Document:

Exhibit 10.1

 

FORM OF EXECUTIVE EMPLOYMENT AGREEMENT

 

THIS EXECUTIVE EMPLOYMENT
AGREEMENT (the “Agreement”) dated as of November 4, 2019 (the “Effective Date”), is
by and between GrowGeneration Corp., a Colorado Corporation with offices at 1000 W Mississippi Ave., Denver, CO 80223 (the “Company’’)
and Tony Sullivan, an individual residing at 1 Waterlily Court, Medford, NJ 08055 (the “Executive”.)

 

RECITALS

 

WHEREAS,
the Company desires to continue to employ the Executive and the Executive desires to continue employment with the Company,
all upon the terms and provisions, and subject to the conditions, as set forth in this Agreement.

 

NOW,
THEREFORE, in consideration of the mutual premises, covenants and agreements hereinafter set forth, and for other good and
valuable consideration, the receipt, and legal adequacy of which is hereby acknowledged, the parties, intending to be legally bound,
hereby agree as follows:

 

1. POSITION AND DUTIES.

 

(a) Reporting. During the term of
this Agreement (the “Employment Term”), the Company shall employ the Executive, and the Executive shall serve,
as the Chief Operating Officer of the Company. The Executive shall report directly to the CEO and President of the Company.

 

(b) Responsibilities. The Executive
shall have responsibility to oversee all aspects of the Company’s business activities as are customarily performed and enjoyed
by persons employed in comparable positions, subject, however, in all instances to the direction and control of the Board. A copy
of the Executives duties are attached hereto as Exhibit 1.

 

(c) Devotion of Executive’s Time.
Subject to Section 2(d) hereof, the Executive shall devote all of his business time, labor, skill and energy to conducting the
business and affairs of the Company and to performing his duties and responsibilities to the Company as set forth in Section 2(b)
hereof The Executive shall not become employed with, consult with or otherwise perform services for any other entity or individual
during the Term of this Agreement. The Executive shall perform the Executive’s duties and responsibilities to the Company
diligently, competently, faithfully and to the best of his ability. Executive shall perform his duties from his home office and
shall travel as needed.

 

(d) Representations.
The Executive represents and warrants to the Company that the Executive has the right to negotiate and enter into this Agreement,
and the Executive’s execution, delivery and performance of this Agreement does not breach, interfere with or conflict with
any other contractual agreement, covenant not to compete, option, right of first refusal or other existing business relationship
or any judgment or order, in each case, to which the Executive is a party or otherwise subject.

 

2. EMPLOYMENT TERM.

 

(a) Initial Term.
The initial term of employment shall be for a period of three years (the “Employment Term”), commencing with
the date hereof, unless sooner terminated as provided in this Agreement. This Agreement shall be renewed annually for a term of
one year unless the Company or the Executive gives notice to the other of termination at least sixty (60) days prior to the expiration
of the initial term, or any successive term, as the case may be.

 

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(b) Termination for
Cause. Notwithstanding the provisions of Section 2(a) above. the Company shall have the right to terminate the Executive’s
employment for Cause (as defined in Section 2(c) below); provided, however, that the Executive shall not be deemed to have been
terminated for Cause unless and until the Board of Directors at a meeting duly called and held for that purpose shall have determined
that the Executive committed an act falling within the definition of Cause and specifying the basis for such determination. If
the Executive’s employment shall be terminated by the Company for Cause, then the Company shall pay to the Executive any
unpaid salary, bonuses and benefits through the effective date of termination. If the Executive’s employment shall be terminated
by the Company without Cause, then the Company shall pay to the Executive any unpaid salary, bonuses and benefits through the
effective date of termination.

 

(c) Cause. For purposes of this
Agreement the term, “Cause” shall mean the Executive’s : (a) engagement in gross misconduct materially
injurious to the Company: (b) knowing and willful neglect or refusal to attend to the material duties assigned to him by the Board
of Directors of the Company, which is not cured within 30 days after written notice; (c) conviction of an act of fraud or embezzlement;
or (e) conviction of a felony.

 

(d) Notice
of Termination. Any purported termination of the Executive’s employment by the Company hereunder shall be
communicated by a Notice of Termination to the Executive in accordance with Section 13. For
purposes of this Agreement, a “Notice of Termination” shall mean a written notice which shall indicate
those specific termination provisions in. this Agreement relied upon and which sets forth in reasonable detail the facts
and circumstances claimed to provide a basis for termination of the Executive’s employment under the provisions
so indicated.

 

(e) Date of
Termination. For purposes of this Agreement, the date of termination shall be: (a) if this Agreement is terminated by the
Company for Incapacity (as defined in Section 4(a) below), the date on which a Notice of Termination is given. (b) if the
Executive’s employment is terminated by the Company for any other reason (other than death), the date on which a Notice
of Termination is given or (c) if the Company or Executive terminates his employment for any reason, the date on, which he
gives the Company notice of such termination.

 

3. COMPENSATION

 

The Company shall pay to the Executive
for the services to be rendered by the Executive hereunder, a salary for the initial Employment Term under this Agreement at the
rate of $270,000 per annum. The salary shall be payable in accordance with the Company’s regular policies, subject to applicable
withholding and other taxes. Such Salary will be increased during the term of this Agreement by 10 percent annually.

 

(a) Bonus. The Executive shall receive
a bonus with respect to each fiscal year of the Company during which he is employed hereunder, commencing with the year ending
December 31, 2020 in an amount equal to a minimum of $75,000 paid bonus wages at the discretion of the Board of Directors of the
Company. It being expressly agreed that the first Bonus payment will be on February 1, 2020, second Bonus payment on December 31,
2021 and the third Bonus payment on December 31, 2022.

 

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(b) Grant of
Common Shares and Stock Options. The Executive will be granted 120,000 of GRWG Common Stock payable in 3 incremental
payments on 11/01/2019 (40,000 shares), 11/01/2020 (40,000 shares) and 01/01/2021 (40,000 shares). The disposition, transfer
or sale of the common shares granted in the Option Agreement is subject to the terms and conditions of the Option Agreement
and the Company’s 2018 Equity Incentive Plan. In addition, Executive will be granted 160,000 stock options on 11/4/2019
and 60,000 stock options on 11/4/2020 and 60,000 stock options 11/4/2021.

 

(c) Expenses.
The Company agrees promptly to reimburse the Executive for all reasonable and necessary● business expenses, including
without limitation: travel and telephone incurred by him on behalf of the Company in the course of his duties hereunder, upon
the presentation by the Executive of appropriate evidence thereof.

 

(d) Relocation.
The Company will provide an executive level relocation covering all out-of-pocket reimbursement for relocation expenses to
the Denver, CO area including gross up (no tax liability), moving, closing costs, temporary housing, etc. The relocation fees
will be the lessor of $80,000 or the actual costs of the relocation.

 

4. DEATH; INCAPACITY.

 

(a) Incapacity. If, during the Employment
Tem1hereunder, because of illness or other incapacity, the Executive shall fail for a period of six (6) consecutive months (“Incapacity”),
to render the services contemplated hereunder, then the Company, at its option, may terminate the employment hereunder by notice
to the Executive, effective on the giving of such notice: provided however, that the Company shall (i) pay to the Executive any
unpaid salary through the effective date of termination specified in such notice; (l) pay to the Executive his accrued but
unpaid incentive compensation, if any, for any bonus period ending on or before. the date of termination of the Executive’s
employment with the Company; (iii) continue to pay the Executive for a period of six (6) months following the effective date of
termination, an amount equal to the excess, if any, of (A) the salary he was receiving at the time of his In capacity, over (B)
any benefit the Executive is entitled to receive during such period under any disability insurance policies provided to the Executive
by the Company or maintained by the Executive, such amount to be paid in the manner and at such time as the salary otherwise would
have been payable to the Executive; and (iv) pay to the Executive (within 45 days after the end of the fiscal quarter in which
such termination occurs) a pro-rata portion (based upon the period ending on the date of termination of the Executive’s employment
hereunder) of the incentive compensation, if any, for the bonus period in which such termination occurs. The Company shall have
no farther liability hereunder (other than for reimbursement for reasonable business expenses incurred prior to the date of the
Executive’ Incapacity and other reimbursable expenses due under Section 3(t) through the date of Executive’s Incapacity,
and repayment of compensation for unused vacation days that have accumulated during the calendar years in which such termination
occurs).

 

5.
TERMINATION BY THE COMPANY OR THE EXECUTIVE WITH NO REASON. Either the Company or the
Executive shall have the right to terminate the Executive’s employment hereunder for “No Reason” by providing
the Company’s Board of Directors with six months (180) days-notice. Notwithstanding the foregoing, if the Executive terminates
this Agreement, the Company shall have the right to terminate this Agreement at any time during the 6-month (180) day notice period.
If the Company shall terminate the Executive without cause the Company shall pay the Executive six (6) months’ severance.

 

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6. EMPLOYEE BENEFITS.

 

(a) Eligibility. During the period
of the Executive’s employment with the Company hereunder, the Executive shall be entitled to receive such other perquisites
and fringe benefits generally if and when made available by the Company to it5 senior executives and key management employees as
a group in accordance with the plans and policies of the Company..

