to the pledge, disposition, or voting of any of the Original Shares and there are no voting trusts or voting agreements with respect to
the Original Shares.

 

(b)            Disclosure
of All Shares Owned. Neither Stockholder nor any of its Affiliates Beneficially Owns any shares of Company Common Stock other than
the Original Shares.

 

(c)            Power
and Authority; Binding Agreement. Stockholder has full limited liability company power and authority to enter into, execute, and
deliver this Agreement and to perform fully Stockholder’s obligations hereunder (including the proxy described in Section 3(b) below)).
This Agreement has been duly and validly executed and delivered by Stockholder and constitutes the legal, valid, and binding obligation
of Stockholder, enforceable against Stockholder in accordance with its terms.

 

(d)            No
Conflict. The execution and delivery of this Agreement by Stockholder does not, and the consummation of the transactions contemplated
hereby and the compliance with the provisions hereof will not, conflict with or violate any Law applicable to Stockholder or result in
any breach of or violation of, or constitute a default (or an event that with notice or lapse of time or both would become a default)
under, or give to others any rights of termination, amendment, acceleration, or cancellation of, or result in the creation of any Encumbrance
on any of the Shares pursuant to, any agreement or other instrument or obligation, including organizational documents binding upon Stockholder
or any of the Shares.

 

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(e)            No
Consents. No Consent, order or declaration of any Governmental Entity or any other Person on the part of Stockholder is required in
connection with the valid execution and delivery of this Agreement.

 

(f)            No
Litigation. There is no Proceeding pending against, or to the knowledge of Stockholder, threatened against or affecting, Stockholder
that could reasonably be expected to materially impair or materially adversely affect the ability of Stockholder to perform Stockholder’s
obligations hereunder or to consummate the transactions contemplated by this Agreement on a timely basis.

 

	3.	Agreement to Vote Shares.

 

Stockholder irrevocably and
unconditionally agrees during the term of this Agreement, at any annual or special meeting of the Company called with respect to the following
matters, and at every adjournment or postponement thereof (each, a “Covered Meeting”), to appear at any such meeting
or otherwise cause the Shares to be counted as present thereat for purpose of establishing a quorum and vote or cause the holder of record
to vote the Shares at such meeting (i) in favor of (1) adoption of the Merger Agreement and approval of any other matters necessary
for consummation of the transactions contemplated by the Merger Agreement, including the Merger and (2) any proposal to adjourn or
postpone such meeting of stockholders of the Company to a later date if there are not sufficient votes to approve the Merger; and (ii) against
(1) any Company Competing Proposal or any of the transactions contemplated thereby, (2) any action, proposal, transaction, or
agreement which could reasonably be expected to result in a breach of any covenant, representation or warranty, or any other obligation
or agreement of the Company under the Merger Agreement or of Stockholder under this Agreement, and (3) any action, proposal, transaction,
or agreement that could reasonably be expected to impede, interfere with, delay, discourage, adversely affect, or inhibit the timely consummation
of the Merger or the fulfillment of Parent’s, the Company’s or Merger Sub’s conditions under the Merger Agreement or
change in any manner the voting rights of any class of shares of the Company (including any amendments to the Company’s Organizational
Documents). Any attempt by the Stockholder to vote, consent or express dissent with respect to (or otherwise to utilize the voting power
of), the Shares in contravention of this Section 3 shall be null and void
ab initio.

 

	4.	No Voting Trusts or Other Arrangement.

 

Stockholder agrees that during
the term of this Agreement Stockholder will not, and will not permit any Affiliate to, deposit any of the Shares in a voting trust, grant
any proxies with respect to the Shares, or subject any of the Shares to any arrangement with respect to the voting of the Shares other
than agreements entered into with Parent.

 

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		5.	Transfer and Encumbrance.

 

Stockholder agrees that prior
to a shareholder vote on the Merger Agreement and the other items enumerated in Section 3
hereto at a Covered Meeting, Stockholder will not, directly or indirectly, transfer, sell, offer, exchange, assign, pledge, convey any
legal or Beneficial Ownership interest in or otherwise dispose of (by merger (including by conversion into securities or other consideration
but excluding any disposition made by the Stockholder pursuant to the Merger and the transactions contemplated by the Merger Agreement),
by tendering into any tender or exchange offer, by operation of Law or otherwise) or Encumber (“Transfer”) any
of the Shares or enter into any contract, option or other agreement with respect to, or consent to, a Transfer of any of the Shares or
Stockholder’s voting or economic interest therein. This Section 5 shall not prohibit a Transfer of the Shares by Stockholder
to an Affiliate of Stockholder; provided, that a Transfer referred to in this sentence shall be permitted only if, as a precondition to
such Transfer, the transferee agrees in a writing, reasonably satisfactory in form and substance to Parent, to be bound by all of the
terms of this Agreement. Any attempted Transfer of Shares or any interest therein in violation of this Section 5 shall, to
the fullest extent permitted by Law, be null and void ab initio. If any involuntary Transfer of any of Stockholder’s Shares
shall occur, the transferee (which term, as used herein, shall include any and all transferees and subsequent transferees of the initial
transferee) shall take and hold such Shares subject to all of the restrictions, liabilities and rights under this Agreement, which shall
continue in full force and effect until valid termination of this Agreement. For the avoidance of doubt, nothing in this Agreement will
restrict the Stockholder from Transferring any Shares following a shareholder vote on the Merger Agreement and the other items enumerated
in Section 3 hereto at a Covered Meeting, regardless of the outcome of such
vote.

 

		6.	Additional Purchases; Adjustments.

 

Stockholder agrees that any
shares of Company Common Stock and any other shares of capital stock or other equity of the Company that Stockholder purchases, acquires
the voting power or otherwise acquires Beneficial Ownership of after the execution of this Agreement and prior to the record date for
any Covered Meeting shall be subject to the terms and conditions of this Agreement to the same extent as if they constituted Shares as
of the date hereof for all purposes of this Agreement, and Stockholder shall promptly notify the Company of the existence of any such
after-acquired Shares. In the event of any stock split, stock dividend, merger, reorganization, recapitalization, reclassification, combination,
exchange of shares or the like of the capital stock of the Company affecting the Shares, the terms of this Agreement shall apply to the
resulting securities and such resulting securities shall be subject to the terms and conditions of this Agreement to the same extent as
if they constituted Shares as of the date hereof for all purposes of this Agreement.

 

		7.	Waiver of Appraisal and Dissenters’ Rights and Certain Other Actions.

 

(a)            Waiver
of Appraisal and Dissenters’ Rights. To the fullest extent permitted by Law, Stockholder hereby irrevocably and unconditionally
waives, and agrees not to assert or perfect, any rights of appraisal (including under Section 262 of the DGCL) or rights to dissent
in connection with the Merger that Stockholder may have by virtue of ownership of the Shares.

 

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(b)            Waiver
of Certain Other Actions. Stockholder hereby agrees not to commence, join in, and agrees to take all actions necessary to opt out
of any class in any class action with respect to, any claim, derivative or otherwise, against Parent, Merger Sub or the Company or any
of their respective Affiliates and each of their successors or directors relating to the negotiation, execution or delivery of this Agreement
or the Merger Agreement or the consummation of the transactions contemplated hereby or thereby, including any claim (a) challenging
the validity of, or seeking to enjoin the operation of, any provision of this Agreement or the Merger Agreement (including any claim seeking
to enjoin or delay the Closing) or (b) alleging a breach of any fiduciary duty of the Company Board in connection with the negotiation
and entry into this Agreement, the Merger Agreement or the transactions contemplated hereby or thereby, and hereby irrevocably waives
any claim or rights whatsoever with respect to any of the foregoing.

 

		8.	Termination.

 

This Agreement shall terminate
upon the earliest to occur of (the “Expiration Time”): (a) the Effective Time; (b) the date on which
the Merger Agreement is terminated in accordance with its terms; (c) the termination of this Agreement by mutual written consent
of the Parties; and (d) the date of any modification, waiver or amendment to the Merger Agreement effected without the Stockholder’s
consent that (i) decreases the amount or changes the form of consideration payable to all of the shareholders of the Company pursuant
to the terms of the Merger Agreement as in effect on the date of this Agreement or (ii) otherwise materially adversely affects the
interests of the Stockholder or the stockholders of the Company. For the sake of clarity, the Stockholder consents to the Amendment and
the Condor Merger Agreement. Nothing in this Section 8 shall relieve or otherwise limit the liability of any Party for any
breach of this Agreement incurred prior to such termination.

 

		9.	No Solicitation.

 

Subject to Section 10,
Stockholder shall not, and shall cause its Affiliates not to, and shall use its reasonable best efforts to cause its and their respective
officers, members, directors, partners, employees, accountants, financial and tax advisers and legal counsel (“Representatives”)
not to, directly or indirectly, take any of the actions listed in clauses (i) - (v) of Section 6.3(b) of the Merger
Agreement (without giving effect to any amendment or modification of such clauses after the date hereof). Stockholder shall, and shall
cause its Affiliates to, and shall use its reasonable best efforts to cause its and their Representatives to, immediately cease, and cause
to be terminated, any discussions or negotiations conducted before the date of this Agreement with any Person other than Parent with respect
to any inquiry, proposal or offer that constitutes, or would reasonably be expected to lead to, a Company Competing Proposal.

 

		10.	Fiduciary Duties.

 

Stockholder is entering into
this Agreement solely in its capacity as the record or Beneficial Owner of the Shares and nothing herein is intended to or shall limit
or affect any actions taken by any of Stockholder’s designees serving in his or her capacity as a director of the Company (or a
Subsidiary of the Company). The taking of any actions (or failures to act) by Stockholder’s designees serving as a director of the
Company (in such capacity as a director) shall not be deemed to constitute a breach of this Agreement.

 

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		11.	Further Assurances.

 

Stockholder agrees, from time
to time, and without additional consideration, to execute and deliver such additional proxies, documents and other instruments and to
take all such further action as Parent may reasonably request to consummate and make effective the transactions contemplated by this Agreement
and to not take or permit any of its Affiliates to take any action that would reasonably be likely to adversely affect or delay the ability
to perform Stockholder’s covenants and agreements under this Agreement.

 

		12.	Stop Transfer Instructions.

 

At all times commencing with
the execution and delivery of this Agreement and continuing until the Expiration Time, in furtherance of this Agreement, Stockholder hereby
authorizes and instructs the Company to instruct the Company’s transfer agent that there is a stop transfer order with respect to
all of the Shares (and that this Agreement places limits on the voting and transfer of the Shares), subject to the provisions hereof and
provided that any such stop transfer order and notice will immediately be withdrawn and terminated by the Company following the Expiration
Time.

