Document:

Byrna Technologies Inc. S-1

 

Exhibit 10.1 

 

 

BYRNA TECHNOLOGIES INC. 

 

2020 EQUITY INCENTIVE PLAN (AS AMENDED)

1.                 
Purpose. The purpose of the Byrna Technologies Inc.
2020 Equity Incentive Plan is to increase stockholder value and advance the interests of the Company and its Affiliates by furnishing
economic incentives designed to attract, retain and motivate key personnel and to provide a means whereby directors, officers,
managers, employees, consultants and advisors of the Company and its Affiliates by providing a means for them to acquire and maintain
an equity interest in the Company, or be paid incentive compensation, which may (but need not) be measured by reference to the
value of Common Shares, thereby strengthening their commitment to the welfare of the Company and its Affiliates and aligning their
interests with those of the Company’s stockholders.

In connection with
the termination of the Company’s 2017 Stock Option Plan (the “Prior Plan”) and consistent with
the Company’s prior administrative practice, each option certificate evidencing a stock option granted under the Prior Plan
that remains outstanding as of the date of the termination of the Prior Plan (each such stock option, a “Prior Plan
Option”) shall be cancelled and replaced with an Award Agreement evidencing an equivalent Award under the Plan with
no change to any of the material provisions of the Prior Plan Option, including without limitation, the Date of Grant, the Exercise
Price, and the expiration of such Prior Plan Option, and such Prior Plan Option shall be deemed to be granted under the Plan and
shall become, and be, subject to the provisions of the Plan; provided, however, that to the extent that (i) the application
of any provision of the Plan to a Participant’s Prior Plan Option which was intended to be a stock option other than an “incentive
stock option” (within the meaning of Section 422 of the Code) would be considered a “modification, extension or substitution”
(within the meaning of Section 409A of the Code and the applicable guidance thereunder) of the Prior Plan Option, or (ii) the application
of any provision of the Plan to a Participant’s Prior Plan Option which was intended to be an incentive stock option would
be considered a “modification, extension or renewal” (within the meaning of Section 424(h) of the Code and applicable
guidance thereunder) of the Prior Plan Option, such provision of the Plan shall not apply to such Prior Plan Option and the provision
of the Prior Plan, if any, shall apply.

2.                 
Definitions. The following definitions shall be applicable
throughout this Plan:

(a)              
“Affiliate” means (i) any person
or entity that directly or indirectly controls, is controlled by or is under common control with the Company and/or (ii) to the
extent provided by the Committee, any person or entity in which the Company has a significant interest as determined by the Committee
in its discretion. The term “control”

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(including, with correlative meaning,
the terms “controlled by” and “under common control with”), as applied to any person or entity, means the
possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such person
or entity, whether through the ownership of voting or other securities, by contract or otherwise.

(b)              
“Applicable Law” means the requirements related to or implicated by the administration of the
Plan under applicable state corporate law, United States federal and state securities laws, the Code, any securities exchange or
inter-dealer quotation system on which the Common Shares are listed or quoted, and the applicable laws of any foreign country or
jurisdiction where Awards are granted under the Plan or in which the Common Shares are listed or quoted on a securities exchange
or inter-dealer quotation system.

(c)              
“Award” means, individually or
collectively, any Incentive Stock Option, Nonqualified Stock Option, Stock Appreciation Right, Restricted Stock, Restricted Stock
Unit or Stock Bonus Award granted under this Plan.

(d)              
“Award Agreement” means a written agreement, contract, certificate or other instrument or document
made and delivered in accordance with Section 14(a) evidencing the terms and conditions of an Award granted hereunder. Each
Award Agreement shall be subject to the terms and conditions of the Plan.

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

(f)               
“Cause” means, in the case of
a particular Award, unless the applicable Award Agreement states otherwise, (i) the Company or an Affiliate having “cause”
to terminate a Participant’s employment or service, as defined in any employment or consulting agreement or similar document
or policy between the Participant and the Company or an Affiliate in effect at the time of such termination, or (ii) in the absence
of any such employment or consulting agreement, document or policy (or the absence of any definition of “Cause” contained
therein), (A) a continuing material breach or material default (including, without limitation, any material dereliction of duty)
by Participant of any agreement between the Participant and the Company or an Affiliate, except for any such breach or default
which is caused by the physical disability of the Participant (as determined by a neutral physician), or a continuing failure by
the Participant to follow the direction of a duly authorized representative of the Company or an Affiliate; (B) gross negligence,
willful misfeasance or breach of fiduciary duty to the Company or an Affiliate by the Participant; (C) any material violation of
the policies of the Company or an Affiliate, including, but not limited to, those relating to sexual harassment or the disclosure
or misuse of confidential information, or those set forth in the manuals or statements of policy of the Company or an Affiliate;
(D) the commission by the Participant of an act of fraud, embezzlement or any felony or other crime of dishonesty in connection
with the Participant’s duties to the Company or Affiliate of the Company; (E) misappropriation by the Participant of any
assets or business opportunities of the Company or an Affiliate; or (F) conviction of the Participant of a felony or any other
crime that would materially and

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adversely affect: (I) the business reputation
of the Company or Affiliate of the Company, or (II) the performance of the Participant’s duties to the Company or an Affiliate
of the Company.

If, subsequent to
the termination of a Participant’s employment or service with the Company or an Affiliate for any reason other than for Cause,
it is discovered that the Participant’s employment or service could have been terminated for Cause, such Participant’s
employment or service shall, at the discretion of the Committee, be deemed to have been terminated by the Company or an Affiliate
for Cause for all purposes under the Plan, and the Participant shall be required to repay to the Company all amounts received by
him or her in respect of any Award following such termination that would have been forfeited under the Plan had such termination
been by for Cause. Any determination of whether Cause exists shall be made by the Committee in its sole discretion.

(g)              
“Change in Control” shall, in
the case of a particular Award, unless the applicable Award Agreement states otherwise or contains a different definition of “Change
in Control,” be deemed to occur upon:

(i)       A
tender offer (or series of related offers) made and consummated for the ownership of 50% or more of the outstanding voting securities
of the Company, unless as a result of such tender offer more than 50% of the outstanding voting securities of the surviving or
resulting corporation or entity shall be owned in the aggregate by (A) the shareholders of the Company (as of the time immediately
prior to the commencement of such offer), or (B) any employee benefit plan of the Company or its Subsidiaries, and their Affiliates;

 

(ii)       The
merger or consolidation of the Company with another corporation or entity, unless as a result of such merger or consolidation more
than 50% of the outstanding voting securities of the surviving or resulting corporation or entity shall be owned in the aggregate
by (A) the shareholders of the Company (as of the time immediately prior to such transaction); provided, that a merger or
consolidation of the Company with another company which is controlled by persons owning more than 50% of the outstanding voting
securities of the Company shall constitute a Change in Control unless the Committee, in its discretion, determines otherwise, or
(B) any employee benefit plan of the Company or its Subsidiaries, and their Affiliates;

 

(iii)       The
sale of substantially all of the Company’s assets to another entity that is not wholly owned by the Company, unless as a
result of such sale more than 50% of such assets shall be owned in the aggregate by (A) the shareholders of the Company (as of
the time immediately prior to such transaction), or (B) any employee benefit plan of the Company or its Subsidiaries, and their
Affiliates;

 

(iv)       The
acquisition by a Person (as defined below) of 50% or more of the outstanding voting securities of the Company (whether directly,
indirectly,

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beneficially or of record), unless as a result
of such acquisition more than 50% of the outstanding voting securities of the surviving or resulting corporation or entity shall
be owned in the aggregate by (A) the shareholders of the Company (as of the time immediately prior to the first acquisition of
such securities by such Person), or (B) any employee benefit plan of the Company or its Subsidiaries, and their Affiliates; or

 

(v)       The
cessation of individuals who, as of the Effective Date, constitute the members of the Board (the “Current Board
Members”), by reason of a financing, merger, combination, acquisition, takeover or other non-ordinary course transaction
affecting the Company, to constitute at least a majority of the members of the Board unless such change is approved by the Current
Board Members.

 

For purposes of this Section 2(g), ownership
of voting securities shall take into account and shall include ownership as determined by applying the provisions of Rule 13d-3(d)(I)(i)
(as in effect on the Effective Date) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
In addition, for such purposes, “Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified
and used in Sections 13(d) and 14(d) thereof; provided, however, that “Person” shall not include (A)
the Company or any of its Subsidiaries; (B) a trustee or other fiduciary holding securities under an employee benefit plan of the
Company or any of its Subsidiaries; (C) an underwriter temporarily holding securities pursuant to an offering of such securities;
or (D) a corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportion as
their ownership of stock of the Company.

 

(h)              
“Code” means the Internal Revenue
Code of 1986, as amended, and any successor thereto. References in this Plan to any section of the Code shall be deemed to include
any regulations or other interpretative guidance of general applicability issued by any governmental authority under such section,
and any amendments or successor provisions to such section, regulations or guidance.

(i)                
“Committee” means a committee
of at least two (2) individuals as the Board may appoint to administer this Plan or, if no such committee has been appointed by
the Board, the Board. Unless altered by an action of the Board, the Committee shall be the Compensation Committee of the Board.

(j)                
“Common Shares” means the common
stock, par value $0.001 per share, of the Company, or such other securities of the Company as may be designated by the Committee
from time to time in substitution thereof.

(k)              
“Company” means Byrna Technologies
Inc., a Delaware corporation, and any successor thereto.

(l)                
“Current Board Members” has the meaning set forth in Section 2(g).

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(m)            
 “Date of Grant” means the date
on which the granting of an Award is authorized, or such other date as may be specified in such authorization.

(n)              
“Disability” shall have the meaning assigned to such term in any individual employment agreement
or Award Agreement with the Participant or, if no such agreement exists or the agreement does not define “Disability,”
Disability means a “permanent and total” disability incurred by a Participant while in the employ or service of the
Company or an Affiliate. For this purpose, a permanent and total disability shall mean that the Participant is unable to engage
in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected
to result in death or can be expected to last for a continuous period of not less than 12 months; provided, however,
for purposes of determining the term of an Incentive Stock Option pursuant to Section 7(c)(ii), the term “Disability”
shall have the meaning ascribed to it under Section 22(e)(3) of the Code. Except in situations where the Committee is determining
Disability for purposes of the term of an Incentive Stock Option pursuant to Section 7(c)(ii) within the meaning of Section
22(e)(3) of the Code, the Committee may rely on any determination that a Participant is disabled for purposes of benefits under
any long-term disability plan maintained by the Company or any Affiliate in which a Participant participates or, in the absence
of Participant’s participation in such a long-term disability plan, the determination of whether a Participant has incurred
a permanent and total disability shall be made by a physician designated by the Committee, whose determination shall be final and
binding.