 

(b) Vacation Time.
The Executive shall be entitled to paid vacation time and holidays per annum as is consistent with his position with the Company
and the performance of his duties hereunder: provided that the Executive shall not be able to take vacation time at any
time that would materially interfere with the business or operations of the Company. The Executive shall be entitled to four (4)
weeks of paid vacation for each twelve (12) months of employment. The timing is subject to the approval of the CEO.

 

(c) The Executive is entitled to paid time
for all observed holidays.

 

7. DEDUCTIONS AND WITHHOLDINGS.
The amounts payable or which become payable to the Executive under any provision of this Agreement shall be subject to such
deductions and withholdings as is required by applicable

 

8. INDEMNIFICATlON.
The Company shall indemnify the Executive in his capacity as an officer of the Company to the fullest extent permitted by
applicable law against all debts, judgments, costs. charges, or expenses whatsoever incurred or sustained by the Executive in
connection with any action, suit or proceeding to which the Executive may be made a party by reason of his being or having
been an officer of the Company, or because of actions taken by the Executive which were believed by the Executive to be in
the best interests of the Company. and the Executive shall be entitled to be covered by any directors’ and
officers’ liability insurance policies which the Company may maintain for the benefit of its directors and officers.
subject to the limitations of any such policies. The Company shall have the right to assume, with legal counsel of its
choice. the defense. of the Executive in any such action, suit or proceeding for which the Company is providing
indemnification to the Executive. Should the Executive determine to employ separate legal counsel in any such action, suit or
proceeding. any costs and expenses of such separate legal counsel shall be the sole responsibility of the Executive. If the
Company does not assume the defense of any such action, suit or other proceeding. the Company shall, upon request of the
Executive, promptly advance or pay an amount for costs or expenses (including, without limitation, the reasonable legal fees
and expenses of counsel retained by the Executive) incurred by the Executive in connection with any such action, suit or
proceeding. TI1e Company shall not indemnify the Executive against any actions that would be deemed illegal or contrary to
the general indemnification provisions of the Delaware General Corporation Law.

 

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9. RESTRICTIONS, RESPECTING CONFIDENTIAL
INFORMATION, COMPETING BUSINESSES, ETC.

 

(a) Acknowledgments
of Executive. The Executive acknowledges and ages that by virtue of the Executive’ s position and involvement with
the business and affairs of the Company, the Executive will develop substantial expertise and knowledge with respect to all
aspects of the business. affairs and operations of the Company and will have access to all significant aspects of the
business and operations of the Company and to Confidential and Proprietary Information (as such term is hereinafter defined).
The Executive acknowledges and agrees that the Company will be damaged if the Executive were to breach any of the provisions
of this Section 10 or if the Executive were to disclose or make unauthorized use of any Confidential and Proprietary
Information. Accordingly, the Executive expressly acknowledges and agrees that the Executive is voluntarily entering into
this Agreement and that the terms, provisions and conditions of this Section 10 are fair and reasonable and necessary to
adequately protect the Company.

 

(a) Definition of
Confidential Information. For purposes of this: Agreement the term “Confidential and Proprietary Information”
shall mean any and all (confidential or proprietary information or material not in the public domain about or relating to
the business operations, assets or financial condition of the Company or any of its subsidiaries or affiliates, or any of its
trade secrets, including, without limitation, research and development plans or projects: data and reports: computer materials
such as programs. instructions and printouts; formulas: product testing information: business improvements, processes, marketing
and selling strategies; strategic business plans (whether pursued or not): budgets: unpublished financial statements; licenses:
pricing. pricing strategy and cost data: information regarding the skills and compensation of executives; the identities of clients
and potential clients: and (ii) any other information documentation or material not in the public domain by virtue of any action
by or on the part of the Executive, the knowledge of which gives or may give the Company or any of its subsidiaries or affiliates
a material competitive advantage over any entity not possessing such information. For purposes hereof, the term Confidential and
Proprietary Information shall not include any information or material (i) that is known to the general public other than due to
a breach of this Agreement by the Executive; or (ii) was disclosed to the Executive by a person or entity who the Executive did
not reasonably believe was bound to a confidentiality or similar agreement with the Company.

 

(b) Disclosure of
Confidential Information. The Executive hereby covenants and agrees that, while the Executive is employed by the Company and
for a period of one (1) year thereafter. unless otherwise authorized by the Company in writing, the Executive shall not, directly
or indirectly, under any circumstance: (i) disclose to any other person or entity (other than in the regular course of business
of the Company) any Confidential and Proprietary Information, other than pursuant to applicable law, regulation or subpoena or
with the prior written consent of the Company: tit) act or fail to act so as to impair the confidential or proprietary nature
of any Confidential and Proprietary Information; (iii) use any Confidential and Proprietary information other than for the sole
and exclusive benefit of the Company: or (iv) offer or agree to or cause or assist in the inception or continuation of any such
disclosure. impairment or use of any Confidential and Proprietary Information. Following the Employment Term, the Executive shall
return all documents, records and other items containing any Confidential and Proprietary Information to the Company (regardless
of the medium in which maintained or stored). without retaining any copies, notes or excerpts thereof, or at the request of the
Company, shall destroy such documents, records and items (any such destruction to be certified by the Executive to the Company
in writing). Following the Employment Term, the Executive shall return to the Company any property or assets of the Company in
the Executive’s possession.

 

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(c) Non-Compete.
The Executive covenants and agrees that, while the Executive is employed by the Company, in the state of CO and a period
of two (2) years thereafter, the Executive shall not, directly or indirectly, manage, operate or control or participate in
the ownership, management, operation or control of or otherwise become interested in (whether as an owner, stockholder,
member, partner, lender, consultant, executive, officer, director, agent, supplier, distributor or otherwise) any business
which is competitive with the business of the Company or any of its subsidiaries or affiliates, or, directly or indirectly,
induce or influence any person that has a business relationship with the Company or any of its subsidiaries or affiliates to
discontinue or reduce the extent of such relationship. For purposes of this Agreement, the Executive shall be deemed to be
directly or indirectly interested in a business if he is engaged or interested in that business as a stockholder, director,
officer, executive. agent, member, partner individual proprietor, consultant. advisor or otherwise. but not if the
Executive’s interest is limited solely to the ownership of not more than five percent (5%) of the securities of any
class of equity securities of a corporation or other person whose shares are listed or admitted to trade on a national
securities exchange or are quoted on an electronic quotation medium.

 

(d) No
Solicitation. While the Executive is employed by the Company and for one (1) year after the Executive ceases to be an
employed by the Company, the Executive shall not, directly or indirectly, solicit to employ, or employ for himself or others,
any employee of the Company. or any subsidiary or affiliate of the Company, who was not Mown to the Executive prior to the
date of this Agreement.

 

(e) Specific
Performance. Because the breach of any of the provisions of this Section 10 may result in immediate and irreparable
injury to the Company for which the Company may not have an adequate remedy at law, the Company shall be entitled, in
addition to all other rights and remedies available to it at law, in equity or otherwise, to a decree of specific performance
of the restrictive covenants contained in this Section 10 and to a temporary and permanent injunction enjoining such breach
(without being required to post a bond or famish other security to show any damages).

 

(f) Challenge of Agreement by Executive.
In the event the Executive challenges this Agreement and an injunction is issued staying the implementation of any of the restrictions
imposed by Section 10 hereof: the time remaining on the restrictions shall be tolled until the challenge is resolved by final adjudication,
settlement or otherwise, except that the time remaining on the restrictions shall not be tolled during any period in which the
Executive is unemployed.

 

(g) Interpretation
of Restrictions. Executive acknowledges that the type and periods of restriction imposed by this Section 10 are fair and
reasonable and are reasonably required for the protection of the legitimate interests of the Company and the goodwill
associated with the business of the Company; and that the time, scope, geographic area and other provisions of this Agreement
have been specifically negotiated by sophisticated commercial parties and are given as an integral part of the transactions
contemplated hereby. If any of the covenants in this Section 10, or any part hereof, is hereafter construed to be invalid or
unenforceable, the same shall not affect the remainder of the covenant or covenants herein, which shall be given full effect,
without regard to the invalid portions. In the event that any covenant contained in this Agreement shall. he determined by
any court of competent jurisdiction to be W1enforceable by reason of its extending for too great a period of time or over too
great a geographical area or by reason of its being too extensive in any other respect, it shall he interpreted to extend
only over the maximum period of time for which it may be enforceable and/or over the maximum geographical area as to which it
may be enforceable and/or to the maximum extent in all other respects as to which it may be enforceable, all as determined by
such court in such action.