 

		13.	Specific Performance.

 

The Parties agree that irreparable
damage, for which monetary damages would not be an adequate remedy, would occur in the event that any of the provisions of this Agreement
were not performed in accordance with their specific terms or were otherwise breached by the Parties. Prior to the Expiration Time, it
is accordingly agreed that the Parties shall be entitled to an injunction or injunctions, or any other appropriate form of specific performance
or equitable relief, to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof in any court of
competent jurisdiction, in each case in accordance with this Section 13,
this being in addition to any other remedy to which they are entitled under the terms of this Agreement at Law or in equity. Each Party
accordingly agrees not to raise any objections to the availability of the equitable remedy of specific performance to prevent or restrain
breaches or threatened breaches of, or to enforce compliance with, the covenants and obligations of such party under this Agreement, all
in accordance with the terms of this Section 13. Each Party further agrees
that no other Party or any other Person shall be required to obtain, furnish or post any bond or similar instrument in connection with
or as a condition to obtaining any remedy referred to in this Section 13,
and each Party irrevocably waives any right it may have to require the obtaining, furnishing or posting of any such bond or similar instrument.

 

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		14.	Entire Agreement.

 

This Agreement (together with
the Merger Agreement and any other documents and instruments executed pursuant hereto) supersedes all prior agreements, written or oral,
between the Parties hereto with respect to the subject matter hereof and contains the entire agreement between the Parties with respect
to the subject matter hereof. This Agreement may not be amended or supplemented, and no provisions hereof may be modified or waived, except
by an instrument in writing signed by both of the Parties hereto. No waiver of any provisions hereof by either Party shall be deemed a
waiver of any other provisions hereof by such Party, nor shall any such waiver be deemed a continuing waiver of any provision hereof by
such Party.

 

		15.	Extension; Waiver.

 

At any time prior to the Effective
Time, the Parties may, to the extent legally allowed:

 

(a)            extend
the time for the performance of any of the obligations or acts of the other Party hereunder;

 

(b)            waive
any inaccuracies in the representations and warranties of the other Party contained herein or in any document delivered pursuant hereto;
or

 

(c)            waive
compliance with any of the agreements or conditions of the other Party contained herein;

 

provided, that, in each case,
such waiver is made in writing and signed by the Party (or parties) against whom the waiver is to be effective.

 

Notwithstanding the foregoing,
no failure or delay by the Company or Parent in exercising any right hereunder shall operate as a waiver thereof nor shall any single
or partial exercise thereof preclude any other or further exercise of any other right hereunder. No agreement on the part of a Party to
any such extension or waiver shall be valid unless set forth in an instrument in writing signed on behalf of such Party. No waiver by
any of the Parties hereto of any default, misrepresentation or breach of representation, warranty, covenant or other agreement hereunder,
whether intentional or not, shall be deemed to extend to any prior or subsequent default, misrepresentation or breach or affect in any
way any rights arising by virtue of any prior or subsequent such occurrence.

 

		16.	Notices.

 

All notices, requests, consents,
claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed to have been given: (a) if delivered
in person; (b) if transmitted by facsimile (but only upon confirmation of transmission by the transmitting equipment); (c) if
transmitted by electronic mail (“e-mail”) (upon confirmation of receipt; provided, that each notice party shall
use reasonable best efforts to confirm receipt of any such email correspondence promptly upon receipt of such request); or (d) if
transmitted by national overnight courier. Such communications must be sent to the respective Parties at the following addresses (or at
such other address for a Party as shall be specified in a notice given in accordance with this Section 16):

 

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If to Parent or Merger Sub,
to:

 

Bonanza Creek Energy, Inc.

410 17th St.

Denver, CO 80202

Attention: Skip Marter, General Counsel

E-mail:

 

with a required copy to (which copy shall not constitute
notice):

 

Vinson & Elkins LLP

1001 Fannin St.

Houston, TX 77002

Attention: Stephen M. Gill

E-mail: 

 

and

 

Vinson & Elkins LLP

1114 Avenue of the Americas, 32nd Floor

New York, NY 10036

Attention: Shelley A. Barber

E-mail: 

 

If to the Company, to:

 

Extraction Oil & Gas, Inc.

370 17th Street, Suite 5200

Denver, CO 80202

Attention: Eric Christ

E-mail: 

 

with a required copy to (which copy shall not
constitute notice):

 

Kirkland & Ellis LLP

609 Main Street, Suite 4700

Houston, Texas 77002

Attention:          Doug
Bacon, P.C.

    Alex Rose

E-mail:                

    

If to Stockholder, to:

 

Kimmeridge Energy Management Company, LLC

412 West 15th Street, 11th Floor

New York, New York 10011

Attention: Tamar Goldstein, Esq.

E-mail: 

 

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with a required copy to (which copy shall not
constitute notice):

 

Schulte Roth & Zabel LLP

919 Third Avenue

New York, NY 10022

Attention:          Eleazer
Klein, Esq.

    Adriana Schwartz, Esq.

E-mail:                

    

		17.	Miscellaneous.

 

(a)            Governing
Law. THIS AGREEMENT, AND ALL CLAIMS OR CAUSES OF ACTION (WHETHER IN CONTRACT OR TORT) THAT MAY BE BASED UPON, ARISE OUT
OF RELATE TO THIS AGREEMENT, OR THE NEGOTIATION, EXECUTION OR PERFORMANCE OF THIS AGREEMENT, SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF.

 

(b)            Submission
to Jurisdiction. THE PARTIES IRREVOCABLY SUBMIT TO THE JURISDICTION OF THE COURT OF CHANCERY OF THE STATE OF DELAWARE OR, IF
THE COURT OF CHANCERY OF THE STATE OF DELAWARE OR THE DELAWARE SUPREME COURT DETERMINES THAT, NOTWITHSTANDING SECTION 111 OF THE
DELAWARE GENERAL CORPORATIONS LAW, THE COURT OF CHANCERY DOES NOT HAVE OR SHOULD NOT EXERCISE SUBJECT MATTER JURISDICTION OVER SUCH MATTER,
THE SUPERIOR COURT OF THE STATE OF DELAWARE AND THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA LOCATED IN THE STATE OF DELAWARE SOLELY
IN CONNECTION WITH ANY DISPUTE THAT ARISES IN RESPECT OF THE INTERPRETATION AND ENFORCEMENT OF THE PROVISIONS OF THIS AGREEMENT AND THE
DOCUMENTS REFERRED TO IN THIS AGREEMENT OR IN RESPECT OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, AND HEREBY WAIVE, AND AGREE
NOT TO ASSERT, AS A DEFENSE IN ANY ACTION, SUIT OR PROCEEDING FOR INTERPRETATION OR ENFORCEMENT HEREOF OR ANY SUCH DOCUMENT THAT IT IS
NOT SUBJECT THERETO OR THAT SUCH ACTION, SUIT OR PROCEEDING MAY NOT BE BROUGHT OR IS NOT MAINTAINABLE IN SAID COURTS OR THAT VENUE
THEREOF MAY NOT BE APPROPRIATE OR THAT THIS AGREEMENT OR ANY SUCH DOCUMENT MAY NOT BE ENFORCED IN OR BY SUCH COURTS, AND THE
PARTIES IRREVOCABLY AGREE THAT ALL CLAIMS WITH RESPECT TO SUCH ACTION, SUIT OR PROCEEDING SHALL BE HEARD AND DETERMINED EXCLUSIVELY BY
SUCH A DELAWARE STATE OR FEDERAL COURT. THE PARTIES HEREBY CONSENT TO AND GRANT ANY SUCH COURT JURISDICTION OVER THE PERSON OF SUCH PARTIES
AND OVER THE SUBJECT MATTER OF SUCH DISPUTE AND AGREE THAT MAILING OF PROCESS OR OTHER PAPERS IN CONNECTION WITH SUCH ACTION, SUIT OR
PROCEEDING IN THE MANNER PROVIDED IN SECTION 15 OR IN SUCH OTHER MANNER AS MAY BE PERMITTED BY LAW SHALL BE VALID AND
SUFFICIENT SERVICE THEREOF.

 

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(c)            Waiver
of Jury Trial. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE
COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE
TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (I) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER
PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER; (II) SUCH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THE FOREGOING WAIVER; (III) SUCH PARTY MAKES THE
FOREGOING WAIVER VOLUNTARILY AND (IV) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL
WAIVER AND CERTIFICATIONS IN THIS SECTION 17(c).

 

(d)            Expenses.
All costs and expenses incurred in connection with this Agreement shall be paid by the Party incurring such cost or expense, whether
or not the Merger is consummated.

 

(e)            Severability.
If any term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or
unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision
in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal, or unenforceable, the Parties
shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in a
mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest
extent possible.

 

(f)             Counterparts.
This Agreement may be executed in one or more counterparts, including via facsimile or email in “portable document format”
(“.pdf”) form transmission, each of which shall be deemed to be an original but all of which together shall constitute
one and the same agreement and shall become effective when two or more counterparts have been signed by each of the Parties and delivered
to the other Parties, it being understood that all Parties need not sign the same counterpart.

 

(g)            Interpretation.
The Parties have participated jointly in negotiating and drafting this Agreement. In the event that an ambiguity or a question of intent
or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties, and no presumption or burden of proof
shall arise favoring or disfavoring any Party by virtue of the authorship of any provision of this Agreement. When a reference is made
in this Agreement to Sections, such reference shall be to n Section of this Agreement unless otherwise indicated. The headings contained
in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever
the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to
be followed by the words “without limitation.” References to “the date hereof” shall mean the date of this Agreement.
As used in this Agreement, the “knowledge” of the Stockholder means the actual knowledge of any officer of Holder after due
inquiry.

 

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(h)            Assignment.
Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of the parties hereto (whether
by operation of law or otherwise) without the prior written consent of the other Parties. Any purported assignment in contravention hereof
shall be null and void. Subject to the preceding sentence and except as set forth in Section 5,
this Agreement will be binding upon, inure to the benefit of and be enforceable by the Parties and their respective successors and permitted
assigns.

 

(i)             No
Third-Party Beneficiaries; Non-Recourse. Except for the provisions of Sections 3, 5, 9 and 13, of which CPPIB Crestone Peak is an
express third-party beneficiary, nothing in this Agreement, express or implied, is intended to or shall confer upon any Person other than
the Parties and their respective successors and permitted assigns any legal or equitable right, benefit, or remedy of any nature under
or by reason of this Agreement.