(o)              
“Effective Date” means the date
as of which this Plan is adopted by the Board, subject to Section 3.

(p)              
“Eligible Director” means an individual
who is a “non-employee director” within the meaning of Rule 16b-3 under the Exchange Act.

(q)              
“Eligible Person” means any (i)
individual employed by the Company or an Affiliate; provided,
however, that no such employee covered by a collective bargaining
agreement shall be an Eligible Person unless and to the extent that such eligibility is set forth in such collective bargaining
agreement or in an agreement or instrument relating thereto; (ii) director of the Company or an Affiliate; or (iii) consultant
or advisor to the Company or an Affiliate; provided, that if the Securities Act applies, such persons must be eligible to
be offered securities registrable on Form S-8 under the Securities Act.

(r)               
“Exchange Act” has the meaning
set forth in Section 2(g), and any reference in this Plan to any section of (or rule promulgated under) the Exchange Act
shall be deemed to include any rules, regulations or other interpretative guidance of general applicability issued by any governmental
authority under such section or rule, and any amendments or successor provisions to such section, rules, regulations or guidance.

(s)               
“Exercise Price” has the meaning
set forth in Section 7(b).

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(t)                
 “Fair Market Value”, unless otherwise
provided by the Committee in accordance with Applicable Law, means, on a given date, (i) if the Common Shares are listed on a national
securities exchange, the closing sales price on the principal exchange of the Common Shares on such date or, in the absence of
reported sales on such date, the closing sales price on the immediately preceding date on which sales were reported, or (ii) if
the Common Shares are not listed on a national securities exchange, the mean between the bid and offered prices as quoted by any
nationally recognized interdealer quotation system for such date or, in the absence of quoted bid and offered prices on such date,
the mean between the bid and offered prices as quoted on the immediately preceding date on which such amounts were quoted. In the
event that the Common Shares are not listed on a national securities exchange or quoted on a nationally recognized interdealer
quotation system, Fair Market Value will be determined by such other method as the Committee determines in good faith to be reasonable
and in compliance with Code Section 409A, if applicable, and such determination shall be conclusive and binding on all persons.

(u)              
“Immediate Family Members” has
the meaning set forth in Section 14(b).

(v)              
“Incentive Stock Option” means
an Option that is designated by the Committee as an incentive stock option as described in Section 422 of the Code and otherwise
meets the requirements set forth in this Plan.

(w)            
“Indemnifiable Person” shall have
the meaning set forth in Section 4(e).

(x)              
“Nonqualified Stock Option” means
an Option that is not designated by the Committee as an Incentive Stock Option.

(y)              
“Option” means an Award granted
under Section 7.

(z)              
“Option Period” has the meaning
set forth in Section 7(c).

(aa)           
“Participant” means an Eligible
Person who has been selected by the Committee to participate in this Plan and to receive an Award pursuant to Section 6.

(bb)          
“Permitted Transferee” has the
meaning set forth in Section 14(b).

(cc)           
“Person” has the meaning set forth
in Section 2(g).

(dd)          
“Plan” means this Byrna Technologies
Inc. 2020 Equity Incentive Plan, as amended from time to time.

(ee)           
“Restricted Period” means the
period of time determined by the Committee during which an Award may not be sold, assigned, transferred or otherwise disposed of,
pledged or hypothecated as collateral for a loan or as security for the

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performance of any obligation or for
any other purpose, or is otherwise subject to restrictions or, as applicable, the period of time within which performance is measured
for purposes of determining whether an Award has been earned.

(ff)             
“Restricted Stock” means Common Shares, subject to certain specified restrictions (including,
without limitation, a requirement that the Participant remain continuously employed or provide continuous services for a specified
period of time), granted under Section 9.

(gg)          
“Restricted Stock Unit” means an unfunded and unsecured promise to deliver Common Shares, cash,
other securities or other property, subject to certain specified restrictions (including, without limitation, a requirement that
the Participant remain continuously employed or provide continuous services for a specified period of time), granted under Section
9.

(hh)          
“Retirement” means the fulfillment of each of the following conditions: (i) the Participant is
in good standing with the Company and/or an Affiliate of the Company as determined by the Committee; (ii) the voluntary termination
by a Participant of such Participant’s employment or service with the Company and/or an Affiliate; and (iii) that at the
time of such voluntary termination, the sum of: (A) the Participant’s age (calculated to the nearest month, with any resulting
fraction of a year being calculated as the number of months in the year divided by 12), and (B) the Participant’s years of
employment or service with the Company and/or an Affiliate (calculated to the nearest month, with any resulting fraction of a year
being calculated as the number of months in the year divided by 12) is greater than or equal to 62; provided that, in any
case, the foregoing shall only be applicable if, at the time of such Retirement, the Participant shall be at least 55 years of
age and shall have been employed by or served with the Company for no less than five (5) years.

(ii)             
 “SAR Period” has the meaning
set forth in Section 8(c).

(jj)             
“Securities Act” means the Securities
Act of 1933, as amended, and any successor thereto. Reference in this Plan to any section of the Securities Act shall be deemed
to include any rules, regulations or other official interpretative guidance of general applicability issued by any governmental
authority under such section, and any amendments or successor provisions to such section, rules, regulations or guidance.

(kk)          
“Stock Appreciation Right” or
“SAR” means the right pursuant to an
Award granted under Section 8 to receive, upon exercise, an amount payable in cash or Common Shares equal to the number
of Common Shares subject to the Stock Appreciation Right that is being exercised multiplied by the excess of (i) the Fair Market
Value of a Common Share on the date the Award is exercised, over (ii) the Strike Price specified in the Award Agreement and which
meets all of the requirements of Section 1.409A-1(b)(5)(i)(B) of the Treasury Regulations.

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(ll)             
 “Stock Bonus Award” means an
Award granted under Section 10.

(mm)     
“Strike Price” means, except as
otherwise provided by the Committee in the case of Substitute Awards, (i) in the case of a SAR granted in tandem with an Option,
the Exercise Price of the related Option, or (ii) in the case of a SAR granted independent of an Option, the Fair Market Value
of a Common Share on the Date of Grant.

(nn)          
“Subsidiary” means, with respect
to any specified Person:

(i)                
any corporation, association or other business entity of which more than 50% of the total voting power of shares of voting
securities (without regard to the occurrence of any contingency and after giving effect to any voting agreement or stockholders’
agreement that effectively transfers voting power) is at the time owned or controlled, directly or indirectly, by that Person or
one or more of the other Subsidiaries of that Person (or a combination thereof); and

(ii)             
any partnership or limited liability company (or any comparable foreign entity) (a) the sole general partner or managing
member (or functional equivalent thereof) or the managing general partner of which is such Person or Subsidiary of such Person
or (b) the only general partners or managing members (or functional equivalents thereof) of which are that Person or one or more
Subsidiaries of that Person (or any combination thereof).

(oo)          
“Substitute Award” has the meaning
set forth in Section 5(f).

(pp)          
“Treasury Regulations” means any regulations, whether proposed, temporary or final, promulgated
by the U.S. Department of Treasury under the Code, and any successor provisions.

3.                 
Effective Date; Duration. The Plan shall be effective
as of the Effective Date, but no Incentive Stock Options shall be exercised unless and until this Plan has been approved by the
stockholders of the Company, which approval shall be within 12 months after the date this Plan is adopted by the Board. The Plan
shall terminate automatically on 10th anniversary of the Effective Date, and no Award shall be granted pursuant to the
Plan after such date; provided, however,
that such termination shall not affect Awards then outstanding, and the terms and conditions of this Plan shall continue to apply
to such Awards.

4.                 
Administration.

(a)              
The Committee shall administer this Plan. To the extent required to comply with the provisions of Rule 16b-3 promulgated
under the Exchange Act (if the Board is not acting as the Committee under this Plan), each member of the Committee shall, at the
time he takes any action with respect to an Award under this Plan, be an Eligible Director. However, the fact that a Committee
member shall fail to qualify as an Eligible

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Director shall not invalidate any Award
granted by the Committee that is otherwise validly granted under this Plan. The acts of a majority of the members present at any
meeting at which a quorum is present or acts approved in writing by all of the members of the Committee without a meeting shall
be deemed the acts of the Committee. Whether a quorum is present shall be determined based on the Committee’s charter as
approved by the Board.

(b)              
Subject to the provisions of this Plan and Applicable Law, the Committee shall have the sole and plenary authority, in addition
to other express powers and authorizations conferred on the Committee by this Plan and its charter, to: (i) designate Participants;
(ii) determine the type or types of Awards to be granted to a Participant; (iii) determine the number of Common Shares to be covered
by, or with respect to which payments, rights, or other matters are to be calculated in connection with, Awards; (iv) determine
the terms and conditions of any Award; (v) determine whether, to what extent, and under what circumstances Awards may be settled
or exercised in cash, Common Shares, other securities, other Awards or other property, or canceled, forfeited, or suspended, and
the method or methods by which Awards may be settled, exercised, canceled, forfeited, or suspended; (vi) determine whether, to
what extent, and under what circumstances the delivery of cash, Common Shares, other securities, other Awards or other property
and other amounts payable with respect to an Award shall be made; (vii) construe, interpret, administer, reconcile any inconsistency
in, settle any controversy regarding, correct any defect in and/or complete any omission in this Plan and any instrument or agreement
relating to, or Award granted under, this Plan; (viii) establish, amend, suspend, or waive any rules and regulations and appoint
such agents as the Committee shall deem appropriate for the proper administration of this Plan; (ix) accelerate the vesting or
exercisability of, payment for or lapse of restrictions on, Awards, whether or not in connection with a Change in Control; (x)
authorize any person to execute, on behalf of the Company, any instrument required to carry out the purposes of the Plan; and (xi)
exercise discretion to make any other determination and to take any other action that the Committee deems necessary or desirable
for the administration of this Plan. The Committee’s determinations under the Plan need not be uniform and may be made by
it selectively among persons who are eligible to receive, or actually receive, Awards. Without limiting the generality of the foregoing,
the Committee shall be entitled to make non-uniform and selective determinations, amendments and adjustments, and to enter into
non-uniform and selective Award Agreements.