 

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9. NOTICES.
All notices, demands, consents, requests, instructions and other communications to be given or delivered or permitted
under or by reason of the provisions of this Agreement or in connection with the transactions contemplated hereby shall be in
writing and shall he deemed to be delivered and received by the intended recipient as follows: (i) if personally delivered, on
the “Business Day” (defined as a day on which the New York Stock Exchange is open) of such delivery (as evidenced
by the receipt of the personal delivery service); (ii) if mailed certified or registered mail return receipt requested. four (4)
Business Days after being mailed: (iii) it’ delivered by overnight courier (with all charges having been prepaid), on the
Business Day of such delivery (as evidenced by the receipt of the overnight courier service of recognized standing); or (iv) if
delivered by facsimile or e-mail transmission, on the Business Day of such delivery if sent by 6:00 p.m. in the time zone of the
recipient, or if sent after that time, on the next succeeding Business Day (as evidenced by the printed confirmation of delivery
generated by the sending party’s telecopies machine or e-mail log). If any notice, demand. consent, request. instruction
or other communication cannot be delivered because of a changed address of which no notice was given (in accordance with this
Section 11), or the refusal to accept same, the notice, demand, consent, request, instruction or other communication shall be
deemed received on the second (2nd) Business Day the notice is sent (as evidenced by a sworn affidavit of the sender). All such
notices, demands, consents, requests, instructions and other communications will be sent to the addresses first above written.
Any notice, consent, direction, approval, instruction, request or other communication given in accordance with this Section 11
shall he effective after it is received by the intended recipient.

 

10. GENERAL PROVISIONS.

 

(a) Benefit of an
agreement and Assignment. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective
executors, administrators, successors and permitted assigns; provided, however. that the Executive may not assign any of
his rights or duties hereunder except upon the prior written consent of the Company. This Agreement shall be binding on any successor
to the Company whether by merger. consolidation, acquisition of all or substantially all of the Company’s stock, assets
or business or otherwise, as fully as if such successor were a signatory hereto, and the Company shall cause such successor to,
and such successor shall, expressly assume the Company’s obligations hereunder. The term “Company” as
used it this Agreement shall include all such successors. Except as expressly permitted by Section l l(a), nothing herein is intended
to or shall be construed to confer upon or give any person, other than the parties hereto, any rights, privileges or remedies
under or by reason of this Agreement.

 

Governing Law:
Jurisdiction. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF COLORADO
APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THAT STATE, WITHOUT REGARD OR REFERENCE TO ITS PRINCIPLES OF LAW
CONFLICTS OF LAWS. THIS AGREEMENT SHALL BE CONSTRUED AND INTERPRETED WITHOUT REGARD TO ANY PRESUMPTION AGAINST THE PARTY
CAUSING THIS AGREEMENT TO BE DRAFTED. EACH OF THE PARTIES UNCONDITIONALLY AND IRREVOCABLY CONSENTS TO TILE EXCLUSIVE
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK WITH RESPECT TO ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING
TO THIS AGREEMENT. EACH OF THE PARTIES UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY RIGHT TO CONTEST THE VENUE OF SAID COURTS
OR TO CLAIM THAT SAID COURTS CONSTITUTEAN INCONVENIENT FORUM. EACH OF THE PARTIES UNCONDITIONALLY AND IRREVOCABLY WAIVES THE
RIGHT TO A TRIAL BY JURY IN ANY ACTION, SUITOR PROCEEDING ARISING OUT OF R RELATING TO THIS AGREEMENT.

 

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(b) Entire
Agreement. This Agreement contains the entire understanding and agreement of the parties and supersedes any and all other
prior and/or contemporaneous understandings and agreements, either oral or in writing. between the parties hereto with
respect to the subject matter hereof: all of which are merged herein. Each party to this Agreement acknowledges that no
representations inducements, promises, or agreements, oral or otherwise, have been made by either party, or anyone acting on
behalf of either party, which are not embodied herein and that no other agreement statement or promise not contained in this
Agreement shall be valid or binding.

 

(c) Amendments;
Waiver. This Agreement may be modified, amended or waived only by an instrument in writing signed by the Company and the
Executive. No waiver of any provision hereof shall be valid unless made in writing and signed by the party making the waiver.
No waiver of any provision of this Agreement shall constitute a waiver of any other provision, whether or not similar, nor
shall any waiver constitute a continuing waiver.

 

(d) Attorneys’ Fees. Should any party hereto institute any action or proceeding at law or inequity, or in connection with
any arbitration, to enforce any provision of this Agreement, including an action for declaratory relief or for damages by
reason of an alleged breach of any provision of this Agreement or otherwise in connection with this Agreement or any
provision hereof the prevailing party shall be entitled to recover from the losing party or parties reasonable
attorneys’ fees and expenses for services rendered to the prevailing party in such action or proceeding.

 

(e) Right to Legal
Representation. The Executive represents and warrants that the Executive has. read this Agreement and the Executive understands
connection with the negotiation and execution of this Agreement and that the Executive has either retained and has been represented
by such legal counsel or has knowingly and voluntarily waived his right to such legal counsel and desires to enter into this Agreement
without the benefit of independent legal representation. The Executive acknowledges that Robinson & Cole LLP is representing
the Company in connection with this Agreement and that it is not representing the Executive in connection with this Agreement

 

(f) Affirmations
of the Executive. By the Executive’s signature below, the Executive represents to and agrees with the Company that the
Executive hereby accepts this Agreement subject to all of the terms and provisions hereof. The Executive has reviewed this Agreement
in its entirety, has had an opportunity to obtain the advice of counsel prior to executing this Agreement and folly understands
all of the provisions of this Agreement.

 

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IN
WITNESS WHEREOF, each of the Company and the Executive has executed this Agreement as of the date first above written.

 

	GROWGENERATION CORP.	EXECUTIVE

 

	By	/s/ Darren Lampert	 	By:	/s/ Tony Sullivan
	Print:  	Darren Lampert	 	 	Tony Sullivan

 

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EXHIBIT 1

 

Executive Responsibilities:

 

The Executive is responsible for facilitating
smooth functioning of organization’s operations and ensuring that these meet their objectives. The Executive is the head
of all operating departments and divisions. He mentors and leads our team with multiple responsibilities, ensuring that the organization
gets the right structure to deliver and grow to be the best in the industry.

 

Functions reporting to the Executive include:

 

		●	Finance, Budgets

		●	E-commerce

		●	Commercial

		●	Store Ops

		●	Purchasing, Merchandise Planning

		●	IT

		●	Supply Chain, Logistics

		●	HR

		●	Admin

 

EXECUTIVE Initials:

 

 

GROWGENERATION CORP. Initials:

 

		 

 

 

10egan_Ex10-1

		
			EGAIN CORPORATION
		

		
			AMENDED AND RESTATED 2005 STOCK INCENTIVE PLAN
		

		
			SECTION 1.    ESTABLISHMENT AND PURPOSE.
		

		
			The Plan was adopted by the Board of Directors effective March 11, 2005 (the “Effective Date”) and was subsequently amended and restated on September 10, 2009, on September 30, 2014 and on August 30, 2019. The purpose of the Plan is to promote the long-term success of the Company and the creation of stockholder value by (a) encouraging Employees, Outside Directors and Consultants to focus on critical long-range objectives, (b) encouraging the attraction and retention of Employees, Outside Directors and Consultants with exceptional qualifications and (c) linking Employees, Outside Directors and Consultants directly to stockholder interests through increased stock ownership. The Plan seeks to achieve this purpose by providing for Awards in the form of restricted shares, stock units, options (which may constitute incentive stock options or nonstatutory stock options), or stock appreciation rights.
		

		
			SECTION 2.    DEFINITIONS.
		

		
			(a)    “Affiliate” shall mean any entity other than a Subsidiary, if the Company and/or one or more Subsidiaries own not less than 50% of such entity.
		

		
			(b)     “Award” shall mean any award of an Option, a SAR, a Restricted Share or a Stock Unit under the Plan.
		

		
			(c)     “Award Agreement” shall mean the agreement between the Company and the recipient of an Award which contains the terms, conditions and restrictions pertaining to such Award.
		

		
			(d)     “Board of Directors” or “Board” shall mean the Board of Directors of the Company, as constituted from time to time.
		

		
			(e)     “Change in Control” shall mean the occurrence of any of the following events:
		

		
			(i)       A change in the composition of the Board of Directors occurs, as a result of which fewer than one- half of the incumbent directors are directors who either:
		

		
			(A)     Had been directors of the Company on the “look-back date” (as defined below) (the “original directors”); or
		

		
			(B)     Were elected, or nominated for election, to the Board of Directors with the affirmative votes of at least a majority of the aggregate of the original directors who were still in office at the time of the election or nomination and the directors whose election or nomination was previously so approved (the “continuing directors”);
		

		
			(ii)      Any “person” (as defined below) who by the acquisition or aggregation of securities, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding securities ordinarily (and apart from rights accruing under special circumstances) having the right to vote at elections of directors (the “Base Capital Stock”); except that any change in the relative beneficial ownership of the Company’s securities by any person resulting solely from a reduction in the aggregate number of outstanding shares of Base Capital Stock, and any decrease thereafter in such person’s ownership of securities, shall be disregarded until such person increases in any manner, directly or indirectly, such person’s beneficial ownership of any securities of the Company; or
		

		
			(iii)     The consummation of a merger or consolidation of the Company or a Subsidiary of the Company with or into another entity or any other corporate reorganization, if persons who were not stockholders of the Company immediately prior to such merger, consolidation or other reorganization own immediately after such merger, consolidation or other reorganization 50% or more of the voting power of the outstanding securities of each 

		 

of (A) the Company (or its successor) and (B) any direct or indirect parent corporation of the Company (or its successor); or
		

		
			(iv)     The sale, transfer or other disposition of all or substantially all of the Company’s assets.
		