 

(j)             No
Ownership Interest. Nothing contained in this Agreement shall be deemed to vest in Parent any direct or indirect ownership or incidence
of ownership of or with respect to the Shares. All rights, ownership and economic benefits of and relating to the Shares shall remain
vested in and belong to Stockholder, and Parent shall not have any authority to manage, direct, restrict, regulate, govern or administer
any of the policies or operations of the Company or exercise any power or authority to direct Stockholder in the voting or disposition
of any Shares, except as otherwise expressly provided herein.

 

(k)            No
Partnership, Agency or Joint Venture. This Agreement is intended to create, and creates, a contractual relationship and is not intended
to create, and does not create, any agency, partnership, joint venture, any like relationship between the Parties or a presumption that
the Parties are in any way acting in concert or as a group with respect to the obligations or the transactions contemplated by this Agreement.

 

(l)             Disclosure.
Stockholder consents to and authorizes the publication and disclosure by the Company and Parent of Stockholder’s identity and holding
of Shares, and the terms of this Agreement (including, for avoidance of doubt, the disclosure of this Agreement), in any press release,
the Registration Statement, including the Joint Proxy Statement, as applicable, and any other disclosure document required in connection
with the Merger Agreement, the Merger and the transactions contemplated by the Merger Agreement.

 

(m)            Amendment.
This Agreement may not be amended, modified or supplemented in any manner, whether by course of conduct or otherwise, except by an instrument
in writing specifically designated as an amendment hereto, signed on behalf of each of the Parties and, in the case of an amendment to
Section 3, 5 or 9, CPPIB Crestone Peak.

 

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(n)            Reliance.
Stockholder understands and acknowledges that Parent, Merger Sub and the Company are entering into the Merger Agreement in reliance upon
Stockholder’s execution and delivery of this Agreement.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the Parties
hereto have executed and delivered this Agreement as of the date first written above.

 

	 	BONANZA CREEK ENERGY, INC.
	 	 	 
	 	By	/s/ Eric T. Greager
	 	 	Name: Eric T. Greager
	 	 	Title: President and Chief Executive Officer

 

	 	EXTRACTION OIL & GAS, INC.
	 	 	 
	 	By	/s/ Tom Tyree
	 	 	Name: Tom Tyree
	 	 	Title: Chief Executive Officer

 

	 	KIMMERIDGE ENERGY MANAGEMENT COMPANY, LLC
	 	 	 
	 	By	/s/
Benjamin Dell
	 	 	Name: Benjamin Dell
	 	 	Title: Managing Partner

 

    13Exhibit 10.1

 

Simulations
Plus, Inc.

2021 EQUITY INCENTIVE PLAN

Plan Adopted by the Board: April 9, 2021

Plan Approved by the Shareholders: ________, 2021

 

Termination
Date: April 9, 2031

 

1.     
General.

 

(a)              
Purposes. The purposes of the Plan are as follows:

 

(i)               
To provide additional incentive for selected Employees, Directors and Consultants to further the growth, development and financial
success of the Company by providing a means by which such persons can personally benefit through the ownership of capital stock of the
Company; and

 

(ii)             
To enable the Company to secure and retain key Employees, Directors and Consultants considered important to the long-term success
of the Company by offering such persons an opportunity to own capital stock of the Company.

 

(b)             
Eligible Stock Award Recipients. The persons eligible to receive Stock Awards under the Plan are the Employees, Directors
and Consultants of the Company and its Affiliates.

 

(c)             
Available Stock Awards. The following Stock Awards are available under the Plan: (i) Incentive Stock Options; (ii)
Nonstatutory Stock Options; (iii) Restricted Stock awards, (iv) Restricted Stock Units; (v) Stock Bonus awards; and (vi) Performance-Based
Awards.

 

2.     
Definitions.

 

(a)             
“Administrator” means the entity that conducts the general administration of the Plan as provided herein.
The term “Administrator” shall refer to the Board unless the Board has delegated administration to a Committee as provided
in Article 3.

 

(b)             
“Affiliate” means:

 

(i)              
with respect to Incentive Stock Options, any “parent corporation” or “subsidiary corporation” of the Company,
whether now existing or hereafter created or acquired, as those terms are defined in Sections 424(e) and 424(f) of the Code, respectively;
and

 

(ii)             
with respect to Stock Awards other than Incentive Stock Options, any entity described in paragraph (a) of this Section 2(b), plus
any other corporation, limited liability company, partnership or joint venture, whether now existing or hereafter created or acquired,
with respect to which the Company beneficially owns more than fifty percent (50%) of: (1) the total combined voting power of all outstanding
voting securities or (2) the capital or profits interests of a limited liability company, partnership or joint venture.

 

(c)              
“Award Shares” means the shares of Common Stock of the Company issued or issuable pursuant to a Stock Award, including
Option Shares issued or issuable pursuant to an Option.

 

 

 

 

    	 	1	 

     

    

 

(d)             
“Board” means the Board of Directors of the Company.

 

(e)              
“Cause” shall mean, unless the applicable Stock Award Agreement states otherwise: (a) the Company or an
Affiliate having “cause” to terminate a Participant’s employment or service, as defined in any employment or consulting
agreement or similar services agreement between the Participant and the Company or an Affiliate in effect at the time of such termination,
or (b) in the absence of any such employment, consulting or similar services agreement (or the absence of any definition of “Cause”
contained therein), “Cause” shall mean, as determined by the Administrator, the Participant’s (i) act(s) of fraud or
dishonesty, (ii) knowing and material failure to comply with applicable laws or regulations or satisfactorily perform Participant’s
services, (iii) insubordination, or (iv) drug or alcohol abuse.

 

(f)               
“Change in Control” shall mean:

 

(i)               
The direct or indirect sale or transfer, in a single transaction or a series of related transactions, by the shareholders of the
Company of voting securities, in which the holders of the outstanding voting securities of the Company immediately prior to such transaction
or series of transactions hold, as a result of holding Company securities prior to such transaction, in the aggregate, securities possessing
less than fifty percent (50%) of the total combined voting power all outstanding voting securities of the Company or of the acquiring
entity immediately after such transaction or series of related transactions;

 

(ii)             
A merger or consolidation in which the Company is not the surviving entity, except for a transaction in which the holders of the
outstanding voting securities of the Company immediately prior to such merger or consolidation hold as a result of holding Company securities
prior to such transaction, in the aggregate, securities possessing more than fifty percent (50%) of the total combined voting power of
all outstanding voting securities of the surviving entity (or the parent of the surviving entity) immediately after such merger or consolidation;

 

(iii)           
A reverse merger in which the Company is the surviving entity but in which the holders of the outstanding voting securities of
the Company immediately prior to such merger hold as a result of holding Company securities prior to such transaction, in the aggregate,
securities possessing less than fifty percent (50%) of the total combined voting power of all outstanding voting securities of the Company
or of the acquiring entity immediately after such merger;

 

(iv)           
The sale, transfer or other disposition (in one transaction or a series of related transactions) of all or substantially all of
the assets of the Company, except for a transaction in which the holders of the outstanding voting securities of the Company immediately
prior to such transaction(s) receive as a distribution with respect to securities of the Company, in the aggregate, securities possessing
more than fifty percent (50%) of the total combined voting power of all outstanding voting securities of the acquiring entity immediately
after such transaction(s); or

 

(v)             
Any time individuals who, on the date this Plan is adopted by the Board, are members of the Board (the “Incumbent Board”)
cease for any reason to constitute at least a majority of the members of the Board; provided, however, that if the appointment
or election (or nomination for election) of any new Board member was approved or recommended by a majority vote of the members of the
Incumbent Board then still in office, such new member shall, for purposes of this Plan, be considered as a member of the Incumbent Board.

 

(g)              
“Code” means the Internal Revenue Code of 1986, as amended.

 

(h)             
“Committee” means a committee appointed by the Board in accordance with Section 3(c).

 

(i)               
“Common Stock” means the shares of common stock of the Company.

 

 

 

 

    	 	2	 

     

    

 

(j)               
“Company” means Simulations Plus, Inc., a California corporation.

 

(k)              
“Consultant” means any consultant or adviser if:

 

(a)               
The consultant or adviser renders bona fide services to the Company or any Affiliate;

 

(b)              
The services rendered by the consultant or adviser are not in connection with the offer or sale of securities in a capital-raising
transaction and do not directly or indirectly promote or maintain a market for the Company’s securities; and

 

(i)                
The consultant or adviser is a natural person who has contracted directly with the Company or any Affiliate to render such services.

 

(l)              
“Director” means a member of the Board.

 

(m)           
“Disability” means total and permanent disability as defined in Section 22(e)(3) of the Code and as interpreted
by the Administrator in each case.

 

(n)             
“Dividend Equivalents” shall have the meaning set forth in Section 7(c)(iii).

 

(o)              
“Effective Date” shall have the meaning given in Section 16 herein.

 

(p)             
“Employee” means any person, including officers and Directors, providing services as an employee to the
Company or any Affiliate. Neither service as a Director nor receipt of a director’s fee shall be sufficient to make a Director an
“Employee.”

 

(q)             
“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time.

 

(r)              
“Fair Market Value” means, as of any date, the value of the Common Stock of the Company determined as follows:

 

(i)              
If the Common Stock is then listed or admitted to trading on a Nasdaq market system or a stock exchange which reports closing sale
prices, the Fair Market Value shall be the closing sale price on the date of valuation on such Nasdaq market system or principal stock
exchange on which the Common Stock is then listed or admitted to trading, or, if no closing sale price is quoted on such day, then the
Fair Market Value shall be the closing sale price of the Common Stock on such Nasdaq market system or such exchange on the next preceding
day for which a closing sale price is reported;

 

(ii)             
If the Common Stock is not then listed or admitted to trading on a Nasdaq market system or a stock exchange which reports closing
sale prices, the Fair Market Value shall be the average of the closing bid and asked prices of the Common Stock in the over-the-counter
market on the date of valuation; or

 

(iii)           
If neither (i) nor (ii) is applicable as of the date of valuation, then the Fair Market Value shall be determined by the Administrator
in good faith using any reasonable method of valuation, which determination shall be conclusive and binding on all interested parties.

 

(s)               
“Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the meaning
of Section 422 of the Code and the regulations promulgated thereunder.