(c)              
The Committee may, by resolution, expressly delegate to a special committee, consisting of one or more directors or other
individuals who may, but need not, be officers of the Company, the authority, within specified parameters as to the number and
types of Awards, to (i) designate officers and/or employees of the Company or any of its Affiliates to be recipients of Awards
under this Plan, and (ii) to determine the number of such Awards to be received by any such Participants; provided, however,
that (A) the resolution so authorizing such officer or officers shall specify the total number of Awards such officer or officers
may so award and the time period during which such officer or

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officers may so award, and (B) such
delegation of duties and responsibilities may not be made with respect to grants of Awards to persons subject to Section 16 of
the Exchange Act. The acts of such delegates shall be treated as acts of the Committee, and such delegates shall report regularly
to the Board and the Committee regarding the delegated duties and responsibilities and any Awards granted. The Committee may not
authorize an officer to designate himself or herself as a recipient of any such rights or options.

(d)              
Unless otherwise expressly provided in this Plan, all designations, determinations, interpretations, and other decisions
under or with respect to this Plan or any Award or any documents evidencing Awards granted pursuant to this Plan shall be within
the sole discretion of the Committee, may be made at any time and shall be final, conclusive and binding upon all persons or entities,
including, without limitation, the Company, any Affiliate, any Participant, any holder or beneficiary of any Award, and any stockholder
of the Company.

(e)              
No member of the Board, the Committee, delegate of the Committee or any employee, advisor or agent of the Company or the
Board or the Committee (each such person, an “Indemnifiable
Person”) shall be liable for any action taken or omitted to be taken or any determination made in good faith
with respect to this Plan or any Award hereunder. Each Indemnifiable Person shall be indemnified and held harmless by the Company
against and from (and the Company shall pay or reimburse on demand for) any loss, cost, liability, or expense (including court
costs and attorneys’ fees) that may be imposed upon or incurred by such Indemnifiable Person in connection with or resulting
from any action, suit or proceeding to which such Indemnifiable Person may be a party or in which such Indemnifiable Person may
be involved by reason of any action taken or omitted to be taken under this Plan or any Award Agreement and against and from any
and all amounts paid by such Indemnifiable Person with the Company’s approval, in settlement thereof, or paid by such Indemnifiable
Person in satisfaction of any judgment in any such action, suit or proceeding against such Indemnifiable Person; provided,
that the Company shall have the right, at its own expense, to assume and defend any such action, suit or proceeding and once the
Company gives notice of its intent to assume the defense, the Company shall have sole control over such defense with counsel of
the Company’s choice. The foregoing right of indemnification shall not be available to an Indemnifiable Person to the extent
that a final judgment or other final adjudication (in either case not subject to further appeal) binding upon such Indemnifiable
Person determines that the acts or omissions of such Indemnifiable Person giving rise to the indemnification claim resulted from
such Indemnifiable Person’s bad faith, fraud or willful criminal act or omission or that such right of indemnification is
otherwise prohibited by law or by the Company’s Certificate of Incorporation or Bylaws. The foregoing right of indemnification
shall not be exclusive of any other rights of indemnification to which any such Indemnifiable Person may be entitled under the
Company’s Certificate of Incorporation or Bylaws, under the Committee’s charter, as a matter of law, or otherwise,
or any other power that the Company may have to indemnify such Indemnifiable Persons or hold them harmless.

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(f)               
 Notwithstanding anything to the contrary contained in this Plan, the Board may, in its sole discretion, at any time and
from time to time, grant Awards and administer this Plan with respect to such Awards. In any such case, the Board shall have all
the authority granted to the Committee under this Plan.

5.                 
Grant of Awards; Shares Subject to this Plan; Limitations.

(a)              
The Committee may, from time to time, grant Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units
and/or Stock Bonus Awards to one or more Eligible Persons.

(b)              
Subject to adjustment in accordance with Section 11, no more than 25,000,000 Common Shares, less the number of Common
Shares underlying any unexercised awards under the Company’s 2013 Stock Option Plan and the Company’s 2017 Stock Option
Plan as of the Effective Date, shall be available for the grant of Awards under the Plan, all or any portion of which may be issued
pursuant to the exercise of Incentive Stock Options. Each Common Share subject to an Option or a Stock Appreciation Right will
reduce the number of Common Shares available for issuance by one share, and each Common Share underlying an Award of Restricted
Stock, Restricted Stock Units, Stock Bonus Awards and Performance Compensation Awards will reduce the number of Common Shares available
for issuance by one share.

(c)              
Common Shares underlying Awards under this Plan that are forfeited, cancelled, expire unexercised, or are settled in cash
shall be available again for Awards under this Plan at the same ratio at which they were previously granted. Notwithstanding the
foregoing, the following Common Shares shall not be available again for Awards under the Plan: (i) shares tendered or held back
upon the exercise of an Option or settlement of an Award to cover the Exercise Price of an Award; (ii) shares that are used or
withheld to satisfy tax withholding obligations of the Participant; and (iii) shares subject to a Stock Appreciation Right that
are not issued in connection with the stock settlement of the SAR upon exercise thereof.

(d)              
Awards that do not entitle the holder thereof to receive or purchase Common Shares shall not be counted against the aggregate
number of Common Shares available for Awards under the Plan.

(e)              
Common Shares delivered by the Company in settlement of Awards may be authorized and unissued shares, shares held in the
treasury of the Company, shares purchased on the open market or by private purchase, or any combination of the foregoing.

(f)               
Awards may, in the sole discretion of the Committee, be granted under the Plan in assumption of, or in substitution for,
outstanding awards previously granted by an entity acquired by the Company or with which the Company combines (“Substitute
Awards”). Substitute Awards shall not be counted against the aggregate number of Common Shares available for Awards
under the Plan; provided that, Substitute

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Awards issued in connection with the
assumption of, or in substitution for, outstanding options intended to qualify as Incentive Stock Options shall be counted against
the aggregate number of Common Shares available for Incentive Stock Options under the Plan. Subject to applicable stock exchange
requirements, available shares under a shareholder-approved plan of an entity directly or indirectly acquired by the Company or
with which the Company combines (as appropriately adjusted to reflect such acquisition or transaction) may be used for Awards under
the Plan and shall not count against the aggregate number of Common Shares available for Awards under the Plan.

6.                 
Eligibility. Participation shall be limited to Eligible
Persons who have entered into an Award Agreement or who have received written notification from the Committee, or from a person
designated by the Committee, that they have been selected to participate in this Plan.

7.                 
Options.

(a)              
Generally. Each Option granted under this
Plan shall be evidenced by an Award Agreement (whether in paper or electronic medium (including email or the posting on a web site
maintained by the Company or a third party under contract with the Company)), which agreements need not be identical. Each Option
so granted shall be subject to the conditions set forth in this Section 7, and to such other conditions not inconsistent
with this Plan as may be set forth in the applicable Award Agreement. All Options granted under this Plan shall be Nonqualified
Stock Options unless the applicable Award Agreement expressly states that the Option is intended to be an Incentive Stock Option.
Notwithstanding any designation of an Option, to the extent that the aggregate Fair Market Value of Common Shares with respect
to which Options designated as Incentive Stock Options are exercisable for the first time by any Participant during any calendar
year (under all plans of the Company or any Subsidiary) exceeds $100,000, such excess Options shall be treated as Nonqualified
Stock Options. Incentive Stock Options shall be granted only to Eligible Persons who are employees of the Company and its Affiliates,
and no Incentive Stock Option shall be granted to any Eligible Person who is ineligible to receive an Incentive Stock Option under
the Code. No Option shall be treated as an Incentive Stock Option unless this Plan has been approved by the stockholders of the
Company in a manner intended to comply with the stockholder approval requirements of Section 422(b)(1) of the Code; provided
that, any Option intended to be an Incentive Stock Option shall not fail to be effective solely on account of a failure to obtain
such approval, but rather such Option shall be treated as a Nonqualified Stock Option unless and until such approval is obtained.
In the case of an Incentive Stock Option, the terms and conditions of such grant shall be subject to and comply with such rules
as may be prescribed by Section 422 of the Code. If for any reason an Option intended to be an Incentive Stock Option (or any portion
thereof) shall not qualify as an Incentive Stock Option, then, to the extent of such nonqualification, such Option or portion thereof
shall be regarded as a Nonqualified Stock Option appropriately granted under this Plan. Notwithstanding the foregoing, the Company
shall have no liability to any Participant or any other person if an

    	 	12	 

    	 

    

Option designated as an Incentive Stock
Option fails to qualify as such at any time or if an Option is determined to constitute “nonqualified deferred compensation”
within the meaning of Section 409A of the Code and the terms of such Option do not satisfy the requirements of Section 409A of
the Code.

(b)              
Exercise Price. The price at which a Common
Share may be purchased upon the exercise of an Option (the “Exercise Price”) shall not be less than 100%
of the Fair Market Value of such share determined as of the Date of Grant; provided, however, that in the case of
an Incentive Stock Option granted to an employee who, at the time of the grant of such Option, owns (or is deemed to own pursuant
to Section 424(d) of the Code) shares representing more than 10% of the total combined voting power of all classes of shares of
the Company or any Affiliate, the Exercise Price per share shall not be less than 110% of the Fair Market Value per share on the
Date of Grant; provided, further, that the Committee may, in accordance with Applicable Law (including the applicable
provisions of Section 409A or 424 of the Code) designate an Exercise Price below Fair Market Value on the Date of Grant if the
Option is granted in substitution for an option previously granted by an entity that is acquired by or merged with the Company
or an Affiliate; provided, further, that notwithstanding any provision herein to the contrary, the Exercise Price
shall not be less than the par value per Common Share.

(c)              
Vesting and Expiration. Options shall vest
and become exercisable in such manner and on such date or dates determined by the Committee and as set forth in the applicable
Award Agreement, and shall expire after such period, not to exceed 10 years from the Date of Grant, as may be determined by the
Committee (the “Option Period”); provided,
however, that the Option Period shall not exceed five (5)
years from the Date of Grant in the case of an Incentive Stock Option granted to a Participant who on the Date of Grant owns (or
is deemed to own pursuant to Section 424(d) of the Code) shares representing more than 10% of the total combined voting power of
all classes of shares of the Company or any Affiliate; provided,
further, that notwithstanding any vesting dates set by the
Committee, the Committee may, in its sole discretion, accelerate the exercisability of any Option at any time and for any reason.
Unless otherwise provided by the Committee in an Award Agreement:

(i)                
an Option shall vest and become exercisable with respect to one-third of the Common Shares subject to such Option on each
of the first three (3) anniversaries of the Date of Grant;

(ii)             
upon termination of employment or service of the Participant granted such Option, the unvested portion of such Option shall
expire, and the vested portion of such Option shall remain exercisable for:

(A)            
one (1) year following termination of employment or service by reason of such Participant’s death or Disability (with
the determination of Disability to be made by the Committee on a case by case basis), but in no event later than the expiration
of the Option Period;

    	 	13	 

    	 

    

(B)             
 for directors, officers and employees of the Company only, for three (3) months following termination of employment or
service by reason of such Participant’s Retirement, but in no event later than the expiration of the Option Period;

(C)             
three (3) months following termination of employment or service for any reason other than such Participant’s death,
Disability or Retirement, and other than such Participant’s termination of employment or service for Cause, but in no event
later than the expiration of the Option Period; and

(iii)           
both the unvested and the vested portion of an Option shall immediately expire upon the termination of the Participant’s
employment or service by the Company for Cause.