		
			For purposes of subsection (d)(i) above, the term “look-back” date shall mean the later of (1) the Effective Date or (2) the date 24 months prior to the date of the event that may constitute a Change in Control.
		

		
			For purposes of subsection (d)(ii) above, the term “person” shall have the same meaning as when used in Sections 12(d) and 13(d) of the Exchange Act but shall exclude (1) a trustee or other fiduciary holding securities under an employee benefit plan maintained by the Company or a Parent or Subsidiary and (2) a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the Stock.
		

		
			Any other provision of this Section 2(d) notwithstanding, a transaction shall not constitute a Change in Control if its sole purpose is to change the state of the Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction, and a Change in Control shall not be deemed to occur if the Company files a registration statement with the United States Securities and Exchange Commission for the public offering of securities or debt of the Company to the public.
		

		
			(f)       “Code” shall mean the Internal Revenue Code of 1986, as amended.
		

		
			(g)       “Committee” shall mean the Compensation Committee as designated by the Board of Directors, which is authorized to administer the Plan, as described in Section 3 hereof.
		

		
			(h)       “Company” shall mean eGain Corporation, a Delaware corporation.
		

		
			(i)       “Consultant” shall mean a consultant or advisor who provides bona fide services to the Company, a Parent, a Subsidiary or an Affiliate as an independent contractor (not including service as a member of the Board of Directors) or a member of the board of directors of a Parent or a Subsidiary, in each case who is not an Employee.
		

		
			(j)       “Employee” shall mean any individual who is a common-law employee of the Company, a Parent, a Subsidiary or an Affiliate.
		

		
			(k)       “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.
		

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

		
			(m)     “Fair Market Value” with respect to a Share, shall mean the market price of one Share, determined by the Committee as follows:
		

		
			(i)       If the Stock was traded over-the-counter on the date in question, then the Fair Market Value shall be equal to the last transaction price quoted for such date by the OTC Bulletin Board or, if not so quoted, shall be equal to the mean between the last reported representative bid and asked prices quoted for such date by the principal automated inter-dealer quotation system on which the Stock is quoted or, if the Stock is not quoted on any such system, by the OTC Link Quote system;
		

		
			(ii)      If the Stock was traded on any established stock exchange (such as the New York Stock Exchange or The NASDAQ Stock Market) or national market system on the date in question, then the Fair Market Value shall be equal to the closing price reported for such date by the applicable exchange or system; and
		

		
			

		 

		

		
			(iii)     If none of the foregoing provisions is applicable, then the Fair Market Value shall be determined by the Committee in good faith on such basis as it deems appropriate.
		

		
			In all cases, the determination of Fair Market Value by the Committee shall be conclusive and binding on all persons.
		

		
			(n)       “ISO” shall mean an employee incentive stock option described in Section 422 of the Code.
		

		
			(o)       “Nonstatutory Option” or “NSO” shall mean an employee stock option that is not an ISO.
		

		
			(p)       “Option” shall mean an ISO or Nonstatutory Option granted under the Plan and entitling the holder to purchase Shares.
		

		
			(q)       “Outside Director” shall mean a member of the Board of Directors who is not a common-law employee of, or paid consultant to, the Company, a Parent or a Subsidiary.
		

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

		
			(s)       “Participant” shall mean a person who holds an Award.
		

		
			(t)       “Performance Based Award” shall mean any Restricted Share Award or Stock Unit Award granted to a Participant that is intended to qualify as “performance-based compensation” under Section 162(m) of the Code.
		

		
			(u)       “Plan” shall mean this 2005 Stock Incentive Plan of eGain Corporation, as amended from time to time.
		

		
			(v)       “Purchase Price” shall mean the consideration for which one Share may be acquired under the Plan (other than upon exercise of an Option), as specified by the Committee.
		

		
			(w)      “Restricted Share” shall mean a Share awarded under the Plan.
		

		
			(x)       “SAR” shall mean a stock appreciation right granted under the Plan.
		

		
			(y)       “Service”shall mean service as an Employee, Consultant or Outside Director, subject to such further limitations as may be set forth in the Plan or the applicable Award Agreement. Service does not terminate when an Employee goes on a bona fide leave of absence, that was approved by the Company in writing, if the terms of the leave provide for continued Service crediting, or when continued Service crediting is required by applicable law. However, for purposes of determining whether an Option is entitled to ISO status, an Employee’s employment will be treated as terminating three months after such Employee went on leave, unless such Employee’s right to return to active work is guaranteed by law or by a contract. Service terminates in any event when the approved leave ends, unless such Employee immediately returns to active work. The Company determines which leaves of absence count toward Service, and when Service terminates for all purposes under the Plan.
		

		
			(z)       “Share” shall mean one share of Stock, as adjusted in accordance with Section 11 (if applicable).
		

		
			(aa)     “Stock” shall mean the Common Stock of the Company.
		

		
			(bb)     “Stock Unit” shall mean a bookkeeping entry representing the Company’s obligation to deliver one Share (or distribute cash) on a future date in accordance with the provisions of a Stock Unit Award Agreement.
		

		
			(cc)     “Subsidiary” shall mean any corporation, if the Company and/or one or more other Subsidiaries own not less than 50% of the total combined voting power of all classes of outstanding stock of such corporation. A corporation 

		 

that attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date.
		

		
			(dd)     “Total and Permanent Disability” shall mean any permanent and total disability as defined by Section 22(e)(3) of the Code.
		

		
			SECTION 3.    ADMINISTRATION.
		

		
			(a)       Committee Composition. The Plan shall be administered by a Committee appointed by the Board, or by the Board acting as the Committee. The Committee shall consist of two or more directors of the Company. In addition, to the extent required by the Board, the composition of the Committee shall satisfy (i) such requirements as the Securities and Exchange Commission may establish for administrators acting under plans intended to qualify for exemption under Rule 16b-3 (or its successor) under the Exchange Act; and (ii) such requirements as the Internal Revenue Service may establish for outside directors acting under plans intended to qualify for exemption under Section 162(m)(4)(C) of the Code.
		

		
			(b)       Committee for Non-Officer Grants. The Board may also appoint one or more separate committees of the Board, each composed of one or more directors of the Company who need not satisfy the requirements of Section 3(a), who may administer the Plan with respect to Employees who are not considered officers or directors of the Company under Section 16 of the Exchange Act, may grant Awards under the Plan to such Employees and may determine all terms of such Awards. Within the limitations of the preceding sentence, any reference in the Plan to the Committee shall include such committee or committees appointed pursuant to the preceding sentence. To the extent permitted by applicable laws, the Board of Directors may also authorize one or more officers of the Company to designate Employees, other than officers under Section 16 of the Exchange Act, to receive Awards and/or to determine the number of such Awards to be received by such persons; provided, however, that the Board of Directors shall specify the total number of Awards that such officers may so grant.
		

		
			(c)       Committee Procedures. The Board of Directors shall designate one of the members of the Committee as chairman. The Committee may hold meetings at such times and places as it shall determine. The acts of a majority of the Committee members present at meetings at which a quorum exists, or acts reduced to or approved in writing (including via email) by all Committee members, shall be valid acts of the Committee.
		

		
			(d)       Committee Responsibilities. Subject to the provisions of the Plan, the Committee shall have full authority and discretion to take the following actions:
		

		
			(i)       To interpret the Plan and to apply its provisions;
		

		
			(ii)      To adopt, amend or rescind rules, procedures and forms relating to the Plan;
		

		
			(iii)     To adopt, amend or terminate sub-plans established for the purpose of satisfying applicable foreign laws including qualifying for preferred tax treatment under applicable foreign tax laws;
		

		
			(iv)     To authorize any person to execute, on behalf of the Company, any instrument required to carry out the purposes of the Plan;
		

		
			(v)      To determine when Awards are to be granted under the Plan;
		

		
			(vi)     To select the Participants to whom Awards are to be granted;
		

		
			(vii)    To determine the type of Award and number of Shares or amount of cash to be made subject to each Award;
		

		
			(viii)   To prescribe the terms and conditions of each Award, including (without limitation) the Exercise Price and Purchase Price, and the vesting or duration of the Award (including accelerating the vesting of Awards, either at the time of the Award or thereafter, without the consent of the Participant), to determine whether an Option 

		 

is to be classified as an ISO or as a Nonstatutory Option, and to specify the provisions of the agreement relating to such Award;
		

		
			(ix)     To amend any outstanding Award Agreement, subject to applicable legal restrictions and to the consent of the Participant if the Participant’s rights or obligations would be materially impaired;
		

		
			(x)      To prescribe the consideration for the grant of each Award or other right under the Plan and to determine the sufficiency of such consideration;
		

		
			(xi)     To determine the disposition of each Award or other right under the Plan in the event of a Participant’s divorce or dissolution of marriage;
		

		
			(xii)    To determine whether Awards under the Plan will be granted in replacement of other grants under an incentive or other compensation plan of an acquired business;
		

		
			(xiii)   To correct any defect, supply any omission, or reconcile any inconsistency in the Plan or any Award Agreement;
		

		
			(xiv)   To establish or verify the extent of satisfaction of any performance goals or other conditions applicable to the grant, issuance, exercisability, vesting and/or ability to retain any Award; and
		

		
			(xv)     To take any other actions deemed necessary or advisable for the administration of the Plan.
		