 

 

 

 

    	 	3	 

     

    

 

(t)              
“Non-Employee Director” means a member of the Board who qualifies as a “Non-Employee Director”
as defined in Rule 16b-3(b)(3) of the Exchange Act, or any successor rule.

 

(u)             
“Nonstatutory Stock Option” means an Option not intended to qualify as an Incentive Stock Option.

 

(v)              
“Officer” means any person who is an officer of the Company within the meaning of Section 16 of the
Exchange Act and the rules and regulations promulgated thereunder.

 

(w)            
“Option” means a stock option granted pursuant to the Plan.

 

(x)              
“Option Agreement” means a written or electronic agreement between the Company and an Optionee evidencing
the terms and conditions of an individual Option grant. Each Option Agreement shall be subject to the terms and conditions of the Plan
and any rules and regulations adopted by the Administrator and incorporated therein.

 

(y)              
“Optionee” means the Participant to whom an Option is granted or, if applicable, such other person who holds
an outstanding Option.

 

(z)              
“Option Shares” means the shares of Common Stock of the Company issued or issuable pursuant to the exercise
of an Option.

 

(aa)           
“Participant” means an Optionee or any other person to whom a Stock Award is granted pursuant to the Plan
or, if applicable, such other person who holds an outstanding Stock Award.

 

(bb)           
“Performance-Based Award” means a Stock Award subject to the achievement of a Performance Goal or Performance
Goals, as set forth in the applicable Stock Award Agreement.

 

(cc)            
“Performance Criteria” means the criteria that the Administrator selects for purposes of establishing the
Performance Goal or Performance Goals for a Participant for a Performance Period. The Performance Criteria that will be used to establish
Performance Goals are limited to the following: net earnings (either before or after interest, taxes, depreciation and amortization),
sales or revenue, net income (either before or after taxes), operating earnings, cash flow (including, but not limited to, operating cash
flow and free cash flow), return on net assets, return on shareholders’ equity, return on sales, gross or net profit margin, working
capital, earnings per share and price per share of Common Stock, the achievement of certain milestones, customer retention rates, licensing,
partnership or other strategic transactions, obtaining a specified level of financing for the Company, as determined by the Administrator,
including the issuance of securities, or the achievement of one or more corporate, divisional or individual scientific or inventive measures.
Any of the criteria identified above may be measured either in absolute terms or as compared to any incremental increase or as compared
to results of a peer group. The Administrator shall define in an objective fashion the manner of calculating the Performance Criteria
it selects to use for such Performance Period for such Participant.

 

(dd)         
“Performance Goals” means, for a Performance Period, the goals established in writing by the Administrator
for the Performance Period based upon the Performance Criteria. Depending on the Performance Criteria used to establish such Performance
Goals, the Performance Goals may be expressed in terms of overall Company performance or the performance of an Affiliate, division or
other operational unit, or an individual. The Administrator, in its discretion, may adjust or modify the calculation of Performance Goals
for such Performance Period in order to prevent the dilution or enlargement of the rights of Participants (i) in the event of, or in anticipation
of, any unusual or extraordinary corporate item, transaction, event, or development, or (ii) in recognition of, or in anticipation of,
any other unusual or nonrecurring events affecting the Company, or the financial statements of the Company, or in response to, or in anticipation
of, changes in applicable laws, regulations, accounting principles, or business conditions.

 

(ee)           
“Performance Period” means the one or more periods of time, which may be of varying and overlapping durations,
as the Administrator may select, over which the attainment of one or more Performance Goals will be measured for the purpose of determining
a Participant’s right to, and the payment of, a Performance-Based Award.

 

 

 

 

    	 	4	 

     

    

 

(ff)            
“Plan” means this 2021 Equity Incentive Plan.

 

(gg)          
“Restricted Stock” means Common Stock awarded to a Participant pursuant to Section 7(b) that is subject
to certain restrictions and may be subject to risk of forfeiture or repurchase.

 

(hh)         
“Restricted Stock Award Agreement” means a written or electronic agreement between the Company and a Participant
evidencing the terms and conditions of a Restricted Stock award. Each Restricted Stock Award Agreement shall be subject to the terms and
conditions of the Plan and any rules and regulations adopted by the Administrator and incorporated therein.

 

(ii)             
“Restricted Stock Unit” means a Stock Award that is valued by reference to a share of Common Stock, which
value may be paid to a Participant by delivery of such property as the Administrator shall determine, including, without limitation, cash
or shares of Common Stock, or any combination thereof, and that has such restrictions as the Administrator, in its sole discretion, may
impose, including, without limitation, any restriction on the right to retain such Stock Awards, and, subject to Section 7(c)(iii), to
receive any cash Dividend Equivalents with respect to such Stock Awards, which restrictions may lapse separately or in combination at
such time or times, in installments or otherwise, as the Administrator may deem appropriate.

 

(jj)            
“Securities Act” means the Securities Act of 1933, as amended.

 

(kk)          
“Stock Award” means any right granted under the Plan, including an Option, a right to acquire Restricted Stock,
a Restricted Stock Unit, a Stock Bonus, or a Performance-Based Award.

 

(ll)             
“Stock Award Agreement” means any written or electronic agreement, including an Option Agreement, Stock Bonus Agreement,
or Restricted Stock Award Agreement, between the Company and a holder of a Stock Award evidencing the terms and conditions of an individual
Stock Award grant. Each Stock Award Agreement shall be subject to the terms and conditions of the Plan and any additional rules and regulations
adopted by the Administrator and incorporated therein.

 

(mm)       
“Stock Bonus” means a payment in the form of shares of Common Stock, or as part of any bonus, deferred compensation
or other arrangement, made in lieu of all or any portion of the compensation, granted pursuant to Section 7(a).

 

(nn)          
“Stock Bonus Agreement” means a written or electronic agreement between the Company and a Participant evidencing
the terms and conditions of a Stock Bonus. Each Stock Bonus Agreement shall be subject to the terms and conditions of the Plan and any
rules and regulations adopted by the Administrator and incorporated therein.

 

(oo)          
“Ten Percent Shareholder” means a person who owns (or is deemed to own pursuant to Section 424(d) of the Code)
stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of any of its
Affiliates.

 

(pp)         
“Termination of Service” means:

 

(i)                
With respect to Stock Awards granted to a Participant in his or her capacity as an Employee, the time when the employer-employee
relationship between the Participant and the Company (or an Affiliate) is terminated for any reason, including, without limitation a termination
by resignation, discharge, death or retirement;

 

 

 

 

    	 	5	 

     

    

 

(ii)            
With respect to Stock Awards granted to a Participant in his or her capacity as a Director, the time when the Participant ceases
to be a Director for any reason, including without limitation a cessation by resignation, removal, failure to be reelected, death or retirement,
but excluding cessations where there is a simultaneous or continuing employment of the former Director by the Company (or an Affiliate)
and the Administrator expressly deems such cessation not to be a Termination of Service;

 

(iii)           
With respect to Stock Awards granted to a Participant in his or her capacity as a Consultant, the time when the contractual relationship
between the Participant and the Company (or an Affiliate) is terminated for any reason; and

 

(iv)            
With respect to Stock Awards granted to a Participant in his or her capacity as an Employee, Director or Consultant of an Affiliate,
when such entity ceases to qualify as an Affiliate under this Plan, unless earlier terminated as set forth above.

 

The Administrator, in its
sole and absolute discretion, shall determine the effect of all other matters and issues relating to a Termination of Service.

 

3.     
Administration.

 

(a)             
Administration by Board. The Plan shall be administered by the Administrator unless and until the Board delegates administration
to a Committee or an Officer, as provided in Section 3(c) below.

 

(b)             
Powers of the Administrator. The Administrator shall have the power, except as otherwise provided herein:

 

(i)               
To determine from time to time (A) which of the persons eligible under the Plan shall be granted Stock Awards; (B) when and how
the Stock Awards shall be granted; (C) what type or combination of types of Stock Awards will be granted; (D) the terms and conditions
of each Stock Award granted (which need not be identical), including, without limitation, the transferability or repurchase of such Stock
Awards or Award Shares issuable thereunder, as applicable, and the circumstances under which Stock Awards become exercisable or vested
or are forfeited or expire, which terms may but need not be conditioned upon the passage of time, continued employment, the satisfaction
of performance criteria, the occurrence of certain events, or other factors; and (E) the number of Award Shares subject to a Stock Award
that shall be granted to a Participant.

 

(ii)             
To construe and interpret the Plan and Stock Awards granted under it, and to make exceptions to any such provisions in good faith
and for the benefit of the Company, and to establish, amend and revoke rules and regulations for the Plan’s administration. The
Administrator, in the exercise of its power, may correct any defect, omission or inconsistency in the Plan or in any Stock Award Agreement
in a manner and to the extent it shall deem necessary or expedient to make the Plan fully effective.

 

(iii)           
To settle all controversies regarding the Plan and Stock Awards granted under it.

 

(iv)            
To accelerate the time at which a Stock Award may first be exercised or the time during which a Stock Award or any part thereof
will vest in accordance with the Plan (subject to Section 4(d) below), notwithstanding the provisions in the Stock Award stating the time
at which it may first be exercised or the time during which it will vest.

 

(v)             
To suspend or terminate the Plan at any time. Suspension or termination of the Plan shall not impair rights and obligations under
any Stock Award granted while the Plan is in effect except with the written consent of the affected Participant.

 

(vi)            
To submit any amendment to the Plan for shareholder approval.

 

 

 

 

    	 	6	 

     

    

 

(vii)         
To amend the Plan in any respect the Administrator deems necessary or advisable to provide Participants with the maximum benefits
provided or to be provided under the provisions of the Code and the regulations promulgated thereunder relating to Incentive Stock Options
or to bring the Plan or Incentive Stock Options granted under it into compliance therewith.

 

(viii)        
To amend the terms of any one or more Stock Awards, including, but not limited to, amendments to provide terms more favorable than
previously provided in the Stock Award Agreement, subject to any specified limits in the Plan that are not subject to Administrator discretion;
provided, however, that the rights under any Stock Award shall not be impaired by any such amendment unless (a) the Company requests
the consent of the affected Participant, and (b) such Participant consents in writing. Notwithstanding the foregoing, subject to the limitations
of applicable law, if any, and without the affected Participant’s consent, the Administrator may amend the terms of any one or more
Stock Awards if necessary to maintain the qualified status of the Stock Award as an Incentive Stock Option or to bring the Stock Award
into compliance with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder.

 

(ix)           
To amend the Plan as provided in Section 14.

 

(x)            
To prescribe and amend the terms of the agreements or other documents evidencing Stock Awards made under this Plan (which need
not be identical).