Notwithstanding the
foregoing provisions of this Section 7(c) and consistent with the requirements of Applicable Law, the Committee, in its
sole discretion, may extend the post-termination of employment period during which a Participant may exercise vested Options.

(d)              
Method of Exercise and Form of Payment. No
Common Shares shall be delivered pursuant to the exercise of an Option until payment in full of the aggregate Exercise Price therefor
is received by the Company and the Participant has paid to the Company an amount equal to any applicable federal, state, local
and/or foreign income and employment taxes required to be withheld. Options that have become exercisable may be exercised by delivery
of written or electronic notice of exercise to the Company in accordance with the terms of the Award Agreement accompanied by payment
of the aggregate Exercise Price. The aggregate Exercise Price shall be payable (i) in cash, by certified or bank check, or cash
equivalent; and (ii) by such other method as the Committee may permit in accordance with Applicable Law, in its sole discretion,
including without limitation: (A) in other property having a fair market value (as determined by the Committee in its discretion)
on the date of exercise equal to the aggregate Exercise Price; (B) if there is a public market for the Common Shares at such time,
by means of a broker-assisted “cashless exercise” pursuant to which the Company is delivered a copy of irrevocable
instructions to a stockbroker to sell the Common Shares otherwise deliverable upon the exercise of the Option and to deliver promptly
to the Company an amount equal to the aggregate Exercise Price, (C) by a “net exercise” method whereby the Company
withholds from the delivery of the Common Shares for which the Option was exercised that number of Common Shares having a Fair
Market Value equal to the aggregate Exercise Price for the Common Shares for which the Option was exercised, (D) any combination
of the foregoing, or (E) any other form of legal consideration that may be acceptable to the Committee. Any fractional Common Shares
shall be settled in cash.

(e)              
Notification upon Disqualifying Disposition of an Incentive
Stock Option. Each Participant awarded an Incentive Stock Option under this Plan shall notify the Company in writing
immediately after the date he makes a “disqualifying disposition” (as defined below) of all or any portion of the Common
Shares acquired pursuant to the exercise of such Incentive Stock Option. A disqualifying disposition is any “disposition”

    	 	14	 

    	 

    

(within the meaning of Section 424 of
the Code and including, without limitation, any sale) of such Common Shares before the later of (i) two (2) years after the Date
of Grant of the Incentive Stock Option, or (ii) one (1) year after the date of exercise of the Incentive Stock Option. Such written
notice shall advise the Company of the occurrence of the disqualifying disposition and the price realized upon the disposition
of such Common Shares. The Company may, if determined by the Committee and in accordance with procedures established by the Committee,
retain possession of any Common Shares acquired pursuant to the exercise of an Incentive Stock Option as agent for the applicable
Participant until the end of the period described in the preceding sentence.

(f)               
Compliance with Laws, etc. Notwithstanding
the foregoing, in no event shall a Participant be permitted to exercise an Option in a manner that the Committee determines would
violate the Sarbanes-Oxley Act of 2002, if applicable, or any other Applicable Law.

8.                 
Stock Appreciation Rights.

(a)              
Generally. Each SAR granted under this Plan
shall be evidenced by an Award Agreement (whether in paper or electronic medium (including email or the posting on a web site maintained
by the Company or a third party under contract with the Company)), which agreements need not be identical. Each SAR so granted
shall be subject to the conditions set forth in this Section 8, and to such other conditions not inconsistent with this
Plan as may be set forth in the applicable Award Agreement. Any Option granted under this Plan may include tandem SARs (i.e., SARs
granted in conjunction with an Award of Options under this Plan). The Committee also may award SARs to Eligible Persons independent
of any Option.

(b)              
Strike Price. The Strike Price for each SAR granted in conjunction with the Award of an Option shall
be the Exercise Price of the related Option, and the Strike Price of a SAR granted independent of an Option shall be the Fair Market
Value of a Common Share determined as of the Date of Grant; provided, however, that the Committee may, in accordance
with Applicable Law (including the applicable provisions of Section 409A of the Code) designate a Strike Price below Fair Market
Value on the Date of Grant if the SAR is granted in substitution for an appreciation right previously granted by an entity that
is acquired by or merged with the Company or an Affiliate.

(c)              
Vesting and Expiration. A SAR granted in connection
with an Option shall become exercisable and shall expire according to the same vesting schedule and expiration provisions as the
corresponding Option, and a SAR granted independent of an Option shall vest and become exercisable and shall expire in such manner
and on such date or dates determined by the Committee and shall expire after such period, not to exceed 10 years from the Date
of Grant, as may be determined by the Committee (each, the “SAR Period”); provided, however,
that notwithstanding any vesting dates set by the Committee, the Committee may, in its sole discretion, accelerate the exercisability
of any SAR at any

    	 	15	 

    	 

    

time and for any reason. Unless otherwise
provided by the Committee in an Award Agreement:

(i)                
a SAR shall vest and become exercisable with respect to one-third of the Common Shares subject to such SAR on each of the
first three (3) anniversaries of the Date of Grant;

(ii)             
upon termination of employment or service of the Participant granted the SAR, the unvested portion of a SAR shall expire,
and the vested portion of such SAR shall remain exercisable for:

(A)            
one (1) year following termination of employment or service by reason of such Participant’s death or Disability (with
the determination of Disability to be made by the Committee on a case by case basis), but in no event later than the expiration
of the SAR Period;

(B)             
for directors, officers and employees of the Company only, for the remainder of the SAR Period following termination of
employment or service by reason of such Participant’s Retirement;

(C)             
three (3) months following termination of employment or service for any reason other than such Participant’s death,
Disability or Retirement, and other than such Participant’s termination of employment or service for Cause, but in no event
later than the expiration of the SAR Period; and

(iii)           
both the unvested and the vested portion of a SAR shall expire immediately upon the termination of the Participant’s
employment or service by the Company for Cause.

(d)              
Method of Exercise. SARs that have become
exercisable may be exercised by delivery of written or electronic notice of exercise to the Company in accordance with the terms
of the Award, specifying the number of SARs to be exercised and the Date of Grant of the SARs to be exercised. Notwithstanding
the foregoing, if on the last day of the SAR Period (i) the Fair Market Value exceeds the Strike Price, (ii) the Participant has
not exercised the SAR or the corresponding Option (if applicable), and (iii) neither the SAR nor the corresponding Option (if applicable)
has expired, such SAR shall be deemed to have been exercised by the Participant on such last day of the SAR Period and the Company
shall make the appropriate payment therefor.

(e)              
Payment. Upon the exercise of a SAR, the Company
shall pay to the Participant an amount equal to the number of Common Shares subject to the SAR that are being exercised multiplied
by the excess, if any, of the Fair Market Value of one Common Share on the exercise date over the Strike Price, less an amount
equal to any applicable federal, state, local and non-U.S. income and employment taxes required to be withheld. The Company shall
pay such amount in cash, in Common Shares valued at Fair

    	 	16	 

    	 

    

Market Value, or any combination thereof,
as determined by the Committee. Any fractional Common Share shall be settled in cash.

9.                 
Restricted Stock and Restricted Stock Units.

(a)              
Generally. Each grant of Restricted Stock
and Restricted Stock Units shall be evidenced by an Award Agreement (whether in paper or electronic medium (including email or
the posting on a web site maintained by the Company or a third party under contract with the Company)), which agreements need not
be identical. Each such grant shall be subject to the conditions set forth in this Section 9, and to such other conditions
not inconsistent with this Plan as may be set forth in the applicable Award Agreement. Restricted Stock and Restricted Stock Units
shall be subject to such restrictions on transferability and other restrictions as the Committee may impose (including, for example,
limitations on the right to vote Restricted Stock or the right to receive dividends on the Restricted Stock). These restrictions
may lapse separately or in combination at such times, under such circumstances, in such installments, upon the satisfaction of
Performance Goals or otherwise, as the Committee determines at the time of the grant of an Award or thereafter.

(b)              
Restricted Stock Accounts; Escrow or Similar Arrangement.
Unless otherwise determined by the Committee, upon the grant of Restricted Stock, a book entry in a restricted account shall be
established in the Participant’s name at the Company’s transfer agent and, if the Committee determines that the Restricted
Stock shall be held by the Company or in escrow rather than held in such restricted account pending the release of the applicable
restrictions, the Committee may also require the Participant to execute and deliver to the Company (i) an escrow agreement satisfactory
to the Committee, if applicable, and (ii) the appropriate stock power (endorsed in blank) with respect to the Restricted Stock
covered by such agreement. If a Participant shall fail to execute an Award Agreement evidencing an Award of Restricted Stock and,
if applicable, an escrow agreement and blank stock power within the amount of time specified by the Committee, the Award shall
be null and void ab initio. Subject to the restrictions set forth in this Section 9 and the applicable Award Agreement,
the Participant generally shall have the rights and privileges of a stockholder as to such Restricted Stock, including without
limitation the right to vote such Restricted Stock and the right to receive dividends, if applicable. To the extent shares of Restricted
Stock are forfeited, any share certificates issued to the Participant evidencing such shares shall be returned to the Company,
and all rights of the Participant to such shares and as a stockholder with respect thereto shall terminate without further obligation
on the part of the Company.