		
			Subject to the requirements of applicable law, the Committee may designate persons other than members of the Committee to carry out its responsibilities and may prescribe such conditions and limitations as it may deem appropriate, except that the Committee may not delegate its authority with regard to the selection for participation of or the granting of Awards under the Plan to persons subject to Section 16 of the Exchange Act. All decisions, interpretations and other actions of the Committee shall be final and binding on all Participants and all persons deriving their rights from a Participant. No member of the Committee shall be liable for any action that he has taken or has failed to take in good faith with respect to the Plan or any Award under the Plan.
		

		
			SECTION 4.    ELIGIBILITY.
		

		
			(a)       General Rule. Only Employees, Consultants and Outside Directors shall be eligible for the grant of Awards. Only common-law employees of the Company, a Parent or a Subsidiary shall be eligible for the grant of ISOs.
		

		
			(b)       Automatic Grants to Outside Directors.
		

		
			(i)       On the first business day following the conclusion of each regular annual meeting of the Company’s stockholders, commencing with the annual meeting occurring after the Effective Date, each Outside Director who was not elected to the Board for the first time at such meeting and who will continue serving as a member of the Board of Directors thereafter shall receive an Option to purchase 500 Shares (subject to adjustment under Section 11), provided that such Outside Director has served on the Board of Directors for at least six months. Each Option granted under this Section 4(b)(ii) shall vest and become exercisable on the first anniversary of the date of grant; provided, however, that each such Option shall become vested and exercisable in full immediately prior to the next regular annual meeting of the Company’s stockholders following such date of grant in the event such meeting occurs prior to such first anniversary date. Notwithstanding the foregoing, each Option granted under this Section 4(b)(ii) shall become vested and exercisable in full if a Change in Control occurs with respect to the Company during the Participant’s Service.
		

		
			(ii)      The Exercise Price of all Nonstatutory Options granted to an Outside Director under this Section 4(b) shall be equal to 100% of the Fair Market Value of a Share on the date of grant, payable in one of the forms described in Section 8(a), (b), (d), (e), (f) or (h).
		

		
			

		 

		

		
			(iii)     All Nonstatutory Options granted to an Outside Director under this Section 4(b) shall terminate on the earlier of (A) the day before the tenth anniversary of the date of grant of such Options or (B) the date twelve months after the termination of such Outside Director’s Service for any reason; provided, however, that any such Options that are not vested upon the termination of the Outside Director’s Service as a member of the Board of Directors for any reason shall terminate immediately and may not be exercised.
		

		
			(iv)     The Board of Directors or the Committee in its discretion may change and otherwise revise the terms of the Nonstatutory Options granted to Outside Directors under this Section 4(b), including, without limitation, the number of Shares subject thereto, the type of Award to be granted under this Section 4(b), for Options or other Awards granted on or after the date the Board of Directors or Committee determines to make any such change or revision.
		

		
			(c)       Ten-Percent Stockholders. An Employee who owns more than 10% of the total combined voting power of all classes of outstanding stock of the Company, a Parent or Subsidiary shall not be eligible for the grant of an ISO unless such grant satisfies the requirements of Section 422(c)(5) of the Code.
		

		
			(d)       Attribution Rules. For purposes of Section 4(c) above, in determining stock ownership, an Employee shall be deemed to own the stock owned, directly or indirectly, by or for such Employee’s brothers, sisters, spouse, ancestors and lineal descendants. Stock owned, directly or indirectly, by or for a corporation, partnership, estate or trust shall be deemed to be owned proportionately by or for its stockholders, partners or beneficiaries.
		

		
			(e)       Outstanding Stock. For purposes of Section 4(c) above, “outstanding stock” shall include all stock actually issued and outstanding immediately after the grant. “Outstanding stock” shall not include shares authorized for issuance under outstanding options held by the Employee or by any other person.
		

		
			SECTION 5.    STOCK SUBJECT TO PLAN.
		

		
			(a)       Basic Limitation. Shares offered under the Plan shall be authorized but unissued Shares or treasury Shares. The aggregate number of Shares authorized for issuance as Awards under the Plan shall not exceed 4,460,000 Shares. Notwithstanding the foregoing, the number of Shares that may be delivered in the aggregate pursuant to the exercise of ISOs granted under the Plan shall not exceed 4,460,000 Shares plus, to the extent allowable under Section 422 of the Code and the Treasury Regulations promulgated thereunder, any Shares that become available for issuance under the Plan pursuant to Section 5(c). The limitations of this Section 5(a) shall be subject to adjustment pursuant to Section 11. The number of Shares that are subject to Awards outstanding at any time under the Plan shall not exceed the number of Shares which then remain available for issuance under the Plan. The Company shall at all times reserve and keep available sufficient Shares to satisfy the requirements of the Plan.
		

		
			(b)       Section 162(m)Award Limitation. Notwithstanding any contrary provisions of the Plan and subject to the provisions of Section 11, with respect to any Option or SAR intended to qualify as “performance-based compensation” under Section 162(m) of the Code, no Participant eligible for an Award may receive Options or SARs under the Plan in any calendar year that relate to an aggregate of more than 500,000 Shares, and no more than two times this amount in the first year of employment. To the extent required by Section 162(m) of the Code or the regulations thereunder, in applying the foregoing limitation with respect to a Participant, if any Option or SAR is canceled, the canceled Option or SAR shall continue to count against the maximum number of Shares with respect to which Options and SARs may be granted to the Participant. For this purpose, the repricing of an Option or SAR shall be treated as the cancellation of the existing Option or SAR and the grant of a new Option or SAR.
		

		
			(c)       Additional Shares. If Restricted Shares or Shares issued upon the exercise of Options are forfeited, then such Shares shall again become available for Awards under the Plan. If Stock Units, Options or SARs are forfeited or terminate for any reason before being exercised or settled, or an Award is settled in cash without the delivery of Shares to the holder, then any Shares subject to the Award shall again become available for Awards under the Plan. Only the number of Shares (if any) actually issued in settlement of Awards (and not forfeited) shall reduce the number available in Section 5(a) and the balance shall again become available for Awards under the Plan. Any Shares withheld to satisfy the grant or exercise price or tax withholding obligation pursuant to any Award shall again become available for Awards under the Plan. Notwithstanding the foregoing provisions of this Section 5(c), 

		 

Shares that have actually been issued shall not again become available for Awards under the Plan, except for Shares that are forfeited and do not become vested.
		

		
			(d)       Substitution and Assumption of Awards. The Committee may make Awards under the Plan by assumption, substitution or replacement of stock options, stock appreciation rights, stock units or similar awards granted by another entity (including a Parent or Subsidiary), if such assumption, substitution or replacement is in connection with an asset acquisition, stock acquisition, merger, consolidation or similar transaction involving the Company (and/or its Parent or Subsidiary) and such other entity (and/or its affiliate). The terms of such assumed, substituted or replaced Awards shall be as the Committee, in its discretion, determines is appropriate. Any such substitute or assumed Awards shall not count against the Share limitation set forth in Section 5(a).
		

		
			SECTION 6.    RESTRICTED SHARES.
		

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

		
			(b)       Payment for Awards. Restricted Shares may be sold or awarded under the Plan for such consideration as the Committee may determine, including (without limitation) cash, cash equivalents, full-recourse promissory notes, past services and future services.
		

		
			(c)       Vesting. Each Award of Restricted Shares may or may not be subject to vesting. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Restricted Share Award Agreement. A Restricted Share Award Agreement may provide for accelerated vesting in the event of the Participant’s death, disability or retirement or other events. The Committee may determine, at the time of granting Restricted Shares or thereafter, that all or part of such Restricted Shares shall become vested in the event that a Change in Control occurs with respect to the Company.
		

		
			(d)       Voting and Dividend Rights. The holders of Restricted Shares awarded under the Plan shall have the same voting, dividend and other rights as the Company’s other stockholders. A Restricted Share Award Agreement, however, may require that the holders of Restricted Shares invest any cash dividends received in additional Restricted Shares. Such additional Restricted Shares shall be subject to the same conditions and restrictions as the Award with respect to which the dividends were paid.
		

		
			(e)       Restrictions on Transfer of Shares. Restricted Shares shall be subject to such rights of repurchase, rights of first refusal or other restrictions as the Committee may determine. Such restrictions shall be set forth in the applicable Restricted Share Award Agreement and shall apply in addition to any general restrictions that may apply to all holders of Shares.
		