 

(xi)           
To place such restrictions on the sale or other disposition of Award Shares as may be deemed appropriate by the Administrator.

 

(xii)          
To determine whether, and the extent to which, adjustments are required pursuant to Section 11.

 

(xiii)        
Generally, to exercise such powers and to perform such acts as the Administrator deems necessary or expedient to promote the best
interests of the Company.

 

(c)              
Delegation to a Committee.

 

(i)               
General. The Board may delegate administration of the Plan to a committee of the Board composed of not fewer than
two (2) members (the “Committee”). If administration is delegated to a Committee, the Committee shall have, in connection
with the administration of the Plan, the powers theretofore possessed by the Board (and references in the Plan to the Administrator shall
thereafter be deemed to be references to the Committee), subject, however, to such resolutions, not inconsistent with the provisions of
the Plan, as may be adopted from time to time by the Board. The Board may abolish the Committee at any time and revest in the Board the
administration of the Plan. Appointment of Committee members shall be effective upon acceptance of appointment. In its sole discretion,
the Board may at any time and from time to time exercise any and all rights and duties of the Administrator under the Plan except with
respect to matters which under Rule 16b-3 under the Exchange Act are required to be determined in the sole discretion of the Committee.
Committee members may resign at any time by delivering written notice to the Board. Vacancies in the Committee may only be filled by the
Board.

 

(ii)             
Rule 16b-3 Compliance.  In the discretion of the Board, the Committee may consist solely of two or more Non-Employee
Directors, in accordance with Rule 16b-3 of the Exchange Act.  In addition, the Board or the Committee, in its discretion, may delegate
to a committee of one or more members of the Board who need not be Non-Employee Directors the authority to grant Stock Awards to eligible
persons who are not then subject to Section 16 of the Exchange Act.

 

(d)             
Effect of Change in Status. The Administrator shall have the absolute discretion to determine the effect upon
a Stock Award, and upon an individual’s status as an Employee, Consultant or Director under the Plan, including whether a Participant
shall be deemed to have experienced a Termination of Service or other change in status, and upon the vesting, expiration or forfeiture
of a Stock Award or Award Shares issuable in respect thereof, in the case of (i) a Termination of Service for cause, (ii) any leave of
absence approved by the Company or an Affiliate, (iii) any transfer between the Company and any Affiliate or between any Affiliates, (iii)
any change in the Participant’s status from an Employee to a Consultant or member of the Administrator of Directors, or vice versa,
and (v) any Employee who becomes employed by any partnership, joint venture, corporation or other entity not meeting the requirements
of an Affiliate.

 

 

 

 

    	 	7	 

     

    

 

(e)              
Determinations of the Administrator. All decisions, determinations and interpretations by the Administrator regarding
this Plan shall be final and binding on all Participants or other persons claiming rights under the Plan or any Stock Award. The Administrator
shall consider such factors as it deems relevant to making such decisions, determinations and interpretations including, without limitation,
the recommendations or advice of any Director, Officer or Employee of the Company and such attorneys, consultants and accountants as it
may select. A Participant or other holder of a Stock Award may contest a decision or action by the Administrator with respect to such
person or Stock Award only on the grounds that such decision or action was arbitrary or capricious or was unlawful, and any review of
such decision or action shall be limited to determining whether the Administrator’s decision or action was arbitrary or capricious
or was unlawful.

 

(f)               
Arbitration. Any dispute or claim concerning any Stock Awards granted (or not granted) pursuant to the Plan or any disputes
or claims relating to or arising out of the Plan shall be fully, finally and exclusively resolved by binding and confidential arbitration
conducted pursuant to the rules of Judicial Arbitration and Mediation Services, Inc. (“JAMS”) in the County of San
Diego, California. In addition to any other relief, the arbitrator may award to the prevailing party recovery of its attorneys’
fees and costs. By accepting a Stock Award, Participants and the Company waive their respective rights to have any such disputes or claims
tried by a judge or jury.

 

4.     
Shares Subject to the Plan; Overall Limitations.

 

(a)              
Shares Subject to the Plan. Subject to the provisions of Section 10 relating to adjustments upon changes in stock, the
Award Shares that may be issued pursuant to Stock Awards shall not exceed in the aggregate one million three hundred thousand (1,300,000)
shares of the Company’s Common Stock. Of such amount, one million three hundred thousand (1,300,000) Award Shares may be issued
pursuant to Incentive Stock Options.

 

(b)             
Reversion of Award Shares to Plan. 

 

(i)              
Award Shares Available for Subsequent Issuance. Award Shares subject to Stock Awards, and Award Shares issued under
this Plan under any Stock Award, will again be available for grant and issuance in connection with subsequent Stock Awards under this
Plan to the extent such Award Shares: (a) are subject to issuance upon exercise of an Option or settlement of a Restricted Stock
Unit granted under this Plan but which cease to be subject to the Option or Restricted Stock Unit by expiration, termination, cancellation,
or forfeiture prior to the issuance of such Award Shares; or (b) are subject to Stock Awards granted under this Plan that are repurchased
by the Company at the original issue price.

 

(ii)             
Award Shares Not Available for Subsequent Issuance. Award Shares used to pay the exercise price of an Option, Award
Shares withheld to satisfy the tax withholding obligations related to a Stock Award, or Award Shares repurchased by the Company for any
reason other than Shares repurchased at their original issue price, in each case, will not become available for future grant or sale under
this Plan.

 

(c)              
Dividends and Dividend Equivalents. The maximum number of Award Shares that may be issued under the Plan in Section
4(a) above shall not be affected by the payment of dividends or Dividend Equivalents in cash or in shares of Common Stock in connection
with outstanding Stock Awards.

 

(d)             
Vesting and Acceleration Restriction. Awards shall not provide for any vesting prior to at least twelve (12) months
from the date of grant. In addition, the Administrator will not permit the discretionary acceleration of vesting of Awards. Notwithstanding
the foregoing, the Administrator may permit (i) acceleration of vesting of Awards in the event of the Participant’s death or Disability,
or in connection with a Change in Control as provided in Section 11(b) below, and (ii) the vesting of Stock Awards on any basis prior
to twelve (12) months from grant representing up to an aggregate of five percent (5%) of the Award Shares reserved and available for grant
under the Plan.

 

5.     
Eligibility.

 

(a)              
General. Incentive Stock Options may be granted only to Employees; all other Stock Awards may be granted only to Employees,
Directors and Consultants. In the event a Participant is both an Employee and a Director, or a Participant is both a Director and a Consultant,
the Stock Award Agreement shall specify the capacity in which the Participant is granted the Stock Award; provided, however, if
the Stock Award Agreement is silent as to such capacity, the Stock Award shall be deemed to be granted to the Participant as an Employee
or as a Consultant, as applicable.

 

 

 

 

    	 	8	 

     

    

 

(b)             
Ten Percent Shareholders. A Ten Percent Shareholder shall not be granted an Incentive Stock Option unless the exercise
price of such Option is at least one hundred ten percent (110%) of the Fair Market Value of the Common Stock at the date of grant and
the Option is not exercisable after the expiration of five (5) years from the date of grant.

 

6.     
Option Agreement Provisions.

 

Each Option shall be granted
pursuant to a written Option Agreement, signed by an Officer of the Company and by the Optionee, which shall be in such form and shall
contain such terms and conditions as the Administrator shall deem appropriate. The provisions of separate Option Agreements need not be
identical, but each Option Agreement shall include (through incorporation of the provisions hereof by reference in the Option Agreement
or otherwise) the substance of each of the following provisions (except to the extent that any such provision indicates it is permissible
rather than mandatory):

 

(a)              
Term. No Incentive Stock Option shall be exercisable after the expiration of ten (10) years from the date of its
grant or such shorter period specified in the Option Agreement; provided, however, that an Incentive Stock Option granted to a
Ten Percent Shareholder shall be subject to the provisions of Section 5(b).

 

(b)             
Exercise Price of an Option. Subject to the provisions of Section 5(b) regarding Incentive Stock Options granted to
Ten Percent Shareholders, the exercise price of each Incentive Stock Option shall be not less than the Fair Market Value of the Common
Stock subject to the Option on the date the Option is granted. The Administrator shall determine the exercise price of each Nonstatutory
Stock Option. Notwithstanding the foregoing, an Incentive Stock Option may be granted with an exercise price lower than one hundred percent
(100%) of the Fair Market Value of the Common Stock subject to the Option if such Incentive Stock Option is granted pursuant to an assumption
of or substitution for another option in a manner consistent with the provisions of Section 424(a) of the Code.

 

(c)              
Consideration. The purchase price of Common Stock acquired pursuant to the exercise of an Option shall be paid, to the
extent permitted by applicable law and as determined by the Administrator in its sole discretion, by any combination of the methods of
payment set forth below. The Administrator shall have the authority to grant Options that do not permit all of the following methods of
payment (or otherwise restrict the ability to use certain methods) and to grant Options that require the consent of the Company to utilize
a particular method of payment. The methods of payment permitted by this Section 6(c) are:

 

(i)               
by cash or check;

 

(ii)             
pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Administrator that, prior to the issuance
of Common Stock, results in either the receipt of cash (or check) by the Company or the receipt of irrevocable instructions to pay the
aggregate exercise price to the Company from the sales proceeds;

 

(iii)            
by delivery to the Company (either by actual delivery or attestation) of shares of Common Stock;

 

(iv)            
by a “cashless exercise” arrangement pursuant to which the Company will reduce the number of shares of Common Stock
issued upon exercise by the largest whole number of shares with a Fair Market Value that does not exceed the aggregate exercise price;
provided, however, that the Company shall accept a cash or other payment from the Participant to the extent of any remaining balance
of the aggregate exercise price not satisfied by such reduction in the number of whole shares to be issued; provided, further, however,
that shares of Common Stock will no longer be outstanding under an Option and will not be exercisable thereafter to the extent that
(A) shares are used to pay the exercise price pursuant to the “cashless exercise,” (B) shares are delivered to the Participant
as a result of such exercise, and (C) shares are withheld to satisfy tax withholding obligations; or

 

(v)              
in any other form of legal consideration that may be acceptable to the Administrator.