(c)              
Restricted Stock Units. The terms and conditions of a grant of Restricted Stock Units shall be reflected
in an Award Agreement. No Common Shares shall be issued at the time a Restricted Stock Unit is granted, and the Company will not
be required to set aside funds for the payment of any such Award. Except as otherwise provided in an Award Agreement, a Participant
shall have none of the rights of a

    	 	17	 

    	 

    

stockholder (including, without limitation,
voting rights) with respect to Restricted Stock Units until such time as Common Shares are paid in settlement of such Awards. The
Committee may also grant Restricted Stock Units with a deferral feature, whereby settlement is deferred beyond the vesting date
until the occurrence of a future payment date or event set forth in an Award Agreement in a manner consistent with the applicable
requirements of Section 409A of the Code. At the discretion of the Committee, each Restricted Stock Unit (representing one Common
Share) may be credited with an amount equal to the cash and stock dividends paid by the Company in respect of one Common Share
(“Dividend Equivalents”). Dividend Equivalents shall be withheld by the Company and credited to the Participant’s
account, and interest may be credited on the amount of cash Dividend Equivalents credited to the Participant’s account at
a rate and subject to such terms as determined by the Committee in its discretion. Dividend Equivalents credited to a Participant’s
account and attributable to any particular Restricted Stock Unit (and earnings thereon, if applicable) shall be distributed in
cash or, at the discretion of the Committee, in Common Shares having a Fair Market Value equal to the amount of such Dividend Equivalents
and earnings, if applicable, to the Participant upon settlement of such Restricted Stock Unit and, if such Restricted Stock Unit
is forfeited, the Participant shall have no right to such Dividend Equivalents.

(d)              
Vesting; Acceleration of Lapse of Restrictions.
The Restricted Period with respect to Restricted Stock and Restricted Stock Units shall lapse pursuant to the terms and conditions
set forth in the applicable Award Agreement. Unless otherwise provided by the Committee in an Award Agreement, the unvested portion
of Restricted Stock and Restricted Stock Units shall terminate and be forfeited upon the termination of employment or service of
the Participant granted the applicable Award.

(e)              
Delivery of Restricted Stock and Settlement of Restricted
Stock Units. (i)(i) Upon the expiration of the Restricted Period
with respect to any shares of Restricted Stock, the restrictions set forth in the applicable Award Agreement shall be of no further
force or effect with respect to such shares, except as set forth in the applicable Award Agreement. If an escrow arrangement is
used, upon such expiration, the Company shall deliver to the Participant, or his beneficiary, without charge, the share certificate
evidencing the shares of Restricted Stock that have not then been forfeited and with respect to which the Restricted Period has
expired (rounded down to the nearest full share). Dividends, if any, that may have been withheld by the Committee and attributable
to any particular share of Restricted Stock shall be distributed to the Participant in cash or, at the sole discretion of the Committee,
in shares of Common Stock having a Fair Market Value equal to the amount of such dividends, upon the release of restrictions on
such shares of Restricted Stock and, if such shares of Restricted Stock are forfeited, the Participant shall have no right to such
dividends (except as otherwise set forth by the Committee in the applicable Award Agreement).

(ii)             
Unless otherwise provided by the Committee in an Award Agreement, upon the expiration of the Restricted Period with respect
to the outstanding

    	 	18	 

    	 

    

Restricted Stock Units held by any Participant
and no later than March 15th of the calendar year following the calendar year in which such expiration occurs, the Company
shall deliver a copy of irrevocable instructions to a stockbroker or other third party agent to (A) sell a sufficient number of
Common Shares on behalf of such Participant, in order to fully satisfy the Company’s tax withholding obligations with respect
to such Restricted Stock Units, and (B) hold the remainder of the Participant’s Common Shares with respect to such Restricted
Stock Units in an individual account with such stockbroker or other third party agent on behalf of, and for the benefit of, such
Participant.

(f)               
 Section 83(b) Election. Subject to compliance with Section 83 of the Code and applicable Treasury Regulations,
a Participant may file an election under Section 83(b) of the Code with respect to grants of Restricted Stock; provided,
however, that it shall be the sole responsibility of such Participant to complete and file such election in accordance with
and in the manner provided by Section 83 of the Code and Treasury Regulation Section 1.83-2.

10.             
Stock Bonus Awards. The Committee may issue unrestricted
Common Shares, or other Awards denominated in Common Shares, under this Plan to Eligible Persons, either alone or in tandem with
other Awards, in such amounts as the Committee shall from time to time in its sole discretion determine. Each Stock Bonus Award
granted under this Plan shall be evidenced by an Award Agreement (whether in paper or electronic medium (including email or the
posting on a web site maintained by the Company or a third party under contract with the Company)), which agreements need not be
identical. Each Stock Bonus Award so granted shall be subject to such conditions not inconsistent with this Plan as may be set
forth in the applicable Award Agreement.

11.             
Adjustments Upon Changes in Capital Structure and Similar Events.
In the event of changes in the outstanding Common Shares or in the capital structure of the Company by reason of any stock or extraordinary
cash dividend, stock split, reverse stock split, an extraordinary corporate transaction such as any recapitalization, reorganization,
merger, consolidation, combination, exchange, or other relevant change in capitalization occurring after the Date of Grant of any
Award, Awards granted under the Plan and any Award Agreements, the Exercise Price of Options and the Strike Price of Stock Appreciation
Rights, the maximum number of Common Shares subject to all Awards stated in Section 5 shall be equitably adjusted or substituted,
as to the number, price or kind of a Common Share or other consideration subject to such Awards to the extent necessary to preserve
the economic intent of such Award and to prevent substantial dilution or enlargement of rights under such Award. In the case of
adjustments made pursuant to this Section 11, unless the Committee specifically determines that such adjustment is in the
best interests of the Company or its Affiliates, the Committee shall, in the case of Incentive Stock Options, ensure that any adjustments
under this Section 11 will not constitute a modification, extension or renewal of the Incentive Stock Options within the
meaning of Section 424(h)(3) of the Code and in the case of Nonqualified Stock Options, ensure that any adjustments under this
Section 11 will not constitute a modification of such

    	 	19	 

    	 

    

Nonqualified Stock Options within the
meaning of Section 409A of the Code. Any adjustments made under this Section 11 shall be made in a manner which does not
adversely affect the exemption provided pursuant to Rule 16b-3 under the Exchange Act. The Company shall furnish each Participant
written notice of an adjustment hereunder and, upon notice, such adjustment shall be conclusive and binding for all purposes.

12.             
Effect of Change in Control. Notwithstanding Section 11, except as provided by the Committee in an Award Agreement
or otherwise, in connection with (i) a merger, amalgamation, or consolidation involving the Company in which the Company is
not the surviving corporation, (ii) a merger, amalgamation, or consolidation involving the Company in which the Company is
the surviving corporation but the holders of Common Shares receive securities of another corporation or other property or cash,
(iii) a Change in Control, or (iv) the reorganization, dissolution or liquidation of the Company (each, a “Corporate
Event”), all Awards outstanding on the effective date of such Corporate Event shall be treated in the manner described
in the definitive transaction agreement (or, in the event that the Corporate Event does not entail a definitive agreement to which
the Company is a party, in the manner determined by the Committee in its sole discretion), which agreement may provide, without
limitation, for one or more of the following:

(a)              
The assumption or substitution of any or all Awards in connection with such Corporate Event, in which case the Awards shall
be subject to the adjustment set forth in Section 11, and to the extent that such Awards vest subject to the achievement
of performance objectives or criteria, such objectives or criteria shall be adjusted appropriately to reflect the Corporate Event;

(b)              
The acceleration of vesting of any or all Awards, subject to the consummation of such Corporate Event;

(c)              
The cancellation of any or all Awards (whether vested or unvested) as of the consummation of such Corporate Event, together
with the payment to the Participants holding vested Awards (including any Awards that would vest upon the Corporate Event but for
such cancellation) so canceled of an amount in respect of cancellation based upon the per-share consideration being paid for the
Common Shares in connection with such Corporate Event, less, in the case of Options and SARs, the Exercise Price or Strike Price,
as applicable, (such amounts to be paid on substantially the same schedule and subject to substantially the same terms and conditions
as the consideration payable for the Common Shares in connection with the Corporate Event, unless otherwise determined by the Committee);
provided, however, that Participants holding Options or SARs shall be entitled to consideration in respect of cancellation
of such Awards only if the per-share consideration less the Exercise Price or Strike Price, as applicable, is greater than zero
dollars ($0), and to the extent that the per-share consideration is less than or equal to the Exercise Price or Strike Price, as
applicable, such Awards shall be canceled for no consideration;

(d)              
The cancellation of any or all Options and SARs (whether vested or

    	 	20	 

    	 

    

unvested) as of the consummation of
such Corporate Event; provided, that all Options and SARs to be so cancelled pursuant to this subsection (d) shall first
become exercisable for a period of at least 10 days prior to such Corporate Event, with any exercise during such period of any
unvested Options or SARs to be (i) contingent upon and subject to the occurrence of the Corporate Event, and (ii) effectuated
by such means as are approved by the Committee; and

(e)              
The replacement of any or all Awards (other than Awards that are intended to qualify as “stock rights” that
do not provide for a “deferral of compensation” within the meaning of Section 409A of the Code) with a cash incentive
program that preserves the value of the Awards so replaced (determined as of the consummation of the Corporate Event), with subsequent
payment of cash incentives subject to the same vesting conditions as applicable to the Awards so replaced and payment to be made
within 30 days of the applicable vesting date (or such later date on which the applicable consideration is payable for the Common
Shares in connection with the Corporate Event, unless otherwise determined by the Committee).

Payments to holders
pursuant to Section 12(c) shall be made in cash or, in the sole discretion of the Committee, in the form of such other consideration
necessary for a Participant to receive property, cash, or securities (or a combination thereof) as such Participant would have
been entitled to receive upon the occurrence of the transaction if the Participant had been, immediately prior to such transaction,
the holder of the number of Common Shares covered by the Award at such time (less any Exercise Price or Strike Price, as applicable).
In addition, in connection with any Corporate Event, prior to any payment or adjustment contemplated under this Section 12,
the Committee may require a Participant to (x) represent and warrant as to the unencumbered title to his or her Awards, (y) bear
such Participant’s pro-rata share of any post-closing indemnity obligations and be subject to the same post-closing purchase
price adjustments, escrow terms, offset rights, holdback terms, and similar conditions as the other holders of Common Shares, and
(z) deliver customary transfer documentation as reasonably determined by the Committee.

The Committee need
not take the same action or actions with respect to all Awards or portions thereof or with respect to all Participants. The Committee
may take different actions with respect to the vested and unvested portions of an Award.

13.             
Amendments and Termination.

(a)       Amendment and Termination of this Plan. The
Board may amend, alter, suspend, discontinue, or terminate this Plan or any portion thereof at any time; provided,
that (i) no amendment to the definition of Eligible Person in Section 2(q) shall be made without stockholder approval,
and (ii) no such amendment, alteration, suspension, discontinuation or termination shall be made without stockholder approval
if such approval is necessary to comply with Applicable Law; provided,
further, that any such amendment, alteration, suspension,
discontinuance or termination that would materially and adversely affect the rights of any Participant or any holder or beneficiary
of any Award theretofore

    	 	21	 

    	 

    

granted shall not to that extent be
effective without the prior written consent of the affected Participant, holder or beneficiary.