		
			SECTION 7.    TERMS AND CONDITIONS OF OPTIONS.
		

		
			(a)       Stock Option Award Agreement. Each grant of an Option under the Plan shall be evidenced by a Stock Option Award Agreement between the Participant and the Company. Such Option shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions which are not inconsistent with the Plan and which the Committee deems appropriate for inclusion in a Stock Option Award Agreement. The Stock Option Award Agreement shall specify whether the Option is an ISO or an NSO. The provisions of the various Stock Option Award Agreements entered into under the Plan need not be identical.
		

		
			(b)       Number of Shares. Each Stock Option Award Agreement shall specify the number of Shares that are subject to the Option and shall provide for the adjustment of such number in accordance with Section 11.
		

		
			(c)       Exercise Price. Each Stock Option Award Agreement shall specify the Exercise Price. The Exercise Price of an ISO shall not be less than 100% of the Fair Market Value of a Share on the date of grant, except as otherwise 

		 

provided in 4(c), and the Exercise Price of an NSO shall not be less 100% of the Fair Market Value of a Share on the date of grant. Notwithstanding the foregoing, Options may be granted with an Exercise Price of less than 100% of the Fair Market Value per Share on the date of grant pursuant to a transaction described in, and in a manner consistent with, Section 424(a) of the Code. Subject to the foregoing in this Section 7(c), the Exercise Price under any Option shall be determined by the Committee in its sole discretion. The Exercise Price shall be payable in one of the forms described in Section 8.
		

		
			(d)       Withholding Taxes. As a condition to the exercise of an Option, the Participant shall make such arrangements as the Committee may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with such exercise. The Participant shall also make such arrangements as the Committee may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with the disposition of Shares acquired by exercising an Option.
		

		
			(e)       Exercisability and Term. Each Stock Option Award Agreement shall specify the date when all or any installment of the Option is to become exercisable. The Stock Option Award Agreement shall also specify the term of the Option; provided that the term of an ISO shall in no event exceed 10 years from the date of grant (five years for ISOs granted to Employees described in Section 4(c)). A Stock Option Award Agreement may provide for accelerated exercisability in the event of the Participant’s death, disability, or retirement or other events and may provide for expiration prior to the end of its term in the event of the termination of the Participant’s Service. Options may be awarded in combination with SARs, and such an Award may provide that the Options will not be exercisable unless the related SARs are forfeited. Subject to the foregoing in this Section 7(e), the Committee at its sole discretion shall determine when all or any installment of an Option is to become exercisable and when an Option is to expire.
		

		
			(f)       Exercise of Options. Each Stock Option Award Agreement shall set forth the extent to which the Participant shall have the right to exercise the Option following termination of the Participant’s Service with the Company and its Subsidiaries, and the right to exercise the Option of any executors or administrators of the Participant’s estate or any person who has acquired such Option(s) directly from the Participant by bequest or inheritance. Such provisions shall be determined in the sole discretion of the Committee, need not be uniform among all Options issued pursuant to the Plan, and may reflect distinctions based on the reasons for termination of Service.
		

		
			(g)       Effect of Change in Control. The Committee may determine, at the time of granting an Option or thereafter, that such Option shall become exercisable as to all or part of the Shares subject to such Option in the event that a Change in Control occurs with respect to the Company.
		

		
			(h)       No Rights as a Stockholder. A Participant shall have no rights as a stockholder with respect to any Shares covered by his Option until the date of the issuance of a stock certificate for such Shares. No adjustments shall be made, except as provided in Section 11.
		

		
			(i)       Modification, Extension and Renewal of Options. Within the limitations of the Plan, the Committee may modify, extend or renew outstanding options or may accept the cancellation of outstanding options (to the extent not previously exercised), whether or not granted hereunder, in return for the grant of new Options for the same or a different number of Shares and at the same or a different Exercise Price, or in return for the grant of a different Award for the same or a different number of Shares, without stockholder approval. The foregoing notwithstanding, no modification of an Option shall, without the consent of the Participant, materially impair his or her rights or obligations under such Option.
		

		
			(j)       Restrictions on Transfer of Shares. Any Shares issued upon exercise of an Option shall be subject to such special forfeiture conditions, rights of repurchase, rights of first refusal and other transfer restrictions as the Committee may determine. Such restrictions shall be set forth in the applicable Stock Option Award Agreement and shall apply in addition to any general restrictions that may apply to all holders of Shares.
		

		
			(k)       Buyout Provisions. The Committee may at any time (a) offer to buy out for a payment in cash or cash equivalents an Option previously granted or (b) authorize a Participant to elect to cash out an Option previously granted, in either case at such time and based upon such terms and conditions as the Committee shall establish.
		

		
			

		 

		

		
			SECTION 8.    PAYMENT FOR SHARES.
		

		
			(a)       General Rule. The entire Exercise Price or Purchase Price of Shares issued under the Plan shall be payable in lawful money of the United States of America at the time when such Shares are purchased, except as provided in Section 8(b) through Section 8(h) below.
		

		
			(b)       Surrender of Stock. To the extent that a Stock Option Award Agreement so provides, payment may be made all or in part by surrendering, or attesting to the ownership of, Shares which have already been owned by the Participant or his representative. Such Shares shall be valued at their Fair Market Value on the date when the new Shares are purchased under the Plan. The Participant shall not surrender, or attest to the ownership of, Shares in payment of the Exercise Price if such action would cause the Company to recognize compensation expense (or additional compensation expense) with respect to the Option for financial reporting purposes.
		

		
			(c)       Services Rendered. At the discretion of the Committee, Shares may be awarded under the Plan in consideration of services rendered to the Company or a Subsidiary. If Shares are awarded without the payment of a Purchase Price in cash, the Committee shall make a determination (at the time of the Award) of the value of the services rendered by the Participant and the sufficiency of the consideration to meet the requirements of Section 6(b).
		

		
			(d)       Cashless Exercise. To the extent that a Stock Option Award Agreement so provides, payment may be made all or in part by delivery (on a form prescribed by the Committee) of an irrevocable direction to a securities broker to sell Shares and to deliver all or part of the sale proceeds to the Company in payment of the aggregate Exercise Price.
		

		
			(e)       Exercise/Pledge. To the extent that a Stock Option Award Agreement so provides, payment may be made all or in part by delivery (on a form prescribed by the Committee) of an irrevocable direction to a securities broker or lender to pledge Shares, as security for a loan, and to deliver all or part of the loan proceeds to the Company in payment of the aggregate Exercise Price.
		

		
			(f)       Net Exercise. To the extent that a Stock Option Award Agreement so provides, by a “net exercise” arrangement pursuant to which the number of Shares issuable upon exercise of the Option shall be reduced by the largest whole number of Shares having an aggregate Fair Market Value that does not exceed the aggregate exercise price (plus tax withholdings, if applicable) and any remaining balance of the aggregate exercise price (and/or applicable tax withholdings) not satisfied by such reduction in the number of whole Shares to be issued shall be paid by the Optionee in cash other form of payment permitted under the Stock Option Agreement.
		

		
			(g)       Promissory Note. To the extent that a Stock Option Award Agreement or Restricted Share Award Agreement so provides, payment may be made all or in part by delivering (on a form prescribed by the Company) a full- recourse promissory note.
		

		
			(h)       Other Forms of Payment. To the extent that a Stock Option Award Agreement or Restricted Share Award Agreement so provides, payment may be made in any other form that is consistent with applicable laws, regulations and rules.
		

		
			(i)       Limitations under Applicable Law. Notwithstanding anything herein or in a Stock Option Award Agreement or Restricted Share Award Agreement to the contrary, payment may not be made in any form that is unlawful, as determined by the Committee in its sole discretion.
		

		
			SECTION 9.    STOCK APPRECIATION RIGHTS.
		

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

		
			

		 

		

		
			(b)       Number of Shares. Each SAR Award Agreement shall specify the number of Shares to which the SAR pertains and shall provide for the adjustment of such number in accordance with Section 11.
		

		
			(c)       Exercise Price. Each SAR Award Agreement shall specify the Exercise Price. The Exercise Price of a SAR shall not be less than 100% of the Fair Market Value of a Share on the date of grant. Notwithstanding the foregoing, SARs may be granted with an Exercise Price of less than 100% of the Fair Market Value per Share on the date of grant pursuant to a transaction described in, and in a manner consistent with, Section 424(a) of the Code. Subject to the foregoing in this Section 9(c), the Exercise Price under any SAR shall be determined by the Committee in its sole discretion.
		

		
			(d)       Exercisability and Term. Each SAR Award Agreement shall specify the date when all or any installment of the SAR is to become exercisable. The SAR Award Agreement shall also specify the term of the SAR. A SAR Award Agreement may provide for accelerated exercisability in the event of the Participant’s death, disability or retirement or other events and may provide for expiration prior to the end of its term in the event of the termination of the Participant’s service. SARs may be awarded in combination with Options, and such an Award may provide that the SARs will not be exercisable unless the related Options are forfeited. A SAR may be included in an ISO only at the time of grant but may be included in an NSO at the time of grant or thereafter. A SAR granted under the Plan may provide that it will be exercisable only in the event of a Change in Control.
		