 

 

 

 

    	 	9	 

     

    

 

(d)             
Transferability. The following restrictions on the transferability of Options shall apply:

 

(i)              
Restrictions on Transfer. An Option shall not be transferable except by will or by the laws of descent and distribution
and shall be exercisable during the lifetime of the Optionee only by the Optionee; provided, however, that the Administrator may, in its
sole discretion, permit transfer of the Option to a revocable trust. Notwithstanding the foregoing, however, an Incentive Stock Option
shall not be transferable other than by will or the laws of descent and distribution, and shall be exercisable only by the Optionee during
the Optionee’s lifetime, except as otherwise permitted by the Administrator and by Sections 421, 422 and 424 of the Code and the
regulations and other guidance thereunder.

 

(ii)             
Domestic Relations Orders. Notwithstanding the foregoing, an Option may be transferred pursuant to a domestic relations
order; provided, however, that if an Option is an Incentive Stock Option, such Option shall be deemed to be a Nonstatutory Stock
Option as a result of such transfer.

 

(iii)           
Beneficiary Designation. Notwithstanding the foregoing, the Optionee may, by delivering written notice to the Company,
in a form provided by or otherwise satisfactory to the Company, designate a third party who, in the event of the death of the Optionee,
shall thereafter be the beneficiary of an Option with the right to exercise the Option and receive the Common Stock or other consideration
resulting from an Option exercise. In the absence of such a designation, the executor or administrator of the Optionee’s estate
shall be entitled to exercise the Option and receive the Common Stock or other consideration resulting from an Option exercise.

 

(e)              
Vesting. Each Option shall vest and become exercisable in one or more installments, at such time or times and subject
to such conditions, including without limitation the achievement of specified Performance Goals or objectives established with respect
to one or more performance criteria, as shall be determined by the Administrator (provided that no Option shall vest for at least twelve
(12) months following the date of grant).

 

(f)               
Termination of Service. In the event of the Termination of Service of an Optionee for any reason (other than for “Cause,”
as defined in an Option Agreement, or upon the Optionee’s death or Disability), the Optionee may exercise his or her Option, but
only within such period of time as is set forth in the Option Agreement (and in no event later than the expiration of the term of such
Option as set forth in the Option Agreement). In the case of an Incentive Stock Option, such exercise period provided in the Option Agreement
shall not exceed three (3) months from the date of termination.

 

(g)              
Disability of Optionee. In the event of a Termination of Service of an Optionee as a result of the Optionee’s
Disability, the Optionee may exercise his or her Option within the period specified in the Option Agreement (in no event to exceed twelve
(12) months from the date of such termination in the case of an Incentive Stock Option), and only to the extent that the Optionee was
entitled to exercise the Option at the date of such termination (but in no event later than the expiration of the term of such Option
as set forth in the Option Agreement).

 

(h)             
Death of Optionee. In the event that (i) an Optionee’s Termination of Service occurs as a result of the Optionee’s
death, or (ii) an Optionee dies within the period (if any) specified in the Option Agreement after the Optionee’s Termination of
Service for a reason other than death, then, notwithstanding Section 6(f) above, the Option may be exercised (to the extent the Optionee
was entitled to exercise such Option as of the date of death) by the Optionee’s estate, by a person who acquired the right to exercise
the Option by bequest or inheritance or by a person designated to exercise the option upon the Optionee’s death, but only within
the period ending on the earlier of (i) the date that is twelve (12) months after the date of Termination of Service, or (ii) the expiration
of the term of such Option as set forth in the Option Agreement.

 

(i)               
Termination for Cause. In the event of the Termination of Service of an Optionee for Cause, except as otherwise determined
by the Administrator in the specific situation, all Options granted to such Optionee shall expire as set forth in the Option Agreement.

 

(j)              
Extension of Termination Date. An Optionee’s Option Agreement may provide that if the exercise of the Option following
an Optionee’s Termination of Service (other than for Cause or upon the Optionee’s death or Disability) would be prohibited
at any time solely because the issuance of shares of Common Stock would violate the registration requirements under the Securities Act,
then the Option shall terminate on the earlier of (i) the expiration of a period of three (3) months after the termination of the Optionee’s
Continuous Service during which the exercise of the Option would not be in violation of such registration requirements, or (ii) the expiration
of the term of the Option as set forth in the Option Agreement.

 

 

 

 

    	 	10	 

     

    

 

(k)             
Early Exercise. The Option may, but need not, include a provision whereby the Optionee may elect at any time prior to
a Termination of Service to exercise the Option as to any part or all of the Option Shares prior to the full vesting of the Option. Any
unvested Option Shares so purchased may be subject to an unvested share repurchase option in favor of the Company or to any other restriction
the Administrator determines to be appropriate.

 

7.                 
Provisions of Stock Awards Other Than Options.

 

(a)              
Stock Bonus Awards. Stock Bonus awards shall be made pursuant to Stock Bonus Agreements in such form and containing
such terms and conditions as the Administrator shall deem appropriate. The terms and conditions of Stock Bonus Agreements may change from
time to time, and the terms and conditions of separate Stock Bonus Agreements need not be identical, but each Stock Bonus Agreement shall
include (through incorporation of provisions hereof by reference in the agreement or otherwise) the substance of each of the following
provisions (except to the extent that any such provision indicates it is permissible rather than mandatory):

 

(i)               
Consideration. A Stock Bonus may be awarded in consideration for past services actually rendered to the Company or
an Affiliate for its benefit, provided that the Participant remains eligible to receive Stock Awards hereunder at the time of the award.

 

(ii)             
Vesting. Award Shares issued pursuant to a Stock Bonus Agreement may, but need not, be subject to a share repurchase
option in favor of the Company in accordance with a vesting schedule to be determined by the Administrator (which may include the satisfaction
of Performance Goals).

 

(iii)            
Termination of Service. In the event of a Termination of Service, the Company may reacquire any or all of the Award
Shares held by the Participant which have or have not vested as of the date of termination under the terms of the Stock Bonus Agreement.

 

(iv)            
Transferability. Unless otherwise determined by the Administrator, rights to acquire Award Shares under the Stock
Bonus Agreement shall not be transferable except by will or by the laws of descent and distribution, or, to the extent permitted by the
Administrator, to a revocable trust.

 

(b)             
Restricted Stock Awards. Each Restricted Stock award shall be made pursuant to a Restricted Stock Award Agreement in
such form and containing such terms and conditions as the Administrator shall deem appropriate. The terms and conditions of the Restricted
Stock Award Agreements may change from time to time, and the terms and conditions of separate Restricted Stock Award Agreements need not
be identical, but each Restricted Stock Award Agreement shall include (through incorporation of provisions hereof by reference in the
agreement or otherwise) the substance of each of the following provisions (except to the extent that any such provision indicates it is
permissible rather than mandatory):

 

(i)               
Purchase Price. The purchase price under each Restricted Stock Award Agreement shall be such amount as the Administrator
shall determine and designate in such Restricted Stock Award Agreement, including no consideration or such minimum consideration as may
be required by applicable law.

 

(ii)             
Consideration. The purchase price of Common Stock acquired pursuant to the Restricted Stock Award Agreement, if any,
shall be paid either: (a) in cash at the time of purchase; (b) at the discretion of the Administrator, according to a deferred payment
or other similar arrangement with the Participant; or (c) in any other form of legal consideration that may be acceptable to the Administrator
in its discretion.

 

(iii)            
Vesting. Award Shares acquired under the Restricted Stock Award Agreement may, but need not, be subject to a share
repurchase option in favor of the Company in accordance with a vesting schedule to be determined by the Administrator (which may include
the satisfaction of Performance Goals).

 

(iv)            
Termination of Service. In the event of a Participant’s Termination of Service, the Company may repurchase
or otherwise reacquire any or all of the Award Shares held by the Participant which have or have not vested as of the date of termination
under the terms of the Restricted Stock Award Agreement.

 

 

 

 

    	 	11	 

     

    

 

(v)             
Transferability. Unless otherwise determined by the Administrator, rights to acquire Award Shares under the Restricted
Stock Award Agreement shall not be transferable except by will, by the laws of descent and distribution, or, to the extent permitted by
the Administrator, to a revocable trust.

 

(c)              
Restricted Stock Units.

 

(i)               
Issuance of Restricted Stock Units. The Administrator is authorized to make Awards of Restricted Stock Units to any
Participant selected by the Administrator in such amounts and subject to such terms and conditions as determined by the Administrator.
At the time of grant, the Administrator shall specify the date or dates on which the Restricted Stock Units shall become fully vested
and nonforfeitable, and may specify such conditions to vesting as it deems appropriate. Alternatively, Restricted Stock Units may become
fully vested and nonforfeitable pursuant to the satisfaction of one or more Performance Goals as the Administrator determines to be appropriate
at the time of the grant of the Restricted Stock Units or thereafter, in each case on a specified date or dates or over any period or
periods determined by the Administrator. At the time of grant, the Administrator shall specify the maturity date applicable to each grant
of Restricted Stock Units which shall be no earlier than the vesting date or dates of the Award. All Restricted Stock Unit awards shall
be subject to such additional terms and conditions as determined by the Administrator and shall be evidenced by a written Stock Award
Agreement.

 

(ii)             
Settlement of Restricted Stock Units. On the maturity date, the Company shall transfer to the Participant one unrestricted,
fully transferable share of Common Stock or cash equal to the Fair Market Value of one share of Common Stock for each Restricted Stock
Unit that is vested and scheduled to be distributed on such date and not previously forfeited.

 

(iii)            
Dividend Equivalents. Unless otherwise provided in an Stock Award Agreement, each Restricted Stock Unit may include
the right to receive, on a deferred basis, amounts equivalent to cash, stock or other property dividends on shares of Common Stock (“Dividend
Equivalents”) as provided herein. Dividend Equivalents will accumulate and be withheld until the applicable Restricted Stock Units
upon which the Dividend Equivalents are awarded vest and any Dividend Equivalent payments that have accumulated and have been withheld
by the Committee and attributable to any particular Restricted Stock Unit shall be distributed to the Participant in cash or, at the sole
discretion of the Administrator, in Shares having a Fair Market Value equal to the amount of such Dividend Equivalent payments then due;
provided that, in the event that all or any portion of any Restricted Stock Unit is forfeited, the Dividend Equivalents attributable to
such forfeited Restricted Stock Unit shall also be forfeited. Upon the vesting and settlement of Restricted Stock Units that include Dividend
Equivalents, the Dividend Equivalents attributable to such Restricted Stock Units shall expire automatically.

 

(iv)            
Termination of Service. Except as otherwise set forth in the Stock Award Agreement or as otherwise determined by
the Administrator, vesting of Restricted Stock Units ceases on the date Participant experiences a Termination of Service.