(b)       Amendment
of Award Agreements. The Committee may waive any conditions or rights under, amend any terms of, or alter, suspend,
discontinue, cancel or terminate, any Award theretofore granted or the associated Award Agreement, prospectively or retroactively;
provided, however, that any such waiver, amendment,
alteration, suspension, discontinuance, cancellation or termination that would materially and adversely affect the rights of the
Participant with respect to such Award shall not to that extent be effective without the consent of the affected Participant; provided,
further, that without stockholder approval, except as otherwise permitted under Section 11, (i) no amendment
or modification may reduce the Exercise Price of any Option or the Strike Price of any SAR, (ii) the Committee may not cancel
any outstanding Option or SAR and replace it with a new Option or SAR, another Award or cash or take any action that would have
the effect of treating such Award as a new Award for tax or accounting purposes, and (iii) the Committee may not take any
other action that is considered a “repricing” for purposes of the stockholder approval rules of the applicable securities
exchange or inter-dealer quotation system on which the Common Shares are listed or quoted.

14.             
General.

(a)       Award Agreements. Each Award under this Plan
shall be evidenced by an Award Agreement, which shall be delivered to the Participant (whether in paper or electronic medium (including
email or the posting on a web site maintained by the Company or a third party under contract with the Company)) and shall specify
the terms and conditions of the Award and any rules applicable thereto, including without limitation, the effect on such Award
of the death, Disability or termination of employment or service of a Participant, or of such other events as may be determined
by the Committee. Each Award Agreement shall be subject to the terms and conditions of the Plan. The Company’s failure to
specify any term of any Award in any particular Award Agreement shall not invalidate such term, provided such terms was duly adopted
by the Board or the Committee. Award Agreements authorized under the Plan may contain such other provisions not inconsistent with
the Plan, including, without limitation, restrictions upon the exercise of Awards, as the Committee may deem advisable.

(b)              
Nontransferability; Trading Restrictions.

(i)                
Each Award shall be exercisable only by a Participant during the Participant’s lifetime, or, if permissible under
Applicable Law, by the Participant’s legal guardian or representative. No Award may be assigned, alienated, pledged, attached,
sold or otherwise transferred or encumbered by a Participant other than by will or by the laws of descent and distribution and
any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against
the Company or an Affiliate; provided, that the designation of a beneficiary shall not constitute an assignment, alienation,
pledge, attachment, sale, transfer or encumbrance.

    	 	22	 

    	 

    

(ii)             
 Notwithstanding the foregoing, the Committee may, in its sole discretion, permit Awards (other than Incentive Stock Options)
to be transferred by a Participant, with or without consideration, subject to such rules as the Committee may adopt consistent
with any applicable Award Agreement to preserve the purposes of this Plan, to: (A) any person who is a “family member”
of the Participant, as such term is used in the instructions to Form S-8 under the Securities Act (an “Immediate
Family Member”); (B) a trust solely for the benefit of the Participant and his or her Immediate Family Members;
(C) a partnership or limited liability company whose only partners or members are the Participant and his or her Immediate Family
Members; or (D) any other transferee as may be approved either (I) by the Board or the Committee in its sole discretion, or (II)
as provided in the applicable Award Agreement (each transferee described in clauses (A), (B), (C) and (D) above is hereinafter
referred to as a “Permitted Transferee”);
provided, that the Participant shall provide the Committee
advance written notice describing the terms and conditions of the proposed transfer and the Committee shall notify the Participant
in writing that such a transfer would comply with the requirements of this Plan.

(iii)           
The terms of any Award transferred in accordance with Section 14(b)(ii) shall apply to the Permitted Transferee and
any reference in this Plan, or in any applicable Award Agreement, to a Participant shall be deemed to refer to the Permitted Transferee,
except that (A) Permitted Transferees shall not be entitled to transfer any Award, other than by will or the laws of descent and
distribution; (B) Permitted Transferees shall not be entitled to exercise any transferred Option unless there shall be in effect
a registration statement on an appropriate form covering the Common Shares to be acquired pursuant to the exercise of such Option
if the Committee determines, consistent with any applicable Award Agreement, that such a registration statement is necessary or
appropriate; (C) the Committee or the Company shall not be required to provide any notice to a Permitted Transferee, whether or
not such notice is or would otherwise have been required to be given to the Participant under this Plan or otherwise; and (D) the
consequences of the termination of the Participant’s employment or service with the Company or an Affiliate under the terms
of this Plan and the applicable Award Agreement shall continue to be applied with respect to the Participant, including, without
limitation, that an Option shall be exercisable by the Permitted Transferee only to the extent, and for the periods, specified
in this Plan and the applicable Award Agreement.

(iv)            
The Committee shall have the right, either on an Award-by-Award basis or as a matter of policy for all Awards or one or
more classes of Awards, to condition the delivery of vested Common Shares received in connection with such Award on the Participant’s
agreement to such restrictions as the Committee may determine.

(c)              
Tax Withholding.

(i)                
A Participant shall be required to pay to the Company or any Affiliate, or the Company or any Affiliate shall have the right
and is hereby authorized to withhold, from any cash, Common Shares, other securities or other property deliverable

    	 	23	 

    	 

    

under any Award or from any compensation
or other amounts owing to a Participant, the amount (in cash, Common Shares, other securities or other property) of any required
withholding taxes in respect of an Award, its exercise, or any payment or transfer under an Award or under this Plan and to take
such other action as may be necessary in the opinion of the Committee or the Company to satisfy all obligations for the payment
of such withholding taxes. In addition, the Committee, in its discretion, may make arrangements with a stockbroker or other third
party agent for the Participant to facilitate the payment of applicable income and self-employment taxes.

(ii)             
Without limiting the generality of Section 14(c)(i), the Committee may, in its sole discretion, permit a Participant
to satisfy, in whole or in part, the foregoing withholding obligations by (A) tendering a cash payment, (B) the delivery of Common
Shares (which are not subject to any pledge or other security interest) owned by the Participant having an aggregate Fair Market
Value equal to the amount of such withholding obligations, or (C) authorizing the Company to withhold from the number of Common
Shares otherwise issuable or deliverable pursuant to the exercise or settlement of the Award a number of Common Shares with an
aggregate Fair Market Value equal to the amount of such withholding obligation (but no more than the maximum individual statutory
rate for the applicable tax jurisdiction).

(d)              
No Claim to Awards; No Rights to Continued Employment; Waiver.
No employee of the Company or an Affiliate, or other person, shall have any claim or right to be granted an Award under this Plan
or, having been selected for the grant of an Award, to be selected for a grant of any other Award. There is no obligation for uniformity
of treatment of Participants or holders or beneficiaries of Awards. The terms and conditions of Awards and the Committee’s
determinations and interpretations with respect thereto need not be the same with respect to each Participant and may be made selectively
among Participants, whether or not such Participants are similarly situated. Neither this Plan nor any action taken hereunder shall
be construed as giving any Participant any right to be retained in the employ or service of the Company or an Affiliate, nor shall
it be construed as giving any Participant any rights to continued service on the Board. The Company or any of its Affiliates may
at any time dismiss a Participant from employment or discontinue any consulting relationship, free from any liability or any claim
under this Plan, unless otherwise expressly provided in this Plan or any Award Agreement. By accepting an Award under this Plan,
a Participant shall thereby be deemed to have waived any claim to continued exercise or vesting of an Award or to damages or severance
entitlement related to non-continuation of the Award beyond the period provided under this Plan or any Award Agreement, notwithstanding
any provision to the contrary in any written employment or other agreement between the Company or its Affiliates and the Participant,
whether any such agreement is executed before, on or after the Date of Grant.

(e)              
International Participants. With respect to
Participants who reside or work outside of the United States of America, the Committee may in its sole discretion amend the terms
of this Plan or outstanding Awards (or establish a sub-plan) with respect

    	 	24	 

    	 

    

to such Participants in order to conform
such terms with the requirements of local law or to obtain more favorable tax or other treatment for such Participants, the Company
or its Affiliates.

(f)               
Designation and Change of Beneficiary. Unless
otherwise provided by the Committee in an Award Agreement, each Participant may file with the Committee a written designation of
one or more persons as the beneficiary(ies) who shall be entitled to receive the amounts payable with respect to an Award, if any,
due under this Plan upon his or her death. A Participant may, from time to time, revoke or change his or her beneficiary designation
without the consent of any prior beneficiary by filing a new designation with the Committee. The last such designation filed with
the Committee shall be controlling; provided, however,
that no designation, or change or revocation thereof, shall be effective unless received by the Committee prior to the Participant’s
death, and in no event shall it be effective as of a date prior to such receipt. If no beneficiary designation is filed by a Participant,
the beneficiary shall be deemed to be his or her spouse or, if the Participant is unmarried at the time of death, his or her estate.

(g)              
Termination of Employment/Service. Unless
determined otherwise by the Committee at any point following such event: (i) neither a temporary absence from employment or service
due to illness, vacation or leave of absence nor a transfer from employment or service with the Company to employment or service
with an Affiliate (or vice-versa) shall be considered a termination of employment or service with the Company or an Affiliate;
and (ii) if a Participant’s employment with the Company and its Affiliates terminates, but such Participant continues to
provide services to the Company and its Affiliates in a non-employee capacity (or vice-versa), such change in status shall not
be considered a termination of employment with the Company or an Affiliate for purposes of this Plan unless the Committee, in its
discretion, determines otherwise.

(h)              
No Rights as a Stockholder. Except as otherwise
specifically provided in this Plan or any Award Agreement, no person shall be entitled to the privileges of ownership in respect
of Common Shares that are subject to Awards hereunder until such shares have been issued or delivered to that person.

(i)                
Government and Other Regulations.