		
			(e)       Effect of Change in Control. The Committee may determine, at the time of granting a SAR or thereafter, that such SAR shall become fully exercisable as to all Common Shares subject to such SAR in the event that a Change in Control occurs with respect to the Company.
		

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

		
			(g)       Modification or Assumption of SARs. Within the limitations of the Plan, the Committee may modify, extend or assume outstanding SARs or may accept the cancellation of outstanding SARs (whether granted by the Company or by another issuer) in return for the grant of new SARs for the same or a different number of shares and at the same or a different exercise price, or in return for the grant of a different Award for the same or a different number of Shares, without stockholder approval. The foregoing notwithstanding, no modification of a SAR shall, without the consent of the holder, materially impair his or her rights or obligations under such SAR.
		

		
			(h)       Buyout Provisions. The Committee may at any time (a) offer to buy out for a payment in cash or cash equivalents a SAR previously granted, or (b) authorize a Participant to elect to cash out a SAR previously granted, in either case at such time and based upon such terms and conditions as the Committee shall establish.
		

		
			SECTION 10.    STOCK UNITS.
		

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

		
			(b)       Payment for Awards. To the extent that an Award is granted in the form of Stock Units, no cash consideration shall be required of the Award recipients.
		

		
			(c)       Vesting Conditions. Each Award of Stock Units may or may not be subject to vesting. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Stock Unit Award Agreement. A Stock Unit Award Agreement may provide for accelerated vesting in the event of the Participant’s death, disability or retirement or other events. The Committee may determine, at the time of granting Stock Units or thereafter, that all 

		 

or part of such Stock Units shall become vested in the event that a Change in Control occurs with respect to the Company.
		

		
			(d)       Voting and Dividend Rights. The holders of Stock Units shall have no voting rights. Prior to settlement or forfeiture, any Stock Unit awarded under the Plan may, at the Committee’s discretion, carry with it a right to dividend equivalents. Such right entitles the holder to be credited with an amount equal to all cash dividends paid on one Share while the Stock Unit is outstanding. Dividend equivalents may be converted into additional Stock Units. Settlement of dividend equivalents may be made in the form of cash, in the form of Shares, or in a combination of both. Prior to distribution, any dividend equivalents which are not paid shall be subject to the same conditions and restrictions (including without limitation, any forfeiture conditions) as the Stock Units to which they attach.
		

		
			(e)       Form and Time of Settlement of Stock Units. Settlement of vested Stock Units may be made in the form of cash, (b) Shares or (c) any combination of both, as determined by the Committee. The actual number of Stock Units eligible for settlement may be larger or smaller than the number included in the original Award, based on predetermined performance factors. Methods of converting Stock Units into cash may include (without limitation) a method based on the average Fair Market Value of Shares over a series of trading days. A Stock Unit Award Agreement may provide that vested Stock Units may be settled in a lump sum or in installments. A Stock Unit Award Agreement may provide that the distribution may occur or commence when all vesting conditions applicable to the Stock Units have been satisfied or have lapsed, or it may be deferred to any later date, subject to compliance with Section 409A of the Code. The amount of a deferred distribution may be increased by an interest factor or by dividend equivalents. Until an Award of Stock Units is settled, the number of such Stock Units shall be subject to adjustment pursuant to Section 11.
		

		
			(f)       Death of Participant. Any Stock Unit Award that becomes payable after the Participant’s death shall be distributed to the Participant’s beneficiary or beneficiaries. Each recipient of a Stock Unit Award under the Plan shall designate one or more beneficiaries for this purpose by filing the prescribed form with the Company. A beneficiary designation may be changed by filing the prescribed form with the Company at any time before the Participant’s death. If no beneficiary was designated or if no designated beneficiary survives the Participant, then any Stock Units Award that becomes payable after the Participant’s death shall be distributed to the Participant’s estate.
		

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

		
			SECTION 11.    ADJUSTMENT OF SHARES.
		

		
			(a)       Adjustments. In the event of a subdivision of the outstanding Stock, a declaration of a dividend payable in Shares, a declaration of a dividend payable in a form other than Shares in an amount that has a material effect on the price of Shares, a combination or consolidation of the outstanding Stock (by reclassification or otherwise) into a lesser number of Shares, a recapitalization, a spin-off or a similar occurrence, the Committee shall make appropriate and equitable adjustments in:
		

		
			(i)       The number of Shares available for future Awards under Section 5;
		

		
			(ii)      The limitations set forth in Sections 5(a) and (b) and Section 18;
		

		
			(iii)     The number of NSOs to be granted to Outside Directors under Section 4(b);
		

		
			(iv)     The number of Shares covered by each outstanding Award; and
		

		
			(v)       The Exercise Price under each outstanding Option and SAR.
		

		
			(b)       Dissolution or Liquidation. To the extent not previously exercised or settled, Options, SARs and Stock Units shall terminate immediately prior to the dissolution or liquidation of the Company.
		

		
			

		 

		

		
			(c)       Reorganizations. In the event that the Company is a party to a merger or other reorganization, outstanding Awards shall be subject to the agreement of merger or reorganization. Subject to compliance with Section 409A of the Code, such agreement shall provide for:
		

		
			(i)       The continuation of the outstanding Awards by the Company, if the Company is a surviving corporation;
		

		
			(ii)      The assumption of the outstanding Awards by the surviving corporation or its parent or subsidiary;
		

		
			(iii)     The substitution by the surviving corporation or its parent or subsidiary of its own awards for the outstanding Awards;
		

		
			(iv)     Immediate vesting, exercisability and settlement of outstanding Awards followed by the cancellation of such Awards upon or immediately prior to the effectiveness of such transaction; or
		

		
			(v)       Settlement of the intrinsic value of the outstanding Awards (whether or not then vested or exercisable) in cash or cash equivalents or equity (including cash or equity subject to deferred vesting and delivery consistent with the vesting restrictions applicable to such Awards or the underlying Shares) followed by the cancellation of such Awards (and, for the avoidance of doubt, if as of the date of the occurrence of the transaction the Committee determines in good faith that no amount would have been attained upon the exercise of such Award or realization of the Participant’s rights, then such Award may be terminated by the Company without payment); in each case without the Participant’s consent. Any acceleration of payment of an amount that is subject to section 409A of the Code will be delayed, if necessary, until the earliest time that such payment would be permissible under Section 409A without triggering any additional taxes applicable under Section 409A.
		

		
			The Company will have no obligation to treat all Awards, all Awards held by a Participant, or all Awards of the same type, similarly.
		

		
			(d)       Reservation of Rights. Except as provided in this Section 11, a Participant shall have no rights by reason of any subdivision or consolidation of shares of stock of any class, the payment of any dividend or any other increase or decrease in the number of shares of stock of any class. Any issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or Exercise Price of Shares subject to an Award. The grant of an Award pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business or assets. In the event of any change affecting the Shares or the Exercise Price of Shares subject to an Award, including a merger or other reorganization, for reasons of administrative convenience, the Company in its sole discretion may refuse to permit the exercise of any Award during a period of up to thirty (30) days prior to the occurrence of such event.
		

		
			SECTION 12.    DEFERRAL OF AWARDS.
		

		
			(a)       Committee Powers. Subject to compliance with Section 409A of the Code, the Committee (in its sole discretion) may permit or require a Participant to:
		

		
			(i)       Have cash that otherwise would be paid to such Participant as a result of the exercise of a SAR or the settlement of Stock Units credited to a deferred compensation account established for such Participant by the Committee as an entry on the Company’s books;
		

		
			(ii)      Have Shares that otherwise would be delivered to such Participant as a result of the exercise of an Option or SAR converted into an equal number of Stock Units; or
		

		
			(iii)     Have Shares that otherwise would be delivered to such Participant as a result of the exercise of an Option or SAR or the settlement of Stock Units converted into amounts credited to a deferred compensation account established for such Participant by the Committee as an entry on the Company’s books. Such amounts shall 

		 

be determined by reference to the Fair Market Value of such Shares as of the date when they otherwise would have been delivered to such Participant.
		

		
			(b)       General Rules. A deferred compensation account established under this Section 12 may be credited with interest or other forms of investment return, as determined by the Committee. A Participant for whom such an account is established shall have no rights other than those of a general creditor of the Company. Such an account shall represent an unfunded and unsecured obligation of the Company and shall be subject to the terms and conditions of the applicable agreement between such Participant and the Company. If the deferral or conversion of Awards is permitted or required, the Committee (in its sole discretion) may establish rules, procedures and forms pertaining to such Awards, including (without limitation) the settlement of deferred compensation accounts established under this Section 12.
		

		
			SECTION 13.    AWARDS UNDER OTHER PLANS.
		

		
			The Company may grant awards under other plans or programs. Such awards may be settled in the form of Shares issued under this Plan. Such Shares shall be treated for all purposes under the Plan like Shares issued in settlement of Stock Units and shall, when issued, reduce the number of Shares available under Section 5.
		

		
			SECTION 14.    PAYMENT OF DIRECTOR’S FEES IN SECURITIES.
		