 

8.                 
Covenants of the Company.

 

(a)              
Availability of Shares. During the terms of the Stock Awards, the Company shall keep available at all times the number
of shares of Common Stock required to satisfy such Stock Awards.

 

(b)             
Compliance with Laws and Regulations. This Plan, the grant and exercise of Stock Awards thereunder, and the obligation
of the Company to sell, issue or deliver Award Shares under such Stock Awards, shall be subject to all applicable federal, state and local
laws, rules and regulations and to such approvals by any governmental or regulatory agency as may be required. The Company shall not be
required to register in a Participant’s name or deliver any Award Shares prior to the completion of any registration or qualification
of such Shares under any federal, state or local law or any ruling or regulation of any government body which the Administrator shall
determine to be necessary or advisable. To the extent the Company is unable to or the Administrator deems it infeasible to obtain authority
from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary or advisable for
the lawful issuance and sale of any Award Shares hereunder, the Company shall be relieved of any liability with respect to the failure
to issue or sell such Award Shares as to which such requisite authority shall not have been obtained. No Option shall be exercisable and
no Award Shares shall be issued and/or transferable under any other Stock Award unless a registration statement with respect to the Award
Shares underlying such Stock Award is effective and current or the Company has determined that such registration is unnecessary.

 

 

 

 

    	 	12	 

     

    

 

9.                 
Use of Proceeds.

 

Proceeds from the sale of
Award Shares shall constitute general funds of the Company and shall be used for general operating capital of the Company.

 

10.             
Adjustments Upon Change in Common Stock.

 

If any change is made in the
Common Stock subject to the Plan or subject to any Stock Award without the receipt of consideration by the Company (through merger, consolidation,
reorganization, recapitalization, reclassification, stock dividend, dividend in property other than cash, stock split, reverse stock split,
liquidating dividend, exchange of shares, change in corporate structure or other distribution of the Company’s equity securities),
the Plan and all outstanding Stock Awards will be appropriately adjusted in the class and maximum number of shares subject to the Plan
and the class and number of shares and price per share of Common Stock subject to outstanding Stock Awards. Any adjustment in Incentive
Stock Options under this Section 10 shall be made only to the extent not constituting a “modification” within the meaning
of Section 424(h)(3) of the Code, and any otherwise applicable adjustments under this Section 10 shall be made in a manner that does not
adversely affect the exemption provided pursuant to Rule 16b-3 under the Exchange Act or the exemption under Section 409A of the Code,
to the extent applicable. The Company shall give each Participant notice of an adjustment hereunder and, upon notice, such adjustment
shall be conclusive and binding for all purposes.

 

11.             
Adjustments Upon Change in Control.

 

(a)              
Continuation of Awards; Assumption or Replacement of Awards by Successor; Payment for Awards. In the event of a Change
in Control of the Company, outstanding Stock Awards under this Plan shall be subject to the documentation evidencing the Change in Control
transaction, which need not treat all outstanding Stock Awards in an identical manner. Such agreement, without the Participant’s
consent, shall provide for one or more of the following with respect to all outstanding Stock Awards as of the effective date of such
Change in Control transaction:

 

(i)               
The continuation of outstanding Stock Awards by the Company (if the Company is the successor entity).

 

(ii)             
The assumption of outstanding Stock Awards by the successor or acquiring entity in such Change in Control transaction (or by its
parent, if any), which assumption will be binding on all selected Participants; provided that the exercise price and the number and nature
of shares issuable upon exercise of any such Option or any Stock Award that is subject to Section 409A of the Code, will be adjusted appropriately
pursuant to Section 424(a) of the Code.

 

(iii)            
The substitution by the successor or acquiring entity in such Change in Control transaction (or by its parent entity, if any) of
equivalent awards with substantially the same terms for selected Stock Awards (except that the exercise price and the number and nature
of shares issuable upon exercise of any such Option or any Stock Award that is subject to Section 409A of the Code, will be adjusted appropriately
pursuant to Section 424(a) of the Code).

 

(iv)            
A payment to the Participant equal to the excess of (i) the Fair Market Value of the Award Shares subject to the Stock Award
as of the effective date of such Change in Control transaction over (ii) the exercise price or purchase price of Award Shares, as
the case may be, subject to the Stock Award, in connection with the cancellation of the Stock Award. Such payment will 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. Subject to Section 409A of the Code, such payment may be made in installments, may be deferred until the date or dates when the
Stock Award would have become exercisable or such Award Shares would have vested, and may be subject to continued vesting based on the
Participant’s continuing to provide services following such Change in Control transaction. In addition, any escrow, holdback, earnout
or similar provisions in the agreement for such Change in Control transaction may apply to such payment to the same extent and in the
same manner as such provisions apply to the holders of Common Stock. If the exercise price of an Option exceeds the Fair Market Value
of the Option Shares, then the Option may be cancelled without making a payment to the Participant. For purposes of this subsection, the
Fair Market Value of any security will be determined without regard to any vesting conditions that may apply to such security.

 

 

 

 

    	 	13	 

     

    

 

Outstanding Stock Awards need
not be treated similarly in a Change in Control transaction.

 

(b)             
Acceleration of Vesting. Notwithstanding Section 11(a) above:

 

(i)              
Stock Awards Not Assumed, Converted, Replaced. Solely in a Change in Control transaction in which the successor or
acquiring corporation refuses to assume, convert, replace, substitute, or make payment against cancellation of outstanding Stock Awards,
as provided above, then notwithstanding any other provision in this Plan to the contrary, and unless otherwise determined by the Administrator,
all Stock Awards granted under this Plan shall accelerate in full as of the time of consummation of the Change in Control transaction.
In such event, the Administrator will notify Participants in writing or electronically that such Stock Awards will be exercisable for
a period of time determined by the Stock Award in its sole discretion, and such Stock Award will terminate upon the expiration of such
period.

 

(ii)             
Termination of Employment Following Change in Control. In the event of a Change in Control of the Company in which
the successor company assumes, converts, replaces, or substitutes a Stock Award pursuant to Section 11(a)(i) - (iii) above (or in which
the Company is the successor entity and continues the Stock Award), if a Participant’s employment with such successor company (or
a subsidiary thereof) terminates (except as provided in the Stock Award Agreement, other than a termination by the Company for Cause)
within twelve (12) months following such Change in Control (or such other period set forth in the Stock Award Agreement, including prior
thereto if applicable): (i) Options outstanding as of the date of such termination of employment will immediately vest, become fully exercisable,
and may thereafter be exercised, (ii) restrictions, limitations and other conditions on Restricted Stock and Restricted Stock Units shall
lapse and the Restricted Stock and Restricted Stock Units shall become free of all restrictions, limitations and conditions and become
fully vested, (iii) all Performance-Based Awards shall be considered to be earned and payable (pro rata based on the portion of the Performance
Period completed as of the date of the termination), and any other restrictions shall lapse and such Performance-Based Awards shall be
immediately settled or distributed, and (iv) the restrictions, limitations and other conditions applicable to any other Stock Awards shall
lapse, and such other Stock Awards shall become free of all restrictions, limitations and conditions and become fully vested and transferable
to the full extent of the original grant.

 

(c)              
Notice to Participants. The Administrator shall give written notice of any proposed Change in Control transaction referred
to in this Section 11 at a reasonable period of time prior to the closing date for such transaction (which notice may be given either
before or after the approval of such transaction), in order that Participants may have a reasonable period of time prior to the closing
date of such transaction within which to exercise any Stock Awards that are then exercisable (including any Stock Awards that may become
exercisable upon the closing date of such Change in Control transaction). A Participant may condition his or her exercise of any Stock
Awards upon the consummation of the Change in Control transaction.

 

12.             
Dissolution or Liquidation.

 

In the event of a dissolution
or liquidation of the Company, then all outstanding Stock Awards shall terminate immediately prior to such event.

 

13.             
Miscellaneous.

 

(a)              
Foreign Award Recipients. Notwithstanding any provision of this Plan to the contrary, in order to comply with the laws
and practices in countries other than the United States in which the Company and its Affiliates operate or have employees or other individuals
eligible for Stock Awards, the Administrator, in its sole discretion, shall have the power and authority to: (i) determine which Affiliates
shall be covered by this Plan; (ii) determine which individuals outside the United States are eligible to participate in this Plan, which
may include individuals who provide services to the Company or Affiliate under an agreement with a foreign nation or agency; (iii) modify
the terms and conditions of any Stock Award granted to individuals who are located outside the United States or who are foreign nationals
to comply with applicable foreign laws, policies, customs and practices; (iv) establish subplans and modify exercise procedures and other
terms and procedures, to the extent determined necessary or advisable by the Administrator and provided that (a) no such subplans and/or
modifications shall increase the share limitations contained in Section 4(a) hereof and (b) in such instance, such subplans and/or modifications
shall be attached to this Plan as appendices; and (v) take any action, before or after a Stock Award is made, that the Administrator determines
to be necessary or advisable to obtain approval or comply with any local governmental regulatory exemptions or approvals. Notwithstanding
the foregoing, the Administrator may not take any actions hereunder, and no Award shall be granted, that would violate the Exchange Act
or any other applicable United States securities law, the Code or any other applicable United States governing statute or law.

 

 

 

    	 	14	 

     

    

 

(b)              
Shareholder Rights. Neither a Participant nor any person to whom a Stock Award is transferred shall be deemed to be
the holder of, or to have any of the rights of a holder with respect to, any Award Shares unless and until such person has satisfied all
requirements for exercise of the Stock Award pursuant to its terms and the Company has duly issued a stock certificate for such Award
Shares. After Award Shares are issued to the Participant, the Participant will be a shareholder and have all the rights of a shareholder
with respect to such Award Shares, including the right to vote and receive all dividends or other distributions made or paid with respect
to such Award Shares. Notwithstanding the foregoing, if such Award Shares are Restricted Stock, then any new, additional or different
securities the Participant may become entitled to receive with respect to such Award Shares by virtue of a stock dividend, stock split
or any other change in the corporate or capital structure of the Company will be subject to the same restrictions as the Restricted Stock;
provided, further, that the Participant will have no right to such stock dividends or stock distributions with respect to unvested shares
of Restricted Stock, and any such dividends or stock distributions shall be accrued and paid only at such time if any, as such unvested
shares of Restricted Stock become vested. The Administrator, in its discretion, may provide in the Stock Award Agreement evidencing any
Stock Award that the Participant shall be entitled to Dividend Equivalents with respect to the payment of cash dividends on Award Shares
subject to such Stock Award during the period beginning on the date the Stock Award is granted and ending, with respect to each Award
Share subject to the Stock Award, on the earlier of the date on which the Stock Award is exercised or settled or the date on which the
Award Shares are forfeited; provided, that under no circumstances may Dividend Equivalents be granted for any Option and provided, further,
that no Dividend Equivalents shall be paid with respect to unvested Award Shares, and any such dividends or stock distributions shall
be accrued and paid only at such time, if any, as such unvested Award Shares become vested. Such Dividend Equivalents, if any, shall be
credited to the Participant and distributed to the Participant in cash or, at the sole discretion of the Committee, in shares of Common
Stock having a Fair Market Value equal to the amount of such Dividend Equivalents then due.