(i)                
The obligation of the Company to settle Awards in Common Shares or other consideration shall be subject to Applicable Law
and to such approvals by governmental agencies as may be required. Notwithstanding any terms or conditions of any Award to the
contrary, the Company shall be under no obligation to offer to sell or to sell, and shall be prohibited from offering to sell or
selling, any Common Shares pursuant to an Award unless such shares have been properly registered for sale pursuant to the Securities
Act with the Securities and Exchange Commission or other Applicable Law or unless the Company has received an opinion of counsel,
satisfactory to the Company, that such shares may be offered or sold without such registration pursuant to an available exemption
therefrom and the terms and conditions of such exemption have been fully

    	 	25	 

    	 

    

complied with. The Company shall be
under no obligation to register for sale under the Securities Act any of the Common Shares to be offered or sold under this Plan.
The Committee shall have the authority to provide that all certificates for Common Shares or other securities of the Company or
any Affiliate delivered under this Plan shall be subject to such stop transfer orders and other restrictions as the Committee may
deem advisable under this Plan, the applicable Award Agreement, the federal securities laws, or the rules, regulations and other
requirements of the Securities and Exchange Commission, any securities exchange or inter-dealer quotation system upon which such
shares or other securities are then listed or quoted and any other Applicable Law, and, without limiting the generality of Section
9, the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.
Notwithstanding any provision in this Plan to the contrary, the Committee reserves the right to add any terms or provisions to
any Award granted under this Plan that it deems necessary or advisable in its sole discretion in order that such Award complies
with the legal requirements of any governmental entity to whose jurisdiction the Award is subject.

(ii)             
The Committee may cancel an Award or any portion thereof if it determines, in its sole discretion, that legal or contractual
restrictions and/or blockage and/or other market considerations would make the Company’s acquisition of Common Shares from
the public markets, the Company’s issuance of Common Shares to the Participant, the Participant’s acquisition of Common
Shares from the Company and/or the Participant’s sale of Common Shares to the public markets, illegal, impracticable or inadvisable.
If the Committee determines to cancel all or any portion of an Award in accordance with the foregoing, unless doing so would violate
Section 409A of the Code, the Company shall pay to the Participant an amount equal to the excess of (A) the aggregate Fair Market
Value of the Common Shares subject to such Award or portion thereof canceled (determined as of the applicable exercise date, or
the date that the shares would have been vested or delivered, as applicable), over (B) the aggregate Exercise Price or Strike Price
(in the case of an Option or SAR, respectively) or any amount payable as a condition of delivery of Common Shares (in the case
of any other Award). Such amount shall be delivered to the Participant as soon as practicable following the cancellation of such
Award or portion thereof. The Committee shall have the discretion to consider and take action to mitigate the tax consequence to
the Participant in cancelling an Award in accordance with this clause.

(j)                
Payments to Persons Other Than Participants.
If the Committee shall find that any person to whom any amount is payable under this Plan is unable to care for his affairs because
of illness or accident, or is a minor, or has died, then any payment due to such person or his estate (unless a prior claim therefor
has been made by a duly appointed legal representative) may, if the Committee so directs the Company, be paid to his spouse, child,
relative, an institution maintaining or having custody of such person, or any other person deemed by the Committee to be a proper
recipient on behalf of such person otherwise entitled to payment. Any such payment shall be a complete discharge of the liability
of the Committee and the Company therefor.

    	 	26	 

    	 

    

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

(l)                
No Trust or Fund Created. Neither this Plan
nor any Award granted hereunder shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship
between the Company or any Affiliate, on the one hand, and a Participant or other person or entity, on the other hand. No provision
of this Plan or any Award Agreement shall require the Company, for the purpose of satisfying any obligations under this Plan, to
purchase assets or place any assets in a trust or other entity to which contributions are made or otherwise to segregate any assets,
nor shall the Company maintain separate bank accounts, books, records or other evidence of the existence of a segregated or separately
maintained or administered fund for such purposes. Participants shall have no rights under this Plan other than as general unsecured
creditors of the Company, except that insofar as they may have become entitled to payment of additional compensation by performance
of services, they shall have the same rights as other employees under Applicable Law.

(m)            
Reliance on Reports. Each member of the Committee
and each member of the Board shall be fully justified in acting or failing to act, as the case may be, and shall not be liable
for having so acted or failed to act in good faith, in reliance upon any report made by the independent public accountant of the
Company and/or its Affiliates and/or any other information furnished in connection with this Plan by any agent of the Company or
the Committee or the Board, other than himself.

(n)              
Relationship to Other Benefits. No payment
under this Plan shall be taken into account in determining any benefits under any pension, retirement, profit sharing, group insurance
or other benefit plan of the Company except as otherwise specifically provided in such other plan.

(o)              
Governing Law. The Plan shall be governed
by and construed in accordance with the internal laws of the State of Delaware, without giving effect to the conflict of laws provisions.

(p)              
Severability. If any provision of this Plan
or any Award or Award Agreement is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to
any person or entity or Award, or would disqualify this Plan or any Award under any law deemed applicable by the Committee, such
provision shall be construed or deemed amended to conform to Applicable Law in the manner that most closely reflects the original
intent of the Award or the Plan, or if it cannot be construed or deemed amended without, in the determination of the Committee,
materially altering the intent of this Plan or the Award, such provision shall be construed or deemed stricken as to

    	 	27	 

    	 

    

such jurisdiction, person or entity
or Award and the remainder of this Plan and any such Award shall remain in full force and effect.

(q)              
Obligations Binding on Successors. The obligations
of the Company under this Plan shall be binding upon any successor corporation or organization resulting from the merger, amalgamation,
consolidation or other reorganization of the Company, or upon any successor corporation or organization succeeding to substantially
all of the assets and business of the Company.

(r)               
Expenses; Gender; Titles and Headings. The
expenses of administering this Plan shall be borne by the Company and its Affiliates. Masculine pronouns and other words of masculine
gender shall refer to both men and women. The titles and headings of the sections in this Plan are for convenience of reference
only, and in the event of any conflict, the text of this Plan, rather than such titles or headings shall control.

(s)               
Other Agreements. Notwithstanding the above, the Committee may require, as a condition to the grant of and/or
the receipt of Common Shares under an Award, that the Participant execute lock-up, stockholder or other agreements, as it may determine
in its sole and absolute discretion.

(t)                
Section 409A. The Plan and all Awards granted hereunder are intended to comply with, or otherwise be exempt
from, the requirements of Section 409A of the Code. The Plan and all Awards granted under this Plan shall be administered, interpreted,
and construed in a manner consistent with Section 409A of the Code to the extent necessary to avoid the imposition of additional
taxes under Section 409A(a)(1)(B) of the Code. Notwithstanding anything in this Plan to the contrary, in no event shall the Committee
exercise its discretion to accelerate the payment or settlement of an Award where such payment or settlement constitutes deferred
compensation within the meaning of Section 409A of the Code unless, and solely to the extent that, such accelerated payment or
settlement is permissible under Section 1.409A-3(j)(4) of the Treasury Regulations. If a Participant is a “specified employee”
(within the meaning of Section 1.409A-1(i) of the Treasury Regulations) at any time during the 12-month period ending on the date
of his termination of employment, and any Award hereunder subject to the requirements of Section 409A of the Code is to be satisfied
on account of the Participant’s termination of employment, satisfaction of such Award shall be suspended until the date that
is six (6) months after the date of such termination of employment. While the Awards granted hereunder are intended to be structured
in a manner to avoid the imposition of any penalty taxes under Section 409A of the Code, in no event whatsoever shall the Company
or any Affiliate be liable for any additional tax, interest, or penalties that may be imposed on a Participant as a result of Section 409A
of the Code or any damages for failing to comply with Section 409A of the Code or any similar state or local laws (other than
for withholding obligations or other obligations applicable to employers, if any, under Section 409A of the Code).

    	 	28	 

    	 

    

(u)              
 Section 16. It is the intent of the Company that the Plan satisfy, and be interpreted in a manner that satisfies,
the applicable requirements of Rule 16b-3 as promulgated under Section 16 of the Exchange Act so that Participants will be entitled
to the benefit of Rule 16b-3, or any other rule promulgated under Section 16 of the Exchange Act, and will not be subject to short-swing
liability under Section 16 of the Exchange Act. Accordingly, if the operation of any provision of the Plan would conflict with
the intent expressed in this Section 14(u), such provision to the extent possible shall be interpreted and/or deemed amended
so as to avoid such conflict.

(v)              
Payments. Participants shall be required to pay, to the extent required by Applicable Law, any amounts required
to receive Common Shares under any Award made under this Plan.

 

As adopted by the
Board of Directors of Byrna Technologies Inc. on October 23, 2020.

As approved by the shareholders of Byrna
Technologies Inc. on November 19, 2020.

As amended by the Board of Directors of Byrna
Technologies, Inc. on February 24, 2021 (such amendment consisted of technical changes not requiring stockholder approval).

 

    	 	29Byrna Technologies Inc. S-1

Exhibit 10.2 

 

BYRNA TECHNOLOGIES, INC.
2020 EQUITY INCENTIVE PLAN

INCENTIVE STOCK OPTION AWARD AGREEMENT

This Incentive Stock Option Award Agreement
(this “Agreement”) is made and entered into as of [DATE] by and between Byrna Technologies, Inc., a Delaware
corporation (the “Company”) and [EMPLOYEE NAME] (the “Participant”).

Date of Grant:                                             

Exercise Price per Share:                            

Number of Option Shares:                          

Expiration Date:                                           

1.                 
Grant of Option.

1.1             
Grant; Type of Option. The Company hereby grants to the Participant an option (the “Option”)
to purchase the total number of Common Shares of the Company equal to the number of Option Shares set forth above, at the Exercise Price
set forth above. The Option is being granted pursuant to the terms of the Company’s 2020 Equity Incentive Plan (the “Plan”).
The Option is intended to be an Incentive Stock Option within the meaning of Section 422 of the Code, although the Company makes no representation
or guarantee that the Option will qualify as an Incentive Stock Option. To the extent that the aggregate Fair Market Value (determined
on the Date of Grant) of the Common Shares with respect to which Incentive Stock Options are exercisable for the first time by the Participant
during any calendar year (under all plans of the Company and its Affiliates) exceeds $100,000, the Options or portions thereof which
exceed such limit (according to the order in which they were granted) shall be treated as Nonqualified Stock Options.

1.2             
Consideration; Subject to Plan. The grant of the Option is made in consideration of the services to be rendered by the
Participant to the Company and is subject to the terms and conditions of the Plan. Capitalized terms used but not defined herein will
have the meaning ascribed to them in the Plan.

2.                 
Exercise Period; Vesting.

2.1             
Vesting Schedule. The Option will become vested and exercisable with respect to [NUMBER] shares on [VESTING SCHEDULE] until
the Option is 100% vested. The unvested portion of the Option will not be exercisable on or after the Participant’s termination
of employment.

2.2             
Expiration. The Option will expire on the Expiration Date set forth above, or earlier as provided in this Agreement or
the Plan.

3.                 
Termination of Employment.

     

     

    

3.1             
 Termination for Reasons Other Than Cause, Death, Disability. If the Participant’s employment is terminated for any
reason other than Cause, death or Disability, the Participant may exercise the vested portion of the Option, but only within such period
of time ending on the earlier of (a) the date three (3) months following the termination of the Participant’s employment, or (b)
the Expiration Date.