		
			(a)       Effective Date. No provision of this Section 14 shall be effective unless and until the Board has determined to implement such provision.
		

		
			(b)       Elections to Receive NSOs, SARs, Restricted Shares or Stock Units. An Outside Director may elect to receive his or her annual retainer payments and/or meeting fees from the Company in the form of cash, NSOs, SARs, Restricted Shares or Stock Units, or a combination thereof, as determined by the Board. Alternatively, the Board may mandate payment in any of such alternative forms. Such NSOs, SARs, Restricted Shares and Stock Units shall be issued under the Plan. An election under this Section 14 shall be filed with the Company on the prescribed form.
		

		
			(c)       Number and Terms of NSOs, SARs, Restricted Shares or Stock Units. The number of NSOs, SARs, Restricted Shares or Stock Units to be granted to Outside Directors in lieu of annual retainers and meeting fees that would otherwise be paid in cash shall be calculated in a manner determined by the Board. The terms of such NSOs, SARs, Restricted Shares or Stock Units shall also be determined by the Board.
		

		
			SECTION 15.    LEGAL AND REGULATORY REQUIREMENTS.
		

		
			Shares shall not be issued under the Plan unless the issuance and delivery of such Shares complies with (or is exempt from) all applicable requirements of law, including (without limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated thereunder, state securities laws and regulations and the regulations of any stock exchange on which the Company’s securities may then be listed, and the Company has obtained the approval or favorable ruling from any governmental agency which the Company determines is necessary or advisable. The Company shall not be liable to a Participant or other persons as to: (a) the non-issuance or sale of Shares as to which the Company has not obtained from any regulatory body having jurisdiction the authority deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares under the Plan; and (b) any tax consequences expected, but not realized, by any Participant or other person due to the receipt, exercise or settlement of any Award granted under the Plan.
		

		
			SECTION 16.    TAXES.
		

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

		
			

		 

		

		
			(b)       Share Withholding. The Committee may permit a Participant to satisfy all or part of his or her withholding or income tax obligations by having the Company withhold all or a portion of any Shares that otherwise would be issued to him or her or by surrendering all or a portion of any Shares that he or she previously acquired. Such Shares shall be valued at their Fair Market Value on the date when taxes otherwise would be withheld in cash. In no event may a Participant have Shares withheld that would otherwise be issued to him or her in excess of the number necessary to satisfy the minimum legally required tax withholding.
		

		
			(c)       Section 409A. Each Award that provides for “nonqualified deferred compensation” within the meaning of Section 409A of the Code shall be subject to such additional rules and requirements as specified by the Committee from time to time in order to comply with Section 409A. If any amount under such an Award is payable upon a “separation from service” (within the meaning of Section 409A) to a Participant who is then considered a “specified employee” (within the meaning of Section 409A), then no such payment shall be made prior to the date that is the earlier of (i) six months and one day after the Participant’s separation from service, or (ii) the Participant’s death, but only to the extent such delay is necessary to prevent such payment from being subject to interest, penalties and/or additional tax imposed pursuant to Section 409A. In addition, the settlement of any such Award may not be accelerated except to the extent permitted by Section 409A.
		

		
			SECTION 17.    TRANSFERABILITY.
		

		
			Unless the agreement evidencing an Award (or an amendment thereto authorized by the Committee) expressly provides otherwise, no Award granted under this Plan, nor any interest in such Award, may be sold, assigned, conveyed, gifted, pledged, hypothecated or otherwise transferred in any manner (prior to the vesting and lapse of any and all restrictions applicable to Shares issued under such Award), other than by will or the laws of descent and distribution; provided, however, that an ISO may be transferred or assigned only to the extent consistent with Section 422 of the Code. Any purported assignment, transfer or encumbrance in violation of this Section 17 shall be void and unenforceable against the Company.
		

		
			SECTION 18.    PERFORMANCE BASED AWARDS.
		

		
			The number of Shares or other benefits granted, issued, retainable and/or vested under an Award may be made subject to the attainment of performance goals. The Committee may utilize any performance criteria selected by it in its sole discretion to establish performance goals; provided, however, that in the case of any Performance Based Award, the following conditions shall apply:
		

		
			(i)       The amount potentially available under a Performance Based Award shall be subject to the attainment of pre-established, objective performance goals relating to a specified period of service based on one or more of the following performance criteria: (a) cash flow (including operating cash flow), (b) earnings per share, (c) earnings before any combination of interest, taxes, depreciation or amortization, (d) return on equity, (e) total stockholder return, (f) share price performance, (g) return on capital, (h) return on assets or net assets, (i) revenue, (j) income or net income, (k) operating income or net operating income, (l) operating profit or net operating profit, (m) operating margin or profit margin, (n) return on operating revenue, (o) return on invested capital, (p) market segment shares, (q) costs, (r) expenses, (s) achievement of target levels of discovery and/or development of products or services, including but not limited to research or regulatory achievements, (t) third party coverage and/or reimbursement objectives, or (u) test volume metrics (“Qualifying Performance Criteria”), any of which may be measured either individually, alternatively or in any combination, applied to either the Company as a whole or to a business unit or Subsidiary, either individually, alternatively or in any combination, and measured either annually or cumulatively over a period of years, on an absolute basis or relative to a pre-established target, to previous years’ results or to a designated comparison group or index, in each case as specified by the Committee in the Award;
		

		
			(ii)      Unless specified otherwise by the Committee at the time the performance goals are established or otherwise within the time prescribed by Section 162(m) of the Code, the Committee shall appropriately adjust the method of evaluating performance under a Qualifying Performance Criteria for a performance period as follows: (i) to exclude asset write-downs, (ii) to exclude litigation or claim judgments or settlements, (iii) to exclude the effect of changes in tax law, accounting principles or other such laws or provisions affecting reported results, (iv) to exclude accruals for reorganization and restructuring programs, (v) to exclude any extraordinary nonrecurring items as determined under generally accepted accounting principles and/or 

		 

described in managements’ discussion and analysis of financial condition and results of operations appearing in the Company’s annual report to stockholders for the applicable year, (vi) to exclude the dilutive effects of acquisitions or joint ventures, (vii) to assume that any business divested by the Company achieved performance objectives at targeted levels during the balance of a performance period following such divestiture, (viii) to exclude the effect of any change in the outstanding shares of common stock of the Company by reason of any stock dividend or split, stock repurchase, reorganization, recapitalization, merger, consolidation, spin-off, combination or exchange of shares or other similar corporate change, or any distributions to common stockholders other than regular cash dividends, (ix) to exclude the effects of stock based compensation and the award of bonuses under the Company’s bonus plans; and (x) to exclude costs incurred in connection with potential acquisitions or divestitures that are required to be expensed under generally accepted accounting principles, in each case in compliance with Section 162(m);
		

		
			(iii)     The Committee shall establish the applicable performance goals in writing and an objective method for determining the Award earned by a Participant if the goals are attained, while the outcome is substantially uncertain and not later than the 90th day of the performance period (but in no event after 25% of the period of service with respect to which the performance goals relate has elapsed), and shall determine and certify in writing, for each Participant, the extent to which the performance goals have been met prior to payment or vesting of the Award; and
		

		
			(iv)     The Committee may not in any event increase the amount of compensation payable under the Plan upon the attainment of the pre-established performance goals to a Participant who is a “covered employee” within the meaning of Section 162(m) of the Code.
		

		
			(v)       The maximum aggregate number of Shares that may be subject to Performance Based Awards granted to a Participant in any calendar year is 500,000 Shares (subject to adjustment under Section 11), and no more than two times this amount in the first year of employment.
		

		
			SECTION 19.    NO EMPLOYMENT RIGHTS.
		

		
			No provision of the Plan, nor any Award granted under the Plan, shall be construed to give any person any right to become, to be treated as, or to remain an Employee or Consultant. The Company and its Subsidiaries reserve the right to terminate any person’s Service at any time and for any reason, with or without notice.
		

		
			SECTION 20.    DURATION AND AMENDMENTS.
		

		
			(a)       Term of the Plan. The Plan, as set forth herein, shall terminate automatically on September 30, 2024. The Board of Directors may suspend or terminate the Plan at any time.
		

		
			(b)       Right to Amend the Plan. The Board of Directors may amend the Plan at any time and from time to time. Rights and obligations under any Award granted before amendment of the Plan shall not be materially impaired by such amendment, except with consent of the Participant. An amendment of the Plan shall be subject to the approval of the Company’s stockholders only to the extent required by applicable laws, regulations or rules.
		

		
			(c)       Effect of Termination. No Awards shall be granted under the Plan after the termination thereof. The termination of the Plan shall not affect Awards previously granted under the Plan.
		

		
			SECTION 21.    EXECUTION.
		

		
			To record the adoption of the Plan by the Board of Directors, the Company has caused its authorized officer to execute the same.
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						EGAIN CORPORATION

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By

					
					
						/s/ Eric Smit

				
	
					
						 

					
					
						Name

					
					
						Eric Smit

				
	
					
						 

					
					
						Title

					
					
						Chief Financial Officer

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