 

(c)              
No Employment or Other Service Rights. Nothing in the Plan or any Stock Award Agreement shall confer upon any Participant
any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the Stock Award was granted or shall
affect the right of the Company or an Affiliate to terminate (i) the employment of an Employee with or without notice and with or without
Cause; (ii) the service of a Consultant pursuant to the terms of such Consultant’s agreement with the Company or an Affiliate; or
(iii) the service of a Director pursuant to the Bylaws or Articles of Incorporation of the Company or an Affiliate, and any applicable
provisions of the corporate law of the state in which the Company or the Affiliate is incorporated, as the case may be.

 

(d)             
Unfunded Status of the Plan. The Plan is intended to constitute an “unfunded” plan for incentive compensation.
With respect to any payments not yet made to a Participant by the Company, nothing contained herein shall give any such Participant any
rights that are greater than those of a general unsecured creditor of the Company.

 

(e)              
Clawback / Recovery. All Stock Awards held by an executive officer shall be subject to clawback, recoupment or forfeiture
(i) to the extent that such executive officer is determined to have engaged in fraud or intentional illegal conduct materially contributing
to a financial restatement, as determined by the Board in its sole discretion, (ii) as provided under any clawback, recoupment or
forfeiture policy adopted by the Board, or (iii) required by law. Such clawback, recoupment or forfeiture policy, in addition to
any other remedies available under applicable law, may require the cancellation of outstanding Stock Awards and the recoupment of any
gains realized with respect to Stock Awards.

 

(f)               
Incentive Stock Option $100,000 Limitation. To the extent that the aggregate Fair Market Value (determined at the time
of grant) of Common Stock with respect to which Incentive Stock Options are exercisable for the first time by any Optionee during any
calendar year (under all plans of the Company and any Affiliates) exceeds One Hundred Thousand Dollars ($100,000), the Options or portions
thereof that exceed such limit (according to the order in which they were granted) shall be treated as Nonstatutory Stock Options, notwithstanding
any contrary provision of the applicable Option Agreement(s).

 

 

 

 

    	 	15	 

     

    

 

(g)              
Withholding Obligations. The Company may, in its sole discretion, satisfy any federal, state or local tax withholding
obligation relating to a Stock Award by any of the following means (in addition to the Company’s right to withhold from any compensation
paid to the Participant by the Company) or by a combination of such means: (i) causing the Participant to tender a cash payment; (ii)  withholding
shares of Common Stock from the shares of Common Stock issued or otherwise issuable to the Participant in connection with the Stock Award,
provided that no shares of Common Stock are withheld with a value exceeding the minimum amount of tax required to be withheld by law (or
such lower amount as may be necessary to avoid classification of the Stock Award as a liability); or (iii) by such other method as may
be set forth in the Stock Award Agreement.

 

(h)             
Compliance with Section 409A of the Code. To the extent applicable, the Plan and Stock Award Agreements shall be interpreted
in accordance with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder,
including without limitation any such regulations or other guidance that may be issued or amended after the Effective Date (as defined
in Section 18 below). Notwithstanding any provision of the Plan or Stock Award to the contrary, in the event that following the Effective
Date the Administrator determines that any Stock Award may be subject to Section 409A of the Code and related Department of Treasury guidance
(including such Department of Treasury guidance as may be issued after the Effective Date), the Administrator may adopt such amendments
to the Plan and the applicable Stock Award Agreement or adopt other policies and procedures (including amendments, policies and procedures
with retroactive effect), or take any other actions, that the Administrator determines are necessary or appropriate to (i) exempt the
Stock Award from Section 409A of the Code and/or preserve the intended tax treatment of the benefits provided with respect to the Stock
Award; or (ii) comply with the requirements of Section 409A of the Code and Department of Treasury regulations and other interpretive
guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued or amended after the
Effective Date.

 

(i)                
Documentation and Communications. The Stock Award Agreement for a given Stock Award, this Plan, and related communications
and any other documents may be delivered to, and accepted by, a Participant or any other person in any manner (including electronic distribution
or posting) that meets applicable legal requirements.

 

14.             
Amendment of the Plan.

 

(a)              
In General. The Administrator at any time, and from time to time, may amend the Plan. However, no amendment shall be
effective unless approved by the shareholders of the Company within twelve (12) months before or after the adoption of the amendment where
the amendment will:

 

(i)               
Increase the number of shares reserved for Stock Awards under the Plan, except as provided in Section 11 relating to adjustments
upon changes in Common Stock;

 

(ii)             
Modify the requirements as to eligibility for participation in the Plan (to the extent such modification requires shareholder approval
in order for the Plan to satisfy the requirements of Section 422 of the Code); or

 

(iii)            
Modify the Plan in any other way if such modification requires shareholder approval in order for the Plan to satisfy the requirements
of Section 422 of the Code.

 

(b)             
No Repricing. The Administrator may not (except pursuant to Section 10 or in connection with a Change in Control), when
the exercise price or grant price per Award Share exceeds the Fair Market Value of a share of Common Stock, without the approval of the
Company’s shareholders, cancel an Option or Stock Award in exchange for cash or take any other action with respect to an Option
or Stock Award that would be treated as a repricing under the rules and regulations of the principal securities market on which the Award
Shares are traded, including a reduction of the exercise price of an Option or the exchange of an Option for another Stock Award.

 

(c)              
Amendment to Maximize Benefits. It is expressly contemplated that the Administrator may amend the Plan in any respect
the Administrator deems necessary or advisable to provide Participants with the maximum benefits provided or to be provided under the
provisions of the Code and the regulations promulgated thereunder relating to Incentive Stock Options and/or to bring the Plan and/or
Incentive Stock Options granted under the Plan into compliance therewith.

 

 

 

 

    	 	16	 

     

    

 

(d)             
No Impairment. The rights and obligations under any Stock Award granted before any amendment of the Plan shall not be
altered or impaired by such amendment unless the Company requests the consent of the person to whom the Stock Award was granted and such
person consents in writing; provided, however, that notwithstanding anything to the contrary in this Section 16 or elsewhere
in this Plan, no such consent shall be required with respect to any amendment or alteration if the Administrator determines in its sole
discretion that such amendment or alteration either (i) is required or advisable in order for the Company, the Plan or the Stock Award
to satisfy or conform to any law or regulation or to meet the requirements of any accounting standard, or (ii) is not reasonably likely
to significantly diminish the benefits provided under such Award, or that any such diminishment has been adequately compensated.

 

15.             
Termination or Suspension of the Plan.

 

(a)              
Termination or Suspension. The Board may suspend or terminate the Plan at any time. Unless sooner terminated, the Plan
shall terminate on April 8, 2031 (which shall be within ten (10) years from the date the Plan is adopted by the Board or approved
by the shareholders of the Company, whichever is earlier), and no Stock Awards may be granted under the Plan while the Plan is suspended
or after it is terminated, but Stock Awards and Stock Award Agreements then outstanding shall continue in effect in accordance with their
respective terms.

 

(b)             
No Impairment. Rights and obligations under any Stock Award granted while the Plan is in effect shall not be altered
or impaired by suspension or termination of the Plan, except as otherwise provided herein or with the consent of the person to whom the
Stock Award was granted.

 

16.             
Effective Date of Plan.

 

The Plan became effective
on April 9, 2021, which is the date that the Plan was originally adopted by the Board (the “Effective Date”).

 

17.             
Non-Exclusivity of the Plan

 

Neither the adoption of this
Plan by the Board nor the submission of this Plan to the shareholders of the Company for approval shall be construed as creating any limitations
on the power of the Board to adopt such other incentive arrangements as either may deem desirable, including, without limitation, the
granting of stock options or restricted stock otherwise than under this Plan, and such arrangements may be either generally applicable
or applicable only in specific cases.

 

18.             
Liability of the Company.

 

The Company and the members
of the Board shall not be liable to a Participant or any other persons as to: (a) the non-issuance or non-transfer, or any delay of issuance
or transfer, of any Award Shares which results from the inability of the Company to comply with, or to obtain, or from any delay in obtaining
from any regulatory body having jurisdiction, all requisite authority to issue or transfer Award Shares if counsel for the Company deems
such authority reasonably necessary for lawful issuance or transfer of any such shares and, in furtherance thereof, appropriate legends
may be placed on the stock certificates evidencing Award Shares to reflect such transfer restrictions; and (b) any tax consequence expected,
but not realized, by any Participant or other person due to the receipt, exercise or settlement of any Option or other Stock Award granted
hereunder.

 

19.             
Choice of Law.

 

The laws of the State of California
shall govern all questions concerning the construction, validity and interpretation of this Plan, without regard to such state’s
conflict of laws rules.

 

  

 

 

    	 	17	 

     

    

 

 

 

 

 

 

 

 

 

 

 

 

 

====================================================================

 

 

 

 

2021 EQUITY INCENTIVE PLAN

 

OF

 

 

Simulations
Plus, Inc.

 

 

 

 

 

====================================================================

 

 

 

 

 

 

 

 

 

 

 

 

    	 	18	 

     

    

 

	1.   General.	1
	2.   Definitions.	1
	3.   Administration.	7
	4.   Shares Subject to the Plan; Overall Limitations.	9
	5.   Eligibility.	10
	6.   Option Agreement Provisions.	10
	7.   Provisions of Stock Awards Other Than Options.	13
	8.   Covenants of the Company.	16
	9.   Use of Proceeds.	16
	10.   Adjustments Upon Change in Common Stock.	16
	11.   Adjustments Upon Change in Control.	16
	12.   Dissolution or Liquidation.	17
	13.   Miscellaneous.	17
	14.   Amendment of the Plan.	20
	15.   Termination or Suspension of the Plan.	21
	16.   Effective Date of Plan.	21
	17.   Non-Exclusivity of the Plan	21
	18.   Liability of the Company.	21
	19.   Choice of Law.	21

 

 

 

    	 	19

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