3.2             
Termination for Cause. If the Participant’s employment is terminated by the Company for Cause, the Option (whether
vested or unvested) shall immediately terminate and cease to be exercisable.

3.3             
Termination due to Disability. If the Participant’s employment terminates as a result of the Participant’s
Disability, the Participant may exercise the vested portion of the Option, but only within such period of time ending on the earlier
of (a) the date 12 months following the Participant’s termination of employment, or (b) the Expiration Date.

3.4             
Termination due to Death. If the Participant’s employment terminates as a result of the Participant’s death,
the vested portion of the Option may be exercised by the Participant’s estate, by a person who acquired the right to exercise the
Option by bequest or inheritance or by the person designated to exercise the Option upon the Participant’s death, but only within
the time period ending on the earlier of (a) the date 12 months following the Participant’s death, or (b) the Expiration Date.

4.                 
Manner of Exercise.

4.1             
Election to Exercise. To exercise the Option,
the Participant (or in the case of exercise after the Participant’s death or incapacity, the Participant’s executor, administrator,
heir or legatee, as the case may be) must deliver to the Company a notice of intent to exercise in the manner designated by the Committee.

If someone other than the
Participant exercises the Option, then such person must submit documentation reasonably acceptable to the Company verifying that such
person has the legal right to exercise the Option.

4.2             
Payment of Exercise Price. The entire Exercise
Price of the Option shall be payable in full at the time of exercise to the extent permitted by applicable statutes
and regulations, either:

(a)              
in cash or by certified or bank check at the time the Option is exercised;

(b)              
by reducing the number of Common Shares otherwise deliverable upon exercise of such Option with an aggregate Fair Market Value equal
to the aggregate Exercise Price at the time of exercise;

(c)              
by any combination of the foregoing methods; or

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

     2

     

    

4.3             
 Withholding. If the Company, in its discretion,
determines that it is obligated to withhold any tax in connection with the exercise of the Option, the Participant must make arrangements
satisfactory to the Company to pay or provide for any applicable federal, state and local withholding obligations of the Company. The
Participant may satisfy any federal, state or local tax withholding obligation relating to the exercise of the Option by tendering a
cash payment. The Company has the right to withhold from any compensation paid to a Participant.

4.4             
Issuance of Shares. Provided that the exercise notice and payment are in form and substance satisfactory to the Company,
the Company shall issue the Common Shares registered in the name of the Participant, the Participant’s authorized assignee, or
the Participant’s legal representative which shall be evidenced by stock certificates representing the shares with the appropriate
legends affixed thereto, appropriate entry on the books of the Company or of a duly authorized transfer agent, or other appropriate means
as determined by the Company.

5.                 
No Right to Continued Employment; No Rights as Shareholder. Neither the Plan
nor this Agreement shall confer upon the Participant any right to be retained in any position, as an Employee, Consultant or Director
of the Company. Further, nothing in the Plan or this Agreement shall be construed to limit the discretion of the Company to terminate
the Participant’s employment at any time, with or without Cause. The Participant shall not have any rights as a shareholder with
respect to any Common Shares subject to the Option unless and until certificates representing the shares have been issued by the Company
to the holder of such shares, or the shares have otherwise been recorded on the books of the Company or of a duly authorized transfer
agent as owned by such holder.

6.                 
Transferability. The Option is not transferable by the Participant other than
to a designated beneficiary upon the Participant’s death or by will or the laws of descent and distribution, and is exercisable
during the Participant’s lifetime only by him or her. No assignment or transfer of the Option, or the rights represented thereby,
whether voluntary or involuntary, by operation of law or otherwise (except to a designated beneficiary, upon death, by will or the laws
of descent or distribution) will vest in the assignee or transferee any interest or right herein whatsoever, but immediately upon such
assignment or transfer the Option will terminate and become of no further effect.

7.                 
Change in Control.

7.1             
Acceleration of Vesting. Unless otherwise determined by the Committee at the time of a Change in Control, a Change in Control
shall have no effect on the Option.

7.2             
Cash-out. In the event of a Change in Control, the Committee may, in its discretion and upon at least 10 days’ advance
notice to the Participant, cancel the Option and pay to the Participant the value of the Option based upon the price per Common Share
received or to be received by other shareholders of the Company in the event. Notwithstanding the foregoing, if at the time of a Change
in Control the Exercise Price of the Option equals or exceeds the price paid for a Common Share in connection with the Change in Control,
the Committee may cancel the Option without the payment of consideration therefor.

     3

     

    

8.                 
 Adjustments. The Common Shares subject to the Option may be adjusted or terminated
in any manner as contemplated by Section 11 of the Plan.

9.                 
Tax Liability and Withholding. Notwithstanding any action the Company takes
with respect to any or all income tax, social insurance, payroll tax, or other tax-related withholding (“Tax-Related Items”),
the ultimate liability for all Tax-Related Items is and remains the Participant’s responsibility and the Company (a) makes no representation
or undertakings regarding the treatment of any Tax-Related Items in connection with the grant, vesting, or exercise of the Option or
the subsequent sale of any shares acquired on exercise, and (b) does not commit to structure the Option to reduce or eliminate the Participant’s
liability for Tax-Related Items.

10.             
Qualification as an Incentive Stock Option. It is understood that this Option
is intended to qualify as an incentive stock option as defined in Section 422 of the Code to the extent permitted under Applicable Law.
Accordingly, the Participant understands that in order to obtain the benefits of an incentive stock option, no sale or other disposition
may be made of shares for which incentive stock option treatment is desired within one (1) year following the date of exercise of the
Option or within two (2) years from the Date of Grant. The Participant understands and agrees that the Company shall not be liable or
responsible for any additional tax liability the Participant incurs in the event that the Internal Revenue Service for any reason determines
that this Option does not qualify as an incentive stock option within the meaning of the Code.

11.             
Disqualifying Disposition. If the Participant disposes of the Common Shares
prior to the expiration of either two (2) years from the Date of Grant or one (1) year from the date the shares are transferred to the
Participant pursuant to the exercise of the Option (a “Disqualifying Disposition”), the Participant shall notify
the Company in writing within 30 days after such disposition of the date and terms of such disposition. The Participant also agrees to
provide the Company with any information concerning any such dispositions as the Company requires for tax purposes.

12.             
Compliance with Law. The exercise of the Option and the issuance and transfer
of Common Shares shall be subject to compliance by the Company and the Participant with all applicable requirements of federal and state
securities laws and with all applicable requirements of any stock exchange on which the Company’s Common Shares may be listed.
No Common Shares shall be issued pursuant to this Option unless and until any then applicable requirements of state or federal laws and
regulatory agencies have been fully complied with to the satisfaction of the Company and its counsel. The Participant understands that
the Company is under no obligation to register the shares with the Securities and Exchange Commission, any state securities commission
or any stock exchange to effect such compliance.

13.             
Notices. Any notice required to be delivered to the Company under this Agreement
shall be in writing and addressed to the Secretary of the Company at the Company’s principal corporate offices. Any notice required
to be delivered to the Participant under this Agreement shall be in writing and addressed to the Participant at the Participant’s
address as shown in the records of the Company. Either party may designate another address in writing (or by such other method approved
by the Company) from time to time.

     4

     

    

14.             
 Governing Law. This Agreement will be construed and interpreted in accordance
with the laws of the State of Delaware without regard to conflict of law principles.

15.             
Interpretation. Any dispute regarding the interpretation of this Agreement
shall be submitted by the Participant or the Company to the Committee for review. The resolution of such dispute by the Committee shall
be final and binding on the Participant and the Company.

16.             
Options Subject to Plan. This Agreement is subject to the Plan as approved
by the Company’s shareholders. The terms and provisions of the Plan as it may be amended from time to time are hereby incorporated
herein by reference. In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the
applicable terms and provisions of the Plan will govern and prevail.

17.             
Successors and Assigns. The Company may assign any of its rights under this
Agreement. This Agreement will be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the
restrictions on transfer set forth herein, this Agreement will be binding upon the Participant and the Participant’s beneficiaries,
executors, administrators and the person(s) to whom this Agreement may be transferred by will or the laws of descent or distribution.

18.             
Severability. The invalidity or unenforceability of any provision of the Plan
or this Agreement shall not affect the validity or enforceability of any other provision of the Plan or this Agreement, and each provision
of the Plan and this Agreement shall be severable and enforceable to the extent permitted by law.

19.             
Discretionary Nature of Plan. The Plan is discretionary and may be amended,
cancelled or terminated by the Company at any time, in its discretion. The grant of the Option in this Agreement does not create any
contractual right or other right to receive any Options or other Awards in the future. Future Awards, if any, will be at the sole discretion
of the Company. Any amendment, modification, or termination of the Plan shall not constitute a change or impairment of the terms and
conditions of the Participant’s employment with the Company.

20.             
Amendment. The Committee has the right to amend, alter, suspend, discontinue
or cancel the Option, prospectively or retroactively; provided, that, no such amendment shall adversely affect the Participant’s
material rights under this Agreement without the Participant’s consent.

21.             
No Impact on Other Benefits. The value of the Participant’s Option is
not part of his or her normal or expected compensation for purposes of calculating any severance, retirement, welfare, insurance or similar
employee benefit.

22.             
Counterparts. This Agreement may be executed in counterparts, each of which
shall be deemed an original but all of which together will constitute one and the same instrument. Counterpart signature pages to this
Agreement transmitted by facsimile transmission, by electronic mail in portable document format (.pdf), or by any other electronic means
intended to preserve the original graphic and pictorial appearance of a document, will have the same effect as physical delivery of the
paper document bearing an original signature.

     5

     

    

23.             
 Acceptance. The Participant hereby acknowledges receipt of a copy of the Plan
and this Agreement. The Participant has read and understands the terms and provisions thereof, and accepts the Option subject to all
of the terms and conditions of the Plan and this Agreement. The Participant acknowledges that there may be adverse tax consequences upon
exercise of the Option or disposition of the underlying shares and that the Participant should consult a tax advisor prior to such exercise
or disposition.

 

 

 

[Signature
page follows]

     6

     

    

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

 

	 	BYRNA TECHNOLOGIES, INC.

	 	 	 
	 	 	 
	 	By 	 
	 	 	 
	 	Name 	 
	 	 	 
	 	Title 	 
	 	 	 

	 	PARTICIPANT

	 	 	 
	 	 	 
	 	By 	 
	 	 	 
	 	Name 	 

 

     7

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